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HomeMy WebLinkAbout08/17/2004, C1 - MODIFICATIONS TO THE MINUTES OF AUGUST 3, 2004 IIIIIIIIIIIIIIIIIIIIIIIIII RED FILE SEE--y council memonanoum ME NG AGENDA JQty of San Luis Obispo August 13, 2004 TO: Mayor & Members of the City Councilj COUNCIL CDD IF ` ] CAO FIN D ACA0 FIRE FROM: Diane Reynolds, Deputy City Clerk ArrORNEY PWDv i CLERKiORIG POLIVIA: Ken Hampian, CAO i I Dips 16 REc�r� UTILSUBJECT: Modifications to the Minutes of August 3, 2004 Mayor Romero has requested the following modifications to the wording and added language to the Minutes of August 3rd: PH2, page 3: Change Mayor Romero's remarks on the Broad Street project: Mayor.Romero expressed concern Fegwdln�whet-he r.t-he r-e st-r-m a0i a-n-- -a S_ tau-a ear-s peF unit was nte ihe par-king and bike lane situatie n -an S_aGramenlo DFive, -And Uha axillent-190F G!the pFeleGt Gn -- -hat nFanaFtv 0:21 pa—l—rho live andfor.vrork in the City zpressed concern with on-site parking for this project Her suggested at the he allowed parking reduction be 26% rather than 30%(developer-shows 26%). He'__ expressed the need for a homeowners association having a specific emphasis to control the parkin I of only 2 cars per unit. He asked staff to review the design for Sacramento Drive to determine if both parking and a bike lane could be accommodated, perhaps by minor roadway widening He asked staff to look at the Sacramento Drive entry into the project where he perceives a restriction to I I traffic movement with the choker shown. C2, page 5: Add language to City Attorney Lowell's report and the Council Action on the Marketplace project: City Attorney Lowell reported on the effect of the referendum petition on City Council decisions to be considered under this item and Public Hearing No. 3 regarding the Dalidio Development Agreement, Special Tax Reimbursement Agreement and Conservation Easement Agreement; and recommended that Council make the changes referred to in his memo dated August 3,2004 (on file in the City Clerk's Office)concerning making the effective date of this action coincide with the effective date of the General Plan amendment resolution that is the subject of a pending referendum petition. A majority of the Council agreed that providing all information to the public regarding the San Luis Marketplace project is important before the project goes to a vote of the people,and therefore, to proceed with the alternative recommendations made by City Attorney Lowell, modifying language as stated in his memo of August 3,2004 (on file in the City Clerk's Office)l concerning making the effective date of this action coincide with the effective date of the General Plan amendment resolution that is the subject ofspending referendum ep thion ACTION: Moved by Ewan/Romero to grant final passage to Ordinance No. 1449(2004 Series), as modif/ed perthe August 3,2004 memo from City Attorney Lowell(on file in the City Clerk's? 'Office)concerning making the effective date of this action coincide with the effective date of the General Plan amendment resolution that is the subject of a pending referendum petition,which upholds an appeal of the Planning Commission's recommended denial of a proposed prezoning Corrections w Minutes Aug 3-Mayor for the Dalidio Annexation and prezones: 48.7 acres of the property to C-R-PD, Retail- Commercial with the Planned Development overlay zoning; 8.1 acres as O-S, Office with the Special Consideration overlay zoning;3.3 acres as R-3-S, Medium-High Density Residential with the Special Consideration overlay zoning; 45 acres as AG, Agriculture; 9.7 acres as C/OS-40, Conservation/Open Space with a 40-acre minimum parcel size; with the remainder 16.2 acres allocated toward roads and interchange right-of-way,to be consistent with the amended LUE map designations based on findings. The ordinance also includes the approval of a Preliminary Development Plan for the San Luis Obispo Marketplace component of the project in conjunction with that part of the site's C-R-PD zoning, Retail-Commercial with the Planned Development overlay; motion carried 3:1:1; Mulholland opposed,Settle recused. PH3, pages 9-10: Change Mayor Romero's remarks and add language to the Council Action on the Marketplace project: Mayor Romero commented that the project has a long history and that he Is cencemed about traffic ne-eds on t-he south paFt of the this project will relieve many