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Minutes 1993-08-24 . 158 , -- MINUTES REGULAR MEETING OF THE CITY COUNCIL TUESDAY, AUGUST 24, 1993 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. Robert Banker of Open Door Church, Ceeano, delivered the invocation. i I I 3. ROLL CALL) , Present were'Mayor Gallagher and council Members Drew Brandy, Bernard Burke and James Souza. Absent was Council Member Gene Moots. staff Members present were city Manager Chris Christiansen, _, ci ty Attorney Roger Lyon, City Clerk Nancy Davis and Current Planner Scott spierling. 4. ORAL COMMUNICATIONS HARlE CATTOIR of 195 orchid Lane said that the patient rates charged at Arroyo Grande Community Hospital are too high and do not compare favorably with rp~~s charged by Santa Barbara hospitals. Mayor Gallagher said Ci~'i Staff would contact the Hospital Administrator about her comments and reply by letter. 5. CONSENT AGEND~ It was moved by Burke/Souza, and the motion passed unanimously to approve consent Agenda items 5.a. through 5.f., with the recommended courses of action. 5.a. July 21, 1993, city council Minutes. Approved. S.b. August 10, 1993, City council Minutes. Approved. 5.c. Liability claim, Soc Pena. Claim rejected. S.d. Second Quarter, 1993, Departmental Monthly Reports. Information. S.e. Approval of Work required for Parcel Map AG 89-164, 852 Willow Lane, caston. Approved. 5.f. Approval for hiring Crawford, Multari and starr to do an AB 1600 Fee Study. 6. REGISTER OF CHECKS It was moved by Burke/Souza, and the motion passed unanimously to approve Cash Disbursements in the amount of $724,113.81, as listed in the July 22, 1993, Staff Report of Finance Director David Bacon. II ~ 7.A. CONTINUATION OF PUBLIC HEARING - APPEAL OF PLANNING COMMISSION "":- APPROVAL OF A NEGATIVE DECLARATION WITH MITIGATION MEASURES. I CONDITIONAL USB PERMIT CASB 92-504. LOT LINE ADJUSTMENT CAqB 92- - 506. VARIANCB CASE 92-170. PLANNBD SIGN PROGRAM CASE 92-107. AND VARI,...CB CASE 93-174' LOCATED AT THE CORNER OF BARNBTT STRB.,- AND GRAND AVENUE' ARCO PRODUCTS Mayor Gallagher said the applicant had requested a continuance of this agenda item to September 14, 1993. After being assured that the PUblic Hearing had been duly published and all legal requirements met, Mayor Gallagher declared the Public Hearing open and Baid all persons would be heard regarding the matter. When no one came forward to speak, Mayor Gallagher closed the hearing to the floor. 1 > . . ~.. -- 1 5 9 CITY COUNCIL MINUTES AUGUST 24, 1993 It was moved by Brandy/Souza, and the motion passed unanimously to continue the hearing to September 14, 1993, at the request of the applicant. 7.B. PUBLIC HEARING - VARIANCE CASE NO. 93-177 AND E~TENSIQN OF TIME - CONDITIONAL USE PERMIT NO. 89-459: 1220 FARROLL AVENUE: COASTAL CHRISTIAN SCHOOL Mr. Christiansen said the Planning commission had recommended approval of the Resolution granting the variance. 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. It was moved by Burke/Souza (4-0-1, Burke, Souza, Brandy and Gallagher voting aye, Moots absent) to approve Resolution No. 3000 Granting a Variance, Case No. 93-177, Applied for by Coastal Christian School at 1220 Farroll Avenue, for a Variance from the Requirement That a Time Extension be Filed 30 days prior to Expiration of a Permit or Approval and from the Limit on Length and Number of Time Extensions Allowed by the Development Code. , 7.C. CONTINUATION OF PUBLIC HEARING - UTILITY USERS TAX OF FIVE , PERCENT (5') AND AN INCREASE IN THB RATE OF THE TRANSIENT OCCUPANCY TAX FROM SIX PERCENT (6" TO TEN PE~ENT (10'): CI~YWIDE. Mayor Gallagher referred to his August 20, 1993, memorandum regarding the BUdget Task Force Committee's Recommendations. He thanked the Task Force for its efforts and hard work. He reviewed and made commentfl on the Task Force' B recommendations. He said the City is working with the local Chamber of Commerce striving toward new economic development on commercial lots available in the City. He said a neW AM-PM ARCO mini-market is in the process of developing, as i8 Vons Market. He said economic trends indicate that retail sales are still down in Arroyo Grande by 4.8 percent, but the housing