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HomeMy WebLinkAbout05/20/2003, BUS 1 - ANNUAL REPORT ON THE GENERAL PLAN FOR 2002 council Maew,D� Mav 20. `03 acEn6A uEpoPt It."..b� CITY OF SAN LUIS OBISPO FROM: John Mandeville, Community Devel ment Dire Prepared By: Michael Draze, Deputy Director SUBJECT: ANNUAL REPORT ON THE GENERAL PLAN FOR 2002 CAO RECOMMENDATION (1) As recommended by the Planning Commission, accept the Annual Report on the General Plan (2) Give staff direction for any desired follow-up or changes from previously approved Council priorities. DISCUSSION The General Plan provides a comprehensive, long-range vision focusing on preserving community resources and meeting community needs. The General Plan provides a basis for rational decision-making regarding the City's long-term physical development. The General Plan is adopted and amended by the City Council, after considering recommendations by citizens, appointed advisory bodies, other agencies, and City staff. The City publishes an annual report on the status of its General Plan and actions taken to implement it. The report is to help citizens and City officials understand recent actions involving the General Plan. The annual report is done in part to comply with State law, which says that "the planning agency shall ... provide an annual report to the legislative body on the status of the general plan and progress in its implementation, including the progress in meeting its share of regional housing needs..." (California Government Code Section 65400). San Luis Obispo's approach has been for staff to draft the report, and present it to the Planning Commission for review and direction before presenting it to the City Council, which is the legislative body. The General Plan itself also calls for an annual report, to be completed during the first quarter of each calendar year (Land Use Element policy 9.3). According to this policy, the report is to include the following items. A. A summary of private development activity and a brief analysis of how it helped meet general plan goals; B. A summary of major public projects and a brief analysis of how they contributed to meeting general plan goals; C. An overview of programs, and recommendations on any new approaches that may be necessary; D. A status report for each general plan program scheduled to be worked on during that year, including discussion of whether that program's realization is progressing on schedule, and recommendations for how it could better be kept on schedule if it is lagging; E. A status report on how the City is progressing with implementing its open space preservation policies and programs; F. Updated population or other information deemed important for the plan. Council Agenda Report—General Plan Annual Report 2002 Page 2 Key Implementation Issues The Planning Commission and the City Council use the Annual Report as a basis for deciding any direction to be given to staff, to change priorities for implementation efforts or to prepare possible General Plan amendments for hearings. Four key.issues discussed in the Annual Report are: • Accommodating housing construction at locations and rates allowed by General Plan policies, especially housing affordable to people working in San Luis Obispo, and considering State mandates; • Completing specific plans for the Airport Area, the Margarita Area, and the Orcutt Area in forms acceptable to property owners and the Airport Land Use Commission; • Addressing concerns brought on by the recent upheavals in the medical provisions field that adequate large medical office space is not available in areas where the City allows such uses, and that this encourages doctors to relocate to the Five Cities and Templeton areas; • Addressing the issues raised by the apparent build out of the Auto Parkway area and the resulting lack of ability to offer incentives for other dealers to relocate out of other, less appropriate business areas in the City. PLANNING COMMISSION RECOMMENDATION Staff presented a draft Annual Report to the Planning Commission on March 26, 2003. No public testimony was offered. After discussion, the Planning Commission voted unanimously to forward the report to the City Council with two comments: 1) The City should address the financial benefits of General Plan changes encouraging expansion of sites for auto dealers as well as the location of large retail outlets. Staff Comment: Although this issue is discussed on page 16 of the Annual Report, the Planning Commission's comment recognizes the importance of auto dealerships and large retail stores to the City_ Any expansion of the existing sites for these uses or changes in the way the present policies are being administered would require Council direction and budget priority adjustments. It should be noted, however, that the Council has already approved two work programs to implement Major City Goals related to improved transient occupancy tax and sales tax, including opportunities for added auto sales and relocation. Therefore, direction has already been provided to initiate further efforts, without changing the existing General Plan. If these efforts prove inadequate, then with next year's Annual Report, staff may seek added direction, especially concerning the Auto Center area. 2) The City should accelerate the review of changes needed in the General Plan to allow larger medical offices in areas where they are not now allowed, and the possibility of allowing other low-impact office uses in the Services & Manufacturing categories. �� a Council Agenda Report—General Plan Annual Report 2002 Page 3 Staff Comment: This issue was discussed on page 13 of the Annual Report and the Planning Commission's concern is that the issue needs to be addressed sooner rather than later. The medical community's problems are complex and it is not clear how to most effectively address them. Previously, the City Council asked that the Economic Development Manager provide her insights regarding this issue as a part of this Annual Report (see Attachment 3). Ms. Stanwyck's memorandum provides anecdotal information regarding her practical "in the field" experience in locating medical office uses in San Luis Obispo. Her observations are not intended to consider all of the General Plan policies that may bear on this issue. However, she does offer some suggestions for Council consideration. The Planning Commission did make it clear that they did not favor simply opening up all areas to medical office uses but would support some changes to the areas where the general plan allows these offices. Any effort to resolve a situation of this complexity will require a significant shifting of present staff workload priorities. FISCAL IMPACT The Council's giving direction on priorities would not by itself change previously established budgets or staff resources. The Council could direct staff to shift resources from current projects to new priorities. Such changes, depending on size, could require separate action, especially if the overall amount of work needed to increase. Such actions are usually taken as part of the Council's goal-setting and budgeting processes. Because the Council has just completed the goal setting process, and priorities have therefore already been established, staff is not recommending new major initiatives at this time. ALTERNATIVES The Council may: • Direct staff to make further additions or changes to the Annual Report; • Direct staff to return with a work program to accomplish one or both of the programs commented on by the Planning Commission with the understanding that other priorities will need adjustment; • Not accept Planning Commission comments; • Continue action. Attachments #1 —Draft Annual Report #2—Draft Planning Commission minutes, March 26, 2002 #3—Economic Development Manager Memo on Medical Offices JAGMATTESO\gp annual report\2002car.doc � � 3 1i `Q�'13'll M'11171 annual izepoRt on the qjeneizat plan. 1 1 � dna, ,�E�`�t,B-.�✓'•4�,h�'�. ��'^ b.'.r ~!v �.� �._,^^..=.VJ'{:s-.� ^ � L[�- L•-�i'��L��S ter,. -�4� 1... F _,. rv. �-`?''i.ri. .'.yY.�"�,��•, -,�r.�_.,�•,,,=�r_ . ,/- 111 011,:..... ....-� .,..-/. r +.��.�`:.Y •�� �_ ''� tij .X91=0.. :W.� 'L :�a iI'-. -�, ��- --`_•'pain._._._ i This report was prepared by the Community Development Department, for review by the Planning Commission and acceptance by the City Council. The Community Development Department's Long-range Planning Division often takes the lead for staff work involving the General Plan. However, all City departments and commissions are involved in General Plan issues and contribute to the plan's implementation. City of San Luis Obispo COMMUNITY DEVELOPMENT DEPARTMENT Our Mission Statement Our mission is to serve all persons in a positive and courteous manner and help ensure that San Luis Obispo continues to be a healthy, safe, attractive, and enjoyable place to live, work, or visit. We help plan the city's form and character, support community values, preserve the environment, promote wise use of resources, and protect public health and safety. Our Service Philosophy The City of San Luis Obispo Community Development Department staff provides high quality service when you need it. We will: • Listen to understand your needs; • Give clear, accurate and prompt answers to your questions; • Explain how you can achieve your goals under the City's rules • Help resolve problems in an open, objective manner; • Maintain high ethical standards; and • Work to improve our service. Report reviewed by the Planning Commission March 26, 2003, and accepted by the City Council (date] Cover photos: The issue of housing supply received a great deal of attention in 2002, and is expected to remain in the public eye as the City updates its General Plan Housing Element in 2003. Top right: a major student-housing complex under construction at Cal Poly. Bottom right: "infill"houses under construction on McCollum Street, near Cal Poly. Left: at the foot of the Irish Hills, the former DeVaul Ranch is converted to a range of dwelling types. 