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HomeMy WebLinkAbout12/18/2007F, MINUTES SPECIAL MEETING OF THE CITY COUNCIL CITY OF SAN LUIS OBISPO TUESDAY, DECEMBER 18, 2007 — 6:30 p.m. COUNCIL HEARING ROOM, 990 PALM STREET SAN LUIS OBISPO, CALIFORNIA ROLL CALL: Council Members Present: Council Members Andrew Carter, Christine Mulholland, Allen Settle, Vice Mayor Paul Brown and Mayor Dave Romero Staff Members Present: Ken Hampian, City Administrative Officer; Jonathan Lowell, City Attorney; Audrey Hooper, City Clerk; Monica Irons, Human Resources Director; Rachael Henderson, Human Resources Analyst City Attorney Lowell announced the Closed Session Conference with the Labor Negotiators as indicated below. PUBLIC COMMENT ON CLOSED SESSION ITEM No comments were forthcoming. CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVERNMENT CODE § 54957.6 AGENCY NEGOTIATOR: EMPLOYEE ORGANIZATIONS MONICA IRONS, RACHAEL HENDRICKS, KEN HAMPIAN SAN LUIS OBISPO CITY EMPLOYEE ASSOCIATION UNREPRESENTED EMPLOYEES: CONFIDENTIAL EMPLOYEES, DEPARTMENT HEADS AND OTHER UNREPRESENTED EMPLOYEES During the Regular Meeting, City Attorney Lowell reported that the Closed Session was held as indicated and that there was no further reportable action. City Council Meeting Page 2 Tuesday, December 18, 2007 The Special Meeting adjourned at 6:55 p.m. to a Regular Meeting held in the Council Chamber at 7:00 p.m. MINUTES REGULAR MEETING OF THE CITY COUNCIL CITY OF SAN LUIS OBISPO TUESDAY, DECEMBER 18, 2007 — 7:00 p.m. COUNCIL CHAMBER, 990 PALM STREET SAN LUIS OBISPO, CALIFORNIA ROLL CALL: Council Members Present: Council Members Andrew Carter, Christine Mulholland, Allen Settle, Vice Mayor Paul Brown and Mayor Dave Romero City Staff: Present: Ken Hampian, City Administrative Officer; Jonathan Lowell, City Attorney; Audrey Hooper, City Clerk; Shelly Stanwyck, Assistant City Administrative Officer; John Mandeville, Community Development Director; Bill Statler, Finance and Information Technology Director; John Moss, Utilities Director; Jay Walter, Public Works Director; Debbie Malicoat, Finance Manager; Pam Ricci, Senior Planner At this time City Attorney Lowell reported that Council held a Closed Session with its Labor Negotiators during a Special Meeting at 6:00 p.m., as indicated above. No further reportable action was taken at this time. APPOINTMENTS Al. COUNCIL LIAISON SUBCOMMITTEE ASSIGNMENTS FOR 2008. Mayor Romero presented the agenda report. ACTION: Moved by Brown/Mulholland to approve the Council Liaison Subcommittee assignments for calendar year 2008 as presented; motion carried 5:0. PUBLIC COMMENT Ken Hamiard, Santa Margarita, referred to the new Congregation Beth David Synagogue on Los Osos Valley Road as an example that the community is doing ' its part to accomplish energy savings in relationship to Title 24, the State's Energy Code. City Council Meeting Tuesday, December 18, 2007 Page 3 ' Allan Cooper, San Luis Obispo, spoke about the importance of implementing a Certified Local Government Program. He said the Cultural Heritage Commission has discussed developing such a program along with a historic preservation ordinance. David Brodie, San Luis Obispo, noted the City's designation as a "Cool City' and explained that in order to maintain that designation, the City will need to meet additional energy conservation measures, moving from milestone 3 to milestones 4 and 5. He discussed the need to promote green buildings and other energy solutions when considering development in the downtown and surrounding areas. Gary Fowler, San Luis Obispo, also spoke about the need to find alternative energy sources for new development in the downtown core. He expressed concern about unsightly garbage bins in the downtown and suggested that space should be provided by developers for properly containing trash, particularly during development. Elizabeth Abrahams, San Luis Obispo, suggested that community workshops be held in 2008 so that the entire community can participate in developing a vision for the City and that a physical model should be made that includes the entire vision and not just individual projects. Joe Abrahams, San Luis Obispo, discussed the unique architecture of the City and the importance of keeping this architecture in mind as well as considering what type of architecture will be presented in the future. Steve Hansen, County Tobacco Control Alliance, suggested that other cities have exceeded San Luis Obispo's efforts in protecting its citizens through smoke -free laws. He discussed the need for additional tobacco reform and asked Council to support a health care reform initiative that will be on the ballot in 2008, which will be partially funded by the tobacco tax. Sifu Kelvin Harrison, San Luis Obispo, discussed his continuing concerns regarding personal harassment. CONSENT AGENDA ACTION: Moved by Settle /Mulholland to approve the Consent Agenda as indicated below. C1. MINUTES OF TUESDAY, NOVEMBER 20.2007, REGULAR MEETING. ACTION: Moved by Settle /Mulholland to waive the oral reading and approve as presented; motion carried 5:0. City Council Meeting Tuesday, December 18, 2007 C2. Page 4 ACTION: Moved by Settle /Mulholland to: 1. Authorize the CAO to utilize funds from the General Fund balance to overstaff one of the Police Communications Technician positions beginning in February 2008 and a second position if needed to avoid critical staffing shortages due to upcoming retirements in 2008. 