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HomeMy WebLinkAbout11/04/1991, 1 - CITY COUNCIL STUDY SESSION AGENDA FOR NOVEMBER 4, 1991 ��,RI►►►4IIIIIIIIIIA IIIIII f MEETING DATE: u I��u�► cityo san suis oBispo ��-y- COUNCIL AGENDA REPORT ITEM NUMBER: FROM: Arnold Jonas, Community Development Director ( • Bill Hetland, Utilities Director / PREPARED BY: Terry Sanville, Principal Planner SUBJECT: City Council Study Session Agenda for November 4, 1991 1. Reclaimed Water Line Proposal The owners of La Lomita Ranch (south of Islay Hill) have proposed that the City support the construction of a water line that would deliver treated sewage effluent to land outside the City. In the attached letter (Exhibit 1), the owners representatives (RRM Design Group) indicate that the effluent would be used to support two golf courses. The routing of the line could also allow delivery of effluent for irrigation to existing City parks in the Edna Islay Area and possibly (depending on routing) to parks and open space in the Margarita Expansion Area. The attached memorandum prepared by Utilities and Community Development Department staff (Exhibit 2) identifies key policy and implementation issues. The County Planning staff have also indicated they would be submitting written comments. Recommended Action: Invite the owner's representative to make a brief present tion, discuss key issues as appropriate and provide direction to staff for desired further action. 2. Cal Cities Water Service to the Airport Area Cal Cities Water Company provides service to properties south of the City in the Rolling Hills - Country Club Estates area. In August, 1991 the Airport Area property owners met with Cal Cities representatives to discuss providing water service to their properties. The property owners supported Cal Cities submittal of an application to the Public Utilities Commission (PUC) requesting expansion of Cal Cities service area. The attached memoranda prepared by Administration, Community Development and Utilities staff (Exhibit 3) discusses key land use and service policy issues. Recommended Action: Ask City staff to make a brief presentation, discuss pertinent issues, and provide direction as appropriate. 3. Appropriate Land Uses for the Dalidio Property A letter from Andrew Merriam (Exhibit 4) asks the City Council to provide guidance concerning the planning of the Dalidio property as part of the City's LUE update process. Two options -- Option #1: Urban Emphasis, and Option #2: Agricultural Emphasis -- are identified. The attached report prepared by the planning staff(Exhibit 5) briefly evaluates both land use planning options for the Dalidio property and adjoining agricultural properties. Recommended Action: Invite Mr. Merriam to make a brief presentation, discuss the proposals as appropriate, and provide direction to staff for desired further action. ��������►►II�IIIIIIIIIII� ����ll city of san Luis oBispo COUNCIL AGENDA REPORT 4. Review of City Council Member Maps At a previous Council meeting, Councilmember Rappa suggested that Council members map their ideas for the location of the ultimate city limits, urban reserve line, the extent of city services, the location of a green belt, and the extent of the downtown commercial area. Staff has received maps from four Council members. Recommended Action: Invite Council members to discuss their ideas, discuss pertinent issues, and provide direction to staff as appropriate. 5. Identification of Circulation Element Issues The Planning Commission recommended draft Circulation Element was distributed to the Council in September. Council has indicated that after it completes its review of the draft LUE, it would hold day-long sessions to review the draft Circulation Element. The City Council briefly discussed circulation issues during one of its Land Use Element study session. Comments and concerns raised at that meeting are summarized Exhibit 6, attached. The Council has not identified key issues that they wish staff to prepare discussion papers on (similar to the Land Use Element review process). The Council should either identify key issues for staff analysis or decide as an alternative strategy to focus on key parts of the draft element itself(eg. alternative t—ncnortatio^ programs, street projects, neighborhood traffic management). Recommended Action: Review attached Exhibit 6 and identify key circulation issues that should be reported on, or provide other direction as appropriate. I Attachments Exhibit 1: Memo from Utilities on effluent line proposal Exhibit 2: Memos from Administration/CDD on Cal Cities water service proposal Exhibit 3: Letter from Andrew Merriam concerning Dalidio property planning Exhibit 4: Report from Glen Matteson on Dalidio property planning Exhibit 5: Memo from Terry Sanville on circulation issues /-,Z II�INIIII�IIIIIIIIIp�'I IUIh � MEETING DATE: Ciof san tuts oBIspo November 4, 1991 COUNCIL AGENDA REPORT ITEM N UM/BER: FROM: William T. Hetland �" Prepared By: Robert A. Livick, Utilities DirectorWater Reclamation Coordinator SUBJECT: Study Session for the proposed use of reclaimed water for the La Lomita Ranch development, east of the County airport. CAO RECOMMENDATION: � Receive report and hear proposal by RRM Design Group regarding the development of La Lomita Ranch. Consider major issues identified ini conjunction with the proposal and provide direction to Staff. DISCUSSION: BACKGROUND On October 71 1991 a letter proposal requesting a study session to consider serving reclaimed water to the La Lomita Ranch development was submitted to the Mayor and Council. Staff has had previous discussions with RRM regarding the possible use of reclaimed water for this development. On October 16, 1991 City Utilities and Planning Staff met with County Environmental and Planning Staff to discuss key issues involved with this proposed development. Council should consider the following issues in hearing the proposal from RRM Design Group. A. ADOPTED PRIORIES FOR RECLAIMED WATER USE. On August 20, 1991 the City Council adopted Resolution 7024 (1991 