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07/10/2001MINUTES REGULAR MEETING OF THE CITY COUNCIL CITY OF SAN LUIS OBISPO TUESDAY, JULY 10, 2001 -12:00 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, Vice Mayor John Ewan, and Mayor Allen K. Settle City Staff: Present: Ken Hampian, City Administrative Officer; Jeff Jorgensen, City Attorney; Lee Price, City Clerk; Wendy George, Assistant City Administrative Officer; John Mandeville, 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; Paul LeSage, Parks and Recreation Director; Betsy DeJarnette, Assistant to the City Administrative Officer; Neil Havlik, Natural Resources Manager; Michael Clarke, City Biologist; Jill Sylvain, Human Resources Analyst; Whitney Mclivaine, Associate Planner; John Shoals, Associate Planner; and Glen Matteson, Associate Planner INTRODUCTIONS Police Chief Gardiner introduced Police Officers Jeff Booth and John Villanti. Community Development Director Mandeville introduced Sherry Bazzell, Administrative Assistant; Leslie Parsons, Administrative Assistant; and Tyler Corey, Planning Technician. They are the newest staff in the Community Development Department. STUDY SESSION NATURAL RESOURCES PROGRAM AND CITY BIOLOGIST ACTIVITIES. City Administrative Officer Hampian introduced the item. Natural Resources Manager Havlik and City Biologist Clarke presented an overview of the Natural Resources Protection Program, including recent activities and accomplishments. Staff demonstrated the department's new web site and summarized future plans for developing best management plans for open space and developing a Natural Resources Inventory. Public Comments: Allen Cooper. Planning Commissioner, suggested that the City consider implementing a environmental program similar to the one in the City of Santa Barbara and provided relevant information to staff. City Council Meeting Tuesday, July 10, 2001 -12:00 p.m. Page 2 Orval Osborne, Planning Commissioner, asked the NRM staff to provide guidance to the Commission about creek setbacks and preservation. Alice Loh. Planning Commissioner, concurred. Staff indicated that they would be more than willing to assist in that area. Eric Greening, Atascadero resident, expressed a desire for the County to implement a similar program and asked the Council to move with great caution on issues regarding creek setbacks. He also inquired about the City's pending efforts to acquire the Morganti property. Council Member Mulholland reported that the County would soon conduct a public hearing regarding nuisance abatement on the site and encouraged the public to attend. Mayor Settle adjourned to the 6:00 p.m. Closed Session in the Council Hearing Room. CLOSED SESSION CONFERENCE WITH LABOR NEGOTIATOR Pursuant to Government Code § 54957.6 Agency Negotiator: Wendy George Employee Organization: San Luis Obispo Firefighters' Association Local 35213 CONFERENCE WITH LABOR NEGOTIATOR Pursuant to Government Code § 54957.6 Agency Negotiator: Ann Slate Employee Organization: San Luis Obispo Police Officers' Association The meeting reconvened at 7:00 P.M. in the Council Chamber. City Attorney Jorgensen announced that the closed session had been held. PUBLIC COMMENTS Eugene Jud and Leonard Milstein asked to speak to Item C4 (see next page for comments). PRESENTATIONS Santos Arrona, Board Chairperson of EOC, and Biz Steinberg, Executive Director of EOC, provided the presentation. Allison Biggers and Marcie Harris provided additional testimony about EOC programs. I 1 1 City Council Meeting Page 3 Tuesday, July 10, 2001 -12:00 p.m. C1 C2. C3. C4. CONSENT ACTION: Moved by Mulholland/Marx to approve the consent agenda, with the exception of Item C4, as recommended by the City Administrative Officer; motion carried 5:0. MINUTES OF JUNE 19. 2001. ACTION: Moved by Mulholland/Marx to approve the minutes of June 19,2001; motion carried 5:0. ACTION: Moved by Mulholland/Marx to grant final adoption to Ordinance No. 1390 and Ordinance No. 1391 granting franchises to construct, operate, and maintain pipelines to Tosco Corporation and Union Pipeline Company; motion carried 5:0. DOWNTOWN PAVING 2001, SPECIFICATION NO. 90204. ACTION: Moved by Mulholland/Marx to: 1) Award contract of $244,425.60 to R. Burke Corporation for the construction of Downtown Paving 2001. 2) Approve budget amendment request transferring $13,000 from the pavement management account to the downtown paving project account; motion carried 5:0. INTERCHANGE. Council Member Marx pulled the item for further discussion by the Council. Public Comments: Eugene Jud asked the Council to defer action until after the City creates a citywide transportation commission. Leonard Milstein urged the Council to not delay and approve the item. —end of public comments — Brief Council discussion ensued. ACTION: Moved by Ewan/Mulholland to: 1) Approve and authorize distribution of the U.S. Highway 10111-os Osos Valley Road Interchange Request for Proposal. 