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HomeMy WebLinkAbout01/14/1986CITY COUNCIL MINUTES - TUESDAY, JANUARY 14, 1986 - 7:00 P.M. PAGE 2 A -1 B.I.A. ADMINISTRATOR CONTRACT (LANSPERY - 471) Paul Lanspery, Administrative Officer, reviewed the agenda report with the recommendation that Council approve the contract between the City and Dolores Williams as BIA Administrator as recommended. After brief discussion and upon introduction of Dolores (Dodie) Williams by John French, moved by Settle / Dovey (5 -0), to adopt Resolution No. 5869 (1986 Series), approving contract with Dolores Williams as BIA ■ Administrator for period 1/15/86 thorugh 1/15/87 as recommended. A -2 NONPARTISAN GOVERNMENT (VOGES - 322) Roger Picquet, City Attorney, briefly reviewed the agenda report with the recommendation that Council adopt the resolution supporting the Assembly Constitutional Amendment to return to nonpartisan government. After brief discussion, moved by Settle /Rappa (5 -0), to adopt Resolution No. 5870 (1986 Series), supporting ACA 7 regarding nonpartisan government as amended by Councilwoman Dovey. 1. WATER RATES (HETLAND /516 - 60 min.) Council held a public hearing to consider proposed water rate increases and a resolution establishing rates and charges for water service. Bill Hetland, Utilities Manager, gave a report including an overhead presentation regarding the proposed rate structure, cash projections and uniform vs. seasonal rates. Mayor Dunin declared the public hearing open. Maggie Cox, Director of Governmental Affairs for the Chamber of Commerce, stated that as representative for the 1100+ business members, they were opposed to the rate increase as recommended. They felt there were still several inequities needing to be addressed, i.e. effect on carwashes, restaurants, etc. Michael Frucht, 1545 See Canyon Road and restaurant owner, spoke in support of the uniform rates if an increase must be approved. He felt that there was little that most restauranteurs could do to conserve water that they have not already done. The summer months were a high usage period, and they are not in a position to raise their prices to be higher at certain times of the year. James Delmor, President of the Restaurant Association, spoke against any type of an increase; particularly, was unsupportive of the seasonal rate. He felt that the summer months were bad for most and that due to other unprojected costs, such as soaring insurance costs and IRS requirements, the restaurant businesses are already being severely affected this year. Howard Brown, previously with the Horticultural Dept. at Cal Poly, the Tree Committee and Obispo Beautiful, spoke against the seasonal rate increase. He felt that many lawns would become brown if this was adopted. David Hannings, also with the the Horticultural Dept. at Cal Poly, challenged the statement that 20 -40% of the residential users were over watering. He would be opposed to any seasonal rate increase. He felt that they were conserving as much as possible now and that this would severely effect the retired person or those on fixed incomes.- He stated that nurseries would also be hard -hit. Peter DeGroot, Model Linen at 35 South Street, suggested that new construction bear the additional costs for water. He stated his linen was already using 40% less than all other linen companies in the State, therefore providing a strong inequity in the rate structure. Roy Morris, spoke on behalf of the Association for Creekside Mobilehome Park, stating they would be opposed to any seasonal rate increase. He felt that most people were not in a position to provide better water conservation than is currently being done. CITY COUNCIL MINUTES - TUESDAY, JANUARY 14, 1986 - 7:00 P.M. PAGE 3 Charles Long, 145 South Street, stated that all mobilehome parks in the city were on master metering and that Creekside would probably have to reduce their base rent should they go to individual metering. He questioned projected costs and financial statements in the 1985 -86 budget. He was concerned about where hydroelectric income fit into it and after his analysis, did not feel there was any justification for a rate increase. Roy Hanff stated he would be opposed to any rate increase. He also felt that any increase approved should be across the board. He felt the City was in essence subsidizing large developers. Ken Schwartz, 201 Buena Vista, stated he has previously submitted a letter of his concerns to the Council. He added that he did not understand the purpose for why the City was conserving water. He was opposed to the seasonal rate structure. He felt that the Council should develop a policy including capital costs, which should be included in the enterprise fund. If the city used the utility tax, he felt that would in essence be a subsidy. He felt there were two classes of people we were dealing with: 1) those who came in under the rules, and 