Series) regarding the priority for reclaimed water use. The primary category for reclaimed water use is the offset of existing non-potable demand of potable water, preservation of the groundwater supply and maintaining a baseline flow to San Luis Obispo Creek. The proposed use of reclaimed water on La Lomita Ranch falls within the lowest priority of the potential reclaimed water uses and under current policy could only be served if the reclaimed water demand of the higher priority users is met. B. CONSTRUCTION OF REQUIRED INFRASTRUCTURE. The developers for La Lomita Ranch have proposed to construct, at their expense, an estimated four million dollar reclaimed water transmission system to the La Lomita Ranch property. This pipeline could also be used by high priority users within the City to offset their non-potable demand of potable water. This would be with the understanding that the developer would be reimbursed through hookup fees. C. IDENTIFICATION OF CREEKFLOW REQUIREMENTS. City Staff is currently working with the California Department j of Fish and Game (DFG) in order to determine the appropriate minimum discharge of treated wastewater to San Luis Obispo i-3 city Of San Luis OBISPO COUNCIL AGENDA REPORT Study Session for La Lomita Project Meeting of November 4, 1991 Page 2 I Creek. When this amount is determined, Staff will be able to quantify the reclaimed water supply potential. This issue is to be resolved in a future study, tentatively to be completed by Spring 1991. D. PROGRAM ENVIRONMENTAL REVIEW STATUS. A California Environmental Review Act (CEQA) review of the City's reclamation program, regardless of the La Lomita project, must be performed. How the La Lomita project impacts the Citywide reclamation program will greatly affect the scope of the environmental document. Also, since various developments have been proposed for La Lomita Ranch, the full scope of the development to be served should be known. E. FISCAL IMPACTS OF PROPOSED PROJECT. Besides the construction of the required facilities for the transmission of reclaimed water to the proposed La Lomita development site, the City will benefit through the sale of reclaimed water to the proposed development. This would be two years of income prior to the completion of the treatment plant's tertiary facilities. This income could form the basis for an enterprise fund that may finance a portion of the remaining reclamation program. F. INCONSISTENT WITH CITY ORDINANCE City of San Luis Obispo Ordinance 13 . 16. 010 prohibits any provision or entitlement to water or sewer service for the use or benefit of properties outside the City limits. This conflict with City ordinance would have to be resolved prior to serving La Lomita Ranch. G. CONSISTENCY WITH THE GENERAL PLAN The City and County general plan show the La Lomita Ranch as open space or agriculture. H. LEAD AGENCY STATUS FOR PROJECT ENVIRONMENTAL REVIEW. The City would be the logical choice for lead agency if this project is approved by the Council. CONCURRENCES: This report has been reviewed by the Community Development Department and they concur with the content and recommendations of this report. FISCAL IMPACT: If Council chooses to direct Staff to work with RRM in developing this use of reclaimed water, the only direct fiscal impact will IgIIIII��' ��11 MY of San Luis OBISpo COUNCIL AGENDA REPORT Study Session for La Lomita Project Meeting of November 4, 1991 Page 3 involve additional Staff time required to coordinate with the developer. ATTACHKENTS: I 1. Wastewater Reuse Proposal for La Lomita Ranch from RRM Design Group. 2. Letter from County Planning addressing their concerns. I I I ATTACHMENT I R RM DESIGN GROUP ,?i.Y;�ct•:i,rir.'r:� E October 7, 1991 Mayor Ron Dunin City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 SUBJECT: WASTEWATER REUSE PROPOSAL FOR LA LOMITA RANCH Dear Mr. Mayor and Members of the Council: After a number of meetings with various members of the City staff and administration, we have prepared an important proposal that we would like to present to the City at its next study session. This proposal will involve a major private investment to construct a facility of great public benefit -- a wastewater trunk line that would convey first secondarily treated wastewater, and subsequently tertiary treated effluent to La Lomita Ranch for the purposes of irrigating two golf courses on La Lomita Ranch while serving a number of existing and future planned parks in the Margarita expansion and Edna Islay areas. We have attached a map depicting the general alignment of this pipeline that La Lomita Ranch hopes to construct before the end of 1992. We are currently in the process of acquiring the remaining increments of right-of-way that will be necessary to construct the pipeline in this alignment -- conditioned, of course, upon City acceptance of this proposal. This proposal, coming at a time when the City can ill afford to make an investment like this on its own, is central to creating a realistic and functional wastewater reuse program in San Luis Obispo. We have been in close contact with Bill Hetland and Rob Livick of your staff to work out the details and we are now at a point where we need a conceptual go-ahead from the City Council to finalize our plans and conclude our negotiations with the City. At the study session that we ask you hold to consider this item, we will have a number of exhibits and issues to discuss with you regarding this proposal, including, but not limited to: ♦ Appropriateness of this wastewater reuse project. ♦ The private financing of this nearly $4 million improvement with the understanding that we would recapture a portion of the investment that will not be used by La Lomita Ranch from others that would hook into the wastewater line as they develop. RECEIVED •:�_r.South.hi:ccora Sirre.fan Lve Ocvco.Cal:iorma u; 8 1991 /_� - .7:n ScScc cc.