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HomeMy WebLinkAbout10/17/1978M I N U T E S REGULAR MEETING OF THE CITY COUNCIL CITY OF SAN LUIS OBISPO TUESDAY, OCTOBER 17, 1978 - 7:00 P.M. COUNCIL CHAMBERS, CITY HALL Roll Call Councilmen PRESENT: -Ron Dunin, Jeff Jorgensen, Steve Petterson, Allen Settle, and , Mayor Kenneth•E. Schwartz, ABSENT: None City Staff PRESENT: J.H. Fitzpatrick City Clerk; Lee Walton, Administrative Officer; R.D. Miller, Administrative Officer; George Thacher, City Attorney; Dan Smith, Senior Planner; Glen Matteson, Planning Assistant; Wayne Peterson, City Engineer; Richard Minor, Fire Chief; Jim Stockton, Director of Parks and Recreation; Roger Neuman, Police Chief; D.F. Romero, Director of Public Services B. The City Council considered the appointment of a public member to the Waterways Planning Board, continued from the October 3, 1978 council meeting. Councilman Jorgensen again nominated Mr. Dirk R. Walters to be a member of the Waterways Planning Board. On motion of Councilman Jorgensen, seconded by Councilman Settle, that Dirk R. Walters be appointed to the Waterways Planning Board for a term ending June 30, 1980. Motion carried, all ayes.. Councilman Settle nominated Phillip Ruggles to be a member of the Citizens' Advisory Committee to complete the term of William Flory who had resigned. Councilman Settle stated that Mr. Ruggles had been interviewed by the subcom- mittee for C.A.C. membership and that he had been an alternate and had been attending the meetings with the C.A.C. On motion of Councilman Settle, seconded by Councilman Dunin, that Phillip Ruggles be appointed to the Citizens' Advisory Committee for a one -year term expiring on June 30 „ 1979. :Motion carried. C. At this time, Mayor Schwartz presented a Resolution of Appreciation from the City Council of the City of San Luis Obispo to Donald Hale, expressing the City's gratitude for his over 30 years of long and dedicated service to the City's Fire Department and wishing him well on his contemplated retirement. 1. The City Council held a public hearing on the provisions of Resolution No. 3674, 1978 Series, a resolution of the City Council preliminarily determining that certain trees constitute dangerous obstructions to stream flow in the City of San Luis Obispo and listing eight trees of potential hazards under the provisions of this resolution. The City Clerk presented an affidavit by Pamela Voges that she had personally mailed this first class, return receipt requested a certified copy of resolution and notice of public hearing on September 28, 1978 and..the City Clerk, J.H. Fitzpatrick, presented his certificate that he personally posted each property showing exhibit of Resolution No.. 3674 on October 3, 1978. D.F. Romero, Public Service Director, stated that Item No. 7 on Exhibit A, property posted for Noyes, etal to safety prune a large sycamore along Prefumo Canyon Creek near the end of the freeway drive was assessed to the wrong property owner and that the tree belonged to the Laguna Lake Company who stated to him that they would accept responsibility. George Thacher, City Attorney, submitted for the record the minutes of the Waterways Planning Board recommending that the City Council abate certain trees which were a potential hazard and nuisance in the city drainage system. City Council Minutes October 17, 1978 Page 2 D.F..Romero was then sworn in by the City Clerk as to the testimony he was to give in this public hearing. Mayor Schwartz declared the public hearing open. No. 1 - Property Owner A.L. & D.G. Gilbert was to safety prune a large eucalyptus tree leaning over the creek adjacent to San Luis Obispo Creek behind 1218 Pismo Street, D.F. Romero then presented the nuisance as it existed and which should be trimmed for safety purposes. No. 2 - San Luis Obispo National Bank to remove a ten inch willow laying over Stenner Creek just off Santa Rosa behind 1001 Foothill Boulevard. D.F. Romero presented evidence as to the potential hazard of this problem. No. 3 - D.F. and B.E. Blausey remove or protect an undermined Sycamore in the Old Garden Creek behind 754 Lincoln Way. D.F. Romero presented to the City Council the evidence of the effect this tree would