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HomeMy WebLinkAbout08/17/1999MINUTES REGULAR MEETING OF THE CITY COUNCIL CITY OF SAN LUIS OBISPO TUESDAY, AUGUST 17, 1999 - 3:30 P.M. COUNCIL CHAMBER, 990 PALM STREET SAN LUIS OBISPO, CALIFORNIA ROLL CALL: Council Members Present: Council Members John Ewan, Jan Howell Marx, Ken Schwartz, Vice Mayor Dave Romero, and Mayor Allen K. Settle City Staff: Present: John Dunn, City Administrative Officer; Jeff Jorgensen, City Attorney; Lee Price, City Clerk; Ken Hampian, Assistant City Administrative Officer; Arnold Jonas, Community Development Director; Bill Statler, Finance Director; Ann Slate, Human Resources Director; Jim Gardiner, Police Chief; Bob Neumann, Fire Chief; John Moss, Utilities Director; Mike McCluskey, Public Works Director; Wendy George, Assistant to the CAO; Ron Wisenand, Development Review Manager; John Shoals, Associate Planner; Peggy Mandeville, Associate Planner; Pam Ricci, Associate Planner; Keith Opalewski, Parking Manager; Neil Havlik, Natural Resources Manager; John Mandeville, Long Range Planning Manager; Gary Henderson, Water Division Manager PUBLIC COMMENT Deborah Holley. Downtown Association, summarized her written response to a memo received by Council Member Ewan (both memos on file with the City Clerk) regarding the "Spare Change Program" (a fundraising program for the Prado Day Center). Eric Greening asked questions regarding Consent Agenda Item C -2. Water Division Manager Henderson responded. CONSENT AGENDA C1. APPROVE ECONOMIC VITALITY CORPORATION EVC AGREEMENTS. ACTION: Moved by Romero/Marx to 1) approve and authorize the Mayor to execute the 1999 -00 EVC Agreement in the amount of $15,000 for Economic Development Services. 2) Approve and authorize the Mayor to execute the 1999 -00 EVC Sub - recipient Agreement in the amount of $100,000 for Revolving Loan Fund (RLF) Services; motion carried 5:0. C2. CONTRACT WITH HATCH AND PARENT FOR LEGAL SERVICES RELATIVE TO SALINAS RESERVOIR WATER RIGHTS PERMIT. ACTION: Moved by Romero /Marx to 1) approve the contract with Hatch and Parent for legal services relative to the City's water rights permit for Salinas Reservoir for a total compensation not to exceed $30,000. 2) Approve an additional $10,000 for contingencies and authorize the Utilities Director to increase the maximum compensation to include the approved contingency or a portion thereof if additional 1 work is necessary above the current identified scope of services. 3) Approve City Council Meeting Tuesday, August 17, 1999 - 3:30 p.m. Page 2 advancing project funding identified as second year Capital Improvement Project ' funding for this project in the amount of $40,000; motion carried 5:0. C3. CONSIDERATION OF A REQUEST TO ABANDON A PUBLIC WAY BETWEEN 1890 AND 1900 SAN LUIS DRIVE (ARAN 108 -98). ACTION: Moved by Romero /Marc to adopt Resolution No. 8954 with intention to abandon a public way between 1890 and 1900 San Luis Drive, and set a public hearing for September 21, 1999; motion carried 5:0. C4. CHANGE TO CITY /COUNTY LIBRARY JOINT POWERS AGREEMENT. ACTION: Moved by Romero /Marx to approve and authorize the Mayor to execute an amendment to the City/County Library Joint Powers Agreement to continue increased hours of operation on Wednesday evenings for the 1999 -01 fiscal years, in exchange for annual payments of $13,300 and $13,700; motion carried 5:0. C5. EXTENSION OF LEASE AGREEMENT WITH KEN GLICK FOR CITY -OWNED PROPERTY IN STENNER CANYON. ACTION: Moved by Romero/Marx to approve an extension of the existing lease with Mr. Ken Glick for rental of City owned property in Stenner Creek Canyon, for the period September 1, 1999 to December 31, 1999, with provision for the City Administrative Officer to grant one additional extension to April 30, 2000; motion carried 5:0. C6, APPOINTED OFFICIALS' EVALUATION. 1 Council Member Schwartz pulled this item to request a minor amendment. ACTION: Moved by Romero/Marx to approve modifications, as amended, to the evaluation process for Appointed Officials as recommended by Brunner Consulting; motion carried 5:0. C7. PLANS AND SPECIFICATIONS FOR OCEANAIRE MANHOLE AND SEWERLINE. ACTION: Moved by Romero /Marx to 1) approve plans and specifications for "Oceanaire Manhole and Sewerline, Specification No. 90022." 