HomeMy WebLinkAbout07-21-2015 C2 Minutes
City of San Luis Obispo, Council Agenda, City Hall, 990 Palm Street, San Luis Obispo
Tuesday, June 16, 2015
Regular of the City Council
CALL TO ORDER
A Regular Meeting of the San Luis Obispo City Council was called to order on Tuesday, June
16, 2015 at 6:00 p.m. in the Council Chambers, located at 990 Palm Street, San Luis Obispo,
California, by Mayor Marx.
ROLL CALL
Council Members
Present: Council Members Dan Carpenter, Carlyn Christianson, Dan Rivoire, Vice Mayor
John Ashbaugh, and Mayor Jan Marx.
Council Members
Absent: None
City Staff
Present: Katie Lichtig, City Manager; Christine Dietrick, City Attorney; Michael Codron,
Assistant City Manager; and Anthony Mejia, City Clerk; were present at Roll
Call. Other staff members presented reports or responded to questions as indicated
in the minutes.
PLEDGE OF ALLEGIANCE
Council Member Carpenter led the Pledge of Allegiance.
APPOINTMENT
A1. APPOINTMENTS TO THE MASS TRANSPORTATION COMMITTEE (MTC),
PROMOTIONAL COORDINATING COMMITTEE (PCC), AND TOURISM
BUSINESS IMPROVEMENT DISTRICT BOARD (TBID)
City Clerk Mejia reviewed the contents of the Council Agenda Report.
MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY VICE MAYOR
ASHBAUGH, CARRIED 5-0, to:
1. Confirm the appointment of Louise Justice to the Mass Transportation Committee
(Member-at-Large representative) to complete an unexpired term through March 31,
2019.
(Council action continued on next page)
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2. Confirm the appointment of Diego-Christopher Lopez to the Mass Transportation
Committee (alternate representative) to complete an unexpired term through March
31, 2018.
3. Confirm the appointment of Patricia Loosey to the Promotional Coordinating
Committee to complete an unexpired term through March 31, 2019.
4. Confirm the appointment of LeBren Young-Harris to the Tourism Business
Improvement District to complete an unexpired term through March 31, 2017.
PUBLIC COMMENT
Rigo Diaz, San Luis Garbage, announced that the annual Spring clean-up will be during the
week of June 29, 2015, encouraging residents to schedule special bulkly item pick-ups.
Dia Hurd, San Luis Obispo, expressed disappointment that the water rate item was agendized at
the end of the City Council meeting, opining that two notices were sent setting an expectation
that the meeting would start at 6:00 p.m.
Susie Link, San Luis Obispo, voiced concerns that water rates are increasing and that important
matters are agendized at the end of the City Council meeting.
Donald Hedrick, San Luis Obispo, urged the City to defend the rights of citizens and to uphold
the U.S. Constitution, opining that the government is not transparent.
CONSENT AGENDA
Donald Hedrick, San Luis Obispo, requested that Items C12, C13, and C14 be pulled for
individual roll call votes; opined that second reading of ordinances should not be placed on the
consent agenda.
MOTION BY VICE MAYOR ASHBAUGH, SECOND BY COUNCIL MEMBER
CHRISTIANSON, CARRIED 5-0, to approve Consent Calendar Items C1 thru C14, with the
removal of Items C7 and C11 for separate consideration.
C1. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES
MOTION BY VICE MAYOR ASHBAUGH, SECOND BY COUNCIL MEMBER
CHRISTIANSON, CARRIED 5-0, to waive reading of all resolutions and ordinances as
appropriate.
C2. MINUTES OF THE CITY COUNCIL MEETINGS OF MAY 19, MAY 21, AND
MAY 29, 2015
MOTION BY VICE MAYOR ASHBAUGH, SECOND BY COUNCIL MEMBER
CHRISTIANSON, CARRIED 5-0, to approve the Minutes of the City Council meetings of
May 19, May 21, and May 29, 2015.
