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HomeMy WebLinkAbout04/01/1997, 1 - ERNIE BALL ANNEXATION: CONSIDERATION OF A REQUEST TO ANNEX TWO PARCELS TOTALING 13.46 CRES ON THE SOUTH SIDE OF SUBURBAN ROAD. ANNX, GP/R, ER 154-96. ANNEXATION #46. council j apenaa uEpont ' CITY OF SAN LUIS O B I S P O FROM: Arnold Jonas,Community Development Director Prepared By: Whitney McIlvaine,Associate Planner SUBJECT: Ernie Ball Annexation: Consideration of a request to annex two parcels totaling 13.46 cres on the south side of Suburban Road. Annx, GPIR, ER 154-96. Annexation#46. CAO RECOMIWENDATION: a) Conceptually approve a mitigated negative declaration of environmental impact and amendment of the General Plan Land Use Element text (attached as Exhibit A to the General Plan amendment resolution) to enable annexation prior to completion of an Airport Area Specific Plan, and direct staff to aggregate the resolution with other proposed General Plan amendment actions for adoption by single motion at the end of this meeting. b) Introduce an ordinance to print concurring with the mitigated negative declaration of environmental impact and prezoning the annexation area Manufacturing(1). c) Approve and authorize the Mayor to execute a pre-annexation agreement with the applicant providing for payment of fees consistent with the interim annexation policy. d) Adopt a resolution recommending that LAFCo approve the annexation. REPORT-IN-BRIEF The applicant, Sterling Ball, of Ernie Ball, Inc., needs to expand his guitar manufacturing business which is located outside the current City boundary but inside the General Plan designated Airport Expansion Area. The applicant is requesting annexation so that City services can be provided to the existing business and its planned expansion. A General Plan amendment is required to address the timing of this request in fight of Land Uses Element policies that require preparation of a specific plan for the Airport Area prior to annexation. Most annexations and all general plan amendments require environmental review. Part of the annexation process involves specifying an appropriate City zoning designation for the site which becomes effective upon annexation. The County of San Luis Obispo Local Agency Formation Commission(LAFCo)regulates annexation. In this case,LAFCo proceedings have been initiated by the applicant. City and LAFCo policies require that the Planning Commission and City Council determine the appropriate General Plan land use designation and zoning for the site to be annexed. LAFCo review will resume once Council acts on the General Plan amendment and prezoning. Final Council action is taken on the site zoning after LAFCo review. Ernie Ball Annexation:154-96 Council Hearing April 1, 1997 Page 2 The Planning Commission reviewed this request on March 12* and recommend approving the General Plan amendment to enable annexation prior to completion of the Airport Area Specific Plan; prezoning the property Manufacturing (Irl); and adopting a Negative Declaration of Environmental Impact, as outlined in the CAO Recommendation above. DISCUSSION A. Background Data Summary Applicant/Property Owners: Sterling Ball, Ernie Ball Inc. Representative: Cannon and Associates County Zoning: Industrial General Plan: Services and Manufacturing Environmental Status: The Director determined the project required a mitigated negative declaration of environmental impact on February 11, 1997. Project Action Deadline: Legislative projects are not subject to permit streamlining. Site Description The area to be annexed is developed with a 54,900 SF industrial manufacturing building, a separate warehouse structure, a detention pond for control of storm water run ofd and parking. A 402950 SF building addition was recently approved by the County Planning Department. Approximately 6 acres of the site is a vacant separate lot. Surrounding land uses include agriculture and other service-commercial and manufacturing operations. Project Description The applicant is requesting: 1. Annexation of two lots with a total area of 13.46 acres; 2. General Plan Amendment to modify existing Land Use Element policies to -enable annexation of airport area properties prior to completion of an Airport Area Specific Plan; 3. Prezoning of the project site; and 4. An environmental determination. B. Evaluation Timin¢of the Annexation/General Plan Amendment Ultimately this site is envisioned by both City and County land use plans to be annexed to the City. It is the policy of the Council to process interim annexations in the airport area while simultaneously working toward the goal of preparing a specific plan for this area. On March 11, Ernie Ball Annexation:154-96 Council Hearing April 1, 1997 Page 3 1997, the Council directed staff to implement an interim annexation strategy to enable annexation of certain airport area properties subject to specified criteria. Applicant compliance with the interim plan would be guaranteed through a formal written agreement between the applicant and the City. Annexation in compliance with the interim policy, but prior to completion of the specific plan raises the issue of General Plan consistency. To achieve consistency, staff recommends revising Land Use Element policies 1.13.3 and 7.3 to enable, and establish criteria for, interim annexations. A draft amendment to these policies - incorporating the criteria approved by the Council on March l lm- is attached as Exhibit A to the General Plan amendment resolution. Staff also recommends that this annexation request be considered now rather than at a later date in conjunction with a comprehensive airport area annexation because: 1. the site adjoins the current city limits; 2. sufficient capacity exists and the property can easily be served by extensions of existing utilities, and by existing police and fire protection; 3. the applicant is willing to contribute his apportioned share of the cost of specific plan preparation, area wide mfiastructure improvements and open space acquisition. PrezoninmIAnd Use Consistency with General Plan polices and zoning regulations is best achieved by prezoning the subject property Manufacturing. The City's general plan applies a designation of Services and Manufacturing to this site. To be consistent with this land use designation the site must be zoned either Service-Commercial (C-S) or Manufacturing (M). The applicant originally requested Service-Commercial zoning because of the broad range of uses allowed in that zone. However, given the use of the site - manufacture of musical instruments - and its location on Suburban Road - a "local street" as shown in Figure #2 in the Circulation Element - the site would be more appropriately zoned Manufacturing in accordance with the purpose and application of this zone as described in the zoning regulations: The M zone is intended to provide for assembly and fabrication activities in addition to those permitted in the C-S zone, and for limited sales and services - primarily those not directly related to local consumers. This zone will be applied to areas designated "service-commercial / light industrial" (since changed to Services and Manufacturing on the 1994 General Plan map), usually those served by, but having no frontage on, arterial streets. Manufacture of musical instruments is allowed by right in the M zone, but would require approval of an administrative use permit in the C-S zone. Furthermore, very little M-zoned property is available for development within city limits, whereas no such shortage exists for C-S-zoned AS Erie Ball Annexation:154-96 Council Hearing April 1, 1997 Page 4 property. An inventory of development and vacancy in nonresidential zones is attached. Finally, the M designation is more in keeping with the economic goal of promoting head-of-household jobs in this area within a large-lot / large-building business park setting, while minimizing the spread of retail commercial uses beyond areas designated and provided for them. Open Space Dedication The applicant has two alternatives in meeting policy requirements for greenbelt open space protection: payment of in-lieu fees or dedicating an open space easement or fee ownership for land in the southern part of the City's greenbelt. ♦ LUE Policy 7.4 Greenbelt Protection Annexation of the Airport Area, whether it occurs as one action or several, shall be consistent with the growth management objectives of maintaining areas outside the urban reserve line in rural, predominantly open space uses. An Airport Area annexation shall not take effect unless the annexed area helps protect an appropriate part of the greenbelt near the Airport Area, through one or more of the following methods: A. Dedicating an open-space easement or fee ownership to the City or to a responsible land-conservation organization. B. Paying fees to the City in-lieu of dedication, which shall be used within a reasonable time to secure greenbelt open space near the Airport Area. In this case, the applicant would pay open space in-lieu fees for the undeveloped portion of the area to be annexed in conjunction with a development application for the vacant area. Interim Annexation Financine Plan and Agreement As part of the March I Ph action, the Council also approved an Interim Annexation Financing Plan designed to assure that interim annexation applicants commit to specific plan, backbone infrastructure, and open space funding. The amount of the interim commitment has been set at $17,828 per acre, which includes $2,500 per acre for open space. The open space component is to be paid at the time of annexation. The balance can also be paid at annexation, or deferred by securing a letter of credit. Ernie Ball Guitars has conceptually agreed to the requirements of the plan. These requirements are being set forth in a "pre-annexation" agreement, which shall be available to the Council prior to the meeting of April 1°. Environmental Impacts The attached environmental initial study concludes that annexation will not result in any significant adverse impacts on the physical environment. The California Environmental Quality Act requires review of project consistency with applicable general plan policies and zoning f' / Ernie Ball Annexation:154-90 Council Hearing April 1, 1997 Page 5 standards. The potential inconsistency with Land Use Element policies related to the timing of annexation is discussed above. Potential environmental impacts of the expansion of the manufacturing business was reviewed under County jurisdiction. The County's environmental determination and use permit conditions of approval are attached to the City's initial study and thereby included in this report. ALTERNATIVES 1. Adopt a resolution denying the General Plan amendment and prezoning. 2. Continue action with direction. This action would most likely delay consideration of the General Plan amendment and annexation to allow inclusion with the next batch of General Plan amendments, now tentatively scheduled for August. OTHER DEPARTMENT COMMENTS Other department comments support annexation and are attached to the environmental initial study. Attached: Resolution for approval of the general plan amendment Resolution requesting LAFCo proceedings Ordinance for prezoning Resolution for project denial Environmental initial study —S RESOLUTION NO. (1997 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING A GENERAL PLAN TEXT AMENDMENT FOR A PROPOSED ANNEXATION OF 13.46 ACRES AT 151 SUBURBAN ROAD (GP/R/ANNX/ER 154-96) ANNEXATION#46 -ERNIE BALL WHEREAS, the Planning Commission conducted a public hearing on March 12, 1997 and recommended approval of an amendment to the general plan text to enable certain annexations prior to completion of an airport area specific plan;and WHEREAS,the City Council conducted a public hearing on April 1, 1997 and has considered testimony of interested persons, the records of the Planning Commission hearing and action, and evaluation and recommendations of staff, WHEREAS, the potential environmental impacts of the amendment have been evaluated in accordance with the California Environmental Quality Act and the City's Environmental Guidelines; BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The City Council finds and determines that the project's Negative Declaration with the recommended mitigation therein adequately addresses the potential significant environmental impacts of the proposed project, and reflects the independent judgment of the City Council. The Council hereby adopts said Negative Declaration(ER 154-96). SECTION 2. The City Council makes the following findings: 1. The proposed amendment to Land Use Element policies 1.13.3 and 7.3 to enable interim annexation of airport area properties will not be detrimental to the health, safety and welfare of persons residing or working in the vicinity. 2. The proposed amendment to Land Use Element policies 1.13.3 and 7.3, to enable interim annexations in the Airport Area prior to completion of an Airport Area specific plan is consistent with general plan goals and polices related to orderly development and ultimate annexation of airport area properties. SECTION 3. The General Plan Land Use Element text is hereby amended as shown on the attached Exhibit A The Community Development Director shall cause the change to be reflected in affected documents which are available in City Hall for public use. On motion of seconded by ,and on the following roll call vote: Annx/GP/R/ER 154-96 Ernie Ball_ Page 2 AYES: NOES: ABSENT-. the foregoing resolution was passed and adopted this _ `day of — 1997. Mayor Allen Settle ATTEST: City Clerk Bonnie Crawf APPROVED: d q ey Jo ensen /_ 7 LU 1.13.3: Required Plans Land in any of the following annexation areas may be developed only after the City has adopted a plan for land uses, roads, utilities, the overall pattern of subdivision, and financing of public facilities for the area. The plan shall provide 'for open space protection consistent with LU policy 1.13.5. A) For the Airport and area, a specific plan shall be adopted for the whole of east} area b9fQ;a any pa;% of it is annexed. Until a specific plan is adopted, properties may only be annexed if they meet the following criteria: 1) Thp property is contiguous to the existing city limits; and 2) The property is within the existing urban reserve line; and 3) The property is located near to existing infrastructure: and 4) Existing infrastructure capacity is available to serve the proposed development: and 5) A development plan for the property belonging to the applicant(s) accompanies the application for annexation; and 6) The applicant(s) agree to contribute to the cost of preparing the specific plan and constructing area-wide infrastructure improvements according to a cost sharing plan maintained by the City. C-R) For the Orcutt expansion area, a specific plan shall be adopted for the whole area before any part of it is annexed. DC) For the Margarita Area, annexation may not occur until the City Council has approved, as the project description for environmental review, a draft specific plan. Further development shall not occur until the City has completed environmental review and adopted a specific plan. (This area shall be zoned Conservation/Open Space upon annexation, and shall be zoned consistent with the adopted specific plan upon adoption of the specific plan.) EB) For any other annexations, the required plan may be a specific plan, development plan under "PD" zoning, or similar development plan covering the entire area. EXHIBIT A LU 7.3: City Annexation and Services The City intends to actively pursue annexation of the Airport Area . Airport Area land inside the urban reserve shall be considered for annexation if it meets the criteria stated'in Policy 1.13.3.A. Annexation of areas that do not meet these interim annexation criteria may be annexed subject to completion of environmental and economic studies and a specific plan. Pending annexation: A) Any urban development approved by the County shall be consistent with City development standards; and B) Urban development and provision of adequate resources and services needed citywide shall be closely monitored. EXHIBIT A 1 -9 ORDINANCE NO. (1997 Series) AN ORDINANCE OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO TO AMEND THE OFFICIAL ZONING MAP TO PREZONE APPROXIMATELY 13.46 ACRES M FOR PROPERTY LOCATED AT 151 SUBURBAN ROAD (GP/R/ANNX/ER 154-96) WHEREAS, the Planning Commission conducted a public hearing on March 12, 1997 and recommended prezoning the proposed annexation site Manufacturing (1VI); and WHEREAS, the City Council conducted a public hearing on April 1, 1997 and has considered testimony of interested persons, the records of the Planning Commission hearing and action, and evaluation and recommendations of staff in accordance with Section 65800 et. seq. of the California Government Code; and WHEREAS, the potential environmental impacts of the change have been evaluated in accordance with the California Environmental Quality Act (CEQA) and the City Environmental Guidelines. BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. The City Council finds and determines that the project's Negative Declaration (ER 15496) with the recommended mitigation therein adequately addresses the potential significant environmental impacts of the proposed project, and reflects the independent judgment of the City Council. The Council hereby adopts said Negative Declaration. SECTION 2. The City Council makes the following findings: 1. The proposed prezoning will not be detrimental to the health safety and welfare of persons living or working in the area or at the site. 2. Prezoning the site Manufacturing is consistent with the general plan land use designation of Services and Manufacturing. 3. Prezoning the site Manufacturing is consistent with the intended use and location of M- zoned properties as described in the zoning regulations. 4. A prezoning of Manufacturing is appropriate at the proposed location and will be compatible with surrounding land uses which are primarily industrial and agricultural in nature. SECTION 3: The annexation area shall be prezoned Manufacturing (No as shown on the attached map marked Exhibit A and included herein by reference. Prezoning for Annexation 1146: Ernie Ball Page 2 SECTION 4. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in the Telegram-Tribune, a newspaper published and circulated in said city. This ordinance shall go into effect upon the date of final action by the City Council on the annexation. INTRODUCED AND PASSED TO PRINT by the Council of the City of San Luis Obispo at its meeting held on the day of , 1997, on motion of , seconded by , and on the following roll call vote: AYES: NOES: ABSENT: Mayor Allen Settle ATTEST: City Clerk Bonnie Gawf APPROVED AS TO FORM: City Attorney Jeff Jorgensen R-2-S e � C PF ass R-2 ,y PF iLU C-S .' gON2TTl D . �h ' GRAriAOA CRNE -------------------------- 4 — �° C'S C-S-SP' ,D una°rt -S-p c-S c-\ R - 2 - S ` �.� M -S P C T` C/0S-2 y Tar[ i ■r ■ore D •� i C- s •` �. �� s.L.o SUSUllaa , R-1- _ " wa oma rti�cr ,��-•�/ 10 / R-2 D PROJECT SITE LU a a.. Z to be prezoned I w Manufacturing (M) U C.S U N.T.S. Y / D�nnOI"1 PREZONING EXHIBIT A ASSOCIATES Emie Ball Guitars,Inc.Annexation Area 960819%dtyzone.pm5 1214/96 1--lo RESOLUTION NO. (1997 Series) A RESOLUTION OF RECON54ENDATION BY THE SAN LUIS OBISPO CITY COUNCIL REQUESTING THAT THE LOCAL AGENCY FORMATION COMMISSION APPROVE SLO COUNTY ANNEXATION#46 AT 151 SUBURBAN ROAD (City File No:GP/R/ANNX/ER 154-96) ERNIE BALL ANNEXATION WHEREAS,the Planning Commission and City Council have held hearings on the proposed annexation on March 12 and April 1, 1997 respectively;and WHEREAS, the City Council on April 1, 1997, by Ordinance No. (1997 Series), approved a Negative Declaration with NLtigation for the proposed annexation,pursuant to the California Environmental Quality Act Guidelines Section 15090;and WHEREAS, on recommendation of the Planning Commission and as a result of its deliberations, the Council has approved an amendment of the Zoning Map by prezoning the annexation property;and WHEREAS, City Council approval is a prerequisite for the San Luis Obispo County Local Agency Formation Commission to initiate formal annexation proceedings;and WHEREAS,the territory to be annexed is not inhabited,and a description of the boundaries of the territory is set forth in attached Exhibit B;and WHEREAS,this proposal is consistent with the sphere of influence of the affected city; BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1:Fes. 1. Annexation is appropriate since the site is contiguous to the City on its north side. 2. Annexation of the site is a logical addition to the City due to its location, on-site urban development, and availability of services. 3. The proposed annexation will promote the health,safety,and welfare of persons living or working in the vicinity of the annexation area SECTION 2:Annexation Area Described. The annexation shall consist of that area,covering approximately 13.46 acres along Suburban Road, assigned Assessors Parcel Numbers of 76-352-038, 039, as shown in the site location map attached as Exhibit A and legally described in attached Exhibit B. SECTION 3: Council Recommendation The City Council recommends that the Local Agency Formation Commission of San Luis Obispo County approve the proposed annexation subject to property owner compliance with City requirements regarding environmental mitigation and public improvements as described in the Negative Declaration with mitigation,in accordance with California Government Code Section 56844 et seg. . SECTION 4: Implementation The City Clerk shall forward a copy of this resolution, General Plan and prezoning actions,the Negative Declaration of environmental impact, and all pertinent supporting documents to the Local Agency Formation Commission On motion of seconded by , and on the following roll call vote: Y I 1 . a Annexation#46-Ecnie Ball Page 2 —- AYES NOES: ABSENT: the foregoing solution was passed and adopted.tlis - -- --day of---- - =-- - -- : 1'997. Mayor Allen Settle — - ATTEST: City Clerk Bonnie Gawf APPROVED AS TO.FOR_.M EL _ Q o3=a o gF TAaK fAlb ROAD O Jd weuRe.a EL a9.9 C7 Z a 4 o a L o z' b FoQV�ryo O Y / _ �• id .Y• n I QSUCKLIC a• R ��3 - y.I 111 FyNyV O I G0 I W U66O- 0 V A C H I L L zW„ - - T R A C T _ I " 00 z �-m"s. - - r - -—-_- SUBURBAN N- 131.26'- r o - ROAD - Q %` — " N CITY OF SAN LUIS OBISPO N - - N - -Sa977'10'W - -3a3.00_ _ - S89'52'10'W 323.76' (Rt) S89'52'10"W 7 I 131.26' (R.1) ti . 1 N N i I 1 11.1 Co Ln c a O RI o n K o Z U I Q , S89'52'1O'W SR9]7'f0w192.47 I I 192.53' (Rt) _I 1 v t NI T I W C 2 N H J m W WW i95 N V < 1- I Va �� O N I ^ "� LO a� a � N I a j a I a W1 a cl 3 0 c o m NI Y�j I z OI I Z I I I N w N89'52'37-E 323.82' (RI) N89'52'37E 323.81' (R1) :• ;S3 647.63' (R1) EXHIBIT A SEC. 10 7315 R12E //S EXHIBIT B ANNEXATION to CITY OF SAN LUIS OBISPO Legal Description All that land in the County of San Luis Obispo, State of California,designated as"Parcel B" and"Parcel C",according to the map of Parcel Map No. CO-78-281, recorded June 18, 1979, as filed in Book 28,Page 28 of Parcel Maps, in the office of the Recorder for said County, except the northerly 25.00 feet of said"Parcel C"lying within the boundaries a 50.00 foot wide road named,"Suburban Road" as designated on said Parcel Map. Also: A 25.00 foot wide strip of land in the County of San Luis Obispo, State of California, lying within a tract of land commonly referred to as Lot 4 of the"Vachell Tract", according to that map eattitled,"Map of the subdivision of Lots 24-26-31, the North half of Lou 18-23-30, and the South portion of Lot 17 of the Harford and Chapman Subdivision, in Township 31 South,Range 12 East,Mount Diablo Base and Meridian", filed at the request of A.H.dt G.C.Vachell on February 6, 1893 in Book 1, at Page 4 of Li�sed Surveys in the office of the Recorder for said county, more particularly described as follows: The southerly 25.00 feet of the westerly 131.26 feet of said Lot 4 lying within the boundaries of that 50.00 foot wide road designated on said map of the"Vachell Tract". Containing. 13.61 acres. End Description I Prepared by: QA1 (� Daniel S.Hutchinson,LS 5139(expires 6/30/99) .a�A^!y S EV`v Date: 1 1 L" �5 s. tiUr� F� � o NO. 5130 d ssoatftnoeyl.aoc RESOLUTION NO. (1997 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO DENYING A REQUEST FOR A GENERAL PLAN AMENDMENT AND PREZONING FOR A PROPOSED ANNEXATION OF 13.46 ACRES AT 151 SUBURBAN ROAD (GP/R/ANNX/ER 154-96) ANNEXATION#46-ERNIE BALL WHEREAS, the Planning Commission conducted a public hearing on March 12, 1997 and recommended: 1) approval of an amendment the general plan text to enable annexation prior to completion of an airport area specific plan, and 2) prezoning the proposed annexation site Manufacturing(M);and WHEREAS,the City Council conducted a public hearing on April 1, 1997 and has considered testimony of interested persons, the records of the Planning Commission hearing and action, and evaluation and recommendations of staff, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Findin s. That this Council, after consideration of a request to amend the general plan text to enable annexation prior to completion of an airport area specific plan and prezone the proposed annexation site Manufacturing(lvl),makes the following finding(s): 1. Consideration of this annexation and prezoning request is premature and should not occur prior to completion of an Airport Area specific plan as required by adopted Land Use Element policies 1.13.3 and 7.3. (Council may insert different or additional findings) SECTION 2. Denial. The request for approval of the general plan text amendment and prezoning described above is hereby denied. On motion of , seconded by and on the following roll call vote: AYES: NOES: ABSENT: the foregoing resolution was passed and adopted this day of , 1997. Mayor Allen Settle Ernie Ball Annexation: 154-96 Resolution for denial Page 2 ATTEST: City Clerk Bonnie Crawf APPROVED AS TO FORM: City Attorney Jeff Jorgensen ��������► �� E����I IIII�IIIII�°11°�°►��� IIUIcity of son luis OBISpo 990 Palm Street, San Luis Obispo, CA 93401-3249 INITIAL STUDY ENVIRONMENTAL CHECKLIST FORM 1. Project Title: Ernie Ball Annexation, GP / Annx / ER 154-96 2. Lead Agency Name and Address: City of San Luis Obispo 3. Contact Person and, Phone Number: Associate Planner Whitney Mcllvaine, 781-7175 4. Project Location: 151 Suburban Road 5. Project Sponsor's Name and Address: Sterling Ball, Ernie Ball Inc. 6. General Plan Designation: Services and Manufacturing 7. Current County Zoning: Industrial 8. Description of the Project: The applicant is requesting annexation of 13.46 acres of property on the south side of Suburban Road. The area to be annexed is developed with a 54,900 SF industrial manufacturing building. A 40,950 SF building addition was approved by the County Planning Department on December 12, 1996. 9. Entitlements Requested: Annexation, General Plan Amendment, Prezoning 10. Surrounding Land Uses: Agriculture and other service-commercial and manufacturing operations. 11 . Other public agencies whose approval is required (e.g. permits, financing approval, or participation agreement): Local Agency Formation Commission V� The City of San Luis Obispo is committed to include the disabled in all of its services, programs and activities. Telecommunications Device for the Deaf(805)781-7410. INITIAL STUDY ENVIRONMENTAL CHECKLIST FORM 1 . Project Title: Ernie Ball Annexation, GP / Annx / ER 154-96 2. Lead Agency Name and Address: City of San Luis Obispo 3. Contact Person and, Phone Number: Associate Planner Whitney Mcllvaine, 781-7175 4. Project Location: 151 Suburban Road 5. Project Sponsor's Name and Address: Sterling Ball, Ernie Ball Inc. 6. General Plan Designation: Services and Manufacturing 7. Current County Zoning: Industrial 8. Description of the Project: The applicant is requesting annexation of 13.46 acres of property on the south side of Suburban Road. The area to be annexed is developed with a 54,900 SF industrial manufacturing building. A 40,950 SF building addition was approved by the County Planning Department on December 12, 1996. 9. Entitlements Requested: Annexation, General Plan Amendment, Prezoning 10. Surrounding Land Uses: Agriculture and other service-commercial and manufacturing operations. 11. Other public agencies whose approval is required (e.g. permits, financing approval, or participation agreement): Local Agency Formation Commission ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED: The environmental factors checked below would be potentially affected by this project, involving at least one impact that is a "Potentially Significant Impact" as indicated by the checklist on the following pages. x Land Use and Planning Biological Resources Aesthetics Population and Housing Energy and Mineral Cultural Resources Resources Geological Problems Hazards Recreation Water Noise Mandatory Findings of Si nificance Air Quality Public Services « . Transportation and Utilities and Service � , :. •,` y•: Circulation Systems `:. DETERMINATION: On the basis of this initial evaluation: I find that the proposed project COULD NOT have a significant effect on the environment, and a NEGATIVE DECLARATION will be prepared. I find that although the proposed project could have a significant effect on the environment, there x will not be a significant effect in this case because the mitigation measures described on an attached sheets have been added to the project. A MITIGATED NEGATIVE DECLARATION will be re ared. I find that the proposed project May have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT is required. I find that the proposed project MAY have a significant effect(s) on the environment, but at least one effect (1) has been adequately analyzed in an earlier document pursuant to applicable legal standards, and (2) has been addressed by mitigation measures based on the earlier analysis as described on attached sheets, if the effect is a "Potentially Significant Impact" or is 'Potentially Significant Unless Mitigated." An ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the effects that remain to be addressed I find that although the proposed project could have a significant effect on the environment, there WILL NOT be a significant effect in this case because all potentially significant effects (1) have been analyzed in an earlier EIR pursuant to applicable standards and (2) have been avoided or mitigated pursuant to that earlier EIR, including revisions or mitigation measures that are imposed upon the proposed project. 2 ;1�2"-X February 7 1997 gnat a Date Ronald Whisenand Development Review Manager Arnold Jonas, Community Development Dir. Printed Name For EVALUATION OF ENVIRONMENTAL IMPACTS: 1. A brief explanation is required for all answers except "No Impact" answers that are adequately supported by the information sources a lead agency cites in the analysis in each section. A "No Impact" answer is adequately supported if the referenced information sources show that the impact simply does not apply to projects like the one involved (e.g. the project falls outside a fault rupture zone). A "No Impact" answer should be explained where it is based on project-specific factors as well as general standards (e.g. the project will not expose sensitive receptors to pollutants, based on a project-specific screening analysis). 2. All answers must take account of the whole action involved, including off-site as well as on-site, cumulative as well as project-level, indirect as well as direct, and construction as well as operational impacts. 3. "Potentially Significant Impact' is appropriate if there is substantial evidence that an effect is significant. If there are one or more "Potentially Significant Impact" entries when the determination is made, an EIR is required. 4. "Potentially Significant Unless Mitigation Incorporated" applies where the incorporation of mitigation measures has reduced an effect from "Potentially Significant Impact" to a "Less than Significant Impact." The lead agency must describe the mitigation measures, and briefly explain how they reduce the effect to a less than significant level (mitigation measures from Section 17, "Earlier Analysis," may be cross-referenced). 5. Earlier analysis may be used where, pursuant to the tiering, program EIR, or other CEQA process, an effect has been adequately analyzed in an earlier EIR or negative declaration. Section 15063 (c) (3) (D). Earlier analyses are discussed in Section 17 at the end of the checklist. 6. Lead agencies are encouraged to incorporate into the checklist references to information sources for potential impacts (e.g. general plans, zoning ordinances). Reference to a previously prepared or outside document should, where appropriate, include a reference to the page or pages where the statement is substantiated. A source list should be attached, and other sources used or individuals contacted should be cited in the discussion. 3 Issues and Supporting Information Sources sources Potenuai�y Potentially IessThan No significant sigpMcwit sipfficant Impact issues Udm Impact ER 154-96: Ernie Ball Annexation mitigation Incorporated ... .. ... 1' LANiJ USE'.AND P[11NN.f.NG :.111foutd the:: ro osal al :Gortftict;wrth'gensrat plan deslgnatt4n or zbning7;, 1,2,4 x 5,6,7 b2 'C fitct,inrtth apphcabie envtronmenial pians orpohctes 3,8,9 x adopted by agencies with fuej d. d. on flv�r the peojectt . . x c)';:;Be.mcompattble with.bxtsttng lend Use tit the vtclrnty7 2,3 !}: Affect agricultural resources or cperatlors (e,g Impact 3 x in soils or farm fantls, of mpaCts from tntompatlbla land use's el:. ;Disrupt ar divide the ,physical arrangement of an x 1esta6ltshed .:tommunity; {tncWtling a lowincbme br NA >,r"iiirEa' t:oriimtinl )? >::.> Zoning The City's general plan applies a designation of Services and Manufacturing to this site. To be consistent with this land use designation the site must be zoned either Service-Commercial (C-S) or Manufacturing (M). The applicant is requesting Service-Commercial zoning. However, given the use of the site - manufacture of musical instruments - and its location on Suburban Road - a "local street" as shown in Figure #2 in the Circulation Element - the site would be more appropriately zoned Manufacturing in accordance with the purpose and application of this zone as described in the zoning regulations: The M zone is intended to provide for assembly and fabrication activities in addition to those permitted in the C-S zone, and for limited sales and services - primarily those not directly related to local consumers. This zone will be applied to areas designated "service- commercial / light industrial" (since changed to Services and Manufacturing on the 1994 General Plan map), usually those served by, but having no frontage on, arterial streets. Manufacture of musical instruments is allowed by right in the M zone, but would require approval of an administrative use permit in the C-S zone. Furthermore, very little M-zoned property is available for development within city limits, whereas no such shortage exists for C-S-zoned property. An inventory of development and vacancy in nonresidential zones is attached. CONCLUSION: Not significant. Consistency with general plan polices and zoning regulations is best achieved by prezoning the subject property Manufacturing. Agricultural Comoatibility The project site is adjacent to agricultural operations to the south. However the County environmental review of an expansion for the guitar manufacturing business (D960089D / ED No. 96-429 - construction of a new 41,000 SF manufacturing building) notes that the County Agricultural Department determined the project would be compatible with existing agricultural operations due to the distance between uses (225 feet). CONCLUSION: Not significant. The project is compatible with nearby agricultural operations. Airport Compatibility On the City general plan land use map and in Figure 9 (Airport Area map) of the Land Use Element , the site is included within the boundaries of the Airport Area. On November 20, 1996 the Airport Land Use l 4 1-v-3 Issues and Supporting Information Sources sour= Potentially potrntially IessThan No significant sguficant signifimnt Impact bum Unless hvact ER 154-96: Ernie Ball Annexation mtigafi0° laoocporaW Commission approved the development plan for the expansion of the guitar manufacturing business. The use of the property for manufacture of musical instruments is consistent with the County Airport Land Use Plan. CONCLUSION: Not significant. Annexation and ongoing guitar manufacturing are compatible with airport operations. Land Use Element Policies Ultimately this site is envisioned by both City and County land use plans to be annexed to the City. It is the policy of City Council to process interim annexations in the airport area