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Minutes 2009-05-26MINUTES REGULAR MEETING OF THE CITY COUNCIL TUESDAY, MAY 26, 2009 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. CALL TO ORDER Mayor Ferrara called the Regular City Council meeting to order at 7:01 p.m. 2. ROLL CALL City Council: Council Members Chuck Fellows, Jim Guthrie, Ed Arnold, Mayor Pro Tem Joe Costello, and Mayor Tony Ferrara were present. City Staff Present: City Manager Steve Adams, City Attorney Tim Carmel, Director of Administrative Services/City Clerk Kelly Wetmore, Director of Financial Services Angela Kraetsch, Acting Director of Community Development Teresa McClish, Chief of Police Steve Annibali, Associate Planner Jim Bergman, and Associate Planner Kelly Heffernon. 3. FLAG SALUTE Harvey White, representing the Exchange Club of the Central Coast, led the Flag Salute. 4. INVOCATION Pastor Robert Banker, Open Door Church, delivered the invocation. 5. SPECIAL PRESENTATIONS .Mayor Ferrara announced that at the last meeting, the month of May was declared as Bike Month and is being sponsored by the San Luis Obispo Council of Governments through its Rideshare Program. He noted that the Council is participating by riding their bicycles to the two Council meetings this month. Mayor Ferrara introduced Bob Lund, Chair of Arroyo Grande in Bloom and Executive Director of the Village Improvement Association, and announced that the City was competing again this year in the America In Bloom competition. Mr. Lund thanked staff for the Village improvement project; thanked staff again for assistance with the Annual Strawberry Festival which brought the highest attendance ever; and then introduced the two America In Bloom judges, Diana Weiner from Pennsylvania and Bill Hahn from Ohio. They spoke briefly about the program and stated that the awards would be announced at a symposium to be held in Hershey, Pennsylvania on October 1-2, 2009. 6. AGENDA REVIEW 6.a. Ordinances Read in Title Only. Mayor Pro Tem Costello moved, Council Member Guthrie 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. 7. CITIZENS' INPUT, COMMENTS. AND SUGGESTIONS Otis Page, Myrtle Street, acknowledged and praised Bob Lund for all his work in the community. He then referred to the City's finances, the status of the State budget, and potential impacts to the City. He suggested that staff submit a comprehensive budget document to the citizens which clearly details projected revenues and expenditures. Minutes: City Council Meeting Page 2 Tuesday, May 26, 2009 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. Otis Page, Myrtle Street, referred to Item 8.f. and stated he had voted no on the proposed San Luis Obispo County Mosquito, Vector and Disease Control Assessment. He stated the City does not have a mosquito problem and this is another bureaucratic attempt to add more taxes. No further public comments were received. Mayor Ferrara noted the supplemental information distributed to the Council for Items 8.i., 8.k., and 8.p. The Council acknowledged the information was received. Council Member Fellows requested that Items 8.j., 8.1. and 8.m. be pulled for questions only. 8 j. Consideration of a Resolution Accepting Improvements for Amended Conditional Use Permit 06-001-Five Cities Center. In response to a question by Council Member Fellows regarding the sign in the center island on Rancho Parkway that keeps falling over, Director Spagnolo responded that the sign is the City's responsibility and that staff has taken steps to ensure the stability of the sign. 8.1. Consideration to Approve Construction Plans and Specifications and Environmental Exemption for the 2009 Slurry Seal Project, PW 2009-04, In response to a question by Council Member Fellows regarding the condition of Pearvvood Avenue, Director Spagnolo responded that some areas, including Pearwood Avenue, may require microsurfacing in addition to slurry seal. 8.m. Consideration to Approve Construction Plans and Specifications for the Corporation Yard Exterior Structural Steel Repair Project. In response to a question by Council Member Fellows about the cost for the project and whether it would be done in-house or go out to bid, Director Spagnolo responded that the estimated project cost is $35,000 and the project would go out to bid. Mayor Ferrara requested that Item 8.f. be pulled for further discussion. Action: Council Member Guthrie moved, and Mayor Pro Tem Costello seconded the motion to approve Consent Agenda Items 8.a. through 8.p., with the exception of 8.f., with the recommended courses of action. City Attorney Carmel read the full title of the Ordinance in Item 8.d. The motion passed on the following roll-call vote: AYES: Guthrie, Costello, Fellows, Arnold, Ferrara NOES: None ABSENT: None 8.a. Cash Disbursement Ratification. Action: Ratified the listing of cash disbursements for the period May 1, 2009 through May 15, 2009. Minutes: City Council Meeting Tuesday, May 26, 2009 Page 3 8.b. Consideration of Statement of Investment Deposits. Action: Received and filed the report of current investment deposits as of April 30, 2009. 8.c. Consideration of Approval of Minutes. Action: Approved the minutes of the Special and Regular City Council Meetings of May 12, 2009, as submitted. 8.d. Consideration of Adoption of an Ordinance of the City Council of the City of Arroyo Grande Adding Chapter 13.27 to Title 13 (Public Works) Regarding City Easements. Action: Adopted Ordinance No. 610 as follows: "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ADDING CHAPTER 13.27 TO TITLE 13 (PUBLIC WORKS) REGARDING CITY EASEMENTS". 