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Minutes 2010-11-09 MINUTES REGULAR MEETING OF THE CITY COUNCIL TUESDAY, NOVEMBER 9, 2010 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. CALL TO ORDER Mayor Ferrara called the Regular City Council meeting to order at 7:00 p.m. 2. ROLL CALL City Council: Council Member Joe Costello, Council Member Chuck Fellows, Council Member Caren Ray, Mayor Pro Tem Jim Guthrie, and Mayor Tony Ferrara were present. City Staff Present: City Manager Steven Adams, City Attomey Tim Carmel, Director of Legislative and Information Services /City Clerk Kelly Wetmore, Fire Chief Michael Hubert, Battalion Chief Riki Heath, Community Development Director Teresa McClish. 3. FLAG SALUTE George Smith, representing Knights of Columbus, led the Flag Salute. 4. INVOCATION Pastor Robert Banker, Open Door Church, delivered the invocation. 5. SPECIAL PRESENTATIONS None. 6. AGENDA REVIEW 6.a. Ordinances Read in Title Only. Council Member Costello moved, Council Member Ray 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. 7. CITIZENS' INPUT. COMMENTS. AND SUGGESTIONS Tim Moore, Fair Oaks Avenue, referred to the Short Street, Centennial Park, City Hall, and Le Point Street Parking Lot projects and requested a full accounting of all the costs associated with the projects; referred to the pre - demolition meeting of the malt shop building and said he was told there was no signed lease for the new building, therefore, there is no need for outdoor seating and no need for modifications to Short Street. He further stated the Council is violating Roberts Rules of Order because the Mayor should not be a voting member of the Council unless there is a tie. He concluded by stating there were only two people that he respects and trusts and he hopes the rest of the Council and City staff live up and gain his respect as well as the citizens of the City and do what is best for the City. Patty Welsh, Pradera Court, also expressed concern about each Council Member's responsibility when deciding how to vote on an issue and should not defer voting on an issue until hearing from other Council members. She also referred to Roberts Rules of Order and expressed concern the Council was not following correct parliamentary procedure. Minutes: City Council Meeting Page 2 Tuesday, November 9, 2010 In response to a request for a brief clarification by Mayor Ferrara, City Attorney Carmel explained that the Council uses Sturgis' Rules of Parliamentary Procedure, not Robert's Rules of Order. He further explained that the framework by which the Mayor operates is established by State law under the Govemment Code and the Mayor is one of five members of the Council with the same duties and responsibilities, including the right to vote. 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 Member Fellows moved, and Council Member Ray seconded the motion to approve Consent Agenda Items 8.a. through 8.h., with the recommended courses of action. City Attorney Carmel read the full title of the Ordinance in Item 8.g. The motion passed on the following roll -call vote: AYES: Fellows, Ray, Costello, Guthrie, Ferrara NOES: None ABSENT: None 9. PUBLIC HEARINGS Mayor Ferrara declared a conflict of interest on all public hearing items due to ownership of real property within 500 feet of the proposed projects. He stepped down from the dais and left the meeting. Mayor Pro Tem Guthrie took over the meeting as the Presiding Officer. 9.a. Consideration of Specific Plan Amendment 10 -001; Location: Southwest Corner of East Grand Avenue and South Court land Street; Applicant: NKT Commercial. Community Development Director McClish presented the staff report and stated the Planning Commission recommended the Council adopt a Resolution denying Specific Plan Amendment 10 -001 regarding Subareas 3 and 4 of the Berry Gardens Specific Plan. She then responded briefly to questions from Council regarding the results and time of the traffic study for the proposals. Mayor Pro Tem Guthrie opened the public hearing and invited the applicant and the applicant's representatives to address the Council first. Carol Florence, representing applicant NKT Commercial, requested the Council consider approval of Alternative #2 by taking tentative action to adopt the Mitigated Negative Declaration and approve Specific Plan Amendment 10 -010 as proposed. She then gave a PowerPoint presentation of the proposed Specific Plan Amendment which included renderings of the proposed development and vicinity map; the proposed development versus the originally proposed Berry Gardens Specific Plan