HomeMy WebLinkAbout02/23/1993, 1 - MARGARITA AREA STUDY SESSION lllunlYlll�lllllll�l II MEETING GATE
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COUNCIL AGENDA REPORT ITEM NUMBER:
FROM: Arnold B. Jonas, Community Development Director
BY: Glen Matteson, Associate Planner
SUBJECT: Margarita area study session
CAO RECOMMENDATION:
1. Confirm the City's commitment to complete the specific plan
for the area, annex it, and provide services in a timely
way, all as proposed by the general plan.
2 . Confirm the general plan requirement that the City have
sufficient water supply for existing and potential
development within the City, plus the annexed area, before
building in any part of the specific plan area (except the
minor piece on Rockview Place) .
3 . Suggest the owners submit a draft or outline development
agreement for further discussion and consideration, as
preparation of the specific plan proceeds.
BACKGROUND
Requested Direction
RRM has asked for Council direction on three points: schedule for
service availability; an early initial development phase; a
development agreement. The property owners desire some assurance
that development can proceed in a reasonable time, before
committing funds to complete the EIR and the specific plan.
Data Summary
Owners: J. E. King, et. al. ; Sierra Gardens of S.L.O. Limited;
L.J. Martinelli, trustee, et. al. , D. Garcia, et. al. ,
I . Brughelli, trustee, et. al.
Representatives: RRM Design Group (Eric Justesen) ; John
Wallace & Associates
Land Use Element map:
adopted: conservation/open space; interim conservation/open
space; rural industrial; medium-density
residential
proposed: conservation/open space; interim open space; park;
recreation; business park; medium-density
residential
Environmental status: focused EIR to be prepared
Action deadline: none provided by state law
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Situation
The adopted general plan Land Use Element identifies several
major potential expansion areas which are reserved primarily for
residential development, including the Margarita area. The
pending Land Use Element update would enlarge the Margarita
planning area (attached map) and provide more specific guidance
on the type of eventual development. The environmental impact
report (EIR) on the update has been published, and adoption is
anticipated by June.
According to the Land Use Element, development within a major
expansion area cannot occur until the City has adopted a specific
plan for the area. A specific plan shows the design and timing
of land uses, roads, and public facilities in more detail than
the general plan, but not so precisely as subdivision maps or
construction plans. Also, the Land Use Element says the City
must have sufficient water supply to serve the expansion-area
development, plus existing and potential development elsewhere in
the City. This requirement cannot be fulfilled until one or more
of the following projects are completed: Salinas expansion;
Nacimiento connection; water reclamation. An optimistic time
frame for completing these water projects is mid-1995 to the end
of the year 2000.
In fall 1988, RRM Design Group, representing some of the property
owners in the Margarita planning area, submitted a draft specific
plan. In May 1990, at RRM's request, the City Council approved a
"guidance package" which outlined responsibilities for RRM and
City staff in preparing a specific plan for the whole area,
responding to concerns raised by the 1988 draft. In March 1992 ,
Council endorsed a revised concept plan and commented on some
alternative features, which were to serve as the project
description for a focused EIR on the specific plan. Council's
action included consideration of issues raised at a Planning
Commission hearing and neighborhood workshops.
Since the last Council consideration in March 1992, RRM and City
staff planners have refined the concept plan and alternatives and
prepared a draft work scope for the EIR. The specific plan work
scope assumed that many of the citywide impacts would be
addressed by the general plan EIR. (The general plan EIR
anticipates the maximum probable extent and intensity of
development within the Margarita area. ) Work has fallen behind
the schedule outlined in the guidance package, partly because RRM
has had difficulty making financial arrangements with the
property owners.
The concept plan shows about 213 acres of parks and open space
(about half of the planning area) , a business park, an elementary
school, neighborhood convenience centers, and about 1, 100
dwellings in a range of densities. The main circulation feature,
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and the key to alternative neighborhood layouts, is an extension
of Prado Road to connect with Broad Street at Industrial Way or
at Tank Farm Road.
The 1988 "airport area conceptual land use plan" included the
Margarita area. This map was seen as a step in preparing a
specific plan for the airport area. Now, the County intends to
include development standards for the airport area in its update
of the San Luis Obispo area plan. A specific plan for the
Margarita area can proceed ahead of further work on a specific
plan for the whole airport area.
Nearly all the expense of preparing the specific plan and EIR is
borne by the property owners. In the guidance package, the
Council authorized up to 900 hours of City staff time for this
project. So far, staff has spent about 150 hours.
1. Amount and timing of water
The owners want an assurance that the City will obtain sufficient
supplemental water to enable implementation of the specific plan,
considering the recent rejection of state water by city voters.
While sufficient water cannot be guaranteed, due to factors
beyond the City's control, Council can confirm adopted policies,
and programs underway, that would enable development to start
later this decade. The need for additional sewage treatment
capacity cannot be overlooked.
