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Minutes 2009-06-23MINUTES REGULAR MEETING OF THE CITY COUNCIL TUESDAY, JUNE 23, 2009 COUNCIL CHAMBERS, 275 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. CALL TO ORDER Mayor Ferrara called the Regular City Council meeting to order at 7:05 p.m. 2. ROLL CALL City Council: Council Member Chuck Fellows, Council Member Jim Guthrie, Mayor Pro Tern Joe Costello, and Mayor Tony Ferrara were present. CouncN Member Arnold was absent. City Staff Present: City Manager Steve Adams, City Attorney Tim Carmel, Director of Administrative Services/City Clerk Kelly Wetmore, Director of Financial Services Angela Kraetsch, Director of Parks, Recreation and Facilities Doug Perrin, Fire Chief Mike Hubert, Director of Community Development Rob Strong, and Chief of Police Steve Annibali. 3. FLAG SALUTE Teny Orton, representing the Arroyo Grande Lions Club, led the Flag Salute. 4. INVOCATION Rev. Valerie Valle, Saint Bamabas Episcopal Church, delivered the invocation. 5. SPECIAL PRESENTATIONS None. 6. AGENDA REVIEW 5.a. Ordinances Read in Title Only. Mayor Pro Tem Costello moved, Council Member Guthrie seconded, and the motion passed unanimously that all ordinances moved for introduction or adoption at the meeting shall be read in ti8e only and all further reading be waived. 7. CITIZENS' INPUT. COMMENTS. AND SUGGESTIONS None. 8. CONSENT AGENDA Mayor Ferrara invked members of the public who wished to comment on any Consent Agenda Item to do so at this time. Patricia Wilmore, representing Pack, Gas & Electric (PGi;<E), referred to Item 8.g. and supported the City's efforts and goals for the community to become carbon neutral. She spoke about several programs that PG&E offers as a result of recent legislation (AB 811 and AB 2468) and stated that PG&E would like to work with the City to reduce its carbon footprint. No further public comments were received. Action: Council Member Fellows moved, and Council Member Guthrie seconded the motion to approve Consent Agenda Items 8.a. through 8.1. The motion passed on the following roll-call vote: Minutes: C/ty Council Meeting Page 2 Tuesday, June T3, 2009 AYES: Fellows, Guthrie, Costello, Ferrara NOES: None ABSENT: Amold 8.a. Cash Disbursement Ratification. Actlon: Raged the listing of cash disbursements for the period June 1, 2009 through June 15, 2009. 8.b. Consideration of Statement of Investment Deposits. Aetlon: Received and filed the report of current investment deposits as of May 31, 2009. 8.t. Consideratlon of Cost Allocation Plan. Recommended Action: Adopted the Fiscal Year 2009-10 Cost Allocation Plan. 8.d. Consideratlon of Approval of Minutes. Actlon: Approved the minutes of the Special and Regular City Council Meetings of May 26, 2009, as submitted. 8.e. Authorizatlon To Reject Claim Filed Against The City -Claimant: J. HaMabrin. Action: Rejected the claim and authorize the City Clerk to send a standard rejection letter to the claimant as recommended by the City's Claims Administrator, Carl Warren & Company. 8.f. Consideratlon of Resolutlon Opposing Governor's Proposal to Seize Local Gas Tax Funds. Actlon: 1) Adopted Resolution No. 4197 as follows: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AUTHORIZING THE C/TY ATTORNEY TO COOPERATE WITH THE LEAGUE OF CALIFORNIA CITIES, OTHER CITIES AND COUNTIES /N LITIGATION CHALLENGING THE CONSTITUTIONALITY OF ANY SEIZURE BY STATE GOVERNMENT OF THE CITY'S STREET MAINTENANCE FUNDS°,• and 2) Directed the City Attorney to coordinate with the League of Calrfomia Cities regarding potential litigation. 8.g. Consideration of Consultant Services Agreement with Contlnental Wind Power for a Feasibility Study on Solar and Wind Power Facilities. Action: 1) Approved and authorized the City Manager to execute a Consultant Services Agreement with Continental Wind Power to prepare a feasibility study on solar and wind power faalities; and 2) Established as a goal of the study for the community to become carbon neutral. 8.h. Consideration of Extension of the Contractor Services Agreement for Uniform Rental and Relatsd Services. Action: Approved a contract extension with AmeriPride UnNorm Services on a month-to- month basis, effective as of July 8, 2009. 