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HomeMy WebLinkAbout07-23-14City of San Luis Obispo, Agenda, Planning Commission Any writings or documents provided to a majority of the Planning Commission regarding any item on this agenda will be made available for public inspection in the Community Development, 919 Palm Street, during normal business hours. SAN LUIS OBISPO PLANNING COMMISSION AGENDA Council Chamber City Hall - 990 Palm Street San Luis Obispo, CA 93401 July 23, 2014 Wednesday 6:00 p.m. CALL TO ORDER/PLEDGE OF ALLEGIANCE ROLL CALL: Commissioners Hemalata Dandekar, Michael Draze, John Fowler, Ronald Malak, William Riggs, Vice-Chairperson Michael Multari, and Chairperson John Larson ACCEPTANCE OF AGENDA: Commissioners or staff may modify the order of items. MINUTES: Minutes of June 11, 2014. Approve or amend. PUBLIC COMMENT: At this time, people may address the Commission about items not on the agenda. Persons wishing to speak should come forward and state their name and address. Comments are limited to five minutes per person. Items raised at this time are generally referred to staff and, if action by the Commission is necessary, may be scheduled for a future meeting. PUBLIC HEARINGS: NOTE: Any court challenge to the action taken on public hearing items on this agenda may be limited to considering only those issues raised at the public hearing or in written correspondence delivered to the City of San Luis Obispo at, or prior to, the public hearing. Any decision of the Planning Commission is final unless appealed to the City Council within 10 days of the action (Recommendations to the City Council cannot be appealed since they are not a final action.). Any person aggrieved by a decision of the Commission may file an appeal with the City Clerk. Appeal forms are available in the Community Development Department, City Clerk’s office, or on the City’s website (www.slocity.org). The fee for filing an appeal is $273 and must accompany the appeal documentation. If you wish to speak, please give your name and address for the record. Please limit your comments to three minutes; consultant and project presentations limited to six minutes. 1. City-Wide. GPI/ER 15-14: Housing Element Update: Review of proposed General Plan Housing Element policies and programs. City of San Luis Obispo – Community Development Dept., applicant. (Tyler Corey) Planning Commission Agenda Page 2 The City of San Luis Obispo is committed to include the disabled in all of its services, programs, and activities. Please contact the City Clerk or staff liaison prior to the meeting if you require assistance. COMMENT AND DISCUSSION: 2. Staff a. Agenda Forecast 3. Commission ADJOURNMENT Presenting Planner: Tyler Corey Meeting Date: July 23, 2014 Item Number: 12 PLANNING COMMISSION AGENDA REPORT SUBJECT:Housing Element Update: Review Proposed Policies and Programs PROJECT ADDRESS: Citywide BY: Tyler Corey, Housing Programs Manager Phone Number: 781-7169 e-mail: tcorey@slocity.org FILE NUMBER: GPI/ER 15-14 FROM: Kim Murry, Deputy Director RECOMMENDATION:Review the proposed policy and program changes to Chapter 3 of the Housing Element and provide comments or direction as appropriate. SITE DATA ApplicantCityofSanLuisObispo RepresentativeTylerCorey,HousingPrograms Manager ZoningMultiple GeneralPlanMultiple SiteArea~13squaremiles Environmental Status Environmentalreviewtobe completed SUMMARY On February 12, 2014, the Planning Commission received a presentation regarding Housing Element status and provided input on items and issues that should be considered in the update process (Attachment 1). Staff has considered and incorporated those comments in Chapter 3 of the document where appropriate as well as other input received through the public outreach process. This chapter contains new policies and programs, revised policies and programs, and policies and programs that are proposed to remain without substantive changes. Additions or changes have been recommended where appropriate to reflect the changing needs, resources, and conditions in the community, and to respond to changes in housing law. Proposed changes are shown in legislative draft format. 1.0 COMMISSION’S PURVIEW The Planning Commission is responsible for reviewing proposed changes to the General Plan and for making recommendations to the City Council under Government Code section §65353. The Planning Commission has two primary roles in the Housing Element update process: 1) provide a forum for PC1 - 1 g GPI/ER 15-14 (Citywide) Page 2 public discussion and consensus building; 2) provide policy and program direction. The Draft Housing Element and associated environmental document must be considered by the Planning Commission in at least one public hearing before final action can be taken on the item. Staff anticipates this public hearing will occur in the fall once the City has received initial comments on the draft document from the State Department of Housing and Community Development (HCD). The Commission’s recommendation will then be forwarded to the City Council for final action on the Housing Element. 2.0 PROJECT INFORMATION The Planning Commission should review the legislative draft of Chapter 3 and provide comments or direction as appropriate (Attachment 2). Some of the more substantive proposed changes or additions are highlighted below for consideration, however, Planning Commissioners may comment and/or provide direction on any of the policies or programs. Where policies and programs appear to be meeting their objective and are recommended to be continued, no further discussion is needed. Where substantive changes or new policies or programs are proposed, a brief description follows to explain how the modification or addition better achieves housing goals or state requirements. 4.6 Program – Mixed-Income Housing. This program was recommended by the Task Force for the Land Use and Circulation Elements update (TF-LUCE) based on community input to implement Policy 4.2 by amending the Inclusionary Housing Ordinance and Affordable Housing Incentives to require deed restricted affordable housing units in a development project be comparable in size, appearance and basic quality to the market-rate units. This program seeks to address concerns that residential development projects offer the smallest and least desirable units in a project to meet their affordable housing obligations. 6.8 Policy & 6.11 Program – Housing Production. This policy and program were recommended by the TF-LUCE based on community input to incentivize the development of smaller apartments and efficiency units in the Downtown Core (C-D Zone) where appropriate. The intent of the policy is to increase the production of smaller, higher density housing on the presumption that this would produce dwellings that would be “affordable by design”; and to remove barriers to density when projects can meet development standards (i.e. floor area ratios, parking, height, etc). 6.30 Program – Housing Production. This program was recommended by community input to consider modifying the City’s residential development impact fee schedule to be based on the size, number of bedrooms and room counts in a dwelling unit. Currently, the City charges development impact fees based on housing type (i.e. single-family residential, multi-family residential, SDU, etc.). The proposed program would review alternatives to this approach that would be proportional to the impacts associated with the dwelling unit being developed. 7.12 Program – Neighborhood Quality. This program supports existing Neighborhood Service and Proactive Code Enforcement Programs. These programs have proven successful in improving the wellness and desirability of many of the City’s neighborhoods. This program was based on community input in response to the Cal Poly dorm project proposed at Slack and Grand. 7.13 Program – Neighborhood Quality. The 2010 U.S. Census indicates the City’s housing tenure is approximately 39% owner-occupied and 61% renter-occupied. Between 2000 and 2010 the City saw a 2% decrease in owner-occupied housing units. This shift is consistent with ownership trends during the period for the County and State. During the public outreach process, staff received several comments PC1 - 2 GPI/ER 15-14 (Citywide) Page 3 related to the need to increase owner-occupied housing in the City. The proposed program calls for the evaluation of strategies that would further the goal of increasing owner occupied housing opportunities. 8.11 Policy & 8.23 Program – Special Housing Needs. One legislative change that was adopted during the past housing element cycle that must be addressed in the current update is Senate Bill 812. This bill requires housing elements include an analysis of the special housing needs of the disabled, including persons with developmental disabilities. The U.S. Census does not record developmental disabilities. According the U.S. Administration on Developmental Disabilities, an accepted estimate of the percentage of the population that can be defined as developmentally disabled is 1.5 percent. This equates to approximately 683 persons in the City with developmental disabilities. The proposed policy encourages amendments to regulations that support the special housing needs of disabled persons. The proposed program directs the City to seek grant opportunities for housing construction and rehabilitation specifically targeted for persons with developmental disabilities. 