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12/04/2001MINUTES REGULAR MEETING OF THE CITY COUNCIL CITY OF SAN LUIS OBISPO TUESDAY, DECEMBER 4, 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, 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; Ron Whisenand, Deputy Community Development Director; Bill Statler, Finance Director, Jim Gardiner, Police Chief; Bob Neumann, Fire Chief; John Moss, Utilities Director; Mike McCluskey, Public Works Director; Paul LeSage, Parks and Recreation Director; Barbara Lynch, Civil Engineer; John Shoals, Associate Planner; Michael Codron, Associate Planner; Jeff Hook, Associate Planner; Keith Opalewski, Parking Manager; and Wayne Peterson, Contract City Engineer. PRESENTATIONS Kara Smith of The Nature Conservancy presented an update on the mission of the Nature Conservancy and summarized goals for a protection plan for The Hearst Ranch. CONSENT AGENDA John Knight, RRM Design, requested that Item C3 be pulled. (see Item C3 for discussion). ACTION: Moved by Schwartz/Ewan to approve the consent agenda as recommended by the City Administrative Officer; motion carried 5:0. C1. MINUTES OF TUESDAY, NOVEMBER 20, 2001. ACTION: Moved by Schwartz/Ewan to waive oral reading and approve as presented; motion carried 5:0. C2. APPROVAL OF PLANS AND SPECIFICATIONS FOR POLYBUTYLENE SERVICE REPLACEMENTS, SPECIFICATION NO. 90063B. ACTION: Moved by Schwartz/Ewan to: 1) Approve plans and specifications for "Polybutylene Service Replacements Laguna Lake Area, Specification No. 900636." 2) Authorize staff to advertise for bids and authorize the City Administrative Officer City Council Meeting Page 2 Tuesday, December 4, 2001 - 4:00 p.m. to award the contract if the lowest responsible bid is within the project budget. 3) Appropriate $5,000 from unreserved Water Fund working capital; motion carried 5:0. C3. WAIVER OF INCLUSIONARY HOUSING FEES FOR A PROPOSED EXPANSION REMODEL OF MISSION COLLEGE PREPARATORY SCHOOL. John Knight, RRM Design, referenced his letter to the Council and requested that hospitals, particularly Sierra Vista Hospital, be included in the list of organizations that would qualify for exemption from the inclusionary housing ordinance. City Attorney Jorgensen advised the Council that it may only act on the Mission Preparatory School request for waiver. If the hospital wishes to make a separate request, they can do so, he added. Public Comments: George Moylan, Executive Director of the SLO Housing Authority, commented in support of the recommendation as it relates to Mission College Prep. Speaking as a member of the ad hoc committee that recommended the adoption of the inclusionary housing ordinance, he added that the Council has the ability to make decisions as they come up, like this one. He remarked that a point can be made that hospitals protect public health and educate the community and should, therefore, be considered for exemption. Brian Starr, Mission College Prep, indicated that he concurs with the staff recommendation and urged the Council to move ahead given the fact that the building permit will expire January 10, 2002. Plans are in final review now, he added and any delay will postpone the project. ---end of public comments — ACTION: Moved by Schwartz/Ewan to: 1) Determine that the school project is excluded from the inclusionary housing requirement. 2) Confirm the types of organizations that would qualify for exemption from the inclusionary housing requirement; motion carried 5:0. C4. DISPOSAL OF SURPLUS DENSITY TESTING GAUGE. ACTION: Moved by Schwartz/Ewan to adopt Resolution No. 9260 (2001 Series) declaring the City of San Luis Obispo density testing gauge to be surplus and authorize staff to sell the gauge to Maurer Technical Services; motion carried 5:0. APPOINTMENTS APPOINTMENT OF VICE MAYOR FOR THE YEAR 2002. Mary Beth Schroeder, 2085 Wilding Lane, voiced opposition to the appointment of Council Member Marx and urged the Council to appoint Council Member Mulholland instead. Council Member Mulholland referenced the Council policy and voiced support for the appointment of Council Member Marx. City Council Meeting Page 3 Tuesday, December 4, 2001 - 4:00 p.m. ACTION: Moved by MulhollandlEwan to appoint Council Member Jan Howell Marx as Vice Mayor for the term to begin December 2001 through November 2002; motion carried 5:0. Mayor Settle presented a plaque to Council Member Ewan in appreciation for his service as Vice Mayor December 2000 to present. PUBLIC HEARINGS 1. PROPOSED LOT LINE ADJUSTMENT WITH EXCEPTION REQUESTS AND ADMINISTRATIVE USE PERMIT FOR DEVELOPMENT OF FIVE HOMES IN THE R -1 S ZONING DISTRICT (LLA/A/ER 