Public Employment pursuant to Government Code Section 54957: Title: City Manager

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1 ACTION MINUTES REGULAR MEETING OF THE CITY COUNCIL TUESDAY, OCTOBER 28, 2014 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. CALL TO ORDER Mayor Ferrara called the Regular City Council Meeting to order at 6:03 p.m. 2. ROLL CALL City Council: City Staff Present: Council Member Kristen Barneich, Council Member Joe Costello, Mayor Pro Tern Jim Guthrie, and Mayor Tony Ferrara were present. Council Member Tim Brown was absent. City Manager Steven Adams, City Attorney Tim Carmel, Director of Legislative and Information Services/City Clerk Kelly Wetmore, Public Works Director Geoff English, Director of Administrative Services Debbie Malicoat, Associate Planner Kelly Heffernen, and Director of Community Development Teresa McClish. 3. FLAG SALUTE Representatives from Girl Scout Troop led the Flag Salute. 4. INVOCATION Pastor David Burgeson, First United Methodist Church, delivered the invocation. 5. AGENDA REVIEW 5.a. Closed Session Announcements. Mayor Ferrara reported that on Tuesday, October 14, 2014, after meeting in Closed Session regarding the following items, the Council reconvened into open session and announced that no reportable action was taken: Conference with Legal Counsel - Existing Litigation pursuant to Government Code Section (a): Name of Case: Santa Maria Valley Water Conservation District v. City of Santa Maria, et al. and related actions, Santa Clara Superior Court, Case No. CV Public Employment pursuant to Government Code Section 54957: Title: City Manager 5.b. Ordinances Read in Title Only. Council Member Barneich moved, Council Member Costello seconded, and the motion passed unanimously that all ordinances presented at the meeting shall be read by title only and all further readings be waived. 6. SPECIAL PRESENTATIONS 6.a. Presentation by Economic Vitality Corporation (EVC). Item 8.e. - Page 1

2 Tuesday, October 28, 2014 Page2 Michael Manchak, President and CEO, provided an overview of the Economic Vitality Corporation including the resources its offers to businesses to diversify the local economy, tourism, demographics, economic challenges, accomplishments to date, focus on the airport and potential opportunities, goals to increase broadband connectivity service, and an overview of EVC business partners and its network. 7. CITIZENS' INPUT. COMMENTS, AND SUGGESTIONS Speaking from the public were Anna Unkovich, Arroyo Grande, extending gratitude to the Council, staff, Police, and Fire Department and stated her desire to move forward with City business; Dane Sensor, expressed concern about businesses feeling intimidated regarding their choice of political signs and expressed concern about the presence of the Sheriff's Department; John Spencer, commented on the EVC presentation and his opportunity to open a store in the City in an area of the City that had been challenging, and hoped that in moving forward, the City will work to re-establish trust and confidence in growing small businesses, and encouraged the Council to reach out to the community and business leaders in a town forum in order to create trust and confidence for the future; Colleen Martin commented on the July 3rd incident and questioned why the Council is willing to forfeit its good name and the integrity of the City for one person's indiscretion, commented on why people are questioning the Council's decision making process on a number of issues, and requested the Council place the City Manager on administrative leave; Vanessa Andrews, Arroyo Grande, stated she is not a satisfied citizen of the City after learning about the July 3rd incident and subsequent questionable actions, stated it was her right to speak and attend meetings, and stated the public is trying to hold the Council accountable for its actions; Beatrice Spencer, Arroyo Grande, commented that nothing has changed in the 16 weeks since the July 3rd incident and questioned why the Council has not placed the City Manager on administrative leave, expressed concerns about the Council's inability to solve the matter, supported the actions of the Police Department, and urged the Council to accept the resignation of the City Manager and to hire an interim manager; Patty Welsh, Arroyo Grande, commented on the July 3rd incident and the negative impacts it has had on the City and its staff; Otis Page, Arroyo Grande, commented on the approaching election, why the investigation is taking so long, noted that the Council has a resignation letter from the City Manager which should be accepted, and called for a financial audit of the City; Colleen Drees, Arroyo Grande, thanked the Council for its service to the community and noted the changes that have taken place since 1999, expressed sorrow for things that have happened in these Chambers, and asked for civility and respect; Cassandra Appleton expressed concerned about transparency, referred to the 2010 SSLOCSD sewage spill, and expressed concerned about potential rate increases after the election; Manetta Bennett, Arroyo Grande, thanked the City Council and staff for all their work over the past years, commented on her long time residency and business ownership in Arroyo Grande, and commented on the right of those who live outside the City who may speak on behalf of family who do live in the City; Rudy Xavier, Arroyo Grande, commented on things that are right in Arroyo Grande, expressed respect for the Police Department, expressed concern about the constant referral to the July 3rd incident, commended the financial management of the City over the hard economic times which has resulted in a stable government, and supported City staff; Rich Hagler, Arroyo Grande, spoke in support of public safety officials and their vote of no confidence in the Mayor and City Manager and expressed concerns regarding the July 3rd incident; Janet Talbert, Arroyo Grande, stated she owes gratitude to the Council for keeping the City out of debt and for its steady leadership, and thanked City Manager Adams for his years of service; Tom Talbert, Arroyo Grande, spoke of his long time residency in the City, the changes into a thriving and vibrant City that is known for its special events, landscaping, volunteerism, and street repair, that this is a result of the Item 8.e. - Page 2

3 Tuesday, October 28, 2014 Page3 Council and staff's dedication,and leadership, and the need for citizens to support the Council and staff; Ross Kongable, Arroyo Grande, expressed gratitude to the Council and staff for its outstanding performance and expressed fear for the City's future; Bill Mccann, Arroyo Grande, spoke of his long time residency in the City, supported the Council and staff, and expressed concerns regarding campaign sign violations and vandalism and stated that placement is the responsibility of the candidate; Devin Ward, Arroyo Grande, stated that the crosswalk at E. Grand Avenue and South Alpine was removed and now there is no place to cross the street from one side to the other on Grand Avenue from Halcyon Road to Traffic Way; Doug Perrin, San Luis Obispo, stated he had worked for the City for 33 years, acknowledged the speakers for their willingness to speak, admired the Council and staff for serving the City, and hoped that when the election is over, the City will move on and heal; Brad Snook, Surfrider Foundation, spoke of issues relating to the Sanitation District, issues of City policy needing to be addressed, and acknowledged that Jim Hill is not new to the area and has supported an investigation of the Sanitation District; Heather Jensen, Arroyo Grande, endorsed comments that have been made concerning the City, and expressed concern regarding the drought and recent approval of an agreement for a water conservation program, and noted that there are two major housing development projects that are coming up on the agenda; LeAnn Akins, Arroyo Grande, expressed concern about the direction the City is going, stated she wants to be a part of the community in a bigger way, expressed concern about transparency on major issues facing the City, expressed concern about policies not being followed, and supported the AGPOA. 8. CONSENT AGENDA Mayor Ferrara invited public comment on the Consent Agenda. No public comments were received. Council Member Barneich requested clarification on Item 8.1. regarding the direction of the parade route. City Manager Adams explained the change in staging and direction of the parade route due to traffic issues. Action: Council Member Costello moved, and Council Member Barneich seconded the motion to approve Consent Agenda Items 8.a. through 8.m., with the recommended courses of action. The motion passed on the following roll-call vote: Costello, Barneich, Guthrie, Ferrara Brown 8.a. 8.b. 8.c. 8.d. Consideration of Cash Disbursement Ratification. Action: Ratified the listing of cash disbursements for the period October 1, 2014 through October 15, Consideration of Statement of Investment Deposits. Action: Received and filed the report listing the current investment deposits of the City, as of September 30, 2014, as required by Government Code Section 53646(b). Consideration of Software Agreement with OpenGov, Inc. Action: Authorized the City Manager to enter into a Software Agreement with OpenGov, Inc. and appropriate $4,9000 from the General Fund unreserved balance. Consideration of Approval of Minutes. Action: Approved the minutes of the Regular City Council meeting of September 9, 2014 and the Special City Council meeting of September 20, 2014, as submitted. Item 8.e. - Page 3

