ACTION MINUTES

REGULAR MEETING OF THE CITY COUNCIL

Tuesday, December 12, 2023 at 6:00 P.m. - 10:00 P.m.

Hybrid City Council Chamber/Virtual Zoom Meeting

215 East Branch Street, Arroyo Grande

Council Members Present:

• Mayor Ray Russom, 
• Mayor Pro Tem Barneich, 
• Council Member George, 
• Council Member Guthrie, 
• and Council Member Secrest 

Staff Present:

• Interim City Manager, 
• Administrative Services Director Nicole Valentine, 
• and City Clerk Jessica Matson 

This meeting was conducted in a hybrid in-person/virtual format. 

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1.

CALL TO ORDER

Mayor Ray Russom called the Regular City Council Meeting to order at 6:00 p.m.

2.

ROLL CALL

City Clerk Matson took roll call.

3.

MOMENT OF REFLECTION

4.

FLAG SALUTE

Members of the Arroyo Grande Lions Club led the flag salute. 

5.

AGENDA REVIEW

Mayor Ray Russom requested to adjourn the meeting in memory of Warren Hoag.

Mayor Ray Russom commented that she and Mayor Pro Tem Barneich had a conflict with Item 10.a. and recommended hearing the item after Item 12.d. and hearing Item 13 after Item 9.

5.a

Closed Session Announcements

City Council Closed Session Meeting of November 28, 2023

a) PUBLIC EMPLOYMENT PURSUANT TO GOVERNMENT CODE SECTION 54957(b):

PUBLIC EMPLOYEE APPOINTMENT

Position: City Manager

City Attorney Rosen announced that Council adjourned the Closed Session at 8:44 p.m. and there was no reportable action.

5.b

Ordinances read in title only

Move that all ordinances presented at the meeting shall be read by title only and all further readings be waived.

• Moved by Mayor Ray Russom
  Seconded by Mayor Pro Tem Barneich

  AYES (5)

  Mayor Ray Russom, Mayor Pro Tem Barneich, Council Member George, Council Member Secrest, and Council Member Guthrie

  Passed (5 to 0)

6.

SPECIAL PRESENTATIONS

6.a

Introduction of New Employee, Julie Hawkins, Deputy City Clerk/Communications Coordinator

City Clerk Matson introduced new employee Julie Hawkins, Deputy City Clerk/Communications Coordinator and provided a summary of her educational and professional background.

6.b

Interim City Manager Communications

Interim City Manager Robeson provided information regarding current Recreation events; and discussed upcoming items for Council consideration.

Interim Public Works Director/City Engineer Sweeney provided an update regarding construction activity in the Village.

Mayor Ray Russom invited public comment. Speaking from the public was Alexandria. No further public comments were received.

No action was taken on this item.

• Receive correspondence/comments as presented by the Interim City Manager and Provide direction, as necessary.

7.

CITY COUNCIL REPORTS

Reports are made during the Second Council Meeting each month.

May Ray Russom made a comment regarding the South San Luis Obispo County Sanitation District equipment repairs currently underway.

8.

COMMUNITY COMMENTS AND SUGGESTIONS

Mayor Ray Russom invited public comment. Speaking from the public was Shirley Horacek. No further public comments were received. 

9.

CONSENT AGENDA

Mayor Ray Russom asked the Council if there were any questions or any items to be pulled from the consent agenda for further discussion.  

Mayor Ray Russom invited public comment. Speaking from the public was Patty Welch.  No further public comments were received.

• Moved by Mayor Pro Tem Barneich
  Seconded by Council Member George

  Approve Consent Agenda Items 9.a. through 9.i., with the recommended courses of action.

  AYES (5)

  Mayor Ray Russom, Mayor Pro Tem Barneich, Council Member George, Council Member Secrest, and Council Member Guthrie

  Passed (5 to 0)

9.a

Consideration of Cash Disbursement Ratification

• 1) Ratified the listing of cash disbursements for the period of November 1 through November 15, 2023; 2) Determined that ratifying the cash disbursements is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.)

9.b

Consideration of Statement of Investment Deposits

• 1) Received and filed the report listing investment deposits of the City of Arroyo Grande as of October 31, 2023, as required by Government Code Section 53646(b); 2) Determined that receiving the report of investment deposits is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.)

9.c

Consideration of Fiscal Year 2023-24 First Quarter Status Report and Request to Approve Fifteen Budget Adjustment Requests

• Considered, received, and filed the FY 2023-24 First Quarter Financial Status Report; and approved fifteen Budget Adjustment Requests.

9.d

Annual Financial Report for Fiscal Year 2022-23 – Receipt and Use of Water and Sewer Capacity and Connection Fees/Charges

• 1) Received and filed the annual report of the receipt and use of water and sewer capacity and connection fees and charges, in compliance with Government Code Section 66013; 2) Determined that ratifying the annual report is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.)

9.e

Consideration of Adoption of a Resolution Amending the Citywide Combined Salary Schedule and Approving One Budget Adjustment Request

• Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING THE UPDATED CITYWIDE COMBINED SALARY SCHEDULE AND AUTHORIZING THE APPROPRIATION OF $4,000 FROM THE GENERAL FUND FOR THE BALANCE OF THE FY 2023-2024", and directed Staff to take any steps necessary to otherwise ratify the salary change for the impacted employees.

