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Agenda Packet 2005-08-09 , CITY OF City Council Agenda Tony Ferrara Mayor Steven Adams City Manager Joe Costello Mayor Pro Tern tI?LIFOR~" Timothy J. Carmel City Attorney Jim Dickens Council Member Keliy Wetmore City Clerk Jim Guthrie Council Member ". ~ '. Ed Arnold Council Member AGENDA SUMMARY CITY COUNCIUREDEVELOPMENT AGENCY MEETING TUESDAY, AUGUST 9,2005 7:00 P.M. Arroyo Grande City Council Chambers 215 East Branch Street, Arroyo Grande 1. CALL TO ORDER: 7:00 P.M. 2. ROLL CALL: COUNCIURDA 3. FLAG SALUTE: BOY SCOUT TROOP 489 4. INVOCATION: JEAN BOWSER, BAHAI FAITH 5. SPECIAL PRESENTATIONS: None. 6. AGENDA REVIEW: 6a. Move that all resolutions and ordinances presented tonight be read in title only and all further readings be waived. AGENDA SUMMARY - AUGUST 9, 2005 PAGE 2 7. COMMUNITY COMMENTS AND SUGGESTIONS: This public comment period is an invitation to members of the community to present issues, thoughts, or suggestions on matters not scheduled on this agenda. Comments should be limited to those matters that are within the jurisdiction of the City Council. The Brown Act restricts the Council from taking formal action on matters not published on the agenda. In response to your comments, the Mayor or presiding Council Member may: . Direct City staff to assist or coordinate with you. . A Council Member may state a desire to meet with you. . It may be the desire of the Council to place your issue or matter on a future Council agenda. Please adhere to the following procedures when addressing the Council: . Comments should be limited to 3 minutes or less. . Your comments should be directed to the Council as a whole and not directed to individual Council" members. , . Slanderous, profane or personal remarks against any Council Member or member of the audience shall not be permitted. 8. CONSENT AGENDA: The following routine items listed below are scheduled for consideration as a. group. The recommendations for each item are noted. Any member of the public who wishes to comment on any Consent Agenda item may do so at this time. Any Council Member may request that any item be withdrawn from the Consent Agenda to permit discussion or change the recommended course of action. The City Council may approve the remainder of the Consent Agenda on one motion. 8.a. Cash Disbursement Ratification (PillOW) Recommended Action: Ratify the listing of cash disbursements for the period July 16, 2005 through July 31, 2005. 8.b. Consideration of Annual Reoort - Fiscal Year 2004-05 Cash Activitv in Transoortation Facilities Develooment Imoact Fund (PillOW) Recommended Action: Accept the annual report of Transportation Facilities Development Impact Fund cash activity and ending cash bal~nce at June 30, 2005. 8.c. Consideration of Aooroval of Minutes (WETMORE) Recommended Action: Approve the minutes of the Regular ,City Council/Redevelopment Agency meeting of June 28, 2005, and the Special City Council and Regular City Council/Redevelopment Agency meetings of July 12, 2005 as submitted; 8.d. Consideration of Aooroval of Plans and Soecifications for East Grand Avenue/Halcvon Traffic Sianal Uoarade Proiect (SPAGNOLO) Recommended Action: 1) Approve the plans and specifications for the E. Grand Ave.lHalcyon Traffic Signal Upgrade Project, PW 2005-01; 2) Authorize the Public Works Department to solicit public construction bids; 3) Find that the project is categorically exempt from CEQA pursuant to Section 15301(e); and 4) Direct the Director of Administrative Services to file a Notice of Exemption. AGENDA SUMMARY - AUGUST 9, 2005 PAGE 3 8. CONSENT AGENDA (continued): 8.e. Consideration of Disadvantaaed Enterorise (DBE) Proaram for Federal' Fiscal Year (FFy) 2005-06 (SPAGNOLO) Recommended Action: Approve the FFY 2005-06 DBE Program with the established Overall Annual DBE Goal and submit to Caltrans by September 1, 2005. 8.1. Consideration to Reiect the Sole Bid for the Well No. 10. Phase 1 Proiect. PW 2004-07 (SPAGNOLO) Recommended Action: Reject the sole bid for the construction of the Well No. 10, Phase 1 Project, PW 2004-07. 8.g. Consideration to Reiect All Bids for the Sewer Lift Station No. 1 Uoarade Proiect. PW 2005.()2 (SPAGNOLO) Recommended Action: Reject. all bids for the Sewer Lift Station No. 1 Upgrade Project. 8.h. Consideration to Aoorove the Purchase of a Reolacement Pumo and Pioe Column for Well #6 (SPAGNOLO) Recommended Action: 1) Ratify approval of the purchase of a replacement pump and pipe column for Well No.6; and 2) Authorize an appropriation of $6,000 from the Water Fund and a transfer of $5,000 from the Parks Capital Improvement Project Fund. 8.1. Consideration of Adootion of Ordinance Amendina the Zonina Mao to Desianate the Subiect Prooertv as Planned " Develooment 1.1 " (PD-1.1): Develooment Code Amendment 05-008. Initiated bv the City of Arrovo Grande for Prooertv Located at 1400 West Branch Street (STRONG) Recommended Action: Adopt Ordinance amending the Zoning Map to designate the subject property as Planned Development 1.1 (PD-1.1). 8.j. Consideration of Adootion of Ordinance Amendina Chaoter 15.04 of Title 15 of the Arrovo Grande Municioal Code Uodatina Uniform Buildina and Related Codes (FIBICH) Recommended Action: Adopt Ordinance amending Chapter 15.04 of Title 15 of the Municipal Code updating Uniform Building and related Codes. 8.k. Consideration of Award of Bid for 3/4-Ton Pick Uo Truck for the Public Works Deoartment (SPAGNOLO) Recommended Action: Award the bid of $17,090.12 from Mullahey Ford for a o/.-ton pick up truck. 8.1. Consideration of Low/Moderate Income Housina Set Aside Plannina and Administrative Exoense Determination (ADAMS) [COUNCIURDA] Recommended Action: Approve the annual determination that the planning and administrative expenses of the Agency that are paid from the Agency's Low and Moderate Income Housing Fund for Fiscal Year 2005-06 are necessary for the production, improvement, or preservation of low and moderate income housing. AGENDA SUMMARY - AUGUST 9, 2005 PAGE 4 8. CONSENT AGENDA ITEMS (continued): 8.m. Consideration of Aoorooriation for Develooment of City Budaet and Lona Ranae Financial Plan Cable Television Proaram (ADAMS) Recommended Action: Appropriate $2,500 from the Public, Education and Govemment access (PEG) Fund for development of a public information program to broadcast on the City's cable television government channel. 8.n. Consideration of Aareement with the Oceano Community Services District (OCSD) for Temoorarv Purchase of Suoolemental Water (ADAMS) Recommended Action: Approve Agreement with OCSD for temporary purchase of supplemental water. 9. PUBLIC HEARINGS: 9.a. Continued Public Hearina - Consideration of an Ordinance Amendina the Arrovo Grande Municioal Code Amend Arrovo Grande Municioal Code Chaoters 16.04 and 16.36 of Title 16 to Define Formula Businesses and Restrict Formula Businesses in the Villaae Core Downtown and Villaae Mixed Use/Historic Character Overlav Zonina Districts" (Develooment Code Amendment 05-O09) (STRONG) Recommended Action: Introduce Ordinance to amend Title 16, defining and regulating formula businesses in the Village Core Downtown and Village Mixed Use districts within the Historic Character Overlay (D-2.4). 9.b. Continued Public Hearina - Consideration of the Establishment of a Historic Resources Committee and a Historic Desianation Process for the City of Arrovo Grande (STRONG) Recommended Action: 1) Introduce Ordinance adding Chapter 2.21 to Title 2 of the Municipal Code establishing a Historical Resources Committee' and amending Chapters 16.04 and 16.16 to Title 16 of the Municipal Code establishing a Historic Designation Process; and 2) Adopt a Resolution establishing appointment procedures for the Historical Resources Committee. 10. CONTINUED BUSINESS: 10.a. Consideration to Aoorove a Water Wheelina Aareement with the Oceano Community Services District (OCSD) for the Christie Familv Subdivision (SPAGNOLO) Recommended Action: 1) Approve the Agreement with OCSD; and 2) Approve the proposed modifications to the City's policy regarding water wheeling agreements for future requests to enter into water wheeling agreements. 10.b. Consideration of an Uodate ofthe City's Water Use and Suoolv (SPAGNOLO) . Recommended Action: 1) Review information" presented; 2) Direct staff to proceed with development and implementation of existing water supply and conservation measures; and 3) Reconsider projections and strategies when the groundwater study is completed. AGENDA SUMMARY - AUGUST 9, 2005 PAGE 5 11. NEW BUSINESS: 11.a. Consideration of Aooointment of Votina Deleaate and Alternate for the Leaaue of California Cities Annual Conference (ADAMS) Recommended Action: Appoint one Council Member as the voting delegate and one Council Member as the alternate delegate for the League of California Cities Annual Conference. 12. CITY COUNCIL MEMBER ITEMS: The following item(s) are placed on the agenda by a Council Member who would like to receive feedback, direct staff to prepare information, and/or request a formal agenda report be prepared and the item placed on a future agenda. No formal action can be taken. None. 13. CITY MANAGER ITEMS: The following item(s) are placed on the agenda by the City Manager in order to receive feedback and/or request direction from the Council. No formal action can be taken. None. 14. COUNCIL COMMUNICATIONS: Correspondence/Comments as presented by the City Council. 15. STAFF COMMUNICATIONS: Correspondence/Comments as presented by the City Manager. 16. COMMUNITY COMMENTS AND SUGGESTIONS: This public comment period is an invitation to members of the community to present issues, thoughts, or suggestions. Comments should be limited to those matters that are within the jurisdiction of the City Council. The Brown Act restricts the Council from taking formal action on matters not published on the agenda. 17. ADJOURNMENT *****************J.J.J.J.J.J.J.J. AIi staff reports or other written documentation relating to each item of business referred to on the agenda are on file in the Administrative Services Department and are available for public inspection and reproduction at cost. If requested, the agenda shall be made available in appropriate alternative formals to persons with a disability, as required by the Americans with Disabilities Act. To make a request for disability-related modification or accommodation, contact the Administrative Services Department al805-473-5414 as soon as possible and at least 48 hours prior to the meeting date. ********.*****............ Note: This agenda was prepared and posted pursuant to Government Code Section 54954.2. www.arroyogrande.org -- --.---,,-- 8.a. MEMORANDUM TO: CITY COUNCIL FROM: ANGELA PILLOW, DIRECTOR OF FINANCIAL SERVICES.M BY: FRANCES R. HEAD, ACCOUNTING SUPERVISO~ SUBJECT: CASH DISBURSEMENT RATIFICATION DATE: AUGUST 9, 2005 RECOMMENDATION: It is recommended the City Council ratify the attached listing of cash disbursements for the period July 16 through July 31,2005. FUNDING: There is a $968,901.09 fiscal impact. All payments are within the existing budget. DISCUSSION: The attached listing represents the cash disbursements required of normal and usual operations. It is requested that the City Council approve these payments. AL TERNA TIVES: The following alternatives are provided for the Council's consideration: . Approve staffs recommendation; . Do not approve staff's recommendation; . Provide direction to staff. Attachments: Attachment 1 - Cash Disbursement Listing Attachment 2 - July 22, 2005, Accounts Payable Check Register Attachment 3 - July 22, 2005, Accounts Payable Check Register Attachment 4 - July 22, 2005, Payroll Checks & Benefit Register Attachment 5 - July 26, 2005, Accounts Payable Check Register Attachment 6 - July 27,2005, Accounts Payable Check Register Attachment 7 - July 29, 2005, Accounts Payable Check Register ATTACHMENT 1 CITY OF ARROYO GRANDE CASH DISBURSEMENTS ?.n tie 'Pettid ~ fl4 16 7~ fl4 31. 2005 . August 9,2005 Presented are the cash disbursements issued by the Department of Financial Services for the period July 16 to July 31, 2005. Shown are cash disbursements by week of occurrence and type of payment. WEEK TYPE OF PAYMENT A IT ACHMENT AMOUNT July 23, 2005 Accounts Payable Cks 122056-122092 2 $ 231,027.60 Accounts Payable Cks 122109-122183 3 252,133.87 Payroll (becks & Benefit (becks 4 404,676.28 $ 887,837.75 July 30, 2005 Accounts Payable Cks 122185 5 $ 11,4%.17 Accounts Payable Cks 122186-122205 6 16,729.45 Accounts Payable Cks 122206-122305 7 52,837.72 $ 81,063.34 1W~WEEK TOTAL $ %8,901.09 U,\MSWORD\ CITY COUNCIL FORMS\ CASH DISBURSEMENT FORMS\ CASH DISBURSEMENT SCHED wEXCEL WKS.doc CIIY OF ARROYO GRANDE INDEX FOR BUDGET DEPARTMENTS EDEN COMPUTER SYSTEM GENERAL FUND (010\ SPECIAL REVENUE FUNDS Ciht Government (Fund 010) ParkI>"vel.opment Fee Fund (Fund 213) 4001 - City Council 4550 - Park Development Fee 4002 - Administrative Services Traffic Signal Fund (Fund 222) 4003 - City Attorney 4501 - Traffic Fund 4101 - City Manager Transportation Fund (Fund 225) 4102 - Printing/Duplicating 4553 - Public Transit System 4120 - Financial Services Construction Tax Fund (Fund 230) 4121 - Taxes/Insurance/ Bonds 4556 - Construction Tax 4130 - Community Development Police Grant Funds 4131 - Community Building (CDBG) 4201 - Law Enforcement Equip. (Fd 272) 4140 - Management Information System 4202 - State AB3229 Cops Grant (Fd 271) 414~ - Non Departmental 4203 - Federal Universal Hiring (Fd 274) Public Safety (Fund 010) 4208 - Federal Local Law Enforcmt (FD 279) 4201 - Police Redevelopment Agency ( Fund 284) 4211 - Fire 4103 - Redevelopment Administration 4212 - Building & Safety ENTERPRISE FUNDS Public Works (Fund 010) Sewer Fund (Fund 612) 4301 -Public Works-Admin & Engineering 4610 - Sewer Maintenance 4303 - Street/Bridge Maintenance Water Fund (Fund 640) 4304 - Street Lighting 4710 - Water Administration 4305 - Automotive Shop 4711 - Water Production Parks & Recreation (Fund 010) 4712 - Water Distribution 4420 - Parks Lopez Administration (Fund 641) 4421 - Recreation 4750 - Lopez Administration 4422 - General Recreation CAPITAL IMPROVEMENT PROGRAMS (Fund 350\ 4423 - Pre-School Program 5501-5599 - Park Projects 4424 - Recreation-Special Programs 5601-5699 - Streets Projects 4425 - Children in Motion 5701-5799 - Drainage Projects 4426 - Five Cities Youth Basketball 5801-5899 - Water/Sewer/Street Projects 4430 - Soto Sport Complex 5901-5999 - Water Projects 4213 - Government Buildings 4460 - Parkway Maintenance U,\MSWORD\ CITY COUNCIL FORMS\ CASH DISBURSEMENT FORMS\ CASH DISBURSEMENT SCHED wEXCEL WKS.doc ~ - '" M 00 00 ~ ~ 00 00 '" 0 ~ " CO CO 00 00 1'-1'- 1'-1'- <qC'! ~ CO " 0 "'..; CO'; CO'; r....:....: LriU"i ~ ~ N ~ E 1'-1'- ...... 1'-1'- ~ ~ 1'-1'- ~ N OAq NN .....-."': <( ~ ~ ~ ~ Qi ~ ~ Qi Cl Cl '" .. 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Deferred Compensation Health Insurance Dental Insurance Vision Insurance FUND 010 FUND 220 FUND 284 FUND 612 FUND 640 19,258.02 404,676.28 357,800.41 15,390.98 5,335.02 6,891.85 Salaries Full time Salaries Part-Time - PPT Salaries Part-Time - TPT Salaries OverTime Salaries Standby Holiday Pay 174,366.49 16,029.29 14,621.58 10,463.05 400.40 15,769.43 7,303.36 - - - 13,476.96 7,488.40 11,670.09 67,238.26 19,474.25 422.25 1,090.80 750.00 32,108.33 4,251.66 957.63 739.02 1,07085 271.83 500.00 - 237.35 3,900.00 75.00 404,676.28 2005-' 5 ....J- r~o 0 -l~~:.- ATTACHMENT 4 - CITY OF ARROYO GRANDE DEPARTMENTAL LABOR DISTRIBUTION PAY PERIOD 07/01/05 - 07/14/05 07/22/05 '\ ~ - ~ 0 N 0 ... CD 0 0 CO '" '" '" 0 ~ " CD 0 I"- 0 ... e> CO 0 ": l"- e> 0 " M 0 0 r-.: r-.: <ri N 0 r-.: oj 0 '" ~ ;;:; E '" 0 '" '" N CD ... 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MEMORANDUM TO: CITY COUNCIL I ANGELA PILLOW, DIRECTOR OF FINANCIAL SERVICES '* FROM: SUBJECT: CONSIDERATION OF THE ANNUAL REPORT-FISCAL YEAR 2004-05 CASH ACTIVITY IN TRANSPORTATION FACILITIES DEVELOPMENT IMPACT FUND DATE: AUGUST 9, 2005 RECOMMENDATION: It is recommended the City Council accept the annual report of Transportation Facilities Development Impact Fund cash activity and ending cash balance at June 30, 2005. FUNDING: There is no impact on funding from this ite!T'. DISCUSSION: Section 6 of Resolution 3021 (Attachment B) requires that within sixty (60) days of the close of each fiscal year, an accounting of the Transportation Facilities Development Impact Fund shall be made available to the public. To present a complete picture of the cash activity in this fund, a reconciliation from the Fiscal Year 2003.04 Cash Activity Report (reported August 26, 2004) and the independent audit balance is presented at the top of AttachmentA The reconciliation shows an increase in the Transportation Development Fund of $1,567. This increase is the result of additional interest received after the Fiscal Year 2003-04 Cash Activity Annual report was prepared. During FY 2004-05, facility impact fees ($171,926) and interest income ($40,565) provided $212,491 of additional cash. The estimated June 30, 2005 cash balance equals $2,199,152, but this balance may change with the finalization of year-end CIP accounting. While a sizable balance has accumulated in this fund, the approved Capital Improvement Program includes close to $200,000 in FY 2005-06 and $750,000 in FY 2006-07 for the Brisco Road-Halcyon Road Interchange project. CITY COUNCIL CONSIDERATION OF TRANSPORTATION FACILITIES DEVELOPMENT REPORT AUGUST 9, 2005 PAGE 2 ALTERNATIVES: The following alternatives are provided for City Council consideration: - Approve staff recommendation and accept the annual report; - Do not approve staff recommendation and decline the annual report; - Modify as appropriate and approve staff's recommendation; . Provide direction to staff. Attachments: 1. A - Report of Cash Activity and Ending Unaudited Cash Balance 2. B - Resolution No. 3021 ATTACHMENT A CITY OF ARROYO GRANDE TRA NSPOR TA TION FACILITIES IMPACT FEE FUND REPORT OF CASH ACTIVITY AND ENDING UNAUDITED CASH BALANCE AT JUNE 30, 2005 Reconciliation to Audit: Un.audited Cash Balance at July 1, 2004 $1,990,862 2003-04 End of Year Adjustments 1,567 Audited Cash Balance as of July 1, 2004 $1 ,992.429 2004-05 Cash Activity: Collections, 2004-05 Fiscal Year Interest Income $ 40,565 Facility Impact Fees 171,926 Total Revenues $ 212.491 Increase in Interest Receivable, 2004-05 Fiscal Year (5.768) Ending Cash Balance, June 30, 2005 $2.199.152 * End of Year Adjustments: The 2003-04 report was filed before the end of year interest income of $1 ,567 was received. . .. .. A TT ACHMENT B RESOLUTION NO. 3021 A RESOLUTION OF THE CITY OF ARROYO GRANDE SEITING FORlll11IE AMOUNT OF PUBLIC FACILITY IMPACT FEES WHEREAS, Ordinance No, 461 C.S. of the City of Arroyo Grande establishes transportation facility impact fees .and provides for the selling of fee amounts by resolution of the City Council; and, WHEREAS, the City has conducted a study which estimates the costS of public facilities needed to maintain the existing level of public services to existing and future residents and businesses in the City of Arroyo Grande, which Is attached hereto as Exhibit "A' and which is hereby incorporated herein by reference: and, WHEREAS, pursuant to California Government Code Section 660 16, said study has been available for public inspection and review at least ten (10) days prior to a public hearing held on this maller and public notice was provided fourteen (14) days prior to the public hearing; and, WHEREAS, pursuant to California Government Code Section 66017, this resolution shall become effective sixty (60) days from the passage of Ordinance 461 CS. NOW, TIIEREFORE, the City Council of the City of Arroyo Grande finds and resolves that: 1. F1ndlm!s: a. The purpose of transportation facilities impact fees is to protect the public health, safety and welfare by maintaining the existing level of public services for existing and future residents and businesses within the City of Arroyo Grande, and to pay for the cost of providing such facilities. b. The fees collected pursuant to this resolution shall be used only to pay for public facilities identified in Exhibit. A. pursuant to Ordinance No. 461 C.S. c. There is a reasonable relationship between the types of development on which fees are imposed and the purpose for which such fees will be used, . 2. Cost Estbnates: The estimated costs of public facilities to be funded with the fees established by this resolution are set forth in attached Exhibit · A . . If the actual or estimated cost of public facilities, as identified. and shown in attached Exhibit. A. should change, the City Manager shall review the fees to determine whether such fees are still adequate. If the fees should be changed, the City Manager shall recommend to the City Council a revised fee schedule be adopted by resolution. 3. Amount of Fees: a. The amount of the public facility impact fees shall be as set forth in attached Exhibit "B." b. The Standard Industrial Classification Manual (SIC) shall be used to interpret land use categories, when it is unclear. " . " Resolution No. 3021 Selling Forth Transportation Facilities Development Impact Fees Page 2 4. Time of Pavment: a. Public facility impact fees for any development project shall be due and payable prior to final inspection and/or issuance of certificate of occupancy, and shall be collected by the Building Official. Notwithstanding, under Government Code Section 66007 (b), the City is authorized to collect the fees at the time of building permit issuance if the fees are for public facilities and improvements for which accounts have been established and funds appropriated, and for which the City has adopted a proposed construction schedule; or the fees are to reimburse the City for expenditures previously made. .. 5. Exemptions: Exemptions to the fees adopted herein may be granted by the City Council pursuant to Ordinance _ of the City of Arroyo Grande. 6. Senarate Accounts: The Finance Director shall deposit fees collected under this resolution in separate public facility impact fee accounts as required by California Government Code Section 66006. Within sixty days of the close of each fiscal year, the Finance Director shall make available to the public an accounting of each fund, and the City Council shall review that information at its next regular public meeting; notice of the meeting shall be given as provided in Government Code Section 66006(b)(2). 7. Interoretatlon: Interpretation of this Resolution shall be submitted to the Planning Department in writing and an interpretation shall be made by the Planning Commission, pursuant to Ordinance No. ~. NOW, TIIEREFORE, BE IT RESOLVED by the Council of the City of Arroyo Grande at its meeting held on the 22nd day of March , 1994, on a motion of Council Member Burke' , seconded by Council MaOOer Brandy , and on the following roll call vote: A YES: Council Members Burke, Brandy and Mayor Gallagher NOES: None ABSENT: ~cil Member Souza A TIEST: ~a.~ NANCY A. A VIS, CITY CLERK APPROVED AS TO FORM: AITORNEY ,. . EXHIBIT II A II ., Table 1 Transportation System Improvement Plan . Estimated Other Arroyo Grende Arroyo Grende Improvement Ollcrfpdon Coot Avenel.. Percentage Coe' Priority Involvod7 Widen 8r1.00 Roed underarolelng 12,000,000 No 100"'" U,ooo,OOO 1 EI Camfno R.at.. BrI.co to '510,000 No 100"," .510.000 1 Halcyon; widen to four lene. W.., B'lnah Stre.t .. 418"1 from .',6S0,OOO No 100"'" .1,690,000 1 O.k P.rk to BrI... -...,.' Welt Branoh Str..t.. & lene'rom .740,000 No 100"," t7 40,000 5 B~.co to Grond Av.. Ook Pork Rood - WId.n t. 4 $760,000 Grove, Beeoh 50% 8380,000 5 len.. Grand Ave. to 101 Hu..no Rood/227 . Sign.... .120.000 County. 33% US.600 5 Int.r..adon Celt,.". Brench St.rr,.,no Way.. $736,000 No 100% .736.000 1 ,Ioonngur. Intera.cdon Including r,feted Improvement. . . .'20,000 No 100% .120.000 5 Trom. W.ylFoIr Ooko . .Ignoll.. Inter..odon Including related Impr.vom.nti ....loYo" Ad./Grand Ave. . NB I.'t .225,000 N. 100% U25.000 5 turn, we I.'t turn . . Elm St.1 Ferroll Ave. - algnanzl .120,000 No 100% ., 20,000 5 Inll,..ctlon Veney Road .. realign aurve at $33,000 No 100% 833.000 3 .ch.al Folr O.k. . Wld.n I. 5 lono. .499,000 No 100% .499.000 5 from Trarne Way to oreek HU8.M'Rald .. WIden to 418"" .693,000 N. 100% .693,000 5 from Cl.renoot. Verd.Lo.mle Sranch MlnlCh.try Av.hUe - U68.ooo N. 100% $268,000 1 upgrade exlltlng roedwey Elm 51. . Acqulr. ROW lor 160,000 N. 100% .50.000 5 widening Hedcyan Rd. -Aoqulr. ROW for UOO,OOO No 100% UOO,OOO 5 wld.nlng . TOTAL .8,764,000 .8,303,600 Sources: Comprflhonsi". South CountJl Tr.me Mod", end Study, Fin'" Report, November 1992. City of Arroyo O,..nd. CIrculation S"mttnt af the a_n.,'" PfM. City of Arroyo Orande Publlo Works Department. CeUtor"l. Stete Oepartment of Transportation fealtrens), Prlbrily 1-5 1 . Hlgh..t 3 . Mod.rte S . Lowelt ~ - , ,', Resolution No. 3021 EXlIIBn' "B" CITY OF ARROYO GRANDE TRANSPORTATION FACILITY IMPACT FEES Av..rag.. Traffic. Land Us.. Dally Impact F.... Trios Sinal.. Familv D..tach..d 10 S 538.22 Single Family Attach..d (Condos & . 7 $ 376.75 Duolexesl ., .. , Multi-Famllv Units 6.1 $ 328.31 Mobile Homes/Trail..rs 4.8 $ 258.34 Commercial R..tail (p..r 1,000 40.7 $2,190.55 sa.ft.l Commercial Service (per 1,000 50 $2,691.09 sa.ft.l Industrial lo..r 1.000 sa. ft. \ 5.5. $ 296.02 Offic.. Iner 1,000 s<l.ft.1 20 $1.076.44 Misce11an..ous us..s - Us.. ITS --- $ 53.82 Manual, for specific use. per ADT . ., " . ,- Resolution ,No. 3021 I, NAOCY A. DAVIS, City Clerk of the City of Arroyo Grande, County of San Luis Obispo, State of California, do hereby certify under penalty of perjury that the foregoing Resolution No. , is a true, full and correct copy of said Resolution passed and adopted at a regular meeting of said Council on the 2200 day of March, 1994. WI'l'NESS my hand and the Seal of the City of Arroyo Grande affixed this 31stday of March, 1994. '-Y~7!a..~ CITY CLERK ' .. . . - B.c. MINUTES REGULAR MEETING OF THE CITY COUNCIUREDEVELOPMENT AGENCY TUESDAY, JUNE 28, 2005 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. CALL TO ORDER Mayor Pro TemlVice Chair Costello called the Regular City CounciVRedevelopment Agency meeting to order at 7:05 p.m. 2. ROLL CALL City CounciVRDA: CounciVBoard Members Dickens, Guthrie, Arnold, and Mayor Pro TemlVice Chair Costello were present. Mayor/Chair Ferrara was absent. City Staff Present: City Manager Adams, City Attorney Carmel, Director of Administrative Services/City Clerk Wetmore, Chief of Police TerBorch, Director of Financial Services Pillow, Director of Public Works/City Engineer Spagnolo, Dire.ctor of Community Development Strong, Assistant Planner Foster, and Assistant Planner Bergman. 3. FLAG SALUTE Homer Clees, representing Knights of Columbus, led the Flag Salute. 4. INVOCATION Pastor Richard Scharn delivered the invocation. 5. SPECIAL PRESENTATIONS 5.a. Mayor's Commendation Recognizing Greg Nester, Nester Construction and The Greater Plsmo Beach Kiwanis Club for Contributions to the "Let There Be Lights" Program. Mayor Pro Tem Costello presented a Mayor's Commendation recognizing The Greater Pismo Beach Kiwanis Club for contributions made to the "Let There Be Lights" Program. Matt Rice, representing Greater Pismo Beach Kiwanis Club, accepted the commendation. Mr. Greg Nester was not present; therefore, staff indicated this presentation would be rescheduled for a future Council meeting. 6. AGENDA REVIEW 6.a. Resolutions and Ordinances Read In Title Only Council Member Guthrie' moved, Council Member Dickens seconded, and the motion passed unanimously that all resolutions and ordinances presented at the meeting shall be read in title only and all further reading be waived. 7. CITIZENS' INPUT. COMMENTS. AND SUGGESTIONS None. 8. CONSENT AGENDA Prior to consideration of the Consent Agenda, Mayor Pro TemlVice Chair Costello requested that Item 8.n. be pulled and CounciVBoard Member Arnold requested that Item 8.0. be pulled. CITY COUNCIUREDEVELOPMENT AGENCY MINUTES JUNE 28, 2005 PAGE 2 CounciVBoard Member Dickens moved, and Council/Board Member Arnold seconded the motion to approve Consent Agenda Items a.a. through 8.p., with the exception of Items 8.n. and 8.0., as . recommended. The motion carried on the following roll.call vote: AYES: Dickens, Arnold, Guthrie, Costello NOES: None ABSENT: Ferrara 8.a. Cash Disbursement Ratification. Action: Ratified the listings of cash disbursements for the period June 1, 2005 - June 15, 2005. 8.b. Consideration of Statement of Investment Deposits. Action: Received and filed the report of current investment deposits as of May 31, 2005. 8.c. Consideration of Agreement with the Credit Bureau of San Luis Obispo and Santa Barbara Counties for Collection Services. Action: Authorized the Financial Services Director to execute an Agreement with the Credit Bureau of San Luis Obispo and Santa Barbara Counties to provide collection services for seriously delinquent utility accounts. 8.d. Consideration of Increase In Mileage Reimbursement Rate for Employees and Volunteers [COUNCIURDA). Action: Established $.405 per mile as the employee/volunteer mileage reimbursement rate for FY 2005-06. 8.e. Consideration of Approval of Minutes. Action: Approved the minutes of the Regular City CounciVRedevelopment Agency Meeting of May 24, 2005 as submitted. 8.f. Consideration of Resolution Amending the City of Arroyo Grande's Public Agency Retirement Service (PARS) Alternative Retirement System. Action: Adopted Resolution No. 3854 amending the City's PARS alternate retirement system. 8.g. Consideration of Salary and Benefit Adjustments for Management Employees. Action: Adopted Resolution No. 3855 adopting salary adjustments for management employees for FY 2005-06. 8.h. Consideration of Compensation Adjustment for Part-time Employees. Action: Adopted Resolution No. 3856 adopting a salary and benefit program for part-time employees for FY 2005-06. 8.1. Consideration of Temporary Use Permit No. 05-011 (4th of July Village Celebration) Authorizing the Use of City Property, Closure of a City Street, Waiving of Permit Fees and Adding the Celebration to the List of Events that are Eligible for a Waiver of Permit Application Fees. Action: Adopted Resolution No. 3857 authoriZin~ the use of City property, closure of a City street, waiver of permit fees and adding the 4 of July Village celebration to the list of events that are eligible for a waiver of permit application fees. 8.j. . Consideration of Temporary Use Permit No. 05-008 to Authorize the Use of City Property, Close City Streets, and Waive a Portion of Police Service Fees for the Annual Arroyo Valley People's Choice Car Show on July 30, 2005. Action: Adopted Resolution No. 3858 authorizing the use of City property, closure of City streets, and waiver of a portion of police service fees for the Annual Arroyo Valley People's Choice Car Show on July 30, 2005. ---- CITY COUNCIUREDEVELOPMENT AGENCY MINUTES JUNE 28, 2005 PAGE 3 8.k. Consideration of an Award of Contract to Papich Construction for Construction of the Wilton Place Paving Project, PW 2005-03. Action: 1) Awarded a contract for the construction of the Wilton Place Paving Project, PW 2005-03 to Papich Construction in the amount of $177,723.40; 2) Authorized the City Manager to approve change orders not to exceed the contingency of $8,886.17 for use only if needed for unanticipated costs during the construction phase of the project; and 3) Transferred $72,109.57 from the Pavement Management Program Fund and $15,000 from the Water Fund to the Wilton Place Paving Project. 8.1. Consideration of Acceptance of Public Improvements for Tract 2306 - South Alpine Street. Action: Adopted Resolution No. 3859 accepting the public improvements for Tract 2306. 8.m. Consideration of Approval of J:'lnal Tract. Map 2669; Subdividing a .94 Acre Residential Parcel Into Six Residential Parcels, Two Mixed-Use Parcels, and One Common Parcel Located at the Northwest Corner of Nevada and Le Point Streets. Action: Approved Final Tract Map 2669, subdividing a .94-acre parcel into six (6) residential parcels, two (2) mixed-use parcels, and one (1) common parcel. 8.p. Consideration of Approval of Stipulation for Entry of Judgment In Santa Maria Groundwater Litigation (Santa Clara County Superior Court Case No. CV 770214). Action: Approved and authorized the Mayor. to Execute the Stipulation for Entry of Judgment regarding the Santa Maria Groundwater Litigation. 8.0. Consideration of Approval of Final Tract Map 2616; Camino Mercado Senior Condominiums. Recommended Action: Approve Final Tract Map 2616 which subdivides 3.96 acres into sixty (60) air space condominiums and one (1) senior center. Council Member Arnold stated that he had not voted in favor of converting this project from senior apartments to senior condominiums and he requested a separate roll.call vote. Council Member Guthrie moved to approve Final Tract Map 2616, Council Member Dickens seconded, and the motion carried on the following roll-call vote: AYES: Guthrie, Dickens, Costello NOES: Arnold ABSENT: Ferrara 8.n. Consideration to Install a Crosswalk and Stop Signs on James Way at the Intersection of Rodeo Drive and Remove the Existing Stop Sign and Crosswalk on James Way at the Intersection of Hidden Oaks. Recommended Action: Approve an all-way stop at the intersection of James Way and Rodeo Drive; and remove the existing stop signs, advanced lighting assemblies, and the crosswalk on James Way at the Hidden Oak Road Intersection. Mayor Pro Tem Costello invited comments from those in the audience who wished to speak on the matter. Steven Hauck, President of Village Glen Homeowners Association (HOA), spoke on behalf of the HOA, its Board of Directors and the 39 homeowners in Village Glen. He stated that the CITY COUNCIUREDEVELOPMENT AGENCY MINUTES JUNE 28, 2005 PAGE 4 proposed changes would present a significant safety risk to the residents in the neighborhood and requested that the stop sign at James Way and Hidden Oak be retained. He spoke in support of the installation of additional stop signs at Rodeo Drive and James Way. He referred to the vacant Hidden Oaks site and commented that the development status of the site is unknown. He requested that the proposed change be postponed until there has been a final determination on the development of the Hidden Oaks site. He also referred to the lack of. striping on James Way between Hidden Oak and Talley Ho and requested that this portion of James Way be striped. He concluded by opposing the proposal in its current form. Maraaret Brazil, Arroyo Grande, spoke in opposition to removal of the existing stop signs. Beth Walsh, Arroyo Grande, spoke in opposition to removal of the existing stop signs. Joan Le Grand, Arroyo Grande, spoke in opposition to removal of the existing stop signs. Hearing no further public comments, Mayor Pro Tem Costello closed the public comment period. Council discussion and questions ensued regarding the Village Glen development conditions of approval; approximate distance between Village Glen and Hidden Oak; line of sight issues; Caltrans criteria for crosswalks; street classifications and why James Way was designated a collector street; and striping on James Way. Council comments included support for establishing stop signs at James Way and Rodeo Drive to facilitate safe access to Rancho Grande Park and not to remove the existing stop signs at James Way and Hidden Oak until more information is available regarding potential development of a school site at Hidden Oak. Council Member Dickens moved to adopt a Resolution as follows: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ESTABLISHING STOP SIGNS ON JAMES WAY AT RODEO", as amended, deleting the reference for removing existing signs on James Way at Hidden Oak Road. Council Member Arnold seconded, and the motion carried on the following roll-call vote: AYES: Dickens, Arnold, Guthrie, Costello NOES: None ABSENT: Ferrara 9. PUBLIC HEARINGS 9.a. Consideration of an Amendment to the 2000 and 2001 Consolidated Action Plan to Reallocate a Portion of Proaram Years 2000 and 2001 Communltv Develooment Block Grant (CDBG) Funds (STRONG) Assistant Planner Bergman presented the staff report and recommended the Council adopt a Resolution authorizing and recommending the Board of Supervisors of the County of San Luis Obispo reallocate a portion of Program Years 2000 and 2001 Community Development Block Grant funds. Assistant Planner Bergman responded to questions from Council on how the two organizations were selected for funding. Mayor Pro Tem Costello opened the public hearing and invited comments from those in the audience who wished to be heard on the matter. -.. CITY COUNCIUREDEVELOPMENT AGENCY MINUTES JUNE 28, 2005 . PAGE 5 Rae Flemina, EOC Director of Health Services, spoke of the funding needs for the senior health programs. She indicated that the EOC receives reimbursement from the State for clinic services; therefore, she requested approval of the request for funding the senior programs. No further public comments were received and Mayor Pro Tem Costello closed the public hearing. Council Member Dickens moved to adopt a Resolution as follows: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AUTHORIZING AND RECOMMENDING THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN LUIS OBISPO REALLOCATE A PORTION OF PROGRAM YEARS 2000 AND 2001 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS". Council Member Guthrie seconded, and the motion carried on the following roll.call vote: AYES: Dickens, Guthrie, Arnold, Costello NOES: None ABSENT: Ferrara 10. CONTINUED BUSINESS None. 11. NEW BUSINESS .~ 11.a. Presentation and Progress Report by the Land Conservancy of San Luis Obispo County Regarding Agricultural Conservation Program. Assistant Planner Bergman introduced Robert Hill, Director of Conservation Programs of the Land Conservancy of San Luis Obispo County, who presented a status report on the Agricultural Conservation Program. He gave an overview of the Land Conservancy's tasks, including project planning and development of acquisition criteria; landowner outreach efforts;. and providing agricultural conservation easement transaction assistance. He displayed aerial maps with views of Arroyo Grande Valley, Upper La Cienaga Valley, and Lower La Cienaga Valley; identified priority areas for conservation, identified existing Williamson Act and conservation easement parcels, as well as Williamson Act non-renewal parcels; identified soils classifications (Class 1, 2, 3); and identified major streams. Ms. Tamara Polin reviewed criteria currently under consideration and requested the Council to provide comments on what areas should be identified as high priority, should more areas be added, and how should the areas be prioritized. Mr. Hill reviewed the draft letter, which would be sent to agricultural landowners informing them of the conservation program, and requested suggestions/guidance from the City Council. Mr. Hill then responded to questions from Council. Council Member Dickens requested that proximity to other conservation easements be added as additional criteria for the agricultural conservation program priority system. He also referred to the draft letter and suggested that more emphasis be given on recognizing farmers as protectors of the land, recognizing difficulty with farming regulations, and identifying their options. He requested that all references to the word "forever" be omitted from the letter. CITY COUNCIUREDEVELOPMENT AGENCY MINUTES JUNE 28, 2005 PAGE 6 Council Member Arnold acknowledged that the draft letter indicates that there are a variety of other agencies and groups that may be able to assist with conservation efforts and requested that language be added to the letter stating that the City can provide that information. Council Member Guthrie requested that parcels immediately south of La Cienaga Valley be included in Priority Area #1. He agreed with the criteria as presented. Mayor Pro Tem Costello requested including Meadow Creek for reference purposes on the Stream Map. He supported the proposed criteria and priority rankings. He referred to the draft letter and commented that the partnership aspect should be stressed. Mayor Pro Tem Costello invited comments from those in the audience who wished to speak on the matter, and upon hearing none, he closed the public comment period. Following Council comments, staff was directed to work with the Land Conservancy to redraft the proposed letter and redistribute it to City Council for further comment. There was no formal action on this item. 11.b. Consideration of Memorandum of Understandina (MOm Between the Citv of Arroyo Grande and SLO Green Build (STRONG) Assistant Planner Foster presented the staff report. He explained that SLO Green Build's mission is to promote sustainable building techniques; provide building professionals with the proper tools to build sustainable projects; and to support and help develop public policy which advocates for sustainable building practices. Staff recommended that the Council approve and authorize the Mayor to sign a Memorandum of Understanding (MOU) between the City and SLO Green Build. In response to a question from Council Member Arnold, Assistant Planner Foster clarified that SLO Green Build has requested a one-time allocation of $2,000 from the City to be used to develop the Green Build Program: Mayor Pro Tem Costello invited comments from those in the audience who wished to speak on the matter, and upon hearing none, he closed the public comment period. Following Council comments in support of the Green Build program, Council Member Arnold moved to approve and authorize the Mayor to sign an MOU between the City of Arroyo Grande and SLO Green Build. Council Member Guthrie seconded, and the motion carried on the following roll-call vote: AYES: Arnold, Guthrie, Dickens, Costello NOES: None ABSENT: Ferrara 12. CITY COUNCIL REPORTS a. MAYOR TONY M. FERRARA: (ABSENT) (1) San Luis Obispo Council of Governments/San Luis Obispo Regional Transit Authority (SLOCOGlSLORTA). None. (2) South San Luis Obispo County Sanitation District (SSLOCSD). None. (3) Other. None. CITY COUNCIUREDEVELOPMENT AGENCY MINUTES JUNE 28, 2005 PAGE 7 b. MAYOR PRO TEM JOE COSTELLO: (1) Zone 3 Water Advisory Board. No report. (2) County Water Resources Advisory Committee (WRAC). No report. (3) Air Pollution Control District (APCD). No report. (4) Fire Oversight Committee. No report. (5) Other. None. c. COUNCIL MEMBER JIM DICKENS: (1) South County Area Transit (SCAT). Approved Budget; Increased SCAT services from the Village to Strother Park, which will serve the nearby senior mobile home park. (2) South County Youth Coalition. None. (3) Other. None. d. COUNCIL MEMBER JIM GUTHRIE: (1) Economic Vitality Corporation (EVC). Attended a retreat to set future direction, objectives, and work plan; John Dunn is still serving as the temporary Executive Director. (2) Other. None. e. COUNCIL MEMBER ED ARNOLD: (1) Integrated Waste Management Authority Board (IWMA). No report. (2) California Joint Powers Insurance Authority (CJPIA). No report. (3) County Water Resources Advisory Committee (WRAC). Reported on County's action to delay by one year maintenance responsibility for Zone 1/1A; Attended a desalination seminar in Long Beach; Reported that the Central Coast has not utilized Proposition 50 funds and since funds are available, will be looking into for a feasibility study. 13. CITY COUNCIL MEMBER ITEMS: None. 14. CITY MANAGER ITEMS: None. 15. COUNCIL COMMUNICATIONS: None. 16. STAFF COMMUNICATIONS: None. 17. COMMUNITY COMMENTS AND SUGGESTIONS: Steve Ross, Arroyo Grande, acknowledged comments made during consideration of Item 11.a. . regarding the Agricultural Conservation Program and commented that farmers are hesitant to tie up their land in perpetuity. 18. ADJOURNMENT There being no further business before the City Council, Mayor Pro Tern Costello adjourned the meeting at 8:50 p.m. CITY COUNCIUREDEVELOPMENT AGENCY MINUTES JUNE 28, 2005 PAGE 8 Joe Costello, Mayor Pro TemlVice Chair ATTEST: Kelly Wetmore, City Clerk/Agency Secretary (Approved at CC Mtg ) MINUTES SPECIAL MEETING OF THE CITY COUNCIL TUESDAY, JULY 12,2005 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. SPECIAL CITY COUNCIL MEETING: Mayor Ferrara called the meeting to order at 6:30 p.m. Council Member Dickens, Council Member Guthrie, Council Member Arnold, City Manager Adams, City Attorney Carmel, Chief of Police TerBorch, and Human Resources Manager Sisko were present. Mayor Pro Tem Costello was absent. 2. PUBLIC COMMENT: None. 3. CITY COUNCIL CLOSED SESSION: a. CONFERENCE WITH LABOR NEGOTIATOR pursuant to Government Code Section 54957.6: Agency Negotiators: Rick T erBorch and Karen Sisko Represented Employees: Service Employees International Union (SEIU) - Local 620 4. RECONVENE TO OPEN SESSION: Mayor Ferrara announced that there was no reportable action from the closed session. 