have as a hazard in Old Garden Creek. Mr. Blausey appeared before the City Council and stated that he would do all he could to protect this tree, that he did not wish to remove it, and he hoped the City would cooperate with him. No..4 - M.F. Bowman to remove a large willow clump in San Luis Creek behind 581 Dana Street. D.F. Romero presented evidence as to the potential hazard to the drainage in this creek. No. 5 - Chorro Lodge No. 168, Independent Owner of Oddfellows, to remove a large eucalyptus tree along San Luis Creek behind the cemetery on Elks Lane. D.F. Romero reviewed for the City Council the problem with this tree and its potential hazard to the drainage in this area. No. 6 - Laguna Lake Company to safety prune a large sycamore along Prefumo Creek in the mobile home park. D.F. Romero then presented evidence as to the hazard of this tree. No. 7 - O.R. Moyes, etal, which has now been assumed by the Laguna Lake Company which also consisted of a safety prune to a large sycamore.in Prefumo Creek near the end of Fairway Drive. Mr. Romero presented the evidence as to the potential hazard of this tree. No. 8 - Peram, Inc. to remove small eucalyptus trees along Froom Creek west of Calle Joaquin. D.F. Romero presented evidence as to the hazard that these eucalyptus trees would have on the drainage in this area. He also stated that the property owners of the Peram Corporation stated that they would clear out this hazard. On motion of Councilman Dunin, seconded by.Councilman Settle, the following resolution was.introduced: Resolution No. 3692, 1978 Serie, a resolution of the Council of the City of San Luis Obispo finding that certain trees are public nuisances in that said trees constitute dangerous obstruction to stream flow in the City of San Luis Obispo and ordering the abatement of said obstructions. Passed and adopted on the following roll call vote: AYES: Councilmen Dunin, Jorgensen, Petterson, Settle, and Mayor Schwartz NOES: None ABSENT: None City Council Minutes October 17, 1978 Page 3 Councilman Jorgensen stated that for the record, he wished to state that he supported the overall.removal of the obstructions in-the creek, but he did not feel the tree owned by Chorro Lodge at Elks Lane should be removed. 2. At.this.time the City Council considered the final passage of Ordinance No. 782, Personnel Rules and Regulations. Lee Walton, Administrative Officer, explained to the City Council that at the October 3 meeting the changes had been presented to the Council in detail, that , no changes had been made, and he urged the Council to adopt the.ordinance. Mayor Schwartz asked if anyone in the audience had anything to say about the ordinance. No one appeared before the City Council for or against the proposed ordinance. On motion:of.Councilmin Jorgensen, seconded by Councilman Settle, Ordinance No. 782 was introduced for final passage. Finally passed on the following roll call vote: AYES: Councilmen Jorgensen, Settle, Dunin, Petterson and Mayor Schwartz NOES: None ABSENT: None 3. At this time the City Council considered the forth draft of the proposed bill and agreement for the transfer of the Salinas Dam Project from the"United States Government to the County and also contract between the City and County water district for continued delivery of water to the City of San Luis Obispo. Lee Walton, Administrative Officer, explained that this had been reviewed very carefully in the past and he urged the Council to approve the recommended draft and authorize the City staff to work with the County staff to negotiate the provisions of the recommended contract. On motion of Councilman Dunin, seconded by Councilman Settle, the City Council approved the draft of the proposed bill and agreement for the transfer of the Salinas Dam Project to the County and authorize staff to continue negotiating with the County. Motion passed on the following roll call vote: AYES: Councilmen Dunin, Settle, Jorgensen, Petterson and Mayor Schwartz NOES: None ABSENT: None 4. Report and recommendations from the Mass Transit Committee Meetings of September 28, 1978 and October 4, 1978. Item 1: The Mass Transportation Committee recommends that for a six month trial basis a monthly pass be