traffic problems In this area of the City; The City needs to take advantage of the funding opportunity, as street maintenance projects are followFing ef#continually being red cu ed Also,the project will stop the leakage of sales tax out of the City. The Downtown gets special attention from the General Fund. The project will preserve open space. If the project isn't built within the City,the County willis likely to permit a project there instead. CAO ACTION: Moved by Ewan/Schwartz to 1)Based on findings, introduce Ordinance No. 1452. (2004 Series)approving the Development Agreement with the Property Owner and the Developer of the San Luis Obispo Marketplace; as amended to add new Sections 5.6 and 5.7,and renumbering Section 5.6(City Discretion)to Section 5.8 per the July 30,2004 memo from City Attorney Lowell(on file in the City Clerk's Officek to i it the number of freeway signs to one include revisions per the August 2,2004 memo from City Attorney Lowell(on file in the City[l Clerk's Office),to include revisions per the August 3,2004 memo from City Attorney Lowell (on file in the City Clerk's Office)concerning making the effective date of this action coinc�withthe effective date of the General Plan amendment resolution that is the sublect of a pe referendum petition; and, authorize the Mayor to execute the agreement 2)Approve the Special Tax Reimbursement Agreement with the Property Owner and the Developer of the San Luis Obispo Marketplace:'as amended to include revisions per the August 2,2004 memo from City Attorney Lowell(on file in the City Clerk's Office), to include revisions per the August 3,2004 !memo from City Attorney Lowell(on file in the City Clerk's Office)concerning making the(� effective date of this action coincide with the effective date of the General Plan amendment resolution that is the subject of a pending referendum petition and, authorize the Mayor to execute the agreement. 3)Adopt Resolution No.9596(2004 Series)approving a Conservation Easement Agreement with the Property Owner and the Developer of the San Luis Obispo Marketplace; as amended in the July 30,2004 memo from City Attorney Lowell(on file in the City C'lerk's Of 1cee , to include revisions per the August 3,2004 memo from CityAttorney Lowell(on ale in the City Clerk's Office)concerning making the effective date of this action coincide with 'the effective date of the General Plan amendment resolution that is the subiect of a pending referendum petition;and, authorize the Mayor to execute the agreement; motion carried 3:1:1, Mulholland opposed,Settle recused. RED FILE MINUTES MEETING AGENDA REGULAR MEETING OF THE CITY COUNO0ATE P i7 a< Z ITEM #0; CITY OF SAN LUIS OBISPO TUESDAY, AUGUST 3,2004-4:00 P.M. COUNCIL CHAMBER,990 PALM STREET SAN LUIS OBISPO, CALIFORNIA ROLL CALL: Council Members Present: Council Members John Ewan, Christine Mulholland, Allen K. Settle, Vice Mayor Ken Schwartz and Mayor Dave Romero City Staff: Present: Ken Hampian,City Administrative Officer; Jonathan Lowell, City Attorney; Diane Reynolds, Deputy City Clerk;Wendy George, _ yl ^ Assistant City Administrative Officer; John Mandeville, Community COUNCM CDD DIR Development Director; Bill Statler, Finance Director; Monica CAO FIN DIR Moloney, Human Resources Director; Deborah Linden, Police Chief; ACAO G FIRE CHIEF Wolfgang Knabe, Fire Chief;John Moss, Utilities Director; Mike ATTORNEY [h PW DIR McCluskey, Public Works Director; Paul LeSage, Parks and CLERK/ORIG Ct POLICE CHF Recreation Director; Betsy Kiser, Principal Administrative Analyst; DEPT HEADS G REC DIR Tim Bochum, Deputy Director Public Works; Jake Hudson,Assistant T tj UTIL DIR Engineer; Shelly Stanwyck, Economic Development Manager; Ron D �(� HR DIR Whisenand, Deputy Director Community Development BUSINESS ITEMS 1. 