Agenda Packet 2003-11-11
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CITY COUNCIL Citt of
AGENDA Arroto Grande
Tony M. Ferrara Mayor
Jim Dickens Mayor Pro Tem Steven Adams City Manager
Thomas A. Runels Council Member Timothy J. Carmel City Attorney
Sandy Lubin Council Member Kelly Wetmore Director, Administrative Services
Joe Costello Council Member
AGENDA SUMMARY
CITY COUNCIUREDEVELOPMENT AGENCY
TUESDAY, NOVEMBER 11, 2003
7:00 P.M.
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Arroyo Grande City C.ouncil Chambers
215 East Branch Street, Arroyo Grande
1. CALL TO ORDER: 7:00 P.M.
2. ROLL CALL COUNCIL/RDA
3. FLAG SALUTE: VFW POST 29
4. INVOCATION: PASTOR GEORGE LEPPER, PEACE
LUTHERAN CHURCH, ARROYO GRANDE
5. SPECIAL PRESENTATIONS:
.5.a. Proclamation Recoanizina the 50th Anniversary of Veterans Dav. November 11.
2003
5.b. Mavor's Commendation Recoanizina Corporal Nicholas Emerlina. United
States Marine Corps
6. AGENDA REVIEW:
6a. Move that all resolutions and ordinances presented tonight be read in title only and
all further readings be waived.
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AGENDA SUMMARY - NOVEMBER 11, 2003
PAGE 2
7. COMMUNITY COMMENTS AND SUGGESTIONS:
This public comment period is an invitation to members of the community to present
issues, thoughts, or suggestions on matters not scheduled on this agenda.
Comments should be limited to those matters that are within the jurisdiction of the
City Council. The Brown Act restricts the Council from taking formal action on
matters not published on the agenda. In response to your comments, the Mayor or
presiding Council Member may:
. Direct City staff to assist or coordinate with you.
. A Council Member may state a desire to meet with you.
. It may be the desire of the Council to place your issue or matter on a future
Council agenda.
Please adhere to the following procedures when addressing the Council:
. Comments should be limited to 3 minutes or less.
. Your comments should be directed to the Council as a whole and not directed
to individual Council members.
. Slanderous, profane or personal remarks against any Council Member or
member of the audience shall not'be permitted.
8. CONSENT AGENDA:
The following routine items listed below are scheduled for consideration as a group.
The recommendations for each item are noted. Any Council Member may request
that any item be withdrawn from the Consent Agenda to permit discussion or change
the recommended course of action. The City Council may approve the remainder of
the Consent Agenda on one motion.
8.a. Cash Disbursement Ratification (SNODGRASS)
Recommended Action: Approve the listing of cash disbursements for the period
October 15, 2003 through October 31, 2003.
8.b. Statement of Investment Deposits (SNODGRASS)
Recommended Action: Receive and file the report of current investment deposits
as of October 31, 2003.
8.c. Consideration of APproval of Minutes (WETMORE)
Recommended Action: Approve the minutes of the Regular City Council Meeting of
October 28,2003 as submitted.
8.d. Consideration of APpeal of Viewshed Review Case No. 03-004: 195 North Elm
Street (HEFFERNON)
Recommended Action: Adopt Resolution upholding the appeal of the Planning
Commission's denial of Viewshed Review Case No. 03-004.
8.e. Consideration of Authorization to Refund APplication Fee - Watershed
Education Fair and Creek Clean-Up Dav (HEFFERNON)
Recommended Action: Approve the request from Central Coast Salmon
Enhancement, Inc. to refund the application fee for Temporary Use Permit 03-023.
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AGENDA SUMMARY - NOVEMBER 11, 2003
PAGE 3
9. PUBLIC HEARINGS:
9.a. Continued Public Hearlna - Consideration of APpeal of Amend~ Conditional
Use Permit Case No. 03-004: 1220 Farroll Avenue: Coastal ChrisJian School
(HEFFERNON)
Recommended Action: Adopt Resolution denying the appeal of Amended
Conditional Use Permit 03-004.
9.b. Consideration of Resolution Modifyina the Rate Structure for Exlstina
Development Imoact Fees (ADAMS)
Recommended Action: Adopt Resolution modifying the rate structure for existing
development impact fees.
9.c. Consideration of General Plan Amendment Case No. 03-005 - City of Arrovo
Grande Housina Element (HEFFERNON)
Recommended Action: Consideration of the goals, policies and programs
contained in the 2003 Draft Housing Element and adoption of a Resolution adopting
a Negative Declaration, instructing the Director of Administrative Services to file a
Notice of Determination, and approving General Plan Amendment 03-005.
10. CONTINUED BUSINESS:
None.
11. NEW BUSINESS:
11.a. Consideration of Busin s Li n Ordin n
5.12 5.20 5.32 5.40 5.48 nd 5 76 f tI 5 of he Arr I
Code and Addlna Thereto a New Chapter 5.02 Reaardlna Bu.l..... LIcenses.
and a Resolution Establishina an Annual Business License Fee Schedule
(SNODGRASS)
Recommended Action: 1) Adopt Ordinance Repealing Chapters 5.04, 5.08, 5.12,
5.20, 5.32, 5.40, 5.48 and 5.76 of Title 5 of the Arroyo Grande Municipal Code and
Adding Thereto a New Chapter 5.02 Regarding Business Licenses; and, 2) Adopt
Resolution establishing a business license fee schedule.
11.b. Consideration of Fiscal Year 2003-04 First Quarter Budaet Status Report
(SNODGRASS)
[CQUNCIURDA]
Recommended Action: 1) Approve carryover appropriations as detailed; 2)
Approve detailed budget adjustments and recommendations; 3) Approve/Deny
requests for additional appropriations in the General Fund as detailed; and, 4)
Approve Schedules A through F included in the First Quarter Status Report.
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AGENDA SUMMARY - NOVEMBER 11, 2003
PAGE 4
12. CITY COUNCIL MEMBER ITEMS:
The following item(s) are placed on the agenda by a Council Member who would like
to receive feedback, direct staff to prepare information, and/or request a formal
agenda report be prepared and the item placed on a future agenda. No formal
action can be taken.
a) None.
13. CITY MANAGER ITEMS:
The following item(s) are placed on the agenda by the City Manager in order to
receive feedback and/or request direction from the Council. No formal action can be
taken.
a) None.
14. COUNqlL COMMUNICATIONS:
Correspondence/Comments as presented by the City Council.
15. STAFF COMMUNICATIONS:
Correspondence/Comments as presented by the City Manager.
16. COMMUNITY COMMENTS AND S'JGGESTIONS:
This public comment period is an invitation to members of the community to present
issues, thoughts, or suggestions. Comments should be limited to those matters that
are within the jurisdiction of the City Council. The .Brown Act restricts the Council
from taking formal action on matters not published on the agenda.
17. ADJOURNMENT
+++++++++++
All staff reports or other written documentation relating to each item of business referred to
on the agenda are on file in the Administrative Services Department and are available for
public inspection and reproduction at cost. If requested, the agenda shall be made
available in appropriate alternative formats to persons with a disability, as required by the
Americans with Disabilities Act. To make a request for disability-related modification or
accommodation, contact the Administrative Services Department at 805-473-5414 as soon
as possible and at least 48 hours prior to the meeting date.
+++++++++++
Note: This agenda is subject to amendment up to 72 hours prior to the date and time set
for the meeting. Please refer to the agenda posted at City Hall for any revisions, or call the
Director of Administrative Services at (805) 473-5414 for more information.
www.arrovoarande.ora
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'WIFOR~
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CHonorart ~oc(amation
~cognizing tfW 50tft Annt"ersart
of C{)eterattS q)a'l
~em&er 11, 2003
WHEREAS, tens of millions of Amerlc:ans have served in the Armed Fon:es of the United States
during the past century; and
WHEREAS, hundreds of thousands of Amerlc:ans have given their Iwes while sentng In the
Armed Foroos during the past century; and
WHEREAS, the contributions and sac:rlfices of the men and women who ~ in the Armed
Forces have been vital in maintaining the freedoms and way of life enjoyed 'by Amerk:ana; and
WHEREAS, there are currently more than 25 mlDlon lawng
AIaerIc:an veterans, many of whom put their lives on the line
to preserve our freedom; aiad
WHEREAS, veterans have served on the land, at sea, and In
the air, from the shores ,of Omaha Beach and the jungles of
WetnaIn, to the mountains of AtgIumIstan, the sands of the
Persian Gulf, and many other battlefields around the globe;
and
WHEREAS, the President of the United States has designated the week of NO\'ember 9 .
November 15, 2003 as "National Veterans Awareness Week" for the purpose of emphasizing
educ:ational programs for students concemlng the'contrIbutions and sacrifices of veterans; and
WHEREAS, veterans have given us an extraordinary legac:y of patriotism ud honor, and their
service represents the highest form of citizenship.
NOW, THEREFORE, BE IT RESOLVED, that I, Tony M. Ferrara, Mayor of the City of Arroyo Grande,
on behalf of the City Council, recognize Veterans Day, November 11, 2003 and November 9 -
November 15, 2003, as National Veterans Awareness Week, and do hereby urge all Amerlc:ans
to recognize the valor and sacrifice of our veterans through appropriate public ceremonies and
private prayers.
IN WITNESS WHEREOF, I have hereunto set my hand and caused ,the Seal
of the City of Arroyo Grande to be allixed this 11" day of N0\'8mber, 2003.
