Minutes 2018-06-12 ACTION MINUTES
REGULAR MEETING OF THE CITY COUNCIL
TUESDAY, JUNE 12, 2018
COUNCIL CHAMBERS, 215 E. BRANCH STREET
ARROYO GRANDE, CALIFORNIA
1. CALL TO ORDER
Mayor Hill called the City Council Meeting to order at 6:05 p.m.
2. ROLL CALL
City Council: Council Members Barbara Harmon, Kristen Barneich and Tim Brown,
Mayor Pro Tern Ray, and Mayor Hill were present.
Staff Present: City Manager Jim Bergman, City Attorney Heather Whitham, Director of
Legislative and Information Services/City Clerk Kelly Wetmore, Director of
Administrative Services Debbie Malicoat, Director of Public Works Bill
Robeson, Interim Director of Recreation Services, Chief of Police Beau
Pryor, Director of Community Development Teresa McClish, Associate
Planner Kelly Heffernon, and Planning Manager Matt Downing
3. MOMENT OF REFLECTION
4. FLAG SALUTE
Billy Mitchell, representing South County Presenters Toastmasters, led the Flag Salute.
5. AGENDA REVIEW
Following a brief discussion regarding the order of agenda items, Council Member Harmon moved
to move Item 12.a. up on the Agenda following consideration of the Consent Agenda. Council
Member Brown seconded, and the motion passed unanimously by voice vote.
5.a. Closed Session Announcements.
None.
5.b. Ordinances Read in Title Only.
Council Member Brown moved, Council Member Barneich seconded, and the motion passed
unanimously that all ordinances presented at the meeting shall be read by title only and all further
readings be waived.
6. SPECIAL PRESENTATIONS
None.
7. COMMUNITY COMMENTS AND SUGGESTIONS
Mayor Hill invited public comment. Speaking from the public were Patty Welsh, Arroyo Grande,
expressing concerns regarding impacts to the Miner's Hardware parking lot during the Strawberry
Festival, concerns regarding traffic on Huasna Road, and requested that law enforcement do
something about the traffic hazards; Todd Mitchell, Grover Beach, stated he is part of the
Spectrum Center using Camp Arroyo Grande and stated they were happy to be back; Fran Askins,
Arroyo Grande, referred to the proposed project on East Cherry Avenue and expressed opposition
to opening up Launa Lane for emergency access; and Coleen Tooley, expressed opposition and
concerns with the proposed project on East Cherry Avenue with regard to traffic and water. No
further comments were received.
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Tuesday, June 12, 2018
8. CITY MANAGER/DIRECTOR REPORTS
There were no reports.
9. CONSENT AGENDA
In response to questions by Council Member Barneich regarding the Grace Lane Assessment
District(Item 9.g.) as it relates to the large fund balance, Director of Public Works Robeson stated
that there are a number of large capital projects that are managed within the District, including
maintenance every five years of the long driveway to the affordable housing units, maintenance
of the large open space area, and annual weed abatement. Public Works Director Robeson noted
that annual weed abatement generally takes place in May; however, a contract is currently being
negotiated and weed abatement is anticipated to take place in June or July.
Mayor Hill invited public comment on the consent agenda items. No public comments were
received.
Action: Council Member Barneich moved, and Council Member Brown seconded the motion to
approve Consent Agenda Items 9.a. through 9.j., with the recommended courses of action. The
motion passed on the following roll-call vote:
AYES: Barneich, Brown, Harmon, Ray, Hill
NOES:None
ABSENT: None
9.a. Consideration of Cash Disbursement Ratification.
Action: Ratified the listing of cash disbursements for the period May 16, 2018 through
May 31, 2018.
9.b. Consideration of Fiscal Year 2018-19 Appropriation Limit.
Action: Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ARROYO GRANDE ADOPTING A TAX PROCEEDS EXPENDITURE
APPROPRIATION LIMIT FOR FISCAL YEAR 2018-19".
9.c. Consideration of Approval of Minutes.