2) Authorize the City Administrative Officer to award and execute contracts with qualified service providers if the amounts are within budget of $120,000; motion carried 5:0. C5. COLLECTION OF DELINQUENT SOLID WASTE COLLECTION AND DISPOSAL - ACCOUNTS. City Council Meeting Tuesday, July 10, 2001 -12:00 p.m. C6. C7. Page 4 ACTION: Moved by Mulholland/Marx to adopt Resolution No. 9202 authorizing the San Luis Obispo County Assessor to assess the amounts due to San Luis Garbage Company on delinquent accounts for provision of solid waste collection and disposal services as described within Municipal Code Section 8.04.070 as liens against the properties involved; motion carried 5:0. ACTION: Moved by Mulholland/Marx to approve the contract and authorize the Mayor to execute a two -year agreement with Barnett, Cox & Associates for $75,000 per year for the 2001 -2003 fiscal years for public relations services for the Utilities Conservation Program; motion carried 5:0. ACTION: Moved by Mulholland/Marx to grant final adoption to Ordinance No. 1392, motion carried 5:0. PUBLIC HEARINGS 1. HUMAN RELATIONS COMMISSION 2001 -2002 GRANTS -IN -AID. Human Resources Analyst Sylvain and Human Relations Commission Chairperson Wolff presented the report. Council Member Schwartz asked for justification for the recommendation relating to the Easter Seals Lymphedma application. He voiced concern that the City is not a health services agency and wondered why this particular request was being included in the recommendation. He indicated he would support a motion to drop it and put it into a reserve. Human Relations Commission Member Avery reported that the Human Relations Commission felt that there was a need in the community for this type of program and argued that health care is one of several funding priorities of the Grants -in -Aid program. Mayor Settle opened the public hearing. There were no public comments. Mayor Settle closed the public hearing. ACTION: Moved by Mulholland/Marx to adopt Resolution No. 9203 approving recommendations from the Human Relations Commission for Grants -In -Aid funding for 2001 -02 and authorizing staff to develop and execute agreements with each Grants -In -Aid recipient for 2001 -02 as outlined in Staff Report Attachment 2, inclusive of any modifications made by Council; motion carried 5:0. 2. PROMOTIONAL COORDINATING COMMITTEE 2001 -2002 GRANTS -IN -AID. Assistant to the City Administrative Officer DeJamette and Promotional Coordinating Committee Chairperson Newland presented the report. Council Member Marx asked for clarification about the Mardi Gras application. She asked if the parade were to be cancelled, would what happen to the funding. Assistant -City Administrative Officer George reported that the money would go back into the General Fund if the sponsors of Mardi Gras don't do something as an alternative to the parade. An City Council Meeting Page 5 Tuesday, July 10, 2001 -12:00 p.m. alternate event would be reviewed by the Promotional Coordinating Committee prior to funding it, she added. Mayor Settle opened the public hearing. Josephine Crawford, Promotional Director of the San Luis Artists' Gallery, expressed appreciation for funding and reported on the Arts after Dark program. Ann Ream, Executive Director of the SLO Arts Council, also expressed appreciation and reported that the grant funds will go towards the open studio, which has been a very successful program showcasing the work of 150 artists. Mayor Settle closed the public hearing. ACTION: Moved by Schwartz/Ewan to: 1) Adopt Resolution No. 9204 approving the Promotional Coordinating Committee (PCC) recommendations for 2001 -02 Grants - In -Aid and authorizing the City Administrative Officer to execute agreements with each grant recipient as described in Exhibit "A" attached to the staff report, and inclusive of any modifications made by the Council. 2) Authorize the PCC to change its grant application procedures in future years to require new applicants to attend the Grants -In -Aid Workshop that describes application policies and procedures. 3) Re- appropriate $1,400 from the unexpended Grants -in -Aid balance from 2000-01; motion carried 5:0. 3. ANNEXATION AND PREZONING OF 13 (+ / -) ACRES ON THE NORTH SIDE OF AEROVISTA PLACE (ANNX/R/ER 09 -01): 710 AERO VISTA (ARNOLD VOLNY, APPLICANT) FILE NO. 9-01. Associate Planner Mcllvaine presented the staff report and recommendations. Mayor Settle opened the public hearing. Mike Sparrow, Pastor of the Agape Christian Church, urged the Council to leave churches as an allowable use. Staff reported that churches are an allowed use In the Service Commercial (CS) zone. Chuck Crotser, representing the applicant, noted that any allowed use, including churches, would be agreeable to the applicant. John French, resident, indicated that he was not aware of the additional CAO recommendation ( #5) in the staff report. He remarked that he doesn't think that the policy should be implemented until the hearings for the Airport Area annexation are scheduled. Mayor Settle closed the public hearing. City Attorney Jorgensen advised that a large facility for congregating is not likely to be considered compatible with the airport. Once the airport area specific plan is adopted the existing use by the Agape Church would be a non - conforming use, he added, but allowed to continue under the present use permit. Council Member Mulholland voiced opposition because she