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C3. WATER RECOURSES RECOVERY FACILITY PROJECT PHASES 2 AND 3
PROGRAM MANAGEMENT
MOTION BY VICE MAYOR ASHBAUGH, SECOND BY COUNCIL MEMBER
CHRISTIANSON, CARRIED 5-0, to authorize the City Manager to execute a contract with
Water Systems Consulting, Inc., for program management of Phases 2 and 3 of the Water
Resource Recovery Facility Project for an amount not to exceed $2,311,000 after adoption of
the 2015-17 Financial Plan.
C4. AFFORDABLE HOUSING FUND LOANS FOR 1379 SYDNEY STREET, 860
HUMBERT AVENUE, AND 3680 BROAD STREET - RESOLUTION
MOTION BY VICE MAYOR ASHBAUGH, SECOND BY COUNCIL MEMBER
CHRISTIANSON, CARRIED 5-0, to adopt Resolution No. 10632 (2015 Series) entitled
“A Resolution of the City Council of the City of San Luis Obispo, California, approving
affordable housing fund locals for HASLO (1379 Sydney), HASLO (860 Humbert) and
HASLO/For the Future Housing (3680 Broad).” (This resolution will approve Affordable
Housing Fund loans in the amount of $95,814 for rehabilitation of transitional housing
located at 1379 Sydney Street; $352,029 for acquisition of property for an affordable
housing project at 860 Humbert Avenue; and $920,000 to assist with construction of a 46
unit affordable housing project at 3680 Broad Street.)
C5. CITY WAYFINDING SIGNS – PHASE 1, SPECIFICATION NO. 90740C
MOTION BY VICE MAYOR ASHBAUGH, SECOND BY COUNCIL MEMBER
CHRISTIANSON, CARRIED 5-0, to:
1. Approve plans and specifications for the "City Wayfinding Signs - Phase 1,
Specification No. 90740C,” and authorize staff to advertise for construction bids.
2. Authorize the City Manager to award a contract, including or omitting the additive
alternates, if the total of the bid plus the contingency is within the available
Wayfinding Program budget at time of award.
C6. 2015 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT
PROGRAM APPLICATION
MOTION BY VICE MAYOR ASHBAUGH, SECOND BY COUNCIL MEMBER
CHRISTIANSON, CARRIED 5-0, to:
1. Authorize staff to submit an application for a 2015 Edward Byrne Memorial Justice
Assistance Grant in the amount of $10,200 to purchase replacement furniture for the
Police Department’s Training Room.
2. If the grant is awarded, authorize the City Manager to execute necessary grant
documents and direct the appropriation of monies into the accounts required to
administer the grant.
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C7. UTILITIES DEPARTMENT REFURBISHMENT AT 879 MORRO STREET
In response to Council inquiry, Utilities Director Mattingly advised that the proposed
refurbishment of 879 Morro Street is necessary to address Americans with Disabilities
Act (ADA) requirements, poor lighting, damaged caused by past flooding, and lack of
available office space; noted that the cost of the remodel will be split between the Water
Fund and Sewer Fund.
MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY VICE MAYOR
ASHBAUGH, CARRIED 4-1 (COUNCIL MEMBER CARPENTER VOTING NO), to
approve a new Capital Improvement project for “Utilities Department Refurbishment”
Specification No. 91362.
C8. AUTHORIZE GRANT APPLICATIONS FOR OPEN SPACE ACQUISITION -
RESOLUTION
MOTION BY VICE MAYOR ASHBAUGH, SECOND BY COUNCIL MEMBER
CHRISTIANSON, CARRIED 5-0, to:
1. Authorize Natural Resources Protection Program staff to prepare and submit grant
applications for Open Space Acquisition, in general, and authorize the Mayor, City
Manager or designee to execute grant application-related documentation required by
prospective grant making entities.
2. Adopt Resolution No. 10633 (2015 Series) entitled “A Resolution of the City Council
of the City of San Luis Obispo, California, approving the application for grant funds
for the Environmental Enhancement and Mitigation (EEM) Program.”
