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HomeMy WebLinkAbout10/07/2003, AGENDA council agenda CITY OF SAN LU IS OBISPO CITY HALL, 9 9 0 PALM . STREET Tuesday, October 7, 2003 Action Update 4:00 P.M. REGULAR MEETING Council Chamber 990 Palm Street CALL TO ORDER: Mayor Dave Romero PLEDGE OF ALLEGIANCE ROLL CALL: Council Members John Ewan, Ken Schwartz, Allen K. Settle, Vice Mayor Christine Mulholland, Mayor Dave Romero INTRODUCTION Finance Director Statler introduced Jennifer Thompson, Accounting Assistant in the Finance and Information Technology Department. BUSINESS ITEMS 1. ADJUSTMENT TO THE FIXED PRICE FOR THE 919 PALM STREET PROPERTY— PROJECT NO. 90323. (MCCLUSKEY/ELLIOTT—45 MINUTES) RECOMMENDATION: 1) Approve changes that will increase the final fixed price for the 919 Palm Street building from $10,641,715 to $12,169,947 in order to proceed with construction and acquisition. 2) Because of technological obsolescence of an EIR mitigation measure and the environmental benefits of an added project element, adopt a resolution approving an addendum to the final EIR to provide for elimination of the requirement to install two charging stations for battery-powered vehicles. 3) Appropriate from bond issue proceeds an additional $1,524,189 to the Parking Fund portion of the 919 Palm Street project budget. 4) Appropriate from bond issue proceeds an additional $816,100 to the General Fund portion of the 919 Palm Street project budget. ACTION: 1)Approved(4:1, Mulholland) 2) Resolution No. 9485(2003 Series) adopted. (5:0). 3-4)Approved. (4:1, Mulholland) 1 Council Agenda Tuesday, October 7, 2003 Action Update 2. DISCUSSION REGARDING RELINQUISHMENT OF STATE.HIGHWAYS 1 & 227. (MCCLUSKEY/WALTER - 30 MINUTES) RECOMMENDATION: Provide direction to staff to pursue relinquishment options for State Highways 1 and 227 and begin discussions with local State elected officials to introduce necessary legislation in the next session. ACTION: 1) Direction provided to staff to proceed as two separate processes so that one does not entangle the other. (4:1, Romero)2)Staff to set up a meeting with Caltrans to discuss signal timing issues on Hwy 1. PUBLIC HEARING 3. SUB-AREA TRANSPORTATION IMPACT FEE FOR THE LOS OSOS VALLEY ROADIUS 101 INTERCHANGE PROJECT. (MCCLUSKEY/BOCHUM -30 MINUTES) RECOMMENDATION: Adopt a resolution amending the City's transportation impact. fees by establishing a "sub-area" fee to assist in funding improvements to the Los Osos Valley Road/US 101 interchange. ACTION: 1) Resolution No. 9486(2003 Series)adopted. (5:0). Staff will prepare a corrected map to be attached to the resolution. PRESENTATION Mayor Romero presented a proclamation to Ann Havlik for Dental Hygiene Month. Mayor Romero presented a proclamation to Mark Shaffer. Executive Director of United Cerebral Palsy(UCP), for Disability Awareness Month. PUBUC COMMENT PERIOD FOR ITEMS NOT ON THE.AGENDA(not to exceed 15 minutes total) The Council welcomes your input. You may address the Council by completing a speaker slip and giving it to the City Clerk prior to the meeting. At this time, you may address the Council on items that are not on the agenda or items on the Consent Agenda. Time limit is three minutes. State law does not allow the Council to discuss or take action on issues not on the agenda,except that members of the Council or staff may briefly respond to statements made or questions posed by persons exercising their public testimony rights(Gov.Code Sec.54954.2). Staff maybe asked to follow up on such items. Staff reports and other written documentation relating to each item referred to on this agenda are on file in the City Clerk's Office in Room 1 of City Hall. Margaret Sigerson complained that her neighbor mutilated a live, historic oak tree on her property. The matter was referred.to the City Attomey to determine if there are any Code violations. 2 Council.Agenda Tuedu.y, October 7, 2003 Action Update Sylvia Rivas of Grover Beach reported that she was disqualified after being selected in the random drawing for an affordable housing unit in Rancho Obispo. She asserted that she meets all the eligibility requirements and asked for justice. Council referred the issue to the City Attorney. Gary Fowler complained that certain residents, himself included, were denied access to their homes during the Holiday Parade in 2002. He said he was promised to be invited to a planning meeting this year and was not. He asserted that a decision to not provide residents with parking passes was made without neighborhood input and added that he initiated a petition signed by approximately 200 neighbors asking for passes this year. Mayor Romero mentioned that the Council would consider a Resolution closing streets for the Holiday Parade on October 21st and indicated staff would provide him with a copy of the staff report prior to the meeting. Bill Alm representing Unocal, discussed a recent article in the newspaper(The Tribune, October 2, 2003)about a judgment against Unocal for contamination of property on the south side of Tank Farm Road. He argued that the article failed to acknowledge that Unocal has successfully settled hundreds of claims on the central coast and that the Tank Farm Road area continues to thrive economically despite contamination on the fringe. He added that Unocal will be preparing an Environmental Impact Report, separate from the one being prepared on the Airport Area Specific Plan, as part of an effort to remediate and create development scenarios for Tank Farm Road. In closing, he stated that Unocal is committed to working collaboratively with other agencies to find solutions and stressed that there will be opportunities forthcoming to discuss the issues. CONSENT AGENDA The Consent Agenda is approved on one motion. Council Members may pull consent items to be considered after Business items. The public may comment on any item on the Consent Calendar. C1. APPROVE MINUTES OF TUESDAY, SEPTEMBER 16. 