Loading...
HomeMy WebLinkAbout10-07-2014 PH3 LUCE UpdateCity of San Luis Obispo, Council Agenda Report, Meeting Date, Item Number FROM: Derek Johnson, Community Development Director Prepared by: Gary Kaiser, Contract Planner SUBJECT: REVIEW PLANNING COMMISSION RECOMMENDATIONS REGARDING UPDATES TO CHAPTERS 1-6 AND 9-12 OF THE DRAFT LAND USE ELEMENT AND CHAPTERS 1-10 AND 12-16 OF THE DRAFT CIRCULATION ELEMENT, AND CONSIDER THE FISCAL IMPACT REPORT FOR THE LUCE UPDATE. RECOMMENDATION 1. Review and provide direction on updated policies and programs of Chapter 1-6 and 9-12 of the Land Use Element and Chapters 1-10 and 12-16 of the Circulation Element, and 2. Review and consider the fiscal balance of the proposed land uses as described in the LUCE Fiscal Impact Report. REPORT-IN-BRIEF The City Council is being presented with Planning Commission recommendations for updates to the remaining chapters of the draft Land Use and Circulation Elements (LUCE). The Council previously reviewed and provided input on the airport-related chapters (Chapter 7 of the Land Use Element and Chapter 11 of the Circulation Element) and the Special Focus Areas of the Land Use Element (Chapter 8) on September 16th and 30th. Any comments and direction from Council regarding changes to the Land Use and Circulation Elements will be brought back for Council consideration and adoption at the October 21, 2014 meeting. DISCUSSION Background The LUCE update project refines existing policies of the Land Use and Circulation Elements and adds new policies to respond to legislative requirements and community vision. The update also includes policy direction and performance standards to guide development in proposed areas of “physical change” so that land use changes balance population growth with infrastructure availability and community objectives. The “physical changes” include identifying locations and establishing policy guidance for the formation of specific plans and special planning areas which will outline future growth areas of the City. In this third of four meetings for consideration of the LUCE update, the Council will review and provide edits and direction on policy guidance and programs in the remaining chapters of the draft Land Use and Circulation Elements. Previous Council meetings have covered review and direction on airport-related chapters of both elements and on policy direction for the special focus areas identified in Chapter 8 of the Land Use element. The Planning Commission has 10-7-14 PH3 PH3 - 1 LUCE – LUE 1-6 and 9-12 and CE 1-10 and 12-16 and Fiscal Page 2 completed its review of the draft elements after careful consideration of community input and comments provided through the EIR process, and recommends the Council approve the draft elements with the changes endorsed at the Commission’s meetings on September 10th and 11th and September 17th and 18th. Attachment 1 includes the policy and program changes recommended by the Planning Commission over the course of four meetings held to review the draft elements. The Commission’s changes incorporate policy revisions specified by the EIR itself, revisions in response to public input during the EIR review process and public hearings (Attachment 3), and changes from the Commission itself. In order to distinguish those changes endorsed by the Commission, Attachment 1 provides the policy and program language as it appears in the published legislative draft format with the Commission’s recommended changes highlighted in yellow. Draft minutes from September 10th, 11th, 17th and 18th are provided in Attachment 2. Please note that the Table of Contents, figures and tables will be updated and all references will be updated in the final documents. The Council should review and provide direction to staff regarding changes to the legislative draft documents. Those changes will be brought back for final action on October 21, 2014. 1. Land Use Element A high level description of the proposed updates to each chapter of the Land Use Element as evaluated in the FEIR is described below. These descriptions are followed by a brief summary of any Planning Commission edits that occurred in response to community input and the hearing process. Attachment 1 provides the actual language edits endorsed by the Planning Commission, with changes shown highlighted to distinguish them within the legislative draft of the document. Introduction, Goals, and Chapter 1: Growth Management Policies This section contains the background to the LUCE update, the goals and relocated land use designations and growth management policies. The consultant team recommended removal of the background section describing the 1994 LUE update for purposes of clarity and brevity. The Planning Commission supported removal of the background to the previous update and also supported addition of new policy language to clarify under what conditions provision of recycled water outside the city boundaries might be appropriate. Chapter 2: Conservation and Development of Residential Neighborhoods With the LUCE focus on infill development, several policies were added or updated in this chapter to help describe livable neighborhoods and to provide direction for development to be compatible with the existing neighborhood fabric. The Planning Commission supported edits to policy describing compatible development to clarify intent. Chapter 3: Commercial and Industrial Development The largest amount of change in this chapter resulted from relocating the land use designation descriptions and associated purpose and intensity standards to the table at the front of the element. However there are edits to existing policies, one new policy addition and four new programs proposed. PH3 - 2 LUCE – LUE 1-6 and 9-12 and CE 1-10 and 12-16 and Fiscal Page 3 Chapter 4: Downtown Updates to this chapter focused on the mix of uses in the Downtown, the need to update the Downtown Concept Plan, and the desire to ensure Downtown is safe and vibrant at all times of day and night. The Planning Commission added the concept of “parklets” to the new policy regarding downtown green space. Chapter 5: Public and Cultural Facilities Updates to this chapter were minor. Chapter 6: Resource Protection Updates to this chapter included addition of a new program to evaluate options for addressing flood concerns; as well as new policies to address drainage requirements. Specific flood control measures listed in Policy 6.5.1 are proposed for removal in favor of policy direction that is implemented through ordinance, specific plans, and other design standards that can be responsive to changes in state law and best practices. Chapter 7: Airport This chapter was reviewed by Council on September 30, 2014. Chapter 8: Special Focus Areas This chapter was reviewed by Council on September 16th and 30th, 2014. Final actions were taken by the City Council on Bishop Knolls and General Hospital focus areas. Chapter 9: Sustainability This is a new chapter of the element and includes policy and program support for efforts to implement the Climate Action Plan; and to seek ways to promote more energy efficiency in buildings and the city’s built form. The Planning Commission applauded City Council’s previous addition of a new policy and program to address the urban forest. In addition, the Commission edited sustainable design policies to encourage development of solar-ready and grey water-ready homes, and encourage provision of solar canopies, such as the solar panel arrays on the structures covering school parking lots. The Commission supported addition of examples of energy efficient projects and vehicle charging stations to the draft incentive program and building code update program respectively. Chapter 10: Healthy Community This is a new chapter and includes Healthy Eating Active Living (HEAL) policies. It includes policy support for local food systems and walkability. Chapter 11: Review and Amendment Only minor grammatical edits were made in this chapter. Chapter 12: Implementation Information in this chapter was updated to reflect implementation that has occurred since 1994 such as adoption of Historic Preservation Ordinance and Historic Context Statement. In addition, PH3 - 3 LUCE – LUE 1-6 and 9-12 and CE 1-10 and 12-16 and Fiscal Page 4 language changes to the Environmental Review section were made to clarify the community’s desire to fully understand potential environmental impacts associated with projects. 2. Circulation Element A high level description of the proposed updates to each chapter of the Circulation Element as evaluated in the FEIR is described below. These descriptions are followed by a brief summary of any Planning Commission edits that occurred in response to community input and the hearing process. Attachment 1 provides the actual language edits endorsed by the Planning Commission, with changes shown highlighted to distinguish them within the legislative draft of the document. Chapter 1: Introduction This section contains the purpose and objectives of the Circulation Element. In addition, this chapter contains the updated modal split objectives and a new policy to support multi-modal circulation. The Commission supported edits to include additional types of alternative fueling stations and addition of creative transportation demand management language. Chapter 2: Traffic Reduction Changes in this chapter include revisions to policies that refer to trip reduction requirements. In accordance with SB 437 (Lewis), employee trip reduction mandates are not allowed unless required by the Federal government (§ 40717.9 Health and Safety Regulations) and updated policy and program language now reflects this transition to voluntary commuter benefit programs. The Commission supported minor edits to a policy in this chapter to reflect existing efforts by Cal Poly to incentivize use of alternative forms of transportation. Chapter 3: Transit Service Updates in this chapter reflect that the City has adopted implementation through a Short Range Transit Plan that it updates every five years. The edits in this chapter are fairly minor but reinforce the intent to make transit a suitable mode choice for residents. The Commission supported updated language to describe seniors and persons with disabilities as well as minor edits to several other policies. Chapter 4: Bicycle Transportation Updates in this chapter focus on the importance of implementing the Bicycle Transportation Plan, as well as coordinating bike infrastructure planning with regional efforts and the local campus master plans. The Commission supported a minor edit to the bicycle licensing program. Chapter 5: Walking This chapter has several policy updates to reflect the desire for pedestrian connectivity throughout the community. A new program has been added to call for development of a Downtown Pedestrian Plan. While this effort was initiated with the LUCE update, the public engagement and discussions required to complete a public review draft of the Pedestrian Plan have not yet occurred and are anticipated to follow the LUCE update. PH3 - 4 LUCE – LUE 1-6 and 9-12 and CE 1-10 and 12-16 and Fiscal Page 5 Chapter 6: Multi-Modal Circulation This is a new chapter which responds to Assembly Bill 1358 (2008), The Complete Streets Act, which requires all cities updating a Circulation Element to plan for development of multi-modal transportation networks. Policies in this chapter establish the Complete Streets and Multimodal Level of Service (LOS) Objectives, Standards, and Significance Criteria. Policies for Modal priorities for Level of Service are also established along with thresholds of significance and mitigation policies for review under the California Environmental Quality Act (CEQA). Chapter 7: Traffic Management Chapter 7 establishes policies that would manage expansion of roadways to only accommodate increased vehicular traffic associated with development under the Land Use Element and regional transportation plans. Policies also would increase support for non-automobile travel by allocating transportation funding across various modes of transportation and to reduce vehicle speeds in residential neighborhoods where possible. A key policy in this chapter directs the city to adopt funding guidelines to align with modal split objectives. Staff recommends additions to 7.0.2 and 9.1.6 regarding roundabouts to be consistent with state and federal roundabout policy and guidance and lessen class I transportation impacts given the proven superior safety and operational benefits. This direction may be found on page 3-22 of the FEIR. Additional edits were made by the Planning Commission regarding access management policies, and connections to non-automotive modes. Chapter 8: Neighborhood Traffic Management Chapter 8 contains policies to protect residential neighborhoods from deteriorating traffic conditions by minimizing cut through traffic and incorporating traffic calming features. The Commission recommended edits to the proposed policy regarding neighborhood traffic management guidelines to include outreach and guidance on voting. In addition, the Commission recommended edits to clarify priority and criteria to be considered when evaluating quality of life issues associated with neighborhood streets. Chapter 9: Street Network Changes Chapter 9 provides policy modification to require public participation in the planning and design of major changes to the street network and modified implementation policy to sequence street projects so development does not precede needed infrastructure improvements. Chapter 10: Truck Transportation Truck transportation policy modifications include policies to require use of established truck routes and include a new policy that the City shall adopt an ordinance regulating the movement of heavy vehicles. Chapter 11: Air Transportation This chapter was reviewed by the Council on September 30, 2014. Chapter 12: Rail Transportation Modifications to Chapter 12 includes policies encouraging increased availability of passenger rail service and to enhance City transit service to transit station and to work with the train station PH3 - 5 LUCE – LUE 1-6 and 9-12 and CE 1-10 and 12-16 and Fiscal Page 6 management to upgrade the facility and visitor services. The Commission added two new policies to this chapter. Chapter 13: Parking Management Chapter 13 includes updated policies which clarify and update language related to short term parking, establishment of park and ride lots, curb parking evaluation, and the approval and construction of public parking structures. The Commission added additional language to the parking management program to include consideration of unbundled parking and other emerging practices. The Commission also noted that parking evaluation should include areas within the larger planning area. Chapter 14: Neighborhood and Parking Management This Chapter includes additional policies to protect residential neighborhoods from parking demand generated by adjacent high-intensity uses and for the City to update the review criteria and clarify the process for establishing neighborhood parking districts. Chapter 15: Scenic Roadways This Chapter addresses policy direction for development along scenic roadways including signage, lighting, and other public equipment and facilities. The Commission supported a minor edit to clarify that the Aesthetic Study of US 101 was being conducted by Caltrans. The Commission also noted that designation of scenic highways should include areas within the larger planning area. Chapter 16: Circulation Element Implementation, Program Funding and Management Chapter 16 policies provide additional emphasis on how the City’s financial decisions should support and align with the circulation policies and programs, and encourages the City to continue to actively participate in regional transportation issues. 3. Interaction with Regional Actions SLOCOG Funding from a Caltrans Partnership Planning Grant allowed SLOCOG to work with Caltrans, APCD, and RTA to develop a US 101 Corridor Mobility Master Plan. The draft plan discusses future needs for US 101 in the County to the year 2035 and addresses a section of US 101 through San Luis Obispo between Los Osos Valley Road and the Grand Avenue ramp. The draft plan identifies specific localized needs and suggests longer term improvement packages that are to be considered for inclusion in future Regional Transportation Plan and Federal Transportation Improvement Program updates. The table of recommended improvement packages includes the Prado Road Interchange, the Santa Rosa Street Interchange, and the Broad Street Ramps. These are listed as medium to long term enhancements (10-20 years). 4. Financial Report The fiscal impact analysis of the LUCE update (Attachment 3) provides information about the fiscal balance of the land uses and the cost of the infrastructure to support those uses. This information is intended to inform the Council regarding the mix of uses being proposed through PH3 - 6 LUCE – LUE 1-6 and 9-12 and CE 1-10 and 12-16 and Fiscal Page 7 the update and will set the stage for future efforts to define the fee program and facilities financing approaches that will support implementation. Development supported by the LUCE update will generate demands for local government services such as police, fire, utilities, community development, as well as increased demands on facilities such as parks and government buildings. This same development will also generate revenue to help support these demands through taxes and fees. The analysis of how the cost of the demand balances with the off-setting revenue associated with the types of uses supported by the LUCE update is addressed in the fiscal impact report. In general, residential development generates less income than it costs the community to serve; and non-residential development (especially those uses generating transient occupancy tax and retail sales tax) generates more income than it costs the community to serve. “This effect frequently is exacerbated over time. Thus, community plans should strive to develop a balance of land use that includes sufficient net revenue generators to offset financial drains and/or to avoid diminishing service levels.”1 The findings from the report indicate the new development associated with the LUCE would generate a net neutral to slightly net positive fiscal impact. This understanding of the relative balance of demand for public services and cost to respond is important to ensure the City of San Luis Obispo is able to meet the expectations of its citizens, both current and future. It is an important component, though not the only factor, in creating a plan that meets the desired vision of the community. The information is provided to the City Council as context for the LUCE update but no further action or recommendation is required. This report is intended to inform the Council regarding the fiscal impacts of land uses supported by the LUCE and will provide valuable information for the public facility fee update that will follow LUCE adoption. 5. Next Steps The October 21st City Council hearing is intended to be the completion of the LUCE update process by finalizing direction and taking action on the draft elements, minor edits to other elements to maintain internal consistency, associated Zoning Ordinance changes, and General Plan diagram and Zoning Map changes. The topics for Council consideration are shown below: October 21st • LUCE adoption • Potential Airport Overrule determination • Airport Overlay Zone (dependent on item above) • Zoning Regulations addition for S-F overlay zone • Fiscal/Public Facilities Financing Plan • EIR Addendum, as required • Land Use Element diagram and Zoning Map 1 Multari, Coleman, Hampian, and Statler. Guide to Local Government Finance in California, Solano Press Books, 2012. PH3 - 7 LUCE – LUE 1-6 and 9-12 and CE 1-10 and 12-16 and Fiscal Page 8 CONCURRENCES The LUCE and DEIR were reviewed by all City departments and were distributed to various California agencies for comment and made available for public review and comment. FISCAL IMPACT The LUCE Update was made possible by a Sustainable Communities grant in the amount of $880,000 provided by the State of California Strategic Growth Council. Funding for the grant is from the Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Act of 2006 (Proposition 84). General Fund in the amount of $467,500 was also used on the LUCE update to fund the environmental review and support Public Works and Fire Department staffing impacts. ALTERNATIVES 1. Continue consideration of the proposed public hearing schedule and direct staff to provide additional information to the City Council at a future meeting. ATTACHMENTS 1. Recommended policy changes resulting from Planning Commission review and EIR 2. Draft Planning Commission minutes from 9-10-14, 9-11-14, 9-17-14 and 9-18-14 3. Policy Matrix provided to Planning Commission with comments received through EIR 4. Fiscal Impact Report The Draft LUCE and Draft EIR are available for review and CDs area available at the Community Development Department, 919 Palm Street. These documents can also be downloaded here: http://www.slo2035.com AVAILABLE FOR REVIEW IN THE COUNCIL OFFICE Full Copy of Draft EIR and appendices (5 Volumes) T:\Council Agenda Reports\2014\2014-10-07\LUCE Update (Johnson-Murry)\CAR LUCE Update (LUE 1-6 _ 9-12 and CE 1-10_12-16 and Fiscal).docx PH3 - 8 1 Planning Commission Recommendations Policy revisions and additions recommended by the Planning Commission are shown highlighted to distinguish the Commission’s edits from the existing legislative draft. Land Use Element___________________________________________ Introduction Page 10-11 Background to the 1994 Land Use Element The following represents a historical perspective of the update to the Land Use Element conducted in 1994 and is taken from that Element: “The City started work on updating this element with a series of public workshops in 1988. Also, the City took a public opinion survey and established committees to give advice on the element. The introduction to the 1977 Land Use Element contained a philosophical discussion of existing conditions and issues facing the City. The discussion is still valid today. Its premise is that the City and County, while still relatively rural and apparently capable of providing room for new residents, face some known and several undefined finite resources which may constrain growth. Furthermore, the introduction said, public attitudes towards the desirability of growth had changed since the City’s first General Plan; experience with growth had caused citizens and public officials to question whether growth, even well planned, produces benefits worth the social, economic and environmental costs and consequences. Despite such consistent and strong expression of community values, there has been continued, incremental degradation of the natural environment expressly valued by residents of San Luis Obispo. On the environmental side, the element stated that key resources known to have finite limits were water supply and air quality. All the basic resources -- land, water and air -- can accommodate some additional growth without severe impacts, but eventually and inevitably growth must stabilize and stop, or else exceed resource limitations with destructive social, economic and environmental ramifications. The purpose of the 1977 element, the Introduction said, was to apply planning methodologies to manage the rate and extent of growth so that irreversible environmental problems would not get out of hand before they were recognized. Concerns about environmental quality continue today, and are the basis for much of the General Plan. Votes of residents and the public opinion survey of residents done as part of the General Plan update have strongly reaffirmed the commitment of residents to preserve and enhance the environmental quality of our community. In the years since 1977 additional issues have become better defined. One, for example, is the maintenance of the remaining prime farmland in and around the City. The 1977 Element cited this as one of the primary issues facing planners, but failed to propose a concrete solution. As a result, irreplaceable agricultural land has been lost. The General Plan now proposes solutions to the continued irretrievable loss of this world-class natural asset. Another issue that was less well understood in 1977 is the Attachment 1 PH3 - 9 2 preservation of important wildlife and native plant habitats. The General Plan now proposes preservation of such habitats, including planning based on the identification, mapping and monitoring of the community's existing natural assets. This element is an update of the 1977 element; it represents fine tuning rather than a new beginning.” Page 21 – midway on page Land Use Designations within LUCE Planning Sub-area Within the LUCE Planning Sub-area, tThe General Plan Land Use Diagram includes residential, commercial, industrial, and other land use designations that depict the types of land uses that will be allowed within the LUCE Planning Sub-area. Table 1 identifies describes all of the designations along with their corresponding development intensity standards, as follows. Tables 1 and 2 provide same information: Page 28 – top of page Land Use Designations Outside the LUCE Planning Sub-area Most of the land within the City’s Greenbelt (see Figure 5 in the Conservation and Open Space Element), but outside the City limits (unincorporated lands), is designated by the County for Agriculture or Open Space. The City supports these land use designations and discourages any further subdivision of existing parcels unless such subdivision is expressly part of strategy to permanently preserve agriculture and/or open space. However, if any new lots are permitted apart from such a strategy, they should be a minimum of 20 acres in size or greater. Chapter 1 – Growth Management Policies NEW Policy: Recycled Water Provision of recycled water outside of City limits may only be considered in compliance with Water and Wastewater Policy A 7.3.4 and the following findings: A. Non-potable/recycled water is necessary to support continued agricultural operations. B. Provision of non-potable/recycled water will not be used to increase development of property being served. C. Non-potable/recycled water will not be further treated to make it potable. D. Prior to provision of non-potable/recycled water, the property to be served will record a conservation, open space, Williamson Act, or other easement instrument to maintain the area being served in agriculture and open space while recycled water is being provided. Chapter 2 – Conservation and Development of Residential Neighborhoods LUE 2.2.9 Compatible Development The City shall require that new Hhousing built within an existing neighborhood should be inbe sited and designed to be compatible with the scale and incharacter with that of theneighborhood. All multifamily development and large group-living facilities shouldshall be compatible with any nearby, lower density development. Compatibility for all development shall be evaluated using the following criteria:...H. Housing Diversity. A mix of housing types, and a range of density within a neighborhood an area is generally desirable (see also Policy 2.1.6). Attachment 1 PH3 - 10 3 2.3.1 Density Categories The following residential density categories are established in (Table 41) within LUCE Planning Sub-area, and Table 2 for areas outside the LUCE Planning Sub-area but within the City’s Planning Area. For planning studies conducted, Table 5 provides a typical population density for each residential land use designation. Residential density is expressed as the number of dwellings per acre of net site area within the designation. In determining net area, the following types of areas are excluded: sensitive features such as creeks, habitats of rare or endangered plants and animals, and significant trees; land dedicated in fee to the public for streets or neighborhood parks. For the categories other than Rural Agriculture/Open Space, Residential Rural, Residential Suburban, and Low-Density Residential, densities are expressed in terms of a standard two- bedroom dwelling. This approach is intended to achieve population densities approximately like those indicated. More or fewer dwellings having different bedroom counts may be built depending on the number of people expected to live in a project, as indicated by the number of bedrooms. The population-density standards assumptions also apply to group residential facilities. (For allowed residential development in Office, commercial, and manufacturing districts non-residential designations, see the sections concerning those districts Table 1.) Chapter 3 – Commercial and Industrial Development Policies No changes from Draft LUE project description previously endorsed by Council Chapter 4 - Downtown New Policy Downtown Green Space The City shall increase Downtown green space and public parks including pocket parks and parklets, as the number of people living Downtown increases. Chapter 5 – Public and Cultural Facilities No changes from Draft LUE project description previously endorsed by Council Chapter 6 – Resource Protection No changes from Draft LUE project description previously endorsed by Council Chapter 7 – Airport Area 7.3.6 Internal Open Space Attachment 1 PH3 - 11 4 The City shall ensure The areas designated for urban uses in the Airport Area Specific Plan, but not necessarily each parcel, should include open areas as site amenities and to protect resources, consistent with the Conservation and Open Space Element. In addition, the City shall ensure wildlife corridors across the Airport Area shall be identified and preserved. New Policy 7.X Airspace Protection The City shall use the Airport Master Plan Update and FAA airport design standards and Part 77 surfaces to keep the airspace surrounding the airport free of objects where required by the FAA or shall limit the height of objects as required by the FAA. The City shall also ensure obstruction clearance is provided for all en route and terminal (airport) instrument procedures as per the United States Standard for Terminal Instrument Procedures (TERPS) to avert modifications to any planned or published instrument approach or instrument departure procedures at SBP. Chapter 8 – Special Focus Areas (See associated Zoning Changes – SF Overlay below) Page 97 – last paragraph The special planning areas Special Focus Areas are those that present opportunities to develop customized land use approaches or special design implementation to enhance their appearance and achieve their respective development potential: Foothill Blvd., Upper Monterey, Mid- Higuera, Caltrans site, General Hospital site, Broad Street Area, Madonna Inn area, Sunset Drive-in, Pacific Beach, Calle Joaquin auto sales area, LOVR Creek area, and Broad Street at Tank Farm area. Pages 105, 106, and 107 Planning Commission recommended a footnote for the performance standards of all three Specific Plans: *There can be a reduction in the minimum requirement based on specific physical and/or environmental constraints. Page 105 of Draft LUE 8.3.2.4 SP-2 San Luis Ranch (Dalidio) Specific Plan Area Performance Standards: This specific plan shall meet the following performance standards. Type Designations Allowed % of Site Minimum* Maximum Residential LDR MDR MHDR HDR 350 units 500 units Commercial NC CC 50,000 SF 200,000 SF Office/High tech) O 50,000 SF 150,000 SF Attachment 1 PH3 - 12 5 Hotel/Visitor- serving 200 rooms Parks PARK 5.8 ac Open Space / Agriculture OS AG Minimum 50%1 65.5 ac No maximum Public n/a Infrastructure n/a *There can be a reduction in the minimum requirement based on specific physical and/or environmental constraints. 