available to all individuals at a cost of $2.50 per month. This pass would be usable only on the city system and valid only during the hours between 10:00 a.m. and 3:00 p.m., Saturdays, Sundays, and holidays. Item 2: The Mass Transportation Committee hereby.endorses the concept of a regional transportation system in the north coastal area with staffs of involved agencies to work out details of.cost sharing, contracts, scheduling, fares and other operational matters. Item 3: The Mass Transportation Committee hereby recommends approval of both joint powers agreements for the Regional Handicapped System and the North Coast Regional Transit System subject to a detailed review by the staff. Item 4: The Mass Transportation Committee hereby endorses the general objectives (but not necessarily all specific objectives) outlined in the document entitled "Citizens for Improved Transportation" as presented'by Mr. Bearce. Mayor Schwartz opened the meeting to the public. City Council Minutes October 17, 1978 Page 4 Mr. Hank Wollweber, president of the San Luis Obispo Senior - Citizens' Center, spoke in support of the recommendation of-the Mass Transit Committee to reduce fares for seniors, although, he asked that the City Council consider a 9:00 a.m. to 4:00 p.m. time limit rather than the recommended 10:00 a.m. to 3:00 p.m. Mr. Ron Bearce, chairman for the Citizens' for Improved Transportation, appeared before the City.Council for support of the objectives of his committee. He suggested a daily reduced fare rather than a pass. Rose Barger stated she was in support of the Mass Transit Committee recommenda- tion but felt there was an additional need within the city for transportation of handicapped people.and hoped the City Council would require the Grass Roots II serviceman to work with the handicapped on this matter. Mayor Schwartz declared the public hearing.closed. Councilman Petterson stated he supported the recommendations of the Mass Transit Committee with a six month trial basis for the reduced fare passes. He stated that the city subsidizes this transportation system now but would not want free transportation. Councilman Jorgensen agreed that he would support the Mass Transit Committee's recommendation on the reduced pass fare but felt the staff should study the 9:00 a.m. . to 4 :00 p.m. request by the senior citizens to see if it were viable. Councilman Settle stated he would support the Mass Transit Committee with the staff to look into the 9:00 a.m. to 4:00 p.m. request. Councilman Dunin stated he would also .support the Mass Transit Committee's recommendation with a six month trial period and also ask the staff to study the 9:00 a.m. to 4:00 p.m. request to see if it were possible. Mayor Schwartz stated he would support the Mass Transit Committee's recommen- dation for a six month trial basis on fare with a study of the passes sold, use of buses during the time period, etc. On motion of Councilman Settle, seconded by Councilman Jorgensen the recommenda- tion No. 1 of the Mass Transit Committee was accepted. Motion carried on the following roll call vote: AYES: Councilmen Settle, Jorgensen, Dunin, Petterson and Mayor Schwartz NOES: None ABSENT: None On motion of-Councilman Settle,:seconded by Councilman Jorgensen that the City Council accept the recommendation of the Mass Transit Committee, Item No. 2, and endorse the concept of the initiation of a Regional Handicapped System and North Coast Regional Transit System. Motion carried on the following roll call vote: AYES: Councilmen Settle, Jorgensen, Dunin, Petterson and Mayor Schwartz NOES: None ' ABSENT: None On motion of Councilman Settle,-seconded by Councilman.Jorgensen,.the following resolution was introduced: Resolution No. 3703, 1978 Series, a resolution of the City of San Luis Obispo approving joint powers agreements for North Coast Transit-and for Handicapped Transit. (Item No. 3) Passed and adopted on the following roll call vote AYES: Councilmen Settle, Jorgensen, Dunin, Petterson and Mayor Schwartz NOES: None ABSENT: None City Council Minutes October 17, 1978 Page 5 Recommendation No. 4: To approve the general objectives outlined in the Citizens' for Improved Transportation. The City Council ordered the