2003 ANNUAL TRAFFIC SAFETY REPORT. Public Works Director McCluskey. Deputy Director Public Works Bochum and Assistant Engineer Hudson presented the staff report and responded to Council questions. Vice Mayor Schwartz requested that citations given in bicycleivehicle related accidents be added to the next Annual Traffic Safety Report: Staff directed to include this information in the next report. Public Comments Marv.Beth Schroeder, San Luis Obispo,feels unsafe on her street and stated that her neighbors drive unsafety. She is also concerned about the noise level of motorcycles in her neighborhood. —end of public comments— ACTION: The 2003 Annual Traffic Safety Report and associated mitigation strategies received by general consensus. PUBLIC HEARING 2. USE PERMITVESTING TENTATIVE TRACT MAP, AND ENVIRONMENTAL REVIEW FOR A MIXED-USE PROJECT WITH 82 DWELLINGS AND 31,280 SQUARE FEET OF 1 City Council Meeting �� Page 2 Tuesday, August 3,2004, 4:00 p.m. COMMERCIAL FLOOR AREA,WITH A REQUEST FOR A MIXED-USE PARKING REDUCTION: 3592 BROAD(U/TR/ER 24-03) Community Development Director Mandeville introduced the item, and Associate Planner Codron presented the staff report: Council questions ensued. Hamish Marshall, Broad Street Partners, stated that this is an appropriate project for the mixed use site, and that it is affordable by design. Carol Florence, Oasis Associates, spoke in support of the project stating that an unsightly property will be developed into an attractive mixed use project with affordable housing. The project includes smart growth principles and a mix of housing types, is well integrated with the surrounding area, and the restored creek will be a nice addition to the neighborhood. Mayor Romero opened the public hearing. Don Hedrick, San Luis Obispo,spoke in opposition to the project and reviewed the points of his letter submitted to the Council (on file in the City Clerk's Office). He specifically expressed concern about creek problems downstream from the project and special setback requirements. Todd Newman,San Luis Obispo, spoke in support of the project, stating that the site is ideal for medical services relating to physical therapy and occupational medicine. The project will help keep medical professionals in the City. Tim Williams,San Luis Obispo,stated that he is concerned about noise and safety issues related to the project, but.is glad it will bring increased business to the area. JJ Parsons, San Luis Obispo, spoke against the project, expressing concern about zoning changes in general. He stated that it is a high density residential project in a commercial zone,and will cause child safety problems. Andrew Carter,San Luis Obispo, spoke in support of the project, stating that affordable housing is not readily available in the City, and that this project will be affordable and built quickly. Mary Beth.Schroeder, San Luis Obispo, objected to mixed use development. Steve Delmartini, San Luis Obispo,expressed concern whether the affordable housing conforms to existing uses there now. Potential buyers should be made aware of noise, pollution and construction,and that there be disclosures regarding the properties. Mayor Romero closed the public hearing. Vice Mayor Schwartz stated that the project addressed environmental issues, but did not address services for people,especially children,who will move into the area. He expressed concern regarding the need for schools, parks and buses. Council Member Mulholland spoke against the project stating that mixed use projects would be best suited for areas with residential and light commercial retail and office,and that housing is not compatible with heavy commercial-industrial areas. She also stated that a Planning Commissioner, who voted on the project at a Planning Commission C�-z- City Council Meeting ' � Page 3 Tuesday,August 3,2004,4:00 p.m. meeting,should have recused himself,as he signed off on studies that had been done for the project and were submitted to the Planning Commission and City Council for review. Mayor Romero expressed concern regarding whether the restriction of two cars per unit was enforceable over time. He expressed the need for a homeowners association. He asked staff to look into the parking and bike lane situation on Sacramento Drive,and the exit/entry of the project on Sacramento Drive. He stated that property sales should be to people who live and/or work in the City and that.a lottery may be appropriate. Council Member Ewan spoke in support of the project stating that-Broad Street is an interesting corridor into which this mixed use project would well fit. He expressed concern about residents crossing the railroad tracks to get to adjoining areas. Council Member Settle stated that he supports the project because he is in favor of mixed- use projects as infill; is pleased with how well the Villa Rosa project worked out; appreciates the fact that the project does not cater to driving and cars;and, it meets the land use policy for mixed use. ACTION: Moved by Settle/Ewan to adopt Resolution No.9594(2004 Series) approving the Use