HomeMy WebLinkAbout04/06/1993, 8 - (1) REQUEST TO EXEMPT CONSTRUCTION OF A CAR DEALERSHIP AT 12350 LOS OSOS VALLEY ROAD (NEAR AUTO PAR MEEn G D
city of San LUIS OBISPO
COUNCIL AGENDA REPORT ITEM NUMBER:
FROM: Arnold B. Jonas, Community Development Director /lo
BY: Glen Matteson, Associate Planner
SUBJECT:
(1) Request to exempt construction of a car dealership at 12350
Los Osos Valley Road (near Auto Park Way) from the water
allocation/offset requirement.
(2) Request to waive capital facility fees for water, sewer, and
a traffic signal.
CAO RECOMIKENDATION:
(1) By motion, rescind the previous policy to not consider
individual exemption requests;
(2) Adopt resolution ("P") determining that the Spring Toyota
request is categorically exempt from environmental review as
a minor change to land-use regulations, and approving the
retrofit-exemption request, subject to confirmation, prior to
issuance of a building permit, that quantity and quality of
water will be adequate for intended uses.
(3) By motion, deny the request to waive fees, while acknowledging
that the full water facility fee would not be charged if the
project is supplied entirely by an on-site well.
BACKGROUND
Situation/Summary
To reduce construction cost for a proposed vehicle dealership, the,
owner is asking the City Council to exempt the project from a code
requirement to retrofit for water savings (letter, Attachment # 1) .
Approving the request requires a Council policy to be rescinded.
Water from a private, on-site well appears to be adequate, but may
require special treatment to meet health standards. The general
plan encourages vehicle dealerships to relocate from downtown to
the Auto Park Way area; it also requires water demand and supply to
be balanced.
The applicant is also asking the Council to waive certain fees,
which help pay for public facilities. There is no procedure to do
so, and doing so would raise serious equity questions. However,
approving the well exemption would allow the applicant to avoid
paying nearly all of the water fee.
Owner: S.L. Land Company
Applicant: Spring Toyota (John Frangie)
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11M%JJJIIIJJ�JWI N city of san lois osispo
Mtge COUNCIL AGENDA REPORT
Representative: Brian Starr, Studio Design Group
Zoning: C-S-S -
Land Use Element map: service-commercial/light-industrial
Environmental status: Staff found categorically exempt as a
minor change to land-use regulations
Action deadline: State law appears to set a deadline of six
months following receipt of a complete proposal,
which would be September 18, 1993, at the earliest.
Due to his lease provisions, the applicant needs a
response much sooner.
General plan
The general plan Water & Wastewater Management Element establishes
City policy concerning water use, conservation, and development of
new sources. Groundwater is an important concern, because it is a
shared resource which none of the users, including the City, can
control. According to the water element, "The City does not
encourage but may consider wells to provide domestic water for a
private development within the city. . . Such wells may be used only
when:
A. The City Council approves the well proposal as part of a
specific land-development project approval, and the proposed
well system meets -all City standards;
B. A qualified, independent hydrological investigation
demonstrates that the well(s) reliably can provide sufficient
quality and quantity of water for the proposed land-
development project.
C. The owner or developer financially guarantees any
treatment system required. for the well water to meet state and
federal standards and any cost of future connection to the
City water system. (Users of the well water would bear
additional costs of treatment. )
D. The well-water distribution system or a separate system is
designed and constructed, or a separate system is provided, to
eventually be connected to the City water system. "
City code
City code does not prevent a property owner from using an on-site
well for any purposes allowed under County and State health
standards. (A recent commercial project on Prado Road, in fact,
does supply all its needs this way. ) City code does regulate basic
plumbing and electrical features of wells. The City does not
regulate groundwater withdrawals.
V r�
city of san lues oBispo
aiis COUNCIL AGENDA REPORT
The City's Water Allocation Regulations are intended to balance
long-term demand and reliable supplies. Currently, they do not
allow issuance of building permits for projects which would
increase demand for City water. A project is presumed not to
increase City water demand, and is therefor exempt from the limit,
if:
The project replaces a structure or facility having
substantially the same type of use and size, or equal or less
water use, . as determined by the Community Development
Director.
This is a vacant site.
- The project "is provided with its own water supply which is
approved by .the city. "
The applicant proposes to do this.
- The structure "through retrofit of permanent water-saving
devices reduces use of city water in existing structures or
facilities by an amount equal to at least twice the estimated
water use of the proposed development, as determined by the
Community Development Director . . . "
The applicant does not want to do this.
Council policy
On June 6, 1991, by minute action, Council set policy that the City
will not approve use of a private well, or dedication of a well to
the City, to make a project exempt from needing a water allocation
or from the requirement to retrofit. The .policy was based on the
conclusion that the availability of groundwater in adequate amount
and quality cannot be assured, considering recent problems with
well failure and .contamination. This policy gave staff the
discretion to reduce the amount of allocation or retrofitting, to
the extent that well water would supply nonessential uses. (The
Prado Road project mentioned above completed an offset for indoor
water usage before a building permit was issued. )
If the applicant used the well for landscape irrigation and vehicle
washing, staff could reduce the amount of required offset from 2. 12
acre-feet to 1.48 acre-feet. The lower amount is approximately the
offset required for a house on a large lot. Any change that will
permanently reduce city water usage is eligible for credit. As an
example, this amount could be achieved by .retrofitting 25 one-
bathroom dwellings or motel units, replacing 5-gallon toilets with
1.5-gallon toilets. This type of retrofit would cost about $4,000
to $5, 000.
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1111atigiiwlU city of san gals OBIspo
COUNCIL AGENDA REPORT
In the 1991 policy, Council further stated that it would not
consider individual requests for well-water exemptions, pending the --
end of the drought and the completion of a groundwater study.
Reservoir and groundwater levels indicate that the drought is over.
However, conservation measures are still important. The recent
rains have not changed the basic relationship between pre-drought
water usage levels and the amount of supply which the City can
count on during a drought.
A groundwater study has been completed. It found a short-term
overdraft of the groundwater basin, and identified a potential for
withdrawals based on more effective groundwater recharge. The
current Annual Water Operations Plan provides for annual
groundwater usage of 500 acre-feet, considerably lower than the
maximum amounts pumped during some years of the drought.
It appears that the well can supply a quantity of water far in
excess of the needs of this project.
The City Utilities Department and the applicant have discussed
using the applicant's well as part of the City water supply system.
This discussion ended because:
- The well is too close to Prefumo Creek to meet State standards
for municipal water supply systems;
- It would draw from the same aquifer as nearby City wells;
- Wells in the vicinity have been contaminated by nitrates and
cancer-causing solvents. While these contaminants can be
removed by proper treatment, the expense appeared unjustified
for. City usage. (The applicant may find that the expense of
treatment for private usage, which may have lower standards,
is justified. )
Environmental review
Staff has determined that the request is categorically exempt from
environmental review as a "minor alteration to land-use
limitations, " similar to a setback exception (Guidelines Section
15305) . The vehicle dealership itself was the subject of an
initial environmental study, and was granted a negative
declaration. Development of the private wellwas not subject to
City environmental review, since the City's approval authority was
merely ministerial. (In this situation, "ministerial" means a
project meeting standards must be approved, . while a project not
meeting standards cannot be approved. )
84
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SIM ,= COUNCIL AGENDA REPORT
Fees
City code requires the applicant to pay the following fees:
- Water facilities, $10,510;
- sewer facilities, $8,870;
- Water meter, $367.
The City's requirements, as applied to this project and others, are
intended to assure that those who benefit from City investments or
who use shared City resources make reasonable contributions to
supporting them. In attempting to run the City in a businesslike
way, water and sewer services are funded by users as an enterprise,
rather than by taxpayers as a whole through the general fund.
There are no established criteria for Council in deciding to waive
fees. Doing so would raise many questions of equity and
consistency. However, if the project is supplied entirely by an
on-site well (except for availability of City water for fire
sprinklers) , the water facility fee would not need to be paid.
The only water connection expense may be a nominal amount for a
fire line. Water usage charges also would be avoided. The sewer
facility fee and usage charges would still be paid. The net effect
of using the well to supply all uses (except fire protection) would
be to reduce water and sewer fees from about $19,747 to about
$9,237.
A condition of project approval requires the applicant to pay
$5, 000 toward the cost of traffic signals on Los .Osos Valley Road
near the Highway 101 off-ramps, at the southerly extension of Calle
Joaquin. The City paid about $115, 000 as its share of these
traffic signals. The County and other development projects in the
vicinity have contributed to the signals, which are estimated to
cost about $200,000.
ALTERNATIVES
Besides the recommended action, the Council may do the following.
Concerning the policy of considering water supply exemption
requests:
- Not rescind the policy of not considering individual exemption
requests, and not further consider this one.
Concerning the retrofit exemption request itself:
Adopt a resolution to approve the retrofit-exemption request
subject to different findings and conditions;
8�5
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COUNCIL AGENDA REPORT
- Adopt a resolution. to deny the retrofit-exemption request;
- Continue action, with direction to staff.
Concerning the request to waive fees:
If the Council wants to consider fee waivers, continue action
with direction to staff to bring back ordinance changes
establishing procedures and criteria for fee waivers.
OTHER DEPARTMENT COMMENTS
From administration's point of view, the relocation of Spring
Toyota to the new location meets a City goal of consolidating auto
dealerships along Los Osos Valley Road. Mr. Frangie has stated
that, from his point of view, the costs of doing so have become
excessive. He has cited that "fee waivers" are being offered to
auto dealerships by other communities. While staff is not
recommending such waivers, staff does recommend some flexibility on
the use of the well, which would result in a lower water connection
fee. The utilities, public works, and finance departments, and the
city attorney, concur with the recommended action.
PUBLIC PARTICIPATION
There is no requirement for general-public or advisory-body
involvement in this particular request prior to Council action, and
none has occurred.
FISCAL IMPACTS
There will be no direct general fund impacts from any of the
alternative actions. Since staff does not know the attractiveness
for the applicant of the applicant's location and water-supply
options, it would not be proper for staff to speculate on indirect
cost or revenue impacts. The recommended action will not
significantly change the cost/revenue relationship for utility
funds.
RECOMMENDATION
(1) By motion, rescind a previous policy not to consider
individual exemption requests, and adopt a resolution (A)
determining that the request is categorically exempt from
environmental review as a minor change to land-use regulations
and (B) approving the retrofit-exemption request, subject to
confirmation, prior to issuance of a building permit, that
quantity and quality of water will be adequate for intended.
8��
11141II1�2��1 city of san'wis oBispo
NNGs COUNCIL AGENDA REPORT
uses.
(2) By motion, deny the request to waive fees, while acknowledging
that the full water facility fee would not be charged if the
project is supplied entirely by an on-site well.
ATTACHMENTS
1. Letter from John Frangie
2. Draft resolution "P" approving retrofit exemption request
3 . Draft resolution "D" denying retrofit exemption request
GMASPRWL.CAR
8-7 .
SPRING TOYOTA
March 11 , 1993
Ms. Peg Pinard JiE c E 1 V a
Mayor
City Hall MAR 1 81993
990 Palm Street cmOFslw,.u�s
San Luis Obispo, CA 93401 ' '"mcev��ce
Dear Peg,
I am currently trying to obtain a building permit as quickly as
possible to build a new Toyota facility on Los Osos Valley Road. I
have a well that will produce far in excess of any water the operation of
my facility will require. I plan to use the water from my well
exclusively. I need to begin building as soon as possible if I
am to build in the City of San Luis Obispo..
I would like to formally request that I be allowed to be
exempted from the -"retrofit" program and having any hook-up with
the City water.
I have not renewed my current lease in the downtown area and must
have completion of a new facility by the. end of this year. I have gone
way out of my way to stay within the City Plan. I purchased the land
on Los Osos Valley Road and paid over $400,000 more than another
location to accommodate the City Plan. I have agreed to a geological
study and a foundation that have added over $300,000 to the cost of
building this facility in San Luis Obispo. This project has escalated
in cost far beyond the original estimate for building. I cannot
continue to justify additional costs.
Please assist me in getting the fees and "retrofit" requirement
waived. Feel free to call me if you need additional information
regarding the project or my intentions to build. Again, time is
most important if I am to build in the City of San Luis Obispo.
Sincerely,
John S. Frangie
President
cc: Mr. John Dunn
City Administraor 1'.A R 1 1993
CITY CO:JSF/ppi�.
1144 HIGUERA STREET 9 SAN LUIS OBISPO, CA 93401 0 PHONE, (805) 543-7� /
f
RECEIVED
SPRING TOYOTAFEB9 Nj
��Rl'OEVELOf+MEtT
February 15, 1993 FEB 1 b 199,1
Mr. John Dunn
City Administrator' k_a.!tsTA;'TiON
City Hall SF-:LU;s 08rSPO,cc
990 Palm Street
San Luis Obispo, CA 93401
Dear Mr. Dunn,
I have made application to the .City of San Luis Obispo for
a building permit for the new Toyota facility we have been working
on for years. We are following the General Plan of the City of San
Luis Obispo by building in the Auto Park on Los Osos Valley Road -
moving from the downtown area.
The Community Development Department has given us several pre-
requisites to be-met prior to issuing a building permit. I want to
complete this facility as soon as possible so I need to ask. your ^ `
assistance with these requests. r. -
Please issue a water allocation based on a trade-out of water
from the property. We will trade 1 .48 acre-feet of water for the water
allocation rather than the offset retrofit requested.
I do not feel I should be required to pay for the traffic light
on Calle Joaquin. The facility is not located such that the light will
be caused by our building on that location. The other businesses in
the area have not been required to pay for the light. We have been
requested to pay $5,000 prior to issuance of a permit. Mly property
does not even border Calle Joaquin.
We have been advised that $19,747.40 impact fees must be paid
at the time of issuance of the permit. I have enclosed a description
of the fees.
We. have been in business since 1985. Since 1985 we have generated
approximately $150,000,000.00 in sales. Those sales have produced a
large amount of tax revenue for our community. We pay property taxes,
employment taxes, income taxes, surcharges and so on. We are always
in the top ten taxpayers in the City.
We have gone out of our way to purchase property in the location
the City of San Luis Obispo wanted us in and will continue to be a
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1144 HIGUERA STREET 0 SAN LUIS OBISPO, CA 93401 0 PHONE (805) 543-7001
-2-
responsible business and contribute to our community. We have already
incurred many additional fees, beyond the regular permit fees, to be
in compliance with the requests of the City. Our costs for building
in the location the City Fathers planned has escalated above anything
I imagined when I undertook this project. I know most other communities
would be pleased to have our tax generating business. We have been
guaranteed by our manufacturer, Toyota Motor Sales in U.S.A., if we
build this new facility, our allocation of cars and trucks will be
endless. This will generate much more in tax revenues for the City
of San Luis Obispo, if I am allowed to build.
We have employed up to 70 employees. Those employees and their
families depend on our business for support. We provide health care
insurance to them.
We feel we are being gouged now by the fees requested. The building
of this new facility will only contribute more to the community by
creating jobs for people already living in San Luis Obispo as I am
planning on using local contractors.
The entire design and location of this new facility is planned
for the City of San Luis Obispo. We have made costly changes, additions
and deletions to get to the issuance of the building permit. We now
need for the City to recognize our contributions to the community
over the past and the tax revenues and jobs we will .provide in the
future.
We are not creating a new growth problem for the City but..going
along with the City plan and also upgrading existing areas by getting
out of the downtown area. In this tough economic time the building of
this facility only enhances San Luis Obispo and the people that already
live here. It really is time for the City to support business and
the families dependent on that business to live. In turn, many more
tax dollars will be generated for our area; rather than draining the
public coffers.
Please advise me as soon as possible how we can expedite handling
the issues of:
1 . Trade-out water for a water allocation for the site.
2. Waive Impact Fees.
3. Waive $5,000 for traffic light.
Other major businesses have left San Luis Obispo. With attractive
offers from surrounding areas, it makes it difficult to agree to pay
anymore fees to obtain a permit to allow me to continue to generate and
pay even greater tax revenue to the City.
Sincerely,
Jc6n S. Frangie !J
President
cc: Mr. Jeff Jorgensen
JSF/pp 8r10
Ii P lop
Anlmv 19
RESOLUTION NO. (1993 SERIES)
A RESOLUTION OF THE SAN LUIS OBISPO CITY COUNCIL
APPROVING USE OF A PRIVATE WELL TO MAKE
THE SPRING TOYOTA DEALERSHIP EXEMPT FROM
WATER ALLOCATION/OFFSET REQUIREMENTS
The Council of the City of San Luis Obispo resolves as follows:
SECTION 1. Fin in
A. A public hearing has been held to consider a request to approve a private well for
water supply at a proposed vehicle dealership at 12350 Los Osos Valley Road,
thereby malting the project exempt from the requirement to obtain a water
allocation or to provide a water savings offset, pursuant to the Water Allocation
Regulations [S.L.O. Municipal Code Section 17.89.030, in particular part B(4)].