matter received and filed without prejudice. Motion carried on the following roll call vote: AYES: Councilmen Settle, Jorgensen, Dunin, Petterson and Mayor Schwartz NOES: None ABSENT: None CONSENT ITEMS C -1 On motion of Councilman Jorgensen, seconded by Councilman Settle, claims against the city for the month of October, 1978, were approved subject to the approval -of the Administrative Officer. Motion carried. C -2 On motion of Councilman Jorgensen, seconded by Councilman Settle, the minutes of the council meeting of September 5, 1978 was approved as presented. Motion carried. C -3 At this time the City Council considered the recommendations of the Promotional Coordinating Committee for activity grants for the 1978/79 fiscal year. $21,150.00 Reserve $450.00 $450.00 Mr. Ron Bearce, chairman for Citizens' for Improved Transportation,.appeared before the City Council stating that his group had applied for funds to the Promotional Coordinating Committee to support the transportation committee as they.cannot proceed unless they have some public funds to develop their programs. They had beed turned down by the committee and they hoped the City Council would reconsider and give them $175. Sally Punches, chairperson of the Promotional Coordinating Committee, stated that the committee felt that the Citizens' for Improved Transportation was not an activity in the guidelines adopted by the committee for grants and approved by the City Council. 1 Sally Punches then reviewed the recommendations of the committee and the difficult' due to the reduced amount of funds available for grants. The City Council then held.a long discussion on the philosophy of promotional funds granted to various groups on a continuing basis or whether the funds should be used as seed money and also whether cultural uses should be placed in a separate portion of the budget other than the promotional budget. The City Council decided that due to the magnitude of the problem, it might be better to place this on a future agenda for discussion by the City Council. Grant 1. Associated Students, Inc. - Poly Royal $ 900.00 .2. Central Coast Children's Theatre 900.00 3. Civic Ballet 900.00 4. Cuesta Boosters 5. La Fiesta Association 1,350.00 6. Mozart Festival Association 4,500.00 7. Mustang Boosters 450.00 8. Neighborhood Arts 450.00 9. S.L.O..Art Association 2,250.00 10. S.L.O. County Band 1,350.00 11. S.L.O. Symphony Association 4,500.00 12. S.L.O. Youth Symphony 900.00 13. Gold Coast Chorus 900.00 14. S.L.O. Little Theatre 1.800.00 $21,150.00 Reserve $450.00 $450.00 Mr. Ron Bearce, chairman for Citizens' for Improved Transportation,.appeared before the City Council stating that his group had applied for funds to the Promotional Coordinating Committee to support the transportation committee as they.cannot proceed unless they have some public funds to develop their programs. They had beed turned down by the committee and they hoped the City Council would reconsider and give them $175. Sally Punches, chairperson of the Promotional Coordinating Committee, stated that the committee felt that the Citizens' for Improved Transportation was not an activity in the guidelines adopted by the committee for grants and approved by the City Council. 1 Sally Punches then reviewed the recommendations of the committee and the difficult' due to the reduced amount of funds available for grants. The City Council then held.a long discussion on the philosophy of promotional funds granted to various groups on a continuing basis or whether the funds should be used as seed money and also whether cultural uses should be placed in a separate portion of the budget other than the promotional budget. The City Council decided that due to the magnitude of the problem, it might be better to place this on a future agenda for discussion by the City Council. City Council Minutes October 17, 1978 Page 6 On motion of Councilman.Jorgensen, seconded by Councilman-Settle, that the City Council approve the.recommendation of the Promotional Coordinating Committee. Motion carried. C -4 On motion of.Councilman.. Jorgensen, seconded.