HomeMy WebLinkAboutItem 07 - Request to Modify Conditions at 774 Caudill Street
Department Name: Community Development
Cost Center: 4003
For Agenda of: January 21, 2020
Placement: Consent
Estimated Time: N/A
FROM: Michael Codron, Community Development Director
Prepared By: Kyle Bell, Associate Planner
SUBJECT: REQUEST TO MODIFY CONDITIONS OF A PREVIOUSLY APPROVED
PROJECT AT 774 CAUDILL STREET, TO REFLECT APPROVED
CHANGES IN THE PROJECT DESIGN THAT REDUCES THE REQUESTED
DENSITY BONUS FROM 48 PERCENT TO 47.5 PERCENT, RESULTING IN
A REDUCTION OF THE NUMBER OF AFFORDABLE UNITS REQUIRED
FOR THE PROJECT. THE PROJECT IS CATEGORICALLY EXEMPT FROM
ENVIRONMENTAL REVIEW (CITY FILE NO. MOD-0775-2019).
RECOMMENDATION
Adopt a Resolution (Attachment A) modifying the previously approved Council Resolution No.
10734 (2016 Series) (Attachment B) to reflect approved changes, by the Architecture Review
Commission, in the project design that result in a reduction of units from 36 to 33, including a
reduction of affordable housing units from four to three.
DISCUSSION
This application is intended to address modifications to the Council Resolution No. 10734 (2016
Series) that approved and conditioned the affordable housing alternative incentives, in order to
reflect changes in the project as approved by the ARC (Attachment C).
On July 16, 2018, the Architectural Review Commission (ARC) approved modifications to the
project which resulted in a reduction of the number of units provided within the project from 36
to 33 units, including a reduction in the number of affordable housing units from four to three.
The original project was approved for a 48 percent density bonus and conditioned to provide four
(4) dwelling units to very-low income households. Montage Development (applicant) has applied
for a modification to this condition to reflect the revised project. The applicant is requesting to
revise Condition No 2 of Council Resolution 10734 (2016 Series) to reflect changes to the
project scope as a result of the ARC’s approval of the modified design. Revisions to Condition
No. 2 are proposed as follows:
Prior to the issuance of construction permits, the City and the project owners shall enter into an
Affordable Housing Agreement, to be recorded in the office of the San Luis Obispo County
Recorder. The agreement shall specify mechanisms and/or procedures to ensure the continued
affordability and availability of a minimum of three dwelling units to very-low income
households, to the satisfaction of the Community Development Director. The Agreement shall
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also set forth those items required by Municipal Code Section 17.140.030.B or any alternative
incentives granted pursuant to Section 17.140.040. The Agreement shall “run with the land” and
shall be binding upon all heirs, successors, or assigns of the property owner, and shall ensure
affordability of three dwelling units for a period of not less than forty-five years, or as otherwise
required by state law.
The approved 48 percent density bonus increased the total number of density units to 27.28
(where 18.5 density units would otherwise be allowed and considered as the base units). To
receive a 48 percent density bonus, the applicant was required to provide 17 percent of base units
restricted to very-low income households, as outlined in Zoning Regulation Chapter
17.140.040.E, which equaled four (4) very-low income units (rounded up from 3.145 units,
pursuant to 17.140.040.B). The approved modifications to the project design have resulted in a
reduction of the overall number of residential units from 36 to 33, making the 48 percent bonus
no longer necessary for the project. The applicant is proposing to reduce the density bonus to
47.5 percent, which would require 16 percent of the base units restricted to very-low income
households, resulting in three (3) very-low income units (rounded up from 2.96 units). The
applicant has requested that the very-low income units be dedicated as one (1) studio, and two
(2) one-bedroom units. The modification to the number of dedicated affordable units is
consistent with the State allowances and the City’s Housing Element programs and policies to
calculate affordable housing requirements associated with density bonuses for very-low income
households.
