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Minutes 1994-04-12 ( .. . , 261 MINUTES REGULAR MEETING OF THE CITY COUNCIL TUESDAY, APRIL 12, 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 City Manager Chris Christiansen delivered the invocation. i I 3. ROLL CALL Present were Mayor Gallagher and Council Members Drew Brandy, Bernard Burke and James Souza. Staff members present were Mr. Christiansen, City Attorney Roger Lyon, Planning Director Doreen Liberto-Blanck, Finance Director David Bacon and City Clerk Nancy Davis. 4. ORAL COMMUNICATIONS CAMINA TRIPODI of 521 East Cherry invited city officials and the public to Earth Day activities that will include a fair and dance on April 24, 1994. JAN HAYES of 848 Via BERROS complained about noise, dust and excess speed of construction trucks working on a County development and using her street for access. The City Manager said he would try to reconcile the problem. Council Member Brandy also said he would like to be~involved in solving the problem. 5. CONSENT AGENDA It was moved by Burke/Souza, and the motion passed unanimously to approve Consent Agenda Items 5.a., 5.b. and S.d. through 5.j., with the recommended courses of action. 5.a. Proclamation, "Month of the Child," April, 1994. Mayor Gallagher presented the proclamation to Colleen Kramer, member of the Community Partners in child Care executive committee. Brenda Barrow, Parks and Recreation Department program supervisor, Robbie Hawthorne and Ryan and Melanie Bush presented "Celebrate Children" ribbons to Council and Staff members. 5.b. March 15, 1994, Joint Meeting of City Council and Planning commission Minutes. Approved. S.d. April 6, 1994, Senior Advisory Commission Minutes. Information. 1 - "'26:2 ,- CITY COUNCIL MINUTES APRIL 12, 1994 5.e. March, 1994, Investment Report. Information. 5.f. First Quarter, 1994, Sales Tax Revenue Report. Information. 5.g. Request to purchase Centrex Telephone System: Police Department: Budgeted Item. Approved. 5.h. request of March of Dimes to Close Bridge Street from Branch Street to Nelson street on Saturday, April 30, 1994, 6:00 A.M. to 3:00 P.M., and Use of the Gazebo Park from 6:00 A.M. to 10:00 A.M. : "Annual March of Dimes Walk-A-Thon." Approved. 5.i. Cancellation of Joint Planning Commission Meeting with County on April 28, 1994 (New Date to be Announced). Information. 5.j. Approval of Parcel Map AG 93-090: 1274 Ash Street: M.I.C.O., Inc. (Kevin Hunstad) Approved. It was moved by Burke/Brandy, and motion passed with Burke, Brandy and Gallagher voting aye, and Souza abstaining, to approve the March 22, 1994, City Council Minutes with corrections. 5.c. March 22, 1994, city Council Minutes. council Member Burke said the Minutes of March 22, 1994, should be corrected to delete the sentence on Page 5, Paragraph 1 reading, "There was consensus that the Council should go ahead with application for a Sphere of Influence change." He said the following two paragraphs should be added to the minutes: "council Member Burke said he wanted to be sure that being the lead agency in applying to LAFCO for a sphere of influence change did not obligate the city to go through with the change if it did not like the land use plan. Mayor Gallagher said the City should be taking an active role in seeing if it can come up with appropriate findings to present to LAFCO for modification of the sphere of influence. He said there seems to be some consensus on the Council for moving in that direction. He said there are some problems to overcome first, but the Frederick family will have the city as a willing partner in approaching LAFCO to amend the sphere of influence." council Member Burke said he was concerned that if the city files an application for a Sphere of Influence, it would be tantamount to approving the annexation. He said that was exactly what he did not want to do. 2 ,., . 263 CITY COUNCIL MINUTES APRIL 12, 1994 Mayor Gallagher said the Frederick family should know that the city has certain issues that have to be reconciled prior to the application for the sphere of influence change. 6. REGISTER OF CHECKS It was moved by Burke/Brandy, and the motion passed unanimously to approve Cash Disbursements in the amount of $548,054.99, as listed in the March 30, 1994, Staff Report of Finance Director Bacon. 7.A. PUBLIC HEARING - TO CONSIDER A TRASH PICKUP RATE INCREASE OF 12.4 PERCENT. OR S.95 PER MONTH FOR RESIDENTIAL USERS AND COMMENSURATE AMOUNTS FOR COMMERCIAL USERS, EFFECTIVE MAY 1. 