4 Tuesday, October 28, 2014 Page4 8.e. 8.f. 8.g. 8.h. 8.i. 8.j. 8.k. Consideration of Approval of a Master Fiber Agreement with CCO SoCAL, LLC. Action: 1) Approved a one year Master Fiber Agreement with CCO SoCAL in the amount of $41,000, as amended; 2) Approved use of $24,000 from budgeted contingency funds; and 3) and authorized the Mayor to execute the Agreement in a form approved by the City Attorney. Consideration of Resolution to Close Escrow on Sale of Parcel on Old Ranch Road. Action: Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AUTHORIZING THE SALE OF PARCEL ON OLD RANCH ROAD". Consideration of Participation as a Special Olympics World Games Host Town. Action: Approved participating as a Special Olympics World Game Host Town and direct staff to proceed with plans to organize the necessary activities. Consideration of Reciprocal Easement Agreement and Revocable License Related to Access of Police Station Driveways. Action: 1) Approved a Reciprocal Easement Agreement for Common Driveway at the Police Station at 200 North Halcyon Road with T.L. Berryhill and Alva Sue Berryhill, William J.W. Calder and Candace Calder, as Trustees of the William and Candace Calder Family Trust, and John Albert Mallory, Trustee of the John Albert Mallory and Patricia Gail Mallory Trust; and 2) Approved a Revocable License for Ingress and Egress Purposes with the same parties related to access of the driveway serving the Police Station at 200 North Halcyon Road. Consideration of an Award of Contract to Pickard & Butters Construction, Inc. for the Corporation Yard Administration Building Project, PW Action: 1) Awarded a contract for the subject project to Pickard & Butters Construction, Inc. in the amount of $396, 796; 2) Authorized the City Manager to approve change orders for 10% of the contract amount, $39,680, for unanticipated costs during the construction phase of the project; and; 3) Directed the City Clerk to file a Notice of Exemption. Consideration of Acceptance of the Reservoir No. 3 Exterior Recoating Project, PW Action: 1) Accepted the improvements as constructed by Crosno Construction, Inc. for the subject project; 2) Directed staff to file a Notice of Completion; and 3) Authorized release of retention thirty-five (35) days after the Notice of Completion has been recorded, if no liens have been filed. Consideration of Updated Adopt-A-Park Agreement for the Elm Street Park Off Leash Dog Park. Action: Approved an updated Adopt-A-Park Agreement between the Five Cities Dog Park Association and the City for operation, maintenance and improvements to the Elm Street Park Off-Leash Dog Park Consideration of Temporary Use Permit Case No Authorizing the Closure of City Streets for the Annual Arroyo Grande Village Christmas Parade, November 30, Action: Adopted a Resolution, as amended, entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING TEMPORARY USE PERMIT NO AND AUTHORIZING THE CLOSURE OF CITY STREETS FOR THE ANNUAL ARROYO GRANDE VILLAGE CHRISTMAS PARADE, NOVEMBER 30, 2014". Item 8.e. - Page 4

5 Tuesday, October 28, 2014 Page5 8.m. Consideration of a Resolution Authorizing the Community Development Director to Execute Agreements with the California Department of Transportation for the Use of Grant Funds from the Sustainable Transportation Planning Grant Program. Action: Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AUTHORIZING THE COMMUNITY DEVELOPMENT DIRECTOR TO SUBMIT THE GRANT APPLICATION AND TO EXECUTE AGREEMENTS WITH THE CALIFORNIA DEPARTMENT OF TRANSPORTATION FOR THE USE OF GRANT FUNDS FROM THE SUSTAINABLE TRANSPORTATION PLANNING GRANT PROGRAM". 9. PUBLIC HEARINGS. 10. CONTINUED BUSINESS. 11. NEW BUSINESS 11.a. Consideration of Consultant Services for City Manager Recruitment. Administrative Services Director Malicoat presented the staff report and recommended that the Council: 1) Approve use of $26,000 in contingency funds for consultant services to coordinate the City Manager recruitment and selection process; and 2) Designate Mayor Ferrara and Mayor Pro Tern Guthrie to interview and recommend a consultant after proposals are received. Mayor Ferrara invited public comment. Speaking from the public were Colleen Martin, who agreed that a consultant is necessary to recruit a new City Manager, acknowledged that the timeline is aggressive, and recommended the Council hire an Interim City Manager in order to spend a sufficient amount of time to recruit a City Manager; Vanessa Andrews, who stated that City Manager Adams should not be part of the selection or training process and agreed that an Interim City Manager is needed. No further public comments were received. Action: Council Member Costello moved to: 1) Approve use of $26,000 in contingency funds for consultant services to coordinate the City Manager recruitment and selection process; and 2) Designate Mayor Ferrara and Mayor Pro Tern Guthrie to interview and recommend a consultant after proposals are received. Council Member Barneich seconded, and the motion passed on the following roll call vote: Costello, Barneich, Guthrie, Ferrara Brown 11.b. Consideration of an Ordinance Adding Section to Chapter 9.16 of the Arroyo Grande Municipal Code Relating to Music or Noise after 10:00 P.M. in Commercial Districts. City Manager Adams provided a brief background on this item and Council's previous direction to place this matter on the Agenda. Item 8.e. - Page 5

6 Tuesday, October 28, 2014 Page6 Assistant City Attorney Hirsch presented the staff report and recommended the Council introduce an Ordinance adding Section to Chapter 9.16 of the Arroyo Grande Municipal Code adding new regulations relating to music or noise after 10:00 p.m. in Commercial Districts. Staff responded to questions from Council. Mayor Ferrara invited public comment. Speaking from the public expressing concerns regarding the proposed Ordinance were Pete Ruiz, Jr.; Arly Maretti, Ralph & Duane's; Casey O'Connor, Bill's Place; Marcia Maretti, Ralph & Duane's; and Terry Fowler, Miller Way. No further public comments were received. Council discussion ensued regarding the proposed Ordinance as it relates to enforcement on a complaint basis; revisiting the Ordinance in three months as it relates to the effectiveness of enforcement; and a suggestion to delay the Ordinance in order to allow the business owners time to address issues related to late night music. Action: Council Member Costello moved to introduce an Ordinance entitled: "AN ORDINANCE OF THE CITY COUN.CIL OF THE CITY OF ARROYO GRANDE ADDING SECTION TO CHAPTER 9.16 OF THE ARROYO GRANDE MUNICIPAL CODE RELATING TO MUSIC OR NOISE AFTER 10:00 P.M. IN COMMERCIAL DISTRICTS", with the understanding that the Council will revisit this in three months. Council Member Barneich seconded, and the motion passed on the following roll call vote: Costello, Barneich, Ferrara Guthrie Brown 12. CITY COUNCIL REPORTS: The Mayor and Council Members provided brief reports from the following committee, commission, board, or other subcommittee meetings that they have attended as the City's appointed representative. (a) (b) (c) Mayor Ferrara: (1) San Luis Obispo Council of Governments/San Luis Obispo Regional Transit Authority (SLOCOG/SLORTA) (2) South San Luis Obispo County Sanitation District (SSLOCSD) (3) Other Mayor Pro Tern Guthrie: (1) South County Area Transit (SCAT) (2) Economic Vitality Corporation (EVC) (3) California Joint Powers Insurance Authority (CJPIA) (4) South San Luis Obispo County Sanitation District (Alternate) Council Member Costello: (1) Air Pollution Control District (APCD) (2) Five Cities Fire Authority (FCFA) Item 8.e. - Page 6

