Minutes 1997-02-11
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MINUTES
SPECIAL AND JOINT MEETINGS
OF THE CITY COUNCIUREDEVELOPMENT AGENCY
TUESDAY, FEBRUARY 11,1997
COUNCIL CHAMBERS, 215 EAST BRANCH STREET
ARROYO GRANDE, CAUFORNIA
SPECIAL CITY COUNCIL MEETING
Mayor A.K. "Pete" Dougall; Mayor Pro Tem Michael Lady; Council Members Michael
Fuller, Thomas A. Runels, and Steve Tolley; City Manager Robert L. Hunt, and City
Attorney Timothy J. Carmel met at 6:30 p.m. to discuss the following:
1. CLOSED SESSION:
(a) CONFERENCE WITH LEGAl COUNSEL - Anticipated litigation Significant
exposure to litigation pursuant to Government Code Section 54956.9(b)
involving one (1) potential case.
(b) Public Employee Appointment Pursuant to Government Code Section 54957:
Position to be Considered: Special Counsel Concerning Central Coast Town
Center Project.
2. ADJOURNMENT: To Regular Council Meeting, February 11,1997, 7:30 p.m.,
Arroyo Grande City Council Chambers.
REGULAR CITY COUNCIL MEETING
1. CALL TO ORDER
The City Council of the City of Arroyo Grande met in regular session at 7:30 p.m., with
Mayor Dougall presiding. He stated the following actions on Items 1.(a) and (b) in the
Closed Session: The City Council approved the hiring of Rachel Hooper and the firm of
Shute, Mihaly and Weinberger to the public office of Special Legal Counsel regarding the
Central Coast Town Center Project.
2. and 3. FLAG SALUTE AND INVOCATION
The Pledge of Allegiance was led by the Arroyo Grande Fire Department Explorer Post. I
The Reverend Roy Fruits of Grace Bible Church delivered the invocation.
4. ROLL CALL
City Council - Present with Mayor Dougall were Mayor Pro Tem Lady and Council
Members Fuller, Runels, and Tolley. Staff members present were City Manager Hunt, City
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Attorney Carmel, City Clerk Nancy Davis, Community Development Director Doreen
Liberto-Blanck, Finance Director Lynda Snodgrass, Chief of Police Rick TerBorch, Director
of Building and Fire Terry Fibich, Director of Parks and Recreation John Keisler, and
Public Works Director John Wallace.
Redevelopment Agency - Present with Chair Dougall were Vice Chair Lady and Board
Members Fuller, Runels, and Tolley. Staff members present were Executive Director Hunt,
Agency Counsel Carmel, Board Secretary Davis, Assistant Executive Director Liberto-
Blanck, Chief TerBorch, Chief Fibich, Mr, Keisler, and Mr. Wallace.
5. SPECIAL PRESENT A T10NS
None.
6. AGENDA REV1EW
Mr. Hunt said he distributed a supplemental to Agenda Item 7.a.
6.A. RESOLUTIONS AND ORDINANCES READ IN TITLE ONLY
It was moved by Fuller/Lady and the motion passed unanimously that all resolutions and
ordinances presented at the meeting be read in title only and all further reading be waived.
7,A. ' PUBLIC HEARING - DEVELOPMENT CODE REZONE CASE NO. 96~O2:
TENTATIVE TRACT NO. 2217. LOCATED AT 590 EAST CHERRY AVENUE. APPLIED
FOR BY COKER ELLSWORTH
Community Development Director Liberto-Blank gave a brief summary of the staff report
and noted that the Planning Commission recommended approval of the rezone.
After being assured that the Public Hearing had been duly published and all legal
requirements met, Mayor Dougall declared the hearing open and said all persons would
be heard regarding the matter.
Coker Ellsworth, 129 Bridge Street, O\M1er and applicant, showed a map of the project and
outlined the project's proposal, noting a small neighborhood park in the center of the
project, a retardation basin for drainage water, a block wall along Cherry Avenue and
Branch Mill Road with a landscaped area, meandering sidewalk, and bike lanes. He
stated the lot sizes were consistent with those in the surrounding areas and the homes
\YOuld average 1,600 -1,800 square feet with some up to 2,000 square feet. The stone
culvert 'NOuld be left intact. Potential buyers \YOuld be notified of the agricultural activities
in the neighboring Dixon estate. He also noted the project added only 2% to the overall
drainage and 'NOuld not be the source of a drainage problem. Additionally, the developer
'NOuld be willing to assist financially towards a solution to the overall drainage situation.