1 The City Council may consider allowing a portion of required open space to be met through off -site dedication provided: a) A substantial multiplier for the amount of open space is provided for the off-site property exchanged to meet the on-site requirement; and b) Off-site land is of similar agricultural and visual value to the community; and c) Off-site land is protected through an easement, dedication or fee title in perpetuity for agriculture/open space. Foothill/Santa Rosa (page 108 of the LUE): As part of this project, the City will evaluate adjustments to parking requirements to account for predominant pedestrian and bike access. Building height adjustments in this area can also be considered with mixed use development. Redevelopment plans shall include consideration of improving the existing complex intersections of Foothill/Chorro/Broad, the desirability of modifying Boysen at and through the property on the northeast corner of the area, and enhancement of pedestrian, bicycle and transit connections across Foothill and Santa Rosa/Highway 1 and to the campus. Among other possible incentives, building height adjustments on the North side of Foothill may be considered with mixed use development. LOVR Creekside (page 111 of the LUE): This area is heavily constrained by flood potential along the western boundary as well as limited circulation access to the site given its proximity to the proposed LOVR / Highway 101 interchange and its limited frontage on LOVR. Flooding and access issues must be resolved prior to developing Medium High Density Residential (in areas adjacent to existing residential uses). Agricultural Designations must be maintained along the west side of site. As part of future development, compatibility with adjacent residential areas to the east will be required. Permanent protection of the adjacent San Luis Obispo Creek will need to be addressed as part of proposed development. The south side of the site will also need to accommodate relocation of LOVR right-of-way and changes related to the planned Highway 101 interchange. As part of development, impacts of a new roadway connection in some form from Los Osos Valley Road to Higuera shall be analyzed. Broad Street at Tank Farm Road (page 111 of the LUE): Located at the northwest corner of Broad Street and Tank Farm Road, this approximate Attachment 1 PH3 - 13 6 10 acre site will be used as a mixed use site, providing for a mix of uses as described under the Community Commercial and Office designations and residential limited to upper floors. The site will provide a strong commercial presence at the intersection. Areas along the creek on the western edge of the site will be appropriately buffered to provide creek protections. Attention to connectivity, safety and comfort of bicycle and pedestrian circulation will be especially important in the development of this corner. CalFire/Cal Poly property on Highway 1 (page 111 of the LUE): The Cal Poly Master Plan currently designates this area for Faculty and Staff housing. The City shall collaborate with Cal Poly in updating the Master Plan for development of campus property. Master Plan direction for this property shall address sensitive visual and habitat resources, circulation issues, impacts to City services, transition and potential impacts to surrounding neighborhoods. SBSCP (notes to list of allowed uses) Medical services To approve a Medical Service use in the C-S zone, the Hearing Officer must make the following findings: a. The proposed medical service is compatible with surrounding land uses. b. The proposed medical service will not significantly increase traffic or create parking impacts in residential neighborhoods. c. The proposed medical service is consistent with the Airport Land Use Plan. dc. The project will not preclude service commercial uses in areas especially suited for these uses when compared with medical services. ed. The project site can accommodate the parking requirements of the proposed medical service and will not result in other lease spaces being under-utilized because of a lack of available parking. Chapter 9 – Sustainability 9.3.7 Sustainable Design D. Sustainable Design Utilize plumbing fixtures that conserve or reuse water such as low flow faucets or grey water systems, and encourage new homes to be constructed to be grey water ready. H. The City shall encourage the building of solar-ready homes. I. The City shall encourage the building of solar canopies. New Program Incentive Program The City shall consider the feasibility of providing incentives for new and renovated projects that incorporate sustainable design features such as constructing new buildings that are solar ready, or off-setting significant operational energy use through use of solar water heating, photovoltaic systems, geothermal or wind energy systems. New Program Building Code Update Building Code Update: The City shall regularly review and update its building code and ordinances to identify revisions to promote energy efficient building design and construction Attachment 1 PH3 - 14 7 practices, for example by including requirements for electric vehicle charging stations for new residential developments. New Policy: Renew the Urban Forest The City shall Ddevelop a long term tree planting program to beautify the city, mitigate increased residential density, address die-off, and combat air pollution and global warming. New Program: Urban Forest The City shall Uupdate master tree plan and develop recommendations to renew and maintain the urban forest and plant more trees. Chapter 10 – Healthy Community No changes from Draft LUE project description previously endorsed by Council Chapter 11 – Review and Amendment No changes from Draft LUE project description previously endorsed by Council Chapter 12 – Implementation No changes from Draft LUE project description previously endorsed by Council Zoning – Chapter 17.53: Special Focus Area (S-F) Overlay Zone 17.53.010 Purpose and application. The SF Overlay Zone is intended to translate the provisions of General Plan Land Use Element Chapter 8 (Special Focus Areas) into regulations for the subsequent development of land. It will be applied to areas identified in Chapter 8 as Special Planning Areas, where the General Plan Land Use Element calls for special design concepts. 17.53.020 Allowed uses and development standards. All development within the Special Planning Areas shall adhere to the requirements of the underlying zone district and the provisions for each of the respective Special Planning Areas, as described in Chapter 8 of the Land Use Element. In addition, development objectives within each of the Special Planning Areas shall be interpreted by the Community Development Director or applicable advisory body or commission in order to achieve the development objectives of the Special Focus Areas. Where provisions of the underlying zone and Land Use Element Chapter 8 conflict, LUE policies shall take precedence. Planning Commission review and approval is required for the following Special Focus Areas: Foothill Boulevard/Santa Rosa, Cal Trans Site, Madonna Inn Area, Sunset Drive-in Theater/Prado Road Area, LOVR Creekside Area. 17.53.030 Subsequent Amendments. Attachment 1 PH3 - 15 8 Minor adjustments to internal zone district boundaries within each of the Special Planning Areas may be proposed or required during development review based on physical site conditions, environmental impacts and other factors, as deemed appropriate in order to best implement policies and programs contained in the General Plan. Updates to Noise and Safety Elements for internal consistency with Chapter 7. See New Airport Overlay Zone Chapter 17.57 Circulation Element___________________________________________ Chapter 1 – Introduction 1.5.1 Transportation Goals 8. Reduce the need for travel by private vehicle through land use strategies, creative transportation demand management, telecommuting and compact work weeks. 1.9 Support Environmentally Sound Technological Advancement San Luis Obispo should: 1. A. The City will continue to support the use and development of compressed natural gas and biodiesel fueling stations, EV recharging stations, and other alternative fuel stations in the San Luis Obispo area. Chapter 2 – Traffic Reduction 2.1.4 The City shall continue to work with Cal Poly, Cuesta College and other educational institutions to provide incentives to all students, faculty, and staff to use alternative forms of transportation. Chapter 3 – Transit Service CE 3.0.7 Transit Service Access The City shall encourage transit accessibility New development should be designed to facilitate access to transit service. Attachment 1 PH3 - 16 9 3.03 Paratransit The City shall continue to support paratransit service for the elderly and disabled persons provided seniors and persons with disabilities by public and private transportation providers. 3.0.4 Campus Service. The City should shall continue to work with Cal Poly to maintain and expand the "no free fare subsidy program" for campus service and Cal Poly should continue to provide financial support affiliates. The City should encourage shall work with Cuesta College and other agencies schools to establish similar programs. 3.1.4 The City will cooperate shall coordinate with efforts of the San Luis Obispo Council of Governments Regional Transit Authority (SLORTA) to evaluate the cost effectiveness of centralizing transit benefits and drawbacks of coordinated and consolidated service. 3.1.7 New Development When evaluating transportation impacts, the City shall use a Multimodal Level of Service analysis. Chapter 4 – Bicycle Transportation 4.1.1 Incentives (Note: Task Force recommends that this program be moved to the Traffic Reduction section.) The City shall work with Cal Poly and, Cuesta College, shall be encouraged and other educational institutions to provide incentives to and educate all students, faculty and staff to use alternative forms of transportation. The City shall work with Cal Poly and, Cuesta College, shall be encouraged and other educational institutions to provide incentives to and educate all students, faculty and staff to use bicycling as an alternative forms of transportation. (Note: Commission recommendation to retain modified policy here in addition to moving the policy as recommended by the Task Force). 4.1.9 Bicycle Licensing The City should consider expanding and maintaining its bicycle licensing program to address bicycle loss, theft, and safety problems. Chapter 5 – Walking 5.0.3 NEW DEVELOPMENT New development shall provide sidewalks and pedestrian paths Consistent with City policies, plans, programs, and standards. When evaluating transportation impact, the City shall use a Multimodal Level of Service analysis. Attachment 1 PH3 - 17 10 Chapter 6 – Multi-Modal Circulation 6.0.E Mitigation c. Transit: For transit-related impacts, developments shall be responsible for their fair share of any infrastructural improvements required. This may involve provision of street furniture at transit stops, transit shelters, and/or transit shelter amenities, pullouts for transit vehicles, transit signal prioritization, provision of additional transit vehicles, or exclusive transit lanes. 6.0.1 Complete Streets The City shall design and operate City streets to enable safe, comfortable, and convenient access and travel for users of all abilities including pedestrians, bicyclists, transit users, and motorists. Chapter 7 – Traffic Management 7.0.2 Street Network The City shall manage to the extent feasible the street network so that the standards presented in Table 6.1 are not exceeded. This will require new development to mitigate the traffic impacts it causes or the City to limit development that affects streets where congestion levels may be exceeded. The standards may be met by strengthening alternative modes over the single occupant motor vehicle. Where feasible, roundabouts shall be the City’s preferred intersection control alternative due to the vehicle speed reduction, safety, and operational benefits of roundabouts. 7.1.7 Traffic Access Management The City shall adopt an access management policy to control location, spacing, design and operation of driveways, median openings, crosswalks, interchanges and street connections to a particular roadway including navigation routes to direct traffic in a manner that preserves the safety and efficiency of the transportation system. Navigation routing and other smart access technologies should be considered as part of the update to the Access and Parking Management plan. Chapter 8 – Neighborhood Traffic Management 8.0.5 Neighborhood Traffic Management Guidelines The City shall update its Neighborhood Traffic Management Guidelines to address voting, funding, and implementation procedures and develop an outreach program on the availability of the program. Attachment 1 PH3 - 18 11 8.1.3 Quality of Life When requested by neighborhoods, The City shall analyze residential streets shall be analyzed for their livability with regards to multi-modal traffic noise, volumes, speed and potential excess right-of-way pavement. Traffic calming or other intervening measures. may be necessary to maintain the resident's quality of life. The City should give priority to existing streets that exceed thresholds. 8.1.1 City Vehicle Operation OperatorsThe City shall direct operators of City vehicles, excluding police patrols, should not to use Residential Collector or Residential Local streets as shortcut routes for non-emergency City business. Chapter 9 – Street Network Changes 9.1.6 Streetscapes and major roadways In the acquisition, design, construction or significant modification of major roadways (highways / regional routes and arterial streets), the City willshall promote the creation of “streetscapes” and linear scenic parkways or corridors that promote the City’scity’s visual quality and character, enhance adjacent uses, and integrate roadways with surrounding districts. To accomplish this, the City willshall: A. Establish streetscape design standards for major roadways; B. Establish that where feasible roundabouts shall be the City’s preferred intersection alternative due to improved aesthetics, reduction in impervious surface areas, and additional landscaping area: BC. Encourage the creation and maintenance median planters and widened parkway plantings; C.D. Retain mature trees in the public right-of-way; D.E. Emphasize the planting and maintaining of California Native tree species of sufficient height, spread, form and horticultural characteristics to create the desired streetscape canopy, shade, buffering from adjacent uses, and other desired streetscape characteristics, consistent with the Tree Ordinance or as recommended by the Tree Committee or as approved by the Architectural Review Commission. E.F Encourage the use of water-conserving landscaping, street furniture, decorative lighting and paving, arcaded walkways, public art, and other pedestrian-oriented features to enhance the streetscape appearance, comfort and safety. F.G Identify gateways into the City including improvements such as landscaped medians, wayfinding and welcoming signage, arches, lighting enhancements, pavement features, sidewalks, and different crosswalk paving types. F.H. Encourage and where possible, required undergrounding of overhead utility lines and structures. G.I. When possible, signs in the public right-of-way should be consolidated on a single, low- profile standard. Attachment 1 PH3 - 19 12 I.J In the Downtown, streetscape improvements shall be consistent with the Downtown Pedestrian Plan. Table 5. Transportation Capital Projects (Note: Table to be updated to reflect revised and new projects. Updated Table to be provided via Agenda Correspondence) Recommended Additions & Policy Language to be incorporated into Circulation Element: Madonna & Higuera Realignment. Development of the properties North and South of Madonna Rd. West of Higuera shall incorporate a detailed analysis for Madonna Road west of Higuera and the intersection of Higuera and Madonna and recommend improvements, if any. Chorro, Broad, & Boysen Realignments. Redevelopment of University Square shall incorporate a detailed circulation, safety & access management analysis for the intersections of Boysen & Santa Rosa (potential for grade separation crossing/restrictions), Foothill & Chorro, and Foothill & Broad as well as driveway access points along adjacent roadways. and recommend improvements, if any. Pismo & Higuera Realignment. Redevelopment of properties at the intersection of High & Pismo at Higuera shall incorporate a detailed analysis and recommend improvements, if any. Planned Bishop Street Connection. The City shall conduct a detailed subarea traffic analysis to determine if secondary measures can be made to allow for elimination of the Bishop Street Extension and protection of neighborhood traffic levels and recommend improvements, if any. Los Osos Valley Road Bypass . The City shall conduct a detailed subarea traffic analysis to determine final feasibility of the LOVR Bypass. Issues to be studied should include, but are not limited to impacts to: sensitive noise receptors, agriculture operations, open space, Creek, traffic and biological resources. Chapter 10 – Truck Transportation New policy requiring the adoption of an ordinance regulating the movement of heavy vehicles. Planning Commission change – Modification to Figure 2 (page 43) 1. Remove LOVR between US 101 and Higuera 2. Include Buckley Road Attachment 1 PH3 - 20 13 Chapter 11 – Air Transportation No changes from Draft LUE project description previously endorsed by Council Chapter 12 – Rail Transportation Coordination with Organizations Regarding Safety and Environmental Sensitivity 12.1.3 Idling Train Engines Interagency Cooperation. The City shall coordinate railroad facility infrastructure maintenance with the Union Pacific Railroad and the Public Utilities Commission. In addition, the City shall work with the Air Pollution Control District and others to eliminate discourage idling train engines in San Luis Obispo. 12.1.4 Railroad Hazards Reduction. The City shall monitor and respond to changes, or proposed changes in passenger and freight rail traffic that may impact the safety and well -being of residents of the community including the transport of combustible materials. 12.1.5 Transport of Combustible Materials. “The City shall discourage the transportation of oil and other combustible hydrocarbons through the City.” Chapter 13 – Parking Management 13.1.1 Parking Management Plan The City willshall maintain and periodically regularly update its Access and Parking Management Plan (every 5 years) and consider emerging best practices such as unbundled parking, smart parking technologies and cash out programs. Chapter 14- Neighborhood and Parking Management No changes from Draft LUE project description previously endorsed by Council Chapter 15 – Scenic Roadways 15.05.5 Scenic Highways 13.0.615.0.5 Scenic Highways The City will promote the creation of Scenic Highways within San Luis Obispo and adjoining county areas. This support should be strongly advocated when: 1.A. Reviewing draft county general plan elements or major revisions to them. 2.B. Reviewing changes to the Regional Transportation Plan (RTP) as a member agency of the San Luis Obispo Council Regional Transportation Agency. 3.C. Reviewing development projects that are referred to the city that are located along routes shown in the Conservation and Open Space Element. D. Actively participating in the development and periodic updates of the Caltrans US 101 Aesthetic Study in San Luis Obispo County. Attachment 1 PH3 - 21 14 Chapter 16 – Circulation Element Implementation, Program Funding and Management 16.0.6 New Policy Distribution of Transportation Funding The City shall encourage SLOCOG to consider initiating a county wide revenue measure devoted to local transportation funding on the basis of population, so that San Luis Obispo County becomes a “self help” county. Attachment 1 PH3 - 22 DRAFT SAN LUIS OBISPO PLANNING COMMISSION MINUTES September 10, 2014 CALL TO ORDER/PLEDGE OF ALLEGIANCE ROLL CALL: Commissioners Hemalata Dandekar, Michael Draze, Ronald Malak, William Riggs, and Chairperson John Larson Absent: Commissioner John Fowler and Vice-Chairperson Michael Multari Staff: Community Development Director Derek Johnson, Public Works Deputy Director Tim Bochum, Traffic Operations Manager Jake Hudson, Associate Planner Brian Leveille, Contract Planner Gary Kaiser, Assistant City Attorney Jon Ansolabehere, and Recording Secretary Diane Clement Consultants: Nick Johnson, Johnson Aviation; Rick Rust, Matrix Design Group; and Jeff Oliveira, Oliveira Environmental Consulting ACCEPTANCE OF THE AGENDA: The agenda was accepted as amended. The Agenda Forecast was done first to accommodate Commr. Draze who recused himself from consideration of the two items on the agenda. MINUTES: Minutes of August 13, 2014, were approved as amended. Minutes of August 27, 2014, were approved as presented. PUBLIC COMMENTS ON NON-AGENDA ITEMS: Bob Hitchner, Nexus eWater, described his company's water recycling solutions for homeowners and stated he is interested in working with staff to see how practical his system would be for the City. He left copies of his company’s white paper and noted that information can be downloaded from the company's website: http://www.nexusewater.com. There were no further comments made from the public. PUBLIC HEARINGS: 1. City-Wide. GPI/ER 15/12: Review of Draft Land Use Element (LUE) Chapter 7, Circulation Element Chapter 11 of the General Plan, Proposed Airport Overlay Zone, and associated changes to Noise and Safety Elements for consistency, City of San Luis Obispo – Community Development Dept., applicant. (Continued from August 27, 2014, meeting) (Gary Kaiser) Attachment 2 PH3 - 23 Draft Planning Commission Minutes September 10, 2014 Page 2 Commr. Draze recused himself from hearing the two items on the agenda and left the Council Chamber. Contract Planner Kaiser presented the staff report, which recommends the Commission review and recommend approval of the Draft Land Use Element Chapter 7, Circulation Element Chapter 11, proposed Airport Overlay Zone, and amendments to airport- related sections of the Noise and Safety Elements for consideration by the City Council. PUBLIC COMMENTS: Marilyn Reasoner, SLO, expressed concern about a change in airport landing patterns that has commercial planes making a hard left turn over her home in Los Verdes. She stated she made many calls to the airport resulting in short-term improvement followed by the problem getting worse. Mila Vujovich-LaBarre, SLO, stated that she is concerned about the safety of residents and tourists on the ground and in the air if the safety zones surrounding the airport are changed and urged the City to work with the Airport Land Use Commission. She stated that the plans for the Chevron property should be considered. She expressed concern that safety restrictions are being cast aside due to pressure from development interests. There were no further comments made from the public. COMMISSION COMMENTS: Community Development Director Johnson stated that safety has been at the forefront of all City recommendations and that the City also wants the airport to remain economically viable. He noted that City policies ensure ongoing compliance with State requirements and that the City will be working with the ALUC with the objective of reaching consensus. Commr. Dandekar stated that the safety and noise issues were discussed extensively at the LUCE Task Force and that future safety issues in any of the special areas would come to the Planning Commission. Commr. Larson noted that a “buyer beware” notification for future residences that may be subject to airport noise is the last solution to be considered and that first the City should try to resolve airport noise problems. Having said that, he noted that the City went through a very deliberate, thoughtful, and well-documented evaluation that supports the LUCE development concept and addresses airport operational noise and safety issues. There were no further comments made from the Commission. On motion by Commr. Dandekar, seconded by Commr. Malak, to approve the Resolution recommending the City Council approve updates to Chapter 7 of the Land Use Element and Chapter 11 of the Circulation Element and minor changes to the Noise and Safety Elements to ensure internal consistency of the General Plan. Attachment 2 PH3 - 24 Draft Planning Commission Minutes September 10, 2014 Page 3 AYES: Commrs. Dandekar, Larson, Malak, and Riggs NOES: None RECUSED: Commr. Draze ABSENT: Commrs. Fowler and Multari The motion passed on a 4:0 vote. On motion by Commr. Malak, seconded by Commr. Riggs, to adopt a Resolution recommending the City Council approve zoning regulations amendments and adopt Airport Overlay Zoning Regulations (Title 17 – Zoning Regulations) (GPI/ER 15-12) AYES: Commrs. Dandekar, Larson, Malak, and Riggs NOES: None RECUSED: Commr. Draze ABSENT: Commrs. Fowler and Multari The motion passed on a 4:0 vote. 2. City-Wide. GPI/ER 15-12: Continued review of the Draft Land Use Element (LUE) and associated Final Environmental Impact Report; City of San Luis Obispo, Community Development Dept., applicant (Gary Kaiser) Contract Planner Kaiser presented the staff report, recommending the City Council take the following actions: (1) Certify the LUCE FEIR and associated documents; (2) Approve policy and program updates to Land Use Element Chapters 1-6 and 8-12; and (3) Approve policy and program updates for South Broad Street Area Plan; and (4) Approve policy and program updates for Circulation Element Chapters 1-5. PUBLIC COMMENTS: Andrew Christie, SLO, director of the SLO Chapter of the Sierra Club, suggested several recommendations for incorporation into the Land Use and Circulation Elements to deal with impacts on air quality, the drought, and protection of the natural environment, including rainwater percolation and water recycling systems for new homes. Steve DelMartini, SLO, stated that he disagreed with the requirement to have residences only on the upper floors for property on the corner of Broad Street and Tank Farm Road. He noted that there is little housing planned for that area but there are many employees working near the airport who could benefit from nearby housing. He added that putting in more housing would benefit the City's trip reduction goals. Victor Montgomery, SLO, representing the 111-acre Madonna property south of Home Depot, stated that the LUCE recommendations for this property should be retained to give developers design flexibility. Mila Vujovich-LaBarre, SLO, noted that there are inconsistencies in the description of future portions of Prado Road; it is referred to as both a two-lane and a four-lane road in Attachment 2 PH3 - 25 Draft Planning Commission Minutes September 10, 2014 Page 4 the Draft EIR. She referred to it as a four-lane truck highway and stated that developers need to be informed of the cost of an overpass or interchange at Prado and Highway 101. She noted that the City has received letters from Cal Trans specifically stating that an interchange is not desirable or feasible yet the LUCE update says there will be one. She stated that this needs clarification. She added that an EIR is needed for the proposed northern alignment of Prado and, if Prado is going to be a four-lane truck road, there is a need to study the cumulative impacts and costs for future developers. She stated that the LUCE update did not adequately address the drought or other environmental impacts. Marshall Ochylski, representing the San Luis Ranch property, stated that he would like the minimums designated in the performance standards of Chapter 8 of the Land Use Element either eliminated or be footnoted to indicate that the minimums are not required if there are constraints that make it infeasible. He expressed concern that otherwise applicants would be required to apply for a General Plan amendment if the minimums cannot be met. He also supported retaining the possibility of meeting ten acres of the open space requirement for the specific plan via an off-site mitigation. Sarah Flickinger, SLO, representing the two Los Verdes Park HOAs, stated that clarification is needed about the alternative rerouting of Los Osos Valley Road to the south side of Los Verdes, known as the Buckley by-pass. There were no further comments made from the public. COMMISSION COMMENTS: Commr. Dandekar stated that there was