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HomeMy WebLinkAbout10-21-2014 C2 Minutes of September 16, 23, 30, 2014 MEETING DATE: October 21, 2014 ITEM: C2 MINUTES CITY OF SAN LUIS OBISPO SPECIAL AND REGULAR MEETING OF THE CITY COUNCIL Tuesday, September 16, 2014 Special Meeting – 4:00 p.m. Regular Meeting – 6:00 p.m. Council Chamber, 990 Palm Street San Luis Obispo, California CALL TO ORDER A Special Meeting of the San Luis Obispo City Council was called to order on Tuesday, September 16, 2014 at 4:00 p.m. in the City Council Chambers, located at 990 Palm Street, San Luis Obispo, California, by Mayor Marx. ROLL CALL Council Members Present: Council Members John Ashbaugh, Dan Carpenter, Kathy Smith, Vice Mayor Carlyn Christianson, and Mayor Jan Marx Council Member Absent: None City Staff Present: Katie Lichtig, City Manager, Christine Dietrick, City Attorney, Michael Codron, Assistant City Manager, and Anthony Mejia, City Clerk, were present at Roll Call. Other staff members presented reports or responded to questions as indicated in the minutes. PUBLIC HEARING PH1. AUTHORIZATION TO ISSUE UP TO $8,305,000.00 PAR VALUE LEASE REVENUE BONDS FOR THE EXPANSION OF THE LOS OSOS VALLEY ROAD (LOVR)/HIGHWAY 101 OVERPASS - RESOLUTION Finance and Information Technology Director Padilla narrated a presentation entitled “Public Hearing To Consider Issuance Up To $8,305,000.00 Par Value Lease Revenue Bonds for the Expansion of the Los Osos Valley Road (LOVR)/Highway 101 Overpass” and responded to Council inquires. Mayor Marx opened and closed the Public Hearing, there being no one desiring to speak on this item. C2 - 1 City Council Meeting Minutes – September 16, 2014 Page 2 MOTION BY COUNCIL MEMBER ASHBAUGH, SECOND BY VICE MAYOR CHRISTIANSON, CARRIED 5-0, to continue this matter to the regular meeting at 6:00 p.m. The City Council continued this matter and at 6:15 p.m. took action during its regular meeting with all members present. MOTION BY COUNCIL MEMBER ASHBAUGH, SECOND BY VICE MAYOR CHRISTIANSON, CARRIED 5-0, to adopt Resolution No. 10561 (2014 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing the issuance, sale and delivery of San Luis Obispo Public Financing Authority Lease Revenue Bonds; the execution and delivery of a Continuing Disclosure Certificate, a Site Lease and a Facility Lease; the preparation and distribution of a Preliminary and Final Official Statement; and certain other actions in connection therewith.” MEETING RECESSED Council recessed to a meeting of the Public Financing Authority at 4:13 p.m. MEETING RECONVENED Council reconvened at 4:17 p.m., with all members present. BUSINESS ITEM B1. APPEAL OF THE DIRECTOR OF PUBLIC WORKS’ DECISION DENYING BID PROTESTS FILED BY JOHN MADONNA CONSTRUCTION, INC./SOUZA CONSTRUCTION, INC. AND (IF FILED) CALPORTLAND CONSTRUCTION COMPANY - CONTRACT AWARD FOR US 101/LOS OSOS VALLEY ROAD INTERCHANGE IMPROVEMENTS PROJECT, SPECIFICATION NO. 99821 - RESOLUTION Individual members of Council noted for the record that they have had no contact with the appellant nor the respondent related to this appeal. Public Works Director Grigsby and Supervising Project Manager Rowland narrated a presentation entitled “Los Osos Valley Road/US 101 Interchange Improvements Project Award” and responded to Council inquires. Tavenor Holland, representing John Madonna Construction/Souza Construction, voiced objection to awarding the subject contract to Granite Construction; asserted that Granite has failed to meet Disadvantaged Business Enterprise (DBE) program requirements and therefore should be disqualified; opined Council should be cautious in finding that Granite made a good faith effort to comply with DBE requirements. C2 - 2 City Council Meeting Minutes – September 16, 2014 Page 3 Steve Souze, Souza Construction, urged Council to support the bid protest against Granite Construction; stated that to find that a good faith effort to comply with DBE requirements is a strict standard and Caltrans would typically select the next responsible bidder. Michael Green, representing Granite Construction, stated that Granite Construction achieved the required DBE threshold contained in the bid; stated that it is common practice for prime contractors to encourage subcontractors to reach out to DBE companies; pointed out that the City Charter requires the City to select the lowest responsive and responsible bidder, opining that the contract should be award to Granite Construction. In response to Council inquiry, Assistant City Attorney Ansolabehere advised that it is industry standard for contractors to obtain commitments and material quotes from subcontractors rather than executing contracts prior to award of bid. MOTION BY COUNCIL MEMBER ASHBAUGH, SECOND BY VICE MAYOR CHRISTIANSON, CARRIED 4-1 (COUNCIL MEMBER CARPENTER VOTING NO), to adopt Resolution No. 10563 (2014 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, upholding the Director of Public Works’ decision to deny the bid protest submitted by John Madonna Construction Company Inc./Souza Construction , Inc., a Joint Venture, against Granite Construction Company regarding the Los Osos Valley Road Interchange project, Specification No. 99821.” MOTION BY COUNCIL MEMBER ASHBAUGH, SECOND BY VICE MAYOR CHRISTIANSON, CARRIED 4-1 (COUNCIL MEMBER CARPENTER VOTING NO), to award a contract to Granite Construction of Santa Barbara, California, in the amount of $16,571,129.84 for the US 101/LOVR Interchange Project, Specification No. 99821. MOTION BY VICE MAYOR CHRISTIANSON, SECOND BY MAYOR MARX, CARRIED 4-1 (COUNCIL MEMBER CARPENTER VOTING NO), Authorize the City Engineer to approve construction contract change orders for the US 101/LOVR Interchange Project in any amount with the limitation that the sum total of all contract change orders not exceed the contingency budget amount of $1,250,000. CLOSED