2003 REGULAR MEETING. (PRICE) RECOMMENDATION: Waive oral reading and approve as presented. ACTION. Approved. (5:0) 3 Council Agenda Tuesuuy. October 7, 2003 Action Update C2. NEW BISHOP WATER TANK, SPECIFICATION NO. 90232A. (MCCLUSKEY/HORN) RECOMMENDATION: 1) Approve the award to and authorize the Mayor to execute a contract with Black & Veatch in the amount of $232,022 for environmental, design, right of way and construction management services for the New Bishop Water Tank. 2) Approve the transfer of $272,300 from the Distribution Master Plan Implementation Account to the New Bishop Water Tank Account. ACTION. 12)Approved. (5:0) C3. WATER TREATMENT PLANT STAFFING. (MOSS/HENDERSON) RECOMMENDATION: Appropriate $65,600 in 2003-04 and $64,200 in 2004-05 from unreserved Water Fund Working Capital in order to fund staff needs at the Water Treatment Plant. ACTION. Approved. (5:0) C4. AMEND CITY POLICY REGARDING CITY CAPITAL IMPROVEMENT PROJECTS AND RIGHT OF WAY ENCROACHMENT IN THE DOWNTOWN AREA. (MCCLUSKEY/LIVICK) RECOMMENDATION: Adopt a resolution that rescinds Resolution No. 7068 (1992 Series) and establishes a consistent City Policy regarding Capital Improvement Projects (CIP) and Right of Way Encroachments in the downtown area during the holiday season. ACTION. Resolution No. 9487(2003 Series) adopted. (5:0) C5. REPORT ON ADDED CITY CONTRUCTION IN THE DOWNTOWN AND ARCHEOLOGICAL SERVICES FOR PIPELINE REPLACEMENT PROJECT, SPECIFICATION NO. 90245A.. (MCCLUSKEY/LYNCH) RECOMMENDATION: 1) Receive a report on the consolidation of remaining City utility construction work in the Downtown, and direct staff to bring forward a proposal in the Mid-Year Budget Report to fund added Downtown pavement work at the conclusion of the projects. 2) Approve Request for Proposals for Archeological Monitoring services for the 2004 Downtown Pipeline Replacement Project Archeological Services, Specification No. 90245A. 3) Authorize staff to advertise for proposals. ACTION. 1) Report received and direction provided to staff. 2-3)Approved. (5:0) 4 Council Agenda Tuesuay, October 7, 2003 Action Update C6. ADOPT A RESOLUTION MODIFYING THE ALTA VISTA PARKING DISTRICT TO INDICATE THE RESTRICTIONS FOR THE NEWLY EXPANDED AREA APPLY ONLY FROM SEPTEMBER 15 TO JUNE 15 OF EVERY YEAR. (MCCLUSKEY/LOW ELL) RECOMMENDATION: 1) Adopt a resolution modifying the Alta Vista residential parking district to make the restrictions applicable to the new properties included in the district by Resolution No. 9455 (2003 Series) only from September 15 through June 15 of each year. 2) Rescind Resolution No. 9455 (2003 Series) ACTION. Resolution No. 9488(2003 Series) adopted, as amended(any more changes to the expanded portion of this district will require a new survey). (4:1, Schwartz) C7. SAN CARLOS SEWERLINE EASEMENT PURCHASE. (MCCLUSKEY/LYNCH) RECOMMENDATION: 1) Accept the easement from San Luis Garbage Company for completion of the San Carlos to Woodbridge sewerline project, Specification No. 90241. 2) Authorize the Mayor to sign all easement documents. 3) Authorize payment of $9,500 to San Luis Garbage Company upon close of escrow. ACTION. Approved. (5:0) C8. ORCUTT ROAD MEDIAN LANDSCAPING. (MCCLUSKEY/WALTER) RECOMMENDATION: 1) Transfer$12,000 from the CIP reserve to install median landscaping on Orcutt Road near the intersection with Broad Street. 2) Direct that landscaping be a part of any future median project. ACTION: Approved. (5.0) C9. COPELANDS PROJECT ARCHAEOLOGICAL SERVICES. (MANDEVILLE/RICCI) RECOMMENDATION: 1) Approve a contract amendment with Applied EarthWorks in the amount of $98,250, contingent upon the developer depositing with the City the amount of $49,125, with the City responsible for the remaining $49,125 under the terms of the approved MOU for this project. 2) Appropriate $49,125 from unreserved Parking Fund working capital for the City's share of this added work, with the General Fund to reimburse the Parking Fund for its share of this cost from the proceeds of the sale of the Court Street property. ACTION: Approved. (4:1, Mulholland) 5 I � ' Council Agenda -' Tuescuay, October 7, 2003 Action Update PUBLIC HEARINGS, CONTINUED 4. CONSIDERATION OF A VESTING TENTATIVE TRACT MAP AT 1636 WOODLAND DRIVE TO CREATE 23 SINGLE-FAMILY RESIDENTIAL LOTS AND ONE 27-ACRE OPEN SPACE LOT ON APPROXIMATELY 40 ACRES OF UNDEVELOPED LAND WITHIN THE CITY LIMITS, REZONING THE 13 ACRES OF DEVELOPABLE LAND FROM R-1 TO R-1-S. AND AN ENVIRONMENTAL IMPACT REPORT (EIR) (TR/R/ER 11-01). (MANDEVILLE/WHISENAND —2 HOURS) RECOMMENDATION: As recommended by the Planning Commissions a) Adopt a resolution certifying the project EIR with mitigation measures and monitoring program, based on findings; b) Introduce an ordinance rezoning the 13 acres of developable land from Single-Family Residential (R-1) to Single-Family Residential with Special Considerations (R-1-S) and the open-space lot to Conservation Open Space (C/OS- 40), based on findings; and c) Adopt a resolution approving the tentative map, with conditions, and based on findings. ACTION: a) Resolution No. 9489(2003 Series) adopted. (4:0:1, Romero recused due to a conflict of interest). b) Ordinance No. 1441 (2003 Series) introduced (3:1:1, Mulholland opposed, Romero recused), c) Resolution No. 9490(2003 Series adopted. (3:1:1, Mulholland opposed, Romero recused). 