ACTION MINUTES REGULAR MEETING OF THE CITY COUNCIL TUESDAY, JUNE 24, 2014 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA

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1 ACTION MINUTES REGULAR MEETING OF THE CITY COUNCIL TUESDAY, JUNE 24, 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 Tem Jim Guthrie, and Mayor Ferrara were present. City Manager Steven Adams, City Attorney Timothy Carmel, Director of Legislative and Information Services/City Clerk Kelly Wetmore, Public Works Director Geoff English, Director of Administrative Services Debbie Malicoat, and Director of Community Development Teresa McClish. 3. FLAG SALUTE Riley Betita, representing Boy Scout Troop 413, led the Flag Salute. 4. INVOCATION Pastor Ron Dee, Harvest Bible Church, delivered the invocation. 5. AGENDA REVIEW 5.a. Closed Session Announcements. Mayor Ferrara reported that on Tuesday, May 27, 2014, after meeting in Closed Session regarding the following item, the Council reconvened into open session and announced that no reportable action was taken: - Conference With Legal Counsel Anticipated Litigation Initiation of litigation pursuant to Government Code (d)(4) involving 2 potential cases 5.b. Ordinances Read in Title Only. Council Member Brown 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. 7. CITIZENS INPUT, COMMENTS, AND SUGGESTIONS Larry Harlan, Hillcrest Drive, commented on the City s water conservation policies. 8. CONSENT AGENDA Mayor Ferrara invited public comment on the Consent Agenda. received. No public comments were

2 Minutes: City Council Page 2 In response to a question by Mayor Ferrara regarding Item 8.g. (Construction of the 2014 Citywide Street Surface Repairs and East Grand Avenue Asphalt Overlay; El Camino Real to US 101), Public Works Director English clarified that the City is responsible for the maintenance of the pavement from the bridge deck on East Grand Avenue to the City limits, that maintenance of this area would require closure of lanes, and that an encroachment permit would be required from CalTrans for this section of right-of-way. Action: Council Member Costello moved, and Council Member Brown seconded the motion to approve Consent Agenda Items 8.a. through 8.i., with the recommended courses of action. The motion passed on the following roll-call vote: Costello, Brown, Barneich, Guthrie, Ferrara 8.a. 8.b. 8.c. 8.d. 8.e. 8.f. Consideration of Cash Disbursement Ratification. Action: Ratified the listing of cash disbursements for the period June 1, 2014 through June 15, Consideration of Statement of Investment Deposits. Action: Received and filed the report listing the current investment deposits of the City, as of May 31, 2014, as required by Government Code Section 53646(b). Consideration of Approval of Minutes. Action: Approved the minutes of the Regular City Council/Successor Agency to the Dissolved Arroyo Grande Redevelopment Agency meeting of June 10, 2014, as submitted. Consideration of Appointment of Voting Delegate for the League of California Cities Annual Conference. Action: Appointed Mayor Pro Tem Jim Guthrie as the voting delegate for the League of California Cities Annual Conference and City Manager Steve Adams as the alternate. Consideration of Listing Agreements for Sale of Old Ranch Road Properties. Action: 1) Approved exclusive listing agreements with Lenny Jones of Jones Goodell & Associates to sell two City-owned lots on Old Ranch Road; and 2) Approved listing prices of $285,000 and $279,000 for the two lots. Consideration of a Cooperation Agreement Between the County of San Luis Obispo and the City of Arroyo Grande for Joint Participation in the Community Development Block Grant Program, the Home Investment Partnerships Program, the Emergency Shelter Grant Program, the American Dream Down Payment Initiative Program, and the Housing Opportunities for Persons with AIDS (HOPWA) Program for Fiscal Years 2015 through Action: Adopted Resolution No entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING A COOPERATION AGREEMENT BETWEEN THE COUNTY OF SAN LUIS OBISPO AND THE CITY OF ARROYO GRANDE FOR JOINT PARTICIPATION IN THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM, THE HOME INVESTMENT PARTNERSHIPS PROGRAM, THE EMERGENCY SHELTER GRANT PROGRAM, THE AMERICAN DREAM DOWN PAYMENT INITIATIVE PROGRAM, AND THE HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS (HOPWA) PROGRAM FOR FISCAL YEARS 2015 THROUGH 2017.

