Minutes 1994-02-08
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MINUTES
REGULAR MEETING OF THE CITY COUNCIL
TUESDAY, FEBRUARY 8, 1994
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 Matthew Peter Gallagher, III, presiding.
1. & 2. FLAG SALUTE AND INVOCATION
Mayor Gallagher led the Pledge of Allegiance to our Flag,
and the Rev. Phil Coleman of Oak Park Foursquare Church of Arroyo
Grande delivered the invocation.
3. ROLL CALL
Present were Mayor Gallagher and Council Members Drew !
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Brandy, Bernard Burke, Gene Moots and James Souza. Staff Members I
present were Acting city Manager Rick TerBorch, city Attorney J
Roger Lyon, City Clerk Nancy Davis, Planning Director Doreen '..-'
Liberto-Blanck and Finance Director David Bacon.
4. ORAL COMMUNICATIONS
a. PETER MILLER, attorney for ottse, Inc. , and general
representative for the Rancho Grande project, and MIKE DURKEE,
also representing the project, requested that the Council move
forward with approval of the final map for Tract 1994. Mr. Miller
said conditions of approval have been completed and site
improvements finished, except for the James Way basin. He said
he had been unable to communicate with city staff, except through
the special counsel. He said he would like the tract approval to
be on the next city Council agenda. Mr. Durkee said ottse has
rights and responsibilities through the Development Agreement and
the Subdivision Map Act.
Mr. TerBorch said the City is attempting to resolve as soon
as possible the many issues and legal complexities connected with
the project.
b. SUSAN CARR, 312 Gularte Road, said she objected to sonic
Cable Television "Spice" channel. She said the channel had been
cancelled for the time being, but she wanted to know where the
City will stand on pornographic programming when Sonic's contract
with the City is negotiated in the near future.
Mayor Gallagher asked Ms. Carr to meet with the Acting city
Manager on the matter.
5. CONSENT AGENDA
It was moved by Burke/Moots, and the motion passed
unanimously to approve Consent Agenda Items 5.a., 5.b., 5.c. and
5.e., with the modification to the 5.a. city Council Minutes and
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the recommended courses of action.
5.a. January 25, 1994, City Council Minutes. Approved.
Modification was made on Page 4, Paragraph 2, Line 8 by changing
$700,000 to $200,000.
S.b. Annual General City Audit, Ending June 30, 1993.
Information.
S.c. January, 1994, Investment Report. Information.
S.e. Hiring of John L. Wallace and Associates as Interim Public
Works City Engineer. Approved.
It was moved by Souza/Brandy, and the motion passed
unanimously to approve Consent Agenda Item 5.d., with the
recommended course of action.
S.d. Long Range Planning Committee's Update on Traffic Issues.
Information.
STEVE DEVENCENZI of the Council of Governments clarified
some of the funding issues for the City Council members. He
referred to the February 8, 1994, Staff Report by the Planning
Director. He said on Page 1, Last Paragraph, Line 4, "Urban SHA
funds" should read "Urban STP/SHA funds." He said he wanted to
make clear to the Council that monies for the Long Range Study
are to be allocated from the regional SHA funds and are not
coming from the City's General Fund.
Council Member Brandy stressed the importance of completing
the Circulation Element update to meet State requirements.
Mayor Gallagher asked what the Route 101 Corridor
Alternative Analysis would include, and Mr. Devencenzi said it
would be an analysis of San Luis Obispo to El Campo Road looking
for alternatives to widening the road.
6. REGISTER OF CHECKS
It was moved by Burke/Souza, and the motion passed
unanimously to approve Cash Disbursements in the amount of
$721,727.90, as listed on the February 2, 1994, Staff Report of
the Finance Director.
7.A. CONTINUATION OF PUBLIC HEARING - UPDATE OF TRAFfIC FEE
PROGRAM INCLUDINGr BUT NOT LIMITED TO. MODIFICATION OF METHOD OF
CALCULATING TRAFFIC FEE: CITYWIDE
The Planning Director said if the Council decides to have
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the second reading and adoption of the ordinance updating the
Traffic Fee program, the Public Hearing should be continued to
March 22, 1994, when the ordinance would be in effect and the
resolution setting the fees could be passed. She said the
resolution would become effective 60 days after its adoption.
Council Member Brandy asked if the Council would have
information provided by Staff when it is deciding whether or not
to adjust fees. The City Attorney said Staff would be providing
information and recommendations.