BACKGROUND
Previous Council or Advisory Body Action
On June 20, 2016, the ARC held a hearing to review the design of the proposed project which
evaluated the mass and scale of the proposed building as it relates to the neighborhood and the
South Broad Street Area Plan (ARCH-2628-2016). The ARC voted (6-0-1) to approve the
project based on the finding and subject to conditions (Attachment D).
On July 12, 2016, the City Council held a hearing to review the affordable housing alternative
incentives that included a density bonus of 48 percent and a reduction in the site development
standards for the maximum building height to extend 47.5 feet where 40 feet is normally allowed
(AFFH-3142-2016). The City Council voted (5-0) to approve the project (Attachment E).
On April 16, 2018, the ARC held a hearing to review modifications to the project design (MOD -
1394-2018). The ARC voted (6-1-0) to continue the project to a date uncertain with thirteen
directional items for the applicant to address (Attachment F).
On July 16, 2018, the ARC held a hearing to review the applicant’s responses to the thirteen
directional items addressing the modifications to the project design. The ARC voted (5-0-2) to
approve the project (Attachment G).
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Policy Context
The City’s Housing and Land Use Elements encourage mixed-use projects where they can be
found to be compatible with existing and potential future development. The Land Use Element
(LUE) encourages compatible mixed uses in commercial districts1 and specifically discusses
residential and commercial mixed use2.
One of the City’s Major City Goals is to facilitate the production of housing, including an
emphasis on affordable housing. The Housing Element provides policies and programs that
address supporting affordable housing projects and increasing density bonuses above State
allowances where appropriate (Goals 2, 4, & 6).
The Housing Accountability Act (HAA), codified in Government Code § 65589.5, applies to any
“housing development project”, and was amended to include “mixed-use developments
consisting of residential and nonresidential uses with at least two-thirds of the square footage
designated for residential use.” Government Code § 65589.5(h)(2)(B). It should be noted that the
protections in the HAA and the density bonus provisions in the Density Bonus Law (DBL), work
in concert with one another. Specifically, the legislature has determined that the benefits afforded
by the DBL do not render the protections in the HAA inapplicable. The DBL, codified in
Government Code § 65915, mandates that public agencies provide a density bonus and relax
development standards through incentives, concessions or waivers if a proposed project includes
a prescribed percentage of affordable housing. The level of the density bonus and the number of
incentives or concessions is dependent on the amount of affordable housing provided and the
level of affordability. A city cannot require a developer to provide a greater percentage of units
or deeper level of affordability than prescribed by the statute in order to qualify for the density
bonus.
Public Engagement
Consistent with the City’s Public Engagement and Noticing (PEN) Manual and the City’s
Municipal Code, the project was noticed per the City’s notification requirements for
Development Projects. Newspaper legal advertisements were posted in the New Times ten days
prior to each advisory body meeting (ARC, and City Council). Additionally, postcards were sent
to both tenants and owners of properties located within 300 feet of the project site 10 days before
each advisory body hearing. Public comment was provided to the advisory bodies through
written correspondence and through public testimony at each of the hearings.
1 LUE Policy 3.8.5. Mixed Uses. The City encourages compatible mixed uses in commercial districts.
2 LUE Policy 2.3.6. The City shall encourage mixed use projects, where appropriate and compatible with existing
and planned development on the site and with adjacent and nearby properties. The City shall support the location of
mixed use projects and community and neighborhood commercial centers near major activity nodes and
transportation corridors / transit opportunities where appropriate.
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CONCURRENCE
The proposed modification to the approved Council Resolution No. 10734 (2016 Series) to
reduce the density bonus from 48 percent to 47.5 percent, has been reviewed by various City
departments and division including: Planning, Housing, and the City’s Attorney’s Office. Staff
has not identified any unusual site conditions or circumstances that would require any other
special conditions. Other comments have been incorporated into the draft resolutions as
conditions of approval.
The approved modifications to the building design have been reviewed by the City Engineering
Division, Transportation Division, Building Division, Fire Department, and Utilities Department,
and conditions were applied as appropriate to the approved Resolution No. ARC-1014-2018.