-c Q, OCT•• qo:CZ 'nv CITY COUNCIL InM 1 I00 re...r� w. Mayor Ron Dunin Page 2 October 7, 1991 ♦ The timing of the wastewater line installation. ♦ The purposes for which La Lomita wishes to use this effluent. ♦ The various public benefits and spinoffs associated with this project. Please let us know if you need any further information from us prior to this study session which we hope will lead to a firm Council direction to its staff to work with us on the details and conclude negotiations so that this project might be constructed in 1992. Otherwise, we look forward to the Council's timely scheduling of this important item. Sincerely, RRAZ DESIGN GROUP 'A A000 T. Keith Gurnee Senior Vice President Planning Division cc: Doug Murdock Jerry Michael Bill Hetland Rob Livick John Dunn c/kg-nomad.ss cc Lu Fiy ; ulLU y O m od c i 0. 0 CL ui a OOLu \ / , "PR-- 0 ."' ,p. ,�.\ '.lam •• �-1... .' cc Ckc C4 La e moi.,.. .,�_, i••;:;,"� : _� ' � \ �..,�' ����� � r'. .•\ .\ �..�.�.t .� ip sie .8 '�4 . � '4'�� `,tm •� � � /,f �� 070 ' •: r�� � '1•' VJ ,. 19. t u ��v X1 M)rr kk �.�� a i I���*r' n' •,� i�r_• .yp•�� R� �. � •.,Y"rl GA' .I `I �• �. . ,•. �,,, ;.• . \`c — ee � JC • i / Y����`�J>l - I �.Q-... m � ° �`, �� 111 1 •, t 1.1r.. �I� L o , Tim: i• s $• fir' O _ O Pb ` 1//11( ��..•'+ 4 ,��e.•'L �••.., .•� �. -:�1 ��4•.' .. �,/nor . � . .1 r.. ��•.\ .. I.i'•' I�g ATTACHMENT October 23, 1991 William Heti nu d� Utilities Director MINQ& MM 955 Morro SLJ trut rim San Luis Obispo, CA 93401 HAND DELIVERED Dear Mr. Hedund: SUBJECT: PROPOSED CONSTRUCTION OF RECLAIMED WATER TRANSMISSION SYSTEM FROM CITY SEWAGE TREATMENT PLANT TO LA LOMITA RANCH Thank you for meeting with us recently and providing the opportunity for us to comment on this proposal by RRM Design Group. The following comments from our planning and environmental coordinator staffs are based on information about the proposal made available to us by your staff and RRM Design Group. The issues noted here also reflect the meeting we had with your staff on October 17, 1991. RRM Design Group proposes the construction of a reclaimed water transmission line through areas in the city and the county. The stated purpose of this facility is to irrigate parks and other landscaped areas within the city, and also to irrigate a "sod farm" on the western portion of the La Lomita Ranch, which is in the county. We also understand that RRM has proposed to develop golf courses and other related facilities on the La Lomita Ranch, a project identified as "Las Nomadas." The Las Nomadas proposal for the La Lomita Ranch has not yet been formally submitted to the county, but RRM's staff have met with county staff to introduce the concept and solicit comments. The Las Nomadas proposal would, in effect, replace the previous proposal submitted by RRM for a major business park and residential development on the site. We identified the following issues when we met with your staff on October 17: 1. Since the proposed reclaimed water transmission line would be constructed by private parties through areas which are now under county jurisdiction, it will be necessary to determine whether the city or the county should be the "lead agency" for purposes of environmental review, and whether county land use, grading and construction permits are required. It may be possible for a determination that the project is a public facility which is exempt from county permits, but it is not exempt from environmental review under CEQA. If the city wishes to be the lead agency for environmental review, then county staff would recommend a team approach to enable direct participation by county staff. The procedure established to enable such a team approach would also need to be approved by the Board of Supervisors. l/ �- 9 ,L• Bill Hetl"d Page 2 La Lomita Water Line "TMM October 23, 1991 2. As proposed, the line would extend beyond the city limits to terminate on the La Lomita Ranch, where it would support development of a sod farm, golf courses and related facilities, or a business park and residential development. These facts raise the issue of what the "project" is for purposes of environmental review. Information provided to us by RRM appear to indicate that the water line is intended to serve the golf courses project, not just a sod farm. Therefore, the impacts of the golf courses project should be evaluated as part of the environmental review for the water line. However, if the reclaimed water line terminated within the city, and did not extend to the La Lomita Ranch, then environmental review for the water line might not need to evaluate the full range of project level impacts from the development of the La Lomita Ranch. Growth- inducing impacts at some level would still need to be addressed. 3. Your staff indicated to us that the amount of reclaimed water which will be available is not yet known. The available supply and the potential demand for this water for all other sites within the city limits (or proposed to be within the city limits)should be determined before this proposal is approved. For example, another future golf course along the south side of Tank Farm Road is proposed to use reclaimed water, and on a site which is already within the city's urban reserve line. 4. The La Lomita Ranch property is designated "Agriculture" in the existing Land Use Element of the County General Plan, which would permit establishment of a sod farm, but not golf courses. Whether the site should be redesignated to permit the golf course project has not yet been determined. Alternatively, the city could choose to amend its Land Use Element to enable annexation and subsequent development within the city. Extension of the proposed water line to the site could result in expectations that the ultimate development of the golf courses will be approved. These comments are intended to aid the city in conducting its review of the proposal by RRM, and are not intended to convey county support or opposition to the water line or development of the La Lomita Ranch. We encourage you to continue working toward the application of reclaimed water to irrigate landscaped areas in order to minimize the amount of potable water used for such purposes. Again, thank you for coordinating with us on this proposal. Sincerely, BRYCE