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Minutes 2015-10-08 SP ACTION MINUTES SPECIAL MEETING OF THE CITY COUNCIL THURSDAY, OCTOBER 8, 2015 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. CALL TO ORDER Mayor Hill called the Special City Council Meeting to order at 6:00 p.m. 2. ROLL CALL Council Members Barbara Harmon, Tim Brown, Jim Guthrie, Mayor Pro Tern Kristen Barneich, and Mayor Jim Hill were present. City Manager Dianne Thompson, City Attorney Heather Whitham, Community Development Director Teresa McClish, Associate Planner Matt Downing, Public Works Director Geoff English, and Deputy City Clerk Kitty Norton were also present. 3. MOMENT OF REFLECTION 4. FLAG SALUTE Chief Lieberman, representing Five Cities Fire Authority, led the flag salute. 5. AGENDA REVIEW: 5.a. Ordinances Read in Title Only. Council Member Brown moved, Council Member Guthrie seconded, and the motion passed unanimously that all ordinances presented at the meeting shall be read by title only and all further readings be waived. 6. PUBLIC COMMENT None. 7. CONSENT AGENDA Mayor Hill invited public comment on the Consent Agenda items. Hearing no comments, Mayor Hill closed the public comment period. Action: Council Member Harmon moved, and Mayor Pro Tern Barneich seconded the motion to approve Consent Agenda Item 7.a., with the recommended course of action. The motion passed on the following roll-call vote: AYES: Harmon, Barneich, Guthrie, Brown, Hill NOES: None ABSENT: None 7.a. Consideration of Approval of Minutes. Action: Approved the minutes of the Regular Meeting of September 8, 2015 with the corrections indicated in the Supplemental Memorandum. Minutes of City Council Special Meeting October 8, 2015 Page 2 8. PUBLIC HEARINGS 8.a. Consideration of General Plan Amendment 14-002; Specific Plan Amendment 14- 001, Conditional Use Permit 14-009, Vesting Tentative Tract Map 14-001, Development Agreement 15-002, and Draft Mitigated Negative Declaration; Subdivision of Two (2) Commercial Parcels into Thirty-Eight (38) Residential Lots, One (1) Common Area Lot, and Three (3) Commercial Lots; Location: Southwest Corner of East Grand Avenue and South Courtland Street; Applicant: NKT Commercial; Representative— RRM Design Group. Community Development Director McClish introduced the item and Associate Planner Downing presented the staff report and stated that the Planning Commission recommended that the ' Council adopt a Resolution denying General Plan Amendment 14-002; Specific Plan Amendment 14-001, Vesting Tentative Tract Map 14-001, Conditional Use Permit 14-009, and Development Agreement 15-002. Alternative Action: Other action as deemed appropriate including, but not limited to, adoption of a Resolution adopting a Draft Mitigated Negative Declaration, approving General Plan Amendment 14-002, Specific Plan Amendment 14-001, Vesting Tentative Tract Map 14-001, Conditional Use Permit 14-009 and introducing an Ordinance approving Development Agreement 15-002. Council questions ensued regarding future commercial projects resulting in similar residential components; parking, process as it relates to not following Planning Commission's recommendation; mixed use above commercial; single family versus mixed use; and affordable versus attainable housing. Debbie Rudd, RRM Design Group, gave a summary of the project and the process and responded to questions from Council regarding parking. Mayor Hill opened the public hearing. Speaking from the public were: Heather Jensen, Arroyo Grande, in support of the project; Greg Steinberger, Arroyo Grande, spoke regarding strength of character; Linda Drummy, spoke regarding a petition and opposed the project; John Lovern, Arroyo Grande, expressed concern regarding parking and trust of government officials; Terry Berkley, Arroyo Grande, presented a letter to Council regarding project concerns; Patty Welsh, Arroyo Grande, read a letter from Beatrice Spencer opposing the project; Mike Byrd, Arroyo Grande, spoke in support of the project and commented on affordable housing and how it relates to the General Plan; Bill Hales, local business owner, spoke in support of the project and regarding the applicant's dedication to the community; April McLaughlin, Arroyo Grande, opposed the project and spoke about transparency as it relates to Planning Commission minutes; John Mack; Arroyo Grande, requested information regarding the MOU between the applicant and the City, referred to a letter and drawings and made suggestions regarding the size and design of the project; Julie Tacker spoke regarding an error in a courtesy notice, transparency of the project, and requested the project be sent back to the Planning Commission; Jeremy Freund, Arroyo Grande, expressed concern regarding the truck delivery route as it relates to safety of children; Colleen Martin, Arroyo Grande, urged the Council to have confidence in the Planning Commission and for staff to slow down to avoid errors; Caren Ray, Arroyo Grande, commended staff, the applicant, and the Council, and urged the Minutes of City Council Special Meeting October 8, 2015 Page 3 community to respect the City's processes; Ken Dalebout; Arroyo Grande Community Hospital Chief Administrator, spoke for promotion of housing; Mike McAustin, Arroyo Grande, spoke in support of the City Council, of the project and of the applicant; Ashley Acres, Arroyo Grande, spoke in support of housing for young families and in support of the project; Mike O'Morrow, Arroyo Grande, spoke in support of the project and of the applicant's willingness to make changes, as needed; Frank Schiro, Arroyo Grande, spoke