Permit, Vesting Tentative Tract Map, and Mitigated Negative Declaration for the project,and amending Exhibit A changing all the wording of "should"to "shall"; motion carried 3:2 (Mulholland, Schwartz opposed). Mayor Romero called a recessed at 6.30 p.m.and reconvened the meeting at 7.00 p.m. PRESENTATION Mark Shaffer, Executive Director Ride-On Transportation, gave a presentation regarding the various Ride-On Services offered in the City of San Luis Obispo. PUBLIC COMMENT Kathleen McFadden, San Luis Obispo,expressed appreciation for the ballot measure committee Save San Luis Obispo,and asked Council to consider the voice of the people and to suspend action on the Marketplace items on the agenda. Gary Fowler, San Luis Obispo, expressed concern regarding many of the issues he has brought up to Council in the past,especially the senior center and the cost of the Nacimiento Water Project for seniors. Michael Helper, San Luis Obispo,asked Council to suspend action on the Marketplace project and to allow voters to decide the issue. Peaav Koteen, San Luis Obispo, asked Council to change the Downtown Association's rule banning distribution of adhesive materials and bumper stickers, at the Thursday Night Farmers Market. She stated that it is a violation of freedom of speech. Bill Rosensteel, Republican Party, read a letter from Tom Bordonaro asking Council to look into the Downtown Association Fanners Market rule prohibiting political materials with adhesive(letter on file in the City Clerk's Office). Tom Hutchings, Green Party,thanked Council for agendizing the bumper sticker issue. 0-3 City Council Meeting ` - Page 4 Tuesday,August 3,2004,4:00 p.m. Gail Lightfoot, Libertarian Party,also spoke in protest of the adhesive bumper sticker ban. Sanford Cook, Democratic Party,also spoke in protest of the adhesive bumper sticker ban and asked Council to take immediate action. Evelyn Delmartini, Republican Women,also spoke in protest of the adhesive bumper sticker ban. Linda Donnelly, Morro Bay,also spoke in protest of the adhesive bumper sticker ban. Council directed staff to place this issue on the August 17th Council meeting. Cliff Branch. San Luis Obispo,asked Council to look.into the problem of unattractive gateways to the City,especially the Corp Yard area. Council referred this issue to staff. Eugene Jud, San Luis Obispo,spoke on behalf of the Save San Luis Obispo ballot measure committee and asked Council to suspend action on the Marketplace project. Dennis Adams,expressed concern regarding Downtown Association issues. Terry Moylan, San Luis Obispo, stated that he is a member of the Save San Luis Obispo committee, and asked Council to allow the voters to decide the Marketplace issue. CONSENT AGENDA ACTION: Moved by Mulholland/Settle to approve the consent agenda as recommended by the City Administrative Officer,with the except of C2 and C6,pulled for comment and separate vote; motion carried 5:0. C1. APPROVE MINUTES OF MONDAY,JUNE 28,2004 SPECIAL MEETING,TUESDAY, JUNE.29,2004 SPECIAL MEETING AND TUESDAY,JULY 6,2004 REGULAR MEETING ACTION: Moved by Mulholland/Settle to waive oral reading and approve as amended; motion carried 5;0. C2. FINAL PASSAGE OF AN ORDINANCE P-REZONING VARIOUS AREAS OF THE DALIDIO ANNEXATION SITE AND APPROVING A PRELIMINARY DEVELOPMENT PLAN FOR.THE RETAIL COMPONENT KNOWN AS THE MARKETPLACE(R 108-02). Council Member Settle recused himself and left the Council Chamber due to a conflict of interest(he resides in the area of the project). City Attorney.Lowell reported on the effect of the referendum petition on City Council decisions to be considered under this item and Public Hearing No.3 regarding the Dalidio Development Agreement, Special Tax Reimbursement Agreement and Conservation Easement Agreement; and recommended that Council make the changes referred to in his memo dated August 3,2004(on file in the City Clerk's Office). Public Comment e/-y City Council Meeting Page 5 Tuesday, August 3,2004,4:00 p.m. Jan Marx,San Luis Obispo, requested that Council approve the project in principle only,and wait the thirty-day period for the qualification of the petition before making further decisions regarding the San Luis Marketplace project. —end of public comments— A majority of the Council agreed that providing all information to the public regarding the San Luis Marketplace project is important before the project goes to a vote of the people;and therefore, to proceed with the alternative recommendations made by City Attorney Lowell,modifying language as stated in his memo of August. 