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CITY COUNCIL MINUTES
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Speaking in favor of the project were: Tony Marsalek, 536 E. Cherry, (his family was the
original o'Nrler of the property and sold it to Mr. Coker); Don. Gullickson, 513 E. Cherry;
Van Vandeveer, 756 Myrtle Street; Larry Turner, 323 Noguera.
Speaking against the development was Camina Tripodi, 521 E. Cherry
Grace Stilwell, 734 Myrtle Street, made an inquiry about the culvert and drainage issue.
Fred Schott, project engineer, responded to the question as well as to inquiries from
Council Members Runels and Fuller as to possible drainage alternatives and the history
of drainage development on the property.
When no one further came forward to speak, Mayor Dougall closed the hearing to the
floor.
Discussion was held between Council Members regarding the drainage issue. It was
moved by F uller/Runels to approve the Ordinance with modification regarding the fence
around the drainage basin. The motion did not carry (1-4-0, Fuller voting aye, Runels,
Tolley, Lady, and Dougall voting no). After Council discussion, it was moved by
LadylTolley (5-0-0, Lady, Tolley, Fuller, Runels, and Dougall voting aye) and approved
unanimously the first reading of an ordinance to adopt a Negative Declaration with
mitigation measures and instruct the City Clerk to file a Notice of Determination approving
Development Code Rezone Case No. 96-002, located at 590 E. Cherry Avenue, from RA-
B3 to SF. It was further moved by LadylRunels (5-0-0, Lady, Runels, Tolley, Fuller, and
Dougall voting aye) and the motion passed unanimously to adopt the Resolution No. 3198
conditionally approving Tentative Tract No. 2217.
8. PUBUC COMMENT PERIOD
Robert Schiebelhut, Sinsheimer, Schiebelhut & Baggett, 1010 Peach Street, San Luis
Obispo, said his firm represents AGRA, the group of individuals who purchased the
development rights to the Central Coast TO'M"I Center. He requested that Consent Agenda
Item 9.(0) be taken off the Consent Agen~a, be reconsidered fully, and then denied. He
objected to the initiation of an investigation of fraud on the part of his client. He distributed
a letter to the Council from co-counsel Elizabeth Watson of Greenberg & Glusker, gave
a summary of the background of the project's previous approval, read portions of a
transcript from a previous City Council meeting regarding the project, stated the Council
did not have the right to select the tenants of the project, and encouraged the Council to
change its course of action for the economic benefit of the City and to avoid incurring
unnecessary attorney fees on behalf of both parties.
Speaking in favor of the Council's action and the appeal process were Otis Page, 606
Myrtle Street, Fred Flannell, 550 Via Vaquero, and Howard Mankins, 200 Hillcrest.
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Speaking against the allegation of fraud was Drew Brandy, 444 Toyon.
Speaking against the City incurring legal fees was Don Gullickson, 513 E. Cherry,
There being no further public comment, Mayor Dougall closed the Public Comment Period
to the floor.
9. CONSENT AGENDA
It was moved by Council/Board Members Lady/Fuller (5-0-0, Lady, Fuller, Runels, Tolley,
and Dougall voting aye) and the motion passed unanimously to approve Consent Agenda
Items 9.(b) through 9.(g) and Items 9.(i) through 9.(s), with the recommended courses of
action.
9.b. Cash Disbursements Ratification. Approved.
9.c. Statement of Investment Deposits. Information.
9.d. Conditional Use Permit Case No. 96-544, 122 Le Point Street, Water Neutralization
Proposal. Approved.
9.e. Award of Bid for SeYler/Storm Drain Cleaner. Approved the purchase of the
SeYler/Storm Drain Cleaner from Gibbs International Trucks.
9.f. Declaration of Surplus Property. Resolution No. 3199 adopted declaring items to be
placed on a surplus list and requesting authorization for sale to local agencies.
9.g. Hillcrest-Rancho Grande Pressure Zone Connection, City Project No. 60-96-6, Final
Progress Payment to DeChance Construction Co., Inc., and Contract Change Order No.
3. Final Payment authorized, Change Order No. 3 approved, Notice of Completion to be
filed, Release the Retention of $15,361.72 after thirty-five days, if no liens have been filed.
9. i. Request to PUFchase Utility Vehicle. Approved.
9,j. Request for Proposals for Preparation of General Plan/Development Code Update.
Approved.
9.k. Adoption of Development Code Amendment - Second Residential Dwelling Units.
Approved Adopting Ordinance No. 482 C.S.
It was moved by Council/Board Members Lady/Fuller and passed to approve Consent
Agenda Items 9.a. and 9.h., with the recommended courses of action. Council Member
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Runels abstained from voting on Items 9.(a) and (h). Council Member Tolley abstained
from Item No. 9.(a) as 'Nell.