TONY M. FERRARA, MAYOR
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MEMORANDUM
TO: CITY COUNCIL
FROM: LYNDA K. SNODGRASS, DIRECTOR OF FINANCIAL SERVICES e;l
'BY: JANET M. HUWALDT, ACCOUNTING SUPERVISOR ~
SUBJECT: CASH DISBURSEMENT RATIFICATION
DATE: NOVEMBER 11, 2003
RECOMMENDATION:
It is recommended ,the City Council ratify the attached listing of cash disbursements for
the period October 16- October 31, 2003.
FUNDING:
There is a $1,276,444.22 fiscal impact. All payments are Within the existing budget.
DISCUSSION:
The attached listing represents the cash disbursements required of normal and usual
operations. It is requested that the City Council approve these payments.
AL TERNA TIVES:
The following alternatives are provided for the Council's consideration:
. Approve staffs recommendation;
. Do not approve staffs recommendation;
. Provide direction to staff.
Attachments:
Attachment 1 - Cash Disbursement listing
Attachment 2 - October 17, 2003 Accounts Payable Check Register
Attachment 3 - October 17, 2003 Payroll Checks and Benefit Checks
Attachment 4 - October 24, 2003 Accounts Payable Check Register
Attachment 5 - October 31, 2003 Accounts Payable Check Register
Attachment 6 - October 31, 2003 Payroll Checks and Benefit Checks
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A IT ACHMENT 1
CITY OF ARROYO GRANDE
CASH DISBURSEMENTS
7M de 'P~ 01 ~dJe", 167~ ~dJe",31. 2003
"".. ,'~
~ovember11,2003
Presented are the cash disbursements issued by the Department of Financial Services for
the period October 16 to October 31, 2003. Shown are cash disbursements by week of
occurrence and type of payment.
WEEK TYPE OF PAYMENT AnA~ AMOUNT
October 17, 2003
Accounts Payable Cks 112679-112774 2 $ 126,890.29
Payroll Checks and Benefit Checks 3 342,879.71
469,770.00
October 24, 2003
Accounts Payable Cks 112775-112893 4 209,040.33
-
October 31, 2003
Accounts Payable Cks 112894-113024 5 307,099.16
Payroll Checks and Benefit Checks 6 290,534.73
597,633.89
Two Week Total $ 1.276.444.22
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I.b.
MEMORANDUM
TO: CITY COUNCIL
FROM: LYNDA K. SNODGRASS, DIRECTOR OF FINANCIAL SERVICE9--
BY: JANET M. HUWALDT, ACCOUNTING SUPERVISOR ~
SUBJECT: STATEMENT OF INVESTMENT DEPOSITS
DATE: NOVEMBER 11, 2003
Attached please find a report listing the current investment deposits of the City of Arroyo
Grande, as of October 31, 2003, as required by Government Code Section 53646 (b).
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CITY OF ARROYO GRANDE
MONTHLY INVESTMENT REPORT
,44 0/ ~etJe". 31, 2()()3
~ove~ber11,2003
This report presents the City's investments as of October 31, 2003. It includes all
investments ~anaged by the City, the investment institution, type of investment,
maturity date, and rate of interest. As of October 31, 2003, the investment portfolio was
in co~pliance with all State laws and the City's investment policy.
Current Investments:
The City is currently investing all short-term- excess cash in the Local Agency
Investment Fund (LAIF) administered by the State Treasurer. This is a very high
quality investment in terms of safety, liquidity, and yield. The City may readily
transfer the LAIF funds to the City's checking account when funds are needed. At this
time, the City does not hold any other investments. The following is a co~parison of
investments based on book values as of 'October 31, 2003 co~pared with the prior
~onth and the prior year.
LAIF INVESTMENT CUR.RENff Jl>IIQI.Q~ P.... YEAR
Date: October 2003 Septe~ber 2003 October 2002
Amount: $11,900,000 11,900,000 . 12,700,000
Interest Rate: 1.63% 1.63% 2.49%
B.c.
MINUTES
REGULAR MEETING OF THE CITY COUNCIL
TUESDAY, OCTOBER 28,2003
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 Members Runels, Costello, Mayor Pro Tem Dickens, and Mayor
Ferrara were present. Council Member Lubin was absent.
City Staff Present: City Manager Adams, City Attorney Carmel, Director of Administrative
Services Wetmore, Director of Public Works Spagnolo, Acting Community
Development Director Heffernon, Assistant Planner Bergman, Planning
Intern Krasnove, Chief Building Inspector Schmidt, and Director of Parks,
Recreation and Facilities Hemandez.
3. FLAG SALUTE
Members of the Knights of Columbus led the Flag Salute.
4. INVOCATION
Pastor Robert Banker, Open Door Church, Oceano, delivered the i'''IVocation.
5. SPECIAL PRESENTATIONS
5.a. Honorary Proclamation Recognizing October as Disability Achievement Month.
Mayor Ferrara presented Mr. Mark Shaffer, Executive Director, UCP of San Luis Obispo, with an
Honorary Proclamation recognizing October as Disability Achievement Month.
6. AGENDA REVIEW
None.
6.8. Resolutions and Ordinances Read in Title Only
Council Member Runels moved, Council Member Costello 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
None.
8. CONSENT AGENDA
Mayor Pro Tem Dickens requested that Item 8.g. be pulled for separate roll-call vote.
Council Member Costello moved, and Council Member Runels seconded the motion to approve
Consent Agenda Items 8.a. through 8.1., with the recommended courses of action. City Attorney
Carmel read the Ordinance title for Item 8.e. The motion carried on the following roll-call vote:
AYES: Costello, Runels, Dickens, Ferrara
NOES: None
ABSENT: Lubin
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CITY COUNCIL MINUTES
OCTOBER 28, 2003
PAGE 2
a.a. Cash Disbursement Ratification.
Action: Approved the listings of cash disbursements for the period October 1, 2003 -
October 15, 2003.
8.b. Consideration of Cash Flow Analysis/Approval of Interfund Advance from the
Water Facility Fund.
Action: Received and filed the September 2003 cash report and approved the interfund
advance from the Water Facility Fund to cover cash deficits in other funds at September
30, 2003.
8.c. Consideration of Adjustment to Medical Insurance Benefits for Arroyo Grande
Police Officers'- Association (AGPOA) and, Arroyo Grande Career Firefighters'
Association (AGCFA).
Action: 1) Adopted Resolution No. 3715 Establishing the City's Contribution Toward
Health Care Coverage for Members of the AGPOA; and 2) Adopted Resolution No. 3716
Establishing the City's Contribution Toward Health Care Coverage for Members of the
AGCFA.
a.d. Consideration of Approval of Minutes.
Action: Approved the minutes of the Special and Regular City Council Meetings of
October 14, 2003 as submitted.
8.e. Consideration of Adoption of Ordinance Amending, Repealing and Adding
Provisions to Titles 1,2,3 and 16 of the Arroyo Grande Municipal Code.
Action: Adopted Ordinance No. 547.
8.f. Consideration of Award of Bid for Contracted Custodial Services.
Action: Awarded the bid for contract custodial services to Clean Sweep Janitorial in the
amount of' $4,134.15 per month, and authorize the Mayor to execute the Contractor
Services Agreement.
Mayor Pro Tem Dickens declared a conflict of interest on Item 8.g. due to family ownership of
real property near the project.
8.g. Consideration of Acceptance of the Branch Mill Road Rehabilitation and Drainage
Improvements Project, PW 2003-03.
Recommended Action: 1) Accept the project improvements as constructed by Papich
Construction Company in accordance with the plans and specifications for the Branch
Mill Road Rehabilitation and Drainage Improvements Project; 2) Direct staff to file a
Notice of Completion; and, 3) Authorize release of retention of $21,944.36, thirty-five (35)
days after the Notice of Completion has been recorded, if no liens have been filed.
Council Member Runels moved to approve Item 8.g. with the recommended course of action,
Council Member Costello seconded the motion, and the motion carried on the following roll~call
vote:
AYES: Runels, Costello, Ferrara
NOES: None
ABSENT: Lubin, Dickens
CITY COUNCIL MINUTES
OCTOBER 28, 2003
PAGE 3
9. PUBLIC HEARINGS:
9.a. Consideration of Appeal of Viewshed Review Case No. ,03-004; 195 N. Elm Street;
S. Accornero.
Planning Intern Krasnove presented the staff report and recommended the Council adopt a
Resolution denying the appeal of the Planning Commission's denial of Viewshed Review Case
No. 03-004.
Mayor Ferrara opened the public hearing.
- .
Sandv Accornero, appellant, spoke in support of the proposed project and submitted letters in
support of the project from the following neighbors located on N. Elm Street: Mr. and Mrs. Ray o.
Valdez, Mr. Leslie Kight, Ms. Imogene "Jean" Hubbard, and Tony and Suzan Marinelli (on file in
the Administrative Services Department).
Pam Accornero, spoke in support of the proposed project.
Ed Arnold, Planning Commissioner, stated there was a concern at the Planning Commission
level that the project would set a precedent for the neighborhood.
JaCQue Dieres, spoke in support of the proposed project.
Sandy and Pam Accornero responded to public comments.
Upon hearing no further public comments, Mayor Ferrara closed the public hearing.