3,2004(on file in the City Clerk's Office). ACTION: Moved by Ewan/Romero to grant final passage to Ordinance No. 1449 (2004 Series), as modified per the August 3,2004 memo from City Attorney Lowell (on file in the City Clerk's Office), which upholds an appeal of the Planning Commission's recommended denial of a proposed prezoning for the Dalidio Annexation and prezones: 48.7 acres of the property to C-R-PD, Retail-Commercial with the Planned Development overlay zoning; 8.1 acres as O-S, Office with the Special Consideration overlay zoning; 3.3 acres as R-3-S, Medium-High Density Residential with the Special Consideration overlay zoning; 45 acres as AG, Agriculture; 9.7 acres as C/OS-40, Conservation/Open Space with a 40-acre minimum parcel size; with the remainder 16.2 acres allocated toward roads and interchange right-of-way,to be consistent with the amended LUE map designations based on findings. The ordinance also includes the approval of a Preliminary Development Plan for the.San Luis Obispo Marketplace component of the project in conjunction with that part of the site's C-R-PD zoning, Retail-Commercial with the Planned Development overlay; motion carried 3:1:1; Mulholland opposed, Settle recused. C3. ADOPTION OF AN ORDINANCE REZONING PROPERTY AT 1661 MILL STREET AND 1231 LAUREL LANE(R 37-04 AND R 121-03). ACTION: Moved by Mulholland/Settle to grant final passage to Ordinance No. 1450 (2004 Series); motion carried 5:0. C4. FINAL PASSAGE OF ORDINANCE NO. 1451 (2004 SERIES). AMENDING THE ZONING REGULATIONS TO ALLOW CERTAIN MEDICAL SERVICES IN THE SERVICE COMMERCIAL(CS)AND BUSINESS PARK(BP)ZONES. ACTION: Moved by Mulholland/Settle to grant final passage to Ordinance No. 1451 (2004 Series); motion carried 5:0. C5. WATER RECLAMATION FACILITY(WRF) DISSOLVED AIR FLOTATION THICKENER (DAFT) REPAIR. SPECIFICATION NO. 90461. ACTION: Moved by Mulholland/Settle to 1) Reject all bids for the"WRF DAFT Repair", Specification No..90461. 2)Authorize staff to advertise for bids in Spring, 2005 and authorize the City Administrative Officer to award the contract if the lowest responsible bid is within the engineer's estimate of$200,000; motion carried 5:0. C6. LEAGUE OF CALIFORNIA CITIES ANNUAL CONFERENCE.VOTING DELEGATE/ALTERNATE 2004. C/, �� City Council Meeting - - Page 6 Tuesday,August 3,2004,4:00 p.m. ACTION: Moved by Schwartz/Mulholland to designate Mayor Romero as the voting delegate and Council Member Settle as the voting alternate to the League of California Cities Annual Conference; motion carried 5:0. C7. APPROVAL OF AMENDMENT NO. 1 TO FUGRO WEST AGREEMENT—WATER REUSE.MATERIALS TESTING AND INSPECTION SERVICES. ACTION: Moved by Mulholland/Settle to approve Amendment No. 1 to the agreement with Fugro West, Inc.,to complete the remaining materials testing and inspection services for the Water Reuse Project, cost not to exceed $32,000; motion carried 5:0. C8. SWIM CENTER SAND FILTRATION PROJECT, SPECIFICATION NO. 90351. ACTION: Moved by Mulholland/Settle to 1)award a contract in the amount of $237,600 to NADAR for"Swim Center High Rate Sand Filtration, Specification No. 90351"and authorize the Mayor to execute the agreement. 2)Approve using $12,600 from budgeted contingencies to cover the difference between the bid amount and the engineer's estimate; motion carried 5:0. C9. GRANT APPLICATION SUBMITTALS FOR POLICE SERVICES. ACTION: Moved by Mulholland/Settle to 1)authorize staff to submit a grant application to the Federal Bureau of Justice Assistance for a 2004 Local Law Enforcement Block Grant in the amount of$9,800,which will require City matching funds In the amount of$1,089. 2)Authorize staff to submit grant application to the State of California Board of Correction for a 2004 Juvenile Accountability Incentive Block Grant in the amount of$6,167,which will require City matching funds in the amount of$685. 3)Authorize the Chief of Police to execute all grant related documents; motion carried 5:0. C10. ACCEPTANCE OF STATE GRANT FOR$75.000 TO INCREASE ALCOHOL EDUCATION AND ENFORCEMENT PROGRAMS. ACTION: Moved by Mulholland/Settle to 1)adopt Resolution No.9595(2004 Series) to increase education and enforcement programs focusing on underage drinking and to enter into a contract with the State to accept$75,000 in grant funding provided through the Alcoholic Beverage Control in cooperation with the Enforcing Underage Drinking Laws Community Trials Initiative Program. 