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HomeMy WebLinkAbout02/19/2002MINUTES REGULAR MEETING OF THE CITY COUNCIL CITY OF SAN LUIS OBISPO TUESDAY, FEBRUARY 19, 2002 - 4:00 P.M. COUNCIL CHAMBER, 990 PALM STREET SAN LUIS OBISPO, CALIFORNIA ROLL CALL: Council Members Present: Council Members John Ewan, Christine Mulholland, Ken Schwartz, Vice Mayor Jan Howell Marx, and Mayor Allen K. Settle City Staff: Present: Ken Hampian, City Administrative Officer; Jeff Jorgensen, City Attorney; Lee Price, City Clerk; John Mandeville, Community Development Director; Bill Statler, Finance Director; Jim Gardiner, Police Chief; Bob Neumann, Fire Chief; John Moss, Utilities Director; Mike McCluskey, Public Works Director; Jeff Hook, Associate Planner; Shelly Stanwyck, Economic Development Manager; Jill Sylvain, Human Resources Analyst and Gary Henderson, Water Division Manager. ' INTRODUCTIONS Fire Chief Neumann introduced Fire Inspector Tracy Bowe. STUDY SESSION 1. Community Development Director Mandeville introduced the item. Associate Planner Hook presented the staff report. Vice Mayor Marx recommended that the City try again for grant funding to assist with the rehabilitation of the Blackstone Hotel. Public Comments: Mary Beth Schroeder. 2085 Wilding Lane, urged the Council to consider rehabilitating the Blackstone and Wineman Hotels. She argued that Cal Poly should provide housing for students on -the campus. Finally, she implored the Council to not mix development in the downtown, but rather keep it for shopping. Tom Swem. President of the Downtown Association, encouraged the Council to review closely the results of the focus group and addressed concerns regarding the downtown core (Subarea A). He encouraged the addition of residences In the downtown but argued that the ordinance will have a "chilling" effect on property owner ability to redevelop or convert. He suggested that the Council give thought to a complete rezoning and then let the public know City Council Meeting Tuesday, February 19, 2002- 4:00 p.m. Page 2 up front what the rules are. in closing, he proposed that Council keep in mind that the downtown core is the place for business and discouraged the over -emphasis on residential use. Steve Barash (representing SLO Property Owners Association) 225 Prado Road, Suite H, asked the Council to create an incentive for affordable rental housing in the downtown. He reported that the Association objects to the formation of a new agency to collect fees and argued that costs to create new affordable housing is too great. He proposed modest upzoning for parts of the City outside the downtown and incentives for constructing higher density units. Deborah Holley. Downtown Association Administrator, recommended that the no net loss policy may be better achieved on a case -by -case basis, rather than by a blanket ordinance. She noted that there are very few opportunities to develop new housing in the downtown and proposed that the Blackburn and Wineman Hotels are perhaps the only opportunities. She reported that the Downtown Association does not feel confident that the draft ordinance proposed will achieve the objective unless subsidies and incentives are provided. Mike Spangler. President of the SLO Property Owners Association, asked the Council to consider exempting the downtown core from any conversion ordinance and, further, provide Incentives (as an alternative to regulations) on a voluntary basis. In addition, he suggested that since the City owns a substantial amount of real estate, the Council should direct staff to look at converting some of those properties to mixed use facilities. Pierre Rademacher, 882 Chuparossa, commented that the ordinance is too restrictive and proposed the Council consider removing the 32 -unit limitation. He pointed out that it would be beneficial to see some of the office buildings converted back to housing and suggested that not all the housing downtown should be affordable, but rather include some market rate, quality projects. The affordability provision of the ordinance precludes options to do more, he added, and that is a disincentive. In conclusion, he proposed that the Council defer action and conduct a more comprehensive review during deliberations relevant to the Housing Element update. . Dave Romero, 2057 Skylark, discussed former attempts to renovate the Blackstone Hotel and proposed that even with a subsidy It would not be feasible to develop the site as affordable housing. He suggested that the building be demolished to make way for a new structue. Finally, he argued that if the Council absolutely wants the Hotel to be used as affordable housing, then it should provide some flexibility and exceptions. George Movlan. Director of the SLO Housing Authority, argued that San Luis Obispo does not have the economies of scale that many larger municipalities do and emphasize that a small town with small structures has small opportunities. He pointed out that the Blackstone Hotel rehabiliation would only net 15 units and advised that it would be too difficult and too expensive to renovate, particuarly because the building is of low quality. He urged the Council to take a look at the whole downtown housing issue as part of the Housing Element update. Virginia Griffin. 