while simultaneously working toward the goal of preparing a specific plan for this area. Until the airport area specific plan is complete, there is a potential inconsistency with adopted Land Use Element polices 1.13.3 and 7.3 related to annexations. Governing Policies: ♦ 7.2 Airport Land Use Plan Development should be permitted only if it is consistent with the San Luis Obispo County Airport Land Use Plan. Prospective buyers of property which is subject to airport influence should be so informed. CONCLUSION: Not significant. The project is consistent with this policy as noted immediately above. ♦ 7.3 City Annexation and Services The City intends to actively pursue annexation of the Airport Area by the year 1995. Airport Area land inside the urban reserve shall be considered for annexation subject to completion of environmental and economic studies and a specific plan. Pending annexation: A. Any urban development approved by the County shall be consistent with City development standards; and B. Urban development and provision of adequate resources and services needed citywide shall be closely monitored. The expansion of the manufacturing business is a development project taking place under the County's jurisdiction. City comments regarding the proposed expansion of the manufacturing facility have been forwarded to the County. The City Engineer has certified that adequate resources exist to serve the site upon annexation, subject to compliance with City water and sewer regulations. Utilities and services are available in the Suburban Road right-of-way to serve urban development of this site. However, the required specific plan has not been prepared. CONCLUSION: May be significant. Timing of the request for annexation is consistent with the City's stated timeline. Unfortunately, preparation of the specific plan is taking longer than originally anticipated. See discussion under Land Use Element policy 1.13.3. Staff's recommendation for a revisions to policies 1.13.3 and 7.3 is attached and will be reviewed by the Planning Commission and City Council in their consideration of the general plan amendment request. ♦ 7.4 Greenbelt Protection Annexation of the Airport Area, whether it occurs as one action or several, shall be consistent with the 5 / a41 Issues and Supporting Information Sources Sources potenuauy potentially No significant siguficant Sigtificant bmpact Issues Unless b npact ER 154-96: Ernie Ball Annexation mitiption Lworpmw growth management objectives of maintaining areas outside the urban reserve line in rural, predominantly open space uses. An Airport Area annexation shall not take effect unless the annexed area helps protect an appropriate part of the greenbelt near the Airport Area, through one or more of the following methods: A. Dedicating an open-space easement or fee ownership to the City or to a responsible land- conservation organization. B. Paying fees to the City in-lieu of dedication, which shall be used within a reasonable time to secure greenbelt open space near the Airport Area. The applicant is opting for method B. A fee of $20,000 is the cost apportioned to this annexation request for acquisition of open space buffer to the south of the Airport Area. Only that portion of the open space cost associated with construction of the presently proposed building would be due upon annexation. The remainder would be collectible only if and when the rest of the property is developed. CONCLUSION: Not significant. The project is consistent with greenbelt protection policies. • 7.5 Internal Open Space The areas designated for urban uses, but not necessarily each parcel, should include open areas as site amenities and to protect resources, consistent with the Open Space Element. In addition, wildlife corridors across the Airport Area shall be identified and preserved. CONCLUSION: Not significant. This site is not identified in the Open Space Element as having resources which must be protected. • 7.6 Development Before Annexation A. Areas which are designated for eventual urban development may be developed during the interim with rural residential or rural commercial uses. In such areas, County development standards and discretionary review should assure that projects will not preclude options for future urban development consistent with the City's planning policies and standards. Before any discretionary County land-use or land-division approval for such areas, a development plan for the site should be prepared, showing that circulation, water and other utility, and drainage proposals will be compatible with future annexation and urban development. B. Any development within the urban reserve approved by the County prior to annexation should comply with City standards for roadway cross-sections, bus stops, walking and bicycle paths, landscaping, view protection, setbacks, preferred site layouts, and architectural character. City and County staff are coordinating review of the proposed business expansion to ensure that circulation, water and utility, and drainage proposals will be compatible with future annexation and urban development and consistent with City standards. CONCLUSION: Not significant. Site development is being designed in compliance with this policy. • 7.7 Transit Service Transit service linking development sites with the citywide bus system should be provided concurrent with any additional urban development in the Airport Area. 6 Issues and Supporting Information Sources sources p0 laltY PotrntialtY IasThan No sippifcant Sig, a nt Sigaifiraat Impact Issues Unless Impact ER 154-96: Ernie Ball Annexation mitigation According to the City Transit Manager, transit service is not expected to be expanded along Suburban Road in the next 5 years. There is currently a bus stop at the corner of Suburban Road and South Higuera Street. CONCLUSION: Not significant. Additional transit facilities are not expected to be needed for at least 5 years. ♦ 7.8 Specific Plan The City will prepare a specific plan for land uses, habitat protection, circulation, utilities, and drainage within the Airport Area. City Council is scheduled to consider a means of financing the specific plan preparation and that plan's environmental review in March 1997. The applicant is willing to contribute a pro-rated share of the cost of specific plan preparation. CONCLUSION: May be significant when considered together with policies that stipulate preparation of the specific plan prior to annexation. However, the project will further the goal of specific plan preparation by contributing a portion of the estimated preparation cost. See discussion under Land Use Element policy 1.13.3. ♦ 7.14 Open Space Dedication and In-lieu Fees In approving development proposals the City will assure that Airport Area properties secure protection for any on-site resources as identified in the Open Space Element. These properties, to help maintain the greenbelt, shall also secure open space protection for any contiguous, commonly owned land outside the urban reserve. If it is not feasible to directly obtain protection for such land, fees in lieu of dedication shall be paid when the property is developed, to help secure the greenbelt in the area south of the City's urban reserve line. The City shall set fee levels that would be appropriate in-lieu of open space dedication. CONCLUSION: Not significant. The project is consistent with open space protection policies. See discussion under policies 7.4 and 7.5. ♦ 1.13 Annexation and Services ♦ 1.13.1 Water & Sewer Service The City shall not provide nor permit delivery of City water or sewer services to the following areas. However, the City will serve those parties having valid previous connections or contracts with the City. A. Outside the City limits; B. Outside the urban reserve line; C. Above elevations reliably served by gravity-flow in the City water system; D. Below elevations reliably served by gravity-flow or pumps in the City sewer system. CONCLUSION: Annexation into the City is requested to enable compliance with this policy. ♦ 1.13.2 Annexation Purpose and Timing Annexation should be used as a growth management tool, both to enable appropriate urban development and to protect open space. Areas within the urban reserve line which are to be developed with urban uses should be annexed before urban development occurs. The City may annex an area long before such development is to occur, and the City may annex areas which are to remain permanently as open space. An area may be annexed in phases, consistent 7 Issues and Supporting Information Sources Sources Potentially Potentially Less Ihan I No significant Significant Significant fact Issues Unless impact ER 154-96: Ernie Ball Annexation rnitigat;on Incorporated with the city-approved specific plan or development plan for the area. Phasing of annexation and development will reflect topography, needed capital facilities and funding, open space objectives, and existing and proposed land uses and roads. Recent applications and inquiries with the City indicate an interest among some property owners to annex ahead of specific plan preparation, so airport area annexation is likely to occur in phases. In the case of this annexation request, topography poses no issue since the site is essentially flat. Needed capital facilities and funding are outlined in the attached letter from the Community Development Director to the applicant. The applicant recognizes the importance of providing and/or funding such facilities for the orderly development of the area. The annexation furthers open space objectives as discussed elsewhere in this section. Existing and proposed land uses are consistent with the general plan land use designation of Services and Manufacturing. Street frontage improvements currently exist along the developed parcel. CONCLUSION: Not significant. Urban development is desired and can be accommodated at this location. • 1.13.3 Required Plans Land in any of the following annexation areas may be developed only after the City has adopted a plan for land uses, roads, utilities, the overall pattern of subdivision, and financing of public facilities for the area. The plan shall provide for open space protection consistent with policy 1.13.5. A. For the Airport and Orcutt expansion areas, a specific plan shall be adopted for the whole of each area before any part of it is annexed. C. For any other annexations, the required plan may be a specific plan, development plan under "PD" zoning, or similar development plan covering the entire area. A specific plan for the Airport Area is not likely to be completed for 18 months to 2 years. In response to recent annexation requests, City staff are developing an interim plan for Council consideration in order to provide for orderly development that meets City and County objectives for this area. Applicant compliance with the interim plan would be guaranteed through a formal written agreement between the applicant and the City. The applicant is willing to contribute funds toward the preparation of an airport area specific plan. CONCLUSION: May be significant. Annexation prior to completion of the specific plan raises the issue of general plan consistency. To achieve consistency, either the airport area map shown on Figure 9 in the Land Use Element must be amended to exclude this site or policy language must be modified to enable and establish criteria for interim annexations. The applicant has applied for a general plan amendment to enable the annexation to be consistent with general plan policy. A suggested revision to Land Use Element policies 1.13.3 and 7.3 is attached and will be considered by the Planning Commission and City Council as part of the general plan amendment request. • 1.13.4 Development and Services Actual development in an annexed area may be approved only when adequate City services can be provided for that development, without reducing the level of services or increasing the cost of services for existing development and for build-out within the City limits as of July 1994, in accordance with the City's water management policies. The water management policies may allow part of the water retrofit credit that would be needed for build-out within the 1994 city limits to be used for annexation projects. Water for development in an annexed area may be made available by any one or any combination of the following: A. City water supply, including reclaimed water; B. Reducing usage of City water in existing development so that there will be no net increase in long-term water usage; 8 /-d 7 Issues and Supporting Information Sources Sources pote,u;auy pOi�h �O No Significant Significant Sisrot nt Impact Lawes Unless Impact ER 154-96: Ernie Ball Annexation "lwoon Incorporated C. Private well water, but only as an interim source, pending availability of an approved addition to City water sources, and when it is demonstrated that use of the well water will not diminish the City's municipal groundwater supply. The applicant is proposing to continue use of well water for domestic purposes and landscape irrigation. Water use is estimated to be roughly 24 acre feet per year after the expansion project is complete, based on City of San Luis Obispo water use factors (0.22 acre feet per year/1000 SF). Actual water use is expected to be far less (less than 5 acre feet per year) based on historical use and the fact that the manufacturing operation uses no water. Because the anticipated water use for the existing business is so minimal and since no hook up to City water is requested, the annexation is not expected to have any impact on the City's available water supply. Future development on the vacant parcel will be subject to City water allocation regulations. The City has restricted the total amount of water available to annexations, including those in the airport area, to 300 acre-feet (Water&Wastewater Element(WWE), Section 8.3 (Table 8) [source 7]). This allotment may be expanded as a result of the City's water reclamation project, which is anticipated to increase the available water supply by roughly 1200 acre feet per year. This additional water is expected to be available as soon as 1999. Under current regulations, to obtain water from the city's supplies, a developer must retrofit existing plumbing fixtures (Policy 8.2, WWE). If other annexations use all of the 300 acre-feet prior to application by this developer for building permit, no water allocations will be issued and no building permit will be issued, until additional water supplies are available or until the City Council determines that additional water will be made available for annexations.A tally of potential allocations in annexation areas is attached [source 81. CONCLUSION: Not significant. No impact on available water supply is anticipated as a result of annexing the Ernie Ball property. Future site development under the jurisdiction of the City will be subject to the City's water allocation regulations. ♦ 1.13.5 Open Space Each annexation shall help secure permanent protection for areas designated Open Space, and for the habitat types and wildlife corridors within the annexation area that are identified in policy 6.1.1. Policies concerning prime agricultural land shall apply when appropriate. The following standards shall apply to the indicated areas: D. Airport Area properties shall secure protection for any on-site resources as identified in the Open Space Element. These properties, to help maintain the greenbelt, shall also secure open space protection for any contiguous, commonly owned land outside the urban reserve. If it is not feasible to directly obtain protection for such land, fees in lieu of dedication shall be paid when the property is developed, to help secure the greenbelt in the area south of the City's southerly urban reserve line. Site specific resources identified in the Open Space Element are the Unocal wetlands, which do not extend onto the project site. The project's contribution to greenbelt open space is discussed above. CONCLUSION: Not significant. Project is consistent with this policy. ♦ 1.14 Costs of Growth The costs of public facilities and services needed for new development shall be borne by the new development, unless the community chooses to help pay the costs for a certain development to obtain community-wide benefits. The City will adopt a development-fee program and other appropriate financing measures, so that new development pays its share of the costs of new services and facilities Issues and Supporting Information Sources s«.r� potentially potentially Iesa Ivan hT significant Significant Significant Impact Issues Unless Impact ER 154-96: Ernie Ball Annexation mitigation Incotporated needed to serve it. CONCLUSION: Not significant. Upon annexation, the development project, which is being processed in the County, is subject to City traffic and sewer impact fees, lift station fees, participation in the cost of sewer and water line extensions, and installation of an on-site fire hydrant to ensure compliance with this policy. ♦ 1.15 Solid Waste Capacity In addition to other requirements for adequate resources and services prior to development, the City must determine that adequate solid waste disposal capacity will be available before granting any discretionary land use approval which would increase solid waste generation. CONCLUSION: Not significant. Solid waste from this site will be delivered to Cold Canyon landfill which currently has a capacity to accept solid waste for at least 20 years, based on the current rate of disposal. 2 '.POPUTATIORANDHO JUS ING b.u. the ro osal• x a),;;.Cumulatwely,exci:ed aflYcral regional or local population 1 prolectrons� x b) .:.n. substantial or�Yv�ith H1 8r1 area either dirt3Ctly or ;indirectly (e g through protects in an unieveloped area: ar mal9ranfrastructure? : L:::;.Displace ...existing azousmg, :especially :affordable X houmn. -� - NA The Land Use Element (LUE) growth management provisions (section 1.0 of the LUE) call for limitations on the number of residences that may be built every year, to maintain an average growth rate of one percent per year during the 1990s. The maximum population projected for the city is 57,700. The current population is 41,943, according to California Department of Finance estimates.This number is a 1.6% increase from the previous year (41,295) but a decrease from two years previously (43,919). Since this project does not propose construction of housing, it will not contribute directly to any population increase. Roughly 100 new jobs will be created as a, result of the expansion project now being reviewed by the County. These 'obs are anticipated to be filled b local residents. 