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Home My WebLink About06/12/1990J 1 M I N U T E S ADJOURNED REGULAR MEETING OF THE CITY COUNCIL CITY OF SAN LUIS OBISPO TUESDAY, JUNE 12, 1990 - 6:00 P.M. COUNCIL CHAMBER - CITY HALL - 990 PALM STREET SAN LUIS OBISPO, CALIFORNIA ROLL CALL Councilmembers Present: Vice -Mayor Jerry Reiss, Councilmembers Peg Pinard, Penny Rappa, Bill Roalman and Mayor Ron Dunin Absent: None City Staff Present: John Dunn, City Administrative Officer; Jeff Jorgensen, City Attorney; Pam Voges, City Clerk; Arnold Jonas, Community Development Director; Dave Romero, Public Works Director; Hen Hampian, Assistant City Administrative Officer; Jim Gardiner, Police Chief; Bill Statler, Director of Finance; Bill Hetland, Utilities Director 6:00 p.m., Mayor Dunin adjourned the Council to Closed Session to discuss litigation and property acquisition: 1. Litigation - Dahan v. Wintermever (Government Code Section 54956.9) 2. Court Street with Interwest Group 6:45 p.m., City Council adjourned and recessed until 7:00 p.m. 7:00 p.m., City Council reconvened in regular session, all Councilmembers present. PUBLIC COMMENT P.C.1 _ Gary Kunkel, Water. Action Committee, requested that Council agendize Water Proposal Initiative at the next available meeting. After brief discussion and upon general consensus, the request was denied. ----------------------------------------------------------------------------- CONSENT AGENDA Moved by Rappa/Roalman (5 -0) the consent calendar was unanimously approved as recommended by the City Administrative Office. C -1 WHALE ROCK AGENDA (File No. 921) Council considered agenda for the Whale Rock Commission meeting, 6/20/90. This item received and filed. 267 o City Council Minutes Page 2 Tuesday, June 12, 1990 - 7:00 p.m. PUBLIC HEARINGS 1. WATER FUND REVENUE REQUIREMENTS (File No. 516) Council held a public hearing to consider approaches to funding the City's water operating and capital. John Dunn, City Administrative Officer, provided introductory remarks emphasizing the need of the City to provide adequate treatment, storage and distribution facilities as well as its operating and maintenance. He cited increased water production costs, decreased revenues as a result of decreased water usage (representing 146 of the proposed increase), capital improvments to our water system, rehabilitating treatment plant, replacing dilapidated water mains and strengthening the future supply. He particularly emphasized the need to protect the City's General Fund and continue to use the Water Fund as the source for these needs (please see File No. 516 for specific comments). Bill Statler, Director of Finance, reviewed the agenda report with the recommendation that Council take the following actions: A. Adopt the policies outlined in the report which would limit the use of General Fund resources in supporting water system operating and capital needs to specific circumstances and conditions; B. Approve additional water fund revenues in the amount of $1,833,000 from the following sources: direct General Fund subsidy of $150,000 by allocating water utility user tax revenues to the Water Fund; General Fund loan of $866,500; and Water Fund rate increase of $866,500 (27.4$), and; C. Defer $1.02 million in currently approved programs and projects in order to finance the General Fund's contribution to the Water Fund as recommended. Ken Hamvian, Assistant City Administrative Officer, reviewed some of the projects recommended for deferral. Mayor Dunin asked for public comment. John French, 3942 Hollyhock, was opposed to taking the $150,000 out of the Utility Tax for subsidizing the General Fund. Ken Schwartz, 201 Buena Vista, also opposed to borrowing the Utility Tax monies. If the Council wished to delay or defer a project, he suggested the Salinas Project be deferred. Charles Long, 639 Al -Hil Drive, read a letter into the record opposing the rate increase. Laverne Schneider, 1356 Marsh Street, felt the Utility Tax should go toward deferring the water rates. She urged Council to increase Cal Poly and City Cuesta's water rates to stay consistent with City rates. 269 City Council Minutes Tuesday, June 12, 1990 - 7:00 p.m. Brett Cross, 1217 Mariner's Cove, opposed the rate increase. Carol Pierce, 864 Mission, opposed the rate increase. Mayor Dunin declared the public hearing closed. Page 3 After additional discussion, moved by RaoDa /Roalman (3 -2, Councilmembers Pinard and Dunin voting no) to direct staff to come back with a resolution supporting a 59.5% water rate increase with required annual review of water and sewer rates. Motion carried. 8:40 p.m., Mayor Dunin declared a recess; 8:50 p.m., City Council reconvened, all Councilmembers present. 2. SEWER REVENUE REQUIREMENTS (File No. 525) Council held a public hearing to consider authorizing an increase in wastewater rates for all users effective July 1, 1990, and an additional increase of $2.00 per month on each July 1 for the next three years. Bill Betland, Utilities Director, reviewed the agenda report with the recommendation that Council adopt a resolution authorizing an increase in single family residential wastewater rate to $10.50 per month, effective July 1, 1990, and an additional increase of $2.00 per month in each July for the next three years for the corresponding increase in all other accounts. Mayor Dunin declared the public hearing open. Roy Banff, 565 Lawrence Drive, urged that Council review and increase the development fees. Mayor Dunin declared the public hearing closed. After brief discussion moved by Raooa /Roalman (4 -1, Mayor Dunin voting no) to adopt Resolution No. 6823 authorizing an increase in single family residential wastewater rate as recommended. 