Action: Approved the minutes of the Regular City Council Meeting of May 22, 2018 and
the Special City Council Meeting of May 29, 2018, as submitted.
9.d. Consideration of Amendment No. 1 to Agreement for Consultant Services with
Arroyo Grande & Grover Beach Chamber of Commerce.
Action: Approved and authorized the Mayor to execute Amendment No. 1 to the
Agreement for Consultant Services with the Arroyo Grande & Grover Beach Chamber of
Commerce for administration of the Arroyo Grande Tourism Business Improvement
District.
9.e. Consideration of Resolutions for the 2018 General Municipal Election for the
Election of Certain Officers of the City.
Action: 1)Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ARROYO GRANDE, CALIFORNIA, CALLING AND GIVING NOTICE OF
THE HOLDING OFA GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY,
NOVEMBER 6, 2018, FOR THE ELECTION OF CERTAIN OFFICERS AS REQUIRED
BY THE PROVISIONS OF THE LAWS OF THE STATE OF CALIFORNIA RELATING
TO GENERAL LAW CITIES"; 2) Adopted a Resolution entitled: "A RESOLUTION OF
THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE, CALIFORNIA,
REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN LUIS
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Tuesday, June 12, 2018
OBISPO TO CONSOLIDATE A GENERAL MUNICIPAL ELECTION TO BE HELD ON
TUESDAY, NOVEMBER 6, 2018, WITH THE STATEWIDE GENERAL ELECTION TO
BE HELD ON THE SAME DATE PURSUANT TO SECTION 10403 OF THE ELECTIONS
CODE"; and 3) Adopted a Resolution entitled: "A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF ARROYO GRANDE ADOPTING REGULATIONS FOR
CANDIDATES FOR ELECTIVE OFFICE PERTAINING TO CANDIDATES
STATEMENTS SUBMITTED TO THE VOTERS AT AN ELECTION TO BE HELD ON
TUESDAY, NOVEMBER 6, 2018".
9.f. Consideration of Resolution Declaring Surplus Property.
Action: Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ARROYO GRANDE DECLARING AN EXISTING MILITARY
GENERATOR MOUNTED ON A UTILITY TRAILER AS SURPLUS PROPERTY AND
AUTHORIZING ITS TRANSFER TO THE ALLAN HANCOCK COLLEGE POLICE
ACADEMY".
9.g. Consideration of Approval of Engineer's Reports and Adoption of Resolutions
Declaring the City's Intention to Levy and Collect Assessments for the Parkside
Village Assessment District, Grace Lane Assessment District and Landscaping and
Lighting District No. 1,within Tract 1769, for Fiscal Year 2018-2019.
Action: 1)Approved the Engineers' Reports for the Parkside Village Assessment District,
Grace Lane Assessment District, and Landscaping and Lighting Assessment District No.
1, within Tract 1769, for Fiscal Year 2018-2019; 2) Adopted Resolutions entitled: "A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE
DECLARING ITS INTENTION TO LEVY AND COLLECT ANNUAL ASSESSMENTS
RELATED TO THE PARKSIDE VILLAGE ASSESSMENT DISTRICT FOR FISCAL
YEAR 2018-2019"; "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE DECLARING ITS INTENTION TO LEVY AND COLLECT ANNUAL
ASSESSMENTS RELATED TO THE GRACE LANE ASSESSMENT DISTRICT FOR
FISCAL YEAR 2018-2019"; "A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ARROYO GRANDE DECLARING ITS INTENTION TO LEVY AND COLLECT
ANNUAL ASSESSMENTS RELATED TO THE ARROYO GRANDE LANDSCAPING
AND LIGHTING ASSESSMENT DISTRICT NO. 1, WITHIN TRACT 1769, FOR FISCAL
YEAR 2018-2019"; and 3) Set a public hearing for June 26, 2018 at 6:00 p.m. for the
Parkside Village Assessment District, Grace Lane Assessment District, and Landscaping
and Lighting Assessment District No. 1, within Tract 1769.