vacancy rate is down below 5 percent and residential building permits are up 83.3 percent from this time last year. He sald the value of Arroyo Grande building permits is up 66.6 percent, whioh represents about $4.5 million. He said commercial building permits are still down and retail value of homes has dropped about 10 percent. He said some economic progress is being made in the city, but, along with the state, economic hard times are being experienced. council Member Souza ~aid that a lot of different pieces will be needed to get through the budget crisis. He suggested that there be a ten percent reduction in service and supply expenditures and operating equipment expenditures, saving the city about $140,000. He said the reductions could be looked at across the board and left it up to the city Staff to make the adjustments. 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 th~ matter. ERNEST SARINA of 435 Le Point Street spoke against the proposed new and increased taxes. He also said the park in Rancho Grande is not needed. BOB CARR of 836 011 ve street said the proposed. taxes are necessary to provide the services needed by the oitizens. He said the Council should make a commitment to reduce the taxes when the City is healthy again, and deal more strongly with our legislators in Saoramento. He said the cities should get some kind of 2 , 160 ,w -- CITY COUNCIL MINUTES AUGUST 24, 1993 assurance from Sacramento that taxes raised locally are going to remain here for Us to use locally. NICK PATEL of 611 El Camino Real spoke about the Transient Occupancy Tax. He said it should be in writing that when times get better, the tax shoUld be lowered. He also said the jump from six to ten percent to too big and there should be a compromise. MRS. CATTOIR of 195 Orchid Lane spoke about the Cost Recovery section of the Budget Task Force Report. She referred to Building Safety Plan Checks, certificate of Occupancy and Inspections done outside of normal working hours, and said the public is already paying for these services under the Building Permit Fees. She also said things like dance classes for seniors could be eliminated from the recreation program. HAROLD HUWALDT of 231 Le Cresta said he appreciates the - standard of living and the services he receives in Arroyo Grande. He praised the Police, Fire, Parks and other City departments, and said City employees should not be penalized. He said possible costs per family caused by the proposed taxes would be only $10 per month. EARL LITTLETON of 217 Short street asked the Council what percentage of the Arroyo Grande property taxes the city receives. The Mayor said it is only 20 percent and 80 percent goes to schools, the County and special districts. Mr. Littleton said he had no feelings about the proposed taxes except that there should be sunset clauses included. When no ohe further came forward to speak, Mayor Gallagher closed the Public Hearing to the floor. Council Member Burke said he was strongly in favor of sunset clauses in both the new Utility Users Tax and the increased Transient OocupancyTax. He said both of the ordinances concerning the new tax and the tax increase should contain the expiration date i of June 30, 1995. He said that would give the city time to study the effects of the tax on the individuals and the busin~sses. He said that also would give time to seek alternatives. He moved that both ordinances contain a sunset clause that would terminate June 30, 1995. Mayor Gallagher requested that Council Member Burke's motion be held back until other council Members spoke. He agreed to do so. Council Member Souza said even with the taxes there would be a budget shortfall. He said the Budget Task Force had recommended cuts in personnel costs, but he could not support that at this time. He said employees should be a part of decisions to cut either benefits or salary. He reiterated his suggestion that there be an across-the-board 10 percent reduction in services and supplies and operating equipment, which would save the City about $140,000. He said the reduction should be left up to the departments to work out. council Member Brandy discussed the possibility of furlough days, but said it would be