HomeMy WebLinkAbout06/14/2011MINUTES
SPECIAL MEETING OF THE CITY COUNCIL
CITY OF SAN LUIS OBISPO
TUESDAY, JUNE 14, 2011 - 7:00 P.M.
COUNCIL CHAMBER, 990 PALM STREET
SAN LUIS OBISPO, CALIFORNIA
ROLL CALL:
Council Members
Present: Council Members Dan Carpenter, Andrew Carter and Kathy Smith, Vice
Mayor John Ashbaugh, and Mayor Jan Marx
City Staff
Present: Katie Lichtig, City Manager, Christine Dietrick, City Attorney, Michael
Codron, Assistant City Manager, and Elaina Cano, City Clerk, were
present at Roll Call. Other staff members presented reports or responded
to questions as indicated in the minutes.
PRESENTATION
Mayor Marx presented a proclamation to Marion Kay in honor of Flag Day.
Joe Carotenuti, San Luis Obispo, gave a brief presentation regarding the history of the
City's flag.
PUBLIC HEARINGS
1. 2011 WATER FUND REVIEW AND 2011-13-WATER RATE ADOPTION.
City Manager Lichtig discussed the process that Would be followed during this meeting.
Director. Bradley provided a broad
overview of the enterprise funds.
Utilities Director Mattingly introduced this item, following Which Water-Division Manager
Henderson and Senior Administrative Analyst Bishop presented the agenda report and
responded to Council questions.
Mayor Marx opened the public hearing.
Leslie Halls,-San Luis Obispo, spoke in opposition to the proposed rate increases and of
her concerns with the staffing levels in the Utilities Department.
Steve Barasch; San Luis Obispo, spoke about his concerns regarding the proposed water
rates and the disincentives for rate payers.
City Council Minutes
June 14, 2011
Page 2
Willow Walking Turtle, San Luis Obispo, submitted a speaker card; however, was not
present when called.
Matt Kokkonen, suggested having the same consideration for business as residential
water users and stated his concerns regarding staffing costs.
Jody Frey, San.Luis Obispo, spoke about her concerns regarding the proposed water rate
increases for low income citizens.
Richard Kranzdorf, San Luis Obispo, spoke about his concerns regarding the proposed
water rate increases and suggested Council take more time to review all of the possible
implications.
Steve Delmartini, San Luis Obispo, spoke about his concerns regarding the average
customer monthly water bill and. the lack of incentives to use more water.
Bill Wilson; San Luis Obispo, spoke about his concerns regarding the proposed water
rate increases.
Paul Rys,_San Luis Obispo, spoke about his concerns regarding the Prop. 218 process
and referred to a letter and list (on file with the original agenda packet) of citizens against
the proposed water rate increases.
Mayor Marx closed the public hearing.
City Clerk Cano reported that there were 255 written water rate protest letters received
at the commencement of the public hearing and of those 214 were compliant.
Council recessed at 9:15 p.m. and reconvened at 9:25 p.m. with all members present.
Council Member Carpenter stated that he would like to research additional agencies
that could use the City's water when there is an excess for revenue purposes. Mr.
Carpenter spoke in support of base rate fee and opposition to the proposed rate
Council Member Carter spoke in support of moving toward a base and incremental
water rate, suggested a line item budget for enterprise funds and a study of a 10 year
trend with the line item to evaluate the cost drivers from the past and the future.
Council Member Smith spoke of her concerns regarding the projection of the rate
increases and her opposition to the proposed rate increases. Ms. Smith stated she too
is interested in learning more about base rates.
ACTION: Moved by Ashbaugh /Carter to review and accept the 2011 annual water fund
financial review; motion carried 4:1 (Smith opposed).
City Council Minutes
June 14, 2011
Page 3
ACTION: Moved by Ashbaugh /Carter to approve the amended Capital Improvement
Plan for 2010 -11, which defers $1.5 million for the Utilities Telemetry System Upgrade
construction phase from 2010 -11 to 2013 -14 based on the revised capital plan program;
motion carried 5:0..
ACTION: Moved by Carter /Ashbaugh to adopt Resolution No..10271 (201 -1 Series)
increasing water service charges by ten percent (10 %) effective July 1, 2011, and nine
percent (0 %) effective July 1, 2012, provided there is not a majority protest against such
increases; motion carried 3:2 (Carpenter /Smith opposed).
ACTION: Moved by Carter /Ashbaugh to conceptually approve the Water Fund budget
for 2011 -13, with final action on June 21, 2011, with adoption of the 2011 -13 Financial
Plan; motion carried 3:2 (Carpenter /Smith opposed).
ACTION: Council gave direction to staff to return with a report outlining the rate
structure options, cost of conducting analysis and time frame in which to complete
analysis.
Utilities Director Mattingly recommended incorporating such a report into the Major City.
Goal process. The majority of Council concurred.with.Ms. Mattingly's recommendation.
City Manager Lichtig explained -that after the current budget process, staff will do a
comprehensive review of the budget process.
2. 2011 SEWER FUND REVIEW AND 2011 -13 SEWER RATE ADOPTION.