5. ADJOURNMENT TO REGULAR CITY COUNCIL MEETING: The meeting was adjourned at 7:00 p.m. Tony Ferrara, Mayor ATTEST: Kelly Wetmore, City Clerk MINUTES REGULAR MEETING OF THE CITY COUNCIUREDEVELOPMENT AGENCY TUESDAY, JULY 12, 2005 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. CALL TO ORDER Mayor/Chair Ferrara called the Regular City Council/Redevelopment Agency meeting to order at 7:05 p.m. 2. ROLL CALL City Council: CounciVBoard Members Dickens, Guthrie, Arnold, and Mayor/Chair Ferrara were present. Mayor Pro TemlVice Chair Costello was absent. City Staff Present: City Manager Adams, City Attorney Carmel, Director of Administrative Services/City Clerk Wetmore, Director of Public Works/City Engineer Spagnolo, Director of Financial Services Pillow, Director of Building and Fire Fibich, Director of Community Development Strong, . and Assistant Planner Bergman. 3. FLAG SALUTE Mayor/Chair Ferrara led the Flag Salute. 4. INVOCATION Pastor Robert Banker, Open Door Church, Oceano, delivered the invocation. 5. SPECIAL PRESENTATION 5.a. Mayor's Commendation Recognizing Greg Nester, Nester Construction for Contribution to the "Let There Be Lights" Program. Mayor Ferrara deferred consideration of the scheduled presentation as Mr. Nester was not present. 6. AGENDA REVIEW 6.a. Resolutions and Ordinances Read in Title Only. Council Member Arnold moved, Council Member Guthrie seconded, and the motion passed unanimously that all resolutions and ordinances presented at the meeting shall be read in title only and aU further reading be waived. 7. CITIZENS' INPUT. COMMENTS. AND SUGGESTIONS Steve Thaver, representing Big Brothers & Big Sisters of San Luis Obispo County, gave a brief background of the organization and presented a plaque on behalf of the Board of Directors, staff, and youth to the Mayor and City Council thanking the City for its service and support. 8. CONSENT AGENDA Mayor Ferrara requested that item 8.g. (Consideration to Approval of a Services Agreement with Tuckfield & Associates to Prepare a Storm Water Study) be pulled for questions. Mayor Ferrara asked if the proposed study could be performed in-house and asked if there was potential grant money available to fund the study. Director Spagnolo responded that $30,000 CITY COUNCIUREDEVELOPMENT AGENCY MINUTES JULY 12, 2005 PAGE 2 had been budgeted for the Water Master Plan Update and that some of those monies would be used to fund the storm water study. City Manager Adams added that the study would also consider the establishment of a new development impact fee and that State law requires a comprehensive study to be completed prior to establishment of any new development impact fees. CounciVBoard Member Dickens moved, and CounciVBoard Member Guthrie seconded the motion to approve Consent Agenda Items 8.a. through 8.1., with the recommended courses of action. The motion carried on the following roll-call vote: AYES: Dickens, Guthrie, Arnold, Ferrara NOES: None ABSENT: Costello 8.a. Cash Disbursement Ratification. Action: Ratified the listing of cash disbursements for the period June 1, 2005 through June 30, 2005. S.b. Consideration of Rejection of Claim Against City - S. Bundren. Action: Rejected claim. S.c. Consideration of Authorization to Solicit Bids for 4x4 Utility Passenger Vehicle and to Declare Surplus and Sell Used Command Vehicle to Templeton Fire Department. Action: Authorized the solicitation of bids for new vehicle and adopted Resolution No. 3862 declaring surplus property to be transferred to the Community Services District of Templeton consisting of one 1995 Chevrolet Suburban Fire Command Vehicle. 8.d. Consideration of a Resolution Revising the Job Description for the Fleet Maintenance Coordinator Position. ' Action: Adopted Resolution No. 3863 revising the job description for the Fleet Maintenance Coordinator position. S.e. Consideration of Agreement with Rutan & Tucker, LLP to Provide Special Counsel Legal Services to the City and Redevelopment Agency. [COUNCIURDA] Action: 1) Authorized the City Manager/Redevelopment Agency Executive Director to terminate the existing contract; and 2) Authorized the Mayor/Redevelopment Agency Chair to execute the Agreement with Rutan & Tucker, LLP for redevelopment special counsel legal services. 8.1. . Consideration of an Award of a Consultant Services Agreement with Tenera Environmental to Provide Services in Conjunction with the Annual Creek Cleaning Program. Action: 1) Approved a Consultant Services Agreement with T enera Environmental for services in conjunction with the annual creek cleaning program in the amount of $14,260; and 2) Authorized the Mayor to execute the Consultant Services Agreement. S.g. Consideration to Approval of a Services Agreement with Tuckfield & Associates to Prepare a Storm Water Study. Action: 1) Approved a Services Agreement with Tuckfield & Associates in the amount of $19,900 to prepare a Storm Water Study; and 2) Appropriated $19,000 from the Drainage Fund for the Storm Water Study. S.h. Consideration of Acceptance of the Creekside Path, Phase III lighting Project, PW 2004-03. Action: 1) Accepted the project improvements, as constructed by Lee Wilson Electric, Inc. in accordance with the plans and specifications; 2) Directed staff to file a Notice of CITY COUNCIUREDEVELOPMENT AGENCY MINUTES JULY 12, 2005 PAGE 3 Completion; and 3) Authorized release of retention thirty-five (35) days after the Notice of Completion has been recorded, if no liens have been filed. 8.i Consideration of Approval of Final Tract Map 2310 - Phase I (S&SHomes); Subdividing 2.1 Acres into Thirteen Residential Parcels. Action: Approved Final Tract Map 2310 - Phase I, subdividing 2.1 acres into thirteen (13) residential parcels. 5. SPECIAL PRESENTATION 5.a. Mayor's Commendation Recognizing Greg Nester, Nester Construction for Contribution to the "Let There Be Lights" Program. Upon the arrival of Mr. Greg Nester, Mayor Ferrara presented him with a Mayor's Commendation for his generous contribution to the "Let There Be Lights" Program. 9. PUBLIC HEARINGS 9.a. Consideration of an Ordinance Adding Chapter 2.21 to Title 2 of the Arroyo Grande Municipal Code Entitled "Historical Resources Committee," and Amending Chapter 16.04 "Definitions" and Adding Section 16.16.211 to Title 16 of the Arroyo Grande Municipal Code Entitled "Minor Use Permit - Historical Resource Determination" and a Resolution Establishing Appointment Procedures for the Historical Resources Committee (HRC), Establishing a Historic Resources Committee and a Historic Designation Process. Assistant Planner Bergman presented the staff report and recommended that the Council continue the public hearing item to the Regular City Council meeting of August 9, 2005 so that additional notice could be provided. Mayor Ferrara opened the public hearing and invited comments from those in the audience who wished to be heard on the matter. The following members of the public spoke in support of the proposed establishment of a Historical Resources Committee: Kathleen Sullivan, Gordon Bennett, and Sandra Loomis Cabasi. No further public comments were received and the Mayor closed the public hearing. Council discussion and comments ensued concerning the proposed qualifications for members serving on the Historic Resources Committee; acknowledgment that there were many people in the South County, especially those belonging to the South County Historical Society, who do not necessarily live within the City limits but have valuable historical knowledge. Additionally, Mayor Ferrara requested that preamble language in the proposed Ordinance be modified to be more definitive since it is not clearly specified who determines feasibility when it relates to preserving historic structures. Following Council comments in support of the proposed Ordinance, staff was directed to modify the criteria for selecting. Historical Resources Committee members to require only historical preservation knowledge and/or experience and eliminate requirements for technical experience; CITY COUNCIUREDEVELOPMENT AGENCY MINUTES JULY 12, 2005 PAGE 4 to specify that members are not required to live in the City of Arroyo Grande; and to eliminate any restrictions on members concurrently serving on other boards and commissions. Council Member Guthrie moved to continue consideration of an Ordinance adding Chapter.2.21 to Title 2 of the Arroyo Grande Municipal Code entitled "Historical Resources Committee," ana' - amending Chapter 16.04 "Definitions" and adding Section 16.16.211 to Title 16 of the Arroyo Grande Municipal Code Entitled "Minor Use Permit - Historical Resource Determination" and a Resolution Establishing Appointment Procedures for the Historical Resources Committee (HRC), Establishing a Historic Resources Committee and a Historic Designation Process to the Regular City Council meeting of August 9, 2005. Council Member Arnold seconded, and the motion carried on the following roll-call vote: AYES: Guthrie, Arnold, Dickens, Ferrara NOES: None ABSENT: Costello 10. CONTINUED BUSINESS 10.a. Consideration of Fleet Maintenance Study. Director of Public Works Spagnolo presented the staff report which included recommendations and findings from the 2004 Fleet Maintenance Study which was completed to evaluate the City's vehicle maintenance operations. He>gave a brief overview of the Alternatives identified in the Study and recommended the Council provide staff with comments or direction. Mayor Ferrara invited comments from those in the audience who wished to be heard on the matter, and upon hearing no public comments he closed the public comment period. Council Member Guthrie commented that based on his review of the Study, there was potential for significant cost savings and an improved level of service for the City's fleet. He observed that if the City outsourced fleet maintenance to the City of San Luis Obispo, there would be access to a more sophisticated system at no cost to the City. He referred to the goal of developing a regional program which would provide instant access to equipment and services the City is looking for, such as experienced mechanics, preventative maintenance programs, and a more sophisticated system, and that it would provide an opportunity for the City to be a leader in the South County in establishing such a program. He acknowledged the concern with shuttling cars; however, noted that those concerns were not insurmountable. He suggested that the level of service be reviewed on a broader scale when fleet maintenance is reviewed again in the future. Council Member Dickens agreed that cost savings through consolidation should be reviewed sometime in the future; however, the City was not there yet. He supported broadening the definition of level of service. He did not support any change in the fleet maintenance program at this time and noted that the recent change of staffing would result in cost savings in the next fiscal year. Council Member Arnold suggested that a pilot program for outsourcing to the City of San Luis Obispo be instituted using one specific fleet of vehicles, such as the Parks and Recreation Department vehicles. City Manager Adams responded that the City of San Luis Obispo could be used as an additional vendor for certain vehicles: Council Member Arnold stated that since the CITY COUNCILJREDEVELOPMENT AGENCY MINUTES JULY 12,2005 PAGE 5 City's goal is to move forward in that direction, he could support using the City of San Luis Obispo as a vendor to test the program on a smaller scale. Mayor Ferrara noted that the City's Public Works Department services all City vehicles except Fire. He supported Council Member Arnold's suggestion for outsourcing on a trial basis in an effort to move toward a regional fleet maintenance program. He supported leaving the door open to new ideas for fleet maintenance; however, he supported moving forward with the maintenance program currently in place. There was no formal action on this item. 11. NEW BUSINESS 11.a. Consideration of Approval of a Water Wheeling Agreement with the Oceano Community Services District (OCSD) for the Christie Family Subdivision. Director of Public Works Spagnolo presented the staff report and recommended the Council: 1) Approve the Water Wheeling Agreement with the OCSD for the Christie Family Subdivision; and 2) Approve the proposed modifications to the City's Policy regarding water wheeling agreements for future requests to enter into water wheeling agreements. Director Spagnolo responded to questions from Council regarding County zoning on the subject property (RS); future development of the subject property; whether the City was presented with a grading plan (no); staff response to a letter from the County which expressed concerns about available water sources; and clarification regarding fire flow requirements. Mayor Ferrara invited comments from those in the audience who wished to be heard on the matter. Terrv Orton, Westland Engineering, clarified that the proposed policy change ("the request for service is not for the purpose of enabling new development') is consistent with their request as there would be one meter to serve four lots. He explained that the need for wheeling water from Oceano Community Services District arose because an adjacent property owner did not want to build a larger 90,000-gallon water tank to serve the homes in the immediate neighborhood. Robert Christie, emphasized that they had spent seven years sorting out this issue and explained that it had originally been planned to use the existing well to serve the development. He stated that the existing well is used for domestic water use and he stated that additional capacity for fire protection is needed for their property as the adjacent property owner would not agree to build a larger tank. Upon hearing no further public comments, Mayor Ferrara closed the public comment period. Extensive discussion ensued regarding availability of water for domestic use versus fire flow purposes; as well as what water sources are legally available to provide service to the Christie property. Following Council discussion and comments, Council Member Arnold stated he could approve this request as presented with the stipulation that the revised policy is approved so that the City is no longer providing water outside the City's Sphere of Influence. CITY COUNCILJREDEVELOPMENT AGENCY MINUTES JULY 12, 2005 PAGE 6 Council Member Dickens noted that there were two issues: 1) fire protection and 2) the City's land use policies. He acknowledged that the City has in place a Mutual Aid Response Agreement for fire services and that it was likely that the City Fire Department would serve the City's fringe areas as a first responder. He felt that the problem could be easier solved because if the applicant was willing to pay for infrastructure to bring in municipal water, then that same infrastructure could be connected to a fire hydrant or water tank. He stated the other issue is that the City's land use policies do not allow this [he cited General Plan LU (Fringe) 1-1]. He stated that the applicant should be required to provide a fire hydrant. He stated he could not support the proposed Water Wheeling Agreement; however, he could support adding the two proposed criteria to the existing policy so that it is more consistent with land use policies concerning the City's fringe areas. Council Member Guthrie asked if there was a cap on the amount of water that Oceano would provide to the properly. Staff responded that water supply would be monitored. Council Member Guthrie acknowledged the need to provide fire protection to the City's fringe area to help protect the nearby City residents who would be affected by fire in the area and suggested that a fire hydrant be installed. He also requested clarification regarding the proposed modifications to the policy amendment which states that the property to be served has existing structures. Mayor Ferrara agreed that water being transferred must be monitored closely. With regard to fire protection, he commented that in an emergency situation, the City would connect to the closest water supply. He suggested the use of quick access flow meters on fire hydrants. He stated he could support this request as well as the proposal to modify the City's policy regarding future water wheeling agreements. , Council Member Dickens moved to deny the Water Wheeling Agreement as proposed, but direct staff to work with the Christies and other property owners in the area to formulate adequate fire protection. Council Member Guthrie seconded the motion. Council Member Dickens amended the motion to include approval of the proposed modifications to the City's policy regarding water . wheeling agreements as follows: 1) The properly to be serviced has existing structures; and 2) The request for service is not for the purpose of enabling new development. Council Member Guthrie seconded, and the motion failed on the following roll-call vote: AYES: Dickens, Guthrie NOES: Arnold, Ferrara ABSENT: Costello Council.Member Arnold moved to approve the Water Wheeling Agreement as proposed and to approve the proposed modifications to the City's policy regarding water wheeling agreements as follows: 1) The property to be serviced has existing structures; and 2) The request for service is not for the purpose of enabling new development. Mayor Ferrara seconded the motion. City Attorney Carmel indicated that there were some mistakes in the Agreement and requested that the motion be modified to indicate that the Agreement would be subject to modifications and approval by the City Attorney. Council Member Arnold agreed to the amended motion, Mayor Ferrara seconded, and the motion failed on the following roll-call vote: AYES: Arnold, Ferrara NOES: Dickens, Guthrie ABSENT: Costello CITY COUNCIUREDEVELOPMENT AGENCY MINUTES JULY 12, 2005 PAGE 7 Council Member Arnold moved to continue this item to the next regular City Council meeting of August 9, 2005. Mayor Ferrara seconded, and the motion failed on the following roll-call vote: AYES: Arnold, Ferrara NOES: Dickens, Guthrie ABSENT: Costello Council Member Guthrieffioved to continue this item to the next regular City Council meeting of August 9, 2005 with the provision that staff investigate the potential for providing fire service only. Council Member Arnold seconded, and the motion passed on the following roll-call vote: AYES: Guthrie, Arnold, Ferrara NOES: Dickens ABSENT: Costello 12. CITY COUNCIL MEMBER ITEMS None. 13. CITY MANAGER ITEMS None. 14. COUNCIL COMMUNICATIONS Council Member Guthrie inquired as to the status of the proposed revised tree ordinance. City Manager Adams responded that the proposed ordinance would be presented to the Parks and Recreation Commission within the next month. Council Member Dickens commended staff for the redraft of the conservation easement letter that will be sent out by the Land Conservancy of San Luis Obispo. Council Member Dickens requested, and the Council concurred, that an item be placed on a future agenda for staff to present issues identified regarding creek setback requirements and policies. 15. STAFF COMMUNICATIONS None. 16. COMMUNITY COMMENTS AND SUGGESTIONS Steve Ross, Arroyo Grande, commented on Item 9.a. (Historical Resources Committee) and stated it was important to have technical expertise available as a resource to the Committee to assist in determining whether structures are historical. He supported the City's decision to establish a Historical Resources Committee. 17. ADJOURNMENT There being no further business to come before the City Council, Mayor Ferrara adjourned the meeting at 9:35 p.m. ~ --- - CITY COUNCIUREDEVELOPMENT AGENCY MINUTES JULY 12, 2005 PAGE 8 Tony Ferrara, Mayor/Chair ATTEST: Kelly Wetmore, City Clerk/Agency Secretary (Approved at CC Mtg ) .--.---- - - - B.d. MEMORANDUM TO: CITY COUNCIL FROM: DON SPAGNOLO, DIRECTOR OF PUBLIC WORKS/CITY ENGINEERo&I SUBJECT: CONSIDERATION OF APPROVAL OF PLANS AND SPECIFICATIONS FOR EAST GRAND AVENUE / HALCYON TRAFFIC SIGNAL UPGRADE PROJECT, PW 2005-01 DATE: AUGUST 9, 200S RECOMMENDATION: It is recommended the City Council: 1. approve the plans and specifications for the East Grand Avenue / Halcyon Traffic Signal Upgrade Project, PW 2005-01; 2. find that the project is categorically exempt from CEQA pursuant to Section 15301(e); and, 3. direct the Director of Administrative Services to file a Notice of Exemption. FUNDING: The FY 2004/05 Capital Improvement Program includes a total of $166,382 of for the construction of the East Grand Avenue / Halcyon Traffic Signal Upgrade Project. The engineer's estimate for construction is $185,000. The engineer's estimate includes work not anticipated during the preparation of the Capital Improvement Program. Upon receipt and verification of the project bids, any additional funding will be requested for appropriation. DISCUSSION: The project scope of work includes replacing the antiquated signal poles and mast arms, installing a battery back-up system, and replacing the controller equipment. Staff has determined that the project is categorically exempt from CEQA pursuant to Section 15301(e). Construction is expected to begin in January 2006 and be completed by February 2006. CITY COUNCIL CONSIDERATION OF APPROVAL OF PLANS AND SPECIFICATIONS AND AUTHORIZATION. TO SOLICIT BIDS FOR EAST GRAND AVENUE / HALCYON TRAFFIC SIGNAL UPGRADE PROJECT, PW 2005-01 AUGUST 9, 2005 PAGE 2 ALTERNATIVES: The following alternatives are provided for the Council's consideration: . Approve staffs recommendations; . Do not approve staffs recommendations; . Modify as appropriate and approve staff's recommendations; or . Provide direction to staff. Attachments: 1. Project Schedule 2. Notice of Exemption S:\PUBLIC WORKS ENGINEERING SHARED ITEMSICapital Projects\2005lGrand-HaIcyon SignallCouncillAuthorization to Solicit BidslCounciI Memo - Authorization to Solicit Bids.doc ATTACHMENT NO.1 reityof~ (fj~ Tentative Project Schedule For Grand/Halcyon Signal Upgrade Project Project No. PW 2005-01 (350-5637-XXXX) Authorization to Solicit Bids (City Council Meeting) .................................................... August 9, 2005 151 Notice to Bidders................................................................................................ August 12,2005 2nd Notice to Bidders............................................................................................... August 19, 2005 Pre-Bid Conference / Job Walk (Tuesday, 10:00 am, City Council Chambers).................August 30, 2005 Bid Opening (Thursday, 4:00 p.rn. City Council Chambers)........................................ September 13, 2005 Memorandum to Council.......,......................................................................... September 16, 2005 Authorization to Award Contract (City Council Meeting) ........................................ September 27,2005 Notice of Award ............................................................................................... September 28,2005 Notice to Proceed......................................................................................................... October 2005 Contract Completion (145 calendar days)....................................................................... February 2006 Last printed 8/2/05 8:20 AM Notice of Exemption To: Office of Planning and Research From: (Public Agency) City of Arroyo Grande 1440 Tenth Street, Room 121 P.O.'Box 550 Sacramento, CA 95814 Arroyo Grande, CA 93421 [!] ,County Clerk County of San Luis Obispo County Government Center San Luis Obispo, CA 93408 Project Title: East Grand Avenue / Halcvon Road Trafflc Si!lflal UOf!rade Project Project Location - Specific: East Grand A ve / Halcvon Road Intersectioll Project Location - City: Arrovo Gral/de Project Location - County: San Luis ObisDO Description of Project: Trame Sizllal UOf!rade Name of Public Agency Approving Project: City of Arrovo Grande - Public Works Devar/men! Name of Person or Agency Carrying Out Project: Mike Linn P.E. Exempt Status: (check aile) o Ministerial (Section 12080(b)(I); 15268); o Declared Emergency (Sec. 21080(b)(3); 1 5269(a)); o Emergency Project (Sec. 21080(b)(4); 1 5269(b)(c)); [!] Catego'rical Exemption. State type and section number: Section 15301 (ci o Statutory Exemptions. State code number: Reasons Why Project Is Exempt: Proiect involves the uDeradine existine traffic sienal Doles and hard~are. Lead Agency Contact Person: Mike Linn P.E. Area Code/Telephone/Extension: (805) 473-5444 If filed by Applicant: I. Attach a certified document of exemption finding. 2. Has a Notice of Exemption been filed by the public agency approving the project? 00 Yes DNa Signature: Date: Title: Public Works Director I!I Signed by Lead Agency o Date received for filing at OPR: 0 Signed by Applicant "------.---- 8.e. MEMORANDUM TO: CITY COUNCIL , , FROM: DON SPAGNOLO, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER r/fb I SUBJECT: CONSIDERATION OF DISADVANTAGED BUSINESS ENTERPRISE , (DB E) PROGRAM FOR FFY 2005/06 I I DATE: AUGUST 9, 2005 . RECOMMENDATION: It is recommended the City Council approve the submittal of the FFY 2005/06 DBE Program with established Overall Annual DBE Goal to Caltrans by October 1, 2005. I FUNDING: It is anticipated that the following Federal-aid highway funds will be expended in FYY 2005/06: . Farroll Road Rehabilitation Project - Urban State Highway Account (USHA) funds in the amount of $327,000. : Wilton Place Paving Project - Urban State Highway Account (USHA) funds in , . the amount of $50,000. DISCUSSION: On May 24, 2005, the Council approved the submittal of the City's FFY 2004/05 DBE Program with a proposed Overall Annual DBE Goal of 7% to Caltrans. Caltrans reviewed the Program and instructed the City to begin its public review process. The Council also directed the Director of Administrative Services to publish a public notice in the local newspaper in accordance with Section XIV ofthe DBE Program. The notice was published on May 31, 2005 and the public comment period ended July 15, 2005. There were no public comments received by the City. It is recommended the Council approve the City's FFY 2005/06 DBE Program with an established Overall Annual DBE Goal of 2%. The City's FFY 2005/06 DBE Program, proof of publication, and summary of the public participation process are to be submitted to Caltrans by October 1, 2005. I : l , ./ ----- ----"_._- - --~--~ -~-- - --" --.-- CITY COUNCIL CONSIDERATION OF DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM FOR FFY 2004/05 AUGUST 9, 2005 PAGE 2 ALTERNATIVES: The following alternatives are provided for the Council's consideration: - Approve staff's recommendation; - Do not approve staff's recommendation; - Modify as appropriate and approve staff's recommendation; - Provide direction to staff. Attachments: 1. Letter to Caltrans with established overall annual DBE goals. 2. Final Disadvantaged Business Enterprise (DB E) Program for FFY 2005/06. S:IPUBLIC WORKS ENGINEERING SHARED ITEMSIDBE ProgramIDBE Plan FFY 2005- 20061CouncillSummary of Public CornmentlCouncil Memorandum 8-09-2005.doc August 10,2005 Mr. Michael A. Guiliano, P.E., District Local Assistance Engineer Caltrans District 5 50 Higuera Street San Luis Obispo, CA 93401 Subject: Established Annual Overall Disadvantaged Business Enterprise (DBE) Goal Information Dear Mr. Guiliano: The amount of overall goal, methodology, breakout of estimated race-neutral and race-conscious participation, and any DBE program updates are presented herein in accordance with Title 49 of the Code of Federal Regulations Part 26, and as described in the Local Assistance Procedures Manual. The City of Arroyo Grande submits our annual overall goal information (and any needed updates of our DBE program) for your review and comment.. We have established an annual overall DBE goal of 7% for the Federal Fiscal Year 2005/06, beginning on October 1, 2005 and ending on September 30,2006. MethodoloGY The "Utilizing the Bidders List" methodology was used to determine the City of Arroyo Grande's overall goal for Federal Fiscal Year FY 2005/06. i The City of Arroyo Grande elected to utilize the following methodology in establishing the , , I City of Arroyo Grande's Base Figure of relative DBE availability for FFY 2004/05. For the Numerator: DBE Firms in Citv of Arrovo Grande's Bidders List For the Denominator: All Firms in City of Arroyo Grande's Bidders List I , I , I I Mr. Michael A. Guiliano, P.E. August 10, 2005 Page 2 The City of Arroyo Grande calculated its weighted Base Figure by first determining the number of ready, willing and able DBEs in its FY 2004/05 Bidders List by work category, and dividing the number of DBEs by the total number of firms in the same work category. Through this method, the City of Arroyo Grande measured the availability by the number of firms that have directly participated in, or attempted to participate in, City of Arroyo Grande's DOT-assisted contracting in FY 2004/05.Application of this formula yielded the following baseline information: Number of Readv, Willinq and Able DBE's = BASE FIGURE Number of All Ready, Willing and Able Firms The Base Figure resulting from this calculation was determined to be 7%. As this is the first year the City of Arroyo Grande has used this methodology in determining its overall annual DBE goal, it was concluded that there was not enough known relevant evidence at this time to determine the number of ready, willing and able DBEs by work category. Therefore, the Base Figure for FFY 2005/06 was adjusted by dividing the total number ready, willing and able DBEs in the City's FY 2003/04 Bidders List by the number of the total number of firms in the City's FY 2004/05 Bidders List bidders list. DBE Firms in Citv of Arrovo Grande's Bidders List = BASE FIGURE All Firms in City of Arroyo Grande's Bidders List The Base Figure resulting from this calculation was determined to be 7%. Breakout of Estimated Race-Neutral and Race-Conscious Participation Of the overall annual 7% goal for DBE participation, the City of Arroyo Grande projects meeting 4% of the goal utilizing race-neutral methods, including making efforts to assure that bidding and contract requirements facilitate participation by DBEs and other small ! businesses; unbundling large contracts to make them more accessible to small , businesses; encouraging prime contractors to subcontract portions of the work that they might otherwise perform themselves; and providing technical assistance, and other support services to facilitate consideration of DBEs and other small businesses. The remaining 3% of the goal is anticipated to be accomplished through race-conscience measures, which includes establishing contract specific goals on contracts with contracting possibilities, ! when needed, to meet the City's overall annual DBE goal. I I DBE ProQram Updates No changes to report. , , Mr. Michael A. Guiliano, P.E. August 10, 2005 Page 3 Public Participation Process The City of Arroyo Grande has completed its public participation process. A public notice was published on May 31,2005 in the San Luis Obispo Telegragh-Tribune and Five Cities Times-PrEiss-Recorder. The City made available to the public a copy of its FFY 2005/06 DBE Program with "proposed" Overall Annual DBE Goal for 30 days following the date of publication. In addition, the City allowed 45 days following the date of publication (or July / 15, 2004) to receive public comment. No comments were received by the City. A copy of the public notice with proof of publication is included with this letter. Please contact me at (805) 473-5440 or Thomas Korman, Associate Engineer, at (805) 473-5447 if you have any questions regarding this information. Sincerely, Steven Adams City Manager Attachment: Proof of Publication I i , I THE Newspaper of the Central Coast TRIBUNE 3825 South Higuera. Post Office Box 112. San Luis Obispo, California 93406-0112. (805) 781-7800 In The Superior Court of The State of California In and for the County of San Luis Obispo AFFIDAVIT OF PUBLICATION AD #6191867 CITY OF ARROYO GRANDE STATE OF CALIFORNIA, ss. County of San Luis Obispo ...._-.....".;;;.-;-:.:~::c:::-.,:'.:.c:'~::.1 C'C>...:::I'UBUC;.NOnCi:'::.::.,::.. . '::.....f,ITYO~j\R~'t'OGtt~t>l~.......: . 1 am a citizen of the United States and a residentbfthe .:':...:;-::',-,...,....,......;';..-';,..,.;,.",...;.-....\...:,........-........'-'.....';...-;...;......:-......",-.,'..-.-., ,NOT1CE:IS"'\EtteBY:GIVEN..tti..,lheClly..'of County aforesaid; I am oVer the age of eighteen and not Anpyo!:~~e':ha9,i~labJlsh~...l!n....OVeran,Annual <'D_i:!!8~VantllgedJ~uflll'ess:E~t~rise_Goal;';app~cable' interested in the above entitled matter; I am now, and at to,con~rlgopptll1:~nltieuc:heduledto'bes;warded .'dUringthe::perl~:o"~r\1i,,2l)05,thr()u~h.,_,~_ all times embraced in the publication herein mentioned '~m.ber;3C?t\2Q06:,\("T11e,City;()f:;'A~,:.Gran. e's:prp- posed)OVer<1II>'~nlJll!..:' Goal) an'tt.-\It8,":ratlonale';'liere" was, the principal clerk of the printers and publishers of develoPecl,in~nse'to..u.s;;~_~e_rltofiIrans.: ' portatlon's':DI nta~ed':BuSlness..EnterprtSepro','; . THE TRIBUNE, a newspaper of general circulation, g~.._Fln_aJRlJle'(4~C ,RPart~6)andls-availabletor 1 printed and published daily at the City of San Luis In~pection_:for:thlrty" (@).~Yji,foJl~ng:'the,'date ,.'of,j ttusNotlce,~fro"!8:qpa~ITI.'Jo,5:00p..m" f?acific Day- ( Obispo in the above named county and state; that notice Ught :;rlme;,~ M~,n~ay:, through) Fri~IiYj.;a~ _our. principal J at which the annexed clippings is a true copy, was '-:~'.$,fg~~f~~~~.~~~4~:I;I::)~.r}rt'(:':,i"-:>:,::i-:>',,:.:.......... ,'.; "\ published in the above-named newspaper and not in any '::.,;::Offloe'of:Adm!nfslratiye~h1~:..:":",:,:-.:_,::;:d ,: ;:,:: 214,:Eastl3ranch_Stre_~/':r';;:"-.,::..:::::' '",_,:_:' -. , supplement thereof - on the following dates, to-wit :;':,:i.:/i~:;&(=~~~99\;..f;<:~~,::'7t,r"..:'.'\_;:{:~:.:',{:;:::: MAY 31, 2005 that said newspaper was duly and .,<;,::.~e~.,Ad~~';:~,arrovOgrandEt.,org...._..-,'-;;:-: . regularly ascertained and established a newspaper of ;'.:..'i'>.!;y;,"~i:;:}C,:,:.\,'.<>"n;;:t:",:..%\~:':..:.;"'~:'\"-'.'::";';::':''':''';'' ;..;_";"'-';';:~"'.: .;;, ;;: comments..wlllbe,~ted'on tfle' Goal_for,forty~fNe general circulation by Decree entered in the Superior ~,(45),daYs'...;fl'()m,:,thEJ"date :o":thi&:'~tk:e;',Coinments , ,can. beforwai'd8d ,to-ttl~.cltyof:AiTt)yo, Grande at:the Court of San Luis Obispo County, State of Californlit,on abovestatedaddressi' .. . , .. \} \: :-',''':' '}\i'~-:<';:?':::~:;:'. :,';-i,:'?:'~ :: '~-''''i ,,::: :.~: . ;. ',':C_. '. '.' .'. ;' ..' ': June 9, 1952, Case #19139 under the Government Code '::Datt!d.at,,;.,roy9.:GIll~9; CalIfOrniar,thiir26th~~Y_O': of the State of California r~~~~il:~.Il,~;~:::::':'i::,:':,::':-,,::."::;::',':-,::':.':}'.:' ,':-::'::;" ;glrecto[~!\~"i~S~~S/C~c~~'. .................., . I certify (or declare) under the penalty of perjury that the 'f,taY31;'2005:; ',' 6191861 .,,",;,.....~<.._.';..:.; . :...' ;. foregoing is true and correct. '0<2$, , DATED: MAY 31, 2005 AD COST: $61.81 I City of Arroyo Grande Disadvantaged Business Enterprise (DBE) Program for FFY 2005/06 City of Arroyo Grande , Public Works Department i P.O. Box 550 Arroyo Grande, CA 93421 (805) 473-5440 August 2005 . This Program is in accordance with Title 49 of lhe Code of Federal Regulations Part 26 CITY OF ARROYO GRANDE DISADVANTAGED BUSINESS ENTERPRISE (DB E) PROGRAM I. Definitions of Terms The terms used in this program have the meanings defined in 49 CFR ~26.5. II. Objectives/Policy Statement (~~26.1, 26.23) The City of Arroyo Grande has established a Disadvantaged Business Enterprise (DBE) program in accordance with regulations of the U.S. Department of Transportation (DOT), 49 CFR Part 26. The City of Arroyo Grande has received Federal financial assistance from the DOT, and as a condition of receiving this assistance, the City of Arroyo Grande will sign an assurance that it will comply with 49 CFR Part 26. It is the policy of the City of Arroyo Grande to ensure that DBEs, as defined in part 26, have an equal opportunity to receive and participate in DOT-assisted contracts. It is also our policy: . To ensure nondiscrimination in the award and administration of DOT-assisted contracts; . To create a level playing field on which DBEs can compete fairly for DOT-assisted contracts; . To ensure that the DBE Program is narrowly tailored in accordance with applicable law; . To ensure that only firms that fully meet 49 CFR Part 26 eligibility standards are permitted to participate as OBEs; . To help remove barriers to the participation of DBEs in DOT -assisted contracts; and . To assist the development of firms that can compete successfully in the market place outside the DBE Program. The Director of Public Works has been delegated as the DBE Liaison Officer. I n that capacity, the Director of Public Works is responsible for implementing all aspects of the DBE program. Implementation of the DBE program is accorded the same priority as compliance with all other legal obligations incurred by the City of Arroyo Grande in its financial assistance agreements with the California Department of Transportation (Caltrans). The City of Arroyo Grande has disseminated this policy statement to the Arroyo Grande City Council and all the components of our organization. We have distributed this , statement to DBE and non-DBE business communities that perform work for us on , DOT-assisted contracts by publishing this statement in general circulation, minority-focused and trade association publications. City of Arroyo Grande DBE Program for FFY 2005/06 Page 1 August 2005 I , I , ----- III. Nondiscrimination (~26.7) The City of Arroyo Grande will never exclude any person from participation in, deny any person the benefits of, or otherwise discriminate against anyone in connection with the award and performance of any contract covered by 49 CFR Part 26 on the basis of race, color, sex, or national origin. In administering its DBE program, the City of Arroyo Grande will not, directly or through contractual or other arrangements, use criteria or methods of administration that have the effect of defeating or substantially impairing accomplishment of the objectives of the DBE program with respect to individuals of a particular race, color, sex, or national origin. IV. DBE Program Updates (~26.21) The City of Arroyo Grande will continue to carry out this program until the City of Arroyo Grande has established a new goal setting methodology or until significant changes to this DBE Program are adopted. The City of Arroyo Grande will provide to Caltrans a proposed 'overall goal and goal setting methodology and other program updates by June 1 of every year. V. Quotas (!j26.43) The City of Arroyo Grande will not use quotas or set asides in any way in the administration of this DBE program. VI. DBE Liaison Officer (DBELO) (~26.45) The City of Arroyo Grande has designated the following individual as the DBE Liaison Officer: Mr. Don Spagnolo, P.E. Director of Public Works/City Engineer City of Arroyo Grande P.O. Box 550 214 East Branch Street Arroyo Grande, CA 93421 (805) 473-5440 dspagnolo@arroyogrande.org I In that capacity, Mr. Spagnolo is responsible for implementing all aspects of the DBE i program and ensuring that the City of Arroyo Grande complies with all provisions of 49 i CFR Part 26. This is available on the Internet at: osdbuweb.dot.Qov/main.cfm. Mr. Spagnolo has direct, independent access to the City Manager concerning DBE program matters. The DBELO has a staff oftwo support personnel who will devote a portion of his/ her time to the program. An organization chart displaying the DBELO's position in the organization is found in Attachment A to this program. City of Arroyo Grande ! DBE Program for FFY 2005/06 Page 2 August 2005 The DBELO is responsible for developing, implementing and monitoring the DBE program, in coordination other appropriate officials. Duties and responsibilities include the following: 1. Gathers and reports statistical data and other information as required. 2. Reviews third party contracts and purchase requisitions for compliance with this program. 3. Works with all departments to set overall annual goals. r= 4. Ensures that bid notices and requests for proposals are available to DBEs in a timely manner. 5. Identifies contracts and procurements so that DBE goals are included in solicitations (both race-neutral methods and contract specific goals) and monitors results. ( 6. Analyzes the City of Arroyo Grande's progress toward goal attainment and identifies ways to improve progress. 7. Participates in pre-bid meetings. 8. Advises the CEO/governing body on DBE matters and achievement. 9. Chairs the DBE Advisory Committee. , 10. Participates with the legal counsel and project director to determine contractor compliance with good faith efforts. 11. Provides DBEs with information and assistance in preparing bids, obtaining bonding and insurance. 12. Plans and participates in DBE training seminars. 