After being assured that the Public Hearing had been duly
published and all legal requirements met, Mayor Gallagher
declared the Public Hearing open and said all persons would be
heard regarding the matter. When no one came forward to speak,
Mayor Gallagher closed the hearing to the floor. -
Council Member Burke said the Council recognized the need to
update the traffic fees because of adverse economic impacts on
new business. He complimented Staff, the Planning Commission and
the Traffic Commission for their work on the update.
It was moved by Burke/Moots (5-0-0, Burke, Moots Brandy,
Souza and Gallagher voting aye), to adopt Ordinance No. 461 C.S.
Establishing Transportation Facilities Development Impact Fees
for All New Development Within the City of Arroyo Grande. Mayor
Gallagher said the Public Hearing would be continued to the City
council meeting of March 22, 1994.
7.B. PUBLIC HEARING - PROPOSAL FOR THE FOLLOWING: (1) SOURCE
REDUCTION AND RECYCLING ELEMENT (SRRE); (2) HOUSEHOLD HAZARDOUS
WASTE ELEMENT (HHWE); (3 ) DRAFT ENVIRONMENTAL IMPACT REPORT
( EIR) ; (4) JOINT POWERS AGREEMENT (JPA); CITYWIDE: APPLICANT: SAN
LUIS OBISPO COUNCIL OF GOVERNMENTS (LEAD AGENCY); CITY OF ARROYO
GRANDE (RESPONSIBLE AGENCY).
Mr. TerBorch said there is a large volume of documents to
review on this matter and recommended opening the Public Hearing
and either continuing it to the February 22, 1994, meeting or
setting the date for a special meeting on the matter.
council Members discussed the two alternatives.
After being assured that the Public Hearing had been duly
published and all legal requirements met, Mayor Gallagher
declared the Public Hearing open and said all persons would be
heard regarding the matter.
Mr. Devencenzi said the Council would probably want to at
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least discuss the JPA at the next council meeting so that its
input can be taken back to the SLOCOG's March 2, 1994, meeting.
He said the other matters could be postponed, if necessary.
He answered other Council questions.
When no one further came forward to speak, Mayor Gallagher
closed the Public Hearing to the floor.
The Council discussed inviting the Planning Commission to
the meeting to give input. It also talked about taking up all the
documents at one time since they are inter-related. Mayor
Gallagher recommended a special meeting before February 22, 1994,
but Mr. TerBorch said there was not enough time to read all the
documents and hold a meeting before that time. The Planning
Director said by state law there must be two public hearings.
Council Members asked to receive the documents connected with
this item as soon as possible.
It was moved by Burke/Souza, and the motion passed
unanimously to continued the item to the regularly scheduled
Council meeting of February 22, 1994.
Mr. Devencenzi said he would be more than happy to meet with
Council Members to explain any of the four items.
a.A. REPORT BY FINANCE DIRECTOR REGARDING SIX-MONTH REPORT ON
REVENUES AND EXPENDITURES (AS REOUESTED BY CITY COUNCIL ON
JANUARY 25. 1994)
Mr. Bacon referred to his January 12, 1994, six-month (July
- December) report of revenues and expenditures in the General
Fund of the City of Arroyo Grande. He explained the status of
the four accounts into which the General Fund revenues are being
received, (1 ) Current Secured property tax , (2) Sales Tax, ( 3 )
Utility Users Tax and (4) Motor Vehicle License Fees. He said
current secured property tax was on target, while the sales taxes
and motor vehicle license fees both were low. He said nearly all
of the utility Users Taxes will be recovered in the second half
of the fiscal year. He said expenditures were about $60,000
under budget, but efforts to under-spend further by 10 percent of
budget had not been successful and Staff may achieve only 2 and
1/2 percent.
The Finance Director said since he wrote his report on
January 12, 1994, he has determined that underspending and the
utility users tax may eliminate the deficit the city began the
fiscal year with.
Mayor Gallagher said the City has been working diligently to
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get out of a precarious financial situation. He said the City
would have been in dire straits without the utility Users Tax.
Mr. Bacon said the city would have been over $400,000 in debt.
Council Member Souza said the 10 percent cut still may be
necessary, and requested monthly reports on the city's financial
status until the end of the fiscal year.
Mr. TerBorch said he had heard that the State did not intend
to make any further cuts to the cities. He said City equipment
is starting to break down after several years of no replacements,
and that is why it has been difficult to reach the 10 percent
goal of cuts in equipment and services.