2. Appropriate funding for this overstaffing from the General Fund balance in an amount not to exceed $90,370; motion carried 5:0. C3. 2008 OFFICE OF TRAFFIC SAFETY "CLICK IT OR TICKET" PROGRAM GRANT APPLICATION SUBMITTAL. ACTION: Moved by Settle /Mulholland to: 1. Approve the submission of a grant application to the California Office of Traffic Safety for a grant in an amount not to exceed $7,500 to fund officer overtime for seatbelt enforcement. 2. Authorize the CAO to accept the grant award if the amount is less than $7,500 and to execute all grant documents; motion carried 5:0. C4. ADOPTION OF ORDINANCE 1511 REZONING PROPERTY AT 871 ISLAY STREET FROM MEDIUM DENSITY RESIDENTIAL HISTORIC (R- 2-H) TO MEDIUM -HIGH DENSITY RESIDENTIAL HISTORIC (R -3 -H) (R ACTION: Moved by Settle /Mulholland to adopt Ordinance No. 1511 (2007 Series) rezoning property at 871 Islay Street; motion carried 5`0. C5. ANNUAL STATEMENT OF DEVELOPMENT IMPACT FEES. ACTION: Moved by Settle /Mulholland to receive and file annual statements of revenues and expenditures from development impact fees for 2006 -07 (water, wastewater and transportation); motion carried 5`.0. C0 F A ACTION: Moved by Settle /Mulholland to endorse the Go21 Statement of Principles, and authorize the Mayor to send a letter of endorsement and other communications consistent with that endorsement; motion carried 5:0. C7. ACTION: Moved by Settle /Mulholland to: 1. Approve a contract with Rick Engineering for traffic engineering services in connection with South Broad Street. 77 L City Council Meeting Page 5 Tuesday, December 18, 2007 2. Authorize the CAO to execute a contract for traffic engineering services for a total price not to exceed $41, 800; motion carried 5:0. C8. JACK HOUSE FOUNDATION REPAIRS, SPECIFICATION NO. 90353. ACTION: Moved by Settle /Mulholland to: 1. Approve plans and specifications for "Jack House Foundation Repairs ", Specification No. 90353. 2. Authorize staff to advertise for bids and authorize the City Administrative Officer to award the contract if the lowest responsible bid is within the Engineer's Estimate of $170,000; motion carried 5:0. C9. 2008 USE OF SLO BASEBALL STADIUM BY SEMI- PROFESSIONAL BASEBALL TEAMS. ACTION: Moved by Settle /Mulholland to: 1. Approve the 2008 SLO Baseball Stadium semi - professional baseball use schedule as mutually agreed upon and proposed by the SLO Blues and SLO Rattlers, conditional upon the schedule accommodating the needs of Babe Ruth. 2. Direct staff to develop one year Use Agreements with each organization. 3. Return to Council with final agreements for approval and execution; motion carried 5:0. Council concurred to reorder the agenda at this time to consider the Business Item. 1 BUSINESS ITEM 2. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) FOR 2006- 07. Finance Director Statler presented the agenda report. Finance Manager Malicoat was present to respond to questions. Kathi Niffeneger, Glenn, Burdette, Phillips & Bryson, commented on the audit, which contained positive news. Public Comments - - -end of public comments -- Council Members expressed appreciation to Finance for its excellent work. No Council action was required on this matter. Council reordered the agenda to consider Liaison Reports and Communications 1 Items at this time. LIAISON REPORTS City Council Meeting Page 6 Tuesday, December 18, 2007 Council Member Mulholland reported on her attendance at the County Water Resources Advisory Committee meeting on December 5t'. Mayor Romero reported on the activities of the County Regional Transit Authority. COMMUNICATIONS Council Member Mulholland referred to a memorandum (on file in the City Clerk's office) from Deputy Director of Community Development Murry regarding an opportunity for a greenhouse gas inventory to be done for the City of San Luis Obispo. To have access to the resources for the doing the inventory, the City may want to consider joining the International Council for Local Environmental Initiatives ( ICLEI). The ICLEI would provide access to a computer model that would assist in generating the inventory, but would require Council to commit to its five -step process involving five milestones. Council Member Mulholland asked Council to consider placing this matter on a future Agenda for discussion and possible endorsement of this program. Council directed staff to place this matter on the January 8, 2008, agenda. In response to Council Member Mulholland, CAO Hampian explained that amendment to the Mitchell Park Master Plan has been before the Parks & Recreation Commission, but before it can come to Council, it will need to undergo 1 an environmental review process. It will also need to be heard by the Cultural Heritage Commission and Architectural Review Commission, following which it will be brought to Council at a public hearing. This will occur before Council considers the plans and specifications or approves the bid for the parking facility itself. 