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Minutes 2008-11-25MINUTES REGULAR MEETING OF THE CITY COUNCILIREDEVELOPMENT AGENCY TUESDAY, NOVEMBER 25, 2008 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. CALL TO ORDER Mayor/Chair Ferrara called the Regular City Council/Redevelopment Agency meeting to order at 7:01 p.m. 2. ROLL CALL City Council/RDA: Council/Board Members Joe Costello, Jim Guthrie, Ed Arnold, Mayor Pro Tem/Vice Chair Chuck Fellows, and Mayor/Chair Tony Ferrara were present. City Staff Present: City Manager Steve Adams, Assistant City Attorney Mike McMahon, Director of Administrative Services/City Clerk Kelly Wetmore, Director of Financial Services Angela Kraetsch, Director of Community Development Rob Strong, Director of Parks, Recreation and Facilities Doug Perrin, and Associate Planner Teresa McClish. 3. FLAG SALUTE Mayor Ferrara led the Flag Salute. 4. INVOCATION Pastor George Lepper, Peace Lutheran Church, delivered the invocation. 5. SPECIAL PRESENTATIONS None. 6. AGENDA REVIEW 6.a. Ordinances Read in Title Only. Council Member Costello moved, Council Member Arnold seconded, and the motion passed unanimously that all ordinances moved for introduction or adoption at the meeting shall be read in title only and all further reading be waived. Grea Moore, Vice President of the Village Improvement Association, gave a brief overview of upcoming holiday activities to be held in the Village. He thanked the City's Parks Department for assisting with putting up lights in the Village, and encouraged citizens of Arroyo Grande to shop locally to support the local businesses. 8. CONSENT AGENDA Mayor Ferrara invited members of the public who wished to comment on any Consent Agenda Item to do so at this time. No public comments were received. Action: Council/Board Member Costello moved, and Council/Board Member Guthrie seconded the motion to approve Consent Agenda Items 8.a. through 8.1., with the recommended courses of action. The motion passed on the following roll-call vote: AYES: Costello, Guthrie, Arnold, Fellows, Ferrara NOES: None ABSENT: None Minutes: City Council/Redevelopment Agency Meeting Tuesday, November 25, 2008 Page 2 8.a. Cash Disbursement Ratification. Action: Ratified the listing of cash disbursements for the period October 16, 2008 through November 15, 2008. 8.b. Consideration of Statement of Investment Deposits. Action: Received and filed the report of current investment deposits as of October 31, 2008. 8.c. Consideration of Approval of Minutes. Action: Approved the minutes of the Regular City Council Meeting of October 28, 2008, as submitted. 8.d. Consideration of Side Letter of Agreement Modifying the FY 2008-09 through FY 2009- 10 Memorandum of Understanding with the Arroyo Grande Police Officers' Association. Action: Adopted Resolution No. 4139 as follows: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING A SIDE LETTER OF AGREEMENT TO THE ARROYO GRANDE POLICE OFFICERS' MEMORANDUM OF UNDERSTANDING". 8.e. Consideration to Adopt a Resolution Approving an Application by First Assembly of God to Drill and install Replacement Well on Property Zoned Public Facility; APN 006- 095-020; 207 Pilgrim Way. Action: Adopted Resolution No. 4140 as follows: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING AN APPLICATION BY FIRST ASSEMBLY OF GOD TO DRILL A REPLACEMENT IRRIGATION WELL ON A PROPERTY ZONED PUBLIC FACILITY; APN 006-095-020; 207 PILGRIM WAY". 8.f. Consideration to Purchase aMid-Sized Pick Up Truck. Action: Authorized staff to purchase a mid sized pick up truck and the Extended Care Warranty from Christianson Chevrolet in the amount of $19,690.04. 8.g. Consideration of Temporary Use Permit Case No. 08-018 Authorizing the Closure of City Streets for the 6"' Annual Arroyo Grande Village Improvement Association Christmas Parade, November 30, 2008. Action: Adopted Resolution No. 4141 as follows: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING A SIDE LETTER OF AGREEMENT TO THE ARROYO GRANDE POLICE OFFICERS' MEMORANDUM OF UNDERSTANDING". 8.h. Consideration of Funding for SLO Green Build Program. Action: Approved the expenditure of $2,000 for support of the SLO Green Build Program. 8.i. Consideration of Consultant Services Agreement with Penfield & Smith for the Design of the West Branch Street Resurfacing Improvements Capital Improvement Project. Action: 1) Approved an agreement with Penfield & Smith in the amount of $27,340 for the West Branch Street Resurfacing capital improvement project (PW-2008-08); 2) Authorized the Mayor to execute the agreement; and 3) Authorized the City Manager to approve contract amendments not to exceed 10% of the $27,340 for unanticipated costs during the design phase of the project. 