Mayor Gallagher invited the public to speak on this issue,
and no one came forward. -
9.A. CHAMBER OF COMMERCE ECONOMIC DEVELOPMENT REPORT: RAY BURNELL
AND TIM OUIGGLE
RAY BURNELL reported to the council on the progress of the
Economic Development Committee. He said an economic task force
made up of City and Chamber of Commerce representatives united
behind a common vision of a balanced community that preserves the
city's unique historical character while creating a self-
sufficient and dynamic economic environment. He said the task
force formed the Economic Development Committee made up of 19
community leaders from government, education, health care,
banking, agriculture and other major sectors. He said there is a
five-point strategy consisting of an economic assessment, finding
ways to help business expand and remain in business, attracting
new business, enhancing the incentives to do business in Arroyo
Grande, and educating the community that responsible economic
development is important. He listed accomplishments of the
committee, as follows:
1. A two hour luncheon program on Customer Service was organized
and conducted.
2. A survey was conducted of residents of the city on economic
vitality issues.
3. A data base of commercial vacancies in Arroyo Grande was
created to be used as an aid in leasing space.
4. City Accomplishments - Reduced business license fees;
clarified use-permit requirements; reduced traffic mitigation
fees; preliminary discussions with county, Caltrans and Council
of Governments to improve Brisco Road interchange at Highway 101;
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exploring alternate routes for Highway 227 around the village,
and budget advisory committee comprised of local business and
community leaders to work with the city in making recommendations
to balance the budget.
5. New commercial enterprises for 1994 - ARCO AM/PM Mini Mart at
Grand and Bennett, new Vons store at Grand and Courtland and new
car wash at Grand and Elm.
6. The City and the Chamber have had discussions with a party
(who wishes to remain anonymous) about developing the 44 acre
parcel around Festival Cinemas.
TIM QUIGGLE discussed the current Economic Development
projects of the committee, as follows:
1. Economic Assessment - Forming quarterly reports based upon
sales tax, business licenses, school district data, property
assessment data, housing sales and workforce survey data.
2. Existing Business Retention & Expansion - Visiting existing
businesses by the Mayor and other EDC representatives to discuss
their needs and plans, updating vacancy survey data and having a
data base at the Chamber of Commerce and city Hall, city
beautification projects such as improving City entrances, and
coordinating efforts with other local business organizations such
as Oak Park Plaza (K-Mart), the Village Improvement Association
and Arroyo Town and Country Square (Payless/Lucky Center). Mr.
3. New Business Attraction - formulating strategy to attract new
businesses, identifying preferred commercial enterprises to
attract business, preparing information packets for new business
relocation inquiries and prospecting for new businesses at local
festivals.
4. Community Improvements - Exploring revenue enhancement options
to aid economic development, studying expanding sphere of
influence and organizing a City Budget Advisory Committee. Mr.
Quiggle said the EDC representatives met with a representative of
the State to discuss block grants for the City. He said the City
should put into the budget funds to match grants and hire a
consultant to write the grants.
5. Community Education and Involvement - Issuing press releases
on EDC progress and future direction, providing updates to
community leaders through presentations to governmental bodies
and service groups and utilizing electronic media to publicize
EDC's progress.
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9.B. POLICY RELATED TO TRAFFIC IMPACT FEES
The Planning Director referred to her February 8, 1994,
Staff Report on policies related to Traffic Impact Fees. She
said the Council had instructed staff to return with a
recommended policy for projects approved under the existing
traffic mitigation program. She listed the staff's
recommendation on each policy. The Council then reached
consensus, as follows:
1. projects approved under the existing traffic mitigation
program, and applicants have finaled their project (i.e.,
recorded a map, pulled a building permit) - Staff recommended
that the applicants should pay the traffic impact mitigation fees
agreed to when their project was approved. Council Members
agreed. ~
2. projects that were approved under the traffic impact
mitigation program, and applicants have not finaled their
project, thus they have not paid the traffic impact mitigation
fee - Staff recommended that the applicants have the option of
submitting an amended application that would require review of
their mitigation measures. Each project would be reviewed on a
case by case basis. Council Member Souza recommended that the
fee be waived, but the other Council Members agreed with staff.
\ 3. projects that were approved under the existing program,
applicants have not finaled their map but include the amended
mitigation measure - staff recommended that since this is a
mitigation measure, it would be handled administratively, and the
applicant would pay the new traffic fee. Council Members agreed
that this is not a policy issue and would be handled
administratively.