much discussion at the LUCE Task Force about the San Luis Ranch property as a scenic entry to the City and concluded that guidelines for development were needed. Commr. Larson stated that the fundamental performance standard of 50% open space for this property is in the table and the nuance that allows a portion to be met with off- site mitigation is a controversial issue. Commr. Malak suggested a footnote or modification to the minimum and maximum space required for residential and commercial development. Mr. Rust stated that, in light of sustainability, a minimum gives developers an idea of what is expected but there could be a footnote stating that reductions are based on physical and/or environmental constraints although the City would still expect development to be close to the minimum requirements. Commr. Dandekar stated that she has an issue with some requirements for the Madonna at Los Osos Valley Road area. She noted that the Task Force came up with minimum numbers based on the discrepancy between future housing plans and target goals, and she thinks the range of 250-300 defeats that purpose. Attachment 2 PH3 - 26 Draft Planning Commission Minutes September 10, 2014 Page 5 Mr. Rust stated that the smaller estimate of housing for the Madonna property included moving housing away from the noise of Los Osos Valley Road. Commr. Malak stated that he wants a general minimum that is not specific to one site. Commr. Riggs stated that he does not understand the need for the footnote because the Commission has discretion when development comes up for review. Director Johnson explained that if development is less than the minimum, it might trigger the need for a General Plan amendment, and the purpose of a footnote would be to provide some discretion if site constraints prevented a development from meeting the minimum performance standards. Commr. Dandekar stated that the point was to get workforce housing that would reduce traffic. She added that the Task Force saw a need for pockets of higher density where young people could live near their work. She explained that there is a need to maintain that principle and that the sites were not lightly identified by the Task Force. Director Johnson stated that this policy and the table were the result of much discussion in the community and with the Council. He added that off-site mitigation remains a policy issue and not an EIR issue because staff did not have a specific site to evaluate. Commr. Malak stated that he supports a footnote applicable to all development that requires justification for going below the minimum because it would avoid the potential need for a General Plan update. Commr. Larson stated he had no problem with the footnote and Commr. Riggs stated he was not comfortable with it. Commr. Dandekar stated that the percentages generated by the Task Force were not about nostalgia but were in recognition that this is a gateway to the City and there is an aesthetic to protect. She added that even Cal Poly students have pointed out that these corridors are important and she gave the example of how the British have preserved much of the English countryside. Commr. Riggs stated that a general policy of transferability of use is important. Commr. Larson stated that the 50% open space requirement for the Dalidio property has been a notable benchmark for many years and the possibility of meeting it with any off-site consideration is a policy issue. Mr. Oliveira read from the Draft EIR about guidance for off-site consideration which noted that specific consideration is too speculative when there is no particular project to evaluate. Commr. Dandekar noted that this language takes care of the agricultural and open space land. She stated that the ability to reduce open space in exchange for work force housing is a principle. Attachment 2 PH3 - 27 Draft Planning Commission Minutes September 10, 2014 Page 6 Director Johnson stated that he is not sure staff has set the stage for applying this to all specific plan areas noted in the Land Use Element. He also noted that the Dalidio property is not yet a part of the City and there is a long-standing policy of requiring 50% open space when annexing property. Commr. Malak stated he would like to remove the language for the Broad Street/Tank Farm area that limits housing to upper floors. Commr. Dandekar stated that the Task Force concluded it is very important to have mixed use at this very significant corner and that this is no place for ground floor residences. Commr. Malak stated that this language ties the hands of developers. Commr. Riggs stated that the actual corner is not mentioned in the statement and there could be specific language about the corner. Commr. Larson stated that it is a key intersection and he can picture commercial on the corner with residential behind it. Mr. Rust recommended this language: “The site will provide a strong commercial presence at the intersection” which drops any reference to upper floor residences. In response to a question from Commr. Larson, Public Works Deputy Director Bochum read a letter from Cal Trans that does not preclude an interchange at Prado Road but recommends that the City evaluate alternatives and establish a clear purpose and need. Deputy Director Bochum noted that this will be a difficult project to get approved and will probably happen in conjunction with the development of San Luis Ranch. Traffic Operations Manager Hudson stated that the City had a legal agreement with Los Verdes to consider a Buckley Road/Los Osos Valley Road bypass but that scoping did not include closure of any portion of the current LOVR. He noted that the bypass on its own improved access in and out of Los Verdes and some creekside properties, and provided some relief to South Higuera. He added that when properties come up for development, the City will deal with the bypass, however closure of a portion of the existing road would need to be further considered through separate environmental review. A motion by Commr. Dandekar to continue until tomorrow received no second and was withdrawn. On motion by Commr. Malak , seconded by Commr. Dandekar, to approve the recommendation that the City Council certify the final EIR prepared for the LUCE Update Program. (Application #GPI/ER 15-12) AYES: Commrs. Dandekar, Larson, Malak, and Riggs NOES: None RECUSED: Commr. Draze Attachment 2 PH3 - 28 Draft Planning Commission Minutes September 10, 2014 Page 7 ABSENT: Commrs. Fowler and Multari The motion passed on a 4:0 vote. On motion by Commr. Riggs, seconded by Commr. Malak, to recommend the City Council approve updates to Chapter 8 of the Land Use Element of the General Plan. (GPI/ER 15-12) AYES: Commrs. Dandekar, Larson, Malak, and Riggs NOES: None RECUSED: Commr. Draze ABSENT: Commrs. Fowler and Multari The motion passed on a 4:0 vote. On motion by Commr. Riggs, seconded by Commr. Malak, to recommend the City Council change the language in 8.3.3.12 of the Land Use Update to read “The site will provide a strong commercial presence at the corner of Broad Street and Tank Farm Road” and delete “residential limited to upper floors.” AYES: Commrs. Dandekar, Larson, Malak, and Riggs NOES: None RECUSED: Commr. Draze ABSENT: Commrs. Fowler and Multari The motion passed on a 4:0 vote. Commr. Riggs proposed, and Commr. Malak seconded, the motion below. In the discussion that followed, Commr. Riggs stated that the City Council directed staff to look into off-site open space and agricultural provisions for San Luis Ranch and staff found that, while it was a good idea, the evaluation was inconclusive because there was no specific off-site open space to consider. Commr. Malak stated that when this was before the City Council, a number of residents indicated that they did not want any off-site mitigation for open space. Commr. Riggs stated that the Council gave direction to staff at that meeting to look at it, so it is worthy of consideration. Commr. Dandekar noted that in the LUCE Task Force discussions this was seen as a way for the City to gain more acreage for open space. Commr. Larson stated that, given what the community has said regarding the importance of open space, he is not inclined to recommend tinkering with this provision and he is not supporting the motion. Director Johnson stated that the motion by Commr. Riggs is recommending that the Council consider this principle with the details to be determined later and that it refers to Attachment 2 PH3 - 29 Draft Planning Commission Minutes September 10, 2014 Page 8 a maximum ten acre off-site mitigation with the multiplier to be determined when there is an actual proposal. On motion by Commr. Riggs, seconded by Commr. Malak, recommending that the City Council consider the exploration of the off-site open space and agricultural provisions for the San Luis Ranch project. AYES: Commrs. Dandekar, Malak, and Riggs NOES: Commr. Larson RECUSED: Commr. Draze ABSENT: Commrs. Fowler and Multari The motion passed on a 3:1 vote. On motion by Commr. Riggs, seconded by Commr. Dandekar, to retain minimum performance standards required as part of the specific plans listed in Chapter 8 of the Land Use Element but add a footnote stating that reductions to the minimums may be allowed based on physical and environmental constraints. AYES: Commrs. Dandekar, Larson, Malak, and Riggs NOES: None RECUSED: Commr. Draze ABSENT: Commrs. Fowler and Multari The motion passed on a 4:0 vote. Commr. Riggs proposed, and Commr. Dandekar seconded, the motion below. In the discussion that followed, Commr. Malak stated that he could anticipate situations where developers will use that 30% reduction to simply build for more profit while reducing open space. Commr. Dandekar stated that this possibility of trading open space for housing is important because the City has not been able to get developers to consider this kind of housing. Commr. Malak pointed out that very little affordable housing has been built or planned in the Margarita area. Commr. Dandekar responded that having a minimum plus an incentive takes the developer beyond doing just the minimum which is what has been done at Margarita. Commr. Malak stated that he sees the Commission as a gatekeeper of development and that the City needs to tell developers to build to the needs of the City. Commr. Riggs stated that this consideration for a reduction of open space is in addition to a low market rate policy and is icing on top of that cake. He added that there is a real need to incentivize workforce housing and this is the equivalent of a density bonus. Attachment 2 PH3 - 30 Draft Planning Commission Minutes September 10, 2014 Page 9 Commr. Dandekar noted that the City does not have the tools to force development of workforce housing. Director Johnson noted that the question for consideration is whether to expand the draft footnote to specific plan areas in addition to Avila Ranch and that the intent is not to set up conflicts between community goals of housing with community goals of acquiring open space. Commr. Larson stated this is a controversial item for Avila Ranch with significant opposition and that expanding this to the other specific plan areas is a non-starter. On motion by Commr. Riggs, seconded by Commr. Dandekar, to request that the City Council explore a 30% reduction of open space where it is appropriate for specific plan areas to accommodate affordable housing needs consistent with the Regional Housing Needs Assessment. AYES: Commrs. Dandekar and Riggs NOES: Commrs. Larson and Malak RECUSED: Commr. Draze ABSENT: Commrs. Fowler and Multari The motion resulted in no action based on a 2:2 vote. There were no further comments made from the Commission. COMMENT AND DISCUSSION: 3. Staff a. Agenda Forecast by Director Johnson Meetings on September 11, 17, and 18, 2014—LUCE Update September 24, 2014—appeal of Director's decision for a nonconforming structure ADJOURNMENT: The meeting was adjourned at 11:09 p.m. Respectfully submitted by, Diane Clement Recording Secretary Attachment 2 PH3 - 31 DRAFT SAN LUIS OBISPO PLANNING COMMISSION MINUTES September 11, 2014 CALL TO ORDER/PLEDGE OF ALLEGIANCE ROLL CALL: Commissioners Hemalata Dandekar, Michael Draze, Ronald Malak, William Riggs, and Chairperson John Larson Absent: Commissioner John Fowler and Vice-Chairperson Michael Multari Staff: Community Development Director Derek Johnson, Public Works Deputy Director Tim Bochum, Traffic Operations Manager Jake Hudson, Associate Planner Brian Leveille, Contract Planner Gary Kaiser, Assistant City Attorney Jon Ansolabehere, and Recording Secretary Diane Clement Consultant: Rick Rust, Matrix Design Group ACCEPTANCE OF THE AGENDA: The agenda was accepted as presented. MINUTES: Minutes of September 10, 2014, were continued. PUBLIC COMMENTS ON NON-AGENDA ITEMS: There were no comments made from the public. PUBLIC HEARINGS: 1. City-Wide. GPI/ER 15-12: Continued review of the Draft Land Use Element (LUE) and associated Final Environmental Impact Report; City of San Luis Obispo, Community Development Dept., applicant. (Gary Kaiser) Focus for this meeting: Provide recommendation to City Council for Policies and Programs in Chapters 1-6 and 9-12 of the draft Land Use Element and Policies and Programs in Chapters 1-5 of the draft Circulation Element, as part of a City- wide effort to update the Land Use and Circulation elements of the General Plan. Contract planner Gary Kaiser presented the staff report and summarized how public input and staff recommendations were reflected in the staff report attachments, including a staff recommendation for a new policy regarding limits to provision of recycled water outside the City limits. PUBLIC COMMENTS: Eugene Jud, SLO, thanked the City for reducing the vehicle share to 50% and emphasizing multimodal transportation. He suggested the addition of a new transportation goal in the Circulation Element to project the image of the City as a Attachment 2 PH3 - 32 Draft Planning Commission Minutes September 11, 2014 Page 2 known non-car city to continue the legacy of the City as a pioneer, such as with no smoking and no drive-through service ordinances. He also suggested that transit access be required with development like utilities such as water and electricity. He gave several examples of how transportation is handled in Zurich, Switzerland. Myron Amerine, SLO, stated that he hoped the City and the County will add protected bikeways with buffer zones as provided for in the new State law. Mila Vujovich-LaBarre, SLO, expressed concern that the piecemeal development of Prado Road as a truck highway is for the benefit of developers and that no comprehensive EIR has been planned. She supported Class 1 bicycle lanes but stated that the 800,000 square feet planned for development on the Chevron property should be reduced by half. She noted that the San Luis Ranch is one of only one 100 parcels classified as prime agricultural land and development on this land is in conflict with the LUE which calls for preservation. She expressed concern about tall hotel development on lots zoned for one-story car dealerships and noted that this view shed is a gateway to the City. She added that she agrees with Mr. Jud and the letter from the Sierra Club. Blayne Morgan, SLO, supported the modal split objectives and suggested Higuera be closed to vehicles for short periods, and a study be done of the resulting impacts. Eric Meyer, SLO, stated that as a private citizen he is proud of the LUCE document and the advocates on various issues who came to Task Force meetings time after time and how everyone worked together. There were no further comments made from the public. COMMISSION COMMENTS: Land Use Element--Chapter 1 Commr. Draze stated that he supports the language in 1.13 about consideration of a range of financing options for calculating the fair share of costs for new development. Commr. Larson stated that the concept of fair share payment by new development has been tested and is in statutory language. He added that the City has some limitations on what they can impose on new development. He stated that staff has done a good job in the way this has been addressed in policy. Commr. Dandekar noted that the rationale for annexation of all or part of the Cal Poly property is not included in 1.12.3. Director Johnson stated that studying the benefits and costs of annexing Cal Poly would be done at the direction of the City Council at some future time. Commr. Dandekar stated that this seems expansionist and there should be a definition of what parts of the campus are being considered for annexation. Attachment 2 PH3 - 33 Draft Planning Commission Minutes September 11, 2014 Page 3 Commr. Larson stated that this is the first time he has seen this policy in writing but he noted that the concept has been discussed for decades. Director Johnson stated that counting Cal Poly in demographics could be beneficial to the City. Land Use Element--Chapter 4 Commr. Larson stated that the reference to “A Conceptual Physical Plan for the City's Center” in the Introduction helps for clarity when considering new projects. Commr. Riggs suggested adding “parklets” to the new policy about downtown green space between 4.0.6 and 4.0.7 on page 67 so it reads as follows: “including pocket parks and parklets, as the number of people living Downtown increases.” Land Use Element--Chapter 9 Commr. Riggs commended staff, the City Council and the public for including a new program about renewal of the urban forest. Commr. Malak recommended inclusion in 9.3.7 encouragement for building solar-ready homes and solar canopies, such as the solar panel arrays in local school parking lots. Commr. Larson supported this as providing more details for sustainability. Mr. Rust recommended language to read “The City shall encourage….” Comm. Riggs wanted to include a description of the term solar canopies. Commr. Draze stated he was happy to see that grey water is included under Plumbing in 9.3.7D. Mr. Rust pointed out that on page PC 2-43 of the Staff Report, staff has recommended adding “and encourage new homes to be constructed grey water ready ” to 9.3.7D. Commr. Draze stated he likes “encourage” because requiring this could be a deal breaker for some types of housing. Commr. Malak stated he prefers “where appropriate” instead of “encourage.” Commr. Draze stated that he favors “encourage” until the City has more experience dealing with grey water. Commr. Larson stated “encourage” is appropriate. This was acceptable to Commr. Malak. Commr. Dandekar supported the staff addition of a new incentive program for sustainable design features as it sets a direction for the future. Attachment 2 PH3 - 34 Draft Planning Commission Minutes September 11, 2014 Page 4 Land Use Element--Chapter 10 Commissioner Draze asked how the City would support healthy food retailers as part of supporting sustainable local food systems. Commr. Riggs stated that in in West Oakland there is a city-supported back-to-work program at a food retailer. He added that keeping the language flexible is important. Land Use Element--Chapter 12 Commr. Draze commended the language in 12.3.12 Interagency Communication as being much better and more sensible than the original wording. Circulation Element--Chapter 1 Commr. Larson stated that the revised Table 1 Modal Split Objectives shows the most important change in the update and illustrates the City's significant commitment. Commr. Riggs thanked Mr. Jud for his comments and suggested adding “creative transportation demand management” after “strategies” and before “telecommuting” in 1.5.1 Transportation Goals, #8. He noted that he appreciates Mr. Jud's request for a non-car goal but prefers the intent of 1.5.1 as a fair plan that speaks to all people. Commr. Draze stated that he agrees with this change and noted that the beauty of the short two-column Table 1 is that it emphasizes the modal split. Circulation Element--Chapter 3 Commr. Riggs suggested adding “The City shall encourage transit accessibility” to 3.0.7 Transit Service Access just before the sentence that begins “New development....” The other Commissioners agreed. Circulation Element--Chapter 4 Commr. Larson noted that, in reference to 4.0.4 New Development and 6.0.4 Defining Significant Circulation Impact, the State has released new draft CEQA requirements that involve measuring traffic impacts by Vehicle Miles Traveled, rather than Level of Service, because it tells more about emissions, energy consumption and the adverse effects of vehicles. He suggested that the City should try to reconcile its language with this, even though continuing to use LOS may be allowed by legislation. Traffic Operations Manager Hudson responded that staff is struggling with this right now because new State language is not yet approved. He added that the City will continue to use LOS to identify impacts but will override that when necessary. Commr. Draze stated that not all impacts rise to the level of CEQA, and he prefers to leave the current language in place to cover these other kinds of impacts. Attachment 2 PH3 - 35 Draft Planning Commission Minutes September 11, 2014 Page 5 Mr. Rust stated that there was agreement to add “and maintaining” just after “expanding” in 4.1.9 Bicycle Licensing. Commr. Riggs stated that he sees no reason to move 4.1.1 from Chapter 4 to the Traffic Reduction section as recommended by the Task Force. He added that he would like this statement to be stronger and to directly incentivize cycling. Commr. Larson recommended moving this language to the Traffic Reduction section and keeping a copy of the same language in 4.1.1 but substituting “bicycling” for “alternative forms of transportation.” Commr. Dandekar supported this modification. There were no further comments made from the Commission. Chair Larson reopened Public Comment at this time. Eric Meyer, SLO, noted that the recycling symbol shows up randomly throughout the document but is not explained or defined until page 11 in Chapter 2 of the Circulation Element. He suggested that this should be at the end of the Table of Contents. Myron Amerine, SLO, asked if there is a goal to establish a pedestrian/bicycle advisory commission that is separate from the bicycle advisory groups. He stated that maybe there should be a multimodal coordinator. Traffic Operations Manager Hudson stated that a letter was received asking that consolidation of the transit advisory bodies be considered, which will be done after the policies and programs are finalized. Director Johnson added that staff will get direction from the City Council about whether the organizational structure in place can support this paradigm shift. Mr. Jud stated that Chapter 3 Transit Service should have language making transit a prerequisite for new development. Traffic Operations Manager Hudson stated that new development triggers an impact study that includes transit and, if there is no transit, the LOS grade would be F. Mr. Jud asked if there is a standard for walking from an advocacy group like there is for biking. He stated that the City should set a walking goal. Mila Vujovich-LaBarre stated she would like to see consideration for light rail, perhaps with a route from the airport to San Luis Obispo High School to Cal Poly. Commr. Larson responded that this would have to be done through SLOCOG and it would be about improving intra-county use of current rail lines, not light rail. There were no further comments made from the public. Attachment 2 PH3 - 36 Draft Planning Commission Minutes September 11, 2014 Page 6 COMMISSION COMMENTS: Commr. Draze asked that staff present an explanation of LOS at a future meeting. There were no further comments made from the Commission. On motion by Commr. Riggs, seconded by Commr. Dandekar, recommending the City Council approve updates to Chapters 1-6 and 9-12 of the Land Use Element and Chapters 1-5 of the Circulation Element including all changes made by staff and the following changes: a. LUE new policy between 4.0.6 and 4.0.7 to read: “including pocket parks and parklets,..” b. LUE 9.3.7: add “H. The City shall encourage the building of solar-ready homes.” and “I. The City shall encourage the building of solar canopies.” c. CE 1.5.1.8: insert “creative transportation demand management” after “strategies” and before “telecommuting.” d. CE 3.0.7: insert “The City shall encourage transit accessibility” before the sentence that begins “New development....” e. CE 4.1.1: move the language in 4.1.1 from Chapter 4 to the Traffic Reduction section and keep a copy of the same language in 4.1.1 but substitute “bicycling” for “alternative forms of transportation.” f. CE 4.1.9: add “and maintaining” just after “expanding.” g. Policy recommendations provided in the policy matrix attachment as noted during the presentation. AYES: Commrs. Dandekar, Draze, Larson, Malak, and Riggs NOES: None RECUSED: None ABSENT: Commrs. Fowler and Multari The motion passed on a 5:0 vote. COMMENT AND DISCUSSION: 2. Staff a. Agenda Forecast by Director Johnson Wednesday, September 17, 2014—LUCE Update Thursday, September 18, 2014—LUCE Update September 24, 2014—appeal of Director's decision for a nonconforming structure 3. Commission a. Commr. Malak encouraged Commrs. Riggs and Dandekar to have their students to do short presentations at Commission meetings. Commr. Dandekar stated that this was a very kind invitation which she will use judiciously. Commr. Riggs stated that he has students doing an open space study for Natural Resources Manager Hill about accessibility, who uses natural spaces, how to steward open spaces better and interfaces with the public. Attachment 2 PH3 - 37 Draft Planning Commission Minutes September 11, 2014 Page 7 Students have been interviewing individuals about their experiences with natural spaces. ADJOURNMENT: The meeting was adjourned at 9:14 p.m. Respectfully submitted by, Diane Clement Recording Secretary Attachment 2 PH3 - 38 DRAFT SAN LUIS OBISPO PLANNING COMMISSION MINUTES September 17, 2014 CALL TO ORDER/PLEDGE OF ALLEGIANCE ROLL CALL: Commissioners Hemalata Dandekar, Michael Draze, Ronald Malak, William Riggs, Vice-Chairperson Michael Multari, and Chairperson John Larson Absent: Commissioner John Fowler Staff: Community Development Director Derek Johnson, Public Works Director Daryl Grigsby, Public Works Deputy Director Tim Bochum, Principal Transportation Manager Peggy Mandeville, Associate Planner Brian Leveille, Associate Planner Marcus Carloni, Assistant City Attorney Jon Ansolabehere, and Recording Secretary Diane Clement Consultant: Jim Damkowitch, Kittelson and Associates Commr. Riggs announced that he will be leaving at 8 p.m. ACCEPTANCE OF THE AGENDA: The agenda was accepted as presented. MINUTES: The minutes for September 10 and 11, 2014, were continued. PUBLIC COMMENTS ON NON-AGENDA ITEMS: Mila Vujovich-LaBarre, SLO, suggested that the proposed Marriott hotel be built on the site of the defunct Motel Inn at the bottom of the Cuesta grade and supported not changing the zoning on Calle Joaquin for auto dealerships. There were no further comments made from the public. PUBLIC HEARINGS: 1. City-Wide. GPI/ER 15-12: Continued review of the Draft Land Use and Circulation Elements (LUCE) and associated Final Environmental Impact Report; City of San Luis Obispo – Community Development and Public Works Dept., applicant. PUBLIC COMMENTS: Lea Brooks, SLO, stated that she is thrilled with the multi-modal focus but questioned the prioritization of vehicles over bicycles for Los Osos Valley Road as listed in Table 3 Attachment 2 PH3 - 39 Draft Planning Commission Minutes September 17, 2014 Page 2 Modal Priorities for Level of Service. She asked how priorities are decided for intersections where pathways cross and requested that the impacts on bicyclists be considered if truck traffic is routed down Buckley Road. Eric Meyer, SLO, asked that the City consider how perimeters are determined when setting up Neighborhood Traffic Management Districts because those perimeters can affect the voting. He noted that this was discussed by the LUCE Task Force. He stated that the City should consider the effect of not constructing the Bishop Street railroad overpass on the Buchon and Pismo Streets neighborhood and give priority to those neighborhoods operating at or above maximum traffic levels. Myron “Skip” Amerine, SLO, stated that he wants the City to move forward by approving the Circulation Element Update. He supported the mode split but noted that it is a goal and will not happen overnight. Mila Vujovich-LaBarre, SLO, stated she is a smart growth advocate and remains concerned about Prado Road which she recommended be limited to a concept similar to South Street. She noted the need for a supplemental EIR for the Margarita area and supported having developers of the San Luis Ranch pay for a Prado Road overpass. She advocated moving the future Prado Road to the south of the Damon-Garcia Sports Field and giving priority to building Class 1 bicycle paths. Sarah Flickinger, representing 178 homes in Los Verdes Park 1 and 2, stated that she did meet with staff and is now comfortable with the proposed changes presented tonight. There were no further comments made from the public. COMMISSION COMMENTS: Commr. Riggs stated that Chapters 7 and 8 should reference each other. He suggested inserting additional language that after discussion resulted in adding “including navigation routes to direct traffic” to the first sentence and adding a second sentence, “Navigation routing and other smart access technologies should be considered as part of the update to the Access and Parking Management plan.” Commr. Riggs stated that he appreciates Mr. Meyer's comments and noted there is a need for 8.0.5 to include a statement about neighborhood definition. Commr. Multari stated that the Sierra Club, in their suggested policy language, did speak to unbundled parking. He asked Commr. Riggs to give his opinion about a proposed program suggesting that the City evaluate existing regulations to determine whether unbundled parking would benefit land use and circulation in parts of the City. Commr. Larson agreed but stated that the issue is larger than just unbundled parking because that the City's approach to traffic