1. PUBLIC HEARINGS REY MITTEE BY PALM STREET AND ADJACENT PARCELS). (MANDEVILLE/RICCI - 3 HOURS) Planning Director Mandeville introduced this item, following which Senior Planner Ricci presented highlights of the revised project, review process and main project issues discussed in the agenda report. City Attorney Jonathan Lowell explained that the applicant's special counsel questioned whether it is appropriate for the City to consider 144 spaces of unmet parking demand as an environmental impact to be mitigated. He further City Council Meeting Page 7 Tuesday, December 18, 2007 explained that the applicant's special counsel pointed out several cases suggesting it would be improper to impose mitigation measures based on this unmet parking need. City Attorney Lowell said that, in reviewing these cases, they all involved very different fact situations than the one we have here in San Luis Obispo. None of the cases addressed the loss of existing public parking spaces on public property. Those cases stemmed from challenges by project proponents asserting inadequate environmental review and mitigations to address parking impacts. City Attorney Lowell concluded that the cases make clear the courts give great deference to cities in making environmental review determinations. In addition, in none of those cases is a city precluded from considering environmental impacts related to the loss of parking. Therefore, the Council has the legal ability to consider the loss of parking as an environmental impact and to impose mitigation measures. Dan Gira, Project Manager from Amec Earth & Environmental, reviewed the environmental documents, including modifications made to the project impacts and mitigation measures as a result of the revised project, significant and unavoidable impacts, and findings of overriding considerations. Consultant Allan Kotin and Finance Director Statler provided an overview of the fiscal impact analysis. Mr. Kotin reviewed a correction to the cost calculations associated with "residential equivalencies" (revised fiscal impact on file in the City Clerk's office). Senior Planner Ricci concluded the staff and consultant presentations with a review of the CAO recommendation, following which staff responded to questions. Mark Rawson, developer, explained why it is important the Final EIR be certified at this meeting. He reviewed the history of this project and its responsiveness to public input. He commented as indicated on the following issues: 1) Demolition of the Blackstone Hotel and Sauer Bakery Buildings. These buildings are not good candidates for adaptive reuse, but the applicant plans to rebuild them to look like 1930s versions of the two buildings. 2) Unmet Parking Demand. This should not be included in the EIR. Doing so may preclude finding a solution that is not available at this meeting. Additionally, absorbing the 144 spaces would not be difficult given that the number of unused spaces available in City garages. 3) Affordable Units. The Muzio building will be seismically retrofitted for safety purposes. The former six residential units on the upper floor were ' substandard units and were not deed restricted to assure affordability. The applicant plans to include four deed - restricted affordable units on the third City Council Meeting Tuesday, December 18, 2007 Page 8 floor of the proposed Building C. In addition, there will be more units in other buildings that are considered affordable by design than previously existed. 4) Sauer Bakery Oven. Space has been allocated in the plaza area to reconstruct and display the historic oven doors. 