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03/06/2001MINUTES ' REGULAR MEETING OF THE CITY COUNCIL CITY OF SAN LUIS OBISPO TUESDAY, MARCH 6, 2001 - 4:00 P.M. COUNCIL CHAMBER, 990 PALM STREET SAN LUIS OBISPO, CALIFORNIA ROLL CALL: Council Members Present: Council Members Jan Howell Marx, Christine Mulholland, Ken Schwartz, and Mayor Allen K. Settle Absent: Vice Mayor John Ewan City Staff: Present: Ken Hampian, City Administrative Officer; Jeff Jorgensen, City Attorney; Lee Price, City Clerk; Wendy George, Assistant City Administrative Officer; John Mandeville, Long Range Planning Manager; Ron Whisenand, Development Review Manager; Bill Statler, Finance Director; Jim Gardiner, Police Chief; Bob Neumann, Fire Chief; John Moss, Utilities Director; Tim Bochum; Paul LeSage, Parks and Recreation Director; Glen Matteson, Associate Planner, Michael Codron, Associate Planner; Don Wright, Code Enforcement Officer; Gil Truijillo, Asst. City Attorney PUBLIC COMMENT Kevin Brown and Christian Brown voiced objections to recent Council action to approve a parking district for the College Highlands area and suggested modifications. Mayor Settle advised that the new district will be discussed at the March 15`" Student Community Liaison Committee. CONSENT AGENDA C1. COUNCIL MINUTES OF SATURDAY FEBRUARY 3.2001: TUESDAY, FEBRUARY 6. 2001 (CONTINUED FROM 2- 20 -01)' TUESDAY, FEBRUARY 13. 2000 AND TUESDAY, FEBRUARY 20.2001. ACTION: Moved by Schwartz/Marx to waive oral reading and approve as presented; motion carried 4:0. C2. REQUEST FOR PROPOSALS FOR DESIGN OF FOUR CAPITAL IMPROVEMENT PROJECTS: 1) HISTORIC SOUTHERN PACIFIC FREIGHT WAREHOUSE REHABILITATION: 2) GARDEN STREET MAKEOVER; 31 MISSION PLAZA: BROAD STREET "DOG LEG"; AND 4) MORRO STREET BICYCLE BOULEVARD AND INTERSECTION IMPROVEMENTS. Council Member Mulholland pulled this item to recommend that two of the projects, Garden Street and the Broad Street "dog leg" be deferred at this time. She added that while they will beautify, they are not vital to do right away. She also expressed concern about the cost City Council Meeting Tuesday, March 6, 2001 - 4:00 p.m. Page 2 of the Freight Warehouse rehabilitation project. Council Member Schwartz spoke in favor of proceeding with all four of the projects without delay. ACTION: Moved by Softie/Marx to approve the staff recommendations relating to Projects 1 and 3 (Freight Warehouse and Broad Street "dog leg'j; motion passed 3:1 (Mulholland). ACTION: Moved by Marx/Settle to approve the staff recommendations relating to Projects 2 and 4 (Garden Street makeover and Morro Street improvements); motion passed 3:1 (Mulholland). C3. 2001 LEGISLATIVE ACTION PRIORITIES. Council Member Mulholland pulled this item to object to legislation in support of the reuse of biosolids and to recommend an amendment to a federal priority relating to the Salinas Reservoir. There was no support for that amendment. John Moss proposed the addition of the word "safe" as it relates to the two priorities relating to biosolids. Council agreed to the revision. Council Member Schwartz suggested that staff merge two statements under "County Priorities" as they relate to parking. Council agreed to the revision. ACTION: Moved by Settle/Marx to adopt Resolution No. 9159 as revised, establishing legislative priorities for 2001; motion carried 4:0. (Although voting in favor of the motion, Council Member Mulholland stated for the record objections to specific legislative priorities relating to the reuse of biosolids and the transfer of ownership of the Salinas Reservoir). C4. RESOLUTION EXTENDING HEALTH INSURANCE BENEFITS TO DOMESTIC PARTNERS OF CITY EMPLOYEES. ACTION: Moved by Schwartz/Marx to adopt Resolution No. 9160 electing to be subject to Section 22873 of the Public Employees' Medical and Hospital Care Act (PEMCHA), which will enable the domestic partners of City employees to become eligible for health insurance benefits through CaIPERS; motion carried 4:0. C5. AWARD OF CONTRACT FOR DOWNTOWN RESTROOMS (CITY PROJECT 90108). ACTION: Moved by Schwartz/Marx to 1) award contract to Maino Construction Company in the amount of $157,551.00 for Downtown Restroom -City Project 90108 and authorize Mayor to execute contract. 2) Approve transfer of $57,551 from the Unappropriated Balance of the General Fund to the project budget; motion carried 4:0. C6. USE OF PROMOTIONAL COORDINATING COMMITTEE ENHANCED FUNDS FOR SAN LUIS OBISPO COUNTY SYMPHONY. ACTION: Moved by Schwartz/Marx to approve the Promotional Coordinating Committee's recommendation to allocate $6,500 of Enhanced Promotional Funds for a unique marketing opportunity provided by the San Luis Obispo County Symphony during its Spring 2001 East Coast Tour; motion carried 4:0. C7. FINAL ADOPTION OF ORDINANCE NO. 1383 (2001 SERIES) AMENDING THE BENCH MARK SYSTEM DATUM PLANE. 