1 � � city of San Luis OBispo� Genepa N n annual aepout 2002 Report at a Glance Introduction Page 4 The General Plan is a long-range vision focusing on the city's physical development. It is adopted by the City Council after public participation. Administration of the General Plan General Plan Status Page 4 In response to State law, the City has adopted ten elements of the General Plan, seven of them addressing required topics.. Element Updates Page 4 An update of the Conservation Element was brought to hearing, and work started on an update of the Housing Element. Amendments Page 5 The City adopted several relatively minor changes to policies concerning land use and water supply. Implementation of the General Plan Development & Population Housing & Residents Page 6 Housing completions have been about half of the General Plan's target, with few new rental projects,but construction activity is increasing. City population is growing at about the same pace as the number of dwellings. Commercial Development & Daytime Population Page 6 Commercial and industrial construction continues to outpace housing and the preferred growth rate, though permit activity has slowed. Growth Management Residential Growth Management Page 9 Housing development in large annexations is subject to a citywide phasing schedule. Building permits for those areas and for other parts of the city are departing somewhat from policies and previous assumptions. Commercial and Industrial Growth Management Page 9 Thresholds for considering action have been exceeded, but no direct limits on the pace of commercial development have been set. Affordable Housing Page 11 Several zoning and long-range planning efforts set the stage for substantial additions to the supply of modest and controlled-price housing. Open Space Protection Page 11 Conservation guidelines for City-owned open space were adopted, and open space in the Irish Hills was annexed. Historic Preservation Page 11 An additional property was designated as historic. Annexations Page 12 Annexations along Broad Street in the Airport Area extended City jurisdiction over proposed commercial sites as well as development built in the County. �- la City Of sail LUIS OBispO 2 GenevAl plan annual REpORt 2002 Major Implementation Plans Page 12 Margarita Area Page 12 A draft specific plan for this 420-acre area was undergoing revisions in response to determinations by the County Airport Land Use Commission and proposed changes to the draft Airport Area Specific Plan. Airport Area Page 13 Formal review of the draft specific plan began. It covers 1,000 acres, including the airport itself, a former oil-tank area slated mostly to be a natural preserve, and sites where commercial and industrial development has been occurring under County jurisdiction. Orcutt Area Page 13 Staff worked with the owners in this 230-acre area to reach agreement on basic features that could lead to a draft specific plan, which the Council endorsed as the starting point for environmental review. Most of the area is undeveloped and slated for residential use. Formal review of the draft plan will begin in 2003. Waterways Management Plan Page 13 The City Council endorsed a draft plan for environmental review. Upstream stormwater detention on San Luis Obispo Creek and several channel changes and habitat enhancements will be considered. Water and Wastewater Master Plans Page 13 The City Council approved plans outlining how water and sewer service will be provided to new development areas, and made more reliable and efficient in existing neighborhoods. Traffic and Circulation Walking and Cycling Page 14 Progress was made in extending the bicycle paths. Transit Service Page 15 The downtown bus transfer center was reworked for safety and convenience. Neighborhood Traffic Management Page 16 Three "speed tables" were installed on Augusta Street to slow traffic. Access and Parking Management Page 16 The Access and Parking Management Plan was updated, the Marsh Street parking garage was expanded to provide an additional 245 spaces, and development fees and hourly rates for downtown parking were raised to help pay for new parking and access projects. Neighborhood Quality Page 16 New architectural guidelines and property-maintenance standards were adopted. . city of san lues osispo' - s GeneuaL plan annual uepout 2002 Parks & Recreation Page 16 A joint-use agreement with the County enabled improved softball fields, and construction of the Damon-Garcia Sports Fields was approved. Sub-area Planning & Development Page 16 Concerning the downtown, the City finished a garage expansion and completed environmental review for major commercial and civic development proposal. The Council authorized staff to pursue funding for a Broad Street corridor plan. Other Agencies' Activities Page 16 The Airport Land Use Plan Page 16 The independent Airport Land Use Commission adopted a revised plan that would accommodate less housing in the Margarita Area than previously planned, but potentially more in the Orcutt Area. The City must make its General Plan conform to the revised plan, or make specific overrides. Program Status Page 17 The General Plan contains a wide array of programs, some carried out routinely and others needing special action. City budgets usually determine timing. For More Information Page 19 Come in, write, call, or visit the City's Web site to learn more about the General Plan and the City's planning activities. city of san Luis omspoa gene►iaL plan annual aepotzt 2002 Introduction The General Plan provides a comprehensive, long-range vision focusing on preserving community resources and meeting community needs. The General Plan provides a basis for rational decision-making regarding the City's long-term physical development. The General Plan is adopted and amended by the City Council, after considering recommendations by citizens, appointed advisory bodies, other agencies, and City staff. Each year, the City publishes an Annual Report on the status of its General Plan and actions taken to implement it during the year just ended. This report is to help citizens and City officials understand recent decisions involving the General Plan. It fulfills the requirements of state law, and the General Plan itself, which call for an annual report. The Community Development Department provides a separate Annual Report on all of its activities, emphasizing statistics on planning and building applications, public meetings, and code enforcement. Administration of the General Plan General Plan Status State law requires each city and county to adopt a general plan that addresses seven topics. Additional topics may be included. Each topic may be addressed in a separately published document, or topics may be combined. The published sections of the General Plan are called "elements." Table 1 shows the status of the City's General Plan elements. The City maintains a General Plan Digest that makes all policies and programs available in one document. State law says the General Plan should be kept current. This is done through comprehensive updates, and through amendments. Updates for an element are usually undertaken at least five years apart. They look at underlying conditions and preferences. Amendments are typically smaller in scope and involve changing one part in a way that fits with the overall framework. Consideration of amendments is triggered by private applications or by direction from the City Council. Changes to the General Plan require hearings by the Planning Commission and by the City Council. The type of notice provided for the hearings depends on the type of proposed change, but always includes a descriptive item on the meeting agenda, which is published in the newspaper. The City's Web site and public access television channel provide additional information. Element Updates No element updates were completed. The City published and the Planning Commission began hearings on a proposed update that would consolidate policies on conservation found in the current elements titled conservation, energy conservation, open space, land use, and housing. With initial City Council direction, staff began work on the State-mandated update of the Housing Element. 1 ^9 city of san Luis oaispo 5 Geneaal Klan annual uepout 2002 Table 1 General Plan Elements Element Required or Date of Adoption Comment Optional or Major Revision Land Use Required 1994 Housing Required 1994 Update to be considered in 2003. _ Circulation Re quired 1994 Includes "Scenic Roadways." Noise Required 1996 Conservation Required 1973 Update combining these topics Energy Conservation Optional 1981 with Open Space is in progress. Open Space Required 1994 Safety Required 2000 Includes former Seismic Safety Element. Parks & Recreation Optional 2001 Water& Wastewater Optional 1996 State law requires an "Urban Water Management Management Plan," but it need not be part of the general plan. Amendments The City approved the amendments listed in Table 2. No map changes were considered. Since the 1994 updates, there have been no major citywide changes or overall patterns among the individual changes that suggest a comprehensive re-evaluation of goals or policies is necessary at this time. Table 2 General Plan Amendments in 2002 Type Location or Subject Change Area Initiated by; comment acres Land Use Timing of park Allow park and sports fields not City; to allow the Damon- Element text development in the development before the specific applicable Garcia Sports Fields to Margarita Specific plan is adopted proceed if the specific plan Plan Area is further delayed. Water& Accounting for water Eliminate requirement for not City; to economize on Wastewater use and supplies reliability reserve, and revise applicable supplemental water Management policies concerning retrofitting, requirements, and to clarify Element text reclaimed water, and siltation. intent. Ho city of san LUIS OBISPO�— 6 r4enepal-plan annual REPORt 2002 Implementation of the General Plan Development & Population Housing & Residents In summary, the General Plan says city population, and therefore housing supply, should grow at about one percent per year. New housing should include a variety of housing types, and dwellings affordable to low-income and moderate-income residents. Table 3-A summarizes residential construction. Annual increases in the number of dwellings have averaged about one- half percent. Residential construction in 2002 was dominated by single-family tract houses, though development included custom houses, a mid-size apartment project, and several additions of apartments to sites with older houses. Some projects containing restricted-price affordable dwellings moved forward, but none were completed. The table reflects only construction within the city limits; there has not been substantial housing construction on land around the city, though in 2002 Cal Poly proceeded with construction of an on-campus project that is expected to house 800 students (equivalent to about 348 dwellings) when completed in 2003. Housing conservation helps balance supply and demand and preserve community character. Zones that allow office and commercial uses contain several older dwellings. In 2001, the Planning Commission had recommended requirements for developments to preserve or replace some housing in the downtown; in 2002 the City Council postponed action until consideration of the Housing Element update. The city had 44,426 residents on January 1, 2002, according to the California Department of Finance estimate. This was an increase of one-half percent over the revised estimate for 2001. (The estimate for January 1, 2003, is not expected to be available until May 2003.) Commercial Development&Daytime Population San Luis Obispo's daytime population includes those who work in the urban area or who come as students, shoppers, and tourists. A precise estimate of daytime population is not available but it is known to substantially exceed resident population, according to U.S. Census and traffic- count data. Roughly 20,000 people commute to jobs within the city and adjacent areas such as the Airport and Cal Poly. General Plan policy LU 1.4 says that the gap between housing demand, due to more jobs and college enrollment, and housing supply should not increase. This overall direction is supplemented by policy LU 1.11.4, which says the City will consider setting nonresidential construction limits if the amount of nonresidential floor area increases faster than five percent over five years, excluding the first 300,000 square-feet built after 1994 (a threshold reached in 1997). Table 3-B summarizes nonresidential construction since 1994. (The table reflects only construction within the city limits. Projects at Cal Poly or in the unincorporated parts of the Airport Area, for example, are not included.) The year 2002 saw completion of several mid-size office and commercial buildings, as well as demolition of a theater and stores in Madonna Road Plaza to make way for replacements. Also, a large church was demolished to make way for medical offices that were not built during the year. As the table shows, nonresidential floor area has increased faster than five percent during the last three five-year periods, even with the 300,000-square-foot exclusion. Overall since 1994, nonresidential floor area has increased about three times faster than the number of dwellings, though permits issued in 2002 indicate this disparity may be getting smaller. l� ll ,� M m •• � � In d; In 3 � I 1000000 ,, O �O v C7 c�a/ N y CQ FI.I In C) m v r ;' h 00 Op ° co a n n to In In d aEi u y 0 C L. 0 0 0 0 0 0 0 0 .w W i o+ "' Oi 00 00 w O M M .