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HomeMy WebLinkAbout07/05/1983City Council Minutes Tuesday, July 5, 1983 - 7:00 p.m. Page 2 Romero, Public Works Director; Dave Ion, Financial Analyst; Steve Smith, Battalion Chief C O N S E N T C A L E N D A R C -1 COUNCIL MINUTES On motion of Councilman Griffin,- .seconded..by Councilman Settle, the following minutes be approved as amended: Tuesday, May 3, 1983 - 7:00 p.m.; Wednesday, May 4, 1983 - 12:10 p.m.; and Tuesday, May 31, 1983 - 7:00 p.m. Motion carried, all ayes. C -2 CONTRACT PAY ESTIMATES On motion of Councilman Griffin, seconded by Councilman Settle, that contract pay estimates and change orders be approved and ordered paid. Motion carried, all ayes. C -3 CLAIM AGAINST THE CITY - STATE FARM INSURANCE CO. On motion of Councilman Griffin, seconded by Councilman Settle., that claim against the city by State Farm Mutual Automobile Insurance Company in the amount of $2,094.50 for vehicle damage incurred by their client when collision occurred with city bus at the intersection of Southwood Drive and Johnson Avenue due to alleged negligence by city be denied. Motion carried, all ayes. C -4 .PLANS AND SPECIFICATIONS - SIDEWALK RECONSTRUCTION PROJECT On motion of Councilman Griffin, seconded by Councilman Settle, that plans and specifications for "SIDEWALK RECONSTRUCTION PROJECT, CHORRO - MONTEREY TO HIGUERA (MISSION STYLE) "; City Plan No. G -30; bid estimate $75,384, without contingencies be approved and staff authorized to call for bids with the Administrative Officer authorized to award contract. Motion carried, all ayes. C -5 PRIORITY RATING LIST FOR $25,000 QUARTERLY WATERLINE IMPROVEMENTS On motion of Councilman Griffin, seconded by Councilman Settle, the following resolution be introduced: Resolution No. 5146 (1983 Series), a resolution of the Council of the City of San Luis Obispo awarding contract to Cecil Construction Company in the amount of $30,703 for "FOOTHILL /SANTA ROSA / CHORRO STORM DRAIN PROJECT "; City Plan No. E- . -04B; bid estimate $45,000, without contingencies and authorizing Mayor to sign. Passed and adopted on the following roll call vote: AYES: Councilmembers Griffin, Settle, Dovey, Dunin and Mayor Billig NOES: None 1 ABSENT: None a C -7 REPORT ON BIDS - SEWERLINE IMPROVEMENT PROJECT On motion of Councilman Griffin, seconded by Councilman Settle, the following resolution was introduced: Resolution 5147 (1983 Series), a resolution of the Council of the City of San Luis Obispo awarding a contract to Madonna On motion of Councilman Griffin, seconded by Councilman Settle, to approve the priority rating list for the $25,000 Quarterly Waterline Improvements for the first quarter of 1983 -84 and authorize the project for the installa- tion of an 8" waterline in Pismo Street from Carmel to Beach. Motion carried, all ayes. C -6 REPORT ON BIDS. - FOOTHILL /SANTA ROSA / CHORRO STORM DRAIN PROJECT On motion of Councilman Griffin, seconded by Councilman Settle, the following resolution be introduced: Resolution No. 5146 (1983 Series), a resolution of the Council of the City of San Luis Obispo awarding contract to Cecil Construction Company in the amount of $30,703 for "FOOTHILL /SANTA ROSA / CHORRO STORM DRAIN PROJECT "; City Plan No. E- . -04B; bid estimate $45,000, without contingencies and authorizing Mayor to sign. Passed and adopted on the following roll call vote: AYES: Councilmembers Griffin, Settle, Dovey, Dunin and Mayor Billig NOES: None 1 ABSENT: None a C -7 REPORT ON BIDS - SEWERLINE IMPROVEMENT PROJECT On motion of Councilman Griffin, seconded by Councilman Settle, the following resolution was introduced: Resolution 5147 (1983 Series), a resolution of the Council of the City of San Luis Obispo awarding a contract to Madonna 1 1 City Council Minutes Tuesday, July 5, 1983 - 7:00 p.m. Page 3 Construction Co. in the amount of $106,650 for "SEWERLINE IMPROVEMENT PROJECT, HIGUERA STREET - NIPOMO TO CHORRO AND CHORRO STREET - HIGUERA TO SAN LUIS CREEK, PACIFIC STREET - CHORRO TO MORRO AND MORRO STREET - PACIFIC TO BUCHON "; City Plan Nos. F -13 and E -17; bid estimates $57,500 and $54,635 respectively, without contingencies and authorizing Mayor to sign. Passed and adopted on the following roll call vote: AYES: Councilmembers Griffin, Settle, Dovey, Dunin and Mayor Billig NOES: None ABSENT: None C -8 GENERAL MUNICIPAL ELECTION NOVEMBER 8, 1983 A. On motion of Councilman Griffin; seconded by Councilman Settle, the following resolution was introduced: Resolution No. 5148 (1983 Series), a resolution of the Council of the City of San Luis Obispo calling the General Municipal Election to be held Tuesday, November 8, 1983. Passed and adopted on the following roll call vote: AYES: Councilmembers Griffin, Settle, Dovey, Dunin and Mayor Billig NOES: None ABSENT: None B. On motion of Councilman Griffin, seconded by Councilman Settle, the following resolution was introduced: Resolution No. 5149 (1983 Series), a resolution of the Council of the City of San Luis Obispo requesting the San Luis Obispo County Board of Supervisors consolidate the General Municipal Election on Tuesday, November 8, 1983, with the School Governing Boards and Special Districts Election to be held on said date. Passed and adopted on the following roll call vote: AYES: Councilmembers Griffin, Settle, Dovey, Dunin and Mayor Billig NOES: None. ABSENT: None C. On motion of Councilman Griffin, seconded by Councilman Settle, that the Certificate of Sufficiency of the parking initiative filed May 31, 1983, with the City Clerk be received and filed with discussion of placing the parking initiative on the ballot be continued to Wednesday, July 6, 1983, at 6:00 p.m. Council discussion of possible advisory measures also be continued to this date. Motion carried, all ayes. C -9 LANDLORD /TENANT INSPECTION SERVICES AGREEMENT On motion of Councilman Griffin, seconded by Councilman Settle, the following resolution was introduced: Resolution No. 5150 (1983 Series), a resolution of the Council of the City of San Luis Obispo approving an agreement for the Landlord /Tenant Inspection