HomeMy WebLinkAbout11/03/1981M I N U T E S
REGULAR MEETING OF THE CITY COUNCIL
CITY OF SAN LUIS OBISPO
TUESDAY, NOVEMBER 3, 1981 - 7:00 P.M.
COUNCIL CHAMBERS, CITY HALL, 990 PALM STREET
SAN LUIS.OBISPO; CALIFORNIA
PLEDGE OF ALLEGIANCE
ROLL CALL
Councilmembers
Present: GlennaDeane Dovey, Ron Dunin, Robert Griffin, Allen Settle
and Mayor Melanie C. Billig
Absent: None
City Staff
Present: Bill Hanley, Interim Administrative Officer; George Thacher,
City Attorney; Pam Voges, City Clerk; Rudy Muravez, Finance
Director; Geoff Grote, Legal Assistant; Ann McKibbin,
Personnel Director; Roger Neuman, Police Chief; Dave Romero,
Public Services Director; Jim Stockton, Recreation Director;
Ken Bruce, Senior Planner and Terry Sanville, Senior Planner
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C O N S E N T I T E M S
C -1 CLAIMS AGAINST THE CITY
On motion of Councilman Settle, seconded by Councilman Dunin, claims
against the City for the month of November be approved and ordered paid
subject to the approval of the CAO. Motion carried, all ayes.
C -2 COUNCIL MINUTES
On motion of Councilman Settle, seconded by Councilman Dunin, the following
minutes be approved: October 6, 1981 - 7:00 p.m. and October 12, 1981, -
12:10 p.m. Motion carried, all ayes.
C -3 CONTRACT PAY ESTIMATES
On motion of Councilman Settle, seconded by Councilman Dunin, contract pay
estimates and change orders be approved and ordered paid. Motion carried,
all ayes.
C -4 CLAIM AGAINST THE CITY - FELICITY TAGIABUE
On motion.of. Councilman Settle, seconded by Councilman Dunin, the claim
against the City by Felicity Tagiabue in the am6unt of $57.75 for damages
caused by an alleged city sewer backup in the claimant's front and back
yard be denied. Motion carried, all ayes.
C -5 FINAL ACCEPTANCE OF TRACT 710
On motion of Councilman Settle, seconded by Councilman Dunin, the following
resolution was introduced: Resolution No. 4659 (1981 Series), a resolution
of the Council of the City of San Luis Obispo granting final acceptance of
public improvements in Tract No 710, Timberline Condominiums, located at
750 Chorro Street; R. Bunnell, subdivider.
City Council Minutes
November 3, 1981 - 7:00 p.m.
Page 2
Passed and adopted on the following roll call vote:
AYES: Councilmembers Settle, Dunin, Dovey, Griffin and Mayor Billig
NOES: None
ABSENT: None
C -6 MISSION -STYLE SIDEWALK
After brief discussion it was moved by Councilman Griffin, seconded by
Councilwoman Dovey, that consideration of the report and resolution by the
Public Services Director on cost - sharing for Mission -style sidewalks be
deferred until the Beautification Program could be completed. Motion
carried, all ayes.
C -7 CONSULTANT SELECTION METHODS
Council considered the report from the Public Services Director on
Resolution No. 2986, establishing the method,.of selecting consultants for
City architectural services.
Councilman Settle stated that he did not support hiring firms "on"a rotating
basis but that the city policy should state that work not be confined to a
single firm. '
Bill Hanley suggested additional wording to' "read, "It is "the further policy
of the City that.such individual or firm shall be given preference consid-
eration in,the.selection process."
After brief discussion Council directed that this item be referred to the
CAO for additional report.
C -8 CULTURAL HERITAGE COMMITTEE
Council reconsidered a resolution establishing the responsibilities of the
Cultural Heritage Committee (continued from 8/18/81).
Councilwoman Dovey stated she could support the proposed resolution with
amendment as follows: Section 3, to delete the second paragraph and insert
the following sentence as the next to last sentence of the.first- paragraph
of the section, "The Committee shall specifically include at least one
person trained and experienced in structural rehabilitation."
Councilman Griffin stated that he could also go along with "the resolution,
although he would like to see the first whereas read, "Whereas, preser-
vation of the-Cultural Heritage..of San.Luis Obispo represents significant
economic, aesthetic and educational benefits to the community;..." `He
would also add the word in the last sentence of that page, remove the word
"immediately" and insert "promptly ".