development; and an overview of the development standard amendments requested to the Berry Gardens Specific plan. Minutes: City Council Meeting Page 3 Tuesday, November 9, 2010 Nick Tompkins, applicant, provided background history as it related to his negotiations for acquiring the property beginning in 2006 and his purchase and acquisition of the property in 2007; his discussions with the City for retail development in this area; and provided an overview of several projects proposed over the years that did not proceed. Carol Florence continued her presentation of the proposed development including setback revisions and relocation of Buildings A & B; illustrated examples of streetscape layouts and pedestrian oriented amenities; showed renderings of the project from various viewpoints, elevation, and angles; demonstrated ADA access areas, patio views, a proposed planter in the public right of way; views of the southwest truck dock for the largest building and all building elevations; displayed the proposed emergency access that could serve as a pedestrian walkway; demonstrated the line of site from neighboring residential areas; and displayed the proposed Peoples' Self Help Housing Site Plan. Robyn Letters, representing the applicant as a research consultant from Opinion Studies, gave an overview of her credentials for conducting public opinion surveys; gave a presentation on the methodology and results of a telephone survey regarding current shopping habits of residents in Arroyo Grande and surrounding areas, attitudes regarding the proposed Food 4 Less Court land Place Project, and the project's impact on future shopping. Carol Florence clarified that this was a shopping survey only. She again requested the Council take action on Alternative #2. In response to a request by Council Member Ray, Steve Orosz, traffic consultant from Orosz Engineering Group, explained the results of the traffic study he conducted and responded to questions concerning current average daily trip generation versus the proposed average daily trip generation if the project is constructed as proposed. He also responded to questions relating to the bus stop as proposed. Further Council questions ensued of the applicant regarding clarification on setbacks, whether there would be a shopping cart corral in the parking lot; clarification regarding Mitigation Measure III -2 which requires inclusion of a bus turnout; clarification regarding the height of the tallest tower proposed; the square footage of the San Luis Obispo Food 4 Less store; and whether the proposed screening between the two land uses was reviewed by the Fire Authority. Nick Tompkins concluded the applicant's presentation by stating there has been a lot of speculation about the proposed project; gave background information of the Food 4 Less business and noted the public's high perception of this store and that he did not believe this to be a big box store, and spoke further in support of approval of the project as proposed. Scott Smith, representing Peoples' Self Help Housing Corporation (PSHH), provided a background of the Corporation and spoke about the need for affordable family housing in the City; gave background information on the sale and acquisition of properties in the City; provided an overview of the proposed project (Item 9.c.); and noted that timing for approval of this project is critical due to PSHH's application for competitive grant funding. Minutes: City Council Meeting Page 4 Tuesday, November 9, 2010 Bruce Frasier, architect for PSHH, provided an overview of the project and addressed issues relating to setbacks, the emergency access road, landscape screening between the projects, fencing, and common open space and playground areas. Scott Smith responded to additional questions regarding maintenance of the setback area between the commercial and residential, use of a community room (which he said is required to be included in this type of project), and clarification of the previously owned PSHH property and subsequent site trade with VCA Animal Hospital. Fire Chief Hubert, Five Cities Fire Authority, stated he had reviewed and approved the plan revisions made to both projects. Mayor Pro Tem Guthrie called for a break at 9:25 p.m. The Council reconvened at 9:40 p.m. Mayor Pro Tem Guthrie said the public hearing was open and invited members of the public to address the Council. Russell Read, General Counsel for Cookie Crock, noted he had submitted letters in opposition to the project for the record. Denise Andreini, LaVida Lane, spoke in support of the Food 4 Less project. Phyllis Tonne