3c..€GEOLO'GIC PROBLEMS ::iNoul :she. roposal result m or:°ex oser ed tafc otential e....n avis irfvolvtn al>Fault rupture 11 x b) 'Seism t.ground baking? 1 x e}...Se�sm�c ground.failure, includ , ra uefaction't 1 x mS q uJ..: tsunami tar votcamc haard� x NA e) Landslides ur mudflovus? 1 x nr Iur�stabla sail x } t=roe,tyr>,..chariges m topogrept►y' 9 cohdtfionNo s from excavation, grading, or filh g) Subsidence of the in. 9 x ;h}: fxpansivesprls� 9 x a). Ltntqutgeologic or physical feaiurHs> x NA There are no known faults on site or in the immediate vicinity. The site is in Seismic Zone 4, a seismically active region of California, and strong ground shaking should be expected during the life of on-site structures. Any structures must be designed in compliance with seismic design criteria established in the Uniform Building Code. The site is shown on the Seismic Safety Element map as underlain with recent alluvium, which has a high potential for liquefaction, however the Soils Engineering Report prepared by 10 Issues and Supporting Information Sources sonnoes rotenLwy rotenually lass Ilion No significant Significant Significant Impact Imes Unless Impact ER 154-96: Ernie Ball Annexation mitigation Incorporated Pacific Geoscience, Inc. for this site [source 91 indicates no potential for liquefaction or subsidence. Expansive soils are present and direction for construction methods in such soils is provided in the soils report. The site is essentially flat with no unique geologic or physical features. CONCLUSION: Not significant. There are no known geological or soils conditions that would make this site unsuitable for develo ment. 4 WA rER. Vilould..the no osai result [n: a1 Changes irC absorptwtl rates, dramas a patterns, nr the 3 x rate and aMount of surface runoff? b� .ExpgsuTe pf.Penple yr prpperty to yvater-retated 3 x &...such as ffoading� cj : Dtschaige rnto surfape waters ai other alterati4r of 3 x surface yratef quality (e g temperature, dtssotved NA o5rygtln or tufbidrty? } Changes rn the amount of surface waster m any water 3 x 1ZI�d�+� NA ef.. Changes rn curcents,or,the course nr daecttpn mf water x mavemenis� >'' NA fj Change in the quantity of groundwaters,eRher 3 x . through direct addRrops yr wrthdrawals or ihrvlgh interception of an aquder by cuts yr excavatrans or :..:.:...:. . . . A rou f�auhit.@ ppabiEity? Altered dIreoTon ar rata of fJovv of groundwater? 3 x h} Imp3ptsto:9Tv�ndwate�quahtY7 3 x i) Substarttlal reduction an the amount of groundvyrater 3 x otherwise:availablefor pbfwvateisu. Annexation by itself poses no issue related to surface and groundwater. Well use is subject to approval by the County Environmental Health Department and the Regional Water Quality Control Board. The issues of well use, wastewater discharge, and storm water detention are addressed in the environmental review and conditions of the County's development plan approval, which are attached to this report [source 31. City staff understands that the applicant intends to abandon the existing septic system and hook up to the City's sewer system if annexed. CONCLUSION: Not significant. QUALITY. Would>ithe rti"osal ; , x al. Violate any r.qu9.it standard ur contribute to An 3 existing or projected air xlua6ty'vteilatrori {Compliance vutth APCD 1=nyirpnmeetal Guidelrne3i� bj Expose sensitive receptors to gntlutarrts 3 x cI ,Alter air movement,moisture, or terraperature, or cause 3 x 0.161�2 any h' 9. rrt cltmate� Create o6 3 x Annexation by itself poses no threat to air quality. Air Pollution Control District staff reviewed the expansion project approved by the County and determined that neither the construction nor the manufacturing operation would exceed the District's significance thresholds. CONCLUSION: Not significant._ S :°7RAN5POfi AT IQNICIRCUtATIO. . --.W.1d:ahe ms 3 a). Increased veflrcle tripsq�traffic catigestwc� x 11 1-30 row Issues and Supporting Information Sources Sources Pipific nt SiVIM JY ��'an im SigtiScant SignifiNo cant SiBtificant Impact Issues Unless Impact ER 154-96: Ernie Ball Annexation mitigation incorporated }�} Hazards to safety frgm cJestgn features (e g sharp 3 :.curves,Ar dangerqus tnterseGtignS} qr mcompatlble uses Ie g farm equtpmen, c} ,`Inadequate emergency access or access to nearby 3 x uses . d). Insufficient parkng capacity on sde ar off seta? 3 x x e) Hazards nr f>arners far pedestrians ar bicyclists?: 3 f) .. Conflicts Mi:vvrth adopted goLcies supporting alternative 3 x .. transporkat�an{e g bus;tumouts, btcycle racksj� waterborne or air tiaffic,Ampacts Ie g 3 x :. eom attbili with San'iMIS— IS v Oo Annexation by itself will not alter traffic impacts associated with the existing and expanded manufacturing operation. If annexed the expansion project will be subject to the City's traffic impact fees which were established (Resolution No. 8406) to mitigate the impacts of new development on the City's streets, transit, and bikeway facilities. The County reviewed the development project for potential impacts and determined traffic impacts are not significant, but did condition the development plan approval to require that the applicant request an evaluation of carpooling opportunities from the Rideshare program through SLO Regional transit. Air traffic compatibility is discussed in Section 1. CONCLUSION: Not significant. ...... .; 7:. BIOLO.GlCA1 RESOURCES1louldthe "ro osal:affect. a): x Endangethreatened or rare:SPectes or their hal7itats 10 red, Including but tot limited to giants,fish;ansects, animals or birdsj� x Locally tiesignated species (e 9_ herlta9e treest�: 10 x c1; Locally designated natural communitres to g oak 1,10 forest,;t pas. habtta#, etC sWetland habitat fe 9 m8rsh,r�panari 0nd venal,po61? 1,10 x e� Wlldli€edts em or::mi ration:icorndars7 1,10 x Based on information in the application, a field inspection, and a review of relevant references in the Department, staff has determined that there is no evidence before the Department that the project will have any potential adverse effects on fish and wildlife resources or the habitat upon which the wildlife depends. No impact to biological resources was identified in the County review of the expansion of the manufacturing use. CONCLUSION: Not si inificant. 8a ENERGY°ANQiM[NERAL RESOURCES :Would the r osal al Conflict vvtth adopted energy conservation plansT x b) lJse r�on-renewable tes0Ur.0 s m'a v�rastefuf and x Inefficient ' G) the avaHab Result in (OSS of All Af a known mmerel x resource that would be of future value to the reglOn :.::and:.the.residents of:.tF a$tats? CONCLUSION: Annexation by itself has no impact on energy conservation. No impact to energy and mineral resources was identified in the Countv environmental review of the develo.p ment Ian. 9; HAZARDS Wputd the ro gsal mvotve, .. A risk`of accldentaE explosion or release of 1►azardous' 13 x a) substances irrcludtn9 but nt►t}Imlt o qtl, pesticides, chemicals or radiation)? x } ._Possible interference with;an emergericy.re$ganse..plan; 13 12 Issues and Supporting Information Sources sources Potenhaily Potwhalty IessThan No Significant significant Sigfificant bmpad issues unless Impact ER 154-96: Ernie Ball Annexation initiption�a or emergency evacuattoit pfan� cJ.. The.reat!on of any health hszard�r potential health 13 x hazard? dl Exposuie of people................ to etsources of potenttai 13 x healtt> hazartls? ei :Increased fire hazard m areas with flammbte brush, 13 x rass........................tre'es?. Annexation is not anticipated to result in the creation or exposure of people to any known health hazards. Comments received from the City Fire Department note that future site development will be subject to preparation of an environmental site assessment to determine if there are any soil contaminates related to past agricultural uses. Ongoing operations are subject to State standards for hazardous materials storage. CONCLUSION: Not si nificant. so °10 fV01SE .:WouId the ro otiMresult et J Increase an extstlnp>nolse levels? 1,3 b] Exposure of.peopie ta'unaccegtabie" np►Se levels as 1,3 x : defined by the Sarr Luis 4tsispo General P[arI Coise sms M. The manufacturing use is not a noise sensitive use as described by the Noise Element of the General Plan, nor are any surrounding uses. The developer's agreement processed through the County in conjunction with the expansion of the current manufacturing use states requires installation of soundproofing between ancillary office areas and the primary manufacturing areas. CONCLUSION: Not si nificant. 1,1 PUB)IG SERVICES' Would'the prvpvsal have an effect uPo . or result jn a reed for ne+ni yr dF#erect ovemment services in an of the f0 own -arias:; €......: a}: Firepro.... � 13 x i 1.X. Poitce.;l5r'otect�on7 13 x cl: Sehnols7 x Mainteppince of public#acA esu tncludutg roads 13 x J.> Other: ovemmentai seances?. 13 x Annexation is not anticipated to have a significant impact on public services. Comments from the City Fire and Public Works Departments (attached) have been forwarded to the County for consideration in their review of the building permit application for an expansion to Ernie Ball's manufacturing operations. If annexed City traffic impact fees will offset any impacts to City maintained roads. CONCLUSION: Not si nificant. .................:..:............::. .......... ...........:: 1;2 11TJLITIES AND SERVICE SYSTEM$ WoWd the propose.result m a neer!fpr now systems or Supp. .. . arau6stantial;alteratiorxs.toahe follawin utdrttes• ::.. a). Power or natural gasp x b): x �ommunlcatlons systems? cl Loaa.or reg►anal y�ra#erweatment grstnbutrvn 13 x facdlties7 ............................. qr septic tanks? 13 x 66. el: Stornr water tiratnage> 3 x fJ; Solid,waste disposal- x 1 .Local.t r iprtal dater. IiesT 7 x Comments from the City Public Works Department note that any connection to the City water or sewer main will be subject to reimbursement. Storm water drainage is addressed in the County environmental review. Project impacts on water supply and consistency with City water supply policies are discussed in 13 /—Z.� sou= potentiPowntially L=Than No Issues and Supporting Information Sources significant Significant Sigaificant Impact UMM Unless lnvd ER 154-96: Ernie Ball Annexation mitigation lamporaw Section 1 Land Use. CONCLUSION: Not significant. ............................. ........................... . ..................... ......... S::' W Id.t tc `::Would 0V A ........... 'Y;Affect. ;'Et'' !��.i%ns a: ........................... ......... ............... ... x Z.00 monstrabi LZ ..................... .................... of iCreate:G ht or.,glare? ............. Annexation by itself will have no aesthetic impacts. Future development of the vacant portion of the site to be annexed will be subject to architectural review and approval to ensure against negative aesthetic impacts. CONCLUSION: Not sionificant .... .......... r: :,q. .......... .14,CULTURAL RESOURCES:.W'ou]&theJP'rodiaL.M aI ..... . .... ............... .... D'9tWO .... I' bi C x 3 ............Disturb M........ x sbVi�; archa'... 7 3 .. .... ..........i 3 x .......... ............. ............................cj Affect ........... .... ... ...h' ....14............Ii......... x :M:M. . 6.1 .0...PO IchangeM ich.......... 3 ..;Have a :;a:lj physical ......... .d) potential to.causc. .w..o..u....t. sa......e :...:.�.u...h......i..q....d......4.....#.... ...q....0 ...:P.P...... ........u...r..a.....�..y...a ............ . .existing VreH sacred uses �within... .......v. M. 3 x ote ........... nta CONCLUSION: Not significant. County environmental review of the development plan for an expansion to Ernie Ball's manufacturina onerations did not identifv an Dotential impact.to archaeo r looic I resources. .............:....... . ....... ...................... ........ ..........;.:.R.....E...C.....R........... ....... N. W.......d......W....d...r..................p. r.. 0. .............$...:... .....-'. ..i . ........ .....2m;: ...:.:..... x. . . diormeifib69hVPd�Mriregloa .......... park ........... ....................... ..... ona.:,.a8.fi.,, sy .......... acreati ...... ........... pp x ecteAs inb4tcrd4tiohall 0I ff A' Nota pplicable. ............. "WINGto SIGNIFICANCE .................... 1.6.'-..MANDATORY ...... h the x I d 'd r.4 h 9 to: 69M ............. ..............................................l.i.t..y....b.. ft..h... e envroym. .....iiP..bstantially reduce the. ............ habttatof a fish Or W wilit .s X. �i. ..........]..�...fish;or .....ldlife population to drop tlelotiv ...................... ....0.....nQ ............. threaten . . ... T community, .....M:i.......................... ..... . .......... ...... ............ . M be' . X 4ar.e..... or. plan endange a examples of the o.r.i Y yr re is . ..... NX I ... The applicant is requesting approval of an annexation and general plan policy amendment only. Neither of these requests will result in any direct physical impact to the environment. Any future development of the proiect site is subject to California Environmental Qualitv Act requirements for further environmental review. 7�.6ithe. . '. "h ...the"Po.... i.al�Im achieve.ch-evo. :0 x �J aye.jip. P .. tent . ..... ...... en+.-r rim ..... term, ,<o b. tot . ........ oats? ental .:....... Short-term and long-term goals are the same. Mdlq�lre ........ x fi. :Pn Doe"S' :' , bloici ............. the ..tlJ#v0.iJq" ....... alty ........ som......................................... latively considerable"... ...... ............. that . ....... inarrementat effects of ....... Vt 6 ...............a............ ....... ..... ............ I project............ ..... . ...... sae�z ........................... ........... nnectlon T........... ...... .. ................ other 14 Issues and Supporting Information Sources source PO lal y potrneiauy [s� I1+an xo significant sipificaat sipffiew Impact Lsua Urias Impact ER 154-96: Ernie Ball Annexation mWsatia+ The annexation will not result in any potentially significant impacts to the environment. An amendment to the general plan to provide for interim annexations in the airport area prior to completion of a specific plan may accelerate urban development in the airport area. However, each annexation and development project is subject to environmental review and compliance with adopted policies related to growth management and resource availability. d} ;iDoes the prvlect have enanronmen#at. ffects ucft wtll x ... substantlat adverse affects on human be►pgs,, eitNer.tlitectf ar indileitl ?...:: There are no known significant hazards associated with the annexation or the ongoing manufacturing operations. 17. EARLIER ANALYSES artier analysis may be used where, pursuant to the tiering, prm. ogram EIR or other CEQA process, ane or rr►nre effects#lave been adequately analyzed m ari battier 1:1f3 or Negat+ve Oeclarattor► Getsn 15063 {ci {3y.. (Dl: In this:case a discussion should Iden the foHowrn items ai:::Eerlier.:anat s�s:used.:.:ldenu °earLer anet ses and state;`wbera:the are avadable[for.reWlevu. . NA ..............::.�....,...,.......:...:.....:......................�. ..::....... ...::::::::.: :,;>:;:;,:.:;»;::: :;>.,,,..,..:::::::::::.......I...::::....:ar:::': >,;<:.:..::;:::>:: b);: Imparts adequately addressed. Itlertbfy which,effects from the,above Checklist were vv�thin the scope of and "adequately analyzed �n are ead�er document pursuant to appl"icabte legal standards. and state whetf e:r such;effects:were add essed#i .miti 'titian.fnea'sures based on:ahe ea.mer.anal'tsis NA cl:``Mml etion measures dor affecte that are "Less%:..W 5i8n�ficarLv+nth M�upatron.lnenrporated" describe the rrSgatibn rrieAsures vrrf�iCit were tncor�bratetl br J ef,ned On. ii e. .idr466U .. t to .: which€th .::address-S e s c fic.conditions of:the:grip es# ._ ;. NA Authority Pub4c Resources Gade'Sect�ans 21 gf33 ansae3 087, Aeference..publrc Ftesocjrces,Code Sect+or:s 21080'{c). 21001, 21:0803, 21082. S, 21083, 21083 3, X1:093, 32]004, 21151 u»dst�arrru our�syof�l�lendocino, 202 Cal App. 3d 2 6 {95811�Leonolffvsm �Iontere Baardof5u eZvisais,,::22Z CaI ;A 3d 1337:{:1990) 18. SOURCE REFERENCES 1. City of San Luis Obispo General Plan: Land Use, Circulation, Noise, Energy, Open Space, Seismic Safety Elements 2. City of San Luis Obispo Zoning Regulations 3. County Environmental Determination No. 96-429, Development Plan D960089D conditions of approval 4. Table of Development and Vacancy in Non-residential Zones 5. County of San Luis Obispo, San Luis Obispo Area Plan, January 1997 6. City of San Luis Obispo Source Reduction and Recycling Element 7. -Cityof San Luis Obispo Water and Wastewater Element 8. Letter from Tim Girvin outlining water allocations for annexed properties 9. Soils Engineering Report for the Ernie Ball Expansion prepared by Pacific Geoscience, Inc. Job No. PG-6590-W01 15 L/ /� T 10. City of San Luis Obispo Informational Map Atlas 11. San Luis Obispo Quadrangle Map, prepared by the State Geologist in compliance with the Alquist- Priolo Earthquake Fault Zoning Act, effective January 1, 1990 12. Letter from Arnold Jonas outlining applicable fees in the event of annexation 13. City Department Comments ATTACHMENTS: Project statement and site location map Suggested amendment to the Land Use Element Table of Development and Vacancy in Non-residential Zones Letter from Tim Girvin outlining water allocations for annexed properties Letter from Arnold Jonas outlining applicable fees in the event of annexation City Department Comments County Environmental Determination No. 96-429, Development Plan D960089D conditions of approval 19. MITIGATION MEASURES/MONITORING PROGRAM 1. Mitigation Measure: Amend Land Use Element policies 1.13.3 and 7.3 in order to achieve consistency between this annexation project and general plan polices related to the timing of specific plan preparation relative to annexations in the Airport Area. Monitorina Proaram: The Planning Commission and City Council shall consider amending the general plan in reviewing the annexation proposal. The above mitigation measure is included in the project to mitigate potential adverse environmental impacts. Section 15070(b)(1) of the California Administrative Code requires the applicant to agree to the above mitigation measures before the proposed Mitigated Negative Declaration is released for public review. 