8.12 Policy & 8.24 & 8.25 Programs – Special Housing Needs. The City has been a long standing supporter of service provision to those who are experiencing homelessness. Implementing strategies and programs that help transition people out of homelessness has been a regional effort. The City has partnered with the County, other cities, and nonprofit entities to provide programs that advance goals outlined in the San Luis Obispo Countywide 10-year Plan to End Homelessness (10-Year Plan). The City adopted the following Major City Goal as a top priority in the 2013-15 Financial Plan: Implement Comprehensive Strategies to Address Homelessness. The listed objectives and associated work plan for this goal include encouraging improved and expanded services and programs in conjunction with the City’s partner organizations. The proposed policy and programs further the 10- Year Plan and the City’s Major City Goal to address homelessness. 8.13 Program – Special Housing Needs. This program was modified to include language for support of the Housing First and Rapid Re-housing models of supportive housing. These programs help people to quickly re-access permanent housing, thus minimizing the physical and emotional damage caused by homelessness and putting them in a position to recover more quickly. The housing provided is linked with intensive case management, treatment and wrap-around services. 9.6 Policy & 9.13 Program – Sustainable Housing, Site, and Neighborhood Design. This policy and program support goals outlined in the City’s Climate Action Plan by seeking to improve the energy efficiency of the City’s housing stock. The proposed program considers financing options for sustainable home improvements such as solar panels, heating and cooling systems, and windows. One program in particular, emPower, has recently expanded to into San Luis Obispo County. This program was developed by the County of Santa Barbara to help homeowners overcome obstacles to making energy saving improvements to their homes. EmPower makes home upgrade projects easier and more affordable through incentives, financing, qualified contractors and expert energy advice. 9.12 Program – Sustainable Housing, Site, and Neighborhood Design. This program was recommended by community input to allow dwelling units to be constructed at their smallest allowable size. The California Building Code allows the construction of dwelling units to a minimum size of 150 s.f. for occupancy by a maximum of two persons. The Zoning Regulations do not specify a minimum PC1 - 3 GPI/ER 15-14 (Citywide) Page 4 size for dwelling units. However, maximum size limits are established for both studio apartments and one-bedroom dwellings at 450 s.f. and 1,000 s.f., respectively. This program seeks to identify incentives, such as reduced impact fees and property development standards, for projects that propose dwelling units near the minimum allowed size limit of 150 s.f. Public Outreach Over the past year, the City conducted extensive public outreach to identify housing needs, issues and opportunities in the community. The primary goals of the outreach effort were to: x Actively engage the diverse populations of the City in discussions about housing needs. x Ensure that affected residents, housing providers, homeless services providers, and funding entities have opportunities to be actively involved in the process. Workshops and Meetings Staff facilitated public workshops and meetings (total of 10) over the past year. This included community workshops on November 14, 2013, and July 16, 2014, and meetings with the following groups and organizations: x Workforce Housing Coalition – January 9, 2014 x Planning Commission – February 12, 2014 x Association of Realtors – March 4, 2014 x Economic Vitality Corporation – March 18, 2014 x Chamber of Commerce – April 3, 2014 x Home Builders Association – April 10, 2014 x Residents for Quality Neighborhoods – April 16, 2014 x Workforce Housing Summit – May 28, 2014 Staff compiled feedback from these workshops and meetings as well as other correspondence into three categories of criteria: needs, issues and opportunities. These categories were used throughout the public outreach process for consistency. The following is an overview of public feedback and comments received for each category, which have been considered and incorporated into Chapter 3 of the document where appropriate: Needs x Affordable and workforce housing x Senior and veteran housing x Transitional housing for children out of foster care and those with mental health issues x Small apartments and efficiency units for seniors and homeless x Increased owner-occupied housing Issues x Financing for affordable housing production x Preservation and rehabilitation of existing housing stock x High property cost and low incomes x Development fees proportional to impact x Affordable housing units comparable to market-rate units PC1 - 4 GPI/ER 15-14 (Citywide) Page 5 Opportunities x Incentives for single room occupancy (SRO) and secondary dwelling units x Increase residential densities where appropriate x Allow greater building height to accommodate housing x Creatively utilize existing housing resources Next Steps The next steps in the process include transmitting the preliminary Draft Housing Element with comments from this meeting to HCD for preliminary review and comment. This is expected to occur during the next several weeks. HCD’s initial review is expected to take approximately 4-6 weeks. The draft document will be posted on the City’s website at www.slocity.org. Staff will then prepare the Initial Study of Environmental Impact prior to formal review of the document by the Planning Commission and City Council in fall. 6.0 ALTERNATIVES Continue the project with direction to staff on pertinent issues. 7.0 ATTACHMENTS 1. Planning Commission minutes from the February 12, 2014, meeting 2. Chapter 3 of the Housing Element (Legislative Draft) PC1 - 5 $WWDFKPHQW PC1 - 6 $WWDFKPHQW PC1 - 7 $WWDFKPHQW PC1 - 8 $WWDFKPHQW PC1 - 9 Chapter 3 GOALS, POLICIES AND PROGRAMS Goal 1: Safety Provide safe, decent shelter for all residents. Policies 1.1 Assist those citizens unable to obtain safe shelter on their own. 1.2 Support and inform the public about fair housing laws and programs that allow equal housing access for all city residents. 1.3 Maintain a level of housing code enforcement sufficient to correct unsafe, unsanitary or illegal conditions and to preserve the inventory of safe housing. Programs 1.4 Continue to pProvide financial assistance to extremely low, very low, low and moderate income homeowners and renters for the rehabilitation of rental housing units, single- family houses or mobile homes using Federal, State and local housing funds, such as Community Development Block Grant Funds. 1.5 Continue code enforcement to expedite the removal of illegal or unsafe dwellings, to eliminate hazardous site or property conditions, and resolve chronic building safety problems. 1.6 Enact a Rental Inspection Program to improve the condition of the City’s housing stock. 1.7 Continue to support local and regional solutions to homelessness by funding programs such as the Maxine Lewis Memorial Shelter and The Prado Day Center. 1.8 Create an educational campaign for owners of older residences informing them of ways to reduce the seismic hazards commonly found in such structures, and encouraging them to undertake seismic upgrades. Goal 2: Affordability Accommodate affordable housing production that helps meet the City’s quantified objectives. Policies 2.1 Income Levels For Affordable Housing households. For purposes of this Housing Element, affordable housing is that which is obtainable by a household with a particular $WWDFKPHQW PC1 - 10 City of San Luis Obispo Housing Element, July 2014 3 income level, as further described in the City’s Affordable Housing Standards. Housing affordable to Extremely Low, Very Low, Low, and Moderate income persons or households shall be considered “affordable housing.” Income levels are defined as follows: Extremely low 30% or less of County median household income Very low: 31 to 50% of County median household income. Low: 51% to 80% of County median household income. Moderate: 81% to 120% of County median household income. Above moderate: 121% or more of County median household income. 2.2 Index of Affordability. The Index of Affordability shall be whether the monthly cost of housing fits within the following limits: ‰For extremely low income households, not more than 25% of monthly income. ‰For very low- and low-income households, not more than 25% of monthly income. ‰For moderate income households, not more than 30% of monthly income. ‰For above-moderate income households, no index. These indices may be modified or expanded if the State of California modifies or expands its definition of affordability for these income groups. 2.3 For housing to qualify as "affordable" under the provisions of this Element, guarantees must be presented that ownership or rental housing units will remain affordable for the longest period allowed by State law, or for a shorter period under an equity-sharing or housing rehabilitation agreement with the City. 2.4 Encourage housing production for all financial strata of the City's population, in the proportions shown in the Regional Housing Needs Allocation, for the 2014 - 20192007 – 2014 planning period. These proportions are: extremely low income, 121 percent, very low income, 12 percent; low income, 16 percent; moderate income, 198 percent; and above moderate income, 42 percent. Programs 2.5 Amend the Inclusionary Housing Requirement, Tables 2 and 2A (Appendix P), to provide more ways for commercial development projects to meet the requirements, such as by providing land in an amount sufficient to accommodate the number of inclusionary housing units required by the ordinance, or by converting off-site units to affordable units through deed restrictions. $WWDFKPHQW PC1 - 11 City of San Luis Obispo Housing Element, July 2014 4 2.56 Prepare criteria Continue to manage the Affordable Housing Fund so that the fund serves as a sustainable resource for supporting affordable housing development. The fund shall serve as a source of both grant funding and below-market financing for affordable housing projects; and funds shall be used to support a wide variety of housing types at the following income levels: extremely low, very low, low, and moderate, but with a focus on production efficiency to maximize housing benefits for the City’s financial investment, and to support high-quality housing projects that would not be feasible without Affordable Housing Fund support. 