79 -01) MICHAEL VILLAREAL APPLICANT; 2290 SANTA YNEZ. Associate Planner Codron presented the staff report and responded to brief questions from the Council. Mayor Settle opened the public hearing. Sarah Anderson, 392 Santa Maria Avenue, voiced concern about the lack of adequate parking, particularly for guests. She urged the Council to consider a condition of approval that would require guest parking. Tim Croft, Central Coast Engineering (representing the applicant), responded to questions regarding parking and the proposed driveway. He pointed out that parking for secondary dwelling units can be accommodated on the lots and, further, noted that the applicant is willing to make guest parking a condition of approval. Mayor Settle closed the public hearing. Community Development Director Mandeville suggested the following condition of approval: "House plans shall include provisions for guest parking, to the approval of the Architectural Review Commission." Council concurred with the recommended language. ACTION: Moved by Ewan/Mulholland to adopt Resolution No. 9261 (2001 Series), as amended, approving the project with the following components: 1) A lot line adjustment and lot combination with an exception to the Subdivision Regulations for minimum street frontage; 2) A use permit to allow development of five single - family homes, subject to conditions of approval and code requirements; and 3) A Mitigated Negative Declaration for the project; motion carried 5:0. BUSINESS 2. CONSULTANT PRESENTATION ON STATUS OF STREAM MANAGEMENT AND MAINTENANCE PROGRAM FUNDED BY ZONE 9. Contract City Ennineer Peterson provided historical background on flood and stream management programs in the City and introduced the consultants. He explained that the intent of the presentation was to get some initial input on the proposed Plan in the areas relating directly to the City of San Luis Obispo, and further, to receive feedback and City Council Meeting Page 4 Tuesday, December 4, 2001 - 4:00 p.m. comments on areas of the proposed Plan relating to locations outside the City of San Luis Obispo. Jeff Peters and Wes Lauer from Questa Engineering summarized the Draft Waterway Management Plan prepared for the Zone 9 Flood Control District and responded to questions from the Council. Council agreed to receive the entire presentation, but defer consideration of the recommendations to another time, given time constraints. Public Comments: Dave Romero, 2057 Skylark, (speaking as a citizen member on Zone 9) asked the Council to not make decisions tonight because of the serious and expensive nature of the project. He summarized his items of concern, which. include: 1) Priorities of improvements based on cost effectiveness and flood potential; and 2) Recommendations for widening channels, particularly in the area of Foothill Bridge. --end of public comments— Council discussion followed. The consensus was to bring the matter back, with some analysis by staff (including environmental consequences in the way of policies) in early 2002. Council took a break at approximately 6:30 p.m. The meeting reconvened at 7:00 p.m. PRESENTATION Jeff Zimmerman, President of the San Luis Obispo Firefighters' Association Local 3523, presented donations to the Prado Day Center and the Alisa Ann Ruch Burn Foundation. Public Hearings Continued 3. INTRODUCTION OF AN ORDINANCE REGARDING SIZE LIMITATIONS FOR LARGE RETAIL ESTABLISHMENTS. Associate Planner Shoals presented the staff report. Mayor Settle opened the public hearing. Jack Frank, Director of Real Estate Development for Costco, summarized his memo to the Council (on file in the Office of the City Clerk) in which he committed to honor the building size of 138,000 sq. ft. and to design guidelines in accordance with the new ordinance regarding design criteria for large retail establishments. He requested that Costco be exempted from the proposed parking requirements in the draft ordinance because the proposed number of allowable parking stalls is too.low for their operations. Andrew Carter, 1283 Woodside Drive, spoke in support of the ordinance because he believes 140,000 is an equitable size and that it will allow current retailers the room to grow and consolidate. Additionally, he argued in support of a 1:250 parking ratio. City Council Meeting Page 5 Tuesday, December 4, 2001 - 4:00 p.m. Mary Beth Schroeder, 2085 Wilding Lane, asked the Council to disallow big box stores and conserve agricultural land. Dave Romero, 205T Skylark, spoke in opposition to adopting the ordinance and contended that the architectural standards recently approved by the Council will take care of the