5) Hotel Parking. This would be adequate as the hotel would cater to customers arriving in groups but staying in separate rooms. Mr. Rawson responded to Council's questions. Council recessed from 9:28 until 9:40 p.m. and the meeting reconvened with all members present. In response to Council Member Settle, Consultant Allan Kotin explained that certification of the EIR plays a major role in obtaining tenants for the development by maintaining credibility that the project is successfully proceeding onward even if all other needed project entitlements have not been secured. Mayor Romero opened the public hearing. Susan Ellenbogen, San Luis Obispo, suggested that two more deed restricted, affordable units should be required in the project, that the Sauer and Blackstone buildings should be preserved and rehabilitated, and that there are days when the City's new parking structure is full. Alex Gough, San Luis Obispo, displayed photographs of and asked that the Swiss - Italian building be preserved and restored and asked that as much of the Blackstone building as possible be saved. Allan Cooper, San Luis Obispo, discussed mitigations for historic resources and spoke in support of staff's alternative #3 . He asked that mitigation measure CR- 5 be revised to incorporate architectural details of the original Swiss - Italian building and any potential remaining elements of the Quintana Block Building in the new construction. He also asked that an additional requirement be added to CR -5 that requires the architect to endeavor to incorporate the Ah Louis bricks into the new construction of the new hotel. He opposed demolition and supported preservation, restoration or adaptive reuse of the Master List Sauer Bakery building, and encouraged the Council to require the detailed rehabilitation feasibility analysis that the Cultural Heritage Commission had recommended. Bob Vessels, San Luis Obispo, explained that the applicant did not provide enough information for the Cultural Heritage Commission to make a decision for the demolition of the historic structures. He asked that, if Council certifies the EIR, a requirement be added to save the Sauer Bakery Building on the Master List of Historic Properties, that the bricks from the Blackstone building be ' City Council Meeting Tuesday, December 18, 2007 Page 9 recycled, and that the facade of the Swiss - Italian building facing Chorro be adaptively reused in the project. David Brodie, San Luis Obispo, suggested that pedestrian circulation for its own sake is not the most efficient land usage and that pedestrian paths must adquately feed the retailers. He also suggested that historical buildings should not only be seen as isolated structures, but for the role they play in the organization of a historical district. He further said that adaptive reuse of historic buildlings is an important approach in today's economic and social environment. Don Rivara, San Luis Obispo, discussed the history of the Quintana Building (Blackstone Hotel) and spoke in opposition to its demolition. (Mr. Rivara's concerns are further expressed in a red file document available in the City Clerk's office.) Gary Fowler, San Luis Obispo, asked for additional information regarding height limitations or restrictions for all buildings in the project. He was concerned that project parking impacts were mitigated by in -lieu fees rather than on -site parking spaces. Elizabeth Abrahams, San Luis Obispo, concurred with prior speakers and spoke in support of the preservation of the Sauer Bakery building and ovens and the 1 recycling of the Blackstone building bricks. Thomas Quintana said he is a direct descendant of Francisco Estavan Quintana. His main concern related to cultural resource mitigation measures and he suggested that the culture and history of the people who had lived here should be included in the project. Susan Devine, San Luis Obispo, urged Council to adopt staff's alternative #3 and said that there must be an analysis of the Sauer Bakery building for the purpose of its rehabilitation and adaptive reuse. Christopher Yip, San Luis Obispo, discussed his qualifications as an architect and said that at least the facades of the contributing historic buildings should be preserved. He suggested that further investigation must be done to develop a way to express the Chinese - American past. Bruno Giberti, San Luis Obispo, discussed his background as an architect and former member of the Cultural Heritage Commission. He suggested that without a structural report, the applicant has not demonstrated that the buildings cannot be rehabilitated. He urged Council to support the Cultural Heritage Commission's decision to require a detailed rehabilitation feasibility analysis and opposed the demolition of the buildings. City Council Meeting Page 10 Tuesday, December 18, 2007 Joseph Abrahams, San Luis Obispo, suggested the project lacks imagination, that there should be access to an inner courtyard where families can circulate, that there should be more community involvement in the design of the project, and that there should be an organic connection between Chinatown and the Mission Plaza. Dan Krieger, San Luis Obispo, discussed his expertise as a historian and his role as a founding member on the Cultural Heritage Commission. He expressed concern about the loss of the Quintana (Blackstone) and Sauer Bakery buildings and said that the buildings on the Master List of Historic Resources, such as the Sauer Bakery, must be preserved. Nick Watrv, San Luis Obispo, encouraged Council to certify the EIR. Deborah Cash, Downtown Association, said that the Board has supported the project since its inception and that she felt confident the Board members would support moving forward with the EIR. She urged Council to certify the EIR. Chuck Crotser, spoke on behalf of the Cultural Heritage Commission and explained why the Commissioners had recommended that a detailed rehabilitation feasibility study to analyze the potential adaptive reuse in the project of the Blackstone Hotel and Sauer Bakery buildings be completed prior to any final actions regarding their demolition. 