The City's safe annual yield is 7 , 735 acre-feet (AF) , while its
normal annual usage is about 8 , 200 AF. The general plan EIR
concludes that a total of about 9, 900 AF to 11, 000 AF will be
needed for full development within the urban reserve line,
depending on the effectiveness of conservation measures. This
range of requirements means the City will need to increase safe
yield by 2 , 200 to 3 , 300 AF. In addition, about 800 AF will be
needed to compensate for reduced yield of existing reservoirs due
to siltation. Adding a contingency for continuing to supply
Cuesta College brings the total requirement for additional water
supply, in round numbers, to 3 , 200 to 4 , 300 AF. The City will
aim for an overall increase of 6, 300 AF, providing a 2 , 000-AF
reliability reserve beyond the higher end of the range. The
reliability reserve is intended to cover reduced or lost yield,
not to support additional development.
Full development within the 1992 city limits, plus compensation
for siltation, would require 2 , 100 to 3 , 100 AF more than current
safe annual yield, depending on the effectiveness of conservation
measures. All expansion development would need an additional
approximately 1, 000 AF. The Margarita area itself is projected
to need as much as 589 AF of potable City water, without use of
gray water or reclaimed water, or as little as 271 AF of potable
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water, with extensive use of reclaimed water (attached table) .
The City's proposed Salinas Reservoir expansion would increase
safe annual yield by about 1, 650 AF, with completion expected
between mid-1995 and mid-1997 . A preliminary design has been
completed and an EIR is being written, but the project has not
received necessary approvals. Also, transfer of reservoir
ownership is required.
The City has tentatively requested 6, 235 AF from the County's
Nacimiento project, with completion expected between mid-1997 and
the end of 2000, though a contractual amount has not been
decided. Project design, environmental review, and approvals are
yet to be completed.
Through the City's reclaimed water program, up to 1, 600 AF of
reclaimed water would be available as early as Spring 1995. (Of
this amount 500 AF to 600 AF would offset existing use of City
water for landscape irrigation. ) A preliminary design has been
completed, and an EIR is about to be published, but project
approvals have not been obtained.
The amounts and target dates identified above for Salinas,
Nacimiento, and reclaimed water all assume that no significant
obstacles arise to delay or prevent the projects.
The City does not have an adopted procedure for "reserving water"
from certain sources for certain projects or areas. However, the
Land Use Element (update hearing draft) says:
"Though the periods of development of the major residential
expansion areas may overlap, the City prefers to complete
one neighborhood before beginning another. The sequence of
development of the areas will be decided based on the
affordability of dwellings, and other public benefits,
primarily open space. The area committing to development of
the largest number of dwellings affordable to low-income or
moderate-income residents would be developed first, with
open space dedication or other public benefits used to
decide the order if two or three areas offer substantially
the same housing affordability.
"The anticipated intervals for the major expansion areas'
development are: first area, 1993 - 2000; second area, 2001
- 2007; third area, 2008 - 2017 . "
Of the three named major expansion areas, the Margarita area is
the farthest along in specific planning. The Irish Hills area
and the Orcutt area have not begun. The adopted Land Use Element
shows the Dalidio area as a major expansion area, but the update
says that each of the three ownerships within that area may
proceed with a separate development plan, with the ownerships'
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common boundaries in a permanent open space designation. The
airport area --outside the Margarita portion-- does not fit in
the approach to setting priorities cited above, and staff intends
that this situation be clarified before the update is adopted.
In any case, the City intends to have sufficient water for
development of all the expansion areas starting in the late
1990's, if proposed projects remain on schedule.
Assuming availability of sufficient water in 1997, the following
is a possible schedule for development of the Margarita area.
Complete refined concept plan - Spring 1993
Complete EIR workscope, contract - Spring 1993
Complete draft EIR - Summer 1993
Certify EIR, adopt specific plan - Winter 1994
Annex planning area - Summer 1994
Process tract maps - Winter 1995
Begin initial tract improvements - Spring 1995*
Apply for first phase building
permits - Winter 1997
Issue first phase building permits - Spring 1997
occupancy of initial phase - Fall 1997
Residential construction at about
100 dwellings/year until . . . 2007 .
(The growth management policies could accommodate "bunching"
about 300 dwellings in the initial year, if needed to fund
the significant start-up costs of public improvements. )
*Tract improvements should begin only after the City has
obtained all required approvals for the water project or
projects needed to meet the general plan criteria.
Sewage treatment capacity may also be a constraint. If flows
remain lower than pre-drought levels due to permanent
conservation measures, and the Margarita area is the first to
annex, treatment capacity probably will be sufficient. If flows
return to pre-drought levels, or other areas are annexed first,
additional treatment capacity will be needed. The companion
agenda report on annexation of the airport area provides
additional information on sewage capacity.
2 . Initial phase before Nacimiento water
RRM has asked about an early first phase minor annexation if the
City commits to Nacimiento water. Development should wait until
adequate water is actually available, as called for by the
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general plan, except for a two-acre piece which clearly could
qualify to earn retrofit credits as a minor annexation.
