Loading...
HomeMy WebLinkAbout08/23/1976City Council Minutes August 23, 1976 Page 2 Mayor Schwartz opened the public hearing. No one appeared before the Council for or against the recommended rate increase. Mayor Schwartz declared the public hearing closed. Councilman Gurnee stated that he would support the sewer service charge increase in order to build up sufficient funds to pay for the City's share of the plant expansion. Councilman Petterson agreed, stating that accumulating the necessary funds ahead of time to pay the City's share was better than going to a bond issue with all its costs. Councilman Norris stated he was opposed to a 100% increase in the sewer service charge for the citizens of San Luis Obispo. He felt that the City had just adopted a good, balanced budget and had no, reason to raise sewer and water rates unless the Council wished to buy more goodies that were not needed. Finally, he felt the time to talk rate increases was when the budget was being considered so that the Council could prioritize their expenditures on a needs basis rather than on the whim of staff. He would oppose both sewer and water rate increases. Councilman Graham stated he would support the sewer service charges increased as he felt the City needed "the money to meet the requirements of the W.Q.C.B. Mayor Schwartz stated he too would support the rate increase as he felt the funds were needed to meet the environmental requirements of the state and federal laws. On motion of Councilman Petterson, seconded by Councilman Graham, the following resolution was introduced: Resolution No. 3117 (1976 Series), a resolution of the Council of the City of San Luis Obispo establishing sewer service charges and rescinding Resolution No. 2822. Passed and adopted on the following roll call vote: AYES: Councilmen Graham, Gurnee, Petterson and Mayor Schwartz NOES: Councilman Norris ABSENT: None On motion of Councilman Petterson, seconded by Councilman Gurnee, the following resolution was introduced: Resolution No. 3118 (1976 Series) * *, a resolution establishing a reserve for increased revenue from sewer service rates for the purpose of the expansion of the wastewater treatment plant with annual report to City Council on progress in reaching estimated funds for City's share. Passed and adopted on the following roll call vote: AYES: Councilmen Graham, Petterson, Gurnee, Norris and Mayor Schwartz NOES: None ABSENT: None ** Not exact wording of resolution. Actual resolution not received from Finance Department. 1 -B Staff recommended that the water service charges be increased by reducing the amount of water allowed for the minimum rate from 900 cubic feet of water for $3.50 to 500 cubic feet of.water for $3.50 and that all water used over 500 cubic feet per month be charged at .50F per 100 cubic feet. 1 1 1 City Council Minutes August 23, 1976 Page 3 Rudy Muravez, Director of Finance, reviewed for the City Council a computer analysis of the history of water consumption by City accounts. He continued that 33% of the household size meters have an average monthly consumption of 900 cubic feet or less. He stated that an analysis of the City's consumption history, excluding Cal Poly and consumption below 500 cubic feet show as follows: "The monthly service minimums currently on file would produce an annual revenue of $597,000. In order to surpass this amount, a uniform rate in excess of .15C would be required. If we are to meet our annual operating requirements without subsidy, than a rate in excess of .451� would be needed. Lastly, the proposed rate of .50,^, per C cf. would meet the annual revenue requirements plus provide approximately $90,000 towards capital replacement. The annual revenue generated by the .50C rate would be $1,199,000 or $219,000 _in excess of current projections. If the rate were adopted effective September 1, 1976, the first billing would be on November 1, 1976. However, due to the timing and cyclic nature of water consumption, the actual increase this year would be approximately 50% of the annual increase. The estimated additional revenue to be generated during the 1976/77 fiscal year would be $109,000. This amount is approximately equal to the General Fund subsidy the water operations will require this year." Councilman Graham hoped that in considering increasing water rates that the Council would consider people on fixed incomes and either give them free water or lower the rate to them. Mayor Schwartz opened the public hearing. Kay Richardson stated she was opposed to the City putting flourides in the City water as she felt it was dangerous to health and destroyed water pipes, etc. Robert Mote, Utility Engineer., explained to the City Council the amount of flouride added to the water and its chemical reaction in the water system. J.H. Fitzpatrick, City Clerk, informed the council that flourides were added to the water by the City only after being approved by the voters of the City in April, 1953. Pete Hansen, Soft Water Serivices, objected to the City Council considering an increase in water rates. He felt that to him it seems that the city government of this City has not only mismanaged the water system but all of their financial resources. He felt the City Council should make an effort to find out more of what has happened to the millions of dollars that they have taken from the water users and taxpayers of this community. Don Smith agreed with the proposed