issues. He voiced opposition to setting a maximum standard for parking because he fears it will impact the neighborhoods. Patricia Wilmore, Chamber of Commerce, also voiced opposition to adoption and argued that design standards in place will suit San Luis Obispo much better than an ordinance. The Chamber wants the Council to consider that a 45,000 sq. ft. limit in the CN zone is not up to industry standards and will hamper existing commercial development. She implored the Council to consider 55,000 sq. ft. as being more reasonable and asserted that a parking ratio of 1:250 for a neighborhood center is not reasonable. C Chuck Crotser, local architect, spoke in favor of the recommendations as it relates to square footage limitations in all the zones and parking ratios. He urged the Council to come up with creative ways to provide parking. Phil Ashley, 1586 La Cita Court, urged the Council to limit the square footage to 120,000 sq. ft. Adrian Dickensen, San Luis Obispo resident, asked the Council to do the right thing for San Luis Obispo and not be afraid of the County. Mayor Settle closed the public hearing. Lengthy Council debate ensued. Mayor Settle spoke in favor of adopting the ordinance with a provision to exempt Costco. Council Member Marx emphasized that the City has no protection now and asked her colleagues to reconsider a 120,000 sq. ft. limitation, with a bonus for two stories, and an exemption for Costco. Council Member Schwartz argued that a 140,000 sq. ft. cap is reasonable for the community and indicated that he would accept the Mayor's proposal to exempt Costco. Vice Mayor Ewan voiced concern about the potential for 10 and one -half acres of the 14- acre site being dedicated to parking and vehicular traffic. He urged compromise and suggested that with a 120,000 sq. ft. limitation (with bonus for two stories), there would be additional opportunities for parking. Council Member Schwartz emphasized creative landscaping for the parking lot. Council Member Mulholland suggested that the Council return to the original concept of 110,000 sq. ft. with the bonus, which was the original Planning Commission recommendation. She added that if the Council desires to consider a pipeline exemption for Costco, then it should do that as a separate motion. Vice Mayor Ewan recommended that the Council approve a 140,000 sq. ft. limit with a 1:200 parking ratio, or a 120,000 sq. ft. limit and the approval of a pipeline exemption. City Council Meeting Page 6 Tuesday, December 4, 2001 - 4:00 p.m. Mayor Settle argued in support of the ordinance as presented by staff, with a modification for parking, as proposed by Costco. ACTION: Moved by Settle/Schwartz to introduce Ordinance No. 1405 (2001 Series), as revised, to print amending the Zoning Regulations to set maximum building size and parking requirements for large -scale retail establishments in all commercial zoning districts, and to include an exception for existing large retail buildings; motion carried 3:2 (Mulholland, Marx). 4. MODIFICATION OF TASSAJARA RESIDENTIAL PARKING PERMIT DISTRICT. Parking Manager Opalewski presented the staff report and noted that six additional properties on South Tassajara are being recommended for inclusion per the request of contiguous property owners (see request on file with the City Clerk). Mayor Settle opened the public hearing. Bud Wampler, 10 Verde Drive, spoke in support of the district. AI Lipper, 585 Luneta Drive, indicated that although he had previously requested not to be included in the district, he would like to be if the Council decides to form one. Bill Winetta, 425 Luneta, also voiced support for the formation of the district. Don Rawlings, 360 Ramona Drive, argued that the formation of the district will only move the problem to his neighborhood. He asked the Council to include his property if it decides . to form the district. Chris Stout, 97 S. Tassajara, asked that more permits be given to property owners to allow more flexibility for guests. Nikola Cimbur, 16 Verde Drive, spoke in support and argued that Ramona Drive should also be included in the district. Hank Carter, 54 Verde Drive, voiced support for the district. He added that the City needs to adopt ordinances that will address problems related to student rentals and illegal conversions. In addition, he said something needs to.be done about the housing shortage and urged the Council to remove the red curbing on Luneta in front of Valencia to allow more parking. Frank Mercy, 195 Ramona, asked the Council to consider. expanding the district further along Ramona. Mayor Settle closed the public hearing. Fire Chief Neumann reported