hard to work out with Police and Fire Departments' special schedules. He said, however, that at contract time the Council would probably have to consider, in conjunction with the employees, salaries and furlough days. He said cost recovery programs should be studied by the city. He said health and retirements benefits should be studied so that the city gets the best deal for its money. He said he agreed with the ten percent cut suggested by council Member Souza, the five percent Utility Users Tax, the increase in Transient Occupancy Tax to ten 3 . . ~ 161 '. CITY COUNCIL MINUTES AUGUST 24, 1993 percent, and the sunset clauses expiring June 30, 1995. He said contingency funds need to be set up. Mayor Gallagher spoke about Senate Bill 1234 called the "Drop Dead Bill," which would impact the City of Arroyo Grande by $3 million. He said the bill would take 70 percent of the sales tax, all licensing taxes and all property taxes. He said the City needs to tell Sacramento thi$ is not tolerable. He said Arroyo Grande is our home town, and we need to be responsible and support our own community and services. He said we cannot attract new business if we let the City's infrastructure decay and deteriorate. He reiterated his commitment to back out of the utility Users Tax when the city has more revenues. He supported the ten percent cut in maintenance and s~pplies and the sunset clause with the cutoff date of June 30, 1995. Council Member Burke referred to his proposed motion concerning the sunset clauses in the tax ordinances. It was moved by Burke/Souza, and the motion passed unanimously to include in the proposed tax ordinances sunset clauses expiring June 30, 1995. City Attorney Lyon said that a new Section 3-3.622 should be ~'..' added to the utility Users Ordinance, reading as follows! "This ordinance shall expire on June 30, 1995, unless it is further extended by another ordinance adopted by the City Council." city Attorney Lyon said that a sentence should be added to Section 2 of the Transient Occupancy Tax Ordinance, reading as follows: "This ordinance amendment increasing the Transient Occupancy Tax from six to ten percent shall expire on June 30, 1995, unless it is further extended by another ordinance adopted by the City council." The City Attorney said that when the Transient occupancy Tax Ordinance expires, the tax amount should not go back to zero, but to six percent. Mr. Christiansen read the title of the util i ty Users Tax Ordinance, "An Ordinance of the City of Arroyo Grande Amending Chapter 3 of Title 3 of the Arroyo Grande Municipal Code by Adding Thereto Artiole 6 Establishing a Utility Users Tax." It was moved by Souza/Burke to dispense with further reading of the balance of the ordinance, and the motion passed unanimously. . It was moved by Souza/Burke (4-0-1, Souza, Burke, Brandy and Gallagher voting aye, Moots absent) to declare this the first reading of the ordinance. Mr. Christiansen read the title of the Transient Occupancy Tax Ordinance, "An Ordinance of the City of Arroyo Grande Amending Title 3, Chapter 3, Article 3 of the Arroyo Grande Municipal Code '~ Relating to Transient Occupancy Tax." It was moved by Burke/Souza to dispense with further reading of the..balance of the ordinance, and the motion passed unanimously. It was moved by Souza/Brandy (4-0-1, Souza, Brandy, Burke and Gallagher voting aye, Moots absent) to declare this the first reading of the ordinance. The Council directed Staff to implement the ten percent across-the-board reduotion in service and supply expenditures and operating equipment expenditures. 4 .._-~-------. " '---.__._._...._~..-._----,~~- . 162 - '- . . CITY COUNCIL MINUTES AUGUST 24, 1993 8. WRITTEN COMMUNICATIONS None. 9. ORAL COMJ(JJNICATIONS i None. 10. C~SED SESSION On the unan~mously approved motion of Burke/Souza, the council adjourned at 8:50 P.M. to a Closed Session on Potential Litigation pursuant to Government Code section 54956.9 (b)(l), and Pending Litigation, Coker Ellsworth and viok Pace Construction Co. vs. city of Arroyo Grande, San Luis Obispo Superior Court Case Nos. 68139 and 60060. on ATTEST: ~ a. ~ NANCY A. AVIS, CITY CLERK , i 5 -~--,,,~,,,,-,~-"- _...._..._.~------~- --"--~'-'