Council and staff discussion ensued with regard to the required findings for viewshed
applications; clarification that a precedent had already been set as there were other two-story
homes in the neighborhood; and acknowledgement of the letters from the neighboring residents
regarding support for the project. Following discussion, City Attorney Carmel advised the
Council that it could take tentative action to uphold the appeal and approve the project and direct '
staff to return to the Council with a supporting Resolution.
Council Member Costello moved to take tentative action to uphold the appeal and approve
Viewshed Review Case No. 03-004 and direct staff to return to Council with a supporting
Resolution. Mayor Pro Tern Dickens seconded the motion, and on the following roll-call vote, to
wit:
AYES: Costello, Dickens, Runels, Ferrara
NOES: None
ABSENT: Lubin
There being 4 AYES, 0 NOES, and 1 ABSENT, the motion is hereby declared to be passed.
9.b. Consideration of Appeal of Amended Conditional Use Permit Case No. 03-004;
1220 Farroll Avenue; Coastal Christian School.
Assistant Planner Bergman presented the staff report and recommended the Council adopt a
Resolution denying the appeal of the applicant and requiring the placement of two fire hydrants;
one located in front of the subject property and one located within the boundaries of the property
between the existing chapel and sanctuary and the school campus.
CITY COUNCIL MINUTES
OCTOBER 28, 2003
PAGE 4
Mayor Ferrara opened the public hearing.
Lance Tullis, appellant, spoke in support of the ,placement of one fire hydrant; however, he
requested reconsideration of the requirement for the placement of the second fire hydrant at the
rear of the property.
Upon hearing no further public comments, Mayor Ferrara closed the public hearing.
Council and staff discussion ensued concerning the current student population, the temporary
nature of the original approval, whether or not the buildings at the back of the property were
portable, clarification of ~niform Fire Code requirements concerning placement of fire hydrants,
and whether or not any consideration had been given to the placement of one centrally located
fire hydrant on-site instead of the two being proposed. In the absence of the Fire Chief, City
Manager Adams provided an overview of the Chief's professional opinion of requiring installation
of two fire hydrants.
Council Members Costello and Runels supported the Planning Commission's action and did not
support the appeal, expressing concems for student safety. Mayor Pro Tem Dickens suggested
a need for compromise in order to be consistent with the project's original approval. Following
further discussion regarding the fire hydrants, Mayor, Ferrara suggested going back to the
drawing board to review other options. He stated he would like to see specific references in the
Uniform Fire Code and Uniform' Building Code requirements that establish the basis for two fire
hydrants.
Mayor Pro Tem Dickens moved to continue the consideration of the appeal of Amended
Conditional Use Permit 03-004 at 1220 Farroll Avenue and requested staff to bring back
additional information with regard to the relevant Fire Code requirements and how the conditions
imposed in the previously approved Resolutions for the original Conditional Use Permit have
changed to date. Mayor Ferrara seconded the motion. Council Member Costello inquired if the
item was being continued to a date specific. City Manager Adams recommended it be continued
to the next regular meeting of November 11, 2003. Mayor Pro Tem Dickens agreed to the
amended motion, Mayor Ferrara seconded and on the following roll-call vote, to wit:
AYES: Dickens, Ferrara, Costello
NOES: Runels
ABSENT: Lubin
There being 3 AYES, 1 NO, and 1 ABSENT, the motion is hereby declared to be passed.
9.c. Consideration of Development Code Amendment Case No. 02-001 and Vesting
Tentative Tract Map Case No. 02-095; a Proposed Residential Subdivision of a
29.46-Acre Site into 15 Single Family Lots, Two (2) Open Space Parcels, and a 1.28-
Acre Parcel for Future Development of Four (4) Moderate-lncome Units for
Property Located within the Royal Oaks Planned Development; Lot 182 and Portion
of Lot B, Tract 1390- Don McHaney.
Acting Community Development Director Heffernon presented the staff report and recommended
the Council introduce an Ordinance amending Ordinance No. 355 C.S., approving Development
Code Amendment 02-001 and adopting a Resolution approving Tentative Tract Map 02-005.
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CITY COUNCIL MINUTES
OCTOBER 28, 2003
PAGE 5
Mayor Ferrara opened the public hearing.
Grec Nester, developer, spoke in support of the project; however, he did not support the
affordable housing component. He stated he would support the payment of affordable housing
in-lieu fees.
Carlo Alfono, JLH Partnership, spoke in support of the project and stated that the extension of
Grace Lane is a major component of the project.
Bob Miller, Via Vaquero, spoke in support of the project; however he expressed concerns with
the existing fence running along the back of Via Vaquero and requested that the fence be
replaced commensurate with fences allowed in the Rancho Grande subdivision.
Liz Ruth, Avenida de Diamante, referred to the pedestrian tail, which gets lots of use, and stated
that it needs to be preserved. She said it can provide a vital link to Rancho Grande Park and the
South County Library.
Ruth McMillan, Avenida de Diamante, stated this development could hinder her view and she
does not want to lose the view. She expressed concerns regarding the width of Grace Lane,
more traffic directed to Rodeo Drive, the price and size of the homes, and whether or not there
would be a Homeowners Association for the development.
Jim Guthrie, Planning Commissioner, addressed the issue regarding affordable housing in-lieu
fees versus affordable housing units and stated that the in-lieu fees would not be sufficient.
Grea Nester, developer, responded to concerns expressed during public comment.
Upon hearing no further public comments, Mayor Ferrara closed the public hearing.
Council Member Costello emphasized the need to retain the open space permanently; agreed
that affordable housing in-lieu fees cannot compensate for the loss of affordable housing in this
project; and supported the project as proposed.
Council Member Runels supported the project as proposed.
Mayor Pro Tem Dickens stated he was not in favor of the proposed Vesting Tentative Tract Map
Condition of Approval #8 concerning the affordable housing component, and further expressed
concerns regarding the width of Grace Lane, the proposed design of driveways within the
project, the width of the dirt bench, and the fencing. Mayor Pro Tem Dickens recommended the
applicant return with modifications to the project to address these concerns.
Mayor Ferrara commented on the proposed pedestrian trail and the proposed affordable housing
component. He stated he did not see suitability of common wall housing in this development and
stated the design was inconsistent with established zoning patterns. He did not support the
project as proposed and encouraged single-family housing in the affordable housing component
of the project. He recommended true inclusionary housing for the project or, as a last resort,
acceptance of affordable housing in-lieu fees. He did not support the project as proposed.
Following discussion, Council Member Costello moved to direct staff to work with the applicant to
develop a project to include inclusionary housing, preservation of the existing trail, and fencing
around the border of the project that would be consistent with the CC&R's for Rancho Grande.
Mayor Ferrara asked for clarification on whether the motion included a better depiction for a I
formal trail network. Council Member Costello said yes. Mayor Pro Tem Dickens seconded the
motion. i
CITY COUNCIL MINUTES
OCTOBER 28, 2003
PAGE 6
Discussion ensued with regard to the timeframe for returning to Council on this item. City
Manager Adams .recommended that the item not be continued to a date certain. Mr. McHaney
expressed concerns with the direction that was being given regarding the affordable housing
component of the project. Further discussion was held with regard to density bonuses. The
applicant was encouraged to come back with several different design options for affordable
housing that did not include common wall housing.
On the following roll-call vote, to wit:
AYES: Costello, Dickens, Runels, Ferrara .
NOES: None
ABSENT: Lubin
There being 4 AYES, 0 NOES and 1 ABSENT, the motion is hereby declared to be passed.
Mayor Ferrara called for a break at 9:45 p.m. The Council reconvened at 9:50 p.m.
9.d. Consideration of Proposed Resolution Amending the City's Standard Schedule for
Development Impact Fees.
Director of Public Works Spagnolo presented the staff report and recommended the Council
adopt a Resolution amending the City's standard schedule for Development Impact Fees to
establish a water facility fee for an 8-inch water meter.
Mayor Ferrara opened the public hearing, and upon hearing no public comments, he closed the
public hearing.
Council Member Runels moved to adopt a Resolution amending the City's standard schedule for
Development Impact Fees to establish a water facility fee for an 8-inch water meter. Mayor Pro
Tem Dickens seconded the motion, and on the following roll-call vote, to wit:
AYES: Runels, Dickens, Costello, Ferrara
NOES: None I
ABSENT: Lubin
There being 4 AYES, 0 NOES, and 1 ABSENT, the motion is hereby declared to be passed. ~
~
9.e. Consideration of Proposed Ordinance Repealing Chapters 5.04, 5.08, 5.12, 5.20, ~
5.32, 5.40, 5.48 and 5.76 of Title 5 of the Arroyo Grande Municipal Code and Adding ,!
Thereto a New Chapter 5.02 Regarding Business Licenses. !
I'i
City Manager Adams presented the staff report and recommended the Council introduce an Ii
Ordinance repealing Chapters 5.04, 5.08, 5.12, 5.20, 5.32, 5.40, 5.48 and 5.76 of Title 5 of the Ii
Arroyo Grande Municipal Code and adding thereto a new Chapter 5.02 regarding Business I
Licenses. City Manager Adams noted that a revised Ordinance had been distributed to the ,
Council prior to the meeting which added Contractors to the list of specific businesses which I
would be charged at a separate rate established by City Council Resolution. He further r
explained that if the Ordinance were introduced, a Resolution establishing a Business License f
--.