5. AMENDMENT OF THE MUNICIPAL.CODE_AND ZONING REGULATIONS RELATING TO SALES OF ALCOHOL.FROM SERVICE STATIONS (TA 108- 03). (MANDEVILLE/DUNSMORE — 1 HOUR) PLANNING COMMISSION RECOMMENDATION: 1) Introduce an ordinance amending a Municipal Code Section 5.36.020 and Zoning Regulations Sections 17.08.040 and 17.100 pertaining to sales of alcohol from service stations as presented by staff to the Planning Commission. 2) Notwithstanding the above, consider revision of proposed Municipal Code Section 5.36.020 to include a distance restriction on ancillary retail facilities to service stations. CAO RECOMMENDATION: Introduce an ordinance amending the Municipal Code Section 5.36.020 and Zoning Regulations Sections 17.08.040 and 17.100 pertaining to sales of alcohol from service stations, including a new distance restriction incorporated into Section 17.08.040 regarding concurrent sales of fuel and beer or wine. ACTION: Item tabled. Staff directed to come back with more information at a later date, which would include a revised proposal consistent with State law regarding alcohol sales at service stations, a definition of"service station"and research to be provided by the Police Chief regarding drinking and driving. (3:1:1, Schwartz opposed, Settle recused due to a potential conflict of interest). 6 Council Agenda Tuesday, October 7, 2003 Action Update COUNCIL LIAISON REPORTS (not to exceed 15 minutes) Council Members report on conferences or other City activities. Time limit-3 minutes. Deferred due to time. COMMUNICATIONS (not to exceed 15 minutes) At this time, any Council Member or the City Administrative Officer may ask a question for clarification, make an announcement, or report briefly on his or her activities. In addition, subject to Council Policies and Procedures, they may provide a reference to staff or other resources for factual information, request staff to report back to the Council at a subsequent meeting concerning any matter, or take action to direct staff to place a matter of business on a future agenda(Gov. Code Sec. 54954.2). Mayor Romero's Communication item continued to October 21'. A. ADJOURN. 7 ' ATTACHMENT A RANCHO OBISPO AFFORDABLE HOUSING 1. FINANCIAL AND RESIDENCY REQUIREMENTS }�� To be eligible to purchase an affordable unit, the applicant must meet the following requirements. The applicants must provide sufficient information to the Housing Authority of the City of San Luis Obispo to verify the requirements have been met. • The applicant's total _annual" household .income is equal to or_"Te`ss than the maximum allowable household income, as specified..in the City's Affordable Housing Standards and referenced on the application. The Housing Authority will certify incomes of all adult household members in calculating total household income. Income is described in Section 2. • The applicant has secured a loan pre-qualification letter for a mortgage equal to the total purchase price, less down payment, through a federally or state regulated housing lender. • The applicant has shown he has sufficient funds to pay the required down payment, monthly mortgage cost and other costs associated with purchasing the home without a co-signer to guarantee income or credit. No persons other than residents of the affordable home may be listed on the grant deed as owners. • Gift amount (if applicable) shall NOT exceed a maximum of 20% of the purchase price. Gift amount is not included in calculation of applicant's assets. • The household's total assets do not exceed one-half of the purchase price of the affordable home. Assets are described in Section 3. • The applicant agrees to follow City affordability restrictions, including a resale restriction to eligible buyers only, and to grant the City of San Luis Obispo or its Housing Authority first right of refusal to purchase the property, pursuant to the City's Affordable Housing Standards. • The affordable home must be owner occupied. The applicant must agree to use the home as his/her primary residence. The applicant and co-applicant must reside in the County of San Luis Obispo or be employed in the City of San Luis Obispo's Urban Area, as shown in Attachment C. • Applicant must be a U.S. citizen or have the right to permanently reside in the United States. Rancho Obispo Financial a residency Requirements . Page 2 2. INCOME INCLUSIONS AND EXCLUSIONS INCOME INCLUSIONS • The gross amount (before any payroll deductions) of wages, salaries, overtime pay, commissions, fees, tips, bonuses and other compensation for personal services; however, only that portion of overtime pay, commissions, and bonuses