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Minutes 2001-01-09 MINUTES REGULAR MEETING OF THE CITY COUNCIL TUESDAY, JANUARY 9,2001 COUNCIL CHAMBERS, 215 E. BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. CALL TO ORDER Mayor Lady called the Regular City Council meeting to order at 7:05 p.m. 2. ROLL CALL City Council: Council Members Runels, Dickens, Lubin, Mayor Pro Tern Ferrara, and Mayor Lady were present. City Staff Present: City Manager Adams; City Attorney Carmel; Director of Administrative Services Wetmore; Director of Building and Fire Fibich; Director of Financial Services Snodgrass; Director of Economic Development Sheeley; Director of Parks, Recreation, and Facilities Hernandez; Community Development Director McCants; Director of Public Works Spagnolo; Associate Planner Heffernon; and Chief Building Inspector Schmidt. 3. FLAG SALUTE Jack Gatz, President, Arroyo Grande Lions Club, led the Flag Salute. 4. INVOCATION Pastor Ron Gerking, Seventh-Day Adventist Church, Arroyo Grande delivered the invocation. 5. SPECIAL PRESENTATIONS None. 6. AGENDA REVIEW None. 6.a. Resolutions and Ordinances Read in Title Only Council Member Runels moved, Council Member Dickens seconded, and the motion passed unanimously that all resolutions and ordinances presented at the meeting shall be read in title only and all further reading be waived. . 7. CITIZENS'INPUT. COMMENTS. AND SUGGESTIONS None. ---------- CITY COUNCIL MINUTES JANUARY 9, 2001 PAGE 2 8. CONSENT AGENDA Council Member Runels requested Item 8.c. be pulled for separate roll-call vote. Council Member Runels moved and Council Member Dickens seconded the motion to approve Consent Agenda Items 8.a. through 8.k., with the exception of Item 8.c., with the recommended courses of action: 8.a Cash Disbursement Ratification. Action: Approved listing of cash disbursements for the period December 1, 2000 through December 31,2000. 8.b. Statement of Investment Deposits. Action: Received and filed the report of current investment deposits as of December 31,2000. 8.d. Minutes of the City Council Meeting of December 12, 2000. Action: Approved as submitted. 8.e. Request for Authorization to Close Certain City Streets and Use City Property for the Annual Strawberry Festival, Annual Easter in the Village, and Annual Fourth of July. Action: Adopted Resolution No. 3493 authorizing the closure of City streets and use of City property. 8.f. City Hall Re-Roofing Project, Progress Payment No. 1 and Notice of Completion. Action: 1) Authorized progress payment in the amount of $37,716.15 to Quaglino Roofing; 2) Directed staff to file a Notice of Completion; and 3) Authorized release of the retention of $4,190.68, thirty-five (35) days after the Notice of Completion has been recorded, if no liens have been filed. 8.g. Fair Oaks AvenuelTally Ho Road Overlay Project, Project No. PW-2000-3, Progress Payment No.5. Action: Authorized progress payment in the amount of $14,650.88 to R. Burke Corporation for work completed on the Fair Oaks AvenuelTally Ho Road Overlay capital improvement project. 8.h. Program Supplement Agreement for the Scenic Creekside Walk Through the Historic Village of Arroyo Grande, Phase II. Action: 1) Adopted Resolution No. 3494 authorizing the Mayor to execute the Program Supplement Agreement No. M005; and 2) Directed the Director of Administrative Services to submit Program Supplement Agreement No. M005 and authorizing Resolution to Caltrans. 8.i. Program Supplement Agreement for the Traffic Way Bridge Rail Replacement Project. Action: 1) Adopted Resolution No. 3495 authorizing the Mayor to execute the Program Supplement Agreement No. M006; and 2) Directed the Director of Administrative Services to submit Program Supplement Agreement No. M006 and authorizing Resolution to Caltrans. -----,- CITY COUNCIL MINUTES JANUARY 9, 2001 PAGE 3 8.j. Implementation of New State Minimum Wage Rate Action: Adopted Resolution No. 3495 to increase wages for those part-time positions that fall below the new State minimum wage. 8.k. Approval of Park and Ride Lot Lease Agreement. Action: Approved the Park and Ride Lease Agreement with the California State Department of Transportation (Caltrans) and authorized the Mayor to execute the Agreement. AYES: Runels, Dickens, Lubin, Ferrara, Lady NOES: None ABSENT: None There being 5 AYES and 0 NOES, the motion is hereby declared to be passed. 8.c. Adoption of Ordinance Establishing Maximum Building Size for Commercial Uses. . Recommended Action: Adopt Ordinance No. 522 C.S. establishing maximum building size for commercial uses. Council Member Dickens moved to adopt an Ordinance establishing maximum building size for commercial uses. Mayor Pro Tern Ferrara seconded the motion, and on the following roll-call vote, to wit: AYES: Dickens, Ferrara, Lubin, Lady NOES: Runels ABSENT: None There being 4 AYES and 1 NO, the motion is hereby declared to be passed. 