9.h. Consideration of an Award of Contract to G. Sosa Construction, Inc. for
Construction of the 2018 Concrete Repairs Project, PW 2018-03.
Action: 1) Awarded a contract for the 2018 Concrete Repairs Project to G. Sosa
Construction, Inc. in the amount of $128,900; and 2) Authorized the City Manager to
approve change orders for 10% of the contract amount, $12,890 for unanticipated costs
during the construction phase of the project.
9.i. Consideration of an Award of Contract to V. Lopez Jr. & Sons G.E.C., Inc. for
Construction of the 2018 Street Repairs Project, PW 2018-04.
Action: 1)Awarded a contract for the 2018 Street Repairs Project to V. Lopez Jr. & Sons,
G.E.C., Inc. in the amount of$705,350.90; and 2)Authorized the City Manager to approve
change orders for 10% of the contract amount, $70,535.09 for unanticipated costs during
the construction phase of the project.
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Tuesday, June 12, 2018
9.j. Consideration of Agreement of Lease Renewal for Portion of Car Corral Public
Parking Lot Located Between 103 and 109 E. Branch Street for an Additional Five-
Year Term from August 1, 2018 to July 31, 2023.
Action: 1) Approved the Agreement of Lease ("lease") with The David Family Trust,
Nancy T. Loomis Revocable Living Trust, and the Matthews Children's 1997
Irrevocable Trust; and 2) Authorized the Mayor to execute the lease on behalf of the
City.
The next agenda item was heard out of order.
12. NEW BUSINESS
12.a. Consideration of Options Relating to Amending the Arroyo Grande Municipal Code
Regarding the City Licensing of Cannabis Delivery Services.
City Manager Bergman presented the staff report and recommended the Council: 1) Provide
direction related to the City Council's intent to prohibit all commercial cannabis activities in the
City other than delivery from businesses that have a legally established premises located outside
of the City Limits; and 2) Provide staff direction to amend Chapter 16.62 of the Arroyo Grande
Municipal Code (AGMC) and repeal the City's Cannabis Delivery Service licensing provisions in
AGMC Chapter 5.95 of Title 5, so that any State licensed cannabis retailer with its physical
premises located outside of the City can deliver cannabis into the City. Staff responded to
questions from Council.
Cynthia Gonzales and Tami Peluso, representing Elite Care, responded to questions from
Council.
Mayor Hill invited public comment. Speaking from the public were: Teresa Mangano, in support
of Elite Care, explained that her mother has cancer and that alternative methods have helped
keep her mom pain free and stated that delivery service is needed in this area; LeAnn, in support
of Elite Care and about the cannabis industry; Speaker(no name provided), commented that this
is a confusing and complicated issue and stated there is no simple way to harmonize the City
ordinance with State regulations, and encouraged the Council to the extent possible to find a way
to resolve the issue; Tony Batista, Arroyo Grande, in support of medical cannabis and Elite Care
delivery services; Carmen Velasco, in support of Elite Care and the quality delivery services they
provide; Robert Olson, acknowledged that the Council is not wanting to deny Elite Care the ability
to deliver, stated that the issue is where to store the product, and opposed a commercial location
in the City expressing concern about the potential for increased crime; Devin Ward, ALS patient,
spoke about his need for medical cannabis delivery for his treatment; Charlie Doster, in support
of medical cannabis and Elite Care, his experience as a business owner in the City, and
suggested that the Council consider an urgency ordinance to continue allowing delivery services;
Todd Mitchell, in support of medical cannabis and Elite Care's delivery services, and encouraged
the Council to approve alternative 3 to amend the City's Municipal Code to allow non-storefront
cannabis retailers to locate their physical premises in the City; Jessica, Arroyo Grande, spoke
about the benefits of medical cannabis and cannabis delivery services; Heidi Seastrand, in
support of Elite Care and medicinal cannabis delivery services; Adam Laurent, in support of
alternative 3 to allow non-storefront cannabis retailers to locate in the City, provided background
information on what other cities have done, and suggested the Council look at an urgency
ordinance; Ginger Johnson, asked the Council to reconsider revocation of Elite Care's delivery
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Tuesday, June 12, 2018
permit; Patricia Price, commented that she would hate to lose this resource for medicinal cannabis
delivery and spoke in support of Elite Care; Cynthia Gonzalez, Elite Care, stated she is a medical
cannabis patient, commented on why her business has been put on pause due to changes in
State regulations, urged the Council to allow them to execute their business plan to serve the
residents in Arroyo Grande and supported alternative #3; Tami Peluso, Elite Care, stated that
there is a need for further education with regard to State regulations and urged the Council to
think of the patients and supported alternative#3. No further public comments were received.