ENVIRONMENTAL REVIEW
The project is categorically exempt under Class 32, In -Fill Development Projects; Section 15332
of the CEQA Guidelines, because the project is consistent with General Plan policies for the land
use designation and is consistent with the applicable zoning designation and regulations. The
project site occurs on a property of no more than five acres substantially surrounded by urban
uses that has no value as habitat for endangered, rare or threatened species and is served by
required utilities and public services.
FISCAL IMPACT
Budgeted: N/A Budget Year: N/A
Funding Identified: No
Fiscal Analysis:
Funding Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing Cost
General Fund N/A
State
Federal
Fees
Other:
Total
When the General Plan was prepared, it was accompanied by a fiscal impact analysis, which
found that overall the General Plan was fiscally balanced. Since the proposed project is
consistent with the General Plan, it has a neutral fiscal impact. There is no fiscal impact
associated with the approval of this project.
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ALTERNATIVES
1. Deny the request for a reduction in density bonus from 48 percent to 47.5 percent, based on
findings that the request is inconsistent with alternative or additional incentive regulations
within the municipal code.
2. Continue the project and provide direction to the applicant and staff on pertinent issues.
Attachments:
a - Draft Resolution
b - Council Resolution No. 10734 (2016 Series)
c - COUNCIL READING FILE - Project Plans
d - COUNCIL READING FILE - ARC Report & Resolution 6.20.16
e - COUNCIL READING FILE - Council Report & Meeting Minutes 7.12.16
f - COUNCIL READING FILE - ARC Report & Meeting Minutes 4.16.18
g - COUNCIL READING FILE - ARC Report, Resolution, & Minutes 7.12.18
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RESOLUTION NO. _______ (2020 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING THE MODIFICATIONS TO
COUNCIL RESOLUTION NO. 10734 (2016 SERIES) OF A PREVIOUSLY
APPROVED PROJECT AT 774 CAUDILL STREET, TO REFLECT
CHANGES IN THE PROJECT DESIGN THAT REDUCES THE
REQUESTED DENSITY BONUS FROM 48 PERCENT TO 47.5
PERCENT, RESULTING IN A REDUCTION OF THE NUMBER OF
AFFORDABLE UNITS REQUIRED FOR THE PROJECT. THE
PROJECT IS CATEGORICALLY EXEMPT FROM ENVIRONMENTAL
REVIEW (CLASS 32, INFILL DEVELOPMENT). REVIEW AS
REPRESENTED IN THE CITY COUNCIL AGENDA REPORT AND
ATTACHMENTS DATED JANUARY 21, 2020 (774 CAUDILL, AFFH-
3142-2016/MOD-0775-2019)
WHEREAS, on May 2, 2016, the applicant, Caudill Street Partners, submitted an
application to request alternative incentives for affordable housing that include a 48 percent
density bonus and a reduction in site development standards for the maximum building height to
extend to 47.5 feet where 40 feet is normally allowed, for a project located at 774 Caudill Street ;
and
WHEREAS, on June 20, 2016, the Architectural Review Commission of the City of San
Luis Obispo conducted a public hearing in the Council Hearing Room of City Hall, 990 Palm
Street, San Luis Obispo, California, with a 6-0-1 vote to approve the mixed-use project subject to
the findings and conditions of Resolution No. ARC-1011-16, pursuant to a proceeding instituted
under ARCH-2628-2016, Caudill Street Partners, applicant; and
WHEREAS, on July 12, 2016, the City Council of the City of San Luis Obispo
conducted a public hearing in the Council Chambers of City Hall, 990 Palm Street, San Luis
Obispo, California, with a 5-0 vote to approve the affordable housing alternative incentives that
included a density bonus of 48 percent and a reduction in the site development standards for the
maximum building height to extend 47.5 feet where 40 feet is normally allowed subject to the
findings and conditions of Council Resolution No. 10734 (2016 Series), pursuant to a proceeding
instituted under AFFH-3142-2016, Caudill Street Partners, applicant; and
WHEREAS, on April 16, 2018, the Architectural Review Commission of the City of San
Luis Obispo conducted a public hearing in the Council Hearing Room of City Hall, 990 Palm
Street, San Luis Obispo, California, with a 6-1-0 vote to continue a request, by a new applicant
who acquired the property, for a design modification to the previously approved project design
with direction to the applicant and staff on pertinent issues, pursuant to a proceeding instituted
under MOD-1394-2018, Montage Development, applicant; and
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Resolution No. ______ (2020 Series) Page 2
R ______
