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HomeMy WebLinkAbout05/27/1997City Council Meeting Tuesday, May 27, 1997 - 7:00 p.m. Page 2 Council held a public hearing to review and discuss the 1997 annual water fund report. ' Water Division Manager Henderson reviewed steps toward the major City goal of Long Term Water Supply Development. He outlined proposed budget reductions and savings in the water fund and summarized significant operating program changes. He outlined the Capital Improvement projects, which will be funded by the water fund. Council Members agreed that the preference would be to move up the design of new electric motors for Whale Rock. Mayor Settle stated that he would present the idea to the Whale Rock Commission. Utilities Director Moss presented the water rate analysis, reviewing the assumptions used in projecting the costs and rates for water over the next five years. He clarified that approval of the budget does not mean that the City is obligated to accept 25% more water from the Nacimiento project. By concurrence, Council directed staff to prepare a report regarding the Downtown Sprinkler Lateral and a report regarding feedback from the public outreach program on water conservation. Utilities Director Moss reviewed the proposed rate increases over the next five years and the development fees, explaining that fees are set based on the 1% growth rate policy set by the General Plan. He reviewed the policy of retaining a 20% fund balance. Council discussion centered around the rate increases as they relate to the existing fund balance. Staff explained that the rate increase program is designed to meet revenue requirements to fund operating costs. Mayor Settle opened the public hearing. Pat Veesart . SLO, stated that water should not be used to mandate growth, and stated concerns that the possible 25% step up costs for Nacimiento could lead to urban sprawl. He asked Council to give direction to staff not to become a water broker. He also spoke of concerns about the projected rise in water use as it relates to maintaining rates. Utilities Director Moss explained that the projected 145 gallons per capita per day is an efficient and comfortable use of water, well below the average of most California cities. Mayor Settle closed the public hearing. Council discussion ensued around the number of years for which rates should be set. There was concurrence that three years would be optimal for which to project rate increases. Moved by Williams /Romero adopt Resolution No. 8677 retaining existing rates for 1997 -98; and increasing water service rates by 1.5°% effective July 1, 1998; by 2.5% effective July 1, 1999; motion carried (5 -0) Moved by Williams /Romero to concur with staff recommendation for no change to established charges for development impact fees at this time; motion carried (4 -1, Roalman opposed). 2. SEWER FUND (File No. 525) ' Council held a public hearing to review and discuss the 1997 Sewer Fund rate. Wastewater Division Manager Hicks presented the operating budget, significant operating program changes and CIP funded through the Wastewater Division by the Sewer Fund. City Council Meeting Tuesday, May 27,1997- 7:00 p.m. Page 3 Utilities Director Moss presented the proposed rate increases for the sewer service charge. Mayor Settle opened the public hearing, and having no requests to speak, closed the public hearing. After discussion, moved by SmithWilliams to adopt Resolution No. 8678 increasing sewer service charges by two and one -half percent (2.5 %), effective July 1, 1997; and by one and one - half percent (1.5 %), effective July 1, 1998; motion carried (5-0). 3. PARKING FUND (File No. 557) Council held a public hearing to review Parking Fund rate. Parking Manager Opalewski presented the parking operating program and proposed CIP projects. Mayor Settle opened the public hearing. Mike Spangler, BIA Parking Committee Chairman, asked Council to clarify what the BIA Parking Enterprise Funds can be used for, stating that the only documentation he has been able to locate states that it shall be used for additional parking downtown. Finance Director Statler clarified that the parking fund is funded by City wide parking revenues, though most revenues come from downtown. Moved by Romero/ Williams to direct staff to prepare a cost accounting analysis to determine if neighborhood parking district revenues fully recover costs for the program. CAO Dunn suggested that staff prepare a general overview of parking revenues and expenses for parking districts not in downtown. Council Member Romero agreed and withdrew the motion. Diane Hull. SLO resident and CPA, stated that the boundaries and responsibilities of the enterprise fund must be defined by resolution. She encouraged Council to move forward with the Marsh Street garage expansion. Mayor Settle closed the public hearing. Moved by Romero/Williams to tentatively approve the list of Capital Improvement Projects to be funded from the Parking Fund. Council Member Smith requested that the Marsh Street garage expansion project be removed from the motion and considered separately, so she could abstain from voting on that issue to avoid a potential conflict of interest. Council Member Romero amended his motion as requested; motion carried (4 -1, Roalman opposed). Moved by Romero/Williams to tentatively approve Marsh Street garage expansion project; motion carried (4 -0-1, Smith abstained). Parking Manager Opalewski reviewed a proposed parking meter increase of 10 cents per hour to 70 cents, effective January 1, 1998 and parking ticket fines increase of $2 per citation. He clarified that the parking meter increase does not require Council Action, as it was previously approved. Mayor Settle opened the Public Hearing. Mike Spangler stated that he could not endorse the increased rates until the Council made a decision on how the revenues will be used. He asked Council to either continue the parking enterprise program and build additional parking structures or to discontinue the program. 1 1 1 City Council Meeting Page 4 Tuesday, May 27,1997- 7:00 p.m. Diane Hull, SLO, asked for clarification of the revenue increases expected from the ten cent increase. Mayor Settle closed the public hearing. After discussion, moved by Romero/Williams to proceed with the increase in parking citation fines; motion carried (5 -0). 4. TRANSIT FUND (File No. 547) Council held a public hearing to review Transit Fund rate. Administrative Analyst Elliot stated that no significant operating changes are proposed at this time. He summarized proposed CIP projects which would be funded by the Transit Fund. He clarified that the current revenue sources will cover all outlays through 2000 -01 with no service reductions if federal grant restrictions are lifted. Mayor Settle opened the public hearing, and having no requests to speak, closed the public hearing. No format action was required or taken by Council. 5. GOLF COURSE FUND (File No. 888) Council held a public hearing to review Golf Course Fund rate. Parks & Recreation Director LeSage gave a brief overview of the operating budget for the golf course. Course Supervisor Paul Tavlor presented details of the operation. Mayor Settle opened the public hearing, and having no requests to speak, closed the public hearing. Moved by Williams /Romero to adopt Resolution No. 8679 retaining golf course fees at their current level through June 30, 1998: Senior/Youth Weekdays $5.00 General Weekdays $7.00 Weekends $7.75 Authorizing a Senior/Youth weekend rate of $5.75. Authorizing the sale of 10 -play cards at the rate of: Senior/Youth General $45 for 10 Rounds of Golf $55 for 10 Rounds of Golf Approving ongoing transfers from the general fund in the amounts of $68,800 in 1997 -98 and $61,600 in 1998 -99; motion carried (5 -0). COMMUNICATIONS Comm1. Council Member Smith asked Council if there was an interest in passing an ordinance to remove cigarette displays from retail counters, which would be enforced on a complaint basis. City Council Meeting Tuesday, May 27,1997- 7:00 p.m. Page 5 Council referred the matter to Police Department and -City Attorney's Office to bring back an ordinance. Comm2. Assistant CAO Hamaian said that Senator O'Connell's Office reported today that they have been successful in allocating $350,000 in State funds for the acquisition of property at 1011 Higuera St. There being no further business to come before the City Council, Mayor Settle adjourned the meeting at 11:05 p.m. to Tuesday, June 3, 1997 at 7:00 p.m. in the Council Chamber, 990 Palm Street, San Luis Obispo. APPROVED BY COUNCIL: 6/17/97 BG:dr Bonnie L. Gawf, ty erk 1 1