B. Council has considered the report and recommendation of staff.
C. The request is consistent with the general plan Water & Wastewater Management
Element, in particular Policies 3.4, 3.5, and 3.6
D. A well has been developed at the subject site, and the applicant has obtained
required City permits for that well. Usage of the well will be subject to approval
of the County Health Department and the requirements of the State of California.
E. The project will not use a significant amount of ground water.
F. The request is a minor change to land use regulations, as provided in Section
15303 of the State and City environmental guidelines.
G. The Council by motion had established, and has now rescinded, a policy of not
considering individual exemption requests, pending the end of the drought and
completion of a groundwater study.
SECTION 2. Action.
The request is approved subject to the following conditions:
1. Prior to issuance of a building permit without completion of water offset
retrofitting, the Community Development Director must have determined that the
quantity and quality of well water will be adequate for intended uses.
J
Resolution No. (1993 Series)
Page 2
2. If the project is constructed without a connection to City water supply (except for
a fire-protection line) and the project later is proposed to be connected, the
connection shall not occur until all requirements in effect at that time have been
met, including payment of all fees and completion of any required water usage
offset.
3. The project may be connected to the City water supply, without completing a
water usage offset, for fire suppression purposes only (fire sprinklers and on-site
hydrant, if any).
4. The development site shall be provided a water lateral, stubbed to an appropriate
location for a meter, to facilitate any future City-approved connection to the City
water system which may be needed, to the approval of the Utilities Director.
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
1993.
Mayor
ATTEST.
City Clerk
g�o�
Resolution No. (1993 Series)
Page 3
APPROVED:
City Administrative Officer
e
COmmunl Devel 7ent Director
ties Director
GMASPRWL.RES
- S-l3
RESOLUTION NO. (1993 SERIES) any i ng
A RESOLUTION OF THE SAN LUIS OBISPO CITY COUNCIL
DENYING USE OF A PRIVATE WELL TO MAKE
THE SPRING TOYOTA DEALERSHIP EXEMPT FROM
WATER ALLOCATION/OFFSET REQUIREMENTS
The Council of the City of San Luis Obispo resolves as follows:
SECTION 1. Fin in
A. A public hearing has been held to consider a request to approve a private well for
water supply at a proposed vehicle dealership at 12350 Los Osos Valley Road,
thereby making the project exempt from the requirement to obtain a water
allocation or to provide a water savings offset, pursuant to the Water Allocation
Regulations [S.LO. Municipal Code Section 17.89.030, in particular part B(4)].
B. Council has considered the report and recommendation of staff.
C. The Council by motion had established, and has now rescinded, a policy of not
considering individual exemption requests, pending the end of the drought and
completion of a groundwater study.
D. Allowing the requested exemption would cause the normal level of water demand
to further exceed safe yield of supplies available to the City. While the individual
increment is not significant, the cumulative effect of several such exemptions
would jeopardize adequate water service for present and future City water
customers.
E. Complying with the retrofit requirement is not a-hardship and allows reasonable
use of the property.
SECTION 2. Action,
The request is denied.
On motion of seconded by and on the
following roll call vote:
AYES:
NOES:
ABSENT:
84
Resolution No. (1993 Series)
Page 3
the foregoing resolution was passed and adopted this day of
1993.
Mayor
ATTEST:
City Clerk
APPROVED:
City Administrative Officer
o y
Community a elo went Director
ties Director
GMASPR-D.RES
_ i
MEETING AGENDA 8
_.,TE ITEM #
MEMORANDUM
TO: Mayor Pinard and Council Members
FROM: Arnold Jonas, Community Development Director D
DATE: April 5, 1993
SUBJECT: Location Map for Council Agenda Item #8, April 6, 1993
Councilman Romero asked for a location map showing the property proposed for the new Toyota
dealership on Los Osos Valley Road. I felt that other council members would also appreciate
such a map, so one is attached for your information and use.
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