13. Provides outreach to DBEs and community organizations to advise them of opportunities. VII. Federal Financial Assistance Agreement Assurance (~26.13) The City of Arroyo Grande will sign the following assurance, applicable to all FHWA-assisted contracts and their administration as part of the program supplement agreement for each project: The recipient shall not discriminate on the basis of race, color, national origin, or sex in the award and performance of any DOT-assisted contract or in the administration of its DBE Program or the requirements of 49 CFR part 26. The recipient shall take all necessary and reasonable steps under 49 CFR part 26 to ensure nondiscrimination in the award and administration of DOT-assisted contracts. The recipient's DBE Program, as required by 49 CFR part 26 and as approved by DOT, is incorporated by reference in this agreement. Implementation of this program is a legal obligation and failure to carry out its terms shall be treated as a violation of this agreement. Upon notification to the recipient of its failure to carry out its approved program, the Department may impose sanctions as provided for under part 26 and may, in appropriate cases, refer the matter for enforcement under 18 U.S.C. 1001 and/or the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801 et seq.). City of Arroyo Grande DBE Program for FFY 2005/06 Page 3 August 2005 I I I VIII. DBE Financial Institutions It is the policy of the City of Arroyo Grande to investigate the full extent of services offered by financial institutions owned and controlled by socially and economically disadvantaged individuals in the community, to make reasonable efforts to use these institutions, and to encourage prime contractors on DOT-assisted contracts to make use ofthese institutions. Information on the availability of such institutions can be obtained from the DBE Liaison Officer. The Caltrans Disadvantaged Business Enterprise Program may offer assistance to the DBE Liaison Officer. IX. Directory (926.31) The City of Arroyo Grande will refer interested persons to the DBE directory available from the Caltrans Disadvantaged Business Enterprise Program website at: www.dot. ca.Qov/hQ/bep. 24. Overconcentration (926.33) The City of Arroyo Grande has not identified any types of work in DOT -assisted contracts I that have a overconcentration of DBE participation. If in the future the City of Arroyo Grande identifies the need to address overconcentration, measures for addressing overconcentration will be submitted to the DLAE for approval. XI. Business Development Programs" (926.35) The City of Arroyo Grande does not have a business development or mentor-protege program. If the City of Arroyo Grande identifies the need for such a program in the future, the rationale for adopting such a program and a comprehensive description of it will be submitted to the DLAE for approval. XII. Required Contract Clauses (9926.13, 26.29) Contract Assurance The City of Arroyo Grande ensures that the following clause is placed in every DOT-assisted contract and subcontract: I The contractor or subcontractor shall not discriminate on the basis of race, color, national I origin, or sex in the performance of this contract. The contractor shall carry out applicable requirements of 49 CFR part 26 in the award and administration of DOT -assisted contracts. Failure by the contractor to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy as recipient deems appropriate. City of Arroyo Grande DBE Program for FFY 2005106 Page 4 August 2005 i Prompt Payment The City of Arroyo Grande ensures that the following clauses or equivalent will be included in each DOT-assisted prime contract: Prompt ProQress Payment To Subcontractors A prime contractor or subcontractor shall pay a subcontractor not later than 10 days of receipt of each progress payment in accordance with the provision in Section 7108.5 of the rr. ' l~ California Business and Professions Code concerning prompt payment to subcontractors. ~. The 1 o days is applicable unless, a longer period is agreed to in writing. Any violation of Section 7108.5 shall subject the violating contractor or subcontractor to the penalties, sanction and other remedies of that section. Federal regulation (49 CFR 26.29) requires that any delay or postponement of payment over 30 days of receipt of each payment may take section. Federal regulation (49 CFR 26.29) requires that any delay or postponement of payment over 30 days of receipt of each payment may take place only for good cause and with the agency's prior written approval. These requirements shall not be construed to limit or impair any contractual, administrative, or judicial remedies otherwise, available to the prime contractor or subcontractor the event of a dispute involving late payment, or nonpayment by the prime contractor, deficient subcontract performance, or non compliance by a subcontractor. This provision applies to both DBE and non-DBE prime contractors and subcontractors. Prompt Payment Of Withheld Funds To Subcontractors The agency shall hold retainage fro the prime contractor and shall mke prompt and regular incremental acceptances or portions, as determined by the agency of the contract work and pay retainage to the prime contractor based on these acceptances. The prime contractor or subcontractor shall return all monies withheld in retention from a subcontractor within 30 days after receiving payment for work satisfactorily completed and accepted including incremental acceptances of portions of the contract work by the agency. Federal regulation (49 CFR 26.29) requires that any delay or postponement of payment over 30 days may take only for good cause and with the agency's prior written approval. Any violation of these provisions shall subject the violating prime contractor of subcontractor to the penalties, sanctions, and other remedies specified in Section 7108.5 of the California Business and Professions Code. These requirements shall not be construed to limit or impair any contractual, administrative, or judicial remedies otherwise, available to the prime contractor or subcontractor in the event of a dispute involving late payment, or nonpayment by the subcontractor. This provision applies to both DBE and non-DBE prime contractors and subcontractors. City of Arroyo Grande DBE Program for FFY 2005/06 Page 5 August 2005 - XIII. Monitoring and Enforcement Mechanisms (926.37) The City of Arroyo Grande will assign a Resident Engineer (RE) or Contract Manager to monitor and track actual DBE participation through contractor and subcontractor reports of payments in accordance with the following: After Contract Award After the contract award the City of Arroyo Grande will review the award documents for the portion of items each DBE and first tier subcontractor will be performing and the dollar value of that work. With these documents the RE/Contract Manager will be able to determine the work to be performed by the DBEs or subcontractors listed. Preconstruction Conference A preconstruction conference will be scheduled between the RE and the contractor or their representative to discuss the work each DBE subcontractor will perform. Before work can begin on a subcontract, the local agency will require the contractor to submit a completed "Subcontracting Request," Exhibit 16-B of the LAPM or equivalent. When the RE receives the completed form it will be checked for agreement of the first tier subcontractors and DBEs. The RE will not approve the request when it identifies someone other than the DBE or first tier subcontractor listed in the previously completed "Local - Agency Bidder DBE Information," Exhibit 15-G. The "Subcontracting Request" will not be approved until any discrepancies are resolved. If an issue cannot be resolved at that time, or there is some other concern, the RE will require the contractor to eliminate the subcontractor in question before signing the subcontracting request. A change in the DBE or first tier subcontractor may be addressed during a substitution process at a later date. Suppliers, vendors, or manufacturers listed on the "Local Agency Bidder DBE Information" will be compared to those listed in the completed Exhibit 16-1 of the LAPM or equivalent. Differences must be resolved by either making corrections or requesting a substitution. Substitutions will be subject to the Subletting and Subcontracting Fair Practices Act (FPA). Local agencies will require contractors to adhere to the provisions within Subletting and Subcontracting Fair Practices Act (State Law) Sections 4100-4144. FPA requires the contractor to list all subcontractors in excess of one half of one percent (0.5%) of the , contractor's total bid or $10,000, whichever is greater. The statute is designed to prevent I bid shopping by contractors. The FPA explains that a contractor may not substitute a subcontractor listed in the original bid except with the approval of the awarding authority. The RE will give the contractor a blank Exhibit 17 -F, "Final Report Utilization of Disadvantaged Business Enterprises, First Tier Subcontractors" and will explain to them that the document will be required at the end of the project, for which payment can be withheld, in conformance with the contract. City of Arroyo Grande DBE Program for FFY 2005/06 Page 6 August 2005 I i , Construction Contract MonitorinQ The RE will ensure that the RE's staff (inspectors) know what items of work each DBE is responsible for performing. Inspectors will notify the RE immediately of apparent violations. When a firm other than the listed DBE subcontractor is found performing the work, the RE will notify the contractor of the apparent discrepancy and potential loss of payment. Based on the contractor's response, the RE will take appropriate action: The DBE Liaison Officer will perform a preliminary investigation to identify any potential issues related to the DBE subcontractor performing a commercially useful function. Any substantive issues will be forwarded to the Caltrans Disadvantaged Business Enterprise Program. If the contractor fails to adequately explain why there is a discrepancy, payment for the work will be withheld and a letter will be sent to the contractor referencing the applicable specification violation and the required withholding of payment. If the contract requires the submittal of a monthly truck document, the contractor will be required to submit documentation to the RE showing the owner's name; California Highway Patrol CA number; and the DBE certification number of the owner of the truck for each truck used during that month for which DBE participation will be claimed. The trucks will be listed by California Highway Patrol CA number in the daily diary or on a separate piece of paper for documentation. The numbers are checked by inspectors regularly to confirm compliance. Providing evidence of DBE payment is the responsibility of the contractor. Substitution When a DBE substitution is requested, the RE/Contract Manager will request a letter from the contractor explaining why substitution is needed. The RE/Contract Manager must review the letter to be sure names and addresses are shown, dollar values are included, and reason for the request is explained. If the RE/Contract Manager agrees to the substitution, the RE/Contract Manager will notify, in writing, the DBE subcontractor regarding the proposed substitution and procedure for written objection from the DBE subcontractor in accordance with the Subletting and Subcontracting Fair Practices Act. If the contractor is not meeting the contract goal with this substitution, the contractor must provide the required good faith effort to the RE/Contract Manager for local agency consideration. If there is any doubt in the RE/Contract Manager's mind regarding the requested substitution, the RE/Contract Manager may contact the DLAE for assistance and direction. City of Arroyo Grande DBE Program for FFY 2005/06 Page 7 August 2005 , I , I Record KeepinQ and Final Report Utilization of DisadvantaQed Business Enterprises The contractor shall maintain records showing the name and address of each first-tier subcontractor. The records shall also show: 1. The name and business address, regardless of tier, of every DBE subcontractor, DBE vendor of materials and DBE trucking company. 2. The date of payment and the total dollar figure paid to each of the firms. 3. The DBE prime contractor shall also show the date of work performed by their own forces along with the corresponding dollar value of the work claimed toward DBE goals. When a contract has been completed the contractor will provide a summary of the records stated above. The DBE utilization information will be documented on Exhibit 17 -F and will be submitted to the DLAE attached to the Report of Expenditures. The RE will compare the completed Exhibit 17 -F to the contractor's completed Exhibit 15-G and, if applicable, to the completed Exhibit 16-B. The DBEs shown on the completed Exhibit 17-F should be the same as those originally listed unless an authorized substitution was allowed, or the contractor used more DBEs and they were added. The dollar amount should reflect any changes made in planned work done by the DBE. The contractor will be required to explain in writing why the names of the subcontractors, the work items or dollar figures are different from what was originally shown on the completed Exhibit 15-G when: . There have been no changes made by the RE. . The contractor has not provided a sufficient explanation in the comments section of the completed Exhibit 17 -F. The explanation will be attached to the completed Exhibit 17 -F for submittal. The RE will file this in the project records. The local agency's Liaison Officer will keep track of the DBE certification status on the Internet at www.dot.ca.Qov/hQ/bep and keep the RE informed of changes that affect the contract. The RE will require the contractor to act in accordance with existing contractual commitments regardless of decertification. The DLAE will use the PS&E checklist to monitor the City of Arroyo Grande's commitment to require bidders list information to be submitted to the City of Arroyo Grande from the I awarded prime and subcontractors as a means to develop a bidders list. This monitoring I will only take place if the bidders list information is required to be submitted as stipulated in i the special provisions. The City of Arroyo Grande will bring to the attention of the DOT through the DLAE any false, fraudulent, or dishonest conduct in connection with the program, so that DOT can take the steps (e.g., referral to the Department of Justice for criminal prosecution, referral to the DOT Inspector General, action under suspension and debarment or Program Fraud and Civil Penalties rules) provided in 926.109. The City of Arroyo Grande also will consider City of Arroyo Grande DBE Program for FFY 2005/06 Page 8 August 2005 similar action under our own legal authorities, including responsibility determinations in future contracts. XIV. Overall Goals (926.45) Amount of Goal The City of Arroyo Grande's overall goal for the Federal fiscal year FFY 2005/06 is the following: 7% of the Federal financial assistance in FHWA-assisted contracts. This overall goal is broken down into 3% race-conscious and 4% race-neutral components. MethodoloQY The "Utilizing the Bidders List" methodology was used to determine the City of Arroyo Grande's overall goal for Federal fiscal Year FY 2005/06. 1. DOT-Assisted ContractinQ ProQram for FYY 2005/06 , The following represents the City of Arroyo Grande's projected FHWA funded contracts and expenditures by work category and corresponding North American Industry Classification System (NAICS) for FFY 2005/06: j'''''''' I !,ill~~ii~~ill~;." Highway, Street, and Bridge 237310 Construction Farroll Road $327,000 100% Rehabilitation Project '(USHA) Wilton Place Paving $50,000 100% Project (USHA) TOTAL $377 ,000 100% 2. Goal-methodoloQY Step I: Determination of a Base Figure (49 CFR 26.45) The City of Arroyo Grande utilized the following methodology in establishing its Base Figure of relative DBE availability for FFY 2004/05. For the Numerator: Certified DBE Firms in Citv of Arrovo Grande's Bidders List City of Arroyo Grande DBE Program for FFY 2005106 Page 9 August 2005 I For the Denominator: All Firms in City of Arroyo Grande's Bidders List The City of Arroyo Grande calculated its weighted Base Figure by first determining the number of ready, willing and able DBEs in its FY 2004/05 Bidders List by work category, and dividing the number of DBEs by the total number of firms in the same work category. Through this method, the City of Arroyo Grande can measure availability by the number of firms that have directly participated in, or attempted to participate in, City of Arroyo Grande's DOT-assisted contracting in FY 2005/06. Application of this formula yields the following baseline information: Number of DBE's in Citv of A rro vo Grande's Bidder List = BASE FIGURE Number of All Firms in City of Arroyo Grande's Bidders List The Base Figure resulting from this calculation is as follows: Base Figure = 1.0 (DBEs in 237310) Base Figure = 1.0m (1 ) r Base Figure = 1.0(7) Base Figure = [7 ] x 100 Base Figure = [7 ] x 100 = 7% Step II: Adjusting the Base Figure Breakout of Estimated Race-Neutral and Race-Conscious Participation Of the overall annual 7% goal for DBE participation, the City of Arroyo Grande projects meeting 4% of the goal utilizing race-neutral methods, including making efforts to assure that bidding and contract requirements facilitate participation by DBEs and other small businesses; unbundling large contracts to make them more accessible to small businesses; encouraging prime contractors to subcontract portions of the work that they might otherwise perform themselves; and providing technical assistance, and other support services to facilitate consideration of DBEs and other small businesses. The remaining 3% of the goal is anticipated to be accomplished through race-conscience measures, which includes establishing contract specific goals on contracts with contracting possibilities, when needed, to meet the City's overall annual DBE goal. City of Arroyo Grande DBE Program for FFY 2005/06 Page 10 August 2005 I Process Starting with the Federal fiscal year 2002, the amount of overall goal, the method to calculate the goal, and the breakout of estimated race-neutral and race-conscious participation will be required annually by June 1st in advance of the Federal fiscal year beginning October 1 for FHWA-assisted contracts. Submittals will be to the Caltrans' DLAE. An exception to this will be if FT A or FAA recipients are required by FT A or FAA to submit the annual information to them or a designee by another date. FHW A recipients will follow this process: Once the DLAE has responded with preliminary comments and the comments have been incorporated into the draft overall goal information, the City of Arroyo Grande will publish a notice of the proposed overall goal, informing the public that the proposed goal and its rationale are available for inspection during normal business hours at the City of Arroyo Grande's principal office for 30 days following the date of the notice, and informing the public that City of Arroyo Grande comments will be accepted on the goals for 45 days following the date of the notice. Advertisements in newspapers, minority focus media, trade publications, and websites will be the normal media to accomplish this effort. The notice. will include addresses to which comments may be sent and addresses (including offices and websites) where the proposal may be reviewed. The overall goal resubmission to the Caltrans DLAE, will include a summary of information and comments received during this public participation process and City of Arroyo Grande's responses. This will be due by September 1 to the Caltrans DLAE. The DLAE will have a month to make a final review so the City of Arroyo' Grande may begin using the I overall goal on October 1 sl of each year. I If there is a design build please refer to Appendix B of this DBE Program. XV. Contract Goals (926.51) The City of Arroyo Grande will use contract goals to meet any portion of the overall goal the City of Arroyo Grande does not project being able to meet by the use of race-neutral means. Contract goals are established so that, over the period to which the overall goal applies, they will cumulatively result in meeting any portion of the overall goal that is not projected to be met through the use of race-neutral means. Contract goals will be established only on those DOT-assisted contracts that have subcontracting possibilities. Contract goals need not be established on every such , contract, and the size of contract goals will be adapted to the circumstances of each such , I contract (e.g., type and location of work, availability of DBEs to perform the particular type of work). The contract work items will be compared with eligible DBE contractors willing to work on the project. A determination will also be made to decide which items are likely to be performed by the prime contractor and which ones are likely to be performed by the subcontractor(s). The goal will then be incorporated into the contract documents. Contract goals will be expressed as a percentage of the total amount of a DOT -assisted contract. City of Arroyo Grande DBE Program for FFY 2005/06 Page 11 August 2005 , I I XVI. Transit Vehicle Manufacturers (S26.49) If DOT-assisted contracts will include transit vehicle procurements, the City of Arroyo Grande will require each transit vehicle manufacturer, as a condition of being authorized to bid or propose on transit vehicle procurements, to certify that it has complied with the requirements of 49 CFR Part 26, Section 49. The City of Arroyo Grande will direct the transit vehicle manufacturer to the subject requirements located on the Internet at: http://osdbuweb.dot.Qov/proQrams/dbe/dbe.htm. XVII. Good Faith Efforts (S26.53) Information to be Submitted The City of Arroyo Grande treats bidders'/offerors' compliance with good faith effort requirements as a matter of responsiveness. A responsive proposal is meeting all the requirements of the advertisement and solicitation. Each solicitation for which a contract goal has been established will require the bidders/offerors to submit the following information to: City of Arroyo Grande Attn: Director of Administrative Services P.O. Box 550 214 East Branch Street Arroyo Grande, CA 93421 no later than 4:00 p.m. on or before the fourth day, not including Saturdays, Sundays and legal holidays, following bid opening: 4. The names and addresses of known DBE firms that will participate in the contract; 5. A description of the work that each DBE will perform; 6. The dollar amount of the participation of each DBE firm participation; 7. Written and signed documentation of commitment to use a DBE subcontractor whose participation it submits to meet a contract goal; 8. Written and signed confirmation from the DBE that it is participating in the contract as provided in the prime contractor's commitment; and 9. If the contract goal is not met, evidence of good faith efforts. Demonstration of Good Faith Efforts The obligation of the bidder/offeror is to make good faith efforts. The bidder/offeror can demonstrate that it has done so either by meeting the contract goal or documenting good faith efforts. Examples of good faith efforts are found in Appendix A to part 26, which is attached. City of Arroyo Grande DBE Program for FFY 2005/06 Page 12 August 2005 The following personnel are responsible for determining whether a bidder/offeror who has not met the contract goal has documented sufficient good faith efforts to be regarded as responsive: The City of Arroyo Grande Director of Public Works. The City of Arroyo Grande will ensure that all information is complete and accurate and adequately documents the bidder/offeror's good faith efforts before a commitment to the performance of the contract by the bidder/offeror is made. Administrative Reconsideration Within 10 days of being informed by the City of Arroyo Grande that it is not responsive because it has not documented sufficient good faith efforts, a bidder/offeror may request administrative reconsideration. Bidder/offerors should make this request in writing to the following reconsideration official: Mr. Steven Adams, City Manager City of Arroyo Grande P.O. Box 550 214 East Branch Street Arroyo Grande, CA 93421 (805) 473-5404 The reconsideration official will not have played any role in the original determination that the bidder/offeror did not make document sufficient good faith efforts. As part of this reconsideration, the bidder/offeror will have the opportunity to provide written documentation or argument concerning the issue of whether it met the goal or made adequate good faith efforts to do so. The bidder/offeror will have the opportunity to meet in person with the reconsideration official to discuss the issue of whether it met the goal or made adequate good faith efforts to do. The City of Arroyo Grande will send the bidder/offeror a written decision on reconsideration, explaining the basis for finding that the bidder did or did not meet the goal or make adequate good faith efforts to do so. The result of the reconsideration process is not administratively appealable to Caltrans, FHW A or the DOT. Good Faith Efforts when a DBE is Replaced on a Contract The City of Arroyo Grande will require a contractor to make good faith efforts to replace a DBE that is terminated or has otherwise failed to complete its work on a contract with another certified DBE, to the extent needed to meet the contract goal. The prime contractor is required to notify the RE immediately of the DBE's inability or unwillingness to perform and provide reasonable documentation. In this situation, the prime contractor will be required to obtain City of Arroyo Grande prior approval of the substitute DBE and to provide copies of new or amended subcontracts, or documentation of good faith efforts. If the contractor fails or refuses to comply in the time City of Arroyo Grande DBE Program for FFY 2005/06 Page 13 August 2005 specified, the City of Arroyo Grande contracting office will issue an order stopping all or part of payment/work until satisfactory action has been taken. If the contractor still fails to comply, the contracting officer may issue a .termination for default proceeding. VXIII. Counting DBE Participation (S26.55) The City of Arroyo Grande will count DBE participation toward overall and contract goals as provided in the contract specifications forthe prime contractor, subcontractor, joint venture partner with prime or subcontractor, or vendor of material or supplies. See the Caltrans' Sample Boiler Plate Contract Documents previously mentioned. Also, refer to XI, A. "After Contract Award." XIX. Certification (S26,83(a)) The City of Arroyo Grande ensures that only DBE firms currently certified on the Caltrans' directory will participate as DBEs in our program. XX. Information Collection and Reporting Bidders List The City of Arroyo Grande will create and maintain a bidders list, consisting of information about all DBE and non-DBE firms that bid or quote on its DOT-assisted contracts. The bidders list will include the name, address, DBE/non-DBE status, age, and annual gross receipts of firms. MonitorinQ Payments to DBEs Prime contractors are required to maintain records and documents of payments to DBEs for three years following the performance of the contract. These records will be made available for inspection upon request by any authorized representative of the City of Arroyo Grande, Caltrans, or FHW A. This reporting requirement also extends to any certified DBE subcontractor. Payments to DBE subcontractors will be reviewed by the City of Arroyo Grande to ensure that the actual amount paid to DBE subcontractors equals or exceeds the dollar amounts stated in the schedule of DBE participation. , ReportinQ to Caltrans I The City of Arroyo Grande's final utilization of DBE participation will be reported to the DLAE using Exhibit 17 -F of the Caltrans' LAPM. City of Arroyo Grande DBE Program for FFY 2005/06 Page 14 August 2005 I Confidentiality The City of Arroyo Grande will safeguard from disclosure to third parties information that may reasonably be regarded as confidential business information, consistent with Federal, state, and local laws. This Disadvantaged Business Enterprises Program is approved by: Steven Adams Date City Manager This Disadvantaged Business Enterprises Program is accepted by: Michael A. Giuliano, P.E. Date Caltrans District 5 Local Assistance Engineer I i City of Arroyo Grande DBE Program for FFY 2005106 Page 15 August 2005 , i , ATTACHMENT A ORGANIZATIONAL CHART THE ELECTORS I MAYOR AND CITY COUNCIL I CITY MANAGER ./ Steven Adams , I PUBLIC WORKS DEPARTMENT Don Spagna/a, PE Director/City Engineer/DBELO I I I Michae/ E. Linn, PE Thomas Korman, PE Assistant City Engineer/ Associate Engineer/ ' DBE Support Staff DBE Support Staff City of Arroyo Grande I DBE Program for FFY 2005/06 Attachment A - Page 2 August 2005 APPENDIX A TO PART 26 GUIDANCE CONCERNING GOOD FAITH EFFORTS I. When, as a recipient, you establish a contract goal on a DOT-assisted contract, abidder must, in order to be responsible and/or responsive, make good faith r efforts to meet the goal. The bidder can meet this requirement in either of two " ways. First, the bidder can meet the goal, documenting commitments for participation by DBE firms sufficient for this purpose. Second, even if it doesn't meet the goal, the bidder can document adequate good faith efforts. This means that the bidder must show that it took all necessary and reasonable steps to achieve a DBE goal or other requirement of this part which, by their scope, intensity, and appropriateness to the objective, could reasonably be expected to obtain sufficient DBE participation, even if they were not fully successful. II. In any situation in which you have established a contract goal, part 26 requires you to use the good faith efforts mechanism of this part. As a recipient, it is up to you to make a fair and reasonable judgment whether a bidder that did not meet the goal made adequate good faith efforts. It is important for you to consider the quality, quantity, and intensity of the different kinds of efforts that the bidder has made. The efforts employed by the bidder should be those that one could reasonably expect a bidder to take if the bidder were actively and aggressively trying to obtain DBE participation sufficient to meet the DBE contract goal. Mere pro forma efforts are not good faith efforts to meet the DBE contract requirements. We emphasize, however, that your determination concerning the sufficiency of the firm's good faith efforts is a judgment call: meeting quantitative formulas is not required. III. The Department also strongly cautions you against requiring that a bidder meet a contract goal (Le., obtain a specified amount of DBE participation) in order to' be awarded a contract, even though the bidder makes an adequate good faith efforts showing. This rule specifically prohibits you from ignoring bona fide good faith efforts. IV. The following is a list of types of actions which you should consider as part of the bidder's good faith efforts to obtain DBE participation. It is not intended to be a mandatory checklist, nor is it intended to be exclusive or exhaustive. Other factors or types of efforts may be relevant in appropriate cases. a. Soliciting through all reasonable and available means (e.g. attendance at pre-bid meetings, advertising and/or written notices) the interest of all certified DBEs who have the capability to perform the work of the contract. The bidder must solicit this interest within sufficient time to allow the DBEs to respond to the solicitation. The bidder must determine with certainty if the DBEs are interested by taking appropriate steps to follow up initial solicitations. City of Arroyo Grande DBE Program for FFY 2005/06 Appendix A - Page 3 August 2005 b. Selecting portions of the work to be performed by DBEs in order to increase the likelihood that the DBE goals will be achieved. This includes, where appropriate, breaking out contract work items into economically feasible units to facilitate DBE participation, even when the prime contractor might otherwise prefer to perform these work items with its own forces. c. Providing interested DBEs with adequate information about the plans, / specifications, and requirements of the contract in a timely manner to assist them in responding to a solicitation. d. (1 ) Negotiating in good faith with interested DBEs. It is the bidder's responsibility to make a portion of the work available to DBE subcontractors and suppliers and to select those portions of the work or material needs consistent with the available DBE subcontractors and suppliers, so as to facilitate DBE participation. Evidence of such negotiation includes the names, addresses, and telephone numbers of DBEs that were considered; a description of the information provided regarding the plans and specifications for the work selected for subcontracting; and evidence as to why additional agreements could not be reached for DBEs to perform the work. (2) A bidder using good business judgment would consider a number of factors in negotiating with subcontractors, including DBE subcontractors, and would take a firm's price and capabilities as well as contract goals into consideration. However, the fact that there may be some additional costs involved in finding and using DBEs is not in itself sufficient reason for a bidder's failure to meet the contract DBE goal, as long as such costs are ,reasonable. Also, the ability or desire of a prime contractor to perform the work of a contract with its own organization does not relieve the bidder of the responsibility to make good faith efforts. Prime contractors are not, however, required to accept higher quotes from DBEs if the price difference is excessive or unreasonable. e. Not rejecting DBEs as being unqualified without sound reasons based on a thorough investigation of their capabilities. The contractor's standing within its industry, membership in specific groups, organizations, or associations and political or social affiliations (for example union vs. non-union employee status) are not legitimate causes for the rejection or non-solicitation of bids in the contractor's efforts to meet the project goal. f. Making efforts to assist interested DBEs in obtaining bonding, lines of credit, or insurance as required by the recipient or contractor. g. Making efforts to assist interested DBEs in obtaining necessary equipment, supplies, materials, or related assistance or services. i h. Effectively using the services of available minority/women community I City of Arroyo Grande i DBE Program for FFY 2005/06 Appendix A - Page 4 August 2005 organizations; minority/women contractors' groups; local, state, and Federal minority/women business assistance offices; and other organizations as allowed on a case-by-case basis to provide assistance in the recruitment and placement of DBEs. 5. In determining whether a bidder has made good faith efforts, you may take into account the performance of other bidders in meeting the contract. For example, when the apparent successful bidder fails to meet the contract goal, but others meet it, you may reasonably raise the question of whether, with additional reasonable efforts, the apparent successful bidder could have met the goal. If the apparent successful bidder fails to meet the goal, but meets or exceeds the average DBE participation obtained by other bidders, you may view this, in conjunction with other factors, as evidence of the apparent successful bidder having made good faith efforts. City of A "oyo Grande DBE Program for FFY 2005106 Appendix A - Page 5 August 2005 APPENDIX B TO BE USED FOR DESIGN-BUILD CONTRACTS The following are hereby incorporated into the Agency's Disadvantaged Business Enterprise (DBE) Program: II. Objectives IPolicy Statement (9926.1,26.23) At the end of the first paragraph, add the following: The Agency recognizes that certain modifications are necessary to adapt the program for use in connection with design-build contracts, and has therefore established certain procedures applicable to design-build DBE contracts under the DBE Program. Public Contract Code Section 4109 requires subcontractors to be identified by the prime contractor for the subletting or subcontracting of any portion of the work in excess of one-half of 1 percent of the prime contractor's total bid. Exceptions are only in the cases of public emergency or necessity, and then only after a finding reduced to writing as a public record of the awarding authority setting forth the facts constituting the emergency or necessity. The written public record of the awarding authority/Agency as to either emergency or necessity is attached hereto (See Appendix C for sample). XIII. Monitoring and Enforcement Mechanisms (926.37) At the end of the first paragraph below "After Contract Award", add the following paragraph: After Desian-Build Contract Award As described in the Section entitled "GOOD FAITH EFFORTS" below, each proposer for an Agency design-build contract will be required to submit a DBE Performance Plan as part of a responsive proposal. Following award of a design-build contract and during both the design and construction portions of the project, the design-build contractor will be required to submit documentation, in the form of progress reports described below, to show that the design-build contractor is meeting the contract goal for the project, or if the goal is not being met, the design-build contractor must submit satisfactory evidence that it has made good faith efforts, in accordance with that Section, to meet the goal. Evidence of good faith efforts, as described in 49 CFR Part 26 Section 26.5349 and Appendix A. will be monitored by the Agency throughout the duration of the design-build project. At the end of the first paragraph below "Pre-Construction Conference", add the following sentence: , The contractor will promptly provide the Agency with the information required by the form entitled "Local I Agency DBE Information" upon selection of any DBE or other subcontractor not previously identified by the design-build contractor. During the course of the contract, differences must be explained and resolved by either making corrections or requesting a substitution. City of Arroyo Grande DBE Program for FFY 2005106 Appendix B - Page 1 August 2005 At the end of the fourth paragraph below "Construction Contract Monitorinq", add the following paragraph: The contractor will provide DBE Progress Reports to the Agency with each invoice and will provide an annual report on or before August 1 of each year of the design-build contract. Each report must also include a narrative summary stating whether the contractor is on target with respect to the DBE goal set forth in the design-build contract, whether the goalhas been exceeded (stating the amount of the excess), or whether the contractor is behind target (stating the amount of the deficit). XVII. Good Faith Efforts (326.53) At the end of the third paragraph below "Information to be Submitted", add the following items: 1. A DBE Performance Plan containing a detailed description of the design-build contractor's planned methodology for achieving the DBE goal stated in the contract, including a description of the good faith efforts the design-build contractor intends to undertake to achieve that goal. 2. A design-build proposal must also include an affidavit that the proposer will either attain the DBE goals for the design-build contract or will exercise good faith efforts to do so. At the end of the first paragraph below "Demonstration of Good Faith Efforts", add the following sentence: If it is a design-build contract, each contractor proposing will be required to submit DBE Performance Plan as part of a responsive proposal and good faith efforts. This Disadvantaged Business Enterprises Program for design-build contracts is approved by: Steven Adams Date City Manager This Disadvantaged Business Enterprises Program for design-build contracts is accepted by: Michael A. Giuliano, P.E. Date Caltrans District 5 Local Assistance Engineer City of Arroyo Grande DBE Program for FFY 2005/06 Appendix B - Page 2 , August 2005 APPENDIX C SAMPLE RESOLUTION RESOLUTION OF THE CITY OF ARROYO GRANDE REGARDING NECESSITY OR EMERGENCY FOR SUBSEQUENT SUBCONTRACTOR IDENTIFICATION AND SELECTION FOR DESIGN.BUILD CONTRACTS (REQUIRED BY PUBLIC CONTRACT CODE SECTION 4109 ENTITLED "PUBLIC EMERGENCY GROUNDS FORCHANGE1 A. EXPLANATION OF PUBLIC NECESSITY OR EMERGENCY: B. FACTS CONSTITUTING THE PUBLIC NECESSITY OR EMERGENCY: C. FINDINGS: D. RESOLUTION FOR SUBSEQUENT IDENTIFICATION OF SUBCONTRACTORS: E. ADOPTION OF PROCEDURE TO BE USED BY DESIGN-BUILD CONTRACTOR FOR SUBSEQUENT IDENTIFICATION OF SUBCONTRACTORS: F. CERTIFICATE OF SECRETARY 1. MOTION MADE AND DATE 2. VOTING RESULTS 3. SIGNATURES: (a) (Secretary) (b) (Chairperson) City of Arroyo Grande DBE Program for FFY 2005/06 Appendix C - Page 1 August 2005 ./ ./ 8.f. MEMORANDUM TO: CITY COUNCIL FROM: DON SPAGNOLO, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER rP6" SUBJECT: CONSIDERATION TO REJECT THE BID FOR THE WELL NO. 10, PHASE I PROJECT, PW 2004-07 DATE: AUGUST 9, 2005 RECOMMENDATION: It is recommended the City Council reject the bid for the Well No. 10, Phase I Project, PW 2004-07. FUNDING: This project is funded through the Capital Improvement Program in the amount of $420,400 and will be performed in two separate phases. The bid of $265,832 for the. Phase I portion of the project is higher than the Engineer's Estimate of $159,500. Staff has researched factors for the higher bid and has developed options to reduce the price of the project to meet the available funding. DISCUSSION: On June 14, 2005, the City Council directed staff to solicit bids forthe Well No. 10, Phase I Project. On July 12, 2005, one bid was received from Maggiora Brothers of Watsonville, California in the amount of $287,094. Staff recommends rejection of the bid, as it is higher than the Engineer's Estimate of $155,400. The Phase I project provides for the construction of the test well and'to determine the actual production capacity of the well and the water quality as a basis for the design of Phase II. Phase II involves the construction of the permanent pump and associated waterline piping, the required treatment facility, the building enclosure, and the permanent connection into the City's water system. The well site is located on property at the southwest corner of the Deer Trail Circle and Equestrian Way. There are three basic techniques for drilling wells; the cable tool (percussion) method, the direct rotary method and the reverse rotary method. The specifications required the reverse rotary method for the Phase I project. The basic difference between the first two methods and the reverse rotary method is that the circulating fluid flows down the drilled hole and back up through the drilling pipe spilling out of the top sides of the drill shaft. The sole bidder was contacted, as well as the other well drillers that did not bid on the project, to determine whether there are any potential design changes that could result in cost savings. Staff determined the following: , S:IPUBLlC WORKS ENGINEERING SHARED ITEMSICapital Projecls\2005lWell No 1 OICouncil\Phase I - Rejection of BidlCouncil Memo - Reject All Bids.doc CITY COUNCIL CONSIDERATION TO REJECT THE BID FOR THE WELL NO. 10, PHASE I PROJECT PW 2004-07 AUGUST 9, 2005 PAGE 2 . There currently is a high demand for drilling services that is not anticipated to subside anytime soon. A number of well drillers stated that the specified contract time of ninety calendar days limited them from bidding due to their backlog of projects. Since many of the firms are scattered throughout California, they schedule their operations to perform as much work as possible in a given geographic area. It is recommended that the contract time be increased (Le. 150 calendar days) to enable contractors to better fit the drilling of Well NO.1 0 into their main operations schedule. . Minor clarifications to the specification requirements for the Noise Reduction Plan, with some of the work performed by City forces, should decrease the potential labor costs. . Similarly, minor clarifications to the traffic control requirements should also lessen the potential labor costs. The technical specifications will be reviewed to incorporate these changes. Staff will then readvertise the project. ALTERNATIVES: The following alternatives are provided for the Council's consideration: . Approve staff's recommendation; . Do not approve staff's recommendation; . Modify as appropriate and approve staff's recommendation; or . Provide direction to staff. Attachment: 1. Bid Opening Log Sheet S:\PUBLlC WORKS ENGINEERING SHARED ITEMS\Capital Projects\2005\Well No 1 O\Council\Phase I - Rejection of Bid\Council Memo - Reject All Bids.doc - - -~-_._- - -- -~.-. - - ~-~ , .1 j; BID OPENING LOG SHEET CITY OF ARROYO GRANDE . BID OPENING: July 12, 2005; 2:00 p.m. Well No. 10, Phase I Engineer's Estimate: $159,500.00 BIDDER'S NAME. CITY TOTAL Maggiora Bros. Drilling Inc. $261,632.00 Watsonville, CA ~ inistrative Services/City Clerk c: Director of Public Works City Manager \. 