1 City Council Meeting Page 3 Tuesday, March 6, 2001 - 4:00 p.m. ACTION: -Moved by SchwartdMarx to grant final passage to Ordinance No. 1383 (2001 Series); motion carried 4:0. BUSINESS ITEMS 1. ANNUAL REPORT ON THE GENERAL PLAN. Long Range Planning Manager Mandeville and Associate Planner Matteson presented the staff report Public Comments: Michael Sullivan, 1127 Seaward Street, believes the City needs better information on water availability and conservation efforts. He suggested that up -to -date information regarding the City's retrofit program be included in the report He asserted that there are inconsistencies in the General Plan as they relate to the prezoning process for conservation /open space. In closing, he commented that the time is right to consider rezoning the Dalidio property to conservation/open space or agricultural. Tom Cantrell commented that there are some aspects of the General Plan that are not in sync with what's really going on. In particular, the Plan says that new housing should not be in the airport area but there are homes in the airport area. He suggested that the City needs to decide what is an acceptable level of safety and if the Council is planning to overrule the Airport Land Use Plan, then the City needs to change the General Plan. Another example of inconsistency cited relates to encouraging commercial development which he believes is contrary to the General Plan. Finally, the speaker remarked that development will impact schools and the City needs to find a way to deal with that. Any decision to build a school in the Margarita Area is the school district's decision and not the City's, he added. --end public comments— Brief Council discussion ensued about setting a limit for non - residential growth. Council Members Marx and Mulholland voiced support for adopting an ordinance establishing a limitation. Mayor Settle and Council Member Schwartz disagreed. ACTION: Moved by Settle/Marx to accept the Annual Report, and provide direction to staff on items recommended for consideration by the Planning Commission, as follows: Staff directed to monitor the nonresidential growth and report back after the City receives the Airport Land Use Plan (expected in April) or within 6 months; and to approve all other Planning Commission follow -up actions with the exception of initiating an update of the Land Use Element; motion carried 3:1 (Mulholland). In the interim, staff offered to informally provide status updates on nonresidential growth, if requested. Council Member Marx expressed an interest in amending the General Plan as it relates to the Dalidio property. Staff agreed to include, as one of the alternatives Council can consider, the option to initiate a General Plan Amendment for the Dalidio property, when that matter comes back to the Council (tentatively scheduled for Sept 2001). 2. RESIDENTIAL GROWTH MANAGEMENT. Long Range Planning Manager Mandeville and Associate Planner Matteson presented the staff report. City Council Meeting Tuesday, March 6, 2001 - 4:00 p.m. Public Comments: Page 4 Dick Komorowski. 484 Mobil Ave., Camarillo, spoke in support of staffs recommendation to allow DeVaul Ranch South to develop sooner. Michael Sullivan, 1127 Seaward Street, believes that the environment review is subject to CEQA and voiced opposition to some of the assumptions made in the report. He asserted that the report overlooks the potential for "up zoning" and questioned information set for the report relating to the Dalidio property and the Orcutt and Margarita planning areas. He also pondered whether there would be new housing in the Airport area that is not addressed in this report. Hamish Marshall, representing DeVaul Ranch North, voiced support for the staff's recommendations. ---end of public comments— ACTION: Moved by Settle/ Marx to 1) adopt Resolution No. 9161 to amend the schedule for phased development of major residential annexations, allowing the Irish Hills South development to proceed sooner and the Dalidio area to be completed in one phase, and delaying some development within the Margarita and Orcutt areas. 2) Introduce Ordinance No. 1384 to delete an obsolete code provision relating the Residential Growth Management Regulations to the Water Allocation Regulations; motion carried 4:0. Council adjourned to Closed Session at 6:03 p.m. At 7:00 the meeting resumed. CLOSED SESSION ANNOUNCEMENT CONFERENCE WITH LABOR NEGOTIATOR Pursuant to Government Code 54957.6 Agency Negotiator: Bill Avery and Wendy George Employee Organization: San Luis Obispo Firefighters Association City Attorney Jorgensen announced that the City Council received a brief status report and provided direction for future negotiations. PRESENTATION PROCLAMATION RECOGNIZING CALIFORNIA POLYTECHNIC STATE UNIVERSITY HISTORY DAY. Mayor Settle presented a proclamation to Allen Haile who accepted on behalf of the Cal Poly faculty, students, and staff honoring Cal Poly on its 1001 Anniversary. PUBLIC COMMENT Gail Gresham, Big Brothers and Big Sisters of San Luis Obispo representative, asked Council to consider reducing new fees for background checks. The matter was referred to the City Administrative Officer. City Council Meeting Tuesday, March 6, 2001 - 4:00 p.m. Page 5 John Thomas. Mystic Krews, thanked Council for their support of this year's Mardi Gras. He noted that the Krewe is looking forward to working with the City to