spoke in opposition to the Food 4 Less project. Bill Corley, Paso Robles, spoke in support of the Food 4 Less project. Teresa Schultz, Emerald Bay Drive, spoke in opposition to the Food 4 Less project. Benedene Duffin, Newport Avenue, spoke in opposition to the Food 4 Less project. Richard Duffin, Newport Avenue, spoke in opposition to the Food 4 Less project. Del Clegg, owner of Cookie Crock Warehouse, spoke in opposition to the Food 4 Less project. Bill Vance, Santa Maria, spoke in opposition to the Food 4 Less project. Jerry McLaughlin spoke in opposition to the Food 4 Less project. Frank Madden, Rodeo Drive, spoke in opposition to the Food 4 Less project. Mike Miller, Manager of Arroyo Grande Albertson's, expressed concerns regarding the project and believed it would not result in an increase in sales tax revenue or an increase in jobs. Kent Horeisi spoke in opposition to the Food 4 Less project. Beth Stepnitz, Bakeman Lane, spoke in opposition to the projects. Aaron Henkel, Aspen, expressed concerns about the ability for truck turning radius on Courtland and commented on the traffic studies. Peter Jankav, representing Farmers' Market Association, spoke in opposition to the Food 4 Less project. Mike Zimmerman, Arroyo Grande, spoke in opposition to the project. Crystal! Morgan, Chilton, spoke in opposition to the Food 4 Less project. Anna Scott, read a letter in support of the Food 4 Less project on behalf of Rick Castro, President of Arroyo Grande Community Hospital. Heather Hellman, San Luis Obispo, spoke in support of the Food 4 Less project. Minutes: City Council Meeting Page 5 Tuesday, November 9, 2010 John Spencer, Spencer's Market, spoke in opposition of the Food 4 Less project and submitted a petition containing approximately 237 pages signed by over 3,000 individuals who oppose the project. Pam Hyde, Stagecoach Road, spoke in opposition to the Food 4 Less project. Wendy Beckham, Hillcrest Drive, spoke in opposition to the Food 4 Less project. John Mack, Loganberry, spoke in opposition to the projects. Ann Steele, El Camino Real, spoke in opposition to the Food 4 Less project. Marty Scala, Grover Beach, spoke in opposition to the Food 4 Less project. Patty Welsh, Pradera Court, spoke in opposition to the proposed design of the project. Toni Geishlin, Nipomo, read a letter in support of the project on behalf of a resident who could not attend. Maggie Summers, Newport Avenue, spoke in opposition to the Food 4 Less project. Patrick Dempsey spoke in opposition to the Food 4 Less project. Mike Fuller spoke in opposition to the Food 4 Less project. Carol Florence responded to issues regarding the proposed buffer, which she clarified would be an exclusive use easement; and clarified issues regarding truck circulation where Courtland Street would be modified. Steve Orosz noted that the traffic study was updated in October 2009 based on the revised project. Hearing no further public comments, Mayor Pro Tem Guthrie closed the public hearing. Council Member Costello provided the following comments: - Clarified the Council had to first consider the proposed Specific Plan Amendment; - Referred to the Planning Commission's denial and findings and stated he agreed with the Planning Commission for the most part; - With regard to size and scale, he believed the proposed building was too large; - Agreed that affordable housing is a priority for this location; - Must balance the commercial use with the residential use; - Acknowledged the compromise on the setback; would like a minimum of 15' setback on commercial side and minimum 10' setback on residential side; - Acknowledged there was a lot of discussion about competition; however, the issue of a grocery store is irrelevant because it is an allowed use in this zoning district; - Stated that the issue is the size and scale of the proposed building for the commercial site; - Referred to a comparison of existing buildings in the area; - Would like to see a smaller footprint for the anchor building; - Noted that the East Grand Avenue Enhancement Plan was not formally adopted and is used as a guide; must rely on the General Plan and the Berry Gardens Specific Plan; - Acknowledged the project has been revised to meet the California Fire Code; - Acknowledged the applicant has included significant pedestrian oriented, streetscape and landscaping amenities; - Cannot support the Specific Plan Amendment as proposed and would .like to see it revised and referred back to the Planning Commission; would like to see a change in the setbacks and reduce the size of the building; Minutes: City Council Meeting