C9. PUBLIC SAFETY RADIO SYSTEM MAINTENANCE AND SUPPORT
CONTRACT WITH TAIT COMMUNICATIONS
MOTION BY VICE MAYOR ASHBAUGH, SECOND BY COUNCIL MEMBER
CHRISTIANSON, CARRIED 5-0, to:
1. Approve a sole-source contract award to Tait Communications in the amount of
$25,831 per year for a five-year maintenance and support contract to maintain the
City’s public safety radio system contingent upon the adoption of the 2015-16 budget.
2. Authorize the Finance and Information Technology Director to execute contract
documents including the extension of the agreement for each of the following four
years.
C10. REFUNDING OF THE NACIMIENTO WATER PROJECT REVENUE BONDS -
RESOLUTION
MOTION BY VICE MAYOR ASHBAUGH, SECOND BY COUNCIL MEMBER
CHRISTIANSON, CARRIED 5-0, to adopt Resolution No. 10634 (2015 Series) entitled
“A Resolution of the City Council of the City of San Luis Obispo, California, in
connection with the refunding of the Nacimiento Water Project Revenue Bonds,
approving certain disclosure regarding the City and authorizing certain actions in
connection with such refunding.” C2-4
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C11. LIMITATION OF OUTDOOR IRRIGATION OF ORNAMENTAL
LANDSCAPING OR TURF WITH POTABLE WATER TO TWO DAYS A WEEK -
RESOLUTION
Following clarification, MOTION BY MAYOR MARX, SECOND BY VICE MAYOR
ASHBAUGH, CARRIED 5-0, to adopt Resolution No. 10635 (2015 Series) entitled “A
Resolution of the City Council of the City of San Luis Obispo, California, implementing
mandatory restrictions on outdoor irrigation of ornamental landscapes or turf with potable
water,” with the following revision:
a. Section 3 (Effective Date and Term) to read as “The effective date of this Resolution
is July 16, 2015. This Resolution shall remain in effect until the State Water Board
rescinds or allows expiration of the Emergency Regulations and the City Council
formally rescinds its Drought Emergency declaration.”
C12. ORDINANCE NO. 1619 (SECOND READING) – AMENDING CHAPTER 13.07 OF
THE MUNICIPAL CODE RELATING TO WATER CONSERVATION
MOTION BY VICE MAYOR ASHBAUGH, SECOND BY COUNCIL MEMBER
CHRISTIANSON, CARRIED 5-0, to adopt Ordinance No. 1619 (2015 Series) entitled
“An Ordinance of the City Council of the City of San Luis Obispo, California, amending
Section 13.07.030 of the San Luis Obispo Municipal Code regarding restrictions on
outdoor irrigation of ornamental landscapes or turf with potable water.” (Intro. on
06/02/2015)
C13. ORDINANCE NO. 1618 (SECOND READING) – AMENDING CHAPTER 3.24,
ARTICLE I, OF THE MUNICIPAL CODE TO ADD LANGUAGE TO
PURCHASING POLICIES
MOTION BY VICE MAYOR ASHBAUGH, SECOND BY COUNCIL MEMBER
CHRISTIANSON, CARRIED 5-0, to adopt Ordinance No. 1618 (2015 Series) entitled
“An Ordinance of the City Council of the City of San Luis Obispo, California, amending
Municipal; Code Chapter 3.24, Article I, to add language to purchasing policies
governing emergency purchasing, hiring on-call consultants, and environmentally
preferred purchases.” (Intro. on 06/02/2015)
C14. ORDINANCE NO. 1617 (SECOND READING) – ADDING CHAPTER 8.06 TO
THE MUNICIPAL CODE REGULATING EXPANDED POLYSTYRENE FOOD
CONTAINERS AND PRODUCTS
MOTION BY VICE MAYOR ASHBAUGH, SECOND BY COUNCIL MEMBER
CHRISTIANSON, CARRIED 5-0, to adopt Ordinance No. 1617 (2015 Series) entitled
“An Ordinance of the City Council of the City of San Luis Obispo, California, adding
Chapter 8.06 to the San Luis Obispo Municipal Code regulating expanded polystyrene
food containers and products.” (Intro. on 06/02/2015)
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PUBLIC HEARING
PH1. PRELIMINARY 2015-17 FINANCIAL PLAN
A. Parking Fund Review
Public Works Director Grigsby, Administrative Analyst Betz, and Assistant to
Parking Manager Fuchs narrated a PowerPoint presentation entitled “Parking Fund
Review” and responded to Council inquiries.