Services Coordinator for the Human Relations Commission from July 1, 1983, through June 30, 1984. Passed and adopted on the following roll call vote: AYES: Councilmembers Griffin, Settle, Dovey, Dunin and Mayor Billig NOES: None ABSENT: None City Council Minutes Tuesday, July 5, 1983 - 7:00 p.m. Page 4 C -10 EXTENSION OF SUBDIVISION AGREEMENT - TRACT 807 On motion of Councilman Griffin, seconded by Councilman Settle, the following resolution was introduced: Resolution No. 5151 (1983 Series), a resolution of the Council of the City of San Luis Obispo approving a six -month time extension of the subdivision agreement for Tract 807 located at 1264 Ella Street and 1257 Iris Street; Merilee Peck, subdivider. Passed and adopted on the following roll call vote: AYES: Councilmembers Griffin, Settle, Dovey, Dunin and Mayor Billig , NOES: None ABSENT: None C -11 WAGE RATE ADJUSTMENT FOR PART -TIME RECREATION PERSONNEL On motion of Councilman Griffin, seconded by Councilman Settle, the following resolution was introduced: Resolution No. 5152 (1983 Series), a resolution of the Council of the City of San Luis Obispo adjusting wage rates for temporary part -time Recreation personnel. Passed and adopted on the following roll call vote: AYES: Councilmembers Griffin, Settle, Dovey, Dunin and Mayor Billig NOES: None ABSENT: None C -12 PERSONNEL BOARD ACTION On motion of Councilman Griffin, seconded by Councilman Settle, the following resolution was introduced: Resolution No. 5153 (1983 Series), a resolution ' of the Council of the City of San Luis Obispo upholding disciplinary action taken by the Personnel Board of John Webb, a Public Works employee. Passed and adopted on the following roll call vote: AYES: Councilmebmers Griffin, Settle, Dovey, Dunin and Mayor Billig NOES: None ABSENT: None C -13 ZONE 9 - AGREEMENT FOR STREAMBED CLEARANCE PROGRAM On motion of Councilman Griffin, seconded by Councilman Settle, the following resolution was introduced: Resolution No. 5154 (1983 Series), a resolution of the Council of the City of San Luis Obispo approving an agreement between the City and the County of San Luis Obispo for streambed cleaning program within city limits. Passed and adopted on the following roll call vote: AYES: Councilmembers Griffin, Settle, Dovey, Dunin and Mayor Billig NOES: None ABSENT: None A D V I S O R Y B 0 D Y A P P O I N T M E N T S A -1 After brief discussion it was moved by Councilwoman Dovey, seconded by Councilman Dunin, to appoint Kevin McReynolds to fill the unexpired term of John Carsel on the Human Relations Commission with term to expire 3/31/84. 1 1 City Council Minutes Tuesday, July 5, 1983 - 7:00 p.m. Page 5 Motion carried on the following roll call vote: AYES: Councilmembers Dovey, Dunin, Griffin, Settle and Mayor Billig NOES: None ABSENT: None P U B L I C H E A R I N G S Mayor Billig declared a recess. 7:10 p.m. the Parking Authority convened in regular session. ROLL CALL '• Commissioners Present: Dovey, Dunin, Griffin, Settle and Chairwoman Billig Absent: None 1. PARKING The Parking Authority held a public hearing to consider a resolution approving an agreement between the SLO Parking Authority and Mann Theatres for lease of space in the parking structure (continued from 5/17/83). Upon suggestion by Chairwoman Billig, it was moved by Commissioner Settle, seconded by Commissioner Dunin, to continue this item with staff directed to•make'necessaty refinements to the project lease and site lease, both leases to be brought back in one package for Council review. Motion carried on the following roll call vote: AYES: Commissioners Settle, Dunin, Dovey, Griffin and Chairwoman Billig 'NOES: None ABSENT: None Chairwoman Billig adjourned the Parking Authority Board at 7:15 p.m. 7:16 p.m. City Council reconvened in regular session. ROLL CALL Councilmembers Present: GlennaDeane Dovey, Ron Dunin, Robert Griffin, Allen K. Settle and Mayor Melanie C. Billig Absent: None 2. APPEAL OF PLANNING COMMISSION DECISION Council held a public hearing to consider an appeal by Thomas J. Lee of a decision by the Planning Commission approving a use permit for a fraternity house located at 280 California Blvd. Toby Ross, Community Development Director, reviewed the council agenda report (file 4407). He stated that the Planning Commission had approved the use permit on June 8, 1983, and earlier at its May 11, 1983 meeting continued the item with direction to redesign the project with a maximum of 19 people and 19 vehicle parking spaces; or eight bedrooms and 16 vehicle parking spaces. The project was granted final approval by the ARC at its June 13, 1983 meeting. Staff and Planning Commission had received a petition and several letters expressing opposition to the project. It was City Council Minutes Tuesday, July 5, 1983 - 7:00 p.m. Page 6 staff's recommendation that the Council adopt the draft resolution to deny the appeal and uphold the Planning Commission's action approving Use Permit U1099. He also suggested that the revised parking plans submitted for the proposed fraternity provided an opportunity to reduce parking impacts. If the fraternity were to use valet parking for scheduled functions at least eight to ten additional cars could be accommodated on -site. He suggested that the Council consider adding the following condition: "The applicants shall prepare a valet parking plan to the satisfaction of the Community Development Department and institute valet parking for any scheduled function held at the fraternity house ". Mayor Billig declared the public hearing open. Thomas J. Lee, 364 Hathway Street and the appellant, stated he appealed the decision with the hopes the Council would look more favorably at the 1 residential area in the neighborhood. He was concerned primarily with: 1) the number of small children in the neighborhood; 2) the excessive traffic; 3) noise; and 4) lack of consideration by fraternity members to the neighbors. Barry Williams, architect representing the applicant, also supported staff's recommended actions to add the valet parking. This location was more suitable for fraternities. He urged