- by.Councilman Settle, the following resolution was introduced: Resolution No. 3693, a resolution of the Council of the City of San Luis Obispo granting final approval of Parcel Map SLO 77 -27 located at 2650 Augusta Street: Passed and adopted on the.following roll call vote: AYES: Councilmen Jorgensen, Settle, Dunin, Petterson and Mayor Schwartz NOES: None ABSENT:- None C -5 The CIty Council discussed the recommendation of the Planning Commission approving a tentative map to divide one lot into three lots at 1425 Woodside Drive, R -2 zone, Hacienda Hospital, Inc., subdivider. Dan Smith, Senior Planner, presented the recommendations of the Planning Commis- sion which recommends that the City Council-approve the minor subdivision subject to findings and conditions placed thereon by.the Planning Commission. Mayor Schwartz declared the public hearing open. No one appeared before the City Council Mayor Schwartz declared the public hearing closed. Councilman Jorgensen stated that he was concerned over the size of the remaining lots in the subdivision, particularly parcels B and C which are substandard to the city ordinance; and he could not find that this was not a grant of special economic benefit to the property owner. Councilman Petterson stated that he agreed with Councilman Jorgensen's concepts and further, felt that this special grant does effect the health of neighbors in the neighborhood and is a grant of special privilege to this one property owner. Councilman Settle stated he could not support the recommendation of the Planning Commission as he did not feel that the Planning Commission had looked into the matter of a grant of special benefit to one property owner. Councilman Dunin stated he had no comment. Mayor Schwartz stated he could not make the necessary findings of special benefit required due to the size of the lots. On motion'of.Councilman Jorgensen, seconded-by Councilman Settle, that the City Council deny the Planning Commission's recommendation. Motion carried on the following roll call vote:. AYES: Councilmen Jorgensen, Settle, Petterson and Mayor Schwartz NOES: None ABSENT: Councilman Dunin C -6 On motion.of.Councilman Jorgensen,_seconded by Councilman Settle, the following resolution was introduced :.- Resolution-No..3694,'1978 Series, a resolution of the Council of the City of San-Luis Obispo granting approval of tentative minor subdivision'78 -193, located at 3310-and,-3320 Flora Street. Passed and adopted on the following roll call vote: City Council Minutes October 17, 1978 Page 7 AYES:- Councilmen.-Jorgensen, Settle; Dunin.,.Petterson..and Mayor Schwartz NOES: None ABSENT.: None C -7 On motion of Councilman Jorgensen, seconded..by- Councilman Settle, the following resolution was introduced: Resolution No'. 3695,.a resolution of the Council..of the'City of San Luis Obispo increasing the general fund appropria- tions for -the 1978/79 fiscal year and authorizing a transfer of general reserve funds (to provide for emergency repairs to Fire Department vehicle in the amount-of $20,000). Passed and adopted on the following roll call vote: AYES: Councilmen Jorgensen, Settle, Dunin, Petterson and Mayor.Schwartz NOES: None ABSENT: None C -8 On motion of.Councilman Jorgensen, seconded by Mayor Schwartz, the following.resolution was introduced: .Resolution No.-3696, 1978 Series, a resolution of the Council of the City of San Luis Obispo finding and determining that Police Officer Louis J. Schweibert is disabled. Passed and adopted on the following roll call vote: AYES: Councilman Jorgensen, Mayor Schwartz, Councilmen Dunin, Petterson and Settle NOES: None ABSENT: None C -9A Robert Mote, Utilities Engineer, submitted for the council's consider- ation, the first quarter 1978/79 priority rating for the water improvements projects 20,000 quarterly program.. First Priority: Bank of America - Higuera at Santa Rosa Second Priority: Dalessi Building - 999 Monterey Street (Marsh to ?Monterey) Third Priority: Exposition Park - (Woodbridge; water main'to Lawton Street) On motion of.Councilman Jorgensen, seconded by Councilman Settle, the recom- mendation of the Water Utility Engineer was approved. Motion carried. C -9B On motion of Councilman Jorgensen,, seconded_ by Councilman_ Settle, the following resolution was introduced:_ Resolution.No. 3697, 1978 Series, a