finds the proposed project to ' be sprawl development and the annexation premature. She argued that there is no benefit to the City and that there has been too much commercial growth. In addition, she commented that she is concerned about having sufficient water for the project She City Council Meeting Tuesday, July 10, 2001 -12:00 p.m. Page 6 expressed support for the CAO's Recommendation #5 relative to an Interim annexation strategy. Vice Mayor Ewan pointed out that the City will have more control over development impacts than if allowed to develop in the County. in addition, the City will receive the tax revenue. Council Member Schwartz agreed and asked staff questions relating to the project design. Associate Planner Mclivaine reported that the project will be reviewed by the Architectural Review Commission. Council Member Marx spoke in support of the eventual business park zoning for this area and said that she views the project as infill and not sprawl. She also commented in favor of the interim annexation policy as proposed by the CAO. ACTION: Moved by Ewan/Marx to: 1) Introduce Ordinance No.. 1393 adopting the mitigated negative declaration of environmental impact (ER 09 -01); prezoning the -13 -acre site C-S-PD (Service Commercial- Planned Development); and adopting the list of allowed and conditionally allowed uses. 2) Adopt Resolution No. 9205 recommending that the Local Agency Formation Commission approve the annexation of 13 acres at 710 Aerovista Place. 3) Adopt Resolution No. 9206 accepting the negotiated exchange of property tax increments for the annexation as required as a prerequisite to any jurisdictional change by the Revenue and Tax Code Section 99. 4) Approve and authorize the Mayor to execute a pre - annexation agreement with the applicant providing for payment of fees consistent with the interim annexation policy. 5) By motion, following approval of this application and the subsequent Cannon annexation, refer the processing of future annexation requests from within the boundaries of the Airport Area to the comprehensive Airport Area Annexation process; motion carried 4:1 (Mulholland). Break called at 8:43 p.m. 4. Associate Planner Shoals presented the staff report and responded to questions from the Council. Mayor Settle opened the public hearing. Mike Cannon. President of Cannon & Associates, provided an overview of the proposed project and identified amenities provided by the design. He proposed a new plan for the gas station (noted as Exhibit E) and presented photographs of a similar project in Rancho Cucamonga. Bill Tuculet, architect, highlighted some of the components including the business park with underground parking, the convenience market, fueling station and carwash. He summarized input received from the Planning Commission and the public, which has resulted in a redesign of the service station. Patty Whelan, representing the applicant, noted that he concurs with all staff recommenda- tions with the exception of under - grounding utilities. She requested that the Council consider not forcing this project to underground along Broad Street until the necessary studies have been done. In addition, she encouraged a City strategy that would include a shared funding arrangement so that this landlord is not hit with the unfair cost of under - grounding. Addressing issues about the proposed service station, she argued that the area 1 1 D City Council Meeting Page 7 Tuesday, July 10, 2001 -12:00 p.m. lacks a service station and that the use is an allowed use for the zone. She also reported ' that a service station has been contemplated at that site for six years. Speaking in support of the prezonina and annexation, and in Particular the service station: Andrew Carter. 1283 Woodside Drive Diane Behn. 5794 Salisbury Paavo Ogren, 1736 Leeann Court Pat and Laura Mullen. 2234 Flora Street Paul Ready. 4816 Bridge Creek Maurice Macare. Atascadero resident (employed at the Creekside Center) William Borqsmiller, resident and business owner at the airport Tom Cantrell resident, urged the Council to provide, in addition to gasoline, more services to citizens. He voiced objection to the "piecemeal" approach to annexation and development and urged the Council not to condition new development to mitigate impacts of previously approved and:built development. Brett Cross. 1217 Mariner's Cove, questioned the necessity of a car wash given concerns regarding water supply. He also stated that the proposed service station is not that unique nor needed and urged the Council to not accept every application that comes along, as it will result in San Luis Obispo looking like every other community in the State. Mayor Settle closed the public hearing. ' Staff responded to questions from the Council. Individual Council comments followed. Council Member Mulholland voiced opposition to the proposed project and annexation. She reported she had received numerous phone calls and emails from citizens who do not want a gas station in that area and explained that she does not feel service stations are necessarily compatible with neighborhoods. Council Member Marx commented that she supports the Planning Commission's recommendation