2) Authorize staff to advertise for bids and authorize the City Administrative Officer to award the contract if the lowest responsible bid is within budget; motion carried 5:0. C8. IMPLEMENTATION OF THE REPORTING OF EMPLOYER PAID - MEMBER CONTRIBUTIONS AS ADDITIONAL COMPENSATION FOR DEPARTMENT HEADS AND OTHER MANAGEMENT PERSONNEL. ACTION: Moved by Romero /Marx to adopt Resolution No. 8955 approving the reporting of the value of Employer -Paid Member Contributions as additional compensation for department heads and other management personnel; motion carried 5:0. BUSINESS ITEM 1. RECOMMENDED ENHANCEMENTS FOR THE ART IN PUBLIC PLACES PROGRAM. Assistant to CAO Geo[ge presented an in -depth staff report Council Member Schwartz commented that the staff recommendation is too timid and summarized his memo making City Council Meeting Tuesday, August 17, 1999 - 3:30 p.m. Page 3 an alternative recommendation (on file with the City Clerk). Council discussion ensued. Council Member Schwartz read his proposed substitute motion (see memo). Mayor Settle opened the meeting for public comment. Shelly Stanwyck, Director of Governmental Affairs for the Chamber of Commerce and member of the Task Force, stated that the Chamber supports public art, but is uncomfortable with fees assessed on development for public art. She noted that the committee did not reach a consensus on that recommendation. Ann Ream, President of the SLO Arts Council and member of the task force, supports the recommendations. She noted that the Arts Council is continuing to work with the downtown, the City and Nation in their efforts to link web sites. She added that she supports Council Member Schwartz's recommendation that developers kick in for public art. Eric Greening spoke in support of the staff recommendations and alternative recommendations made by Council Member Schwartz. Jim Sargen, member of the focus group, responded to Council Member Schwartz's memo and emphasized that he was not a proponent for developer's paying for the full cost of the program. He proposed, that instead, the greater community at -large be asked to contribute. He asked the Council to look at other ways to encourage participation rather than by imposing a mandate. Mayor Settle returned discussion to the dais. ACTION: Moved by Marx /Ewan to 1) receive proposals from the Art in Public Places Focus Group and approve the staff recommendations for follow up actions, as modified. 2) Approve the staff recommendation that public art funding in the amounts indicated be included in the following Capital Improvement Plan projects scheduled for 1999-01 fiscal years: Laguna Lake Park Improvements ($10,000), Downtown Restrooms ($10,000), Sinsheimer Park Improvements ($10,000), and Higuera Street Bridge ($33,730); motion carried 5:0. �W PUBLIC HEARINGS 2. REQUEST TO AMEND THE SERVICE COMMERCIAL WITH SPECIAL CONSIDERATION (CSS) ZONING AT 791 ORCUTT ROAD TO ELIMINATE THE PREVIOUSLY APPROVED MASTER LIST OF ALLOWED AND CONDITIONALLY ALLOWED USES. Long Ranae Planning Manager Mandeville presented the staff report. Brief Council questions followed. Mayor Settle opened the public hearing. Garth Kornreich, architect representing the property owner supports the staff recommendation. Mayor Settle closed the public hearing. ACTION: Moved by Romero /Ewan to introduce Ordinance No. 1354 amending the site's CSS zoning to eliminate the previously approved master list of allowed and conditionally allowed uses and adding "wildlife impacts as a result of human activity" as an issue to address as part of the site's Special Consideration zoning; motion carried 5:0. 1 City Council Meeting Page 4 Tuesday, August 17,1999 - 3:30 p.m. 3. PARK -IN -LIEU FEE UPDATE. Finance Director Statler presented the staff report. Mayor Settle opened the public hearing. There were no speakers. ACTION: Moved by Schwartz/Marx to adopt Resolution No. 8956 updating park-in - lieu fees based on an analysis of current market values; motion carried 5:0. 4. SUBDIVISION OF A 14.66 ACRE SITE INTO 46 SINGLE FAMILY RESIDENTIAL LOTS AT THE SOUTH EAST CORNER OF FULLER ROAD AND BROAD STREET (TRIER 166 -98) (CONTINUED FROM JUNE 15. 