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HomeMy WebLinkAbout02-17-2015 MinutesCouncil Minutes City Hall, 990 Palm Street, San Luis Obispo Tuesday, February 17, 2015 Regular and Special Meetings of the City Council CALL TO ORDER A Special Meeting of the San Luis Obispo City Council was called to order on Tuesday, February 17, 2015 at 4:00 p.m. in the Council Chambers, located at 990 Palm Street, San Luis Obispo, California, by Mayor Marx. ROLL CALL Council Members Present: Council Members Dan Carpenter, Carlyn Christianson, Dan Rivoire, Vice Mayor John Ashbaugh, and Mayor Jan Marx. Council Members Absent: None City Staff Present: Katie Lichtig, City Manager, Christine Dietrick, City Attorney, Michael Codron, Assistant City Manager, and Anthony Mejia, City Clerk, were present at Roll Call. Other staff members presented reports or responded to questions as indicated in the minutes. BUSINESS ITEMS 131. 2014 -15 MID -YEAR BUDGET REVIEW - RESOLUTION Interim Director of Information Technology and Financial Planning Stilwell and Budget Manager Lamers narrated a presentation entitled "2014 -15 Mid -Year Budget Review" and responded to Council inquiries. Following discussion, MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY COUNCIL MEMBER CARPENTER, CARRIED 3 -2 (VICE MAYOR ASHBAUGH AND MAYOR MARX VOTING NO), to eliminate funding for Citizens' Revenue Enhancement Oversight Commission (REOC) compensation and direct staff to agendize consideration of amendments to Ordinance No. 1605 to eliminate compensation for REOC. Vice Mayor Ashbaugh noted for the record that REOC members may have applied for the position with the understanding that it was to be compensated and that he opposes the elimination of funding. San Luis Obispo City Council Minutes of February 17, 2015 Page 2 Following discussion, MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY COUNCIL MEMBER CARPENTER, CARRIED 5 -0, to: 1. Receive an update of changes in financial position and revised projections for all funds for the 2014 -15 Fiscal Year. 2. Approve revenue and expenditure changes presented in the accompanying Mid -Year Budget Review document, with the elimination of funding for REOC compensation. 3. Adopt Resolution No. 10598 (2015 Series) entitled "A Resolution of the City Council of the City of San Luis Obispo, California, approving changes to the 2014- 15 Budget, including the approval of supplemental funding requests," with the elimination of funding for REOC compensation. B2. ADDRESSING THE CITY'S LONG TERM COSTS Finance and Information Technology Director Padilla and Interim Director of Information Technology and Financial Planning Stilwell narrated a presentation entitled "Addressing the City's Long Term Liabilities" and responded to Council inquiries. Following discussion, MOTION BY VICE MAYOR ASHBAUGH, SECOND BY COUNCIL MEMBER RIVOIRE, CARRIED 5 -0, to provide policy guidance on prioritizing the City's underfunded liabilities for accelerated payments. Specific direction includes the following: 1. Give priority consideration to accelerated payments to the unfunded pension liability, Other Post Employment Benefit (OPEB) liability, roads infrastructure, and equipment replacement funds (in that order). 2. Return at Strategic Budget Direction with recommendations to allocate portions of available one -time resources to make prepayment to certain long -term liabilities of the City based on the prioritization adopted by the City Council. 3. Develop a Budget Policy for incorporation in the 2015 -17 Financial Plan that reflects this policy direction regarding the use of one -time resources. RECESS Council recessed at 5:05 p.m. San Luis Obispo City Council Minutes of February 17, 2015 Page 3 CALL TO ORDER A Regular Meeting of the San Luis Obispo City Council was called to order on Tuesday, February 17, 2015 at 6:00 p.m. in the Council Chambers, located at 990 Palm Street, San Luis Obispo, California, by Mayor Marx. ROLL CALL Council Members Present: Council Members Dan Carpenter, Carlyn Christianson, Dan Rivoire, Vice Mayor John Ashbaugh, and Mayor Jan Marx. Council Members Absent: None City Staff Present: Katie Lichtig, City Manager, Christine Dietrick, City Attorney, Michael Codron, Assistant City Manager, and Anthony Mejia, City Clerk, were present at Roll Call. Other staff members presented reports or responded to questions as indicated in the minutes. PLEDGE OF ALLEGIANCE Vice Mayor Ashbaugh led the Pledge of Allegiance. PRESENTATION A. PROCLAMATION — WORLD SPAY DAY 2015 Mayor Marx presented a Proclamation to Ira Alpert, representing Feline Network of the Central Coast, proclaiming February 25, 2015 as "World Spay Day 2015." PUBLIC COMMENT Linda White, San Luis Obispo, voiced support for on- campus housing for Cal Poly students, but noted concern about the Cal Poly South Dorm project. Steve Hansen, San Luis Obispo County Medical Society, stated that sixty years ago, San Luis Obispo was one of the first towns to fluoridate its water; read a resolution of the Oral Health Coalition recognizing the City of San Luis Obispo for its public health efforts. M. Robert Bettencourt, representing American Legion Post 66, San Luis Obispo, spoke on the need to address veteran homelessness and support the Housing First Program; suggested New Orleans as a model for programs. Donald Hedrick, San Luis Obispo, voiced concern about the current public distribution methods for Council agendas and staff reports; opined that too much City business is not conducted in regular meetings of the Council. San Luis Obispo City Council Minutes of February, 17, 2015 Page 4 Michelle Tasseff, San Luis Obispo, commended the new design of the City's website. CONSENT AGENDA Donald Hedrick, San Luis Obispo, voiced objection to allowing a second reading of an ordinance under the Consent Calendar; stated that Item C5 should be agendized instead as a Business item. MOTION BY VICE MAYOR ASHBAUGH, SECOND BY COUNCIL MEMBER CHRISTIANSON, CARRIED 5 -0, to approve Consent Calendar Items C1 through C6. C1. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES MOTION BY VICE MAYOR ASHBAUGH, SECOND BY COUNCIL MEMBER CHRISTIANSON, CARRIED 5 -0, to waive reading of all resolutions and ordinances as appropriate. C2. MINUTES OF THE CITY COUNCIL_MEETINGS OF DECEMBER 16.2014 AND JANUARY 6, 2015 MOTION BY VICE MAYOR ASHBAUGH, SECOND BY COUNCIL MEMBER CHRISTIANSON, CARRIED 5 -0, to approve the Minutes of the City Council meetings of December 16, 2014 and January 6, 2015, as amended. C3. ACCEPTANCE OF EQUIPMENT FROM MID -STATE INSTRUMENTS MOTION BY VICE MAYOR ASHBAUGH, SECOND BY COUNCIL MEMBER CHRISTIANSON, CARRIED 5 -0, to authorize the Police Department to accept a donation of night vision equipment from Mid -State Instruments for use during patrol and special operations. C4. CONTRACT EXTENSION WITH FINANCIAL CREDIT NETWORK FOR DEBT COLLECTION SERVICES MOTION BY VICE MAYOR ASHBAUGH, SECOND BY COUNCIL MEMBER CHRISTIANSON, CARRIED 5 -0, to approve the extension of the existing agreement with Financial Credit Network for a two -year period ending on July 13, 2016. C5. ORDINANCE NO. 1612 (SECOND READING) — CODE AMENDMENTS TO PROVIDE FOR A STREAMLINED PERMITTING PROCESS FOR SMALL RESIDENTIAL ROOFTOP SOLAR SYSTEMS AND EXEMPTING CERTAIN RAINWATER CATCHMENT SYSTEMS FROM PLUMBING PERMITS MOTION BY VICE MAYOR ASHBAUGH, SECOND BY COUNCIL MEMBER CHRISTIANSON, CARRIED 5 -0, to adopt Ordinance No. 1612 (2015 Series) entitled "An Ordinance of the City Council of the City of San Luis Obispo, California, amending Title 15 of the Municipal Code by adding Chapter 15.14 to provide an expedited, streamlined permitting process for small residential rooftop solar systems; amending Title 15 of the Municipal Code by amending Chapter 15.04 to exempt certain rainwater catchment systems from permits." (Intro. on 02/03/2015) San Luis Obispo City Council Minutes of February 17, 2015 Pale 5 C6. CONTRACT AMENDMENT WITH SAN LUIS COASTAL UNIFIED SCHOOL DISTRICT FOR RELEASE OF PUBLIC EDUCATIONAL AND GOVERNMENTAL ACCESS (PEG) FUNDS - TRANSFER OF PEG ACCESS CHANNEL EQUIPMENT TO SAN LUIS OBISPO COUNTY OFFICE OF EDUCATION MOTION BY VICE MAYOR ASHBAUGH, SECOND BY COUNCIL MEMBER CHRISTIANSON, CARRIED 5 -0, to: Approve, and authorize the Mayor to execute, the Second Amendment to the Agreement by and between the City of San Luis Obispo and San Luis Obispo Unified School District for Release of PEG Access Funds (E- Portion), extending the term of the agreement through August 4, 2018. 