CITY COUNCIL MINUTES
OCTOBER 28, 2003
PAGE 7
Fee Schedule would be presented for Council consideration at the next regular meeting following
adoption of the Ordinance.
Mayor Ferrara opened the public hearing, and upon hearing no public comments, he closed the
public hearing.
Council Member Costello moved to introduce an Ordinance repealing Chapters 5.04, 5.08, 5.12,
5.20, 5.32, 5.40, 5.48 and 5.76 of Title 5 of the Arroyo Grande Municipal Code and adding
thereto a new Chapter 5.02 regarding Business Licenses. Mayor Pro Tem Dickens seconded the
motion, and on the following roll-call vote, to wit:
- .
AYES: Costello, Dickens, Runels, Ferrara
NOES: None
ABSENT: Lubin
There being 4 AYES, 0 NOES, and 1 ABSENT, the motion is hereby declared to be passed.
10. CONTINUED BUSINESS
None.
11. NEW BUSINESS
None.
12. CITY COUNCIL REPORTS
a. MAYOR TONY M. FERRARA:
(1) San Luis Obispo Council of Governments/San Luis Obispo Regional Transit
Authority (SLOCOG/SLORT A). Received presentation on regional program
projects and held discussion regarding priority and status of programmed funding
for significant regional transportation projects.
(2) Integrated Waste Management Authority (IWMA). No report. II
(3) Other. None.
f'
r
,
b. MAYOR PRO TEM JIM DICKENS: f
(1) South County Youth Coalition. Reported on efforts to provide weekend i:
!
activities for teens; Reported on the Bright Futures Program, an after-school I
learning program for K-6 grade students; Received presentation by Sylvan Levine I
on "Male Voices", a program for older male teens; and Reported that 40 youth I
attended a conference in San Jose. f
(2) South San Luis Obispo County Sanitation District (SSLOCSD). Met to f
discuss the Safety Railing and Catwalk project; Reported that the plant continues f
\
to meet its discharge requirements. !
(3) Other. None. i
!,
COUNCIL MEMBER THOMAS A. RUNELS: !
c. i
,
(1) Zone 3 Water Advisory Board. No report; however, the Technical Committee I
met to discuss the retrofit upgrade to the water treatment plant. t
f
(2) County Water Res~urces Advisory Committee (WRAC). No report. !
(3) Other. Reported that the Santa Maria Valley case is now being heard in court. I
CITY COUNCIL MINUTES
OCTOBER 28, 2003
PAGE 8
d. COUNCIL MEMBER SANDY LUBIN: (ABSENT)
(1) South County Area Transit (SCAT). No report.
(2) Economic Vitality Corporation (EVC). No report.
(3) Other. None.
e. COUNCIL MEMBER JOE COSTELLO:
(1) Air Pollution Control District (APCD). No report.
(2) Other. Attended an EVC meeting.
13. CITY COUNCIL MEMBER ITEMS:
a) Discussion regarding Request for Financial Assistance to South San Luis Obispo County
Sanitation District from the San Luis Obispo County Flood Control and Water
Conservation District Zone 1 and 1/A Advisory Committee (DICKENS)
Mayor Pro Tem Dickens gave an overview of the request for financial assistance for funding of a
Sedimentation Analysis and Alternatives Study for Arroyo Grande Creek and Los Serros Creek
Flood Control Channels and sought comments and direction from the Council. Council
discussion ensued regarding sediment accumulation in the creeks, maintenance of the creek
channels, and the proposed study objectives. Mayor Ferrara stated that based on the outlined
objectives, he did not support the Sanitation District funding a portion of the study at a cost of
$177,000. He suggested a more focused study that deals with implementation of an action plan
to solve the problem, to be able to obtain the appropriate permits and start work. He also
suggested that Salmon Enhancement go back to the originator of the grant and ask them if some
of the objectives can be reconfigured to focus on remedying the immediate problem. Council
Member Runels agreed that the objectives should be action-oriented. Council Member Costello
commented that there might be a way to tie the objectives to the direct results of the failure of the
levy. Mayor Pro Tem Dickens indicated he would take the Council's comments back to the next
Sanitation District meeting.
b) Update regarding plans to schedule public workshops to obtain public feedback on future
land uses on properties in the City's Sphere of Influence (Frederick and Williams
properties) (FERRARA)
Mayor Ferrara reported that he had met with the Williams and Frederick families and gave an
overview of the meeting, which focused on the funding status of the EI Campo PSR. He also
reported on discussion held regarding the structure for future community workshops and
outreach efforts to obtain public feedback.
14. CITY MANAGER ITEMS:
None.
15. COUNCIL COMMUNICATIONS:
None.
16. STAFF COMMUNICATIONS:
City Manager Adams announced that the new lights are up at the Soto Sports Complex and
invited the Council and public to a brief "lighting" ceremony on Thursday at 5:00 p.m. City
Manager Adams also reported that Fire Chief Fibich and two Arroyo Grande units are currently in
Southern California fighting the ongoing fires.
--....------..----- --------~
CITY COUNCIL MINUTES
OCTOBER 28, 2003
PAGE 9
17. COMMUNITY COMMENTS AND SUGGESTIONS:
None.
18. ADJOURNMENT
Mayor Ferrara adjourned the meeting at 10:40 p.m.
- .
Tony M. Ferrara, Mayor
ATTEST:
Kelly Wetmore, Director of Administrative Servlcesl
Deputy City Clerk
(Approved at CC Mtg )
----
B.d.
MEMORANDUM
TO: CITY COUNCIL
FROM: ~ -If.KELL Y HEFFERNON, ACTING COMMUNITY DEVELOPMENT
, J,DIRECTOR
BY: ~, JIM BERGMAN, ASSISTANT PLANNER
SUBJECT: CONSIDERATION OF APPEAL OF VIEWSHED REVIEW 03-004; 195 N.
ELM STREET
DATE: NOVEMBER 11, 2003
RECOMMENDATION:
It is recommended the City Council adopt the attached Resolution upholding the appeal
of the Planning Commission's denial of Viewshed Review 03-004.
FUNDING: .
No fiscal impact.
DISCUSSION:
On October 28, 2003, the City Council held a public hearing to consider Viewshed
Review 03-004, requesting an expansion and addition to the rear unit of an existing
duplex at 195 North Elm. At this meeting, the City Council took tentative action to
uphold the appeal and directed staff to return with an appropriate supporting Resolution
with all necessary findings.
AL TERNA TIVES:
The following alternatives are presented for Council consideration:
- Adopt the attached resolution approving the appeal of the Planning Commission's
denial of View shed Review 03-004 as presented; or
- Direct staff to draft an alternate resolution and return at a specified date; or
- Provide other direction to staff.
-- ---------.. -----
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE UPHOLDING THE APPEAL OF THE
PLANNING COMMISSION'S DENIAL OF VIEWSHED
REVIEW 03-004, LOCATED AT 195 ,NORTH ELM, APPLIED
FOR BY STEVE ACCORNERO
WHEREAS, after holding a duly noticed public hearing, and considering all evidence, the
Planning Commission of the City of Arroyo Grande denied Viewshed Review 03-004 on
September 2,2003 in accordance with the Municipal Code of the City of Arroyo Grande;
and
WHEREAS, the . Planning Commission's denial of Viewshed Review '03-004 was
appealed to the City Council of the City of Arroyo Grande; and
WHEREAS. the City Council considered the above project at a duly noticed public
hearing on October 28, 2003 in accordance with the Municipal Code of the City of Arroyo
Grande; and
WHEREAS, the City Council finds that the proposed project is consistent with the City's
General Plan, Development Code, and categorical exemption under the. provisions of the
California Environmental Quality Act (CEQA); and
WHEREAS, the City Council finds, after due study, deliberation and public hearing and
considered all evidence presented the following circumstances exist:
Required Findings:
Viewshed Review Findings:
1. The proposed structure is consistent with the intent of Section 16.16.130 of the
Development Code;
2. The proposed structure is consistent with the established scale and character of the
neighborhood and will not unreasonably or unneces~arily affect views of surrounding
properties;
3. The proposed structure will not unreasonably or unnecessarily interfere with the
scenic view from any other property, judged in light of permitting reasonable use and
development of the property on which the proposed structure or expansion is to occur.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo
Grande hereby upholds the appeal of the Planning Commission's denial of Viewshed
Review 03-004, based on the above findings and sUbject to the conditions of approval
attached hereto as Exhibit A and incorporated herein.
RESOLUTION NO.
PAGE 2 of3
On motion by Council member , seconded by Council member , and by the
following roll call vote, to wit:'
AYES:
NOES: '
ABSENT:
the foregoing Resolution was adopted this 11th day of November, 2003.
- .
RESOLUTION NO.
PAGE 3 of3
TONY M. FERRARA, MAYOR
ATTEST:
KELLY WETMORE, DIRECTOR OF ADMINISTRATIVE SERVICESI
DEPUTY CITY CLERK .
APPROVED AS TO CONTENT:
STEVEN ADAMS, CITY MANAGER
APPROVED AS TO FORM:
TIMOTHY J. CARMEL, CITY ATTORNEY
EXHIBIT "A"
. CONDITIONS OF APPROVAL
VIEWSHED REVIEW CASE NO. 03-004
STEVE ACCORNERO
295 NORTH ELM STREET
Conditions of Approval
1. The applicant shall ascertain and comply with all State, County and
City requirements as are applicable to this project.