1 hereby agree to the mitigation measures and monitoring program outlined above. Applicant Date 16 _ �, a F 61 NT � I I\ \ \ m I > z R � /� 26 D � � � �• � UPfTA •1 C.W Q a � /• 2 S Vlq i� � /• 'ORg00 � PAZ i _. ._. Z / W , / S PRADO / 200 I W CL C / W I / O BONEM RA A/ N N O Z M v \ oJti TANK FARM / HUPARROSA 0 J c cySUBURBAN z N V CI) W � / CO b I � W LOS P a VICINITY MAP 151 Suburban Rd. NORTH GP/ANNX/ER 154-96 AJ Ernie Ball Annexation # 46 I-34 .►�;�■ ;=,iii 40 gwifg �_nw tA ■1 OEM a to I — .........ow is . ........... HI ERA CO MERCE LU r / J PROJECT SITE\ \\` (designation to remain Services & Manufacturing)\ COMMERCIAL \ NelgNxwhood Businesses serving and compatible with . nearby housing. "N' means. on: Individual nelghborhood—serving business. Tourist Businesses which primarily serve visitors and travellers. 4 Open Spa= Servbss and Manufaatuft Land to remain open for the protection. Business services, wholesaling and sales _use, and enjoyrnent;of natural resources. of large Items, and light manufacturing. N While they are not shown on this map. (Note: see policies for airport area.) all creeks are within this category. N.T.S. ID ReQastiorc Buahiese Park Publicly or privately awned recreation An area to be kept in low intensity uses facilities; either outdoors or buildings In until developed as a campus—like setting In a park setting. under a master plan. ® mon GENERAL PLAN DESIGNATIONS ASSOCIATES Ernie Ball Guitars, Inc. Annexation Area 9608191genplan.pm5 1214/96 3, n on ASSOCIATES PROJECT STATEMENT Ernie Ball Inc.Annexation Project Background Ernie Ball Music Man is recognized as a world leading manufacturer of high- quality professional electric basses and guitars. Ernie Ball Music Man products are presently distributed to 5,000 domestic sales locations and internationally in 54 countries. Demand for Ernie Ball instruments at present greatly exceeds their ability to deliver products to their customers with the present facilities and infrastructure. Based on these circumstances,Ernie Ball Guitars,Inc. has planned an expansion and annexation of their San Luis Obispo County manufacturing facilities. Proposed Annexation This application requests annexation of 13.46 acres of property on the south side of Suburban Road to the City of San Luis Obispo. Annexation is desired so that full City services can be provided for the industrial development. The area to be annexed includes an existing 54,900 s.f. industrial manufacturing building and a 40,950 s.f. manufacturing building addition which is curently being processed in the County. Approximately 6 acres of the site is undeveloped. Both buildings will be used for all phases of guitar manufacturing. Activities include sanding and buffing;preparation,paint, and finishing; and assembly, electronics and testing. Related activities include administration, marketing, research and development, shipping/receiving, and storage. Proposed Zoning The current County zoning is Industrial. The applicant is requesting City zoning of C-S (Service Commercial) and a General Plan designation of Services and Manufacturing. Utilites The site is presently served with utility company power,telephone and natural gas. The existing buildings are served by an on-site well. The well provides a stable 30gpm at 65 psi, a quantity that is adequate to serve both the needs of the existing and new facility. The applicant proposes to request city sewer services and may or may not request city water services. Cannan A�W" 361 Pacific Street San Luis Ohispi.CA=01 8051544.7405 2915/544-3863 Fax S U B U R B A N R 0 A D i SCALE: 1'=120' 1 EXISTING i BUILDING L� 1 i i E � C, eM NEW BUILDING (to be constructed prior to annexation) i � o � 1 O�nn_ol'1 SITE PLAN ASSOCIATES Ernie Ball Guitars,Inc. Annexation Area 96081ftiteplan.pm5 12!4196 d JAN-30-1997 10:43 CANNON ASSOCIATES 805 544 3863 F.02/02 EMPLOYMENT DATA CURRENT INFORMATION Number of Employees Full-Time Part-Time Total Ernie Ball 90 71 161 Paladar 9 6 0 69230 9 Total 99 131 2 3 0 Shifts Office, sales, and shipping employees work a five day week. Most manufacturing employees work a four day week Monday thru Thursday. Some manufacturing employees work a four day week Tuesday thru Friday. Part-time employees work 18 hours per week. Part time employees are divided between three shifts as follows: Shift Hours No. of Employees Morning 7:00 11:30 50 Afternoon 12:30 - 5:00 50 Night 6-00 10.30 31 131 part-time employees at 18 hours per week is equal to 58.95 full-time employees. Current part-time and full-time employment is equal to 159 full-time equivalents. Maximum on Site at One Time Tuesday thru Thursday 12:30 pm to 5:00 pm ,VA Full-Time Pari-Time Total 99 50 149 i EMPLOYMENT DATA - PROJECTED INFORMATION During the next three to five years, maximum anticipated employment is as follows. Number of Employees Full-Time Part-Time Total Current 99 131 230 To Be Added 36 70 105 Total 134 201 335 201 part-time employees is equal to 90.45 full-time employees. Maximum projected employment is equal to 224.50 full-time equivalents. Maximum on Site at One Time Tuesday thru Thursday 12:30 pm to 5:00 pm Full-Time Part-Time Total 134 73 207 Arcbirecsure pamu z o tyrafi� 1401 Higaaa Street C__Y---.nL:....- P'd oadnl TOTAL P.02 U d Z O Lu U Lo O O O M Z N O � N Z ILUW O vi U o; o0 0 0 LO 0 Z v t\ N N r o Q Q U U > � -a Z o U Q W 0 N N Lo M N N Q Z � v COuu O O Q D J Z Q LU J C NO ZO LQ O: N �t E Zu.j Q O f\ N Lo Lo -O w O N C. LJJ O r v) Ce O Z Z O O O O O O N Q W O Q * N 00 O — LO LO "0 W Z U W Lo v "It00 N O M U O Q rY Q C C 0 > Q C W p0 p^ M 0 0 0 C cn CLQ pp. N LO Nr � � E � � v U 0 v v UO a O u N o v 2 > U LU m Z N Zw U E 0 U � O D U U V° o V) /-yam Memorandum November 19, 1996 To: Ron Munds From: Tim Girvin Subject: Required Water Allocations for Annexed Properties There are currently five projects that would require a portion of the 300 acre feet of annexed water that is available. TK Commercial Park This project has received final approval and the developer has retrofit.06 acre feet of water credits which is required for the self storage complex. The project will need an additional 6.13 acre feet of water for the Food 4 Less store and 9 acre feet for 150,000 square feet of service commercial development (15.13 acre feet total). Goldenrod Annexation This area has been annexed into the City,but developers have not submitted or received approval for the final map of the development. There are 44 SFR's which will require 13.2 acre feet of water. The developer will be ready to build in 1997. El Capitan Annexation Thirteen SFR's and an approximate 3,000 square foot commercial building will require 4.1 acre feet of water credits. The developer still needs final approval of the tentative map and will need to receive an official CK from council (Final Protest), but this one is streamlining and may be ready to build in 1997 also. Margarita Area The planner in charge of this project indicated that there would need to be a combination of ground water,retrofit water,and water reuse in order for this project to be completed. There is a variety of water use in the specific plan which includes commercial, industrial and residential. I will only list the residential demand because it is hard to speculate how much ground water and water reuse will influence the other uses. A total of 1,042 residences will require 250.74 acre feet of water. This includes irrigation use which may be reduced if recycled water is used. Du Vaul Annexation a total of 444 residences will require 100.2 acre feet of water for the development. This does not include the park use and is not factored down in the event recycled water is used. The grand total of retrofit water needed based on these preliminary calculations is 37337 acre feet of water to meet the demands of the identified annexations. ��►►���►�IIIlllllilllllllllllllll������h�►►►►Ilii �I Cly Of S�l'1 x,115 OBISPO Y 990 Palm Street, San Luis Obispo, CA 93401-3249 November 5, 1996 Sterling Ball Ernie Ball Company P.O. Box 4117 San Luis Obispo, CA 93403 Dear Sterling, Thank you for your letter expressing interests and concerns regarding our current dialog and the possible annexation of your property to the City. It was read with interest by a number of people on staff and the Council, and was very helpful in providing us with a beneficial business perspective. We are committed to retaining existing, and attracting new, businesses such as your own that the community can relate to with pride. However, these efforts must occur within the context of adopted city plans, goals and policies, and those components dictate the courses of action and degree of flexibility that are available to us. In your letter you noted that the dollar cost of the annexation process is of critical importance to your decision to stay unincorporated, annex to the City, or perhaps even to leave the area entirely. And, without doubt this same concern will be a major consideration for most businesses who are contemplating the annexation decision. As a consequence, annexation costs have been thoroughly reviewed by City staff to assure that they are applied equitably, and held to the minimum amount possible while still meeting our policy and infrastructure requirements. This effort is especially important in the present case, because in addition to providing you with information for formulating your own course of action, a precedent will be established for dealing with similar future requests. When we met with you and your team on October 15th, we promised to provide our best estimates to you in three weeks, by November 5. Following are the various component cost areas relating to your potential annexation, and the dollar amounts associated with them, based on your current 1.74 acre construction proposal. Much of the first category, Impact Fees, is a reiteration of material provided to you on September 20, but it is included here to provide in one place an inclusive list of your potential costs. ft I The City of San Luis Obispo is committed to include the disabled in all of its services, programs and activities. /—� IMPACT FEES Utilities Water: One time charges: Main service line extension participation @ $25.00 per frontage foot $ 8,100.00 Impact Fee, 1" meter $123456.00 Wastewater: One -time charges: Sewer line extension participation @ $25.00 per frontage foot $ 8,100.00 Impact Fee, 1" water meter $ 5,131.00 Lift station fee @ $3.50 per employee, assuming 300 employees $ 1,050.00 On-going costs: Fire protection water charge per month, assuming continued use of on-site well for potable water$22.40 Approximate sewer service charges per two month billing cycle- actual amount determined by amount of water used $275.00 Transportation Impact Fee : Previously based upon an estimated 30,000 square foot building, this number is now higher reflecting use of the actual proposed building size of 40,950 30 p!10,pp square feet @ $0.733 per square foot c-33:669.00- TOTAL "Sys PROCESSING FEES General Plan Amendment $ 1,780.00 Annexation and Prezoning $ 2,590.00 Environmental Review $ 613.00 (building permitting, and construction inspection, for the new building are presumed to occur under County Jurisdiction, thus Architectural Review, Plan Check and Building Permit fees included in the previous estimate would not be collected, and have been eliminated from this estimate) TOTAL $ 4,983.00 ��6 AREA WIDE IMPACT FEE This fee is not currently in place, but is based on a proposal staff plans to present to the City Council in January or February, 1997, as part of an overall interim Airport Area annexation strategy. This fee is our best estimate of the cost apportioned to your new building (1.74 acre site) for area-wide planning and construction of infrastructure within the Airport Annexation Area(water and sewer system improvements, circulation system improvements, storm drain system improvements, and specific plan preparation). Under the concept we are considering at this time, no fees would be due for the existing structure. Similar fees on a per acre basis will be due for the adjacent undeveloped parcel (6.17 acres), but would not be due until development is pursued for that parcel. Given that construction of this infrastructure is not absolutely certain at the present time, we are proposing an option under which initial costs could be deferred by utilizing a letter of credit for the new building to guarantee payment when required. If that need does not arise within five years of annexation, the letter of credit would be canceled. It is also possible that these costs instead may be recovered through a future assessment district. Accordingly, if your annexation proceeds, we would also request that you agree to not protest the formation of any such district. $26,670.00 OPEN SPACE FEE This fee is the apportioned cost for acquisition of an open space buffer to the south of the Airport Area as required but the General Plan. A total fee of $20,000.00 is anticipated, with only the portion associated with construction of the presently proposed building due at annexation. The remainder would be collectable only if and when the rest of the property was developed. $ 42350.00 COST SUMMARY Fees Due Upon Annexation/Near-Term Development .OD Impact Fees 5@6 — Processing Fees $ 47983.00 Open Space Fee $ 4.350.00 Total '$ 5798MA --- %1%.Cb Deferred Fee Due Upon Area-Wide Annexation $ 26,670.00 Tl� I hope the above provides sufficient detail to allow you to make an informed decision on pursuing an annexation application. We feel that your immediate costs would be held to a level which is very competitive with the anticipated cost of a new septic system, and the deferred costs are more than justified by the increased development potential and city services which would accrue with annexation. It is important to stress that this fee and payment strategy are based on an initial interim funding concept recently developed by City staff. City Council approval of this fee schedule is required before it can be considered final, since it is based in part on on funding approaches that are not yet in place. Implementation will necessitate a formal written agreement between yourself and the City to insure that all parties are fully aware of, and in agreement with, the cost allocations. Please let me know if you need clarification, or additional information. I think a meeting in the near future to go over the details of our proposal would be helpful, and I'm working with Cannon Associates to arrange one. Si re Arnold B. Jonas Community Devel ent Director c: Mayor and City Council John Dunn, City Administrative Officer Ken Hampian, Assistant City Administrative Officer William Statler, Finance Director Michael McCluskey, Public Works Director John Moss, Utilities Director Jane McVey, Economic Development Manager B:B.LLLFEE.LTR /-41 PROJECT REVIEW January 10, 1997 To: Whitney Mcllvaine, Associate Planner From: Mike Bertaccini,Engineering Assistant Subject. 151 Suburban Road, GP, ER,ANNX 154-96, Ernie Ball Property ANNEXATION CONDITIONS 1. There are no conditions Public Works or Utilities Depts. Conditions related to the annexation of the subject property. 2. All existing structures currently served by a sewer septic system may remain on said system until the septic system fails. .At that time, the sewer system will be required to be abandoned and existing structures connected to the City's sewer system. Applicable sewer impact fees will be required to be paid at that time. DEVELOPMENT CONDITIONS 1. New structures will be required to connect to the City's new sewer main (currently under construction). Water and sewer impact fees and sewer lift station fees(Howard-Johnson LS) are required to be paid prior to issuance of building permits. New structures will be required to develop a water allocation. 2. Any connection to the new water and/or sewer main in Suburban Road (installed with tract 2202) TK Business Park) will required reimbursement. (approximate reimbursement rate of $25/frontage foot each) 3. Frontage improvements currently exist across the developed parcel. Per current ADA requirements, modification of the existing driveway ramps may be required to accommodate the maximum allowable cross-slope as a condition of any new building permit. 4. Traffic impact fees will be required to be paid in conjunction with any new structure(the 151 Suburban Road, GP, ER, ANNX 154-96, Ernie Ball Property Page 2 of 2 current rate is $733/1000 sq.fl:.). 5. This property is located within an undetermined"A" flood zone per the County's Flood Insurance Rate Map (FIRM). Prior to issuance of a building permit for the new structure, a hydraulic analysis or satisfactory evidence is needed to determine the elevation of the 100-yr storm water surface elevation. The building pad of the new structure must be raised at least one foot above the 100-yr storm water surface elevation in accordance with the City's Flood Damage Prevention Regulations. File: Suburban 151 p mnx 70 N to G r 7 rr. 'A 7 S trot 'aC IpD n A p P) V H I a ,u�0y� m (D W W 'G ri L+1 r4 PO ° r �q70� m m r C9 w, m m w rt °W y PI ra 3 ° H w m ° '+J r 3 W R 3 W H t�++ t' W r• a m 7 a O m `' a O m w m a r- H W M m bai mH � cr n oc A) mn a 3 a m o "om ma < n 1�^ bon �' ew o xa m 7 P p r. 3 �' o m m r m E Kroft in ft ct 3 rrtm mP )- 3 H ~ (D rt a•� (D ow w ° Cr -4 m 0 (D a m t1r a `tp 17 m nW m ct W 7 mxn m � m ° ° cm r at. ON o ro W °oc ro i°ro CD o wmmm °� a " 3 (D m ct n m w a r p o r rWq a °, m m m m W o a m H G G m m a o rt m 3 p' y p. m rat ph H rt °vW on c rat c Xyx ;° 3 ° m •J toF• X H W Enro w a m a m a M r7t a mro o ym m t pap o trO G AU N, m rt a � m r H t m r m Ph t°t E r w o to rt 3 o mm � to P) >e e ^ N O+ n H m Ln H r m P) b a o a o o A. po o m n v a N O m E m 3 a n p a m m m m rat ft W W m LT m rt F-• G a m O m r<ar ;• to rrt M ~ ro m C a m H m m o H a • o m m ro o HK r' tt rt v° m a w r. ,* 10m a E m rt, t ta- w r rrr H 11 m rt m r°t r (DD N S m ciK ro m m mar a n U a n .. t+ < m* so m , a r rt re t� w a N m ° G m H m .g m m rt ? w rt Hm le W ro ct m o to V w a H o o m m m Hro o tom 10 ct b< n m a t°n ° n1 rt W m tai m a m m o m r rptna n o m m a m a ft m m w� m m F- rt w O zQ M o w r4D to iv r C � L< H m 3 m rOD r m rqj W W M y 0 0 D m w rt m o n ° (D L-4 m m to 0� n to r•• c m r m rt r P m tr to rr pr O r m K a rr• T rr1� w a P.