On motion of Councilman Settle, seconded by.Councilman Dunin, the "follow -
ing resolution was introduced: Resolution No. 4660 (1981 Series), a'resol-
ution of the Council of the City of San Luis Obispo establishing the the
Cultural Heritage Committee with amendments as suggested.
Passed and adopted on the following roll call vote:
AYES: Councilmembers Settle, Dunin, Dovey, Griffin and Mayor,Billig
NOES: None
ABSENT: None
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City Council Minutes
November 3, 1981 - 7:00 p.m.
Page 3
C -9 ARCHITECTURAL SERVICES - CORPORATION YARD
On motion of Councilman Settle, seconded by Councilman Dunin, the following
resolution was introduced: Resolution No. 4661 (1981 Series), a resolution
of the Council of the City of San Luis Obispo approving an agreement
between the City and Ross Levin & Maclntyre Architects to conduct
architectural services for the City Corporation Yard.
Passed and adopted on the following roll call vote:
AYES: Councilmembers Settle, Dunin, Dovey, Griffin, and Mayor Billig
NOES: None
ABSENT: None
C -10 WATERLINE IMPROVEMENT PROJECTS
Council considered plans and specifications for "WATERLINE IMPROVEMENT
PROJECT: BEACH STREET WATERLINE, PACIFIC TO PISMO, BOND STREET WATERLINE,
KENTUCKY TO LONGVIEW, AND LINCOLN STREET WATERLINE, BROAD TO CHORRO ", City
Plan Nos. F -07, F -08 & F -09, bid estimates $14,848, $18,357, and $17,365
respectively, without contingencies.
On motion of Councilman Settle, seconded by Councilman Dunin, the plans and
specifications be approved and staff be authorized to call for bids.
Motion carried, all ayes.
C -11 HYDROELECTRIC PLANT NO. 1
Council considered plans and specifications for "TURBINE GENERATOR FOR
HYDROELECTRIC PLANT NO. 1 ", City Plan No. F -25, bid estimate $360,000
without contingencies.
On motion of Councilman Settle, seconded by Councilman Dunin, to approve
the plans and specifications and authorize staff to call for bids. Motion
carried, all ayes.
1. APPEAL OF PLANNING COMMISSION - V. MONTGOMERY
Council held a public hearing to consider an appeal by Vic Montgomery of a
denial by the Planning Commission to uphold staff interpretation that
utility company offices are not an allowed use in the C -N zone
(neighborhood /Commercial); Vic Montgomery, appellant.
Ken Bruce, Senior Planner, stated that the Planning Commission on a 3 -0
vote upheld the Community Development Director's determination that utility
company offices were not an allowed use in the C -N zoning district: He
stated that Mr. Montgomery had proposed a utility office as a part of the
Maymont Plaza project located at 2238 Broad Street, but he wished the
Council to understand that the basic issue was whether the C -N zoning
district permits "utility company offices" or could be interpreted to
permit the same under the general plan or ordinance language. The Planning
Commission concurred with the staff's determination that the said use was
specifically eliminated as a permitted use when the Council reviewed and
approved the final text of the Zoning Ordinance. The intent of the C -N
zone was to meet the retail sales and personal service needs of surrounding
neighborhoods. He stated that although the Commission acted to deny the
appeal, their motion encouraged support of the project at this location
through such other form of action as could be devised, including a planned
development, rezoning, or other means.
Mayor Billig declared the public hearing open.
City Council Minutes
November 3, 1981 - 7:00 p.m.
Page 4
Vic Montgomery spoke on behalf of his appeal and pointed out that in the
last paragraph of the staff report, the Planning Commission did encourage
support of the project at Maymont Plaza, even though they had acted to
uphold the appeal. He would, therefore, ask the Council, should they
decide that utility company offices were not an allowed use in C -N zones,
to give some direction towards this project. Upon question by Councilman
Griffin, he stated that the convenience for - paying- P.G.&E.'- utility -bills
downtown would remain in-the form of.a- downtown paystafion.for=P.G &E
utility bills:
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Mayor Billig declared the public hearing closed.
