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Minutes 2009-09-08 MINUTES REGULAR MEETING OF THE CITY COUNCIL TUESDAY, SEPTEMBER 8, 2009 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. CALL TO ORDER Mayor Ferrara called the Regular City Council meeting to order at 7:10 p.m. 2. ROLL CALL City Council: Council Members Jim Guthrie, Ed Arnold, and Chuck Fellows, Mayor Pro Tem Joe Costello, and Mayor Tony Ferrara were present. City Staff Present: City Manager Steven Adams, City Attorney Tim Carmel, Director of Legislative and Information Services /City Clerk Kelly Wetmore, Director of Administrative Services Angela Kraetsch, Chief of Police Steve Annibali, and Director of Community Development Teresa McClish. 3. FLAG SALUTE Members of Cub Scout Pack 13, Den 1, led the Flag Salute. 4. INVOCATION Rabbi Scott Corngold, Congregation Beth David, delivered the invocation. 5. SPECIAL PRESENTATIONS None. 6. AGENDA REVIEW 6.a. Ordinances Read in Title Only. Council Member Fellows moved, Mayor Pro Tem Costello seconded, and the motion passed unanimously that all ordinances presented at the meeting shall be read in title only and all further reading be waived. 7. CITIZENS' INPUT, COMMENTS, AND SUGGESTIONS Bob Lund, Executive Director of the Village Improvement Association (VIA) and Arroyo Grande In .Bloom (AGIB) Coordinator, thanked the City Council and staff for the East Branch Street improvements and spoke in appreciation of the enhancements to the Village. He also spoke about the AIB volunteer program; announced that the City would be competing in eight evaluation categories for the third year in the national America In Bloom competition; that several members of the AGIB Committee would be attending the America In Bloom Symposium and Awards Ceremony in October in Hershey, Pennsylvania; and concluded by expressing pride for all the City's accomplishments. Mark Shafer, CEO and Founder of Funride, spoke about a new carsharing program that offers alternative fuel cars to commuters, business and government, visitors, developers, and neighborhoods as an economic option to traditional car pooling. He announced that he has started this business in the City of San Luis Obispo and will be expanding into other cities. He invited the public to visit Funride's website at www.myfunride.com for more information. Minutes: City Council Meeting Page 2 Tuesday, September 8, 2009 Whitney, representing the Environmental Center of San Luis Obispo County (ECOSLO), spoke about Coastal Clean Up Day to be held on September 19, 2009 from 8:00 to 12:00 p.m. and invited the Council and members of the public to participate. She referred to ECOSLO's website, www.ecoslo.org for more information. 8. CONSENT AGENDA Mayor Ferrara invited members of the public who wished to comment on any Consent Agenda Item to do so at this time. There were no public comments received. Action: Mayor Pro Tem Costello moved, and Council Member Arnold seconded the motion to approve Consent Agenda Items 8.a. through 8.e., with the recommended courses of action. The motion passed on the following roll -call vote: AYES: Costello, Arnold, Guthrie, Fellows, Ferrara NOES: None ABSENT: None 8.a. Cash Disbursement Ratification. Action: Ratified the listing of cash disbursements for the period August 16, 2009 through August 31, 2009. 8.b. Consideration of Approval of Minutes. Action: Approved the minutes of the Special City Council Meeting of August 11, 2009; the Regular City Council /Redevelopment Agency Meeting of August 11, 2009; and the Regular City Council Meeting of August 25, 2009, as submitted. 8.c. Consideration of Council Appointment to Parks and Recreation Commission. Action: Approved the recommendation of Council Member Chuck Fellows to appoint Elisabeth Sperow to the Parks and Recreation Commission. 8.d. Consideration of Acceptance of the City -Wide Asphalt Repair Project, PW 2009 -03. Action: 1) Accepted the project improvements as constructed by Crandall Construction in accordance with the plans and specifications for the City -Wide Asphalt Repair Project; 2) Directed staff to file a Notice of Completion; and 3) Authorized release of the retention, thirty -five (35) days after the Notice of Completion has been recorded, if no liens have been filed. 8.e. Consideration of Car Corral Upgrade Project. Action: Approved the Car Corral Upgrade Project which includes repair and reconfiguration of the public parking lot located at East Branch Street and Nevada Street, including plans and specifications. 