1436 Johnson Avenue, expressed support for the the concept of closing the loophole that allows bungalows to convert to office space and incentives that allow for higher densities. She agreeded that more than affordable housing should be allowed and suggested that higher end, market rate housing be permissable. Wes Burke. 962 Mill Street, recommended that If the Council wants to stop conversions, then there should be an effort made to rezone. If Increased housing is the goal, he added, then City Council Meeting Page 3 Tuesday, February 19,2002- 4:00 p.m. increase the allowed density: He argued that the proposed ordinance will not accomplish the goal of creating new housing written as it is. Steve Delmartini (member of the focus group), 962 Mill Street, commented in favor of rezoning rather than the ordinance for a variety of reasons including the fact that there are no lots for sale in the downtown and what's available nearby is not affordable. He proposed that the Council consider changing provisions of the ordinance by removing the word "shall" as it relates to affordable housing and eliminate the requirement to provide reimbursement for relocation. He urged the Council to develop clear rules and to let people know what's expected. He expressed a concern that a "second" downtown is being developed because downtown businesses are relocating outside the core. In summary, he suggested to Council that another focus group session be conducted to allow further discussion and input. —end of public comments— City Administrative Officer Hamaian recommended, given the complexity of the issues, that the Council give consideration about the type of approach they wish to take in support of the no net loss policy, which might include one or more of the following strategies: Regulatory, rezoning or incentive - based. Additionally, he proposed that the Council consider the policy as part of the comprehensive Housing Element update. Council discussion ensued. Council Member Schwartz Indicated a need for more time to review and consider the matter and suggested that the Council conduct a study session to develop direction to staff. He stressed the need for the Council to define a downtown that represents the central sense of citizen wishes. He also mentioned that a distinction needs to be made between historical housing that should be preserved, and other types of housing where a less rigid approach would be appropriate. Council Member Mulholland agreed that the matter should be deferred until the Council considers the Housing Element update. She asserted that the town should not grow much and what growth does occur should be housing. To preserve existing housing, she suggested that the Council direct staff to look at Increasing the height limitation and density In Subareas A and B, but particularly In the downtown. She added that the loophole that allows conversion should be closed. Other ideas she supports include requiring declarations of "no car ownership" and "offsite storage/garage ". Council Member Ewan agreed that a mixture of housing is needed and spoke in favor of allowing the developer to do what is economically feasible. In reply to a comment made a member of the public, he clarified that the Council is not entertaining the formation of a new agency to manage this program. He voiced support for creating incentives like discounted parking and a density bonus for affordable housing, and further, closing the loophole that currently allows the conversion of residential property to commercial/office. Mayor Settle voiced support for an Incentive based program and a rezoning approach. He also agreed that the Council should take this matter up as part of the Housing Element update and encouraged the public to participate in the process. Vice Mayor Marx commented in favor of increasing the density and height limitation in the downtown, as well as developing incentives that will encourage more housing and home occupation use in the downtown. ACTION: By mutual consent, the Council directed staff to schedule a follow -up study session before Summer 2002 to provide further direction on the policy, as