management may be a little out-of-date. He suggested the addition of a sentence to 13.1.1. to show that the desire and impetus is to go beyond traditional parking management. Attachment 2 PH3 - 40 Draft Planning Commission Minutes September 17, 2014 Page 3 Commr. Draze suggested adding “...consider such things as unbundled parking.” Commr. Riggs proposed the following as a second sentence for 13.1.1: “This shall include consideration for strategies including, but not limited to, unbundled parking.” He suggested listing just a couple of strategies at the end of the sentence. Commr. Multari suggested adding a reference to emerging practices which Commr. Riggs supported. Commr. Draze stated that he understands the concern about the bicycle LOS on truck roads but agrees with staff that ranking bicycles second on Los Osos Valley Road is the best that can be done. He supported speed tables over speed bumps on local streets because vehicles can go over them without incurring damage. He suggested deleting 8.1.4 City Vehicle Operation because the volume of City vehicle traffic is low and keeping it in may cause people to question the presence of a City vehicle in their neighborhood. He noted that there is nothing about non-passenger rail transportation in Chapter 12 but that a future increase in freight traffic must be anticipated because the Orcutt railroad overpass is still included in City planning. Deputy Director Bochum stated that this is correct and that there used to be severe issues with trains stopping on Orcutt Road and that there is currently a great deal of focus nationwide on the hauling of fuels and combustibles. He suggested that the Commission develop the language to address this. Commr. Draze noted that bicycles should be included in 13.1.5 Curb Parking Evaluation and that 15.0.6 Designation of Scenic Highways should include everything in the planning area including areas outside the City's sphere of influence. Commr. Multari stated that it is important to leave “voting” in 8.0.5 Neighborhood Traffic Management Guidelines. He noted that there is a question of how to do the voting and determine the boundaries. He suggested adding “and develop an outreach program on the availability of the program”. He also suggested adding a reference to excessive right of way pavement in the first sentence of 8.1.3 Quality of Life because there are streets that are too wide for their purpose and that reducing the amount of paving would create opportunities for parkways, traffic circles, and street trees. He also suggested adding “The City should give priority to existing streets that exceed thresholds .” He agreed with Commr. Draze's concern about the transport of oil and hydrocarbons through the City and noted that some of the highest density areas are closest to the tracks. Commr. Draze suggested this language for Chapter 12: “The City shall monitor and respond to changes or proposed changes in passenger and freight rail traffic that may impact the safety and well-being of residents of the community including the transport of combustible materials.” Commr. Multari suggested also adding “The City shall discourage the transportation of oil and other combustible hydrocarbons through the City.” Attachment 2 PH3 - 41 Draft Planning Commission Minutes September 17, 2014 Page 4 Commr. Riggs stated that he supports everything discussed to this point, especially Commr. Multari's suggestion about dealing with excessive right-of-way. He left the meeting at 8:00 p.m. Commr. Multari suggested adding “and consider emerging best practices such as unbundled parking, smart parking technologies and cash out programs ” at the end of 13.1.1. Commr. Dandekar expressed concern about the availability of traffic data for citizens. Principal Transportation Manager Mandeville suggested putting data in the Neighborhood Traffic Guidelines, which could be current to the date of the document. Deputy Director Bochum stated that the City might be able to produce a map display online as part of the NTM guidelines that could be updated periodically. Commr. Larson stated that he supported Commr. Multari’s idea of developing outreach programs for NTM information. Commr. Multari noted that the City has, in the past, sometimes unilaterally decided that certain areas are impacted and has tried to put in traffic calming which upset neighborhoods. He stated that NTM should be grassroots-generated. He stated that the information should be publicized and made available, and then the City should see what results from that. Commr. Dandekar stated that she likes the web interface with timely updates. In response to a question from Commr. Draze about support for deletion of 8.1.4, Commrs. Malak and Larson indicated they preferred deletion. That is a majority with five Commissioners in attendance. Commr. Multari stated he had no strong feelings about the deletion. Commr. Dandekar supported leaving it in as a statement about City commitment to doing what it is asking citizens to do. Commr. Multari stated that after reading the material and listening to public comments, he still supports four lanes for Prado Road. Commr. Draze agreed and noted that, when development occurs, Prado could end up as a two-lane road but he prefers planning for four lanes. Commr. Multari stated that future technology and behavioral changes may alter the need for four lanes but the Commission is not in a position to make that leap. Commr. Dandekar stated that she supported Commr. Draze’s comment about expanding scenic roadway identification beyond the City boundary. She noted that at the LUCE Task Force, Cal Poly students were very supportive of Highway 1 as a scenic road beyond the City limits. She suggested that the City pursue identification for one or two roads of high value. She asked if there is a mechanism for doing that. Attachment 2 PH3 - 42 Draft Planning Commission Minutes September 17, 2014 Page 5 Commr. Larson stated that unless the City and the community strongly initiate doing something, nothing will happen, but he is not opposed to being a little more precise in identifying what is wanted. Deputy Director Bochum stated that SLOCOG is responsible for designating local highways as scenic. He suggested adding language to address that. Commr. Larson asked if the language suggested above for 15.0.6 should be in 15.0.5B. Commr. Draze supported Commr. Multari's suggested language additions in 8.1.3 Quality of Life about excess paving. Deputy Director Bochum suggested changing the second sentence of 15.0.5 to read “This support should be strongly advocated when:” followed by the four bullet items. Commr. Larson stated that the perceived intent that a lot of people have is that developers should pay for roads, i.e., when Mila Vujovich-LaBarre tonight supported having the San Luis Ranch developers pay for the Prado overpass. He noted that the City is constrained by State law from imposing that and some future road projects would serve more than just adjacent land. He added that all developers should pay their fair share. Deputy Director Bochum stated that the next big effort is to analyze the issue of financing because it cannot all be done by development, and it will take participation by everyone including regional, state, and, possibly, federal levels. The City will have to prioritize expenditures and assign transportation funding to meet multi-modal objectives. There were no further comments made from the Commission. On motion by Commr. Multari, seconded by Commr. Draze, to recommend the City Council approve updates to Chapters 6-10 and 12-16 of the Circulation Element of the General with the inclusion of the multi-model level of service examples added as an appendix to the Circulation Element, and with the following additions staff presented tonight in Attachment 2 and the following changes made by the Planning Commission: (Staff Presented Additions as Modified by Planning Commission) Madonna & Higuera Realignment. Development of the properties North and South of Madonna Rd. West of Higuera shall incorporate a detailed analysis for Madonna Road west of Higuera and the intersection of Higuera and Madonna and recommend improvements, if any. Chorro, Broad, & Boysen Realignments. Redevelopment of University Square shall incorporate a detailed circulation, safety & access management analysis for the intersections of Boysen & Santa Rosa (potential for grade separation crossing/restrictions), Foothill & Chorro, and Foothill & Broad as well as driveway access points along adjacent roadways. and recommend improvements, if any. Attachment 2 PH3 - 43 Draft Planning Commission Minutes September 17, 2014 Page 6 Pismo & Higuera Realignment. Redevelopment of properties at the intersection of High & Pismo at Higuera shall incorporate a detailed analysis and recommend improvements, if any. Planned Bishop Street Connection. The City shall conduct a detailed subarea traffic analysis to determine if secondary measures can be made to allow for elimination of the Bishop Street Extension and protection of neighborhood traffic levels and recommend improvements, if any. Los Osos Valley Road Bypass . The City shall conduct a detailed subarea traffic analysis to determine final feasibility of the LOVR Bypass. Issues to be studied should include, but are not limited to impacts to: sensitive noise receptors, agriculture operations, open space, Creek, traffic and biological resources. ; and/or As part of LOVR Creekside Special Planning Area, the project shall analyze impacts of a new roadway connection in some form from Los Osos Valley Road to Higuera. (Planning Commission Recommended Policy Changes) 7.1.7 Traffic Access Management The City shall adopt an access management policy to control location, spacing, design and operation of driveways, median openings, crosswalks, interchanges and street connections to a particular roadway including navigation routes to direct traffic in a manner that preserves the safety and efficiency of the transportation system. Navigation routing and other smart access technologies should be considered as part of the update to the Access and Parking Management plan. 8.0.5 Neighborhood Traffic Management Guidelines The City shall update its Neighborhood Traffic Management Guidelines to address voting, funding, and implementation procedures and develop an outreach program on the availability of the program. 8.1.3 Quality of Life When requested by neighborhoods, The City shall analyze residential streets shall be analyzed for their livability with regards to multi-modal traffic noise, volumes, speed and potential excess right-of-way pavement. Traffic calming or other intervening measures. may be necessary to maintain the resident's quality of life. The City should give priority to existing streets that exceed thresholds. 8.1.1 City Vehicle Operation OperatorsThe City shall direct operators of City vehicles, excluding police patrols, should not to use Residential Collector or Residential Local streets as shortcut routes for non-emergency City business. 12.1.3 Idling Train Engines Interagency Cooperation. The City shall coordinate railroad facility infrastructure maintenance with the Union Pacific Railroad and the Public Utilities Commission. In addition, the City shall work with the Air Pollution Control District and others to eliminate discourage idling train engines in San Luis Obispo. Attachment 2 PH3 - 44 Draft Planning Commission Minutes September 17, 2014 Page 7 12.1.4 Railroad Hazards Reduction. The City shall monitor and respond to changes, or proposed changes in passenger and freight rail traffic that may impact the safety and well -being of residents of the community including the transport of combustible materials. 12.1.5 Transport of Combustible Materials. “The City shall discourage the transportation of oil and other combustible hydrocarbons through the City.” 13.1.1 Parking Management Plan The City will shall maintain and periodically regularly update its Access and Parking Management Plan (every 5 years) and consider emerging best practices such as unbundled parking, smart parking technologies and cash out programs. 13.0.615.0.5 Scenic Highways The City will promote the creation of Scenic Highways within San Luis Obispo and adjoining county areas. This support should be strongly advocated when: 1.A. Reviewing draft county general plan elements or major revisions to them. 2.B. Reviewing changes to the Regional Transportation Plan (RTP) as a member agency of the San Luis Obispo Council Regional Transportation Agency. 3.C. Reviewing development projects that are referred to the city that are located along routes shown in the Conservation and Open Space Element. D. Actively participating in the development and periodic updates of the Caltrans US 101 Aesthetic Study in San Luis Obispo County. AYES: Commrs. Dandekar, Draze, Malak, Larson, and Multari NOES: None RECUSED: None ABSENT: Commr. Fowler (Commr. Riggs left early) The motion passed on a 5:0 vote. COMMENT AND DISCUSSION: 2. Staff a. Agenda Forecast by Director Johnson—deferred to tomorrow's meeting. 3. Commission ADJOURNMENT: The meeting was adjourned at 9:53 p.m. Respectfully submitted by, Diane Clement Recording Secretary Attachment 2 PH3 - 45 DRAFT SAN LUIS OBISPO PLANNING COMMISSION MINUTES September 18, 2014 CALL TO ORDER/PLEDGE OF ALLEGIANCE ROLL CALL: Commissioners Hemalata Dandekar, Michael Draze, Ronald Malak, William Riggs, Vice-Chairperson Michael Multari, and Chairperson John Larson Absent: Commissioner John Fowler Staff: Community Development Director Derek Johnson, Associate Planner Brian Leveille, Contract Planner Gary Kaiser, Assistant City Attorney Jon Ansolabehere, and Recording Secretary Diane Clement ACCEPTANCE OF THE AGENDA: The agenda was accepted as presented. MINUTES: The minutes for September 10, 11, and 17, 2014, were continued. PUBLIC COMMENTS ON NON-AGENDA ITEMS: There were no comments made from the public. PUBLIC HEARINGS: 1. City-Wide. GPI/ER 15-12: Continued review of the Draft Land Use and Circulation Elements (LUCE) and associated Final Environmental Impact Report; City of San Luis Obispo – Community Development Dept., applicant. (Gary Kaiser) Contract Planner Kaiser presented the staff report, recommending the City Council take the following actions: (1) Approve policy and program updates for Circulation Element Chapters 6-10 & 12-16; and (2) Approve changes to the Land Use Element diagram and associated Zoning updates. PUBLIC COMMENTS: Eugene Jud, SLO, stated that the South Hills Open Space should be expanded to preserve cultural heritage and archeological resources, and the proposed Prado Road extension should be a two-lane road that connects to Tank Farm Road. He asserted that promises made to the public that the City would come up with solutions to preserve open space, view sheds, and agricultural land have not been kept. He presented alternative ideas in a slide presentation and hand-out that included options for the years 2035 and 2050, and noted the need to consider all factors such as open space, cultural Attachment 2 PH3 - 46 Draft Planning Commission Minutes September 18, 2014 Page 2 heritage, view sheds and prime agricultural land when planning for land use and circulation. Stephen Peck, SLO, representing the Avila Ranch Project requested that t he Commission determine specific land uses, including the Special Focus overlay, for this property at this meeting to facilitate development. Commr. Draze noted that this is not on the agenda tonight and the Commission cannot make a recommendation on the zoning. Assistant City Attorney Ansolabehere stated that fulfilling Mr. Peck's request would require going back through the referral process with the Airport Land Use Commission for a determination of consistency. Mr. Peck stated that he disagrees with Attorney Ansolabehere's interpretation that this is something new that has not been analyzed but that he will withdraw his request if it means going back to the ALUC. Commr. Dandekar stated that when suggestions were brought forth at the LUCE Task Force and staff was providing some general ideas for that land, it was generally understood that the Specific Plan process would work out the details. There were no further comments made from the public. COMMISSION COMMENTS: Commr. Multari stated he is concerned that the language in the new Chapter 17.53 will not resolve conflicts between the language in the General Plan and the language for each of the Special Plan Areas where the LUCE Task Force noted the need for additional flexibility. He stated that the idea of the Task Force was that the existing zoning was not the tool for these areas and, if it was, then they would not be special plan areas. Director Johnson stated that the last sentence in 17.53.030 provides the flexibility and discretion needed to deal with each Special Plan Area because each has its own circumstances and factors that will drive that flexibility. He suggested that this sentence be moved to 17.53.020. Commr. Larson explained that Commr. Multari was saying the whole point of the Land Use Update and identification of Special Focus Areas is to recognize that traditional zoning may not capture the desire of the City and community as to what to do in these areas. He stated that the last sentence in 17.53.030 is designed to deal with any conflicts. He agrees with Director Johnson that this sentence should perhaps be in 17.53.020. Commr. Multari agreed that this was his concern. Director Johnson stated that what is needed next is an update of zoning ordinances. Attachment 2 PH3 - 47 Draft Planning Commission Minutes September 18, 2014 Page 3 Commr. Multari asked if the Commission would be recommending an ordinance change to the City Council. Director Johnson affirmed that this is correct. Commr. Riggs stated that he does not share Commr. Multari's concern and that staff has done the best job possible of marrying the LUCE intent with zoning. He added that he was comfortable making a recommendation to prioritize revising some of the zoning code as a separate motion. Commr. Draze stated that he agreed with moving the last sentence of 17.53.030 to 17.53.020. Commr. Multari stated he was harping on this because the LUCE Task Force belabored the Special Planning Areas with the idea of getting away from standard zoning districts. Commr. Dandekar stated that the maps surprised her because the Special Plans are clear and she had been confident that the intent of the LUCE would be actualized. She asked about the process for development of a property in a Special Plan Area. Associate Planner Leveille stated that it could vary significantly but would mostly likely involve architectural and subdivision approval with just a few steps in the process, and, if it was just one building at a time, it could just require architectural review. Commr. Multari stated that development in the Special Plan Areas should come to the Planning Commission in every case. He noted that there should be a list of things that must be done for any area with an SF designation. Commr. Dandekar stated that the LUCE Task Force spent a lot of time identifying the Special Plan Areas as crucial locations and is concerned about whether the intent of the Task Force could be achieved through the process described by Associate Planner Leveille. Director Johnson stated that changes could be made to reflect that development in these areas must be reviewed by the Planning Commission. He noted that this could be put in a table of the Special Plan Areas. Commr. Larson asked the Commission to think about whether it would be consistent with the intent to have review and interpretation done by the Planning Commission for these areas which are like miniature Specific Plan Areas. Commr. Dandekar stated she has heard tonight that there is potential to piecemeal these projects, which would be against the intent of the Task Force and that each of these areas need to be seen as a whole. Commr. Multari stated that he and Commr. Dandekar are on the same page, having served on the LUCE Task Force, which did not want these areas to have Specific Plans, but did want them to go through a review that is more careful and customized. He added that, if it is clear that flexibility is afforded via the language in 17.53, and there will be review by the Planning Commission, he is inching closer to a comfort level. Attachment 2 PH3 - 48 Draft Planning Commission Minutes September 18, 2014 Page 4 Commr. Larson stated that the Commission is struggling with the nuts and bolts, the right words and direction for overview, with the recognition that an overhaul of the zoning code is coming soon. Commr. Draze stated it would be necessary to take out the Community Development Director for review and adjust Table 9 to reflect having the Planning Commission do the reviews. Commr. Riggs asked why the City would want to impede single parcel owners and encourage parcel assembly. He added that this does not make things more flexible. Commr. Multari stated, as an example, that the Task Force had a long discussion about the Foothill/Santa Rosa Area which has taken a long time to redevelop. He explained that the idea was to avoid looking at each parcel apart from some kind of vision or comprehensive view for the entire area. He noted that, because of the special circumstances, in some cases there should be either more restrictions or more flexibility. He added that the LUCE Task Force looked at each area in detail, trying to capture what would be best for the community, and tried to encourage development of a comprehensive view before the individual parcels are developed. Commr. Riggs stated that he sees this as an impediment and asked what the incentives would be for development. Commr. Multari stated that this may be an impediment because it will require landowners to do some long range comprehensive planning involving properties they do not control, take circulation into account, and talk to their neighbors. Commr. Dandekar stated that these areas were seen as catalyst zones requiring action by the City. Commr. Riggs stated that he also sees these areas as catalyst areas that need change, not stagnation. Commr. Dandekar stated that this would help shape a direction for an area that people could collectively buy into. Commr. Malak asked, in reference to 17.53.020 and 17.53.030, if someone comes in with an idea that is not specifically Community Commercial, can the zoning be changed and how would it change. Director Johnson stated that it would be up to the Planning Commission which would look at the competing standards and apply them in a way to achieve the City's goals. Commr. Malak stated that he would like to see the Planning Commission implement the last sentence in 17.53.030. Commr. Larson stated that this would not involve changing the zoning but would be about finding consistency or interpreting uses and development standards, which is the Attachment 2 PH3 - 49 Draft Planning Commission Minutes September 18, 2014 Page 5 function of the Planning Commission because only the City Council can change zoning. He noted that the zoning code gives some flexibility, and the key is how to use that flexibility in a manner that achieves the development objectives in the new updated General Plan. He noted that Commr. Multari is correct that someone could come in and fit exactly the development standards in the zoning code and ignore the newer policies and objectives without these coming to the Planning Commission until the zoning code is completely updated. Commr. Dandekar stated that policy determines what you want outcomes to be and the job of the Planning Commission and other commissions is to see if objectives have been met. Commr. Riggs agreed with the catalyst statement and the idea of this being a period of transition before the zoning code update, but stated that, if specific requirements are met, he does not see why projects should have to come to the Commission, and he could see more decisions made by the Director, who could choose whether to refer projects to the Commission. He stated that requiring review by the Commission is adding bureaucracy. He added that policy is pretty clear about expectations and, if projects come to the Commission, the temptation will be to increase standards at the whim of the Commission which would create more vague interpretations of policy. Commr. Larson stated that the difficulty is developing criteria to stop a bad project that fails to embody the vision of a Special Focus Zone. Commr. Malak stated that he does not agree with Commr. Riggs because he would not like to see all that authority placed in one person’s hands, and he wants transparency and public input. Commr. Draze stated he would tend to agree with Commr. Riggs if Chapter 8 were much more defined, but there is not enough detail for developers or even staff without a public hearing to get to where the Task Force was heading. He added that, if the zoning code is changed, 17.53.030 can be changed. Commr. Multari stated that there are really just five of the special plan areas that the Commission should review: Foothill/Santa Rosa, Caltrans Site, Madonna Inn Area, Sunset Drive-In Theater/Prado Road, LOVR Creekside. He proposed the following language for 17.53.020: “Where provisions of the underlying zone and the General Plan …conflict, the Land Use Element shall have priority. Development objectives within the plan area shall be…interpreted by the Community Development Director in order to achieve the development objectives in the special focus areas, …except Foothill Blvd./Santa Rosa Area, Caltrans Site, Madonna Inn Area, Sunset Drive-In Theater/Prado Road Area, and 11-LOVR Creekside Area shall be subject to Planning Use permits that development proposals in the areas above) which would require….” Commr. Riggs supported the proposed language. Commr. Dandekar stated that Commr. Multari’s suggestion addresses the critical parcels that the Task Force was concerned about. Attachment 2 PH3 - 50 Draft Planning Commission Minutes September 18, 2014 Page 6 There were no further comments made from the Commission. On motion by Commr. Multari, and seconded by Commr. Draze, to recommend approval of the amendments to General Plan Land Use designations and zoning for Special Focus Areas associated with the Update to the Land Use and Circulation Elements of the General Plan; as well as the new Chapter 17.53 Special Focus Overlay zone section recommended by staff with PC recommended modifications. AYES: Commrs. Dandekar, Draze, Larson, Malak, Multari, and Riggs NOES: None RECUSED: None ABSENT: Commr. Fowler The motion passed on a 6:0 vote. COMMENT AND DISCUSSION: 2. Staff a. Agenda Forecast by Director Johnson overview of the LUCE update at future City Council meetings Deputy Director Davidson to send out an update of Commission meetings. 