SESSION City Attorney Dietrick requested a Closed Session to discuss the following item listed on the Closed Session agenda. A. CONFERENCE WITH LEGAL COUNSEL - Anticipated Litigation Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9: No. of potential cases: One; Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9: No. of potential cases: One. C2 - 3 City Council Meeting Minutes – September 16, 2014 Page 4 PUBLIC COMMENT ON CLOSED SESSION ITEM City Attorney Dietrick called for public comment. There was no one present desiring to speak on Closed Session. RECESS Council recessed to Closed Session in the Council Hearing Room at 5:16 p.m. CALL TO ORDER A Regular Meeting of the San Luis Obispo City Council was called to order on Tuesday, September 16, 2014 at 6:00 p.m. in the City Council Chambers, located at 990 Palm Street, San Luis Obispo, California, by Mayor Marx. PLEDGE OF ALLEGIANCE Vice Mayor Christianson led the Pledge of Allegiance. REPORT FROM CLOSED SESSION City Attorney Dietrick advised that Council provided direction to staff and took no reportable action. PRESENTATIONS A. PROCLAMATION – ADULT LITERACY AWARENESS MONTH Mayor Marx presented a Proclamation to Bernadette Bernardi, Executive Director of the Literacy Council proclaiming September 2014 as “Adult Literacy Awareness Month.” B. PROCLAMATION – FIRE PREVENTION WEEK Mayor Marx presented a Proclamation to Rodger Maggio, Fire Marshal, proclaiming October 5-11, 2014 as “Fire Prevention Week.” C REGIONAL TRANSIT AUTHORITY RUNABOUT FARE INCREASE PROPOSAL Geoff Straw, Executive Director of the San Luis Obispo Regional Transit Authority, made a presentation regarding the San Luis Obispo Regional Transit Authority’s proposed Runabout fare increase. C2 - 4 City Council Meeting Minutes – September 16, 2014 Page 5 PUBLIC COMMENT David Brodie, San Luis Obispo, voiced concern that the City authorized the rezoning of a property adjacent to his residence and the construction has caused cracking to his rear exterior wall; asserted that the development of the site is impacting his quality of life. Scott Talmage, FETCH Cart Services, requested that Council agendize consideration of an ordinance related to retrieval of abandoned shopping carts. Dave Hannings, San Luis Obispo, urged that the City be considerate of street closure and parking impacts to adjacent neighborhood residents during special events in the downtown area. Donald Hedrick, San Luis Obispo, asserted that specific individuals are being targeted for citations; recommended that the City be more courteous and understanding in its interactions with residents. Mila Vujovich-LaBarre, San Luis Obispo, voiced objection to a proposed extended stay hotel near the auto dealerships; voiced concerns related to height, massing, and viewshed impacts; urged Council to deny any proposed rezone of the site. Lisa Myrick, San Luis Obispo, stressed the need for bicycle and pedestrian circulation improvements; conveyed her experience with rising housing costs, pointing out there is a need for affordable housing. CONSENT AGENDA MOTION BY COUNCIL MEMBER ASHBAUGH, SECOND BY VICE MAYOR CHRISTIANSON, CARRIED 5-0, to approve Consent Calendar Items C1 thru C7, with the removal of Item C3 for separate consideration. Council Member Carpenter registered no votes on Items C5 and C6. C1. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES MOTION BY COUNCIL MEMBER ASHBAUGH, SECOND BY VICE MAYOR CHRISTIANSON, CARRIED 5-0, to waive reading of all resolutions and ordinances as appropriate C2. MINUTES OF CITY COUNCIL MEETING OF AUGUST 19, 2014 MOTION BY COUNCIL MEMBER ASHBAUGH, SECOND BY VICE MAYOR CHRISTIANSON, CARRIED 5-0, to approve the Minutes of the City Council meeting of August 19, 2014, as presented. C2 - 5 City Council Meeting Minutes – September 16, 2014 Page 6 C3. MILLS ACT CONTRACT FOR THE SNYDER BUILDING AT 774 MARSH STREET – RESOLUTION Council Member Carpenter recused himself from deliberation relative to the Mills Act Contract for the Synder Building because he owns property within 500’ of the subject property and left the Chambers at 6:48 p.m. MOTION BY COUNCIL MEMBER ASHBAUGH, SECOND BY VICE MAYOR CHRISTIANSON, CARRIED 4-0 (COUNCIL MEMBER CARPENTER ABSTAINING), to adopt Resolution No. 10564 (2014 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, approving an Historic Property Preservation Agreement between the City of San Luis Obispo and owners of the Snyder Building at 774 Marsh Street (CHCMA 88-14).” Council Member Carpenter returned to the dais at 6:50 p.m. C4. ADDITION OF THE CONTRIBUTING HISTORIC RESIDENCE AT 1152 BUCHON STREET TO THE MASTER LIST OF HISTORIC RESOURCES AS THE HISTORIC “CHARLES E. STRICKLAND HOUSE” – RESOLUTION MOTION BY COUNCIL MEMBER ASHBAUGH, SECOND BY VICE MAYOR CHRISTIANSON, CARRIED 5-0, to adopt Resolution No. 10565 (2014 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, adding the property at 1152 Buchon Street to the Master List of Historic Resources as the ‘Charles E. Strickland House’ (CHC 51-13).” C5. PUBLIC ART DESIGN MODIFICATIONS FOR THE PORTOLA FOUNTAIN AT THE INTERSECTION OF HIGUERA AND MARSH STREETS MOTION BY COUNCIL MEMBER ASHBAUGH, SECOND BY VICE MAYOR CHRISTIANSON, CARRIED 4-1 (COUNCIL MEMBER CARPENTER VOTING NO), to approve the public art design modifications for the Portola Fountain project to be located at the intersection of Higuera and Marsh Streets, Specification No. 90455. C6. LIMITATION OF OUTDOOR IRRIGATION OF ORNAMENTAL LANDSCAPING OR TURF WITH POTABLE WATER TO THREE DAYS A WEEK – RESOLUTION MOTION BY COUNCIL MEMBER ASHBAUGH, SECOND BY VICE MAYOR CHRISTIANSON, CARRIED 4-1 (COUNCIL MEMBER CARPENTER VOTING NO), to adopt Resolution No. 10566 (2014 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, implementing mandatory restrictions on the outdoor irrigation of ornamental landscapes or turf with potable