8.e Consideration to Approve Revised Water Wheeling Agreements with the Oceano Community Services District for Halcyon Estates and Grande Mobile Manor. Action: 1) Approved two (2) Water Wheeling Agreements with the Oceano Community Services District to wheel water for Charles F. Knollenberg and Marilyn L. Knollenberg, Trustees of the Knollenberg Family Trust UTD June 13, 2003, dba "Grande Mobile Manor" and Jerry L. Collins and Leanore L. Collins, husband and wife, dba "Halcyon Estates"; and 2) Authorized the Mayor to execute the agreements. 8.g. Consideration of a Resolution Adopting Various Updated Job Descriptions and Establishing Several Salary Ranges. Action: Adopted Resolution No. 4185 as follows: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ADOPTING VARIOUS UPDATED JOB DESCRIPTIONS AND ESTABLISHING SEVERAL SALARY RANGES". 8.h. Consideration of a Contract Extension with College Towing for Police Department Tow Services. Recommended Action: Approved an extension of the agreement with College Towing, Inc. on a month-to-month basis, effective as of March 27, 2009. 8.i. Consideration for Approval of a Second Amendment to the Agreement for Consultant Services. Action: Approved a Second Amendment to the Agreement for Consultant Services with BFGC Architecture not to exceed the amount of $22,700 and authorize the Mayor to execute the Agreement. 8.j. Consideration of a Resolution Accepting Improvements for Amended Conditional Use Permit 06-001 -Five Cities Center. Action: 1) Adopted Resolution No. 4186 as follows: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ACCEPTING IMPROVEMENTS FOR AMENDED CONDITIONAL USE PERMIT CASE NO. 06-001, LOCATED AT THE FIVE CITIES CENTER, CONSTRUCTED BY LEVON INVESTMENTS, LLC."; and 2) Released the letter of credit guaranteeing the improvements. 8.k. Consideration of Contract Amendment No. 4 with Wood Rodgers, Inc. for Preparation of Design Exception Fact Sheets for the Brisco Road-Halcyon Road/Route 101 Project Approval and Environmental Document (PA8~ED). Action: 1) Approved Contract Amendment No. 4 with Wood Rodgers, Inc. for preparation of the design exception fact sheets for the Brisco Road-Halcyon Road/Route 101 project approval and environmental document (PA&ED) in the amount of $17,500; 2) Authorized the City Manager to execute the amendment; 3) Allocated an additional appropriation of $17,500 from the Transportation Facility Impact Fund; and 4) Authorized the Mayor to send a letter to Caltrans regarding opposition to requests for further analysis and urging support for the City's preferred alternative. Minutes: City Council Meeting Tuesday, May 26, 2009 Page 4 8.1. Consideration to Approve Construction Plans and Specifications and Environmental Exemption for the 2009 Slurry Seal Project, PW 2009-04. Action: 1) Approved the construction plans and specifications for the 2009 Slurry Seal Project, PW 2009-04; 2) Found that the 2009 Slurry Seal Project is categorically exempt from CEQA pursuant to Section 15301(c); and 3) Directed the City Clerk to file a Notice of Exemption. 8.m. Consideration to Approve Construction Plans and Specifications for the Corporation Yard Exterior Structural Steel Repair Project. Action: 1) Approved the construction plans and specifications for the Corporation Yard Exterior Structural Steel Repair Project, PW-2009-05; 2) Found that the project is categorically exempt from CEQA pursuant to Section 15301; and 3) Directed the City Clerk to file a Notice of Exemption. 8.n. Consideration of an Award of Contract to MGE Underground, Inc. for the Fair Oaks Avenue Sewer Upgrade Project, PW 2009-02. Action: 1) Awarded a contract for the Fair Oaks Avenue Sewer Upgrade to MGE Underground, Inc. in the amount of $209,814; 2) Authorized the City Manager to approve change orders for 10% of the contract amount, $20,980, for unanticipated costs during the construction phase of the project. 8.0. Consideration of an Award of Contract to California Coastal Development Inc. for the Montego Street/Hillcrest Drive Sidewalk Improvements Project, PW 2008-07B. Action: 1) Awarded a contract for Montego Street/Hillcrest Drive Sidewalk Improvements Project, PW 2008-076 to California Coastal Development Inc. in the amount of $25,313; and 2) Authorized the City Manager to approve change orders for 10% of the contract amount, $2,600, for unanticipated costs during the construction phase of the project. 8.p. Consideration of an Award of Contract to D-Kal Engineering, Inc. for the City Parking Lot 8~ Bioswale Improvements and the Crown Hill Street and Corbett Canyon Road Sidewalk Improvements Project, PW 2008-07A. Action: 1) Awarded a contract for the City Parking Lot &Bioswale Improvements and the Crown Hill Street & Corbett Canyon Road Sidewalk Improvements, PW 2008-07A, to D-Kal Engineering, Inc. in the amount of $173,296.83; 2) Authorized the City Manager to approve change orders for 10% of the contract amount, $17,330.00, for unanticipated costs during the construction phase of the project. ITEMS PULLED FROM THE CONSENT AGENDA 8.f. Consideration of Ballot Votes for the Proposed San Luis Obispo County Mosquito, Vector and Disease Control Assessment. Recommended Action: Authorize the City Manager to approve submitting a "Yes" vote for approval of the proposed San Luis Obispo County assessment for mosquito, vector and disease control. Mayor Ferrara stated that in addition to Mr. Page's public comments, there has been some confusion about the amount of the assessment. He noted the issue was discussed at the recent Mayor's meeting. Following a brief explanation by City Manager Adams, Mayor Ferrara stated that a budget and work plan from the County is missing and how that reconciles with the proposed assessment. City Manager Adams stated he could bring more information back at the next Council meeting to address those issues. Council Member Fellows also