Council to uphold the Planning Commission's decision. French Morgan, 258 California Blvd., also spoke in support of the appeal, reminding the Council that the Planning Commission had reached its decision on a split vote. His major concern was the impact on an area that is already heavily impacted by cars, noise, etc. Claire Gates, 14 Hathway Street, reviewed the letter submitted by her and seven other neighbors, which listed six specific reasons for their'neighbor- hood being in opposition of the fraternity: 1) Parking access /exit onto Hathway Avenue as opposed to California Blvd. being inappropriate, irrespon- sible and dangerous. The Hathway -Slack Street area already suffers from major traffic problems that residents have repeatedly brought to city's attention. Until there is a resolution to these major traffic problems, it is improper to consider adding such traffic and parking demands of the fraternity house members, nonresident fraternity house members and their guests. 2) The needs of fraternal organization living situations stand in direct conflict with those of typical single - family neighborhoods. Rather than being judgemental about the activities of these organizations, neighbors believed that city officials needed to acknowledge the conflicts as fact proven by past experiences, and work vigorously with the university so that an on - campus fraternity /sorority row becomes a reality. 3) Plans for this conversion include a tandem parking plan that is in direct conflict with existing city regulations. Maneuvering cars within the parking lot and onto Hathway Avenue will be a potential nuisance to neighbors and could be a source of additional traffic difficulties for Hathway Avenue. 4) No provision had been made for the additional on- street parking that would be created by this project in a neighborhood which is largely posted as "permit only" parking - a remedy from previously resolved parking problems. 5) Plans for this conversion included an outdoor central court area facing toward California Blvd. which has been described as suitable for social gatherings. The limited size of the area made residents skeptical that parties would actually be confined to this area facing California Blvd., rather than spilling over noise and nuisance -wise onto the Hathway parking lot and neighborhood streets. 6) Previous neighborhood difficulties with this particular fraternity also would not encourage a good performance from this group in this neighborhood. Ann Reed, 258 California Blvd., stated she had rented to four students but there are usually at least ten present. This situation would be equally or more compounded. Walt Lambert, in charge of community affairs at Cal Poly, spoke in support of the fraternity. He reminded the Council that the fraternity had lost their last home not due to behavioral problems but.rather that the property had been rezoned. They have very few opportunities of finding additional 1 F 1 City Council Minutes Tuesday, July 5, 1983 - 7:00 p.m. Page 7 places for housing. There have been no formal complaints brought against this fraternity house, and further, he reminded the Council that the opportunity of having a Greek Row at Cal Poly looked extremely bleak. Upon question by Councilwoman Dovey, he stated a group effort was being formed to get the Greek Row going again, but this should not be counted on ,j:fin the near future. ' Bill Shipsey, 795 Lincoln Avenue, spoke in support of the fraternity stating that this chapter had existed for ten years, originally on Buchon Street, and overall there have been very few problems. The group had learned its lessons since the last use permit was rejected. He stated, too, that the traffic would not be so bad as most of the students would be walking to school and carpooling at the very least. He urged the Council to support the fraternity at this location. Steve Sough, secretary for the fraternity, spoke in support of its use permit, stating he had lived there for one quarter and no complaints about noise after a party had been reported. They had offered to clean up and did clean up after a couple of parties. He felt the site was a good one because it was within walking distance to Cal Poly. Upon question, he admitted that students were allowed to drink at the ages of 18 and 19 years old and policing was not done by the fraternity brothers. Frank Paine, 360 Hathway and living across the street, was very concerned about the impact on the area. He stated there were two small children living directly across the street and drinking by the students was also an extreme problem. Martin Cook, 348 Hathway Avenue, was concerned with the R -4 impact on an R -1 /R -2 zoned area. In addition, he was concerned with: 1) the traffic; 2) safety; 3) parking. Should the use permit be upheld, he felt at the very least the city-needed to install another stop sign. He also felt it was extremely unsightly. He questioned whether or not it was the city's responsibility to provide housing for the students or was it Cal Poly's. Kathy-Cook, 348 Hathway Avenue, stated that the traffic patterns currently existing will not allow any additional traffic. This is not a proper use for this neighborhood. Penny Paine, 360 Hathway, felt there were too many students and cars in the neighborhood already, and the cars used excessive speeds. Mayor Billig declared the public hearing closed. Councilman Griffin stated that the city must demonstrate an effort.to work with this fraternity, however, Hathway was currently carrying more than its fair share of traffic. He would be willing to reconsider the project with a new reconfiguration. He was not opposed to the fraternity but would support upholding of the appeal and denying action taken by the Planning Commission. Upon question by Councilman Griffin, Toby Ross responded to the six points in Ms. Gates' letter: 1) regarding access onto Hathway, this was the more logical choice because most of the students do not drive their cars to school which would allow for easier access. 