water.” C2 - 6 City Council Meeting Minutes – September 16, 2014 Page 7 C7. AMENDMENT TO COOPERATION AGREEMENT WITH THE COUNTY OF SAN LUIS OBISPO REGARDING CITY PARTICIPATION IN THE URBAN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT FEDERAL PROGRAM FOR FISCAL YEARS 2015-2017 MOTION BY COUNCIL MEMBER ASHBAUGH, SECOND BY VICE MAYOR CHRISTIANSON, CARRIED 5-0, approve an amendment to the Cooperation Agreement with the County of San Luis Obispo for participation in the Urban County federal grant program for Fiscal Years 2015-2017. PUBLIC HEARINGS PH2. APPEAL OF DENIAL FOR AN ENCROACHMENT PERMIT FOR SIDEWALK REPLACEMENT AT 779-787 HIGUERA STREET – RESOLUTION Council Member Carpenter recused himself from deliberation relative to an encroachment permit for sidewalk replacement at 779-787 Higuera Street because he owns commercial property within 500’ of the subject property and left the Chambers at 6:52 p.m. Vice Mayor Christianson recused herself from deliberation relative to an encroachment permit for sidewalk replacement at 779-787 Higuera Street because she has a long and close personal ties with Project Architect Jeff Bague and his family; therefore, her ability to consider the facts independently and objectively may be impacted by said connections or at a minimum the public perception of objectivity may not be present; left the Chambers at 6:52 p.m. Council Members Ashbaugh and Smith and Mayor Marx reported that they have individually visited the site but have not had direct contact with the applicant. Public W orks Deputy Director/City Engineer Lynch narrated a presentation entitled “Appeal 779 Higuera Sidewalk Installation” and responded to Council inquires. Mayor Marx opened the Public Hearing. Dennis Law, representing Beverly Maytag, explained that this is a request to reconstruct the sidewalk to improve Americans with Disabilities Act (ADA) access to the store; voiced objection to modifying the stores interior space to correct the deficiencies; noted that Ms. Maytag is willing to fund to reconstruction of the sidewalks at her expense. Beverly Maytag, Appellant, San Francisco, pointed out that this is a family owned property for over 100 years and the property has undergone a seismic retrofit; urged Council to approve the reconstruction and allow her to improve ADA access to her property; pointed out that the sidewalks will be timely constructed. C2 - 7 City Council Meeting Minutes – September 16, 2014 Page 8 Jeff Bague, Project Architect, urged Council allow his client to reconstruct the subject sidewalk to improve ADA access to the building, noting that Ms. Maytag is will to do the work at her own expense. Terry Brown, San Luis Obispo, noted that Ms. Maytag has taken efforts to improve the integrity of the building and urged Council to be supportive of her attempt to improve ADA access to the store; pointed out that the City tree is a hindrance to the business, blocking view into the store. There being no others desiring to speak on this item, the Public Hearing was closed. In response to Council inquiry, City Attorney Dietrick and Mr. Dennis Law agreed to develop an indemnification agreement that would acceptable by both parties and ensuring the City is not exposed to greater liability than currently exists. Council Member Ashbaugh noted for the record that he opposes reconstructing a sidewalk that was recently constructed; opined that construction should avoid the holiday season and stressed the importance of color matching the adjacent sidewalks. MOTION BY COUNCIL MEMBER SMITH, SECOND BY MAYOR MARX, CARRIED 3-0 (COUNCIL MEMBER CARPENTER AND VICE MAYOR CHRISTIANSON ABSTAINING), to uphold an appeal of the Public Works Director’s decision to deny an Encroachment Permit for sidewalk replacement at 779, 781, 785 and 787 Higuera Street (Permit No. 140245), subject to execution of an indemnification agreement, subject to City Attorney approval, and the regular plan review process. PH3. LAND USE AND CIRCULATION ELEMENT UPDATE PROJECT (LUCE): CERTIFICATION OF THE FINAL ENVIRONMENTAL IMPACT REPORT AND ADOPTION OF A STATEMENT OF OVERRIDING CONSIDERATION RELATIVE TO AIR QUALITY, NOISE AND TRAFFIC/CIRCULATION IMPACTS; CONSIDERATION OF THE GENERAL HOSPITAL AND BISHOP KNOLLS FOCUS AREAS OF CHAPTER 8 OF THE LAND USE ELEMENT; AND CLOSE OUT OF THE SUSTAINABLE COMMUNITIES PLANNING GRANT FOR THE LUCE UPDATE PROJECT – RESOLUTIONS City Attorney Dietrick noted that Council Member Ashbaugh has a conflict of interest as it relates to the Bishop Knoll Special Planning Area because he owns property within 500’ and will be recusing himself; explained that Council Member Carpenter has a conflict of interest as it relates to the General Hospital Special Planning Area because he owns property within 500’ and will be recusing himself; explained the rules for recusal from EIR consideration and segmentation of subsequent actions. C2 - 8 City Council Meeting Minutes – September 16, 2014 Page 9 City Clerk Mejia conducted a random drawing and it was determined that Bishop Knolls Special Planning Area would be considered prior to the General Hospital Special Planning Area. Council Members Ashbaugh and Carpenter left the Chambers at 7:15 p.m. Community Development Director Johnson, Contract Planner Kaiser, and Associate Planner Leveille narrated a presentation entitled “Land Use and Circulation Element (LUCE) Update Final Environmental Impact Report, General Hospital, Bishop Knoll, Grant Close-Out” and responded to Council inquires. Mayor Marx opened the Public Hearing. Stephan Peck, representing Avila Ranch Company, commended Council and staff for its community outreach efforts related to the LUCE; spoke on the need for phasing of fire services in the south side area. Eugene Jud, San Luis Obispo, displayed photos of alternative solutions to the Los Osos Valley Road interchange project, recommending