8.g. MEMORANDUM TO: CITY COUNCIL FROM: DON SPAGNOLO, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER W SUBJECT: CONSIDERATION TO REJECT ALL BIDS FOR THE SEWER LIFT STATION NO.1 UPGRADE PROJECT, PW 2005-02 DATE: AUGUST 9, 2005 RECOMMENDATION: It is recommended the City Council reject all bids for the Sewer Lift Station NO.1 Upgrade Project, PW 2005-02. FUNDING: This project is funded through the Capital Improvement Program in the amount of $574,500. The lowest responsive bid of $581 ,290 is higher than the Engineer's Estimate of $466,000. Staff has researched factors for the higher bids and developed options to reduce the price of the project to meet the available funding. DISCUSSION: On June 14, 2005, the City Council directed staff to solicit bids for the Sewer Lift Station NO.1 Upgrade Project. On July 14, 2005, three bids were opened. The lowest responsive bid, from MGE Underground, Inc. of Paso Robles, was in the amount of $581 ,290. Staff recommends rejection of the bids, as it is significantly higher than the Engineer's Estimate of $466,000. The existing Sewer Lift Station No.1, located near 1.590 West Branch Street, is 32 years old and has experienced continuing mechanical failures. The project will upgrade the lift station by replacing the existing vertical turbine sewage pumps with submersible pumps equipped with variable frequency drives. This will enable a much smoother and more efficient operation, as the new pumps are able to adapt their speeds to the incoming flows.. Following receipt of the construction bids, the bidders were contacted to determine why their bids exceeded the Engineer's Estimate. Additional research was also performed to determine whether there are potential design changes that could result in cost savings to the project. The following project elements have been revised: . Substitute standard steel reinforcement in lieu of the specified epoxy coated . reinforcement steel. Epoxy coated reinforcement steel is common in harsh or marine environments. The structural engineer has determined that the epoxy coating is not necessary for the locations in which it was specified. S:IPUBLlC WORKS ENGINEERING SHAREDITEMSICapltal Projects\2005lSewer Lift Station No. 11CouncillRejection of Bids\Council Memo - RejectAIl.Bids.doc CITY COUNCIL CONSIDERATION TO REJECT ALL BIDS FOR THE SEWER LIFT STATION NO.1 UPGRADE PROJECT, PW 2005-02 AUGUST 9, 2005 PAGE 2 . The SCADA (Supervisory Control And Data Acquisition) System upgrades, which are the industrial controls and instrumentation for remote monitoring of the station, are being performed on a separate contract by a specialty contractor. Several contractors mistakenly believed that they would have to provide at least part of the system. The consultant is clarifying the specification language and providing additional demarcation of responsibilities on the project plans for clarification. . Temporary sewer bypass' are required at various stages of the project to facilitate the installation of new components. The contractors seemed confused over the limits and scope of the bypass requirements. . Downsize the capacity of the emergency electrical generator to 125 KW. The results of these design changes will be incorporated into the contract documents, as well as the addenda items issued during the initial request for construction bids. Staff will readvertise the project for solicitation of new construction bids. ALTERNATIVES: The following alternatives are provided for the Council's consideration: . Approve staff's recommendation; . Do not approve staff's recommendation; . Modify as appropriate and approve staff's recommendation; or . Provide direction to staff. Attachment: 1. Bid Opening Log Sheet S:\PUBLlC WORKS ENGINEERING SHARED ITEMS\Capital Projects\2005\Sewer Lift Station No. 1\Council\Rejection of Bids\Council Memo - Reject All Bids.doc I f I ! SID OPENING LOG SHEET CITY OF ARROYO GRANDE SID OPENING' '.' . July 14,2005; 2:00 p.m. Sewer Lift Station No.1 Upgrade Engineer's Estimate: $466,000.00 BIDDER'S NAME, CITY TOTAL R. Baker, Inc. $688,200.00 Arroyo Grande, CA MGE Underground, Inc. $581,290.00 Paso Robles, CA Specialty Construction, Inc. $588,560.00 San Luis Obispo, CA . . ,ct!lU()~ inistrative Services/City Clerk .. c: Director of Public Works City Manager 8.h. MEMORANDUM TO: CITY COUNCIL FROM: DON SPAGNOLO, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER ff6" SUBJECT: CONSIDERATION TO APPROVE THE PURCHASE OF A REPLACEMENT PUMP AND PIPE COLUMN FOR WELL NO.6 DATE: AUGUST 9, 2005 RECOMMENDTION: It is recommended the City Council: ,A. ratify approval of the purchase of a replacement pump and pipe column for Well No.6; and B. authorize an appropriation of $6,000 from the Water Fund and a transfer of $5,000 from the Parks Capital Improvement Project Fund. FUNDING: Funding for the replacement pump and pipe column will be from two sources, the Water Fund. and the Parks Capital Improvement Program. The Water Fund will contribute $6,000 from the fund balance. The estimated fund balance as of June 30, 2005 is $1,551,833. The Parks Capital Project will contribute $5,000. The total funding for the Parks Capital Improvement Program in FY 2005-06 from the sale of land is $73,562. The transfer of $5,000 will leave a balance of $68,562. DISCUSSION: Well NO.6 is the City's irrigation well that was drilled in 1956. The pump was replaced in 1988. During July, there was a vibration in the pump motor and a loss of water production. The motor was serviced and checked, and was operating normally. Upon further investigation by Mellow & Sons Pump & Motors, the vertical turbine pump needed to be replaced. The well is part of the Elm Street Park/Soto Sports Complex irrigation system. The system utilizes stored storm water from Basin NO.2 and the well to provide non- potable water to irrigate the Park/Complex and also to provide construction water for development projects. Currently there is a low water level, which will not allow continued pumping. With Well NO.6 out of service, the only source of water for the complex is potable water from the City's water distribution system. CITY COUNCIL CONSIDERATION TO APPROVE THE PURCHASE OF A REPLACEMENT PUMP AND PIPE COLUMN FOR WELL NO.6 AUGUST 9, 2005 PAGE 2 The Park/Complex system has been in service since 1986 and on average saves 100 acre-feet of potable water per year. In addition, an average of $4,000 per year is received from sales of construction water. On average, the demand for the system is 2.0 acre-feet per week. The repair to the well will entail the removal/replacement of the column pipe and pump. The written cost proposals on the attached Quotation Evaluation Summary were received from contractors qualified to perform the work. Staff has determined M & W Pumps, Inc. submitted the lowest responsible cost proposal and is able to perform the work in a timely manner. The Council is being asked to ratify the approval in this case since the City Manager authorized the purchase under provisions in the Municipal Code which enable normal purchasing provisions be waived in an emergency when determined to be in the best interest of the City. Therefore, it was determined necessary to proceed prior to the Council meeting in order to avoid a significant loss of water. ALTERNATIVES: The following alternatives are provided for Council consideration: Approve staff's recommendation; - Do not approve staff's recommendation; Modify as appropriate and approve staff's recommendation; or - Provide direction to staff Attachment: 1. Quotation Evaluation Summary co co 0; - !i~ "' co ... W .,; 0; .; ::t <0 0> <D ::;; "' .... <0 N .. <'i '" .,; Z - '" z; m '" " c ffi oS <D N 0 '" <D '" CO " X '" :::i <0 0. ,~ "' '" c 0- ~ ,;, E .,; '" f- "e. 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'" ;:: ~ W ~ .E c c '" 0 E 0 ::J " u. m 0 "0 z W " 0 0 Z Q> ~ ;:: 0 0. , 0- " ~ J: 'e. , W "' >- co 0 0- 8 "" 0 ;;; '" W 0. .!~ W f- ::J ...J '" N Q> 0 W E ;::: c ~ " :;; N '" Z 0. I" 0 0 .<= W Q> 0 0 m 1= .. " '" - "' '" u. ~ W ;: a: a: c. W 0 '" ;;: W Q> I, :;; 0 .. "' > a: i= , 0- C . () W W i ~ '" '" - ojj; 0- .. 'i~ .!il~i J W 0>- W 0- !!~ > <.> f- W ::; "0 .. a: W c 0- X c a.. 8.1. MEMORANDUM TO: CITY COUNCIL FROM: ROB STRONG, COMMUNITY DEVELOPMENT DIRECT~ BY: JIM BERGMAN, ASSISTANT PLANNER \(,b . , . SUBJECT: CONSIDERATION OF ADOPTION OF AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AMENDING THE ZONING MAP TO DESIGNATE THE SUBJECT PROPERTY AS PLANNED DEVELOPMENT 1.1 . (PD-1.1); DEVELOPMENT CODE AMENDMENT 05-008, INITIATED BY THE CITY OF ARROYO GRANDE FOR PROPERTY LOCATED AT 1400 WEST BRANCH STREET DATE: AUGUST 9, 2005 RECOMMENDATION: It is recommended the City Council adopt an Ordinance amending the zoning map to designate the subject property as Planned Development 1.1 - (PD-1.1). FUNDING: No fiscal impact. DISCUSSION: The proposed Ordinance was introduced at a public hearing on July 26, 2005 in conjunction with Tentative Parcel Map Case No. 05-003 and Conditional Use Permit (Specific Development Plan) Case No. 04-009 for the development of a 103 room Hampton Inn and Suites and a 6,000 square foot restaurant. The proposed Ordinance amends the zoning map for the property located at 1400 West Branch Street from Office Mixed Use (OMU) to Planned Development 1.1 (PD-1.1) ALTERNATIVES: The following alternatives are provided for the Council's consideration: - Adopt the Ordinance; - Continue consideration of the Ordinance; - Do not adopt the Ordinance; - Provide direction to staff. ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AMENDING THE ZONING MAP TO DESIGNATE THE SUBJECT PROPERTY AS PLANNED DEVELOPMENT 1.1 - (PD-1.1); DEVELOPMENT CODE AMENDMENT 05-008, INITIATED BY THE CITY OF ARROYO GRANDE FOR PROPERTY LOCATED AT 1400 WEST BRANCH STREET WHEREAS, the 2001 General Plan Update Urban Land Use Element Map designates the subject 2.68-acre property as Mixed Use with a Planned Development Overlay (PD); and WHEREAS, the City of Arroyo Grande Zoning Map currently designates the subject property as Office Mixed Use; and WHEREAS, the City of Arroyo Grande initiated Development Code Amendment 05-008 to amend the Zoning Map and designate the project site as Planned Development 1.1; and WHEREAS, the Planning Commission of the City of Arroyo Grande has reviewed Development Code Amendment 05-008 at a duly noticed public hearing on May 17, 2005 in accordance with the Development Code of the City of Arroyo Grande at which time all interested persons were given the opportunity to be heard; and WHEREAS, the City Council of the City of Arroyo Grande has considered Development Code Amendment 05-008 at a duly noticed public hearing on July 26, 2005, in accordance with the Development Code of the City of Arroyo Grande at which time all interested persons were given the opportunity to be heard; and WHEREAS, the City Council has reviewed and considered the information and public testimony presented at the public hearings, staff reports, and all other information and documents that are part of the public record; and WHEREAS, the City Council finds, after due study, deliberation and public hearing, the following circumstances exist: A. Based on the information contained in the staff report and accompanying materials, the proposed Development Code Amendment amending the Zoning Map is consistent with the goals, objectives, policies and programs of the General Plan and is necessary and desirable to implement the provisions of the General Plan. B. The proposed Development Code Amendment amending the Zoning Map will . not adversely affect the public health, safety, and welfare or result in an illogical land use pattern. ..---. ORDINANCE NO. PAGE 2 C. The proposed Development Code Amendment amending the Zoning Map is consistent with the purpose and intent of the Development Code and the Planned Development district 1.1. D. The potential environmental impacts of the proposed Development Code Amendment amending the Zoning Map are less than significant or can be mitigated to a less than significant level as specified in the initial study and Mitigated Negative Declaration. NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Arroyo Grande as follows: SFCTION l' The above recitals and findings are true and correct. SECTION 2' Development Code Section 16.24.020 (Zoning Map) is hereby amended as shown in Exhibit A attached hereto and incorporated herein by reference. SECTION 3' If any section, subsection, subdivision, paragraph, sentence, or clause of this Ordinance or any part thereof is for any reason held to be unlawful, such decision shall not affect the validity of the remaining portion of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision,paragraph, sentence, or clause thereof, irrespective of the fact that anyone or more section, subsection, subdivision, paragraph, sentence, or clause be declared unconstitutional. SECTION 4' Upon adoption of this Ordinance, the Director of Administrative Services shall file a Notice of Determination. SECTION 5' A summary of this Ordinance shall be published in a newspaper published and circulated in the City of Arroyo Grande at least five (5) days prior to the City Council meeting at which the proposed Ordinance is to be adopted. A certified copy of the full text of the proposed Ordinance shall be posted in the office of the Director of Administrative Services/Deputy City Clerk. Within fifteen (15) days after adoption of the Ordinance, the summary with the names of those City Council Members voting for and against the Ordinance shall be published again, and the Director of Administrative Services/Deputy City Clerk shall post a certified copy of the full text of such adopted Ordinance. SFCTION 6: This Ordinance shall take effect on the later of thirty (30) days from the date of adoption. ORDINANCE NO. PAGE 3 On motion by Council Member , seconded by Council Member , and by the following roll call vote to wit: AYES: NOES: ABSENT: the foregoing Ordinance was adopted this day of 2005. ORDINANCE NO. PAGE 4 TONYFERRARA,MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: . TIMOTHY J. CARMEL, CITY ATTORNEY, ' EXHIBIT A GRIES . " ~~(P). Office Mixed Use Planned Oevelo (OMU) to /"'l pment 1:1 (PO 1.1) / / /f' ./ .' :: : '. .' . . . .".,..... / //' / . """ /' , , .... ".' :." "- . -". ..... ...... " .... "~' ", " "-. '...,; .. /........,",. , - f> <:::~~;:=:: , I;r'J2fL'Jjiil;/\ ' , .,.' ' i '-/)-. ; ',.. "" '. '<'" ,,-.~ " : / \ . .,' "", -- '.- ~' ' , ;; ;. ;, ,', ,_, ,", ," ; I '--1.'" I ", / /', '" " ,'. ~-- '-.. ) '. / , 'i ;..,; ! " ' '. " " ., " .. ' ')..."., I I i'-,I I", ", ". '-.'" .,-/ /1 ..-~ ",I I ,~v,." ,-,,--' ;,' -' ' / / .'-.... -"":-"'/ / -; // ")-, ''....., "''-'-' ...........:...,'-, ~_..../ \ \ -', ',/ \ . I"" ' , .", ' ' . ,; ... $(fd-! ,I I ,I '- ,>." '-,',- ", \\ \ \/ \ ;, : /~._ I ". ' ,-",.. '- ,-' ' i '-J... if ~,.; / ", ,I , '-, '~'" '- '''- ," I .' / ............/1 ,..... ' ... 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MEMORANDUM TO: CITY COUNCIL TERRY FIBICH, DIRECTOR OF BUILDING AND FIRE @ FROM: BY: JOHNATHAN HURST, BUILDING OFFICIA~ RE: CONSIDERATION OF ADOPTION OF AN ORDINANCE AMENDING CHAPTER 15.04 OF TITLE 15 OF THE ARROYO GRANDE MUNICIPAL CODE UPDATING THE UNIFORM BUILDING AND RELATED CODES DATE: AUGUST 9, 2005 RECOMMENDATION: It is recommended the City Council adopt the attached Ordinance amending Chapter 15.04 of the Municipal Code updating the Uniform Building and Related Codes. FUNDING: No fiscal impact. DISCUSSION: Historically, every three years the City has adopted the latest versions of the "Uniform Administrative Code," "Uniform Building Code" (Volumes 1, and 2) and its appendix, the "Uniform Mechanical Code," "Uniform Code for Building Conservation," "Uniform Plumbing Code," and the "National Electric Code." This was in keeping with the requirements of Title 24 of the California Code of Regulations and the three-year publishing cycle for new uniform codes. The City Council introduced the proposed Ordinance at the July 26,_ 2005 meeting. The proposed amendments to Chapter 15.04 of Title 15 of the Municipal Code will reflect the following: 1. The actual title of the uniform codes required to be enforced by the City. 2. The adoption of the 2004 California Electrical Code, which became mandatory statewide on August 1, 2005. 3. The specific inclusion of the appendices of the 1997 edition of the Uniform Building Code, and the appendices of the 2000 editions of the Uniform Plumbing and the Uniform Mechanical Codes (this is due to the fact that the State of California does not expressly adopt the appendices to these codes.) 4. Repeal of Sections 15.04.020 and 15.04.030 which will now be incorporated by reference in Section 15.04.010. CITY COUNCIL CONSIDERATION OF AN ORDINANCE AMENDING SECTION 15.04.010 OF THE ARROYO GRANDE MUNICIPAL CODE UPDATING THE UNIFORM BUILDING AND RELATED CODES AUGUST 9, 2005 PAGE 2 These codes become effective and are mandated by State law whether or not the City formally adopts them. AL TERNA TlVES: The following alternatives are provided for the Council's consideration: - Approve staff's recommendation; - Do not approve staff's recommendation; - Modify as appropriate and approve staff's recommendation; - Provide direction to staff. ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AMENDING CHAPTER 15.04 OF TITLE 15 OF THE ARROYO GRANDE MUNICIPAL CODE ADOPTING BY REFERENCE THOSE CERTAIN CODES KNOWN AND DESIGNATED AS THE CALIFORNIA BUILDING STANDARDS CODE, INCLUDING THE CALIFORNIA BUILDING CODE, CALIFORNIA ELECTRICAL CODE, CALIFORNIA PLUMBING CODE, CALIFORNIA MECHANICAL CODE, THE 1997 EDITIONS OF THE UNIFORM HOUSING CODE, UNIFORM CODE FOR THE ABATEMENT OF DANGEROUS BUILDINGS, AND THE UNIFORM ADMINISTRATIVE CODE, WHICH SHALL ALSO INCLUDE THE APPENDICES TO THE 1997 EDITION OF THE UNIFORM BUILDING CODE AND THE 2000 EDITIONS OF THE UNIFORM PLUMBING AND MECHANICAL CODES, AND SUCH CODES, AS AMENDED, SHALL BE THE UNIFORM BUILDING LAWS OF THE CITY THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DOES ORDAIN AS FOLLOWS: SECTION 1: Arroyo Grande Municipal Code Section 15.04.010 is hereby amended in . its entirety to read as follows: 15.040.010. Adoption of Codes. Documents known and designated as the California Building Standards Code including the 2001 editions of the California Building Code, the California Plumbing Code, and the California Mechanical Code, and the 2004 edition of the California Electrical Code, as adopted by the Building Standards Commission of the State of California, and the 1997 edition of the Uniform Housing Code, the Code for the Abatement of Dangerous Buildings, and the Uniform Administrative Code, and the appendices to the 1997 edition of the Uniform Building Code and the appendices to the 2000 edition of the Uniform Plumbing and Uniform Mechanical Codes, and such codes, as amended, are hereby adopted as the building and construction regulations of the City of Arroyo Grande and are incorporated by this reference as though set forth in full. SECTION 2: Arroyo Grande Municipal Code Section 15.04.020 (Amendments - Section 202(d) Uniform Administrative Code) is hereby repealed in its entirety. SECTION 3: Arroyo Grande Municipal Code Section 15.04.030 (California amendments) is hereby repealed in its entirety. SECTION 4: Within fifteen (15) days after passage of this Ordinance, it shall be published once, together with the names of the Council Members voting thereon, in a newspaper of general circulation within the City. ORDINANCE NO. PAGE 2 SECTION 5: This Ordinance shall take effect and be in full force and effect thirty (30) days after its passage. On motion of Council Member , seconded by Council Member , and on the following roll call vote to wit: AYES: NOES: ABSENT: the foregoing Ordinance was adopted this day of ,2005. ORDINANCE NO. PAGE 3 TONY FERRARA, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY 8.k. MEMORANDUM TO: CITY COUNCIL FROM: DON SPAGNOLO, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER ~ SUBJECT: CONSIDERATION OF AWARD OF BID FOR 3/4-TON PICK UP TRUCK FOR THE PUBLIC WORKS DEPARTMENT DATE: AUGUST 9, 2005 RECOMMENDATION: It is recommended that the City Council award the bid of $17,090.12 from Mullahey Ford for a 3/4-ton pick up truck. FUNDING: Funding for this vehicle is included in the approved FY 2005/06 budget. A total of $25,000 was budgeted for the 3/4-ton truck. The cost of vehicle include the bid received from Mullahey Ford of $17,090.12 and the extra low extended care warranty of $1,945 for a total of $19,035.12. DISCUSSION: On July 6, 2005 the Public Works Department solicited bids for a 3/4-ton pick up truck. The City received one (1) response out of the five bid packages sent out for bid. The only bid received was from Mullahey Ford. The City will purchase the Extra Care Extended Warranty for six years or 10,000 miles for $1,945 to ensure that this vehicle will be covered for major repairs for the life of the vehicle based on the City's Replacement Policy. ALTERNATIVES: The following alternatives are provided for the Council's consideration: - Approve staff's request and award the bid to Mullahey Ford; Do not approve staff's request; Modify staff's request as appropriate and approve; or Provide direction to staff. Attachment: Bid Opening Log Sheet ~ ATTACHMENT 1 I , BID OPENING LOG SHEET CITY OF A~ROYO GRANDE BID OPENING: July 21,2005; 2:00 p.m. Public Works Vehicle BIDDER'S NAME, CITY TOTAL Mullahey Ford $17,090.12 Arroyo Grande, CA :~;;1~ Kelly Wetmore ' Director of Administrative Services/City Clerk c: . Director of Public Works City Manager I I 8.1. I I MEMORANDUM TO: CITY COUNCIL/REDEVELOPMENT AGENCY BOARD OF DIRECTORS FROM: STEVEN ADAMS, CITY MANAGER/EXECUTIVE DIRECTOR~ SUBJECT: CONSIDERATION OF LOW/MODERATE INCOME HOUSING SET ASIDE PLANNING AND ADMINISTRATIVE EXPENSE DETERMINATION DATE: AUGUST 9, 2005 RECOMMENDATION: It is recommended that the City Council/Redevelopment Agency Board of Directors approve the annual determination that the planning and administrative expenses of the Agency that are paid from the Agency's Low and Moderate Income Housing Fund for Fiscal Year 2005-2006 are necessary for the production, improvement, or preservation of low and moderate income housing. FUNDING: There is no cost associated with this proposed action. The approved budget for FY 2005-06 includes $10,000 from the Redevelopment Agency Low/Moderate Income Housing Set Aside Fund for administrative and legal costs associated with administering the City's affordable housing program. DISCUSSION: The Community Redevelopment Law (CRL) mandates that monies from the Agency's Low and Moderate Income Housing Fund used to pay Agency planning and general administrative expenses (e.g., salaries, overhead, legal, consultants) cannot be disproportionate to the amount spent from the Fund to actually produce, improve, or preserve low or moderate income housing. As such, the CRL requires the Agency to annually determine that the Agency's planning and administrative expenses that are paid from the Agency's Low and Moderate Income Housing Fund are necessary for the production, improvement, or preservation of low and moderate income housing. The Redevelopment Agency Board of Directors has not been required to approve this determination before because this is the first year that the Agency has budgeted funds from this source for administrative and legal costs. Thus far, $113,000 from the Low/Moderate Housing Set Aside Fund was expended for S:ICITY MANAGERISTEVEICouncil ReportslAnnual Low Mod Housing Set Aside Admin Expenses Determination 8.9.0S.doc CITY COUNCIL LOW/MODERATE INCOME HOUSING SET ASIDE PLANNING AND ADMINISTRATIVE EXPENSE DETERMINATION AUGUST 9, 2005 PAGE 2 assistance to the Courtland Street Senior Affordable Housing Project and $50,000 was expended for the Family Care Network Foster Care Transitional Housing Project on Halcyon Road. Therefore, administrative expenses currently equate to 6.1 % of overall expenditures, which is not disproportionate to project costs, particularly given the high concentration of administrative and legal work involved in administering this program. Proposed expenditures are necessary for the work involved in coordinating proposed projects, as well as administration and legal work required to draft, review and administer affordable housing agreements, which has been substantial. Expenditures are also consistent with the Redevelopment Agency 5- Year Implementation Plan. Jurisdictions normally include this determination as part of the budget approval, but CRL enables the determination to be made at any time during the fiscal year. In the future, staff recommends that the annual determination be incorporated into the budget approval process. AL TERNA TIVES: The following alternatives are provided for the City Council/Redevelopment Agency Board of Directors' consideration: - Approve the annual determination that the planning and administrative expenses of the Agency that are paid from the Agency's Low and Moderate Income Housing Fund for Fiscal Year 2005-2006 are necessary for the production, improvement, or preservation of low and moderate income housing; - Do not approve the annual determination and direct staff to prepare a budget amendment; - Provide staff direction. S:\CITY MANAGERISTEVE\Council ReportslAnnual Low Mod Housing Set Aside Admin Expenses Determination 8.9.0S.doc 8.m. MEMORANDUM TO: CITY COUNCIL FROM: STEVEN ADAMS, CITY MANAGER gf" SUBJECT: CONSIDERATION OF APPROPRIATION FOR DEVELOPMENT OF ,CITY BUDGET AND LONG-RANGE FINANCIAL PLAN CABLE TELEVISION PROGRAM DATE: AUGUST 9, 2005 RECOMMENDATION: It is recommended the Council appropriate $2,500 from the Public, Education and Government Access (PEG) Fund for development of a public information program to broadcast on the City's cable television government channel. FUNDING: The cost for production of the program is estimated not to exceed $2,500. Revenue has been set aside in the PEG Fund for educational programs such as this, but this is the first one actually proposed for production. While the balance of the PEG Fund was projected to be needed for the approved upgrade of the cablecasting system, the delay in cablecasting Planning Commission meetings has resulted in a further increase to the PEG Fund Balance. Therefore, the original funding projections for the upgrade should not be significantly impacted. DISCUSSION: Consistent with discussion at the Budget Workshop, staff is initiating a public education program to provide information to, and obtain feedback from, the community regarding the current budget and long-range financial plan. The specific topics the program is proposed to cover include the 'following: Summary of the approved budget; Overview of efficiency measures implemented; Long-range financial trends; Projected long-term community needs; and Potential revenue strategies to meet long-term needs. In addition to the cable television program, the public information program is proposed to include presentations to community groups, employee associations, CITY COUNCIL BUDGET AND LONG-RANGE FINANCIAL PLAN CABLE TELEVISION PROGRAM AUGUST 9, 2005 PAGE 2 printed materials inserted in utility bills, and individual meetings with community leaders and stakeholders. Professional services to assist in production of the program can be provided by AGP Video, Inc. under their existing contract. The program is proposed to include a presentation featuring department directors highlighting existing efforts and future needs. AL TERNA TIVES: The following alternatives are provided for the Council's consideration: - Approve the proposed appropriation; - Approve the proposed appropriation, but provide alternate direction for the program and/or public education program; - Do not approve the appropriation; - Provide direction to staff. S:ICITY MANAGERISTEVEICouncil ReportslBudget Cable Program Appropriation 8.9.0S.doc 8.n. MEMORANDUM TO: CITY COUNCIL / FROM: STEVEN ADAMS, CITY MANAGER ~ SUBJECT: CONSIDERATION OF AGREEMENT WITH THE OCEANO COMMUNITY SERVICES DISTRICT (OCSD) FOR TEMPORARY PURCHASE OF SUPPLEMENTAL WATER DATE: AUGUST 9, 2005 RECOMMENDATION: It is recommended the Council approve the proposed Agreement with the Oceano Community Services District (OCSD) for temporary purchase of supplemental water. FUNDING: The agreed upon charge to the City will be the rate OCSD pays for Lopez Water, which is currently $736 per acre foot, but will increase to $1,029 in FY 2006-07 and $1,299 in FY 2007-08. Therefore, the maximum cost for the full 100 acre feet would range from approximately $74,000 to $130,000, to be paid for from the Water Fund. DISCUSSION: Water supply and demand forecasts based upon both projected new development and new water supply measures indicate that the City will be able to continue to meet demand in the future. However, the projections also indicate there is little margin for error during the next one to two years prior to implementation of some of the initial measures, particularly if the City experiences low rainfall. . Therefore, staff has negotiated the attached Agreement with OCSD staff to ensure the City will not exceed its water allocations and to avoid the need to institute mandatory conservation measures. The Agreement provides the City with the ability to purchase up to 100 acre feet of supplemental water during each of the next two years if necessary. This additional supply will provide a small buffer while the City constructs Well #10, obtains results from voluntary water conservation efforts, completes the groundwater study, completes implementation of the Price Canyon Reclaimed Water project and/or implements other measures that are part of the Council's long-term supplemental water supply plan. Water purchased is proposed to be from OCSD's allocation of Lopez water. However, groundwater could be substituted if necessary. If approved by the City CITY COUNCIL OCSD SUPPLEMENTAL WATER AGREEMENT AUGUST 9, 2005 PAGE 2 Council, it will then be presented to the OCSD Board of Directors for consideration at their next meeting. AL TERNA TIVES: The following alternatives are provided for the Council's consideration: - Approve the proposed Agreement; - Modify as appropriate and approve the proposed Agreement; Do not approve the Agreement; Provide direction to staff. Attachments: 1. Proposed Agreement for Temporary Purchase of Supplemental Water with OCSD S:ICITY MANAGERISTEVE\Council ReportslOCSD Water Agreement 8.9.0S.doc TEMPORARY WATER SUPPLY AGREEMENT BETWEEN THE CITY OF ARROYO GRANDE AND THE OCEANO COMMUNITY SERVICES DISTRICT THIS TEMPORARY WATER SUPPLY AGREEMENT (hereinafter referred to as the "Agreement") is made and entered into as of ,2005, by and between the City of Arroyo Grande, a municipal corporation (hereinafter referred to as the "City") and the Oceano Community Services District, a community services district organized and existing pursuant to California State Law (hereinafter referred to as the "District"), with reference to the following recitals: RECITALS WHEREAS, City desires to purchase water from District, and WHEREAS, the District desires to sell water to City. NOW THEREFORE, in consideration of the mutual promises, covenants and conditions contained herein, the parties hereto agree as follows: AGREEMENT 1. DISTRICT DELIVERY OF WATER TO CITY. District shall provide City with up to one hundred (100) acre feet of water per year. City shall provide District with at least ten (10) days prior written notice of the amount of water it desires. 2. SOURCE OF WATER AND METHOD OF DELIVERY. Water delivered from the District to City shall be from either the Lake Lopez Reservoir through the Lopez Pipeline System from District's allocation under the Lopez Agreement ("Lopez Water"), or groundwater from the District's allocation under the Water Management Agreement ("Groundwater"). District shall have the option of either providing Lopez Water or Groundwater. 3. METHOD OF DELIVERY. Water provided by District pursuant to this Agreement shall be delivered as follows: A. Lopez Water shall be delivered through the Lopez Pipeline and shall be coordinated through and with the San Luis Obispo County Flood Control and Water Conservation District. ("County of San Luis Obispo") B. Groundwater shall be pumped directly from the groundwater basin by City. If District opts to provide City with Groundwater, City shall monitor and promptly 1 report to District in writing any Groundwater pumped in excess of City's allocation under the Water Management Agreement. 4. PAYMENT FOR WATER. City shall pay to District for all water provided by Districl pursuant to this Agreemenl at the actual rate paid by District to the County of San Luis Obispo for Lopez Water, whether the water provided is from Lopez Water or groundwater. 5. TERM. This Agreement shall commence on the date set forth above and shall continue in effect for a two year period. 6. NOTICE. Any and all notices or other communications required or permitted by this Agreement or by law to be delivered to, served on, or given to any party to this Agreement by any other party to this Agreement shall be in writing and shall be deemed properly delivered, served, or given when personally delivered to the party to whom it is directed, or in lieu of such personal service, when deposited in the United States mail, first class, postage pre-paid, addressed to: IF TO CITY: CITY OF ARROYO GRANDE City Manager 214 East Branch Street Arroyo Grande, CA 93420 IF TO THE DISTRICT: OCEANO COMMUNITY SERVICES DISTRICT District Manager P.O. Box 599 Oceano, CA 93475-0599 Any party to this Agreement may change his address for the purposes of this Section by giving written notice of such change in accordance herewith. 7. MODIFICATION. This Agreement may be amended or modified only by an instrument in writing, stating the amendment or modification, executed by the parties hereto. 8. HEIRS AND SUCCESSORS. This Agreement shall be binding on and shall inure to the benefit of the heirs, executors, administrators, successors and assigns of the parties hereto. 9. SEVERABILITY. Should any portion of this Agreement be held unenforceable or inoperative for any reason, such shall not affect any other portion of this Agreement, but the remainder shall be as effective as though such ineffective portion had not been contained herein. 2 IN WITNESS WHEREOF the parties have executed this instrument as of the date and year above first written. f CITY OF ARROYO GRANDE OCEANO COMMUNITY SERVICES DISTRICT TONY M. FERRARA President of the Board of Directors Mayor ATTEST: ATTEST: KELLY WETMORE Director of Administrative Services/Deputy City Clerk APPROVED AS TO FORM: APPROVED AS TO FORM: TIMOTHY J. CARMEL ALEX SIMAS City Attorney District Counsel 3 9.a. CITY OF ARROYO GRANDE CITY COUNCIL NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that the City Council of the City of Arroyo Grande will conduct a Public Hearing on TUESDAY, AUGUST 9, 2005 at 7:00 P.M. in the Arroyo Grande City Council Chambers, 215 E. Branch Street Arroyo Grande, CA to consider the following item: CASE NO: Development Code Amendment Case No. 05-009; Regulating Formula Businesses in the vicinity of the Village of Arroyo Grande LOCATION: Village Core Downtown and Village Mixed Use districts ENVIRONMENTAL DETERMINATION: Exempt pursuant to Sections 15183,15305,15378, 15061 (b)(3) of the Guidelines of the California Environmental Quality Act (CEQA) and PublicResources Code section 21083.3(e). STAFF CO NT ACT: Teresa McClish, Associate Planner I The City Council will consider a proposed ordinance amending the Municipal Code to define formula businesses and restrict retail and restaurant formula businesses in the Village Core Downtown and Village Mixed Use districts. Generally, formula businesses operate in an extremely standardized manner where' all outlets maintain the same merchandise, fayade, decor, color schemes, signage, trademarks and employee apparel. Information relating to this proposal is available at the Community Development Department, located at 214 E. Branch Street, Arroyo Grande, California, or by telephone at (805) 473- 5420 during normal business hours (8:00 a.m. to 5:00 p.m.) . Any person affected or concerned by these proposals may submit written comments to the Community Development Department before the City Council hearing, or appear and be heard in support of or opposition to the proposals at the time of hearing. If you challenge an item in cou'rt, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council at, or prior to, the public hearing. Failure of any person to receive the' notice shall not constitute grounds for any court to invalidate the action of the legislative body for which the notice was given. . ,~ Publish 1T, 1/8 page display ad, The Tribune, Friday July 29, 2005 - ~c;.. '" , "l, .. &-.~ , r:."'''' '\ .."" c.~O :l.s. -'" CO.$' "c "'!.. ~~c.~ i '. .. \ % "\:, .. (f) ...:.' C ~" ~.J.c::.'\ 0 c , 11--.1 ..- '. <<, '. ' <<'" "--.-5 \ "'" b t5 ~'t\'" . '-l. \.~.' ~~ ,~ .;:: -.'9.~~~~~ ~ (f) Q) - , ,/,0\ 9.'\ n:: .,'~" ,.,' " .~ ~ ., '" '. (f) '. '. ".:,.., (f) Q) .'~~ C .~~'i~ (f) !7..-'. :::l ":'la.' CO "0 '\ CO :::l ~~.(. E ',~'.-' =-~\L.\."E.~.,., '- " 0 , u.. -"J.~ '\ >- .0 .~ , "'0 ~. ...,.- ~ i Q) " i ~ /' U \ 0 ~ t.._____. 0 N " " & u , c:- o '", ':'" , "" :::> " .... /" <( N ::;; / / ./., . 0 c:- .,/ /.... (f) "" .. .- t5 <: N ~ , \ 0 .;:: ~ 5l ~ 0 :::> (f) 0 , .- "0 0 l!! ~ 0 ~ u 0> " " Ol Ol C E! E! OJ :> :> .- c C c II 0 0 -~ N N ,..,..... MEMORANDUM ! ! I TO: CITY COUNCIL FROM: ROB STRONG, COMMUNITY DEVELOPMENT DIRECTO~ BY: TERESA MCCLISH, ASSOCIATE PLANNER4ot.-- SUBJECT: CONTINUED PUBLIC HEARING - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AMENDING ARROYO GRANDE MUNICIPAL CODE CHAPTERS 16.04 AND 16.36 OF TITLE 16 TO DEFINE FORMULA BUSINESSES AND RESTRICT FORMULA BUSINESSES IN THE VILLAGE CORE DOWNTOWN AND VILLAGE MIXED USE/HISTORIC CHARACTER OVERLAY ZONING DISTRICTS (DEVELOPMENT CODE AMENDMENT 05-009) , DATE: AUGUST 9, 2005 I RECOMMENDATION: I I It is recommended the City Council introduce an ordinance to amend Title 16, defining i I and regulating formula businesses in the Village Core Downtown (VCD) and Village Mixed Use (VMU) districts within the Historic Character Overlay (D-2.4). ! I FUNDING: I No funding impact. DISCUSSION: BackQround On March 8, 2005, in response to public comment at the City Council hearing of February 22, 2005, the Council directed staff to ~esearch alternatives on formula business I restrictions in the Village commercial area. Staff reported alternatives to the Council on I April 26, 2005. The Council asked staff to .return with a proposed ordinance prohibiting I formula businesses in the vicinity of the Village. The item was originally advertised for the City Council's public hearing on July 26, 2005; however, it was continued to allow for additional noticing. Several community members did speak both in favor and against the proposed ordinance prior to the item being continued. I , As previously reported, the general concern regarding the potential proliferation of I formula businesses (which may include chain stores and franchises) is that they may detract from the character of an architecturally distinct district, hamper the maintenance of a district with distinct retail personalities, and cause start-up independent retail businesses to be priced out of the real estate market (due to an ability of formula I I , I i CITY COUNCIL DCA 05-009: REGULATION OF FORMULA BUSINESSES AUGUST 9, 2005 PAGE 2 businesses to absorb larger startup costs, pay more for lease space and commit to longer lease contracts). The following is a general list of the pros and cons of the presence of chain stores in a downtown area (according to a University of Wisconsin publication "Let's Talk Business", November 2001): Chains signal opportunity (presence cause loss of community shows other retailers that downtown is successful and suggests economic opportunity) Chains have a higher success rate Chains may threaten independent businesses Chains generate increased Chains may detract from a market niche or shopping/dining in the vicinity community theme by selling standardized products and services Chains may force improved and renewed Chains reduce the re-circulation of profits business practices within the community Chains make good neighbors by investing Incompatible building designs in physical improvements The Historic Character Overlay (HCO D-2.4) combining district that encompasses all of the VCD district and a portion of the VMU district is distinctive due to its historic character, preserved both by policy in the General Plan and regulations in the City's Development Code. In addition to a distinct architecture substantiating and emphasizing the rich agricultural heritage and small town historic "Main Street" of the Village, it is the lack of formula businesses that contributes to the unique character of the VCD and VMU districts and differentiates the Village from most other downtowns across the country. Conversely, it can be argued that formula businesses are a draw to any downtown, increasing the numbers of visitors, and thus commerce, and consequently the vibrancy , of the downtown area. However, given the small geographic area and distinct and I western/agrarian character of the Village districts, and given the policies of the General Plan's Land Use and Economic Development Elements and the intent of Chapter 16.36 for the VCD and VMU districts, there is a clear long term priority to ensure that the vibrancy of the Village is not muted by the eventual propagation of formula businesses. Planninq Commission The Planning Commission reviewed an ordinance to restrict formula businesses in the Village Core Downtown (VCD) district on July 5, 2005 (Please see draft minutes in Attachment 1). Also presented at the public hearing were four alternatives ranging from the least regulatory approach to the most restrictive, following direction from the City I I I S:ICOMMUNITY _DEVELOPMENT\PROJECTSIDCAI05-009 Formula Businesslccsr080905.doc CITY COUNCIL DCA 05-009: REGULATION OF FORMULA BUSINESSES AUGUST 9, 2005 PAGE 3 Council for the Commission's consideration. Present at the hearing were representatives from the Chamber of Commerce, which opposed the ordinance. Additionally, several representatives from the community spoke both in favor and in opposition of the regulation of formula businesses in the Village. The proposed ordinance for City Council consideration is the fourth, and the most restrictive alternative, considered and recommended by the Planning Commission. Proposed Ordinance The General Plan directs the City to preserve and enhance the Village of Arroyo Grande. The objectives, policies and implementation measures pertaining to the Village area have been widely and publicly debated during the process of updating the General Plan, implementing zoning ordinances for establishing the VCD and VMU districts, approving The Design Guidelines for Historic Districts, and in consideration of the Historic Preservation ordinance. The proposed ordinance describes the policies of the General Plan applicable to the regulation of formula businesses in the vicinity of the Village. In an effort to ensure that the City continues to have, and may improve upon, both a diverse retail base and a historic core, the proposal eliminates the potential for the establishment of formula businesses along Branch Street within the VCD district and in a portion of the surrounding VMU district that includes the Historic Character Overlay combining district (D-2.4 ). Specifically, the proposed ordinance includes an addition to Chapter 16.04 to define a formula business, as well as an amendment to Chapter 16.36 prohibiting formula businesses in the VCD and VMU/HCO districts (please refer to map of affected districts in Attachment 2). The proposed ordinance adds the following definition to Section 16.04.070: "Formula business': Shall mean a business, limited to retail trade uses and restaurants, that is required by contractual or other arrangement to maintain standardized services and the same or similar name, tradename, or trademark which causes it to be substantially identical to six (6) or more other establishments, regardless of ownership or location, and which satisfies one of the following two descriptions: a. It offers either of the following characteristics in a style which is distinctive to and standardized among the chain or group: 1. exterior design or architecture, signs or similar features; 2. uniforms, except that a personal identification or simple logo will not render the clothing a uniform; b. It is a fast food restaurant. , The definition consists of retail trade uses and restaurants, and thus excludes other uses such as offices and hotels or inns. Additionally, by defining a "formula business" as a retail establishment having six (6) or more locations, the proposed ordinance allows some I , I S:ICOMMUNITY _DEVELOPMENTlPROJECTSIDCAI05-009 Fonnula Businesslccsr080905.doc CITY COUNCIL DCA 05-009: REGULATION OF FORMULA BUSINESSES AUGUST 9, 2005 PAGE 4 opportunity for local start up stores or restaurants to locate in the Village Core Downtown and Village Mixed Use districts of Arroyo Grande's Historic Character Overlay zone. It should be noted that "fast food restaurant" is defined in section 16.04.070 of the Municipal Code as follows: "Fast food restaurant means an establishment that offers quick food service, which is accomplished through a limited menu of items already prepared and held for service, or prepared, fried, or griddled quickly, or heated in a device such as a microwave oven. Orders are generally not taken at the customer's table, and food is generally served in disposable wrapping or containers." The regulation of formula business is proposed to include an amendment to Section 16.36.030(A) as follows: Table 16.36.030(Al G. SPECIAL USES Land Use IMU TMU VCD VMU GMU FOMU HMU OMU RC Specific D-2.11 (D2.20) Use HCO(D-2.4) Standards Formula Permit NP NP Permit required as identified business required as in D- by underlyinCl land use identified 2.4 ~ underlyinll land use This proposal adds anew land use category to the section describing "Uses Permitted Within Mixed Use and Commercial Districts". There is no proposed prohibition or restriction of formula businesses outside of the VCD or VMU/HCO districts. Attachments 3 and 4 include a list of retail establishments and restaurants in the VCD and VMU districts, as well as a sampling of establishments that include both formula businesses and non-formula businesses to better illustrate the potential application of the proposed ordinance. The proposed ordinance does not create any non-conforming businesses, although it is possible that a current business could become legally non- I conforming under certain circumstances. PUBLIC COMMENTS: A public notice was sent to all property owners within 300 feet of the Village Core Downtown and Village Mixed Use districts and a public notice was placed in the Tribune. Three letters were received from individuals regarding the proposal, one in favor and two in opposition of the proposed ordinance. Additionally, the Chamber of Commerce has written and spoke in opposition of the proposal (please refer to all public comments in Attachment 5). During the July 26, 2005 public hearing, twelve individuals spoke during the public comment period; six in favor and six against the proposed ordinance. S:ICOMMUNITY _ DEVELOPMENTlPROJECTSIDCAI05-009 Formula BusinesslccsrG80905.doc i CITY COUNCIL DCA 05-009: REGULATION OF FORMULA BUSINESSES AUGUST 9, 2005 PAGE 5 ENVIRONMENTAL ASSESSMENT: Staff has reviewed this project in compliance with the California Environmental Quality Act, and has found that the proposal is exempt pursuant to Sections 15183, 15305, 15378, 15061(b)(3) of the Guidelines of the California Environmental Quality Act (CEQA) and Public Resources Code section 21083.3(e). AL TERNA TIVES: The following alternatives are provided for City Council consideration: A. Conditionally allow formula businesses in the VCD, but not in pedestrian storefront locations. A community impact assessment must accompany application. [For example, a Community Impact Assessment may require that a new formula business must demonstrate that it 1) adds a desired type of business, 2) contributes to an "appropriate balance of local or non-local businesses, " and 3) contributes to an "appropriate balance of small, medium and large-sized businesses. " In addition to enhancing the overall diversity of the VCD or VMU district, the new store must be a "good neighbor" and contribute to community life by becoming a member of a business or neighborhood organization, hiring local residents whenever possible, and participating in festivals and . other events.] Land Use IMU TMU VCD VMU GMU FOMU HMU OMU RC Specific Use D-2.11 (D2.20) Standards HCO(D-2.4) Formula Permit CUPI ~ business required as PED Permit required as identified by community identified underlying land use impact ~ assessment underlying must be land use submitted with CUP application B. Conditionally allow formula businesses in the VCD and VMU/HCO districts, but not in pedestrian storefront locations. A community impact assessment must accompany application Land Use IMU TMU VCD VMU GMU FOMU HMU OMU RC Specific Use D-2.11 (D2.20) Standards HCO(D-2.4) Formula ' Permit CUPI CUPI Permit required as ~ business. required as PED PED identified by underlying community identified land use impact I ~ assessment I I underlying , must be I land use submitted with CUP application , I S:ICOMMUNITY _DEVELOPMENT\PROJECTSIDCAI05-009 Formula Businesslccsr080905.doc I , CITY COUNCIL DCA 05-009: REGULATION OF FORMULA BUSINESSES AUGUST 9, 2005 PAGE 6 C. Prohibit formula businesses in the VCD district (This was the amendment proposed by staff for the July 5, 2005 Planning Commission public hearing). Land Use IMU TMU VCO VMU GMU FOMU HMU OMU RC Specific Use 0-2.11 (02.20) Standards HCO(0-2.4) Formula Permit NP business required as Permit required as identified by identified underlying land use !!Y underlying land use D. 