8.i. Consideratlon to Authorize an Award of Bid for the Purchase of a Riding Mower. Actlon: 1) Authorized the award of bid for a riding mower to Turf Star of Hayward, CalHomia, in the amount of $53,291; and 2) Found that the bid from Coastal Tractor in the amount of $38,995 is non-responsive and reject the bid. 8.j. Consideratlon of Temporary Use Permit No. 09-009 to Authorize the Use of City Property and to Close City Streets for the Annual Arroyo Valley People's Choice Cruise Night on July 24, 2009 and Car Show on July 25, 2009. Ac on: Adopted Resolution No. 4198 as follows: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING TEMPORARY USE PERMIT 09.009; AUTHORIZING THE USE OF CITY PROPERTY AND TO CLOSE CITY STREETS FOR THE ANNUAL ARROYO VALLEY PEOPLE'S CHOICE CRUISE NIGHT ON JULY 24, 2009 AND CAR SHOW ON JULY 25, 2009': Minutes: Clty Council Meeting Page 3 Tuesday, June 23, 2009 8.k. Consideration of Increasing the Water Conservation Incentive Amount for the "Cash for Grass" Rebate Program. Action: Approved an increase in the water conservation incentive amount for the "Cash for Grass" program to .50 cents per square foot. 8.1. Consideration of Approval of Final Parcel Map AG 08-0078; Subdividing a 13,263 Square Foot Village Mixed Use Property into Four (4) Parcels and a Resolution Accepting Easements Located at 127 Nelson Street and 138 Short Street, Owned by Pruett Family Trust. Action: Approved Final Parcel Map AG 08-0078, subdividing a 13,263 square foot Village Mixed Use property into four (4) parcels and adopted Resolution No. 4199 as follows: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING FINAL PARCEL MAP AG 08-0078 AND ACCEPTING EASEMENTS, LOCATED AT 127 NELSON STREET AND 138 SHORT STREET OWNED BY THE PRUETT FAMILY TRUST'; 8. PUBLIC HEARINGS 9.a. Consideration of 2008 Water and Wastewater Financial Plan and Rate Study and Resolutions Establishing Water Rates, Sewer Rates, and Lopez Contract Charges. Director of Financial Services Kraetsch presented the staff report and recommended the Council: 1) Approve the 2009 Water and Wastewater Financial Plan and Rate Study; 2) Adopt a Resolution establishing new water rates effective July 1, 2009; 3) Adopt a Resolution establishing new sewer rates effective July 1, 2009; and 4) Adopt a Resolution establishing new Lopez contract charges effective July 1, 2009. Consultant Clayton Tu~eld, Tuckfield 8 Associates, reviewed the results of the 2009 Water and Wastewater Financial Plan and Rate Study. Staff responded to questions from Council regarding the County's capital improvement projects that impact costs for operation of the Lopez reservoir and treatment facility; staff's meeting with County representatives to review and reduce Lopez capital costs; that no debt financing is proposed; that the alternative rate structure would make Lopez operational and maintenance costs part of the overall water rate; and that the Lopez charges would be transitioned into the water rates over a 5- year period. Mayor Ferrara opened the public hearing. Mike Zoldak, Arroyo Grande resident, spoke in opposition of the proposed rate increases. Bill Hart, Bridge Street, expressed concern regarding the application of Lopez charges to businesses and asked for more equity in how they are charged. Richard Massev, Arroyo Grande resident, expressed concern about the high cost of the Lopez charge; stated he would like to have a better understanding of the project; and stated he did not understand the proposed cost structure. John Keen, N. Elm Street, commented that water rates should go up as the City is running out of water; and that there is a need to make citizens more aware of conservation efforts. Mike Zoldak, Arroyo Grande resident, asked why this issue was not on the ballot. Hearing no further comments, Mayor Ferrara closed the public hearing. Minutes: City Council Meeting Page 4 Tuesday, June 23, 2009 Council comments and discussion ensued concerning the proposed rates and rate structures; unk cost versus fixed cost; that variable costs give everyone an opportunity to control their water use and costs; that people who want to reduce their bill will reduce their water use; that the costs for the capital projects seem reasonable; that the City needs to establish a reserve fund in the Sewer Fund; that customers should review their bills and work with the City's staff to review available water conservation programs; acknowledgement of the protest letters received and a request that staff respond to any questions or concerns expressed; that a lot of the funds that are collected go to the County; that increases are needed to maintain and improve the City's water and sewer infrastructure; that the City