part City Council Meeting Tuesday, February 19,2002- 4:00 p.m. Page 4 of the Housing Element Update. Depending upon the outcome, staff may schedule a follow -up focus group meeting. Utilities Director Moss introduced San Luis Obispo County Utilities Division Manager Christine Ferrara. and Nancy Orson, Project Manager for the EIR for the project, who presented an overview of the proposed pipeline alignment and current status of the Nacimiento Water Supply Project. Council questions followed. Mayor Settle called a break at 6:17 p.m. The meeting resumed at 7:05 p.m. PROCLAMATIONS Mayor Settle presented a proclamation to Public Works Director McCluskey announcing National Engineer's Week. Mayor Settle proclaimed the month of February as "Scout Anniversary Month." PUBLIC COMMENT Jason Berg, President of the San Luis Obispo Police Officers' Association, expressed appreciation to members of the bargaining team for recent efforts in negotiating a new contract for the police officers association. Sifu Kelvin Berming Harrison reiterated claims of harassment. CONSENT AGENDA Public Comments: Mary Beth Schroeder spoke in opposition to Item C3.. —end of public comments— At the request of the public, items C5 and 6 were pulled. Council Member Mulholland indicated she would be casting a "No" vote no on Item C3. ACTION: Moved by Schwartz/Marx to approve the consent agenda as recommended by the City Administrative Officer, with the exception of C5, and 6; motion carried 5:0. Council Member Mulholland voted No on C3. C1. MINUTES OF TUESDAY, JANUARY 29, 2002 AND TUESDAY, FEBRUARY 5.2002. ACTION: Moved by SchwartrJMarx to waive oral reading and approve as presented motion carried 5:0. C2. FINAL ADOPTION OF ORDINANCE NO. 1408 TO PROVIDE 3% AT 55 REQUIREMENT FORMULA FOR LOCAL FIRE MEMBERS OF CALPERS. I it L -J City Council Meeting Page 5 Tuesday, February 19,2002- 4:00 p.m. ACTION: Moved by Schwartz[Marx to grant final adoption to Ordinance No. 1408 (2002 Series): motion carried 5:0. C3. COPELANDS PROJECT ARCHAEOLOGICAL SERVICES. C4. ACTION: Moved by SchwartzlMarx to: A) Approve the revised work scope for archaeological and cultural resource services In connection with the Copeland's Downtown Project. B) Authorize the City Administrative Officer to execute a contract with Applied EarthWorks in the amount of $261,750, contingent upon the developer depositing with the City the amount of $157,050, with the City responsible for the remaining $104,700 under the terms of the approved Memorandum of Understanding of this project. C) Appropriate $104,700 from unreserved Parking Fund working capital for the City's share for this work; motion carved 4:1 (Mulholland). 2004. ACTION: Moved by Schwartz/Marx to adopt Resolution No. 9289 (2002 Series) approving the Memorandum of Agreement; motion carried 5:0. The following items were pulled for public comment and discussion. C5. C6. Council meeting.) i-02 Public Comments: Dave Romero, 2057 Skylark, asked for clarification and pointed out that one solution, "Alternative F ", had not been included the scope of work for the consultant services agreement. Eugene Jud, 665 Leff Street, spoke in opposition to both items and argued that Council should develop and adopt a downtown transportation plan, complete with a program EIR. Brett Cross. 1217 Mariner's Cove, urged the Council to defer action on both items, study the issues more and get more public input. He recommended that a community workshop be scheduled as the first step. ---end of public testimony— Public Works Director McCluskev and Deputy Public Works Director Bochum provided the staff report, responded to comments made by members of the public and answered questions from the Council. City Administrative Officer Hampian noted that staff should have Included Aitemative F and requested that the Council reflect that amendment in the motion. City Council Meeting Page 6 Tuesday, February 19, 2002- 4:00 p.m. Council Member Schwartz commented that the design should include some ground level commercial development on Monterey and Higuera Streets. In addition, he recommended that when a focus group is formed to provide feedback on the proposals, that members of the Downtown Physical Concept Design Team be invited to participate. In response to inquiry from Council Member Mulholland, Public Works Director McCluskey reported that coordination with other agencies will begin once the project has been defined and designed. Council Member Mulholland noted support for moving ahead with the transit component of the study but voiced opposition for proceeding with the design and environmental assessment for the parking component, emphasizing that she feels that the timing is premature. Vice