1999). Long Range Planning Manager Mandeville presented the staff report. Mayor Settle opened the public hearing. Ray Blair, 4300 Broad Street, indicated that he supports the staff's proposed solutions for his prior concerns regarding the property line and the family owned building on Fuller Road, currently within the property line. Staff was requested to be sure that the conditions of approval reflected the agreed upon solutions. Bob Fowler, R.W. Hertel & Sons, commented in favor of the staff recommendation. Ray Blair, speaking once more, revealed concern for the protection of wells on Fuller Road. Mayor Settle closed the public hearing. Council discussion followed regarding preservation of the creek. Bob Fowler. R.W. Hertel, indicated that his company would pay for and install a split rail fence along the creek. Community Development Director Jonas commented that staff's goal is to minimize public intrusion into the creek by consulting with the Natural Resource Manager and planting natural vegetation that will discourage intrusion. Discussion ensued regarding the proposed sidewalk requirement along Goldenrod. CW Administrator Dunn commented in support of preserving the sidewalk on both sides of the street. ACTION: Moved by Settle /Ewan to approve CAO recommendations; motion carried 5:0. ACTION: Moved by Settle /Ewan to adopt Resolution No. 8957 approving the Negative Declaration of Environmental Impact, with mitigation, and approving the tentative map, with conditions, as modified by confirming the retention of sidewalks on both sides, the installation by the developer of a split rail fence along the creek (Goldenrod), to add conditions regarding change in right of way (Goldenrod), attachment 6, and protection of wells, staff to work with Natural Resources Manager Havlik regarding landscaping with direction to include for consideration sycamore trees, as proposed by Council Member Schwartz; motion carried 5:0. Mayor Settle called a five minute break at 5:05 p.m. He reconvened the meeting at 5:20 p.m. COUNCIL LIAISON REPORTS ' ECONOMIC VITALITY CORPORATION (EVC). City Council Meeting Page 5 Tuesday, August 17,1999 - 3:30 p.m. Council Member Schwartz reported that EVC needs to expand its membership and contributions. He also reported that the Union Oil Company will be paying the County of San Luis Obispo $1,000,000 in four annual payments of $250,000 for the oil spills. He noted that sometimes there are overlapping efforts by the EVC and individual cities. COUNCIL OF GOVERNMENTS /SAN LUIS OBISPO REGIONAL TRANSIT AUTHORITY. Vice Mayor Romero reported that the CalTrans Transportation Enhancement Grant of $83,000 has been approved for the undercrossing of the Highway 101 Project. State transportation funds have been allocated to construct the sound wall proposed along Brizzolara. Cal Poly has agreed to continue the Zero Fare Transit Program through the spring of 2000. COG staff is working with the National Park Service to establish signage and designation for the De Anza Trail. He also reported that the COG reviewed current legislative issues and a draft of the 98 -99 annual report. NORTH COUNTY WATER ADVISORY COMMITTEE. Vice Mayor Romero reported on his attendance at the recent North County Water Advisory Committee. COUNCIL BENEFITS. Council Member Marx requested that the Council place the return of unused benefits for Council Members on a future agenda as a discussion item. City Administrative Officer Dunn will forward information and relevant history regarding this matter to Council. SATURN OFFER TO BUILD BASKETBALL COURT. City Administrative Officer Dunn reported on a communication he received from Pat Cusack owner of the local Saturn dealership, who offered to donate a community basketball court to the City. Council referred Mr. Cusack's offer to staff for evaluation. PUBLIC COMMENT Richard Krejsa displayed an overhead transparency outlining a concern he has regarding the impact on the mini -eco system in the Ramona/Palomar Drive area by equipment and debris stored because of the fiber -optic cable system along Foothill Blvd. Staff agreed to look into the matter. PUBLIC HEARINGS 5. REVIEW OF A NEW PRELIMINARY DEVELOPMENT PLAN FOR THE PROPOSED REDEVELOPMENT OF THE CENTRAL