2. . -Development shall occur in substantial conformance with the plans on
file in the Community Development Department office.
3. Development shall conform to the Single Family (SF) zoning
requirements unless otherwise approved.
4. The applicant shall agree to defend at his/her sole expense any action
brought against the City, its agents, officers, or employees because of
the issuance of said approval, or in the alternative, to relinquish such
approval. The applicant shall reimburse the City, its agents, officers, or
employees, for any court costs and attorney's fee's which the City, its
agents, officers or employees may be required by a court to pay as a
result of such action. The City may, at its sole discretion, participate at
its own expense in the defense of any such action but' such
participation shall not relieve applicant' of his/her obligations under this
condition.
5. That the applicant shall comply with all criteria and conditions of
approval prior to completion and occupancy of the primary residence,
before obtaining the building permit for the subject second story
addition.
6. All garage spaces shall be made available for automobile parking and
any other vehicle (boat, RV, trailer) shall be stored .off site. Incidental
storage shall not displace use of garage for daily parking.
.
8...
MEMORANDUM
TO: CITY COUNCIL
FROM: ~I\t. ROB STRONG, COMMUNITY DEVELOPMENT DIRECTOR
BY: r- ANDREA KOCH, PLANNING INTERN At::.
SUBJECT: AUTHORIZATION TO REFUND APPLICATION FEES FOR WATERSHED
EDUCATION FAIR AND CREEK CLEAN-UP DAY
DATE: NOVEMBER 11, 2003
RECOMMENDATION:
It is recommended that the City Council approve the request from Central Coast Salmon
Enhancement, Inc. (Attachment 1) to refund the fee for Temporary Use Permit 03-023.
FUNDING:
A fee refund will cost the City $110.00.
DISCUSSION:
Temporary Use Permit 03-023 was issued to Central Coast Salmon Enhancement, Inc. to
conduct a watershed education fair and creek clean-up day on October 11, 2003.
Central Coast Salmon Enhancement, Inc. has requested a refund for the full amount of
the Temporary Use Permit application fee, $110.00. Staff has reviewed the request and
found that the activity meets the criteria for a fee waiver adopted by the City Council on
September 25, 2001.
AL TERNA TIVES:
The following alternatives are presented for the Council's consideration:
- Refund the fee;
- Do not refund the fee; or
- Provide direction to staff.
Attachments:
1. Request for refund from applicant
S:\COMMUNITY _DEVELOPMENT\PROJECTS\TUP\03-023_Salmon_Enhancemerit\TUP _03-023_ CC_RPT.doc
~---,-----
..
, .
.r ".'-J4
Attachment 1
CENTRALCOAST..SALMO.N ,~NHANCEMJ:~T,.lNC.
. ." '- '" ,:,'- .' ~
.'., ,. ,
'. Fis.hfor:c,ve'YOQ8
, . ..
OctDber 14, 2003
Attn:Ryan ,FDster . ,:','
. ' .
Assist~nt Planner "-
City CDunqi/Members . .
P.O. BDX~50 .
ArrDYD Grande, cA 93421
Dear: CDuncil Me1n!Jers ' .
--
On OctDber 11, 2003,Central Coost SalmQnEnhancementheldtheSj~th Annual ArrcJ'yo _Grande Creek
CelebratiDn &cle,iIitUpot N~ison Streetpar/c.This year;ivo,lunteers()falI ages caTn:e~tand-spe"tiheir -
mDrnings pulling trashlrD'" the creek.- A~, entire ~o.yard !DII~ffdumpster w~ filled with items ranging
frDm couches and chatr,s to' tires, wodd pqlIet~, and litter. -In afiuther effort, to keep our creeks clean,
cDmmunity vDlunteers, with the assista"ce:olciiy'strijj;st~Cti~iJ. stDrm-drajnSwfth' the,waming: "No,
Dumping, Drains If), Cree1i.~~' . .... . .J",
'.' -,
The ArrDyoG~qndeCreelc CelebratiQn'&;Cle~ Upis aCDmmuni,y imp;'ov,ement ive~t- 'Tras.h and litter
remDvallceeps Dur creeks beautiful,'.is. belJeficial fDr creaiuresthilt makethecre~ktheirhorne, improves
water quality and r~duces,the n$koljI()iXJj~g. TJus eve.nt raisespublicQ)Vareness (jf our.IOfdlcreeks,
and gives peDple an DPpOrtunity to bepartofthesDlutiDn. ,... : , .', .~' .
. . -".
. - - . .
,-~.
., .
In Drderto hDld host this ~ent at }felsDn Park, Central CDastSai~nEnhiui~ment appliedfDr, a
Te~rari US!? Penni( with the City Df ArrDYpGrande,' antia feeof$150 w~paid. ...C~ntral CDast
SalmDn Enhilncement is requesting a rl!.fund Dfthispermitfee: " :' . , ,;:;"<.:,~>' " . .'. .
" ..... ....,' .... .'. ...,;"',..':, ,:
Central Coast SalmDn EnhDncemen( (CCSE) iSQ 5()lC~}{()n-profit orgaiiiztltioil';t?Ut;JtlfJD is' # 77-: .' -
0079896 CCSEhas 0 tDtal Df224 inem!Jers~ of that number 165~re fromsm,L7,lis'Q~;$pq County and 68
Dfthosemembers'orefrDmthe.Fwe.Citiesaiea. . _", '.' .., ....... .'. ..... ;"',:. ',' ...
MDre thdn 50.% Dfthe,donated dmDzintfrDm thise.Vent go~s dire,ctlyiD the.improv,e"'.into[the-E'ive Cities
area.
. PO Box 277. Avila Beach, cA 93424.
Phone: 805-473-8221 Fax: 805-473-8161' .~. c.., E~all: Salmonfix@aol.com
B.a.
MEMORANDUM
TO: CITY COUNCIL
FROM: ~~'KELL Y HEFFERNON, ACTING COMMUNITY DEVELOPMENT
DIRECTOR
BY: 3.5JIM BERGMAN, ASSISTANT PLANNER
SUBJECT: CONSIDERATION OF APPEAL OF AMENDED CONDITIONAL USE
PERMIT CASE NO. 03-004; 1220 FARROLL AVENUE
DATE: NOVEMBER 11, 2003
RECOMMENDATION:
It is recommended the City Council adopt a Resolution denying the appeal and requiring
the placement of two fire hydrants on the subject property.
FUNDING:
No fiscal impact.
DISCUSSION:
On August 19, 2003, the Planning Commission held a public hearing to consider
Amended Conditional Use Permit 03-004, allowing for the continuation of portable
classrooms at Coastal Christian School. Conditions of approval included the placing of
two fire hydrants in an effort to better protect lives and property at the location. On
October 28, 2003, the City Council held a public hearing to consider the appeal of
Amended Conditional Use Permit 03-004 and specifically the applicanfs objection to the
requirement for placement of two fire hydrants. At that meeting, the Council instructed
staff to return with additional information regarding:
I. Specific citations to the relevant Fire Code provisions;
II. Determination if one hydrant could be installed in a central location that would
achieve compliance with Fire Code provisions;
III. Firefighting strategies for this property;
IV. Capabilities and challenges; and
V. An explanation of what has changed since approval of the original Conditional
Use Permit to warrant the conditions requiring the placement of two fire
hydrants.
~--------- ----
CITY COUNCIL
APPROVAL OF AMENDED CUP CASE NO. 03-004; 1220 FARROLL AVENUE
NOVEMBER 11, 2003
PAGE 2 OF 4
I. Section 903.2 of the California Fire Code states: 'When any portion of the
facility or building protected is in excess of 150 feet (45 720mm) from a water
supply on a public street, as measured by an approved route around the
exterior of the facility or building, on-site fire hydrants and mains capable of
supplying the required fire flow shall be provided when required by the
Chief." This statement validates Chief Fibich's request to place a hydrant
close to the classrooms since they are located 450 feet from the closest on
street hydrant.
II. Appendix 111-8 of the 2001 California Fire Code (attached) indicates that fire
hydrants should be placed every 300 feet in order to supply the needed fire-
flow requirements for the structures located at 1220 Farroll Avenue. Exhibits 1
through 6 indicate that the Fire Code supports the Fire Chiefs request for two
fire hydrants.
. Exhibit 1 illustrates the current placement of fire hydrants in the immediate
area of Coastal Christian School. The pattern presented indicates that fire
hydrants are generally placed every 300 feet (a radius of 150 feet around
each hydrant). Also clearly indicated is the lack of fire hydrants associated
with all the buildings on the property that house the Coastal Christian
School.
. Exhibit 2 illustrates the placement of fire hydrants as recommended by staff.
This recommendation is conducive with the pattern of fire hydrants in the
immediate area and complies with both sections of the California Fire
Code. In addition, this arrangement can help supply water to the higher
density housing complex located directly across from Coastal Christian
School.
. Exhibits 3, 4, 5, and 6 present compromise placements of single hydrants
between the church and the school campus. Although these options may
improve potential firefighting operations, none are compliant with Section
903.2 and Appendix III-B of the California Fire Code because in each
situation either some Coastal Christian School classrooms or major
sections of the church are further than 150 feet from a hydrant or hydrants
are not placed every 300 feet.
