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
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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