2)Authorize the Chief of Police to execute all grant related documents; motion carried 5:0. PUBLIC HEARINGS,CONTINUED 3. CONSIDERATION AND REVIEW OF REQUEST FOR THE.CITY.TO ENTER INTO A DEVELOPMENT AGREEMENT WITH THE PROPERTY OWNER AND THE DEVELOPER OF THE.SAN LUIS OBISPO MARKETPLACE PROJECT,AS WELL AS A SPECIAL-TAX REIMBURSEMENT AGREEMENT AND CONSERVATION EASEMENT AGREEMENT. Council Member Settle recused himself and left the Council Chamber due to a conflict of interest(he resides in the area of the project). i City Council Meeting Page 7 Tuesday,August 3,2004, 4:00 p.m. City Attorney Lowell, ACAO George and Economic Development Manager Stanwyck presented the staff report Natural Resources Manager Havlik reviewed the terms of the Conservation Easement Staff responded to Council questions regarding signage, parking,financing and sales tax reimbursement,open space,traffic circulation and impacts, conservation easement and the historic Sulkey stadium,and the use of agricultural land. Mayor Romero called a recess at 9:07 p.m.and reconvened the meeting at 9:15 p.m. Mayor Romero opened the public hearing. Bill Bird,SLO Properties, stated that the historic stadium is proposed to be moved to the original location on the Dalidio property. He stated that he would be able to do the project without the tax reimbursement from the City if the developer didn't have to fund the interchange. Al Lipper, San Luis Obispo,stated that he believes smaller stores Downtown closed as a result of big box stores elsewhere in the City. He expressed concern that.the project will fail and that Downtown will be left vacant and destroyed. He asked Council to save the Downtown. Lee Ferrero, Los Osos, believes that the City should be the hub of the County for retail, which is a Chamber of Commerce goal. The Marketplace and Downtown each has its own unique customer base. The Downtown Association and the Chamber have the ability to keep Downtown vibrant In addition,the new Copeland project will help Downtown. The seismic retrofit is more of a challenge for the Downtown, and that even bigger financial problems await the City from Sacramento. Richard Kranzdorf, San Luis Obispo, stated that the City is in a dangerous financial situation and that tax money given back to the developer is a bad idea. Eugene Jud.San Luis Obispo,expressed concern about traffic congestion problems that would affect health and increase gas consumption. He hopes that the City would continue to move in the direction of alternative transportation and quality of life. Jan Mark, San Luis Obispo, shared a list of the negative Impacts of LA style development, specifically air pollution problems(on file in the City Clerk's Office). She stated that the people do not find environmental impacts and loss of business acceptable. She expressed concern that tax sharing with a developer who does not have a good financial record is risky. Jerry Moore.San Luis Obispo, asked Council to leave the land alone,and to study traffic patterns for reasonable alternatives to the Prado Road Interchange. Dennis Adams,San Luis Obispo, inquired about the connection of Prado Road to Broad Street David Booker,San Luis Obispo,asked for clarification regarding the affordable housing component, penalties for Downtown businesses that relocate to the Marketplace,and the opening of Marketplace businesses before the Prado Road interchange is completed. He asked that the development agreement state that stores will open simultaneously with the street access to them. t?/-7 1 City Council Meeting Page 8 Tuesday, August 3,2004,4:00 p.m. Deborah Cash, Downtown Association, shared a message from the Mainstreet Program that Downtown vitality is supported best by the development of small industry. She asked Council for help to put a mechanism in place in the development agreement that would provide direct payment to the Downtown Association based on square footage of the Marketplace. Andrew Carter, San Luis Obispo, stated that he supports the agreements,and inplementing the City's General Plan and urged the Council to stay the course. Mary Beth Schroeder.San Luis Obispo, stated that she is against more shopping centers. Kathleen McFadden, San Luis Obispo,expressed concern that Downtown businesses will be penalized for trying to survive by moving out of the Downtown. Richard