requested that information be provided on the intended method to control mosquitoes. Minutes: Cify Council Meeting Page 5 Tuesday, May 26, 2009 Action: Mayor Ferrara moved to continue Item 8.f. to the June 9, 2009 City Council meeting. Council Member Fellows seconded the motion, and the motion passed on the following roll-call vote: AYES: Ferrara, Fellows, Guthrie, Arnold, Costello NOES: None ABSENT: None Mayor Ferrara requested, and the Council concurred, to move Item 11.a. up for consideration prior to the public hearing items since there were representatives from the County present for the item. 11. NEW BUSINESS ITEMS 11.a. Consideration of a Memorandum of Understanding By and Between the County of San Luis Obispo and the City of Arroyo Grande Regarding Acquisition of Property for the New Arroyo Grande Public Safety Facility and Removal of Deed Restriction on Recreation Site. City Manager Adams presented the staff report and recommended the Council approve the Memorandum of Understanding with the County to acquire property for a new Police Station and to sell property to generate funding for the Recreation Center project. Mayor Ferrara invited comments from those in the audience who wished to be heard on the matter. Murray Williams, Pecan Place, spoke in support of the proposal. Upon hearing no further public comments, Mayor Ferrara closed the public comment period. Council comments ensued in support of the proposed Memorandum of Understanding (MOU) with the County; that this is a "win-win" for the City and County and is a unique opportunity for the City to acquire the property; that it will resolve some existing resident issues concerning maintenance of the roadway; that the City will benefit by having the open space area; that once the acquisition is complete and a plan moves forward, having a new police facility will improve public safety efforts, as well as recruitment and retention of police personnel; that there will be no need for two moves of the police operations; that in these economic times, this seems the most reasonable way to accomplish the goal for an expanded public safety facility; and emphasis that the City would continue to seek grants and other financing to help construct the public safety facility project. Council Member Fellows commended City Manager Adams for his creativity in developing the concept and thanked the County for working with the City on this matter. Action: Council Member Arnold moved to approve a "Memorandum of Understanding By and Between the County of San Luis Obispo and the City of Arroyo Grande Regarding Acquisition of Property for the New Arroyo Grande Public Safety Facility and Removal of Deed Restriction on Recreation Site". Council Member Fellows seconded, and the motion passed on the following roll- call vote: AYES: Arnold, Fellows, Guthrie, Costello, Ferrara NOES: None ABSENT: None Minutes: City Council Meeting Tuesday, May 26, 2009 9. PUBLIC HEARINGS Page 6 9.a. Continued Public Hearing -Consideration of a Resolution Granting aOne-Year Time Extension and Amending Several Conditions of Approval for Vesting Tentative Tract Map No. 2653 for Property Located Between East Cherry Avenue and Myrtle Street, Applied for by Cliff Branch; and Consideration of a Reimbursement Agreement Between the City of Arroyo Grande and Cliff Branch for Sewer and Water Improvements on Property Located East of Noguera Place and North of East Cherry Avenue Extension; and Consideration of a Drainage Easement Agreement Between the City of Arroyo Grande and Cliff Branch (Cherry Creek Project). Associate Planner Heffernon presented the staff report and recommended the Council: 1) Adopt a Resolution granting cone-year time extension and amending conditions of approval for Vesting Tentative Tract Map No. 2653 for property located between East Cherry Avenue and Myrtle Street, applied for by Cliff Branch; 2) Approve and authorize the Mayor to execute a Reimbursement Agreement with Cliff Branch; 3) Approve and authorize the Mayor to execute a Drainage Easement Agreement with Cliff Branch; and 4) Approve paving of Myrtle Street by the City within six (6) months of completion of all improvements to Myrtle Street by the applicant. Staff then responded to questions from Council concerning the tract map; that the proposed irrigation well would not affect the existing Gentlemen's Agreement and would be used only for irrigation of common open space; clarification regarding fencing; clarification concerning the location of the Stilwell house in the D-2.4 Overlay and that demolition or relocation of a structure in the D-2.4 Overlay requires CEQA review; clarification regarding Molly McClanahan's letter relating to drainage; that the project is subject to the Design Guidelines in the East Village Neighborhood Plan; clarification of SB1185 concerning the time extension for the project; clarification of condition #28A regarding structures within creek setbacks and how it reconciles with mitigation measure 4.1; the width of the proposed sidewalk; clarification regarding the agricultural mitigation fee and concerns about its enforceability; clarification concerning creek protection policies and existing criteria which was established after project approval; clarification regarding the modification to condition #85 regarding undergrounding of overhead utilities and difficulties of removing the pole as it carries utilities across the creek; clarification concerning impacts to Subarea 2 by possibly requiring future installation of a sewer lift station to serve future development; additional concerns about the creek setback issue; and clarification regarding the required agricultural buffer. Mayor Ferrara opened the public hearing and invited the applicant to address