3. Commission – no comments ADJOURNMENT: The meeting was adjourned at 8:00 p.m. Respectfully submitted by, Diane Clement Recording Secretary Attachment 2 PH3 - 51 1 Land Use Element Policy Input Policy Input Land Use Element Chapter 1 Com- ment # Commenter Chapter Policy # Input Policy Response A2-1 Cal Poly Chapter 1 (LUE) 1.12.3 Rationale for annexation of Cal Poly should be stated. New policy 1.12.3 directs the City to analyze the costs/benefits to annexing Cal Poly. No changes proposed by staff. Policy Input Land Use Element Chapter 2 Com- ment # Commenter Chapter Policy # Input Policy Response P12-4 Kovesdi Chapter 2 (LUE) 2.2.7 Comment recommended adding "protect in kind" or "create in kind habitat off site" Not recommended for addition to this policy which directs residential developments to preserve and incorporate natural features. P12-5 Kovesdi Chapter 2 (LUE) 2.2.9 G(b) Comment recommended adding "healthy and native" to policy that directs new development to maintain mature trees on site. Not recommended for addition to this policy. The policy already has provisions for "feasibility" that would address concerns about restoration projects and non-native trees. P13- 15 Lopes Chapter 2 (LUE) 2.2.9 Concern that criteria defining “compatible development” may encourage increased density and zone changes in neighborhoods. Recommend policy updates as follows: 2.2.9 Compatible Development…..All multifamily development and large group-living facilities shall be compatible with any nearby, lower density development. Compatibility for all development shall be evaluated using the following criteria:...H. Housing Diversity. A mix of housing types, and a range of density within a neighborhood an area is generally desirable (see also Policy 2.1.6) Attachment 3 PH3 - 52 2 Policy Input Land Use Element Chapter 3 Com- ment # Commenter Chapter Policy # Input Policy Response P2-5 Sierra Club Chapter 3 (LUE) 3.5.7.8 Wants additional language to reflect OS areas are acquired and maintained for use of residents and tourism programs are not to include national marketing of City OS areas. The areas impacted by overuse are popular areas for both tourists and residents and should be addressed by specific actions to address each situation. Survey currently underway to develop profile of open space users to better understand demographics. No change to program proposed. P2-6 Sierra Club Chapter 3 (LUE) 3.5.7.1 2 Requests removing specific reference to Economic Development Strategic Plan (EDSP) EDSP went through public process (4 workshops and hearings) and incorporates city policies for development’s responsibility to bear cost of facilities and services required to serve it. Removing specific reference to EDSP in this program will not remove Council direction to implement it. Policy Input Land Use Element Chapter 6 Com- ment # Commenter Chapter Policy # Input Policy Response P2-7 Sierra Club Chapter 6 (LUE) 6.4.5 Request to replace “encourage” with “require” for rainwater percolation from roof- hardscape areas. P2-8 Sierra Club Chapter 6 (LUE) 6.4.6 Request to replace “encourage” with “require” for project designs that minimize drainage concentrations. P2-9 Sierra Club Chapter 6 (LUE) 6.5.1 Request to restore deleted language specifying approaches to flood protection. Not recommended to specify particular approaches that may no longer meet FEMA or Stormwater regulations. Broader policy language to support flood plain standards is appropriate. Attachment 3 PH3 - 53 3 Policy input Land Use Element Chapter 8 Com- ment # Commenter Chapter Policy # Input Policy Response A2-2 Cal Poly Chapter 8 (LUE) 8.3.3.1 3 CalFire /Cal Poly site shows up in Cal Poly Master Plan as designated for Faculty and Staff housing. Update Plan to show this designation. Update policy to state, "The Cal Poly Master Plan currently designates this area for Faculty and Staff housing. The City shall collaborate….." A6-7 SLOCOG Chapter 8 (LUE) 8.3.3.8 Executive summary mentions need to reflect Homeless Center use of Prado/Sunset Drive-in Site but doesn’t mention RTA new facility at this location. Policy 8.3.3.8 includes reference to both Homeless Services center and transportation agency use. Staff recommends retaining Office designation for this portion of the site to ensure LUCE update does not create non-conforming use. P2-10 Sierra Club Chapter 8 (LUE) 8.3.2.6 Delete provision for meeting a portion of open space requirement off-site Task Force generated this concept and it was carried through PC and CC. P16- 13 Mila Vujovich- LaBarre Chapter 8 (LUE) 8.3.2.4 San Luis Ranch should be retained for agriculture. Policy in LUCE provides for development consistent with current policy direction to retain 50% open space/ag. P16- 16 Mila Vujovich- LaBarre Chapter 8 (LUE) 8.3.3.1 Need access for pedestrians and bikes across Santa Rosa This circulation alternative is part of the LUCE but wasn’t explicit in the land use policy direction for this site. Recommend clarifying policy direction: “Redevelopment plans shall include consideration of improving the existing complex intersections of Foothill/Chorro/Broad, the desirability of modifying Boysen at and through the property on the northeast corner of the area, and enhancement of pedestrian, bicycle and transit connections across Foothill and Santa Rosa/Highway 1 and to the campus.” Attachment 3 PH3 - 54 4 Policy Input Land Use Element Chapter 9 Com- ment # Commenter Chapter Policy # Input Policy Response P2-11 Sierra Club Chapter 9 (LUE) 9.3.7D Request to expand policy supporting grey water systems to include a builder incentive program to build new homes with an onsite water recycling system included. In 2009 the state amended the grey water regulations to make it easier to install a “simple” system which uses washing machine water only and doesn’t require a permit to install. A full home recycling grey water system is supposed to be designed to match the output of the house which includes the number of occupants and size of the landscape and it is illegal to store grey water. Therefore, while a house may be plumbed to be grey water-ready, it could not actually have an installed system until all the variables are known. Recommend policy be updated to state, “Utilize plumbing fixtures that conserve or reuse water such as low flow faucets or grey water systems, and encourage new homes to be constructed to be grey water ready.” P5-3 DiGangi Chapter 9 (LUE) No specific policies Add electric vehicle charging stations to residential developments. Add incentives to development that incorporate features that off-set operational energy use. Incorporate requirements for buildings to be solar- ready. Add these as examples to draft programs: “Incentive Program: The City shall consider the feasibility of providing incentives for new and renovated projects that incorporate sustainable design features such as constructing new buildings that are solar ready, or off-setting significant operational energy use through use of solar water heating, photovoltaic systems, geothermal or wind energy systems.” “Building Code Update: The City shall regularly review and update its building code and ordinances to identify revisions to promote energy efficient building design and construction practices, for example by including requirements for electric Attachment 3 PH3 - 55 5 vehicle charging stations for new residential developments.” P5-3 DiGangi Chapter 9 (LUE) 9.3.7 G Add “trees” in addition to building elements to address Solar Shade Act. Public Resources Code contains provisions that restrict height of vegetation on properties adjoining properties with solar collectors. Prior notice is required and local ordinance may modify or opt not to apply PRC code. If Commission is interested in including this concept, staff recommends adding a new program in Chapter 9 that directs the City to explore local conditions to support the Solar Shade Act as reflected in PRC 25980-25986. Attachment 3 PH3 - 56 6 Circulation Element Policy Input Policy Input Circulation Element Chapter 1 Com- ment # Commenter Chapter Policy # Input Policy Response P2-12 Sierra Club Chapter 1 (CE) 1.9 1A Request to expand language in objective. Support updated language for objective 1.9: A. “The City will continue to support the use and development of compressed natural gas and biodiesel fueling stations, EV recharging stations, and other alternative fuel stations in the San Luis Obispo area.” Policy Input Circulation Element Chapter 2 Com- ment # Commenter Chapter Policy # Input Policy Response A2-3 Cal Poly Chapter 2 (CE) 2.1.4 Request to expand language. Support updated language, “The City shall continue to work with Cal Poly, Cuesta College and other…..” P2-13 Sierra Club Chapter 2 (CE) 2.1.3 Request to restore text requiring mandatory trip reduction. Per SB 437 (Lewis), the language was removed because it is inconsistent with current State law (code 40717.9 in Health and Safety regulations). Replacement text emphasizes commuter benefit options instead. Policy Input Circulation Element Chapter 3 Com- ment # Commenter Chapter Policy # Input Policy Response A6- 26 SLOCOG Chapter 3 (CE) 3.0.3 Request to edit language regarding seniors and persons with disabilities. Staff supports. See PH6-6 below for language. Attachment 3 PH3 - 57 7 P2-14 Sierra Club Chapter 3 (CE) 3.0.6 Request to restore bullet point directing frequency of transit service to compare favorably to use of private vehicle. If Commission wishes to retain direction regarding transit service frequency, staff recommends: “The frequency of City transit service will not pose a barrier to this mode choice.” PH6- 6 Mass Transit Committee Chapter 3 (CE) 3.0.3, 3.0.4, 3.1.4 Requests for updated language. Supported by staff: 3.03 The City shall continue to support paratransit service for the elderly and disabled persons provided seniors and persons with disabilities by public and private transportation providers. 3.0.4 Campus Service. The City shall continue to work with Cal Poly to maintain and expand the free fare subsidy program".... 3.1.4 The City shall coordinate with the San Luis Obispo Regional Transit Authority (SLORTA) to evaluate the cost effectiveness of benefits and drawbacks of coordinated and consolidated service. Policy Input Circulation Element Chapter 4 Com- ment # Commenter Chapter Policy # Input Policy Response P15-1 and P15-5 Santa Maria Valley Railroad Chapter 4 (CE) 4.1.6 Concern that bikeways and pedestrian paths in railroad rights of way are not compatible due to security problems and potential to block adjacent properties’ access to be served by rail. No change to policy or program is proposed. Policy Input Circulation Element Chapter 6 Com- ment # Commenter Chapter Policy # Input Policy Response P2-15 Sierra Club Chapter 6 (CE) 6.0.5 Remove text that references “fair share” No change to policy is proposed by staff. “Fair share” has roots in proportional nexus in case law and Attachment 3 PH3 - 58 8 Commission and Council should discuss and provide direction. Policy Input Circulation Element Chapter 9 Com- ment # Commenter Chapter Policy # Input Policy Response P2-16 Sierra Club Chapter 9 (CE) 9.0.1 Request to remove reference to "fair share" and include language "as mitigation for the impacts of development". No change to policy is proposed by staff. “Fair share” has roots in proportional nexus in case law and Commission and Council should discuss and provide direction. P2-17 Sierra Club Chapter 9 (CE) 9.1.6 Request to add reference to “complete streets” model. No change to policy is proposed by staff. This policy addresses appearance of streets and roads. Addition of complete streets model, which is addressing mode share of right-of-way, is covered in policy 6.0.1. Policy Input Circulation Element Chapter 12 Com- ment # Commenter Chapter Policy # Input Policy Response P15-7 Santa Maria Valley Railroad Chapter 12 (CE) 12.1.3 Request to remove policy regarding idling trains. No changes to policy are recommended. Commenter response to GHG emissions but rails to note the noise concerns to surrounding neighborhoods which is main focus of policy. Policy Input Circulation Element Chapter 14 Com- ment # Commenter Chapter Policy # Input Policy Response P2-18 Sierra Club Chapter 14 (CE) New Request to add new policy: 14.0.4 Unbundled parking: The City shall Schools are superior agencies and City cannot set policy for them. General intent of unbundled parking is accomplished through downtown Attachment 3 PH3 - 59 9 introduce unbundled parking, congestion pricing, shared parking, fair price policies, positive transportation demand management (TDM) and the other components of an Intelligent Parking program for schools and government buildings with the goal of creating a Request for Proposal process for full implementation. parking in-lieu districts and in zoning provisions that allow for parking modifications for projects that include car-sharing, employer-paid transit passes, off-peak work hours and/or trip reduction plans. Policy Input Circulation Element Chapter 15 Com- ment # Commenter Chapter Policy # Input Policy Response A6- 28 SLOCOG Chapter 15 (CE) 15.0.5 Request to remove reference to US 101 Aesthetic study Revise D to read, "Actively participating in the development and periodic updates of the Caltrans US 101 Aesthetic Study of San Luis Obispo County. Policy Input Circulation Element Chapter 16 Com- ment # Commenter Chapter Policy # Input Policy Response P15-2 Santa Maria Valley Railroad Chapter 16 (CE) 16.0.2 Request to specifically address freight mobility as a benefit to regional congestion. No change to policy is proposed by staff. Policy 16.0.2 encourages programs that reduce dependence on single occupant vehicles and encourages use of alternative modes without listing them. Rail is an alternative mode. Attachment 3 PH3 - 60 10 P2-20 Sierra Club Chapter 16 (CE) 16.1.2 Request to remove reference to “fair share”. No change to policy is proposed by staff. “Fair share” has roots in proportional nexus in case law and Commission and Council should discuss and provide direction. Attachment 3 PH3 - 61 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Administrative Draft Fiscal Analysis 1 August 2014 ATTACHMENT 4 PH3 - 62 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Page 2 Administrative Draft Fiscal Analysis August 2014 Table of Contents Introduction .................................................................................................................................................. 3 Major Findings .............................................................................................................................................. 3 LUCE Projected Development ........................................................................................................... 5 Discussion of Fiscal Impacts ............................................................................................................... 9 Public Facilities Financing .................................................................................................................. 21 Appendix A: Methodology for the Fiscal Analysis .............................................................. 28 Appendix B: Development Impact Fee Estimates ............................................................... 37 ATTACHMENT 4 PH3 - 63 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Administrative Draft Fiscal Analysis 3 August 2014 Introduction This report evaluates the fiscal impact of proposed land uses in the City of San Luis Obispo Land Use and Circulation Element (LUCE) Update. The report calculates the projected City revenues and costs that would be generated by new development included in the LUCE, as well as new infrastructure and program elements included in the Circulation Element. The first section of the report focuses primarily on the annual operating costs and revenues for the City’s General Fund, while the second section discusses capital improvements, such as street improvements and the new fire station that would also be needed to support planned development. Appendix A provides a detailed description of the methodology used in the analysis while Appendix B provides detailed calculations of development impact fees from LUCE development. The LUCE Background Report Chapter 2.2, Fiscal-Financial, provides a context for this analysis in terms of recent trends in City finances and the City’s policy framework for budgetary actions. In addition, Chapter 2.3, Economic Development, includes a retail market analysis and a discussion of the tourism market in San Luis Obispo that provides a basis for parts of the fiscal analysis in this report. The DEIR also provides a more detailed description of key City services, such as police and fire protection, than is provided here in the fiscal analysis. The General Fund collects all general tax revenues and pays for most of the operating expenses to fund City government. The City budget includes other funds besides the General Fund but these represent monies collected from a variety of revenue sources that are limited to specific uses. For example, the City Enterprise Funds are used to operate the water and wastewater systems as well as City-owned parking facilities and transit services. The revenues used to operate these systems are mainly user charges billed to customers for service. The City has the ability to adjust service charges over time to ensure that the revenues meet operating costs. Therefore, it is less likely that new development would create adverse fiscal impacts on the Enterprise Fund provided the City is able to project changes in systems demands and operating costs. However, with the General Fund, the City has less control over its major tax sources such as the property tax, sales tax and transient occupancy tax, because the tax rates are largely constrained by the state constitution and other regulatory limits and the revenues themselves may decline with changes in economic conditions, as happened during the recent recession. Therefore, it is especially important to analyze how the future land use mix will affect General Fund costs and revenues rather than other portions of the City budget. The fiscal analysis is structured to show the marginal impact of new development included in the LUCE and does not represent a projection of the total City budget at buildout of the General Plan. Other economic and state policy factors may affect the cost of services and the revenues generated by existing land uses in the City, which would change the City’s overall budget picture. Major Findings  The new development associated with the LUCE would generate a net positive fiscal impact of $3.1 million per year for the San Luis Obispo General Fund. This result is driven largely by the amount of commercial and hospitality uses included in the LUCE.  The circulation improvements and transportation programs included in the LUCE, as well as other new facilities such as a fifth fire station, would also benefit existing development in the City. The share of annual operating and maintenance costs allocated to existing development equal about $2.67 million per year, reducing the overall fiscal benefit of the LUCE program to about $452,700 per year.  The costs included in the analysis reflect a higher than current level of City expenditure for facilities maintenance and IT investments, addressing the fact that current expenditure levels have resulted in ATTACHMENT 4 PH3 - 64 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Page 4 Administrative Draft Fiscal Analysis August 2014 deferred maintenance for many City facilities. These higher service standards result in higher costs for LUCE development and lower net revenues. However, despite absorbing these higher maintenance costs, the development would be able to contribute nearly an additional $3.1 million per year to capital improvement plan projects, including payments for debt service related to these projects  One source of capital improvements expenditures for the City is Measure Y sales tax receipts (1/2 cent Essential Services Measure). The LUCE development is projected to generate $2.7 million in Essential Services Measure revenues per year. Measure Y is due to expire in 2014 unless renewed by the voters. If the Measure is not renewed, the City would not receive the projected additional sales tax revenues from LUCE development and related expenditures would need to be reduced accordingly.  In terms of service costs, one significant service impact is the need for a new fire station in the south part of town, which is estimated to cost $3 million to build and equip and $1.8 million per year to operate. Four main projects included in the LUCE would benefit from this facility, including Sunset Drive-in, Avila Ranch and the Airport & Margarita Area Specific Plans. However, some existing residential units as well as a number of businesses located in the southern part of town would also benefit from the new fire station. In the fiscal analysis, the operating costs for the station have been allocated to these projects plus the existing development within the new service area.  Within the LUCE there are three major project sites plus 28 acres of other vacant land that is currently outside the City boundaries and would have to be annexed in order to develop. The City receives a lower share of property tax on annexed property than it does for properties within the historical core of the City (i.e., within the City prior to 1996 when the City/County tax sharing agreement was adopted). However, due to the planned commercial development in the Dalidio/San Luis Ranch site, the Airport Area and the Madonna site on LOVR, these future annexation areas would generate a net positive fiscal impact of $1.8 million per year.  Circulation improvements in the LUCE are estimated to cost $192.2 million, and in addition circulation improvements from the ancillary Bicycle Transportation Plan are estimated to cost $48 million. Some funding is included in the City’s existing Transportation Impact Fee (TIF) program. LUCE development is projected to pay $99 million into the existing TIF, but many of these funds are earmarked for other facilities in the Citywide TIF. Overall there is a gap of at least $40 million between LUCE circulation costs and existing projected TIF revenues, not including the costs in the Bicycle Transportation Plan.  Other estimated facilities costs associated with the LUCE include a share of both new fire and police stations at $2.2 million and $8.1 million, respectively. Also, certain LUCE development would dedicate parkland and others would pay an in-lieu parkland fee, but the City does not have a fee for park development and there is an estimated $17.3 million gap between the estimated cost of park acquisition and development and the fees and park land dedications that would be provided by the LUCE under existing City programs.  Altogether, there is an infrastructure funding gap of at least $71.5 million, and the analysis indicates that new development in the LUCE may be able to absorb some additional fee burden. When the LUCE is adopted, it will be essential for the City to develop a detailed plan for funding critical infrastructure improvements, including a new development impact fee nexus study. ATTACHMENT 4 PH3 - 65 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Administrative Draft Fiscal Analysis 5 August 2014 LUCE Project ed Development The proposed Land Use and Circulation Element includes a number of future development projects and sites. Table 1 summarizes housing unit, population, non-residential square footage, and employment capacity in the Planning Subarea. The table is divided into capacity from alternative sites, specific plans, planned projects, and other vacant land. Under the proposed General Plan, San Luis Obispo has a capacity for 4,904 new residential units and 5,168,908 square feet of non-residential floor area. Alternatives Sites There are 12 active alternatives sites within the Planning Subarea that were identified through the alternatives process as opportunity areas. Units and non-residential square footage are calculated based on proposed general plan designations and input from the City. Some of these sites have existing development that will likely be adapted to facilitate new development. Alternatives sites are anticipated to result in 2,316 new units and 1,900,443 square feet of new non-residential floor area. Specific Plans There are three key specific plans that provide capacity within the Planning Subarea: The Margarita Area Specific Plan (MASP), the Airport Area Specific Plan (AASP), and the Orcutt Area Specific Plan (OASP). After capacity from the Avila Ranch and Broad Street at Tank Farm Road alternatives sites were removed to avoid double counting, the three specific plan areas account for 1,847 units and 3,244,642 square feet of new non- residential floor area. Planned Projects Some capacity is determined by sites with projects approved by the City of San Luis Obispo. Planned projects include developments with approved land use entitlements, preparing for building permits, in plan check, or under construction. There are eight planned and approved projects that are outside the alternatives sites, including three residential and five mixed use developments. Together, these on-going projects would result in an estimated 289 new housing units and 126,000 square feet of non-residential floor area. Other Vacant Land Other vacant land indicates what could realistically be developed on remaining vacant land in San Luis Obispo based on actual constraints and historical development practice. Table 1 shows the breakdown of vacant land by land use designations in 2013, excluding approved projects, vacant land in specific plan areas, and vacant land within alternatives sites. Excluding these areas, the city has 87 acres of vacant land. Services and Manufacturing and Low Density Residential areas have the greatest number of vacant, developable acres. All vacant land potential is within the Planning Subarea, although 28 acres is outside the current City boundary. Based on allowed density, anticipated infrastructure, and development history, vacant land in San Luis Obispo can support an additional 452 units. Most of these units would be in low, medium, and high density residential areas. Based on allowed FAR, anticipated infrastructure, and development history, vacant land in San Luis Obispo can support an additional 230,433 square feet of non-residential development. ATTACHMENT 4 PH3 - 66 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Page 6 Administrative Draft Fiscal Analysis August 2014 Table 1: Total Capacity within Planning Subarea, San Luis Obispo 2014 Acres Typical Density¹ Capacity Resin- dential (Units/ Acre) Non- Resi- dential (FAR) Units² Popula- tion3 Non-Residential Square Footage4 Employ- ment5 Single Family Multi- family Total Office Commer- cial Indust- rial Hotel Park (Acres) Total (includes hotels) ALTERNATIVES SITES⁶ Foothill @ Santa Rosa Area 0 80 80 183 0 -1,814 0 0 - -1,814 -3 Caltrans Site 0 53 53 121 -3,792 -14,265 0 200 3.5 101,943 6 General Hospital Site 9 32 41 94 48,788 0 0 0 - 48,788 163 Broad Street Area 0 589 589 1,349 0 229,068 0 0 - 229,068 416 Sunset Drive-In Site 0 0 0 0 260,706 222,962 0 0 - 483,668 1,274 Dalidio / Madonna Area 320 180 500 1,145 150,000 200,000 0 200 8.3 470,000 968 Pacific Beach Site 0 38 38 87 -94,851 57,499 0 0 - -37,352 -212 Calle Joaquin Auto Sales Area 0 0 0 0 0 128,066 0 120 - 200,066 295 Madonna Site on LOVR 0 115 115 263 16,770 145,000 0 139 - 336,170 392 LOVR Creekside Area 0 159 159 364 0 0 0 0 2.7 0 0 Broad St. @ Tank Farm Rd. Site 0 41 41 94 73,180 62,726 0 0 - 135,906 358 Avila Ranch 405 295 700 1,603 0 25,000 0 0 - 25,000 45 SUBTOTAL 734 1,582 2,316 5,303 450,801 1,054,242 0 659 14.5 1,900,443 3,762 SPECIFIC PLANS7 Margarita Area Specific Plan 741 127 868 1,988 959,017 10,000 0 0 25.9 969,017 3,215 Airport Area Specific Plan⁸ 0 0 0 0 900,000 616,983 747,642 0 - 2,264,625 6,420 Orcutt Area Specific Plan 540 439 979 2,242 0 11,000 0 0 12.0 11,000 20 SUBTOTAL 1,281 566 1,847 4,230 1,859,017 637,983 747,642 0 37.9 3,244,642 9,475 PLANNED AND APPROVED PROJECTS⁹ Chinatown Project 0 32 32 73 0 46,000 0 78 - 92,800 124 Pacific Courtyards 0 12 12 27 10,000 0 0 0 - 10,000 33 Mission Estates 10 0 10 23 0 0 0 0 - 0 0 Four Creeks (Creekston and Laurel Creek) 0 166 166 380 0 0 0 0 - 0 0 Garden Street Terrace 0 8 8 18 0 25,000 0 64 - 63,400 83 ATTACHMENT 4 PH3 - 67 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Administrative Draft Fiscal Analysis Page 7 August 2014 Acres Typical Density¹ Capacity Resin- dential (Units/ Acre) Non- Resi- dential (FAR) Units² Popula- tion3 Non-Residential Square Footage4 Employ- ment5 Single Family Multi- family Total Office Commer- cial Indust- rial Hotel Park (Acres) Total (includes hotels) 313 South Street Apartments 0 43 43 98 0 0 0 0 - 0 0 Marsh Street Commons 0 11 11 25 0 3,000 0 0 - 3,000 5 ICON project (1340 Taft) 0 7 7 16 0 4,000 0 0 - 4,000 7 SUBTOTAL 10 279 289 660 10,000 78,000 - 150 - 126,400 252 OTHER VACANT LAND (BY GENERAL PLAN DESIGNATION)10 Suburban Residential4 4.0 1 4 4 9 - - - - Low Density Residential 53.4 6 320 320 733 - - - - Medium Density Residential 7.1 10 71 71 163 - - - - Medium-High Density Residential 0.4 16 - 6 6 14 - - - - High Density Residential 2.7 19 - 51 51 117 - - - - Neighborhood Commercial5 0.2 0.30 - 2,614 - - 2,614 5 Community Commercial5 3.2 0.30 - 41,818 - - 41,818 76 Tourist Commercial5 1.0 0.35 - 15,246 - - 15,246 28 Office4 1.3 0.35 - 19,820 - - 19,820 36 Services and Manufacturing 13.3 0.25 - 144,837 - - 144,837 193 Public 0.4 0.35 - 6,098 - - 6,098 20 SUBTOTAL 87 395 57 452 1,036 25,918 59,678 144,837 - - 230,433 388 TOTAL CAPACITY 2,420 11,229 2,345,736 1,829,903 892,479 803 52.4 5,166,908 13,877 1 Typical density and FAR is based on a net acre assumption accounting for necessary infrastructure and facilities. To get the typical density, the maximum density was recalculated based on a development percent assumption on what is average for new development. 2 Unit capacity for other vacant land is calculated by multiplying acres and the typical density. 3 Population based on 2010 Census estimate of 2.29 persons per household. 4Non-residential square footage for specific plan area and planned projects is based on assumptions in specific plans and Community Development Project Status Report (December 31, 2012). Non-residential square footage for vacant land is calculated by multiplying acres and the typical FAR. Hotels were assumed to have 600 square feet per room. 5 Employment is estimated using 300 square feet per employee for office uses, 550 square feet per employee for commercial uses, 750 square feet per employee for industrial uses, and 1,150 square feet per employee for hotels/motels. ATTACHMENT 4 PH3 - 68 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Page 8 Administrative Draft Fiscal Analysis August 2014 6Alternatives Sites estimate the net new residential and non-residential development in opportunity areas identified as a part of the alternatives process. Units and non-residential square footage are calculated based on proposed general plan designations and input from the City. Some of these sites have existing development that will likely be adapted to facilitate new development. As a result, some sites have a negative number for net new non-residential square footage, even though new development is anticipated. 7Non-Residential square footage includes land designated neighborhood commercial, services commercial, business park, and manufacturing. 8The Airport Area Specific Plan (AASP) does not include capacity from the Avila Ranch or Broad St. @ Tank Farm Alternatives Sites. These sites are counted in the Alternatives Sites section. Non-residential square footage in the AASP includes 605,293 square feet from underutilized land that is likely to redevelop. Remaining capacity in the AASP based on analysis conducted by the City of San Luis Obispo Planning and GIS staff. 9Does not include projects that fall within the boundaries of the Specific Plan Areas or the Alternatives Sites. Only those projects that provided specific unit/square footage numbers were included. 