III. A typical initial firefighting attack on this property would consist of the following:
a. The engine would stop at the fire hydrant located at Farroll Avenue and
Carmella Drive or Farroll Avenue and Golden West Place.
b. The firefighter (one of the three firefighting personnel normally staffing the
engine) would exit the engine and pull hose off the engine and wrap it
around the hydrant. The engine would drive to the fire scene, dropping hose
along the way.
!
I
------,---~"------- _J
CITY COUNCIL
APPROVAL OF AMENDED CUP CASE NO. 03-004; 1220 FARROLL AVENUE
NOVEMBER 11, 2003
PAGE 3 OF 4
c. The firefighter would connect the hose to the hydrant but cannot "charge"
(turn on the water) the hose until she/he is sure that the engineer has
reached the fire, parked the engine, and has secured the loose end of the
hose. At this point, two time-wasting delays can occur, (1) the firefighter can
charge the hose before the engineer secures the hose and (2) the firefighter
might wait longer than necessary to turn on the water. Two variables that
can increase the chances of one of these delays are distance and line of
sight. The further the two personnel are apart, the harder it is to
communicate audibly and if the two personnel are out of sight of each other,
hand signals are worthless. The situation is significantly worse if these two
variables are combined, as in this situation.
d. Once the hose is charged the firefighter can run to the fire scene. The
shorter the distance the firefighter has to travel in full turnout gear and Self
Contained Breathing Apparatus (SCBA), the more effective she/he can be.
e. While the firefighter and engineer are working to establish a water supply
from a hydrant, there is only one firefighter (the Captain) to perform search
and rescue functions.
f. If fire were to spread to multiple structures on the property, or if the highly
combustible conifer trees were to become involved, multiple sources for
water supply (hydrants) would be necessary to provide adequate fire flow
for this property.
IV. Capabilities and challenges associated with the availability and choice of fire
hydrants includes wind direction and strength, the spreading of fire to nearby
structures, water supply redundancy, and effective ingress and egress of a fire
scene. Closely associated with the scenario above is the fact that a standard fire
engine has the ability to pump approximately 250 gallons of water per minute
through one hose line and has a usual storage capacity of 500 gallons. This gives
the initial firefighter approximately 2 minutes of water for her/his rescue operation
before a water source must be found and utilized.
Two of the most critical challenges that are associated with this property are the
life safety hazards associated with the presence of a large number of school age
children (age 5 and upward), and the use of older wooden buildings designed for
temporary use that are now showing acute signs of aging and deterioration.
V. The California Fire Code has not changed since 1985 in its' water supply
requirements, nor has the occupancy or use of the property substantially
increased. What has changed is the length of time Coastal Christian School will
continue to operate in its present location (up to 5 years). The operation of
temporary modular classrooms at Coastal Christian School has always been
predicated on a short horizon of time, which was always unknown but often
perceived to be "just around the corner." The longer the current situation exists,
the greater the risk of a catastrophic event. Due to the uncertainty of this variable,
staff, the Planning Commission, and now the City Council has been placed in the
-- -----
CITY COUNCIL
APPROVAL OF AMENDED CUP CASE NO. 03-004; 1220 FARROLL AVENUE
NOVEMBER 11, 2003
PAGE 4 OF 4
difficult position of balancing the protection of life and property through the
imposition of reasonable health and safety related conditions against the cost of
implementing those conditions. Staff, at the direction of the Fire Chief, has asked
for (1) the placement of a hydrant at Farroll Avenue, given the two closest
hydrants are 500 feet apart and the property houses a church facility, a school,
parsonage residence, and storage buildings, and (2) the placement of a hydrant
inside the property, given the 450 foot distance between the school campus and
the nearest hydrant located on a public street. Due to these facts, Section 903.2
of the California Fire Code is very clear and a compromise is difficult to develop.
AL TERNA TIVES:
The following alternatives are presented for Council consideration:
- Adopt the attached resolution denying the applicant's appeal of condition of
approval No. 8 of "Exhibit A," and approving Amended Conditional Use Permit 03-
004 as presented;
- Direct staff to draft an alternate resolution and return at a specified date;
- Provide direction to staff.
Attachments:
1. Appendix III.B ofthe 2001 California Fire Code.
2. Planning Commission staff report and Resolution for Amended
Conditional Use Permit 03-004.
3. Minutes of Planning Commission meeting of August 19, 2003.
4. Applicant's appeal letter and application.
5. Memo from Terry Fibich, Director of Building and Fire.
(Remove on final)
S:\COMMUNITY _DEVELOPMENT\CITY _COUNCIL\2003\11-11-03\CC sr Coastal Chrlstian.doc
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RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE DENYING THE APPEAL OF THE
PLANNING COMMISSION'S APPROVAL OF AMENDED
CONDITIONAL USE PERMIT 03-004 A~ SUBMITTED
WHEREAS, the applicant has filed an application for Amended Conditional Use Permit
03-004 to continue to temporarily operate a school and utilize portable buildings; and
WHEREAS, the Planning Commission of the City of Arroyo Grande considered Amended
Conditional Use Permit 03-004 at a duly noticed public hearing on August 19, 2003 in
accordance with the Development Code of the City of Arroyo Grande; and
- .
WHEREAS, the Planning Commission found that in order to better protect lives and
property associated with the continuation of temporary classrooms, the applicant must
provide two fire hydrants; one located in fro':"'t of the subject property and the other
within the boundaries of the property between the existing chapel and sanctuary and
the school campus; and
WHEREAS, the City Council finds, after due study, deliberation and public hearing, based
on all evidence presented, the following circumstances exist:
A. That the closest fire hydrant to Coastal Christian School is located on the comer
of Farroll Avenue and Golden West Place and is approximately 460 feet from the
furthest classroom.
B. Due to the recessed layout of the Coastal Christian School Campus, both a fire
hydrant located on Farroll Avenue and another located in the interior of the
property are needed to adequately protect lives and property associated with the
conditional use.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo
Grande hereby denies the appeal and approves Amended Conditional Use Permit 03-004
pursuant to the above findings and sUbject to the conditions of approval shown in Exhibit
"A" attached hereto and incorporated herein.
On motion by Council Member , seconded by Council Member ,
and by the following roll call vote to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was adopted this 11 th day of November, 2003.
-,._---~ .-------.,'-
RESOLUTION NO.
PAGE 2
TONY M. FERRARA, MAYOR
ATTEST:
, KELLY WETMORE, DIRECTOR OF ADMINISTRATIVE SERVICESI
DEPOTY CITY CLERK .
APPROVED AS TO CONTENT:
STEVEN ADAMS, CITY MANAGER
APPROVED AS TO FORM:
TIMOTHY J. CARMEL, CITY ATTORNEY
-- --- - ----- "--- --~--
RESOLUTION NO.
PAGE30F4
EXHIBIT II A"
CONDITIONS OF APPROVAL
AMENDED CONDITIONAL USE PERMIT 03-004
1220 FARROlL AVENUE
COMMUNITY DEVELOPMENT DEPARTMENT
GENERAL CONDITIONS:
1. The applicant shall ascertain and comply with all Federal, State, County and
City requirements as are applicable to this project.
2. The applicant shall comply with all conditions of approval fgr Amended
Conditional Use Permit 03-005, Amended Conditional Use Permit 89-459 and
the Conditional Use Permit 89-459.
3. This application shall automatically expire on August 1 9, 2004 unless it can be
shown that all conditions of approval are satisfied upon an inspection to be
conducted by the City's Building and Fire Department.
4. The applicant must reapply for a yearly time extension of the Conditional Use
Permit starting August 1 9, 2004.
5. The applicant will disclose the number of enrolled students on a yearly basis.
6. The applicant shall agree to defend at his/her sole expense any action brought
against the City, its present or former agents, officers, or employees because
of the issuance of said approval, or in anyway relating to the implementation
thereof, or in the alternative, to relinquish such approval. The applicant shall
reimburse the City, its agents, officers, or employees, for any court costs and
attorney's fee's which the City, its agents, officers or employees may be
required by a court to pay as a result of such action. The City may, at its sole
discretion, participate at its own expense in the defense of any such action but
such participation shall not relieve applicant of his/her obligations under this
condition.
OCCUPANCY AND ACCESS:
7. The project shall comply with state requirements for occupancy limits and
accessibility issues.
REQUIRED IMPROVEMENTS:
,
8. The applicant shall install two fire hydrants, one on the street directly in front
of the subject property and one located inside the property between the
I existing chapel and sanctuary and the school campus or similar installations to
r
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RESOLUTION NO.
PAGE 4 OF 4
the satisfaction of the Fire Chief.
PERFORMANCE BOND:
9. The applicant shall post a performance bond within ten (1 0) days of the date
of approval. Both fire hydrants are to be installed within sixty (60) days of the
date of approval.
BUILDING AND FIRE DEPARTMENT CONDITIONS
10. The project shall comply with the most recent editions of the California State
Fire and Building Codes and the Uniform Building and Fire Codes ~s adopted by
the City of Arroyo Grande.
PUBLIC WORKS DEPARTMENT CONDIT.ONS
GENERAL IMPROVEMENT REQUIREMENTS:
11. The applicant shall pay all applicable City fees at the time they are due.
12. The developer shall be responsible during construction for cleaning city
streets, curbs, gutters aDd sidewalks of dirt tracked from the project site.
The flushing of dirt or debris to storm drain or sanitary sewer facilities shall
no be permitted. The cleaning shall be done after each day's work or as
directed by the Director of Public Works.