2.67 Continue to Rreview existing and proposed building, planning, engineering and fire policies and standards to determine whether changes are possible that could assist the production of affordable housing, or that would encourage preservation of housing rather than conversion to non-residential uses, provided such changes would not conflict with other General Plan policies. Such periodic reviews will seek to remove regulations that have been superseded, are redundant or are no longer needed. 2.78 Establish permit streamliningContinue to implement existing procedures to that speed up the processing of applications, construction permits, and water and sewer service priorities for affordable housing projects. City staff and commissions shall give such projects priority in allocating work assignments, scheduling, conferences and hearings, and in preparing and issuing reports and water and sewer service allocations. 2.89 Continue to Ppursue outside funding sources for the payment of City impact fees so that new dwellings that meet the City’s affordable housing standards can mitigate their facility and service impacts without adversely affecting housing affordability. 2.910 To the extent outside funding sources can be identified to offset impacts on City funds, exempt dwellings that meet the moderate income, Affordable Housing Standards from planning, building and engineering development review and permit fees, including water meter installation fee. Maintain exemptions for extremely-low, very-low and low- income households. 2.101 Help Continue to coordinate public and private sector actions to encourage the development of housing that meets the City’s housing needs. 2.112 Continue to Aassist with the issuance of bonds, tax credit financing, loan underwriting or other financial tools to help develop or preserve affordable units through various programs, including, but not limited to: (1) below-market financing through the SLO County Housing Trust Fund and (2) subsidized mortgages for extremely low, very-low, low- and moderate income persons and first-time home buyers, and (3) self-help or “sweat equity” homeowner housing. 2.123 Amend Affordable Housing Standards to establish a methodology for adjusting affordable housing standards and secure Council approval.Consider incorporating HOA $WWDFKPHQW PC1 - 12 City of San Luis Obispo Housing Element, July 2014 5 fees and a standard allowance for utilities in the calculation for affordable rents and home sales prices. 2.134 In conjunction with the Housing Authority and other local housing agencies, continue to provide on-going technical assistance and education to tenants, property owners and the community at large on the need to preserve at-risk units as well as the available tools to help them do so. 2.145 In conjunction with local housing providers and the local residential design community, continue to provide technical assistance to the public, builders, design professionals and developers regarding design strategies to achieve affordable housing. 2.156 Evaluate the Inclusionary Housing Ordinance requirements and the effect of Table 2A on the City’s ability to provide affordable housing in the proportions shown in the Regional Housing Needs Allocation, per Policy 2.4. 2.167 The City will evaluate and consider including a workforce level of affordability in its Affordable Housing Standards to increase housing options in the City for those making between 1210 percent and 160 percent of the San Luis Obispo County median income. This affordability category cannot be used to meet inclusionary housing ordinance requirements and is not eligible for City Affordable Housing Funds. 2.178 Evaluate andContinue to consider increasing residential densities for projects that provide on appropriate sites for housing affordable tofor low, very low and extremely low income households. Goal 3: Housing Conservation Conserve existing housing and prevent the loss of safe housing and the displacement of current occupants. Policies 3.1 Continue to Eencourage the rehabilitation, remodeling or relocation of sound or rehabitable housing rather than demolition. Demolition of non-historic housing may be permitted where conservation of existing housing would preclude the achievement of other housing objectives or adopted City goals. 3.2 Discourage the removal or replacement of housing affordable to extremely low, very- low, low- and moderate income households, and avoid permit approvals, private development, municipal actions or public projects that remove or adversely impact such housing unless such actions are necessary to achieve General Plan objectives and: (1) it can be demonstrated that rehabilitation of lower-cost units at risk of replacement is financially or physically infeasible, or (2) an equivalent number of new units comparable $WWDFKPHQW PC1 - 13 City of San Luis Obispo Housing Element, July 2014 6 or better in affordability and amenities to those being replaced is provided, or (3) the project will correct substandard, blighted or unsafe housing; and (4) removal or replacement will not adversely affect housing which is already designated, or is determined to qualify for designation as a historic resource. 3.3 Encourage seismic upgrades of older dwellings to reduce the risk of bodily harm and the loss of housing in an earthquake. 3.4 Encourage the construction, preservation, rehabilitation or expansion of residential hotels, group homes, integrated community apartments, and single-room occupancy dwellings. 3.5 Preserve historic homes and other types of historic residential buildings, historic districts and unique or landmark neighborhood features. 3.6 Preserve the fabric, amenities, yards (i.e. setbacks), and overall character and quality of life of established neighborhoods. 3.7 Encourage and Ssupport creative strategies for the rehabilitation and adaptation and reuse of residential, commercial, and industrial structures for housing. Programs 3.8 Adopt an ordinance that implements policy 3.2 to discourage removal or replacement of affordable housing. 3.9 Correct unsafe, unsanitary or illegal housing conditions, improve accessibility and energy efficiency and improve neighborhoods by collaborating with agencies offering rehabilitation programs. City will use State or Federal grants or other housing funds to implement the program and provide services such as home weatherization, repair and universal access improvements. 3.10 Preserve the number of dwellings in the Downtown Core (C-D Zone) and the Downtown Planning Area by continuing the "no net housing loss" program. so that as of the baseline date of March 30, 2004, the number of dwellings removed shall not exceed the number of dwellings added. 3.11 Identify residential properties and districts eligible for local, State or Federal historic listing and preparein accordance with guidelines and standards to help property owners repair, rehabilitate and improve properties in a historically and architecturally sensitive manner. 3.12 To encourage housing rehabilitation, amend the Inclusionary Housing Requirements to allow a reduced term of affordability for rehabilitated units, to the extent allowed by State or Federal law, with a minimum term of three years and in proportion to the level of $WWDFKPHQW PC1 - 14 City of San Luis Obispo Housing Element, July 2014 7 City assistance. 3.123 Establish a monitoring and early warning system to trackContinue to monitor and track affordable housing units at-risk of being converted to market rate housing. 3.134 Working with non-profit organizations, faith-based organizations, or the Housing Authority of the City of San Luis Obispo, the City will encourage rehabilitation of residential, commercial or industrial buildings to expand extremely low, very-low, low or moderate income rental housing opportunities. Goal 4: Mixed-Income Housing Preserve and accommodate existing and new mixed-income neighborhoods and seek to prevent neighborhoods or housing types that are segregated by economic status. Policies 4.1 Within newly developed neighborhoods, housing that is affordable to various economic strata should be intermixed rather than segregated into separate enclaves. The mix should be comparable to the relative percentages of extremely low, very-low, low, moderate and above-moderate income households in the City’s quantified objectives. 4.2 Include both market-rate and affordable units in apartment and residential condominium projects and intermix the types of units. Affordable units should be comparable in size, appearance and basic quality to market-rate units. 4.3 Extremely-low and very low-income housing, such as that developed by the Housing Authority of the City of San Luis Obispo or other housing providers, may be located in any zone that allows housing, and should be dispersed throughout the City rather than concentrated in one neighborhood or zone.In general, 23 dwellings should be the maximum number of extremely low or very-low-income units developed on any one site. 4.4 In its discretionary actions, housing programs and activities, the City shall affirmatively further fair housing and promote equal housing opportunities for persons of all economic segments of the community. Program 4.5 Review new development proposals for compliance with City regulations and revise projects or establish conditions of approval as needed to implement the mixed-income policies. 