7 Tuesday, October 28, 2014 Page 7 (d) (e) Council Member Brown: (1) Integrated Waste Management Authority Board (IWMA) (2) County Water Resources Advisory Committee (WRAC) Council Member Barneich: (1) Zone 3 Water Advisory Board (2) Homeless Services Coordinating Council (HSOC) (3) Tourism Committee 13. COUNCIL COMMUNICATIONS Mayor Ferrara noted he would reserve his comments until the end of the meeting. 14. STAFF COMMUNICATIONS. 15. COMMUNITY COMMENTS AND SUGGESTIONS Colleen Martin, Arroyo Grande, encouraged citizens to be involved with every aspect of the City, to read the local news, expressed concern about the City's failure to act on the inappropriate behavior of employees, and recommended the Council agendize an action item to create a plan for how to deal with the damage and fallout as a result of the July 3rd incident and provided suggestions on how the City can begin to move forward. In response to earlier public comments, Mayor Ferrara displayed a photo of the tree that fell across the sidewalk in front of his home while he was out of town and which had been blocking the sidewalk. Mayor Ferrara stated he was not able to move the tree on his own and was concerned about a safety hazard in the public right of way. He clarified that he paid for the removal of the tree by the City's Public Works Department. He expressed concerns about comments being made in the media regarding this and other matters concerning the City Council. He stated the Council continues to do the business of the City, that he is very proud to be a resident of the City, and that efforts to provide stability in the City will continue. Mayor Ferrara announced that the November 11, 2014 City Council meeting was canceled due to the holiday, and the next regular meeting would be held on November 25, CLOSED SESSION:. 18. ADJOURNMENT Mayor Ferrara adjourned the meeting at 8:35 p.m. Item 8.e. - Page 7

8 Tuesday, October 28, 2014 PageB Jim Hill, Mayor ATTEST: Kelly Wetm"ore, City Clerk (Approved at CC Mtg Item 8.e. - Page 8

9 ACTION MINUTES SPECIAL MEETING OF THE CITY COUNCIL WEDNESDAY, NOVEMBER 19, 2014 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. CALL TO ORDER Mayor Pro Tern Guthrie called the Special City Council Meeting to order at 6:00 p.m. 2. ROLL CALL: Council Members Tim Brown, Kristen Barneich, Joe Costello, and Mayor Pro Tern Jim Guthrie were present. Mayor Tony Ferrara was absent. Staff present were City Attorney Tim Carmel and City Clerk Kelly Wetmore. 3. PUBLIC COMMENT: Mayor Pro Tern Guthrie led the Flag Salute. 4. PUBLIC COMMENT: Mayor Pro Tern Guthrie invited public comment on any item on the Agenda. Speaking from the public were: Patty Welsh, commented on the investigation; Otis Page, thanked Council Member Joe Costello for his service to the City; Jim Hill, thanked Council Member Joe Costello for his many years of service on the Council; Alegi Davar, commented on the investigation report; Colleen Martin, commented on the investigation, the need for the Council to take immediate action to remove City Manager Adams from his position, and that -it was time to apologize to the community, employees, and AGPOA; Michael Andrews, commented on the Mayor's recent statements provided to the Santa Maria Times, commented on the July 3rd incident, and spoke in support of the Police Department; Glen Martin, commented on the July 3rd incident and lack of action taken by the Council, and expressed concerns about Brown Act violations regarding previous closed session meetings; Vanessa Andrews, commented that the original police reports and a follow up investigation by a third party with no conflict of interest would have been sufficient, expressed concerns about the investigation process, and stated that Mr. Adams should be terminated tonight; Jim Hill, referred to the closed session item, asked the Council to accept Mr. Adams' resignation effective immediately with no further action such as termination for cause or special compensatory action, requested appointment of a Director as Acting City Manager until an Interim Manager can be appointed by the incoming Council, and requested that no action be taken to engage any employee search organization until the incoming Council is seated, and thanked Mr. Adams for his good service to the City; April Mclaughlin, expressed concern about closed session meetings; Will Power, congratulated the newly elected Council members and expressed concerns about how the attitudes of some people have impacted the residents of Arroyo Grande; Beatrice Spencer, commented on the public investigation report and stated that the report did not reveal anything they did not already know, and expressed concern about the City's legal exposure had the Council received better legal counsel; and LeAnn Akins, commented on statements made in the investigation report. 5. CONSENT AGENDA: 5.a. Correction to September 9, 2014 City Council Action Minutes. Recommended Action: Approve an amendment to Page 7, Item 17 of the September 9, 2014 City Council Meeting Action Minutes. Item 8.e. - Page 9

10 Minutes of City Council Special Meeting November 19, 2014 Page2 Action: Council Member Costello moved to approve an amendment to Page 7, Item 17 of the September 9, 2014 City Council Meeting Action Minutes. Council Member Brown seconded, and the motion passed on the following roll-call vote: Costello, Brown, Barneich, Guthrie, Ferrara 6. CITY COUNCIL CLOSED SESSION: At 6:35 p.m., Mayor Pro Tern Guthrie adjourned the meeting to closed session to consider the following item: Public Employee Discipline/Dismissal/Release pursuant to Government Code Section 54957: Title: City Manager 7. RECONVENE TO OPEN SESSION: Mayor Pro Tern Guthrie reconvened the meeting to open session and announced that the City Council decided to accept Steve Adams' resignation and immediately place him on paid administrative leave until an Interim Manager is hired. He stated the motion was made by Mayor Pro Tern Guthrie, seconded by Council Member Barneich, and the vote was unanimous. 8. NEW BUSINESS: 8.a. Presentation By Sintra Group Regarding Investigation of July 3, 2014 Incident at City Hall Chuck Hoekstra and Peter Ruggiero, Sintra Group, provided a summary of the investigation report. Mayor Pro Tern Guthrie invited public comment. Speaking from the public regarding the investigation report were Vanessa Andrews, Colleen Martin, Alegi Davar, Julie Tacker, and Carole Henson. Chuck Hoekstra responded to questions from the Council and public. Council comments ensued regarding the investigation report and its conclusions, and the need for the City to move forward with City business. No formal action was taken on this item. 5. ADJOURNMENT: The meeting was adjourned at 8:51 p.m. Item 8.e. - Page 10

11 Minutes of City Council Special Meeting November 19, 2014 Page3 Jim Hill, Mayor ATTEST: Kelly Wetmore, City Clerk (Approved at CC Mtg ) Item 8.e. - Page 11