COAST MALL SITE (PD 87 -99). Associate Planner Ricci presented the staff report. Mayor Settle opened the public hearing. Andy Trachman, representing the property owner, introduced Vic Montgomery of RRM Design, who provided an overview of the site plan and highlighted key components of the renovation design. He also responded to design concerns and suggestions proposed by Council Member Schwartz. Mr. Trachman reported that MBK has acquired 100% interest of what Mutual of New York owned in the past. Mayor Settle closed the public hearing. City Council Meeting Tuesday, August 17, 1999 - 3:30 p.m. Page 6 ACTION: Moved by Schwartz/Romero to introduce Ordinance No. 1355 approving a negative declaration of environmental impact, and approving a preliminary development plan, based on findings, and with conditions, mitigation measures and code requirements; motion carried 5:0. 6. APPEAL OF THE PLANNING COMMISSION DECISION DENYING USE PERMIT U 28- 99. AND VARIANCE V 28 -99, FOR A MULTI -LEVEL PARKING GARAGE AT THE NORTHERLY CORNER OF PACIFIC AND MORRO STREETS: 860 PACIFIC STREET. Associate Planner Shoals presented the staff report and summarized the key issues of debate: 1) building height exception, and 2) variances for street yards and lot coverage. Council questions followed. Mayor Settle opened the public hearing. Public Works Director McCluskev, appellant, summarized the history of the project and noted that this is the twelfth Council meeting regarding this project. In response to Council inquiry, he demonstrated the net number of new spaces (232). He reported that the addition of office space to the structure design was a result of public input into the design. In support of the appeal, he noted the unique qualities of the project, emphasizing that the City is bound by the purchase and operating agreement with the US Postal Service. He submitted a copy of the agreement to the Clerk for the Record and urged adoption of the CAO recommendation. Fred Sweeney, architect, demonstrated the design by using overhead slides and spoke to the merits of the appeal. He concluded in support of the findings made by staff for the exceptions. City Administrator Dunn read a prepared statement (on file with the City Clerk) in support of his recommendation to deny the appeal and approve the use permit. Mayor Settle called for a break at 8:57 p.m. He reconvened the meeting at 9:15 p.m. and opened the floor for public testimony. Speaking in opposition to the appeal and in opposition to the proposed parking structure expansion: Stephen Peterson Kurt Mammen Stan Ryan Pat Veesart (speaking as the Executive Director of ECOSLO and on behalf of County Supervisor Peg Pinardl Michael Sullivan Richard Lee Gary Fowler Diane Putner, Palodromes Restaurant (who submitted a petition signed by 1,020 individuals in opposition to the parking structure expansion)(on file with the City Clerk) Sarah Christa, Creston resident Brett Cross Sheila Baker Speaking in opposition to the parking structure expansion, cont'd: Laurence Holoate Richard Kreisa Elaine Simer City Council Meeting Page 7 Tuesday, August 17, 1999 - 3:30 p.m. Daniel Wescott Chuck Mendelson Chris Collins Ira Winn, also speaking on behalf of Eugene Jud Brian Christianson Speaking in support of the appeal, in support of approving the use permit and in favor of the garage expansion: Sam Blakeslee Wallace Henry Tom Martin, on behalf of Ted Frank owner of Tom's Toys Mary Mitchell- Leitcher, Soda Works Tom Swem, Downtown Association Parking Committee Chair Jeff Buckingham. Chair of Chamber Issues and Values and Committee Tom Copeland Ron Tilley Ryan Bolt Dave Cox Vice -Chair of the Legislative /Economic Action Committee of the Chamber Mark Shaffer, Director of Ride -On Andrew Merriam Jim Buttery Jesse Norris Debby Nicklas, Chairman of the Board of the Chamber of Commerce Jim Sargen. The Forum on Marsh Vic Montgomery Doug Shaw, owner of the Sanctuary Tobacco Shop Marc Sargen, President of the Forum on Marsh Howard Franklin Mike Spangler (who also submitted a petition signed by 4,250 individuals and a letter signed by 120 -130 business /property owners in support)(on file with the City Clerk) Deborah Holley. Downtown Association Administrator Terry Burrows