Mayor Marx opened the Public Hearing.
Harry Busselen, San Luis Obispo voiced concern that the Palm Street parking
structure stalls are too narrow, pointing out that his car was previously damaged;
opined that the rooftop parking stalls should be widened to accommodate oversized
vehicles.
In response to public comment, Public Works Deputy Director Bochum explained
that the parking stalls meet the City’s engineering design standards.
There being no others desiring to speak on this item, the Public Hearing was closed.
MOTION BY VICE MAYOR ASHBAUGH, SECOND BY COUNCIL MEMBER
CHRISTIANSON, CARRIED 5-0, to:
1. Review and accept the 2015-16 Parking Fund financial review.
2. Conceptually approve the Parking Enterprise Fund budget of 2015-16 with final
action on June 23, 2015 with the adoption of the 2015-17 Financial Plan.
3. Introduce Ordinance No. 1620 (2015 Series) entitled “An Ordinance of the City
Council of the City of San Luis Obispo, California, amending Exhibit “A” in
Section 10.52.010 (Parking Meter Zone-Rates) of the San Luis Obispo Municipal
Code.” (This ordinance would allow for an increase in parking meter rates to
$1.50/hour at credit card capable meters relocated from surface parking lots 2, 3,
and 11.)
4. Adopt Resolution No. 10636 (2015 Series) entitled “A Resolution of the City
Council of the City of San Luis Obispo, California, approving an increase to the
Parking Structure Rates and repealing prior resolutions,” effective August 1,
2015.
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B. 2015-17 Transit Enterprise Fund Review
Public Works Director Grigsby, Transit Manager Anguiano, and Administrative
Analyst Betz narrated a PowerPoint presentation entitled “Transit Fund Review” and
responded to Council inquiries.
Mayor Marx opened the Public Hearing.
Donald Hedrick, San Luis Obispo, opined that the City should not use bus benches
that have rivets on the seats; recommended that Council consider relocating the transit
center within a parking structure, noting that it will add convenience to commuters.
There being no others desiring to speak on this item, the Public Hearing was closed.
Following discussion, MOTION BY VICE MAYOR ASHBAUGH, SECOND BY
COUNCIL MEMBER CHRISTIANSON, CARRIED 5-0, to:
1. Review and accept the 2015 Transit Enterprise Fund Review.
2. Conceptually approve the 2015-16 Transit Enterprise Fund budget, with final
action on June 23, 2015 with the adoption of the 2015-17 Financial Plan.
Council reordered the agenda to consider PH1-D before PH1-C.
D. 2015-16 Water Fund Review and 2015-17 Water Rate Adoption
Utilities Director Mattingly and Utilities Business Manager Elke, and Utilities
Services Technician Boerman narrated a PowerPoint presentation entitled “Enterprise
Fund Review and Water/Sewer Rate Reviews” and responded to Council inquiries.
Mayor Marx opened the Public Hearing.
Harry Busselen, San Luis Obispo, spoke about water rates in the City; recommended
that every household in the City pay a separate fixed rate fee for water meter
maintenance; opined that there is an ongoing issue in replacing old pipes in the
ground due to water leakage.
Sally Erwin, San Luis Obispo, voiced objection to the increase in water rates;
suggested that the rate increase be placed on a future election as a ballot measure,
asserting that many residents discarded their protest ballot forms.