Page 6 Tuesday, November 9, 2010 - Expressed disappointment that the bus stop has been removed; and is not satisfied with the traffic study and would like to see more information with better calculations. Council Member Fellows provided the following comments: - Thanked everyone for their presentations and input, including the ARC and Planning Commission, and members of the public and other professionals who submitted written comments; - Commented that he read all the materials thoroughly, including the Mitigated Negative Declaration which he did not entirely agree with; - Referred to the back of the Vons which is located against residential development and found a 40 -50 foot setback between the commercial and residential uses; - Stated he had reviewed other Arroyo Grande commercial buildings in the area to gauge building sizes; - Acknowledged that competition is good; however, it was a matter of what development is appropriate at this site; - Stated the proposed Specific Plan Amendment is unacceptable and is not right for this part of the City; - Stated that with the project as proposed, he could not make findings as spelled out in General Plan policies LU5 -2, LU11 -1.2, and LU 11 -2.2; stated it would create an illogical land use; the amendment is inconsistent with the General Plan policies; - Stated that a 24 -hour store is not good for that location; - Stated that a 10 foot buffer is not acceptable. - Stated a better plan would be something similar to the adjacent development where CVS is located; - Believed that the effects of the proposed project would contribute to nearly constant activity with noise, air pollution, traffic congestion, as well nighttime glare. Council Member Ray provided the following comments: - Clarified the intent of the Brown Act as it relates to transparent deliberations among the Council; - Thanked members of the public for their comments and civility; - Noted that businesses move locations and /or uses of buildings change over time; - Acknowledged traffic issues expressed during the public hearing; - Stated that the Council must balance many things, including Mr. Tompkin's right to develop his property within the scope of the regulations, versus the survival of other businesses; the economic viability of the City with the rural, small town character; the role of government in the regulation or non - regulation of capitalism; and smart growth versus promoting potential blight in the City; - Stated that this is not a Spencer's Market versus Food 4 Less issue; should be encouraging competition as it benefits everyone economically; - Stated Council must be careful not to try and regulate competition; - Stated she has no problem with Food 4 Less itself; however, her issue is that whatever is built here will remain in perpetuity and the more square footage there is, the more potential there is for tumover of businesses; - Agreed there should be a 15' setback on the commercial side and 10' on the residential side and emphasized the need for safety in the corridor in between; - Believed that the parking is inadequate at 175 spaces; Minutes: City Council Meeting Page 7 Tuesday, November 9, 2010 - Stated that the proposed 50,000 square foot building is too big and the project is under parked; could not support the proposed 300:1 ratio; - Stated that the Specific Plan needs additional modifications, specifically with regard to the parking and setbacks, mass and scale, and minimum building size; - Encourages development in this gateway, even with a grocery store; however, not at the proposed mass and scale. Mayor Pro Tem Guthrie provided the following comments: - Stated that Grand Avenue is the only area in Arroyo Grande that can support this type of use with large buildings and this is the last opportunity to have a large footprint with a moderate sized supermarket; - Noted that this is the commercial center of our small town; - Believed commercial uses should be close to residential uses; - Referred to the Mitigated Negative Declaration related to traffic; reviewed the report and accepts the traffic analysis; - Stated that there is nothing about this development that affects the rural nature of the City; - Acknowledged the rural setting of the Village and that this type of project would never be proposed for the Village; referred to the formula business ordinance that protects the Village from this type of business; - Stated he was not convinced the East Grand Avenue Enhancement Plan excludes large buildings, as there are large buildings in this area; - Stated that the proposed intensity of this project is a