relative to the gas station. She indicated that she does not find the concept to be consistent with the business park designation and proposed that the Council defer any decision to put a gas station at that location until after a decision has been made on the airport area specific plan. She suggested that the car wash be eliminated from the design and noted that she believes it is important to underground utilities on Broad Street. Mayor Settle indicated that he would support the proposed project with the revised design presented by the applicant (Exhibit E). He added that he would be willing to postpone under - grounding electrical utilities as requested by the applicant. Vice Mayor Ewan spoke In favor of the project and encouraged the Architectural Review Commission to work with the applicant to modify the design as proposed in Exhibit E. He asked staff for more information about the condition to underground utilities. Deputy Public Works Director Bochum reported that the City requires under - grounding in projects of a particular size, but recommended because costs are unknown that the developer be given the opportunity to do the analysis as part of the project development. Currently staff is proposing under - grounding and cost sharing in the airport area specific plan, he added. 1 At the request of Council Member Schwartz. Community Development Director Mandeville displayed photos of a project in the City of Rancho Cucamonga similar to what is being proposed by the applicant. Council Member Schwartz proposed that the Council refer the City Council Meeting Tuesday, July 10, 2001 -12:00 p.m. Page 8 project to the ARC and ask that they review the photos and the revised design option presented by the applicant (Exhibit E). ACTION: Moved by SettletSchwartz to: 1) Adopt a Resolution No. 9207 approving the Mitigated Negative Declaration and the associated Mitigation Monitoring Program (Resolution "W). 2) Introduce Ordinance No. 1394 prezoning 7.1 acres C- S-PD (Service Commercial Planned Development) with the remaining 0.5 acres for street right -of -way, and approving the use matrix. 3) Adopt Resolution No. 9208 recommending that the Local Agency Formation Commission approve the annexation of 7.1 acres to the City of San Luis Obispo. 4) Adopt Resolution No. 9209 recommending the tentative parcel map dividing one parcel into five lots for commercial development. 5) Direct staff to complete, and bring to Council for approval, tax- sharing agreements with the County for all land to be annexed; and, 6) direct the Architectural Review Commission (ARC) to develop a site plan and design consistent with Exhibit E (presented by the applicant) and the photographs depicting the design qualities of the Rancho Cucamonga project and to provide for proper screening for.the carwash, and further, to keep under - grounding as a condition of the project, recognizing that if specific cost figures demonstrate that under - grounding would be prohibitive, the applicant can return to the Council with a request for relief; motion carried 3;2 (Mulholland, Marx). BUSINESS ITEMS 5. TOURISM PROMOTIONAL PROGRAM 2001 -03. Assistant City Administrative Officer George presented the staff report. Individual members of the Council spoke in support of the City Administrative Officer's recommendation to not approve a share of the monthly rent for the Visitors Center, as requested by the Chamber of Commerce, and recommended for approval by the Promotional Coordinating Committee. 6. ACTION: Moved by Ewan/Marx to approve the Promotional Coordinating Committee's recommendation to. 1) Approve funding for and authorize the Mayor to execute a two-year contract with the Visitors and Conference Bureau (VCB) for promotional services in the amount of $66,000 for 2001 -02 and $68,000 for 2001 -03 (which are the amounts approved in the 2001 -03 Financial Plan). 2) Approve funding for and authorize the Mayor to execute a two-year contract with the Chamber of Commerce for visitor services In the amount of $85,000 for 2001 -02 and $87,400 for 2002 -03. 3) Approve funding for and authorize the Mayor to execute a two -year contract with the Chamber of Commerce for promotional services in the amount of $38,600 in 2001 -02 and $39,800 for 2002 -03 (which are the amounts approved in the 2001 -03 Financial Plan). 4) Approve funding for and authorize the Mayor to execute an amendment (extending the term for two years) to the contract with the firm of Barnett, Cox & Associates (BCA) for advertising services in the amount of $159,200 for 2001 -02 and $164,000 for 2002 -03 (which are the amounts approved in the 2001 -03 Financial Plan); motion carried 5:0. Associate Planner Matteson presented that staff report. 