2) Effects on a single- family neighborhood, he stated the R -1 is being considered as a R -2 and there are already two units on that property which exceed the R -1 zone. 3) With regard to tandem parking, it is allowed in the Zoning Regulations for this area. 4) Additional on- street parking, it would be very difficult to add any additional spaces. 5) With regard to a large party being held, he felt this was quite-possible on the current site plan. Other mitigation efforts could be made; i.e. splitting the parking lot into two allowing the traffic to go out on both California and Hathway. t Upon - question, Don Englert, Police Captain,:stated_ that California Blvd. would be more dangerous if traffic were allowed access there. Councilman Griffin stated that the city must demonstrate an effort.to work with this fraternity, however, Hathway was currently carrying more than its fair share of traffic. He would be willing to reconsider the project with a new reconfiguration. He was not opposed to the fraternity but would support upholding of the appeal and denying action taken by the Planning Commission. City Council Minutes Tuesday, July 5, 1983 - 7:00 p.m. Page 8 Councilman Dunin stated that most important is the coexistence between the students and the community. He would support looking for sources to mitigate the problems rather than to keep fighting each other. The problems are much deeper than just this fraternity. He felt a cohesive program needed to be instituted. The drinking problem should be lobbied at the level of Cal Poly. This fraternity has shown a great deal of effort and the property is zoned R -4; it can accommodate 40 students rather than 19. The Hathway neighborhood though is also under pressure. The reconfigura- tion of the lot could help; an exit should be on California Blvd., speed should be addressed. Students have come a long way in trying to cooperate. A hedge and a wall would help to mitigate the noise problem. He suggested allowing the fraternity to open and with traffic being redirected. He would support denial of the appeal and refer the matter back to staff -for further consideration. Councilman Settle stated that the zoning was already R -4 and, therefore, compatible land use. He felt use of fraternity at this location was appropriate but would be willing to refer this to see if the site plan could be revised. Possibly, reconfigurating the building to use as a noise buffer. He would support the Planning Commission's recommendation to allow the fraternity with the traffic access on California Blvd, rather than Hathway Street and direct staff to reverse location of the main house and provide access on California Blvd., and slowing speed. Councilwoman Dovey supported reorientation of the site but not necessarily change the access to California Blvd. She could support a driveway on California Blvd. There are only two zones left for fraternities. A fraternity would be appropriate at this location. She stated all frat- ernities should patrol and control their own members with regard to alco- holic beverages. Mayor Billig stated she could not support this as a high- density area on the site. The area could simply not support it. She would, therefore, support the appeal and again encourage Cal Poly to attempt to address the fraternity problem. Upon question Geoff Grote stated that denial could be made even though the property was zoned R -4 as long as Council could make findings on pages 2 -18. After discussion it was moved by Councilman Griffin, seconded by Councilman Settle, to continue this item for the staff, applicant and appellant to propose a reconfiguration of the site plan to be brought back to Council for approval. Motion carried on the following roll call vote: AYES: Councilmembers Griffin, Settle, Dovey, Dunin and Mayor Billig NOES: None ABSENT: None 3. RECONSIDERATION OF PROPERTY REZONING R1098 Council held a public hearing to reconsider Council action denying request to rezone property at 885 Murray Street from R -1 (Low - Density Residential) to 0 (Office); Tri Counties Blood Bank, applicant. City Clerk reported that a letter had been Gurnee, representing the applicant, stating Blood Bank was withdrawing their request. Council concurred (5 -0). 4. TENTATIVE MAP APPROVAL FOR TRACT 1123 received from Mr. T. Keith that due to timing problems the Council held a public hearing to consider a Planning Commission recommendation to approve the tentative map for Tract 1123 (Alta Vista Woods) creating an 1 1 77 1 �IF_ 1 City Council Minutes Tuesday, July 5, 1983 - 7:00 p.m. Page 9 18 -unit residential air -space condominium located at 395 North Chorro Street; R -4 zone; Richard L. Fisher, subdivider. Toby Ross, Community Development Director, reviewed the Council agenda report (file no. 410 -1123) and stated the Planning Commission on May 11 had recommended Council approve the tentative map on a 7 -0 vote subject to findings and conditions noted in the draft resolution. Staff could support that recommended action with one additional condition to read as follows: "Side yard setbacks shall be increased by two feet (seven -foot minimum to "one =story portion of structure, 11 -foot minimum to two -story portions)." Mayor Billig declared the public hearing open. Sandy Merriam, representing the applicant, stated that his client concurred with staff's recommended action and would urge Council's support. Mayor Billig declared the public hearing closed. On motion of Councilman Settle, seconded by Councilman Griffin, the following resolution was introduced: Resolution No. 5155 (1983 Series), a resolution of the Council of the City of San Luis Obispo approving the tentative map for Tract 1123 as recommended by staff including the additional condition. Passed and adopted on the following roll call vote: AYES: Councilmembers Settle, Griffin, Dovey, Dunin and Mayor Billig NOES: None ABSENT: None 5. FINAL PASSAGE OF ORDINANCE 984 - CONDOMINIUM CONVERSION Council held a public hearing to consider final passage of Ordinance 984, an ordinance revising city regulations governing residential condominium projects (continued from 3/1/83•, 6/7/83 and 6/21/83). Toby Ross, Community Development Director, reviewed the Council agenda report (file no. 423) and stated the Council on June 21 had given the ordinance its first reading. The City Attorney's Office has completed its review and has supported its final passage. Staff would also recommend final approval. Mayor Billig declared the public hearing open. No one spoke for or against the proposed final passage. Mayor Billig declared the public hearing closed. On motion of Councilman Settle, seconded by Councilman Dunin, to give final passage to Ordinance No. 984,for condominium 'conversion:.