WHEREAS, on July 16, 2018, the Architectural Review Commission of the City of San
Luis Obispo conducted a public hearing in the Council Hearing Room of City Hall, 990 Palm
Street, San Luis Obispo, California, with a 5-0-2 vote to approve the project design
modifications subject to the findings and conditions of Resolution No. ARC-1014-18, pursuant
to a proceeding instituted under MOD-1394-2018, Montage Development, applicant; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing
in the Council Chambers of City Hall, 990 Palm Street, San Luis Obispo, California, on January
21, 2020, pursuant to a proceeding instituted under MOD-0775-2019, Montage Development,
applicant; and
WHEREAS, the City Council has duly considered all evidence, including the testimony
of the applicant, interested parties, and the evaluation and recommendations by staff, presented at
said hearing, and
WHEREAS, notices of said public hearings were made at the time and in the manner
required by law; and
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
Section 1. Findings. Based upon all the evidence, the City Council makes the following
findings to approve the modification (MOD-0775-2019) of the previously approved project
(AFFH-3142-2016), hereby granting final approval to reduce the density bonus from 48 percent
to 47.5 percent:
1. The project will not be detrimental to the health, safety, or welfare of those working or
residing in the vicinity since the proposed project is consistent with the site’s zoning
designation, and will be subject to conformance with all applicable building, fire, and
safety codes.
2. The proposed project will provide quality affordable housing consistent with the intent of
Chapter 17.140 of the Municipal Code to facilitate the production of affordable housing
units.
3. The request for a density bonus is consistent with the intent of Housing Element
programs 2.17, 6.10, and 6.19, and the alternative affordable housing incentives outlined
in Section 17.140.070 of the City’s Zoning Regulations.
Section 2. Environmental Review. The project is categorically exempt under Class 32,
In-Fill Development Projects; Section 15332 of the CEQA Guidelines, because the project is
consistent with General Plan policies for the land use designation and is consistent with the
applicable zoning designation and regulations. The project site occurs on a property of no more
than five acres substantially surrounded by urban uses that has no value as habitat for
endangered, rare or threatened species and is served by required utilities and public services.
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Resolution No. ______ (2020 Series) Page 3
R ______
Section 3. Action. The City Council does hereby grant final approval of the
modification to Council Resolution No. 10734 (2016 Series) to reduce the previously approved
density bonus from 48 percent to 47.5 percent (MOD-0775-2019/AFFH-3142- 2016), subject to
the following conditions:
Planning Department
1. Final project design and construction drawings shall be in substantial compliance with the
project plans approved by the Architectural Review Commission and the City Council. A
separate full-size sheet shall be included in working drawings submitted for a building
permit that list all conditions, and code requirements of project approval as Sheet No. 2
(ARCH-2628-2016 / MOD-1394-2018, and AFFH-3142-2016 / MOD-0775-2019).
Reference should be made in the margin of listed items as to where in plans requirements
are addressed, as applicable. Any change to approved design, colors, materials,
landscaping or other conditions of approval must be approved by the Community
Development Director or Architectural Review Commission, as deemed appropriate.
2. Prior to the issuance of construction permits, the City and the project owners shall enter
into an Affordable Housing Agreement, to be recorded in the office of the San Luis
Obispo County Recorder. The agreement shall specify mechanisms and/or procedures to
ensure the continued affordability and availability of a minimum of three dwelling units
to very-low income households, to the satisfaction of the Community Development
Director. The Agreement shall also set forth those items required by Municipal Code
Section 17.140.030.B or any alternative incentives granted pursuant to Section
17.140.040. The Agreement shall “run with the land” and shall be binding upon all heirs,
successors, or assigns of the property owner, and shall ensure affordability of three
dwelling units for a period of not less than forty-five years, or as otherwise required by
state law.