Councilman Settle stated that he did not feel that the C -N zone was appro-
priate for utility company offices, and would, therefore, support the
Planning Commission recommendation denying Mr. Vic Montgomery's appeal but
would support a planned development for PG &E at the Broad Street location.
Councilman Griffin agreed with Councilman Settle's comments as did Council-
woman Dovey.
Councilman.Dunin stated he did not feel the City had any choice but..to deny
the appeal because of the present zoning regulations, but he'agreed with
other statements made by Councilmembers; and he would support a meeting to
review the feasibility of taking another form of action to either include
planned development or some other means for this project.
It was general consensus that Council would be supportive of a possible
planned development rezoning for the appellant's project located at 2238
Broad Street.
On motion of Councilman Settle, seconded by Councilwoman Dovey, the follow-
ing resolution,was introduced: Resolution No. 4662 (1981 Series).,.a resol-
ution of the Council of the City of San Luis Obispo denying an appeal.of
the Planning Commission's determination that utility company offices are
not an allowed use in the C -N zone.
Passed and adopted on the following roll call vote:
AYES: Councilmembers Settle, Dovey, Dunin, Griffin and Mayor Billig
NOES: None
ABSENT: None
2. SEWER SERVICE CHARGES
Council held a public hearing to consider a resolution to revise.the sewer
service charges.
Gerald W. Peasley, CPA, the City's Utility Service Fee Consultant, again
reviewed for the Council (first presented his report on October 12,.1981)
the more notable proposed changes to the City sewer rates._ He stated the
City has applied for a combined Federal and State grant for required
modifications to the sewer treatment plant. The total cost of the
modifications were estimated at 6.million.dollars. The changes.to the
treatment plant were needed in order to meet the requirements of the State
Water Resources Control Board. Before the City may receive the grant, it
would also have to comply with several other requirements. One of these
requirements was that charges for sewer service must be developed in
accordance with methods established by the Water Resources Control Board.
The objectives of this rating plan were: 1) to recover through user .
charges, the full cost of operating and maintaining the City sewer system
and 2) to apportion these charges fairly among various classes of users,
based upon the characteristics of their wastewater and their use of the
system. The determine the apportionment of user charges, the rating plan
employed three factors provided by the Water Resources Board Guideline. 1)
The identification of users in the standard classification groups; 2) the
measurement of flow through the treatment plant user group; and 3) the
strength of the wastewater to be treated from each user group. Although
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City Council Minutes
November 3, 1981 - 7:00 P.M.
Page 5
there were some 20 possible user groups, the establishment of a user class
within the rating plan had been limited to those which have a significant
impact on the treatment facilities. Several of the standard user classes
had been consolidated into a single class whenever the combined flow and
characteristics of their wastewater were insignificant to the total system.
He had two tables available showing proposed wastewater rates and
comparison of present and proposed service rates.
Upon question by Councilman Dunin, Gerald Peasley stated that you can
' differentiate between any class of groups and subgroups you wish, but it
would probably not be cost - effective to try to break it down into too many
groups.
Rudy Muravez, Finance Director, addressed the question of whether hospitals
should also be separated out. He stated that hospitals proved to have an
insignificant adverse effect on the wastewater facilities. He added that
there had also been a concern about whether or not to add bakeries to the
restaurant groups. He said that this could be done, but he did not feel
that "it would be cost effective as there were so few bakeries in town they
would not have a significant effect as far as lowering the rates for the
restaurants by being added into this group. He felt that this was also
true for laundromats and car washes. He felt that if these numbers were
larger, if might be worthwhile; but he stated that our city was primarily a
residential and tourist one. In fact, he said that 68 restaurants had been
listed at the time of survey and there were already three additional. The
question had been raised about fast -food and take -out restaurants; and he
said that although they do not wash their dishes as they are mostly
take -out, they do add the same strengths to the system. He felt it was
equitable, because if.they use less water it would also cost them less.
Upon question by Councilman Griffin, Mr.-Muravez added that the grant
requires the City to stay within ten percent of their guideline . .
conditions. Mr. Muravez pointed out that the proposed increases would be
to cover the operating expenses of the wastewater treatment plant and to
start building funds for replacement or future capital improvements.
' Councilman Griffin suggested that possibly the City could we extend the
transition period on raising these rates to fund the actual capital costs
in order to be more fair to the user.