The owners are hoping that part of the planning area could be
developed before Nacimiento water is actually available, if
completion of the Nacimiento project was imminent, and if the
City's water supplies were not strained by drought or other
causes at the time.
While this idea has some merit, it is clearly not consistent with
the Land Use Element or the Water & Wastewater Management
Element. One of the last amendments to the water element
clarified that, except for projects allowed by retrofitting, the
water has to be available, not anticipated. Much of the
community's difficulty during the recent drought stemmed from
continuing development based on anticipated rather than available
water. Under current polices and rules, a part of a major
expansion area cannot be built with water credits earned through
retrofitting, unlike minor annexations (such as Stoneridge II) or
areas that have been in the city (such as Edna-Islay) .
If the Council wants to change this policy, staff should be given
direction now so it can be presented along with the updates of
the Land Use Element and the water element.
It is possible that Salinas expansion plus reclaimed water would
allow development of the Margarita area to start before
availability of Nacimiento water, though this does not appear
likely or prudent. This approach would work only if Council
determined that obtaining the added supply to offset siltation
could be deferred past the start of Margarita area development.
Salinas addition: 1, 650 AF
Reclaimed water 500 AF (offset existing irrigation)
2 , 150 AF
Additional water for buildout of 1992
city limits, with effective conservation (10%) : 1, 300 AF
Additional water for buildout of Margarita area,
with reclaimed water usage: 271 AF
1, 571 AF
Additional yield to compensate for siltation: 800 AF
2 , 371 AF
The supply increment of 2, 150 AF would be greater than the demand
increment of 1, 571 AF. However, with siltation loss, the supply
increment of 2 , 150 AF would be less than the requirement of 2 , 371
AF.
There is one unique part of the Margarita area that could develop
sooner: about two acres at the southwest corner of the Broad-
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Rockview intersection. This area is shown on the adopted and
draft Land Use Element maps as "medium-density residential, " not
the "interim open space" designation used for major residential
expansion areas. Through the guidance package and the Land Use
Element update, this site was included in the Margarita planning
area with the addition of the Garcia ranch property. It is
separated from other potential development in the planning area
by over one-quarter mile of open space, and could meet the
criteria for a minor annexation.
In fact, City staff and RRM have prepared an information packet
concerning this site for the owners and the City Housing
Authority, outlining development potential and an annexation
schedule. When the City becomes entitled to Community
Development Block Grant funds, this would be a likely site to
acquire for assisted housing. Private development here could
proceed with water credit earned through retrofitting. Public
development would be exempt from needing an allocation, under a
previous determination by the Council.
3. Development agreement
The owners are interested in an agreement with the City that
would make the development schedule more definite. In order to
evaluate a potential agreement, the City would need at least an
outline of its basic terms.
A development agreement is a specific type of contract between a
local government and a private party, enabled by California law.
It gives developers more certainty in planning investments by
locking in development standards and approval procedures, or
certain exceptions, for a specified time following original
project approval. In exchange, the local government can count on
such benefits as desired development, land dedications, payment
of fees, or construction of public facilities by the developer
sooner than they might otherwise occur.
Development agreements typically are used with large, complex,
phased projects, often involving specific plans and annexations.
All the usual procedures for hearings and environmental review
must be followed, and the decision to approve a development
agreement is subject to referendum. The City has adopted rules
for the use of development agreements (Municipal Code Chapter
17 .94) , but has not entered into one.
City policy and the realities of water-project development do not
support an agreement requiring the City to obtain and provide
supplemental water at a certain time following the owners'
funding completion of the EIR or the specific plan, or requiring
the City to allow development regardless of water availability.
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ALTERNATIVES
The Council may give direction different from that recommended by
staff. Any change to an adopted policy or regulation would
require proper environmental review, public notice, and hearing.
The Council may continue action.
RECOMMENDATION
1. Confirm the City's commitment to complete the specific plan
for the area, annex it, and provide services in a timely
way, all as proposed by the general plan.
2 . Confirm the general plan requirement that the City have
sufficient water supply for existing and potential
development within the City, plus the annexed area, before
building in any part of the specific plan area (except the
minor piece on Rockview Place) .
3 . Suggest the owners submit a draft or outline development
agreement for further discussion and consideration, as
preparation of the specific plan proceeds.
ATTACHED
Vicinity map
Margarita Area Water Requirements table
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MEETING AGENDA
DATE 2-,Z3 -93ITEM #
MEMORANDUM
February 22, 1993
TO: John Dunn, City Administrative Officer
VIA: John Moss, Acting Utilities Director
FROM: Gary Henderson, Water Division Manager GWu
SUBJECT: Historic Water and Wastewater Information
Councilmember Dave Romero requested additional information concerning water and wastewater
use prior to the meeting about the Margarita and Airport Area annexations. The attached
information was compiled per the request and is transmitted to you for distribution to the
Council. Overheads of the attached charts will be available for the meeting if Council would
like this information presented. If you have any questions, please call me at extension 237.
c: Glen Matteson
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