2) those who are coming in the future. He would like to see increases come incrementally, rather than one large jump. Phil Johnson, 699 Patricia Drive, felt that the Council was really talking about economic vs. conservation. He felt these issues needed to be separated and most of the people had already conserved in as many ways as they can. He would also favor the flat tax rate. LaVerne Schneider, 1356 Marsh, stated she was opposed to the proposed rate increase and the seasonal plan. She would like to see the City look at the Utility Users Tax for purposes of updating the system. She then submitted a financial analysis showing that the monies were available for that purpose and should be used accordingly. She also felt there was inequity of Cal Poly's contribution vs. what the City was (20 vs. 65 cents). Mayor Dunin declared the public hearing closed. Councilman Griffin complimented staff on its report and felt that the Council was partially at fault for having deferred the water rate increase of 1982 until a Master Water Management Plan was in place. He also felt that the Water Capital Replacement Reserves needed to be phased. Moved by Dovey /Griffin, to: 1) adopt Resolution No. 5871 (1986 Series), increasing rates and charges with amendments to include Alternate Section 5 which provides for a uniform rate structure, addition of policy statement proposed by Councilman Griffin, and clarification to Section II regarding delinquent charges; 2) direct staff to respond to concerns and issues raised this evening and incorporate in staff's report accompanying City's draft Water Management Plan & draft EIR (tentatively scheduled for March 1986); and 3) direct staff to respond in writing to Mr. Long's concerns with final analysis. Councilman Settle was concerned that the rate structure did not include the cover for the reservoir and other capital replacement costs. Additionally, there would probably be another rate increase within a very short period of time which the public should be made aware of. He was also concerned how this would effect the mobilehome owners. Councilman Griffin felt that with regard to conservation methods available using the seasonal rate structure, he would still like to see the Water Management Plan look at this policy issue. He felt that the budget objectives clearly included the need for an increase in the operating and capital costs and felt that the motion was clearly consistent with that action. He also felt that a 3% reserve was an inadequate amount and would support a 5% reserve. 9:20 p.m. Mayor Dunin declared a recess. 9:30 p.m. City Council reconvened, all Councilmembers present. CITY COUNCIL MINUTES - TUESDAY, JANUARY 14, 1986 - 7:00 P.M. PAGE 4 Councilwoman Dovey reiterated the need for conservation methods to be included in the Water Management Plan. She would like to see the Budget Subcommittee review the utility rates and look at residential and commercial differences. With regard to public education, she felt it was important to include school -age children. She would also like to see water conservation incentives developed as a positive way to encourage water conservation. Motion carried (4 -1, Settle voting no). C O M M U N I C A T I O N S C -1 S.L.O. COUNTY WATER MASTER PLAN After brief discussion, staff was directed to prepare a formal letter for Council approval on January 21 concerning proposed amendments or suggestions to the County's draft Water Master Plan Update (5 -0). 9:50 p.m. Mayor Dunin adjourned the meeting to closed session to discuss the CAO mid -year review. 1:15 a.m. City Council reconvened in open session, all Councilmembers present. There being no further business to before the City Council, Mayor Dunin adjourned the meeting at 1:1 a.m Pa la Voges, Ci erk APPROVED BY COUNCIL: 4 -15 -86 M I N U T E S REGULAR MEETING OF THE CITY COUNCIL CITY OF SAN LUIS OBISPO TUESDAY, JANUARY 21, 1986 - 7:00 P.M. COUNCIL CHAMBER, CITY HALL, 990 PALM STREET SAN LUIS OBISPO, CALIFORNIA PLEDGE OF ALLEGIANCE ROLL CALL Councilmembers Present: Vice -Mayor GlennaDeane Dovey, Councilmembers Robert Griffin, Penny Rappa, Allen K. Settle and Mayor Dunin Absent: None City Staff: Present: Paul Lanspery, Administrative Officer; Roger Picquet, City Attorney: Pamela Voges, City Clerk; Toby Ross, Community Development Director; Dave Romero, Public Works Director; Steve Henderson, Assistant to the Administrative Officer: Don Englert, Police Chief; Glen Matteson, Associate Planner; Bill Hetland, Utilities Manager C O N S E N T A G E N D A Moved by Settle /Griffin (5 -0; Dunin voting no on C -7), to approve the consent agenda as recommended by the Administrative Officer. The following actions taken as indicated: C -1 COUNCIL MINUTES (VOGES) Council minutes of Monday, November 25, 1985 - 12:10 p.m. and 1:30 p.m.; Monday, December 2, 1985 - 12:10 p.m.; and Tuesday, December 3, 1985 - 7:00 p.m. were approved as amended (5 -0). 1 1 1