8.j. Consideration of Consultant Services Agreement with Cleath 8 Associates to Analyze Alternative Test Well Sites in the Vicinity of the Pearwood Avenue Basin. Action: 1) Approved a consultant services agreement with Cleath & Associates in the amount of $13,500 to analyze alternative test well sites in the vicinity of the Pearvvood Avenue basin (Capital Improvement Project PW-2008-10); 2) Authorized the Mayor to execute the agreement; and 3) Authorized the City Manager to approve contract amendments not to exceed 10% of the $13,500 for unanticipated costs during the design phase of the project. Minutes: City Council/Redevelopment Agency Meeting Page 3 Tuesday, November 25, 2008 8.k. Consideration of First Amendment to Agreement with MNS Engineers for Consultant Engineering Services. Action: 1) Approved a First Amendment to the Agreement for Consultant services with MNS Engineers, Inc. to increase the "not to exceed" amount by $4,890 for the design of the City Hall Parking Lot Bioswale/Drainage Filter; Crown Hill (Paulding Middle School) Sidewalks; Elm Street Sidewalks; and Montego Street/Hillcrest Drive Intersection Improvements capital improvement projects (PW-2008-07); and 2) Authorized the Mayor to execute the amendment. 8.1. Consideration of Establishing a Job Description and Salary Range for the Part-Time Building Permit Technician Position. Action: Adopted Resolution No. 4142 as follows: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ESTABLISHING A JOB DESCRIPTION AND SALARY RANGE FOR THE PART-TIME BUILDING PERMIT TECHNICIAN POSITION". 9. PUBLIC HEARINGS 9.a. Continued Public Hearing -Consideration of Adoption of a Resolution Denying an Appeal and Upholding the Parks and Recreation Commission's Approval of Tree Removals. Director of Parks, Recreation, and Facilities Perrin presented the staff report and recommended the Council adopt a Resolution denying the appeal and upholding the Parks and Recreation Commission's approval to allow removal of two eucalyptus trees at 415 East Branch Street subject to conditions of approval in Exhibit "A". Staff responded to questions from Council. Mayor Ferrara opened the public hearing. Milton Haves, applicant, referred to his business office on E. Branch Street and expressed concem with health and safety issues on the site related to the eucalyptus trees; stated the several branches have fallen off the tree and have hit his warehouse and have come close to hitting kids walking near the creek; stated that the trees are not indigenous to the area and are self-pruning, which means that they drop branches at great weight; and noted that he was offering replacements of Redwood trees which are indigenous to the area and grow well here. Grea Moore, Village business owner, stated he had recently moved part of his warehouse operation to Mr. Hayes' building and was made aware of this situation. He stated that the trees are capable of hitting the structure and expressed concern about the safety issue and also damaging his goods inside the building. He supported the Parks and Recreation Commission's recommendation of approval to remove and replace the trees with a native species. Upon hearing no public comments, Mayor Ferrara closed the public hearing. Mayor Pro Tem Fellows commented that when Mr. Hayes first applied for the permit to remove the trees, the City's Parks Supervisor, Kevin Rocha, went to the site and could not make any findings for the removal. He noted the Director of Parks, Recreation and Facilities stated the trees were in good general health. He said that Mr. Hayes stated on his application that the tree branches just missed hitting a group of boys on the property. He stated that he had gone to the site and estimated that the two branches on the ground have been there for three or four years and are covered with debris and overgrown with other plants. He said he did not see any other branches that have fallen and wondered about the current urgency to remove the trees. He asked the Council to uphold the appeal, allowing the trees to stay until the proposed project on the adjacent site comes forward with Minutes: City Council/Redevelopment Agency Meeting Page 4 Tuesday, November 25, 2008 a proposed landscape plan and erosion control measures for the creek. He stated that there is a problem in the City with allowing trees to be cut down without any replacement landscape plan or project. He commented that if the appeal is denied and the trees come down, there are no safeguards in place to make sure landscaping is replaced. He further noted that staff mentioned the trees cannot be removed until mid-April through October. Council Member Guthrie provided the following comments: - Commented that during initial review, he concurred with the Parks, Recreation and Facilities Director's decision that was based on the Code, there was no proper reason for removal, and no significant public danger; however, when walking the site near the creek, he observed the eucalyptus trees sitting in the middle of a potential wetland area and is not the most appropriate tree to be there. - Noted that if the trees were in a more public area, they would not be taken down and proper care and maintenance would be required; - Can see advantage in long run to removing the trees if the creek area is to be enhanced; - Initial feeling is to uphold the appeal and leave the trees in place; however, he was open to removal of the trees if the long term solution is to improve the creek area by replacing the trees with a more appropriate species. Council Member Arnold provided the following comments: - Commented that during initial review, he thought the trees should not be removed; however, these are blue gum eucalyptus trees which are not