1 1 1 City Council Meeting Page 9 Tuesday, July 10, 2001 -12:00 p.m. .. ,: }fie Scott Lathrop, Lathrop Capital Group , - (applicant); provided history about the proposed project and explained his desire to provide affordable housing. He reported that he has formed a partnership with Peoples Self Help Housing to help realize his goal of forty units, including ten market rate lots in addition to pr filing much - needed affordable housing. He spoke in favor of moving forward with an interim annexation given the time expected to complete the Orcutt Area Specific Plan. He noted that negotiations with the adjacent property owner (Maddalena) may provide more opportunities for developing affordable housing if the property annexes at the same time. He added that he Is willing to take on the affordable housing requirements on his parcel, but clarified that no formal agreement has been entered into with Maddalena. Mark Wilson, Peoples' Self Help Housing, addressed the need for affordable housing in San Luis Obispo and noted that the partnership with Lathrop will provide the right location for a much needed project. John Knight, RRM design, spoke in support of the request noting that there are very few parcels in San Luis Obispo appropriate for affordable housing. He added that hopes that negotiations with the adjacent property owner will result in complimentary market rate and affordable housing. Jeanne Anderson, Bullock Lane resident, expressed opposition to the proposal because it conflicts with the preliminary specific plan for the Orcutt Area. She objects to the number of units proposed and would prefer to see a greater mixture of housing types. Andrew Carter, Woodside Drive resident, supports the request because affordable housing is needed. Patty Taylor. 3731 Orcutt Road, objects to the proposal because it is outside of the specific plan design process. She recommended that Mr. Lathrop be included in the specific plan design process and urged the Council to ask staff to fast track the plan. Nick Muick, 3731 Orcutt Road, concurred. Tom Cantrell urged Council to stick with the process or change it. Andrew Merriam, 4334 Wavertree (representing three landowners in Orcutt Area), reported that the final draft of the specific plan is complete and nearly ready to receive environmental review. He explained that the property owners want to move forward and there is unanimous agreement that the area should be developed as residential. He added that he is not opposed to the concept proposed by Mr. Lathrop, just the timing. Erik Justesen, RRM Design Group, clarified that the applicant is not asking to be annexed at this time, just be given consideration for moving ahead with the project if the Orcutt Area Specific Plan is not adopted in the near future. He said that they want to develop the site consistent with the goals of the plan but would prefer that the two projects move ahead concurrently. Bill Wilson voiced concern that Sinsheimer School will be negatively impacted because it is already overcrowded. End of public comments- City Council Meeting Tuesday, July 10, 2001 -12:00 p.m. Page 10 Council Member Marx and Vice Mayor Ewan remarked that although they support the concept of creating affordable housing, they cannot support taking this parcel out of a process well underway. Mayor Settle commented that there is such a need for affordable housing and given the pressure from the State to provide affordableflow cost housing, he will support the application. Council Member Mulholland concurred and stressed that her earlier vote to not support piecemeal annexation was because it was commercial development She emphasized that the project is conceptual at this time and that she supports the idea of concurrent planning. Council Member Schwartz stated that that the project.is not appropriate at this time because there aren't sufficient schools in the community to support it ACTION: Moved by Ewan/Marx to encourage the applicant to withdraw the application and to work toward timely adoption of the specific plan and acquisition of resources to support development; motion carried 3:2 (Settle, Mulholland). ACTION: Moved by Marx/Ewan that this item come back to the council in late 2002 if the Orcutt Area Specific Plan has not been adopted; motion carried 4:1 (Mulholland). COUNCIL LIAISON REPORTS Council Member Mulholland reported on the June 27th Economic Vitality Corporation (EVC) board meeting. Council Member Marx discussed the July 10'" Downtown Association Board meeting. Council Member Schwartz provided an update of the June 27'^ Planning Commission annual retreat. COMMUNICATIONS Council Member Mulholland reported that a Nuisance Abatement Hearing on the Morganti property will soon be on the San Luis Obispo County Board of Supervisors agenda. City Clerk Price asked Council to meet on August 3rd at noon to receive a presentation by the County Administratiive Officer on plans for the new County Administration building. In addition she asked that the Council also agree to meet on September 10th at noon to receive a status report on the Airport Area Land Use Plan. Council agreed to set both meetings. Vice Mayor Ewan stressed the importance of moving forward with the sports fields project without delay and encouraged the Council to not reconsider actions relative to the Prado Road alignment There being no further business to come before the City Council, Mayor Settle adjourned the meeting at 12:15 a.m. to Thursday, July 12, 2001 at 4:00 p.m. In the Council Chamber, 990 Palm Street, San Luis Obispo. City Council Meeting Tuesday, July 10, 2001 -12:00 p.m. I APPROVED BY COUNCIL: 8/21/01 I-Pmlc i 1 M City Clerk