13. The applicant shall be responsible for obtaining an encroachment permit for
all work within a public right of way.
--------
-
2001 CAUFORNIA ARE CODE APPENDIX 1/1-8
ATTACHMENT 1
FIRE HYDRANT LOCATIONS AND DISTRIBUTION
. [For SFM] State APPENDIX III-B
(See UFC Section 903.4.2)
SECTION 1 - SCOPE SECTION 4 - CONSIDERATION OF EXISTING FIRE
Fire hydrants shall be provided in accordance with Appendix HYDRANTS
. ill-B for the protection of buildings, or portions of buildings, here- Existing fire hydrants on public streets are allowed to be consid- "-
after constructed. ered as available. Existing fire hydrants on adjacent properties
shall not be considered available unless fire apparatus access
SECTION 2 - LOCATION roads extend between properties and easements are established to
prevent obstruction of such roads.
Fire hydrants shall be provided along required fire apparatus ac-
. cess roads and adjacent public streets. SECTiON 5 - DISTRIBUTION OF FIRE HYDRANTS
The average spacing betWeen fire hydrants shall not exceed that
SECTION 3 - NUMBER OF FIRE HYDRANTS listed in Table A-ill-B-I.
The minimum number of fire hydrants available to a building shall EXCEPTION: The chief may accept a deficiency of up to 10 per-
not be less than that listed in Table A-ill-B-I. The number of fire cent where existing fire hydrants provide all or a portion of the required
hydrants available to a complex or subdivision shall not be less fire hydrant service.
than that determined by spacing requirements listed in Table Regardless of the average spacing, fire hydrants shall be located
A-ill-B-l when applied to fire apparatus access roads and perime- such that all points on streets and access roads adjacent to a build-
ter public streets from which fire operations could be conducted. ing are within the distances listed in Table A-ill-B-I.
TABLE A-III-B-1-NUMBER AND DISTRIBUTION OF FIRE HYDRANTS
~ Dl8TANCE FfIOM
. 'AVERAGE SPACING BETWEEN ANY POINT 011 tmI8ET Of! ROAD
FIRE-FLOW REQUIREMENT (gpm) HYDRANTSI,2,1 (r.t) PJIIOIITAGI! 10 A tfYDRANT4
x 3.711 for LhnIn. MINIMUM NO. OF HYDRANTS x 3CI4.8 for mm
1,750 or less 1 500 2SO
2,000-2,2SO 2 450 225
2,500 3 450 225
3,000 3 400 225
3,500-4,000 4 350 210
4,500-5,000 5 300 180
5,500 6 300 ISO
6,000 6 250 150
6,500-7,000 7 250 ISO
7.soo or more 8 or moreS 200 120
1 Reduce by 100 feet (30 480 mm) for dead-end streets or roads.
2where streets are provided with median dividers which can be crossed by firefighters pulling hose lines, or arterial streets are provided with four or more traffic
lanes and have a traffic count of more than 30,000 vehicles per day, hydrant spacing shall average 500 feet (152.4m) on each side of the street ~d be arranged on an
alternating basis up to a fire-flow requirement of 7,000 gallons per minute (26495 Umin.) and 400 feet (122 m) for higher fire..flow requuements.
3Wbere new water mains are extended along streets where hydrants are not needed for protection of struetuIes or similar fire problems, fire hydrants shall be pr0-
vided at spacing not to exceed 1,000 feet (305 m) to provide for transportation hazards.
. 4Reduce by 50 feet (15 240 mm) for dead-end streets or roads.
sOne hydrant for each 1,000 gallons per minute (3785 Umin.) or fraction thereof.
.
.
1-321
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~_ _~ IT ACHMENT 2
CITY OF ARROYO GRANDE
ARCHITECTURAL REVIEW COMMITTEE
HEARING DATE: Tuesday, August 19, 2003
AGENDA ITEM: n.D
CASE NUMBER: Amended Conditional Use Permit 03-004 ,
ApPLICANT: Coastal Christian School
REPRESENTATIVE: Lance Tullis
PROJECT LOCATION: 1220 Farroll Avenue
PROJECT DESCRIPTION: Amendment of Conditional Use Permit to allow for
the continuation of portable classrooms.
PROJECT PLANNER: Jim Bergman, Planning Intern
LOCATION MAP
----
--'-~--
BACKGROUND
Coastal Christian School has been operating within the City of Arroyo Grande since
August of 1989. However, for the past ten years the school has be in the process of
permanently relocating to a site in the City of Pismo Beach but has been encountering
delays resulting from larger annexation issues. Due to this uncertainty of location,
Coastal Christian School has been in front of the Planning Commission several times.
Below is a brief history of their Conditional Use Permit: '
. August 1989 - The Planning Commission approved the original CUP No. 89-
459 which allowed for the establishment of a private elementary school in an
existing building.
. July 1996 - The Planning Commission approved Amendment No. 1 to the
Conditional Use Permit, which allowed for'the placement of three temporary
modular buildings with a total building area of 2,880 square feet. A condition
of the approval states "However. the temporary modular units shell not be
permitted after July 2001. After this date. the applicant may apDly for the
necessary permits to replace the temporary buildinas with more permanent
facilities. "
. February 17, 1998 - The. Planning Commission reviewed the Conditional Use
Permit after a citizen's complaint about privacy issues.
. March 3, 2000 - Coastal Christian School applied for an amendment to its
Conditional Use' Permit in an effort to install four (4) - 24' x 40' modular
classrooms and one (1) -20' x 20' modular bathroom. The new buildings
would have allowed for a total of 383 students.
. April 4, 2000 - Coastal Christian School met with the SAC regarding their
propo~ed amendment.
. June 29, 2000 - In response to the input from staff at the April SAC meeting,
Coastal Christian School changed its amendment requesting only one (1) 24'
x 40' modular building, the raising of enrollment to 214 students, a time
extension from 2001 to 2003, and requested an exception from
undergrounding existing utilities. At that time Coastal Christian School stated
that they expected to be at a new location in the City of Pismo Beach within
three years.
. January 24, 2001 Coastal Christian School rescinded its Conditional Use
Permit Amendment application and received a refund for half of the fees paid.
. July 2001 - The Conditional Use Permit for the placement of temporary
buildings expired.
Page 2 of 3
. April 14, 2003 - Code Enforcement Officer, David Crockett sent.a letter
notifying Coastal Christian School that their Conditional Use Permit had
expired.
. May 8, 2003 - Coastal Christian School submitted an application to amend its
Conditional Use Permit by seeking a time extension for the operation of the
temporary buildings.
DISCUSSION ,
The Pismo Beach annexation in which property owned by Coastal Christian School is
included is underway and has been making recent progress including successfully
gaining the recommendation of the Pismo Beach Planning Commission. In addition, the
issue is being discussed at tonight'S~gust 19, 2003) Pismo Beach City Council
meeting. Even with this substantial p" gress, it is staffs opinion that the Pismo Beach
annexation as well as the relocation of Coastal Christian School will take a minimum of
two to three years to complete.
The Staff Advisory Committee (SAC) reviewed the proposed amendment to the
Conditional Use Permit at its May 5, 2003 meeting. The safety issue of the scarcity of
fire hydrants near the site was the main concern of the Committee and they
recommended that two fire hydrants be placed in order to assist in the protection of life
and property. The closest fire hydrant is located on the corner of Farroll Avenue and
Golden West -Street and is appro~imately 460 feet from the furthest classroom. It was
recommended by the Fire Chief that one of the hydrants be placed at the street and due
to the depth of the subject parcel, one hydrant should be located inside the property
between the existing chapel and sanctuary and the school campus. Staff is aware of the
substantial cost (approximately $15,000) involved in placing two hydrants at the site but
believes that the intensity of the land use and the potential for continued operation
justifies the request.
The SAC also discussed and recommended annual reviews of the Conditional Use
Permit instead ~f the applicant proposed, extension until 2007.
RECOMMENDATION
Staff recommends that the Planning Commission adopt the attached Resolution,
approving Amended Conditional Use Permit 03-004.
Attachments:
Resolution approving ACUP 03-004
1. Site plans depicting current use
2. SAC notes from May 28, 2003
3. Previous Resolutions and Conditions of Approval
Page 3 of 3
RESOLUTION NO. 03-1898
A RESOLUTION OF THE PLANNING COMMISSION OF THE
CITY OF ARROYO GRANDE APPROVING AMENDED
CONDITIONAL USE PERMIT 03-004 LOCATED AT 1220
FARROLL AVENUE, APPLIED FOR BY COASTAL
CHRISTIAN SCHOOL
WHEREAS, the applicant has filed Amended Conditional Use Permit 03-004 to
continue to temporarily operate a school and utilize portable buildings; and
WHEREAS, the Planning Commission of the City of Arroyo Grande has considered
Amended Conditional Use Permit 03-004 at a public hearing on August 19, 2003 in
accordance with the Development Code of the City of Arroyo Grande; and
WHEREAS, the Planning Commission has found that this project is consistent with
the General Plan and the Development Code; and
WHEREAS, the Planning Commission has reviewed this project incompliance with the
California Environmental Quality Act (CEQA), the State CEQA Guidelines; and the Arroyo
Grande Rules and Procedures for Implementation of CEQA and has determined that the
proposed project can utilize the current negative declaration; and
WHEREAS, the Planning Commission finds, after due study, deliberation and public
hearing, the following circumstances exist:
Conditional Use Permit Findings:
1. The proposed use is permitted within the Public Facilities district pursuant to
the provisions of Section 16.44.0:40 of the Development Code, and complies
with all applica,ble provisions of the Development Code, the goals and
objectives of the Arroyo Grande General Plan,' and the development policies
and standards of the City.