9.a. Minutes of City CouncillRedevelopment Agency meeting of November 26; and City
Council Meetings of December 3, and December 10, 1996. Approved with two
abstentions.
9,h. Bikeway Project Two, Project No. 90-96-2, Progress Payment No. S to A.J. Diani
Construction Co., Inc.; and Contract Change Order NO.4. Progress Payment NO.5
authorized and Contract Change Order No. 4 approved with one abstention
10.A. FAMILY PORTRAIT DAY STATUS
Director of Parks and Recreation John Keisler summarized his findings regarding parking
and traffic circulation for the site options of Arroyo Grande High School, Saint Patrick's
School, and the Soto Sports Complex to hold a Family Portrait Day. The estimated cost
to the City using the Soto Sports Complex 'AlaS $600. In addition, traffic control costs were
roughly estimated at $1,200 to $1,500 without using bus transportation. Council concurred
that the project is a good idea, and promotes community good will, but due to current fiscal
concerns, pursuing the project any further was suspended.
11A REQUEST FOR USE OF CITY LEASED PARKING LOT FOR PRNATE DRIVEWAY
AND PARKING ACCESS
Community Development Director Doreen Liberto-Blanck summarized the request by John
and Maureen Gutierrez for a conditional use permit for a delicatessen at 203 East Branch
Street. The applicants are requesting driveway access to the rear of the property through
property the City currently leases and use of existing parking spaces for the delicatessen.
Mr. Gutierrez, the applicant, and Mr. Mankins, the owner of the property the City leases,
spoke to the Council on the parking issue.
Council Members discussed its desire to encourage businesses to open in the downtown
village area, using Redevelopment funds to C9nstruct lots, better informing citizens of
parking lots currently available, in-lieu fees, the existence of the Downtown Parking
Advisory Board, and the need for a long term solution to parking.
It was moved by Lady/Fuller and the motion passed unanimously to direct staff to pursue
the Lessor's consent for the proposed use and work with the Applicant and Lessor to
establish the proposed use.
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11.8. DISCUSSION OF POTENTIAL ANNEXATION - TRACT 1551
Community Development Director Doreen Liberto-Blanck informed the Council that the
applicant had requested to continue this item so costs of annexation can be revie~,
11.C. FISCAL YEAR 1996197 MID-YEAR BUDGET STATUS REPORT
City Manager Hunt thanked the Council for its support of changes made in financial
operations and thanked the Finance staff for its hard work.
Finance Director Snodgrass summarized key points of the 1996/97 Mid-Year Budget
Report. Council commended the Finance Director, the previous Interim Finance Director
Loron Cox, and the Finance staff for putting together an excellent budget presentation
which could be used as a planning tool for the future.
It was moved by RunelslFuller and the motion passed unanimously to approve the budget
adjustments and recommendations included in the Mid-Year Budget Report and support
schedules.
11.D. FISCAL YEAR 1997-98 BUDGET DEVELOPMENT GUIDEUNES AND
CALENDAR
City Manager Hunt infonned the Council that although economists report that the State has
entered into a recovery period and the recession in California is ending, a conservative
approach to the City's budget is still prudent and highly recommended. A citizen
participation meeting is still recommended after a preliminary budget has been developed
for community input.
Council commended staff on the improved budget process.
It was moved by Ladyrrolley and the motion passed unanimously to:
1. Approve the Budget Development Guidelines for the preparation of the Fiscal Year of
1997 -98 Preliminary Base Budget; and
2. Approve the calendar for the development and review of the Fiscal Year 1997-98
Preliminary Base Budget.
12. COUNCIUAGENCY COMMUNICATIONS
Council Member Tolley requested that staff to return to the Council in April to report on the
advantages and disadvantages of preparing a parking plan or adopting in-lieu parking
space fees, or some other alternative, to provide parking in the village so individual
businesses do not have to address parking problems individually before the Council; and
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that the Village Merchants Association and the Parking Advisory Board be included in any
discussions of alternate parking solutions.
Mayor Dougall noted that the existence of the Parking Advisory Board is still in question
due to the unknown outcome of Proposition 218.
Council Member Lady thanked Mayor Dougall for attending the Council of Governments
meeting at the last moment on his behalf.
13. 5T AFF COMMUNICA TION5
None.
14. ADJOURNMENT
It was moved by LadylRunels and the motion passed unanimously to adjourn the meeting
at 9:49 p.m.
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ATTEST: 71~a.~
NANCY DAVIS, CITY CLERK
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