that are likely .to continue for at least the coming year will be included. • The net income from the operation of a business, profession or active fanning. The Housing Authority will not make allowances for depreciation of capital assets in determining the net business income. The Housing Authority also reserves the right to review additional business expenses and to exclude any expenses that are unlikely to continue or are unnecessary. • Interest, dividends and other net income of any kind from real or personal property (expenditures for amortization of capital indebtedness and an allowance for depreciation of capital assets shall not be deducted to determine the net income from real or personal property. • The gross amount of periodic payments received from Social Security for all household members, regardless of age. • The gross amount of periodic payments from annuities, insurance policies, retirement funds, pensions, disability or death benefits and other similar types of periodic receipts, including a lump-sum payment for the delayed start of a periodic payment. • Payments in lieu of earnings, such as unemployment, worker's compensation and severance pay. • Periodic allowances such as alimony and separate maintenance, child support payments received, housing allowances received and regular contributions or gifts received from persons not residing in the dwelling. • That portion of scholarships provided for general living expenses, transportation and miscellaneous personal expenses. • Lump-sum assets (gifts, inheritances, etc.) received in the previous two years prior to application unless the applicant is disabled or retired. ATTACHMENT E EXCERPTS FROM CITY AFFORDABLE HOUSING STANDARDS RANCHO OBISPO AFFORDABLE HOUSING Background As a condition of development approval, the developer of the Rancho Obispo Residential Subdivision is required to provide affordable housing. The City of San Luis Obispo requires new development projects to provide affordable housing for very-low, low, or moderate income households by: 1) building affordable housing in conjunction with new residential or commercial development, or 2) by paying an "in-lieu fee" to support the development of aff6rdable housing citywide, or 3) by contributing real property, including land or existing dwellings, to be used as affordable housing, or 4) by a combination of these methods. The developer of Rancho Obispo has chosen to meet this requirement by offering seven (7) single family homes to be sold at prices deemed affordable to moderate income households under the City's Affordable Housing Standards. The developer will also be offering (through separate application to the City's Housing Authority) thirteen (13) apartment units at rent levels deemed affordable for low- and moderate-income households. Because of the high demand expected, the single-family homes will be offered for sale to eligible buyers through a lottery. To participate in the lottery, prospective buyers must submit an application and must certify that they meet the residency and financial requirements described in Attachment.A. How the Standards Are Determined To qualify, prospective buyers' annual gross household incomes must meet the City's standards for Moderate Income. These standards are summarized on the application and below, in Table 1. The standards are prepared by the Community Development Department and are updated periodically to show income limits for the County of San Luis Obispo as published by the State Department of Housing and Community Development (HCD). By law, the upper income limit for"moderate-income" households is 120 percent of the median County income. TABLE 1: 2002 ANNUAL MODERATE INCOME LIMITS $ NUMBER OF PERSONS IN HOUSEHOLD 1 2 3 4 5 6 7 8 Maximum 48,500 55,400 62,350 69,250 74,800 80,350 85,850 91,400 Gross Income Excerpts from City of SaT is Obispo Affordable Housing Stand,, Page 2 How Buyers Will Be Selected Prospective buyers must submit a completed and signed application and a loan prequalification letter with a $25.00 non-refundable application fee to The Housing Authority of the City of San Luis Obispo by 5 p.m. on Monday, June 2, 2003. The Housing Authority will review application materials for completeness. At the sole discretion of the Housing Authority, applicants who meet the eligibility requirements will receive a lottery ticket. A matching ticket will be entered into a lottery, tentatively scheduled to be held on'July 4, 2003. Applicants whose lottery ticket is selected will be asked to provide detailed financial and residency information along with a $75.00 non- refundable processing fee to certify the accuracy of their applications. Once eligibility information is certified accurate, the first 7 applicants will each be offered the opportunity to enter into a purchase agreement for one of the affordable homes. If an applicant is determined not to meet eligibility requirements or chooses not to purchase a home within a designated period, the opportunity to purchase an affordable home will be offered to the applicants holding the next consecutive lottery ticket drawn (e.g. 8`h, 9`h and so on) until all 7 homes are sold. How Long Term Affordability Is Maintained The developer has entered into an agreement with the City to guarantee that the 7 homes