9. PUBLIC HEARINGS 9.a. Consideration of Conditional Use Permit 00-015 to Construct an 84-room Assisted Care Facility at 579 Camino Mercado (Horizon Senior Housing). Associate Planner Heffernon gave the staff report. She gave an overview of the project . stating that the proposed project was an 84-room assisted care facility approximately 100,000 square feet in size and would include a total of 50 parking spaces. She explained that the Planning Commission discussed concerns about the project relating to issues of pedestrian accessibility from the facility to the street, landscaping, building height, traffic impacts, and affordable housing. She stated that conditions of approval were added to the project to address pedestrian accessibility, landscaping, and affordable housing. The Planning Commission recommended the City Council adopt a Resolution approving Conditional Use Permit No. 00-15 subject to the conditions of approval. CITY COUNCIL MINUTES JANUARY 9, 2001 PAGE 4 Council Member Dickens asked questions regarding Condition #43 and Mitigation Measure #17 relating to the Vegetation Management Plan and what it included. Associate Planner Heffernon explained that there was a significant amount of brush located on a portion of the site that would be cleared away for fire prevention. She stated that Condition #43 was added due to the high occupancy of the project and the existing conditions of the topography at the location. Council Member Dickens referred to Mitigation Measure #1 regarding neutralizing the estimated increase in water demand created by the project. He asked how the funds would be used to offset or mitigate the increase in water demand, if the applicant chose to pay the in-lieu fee. Director of Public Works Spagnolo responded that there were two options in utilizing the in-lieu fees. One option was to identify a project, such as a reclaimed water line; or the City could set up a program to conduct retrofits. He said that the City did not have these programs set up yet. There was further discussion relating to the Water Neutralization Program. Council Member Dickens referred to Mitigation Measure #4 regarding drainage. He asked if water run-off could be accommodated by existing facilities since there was not a retention basin on the project site. Associate Planner Heffernon replied that was correct. Council Member Dickens asked about erosion control measures and, specifically, if the City had an erosion control ordinance which should be referenced in the Resolution. Director Spagnolo responded that the City has erosion control measures within the grading ordinance. Mayor Pro Tem Ferrara referred to the Traffic Study provided by Higgins & Associates and clarified that the information was based on the trip generation rates published in the Institute of Transportation Engineers (ITE), Trip Generation, 6th Edition. He said the charts were developed based on information that was gathered in 1981 in Oregon and questioned its relevance and usefulness in evaluating this project. Mayor Lady opened the public hearing. Steven Puglishi, Project Architect and representative for Horizon Senior Housing, spoke in favor of the project. He stated that they had reviewed the staff report and they agreed with the findings and conditions of approval for the project. Chris Skiff, President - Horizon Senior Housing, spoke in support of the project. He referred to Wyndam Residence on Elm Street, a 37 -room senior assisted living facility CITY COUNCIL MINUTES JANUARY 9, 2001 PAGE 5 that was built in the City several years ago, which has served a vital need in the City. He explained that they had been looking for another site to build another type of senior housing which was more affordable and had larger units. He stated that this project, Arroyo Crest, would be a congregate care facility which would provide meals, maid service, and transportation for its residents. He explained that they can lower their cost to residents because 24-hour care was not provided. He stated that if someone needs additional care, they may contract with a Home Health Agency that is located within the building so that the resident is provided with the services they need. Mr. Skiff stated that he felt the project meets the City's Development Code and General Plan objectives. Council Member Runels asked if there would be someone on-site in case of an emergency. Mr. Skiff replied there would be a resident manager to respond to emergencies on-site. Council Member Dickens asked what the cost range is expected to be. Mr. Skiff responded that Wyndam, which is an assisted living facility, starts at about $2,200 per month. He said units in the proposed facility would start at over $1,000 per month. He said the larger 2-bedroom units would be between $2,000 and $3,000 per month. Council Member Dickens asked if the Wyndam residence was currently full. Mr. Skiff responded that it was close to full; however it fluctuates as people move in and out. Ray Abdener, 955 Via Las Aguilas, stated his residence was about 400 feet from the project and expressed concerns about traffic and on-street parking. He suggested painting the curbs red for no parking on either side of the street and installing a signal at the intersection of W. Branch and Camino Mercado. He expressed further concerns regarding erosion, water run-off, and the height of the project. He commented that his residence was the closest to the project and he did not receive notice from the City regarding the project. He stated he was opposed to the project until these concerns were addressed. Stephanie Painter, 541 Mesa View Drive, spoke in support of the project. She stated there was a need for more of this kind of senior housing in the City. Phil Kolbo, 550 Via Vaquero, spoke in support of