4.6 Consider amending the City’s Inclusionary Housing Ordinance and Affordable Housing Incentives to require that affordable units in a development be of similar size, number of $WWDFKPHQW PC1 - 15 City of San Luis Obispo Housing Element, July 2014 8 bedrooms, amenities, character and basic quality as the non-restricted units. Goal 5: Housing Variety and Tenure Provide variety in the location, type, size, tenure, and style of dwellings. Policies 5.1 Encourage the integration of appropriately scaled, special needs housing into developments or neighborhoods of conventional housing. 5.2 Encourage mixed-use residential/commercial projects to include live-work and work-live units where housing and offices or other commercial uses are compatible. 5.3 Encourage the development of housing above ground-level retail stores and offices to provide housing opportunities close to activity centers and to use land efficiently. 5.4 In general, housing developments of twenty (20) or more units should provide a variety of dwelling types, sizes or forms of tenure. Program 5.5 Review new developments for compliance with City regulations and revise projects or establish conditions of approval as needed to implement the housing variety and tenure policies. Goal 6: Housing Production Plan for new housing to meet the full range of community housing needs. Policies 6.1 Consistent with the growth management portion of its Land Use Element and the availability of adequate resources, the City will plan to accommodate up to 1,5891,144 dwelling units between January 2007 2014 and December 2014June 2019 in accordance with the assigned Regional Housing Needs Allocation. 6.2 New commercial developments in the Downtown Core (C-D Zone) shall include housing, unless the City makes one of the following findings: A)Housing is likely to jeopardize the health, safety or welfare of residents or employees; or B)The property’s shape, size, topography or other physical factor makes construction of new dwellings infeasible. $WWDFKPHQW PC1 - 16 City of San Luis Obispo Housing Element, July 2014 9 6.3 If City services must be rationed to development projects, residential projects will be given priority over non-residential projects. As required by SB 1087, housing affordable to lower income households will be given first priority. 6.4 City costs of providing services to housing development will be minimized. Other than for existing housing programs encouraging housing affordable to extremely low, very- low and low income persons, the City will not make new housing more affordable by shifting costs to existing residents. 6.5 When sold, purchased or redeveloped for public or private uses, City-owned properties within the urban reserve shall include housing as either a freestanding project or part of a mixed-use development where land is suitable and appropriate for housing. 6.6 Property located behind the former County General Hospital shall be designated a “Special Considerations” zone and may be considered suitable for residential development after further analysis and environmental review, provided that development be limited to site areas with average slopes of less than 20 percent, that approximately one-half of the total site area be dedicated for open space and/or public use, and that an additional water tank be provided if determined necessary to serve new development. 6.7 Support the redevelopment of excess public and private utility properties for housing where appropriately located and consistent with the General Plan. 6.8 Consistent with the City’s goal to stimulate higher density infill where appropriate in the Downtown Core (C-D Zone), the City shall consider changes to the Zoning Regulations that would allow for the development of smaller apartments and efficiency units. Programs 6.98 Maintain the General Plan and Residential Growth Management Regulations (SLOMC 17.88) exemption for new housing in the Downtown Core (C-D zone), and new housing in other zones that is enforceably restricted for extremely-low, very low, low- and moderate income households, pursuant to the Affordable Housing Standards.In expansion areas, the overall number of units built must conform to the City-approved phasing plan. 6.109 Amend the Zoning Regulations and Parking Access and Management PlanContinue to allow flexible parking regulations for housing development, especially in the Downtown Core (C-D Zone), including the possibilities of flexible use of city parking facilities by Downtown residents, where appropriate, and reduced or no parking requirements where appropriate guarantees limit occupancies to persons without motor vehicles or who provide proof of reserved, off-site parking. Such developments may be subject to requirements for parking use fees, use limitations and enforcement provisions. $WWDFKPHQW PC1 - 17 City of San Luis Obispo Housing Element, July 2014 10 6.110 Provide Continue to develop incentives to encourage additional housing in the Downtown Core (C-D Zone), particularly in mixed-use developments. Density based on average unit size in a project should be explored to encourage the development of smaller efficiency units. Incentives may include flexible density, use, height, or parking provisions, fee reductions, and streamlined development review and permit processing. 6.121 Specific plans for the Orcutt Expansion Area and any new expansion area identified shall include R-3 and R-4 zoned land to ensure sufficient land is designated at appropriate densities to accommodate the development of extremely low, very-low and low income dwellings. These plans shall include sites suitable for subsidized rental housing and affordable rental and owner-occupied dwellings, and programs to support the construction of dwellings rather than payment of in-lieu housing fees. Such sites shall be integrated within neighborhoods of market-rate housing and shall be architecturally compatible with the neighborhood. 6.132 Consider General Plan amendments to rezone commercial, manufacturing or public facility zoned areas for higher-density, infill or mixed use housing where land development patterns are suitable and where impact to Low-Density Residential areas is minimal. For example, areas to be considered for possible rezoning include, but are not limited to the following sites (shown in Figure 1 and further described in Appendix D, Table D-2): A. Portions of South Broad Street Corridor and Little Italy area B. 145 Grand Avenue (Pacheco School) C.B.1499 San Luis Drive (rezone vacant and underutilized School District property) C. 1642 Johnson Avenue (vacant School District property) D. 4325 South Higuera Street (former P.G.&E. yard) E. 4355 Vachell Lane (vehicle storage) F.313 South Street (McCarthy Tank and Steel) G.F.173 Buckley Road (Avila Ranch) H.G.2143 Johnson Avenue (adjacent to County Health Department) I.H.3710 Broad Street (Plumbers and Steamfitters Union) J.I.11950 Los Osos Valley Road (Pacific Beach High School) K.J.2500 Block of Boulevard Del Campo (adjacent to Sinsheimer Park) L.K.12165 Los Osos Valley Road (adjacent to Home Depot) 6.143 Continue to support the SLO County Housing Trust fund’s efforts to provide below- market financing and technical assistance to affordable housing developers as a way to increase affordable housing production in the City of San Luis Obispo 6.154 Encourage residential development through infill development and densification within City Limits and in designated expansion areas over new annexation of land. $WWDFKPHQW PC1 - 18 City of San Luis Obispo Housing Element, July 2014 11 Figure 1 - Areas to be Considered for PossibleRezoning $WWDFKPHQW PC1 - 19 City of San Luis Obispo Housing Element, July 2014 12 6.165 Seek opportunities with other public agencies and public utilities to identify, assemble, develop, redevelop and recycle surplus land for housing, and to convert vacant or underutilized public, utility or institutional buildings to housing. 6.176 Develop multi-family housing design standards to promote innovative, attractive, and well-integrated, higher density housing. Continue to incentivize affordable housing development with Developments that meet these standards shall be eligible for a streamlined level of planning and development review. Developments that include a significant commitment to affordable housing may also be eligible to receive density bonuses, parking reductions and other development incentives, including City financial assistance. 6.17 Complete Orcutt Area Specific Plan and consider final City approval to annex the Orcutt specific planning area by December 2010. 6.18 Continue to Ffinancially assist in the development of housing affordable to extremely low, very-low, low- or moderate income households during the planning period using State, Federal and local funding sources, with funding priority given to projects that result in the maximum housing benefits for the lowest household income levels. 6.19 Actively seek new revenue sources, including State, Federal and private/non-profit sources, and financing mechanisms to assist affordable housing development for extremely low, very low and low or moderate income households and first- time homebuyers. 