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Minutes 1995-06-13 (486 MINUTES REGULAR MEETING OF THE CITY COUNCIL TUESDAY, JUNE 13, 1995 CITY COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA The city Council of the City of Arroyo Grande met at 7:30 p.m., with Mayor A. K. "Pete" Dougall presiding. 1. AND 2. FLAG SALUTE AND INVOCATION Members of the Exchange Club of the Central Coast led the Pledge of Allegiance to our Flag, and the Rev. Dr. Norman F. Somes of st. Barnabas Episcopal Church delivered the invocation. 3. ROLL CALL Present with Mayor Dougall were Council Members Drew Brandy, Michael Fuller, Michael Lady and James Souza. Staff members present were Interim city Manager Rick TerBorch, City Attorney Roger Lyon, city Clerk Nancy Davis, Parks and Recreation Director John Keisler, Public Works Director John Wallace, Finance Director David Bacon and Director of Building and Fire Kurt Latipow. 4. ORAL COMMUNICATIONS LINDA SHEPHARD, representing residents of Linda Drive, spoke to the Council about excessively loud music originating on June 3, 1995, from Grand Avenue directly in line with homes on Linda Drive. She presented a petition signed by the residents asking the Council to take immediate action to prevent any similar occurrence in the future. 5. SPECIAL PRESENTATIONS Mayor Dougall read a proclamation about "National Flag Day," June 14, 1995. Katcho Achadjian and Mike McFarlen of the Exchange Club accepted the proclamation and made presentations related to the Flag. 6. CONSENT AGENDA It was moved by Souza/Brandy, and the motion passed unanimously to approve Consent Agenda Items 6.a. through 6. k. , with the recommended courses of action. 6.a. May 23, 1995, city Council Minutes. Approved. 6.b. June 7, 1995, Senior Advisory Commission Minutes. Information. 6.c. May, 1995, Investment Report. Information. 6.d. Liability Claim; Lisa Trett, Larry Trett, Linda Gladding, 1 r . 487 CITY COUNCIL MINUTES JUNE 13, 1995 Lori Krushat, Larita Randolph. Claim rejected. 6.e. Improvements on Highway 227 by Caltrans (Grand Avenue and , West Branch Street). Information. 6.f. Final Progress Payment on Repairs to the Swinging Bridge; Vernon Edwards Constructors. Approved. 6.g. Contract with Earth Systems Consultants for Soils Testing; Project No. 60-70-95-01; Replacement of Water and Sewer Improvements in Mason, Poole, and Whiteley Streets. Approved. 6.h. Declaration of Surplus Equipment (1960 Willys Jeep Patrol). It was moved by Souza/Brandy (5-0-0, Souza, Brandy, Lady, Fuller and Dougall voting aye) to approve Resolution No. 3076 Declaring Surplus Property. 6.i. Adoption of Employment Agreement; Director of PUblic Works. Agreement adopted. 6.j. Application for Helen Putnam Award for Excellence. Information. 6.k. Resolution Designating Applicant's Agent for Reimbursement of FEMA. It was moved by Souza/Brandy (5-0-0, Souza, Brandy, Lady, Fuller and Dougall voting aye) to approve Resolution No. 3077 Designation of Applicant's Agent. 7. REGISTER OF CHECKS It was moved by Lady/Brandy, and the motion passed unanimously to approve Cash Disbursements in the amount of $773,534.27, as listed in the June a, 1995, staff report of Finance Director Bacon. 8.A. CONTINUATION OF PUBLIC HEARING - AMENDMENT TO TITLE 6. CHAPTER 5 OF THE MUNICIPAL CODE REGARDING RECREATIONAL VEHICLES; CITYWIDE Mr. TerBorch referred to the June 13, 1995, staff report of the Planning Director. He discussed language added to the proposed ordinance dealing with RV storage on vacant residential lots. He said the new ordinance will allow one RV to be stored on a vacant residentially-zoned parcel for a period not to exceed 90 days provided the lot owner is the registered owner of the RV. He said if a lot owner obtains a building permit within the 90 day period, the RV may continue to be stored on the lot pursuant to the provisions of the ordinance. After being assured that the Public Hearing had been duly published and all legal requirements met, Mayor Dougall declared 2 . 