- 10Sn N C 7 m Or K r rr w c n M' m rOr m m M o arra sm =° m = m a W W to m N hf r • m m r rt w me m r m E w m n m w wrt W p 1., 0 M K m 0 O .'7 M f(D B m a a O a w n n rOr r rm- m o m tr 0 rt r :3 W IS w 7 rt m�rmr < m K K u. C Or POI h N O m W W ]O] m n lC r w 3 rt w P)r rw mro °n IS m m In Lt rt W mm wggr� re m [Y 9 m m W Ph 0 rt O O m W a n r ° o a In nr wrrraw 7 7 m a u ft x o w`g re 7- 7 err v It r m w n 3 m x o m ro "0. 0 rt m m w m O c O w rt 91 CL m waw a IN w n a m m 0 7 w S m rr a v a w m •C m y C r a W r lu ^ C r O m•C w r m w D W r ro CL%° L o m r rOt R W w to owa ►- IM tr .4 o rr r5' m a m m m r o -- w O ct 4 PH o m 7 rt Environmental Determination No. 96-429 Date: November 15, 1996 SPECIAL ENVIRONMENTAL CONSIDERATIONS FOR THE ERNIE BALL, INC. DEVELOPMENT PLAN; (D960089D) The applicant is requesting to expand an existing 55,000 square foot industrial complex by adding a 40,950 square foot industrial building on a 7.29 acre site. The project site is within the Industrial land use category and is located at 151 Suburban Road, approximately 1,000 feet east of South Higuera St., south of the City of San Luis Obispo. During the initial study process, several issues were identified as having potentially significant environmental effects. It has been determined by the Environmental Coordinator that these issues can be mitigated, and the applicant, where applicable, has agreed to mitigate each to a level of insignificance. Specific mitigation measures were developed by the Environmental Coordinator, and the applicant has agreed to incorporate each of those measures into the project. The following is a brief discussion of the significant issues and how each will be mitigated to a level of insignificance. Agricultural Impacts The land immediately to the south of the subject site is in the Agriculture land use category, and has been used for growing vegetable crops and dryland grain hay. In addition, there is a substantial amount of agricultural land continuing to the south and southwest. This agricultural land is at the downstream end of most of the airport area development, and therefore receives most of the stormwater runoff. The owner of agricultural land to the south of the site has experienced storm runoff and soil saturation problems, possibly as a result of upstream development. Additional development in the watershed was believed to have the potential to exacerbate these problems. There was also potential that the project could result in direct incompatibility impacts. As a result, the project was referred to the County Department of Agriculture for review and comment. The Agriculture Department has reviewed several industrial type proposals in the airport area over the past several years, and is very familiar with these potential effects. The Department's review resulted in a determination that the project would not result in significant impacts to agriculture. The Agriculture Department determined that there would be no significant land use incompatibility impacts with the proposal and the agricultural land located south of the site due to sufficient distance (225 feet) between the uses. With regard to the storm water and saturation issues, the Department also found that the project would not cause significant impacts if proper management of the storm water detention basin occurs on an ongoing basis. The Department Agriculture states that other than the County Engineering Departments off site release and basin operational requirements, no other mitigation measures are required. The applicant, through the attached developer's statement, has agreed to the basin operational requirements. The detention volume requirements to contain runoff up to a fifty-year storm are required by ordinance. �-�02 Special Environmental considerations Ernie Ball, Inc. Development Plan; ED96-429 November 15, 1995 Page 2 Air Qualit Given the potential for dust generated during grading, and the number of employees and additional vehicle trips which would be generated by this project, the project was referred to the Air Pollution Control District. District staff determined that the neither the construction nor operational phases of the project would exceed the District's significance thresholds. Therefore, no mitigation measures are required. Water Quality The project site is located in an area which presents challenges for the disposal of wastewater. Soils are typically characterized by very slow percolation rates, poor drainage, and shallow depth to groundwater. In addition, the Regional Water Quality Control Board (RWQCB), the agency which administers the Water Quality Control Plan ("basin plan") regulates the discharge of wastewater to limit the concentration of nitrates in the groundwater. At certain concentrations, nitrates in the groundwater are hazardous to human health. In order to address these concerns the project was reviewed by the RWQCB & the County Environmental Health Division. The applicant's engineer provided substantial data on septic system design, groundwater depth, and concentration of nitrates in existing wastewater effluent. This information was reviewed thoroughly by staff of the Department of Planning & Building, Environmental Health, and the RWQCB. Environmental Health developed several conditions to insure that the proposed expansion would comply with the regulations overseen by that agency. These were modified into the format of conditions, and appear in the attached developers statement, which has been signed by the applicant. Based upon a comprehensive review of the information developed by the applicant RWQCB staff determined that the project would not significantly degrade groundwater quality, and that they would not require a permit. Based on the above discussion, the potential on-site and cumulative impacts associated with the request are not considered significant. Therefore, a Negative Declaration is appropriate under the California Environmental Quality Act. wp51Xspecia1%em bail.spc Ernie Ball (D960089D) RW 30 December 120 1996 EXHIBIT B D960089D - ERNIE BALL CONDITIONS OF APPROVAL Approved Use 1. This approval authorizes the construction of a 40,950 square foot industrial building as an expansion of an existing industrial complex located at 151 Suburban Road. 2. The use authorized is for expansion of the Ernie Ball guitar manufacturing (small scale manufacturing) . No on-site retail sales are authorized. Site Development 3. Site development shall be consistent with the approved site plan, floor plan and color board for the project. 4. Building architecture shall be consistent with the approved architectural elevations. 5. Project utilities should be planned and designed to accommodate easy conversion and connection to City water and wastewater systems upon annexation. 6. At the time of application for construction permits, the applicant shall provide an exterior lighting proposal. This shall include the height, location, and intensity of all exterior lighting. Site lighting, where provided should be shielded to prevent casting glare upwards or across property lines. 7. The fencing requirements of Section 22.04.190 are modified to not require a solid fence along the rear property line. a. Install concrete curb, gutter and sidewalk and street paveout on the street frontage of the site and the adjacent property under common ownership under an encroachment permit issued by County Engineering Department unless waived through the curb, gutter, sidewalk waiver request on file. If required, plans for the required improvements shall be prepared by a registered civil engineer and submitted for review and approval under an inspection and checking agreemnet wit the county prior to issuance of a building permit. Employee Limitations/Waste water Disposal 9. The total number of employees shall not exceed 224.5 full-time equivalencies unless additional wastewater disposal capability is obtained by the applicant and found to be acceptable by the �7 Ernie Ball (D960089D) RW 21 December 12, 1996 Department of Planning and Building in consultation with Environmental Health and Regional Water Quality Control Board. Prior to exceeding 224.5 employes, the applicant shall receive written verification from Bnvironmental Health that the additional wastewater disposal service is capable of handling the proposed increase. If waste water discharge exceeds 2,500 gallons per day, sewage disposal shall be in accordance with the waster discharge requirements issued by the Regional Water Quality Control Board. 10. At the time of application for construction permits, the applicant shall demonstrate that the proposed on-site wastewater disposal system has been designed by a registered civil engineer, competent in sanitary engineering to meet all applicable regulatory codes and ordinances. 11. Prior to occupancy or final inspection, whichever comes first, the applicant shall demonstrate the proposed on-site wastewater disposal system installation has been certified by a registered civil engineer competent in sanitary engineering. The system shall be installed: a) based on the daily peak flow estimate for the proposed use, b) to meet all applicable regulatory codes and ordinances, and c) installed and operated based on the daily peak flow estimate for the proposed use. 12. At the time of the application for construction permits, the applicant shall demonstrate that the wastewater disposal system has been designed to install 200% of the minim required system, with an additional 100% replacement area reserved via recordation on the property deed. Each 100% of the 200% installed system shall be capable of handling 100% of projected wastewater flows. 13. At the time of application for construction permits, the applicant shall demonstrate that the proposed on-site wastewater disposal system has been designed based on the highest known groundwater level being 10.5 feet from ground surface (per Buena Engineering, inc, Soils Report, 1982) . Prior to the installation of the system, any indication of groundwater levels' closer than 10.5 feet from ground surface would require further review by the county. 14. At the time of application for construction permits, the applicant shall demonstrate that the proposed on-site wastewater, disposal system will maintain minimum distancing requirements to both on-and off-site water wells. 15. During operation of the facility, the applicant shall demonstrate on an on-going basis (through the submittal of annual reports to the Division of Environmental Health) that the total nitrogen content of the wastewater discharge shall Ernie Ball (D960089D) RXft 13 December 12, 1996 23. Prior to final building inspection, landscaping in accordance with the approved landscape plan shall be installed or bonded for. If bonded for, landscaping shall be installed within sixty (60) days of the establishment of the use or final building inspection and thereafter maintained in a viable condition on a continuing basis. Fire Protection 24. Prior to issuance of building permits, the applicant shall obtain a fire safety clearance. letter from the California Department of Forestry (CDF/County Fire Department) establishing fire safety requirements. CDF will coordinate with the City of San Luis Obispo to ensure that appropriate improvements exist should the property be annexed. 25. Prior to finaling the building permits, applicant shall receive clearance from CDF that the projects meet the fire safety plan required in .Condition 24. Flood Hazard 26. A hydraulic analysis should be done to determine the elevation of the 100-year storm water surface elevation, and the finish floor of the new structure be raised to at least one foot above the 100-year storm high--water elevation. 27. The project shall comply with the Flood Hazard Construction Standards as required by Land Use Ordinance Section 22.07. 066. Noise 28. For offices ancillary to the primary use, soundproofing shall be added to reduce interior noise to 45 Leq, dB or less. Airport Land Use Commission Recommended Conditions 29. No electro-magnetic transmission which would interfere with operation of aircraft. 30. Grant an avigation easement (or update to existing avigation easement) to the county of San Luis Obispo in a form acceptable to the County Department of Planning and Building and County Counsel. 31. Soundproofing where appropriate to reduce noise to acceptable level in accordance with the county Noise Element. 32. Non-reflective materials to be used in buildings and signed where reflection would cause a flying hazard. Ernie Ball (D960089D) Rxp :14 December . 12, 1996 33. All bulk storage of volatile or flammable liquid to be underground. Sicm Review 34. Prior to issuance of sign construction permits, the Development Review Section shall review and approve any proposed signs. Carpool Evaluation 35. The applicant shall request an evaluation of carpooling opportunities from the Rideshare Program through SLO Regional Transit Authority. /s� Other Considerations: 1. Relationship to Area Plan update FAR standards were removed from the update. 2. Annexation to City Under consideration , How to address the public facilities fee payment New Condition: ad avle l o w Aa ri h J 36. Prior to issuance of the building permits for the project, the public facilities fees must be paid. If the project site is annexed to the City of San Luis Obispo within 18 months, these fees will be refunded (less the administrative fee) to the applicant to be allocated to t city public facility feekf r coos f8 , 1. 1-�8" MEETING AGENDA DATE 12 ITEM # March 12, 1997 Planning Commission Draft Minutes Ernie Ball MAX 1 7 199/ CITY CLERK SAN LUIS OBISPO,CA COUNCIL CDfd D DIR ICAO ❑ FIN DIR R(ACAO ❑ FIRE CHIEF GYAWMEY ❑ PW DIR I(CLERKIORIG ❑ POLICE CHF ❑ MGMTTEAM ❑ REC DIR R=FIOUTIL DIR ❑ PERS DIR Draft Minutes Planning Commission March 12, 1997 Page 20 REFRAIN: Commissioner Senn Chairman Karleskint would be inte ested in an ad hoc committee to make a presentation to the Council. The problems off site have to be dealt with. Commissioners Jeffrey and Kourakis delightfully agreed to serve on an\ad hoc committee. Commissioner Kourakis requested copies of to HRC letter to Council. The Commission agreed to continue their h ring past 11:00 p.m. 2. 151 Suburban Road: R/ER/ANNX 154-96: Request for: 1) annexation of roughly 13 acres of developed and undeveloped property into the City of San Luis Obispo; 2) General Plan map amendment to exclude the property for the Airport Specific Planning Area or text amendment allowing for its annexation prior to adoption of a specific plan; 3) and prezoning the property to Manufacturing (M). Review will also include the environmental impacts of the proposed annexation, General Plan amendment, and prezoning; Ernie Ball, Inc., applicant. Commissioner Senn and Chairman Karleskint refrained from participation due to potential conflicts of interest. Commissioner Whittlesey was designated as acting chairperson. Associate Planner McIlvaine presented the staff report and recommended the Commission recommend to the City Council (1) the adoption of a resolution concurring with the mitigated negative declaration of environmental impact and amending the General Plan Land Use Element text to enable annexation prior to completion of an Airport Area Specific Plan, (2) prezoning the annexation area Manufacturing (lam, and (3) adoption of a resolution recommending that LAFCo approve the annexation. Draft Minutes Planning Commission March 12, 1997 Page 21 Director Jonas recommended stn-king "by the year 1995" from LU 7.3 of Exhibit A. Commissioner Kourakis stated the Council has set aside 300 acre feet of water supply for annexation areas, yet the list of possible water usage in expansion areas is way over 300 acre feet. Associate Planner McIlvaine stated some of the projects are closer to approval and would actually be utilizing water sooner. Other projects are probably years away from building permit issuance. Utilities Director Moss stated that this annexation will initially be using its own well water and is a low-water consumer. Water used on site is mostly for employees. Mr. Moss went over a listing of water supply projects that the City is currently pursuing, the estimated yields, and estimated completion dates. Mr. Moss added the EIR for the water reuse project will be before Council in two weeks for final certification. This project would bring an additional 1,200 acre feet. Commissioner Ewan asked ifbthe proposed project will be able to hook up their fire sprinkler system to the City water mains without setting up the rest of the water use. Mr. Moss replied yes. There are mechanisms which would allow them to hook up for fire protection only. This demand has no affect on our safe annual yield. Commissioner Kourakis asked where water demand is relative to supply in the City. Mr. Moss replied approximately a surplus of 600 acre feet, based on the planning figures. Commissioner Kourakis asked if the water reuse will have a limited use. Mr. Moss stated the water reuse will be available for almost any use other than drinking water and use within domestic premises. It's primary use will be for irrigation. Commissioner Ewan asked if there are plans for the reuse water to be used to replace city water. Mr. Moss replied yes. Phase 1 of the project will deliver the water to school grounds and city parks. The estimated demand initially is about 400 acre ft. There is a potential for another 300 acre ft. exchange with Cal Poly for Whale Rock water. The remaining water use for reclaim will be in development of annexation areas. Draft Minutes Planning Commission March 12, 1997 Page 22 PUBLIC COMMENT: Andrew Merriam, Cannon and Associates, stated the Ernie Ball company currently exists and utilizes well water and the same will be true for the addition. The will be no additional water demand. Mr. Merriam stated when they originally reviewed the process, Sterling Ball identified they will be wanting to do retail sales out of their operation. This is not allowed in the M Zone, so they applied for the C-S Zone in the original application. As they got into evaluating exactly what the retail sales meant, it turned out this is a large warehouse and showroom-type of facility for retail sales via the world wide web. This issue has diminished in significance and as long as it's recognized by the Planning Dept. that this use would be allowed because it really functions like a wholesale warehouse, they have no objection to the M Zone requested by staff and they'll withdraw the C-S application. Sterling Ball, Vice President of Ernie Ball, asked for the employees to raise their hand in support. They moved here in 1979 to manufacture a product. In 1984 they moved the rest of their facilities here. They currently occupy 48,000 s.f. They distribute their products to 6,200 music stores in America and to 62 foreign countries. The urgency of the application is that they are currently back ordered approximately 14 months on their instruments. It's gotten to a point where it's critical because it's basically allowing the competition to copy their products and get the sales. They began this process with the City last August. They spend in excess of$9 million in the community between payroll and purchases. It's unique because they're bringing in dollars to San Luis Obispo. They contribute to 25 charities. They've won environmental, product quality, and design awards. He urged quick annexation. Don McCalin, personnel director, Ernie Ball, is a 35 year city resident. He was lucky enough to be able to attend Cal Poly and find a job here. His children attend the same elementary school he attended 30 years ago. The reason he is able to stay here, make a good living and own a house is because of the Ernie Ball Co. It is a company that provides head-of-household jobs, pays medical, dental, and life insurancefor employees and families without any costs to the employees. They have paid holidays and vacations and seniority bonuses and a good benefits package. He's been there 12 years and they've never had to lay off a single employee for the lack of work. This company provides good, stable, long-term jobs. They will be adding a significant number of jobs within the next 3- 5 years. The money this company brings in is from outside the area. Because of the company's strong track record of environmental issues, additional strength to the local economy, and because of the duality and number of jobs provided, this annexation would be a positive asset to the city. He encourages the support of this project. Albert Wilton'stated he's been with the company since 1980. He started out in Newport Beach and when the company moved in '84, they asked him if he wanted to come along. 