will remain affordable for moderate-income households for 30 years from the initial date of sale. The City will maintain affordability by holding an equity interest in the property ("silent second') The City holds_a_promissory note..and_deed of trust, recorded on the. _.... .. ... .. property prior to sale of the property. The amount of the note is based on the monetary difference between the home's initial or "affordable" purchase price and the initial appraised value or market rate sales price. This amount becomes as an "affordability loan" or"silent second"payable to the City. The loan accrues interest at a rate set by the City when the note is executed, amortized over 30 years. Monthly payments (principal plus interest) on the affordability loan are waived as long as eligible residents continue to own and reside in the property. The buyer also agrees to restrictive covenants that: 1) limit the property's resale price to prices deemed affordable under then current City Affordable Housing Standards; and 2) limit buyers to persons qualifying as "moderate income" under the Affordable Housing Standards. Upon sale; transfer, gift or inheritance of the property, the City, its Housing Authority, or a non-profit agency approved by the City, shall have first right of refusal to purchase the property at its current appraised value. The consideration for the City's first right of refusal shall consist of 1 percent of the remaining affordable loan balance. The balance of the City's loan, after deducting the 1% first right of refusal cost, shall be credited toward the purchase price if the City, its Housing Authority or non-profit agency chooses to exercise its purchase option. After 30 years, the City's note, including principal and interest, is retired and all affordability restrictions expire. council acEnba CITY OF SAN LUIS OBISPO CITY HALL, 990 PALM STREET Tuesday, October 7, 2003 4:00 P.M. REGULAR MEETING Council Chamber 990 Palm Street CALL TO ORDER: Mayor Dave Romero PLEDGE OF ALLEGIANCE ROLL CALL: Council MembersJohnEwan, Ken Schwartz, Allen K. Settle, Vice Mayor Christine Mulholland, Mayor Dave Romero INTRODUCTION INTRODUCTION OF NEW EMPLOYEE IN THE FINANCE AND INFORMATION TECHNOLOGY DEPARTMENT; JENNIFER THOMPSON, ACCOUNTING ASSISTANT. (STATLER) ® City Council regular meetings are televised live on Charter Channel 20. The City of San Luis Obispo is committed to include the disabled in all of its services, programs, and activities. Telecommunications Device for the Deaf (805) 781-7410. Please speak to the City Clerk prior to the meeting if you require a hearing amplification device. For more agenda information,call 781-7103. Council Agenda Tuesauy, October 7, 2003 BUSINESS ITEMS 1. ADJUSTMENT TO THE FIXED PRICE FOR THE 919 PALM STREET PROPERTY-PROJECT NO. 90323. (MCCLUSKEY/ELLIOTT—45 MINUTES) RECOMMENDATION: 1) Approve changes that will increase the final fixed price for the 919 Palm Street building from $10,641,715 to $12,169,947 in order to proceed with construction and acquisition. 2) Because of technological obsolescence of an EIR mitigation measure and the environmental benefits of an added project element, adopt a resolution approving an addendum to the final EIR to provide for elimination of the requirement to install two charging stations for battery-powered vehicles. 3) Appropriate from bond issue proceeds an additional $1,524,189 to the Parking Fund portion of the 919 Palm Street project budget. 4) Appropriate from bond issue proceeds an additional $816,100 to the General Fund portion of the 919 Palm Street project budget. 2. DISCUSSION REGARDING RELINQUISHMENT OF STATE HIGHWAYS 1 & 227. (MCCLUSKEY/WALTER— 30 MINUTES) RECOMMENDATION: Provide direction to staff to pursue relinquishment options for State Highways 1 and 227 and begin discussions with local State elected officials to introduce necessary legislation in the next session. PUBLIC HEARING 3. SUB-AREA TRANSPORTATION IMPACT FEE FOR THE LOS OSOS VALLEY ROAD/US 101 INTERCHANGE PROJECT. (MCCLUSKEY/BOCHUM —30 MINUTES) RECOMMENDATION: Adopt a resolution amending the City's transportation impact fees by establishing a "sub-area" fee to assist in funding improvements to the Los Osos Valley Road/US 101 interchange. 7:00 P.M. PRESENTATION PROCLAMATION.FOR NATIONAL DENTAL HYGIENE MONTH. (ROMERO/PRICE) PROCLAMATION FOR DISABILITY ACHIEVEMENT MONTH. (ROMERO/PRICE) 3 Council Agenda Tuesoay, October 7, 2003 PUBLIC COMMENT PERIOD FOR ITEMS NOT ON THE AGENDA(not to exceed 15 minutes total) the Council welcomes your input. You may address the Council by completing a speaker slip and giving it to the City Clerk prior to the meeting. At this time, you may address the Council on items that are not on the agenda or items on the Consent Agenda. Time limit is three minutes. State law does not allow the Council to discuss or take action on issues not on the agenda, except that members of the Council or staff may briefly respond to statements made or questions posed by persons exercising their public testimony rights(Gov.Code Sec.54954.2). Staff may be asked to follow up on such items. Staff reports and other written documentation relating to each item referred to on this agenda are on file in the City Clerk's Office in Room 1 of City Hall. CONSENT AGENDA The Consent Agenda is approved on one motion. Council Members may pull consent items to be considered after Business items. The public may comment on any item on the Consent Calendar. C1_ APPROVE MINUTES OF TUESDAY, SEPTEMBER 16. 