1994: CITYWIDE Mr. Christiansen said the Garbage Committee, made up of ---- members of the Council, the City Managers and the Finance Directors from Arroyo Grande, Grover Beach and pismo Beach put the South county Sanitation Service on an 11 percent rate of return similar to the rate allowed by the Public utility Commission. He said the rate increase would go directly to the hauler and was not a pass through increase resulting from increased tipping fees at the land fill. Council Member Souza asked how the 11 percent increase was established, and Mr. Christiansen said the formula was in the ordinance adopting the garbage company franchise. Council Member Burke said he would like to see the company's profit and loss statements for the last three years. He said the rate of 12 percent does not mean much if the company is free to raise its expenses. Mr. Christiansen said there is a list of expenses that may not be raised by the company. He said there is a cap on the board of directors' salaries. He said profit and loss statements, workers compensation rates, insurance and purchases also were reviewed. 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. EVELYN CALHOUN TALLMAN of 532 Carol Place objected to the rate increase and said a $.95 increase is too much for residents on fixed incomes. TOM MARTIN, controller for South County Sanitation Service, said the increase was needed for salary and benefits, and that Arroyo Grande has the lowest garbage rates in the County. He said in 1991 the South County cities took five months to examine I 3 I I I I L '26'4 CITY COUNCIL MINUTES APRIL 12, 1994 the company books. He said financial statements were audited and approved by outside accountants. council Members discussed with Mr. Martin the proposed rate . Topics covered were raising the rates incrementally; 1ncrease. bidding on the franchise, which expires in 1996; rate increases in the future, and using a variable rate structure. Mr. Martin said, except for landfill tipping fee increases, the company would not b~ asking for a rate increase for 20 months. Council Member Brandy asked about evaluating the rate increase formula, and Mr. Martin said the company would be willing to sit down anytime to discuss the matter. Mr. Martin said the City of San Luis Obispo had variable rates and explained how the structure works there. There was discussion of whether variable rates would be incentives to recycle. MARIE BURT of 414 Orchard objected to the rate increase for those on fixed incomes. When no one further came forward to speak, Mayor Gallagher closed the hearing to the floor. After extensive discussion, council directed Staff to investigate the following: 1. Financial incentives to recycle 2. Use of purchased trash bags in San Luis Obispo 3. If a litter problem would be created by changing trash pickup rates and procedures 4. operating Statements for the Council to review 5. options available that would save money and encourage recycling 6. Variable rates - how they would be addressed and implemented 7. Adopting the proposed rate increase as a tentative measure 8. Demographics of the citizens of Arroyo Grande It was moved by Burke/Souza, and the motion passed unanimously to continued the agenda item to April 26, 1994. 7.B. PUBLIC HEARING - FOR THE OPERATION OF A TAXICAB SERVICE AND A TAXICAB SUBSIDY PROGRAM FOR SENIOR CITIZENS: CITYWIDE Mr. Christiansen said Yellow Cab of San Luis had requested 4 - , . 265 CITY COUNCIL MINUTES APRIL 12, 1994 that the hearing be continued to April 26, 1994. 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. JAY FR~EMAN and REUBEN TEMPLE, operators of the Five cities Yellow Cab, said they would be speaking at the next agenda item. When no one further came forward to speak, Hayor Gallagher closed the hearing to the floor. It was moved by Burke/Souza, and the motion passed unanimously to continue this agenda item to April 26, 1994. - 7.C. INCREASE IN THE AMOUNT OF INSURANCE REQUIRED OF AN OWNER OR OPERATOR OF A TAXICAB SERVICE IN THE CITY: CITYWIDE Hr. Christiansen said the current amount that is required regarding insurance due to injury or death is $50,000.00. He said it is being proposed to increase it to $500,000.00 for injury of death of one person and $1 million for injury or death of two or more persons in the same accident. He said the $100,000.00 requirement for injury or destruction of property remains the same. In response to council Member