4 Draft Minutes R Planning Commission March 12, 1997 Page 23 He started out in the shipping dept. and now he's in charge of export sales, accounts payable, and inventory. This is a very nice company to work for. They award you for the work that you're doing and this is a great area to live in. He would love to have this annexed into the city. Seeing no further speakers come forward, the public comment session was closed. COMMISSIONERS' COMMENTS: Commissioner-Ewan asked if a factory outlet would be possible. Director Jonas stated it would be possible to do. It would be considered an accessory use such as a small operation perhaps to clear outdated inventory, returns, or repairs, but not to have a regular retail operation or store where the intent would be to attract a large volume of retail customers to the area. This could be a use similar to a bakery thrift store. Commissioner Ready moved to adopt the findings set forth by staff on Pages 5 and 6 of the staff report and recommend to the City Council as set forth as A, B, and C on Page 1, under CAO Recommendation, with one amendment to LU 7.3, Exhibit A, striking the word, "by the year 1995." The motion was seconded by Commissioner Kourakis. Commissioner Ewan added he heard on the radio that the City doesn't appreciate businesses like Ernie Ball. He feels the city appreciates businesses like this very much. AYES: Commissioners Ready, Kourakis, Ewan, Whittlesey, and Jeffrey NOES: None ABSTAIN: None REFRAIN: Commissioner Senn and Chairman Karleskint The motion passed. 3. 180 and 190 Tank Farm Road: (GP/R/ER/ANNX 1-97: Request for: 1) annexation, General Plan map amendment to exclude the property for the Airport Specific Planning Area; or 2) text amendment to allow for its annexation prior to adoption of a specific plan; and 3) prezone the property to Seryice Commercial (C-S). Review will also include the environmental impacts of the propos 'd annexation, General Plan amendment, and zone reclassification; Spice Hunter, applicant. cETING AGENDA/'` DATE 7 ITEM #; 47 MEMORANDUM DATE: March 31, 1997 _ TO: City Council FROM: John Dunn, City Administrative O SUBJECT: Pre-annexation Agreements for the Ball and Spice Hunter Annexations Attached are revised pre-annexation agreements relative to the Ball (Public Hearing #1) and Spice Hunter (Public Hearing #2) annexations. Changes are the result of clarifications needed by both the property owners and the City and are found in Section 2. OTCOUNCIL IeCDJ[SIA 01'¢AO E(FIN DIR "CAO VFIRE CHIEF E],ATTOMEY ID/ PW I I O CLERKIORIG L'POUCECHF ❑ MGMTTEAM ❑ REC DIR nit S I I ❑ C READ FILE VLITIL DIR Zi_ ❑ PERS MCI CITY CLERK - C St,�l LU130ai5?0,CA Al NaiaK RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: City of San Luis Obispo Community Development Department 990 Palm Street San Luis Obispo, CA 93401-3249 APN: 076-352-038 076-352-039 PRE-ANNEXATION AGREEMENT BY AND BETWEEN THE CITY OF SAN LUIS OBISPO AND ERNIE BALL INC. This annexation agreement is made and entered into this day of , 1997, by and between the City of San Luis Obispo, a chartered municipal corporation, (hereinafter referred to as "CITY") whose address is 990 Palm Street, San Luis Obispo, California 93401; and Ernie Ball, Inc. 151 Suburban Road San Luis Obispo, California (hereinafter referred to as "OWNER"), pursuant to the authority of the City Charter and Section 56000 et. Seq. of the California Government Code. CITY and OWNER shall hereinafter be referred to collectively as `PARTIES." RECITALS WHEREAS, Ernie Ball Inc. is the owner in fee of certain real property in the County of San Luis Obispo, commonly known as 151 Suburban Road, APN # 076-352-038, and 039, further described in the attached Exhibit A and referred to herein as the"subject property"; and WHEREAS,the subject property is proposed for annexation to the City of San Luis Obispo (City File No. 154-96): and WHEREAS, to provide for the City's orderly growth and development, consistent with the General Plan, the PARTIES anticipate that the subject property will be annexed to the City pursuant to terms and procedures of the California Government Code 56000 et seq.; NOW THEREFORE, in consideration of the mutual promises, covenants and agreements stated herein,PARTIES agree as follows: 1. URBAN SERVICES. Upon annexation the.property shall be entitled to the full range of City services, including but not limited to water and sewer services, police and fire protection, and general government services, some of which are described below in more detail: Water Service. CITY agrees to provide water service as available for fire fighting and domestic purposes to the subject property upon request of OWNER, subject to the same laws, rules, regulations, and fees applicable to other new users in the City under similar circumstances, Pre-annexation Agreement:Ernie Ball Page 2 including but not limited to retrofit requirements. Any connection to the City water main in Suburban Road will require reimbursement. Use of existing on-site ground water or other sources for potable or non-potable uses may continue, provided they continue to meet County Health Department standards. In the event of abandonment or failure of well(s), OWNER shall comply with applicable State and County regulations regarding well abandonment. Non-potable water may be used for landscape irrigation. Sewer Service. City agrees to provide sanitary sewer service, as available,to the subject property upon request of the OWNER subject to the same laws, rules, regulations, and fees applicable to other new users in the City under similar circumstances. Use of existing on-site septic waste disposal systems, which were legally installed under permit from the County may continue, provided they meet County standards in effect at the time of annexation. If such systems are abandoned or fail to meet County standards, connection to the City sewer system will be required. Fire Protection. City agrees to provide fire protection service, as available, to the subject property upon request of the OWNER subject to the same laws, rules, regulations, and fees applicable to other new users in the City under similar circumstances. Development on the subject property must connect its fire suppression system to the water main in Suburban Road and will be charged a monthly fire protection service fee. Transportation Services. New construction on the subject property conducted under the jurisdiction of the County of San Luis Obispo (Building Permit No. ) is subject to City traffic impact fees payable upon completion of the annexation. 2. SPECIFIC PLAN AND AREAWIDE PLANNING AND INFRASTRUCTURE FEES. Airport Area Specific Plan and Infrastructure Fee. This $15,237.00 per acre fee (interim fee) is the estimated apportioned cost of area-wide planning and construction of infrastructure within the Airport Annexation Area (including specific plan preparation, water and sewer system improvements, circulation system improvements, and storm drain system improvements). Owner hereby agrees to contribute $26,670.00, based upon current development of 1.74 acres. Such payment shall be paid in full, or secured by a letter of credit, prior to final Council action on the Ernie Ball Annexation, and said letter of credit shall be in effect for a period not less than 5 years from the date of completion for that annexation. OWNER may elect to pay this fee at any time within the five year period and retire the letter of credit. The same per acre fee shall be applied to the undeveloped 6.17-acre lot at the time a development application is received by the City Community Development Department for said lot, unless an area-wide assessment district or other mechanism to recover costs for the services listed above is formed or adopted before a development application is received. Within the next eighteen to thirty months (but not later than five years),the City expects to adopt a finalized specific plan and infrastructure improvement fee(Finalized Fee), form an assessment district or similar funding mechanism(District), or implement some combination of these two approaches, in order to finance these planning and improvement costs. w Pre-annexation Agreement:Ernie Ball Page 3 In the event that the Interim Fee is paid in full prior to the adoption of a Finalized Fee or the formation of a District, all obligations under any such future Finalized Fee or District will have been fully satisfied by payment in full of this Interim Fee amount. If the owner chooses not to pay the Interim Fee prior to the adoption of a Finalized Fee,payment in full of the Finalized Fee amount adopted as it applies to this project will be required at that time, and the letter of credit will be retired. In the event that a District approach is adopted by the City in funding the airport area specific plan and infrastructure improvements instead of(or in combination with) a Finalized Fee, OWNER and its successors agree to support the formation of such a District. 3. OPEN SPACE. This $2,500.00 per acre fee is the apportioned cost for acquisition of an open space buffer to the south of the Airport Area as required by the General Plan. OWNER agrees to contribute $4,350.00, based upon current development of 1.74 acres, prior to final Council action on the Ernie Ball Annexation. The remainder of the fee, $15,650.00 will be collectable when the vacant portion of the Ernie Ball Annexation is developed. 4. COMPLIANCE WITH CITY STANDARDS. Once annexed the property will be subject to the same rules, regulations, laws, and fees that would be applied to other properties in the City under similar circumstances including, but not limited to Building Code, Fire Code, Zoning Regulations, environmental regulations (California Environmental Quality Act), fees, and other provisions of the Municipal Code and State laws. 5. PROPERTY IMPROVEMENTS. At the time of future development or redevelopment, it shall be the responsibility of the OWNER to install and/or pay for improvements and fees which may be required by permit, law, rule, regulation, or mitigation, unless otherwise specified in an adopted Airport Area Specific Plan and the certified environmental review document for that specific plan. 6. TERM OF AGREEMENT. The term of this agreement shall begin upon the effective date of the annexation. The agreement shall remain in effect until modified or terminated by mutual consent of the PARTIES. In the event the annexation shall not become effective for any reason whatsoever, this agreement shall terminate and have no force and effect, as if it had never been entered into by the PARTIES. 7. SUCCESSORS, HEIRS, AND ASSIGNS. This agreement shall be recorded with the County Recorder and shall bind and inure to the benefit of the heirs, assigns, and personal representatives of the PARTIES. 8. AMENDMENTS, TIME EXTENSION OR CANCELLATION. This agreement may be amended, extended, or canceled at any time by mutual consent of the PARTIES or their successors in interest. IN WITNESS WHEREOF, this agreement is executed on the date above stated at San Luis Obispo, California. Pre-annexation Agreement:Ernie Ball Page 4 ALL SIGNATURES MUST BE NOTARIZED OWNER BY: CITY OF SAN LUIS OBISPO, A Chartered Municipal Corporation BY: Mayor Allen Settle ATTEST: City-Clerk Bonnie Gawf APPROVED AS TO FORM: i orn 7ef rge RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: City of San Luis Obispo Community Development Departmdnt 990 Palm Street San Luis Obispo, CA 93401-3249 APN: 076-352-053 PRE-ANNEXATION AGREEMENT BY AND BETWEEN THE CITY OF SAN LUIS OBISPO AND SPICE HUNTER This annexation agreement is made and entered into this day of , 1997) by and between the City of San Luis Obispo, a chartered municipal corporation, (hereinafter referred to as "CITY") whose address is 990 Palm Street, San Luis Obispo, California 93401; and SH Investments, LLC., located at 254 Granada Drive, San Luis Obispo, California (hereinafter referred to as "OWNER"), pursuant to the authority of the City Charter and Section 56000, et. seq., of the California Government Code. CITY and OWNER shall hereinafter be referred to collectively as"PARTIES." RECITALS WHEREAS, SH Investments, LLC., is the owner in fee of certain real property in the County of San Luis Obispo, commonly known as 191 Tank Farm Road, APN # 076-352-053, further described in the attached Exhibit A and referred to herein as the"subject property"; and WHEREAS,the subject property is proposed for annexation to the City of San Luis Obispo (City File No: 154-96): and WHEREAS, to provide for the City's orderly growth and development, consistent with the General Plan, the PARTIES anticipate that the subject property will be annexed to the City pursuant to terms and procedures of the California Government Code 56000 et seq.; WHEREAS, the specific plan and area wide planning and infrastructure fees set.forth in Section 2 of this agreement apply only to the Spice Hunter portion of the annexation, with fees relative to the Sonic Cable property to be applied based upon the fees in effect at the time of future site development; NOW THEREFORE, in consideration of the mutual promises, covenants and agreements stated herein, PARTIES agree as follows: 1. URBAN SERVICES. Upon annexation the property shall be entitled to the full range of City services, including but not limited to water and sewer services, police and fire protection, and general government services, some of which are described below in more detail: Pre-annexation Agreement:Spice Hunter Page 2 Water Service. CITY agrees to provide water service as available for fire fighting and domestic purposes to the.subject property upon request of OWNER, subject to the same laws,rules, regulations, and fees applicable t6-other new users in the City under similar circumstances, including but not limited to retrofit requirements. Any connection to the City water main in Suburban Road will require reimbursement. Use of on-site ground water or other sources for potable or non-potable uses may continue, provided they continue to meet County Health Department standards. In the event of abandonment or failure of well(s), OWNER shall comply with applicable State and County regulations regarding well abandonment. Non-potable water may be used for landscape irrigation. Sewer Service. City agrees to provide sanitary sewer service, as available,to the subject property upon request of the OWNER subject to the same laws, rules, regulations, and fees applicable to other new users in the City under similar circumstances. Fire Protection. City agrees to provide fire protection service, as available, to the subject property upon request of the OWNER subject to the same laws, rules, regulations, and fees applicable to other new users in the City under similar circumstances. a 2. SPECIFIC PLAN AND AREAWIDE PLANNING AND INFRASTRUCTURE FEES. Airport Area Specific Plan and Infrastructure Fee. This $15,237.00 per acre fee (interim fee) is the estimated apportioned cost of area-wide planning and construction of infrastructure within the Airport Annexation Area (including specific plan preparation, water and sewer system improvements, circulation system improvements, and storm drain system improvements). Owner hereby agrees to contribute $107,293.00, based upon the size of OWNER'S lot - 7 acres. Such payment shall be paid in full, or secured by a letter of credit, prior to final Council action on the Spice Hunter/ Sonic Annexation, and said letter of credit shall be in effect for a period not less than 5 years from the date of completion for that annexation. OWNER may elect to pay this fee at any time within the five year period and retire the letter of credit. Within the next eighteen to thirty months (but not later than five years),the City expects to adopt a finalized specific plan and infrastructure improvement fee(Finalized Fee), form an assessment district or similar funding mechanism(District), or implement some combination of these two approaches, in order to finance these planning and improvement costs. In the event that the Interim Fee is paid in full prior to the adoption of a Finalized Fee or the formation of a District, all obligations under any such future Finalized Fee or District will have been fully satisfied by payment in full of this Interim Fee amount. If the owner chooses not to pay the Interim Fee prior to the adoption of a Finalized Fee,payment in full of the Finalized Fee amount adopted as it applies to this project will be required at that time, and the letter of credit will be retired. In the event that a District approach is adopted by the City in funding the airport area specific plan and infrastructure improvements instead of(or in combination with) a Finalized Fee, SH Investments and its successors agree to support the formation of such a District. Pre-annexation Agreement:by.ce Hunter Page 3 3. OPEN SPACE. This $2,500.00 per acre fee is the apportioned cost for acquisition of an open space buffer to the south of the Airport Area as required by the General Plan. OWNER agrees to contribute $17,500.00,ba'sbd upon OWNER'S lot size of 7 acres, prior to final Council action on the Spice Hunter/Sonic Annexation. 