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Resolution No. ______ (2020 Series) Page 4
R ______
Indemnification
3. The Owner/Applicant shall defend, indemnify and hold harmless the City or its agents or
officers and employees from any claim, action or proceeding against the City or its
agents, officers or employees, to attack, set aside, void, or annul, in whole or in part, the
City's approval of this project. In the event that the City fails to promptly notify the
Owner/ Applicant of any such claim, action or proceeding, or that the City fails to
cooperate fully in the defense of said claim, this condition shall thereafter be of no further
force or effect.
Upon motion of _______________________, seconded by _______________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _______ day of ____________ 2020.
____________________________________
Mayor Heidi Harmon
ATTEST:
_____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______________ day of _______________________, 2020.
____________________________________
Teresa Purrington, City Clerk
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RESOLUTION NO. 10734 (2016 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING THE ALTERNATIVE
INCENTIVES TO PROVIDE FOR AFFORDABLE HOUSING THAT
INCLUDE A DENSITY BONUS OF 48 PERCENT AND A REDUCTION
IN SITE DEVELOPMENT STANDARDS FOR THE MAXIMUM
BUILDING HEIGHT TO EXTEND TO 47.5 FEET WHERE 40 FEET IS
NORMALLY PERMITTED, WITH A CATEGORICAL EXEMPTION
FROM ENVIRONMENTAL REVIEW PURSUANT TO SECTION 15332
OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
GUIDELINES AS REPRESENTED IN THE CITY COUNCIL AGENDA
REPORT AND ATTACHMENTS DATED JULY 12, 2016 (774 CAUDILL
AFFH-3142-2016)
WHEREAS, the applicant, on May 2, 2016, submitted an application to request
alternative incentives for affordable housing that include a forty-eight (48) percent density bonus
and a reduction in site development standards for the maximum building height to extend to 47.5
feet where 40 feet are normally permitted, for a project located at 774 Caudill Street; and
WHEREAS, on June 12, 2016, the Architectural Review Commission of the City of San
Luis Obispo conducted a public hearing in the Council Hearing Room of City Hall, 990 Palm
Street, San Luis Obispo, California, for the purpose of reviewing the design of a new four story
mixed-use project (ARCH -2628-2016), Caudill Street Partners, applicant; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing
in the Council Chambers of City Hall, 990 Palm Street, San Luis Obispo, California, on July 12,
2016, pursuant to a proceeding instituted under AFFH-3142-2016, Caudill Street Partners,
applicant; and
WHEREAS, the City Council has duly considered all evidence, including the testimony
of the applicant, interested parties, and the evaluation and recommendations by staff, presented at
said hearing, and
WHEREAS, notices of said public hearings were made at the time and in the manner
required by law.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
R 10734
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Resolution No. 10734 (2016 Series) Page 2
SECTION 1. Firadiiigs. Based upon all the evidence, the City Council makes the
following findings:
1. The project will not be detrimental to the health, safety, or welfare of those working
or residing in the vicinity since the proposed project is consistent with the site's
zoning designation, and will be subject to conformance with all applicable building,
fire, and safety codes.
2. The proposed project will provide quality affordable housing consistent with the
intent of Chapter 17.90 of the Municipal Code, and the requested density bonus and
reduction to site development standards is necessary to facilitate the production of
affordable housing units.
3. The requests for a density bonus and reduction to site development standards for
maximum building height are consistent with the intent of Housing Element programs
2. 17, 6.10, and 6. 19, and the alternative affordable housing incentives outlined in
Section 17.90.060 of the City's Zoning Regulations.