6.20 Update the Community Design Guidelines and amend SLOMC Chapter 2.48 to exempt the construction, relocation,Continue to exempt the rehabilitation or remodeling of up to 4 dwellings of up to 1200 square feet each from Architectural Review Commission review. New multi-unit housing may be allowed with “Minor or Incidental” or staff level architectural review, unless the dwellings are located on a sensitive or historically sensitive site. 6.21 Assist in the production of long-term affordable housing by identifying vacant or underutilized City-owned property suitable for housing, and dedicate public property, where feasible and appropriate, for such purposes. 6.22 Community Development staff will prepare “property profiles” describing proactively provide information for properties suitable for housing. properties suitable for housing to facilitate public or private development and make this information publicly available. 6.23 Evaluate and consider amending the General Plan to designate the 46 acres associated with the former County General Hospital as a “Special Considerations” zone, suitable for housing development on areas of the site of less than 20 percent average slope, provided that open space dedication and public improvements are part of the project. $WWDFKPHQW PC1 - 20 City of San Luis Obispo Housing Element, July 2014 13 6.24 Continue to Uupdate the Affordable Housing Incentives (Chapter 17.90, SLOMC) and Zoning Regulations to ensure density bonus incentives are consistent with State Law. 6.25 Evaluate and consider increasing the residential density allowed in the Neighborhood- Commercial (CN), Office (O) and Downtown Commercial (CD) zoning districts. The City will evaluate allowing up to 24 units per acre in the CN and O zones, and up to 72 units per acre in the CD zone, twice the current density allowed in these areas. 6.26 Evaluate how underlying lot patterns (i.e. size, shape, slope) in the City’s multi-family zones affect the City’s ability to meet housing production policies. If warranted, consider setting a minimum number of dwellings on each legal lot in the R-2, R-3 and R-4 zones, regardless of lot size, when other property development standards, such as parking, height limits and setbacks can be met. 6.27 To help meet the Quantified Objectives, the City will support residential infill development and promote higher residential density where appropriate. 6.28 Consider Continue to pursue incentives changes to theto encourage development of Secondary Dwelling Units (SDUs)). Ordinance, including pPossible incentives such asinclude SDU design templates, flexible development standards, fee reductions or deferrals, or other measures to encourage the construction of SDUs where allowed by zoning. 6.29 Evaluate and consider adopting Subdivision and Zoning Regulations changes to support small lot subdivisions, ownership bungalow court development, eliminating the one acre minimum lot area for PD overlay zoning, and other alternatives to conventional subdivision design. 6.30 Consider scaling development impact fees for residential development based on size, number of bedrooms, and room counts. Goal 7: Neighborhood Quality Maintain, preserve and enhance the quality of neighborhoods, encourage neighborhood stability and owner occupancy, and improve neighborhood appearance, function and sense of community. Policies 7.1 Within established neighborhoods, new residential development shall be of a character, size, density and quality that preserves the neighborhood character and maintains the quality of life for existing and future residents. $WWDFKPHQW PC1 - 21 City of San Luis Obispo Housing Element, July 2014 14 7.2 Higher density housing should maintain high quality standards for unit design, privacy, security, on-site amenities, and public and private open space. Such standards should be flexible enough to allow innovative design solutions in special circumstances, e.g. in developing mixed-use developments or in housing in the Downtown Core. 7.3 Within established neighborhoods, housing should not be located on sites designated in the General Plan for parks or open space. 7.4 Within expansion areas, new residential development should be an integral part of an existing neighborhood or should establish a new neighborhood,with pedestrian and bicycle linkages that provide direct, convenient and safe access to adjacent neighborhoods, schools and shopping areas. 7.5 The creation of walled-off residential enclaves, or of separate, unconnected tracts, is discouraged because physical separations prevent the formation of safe, walkable, and enjoyable neighborhoods. 7.6 Housing shall be sited to enhance safety along neighborhood streets and in other public and semi-public areas. 7.7 The physical design of neighborhoods and dwellings should promote walking and bicycling and preserve open spaces and views. Programs 7.8 Continue to iImplement varied strategies to ensure residents are aware of and able to participate in planning decisions affecting their neighborhoods early in the planning process. 7.9 Identify specific neighborhood needs, problems, trends and opportunities for improvements. Continue to wWork directly with neighborhood groups and individuals to address concerns. 7.10 Help Continue to fund neighborhood improvements, including sidewalks, traffic calming devices, crosswalks, parkways, street trees and street lighting to improve aesthetics, safety and accessibility. 7.11 Continue to develop and implement neighborhood parking strategies, including parking districts, to address the lack of on- and off-street parking in residential areas. 7.12 Continue the City’s Neighborhood Services and proactive enforcement programs to support neighborhood wellness. 7.13 Evaluate strategies that increase owner-occupied housing opportunities. $WWDFKPHQW PC1 - 22 City of San Luis Obispo Housing Element, July 2014 15 Goal 8: Special Housing Needs Encourage the creation and maintenance of housing for those with special housing needs. Policies 8.1 Encourage housing development that meets a variety of special needs, including large families, single parents, disabled persons, the elderly, students, veterans,the homeless, or those seeking congregate care, group housing, single-room occupancy or co-housing accommodations, utilizing universal design. 8.2 Preserve manufactured housing or mobile home parks and support changes in these forms of tenure only if such changes provide residents with greater long-term security or comparable housing in terms of quality, cost, and livability. 8.3 Encourage manufactured homes in Expansion Specific Plan Areas by: A) When the City considers adopting new specific plans, including policies that support owner-occupied manufactured home parks with amenities such as greenbelts, recreation facilities, and shopping services within a master planned community setting. Such parks could be specifically designed to help address the needs of those with mobility and transportation limitations. B) Establishing lot sizes, setback, and parking guidelines that allow for relatively dense placement of manufactured homes within the master planned neighborhood. C) Locating manufactured home parks near public transit facilities or provide public transportation services to the manufactured home parks to minimize the need for residents to own automobiles. 8.4 Encourage Cal Poly University to continue to develop on-campus student housing to meet existing and future needs and to lessen pressure on City housing supply and transportation systems. 8.5 Strengthen the role of on-campus housing by encouraging Cal Poly University to require entering freshmen and sophomore students to live on campus. during their first year. 8.6 Locate fraternities and sororities on the Cal Poly University campus. Until that is possible, they should be located in Medium-High and High Density residential zones near the campus. 8.7 Encourage Cal Poly University to develop and maintain faculty and staff housing, consistent with the General Plan. $WWDFKPHQW PC1 - 23 City of San Luis Obispo Housing Element, July 2014 16 8.8 Disperse special needs living facilities throughout the City where public transit and commercial services are available, rather than concentrating them in one district. 8.9 Support continued efforts to implement the document “The Path Home: San Luis Obispo County’s 10 Year Plan to End Chronic Homelessness”. 8.10 Encourage a variety of housing types that accommodate persons with disabilities and promote aging in place, including a goal of “visitability” in new residential units, with an emphasis on first-floor accessibility to the maximum extent feasible. 8.11 Encourage changes to City regulations that would support the special housing needs of disabled persons, including persons with developmental disabilities. 8.12 Assist the homeless and those at risk of becoming homeless by supporting shelters, temporary housing, transitional housing, and by facilitating general housing assistance. Programs 8.131 As funding allows, cContinue to support local and regional solutions to meeting the needs of the homeless and continue to support, jointly with other agencies, shelters and programs, such as Housing First and Rapid Rehousing, for the homeless and for displaced women and children.. 8.142 Continue the mobile home rent stabilization program to minimize increases in the cost of mobile home park rents. 8.153 Identify sites in specified expansion areasContinue to look for opportunities in specific plan areas suitable for tenant-owned mobile-home parks, cooperative or limited equity housing, manufactured housing, self-help housing, or other types of housing that meet special needs. 8.164 Advocate developing more housing and refurbishing campus housing at Cal Poly University. 8.175 Work with Cal Poly University Administration to secure designation of on-campus fraternity/sorority living groups. 