that the red curbing indicates a fire lane and recommended, because the area is congested and serviced a lot by the Fire Department, that the fire lane be maintained. Council Member Mulholland encouraged residents who share concerns about illegal conversions to call the Neighborhood Services Manager. City Attorney Jorgensen clarified that complaints are kept confidential. City Council Meeting Page 7 Tuesday, December 4, 2001 - 4:00 p.m. Public Works Director McCluskey reported that the process followed and the recommended resolution proposes a set and distinct boundary. Staff does not have the flexibility to expand the district, he added, unless properties are contiguous and a majority of the property owners want to be included (as is the case with the six additional and contiguous properties on South Tassajara). Council discussion followed. ACTION: Moved by Marx/Mulholland to: 1) Adopt Resolution No. 9262 (2001 Series) as expanded, establishing a revised residential parking permit district in the South Tassajara area as shown on Attachment 1, Exhibit A with restricted parking seven days a week, either from 10:00 p.m. to 6:00 a.m., or for 24 hours a day, depending on the location. 2) Appropriate $2,000 from the unappropriated parking fund balance for sign and pole installation and purchase of materials to implement the proposed parking district; motion carried 5:0. At 9:12 p.m. Mayor called a break. Resumed at 9:20 p.m. BUISINESS ITEMS 5. CRITERIA FOR AWARDING AFFORDABLE HOUSING FUNDS. Deputy Community Development Director Draze presented the staff report. Council Member Schwartz summarized suggested revisions outlined in his memo to the Council (on file in the Office of the City Clerk). Discussion ensued. Public Comments George Moylan, Executive Director of the Housing Authority, argued that affordable housing funds should only be used for housing and not for the other efforts like the restoration of a historical home, as an example. He urged flexibility because most of the City's housing needs come up at various times during the year. He indicated that he hopes that the Council will allow the Community Development Director the flexibility to bring requests forward as they arise. Mary Beth Schroeder, 2085 Wilding Lane, supports the criteria and the Judson Terrace request for funding (next item). --end of public comments— ACTION: Moved by Schwartz/Marx to adopt Resolution No. 9263 (2001 Series), as amended, establishing a review process and "award criteria" in allocating Affordable Housing Funds, and authorizing the City Administrative Officer to execute funding agreements; motion carried 5:0. 6. REQUEST BY JUDSON TERRACE LODGE FOR A CONTRIBUTION OF $215,000 FROM AFFORDABLE HOUSING FUND. Deputy Community Development Director Draze presented the staff report and recommended approval. Public Comments. Speaking In support of the staff recommendation to approve the request: City Council Meeting Page 8 Tuesday, December 4, 2001 - 4:00 p.m. Ancel Romero, American Baptist Homes of the West Ann Hedwall, President of the Judson Terrace Residents Association Roger Jump, 53 Chuparrosa, Judson Terrace Administrator Dave Romero, 2057 Skylark George Movlan, Housing Authority, pointed out that over two mililion dollars of local funding has already been committed to this project. He cautioned the Council to be careful when allocating dollars from the Housing Fund because it will get spent too quickly. ---end of public comments— ACTION: Moved by Mulholland /Marx to adopt Resolution No. 9264 (2001 series) approving the request for a contribution of $215,000 in Affordable Housing Funds, motion carried 5:0. 7. REQUEST BY SOJOURN INC. FOR A CONTRIBUTION OF $25,000 FROM THE AFFORDABLE HOUSING FUND. Deputy Community Development Director Draze presented the staff report and recommended denial. There were no public comments. ACTION: Moved by Mulholland/Settle to adopt Resolution No. 9265 (2001 series) denying the request for a contribution of $25,000 in Affordable Housing Funds; motion carried 5:0. COUNCIL LIAISON REPORTS Council Member Ewan provided a report on the Economic Vitality Commission. Vice Mayor Marx provided an update on the Economic Opportunity Commission. COMMUNICATIONS Vice Mayor Marx mentioned the possibility of the closure of Pacheco School and concerns shared by the neighborhood about possible impacts. There being no further business to come before the City Council, N@Xor Settle adjourned the meeting at 10:04 p.m. to Tuesday, December 11, 2001 at 4:00 p.m' in a Council Chamber, 990 Palm Street, San Luis Obispo. - r / / Lee Price, C.M.C. City Clerk APPROVED BY COUNCIL: 1/22/02