Action: Council Member Ray stated she would like to see Elite Care continue to be able to
continue operating temporarily and moved to develop an urgency ordinance that lasts through
December 31, 2018, and along with that, she would like an advisory vote on the ballot in
November with three things: 1) Does the City want premises for cannabis; 2) Does the City want
more than that, such as retail stores, and 3) Does the City want to tax it. Mayor Hill seconded the
motion.
Brief discussion ensued. City Attorney Whitham stated that the State has revoked Elite Care's
license and the only way the State would reissue the license would be if the City authorized Elite
Care to conduct commercial cannabis activity from the requested location or any other location in
the City. She explained that commercial cannabis activity is prohibited under the City's Ordinance.
With regard to passing an urgency ordinance, she explained that the Council has to make findings
that the ordinance is necessary for the immediate preservation of the public peace, health, or
safety, include a declaration of the facts that constitute that emergency, and must be passed by
a 4/5 vote of the Council. She stated if the urgency ordinance were challenged, she did not know
if there were a true emergency in this case as there are other avenues for patients to receive their
medication. Following additional Council comments, the motion failed on the following roll-call
vote:
AYES: Ray, Hill
NOES: Brown, Barneich, Harmon
ABSENT: None
Action: Council Member Barneich moved to maintain the prohibition on all commercial cannabis
activity, but modify the Arroyo Grande Municipal Code to instead rely on the new State licensing
and delivery regulations as they relate only to delivery services and to bring that language back
to Council. Council Member Brown seconded, and the motion passed on the following roll-call
vote:
AYES: Barneich, Brown, Harmon
NOES: Ray, Hill
ABSENT: None
Mayor Hill called for a break at 9:58 p.m. The Council reconvened at 10:07 p.m.
10. PUBLIC HEARINGS
10.a. Consideration of Appeal Case No. 18-001; Appeal of Determination Relating to
Conditional Use Permit 18-001; Construction of a 1,784 Square Foot Accessory
Dwelling Unit in the General Agricultural Zoning District; Location - 1212 Flora
Road; Applicant— Murat& Nancy Akalin; Architect— Bill Isaman, Isaman Design.
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Tuesday, June 12, 2018
Director of Community Development McClish provided introductory comments. Planning Manager
Downing presented the staff report and stated the Planning Commission recommended the City
Council adopt a Resolution denying Appeal Case No. 18-001 and upholding its denial of
Conditional Use Permit 18-001. Staff responded to questions from Council.
Murat Akalin, applicant/appellant, provided a presentation of the amended project and spoke in
support of findings to approve the project.
Mayor Hill opened the public hearing. Speaking from the public was: Vivian Krug-Cotton, stated
she originally opposed the project, but after the applicant agreed to modify the location, she is
now in support of the project; Speaker (did not state name), spoke in support of the project.
Hearing no further public comments, Mayor Hill closed the public hearing.
Action: Council Member Ray moved to adopt a Resolution entitled: "A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING APPEAL CASE NO. 18-
001 AND APPROVING CONDITIONAL USE PERMIT 18-001; LOCATED AT 1212 FLORA
ROAD; APPLIED FOR BY MURAT 8 NANCY AKALIN", and further, to add wording to the
Resolution that the Council approves the project "as revised and presented to the City Council on
June 12, 2018 as set forth in Exhibit B". Council Member Barneich seconded, and the motion
passed on the following roll-call vote:
AYES: Ray, Barneich, Brown, Harmon, Hill
NOES: None
ABSENT: None
At 11:00 p.m., pursuant to Council policy, Council Member Barneich moved to continue the
meeting past 11:00 p.m. to 11:30 p.m., Mayor Pro Tem Ray seconded, and the motion passed
unanimously by voice vote.