^. 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C7, O N O � Z iLL t � 13 city of sin Luis osispo q rene-RaUptan annual tzepont 2002 Growth Management Residential Growth Management Residential growth management policies are implemented through phased housing construction in large annexations the City has approved or is considering (map, page 18). The phasing system is based on issuance of building permits to specific expansion areas, during three-year intervals, as shown in Table 4. During the first three-year interval, permitted construction and housing losses in areas not subject to the limits were very close to the assumed amounts. While the Irish Hills areas had started, they had not proceeded as quickly as allowed and the Margarita Area had not begun development, due to delays in adopting the required specific plan. Again in 2002, Council approval of an adjustment to the phasing schedule allowed the Irish Hills areas to pursue completion sooner than previously shown, without increasing the citywide growth rate above previous targets. For the current interval, the year 2002 saw more in-city dwellings permitted than assumed for the entire three-year period. The pace of demolitions was slightly higher than assumed. Substantial amendments to the phasing schedule probably will be considered before the end of the 2002-2004 interval, due to: • more rapid development of sites within the city, zoned for housing, than assumed; zoning amendments to enable additional in-city housing development sites; • changed capacities of specific plan areas (see pages 12 and 13); revisions to the Housing Element in response to State mandates for the region. Commercial and Industrial Growth Management The General Plan contains policies on the pace of nonresidential development and its relationship to housing growth, but there are no direct limits on the rate of nonresidential construction. One policy says the City should consider setting such limits when nonresidential floor area has increased faster than five-percent during a five-year period. That threshold has been exceeded in the periods ending in each of the last four years (Table 3-B). In 2001 and 2002 the City Council considered the issue, but rejected setting specific limits on the pace of nonresidential development. It appears that medical office space and large retail stores will dominate nonresidential development for the next few years, keeping up an overall pace in line with recent five-year trends, while construction of buildings for telecommunications and light manufacturing will slow due to conditions in those economic sectors. City of San LUIS OBlspo C to q .. Rdl plan annual R6p012t 2001 Table 4 Residential Growth Management Phasing Status Number of Dwellings Authorized by Building Permits a, b 1999 - 2022 Calendar year intervals: 1999-01 2002-04 2005-07 2008-10 Total f Demolitions a assumption -40 -40 -30 -30 -220 actual -46 -14 New in-city assumption 290 110 100 100 1,000 actual 312 131 Dalidio allowed 0 0 180 0 180 actual 0 0 Irish Hills North allowed 190 80 0 0 270 actual 176 0 Irish Hills South allowed 53 70 0 01 123 actual 46 11 Orcutt allowed 0 70 90 215 640 actual 0 0 Margarita allowed 77 275 235 310 1,200 actual 0 0 Other annexations assumption 0 20 301 30 200 actual 0 0 Tar et maximum total dwellings permitted 570 590 605 625 3,398 actual 488 128 Annual percent change, target d 1.01 1.02 1.01 1.01 0.69 Annual percent change, actual 1 0.871 0.68 Exempt affordable dwellings permitted a 691 20 Total non-exempt and exempt dwellings 1 5571 148 Notes: (a) Dwellings affordable to residents with very low or low incomes, as defined in the Housing Element,are exempt. (b)This is a simple count of dwellings and is not meant to reflect the Zoning Regulation's method for calculating fractional dwellings. (c) Includes the incorporated area in 1994 and certain annexations during 1994- 1998 (Stoneridge; Prefumo Homes;and the EI Capitan, Goldenrod, and Fuller Road parts of the Edna-Islay Specific Plan,which has its own growth management provisions). (d)A calculated result, assuming that the maximum amounts are achieved in previous intervals. (e) Includes losses from fire, use conversion, and moving out of the city. (f) Columns for years 2011 through 2022 have been omitted for formatting reasons only. (g) Some permits actually issued in 2002 were accounted for in 2001. l - ls city of san Luis osispo n generzal NLan annual Repout 2002 Affordable Housing In 2002, the City did the following in support of affordable housing or special-needs housing: • Continued to administer the Inclusionary Housing Requirement, resulting in collection of $464,900 in fees for the City's Housing Trust Fund, to be used for affordable housing projects; • Continued to contribute to operation of the Orcutt Road homeless shelter and the Prado Road homeless services center; • Used $52,300 of Community Development Block Grant funds to help finance low- income apartments and to repair or replace windows in low-income apartments, as an energy-saving measure; • Revised the Residential Growth Management phasing schedule to accommodate the Irish Hills (DeVaul) development containing affordable dwellings, which was ready to proceed; • Worked with a developer of the Irish Hills (DeVaul Ranch) area to implement a lottery for 14 affordable dwellings to be occupied in 2003. • Initiated the process to designate for multifamily housing some vacant, industrially designated land on Orcutt Road; • Negotiated with the Airport Land Use Commission to maintain the potential for small-lot and multifamily housing in the Margarita Specific Plan Area; • Endorsed a land-use concept for the Orcutt Specific Plan Area that would accommodate small-lot and multifamily housing, and make up for lost capacity in the Margarita Area. Open Space Protection A basic General Plan goal is protecting the open land outside the City's urban reserve line, which is the adopted growth boundary, as well as sensitive lands within the urban area. The Land Use Element, Open Space Element, and Conservation Element address this subject in detail. In 2002, the City did the following. • Annexed the Irish Hills Open Space, including the 154-acre Foster property, to enlarge . the Irish Hills Natural Reserve (map, page 18); •_ Adopted Conservation Guidelines for City-owned open space; • Removed several obstructions to fish passage in San Luis Obispo Creek and its tributaries, including an obsolete dam near the base of Cuesta Grade. Historic Preservation The Council designated one additional historic property, affirmed that two other buildings were significant and their location was an integral part of their significance, and called for an independent analysis of cultural resources at the site of a proposed commercial project. City of san Luis osispo U 12 Geneuat Fran annual, aeporzt 2002 Annexations Annexations expand the area over which the City has land-use authority, which is a fundamental way to implement the General Plan. Annexations can also increase development potential, open space protection, City tax revenues, space for City facilities, and service demands and costs. In general, annexations require approval by the property owner, the City, the County, and a separate countywide body called the Local Agency Formation Commission (LAFCo). During 2002, the following annexations were completed (map, page 18): • The Creekside property west of Broad Street opposite El Capitan Way, a six-acre site that was fully developed with offices (Airport Area); • The Cannon office park project west of Broad Street and south of Tank Farm Road, a six acre site that was mostly vacant (Airport Area) • The Irish Hills open space reserve, consisting of 197 acres west of the Royal Way area. Annexation and development of the Dalidio property continued to be the subject of discussion between the applicant, the County, and the City. Discussions resulted in the applicant, who had also applied to the County, filing a revised proposal with the City. That proposal may entail changes to the General Plan Land Use Map, which are likely to be considered in 2003. Major Implementation Plans Specific plans, and other types of plans for sub-areas of the city, often bridge between the General Plan and subdivisions or construction plans. The General Plan requires specific plans for certain major new development areas. It encourages sub-area plans for some largely developed parts of the city that have particular limitations or opportunities. Specific plans typically contain more detailed land-use and design standards than the General Plan, and address the timing and financing of public facilities. They can supersede the Zoning Regulations, or lead to changes in them. The process for adopting a specific plan is similar to the process for adopting or amending a section of the General Plan. Margarita Area The Margarita Area contains about 418 acres in the south-central part of the urban area (map,8). The City has counted on the Margarita Area to provide a large share of the dwellings needed to balance projected job growth. A draft specific plan and an environmental impact report (EIR) were made available for public review at the start of 2002. The area is within the jurisdiction of the independent Airport Land Use Commission (ALUC), which is charged with assuring compatible land uses near the airport. Intensive residential development in the airport vicinity was a serious concern. During much of 2001 and 2002, the City and the ALUC had been trying to find an approach that would meet both agencies' goals for the area. That effort culminated in June 2002 with the ALUC making major revisions to its plan, while the City worked on revising the draft specific plan to conform. At the end of 2002, the revised draft Margarita Area Specific Plan was nearly ready for public review, with some storm drainage and circulation details to be resolved. In comparison with the previous draft, the revised plan would have fewer dwellings (but still a substantial number), more level-ground open area, and a larger business park, but no school. " lei city of San Luis OBISPO 13 cenEaal plan annual R6poRt 2002 Airport Area The Airport Area Specific Plan would cover about 1,000 acres immediately south of the Margarita Area (map, page 18). At the start of 2002, a draft specific plan and EIR were made available for public review. Almost one-third of the area would be open space; the rest would be for commercial, industrial, or airport uses. At the end of 2002, in response to comments from property owners and others, city staff was outlining changes for consideration, including: • Adjusting land-use boundaries and including more explicit development standards, to conform with the independent Airport Land Use Commission's revised plan; • Relying on storm drainage detention for individual sites or sub-areas, rather than one facility for the entire planning area; • Replacing some proposed Business Park designations with broader industrial designations; • Reducing and re-allocating costs for public facilities. These changes; along with changes to the draft Margarita Area Specific Plan, will require supplemental work on the environmental impact report, which will be combined with responses to comments. An issue raised in the context of the Airport Area is: how well does the General Plan policy of favoring medical offices near hospitals meet the goal of San Luis Obispo remaining the county hub for medical services? Because of the policy, medical