Brandy, Mr. Lyon said the City had consulted with its insurance advisors and they suggested the policy limits. He said the City has responsibility to make sure there are adequate insurance limits, since it issues the franchise to the taxi company. Council Member Brandy asked if the increased insurance requirements could cause the rates to go up, and if that would increase the amount the city subsidizes the taxi company to run the senior taxi program. Mr. Christiansen said he was not sure how much the rates might increase. council Member Burke said the increased insurance amounts would protect the citizens' interest if there was an accident. After being assured that the Public Hearing had been duly published and all legal requirements met, Mayor Gallagher opened the hearing to the floor. JIM YACONO of 153 Tally Ho Road said the proposed insurance requirements are lenient, and the Council should not consider whether the contractor will raise rates. He also suggested that the Council make sure the quality of the insurance meets a certain standard and said it should look for a A-9 rating. ! 5 '26'6 CITY COUNCIL MINUTES APRIL 12, 1994 Mr. Freeman and Mr. Temple said their business could not afford to pay the increased insurance premiums without increasing the taxi fares. They said they have only five employees and two taxicabs, and they are not running on any kind of profit margin at all. They said the seniors in the city's subsidy program would probably be getting fewer rides for the money. The city Attorney said the City wants to be sure it has sufficient insurance so the contract can be backed up and the city will not be looked to when there is inadequate insurance covering the taxi company and the injured person starts looking for others to pay medical bills. When no one further came forward to speak, Mayor Gallagher closed the hearing to the floor. Mr. Christiansen read the title of the ordinance. It was j moved by Souza/Brandy, and the motion passed unanimously to waive further reading of the ordinance and introduce it by title only. Mayor Gallagher said that constituted the first reading of the ordinance. 7.D. PUBLIC HEARING - STATE COMMUNITY DEVELOPMENT BLOCK GRANT: (CDBG) Mr. Christiansen referred to the April 12, 1994, Staff Report of the Planning Director, and said it is recommended that the city again compete for state Community Development Block Grant monies in order to purchase approximately 1.5 acres at 163 South Elm Street. He said People's Self Help Housing will do paper work, and the city should know by June, 1994, if it is successful. He said the plan is to construct 17 two or three bedroom apartments for low-income families. He said the city would compete for another grant to receive construction monies. Council Member Burke said the city would receive $25,000.00 in administrative fees for the project. Mayor Gallagher said this would help satisfy the State's fair share housing requirements, and Ms. Liberto-Blanck agreed. She also said this grant is only for purchasing the property and for some off-site improvements, and some of the neighbors of the property had concerns and were in the audience. After being assured that the Public Hearing notice had been duly published and all legal requirements met, Mayor Gallagher opened the hearing to the floor. Fourth District Supervisor RUTH BRACKETT said she represented the South County Coalition for Human Services Needs and was present to support the application for the State 6 267 CITY COUNCIL MINUTES APRIL 12, 1994 Community Development Block Grant. JEANNETTE DUNCAN, executive director of People's Self Help Housing, said the low-density development would cover 1.6 acres of land with oak trees and open space. She said the project would have four or five buildings containing two or three bedroom apartments, a community room and child care room, if possible. She said the People's Self Help Board's style in doing rental housing is to work with the neighbors. She said residents have to have good rental histories, good credit and will be screened carefully. She said there would be an on-site manager and good landscaping and maintenance. She said if the construction grant does not come through, the board does have access to other funds if necessary. '~ Council Member Burke said he looked at a similar People's Self Help Housing project in Santa Maria and was favorably impressed. He said, with reference to the senior housing project in Arroyo