the Council first. Cliff Branch, applicant, spoke in support of the proposed project revisions as a positive solution to several issues; commented on the sewer and water line modifications and stated it should serve the entire Neighborhood Plan area, however, a small lift station may be needed in the future; that the Subarea 1 neighborhood is thoughtfully designed and provides lower density; that he would be providing four units that are more affordable by design and paying an affordable housing in-lieu fee of $56,000; that the drainage improvements would not cost the City anything; that the project provides a regional drainage solution; that the project will create financial and economic activity for the City; that the project will provide repairs to existing infrastructure; and E. Cherry will be extended and paved at no cost to the residents. He referred to the Stilwell house which he claimed was previously deemed non-historic; he agreed to inclusion of a provision in the CC&Rs that would state "no sheds or structures" are allowed within the creek setback; did not believe lift stations are an issue; and noted that the regional drainage system must be maintained by the City. Minutes: City Council Meeting Page 7 Tuesday, May 26, 2009 There was brief review and questions of the revised tract map as it relates to Lots 27 & 28. Additional discussion ensued following a question by Council Member Fellows concerning drainage flow from homes along Noguera Place; the proposed width of E. Cherry Avenue; and the letter submitted by Scott Stokes from Above Grade Engineering recommending that the existing drainage and public utility easement at the rear of Tract 409 not be abandoned at this time. The following members of the public addressed the Council: Sara Dickens, co-trustee of the Dixson Trust, expressed concerns with the proposed modifications to the agricultural buffer which include a shorter fence and a 6-8 foot berm as it relates to effectiveness, longevity, and its ability to provide protection to residences from farm operations. She noted that the original proposed buffer was a wall to prevent noise, pesticide sprays and odors from reaching the homes. She stated that the proposed modified buffer would be an ineffective barrier. She also expressed concern about the mitigation for turning prime agricultural soils into a developed area and stated that just because the land is not zoned Agricultural, there is still a loss of prime soil which is a treasured resource. Marv Miller spoke in support of Mr. Branch's development proposal and proposed revisions to the project, and stated that the project would be an asset to Arroyo Grande which would bring in revenue. Buddy Jaquith, Myrtle Street, stated he was a friend and neighbor to the Stilwell's and the Vanderveer's and has watched the evolution of the area. He referred to the Vanderveer house and believed it to be historical. He referred to the Stilwell house and believed it has no historical or social value to this community. He spoke in support of Mr. Branch's development proposal and the demolition or removal of the Stilwell house. Elizabeth Scott Graham spoke in opposition to the construction of an 8 foot concrete wall as a buffer and supported the revised proposal to construct a landscaped berm as an agricultural buffer. Norma Jean Urendes noted that the subject property has never been used for agricultural purposes and spoke in support of the proposed project and improvements. Liz Summer, small business owner in San Luis Obispo County, spoke about small businesses in this community and the need to provide nearby housing to support those businesses. She spoke in favor of the proposed development. She noted that in light of the economy, all levels of government need to be flexible in order to stimulate the economy and activity that will create jobs and help local residents keep their jobs. Gary Scherguiest, Historic Resources Committee (HRC) member, supported a review of the Stilwell house by the Historical Resources Committee. He stated that when he was on the Architectural Review Committee, the Stilwell house was included in the project, and he was surprised when it was eliminated. Larry Turner, Noguera Place, spoke from a letter he submitted (on file in the City Clerk's office) which addressed the history of existing utility and drainage easement in Tract 409 and what the City has done over the past years related to drainage in the area; and that the City needs to abandon the Noguera easement as a condition of approval for this project. Duane Davis, South County farmer, spoke in support of the proposed project and noted that the regional drainage problem would be solved. Don Piper, Arroyo Grande resident, spoke in support of the revisions, especially the change to the buffer wall and berm. Joe Hull, Arroyo Grande resident, spoke in support of the proposed project. Otis Page, Myrtle Street, commented on the evolution of this project and acknowledged that the project has been approved. He stated that the project revision is an abrogation of the commitments made to the neighborhood plan, which was to ensure that the infrastructure was there to support the neighborhood plan. He commented that if there is a change to the sewer, there is major change Minutes: City Council Meeting Page 8 Tuesday, May 26, 2009 in the commitment. He acknowledged economic issues; however, he stated the proposed changes will result in a major impact to the residents on Myrtle Street, and he asked the Council to make repaving of Myrtle Street a top priority. He also referred to the well and the drainage easement and that the easement will become City property, and insisted that the City relinquish the Noguera easement. Jim Dickens, Branch