Schmidt. San Luis Obispo, stated that he is confused by the City sales tax give- away to the developer when the City wants more sales tax revenue. He is also concerned about the open space dedication and the General Fund being used as colateral. Orval Osborne, San Luis Obispo, asked Council to reject the proposed development agreement. He is concerned that rebating sales tax is setting a precedent for other developers and stated that it is the judgement of the Planning Commission that the City should only enter into this kind of rebate agreement when the City is in a dire financial state. He remarked that the CAO recommendation and the Planning Commission recommedation on the agenda were at odds. Steven Marx, San Luis Obispo, asked whether the City was floating a bond for the developer. Peggy Koteen, San Luis Obispo, shared her concern about the tax sharing agreement. Sandy Allen, San Luis Obispo,.asked Council to consider the Planning Commission's decision on the development and also to take into consideration the wishes of the citizens who signed the petition. Donna Wilson, San Luis Obispo,expressed concerned about the possible effect of Marketplace traffic on Oceanaire Drive. Mayor Romero closed the public hearing. Staff and Consultant Kotin responded to questions from the public. Council Member Ewan commented that the project has a long history and that many of the changes made over time have been misunderstood. He is supporting the agreements as he wants citizens to have a clear understanding of the project before the matter goes on the ballot. He is please with the conservation agreement and the proposed open space property on Buckley Road. At Council Member Ewan's request, Council directed staff to allow one freeway sign and two entry signs for the project. Council Member Mulholland commented that staff is rushing this project so it wouldn't become a campaign issue. She is opposed to the tax sharing agreement and would rather see the City direct attention to the Los Osos Valley Road overpass. The City should maintain the infrastructure it already has. The project findings are not consistent with the (!/-1 1 City Council Meeting Page 9 Tuesday, August 3,2004,4:00 p.m. General Plan for health and welfare,and will result in air pollution, noise, gridlock, loss of historical resources and agricultural land. Vice Mayor Schwartz commented that there is a long history of the project and some misunderstanding as well. The City is not fiscally well off as the State is taking the money. The Downtown has given up being a regional shopping center. The commercial center on Madonna replaces the kind of stores that used to exist in the Downtown. The City needs to have the commercial development in order to keep up with Public Works capital improvement projects demand. The Los Osos Valley Road overpass is desperately needed. Flooding is an expensive repair. There is a economic and social need for the commercial development. Mayor Romero commented that the project has a long history and that he is concerned about traffic needs in the south part of the City. The City needs to take advantage of the funding opportunity,as street maintenance projects are following off. Also,the project will stop the leakage of sales tax out of the City. The Downtown gets special attention from the General Fund. The project will preserve open space. If the project isn't built within the City,the County will permit a project there instead. CAO ACTION: Moved by Ewan/Schwartz to 1)Based on findings, introduce Ordinance No. 1452(2004 Series)approving the Development Agreement with the Property Owner and the Developer of the San Luis Obispo Marketplace;as amended to add new Sections 5.6 and 5.7,and renumbering Section 5.6(City Discretion)to Section 5.8 per the July 30,2004 memo from City Attorney Lowell(on file in the City Clerk'Office),but limiting the number of freeway signs to one;and to include revisions per the August 2,2004 and August 3,2004 memos from City Attorney Lowell(on file in the City Clerk's Office); and authorize the Mayor to execute the agreement: 2)Approve the Special Tax Reimbursement Agreement with the Property Owner and the Developer of the San Luis Obispo Marketplace, as amended to include revisions per the August 2,2004 and August 3,2004 memos from City Attorney Lowell(on file in the City Clerk's Office); and authorize the Mayor to execute the agreement. 3)Adopt Resolution No. 9596(2004 Series)approving a Conservation Easement Agreement with the Property Owner and the Developer of the San Luis Obispo Marketplace; as amended In the July 30,2004 memo from City Attorney Lowell(on file in the City Clerk's Officer and authorize the Mayor to execute the agreement; motion carried 3:1:1, Mulholland opposed, Settle recused. Mayor Romero called a break at 11:15 and reconvened the meeting at 11:25 p.m. Council Member Ewan and Council Member Mulholland were absent at the beginning of the presentation of the next item, but returned to the dais within a few minutes. 4. APPEAL OF THE PLANNING COMMISSION'S.ACTION APPROVING A USE PERMIT TO ALLOW AN OUTDOOR BARBEOUE IN CONJUNCTION WITH AN EXISTING DELI (OLD COUNTRY DELI)AT 600 MARSH STREET(AP,PC 49-04). Community Development Director Mandeville presented the staff report. Staff responded to Council questions. Mayor Romero opened the public hearing. Dennis Adams,appellent,expressed concern that the outdoor barbeque causes health problems,environmental problems,and should be required to have a filtered air system like I City Council Meeting Page 10 Tuesday, August 3, 2004,4:00 p.m. all the other restaurant businesses downtown. He offered suggestions for venting the smoke (on file in the City Clerk's Office). Noun Eggin.Old Country Deli applicant,gave the history of the business and stated that he is happy to comply with the City's permit process. He believes he has been complying with City regulations. He uses a very hot open wood fire that can not be duplicated with gas fire. Tom Hutchings, San Luis Obispo,sees outdoor barbeque smoke as a health issue. Lorraine Phillips,San Luis Obispo, has problems breathing from the smoke across the street from where she works at Foster Freeze. Mary Beth Schroeder,San Luis Obispo, has a problem with the barbeque smoke. Andrew Carter,San Luis Obispo,supports the appellent as the smoke can be a problem. He feels that the City should consider this as a new use at this sight, since the appellent has never been permitted. Mr. Eggen needs time to comply for the venting system. Jim Douglass,Santa Margarita,stated that as an employee of Old Country Deli,that the barbeque is important part of the Downtown and has been written up in travel and living magazines. Mallory Wright, San Luis Obispo,stated that Old County Deli wins awards,and that altering the barbeque would change the quality and flavor of the food. Jules Rogoff,San Luis Obispo, property owner across from street from the deli stated that the smoke is not a problem to his property and that Mr. Eggin has been a good neighbor. Willow Walking Turtle,San Luis Obispo,concerned about health problems caused by the barbeque smoke,that special areas for barbeque should be designated. Paul Brown,San Luis Obispo,stated that he understands the extra need associated with BBOing on Thursday night and that the appellent uses the restaurant for extra cooking space. He suggested an indoor wood burning facility. Mayor Romero closed the public hearing. ACTION: Moved bySettlelEwan to adopt Resolution-No..9597(2004 Series), denying the appeal, and upholding the Planning Commission action to approve the Use Permit to allow the outdoor barbeque, based on findings,and subject to conditions, and amended to include a venting system added within a year and approved by the Community Development Director,at which time the use permit will be evaluated, motion carried 5:0. COUNCIL LIAISON REPORTS Mayor Romero provided information to the Council regarding the City of Paso Robles participation in the Nacimiento Water Supply Project(memo on file in the City Clerk's Office). Council Member Ewan reported on the July 28th Air Pollution Control District(APCD) meeting(memo on file in the City Clerk's Office). �I/O City Council Meeting Page 11 Tuesday,August 3,2004,4:00 p.m. Council Member Mulholland reported on the July 8th Mayor's Advisory Body Chair Quarterly meeting and the July 28th Economic Vitality Corporation (EVC) Board of Directors meeting. COMMUNICATION Mayor Romero reported on the July 28th meeting with the Corps of Engineers regarding Salinas Dam (memo on file in the City Clerk's Office). There being no further business to come before the City Council, Mayor Romero adjourned the meeting at 1:00 a.m.to Tuesday,August 17,2004 at.7:00 p.m.in the Council Chamber,990 Palm Street,San Luis Obispo. Diane Reynol s, qM.C. Deputy City Cletkj APPROVED BY COUNCIL: 8/17/2004 dr