4 a'8 CITY COUNCIL MINUTES JUNE 13, 1995 the hearing open and said all persons would be heard regarding the matter. LARRY ANDERSON, Ruth Ann Way, said the proposed ordinance, with the additional language regarding vacant lots, will take care of part of the problem as to what is allowed on vacant lots, but that the Council may want to further regulate what vehicles and equipment (other than RVs) can be stored on vacant lots. When no one further came forward to speak, Mayor Dougall closed the hearing to the floor. Mr. TerBorch said the City does have in place an abatement process covering storage of non-operable vehicles, and perhaps that ordinance could be amended to include vehicles or equipment stored on vacant lots. After further Council discussion, the Interim City Manager read the title of the proposed ordinance, "An Ordinance of the city Council of the city of Arroyo Grande Issuing a Categorical Exemption, Repealing the Existing Title 6, Chapter 5 of the Municipal Code Entitled "House Trailers" In Its Entirety and Adopting a New Title 6, Chapter 5 Entitled "Recreational Vehicles." It was moved by Brandy/Souza, and the motion passed unanimously to dispense with further reading of the ordinance and introduce the ordinance by title only. Mayor Dougall said that constituted the first reading of the ordinance. 9.A. FINAL REPORT ON SWINGING BRIDGE AND PRESENTATION Mr. Wallace said the bridge was completed on May 24, 1995, and ready for use during the Strawberry Festival. He said he had just given the Finance Director a form to sign requesting reimbursement from FEMA for $98,000, and that he would be looking for further reimbursement. Mayor Dougall said representatives of the village Merchants Improvement Association, the South county Historical Society and the Arroyo Grande Woman's Club were present to make a presentation to the city. Bob Lund, Rich Neufeld and Joan Alpaugh presented a check to Mr. Wallace for $5,700, monies raised for rebuilding of the swinging Bridge. They said the money was to make up for the shortfall between the cost of rebuilding the bridge and the FEMA reimbursement. Mayor Dougall said the Council wished to thank all those who contributed to the bridge fund. 3 . . 489 CITY COUNCIL MINUTES JUNE 13, 1995 10.A. ADOPTION OF EMPLOYM~NT AGREEMENT: CITY ~NAGER It was moved by Brandy/Lady, and the motion passed unanimously to approve the agreement between the city of Arroyo Grande and Robert L. Hunt for services as City Manager. Mayor Dougall introduced Mr. Hunt and his wife, Donna, who were in the audience. 10.B. CONSIDERATION TO ADOPT NEW ORDINANCE TO EXTEND UTILITY USERS TAX. AMENDMENT TO MUNICIPAL CODE ORDINANCE 454 C.S. Mr. TerBorch said the utility Users Tax was adopted on September 14, 1993, to make up for an annual loss of approximately $620,000 in city revenues as a result of the state's redistribution of property tax revenue. He said the tax expires on June 30, 1995. He said approximately $900,000 of City revenues are currently derived annually from the utility users tax. Mr. TerBorch suggested that a de-escalation clause could be built into the new ordinance via a resolution adopted at the same time as the ordinance. He said the proposed ordinance before the Council included a three-year sunset clause. Council Member Souza expressed concern about not having seen the 1995/1996 budget and not knowing how the monies are being spent. He said he could not decide on the tax without seeing the budget. Council Member Brandy said he did not think the budget would have changed much from the current year and that the tax money would be needed. He said the City's reserve fund should be strengthened. He said the tax was needed so that the City's economic planning could go forward. Council Member Fuller said he also would like to see the new budget so he could judge if the city could survive without the tax or could decrease it as fast as possible. Council Member Lady said the tax is needed so that a high "quality of life" can be maintained in Arroyo Grande. He said the City needs to continue on the path to economic stability. Mayor Dougall said he wanted to see the new budget before making a decision. He said the City's budget is difficult to understand, and he would like to see, for the first time, the financial condition of the city. Speaking against reinstating the Utility Users Tax were BERNARD LANDSMAN, BOB BOWEN, JENS WAGNER, EVELYN CALHOUN TALLMAN, FRED FLANNELL and BRUCE STEUDE. They said that private citizens and businesses have to tighten their budgets and the City should 4 . 