9. PUBLIC HEARINGS None. 10. CONTINUED BUSINESS ITEMS 10.a. Consideration of Update and Results of Water Studies and Alternatives. City Manager Adams provided a history of the various water studies that have been conducted and provided information on the implementation and /or study of the following options currently Minutes: City Council Meeting Page 3 Tuesday, September 8, 2009 underway to provide or identify additional water supply sources, including: water conservation programs, groundwater /well sources, the Nacimiento water project, State water, purchase of Oceano Community Services District water, the Lopez Reservoir Expansion Spillway Raise project; Recycled Water, and Desalination. He recommended the Council: 1) Consider the results of water studies that have been completed; 2) Appropriate $40,000 from the Water Availability Fund for the next phase of study on raising the spillway at the Lopez Lake Dam and authorize the City Manager to execute an agreement for the City's participation in the study; and 3) Appropriate $20,000 from the Water Neutralization Fund for consultant services to determine the costs of extending a recycled water pipeline from the City of Pismo Beach proposed recycled water system to potentially serve Arroyo Grande users. Steve Tanaka of The Wallace Group, presented further detail on the Recycled Water and Desalination project options to augment the City's water supply. He noted that the Desalination study began in 2006; reviewed the components of the study and proposed location of the plant; provided an aerial view of the site as it relates to ocean proximity, seawater intake and supply; provided an aerial view of the existing South San Luis Obispo County Sanitation District plant site showing available open space for a desalination plant; discussed basic desalination process and distribution system; and reviewed environmental and permit constraints, costs, and implementation timeline. Mr. Tanaka and City Manager Adams then responded to questions regarding meaning and importance of growth inducing impacts related to supplemental water projects; State housing requirements; sphere of influence issues; current housing legislation; concerns about ocean habitat; concerns related to raising the spillway at Lopez Dam; concerns about the status of the Arroyo Grande Creek Habitat Conservation Plan; whether solar power was considered for the desalination plant; and whether there had been any progress on reactivating Well No. 11. Mr. Tanaka proceeded with his presentation and provided an update on Recycling Water projects; discussed project issues; alternatives considered; potential wastewater treatment plant upgrades; costs for each upgrade project; funding opportunities; other considerations (pros and cons); and future considerations to augment the City's water supply. He then responded to questions regarding Orange County's recycled /reclaimed water project; injection wells; whether current effluent from the Sanitation District could be used at the Arroyo Grande Cemetery and on CalTrans right -of -way for turf irrigation; and whether the recycled water study addressed removal of pharmaceuticals and chlorides. Mayor Ferrara invited comments from those in the audience who wished to be heard on the matter, and upon hearing none, he closed the public comment period. Council Member Guthrie referred to the Desalination plant option, believed that there are more regulatory hurdles involved with the Coastal Commission and noted the difficulty of developing this project; however, he supported a Desalination plant as part of a long -term solution; commented on the Pismo Beach proposed recycled water system and related tertiary treatment requirements; suggested as a short-term alternative to review the cost of delivering the current effluent to the cemetery and the freeway landscape areas through a pipeline that would come down the levee road from the treatment plant and down Halcyon Road; referred to the ConocoPhillips pipelines running down Halcyon, only one of which is being used, and the possibility of acquiring or leasing that pipe for this use; stated this suggestion was worth as much study as the Pismo project; expressed concern with the Pismo project due to involvement with Caltrans, however, he was prepared to approve the $20,000 to study the Pismo project; supported looking further at raising Minutes: City Council Meeting Page 4 Tuesday, September 8, 2009 the Lopez Dam spillway; and supported looking at the cost of a study for the injection well in order to achieve a long term plan. Council Member Arnold discussed