water rate increases but he also felt that the Council should look into a development or construction tax on each new dwelling which is adding cost to the City's utility system. Burch Page, Model Linen Supply, objected to the proposed 95% increase in his water bill. He felt the proposal was unfair to large users. ' Mayor Schwartz declared the public hearing closed. Councilman Norris stated it was unfair to charge the same basic water rate for each 100 cubic feet of water. He felt large water users should.get a break. He also objected to the City water system to pay its own way at this time. He felt that there was nothing wrong for the water system to be subsidized by a general or special tax. Finally, he objected to lowering the minimum and increasing the brackets as he felt it was unfair to the poor, the retired and students. City Council Minutes August 23,.1976 Page 4 Councilman Graham felt the water rate increase proposed was fair-and was needed to operate the system. Although he hoped something could be done to help reduce the burden on the senior citizens. Councilman Gurnee stated he supported the water rate increase as proposed. He felt that the water system should pay its own way as it is a growth inducing utility. He did not feel that it was right for the taxpayers to support the water and sewer operations. He would not object to increasing the minimum to 600 or 700 cubic feet which he felt would still bring in more revenue to support the system. Councilman Petterson would support the water rate increase to put the water system on a more self supporting basis. He felt that a:lot of additional costs werebrought on the City by higher levels of government such as the Health Department, W.Q.C.B., etc. Mayor Schwartz stated he would support the water rate increase. He felt that the water system must be made to support itself through proper rate structures and not look to the general taxpayers for supporting the growth factor in the water system. On motion of Councilman Graham, seconded by Councilman Petterson, the follow- ing resolution was introduced: Resolution No. 3119 (1976 Series), a resolution of the Council of the City of San Luis Obispo establishing rates for water service and rescinding a portion of Resolution No. 3005. Passed and adopted on the following roll call vote: AYES: Councilmen Graham, Gurnee, Petterson and Mayor Schwartz NOES: Councilman Norris ABSENT: None 1 1 -C Staff recommended that the green fees at Laguna Lake Golf Course be increased as follows: Weekdays: 9 holes from $1.50 to $1.75 18 holes from $2.50 to $2.75 Saturdays, Sundays and Holidays: 9 holes from $1.75 to $2.00 18 holes from $2.75 to $3.00 Mayor Schwartz declared the public hearing open. No one appeared before or against the proposed increase in green fees. Mayor Schwartz closed the public hearing. On motion of Councilman Gurnee, seconded by Councilman Petterson, the following resolution was introduced: Resolution No. 3120 (1976 Series), a resolution of the Council of the City of San Luis Obispo establishing fees for the use of Laguna Lake Golf Course. Passed and adopted on the following roll call vote: AYES: Councilmen Gurnee, Petterson, Graham, Norris and Mayor Schwartz NOES: None ABSENT: None 9:00 p.m., Mayor Schwartz declared a recess. 9:20 p.m., the City Council reconvened with all Councilmen present. City Council Meeting August 23, 1976 Page 5 2. At this time the City Council concluded their discussion and imple- mentation of the McMillan Sewer Assessment District. Ms. Peg Magillacott, Attorney for Wilson Jones, etc., presented for the Council's consideration a schedule of events and steps that must be taken to process the various documents to complete the McMillian sewer assessment district at this time. Robert G. Mote, Utilities Engineer, submitted for the Council's consideration a copy of the Engineer's report consisting of: 1) maps and descriptions of easements 2) construction plans and specifications 3) Engineer's estimate of cost 4) the assessment diagram 5) proposed assessment for the district He stated that totals to go to assessment for the construction and acquisition of easements was $73, 877.65 Ms. Magillacot presented for the Council's consideration a resolution of preliminary approval of the Engineer's report for the McMillian sewer assess- ment District. On motion of Councilman Norris, seconded by Councilman Graham, the following resolution was introduced: Resolution No. 3121, a resolution of preliminary approval of the Engineer's Report for the McMillan sewer assessment district. Passed and adopted on the following roll.call vote: AYES: Councilmen Norris, Graham, Gurnee, Petterson and Mayor Schwartz NOES: None ABSENT: None On motion of Councilman Gurnee, seconded by Councilman Norris, the following resolution was introduced: Resolution No. 3122,.a.resolution describing the proposed boundaries of assessment district, directing the filing of the boundary map and assessment diagram and the recordation of the notice of assessment.for the McMillan Sewer Assessment District. Passed and adopted on the following roll call vote: AYES: Councilmen Gurnee, Petterson, Graham, Norris and Mayor Schwartz NOES: None ABSENT: None On motion of Councilman Petterson, seconded by Councilman Gurnee, the following resolution was introduced: Resolution No. 3123, a resolution appointing time and place of hearing protest in relation to.proposed acquisition improvements and directing notice of McMillan sewer assessment district. 1 Passed and adopted on the following roll call vote: AYES: Councilmen Petterson, Gurnee, Graham, Norris and Mayor Schwartz NOES: None ABSENT: None City Council Minutes August 23, 1976 Page 6 On motion of Councilman Graham, seconded by Councilman Petterson, the following resolution was introduced: Resolution No. 3124 (1976 Series), a resolution calling for sealed proposals and fixing liquidated damages for failure to complete the work within the time specified, McMillan sewer assessment district. Passed and adopted on the following roll call vote: AYES: Councilmen Graham, Petterson, Gurnee, Norris and Mayor Schwartz NOES: None ABSENT: None The City Council then discussed, at the request of the staff, methods for funding the McMillian sewer assessment district. Robert Mote suggested that based on prior Council action, that the City acquires the assessment bonds for the district as an investment and to also help the property owners involved.. The savings for the property owners would be: 1) Usually the City applies a lesser interest rate than the 8% maximum allowable, although this would be up to the Council. Also, possible bond discount would be diverted. 2) Savings in cost of bond service for printing, insurance, etc. a savings of $500. 3) The project would have a guarantee of adequate funding in order to allow the poject to proceed a month or two earlier than would be the case if bonds were sold. This would possibly give the City a better price. Robert Mote stated that the total estimated project cost was $73,877.65, less reimbursement by the City of $10,337.65, leaves a subtotal of $63,540.00, minus the bond service of $500, gives a subtotal of $63,040.00, less estimated cash payments of $5,000.00 for a subtotal of $58,040.00, less contingencies included in the project minus $6,750.00, giving an estimated total cost to finance the project of $51,290.00. R. Muravez, Finance Director, stated he could not see any advantage for the City in purchasing the McMillan district funding, although the City has sufficient funds in their reserves to do so. Although he feels that this would restrict future use of the reserves. He felt the drawback was the current low rate of interest on recent bond issues. Bond interest has decended to 6.6 %, while twelve months certificate of deposit are 6.125 %. He felt there was no investment advantage to the City other than saving the cost of printing the bonds. He urged unless forced to critical scheduling factors which would delay the project, that the City not purchase the bonds but go out into the market. R.D. Miller, Administrative Officer, stated that while he appreciated Mr. Muravez's concerns, but in view of.past precedent in instances like this, the Council help the property owners within the assessment districts, and he would recommend that the City buy the bonds at 6 %. The past rate has been 5% in such instances but, of course, the market has changed considerably since the last assessment district. Mr. Muravez's .point in regards to delay of the project was also well taken and come into play since any substancial delay in going to bid would probably cause the project to be held over until next Spring when prices would undoubtedly be higher. The matter of funding was continued for further discussion by the City Council. City Council Minutes August 23, 1976 Page 7 3. Rob Strong, Community Development Director; brought to the Council's attention the referral of a Martinelli property rezoning from A- 1 -10 -D7 to M -1 under the county zoning provisions. He stated that the applicant is requesting the limited agricultural- zoning presently on the land to be changed to M -1 to permit multiple storage rentals or other industrial uses in the zone. Both the current general plan of the City and the County's area plan indicate residencial use of this property. However, the proposed 1 revision of the City's plan would classify this area as rural-industrial- agricultural, permitting a variety of nonintensive industrial uses which can be adequately served by on -site water and sewer systems. At a regular meeting on August 17, 1976, the Planning Commission considered the proposed zoning application and unanimously supported the staff's recom- mendation and moved to forward the recommendation to the Council for consideration and final action at the meeting of August 23, 1976. Planning Commission and Community Development staff recommend that the City support the use of the subject property for limited manufacturing activities which are consistent with the rural, industrial policies contained in the draft not adopted 1976 general plan. In order to reinforce consistency and establish appropriate control of intensive land use, the proposed zoning should also include a "D -AH" combining district designation. Finally; the City Council should forward to the county, a recommendation which supports the eventual zoning of the subject property to M1 -D -AH but suggests that the rezoning action be taken only subsequent to the amendment to the San Luis Obispo area plan to assure general plan zoning consistency. The City Council's timely consideration and act on this matter is necessary to allow staff time to prepare and forward to the county the City's recom- mendation prior the county Planning Commission Meeting on August 27, 1976. On motion of Councilman Gurnee, seconded by Mayor Schwartz, that the City Council accept the recommendation of the Planning Commission staff and direct Community Development Director to pass this on to the County Planning Commission. Motion carried: AYES: Councilmen Gurnee, Graham, Petterson and Mayor Schwartz NOES: Councilman Norris ABSENT: None 3 -X At this time the City Council considered the final passage of Ordinance No. 677 (1976 Series), an ordinance amending the Municipal Code changing the City Council Meetings to the first and third Tuesdays of each month. Mayor Schwartz declared the public hearing open. Mayor Schwartz stated that he is opposed to changing the date of the hearings by the City Council as traditionally has been on the first and third Mondays of each month, and he felt that this should be continued for the ease and convenience of citizens who may wish to attend the meetings. Constantly changing the meetings really doesn't add anything to that. 1 No one else appeared before the City Council. Mayor Schwartz declared the public hearing closed. On motion of Councilman Gurnee, seconded by Councilman Graham, Ordinance No. 677 was introduced for final passage. City Council Meeting August 23, 1976 Page 8 Finally passed on the following roll call vote: AYES: Councilmen Gurnee, Graham, Norris and Petterson NOES: Mayor Schwartz ABSENT: None 4. On motion of Councilman Grunee,:seconded by Councilman Graham, the following members were appointed to the Swimming Pool Task Force: Ken Miller Joe Turner Richard Anderson Joann Fenton Kenneth Miller Jeanann Forsyth Joann Jennings Motion carried on the following roll call vote: AYES: Councilmen Gurnee, Graham, Norris, Petterson and Mayor Schwartz NOES: None ABSENT: None 5. At this time the -City Council considered adoptioh-of,the'1976 /77 City Tax Rate. On motion of Councilman Petterson, seconded by Councilman Norris, the following resolution was introduced: Resolution No. 3125 (1976 Series), a resolution levying a tax for the 1976/77 fiscal year upon all taxable property in the City of San Luis Obispo and fixing the rate of such tax. Passed and adopted on the following roll call vote: AYES: Councilmen Petterson, Norris, Gurnee and Mayor Schwartz NOES: Councilman Graham ABSENT: None 6. The continued public hearing on the recommendation of the Planning Commission to adopt the 1976 General Plan Update, including the Discussion Guide for public hearing presented by the Community Development Department, was continued to Wednesday, August 25, 1976. 7. The City Clerk presented the bids received for WATER SYSTEMS IMPROVEMENT, CROSS TOWN FEEDER, PHASE II, City Plan number 11 -76. estimate estimate $363,776.10. Engineer's 1) A.A. Portanova & Sons, Inc. $361,354.00 Drawer P Agoura, CA 91301 2) Cal Vada Company 415,563.00 Post Office Box 2777 Fresno, CA 93745 3) Baker Corporation 465,950.00 Post Office Box 419 Arroyo Grande, CA .93420 4) J.C. Plumbing Company 477,437.00 11836 West Pico Boulevard Los Angeles, CA 90064 City Council Minutes August 23, 1976 Page 9 Upon recommendation of the Administrative Officer, and on motion of Mayor Schwartz, seconded by Councilman Petterson, that the low bid of A.A. Portanova & Sons, Inc. in the amount of $361,354.00 be accepted. Motion carried. There being no further business to come before the City Council, the meeting adjourned to 3:00 p.m., Tuesday, August 24, 1976 to receive a preliminary report on water study from Engineer Science ,MH. 5�itq-patrick, City Clerk M I N U T E S REGULAR MEETING OF THE CITY COUNCIL CITY OF SAN LUIS OBISPO TUESDAY, SEPTEMBER 7, 1976 - 7:00 P.M. COUNCIL CHAMBERS, CITY HALL, 990 PALM STREET Roll Call Councilmen PRESENT: Myron Graham, T. Keith Gurnee, Jesse Norris, Steve Petterson and Mayor Kenneth Schwartz ABSENT: None ' City Staff PRESENT: J.H. Fitzpatrick, City Clerk; R.D. Miller, Administrative Officer; Wayne Peterson, City Enginee; Don Englert, Police Captain; Dave Romero, Director of Public Services; Allen Grimes, City Attorney; Rob Strong, Director of Community Development;-Jim Sotckton, Director of Parks and Recreation 1. The continued public hearing on an appeal by the League of Women Voters to a decision-of the Planning Commission to approve the E.I.R. for Tract 592, Los Verdes Park, Phase III(continued from August 16, 1976). Dorothy Conner, representing the League of Women Voters, stated they .wish to appeal the recommendation of the Planning Commission to approve the Environmental Impact Report on Los Verdes Estates Phase III, Tract 592. They felt that due to the scope of the Creek Project being proposed, they believe that a very careful analysis of all policies, plans and consequences was mandatory, giving the irreversible nature of the impact. They said based on the study and review of the project, they felt that an E.I.R. should be required for the following reasons: 1) The cumulative impact of the creek channelization are not adequately addressed. 2) The site was not suitable for this type of development because of 1 its scenic and sensitive nature and that of its environs. the effects of the project on the site itself as well as the adjacent properties are glossed over. The E.I.R. appears to justify the project rather than to simply evaluate it. 3) The alternatives to the project itself are commented only briefly without.data to support the conclusions drawn. 4) The problem of drainage and sheet flow from the mobile home park on the site should be examined more carefully.