4 9' 0 CITY COUNCIL MINUTES JUNE 13, 1995 do the same. JIM YACONO said a three-year extension was too long, that there should be only a two-month extension while the Council sees what the budget looks like without the tax. HEATHER JENSEN, Chamber of Commerce Executive Director, said the city is just getting on its feet and becoming healthy. She said the tax money is needed to carryon the work of the Economic Development Committee. She said a six-month extension of the tax would be appropriate while a de-escalation plan is studied. Council Member Souza said he wanted to see at the next meeting two City budgets - one balanced with no utility tax and one with the tax. He said if the ordinance should be extended at this meeting, it should be for just one year. Council Member Fuller said the budget needs to be balanced without the tax money. He said it is better to generate more business without taxing the people. Council Member Brandy asked about taxing a citizen for both his business and home, and the city Attorney said he would look into that matter. Council Members discussed extending the ordinance for just a three or six month time period, while the budget is studied and the necessity of the tax determined. It was moved by Fuller/Dougall to allow the present ordinance to sunset, do the budget review, and after the budget review, if necessary, revisit the Utility Users Tax, understanding there will be a three month lag time to reenact the ordinance. On a roll call vote, Fuller and Dougall voted aye, and Brandy, Souza and Lady voted no. The motion failed. It was moved by Souza/Lady to have a first reading of the utility Users Tax ordinance, changing the June 30, 1998, sunset date to June 30, 1996, hold the 1995/1996 budget hearings and, within the four to five month time period, make any changes to the ordinance necessary. On a roll call vote, Souza, Lady and Brandy voted aye, and Fuller and Dougall voted no. The motion passed. Council Member Souza said he believed the majority of the Council would like to see two draft 1995/1996 budgets - the one that is being prepared at this time, and one without the Utility User Tax monies. Mr. TerBorch said he would present to the Council a "base budget" and on top of the base budget would be 5 . 491 CITY COUNCIL MINUTES JUNE 13, 1995 the other items that he had been asked to put in as separate policy items, with costs broken out so they can be evaluated separately. 10.C. RESOLUTION OF THE CITY OF ARROYO GRANDE RATIFYING AND ENDORSING THE ACTION OF THE SAN LUIS OBISPO INTEGRATED WASTE MANAGEMENT AUTHORITY AS THE LOCAL TASK FORCE AND APPOINTMENT OF BOARD MEMBERS AS SOLID WASTE LOCAL TASK FORCE REPRESENTATIVES It was moved by Souza/Fuller (5-0-0, Souza, Fuller, Brandy, Lady and Dougall voting aye) to approve Resolution No. 3078 Ratifying and Endorsing the Action of the San Luis Obispo County I Integrated Waste Management Authority to Establish Said Authority i as the Solid Waste Local Task Force, and Appointment of Board Members as Solid Waste Local Task Force Representatives. ~ 11. WRITTEN COMMUNICATIONS Mayor Dougall said there will be a joint meeting of the San Luis Obispo County City Councils on September 27, 1995, in Morro Bay. He said topics to be discussed will include county policies on property and sales tax impacts on city annexations, presentations on waste management systems and JPAs, the need for joint planning agreements between cities and counties for areas surrounding the cities, and city participation in funding of the San Luis Obispo County visitors and Conference Bureau. He said the meeting would be open to the public. 12. ORAL COMMUNICATIONS Mayor Dougall thanked Mr. TerBorch for all he has done as Interim city Manager, and for putting together the City Manager review process. 13. CLOSED SESSION None. 14. ADJOURNMENT It was moved by Souza/Fuller, and the motion passed unanimously to adjourn the meeting at 9:20 p.m. A reception for the new City Manager and his wife followed the meeting. AYOR ATTEST: ~ a.~ NANCY~IS' CITY CLERK 6