12 ACTION MINUTES REGULAR MEETING OF THE CITY COUNCIL TUESDAY, NOVEMBER 25, 2014 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. CALL TO ORDER Mayor Ferrara called the Regular City Council Meeting to order at 6:03 p.m. 2. ROLL CALL City Council: City Staff Present: Council Member Kristen Barneich, Council Member Tim Brown, Council Member Joe Costello, Mayor Pro Tern Jim Guthrie, and Mayor Ferrara were present. Acting City Manager Debbie Malicoat, City Attorney Tim Carmel, Director of Legislative and Information Services/City Clerk Kelly Wetmore, Public Works Director Geoff English, Associate Planner Kelly Heffernan, City Engineer Matt Horn and Director of Community Development Teresa McClish. 3. FLAG SALUTE Representatives from Girl Scout Troop led the Flag Salute. 4. INVOCATION The Reverend Merritt Greenwood, Saint Barnabas Episcopal Church, delivered the invocation. 5. AGENDA REVIEW 5.a.. 5.b. Ordinances Read in Title Only. Council Member Barneich moved, Council Member Brown seconded, and the motion passed unanimously that all ordinances presented at the meeting shall be read by title only and all further readings be waived. 6. SPECIAL PRESENTATIONS. 7. CITIZENS' INPUT, COMMENTS. AND SUGGESTIONS Speaking from the public were Rose Adams, Arroyo Grande, who spoke in support of her husband Steve Adams and his successes and pride during his tenure as Arroyo Grande's City Manager; Rudy Xavier, Arroyo Grande, thanked Steve Adams for his dedication and wished Tony Ferrara, Joe Costello, and Jim Hill the best of luck; Aaron Henkel, Arroyo Grande, stated he had asked two months ago for information regarding travel expenses to be placed on the City's website; LeAnn Akins, Arroyo Grande, referred to sole source contracts and expressed concern about the consent agenda item relating to The Wallace Group; Shirley Gibson, Halcyon, expressed appreciation to Mayor Ferrara, Council Member Costello, and City Manager Adams for their support and guidance in the preservation of iconic buildings and bridges in the City; and Michael Howard, Arroyo Grande, spoke in opposition to homestays in residential neighborhoods. Item 8.e. - Page 12

13 Tuesday, November 25, 2014 Page2 8. CONSENT AGENDA Mayor Ferrara invited public comment on the Consent Agenda. Speaking from the public were Jim Hill, regarding Items 8.a., 8.j., and 8.i.; Marcia Muretti, Ralph and Duane's, regarding Item 8.i.,; Judith Bean, regarding Item 8.i.; Patty Welsh, regarding Item Item 8.i., Ron Holt, regarding Item 8.j.; Julie Tacker, regarding Item 8.j.; and Mike Kroves, regarding Items 8.a. and 8.j. Council Member Brown requested Items 8.i. and 8.j. be pulled. Council Member Barneich requested Item 8.m. be pulled, and Mayor Pro Tern Guthrie requested Item 8.a. be pulled. Action: Council Member Barneich moved, and Council Member Brown seconded the motion to approve Consent Agenda Items 8.b. through 8.n., with the exceptions of Items 8.a., 8.i., 8.j., and 8.m., with the recommended courses of action. The motion passed on the following roll-call vote: Barneich, Brown, Costello, Guthrie, Ferrara 8.b. 8.c. 8.d. 8.e. 8.f. 8.g. 8.h. Consideration of Statement of Investment Deposits. Action: Received and filed the report listing the current investment deposits of the City, as of October 31, 2014, as required by Government Code Section 53646(b). Consideration of a Resolution Adopting Procedures for Implementation of the Patient Protection and Affordable Care Act ("ACA"). Action: Adopted a Resolution entitled: "A RESOLUTION OF THE CITY OF ARROYO GRANDE ADOPTING PROCEDURES FOR IMPLEMENTATION OF THE PATIENT PROTECTION AND AFFORDABLE CARE ACT ("ACA')''. Consideration of Amendment No. 2 to Consultant Services Agreement with Liebert Cassidy Whitmore. Action: Approved and authorized the Acting City Manager to execute Amendment No. 2 to the Consultant Services Agreement with Liebert Cassidy Whitmore for labor negotiations services. Consideration of a Resolution Adopting an Amendment to the Full Flex Cafeteria Plan Section 125. Action: Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ADOPTING AN AMENDMENT TO THE FULL FLEX CAFETERIA PLAN SECTION 125 TO UPDATE THE CAFETERIA PLAN RATES FOR 2015". Consideration of Approval of Minutes. Action: Approved the minutes of the Regular City Council meeting of September 23, 2014, as submitted. Consideration of Cancellation of December 23, 2014 City Council Meeting. Action: Cancelled the regularly scheduled meeting on December 23, Consideration of Resolution to Close Escrow on Sale of Parcels and on Old Ranch Road. Action: Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AUTHORIZING THE SALE OF PARCELS and ON OLD RANCH ROAD". Item 8.e. - Page 13

14 Tuesday, November 25, 2014 Page3 8.k. Consideration of Temporary Use Permit Case No ; Revised Street Closure Times for the Annual Arroyo Grande Village Christmas Parade, November 30, Action: Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE REVISING STREET CLOSURE TIMES UNDER TEMPORARY USE PERMIT NO FOR THE ANNUAL ARROYO GRANDE VILLAGE CHRISTMAS PARADE, NOVEMBER 30, Consideration of Resolution to Declare Surplus Property. Action: Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DECLARING ITEMS TO BE SURPLUS AND AUTHORIZING THE ITEMS FOR SALE, DONATION OR DISPOSAL". 8.n. Consideration of Appointment of Acting City Manager. Action: Appointed Deborah Malicoat as Acting City Manager until an Interim City Manager can be hired. ITEMS PULLED FROM THE CONSENT AGENDA 8.a. Consideration of Cash Disbursement Ratification (MALICOAT) Recommended Action: Ratify the listing of cash disbursements for the period October 16, 2014 through November 15, In response to a request by Mayor Pro Tern Guthrie, City Attorney Carmel explained how legal fees are broken down by category for litigation, human resources, and general administration and noted that the last two months included expenses for review of extensive public records requests and the investigation. Action: Mayor Pro Tern Guthrie moved to ratify the listing of cash disbursements for the period October 16, 2014 through November 15, Council Member Costello seconded, and the motion passed on the following roll call vote: Guthrie, Costello, Barneich, Brown, Ferrara 8.i. Consideration of Adoption of an Ordinance Adding Section to Chapter 9.16 of the Arroyo Grande Municipal Code Relating to Music or Noise after 10:00 P.M. in Commercial Districts. Recommended Action: Adopt an Ordinance adding Section to Chapter 9.16 of the Arroyo Grande Municipal Code adding new regulations relating to music or noise after 10:00 p.m. in Commercial Districts. In response to a request by Council Member Barneich, Chief Annibali responded to questions regarding the proposed Ordinance as it relates to noise levels and enforcement. Council comments ensued regarding postponing the proposed Ordinance to allow the businesses time to implement mitigation measures on their own in an effort to reduce noise, monitoring any complaints, and returning at a later date if necessary to reconsider the issue. Item 8.e. - Page 14

