HomeMy WebLinkAbout05/08/1990213
City Council Minutes Page 2
Tuesday, May 8, 1990 - 4:00 amd 7:00 p.m.
Presentation was made by Mike Spangler, partner with H2O Organisation, who
submitted -a water analysis showing that desalination would be a viable option
(please see Subject File No. 517 for a copy of the specific recommendations
and report analysis).
Mike Peterson, with P.O. 6 E., also made a presentation showing how Pacific
Gas.and Electric Co. has successfully used desalination for their own needs..
The desalination plant at Diablo supplies 258 of their energy requirements, at
an approximate cost of $1500 to $1600 per square foot, excluding land and
structure. He felt although a joint venture was possibile, P.O. & E. had not
previously exercised further development of this resource due to the political
environment.
Jay Moran, with Black & Veatch, also made a presentation regarding
desalination, identifying costs and various pros and cons for its use.
Mayor Dunin asked for public comment.
Don Smith spoke in support of the City evaluating desalination.
Jim Philbin suggested the City look at treating its effluent as opposed to
desalination.
Brett Cross, 1217 Mariner's Cove, urged that Council look at these other
alternatives for water resources.
Mayor Dunin closed the public hearing.
After discussion, moved by Roalman /Pinard (4 -0 -1, Councilwoman Rappa absent)
that staff be authorized to solicit requests for proposals for professional
engineering services for evaluation desalination as a viable option to
augmenting current water supplies with minor amendments as proposed this
evening.
2. GROUNDWATER DEVELOPMENT PROGRAM PHASE II (File No. 511)
Council held a public hearing to consider appropriating funds in the amount of
$110,000 from the Water Fund Capital Control Acccount to complete Phase II of
the Groundwater Development Program.
Allen Short, Water Division Manager, reviewed the agenda report with the
recommendation that Council, by motion, approve the appropriation as
recommended in the staff report.
Mayor Dunin asked for public comment.
No one spoke for or against.
Mayor Dunin closed the public hearing.
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City Council Minutes
Tuesday, May 8, 1990 - 4:00 and 7:00 p.m.
Page 3
Moved by Roalman /Reiss (4 -0 -1, Councilwoman Rapper absent) to appropriate
$110,000 from the water Fund Capital Control Account to complete the
Groundwater Development Program Phase II as recommended.
3. UTILITY CUSTOMER BILLING SYSTEM (File No. 294)
Council held a public hearing to consider monthly billing cycle and amendments
to 1989 -91 Financial Plan.
Bill Statler, Director of Finance, reviewed the agenda report with the
recommendation that Council adopt the resolution implementing a monthly
utility billing cycle at an estimated net annual cost of $147,600.00; amend
the 1989 -91 Financial Plan to reflect the change; and approve the transfer of
billing responsibilities for residential refuse collection services to San
Luis Garbage Company per their request. Conversion from a bi- monthly to a
monthly billing cycle, he felt would, a) more appropriately reflect the cost
of water and sewer services in comparison with other utility services which
are billed monthly, b) reduce the impact of the City's combined utility
billing on the customers by spreading the payment over 12 rather than 6
payments per year, c) support the City's water conservation efforts by
providing usage information on a more timely basis to customers and staff, and
d) improve the financial position of the City's water operation through
enhanced cash flow and improved delinquency collection.
Mayor Dunin asked for public comment.
Don Smith spoke in opposition to the change in cycles. He felt that the
current policy is more cost effective.
Jim Anderson, 671 Serrano Drive, took exception to the recommendations as they
related to increasing staff.
Amy Arsenio, 2053 Hay Street, agreed with comments by Mr. Anderson and could
not support the recommendation.
Phil Johnson, San Luis Obispo, opposed the recommended actions.
Charles Long, 639 Al -Ril Drive, spoke in opposition.
Mayor Dunin declared the public hearing closed.
After discussion moved by Roalman /Reiss (4 -0 -1, Councilwoman Rappa absent) to
keep the billing period as it currently exists.
Moved by Roalman /Reiss (4 -0 -1, Councilwoman Rappa absent) to approve the staff
recommendation to transfer the billing responsibilities for residential refuse
collection services to San Luis Garbage Company as recommended in the staff
report. Motion carried unanimously.
6:25 p.m., Mayor Dunin declared a recess; 7:00 p.m., City Council reconvened,
Councilwoman Rappa absent.
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City Council Minutes Page 4
Tuesday, May 8, 1990 - 4:00 and 7 :00 p.m.
4. STATUS OF WATER AND WASTEWATER PROJECTS (File No. 511)
Council considered a report by staff on the status of major water projects
including Salinas Reservoir Expansion, Water Treatment Plant Upgrade and
Groundwater and the Wastewater Management Program.
Bill Hetland, Utilities Director, reviewed the agenda report with the
recommendation that Council, by motion, receive and file the report on the
Water and Wastewater Project Status and provide staff direction as necessary
(please see File No. 511 for specific status). He then introduced Noel Wong
and Jay Hesbee, who gave brief presentations and updates on raising the
elevation of Salinas Dam, and the Water Treatment Plant upgrade projects.
After brief discussion and upon general consensus (4 -0 -1, Councilwoman Rappa
absent) this item was received and filed.
5. REVENUE RATE REQUIREMENTS FOR WATER AND SEWER FUNDS (File No. 512)
Council considered specific revenue requirements for operation and maintenance
needs, drought related costs and future capital improvement projects.
John Dunn, City Administrative officer, provided an overview of the City's
current water statis. Be stressed that water is one of our most basic
commodities. He felt that the City had a moral responsibility to provide
sufficient, high quality water to its citizens. The water treatment plant is
30 years old and needs modernisation. Many of our water mains are
deteriorated and need replacement, and the groundwater well development
program is an excellent but expensive program. Only a very samll percentage
of the proposed water rate increase.is due to selling less water because of
the drought situation. The Council has established the policy that the water
and sanitary sewer systems should be self = supporting. That policy is wise
because the General Fund cannot support both City operations and utility
services. Basically, the water system needs sufficient money to survive and
therefore urged the Council to support the 59 percent increase.
Bill Hetland, Utilities Director, reviewed the agenda report with the
recommendation that Council, by motion, receive the report on Water and
Wastewater requirements and direct staff to return with appropriate rate
ordinances and resolutions that would incorporate the following concepts:
1) Water rate increase of 62% (this was amended to 59% after the action
taken in Item #3) effective June 1, 1990. An additional rate increase may be
required June 1, 1991, depending on the City's water supply situation.
2) Water connection fee increase from the current fee of $345.00 per single
family connection to $1,500.00 per single family connection effective June 1,
1990.
.I
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City Council Minutes Page 5
Tuesday, May 8, 1990 - 4s00 and 7:00 p.m.
3) Wastewater rate increase of $7.00 per month effective June 1, 1990,.and �•
an additional $7.00 per month each June for the next four years ($8.50 to
$16.50).
4) Establish a wastewater connection fee of $1,950.00 per single family
connection.
Mavor.Dunin asked for public comment.
Gary Kunkel, 719 Cuesta, spoke in support of the City's obtaining additional
water resources.
Richie Ray Walker, La Entrada, was opposed to allowing additional development
while the City is in a drought.
Jim Markle called for a building moratorium, and was not supportive of most of
the capital improvement projects currently proposed or approved.
Jerry Bonn, pleased that Council was not hiring additional staff, was
supportive of the higher connection fee.
Amy Arsenio, 2053 Hay Street, urged Council adopt a drought policy.
Allan Freidman, 3131 Rockview, opposed to any additional growth in the City.
8:45 p.m., Councilman Reiss left the dais; 8:55 p.m., Councilman Reiss
returned to the dais.
Charles Long urged additional water supplies.
Don Smith did not support the rate increase, as he felt it was a penalty for
those who bad been conserving water.
Bernard Hartley also urged against the rate increase, felt it was an economic
hardship to those on fixed incomes and was unfair.
LaVerne Schneider opposed the rate increase, urged that Cal Poly and Cuesta
College rates be reviewed and increased.
Sally Jo Rims, 805 Lima, opposed the water increase.
Rita Romwell was frustrated with the proposed increased billings and higher
rates.
Jerry Bonn, again spoke against the increase.
Ed Markham spoke in opposition to the rate increase.
Mavor Dunin closed the public comment.
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City Council Minutes Page 6
Tuesday, May 8, 1990 - 4:00 and 7:00 p.m.