Mayor Billig declared the public hearing open.
Mel Hahn, owner of a fast -food restaurant for 13 years, stated that
although they do not have.that many dishes to wash; they do use:probably as
much water as the regular restaurants as they serve more drinks; and they
utilize a cooling system, which requires additional water. He also felt
that studies cited by staff were -for metropolitan areas which would not be
a fair comparison with the city of San Luis Obispo..
Mike Maino stated he was concerned about flow rates in relation to.charges,
as he was concerned with the 11� acres of his property that he must
landscape.
Jerry Borges, representing Madonna Plaza, stated that he was concerned with
the application of rates, as all of the stores in Madonna Plaza are on one
meter; .and he didn't feel this formula allowed for a fair distribution of
charges to each store and.restaurant.
Rudy :Muravez responded that the:proposed resolution:does meet the needs for
probably 90 percent of the community, but there is always a percentage of
users and this is one example where cases need:to be :looked at on an
individual basis, and they would be doing this.
Michael - Frucht, owner of Michaels's Delicatessen -and member of the:down-
town B.I.A., stated that he felt that markets, automobile repair places,
laundromats, photo finishing, manufacturing, bakeries, hospitals, taverns,
furniture refinishing, and other businesses were overlooked and should be
considered or separated out as the restaurants were. Quality Control
City Council Minutes
November 3, 1981 - 7:00 p.m.
Page 6
listed 20 possible groups, and the city only elected to adopt eight of
them. He concluded by stating that between the increase in sewer rates and
now probable water rate increase and parking, it is just too much for the
small businessman downtown.
Joe Rizzo also felt that hospitals-should be made a part of the group like
the restaurants were.
Gerald Peasley responded that the strength in hospitals was not that high
and that was why they were not separated out.
Richard Clayton, manager of Maya Restaurant, stated that he was also con-
cerned with the proposed rates, that they were not being properly propor-
tioned.
Pieter DeGroot, representing Model Linen, stated that their company paid
approximately one percent of the sewer rate bill for this city. This is
one of the highest increases that they have ever been hit with. He did add
that hospitals were probably lessened because his firm did all of +their
laundry for them. He felt that with these high increases, they can -no
longer compete with outside industry as their rates were higher. This was
not fair to them. He continued that he did not feel that business can grow
with a two percent growth -rate factor. He would like the Council to
reassure him that ongoing businesses will not continue to be hit.with these
types of rate increases.
Mayor Billig declared the public hearing closed.
On motion of Councilwoman Dovey, seconded by Councilman Griffin, to adopt
the resolution establishing wastewater service charges and rescinding res-
olution No. 3966 with the amendment to section 2.1.d to add "bakeries."
Councilman Dunin agreed that the Council must do something to help existing
businesses and encourage them to stay in town. Maybe the city should look
to lowering their rents, longer amoratization period, etc. At this time he
did not feel the resolution was an equitable one.
Councilman Settle stated that San Luis Obispo was a full - service city, and
we could not afford to have the sewer system fail and a grant was contin-
gent upon this resolution being adopted using Quality Control guidelines.
His main concern was that the city does not have the money necessary for
major replacement costs. He would, therefore, support the rate increase.
He stated that the State is in real financial straits, and he does not want
to see the city of San Luis Obispo in the same position.
Councilman Griffin stated he shared Councilman Dunin's concerns regarding
the classification survey, and he would be interested in staff looking at
ways to bring some sort of equalization to it, possibly using a phase -in
approach.
Bill Hanley, Interim CAO, explained that it would take many years to gener-
ate the funds necessary to replace capital costs. He felt the city would
be shirking their responsibility if they did not start getting funds now.
He said that the increase is for 12.8 percent, this is over a two -year
period which represents only 6.4 percent per year which he does not feel
even kept up with the inflationary commodities.
Rudy Muravez again reminded the Council that there was no catchup provision
in this rate structure for replacement of capital costs, but rather we
would be starting from scratch.
Gerald Peasley added that the city had actually been undercharging the
restaurants for a long period of time and that this formula would actually
be making it more equitable for other types of users.
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City Council Minutes
November 3, 1981 - 7:00 p.m.