desirable; - Commented that he spoke with a botanist who informed him that eucalyptus trees are bad for the water table; - Believes the trees are a fire hazard, are dirty and unsafe, and they are located in a creek bank where the ground is less stable; - Stated the applicant is willing to replace the trees; - Referred to another project off of James Way where it was being urged to remove eucalyptus trees from the creek area; Acknowledged there have been mixed thoughts with regard to eucalyptus trees; however, there has been discussion to identify a list of desirable and undesirable trees and blue gum trees are undesirable; - Supported the Parks and Recreation Commission's decision to allow the trees to be removed with the conditions of approval. Council Member Costello provided the following comments: Believes there is some measure of a public safety risk, particularly during a heavy rain storm; - Shared concerns with Mayor Pro Tem Fellows regarding the need for a defined replacement tree or landscape plan; Can support denying the appeal and upholding the Parks and Recreation Commission's approval for removal if the conditions of approval include specific tree replacements and that they are the largest specimen possible; - Agreed that trees should not be removed until mid-April or thereafter; - Agreed with condition that the stumps must be removed and ground off-site to prevent any recurrence of the blue gum trees; - Supported denying the appeal and upholding the Parks and Recreation Commission's approval of the tree removal with the appropriate conditions. Minutes: City Council/Redevelopment Agency Meeting Page 5 Tuesday, November 25, 2008 Mayor Ferrara provided the following comments: Commented this has drawn attention to the issue of eucalyptus trees, particularly blue gum; - Commented on work in progress to develop a list of desirable and undesirable City trees; - Commented on his research regarding blue gum eucalyptus trees, particularly in Australia, and noted that they have prohibitions of camping activities near eucalyptus trees; Commented on area near Petaluma where there is a stretch of road with mature tree groves of blue gum eucalyptus trees on both sides of the road for'/: mile and that the area is posted with warning signs which state "falling trees", as the area had experienced unpredictable events; - Noted the safety hazard; - Commented that blue gum eucalyptus trees are highly flammable and their proximity to structures is a potential fire hazard; Commented on the tree ordinance and noted that the Council had directed staff to revisit the list of desirable versus undesirable trees; referred to City of Sausalito which has a model tree ordinance of which blue gum trees were at the top of the undesirable tree list; Stated he would like to see the trees come down; they are not attractive, they are not safe, and the more the removal of the trees can be incorporated into a larger landscape plan, the better off the City will be; - Would support the Parks and Recreation Commission's decision to allow the trees to be removed after April 15"' subject to specific conditions, and that there be a plan submitted that shows how the removal and replacement of the trees and the enhancement of the area can be integrated into the development of the adjacent project. Further discussion ensued to enhance the conditions of approval. Mayor Pro Tem Fellows referred to the conditions in Exhibit A, which should be refined to require a comprehensive plan that indicates the species, the number and location of each shrub and tree, and how they will be irrigated and cared for. He stated he could then support a motion to allow the trees to come down. He further stated that in the meantime, he would like to see staff come up with some way to clarify the policy regarding removal of trees where a project is proposed and approved, but then it results in a vacant lot with no trees. Action: Council Member Arnold moved to adopt a Resolution as follows: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DENYING AN APPEAL AND UPHOLDING THE PARKS AND RECREATION COMMISSION'S APPROVAL OF TREE REMOVALS" subject to the conditions in Exhibit A, with the addition of Condition #6 which would require that a replanting and irrigation plan be submitted to the Parks, Recreation and Facilities Director for approval before trees are to be removed, and the addition of Condition #7 to require the improvements to be coordinated and consistent with any planned ongoing or approved adjacent projects. Council Member Costello seconded. Brief discussion ensued regarding the status of the proposed project on the adjacent property as it relates to coordinating efforts on the landscape plan. The motion passed on the following roll call vote: AYES: Arnold, Costello, Guthrie, Fellows, Ferrara NOES: None ABSENT: None Minutes: City Council/Redevelopment Agency Meeting Page 6 Tuesday, November 25, 2008 10. CONTINUED BUSINESS ITEMS 10.a. Consideration of Tourism Study Recommendations. [COUNCILIRDA] City Manager/Executive Director Adams presented the staff report and recommended the Council/Board: 1) Accept the findings of the San Luis Obispo County Economic Vitality Corporation (EVC) tourism studies; and 2) Direct