1 Devin Gallagher, New Zealand, agreed with comments in support of the preservation of the historic buildings. Chris Bleuher, San Luis Obispo, supported project changes made by the applicant and asked Council to certify the EIR. Boz Schraqe, San Luis Obispo, expressed conern about changing the ambiance of the City and asked Council to support the Planning Commission and Cultural Heritage Commission, and preserve the history of the City by preserving the Blackstone Hotel and Sauer Bakery buildings. Michael Helper, San Luis Obispo, questioned whether the proper posting had been done for this hearing and suggested that the Blackstone building can be retrofitted and preserved in the project. Ermina Karim, representing the Chamber of Commerce, said while the Chamber applauds the City's process, it hopes the City will continue to balance historic preservation with economic vitality. Pete Evans, San Luis Obispo, suggested that tourists are drawn to the City because of its quaintness and historical buildings. He said he has had difficulty finding spaces in the parking garages, City Council Meeting Tuesday, December 18, 2007 Page 11 Danielle Castle, San Luis, also commented on the quaintness of the downtown and opposed the demolition of historic buildings. Bob Lucas, San Luis Obispo, acknowledged the project modifications but spoke in supoprt of preserving the historic buildings. Mayor Romero closed the public hearing. Council Member Carter spoke in opposition to certifying the EIR at this meeting, particularly since the Planning Commission and Cultural Heritage Commission did not receive the structural analysis or financial feasibility report requested regarding the Blackstone Hotel and Sauer Bakery buildings. He was also concerned that the City s parking fund was structurally imbalanced. Vice Mayor Mulholland also spoke in opposition to certifying the EIR at this meeting. She was concerned that the public did not have an opportunity to review the resolution or statement of overriding considerations that were released today, as well as possible notification or posting issues. In addition, she said she did not think the Statement of Overriding Considerations offset the impacts to the community of the current proposal. Council Member Settle supported certification of the EIR given the substantial modifications to the project to lower its height and scale. Council Member Brown also supported certification of the EIR. He explained he is willing to do so because this is not a decision determining whether the project is a good or bad one, but whether the EIR adequately addresses the project's potential environmental impacts and needed mitigations. Mayor Romero also supported certifying the EIR. However, he expressed concern that a structural analysis of the Sauer Bakery building had not been provided. Discussion ensued regarding mitigation measures, parking, affordable housing and design issues. Council directed that the changes contained in the December 18, 2007, Errata Sheet be included in the Final EIR. Further direction was provided as indicated below. Historic Buildings There was consensus to modify the third bullet of Mitigation Measure CR -4 to require a historic structures report for the Sauer Bakery building that will identify features that may be preserved and/or incorporated into the project. Additionally, language requiring review of the plans by the Cultural Heritage Committee will be deleted. City Council Meeting Page 12 Tuesday, December 18, 2007 There was also consensus to modify the third bullet of Mitigation Measure CR -5 to include language directing the reuse of the Ah Louis bricks found on the site of the Blackstone Hotel building as deemed feasible by a historic structures report, as well directing that portions of the fagade of the Swiss - Italian building along Chorro Street be reused as deemed feasible by a historic structures report that identifies features that might be preserved and/or incorporated into the new construction. Council Member Mulholland explained why she preferred that both the Sauer Bakery and Blackstone buidings be considered for rehabilitation and adapative reuse. She thought the buildings could be sensitively deconstructed and redesigned within the existing footprints. She expressed