TINGLE Assistant Director, Planning and Building Department cc: Ellen Carroll, Environmental Coordinator County Board of Supervisors I� city of sAn tuis oaspo 990 Palm Street/Post Office Box 8100 • San Luis Obispo, CA 93403.8100 October 9, 1991 MEMORANDUM To: City Council From: JohnD Subject: (1) A tion of Cal Cities Water Company to Public Utilities Commission for addition of Airport Area to their service area, (2) Probable forthcoming application of Cal Cities/Airport Area to County for State Water allocation released by other areas These prospective actions raise many issues and implications to the City. The attached "thought paper" attempts to identify and to discuss some of these. It attempts to do so in an objective way. The question before the City could be put this way: What is best for the City (including our citizens and those who are not in the City but who depend on the City) for the long-term: (1) for the City to attempt to influence the County and other "actors" to take actions in the Airport Area that are consistent with City desires, or (2) for the City to become the major actor and to control what happens in this area through our policy and planning processes? It is relatively easy to say as an immediate response to the developing situation, "we will just oppose their application before the PUC. " First, we might not be successful in doing that. Secondly, and more importantly, that begs the real question: What does the City really want to have happen in this area? We should state not only what we oppose, but what we stand for. This is the question that the Board of Supervisors is requesting that we answer or, failing to get an answer from us, they will proceed in their own way towards what they want for the area (with financial consequences being very important to. them) .. The attached paper poses the issues rather than provides an answer. It is designed for preliminary thought, as a base for later action (but not much later) action by the Council. In summary the most immediate question is: What should the City's position be before the PUC? The second and longer-term question is: Beyond opposing the expansion of the Cal Cities service area to include the Airport Area, what is the City's long-term direction and desire for the future of the Airport Area. Until we are explicit on the second question, our answer to the first question will only tantalize or frustrate others. It will not resolve the dilemma the City faces regarding the future of this area. Arnold, Jeff and I are available at your convenience to further discuss this impending situation and the City's response to it. JD:mc c. Management Team Attachment d/add[ies �►►��►��pI�IIiiIII�II�Illll ui�°°II � Cl of Sal'1 tuis oaspo 990 Palm Street/Post Office Box 8100 • San Luis Obispo, CA 93403.8100 October 9, 1991 TO: John Dunn, City Administrative Officer VIA: Arnold Jonas, Community Development Director PREPARED BY: Terry Sanville, Principal PlannertS, SUBJECT. Water Service to the Airport Area The Situation On August 29, 1991, the Airport Property Owners Association held a meeting at the City- County Library. One of the agenda items dealt with a proposal that Cal Cities Water Company provide service to existing and future development in the airport area. From the presentation made by representatives of Cal Cities Water Company and the ensuing discussion, I understood the following: Cal Cities Water Company may provide water service from two water sources — wells and surface water. Surface water includes water from the coastal branch of the State aqueduct. Cal Cities does not currently have surplus well water to sell but has a reservation for 550 acre feet of State water. It would be the intent of Cal Cities to request the use of State water reservations that are abandoned by other water agencies in the County -- eg. the Cities of San Luis Obispo or Arroyo Grande. Cal Cities Water Company would use State water to serve airport area development The first step.in enabling.Cal.Cities.to.serve.the.airport area is to request that the PUC approve an expansion of its service area. It is not clear what territory would be included in an expanded service area for Cal Cities Water Company. It is clear from the discussion, that the proposal by the Airport Area Property Owners Association to ask Cal Cities to serve the area was intended to secure water service to enable future growth and to influence the City's water service and resource decisions -- eg. whether to retain its 3,000 AF reservation of State water. Page 2 -- Water Service to the Airport Area Cal Cities would be willing to work on the creation of a County Service Area (CSA) and the design and construction of a "community" water service system for the airport area. Cal Cities Water Company (actually Southern California Water Company) provides service to over a million California customers. Some of these customers are within city limits -- eg, parts of Santa Maria and Simi Valley. Cal Cities maintains that other cities have no problems with their providing service. By a show of hands, the airport property owners attending the meeting supported Cal Cities filing of a request with the PUC to expand its service area. Cal Cities representative said that they could submit a PUC application by mid-September. (To date, the PUC has not notified the City that an application has been received.) Policy Issues The question of services, appropriate land use, quantity and quality of development and growth management are linked. Given this complicated linkage, there are a number of related policy questions. Assuming that both the City and County Land Use Elements are amended to show the same or similar patterns of development for the airport area, then key policy questions include the following: 1. Should the actions of the Airport Area Property Owners and Cal Cities Water Company affect the City's position concerning State water? Naciemento water? Discussion If the City intends to serve airport area development consistent with the Airport Area Concept Plan, then it should ensure that it has or will be able to secure sufficient water. In November, 1990 the City Council established the City's water supply requirements at 14,400 Acre Feet to meet current general plan needs. Water supply projects were recently identified in the 1991-1992 Water Operational Plan reviewed by the City Council on September 3, 1991. Both the State Water Froject and the Naciemento Project were described within the Water Operational Plan If the City opts for the Nacieniento Froject..and abandons its State Water reservation, then Cal Cities could request the use of all or part of the City's state water reservation If the City maintains its current 3,000 AF reservation, Cal Cities "light still request a State water allocation from those not used by other agencies -- eg. Arroyo Grande. 