a focus on maintaining open and agricultural space. Mila Vujovich-LaBarre, San Luis Obispo, voiced objection to the adoption of the FEIR, opining that the City will be at greater risk of liability; expressed concern that Prado Road will be a four-lane truck route; asserted that the Prado Road interchange is development driven and San Luis Ranch should pay for it entirely. Rosemary Wilvert, San Luis Obispo, urged Council to give serious consideration to the reduced development alternative for San Luis Ranch; voiced a preference for no interchange or overpass at Prado Road; voiced support for Mr. Jud’s alternative interchange proposal. Sarah Flickinger, speaking on behalf of the Homeowners Associations for Los Verdes Development I and II, opined that there is a conflict related to the California Environmental Quality Act (CEQA); stated that the FEIR references a memo related to a Chevron mitigation measure, noting that the memo was dated June 29, 2024, which is outside of the FEIR disclosure period. Marshall Ochylski, representing San Luis Ranch Project, pointed out that this is a Program EIR, and does not approve any specific projects; noted that has been significant community input and urged Council certification of the FEIR. In response to public comment, Community Development Director Johnson advised that the Prado Road extension has been identified as a four lane road since the 1960s; noted that the EIR findings contain substantial evidence that the City is complying with safe land uses and is compliant with state law; advised that a technical memorandum, dated June 29, 2014, was added to the EIR as an Appendix, noting that staff has concluded that no new substantial evidence was introduced into the record that would require recirculation; explained that the Chevron EIR introduced project level mitigation measures related to fire service for the south side and when Avila Ranch submits a project proposal, Council will then be able consider project specific fire service mitigation measures. C2 - 9 City Council Meeting Minutes – September 16, 2014 Page 10 There being no others desiring to speak on this item, the Public Hearing was closed. Following discussion, MOTION BY COUNCIL MEMBER SMITH, SECOND BY VICE MAYOR CHRISTIANSON, CARRIED 3-0 (COUNCIL MEMBERS ASHBAUGH AND CARPENTER ABSTAINING), to adopt Resolution No. 10569 (2014 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, certifying the Final Programmatic Environmental Impact Report (EIR) prepared for the Land Use and Circulation Element (LUCE) Update Program (Application #GPI/ER 15-12),” with findings of overriding consideration relative to Air Quality, Noise, and Transportation/Circulation. RECESS Council recessed at 8:55 p.m. and reconvened at 9:10 p.m., with all Council Members present. Community Development Director Johnson, Contract Planner Kaiser, and Associate Planner Leveille continued their presentation and responded to Council inquires. MOTION BY MAYOR MARX, SECOND BY VICE MAYOR CHRISTIANSON, CARRIED 3-0 (COUNCIL MEMBERS ASHBAUGH AND CARPENTER ABSTAINING), to adopt Resolution No. 10571 (2014 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, approving new policy language in the draft Land Use Element related to the North Side of Foothill (Bishop Knoll) Area (GPI 15-12).” Council Member Ashbaugh returned to the dais at 9:16 p.m. Community Development Director Johnson, Contract Planner Kaiser, and Associate Planner Leveille continued their presentation and responded to Council inquires. Lisa Myrick, San Luis Obispo, urged Council to consider maintaining the historical section of the General Hospital site, noting the pristine tree area. MOTION BY COUNCIL MEMBER ASHBAUGH, SECOND BY COUNCIL MEMBER SMITH, CARRIED 4-0 (COUNCIL MEMBER CARPENTER ABSTAINING), to adopt Resolution No. 105970 (2014 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, approving new policy language in the draft Land Use Element related to the General Hospital Area (GPI 15-12).” Council Member Carpenter returned to the dais at 9:20 p.m. C2 - 10 City Council Meeting Minutes – September 16, 2014 Page 11 Community Development Director Johnson, Contract Planner Kaiser, and Associate Planner Leveille continued their presentation and responded to Council inquires. MOTION BY COUNCIL MEMBER ASHBAUGH, SECOND BY COUNCIL MEMBER CARPENTER, CARRIED 5-0, to adopt Resolution No. 10572 (2014 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, adopting and certifying as accurate the Final Plan Report and directing staff to submit the report to the Strategic Growth Council to close out Grant 3010- 532 to discharge grant obligations for the Land Use and Circulation Elements (LUCE) Update (#GPI/ER 15-12).” Community Development Director Johnson advised that the Airport Land Use Commission has now released 147 pages in comments on the proposed City override and the hearing is scheduled for tomorrow at 1:30 p.m. LIAISON REPORTS Council liaison reports were received from Council Members Ashbaugh, Smith, Vice Mayor Christianson, and Mayor Marx. COUNCIL COMMUNICATIONS Mayor Marx, Vice Mayor Christianson, and Council Member Ashbaugh reported on their attendance at the League of California Cities Annual Conference in Los Angeles at the cities expense. Council Member Carpenter advised that he will contact Mr. Talmage and encourage him to share more information with Council related to a shopping cart retrieval ordinance. ADJOURNMENT The City Council adjourned at 9:46 p.m., adjourned to a Special Meeting to be held on Tuesday, September 23, 2014 at 5:00 p.m. in the City Council Chambers, 990 Palm Street, San Luis Obispo, California, for discussion of labor relation objectives. A subsequent Special Meeting will be held on Tuesday, September 30, 2014 at 5:00 p.m. in the City Council Chambers, 990 Palm Street, San Luis Obispo, California, for discussion