is expecting a decrease in revenue Citywide; that staff has pursued methods with the County to reduce costs; support for phasing the Lopez costs into the water costs; and an explanation that only general and specific taxes require a vote on the ballot and that the proposed fees are subject to Proposition 218 which states that property related fees are subject to specific notficetion, protest, and hearing requirements. Additional comments inGuded a request that operation and maintenance costs be reviewed and brought bads to the Council in the future; that the City faces challenges in the future because of its low water supply; that the City met wkh the County to review the Lopez costs to ensure costs are related directly to the retrofit aril treatment plant projects and are not meant to supplement the County; and that the City would be diligent in monitoring these issues. Action: Council Member Guthrie moved to adopt a Resolution as follows: "A RESOLUTION OF THE C/TY COUNCIL OF THE CITY OF ARROYO GRANDE ESTABLISHING WATER RATES AND CHARGES". Council Member Fellows seconded, and the motion passed on the following roll- call vote: AYES: Guthrie, Fellows, Costello, Ferrara NOES: None ABSENT: Arnold Action: Council Member Guthrie moved to adopt a Resolution as follows: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ESTABLISHING SEWER RATES AND CHARGES". Council Member Fellows seconded, and the motion passed on the following roll- call vote: AYES: Guthrie, Fellows, Costello, Ferrara NOES: None ABSENT: Arnold Action: Council Member Guthrie moved to adopt a Resolution as follows: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ESTABLISHING THE AMOUNT OF LOPEZ CONTRACT CHARGES". Council Member Fellows seconded, and the motion passed on the following roll-call vote: AYES: Guthrie, Fellows, Costello, Ferrara NOES: None ABSENT: Arnold City Manager Adams spoke briefly about the "Cash for Grass° program which was approved tonight to increase the water conservation incentive amount to $0.50 cents per square foot. Minutes: City Council Meeting Page 5 Tuesday, June 23, 2009 10. CONTINUED BUSINESS ITEMS 10.a. Consideration of Consolidation of Fire Services. Fire Chief Hubert presented the staff report and recommended the Council: 1) Direct staff to proceed with the formation of the Fire Joint Powers Authority (JPA); 2) Designate the Fire Oversight Committee as the Interim JPA Board of Directors for the purposes of providing direction to labor negotiators to prepare a Memorandum of Understanding (MOU) with the firefighters' union; 3) Approve the Amended Joint Fire Management, Administrative, and Training Services and Equipment Sharing Agreement; and 4) Approve the Fire Personnel Cooperative Agreement. Staff responded to questions from Council concerning the proposed funding allocations; personnel and functional reporting structures and costs; and clarification that the Fire Oversight Committee would continue to serve as the directing body on an interim basis until the JPA is formed and a Board is created. Mayor Ferrara invited comments from those in the audience who wished to be heard on the matter. John Shoals, City of Grover Beach Mayor spoke in support of the efforts to continue improving fire delivery services and noted that the Grover Beach City Council had unanimously approved the amended Joint Fire Management, Administrative, and Training Services and Equipment Sharing Agreement at its recent meeting. PJ Ferguson, President of the International Association of Firefighters Local 4403, spoke in support of the recommendations. Matt Milhauser, President of the Five Cities Firefighters Association, spoke in support of the recommendations. Upon hearing no further public comments, Mayor Ferrara closed the public comment period. Coundl comments inducted support for proceeding with the formation of a Fire JPA; acknowledgement and thanks to staff and the firefighters for participation in the consolidation efforts to increase and improve training, standardization, and leadership; and that the JPA is a way for the three agencies to reach the highest efficiency in sharing resources and improving response times to better serve the citizens. Action: Mayor Pro Tem Costello moved to: 1) Direct staff to proceed with the formation of the Fire Joint Powers Authority (JPA); 2) Designate the Fire Oversight Committee as the Interim JPA Board of Directors for the purposes of providing direction to labor negotiators to prepare