Mill Road, acknowledged that the approved Vesting Tentative Tract Map and proposed extension is not the issue. He stated that at issue are some of the amendments to the project brought forth by the applicant. He expressed concern that the proposed changes are due to the economy, which implies that the applicant needs the City's help to make his project viable and profitable. He acknowledged that these are hard economic times for everyone and when the City is being asked to waive mitigation fees or is transferring sales tax funds to improved drainage, the taxpayers are the ones who are paying for the applicant's project. He also expressed concern about the removal of the 8-foot wall as an agricultural buffer and that the buffer should be twice the size than what is approved; and referred to prime soils and stated he did not agree with the original mitigation measure for the loss of prime soils. He stated that it is not a zoning issue; it is a natural resource of which nine acres would be lost. He referred to the General Plan goals, objectives, and policies to mitigate and protect agricultural land and suggested strengthening those goals. Mayor Ferrara called for a break at 9:30 p.m. The Council reconvened at 9:40 p.m. and continued the public hearing Randy Ouimette, Noguera Place, commented on the utility and drainage easement behind the Noguera tract, stated the easement cannot handle flood waters, and expressed concern that the proposed revisions will continue to impact the residents of Noguera Place. He supported the City's abandonment of the easement and that it not be used for drainage purposes. Shirley Gibson, HRC member, requested that the HRC have an opportunity to review the historical status of the Stilwell house. Bill Hart, HRC member, clarified the nomination process for listing of the Vanderveer house on the State's Historic Register. He also requested that the HRC be given the opportunity to review the Stilwell house for historical significance. Colleen Martin, Olive Street, referred to the 2000 General Plan Update and the vision for the area that includes the Cherry Creek project and the Phase 2 properties. She stated it was hard to compare the revisions with the originally approved project, specifically with regard to the maintenance of the bioswale; that there was no mention on whether lots would be sold individually or all at once, which affects the length of construction; that there is no longer a meandering path on E. Cherry; that the Noguera easement should be released back to the homeowners; that there is a drainage canal on the Stilwell property that could be utilized as a temporary solution; that there should be measurable guidelines regarding development of the project; acknowledged that the 25 foot creek setback is still included in mitigation measure 4.1; favored mitigation measure 6.3 which states that only clear land will be actively under construction within 6 to 12 months; expressed concern that there is no mention of the use of E. Cherry prior to its improvement; supported added language that no structures are allowed in the creek setback; and expressed concern about the maintenance of the bioswale which should be maintained regularly. Tony Janowicz, Lierly Lane (subarea 2), urged the Council to approve the proposal so that the project can be developed. Nora Looney, Lierly Lane, spoke on behalf of the neighbors; stated that they had worked with Mr. Branch on the terms of the reimbursement agreement; urged the Council to move forward with the proposed revisions; had no opposition to the removal of the Stilwell house; noted that the project resolves the drainage problem; and that the project is good for the City and the economy. Minutes: City Council Meeting Page 9 Tuesday, May 26, 2009 Cliff Branch responded to and clarified issues related to public comment, including that to his knowledge, the City does not have any easements across E. Cherry or the Stilwell property; that everything in the proposal is consistent with the General Plan; that he took offense to the bailout comment and clarified the net effect of the requested concessions; that he is putting in a regional drainage solution; that this is a better project; that there would be a four foot fence on both sides of the road; that there are more restrictions on lots 27 and 28 than there are in the original project; that he agreed with the condition that no structures are to be allowed in the setback; noted that there is no known historic significance related to the Stilwell house; that all original conditions of approval are in place; that his intent is to move forward with custom homes and that he prefers to employ local builders; and that with regard to the irrigation well, the homeowners could not afford to use drinking water to irrigate the open space landscaping nor does it make sense environmentally. Hearing no further comments, Mayor Ferrara closed the public hearing. Council Member Guthrie provided the following comments: - Asked for clarification on agriculture mitigation requirements and the modified agricultural buffer as it relates to noise mitigation data; - Recalled upgrading the zoning in this area to be able to achieve a drainage solution; that it was a good location for additional density near the Village; - Reminded that this project will not solve the entire flooding risk, and that something will need to be done in Phase 2 as well; - Supported some adjustments to the project in order to achieve some drainage improvements; - Commented on affordable housing; that while the City has been successful with inclusionary housing requirements, the housing market has changed and he supported the in-lieu fee; - Commented on intent of the agricultural mitigation fee