of the Land Use and Circulation Element. The next Regular Meeting will be held on Tuesday, October 7, 2014 at 6:00 p.m. in the City Council Chambers located at 990 Palm Street, San Luis Obispo, California. __________________________ Anthony J. Mejia City Clerk APPROVED BY COUNCIL: XX/XX/14 C2 - 11 MINUTES CITY OF SAN LUIS OBISPO SPECIAL MEETINGS OF THE CITY COUNCIL Tuesday, September 23, 2014 Special Meeting – 5:00 p.m. Council Hall, 990 Palm Street San Luis Obispo, California CALL TO ORDER A Special Meeting of the San Luis Obispo City Council was called to order on Tuesday, September 30, 2014 at 5:00 p.m. in the City Council Chambers, located at 990 Palm Street, San Luis Obispo, California, by Mayor Marx. ROLL CALL Council Members Present: Council Members John Ashbaugh, Dan Carpenter, Kathy Smith, Vice Mayor Carlyn Christianson, and Mayor Jan Marx Council Member Absent: None City Staff Present: Katie Lichtig, City Manager, Christine Dietrick, City Attorney, Michael Codron, Assistant City Manager, and Anthony Mejia, City Clerk, were present at Roll Call. Other staff members presented reports or responded to questions as indicated in the minutes. PLEDGE OF ALLEGIANCE Council Member Carpenter led the Pledge of Allegiance. BUSINESS ITEM B1. REVIEW AND APPROVAL OF LABOR RELATIONS OBJECTIVES Human Resources Director Irons, Human Resources Manager Zocher, Richard Bolanos, of Liebert Cassidy Whitmore, narrated a presentation entitled “Labor Relations Objectives” and responded to Council inquires. Mayor Marx called for public comment on the matter, there being no one present desiring to speak to this issue. C2 - 12 City Council Meeting Minutes – September 23, 2014 Page 2 In response to Council inquiries, Mr. Bolanos spoke on the increased number of agencies that are establishing labor relation objectives in open session; explained that establishing defined objectives will assist the City negotiators during labor negotiations. In response to Council inquiries, Human Resources Director Irons explained that staff presented the proposed methodology for the conduct of the employee compensation benchmark study and received no Council direction to compare based on regional agencies. Council Member Smith noted for the record that she desires compensation benchmark data based local labor markets and the proposed labor relation objectives should be more specific in nature. As Council discussion ensued, the majority of Council voiced support for the proposed Labor Relation Objectives listed below, as amended: 1. Maintain fiscal responsibility by ensuring that fair and responsible employee compensation expenditures are supported by on-going revenues. (Fiscal Responsibility) 2. Continue to make progress in the area of long-term systemic pension cost containment and reduction, including reversing the unfunded pension liability trend and other actions consistent with State law. (Cost Containment/Cost Reduction) 3. Continue to effectively manage escalating health benefit costs through balanced cost sharing and other means while maintaining comprehensive health care coverage for all eligible employees. (Cost Containment) 4. As necessary to attract and retain well qualified employees at all levels of the organization, provide competitive compensation as articulated in the City’s Compensation Philosophy, including relevant local, statewide, and national labor market. (Recruitment and Retention) MOTION BY VICE MAYOR CHRISTIANSON, SECOND BY COUNCIL MEMBER CARPENTER, CARRIED 4-1 (COUNCIL MEMBER SMITH VOTING NO), to approve the Labor Relations Objectives (LRO) that will guide labor negotiations with employee groups during 2014 and 2015, as amended. C2 - 13 City Council Meeting Minutes – September 23, 2014 Page 3 ADJOURNMENT The City Council adjourned at 5:56 p.m., to a Special Meeting to be held on Tuesday, September 30, 2014 at 5:00 p.m. in the City Council Chambers, 990 Palm Street, San Luis Obispo, California, for discussion of the Land Use and Circulation Element. The next Regular Meeting will be held on Tuesday, October 7, 2014 at 6:00 p.m. in the City Council Chambers located at 990 Palm Street, San Luis Obispo, California. __________________________ Anthony J. Mejia City Clerk APPROVED BY COUNCIL: XX/XX/14 C2 - 14 The City Council Minutes of September 30, 2014 will be provided under separate cover. MEETING DATE: October 21, 2014 ITEM: C2 C2 - 15 Page intentionally left blank. C2 - 16 City of San Luis Obispo, Council Memorandum Date: October 16, 2014 TO: Mayor and City Council FROM: Anthony Mejia, City Clerk VIA: Katie Lichtig, City Manager SUBJECT: Minutes of the City Council Meeting of September 30, 2014 Attached are the Minutes of the City Council meeting of September 30, 2014. Please let me know if you have any questions. MINUTES CITY OF SAN LUIS OBISPO SPECIAL MEETINGS OF THE CITY COUNCIL Tuesday, September 30, 2014 Special Meeting – 4:00 p.m. Special Meeting – 5:00 p.m. Council Hall, 990 Palm Street San Luis Obispo, California CALL TO ORDER A Special Meeting of the San Luis Obispo City Council was called to order on Tuesday, September 30, 2014 at 4:00 p.m. in the City Hearing Room, located at 990 Palm Street, San Luis Obispo, California, by Mayor Marx. ROLL CALL Council Members Present: Council Members John Ashbaugh, Dan Carpenter, Kathy Smith, Vice Mayor Carlyn Christianson, and Mayor Jan Marx Council Member Absent: None City Staff Present: Katie Lichtig, City Manager, Christine Dietrick, City Attorney, Michael Codron, Assistant City Manager, Community Development Director Johnson, and Anthony Mejia, City Clerk, were present at Roll Call. Consultants Present: Nick Johnson, Johnson Aviation, and Lori Balance, outside Legal Counsel (via teleconference), were present at Roll Call. CLOSED SESSION City Attorney Dietrick requested a Closed Session to discuss the following item listed on the Closed Session agenda. A. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9: No. of potential cases: One. City Council Meeting Minutes – September 30, 2014 Page 2 A point has been reached where, in the opinion of the legislative body of the local agency on the advice of its legal counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the local agency. The existing facts and circumstances exposing the City to litigation include allegations regarding non-compliance with the California Public Utilities Code relating to the City’s certification of an Environmental Impact Report, proposed overrule of the Airport Land Use Commission’s inconsistency determination regarding the City’s General Plan/Land Use and Circulation Elements update project and the City’s proposed adoption of the Land Use and Circulation Elements and Airport Overlay Zone. Letters from the Department of Transportation, Division of Aeronautics, dated September 12, 17 and 19, 2014, and September 18, 2014 letter from the Airport Land Use Commission are available for public inspection at the Office of the City Clerk at 990 Palm Street, San Luis Obispo, California. PUBLIC COMMENT ON CLOSED SESSION ITEM City Attorney Dietrick called for public comment. There was no one present desiring to speak on Closed Session. RECESS Council recessed to Closed Session in the Council Hearing Room at 4:01 p.m. CALL TO ORDER A Regular Meeting of the San Luis Obispo City Council was called to order on Tuesday, September 30, 2014 at 5:00 p.m. in the City Council Chambers, located at 990 Palm Street, San Luis Obispo, California, by Mayor Marx. PLEDGE OF ALLEGIANCE Vice Mayor Christianson led the Pledge of Allegiance. REPORT FROM CLOSED SESSION City Attorney Dietrick advised that Council met on one matter of anticipated litigation related to comments received regarding the City’s proposed course of action to overrule an inconsistency determination, comments were received by the Airport Land Use Commission (ALUC) and Caltrans Division of Aeronautics, and no reportable action was taken. City Council Meeting Minutes – September 30, 2014 Page 3 PUBLIC HEARINGS PH1. REVIEW OF CHAPTER 7 (AIRPORT) AND CHAPTER 8 (SPECIAL FOCUS AREAS) OF THE DRAFT LAND USE ELEMENT, CHAPTER 11 (AIRPORT) OF THE CIRCULATION ELEMENT, AND PROPOSED UPDATES TO AIRPORT RELATED SECTIONS OF THE NOISE AND SAFETY ELEMENTS; AND REVIEW OF PROPOSED AIRPORT OVERLAY ZONE PROVISIONS IN THE ZONING CODE Community Development Director Johnson, Contract Planner Kaiser, Associate Planner Leveille, and Nick Johnson, Johnson Aviation, narrated a presentation entitled “Land Use and Circulation Element Update, Chapter 7, Airport Overlay Zone, LUE Chapter 8, CE Chapter 11, Noise and Safety Elements Amendments” and responded to Council inquires. It was noted for the record that the draft Land Use and Circulation Elements (LUCE), Council Agenda Report, staff memoranda dated September 26, 2014 and September 30, 2014, and public correspondence have been submitted for Council’s consideration. Mayor Marx opened the Public Hearing. Carol Florence, Oasis Associates, noted that she is representing several special planning area property owners; on behalf of NKT Commercial, expressed support for the Foothill and Santa Rosa, University Square Shopping Center, and Upper Monterey planning areas; on behalf of Waste Connection, voiced a desire to work with the City to facilitate the vision for the South Broad Street plan; on behalf of the Kundert heirs, expressed gratitude to the City for moving forward with the rezoning of the “LOVR Creekside” properties; questioned if the west side of the site will remain agricultural, opining that maintenance would be difficult; suggested the following modification to Land Use Chapter 8, LOVR Creekside, to read as follows “As part of development, impacts of a new roadway connection in some form from Los Osos Valley Road to Higuera shall be analyzed;” urged Council support for Planning Commission recommendation for the Broad and Tank Farm area. Carl Dudley, San Luis Obispo, stressed the need for additional workforce housing; encouraged Council to support the recommendations and move forward with adoption of the LUCE. Jerry Rioux, representing San Luis Obispo County Housing Trust Fund, spoke on his experience trying to find affordable housing in San Luis Obispo; urged Council to support the LUCE as presented, opining that it will maximize housing and provide for flexibility related to the Prado Road overpass/interchange. City Council Meeting Minutes – September 30, 2014 Page 4 John Larson, Planning Commission, reviewed the Planning Commission’s recommendation to move forward with the LUCE and Airport Overlay Zone, noting that the Commission believes the City is consistent with the guidance provided by the Caltrans Airport Land Use Planning Handbook. Stephen Peck, representing Avila Ranch, LLC, conveyed appreciation to the City and community for developing the LUCE; opined that staff has responded to Caltrans issues related to the airport area and preserved Council’s right to make land use decisions for the area. Ermina Karim, representing the Chamber of Commerce, acknowledged the City, Planning Commission and community for its participation in the LUCE process; voiced support for the LUCE, noting that it will support growth within the urban reserve line and allow people to work and live in the same area; urged Council to move forward with overruling the ALUC and to retain its right to make land use decisions. Brad Brechweld, representing the Economic Vitality Corporation, voiced support for the Planning Commission recommendation and to move forward with the Airport Overlay Zone; spoke on the importance of creating head of household jobs, workforce housing, and improving circulation. Lenny Grant, representing the Economic Vitality Corporation and RRM Design