offices are not allowed in Services and Manufacturing or Business Park. This whole issue developed because of recent changes in the provision of medical services. It is claimed that doctors are being.forced to consolidate into larger practices to address the economics created by the new medical reality. The concern is finding adequate space for large medical offices in the land use designations where they are currently allowed. One response that could be further considered is to allow medical services in other designations, such as Services and Manufacturing or Business Park. This could allow medical offices to locate in existing available spaces and avoid the draw toward the Five Cities and Templeton areas. While available existing space and vacant land with these designations is mainly in the Airport Area, the issue of adequate space for medical offices should involve citywide evaluations. Orcutt Area The Orcutt Area Specific Plan would cover about 231 acres in the southeastern part of the urban area. Almost half the area would be open space or parks. The rest would accommodate up to 979 dwellings of various types, according to the specific plan draft that was prepared at the end of the year by a consultant retained by some of the property owners.. During 2002, that consultant and city staff spent much time and effort working with all the Orcutt Area property owners. In October the City Council endorsed a conceptual land use layout for the Orcutt Area, and directed staff to proceed with preparation of a specific plan and environmental impact report. A major issue emerging in planning for future residential development in the southern part of the city is how additional elementary school enrollment will be accommodated, if a school cannot be located in either the Margarita Area or the Orcutt Area, under policies adopted by the independent Airport Land Use Commission. city of san Luis osispo 14 GEnemal plan annual Q6p01zt 2002 Waterways Management Plan The General Plan says waterways and floodplains should be managed to maintain and restore fish and wildlife habitat, prevent loss of life and minimize property damage from flooding, and provide compatible recreational opportunities. In 2002 the City continued work on a Waterways Management Plan to help achieve these goals. The City Council accepted the following as features to be evaluated by an environmental impact report, which was nearly completed in draft form by the end of the year: • Making better use of the culvert under Highway 101 near Cuesta Park to detain peak storm flows, reducing flooding downtown; • Encouraging taller, less bushy vegetation along the creek between Marsh Street and Madonna Road; • Creating by-pass channels parallel to the creek along some segments from Marsh Street to Prado Road; • Increasing the capacity of the Prefumo Creek culvert under Highway 101, and widening the floodable terrace where San Luis Obispo Creek is joined by Prefumo Creek. • Replacing Stenner Creek bridges at Foothill Boulevard (started in 2001), Murray Street, and Santa Rosa Street; • Allowing no net increase of fill for undeveloped floodplain areas. Separately from action on the proposed Waterways Management Plan, imposition of a property- based fee to pay for creek and flood protection was approved, and then later repealed due to a conflict with State law. Water and Wastewater Master Plans The City approved master plans for its water system and for its wastewater (sewer) system. These plans address system changes to serve new development areas, such as the Margarita Area, the Airport Area, and the Orcutt Area (pages 12 and 13), and to improve efficiency and reliability in already developed areas. Traffic and Circulation Much of San Luis Obispo's street system evolved before current traffic levels. Additional development is expected to bring more traffic, despite policies and programs intended to reduce trip generation from a given amount of development. Maintaining San Luis Obispo's livability involves fostering options to motor vehicle travel and avoiding excessive speed or congestion, considering all users and neighbors of roads. Following are the principal efforts undertaken or completed in 2002 to implement circulation goals. Walking and Cycling San Luis Obispo's climate, relatively compact form, and young population are conducive to walking and cycling. Safe, direct routes are key to encouraging further use of these modes. The Circulation Element calls for a network of bicycle and pedestrian paths. While the network will not be completed by the 2000 target date, substantial progress has been made since the 1994 Circulation Element update. Also, the City has not adopted the Pedestrian Transportation Plan that the Circulation Element calls for. However, in 2002 the City did the following to support walking and cycling for basic transportation and for recreation: city of San Luis OBISPO 15 cenenAL}nan annual RepoRt 2002 • Completed the Railroad Safety Trail from Bushnell Street to the Jennifer-Osos Street pedestrian bridge; • Completed an update of the Bicycle Transportation Plan, making the City eligible for additional grant funding, and initiated more comprehensive revisions to the plan's policies and standards; • Approved a preliminary alignment for a bike trail that would eventually connect the city with Avila Beach; • Finalized design of a "bicycle boulevard" on Morro Street between Santa Barbara Avenue and Marsh Street. A bicycle boulevard is a street that encourages through access by bicyclists and pedestrians while discouraging motor-vehicle through traffic. Transit Service &Public Transportation In 2002, the City did the following in support of maintaining and improving bus service and other public transportation: • Worked with developers to locate appropriate bus stops for projects on city bus routes; • Participated in the countywide "try transit" month; • Completed a makeover of the main bus transfer area next to City Hall; • Voiced support for Amtrak intercity passenger rail service; • Hired a consultant to prepare a new Short-Range Transportation Plan that will guide the operation of the City's bus system for the next five years; • Hired a consultant to prepare schematic plans for a consolidated transit center east of Santa Rosa Street near Monterey Street. Neighborhood Traffic Management As San Luis Obispo grows, objections to higher traffic levels or speeding traffic in some residential areas will likely increase. In 1998, San Luis Obispo established a program whereby neighborhood residents work with the City's transportation staff to develop solutions to these types of problems. In 2002, the City installed three "speed tables" (road humps that are flat on top) on Augusta Street to slow traffic. Access and Parking Management San Luis Obispo's downtown contains the highest concentration of commercial, office and government uses in the city. Traveling to and from this important area by various means and, for motorists, finding convenient parking is important to the downtown's economic health. In 2001, the City initiated the "Gold Pass" program that offers downtown employees free bus passes for the SLO Transit system. In 2002, the City: • Updated its Access and Parking Management Plan to include programs that reduce the demand for parking spaces and better manage existing spaces; • Expanded the Marsh Street parking garage to provide an additional 245 spaces; • Raised fees charged to new downtown development projects and increased the hourly rate for downtown parking to help pay for new parking and access projects. city of san Luis oBispo U 16 GeneuaL p n annual REpout 2002 Neighborhood Quality In addition to the items noted under Neighborhood Traffic Management, the City continued its code-enforcement and public education efforts. Also, the City Council adopted more explicit architectural review guidelines (relevant for infill projects), and revised Zoning Regulations' property maintenance standards. Parks & Recreation In 2002, the City took these major steps to implement its parks and recreation policies: • Entered into a joint-use agreement with the County, for softball fields at El Chorro Regional Park; • Let a construction contract for the Damon-Garcia Sports Fields. Sub-area Planning & Development The City is pursuing several activities that focus on particular sub-areas. In 2002, the Council: • Updated the Parking Management Plan, which is concerned mainly with downtown parking but also addresses limited-parking districts in residential neighborhoods; • Completed expansion of the Marsh Street parking structure; • Certified the environmental impact report for the proposed Copeland's downtown development; • Authorized two applications for grants to do focused planning of the Broad Street corridor in the vicinity of South Street to Orcutt Road. Land Use Element policy LU 3.5.7 has encouraged the relocation of automobile dealers to the area along Los Osos Valley Road and Calle Joaquin near Highway 101. In addition, program LU 3.7.8 stipulates that the City will provide incentives to encourage vehicle sales businesses to relocate to this area. Although the City is able to provide some incentives, the area is now essentially built out except for the McBride property whose owners have said they are not interested in this type of development. Part of their reluctance is the present City requirement for 50% open space as a condition to develop. The City prepared an Auto Dealership Location Study in 2000 that identified three other sites for vehicle dealership expansion areas. In order of preference they are the 16 acre Gap property just north of the BMW dealership, the 9.2 acre 40 Prado Road site, and the 5.7 acre Froom Ranch site across from the BMW dealership. Strategies that could be considered include reassessment of the open space requirement for the undeveloped properties in the existing Auto Park Way area, financial incentives to developers of the existing land owners that would make development more attractive, and providing a second location for vehicle sales from the identified alternatives. city of San Luis OBISpO v cencuaLUian annual,uepout 2002 Other Agencies' Activities The City's plans must take into account what other agencies' plans have allowed. The City often tries to influence other agencies' plans and programs, so they will help rather than hinder attainment of the City's goals. In 2002, there were significant activities involving a plan for compatible land uses near the Airport. The Airport Land Use Plan The Airport is a major influence on the community, particularly the southern part of the urban area where most future development has been planned to occur. Under State law, a countywide, independent Airport Land Use Commission (ALUC) adopts a plan identifying land uses that are compatible with present and future airport noise and safety conditions. The area subject to this Airport Land Use Plan (ALUP) extends beyond the City's designated airport specific plan area, and includes land under City jurisdiction and under County jurisdiction (map, page 18). Proposed specific plans and amendments to the General Plan and zoning must be referred to the ALUC for a determination of compatibility. The ALUC uses its plan as a basis for the determinations. For the City to override a finding of incompatibility, a four-fifths vote of the City Council and certain findings are required. The City's General Plan calls for consistency with the Airport Land Use Plan. In June 2002, the ALUC adopted major amendments to its 1970's-vintage plan. Following that action, the City began steps toward reflecting the amended ALUP in its specific plans for the Airport, Margarita, and Orcutt areas, and in its Zoning Regulations (as part of the proposed commercial zoning update). According to State law, the City must also make its General Plan conform to the amended ALUP, or make a special override. That task is expected to extend through 2003. The major issues are expected to involve infill housing, uses that concentrate young or elderly occupants (such schools and residential care facilities), and provision of level, open areas that can serve as emergency landing places. Program Status The General Plan contains an ambitious array of programs covering many types of City activities. The Housing Element, in particular, includes many programs with specific time frames. This report touches only on the major programs that saw activity in 2002. A status list of all General Plan programs follows. Staff will continue to update and correct this list throughout the City's goal-setting and evaluation activities. The City Council formally reconsiders program priorities and support levels every two years, as part of the budget cycle, while General Plan elements are usually revised only every five years or more. The two-year priority determinations made by the City Council supersede the target program-completion dates in the General Plan. Also, some programs depend on other agencies.As a result, the actual program work often varies from the originally targeted completion dates. �^a Q «r��V •t�17::� • 11Y:������ `jam ♦ 11. ♦i 1.0 4 1111 ......._.i y��,� _MEMO..,. �► Aw os b Xi , • • 4 ... ----------- z city of san Luis oBispo 19 Geneuat—v(an annual uepout 2002 For More Information ' Community Development Department offices are in the lower level of City Hall, which is downtown at the comer of Palm and Osos streets. Office hours are 8:00 am to 5:00 pm, Monday through Friday, excluding holidays. The location and mailing 990 Palm Street San Luis Obispo, California 93401-3249 U.S.A. A few short-term parking spaces are available at the curb in front of the building and behind the building. Additional parking is available in a structure one block west on Palm The department's main entry is wheelchair accessible, and there is a curbside, disabled parking space in front of the building. There are also wheelchair-accessible entries to City Hall's upper level and a disabled parking space behind the building, with access from Osos Street,but there is no elevator or indoor ramp between the levels of City Hall. Osos Street at Palm Street is a meeting point for local and county bus routes. Maps and publications may be viewed or purchased at the Community Development Department. Paper document purchase prices reflect only the cost of printing. Large documents are usually made available as "pdf' files at no cost through the City's Web site, or at nominal cost on CD's. Most items are also available for reference at the City- County Library across the street from City Hall, and at the Documents and Maps Section of the Cal Poly Library. The libraries generally have evening and Saturday hours. The department phone number is 805 781-7172; the fax number is 805 781-7173. TDD The City's Telecommunications Device for the Deaf number is 805 781-7410. ® _ Through the City's web site you can read or download the Digest General Plan and City regulations, learn more about City services, and check on some meeting agendas and meeting updates. The Web site is http://www.slocity.org. Se puede hater preparativos para traducir en espaftol. 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Boswell, Vice-Chair Orval Osborne, and Chairwoman Alice Loh Commissioner Boswell was absent. ACCEPTANCE OF AGENDA: Commissioners.or staff may modify the order of items. The agenda was accepted as written. PUBLIC COMMENT: Mary Beth Schroeder spoke in support of American liberty and our troops overseas. PUBLIC HEARINGS: 1. Watershed-Greenbelt Area. GPA 10-03; Study Session: Natural Resources and Land Conservancy of San Luis Obispo County presentation on the City's Greenbelt, to adjust the boundary to the natural watershed boundary, City of San Luis Obispo, applicant. (Neil Havlik and Mike Draze) (To be continued to April; 9, 2003) This study session was continued without discussion to the April 9th meeting, due to a scheduling conflict with the presenters. 2. Citywide. TA, GP/R and ER 32-02; Review of the Commercial Zoning Update including a possible expansion of the downtown commercial core; City of San Luis Obispo, applicant. (Michael Codron) The Planning Commission voted unanimously to forward a recommendation to the City Council to approve the proposed Commercial Zoning Revisions. This was the third opportunity for the Commission to review the project. One of the most significant changes proposed is to allow or conditionally allow mixed-use development in all of the City's commercial zones. This would remove the obstacle of rezoning property for developers that want to include a residential component in their commercial project. The Planning Commission is recommending that the City use the Mixed Use (MU) zoning designation proactively to rezone areas where mixed-use development would be required, although no specific properties are identified for the MU designation as part of this project. The Commission also recommended removing the Downtown Zone expansion from the project description because of potentially significant environmental impacts related to traffic and parking. The Commission did not want to see the issue r�3g Planning Commission Agenda Page 2 put on the "back burner"and suggested that further study of potential parking solutions should occur in the short-run. 3. 682 Palm Street. FH 6-03; Appeal of the Director's approval of a fence height exception to allow an 8-foot high wrought iron fence where a 3-foot high fence is allowed; R-3-H zone; Mission College Preparatory, applicant. (fyler Corey) The Planning Commission denied the appeal and modified the conditions of approval that were attached to the approval. The Commission allowed for low-level landscaping in front of the fence so that views to the field from the sidewalk and street could be maintained. This was desirable by the appellant and Commission for security reasons and to allow passers-by to enjoy the field activities, such as baseball and football. BUSINESS ITEM 4. Citywide. General Plan Annual Report: Discussion of the report on the status of the General Plan and its implementation. (Continued from March 12, 2003) (Michael Draze) The Planning Commission discussed the General Plan Annual Report and voted unanimously to forward the report to the City Council with two comments: 1) The City should address the financial benefits of General Plan changes encouraging expansion of sites for auto dealers as well as the location of large retail outlets. 2) The City should accelerate the review of changes needed in the General Plan to allow larger medical offices in areas where they are not now allowed, and the possibility of allowing other low-impact office uses in the Services & Manufacturing categories. COMMENT AND DISCUSSION: 5. Staff A. Agenda Forecast Staff provided the Commission with a forecast of upcoming meeting agendas. 6. Commission The meeting ADJOURNED at 9:45 p.m. to the regular meeting of the Planning Commission scheduled for Wednesday April 9, 2003, at 7:00 p.m. in the Council Chamber of City Hall, 990 Palm Street. ATTACHMENT 3 _u mEmo��nc�um _ .city of san lues oBispo, a0mmistixation be atztme% 1 DATE: May 12, 2003 TO: Ken Hampian, City Manager FROM: Shelly Stanwyck, Economic Development Manager SUBJECT`. Economic Development Analysis of Medical Office Space Defining the Issue For several years now, physicians, physician group managers and commercial real estate brokers have repeatedly contacted the Economic Development Program seeking medical office space. They have raised several concerns about the availability of space for physicians in the City of San Luis Obispo. Many have been frustrated by our current zoning regulations, which they feel have limited their opportunities for office locations. Concerns Raised There is a perceived shortage of medical office space by both the medical and real estate communities; although we do not have statistical data to support this because a formal study has not been undertaken. There are developed and undeveloped properties appropriately zoned for this use, adjacent to hospitals or in Downtown. However, not all of the property is available to physicians in private practice. In some instances, association with a specific corporation or entity is required to lease the office space and many physicians prefer to operate their own businesses, not work for someone else. Also, some of the last remaining properties are neither developed nor in the process of being developed, and if developed, would not necessarily be available to private practices. Finally, like many small business owners, most physicians lack the time and expertise to be in the development business. The business structure that physicians used when the City's zoning regulations governing them were put in place has changed in recent years. Private practices run the; range from sole practitioners to large practice groups. The trend, due in large part to economies of scale, appears to be the co-location of physicians together to save on overhead costs. Many large practice groups, and several small partnerships, have identified parking requirements as the biggest hurdle they must overcome and would like more flexibility in parking standards. In some cases, such as an anesthesia practice group, minimal office space is required because the majority of their work is completed on-site at a surgery center or hospital and they therefore have minimal parking needs. In other specialties with support staff and attendant uses, large amounts of office space is required, but is not used at its capacity throughout the day as one patient visits several aspects of the practice group. Office space in San Luis Obispo, as compared to other cities in the County, is more expensive.. Templeton in particular has attracted many physicians to its*professional office space because it is readily available and more economical. Our limited product, with higher costs, has made Medica!ice Memo C\ maintaining an active private medical practice in San Luis Obispo more challenging than it once was and less lucrative than other areas in the County. Lastly, economic forces far beyond the control of local government and the local business community have created new and unforeseen obstacles for being in the business of providing medical services in our community. Our City has gone from having the most physicians per capita (late `70's early 80's) than any other City in the nation and doctors clamoring to relocate here, to having difficulty filling vacancies and attracting new practice groups. Solution: Increased Flexibility in Location of Medical Offices Although some of the issues presented by this situation require much larger social changes, there may be some things the City could do to help resolve this dilemma. First, whenever possible, staff should continue to encourage medical uses in appropriately zoned areas. Second, we could consider an immediate and shorter-term solution of allowing medical uses in areas that allow professional or office type-uses and that are located near public transportation or are located near large residential areas. For instance, near the comer of Tank Farm Road and Broad Street, there is existing public transportation, existing commercial development, existing residential development and future residential development nearby. Some of the available space in that area could be utilized by physicians and solve some of this serious problem. There are other areas, that are similar to