9.f

Consideration of a Resolution Accepting the Status Report on Development Impact Fees (AB 1600)

• 1) Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ACCEPTING THE STATUS REPORT ON DEVELOPMENT IMPACT FEES (AB 1600)"; and 2) Determined that adopting a resolution accepting the status report on the receipt and use of Development Impact Fees (AB 1600) is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, Cal. Code Regs., tit. 14, §§ 15060, subd. (c)(2)-(3), 15378.)

9.g

Approval of Minutes

• Approved the minutes of the Regular City Council Meeting of November 28, 2023, as submitted.

9.h

Consideration of Selection of Council Member Guthrie as Mayor Pro Tem for Calendar Year 2024

• Appointed Council Member Guthrie as the Mayor Pro Tem for the next one-year period, pursuant to Council policy.

9.i

Consideration of an Award of Contract to SP Maintenance Services, Inc. for Street Sweeping Services

• 1) Awarded a contract for street sweeping services to SP Maintenance, Inc. for the next 2 years in the amount of $442,440 ($221,220/year); 2) Authorized the City Manager to approve extensions for year 3, at $227,776, and year 4, at $234,332, upon favorable performance in the City Manager’s discretion; 3) Approved a budget amendment of $51,010 to address the anticipated budget deficit from the increase in contrast costs through the end of FY 2023-24; and 4) Found that these services are exempt from the California Environmental Quality Act (CEQA) under the Class 4 exemption, which applies to minor public or private alterations in the condition of land, water, and/or vegetation where the project does not involve removal of healthy, mature, scenic trees except for forestry and agricultural purposes. (State CEQA Guidelines, § 15304.)

10.

PUBLIC HEARINGS

10.a

Consideration of CUP23-002; AG Creek Stream Gauge Fish Passage Improvement, Requested Fee Waiver and Finding Action Exempt from Review Under CEQA Pursuant to State Guidelines § 15301, 15302, & 15304; Applicant–Steph Wald, Creek Lands Conservation

This item was heard out of order.

Mayor Ray Russom and Mayor Pro Tem Barneich declared a conflict of interest due to living within 300 ft. of the project, recused themselves and left the meeting.

Council Member Guthrie presided over the meeting.

Associate Planner Holub presented the item and responded to questions from Council.

Council Member Guthrie invited public comment. No public comments were received.

• Moved by Council Member George
  Seconded by Council Member Secrest

  1) Adopt a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING CONDITIONAL USE PERMIT NO. 23-002 TO IMPLEMENT A STREAM GAUGE FISH PASSAGE IMPROVEMENT PROJECT ON PROPERTY LOCATED WITHIN ARROYO GRANDE CREEK IN PROXIMITY TO CLARENCE AVENUE AND MYRTLE STREET (APN 077-572-031), APPLIED FOR BY CREEK LANDS CONSERVATION (CLC), APPROVING THE REQUESTED FEE WAIVER, AND FINDING THE PROJECT EXEMPT FROM CEQA"; and 2) Determine that this project is categorically exempt per Section 15301, 15302 and 15304 of the CEQA Guidelines.

  AYES (3)	Council Member George, Council Member Secrest, and Council Member Guthrie
  ABSENT (2)	Mayor Ray Russom, and Mayor Pro Tem Barneich

  Passed (3 to 0)

10.b

Public Hearing to Consider Introduction of an Ordinance Amending Title 13 of the Arroyo Grande Municipal Code Regarding the Water Shortage Contingency Plan and Finding this Action Exempt from CEQA

City Engineer/Interim Public Works Director presented the item and responded to questions from Council. 

Mayor Ray Russom opened the public hearing.  Speaking from the public was Alexandria.  Upon hearing no further public comments, Mayor Ray Russom closed the public hearing. 

• Moved by Council Member Guthrie
  Seconded by Council Member George

  1) Introduce an Ordinance entitled: "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AMENDING SECTION 13.07.030 OF THE ARROYO GRANDE MUNICIPAL CODE REGARDING WATER SHORTAGE CONTINGENCY PLANNING AND FINDING THE ORDINANCE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT"; and 2) Find that the Ordinance is exempt from the California Environmental Quality Act (CEQA) because it will not result in a direct or reasonably foreseeable indirect physical change in the environment. (State CEQA Guidelines sections 15060, subd. (c)(2), (3); 15061(b)(3)).

  AYES (5)

  Mayor Ray Russom, Mayor Pro Tem Barneich, Council Member George, Council Member Secrest, and Council Member Guthrie

  Passed (5 to 0)

11.

OLD BUSINESS

None.

12.