Group, spoke on the results of a workforce housing survey, noting that the costs of housing may influence people’s decision to leave the area; opined that Residential Zones R-2, R-3, and R-4 will help support the community need for additional housing; suggested that supporting a strong economy will also help support environmental stewardship. Ryan Miller, San Luis Obispo, voiced concerns related to the difficulty of finding housing in San Luis Obispo; stated that his business provides head of household jobs but his employees cannot afford housing. Amy Sinsheimer, speaking on behalf of Central Coast Grown, voiced support for allowing residential development at Tank Farm; recommended that Council require San Luis Ranch to retain 50% agricultural/open space onsite and based on the gross project site. Travis Fuentez, resident of San Luis Obispo County, stressed the importance of maintaining a jobs/housing balance and affordable housing, encouraged Council to support the LUCE as proposed. Robert Kinports, San Luis Obispo, expressed concern related to the affordability of housing, noting the workforce is traveling from Santa Maria and North County impacting the environment; suggested that the Land Use Element be modified to allow San Luis Ranch to convert a portion of agricultural land to park space. City Council Meeting Minutes – September 30, 2014 Page 5 Dave Juhuke, LUCE Task Force member, opined that additional housing is a critical component of the LUCE and will help achieve a job/housing balance; urged Council to support proceeding with an overrule of the ALUC. Steve Devencenzi, Planning Director of San Luis Obispo Council of Governments (SLOCOG), conveyed that housing is a critical issue for the region; expressed concern about the cost of the 101 expansion; stated that his staff has analyzed the LUCE and found it to be consistent with the SLOCOG Board policies. C.R. Lara, Atascadero, noted that the hospitality industry is expanding and encouraged Council to be mindful of the workforce’s housing needs. Donald Hedrick, San Luis Obispo, voiced opposition to mixed use projects, asserting that such projects cause noise and fumes from commercial uses to impact residents; opined that the encouraging the student population to remain on campus will help address the need for housing. Roy Garcia, San Luis Obispo, expressed concern related to developing in flood prone areas and during drought conditions. Mila Vujovich-LaBarre, San Luis Obispo, voiced concerns related to Council certifying the LUCE Environmental Impact Report prior to resolving issues related to the Airport Overlay Zone; opined that LUCE should be modified to address safety concerns raised by the ALUC and Caltrans; asserted that moving forward with housing in the airport area will put passengers and residents at greater risk; stated that Prado Road should be a two-lane road with a center turn lane; opined that developers be required to fund infrastructure improvements, including roads and a new fire station; stated that an EIR is needed for the Margarita Area Specific Plan amendments; urged Council to maintain the Damon Garcia sports park and improve multi-modal transportation. Marshall Ochylski, representing San Luis Ranch, suggested that Council modify the San Luis Ranch Performance Standards Chart to eliminate reference to 65.5 acres and replace with 50% related to agricultural/open space; opining that the modifications will allow for flexibility, maximize housing, and improve multi-modal transportation and infrastructure. Eric Meyer, Chair of the LUCE Task Force, noted that participation by the community, LUCE Task Force, and Planning Commission has resulted in the proposed LUCE. There being no others desiring to speak on this item, the Public Hearing was closed. City Council Meeting Minutes – September 30, 2014 Page 6 In response to public comment, Community Development Director Johnson explained that Council certified a Program Environmental Impact Report for the Land Use and Circulation Elements, noting such action does not authorize any specific developments; advised that future General Plan Amendments, Rezones, and Specific Plan Amendments within the airport overlay zone would be referred to the ALUC for a consistency determination. In response to public comment, Outside Special Counsel Lori Balance explained the concept of a No Plan Zone, advising that the City of San Luis Obispo would not be considered a No Plan Zone regardless of moving forward with an overrule of the ALUC inconsistency determination. In response to public comment, Mr. Nick Johnson advised that flight paths transverse all areas of the airport area, therefore disclosure documents are provided to potential property owners to ensure they are aware of airport operations in the area. RECESS Council recessed at 6:50 p.m. and reconvened at 7:02 p.m., with all Council Members present. Community Development Director Johnson advised that a compendium of amendments to the draft Land Use and Circulation Elements will be prepared for the October 21, 2014 Council meeting. As Council discussion ensued the following direction was noted: 1. Council made no additional amendments to Chapter 7. 2. Circulation Element Chapter 11.0.1 should be amended to read as “The City shall support and encourage expansion of air transportation services, as forecasted in the Airport Master Plan and approved by the FAA (Federal Aviation Administration). 