staff to meet with representatives of the Chamber of Commerce and other organizations to pursue formation of a tourism promotion committee to develop a vision and plan far implementation of other recommendations of the study. City Manager Adams responded to questions from Council concerning the proposed committee; marketing strategies; clarification that the creation of a County-wide Business Improvement District (BID) did not move forward as a majority of cities have established their own BID's; and whether the study indicated the reasons for the growth in hotel occupancy and the transient occupancy tax between 2004-05 and 2007-08. Mayor/Chair Ferrara invited comments from those in the audience who wished to be heard on the matter, and upon hearing none, he closed the public comment period. Council/Board comments ensued in support of staff's recommendations; support for pursuing formation of a tourism promotion committee; identifying the City's target group; acknowledgement of the need to focus on this effort in light of the economy; clarification that transient occupancy tax is based on the room rate and that inflation has resulted in increases in the transient occupancy tax; that the cities are recognizing the need to work together and pool its resources to market the cities in San Luis Obispo County; that there should be Council representation on the committee; that there is a need to establish a dedicated tourism marketing funding source, such as a BID; that ongoing discussions regarding these matters should be held with hotel owners; that the City got its money worth for the study; that it is important to establish a consistent theme, logo, and positioning statement that ties back to the City's history; that the wine industry and the area's wineries were left out of the Tourism Product Analysis and more emphasis is needed in this area as it is a huge element in the community; that marketing materials are already available and more coordination between all the local organizations is needed to organize a cooperative marketing effort; and that once the committee is formed, everything will fall into place and will include all the stakeholders. Mayor Pro TemNice Chair Fellows referred to page 14 of the study regarding special events and noted he would like to see the Harvest Festival remain a small town affair. Action: Council/Board Member Arnold moved to: 1) Accept the findings of the San Luis Obispo County Economic Vitality Corporation (EVC) tourism studies; and 2) Direct staff to meet with representatives of the Chamber of Commerce and other organizations to pursue formation of a tourism promotion committee to develop a vision and plan for implementation of other recommendations of the study. Mayor Pro TemNice Chair Fellows seconded, and the motion passed on the following roll call vote: AYES: Arnold, Fellows, Guthrie, Costello, Ferrara NOES: None ABSENT: None Mayor Ferrara called for a break at 8:20 p.m. The Council reconvened at 8:35 p.m. Minutes: City Council/Redevelopment Agency Meeting Tuesday, November 25, 2008 Page 7 11. NEW BUSINESS ITEMS 11.a. Consideration of aPre-Application Review 08-006; East Branch/North Mason/Le Point Streets ("Scolari Property"). Associate Planner McClish presented the staff report and recommended the Council review and comment on the applicant's proposed Mixed Use Subdivision and Planned Unit Development project located at the northeast corner of N. Mason Street and E. Branch Street. Staff responded to questions from Council concerning inclusionary housing policies. Mayor Ferrara opened the item up for public comment, inviting the applicant or representative to address the Council first. Steven Pualisi, project architect, thanked staff for the presentation; assured the Council the intent was not to force this particular design on the City, however, it is the direction the applicant would like to go with a mixed use project containing market rate housing for sale; support for City-House concept allowing for sale housing in the Village Core; the ability to create apartments, the ability to create commercial; and to provide cone-acre dedicated City park near the creek. He noted a number of meetings have been held with planning staff, the Staff Advisory Committee, the Architectural Review Committee, and the Planning Commission. He stated with the Council's comments, they are hoping to have a clear understanding of what is expected of the project and any modifications to the project. He explained the next step would be to redesign the project, formally submit the application, and begin the EIR process. He said they do not intend to proceed with the EIR until after they have incorporated all the City comments into their design. He reviewed the key issues that need to be addressed such as the balance of commercial versus residential; access and circulation as it relates to E. Branch Street; the market (he explained that Mr. Scolari owns the property; however, he has no intention of managing or operating a market any longer on the property) and explained that this will be a "for lease" or "for rent" commercial project; however, it will not be designed for a specific use. He said it was not the intention to exclude a market, but