NEW BUSINESS

12.a

Consideration of Appointment of City Manager and Approval of Employment Agreement

City Attorney Rosen presented the item recommending that the Council approve the negotiated Employment Agreement with Matthew J. Downing, to serve as Arroyo Grande’s City Manager, and read into the record the negotiated terms including a salary of $235,900 annually; cost-of-living-adjustments (COLA) as available to all management employees; if terminated without cause, he will receive 6 months salary and severance pay and benefits during the time he is not employed; health and welfare benefits available to all employees; $2,200 deferred compensation annually;  $150,000 term life insurance policy; monthly cell phone allowance; $500 a month auto allowance; 13 years service credit towards annual leave earning him 33 days per year of leave in addition to a 56-hour initial one-time grant of paid leave; 40 hours of management leave annually that would not accrue from year to year.

Mayor Ray Russom invited public comment. Speaking from the public were Patty Welsh, and Ben Fine. No further public comments were received.

Council discussion ensued. Mayor Ray Russom reopened public comment. Speaking from the public was Ben Fine. No further comments were received.

• Moved by Council Member George
  Seconded by Mayor Pro Tem Barneich

  1) Approve the negotiated Employment Agreement with Matthew J. Downing , to serve as Arroyo Grande’s City Manager, following the required oral report under the Brown Act and subject to any minor, non-substantive changes necessary for finalization; and 2) Find the action is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378)

  AYES (5)

  Mayor Ray Russom, Mayor Pro Tem Barneich, Council Member George, Council Member Secrest, and Council Member Guthrie

  Passed (5 to 0)

12.b

Consideration of Preliminary Approval of Community Development Block Grant Projects for Year 2024 And Finding That This Action Is Exempt Under The California Environmental Quality Act, State Guidelines Section 15061

Community Development Director Pedrotti introduced the item. Planning Manager Perez presented the report and responded to questions from Council.

Mayor Ray Russom invited public comment. No public comments were received.

Council discussion ensued regarding grant allocations.

• Moved by Mayor Ray Russom
  Seconded by Council Member Guthrie

  Preliminary approve proposed projects to be funded with the City’s allocation of Community Development Block Grant (CDBG) funds for the Year 2024, as amended to provide $12,283 to the 5Cities Homeless Coalition and $5,732 to the curb ramp and sidewalk project, and find that the preliminary approval of projects is exempt from CEQA, pursuant to CEQA Guidelines Section 15061 subd. (b)(3). 

  AYES (5)

  Mayor Ray Russom, Mayor Pro Tem Barneich, Council Member George, Council Member Secrest, and Council Member Guthrie

  Passed (5 to 0)

12.c

Discussion to Consider Waiving or Reimbursing Certain Building Permit Fees Related to Repair or Reconstruction of Homes Damaged by Flooding in 2023 Declared Local Emergencies

Community Development Director Pedrotti presented the report and responded to questions from Council.

Mayor Ray Russom invited public comment. No public comments were received.

Council discussion ensued regarding caps on waiver amounts, timing requirements for completing the fee waiver, and expiration dates.

City Attorney Rosen commented that a proposed resolution would come back to Council at a future meeting for consideration.

• Moved by Mayor Pro Tem Barneich
  Seconded by Council Member Guthrie

  Council directed staff to prepare a resolution in line with Council direction to include striking the first line of findings; $5,000 cap on total amount of waivers for the demolition, building permit, and inspection fees; requirement of 90 days to complete the fee waiver with a 12 month expiration; and the second public purpose finding supporting the action and determining that the item is exempt from CEQA.

  AYES (5)

  Mayor Ray Russom, Mayor Pro Tem Barneich, Council Member George, Council Member Secrest, and Council Member Guthrie

  Passed (5 to 0)

12.d

Review and Approve Council Appointments to Regional and Local Boards and Committees

City Clerk Matson presented the item and responded to questions from Council.

Mayor Ray Russom invited public comment. No public comments were received.

Council discussed representation on the regional committees and boards. Mayor Ray Russom commented that the Zone 3 Water Advisory Board changed their meeting time to 10:30 a.m. and asked is another Councilmember could be alternate to the Board due to her work schedule. Council Member Secrest volunteered to be the alternate.

• Moved by Mayor Ray Russom
  Seconded by Council Member George

  Update CCCE Policy Board term to January 1 – December 31; remove TBID Advisory Board from the list of Boards and Committees; appoint Council Member Secrest as alternate to the Zone 3 Water Advisory Board; Direct the City Clerk to update Fair Political Practices Commission (FPPC) Form 806 (Agency Report of Public Official Appointments) for posting on the City website; and Direct staff to work with CCCE on a revised MOU, if necessary.

  AYES (5)

  Mayor Ray Russom, Mayor Pro Tem Barneich, Council Member George, Council Member Secrest, and Council Member Guthrie

  Passed (5 to 0)

13.

COUNCIL COMMUNICATIONS

This item was heard out of order.

Mayor Ray Russom requested staff provide an update on the wayfinding signs in the Village at a future meeting. Council Member Secrest concurred. Interim City Manager Robeson commented that this item can come back to Council in March 2024 as part of City Manager Communications.

14.

ADJOURNMENT

There being no further business to come before the City Council, Council Member Guthrie adjourned the meeting at 8:29 p.m. in memory of Warren Hoag, former Arroyo Grande Architectural Review Committee Member and longtime community volunteer and leader.