the project. He stated he owned the commercial property just below the proposed project and lives in Phase I of Rancho Grande. He said from his home, he would be able to see the entire project. He said the project has merit for the community. He spoke of older people moving to the area, as well as the need to retain the City's residents in the community as they get older and need assistance. He acknowledged the traffic issue and stated that seniors would rely CITY COUNCIL MINUTES JANUARY 9, 2001 PAGE 6 more on public transportation. He said that the nature of this type of senior development would help mitigate traffic impacts compared to that of a high-end commercial project. Laura Kierney, spoke on behalf of Mid State Bank, which is a commercial neighbor to the project. She stated there was no objection to the project and commented that Mid State was aware of the previous two projects completed by this developer which turned out nicely and were well-conceived. Hearing no further public comments, Mayor Lady closed the public hearing. Council Member Lubin asked for clarification regarding viewshed. He stated he understood that even though the proposed project was a three-story building, the building falls below the terrain and was not three-stories above street level. Associate Planner Heffernon replied that was correct. Council Member Lubin expressed concern about the living costs for the seniors; agreed with Mr. Abdener about the traffic problems on Camino Mercado, and supported any efforts to address truck parking on the street. He stated he did not think the additional trips to this type of facility would add significantly to any traffic issues on Camino Mercado. He said he was in favor of the project. Council Member Runels referred to the 15% slope at the entrance going up to the parking lot and asked if there was any way it could be altered to lessen the grade. Associate Planner Heffernon replied that it would be difficult without removing many oak trees. Council Member Runels referred to the run-off from the project and asked if it would go down to the basin below Wal-Mart. Director Spagnolo responded the developer would be required to connect into an existing catch basin that would lead to the open air basin located on W. Branch near St. Patrick's cemetery. Council Member Runels stated he supported the project. Council Member Dickens stated there was a definite need in the community for senior housing; however, he researched whether the City needed this type of senior housing for individuals who are above the median income. He stated he had asked the Area Agency on Aging how many requests it received for this type of facility and they responded none. He said his research found there was a need for more affordable housing for seniors and this type of project would be unaffordable for most senior citizens who currently Jive here. He referred to statistics and demographics in the City's CITY COUNCIL MINUTES JANUARY 9, 2001 PAGE 7 Housing EJement regarding seniors. He stated that there were two significant issues that would need to be addressed prior to approval of the project and negative declaration. He referred to Mitigation Measures #1 and 2 and stated there should be an approved Water Neutralization Plan; and he referred to the Initial Study, Section Vl.e. Transportation/Circulation, and said it should be marked as "Potentially Significant Unless Mitigated" as it relates to hazards or barriers for pedestrians or bicyclists. He requested that the language in Condition #19 be strengthened to include benches and handrails. He stated that there should be more effort to address affordable senior housing needs. Council Member Dickens stated the second significant issue is the mass and size of the proposed project. He disagreed with Finding #2 in the resolution, which states that the proposed use will not impair the integrity and character of the district in which it is to be established or located. He addressed building height issues and referred to the Development Code, which states the maximum building height will be two-stories or 30 feet, whichever is less, and he felt that two-stories was less. He said based on his concerns, he could not support the environmental determination or the project. Mayor Pro Tem Ferrara distributed handouts of photos depicting The Manse senior housing facility on Marsh Street in San Luis Obispo. He referred to the 15% grade from the sidewalk to the project and asked for clarification regarding the length of the roadway from the sidewalk up to the project. Associate Planner Heffernon replied it was approximately 300 feet. Mayor Pro Tem Ferrara asked for clarification on how the Affordable Housing Ordinance can be reconciled with the Land Use Element of the General Plan with regard to the number of affordable units to be set aside, and also expressed concerns about the 15% grade of the slope as it relates to Americans With Disabilities Act (ADA) requirements. He commented that the project may meet ADA standards; however, it does not meet the spirit of ADA. Mayor Pro Tern Ferrara also expressed serious concern about the mass of the structure and referred to Land Use Element Policy 15 which limits the scale of buildings within both the urban and rural portions of Arroyo Grande to low profile, horizontal forms. He displayed photos of The