3 Minutes: City Council Page 3 8.g. 8.h. 8.i. Consideration of an Award of Contract to Apodaca Paving, Inc. for Construction of the 2014 Citywide Street Surface Repairs and East Grand Avenue Asphalt Overlay; El Camino Real to US 101, PW Action: 1) Awarded a contract for construction to Apodaca Paving, Inc. in the amount of $324,375; 2) Authorized the City Manager to approve change orders for 10% of the contract amount, $32,438, for unanticipated costs during the construction phase of the project; and 3) Directed the City Clerk to file a Notice of Exemption. Consideration of an Award of Contract to J&P Construction for Construction of the Hoosegow Park ADA Improvements, PW Action: 1) Awarded a contract for construction to J&P Construction in the amount of $54,667; 2) Authorized the City Manager to approve change orders for 10% of the contract amount, $5,467, for unanticipated costs during the construction phase of the project; 3) Appropriated $20,000 from the Park Development Fund for the project; and 3) Direct the City Clerk to file a Notice of Exemption. Consideration of Amendments to the Policy Concerning the Naming of Public Parks and the Renaming of Hoosegow Park to Howard Mankins Hoosegow Park. Action: 1) Adopted Resolution No entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AMENDING THE POLICY CONCERNING THE NAMING OF PUBLIC PARKS ; and 2) Approved the renaming of Hoosegow Park to Howard Mankins Hoosegow Park. 9. PUBLIC HEARINGS 9.a. Consideration of Placing a Proposed City Charter on the Ballot at the November 4, 2014 Election for Consideration by Qualified Voters. City Manager Adams presented the staff report and recommended that the Council: 1) Adopt a Resolution ordering the submission to the qualified voters of the City a measure relating to the adoption of a City Charter at the General Municipal Election to be held on Tuesday, November 4, 2014, as called by Resolution No. 4596; 2) Adopt a Resolution setting priorities for filing a written argument regarding a City measure and directing the City Attorney to prepare an impartial analysis; 3) Adopt a Resolution providing for the filing of rebuttal arguments for City measures submitted at municipal elections; 4) Approve the argument to be submitted in favor of the measure. He stated staff has withdrawn recommendation No. 5 to appropriate $5,000 from the General Fund unappropriated fund balance for public education costs as no additional money is needed at this time. Staff responded to questions from Council. Mayor Ferrara requested modifying the ballot question so that it would read Shall the charter be adopted making the City of Arroyo Grande a charter city so that the laws of the City of Arroyo Grande shall prevail over state law with respect to the management of municipal affairs?. Mayor Ferrara opened the public hearing. The following members of the public spoke: Terry Madonna, Santa Margarita, in opposition to the Charter proposal without prevailing wage requirements; Kyle Kramel, who stated that the City of Grover Beach is recommending not pursuing a Charter measure and that the City of Arroyo Grande should also discontinue the process;

4 Minutes: City Council Page 4 Cherie Cabral, in opposition to the Charter proposal without prevailing wage requirements; David Baldwin, Arroyo Grande, in opposition to the Charter proposal without prevailing wage requirements; Joe Furino, N. Elm Street, commented favorably on the proposed Charter as it relates to the removal of unfunded mandates. Upon hearing no further comments, Mayor Ferrara closed the public hearing. Action: Council Member Costello moved to adopt a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ORDERING THE SUBMISSION TO THE QUALIFIED VOTERS OF THE CITY A MEASURE RELATING TO THE ADOPTION OF A CITY CHARTER AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 4, 2014, AS CALLED BY RESOLUTION NO. 4596, as modified to include a change in the ballot question to read as follows: Shall the charter be adopted making the City of Arroyo Grande a charter city so that the laws of the City of Arroyo Grande shallprevail over state law with respect to the management of municipal affairs?. Council Member Brown seconded, and the motion passed on the following roll-call vote: Costello, Brown, Barneich, Guthrie, Ferrara Action: Council Member Costello moved to adopt a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE SETTING PRIORITIES FOR FILING WRITTEN ARGUMENTS REGARDING A CITY MEASURE AND DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS, as modified to include the change to the ballot question. Council Member Barneich seconded, and the motion passed on the following roll-call vote: Costello, Barneich, Brown, Guthrie, Ferrara Action: Council Member Costello moved to adopt a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE, CALIFORNIA, PROVIDING FOR THE FILING OF REBUTTAL ARGUMENTS FOR CITY MEASURES SUBMITTED AT MUNICIPAL ELECTIONS. Council Member Brown seconded, and the motion passed on the following roll-call vote: Costello, Brown, Barneich, Guthrie, Ferrara Action: Council Member Costello moved to approve the argument to be submitted in favor of the measure. Council Member Brown seconded, and the motion passed on the following roll-call vote: Costello, Brown, Barneich, Guthrie, Ferrara