Joan Judson, San Luis Obispo, spoke against the addition of a drought surcharge;
suggested that the City conduct an extended outreach program to inform residents on
the importance of water conservation; opined that the City did not provide adequate
notice regarding the proposed rate increase.
Janice Scott, San Luis Obispo, suggested that rebates be made available for residents
who meet water conservation expectations; recommended that hotels and health clubs
install automatic shower shutoff systems.
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Donald Hedrick, San Luis Obispo, voiced opposition to the addition of a drought
surcharge; suggested that fluoride not be added to drinking water, noting that
European countries do not add it; opined that geoengineering and chemtrails are
causing the drought.
David Lamb, San Luis Obispo, requested that Council adopt a lower base fee and add
more payment tiers; voiced objection to the proposed water rate increase and drought
surcharge.
There being no others desiring to speak on this item, the Public Hearing was closed.
City Clerk Mejia reported a total of 837 written protests were submitted, of which
729 were validated in advance of the public hearing and 3 un-validated protests were
received at the public hearing; advised that based on the total percentage needed, this
does not amount to a legally sufficient protest.
In response to public comment, Utilities Director Mattingly explained the Proposition
218 noticing requirements, noting that the City sent notices to account holders and
property owners 45 days in advance of the public hearing.
Following discussion, MOTION BY MAYOR MARX, SECOND BY COUNCIL
MEMBER CHRISTIANSON, CARRIED 4-1 (COUNCIL MEMBER CARPENTER
VOTING NO), to:
1. Approve the release of certain previously approved Capital Improvement Projects
and return these appropriations to working capital in 2014-15.
2. Authorize the amendment of the Water Enterprise Fund 2014-15 budget to reflect
the revised values shown in the fund review documents.
3. Review and approve the 2015-16 annual Water Fund financial review.
4. Conceptually approve the 2015-16 Water Fund budget, with final action on June
23, 2015, with the adoption of the 2015-17 Financial Plan.
5. Adopt Resolution No. 10637 (2015 Series) entitled “A Resolution of the City
Council of the City of San Luis Obispo, California, establishing the water rates
and drought surcharge.” (This Resolution would increase the water base fee and
adding a drought surcharge associated with both the water base fee and
volumetric rates, effective July 1, 2015 and July 1, 2016.)
6. Authorize the Utilities Director to lower the drought surcharge, should revenue
amounts come in higher than anticipated.
RECESS
Council recessed at 8:37 p.m. and reconvened at 8:54 p.m., with all Council Members present.
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C. 2015-16 Sewer Fund Review and 2015-17 Sewer Rate Adoption
Utilities Director Mattingly, Utilities Business Manager Elke, and Utilities Services
Technician Boerman narrated a PowerPoint presentation entitled “Enterprise Fund
Review and Water/Sewer Rate Reviews” and responded to Council inquiries.
Mayor Marx opened and closed the Public Hearing, there being no others desiring to
speak on this item.
City Clerk Mejia reported a total of 837 written protests were submitted, of which
740 were validated in advance of the public hearing and 3 un-validated protests were
received at the public hearing; advised that based on the total percentage needed, this
does not amount to a legally sufficient protest.
Following discussion; MOTION BY VICE MAYOR ASHBAUGH, SECOND BY
COUNCIL MEMBER CHRISTIANSON, CARRIED 4-1 (COUNCIL MEMBER
CARPENTER VOTING NO), to:
1. Review and approve the 2015-16 annual Sewer Fund financial review.
2. Conceptually approved the 2015-16 Sewer Fund budget, with final action on June
23, 2015, with the adoption of the 2015-17 Financial Plan.
3. Adopt Resolution No. 10638 (2015 Series) entitled “A Resolution of the City
Council of the City of San Luis Obispo, California, establishing sewer service
rates.” (This Resolution would increase the wastewater service charge by 4.6
percent effective July 1, 2015 and three percent effective July 1, 2016 provided
there is no majority protest against such increases.)