'Prohibit formula businesses in the VCD and conditionally allow formula businesses in the VMU/HCO district but not in pedestrian storefront locations. A community impact assessment must accompany application. Land Use IMU TMU VCO VMU GMU FOMU HMU OMU RC Specific Use 0-2.11 (02.20) Slandards HCO(0-2.4) Formula Permit NP CUPI Permit required as A business required as PEO identified by underlying community identified ForD - land use impact !!Y 2.4 assessment underlying must be land use submitted. with CUP application E. Allow formula businesses anywhere in the VCDNMU with a conditional use permit I as long as the design and signage are unique and distinctive based upon an additional finding such as the example provided below. Required Findings for Approval In addition to all of the findings required by Section 16. 16.050, all of the following findings must be made prior to the issuance of a Conditional Use Permit for a Formula business in the VCD or VMU district: 1. The proposed use, together with its design and improvement, is consistent with the unique historic character of VDC or VMU district, would preserve the distinctive visual appearance and shopping experience of the historic Village area for its residents and visitors; and the specific design and signage would be distinctive from other corporate or franchise establishments. 2. The Formula business will be compatible with existing surrounding uses, and has been designed and will be operated in a non-obtrusive manner to i preserve the distinctive character and ambiance of the VCDNMU district; I 2. The Formula business will not result in an over-concentration of I formula businesses in its immediate vicinity or the City as a whole. , F. Direct staff to make other modifications to the proposed ordinance, such as i revising the definition of formula businesses to include a different number of identical establishments. , , S:ICOMMUNITY _DEVELOPMENT\PROJECTSIDCAI05-009 Formula Businesslccsr080905.doc , I , , CITY COUNCIL DCA 05-009: REGULATION OF FORMULA BUSINESSES AUGUST 9, 2005 PAGE 7 G. Do not approve the proposed ordinance. The existing Design Guidelines and Standards require that the exterior design and sign age of any business in the VCDNMU districts are compatible with the district. Attachments: 1. Planning Commission minutes, July 5, 2005 2. Map of the VCD and VMU/HCO districts 3. List of retail/restaurant businesses within the VCD and VMU/HCO districts. 4. Example of how the ordinance would apply to other businesses if they desired to open a store or restaurant in the VCD or VMU/HCO districts. 5. Letter from the Chamber of Commerce, March 24, 2005; J. Hayashi, July 26, 2005; H. and A. Mankins, July 26, 2005; A. Shower, July 26, 2005; M. Bondello, July 28, 2005; and M. Clark, July 29, 2005. I I , I I , i , I I I , I I I I S:ICOMMUNITY _DEVELOPMENTlPROJECTSIDCAI05-009 Formula Business\ccsr080905.doc ! ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AMENDING ARROYO GRANDE MUNICIPAL CODE CHAPTERS 16.04 AND 16.36 OF TITLE 16 TO DEFINE FORMULA BUSINESSES AND RESTRICT FORMULA BUSINESSES IN THE VILLAGE CORE DOWNTOWN AND VILLAGE MIXED USEIHISTORIC CHARACTER OVERLAY DISTRICTS (DEVELOPMENT CODE AMENDMENT 05-009) WHEREAS, the City Council adopted the updated General Plan which became effective October 9, 2001 and requires preservation of the City's unique identity and rural character; and WHEREAS, the City Council amended Title 16 of the Municipal Code (Development Code) in 2003 and 2004 for Mixed Use and Commercial districts to implement policies in the General Plan and establish regulations to encourage the specific character of each zoning district, including the Village Core Downtown (VCD) and Village Mixed Use (VMU) districts that are within the City's Historic Character Overlay District D-2.4 (HCO). WHEREAS, the HCO is intended to "identify, promote, preserve and protect the historic, cultural, and/or architectural resource values and encourage compatible uses and architectural design". WHEREAS, the VCD and VMU districts have historical architecture and small individualized shops and restaurants, that provides an important destination for both tourists and members of the community; and WHEREAS, the continued vitality of the City's economy is dependent upon tourism and upon the ability of the City's historic district to attract both residents and visitors; and WHEREAS, the City has a responsibility to assure adherence to the General Plan and Development Code in meeting the needs and desires of the residents and the community and preserve the characteristics which make the City unique and desirable as a place in which to live and which to visit, and prevent the loss of the rural and historical character that is a particular resource of the VCD and VMU districts; and WHEREAS, the potential proliferation of "formula" businesses may diminish the unique character of the VCD and VMU districts by offering standardization of architecture, interior design and d'cor, uniforms and the like, and which are required to be virtually identical to other such business in other communities; and WHEREAS, the Planning Commission of the City of Arroyo Grande considered Development Code Amendment 05-009 at a duly noticed public hearing on July 5, 2005 in accordance with I the. Development Code of the City of Arroyo Grande, made revisions, and recommended approval to the City Council; and WHEREAS, the City Council has reviewed and considered the information and public testimony presented at the public hearing of July 26, 2005, Planning Commission I ORDINANCE NO. PAGE 2 recommendations, staff reports, and all other information and documents that are part of the public record; and WHEREAS, the City Council finds, after due study, deliberation and public hearing, the following circumstances exist: A. The proposed amendments to Title 16 of the Municipal Code are consistent with the goals, objectives, policies and programs of the General Plan since the goal of the Land Use Element and Economic Development Element is to promote the development of a well balanced and functional mix of land uses and to ensure that development in the City is consistent with the City's character and image. The proposed amendment is necessary and desirable to implement the provisions of the General Plan by maintaining the development and identity of the City's small-town rural characterc specifically in the historical and agricultural setting of the Village Downtown Core and Village Mixed Use districts that are within the City's Historic Character Overlay district. B. The proposed amendments to Title 16 of the Municipal Code would include a new .Iand use category, "formula businesses" and specify which districts such businesses are permitted and the level of permit review required. "Formula businesses" are proposed to be prohibited in the VCD and VMU/HCO (D-2.4) combining district in order to preserve the historic character of the downtown portion of the Village. C. The proposed amendments to Title 16 will not adversely affect the public health, safety, and welfare or result in an illogical land use pattern since the development of retail establishments that conflict with the character of the City's historic district, and that are out of scale in relation to the current pattern of development in such districts creates a threat to the public health, safety, and general welfare by threatening the character. D. The proposed amendments to Title 16 of the Municipal Code are consistent with the purpose and intent ofTitle 16, specifically, Sections 16.36.020(C), 16.36.020(D) and 16.36.020(J) pertaining to the VCD, VMU and Historic Overlay Districts. E. The City has conducted environmental review for adoption of an ordinance amend i Chapters 16.04 and 16.36 of the Municipal Code, and has found that it can be seen I with certainty that there is no possibility that the proposed amendments will have an effect on the environment and therefore this project is exempt from the provisions of CEQA, pursuant to CEQA Guidelines Sections 15378, 15061 (b)(3), 15183, 15305, and Public Resources Code section 21 083.3(e) for the following reasons: 1. Under CEQA Guidelines Section 15061 (b)(3), CEQA review is not required because there is no possibility that this Ordinance may have a significant effect upon the environment. I ORDINANCE NO. PAGE 3 2. Under CEQA Guidelines Section 15378, the proposed amendments are not a project , under CEQA because they will not cause a "direct physical change in the environment" and will not authorize any specific development activity. 3. Any potential indirect secondary impacts of the proposed amendments on the physical environment are speculative and are not reasonably foreseeable, and are, therefore, notsubject to review under CEQA. 4. There is no substantial evidence that the proposed amendments will have the potential to cause a significant impact upon the environment. 5. There is no substantiated opinion or reasonable argument to determine that the proposed amendments will cause impacts that are subject to review under CEQA 6. The proposed text amendments constitute a minor alteration in a land use limitation under CEQA Guidelines Section 15305, and such a land use limitation is a permissible exercise of the city's zoning powers. 7. There are no unusual circumstances that would necessitate CEQA review. 8. Under CEQA Guidelines Section 15183 and Public Resources Code section 21083.3(e), the proposed regulations are consistent with the City of Arroyo Grande General Plan. The following General Plan policies support adoption of the ordinance: : ! Objective LU6-The Historic Village Core (VC) area shall be sustained, enhanced and expanded as the symbolic, functional and unique business center of the City, with diverse mixed uses emphasizing pedestrian-oriented activities and providing I for the needs of residents and tourists. Policy LU6-1 - Designate the historic downtown area as Village Core (VC). The primary purpose of the area designated VC is to provide for the continuation and development of commercial, office, residential, recreational and community facility land use types that reflect and are compatible with the historic, small town nature of. the original Arroyo Grande Village area. Policy ED2-4 - Continue to balance economic goals with strong policies and programs that promote and maintain the community's environment, quality of life, and rural character. Policy ED4-4 - Maintain and enhance the Village Core as a focal point for civic and tourist activities Implementation Policy ED4-1.5 - Work with the Village Improvement Association to , preserve its historic function as the City's commercial and cultural center. i Implementation Policy ED7 -1.2 - Establish clear City standards and thresholds of acceptability for new developments. NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Arroyo Grande, as follows: ORDINANCE NO. PAGE 4 , SECTION 1: The above recitals and findings are true and correct. SECTION 2: Arroyo Grande Municipal Code Section 16.04 is hereby amended by adding the following definition to Section 16.04.070(C): -F- "Formula business". Shall mean a business, limited to retail trade uses and restaurants, that is required by contractual or other arrangement to maintain standardized services and the same or similar name, tradename, or trademark which causes it to be substantially identical to six (6) or more other establishments, regardless of ownership or location, and which satisfies one of the following two criteria: a. It has exterior design or architecture, signs, decor or similar features in a style which is distinctive to and standardized among the chain or group: b. It is a fast food restaurant. SECTION 3: Arroyo Grande Municipal Code Table 16.36.030(A), subsection G. Retail Trade is hereby added to include the following land use categories: Table 16.36.030(A) D. RETAIL TRADE Land Use IMU TMU VCO VMU GMU FOMU HMU OMU RC Specific 0-2.11 (02.20) Use , HCO 0-2.4) Standards Formula Permit NP NP Permit reauired as identified bv business reauired as ForD - underlvina land use identified 2.4 Qy I underlvina land use SECTION 4: If any section, subsection,subdivision, paragraph, sentence, or clause of this . Ordinance or any part thereof is for any reason held to be unlawful, such decision shall not affect the validity of the remaining portion of this Ordinance or any part thereof. The City I Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, or clause thereof, irrespective of the fact that anyone or more section, subsection, subdivision, paragraph, sentence, or clause be declared unconstitutional. , SECTION 4: A summary of this Ordinance shall be published in a newspaper published and circulated in the City of Arroyo Grande at least five (5) days prior to the City Council I meeting at which the proposed Ordinance is to be adopted. A certified copy of the full text I of the proposed Ordinance shall be posted in the office of the Director of Administrative Services/City Clerk. Within fifteen (15) days after adoption of the Ordinance, the summary with the names of those City Council Members voting for and against the Ordinance shall I be published again, and the Director of Administrative Services/City Clerk shall post a certified copy of the full text of such adopted Ordinance. I , SECTION 5: This Ordinance shall take effect thirty (30) days after its adoption. I , , , I ORDINANCE NO. PAGE 5 On motion by Council Member , seconded by Council Member , and by the following roll call vote to wit: AYES: NOES: ABSENT: the foregoing Ordinance was adopted this day of I I I I I ORDINANCE NO. PAGE 6 TONYFERRARA,MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY ATTACHMENT 1 PLANNING COMMISSION DRAFT Page 3 MINUTES JULY 5, 2005 Chair Brown requested a change in the order of the requested Item III.C. be heard next so that Commission would be present for item III.B. (Commissioner Fellows wo s epping down from item 1I1.B.) this would enable a quorum. The . Slon unanimously agreed to the change. - C. Development Code Amendment Case No. 05-009, Formula Businesses; Applicant - City Of Arroyo Grande; Location - Citywide. In the absence of Associate Planner, Ms. McClish, . Mr. Strong, Community Development Director, presented the staff report for consideration of the Ordinance amending Title 16 (Development Code) for regulating formula businesses in the Village Downtown Core. Commission questions: Tait: . Asked for clarification on the definition of ''Visitor Serving Uses". Mr. Strong stated this could be a country inn, bed & breakfast or motel; banks and title companies would not fit the definition because they are not a retail trade nor a restaurant. . Asked for confirmation that the definition for formula businesses should be more than six and not six. Mr. Strong replied it should be more than six. . Asked for clarification on the Alternatives and how they related to businesses that were not storefront. Mr. Strong explained how the Alternatives would work. Fellows: . Which cities did the bulk of proposed Ordinance come from? Mr. Strong explained that he could not state precisely as Ms. McClish did the research, but he knew they were from a substantial range of community sizes, most of them with unique character, whether historical or architectural. Chair Brown opened the hearing for public comment. Steve Ross, Board of Directors, Arroyo Grande Chamber of Commerce, stated they do not support excluding formula businesses from the Arroyo Grande business mix; they understand the importance of the Downtown Village Core to the City; if any restrictions are to be made the area fronting Branch Street would be appropriate. In their opinion; including the Village Mixed Use (VMU) in this Ordinance would be extremely confining and could potentially harm the downtown businesses; many of the businesses are rented and property owner's rights are involved here. They would prefer to see permitting used rather than the "six" units. It appeared that this all started with the potential of "Starbucks" wanting to locate in the Village area. The Chamber understands the concerns of the City, but they are not in favor of this Ordinance. Kristen Barneich, 212 Canyon Way, spoke in favor of the formula business restrictions in the Village; stated that it would help keep the Village unique and charming and in turn this would keep the Village economically viable for the merchants; it would help tourism; restricting formula businesses is not a new concept and other cities have similar ordinances in place which have been very successful; the Village is the hub of a close knit community. -.-- PLANNING COMMISSION DRAFT Page 4 MINUTES JULY 5, 2005 7:35 p.m. Commissioner Parker arrived. Erin O'Connor, resident, spoke in favor of the formula business ordinance; stated he would like to see the charm and character of the Village preserved and this could be quickly and easily lost; the Village is the City's greatest asset. Kimo Pankey, business owner of the Villaqe Centre, stated he was not in favor of the formula business ordinance; he supported all the comments made by Steve Ross. John Guttierreiz Branch Street Deli, strongly recommended the City not pass the ordinance for many reasons; asked what was the matter with a little competition as it could improve a landlords ability to get more rent for their businesses; what about all the other type businesses such as title companies and banks; the Village has grown and there is a need to evaluate this ordinance, maybe it would be better to condition or get more public input. Mick Bondello, 207 McKinley, he would prefer to see formula businesses not come into the Village, as this is the most important and unique part of the City. Chair Brown closed the hearing to public comment. r In reply to a question from Commissioner Parker, Mr. Strong explained that a title company, a bank or office use would not be considered a formula business (not a retail business). Commission Comments: Tait: . Page 1, staff report, second paragraph, suggested add language to state: .. .due to formula businesses having to absorb larger startup costs... . He shared the concerns of John Guttierrez (that business owners might not get top dollar). . Would more locals shop in the Village if there were more chain businesses? Would mixing chain stores with "Mom & Pop" stores be good for the economy? . The Village is a unique area and the reason why most live here. . He could support the recommendation from the staff as it stands. Fellows: . Believes the Ordinance as proposed by staff is not quite strict enough; the City survey in 1999 concluded that 87% wanted to maintain the Village as is; the Commissioner needs to reflect what the majority prefers; the VMU district should be included to preserve the character and charm of the Village. . If he were against this Ordinance he would be against small family businesses and this is something he did not want to be. . The recommendation from staff should be expanded to include the VMU district and he suggested language to read: Planning Commission recommends City Council introduce an Ordinance to amend Title 16, defining and regulating formula businesses in the Village Core Downtown (VCD) and the Village Mixed- Use (VMU) districts; some areas could be excluded such as the south part of Nelson Street, Station Way area and the Bank of America area. I I PLANNING COMMISSION DRAFT Page 5 MINUTES JULY 5, 2005 . Seven is too large a number for formula business definition, five or six would be preferable. . This Ordinance does not include the rest of the City so that leaves plenty of areas for formula businesses to locate. . He believed Alternative 4 would be the way to go, as it is very clear-cut. . Referred to the "WHEREAS" in the Ordinance (number six), which states the City's responsibility to adhere to the General Plan etc. and in his opinion the modified Ordinance should include the VCD and VMU districts in order to uphold the General Plan. Parker: . Agreed with Commissioners Tait and Fellows; she was favoring Alternative 3 or 4. . Businesses in the Village are successful only because they are located in the Village. . Formula businesses would cause loss of character. . We need to look at business usage to see where it fits in Arroyo Grande; if we don't preserve the Village we have nothing. . She had concern with stopping at Tally Ho Creek with the Ordinance; suggested that it needs to run through the Village (including Creekside); in the past it has been discussed to continue the Village character along Traffic Way and suggested a tree planting down the middle of this street. . She would like to make sure that the language for the Ordinance had been carefully reviewed, that there were no loopholes and that it be made really clear so as not to cause misunderstanding in the future. Brown: . We are not reinventing the wheel, this is a business friendly Ordinance already proven to protect unique areas. . VMU allows other uses than residential and over time some residential may convert to a higher use. If this takes place, the Village could be extended from its current boundaries as long as formula businesses are not allowed; he agreed with Commissioner Fellows to extend the area to include VMU and VCD or alternatively a permit process in VMU that would be highly restrictive. In reply to a question from Commissioner Tait, Mr. Strong clarified that the VCD and VMU areas would not include local businesses such as Miner's Ace and Lemos. Mr. Strong clarified language for the Commission in Alternative 4, stating that this alternative would not create legal non-conforming stores (incorrectly stated in the staff report) as these specific stores are within the VMU, but outside of D-2.4 area. After a short discussion the Commission agreed that the language stating "six or more" was acceptable. Commissioner Fellows made a motion, seconded by Commissioner Parker to recommend that the City Council amend Title 16, as provided in Alternative 4, which PLANNING COMMISSION DRAFT Page 6 MINUTES JULY 5, 2005 includes the Village Core Downtown and the Village Mixed Use districts, and adding language to the Ordinance to include the VCD and VMU districts to reflect this. The motion was approved on the following roll call vote: AYES: Commissioners Fellows, Parker, Tait and Chair Brown NOES: None ABSENT: Commissioner Keen B. (Continued from the meeting of June 21, 2005) Viewshed Review 05-007; Applicant - Kevin Stevenson; Location - 585 May Street. Planning Intern, Aaron Brownwood presented the staff report for cons' eration of an appeal of the viewshed review project for construction of a two-story h se. Commissioner Fellows stepped down from this item due to potenti conflict. Aaron Brownwood presented the staff report, stated that two tters in opposition to the project had been received by staff and a rebuttal letter re Ived from the architect; the findings conform; the project does not contain unnecess architectural features; would not impede all views from neighboring properties; th applicant has revised plans to reduce the height of the proposal; the oak trees wou still be seen from May Street and skyline viewshed preserved. In. conclusion, r. Brownwood stated that staff recommends approval of the viewshed review. In reply to questions from the Commission, . The plans have been revised to sh the lowering of the height. . The grading is caused by the na ral slope. . Finding re the "focused view"- is house would have panoramic views and only loses view in one site area. . This project is not require o go to the ARC. Chair Brown opened the he Kevin Stevenson, applic nt, answered Commission questions: . The building p is similar to the neighboring height and the ground scraped to lower the ho e into the hill. . Their archi ct said they could possibly lower the house by one foot. . Agreed t house is large as they have six children; there are other large houses in the ighborhood. Commissio r Parker stated that she was glad to see they were preserving the oaks. Mr. Ste enson then showed pictures of the lot and neighboring houses to the Com . sion and answered further questions from the Commission: . Re the driveways on the corner of McKinley and May Streets and concern for traffic safety, part of their plan is to widen the road to eight feet to match road I I ' - I I ATTACHMENT 2 I I , en I C 0 I .- -- (,) .- L.- -- en Q) 0:: en en Q) c .- en ::J ~ '<f: C'l , ~ Cl '<f: Cl C'l U , / > Cl / ~ ::l / '<t ::2: /' N C. /' , Cl '<f: c := C'l , , 0 Cl 'E Q) I := (/) i 0 ::l I Cl , "0 ~ Q) >< 0 ~ u Q) Q) Cl Cl Jg Cll C) :> :> ~ ~ DO ----- , - I '" Attachment 3 Retail in Village Core Downtown Branch Street Aardvark Gifts 126 B E. Branch St. AG Flower Shop 150 W. Branch St. Arroyo Drug Co. 130 E. Branch St. Brisco's Village Gift Shop 123 E. Branch St. Broadway Jewelers 121 E. Branch St. Buttons n' Bows 119 E. Branch St. , Carol's Specialties and Gifts 102 E. Branch St. Classical Horseman 201 E. Branch St. Down the Aisle 144 W. Branch St. Desire - Sweets and Antiques 124 E. Branch St. Hailey J 134 W Branch Imagemaker's Photo 116 W. Branch St: J.J.'s Food Company 303 E. Branch St. Last Chance Liquors 320 E. Branch St. Lighting Joe's Guitar Heaven 100 E Branch St Lund's 133 E. Branch St Ma Belle 134 W. Branch St Meridian 148 W. Branch St. Posies 106 W Branch St Roots 102A Sportscard Fantasy's 103 E Branch St Stephani's 122 E. Branch The Wardrobe 102 E. Branch Verena's Go Gourmet 127 E. Branch St Village Antique Mart 126-A E. Branch St. , Village Framing 121 W. Branch St Village Goldsmith 102 W. Branch St Village Papery 1101/2 E. Branch St Willis and Bennet 134 E. Branch St. Bridge Street Ira's Bike Shop 107 Bridge St. The Quilt Attic 106 Bridge St Attachment 3 cont. Restaurants in Village Core Downtown Restaurants Branch Street Arroyo Grande Meat Co. 120 E Branch 5t Alphy's Broiler 130-A W. Branch St Branch Street Deli 203 E, Branch St Cafe Andreini 131 E Branch 5t Doc Bernstein's 144 W. Branch St Eclair Bakery 117 E Branch St EI Taco Loco 105 E Branch 5t Gina's Italian Cuisine 138 E Branch $t Old Village Grill 101 E. Branch St Village Cafe , 112 E Branch St Bridge Street Klondike Cafe 104 Bridge St Retail in the Village Mixed UselHistoric Character Overlay D-2.4 The Green Vase 200 Nelson 5t. , Castle Tapestry 134 Nelson 5t. Bridge Street House 132 Bridge St. Affairs of the Heart 146 Traffic Way At a Glance Antiques 410 E. Branch St. Chameleon 415 E Branch St. United Green Mark 200 Traffic Way Restaurants in the Village Mixed Use/Historic Character Overlay D-2.4 Mcclintocks Saloon & Dining House 133 Bridge 5t Thai Kitchen 161 Traffic Way Page 1 0[2 ATTACHMENT 4 Examples of businesses and requirements under the formula business ordinance 'FOl'ml.ml bti~iHess Bath and Nationwide chain w/tradename Yes Not Permitted Body Works and standardized service (NP) Tio Alberto's Community fastfood restaurant No (Minor Use ,with 5 stores, w/tradename and Permit (MUP) standardized service Border's Nationwide chain w/tradename Yes NP and standardized signs and service Jamba Juice Nationwide chain w/tradename Yes NP and standardized signs and service Peet's Nationwide chain w/tradename Yes NP Coffee and standardized signs and service Cookie Community grocery with 2 No MUP if < Crock stores 20,000 sq. ft. Market otherwise NP Cold Stone Nationwide franchise Yes NP Creamery w/tradename and standardized signs and service Ann's Community business with 2 No Permitted (P) Clothing locations if <5,000 sq. ft., MUP if 5001 sq. ft. - 19,999 sq. ft. and NP > 20,000 sq. ft. Gap Nationwide chain w/tradename Yes NP and standardized signs and service New Specialty grocery market with 5 No MUP if < Frontier's store locations 20,000 sq. ft. Market otherwise NP Copelands Corporate store w/locations in 4 Yes NP Sports states w/trademark and standardized signs, uniforms and service Restoration Corporate store w/over 100 Yes NP Hardware locations w/trademark and standardized signs and service The Habit Fast food restaurant that started Yes NP Page 2 0[2 ATTACHMENT 4 Formula " business (burgers, in Goleta and now has 15 stores etc) w/standardized menus and service Hallmark International corporation Yes NP Cards w/trademark and standardized signs and service Texaco gas International corporation Yes NP station w/trademark and standardized signs and service I ---- ---'-- , , ,. I JUl-6-2005 10:20 -~ '-.". - FROM:AGA 8054892239 . TO: 4'1 , . :1 , " ATTACHMENT 5 i c '1 'I ) I \' . \. .' C{'/,o'y C J0' ....,~ . 0 0 & ;0 ARROYO GRANDE VALL~t'..,,p~ ;>ooj" . Chamber of Commerce b~O ' ~Q~ Positioned March 24. 2005 <0,0-% ~b~ for Mayor Tony Ferrara and City Cciuncilmen . ~1')' Progress city of Arroyo Grande P. 0, Box 550 Arroyo Grande. Ca 93421 Dear Mayor FeiTara and City Councilmen, Please accept this latter as an Indication of our concem regarding a potential ordinance (as noted In the San Luis Obispo County Tribune and The Coast News) which would restrict andfor prohibit certain types of businesses from locating Into specific districts in Arroyo Grande. The Board of Directors of the Arroyo Grande Chamber of Commerce is very concemed with this proposed ordinance. We believe that if a business complies with all City regulations. including zoning, permits, and architect and design guidelines, the business should not be discrimInated against nor prohibited from establishing their business, Regardless of whether a business Is 'locally owned or a locally owned franchise, the benefits to the community are great. Each provide employment, occupy otherwise empty space. maintain real estate values, contribute to the community, conlribute to the tax, base, and provide diversity to our City. When business Is encouraged and . successful the whole community thrives- adding desirability and overall economic vitality, We feel the current guidelines, laws, and regulations affecting business are sufficient and do not see the need for Increased restrictions In Arroyo Grande. This proposed ordinance would discourage rather .' than encourag~ ~uslness. . We are happy to have an informal discussion with you any time to exchange Information and points of view. We appreciate any opportunity to meet with you. Sincerely, . ~~()~ SOOW.l\nnch Krista Kodl, Chairman of the Board AnojO Grande, CaliCemla 93.20 (80S) .89.H88 h' (80S)i89.22J9 ...........'UJ"$l-.&..<<.can q,a., JOHN HAYASHI 2460 GRACIA WAY . ~ . _ _, i..'_ - Ie;; !-l:) ARROYO GRANDE, CA 93420 805-489-6112 .July 26, 2005 To: The Arroyo Grande City Council Members Re: .July 26, 2005 City Council Meeting The Formula Business Restriction Policy Request: Please read this letter into the minutes of the .July 26, 2005 City Council Meeting. Dear Council Members, Our family owns commercial property in Arroyo Grande and we oppose any local ordinance that would restrict certain types of businesses from locating into specific districts within Arroyo Grande. We support the Arroyo Grande Chamber of Commerce's position opposing The Formula Business Restriction Policy. Sincerely, ~!.:: C~ Ci~ Cw~l Ci~ M~et' Ci~AHomt.<f DIYU.-\1w' of-Co"'M~ C.i~ (..{~~ Asicc..Pk/.AIn&f' . 11u.\oC q.a. July 26, 2005 !. ' , :~; ; l C: t; () City of Arroyo Grande 214 E. Branch Street Arroyo Grande, California 93420 Subject: Proposed Ordinance, Formula Businesses, Village of Arroyo Grande Honorable Mayor and Members of the City Council: My name is Howard Mankins with a family business and property in the Village. The property is located at 123-131 Branch Street. I am unable to be at the hearing scheduled for tonight, so am briefly putting my feelings concerning this proposed ordnance in this letter. While I am not familiar with specific parts of the proposed Ordinance, I do not believe it is in the true spirit of the free American Enterprise System to restrict a property owners ability to rent to any legitimate business. Competition is good for everyone. Arroyo Grande has been made the way it is by the freedom of choice of tenants, and so far it has worked. We have a thriving business district. Most owners would,not oppose general suggestions or guidelines, An Ordinance we do not need. , I have seen the times' when half of the buildings on, Branch Street had signs, FOR RENT in the windows. In a situation like this, which will happen again, it places an unnecessary burden on any property owner to rent to a new business. Most property owners, I don't believe want to destroy what we have worked so hard to make, into an historic shopping center. New additions to the village are carefully going through a building process, that protects the character of the village, because enough restrictions are already on the books. The building cost today and fee requirements, studies, and time to construct, all add up to higher rents for tenants. That is what we need to worry about. High rents lead to high vacancies. This leads to new and desperate tenant selection by landlords. I like the method, where options and guidelines are given and voluntary selection is given to those who pay the bill. No tenant or landlord is going to do anything that will distract 2l consumer from shopping in his or her place of business. Please to not pass another ordnance for the Village which is contrary to the, AmeriCl!i1 Free Enterprise System. Property owners do not need this to keep the Village as it is. e\ Cl~ Counc.il you very rout ' ~, Cl M~U'" Ci""1 M\om"'f oward & Aileen Mankins l>trec.*w o.f eM- DW C6~Clerk- Am~,.Pl~~1cc" RECEIVED show€~ JUL 2 6 2005 CITY OF ARROYO GRANDE MANFERD JENNINGS SHOWER ANITA SHOWER COMMUNITY DEVElOPMENT 867 North 6th Street Grover City, California 93433 U.S.A. 805/489.9696 July 24, 2005 Rob Strong, City of Arroyo Grande. P. O. Box 550 Arroyo Grande, Ca 93421-0550 Dear Mr. Strong: My husband and I own 320 East Branch Street and 404 East Branch Street in the Village of Arroyo Grande, California. We read the newspaperand.know of the rumors of Star bucks' wishes to descend upon our Village' character and personality. We are aware that someone wants to disrupt what we have in the Village for the sake and fattening of their own bank: account. . Weare absolutely opposed to any of this action. We are in favor of keeping the name brand stores and namebrand.specialty shops, out of the Village and the surrounding area. There isn't anything written in a national or worldwide coffee company leases that limits them to just selling coffee, cups and accessories. It would not surprise us if Starbucks suddenly started selling greeting cards, sandwiches ts, fudge, bakery products, casual throws, their own b of beer and wine, an fresh vegetable or two as well as ice cream from If own privately-held farms. this became reality the City of Arroyo e would hear from Andreini's, the Bc ir Bakery, Brisco's, the apery, The Last Chance Liquor Store and li, the Village Salon, the Village Fudge Factory, Chameleon, Ralph & Duane' Lund's, all of the people who are responsible for our first-class Farmer's Mark and from the 'good doctor' of Dr. Burstein's Ice Cream Lab. Keep the Vill ge special ok beyond the blue prints. ANITA SHO IAS W dCityofAG072405 RECEIVED '(I" _ Michael T. Clark i'.ulJ u 2 7005 456 Carpenter Canyon CITY OF Af~ROYO GRANDE Arroyo Grande, CA 93420 COMMUNiTY DEVElOPMENT July 29, 200S Arroyo Grande City Council - - - - 214 E. Branch Arroyo Grande, CA 93420 Dear City Council: I just read the Tribune article regarding chain stores in the Village. Please keep the chain stores out. If you let one in you open the doors to the fast food giants and goodbye to the quaint Village we love. If people want chain stores they can drive to the Rancho Grande shopping center and shop Wal Mart, Albertsons, Trader Joes , Baja Fresh and Office Max in one convient location with acres of parking. I'll walk to the Village and have breakfast at the Village Cafe. After breakfast, I'll stop at JJ's for some groceries. Please approve the ordinance to block "formula businesses" in the Village. Sincerely, V1{ t--- Michael T.Clark - - Michael C. Bondello OJ;, '~-:~ "01 207 McKinley St. .' , -Ii /. , Arroyo Grande, CA 93420 I '_ ,_ 28 July 2005 Tony Ferrara, Mayor City Council 215 E. Branch St. Arroyo Grande, CA 93420 Dear Mr. Ferrara: I am writing to remind you that the while the four speakers who were in favor of the proposed ordinance restricting formula businesses in the Village Core Downtown and Village Mixed Use/Historic Character will not be in attendance at the August 9th City Council meeting, we would like our opinions to be cited in the record for that evening. I am afraid that too many of the proponents of this ordinance will be absent from this meeting, , so it will quite likely appear to be a one-sided display of opposition to the proposed ordinance. If this does develop, please remind the audience that the proponents are on record as being strongly in favor of this ordinance. Thank you for your consideration of this request. Sincerely, j/~cl3~ Michael C. Bondello i I , J I I.b. MEMORANDUM TO: CITY COUNCIL FROM: ROB STRONG, COMMUNITY DEVELOPMENT DIRECTOR SUBJECT: CONSIDERATION OF 1) AN ORDINANCE ADDING CHAPTER 2.21 TO TITLE 2 OF THE ARROYO GRANDE MUNICIPAL CODE ENTITLED "HISTORICAL RESOURCES COMMITTEE," AND AMENDING CHAPTERS 16.04 AND 16.16 OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE ESTABLISHING A HISTORIC DESIGNATION PROCCESS AND 2) A RESOLUTION ESTABLISHING APPOINTMENT PROCEDURES FOR THE HISTORICAL RESOURCES COMMITTEE (HRC) DATE: AUGUST 9, 2005 RECOMMENDATION: It is recommended the City Council consider and: 1. Introduce an Ordinance adding Chapter 2.21 to Title 2 of the Arroyo Grande Municipal Code entitled "Historical Resources Committee," and amending Chapters 16.04 and 16.16 to Title 16 of the Arroyo Grande Municipal Code establishing a Historic Designation Process; and 2. Adopt a Resolution establishing appointment procedures for the Historical Resources Committee (HRC). FUNDING: No costs are proposed at this stage other than continued Community Development Department staff time to assist the HRC and ad hoc advisory group with the update and expansion of the 1991 Historical Resource Survey. If the HRC and staff determine that professional historical resources consultant assistance would be necessary to complete or expedite the survey, then the budget for FY 2006-07 and subsequent years could be affected. (Preliminary estimates of consultant assistance range from $50,000 to $100,000). Use of South County Historical Society and HRC ad hoc advisory volunteers are proposed to reduce or eliminate the need for a City employed professional consultant. If this cannot be accomplished, implementation may have to be delayed until funding is available. If important historical resources were identified by the survey update, another alternative to utilizing a City consultant would be to require nominated properties to provide research prior to alteration or demolition of candidate resources. DISCUSSION: Environmental Review Staff has reviewed the project in compliance with the California Environmental Quality Act and has determined that the project is categorically exempt under Section 15308 of CITY COUNCIL CONSIDERATION OF ESTABLISHMENT OF A HISTORIC RESOURCES COMMITTEE AND A HISTORIC DESIGNATION PROCESS FOR THE CITY OF ARROYO GRANDE AUGUST 9, 2005 PAGE 2 the CEQA Guidelines involving actions by regulatory agencies for protection of the environment. BackQround In January 2003, the City Council directed staff to investigate alternatives for local designation and/or incentives for the preservation of historic resources in the City. In part, this direction was responding to historic resource issues involving former E. C. Loomis and Son houses and feed store located at 415 E. Branch Street. In a broader context, it was also related to the Development Code Update and the reconsideration of the Design Guidelines and Standards for Design Overlay District D-2.4 (Village Area Historic Districts ). The original Design Guidelines for the Arroyo Grande Village area were established in 1985. The Design Overlay District zoning designation was part of the 1991 Development Code. In 1991, the City conducted a "Historic Resource Survey" to document existing buildings and sites in the Village area. This document served as a basis for the revised Design Guidelines for Historic Districts, which was adopted in November 1994. More recently, the City again revised Design Guidelines and Standards for Historic Districts in April 2003 as part of a Development Code Update. Changes included enlargement of the Design Overlay District (D-2.4) to include portions of Crown Hill, the Valley View Tract (Larchmont, Wilton and Vernon Streets), and other properties north, east, south and west of the original area. The 2003 update included an informal survey conducted by staff showing "historic character" buildings outside of the original Design Overlay District. Although most of the oldest buildings considered as potential historic resources are concentrated in the Village Historic Districts, there are other potentially valuable historic resources in outlying parts of the City and the surrounding planning area. On July 12, 2005, the City Council held a public hearing to consider the proposed Historic Resource policies. The Council gave specific direction to staff related to several issues which are discussed near the end of this report. Analvsis Historic preservation is inherent in the Urban Land Use Element of the 2001 General Plan. Objective LU-6 states: ''The Historic Village Core (VC) area shall be sustained, enhanced and expanded as the symbolic, functional and unique business center of the City, with diverse mixed uses.. .... Policy LU 6-1 specifically refers to "land use types that reflect and are compatible with the historic, small town nature of the original Arroyo Grande Village area", The Urban Land Use Element also contains Town Character and Community Design Guidelines, including: the "preservation of historic structures, especially within the Village Core area, ,but also extending to its rural fringe and agricultural environs" and "The retention of this character is one of the basic purposes of planning and growth management, according to the citizens of Arroyo Grande." Further, Policy LU 12-5 specifically provides: "Preserve significant historic and cultural landmarks". CITY COUNCIL CONSIDERATION OF ESTABLISHMENT OF A' HISTORIC RESOURCES COMMITTEE AND A HISTORIC DESIGNATION PROCESS FOR THE CITY OF ARROYO GRANDE AUGUST 9, 2005 PAGE 3 Efforts to establish a Historic Resources Committee and a historic designation process are additional recommended steps to create and promote the adoption of a broader local historic designation program for the City of Arroyo Grande. This historic designation program would implement General Plan objectives and policies and help the City meet the following specific goals: , / A. Promote the designation, preservation, restoration, safety, and use of historic structures to enrich the lives of future generations, providing opportunities to enjoy and learn about the community's history; B. Improve the local economy by attracting tourism and other business to the community; C. Foster a sense of community identity and pride; D. Stabilize and improve the economic value of historic properties and neighborhoods; E. Enhance the community's aesthetics and unique historic character; F. Encourage and provide incentives to property owners to preserve and restore historic properties, and to sensitively rehabilitate them for adaptive re-use when necessary. Architectural Review Committee and PlanninQ Commission Recommendations During 2003 and 2004, with the valuable assistance of two