Utilities Director Mattingly introduced this item, following which Senior Administrative
Analyst Bishop, and Wastewater. Division Manager Hix presented the agenda report and
responded to Council questions.
Mayor Marx opened the public hearing.
Jody Frey, San Luis. Obispo, spoke about her concerns regarding the proposed sewer
rates for low income citizens..
Paul Rys, San Luis Obispo, requested Council agendize for a future meeting, a
discussion regarding the water and sewer charges for non - residential properties and
spoke of his concern regarding infiltration.
Mayor Marx closed the public hearing.
City Clerk Cano reported that there were 210 written sewer rate protest letters received
at the commencement of the public hearing and one submitted during the Council
meeting.
City Council Minutes
June 14, 2011
Page 4
Council Member Carpenter spoke of his concerns regarding the Utilities Department
staffing.
Council Member Smith concurred with Council Member Carpenter and suggested
looking at alternative ways to cut costs.
ACTION: Moved by Ashbaugh /Carter to: 1) Review and accept the 2011 annual sewer
fund financial review; 2) Adopt Resolution No. 10272.(2011 Series) increasing sewer
service charges by seven percent (1 6%) effective July 1, 2011, and six percent (6 %)
effective July 1, 2012, provided there is not a majority protest against such increases;
and 3) Conceptually approve the Sewer Fund budget for 2011 -13, with final action on
June 21, 2011, with adoption of -the 2011 -13 Financial Plan; motion carried 3 :2,
Carpenter /Smith opposed.
By consensus, Council agreed to continue the meeting beyond 11:00 p.m.
2. TRANSIT ENTERPRISE .FUND REVIEW 2011.
Director of Public Works Walter introduced this item, following which Deputy Director of
Public Works Bochum and Transit Manager Webs_ t_er presented the agenda report and
responded to questions.
Mayor Marx opened the public hearing.
Steve Barasch, San Luis Obispo, submitted a speaker card; however was not present.
Mayor Marx closed the public hearing.
Council Member Carpenter spoke of his concern with the parking funds for the Downtown
Access Pass to support the transit funds $20,000.'
ACTION: Moved by Ashbaugh /Smith to: Review and accept the 2010 -11 Transit Fund
analysis; Conceptually approve the Transit Enterprise Fund budget of 2011 -12, with
final action on June 21, 2011, with the adoption of the 2011 -13 Financial plan; Approve
$20,000 annually in revenues for the Downtown Access Pass (formerly the Gold Pass);
motion carried 3:2 (Carpenter /Carter opposed).
Council Member Carter stated his opposition to the motion was due to Item 3 in the
recommendation and stated that the Downtown Access Pass should not be free.
4. 2011 PARKING FUND REVIEW.
Director of Public Works Walter introduced this item, following which Parking Services
Manager Horch presented the agenda report and responded to questions.
City Council Minutes
June 14, 2011
Page 5
Mayor Marx opened the public hearing.
Steve Barasch, San Luis Obispo, submitted a speaker card; however was not present.
Mike Spankler, commended Council for the Enterprise Funds and spoke about his
concerns regarding the perception of the use of the Enterprise Fund to support the
General Fund.
Jody Frey, San Luis Obispo, spoke in opposition to funding the Palm-Ni porno garage.
Mayor Marx closed the public hearing.
Public Works Deputy Director Bochum responded to public comments and referred to a
"Red File" submitted to Council and on file in the City Clerk's office. .
Council Member Carter spoke in opposition to increasing the 10 -Hour Residential
Permit from $5.00 to $120.00, the Downtown Access Pass remaining free, and the
funding for the Downtown Champion position.
Council Member Carpenter spoke in opposition to the funding of the Downtown Access
Pass, the proposed. parking violation fines and suggested researching possible
nighttime parking fees.
Moved by Ashbaugh /Marx to conceptually approve the Parking Enterprise Fund budget
of 2011 -12, with final action on June 21, 2011, with the adoption of the 2011 -13
Financial Plan; motion failed 2:3; Carpenter /Carter /Smith opposed.
Council Member Smith stated her concerns about the community's perception regarding
the General Fund and the Enterprise Funds.
ACTION: Council reviewed and discussed the 2011 annual Parking Fund Review.
ACTION: Moved by Carter /Smith to conceptually approve the Parking Enterprise Fund
budget of 2011 -12 as modified to charge the General Fund for the 20% cost of the
Downtown Champion position and approve that the Parking Fund would subsidize 50%
of the cost of the Downtown Access Pass; 3:2, Ashbaugh /Carpenter opposed.
ACTION: Moved by Carter /Ashbaugh to adopt Resolution No. 10273 (2011 Series)
authorizing charging in City parking structures from 1 PM to 6 PM on Sundays and
Resolution No. 10274 (2011 Series) increasing parking fines and permit fees as
modified to exclude the proposed rate increase to the residential 10 hour parking
permits; 4:1, Carpenter opposed.
There being no further business to come before the City Council, Mayor Marx adjourned
the meeting at 12:40 a.m.
City Council Minutes
June 14, 2011
Page 6
Elaina Cano, CMC
City Clerk
APPROVED BY COUNCIL: 09/06/11
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