2. Does it matter who provides sen1ce to the airport area if both City and County General Plans show the same type of land use in the area? 2, /-/� Page 3 -- Water Service to the Airport Area Discussion If water is provided by Cal Cities Water Company using State water, urban levels of develop development would most probably occur under county jurisdiction (assuming that adequate sewage treatment can also be provided). The quality of service might depend on the design of the airport area's distribution and treatment system. In the past, the City Council has voiced concern about the quality of development that. the County has approved The County is contracting with RRM Design Group to prepare design guidelines that would apply in the area and focus on standards for projects that border major street corridors. Sooner or later the City must face the question: do we want substandard urban type development under the control of the county (or another jurisdiction) on the periphery of our City? The City would face the impacts of such development (traffir, air pollution, sprawl growth, demands on City services) without enjoying the advantages (control of growth, city planning review, development that meets City standards, and tax revenues). 3. Are there controls on who can provide urban services to the airport area? How does the PUC process work? Discussion When Cal Cities Water Company applies to the PUC to expand their service area, they must include a service area map and request a 'tariff change." The PUC will notify all adjacent utility providers (including the City) and place a notice in the local newspaper.' The Public Utilities Commission is the body empowered to approve or deny service area expansion.. Cal Cities application cannot be approved in less than 40 days from the date of filing If there is subsiantial protest, the PUC can suspend the filing and require a public hearing An administrative law judge conducts the hearing. Following testimony, the judge will render a decision ,which can be appealed through the court system. (Note. Mr. Dan Page frons the PUC has already indicated that he will make sure the Ciry is notified when an application is received) The PUC will also contact the Local Agency Formation Commission (LAFCo) and ask whether.Cal.Cities is zh.e.Most reasonable-agency to provide service LAFCo will in tum contact the Ciry for input and comment. The airport area is within LAFCo's sphere of influence for the Ciry of San Luis Obispo. It has been LAFCo's policy not to support multiple service providers within sphere of influence areas. Cal Cities must also receive authority from the appropriate fire jurisdiction, in this case the California Department of Forestry. Page 4 -- Water Service to the Airport Area 4. Can the City control the quality and timing of growth in the airport area by promising services (se%ver and water)? If the City can provide services, will this be a sufficient incentive for property owners to pursue annexation? Will the provision of City services be sufficient to area property owners to compensate for limits Imposed by City growth management policies and design review requirements? Discussion If a property owner wants to develop, the attractiveness of annexation will depend on how much development the City will allow, the type of development allowe4 the timing of development, and the delivery of services (water and sewer). If there are competing service providers and the level of service is similar in quality and cost, then we can assume that the property owner will pick the strategy that will enable the ultimate level of development with the least constraints -- constraints such as design controls and non-residential growth management. However, we have been informed by area property owners that'their current desire is to be within the Citi. S. dill Cal Cities service result in the installation of"substandard" infrastructure that the City may have to take over some day if it fails? Discussion Cal Cities service to the Airport Area may result in the construction of infrastructure which does not meet City standards If the area develops under County jurisdiction, roadways, sidewalks, water lines, sewer lines, etc. would be constructed to County standards which may cause problems in the future if the City allows annexation of the Airport area and assumes responsibility for the infrastructure. 4ccepting responsibility for maintenance of infrastructure which is not constructed, tested and inspected by the City can.and has lead to problems such as inadequate pipeline sizes, excessive leakage, pipelines outside of public right-of-ways; inadequate pavement and street design. Tlie City could work with the County to establisli mutually-acceptable infrastructure standards for the Airport Area and develop a master plan for infrastructure. 