legitimate point as it relates to the impact to the surrounding area; - Supported the revisions to the streetscape enhancements which have a better pedestrian orientation; - With regard to the buffer; he stated this is a mixed -use project and it might be better to have no buffer and to connect the buildings; does not have any problem with the buffer as proposed; - Stated he could not approve this without inclusion of the bus stop; - Noted that this is a key development for this portion of the City, to have key services in the City's commercial core. Action: Council Member Fellows moved to adopt a Resolution denying Specific Plan Amendment 10 -001 located at the southwest of E. Grand Avenue and S. Court land Street applied for by NKT Commercial. Council Member Costello seconded. Discussion ensued on whether any of Specific Plan Amendment findings needed to be addressed. Following brief discussion with City Attorney Carmel regarding the Negative Declaration, Council Member Fellows withdrew his motion. Staff requested a brief recess for discussion. Pursuant to Council policy, Mayor Pro Tem Guthrie moved to continue the meeting past midnight to 12:20 a.m. Council Member Ray seconded, and the motion passed unanimously by voice vote. Minutes: City Council Meeting Page 8 Tuesday, November 9, 2010 City Attorney Carmel requested the Council provide comments on the Mitigated Negative Declaration based on comments regarding inadequacies in the Negative Declaration concerning traffic impacts and analysis, and send it back to the Planning Commission with the direction given on the Specific Plan regarding smaller building size, larger buffer between the residential and commercial uses, and parking issues; and further, to continue this item as well as Items 9.b. and 9.c. to a date uncertain. Action: Council Member Costello moved to return the Mitigated Negative Declaration to the Planning Commission for further consideration on issue of traffic and traffic impacts; to send the Specific Plan Amendment back to the Planning Commission for revisions to setbacks, parking, maximum building size, and inclusion of the bus turnout; and to continue this item to a date uncertain. Council Member Ray seconded, and the motion passed on the following roll call vote: AYES: Costello, Ray, Fellows NOES: Guthrie ABSENT: Ferrara 9.b. Consideration of Tentative Parcel Map 10 -001 and Conditional Use Permit 10- 001; Location: Southwest Corner of East Grand Avenue and South Court land Street; Applicant; NKT Commercial. Recommended Action: The Planning Commission recommends the City Council adopt a Resolution denying Tentative Parcel Map 10 -001 and Conditional Use Permit 10 -001 for the subdivision of 4.47 acres into three parcels and development of a 3,750 square foot commercial building, a 4,200 square foot restaurant, and a 50,881 square foot grocery store (Subarea 3 of the Berry Gardens Specific Plan). If the City Council approves the Planning Commission's recommendation, staff recommends that the City Council refer the alternative site plan to the Planning Commission for review. Council Member Costello moved to continue Item 9.b. to a date uncertain. Mayor Pro Tem Guthrie seconded, and the motion carried on the following roll call vote: AYES: Costello, Guthrie, Fellows, Ray NOES: None ABSENT: Ferrara 9.c. Consideration of Conditional Use Permit 10 -003; Location: Southwest Corner of East Grand Avenue and South Courtland Street; Applicant: Peoples' Self - Help Housing Corporation. Recommended Action: The Planning Commission recommends the City Council deny Conditional Use Permit 10 -003 for a thirty -six (36) unit affordable apartment complex on 1.65 acres (Subarea 4 of the Berry Gardens Specific Plan) based on its recommendation against adopting the Mitigated Negative Declaration (MND) prepared for Specific Plan Amendment 10 -001 (the Commission did not provide any findings to deny the proposed project). Minutes: City Council Meeting Page 9 Tuesday, November 9, 2010 Council Member Costello moved to continue Item 9.b. to a date uncertain. Mayor Pro Tem Guthrie seconded, and the motion carried on the following roll call vote: AYES: Costello, Guthrie, Fellows, Ray NOES: None ABSENT: Ferrara 10. CONTINUED BUSINESS None. 11. NEW BUSINESS None. 12. CITY COUNCIL MEMBER ITEMS None. 13. CITY MANAGER ITEMS None. 14. COUNCIL COMMUNICATIONS None. 15. STAFF COMMUNICATIONS None. 16. COMMUNITY COMMENTS AND SUGGESTIONS None. 17. ADJOURNMENT Mayor Pro Tem Guthrie adjourned the meeting at 12:14 a.m. Tony Fe ayor ATTEST: , dtu Ke lly We jot City C lerk (Approved at CC Mtg /(. 1 3'OlO )