Mayor Hill requested, and the Council concurred, to move Item 11.b. up on the agenda to
accommodate the consultants that were present to provide presentations.
11. OLD BUSINESS
11.b. Consideration of Proposals for Tourism Marketing Services, Selection of a
Marketing Firm, and Approval of an Agreement for Consultant Services.
Recommended Action: 1) Review proposals received from Catalyst Marketing Company
and Verdin Marketing for AGTBID marketing services; 2) Select a marketing firm; and 3)
Authorize the City Manager to enter into an Agreement for Consultant Services in an
amount not to exceed $165,000 in a form approved by the City Attorney.
City Manager Bergman provided introductory comments and introduced Jocelyn Brennan,
President/CEO, Arroyo Grande Chamber of Commerce.
Ms. Brennan introduced Vern Crow and the marketing team from Catalyst Marketing who
presented their proposal and responded to questions from Council.
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Tuesday, June 12, 2018
At 11:30 p.m., pursuant to Council policy, Council Member Barneich moved to continue the
meeting until 12:00 a.m. Mayor Pro Tern Ray seconded, and the motion passed unanimously by
voice vote.
Ms. Brennan introduced Mary Verdin and the marketing team from Verdin Marketing who
presented their proposal and responded to questions from Council.
Mayor Hill invited public comment. No public comments were received.
Action: Council Member Ray moved to select Verdin Marketing as the tourism marketing services
firm for the Arroyo Grande Tourism Business Improvement District. Council Member Brown
seconded, and the motion passed on the following roll-call vote:
AYES: Ray, Brown, Barneich, Harmon, Hill
NOES: None
ABSENT: None
Action: Council Member Harmon moved to authorize the City Manager to enter into an
Agreement for Consultant Services in an amount not to exceed $165,000 in a form approved by
the City Attorney. Council Member Barneich seconded, and the motion passed on the following
roll-call vote:
AYES: Harmon, Barneich, Brown, Ray, Hill
NOES: None
ABSENT: None
At 12:00 a.m., pursuant to Council policy, Council Member Barneich moved to continue the
meeting until 12:10 a.m. Council Member Harmon seconded, and the motion passed
unanimously by voice vote.
11.a. Consideration of Fiscal Year 2018-19 and 2019-20 Biennial Budget.
Director of Administrative Services Malicoat presented the staff report and recommended the
Council adopt a Resolution approving the FY 2018-20 Biennial Budget. Staff responded to
questions from Council.
Mayor Hill invited public comment. No public comments were received.
Action: Council Member Barneich moved to adopt a Resolution entitled: "A RESOLUTION OF
THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ADOPTING THE FISCAL YEAR
2018-19 AND FISCAL YEAR 2019-20 BIENNIAL BUDGET AND MAKING APPROPRIATIONS
FOR THE AMOUNT BUDGETED". Council Member Brown seconded, and the motion passed
on the following roll-call vote:
AYES: Barneich, Brown, Harmon, Ray, Hill
NOES: None
ABSENT: None
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Minutes: City Council Meeting Page 8
Tuesday, June 12, 2018
13. COUNCIL COMMUNICATIONS
Mayor Pro Tern Ray requested a discussion item regarding the placement of an advisory measure
on the November ballot be placed on the next meeting agenda. Council Member Brown
concurred.
14. COMMUNITY COMMENTS'AND SUGGESTIONS
None.
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15. CLOSED SESSION
None.
16. ADJOURNMENT
Mayor Hill adjourned the meeting at 12:09 a.m.
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Jim Hill, Mayor
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KeI y We m•/ e, City Clerk
(Approved at CC Mtg 07-4-20/8
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