77nis effort might be supported by the property owners if the cost of improvements would not be significantly more than the cost of improvements now required to meet County standards 6. Has the City stated its intent to provide services to the airport area and can it ensure a time table for these services? Discussion The City's Water and Waste Water Alanagement Element (1989) includes the airport area within its service boundary. However, the current City Land Use Element designates the area as 'Rural Industrial." By definition, Rural Industrial uses are 11,PIC ._pie Page 5 -- Water Service to the Airport Area supported by on-site services. If the City Council adopts a new Land Use Element that reflects urban uses in the airport area.inside the urban reserve, then it would be assumed that the City could provide services at the appropriate time. At its August 26, 1991 day-long study session, the City Council agreed that the Airort Area Conce tD Plan should be incorporated into the draft Land Use Element. T/te City and County planning staff are preparing a policy statement that could be incorporated into both agency's Land Use Elements. This jointly-prepared statement will provide an opportunity for the City to clarify its intent concerning services to the airport area, including the issue of 'Miming." Alternatives if: Cal Cities Water Company expands its service area, secures State Water, and serves the airport area at a competitive cost; and The County allows urban development in the airport area served by non-municipal systems; and Other requisite services (sewage treatment) can be provided via the creation of a County Service District (CSA). then the City's ability to control development in the area will be severely impaired. There are many possible interpretations of what might happen, could happen, or.should happen if Cal Cities Water Company's service area is expanded. If Cal Cities submits an PUC application, the City Council may want to: 1. Oppose Cal Cities application and petition the PUC for a Public Hearing. 2. Oppose Cal Cities application, petition for a Public Hearing, and agree to serve the airport.area in a time frame similar to the availability of State water resources. 3. Work with the County to ensure that any further urban level of development in the airport area is contingent upon services provided by the City's water and sewer systems. (If the city fails to provide services within a specified time frame, a CSA could be created to allow for non-municipal services.) 4. Decide that having more than one water supplier in the airport area is not a problem (though the experience of other areas indicates that there usually is a problem). S. Do nothing at this time (with the realization that the action of others will determine the future situation). T'S:ts Letter.wp MPA MERRIAM PLANNING 10 October 1991 ASSOCIATES Mayor and Members of the City Council San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 RE: Determination of appropriate land uses for the Dalidio Annexation Area Dear Mr.Mayor and Council Members: The Dalidios have asked me as their agent to formally submit for your guidance the conceptual land use options that have been considered for their land adjacent to Central Coast Plaza in the County of San Luis Obispo. These options are described in much more detail in the attached exhibits but may be summarized as follows: Option#1: Urban emphasis. (Total annexation area)This approach assumes the land to be a valuable urban resource to the City in terms of providing for additional commercial uses(additions to both the existing regional shopping area and to the auto sales uses next to Auto Park Way), neighborhood housing as well as low to moderate income apartments and condominiums. The plan has an extensive neighborhood park and greenway system, highway buffer and dedication of 4 acres of eucalyptus trees as part of a Laguna Park extension. Option#2: Agricultural emphasis. (Shown for Dalidio ownership only)This option stresses the preservation of agriculture and open space in the central portion of the area. Only two urban uses are reserved: Forty acres of commercial land is adjacent to Central Coast Plaza and 13 acres of land is reserved adjacent to Madonna Road for medium high density residential. Both options are designed around an extension of Prado Road from a new interchange with U.S. 101 to Madonna Road. Under option two the City would purchase the agricultural land. The Dalidio's are asking for $87,000 per acre based upon an appraisal of residential land valued in its unannexed form. (Annexed and ready to sell to a developer, the land would be valued at a little over three times this amount). The Dalidio's desire that the City Council,in light of the General Plan Update now in progress, give them general guidance on the option that they prefer for the Specific Plan Area so that we may begin a concentrated effort to get the Specific Plan into the environmental review process in the near future. We would hope that this guidance could be given in early November 1991. Sincerely REc;eN ED for the applicant, OCT 10 1991 CITY COUNCIL SAN LUIS OBI.SQO, CA Andrew G. Merriam,AIA,AICP Principal 7350 Marsh Street San Luis Obispo. California 93407 (805) 543-7057 Andrew G. Merriam. AIA. AICP Background Information: Dalidio planning options for annexation to the City of San Luis Obispo. Option #1: Urban Emphasis This option optimizes the urban potentials of the site. It calls for an immediate and complementary addition to the existing regional shopping center complex of 23 acres and an additional reservation of 17 acres for future expansion in keeping with the population and economic growth of the community. Private studies indicate that there is potential for the total complex to come on line in a phased 8 year period with minimal impact on the existing stores downtown. The community already has the economic purchasing power to support the full forty acres of shopping with some relocation of the shopping patterns(not 100%) from Santa Maria and Santa Barbara. Any developer would be expected to work with the City in generating a phasing program that will provide maximum complementary support for the downtown and existing shopping in the San Luis Obispo City area. The development of the Shopping Center Complex will be supported by an new U.S. 101 interchange at Prado Road which will both direct new traffic directly into the shopping centers parking lot and relieve congestion on the Madonna Road and the Los Osos Valley Road