- -•:rl�- Councilman Dunin also expressed concern that the business community did not come back with any complaints as no one had shown up for either hearing. Councilman Griffin suggested that a testing period be allowed first with possible refinements to be made later. Finally passed on the following roll call vote: AYES: Councilmembers Settle, Dunin, Dovey, Griffin and Mayor Billig NOES: None ABSENT: None 9:05 p.m. Mayor Billig declared a recess. 9:20 p.m. City Council reconvened, all Councilmembers present. City Council Minutes Tuesday, July 5, 1983 - 7:00 p.m. Page 10 7. CHAMBER OF COMMERCE CONTRACTS Council considered resolutions approving agreements with the Chamber of Commerce for a visitors center to perform promotional activities and for the development of new city publications. Geoff Grote, Promotional Coordinating Committee staff member, reviewed the three resolutions and the Council agenda report (file no. 1055) recommending the Council approve the agreement with.the Chamber.of Commerce to operate the visitors center and to.provide promotional services, including production services for new city publications. After brief discussion it was moved by Councilman Griffin, seconded by Councilman.Dunin, the following resolution was introduced:. Resolution No. 5157 (1983 Series), a resolution of the Council of.the City of San Luis Obispo approving an agreement with the Chamber of Commerce for the Chamber to perform certain visitor and tourist information activities.from_a_ chamber - operated visitors center. Passed and.adopted on the following roll call vote: AYES:_ Councilmembers Griffin, Dunin, Dovey, Settle and Mayor Billig NOES: None ABSENT: None On motion of Councilman Settle, seconded by Councilman Dunin, the following resolution was introduced: Resolution No. 5158 (1983 Series), a resolution of the Council of the City of San Luis Obispo approving an agreement.with the Chamber of Commerce to perform promotional services on behalf of the City of San Luis Obispo. Passed and adopted on the following roll call vote: ' AYES: Councilmembers Settle, Dunin, Dovey, Griffin and Mayor Billig NOES: None W*WdVE V� On motion of Councilman Dunin, seconded by Councilman Griffin, the following resolution was introduced: Resolution No. 5159 (1983 Series), a resolution of the.Council.of the City.of San Luis Obispo approving an agreement with the Chamber.of Commerce to provide production.services for.city publications. Passed and adopted on the following roll call vote: AYES: Councilmembers Dunin, Griffin, Dovey, Settle and Mayor Billig NOES: None ABSENT: None 6. ELECTRONIC PBX TELEPHONE SYSTEM Council reviewed proposals for the selection of a vendor to provide.an Electronic PBX Telephone System for all city governmental buildings. Steve Smith, Management Information Committee member, reviewed the Council agenda report (file no. 108) and stated staff's recommended action was for Council to approve American Bell, Inc., as the successful vendor and authorize staff to negotiate a contract for final design and installation of the phone system for city governmental buildings. The resolution also made certain findings that due to the unique and indeterminate nature of the city's requirements for a telephone system pursuant to Section 2950.6 (g) of the Municipal Code, the Council, in the best interest of the city, authorizes the use of a Request For Proposals without formal bid procedures L _J L 1 City Council Minutes Tuesday, July 5, 1983 - 7:00 p.m. Page 11 in the development and acquisition of the telephone system to fulfill the city's needs. He then reviewed seven objectives identified by the Committee as its goal to overcome the limitations-of the city's present telephone system-as follows: 1. Provide sufficient capacity to meet our city's need for six years. 2. Save money through increased productivity and employee costs by combining the multiple types of phone systems throughout the city together with only one operator handling all calls still requiring that service. 3. Allow in -house alterations as growth and organizational changes dictate. 4. Control long distance phone use and provide accounting by department or program. 5. Reduce long distance costs through the automatic joint access and use of Watts (lease call routing). 6. -Reliable maintenance through a skilled and experienced maintenance organization with local spare parts availability. 7. Advanced labor saving functions to improve employee efficiency. He also stated that an additional concern identified by the Committee was the number of systems of the type proposed in use locally. Research showed that American Bell had nine systems in the County, Pacific Telephone one, and Executone none. John Brady, representing American Bell, reviewed his experience with the City'since 1968 and the city's needs and how it's outgrown it. He reviewed three objectives for the new system as follows: 1. It will provide the hub for an "Office -of- the - Future" environment. 2. It will provide cost - effective service for one to five-year-time frames using a system architecture to support your long -term objectives. 3. It will be provided by a local, total- system supplier, capable of providing present and future communications needs under a full service, iron -clad contract. He then reviewed the seven Dimension System benefits: 1. Improves public access to all city functions. 2.' Lower overall costs. 3.• Combines all city telephone systems into one umbrella system. 4. Increases staff productivity. 