15 Tuesday, November 25, 2014 Page4 Action: Mayor Pro Tern Guthrie moved to deny the adoption of the Ordinance. Council Member Barneich seconded, and the motion passed on the following roll call vote: Guthrie, Barneich, Costello, Brown, Ferrara 8.j. Consideration of Amendments to Agreements with The Wallace Group and Water Systems Consulting. Recommended Action: 1) Approve a second amendment to the agreement with The Wallace Group for on-call engineering services; and 2) Approve a second amendment to the Agreement with Water Systems Consulting for on-call engineering services. In response to concerns expressed by Council Member Brown regarding the proposed six month time extensions, City Engineer Horn explained that the extensions would allow the consultants to continue work on major projects currently underway, including the Bridge Street Bridge project, Traffic Way Bridge project, and Don Roberts field lighting project, while staff develops a Request for Qualifications for obtaining consultants for non-specific projects. Following further questions and discussion, City Engineer Horn indicated that this process could be completed within three months. Action: Council Member Brown moved to: 1) Approve a second amendment to the agreement with The Wallace Group for on-call engineering services for no greater length than 3 months, to be revisited at that time; and 2) Approve a second amendment to the Agreement with Water Systems Consulting for on-call engineering services for no greater length than 3 months, to be revisited at that time. Mayor Pro Tern Guthrie seconded, and the motion passed on the following roll call vote: Brown, Guthrie, Costello, Barneich, Ferrara 8.m. Consideration of Plot Plan Review ; Heritage Square Park Restroom - Short Street; City of Arroyo Grande. Recommended Action: Adopt a Resolution a Resolution of the City Council of the City of Arroyo Grande approving Plot Plan Review Case No ; A New Public Restroom Facility; Heritage Square Park. In response to questions by Council Member Barneich regarding the color board for the project, Public Works Director English and Mark Vasquez, architect, reviewed the design recommendations by the Historical Resources Committee and noted that the color scheme would be similar to the colors on the Rotary Bandstand. Action: Council Member Barneich moved to adopt a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING PLOT PLAN REVIEW CASE NO ; A NEW PUBLIC RESTROOM FACILITY; HERITAGE SQUARE PARK". Council Member Costello seconded, and the motion passed on the following roll call vote: Item 8.e. - Page 15

16 Tuesday, November 25, 2014 Page5 Barneich, Costello, Brown, Guthrie, Ferrara 9. PUBLIC HEARINGS 9.a. Consideration of a Public Art Chumash Arborglyph Sculpture at 126 S. Mason Street; Applicant- Yak Titu Titu Yak Tilhini Northern Chumash Tribe; Staff Project No Community Development Director McClish requested a continuance of this pre-application item to provide notice to the Native Heritage Commission to provide an opportur:iity for additional input from the Native American community. Mayor Ferrara invited public comment. No public comments were received. Action: Mayor Ferrara moved to continue the item to a date uncertain in order to provide an opportunity for additional input from the Native American community. Council Member Barneich seconded, and the motion passed on the following roll call vote: Ferrara, Barneich, Costello, Brown, Guthrie 10. CONTINUED BUSINESS. 11. NEW BUSINESS 11.a. Consideration of Pre-Application No ; Specific Plan Designation, General Plan Amendment, Development Code Amendment and Lot Line Adjustment; Location East Cherry Avenue; Applicant: Japanese Welfare Association. Associate Planner Heffernen presented the staff report and recommended the City Council review the conceptual plans and provide comments to the applicant. Staff responded to questions from Council. Mayor Ferrara invited public comment. Speaking from the public were Margaret Ikeda, in support of the pre-application; Vard Ikeda, in support of the pre-application; Gary Kobara, in support of the conceptual plan, but expressed concern about the agricultural mitigation requirements; Shirley Gibson, in support of the conceptual multi-use plan, the Pacific Coast Railway path, but expressed concern about the agricultural land and the impact of future housing development; Dawn Kamiya, in support of the conceptual plan; Chris Hagerty, Scout Master of Boy Scout Troop 413, in support of the conceptual plan. No further public comments were received. Council comments ensued regarding the history of the zone change and General Plan Amendment on the property; that the agricultural elements in the conceptual plan provides sufficient agricultural mitigation; whether senior housing would be incorporated into the guest Item 8.e. - Page 16

17 Tuesday, November 25, 2014 Page 6 house; that parking has to be worked out based on configuration of the project; concerns regarding the proposed archive building; that the trees, including the palm tree, on the property need to be preserved; clarification that prior rezoning of the property to Agriculture was not based on farming activities, but based on the alluvial soil and natural resource to be preserved; some concern that if the property is rezoned to Mixed Use, that the property could be radically changed in the future; that 1: 1 agricultural mitigation is necessary; acknowledgment that the proposed cultural building is a shrine to agricultural heritage; and that the proposed buildings are appropriate and a good fit for the property. No formal action was taken on this item. Mayor Ferrara called for a break at 8:29 p.m. The Council reconvened at 8:35 p.m. 11.b. Consideration of Ordinance Amending Chapter 3.46 of the Arroyo Grande Municipal Code Relating to Exemptions and Vacation Rentals and Homestays. City Attorney Carmel presented the staff report and recommended that the Council introduce an Ordinance amending Chapter 3.46 of the Arroyo Grande Municipal Code to provide that the same exemptions that apply to the Transient Occupancy Tax apply to Arroyo Grande Tourism Business Improvement District assessments and amend the definition of "lodging" to include vacation rentals and homestays. Mayor Ferrara invited public comment. No public comments were received. Action: Council Member Brown moved to introduce an Ordinance entitled: "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AMENDING CHAPTER 3.46 OF THE ARROYO GRANDE MUNICIPAL CODE RELATING TO THE TOURISM BUSINESS IMPROVEMENT DISTRICT LAW". Council Member Costello seconded, and the motion passed on the following roll call vote: Brown, Costello, Barneich, Guthrie, Ferrara 12. CITY COUNCIL REPORTS: The Mayor and Council Members provided brief reports from the following committee, commission, board, or other subcommittee meetings that they have attended as the City's appointed representative. (a) Mayor Ferrara: (1) San Luis Obispo Council of Governments/San Luis Obispo Regional Transit Authority (SLOCOG/SLORTA} (2) South San Luis Obispo County Sanitation District (SSLOCSD) (3) Other Item 8.e. - Page 17

18 Tuesday, November 25, 2014 Page 7 (b) Mayor Pro Tern Guthrie: (1) South County Area Transit (SCAT) (2) Economic Vitality Corporation (EVC) (3) California Joint Powers Insurance Authority (CJPIA) (4) South San Luis Obispo County Sanitation District (Alternate) (c) (d) (e) Council Member Costello: (1) Air Pollution Control District (APCD) (2) Five Cities Fire Authority (FCFA) Council Member Brown: (1) Integrated Waste Management Authority Board (IWMA) (2) County Water Resources Advisory Committee (WRAC) Council Member Barneich: (1) Zone 3 Water Advisory Board (2) Homeless Services Coordinating Council (HSOC) (3) Tourism Committee 13. COUNCIL COMMUNICATIONS Council Member Barneich noted there had been some audio problems while watching meetings on Channel 20. City Clerk Wetmore provided an update that staff had been working on this issue and has had discussions with both Charter Communications and AGP Video to resolve the audio problems. 14. STAFF COMMUNICATIONS Acting City Manager Malicoat announced that Director of Public Works Geoff English would be the Acting City Manager in her absence during the holiday weekend. 15. COMMUNITY COMMENTS AND SUGGESTIONS Jim Hill, Arroyo Grande, expressed concerns regarding the amount of legal fees relating to the investigation, commended the Council's decision to not adopt the noise ordinance, acknowledged and thanked the Council for appointing Director Malicoat as Acting City Manager and thanked her for assuming those duties, commented on the E. Cherry project, and thanked Steve Adams, Mayor Ferrara, and Council Member Costello for their service to the City. 16. CLOSED SESSION. 18. ADJOURNMENT Mayor Ferrara thanked the Council and staff stating it was his pleasure working with them and submitted a resignation letter effective Friday, November 28th at 5:00 p.m. Mayor Ferrara adjourned the meeting at 8:50 p.m. Item 8.e. - Page 18