improve future events. Sifu Kelvin Harrison reiterated claims of harassment and discrimination. Peter Warner, Hanford resident, reported that he was wrongfully barred from the Economic Opportunity Commission homeless shelter. Mary Beth Schroeder, 2085 Wilding Lane, voiced concern about the potential of increased student housing and the possibly of a fraternity house in her neighborhood. She urged construction of more student housing on the Cal Poly campus. PUBLIC HEARINGS 3. APPEAL OF THE PLANNING COMMISSION DECISION TO UPHOLD THE ACTING COMMUNITY DEVELOPMENT DIRECTOR'S DETERMINATION THAT A USE PERMIT FOR A FRATERNITY HAS EXPIRED: 71 PALOMAR STREET (O 186-00). Mayor Settle stepped down due to a potential conflict of interest (owns property in the vicinity). Council Member Schwartz presided. City Attorney Jorgensen provided preliminary advise to the Council relative to hearing and making a decision on this matter this evening, given the two absences. If the Council agrees to proceed, a unanimous decision will be required, pursuant to the City's Charter. If Council proceeds and the Council cannot reach a unanimous decision, Council Member Ewan would be required to listen to tape of the meeting and participate at a subsequent meeting, he added. Discussion ensued regarding the applicantlappellant's request to continue. City Attorney Jorgensen pointed out that the Council has the discretion to grant the continuance or proceed. He recommended that the Council weight the request against any inconvenience to others noticed of the meeting and confirmed that there was no failure on the part of staff to properly notify the public. Council Member Marx asked for a show of hands from those present to participate in the hearing. Many hands were raised and the Council agreed to proceed with the hearing. Acting Community Development Director Whisenand and Association Planner Codron presented the staff report. Also present were Assistant City Attorney Trui'illo and Code Enforcement Officer Wright Questions to staff followed. Council Member Schwartz opened the public hearing. Linden Mackaoui. Delta Tau Alumni /Shareholder and attorney representing the appellant, argued that the current use permit has not expired and disputed the fact that all fraternities granted a use permit are chartered by either Cuesta or Cal Poly. He reported that Delta Tau was never sanctioned by Cal Poly but that it has always been a fraternity, whether recognized or not. The goal of the Alumni Association is to perpetuate the fraternity use of the house. He asserted that members of the fraternity lived in the house until June of 2000, argued that the group meets the definition of "fraternity" and denied that the house had been abandoned for one year. Council questions to the appellant's representative followed. Speaking in support of the appeal: ' Justin McCullom, President of the Association of Student Sandboarders City Council Meeting Tuesday, March 6, 2001 - 4:00 p.m. Ben Arona. Association of Student Sandboarders Ryan Samples, Association of Student Sandboarders Dan Zamora, Association of Student Sandboarders Saeakina in favor of staffs recommendation to deny the appeal. dney Holcomb. Chair for Residents for Quality Neighborhoods Keith Hall, 87 Palomar Bob Moureza, 617 Luneta Drive Lydia Mourenza, 6171 Luneta Greg Stafford, 672 Serrano #6 Ed Sanchez, 82 Palomar Bud Wampler, 10 Verde Drive Todd Beights. 483 Luneta Council Member Schwartz closed the public hearing. Council questions to staff followed. Page 6 Assistant City Attorney Trujillo advised that the Council must make two legal determinations: 1) whether the Association of Student Sandboarders meets the legal definition of "fraternity"; and 2) whether the occupancy of an accessory building constitutes occupancy. He reported that the Council must also make factual determinations in support of the findings in the draft resolution, which include: 1) when was the house vacated; and 2) when was the house reoccupied. In response to inquiry, he said that if the Council revokes the use permit, the current occupants could continue to live in the house and that Delta Tao could apply immediately for a new use permit subject to new conditions. Council discussion followed. ACTION: Moved by Marx/Mulholland to adopt Resolution No. 9162 upholding the Planning Commission's decision, based on additional factual findings; motion carried 3:0. Council Member Schwartz called a break at 8:55 p.m. Mayor Settle returned to the dais and called the meeting back to order at 9:12 p.m. 4. ROADHOUSE MIXED -USE DEVELOPMENT PROJECT (CITY FILE NO CP /R/U /ER 108 -00) (MATT QUAGLINO. APPLICANT). Acting Community Development Director Whisenand indicated that the applicants' had submitted a written request for a continuance (on file in the Office of the City Clerk) and suggested that the Council receive the staff report, open the public hearing, take testimony and then give some direction to the staff as it relates to the applicants' concerns about creek setback requirements. Association Planner Mcllvaine presented the staff report and noted that staff had