this example, that the planning staff could be directed to analyze for this type of use. 1-4( e �►►Illlllllllll6'Il'�Il�i',j ' ��j'i�llili�liii'lll,� ,� Cl of it san tins OBISPO community Oevetopment bepantment i f; Y t 2002 annual jzepoizt januaRy L 2002 - 66CCMB6R 3l, 2002 4-03 . community development oep tstment 2002 annual 2eporzt city of san Luis oBispo community 6evelopment 6epaiztment The San Luis Obispo Community Development Department is responsible for administering the City's planning and construction regulation programs. The Community Development public counter is located on the lower level of City Hall, 990 Palm Street, across from the City/County Library. Business hours are from 8:00 to 5:00 daily. For more information contact the department at (805) 781-7172. You may also visit our information pages on the worldwide web at www.slocity.org. People think that city planning and construction regulation have something to do with zoning, building permits, housing subdivisions, or maybe the General Plan. Actually, city planning includes all of these activities and much more. Planning involves the complex interaction of individuals, neighborhood groups, business organizations, environmental groups, other advocacy groups, land developers, and contractors with appointed and elected City officials and the staff. The five City Council members are elected officials. The City Council appoints people to serve on advisory bodies such as the Planning Commission, Architectural Review Commission (ARC), Cultural Heritage Committee (CHC), the Board of Appeals, and the Appeals Board for Disabled Access (which consists of the Board of Appeals plus two disabled citizens). These advisory bodies help oversee various parts of the planning and construction regulation program and provide an important means for citizen participation in city government. The Community Development Department staff are employees who work with the City Council and appointed citizen groups to administer the planning and building programs. 1 community development 6cpaktment 2002 .Nnnu.\I.kepoat community aevetopment bepautment OUR MISSION STATEMENT Our mission is to serve all people in a positive and courteous manner and help ensure that San Luis Obispo continues to be a healthy, safe, attractive, and enjoyable place to live, work, or visit. We help plan the City s form and character, support community values, preserve the environment, promote the wise use of resources, and protect public health and safety. OUR SERVICE PHILOSOPHY The City of San Luis Obispo Community Development Department staff provides high quality service when you need it. We will: Listen to you, so we can understand your needs; Give clear, accurate and prompt answers to your questions; Explain how you can achieve your goals under the City's rules; Help resolve problems in an open, objective manner; Maintain high ethical standards; and Work to improve our service. 2 community' oCVE1.0p1T1tnC 0CPA UTI nt 2002 annual.REPORt INTRODUCTION The Community Development Department has several divisions under the direction of the Community Development Director, who is appointed by and is responsible to the City Administrative Officer. The divisions within the department include Development Review, Long-Range Planning, and Building and Safety. The Development Review and Long-Range Planning Divisions carry out the planning activities within the department. These two divisions are responsible for preparing plans, such as the Cit/s General Plan, developing programs and ordinances (such as zoning regulations) which implement general plan policies, and reviewing development projects. The Building and Safety Division administers State and local building codes and is responsible for ensuring safe and sound public and private construction. Its staff issues building permits, checks building plans, and inspects code-regulated work at construction sites. The following more clearly defines the responsibility of the Long-Range Planning, Development Review, and Building and Safety divisions. 3 community oryeLopmtnt Of,paPWIent 2002 annual. uepont LONG-RANGE PLANNING' The City prepares and maintains long-range plans. These plans forecast future conditions and needs, identify community concerns, and provide strategies to meet adopted goals. They also establish policies and standards for day-today decision-making. These plans guide the City's physical development and how the City plays its roles within the region, state, and nation. The Long-Range Planning Division helps prepare, maintain, and implement long-range plans. It also oversees the City's Community Development Block Grant Program (CDBG) and staffs the City's Cultural Heritage Committee.. The General Plan, because of its comprehensive scope and status under State law, is the City's primary long-range plan. The General Plan is discussed in more detail below. The City also adopts and maintains other long-range plans for particular land areas or topics, such as specific plans and physical design plans. These plans, like the General Plan, guide decision-making. The City's long-range plans influence the City's role in the region. Following the policies in these plans, staff and elected officials represent the City's needs and desires in a variety of contexts. Regional planning forums also identify issues and suggestions for how to incorporate regional goals into the City's plans and decision-making process. Planning staff works with the staff and officials of other agencies to ensure that City policies are considered as these other agencies take actions that can affect the City. The most frequent regional coordination occurs with the County, San Luis Coastal School District, the Airport Land Use Commission, the San Luis Obispo Council of Governments, the Air Pollution Control District, and the State of California. The General Plan The General Plan is a blueprint for the physical development of our community. California law requires that each City and County adopt and maintain a General Plan. The plan must address land use, transportation, housing, open space preservation, and the conservation of resources, public safety, and community noise levels. In addition to these mandated topics called "elements," San Luis Obispo's General Plan addresses energy conservation, parks and recreation, and water and wastewater management. Ideas about a community's future change as new concepts are developed, new problems are identified, old solutions are reconsidered, and as the population changes. Consequently, the General Plan is constantly being studied and revised. Guidelines published by the California Office of Planning and Research recommend that General Plans be reviewed every five years and updated every 10 years. The Conservation Element, Energy Conservation Element, and Open Space Element are being updated and combined into a single element, along with conservation-related 4 community oevel.opment ( epati;tment 2002 anrnial.ueponL policies from other elements. The draft update, titled the Conservation and Open Space Element, has been completed and began hearings in the fall of 2002 and will continue in 2003. Work on updating the Housing Element has begun and will continue through calendar year 2003 with.anticipated adoption in December 2003. The update of the Land Use Element is next, and Circulation Elements will follow in the next few years. Maintaining a general plan that is responsive to community values means that the plan must be amended from time to time. In 2001, five amendments were made to the City's General Plan. (The Community Development Department also prepares a separate Annual Report on the General Plan, which provides more detail on General Plan amendments and implementation programs.) If a pattern to individual amendments arises, staff will recommend that the common issue be investigated and, if necessary, recommend that the City initiate a more comprehensive amendment to keep the General Plan responsive to the needs of the community. Status of General Plan Elements The following table summarizes the status of General Plan elements.. Table 1 GENERAL PLAN ELEMENTS REQUIRED OR DATE OF ADOPTION ELEMENT OPTIONAL OR MAJOR REVISION COMMENT Land Use Required 1994 Housing Required 1994 Update to be considered in 2003 Circulation Required 1994 Open Space Required 1994 Update combining these topics Conservation _ Required 1973 began hearings in the fall of Energy Optional 1981 2002 and will continue in 2003 Conservation Noise Required 1996 Safety I Required 2000 Parks& Optional 2001 Recreation Water& Optional 1996 This element is part of the Wastewater City's Water Management Plan Management which addresses the State law requiring an "Urban Water Management Plan" that need not be part of the general plan 5 community c)evdopmtnt depaQ*Cment 2002 AnnuaL Repottt The Community Development Department maintains a digest version of the General Plan, which makes available in one volume the policies and programs of all the elements, in a standardized format with cross references. The digest works as a handy reference for staff, decision makers and the public. General Plan Implementation Activities The General Plan is implemented .through the City's day-to-day approval of development projects, because these approvals are required to be consistent with the General Plan. In addition to these incremental implementation actions, the Community Development Department played a lead or major role in the following high-profile General Plan activities in 2002: • Implementing the Inclusionary Housing Requirement, through which most development projects include, or make a contribution toward, affordable housing; • Completing annexation of two commercial sites in the Airport Area; • Completing annexation of the Irish Hills reserve, for open-space protection; • Completing revised drafts of the Airport. Area Specific Plan and Margarita Area Specific Plan and a public review draft environmental impact report for the plans; • Working with property owners in the Orcutt Area to complete a project definition for a specific plan; • Participating in the independent Airport Land Use Commission's effort to update the State-mandated Airport Land Use Plan; • Working with the Airport Land Use Commission in an effort to assure that the Airport Land Use Plan and the City General Plan are consistent. General Plan Amendments During 2002, the City approved the amendments listed in Table 2. Since the 1994 updates, there has been no major citywide change nor overall pattern among the individual changes that suggests a comprehensive re-evaluation of goals or policies is necessary at this time. 6 commumt) development dep.kntment 2002 Annual veporzt Table 2 General Plan Amendments in 2002 Type Location or Change Area Initiated by; comment Subject acnes Land Use Timing of park Allow park and sports fields not City; to allow the Damon- Element development in the development before the applicable Garcia Sports Fields to text Margarita Specific specific plan is adopted proceed if the specific Plan Area plan is further delayed. Water & Accounting for Eliminate requirement for not City; to economize on Wastewater water use and reliability reserve, and revise applicable supplemental water Manageme supplies policies concerning requirements, and to nt Element retrofitting, reclaimed water, clarify intent. text and siltation. Development Rates Taken as a whole, the General Plan says housing construction should occur not much faster or slower than one percent per year on average (measured one per 36-month period), that it should include a variety of housing types, and that it should include dwellings affordable to low- and moderate-income residents. Table 3 summarizes residential construction since 1995. "Market Rate" refers to dwellings with no price limits or direct subsidies, while "Below Market" refers to dwellings that do have a price limit or subsidy intended to make them more affordable to low-income or moderate- income residents. The table reflects only construction within the city limits. Annual increases in the number of dwellings have remained below one percent. A significant new residential neighborhood, the De Tolosa Ranch, began construction of 267 homes in 2002. The adjacent Rancho Obispo development with 145 dwellings also began construction in 2002. As of December 31, 2002, the 36-month annual growth rate was .52%. The growth rate for the year 2002 was .48%. The General Plan Annual Report provides more detail. 