interchanges for shopping traffic. The extension of Prado Road,already called for in the City's Circulation Masterplan will also provide residents living in the Southeastern portion of the City and those in the airport and County Club Estates area a way to bypass the congestion of South Iiiguera and South Streets in reaching the Freeway and the regional shopping. A variety of housing is proposed including apartments,single family and below market rate housing. These units would be close to shopping,a new school and public transportation along Madonna Road as well as the regional park. In fact it would be hard to define a place in San Luis Obispo that is better located for access to existing services than this area. An open space system has been designed to serve the neighborhood and its pedestrian access to school, parks and shopping as well as providing a visual amenity and uniqueness to the area Finally there will be provided a significant buffer adjacent to the Freeway(U.S. 10 1) to provide visual amenity to travellers along the freeway and isolate the homes from traffic noise. In addition there will be a significant extension of Laguna Lake Park along the southern portion of Prefumo Creek to connect to a neighborhood park adjacent to a potential new elementary school site. Page 2 � z a : a ` m a U ' ! % \ �' y t ..i 1 .. 1� w 1 �U Lu ZW a z z o aQ Z 96 Z CA Ul to Q o i Vit. 4004 u CL in O O O _v '•c{i..-.1_ ' ,,-bbbbbuuuuu S. :'.�- O 3 0 3� ___ .: I _ j, r.. V. o z IL OTS _ NORUP i_ no • .... ;�' P_. .,__y;,:r,i.:p i::�;,;I: '11111 \'� \ �\\�� y, .o =.-_ �` �:..�.\ � /::'/moo•a✓ How I b Ai i r. :I 1 c•. r/ �{r �= • sam_ .`,moi•/i/ \ -/\, 00 �' ,� \ tib S ' "�,•� ` \\ �\ ,,\ •.... Ilk /-20 TABLE 1: PROPOSED LAND USES: OPTION #1 (Da"o Specific Plan Area)(1) (REVISED 10-6-91) Category Acres to total Prop. Owner (2) 1. Commercial Retail W 21.4 11.6% Dalidio 2. Commercial 11 15.8 8.5 Dalidio 2a. Commercial Service(d) 5.5 3.0 Madonna 2b.Automotive Commercial 9.5 5.1 McBride TOTAL COMMERCIAL 52.2 28.2% 3. Medium High Den. (R-3) 4.1 2.2% Dalidio 4. Med. Den. Res. (R-2 PD)(a) 8.0 4.3% Dalidio 5. Med. Den. Res. W 7.6 4.1 Dalidio 5a. Med. Den. Res. (b) 2.0 1.1 Madonna 5b.Med. Den. Res. (b) 5_4 2.9 McBride Subtotal Medium Density 23.0 12.4% 6. Low Density Residential 20.5 11.1% Dalidio 6a. Low Density Residential 7.3 3.9 Madonna 6b.Low Density Residential 3.2 1.7 McBride Subtotal Low Density 31.0 16.7% TOTAL RESIDENTIAL 58.1 31.3% 7. Open Space/Parks(fl 8.9 4.8% Dalidio 7a " " 3.2 1.7 Madonna 8 " " " 7.2 4.1 DalididMcBride 9 " " 5.1 2.8 Dalidio green belt 5.7 3.1 All TOTAL OPEN SPACE 30.4 16.5% 10.School 10.0 5.4% Madonna 11.Public Roads:(9) 34.3 18.5% All Page 4 � Option #2: Agricultural Emphasis This option provides the extension of the Regional shopping as proposed in Option#1 which when fully developed would provide up to$1,000,000 annually to the City of San Luis Obispo general fund in sales taxes. This proposal differs significantly from Option#1 in that only the non fanned portion of the Dalidio land adjacent to Madonna Road of approximately 13 acres would be retained for residential development--a retirement community has been considered for the site. The balance of the land would be offered for sale to the City for agricultural/open space uses. Under City control there would be no further pressure for private development on this 67 acres which includes a four acre park extension along Prefumo Creek as well as the preservation of an additional 5 acres in. eucalyptus trees in the residential area. Cost and Payment Strategy. While the details could vary, payment of the$5.8 million for the agricultural land could come from the increased sales tax generated by the commercial development mentioned in the fust paragraph of option#2 over, for example,a 10 year period. This approach could avoid asking the voters to approve a bond issue or altering other commitments made on the City's general fund. It is noted that residential land annexed and ready for sale to a developer is worth in the area of$300,000 per acre. This offer to the City places a value of approximately $87,000 per acre for the 67 acres or approximately 29% of its annexed value. Page 5 �z Qa : m I' N ►• Z < ' 1 ` zQy _ A O ,1 • by �� y a z i ✓` �; a "�W `o � a a a � .� \, �` paaZ moo ; O 09 U \♦ LU IL IL W o LLI 00 00 Ul a \\ . •"^�{ n` O �..fg--- 'fif.�CC+r:I�''f^:;:•., =:f 1 e.,:P e5se r ''3. \ /,.'0'' / Ym 'Mal fri. v7' 2i:.r„ .,1:fi:nit•cTtt�."�iR�•C, 'r�'S � \ \ :.\ i / •.1:t max'' ' 1 � �♦ ? rJr 114/ _ fi bl\ TABLE 2: PROPOSED LAND USES: OPTION #2 (Dalidio Specific Plan Area)(1) (REVISED 10-6-91) Category Acres to total (2) 1. Commercial: Phase I 21.4 16.5% Dalidio 2. Commercial: Phase II 17.3 13.3% Dalidio TOTAL COMMERCIAL 38.7 29.8% 3. Medium High Den. (R-3) 12.4 9.6% Dalidio trees/open space(3.2acres) 4. Agriculture 63.4 49.0% Dalidio trees/open space(1.8 acres) 5. Park/Open Space 3_8 2.9% Dalidio TOTAL AGR/OPEN SPACE 67.2 51.9% 6. Freeway access 5.8 4.5% Dalidio 7. Public Roads: Prado Road extension 4.4 Madonna Road widening 0_9 ROADS TOTAL 5.3 4.1% Dalidio GRAND TOTAL 129.4 acres 100% NOTES TO TABLES: 1. The number of units and acreages identified in this table are for the purpose of determining the general land uses and their attendant impacts. It is possible that the actual number of units or the square footage will vary slightly up or down as actual site planning takes place. 