19 Tuesday, November 25, 2014 PageB Jim Hill, Mayor ATTEST: Kelly Wetmore, City Clerk (Approved at CC Mtg Item 8.e. - Page 19

20 ACTION MINUTES SPECIAL MEETING OF THE CITY COUNCIL MONDAY, DECEMBER 1, 2014 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. CALL TO ORDER Mayor Pro Tern Guthrie called the Special City Council Meeting to order at 6:00 p.m. 2. ROLL CALL Council Members Kristen Barneich, Tim Brown, Joe Costello, and Mayor Pro Tern Jim Guthrie were present. Staff present were Acting City Manager Debbie Malicoat, City Attorney Tim Carmel, Director of Legislative and Information Services/City Clerk Kelly Wetmore, Director of Public Works Geoff English, Director of Recreation Services John Rogers, Director of Community Development Teresa McClish, and Chief of Police Steve Annibali. 3. FLAG SALUTE Mayor Pro Tern Guthrie led the Flag Salute. 4. PUBLIC COMMENT: Mayor Pro Tern Guthrie invited public comment on any item on the Agenda. Speaking from the public was Cassandra Appleton, Grover Beach, who congratulated Mayor Hill and Council Member Harmon, referred to a recent Cal Coast News article, and asked that the appointment of Council Member Barneich as Mayor Pro Tern be put on hold until it could be further investigated. 5. PRESENTATION TO COUNCIL MEMBER JOE COSTELLO Mayor Pro Tern Guthrie presented to Council Member Costello a plaque from the City in appreciation for his service to the community as Council Member from 2002 to 2014 and as Planning Commissioner from 1999 to REMARKS BY DEPARTING COUNCIL MEMBER JOE COSTELLO Council Member Costello stated it has been his privilege and honor to have served on the Council for twelve years and on the Planning Commission for four years before that, and noted that Council Members also serve on a number of regional boards. He stated he also served on the Water Resources Advisory Committee, the Zone 3 Advisory Board, the Brisco Interchange Committee, the Air Pollution Control District Board, and the Five Cities Fire Authority Board. He thanked the citizens, voters, and kids of the City, the City staff and stated it has been a pleasure working with everyone. He thanked all the Council Members he had served with, and concluded by thanking his wife and family. 7. RECOGNITION OF FORMER MAYOR TONY FERRARA Mayor Pro Tern Guthrie recognized Mayor Ferrara in appreciation for his years of dedication, commitment and outstanding leadership as Mayor from , Council Member from , and Traffic Commissioner from He recognized his and Council Member Costello's many accomplishments during their tenure in office, specifically the adoption of the 2003 General Plan Update. He thanked them for their years of service. Item 8.e. - Page 20

21 Minutes of City Council Special Meeting December 1, 2014 Page2 8. CONSIDERATION OF RESOLUTION ACCEPTING THE CERTIFICATES OF THE COUNTY CLERK CERTIFYING THE RESULTS OF THE CANVASS OF ALL VOTES CAST AT THE NOVEMBER 4, 2014 CONSOLIDATED GENERAL ELECTION. City Clerk Wetmore presented the staff report and recommended the City Council adopt a Resolution accepting the Certificates of the County Clerk certifying the results of the canvass of all votes cast November 4, 2014 at the Consolidated General Municipal Election, City of Arroyo Grande. Action: Council Member Brown moved to adopt a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ACCEPTING THE CERTIFICATES OF THE COUNTY CLERK - RESULTS OF CANVASS OF ALL VOTES CAST AT THE NOVEMBER 4, 2014 CONSOLIDATED GENERAL ELECTION". Council Member Barneich seconded, and the motion passed on the following roll-call vote: Brown, Barneich, Costello, Guthrie 9. OATH OF OFFICE ADMINISTERED BY CITY CLERK KELLY WETMORE. City Clerk Wetmore administered the Oath of Office to Mayor Jim Hill, Council Member Tim Brown, and Council Member Barbara Harmon. 10. REMARKS BY COUNCIL MEMBER BROWN Council Member Brown acknowledged his kids and that it has been a pleasure raising his kids in Arroyo Grande; thanked the voters for their support; thanked everyone who has served the City, including the past Council, who have done their best; acknowledged former Mayor Ferrara, stating he was part of a change that is current to the one that is going on now; recalled issues regarding the preservation of prime farmland and acknowledged former Council Members he had served with; acknowledged campaign manager Chuck Fellows and noted he has always been there to support him; thanked those who had supported him financially; acknowledged Steve Adams, who put in a lot of work for the City and that he deserves credit for that; and requested that people give this Council the time it needs to work together and succeed. 11. REMARKS BY COUNCIL MEMBER HARMON Council Member Harmon thanked everyone for taking the time to be here tonight; reflected on statements she made at the beginning of her campaign in July; commented on how much she loves living in Arroyo Grande; asked people to take a moment and remember what they love about the town and use that and pride of community as a means to unite and move forward; to stay active in City government, be kind to one another, and for the people to continue to provide her with their perspective. 12. REMARKS BY MAYOR HILL Mayor Hill stated there were so many people to thank, that he was appreciative of all the support throughout the election campaign; thanked Beatrice Spencer, Patty Welsh, and Colleen Martin for making signs; thanked businesses for their support; thanked his friends at Diablo Canyon; thanked Mayor Ferrara's supporters and stated he would try to represent them and their interests as this is one community and it is time to move forward; thanked Chief Annibali and the Police Department for the outstanding job they do for the City every day; thanked staff for carrying on through an election campaign; and concluded by thanking and appreciating his wife Lin for her support. Item 8.e. - Page 21

22 Minutes of City Council Special Meeting December 1, 2014 Page3 13. SELECTION OF MAYOR PRO TEM Acting City Manager Malicoat presented the staff report and recommended the City Council appoint Council Member Barneich as the Mayor Pro Tern for the next one-year period, pursuant to Council policy. Mayor Hill invited public comment. No public comments were received. Action: Council Member Brown moved to appoint Council Member Barneich as the Mayor Pro Tern for the next one-year period. Mayor Pro Tern Guthrie seconded, and the motion passed on the following roll-call vote: Brown, Guthrie, Barneich, Harmon, Hill 14. ADJOURNMENT Mayor Hill adjourned the meeting at 6:24 p.m. Jim Hill, Mayor ATTEST: Kelly Wetmore, City Clerk (Approved at CC Mtg Item 8.e. - Page 22

23 ACTION MINUTES SPECIAL MEETING OF THE CITY COUNCIL WEDNESDAY, DECEMBER 3, 2014 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. CALL TO ORDER: Mayor Hill called the Special City Council Meeting to order at 7:16 p.m. 2. ROLL CALL: Council Members Barbara Harmon, Tim Brown, Jim Guthrie, Mayor Pro Tern Kristen Barneich, and Mayor Jim Hill were present. Staff members present were Acting City Manager Debbie Malicoat, City Attorney Tim Carmel, and Deputy City Clerk Kitty Norton. 3. FLAG SALUTE Mayor Hill led the flag salute. 4. PUBLIC COMMENT: Mayor Hill invited public comment on any item on the Agenda. Speaking from the public was Julie Tacker, who referred to the description of the closed session item and inquired about the process for appointing an Interim City Manager and whether that appointment could occur this evening. In response to public comment, Acting City Manager Malicoat stated it was unlikely an appointment would be made tonight, that the City is just beginning the process of identifying people who are available and willing to serve in this capacity, provided an overview of the process for identifying and selecting an Interim City Manager; acknowledged that time was of essence; and that the process would be as expeditious as possible; however, there is some due diligence that must be done. 5. CITY COUNCIL CLOSED SESSION: a. PUBLIC EMPLOYEE APPOINTMENT pursuant to Government Code Section 54957: Title: Interim City Manager City Attorney Carmel announced that the Council would adjourn to closed session pursuant to Government Code Section to consider the Interim City Manager appointment process. 4. RECONVENE TO OPEN SESSION: Mayor Hill reconvened the meeting to open session at 8:08 p.m. Acting City Manager Malicoat reported that the Council provided direction to staff on pursuing some individuals for the Interim City Manager position and stated those individuals would be brought back to Council for consideration and interviews on December 9th. Mayor Hill noted that any other interested individuals in the position should contact the City. Item 8.e. - Page 23