resolution of the.Council of the City of San Luis Obispo.approving an agreement between the city and Continental Service Company for construction of a water- line for Bank of America development. Passed and adopted on the following roll call vote: AYES: Councilmen Jorgensen, Settle, Dunin, Petterson.and Mayor Schwartz NOES: None ABSENT: None C -10 On motion of..Councilman Jorgensen,.seconded..by Councilman.Settle, the following resolution was introduced: Resolution No ..3698, a resolution of the Council of the City of San Luis Obispo approving an agreement between the Down- town Business Improvement Area and Robert Strong, A.I.P., for parking consultant services. City Council Minutes October 17, 1978 Page 8 Passed and adopted on the following roll call vote: AYES: Councilmen Jorgensen, Settle, Dunin,.Petterson.and Mayor.Schwartz NOES: None ABSENT: None C -11 On motion.of Councilman.Jorgensen,_.seconded by Councilman Settle, the following resolution.was introduced: Resolution No. 3699, 1978 Series, a resolution of the Council of the City of San Luis Obispo authorizing agreement between the Downtown Business Improvement Area and the Pacific Gas and Electric Company regarding the installation of Christmas decorations and authorizing payment for pole modifications necessary to accommodate said decorations. Passed and adopted on the following roll call vote: AYES: Councilman Jorgensen, Settle, Dunin, Petterson and Mayor Schwartz NOES:` None ABSENT: None C -12 On motion of Councilman Jorgensen, seconded by Councilman Settle, the following resolution was introduced: Resolution No. 3700, 1978 Series, a resolution of the City of San Luis Obispo amending Resolution No. 3647 (Salary Resolution) by providing for payment of Police Reserve Officers under certain conditions. Passed and adopted on the following roll call vote: AYES: Councilmen Jorgensen, Settle, Dunin, Petterson and Mayor Schwartz NOES: None ABSENT: None C -13 Communication from Charles Watson submitting his resignation as a member of the H.R.C. On motion.-of Councilman Jorgensen,.seconded by Councilman Settle, the City Clerk was authorized to proceed to advertise for candidates for the Human Relations Commission. Motion carried. C -14 Traffic Engineer's Report for the period July 7, 1978 through September 26, 1978 was ordered received and filed on motion of Councilman Jorgensen, seconded by Councilman Settle. C -15 On motion of Councilman Jorgensen,___seconded by Councilman Settle the claim against the city by Drew Medzyk, 1162 Walnut Street, in the amount of $158.92, for a broken windshield to his car while he was umpiring for a city softball game was denied. Motion carried. BID ITEMS B -1 The City Clerk reported on the following bids received for the "JOHNSON AVENUE WIDENING - EASTERLY SIDE - HIGUERA TO MARSH ", City Plan No. C -01. Engineer's estimate - $21,520.00 Gus Howie, Cement Contractor $18,810.70 1813 Marsha Drive San Luis Obispo, CA Silvaggio Construction $21,674.65 70 Rafael Way San Luis Obispo, CA Conco Engineering Company $22,767.00 Post Office Box 511 San Luis Obispo, CA ..City Council.Minutes October 17,.1978 Page 9 Boyd Construction Company 163 Ramona San Luis. - Obispo, CA - R. Burke Corporation Post Office Box 957 San Luis Obispo, CA Melcher Construction 1415 Smith San Luis Obispo, CA Paso Constructors Route.l,.Box 14 -D Paso Robles, CA $23,455.00 $25,022.00 .$27,960.00 $39,075.00 On motion of Mayor Schwartz, seconded by Councilman Settle, the low bid of Gus Howie, San Luis.Obispo, for $18,810.70.was accepted. Motion carried. B -2 The City Clerk reported on.the following bids received for "STREET RESURFACING PROJECT ", City Plan No. C -09, revised engineer's estimate $310,825.00. Southern Pacific Milling Company 3555 Vineyard Avenue Oxnard, CA 93030 . Madonna Construction Company Post Office Box 910 San Luis Obispo, CA 93406 A.J. Diani Construction, Inc. Post Office Box 636 Santa Maria, CA 93454 Pacific Western Construction 4704 East Carmen Fresno, CA 93721 R. Burke Corporation Post Office Box 957 San. Luis..Obispo,..CA 93406• $223,798.05 $254,460.00 $256,465.00 $284,737.00 $290,509.98 On motion of Mayor Schwartz, seconded by Councilman Settle, that the-low bid of Southern Pacific Milling Company,.Oxnard, California, be accepted. Motion carried.