Minutes 2002-03-12
MINUTES
REGULAR MEETING OF THE CITY COUNCIL
TUESDAY, MARCH 12, 2002
COUNCIL CHAMBERS, 215 E. BRANCH STREET
ARROYO GRANDE, CALIFORNIA
1. CALL TO ORDER
Mayor Lady called the Regular City Council meeting to order at 7:05 p.m.
2. ROLL CALL
City Council: Council Members Dickens, Ferrara, Lubin, Mayor Pro Tem Runels
and Mayor Lady were present.
City Staff Present: City Manager Adams; City Attorney Carmel; Director of
Administrative Services Wetmore; Director of Financial Services
Snodgrass; Director of Community Development Strong; Director of
Public Works Spagnolo; and Director of Parks, Recreation. &
Facilities Hernandez.
3. FLAG SALUTE
Members of Boy Scout Troop 70 led the Flag Salute.
4. INVOCATION
Rabbi Norman Mendel, Congregation Beth David, San Luis Obispo, delivered the
invocation.
5. SPECIAL PRESENTATIONS
None.
6. AGENDA REVIEW
None.
6.a. Resolutions and Ordinances Read in Title Only
Council Member Ferrara moved, Mayor Pro Tem Runels seconded, and the motion
passed unanimously that all resolutions and ordinances presented at the meeting shall
be read in title only and all further reading be waived.
7. CITIZENS' INPUT. COMMENTS. AND SUGGESTIONS
Fred Bauer, 212 Short Street, reported he had met with Council Member Ferrara and
reiterated his concerns regarding the pending litigation against the City regarding the
Referendum.
Ed Dorfman, 285 La Cresta, also reported he had met with Council Member Ferrara
regarding the Referendum and indicated that he continued to feel the lawsuit was
CITY COUNCIL MINUTES
MARCH 12,2002
PAGE 2
without merit and should be dismissed. He further emphasized the need for new
housing units within the City.
Ross Kongable, 255 Rodeo Drive, responded to Mr. Bauer's comments regarding
pending legal action against the City.
Bruce Vanderveen, 1273 Branch Mill Road, spoke in favor of the decision made by the
majority of the Council with regard to the development of his parcel.
8. CONSENT AGENDA
Council Member Lubin moved and Council Member Ferrara seconded the motion to
approve Consent Agenda Items 8.a. through 8.d., with the recommended courses of
action:
8.a. Cash Disbursement Ratification.
Action: Approved the listing of cash disbursements for the period February 16,
2002 through February 28, 2002.
S.b. Statement of Investment Deposits.
Action: Received and filed the report of current investment deposits as of
February 28, 2002.
8.c. Consideration of Cash Flow Analysis/Approval of Interfund Advance from
the Water Facility Fund.
Action: Received and filed January 2002 Cash Report and approved the
interfund advance from the Water Facility Fund to cover cash deficit in other
funds at January 31, 2002.
S.d. Consideration of Approval of Minutes.
Action: Approved minutes of the Special and Regular City Council Meetings of
February 26, 2002 as submitted.
AYES: Lubin, Ferrara, Runels, Dickens, Lady
NOES: None
ABSENT: None
There being 5 A YES and 0 NOES, the motion is hereby declared to be passed.
9. PUBLIC HEARING
9.a. Proposed Ordinance Amending the Zoning Map of Arroyo Grande from
General Commercial (GC) to Senior Housing (SR) and Section 16.32.020 of
the Development Code to allow an increase in density; Development Code
Amendment Case No. 01-004 and Presentation on Terms of the Proposed
Disposition and Development Agreement.
Community Development Director Strong presented the staff report and responded to
questions from Council. Staff recommended the Council introduce for first reading by
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MARCH 12,2002
PAGE 3
title only an Ordinance amending the Zoning Map from GC to SR for a 3.23-acre portion
of a 5.01-acre site and amending Development Code Section 16.32.030 to allow a
higher density.
Eric Justesen, RRM Design, representing applicant Larry Persons, gave an overview of
the project including conceptual design renderings and a conceptual landscape plan.
He explained issues with regard to parking requirements and the need for removal of an
existing oak tree located on the property.
City Manager Adams presented a brief summary of the financial terms for the project
which would include funding assistance from the City's Redevelopment Agency. He
introduced Mr. Tim Mulrenan, the City's Redevelopment Agency consultant from the
firm of Rosenow Spevacek Group, Inc., who reviewed the financing structure and
provisions of the proposed Disposition and Development Agreement for the project,
which would allow the developer to finance the residential portion of the project through
a combination of assistance from the Agency and Federal and State Low Income
Housing Tax Credits.
Mayor Lady opened the Public Hearing and stated all members of the public were
invited to come forward and speak on the matter.
George Moylan, Housing Authority of the City of San Luis Obispo, spoke in support of the
program and gave a brief history of their agency's first tax credit development project. In
response to questions posed by Council, Mr. Moylan stated that the project could have a
residency requirement; however, there could be no specific duration of residency required.