and that the property has to be zoned as agriculture and since this property was never zoned agriculture, there should not have been any mitigation; however, he understood the goal of retaining prime soils; supported eliminating the mitigation fee; - Stated he was okay with the relocation of the parkways and the City's maintenance of the bioswale; - Supported language that precludes the placement of structures within the creek setback; - Did not consider the Stilwell house as historical based on the information given at the time and he was not sure the matter needed to be revisited; however, he understood that there may be a CEQA requirement that would require further evaluation. City Attorney Carmel clarified that CEQA review is triggered by an application for demolition or relocation of a structure because of the Overlay zone, which has not yet occurred. - Supported moving forward with the revisions as proposed, and clarifications regarding no structures in the creek setback area. Council Member Arnold provided the following comments: - Supported the project as recommended; supported tightening up the language regarding structures not allowed in the creek setback; - Noted that drainage is the real issue and that a lot of time has been spent looking at the drainage; did not want to lose this opportunity for a solution; - Noted that the neighbors support the project; - Believed that the changes are relatively minor; - Believed that the proposed berm will be an asset; - With regard to affordable housing, many units have been built in the City and unfortunately due to the deed requirements, they are difficult to maintain; supports that four units in the development will be more affordable plus the City would collect an in-lieu fee; Minutes: City Council Meeting Page 10 Tuesday, May 26, 2009 - Supported the relocation of the parkways; - Supported City maintenance of the bioswale; - Noted the substantial upgrade to the sewer line which will benefit the existing neighborhood; - Commented that the agricultural mitigation fee was a compromise based on discussion and concerns expressed at the time of the original approval; supported eliminating the mitigation fee; - Does not believe the Stilwell house is historical; noted the applicant offered funds to relocate the structure; believed the drainage solution is more important than saving the house; - Supported the project as proposed with additional language concerning no structures in the creek setback. Council Member Fellows provided the following comments: - Referred to several letters submitted by the public regarding the project and commented on issues related to changes in the project; - Did not believe the project would solve the Newsom Springs flooding; however, the regional drainage problem would be partially solved by the drainage swale and related improvements; - Disagreed that the project is not significantly different; - Spoke about protection of farmland and the farmers; noted that past surveys indicate that agriculture preservation is the number one community value; - Noted the project site is made up of nine acres of prime soil, eight acres of which are not covered by structures; acknowledged it is not zoned agriculture; expressed concern that only one acre of land was mitigated and that originally, the mitigation fee should have been large enough to protect the eight acres; acknowledged the City Attorney's comments regarding wording in the General Plan and Municipal Code concerning mitigation of prime soils on agriculturally zoned land; suggested reviewing and changing the General Plan and Municipal Code if farmland is to be protected in the future; stated he did not believe there was a choice but to give up the $56,000 mitigation fee; - Did not believe the present agricultural buffer design, when compared to those in other agricultural areas, is adequate to protect future residents from the effects of farming on the Dixson Ranch; believed a minimum of 131 feet of fully landscaped buffer is an accepted standard and should be required; - Referred to mitigation measure 2.1 regarding the Right-to-Farm Ordinance and stated it should be a deed restriction so that it shows up on a preliminary title report; - Referred to mitigation measure 2.2 and suggested that the lots nearest the buffer not be improved or occupied until the landscaping becomes functional in filtering out pollutants; and the measure should be expanded to require ongoing maintenance and monitoring; - Noted that parkways are an amenity in the Village because they separate hardscape from hardscape and trees can be planted; hopeful that loss of parkways could be negotiated with Mr. Branch; - Supported the eventual abandonment of the Noguera easement; - Supports additional language to prohibit structures within the creek setback; - Noted that the Stilwell house would still require review by the HRC if the structure were to be demolished or relocated; - Spoke about the development review process and noted the Stilwell house is within the Historic Overlay District D.24; - Could not support the project as proposed primarily because of the Stilwell house. Mayor Pro Tem Costello provided the following comments: - Noted that the main issues are the one-year time extension and amending several conditions of approval for a Vesting Tentative Tract Map that has already been approved; consideration of a reimbursement agreement between the City and the developer for the sewer and water Minutes: City Council Meeting Page 11 Tuesday, May 26, 2009 improvements; and consideration of a drainage easement agreement between the City and the applicant; - Acknowledged issues relating to the Stilwell house; noted the developer is willing to provide funds to relocate the