10Does not include parcels that fall within the boundaries of the Specific Plan Areas, Alternatives Sites, or Planned and Approved Projects. Acreages are taken from the vacant land category in the existing land use inventory. Sources: Community Development Department Project Status Report (December 31, 2012), San Luis Obispo General Plan, Land Use Element, 2010; City of San Luis Obispo, 2014; Matrix, 2014; Mintier Harnish, 2014. ATTACHMENT 4 PH3 - 69 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Administrative Draft Fiscal Analysis Page 9 August 2014 Discussion of Fiscal Impacts Introduction Overall, the new land use development under the LUCE would result in a net positive fiscal impact of $3.1 million per year for the San Luis Obispo General Fund (Table 2). However, other costs associated with the new circulation improvements and transportation programs, as well as added fire protection costs to existing development in the south part of the City would reduce the total net revenues to $452,700 per year (Table 3). The positive fiscal impact is driven largely by a favorable balance of commercial and hospitality uses to residential development. Retail development would create a net positive revenue balance of $6.4 million per year and the added hotel development would increase net revenues by $2.6 million per year. Residential development, on the other hand, would require an estimated $4.0 million more per year in service costs than it would generate in City revenues. Office and industrial development also would have more minor negative fiscal impacts on the City General Fund. Table 2 shows the detailed impacts of LUCE development on City revenue categories and service departments. Most of the property tax is generated by residential development while most of the sales tax is generated by commercial development, although household spending from residential units has been credited to the new single family and multi-family units. The transient occupancy tax is a major source of revenue from the hospitality sector. The Net Revenue shown in Table 2 represents about 15.5 percent of the total projected revenues of nearly $20.0 million. The City has a fiscal policy to maintain a 20 percent reserve and the LUCE land use mix would allow the City to maintain its reserves over time. As discussed in the analysis below, the fiscal analysis uses a higher service standard for infrastructure and facilities maintenance than the City currently is able to budget, addressing the fact that current expenditure levels have resulted in deferred maintenance for many City facilities. These higher service standards result in higher costs for LUCE development and lower net revenues in the bottom line in Table 2. However, despite absorbing these higher maintenance costs, the development would be able to contribute nearly an additional $3.0 million per year to capital improvement plan projects, including payments for debt service related to these projects (shown in Table 2 as Transfers Out). This allocation reflects the current General Fund budget for capital expenditures. In the future, the City Council may choose to allocate these funds differently to augment other service departments as needed. Much of the General Fund contribution to capital expenditures is currently funded by Measure Y sales tax revenues (1/2 cent Essential Services Sales Tax), the renewal of which is due to be voted on in November 2014. The LUCE development is projected to generate nearly $2.7 million per year in Essential Services sales tax revenues. If the measure is not renewed, the City would not gain the revenues shown for the LUCE development and would also likely have to reduce expenditures by a commensurate amount. City Services The following sections discuss the projected impacts to each governmental function funded by the General Fund. General Government. The General Government function includes a number of City Departments that provide management and support services, including the Administration Department, City Attorney, Human Resources, Finance and Information Technology, Public Works Administration, and Building and Fleet Maintenance (City Council costs are not projected to increase as a result of the LUCE). These costs total $10.3 million in the General Fund Budget, but some of the costs would not reasonably be expected to increase as ATTACHMENT 4 PH3 - 70 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Page 10 Administrative Draft Fiscal Analysis August 2014 the City grows. For example, the City would not have two City Managers or two Finance Directors, but rather would hire additional support personnel to meet additional workloads. Therefore, some of the General Government costs have been excluded from the analysis (see Table A-6 in Appendix A). In contrast, the City also estimates that it is not currently spending enough to maintain important infrastructure and systems. In terms of General Government functions, the City estimates it should be allocating an additional $160,000 per year to maintain and expand information technology systems, as well as an additional $867,000 per year for building maintenance.1 These amounts have been added to the General Government expenditures to reflect the service level the City projects for future growth. The adjustments to General Government expenditures results in a total cost basis for the fiscal analysis of $8.8 million, which represents 18.2 percent of the total service cost basis in the fiscal analysis. The General Government service costs are allocated to each land use using this percentage of the other line department costs discussed above. Police Department. In terms of service costs, the largest impact is for additional police officers, at nearly $4.1 million per year. As of 2014, the City has 59 sworn officers, a ratio of about 1.24 officers per 1,000 population. Residential development envisioned in the LUCE will add about 11,200 residents, creating a need for 14 new sworn officers in order to maintain the same per capita ratio. The City currently spends about $101,800 plus $1,500 in equipment for new police officer hires. However, as the police department expands, additional non-sworn support personnel are also needed as well as additional operating and management expenditures. The financial impact of the LUCE on a residential population basis would be about $2.5 million per year. However, the LUCE also includes a substantial increase in commercial and hospitality uses, which have significant fiscal benefits but also require added police protection services. This added service demand is estimated to cost an additional $1.6 million per year. Fire Department. For fire protection, there is a need for a new fire station in the south part of town. The annual cost of operating the fire station is estimated to be $1.8 million, derived from figures in the Fire Master Plan, escalated to 2014 dollars.2 Based on the DEIR analysis, it is anticipated that four new projects would benefit from this facility: Sunset Drive-in, Avila Ranch and the Airport & Margarita Area Specific Plans in addition to certain existing development in the City. The three new projects include 1,568 dwelling units and an estimated 10,754 new jobs when fully built out. The existing developed areas in San Luis Obispo that would also be served by the new fire station include an estimated 2,200 dwelling units and businesses with about 4,000 jobs. The fiscal analysis estimates that approximately $1,121,700 of the operating cost for the station (62 percent of the total $1.8 million) would be due to the new development projects, based on a combination of population, employment and projected assessed value, which is an indicator of the level of fire protection they would require. These projects would cover this cost, and other City service costs, through payment of property taxes and sales taxes, along with other General Fund revenues shown in Table 2. The remaining $678,300 would be a cost to the City to meets its service standards for the existing development in the south part of the City. For LUCE development projects in other parts of the City within adequate response times of current stations, no additional fire protection costs are included in the analysis. However, all projects would generate increased costs for emergency medical response on a per capita basis, which accounts for about two-thirds of 1 IT costs provided by Wayne Padilla, Finance/IT Director; Building maintenance costs provided by Daryl Grigsby, Public Works Director, in a memorandum to the Local Revenue Measure Advisory Committee, January 13, 2014. The stated cost reflects the alternative investment level. 2 This estimate also accounts for projected reductions in PERS costs for new firefighters, based on information provided by Wayne Padilla, Finance/IT Director, August 14, 2014. ATTACHMENT 4 PH3 - 71 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Administrative Draft Fiscal Analysis Page 11 August 2014 the Fire Department Budget. The projected additional cost for fire services from existing stations is estimated at 759,250 per year. Transportation. The LUCE proposes a number of new street and highway improvements, as well as a significant expansion of the City’s Transportation Planning and Engineering program to increase bicycle, pedestrian, and transit mode share. Also the City recently adopted an ancillary document, the Bicycle Transportation Plan, which includes a number of bicycle specific improvements. Over 25 new transportation policies and programs are proposed which include new monitoring programs, new budgeting and prioritization processes, development of new plans such as the downtown pedestrian plan and access management standards, expansion of existing programs such as the Neighborhood Traffic Calming and Traffic Operations Programs, and new Multimodal Service Standards. It’s estimated that the proposed expansion of the City’s Transportation Planning & Engineering program represents an additional 5,000 to 8,000 annual staff hours & approximately $200,000 in annual consultant services depending on the implementation schedule for these projects and programs and the level of the development applicants in a given year. The City currently averages about $15,000 in maintenance costs per mile of roadway, including sidewalks, bike paths, and related storm drain facilities. The LUCE includes approximately 13 miles of new road surfaces, which would increase current maintenance costs about $195,000 on an annual average basis. Also the Bicycle Transportation Plan includes new bike paths, boulevards, and lanes which would increase current maintenance cost by another $1.06 million on an annual average basis. However, the City has determined that current expenditures levels fail to meet City Council goals regarding optimal maintenance and replacement schedules and the City is accumulating a significant deferred maintenance need. Maintenance levels would need to increase between 3 and 5 times current levels to avoid this deferred maintenance.3 At even the lower level, this would increase the LUCE street/storm maintenance costs to about $585,000 per year. The combination of an expanded Transportation Planning & Engineering program and additional street maintenance on new roads and bikeways, adds a total of $2,213,500 to the fiscal costs for the LUCE. In addition, the analysis estimates that the increased use of existing City transportation facilities and programs by the new population and employment would increase City Transportation function costs by another $1,586,600. Leisure, Cultural and Social Services. A number of the LUCE development projects include new parks, adding 52.4 acres to the City’s inventory in aggregate. While this is a benefit to residents of the City, the additional parks will increase maintenance costs for the parks and recreation department. In addition, the new residential population will use existing parks and the increased wear and tear will add maintenance costs for those parks as well. The total impacts to park maintenance cost is estimated at about $578,400 and is allocated to the new residential units in the LUCE. In addition to parks and landscape maintenance, new development associated with the LUCE would increase demand for recreation programs and other City leisure, cultural and social services, including potentially the City-County Library, the Swim Center, Youth and general Community Services. It is estimated that the total cost of such services would increase $1.2 million at full buildout of the LUCE. Portions of these costs would be offset by recreation program fees and general tax revenues generated by the LUCE development. Community Development. The Community Development function for the City includes a wide range of services, from long range planning to development review and entitlements, carried out by the Community Development Department. It also includes economic development, community promotions, tourism and 3 Grigsby, Daryl, Public Works Director, memorandum to the Local Revenue Measure Advisory Committee, January 13, 2014. ATTACHMENT 4 PH3 - 72 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Page 12 Administrative Draft Fiscal Analysis August 2014 natural resource protection through the City Administration Department, neighborhood services and code enforcement through the Building and Safety Division, as well as engineering review and CIP engineering from the Public Works Department. In the fiscal analysis, we have not included the portions of the development review process for which the City charges fees directly to development. Fees for plan review, plan check, building permits and the like are paid during the entitlement and project approval phase but then are not paid by development on an ongoing basis except for occasional remodels or building expansions. Much like the Enterprise Funds, the City has the ability to set fees for entitlement services to cover City costs; however, other community development functions are supported by general tax revenues and are included in the fiscal cost analysis for the LUCE, estimated at $719,170 per year at full buildout. Enterprise Funds. Parking and transit services which are part of the transportation function are funded by separate enterprise funds and are not included in Table 2. Similarly, utilities such as water and sewer service are funded by enterprise funds rather than through general tax revenues in the General Fund. For water, sewer and parking services, user fees and service charges fund 97-99 percent of the costs for these functions. Therefore, as demand for the services increases from LUCE development, the City will receive increased service charge revenues to cover those costs, In addition, the City has the authority to increase service charge rates if necessary to maintain pace with cost escalations. For transit, however, only 20 percent of operating costs are covered by user revenues and 80 percent are covered from subventions and grants that are based on population, ridership and other factors. The LUCE would increase the City’s population by about 25 percent, potentially increasing transit costs by as much as $800,000 if existing system capacity cannot handle the increase. If such cost increases do occur, the City would need to obtain additional grant funds to operate the expanded services. Impacts by LUCE Development Area The fiscal analysis evaluates each development project/area and land use type individually. Table 4 shows the bottom-line fiscal impact of each individual project site or area, grouped by LUCE category. Due to the balance of commercial and residential development, each category of LUCE project has a positive fiscal impact. Several of the projects would involve redeveloping existing non-residential uses and the fiscal impact analysis accounts for the loss of these uses. For example, the site at Foothill and Santa Rosa would demolish an 1,800 sq.ft. commercial building while the Caltrans site would lose 18,000 sq.ft. of office and commercial uses. In addition, the Pacific Beach site would replace 94,951 sq.ft. of office space with $57,499 sq.ft. of retail space plus 38 multi-family units. The analysis assumes the existing uses are functioning as new and shows a negative impact from replacing retail uses but a positive impact from replacing the office uses. In reality the fiscal effect of the existing uses is likely lower due to obsolescence of the existing buildings. In any case, both Caltrans site and the Pacific Beach site have net positive fiscal impacts due to the planned mix of uses in each project. In most cases, projects that have a mix of both residential and commercial uses show a positive fiscal benefit, depending on the amount of retail uses in each case. There are a number of positive attributes associated with mixed use development in terms of creating vibrant neighborhood environments, allowing more pedestrian oriented shopping and entertainment activities and reducing vehicle miles traveled to more centralized commercial centers. The fiscal analysis does not explicitly value these benefits in terms of increased revenues or reduced service costs, but it does make the assumption that commercial spaces in neighborhood locations will be fully patronized by local residents and therefore contribute positively to City revenues, mainly through the sales tax. Some neighborhood sales dollars will likely come from existing ATTACHMENT 4 PH3 - 73 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Administrative Draft Fiscal Analysis Page 13 August 2014 residents and not just residents in the new housing. This would represent shifts in sales away from existing, more centralized retail centers in the City and a more detailed market analysis of each individual project would be needed to calculate the true net effect of this shopping activity. However, the fiscal success of the City is largely dependent on its ability to continue to attract regional retail spending from residents throughout the County and from business and tourist visitors. This may occur both through sales expansion of existing retail and hospitality businesses (increased sales capture) and also through the development of new retail and hotels that attract future county and outside visitor shoppers as the regional population continues to grow. The LUCE includes potential expansion of regional retail centers in the Madonna Rd. and LOVR areas, and therefore would help to maintain a solid tax base for the City as older retail centers transition to new mixed use developments. Tables 5 to 8 show detailed costs and revenues for each LUCE category plus the annexation areas. The Alternatives Sites include a substantial portion of the new commercial development included in the LUCE but less than half of the new housing units. This group of sites provides the largest net revenue gain for the City. Among the Specific Plans, the residential development in the Margarita and Orcutt areas is balanced by the commercial in the Airport Area to create a net positive fiscal impact overall. The other planned and approved projects, as well as the remaining vacant land with development potential, have mixed fiscal impacts depending on the nature of the proposed project, but as a group result in a net positive fiscal benefit for the City. Within the LUCE there are three major project sites plus 28 acres of other vacant land that are currently outside the City boundaries and would have to be annexed in order to develop. These sites include Dalidio/San Luis Ranch, portions of the Airport Area Specific Plan and the Madonna site on LOVR. They are spread among the various LUCE project categories but are extracted for separate analysis in Table 3 and 7. The City receives a lower share of property tax on annexed property than it does for properties within the historical core of the City (i.e., within the City prior to 1996 when the City/County tax sharing agreement was adopted). However, due to the planned commercial development in the Dalidio/San Luis Ranch site, the Airport Area and the Madonna site on LOVR, these future annexation areas would generate a net positive fiscal impact of $1.8 million per year. ATTACHMENT 4 PH3 - 74 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Table 2: Detailed Fiscal Impacts of Total New LUCE Development Total Single Family Multi-Family Office Commercial Industrial Hotel REVENUES Tax Revenues Property Tax $2,310,082 $1,088,465 $713,256 $91,634 $309,921 $22,587 $84,219 Property Tax in lieu of VLF $1,781,322 $795,457 $384,503 $248,092 $246,538 $54,253 $52,479 Sales Tax: General $6,150,569 $512,576 $396,753 $77,364 $4,473,247 $61,871 $628,760 Sales Tax: ½ cent Essential Services Measure $2,666,431 $222,215 $172,002 $33,539 $1,939,268 $26,823 $272,584 Sales Tax: Public Safety $135,399 $11,284 $8,734 $1,703 $98,474 $1,362 $13,842 Transient Occupancy Tax $2,283,266 $0 $0 $0 $0 $0 $2,280,447 Utility Users Tax $1,521,497 $454,799 $466,827 $320,846 $136,523 $48,829 $93,673 Franchise Fees $717,541 $214,484 $220,157 $151,312 $64,384 $23,028 $44,177 Business Tax Certificates $1,011,023 $0 $0 $619,825 $263,740 $94,330 $33,128 Real Property Transfer Tax $52,735 $24,848 $16,282 $2,092 $7,075 $516 $1,923 Service Charges Recreation Fees $389,560 $192,238 $197,322 $0 $0 $0 $0 Other Charges for Services $466,264 $139,374 $143,059 $98,324 $41,837 $14,964 $28,706 Other Revenue Fines and Forfeitures $44,315 $13,247 $13,597 $9,345 $3,976 $1,422 $2,728 Interest Earnings and Rents $65,346 $12,616 $9,554 $5,457 $24,934 $1,153 $11,623 Other Revenues $27,441 $8,109 $8,324 $6,748 $2,872 $1,027 $361 Transfers in Gas Tax/TDA $328,782 $162,246 $166,536 $0 $0 $0 $0 TOTAL REVENUES $19,951,573 $3,851,957 $2,916,906 $1,666,281 $7,612,789 $352,164 $3,548,648 EXPENDITURES General Government $2,549,489 $813,329 $821,112 $454,429 $239,595 $69,596 $151,427 Police $4,188,315 $1,218,254 $1,250,472 $689,699 $548,547 $104,964 $376,379 Fire $1,880,919 $595,480 $534,342 $406,239 $176,733 $64,274 $103,850 Transportation $2,544,883 $760,705 $780,823 $536,653 $228,350 $81,672 $156,680 Leisure, Cultural and Social Services $1,232,271 $551,991 $566,589 $0 $0 $0 $113,692 Park and Landscape Maintenance $578,381 $285,416 $292,964 $0 $0 $0 $0 Community Development Economic Health $178,344 $0 $0 $105,868 $45,047 $16,112 $11,317 Development Review $183,061 $56,942 $58,448 $40,171 $17,093 $6,113 $4,294 Other Community Development $399,943 $124,404 $127,694 $87,763 $37,344 $13,356 $9,381 Transfers Out $3,093,957 $962,390 $987,841 $678,935 $288,892 $103,325 $72,575 TOTAL EXPENDITURES $16,829,562 $5,326,048 $5,366,799 $2,368,925 $1,715,467 $483,965 $981,685 TOTAL BUDGET NET (DEFICIT)/SURPLUS $3,122,011 ($1,567,568) ($2,449,893) ($1,012,593) $6,372,458 ($131,801) $2,566,964 Source: ADE, Inc. Table 3: Detailed Fiscal Impacts of Total New LUCE Development Plus Costs Allocated to Existing Development ATTACHMENT 4 PH3 - 75 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Administrative Draft Fiscal Analysis Page 15 August 2014 Total Single Family Multi-Family Office Commercial Industrial Hotel REVENUES Tax Revenues Property Tax $2,310,082 $1,088,465 $713,256 $91,634 $309,921 $22,587 $84,219 Property Tax in lieu of VLF $1,781,322 $795,457 $384,503 $248,092 $246,538 $54,253 $52,479 Sales Tax: General $6,150,569 $512,576 $396,753 $77,364 $4,473,247 $61,871 $628,760 Sales Tax: ½ cent Essential Services Measure $2,666,431 $222,215 $172,002 $33,539 $1,939,268 $26,823 $272,584 Sales Tax: Public Safety $135,399 $11,284 $8,734 $1,703 $98,474 $1,362 $13,842 Transient Occupancy Tax $2,283,266 $0 $0 $0 $0 $0 $2,280,447 Utility Users Tax $1,521,497 $454,799 $466,827 $320,846 $136,523 $48,829 $93,673 Franchise Fees $717,541 $214,484 $220,157 $151,312 $64,384 $23,028 $44,177 Business Tax Certificates $1,011,023 $0 $0 $619,825 $263,740 $94,330 $33,128 Real Property Transfer Tax $52,735 $24,848 $16,282 $2,092 $7,075 $516 $1,923 Service Charges Recreation Fees $389,560 $192,238 $197,322 $0 $0 $0 $0 Other Charges for Services $466,264 $139,374 $143,059 $98,324 $41,837 $14,964 $28,706 Other Revenue Fines and Forfeitures $44,315 $13,247 $13,597 $9,345 $3,976 $1,422 $2,728 Interest Earnings and Rents $65,346 $12,616 $9,554 $5,457 $24,934 $1,153 $11,623 Other Revenues $27,441 $8,109 $8,324 $6,748 $2,872 $1,027 $361 Transfers in Gas Tax/TDA $328,782 $162,246 $166,536 $0 $0 $0 $0 TOTAL REVENUES $19,951,573 $3,851,957 $2,916,906 $1,666,281 $7,612,789 $352,164 $3,548,648 EXPENDITURES General Government1 $2,953,854 $813,329 $821,112 $454,429 $239,595 $69,596 $151,427 Police $4,188,315 $1,218,254 $1,250,472 $689,699 $548,547 $104,964 $376,379 Fire1 $2,559,250 $595,480 $534,342 $406,239 $176,733 $64,274 $103,850 Transportation1 $4,131,467 $760,705 $780,823 $536,653 $228,350 $81,672 $156,680 Leisure, Cultural and Social Services $1,232,271 $551,991 $566,589 $0 $0 $0 $113,692 Park and Landscape Maintenance $578,381 $285,416 $292,964 $0 $0 $0 $0 Community Development Economic Health $178,344 $0 $0 $105,868 $45,047 $16,112 $11,317 Development Review $183,061 $56,942 $58,448 $40,171 $17,093 $6,113 $4,294 Other Community Development $399,943 $124,404 $127,694 $87,763 $37,344 $13,356 $9,381 Transfers Out $3,093,957 $962,390 $987,841 $678,935 $288,892 $103,325 $72,575 TOTAL EXPENDITURES $19,498,843 $5,326,048 $5,366,799 $2,368,925 $1,715,467 $483,965 $981,685 TOTAL BUDGET NET (DEFICIT)/SURPLUS $452,730 ($1,567,568) ($2,449,893) ($1,012,593) $6,372,458 ($131,801) $2,566,964 1 The total expenditures for General Government, Fire Protection and Transportation include costs allocated to existing development as well as LUCE development. ATTACHMENT 4 PH3 - 76 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Table 4: Summary of Impacts by Area Area Total Single Family Multi-Family Office Commercial Industrial Hotel ALTERNATIVES SITES $4,555,809 ($469,983) ($1,538,826) ($182,496) $4,649,900 $0 $2,094,888 Foothill @ Santa Rosa ($98,887) $0 ($90,617) $0 ($8,271) $0 $0 Caltrans Site $545,236 $0 ($43,761) $1,016 ($65,038) $0 $652,313 General Hospital Site ($42,182) ($1,568) ($27,545) ($13,068) $0 $0 $0 Broad St. Area $483,000 $0 ($542,623) $0 $1,025,623 $0 $0 Sunset Drive In $923,109 $0 $0 ($81,191) $1,004,300 $0 $0 Dalidio/Madonna $954,666 ($207,497) ($196,154) ($87,126) $830,384 $0 $614,352 Pacific Beach Site $256,186 $0 ($31,376) $25,406 $262,155 $0 $0 Calle Joaquin Auto Sales $966,657 $0 $0 $0 $579,369 $0 $386,865 Madonna Site on LOVR $948,649 $0 ($119,457) ($6,905) $633,163 $0 $441,358 LOVR Creekside ($131,282) $0 ($131,282) $0 $0 $0 $0 Broad St. @ Tank Farm Rd. $229,450 $0 ($34,880) ($20,629) $284,959 $0 $0 Avila Ranch ($478,793) ($260,918) ($321,131) $0 $103,256 $0 $0 SPECIFIC PLANS ($2,030,280) ($904,027) ($641,827) ($1,139,335) $766,706 ($111,797) $0 Margarita Area ($1,177,349) ($498,548) ($140,701) ($579,402) $41,302 $0 $0 Airport Area $8,214 $0 $0 ($559,933) $679,944 ($111,797) $0 Orcutt Area ($861,145) ($405,478) ($501,126) $0 $45,460 $0 $0 PLANNED/APPROVED PROJ. $517,762 ($4,280) ($273,895) ($3,732) $345,002 $0 $454,166 Chinatown $421,795 $0 ($31,415) $0 $203,463 $0 $249,471 Pacific Courtyards ($15,513) $0 ($11,780) ($3,732) $0 $0 $0 Mission Estates ($4,280) ($4,280) $0 $0 $0 $0 $0 Four Creeks ($162,963) $0 ($162,963) $0 $0 $0 $0 Garden St. Terrace $307,645 $0 ($7,854) $0 $110,578 $0 $204,694 313 South St Apts. ($42,213) $0 ($42,213) $0 $0 $0 $0 Marsh St. Commons $2,471 $0 ($10,799) $0 $13,269 $0 $0 ICON (1340 Taft) $10,821 $0 ($6,872) $0 $17,692 $0 $0 OTHER VACANT LAND $78,720 ($138,665) ($48,832) ($7,912) $269,580 $4,548 $0 GRAND TOTAL1 $3,122,011 ($1,516,954) ($2,503,380) ($1,333,475) $6,031,188 ($107,249) $2,549,053 ANNEXATION AREAS $1,819,280 ($299,746) ($315,611) ($653,963) $2,143,492 ($111,797) $1,055,709 1Grand Total does not include $2.67 million in costs allocated to existing development. Source: ADE, Inc. ATTACHMENT 4 PH3 - 77 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Administrative Draft Fiscal Analysis Page 17 August 2014 Table 5: Detailed Fiscal Impacts for Alternatives Sites Total Single Family Multi-Family Office Commercial Industrial Hotel REVENUES Tax Revenues Property Tax $1,230,863 $317,140 $498,541 $82,551 $267,066 $0 $65,566 Property Tax in lieu of VLF $756,877 $251,066 $256,372 $51,542 $153,179 $0 $44,717 Sales Tax: General $4,247,481 $155,467 $252,682 $14,868 $3,307,170 $0 $517,294 Sales Tax: ½ cent Essential Services Measure $1,841,393 $67,399 $109,544 $6,446 $1,433,743 $0 $224,260 Sales Tax: Public Safety $93,504 $3,422 $5,563 $327 $72,804 $0 $11,388 Transient Occupancy Tax $1,878,492 $0 $0 $0 $0 $0 $1,876,173 Utility Users Tax $652,634 $137,943 $297,311 $61,660 $78,653 $0 $77,067 Franchise Fees $307,784 $65,054 $140,212 $29,079 $37,093 $0 $36,345 Business Tax Certificates $298,318 $0 $0 $119,117 $151,946 $0 $27,255 Real Property Transfer Tax $28,098 $7,240 $11,381 $1,884 $6,097 $0 $1,497 Service Charges Recreation Fees $183,976 $58,307 $125,670 $0 $0 $0 $0 Other Charges for Services $200,000 $42,273 $91,111 $18,896 $24,103 $0 $23,617 Other Revenue Fines and Forfeitures $19,009 $4,018 $8,660 $1,796 $2,291 $0 $2,245 Interest Earnings and Rents $39,119 $3,815 $6,271 $1,280 $18,191 $0 $9,555 Other Revenues $11,009 $2,460 $5,301 $1,297 $1,654 $0 $297 Transfers in Gas Tax/TDA $155,273 $49,210 $106,063 $0 $0 $0 $0 TOTAL REVENUES $11,943,832 $1,164,815 $1,914,682 $390,743 $5,553,990 $0 $2,917,276 EXPENDITURES General Government $1,119,202 $247,653 $523,167 $86,839 $136,959 $0 $124,583 Police $1,924,128 $369,503 $796,396 $132,546 $316,028 $0 $309,655 Fire $784,115 $186,023 $341,546 $75,312 $95,795 $0 $85,440 Transportation $1,091,608 $230,726 $497,288 $103,133 $131,557 $0 $128,904 Leisure, Cultural and Social Services $621,805 $167,422 $360,847 $0 $0 $0 $93,537 Park and Landscape Maintenance $273,150 $86,568 $186,582 $0 $0 $0 $0 Community Development Economic Health $55,609 $0 $0 $20,346 $25,953 $0 $9,311 Development Review $75,595 $17,271 $37,224 $7,720 $9,848 $0 $3,533 Other Community Development $165,157 $37,732 $81,325 $16,866 $21,515 $0 $7,718 Transfers Out $1,277,653 $291,898 $629,132 $130,477 $166,436 $0 $59,709 TOTAL EXPENDITURES $7,388,023 $1,634,798 $3,453,507 $573,239 $904,090 $0 $822,388 TOTAL BUDGET NET (DEFICIT)/SURPLUS $4,555,809 ($469,983) ($1,538,826) ($182,496) $4,649,900 $0 $2,094,888 Source: ADE, Inc. ATTACHMENT 4 PH3 - 78 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Table 6: Detailed Fiscal Impacts for Specific Plan Areas Total Single Family Multi-Family Office Commercial Industrial Hotel REVENUES Tax Revenues Property Tax $606,038 $505,201 $100,838 $0 $0 $0 $0 Property Tax in lieu of VLF $798,420 $404,527 $80,743 $192,770 $75,526 $44,854 $0 Sales Tax: General $1,209,051 $271,326 $90,403 $61,311 $734,180 $51,830 $0 Sales Tax: ½ cent Essential Services Measure $524,155 $117,627 $39,192 $26,580 $318,286 $22,470 $0 Sales Tax: Public Safety $26,616 $5,973 $1,990 $1,350 $16,162 $1,141 $0 Transient Occupancy Tax $0 $0 $0 $0 $0 $0 $0 Utility Users Tax $689,889 $240,743 $106,370 $254,273 $47,598 $40,905 $0 Franchise Fees $325,353 $113,535 $50,164 $119,916 $22,447 $19,291 $0 Business Tax Certificates $662,189 $0 $0 $491,217 $91,951 $79,021 $0 Real Property Transfer Tax $13,835 $11,533 $2,302 $0 $0 $0 $0 Service Charges Recreation Fees $146,720 $101,759 $44,961 $0 $0 $0 $0 Other Charges for Services $211,417 $73,776 $32,597 $77,922 $14,586 $12,535 $0 Other Revenue Fines and Forfeitures $20,094 $7,012 $3,098 $7,406 $1,386 $1,191 $0 Interest Earnings and Rents $17,649 $6,385 $1,947 $4,068 $4,348 $901 $0 Other Revenues $13,399 $4,293 $1,897 $5,348 $1,001 $860 $0 Transfers in Gas Tax/TDA $123,830 $85,883 $37,947 $0 $0 $0 $0 TOTAL REVENUES $5,388,655 $1,949,572 $594,451 $1,242,162 $1,327,471 $274,999 $0 EXPENDITURES General Government $1,123,885 $432,288 $187,282 $360,770 $84,950 $58,595 $0 Police $1,755,569 $644,869 $284,930 $546,593 $191,247 $87,929 $0 Fire $898,386 $325,075 $122,790 $325,480 $69,551 $55,489 $0 Transportation $1,153,921 $402,671 $177,917 $425,302 $79,613 $68,418 $0 Leisure, Cultural and Social Services $421,292 $292,190 $129,102 $0 $0 $0 $0 Park and Landscape Maintenance $217,836 $151,082 $66,754 $0 $0 $0 $0 Community Development Economic Health $113,104 $0 $0 $83,901 $15,705 $13,497 $0 Development Review $86,376 $30,142 $13,318 $31,836 $5,959 $5,121 $0 Other Community Development $188,710 $65,852 $29,096 $69,553 $13,020 $11,189 $0 Transfers Out $1,459,857 $509,430 $225,088 $538,062 $100,720 $86,557 $0 TOTAL EXPENDITURES $7,418,935 $2,853,599 $1,236,278 $2,381,497 $560,765 $386,796 $0 TOTAL BUDGET NET (DEFICIT)/SURPLUS ($2,030,280) ($904,027) ($641,827) ($1,139,335) $766,706 ($111,797) $0 Source: ADE, Inc. ATTACHMENT 4 PH3 - 79 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Administrative Draft Fiscal Analysis Page 19 August 2014 Table 7: Detailed Fiscal Impacts for Planned/Approved Projects and Other Vacant Land Total Single Family Multi-Family Office Commercial Industrial Hotel REVENUES Tax Revenues Property Tax $473,181 $266,124 $113,878 $9,083 $42,855 $22,587 $18,653 Property Tax in lieu of VLF $226,025 $139,863 $47,387 $3,780 $17,833 $9,399 $7,762 Sales Tax: General $694,038 $85,782 $53,667 $1,185 $431,898 $10,041 $111,466 Sales Tax: ½ cent Essential Services Measure $300,883 $37,189 $23,266 $514 $187,239 $4,353 $48,323 Sales Tax: Public Safety $15,279 $1,888 $1,181 $26 $9,508 $221 $2,454 Transient Occupancy Tax $404,774 $0 $0 $0 $0 $0 $404,274 Utility Users Tax $178,974 $76,113 $63,146 $4,913 $10,272 $7,924 $16,606 Franchise Fees $84,404 $35,895 $29,780 $2,317 $4,844 $3,737 $7,832 Business Tax Certificates $50,515 $0 $0 $9,491 $19,843 $15,308 $5,873 Real Property Transfer Tax $10,802 $6,075 $2,600 $207 $978 $516 $426 Service Charges Recreation Fees $58,863 $32,172 $26,691 $0 $0 $0 $0 Other Charges for Services $54,847 $23,325 $19,351 $1,506 $3,148 $2,428 $5,089 Other Revenue Fines and Forfeitures $5,213 $2,217 $1,839 $143 $299 $231 $484 Interest Earnings and Rents $8,578 $2,416 $1,336 $109 $2,395 $253 $2,068 Other Revenues $3,033 $1,357 $1,126 $103 $216 $167 $64 Transfers in Gas Tax/TDA $49,679 $27,153 $22,527 $0 $0 $0 $0 TOTAL REVENUES $2,619,087 $737,570 $407,773 $33,376 $731,328 $77,165 $631,372 EXPENDITURES General Government $306,402 $133,388 $110,663 $6,820 $17,686 $11,001 $26,845 Police $508,618 $203,881 $169,146 $10,561 $41,271 $17,034 $66,724 Fire $198,417 $84,382 $70,006 $5,447 $11,388 $8,785 $18,410 Transportation $299,355 $127,308 $105,619 $8,217 $17,181 $13,254 $27,776 Leisure, Cultural and Social Services $189,174 $92,379 $76,640 $0 $0 $0 $20,155 Park and Landscape Maintenance $87,394 $47,766 $39,628 $0 $0 $0 $0 Community Development Economic Health $9,631 $0 $0 $1,621 $3,389 $2,615 $2,006 Development Review $21,090 $9,530 $7,906 $615 $1,286 $992 $761 Other Community Development $46,077 $20,820 $17,273 $1,344 $2,810 $2,168 $1,663 Transfers Out $356,448 $161,061 $133,621 $10,396 $21,736 $16,768 $12,866 TOTAL EXPENDITURES $2,022,605 $880,514 $730,501 $45,020 $116,746 $72,617 $177,207 TOTAL BUDGET NET (DEFICIT)/SURPLUS $596,482 ($142,944) ($322,727) ($11,644) $614,582 $4,548 $454,166 Source: ADE, Inc. ATTACHMENT 4 PH3 - 80 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Table 8: Detailed Fiscal Impacts for Annexation Areas Total Single Family Multi-Family Office Commercial Industrial Hotel REVENUES Tax Revenues Property Tax $306,945 $202,583 $61,260 $2,544 $27,906 $0 $12,652 Property Tax in lieu of VLF $501,454 $162,213 $49,052 $100,242 $122,393 $44,854 $22,699 Sales Tax: General $2,254,169 $103,362 $47,118 $35,183 $1,750,572 $51,830 $266,104 Sales Tax: ½ cent Essential Services Measure $977,241 $44,810 $20,427 $15,253 $758,918 $22,470 $115,363 Sales Tax: Public Safety $49,623 $2,275 $1,037 $775 $38,537 $1,141 $5,858 Transient Occupancy Tax $966,326 $0 $0 $0 $0 $0 $965,133 Utility Users Tax $445,382 $91,712 $55,440 $145,911 $71,770 $40,905 $39,645 Franchise Fees $210,043 $43,251 $26,146 $68,812 $33,847 $19,291 $18,696 Business Tax Certificates $513,568 $0 $0 $281,878 $138,649 $79,021 $14,021 Real Property Transfer Tax $7,007 $4,625 $1,398 $58 $637 $0 $289 Service Charges Recreation Fees $62,199 $38,765 $23,434 $0 $0 $0 $0 Other Charges for Services $136,488 $28,105 $16,990 $44,715 $21,994 $12,535 $12,149 Other Revenue Fines and Forfeitures $12,972 $2,671 $1,615 $4,250 $2,090 $1,191 $1,155 Interest Earnings and Rents $21,373 $2,493 $1,067 $2,309 $9,756 $901 $4,843 Other Revenues $8,215 $1,635 $989 $3,069 $1,510 $860 $153 Transfers in Gas Tax/TDA $52,495 $32,717 $19,778 $0 $0 $0 $0 TOTAL REVENUES $6,525,501 $761,219 $325,751 $704,997 $2,978,579 $274,999 $1,478,759 EXPENDITURES General Government $712,939 $160,724 $97,159 $205,867 $126,506 $58,595 $64,087 Police $1,243,418 $245,664 $148,506 $313,655 $288,372 $87,929 $159,292 Fire $538,874 $101,675 $61,463 $180,300 $95,995 $55,489 $43,951 Transportation $744,954 $153,398 $92,731 $244,054 $120,044 $68,418 $66,310 Leisure, Cultural and Social Services $226,715 $111,311 $67,288 $0 $0 $0 $48,117 Park and Landscape Maintenance $92,347 $57,555 $34,792 $0 $0 $0 $0 Community Development Economic Health $90,113 $0 $0 $48,145 $23,682 $13,497 $4,789 Development Review $52,617 $11,483 $6,941 $18,268 $8,986 $5,121 $1,817 Other Community Development $114,954 $25,086 $15,165 $39,912 $19,632 $11,189 $3,970 Transfers Out $889,287 $194,069 $117,316 $308,759 $151,871 $86,557 $30,715 TOTAL EXPENDITURES $4,706,220 $1,060,965 $641,362 $1,358,960 $835,087 $386,796 $423,050 TOTAL BUDGET NET (DEFICIT)/SURPLUS $1,819,280 ($299,746) ($315,611) ($653,963) $2,143,492 ($111,797) $1,055,709 Source: ADE, Inc. ATTACHMENT 4 PH3 - 81 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Administrative Draft Fiscal Analysis Page 21 August 2014 Public Facilities Financing The LUCE includes a number of circulation improvements and would require expansion of other City facilities to accommodate planned growth. This section addresses options to finance the construction of these facilities, which include road, bikeways and highway improvements, a new fire station, expanded police facilities, new parks and water and sewer facility expansions. Facilities Costs Transportation. The City has a Transportation Impact Fee (TIF) program, which was updated most recently in 2006. The existing TIF includes $51.5 million ($2006) in improvements plus $24.6 million in financing costs for a total of $76.1 million. Major projects in the existing citywide TIF include the Prado Rd./Hwy 101 interchange, the Orcutt Rd./UPRR Grade separation and the Hwy 101/LOVR interchange improvements among others. In addition, the major specific plan areas included in the LUCE have project specific transportation improvement obligations that are funded through separate impact fees or developer exactions. Margarita Area Specific Plan (in addition to a share of the Prado Rd. Interchange) Prado Road Extension - $18,967,700 Prado & Higuera Intersection - $1,600,000 Orcutt Area Specific Plan (OASP Share): Total equals $4.2 million, selected projects include: Orcutt Road/Tank Farm Road - $927,978 Broad Street/South St-Santa Barbara Road - $381,000 Broad Street/Tank Farm Road - $222,404 Orcutt Rd/Johnson Avenue - $300,004 Orcutt Road Widening - $310,685 Bridges - $1,610,000 Airport Area Specific Plan (AASP Share): Total equals $19.3 million, selected projects include: Tank Farm Rd./Higuera Intersection Improvements - $1,310,000 Tank Farm Rd. Widening - $5,641,557 Prado Rd./Higuera Intersection Improvements - $1,640,000 Table 8 lists the some of the major circulation improvements included in the LUCE, with planning level cost estimates and notes regarding additional analysis needed in some case to further define the projects. In addition to these projects, the Bicycle Transportation Plan adopted in 2013 includes an estimated $48 million in facilities costs. The Prado Rd. interchange is partially included in the TIF ($6,587,000), with a total cost in 2006 dollars of $22 million plus $9.3 million in bond financing costs. Part of the Prado Interchange is also contained in the MASP ATTACHMENT 4 PH3 - 82 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Page 22 Administrative Draft Fiscal Analysis August 2014 financing program. A full project funding plan for the remainder of costs for the interchange will be needed as major projects move forward – such as the San Luis Ranch project. The current cost estimate is a minimum of $29 million or more, due to higher construction and right of way (ROW) acquisition costs. This project has been tied in part to the development of the Dalidio project and also benefits the Margarita Area Specific Plan, both of which have been assigned specific funding responsibility for the Prado Rd. Interchange. The Citywide TIF includes 29.9 percent of the cost of this project, plus financing costs. Table 8: LUCE Circulation Projects Projects Cost ($mil) Notes Prado Road Interchange $29.0 Included partially in existing TIF, needs full funding plan. Orcutt Overpass $26.0 Partially included in TIF/PUC funding potential Tank Farm to Buckley Connector $6.7 Will be built by development as they occur. Victoria Connection $2.5 Would require new localized fee Broad St. Consolidated Access $1.7 Would require new localized fee Marsh/Higuera 2-way $3.5 Not in TIF. Potential General Fund Project HWY 1/Hwy 101 (Santa Rosa) & Broad St. Ramp Closures $43.0 Not in TIF. Statewide/Regional Project Boysen & Santa Rosa $4.0 Not in TIF, Statewide/Regional Project DT Transit Center NA Mission Plaza Expansion $3.5 Grants/General Fund (Not transportation) Projects to Include in New/Expanded Citywide TIF Bishop Extension $29.0 Requires further study/ Previously excluded from TIF LOVR By-pass $15.0 Explore options with property redevelopment Bianchi/Pismo/Higuera Realignment $2.7 Explore options with property redevelopment Madonna/Higuera Realignment $7.5 Explore options with property redevelopment Chorro & Broad Realignment $8.8 Explore options with property redevelopment Subtotal $63.0 GRAND TOTAL $192.2 Source: Kittleson & Associates, using the planning level costing procedure developed and approved by Caltrans as part of the SLOCOG US 101 Mobility Master Plan. Not for Programming Purposes. The Orcutt Overpass and the Bishop Extension were also included in the 2006 TIF analysis. It is anticipated that 80 percent of the Orcutt Overpass would be funded from grants and 65 percent of the Bishop St. Extension would be funded by other sources. It is estimated that LUCE development would generate $97.6 million under the existing TIF fee structure (see Appendix Table B-1). However, the lower portion of Table 8 indicates that as much as $63 million in additional projects may need to be included in the TIF, or other financing sources found, in order to fully implement the LUCE Circulation Plan. The City has yet to determine how best to fund all projects necessary to serve new development and will be conducting a fee study once the LUCE project is complete to determine how best to fund needed infrastructure projects. The City has already begun considering how to complete this impact fee update and a number of recommendations have been developed, which are presented below at the conclusion of this section of the Fiscal Report, that are based on these early discussions. It is critical once the LUCE is approved, ATTACHMENT 4 PH3 - 83 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Administrative Draft Fiscal Analysis Page 23 August 2014 the City that the City move forward with the updated financing program in order to implement the needed transportation improvements. Police. The current police station is at capacity and the City has identified $42.5 million in the CIP as the potential cost to build a new police station. The LUCE development would add the need for 14 sworn officers to the existing complement of 59 sworn officers. If the City builds a single new expanded police station to serve the entire City, rather than a police substation to serve the expansion areas, the LUCE development would generate a service burden equal to about 19 percent of this facility, or $8.1 million. Fire. The City has budgeted $3.5 million for the new Station 5 plus a pumper truck, not including land cost for the Station. Based on the analysis of operating cost impacts in the previous section of the fiscal analysis, the LUCE development would represent 62 percent of the service area for the new station. Pending a formal nexus study for this facility, we estimate the LUCE share of the fire station cost at $2.2 million, plus a similar share of the eventual land cost for the facility. Water and Wastewater. The City updated its water and wastewater master plans in 2013 and adopted new impact fees to fund water supply and system capacity expansions. The cost allocations between future and existing development are shown in Table 9. LUCE development would be expected to fund the Future Development components of these costs through payment of development impact fees. It should be noted that Cal Poly has an MOU with the City for capacity in both the water and wastewater systems and has made payments to the City to maintain its capacity allocations. Table 9: Water and Wastewater Facilities Costs ($millions) Projects Cost Responsibility Existing Development Future Development Total Water Supply $98.2 $63.2 $161.4 Water Facilities $45.2 $11.4 $56.7 Total Water $143.4 $74.6 $218.1 Water Reclamation Facility $100.4 $25.8 $126.2 Catchment Areas Margarita $0.5 $0.5 $1.0 Calle Joaquin $1.1 $0.4 $1.5 Silver City $0.7 $0.3 $1.0 Laguna $2.4 $0.7 $3.1 Tank Farm $8.0 $11.1 $19.1 Subtotal $12.8 $12.9 $25.7 Total Wastewater $113.2 $38.7 $151.9 Source: City of San Luis Obispo Utilities Department, 2013 Water and Wastewater Development Impact Fees. Parks. The City has a park standard of 10 acres per 1,000 population, which would equate to 113.4 acres for the LUCE development. Several of the projects in the LUCE are planned to provide park land within the development. The Caltrans site and the MASP would provide more park land that is warranted by their own population, while the Dalidio and LOVR Creekside projects would meet only part of their own park needs. The ATTACHMENT 4 PH3 - 84 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Page 24 Administrative Draft Fiscal Analysis August 2014 Orcutt area (OASP) would meet its own parkland requirements through a combination of active and passive park space plus anticipated joint use of a new elementary school planned for the area.4 In order to meet the standard for park space, the City would need to obtain another 49.2 acres. If this land were to be purchased at a cost of $300,000 per acre, the total cost would be $14.8 million. Development cost are estimated at about $235,000 per acre, based on similar costs for the MASP.5 This cost would potentially apply to 91 acres of new parkland outside the OASP, for a total development cost of $21.4 million. Thus, the combined cost of acquisition and development of parks for the LUCE would be $36.2 million. Financing Sources The City relies on a variety of funding sources for capital improvements, including development impact fees, utility and other enterprise user charges, state and federal grants, regional transportation funds, debt financing and general fund revenues. In general, though, the City expects new development to pay for facilities it needs through development impact fees or direct developer exactions. Development Impact Fees. ADE estimates that the LUCE development would pay about $279 million in existing development impact fees to the City of San Luis Obispo (Table 10 and Appendix B). For water, wastewater, affordable housing and public art, these fees appear to cover the identified impacts.6 For affordable housing and public art, it is assumed the level of impact is defined by the fees paid. There are a number of ways for developers to comply with the inclusionary housing ordinance without necessarily paying a fee. The analysis in Table 10 assumes no residential developers will pay a fee while all non-residential developers will pay the fee. In reality, this may be different for both types of developers, particularly for smaller residential subdivisions or for mixed use projects. For transportation and parks, the fees do not cover the full cost of LUCE improvements. In addition, additional facilities costs have been identified for police and fire facilities for which the City does not have development impact fees. Table 10: Estimated Existing Development Impact Fees to be Paid by LUCE Development and Corresponding Facilities Costs ($millions) Land Use Trans- portation Water Waste- water Parks/ Open Space Affordable Housing [a] Public Art Total Single Family $22.8 $26.1 $14.7 $11.2 $74.8 Multi-Family $14.1 $18.7 $10.7 $7.1 $50.7 Office $37.7 $7.6 $4.6 $0.2 $17.9 $1.7 $69.9 Retail $20.0 $8.3 $4.5 $0.3 $20.7 $2.2 $56.4 Industrial $2.6 $3.5 $2.2 $0.4 $3.8 $0.4 $13.0 Hotels $2.1 $5.2 $2.2 $4.0 $0.4 $14.0 TOTAL $99.3 $69.5 $39.0 $19.3 $46.4 $4.8 $279.0 Facilities Costs $139.1 $74.6 $38.7 $36.6 $46.4 $4.8 $340.2 Source: ADE and City staff, based on City fee schedules. See Appendix B for additional detail. Transportation Facilities costs include only existing TIF projects plus $63 million in LUCE project that may be included in a future TIF update. 4 Walter Kieser, Economic and Planning Systems, Memorandum to Michael Codron and Lee Johnson regarding Review of City’s Current Development Impact Fee Programs, January 6, 2014, pp. 27-28. 5 Kieser, ibid. 6 For the water facilities costs, the minor discrepancies from the projected fee revenues are likely due to incidental variations in fee revenue estimates. ATTACHMENT 4 PH3 - 85 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Administrative Draft Fiscal Analysis Page 25 August 2014 The City has recently reviewed its development impact fee program and considered other infrastructure financing mechanisms that might be available. Considerations with impact fees include not only their ability to fund needed infrastructure but also their effect on the feasibility of development in the City. This latter concern, expressed in the City’s Economic Development Strategic Plan, has prompted closer consideration of the City’s impact fee program and its potential effects on commercial and job generating land uses. One set of guidelines suggests that impact fees should not exceed 15 percent of the value of residential development or 10 percent of the value of non-residential development.7 Table 11 provides a measure of the City’s impact fees as calculated in aggregate for the LUCE land use categories. The first column shows the impact fees calculated in Table 10, followed by the estimated market value from the fiscal analysis. The estimated fees range from 5.0 percent of value for single family development to 15.3 percent for office development. It is clear that the fees for non-residential development exceed the optimal thresholds shown in the next column. However, the EPS analysis indicates that this feasibility issue is not a citywide concern but rather is focused in the special fee areas, primarily for the TIF, such as the MASP, the LOVR area and the triple fee zone. In addition, for non-residential development 5 percent of value is included for the inclusionary housing program. Retail projects in mixed use developments that meet the affordable housing requirements directly rather than through the fee, would see their total fee burden fall below the 10 percent threshold. Moreover, the thresholds themselves are guidelines and actual feasibility levels for specific projects may be different. The Public Facilities Financing Plan for the Airport Area Specific Plan shows comprehensive cost burdens ranging from 10.1 percent for business park uses to 11.2 percent for service commercial and 16.1 percent for manufacturing. The plan also notes that these burdens could be reduced through the use of Community Facilities District Financing. Table 11: LUCE Impact Fee Funding Capacity Land Use Calculated Impact Fees ($mil.) [b] Market Value ($mil.) [a] Impact Fees as Percent of Value Optimal Impact Fee Burden Ratios Impact Fee Thresholds Based on Optimal Burden Ratios ($mil.) Potential Additional Gross Fee Capacity Single Family $74.8 $1,484.4 5.0% 15.0% $222.7 $147.8 Multi-Family $50.7 $754.1 6.7% 15.0% $113.1 $62.4 Office $70.3 $460.6 15.3% 10.0% $46.1 ($24.3) Retail $56.2 $457.7 12.3% 10.0% $45.8 ($10.4) Industrial $13.0 $120.5 10.8% 10.0% $12.0 ($1.0) Hotels $14.0 $98.5 14.2% 10.0% $9.8 ($4.1) TOTAL $279.1 $3,375.8 8.3% 13.3% $449.5 $170.4 Source: ADE. Totals may not add due to rounding. [a] ADE projections of initial assessed value. [b] From Table 10. Does not include school fees. However, in general, Table 11 indicates that residential uses could probably absorb higher impact fees but non-residential uses have a lower capacity for additional fee burdens. Through a nexus analysis for the additional LUCE circulation improvements, the City could determine how much of the estimated $40 million shortfall in the TIF could be ascribed to new residential development. In addition, other impact fees could be 7 Walter Kieser, Economic and Planning Systems, Infrastructure Financing Analysis Session #3, presentation to the San Luis Obispo City Council, March 18, 2014. Slides 9-11. ATTACHMENT 4 PH3 - 86 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Page 26 Administrative Draft Fiscal Analysis August 2014 developed to help fund the police and fire facilities as well as the park development costs identified above. The estimated shortfall in fees for all LUCE facilities is about $71.5 million, not including bikeway facilities that may be funded with impact fees. In its March 2014 workshop on Infrastructure Financing related to the Economic Development Strategic Plan, the City reviewed a number of findings from the analysis of the existing development impact fee program. 1. Incremental evolution in the City’s existing development impact fee programs have resulted in a complex system of base fees, sub area fees, and geographic fee variation that warrants re- consideration in the next fee update process. 2. There are geographic “overlaps” in the City’s fees that cause significant difference in fee levels in various parts of the City. 3. At the Citywide level, aggregate fee levels are consistent with fees levied by other cities, though some specific fees appear to be high by industry standards. 4. There is an inconsistency between land use categories used to compute fees between fee programs. 5. Fees do not contain a cost component for administration and updating. 6. The fees are currently escalated using the Consumer Price Index (CPI), but the Engineering New Record (ENR) may be a more appropriate index to track changes in construction costs. 7. The City does not charge fee for all municipal infrastructure categories, though this may be appropriately considered in the context of other concerns about the overall fee program. 8. The various fee programs should be integrated into the City’s overall capital Improvement Plan (CIP) Addressing these concerns would help the City close the gap in funding for LUCE related facilities costs. Other Funding Sources and Financing Mechanisms Under the current development impact fee program, new development would not pay for all of the infrastructure and facilities needed to support implementation of the LUCE. Part of the issue is that City does not have development impact for all the types of facilities that are needed, but part of the issue is that some of the facilities are needed to correct existing service deficiencies, such as the fire station in the south part of town. Similarly, the City may not be able to simply expand the police station to accommodate future growth, but would need to build a new facility, which could only partially be funded by an impact fee if it were adopted. The City may be able to secure other funding sources for certain costs and would have the option of establishing other kinds of financing mechanisms besides impact fees to facilitate private development paying a greater share of the costs. For example, some of the transportation costs may be funded with regional transportation funds or state and federal grants. Several of the LUCE improvements are under consideration in the US 101 Mobility Study underway by SLOCOG and may eventually qualify for some regional funding. A number of the facilities may qualify for other state or federal grant funding. The City can also using bond financing to acquire the capital needed to build facilities, which can then be paid off over a longer period of time. The City has used this approach for utility infrastructure projects and anticipates that some of the major transportation projects will need bond financing in order to be completed. This approach makes funding large projects more manageable by reducing initial cash requirements, but it ATTACHMENT 4 PH3 - 87 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Administrative Draft Fiscal Analysis Page 27 August 2014 does increase the overall cost of the project by adding financing costs to the actual construction cost of the facilities. In addition, the City must have a revenue source, such as utility service charges, to service the debt or use General Fund revenues for this purpose. The City may also consider land based financing to facilitate developers and land owners paying a greater share of the cost of new facilities. There are a number of types of land based financing mechanisms including Community Facilities Districts and other forms of assessment districts. Such financing mechanisms also provide the opportunity to use bond financing, which not only allows the needed facilities to be built in a timely manner but also can reduce cash requirements for new development and improve the feasibility of desired economic development projects. Land based financing programs can be used within defined development areas, such as specific plans, with landowner/developer approval, or they can be set up on a citywide basis with voter approval. However, they are best used as part of a comprehensive capital improvements program strategy that includes a variety of funding source options. ATTACHMENT 4 PH3 - 88 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Page 28 Administrative Draft Fiscal Analysis August 2014 Appendix A: Methodology for the Fiscal Analysis The analysis addresses the impact of each type of land use on the City General Fund, both in terms of annual revenues generated and the demand for increased public services. The present report uses the current Fiscal Year 2013-2014 City budget as a basis for the cost of revenue analysis, which is updated from the Background Report Chapter 2.2. General Fund Budget The City’s General Fund Budget for Fiscal Year (FY) 2013-2014 includes $60.8 million in revenue and about $65.5 million in current expenditures (Table A-1). The budget anticipates additional expense reductions of about $914,000 based on actual payouts of salaries and benefits. The additional net costs of $3.6 million are covered through prior year encumbrances and reimbursements from other funds. The general sales tax is the single largest revenue source, at $15.4 million. The City voters have also approved an additional sales tax measure called Measure Y, which supplements the general sales tax with another 50% of local sales tax revenues. Measure Y was approved in 2006 but will need to be re-approved by the voters by 2014. State Proposition 174 created the Public Safety sales tax, which is allocated to local jurisdictions by the state and is projected to yield $338,900 for San Luis Obispo in the current year. The general property tax is the second largest revenue source, at about $8.8 million per year. The City’s total assessed value is $6.3 billion and the base property tax rate of one percent produces a total tax from properties within the City of $63.3 million. However, the City receives only about 14 percent of this total and the remainder is distributed to local school districts and other taxing agencies. The City also receives another form of property tax from the state to replace vehicle license fees formerly allocated to the City, which adds $3.6 million to the City General Fund. The transient occupancy tax (TOT) is charged at the rate of ten percent on room revenues for all lodging in the City. This is a relatively large revenue, at $5.9 million, and reflects San Luis Obispo’s strong position as a visitor attraction in the region. The utility users tax and the franchise fees are the next two largest General Fund revenues, at $5.3 and $2.5 million, respectively. Both revenues are generated by residential and business use of the various private utilities operating in the City, including electric and gas service, telephone, and cable TV. The City also charges businesses for annual business licenses and a gross receipts tax, which together generate about $2.1 million per year. Most of the other revenues in the General Fund are direct charges for services, the largest of which is development related fees such as building permits, planning entitlement fees or plan check fees ($3.6 million total, of which $300,000 is carried over from the prior year). Also, fees for recreation programs generate $1.6 million per year, which defrays about 40 percent of the cost for recreation programs. Several revenue sources are transferred into the General Fund from other Budget Funds. The Gas Tax revenues are allocated to the City by the state based on a formula that includes miles of roadway in the City as well as the City’s population. These funds can only be used for street maintenance. The other revenue source in this category includes Transportation Development Act (TDA) funds, which may be used only for