2003 REGULAR MEETING. (PRICE) RECOMMENDATION: Waive oral reading and approve as presented. C2. NEW BISHOP WATER TANK, SPECIFICATION NO. 90232A. (MCCLUSKEY/HORN) RECOMMENDATION: 1) Approve the award to and authorize the Mayor to execute a contract with Black & Veatch in the amount of $232,022 for environmental, design, right of way and construction management services for the New Bishop Water Tank. 2) Approve the transfer of $272,300 from the Distribution Master Plan Implementation Account to the New Bishop Water Tank Account. C3. WATER TREATMENT PLANT STAFFING. (MOSS/HENDERSON) RECOMMENDATION: Appropriate $65,600 in 2003-04 and $64,200 in 2004-05 from unreserved Water Fund Working Capital in order to fund staff needs at the Water Treatment Plant. C4. AMEND CITY POLICY REGARDING CITY CAPITAL IMPROVEMENT PROJECTS AND RIGHT OF WAY ENCROACHMENT IN THE DOWNTOWN AREA. (MCCLUSKEY/LIVICK) RECOMMENDATION: Adopt a resolution that rescinds Resolution No. 7068 (1992. Series) and establishes a consistent City Policy regarding Capital Improvement Projects (CIP) and Right of Way Encroachments in the downtown area during the holiday season. 4 Council Agenda Tuesaay, October 7, 2003 C5. REPORT ON ADDED CITY CONSTRUCTION IN THE DOWNTOWN AND ARCHEOLOGICAL SERVICES FOR PIPELINE REPLACEMENT PROJECT, SPECIFICATION NO. 90245A. (MCCLUSKEY/LYNCH) RECOMMENDATION: 1) Receive a report on the consolidation of remaining City utility construction work in the Downtown, and direct staff to bring forward a proposal in the Mid-Year Budget Report to fund added Downtown pavement-work at the conclusion of the projects. 2) Approve Request for Proposals for Archeological Monitoring services for the 2004 Downtown Pipeline Replacement Project Archeological Services, Specification No. 90245A. 3) Authorize staff to advertise for proposals. C6. ADOPT A RESOLUTION MODIFYING THE ALTA VISTA PARKING DISTRICT TO INDICATE-THE RESTRICTIONS FOR-THE NEWLY EXPANDED AREA APPLY ONLY FROM SEPTEMBER 15 TO JUNE 15 OF EVERY YEAR. (MCCLUSKEY/LOWELL) RECOMMENDATION: 1) Adopt a resolution modifying the Alta Vista residential parking district to make the restrictions applicable to the new properties included in the district by Resolution No. 9455 (2003 Series) only from September 15 through June 15 of each year. 2) Rescind Resolution No. 9455 (2003 Series). C7. SAN CARLOS SEWERLINE.EASEMENT PURCHASE. (MCCLUSKEY/LYNCH) RECOMMENDATION: 1) Accept the easement from San Luis Garbage Company for completion of the San Carlos to Woodbridge sewerline project, Specification No. 90241. 2) Authorize the Mayor to sign all easement documents. 3) Authorize payment of $9,500 to San Luis Garbage Company upon close of escrow. C8. ORCUTT ROAD MEDIAN LANDSCAPING. (MCCLUSKEY/WALTER) RECOMMENDATION: 1) Transfer$12,000 from the CIP reserve to install median landscaping on Orcutt Road near the intersection with Broad Street. 2) Direct that landscaping be a part of any future median project. C9. COPELANDS PROJECT ARCHAEOLOGICAL SERVICES. (MANDEVILLE/RICCI) RECOMMENDATION: 1) Approve a contract amendment with Applied EarthWorks in the amount of $98,250, contingent upon the developer depositing with the City the amount of $49,125, with the City responsible for the remaining $49,125 under the terms of the approved MOU for this project. 2) Appropriate $49,125 from unreserved Parking Fund working capital for the City's share of this added work, with the General Fund to reimburse the Parking Fund for its share of this cost from the proceeds of the sale of the Court Street property. 5 Council Agenda Tuesaay, October 7, 2003 PUBLIC HEARINGS, CONTINUED 4. CONSIDERATION OF A VESTING TENTATIVE TRACT MAP AT 1636 WOODLAND DRIVE TO.CREATE 23 SINGLE-FAMILY RESIDENTIAL LOTS AND ONE 27-ACRE OPEN SPACE LOT ON APPROXIMATELY 40 ACRES OF UNDEVELOPED LAND WITHIN THE CITY LIMITS, REZONING THE 13 ACRES OF DEVELOPABLE LAND FROM R-1 TO R-1-S, AND AN ENVIRONMENTAL IMPACT REPORT(EIR) (TR/R/ER 11-01). (MANDEVILLE/WHISENAND -2 HOURS) RECOMMENDATION: As recommended by the Planning Commission: a) Adopt a resolution certifying the project EIR with mitigation measures and monitoring program, based on findings; b) Introduce an ordinance rezoning the 13 acres of developable land from Single-Family Residential (R-1) to Single-Family Residential with Special Considerations (R-1-S) and the open-space lot to Conservation Open Space (C/OS- 40), based on findings; and c) Adopt a resolution approving the tentative map, with conditions, and based on findings. 5. AMENDMENT OF THE MUNICIPAL CODE AND ZONING REGULATIONS RELATING TO SALES OF ALCOHOL FROM SERVICE STATIONS (TA 108- 03). (MANDEVILLE/DUNSMORE — 1 HOUR) PLANNING COMMISSION RECOMMENDATION: 1) Introduce an ordinance amending a Municipal Code Section 5.36.020 and Zoning Regulations Sections 17.08.040 and 17.100 pertaining to sales of alcohol from service stations as presented by staff to the Planning Commission. 