4. Authorize the amendment of the Sewer Enterprise Fund 2014-15 budget to reflect
the revised values shown in the fund review documents.
LIAISON REPORTS
Council liaison reports were received from Council Member Christianson, Vice Mayor
Ashbaugh, and Mayor Marx.
COUNCIL COMMUNICATIONS
None.
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ADJOURNMENT
The City Council adjourned to an Adjourned Regular Meeting to be held on Tuesday, June 23,
2015 at 5:00 p.m. in the Council Chamber, 990 Palm Street, San Luis Obispo, California, for the
purpose of considering adoption of the 2015-17 Financial Plan. A subsequent meeting may be
held on June 30, 2015 at 5:00 p.m. regarding adoption of the 2015-17 Financial Plan, if
necessary.
__________________________
Anthony J. Mejia, MMC
City Clerk
APPROVED BY COUNCIL: XX/XX/2015
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City of San Luis Obispo, Council Agenda, City Hall, 990 Palm Street, San Luis Obispo
Tuesday, June 23, 2015
Adjourned Regular Meeting of the City Council
CALL TO ORDER
An Adjourned Regular Meeting of the San Luis Obispo City Council was called to order on
Tuesday, June 23, 2015 at 5:00 p.m. in the Council Chambers, located at 990 Palm Street, San
Luis Obispo, California, by Mayor Marx.
ROLL CALL
Council Members
Present: Council Members Dan Carpenter, Carlyn Christianson, Dan Rivoire, Vice Mayor
John Ashbaugh, and Mayor Jan Marx.
Council Members
Absent: None
City Staff
Present: Katie Lichtig, City Manager; Christine Dietrick, City Attorney; Michael Codron,
Assistant City Manager; and Anthony Mejia, City Clerk; were present at Roll
Call. Other staff members presented reports or responded to questions as indicated
in the minutes.
PLEDGE OF ALLEGIANCE
Council Member Christianson led the Pledge of Allegiance.
PUBLIC COMMENT
B.K. Richard, San Luis Obispo, Land Conservancy of San Luis Obispo County, thanked Council
for its contribution to the Octagon Barn Center.
Terry Mohan, San Luis Obispo, requested that Council rescind its settlement agreement with Mr.
Ryan Petetit, pointing out that no substantial progress has been made to complete the residential
development project at 1179 San Carlos Drive.
In response to public comment, City Attorney Dietrick advised that Mr. Ryan Petetit has
flagrantly disregarded the terms of agreement regarding 1179 San Carlos Drive; reported that her
office will pursue enforcement of the agreement, including payment of fines, through the court.
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CONSENT AGENDA
Peggy Koteen, San Luis Obispo, spoke on Item C5; thanked the City for choosing not to invest in
tobacco industries and industries which drill for fossil fuels; requested that Council evaluate a
greater array of socially responsible investments, noting that the City should not invest in
companies that cause ill health and climate change.
Heidi Harmon, San Luis Obispo, requested that Council divest in fossil fuel companies
completely; opined that fossil fuels need to remain in the ground in order to effectuate change and
prevent further worsening of climate change.
MOTION BY VICE MAYOR ASHBAUGH, SECOND BY COUNCIL MEMBER
CHRISTIANSON, CARRIED 5-0, to approve Consent Calendar Items C1 thru C7, with the
removal of Item C5 for separate consideration.
C1. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES
MOTION BY VICE MAYOR ASHBAUGH, SECOND BY COUNCIL MEMBER
CHRISTIANSON, CARRIED 5-0, to waive reading of all resolutions and ordinances as
appropriate.
C2. APPROPRIATIONS LIMIT FOR FISCAL YEAR 2015-16 – RESOLUTION
MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY VICE MAYOR
ASHBAUGH, CARRIED 5-0, to adopt Resolution No. 10639 (2015 Series) entitled “A
Resolution of the City Council of the City of San Luis Obispo, California, adopting the
appropriations limit for 2015-16.”