Grande, that he did not object to the name of the project but did object to the method used in choosing the name. Ms. Duncan said there was poor communication on that matter and the City would have the right to name the new project. , When no one further came forward to speak, Mayor Gallagher I closed the hearing to the floor. It was moved by Burke/Souza (4-0-0, Burke, Souza, Brandy and Gallagher voting aye) to approve Resolution No. 3022 Approving an Application and Contract Execution for Funding from the General Allocation of the State Community Development Block Grant Program (CDBG) Authorizing the Execution of a Grant Agreement with the State of California for the Purposes of This Grant, and Approving the Waiver of Program Related Traffic Mitigation Fees. 8.A. UPDAfE REPORT ON 1993-94 GENERAL FUND REVENUES AND EXPENDITURES: FINANCE DIRECTOR Finance Director Bacon referred to his staff Report of April 8, 1994, and gave the Council an update on general fund revenues and expenditures. He also referred to his initial memo of January 12, 1994, concerning the first six months activity in 1993-94, and his oral report to the Council on February 8, 1994. Mr. Bacon said early projections to June 30, 1994, continue to look promising, with staff hoping to reach a "zero or better" balance through continuing its under-spending by perhaps three percent of its budgets this fiscal year, and thus eliminating the deficit the city began with in the General Fund. He listed the General Fund Revenues, Expenditures and Subsidy Net transfers to/from other funds through March 31, 1994. He said he would be ! 7 '- . 26:.8 CITY COUNCIL MINUTES APRIL 12, 1994 reporting again in May and expected the figures to show that the ! city is coming out of its approximately $134,000.00 deficit with , which it began the year. i ! I 9.A. APPOINTMENT OF COUNCIL MEMBER BURKE AS CITY'S REPRESENTATIVE ! TO THE SOUTH COUNTY AREA TRANSIT (SCAT) AND THE COUNCIL OF i GOVERNMENTS (COG) ! Mayor Gallagher nominated Council Member Burke to the South ; County Area"' Transi t and the Council of Governments boards, and the Council agreed. 9.B. APPOINTMENT OF COUNCIL MEMBER BRANDY AS CITY'S REPRESENTATIVE TO THE GARBAGE COMMITTEE Mayor Gallagher nominated Council Member Brandy as a representative to the Garbage Committee, and the Council agreed. 9.C. RESOLUTION OPPOSING THE MISLEADING "RENTAL ASSISTANCE" INITIATIVE Mr. Christiansen said the Senior Advisory Commission had recommended the adoption of a resolution opposing the Rental Assistance Initiative, which is being offered by park owners who would eliminate local mobile home rent protection ordinances. Council Member Burke said the initiative has a deceptive name, and would outlaw all existing mobile home ordinances and prevent new ordinances. He said it would take away the rights of home rule. TED HYATT of 800 Glenoak Drive and NORM STEVENS of 249 Longdon Drive spoke against the initiative and in favor of the proposed resolution. On another subject, Mr. Hyatt said Sunrise Mobile Home Park, which has 300 spaces, is going to be sold and he would like to be put on record that the residents want to buy the park and may ask the City for help. It was moved by Burke/Souza (4-0-0, Burke, Souza, Brandy and Gallagher voting aye) to approve Resolution No. 3023 opposing the Misleading "Rental Assistance" Initiative. 9.D. RESOLUTION REOUESTING AUTHORIZATION TO CLOSE CITY STREETS FOR THE 1994 ANNUAL STRAWBERRY FESTIVAL Mr. Christiansen said Police, Fire, Public Works and the Parks and Recreation Department would be working closely with the festival committee to insure that all requirements are met. He read the title of the resolution authorizing the closure of streets for the Strawberry Festival. 8 , '. . 269 CITY COUNCIL MINUTES APRIL 12, 1994 JOHN CLARK, chairman of the festival, said some festival sales tax monies are returned to the city of Arroyo Grande. He said the vendors have to file a statement showing where each dollar comes from, and then one percent comes back to the City. It was moved by Souza/Brandy (4-0-0, Souza, Brandy, Burke and Gallagher voting aye) to approve Resolution No. 3024 Requesting ~uthorization to Close City Streets for the 1994 Annual Strawberry Festival. 