He commented that the developer would want to be able to market the units and pointed
out that City residents may have elderty parents who would relocate from areas outside
the City into such a development. He also stated that his organization would be able to
bring Section 8 subsidy to this development and favored the proposed phased
development approach.
Chartes Finney, 150 Via BandeJero, said he felt this was an appropriate place for this
proposed project. He inquired about parking and other amenities, specifically with regard
to whether or not there would be handicapped elevator access to the second floor and
whether there was convenient access to public transportation.
Chuck Fellows, 507 Le Point, expressed concems regarding the removal of the oak tree
on the site. He suggested boxing it and replanting it elsewhere on the site.
George Moylan, Housing Authority of the City of San Luis Obispo, invited the Council to
visit similar developments in San Luis Obispo. He also addressed concerns expressed
by Mr. Finney regarding elevators and stated that although elevators are very expensive
to install, he generally supported the installation of elevators in a proposed development
of this size.
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MARCH 12, 2002
PAGE 4
Hearing no further public comments, Mayor Lady closed the Public Hearing.
Council Member Lubin inquired as to the timing of construction for the commercial
portion of the project.
Larry Persons, Pacific Harbor Homes, explained that although his firm specializes in
residential development, they plan to develop the commercial buildings and have no
plans to sell that portion of the project. He spoke of a potential bank tenant; however,
due to the focus on processing the tax credit application for the residential portion of the
project, no specific timeframes had been determined for the development of the
commercial portion of the project.
Council Member Lubin asked if a market analysis had been prepared for the 108 units.
Mr. Persons replied that preliminary information gathered indicated there would be no
problem with occupying all of the units.
Mayor Pro Tem Runels asked about the timing for Phase 2 of the senior housing
project. Mr. Persons replied that the tax credit rules require that each phase be
completed and occupied before funding is granted for the next phase.
Council Member Ferrara asked if it were possible to construct the commercial buildings
prior to securing tenants. Mr. Persons responded they were not likely to construct the
commercial buildings unless the tenants were known because it would be difficult to
build it to specifications.
There was significant discussion regarding the proposed removal of the oak tree.
Director Strong explained that the Planning Commission deliberated alternatives at
length and based on costs and potential impacts related to relocating the tree on the
site, the Commission opted to mitigate the removal of the tree by requiring the
installation of four new trees of substantial size.
City Attorney Carmel noted for the record that supplemental information had been
distributed to the Council that the Ordinance had been modified on page 2 as follows:
"The maximum allowable density for independent living developments shall be eleven
dwelling units per gross acre, unless between twenty-five (25) percent and one hundred
(100) percent of the total units are to be reserved for low and moderate income
residents."
Council Member Ferrara moved to introduce for first reading by title only an Ordinance
amending the Zoning Map of Arroyo Grande and Section 16.32.020 of the Municipal
Code; Development Code Amendment 01-004, Applied for by Larry Persons, as
amended. Council Member Dickens seconded the motion, and on the following roll-call
vote, to wit:
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MARCH 12, 2002
PAGE 5
AYES: Ferrara, Dickens, Runels, Lubin, Lady
NOES: None
ABSENT: None
There being 5 AYES and 0 NOES, the motion is hereby declared to be passed.
10. CONTINUED BUSINESS
10.a. Consideration of Modifications to the Level of Service (LOS) and Traffic
Impact Study Policy.
Director of Public Works Spagnolo presented the staff report and responded to
questions from Council. Staff . recommended the Council review and approve
recommended modifications to the Level of Service (LOS) and Traffic Impact Study
Policy.
Council Member Ferrara acknowledged that most of his comments he submitted on the
document had been addressed. He referred to page 4, Project Trip Generation and
Design Hour Volumes with regard to the definition of peak hour period and
recommended that the weekday period be expanded in order to include traffic studies
on weekends.
Mayor Lady invited comments from those in the audience who wished to be heard on
the matter. Hearing none, Mayor Lady brought the item back to Council for
consideration.
Council Member Lubin moved to approve the recommended modifications to the Level
of Service (LOS) and Traffic Impact Study Policy. Council Member Ferrara seconded
the motion, and on the following roll-call vote, to wit:
AYES: Lubin, Ferrara, Runels, Dickens, Lady
NOES: None
ABSENT: None
There being 5 AYES and 0 NOES, the motion is hereby declared to be passed.
10.b. Public Input Process for Design Guidelines for Historic Districts.
Community Development Director Strong presented the staff report. Staff
recommended the Council consider the proposed structure and schedule of initial
Design Guideline workshops and advise staff of any concerns or changes desired.
There were no changes to the proposed schedule of workshops. Council received and
filed the report.
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MARCH 12,2002
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11. NEW BUSINESS
11.a. Presentation and Discussion of Castlerock Development Proposal
Regarding Proposed Rancho Grande Park Property.
Council Member Lubin declared a potential conflict of interest due to real property
ownership and stepped down from the dais.