7 community development oepartlnfnt 2002 annual Pepoat Table 3 1995 - 2002 RESIDENTIAL DEVELOPMENT Net Change Due to Completed Construction number of dwellings) Single Family Multifamily Total Annual Growth Rate Year Market Below Market Rate Below forthe fora Rate Market Market year years 1995 50 0 -4 20 66 0.36% 1996 83 0 10 0 93 0.49% 1997 138 0 13 0 151 0.79% 0.54% 1998 132 0 10 0 142 0.74% 0.67% 1999 64 4 -9 0 59 0.31% 0.61% 2000 73 4 -14 41 104 0.54% 0.53% 2001 82 0 22 3 107 0.55% 0.46% 2002 69 0 2.5 0 94 0.48% 0.52% Notes: Classification as to single-family or multi-family differs from.previous reports, to conform to State and Federal housing-type definitions. Not reflected in these numbers, in 1999 about 24 existing dwellings, mostly single-family, were annexed as part of the Fuller Road Area. The General Plan also says that the gap between housing demand (due to more jobs and college enrollment) and supply should not increase. There is no specified time period, other than the build-out of the General Plan, for measuring this relationship. This overall direction is supplemented by a policy that the City will consider setting non- residential construction limits if the amount of non-residential floor area increases faster than one percent yearly, averaged over a five-year period, and excluding the first 300,000 square-feet built after 1995. (The 300,000-square-foot threshold was reached in 1997.) Table 4 summarizes non-residential construction since 1995. The amount of non-residential construction varies widely by type and year, although the average annual growth is over 1.5%. What appears to be a two-year cycle for total non- residential construction is believe_ d to be a coincidence and should not be assumed to continue into the future. "Institutional" includes schools, churches, and government buildings. The table reflects only construction within the city limits. Projects in the unincorporated Airport Area or Cal Poly, for example, are not included. The General Plan Annual Report provides more detail. 8 community ocvel.opment Oep.ustment 2002 AnnuaL izeporzt Table 4 1995 - 2002 NONRESIDENTIAL DEVELOPMENT Net Change Due to Completed Construction (gross floor area in square-feet Annual Growth Rate Service & Excluding first Year Institutional Office Retail Manufacturing Total Actual 300,000 sq.ft. 1995 -3,123 38,700 46,712 101,487 181,676 2.08% 0% 19961 32,440 10,5891 0 11,691 54,720 0.61%1 - 0% 1997 0 17,500 148,813 17,973 184,286 2.05% 1.3876 1998 0 2,600 84,712 -5,569 81,743 0.89% 0.92% 1999 4,840 75,923 41,152 143,852 265,767 2.87% 2.97% 2000 26,348 9,738 122,756 84,469 47,851 0.50% 0.52% 2001 1 18,7251 79,988 98,720 57,6271 255,060 2.67% 2.75% 2002 -19,7651 38,203 16,759 57,8581 59,537 0.61% 0.63% Annual average 1998 - 2002: 1.54% 1.60% Data are corrected from previous reports, based on an audit of the database. These numbers do not reflect annexed buildings or changes between use categories in existing buildings. Non-residential building area has increased two to three times faster than the number of dwellings in several of the last six years. The amount of non-residential construction in the City has exceeded the 5-year rate that triggers review of the growth management policy. The Council reviewed the non-residential growth management during the annual review of the General Plan in 2002. At that time, the Council acknowledged that non-residential growth was more cyclical and less consistent that housing demand. The Council determined that the non-residential growth rate should continue to be monitored. As expected, non-residential development slowed substantially, growing by 0.61% in 2002. The greatest capacity for non-residential growth exists in the Airport, Irish Hills, and Dalidio areas. The issue may come down to how fast the community wants to accommodate office and retail uses in undeveloped areas designated for those uses. A key question will be how to account for commercial and industrial development built under County jurisdiction and then annexed by the City. 9 community oeveLopment oepaz;tmen;t 2002 annual uepom Historical Preservation During 2002, the Cultural Heritage Committee nominated one property to the Master List of Historic Resources, reviewed 30 current planning items concerning historic properties or projects within historic districts, and reviewed or participated in ten city- sponsored projects, including the Morro Street Bike Boulevard/Railroad Historic District Improvements, City Hall Anniversary celebration and time capsule, the John C. Fremont reinstallation, the Copeland's Center archaeological workscope, the City Hall Transit Center, rehabilitation of the historic SP freight warehouse, and Pedestrian Streetlamps for the Downtown Historic District. Committee members also provided preservation counseling/outreach services for three private development projects, and participated in three public education programs. Community Development Block Grant The Community Development Department coordinates the preparation and administration of the Community Development Block Grant (CDBG) Program as part of the San Luis Obispo Urban County. The City has received almost a million dollars of federal funding annually since joining the Urban County partnership in 1993. In 2002, the City received a formula grant allocation of about $931,336. Activities funded included property acquisition for a 22-unit low income family apartment project, acquisition of a Food Bank warehouse, Huasna/Oceanaire Neighborhood improvements, handicapped improvements for a new, very low income elderly housing project, energy conservation upgrades for a 9-unit low income apartment development for persons with HIV/AIDS, repayment of the City's Section 108 federal guaranteed loan (for affordable housing and historic museum rehabilitation), shelter and services for homeless persons, handicapped ramp installation in city streets, and program administration. A complete listing of CDBG projects is available at the Department. 10 community oevslopmrnt oepmstment 2002 AMLIAL PEpOM DEVELOPMENT REVIEW The City has adopted laws that regulate the use of land and the design of most commercial and housing projects. The purpose of these laws is to protect the health, safety and welfare of community residents and visitors. Laws, such as the Zoning Regulations, architectural review requirements, and Subdivision Regulations, require that people submit applications for project approval to the Community Development Department. The review evaluates the proposals for consistency with the City's General Plan and all other applicable plans and regulations. These applications are acted on by the Administrative Hearing Officer or citizen commissions appointed by the City Council, such as the Planning Commission and the Architectural Review Commission. Some of the more complex development projects are acted on by the City Council. The planning staff also prepares and oversees reports that study the environmental effects of development projects and identify ways of avoiding environmental damage. This work is required by the California Environmental Quality Act (CEQA). An Overview of Planning Actions Planning actions are those taken by the City Council, Planning Commission, Architectural Review Commission (ARC), or the Administrative Hearing Officer. They cover a wide range of activities from the City Council's approval of a housing subdivision to the Hearing Officer's approval of a permit for a six-foot fence in the front yard of a house. Before building permits can be issued, most development projects must be approved by the Administrative Hearing Officer, ARC, Planning Commission, and sometimes the City Council. There is often a year or two between the time a project is approved and the time construction actually begins. Therefore, actions of these hearing bodies tell us what will be happening one or two years from now while building permit trends tells us what actually is being constructed during a given year. Land Divisions Before new buildings are constructed, land is usually subdivided into individual lots or condominium units. Once subdivided, each lot can be developed. The City approves most subdivisions in two steps. First, a tentative map is approved which shows the design of lots, streets, and open areas. Second, after detailed improvement plans have been prepared, the City approves a final map. In most cases, one or two years elapse between the approval of a tentative map and approval of the final map. Therefore, the approval of final maps is the better indicator of the number of lots actually created. 11 community 0eveLopment 0cpautment 2002 annual.z:epont Administrative Items The Administrative Hearing Officer is a management-level planner working in the Community Development Department. On the first and third Friday of each month, the Hearing Officer holds a public meeting to consider a variety of permit applications. The applications are for variances and exceptions from zoning standards and for uses which need to be reviewed before they can be established. Home occupation permits account for the greatest number of over-the-counter permits. A home occupation permit is required for anyone who wants to operate a business in a residence. Applications for these permits are reviewed to ensure that home businesses do not disrupt residential neighborhoods. Other over-the-counter permits include sidewalk safes, temporary Christmas tree/pumpkin sales lots, fence height exceptions and downtown housing. Environmental Determinations The Community Development Director reviews most projects to determine their effect on environmental resources. If the Director determines that a project will not damage the environment, a negative declaration is granted. Sometimes the .negative declaration includes mitigation measures that specify how the project has been changed to avoid environmental problems. If a project may cause significant environ- mental problems, the Director requires the preparation of an Environmental Impact Re- port (EIR). The EIR further documents the extent of potential problems and suggests ways of avoiding or mitigating them. County Referrals County government has jurisdiction over planning decisions affecting territory beyond San Luis Obispo's city limits. The types of decisions made by the County are similar to those made by City officials - subdivisions, development projects, and changes to the County General Plan are examples. Since decisions made by the County can affect people and property inside the city, the County Planning Department refers development applications to the City staff for review and comment. All proposals that are within the. City's planning area (the northern part of San Luis Obispo's watershed) are sent to the Community Development Department as a referral. The City staff reviews these proposals and sends comments and recommendations back to the County planners. The number of county referrals shows us