4. The proposed height, mass and scale of the project will not negatively alter the
overall character of the neighborhood or the streets appearance because the South
Broad Street Area Plan requires that mixed-use buildings provide residential units in
the upper levels of a structure with a minimum height allowance of 25 feet and at
least 80% of the building fagade to be constructed along the property build -to lines.
The project is consistent with the South Broad Street Area Plan and Community
Design Guidelines because the development is designed in a manner that does not
deprive reasonable solar access to adjacent properties; by positioning the majority of
the building mass along the street frontage that incorporates vertical and horizontal
wall plan offsets that provide high-quality and aesthetically pleasing architectural
design.
SECTION 2. Environmental Review. The project is categorically exempt under Class
32, In -Fill Development Projects; Section 15332 of the CEQA Guidelines, because the project is
consistent with General Plan policies for the land use designation, is consistent with the
applicable zoning designation, is consistent with Government Code section 65915(f)(5) which
states that granting a density bonus does not require zoning change or other discretionary
approval, would not have a specific adverse impact upon public health and safety or the physical
environment because the project is designed in a manner that does not deprive reasonable solar
access to adjacent properties and is subject to conformance with all applicable building, fire, and
safety codes, and the property is not listed in the California Register of Historic Resources. The
project site occurs on a property of no more than five acres substantially surrounded by urban
uses that has no value as habitat for endangered, rare or threatened species as the site is located
on an existing developed property.
R 10734
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Resolution No. 10734 (2016 Series) Page 3
SECTION 3. Action. The City Council does hereby grands final approval of the
alternative incentives to provide for affordable housing that include a density bonus of 48 percent
and a reduction in the site development standards for the maximum building height to extend
47.5 feet where 40 feet is normally permitted (AFFH-3142-2016), subject to the following
conditions:
Planning Department
1. Final project design and construction drawings shall be in substantial compliance
with the project plans approved by the ARC and the City Council. A separate full-size
sheet shall be included in working drawings submitted for a building permit that list
all conditions, and code requirements of project approval as Sheet No. 2 (ARCH -
2628 -2016 & AFFH-3142-2016). Reference should be made in the margin of listed
items as to where in plans requirements are addressed. Any change to approved
design, colors, materials, landscaping or other conditions of approval must be
approved by the Director or Architectural Review Commission, as deemed
appropriate.
2. Prior to the issuance of construction permits, the city and the project owners shall
enter into an Affordable Housing Agreement, to be recorded in the office of the
county recorder. The agreement shall specify mechanisms or procedures to assure the
continued affordability and availability of a minimum of 4 dwelling units to very -low
income households, to the satisfaction of the Community Development Director. The
agreement shall also set forth those items required by Section 17.90.030(B) or any
alternative incentives granted pursuant to Section 17.90.060. The agreement shall run
with the land and shall be binding upon all heirs, successors or assigns of the project
or property owner, and shall ensure affordability for a period of not less than forty-
five years, or as otherwise required by state law.
3. The Owner/Applicant shall defend, indemnify and hold harmless the City or its
agents or officers and employees from any claim, action or proceeding against the
City or its agents, officers or employees, to attack, set aside, void, or annul, in whole
or in part, the City's approval of this project. In the event that the City fails to
promptly notify the Owner / Applicant of any such claim, action or proceeding, or
that the City fails to cooperate fully in the defense of said claim, this condition shall
thereafter be of no further force or effect.
R 10734
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Resolution No. 10734 (2016 Series) Page 4
Upon motion of Council Member Christianson, seconded by Council Member Ashbaugh, and on
the following roll call vote:
AYES: Council Members Ashbaugh, Christianson and Rivoire,
Vice Mayor Carpenter and Mayor Marx
NOES: None
ABSENT: None
Mayor Ja. M
ATTEST:
Lee Price, MMC
Interim City Clerk
APPROVED AS TO FORM:
ty Attorney
IN WITNESS WHEREOF, I have he%unto set my hand and affixed the official seal of the City
of Sail Luis Obispo, California, this day of -'U I Ll
Lee Price, MMC
Interim City Clerk
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