Mayor Marx asked if a program EIR is appropriate at this stage. Staff clarified that a program EIR is one that creates a framework for subsequent environmental review and noted that the consultant will, as part of the RFP, be required to analyze and make a recommendation about the kind of environmental review required. Vice Mayor Marx requested that opportunities for Greyhound and Amtrak be explored and agreed that the consultants for both studies need to work closely together. In addition, she implored staff to not allow the transit transfer station design to fall behind the parking structure. Council Member Ewan suggested that consultant should give consideration to impacts on pedestrian access and circulation, as well as the potential expansion of the CC zone. C7. ACTION: Moved by Ewan/Schwartz to: 1) approve and authorize distribution of the North Area Regional Facility (Transit Component) Request for Proposal, as amended by including Alternative F in the scope of work. 2) Authorize the City Administrative Officer to award and execute contracts with qualified service providers if the amounts are within budget of $150,000; motion carried 5:0. ACTION: Moved by Ewan/Schwartz to: 1) Approve and authorize distribution of the North Area Regional Facility (Parking Component) 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 $150,000; motion carried 4:1 (Mulholland). By mutual agreement, Council directed staff to make sure that the two consultants work closely together, that staff look Into opportunities for Greyhound and Amtrak to relocate at the multi model transit center; that consideration be given to impacts on pedestrian access and circulation, as well as the potential expansion of the CC zone; that plans for ground level commercial development be included; and that staff utilize a broad and Inclusive focus team approach by inviting members of the Downtown Association, transportation and access interest groups, and former members of the Downtown Physical Concept Plan Design Team to participate. ACTION: Moved by Ewan/Schwartz to adopt Resolution No. 9202 (2002 Series) endorsing Proposition 40, The Clean Water, Clean Air, Safe Neighborhood Parks, and Coastal Protection Bond Act, which will appear on the March 5, 2002 statewide ballot; motion carried 5:0. City Council Meeting Page 7 Tuesday, February 19, 2002- 4:00 p.m. PUBLIC HEARINGS 2. STREET ABANDONMENT OF DESERET PLACE, WEST OF CASA STREET (45 -01) . Public Works Director McCluskev and Community Development Director Mandeville presented the staff report. It was clarified that the subject property has numerous constraints, has no potential use other than what the hopsitai proposes and is of questionable value. SLO Housing Authority Director Movlan provided additional background about negotiations between the applicant and the Housing Authority. He added that in addition to the $65,000 for the property, Tenet Health Care has agreed to pay the Housing Authority an additional $75,000 for the loss of existing rental housing on the site. Mayor Settle opened the public hearing. Applicant's representative, John Knight (RRM Design Group), provided additional background about the abandonment and the need. He Indicated that the applicant, Tenet Health Care, finds the solution reasonable and equitable. Christie Cutter. 557 Buchon, argued that the property is worth more than the City is getting for (t Joanne Rogers, 242 Marlene, asserted that the Council is about to engage in a corporate welfare and asserted that Tenet Health Care can afford and should pay full market value for ' the property. She suggested that the property could be used for badly needed parking, urged the Council to seek an Independent appraisal of the property and, further, to put the sale of the property out to competitive bid. Leslie Mealy Smith, Morro Bay resident, proclaimed that approving the abandonment would equate to the granting of a financial favor to Tenet Health Care. Don Nielsen, Director of Arbitrations for California Nurses Association, reported that the Association supports more parking for the hospital but vehemently opposes the abandonment. Kevin Riley. Registered Nurse, also spoke In opposition to the abandonment. Mayor Settle closed the public hearing. Staff responded to Council questions. Community Development Director Mandeville clarified that parking is not an allowable use by right. Public Works Director McCluskev explained that the City may not put the sale of the property out to bid because Tenet Health Care has lawfully claimed a deed right to the property. Public Works Director McCluskev estimated that the City expects to save minimal maintenance costs. City Attorney Jorgensen advised the Council