24 Minutes of City Council Special Meeting December 3, 2014 Page2 5. ADJOURNMENT: Mayor Hill adjourned the meeting at 8:09 p.m. Jim Hill, Mayor ATTEST: Kitty Norton, Deputy City Clerk (Approved at CC Mtg } Item 8.e. - Page 24

25 ACTION MINUTES SPECIAL MEETING OF THE CITY COUNCIL TUESDAY, DECEMBER 9, 2014 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. CALL TO ORDER: Mayor Hill called the Special City Council Meeting to order at 4:00 p.m. 2. ROLL CALL: Council Members Jim Guthrie, Tim Brown, Barbara Harmon, Mayor Pro Tern Kristen Barneich, and Mayor Hill were present. Staff members present were Acting City Manager Debbie Malicoat, City Attorney Tim Carmel, and Director of Legislative and Information Services/City Clerk Kelly Wetmore. 3. FLAG SALUTE Mayor Hill led the flag salute. 4. PUBLIC COMMENT:. 5. CITY COUNCIL CLOSED SESSION: a. PUBLIC EMPLOYEE APPOINTMENT pursuant to Government Code Section 54957: Title: Interim City Manager City Attorney Carmel stated that the Council would be going into closed session to consider interviews for the Interim City Manager position. 4. RECONVENE TO OPEN SESSION: Mayor Hill reconvened the meeting to open session at 6:02 p.m. City Attorney Carmel reported that the Council met in closed session to discuss the Interim City Manager appointment. He stated that the Council interviewed two potential candidates, held discussion, and that there was no reportable action taken. 5. ADJOURNMENT: The meeting was adjourned at 6:03 p.m. to the Regular Meeting of December 9, Jim Hill, Mayor ATTEST: Kelly Wetmore, City Clerk {Approved at CC Mtg ) Item 8.e. - Page 25

26 ACTION MINUTES REGULAR MEETING OF THE CITY COUNCIL TUESDAY, DECEMBER 9, 2014 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. CALL TO ORDER Mayor Hill called the Regular City Council Meeting to order at 6:04 p.m. 2. ROLL CALL City Council: City?taff Present: Council Member Jim Guthrie, Council Member Tim Brown, Council Member Barbara Harmon, Mayor Pro Tern Kristen Barneich and Mayor Jim Hill were present. Acting City Manager Debbie Malicoat, City Attorney Tim Carmel, Director of Legislative and Information Services/City Clerk Kelly Wetmore, Director of Community Development Teresa McClish, Public Works Director Geoff English and Associate Planner Matt Downing. 3. FLAG SALUTE Members of the El Camino 4-H Group led the Flag Salute. 4. INVOCATION Pastor Randy Ouimette, Saint John's Lutheran Church and Five Cities Fire Authority Chaplain, delivered the invocation. 5. AGENDA REVIEW 5.a. Closed Session Announcements. City Attorney Carmel reported that on Wednesday, December 3, 2014, after meeting in Closed Session regarding the following item, the Council reconvened into open session and announced that the Council discussed the Interim City Manager appointment and individuals that may be qualified for the job and no reportable action was taken: Public Employee Appointment pursuant to Government Code Section 54957: Title: Interim City Manager 5.b. Ordinances Read in Title Only. Council Member Brown moved, Mayor Pro Tern Barneich seconded, and the motion passed unanimously that all ordinances presented at the meeting shall be read by title only and all further readings be waived. 6. SPECIAL PRESENTATIONS 6.a. Presentation by Visit SLO. Acting City Manager Malicoat announced that the presentation by Visit San Luis Obispo has been rescheduled to the January 13, 2015 City Council meeting. Item 8.e. - Page 26

27 Tuesday, December 9, 2014 Page2 7. CITIZENS' INPUT, COMMENTS, AND SUGGESTIONS Mayor Hill invited public comment. Speaking from the public were Patty Beck, representing Homeless Services, regarding the "50 Now" project, a program to house the top 50 most vulnerable homeless people throughout SLO County; Julie Tacker, who expressed concern regarding issues related to the South San Luis Obispo County Sanitation District and the appointment of incoming officers; Shirley Gibson, who offered best wishes to Mayor Hill and Council Member Barbara Harmon, and announced a book signing at the IOOF Hall; Joe Furino, Arroyo Grande, who thanked Mayor Ferrara and Council Member Costello for their years of service, congratulated Mayor Hill and Council Member Harmon, hoped that the Council would not spend more staff time and money on the City Charter Measure, and expressed concern regarding the effectiveness of street sweeping operations; and Aleji Davar, Arroyo Grande, who welcomed the new elected officials and encouraged the Council to move forward with City business. 8. CONSENT AGENDA Mayor Hill invited public comment on the Consent Agenda. No comments were received. In response to Council Member Harmon's request to pull Item 8.b. for a separate vote because she was not on the Council in October, City Attorney Carmel noted that by voting on the minutes, the Council is attesting to the City Clerk's documentation of the action taken at the meeting. Action: Council Member Brown moved, and Mayor Pro Tern Barneich seconded the motion to approve Consent Agenda Item 8.a., with the recommended course of action. The motion passed on the following roll-call vote: Brown, Barneich, Harmon, Guthrie, Hill 8.a. Consideration of Cash Disbursement Ratification. Action: Ratified the listing of cash disbursements for the period November 16, 2014 through November 30, ITEM PULLED FROM THE CONSENT AGENDA 8.b. Consideration of Approval of Minutes Recommended Action: Approve the minutes of the Special City Council Meeting of October 8, 2014 and the Regular City Council Meeting of October 14, 2014, as submitted. Action: Council Member Guthrie moved to approve the minutes of the Special City Council Meeting of October 8, 2014 and the Regular City Council Meeting of October 14, 2014, as submitted. Mayor Pro Tern Barneich seconded, and the motion passed on the following roll call vote: ABSTAIN: Guthrie, Barneich, Harmon, Brown Hill Item 8.e. - Page 27