a Memorandum of Understanding (MOU) with the firefighters' union; 3) Approve the Amended Joint Fire Management, Administrative, and Training Services and Equipment Sharing Agreement; and 4) Approve the Fire Personnel Cooperative Agreement. Council Member Guthrie seconded, and the motion passed on the following roll-call vote: AYES: Costello, Guthrie, Fellows, Ferrara NOES: None ABSENT: Arnold 10.b. Consideration of City Hall Complex Facility and Property Upgrades. City Manager Adams introduced Mr. Fred Sweeney of Phillips, Metsch, Sweeney, Moore Architects. M/nutes: Cky Connell Meetlng Page 6 Tuesday, June 23, 2009 Mr. Sweeney gave a brief overview of the options and costs for Option #1 -ADA Remodel of the City Hall building; Option #1 B -ADA Remodel Plus; Option #2 -Complete Interior Remodel of City Hall; Option #3 -Converting City Hall Building to Councl Chambers; Option #4 -New 7,000 Square Foot Building; Option #5 -City Hall Annex at 111. S. Mason to house Community Development, Engineering, and Building Departments; and Option #6 -Alternate Minimum Project. City Manager Adams presented the staff report and recommended the Council: 1) Select Option 1 B as the preferred City Hall akemative and Option #5 involving improvements to the proposed City Hall Annex; 2) Direct the archkect to prepare final drawings and bid documents; 3) Authorize the expenditure of $94,000 for architectural services under the existing Agreement with Phillips Metsch Sweeney Moore Architects; 4) Direct staff to submit a final application for $1,130,000 in USDA Rural Development low-interest loan funding; and 5) Direct staff to work with the developer to present aRematives for development of 200 East Branch Street and the adjacent parking lot property. City Manager Adams responded to questions from Councl conceming the expenditure of $94,000 which he stated had already been approved and inGuded in the budget; the chances of receiving approval for the USDA loan; clarification that funding for other City projects would not be impacted by this proposal; and Garification conceming the number of staff positions relocating from Public Works to Community Development. Mayor Ferrara invited comments from those in the audience who wished to be heard on the matter. John Keen, N. Elm Street, expressed concerns with remodeling City Hall as shown in Options 1 and 1 B and spoke in favor of Option 3. He noted the City could sell the Council Chambers building for commercial use which would result in income and sales tax to the City. He acknowledged, however, that this was the most expensive option. Susan Flores, E. Branch Street, expressed concern about selling any City property; inquired about the cost to build the parking lot; noted the decrease in City staff and commented that the City was nearly buiR out. In response to a question by Council Member Fellows conceming Options 1 and 3, City Manager Adams explained that Option 3 had been considered originally. He explained that the disadvantage of Option 3 was the cost and that relocating all employees over to the 111 S. Mason Street building was studied and there were concerns about the ability for future expansion. Council Member Fellows referred to Option 1B without the Alternates. He acknowledged that the City needed to move forvward; that Option 1A meets the needs conservatively; he did not like some of the architectural features, including closing off the door at the existing Community Development entrance; did not support any changes to the original look of the City Hall building; stated he supported Options 1 or 1 B without the frills and supported Option 5 without the elevator; suggested staff look into a reduction in the term of the USDA loan from 40 years to 30 years or making principal payments when economic times are better. Council Member Guthrie referred to the original needs assessment; spoke about the existing operational square footage; noted that for the past 25 years there has not been public support for a new or remodeled City Hall; acknowledged and supported the need for ADA improvements; that the proposal(s) looked too good to be true; supported keeping the current City Hall and Public Works buildings and not buying the building at 111 S. Mason; stated he was not in favor of moving foniward with drawings; and suggested various alternatives for the use of the existing City buildings. Minutes: City Council Mewing Page 7 Tuesday, June 23, 2009 Mayor Pro Tem Costello noted