in support of the project, the applicant and staff. Hearing no further public comments, Mayor Hill closed the public hearing. City Attorney Whitham clarified that a new hearing was taking place and that Council should provide the public with their full thoughts on the project. Council comments ensued regarding the proposed project, including acknowledgement of the work of the Planning Commission; the City's processes; self-correcting issues involving parking; the history of Berry Gardens as it relates to the development of East Grand Avenue commercial; change in the times and utilization of smaller shops and restaurants; that vertical and horizontal mixed use projects are allowed; that more residential would generate less traffic; not a desirable site for larger commercial stores which prefer freeway locations; that smaller residential housing is needed and is considered affordable/attainable by design; support for a quality development; that the City is mandated by the State to provide different types of housing; that the developer needed an MOU and it was voted on unanimously by Council during a public meeting. Concerns were expressed regarding parking in the future; and that the term mixed use should be eliminated. Support expressed for the commercial component of the project and its location; support for landscape easements; concern about potential of developers not wanting to do business in Arroyo Grande; importance of commercial business; concern about City employees not being able to afford to live in Arroyo Grande; support for the applicant, Mr. Tompkins, and his concern for the community. Action: Mayor Pro Tern Barneich moved to approve a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ADOPTING A MITIGATED NEGATIVE DECLARATION AND APPROVING GENERAL PLAN AMENDMENT 14-002, SPECIFIC PLAN AMENDMENT 14-001, CONDITIONAL USE PERMIT 14-009, AND VESTING TENTATIVE TRACT MAP 14-001; LOCATED AT THE SOUTHWEST CORNER OF EAST GRAND AVENUE AND SOUTH COURTLAND STREET; APPLIED FOR BY NKT COMMERCIAL", with the addition that Condition of Approval No. 39 be expanded to include all frontage improvements in exchange for the elimination of Conditions of Approval 40 through 43. Council Member Guthrie seconded the motion and asked for clarification. There was brief discussion-clarifying the motion. Mayor Pro Tern Barneich amended the motion to include that approval is based upon the revised site plan called EX 1, dated September 4, 2015, presented at the September 8, 2015 City Council meeting, with the 36 units, and the 4 vertical units being removed from the commercial. City Attorney Whitham clarified that the documents and the attachments would be modified to reflect the revised project including removal of the 4 units, and the Specific Plan will be modified to delete the reference to the residential above the commercial. Minutes of City Council Special Meeting October 8, 2015 Page 4 Council Member Guthrie seconded the amended motion, and the motion passed on the following roll-call vote: AYES: Barneich, Guthrie, Harmon NOES: Brown, Hill ABSENT: None City Attorney Whitham read the full title of the Ordinance in Item 8.a. Action: Council Member Guthrie moved to introduce an Ordinance entitled: "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING DEVELOPMENT AGREEMENT 15-002 FOR DEVELOPMENT OF PROPERTY LOCATED AT THE SOUTHWEST CORNER OF EAST GRAND AVENUE AND COURTLAND STREET", with the attached exhibits modified to reflect the revised project description. Mayor Pro Tern Barneich seconded, and the motion passed on the following roll-call vote: AYES: Guthrie, Barneich, Harmon, Hill NOES: Brown ABSENT: None Mayor Hill called for a break at 8:15 p.m. The Council reconvened at 8:25 p.m. 9. OLD BUSINESS: 9.a. Consideration of Amendment to Consultant Services Agreement with Water Systems Consulting Inc. for Technical Support Services for the Northern Cities Management Area Work Program. Community Development Director McClish presented the staff report and recommended that the Council receive and file additional information regarding the previous approval and authorization of Amendment No. 7 to the Agreement for Consultant Services with Water Systems Consulting, Inc. In response to comments by Council Member Brown, City Attorney Whitham confirmed that a vote would be appropriate for this item. Council comments and questions ensued, and Public Works Director English provided further information. Mayor Hill invited public comment. Speaking from the public were: Julie Tacker, expressed concern with Oceano Community Services District (OCSD) not paying; and Patty Welsh, Arroyo Grande, expressed concern that OCSD is being subsidized by the other cities. Hearing no further public comment, Mayor Hill closed the public hearing. Council comments ensued regarding review of the contract next year and concerns regarding abandoning the contract at this time. Minutes of City Council Special Meeting October 8, 2015 Page ,5 Action: Council Member Guthrie moved to reaffirm the approval of the Water Systems Consulting, Inc. contract and directed staff to explore a request for proposals with neighboring cities for next year. Mayor Pro Tern Barneich seconded, and the motion passed on the following roll-call vote: AYES: Guthrie, Barneich, Harmon, Hill NOES: Brown ABSENT: None Council Member Guthrie requested, with Council consensus, that the City Manager bring back options on how to deal with the issues regarding OCSD. 10. ADJOURNMENT Mayor Hill adjourned the meeting at 8:54 p.m. f J Hill, Mayor TEST: Kitty N on, Deputy City Clerk (Approved at CC Mtg to-077-0b/S)