Dave Garth, Executive Director of the Chamber of Commerce Other public comments: Richard Kranzdorf contended that the Planning Commission did not vote on the adequacy of the Supplemental Environment Impact Report (SEIR), and concluded that therefore it can not be discussed here tonight. He asserted that if the Council votes to approve the EIR this evening when the Planning Commission has not voted on the issue, there will be grounds for legal action. City Attorney Jorgensen advised the Council that the Planning . Commission's role is advisory only and therefore any certification of the EIR/SEIR will be done by the Council. The Council, he added, has a legal obligation and the discretion to certify the document, if they find it adequate prior to project approval. He counseled that because the Planning Commission chose to take no action, that failure to take action does not prevent the Council from certifying the document. William "Bill" Walter local attorney, summarized his comments regarding legal concerns set out in his letter to the Council (on file with the City Clerk). Mayor Settle closed the public hearing and called a break called at 11:35 p.m. The meeting was reconvened at 11:45 p.m. City Council Meeting Page 8 Tuesday, August 17, 1999 - 3:30 p.m. City Attorney Jorgensen prefaced his comments by noting that the letter submitted by William S. Walter. Esq. to the City outlining the legal issues has been entered into the record (on file with City Clerk). He emphasized that the issue before the Council this evening is whether or not the Council can make the necessary findings to approve the variance and use permit. He explained that the City, even though it may exempt itself from the effect of its own zoning regulations, attempted to closely follow its own regulations. (In support of that comment, the City Attorney entered into the record the following cases on point: Sunny Slope Water co. v. City of Pasadena and Bailey v. Los Angeles County). He noted that the City's Zoning Ordinance (see Municipal Code - Chapter 17.60) provides a mechanism for granting exceptions to height and building setbacks, and further, that pursuant to Table 9, Footnote 13, where parking as a principal use is allowed, deviations to existing setbacks and building heights are permitted, upon approval of a use permit. The existing Marsh Street Garage does not meet strict setback requirements, he added, but the allowance was made according to that provision. He clarified that a strong argument can be made that a variance is not required under the City's Zoning Ordinance regulations and forwarded a copy of the report for approval of the original garage to the City Clerk to be included in the record. In conclusion, City Attorney Jorgensen emphasized that there is an important distinction to be made: State law does not apply to charter cities, unless the charter city adopts them. The City of SLO has it's own regulations and they are different, and less strict, than the Government Code ( §65906). If the Council chooses to uphold the appeal and make findings in support of that action, he recommended two modifications to strengthen Findings #1 and #2, as follows: Re: Finding #1: Add: "and d) a significant portion of the site is subject to the constraints of the Post Office Operating Agreement and Purchase Agreement ", Re: Finding #2: Add: "and c) the Parking Structure is a unique type of public use, with unique constraints, which will benefit the general public, and will not set a precedent for other development in the area ". Council comments followed: Council Member Ewan stated that the location is not the right place. While he supports the addition of office space, the project impacts the streetscape. He suggested that the office be pushed back into the structure to allow a landscape zone. Architect Fred Sweeney responded that the design can address the office space and bulb -outs. He noted that if the use permit is approved, the project will still go through the Architectural Review Commission approval process. Council Member Marx asked City Attorney Jorgensen if the Council has already made the decision to site the garage at the location. City Attorney Jorgensen replied that the policy decision