discomfort with the demolition of the Bello's building and the height of the building proposed to replace it. Council Member Carter asked that the Cultural Heritage Commission be involved in developing the scope of work for the historic structures report. However, Commissioner Crotser clarified that the Cultural Heritage Commission consensus was that the report should be prepared and submitted directly to Council. Council Member Settle,Vice Mayor Brown and Mayor Romero said they concurred with staff's recommendation and directed that the historic structures report be prepared by Applied Earthworks, who prepared the EIR. Parkin City Attorney Lowell explained that the December 11, 2001, and February 18, 2003, Council agenda reports indicate that the matter of replacement public parking was deferred so as to be dealt with at the same time as the EIR for the Chinatown project. Council Member Carter, Mayor Romero and Vice Mayor Brown said they supported the recommendation to accept Mitigation Measure TT -7a, included in the Final Update for the EIR, requiring payment of mitigation fees for 144 parking spaces equivalent to the existing in -lieu parking fee in effect at the time of the building permit issuance. Council Member Mulholland disagreed particularly because the project will generate a number of public uses but does not provide public parking spaces. Affordable Housing With the concurrence of Vice Mayor Brown, Council Member Settle and Mayor Romero, staff was directed to remove Mitigation Measure PH -2 since, with the inclusion of four deed - restricted affordable housing units, the project is consistent City Council Meeting Page 13 Tuesday, December 18, 2007 with the City's Inclusiona y Housing Ordinance and this Mitigation Measure is no ' longer necessary. Council Member Carter disagreed, preferring that six affordable housing units be required. Council Member Mulholland also disagreed, since six rental units are being lost. She also explained why she did not think deed restricted units equate to low - income units. Miscellaneous Council Member Mulholland explained why she did not think energy and air pollution issues have been addressed. In response to Council Member Mulholland, Project Manager Gira discussed the ways in which these have been addressed in the EIR. There was no direction to pursue these issues further. Direction To Architectural Review Commission (ARC) 1 Discussion ensued during which Council requested that the ARC specifically look at the following issues when considering the project design: 1) a detailed solid waste management plan, 2) reduced impacts to the adjacent Feliciano building, and 3) reuse of components of the Sauer Bakery oven as recommended by the historic structures study that will be completed as indicated previously. Council Member Carter said that it will be important for the ARC to aim high when considering design issues and not to accept mediocrity. Issues with which he was particularly concerned are: • The use of painted stucco. He suggested that there needs to be a variety of materials used and that painted stucco is not a sufficient exterior finish. • The need for steps. He thought that 32 steps are too many to get from one level to another and that escalators should be considered. • There needs to be a link from the hotel lobby to the restaurant. • The second -story public balcony above the Monterey Street entrance to the garage doesn't seem feasible due to concerns about automobile exhaust and noise. • The paseo entrance on Morro Street is adjacent to garbage access and a delivery area and this raises concerns. Council Member Mulholland concurred with Council Member Carter's comments. City Council Meeting Tuesday, December 18, 2007 Page 14 Vice Mayor Brown, Council Member Settle and Mayor Romero felt that the ARC and applicant should have the flexibility to work out the details of these design concerns. Mayor Romero indicated that he hoped the applicant would consider designing underground parking with a directional flow. During the Council discussion, there was consensus that the ARC should consider the compatiblity of the project with nearby historic buildings and the Downtown historic district. In addition, Mayor Romero recommmended that consideration should be given to directional signage for the parking area. ACTION: Moved by Settle /Carter to: 1. Adopt, with amendments, Resolution No. 9946 (2007 Series) making findings, adopting a Statement of Overriding Considerations, and certifying the Final Environmental Impact Report and Update for the Chinatown Project. 2. Provide direction to the Architectural Review Commission related to the design issues as indicated above; carried 4:1 (Mulholland opposed). There being no further business to come before the City Council, Mayor Romero adjourned the meeting at 12:25 a.m. Audrey Ho "er City Clerk APPROVED BY COUNCIL: 01/22/08 1