Manse senior living facility which was located on level ground and close to public transportation and pointed out the contrast to this project's steep and potentially dangerous access. He agreed that there was a need for senior housing in Arroyo Grande, however, he was concemed about the size, scale, and location for this proposed project. He suggested that there were other areas in the City more suitable for this type of project. Further, Mayor Pro Tem Ferrara referred to the Level of Service standard for the City, and said he was not prepared to validate the traffic study for this project. Based upon concerns for the safety of seniors, traffic, and adherence with ADA, he stated he did not support the project in this location at the proposed scale. Mayor Lady said there was a need for affordable senior housing in the community; however, he had concerns regarding the proposed project. He stated the street that -_._._....._~------_... -_.~------~- CITY COUNCIL MINUTES JANUARY 9, 2001 PAGE 8 services the project would be impacted by significant development in progress on James Way. He spoke of the number of projects that have been approved for that locale, and expressed concern about the density, size, and location for this project. He shared the same concerns regarding the results of the traffic study and the steep grade to the project, and stated he did not support moving forward. Council Member Lubin moved to adopt a resolution adopting a mitigated negative declaration, instructing the Director of Administrative Services to file a Notice of Determination, and approving Conditional Use Permit Case No. 00-015, located at 597 Camino Mercado, applied for by Horizon Senior Housing. Council Member Runels seconded the motion, and on the following roll call-vote, to wit: AYES: Lubin, Runels NOES: Dickens, Ferrara, Lady ABSENT: None There being 2 A YES and 3 NOES, the motion failed. Mayor Pro Tem Ferrara moved to tentatively deny the project and directed staff to return to the Council at a future meeting with a supporting resolution for consideration. Council Member Dickens seconded the motion, and on the following roll-call vote, to wit: AYES: Ferrara, Dickens, Lady NOES: Lubin, Runels ABSENT: None There being 3 AYES and 2 NOES, the motion is hereby declared to be passed. 9.b. Proposed Ordinance Amending Portions of Title 9 of the Municipal Code Eliminating Mini-Storage as an Allowable Use in all Commercial Zoning Districts. Associate Planner Heffernon gave the staff report. She explained that the proposed ordinance would eliminate mini-storage as an allowable use in all commercial districts, but would continue to allow this use in Industrial districts. Council Member Dickens asked for clarification regarding nonconforming uses and stated there were quite a few areas in the Village with nonconforming uses. Associate Planner Heffernon clarified that the current mini-storage businesses would be considered legal nonconforming uses. Director McCants stated there was no amortization provision in the Code that would require that the use be phased out over a certain period of time. Mayor Lady opened the public hearing. ---_._._-~-~-~-- --.'....---..'., .._._~ CITY COUNCIL MINUTES JANUARY 9, 2001 PAGE 9 A letter was received for the record from Kathleen Kuentzel, Property Manager for Crocker's Locker, opposing the proposed ordinance. Erik Justesen, RRM, spoke in opposition to the proposed ordinance. He requested continuing self-storage as a conditionally permitted use. He said elimination of this use removes the City's flexibility in evaluating projects on a case-by-case basis using the conditional use process. He requested that due to the timing of filing applications for a proposed self-storage business located at Grand Avenue and Courtland that this project be exempt from the new ordinance should it be passed. He gave a brief overview of the project as reviewed and amended as a result of recommendations made by the Architectural Review Committee and Planning Commission. Mr. Justesen further stated he had requested information regarding the fiscal implications of building a self-storage versus an office building as it relates to the City's Redevelopment Agency (RDA). He said development of the site will generate revenue that benefits the City. He urged the Council to not eliminate this use categorically, and stated RRM had proposed amendments to the City's Development Code regarding the regulation of self-storage facilities. Gary White, representing the Zaddie Sunder Trust, spoke in opposition to the proposed ordinance. He said the City did not have enough industrial zoned property to locate self-storage facilities. He referred to his project that was denied and explained that his proposal was to expand an existing business that would double the capacity of the self- ~torage and have a commercial business at the front of the property. He explained that the commercial building would screen the storage units from Grand Avenue. He reviewed the process used by the City in evaluating his project. He requested that his project be exempt from the provisions of the ordinance if it was approved. Stephanie Painter, 541 Mesa Drive, spoke in opposition to the proposed ordinance. Hearing no further comments, Mayor Lady closed the public hearing. Council Member Dickens commented that the