2) Notwithstanding the above, consider revision of proposed Municipal Code Section 5.36.020 to include a distance restriction on ancillary retail facilities to service stations. CAO RECOMMENDATION; Introduce an ordinance amending the Municipal Code Section 5.36.020 and Zoning Regulations Sections 17.08.040 and 17.100 pertaining to sales of alcohol from service stations, including a new distance restriction incorporated into Section 17.08.040 regarding concurrent sales of fuel and beer or wine. COUNCIL LIAISON REPORTS (not to exceed 15 minutes) Council Members report on conferences or other City activities. Time limit-3 minutes. 6 f J Council Agenda Tuesaay, October 7, 2003 COMMUNICATIONS (not to exceed 15 minutes) At this time, any Council Member or the City Administrative Officer may ask a question for clarification, make an announcement, or report briefly on his or her activities. In addition, subject to Council Policies and Procedures, they may provide a reference to staff or other resources for factual information, request staff to report back to the Council at a subsequent meeting concerning any matter, or take action to direct staff to place a matter of business on a future agenda (Gov. Code Sec. 549542).. A. ADJOURN. 7 ' ATTACHMENT A RANCHO OBISPO AFFORDABLE HOUSING 1. FINANCIAL AND RESIDENCY REQUIREMENTS To be eligible to purchase an affordable unit, the applicant must meet the following requirements. The applicants must provide sufficient information to the Housing Authority of the City of San Luis Obispo to verify the requirements have been met. • The applicant's total annual household income is equal to or less than the maximum allowable household income, as specified in the City's Affordable Housing Standards and referenced on the application. The Housing Authority will certify incomes of all adult household members in calculating total household income. Income is described in Section 2. • The applicant has secured a loan pre-qualification letter for a mortgage equal to the total purchase price, less down payment, through a federally or state regulated housing lender. • The applicant has shown he has sufficient funds to pay the required down payment, monthly mortgage cost and other costs associated with purchasing the home without a co-signer to guarantee income or credit. No persons other than residents of the affordable home may be listed on the grant deed as owners. • Gift amount (if applicable) shall NOT exceed a maximum of 20% of the purchase price. Gift amount is not included in calculation of applicant's assets. • The household's total assets do not exceed one-half of the purchase price of the affordable home. Assets are described in Section 3. • The applicant agrees to follow City affordability restrictions, including a resale restriction to eligible buyers only, and to grant the City of San Luis Obispo or its Housing Authority fust right of refusal to purchase the property, pursuant to the City's Affordable Housing Standards. • The affordable home must be owner occupied. The applicant must agree to use the home as his/her primary residence. The applicant and co-applicant must reside in the County of San Luis Obispo or be employed in the City of San Luis Obispo's Urban Area, as shown in Attachment C. • Applicant must be a U.S. citizen or have the right to permanently reside in the United States. Rancho Obispo Financial a residency Requirements Page 2 2. INCOME INCLUSIONS AND EXCLUSIONS INCOME INCLUSIONS • The gross amount (before any payroll deductions) of wages; salaries, overtime pay, commissions, fees, tips,bonuses and other compensation for personal services; however, only that portion of overtime pay, commissions, and bonuses that are likely to continue for at least the coming year will be included. • The net income from the operation of a business, profession or active farming. The Housing Authority will not make allowances for depreciation of capital assets in determining the net business income. The Housing Authority also reserves the right to review additional business expenses and to exclude any expenses that are unlikely to continue or are unnecessary. • Interest, dividends and other net income of any kind from real or personal property (expenditures for amortization of capital indebtedness and an allowance for depreciation of capital assets shall not be deducted to determine the net income from real or personal property. • The gross amount of periodic payments received from Social Security for all household members, regardless of age. • The gross amount of periodic payments from annuities, insurance policies, retirement funds, pensions, disability or death benefits and other similar types of periodic receipts, including a lump-sum payment for the delayed start of a periodic payment. • Payments in lieu of earnings, such as unemployment, worker's compensation and severance pay. • Periodic allowances such as alimony and separate maintenance, child support payments received, housing allowances received and regular contributions or gifts received from persons not residing in the dwelling. • That portion of scholarships provided for general living expenses, transportation and miscellaneous personal expenses. • Lump-sum assets (gifts, inheritances, etc.) received in the previous two years prior to application unless the applicant is disabled or retired. ATTACHMENT L EXCERPTS FROM CITY AFFORDABLE HOUSING STANDARDS RANCHO OBISPO AFFORDABLE HOUSING Background As a condition of development