8.186 Jointly develop and implement a student housing plan and continue to support "good neighbor programs" with Cal Poly State University, Cuesta College and City residents. The programs would seekshould continue to improve communication and cooperation between the City and the schools, set on- campus student housing objectives and establish clear, effective standards for student housing in residential neighborhoods. $WWDFKPHQW PC1 - 24 City of San Luis Obispo Housing Element, July 2014 17 8.197 Provide public educational information at the Community Development Department public counter on universal design concepts (i.e. aging in place) in for new and existing residential dwellingsconstruction. 8.18 Solicit input on the zoning ordinance provisions for homeless shelters from service agencies that work with extremely-low income persons and the homeless or persons/families at-risk of homelessness such as the Economic Opportunity Commission (EOC), the Department of Social Services of the County of San Luis Obispo, and the Leadership Council for the 10-Year Plan to End Chronic Homelessness. 8.19 Within one year of Housing Element adoption, update the Zoning Ordinance to allow homeless shelters by right provided they are consistent with the ministerial review standards identified in State law. The City will establish objective standards with input from service agencies to regulate the following, as permitted under SB 2, including: A)The maximum number of beds/persons permitted; B)Parking based on demonstrated need but that does not exceed parking requirements for other comparable uses in the same zone; C)The size/location of exterior and interior onsite waiting and client intake areas; D)The provision of onsite management; E)The proximity of other emergency shelters, provided that emergency shelters are not required to be more than 300 feet apart; F)The length of stay; G)Lighting; and H)Security during hours that the emergency shelter is in operation. 8.20 Transitional Housing and Supportive Housing: Continue to allow the establishment of transitional and supportive housing that functions as residential uses in residential zones consistent with similar residential uses. 8.21 Identify propertiesContinue to look for opportunities (land, retail or commercial space, motels, apartments, housing units, mobile home parks) that can be acquired and converted to affordable permanent housing and permanent supportive housing for homeless persons and families. 8.22 Update the Community Design Guidelines code to include universal access standards such as at-grade threshold entry for ground floor dwellings, accessible exterior path of travel, accessible interior path of travel for ground floor dwellings (wider hallways and doorways), an accessible common room (in addition to kitchen), an accessible half- or full bathroom on the ground floor. 8.23 Consult with service agencies that work with the disabled and prepare and adopt a program addressing reasonable accommodation to land use and zoning decisions and procedures regulating the siting, funding, development and use of housing for persons with disabilities. $WWDFKPHQW PC1 - 25 City of San Luis Obispo Housing Element, July 2014 18 8.224 Consider addition of an overlay zone to existing and future mobile home and trailer park sites to provide constructive notice that additional requirements, such as rent stabilization and a mobile home park conversion ordinance may apply. 8.23 Encourage the creation of housing for persons with developmental disabilities. The City will seek grant opportunities for housing construction and rehabilitation specifically targeted for persons with developmental disabilities. 8.24 Continue to coordinate with the County, social services providers and non-profit organizations for delivery of existing, improved and expanded services, including case management, drug, alcohol, detoxification, and mental health services. 8.25 Continue to engage the Homeless Services Oversight Council (HSOC) and Friends of Prado Day Center (FPDC) to identify, evaluate, and implement strategies to reduce the impacts of homelessness on the City. Goal 9: Sustainable Housing, Site, and Neighborhood Design As part of its overall commitment to improving quality of life for its citizens and to maintaining environmental quality, the City encourages housing that is resource- conserving, healthful, economical to live in, environmentally benign, and recyclable when demolished. Sustainable or “green” housing programs help reduce the life cycle costs of housing, saving homeowners’ or renters’ utilities costs and extending their housing budgets. Moreover, the initial costs of green construction measures or improvements often pay for themselves over time in utility cost savings. Policies 9.1 Residential developments should promote sustainability in their design, placement, and use. Sustainability can be promoted through a variety of housing strategies, including the following: A) Maximize use of renewable, recycled-content, and recycled materials, and minimize use of building materials that require high levels of energy to produce or that cause significant, adverse environmental impacts. B) Incorporate renewable energy features into new homes, including passive solar design, solar hot water, solar power, and natural ventilation and cooling. C) Minimize thermal island effects through reduction of heat-absorbing pavement and increased tree shading. D) Avoid building materials that may contribute to health problems through the release of gasses or glass fibers into indoor air. $WWDFKPHQW PC1 - 26 City of San Luis Obispo Housing Element, July 2014 19 E) Design dwellings for quiet, indoors and out, for both the mental and physical health of residents. F) Design dwellings economical to live in because of reduced utility bills, low cost maintenance and operation, and improved occupant health. G) Use construction materials and methods that maximize the recyclability of a building’s parts. H) Educate public, staff, and builders to the advantages and approaches to sustainable design, and thereby develop consumer demand for sustainable housing. I) City will consider adoptingcontinue to refer to a sustainable development rating system, such as the LEED or Green Globes program when evaluating new development proposals. 9.2 Residential site, subdivision, and neighborhood designs should be coordinated to make residential sustainability work. Some ways to do this include: A) Design subdivisions to maximize solar access for each dwelling and site. B) Design sites so residents have usable outdoor space with access to both sun and shade. C) Streets and access ways should minimize pavement devoted to vehicular use. D) Use neighborhood retention basins to purify street runoff prior to its entering creeks. Retention basins should be designed to be visually attractive as well as functional. Fenced-off retention basins should be avoided. E) Encourage cluster development with dwellings grouped around significantly-sized, shared open space in return for City approval of smaller individual lots. F) Treat public streets as landscaped parkways, using continuous plantings at least six feet wide and where feasible, median planters to enhance, define, and to buffer residential neighborhoods of all densities from the effects of vehicle traffic. 9.3 Preserve the physical neighborhood qualities in the Downtown Planning Area that contribute to sustainability. Some ways to do this include: A) Maintain the overall scale, density and architectural character of older neighborhoods surrounding the Downtown Core. B) Encourage the maintenance and rehabilitation of historically designated housing stock. 9.4 To promote energy conservation and a cleaner environment, encourage the development of dwellings with energy-efficient designs, utilizing passive and active solar features, and the use of energy-saving techniques that exceed minimums prescribed by State law. 9.5 Actively promote water conservation through housing and site design to help moderate the cost of housing. 9.6 Support programs that provide financing for sustainable home upgrade projects such as installation of solar panels, heating and cooling systems, and energy efficient windows. $WWDFKPHQW PC1 - 27 City of San Luis Obispo Housing Element, July 2014 20 Programs 9.76 Continue to Eeducate planning and building staff and citizen review bodies on energy conservation issues, including the City’s energy conservation policies and Climate Action Plan. and Staff shall instruct that they work with applicants to achieve the City’s energy conservation goals.housing goals that conserve energy. 9.87 Evaluate solar siting and access regulations to determine if theyContinue to provide assurance of long-term solar access for new or remodeled housing and for adjacent properties, consistent with historic preservation guidelines, and revise regulations found to be inadequate. 9.98 Adopt Low-impact Development (LID) StandardsContinue to implement the Water Quality Control Board’s “Post-Construction Stormwater Management Requirements for Development Projects in the Central Coast Region”,to, including street and access way standards that reduce the amount of paving devoted to automobiles. 9.109 Adopt an ordinance with requirements and incentives Implement Climate Action Plan programs that to increases the production of “green” housing units and projects and require use of sustainable and/or renewable materials, water and energy technologies (such as, but not limited to solar, wind, or thermal). 9.110 Continue to Ppromote building materials reuse and recycling in site development and residential construction, including flexible standards for use of salvaged, recycled, and “green” building materials. Continue the City’s construction and demolition debris recycling program as described in Chapter 8.05 of the Municipal Code.To help accomplish this, the City will implement a construction and demolition debris recycling program (as described in Chapter 8.05 of the San Luis Obispo Municipal Code). 