5. Provides management control of communication costs. 6. Provides a communication hub for: a) electronic mail;.b) data communications; c) energy services control; d) electronic directory. 7. Provided by a single vendor. Sharon Garrett, Attorney with firm of Ogle, Gallo and Merzon and repre- senting Executone, stated she was here to translate Executone's concerns and make Council aware of where she felt ABI did not meet the requirements of the City's needs. She stated there were serious deficiencies in the Request For Proposal and inaccuracies in the summary of the information regarding Executone. Basically, she had four items-to analyze for the 'Council and four primary questions: 1) What are the costs of the various systems? 2) Does the ABI proposal meet the RFP standards and if it does not, are the deviations material? 3) Does the Executone proposal meet the RFP standards and if not; are the deviations material? and 4) How does the Executone plan meet the objectives which the City has set out in a better fashion than ABI's system. She stated the RFP proposal as sent out is not geared specifically to.the existing actual needs of each City department and apparently this is the basis on which the staff decided to go with the RFP rather than a bidding process because they felt it would be impossible to obtain all this information and present-it to bidders. She felt it would have been - possible to work with an independent consultant to develop -either specifications or an RFP which more nearly coincided with the actual needs of the City. For instance, in one.of its early proposals Executone had suggested that there should be a redundancy factor in the system, i.e. electronic systems work off of central processing units and when you have a breakdown in one central processing unit, unlike the electro- mechanical system the City currently has, you have•a breakdown-of the total system City Council Minutes Tuesday, July 5, 1983 - 7:00 p.m. Page 12 rather than individual pieces. Executone had suggested that the RFP include this redundancy requirement. The redundancy requirement did not appear in the RFP although it could have been provided by Executone at an approximate cost of an additional $30,000. This cost was not included in Executone's bid. ABI did not have this redundancy factor and, therefore, if that system were to go down, the Dimension 600 system proposed by ABI does not have the capability of being upgraded to provide the redundancy. It would cost quite a bit more to go with a system to provide this., This is the kind of hidden cost factor in the way the RFP is currently structured. She felt it was unlikely that the City would go with a system which did not provide some kind of backup for the Police and Fire Department lines. In addition, the staff report misinterprets.those cost estimates provided in such a fashion as to make it appear that certain installation costs, which.ABI had set out separate, and which come to a total of $42,000. The statement in the staff report is along the lines that this would be a cost which would be common to all systems. That is a true statement, however, what the report does not point out is that the $42,000 for the ABI instal- lation costs would be in addition to the $45.50 per month which ABI would be charging for the system. In the Executone's proposal that $42,000, or whatever amount estimated, has been included in their monthly amount. ABI's total costs over a six -year period would be $369,000, exclusive of: the monthly line charges to be paid to PT &T. For Executone's proposal with monthly lease payments the total life of the contract cost would be $324,000 as proposed with a savings of $45,000: If the City were to select .the lower annual lease rate, which is available under the Executone proposal, the total cost of the contract over a six -year period would be $311,000, a savings of $58,000. 1. Another major area of concern is in the staff report which indicates the ABI system meets the RFP in all central responses. She stated there were at least two ways in which the ABI proposal did not meet City standards: 1) Backup system: The RFP system calls for a battery - backup system of only two hours so in case of failure the system would operate for a minimum of ' two hours. On page 5 of ABI's proposal they clearly specify that their system provides only eight minutes of power waiting until the City's emergency generator takes over the full operation.. Executone's proposal provides the full minimum of two hours backup power requested in the RFP. If Executone had made a proposal based on an eight- minute backup system, there would have been a savings of approximately $5,000 in the cost of "the contract. The proposals are simply not comparable. 2) Traffic requirement: The RFP specifically calls for the capability for 220 simultaneous conversa- tions within the system. The Executone's proposal met that requirement. However, on page 3 of ABI's proposal in their own words they say, "In regard to the number of conversations which can be made in a single instant the total is 64." Finally the RFP proposal requests the parties to provide a detailed schedule of the implementation of the proposal.. It allowed four days for ABI to collect all of the data from the City which is necessary to design the system. Unless they have had prior access to that information, they contended that four days is simply not adequate. In response to that request, Executone provided six pages of analysis of what would be necessary for the implementation of the proposal. She pointed out a couple inaccur- acies in "the staff report: 1) Regarding service, ABI does not manufacture its own equipment locally, like Executone, it purchases from others;_ therefore, it is dependent upon some kind of a service and repair system which it must provide itself. Executone has technicians in Santa Maria-who are fully factory trained and have certificates. In contrast the status of maintenance and repair technicians at ABI and Pacific Telephone and Telegraph, who had also responded to the proposal, is presently unclear because of the ' divestiture which is occurring on January 1, 1984, and this bit of information is confirmed in Pacific Telephone's own response to the draft report by the staff. It states the judge and the FCC have not yet clarified this-,matter of who is going to have what technicians and what kind of a system and�who can buy from whom. The staff report indicates that Executone does not warrant its product. Executone, like ABI, is essentially a dealer of other people's products. Executone warrants all of its products and provides the trained technicians and has provided a detailed schedule of backup equipment which would be available on- premise for purposes of service. The report City Council Minutes Tuesday, July 5, 1983 - 7:00 p.m. Page 13 also indicates that a call accounting system was requested; however, the RFP did not specify that either party should include in its proposal the actual equipment necessary to provide that service. The capability which is provided by ABI is called a AIOD system, a system in which the information is stored at Pacific Telephone and transmitted to the user once a month unless there is a loop line for which the customer has to pay to provide that system back to the customer. In addition, the information comes unprocessed. It is not broken down as to department, telephone number or ' station. The Executone system in contrast is a system which is on the users premises. The user has complete control.of that system and the information'within. The system will provide 57 different reports. In conclusion, we believe that the'city has a report'which is flawed in its analysis of the information which it'has received. The Information Commit- tee did not take advantage.of Executone's offer to provide a demonstration of an, installed system so that the Committee could see that its system was much easier to use compared to the cumbersome system that ABI has proposed. She stated that Council should send the report back to the Committee and direct them to work with an independent consultant to either develop specific bid specifications which can then be put out for competitive bidding or hire a consultant who can professionally, efficiently and independently analyze all the proposals which have been received. Mayor Billig asked for staff to respond to some'of the comments raised: 1) redundancy factor; 2) current structure of the RFP; 3) monthly concurrence of costs and difference of total cost; 4) battery backup; 5) traffic requirement of the number of calls that can be handled at the same time; 6) schedule for implementation; 7) service; 8) warranty of the system; 9) and adaptability of the entire system. She stated that another comment made by Executone was storage'of records-.on- premise.as.opposed to "I's being stored at Pacific Telephone-and-there isn't:an unscrambling or organization of those messages. She also stated there were several comments that didn't relate to the system at all but related to the process: 1) that Executone wanted to sit down with Committee members and discuss rather than just. ' asking questions and responding over the telephone or pushing pieces of paper; and 2) the availability of information from the Clerk.'s Office. Steve Smith, Management Information Committee member, stated in regard to redundancy of the processors, first.of all;.the processor is the.central brain of the system. Based on the failure rate bf:,processors; in Dimensions case, staff didn't feel there was the probability of it failing versus some of the other equipment'. It was'more probable that other equipment would ,fail and that's true also in the case of.Executone and has been our experience with equipment with Pacific Telephone. With regard to the question raised that the RFP was not geared toward the specific needs of•each.department, he stated that was true in the sense that staff didn't identify which telephone instrument would go on which desk and in which building. Throughout the goals and objectives of the system, staff did combine all of the needs and input from Management Team, department heads, etc., to come.up with a set of features. Upon question with regard to the backup system, Mr. Smith.responded that staff was quite concerned about backup from an emergency stand point especially for the Police and Fire Departments. Staff had initially asked for two hours of backup but based on approvals in this year's budget for replacement of the generating equipment in City Hall, we felt it was no longer an important feature. We.want- the'system:to stay.completely up during a momentary. power.failure- until- the generator_: takes over. _ In. the case of Executone from what was provided in the RFP, it appeared that only ' theii memory stayed up; not the machine itself. With regard to the traffic -requirement:with, the number of simultaneous calls, Mr. Smith stated we are concerned that at any given time we can pick up the phone and get a dial tone no matter how many people are using it. Essentially, staff;-felt that ABI's proposal-met-.our needs in this respect. With regard to ABI's schedule-implementation, he-stated they would meet with the department heads and evaluate exactly what telephone.goes -on what desk; he saw this as being a very short period of time. With regard to service, ABI has technicians in San Luis Obispo that provide service. He City Council Minutes Tuesday, July 5, 1983 - 7:00 p.m. Page 14 stated that he had talked independently with the service technicians, and they replied that out of 24 PBX technicians,.10 of them have already gone to ABI. The remainder are going to retire or go to ABI in January 1984.. With regard to warranty, he stated it was staff's understanding that the maintenance agreement with either company would provide parts at no charge and would require parts replacement. There are two very different approaches to providing this service. In the case of Executone, they wanted..to stock pile what they.deemed to be the key spare parts here...If a piece failed, then they would come up and install a new one, although that was not clear in their proposal. In contrast