9.E. REOUEST BY JOHN ASHBAUGH. PERSPECTIVE PLANNING. REPRESENTING ! THE JAMES ESTATE, FOR CONCEPTUAL D~SCUSSION CONCERNING POSSIBLE ANNEXATION OF THE JAMES ESTATE PROPERTY TO THE CITY OF ARROYO GRANDE , Mr. Christiansen referred to April 6, 1994, letter from John I Ashbaugh, representing property owners who want the James Estate ~ and other properties to be annexed by the City. Mr. Christiansen said the annexation involves approximately 88 acres, and the adjoining property owners wanted to see how the Council feels about annexing the land. He said of the 88 acres, 66 acres are owned by the heirs of the Dr. James Estate. He said the heirs do not wish to develop the land, but to be annexed by the City and then sell the property to someone who may want to develop it. Mr. Ashbaugh said the purpose of the agenda item at this time is so that the property owners may gain a preliminary understanding of the Council's interest in annexation of the property. He said the James family is interested in annexation because the city would gain control over development of the parcel, and the owners would gain the ability to work with an agency they know and trust. He said the property was for sale recently with no prospects of a buyer. He said the goal in bringing the matter to the Council is not to get the Council's commitment to any particular development scheme, but rather to obtain some early feedback as to what type of development, if any, should be considered for the property. He added that the property is now located within the city's Sphere of Influence and Sphere of Services established by the Local Agency Formation Commission. He asked the Council to consider the following: 1. The area is surrounded on three sides by the City limits. 2. The entire area is within the City's watershed, and drains directly either to Canyon Way or to James Way, both of which are in the city. 9 '27"0 CITY COUNCIL MINUTES APRIL 12, 1994 3. Traffic to and from this property would be required to traverse city streets in order to gain ingress and egress from the property. Mr. Ashbaugh referred the Council to a hydrogeologic study of the property by Mr. Tim Cleath. He said Mr. Cleath was in the audience. Mayor Gallagher said the City buildout will be 17,500 people in the year of 2010. He said the premise of the General Plan Update and Land Use Element is that the City has only enough resources to buildout. He asked Mr. Ashbaugh how the city could provide water and sewer services for the area he is proposing. Mr. Ashbaugh said there is water on the property and owners would make offset proposals. Council Members and Mr. Ashbaugh discussed which water basin was under the property, and Mr. Cleath said it was the pismo aquifer and not the Arroyo Grande water basin. Mr. Ashbaugh said the property overlays approximately 10 acre feet of water and a recharging basin would be constructed on site thus enhancing the aquifer. Mr. Cleath said a well was completed there that produced approximately 40 gallon per minute. Council Members said property owners would have to prove that annexation would be beneficial to the citizens of Arroyo Grande and that services could be provided. They said the owners should not have any false hopes and would have to make a solid case to the city. Mr. Ashbaugh said they would come back when they have a good case to make that it would be benefit the City to annex the land. He said he felt it would be in the City's best interest to seek control and jurisdiction over the property. 9.F. COUNCIL DISCUSSION REGARDING SETTING SPECIAL MEETING ON THURSDAY. APRIL 14, 1994. 5:30 P.M.. IN ORDER TO CONSIDER FILLING THE CITY COUNCIL VACANCY Mayor Gallagher said it was the Council's intention to ask the applicants to make presentations and then answer questions from the Council. He said all applicants were aware of that. He said this meeting would be continued to April 14, 1994, at 5:30 P.M. in City Council Chambers to consider filling the City Council vacancy. 10. WRITTEN COMMUNICATIONS None. 10 . '" . 271 " CITY COUNCIL MINUTES APRIL 12, 1994 11. ORAL COMMUNICATIONS None. 12. CLOSED SESSION - PUBLIC EMPLOYEE COMPLAINT (GOVERNMENT CODE SECTION 54957) The city Attorney said the Council would be convening at (10:30 P.M.) to a Closed Session on a Public Employee Complaint (Government. Code section 54957). He said the Council would reconvene to announce any action, but he did not anticipate any action would be taken. ADJOURNMENT The Council reconvened at 11:20 P.M. No action was taken in the Closed Session. The meeting was continued to a Special session at 5:30 P.M. Thursday, April 14, 1994, when a vacancy on ,- the Council will be filled. L ATTEST: 11