9.12 Consider incentivizing dwelling units to a minimum size of 150 square feet, consistent with the California Building Code, by reduced impact fees and property development standards. 9.13 Consider a financing program for sustainable home improvements such as solar panels, heating and cooling systems, and windows to improve the energy efficiency of the City’s housing stock. Goal 10: Local Preference Maximize affordable housing opportunities for those who live or work in San Luis Obispo while seeking to balance job growth and housing supply. $WWDFKPHQW PC1 - 28 City of San Luis Obispo Housing Element, July 2014 21 Policies 10.1 Administer City housing programs and benefits, such as First Time Homebuyer Assistance or affordable housing lotteries, to give preference to: 1) persons living or working in the City or within the City’s Urban Reserve, and 2) persons living in San Luis Obispo County. 10.2 Cal Poly State University and Cuesta College should actively work with the City and community organizations to create positive environments around the Cal Poly Campus by: A) Establishing standards for appropriate student densities in neighborhoods near Campus; B) Promoting homeownership for academic faculty and staff in Low-Density Residential neighborhoods in the northern part of the City; and C) Encouraging and participating in the revitalization of degraded neighborhoods. Programs 10.3 Continue to Wwork with the County of San Luis Obispo for any land use decisions that create to mitigate housing impacts on the City due to significant expansion of employment in the unincorporated areas adjacent to the City to mitigate housing impacts on the City.Such mitigation might include, for example, County participation and support for Inclusionary Housing Programs. 10.4 Encourage residential developers to promote their projects within the San Luis Obispo County housing market area (San Luis Obispo County) firstbefore outside markets. 10.5 Advocate the establishment of a link betweenWork with Cal Poly to address the link between enrollment and the expansion of campus housing programs at Cal Poly University to reduce pressure on the City's housing supply. 10.6 Work with other jurisdictions to advocate for State legislation that would: 1) provide funding to help Cal Poly University provide adequate on-campus student housing, and 2) allow greater flexibility for State universities and community colleges to enter into public-private partnerships to construct student housing. Goal 11: Suitability Develop and retain housing on sites that are suitable for that purpose. Policies 11.1 Where property is equally suited for commercial or residential uses, give preference to residential use. Changes in land use designation from residential to non-residential $WWDFKPHQW PC1 - 29 City of San Luis Obispo Housing Element, July 2014 22 should be discouraged. 11.2 Prevent new housing development on sites that should be preserved as dedicated open space or parks, on sites subject to natural hazards such as unmitigatable geological or flood risks, or wild fire dangers, and on sites subject to unacceptable levels of man-made hazards or nuisances, including severe soil contamination, airport noise or hazards, traffic noise or hazards, odors or incompatible neighboring uses. Program 11.3 The City will adopt measures ensuring continue to ensure the ability of legal, conforming non-residentialnon-conforming uses to continue where new development is proposed. housing is proposed on adjacent or nearby sites. $WWDFKPHQW PC1 - 30 DRAFT SAN LUIS OBISPO PLANNING COMMISSION MINUTES June 11, 2014 CALL TO ORDER/PLEDGE OF ALLEGIANCE ROLL CALL: Commissioners Hemalata Dandekar, Michael Draze, John Fowler, Ronald Malak, William Riggs, and Chairperson John Larson Absent: Vice-Chairperson Michael Multari Staff: Assistant City Manager Michael Codron, Deputy Community Development Director Doug Davidson, Natural Resources Manager Robert Hill, City Biologist Freddy Otte, Interim Assistant City Attorney Anne Russell, and Recording Secretary Diane Clement ACCEPTANCE OF THE AGENDA: The agenda was accepted as presented. MINUTES: Minutes of May 28, 2014, were approved as presented. PUBLIC COMMENTS ON NON-AGENDA ITEMS: There were no comments made from the public. PUBLIC HEARINGS: 1. 504 Madonna Road. GPI 76-14: Review of Laguna Lake Natural Reserve Conservation Plan and Mitigated Negative Declaration of Environmental Impact; P- F zone; City of San Luis Obispo, applicant. (Robert Hill) Natural Resources Manager Robert Hill presented the staff report, recommending review of the draft Laguna Lake Natural Reserve Conservation Plan and Initial Study, and recommending to the City Council that the Plan and a Negative Declaration be adopted as presented, or as amended. PUBLIC COMMENTS: Rob Davidson, SLO, commended staff on a comprehensive, detailed report and stated that preservation of Laguna Lake is essential to the park. He noted that many users no longer come to the lake due to its steady deterioration. He supported approval of the plan and emphasized the need to set aside funds for ongoing maintenance. Michael Alamo, SLO, stated that there has been a tremendous increase in open space in the City over the last 30 years but that the development of recreational facilities has not kept up with population growth. He noted that it is important to keep the current synergy between those interested in active recreation and those interested in natural habitats. He stated that one of the key comments made at public workshops is that the City needs to do more to increase the use of resources as attractive amenities and that, even though the plan clearly states that passive recreational activities will be permitted Draft Planning Commission Minutes June 11, 2014 Page 2 as long as they do not cause environmental problems, future interpretation of that statement will determine the actual uses allowed so it is important to identify the permitted passive uses. He supported the dredging. Jonathan Lindenthaler, SLO, stated he is impressed with the plan because it is the most comprehensive, well-thought-out report he has seen in the five years he has been attending hearings for Laguna Lake. Jan Simek, SLO, commended the presentation and had two suggestions: 1) the report could be improved with inclusion of a satellite image showing the future boardwalk and the location of planned dredging; and 2) there should be active web links in the report to online supporting documents. He stated that another study of the sediments in the lake should be undertaken before any dredging takes place because the last study was done in 2001. He noted that there has been unpermitted dumping at the lake in the past and it is his assumption that sewage from Sunny Acres drains to the lake. He stated he is concerned about the accumulation of heavy metals. Michael Hesser, SLO, commended the report and stated that Laguna Lake is the largest asset in the City. He suggested that dredging take place now while the lake is nearly dry because it would save money. Gordon Mullin, SLO, stated that he is running for City Council and is concerned about what is not in the report which is an examination of what happens if we do not do anything. He noted that some say it will just turn into a meadow like Tuolumne Meadows but that he thinks it will become a swamp and that time is running out to deal with this. Jim Buonrostro, SLO, distributed photographs he took this morning illustrating some of the neglect imposed on Laguna Park. He noted that the City could end up spending money on liability due to accidents from such things as the erosion under the fishing dock. He stated that funds for maintenance should be put into an escrow account. He noted that the City maintains Damon Garcia and other parks but has been neglecting Laguna Park where even the grass is not mowed. He observed that there used to be all kinds of recreation going on at the park but that people do not come any more. Leslie McKinley, SLO, supported dredging now and asked how long a special assessment district would be in place. Linda Meyer, SLO, commended the report and stated that she grew up on the lake and her mother still lives there but now her views are blocked by the “mountain” of sediment that has built up. She noted that she worries about flooding and supports dredging. Donald Green, SLO, complimented the report and stated that it is the first set of recommendations to include a holistic approach. He emphasized that it is better to keep sediments from getting to the lake than having to remove them after they are in the lake. He supported ongoing sediment control and removal and stated he is very much in favor of being part of the financing program but is concerned about who will be in charge of choosing dredging locations, etc. He asked if those residents living close to Draft Planning Commission Minutes June 11, 2014 Page 3 the lake, who will be putting more money in, will have more control in choosing how that money is spent and where dredging is done. There were no further comments made from the public. COMMISSION COMMENTS: Commr. Larson stated he is grateful to the public speakers tonight and to all the area residents for showing support for an assessment district. He noted that community support is the most important motivation for staff to set up the district and that this will not be the sole means of financing the plan. He supported dredging and stated that this report is the most comprehensive and integrated he has seen for Laguna Lake and the first