ABI's approach is that they have assigned an individual to our city. A backup individual would carry a pager and would be available to us on an immediate basis at any time,.24 -hours a.day. Hie stated the Committee_balanced.the advanCages in.technology versus the dependability and reliability of the system. Staff was very concerned about the fact that there were none of the systems proposed by Executone in operation in the Tri- Counties area. They have other systems but none like the one they were proposing here,.in fact, there are only two.in all of California. Staff felt they would go in the direction of reliability. Mr. Smith stated with regard to Executone's concerns about discussing problems face -to -face with the Committee, the Committee didn't feel that it was necessary: The Committee was able to gain the information that was. needed in the environment of the RFP. He did in fact meet with Executone representatives and believed that they also met with other members of the Committee. Wayne Peterson stated that Pam Voges and himself had both seen demonstra- tions at different programs where Executone and PT &T or ABI showed the:,. dimension system and the Executone systems, so they were not completely: unfamiliar with them. Pam Voges, City Clerk, responded with regard to the availability of,infor- mation from the Clerk's Office, that the information has always been public ' information. The Clerk's Office had contacted Executone to let them know that they could come in and review all of the proposals. She did not remember a request for copies. The Clerk's Office did get a call from Executone's attorney this afternoon requesting copies, and we made.copies immediately. They could have had it sooner if they had requested it. John Brady, representing American Bell, Inc., regarding the redundancy issue, stated that he had installed at least 20 of these systems in munici- palities and counties throughout the state,.none of which have redundancy or suffered a loss of system due to processor failure. With regard to storage of information,.Mr. Brady stated that ABI is merely providing a machine that has the capability to where all of the long- distance calls that are made will be itemized by telephone and which was asked by the city specifically in the RFP. They asked for automatic identification of outward dialed called, which is AIOD. They don't do any storage at all, it simply comes with the telephone bill. They provide a pass- through like any other system would do. Executone.chose not to respond in that manner, but rather with an on- premises device that.provided the same function. Dave Ion, Management Information Committee member,-apologized for the lack of continuity because the financial evaluation was performed by Rudy.. He stated that the estimation of $17,000 for Pacific Telephone connections would be common to any independent system is a true statement. In Executone's proposal they have included the installation in their monthly lease costs and that is taken into account for amortized installation and amortized PT &T line installation costs. With regard to the cost of the system, Mr. Ion responded that in looking at the financial evaluation of total monthly costs, Pacific Telephone had the lowest monthly cost over the 72 months. There are many.factors other than cost that influence the decision. City Council Minutes Tuesday, July 5, 1983 - 7:00 p.m. Page 15 Brad Schram, Account Executive with Pacific Telephone, brought out five points: 1. System must be workable.. 2. Must be good for six years. 3. Pacific Telephone would be the only single vendor that has only one system in SLO County because their building is adjacent to City Hall and there would always be somebody available. 4.. In reviewing the dollars he felt that Pacific Telephone was lower. 5. Security, ABI could not provide a two hour backup, and Pacific Telephone could. Councilman Dunin was pleased with the amount of material that had been submitted by Committee members and after review he was extremely gratified that a consultant had not been required and it proved that in -house personnel was able to define and tackle a very difficult project. Councilman Settle after hearing the responses by staff stated he could support the recommended action. Councilwoman:Dovey agreed.with.the'comments by Councilman Settle: The material•available had been extensive and staff had done a thorough job of analyzing and making their recommendations. Mayor Billig agreed, stating that this was the most amount of work and backup material the she could remember having seen on a project such as this, thanking staff and particularly the sub - committee. After brief discussion, it was moved by Councilman Griffin, seconded by Councilman Settle, the.following.resolution , be introduced:: Resolution No. 5156 (1983 Series), a resolution of the Council of the City of San Luis Obispo designating American Bell as the successful vendor -to provide telephone system for-city governmental buildings and.staff directed to 1 negotiate with ABI on final design and construct' contract with final contract to be approved by Council. Passed and adopted on the following roll call vote: AYES: Councilmembers Griffin, Settle, Dovey, Dunin and Mayor Billig NOES: None ABSENT: None C O M M U N I C A T I O N S C -1 Councilman`Settle notified Council that the Quarterly League of California Cities meeting will be held Friday, July 15 at Lompoc. If any Councilmembers were interested in attending, they should confirm with the Administration Department. C -2 After brief discussion, Council agreed that an interaction should exist between the city and the California Mens' Colony in an effort to keep the lines of communication open. C -3 After brief discussion, Mayor was authorized to send a letter to John Anderson who represented the Masonic Lodge to welcome its convention in 1984 or 1985. 1 There being no further business to come.before the City Council, Mayor Billig adjourned the meeting at 11:15 p:m. to T,nesday, July 6, 1983 at 12:00 noon for a closed session. / / 1 S, APPROVED BY COUNCIL: 11/1/83