the State water option and associated capital costs versus the option that Council Member Guthrie discussed, and stated the City is better off looking at options that the City has some control over; expressed concern with raising the dam at Lopez due to numerous unknown factors and that the City may not see much water coming this way; could support it if that was the will of the Council although he did not see this as a very good solution; was inclined to support the Pismo Recycled Water project until hearing Council Member Guthrie's comments, however, he expressed concern about spending money for a study that does not appear to be an immediate solution and he is more inclined to support the Sanitation District recycled water project; and concluded by stating he could support moving forward with studying the recycled water project more than the other options, however he would support the will of the Council. Council Member Fellows agreed with comments regarding raising of the spillway and expressed concern that when it does rain again, if there is a higher capacity for the lake, it will weigh more and could generate a need for seismic studies to determine if the dam could hold the water; stated that the studies could be beneficial to provide additional information that may be needed later on in order to make a decision; was concerned by inaction on the Habitat Conservation Plan; supported appropriating $20,000 to study the Pismo recycled water project; stated he was encouraged by the fact that the City is saving some water due to conservation efforts, and that focus needs to continue on comprehensive long term conservation strategies and efforts. Mayor Pro Tem Costello stated the City should continue to fund the $40,000 study on raising the spillway, as the information is valuable; supported appropriating $20,000 to study the water recycling pipeline from Pismo; and stated that in the interim, the City should be focusing on recycled water use due to State mandates. City Manager Adams referred to Council Member Guthrie's suggestion to study the ability of bringing existing recycled water from the treatment plant, through existing pipelines not in use, to the cemetery and Caltrans landscape areas. He recommended an additional $7,500 appropriation to include this option into the study. Mayor Pro Tem Costello agreed that this would be a valuable part of the study and he could support that recommendation. In response to a question by Mayor Ferrara regarding the justification for prioritizing the Pismo recycled water project over the City's ability to do reclaimed water from its own treatment plant, City Manager Adams addressed cost issues and efficiencies; installation of pipeline and associated impacts to City streets; and that the Pismo option may be easier to achieve for a smaller amount of users. Mayor Ferrara supported staff's recommendations; expressed some reservations similar to those expressed by the Council tonight; referred to the Desalination Study and stated he would not support moving forward with this option at this time; referred to a map of an open space located at the existing treatment plant which could be used for water reclamation; placed emphasis on the Minutes: City Council Meeting Page 5 Tuesday, September 8, 2009 City's ability to do water reclamation; referred to the issue of the existing pipeline which may have been abandoned and suggested it could be a viable solution for the conveyance of reclaimed water; observed that Caltrans District 5 has a median plan in progress which would remove all the vegetation out and replace it with concrete /asphalt; stated that if the City has committed to $20,000 for the Pismo recycled water study he could support that, however he would rather use the funds to study reclaimed water; expressed concern about the issue of raising the spillway at the Lopez Dam, however, he could support further study with a narrower scope of work. City Manager Adams explained that the cost for additional study had been reduced from $125,000 to $40,000; and explained that the cost is based on the allocation of water the City receives, which is about half. He clarified that the City would receive approximately half of the new water allocation through this method. Mayor Ferrara recommended prioritizing the scope of work to try and make as early as determination as possible about cost benefit and feasibility of increasing the City's water supply. Further discussion ensued about the spillway project due to concerns about lack of approval of the Habitat Conservation