cannot guarantee there would be a market on this project. He noted that both the ARC and the Planning Commission have spoken in favor of a cafe on the creek, a bed and breakfast, or a boutique hotel. He stated that while they would not design a building for a specific use; however, the design shows a terraced patio on the creek that could be a likely candidate for a cafe. He reiterated they are not the leasing agent, they are only proposing and design commercial space for lease. He acknowledged the proposed architectural character is not desired. He also noted, given the comments received so far, the project will not have one single, large building. Mr. Puglisi then responded to questions from Council regarding building size, drainage into the creek, proposed stone architectural features, and the proposed retaining wall along Le Point Street. David Foote, landscape architect, FIRMA, gave a PowerPoint presentation (on file in the Administrative Services Department) on the proposed landscape plan for the project which includes a creek enhancement and creekside park plan. Mayor Pro Tem Fellows referred to the map and asked where the corner of the neighboring property is located which crosses the creek and asked questions regarding drainage. Mr. Foote pointed out the property line, indicated they had met with the property owner regarding the proposed plan, and responded to the question regarding drainage. Susan Flores, E. Branch Street, stated she had attended the Planning Commission meeting; referred to the JJ's Market building, stated it was erected in 1917, and noted the Council has looked at projects in the past where buildings have been preserved and restored; and stated it was important not to lose this building due to its history and also to maintain the Historic District. She Minutes: City Council/Redevelopment Agency Meeting Page 8 Tuesday, November 25, 2008 stated the project is good; she likes the plan for the creek; and she would like to see more commercial and less residential. Upon hearing no further public comments, Mayor Ferrara closed the public comment period. Mayor Ferrara asked if the Historical Resources Committee (HRC) had looked at the JJ's building yet. Associate Planner McClish responded no; however, the applicant has a preliminary report of the building through their consultants and that information was just received and would be presented to the HRC. Mayor Ferrara agreed that HRC review needs to be a step in this process. Council Member Arnold provided the following comments: - Asked if the City Council could condition any of the space to have a specific use, such as a restaurant. Associate Planner McClish responded not through zoning provisions alone; the Code allows uses by specific permit level in specific zones; the Village Core Downtown allows for retail; and the City's Economic Development policies encourage certain uses. City Manager Adams noted that Planned Unit Developments and Specific Plans can identify particular uses; however, a Specific Plan is not required with this project. - Likes the park and walkway along the creek which would be a huge enhancement for the City and for the property, and supports the proposed concept; - Likes the stone architectural feature for the buildings; however, he acknowledged the concerns regarding the use of faux stone and noted it will be important that the commercial buildings have a variety in design; - Likes the parking garage design; - Does not like the length of the commercial building and would like to see it broken up into smaller buildings; - Would like to see the traffic study; believes that access on E. Branch Street is important as this will be a destination point; an entrance on E. Branch Street would provide a natural break between buildings; - Would like to see a restaurant as a component of this project; specifically located on the corner of Branch Street at the creek; suggested a building with a cantilevered patio over the creek in order to meet the City's creek setbacks and achieve a larger footprint without having an environmental impact; - Concerned with quantity of residential as it relates to location, and preferred to see more commercial; - Would prefer to see a 2-story commercial building on the corner of Mason and E. Branch rather than an apartment over commercial; - Did not understand the Harden Street access to only the parking garage as proposed; suggested using Harden Street as the main entrance to the project; - With regard to the loss of the grocery store, he stated it would be nice to retain it; however, he understood the economics of the matter and it was unfortunate that JJ's Market does not want to remain there; - Looking for residential component to have character, uniqueness, and not have every building look the same; - Depending on final grade, suggested another option may be to design three-story residential units along Le Point Street; - With regard to circulation, there might be some benefit to access the residential component only from Le Point Street, with a parking structure between lots 7 & 13; - Agreed with PC and ARC comments regarding a small boutique/hotel; - Acknowledged narrow width of Mason Street and the potential for prohibiting parking on