Page 7
Councilwoman Dovey commented that the city used to be able to put fund
raising bond issues on the ballot and let the voters decide to tax
themselves, but now the-city must find other ways to fund these same costs.
She felt we were using the sewer system now and "wearing it out ", and we
should be paying now to replace parts required later.
Mayor Billig stated that if we are to accept the grant, we have to make
some of these changes. She felt that the Council must address the problems
that have been created by prior councils. She felt the program should be
paying for itself - -to do otherwise would irresponsible. She added that
there were many problems already in existence and, in order to provide help
for those problems, the rates must be raised.
On motion of Councilwoman Dovey, seconded by Councilman Griffin, the
following resolution was introduced: Resolution No. 4663 (1981 Series), a
resolution of the Council of the City of San Luis Obispo establishing new
sewer service charges to be effective December 1, 1981, as amended to add
bakeries and additional wording changes by Councilman Griffin.
Passed and adopted on the following roll call vote:
AYES: Councilmembers Dovey; Griffin, Dunin, Settle and Mayor Billig
NOES: None
ABSENT: None
8:50 p.m. Mayor Billig declared a recess. 9:.10_p.m. City Council
reconvened, all Councilmembers present.
3. TENTATIVE MAP FOR TRACT 993
City Council held a public hearing to consider a Planning Commission
recommendation to approve the tentative map for Tract 993 to create a
8 -unit residential air -space condominium located at 415 Dana Street, R -3
zone; Jonathan Lindenthaler, subdivider.
Ken Bruce, Senior Planner, stated that the Planning Commission on a 4 -0
vote recommended the Council grant the approval of the tentative map
subject to the variance, findings, and conditions listed in the resolution.
He stated that the staff had recommended different wording for condition 6,
8, and..22, although they would have no problem with 8 and 22 as recommended
by the.Planning Commission but would like to see condition 6 read as
follows, "Subdivider shall widen Stenner and San Luis Creeks within the
tract and grant drainage easements in accordance with the approved creek
setback and improvement standards to be established by the City Council
with 1:1 slope bank and gabions for slope bank stabilization to the
approval. of the City Engineer. The present condition does allow for
drainage easements, but does not require the developer to contribute
towards the widening of San Luis Creek.
Dave Romero, Public Services Director, agreed that creek improvements
should be required but that a formula has not yet been devised or adopted
by the City Council. He did feel substantial benefits would be gained by
the future tenants. He stated that he had talked with the developer
earlier that day and tried to get some voluntary participation from him but
was unable to reach a satisfactory agreement.
George Thacher, City Attorney, explained the legalities involved in trying
to impose this condition at this late date. He did not feel that the city
would be in a strong position if the developer should take exception to the
condition.
Mayor Billig declared the public hearing open.
City Council Minutes
November 3, 1981 - 7:00 p.m.
Page 8
Jonathan Lindenthaler, representing the developer, stated he did not feel
it was fair to require creek requirements at this time as the project was
too far along at this point to turn around and add an additional $50,000 to
$100,000 worth of improvements for only 8 units. He felt that if this'
condition had been required at the time the development was first
initiated, he could support it. He did agree with staff criteria for
setback lines, and he would agree that some sort of creek improvements
should be required of future developments. He felt that this development
had already taken steps to flood -proof the buildings and any future buyer
or tenant would be made well aware that this would not be 100 years
flood - proofed. He felt that the dedication of the property they had
already made was a sufficient contribution.
Dennis Wheeler, developer of the property, stated that past councils
encouraged developers to build within the city; and when he first thought
of developing this property, he researched all necesssary requirements and
on that basis decided to developthere. He was now being told by his
consultant that this might cost him an additional $100,000; and he did not
feel it would now be a saleable project if the Council should impose this
requirement.
Steven Puglisi, representative of an adjacent property owner, stated he was
also very concerned for these same reasons. He said that he had received
tentative approval in October of 1980 on his project adjacent to this one
and had received an extension to his use permit last month and now he is
afraid that this requirement will be imposed upon him, which he feels:will
be extremely detrimental to the project.
Mayor Billig declared the public hearing closed.
Councilwoman Dovey said she sympathized with the developer's concerns felt
the city had an obligation to require creek improvements in the future.
Councilman Griffin stated that he would like to see additional conditions 1
for creek development, but he wants to see the policy come before the
Council and be adopted first.