C3. FISCAL YEAR 2013-14 CENTRAL SERVICE COST ALLOCATION PLANS AND
COST OF SERVICE FEE STUDY
MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY VICE MAYOR
ASHBAUGH, CARRIED 5-0, to:
1. Approve the Fiscal Year 2013-14 Central Service Cost Allocation Plans dated March 2015.
2. Approve the Cost of Service Study completed in December 2014 and updated in April 2015.
C4. UPDATE TO THE CITY’S MASTER FEE SCHEDULE TO REFLECT
INCREASES BASED ON THE ANNUAL CHANGE IN THE CONSUMER PRICE
INDEX – RESOLUTION
MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY VICE MAYOR
ASHBAUGH, CARRIED 5-0, to adopt Resolution No. 10640 (2015 Series) entitled “A
Resolution of the City Council of the City of San Luis Obispo, California, updating the
City’s Master Fee Schedule to reflect increases based on the annual change in the
Consumer Price Index,” with the following revision:
(Council action continued on next page)
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1. Section 1 to read as “The Master Fee Schedule shown as an attachment to this
resolution is hereby adopted as amended for the change in the Consumer Price
Index, except that the individual fees calculated for planning review, engineering,
building inspection and development impact fees by the land management and
permitting system may differ from those shown in the attached Master Fee Schedule
by no more than one dollar ($1.00) due to rounding differences generated by that
system.
C5. APPROVAL OF REVISED INVESTMENT MANAGEMENT PLAN AND
INVESTMENT POLICY
Vice Mayor Ashbaugh recused himself from this item as there may be a potential conflict
of interest, inasmuch that his daughter is employed by Chevron and the City currently
holds an investment bond with Chevron; left the Chamber at 5:30 p.m.
Finance and Information Technology Director Padilla reviewed the contents of the
Council Agenda Report and responded to Council inquires.
During the course of discussion, Council directed that the Investment Oversight
Committee expand its outreach efforts with stakeholders when it considers possible
amendments to the Investment Policy, particularly as it relates to Socially Responsible
Investments.
Following discussion, MOTION BY MAYOR MARX, SECOND BY COUNCIL
MEMBER CHRISTIANSON, CARRIED 4-0 (VICE MAYOR ASHBAUGH
RECUSED), to direct the City Treasurer to divest in fossil fuel investments as soon as
feasibly possible.
Vice Mayor Ashbaugh returned to the Chamber at 5:31 p.m.
MOTION BY MAYOR MARX, SECOND BY COUNCIL MEMBER CARPENTER,
CARRIED 5-0, to:
1. Approve the revised Investment Management Plan, with the following revisions:
a. Section IV, Investment Vehicles, Paragraph 7 to be deleted “While the City is
allowed to invest in financial futures or option contracts, these are excluded in
accordance with the City's overall objective of achieving reasonable yields on
public funds while minimizing risk and capital losses. Although the potential exists
for greater interest yields with these vehicles, their potential level of risk exceeds
their benefits except in very limited circumstances. Accordingly, Council approval
is required on a case-by-case for any investments in financial futures or option
contracts.
(Council action continued on next page)
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b. Section IV, Investment Vehicles, Paragraph 8 (renumbered to 7) to read as “The
City is allowed to invest in mortgage pass-through and asset-backed securities,
provided that such securities have a maximum stated final maturity of five years
and are rated AA by Standard & Poor’s or Aa by Moody’s; and that purchase of
such securities does not exceed 20% of the portfolio. However, given the “melt-
down” in these types of securities in 2007 – even when rated “AAA/Aaa” by
NRSRO’s – the City will not invest in these securities. until such time as the
Director/City Treasurer is confident that adequate regulatory reform has taken
place that would make these securities consistent with the City’s primary
investment objective.”