both sides of the street up to Harden Street. Minutes: Cify Council/Redevelopment Agency Meeting Page 9 Tuesday, November 25, 2008 Council Member Costello provided the following comments: - Noted that there needs to be sufficient emergency access for fire apparatus; - Suggested a secondary access from Harden Street which could loop around to Le Point Street in order to separate the residential and commercial uses; - Supported the proposed creek enhancements and creek plan; - Does not like the mix of residential and commercial in terms of the current layout and would like to see a better balance between the two uses; - Does not want to condition specific uses; however, he would like to see a grocery store and a restaurant included; - Does not support the long commercial building along E. Branch Street; does not fit the Village and it should be broken up into smaller buildings; - Agreed a traffic study should be considered as it relates to a driveway entrance from E. Branch Street; - Would like to see more commercial brought outward from E. Branch Street; suggested a second commercial building where lots 10, 11 & 12 are with residential on top; - Will probably need to reduce the parking on Mason Street as it cannot be widened. Council Member Guthrie provided the following comments: - Commented that .desired uses may be precluded by the proposed size and shape of the proposed commercial space; - Should have one of the lease spaces, perhaps the corner building, fit what he would consider a normal retail configuration, which is more square and large enough for a normal retailer; - With regard to a restaurant, the design could encourage that type of use with a deck that makes it a desirable use; - Noted that Harden Street is out of proportion to its usefulness and suggested that Harden Street be used more efficiently; - Concerned about the amount of residential as it relates to total square footage of space, not with the number of units and suggested smaller units which would increase the amount of space for commercial uses; - Referred to affordable housing and supported the inclusion of apartments; - Likes the parking garage; suggested expanding the garage to accommodate more commercial; - Supports the creek enhancement plan; - Acknowledged that the proposed architecture will be addressed based on concerns already expressed; - With regard to access, he likes the current configuration and noted that access from E. Branch could be awkward; - Would like to see an increase in commercial and to use Harden Street more efficiently. Mayor Pro Tem Fellows provided the following comments: - Acknowledged this as last large piece of land to be developed in the Village and it is an important part of Arroyo Grande; - Acknowledged the Tourism Study recommendations which include maintaining a comfortable, small town feel and promoting the City's history and culture; commented on public comments to preserve the charm and character of the Village; - Acknowledged that the applicant had heard enough about the proposed architecture; - Likes the proposed park and creek plan; suggested that drainage could go into the swale instead of the creek; - Agreed with suggestion for encouraging a corner restaurant with a deck; - Addressed Harden Street as entrance to the residential area and acknowledged Council Member Guthrie's ideas; Minutes: City Council/Redevelopment Agency Meeting Page 10 Tuesday, November 25, 2008 - Believes that one entrance from Mason Street is needed; - Stated the residential area should be smaller and agreed with the Planning Commission's suggestion to eliminate the lower four residential units or move them to the top of the site; he sees five units that should be eliminated; - Commented that the dividing line between Village Mixed Use and Village Downtown Commercial is the upper side of Harden; however, he suggested the lower side could be the dividing line between commercial below and residential above with access at Harden Street and a right-turn only exit at Le Point Street; - Referred to green development and stated that demolishing the 1917 historic JJ's building instead of conserving them is a waste of resources; and demolishing the 1960-70's home on Le Point Street is also a waste of resources and should be adaptively reused as a residence; noted there is a vacant lot next door that could be used for a new house; cannot support demolishing the two structures; - Unsure about an entrance on E. Branch Street; however, if a market were to be located on the site, he would like to see accessible parking from E. Branch Street; - Would like to see a market remain on the site; - Agrees that the project should be half residential and half commercial; - Referred to project on Bridge Street in Cambria as it relates to desirable architecture and encouraged the applicant to visit; - Supports a larger building on the corner to accommodate a retail use such as a market; - Encouraged continued and enhanced pedestrian access to adjacent properties; - Expressed concern regarding the use of faux stone and suggested use of real stone or brick; - Expressed concern with horizontal siding because certain types can warp and sag; - Believed the mass and scale is too much for the