3. 1990/91 BUDGET (File No. 233) Council considered the 1989 -91 Financial Plan changes. Bill Statler, Director of Finance, No. 233) with the recommendation t expenditure changes to the 1989 -91 1989 -90, and $702,600 for 1990 -91; 1989 -90 Operating Budget until the Council. reviewed the agenda report (please see File hat Council - a) by motion, approve Financial Plan in the amount of $44,000 for and b) adopt a resolution extending the 1990 -91 Budget is adopted by the City Councilwoman RBDDa asked the Council to think hard about where the City's future revenue sources are to come from. She felt that there was a real opportunity with the auto agencies and keeping them in San Luis Obispo. 270 City Council Minutes Page 4 Tuesday, June 12, 1990 - 7:00 p.m. After brief discussion, moved by Roalman /Reiss (5 -0) to approve the staff's recommendations to approve the expenditure changes and adopt Resolution No. 6825 extending the 1989 -90 Operating Budget as recommended. 4. GROUNDWATER WELLS (File No. 517) Council considered groundwater well issues including: 1) City purchase of water from private wells; 2) development credits; and 3) an interim moratorium on well drilling within the city. Bill Hetland, Utilities Director, reviewed the agenda report with the recommendation that Council concur with the following three points: 1) The City continue to purchase water from private well owners to temporarily supplement supplies during the drought; terms of the purchase would be negotiated by staff and subject to Council or CAO approval; the Utilities Director would recommend use of those sources_ which can feasibly be connected with, and used by, the city water system. 2) The City not approve private wells as a basis for development of new projects (exemption from needing a water allocation), at least until the results of the pending groundwater yield study are available. 3) After consultation with a water rights attorney, staff draft an interim moratorium on well drilling within the city, pending the results of the groundwater yield study, or if well drilling is to be allowed, restricting it to locations and uses which will not deplete public groundwater supplies. Councilwoman Pinard urged that staff be directed to look at the county regarding their issuance of permits adjacent to the City. Vic Montgomery, 3026 South Higuera, representing Hilltop Development, urged against Item No. 2, as to not approving private wells as a basis for development of new projects. He felt this was in violation of already adopted Land Use Element provisions. Bill Walters, representing S & L Land Company, also spoke in opposition to option No. 2. After brief discussion, moved by Raooa /Roalman (4 -1, Mayor Dunin voting no) to concur with staff recommendations Nos. 1, 2 and 3, with an amendment to No. 3, to request the County to defer issuance of well drilling permits adjacent to the City. Motion carried. ---------------------------------------------- --------- -- ------ -------- - - - - -- Comm. 1 ELECTION CAMPAIGN REGULATIONS SUBCOMMITTEE (File No. 324) Upon general consensus (5 -0), Councilwoman Rap pa and Mayor Dunin were appointed as Council Subcommittee to the Campaign Regulations Committee as recommended by staff. 271 City Council Minutes Page 5 ' Tuesday, June 12, 1990 - 7:00 p.m. Comm. 2 AFFORDABLE HOUSING (File No. 427) Council considered a request Councilwoman Rappa that staff prepare an analysis of Marvin Sibner's affordable housing concept. After brief discussion and upon general consensus (3 -2) staff directed to examine the concept of ground leases for existing City properties for affordable housing as a part of the upcoming Land Use Element amendments. 9:50 p.m., there being no further business to come befor the City Council; Mayor Dunin adjourned the meeting to Monday, June 18, 1 90 t 7s00 p.m. APPROVED BY COUNCIL: 7/17/90 PV:nlo P Voges, C y Clerk ------------------------------------------------ ----------- -- ---- -- ---- -- ---- M I N U T E S ADJOURNED REGULAR MEETING OF THE CITY COUNCIL CITY OF SAN LUIS OBISPO MONDAY, JUNE 18, 1990 - 7:00 P.M. COUNCIL CHAMBER - CITY HALL - 990 PALM STREET SAN LUIS OBISPO, CALIFORNIA IROLL CALL Councilmembers Present: Vice -Mayor Jerry Reiss, Councilmembers Peg Pinard, Penny Rappa, Bill Roalman and Mayor Ron Dunin Absent: None City Staff Present: John Dunn, City Administrative Officer; Jeff Jorgensen, City Attorney; Rim Condon, Assistant City Clerk; Arnold Jonas, Community Development Director; Ken Hampian, Assistant CAO, Bill Statler, Director of Finance; Dave Elliott, Public Works Administrative Analyst; Deb Hossli, Administrative Analyst ------------------------------------------------- -------------- ------- - - - - -- PUBLIC COMMENT P.C.1. - Gary Kunkel, 571 Cuesta Drive, expressed concern over the effects of the drought on City recreation facilities and urged against the toilet rebate program. ----------------------------------------------------------------------------- ADD ON 1. SOLID WASTE TASK FORCE (Rappa) Councilwoman Rappa requested input from her Council colleagues regarding the