2. This percentage is based on a base of 185 acres within the Dalidio Specific Plan Area The individual ownerships, based on a planimeter measurement by area are: Dalidio 129.4 acres Madonna 32.2 acres McBride 23.4 acres Page 7 Le- p I,III�I�IIII�IIIIIIIIi�i IUIUMEETING DATE: punui� city of san tuts oBispo -5 COUNCIL AGENDA REPORT ITEM NUMBER: FROM: Arnold B. Jonas, Community Development Director PREPARED BY: Glen Matteson, Associate Planner SUBJECT: Direction for planning of the Dalidio area. CAO RECOMMENDATION Discuss options for various land uses within the Dalidio area and provide direction for staff in revising the Land Use Element. DISCUSSION Situation The Dalidio area is the open land bounded by Highway 101, Central Coast Plaza, Madonna Road, and Los Osos Valley Road. While the Dalidio family owns the largest piece, substantial parts are owned by the McBrides and Madonnas (attached maps) . The whole area is unincorporated but substantially surrounded by the City. The adopted City general plan allows, upon annexation, residential development only, in a wide range of housing types, averaging about five dwellings per gross acre. The adopted County general plan and zoning allow the same upon annexation to the City; without annexation, residential development at about one dwelling per ten acres could occur. Deciding policy for the Dalidio area has been a difficult part of the Land Use Element update. The Planning Commission had recommended that the whole area be kept open. The City Council's most recent direction was to show it as an urban expansion area, but with a generous open space setback along the highway. The Council did not endorse a land use pattern, but staff understood the discussion to imply: perhaps 20 acres next to Central Coast Plaza would be for large retail stores; the southern parts of the Madonna and McBride properties could be car dealerships (about 12 acres) ; about 30 acres along the highway would be kept open; the balance would be for a neighborhood park, possibly a school site, and about 100 acres for residential development. Andrew Merriam, representing the Dalidios, is presenting two other options. They both have about 40 acres for retail development. The "agricultural emphasis" option has a 12-acre multifamily area and about 67 acres of agriculture and park. It does not show uses for the McBride and Madonna properties. The "urban emphasis" option is very similar to the "staff's understanding" approach described above, except that it has about twice as much commercial land and only about ten acres of open space along the highway. E k4 •.1-'f 1e �+++��►ni►►IViIIIIIIIP► ��Ulll city of san Luis oBispo % COUNCIL AGENDA REPORT Other land-use options --variations on these proposals-- can be discussed. Mr. Merriam is further proposing that the City buy the agricultural land in the "agricultural emphasis" option for $5.8 million. Previous Council discussion encompassed a variety of aspects of potential future use of the Dalidio area, including the following considerations: - An interest in preserving agricultural land, protecting the views and community character along this entrance to the City, and avoiding increases in traffic, air pollution, exposure to aircraft hazards, and storm water runoff (which could otherwise recharge groundwater) that accompany urban development. - Developing retail uses to enhance the viability of the Central Coast Mall which would generate more revenues than costs for the City, and increase employment opportunities. To do so, Council has expressed an intent in the possibility of attracting an additional department store to the area. - Developing housing to help match the demand for and supply of housing, including housing affordable to low- and moderate-income residents, and result in smaller increases in commuting. However, residential development traditionally results in more costs than revenues for the City. - Substantial development of the area will entail significant costs for public facilities, such as a highway interchange, roads, and water supply and sewage treatment capacity, the costs of which will likely be borne jointly by project developers and the general community. The Council also has discussed transfer of development potential within a site, so that allowing more or different development than currently allowed on part of a site would be the compensation for permanent open space protection on the rest of the site, rather than direct financial compensation. RECOMMENDATION Discuss options for various land uses within the Dalidio area and provide direction for staff in revising the Land Use Element. Attachment: Merriam proposal �i►IIII illi Illlll I�III IIIIIII I II�IIIII I I I II City of sAn luis oBisw 990 Palm Street/Post Office Box 8100 • San Luis Obispo, CA 93403-8100 October 24, 1991 TO: City Council Members VIA: John Dunn, City Administrative Officer FROM: Arnold Jonas, Community Development Director PREPARED BY: Terry Sanville, Principal Planner SUBJECT: Circulation Issues The following summarizes the comments and issues raised by City Council members at a Land Use Element study session in August, 1991 concerning circulation planning. CONCERN#1: Narrowing Existing Streets: The City's streets system has surplus capacity to handle traffic. Streets like Johnson Avenue only have traffic congestion during peak periods and are underutilized during the rest of the time. We might consider narrowing these streets and providing more neighborhood amenities. CONCERN #2: Transit Development: Transit isn't used as much as it could be because the pattern of urban development is not conducive to transit use. Areas like the Airport Planning Area should be developed in a way that facilitates transit use; and new development should support the provision of transit service to these areas. CONCERN #3: Promoting Alternative Transportation: To reduce the impacts of future growth, the city should manage growth rates and promote and require the participation in alternative forms of transportation. We can avoid traffic problems in the future by employing this strategy. CONCERN #4: Widening Streets: Widening streets is generally undesirable. It signals an undesirable change in the community's character. We should use the capacity of the existing streets fully before we consider increasing their capacity. Also, widening streets only encourages people to continue to depend on private vehicles. CONCERN #S: Level of Program Description: We need to better define programs and projects that will achieve a better modal split for the community. CONCERN #6: Use of Alternative Fuels: The City should promote the use of alternative fuels as a way of saving energy and reducing air pollution. TS:ts �-a7