approval, the developer of the Rancho Obispo Residential Subdivision is required to provide affordable housing. The City of San Luis Obispo requires new development projects to provide affordable housing for very-low, low, or moderate income households by: 1) building affordable housing in conjunction with new residential or commercial development, or 2) by paying an "in-lieu fee" to support the development of affordable housing citywide, or 3) by contributing real property, including land or existing dwellings, to be used as affordable housing, or 4) by a combination of these methods. The developer of Rancho Obispo has chosen to meet this requirement by offering seven (7) single family homes to be sold at prices deemed affordable to moderate income households under the City's Affordable Housing Standards. The developer will also be offering (through separate application to the City's Housing Authority) thirteen (13) apartment units at rent levels deemed affordable for low- and moderate-income households. Because of the high demand expected, the single-family homes will be offered for sale to eligible buyers through a lottery. To participate in the lottery, prospective buyers must submit an application and must certify that they meet the residency and financial requirements described in Attachment A. How the Standards Are Determined To qualify, prospective buyers' annual gross household incomes must meet the City's az star s or Moderate Income. These standards are summarized on the application and below, in Table 1. The standards are prepared by the Community Development Department and are updated periodically to show income limits for the County of San i Luis Obispo as published by the State Department of Housing and Community Development (HCD). By law, the upper income limit for"moderate-income"households is 120 percent of the median County income. TABLE 1: 2002 ANNUAL MODERATE INCOME LIMITS $ NUMBER OF PERSONS IN HOUSEHOLD 1 2 3 4 5 6 7 8 Maximum 48,500 55,400 62,350 69,250 74,800 80,350 85,850 91,400 Gross Income Excerpts from City of Sa is Obispo Affordable Housing Stand, Page 2 - How Buyers Will Be Selected Prospective buyers must submit a completed and signed application and a loan prequalification letter with a $25.00 non-refundable application fee to The Housing Authority of the City of San Luis Obispo by 5 p.m. on Monday, June 2, 2003. The Housing Authority will review application materials for completeness. At the sole discretion of the Housing Authority, applicants who meet the eligibility requirements will receive a lottery ticket. A matching ticket will be entered into a lottery, tentatively scheduled to be held on'July 4, 2003. Applicants whose lottery ticket is selected will be asked to provide detailed financial and residency information along with a $75.00 non- refundable processing fee to certify the accuracy of their applications. Once eligibility information is certified accurate, the fust 7 applicants will each be offered the opportunity to enter into a purchase agreement for one of the affordable homes. If an applicant is determined not to meet eligibility requirements or chooses not to purchase a home within a designated period; the opportunity to purchase an affordable home will be offered to the applicants holding the next consecutive lottery ticket drawn (e.g. 8`h, 9ch and so on) until all 7 homes are sold. How Long Term Affordability Is Maintained The developer has entered into an agreement with the City to guarantee that the 7 homes will remain affordable for moderate-income households for 30 years from the initial date of sale. The City will maintain affordability by holding an equity interest in the property ("silent second'). The City holds a promissory note and deed of trust,..recorded on the property prior to sale of the property. The amount of the note is based on the monetary difference between the home's initial or "affordable" purchase price and the initial appraised value or market rate sales price. This amount becomes as an "affordability loan" or"silent second"payable to the City. The loan accrues interest at a rate set by the City when the note is executed, amortized over 30 years. Monthly payments (principal plus interest) on the affordability loan are waived as long as eligible residents continue to own and reside in the property. The buyer also agrees to restrictive covenants that: 1) limit the property's resale price to prices deemed affordable under then current City Affordable Housing Standards, and 2) limit buyers to persons qualifying as "moderate income" under the Affordable Housing Standards. Upon sale, transfer, gift or inheritance of the property, the City, its Housing Authority, or a non-profit agency approved by the City, shall have first right of refusal to purchase the property at its current appraised value. The consideration for the City's first right of refusal shall consist of 1 percent of the remaining affordable loan balance. The balance of the City's loan, after deducting the 1% first right of refusal cost, shall be credited toward the purchase price if the City, its Housing Authority or non-profit agency chooses to exercise its purchase option. After 30 years, the City's note, including principal and interest, is retired and all affordability restrictions expire.