2. Approve the revised Investment Policy and authorize inclusion in the approved
Financial Plan for 2015-17.
C6. 2014 ASSISTANCE TO FIREFIGHTERS GRANT APPLICATION
MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY VICE MAYOR
ASHBAUGH, CARRIED 5-0, to:
1. Authorize staff’s submittal of a grant application in the amount of $110,464 to the
Federal Assistance to Firefighters Grant Program to acquire Personal Protective
Equipment, coats and pants, for structural firefighting.
2. Authorize the City Manager to execute the grant documents and approve the budget
changes necessary to appropriate the grant amount upon notification that the grant has
been awarded.
3. Delegate purchase authority to advertise for Request for Proposals and award contract.
C7. DELEGATION OF INVESTMENT AUTHORITY TO THE CITY TREASURER
THROUGH THE 2015-16 FISCAL YEAR – RESOLUTION
MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY VICE MAYOR
ASHBAUGH, CARRIED 5-0, to adopt Resolution No. 10641 (2015 Series) entitled “A
Resolution of the City Council of the City of San Luis Obispo, California, extending the
delegation of investment authority to the City Treasurer through the 2015-16 Fiscal Year.”
PUBLIC HEARING
PH1. ADOPTION OF 2015-17 FINANCIAL PLAN - RESOLUTION
City Manager Lichtig, Assistant City Manager Codron, and Finance and Information
Technology Director Padilla narrated a PowerPoint presentation entitled “2015-17
Financial Plan and Budget Adoption June 23, 2015” and responded to Council inquiries.
Mayor Marx opened the public hearing.
Steve Barasch, San Luis Obispo, pointed out that Government Accounting Standard
Board (GASB) regulations have recently been amended to address reporting of unfunded
liabilities; noted that the California Supreme Court has recently made decisions related to
municipal bankruptcy and cost of living adjustments. C2-14
San Luis Obispo City Council Minutes of June 23, 2015 Page 5
There being no others desiring to speak on this item, the public hearing was closed.
Council Member Rivoire recused himself from deliberations related to the bicycle safety
education services funding noting that he is an employee of the San Luis Obispo Bicycle
Coalition which has provided bicycle safety education services in the past; left the
Chambers at 5:57 p.m.
City Attorney Dietrick noted for the record that Council is only making a determination
whether to allocate funding for bicycle safety education services, pointing out that
awarding of a contract will be made at a staff level.
MOTION BY VICE MAYOR ASHBAUGH, SECOND BY COUNCIL MEMBER
CHRISTIANSON, CARRIED 4-0 (COUNCIL MEMBER RIVOIRE RECUSED), to
adopt Resolution No. 10642 (2015 Series) entitled “A Resolution of the City Council of
the City of San Luis Obispo, California, allocating funds in each Fiscal Year of the 2015-
17 Preliminary Financial Plan for Transportation Planning and Engineering Contract
Services and, of those funds, an amount not to exceed $10,300 shall be allocated annually
for bicycle safety education services.”
Council Member Rivoire returned to the Chamber at 5:59 p.m.
Following discussion, MOTION BY VICE MAYOR ASHBAUGH, SECOND BY
COUNCIL MEMBER CHRISTIANSON, CARRIED 5-0, to adopt Resolution No. 10643
(2015 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo,
California, approving the 2015-17 Financial Plan and 2015-16 Budget,” with the
following revision:
1. Exhibit A, Changes to the Preliminary Budget, to add the following verbiage
“Program Change – Shift responsibility for oversight of the Human Relations
Commission program from Human Resources to Community Development (this does
not create a change in budgeted amounts).”
ADJOURNMENT
Special and Regular City Council Meetings are scheduled for Tuesday, July 7, 2015 at 4:00 p.m.
and 6:00 p.m., respectively, in the Council Chamber, 990 Palm Street, San Luis Obispo, California.
__________________________
Anthony J. Mejia, MMC
City Clerk
APPROVED BY COUNCIL: XX/XX/2015
C2-15