28 Tuesday, December 9, 2014 Page3 9. PUBLIC HEARINGS 9.a. Consideration of Adoption of Ordinance Amending Chapter 3.46 of the Arroyo Grande Municipal Code Relating to Exemptions and Vacation Rentals and Homestays. Acting City Manager Malicoat presented the staff report and recommended that the Council adopt an Ordinance amending Chapter 3.46 of the Arroyo Grande Municipal Code to provide that the same exemptions that apply to the Transient Occupancy Tax apply to Arroyo Grande Tourism Business Improvement District assessments and amend the definition of "lodging" to include vacation rentals and homestays. Staff responded to questions from Council. Mayor Hill opened the public hearing, and upon hearing no comments, he closed the public hearing. Council Member comments ensued in support of the proposed Ordinance, acknowledgment of the protest letters received; the benefits of the Tourism Business Improvement District, and that the revenue collected benefits all lodging businesses. Council Member Harmon expressed concern about the protest letters, acknowledged they were not present, and stated she would have liked to hear directly from the people who submitted protest letter if their position on the proposed Ordinance had changed. Action: Council Member Brown moved to adopt an Ordinance entitled: "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AMENDING CHAPTER 3.46 OF THE ARROYO GRANDE MUNICIPAL CODE RELATING TO THE TOURISM BUSINESS IMPROVEMENT DISTRICT LAW 11 Mayor Pro Tern Barneich seconded, and the motion passed on the following roll call vote: Brown, Barneich, Guthrie, Hill Harmon 9.b. Consideration of a Resolution Adopting a Mitigated Negative Declaration and Approving General Plan Amendment ; Specific Plan Amendment , Vesting Tentative Tract Map , and Conditional Use Permit ; Subdivision of Two (2) Commercial Parcels into Forty-one (41) Residential Lots, One (1) Common Area Lot, and Two (2) Commercial Lots; Location: Southwest Corner of East Grand Avenue and South Courtland Street; Applicants: MFI Limited and NKT Commercial; Representative: RRM Design Group. Assistant Planner Downing presented the staff report and recommended that the Council adopt a Resolution adopting a Mitigated Negative Declaration and approving General Plan Amendment , Specific Plan Amendment , Vesting Tentative Tract Map ; and Conditional Use Permit Staff responded to questions regarding the history of the project; clarification regarding the General Plan Amendment; allowable uses on the site; additional traffic on S. Courtland; commercial traffic; fire department approval; water use and impacts; development impact fees; Item 8.e. - Page 28

29 Tuesday, December 9, 2014 Page4 guest parking; pedestrian connection between the project and the Peoples' Self Help Housing project; and clarification regarding workforce versus attainable housing as defined in the Housing Element. Mayor Hill called for a break at 7:35 p.m. The Council reconvened at 7:45 p.m. Mayor Hill invited the applicants to address the Council. Debbie Rudd from RRM Design Group, representing the applicant, provided an overview of the project including an overview of the project timeline and public meetings held; site context; site plan; providing viable commercial along E. Grand Avenue; providing attainable housing; areas of concern expressed by the Architectural Review Committee, Traffic Commission, and Planning Commission that have been addressed in the project, including parking requirements and proposed alternatives; architectural renderings of the proposed project; E. Grand Avenue access to the commercial component; fencing design; Courtland Street Residential access; lighting throughout the development; adding an option for a play structure in the neighborhood green area; an overview of the project benefits; and requested additional direction from the Council regarding parking, Grand Avenue access, and the play structure. Nick Tompkins, applicant, provided a business and family background; projects in Arroyo Grande from 2007 to today, reviewed previous proposals submitted; stated the site is not viable for increased retail use or a large commercial center; stated this project could fill in existing commercial vacancies along E. Grand Avenue; requested approval of the proposed mixed use project, stating this project would have the lowest traffic impact for S. Courtland. Council questions ensued regarding delivery truck access; shortening the timeline required to build the commercial component; restaurant square footage; housing with deed restrictions requiring owner occupied units for first year to encourage home ownership; the proposed Homeowners Association and maintenance by a professional management company; hours for loading; additional parking spaces on S. Courtland; and street width as it relates to bike lanes, parking and a sidewalk. Mayor Hill opened the public hearing. Speaking from th'e public were Aaron Henkel, Arroyo Grande, who expressed concerns about delays in the development of the commercial component, width of bike lanes; and turning pockets; John Mack, Arroyo Grande, expressed concerns about lack of neighborhood involvement, reviewed prior concept plan for the site, favored commercial development on the site, provided suggestions for mixed uses in the Gateway District, opposed high density residential separated by a fence with commercial, lack of transition between the residential and commercial components, no pedestrian pathways, not enough parking, opposed architecture and style of residential component, lacks neighborhood services, and urged a continuance; Patty Welsh, Arroyo Grande, spoke in opposition to the proposed project stating it does not meet the General Plan, that it is a commercial corridor not residential, expressed concerned with fire and emergency access, traffic through Berry Gardens, parking, HOA fees, and fencing; LeAnn Akins, Arroyo Grande, expressed concerns about the residential component as it relates to attainability and affordability; Steve Hollister, spoke in support of the proposed project, stated it mitigates traffic impacts to Berry Gardens with a smaller commercial component; Linda Drummond, spoke in opposition to the project expressing concerns with current traffic flow through Berry Gardens, generating more traffic through the neighborhood, water impacts, and traffic circulation; Chris Richardson, spoke in Item 8.e. - Page 29

30 Tuesday, December 9, 2014 Page5 support of the proposed project; Michael Morrow, spoke in support of the proposed project; Shirley Gibson, spoke about Mr. Tompkins and the Rooster Creek project, stating she respects his integrity and quality of his work. Mayor Hill called for a break at 9:20 p.m. The Council reconvened at 9:30 p.m. and resumed the public hearing Cheryl Schweitzerhof, Arroyo Grande, opposed the play structure and expressed concern about parking constraints, lighting and architecture; Glenn Martin, supported development in concept, but expressed concerns about the residential component, favored more commercial, stated parking is an issue, and acknowledged that commercial generates more traffic but advocates more commercial on this site, and commented on delivery trucks; Beatrice Spencer, Arroyo Grande, expressed concern that of the 5 acre parcel, providing only 11,000 square feet of commercial is inadequate, the project should be 2/3 commercial and 1/3 residential as originally proposed, there is a lack of green space within the project, inquired where service trucks would park, and opposed the General Plan Amendment; April Mclaughlin, expressed concern about aesthetics and layout of the residential component, and said it should remain as commercial; Julie Tacker, acknowledged the quality developers and that they could do better, that the site should be used for commercial, there should be an Environmental Impact Report for economic impacts of the project, and that more public outreach is needed; Joshua Roberts, project Civil Engineer, responded to comments regarding truck delivery and turning movements, bike lanes, and that traffic stacking on S. Courtland would not exceed past the commercial driveway and "stay clear" zone; a Berry Gardens resident commented on traffic impacts, loss of revenue for the City, and the potential for developing the gateway to the City. Upon hearing no further comments, Mayor Hill closed the public hearing. Debbie Rudd, from RRM Design Group provided closing statements in support of the project. Nick Tompkins commented on the wish list for tenants and costs for new construction as it relates to costs for tenants. Council comments ensued as follows: Council Member Harmon supported the commercial component of the proposed project; did not support the residential component as proposed; there are too many exceptions for mitigation; noted there is a paradigm shift for this type of housing; and stated that this is one of the last vacant commercial parcels in the City. Council Member Brown acknowledged previous discussion with Mr. Tompkins about the project; acknowledged improved parking design; the commercial design is good; vertical mixed use is favorable and would like to see more; if commercial component is increased, traffic will increase in the neighborhood; more commercial at front of property; this is a mid block project, not a gateway project; need for transition and buffer between residential and commercial; does not support the proposed General Plan Amendment; there is a need for more connectivity and pathways within the project; and could not support the project as proposed. Council Member Guthrie stated there is a lot of history with this parcel; spoke of efforts to create pedestrian friendly projects; previous projects were more intensive traffic generators; supported Item 8.e. - Page 30