4. COMPLIANCE WITH CITY STANDARDS. Once annexed the property will be subject to the same rules, regulations, laws, and fees that would be applied to other properties in the City under similar circumstances including, but not limited to Building Code, Fire Code, Zoning Regulations, environmental regulations (California Environmental Quality Act), fees, and other provisions of the Municipal Code and State laws. 5. PROPERTY EVIPROVEMENTS. At the time of future development or redevelopment, it shall be the responsibility of the OWNER to install and/or pay for improvements and fees which maybe required by permit, law, rule, regulation, or mitigation, unless otherwise specified in an adopted Airport Area Specific Plan and the certified environmental review document for that specific plan. 6. TERM OF AGREEMENT. The term of this agreement shall begin upon the effective date of the annexation. The agreement shall remain in effect until modified or terminated by mutual consent of the PARTIES. In the event the annexation shall not become effective for any reason whatsoever, this agreement shall terminate and have no force and effect, as if it had never been entered into by the PARTIES. 7. SUCCESSORS, HEIRS, AND ASSIGNS. This agreement shall be recorded with the County Recorder and shall bind and inure to the benefit of the heirs, assigns, and personal representatives of the PARTIES. 8. AMENDMENTS, TIME EXTENSION OR CANCELLATION. This agreement may be amended, extended, or canceled at any time by mutual consent of the PARTIES or their successors in interest. IN WITNESS WHEREOF, this agreement is executed on the date above stated at San Luis Obispo, California. ALL SIGNATURES MUST BE NOTARIZED OWNER BY: CITY OF SAN LUIS OBISPO, A Chartered Municipal Corporation Pre-annexation Agreement:Spice Hunter Page 4 BY: Mayor Allen Settle ATTEST: City Clerk Bonnie Gawf APPROVED AS TO FORM: *meyeff gen MEETING AGENDA 1~` DATE ITEM # ! MEMORANDUM DATE: March 27, 1997 - TO: City Council FROM: John Dunn, City Administrative Officer l SUBJECT: Pre-annexation Agreements for the Ball and Spice Hunter Annexations Attached are the proposed pre-annexation agreements relative to the Ball (Public Hearing #1) and Spice Hunter (Public Hearing #2) annexations. These agreements are presently being reviewed by the applicants, with the goal of obtaining their signatures prior to the April 15` public hearings. L CD]..❑ FIN❑ FIREff B'PW❑ PO❑ RE❑ UTI❑ PER . //•%I7Pv LMS I J 9i/Al RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: City of San Luis Obispo Community Development Department 990 Palm Street San Luis Obispo, CA 93401-3249 APN: 076-352-038 076-352-039 PREANNEXATION AGREEMENT BY AND BETWEEN THE CITY OF SAN LUIS OBISPO AND ERNIE BALL INC. This annexation agreement is made and entered into this day of 1997, by and between the City of San Luis Obispo, a chartered municipal corporation, (hereinafter referred to as"CITY")whose address is 990 Palm Street, San Luis Obispo, California 93401; and Ernie Ball, Inc. 151 Suburban Road San Luis Obispo, California (hereinafter referred to as"OWNER"), pursuant to the authority of the City Charter and Section 56000 et. Seq. of the California Government Code. CITY and OWNER shall hereinafter be referred to collectively as "PARTIES" RECITALS WBEREAS, Ernie Ball Inc. is the owner in fee of certain real property in the County of San Luis Obispo, commonly known as 151 Suburban Road, APN # 076-352-038, and 039, further described in the attached Exhibit A and referred to herein as the"subject property"; and WHEREAS, the subject property is proposed for annexation to the City of San Luis Obispo (City File No. 154-96): and WHEREAS, to provide for the City's orderly growth and development, consistent with the General Plan, the PARTIES anticipate that the subject property will be annexed to the City pursuant to terms and procedures of the California Government Code 56000 et seq.; NOW TBEREFORE, in consideration of the mutual promises, covenants and agreements stated herein, PARTIES agree as follows: 1. URBAN SERVICES. Upon annexation the property shall be entitled to the full range of City services, including but not limited to water and sewer services, police and fire protection, and general government services, some of which are described below in more detail: Water Service. CITY agrees to provide water service as available for fire fighting and domestic purposes.to the subject property upon request of OWNER, subject to the same laws, rules, Preannexation Agreement:Emie Ball Page 2 regulations, and fees applicable to other new users in the City under similar circumstances, including but not limited to retrofit requirements. Any connection to the City water main in Suburban Road will require reimbursement. Use of existing on-site ground water or other sources for potable or non-potable uses may continue, provided they continue to meet County Health Department standards. In the event of abandonment or failure of well(s), OWNER shall comply with applicable State and County regulations regarding well abandonment. 'Non-potable water may be used for landscape irrigation. Sewer Service. City agrees to provide sanitary sewer service, as available, to the subject property upon request of the OWNER subject to the same laws, rules, regulations, and fees applicable to other new users in the City under similar circumstances. Use of existing on-site septic waste disposal systems, which were legally installed under permit from the County may continue, provided they meet County standards in effect at the time of annexation. If such systems are abandoned or fail to meet County standards, connection to the City sewer system will be required. Fire Protection. City agrees to provide fire protection service, as available, to the subject property upon request of the OWNER subject to the same laws, rules, regulations, and fees applicable to other new users in the City under similar circumstances. Development on the subject property must connect its fire suppression system to the water main in Suburban Road and will be charged a monthly fire protection service fee. Transportation Services. New construction on the subject property conducted under the jurisdiction of the County of San Luis Obispo (Building Permit No. ) is subject to City traffic impact fees payable upon completion of the annexation. 2. SPECIFIC PLAN AND AREAWIDE PLANNING AND INFRASTRUCTURE FEES. Airport Area Specific Plan and Infrastructure. This $15,237.00 per acre fee is the estimated apportioned cost of area-wide planning and construction of infrastructure within the Airport Annexation Area (including specific plan preparation, water and sewer system improvements, circulation system improvements, and storm drain system improvements). Owner hereby agrees to contribute $26,670.00, based upon current development of 1.74 acres. Such payment shall be secured by a letter of credit, submitted prior to final Council action on the Ernie Ball Annexation, and said letter of credit shall be in effect for a period not less than 5 years from the date of completion for that annexation. OWNER may elect to pay this fee immediately upon annexation or at any time within the five year period and retire the letter of credit. The same per acre fee shall be applied to the undeveloped 6.17-acre lot at the time a development application is received by the City Community Development Department for said lot, unless an area-wide assessment district or other mechanism.to recover costs for the services listed above is formed or adopted before a development application is received. Assessment District.Recognizing that it is possible these costs may instead be recovered through a future assessment district, Ernie Ball Inc.hereby agrees not to protest the formation of any such district. Preannexation Agreement:Ernie Ball Page 3 . 3. OPEN SPACE. This $2,500.00 per acre fee is the apportioned cost for acquisition of an open space buffer to the south of the Airport Area as required by the General Plan. OWNER agrees to contribute $4,350.00, based upon current development of 1.74 acres, prior to final Council action on the Envie Ball Annexation. The remainder of the fee, $15,650.00 will be collectable when the vacant portion of the Ernie Ball Annexation is developed. 4.. COMPLIANCE WITH CITY STANDARDS. Once annexed the property will be subject to the same rules, regulations, laws, and fees that would be applied to other properties in the City under similar circumstances including, but not limited to Building Code, Fire Code, Zoning Regulations, environmental regulations (California Environmental Quality Act), fees, and other provisions of the Municipal Code and State laws. 5. PROPERTY EVVIPROVEMENTS. At the time of future development or redevelopment, it shall be the responsibility of the OWNER to install and/or pay for improvements and fees which may be required by permit, law, rule, regulation, or mitigation, unless otherwise specified in an adopted Airport Area Specific Plan and the certified environmental review document for that specific plan. 6. TERM OF AGREEMENT. The term of this agreement shall begin upon the effective date of the annexation. The agreement shall remain in effect until modified or terminated by mutual consent of the PARTIES. In the event the annexation shall not become effective for any reason whatsoever, this agreement shall terminate and have no force and effect, as if it had never been entered into by the PARTIES. 7. SUCCESSORS, HEIRS, AND ASSIGNS. This agreement shall be recorded with the County Recorder and shall bind and inure to the benefit of the heirs, assigns, and personal representatives of the PARTIES. S. AMENDMENTS, TOM EXTENSION OR CANCELLATION. This agreement may be amended, extended, or canceled at any time by mutual consent of the PARTIES or their successors in interest. IN WITNESS WHEREOF, this agreement is executed on the date above stated at San Luis Obispo, California. ALL SIGNATURES MUST BE NOTARIZED OWNER BY: . Preannexation Agreement:Ernie Ball Page 4 CITY OF SAN LUIS OBISPO, A Chartered Municipal Corporation BY: Mayor Allen Settle ATTEST: City Clerk Bonnie Gawf APPROVED AS TO FORM: me Jeff ,rge n a Sao 1 Q ogsh � -s CL 9 R� o��"ya A � � o x i �i I � 01 C• SuauRau+ Ro�D C7 1 o u "ay < I J=:g a' ll7 23Ehh L +moi• O �„ oQc:3etl hh` auOnLr Ro.D 1 W d6V V A C H E L L z - - - T- R A C T _— - - •1 _2N SUBURBAN u ' _ ROAD (— - $ALU1$ OBI$GO S59]S'1 VW _]_0.oQo'QTYOr 76' (R7) '16wS89'52'10-W 323. S89'520" 131.26' RI) Q 1 I I ro r J N �I CO BE W , $c ' Ln o N =I Z N � � a g, . I 0- 589'52'10"w Sag-3T1owlgzar . I I 192.53' (RI) ¢I i m m' v h J I Z i J N N W � W W tK.. -. V U 3 O� Ua � O N I IN rl 4V J I I ato N a I a o . 3 W 0 0 v0I o 0 1` I z I 1 I I 1 Y - N89'52.37-E 323.82- (Rt) I N69'52'37E 323.81' (RI) .: M647.63' (RI) Ii i EXHIBIT A SEC. 1O. T315 R12E RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: City of San Luis Obispo Community Development Department 990 Palm Street San Luis Obispo, CA 93401-3249 APN: 076-352-053 PREANNEXATION AGREEMENT BY AND BETWEEN THE CITY OF SAN LUIS OBISPO AND SPICE HUNTER This annexation agreement is made and entered into this day of 1997, by and between the City of San Luis Obispo, a chartered municipal corporation, (hereinafter referred to as"CITY")whose address is 990 Palm Street, San Luis Obispo, California 93401; and SH Investments, LLC., located at 254 Granada Drive, San Luis Obispo, California (hereinafter referred to as "OWNER"), pursuant to the authority of the City Charter and Section 56000 et. Seq. of the California Government Code. CITY and OWNER shall hereinafter be referred to collectively as"PARTIES." RECITALS WHEREAS, SH Investments, LLC., is the owner in fee of certain real property in the County of San Luis Obispo, commonly known as 191 Tank Farm Road, APN # 076-352-053, further described in the attached Exhibit A and referred to herein as the"subject property"; and WHEREAS, the subject property is proposed for annexation to the City of San Luis Obispo (City File No. 154-96): and WHEREAS, to provide for the City's orderly growth and development, consistent with the General Plan, the PARTIES anticipate that the subject property will be annexed to the City pursuant to terms and procedures of the California Government Code 56000 et seq.; WHEREAS, the specific plan and area wide planning and infrastructure fees set forth in Section 2 of this agreement apply only to the Spice Hunter portion of the annexation, with fees relative to the Sonic Cable property to be applied based upon the fees in effect at the time of future site development; NOW THEREFORE, in consideration of the mutual promises, covenants and agreements stated herein,PARTIES agree as follows: Preannexation Agreement: Spice Hunter Page 2 1. URBAN SERVICES. Upon annexation the property shall be entitled to the full range of City services, including but not limited to water and sewer services, police and fire protection, and general government services, some of which are described below in more detail: . Water Service. CITY agrees to provide water service as available for fire fighting and domestic purposes to the subject property upon request of OWNER, subject to the same laws, rules, regulations, and fees applicable to other new users in the City under similar circumstances, including but not limited to retrofit requirements. Any connection to the City water main in Suburban Road will require reimbursement. Use of on-site ground water or other sources for potable or non-potable uses may continue, provided .they continue to meet County Health Department standards. In the event of abandonment or failure of well(s), OWNER shall comply with .applicable State and County regulations regarding well abandonment. Non-potable water maybe used for landscape irrigation. Sewer Service. City agrees to provide sanitary sewer service, as available, to the subject property upon request of the OWNER subject to the same laws, rules, regulations, and fees applicable to other new users in the City under similar circumstances. Fire Protection. City agrees to provide fire protection service, as available, to the subject property upon request of the OWNER subject to the same laws, rules, regulations, and fees applicable to other new users in the City under similar circumstances. 2. SPECIFIC PLAN AND AREAWIDE PLANNING AND INFRASTRUCTURE FEES. Airport Area Specific Plan and Infrastructure. This $15,237.00 per acre fee is the estimated apportioned cost of area-wide planning and construction of infrastructure within the Airport Annexation Area (including specific plan preparation, water and sewer system improvements, circulation system improvements, and storm drain system improvements). Owner hereby agrees to contribute $107,293.00, based upon the size of OWNER'S lot - 7 acres. Such payment shall be secured by a letter of credit, submitted prior to final Council action on the Spice Hunter/ Sonic Annexation, and said letter of credit shall be in effect for a period not less than 5 years from the date of completion for that annexation. OWNER may elect to pay this fee immediately upon annexation or at any time within the five year period and retire the letter of credit. Assessment District. Recognizing that it is possible these costs may instead be recovered through a future assessment district, SH Investments Inc. hereby agrees not to protest the formation of any such district. 3. OPEN SPACE. This $2,500.00 per acre fee is the apportioned cost for acquisition of an open space buffer to the south of the Airport Area as required by the General Plan. OWNER agrees to contribute $17,500.00, based upon OWNER'S lot size of 7 acres, prior to final Council action on the Spice Hunter/ Sonic Annexation. 4. COMPLIANCE WITH CITY STANDARDS. Once annexed the property will be subject to the same rules, regulations, laws, and fees that would be applied to other properties in the City Preannexation Agreement: Spice Hunter Page 3 under similar circumstances including, but not limited to Building Code, Fire Code, Zoning Regulations, environmental regulations (California Environmental Quality Act), fees, and other provisions of the Municipal Code and State laws. 5. PROPERTY DOROVEMENTS. At the time of future development or redevelopment, it shall be the responsibility of the OWNER to install and/or pay for improvements and fees which may be required by permit, law, rule, regulation, or mitigation, unless otherwise specified in an adopted Airport Area Specific Plan and the certified environmental review document for that specific plan. 6. TERM OF AGREEMENT. The term of this agreement shall begin upon the effective date of the annexation. The agreement shall remain in effect until modified or terminated by mutual consent of the PARTIES. In the event the annexation shall not become effective for any reason whatsoever, this agreement shall terminate and have no force and effect, as if it had never been entered into by the PARTIES. 7. SUCCESSORS, HEIRS, AND ASSIGNS. This agreement shall be recorded with. the County Recorder and shall bind and inure to the benefit of the heirs, assigns, and personal representatives of the PARTIES. 8. AMENDMENTS, TMR EXTENSION OR CANCELLATION. This agreement may be amended, extended, or canceled at any time by mutual consent of the PARTIES or their successors in interest. IN WITNESS WEEREOF, this agreement is executed on the date above stated at San Luis Obispo, California. ALL SIGNATURES MUST BE NOTARIZED OWNER BY: CITY OF SAN LUIS OBISPO, A Chartered Municipal Corporation BY: Mayor Allen Settle Preannexation Agreement: Spice Hunter. 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