that this was not an issue of space; that there were sign~caM ADA and structural issues and the need to consolidate staff. He stated the City would have to pay the price of deferred maintenance; that he was inclined to support Option #1 B while keeping open the Akematives as options; that he supported moving forward with Option #5; that the City has the opportunity to do these projects now at the least expense; that while he would love to see a new Council Chambers, the Akemative proposed is potentially cost prohibkrve. Mayor Ferrara supported Option #1 B; favored the proposed City Hall entrance; acknowledged the necessary ADA improvements and potential liability issues; recognized that the economy has forced a reduction of staff; that the City is trying to make the best of a bad situation; that the City does have room to grow because it has a Sphere of Influence and he expects staff to grow in the future as the economy recovers; that it is irresponsible not to take all these factors into consideration; that the options and variables can continue to be fine-tuned because the Counal is not making final decisions at this time; that he supported Option 1 B with the Akemafives as well as Option #5. He also referred to the Le Point Street Parking Lot project and noted that parking availabilky in the ~Ilage is desperately needed. Action: Mayor Pro Tem Costello moved to: 1) Select Option 16 as the preferred City Hall alternative and Option #5 involving improvements to the proposed City Hall Annex with the variation that the options remain as akemates for Option 1 B; 2) Direct the architect to prepare final drawings and bid documents; 3) Authorize the expenditure of $94,000 for architectural services under the existing Agreement wkh Phillips Metsch Sweeney Moore Architects; 4) Direct staff to submit a final application for $1,130,000 in USDA Rural Development low-interest loan funding; and 5) Direct staff to work with the developer to present akematives for development of 200 East Branch Street and the adjacent parking lot property. Mayor Ferrara seconded the motion. In response to concerns expressed by Council Member Fellows regarding the costs for the elevator and the various norrhistoric design frills, discussion ensued concerning Option #1 B and Option #5. Action: Mayor Pro Tem Costello amended his motion to: 1) Select Option 1 B as the preferred City Hall akemative and Option #5 involving improvements to the proposed Cky Hall Annex, as modified in Option 1 B that the frills (design enhancements to the outside of the building) be left as completely optional as bid akemates and not part of the base bid; and that in Option #5, the elevator would remain as an optional kern (bid alternate) and the fire sprinklers would remain; 2) Direct the architect to prepare final drawings and bid documents; 3) Authorize the expenditure of $94,000 for archtectural services under the existing Agreement wkh Phillips Metsch Sweeney Moore Architects; 4) Direct staff to submit a final application for $1,130,000 in USDA Rural Development low-interest loan funding; and 5) Direct staff to work with the developer to present akematives for development of 200 East Branch Street and the adjacent parking lot property. Following further concerns expressed by Council Member Fellows, City Manager Adams explained that these are non-essential kerns and can be identified in the design documents as bid alternates, and not included in the base bid. Wkh regard to the elevator in Option #5, Cky Manager explained that in order for City staff to fully utilize the second floor space, the elevator would be required under ADA regulations; however, he noted that this was also anon-essential kern ff staff did not utilize the second floor. City Manager Adams further clarified the issue concerning bid akemates versus bid deductives, and how the bid evaluation and process works. He explained that there would be a base bid for the project, and that the Council would have the flexibility and discretion to include any bid alternates. He stated that the recommended action included the Council selecting a preferred project alternative and directing the architect to prepare final drawings and bid documents. He noted that the project would come back to the Council for final consideration and action. Minutes: City Council Meeting Page 8 Tuesday, June 23, 2009 Mayor Ferrara seconded, and the motion passed on the following roll-call vote: AYES: Costello, Ferrara, Fellows NOES: Guthrie ABSENT: Amold Mayor Ferrara called a break at 10:14 p.m. The Council reconvened at 10:20 p.m. 11. NEW BUSINESS None. 12. CITY COUNCIL REPORTS a. MAYOR TONY FERRARA: (1) San Luis Obispo Council of Governments/San Luis Obispo Regional Transit Authority (SLOCOG/SLORTA). 