Development Code cu rrently categorically eliminates many uses on commercial properties. He referred to the efforts of the General Plan Update and stated that there would be public workshops coming up to start looking at issues for Grand Avenue. He said he did not agree that the continued use of mini-storage is one that will best utilize land on Grand Avenue. He supported the proposed ordinance. Council Member Runels stated he was concerned about eliminating the use in all commercial zones. Council Member Lubin commented that public workshops are going to be held soon to find out what is more desirable on Grand Avenue. He said he was not in favor of metaJ- sided storage units on Grand Avenue facing the street; however, he was in favor of CITY COUNCIL MINUTES JANUARY 9, 2001 PAGE 10 increased restrictions on self-storage uses. He proposed postponing consideration of the ordinance until after the Grand Avenue Corridor Master Plan public workshops. Mayor Pro Tem Ferrara stated there was a certain degree of clarification based on what the previous surveys showed. He said the three things that the community wanted for Grand Avenue was for it to be more pedestrian oriented/friendly; have a common architectural theme; and have more convenient shopping. He agreed that there was need for more clarification and definition and that was why there will be a series of workshops. He addressed comments made by Mr. Justesen regarding tax increment for the Redevelopment Agency. He said there were other ways to optimize the limited land on Grand Avenue. He also commented on the City's approach to build-out and how land is at a premium. He wondered if the City wanted to devote what land it has left to services that are available in adjacent communities. He supported approval of the Ordinance. Mayor Lady said he was in favor of the ordinance; however, he acknowledged Council Member Lubin's comments regarding the upcoming workshops. He said he was in favor of postponing consideration of the ordinance until after the workshops. Council Member Lubin moved to postpone any action on the proposed ordinance until 60 days after the Grand Avenue Corridor Master Plan public workshops. Council Member Runels seconded the motion, and on the following roll-call vote, to wit: AYES: Lubin, Runels, Ferrara, Lady NOES: Dickens ABSENT: None There being 4 AYES and 1 NO, the motion is hereby declared to be passed. 10. CONTINUED BUSINESS None. 11. NEW BUSINESS None. 12. COUNCIL COMMUNICATIONS - Council Member Dickens stated he had noticed deterioration in the use of the Design Guidelines for the Village. He referred specifically to the Prudential Hunter Realty sign at the Village Centre and requested that Council ask staff to bring back the issue of the sign. Following discussion, there was consensus of the Council to direct staff to prepare a report outlining the background of the Prudential Hunter sign; and further directing staff to bring an item forth at a future Council meeting to review the Design Guidelines for the Village. CITY COUNCIL MINUTES JANUARY 9, 2001 PAGE 11 - Mayor Pro Tem Ferrara referred to a modification Trader Joe's made to its building in order to store pallets and other market related materials. He suggested that there . should be more detail on the screening to make it more visually appealing. He requested staff prepare a simple rendering showing a screen or trellis to close the opening at the top. Following comments, there was consensus of the Council to direct staff to prepare a draft rendering for review. - Council Member Lubin requested direction regarding his authority and responsibility while serving on the regional commissions he has been appointed to. Mayor Lady advised that Council Members who are appointed to serve on regional commissions act as a representative of the City and are given broad voting rights. He explained that Council Members have the opportunity to provide Council reports regarding action of their appointed commissions on a monthly basis. - Council Member Runels gave an update on the Santa Maria water litigation, stating that a ruling is expected within 30 days on whether the northern county cities will be excluded from the lawsuit. - Council Member Runels reported that the bid had not yet been awarded for the Lopez Dam Retrofit project due to some habitat concerns expressed by U.S. Fish and Wildlife. - Mayor Lady stated he had been contacted by the City of Pismo Beach Mayor to request consensus from the Council regarding sharing of Fire Department resources. Following discussion, there was Council consensus to direct staff to schedule a joint meeting with the City Councils of Arroyo Grande, Pismo Beach, Grover Beach, and the Oceano Community Services District Board of Directors to discuss interest in studying potential joint efforts for fire department services. - Mayor Pro Tern Ferrara requested full clarification on the Council's parliamentary procedure. City Manager Adams suggested bringing the issue back as an informational item and requesting direction. 13. STAFF COMMUNICATIONS None. 14. ADJOURNMENT Mayor Lady adjourned the meeting at 9:55 p.m. to the next Regular City Council meeting of January 23,2001. CITY COUNCIL MINUTES JANUARY 9, .2001 PAGE 12 ~~ '~ Michael A. Lady, ayor~ ATTEST: 1. C 7U..- , Director of Administrative Services/ Deputy City Clerk