student planning interns, the Community Development Department formulated several alternative approaches for ARC and Planning Commission review and recommendation regarding the formation of a Historic Resources Committee and a process for the designation of eligible local historic resources. At several regular meetings, the ARC and Planning Commission discussion provided direction to staff regarding the historic designation process and the recommended duties of an HRC. Both the ARC and Planning Commission concluded that several tasks or steps needed to be accomplished in order to implement a local historic resource designation process. The recommended next steps are: a) Establishment of a Historic Resources Committee; b) Development of criteria for local designation of historic resources; c) Establishment of a review process for designating historic resources for listing on a local register, which has legal authority when passed as an ordinance; d) Expansion and update of the 1991 Historic Resource Survey; e) Create incentives for historic preservation, restoration and reuse CITY COUNCIL CONSIDERATION OF ESTABLISHMENT OF A HISTORIC RESOURCES COMMITTEE AND A HISTORIC DESIGNATION PROCESS FOR THE CITY OF ARROYO GRANDE AUGUST 9, 2005 PAGE 4 a) Establishment of a Historic Resources Committee (HRC) A Historic Resources Committee (HRC) should be established to oversee, assist and conduct the initial review, expansion and update of the 1991 Historic Resource Survey, as well as subsequent periodic reviews of additional historic resource designation nominations. The HRC should be comprised of individuals knowledgeable about aspects of historic preservation, such as architecture, local history, construction, historic preservation techniques, and related environmental rules and regulations. Proposed appointment procedure for HRC members is similar to ARC appointments with the Mayor and each Council Member appointing a representative. HRC members will serve a term ending the January 31st following the expiration of the term of the respective appointing Mayor or Council Member. Any HRC member can be removed by a majority of the Council. The HRC should assist and/or coordinate, conduct and organize a comprehensive survey of all potentially historically significant properties in the City of at least 50 years of age, updating the survey when necessary and nominating or screening all surveyed properties deemed historically significant and eligible for listing on a local, State, or Federal register. The HRC shall have the authority to create ad hoc subcommittees for various research tasks including the update and expansion of the 1991 Historical Resource Survey. The Architectural Review Committee (ARC) and Planning Commission should periodically conduct a joint workshop with the HRC to discuss nominated properties recommended by the HRC. Owners of resources recommended or nominated by the HRC for inclusion on a local historic resources register shall be notified. The Planning Commission and ARC recommended that the HRC should have limited responsibilities in order to avoid the creation of another City advisory body that must meet regularly and coordinate with staff, advisory, appointed and elected officials. The HRC's responsibilities would include recommending criteria, overseeing or assisting comprehensive survey updates and expansions, and nominating potentially significant surveyed properties to the local historic register or State and Federal registers. The HRC should meet at least quarterly or more frequently when requested by the Community Development Department to evaluate nominations submitted to the City for consideration. With this concept, the ARC, an existing City advisory body, would be responsible for: . Review of criteria for local designation of historic resources; . Review of nominations (both from the HRC and the public) of historic resources for listing on the local historic register and providing recommendations to the Planning Commission regarding listing of nominated properties. . Review of proposed alterations to designated historic resources and providing recommendations to the Community Development Director or Planning Commission regarding approval of these projects. CITY COUNCIL CONSIDERATION OF ESTABLISHMENT OF A HISTORIC RESOURCES COMMITTEE AND A HISTORIC DESIGNATION PROCESS FOR THE CITY OF ARROYO GRANDE AUGUST 9, 2005 PAGE 5 The ARC would recommend to the applicant and the Community Development Director methods to mitigate damage or to preserve, restore, rehabilitate, enhance, or complement affected designated historic resources. The Community Development Director's decisions regarding projects involving alterations to designated historic resources would be reported to the Planning Commission and subject to appeal per the Minor Use Permit consent agenda process. The Planning Commission would formally decide which nominated resources shall be listed on the local register based on the recommendations of the HRC, the ARC and the Community Development Director. With information provided by the HRC, the ARC and the Community Development Director, the Planning Commission would also determine the significance of, and potential impacts to, historic resources under CEQA. If an owner disagrees with a Commission decision or if the Council disagrees with a designation decision, it can be appealed. The proposed Historic Designation Ordinance includes provisions allowing owners of historic resources to protest compliance due to significant economic hardship or for other significant reasons approved by the City Council. Currently, Community Development Department decisions regarding proposed alterations to significant historic resources (usually based on the ARC's recommendations), can be appealed to the Planning Commission and/or the City Council. b) Development of Criteria for Local Designation of Historic Resources Historic resources may be listed on a local register under a local historic designation ordinance, regardless of whether or not they are eligible for listing on the National Register of Historic Places or the California Register of Historical Resources. A local historic designation ordinance should establish criteria by which a resource can be judged in terms of its eligibility for listing on the local register. The following are preliminary recommended criteria for establishing the local significance of historic resources. These criteria are used by other local government agencies and included in their historic preservation ordinances and were supported by the ARC and Planning Commission. An initial task of the HRC would be to review, refine, or amend' these criteria for ARC and Planning Commission recommendation and City Council adoption. Any site improvement or property over fifty (50) years of age or, in special circumstances, under fifty (50) years, may be designated as a historic resource if it meets one or more of the following criteria: . Is representative of a particular architectural style or reflects special elements of a distinct historical period, type, style or way of life important to the City; . Is a type of building or is associated with a business or use which was once common, but is now rare; CITY COUNCIL CONSIDERATION OF ESTABLISHMENT OF A HISTORIC RESOURCES COMMITTEE AND A HISTORIC DESIGNATION PROCESS FOR THE CITY OF ARROYO GRANDE AUGUST 9, 2005 PAGE 6 . Is representative of the evolution or development or associated with the cultural, religious, educational, political, social or economic growth of the community, County, State or Nation; . Is representative of the work of a master builder, engineer, designer, artist or architect whose individual genius influenced his/her era; . Is the site of a historical event or is associated with persons or events that have made a meaningful contribution to the Nation, State or community; . Has a high potential for yielding information of archaeological interest; . Embodies elements of outstanding or innovative attention to architectural or engineering design, detail, craftsmanship or use of materials; . The unique location or singular physical characteristic represents an established and familiar visual feature of the neighborhood, community or City; . Is a geographically, definable area, possessing a significant concentration or continuity of site improvements, natural features or objects unified by past events or physical development; or . Is an unusual natural feature. c) Establishment of a Review Process for Designating Historic Resources for Listing on a Local Register The following is the staff, ARC and Planning Commission recommended process for reviewing nominations of historic resources to the local register. Nomination Process Nomination of a historic resource to the local historic register should be made to the ARC on a form prepared by the Community Development Director assisted by the' Historic Resource Committee. This form should be available for the public at the Community Development Department. A nomination can be submitted by (1) the owner of record of the property or structure, (2) the HRC, (3) the ARC, (4) the Planning Commission, (5) the City Council, (6) by any resident of the City of Arroyo Grande, or (6) any organization with a recognized interest in historical preservation. The nomination should clearly identify the proposed historic resource and shall set forth reasons justifying the proposed designation. Notification of nomination should be given to the owner of record of the property or structure within ten (10) days, although the nomination does not require the owner's permission. Review of Nomination and Recommendation Nomination 1. The HRC shall review and make a recommendation regarding the initial nomination applications for conformance with the purpose and standards of any local historic designation ordinances. The HRC may also review and make recommendations'regarding subsequent individual nomination applications to assist the ARC. CITY COUNCIL CONSIDERATION OF ESTABLISHMENT OF A HISTORIC RESOURCES COMMITTEE AND A HISTORIC DESIGNATION PROCESS FOR THE CITY OF ARROYO GRANDE AUGUST 9, 2005 PAGE 7 2. The ARC shall conduct a study of the proposed designation and make a recommendation based on such documentation as it may require. The HRC's recommendation for approval, rejection or modification of the proposed designated resource shall be forwarded to the Community Development Director and Planning Commission within a specified time frame; 3. The Community Development Director shall provide comments to the Planning Commission regarding 1) the relationship of the proposed designation to the General Plan and any applicable specific plan, 2) staff opinion as to the effect of the proposed designation upon the surrounding neighborhood, and 3) staff opinion and recommendation as to any other planning consideration that may be relevant to the proposed designation; 4. The property owner of a structure nominated for historic resource designation may notify the City in writing of his/her decision to withhold or grant permission for the historic resource designation at any time after the nomination, but prior to designation. Notice and Hearinq 1. The Planning Commission shall schedule a public hearing on a proposed designation to be held within sixty (60) days after receiving a recommendation from the Community Development Director and Architectural Review Committee. 2. The City shall send written notice of the date, time, place and purpose of the hearing at least ten (10) days before the hearing to the owner(s) of record and the applicant (if other than the property owner) and owners of property within three hundred (300') feet of the proposed historic designation. Decision 1. The Planning Commission may approve, approve with modifications, or disapprove a recommendation for designation of a local historic resource if the property owner consents to historic designation. Determination of the Planning Commission is subject to appeal to the City Council. 2. The City Council may approve, approve with modifications, or disapprove a recommendation for designation of a local historic resource if the property owner does not consent to the historic designation. d) Expansion and Update of The 1991 Historic Resource Survey The 1991 Historic Resource Survey needs to be expanded and updated for several reasons. First, the 1991 survey only examined historic resources in the Village Commercial, Village Residential, and original Historic Design Overlay zoning districts. There are many other potential historic resources in the subsequent D-2.4 Overlay expansion area and other parts of the City and surrounding planning area that need to be documented. Second, the 1991 survey was conducted more than a decade ago. Third, additional information regarding historic resources is needed to complete the forms utilized by the California State Office of Historic Preservation to document historic resources (the Department of Parks and Recreation 523 Form). Finally, the 1991 survey mainly considers historic resources of architectural CITY COUNCIL CONSIDERATION OF ESTABLISHMENT OF A HISTORIC RESOURCES COMMITTEE AND A HISTORIC DESIGNATION PROCESS FOR THE CITY OF ARROYO GRANDE AUGUST 9, 2005 PAGE 8 importance and may neglect to mention resources significant for other reasons, such as association with a significant historic person or event. These are all compelling reasons to conduct an expansion and update of the 1991 Historic Resource Survey. Therefore, it is proposed that the HRC undertake an ongoing survey and research effort to identify historic areas, sites, improvements and objects in the City and its planning area. For resources deemed potentially historically significant, sufficient information should be collected to complete the Department of Parks and Recreation 523 Form. Completion of the Form will provide adequate information for nominating a resource to either the California Register of Historical Resources or the National Register of Historic Places. Surveyed properties deemed historically significant and eligible for listing on a local, State, or Federal register should be included on a local historic register. The City of Arroyo Grande does not yet have such a register. but one should be created. Surveyed resources determined historically insignificant should not be included on this local register. This is important because any property identified on a local. state, or national register are automatically presumed to be a significant resource for the purposes of the California Environmental Quality Act (CEQA), unless a preponderance of evidence indicates otherwise (PRC S 5024.1, 14 CCR S 4850). Any such resource can potentially trigger environmental review under CEQA in association with discretionary projects potentially affecting the resource. It should also be noted that an undesignated historic resource or a resource not listed on a survey can still be determined significant for the purposes of CEQA. For these resources, significance must be determined using the criteria for Califomia Register listing (PRC S 21084.1,14 CCR S 15064.5(3)). Non-designated properties may still be important "contributing" elements to the "setting" of historic resources, and could be a separate category of local historic resources designation, subject to conservation or consideration by the City in subsequent Design Guidelines and Standards. e) Create Incentives for Historic Preservation, Restoration and Reuse Concurrent with HRC review of criteria, survey and nominations, staff is pursuing formulation of at least two proposals to create incentives for historic preservation, restoration and reuse: 1) Mills Act tax relief 2) Uniform Code for Building Conservation. The Mills Act is a State of California tax reduction program similar to Williamson Act for agricultural conservation contracts, in which historic designated properties are eligible for property tax relief in exchange for voluntary agreements for preservation. The second is a potential case-by-case consideration of alternative building code requirements, which have already been adopted by the City as part of the Uniform Code for Building Conservation (UCBC). Chapter 6 of the UCBC deals with designated historic buildings and chapter 15 gives the City Building Official flexibility CITY COUNCIL CONSIDERATION OF ESTABLISHMENT OF A HISTORIC RESOURCES COMMITTEE AND A HISTORIC DESIGNATION PROCESS FOR THE CITY OF ARROYO GRANDE AUGUST 9, 2005 PAGE 9 and discretion for historical structure rehabilitation, restoration and reuse. Minimum ADA, plumbing, electrical and structural requirements for proposed reuse conversions can be authorized on ,a case-by-case basis to facilitate use of designated historic resources. The HRC, ARC and Planning Commission may propose other incentive programs after review of other California cities historic preservation programs. The proposed HRC composition and historic resource designation process alternatives were previously considered and discussed by the ARC, Planning Commission and City Council at public meetings of June 4, 2004, August 9, 2004, February 22, 2005 and June 7, 2005. The City Council directed staff to initiate the process to establish a historic resource designation program, however, the necessary Resolutions and Ordinances were deferred until now due to overloaded agendas and other staff projects. City Council Public Hearing - July 12, 2005 On July 12, 2005 the City Council held a public hearing about the proposed Historical Resource policies. The Council provided staff with direction related to Ordinance recital language and residency and technical qualifications of HRC Members. Staff proposed language is presented in legislative draft format and in the attached proposed Ordinance and Resolution. Ordinance Language WHEREAS, the formation of a Historical Resources Committee and the creation of a process for historical resource determination will sontr=ol tl:lo domolition of historic structures in or-Elor to ~r-oGervo, to the groatost oxtont fom:il3lo, tl:1o divorso qualities that aofino tl:lo sharactor of tho community of Arr=oyo Gr-ande and that refloct tho distinct phasos of its cultur-al ana architectural history; allow discretionary review of proposed exterior alterations and demolition of historic structures under the California Environmental Quality Act. This heiQhtened level of review will serve to preserve the diverse Qualities that define the character of the community of Arroyo Grande and that reflect the distinct phases of its cultural and architectural history throuQh. public noticinQ requirements. the creation of proiect alternatives. the implementation of mitiQation measures and Droiect aDProvals based upon CEQA findinqs: Residency and Technical Knowledge Language The Committee shall consist of five (5) members. All members should have knowledQe of the history of Arroyo Grande. its buildinQs. people and events. This knowledQe can typically be Qained throuQh time spent in the community as a resident or business owner or throuqh active research or membership in orQanizations related to the studv or preservation of local history. Members do not need to currently reside within the City of Arrovo Grande. Members can serve on other advisory bodies of the City (as allowed since some advisory bodies do not allow members to serve on other advisory bodies). CITY COUNCIL CONSIDERATION OF ESTABLISHMENT OF A HISTORIC RESOURCES COMMITTEE AND A HISTORIC DESIGNATION PROCESS FOR THE CITY OF ARROYO GRANDE AUGUST 9, 2005 PAGE ,10 althouqh preference should be made for volunteers without other advisorv body commitments. Three (3) mombor-s e:hould have knowlodge about aspocts ef f:1istoric I'lreservation, such as arsf:1itestur-e, local history, construction, histori6 1'lr-l3sorvution tochniElues and CEQ/\. Technical knowledge should consist of Iaeing able to read and interpret FAe6f:1al'li6al, architectur-al and ongineering drawings as thoy rolate' to the appearance of a proposoEllauilEling, e:ignage, structur-e, and lands6aping upon a site and the surroundiFlg 6eFAFAunity. The two (2) other membors of tf:1e Committee may, but need not, havo t06f:1ni6al tlistoric preservation knowledge. Knowledqe and technical skills related to historic preservation. CEQA and architecture are desirable but are not specificallv required. Attachments: 1. Planning Commission staff report and minutes dated June 1, 2004. 2. Planning Commission draft minutes dated June 21, 2005. 3. Letter dated June 21, 2005 from Gary Scherquist. ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ADDING CHAPTER 2.21 TO TITLE 2 OF THE ARROYO GRANDE MUNICIPAL CODE ENTITLED "HISTORICAL RESOURCES COMMITTEE", AND AMENDING CHAPTERS 16.04 AND 16.16. OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE ESTABLISHING A HISTORICAL DESIGNATION PROCESS WHEREAS, the City's 2001 General Plan objectives and policies promote the designation, preservation, restoration, safety, and use of historic structures to enrich the lives of future generations, previding opportunities to enjoy and learn about the community's history; WHEREAS, in January, 2003, the City Council directed staff to investigate alternatives for local designations and/or incentives for the preservation of historic resources in the City; WHEREAS, the formation of a Historical Resources Committee and the creation of a process for historical resource determination will improve the local economy by attracting tourism and other businesses to the community; WHEREAS, the formation of a Historical Resources Committee and the creation of a process for historical resource determination will foster a sense of community identity and pride; WHEREAS, the formation of a Historical Resources Committee and the creation of a process for historical resource determination will stabilize and improve the economic value of historic properties and neighborhoods; WHEREAS, the formation of a Historical Resources Committee and the creation of a process for historical resource determination will enhance the community's aesthetics, interest, and unique historic character; WHEREAS, the formation of a Historical Resources Committee and the creation of a process for historical resource determination will encourage and provide incentives to property owners to preserve and restore historic properties, and to sensitively rehabilitate them for adaptive re- use when necessary; WHEREAS, the formation of a Historical Resources Committee and the creation of a process for historical resource determination will allow discretionary review of preposed exterior alterations and demolition of historic structures under the California Environmental Quality Act. This heightened level of review will serve to preserve the diverse qualities that define the character of the community of Arreyo Grande and that reflect the distinct phases of its cultural and architectural history through, public noticing requirements, the creation of project alternatives, the implementation of mitigation measures and project approvals based upon CEQA findings; WHEREAS, the City Council finds, after Architectural Review Committee and Planning Commission study and recommendations, deliberation and public hearings, the following circumstances exist: A. The proposed amendments to Titles 2 and 16 of the Municipal Code are consistent with the goals, objectives, policies and programs of the General Plan, including the ORDINANCE NO. . PAGE 2 Economic and Land Use elements, and are necessary and desirable to implement the provisions of the General Plan; B. The proposed amendments to Titles 2 and 16 of the Municipal Code will not adversely affect the public health, safety, and welfare or result in an illogical land use patte rn; C. The proposed amendments to Titles 2 and 16 of the Municipal Code are consistent with the purpose and intent of Titles 2 and 16; D. The City has conducted environmental review for adoption of an ordinance amending Titles 2 and 16 of the Municipal Code, and has found that it can be seen with certainty that there is no possibility that the proposed amendments will have an effect on the environment and therefore this project is exempt from the provisions of CEQA, pursuant to CEQA Guidelines Section 15061 (b)(3); and NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Arroyo Grande, as follows: SECTION 1: The above recitals and findings are true and correct SECTION 2: Arroyo Grande Municipal Code chapters and sections set forth herein below are hereby amended as shown in Exhibit "A" attached hereto and incorporated by this reference. a. Add Chapter 2.21; b. Amend Section 16.04.070.C. in Chapter 16.04; c. Add Section 16.16.211; d. Add subsection 9 to Section 16.16.060.B. in Chapter 16.16 SECTION 3: If any section, subsection, subdivision, paragraph, sentence, or clause of this Ordinance or any part thereof is for any reason held to be unlawful, such decision shall not affect the validity of the remaining portion of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, or clause thereof, irrespective of the fact that anyone or more section, subsection, subdivision, paragraph, sentence, or clause be declared unconstitutional. SECTION 4: A summary of this Ordinance shall be published in a newspaper published and circulated in the City of Arroyo Grande at least five (5) days prior to the City Council meeting at which the proposed Ordinance is to be adopted. A certified copy of the full text of the proposed Ordinance shall be posted in the office of the Director of Administrative Services/City Clerk. Within fifteen (15) days aft13J adoption ofthe Ordinance, the summary with the names of those City Council Members voting for and against the Ordinance shall be published again, and the Director of Administrative Services/City Clerk shall post a certified copy of the full text of such adopted Ordinance. SECTION 5: This Ordinance shall take effect thirty (30) days after its adoption. ORDINANCE NO. PAGE 3 On motion by Council Member , seconded by Council Member , and by the following roll call vote to wit: AYES: NOES: ABSENT: the foregoing Ordinance was adopted this day of ~ ORDINANCE NO. PAGE 4 TONY FERRARA, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY ---..... Exhibit A Add Chapter 2.21 Historical Resources Committee Sections: 2.21.010 Created 2.21.020 Terms of office. 2.21.030 Appointments and vacancies. 2.21.040 Qualifications of Committee members. 2.21.050 Nonattendance. 2.21.060 Rules. 2.21.070 Meetings. 2.21.080 Functions, duties and procedures. 2.21.090 Guiding purposes in reviewing projects. 2.21.010 Created. There is established the Arroyo Grande Historical Resource Committee, (the "HRC" or "committee"), consisting of five members who shall serve without compensation. 2.21.020 Terms of office. Members of the committee shall be appointed to serve for a term as specified by resolution of the city council. 2.21.030 Appointments and vacancies. Appointments for the committee and the filling of vacancies shall be made in the manner provided by resolution of the city council. Vacancies shall be filled for unexpired terms only. All members of the committee shall serve at the pleasure of the council. 2.21.040 Qualifications of committee members. Qualifications of members of the committee shall be established by resolution of the city council. 2.21.050 Nonattendance. Absence from three consecutive regular committee meetings or twenty- five (25) percent of the regular meetings during anyone-year period, without the formal consent of the council, shall constitute the resignation of such absent member and the position declared vacant. 2.21.060 Rules. The committee shall adopt bylaws, which shall establish rules, regulations, and procedures to conduct meetings. The bylaws shall include provisions for selection of a chairperson and vice-chairperson. 2.21.070 Meetings. The committee shall hold at least one Jegular meeting each quarter, on a day and time designated by the committee; additional meetings may be scheduled as needed. All the committee meetings shall be held in public at the city council chambers, unless otherwise noticed. 2.21.080 Functions, duties and procedures. A. The function of the committee shall be to make recommendations to the Architectural Review Committee, Planning Commission and/or Community Development Director (the "director") regarding the administration of the provisions of Title 16, whenever applicable, in a manner that will: 1. Se consistent with the requirements of the General Plan and of Title 16 2. Se consistent with requirements outlined in 2.21.090. S. The committee shall prepare, review and recommend appropriate historical preservation criteria, standards, and guidelines, subject to planning commission and city council approval. Criteria, standards and guidelines are to be set forth in pictorial and/or narrative form. The committee shall periodically review these criteria, standards and guidelines and may make recommendations for appropriate amendments. C. The committee shall make itself available to advise and assist the architectural review committee, planning commission, and director in the. application of its historical preservation criteria standards and guidelines for projects during schematic and development stages. D. The committee shall review and make recommendations to the architectural review committee, planning commission and/or director regarding applications for architectural. review, pursuant to the development code, unless the ARC or the director certifies that the nature of the work is minor or incidental and need not be reviewed by the committee. When, in the opinion of the director, applications for projects other than architectural or sign review may create an architectural impact contrary to the objectives of this chapter, the committee may review the application prior to the planning commission and/or city council hearings. E. The committee shall have the authority to review and approve plans pursuant to specific conditions of project approval imposed by the planning commission or city council. F. The committee may nominate places, properties, structures or areas which they recommend be considered for local, state or national historical designation or considered as important setting or contributing to the historic character of their environs. G. The committee shall promulgate and publish such standards as are necessary to supplement the provisions of this article to inform property owners, tenants and the general public of those standards of review by which applications for development permits are to be judged. Any such standards shall be approved by the city council. 2.21.090 Guiding purposes in reviewing projects. In reviewing potential designations, the committee shall be guided by the following purposes and intent: A. To ensure consistency with the general plan and compliance with the provisions ofTitle 16; S. Promote the designation, preservation, restoration, safety, and use of historic structures to enrich the lives of future generations, providing opportunities to enjoy and learn about the community's history; C. Improve the local economy by attracting tourism and other business to the community; D. Foster a sense of community identity and pride; E. Stabilize and improve the economic value of historic properties and neighborhoods; , F. Enhance the community's aesthetics, interest, and unique historic character; G. Encourage and provide incentives to property owners to preserve and restore historic properties, and to sensitively rehabilitate them for adaptive re-use when necessary. , Amend, to include the following new definitions: Sec. 16.04.070.C. "Alteration - Historical Resources" means any exterior change or modification, through public or private action, of any historical resource, outstanding historical resource, or of any property located within an historic district which involves exterior changes to or modification of a structure, its surface texture, or its architectural details; new construction; demolition; relocation of structures onto, off of, or within a designated property; or other changes to the site affecting the significant historical or architectural features of the property. "Development permit" for the purposes of historic resources means a permit whose issuance is approved by the Planning Commission or upon appeal by the city council and which authorizes its recipient to make specified exterior alterations to a historical resource, outstanding historical resource, or to an improvement located within a historic district. "Exterior architectural feature" means the architectural elements embodying style, design, general arr-angement, and components of all the outer surfaces of an improvement, including, but not limited to, the kind, color, and texture of the building materials and the type and style of all windows, doors, lights, signs, and other fixtures appurtenant to such improvement. "Historical resource" means buildings, structures, signs, features, sites, places, areas, or other improvements of scientific, aesthetic, educational, cultural, archaeological, architectural, or historical value to citizens of the city of Arroyo Grande and designated as such by the city council pursuant to the provisions of this article. "Historic district" means any area which has a special character, historical interest, aesthetic value, or archaeological significance or which represents one or more architectural periods or styles typi,cal of the history of the city, and which constitutes a distinct section of the city that has been designated a historic district pursuant to this code. "Improvement" for the purposes of historic resources means any building, structure, place, fence, gate, landscaping, tree, wall, parking facility, work of art, or other object constituting a physical feature of real property or any part of such feature. "Ordinary maintenance and repair" means any work, for which a building permit is not required by law, where the purpose and effect of such work is to correct any deterioration of or damage to the exterior feature of any structure or property or any part thereof and to restore the same, as nearly as may be practicable, to its condition prior to the occurrence of such deterioration or damage. "Outstanding historical resource" means buildings, structures, signs, features, sites, places, areas, or other improvements of the highest scientific, aesthetic, educational, cultural, archaeological, architectural, or historical value to the citizens of the city of Arroyo Grande and designated as such by the city council pursuant to the provisions of this code. An outstanding historical resource is deemed to be so important to the historical and architectural fabric of the city that its destruction would be a major loss to the city. Subsection 9 is added to Section 16:16.060.8. 9. Alteration or Demolition of a Designated Historic Resource. Add Section 16.16.211 Minor Use Permit - Historic Resource or District Designation A. Purpose and Intent The purpose of this section is to promote the general welfare by providing for the identification, protection, enhancement, perpetuation, and use of improvements, buildings, structures, signs, features, sites" places, and areas within the city that reflect special elements of the city's historical, architectural, archaeological, cultural, or aesthetic heritage for the following reasons: 1. To encourage public knowledge, understanding, appreciation, and use of the city's past; 2. To foster civic pride in the beauty and character of the city and in the accomplishments of its past; 3. To enhance the visual character of the city by encouraging new design and construction that complement the city's historical buildings; 4. To increase the economic benefits of historic preservation to the city and its inhabitants; 5. To protect property values within the city; 6. To identify as early as possible and resolve conflicts between the preservation of historical resources/districts and alternative land uses; and 7. To conserve valuable material and energy resources by ongoing use and maintenance of the existing built environment. B. Authority- Historical resource/district designation criteria The Historic Resources Committee (HRC) is authorized to make recommendations to the architectural review committee, community development director, planning commission or city council for minor use permit applications designating a structure, site, or other improvement a historical resource or an outstanding historical resource and an area within the city may be designated a historic district if it meets any of the following criteria: 1. It exemplifies or reflects valued elements of the city's cultural, social, economic, political, aesthetic, engineering, archaeological, or architectural history; or 2. It is identified with persons or events important in local, state, or national history; or 3. It reflects significant geographical patterns, including those associated with different eras of settlement and growth, particular transportation modes, or distinctive examples of park or community planning. C. Applicability 1. An historical resource review shall be conducted according to Section 16.16.211.0. 2. Property that has been designated a historical resource, an outstanding historical resource or an improvement that is located within a historic district shall continue to be subject to all zoning ordinances that would apply to such property if it were not so designated or located. By designating historical resources, outstanding historical resources, and historic districts, the city council shall not be construed to be repealing or waiving any other portion of the zoning ordinance of the city as it applies to the designated property. D. Designation Process Historical resources, outstanding historicaL resources, and historic districts shall be designated by the planning commission and city council upon the recommendation of the HRC and ARC in the following manner: 1. Initiation of Designation. Designation of a historical resource, an outstanding historical resource, or a historic district may be initiated by (1) the owner of record of the property or structure, (2) the HRC, (3) the ARC, (4) the Planning Commission, (5) the City Council, (6) by any resident of the City of Arroyo Grande, or (6) any organization with a recognized interest in historical preservation. Applications for designation originating from outside the committee must be accompanied by such historical and architectural information as is required by the committee to make an informed recommendation concerning the application, together with the fee set by the city council. 2. List. The HRC shall publish and transmit to all interested parties a list of proposed designations, and shall disseminate relevant public information concerning the list or any site, structure, or area contained therein. 3. Public Hearing. The HRC may, and the ARC shall make recommendations on a proposed designation of a historical resource to. the community development director. A public hearing by the planning commission, pursuant to Section 16.12.160 of this title, shall be scheduled in the event that the property owner does not consent to the application for a proposed designation. 4. Work Moratorium. While the planning commission's public hearing or the city council's decision on appeal is pending, the City requires development or building work moratorium on the site proposed for designation. E. Development and building permits 1. No exterior alterations shall be made by any person to a historical resource, an outstanding historical resource, or improvement located in a historic district without a development and building permit approved by the community development director upon a recommendation by the ARC, or on appeal by the planning commission or city council, nor shall the building official or planning commission grant any permit to carry out such work on a historical resource, an outstanding historical resource, or improvement located in a historic district without the prior issuance of a Minor Use Permit - Plot Plan Review pursuant to Section 16.16.060 of this Title. Decisions. by the city pursuant to this section are "discretionary" and relate to "discretionary projects" as these terms are used in the California Environmental Quality Act (CEQA). Any permit, including a building permit, or other City approval that would authorize any change in the exterior of any proposed or designated landmark, or the exterior of any structure, building or significant feature within a designated or proposed preservation district, is a discretionary permit or approval within the meaning of CEQjI. 2. Ordinary maintenance and repair. Nothing in this article shall be construed to prevent the ordinary maintenance and repair of any exterior feature of any structure or property. covered by this section, so long as such maintenance and repair does not involve a change in exterior design, material, or appearance. 3. Unsafe or dangerous conditions. None of the provisions of this section shall prevent any measures of construction, alteration, or demolition necessary to correct the unsafe or dangerous conditions of any structure, other feature, or part thereof, where such condition has been declared unsafe or dangerous by the building official or the fire chief, and where the proposed measures have been declared necessary by such official, to correct the said condition; provided, however, that only such work as is absolutely necessary to correct the unsafe or dangerous condition and as is done with due regard for preservation of the appearance of the structure involved may be performed pursuant to this section. In the event any structure or other feature shall be damaged by fire, or other calamity, or by act of God, to such an extent that in the opinion of the aforesaid officials it cannot be reasonably repaired and restored, it may be removed in conformity with normal permit procedures and applicable laws. If the condition of an unsafe or dangerous historical resource, outstanding historical resource, or improvement located in a historic district so permits, the official in charge of overseeing correction of such a condition shall consult with the HRC and Community Development Director before carrying out corrective measures. 4. Duty to keep in good repair. The owner, lessees and any other person in actual charge or possession of a historical resource, an outstanding historical resource, or of any improvement located within a historic district shall take steps necessary to prevent: a. The substantial deterioration or decay of any exterior portion of such a resource or improvement; b. The substantial deterioration or decay of any interior portions thereof the maintenance of which is necessary to preserve any exterior portion. . As used in this section, the term "substantial deterioration or decay" shall refer to those conditions of the structure or improvement which threaten the structural or historical integrity of the resource or improvement. 5. Showing of extreme hardship. If the applicant presents evidence clearly demonstrating to the satisfaction of the historical resources committee and community development director that failure to approve the application for a development or building permit will cause an immediate extreme hardship because of conditions peculiar to the particular structure or other feature involved, the planning commission may approve or conditionally approve such application even though it does not meet the standards set forth in subsection 16.16.211.B. In determining whether extreme hardship exists, the committee shall consider evidence which demonstrates: a. Denial of the application will diminish the value of the subject property so as to leave substantially no value; b. Sale or rental of the property is impractical, when compared to the cost of holding such property for uses permitted in the zoning district; c. Utilization of the property for lawful purposes is prohibited or impractical; d. Rental at a reasonable rate of return is not feasible. F. Additional Findings for the Alteration or Demolition a Designated Historic Resource In evaluating applications for an alteration or demolition of a designated historical resource, the community development director with a recommendation by the ARC, or the planning commission or the city council upon appeal shall consider the architectural style, design, arrangement, texture, materials, color, and other factors. The community development director, or the planning commission or city council upon appeal shall approve the issuance of a development permit or demolition permit for any proposed work if and only if it finds: a. With regard to a historical resource or outstanding historical resource, the proposed work will neither adversely affect the exterior architectural features of the resource nor adversely affect the character or historical, architectural, or aesthetic interest or value of such resource and its site. b. With regard to any property located within a historic district, the proposed work conforms to the standards for the district adopted by the committee, and does not adversely affect the character of the district. c. The work is consistent with the provisions in Section 16.16.211.E. d. Demolitions. When application is made for a development or building permit to demolish a historical resource or an outstanding historical resource, the architectural review committee, community development director or planning commission disapproval of the application shall mean that no development or building permit shall be issued or demolition allowed until review and approval by the City is complete. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ESTABLISHING APPOINTMENT PROCEDURES FOR THE HISTORICAL RESOURCES COMMITTEE (HRC) WHEREAS, the City Council of the City of Arroyo Grande desires to establish. qualifications for members of the Historical Resources Committee (the "Committee") and a fair and equitable procedure for appointing members to the Committee. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande as follows: 1. The Committee shall consist of five (5) members. All members should have knowledge of the history of Arroyo Grande, its buildings, people and events. This knowledge can typically be gained through time spent in the community as a resident or business owner or through active research or membership in organizations related to the study or preservation of local history. Members do not need to currently reside within the City of Arroyo Grande. Members can serve on other advisory bodies of the City, although preference should be made for volunteers without other advisory body commitments. Knowledge and technical skills related to historic preservation, CEQA and architecture are desirable but are not specifically required. 2. The procedure for appointing members to the Committee shall be as follows: The Mayor and each Council Member shall appoint one (1) representative to the Committee, subject to approval by a majority of the Council. 3. Members of the Committee shall serve for a term ending the January 31st following the expiration of the term of the respective appointing Mayor or Council Member, as applicable. Members of the Committee may be removed prior to expiration of their term by a majority vote of the Council. On motion by Council Member , seconded by Council Member . and on the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this day of ,2005. RESOLUTION NO. PAGE 2 TONY FERRARA, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY MINUTES ATTACHMENT 1 PLANNING COMMISSION JUNE 1, 2004 IV. NON PUBLIC HEARINGS: A. STAFF PROJECT 04-006 - HISTORIC RESOURCES COMMITTEE; APPLICANT - CITY OF ARROYO GRANDE; LOCATION - CITYWIDE. Staff report prepared and presented by Planning Intern, Andrea Koch. Ms. Koch gave an overview of her report on the establishment of a Historic Resources Committee and a Historic Designation Process for the City of Arroyo Grande explaining . that a Historic Resources Committee (HRC) would oversee and conduct the initial expansion and update of the Historic Resource Survey (HRS) as well as any additional broad-sweeping survey efforts. She described how the designation process could work and how the ARC and Planning Commission would be involved. In conclusion, Ms. Koch stated that historic Jesource nomination should first be made to the ARC and the Community Development Department and then to the Planning Commission. Commission Comments: Keen: . Concern that the City would be making a decision for a homeowner who may not want to be on a register. . He disagreed with trying to enforce views on someone not inside City limits. . Where the document states "encourage" it seems more like a mandate, and property owners should have some rights. . Criteria should be set up before a committee is appointed. . Someone may want to abide by requirements but not be on the list; they should have the option to not be on the list. . Alternative 3: Concern that someone disagreeing with historic preservation mandates for their property would have to pay appeal fees; what would the appeal fees be? Ms. Koch suggested that if someone does not want to be listed they could voluntarily comply with recommendations. Mr. Strong said he would like to see a committee independent of the ARC, composed of historians and Architects; the review could then be done by ARC, CDD and Planning Commission. If a property is listed without the owner's consent it would take City Council action to designate it historic; we want to follow the intent of CEQA and City Council's interest; being on the list should be considered benefiCial. . Arnold: . He was not comfortable with Alternative 3 and not clear on why a homeowner would want to be on a list unless there was some solid benefit. . . There could be some substantial cost involved for the City if it undertakes an historic preservation ordinance. MINUTES PAGE 13 PLANNING COMMISSION JUNE 1, 2004 Mr. Strong said it could be quite expensive to do a full-fledged evaluation on an individual. historic property, but if we have the right personnel on the Committee we could end up with predominantly citizen nominations with a definitive list. Commissioner Keen stated historic structures like the Swinging Bridge could be nominated. Commissioner Arnold suggested that there be a hurdle set, that the documentation needs to meet, to avoid unlimited cost and extensive research that no one would want to undertake. Mr. Strong explained that the process for reviewing nominations of the historic resources to the local register was based on the Town of Danville's ordinance (as explained in the staff report). Fowler: . Does the Arroyo Grande Historical Society have any recommendations for nominations? Mr. Strong replied that they do have a lot of human resources who could identify structures that are historic . Should the list be compiled by using State criteria and not local criteria to make listing of historic structures more restrictive? . The HRC should not be a formal review body at first, but maybe start out as an advisory board. . Owner consent is an important issue. Brown: . Only considering what the State deems historically significant instead of establishing local criteria for designation misses the point of why we started this process. . He did not think ARC/HRC should be responsible for making CEQA decisions, but they should be made by Planning Commission or City Council to keep a historical perspective . He did not think the ordinance should be strictly voluntary, but based on specific criteria with objectives that can be tested to take out the emotional response. . He agreed with Commissioner Arnold that if a property is listed the owner should be given some benefit (financial) because the level of responsibility that would ". be put on the owner would be arduous and should be rewarded. In reply to a question from Chair Guthrie, staff replied that in other cities if City Council makes the determination it is mandatory, but they do provide benefits: Guthrie: . Thinks it has to be mandatory to work. . Once a property has been nominated by HRC, ARC or PC could make design decisions based on this. , MINUTES PAGE 14 PLANNING COMMISSION JUNE 1, 2004 . He sees the HRC making the nominations and thereafter being out of the process; HRC could have additional nominations annually (sees them as a mini CEQA review). . Under mandatory issues he would like to see other City examples of mandatory versus not mandatory. . Any advantage we can give to anown,er of an historic building should be given, and any property owner could appeal their decision and ultimately City Council would make the decision. The Commission thanked Ms. Koch for her work and stated she did a good job. V. DISCUSSION ITEMS: 1. Appeal Case No. 04-001; Applicant - S& S Homes; Re sentative - John Mack; Location - Jasmine Place. Mr. Strong said this is not a situation where they would rmally recommend a waiver, but he would like to allow the applicant to make a prese ation. John Mack,. representative for S & S Homes, stat it was not until "Plan Check" for' offsite improvements (after going through all th Committees for approval) that the interpretation of the undergrounding came to Ii ; he believed that the Subdivision Map Act is the project boundaries; they appealed tatrs decision to require utilities for 350 feet plus beyond their project to the corner fSpruce and Ash Streets; they did not see how staff is getting their interpretation fro Conditions of Approval and he discussed the Condition of Approval language, Devel ment Code language and subdivision map act language (to take. improvement beyond project boundaries should require reimbursement to the developer for uch costs); it is a multi utility line and could cost in excess of $250,000. Mr. Devens stated that staff scussions had taken place prior to plan check informing the applicant of the require ent to underground to corner of Spruce arid Ash Streets; that the developer was in nding to place a new pole set just outside their project, but on neighboring property; hat he did not recall seeing any service drops coming from the pole C!nd that these Ii do directly serve his project; that PG&E could install conduit adjacent to gutter, u er pavement to save cost; that Stonecrest and the Santa Lucia Project had been re uired to go beyond their property boundaries. Mr. Strong state he was sympathetic to both sides; that he was disturbed with this as he had sat thr ugh the Dotson subdivision pole appeal; that he would like to see a written explal"}8tion for the cost without the placement of a new pole; that he would like to see a cozpromise and that reimbursement could be considered. Mr. Strong gave an explanation of "unreasonable" to the Commis~ion as included in the Conditio~s of Approval. MINUTES ATTACHMENT 2 PLANNING COMMMISSION JUNE 21,2005 PAGE 8 D. (Continued from the meeting of June 7, 2005) DEVELOPMENT CODE AMENDMENT CASE NO. 05-003, HISTORIC RESOURCES ORDINANCE FOR THE CITY OF ARROYO GRANDE; APPLICANT - CITY OF ARROYO GRANDE; LQCATION - CITYWIDE. Assistant Planner, Jim Bergman presented this project to create a Historic Resource Committee (HRC) and amend the Arroyo Grande Municipal Code, including provisions for the establishment of criteria for local historic designation and creation of a review process for listing historic resources on a local register. He gave a brief history of the process in getting to this point. He described the committee setup, review process and designation process. Code updates would be necessary to authorize the new committee, their duties, the historic designation and definitions of what that would entail. Staff questions: . Has this work already pretty much been done and is it basically being brought forward just for review and adoption now? That's correct, the DCA must be presented at a public hearing prior, to Council action, so this meeting meets that requirement. . Did staff create the wording or borrow it from other:communities? Two Planning Interns have done research on other communities' ordinances; and staff planners . have aided in reviewing and editing the appropriate process and structure for the City of Arroyo Grande. . Did the other HRC's work well in other towns to their economic and aesthetic benefit? Yes, and some had equally unique features. . What amount would taxpayers get in relief if their property is designated according to the Mills Act? Mr. Strong met with the County Assessor to try to obtain estimates, but doesn't have any numbers at this time. San Luis Obispo City has the Mills Act, but Arroyo Grande doesn't - yet. Mills Act property relief is a good incentive for designation. Another incentive is the allowance of the alternative building code, which allows the Building Official more discretion. Other relatively simple incentives could include recognition, a plaque, public/y available information, and neighborhood prestige. The Committee, once formed, may offer other ideas how to expand an incentive program. . The top of page 8 of the staff report states "Non-designated properties may still be important 'contributing' elements to the 'setting" of historic resources ..." Is there anything in the resolution or ordinance that, if passed tonight, would keep these type of old structures which are part of the setting from being included in the list? No, there's plenty of community input in the nomination process. . Where does the process go after tonight? If City Council approves it, they will be responsible for appointing members to the HRC, encouraging additional input to the HRC designation process, and nominations will begin. It's a rather substantial process, but has been more than a year in evolution. While the HRC members wouldn't have the full authority of a commission, they would make MINUTES PLANNING COMMMISSION JUNE 21,2005 PAGE 9 initial recommendations to ARC, ARC would make recommendations to Planning Commission and Commissioners would make the final decisions, which could be appealed up to City Council. . On page 5, should "economic hardship" be more clearly defined? Typically, these would be considered on a case-by-case' basis, with significant reasons necessary to show real hardship. Most communities with historic preservation provisions have this to allow some consideration of feasibility. It isn't intended as a general escape clause, and they would be determined by Councileventually, but hopefully with evidence. . On page 6, how much notice time is given to the property owner - 30 or 60 days? There's not a stated minimum time, but there should be at least 60 days. Once a property is nominated and studied, the owner is advised. If he wants to contest the nomination, it could be any time in the process up to the actual designation hearing where public notice is sent to the owner and surrounding properties. . If there's a property on the list and something happens to it - if it gets burned, becomes trashy, etc. - can it be removed from the list? Yes. . On page 8, what is a "reuse conversion"? An example would be the change from residential use to office, like. several dentists have done in the Village. . On page 2 of the Ordinance, under section 4, could there be a mailing so more people know than just those who read the newspaper? The Design 2.4'overlay alone could generate over 1000 notices, so economically, it's a value judgment if you feel there should be a general or focused mailing. Each ofthe designated properties would be noticed at the time of-the public hearings. 0 Maybe a press release could be sent out. . On Exhibit A, 2.21.050 (Nonattendance), the way it's worded, HRC members might only miss one meeting (25% of four meetings) and lose their seat. Normally leeway is given in this area, and it refers more to not giving notice of inability to attend, etc. . On Exhibit A, 16.16.211, D (Designation process), it looks like a different process than the list on page 6 of the staff report. Mr. Strong replied the concern here is that you can create a substantial process and effort by staff and the property .owner in trying to respond to any nomination, and people could nominate the neighbors they don't like for spite, so this protects legitimate interests in historic preservation. . If both the owner and ARC want a property to be designated, could it be a consent agenda item, instead of a public hearing? Yes, it is intended to use the MUP process with appropriate noticing. . Why did Commissioner Keen comment in prior minutes that he "disagreed with trying to enforce views on someone not inside City limits"? There are jurisdictions outside City limits, but within the City's sphere of influence that people may wish to designate as historically significant, for example: Halcyon Temple. Council could consider such locations, but their ability to enforce such designation may be. beyond the City's jurisdiction. The City could make MINUTES PLANNING COMMMISSION JUNE 21, 2005 PAGE 10 recommendations to the Board of Supervisors to protect such buildings from proposals to alter or diminish them. . Chair Brown requested the ordinance be spell checked in the word processor. . Commissioner Parker said she would turn in written comments on grammar. Chair Brown opened the public hearing to public comment. Gary Scherquist, 228 Short Street, read a letter in support of the HRC Ordinance and attached Resolutions (on file in the Community Development Department). He suggested that to show good faith, the HRC start with publicly owned buildings first, and then private (like the Church in the Village and the wall at 137 Whiteley). Planning Commissioners were interested in having permit applications trigger evaluation of historical qualities (instead of starting by creating a large list of buildings). In response to questions about if the ordinance could be changed to that effect if the resolution and ordinance were adopted tonight, Mr. Strong replied yes; that would be possible. Chair Brown closed the public hearing to public comment. Commissioner comments: Parker: . She requested that Gary Scherquist's letter be forwardedto Council. . If fifty or more buildings were nominated at the same time, especially with other major projects, she couldn't see them being processed in a timely fashion. It might be good to start the list by letting the building and demo permit process trigger evaluation of historical qualities. Then, two or three years later, they could research other properties not yet on the list. Fellows: . He expressed thanks to Mr. Strong and staff for addressing this importantissue. . He's ready to support the ordinance tonight to have something in place, and perhaps change it later to Mr. Scherquist's suggestion about the permit trigger. . .A Historic Designation will enhance properties. It's scary at first, but if the public is informed, it's a real positive. He relayed a story of hearing state officials trying to educate city officials on the fact that the Historic Code was more lenient and therefore they could give more latitude when an historic building was being fixed up; he was looking forward to additional information on the benefits of the Mills Act. . He complimented Mr. Scherquist on the remodel of his Village home. Brown . He agrees with a lot of what Mr. Scherquist said and with the streamlining process. His only concern was a discussion with Robert Chattel, who spoke to staff and Commissioners at length about the benefits of having a list established prior to permit request, because it provided greater protection if done ahead of. MINUTES PLANNING COMMMISSION JUNE 21, 2005 PAGE 11 time. He wouldn't want to streamline things if it lessened their effectiveness to preserve history. 0 Chuck Fellows recalled that discussion as well, remembering that it would . have been helpful to have the Loomis Barn on a list when it was being permitted. There is a survey from 1991 that they could start with. 0 Commissioner Brown noted the angst and heartache of private parties to protect that barn. He would want to let developers know what they are up against ahead of time, so they have full awareness of possible limitations and it wouldn't come as a surprise. . He can support the ordinance and resolutions, and also ,requested that Mr. Scherquist's comments go forward to Council (and that he attend Council.) . He noted that the intent is to make it workable for all parties. Commissioner Fellows made a motion, seconded by Commissioner Parker to approve DCA 05- 003 and adopt a resolution as follows: RESOLUTION NO. 05-1967 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ARROYO GRANDE RECOMMENDING THAT THE CITY COUNCIL ADOPT AN ORDINANCE ADDING CHAPTER 2.21 TO TITLE 2.0FTHE ARROYO GRANDE MUNICIPAL CODE ENTITLED ~'HISTORICAL ,RESOURCES COMMITTEE", AND AMENDING CHAPTER 16.04 "DEFINITIONS" AND ADDING SECTION 16.16.211 TO TITLE 16 OF THE ARROYO GRANDE . MUNICIPAL CODE ENTITLED "MINOR USE PERMIT - HISTORICAL RESOURCE DETERMINATION" AND ADOPT A RESOLUTION ESTABLISHING APPOINTMENT PROCEDURES FOR THE HISTORICAL RESOURCES COMMITTEE The motion was approved on the following roll call vote: . AYES: Commissioners Fellows, Parker and Chair Brown NOES: None ABSENT: Commissioners Keen and Tait the foregoing Resolution was adopted this 21st day of June 2005. IV. NON-PUBLIC HEARING ITEMS: None. . V. DISCUSSION ITEMS: None. VI. PLANNING COMMISSION ITEMS AND COMMENTS: // ATTACHMENT 3 June 21,2005 .--- --- - - ." . ----. Planning Commission, City of Arroyo Grande, CA Gary Scherquist 228 Short Street I am here tonight to support the proposed lIRC Ordinance and related Resolutions. Before moving to Arroyo Grande.in 2001, I lived in Pasadena, CA where I served for 4 years on the Cultural Heritage Commission (Now called the Historic Preservation Commission) and 7 years on their Design Commission. I presently serve on Arroyo Grande's ARC. I have reviewed the Staff report and the attached proposed resolutions and ordinance and believe them to be well researched. and thought out documents. Ihave one concern, however, which is that the emphasis of the staff report seems to be on nominating buildings toa local register as soon as possible and not on historic preservation. I don't think that this is necessary . and may, in fact, backfire. Sending out notices to 50 or 100 property owners at a time, notifYing them that their property has been nominated for listing on the local historic register will, I believe, cause staff to be overwhelmed with calls from concerned and wary property owners. It took years in Pasadena, after passage of the Cultural Heritage Ordinance, for the community to recognize the value of historic preservation. Evemually, neighborhoods began organizing as historic districts seeking the protection of preservation, but this took a long time to happen. We reviewed buildings 50 years and older when demolition, or alterations were being proposed. Review was mostly trigged by application for a Building or Demolition Permit. It was not clear to me in reading the ordinance how reviews will be triggered,. excepting by nomination. / Reviews should be public hearings where first the building is reviewed for its eligibility. Decisions must be based on the criteria established by our Ordinance. Eligibility, not actually being on the historic register, should be the criteria for further review. If the building is found to be eligible the proposed demolition or alteration can then be then reviewed for appropriateness. The Secretary of the Interiors Standards for Historic Rehabilitation should be used as the guide. In conclusion, I support this Ordinance and believe that it will be good for the City. Thank you for the opportunity to offer my suggestions. . . . . .. / - ! 10.a. MEMORANDUM I I , TO: CITY COUNCIL FROM: DON SPAGNOLO, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER /!;:f , SUBJECT: CONSIDERATION OF WATER WHEELING AGREEMENT WITH THE , OCEANO COMMUNITY SERVICES DISTRICT FOR THE CHRISTIE FAMILY SUBDIVISION DATE: AUGUST 9, 2005 RECOMMENDATION: It is recommended the Council: 1. approve a Water Wheeling Agreement with the Oceano Community Services District ("OCSD") for the Christie Family Subdivision and authorize the Mayor to execute the agreement in a form approved by the City Attorney; and 2. approve the proposed modifications to the City's Policy regarding water wheeling agreements for future requests to enter into water wheeling agreements. FUNDING: The wheeling charge to utilize the City's distribution facilities will be $1.05 per 100 cubic feet of water delivered. Based on an estimated annual delivery of 2 acre feet of water, it is estimated that $1 ,300 per year will be collected from wheeling charges and placed in the Water Fund. DISCUSSION: The original Christie Family Subdivision project considered by the County proposed using an existing off-site water well that was shared by the two existing residences on the site, as well as three other properties in the area. The plan was for a State Small Water company to be created by the applicant to serve the subdivision. The subsequent Negative Declaration prepared and approved by the County was based on this being the situation. The existing water well can apparently provide an adequate and healthful water supply to serve the additional two units that would be built as part of the subdivision. At issue is the replacement of an existing 1 O,OOO-gallon water tank (in need of repair or replacement) that would not meet current fire flow standards. The California Department of Forestry (CDF) is requiring a 90,OOO-gallon tank to serve the subdivision. The existing 1 O,OOO-gallon tank is located on another property owner's parcel. This property owner has refused to allow the construction of a larger replacement tank on that site. CITY COUNCIL CONSIDERATION OF WATER WHEELING AGREEMENT WITH THE OCEANO COMMUNITY SERVICES DISTRICT FOR THE CHRISTIE FAMILY SUBDIVISION AUGUST 9, 2005 PAGE 2 When an agreement could not be negotiated with the three other property owners using the well, the Christies requested that Oceano Community Services District and the City of Arroyo Grande wheel water to their site using the City's pipeline infrastructure. LAFCO determined that the initial Study/Negative Declaration was complete and adequate and approved the outside user agreement for water service between OCSD and the City of Arroyo Grande on the condition that both agencies also approve the agreement. At the City Council meeting on July 12, 2005, the Council requested staff investigate providing only fire flow to the Christie property. The nearest City fire hydrant that provides sufficient water pressure for fire flows is located Stagecoach Road, which is 2,000 feet from the Christie property. Fire crews would have to fill the trucks at this site and bring it to the fire location. If a fire hydrant were constructed on site, a minimum of 1 ,000 gallons per minute would be required at a residual pressure of 20 pounds per square inch. This, in combination with the domestic flow of 5 gallons per minute, makes up the 1 - 2 acre feet per year being requested. If a hydrant was required, it would be located on the Christie property and would consist of a connection to the City's eight inch main in Stagecoach Road, a double detector check valve to prevent water flowing back into the main and the fire hydrant assembly. The estimated cost of $19,000 forthis work includes contingency factors, which would be charged to the applicant. Council's approval of the fire hydrant will not address the Christie's need for domestic service. With the inability to locate the large storage tank on a nearby parcel, they are unable to form a small State water system. Without the larger storage tank, they cannot establish the water shares to serve the additional parcels from the subdivision of their property. At the July 12, 2005 meeting, Council also considered modifying the policy regarding requests to provide water services to properties outside the City. The modifications are as follows: . The property to be serviced has existing structures. . The request for service is not for the purpose of enabling new development. CITY COUNCIL CONSIDERATION OF WATER WHEELING AGREEMENT WITH THE OCEANO COMMUNITY SERVICES DISTRICT FOR THE CHRISTIE FAMILY SUBDIVISION AUGUST 9, 2005 PAGE 3 ALTERNATIVES: The following alternatives are provided for the Council's consideration: . Approve Water Wheeling Agreement and modifications to the City's policy regarding water wheeling agreements for future requests; . Approve Water Wheeling Agreement and do not approve modification to policy; . Do not approve water Wheeling Agreement and approve modification to policy; . Approve Water Wheeling Agreement and provide additional modifications to policy; . Approve Water Wheeling Agreement, but eliminate future agreements; or . Provide staff direction. Attachment: Council Report dated July 12, 2005 i ATTACHMENT 1 ,-" MEMORANDUM TO: CITY COUNCIL FROM: DON SPAGNOLO, DIRECTOR OF PUBLIC WORKS/CITY ENGINEE~ SUBJECT: CONSIDERATION OF APPROVAL OF A WATER WHEELING AGREEMENT WITH THE OCEANO COMMUNITY SERVICES DISTRICT FOR THE CHRISTIE FAMILY SUBDIVISION DATE: JULY 12, 2005 RECOMMENDATION: It is recommended the Council: 1. approve the attached Water Wheeling Agreement with the Oceano Community Services District ("OCSD") for the Christie Family Subdivision; and, 2. approve the proposed modifications to the City's Policy regarding water wheeling . agreements for future requests to enter into water wheeling agreements. FUNDING: The wheeling charge to utilize the City's distribution facilities will be $1.05 per 100 cubic feet of water delivered. Based on an estimated annual delivery of2 acre feet of water, it is estimated that $1 ,300 per year will be collected from wheeling charges and placed in the Water Fund. DISCUSSION: On June 21,2004 the City received a letter from Robert and Cynde Christie inquiring about a possible water wheeling arrangement. The proposed Christie Family Subdivision would divide 10.19 acres into four parcels, which are located in the County. There are two units presently occupying the site. These two units will be located on two of the four new parcels. The Oceano Community Services District (OCSD) is prepared to serve water to the property, but must wheel the water through City pipelines to reach the Christie property. The attached Agreement. between the City and the OCSD Board of Directors sets forth the . responsibilities and obligations of each party as to the delivery of water to the Christie Family Subdivision. Since the Christie Family Subdivision is outside the service area of OCSD, this issue and the attached agreement will be presented to LAFCO on July 21, 2005 for approval. . CITY COUNCIL CONSIDERATION OF APPROVAL OF A WATER WHEELING AGREEMENT WITH THE OCEANO COMMUNITY SERVICES DISTRICT FOR THE CHRISTIE FAMILY SUBDIVISION JULY 12, 2005 PAGE 2 The Christie Family Subdivision project consists of four 2.57acre Residential Suburban parcels. The parcel map was approved by the County in 2001, anticipating use of an existing off-site water well that also serves three other property owners in the area. Average slope of terrain in the area ranges from 16 to 30%, and this constraint under the County Land Use Element requires lot size of two acres or greater. Although the well could apparently provide adequate quality and quantity of water for the potential of five to fourteen residential connections, the existing 10,000 gallon water storage tank would not meet required fire flow standards unless replaced by a 90,000 gallon tank. The off-site owner of the existing tank site has refused to allow the replacement of a larger tank and alternative sites have environmental constraints. The City is already wheeling OCSD water through the City's distribution system to enable LAFCO approved Outside Service Agreement water to the unincorporated Canyon Crest subdivision, located adjacent to the City limits on Stagecoach Road. Both LAFCO and County Planning Department staff note a difference with this proposal in that the Canyon '! . . Crest subdivision was an already developed subdivision, whereas the Christie Family parcel map is attempting to meet the County conditions of approval by obtaining public water supply rather than a small private system unlike other adjoining unsubdivided properties, which may appear to be similar in situation. Before LAFCO can approve extension of service to users outside City on OCSD jurisdictional boundaries and outside its sphere of influence, it must find "an existing or impending threat to th.e public health or safety of the residents of the affected territory, documented by the entity. applying for the contract." In this instance, the City's Fire Chief has tentatively submitted a letter supporting the Christie Family subdivision connection to the City's existing water system to improve fire flow to the area, and both CDF and County Environmental Health also support the City's water wheeling as superior to an alternative private system meeting County specifications. The Fire Chiefs letter indicates that the High Fire Severity area and urban/wildland interface constitute a threat to the health and safety of the area residents. It should be noted, however, that the same statement could apply to a broad Arroyo Grande Fringe.Residential Suburban and Residential Rural area. At a minimum, there are several other unsubdivided parcels to the northeast on Stagecoach Road that also adjoin the City's water storage and distribution system, as well as the Christie and Canyon Crest subdivisions. - CITY COUNCIL CONSIDERATION OF APPROVAL OF A WATER WHEELING AGREEMENT WITH THE OCEANO COMMUNITY SERVICES DISTRICT FOR THE CHRISTIE FAMILY SUBDIVISION JULY 12, 2005 PAGE 3 On October 8, 2002, the City Council approved a policy regarding requests to provide water service to properties outside the City. For residential development outside the City's sphere of infiuence no extension for water service will be made as recommended by the 2001 General Plan. Such developments may request to use the City's infrastructure to transport water. The Christie Family Subdivision meets the conditions established in the policy. Because the other adjoining properties, which may appear or be similar in situation to the Christie Family Subdivision, may also seek similar services provided by this proposed outside service agreement, which may ultimately be inconsistent with the City's land use policies, staff is recommending that the Council consider amending the policy to include the following for residential developments outside the City's sphere of influence: \ . The property to be serviced has existing structures. . The request for service is not for the purpose of enabling new development. ALTERNATIVES: The following alternatives are provided for the Council's consideration: . Approve Water Wheeling Agreement and modifications to the City's policy regarding water wheeling agreements for future requests; . Approve Water Wheeling Agreement and do not approve modification to policy; .. Do not approve water Wheeling Agreement and approve modification to policy; . Approve Water Wheeling Agreement and provide additional modifications to policy; . Approve Water Wheeling Agreement, but eliminate future agreements; or . Provide staff direction. Attachments: 1. Water Wheeling Agre~ment 2. Policy 3. Letter Attachment 1 WATER WHEELING AGREEMENT THIS WATER WHEELING AGREEMENT (hereinafter referred to as the "Agreement") is made and entered into as of June 8, 2005, by and between the City of Arroyo Grande, a municipal corporation (hereinafter referred to as the "City") and Oceano Community Services District, a community services district organized and existing pursuant to California state (hereinafter referred to as the "District"), and hereinafter occasionally referred to collectively as "the Parties" or individually as ~. "Party" with reference to the following facts: A. Christie Family Subdivision Homeowner's Association, an as yet l/Ilformed California non-profit mutual benefit corporation (hereinafter referred to as "Association") consists of members who are limited to owners of that certain real property in the County of San Luis Obispo, State of California, as described below: Lots 1 through 4 Tentative Map Co 00-0152, and bearing assessor's parcel number 047-127-001 in the County of San Luis Obispo, State of Cali fomi a (hereinafter referred to as the "Property"). B. The Property consists of four (4) parcels which are single family residential lots. C. Association has a water system that is experiencing problems with inadequate water supply for fire suppression, and which problems Association and the District believe constitute an existing or impending threat to the public heath or safety of the Association members within the meaning of Government Code Section 56133 (c), and Association desires to acquire a beller water source from the District with the City's cooperation. D. It is not feasible at this time for the City to extend water service to the Property directly from the City's existing system. ,~-l: E. The District has a water supply surplus and is prepared to sell water to Association, but does not have the means to connect directly to the Association water system. F. The City has agreed to provide the use of a delivery system for the water the District desires to sell to Association, all subject to compliance with Government Code Section 56133, the contracts between the San Luis Obispo County Flood Control District and Water Conservation District (hereinafter referred to as the "SLO FCD"), the District, and the City for a water supply (hereinafter collectively referred to as the "Lopez Agreements"), and other applicable law. I NOW THEREFORE, in consideration of the mutual promises, covenants and conditions contained herein, the parties hereto agree as follows: 1. TRUTH OF RECITALS. All of the matters specified in Recitals A. through F. above are true and correct as of the date of this Agreement to the best knowledge of the Parties, however the City has no knowledge and makes no representations as to the accuracy of the status of Association's wells, water quality, or supply, or the status of surplus of the District's water. 2. CITY DELIVERY OF DISTRICT WATER TO ASSOCIATION. From and after the date the last contingency set forth in Section 5 hereof has been satisfied, the City shall accept from the District, delivery of water to which the District is entitled under the Lopez Agreements hereinafter referred to as the "Wheeled Water") and shall wheel the same to Association. In connection therewith: a. The quantity of the Wheeled Water shall be limited to that quantity supplied by District to City. It shall be the responsibility of District to confirm the legal ability of water supplied under the Lopez Agreements to be wheeled and delivered in the manner set forth in this Agreement. b. Delivery of the Wheeled Water to the City by the District ,shall be effected through an instruction by t~e District to the SLO FCD to deliver a portion of the District's water delivery entitlement under the Lopez Agreement to the City's facilities which receive the City's water delivery entitlement under the Lopez Agreement. c. The Wheeled Water delivered to the City by the District shall be potable water not less in quality as water otherwise delivered pursuant to the Lopez Agreement and subject to all the Lopez Agreement's terms and conditions. City makes no warranties or guaranties as to the quality of the water or its suitability for use by District, Association, or any other party. d. The Wheeled Water shall be delivered to Association by the City through a connection between the City's and Association's water systems at the location and pursuant to the specifications set forth in Exhibit "A" attached hereto and incorporated herein (the "Point of Delivery"). e. Such water wheeling shall be consistent with the delivery schedule contained in the Lopez Agreements, and based on a delivery schedule further set forth in Exhibit "A" attached hereto and incorporated herein. The parties acknowledge that Association's consumption of water shall vary from day to day but that the water delivery to the City under the Lopez Agreements only may be adjusted semi- annually as set forth in the Lopez Agreements. The parties agree that they periodically shall meet and confer to review the data for both the water deliveries to the City and Association's water consumption, and shall instruct the 5LO FCD to adjust the water deliveries from the District to the City as necessary to assure, on average, they are in balance with Association's consumption and consistent with City's available capacity. City shall not be responsible for any shortages 2 resulting from any of the following: reduction or fluctuation in supply of water under the Lopez Agreements, drought, weather or other water shortage conditions beyond the control of Citv, emergencies, catastrophic events, acts of nature. vandalism or terrorism. impediments to ground water recharge, well failures, mechanical failures and system servicing requirements of City, the SLO FCD and other participants in the regional water supply system, or any other events beyond the control of City. 3. PAYMENT FOR 'YHEELING SERVICES. The City sh~ll charge the District an all inclusive wheeling fee for its services as set forth on the attached Exhibit "A". To facilitate the same, the City shall install and maintain a water meter at the connection location described in Exhibit" A", the cost for which shall be paid in accordance with Section 6. b. of this Agreement. Monthly, the City shall read the meter, determine the volume of water delivered by the City through the meter to Association, calculate the wheeling fees assessed for such water by multiplying the meter reading by the amount of the fee, and transmit an invoice to the District for such fee. The District shall pay all invoices submitted by City for water delivered under this Agreement within thirty (30) days after receipt. 4. TERM. This Agreement shall commence on the date the contingencies set forth in Section 5 hereof have been satisfied. District shall provide written notification to City that all contingencies have been satisfied not less than 30 days prior to the first date that City shall be required to wheel water pursuant to this Agreement. This Agreement shall continue for as long as the City provides services to its in-city customers or until the occurrence of one of the following events: a. If the contingencies have not been satisfied by December 31, 2005, this Agreement shall automatically expire, with no further obligation on the part of City . In the event of expiration pursuant to. this Section 4.a., District shall not be relieved of its obligations under Section 6.a. of this Agreement. b. District notifies City that Association is in material breach of that certain Service Agreement to Provide Water Outside of Service District between Association and the District dated as of June 8, 2005, and directs City to stop wheeling water pursuant to this Agreement. c. The Association service area is annexed to City or some other entity that will. be responsible for providing water service. d. This Agreement is determined to violate the provisions of the Lopez Agreement or any other local, state or federal laws related to wheeling of the water. 5. CONTINGENCIES. This Agreement and all of the terms, provisions, conditions, covenants and obligations imposed on the parties hereto, are contingent upon: all of the following which shall be accomplished by December 31,2005 or this Agreement shall be of no further force and effect unless extended in writing by both the City and District. a. Compliance by the parties with all applicable law, including, but not limited to, the 3 provisions of the California Environmental Quality Act required ro enter into this Agreement; b. Written approval by LAFCO pursuant to Government Code Section 56133 (e) for the District and the City to undertake and perform the obligations set fonh in this Agreement; c. Any approvals by SLO FCD and any other necessary entities related to delivery of the Wheeled Water to which the District is entitled under the Lopez Agreements to the City's water system. These necessary approvals shall be determined by District, and District shall provide written notification and proof to City that all such approvals have been obtained not less than 30 days prior to the first date that City shall be required to wheel water pursuant to this Agreement; d. Determination by the District that this Agreement is not in violation of the Lopez Agreement or any other agreement or provision of law; Upon satisfaction of the contingencies set forth in this Section 5, and written notification of such satisfaction by District to City, this Agreement and all of its terms, provisions, conditions and covenants hereof shall be effective and binding on the parties hereto, without any further action requ ired. 6. PAYMENT OF COSTS. District agrees to reimburse the City for: a. The City's actual administrative costs incurred as a result of the preparation of this Agreement, as estimated in Exhibit A to this Agreement. Administrative costs shall be due even if the contingencies set for in Section 3 are not fulfilled. And, b. Any and all costs incurred by City for any pumps, connections and meters necessary to perform the obligations set forth in this Agreement. 7. INDEMNIFICATION. The District shall indemnify, defend, protect and hold the City and its council members, commissioners, directors, officers, partners, agents, consultants and employees free and harmless from and against any and all claims, causes of action, demands, injuries, damage, liabilities, losses, costs or expenses (including, but not limited to attorneys fees and court costs) to the extent arising out of or resulting from, the terms, provisions, conditions and covenants of this Agreement, including but not limited to, any and all claims, causes of action, demands, injuries, damage, liabilities, losses, costs or expenses (including, but not limited to, attorneys fees and court costs) resulting from discontinuance of water wheeling service pursuant to the terms of this Agreement, except as to those arising out of the active negligence of the City and/or its council members, commissioners, directors, officers, partners, agents, consultants and/or employees. 