Councilman Settle felt this Council could not legally impose this
condition at this point in time.
Councilman Dunin agreed with comments made by the other councilmembers.
Mayor Billig stated that the city has imposed these conditions for hill-
side-developers, and she feels it's only fair to also impose creek improve -
merits upon the developer but in this case it would be unfair as no policy
has yet been adopted.
On motion of Councilman Griffin, seconded by Councilman Settle, the follow-
ing resolution was introduced.:. Resolution No. 4664 (1981 Series),'a reso-
lution of the Council of the City of San Luis Obispo granting approval of
tentative map for Tract 993 located at 415 Dana Street.
Passed and adopted on the following roll call vote:
AYES: Councilmembers Griffin,.Settle., Dovey, Dunin and Mayor Billig
NOES: None
ABSENT: None 1
4. DOWNTOWN PARKING PROGRAM
Council held a public hearing to consider public comment on the draft
environment impact report for critique to the proposed Downtown Parking
Program.
City Council Minutes
November 3, 1981 - 7:00 p.m.
Page 9
Mayor Billig stated that the environmental impact report would be the only
item to be addressed at tonight's meeting and that public testimony would
be taken on the adequacy of the EIR but a final decision would not be made
until December 8, and she would request that the public limit their
comments to this one item.
Terry Sanville, Senior Planner, stated that the purpose of the hearing was
to allow the City Council and interested people an opportunity to talk
about the draft EIR for the Downtown Parking Program. He stated the
Council should take public testimony on the EIR and Councilmembers might
also comment on the accuracy or completeness of the draft report. The
consultant would then prepare written responses to all pertinent comments
made at the meeting, on or before November 6. He said a meeting had been
tentatively scheduled for Tuesday, December 8, at which time the Council
would consider certifying the final EIR and review and consider the
proposed Downtown Parking Program.
Kay Ransom; representing project director and consultant with Earth
Metrics, gave a thorough presentation outlining the project description,
location, objectives, and project characteristics. She then went into the
environmental effects of the proposed package project and highlighted
several key.areas, the most important being the land used in planning,
circulation and parking, aesthetics and urban design, and the cultural
resources. She also highlighted alternatives to the.proposed project, such
as no projects, alternative locations, alternative parking structure
design, alternative parking strategies, and alternative transportation
strategies, including small lights and satellite parking lots.
Mayor Billig declared the public hearing open.
John French, 1160 Marsh Street, stated his only concern was of page 2 of
the report, paragraph 2, which read, "The parking district would also
receive parking meter revenues from all public meters within its
' boundaries."
After brief discussion Council agreed that it should probably be reworded
to read, "The parking district could consider receiving parking meter
revenues" or it "may consider receiving parking meter revenues."
Mike Maino, 1424 Mill Street, was concerned with the satellite spaces and
wished to know how many of them would be used by county or city employees
and what effect, if any, the county's new structure would have on this pro-
posed parking structure.
Mayor Billig declared the public hearing closed.
Councilman Settle stated that he found the EIR to be adequate. He would
like to-see the county parking question addressed more fully and would also
like to see the economic financing question addressed. .
Councilman Dunin agreed with concerns by Mr. Settle and would also like to
see -a report on the economic impact. He agreed it was not a function of
the EIR but would like to see various alternatives. He felt the EIR was
professional and could support it.
Councilman Griffin agreed the draft EIR was adequate. He would like to see
further clarification on the words "project" and "program" used throughout
the document.
' Councilwoman Dovey agreed that the report was well done. It clearly stated
that economics and demographics had not been addressed per the worksheet
outlined by City staff.
Mayor Billig agreed with all the comments made by the Council and would ask
the consultants to put together some sort of analyses on the economics and
financing possibilities prior to the December 8 Council meeting.
City Council Minutes
November 3, 1981 - 7:00 p.m.
Page 10
After brief discussion there was consensus that Councilmembers submit a_ny
additional concerns regarding economics to the Mayor, within the next-
couple of days, and she would meet with the CAO and staff on alternative
financing and economic options so that a program could be developed before
the December 8 meeting.
5. JACK HOUSE GARDEN REHABILITATION
A. Presentation by.SEDES of proposed plans for Jack House Gardens, and B.
Council considereration to approve plans and adopt resolution to 1
appropriate $11,800 for Segment II.