was made by the previous City Council. The EIR was done based upon that policy decision, and on the basis of the EIR the City began to negotiate with the property owner to acquire the property. He added that alternatives were also considered on several occasions, in addition to the EIR. Council Member Marx commented that the location is a big consideration for her as a decision - maker. She observed that the Palm Street structure is only 70-80% full, and 30% of the spaces in the Marsh Street are devoted to long -term parking (82 spaces used by employees). She suggested that these long -term parking spaces be moved to Palm Street to free up the spaces on Marsh Street and fully utilize the Palm Street structure. In addition, ' she suggested that the EIR be returned to the Planning Commission for their full review. City Council Meeting Page 9 Tuesday, August 17, 1999 - 3:30 p.m. Vice Mayor Romero spoke in support of the previous Council's decision and pointed out that the decision was made several years ago and verified 10 to 11 times throughout the process. He asserted that parking structures do not create traffic, they reduce it. He argued that the existing Marsh Street structure is often full and that the structure is critical to the needs of downtown. He added that the height exception has precedence in the same block and emphasized that the exceptions proposed can be made because they are for a public purpose. Vice Mayor Romero indicated that he does have some concerns regarding the pedestrian bridge and urged staff to raising it to a provide some safety factor for truck clearance. In addition, he expressed concern regarding vandalism. Vice Mayor Romero also pointed out that the mitigation measure relating to a signal at the Marsh Street/Downtown Centre crosswalk, previously addressed in the EIR, has been eliminated in the SEIR. He noted that the peak hours of the day were not studied and proposed that before the Council takes action on the SEIR, that it eliminate the change to remove the signal. Council Member Schwartz spoke in favor of the recommendation to uphold the appeal and approve the variances and use permit. He asserted that he believes the Planning Commission misread the Zoning Ordinance and argued that public parking is a principal use and that deviations for building height and setbacks are acceptable. Mayor Settle commented in support of constructing the garage at the proposed location. He argued that the Council has the ability to make the exceptions and can make the findings. ACTION: Moved by Romero /Schwartz to 1) adopt Resolution No. 8958 certifying the Environmental Impact Report Supplement (EIRS) as being prepared in compliance with the California Environmental Quality Act (CEQA). 2) Find that the additional proposed property acquisition conforms with the General Plan. 3) Adopt Resolution No. 8959 upholding the appeal and approving use permit U 28 -99, to allow a multi -level parking structure in the Central Commercial (C -C) and Office (0) zones with the building height exception to allow a 44 ft. tall building and a 52 ft. tall elevator tower, a variance to allow a reduced street yard from 15 ft. to 0 ft. for the offices, and a variance to allow 80% lot coverage based on findings and subject to the conditions and code requirements listed in Draft Resolution "B "; motion carried 3:2 (Ewan and Marx). Vice Mayor Romero reiterated his desire to discuss the traffic signal at the Marsh Street/Downtown Center crosswalk. City Attorney Jorgensen suggested that Council give consideration to this issue at another time. The conduit is in and the issue is one the Council can always entertain, he added. ACTION: Moved by Romero /Settle to, prior to approval of the plans and specifications for the parking garage, direct staff to return to the City Council with an updated evaluation of the need for the traffic signal at the Marsh Street/Downtown Centre crosswalk; motion carried 5:0. There being no further business to come before the City C F cil, Mao Settl adjourned the meeting at 12:58 a.m. to Tuesday, September 7,1999 at 7: ryr in / Coun it Chamber, 990 Palm Street, San Luis Obispo. n � Lee Price, C.M.C. City Clerk APPROVED BY COUNCIL: 917199 LP:dr C 1