8. ADDITIONAL INDEMNIFICATION. District shall require that Association take all necessary measures to assure that backflow and other devices are installed, operated and maintained to assure that there is no cross-contamination of water from Association's domestic 4 wells, storage and delivery systems, into City's system. and shall specifically indemnify City pursuant to Section 7 of this Agreement for any such cross-contamination, and shall bear the cost of any remediation required to restore City's system or water supply. 9. NOTICE. Any and all notices or other communications required or permitted by this Agreement or by law to be delivered to, served on, or given to any party to this Agreement by any other party to this Agreement shall be in writing and shall be deemed properly delivered. served, or given when personally delivered to the party to whom it is directed, or in lieu of such personal service, when deposited in the United States mail, first class, postage pre-paid, addressed to: IF TO CITY: City of Arroyo Grande 2 I 4 East Branch Street Arroyo Grande, CA 93420 With a copy to: TimothyJ. Carmel CARMEL & NACCASHA, LLP 1023 Nipomo St #150 San Luis Obispo, CA 93401 Facsimile 805.546.8015 IF TO THE DISTRICT: OCEANO COMMUNITY SERVICES DISTRICT P.O. Box 599 Oceano, CA 93475 Facsimile 805.481.6836 ATT: Francis M. Cooney, General Manager With a copy to: Alexander F. Simas KIRK & SIMAS 2550 Professional Parkway Santa Maria, CA 93455 Facsimile 805.934.1184 Any party to this Agreement may change his address for the purposes of this Section by giving written notice of such change in accordance herewith. .. 10. MODIFICATION. This Agreement may be amended or modified only by an instrument in writing, stating the amendment or modification, executed by the parties hereto and attached to the end of this instrument. 11. GOVERNING LA W/VENUE. This Agreement shall be governed by and construed in accordance with the laws of the State of California. In the event that it is necessary to institute any action to enforce any right granted herein or to redress any alleged breach hereof, then the exclusive venue for such action shall reside with the branch of the Superior Court of the State of California in and for the County of San Luis Obispo, California. 5 c 12. HEIRS AND SUCCESSORS. This Agreement shall be binding on and shall inure to the benefit of the heirs, executors, administrators, successors and assigns of the parties hereto. District shall not assign its rights or obligations under this Agreement to any party without prior written consent of City. 13. SEVERABILITY. Should any portion of this Agreemem be held unenforceable or inoperative for any reason, such shall not affect any other portion. of this Agreement, but the remainder shall be as effective as though such ineffective portion had not been contained herein. 14. A TTORt'ffiY'S FEES. In the event that it is necessary for either party to this Agreement to institute an action to enforce any right granted hereunder or to redress the breach of any provision of this Agreement, then the prevailing party in such action, in addition to any other award made by the Court, shall be entitled to his attorney's fees and costs incurreo in prosecuting such action and the enforcement of any judgment entered in such action from the non-prevailing party, all in an amount to be determined by the Court. Any judgment entered in such action shall include a specific provision authorizing the recovery of attorney's fees and costs incurred in enforcing such judgment. IN WITNESS WHEREOF the parties have executed this instrument at Santa Maria, California as of the date and year above first written. CITY: DISTRICT: City of Arroyo Grande OCEANO COMMUNITY SERVICES a municipal corporation DISTRICT By: By: Tony Ferrara James Hill Mayor President Attest: Attest: By: By: Francis M. Cooney City Clerk Secretary Address: Address: 214 East Branch Street P.O. Box 599 Arroyo Grande, CA 93420 Oceano, CA 93475 6 Approved as to form: Approved as to form: Timothy J. Carmel Alexander F. Simas City Attorney District Counsel . \ 7 EXHIBIT "A" TO WATER WHEELING AGREEMENT '-"'HEELING FACILITY COl\rNECTION LOCATION AND SPECIFICATIONS 1. Point of Deliverv (Wheeling Facilitv Connection Location and Specifications): On Stagecoach Road at the property line, within 75 feet of the Southwest corner of the property. 2. Calculation of Mitigation Fee for Infrastructure Connection: 4 homes x $1,206.00 per home: $4,824.00 3. Wheeling Fee: The City shall charge the District an all inclusive wheeling fee for its services. Such fee shall be determined by the City Council. This fee currently is set at $1.00 per 100 cubic feet of water delivered. Any change in the wheeling fee due to changes in costs shall take effect 30 days after notification of such change to District. Such change in the fee shall be calculated using the same criteria and method used to determine the current fee. 4. Connection Fees: 1" meter charge: $251.00 Distribution charge: $1,190.00 Lopez charge: $1,700.00 Installation charge: $2,000.00 5. Deliverv Schedule: Minimum 1-2 GPM based upon 24 hour delivery period. Estimated 4 AFY total delivery . Attachment 2 POLICY REGARDING REQUESTS TO PROVIDE WATER SERVICE TO PROPERTIES OUTSIDE THE CITY Purpose This policy outlines general guidelines for evaluating and responding to such requests depending upon the size, location and nature of the properties involved. Individual Residence If a request is received to provide water service to an individual residence outside the City's boundaries, the Public Works Director may, subject to LAFCO approval, authorize the service if the following conditions are met: . There are special circumstances involving the property requiring the need for the request; . City water utility infrastructure exists adjacent to the residence; and . The service will not have a significant impact on the City's water supply. Such water service will be provided at an increased water rate for non-residents. Residential Developments Within the City's Proposed Sphere of Influence Existing or proposed developments within the recommended Sphere of Influence areas, as identified in the 2001 General Plan, may request City water service if the request will not impact the City's water supply. Such requests shall require approval by the City Council and LAFCO. To be considered for water service, a development shall meet one of the following criteria: . Provide its own water supply from a source approved by the City; . Have an existing water supply capacity that can be credited to the City that is equal to, or in excess of the estimated amount of usage; or . Pay expenses determined necessary to provide increases in the City's existing water supply. Nothing in this policy shall prevent developments from requesting inclusion in the City's sphere of influence and annexation to be considered on a case-by-case basis. Residential Developments Outside the City's Sphere of Influence The City will not approve extension of water service to developments outside the City's sphere of influence, as recommended in the 2001 General Plan, but such developments may request to utilize the City's infrastructure to transport water under the following conditions: . The development must provide evidence of a long-term commitment of water availability from a source other than the City, which is deemed by the City to be dependable; . An agreement shall be established which releases the City of any responsibility or liability regarding the provision of water; . The City has existing infrastructure adjacent to the development with excess capacity; and . The development shall agree to pay a "wheeling charge" to the City for transport of the water and any capital costs necessary to upgrade the infrastructure to accommodate the request. Requests for City "wheeling" of water shall require approval by the City Council and also require authorization by the Local Agency Formation Commission. Exceptions These provisions are intended only as policy guidelines. Any exceptions to this policy may be granted by pity Council approval, subject to LAFCO consent. . .. Attachment 3 Rob ,e r t & C Y n d e C h ri s tie 624 Stagecoach Road . Arroyo Grande, CA 93420 805-481-8547 . Call voice to fax June 21,2004 Mr. Don Spagnolo City Hall CIT"'( 0:: 208 E. Branch Street ~R8(!YC' GRANDi:: Arroyo Grande, CA 93420 '11'\' ,,~ iOO' }'-.,,- '--. ;,.' .... 1; "'.J8L1C WOF,K.'; OEP7. RE: Water wheeling on upper Stagecoach Road. Dear Mr. Spagnolo:. Thank you for the information you provided me a few days ago by telephone in response to my inquiry regarding a possible water wheeling arrangement in which Oceano would provide water service through Arroyo Grande facilities to our parcels on. upper Stagecoach Road. Regarding the two questions you asked about the location of the proposed services and the amount of water needed, I have put together the following information: Location: The parcels proposed foqhis service are marked in blue in the upper Stagecoach Road area at the approximate center of the enclosed map. I have also marked the City's "big blue tank" further up Stagecoach Road. The two parcels are being divided into 4 lots each. I own the southerly-most parcel and Sateen Bhat owns of the other parcel. We are each separately subdividing our parcels, marked on the enclosed map. .- Ouantity requested: County restrictions exclude secondary residences, so no more than one home will be served on each lot. Using the County average of3.4 persons per residence, and the figure of 150 gallons per person per day you mentioned on the . phone as a maximum flow, I estimate a maximum total flow per day per household of 510 gallons. For six homes, 3 in each of the two subdivisions, that comes to a total of 3060 gallons per day, Although eight lots are involved in the two subdivisions, one lot per subdivision has access to an existing source of water. For fire flow, CDF requires a fire hydrant on the streeffronting each of the two parcels being subdivided. On talking with my engineer, I concluded that a meter for the services at each subdivision would work best with separate lines for adequate flowto Robert & Cmde Christie 6121/0. Page 2 the fire hydrants. This would avoid the need to install additional main lines between the subdivisions on the street paralleling the City's line. Of course, I hope that you will be able to detennine that sufficient capacity exists in the City's system for these projects. In any case, we greatly appreciate your assistance in exploring the feasibilitiy of this water-wheeling project. Please call me at the above number or on my mobile number, 805-264-0391, if any question or problem arises. I look forward to hearing from you. Thank you very much for considering this request. Sincerely, Robert M. Christie I ~ II! "PEI:):Y :3U!JJO.\] , ~ V ~ I t..~~~~ 'J., CliY OF AA!~OYO GRANDE I i -\"".....~ BOCK 7 '.'...., ! " ~~, < ~~ > I "\~..~ ~ !:: , ~ . , . ";"1'00 ~ ;;; I ~~~~~~~ ..- ..- I ":t8~~~~ - ... , - '" I ~ > I n " ... ----. ..... , 1;.::;' C;. ~ -i I ~ ~~~ Gl) ;"" " Cl ;'~ ~';J M ~I;J I 1.:"'\ -1 i ~C/ -l , :z: i " c: r:;'\ ~ ~I~ '" I '-..D0 s ~:..; I z . '::'$;;; 8 l $:/ '" (~) ." .. ~ " ", '" ~ , 0 .)- t r- /~ 0 . ... . ~ " , I E - tlr '" ~ . .. fJf' -,...-- "8 ~ .- ~ . . . ~Cl> '" ~ . , g ~ c .. 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'. ~~\. __~([:~'fl @ / -<f;~ " '-C'.': "'- 1.(,.. _ CZ'l, '/" ,~. ~~ _,'~:_ . . ~' " .. /:. ;l;l;:.. ..~"b' .1" ", =s.:<,~ .... ':: '~" :';'.:.Jk. ~." ~.'">> =_ ~ t" .....) .....~."tl--. _7 _=-"==___ . -,- ,--,\'Y). I o~/- .' cia.' i""';~;d;.~g.,.~", ,=>> . _,,,. .J r(f1::::i ),,~. ",.". / ~~vV ," ~~_ /1..../ I U?1(;;' ..,..:.-..::> ---:""'~(.~~~~{d/2b,\:J?:>oZ~~~S:~~C- \" ;\)\i'~ ,z.: :.~,- ?<. r.t. ". / 'J ~' ...."" .~.,.".J"':E \ ~., lC ... ,......s: '.:J:;';t;.*p::.' <,.~ $4 ...........__ ~ --7' J., '::;". ;~,>,',.,....~- l~ # '.-- -T / . I.' . -:-0f-";<~t$t < (f .~,.. '/. J, - I . ."".9J"',,<r.~..__ /..1 J ';':;:--"'~':irnf;~"1 " ;1."-" l"-. ' '0<' k'"....:,z' 6,/ ~- ;:''''B1:IJ~-%~"' ~~~ Y /\ L --"N,./ ' l 7..:alfiT;;;t.' ~ ~ I -,.. "'=. .... AJ. ...../j ;......wv-7 . 1 .......1 -<;~~~V/~J,/~~fl~ 1~~tl \ ~~~ ~ ~ t?~~~ ,?~,~ ~ti~~~jy~, I J \\ \ -- ~ Q) ~\ '~~<>w,.~'?~~#a~' ~c::,,''''~:> '" 0 <&-.. (] . '\.' ~ ,", r&f"~' '~: ,~4"R<' .- ~ ~ ':'-\-0- c :~. ~~_~~~ <~~~~~~'1 r-i - ~ 0 . ~f!B.{{t~--,~~%'1\~~\'~"S:"~~,,; ~ ,- ~..' . -.;.'~...... i...~~~ \ ""'."f' ;\.:~~ ,.;..J;; r J.../f l- :-.; ~: .' ~~ ';", - ;:_~~~~t~&?-."'-'~~ \"/0.. 11 /)--" U W. . ~ ~s. T ~ ""., ~'fitl.\:~,q-~,~:#r.i>'% ,..,.;',"1~ ,'v ..\ I ({.:r<.. ~~"""~'" \ -"(iVili~t,, "-< '.': """I' ",-,;;' ;,,'I"'''':~: ~ }. ...-./" ". }. .- ",,,41, ; \'Y .0"':_',"'_'._" ,.. I'? ~. .. . ,,,,r..' . '" .,._ ~ \\ II . -,' :.- _ .-lj,..., '_ _,. _-;i~.~' t:~ 'h:-~ .. ~V~.~~1~~W ,~-- "1,' ',..' \~. \ ~,/ ~ '/()..iV,.......'...,.\. ..,& .~~~~.., '.. "'.-... . ~,:.. . : '.' "'.. .' I""'~.;;:.::,'., ..\...'\ :if. r l'-"\~~/' ""'_-" .: . ,...... _.,~ ',~ -' ,:,,~"'W"";,.:C~:'f2~;,' 're. ''a\\Z'' .' ~:');~ ~ '? ,.._.:~.~-~:-llt~'J~~g j : k/-(:y .:,~E; -. ~4~(};~. ,:', "~ .\f ~~~I \,,\~ > !l!J I -\\1' '\; / . r~ l.:\:'~~m _ c::( I"""'''''' . I r - & 'V:;c i%';}, ' '_",.,,1"\' U ~?'~ i ' r J J . . :~... -.0[\/ ~i~W'7 "d""''c'l;r . ' c ~~ _ I b:1P ..' .~. '/."' :,-'" ~<~,EE'~;~~.f .tq.D:;;".{.~~. .' ~ .9,.""..... r~ ~!!""'I '-. I,' /'11 / ~_. Rj\lli-,\V _"_ -''', \,J ~, 1/ /,/ /IU/;'~" . ., ~. ~ .';;. ~ . "c .11 _>~____._._'.~_, - "__0'--_' __ . ------ I I I , ....~ I 1 G.b. MEMORANDUM TO: CITY COUNCIL FROM: DON SPAGNOLO, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER I!Ir SUBJECT: CONSIDERATION OF AN UPDATE OF THE CITY'S WATER USE AND SUPPLY DATE: AUGUST 9, 2005 RECOMMENDATION: It is recommended the City Council: 1. review information presented in the staff report; 2. direct staff to proceed with development and implementation of existing water supply and conservation measures; and 3. reconsider projections and strategies when the groundwater study is completed. FUNDING: There is no funding impact at this time. QISCUSSION: Backqround On November 23, 2004 the Council reviewed the Water Alternative Study and directed staff to coordinate an updated water and sewer rate study, solicit proposals for a groundwater study in cooperation with the other participants of the Basin Management Agreement, provide additional information regarding the Nacimiento water supply option, and prepare an initial study of the costs and feasibility of constructing a desalination plant. In addition, at the May 10, 2005 City Council meeting, Council Member Costello requested staff to provide additional information on water usage and supply and existing mandatory water conservation measures set forth in the Municipal Code. Water Conservation Proqram An update of the water and sewer rates was approved by Council. The study revised the existing rates to meet obligations of each fund and provides for a tiered rate structure. The study also provided an analysis of the charges to the City for the Lopez project. The rates were increased by the amount provided in the study with the tiered rate structure becoming effective in March 2006. The delay is necessary to implement the new utility billing system required to institute the changes in the rate structure. I I I CITY COUNCIL CONSIDERATION OF AN UPDATE OF THE CITY'S WATER USE AND SUPPLY AUGUST 9, 2005 PAGE 2 The tiered rate structure is only one component of a comprehensive conservation program and is combined with a public education effort. A series of public education brochures has been prepared, which will be distributed to City residents with their bi- monthly water bill. The first brochure provides information on water conservation and was distributed in June and July. Articles have also been prepared and printed in both the Times Press Recorder and Stagecoach Express. It has been difficult to obtain reliable data regarding the impacts of tiered rate structures on water usage. Jurisdictions that were contacted have estimated that they have experienced a 1 % to 2% reduction after they were enacted. Therefore, staff has conservatively projected a 1 % reduction in response to the City's overall water conservation efforts for planning purposes. Retrofit Proqram The retrofit program is addressed separately because results can be estimated relatively accurately based upon actual number of units replaced. The program is focused on single family homes built prior to 1985. These homes would have the larger five to six gallons toilets that when retrofitted with 1.6 gallon would yield the greatest water savings. The program also consists of replacing showerheads, installing faucet aerators and adjustments to the pressure regulator. There have been 806 residences that have been retrofitted to date leaving 2,894 remaining. As of April 30, 2005 there has been a savings of 20 acre-feet as a result of the retrofit program. The total projected savings from this program is estimated to be 100 acre-feet. This is based upon a projected 12,000 gallon savings per retrofit and projected 2,894 additional retrofits. Well No. 10 The design of the test well for Well NO.1 0 is complete and a recommendation to reject all bids and to solicit new bids to drill the well will be presented for Council consideration this evening. It is anticipated that new bids will be received on August 30, 2005 and that an award of contract can be considered by Council on September 13, 2005. This well is scheduled to begin producing potable water in September 2006. It is projected to ultimately generate 100 to 200 acre-feet of water per year. Therefore a conservative estimate of 100 acre-feet was included in the water supply and demand projections. Oceano Communitv Services District (OCSD) Temporarv Water Purchase Aqreement Staff has proposed an agreement with OCSD to purchase up to 100 acre-feet of water for a two-year period. This will provide the City an additional buffer while Well No. 10 is constructed and other measures are developed. CITY COUNCIL CONSIDERATION OF AN UPDATE OF THE CITY'S WATER USE AND SUPPLY AUGUST 9, 2005 PAGE 3 Price Canvon Oil Field Water The County is pursuing the Price Canyon Oil Field Water, which could provide water on a short-term basis. The project is intended to deliver water via a 12-inch line from the well field at Price Canyon Road and Route 227 to the base of Lopez Dam. Plains Exploration and Production Company (PXP) is in the process of performing preliminary design of the on site treatment facilities and pipeline alignment to the dam. Completion of the environmental review being performed by the County is awaiting the outcome of an approVal of the EIR for Plains Exploration oil production expansion. A property owner adjacent to the oil field has appealed the EIR, which is scheduled for the August 9, 2005 Board of Supervisor's meeting. Approximately 700 acre-feet are anticipated to be delivered byPXP. There have been preliminary discussions with the Regional Water Quality Control Board, Fish and Game and the Army Corps of Engineers regarding the proposed project. It is expected that permits from these agencies will be required prior to the start of construction. The next step in the process is the preparation of legal documents establishing the obligation by each agency and the oil company. The project is scheduled to be completed in August 2006. The Price Canyon Oil Field Water is projected to provide a source for a 1 O-year period. Therefore, it needs to be accompanied with a strategy for a future permanent water source that would replace it when necessary. Three options include the ability to increase the City's groundwater allocation through the groundwater study, Nacimiento Water Project, or construction of a desalination plant. The Nacimiento Water Project and construction of a desalination plant are both feasible options that could be developed within the time period required. Additional groundwater allocation is an option that could become available immediately once the study is completed. Groundwater Studv A meeting was held on July 27, 2005 to design the scope of work for the groundwater analysis. The study is being prepared and financed by all of the agencies participating in The Basin Management Agreement. A contract and funding allocation will be presented for Council consideration in August. Based on initial feedback from the consultant, staff is optimistic that the findings of the study will result in additional groundwater capacity. Specifically, the consultant indicated that agricultural irrigation technologies have advanced so drastically since the original study was prepared that the study findings will likely identify a substantial increase in available water in the water basin. Under the existing Groundwater Management Agreement, the City will receive the first 359 acre feet of any increase of safe yield allocated to the urban parties. CITY COUNCIL CONSIDERATION OF AN UPDATE OF THE CITY'S WATER USE AND SUPPLY AUGUST 9, 2005 PAGE 4 Nacimiento Desalination Feasibilitv Studv meeting was held on June 8, 2005 to discuss the scope of work and time schedule to complete the study. The scope of work includes the environmental issues, estimated costs and time related issues of extending the Nacimiento pipeline to the South County. The alternatives of constructing a desalination plant was also discussed and the issues of requirements from regulatory agencies, environmental issues, estimated costs and cost benefits compared to other options will be analyzed. The study is scheduled to be completed by the end of this calendar year. The Nacimiento project is in the preliminary stages. Contracts have been approved for surveying and geotechnical services. Selection of the engineering firm is also under way to design the 45 mile pipeline; three reservoirs and three pump stations. Construction contract bidding is expected to begin as early as summer of 2006 with construction extending to 2009/2011. Water Supplv and Demand Due to concerns with the City water supply's capability to accommodate future projects, staff prepared an analysis of the projected water demands and the future water supply. Exhibit 1 of the staff report identifies the City's water sources and the projected usage from development projects. Best estimates were used to program when both future development projects and water supply measures will be completed. All known potential projects are included whether in the planning stage, plan check or construction. The estimated date in which development projects are constructed, as well as the future water supplies, were plotted in Exhibit 2 to compare future water usage and supply. Through a combination of water savings from retrofits and water conservation efforts, water purchased from OCSD on a temporary basis, Well #10 construction, and then reclaimed water from the Price Canyon Oil Field, the City can accommodate existing planned growth consistent with the General Plan with necessary water. Staff has incorporated conservative estimates throughout these projections, so we believe the forecast will be reliable. Most notably, the base year in the table is calendar year 2004, which was a very dry year. The following table shows historical data on water use. As you can see, 2004 experienced one of the highest per capita usage rates in the last 10 years. The table includes a 270-acre'foot credit under usage in 2005 in order to accurately reflect the reduction in usage due to the heavy rainfall. This credit is then removed in 2006 so the table assumes a worst-case scenario of returning to rainfall levels of 2004. If more rainfall is received, available surplus water will increase. CITY COUNCIL CONSIDERATION OF AN UPDATE OF THE CITY'S WATER USE AND SUPPLY AUGUST 9, 2005 PAGE 5 TOTAL TOTAL METERED PRODUCTION PRODUCTION CONSUMPTION UAW' UAW ESTIMATED PER CAPITA YEAR (ae-ft) (ae-ft) (ae-ft) (%) POPULATION (gped) 1987 2,891 2.830 61 2,1 N/A N/A 1988 3,027 2,997 30 1 13,750 197 1989 2.938 2,785 158 5.2 14,090 186 1990 2,922 2,755 168 5.7 15,150 172 1991 2,665 2,484 180 6.8 14.600 163 1992 2,662 2,533 129 4.8 14.650 162 1993 2,747 2,600 147 5.4 15,070 163 1994 2.703 2,487 215. 8 15,150 159 1995 2.628 2,585 43 1.6 15,500 151 1996 2.794 2.739 55 2 15,500 161 1997 3,087 3.021 67 2.2 15,500 178 1998 2,766 2,567 199 7.2 15.500 159 1999 3,173 2.983 190 6 15.776 180 2000 3,384 3,231 153 4.5 15.851 191 2001 3,303 3,210 93 2.8 16,115 183 2002 3,503 3.353 150 4.3 16.294 192 2003 3,517 3,458 41 1.7 16,623 189 2004 3,594 3,490 104 2.9 16,637 193 Projections for water use for the development projects were determined by using the General Plan estimate of 2.4 people per household for residential units, 2.0 people per office/commercial suite and 1.0 people per senior development unit. These factors were applied to projects within the City that are either under construction, in plan check or inthe process of obtaining entitlements. Other than rainfall, the only item included within the projections outside the control of the City is the Price Canyon Oil Field Water. Staff does not believe that this should alter our approach because: 1) given the preliminary approvals, staff believes the project is likely to obtain final approvals and complete construction; 2) if for some unforeseen reason, the project were delayed or rejected, additional groundwater allocation would likely be identified through the groundwater study in an amount sufficient to replace the water programmed for the Price Canyon Oil Field Water; 3) if neither of those options were successful, it is likely the City will be successful in gaining additional Lopez Water allocation when the Habitat Conservation Plan is completed and implemented; and 4) lastly, if all these options were unsuccessful, it would likely be possible to negotiate additional water allocations from our neighboring jurisdictions for a temporary basis until long-term measures take effect. CITY COUNCIL CONSIDERATION OF AN UPDATE OF THE CITY'S WATER USE AND SUPPLY AUGUST 9, 2005 PAGE 6 Therefore, based on these projections, staff believes it is safe for the City to proceed with its normal development review process in a responsible way without threat of water shortages, except in periods of serious drought. During such periods, the City's Mandatory Water Conservation Measures would become appropriate. Mandatorv Water Conservation Measures According ,to Arroyo Grande Municipal Code Section 13.05.010, (see Exhibit 3) the "City Council shall from time to time adopt resolutions declaring the level of the city water supply condition, which in turn will determine the water conservation measures in effect at any particular time within the City. Thewording of this ordinance provides some flexibility for the City Council. The four levels of water supply conditions are: 1. Normal Water Supply Condition: 0 - 90% percent of annual available water supply 2. Moderately Restricted Water Supply: 90% - 95% 3. Severely Restricted Water Supply: 95%-99% 4. Critical Water Supply Condition: 100% Mandatory measures take effect immediately following adoption of the required resolutions. The different categories place mandatory restrictions on time and ability for irrigation, washing cars, walkways, patios, swimming pools, etc. Due to the rainfall experienced this year, these measures are not yet applicable under existing conditions. In 2004, they could have been implemented because water supply conditions went to both Moderately and Severely Restricted levels. However, resolutions were not recommended at that time because the primary problem was determined to be one of inadequate supply that needed to be addressed through voluntary conservation and increased supply measures. Staff believes the original intent of these measures was to implement during periodic and temporary emergency drought situations. In such instances, they will be effective in responding to the emergency situation at hand. The current issue has not been a short- term emergency, but rather a long-term supply issue. It presents a difficult situation to put these mandatory measures in place with no future plan as to when they would end. Therefore, staff proposed beginning with voluntary measures prior to activating the mandatory measures, which we believed would' be better received and overall more effective. Staff is now also proposing the Municipal Code be modified to better reflect the intent of these conservation measures and when they would be used. CITY COUNCIL CONSIDERATION OF AN UPDATE OF THE CITY'S WATER USE AND SUPPLY AUGUST 9, 2005 PAGE 7 ALTERNATIVES: - Review information presented in the staff report, direct staff to proceed with development and implementation of existing water supply and conservation measures; and reconsider these strategies when the groundwater study is complete. - The City Council could direct staff to prepare a moratorium that would be in effect until either the Price Canyon Oil Field Water is approved or the groundwater study concludes there is more groundwater available for the City's allocation. It appears by the City's projections that water will be available for all future projects consistent with the General Plan, but projections could still be impacted by fluctuations of water use and timing of planned projects. Therefore, another option for the City Council to consider would be to establish a water allocation system. The attached table would likely be used as a base until conditions change, at which time the table would be updated. Projects would be required to obtain a water allocation prior to either building permit or project approval. Staff would recommend it be at the time of building permit, but not apply it to projects that have already received their entitlements. Therefore, projects lacking water could obtain approvals and work with the City to obtain their water allocation. Under the existing plan, as long as usage and development proceed as projected, all planned projects would receive their allocations. Impacts on development would only occur if there were changes resulting from the groundwater study or other planned measures, which would then require an adjustment in the available water allocations. The process could also be established with a point system, providing higher priority to projects meeting certain needs in the community, such as economic development, affordable housing, implementation of water conservation measures, etc. This option is very conceptual. If interested, the City Council would need to direct staff to perform additional research and prepare recommendations. - Provide direction to staff. Attachments: ' 1. Projected Water Use and Water Supply 2. Water Supply Versus Usage 3. Chapter 13.05 of the Municipal Code --- -- _.u_ _ ._____ Exhibit 1 >- oq-U1Ll)ll)l!)LOlOLnLOLOLCll!)Lt)LOLO :2: a:::: Z 000000000000000 a.. <( @LLOOODQOOOOOoooooo 0 ...J I- -NNNNNNNNNNNNNNN UJ ~ '" 0 ...... ....... ,^ ~ 0 0 ,,0 I- - -0 - _ _ _ _ _ _ _ _ _ _ _ _ 0 ~- 00 ~_~o Ol.OO"- w~ ~oooooo~ooooo .. " ~cnO':loomoooQ)L1":! . .LOOOWW...JMMMMMMMMC"')C"')(V')MC"')C"')C'"') N ~ ~NN~~NN~l.O~ NN~~OO~I-~-",~-",-___________ ~'" " LLT""""- NNMMm .,.....,....0<(;:2.,......... 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Q)f- 0 00 ::J 00 W 0 ro<( f- f- -' :::;::::;: 0:: O::f-f- f- >->- -' ::J Zf-<(~~ ~~ ---- Exhibit 2 I LOOW€/1:~ , LOOW€/O~ / LOOW€/9 LOO1:/0€/9 , / LOO1:/O€lv LOO1:/91:/1: ~ c.. 900W€/U c.. W ::> C) C/) 0:: <( 900W€/0~ w U) ~ ::l U) ~ ::l ~ 9001:1 ~ €/9 w + U) !;: II:: , W C w > 9001:/0€/9 CJ <l: ~ C/) ::> D.. 9001:/0€lv 0:: D.. w ::l ~ U) ~ II:: 9001:/91:/1: W + ~ , SOO1:n€/1:~ \ SOOW€/O~ ---- '-'4 '\ SOOW€/9 SOO1:/0€/9 .-J -- SOO1:/O€lv SOO1:/91:/1: vOOW€/1:~ 0 0 0 '0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N 0 00 CD ... N 0 <i <i '" '" '" '" '" (HY3A1.l.:l-3HOYl H3.l YM j - Exhibit 3 13.05.010 Chapter 13.05 C. The city council may from time to time adopt resolutions designed to implement the WATER CONSERVATION provisions of this chapter. (Ord. 540 ~ I, Exh. A (part), 2003) Sections: 13.05.010 Water supply conditions. 13.05.020 Normal water supply 13.05.020 Normal water supply. conditions. conditions. During normal water supply conditions the 13.05.030 Moderately restricted following restrictions and measures shall be in water supply conditions. effect: 13.05.040 Severely restricted water A. Outdoor water use for washing vehi- supply conditions. eles, boats, paved surfaces, buildings and 13.05.050 Critical water supply other similar uses shall be attended and have conditions. hand-controlled water devices, typically in- 13.05.060 Penalties for eluding spring loaded shutoff nozzles. noncompliance. B. Outdoor irrigation resulting in exces- 13.05.070 Violation-Penalty. sive gutter runoff is prohibited. (Ord. 540 ~ I, Exh. A (part), 2003) 13.05.010 Water supply conditions. A. The city council shall from time to time 13.05.030 Moderately restricted water adopt resolutions declaring the level of the supply conditions. city water supply condition, which in turn will During moderately restricted water supply determine the water conservation measures in conditions the following restrictions and effect at any particular time within the city. measures shall be in effect: The four levels of water supply conditions are: A. Outdoor water use for washing vehi- 1. Normal Water Supply Condition. De- eles, boats, buildings or other similar uses fined as consuming zero to ninety (90) percent shall be attended and have hand-controlled of the annually available water supply; watering devices, typically ineluding spring- 2. Moderately Restricted Water Supply loaded shutoff nozZles. Condition. Defined as consuming ninety (90) B. Use of water which results in excessive to ninety-five (95) percent of the annually gutter runoff is prohibited. available water supply; C. No water shall be used for cleaning 3. Severely Restricted Water Supply driveways, patios, parking lots, sidewalks, Condition. Defined as consuming ninety-five streets, or other such uses except as found (95) to ninety-nine (99) percent of the annu- necessary by the city to protect the public ally available water supply; and health or safety. 4. Critical Water Supply Condition. De- D. Outdoor Irrigation. fined as consuming one hundred (100) percent 1. Outdoor irrigation is prohibited be- of the annually available water supply. tween the hours often (10:00) a.m. and four B. Upon adoption of the required resolu- p.m. tion, the restrictions and measures identified 2. Irrigation of private and public land- in this chapter shall take effect immediately. scaping, turf areas and gardens is permitted at (Arroyo Grande Supp. No.3, &-(3) 306 13 .05 .040 even-numbered addresses only on Mondays gation is permitted at all addresses on Satur- and Thursdays and at odd-nwnbered addresses , days and Sundays however, in all cases cus- only on Tuesdays and Fridays. No irrigation tomers are directed to use no more water than of private and publiclandscaping, turf areas necessary to maintain landscaping. and gardens is permitted on Wednesdays. Irri- D. Emptying and refilling swimming gation is permitted at all addresses on Satur- pools and commercial spas is prohibited ex- days and Sundays however, in all cases cus- cepttoprevent:structural damage and/or to tomers are directed to use no more water than provide for the public health and safety. necessary to maintain landscaping. E. Use of potable water for compaction or E. Use of potable water for compaction or dust control purposes in construction activities dust control purposes in construction activities is prohibited. (Ord. 540 ~ I, Exh. A (part), is prohibited. (Ord. 540 ~ 1, Exh. A (part), 2003 ) 2003 ) 13.05.050 Critical water supply 13.05.040 Severely restricted water conditioDll. supply conditions. In addition to the conditions specified in During severely restricted water supply Section 13.05.040, the following restrictions conditions the following restrictions and and measures shall be in effect during critical measures shall be in effect: water supply conditions: A. Use of water which results in excessive' A. Outdoor irrigation of private or public gutter runoff is prohibited. landscaping, turf areas and gardens is prohib- B. Outdoor Water Use - Except Irriga- ited. tion. B. Outdoor water use for washing vehicles 1. No water shall be used for cleaning is prohibited except at a public car wash facil- driveways, patios, parking lots, sidewalks, ity. streets or other such use except where neces- The city council may also impose any wa- sary to protect the public health and safety; ter-rationing requirements as it deems appro- 2. Outdoor water use for washing vehicles priate to protect public health, safety, welfare, shall be attended and have hand-controlled comfort and convenience. (Ord. 540 ~ I, Exh. watering devices, typically, including spring- A (part), 2003) loaded shutoff nozzles. C. Outdoor Irrigation. 13.05.060 Penatties for 1. Outdoor irrigation is prohibited be- noncompliance. tween the hours often (10:00) a.m. and four A. Violation of any provision of this chap- p.m. ter may result in termination of water service 2. Irrigation of private and public land- until such violation is corrected, and until all scaping, turf areas and gardens is permitted at appropriate fees and penalties are paid in full even-numbered addresses only on Mondays and will be subject to the following admini- and Thursdays and at odd-nwnbered addresses stration procedure: only on Tuesdays and Fridays. No irrigation 1. Written notice to the alleged offender, of private and public landscaping, turf areas including the furnishing of informational ma- and gardens is permitted on Wednesdays. Irri- terial and advice where appropriate; 306-1 (Arroyo Grande Supp. No.3, 8-03) 13.05.070 ~ Recovery of all city staff costs, includ- ~. ing overhead, for any second or greater of- fense within anyone-year period; 3. Additional civil administrative penal- ties for any third or greater offense within any one year period; 4. . The right to apllealtirsf to the utilitY billing adjustment co~ittee and then to the city council. (Ord. 540 S I, Exh. A (part), 2003) 13.05.070 Violation-Penalty. In addition to, and completely separate' from, the civil enforcement provisions ofthe ordinance codified in this chapter, any person who knowingly and willfully violates the pro- visions of this chapter shall be guilty of a criminal misdemeanor as provided in the gen- eral penalty provisions of this code. All previ- ous attempts by the city to obtain compliance by the defendant may be introduced as evi- dence of the offender's knowledge and will- fulness. (Ord. 540 S I, Exh. A (part), 2003) (Arroyo Grande Supp. No.3, 8-03) 306-2 --~~- 11.8. MEMORANDUM TO: CITY COUNCIL FROM: STEVEN ADAMS, CITY MANAGER ~ SUBJECT: CONSIDERATION OF APPOINTMENT OF VOTING DELEGATE AND ALTERNATE FOR THE LEAGUE OF CALIFORNIA CITIES ANNUAL CONFERENCE DATE: AUGUST 9, 2005 , RECOMMENDATION: It is recommended the City Council appoint one Council Member as the voting delegate and one Council Member as the alternate delegate for the League of California Cities Annual Conference. FUNDING: The only costs associated with this action are costs for attendance at the Annual Conference. DISCUSSION: This year's League of California Cities Annual Conference is scheduled to take place October 5 - 8, 2005 in San Francisco at the Moscone Convention Center. One important activity of the Conference is the annual business meeting, to be held on Saturday, October 8th at 10:30 a.m., when the membership takes action on Conference resolutions. Annual Conference resolutions guide the League and its members in their efforts to improve the quality, responsiveness and ( vitality of local government in California. League bylaws state that "any official of a Member City may, with the approval of the City Council, be designated the City's designated voting delegate or alternate delegate to any League meeting. Designated voting delegates (or their alternates) registered to attend the Annual Conference constitute the League's I General Assembly." AL TERNA TIVES: The following alternatives are provided for the Council's consideration: . Appoint one Council Member as the voting delegate and one Council Member as the alternate delegate for the League of California Cities Annual Conference; or . Provide staff with other direction. I I I ! ; I -- - 111)0 l( ,~II,1 L'{ 1,1;-.:' 1:1'1 i'iillliill~h'li [.JI. S,c', ( LEAGUE :\,\U',\,\ll-:~T\ 1, CA '!'l::;:.j \1''In''\I:I, C:\ ')]1111, Of Cidl FOIZN 1,\ I'll: I') IhJ (,"S-N_'lIll I'll: Ih2(1) .',(j'l-] .$1" C IT I E S I.X: (')1(,) (;"J's-SL11) I'X: 1(l.Y'} 3\1')" 15.'j.::; July 6, 2005 To: The Honorable Mayor and City Council From: Pat Eklund, League President, Council Member, Novato Re: Designation of Voting Delegate for 2005 League Annual Conference The League's 2005 Annual Conference is scheduled for Thursdav. October 6 throuqh Saturdav. October 8 in San Francisco. One very important aspect of the Annual Conference is the Annual Business Meeting where the membership takes action on conference resolutions. Annual conference resolutions guide cities and the League in our efforts to improve the quality, responsiveness and vitality of local government in California. It is important that all cities be represented at the Annual Business Meeting on Saturday, October 8th"at 10:30 a.in. at the San Francisco Moscone Convention Center West. To expedite the conduct of business at this important policy-making meeting, each city council should designate a voting representative and an alternate who will be registered at the conference and present at the Annual Business Meeting. A voting card will be given to the city official that is designated and indicated on the enclosed "Voting Delegate Form." Please complete and return the enclosed form to the League's Sacramento office at the earliest possible time (not later than Monday, September 6, 2005), so that proper records may be established for the conference. The city's designated voting delegate may pick up the city's voting card at the Voting Card desk located in the League registration area. The Desk will be open on October 6, 7, and 8. Voting cards should be picked up before the Annual Business Meeting on October 8th. The voting procedures to be followed at this conference are printed on the reverse side of this memo. Your help in returning the attached "Voting Delegate Form" as soon as possible is appreciated. If you have any questions, please call Lorraine Okabe at (916) 658-8236. -- -- ~ ~ ~F~~9c,~,~ " CITIES Annual Conference Voting Procedures 1. Each member city has a right to cast one vote on matters pertaining to League policy. 2. To cast the city's vote, a city official must have in his or her possession the city's voting card and be registered with the Credentials Committee. 3. Prior to the Annual Conference, each city should designate a voting delegate and an alternate and return the Voting Delegate Form to the League Credentials Committee. 4. The voting delegate, or alternate, may pick up the city's voting card at the voting card desk in the conference registration area. 5. Free exchange of the voting card between the voting delegate and alternate is permitted. 6. If neither the voting delegate nor alternate is able to attend the Business Meeting, the voting delegate or alternate may pass the voting card to another official from the same city by appearing in person before a representative of the Credentials Committee to make the exchange. Prior to the Business Meeting, exchanges may be made at the 'Voting Card" table in the League Registration Area. At the Business Meeting, exchanges may be made at the "Voting Card" table in the front of the meeting room. Exchanges may not be made while a roll call vote is in progress because the Credentials Committee will be conducting the roll call. 7. Qualification of an initiative -resolution is judged in part by the validity of signatures. Only the signatures of city officials who are authorized to use the city's voting card, and who have left a sample of their signature on file for the Credentials Committee, will be approved. 8. In case of dispute, the Credentials Committee will determine the right of a city official to vote at the Business Meeting. - ---... -.-- - - '- -- ~ ~F~~I'd,}!~ CITIES 2005 ANNUAL CONFERENCE VOTING DELEGATE FORM CITY: 1. VOTING DELEGATE: (Name) (Title) 2. VOTING ALTERNATE: I (Name) ! (Title) I ATTEST: 'j I (Name) I (Title) PLEASE COMPLETE AND RETURN TO: League of California Cities ! Attn: Lorraine Okabe , , 1400 K Street ' ' , , Sacramento, CA 95814 ,-1 4 Fax: (916) 658-8240 Deadline: Mondav. September 6. 2005 , I , I ,,' '1 I !