3. It was suggested that Circulation Element 11.1.4 be amended to read as “The City shall work with the County Airport Land Use Commission to complete its updates to the Airport Land Use Plan for the San Luis Obispo County Airport and encourage them to utilize objective verifiable data, expert advice, best practices and modern technology, as they consider adjacent urban land use impacts, noise and safety zones, and requirements of state law regarding climate change.” It was agreed by Council majority to not move forward with the suggested amendment except to strike “its” and inserting “updates.” City Council Meeting Minutes – September 30, 2014 Page 7 4. Draft Zoning Code Chapter 17.57.020 (Airport Overlay Zone, Applicability) should spell out the acronym “RPZ” (Runway Protection Zone) and be amended to read as “Regulations in this Chapter shall apply to all uses, activities, and existing and proposed development on properties within Safety zones S-1b, S-1c and S-2 designated in the ALUP. New development and land uses within the RPZ and S-1a ALUP Safety Zones shall be consistent with provisions of the ALUP, unless the City overrides a determination of inconsistency by the Airport Land Commission as allowed under Section 21675.5 et. seq. of the Public Utilities Code. Should an override action by taken, the City shall ensure that development is consistent with direction in the State Aeronautics Act, the FAA regulations, and guidance provided in the Caltrans division of Aeronautics Airport Land Use Planning Handbook.” Council further directed staff to reorganize the structure of this section to improve clarity. 5. Land Use Element Chapter 7 (Airport) and the Safety Element should be globally amended to reflect throughout: if overrule occurs the City is consistent with the State Aeronautics Act, with guidance from the Caltrans Airport Land Use Planning Handbook. 6. Land Use Element Chapter 8 (Special Focus Areas), Introduction, be amended to include “North Side of Foothill (Bishop Knoll)” in the list of special planning areas. 7. Land Use Element Chapter 8 (Special Focus Areas), San Luis Ranch Specific Plan Area, Performance Standards Chart, should be amended to eliminate reference to Minimum Open Space/Agriculture 65.5 ac, replace with minimum 50%, and delete column % of site. Type 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 Hotel/Visitor- serving 200 rooms Parks PARK 5.8 ac Open Space / Agriculture OS AG Minimum 50% 65.5 ac Minimum 50%1 No maximum Public n/a Infrastructure n/a City Council Meeting Minutes – September 30, 2014 Page 8 *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 substantial multiplier for the amount of open space is provided for the off-site property exchanged to meet the on-site requirement; and Off-site land is of similar agricultural and visual value to the community; and Off-site land is protected through an easement, dedication or fee title in perpetuity for agriculture/open space. It was suggested that the above footnote and asterisk be deleted. It was agreed by Council majority to not move forward with the suggested amendment. Community Development Director Johnson pointed out that referencing only a “% of site” is defined as the percent of each site dedicated for open space, using the gross project site. Council Member Ashbaugh noted for the record that he believes the San Luis Ranch land owner is making a sincere effort to meet the City’s competing values for workforce housing and maintaining our open space. 8. Land Use Element Chapter 8 (Special Focus Areas), Avila Ranch Specific Plan Area, Performance Standards Chart Footnote1, should be amended to read as “Up to 1/3 of the open space may be provided off-site or through in- lieu fees consistent with the Airport Area Specific Plan. Required Open Space may be reduced up to 30% of the site proportionally to the amount of affordable housing provided on-site in a ratio consistent with the Regional Housing Needs Allocation beyond inclusionary housing requirements.” 9. It was suggested that Land Use Element Chapter 8 (Special Focus Areas), Upper Monterey, Item F, be amended to read as “The City will work with local hotels and Cal Poly to develop enhanced meeting rooms and conference facilities. These types of facilities would not be located on the east side of Monterey north of California Street, nor is a stand-alone conference center is appropriate for this area. unless adequate buffers and noise mitigation measures are required to protect the creek and the established neighborhood east of the creek. A conference center in conjunction with a hotel is appropriate for this area, but not a stand-alone conference center.” It was agreed by Council majority to not move forward with the suggested amendment except to strike the word “…is appropriate for this area.” City Council Meeting Minutes – September 30, 2014 Page 9 10. Land Use Element Chapter 8 (Special Focus Areas), Sunset Drive-In Theater/Prado Road Area, Paragraph 1, should be amended to read as “This 38-acre area should be further developed only if flooding can be mitigated without significant harm to San Luis Obispo Creek. Until flood hazards are mitigated, continued agricultural use and low-intensity recreational use are appropriate. Any use drawing substantial regional traffic also depends on providing needed infrastructure at Prado Road, and extending Prado Road to connect with Madonna Road, and realignment of Elks Lane. During the course of discussion, Council questioned: 1) potential alterations to the existing intersection of Foothill/Chorro/Broad and the desirability of modifying the intersection of Chorro and Foothill (Land Use Element Chapter 8, Special Planning Area, Foothill Boulevard/Santa Rosa Area); and 2) the issue of provision of a Prado Road overpass versus full interchange. Council requested that staff provide an overview of both areas as part of the Circulation Element discussion and continued the Public Hearing to October 7, 2014 at 6:00 p.m. ADJOURNMENT The City Council adjourned at 8:34 p.m. The next Regular Meeting to be held on Tuesday, October 7, 2014 at 6:00 p.m. in the City Council Chambers, 990 Palm Street, San Luis Obispo, California. __________________________ Anthony J. Mejia City Clerk APPROVED BY COUNCIL: XX/XX/14