site; concerned with grading and use of retaining walls; - Unsure about the parking structure; - Agreed that an EIR will be necessary; - Noted that the project will create more traffic on Le Point Street to Tally Ho, there are no sidewalks on Tally Ho, and this will need to be addressed if the project moves forward; - Would like to see the creek path extended to Le Point Street. Mayor Ferrara provided the following comments: - Referred to Economic Element policies that are underutilized when it comes to directing specific uses; - Commented on reconfiguring of buildings into more usable space for the most productive use; likes proposed layout with minor exceptions; - The project has to be reconfigured to accommodate visitor serving uses and have an active commercial frontage to draw people, such as an upscale small grocery/deli and/or a restaurant; - Supported the suggestion of breaking up the mass of the long, linear building; - Referred to the proposed second story apartments on the corner building and agreed that relocating the apartments would be beneficial due to the noise factor on E. Branch Street; - Likes the configuration of townhomes in general; - Likes the proposed density because the Housing Element and development principles for the urban core (Village Downtown) encourage for sale units so that families will move here and be able to walk to work if they have a small business in town; - Apartments over office use is appropriate in certain areas on the site; - Supports the creek enhancement and park plan; - Wants to look further at access on E. Branch Street and the circulation issues; not too concerned as long as there are other entrances to the site that will diffuse some of the traffic; - Commented that although the idea for the creek plan is good, must also address flow concerns; Minutes: City Council/Redevelopment Agency Meeting Page 11 Tuesday, November 25, 2008 - Supports encouraging use of outside patios in relation to the creek; - Agreed that the HRC should review the plan. Council Member Arnold added that he could support Council Member Guthrie's idea of potentially using some of the Harden Street easement for additional garage space or potentially widening Mason Street up to that point to allow parking on one side of the street. He also agreed that the corner building should be more square or L-shaped to accommodate a larger type retail use. He questioned the topography where the proposed creek path was proposed. Mr. Puglisi acknowledged and summarized the Council's comments to provide more commercial and less residential; the idea of apartments over commercial; for sale units versus rental units; the architecture changes; and adjusting the configuration of the commercial to give every opportunity to the types of retailers. He thanked the Council for their comments. There was no formal action on this item 11.b. Consideration to Adopt the City's Storm Water Management Plan. Director of Public Works Spagnolo presented the staff report and recommended the Council review the City's draft Storm Water Management Plan; 2) Adopt a Resolution approving the plan contingent upon resolution. of the issues identified in staff's proposed comments to the Regional Water Quality Control Board; and 3) Propose any additional comments prior to the end of the public review period. City Manager Adams reviewed the proposed letter to the Regional Water Quality Control Board and outlined the issues to be resolved. Mayor Ferrara referred Director Spagnolo to the study that was done on the Arroyo Grande Creek for Zone 1/1A by Swanson Hydrology which was accepted by the Department of Water Resources, and stated that Regional Water Quality Control was part of the review of that study as well. He requested that Director Spagnolo follow up with Regional Water Quality Control to remind them that the report was accepted. In response to a question by Council Member Arnold about where the other cities in the County are in this process, Director Spagnolo responded that most of the cities have their plans submitted to the Board and are in the 60-day review process. Further discussion ensued concerning hydromodification control measures that are being proposed by the Regional Water Quality Board which appear to be more stringent than other regions around the State. Mayor Ferrara invited comments from those in the audience who wished to be heard on the matter, and upon hearing no public comments, he closed the public comment period. Council comments included support for staff's recommendations; and clarification regarding the public review period. Mayor Ferrara noted he had attended a presentation by SLO Green Build where they discussed the ability for run-off from roofs and patios to drain onto existing lawns and landscape and not out into the street. He noted that these drainage design principles are being integrated into City policies. Action: Mayor Pro Tem Fellows moved to adopt a Resolution approving the Plan contingent upon resolution of the issues identified in staff's proposed comments to the Regional Water Quality Control Board, as follows: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO Minutes: City Council/Redevelopment Agency Meeting Page 12 Tuesday, November 25, 