how much development is occurring in areas surrounding the city. 12 community oevel.opmtnt oepantment 2002 annual nepont Zoning Regulations Zoning is basically the division of a city into districts and the application of different regulations in each district. The specific purpose of the City's Zoning Regulations is "to guide the development of the city in an orderly manner based on the adopted General Plan, to protect and enhance the quality of the natural and built environment, and to promote the public health, safety, and general welfare by regulating the use of land and buildings and the location and basic form of structures." The City's Zoning Regulations are generally divided into two classes: 1) those that regulate the height or bulk of buildings within certain designated districts as well as the development standards (i.e. parking, setbacks, etc.) applicable to those buildings - in other words, those regulations that have to do with design of the buildings and the site; and 2) those that prescribe the use to which buildings within certain designated districts may be put. The City's Zoning Regulations, which are contained in Title 17 of the Municipal Code of San Luis Obispo, implement the goals and desires of the City's General Plan. The regulations determine how property is to be developed in the city and establish the permit process necessary for the orderly development and implementation of the City's General Plan. Special Projects City Administration, the City Council or the advisory commissions and committees that the department supports often request that the planners work on specific projects. These projects typically deal with programs that the City itself wants to sponsor, in con- trast to responding to proposals made by private parties or programs required by law. Many of these special projects are described in the City's Financial Plan (its two-year budget) and are assigned to the Community Development Department for implementa- tion. Because they may involve the expenditure of public funds or the creation of new public policy, special projects can require significant staff time and energy. 13 i community 6evelopmtnt oep.wtincnt 2002 NnnuaL i;epont 2002 Planning Activity Summary PLANNING COMMISSION Approved Denied Referred Continued Total Use Permits/Variances 10 1 4 15 Appeals 1 4 5 Rezonings 5 5 General Plan Amendments 0 General Pian Amendment/Rezoning 9 3 12 General Plan Implementation/rext Amendments 3 1 3 7 Standard Subdivision(Tract Map) 3 1 4 Minor Subdivision(Parcel Map)/LLA 1 1 3 Annexation 2 2 Environmental Review 26 6 32 Other* (GPC/SP) 6 6 Planned Development/PD Amendment 1 1 Abandonment 2 2 Study Sessions 13 13 Misc.Discussion Items 33 33 Planning Commission Total 115 6 0 19 140 ARCHITECTURAL REVIEW COMMISSION Approved Denied Referred Continued Total Final Approval 40 8 48 Signs 7 11 18 Minor or Incidental(Appeals/Referrals) 2 2 Environmental Review 2 2 Recommendation to City CounciVStudy Sessions 15 15 Modification/Plan Revisions 9 2 2 13 Schematic/Conceptual Review 15 15 Public Art 5 2 7 Misc.Discussion Items 49 49 Architectural Review Commission Total 93 2 0 25 120 14 community 0eve10p1nt.11t 0CPARt111ent 2002 annual. ueporzt . 2002 Planning Activity Summary (pg. 2) ADMINISTRATIVE HEARING OFFICER Approved Denied Referred Continued Total Use Permits 48 2 1 16 67 Variances 3 1 4 Minor Subdivisions 2 2 Review Hearings 1 1 2 Home Occupation/Fence Height Appeals 1 1 Environmental Review 1 1 Administrative Hearing Officer Total 56 2 1 16 77 ADMINISTRATIVE ACTIONS(NO HEARING) Approved Denied Referred Continued Total ARC Minor and Incidental 59 59 Lot Line Adjustments 5 5 Home Occupation Permits 156 156 Outdoor Sales(Christmas Tree,etc.) 5 5 Fence Height Exceptions Downtown Housing Permits Sidewalk Sales County Referrals 32 32 Lot Mergers 8 8 Certificates of Compliance Environmental Review 2 2 Administrative Actions Non-Hearing Total 267 0 0 0 267 TOTAL APPLICATIONS S31 10 1 62 s04 *Affordable Housing Incentives; Street Name Change; General Plan Element Reviews; Various Text Amendments; Street Abandonments; Capital Improvement Program Review; Mico. Guidelines and Ordinances; General Plan Conformity Reports; Annual Reports;Specific Pian Amendments 15 community oeveLopment oep.Wtment 2002 Nnnual. Qepoat 2002 Planning Activity Summary (pg. 3) Cultural Heritage Committee Projects Discussion Recommendations Items Total Reviewed Items Made Continued Items 40 27 35 5 107 City Council # Projects Consent Items Long Range Development Total on Agendas On Age Planning Review Items 59 22 28 53 81 Annual Planning Application Totals 330 310 290 270 Total 250 Projects 230 210 190 It 170 _ 150 c7 v Ln c0 r� CD O O N O O O) Q) O O O O O O O T W O m O) O) O O O N N N 16 Community OeyeLopinent CSEpantmen-C 2002 AI)nU,11,PEPOQU ' Trends in Complex* Planning Applications 35-,- 30-/ 25 Total 20 Projects 15 10 5 0 f7 tt � CD r• O O O � N W W 0 M Cn in 0 O O O r 1 r r r 1 1 N N N Includes Annexations, General Plan Amendments/Rezonings, Major Subdivlslons, and Planned Developments 17 `-// community ncvelopment Oepautmcnt 2002 annual kcpont BUILDING AND SAFETY Regulating the construction of buildings is a basic form of public safety that benefits city residents and visitors. Before a building is constructed, the property owner must get a building permit. Before permits are issued, the construction plans are reviewed to ensure that the design meets all City and State standards. Once the plans have been checked and permits issued, construction can begin. Staff inspects the project while it's being built to make sure that appropriate Building Code requirements are being followed, and that the building is consistent with the plans ap- proved by the City. Construction Trends Table 1 compares current construction in San Luis Obispo with previous years, based on the number of building permits issued by the Building Division throughout the year and on the estimated construction value of each project. Code Compliance In addition to insuring that new development is designed and constructed in conformance with City standards for quality and safety, the Community Development Department also insures that property and land uses stay in conformance with those standards over time. The Department enforces the City's land use, development, building and sign regulations through its Code Enforcement Program. The Code Enforcement Coordinator is responsible for resolution of violations, which may include a prosecution component, as outlined in Table 2. The program is complaint-driven and handles approximately 400 cases per year. Upon receipt of a complaint, a building inspector makes a preliminary site visit to verify the existence of a violation, and informs the Code Enforcement Coordinator about conditions on the site. If a violation exists, a "Notice of Violation" is issued and the necessary steps are taken to resolve the problem. More complicated cases are set for abatement proceedings or in some cases, criminal prosecution. 18 community oevelopment oepuninent 2002 annual tzepoRt Building and Safety Yearly Report Table 1 BUILDING PERMITS ISSUED 2002 2001 2000 7F777 Single Family(Units) 180( 180) 109( 109) 49( 49) 100( 101) Mufti Family(Units) 14( 169) 7( 23) 8( 33) 4( 34) Commercial(Units) 25( 2) 19( 1) 28( 1) 19 Public-New Buildings&Alterations 7 7 10 5 Residential Additions/Alterations(Units) 338( 1) 341( 1) 318 348( 1) Commercial Additions/Alterations(Units) 222( 1) 162 147 169 Motel Rooms ( 13) ( 27) ( 36) ( 0) TBaftsngPerxilits.t OTHER PERMITS ISSUED 2002 2901 2000 1999 Grading 6 13 22 12 Demolition(Units) 22( -10) 22( -13) 18( -17) 16( -16) Plumbing,Mechanical&Electrical 2,133 1,519 1,261 1,476 Sign 66 59 68 74 Renewals 0 0 1 0 VALUATION OF CONSTRUCTION 2002 2001 2000 1999 Single-Famity 28,820,839 21,220,790 7,593,756 18,273,459 Multi-Family 10,455,591 1,207,719 2,322,852 1,656,603 Commercial 16,565,363 9,259,219 20,885,889 8,209,215 Public-New Buildings&Alterations 843,000 7,107,000 1,577,179 878,494 Residential Addltions/ARerations 5,160,336 5,244,032 3,370,622 5,651,880 Commercial Additions/Atterations 17,303,662 8,426,230 9,811,753 13,728,616 To>K1Citah�aHpq ?8Fyd8?9] 52:1' rz �U d5 ,tf5� ,388, 6T PROJECT STATISTICS 2002 2001 2000 1999 Plan Check Applications Submitted 653 713 577 601 Inspections Conducted 9,965 8,230 10,692 10,609 CODE ENFORCEMENT ACTIVITY 2002 2001 2000 1999 Violation Complaints Received 425 383 302 369 Cases Resolved&Closed 440 375 324 398 Avg Days to Resolve Cases 97 109 19 . community Development oepmitment 2002 annual. z;epont Table 2 CODE COMPLIANCE TYPES OF COMPLAINTS 2002 Garage Conversion 31 Substandard Housing 43 High Occupancy Residential Use 9 Other 66 Signs 46 Converted Living Space 26 Home Occupations 15 Fence Height 18 Animals 6 Trailers 3 Noise 7 Fraternities/Sororities 2 Use In Wrong Zone 8 Building Code Violations 55 No Building Permit 92 Neighborhood Preservation (Effective 5/16/02) 99 TOTAL COMPLAINTS RECEIVED 526 Established cases may have multiple complaints. ENFORCEMENT PROGRAM EFFECTIVENESS"* FY 2002 Total Cases Established 428 Total Cases Resolved 363** Cases Remedied by Referral to City Attorney 1 Cases Remedied by Prosecution 0 **In any given year, staff may be closing cases from the previous year. 20 community oevel.opment bep.wtlnent 2002 AIIT)wd vepon't CITY COUNCIL ADVISORY BODIES The Community Development Department staffs the following City Council advisory bodies: Planning Commission The Planning Commission reviews and recommends to the City Council changes to the General Plan and Zoning Regulations, hears appeals of Zoning Hearing Officer decisions, and reviews certain development and land use permit applications. In weighing decisions on the development of San Luis Obispo, the Commission provides a sounding board for public opinion. Although commissioners do consider the rights and desires of property owners, developers, and the general public, they must make their decisions pursuant to the General Plan, ordinances, and other standards and procedures set forth in State and City law. The Commission's goal is a well-planned community with compatible land uses. The Planning Commission has seven members appointed by the City Council. Architectural Review Commission The Architectural Review Commission (ARC) evaluates the architectural merit of most commercial, residential, and public building projects, including exterior remodeling. ARC approval is required before building permits are issued. The Commission also advises the City Council on design standards, architectural design, and site planning. Commission goals are harmonious, aesthetic. development within the City and preservation of the City's natural beauty and visual resources. The ARC has seven members appointed by the City Council. Cultural Heritage Committee The Cultural Heritage Committee (CHC) oversees a broad range of educational and technical assistance programs aimed at preserving historical and cultural resources. The committee maintains the master list of historic buildings, advises people interested in restoring historic structures, reviews planned demolition of historical resources, and comments on other actions that affect historic buildings, sites, and districts. The program goal is preservation of historic and architecturally significant buildings and locations. The Cultural Heritage Committee has seven members appointed by the City Council. 21 community oeveLopmsnt department 2002 AnnuaL►zFpoat Board of Appeals The Board of Appeals holds hearings on appeals of orders, decisions or determinations made by the Building Official relative to the application and interpretations of the Construction and Fire Codes. 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