Councilman Roalman stated that he could support the 598 sncrease, felt it was
necessary to meet the current City revenue demands.
Councilwoman Pinard felt the City was in this position becauast of continuing
to exceed the safe annual yield time after time. She could n:._. support rate
increase.
Councilman Reiss said he could support the operation maintenance cc:`, but was
opposed to the significant increased rates. He suggested taking some t -2e
General Fund a temporary measure.
Councilman Dunin stated he could support utilizing the utility tax. He
wouldn't be able to support a rate increase for the 148 deficit as a direct
result of the water conservation effort. He felt that was penalising the rate
payers.
After discussion, moved by Mayor Dunin to support the proposed rate increase
of 598, with 508 to be paid from the General Fund and utility tax with the
remainder to be in the form of a rate increase. Notion failed for lack of a
second.
Then moved by Mayor Dunin that the enterprise policy be suspended
indefinitely. Motion failed for lack of a second.
After additional discussion it was moved by Reiss / Dunin (3 -1 -1, Councilman
Roalman voting no, Councilwoman Rappa absent) that staff be directed to report
back on the consequences of going outside of the Water Fund Enterprise account
for additional revenue sources; recommend a list of capital improvement
projects that might be cut or deferred, and review deferral of some of the
rate increases brought on by water conservation. Motion carried.
Moved by Pinard /Dunin (4 -0 -1, Councilwoman Rappa absent) that the issue of
retrofitting for credit be reconsidered. Notion carried.
Moved by Pinard /Dunin (4 -0 -1, Councilwoman Rappa absent) to give conceptual
approval of staff's recommendations numbers 2, 3, and 4, to: a) increase
water connection fees from the current fee of $345.00 per single family
connection to $1500.00 per single family connection; b) increase wastewater
rates to $2.00 per month with additional $2.00 per month each year for four
years ($8.50 to $16.50); and c) establish a wastewater connection fee of
$1,950.00 per single family connection. Notion carried.
6. MANDATORY DEFERRAL OF LANDSCAPE INSTALLATION AND RETROFIT (File No. 517)
Council considered an urgency water conservation ordinance amending the
retrofit upon sale or transfer ordinance and a resolution establishing
deferral of new landscape planting during mandatory water conservation.
Moved by Roalman /Pinard (4 -0 -1, Councilwoman Rappa absent) to continue this
item to date uncertain.
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City Council Minutes Page 7
Tuesday, May 8, 1990 - 4:00 and 7:00 p.m.
There being no further business to come before the City Council, MaZor Dunin
adjourned the meeting at 10:05 p.m. to Monday, May 14, 1 90 at 12-10 P.M.
APPROVED BY COUNCIL: 6/19/90 0--2, U, � _
PV:nlo Pas:, Voges, City
------------=-------- - - - ° --
M I N U T E S
CLOSED SESSION OF THE CITY COUNCIL
MONDAY, NAY 14, 1990 - 12s10 P.M.
COUNCIL HEARING ROOM - CITY HALL - 990 PALM STREET
SAN LUIS OBISPO, CALIFORNIA
ROLL CALL
Councilmembers
Present: Vice -Mayor Jerry Reiss, Councilmembers Penny Rappa, Bill
Roalman and Mayor Ron Dunin
Absent: Councilmember Peg Pinard
City Staff
Present: John Dunn, City Administrative Officer, and Ann McPike,
Personnel Director
CLOSED SESSION
12:10 p.m., Mayor Dunin adjourned the City Council to Closed Session to review
and discuss with the City Administrative Officer goals and objectives for six
month period ending 4/2/90 and proposed goals through 10/1/90.
There being no further business to come before the City Council, Mayor Dunin
adjourned the meeting at 1:25 p.m. n P
APPROVED BY COUNCIL: 6/19/90
PV :nlo
M I N U T E
REGULAR MEETING OF THE
CITY OF SAN LUIS
TUESDAY, MAY 15, 1990
COUNCIL CHAMBERS - CITY HATS
SAN LUIS OBISPO, C
ROLL CALL
Councilmembers
Voges, Citk Clerk
S
CITY COUNCIL
OBISPO
7:00 P.M.
990 PALM STREET
kLIFORNIA
Present: Vice -Mayor Jerry Reiss, Councilmembers Peg Pinard, Penny
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