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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. 214 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. 215 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 216 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. 217 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. 218 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 1