5 Minutes: City Council Page 5 9.b. Consideration of Water Rates for Fiscal Year through Fiscal Year Administrative Services Director Malicoat presented the staff report and recommended that the Council: 1) Conduct a public hearing to consider protests regarding the proposed water rate adjustments and in the water rate structure as outlined in the 2014 Water and Wastewater Rate Study; and 2) If there is no majority protest, adopt a Resolution establishing new water rates and rate structure effective July 26, 2014 for Fiscal Year through Fiscal Year Staff then responded to questions from Council. Mayor Ferrara opened the public hearing. Speaking from the public were: Mike Miller, Corbett Canyon Road, requesting the Council consider adjusting the tiered rate so it is tied to the size of the property; Carol Berger, in opposition to the proposed rate increase; Joe Furino, N. Elm Street, requesting clarification on information in the presentation. Upon hearing no further comments, Mayor Ferrara closed the public hearing. Action: Council Member Costello moved to approve A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ESTABLISHING WATER RATES AND CHARGES with direction to staff to review the rates in 3 years. Council Member Barneich seconded, and the motion passed on the following roll-call vote: Costello, Barneich, Brown, Guthrie, Ferrara Mayor Ferrara called for a break at 8:10 p.m. The Council reconvened at 8:20 p.m. 9.c. Consideration of Resolution Adjusting Certain Recreation Fees set forth in the Master Fee Schedule. Administrative Services Director Malicoat presented the staff report and recommended that the Council adopt a Resolution adjusting certain Recreation Department operating fees set forth in the Master Fee Schedule. Mayor Ferrara opened the public hearing. Upon hearing no comments, Mayor Ferrara closed the public hearing. Action: Council Member Barneich moved to approve A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ADJUSTING CERTAIN RECREATION DEPARTMENT OPERATING FEES SET FORTH IN THE MASTER FEE SCHEDULE. Mayor Pro Tem Guthrie seconded, and the motion passed on the following roll-call vote: Barneich, Guthrie, Brown, Costello, Ferrara 10. CONTINUED BUSINESS.

6 Minutes: City Council Page NEW BUSINESS 11.a. Consideration of Ordinance Regarding State Video Franchises. City Manager Adams presented the staff report and recommended that the Council introduce an Ordinance regarding State Video Franchises to require payment of a franchise fee, provision of Public, Education and Government (PEG) access channels, payment of a PEG access facilities fee, and penalties for customer service violations. Mayor Ferrara invited public comment. No public comment was received. Action: Council Member Costello moved to introduce an Ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ADDING CHAPTER 5.25 TO TITLE 5 OF THE ARROYO GRANDE MUNICIPAL CODE RELATING TO STATE-ISSUED CABLE TELEVISION FRANCHISES. Council Member Barneich seconded, and the motion passed on the following roll-call vote: Costello, Barneich, Brown, 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) (b) (c) (d) 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 Tem 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) Council Member Brown: (1) Integrated Waste Management Authority Board (IWMA) (2) County Water Resources Advisory Committee (WRAC)

7 Minutes: City Council Page CITY COUNCIL REPORTS (cont d): (e) Council Member Barneich: (1) Zone 3 Water Advisory Board (2) Homeless Services Coordinating Council (HSOC) (3) Tourism Committee 13. COUNCIL COMMUNICATIONS Mayor Ferrara reported that information will be distributed soon to announce the ribbon cutting ceremony for the Public Art Mural in the Village. 14. STAFF COMMUNICATIONS City Manager Adams reported that there was good staff turnout for the Visit California promotion video. 15. COMMUNITY COMMENTS AND SUGGESTIONS John Keen, N. Elm Street, commented that the Public Art Mural is beautiful. He also referred to the Charter measure and questioned how municipal affairs is defined and emphasized the need for public education about municipal affairs. 16. ADJOURN TO CLOSED SESSION: Mayor Ferrara invited public comment on the closed session items. No public comments were received. At 8:55 p.m., Mayor Ferrara adjourned the open session and the Council proceeded to closed session. 17. CLOSED SESSION: a. Conference with Labor Negotiator pursuant to Government Code Section : Agency Designated Representative: Steven Adams, City Manager Represented Employees: Arroyo Grande Police Officers' Association b. Conference with Labor Negotiator pursuant to Government Code Section : Agency Designated Representative: Steven Adams, City Manager Represented Employees: Service Employees International Union,Local 620 c. Conference with Real Property Negotiator pursuant to Government Code Section : Property: Lots 2 and 3, Tract 3018, Located on Old Ranch Road, Arroyo Grande Agency Negotiator: Steven Adams, City Manager Negotiating Party: Clarence Cabreros Under Negotiation: Price, Terms and Conditions of Potential Sale 18. RECONVENE TO OPEN SESSION Announcements, if any, will be made at the next scheduled meeting on July 8, ADJOURNMENT Mayor Ferrara adjourned the meeting at 9:15 p.m.

8 Minutes: City Council Page 8 /s/ Tony Ferrara, Mayor ATTEST: /s/ Kelly Wetmore, City Clerk (Approved at CC Mtg 07/08/2014)

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