- B -3 The City Clerk reported on the following bids received to "EMPTY AND CLEAN NO..1 SLUDGE DIGESTER_'_', City Plan No. C -11.. Engineer's estimate - $11,865.00. United Liquid Waste, Inc. Post Office Box 7288 Carmel, CA 93921 Boyd Construction Company 163 Ramona San Luis Obispo, CA 93401 $10,950.00 $19,449.00 1 1 George Thacher, City Attorney, stated .that the.low bidder, United - Liquid Waste, Inc., was not licensed by the State of California and might not even be required to because of the type of work that is done, but. unfortunately, the specifications of the city require that all bidders be licensed He stated that he did not feel -at this stage of the program the City Council could waive the advertised specifications and could not award the bid to the.lowest bidder. The City Council could reject all bids, could readvertise for bids, or the council could adopt an emergency resolution authorizing the Administrative Officer to proceed and get the best bid for the City of San Luis Obispo in order to accomplish this emergency work. City Council Minutes October 17, 1978 Page 10 After discussion by the City.Council, it.was.moved by Councilman Jorgensen, seconded by Councilman Settle that the City Council reject all bids under the city plan no. C -11 to EMPTY AND CLEAN-THE NO..1 SLUDGE DIGESTER. ..Motion carried. On motion of.Councilman.Jorgensen, seconded.by.Councilman Settle, the following resolution was introduced: Resolution No. 3702, 1978 Series, a resolution of the Council of the City of San Luis Obispo declaring an urgent necessity to dispense with bidding procedures provided by the City Charter (Sludge Digester Bids). Passed and adopted.on the following roll call vote: AYES: Councilmen Jorgensen, Settle, Dunin, Petterson and Mayor Schwartz NOES: None ABSENT: None At this.time the City Council considered an emergency item from the Community Development. Department recommending that the City Council adopt.a resolution applying to the California Housing Finance Agency to designate the City of San Luis Obispo an eligible mortgage assistance area. Glen Matteson stated that the California Housing Finance Agency was making available mortgage assistance to the moderate income home buyers within areas designated for such assistance. The deadline for applying was October 23, 1978, and the council must authorize the application. He continued that this program works by.having the finance agency issue tax- exempt bonds. Bond sales income is then used to provide home purchases and rehabilitation loans 2% to 3% below the prevailing private interest rate. Loans are made available to "moderate income" purchasers. Borrowers deal with private lenders, who in turn contract with the finance agency. Once ' the city received designation as an eligible area, it is no longer involved in the loan administration. The only role the city would have would be to pubicize the program so that prospective users would know it was available. He concluded by saying the people who would benefit would be a family of four who have an annual income of less than $15,840 per year.. Eligibility would be determined by the finance agency which would solicit the advise of the city on borderline projects. He stated there was no tax money involved in the financing program. The only cost to the city would be staff time in preparing the application, staff time and pubication costs in publicizing the program. Glen Matteson estimated a total cost of about $500 per year. On motion of Councilman Jorgensen, seconded by Councilman Settle, the following resolution was introduced: Resolution No. 3701, 1978 Series, a resolution of the Council of the City of San Luis Obispo applying to the California Housing Finance Agency to designate the City of San Luis Obispo an eligible mortgage assistance area. Passed and adopted on the following roll call vote: AYES: Councilmen Jorgensen, Settle, Dunin, Petterson,.and Mayor Schwartz NOES: None ABSENT: None There being no further business.to.come.before the City Council, Mayor Schwartz adjourned the meeting at 9:00 p.m. to 12:10 p.m. Monday,.October 23, 1978. APPROVED: December 19, 1978 6f� J . Fitzpatrick, City Clerk