4. Since the Resolution establishes the fee, and will not become
effective for 60 days after adoption, staff recommended that the
new fee apply to all new and pending projects. Council Members
agreed.
9.C. REOUEST TO CONNECT TO CITY'S SEWER LINE: TRACT 1724: CASA
TIERRA INVESTMENTS: BYijON GRANT (PROPERTY LOCATED ADJACENT TO
CITY LIMITS ON LO~ BERROS ROAD)
Mayor Gallagher read the February 8, 1994, Staff Report of
the Planning Director who covered the issues of whether or not
the Local Agency Formation Commission would have to approve an
agreement between the city and the home owners~ and the impact on
the makeup of the South San Luis Obispo county Sanitation
District board of directors if Tract 1724 was allowed to connect
to the city's sewer main. Ms. Liberto-Blanck wrote in her report
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that Grover Beach had applied to be a member of the board and, if
it is annexed into the district, the result would be that Arroyo
Grande would go from a 1/3 vote to a 1/5 vote. She wrote that if
properties located within the County such as Tract 1724 can use
the City sewer lines, County representation on the board may
ultimately be eliminated through the de-annexation of the County
from the SSLOCSD, and Arroyo Grande would maintain its 1/3 vote.
RUTH BRACKETT, Fourth District Supervisor and representative
on the SSLOCSD, spoke to the Council and said the proposal to
I allow connection of the tract to the City's sewer line would be
one way to solve the district board representation ratio and
! allow Grover Beach to become a member of the district. She said
if Arroyo Grande would allow connection to its sewer lines of
- home owners in unincorporated areas, the County would have less
of a reason to have representation on the district board.
BYRON GRANT of High Mountain Road, developer of Tract 1724,
asked the City Attorney if the agreement with the City would have
to go before LAFCO. Mr. Lyon said because the tract is within
the SSLOCSD boundaries it would not be necessary. Mayor
Gallagher said at the last board meeting Executive Director Paul
Hood said LAFCO should at least have a cursory review the
agreement.
Council Member Moots expressed concerns about the city's
sewer line capacity, and Mayor Gallagher said the city is using
less than 50 percent of its contract capacity. Council Member
Moots asked about capacity when other tracts want to connect.
Mr. Grant said his tract is the only one within the County's
urban reserve line and the district boundaries.
Mr. TerBorch said all the concerns and questions will be
answered for the Council if it directs Staff to do so. There
were other questions about maintenance of the sewer lines;
construction to city standards; review of the project by the
interim Public Works Director and funding for the review; where
the fees would come from; how the connection would affect the
homes on Tiger Tail and Mesa Drives; setting a precedent for
future connections to City sewer lines, and how much capacity
would come from the 23 homes in Tract 1724.
Council Member Brandy asked Supervisor Brackett if the
County would be willing to give up a vote on the district board,
and she said yes, if developers like Mr. Grant would be allowed
to get service. She said then she would represent on the board
only agricultural interests, and the district could enter into
agreements with them for future service.
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Council Member Brandy recommended that Staff be directed to
work with Mr. Grant based on finding out all the information
asked for, answering all the questions of the Council Members and
establishing appropriate fees. Other Council Members agreed.
9.0. SETTING DATE AND TIME FQR A JOINT MEETING WITH GROVER BEACH
CITY COUNCIL REGARDING POLICE CONSOLIDATION
Mr. TerBorch requested that the Council set dates for public
hearings and presentation of proposals to consolidate Arroyo
Grande and Grover Beach Police Departments. Council Members
chose the dates of March 23 and 31, 1994. The South County
Regional Center and the Grover Beach Community Center will be
locations for the meetings that will begin at 7:30 P.M. Mr.
TerBorch said the Councils will be making decisions on the
consolidation in April, 1994.
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10. WRITTEN COMMUNICATIONS
The Acting city Manager said the material from the
representatives of Rancho Grande would be available in the
Council's mail boxes.
11. ORAL COMMUNICATIONS
Mayor Gallagher referred to recommendations made by city
auditors and asked if the City had complied with them. Mr.
TerBorch replied that the City had complied in part, and
implementing other recommendations is in progress.
12. CLOSED SESSION
None
13. ADJOURNMENT
It was moved by Burke/Souza, and the motion passed
unanimously to adjourn the meeting at 10:00 P.M.
YOR
ATTEST: '11~ a. ~
NANCY A DAVIS, CITY CLERK
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