has no obligation to get an appraisal as long as it feels the compensation Is reasonable. He added that the benefit of abandoning the right of way and facilitating the needs of the hospital Is warranted and justifiable. City Administrative Officer Hampian pointed out that the Council has endorsed the expansion of medical facilities within the community and concluded that there is a public interest to be met City Council Meeting Tuesday, February 19, 2002- 4:00 p.m. Page 8 Vice Mayor Marx spoke In support of the recommendation. Council Member Mulholland Indicated she was having second thoughts about the agreed -upon compensation. ACTION: Moved by Ewan/Marx to adopt Resolution No. 9291 (2002 Series) to abandon Deseret Place, subject to reservation of easements and conditions; motion carried 4:1 (Mulholland). 3. COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FOR 2002. Paul Wolff. Chair of the Human Relations Commission summarized the Human Relations Commission's review of requests and recommendations for Community Development Block Grants grant funding. Council questions followed. Mayor Settle opened the public hearing. Roger Jump, Administrator of Judson Terrace Homes, expressed appreciation to the Council for recently approving a grant from inclusionary housing fund in the amount of $215,000 but added that additional funds are needed to ensure accessibility Improvements. Catherine Manning, Homeless Shelter, thanked the Human Relations Commission and staff for recommending approval of their grant request. Michael Passerelli, Food Bank Coalition of SLO County, spoke in support of their request for $28,000 and pointed out that 1000/6 community funding buys them more opportunities for private contributions and/or loans. Bernadette Bernardi. Director of the Literacy Council, asked the Council to reconsider how the funds are allocated in the future, noting that if there are other options for funding the Prado Day Center and the Homeless Shelter, there would be more CDBG funding available for other programs. George Movlan spoke in support of the Food Bank's request and suggested that the Council consider in the future awarding fewer dollars to the SLO Housing Authority and People's Self - Help Housing, which would result in more funding for other housing needs. Mayor Settle closed the public hearing. Council discussed the Food Bank request and reviewed the list of activities and projects recommended for funding to determine what adjustments could be made to grant the request Council agreed to adjust the allocations by reducing the recommended funding for People's Self -Help Housing, the City of SLO ADA Sidewalk Improvement Project and the City of SLO Husansa/Oceanaire Neighborhood Improvement Project by 113 of $28,000 each and designate those funds (totaling $28,000) to the Food Bank of SLO County. ACTION: Moved by Schwartz/Marx to adopt Resolution No. 9292 (2002 Series), as revised, recommended by the Human Relations Commission to: 1) Approve the 2002 Community Development Block Grant (CDBG) Program activities and funding In the amount of $946,205. 2) Amend previous years' CDBG programs. 3) Endorse the Urban County Draft One -Year Action Plan, including HOME, Special Urban Projects and Emergency Shelter Grant funding. 4) Forward the Council's actions and funding recommendations to the County Board of Supervisors; motion carried 5:0. 1 City Council Meeting Page 9 Tuesday, February 19, 2002- 4:00 p.m. BUSINESS rTEMS 4. PROPOSED OWNER CHANGES TO THE COPELANDS PROJECT PARKING/ OFFICE STRUCTURE. Economic Development Manager Stanwyck presented the staff report Public Comments: Mary Beth Schroeder. 2085 Wilding Lane, voiced opposition to the project and to any more parking structures. She suggested that the City Invite Macy's to build a store on Court Street. Eugene Jud, 655 Leff Street, said he would like the EIR to provide a clear definition of the cumulative parking needs. He argued that the location of the parking structure is not the best because access is poor and the property too narrow. He also voiced opposition to the removal of trees to accommodate the garage and asked why the process is so complictated. City Attorney Jorgensen responded that the replacement parking is a necessary mitigation measure for the development of the Court Street property. He added that the project's timing must be concurrent with the development of Court Street in order to stay on track. Dave Romero, 2057 Skylark, said that the staff report didn't address the loss of a major fcus tree and voiced concern about the fate of other trees on Court Street. Mark Rawson, project architect, explained the need to improve the turning radius for the ramps and reported that