time he has seen the suggestion of using dredged spoils onsite for purposes such as landscaping. He requested that staff discuss the financing plans, the time frame, and the assessment district. Natural Resources Manager Hill stated that this report is very preliminary and very conceptual and it needs more thinking and vetting by the community. He noted that the assessment district will be similar to a Mello Roos district, requiring a supermajority of 67% with one vote per parcel. Assistant City Manager Codron stated that the design of the dredge would be an effort to marry the technical requirements and the practical need to get it accepted and would be known before any vote for an assessment district. Natural Resources Manager Hill stated that questions about control of the assessment district are still up in the air and there are many ways to do it including a community board. Commr. Draze thanked Natural Resources Manager Hill and City Biologist Otte for the report, and thanked the public speakers and expressed appreciation for the public’s help to staff. He stated that he likes the plan and hopes the City Council will approve it and that it will get implemented. Commr. Fowler stated he would like to see a chart comparing the costs of implementing this years ago and now. Natural Resources Manager Hill stated he had thought about doing this but does not know how productive it would be to show that it would have been cheaper in the past. He stated that if nothing is done, the prediction is that the delta would continue to form and stabilize, with the lake shrinking in size and eventually becoming a wetland meadow by about 2100. He noted that it may be true that the lake might be an unpleasant place in the interim, as stated by Mr. Mullin, and that the best comparison is to look at 1977 and 2014 and average the change over time with the understanding that the changes would actually be more episodic. Draft Planning Commission Minutes June 11, 2014 Page 4 Commr. Fowler asked whether it would be better to attempt to stop or slow the progress of this sedimentation or begin dredging. He also asked whether a similar report done city wide is being considered. Assistant City Manager Codron stated that staff did look at a larger assessment area, but wanted to limit it to those most affected. He noted that staff is seeking more public comments. Natural Resources Manager Hill stated it has been the goal to have a broader voice from the public. He noted that, in his experience, those living around the lake speak out much more than those living elsewhere in the City. He stated that the City took out a full color advertisement in the Tribune and posted on the City website for the three workshops. Commr. Fowler supported the plan and stated he hopes the City Council will support a financial plan to pay for it. Commr. Dandakar stated that Laguna Lake is a community-wide asset. She asked about showing the allocation of the $10 million budget for the public including what the projected funding sources are and how much from each. She also asked when dredging would be needed again if this plan is implemented and the sediment basins are developed. Natural Resources Manager Hill stated that the dredging project, as envisioned in 2009, would be 20 weeks a year and that maintenance of the sediment basins would be ongoing with some variation due to episodic events. He noted that funding is projected to be 30% from grants, 25% from the assessment district and 45% from the General Fund. He stated that it will not be possible to get grants for dredging or the sediment basins so that funding will be 75% from the assessment district and 25% from the General Fund. He noted that an Army Corps of Engineers grant is not feasible here. Commr. Dandakar asked what the maintenance model would look like. Natural Resources Manager Hill stated that there will be $10 million in improvements and $150,000 for ongoing maintenance. Commr. Malak asked about the onsite island and marshland discussed on page PC1- 28. Natural Resources Manager Hill stated that this is from the 2009 dredging only report when using spoils to form an island, but this was not the preferred alternative as it would be even more expensive hauling them to landfill. He noted that current estimates are comparable to the 2009 figures. Commr. Malak asked for a definition of passive recreation, as mentioned in 15. Recreation on page PC1-21. Draft Planning Commission Minutes June 11, 2014 Page 5 Natural Resources Manager Hill noted that discussion of passive vs. active recreation is legendary and that the plan does not propose use changes but does include some controls and monitoring to determine impacts. Commr. Malak asked if some commercial use would be allowed. Natural Resources Manager Hill stated an exception would be needed for that. Commr. Malak stated that he agrees that the park is not being maintained and he agrees with Commr. Fowler about presenting this to the Council as a citywide issue. He asked what would happen if Measure Y is not approved. Natural Resources Manager Hill stated that the preliminary plan does rely on approval of Measure Y and that Community Facilities Districts are not easy to accomplish. He noted that without those funding sources, the City would have to look at this as a pay- as-you-go project using General Fund monies and grants or something time-deferred and maybe smaller. Commr. Riggs stated that implementation will increase the user base from around the City, and he is concerned about cumulative impacts of traffic. He noted that the last thing the neighbors would like would probably be seeing an increase in people driving there, which is something to be sensitive to in the implementation. Commr. Larson stated that this is the best plan seen for Laguna Lake and noted that the willingness of the residents with property adjacent to the lake to support staff and the plan is a powerful tool in gaining support from a broader area. On motion by Commr. Draze, seconded by Commr. Fowler, to recommend to the City Council that the Plan and a Negative Declaration be adopted as presented. Commr. Malak suggested a friendly amendment for commercialization of the open space. Commr. Draze stated he would like that as a separate amendment. Commr. Malak agreed. There were no further comments made from the Commission. AYES: Commrs. Dandekar, Draze, Fowler, Malak, Riggs, and Larson NOES: None RECUSED: None ABSENT: Commr. Multari The motion passed on a 6:0 vote. On motion by Commr. Malak, seconded by Commr. Larson, for consideration of commercialization of lake activities at Laguna Lake commercialization of lake activities in the Laguna Lake Park. Draft Planning Commission Minutes June 11, 2014 Page 6 Commr. Dandakar stated that if she is supporting this, she would like to see it tied to fiscal liability in the long term and would like an analysis of licensing. She stated that otherwise she is not supportive of something that might diminish the quality of this natural, beautiful environment. Commr. Larson noted that this is worthy of a continuing discussion if it can be done without adverse environmental effects and can raise additional monies for the park and that there is a precedent for more active uses of the park with the periodic events held there. Commr. Draze stated he can support commercialization in the park only. Commr. Malak suggested uses such as a paddle boats concession. Commr. Riggs recommended that the motion be changed to request staff explore this and report back to the Planning Commission because it could have ramifications here and across the city. Commr. Fowler stated he cannot support this as there are more questions than answers and the staff has its hands full with just the conservation plan. There were no further comments made from the Commission. AYES: Commrs. Dandekar, Larson, and Malak NOES: Commrs. Draze, Fowler, and Riggs RECUSED: None ABSENT: Commr. Multari The motion resulted in a 3:3 tie vote. Commr. Larson, as chair, stated that he chooses to leave it as a no vote. Commr. Malak stated he would now prefer staff explore this and come back with a presentation about possibilities and ramifications. Assistant City Manager Codron recommended speaking with the Park and Recreation Director about this and any precedents, after which a memo to the Planning Commission would be developed, and then staff could take direction from the Commission. Commr. Malak stated he would rather have a presentation. Commr. Fowler agreed with Assistant City Manager Codron. Commr. Larson stated that no action will be taken and the subject will be discussed again when all Commissioners are present. Draft Planning Commission Minutes June 11, 2014 Page 7 Commr. Larson stated that the plan will be heard by the City Council in two weeks where everyone has the right to state their viewpoint. Commr. Dandakar stated that if there is to be a memo, she would like it to be about the fiscal plan and viability of maintaining this resource with a long-term preservation strategy and less about just commercialization. COMMENT AND DISCUSSION: 2. Staff a. Agenda Forecast by Deputy Community Development Director Davidson: 1) June 25, 2014, meeting cancelled 2) July 1, Tuesday, 2014, 5 p.m. joint meeting with City Council about LUCE 3) July 9, 2014, Chevron Tank Farm area, Public Facilities Financing Plan 4) July 23, 2014, about LUCE and Housing Element review. 3. Commission a. Commr. Dandakar will be absent for all meetings in July. b. Commr. Draze will recuse himself from July 9, 2014, meeting. c. Commr. Malak will be absent for July 1, 2014, joint meeting with City Council. ADJOURNMENT: The meeting was adjourned at 8:19 p.m. Respectfully submitted by, Diane Clement Recording Secretary