alternative transportation modes and not for street maintenance under City policy. ATTACHMENT 4 PH3 - 89 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Administrative Draft Fiscal Analysis Page 29 August 2014 Table A-1: San Luis Obispo General Fund Budget, 2013-2014 Budget Category Annual Budget REVENUES Taxes Property Tax $8,761,100 Property Tax in lieu of VLF $3,645,700 Sales Tax: General $15,394,700 Sales Tax: Measure Y $6,674,000 Sales Tax: Public Safety $338,900 Transient Occupancy Tax $5,990,300 Utility Users Tax $5,356,000 Franchise Fees $2,525,900 Business Tax Certificates $2,116,600 Real Property Transfer Tax $200,000 Subventions and Grants $1,200,600 Service Charges Development Review Fees $3,571,600 Recreation Fees $1,577,400 Other Charges for Services $1,641,300 Other Revenue Fines and Forfeitures $156,000 Interest Earnings and Rents $179,000 Other Revenues $95,500 Transfers In Gas Tax/TDA $1,331,300 Transfers, Other $49,000 TOTAL REVENUES $60,804,950 EXPENDITURES General Government $10,314,900 Police $14,977,313 Fire $9,884,758 Transportation $3,363,700 Leisure, Cultural and Social Services $5,085,830 Parks and Landscape Maintenance $2,341,970 Budget Category Annual Budget Community Development $7,988,300 Economic Health $691,944 Development Review $1,471,666 Construction Regulation $3,443,119 Other Community Development $2,381,571 Transfers Out $11,333,700 TOTAL EXPENDITURES 65,467,941 Other Expenditure Savings (914,700) TOTAL NET REVENUES OVER EXPENDITURES ($3,570,821) Source: City of San Luis Obispo 2013-2015 Financial Plan and 2013-14 Mid-Year Budget Review. February 2014. ATTACHMENT 4 PH3 - 90 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Page 30 Administrative Draft Fiscal Analysis August 2014 On the expenditure side, police services has the largest budget at $15.0 million. The public safety function which includes the Fire Department is the largest function provided by the City General Fund with a budget of $25.0 million. The general government function shown in Table 2.3-2 represents a number of City programs combined, including8:  City Council  General Administration  City Attorney  Human Resources  Finance and Information Technology  Public Works Administration  Building and Fleet Maintenance The Transportation function includes planning, engineering, & street and storm drain maintenance. As discussed in the fiscal analysis, costs for these services will increase not only indirectly due to population and non-residential development, but also directly due to additional transportation management programs and new road facilities in the LUCE. Other transportation related services such as parking and transit are discussed in the analysis under Enterprise Funds. Parks and recreation, cultural services and social services are all grouped under the Leisure, Cultural and Social Services Function, with a total budget of $7.4 million, of which $2.3 million is for park and landscape maintenance. The Community Development Function includes planning and development review, as well as economic development activities that are located in the City’s Administration Department. In addition, the Building and Safety Division provides code enforcement and neighborhood services. The expenditures figures under the heading Transfers Out in Table 2.3-2 also include contributions by the General Fund to the Capital Improvement Program (CIP) and to the Debt Service Fund. For the current fiscal year, the General Fund is projected to make $7.1 million in CIP expenditures, most of which is funded by Measure Y sales tax revenues. In addition, the General Fund will contribute $2.76 million to debt service for bonds to pay for a variety of public safety, transportation, leisure services and general City building capital projects as well as $935,000 to pay down the City’s PERS liability. Fiscal Impact Calculations This section discusses in more detail how the major revenues and costs have been calculated for the future growth included in LUCE. Property Tax The base property tax is one percent of the assessed value for real property. In order to estimate assessed values for projected development in the LUCE, ADE compiled data on recent property transactions in San Luis 8 The General Fund expenditures shown in Table 2.3-1 are organized by functional category, as presented in the City budget. This is different than the City’s departmental organization, but provides a clearer picture of the service activities provided by City government. ATTACHMENT 4 PH3 - 91 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Administrative Draft Fiscal Analysis Page 31 August 2014 Obispo. Typically, the initial assessed value for new homes is set at the market value, or the sales price of the home when it is first sold. Table 13 shows data for 500 residential transactions and 31 non-residential transactions since January 2013. Since there has been very little new construction through the recession, most of these transactions are for existing properties. The non-residential transactions in particular are not comprehensive enough to represent all of the types of future development included in the LUCE, so we have supplemented the property sale data with other typical market factors to fill out estimates of average property values to use in the fiscal analysis (Table A-3). Most of these values are close to the averages for the properties shown in Table A-2, except for office and hotel uses, which we believe will be higher for new construction than is reflected in the recent property sales data. Table A-2: Recent Property Transactions in San Luis Obispo Source: ADE based on Dataquick, Zillow and Loopnet. Source: ADE based on Dataquick, Zillow and Loopnet. Property Type Aggregate Sales Amounts Number of Units/ Square Footage Sales/Units/SF No. of Transactions RESIDENTIAL Single Family Residence $192,601,700 314 $613,381 314 Condominium, PUD $39,909,484 110 $362,813 110 Duplex $2,210,500 8 $276,313 4 Triplex $1,420,000 6 $236,667 2 Quadruplex $2,749,000 16 $171,813 4 Mobile Home Parks, Trailer Parks $3,945,000 24 $164,375 24 Multi-Family Dwelling (2-4 Unit) $18,654,000 53 $351,962 32 Multi-Family Res (5+ Units) $2,787,500 30 $92,917 4 Residential Miscellaneous $4,460,500 6 $743,417 6 NON-RESIDENTIAL Food Store, Market $650,000 4,053 $160 2 Hotel/Motel $1,982,000 15,639 $127 1 Medical/Dental/Professional Bldg $1,445,000 7,045 $205 3 Office Building $6,578,500 33,015 $199 11 Store/Office Combo $4,525,000 22,132 $204 5 Stores, Retail Outlet $4,636,000 13,863 $334 4 Warehouse, Storage $3,868,500 35,272 $110 4 Industrial $2,495,000 12,585 $198 1 Table A-3: Assessed Value Factors Used in the Fiscal Analysis Value per Unit RESIDENTIAL Single Family $613,400 Multi-Family $303,600 NON-RESIDENTIAL Office $205 Retail $265 Industrial $135 Hotel $205 ATTACHMENT 4 PH3 - 92 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Page 32 Administrative Draft Fiscal Analysis August 2014 Property Tax Allocation As mentioned, the property tax paid by property owners is distributed to a wide range of local taxing agencies including not only the City of San Luis Obispo, but also the County, the school districts and other special taxing districts. On average, the City gets about 14 percent of the one percent tax for parcels within the historic City boundaries. The County of San Luis Obispo receives an average of about 22 percent of the tax and school district and other educational agencies, receive the majority of property tax revenues. In 1996, San Luis Obispo and the other cities in the County executed a property tax sharing agreement with the County for properties that would annex into the cities after that time. For those properties, the cities get a lower share of property tax from residential development, calculated as one-third of the share that would otherwise go to the County General Fund. That share is about 22 percent, so the cities’ share of residential property tax in annexation areas is about 7.4 percent, rather than the 14 percent that San Luis Obispo otherwise gets. In addition, the County continues to get the existing property tax generated by the properties in their undeveloped state at the time of annexation. For properties that develop into non-residential uses, such as retail, office or industrial business, the cities do not get any property tax. The City does collect any sales taxes or other revenues generated by these properties, which help pay for City services that are required to support these developments. The property tax estimates shown in the fiscal analysis reflect these tax allocation factors, depending on whether the property is within the historic City boundaries or would have been annexed after 1996. The analysis also deducts the existing assessed value of each property, where available, to limit the analysis to future new revenues that would be generated by the LUCE development. Sales Tax Calculations As part of the description of local economic conditions for the LUCE, ADE conducted a retail market analysis, which is included in Chapter 2.3 of the LUCE Background Report. In general, commercial businesses in San Luis Obispo capture more retail sales than is generated by the residents of the City alone. San Luis Obispo is a regional retail hub that attracts shoppers from around the County. In addition, commuters who drive into the City to work and tourists also make taxable retail purchases. Finally, business-to-business transactions generate a certain amount of sales taxes when the items purchased are not for resale to customers. Based on the retail market analysis and reviewing sales tax records for non-residential types of businesses, ADE estimated the sales tax generation factors by land use shown in Table A-4. The City receives one percent of taxable sales in the form of general sales taxes. The $92.00 in sales taxes per single family resident represents taxable purchases of $9,200 per year, which does not include groceries, pharmaceuticals or other non-taxable items. The dollar amounts shown for non-residential uses are presented in terms of revenues generated per job for each land use type. These are not employee expenditures but are taxable business transactions. They are expressed per job rather than per square foot of building space simply because our data on existing jobs is more reliable than the building space data and provide a more accurate factor to calculate potential future revenues from new development. The factor for commercial uses reflects sales in retail businesses and is roughly equivalent to taxable sales of $314 per square foot of retail space. Retail businesses serve as the point of sale for purchases from residents, visitors and other businesses, so most of the sales tax collected by the City comes through accounts of retail businesses. That means for the residential uses in particular we would be double counting revenues if we use raw sales tax generation factors simultaneously for both residential and retail uses. Therefore, this factor for commercial businesses has been lowered to net out sales from the other land uses. ATTACHMENT 4 PH3 - 93 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Administrative Draft Fiscal Analysis Page 33 August 2014 Table A-4: Per Capita Sales Tax Factors Land Use General Sales Per Resident or Per Job Single Family $92.00 Multi-Family $70.00 Office $10.00 Commercial $1,725.00 Industrial $52.00 Hotel Visitors $1.50 Source: ADE with data from MuniServices. The City’s existing 2,120 hotel rooms attract some 1,100,000 visitors to San Luis Obispo. Each visitor spends an estimated $150 on taxable restaurant and retail purchases, which generates $1.50 in sales taxes. The LUCE includes plans for 803 additional hotel rooms (See Table 1), which would attract an average of nearly 416,700 new visitors to the City and generate about $628,800 in additional general sales taxes per year. Transient Occupancy Tax (TOT) The hotel rooms would also generate new TOT taxes. For this analysis, we have assumed an average room rate of $120.00 per night and a 65 percent occupancy rate. These factors are comparable to recent experience in San Luis Obispo. If economic conditions improve substantially, the City could expect to see even higher revenues in the future. Per Capita Revenues and Costs Most other City revenues and costs are calculated on a per capita formula method based on employment and population in each land use category. Generally, jobs in the City are assumed to exert one-half the service demand as residential population. This is a standard assumption in fiscal impact analysis and reflects the fact that employees working in the City occupy their positions 8 hours per day while residents are there a minimum of 16 hours per day and more if they are not employed. In San Luis Obispo, there are 45,473 residents and 32,560 jobs. We also estimate there are the equivalent of 3,014 daily hotel visitors (1,100,000 total visitors/365 days), which are counted in this analysis the same as the residential population. With the jobs counting 50% of the population impact, it works out that the residential population requires 70 percent of the services that are allocated under this formula, while non-residential uses require 25 percent and hotel uses 5 percent. A similar logic is used to estimate revenues such as the utility users tax, franchise fees and miscellaneous service charges, fines and forfeitures collected by the City (Table A-5). Other revenues are more clearly associated with one type of land use or another, such as the business license taxes which are paid only by non-residential land uses and recreation program fees which tend to be mostly paid by local residents. Also, the gas tax revenues, which are shown as a transfer into the General Fund from the Gas Tax fund, are allocated to residential uses since the state formula for allocating these revenues to cities is based mainly on a per capita formula. ATTACHMENT 4 PH3 - 94 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Page 34 Administrative Draft Fiscal Analysis August 2014 Table A-5: Per Capita Revenue and Cost Factors Residential Business Visitors Proportion Per Capita Proportion Per Employee Proportion Per Visitor REVENUES Utility Users Tax 70% $82.07 25% $ 41.03 5% $82.07 Franchise Fees 70% $38.70 25% $19.35 5% $38.70 Business Tax Certificates 0% $0.00 100% $79.27 Service Charges Recreation Fees 100% $34.69 0% $0.00 Other Charges for Services 70% $25.15 25% $12.57 5% $25.15 Other Revenues Fines and Forfeitures 70% $2.39 25% $1.20 5% $2.39 Other Revenues 70% $1.46 30% $0.86 Transfers in Gas Tax/TDA 100% $29.28 0% $0.00 EXPENDITURES Police 70% $219.83 25% $109.91 5% $219.83 Fire 70% $90.98 25% $45.49 5% $90.98 Transportation 70% $59.04 25% $29.52 5% $59.04 Leisure, Cultural and Social Services 94% $99.60 0% $0.00 6% $99.60 Park and Landscape Maintenance 100% $51.50 0% $0.00 0% $51.50 Community Development Economic Health 0% $0.00 85% $13.54 15% $0.00 Development Review 70% $10.28 25% $5.14 $10.28 Other Community Dev. 70% $22.45 25% $11.22 5% $22.45 Transfers Out 70% $173.66 25% $86.83 5% $173.66 Service Cost Analysis The fiscal impact analysis is intended to show the increased public service costs for the City as new development occurs. This portion of the analysis focuses on annual recurring costs and revenues and therefore excludes capital improvement projects needed to support the LUCE. The Public Facilities Financing section addresses the infrastructure and facilities costs and funding programs needed to support future growth. Other costs that are unlikely to be repeated or expanded due to future growth have also been excluded. Mainly, these are costs for management functions such as the City Council and City Department Heads. While future growth will increase the demand for services, these service expansions will most likely occur through increases in service delivery staff. Table A-6 lists the costs removed from the fiscal impact analysis. In addition, the fiscal analysis deducts development and construction related fees that are paid once during the entitlement or construction process, but not paid on an annual basis by the eventual property owners. An ATTACHMENT 4 PH3 - 95 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Administrative Draft Fiscal Analysis Page 35 August 2014 amount equal to these revenues, shown as $3,291,600 in Table A-6, is deducted from the costs for the Community Development Department. These adjustments have the effect of focusing the fiscal analysis on the ongoing revenues and costs associated with new development rather than the onetime cost of processing the development applications. Subventions an grant have been removed from the analysis since they cannot be projected into the future associated with new development. As noted earlier in the analysis, increased costs for IT, building maintenance and street maintenance have been added to the cost basis for the fiscal analysis. Table A-6: Fiscal Model Revenue and Expenditure Adjustments [a] Function Amount Item General Government ($138,900) City Council General Government ($139,061) IT/Finance Dir General Government ($96,538) City Clerk General Government ($221,520) City Manager General Government ($125,554) Human Res Dir General Government $160,000 Additional IT capital expenditures General Government $867,000 Additional building maintenance expenditures Public Safety ($144,352) Police Chief Public Safety ($139,061) Fire Chief Public Safety ($280,000) Fire Plan Check Fees Transportation ($123,578) Public Works Dir Transportation $3,625,000 Additional street maintenance expenditures Leisure ($111,592) Parks & Rec Dir Community Development ($96,538) ED Mgr Community Development ($139,061) CD Director Community Development ($85,826) Chief Building Official Community Development ($3,291,600) Development Review Fees Various ($914,700) Mid-Year Expenditure Savings Various ($1,200,600) Subventions and Grants Benefits 49% Added to salaries [a] Note: Salary figures generally reflect the average of the salary scale for each position as published by the San Luis Obispo Human Resources Departments. The figures do not necessarily represent the actual salaries of the individuals who occupy these positions. The additional benefits factor of 49% of base compensation is derived from the City of San Luis Obispo 2013-2015 Financial Plan, page D-19. Municipal service costs for services provided directly to the population or businesses were generally allocated based on the per capita method explained above. First, however, certain services were allocated to residential or non-residential land uses based on their function. Recreation, cultural services and social services were allocated 100% to residential land uses. Economic Health was allocated 100% to non- residential land uses. Police services costs are estimated using the per capita methodology as shown in Table A-5. However, within the non-residential land uses, commercial and hospitality land uses were weighted roughly twice as much as ATTACHMENT 4 PH3 - 96 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Page 36 Administrative Draft Fiscal Analysis August 2014 other business types, based on data from other cities that indicate calls for service related to shoplifting, burglary, parking lot incidences and disturbing the peace are higher for retail, restaurant and night club uses. For Fire Department services, one-third of the costs are allocated based on assessed value for each land use, which represents the portion of fire department services related to fire suppression. The other two-thirds represents medical emergency responses, which are allocated based on the per capita formula explained above. This overall split of services is based on a general discussion with the City Fire Marshall. The Transfers Out are mainly for capital improvement projects and debt service, which is for long term capital projects financing. In particular, nearly $5 million of the total sales tax revenue received by the City from Measure Y is programmed for capital improvements projects. If Measure Y is not renewed by the voters, these expenditures and General Fund contributions will likely need to be reduced. Other recipients of General Fund support are the Community Development Block Grant program, the Open Space Protection Fund, the Fleet Replacement Fund, Information Technology Fund and the Major Facility Replacement Fund. ATTACHMENT 4 PH3 - 97 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Administrative Draft Fiscal Analysis Page 37 August 2014 Appendix B: Development Impact Fee Estimates Table B-1: Estimated Traffic Impact Fees From LUCE Development Project/Development Areas Traffic Impact Fees Single Family Multifamily Office Commercial Industrial Hotel Citywide Base TIF $3,516 $3,120 $7.051 $7.406 $2.036 $1,632 Foothill @ Santa Rosa Area $249,600 Caltrans Site $165,360 -$26,737 -$105,647 $326,400 General Hospital Site $31,644 $99,840 $344,004 Broad Street Area $1,837,680 $1,696,478 Sunset Drive-In Site $0 $1,838,238 $1,651,257 Dalidio / Madonna Area $1,125,120 $561,600 $1,057,650 $1,481,200 $326,400 Pacific Beach Site $0 $97,736 $350,744 $0 Calle Joaquin Auto Sales Area $781,203 $161,520 Madonna Site on LOVR $295,780 $97,484 $884,500 $187,094 LOVR Creekside Area $408,948 Broad St. @ Tank Farm Rd. Site $0 $127,920 $515,992 $464,549 $0 Avila Ranch $1,174,095 $758,740 $152,500 Chinatown Project $0 $99,840 $0 $340,676 $127,000 Pacific Courtyards $0 $37,440 $70,510 $0 $0 Mission Estates $35,160 $0 $0 $0 $0 Four Creeks (Creekston and Laurel Creek) $0 $517,920 $0 $0 $0 Garden Street Terrace $0 $24,960 $0 $185,150 $104,000 313 South Street Apartments $0 $134,160 $0 $0 Marsh Street Commons $0 $34,320 $0 $22,218 ICON project (1340 Taft) $0 $21,840 $0 $29,624 Margarita Area Specific Plan $1,919,931 $291,846 $5,219,930 $51,950 Airport Area Specific Plan $6,345,900 $2,359,343 $1,522,199 Orcutt Area Specific Plan $1,898,640 $1,369,680 $81,466 Suburban Residential4 $14,064 $0 $0 $0 Low Density Residential $1,125,120 $0 $0 $0 Medium Density Residential $249,636 $0 $0 $0 Medium-High Density Residential $18,720 $0 $0 High Density Residential $159,120 $0 $0 Neighborhood Commercial5 $0 $0 $19,359 Community Commercial5 $0 $0 $309,704 Tourist Commercial5 $0 $0 $112,912 Office4 $0 $139,751 Services and Manufacturing $0 $0 $294,888 Public $0 $0 ATTACHMENT 4 PH3 - 98 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Page 38 Administrative Draft Fiscal Analysis August 2014 Project/Development Areas Traffic Impact Fees Single Family Multifamily Office Commercial Industrial Hotel LOVR Sub Area $8,878 $6,506 $13.402 $20.556 $4,611 Pacific Beach Site $149,492 $831,206 Madonna Site on LOVR $452,410 $2,096,120 $453,835 LOVR Creekside Area $1,034,454 $0 $0 $0 Calle Joaquin Auto Sales Area $0 $0 $1,851,322 $391,800 Avila Ranch $2,425,545 $1,160,530 $361,400 MASP Sub Area $12,320 $8,306 $23.746 $49.406 Margarita Area Specific Plan $7,197,333 $761,111 $17,621,937 $437,870 AASP Sub Area $3,516 $3,120 $11.745 $7.424 $2.850 Broad St@Tank Farm Rd. $94,721 $334,213 $754,427 Avila Ranch $1,339,474 $681,531 $300,683 Airport Area Specific Plan⁸ $4,110,300 $2,205,097 $796,986 OASP Sub Area $12,171 $8,912 $7.051 $31.100 Orcutt Area Specific Plan $4,250,340 $2,413,622 $342,104 TOTAL BY LAND USE $22,786,102 $14,060,921 $37,669,172 $20,049,414 $2,614,073 $2,078,049 GRAND TOTAL $99,257,732 Source: San Luis Obispo City Staff Note: Impact fees shown for Special Planning areas such as Dalidio/San Luis Ranch (SP-3), Avilla Ranch (SP-4), and Madonna property on LOVR (SP-2) are illustrative only and will need finalization/amendment when specific projects are submitted and development agreements, if necessary, are negotiated. ATTACHMENT 4 PH3 - 99 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Administrative Draft Fiscal Analysis Page 39 August 2014 Table B-2: Estimated Water Impact Fees from LUCE Development Project/Development Areas Water Impact Fees Single Family Multifamily Office Commercial Industrial Hotel Citywide Base TIF $10,775 $7,542 $3.879 $4.310 $3.879 $10.775 Foothill @ Santa Rosa Area $603,360 Caltrans Site $399,726 $1,293,000 General Hospital Site $96,975 $241,344 $189,249 Broad Street Area $4,442,238 $987,283 Sunset Drive-In Site $0 $1,011,279 $960,966 Dalidio / Madonna Area $3,448,000 $1,357,560 $581,850 $862,000 $1,293,000 Pacific Beach Site $0 $286,596 $247,821 $0 Broad St. @ Tank Farm Rd. Site $0 $309,222 $283,865 $270,349 $0 Chinatown Project $0 $241,344 $0 $198,260 $504,270 Pacific Courtyards $0 $90,504 $38,790 $0 $0 Mission Estates $107,750 $0 $0 $0 $0 Four Creeks (Creekston & Laurel Creek) $0 $1,251,972 $0 $0 $0 Garden Street Terrace $0 $60,336 $0 $107,750 $465,480 313 South Street Apartments $0 $324,306 $0 $0 Marsh Street Commons $0 $82,962 $0 $12,930 ICON project (1340 Taft) $0 $52,794 $0 $17,240 Suburban Residential $43,100 $0 $0 $0 Low Density Residential $3,448,000 $0 $0 $0 Medium Density Residential $765,025 $0 $0 $0 Medium-High Density Residential $45,252 $0 $0 High Density Residential $384,642 $0 $0 Neighborhood Commercial $0 $0 $11,266 Community Commercial $0 $0 $180,236 Tourist Commercial $0 $0 $65,710 Office $0 $76,882 Services and Manufacturing $0 $0 $561,823 Public $0 $23,654 Madonna Site on LOVR $0 $867,330 $65,051 $1,017,160 $0 $898,635 LOVR Creekside Area $0 $1,199,178 $0 $0 $0 $0 Calle Joaquin Auto Sales Area $0 $0 $0 $551,964 $0 $775,800 Avila Ranch $4,363,875 $2,224,890 $0 $107,750 $0 $0 Margarita Area Specific Plan $7,984,275 $957,834 $3,720,027 $43,100 $0 $0 Airport Area Specific Plan $0 $0 $1,657,074 $2,659,197 $2,900,103 $0 Orcutt Area Specific Plan $5,818,500 $3,310,938 $0 $47,410 $0 $0 TOTAL BY LAND USE $26,075,500 $18,734,328 $7,647,720 $8,348,392 $3,461,926 $5,230,185 GRAND TOTAL $69,498,051 Source: ADE, based on City of San Luis Obispo Fee Structure. ATTACHMENT 4 PH3 - 100 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Page 40 Administrative Draft Fiscal Analysis August 2014 Table B-3: Estimated Wastewater Impact Fees from LUCE Development Project/Development Areas Wastewater Impact Fees Single Family Multifamily Office Commercial Industrial Hotel Citywide Fee $3,729 $2,610 $1.342 $1.492 $1.342 $3.729 Foothill @ Santa Rosa Area $208,800 Caltrans Site $138,330 $447,480 General Hospital Site $33,561 $83,520 $65,495 Broad Street Area $769,645 $170,839 Sunset Drive-In Site $0 $349,982 $332,570 Pacific Beach Site $0 $99,180 $85,766 $0 $0 Chinatown Project $0 $83,520 $0 $68,614 $174,517 Avila Ranch $3,761,235 $1,917,500 $0 $92,870 $0 $0 Pacific Courtyards $0 $31,320 $13,424 $0 $0 Mission Estates $37,290 $0 $0 $0 $0 Four Creeks (Creekston & Laurel Creek) $0 $433,260 $0 $0 $0 Garden Street Terrace $0 $20,880 $0 $37,290 $161,093 313 South Street Apartments $0 $112,230 $0 $0 Marsh Street Commons $0 $28,710 $0 $4,475 ICON project (1340 Taft) $0 $18,270 $0 $5,966 Suburban Residential $14,916 $0 $0 $0 Low Density Residential $1,193,280 $0 $0 $0 Medium Density Residential $264,759 $0 $0 $0 Medium-High Density Residential $15,660 $0 $0 High Density Residential $133,110 $0 $0 Neighborhood Commercial $0 $0 $3,899 Community Commercial $0 $0 $62,376 Tourist Commercial $0 $0 $22,741 Office $0 $26,607 Services and Manufacturing $0 $0 $194,435 Public $0 $8,186 Laguna Catchment Area $4,219 $2,953 $1.519 $1.688 $1.519 $4.219 Dalidio / Madonna Area $1,350,080 $531,540 $227,826 $337,520 $0 $506,280 Calle Joaquin Catchment Area $5,558 $3,890 $2.001 $2.223 $2.001 $5.558 Madonna Site on LOVR $447,350 $33,555 $524,675 $0 $463,537 LOVR Creekside Area $618,510 $0 $0 $0 $0 Calle Joaquin Auto Sales Area $0 $0 $284,716 $0 $400,176 Silver City Catchment Area $1,356 $1,280 $0.488 $0.542 $0.488 $1.356 Margarita Area Specific Plan $251,199 $40,640 $0 $0 Margarita Catchment Area $6,474 $4,532 $2.331 $2.590 $2.331 $6.474 Margarita Area Specific Plan $1,679,032 $431,673 $0 $0 $0 $0 Tank Farm Catchment Area $7,359 $5,151 $2.649 $2.944 $2.649 $7.359 Broad Street Area $1,516,970 $337,142 ATTACHMENT 4 PH3 - 101 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Administrative Draft Fiscal Analysis Page 41 August 2014 Project/Development Areas Wastewater Impact Fees Single Family Multifamily Office Commercial Industrial Hotel Margarita Area Specific Plan $2,181,208 $654,177 $2,540,666 $29,436 $0 $0 Airport Area Specific Plan $0 $0 $1,131,731 $1,816,151 $1,980,683 $0 Broad St. @ Tank Farm Rd. Site $0 $211,191 $193,871 $184,640 $0 $0 Orcutt Area Specific Plan $3,973,860 $2,261,289 $0 $32,380 $0 $0 TOTAL BY LAND USE $14,740,420 $10,806,275 $4,591,345 $4,434,066 $2,175,118 $2,153,083 GRAND TOTAL $38,900,306 Source: ADE, based on City of San Luis Obispo Fee Structure. ATTACHMENT 4 PH3 - 102 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Page 42 Administrative Draft Fiscal Analysis August 2014 Table B-4: Parks and Open Space Fees Project/Development Areas Water Impact Fees Single Family Multifamily Office Commercial Industrial Citywide Base TIF $5,668 $4,494 Foothill @ Santa Rosa Area $0 $359,520 Caltrans Site $0 ($15,728) General Hospital Site $51,012 $143,808 Broad Street Area $0 $2,646,966 Dalidio / Madonna Area $498,982 $222,541 Pacific Beach Site $0 $170,772 Broad St. @ Tank Farm Rd. Site $0 $184,254 Chinatown Project $0 $143,808 Pacific Courtyards $0 $53,928 Mission Estates $56,680 $0 Four Creeks (Creekston & Laurel Creek) $0 $746,004 Garden Street Terrace $0 $35,952 313 South Street Apartments $0 $193,242 Marsh Street Commons $0 $49,434 ICON project (1340 Taft) $0 $31,458 Suburban Residential4 $22,672 $0 Low Density Residential $1,813,760 $0 Medium Density Residential $402,428 $0 Medium-High Density Residential $0 $26,964 High Density Residential $0 $229,194 Madonna Site on LOVR $0 $516,810 LOVR Creekside Area $0 $184,526 Avila Ranch $2,295,540 $1,325,730 MASP Sub Area $8,247 $6,945 Margarita Area Specific Plan $6,111,027 ($116,375) AASP Open Space Fee $166,604 $354,148 $390,269 TOTAL BY LAND USE $11,257,769 $7,137,302 $166,604 $354,148 $390,269 GRAND TOTAL $19,306,093 Source: ADE, based on City of San Luis Obispo Fee Structure. ATTACHMENT 4 PH3 - 103 FFIISSCCAALL IIMMPPAACCTT AANNAALLYYSSIISS SSaann LLuuiiss OObbiissppoo GGeenneerraall PPllaann UUppddaattee Administrative Draft Fiscal Analysis Page 43 August 2014 ATTACHMENT 4 PH3 - 104