recently learned that they had made an error in determining the appropriate creek setback. This new information will require the applicant to redesign the project or request a creek setback exception. Questions from Council followed. Council Member Mulholland requested information about anticipated water usage. Mayor Settle opened the public hearing. I 1 71 City Council Meeting Page 7 Tuesday, March 6, 2001 - 4:00 p.m. Carol Florence, representing the-project applicant Covey III, explained that the basis for the ' request for the continuance is language in the creek setback ordinance and staffs original interpretation. She said that there also appears to be a conflict in the amount of fees charged for staff and the Planning Commission to review potential uses. She argued that the applicant paid additional fees for the Planning Commission to look at the potential uses for the mixed use zoning even though that is part of the project description and Is an important component in the analysis. She suggested that this might merit having staff look at the situation. Ms. Florence provided project history and voiced frustration about staff s error in determining the creek setback requirement. She added that she hopes to get positive direction from the Council in order to come back with a project that meets the Council's approval. Council questions followed. Matt Quaglino, applicant, asserted that staff's error in determining the appropriate creek setback was an expensive one for him and pointed out that he will miss the General Plan Amendment process this time. He asked if the Natural Resources Manager could stake the bank and provide some guidance on whether the 35 foot creek setback is really necessary. In addition, he spoke in support of the parking reduction request and offered that he has some opportunities for providing tandem parking. Mayor Settle closed the public hearing. Council Member Marx commented that she would support the 35 foot creek setback requirement and the parking reduction, if there is a bus stop near by. If the error has caused the applicant inconvenience and delay, she hopes staff will work with the applicant to bring this matter back as soon as possible. She also suggested that the design could be revised to provide parking under the building's. Council Member Schwartz agreed that he would have to support the creek setbacks as defined in the ordinance. He suggested that the applicant refine the proposed uses and divide them so that uses proposed for Building B might be different from those in Building A. He suggested that the minimum number of dwelling units be twelve and stated that he would be willing to approve the parking reduction request. He provided other suggestions for improving parking. Council Member Mulholland voiced opposition to the request for parking reduction and objects to the use of the word "infill ". She added that she doesn't see this project as an infill project. Mayor Settle summarized by stating that he hears a majority support for the 35 foot creek setback (which will require revising the site plan), mixed use concept, parking reduction and a desire to create no less than twelve housing units. ACTION: Moved by Marx/Mulholland to continue the matter to a date uncertain motion carried 4:0. 5. APPEAL OF A SIDEWALK CAFE PERMIT FOR MO'S BAR -B-QUE AT 970 HIGUERA STREET (FILE # O 4 -01) (LARRY KOWALSKI, APPLICANT, BRIAN CHRISTENSEN. APPELLANT). Acting Community Development Director Whisenand and Association Planner Mcllvaine presented the staff report. Mayor Settle opened the public hearing. Brian Christianson, appellant, noted objections to a number of conditions of approval, as set forth in the appeal. City Council Meeting Tuesday, March 6, 2001 - 4:00 p.m. Page 8 Matt Quaglino, property owner, urged approval of the sidewalk caf6 permit. Larry Kowalski, applicant, spoke In favor of approval and reported that he was in agreement with all conditions of approval. Mayor Settle closed the public hearing. ACTION: Moved by SchwartziSettle to approve Resolution No. 9163 denying the appeal and upholding the Hearing Officer's action to approve a sidewalk cafe permit; motion carried 4:0. BUSINESS ITEMS CONTINUED 6. REVIEW OF TENTATIVE SPRING 2001 COUNCIL MEETING CALENDAR. Brief Council discussion ensued about the City's policy of not charging a fee for appeals. Staff volunteered to survey comparable cities to determine if they charge a fee for appeals and, if so, how much. Staff will provide this information, along with the recent history of how many appeals have been riled, in an informal memo to Council. There were no public comments. ACTION: Council reviewed and agreed to the tentative schedule of meetings. COUNCIL LIAISON REPORTS Council Member Schwartz gave an update of the North County Water Resources Forum meeting of March 1, 2001 (memo on file in the City Clerk's office). COMMUNICATIONS None. There being no further business to come before the meeting at 11:03 p.m. to Tuesday, March 13, 2001 at Palm Street, San Luis Obispo. Lee Price, City Clerk APPROVED BY COUNCIL: 3120101 LP:dr in joumed the Room, 990 1-1 1