2008 GRANDE APPROVING THE CITY'S STORM WATER MANAGEMENT PLAN". Council Member Guthrie seconded, and the motion passed on the following roll-call vote: AYES: Fellows, Guthrie, Arnold, Costello, Ferrara NOES: None ABSENT: None 11.c. Consideration of Fiscal Year 2008-09 First Quarter Budget Status Report. [COUNCIL/RDA] Director of Financial Services Kraetsch presented the staff report and recommended the Council/Board approve carryover appropriations as shown on Schedule A and approve budget adjustments and recommendations as listed in the Quarterly Financial Report and shown on Schedule A. Mayor/Chair Ferrara invited comments from those in the audience who wished to be heard on the matter, and upon hearing no public comments, he closed the public comment period. Action: Council/Board Member Guthrie moved to approve carryover appropriations as shown on Schedule A and approve budget adjustments and recommendations as listed in the Quarterly Financial Report and shown on Schedule A. Council/Board Member Arnold seconded, and the motion passed on the following roll-call vote: AYES: Guthrie, Arnold, Costello, Fellows, Ferrara NOES: None ABSENT: None 12. CITY COUNCIL REPORTS a. MAYOR TONY FERRARA: (1) San Luis Obispo Council of Governments/San Luis Obispo Regional Transit Authority (SLOCOG/SLORTA). Has not met since last report. (2) South San Luis Obispo County Sanitation District (SSLOCSD). Have not had time to revisit the recycled water issue in John Wallace's absence; however, Pismo Beach is not going to participate and it is still unknown whether Oceano will participate. (3) Brisco/HalcyonlHwy 101 Interchange Project Subcommittee. Staff is continuing to work with Caltrans at this time. (4) Other. Attended a League of California Cities Board of Directors meeting. b. MAYOR PRO TEM CHUCK FELLOWS: (1) South County Youth Coalition. Distributed a Big Brothers Big Sisters of San Luis Obispo County flyer entitled "Real Men Mentor" and reported that 30 boys are waiting to share their friendship with a Big Brother. For more information, visit www.slobigs.ora or call 781-3226. (2) County Water Resources Advisory Committee (WRAC). Distributed information for the Public Works Director about Smart Irrigation Controllers which are being utilized in Santa Barbara County; reported that there have been no confirmed positives on the Quagga mussels at any of the local lakes; and provided a copy of the draft Water Resources Chapter of the County's Conservation Open Space Element regarding groundwater monitoring and management. Minutes: City Council/Redevelopment Agency Meeting Page 13 Tuesday, November 25, 2008 b. MAYOR PRO TEM CHUCK FELLOWS (cont'd): (3) Other. None. c. COUNCIL MEMBER JOE COSTELLO: (1) Zone 3 Water Advisory Board. Reported that an issue will be coming forth to the Council concerning the raising of the spillway (bladder), of which the costs are proposed to be shared among the agencies; reported that it is expected to have a decision on the Habitat Conservation Plan by July 2009. (2) Air Pollution Control District (APCD). Fire Oversight Committee. Reported that more and more tasks are being mandated to be done locally by the APCD and staff continues to remain the same size. It is anticipated that within 3 years, the APCD would be running in the red. Discussion will be held to consider a per capita cost for all agencies to support APCD. (3) Fire Consolidation Oversight Committee. Met October 10t"; cooperative efforts continue to work well with Grover Beach and Oceano. (4) Other. None. d. COUNCIL MEMBER JIM GUTHRIE: (1) South County Area Transit (SCAT). Has not met since last report. (2) California Joint Powers Insurance Authority (CJPIA). No report. (3) Other. None. e. COUNCIL MEMBER ED ARNOLD: (1) Integrated Waste Management Authority Board (IWMA). Has not met since last report. (2) Economic Vitality Corporation (EVC). Has not met since last report. (3) Other. None. 13. CITY COUNCIL MEMBER ITEMS: a) Request to consider appointing a subcommittee to assist in coordination of the Recreation Center proposal. (Ferrara) Mayor Ferrara requested, and the Council concurred, to consider appointing a subcommittee to assist in coordination with the Five Cities Community Foundation concerning the proposed Recreation Center. Staff was directed to bring a staff report back to the next regular meeting for consideration. 14. CITY MANAGER ITEMS: a) Request to schedule a Special Council Meeting the week of December 15 -19, 2008 in order to consider award of bids for the E. Branch Streetscape project. City Manager Adams gave an update on the status of the E. Branch Streetscape project and requested the Council schedule a special meeting to consider award of bids for the E. Branch Streetscape project. Following brief discussion, staff was directed to schedule a special meeting on Thursday, December 18, 2008 at 4:00 p.m. 15. COUNCIL COMMUNICATIONS: None. Minutes: City Council/Redevelopment Agency Meeting Tuesday, 1`Jovember 25, 2008 16. STAFF COMMUNICATIONS: None. 17. COMMUNITY COMMENTS AND SUGGESTIONS: None. 18. ADJOURNMENT Mayor/Chair Ferrara adjourned the meeting at 10:55 p.m. Tony Ferr~II yor/Chair. ATTEST: Kelly Wet ore City Clerk/Agency Secretary (Approved at CC Mtg l-/3-aoo9 i Page 14