Council Member Ferrara reported he had received a five-page letter from the
developer's attorney the day before which claimed he may have a potential conflict of
interest with regard to this item. He stated that he believed he did not have a conflict;
however, the Fair Political Practices Commission (FPPC) had directed him to send a
copy of the letter and backup documentation to the FPPC for a written opinion. He
stated that since this Agenda item was a presentation of information and did not require
action from the Council tonight, it was his intent to sit and listen to public comments. He
concluded by stating he would not be making any statements this evening and that not
stepping down would not stand in conflict with the way the item is agendized.
City Manager Adams gave a brief introduction of the proposal and introduced Dean
Coker, representing Castlerock Development.
Dean Coker, Senior Planner for Castle rock Development, presented and submitted for
the record a prepared written proposal entitled "A Land Exchange", dated March 12,
2002 (on file in the Administrative Services Department). He gave a brief profile of
Castle rock Development, a brief biography of his professional background, explained
the original development proposal for Tract 1998, and then gave an overview of a
proposal to exchange the 26.6-acre property designated for Tract 1998 with the 10-acre
City-owned property designated for Rancho Grande Park.
Mayor Lady invited comments from those in the audience who wished to be heard on
the matter.
Cynthia Duncan, 507 Rosemary Lane, spoke in opposition.
Donna Mitchell, 323 Via Bandelero, spoke in opposition.
Anna Unkovich, urged the Council to consider all proposals carefully to find a win-win
resolution and to make an informed decision.
Carl Goldman, 125 Rodeo Drive, spoke in opposition.
Maurice Phillips, 158 Avenida de Diamante, spoke in opposition.
Charles Finney, 150 Via Bandelero, spoke in opposition.
Holly Nishida, 122 Avenida de Diamante, spoke in opposition.
Robert Rose, 499 Rosemary Lane, spoke in opposition.
Paul Farrell, 765 Asilo, spoke in opposition.
Bob Brownson, 653 Asilo, served as a spokesman for the preservation of Tract 1998.
Karen Tait, 645 Asilo, read a statement prepared by her husband, Doug Tait, supporting
the concept of a nature/preserve type park for Tract 1998.
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MARCH 12,2002
PAGE 7
AI Neas, 487 Via Bandelero, spoke in opposition.
Charlie DeRego, 247 Via Bandelero, spoke in opposition.
John Lange, 146 Avenida de Diamante, spoke in opposition.
Karen Lange, 146 A venida de Diamante, spoke in opposition.
Ross Kongable, 255 Rodeo Drive, spoke in opposition.
Otis Page, 606 Myrtle, stated the proposal was worthy of the Council's consideration
and further recommended letting the voters decide.
Marian Fiorentino, 337 Mesquite, spoke in opposition.
Norma Hare, 613 Avenida de Diamante, spoke in opposition.
Hearing no further comments, Mayor Lady brought the item back to Council for
discussion.
Council Member Dickens asked Director of Parks, Recreation, and Facilities Hernandez
what the current timeline was for the construction of Rancho Grande Park and whether
the appraisals for the three lots had been obtained.
Director Hernandez replied that construction documents were ready and staff was
prepared to request authorization from the Council at its next regular meeting to solicit
bids. He explained that Phase 1 would consist of grading, irrigation and turf, and stated
that depending on potential award of grant funds, the park could be complete within one
year. He reported that the appraisal of each of the three lots ranged from $200,000 to
$275,000.
Council Member Dickens referred to the City's "Adopt-A-Bench" program for Rancho
Grande Park and asked how much had been collected.
Director Hernandez responded over $5,000 had been donated.
Council Member Dickens commented on quality of life issues; entitlements on Tract
1998; the numerous public hearings the current site of Rancho Grande Park has gone
through; favored continuing to move forward with plans for Rancho Grande Park; and
encouraged Castlerock to continue looking at other reasonable alternatives for Tract
1998.
Mayor Lady thanked the public for providing input with regard to this issue.
Council Member Lubin returned to the dais.
12. CITY COUNCIL MEMBER ITEMS
None.
13. CITY MANAGER ITEMS
None.
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MARCH 12,2002
PAGE 8
14. COUNCIL COMMUNICATIONS
Mayor Pro Tern Runels distributed a letter to the Council regarding a meeting to be held
at 6:30 p.m. on Wednesday, March 13, 2002 at the Cypress Ridge Pavilion building to
discuss boundaries between Nipomo and Arroyo Grande.
15. STAFF COMMUNICATIONS
None.
16. ADJOURNMENT
Mayor Lady adjourned the meeting at 10:33 p.m. to Wednesday, March 20, 2002, at
6:45 p.m., in the City Council Chambers located at 215 E. Branch Street, Arroyo
Grande, California, then to a Special Meeting on Wednesday, March 20, 2002 at 7:00
p.m. The next Regular Meeting of the City Council will be Tuesday, March 26, 2002, at
7:00 p.m., in the City Council Chambers, located at 215 E. Branch Street, Arroyo
Grande, California.
-~
Michael A. Lady, r
ATTEST: