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City Council Minutes
Tuesday, June 20, 1989 - 7:00 p.m.
PUBLIC COMMENT
Page 2
P.C.1. Ron Bearce suggested alternatives for recycling water in San Luis
Obispo. This item was referred to staff for report.
CONSENT CALENDAR
Moved by Raova /Pinard (5 -0) to approve the consent calendar as recommended by
the City Administrative Officer with the exceptions of C -7 and C -8 as noted.
C -1 COUNCIL MINUTES
Council (5 -0) approved the minutes of Tuesday, May 16, 1989, 7:00 p.m.;
Wednesday, May 24, 1989, 11:30 a.m. to 5:00 p.m.; Thursday, May 25, 1989, 7:30
a.m. to 12:00 p.m.; Monday, May 30, 1989, 1:30 p.m. to 5:30 p.m.; and Monday,
June 5, 1989, 1:30 p.m. to 5:30 p.m., as recommended.
C -2 PLANNED DEVELOPMENT REZONING ORDINANCE - GP /R 1312 (463)
Consideration of giving final passage to Ordinance No. 1148 amending the
zoning map to change the designation from R -2 -S (medium density residential,
special considerations) to O -PD (office /planned development) at 1825 Johnson
Avenue (adjacent to French Hospital); Summit Health, Ltd., applicant
(continued from 5/16/89 and 6/6/89).
Council (4 -1, Councilmember Settle voting no) gave Ordinance No. 1148 final
passage amending the zoning map to rezone 5.5 acres at 1825 Johnson Avenue
from R -2 -S to O -PD as recommended.
C -3 PLANNED DEVELOPMENT REZONING ORDINANCE - PD 1437 (File No. 410)
Consideration of giving final passage to Ordinance No. 1149, amending the
zoning map from medium- density residential (R -2) to medium- density residential
planned development (R -2 -PD) for property located at 3450 Bullock Lane; Don
Hubbard, applicant (continued from 5/16/89 and 6/6/89).
Ordinance No. 1149 (5 -0) was given final passage amending the zoning map from
R -2 to R -2 -PD for property located at 3450 Bullock Lane as recommended.
C -4 AMENDMENT TO BIA BY -LAWS (File No. 471)
Consideration of amending the Business Improvement Association By -Laws to
allow businesses, individuals or institutions outside the downtown business
district with an interest in the BIA to join the organization as voluntary
members at an annual fee.
Council adopted Resolution No. 6630 (5 -0) amending the BIA By -laws
(Eligiblity) to allow for voluntary members as recommended.
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Tuesday, June 20, 1989 - 7:00 p.m.
C -5 EMPLOYER- EMPLOYEE AGREEMENT (File No. 620)
Consideration of giving final passage to Ordinance No. 1147 amending the
Personnel Rules and Regulations.
Council gave final passage to Ordinance No. 1147 (5 -0), amending the Personnel
Rules and Regulations as recommended.
C -6 SENIOR CENTER PROJECT
Resolution No. 6631 (5 -0) adopted approving plans and specs for
"Rehabilitation of Senior Citizen Center in Mitchell Park;" City Plan No. N-
52D; engineer's estimate $145,00.00 without contingencies. Staff authorized
to advertise for bids, and CAO authorized to award contract as recommended.
C -7 TREE REMOVAL (File No. 505)
Council considered a request to amend a condition of Tract 1313 to allow
removal of a Eucalyptus tree at 166 Los Cerroe Drive; David and Karolyn
Chandler, applicants.
Upon general consensus, this item continued indefinitely at the request of
staff (5 -0).
C -8 STATE HIGHWAY MAINTENANCE AGREEMENT
Council considered an agreement with the State of California Department of
Transportation for City maintenance of State Highways 1 and 227 within the San
Luis Obispo City limits.
After discussion, it was moved by Pinard /Raova (5 -0) to adopt Resolution
No. 6632 approving an agreement with the State of California Department of
Transportation for maintenance of state highways within the City as
recommended.
Council directed that the re- routing of 227 be shown in the City's revised
Circulation Element.
C -9 LEGAL CONSULTANT SERVICES
Resolution No. 6633 (5 -0) adopted approving a contract with Lyon & Picquet for
the temporary services of Roger Picquet, former City Attorney, for legal
consultant services, as recommended.
1. COURT STREET PROJECT (File No. 324)
Council considered a request by Councilmember Settle concerning the Court
' Street Project.
Roger Picauet, Legal Counsel, reviewed the agenda report giving background on
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Tuesday, June 20, 1989 -7:00 p.m. 1
the Court Street issue, and commented on the status of the referendum that had
been requested by Councilman Settle to be placed on the November ballot. He
stated that the Superior Court had recently rejected the request by
petitioners backing the original referendum because it failed to comply with
State Law. Although it could not be put on the November ballot under
Elections Code 4017, the Council had the option of fashioning its own
"voluntary referendum ". The Council could also seek input and give another
advisory measure to the voters. He stated that the city had entered into an
agreement with the developer which could put the City of San Luis Obispo at
some risk of legal action should the city place a voluntary referendum asking
for a yes /no vote regarding Court Street on.the ballot.
Councilman Settle then again urged Council to place the issue of the Court
Street matter on the November ballot.
Considerable discussion and questions by other Councilmembers to Councilman
Settle followed.
Mayor Dunin asked for public comment.
Richie Ray Walker, 1850 Royal Way, spoke in support of placing the matter on
the ballot.
Don Smith spoke in support of placing the matter on the ballot.
Mary Beth Schroeder, 2085 Wilding Lane, urged placement on the ballot.
Roy Hanff, 569 Lawrence Drive, stated he was in opposition to the Court Street
project.
Mary Smith, 111 Val Vista, supported placing the measure on the ballot.
Paul Barker, Chorro Street, urged placing the matter on the ballot.
Mary Ann Foster 3061 Johnson Avenue, supported placing the measure on the
ballot.
Melanie Billig, 1416 Mill Street, urged the measure be placed on the ballot.
Marshall Ochvlski, 979 Osos Street, Court Street developer, spoke in support
of the project, responded to some of the earlier comments and urged that the
Council not put the measure on the ballot.
Charles Long, 145 South Street, spoke in support of the project.
Tom Schwem, 1223 Higuera Street, urged against placement of the issue on the
ballot and supported the project.
Keith George, 694 Santa Rosa, Attorney representing the Court Street Project,
spoke in support of the project.
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Tuesday, June 20, 1989 - 7:00 p.m.
Dave Garth, 204 San Luis Drive, Executive Director of the Chamber of Commerce,
urged support of the project and against placement on the ballot.
Bill Thoma, Contractor's Association, spoke in support of the project and
against the placement on the November ballot.
Howard Carroll, 2175 Biddle Ranch Road, supported the project and spoke
against putting it on the November ballot.
Dennis Wheeler, 2432 Flora, spoke in support of the project, and urged the
Council not to put the measure on the ballot.
Jeff Priolo was opposed to putting the measure on the ballot.
Ken Frommelt, downtown businessman, was against putting the measure on the
ballot.
Dodie Williams, BIA Administrator, on behalf of the BIA, urged support of the
project and against putting this issue on the ballot.
Ron Bearce, Director of Concerned Citizens, supported the project.
Mary Hoffman, Brook Street, supported the project.
Mike Spangler, 1779 San Luis Drive, spoke in support of the project.
John French, 3942 Hollyhock, spoke in support of the project.
Sanford Edward, Islay Street, supported the project.
Lynn Cooper, 1774 Southwood Drive, President of the Chamber of Commerce,
supported the project.
Mayor Dunin closed the public portion of the meeting.
After discussion, moved by Pinard /Reiss (4 -1 Councilman Settle voting no) to
deny the request to place a measure concerning Court Street on the ballot.
Motion carried.
Councilman Settle then made a motion to direct staff to draft a charter
amendment to amend the charter provision that provides for synopsis of
ordinances. Motion failed for lack of a second.
9:15 p.m. Mayor Dunin declared a recess. 9:35 p.m. City Council reconvened,
all Councilmembers present.
2. APPEAL - ARCHITECTURAL REVIEW COMMISSION (File No. 407)
Council held a public hearing to consider an appeal by Channel Lumber Company
of an Architectural Review Commission action to conditionally approve
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Council Minutes. Page 6
Tuesday, June 20, 1989 - 7:00 p.m.
appellant's request to remove an existing U.S. Postal Service kiosk located at
773 Foothill Boulevard (Foothill Plaza) subject to the condition that an
equivalent postal facility be provided elsewhere in the center.
Michael Multari; Community Development Director, reviewed the agenda report
with the recommendation that Council accept public testimony this evening and
give any direction they desire to staff, but allow staff an opportunity for
additional time to work with the property owner and to come back to Council on
Tuesday, July 5, 1989.
Mayor Dunin declared the public hearing open.
Paul Ready, 1254 Marsh Street, appellant, questioned several areas of the
staff report, felt it wasn't accurate and urged the Council support the
request to remove the kiosk.
Harold Ruestor, 636 Cuesta Drive, said he collected 200 or more signatures on
a petition urging that Council provide a kiosk be located in this area.
Ed Gingrich, representing Channel Lumber Company, spoke in support of the
removal of the kiosk.
Mayor Dunin declared the public hearing closed.
After brief discussion, it was moved by Racoa /Settle (5 -0) to continue this
item to date certain, Tuesday, July 5, 1989, for additional report. Motion
carried unanimously.
3. PLANNED DEVELOPMENT REZONING - PD 1414 (File No. 463)
Council held a public hearing to consider a request to rezone the Foothill
Plaza shopping center located at 773.Foothill Boulevard from C -N
(neighborhood - commercial) to C -N -PD (neighborhood - commercial- planned
development) to allow for expanded retail uses; Ed Gingrich (Channel Lumber)
applicant.
Michael Multari, Community Development Director, reviewed the agenda report
with the recommendation that Council adopt a resolution denying the amendment
to the Zoning Map to rezone the property at 773 Foothill Blvd.
Mayor Dunin declared the public hearing open.
John Wilbanks, RRM, representing Channel Properties, spoke in support of
rezoning the property.
Roy Hanff spoke in opposition of the rezoning.
Mayor Dunin closed the public hearing. 1
After discussion by Council, it was moved by Settle /Pinard (5 -0) to adopt
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Council Minutes
Tuesday, June 20, 1989 - 7:00 p.m.
Page 7
Resolution No. 6634 to deny the amendment to the Zoning Map to rezone the
property as recommended by staff.
4. MOBILEHOME ASSISTANCE (File No. 428)
Council considered City participation in an assistance program for hardship
cases in Chumash Mobilehome park conversion.
Michael Multari, Community Development Director, reviewed the agenda report
with the recommendation that Council approve, in concept, City participation
in the assistance program and direct staff to develop necessary
contract /documentation and return to Council for final approval.
After brief discussion, moved by Settle /Reiss (5 -0) Council supported City
participation in the assistance program and directed staff to develop the
necessary contract /documentation for final Council approval. Motion carried
unanimously.
5. SUBCONTRACTOR SUBSTITUTION - PARKING STRUCTURE (File No. 89 -02)
Councilman Reiss stepped down to a possible conflict of interest.
' Council considered a request by Madonna Construction Company that the City
allow the substitution by Regional Steel Corporation for Amber Steel Company
as subcontractor for supplying steel in the "Marsh Street Parking Structure",
City Plan No. M -41D.
Dave Romero, Public Works Director, reviewed the agenda report with the
recommendation that Council by motion either consent or fail to consent to
Madonna Construction Co. request after hearing testimony from all parties.
Roger Picguet, City Legal Counsel, reviewed some of the pros and cons of
taking different legal actions. He stated that it is within the Council's
purview to approve this permissive consent allowing Mr. Madonna to substitute
the subcontractor Regional Steel for Amber Steel. who is in Chapter 11, a type
of bankruptcy.
Mayor Dunin, asked for public testimony.
Marty Tangeman, Attorney representing Madonna Construction, 1010 Peach Street,
stated that Madonna Construction Company was not aware that Amber Steel was in
bankruptcy as had been previously charged, and further, that Madonna had
received quotes from both Amber Steel and Regional Steel prior to the time of
selecting Amber Steel as the subcontractor in the bid. Therefore, they were
not "bid shopping" and were only concerned about the liability they would have
should Amber Steel not be able to complete the project.
' Mike Worthing, representing Amber Steel, claimed that Madonna Construction Co.
had received several notices that Amber had gone into a Chapter 11 position.
AMC
City Council Minutes
Tuesday, June 20, 1989 - 7:00 p.m.
Page 8
They stated their bid was in the amount $485,613.00, and it was their
understanding that the substitute contractor Regional Steel, was about
$100,000.00 less. Additionally, that Madonna Construction was not acting in
good faith as they had already hired Regional Steel and that company was
currently working on the project without permission by the City.
Dave Romero, Public Works Director, responded that Regional Steel was being
used, and that the contractor would be fined as set forth in the
specifications in such a situation.
, Manager of Amber Steel, Ventura, urged Council to deny
Madonna's request, urging Council to require Amber Steel on the project.
Nick Pokraiac, 1000 Templeton Drive, contractor, urged support of Amber Steel,
stating they were a good company, did good work, and should be allowed to
continue working on the project.
Ken Moves, Arroyo Grande, spoke on behalf of Amber Steel and the good work
that they have done.
After discussion by Council, and the feeling that additional information would
be needed to verify some of the allegations made during the hearing this
evening, this item was continued for additional report. Upon general
consensus, item was continued to Monday, June 26, 1989, at 12:00 noon.
Request for a fee waiver by ECOSLO was referred to Fire Chief Dolder for
report back.
There being no further business to come before the ouncil, Mayor Dunin
adjourned the meeting to Monday, June 26, 1989, 12 00 0 .
APPROVED BY COUNCIL: 8/1/89+. _
PV:nlo P4 Voges, Ci Clerk
M I N U T E S
ADJOURNED MEETING OF THE CITY COUNCIL
CITY OF SAN LUIS OBISPO
MONDAY, JUNE 26, 1989 - 12:00 P.M.
COUNCIL HEARING ROOM, 990 PALM STREET
SAN LUIS OBISPO, CALIFORNIA
ROLL CALL
Councilmembers
Present: Vice -Mayor Peg Pinard, Councilmembers Penny Rappa,
Jerry Reiss, Allen K. Settle and Mayor Ron Dunin
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