Plan (HCP) and the need to obtain further information prior to committing more funds to study this particular option. City Manager Adams explained that some of the initial study was supposed to address this issue. He acknowledged that the other two cities are interested in pursuing further study of this option and he would support the Council's direction on the matter. He recommended the Council direct staff to go back to the other cities and authorize $25,000 to study the cost benefit and feasibility prior to committing to a higher cost study to review the project in more detail. Action: Council Member Guthrie moved to: 1) appropriate $27,500 from the Water Neutralization Fund to determine potential for connecting to Pismo Beach's recycled water pipeline and also look at what it would cost the City to install a pipeline from the South County treatment plant for transporting water through existing unused pipelines in the City; and 2) appropriate $25,000 to conduct a preliminary study on raising the Lopez Lake Dam spillway to determine whether water from the spillway could be used regardless of the status of the HCP and whether the project would trigger a seismic study. Council Member Fellows seconded, and the motion passed on the following roll call vote: AYES: Guthrie, Fellows, Arnold, Costello, Ferrara NOES: None ABSENT: None Mayor Ferrara called a break at 9:10 p.m. The Council reconvened at 9:20 p.m. 11. NEW BUSINESS ITEMS 11.a. Consideration of Temporary Modifications to Affordable Housing Agreement Provisions. City Manager Adams presented the staff report and recommended the Council approve a Resolution authorizing the City Manager to amend existing affordable housing agreements for the Minutes: City Council Meeting Page 6 Tuesday, September 8, 2009 next two -year period consistent with the recommended terms and conditions. He responded to questions from Council relating to retention of the City's affordable housing inventory and whether the affordable units would retain their deed restriction. Mr. Jerry Rioux, representing the Housing Trust Fund, was also in attendance to answer questions. Mayor Ferrara invited comments from those in the audience who wished to be heard on the matter, and upon hearing none, he closed the public comment period. Council comments ensued in support of the proposal; that it was appropriate during these difficult economic times; that the proposed modifications would minimize or eliminate a financial loss; that the City should consider these modifications as an ongoing policy; and a request that staff prepare a one -page summary in the form of a letter to San Luis Obispo Council of Governments (SLOCOG) to keep them informed of this matter. Action: Mayor Pro Tem Costello moved to adopt "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE TEMPORARILY AUTHORIZING THE CITY MANAGER TO AMEND AFFORDABLE HOUSING AGREEMENTS UNDER SPECIFIED CIRCUMSTANCES". Council Member Arnold seconded, and the motion passed on the following roll call vote: AYES: Costello, Arnold, Fellows, Guthrie, Ferrara NOES: None ABSENT: None 11.b. Consideration of an Ordinance Establishing a Fortune Telling Permitting Process. Chief Annibali presented the staff report and recommended the Council introduce an ordinance establishing a fortune telling permitting application process. Mayor Ferrara invited comments from those in the audience who wished to be heard on the matter, and upon hearing none, he closed the public comment period. Action: Council Member Fellows moved to introduce an Ordinance as follows: "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ADDING CHAPTER 5.80 TO THE ARROYO GRANDE MUNICIPAL CODE REGARDING FORTUNE TELLING AND RELATED PRACTICES Council Member Arnold seconded, and the motion passed on the following roll call vote: AYES: Fellows, Arnold, Guthrie, Costello, Ferrara NOES: None ABSENT: None 12. CITY COUNCIL MEMBER ITEMS None. 13. CITY MANAGER ITEMS None. Minutes: City Council Meeting Page 7 Tuesday, September 8, 2009 14. COUNCIL COMMUNICATIONS Mayor Ferrara announced that the Chamber of Commerce was planning another Fireside Chat in early December with the City Council on either December 2" or 3rd. 15. STAFF COMMUNICATIONS City Manager Adams updated the Council on staffs preparedness efforts and policies being implemented relating to the H1 N1 Virus /Swine Flu. 16. COMMUNITY COMMENTS AND SUGGESTIONS None. 17. ADJOURNMENT Mayor Ferrara adjourned the meeting at 9:50 p.m. 'I Tony Ferrara r ATTEST: 0 it/I/WAX 0 fi /I AX Kelly We ore ity Clerk (Approved at CC Mtg 6 /4 2