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.
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1
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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.