1) Received bid to partner with SBCAG with some joint funding for the Santa Maria River Bridge and putting in a new 6-lane bridge and the Board voted to allocate funds; 2) Took action to send a letter to the Governor opposing any taking of the Highway User Tax (Gas Tax). (2) South San Luis Obispo County Sanitation District (SSLOCSD). Met last Wednesday; looked at capital improvements and major budget items and approved those items for FY 2009-10. (3) Brisco/HalcyoNHwy 101 Interchange Project Subcommittee. Have not heard back from CaRrans yet; may need to go to Sacramento; wrote letter requesting approval of the last alternative that was submitted or formally denying it so it can be appealed. (4) Recreation Center Subcommittee. Will meet on June 29'" at the Atascadero Colony Park Community Center for tour of the facility as a lot of the same amenities that have been discussed by the subcommittee. (5) Other. Headed to Sacramento tomorrow for a League of California Cities Public Safety Policy Committee meeting. b. MAYOR PRO TEM JOE COSTELLO: (1) Zone 3 Water Advisory Board. 1) No Quagga mussels have been found at Lopez Lake; 2) Still waiting to hear from the Federal agency about the Habitat Conservation Plan; and 3) County staff will be getting together to review the operations plant for the water treatment facility for potential improvements. (2) Air Pollution Control District (APCD). Discussion held on potential grants and grant process. (3) Fire Oversight Committee. Approved several measures tonight to move toward formation of a Fire Joint Powers Authority. (4) Other. None. c. COUNCIL MEMBER JIM GUTHRIE: (1) South County Area Transit (SCAT). Adopted the budget at the last meeting, which included sign cant loss of State funding; then; will be some slight reduction in evening service and a fare increase to $1.25. (2) Community Action Partnership (Economic Opportunity Commission). Received loan for a building which will reduce their costs Minutes: CHy Councll MeeSng Tuesday, June 23, 2009 Page 9 (3) California Joint Powers Insurance Authority (CJPIA). Continues to be a very effective organization; reviewed reports; City has not experienced any financial loss. (4) SLO County 10-Year Plan to End Homelessness Leadership Council. Plan is to come up with a two year position which would be an outside contractor directed by the County and would work with all the organizations to find grant funds. County will be the principal contributor. (5) Tourism Committee. An outside agency, Barnett & Cox, has been retained to create a branding logo. Other. Hone. d. COUNCIL MEMBER ED ARNOLD: (ABSENT) (1) integrated Waste Management AuthoHty Board (IWMA). (2) Economic Vitality Corporation (EVC). (3) Other. e. MAYOR PRO TEM CHUCK FELLOWS: (1) South County Youth Coalition. No report. (2) County Water Resources Advisory Committee (WRAC). 1) Signed up on an email list to receive Quagga mussel notfications and updates directly; 2) Percentage of annual precipitation is 50% this year at Lopez Lake; 3) Capacity of lake in April 2009 was at 59°r6 versus 75% in April 2008. (3) Other. 1) Attended the IWMA meeting as the Alternate; discussed cities that are passing Ordinances banning plastic bags and then are getting sued by special interest groups based on CEQA issues; 2) San Luis Obispo are starting to use split waste containers and suggested the City consider the same; and 3) Will be attending the next IWMA as the Alternate. 13. CITY COUNCIL MEMBER ITEMS: 13.a. Council Member Guthrie requested, and the Council concurred, to direct staff to place on a future agenda an update of the Phase II Newsom Springs Drainage Project. 14. CITY MANAGER ITEMS: None. 15. COUNCIL COMMUNICATIONS: Council Member Fellows referred to Heritage Square Park, noted that the watering of the parkways is extending onto the curbs and sidewalks, and requested that staff look into the matter. 16. STAFF COMMUNICATIONS: None. 17. COMMUNITY COMMENTS AND SUGGESTIONS: None. 18. ADJOURNMENT Mayor Ferrara adjourned the meeting at 10:40 p.m. M/nates: C/fy Council Meeting Tuesday, Jane 2~, ?009 Tony a or ATTEST: ~1.~ ~lR- Kely W tm ,City Clerk (Approved at CCMtg 7-a$-o1o0~- 1 Page 10