house; and if the house were deemed to be historic, it was unlikely to stay where it is currently located; would support its relocation and preservation on another site; - Commented on the large scale improvements to the regional drainage that would be paid for by someone else and would benefit the City; - Noted that with regard to prime soils, the concept under the General Plan is to mitigate for land zoned agricultural, which does not apply to this project; acknowledged that this may be an issue that needs to be revisited in the future; - Supported the changes to the agricultural buffer; noted that it was important for future buyers to be aware that there is a farm that exists next to the development which will continue to operate; - Noted that Myrtle Street will be repaved; - Believed that the easement on Noguera should eventually be abandoned; - Supported the City's ownership and maintenance of the bioswale; referred to condition #20 and suggested additional language be added which includes use of the irrigation well to irrigate the drainage easement lot containing the bioswale; - Supported additional language in condition #28A to prohibit structures of any kind within the creek setback, with the exception of Lots 27 & 28. Brief discussion ensued concerning condition of approval #28A and mitigation measure 4.1 which is the creek setback requirement. City Attorney Carmel suggested modification of the language as follows: "No structures of any kind shall be allowed in the 25' setback area. There shall be no public use of the 25' creek setback area on lots #27 and #28." He stated that makes it compatible with mitigation measure 4.1 which requires an open space easement and no development within the creek setback area. He also noted modified language in mitigation measure 4.1 that provides an exception for lots 27 and 28. Mayor Pro Tem Costello stated he could support the consideration of the Resolution granting the one-year time extension and to amend the conditions of approval as discussed with the recommended changes. Mayor Ferrara provided the following comments: - In response to questions, staff provided clarification on the process and timing required for the relinquishment of the Noguera easement as it relates to the proposed drainage improvements and associated liability; and the applicant clarified that the lots will be graded and finished with retaining walls prior to development of the custom lots; - Supported the modified language regarding the creek setback as proposed; - Suggested that a picture and several examples be provided in the CC&Rs of how to plant in the 25' creek setback area; Acting Community Development Director McClish noted that staff is working with Central Coast Salmon Enhancement to draft appropriate creek care guidelines for property owners along the creek which will also be incorporated into the CC&Rs; - With regard to the agricultural buffer, he preferred a softer landscaped approach and would like to see a more abrupt face on the berm that faces the farmland, with landscape on top of it and sloping down the back side; agrees with concept of a berm versus a wall, but would like to see the berm reconfigured; - Noted that the affordable housing issue has become a gray area; the affordable category is being reviewed in terms of its viability in this market; noted that affordable housing restrictions are cumbersome and affordable units are being converted back to market rate; supported the proposed modifications to the affordable housing conditions; Minutes: City Council Meeting Tuesday, May 26, 2009 Page 12 With regard to prime soils, he noted that agriculture protection policies are in place and expressed concern about the information put forth by the City Attorney regarding the mitigation fee; agreed that the existing policy language needs to be reviewed and revisited; Recalled that the Stilwell house was left on the original tract map because the previous owner wanted to see whether or not there was a feasible way the house could remain and be restored; commented that the HRC may have a role in this issue, although it is narrow, and did not have any issue with the HRC reviewing it only from the standpoint of trying to find a place to relocate it; does not see going back to review its historical value; it's clear that it will not remain in its current condition at this location as no one is stepping forward to restore it; With the modification of language concerning the creek setback and a reconfiguration of the buffer design, he can move forward with the project as proposed. In response to a question by Council Member Fellows, the applicant provided explanation regarding the drainage plan and associated retaining walls, as it relates to the Noguera easement. Council Member Fellows indicated it was important to not go forward with this project until the City has a solution to this problem. Additional discussion ensued with the applicant providing clarification regarding the design of the drainage system. Action: Council Member Arnold moved to adopt a Resolution as follows: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE GRANTING HONE-YEAR TIME EXTENSION AND AMENDING VESTING TENTATIVE TRACT MAP NO. 2653 FOR PROPERTY LOCATED BETWEEN EAST CHERRY AVENUE AND MYRTLE STREET, APPLIED FOR BY CLIFF BRANCH" with modifications suggested by the City Attorney to mitigation measures 2.2 and 4.1, condition of approval #28A, conditions of approval #19 and #20, and that the landscape buffer be modified slightly to increase the grade on the street side; and to approve paving of Myrtle Street by the City within six (6) months of completion of all improvements to Myrtle Street by the applicant. City Attorney Carmel read the modifications as follows: 19. The applicant agrees to offer to donate the Stilwell house at no cost for up to six months after approval of the amended tract map to a person or organization willing and able to relocate and preserve it. The project shall be referred to the Historic Resource Committee (HRC) to assist in relocation and preservation efforts. 