two Ficus trees on Court Street will be removed by the City for street widening but added that the three others will remain. He noted that the Architectural Review ' Commission has opined that the trees are problematic and pointed out that while the one on Morro has damaged the sidewalk, it is not proposed to be removed unless it absolutely must be to accommodate the building Council Member Schwartz agreed that the Ficus tree on Morro Street is in poor shape. City Administrative Officer Hampian provided some assurances that staff will keep the Council in the loop as it relates to potential tree removals. Council Member Ewan voiced the need to accommodate bicycle traffic on Morro Street and asked that staff ensure a link that works well between the post office and the govemment center. Council Member Mulholland remarked that two elevators for a building this size is one too many. Vice Mayor Marx disagreed, noting that wheelchair access at both elevations is needed. —end of public comments — ACTION: Moved by Settle/Marx to: 1) Direct staff to request that the architects provide an additional elevator, at Palm and Morro Streets, In the Copeland's Project Parking / Office Structure at an estimated cost of $150,000. 2) Direct staff to request that the architects widen the footprint of the Copeland's Project Parking / Office Structure by encroaching Into the Morro Street right -of -way by no more than five feet and eliminating parking on Morro Street when the project is complete, at an estimated cost of $25,000. 3) Direct staff to modify the Memorandum of Understanding with the Copelands to reflect these design and cost changes and return to Council for approval of the modified agreement; motion carried 4:1 (Mullholland). 5. COOPERATIVE USE OF THE MORRO BAY DESALINATION FACILITY. City Council Meeting Tuesday, February 19, 2002- 4:00 p.m. Page 10 Utilities Director Moss presented the staff report and responded to questions from the 1 Council. Public Comments: Mary Beth Schroeder. 2085 Wilding Lane, urged the Council to spare the Dalidio property from development because it may be an important water resource. end of public comments— Vice Mayor Marx emphasized a need to be sure that the City of SLO does not get involved with issues between the City of Morro Bay and Duke Energy. Council Member Ewan agreed. Mayor Settle voiced support for further staff evaluation. Council Member Mulholland indicated that she has concerns about unknown environmental impacts and does not believe that any of the options for expanding the City's water supply provide reasonable environmental trade -offs. Council Member Ewan asked staff to provide the Council with information about energy consumption and costs for the Nacimlento Pipeline project as compared to the energy consumption and costs for desalination. ACTION: Moved by Ewan/Settle to direct staff to work with the City of Morro Bay staff to evaluate the feasibility of a joint use of the Morro Bay desalination plant; motion carried 4:1 (Mulholland). 6. GROUNDWATER STUDY. Water Division Mananaer Henderson presented the staff report and responded to Council questions. There were no public comments. ACTION: Moved by Marx/Mulholland to: 1) receive and file draft report entitled, "Analysis of Potential Increased Groundwater Pumping by the City of San Luis Obispo." 2) Authorize City Administrative Officer to execute agreement with Cleath and Associates for consultant services for a total compensation not to exceed $7,500. 3) Authorize the City Administrative Officer to execute contract(s) for well drilling services not to exceed $80,000; motion carried 5:0. AT 11:08 p.m. Marx/Mulholland moved to continue the meeting beyond 11:00 p.m., but to adjourn no later than 11:30 p.m, motion unanimously passed. COUNCIL LIAISON REPORTS Council Member Mulholland presented an overview of the February 6, 2002 County Water ' Resources Advisory Committee meeting. City Council Meeting Page 11 Tuesday, February 19,2002- 4:00 p.m. Chunril h1hrnber Milhnlland reported on the February 12, 2002 Downtown Association Board meeting. C hnncil X mher Schwai1 reported on the February 6, 2002 San Luis Council of Governments and San Luis Obispo Regional Transit Authority meeting (memo on file in the Office of the City Clerk). C hunril X ether Ewan gave an update on the January 11, 2002 meeting of the North County Water Purveyors Group (memo on file in the office of the City Clerk). COMMUNICATIONS None There being no further business to come before the City Council, Mayor Settle adjourned the meeting at 11:18 p.m. to Tuesday, February 26, 2002 at 7:00 p.m. in the Council Chamber, 990 Palm Street, San Luis Obispo. APPROVED BY COUNCIL: 315/2002 1 City Clerk