2. Authorize the transfer of equipment currently housed at Charter Communications to the San Luis Obispo County Office of Education for the purpose of broadcasting Educational Channel content. PUBLIC HEARINGS PHL MONTEREY HOTEL, A PROPOSED 102 -UNIT MULTI -STORY HOTEL BUILDING WITH ASSOCIATED SITE IMPROVEMENTS (1845/1865 MONTEREY STREET): A. REVIEW OF AN APPEAL OF THE PLANNING COMMISSION'S DECISION TO UPHOLD AN APPEAL OF AN APPROVAL OF AN ADMINISTRATIVE USE PERMIT (APPEAL FILED BY APPLICANT) B. REVIEW OF AN APPEAL OF THE ARCHITECTURAL REVIEW COMMISSION'S DECISION TO APPROVE THE DESIGN (APPEAL FILED BY RESIDENTS OF THE SAN LUIS DRIVE NEIGHBORHOOD) C. ADOPTION OF A MITIGATED NEGATIVE DECLARATION OF ENVIRONMENTAL IMPACT Mayor Marx, Vice Mayor Ashbaugh and Council Members Christianson and Rivoire disclosed their ex parte communications regarding this project. In response to recent public allegations of conflict of interest arising from work done on the project's environmental analysis by spouses consulting planner Jaime Hill and City Natural Resources Manager Bob Hill, City Attorney Dietrick stated that, while the City had yet to receive formal advice from the FPPC, it is the City Attorney's opinion, following review of California Government Code Sections 18702 - 18705, that no disqualifying conflict of interest exists, in that both parties worked in the interest of the City, and have no financial interest in the project's outcome. San Luis Obispo City Council Minutes of February 17,_2015 Page 6 Community Development Director Johnson and Associate Planner Carloni narrated a presentation entitled "1845/1865 Monterey Hotel, File No. 143 -13" and responded to Council inquiries. There was consensus among Council to allow the applicant and appellant each 15 minutes of presentation and rebuttal time total. Mayor Marx opened the public hearing. Andrew Firestone, Applicant, opined that the applicants have maintained good communication with project site neighbors and been responsive to their concerns; noted the economic benefits of hotel construction and the importance of choosing infill development over sprawl. George Garcia, project architect, summarized changes that have been made to the proposed project in response to public comment, including the removal of creek - facing balconies and enclosure of the parking structure at ground level; narrated a PowerPoint presentation and showed an aerial video of view from the site; stated that the project is pedestrian and bike friendly. In response to Council inquiry, Mr. Garcia noted the intent to have a living wall or vertical bamboo screen between the project site and adjacent properties. Robert Lucas, representing the appellant, San Luis Obispo, reiterated that Ordinance No. 1130, relating to the zoning of portions of Monterey Street, is the basis of the appeal; voiced concerns related to un- buffered and deficient parking and size and massing of the hotel; stated that approval of the project will set a precedent for projects that are too tall, too large, and inconsistently styled with their surroundings. Angela Soll, Appellant, San Luis Obispo, noted that a Hyatt hotel was previously considered for the site and recommended for denial by staff; noted that Ordinance No. 1130 preserves residential uses; voiced concerns about project height, buffered parking, negative impact upon neighbors, and creek preservation. Ben Griffin, San Luis Obispo, displayed a slide showing the view from his property of a Super 8 motel; voiced concern that the proposed hotel will tower over his residence. Hana Novak, San Luis Obispo, opined that the project as recently revised does not address the issues of size, height and un- buffered interaction between commercial and residential uses; noting that the difference of grade will create the appearance from San Luis Drive of a much taller building; voiced concern that the parking will create creek bank encroachment and erosion. Cindy Vix, San Luis Obispo, commented that preservation of residential atmosphere should take priority over hotel tourism; opined that the City should discourage large, unscreened parking lots and that the project conflicts with Ordinance No. 1130. Wendy Daly, San Luis Obispo, stated that the hotel does not represents the quality of life known by residents of San Luis Obispo; voiced concern relating to the project's mass and lack of cultural elements. San Luis Obispo City Council Minutes of February 17. 2015 _ Page 7 Steve Hansen, San Luis Obispo, spoke on the importance of preserving San Luis Creek, noting the presence or flireafened species in the creek; opined that the project should be either rejected or reduced in size to minimize parking demands and environmental impacts. Linda White, San Luis Obispo, voiced concern about negative impacts upon neighborhood wellness and residential views; suggested that the number of rooms be reduced in order to achieve parking compliance. Bob Tedone, San Luis Obispo, spoke in support of prioritizing neighborhood wellness; noted concern that sound and light from the hotel use will not be sufficiently buffered. RECESS Council recessed at 8:01 p.m. and reconvened at 8:12 p.m., with all Council Members present. Michelle Tasseff, San Luis Obispo, voiced support for the proposed hotel, opining that it would be a welcome addition to south San Luis Obispo; opined that decisionmakers need to consider what is best for everyone, not just immediate residential neighbors. Norman Brooks Smith, San Luis Obispo, asserted that the proposed hotel rooms are too small and there would be insufficient parking; suggested that a smaller, less impactful hotel would be congruent with adjacent residences and businesses. Victoria Kastner, Los Osos, voiced concern about negative impacts upon the neighboring Monday Club, which was designed by California architect Julia Morgan and is being considered for the National Register of Historic Places. Sally Equinoa, San Luis Obispo, commented on the discussion of this project before the Planning Commission and Architectural Review Commission; asserted there was confusion about the difference between the jurisdictions of the two bodies. Wendy Lucas, San Luis Obispo, stated that the residents of San Luis Drive are not opposed to development at the site per se, but want a more appropriate project with fewer building stories. Gene Goldschmidt, San Luis Obispo, voiced concern with size and mass of the project and stated that operable windows could cause negative impacts; opined that property values of the San Luis Drive neighborhood will be reduced. Donald Hedrick, San Luis Obispo, voiced objection to the project, noting impacts to the viewshed and watershed and oversized signage and building height; suggested that solar panels be installed on the rooftop. Carson Britz, San Luis Obispo, concurred with earlier concerns about compliance with Ordinance No. 1130, un- buffered parking, usable balconies and project size and mass; recommended that building height be reduced by one story San Luis Obispo City Council Minutes of February 17, 2015 Page 8 Mary Okimoto, San Luis Obispo, noted concern about negative impacts on the privacy of and quality of life for neighboring residences; stated that she is concerned about lack of government protection of residential uses and considering selling her home. Terry Mohan, San Luis Obispo, opined that the hotel project is out of scale for the neighborhood. Sharon Dobson, San Luis Obispo, recommended that the project be reduced to 64 units and to three stories. Ann Hansen, San Luis Obispo, inquired about the hotel's revenue projections; noted that competing hotels will be located in the downtown and Cal Poly area. Charlene Rosales, Chamber of Commerce, spoke in support of infill projects that improve the tourist corridor and bike and pedestrian connectivity to the downtown; urged Council to approve the project. Paul Rys, San Luis Obispo, voiced support for neighborhood wellness and reiterated that the neighbors would support a less- impactful project in the same location. Mayor Marx invited the applicant and appellant to make their rebuttal statements. George Garcia, project architect, presented additional measures that could be implemented, including additional landscape treatments and increasing the height of the sound wall to 6 -feet; clarified that the windows are operable per building code requirements and that 102 units cannot be created within a three -story footprint. Andrew Firestone, applicant, explained that a three -story building would render the project financially infeasible; stated that projected revenue is based on 80% occupancy. Robert Lucas, representing the appellant, noted that he disagreed with staff s parking counts; stated that sound generated by parking would be an issue for residents. There being no others desiring to speak on this item, the public hearing was closed. In response to public comment, Community Development Director Johnson clarified that the hotel application had been deemed complete before the recent adoption of the Land Use and Circulation Element, therefore the former regulations apply. Associate Planner Carloni clarified that staff confirmed 131 parking spaces exist at the site; reiterated that the site is not within a historic district. Natural Resources Manager Hill and Senior Civil Engineer Hannula responded to Council inquiries about mitigation measures for environmental concerns including stormwater runoff. Mayor Marx noted that the Council's approval of newly -added mitigations would be premature without returning the item for Planning Commission input. San Luis Obispo City Council Minutes of February 17 2015 Page 9 Following discussion, MOTION BY VICE MAYOR ASHBAUGH, SECOND BY COUNCIL MEMBER CIIRISTIANSON, CARRIED 3 -2 (COUNCIL MEMBER CARPENTER AND MAYOR MARX VOTING NO), to adopt Resolution No. 10599 (2015 Series) entitled "A Resolution of the City Council of the City of San Luis Obispo, California, upholding an appeal (fled by the Applicant) of the Planning Commission's decision to uphold an appeal (filed by Robert Lucas) of the Administrative Hearing Officer's approval of an Administrative Use Permit; and denying an appeal (filed by Robert Lucas and Angela Soll) of the Architectural Review Commission's design approval; thereby approving an Administrative Use Permit, a 15% parking reduction, and the design of a four - story, 102 -room hotel project; and approving a Mitigated Negative Declaration of Environmental Impact, as represented in the staff report and attachments dated February 17, 2015 (1845/1865 Monterey Street, File No. 143 -13)," as amended to include the following conditions of approval: 1. The applicant shall work with the Monday Club to coordinate any landscaping or other screening permitted under City policies or regulations to screen the hotel from the Monday Club. The Final Landscaping Plan shall be subject to the final approval of the Community Development Director and Natural Resources Manager. Said Plan shall be consistent with the Secretary of the Interior's Standards for the Treatment of Historic Properties. 2. The applicant shall fully enclose the parking at grade level on the east elevation. Final plans shall be subject to the final approval of the Community Development Director. 3. The applicant shall include additional landscaping at the rear of the property, subject to the final approval of the Community Development Director and Natural Resources Manager. 4. No window openings on the east elevation shall be modified to include balconies or decks, or to expand outside uses. Mayor Marx stated for the record that the project is not consistent with Ordinance No. 1130, sets a bad precedent for Monterey Street, and will negatively impact the neighborhood. LIAISON REPORTS A Council Liaison Report was received from Council Member Christianson. San Luis Obispo City Council Minutes of February 17, 2015 Page I D COUNCIL COMMUNICATIONS Mayor Marx noted the receipt of letters regarding the proposed increase in transportation of crude oil through San Luis Obispo. In response to Council inquiry, Community Development Director Johnson stated that Council adopted a Land Use and Circulation Element policy that the City opposes the transportation of crude oil through San Luis Obispo; City Attorney Dietrick advised that the City's Legislative Platform contains a provision for supporting legislation relating to the safety of cargo transported via rail. There was consensus among Council to direct staff to draft a letter, for the Mayor's signature, to the San Luis Obispo County Planning Commission in opposition to the Phillips 66 Company Rail Spur Extension Project. ADJOURNMENT The City Council adjourned at 10:07 p.m., to Special and Regular City Council Meetings to be held on Tuesday, March 3, 2015 at 4:00 p.m. and 6:00 p.m., respectively, in the Council Chamber, 990 Palm Street, San Luis Obispo, California. APPROVED BY COUNCIL: 03/17/2015