Councilman Dunin stepped down.
Jim Stockton, Director of Parks and Recreation, urged Council approval of
the proposed resolution.
Jerry Emery, representing SEDES, presented the plans of the Jack House
Garden explaining indepth the overall plans and plans for Segment II.
On motion of Councilman Griffin, seconded by Councilman Settle, to approve
plans and introduce the following resolution: Resolution No. 4665 (1981
Series), a resolution of the Council of the City of San Luis Obispo appro-
priating $11,800 for Segment II of the .Jack House Gardens.
Passed and adopted on the following roll call vote:
AYES: Councilmembers Griffin, Settle, Dovey, and Mayor Billig
NOES: None
ABSENT: Councilman Dunin
Councilman Griffin stated he would be interested in getting additional ,
information on the dollars that are being matched and if it was staying at
a reasonable level. He added that he felt that the Jack House Committee
has done a tremendous job thus far.
Councilman Dunin returned to his seat.
6. WATER RATE REPORT
Gerald Peasley, rate consultant who prepared the water revenue "requirement
study, then outlined step -by -step his report showing the purpose, design of
rates, rate philosophy, types of water rates, development and design" and
rate schedules, etc. His presentation used the basic assumption
underlining his analysis that each user of the service should pay in
accordance with its demands on the system. A measure of demand was
determined by the size of the customer's meter and the amount of water
consumed during the billing period. The cost of operating this system were
determined from the recorded costs of 1980/1981, the budgeted costs for the
current fiscal year and the projections for the next two .years. He stated
there were several factors which significantly effected the proposed rates,
the largest item affecting the revenue requirement was the change in
determining capital costs. As with the sewer system, he was recommending
that the city adopt a capital replacement reserve method with funding of
capital costs, rather than the cash flow method previously used._ Other
factors which affected the rate were the loss of fire hydrant revenue from
the city's general fund (approximately $50,000 per year) and a reduction in '
interest earnings during the next three years. The reduction in interest
was projected as the water fund cash reserves were used to pay for the
installation of the hydroelectric plant. While a single rate option was
being proposed as the most appropriate for the city, an alternate rate had
been provided for "lifeline" service. Although the city was under no
obligation to provide a lifeline rate, it was a requirement for utilities
operating under the State's Public Utility Commission. He was not in
City Council Minutes
November 3, 1981 - 7:00 p.m.
Page 11
agreement with staff who was recommending that the lifeline charge be
adopted. Under the proposed rates, the city would realize an approximate
26 percent increase in revenue during the middle year 1982/83. That
increase would be spread across the various classes of customer, ranging
from 21 to 42 percent. Upon question from Councilman Griffin, he also
explained the special rate problems related to Cal Poly. This was a rather
complex formula, taking into account contribution towards the system's
initial capital costs paid by Cal Poly.
' After brief discussion the City Council, upon general consensus, agreed
upon using the lifeline approach as recommended by staff.
Councilman Dunin questioned the inequity of also charging a utility tax in
addition to trying to have the water rates pay for themselves.
Gerald Peasley explained that he did not feel that it was that inequitable
because the system is based upon the "what if's" if we contracted with a
private utility company.
Upon general consensus staff was directed to set a public hearing on the
proposed water rate.
E -1 AGREEMENT FOR EMPLOYER /EMPLOYEE NEGOTIATIONS
After brief discussion it was moved by Councilman Dunin, seconded by
Councilman Griffin, that the following resolution be introduced:
Resolution No. 4666 (1981 Series), a resolution of the Council of the City
of San Luis Obispo approving an agreement between the City and Becker &
Bell for employer /employee negotiations through April 30, 1982, and
rescinding Resolution No. 4644.
Passed and adopted on the following roll call vote:
1 AYES: Councilmembers Dunin, Griffin, Dovey, Settle and Mayor Billig
NOES: None
ABSENT: None
11:50 p.m. City Council adjourned to Closed Session. 2:15 a.m. City
Council reconvened in Regular Session.
There being no further business to come before the City Council, Mayor
Billig adjourned the meeting to Monday, November 9, 1981, at 12:10 p.m.
APPROVED BY COUNCIL: 11/17/81
F�J
amela Voges, C' y.Cle' rk