20. The applicant shall be allowed to drill and install an on-site irrigation well for the sole purpose of irrigating the landscape materials located within the open space parcels maintained by a homeowners association (HOA), the drainage easement lot containing the bioswale, and for construction related purposes to the satisfaction to the City. 28.A. No structure of any kind shall be allowed within the 25' creek setback area. There shall be no public use of the 25' creek setback area on lots #27 and #28. Mitigation Measure 2.2: The final landscape plan for the agricultural buffer shall be prepared by a landscape professional having experience with designing agricultural buffers and shall be subject to the approval of the Community Development Director. (The remainder of MM 2.2 remains unchanged). Mitigation Measure 4.1: With the exception of Lots 27 & 28, the Final Tract Map shall show an irrevocable offer to dedicate to the City the creek channel, the twenty-five (25') creek setback area measure from top of bank, and any environmentally sensitive areas, as determined by a qualified biologist, along the Phase 1 property boundary. An open space easement shall also be recorded stipulating that no development shall occur within 25' creek setback area. Minutes: City Council Meeting Page 13 Tuesday, May 26, 2009 Mayor Pro Tem Costello seconded, and the motion passed on the following roll-call vote: AYES: Arnold, Costello, Guthrie, Ferrara NOES: Fellows ABSENT: None Action: Council Member Arnold moved to approve and authorize the Mayor to execute a Reimbursement Agreement with Cliff Branch, and to approve and authorize the Mayor to execute a Drainage Easement Agreement with Cliff Branch. Mayor Pro Tem Costello seconded, and the motion passed on the following roll-call vote: AYES: Arnold, Costello, Guthrie, Fellows, Ferrara NOES: None ABSENT: None 9.b. Consideration of Historic Resource Designation 08-002(c): 200 East Branch Street (Building and Life Safety Division). Associate Planner Bergman presented the staff report and recommended the Council consider the recommendations from the applicable advisory bodies regarding the designation of 200 East Branch Street as a local historical resource, take tentative action, and direct staff to return with an appropriate Resolution. City Manager Adams presented the proposed alternatives for the Council's consideration. Mayor Ferrara opened the public hearing and invited the consultant to address the Council first. Cynthia Thompson, consultant representing Historic Resource Group, provided an overview of the Historic Assessment Report and related findings, discussed the City's eight established criteria for designating local historic resources, and discussed the National and State criteria. She explained that her scope of work was to evaluate all three buildings located at 200, 208, and 214 E. Branch Street; that there were no specific building records for the structure at 200 E. Branch Street; and reviewed the building history and context for the structure located at 200 E. Branch. She acknowledged that review by the City's advisory boards was correct and appropriate as it relates to review of the building in a larger context of the development of the City as a whole. She discussed site specific evaluations versus district contributors. She explained that even though the City appears to have a district, until a comprehensive context statement and proper procedures are written that establishes "periods of significance", individual buildings cannot be evaluated under criteria for district contributors at this time; therefore the building does not appear to meet the City's local criteria for historic designation. Further discussion ensued regarding the historic district assessment and designation process. Ms. Thompson explained that a much larger context statement would need to be developed, periods of significant development and growth in Arroyo Grande would have to be established, and then district contributors and non-contributors could be conclusively identified. Pursuant to Council policy that requires a unanimous vote to continue the meeting past midnight, Council Member Guthrie moved to proceed with the meeting, Council Member Arnold seconded, and the motion failed on the following roll-call vote: Minutes; City Council Meeting Tuesday, May 26, 2009 AYES: Guthrie, Arnold, Fellows NOES: Ferrara, Costello ABSENT: None Page 14 Action: Mayor Ferrara moved to continue the public hearing item to the June 9, 2009 City Council meeting. Mayor Pro Tem Costello seconded, and the motion failed on the following roll-call vote: AYES: Ferrara, Costello NOES: Guthrie, Arnold, Fellows ABSENT: None Action: Council Member Guthrie moved to continue the public hearing item to the 2"~ meeting in July. Council Member Arnold seconded the motion. Counci! discussion ensued regarding scheduling, availability, and future agenda items as it relates to upcoming Council meetings. Council Member Guthrie withdrew his motion. Action: Mayor Ferrara moved to continue the public hearing item to the June 9, 2009 City Council meeting. Mayor Pro Tem Costello seconded, and the motion passed on the following roll-call vote: AYES: Ferrara, Costello, Guthrie, Fellows NOES: Amold ABSENT• None ADJOURNMENT Mayor Ferrara adjourned the meeting at 12:06 p.m. ~~ Tony Ferra ayor ATTEST: Kelly We or ,City Clerk (Approved at CC Mtg '~ 3 v~o~ )