2. As conditioned, the proposed use will not impair the integrity and character of
the district in which it is to be established or located.
3. The site is suitable for the type and intensity of use that is proposed.
4. There are adequate provisions for water, sanitation, and public utilities and
services to ensure the pUblic health and safety.
5. The proposed use will not be detrimental to the public health, safety, or
.-..0 welfare, or materially injurious to properties and improvements in the vicinity
because the proposed project would not create any adverse environmental
impacts.
I
---~--.-------- ----~------
---~
RESOLUTION NO. 03-1898
ACUP 03-004
PAGE 2 OF 4
I NOW, THEREFORE, BE IT RESOLVED that the Planning Commission of the City of
Arroyo Grande hereby approves Amended Conditional Use Permit 0~-004, with the
above findings and subject to the conditions as set forth in Exhibit "A", attached
hereto and incorporated herein by this reference.
On motion by Commissioner Keen, seconded by Commissioner Arnold, and by the
following roll call vote, to wit:
AYES: Commissioners Keen, Arnold, Brown, Fowler and Chair Guthrie
NOES: None
ABSENT: None
the foregoing Resolution was adopted this 19th day of August, 2003.
r ATTEST:
r ~~-~
,
!
NREARDON-SMITH,
i COMMISSION CLERK
;
!
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i ROB STRONG,
COMMUNITY DEVELO ENT DIRECTOR
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AGENDA - SAC MEETING ..
WEDNESDAY - MAY 28, 2003
.
Lot Line Adjustment 03 . Applicant - Carol Hoon; Location - 621 Eman. Staff Contact
- Jim Bergman.
Proposal - Lot line Adjustment betwe two parcels for better utilization of the land.
Jim Bergman
. Proposed lot line change of 90 degre
Rob Strong
. Will need easement along creek
. Need to depict easement on map and legal de ription: city will provide document ,
. No issues with the adjustment, should be easy a
Carol Hoon '
. No plans to build on new lot
. Prefer to go to 6/17 Planning Commission
G.
Amended Conditional Use Permit 03-004; Applicant - Coa~tal Christian School; Location
-1220 Farroll Road. Staff contact - Jim Bergman.
Proposal - CUP Amendment to allow for the use of temporary buildings until September '
30. 2007. Staff Contact: Jim Bergman
. Existing temporary modules are being used, but the school does not want to build
infrastructure on a lot they do not own.
. Currently trying to annex to Pismo
Rob Strong
. Possibly modify requests so there is an annual renewal
. Fire access, is an issue and needs to be improved ,
. A new hydrant is necessary if the school wants to remain at this location
. Can be processed at 7/1 Planning Commission
H.
Temporary e Permit 03-010; Applicant - Katcho AchadJian; Representative -Zach
Moran; Locatl -1294 Grand Avenue. Staff contact - Kristin Krasnove.
Proposal - Soil d groundwater remediation system to mitigate contamination
associated with the Sl
. Discussed various tions for placement of the system, but location of waste oil tank
and concerns with tra I irculation prohibit any other placement
. Noise issues must be con
Rob
. Should pursue possible permane enclosure for trash receptacles
Zach Moran
. Building roof over compressor, and nOI
Rob
. Must enclose system until it complies, and w will have someone check it
. Should contact neighbors
. Building permit can be used ater 10 day appeal pe .
. Can build accessory structure before that point
. Performance standard in conditions of approval
I.
-
RESOLUTION NO. 96.1568
A RESOLUTION OF THE PLANNING COMMISSION OF .
TIlE CITY OF ARROYO GRANDE ADOPTING A
NEGATIVE DECLARATION, INSTRUCTING THE
SECRETARY TO FILE A NOTICE OF DETERMINATION,
AND APPROVING CONDITIONAL USEIJERMIT CASE NO.
89-459,S AMENDMENT HI, APPLIED FOR BY COASTAL
CHRISTIAN SCHOOL, AT 1220 FARROLL AVENUE
I .
WHEREAS, the Plimning Commission of the City of Arroyo Grande has considered
- Conditional Use Permit Case No. 89-459, Amendment-HI, filed by Coastal Christian School,
to add three modular buildings to serve as kindergarten and high school classrooms; and
WHEREAS, the Planning Commission has held a public hearing on this application in
accordance with City Code; and
WHEREAS, the Planning Commission has found that this project is consistent will1 the
,General Plan and the environmental documents associated therewith; and
WHEREAS, the Planning Commission has reviewed the draft negative declaration under
the provisions of the California Environmental Quality Act (CEQA), the State CEQA Guidelines,
and the Arroyo Grande Rules and Procedures for Implementation to CEQA; and
0
.
WHEREAS, the Planning Commission fin~s after due study, deliberation and public
hearing, the following circumstances exist:
Conditional Usc Pel'mil Findings:
1. 'rhe proposed use is permitted within the su~ject district pursuant to the provisions of
. Section 9-03.050 of the Development Code, and complies -with all applicable provisions
I of the Development Code, the goals and objectives of the Arroyo Grande General Plan,
and the development policies and standards of the City. - .
2. The proposed use will not impair tlte integrity and character or the district in which it
is to be established or located. ,-
The site is suitable for the type and intensity of use or development that is proposed. .'-
3.
4. There are adequate provisions for water, sanitation, and public utilities and services to .
cnsure the public health and safely.
5. The proposed use will not be detrimental to the public health, safety, or welfare, or
materially injurious to properties and improvements in the vicinity.
_ Dcpaltmenl of FIsh and Gamc Requb'cd Findings of Exemption:
-I. The City of Arroyo Grande has prepared an initial study pursuant to Section 15063 of
the Guidelines of the California Environmental Quality Act (CEQA), for Conditional Use
Permit Case No. 89-459, Amendment HI.
I
.... f
-------------- n
Resolution No. 96-1568
Conditionnl Use l)em1it Cns(! No. 89-459, Amendment #1
Coastal Christian School, 1220 Faa'l'oll A venue
July 2, 1996 ,
Page 2
2. Based on the initial study, a negative declaration drafted for review by the public and
review and approval by the Planning Commission.
3. After holding a public hearing pursuant to State and City Codes, and considering the
record as a whole the Planning Commission adopted the negative declaration and fQund i
that there is no substantial evidence of any significant adverse effect, either individually I
or cumulatively on wildlife resources as defined by Section 711.2 of the Fish and Game
Code or on U1e habitat upon which the wildlife depends as a result of development of this
project. .
NOW, THEREFORE, BE IT RESOLVED that the Planning Commission of the City of
Arroyo Grande hereby adopts a negative declaration, instnacts the Secretary to file a Notice of
Determination, and approves Conditional Use Permit Case No. 89-459, Amendment #1 wiU1 the
above findings and subject to the conditions as set forth in Attachment "A., attached hereto and
incorporated herein by this reference.
On motion by Commissioner Deviny, seconded by Commissio!1er Tappan, and by U1e
following roll call vote, to wit:
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AYES: ,Commissioners Deviny, tappan, Beck, Lubin and Keen \"i
NOES: None
ABSENT: None
the foregoing Resolution was adopted' this 2nd day cjf July, 1996.
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A TO CONTENT:
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ll. ~~~t
rto-Blanck, Community Development Director
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RESOLUTION NO. 2334
A RESOLUTION OF TUE CITY COUNCIL OF TOE CITY
OF ARROYO GRANDE ArrROVING CONDITIONAL USE I'ERMIT
CASE HO. 89-"59. API'LIED FOR BY COASTAL CIIRISTIAH
SCIlOOl.. 1220 "ARROLL AVF.HUE. FOR ^ rIUVATF. SCIlOOI.
IN 'ruE 1-3 ZONr.. AND ADOI'TING A HEGAT!Vr. Df:CLARATIOH.
YIIEREAS. the City Council of the City of Arroyo Grande has considered an
application by Coastal Christian School for a priv~te elementary school in the
R-3, HUltipleFamily Residential zone at 1220 Farroll Avenue: and
VnEREAS, the City Council has found that this project is consistent with
the General Plan and environmental documents associated therewith: and "-
VIlr.RF.AS, the City' Council finds that there are no adverso cnvironDlentill
impactn and adopts a Neqative Declaration: and
Vnr.REAS, the City Council instructs the City Clerk to file a Notice of
Determination: and
VIIEREAS, tbe Planninq Commission of the City of Arroyo Grande has held a
pUblic hearinq on the project and bas recommended approval of the project to tbe
City Council: and
VIIF.RF.AS. the City Council finds.- after due study, deliberation and public
hearinq. the followinq circu~stances exist:
1. Tbe proposed use is conoistent with the General Plan's statement and
intent and does not appear to hamper i~plementation of the future
ueneral plan.
2. The proposed use is consistent with the zoninq desiqnation.
3. The site is adequate in shape and size (or the proposed use, as it
can lIeet all of the parkinq requirements.
4. The site does have adequate aecess. per the:conditions of approval.
5. The proposed uoe will not have an adverse effect on the use of
lIurroundinq property because appropriate conditions have been
incorporated into the resolution of apProval.
6. The dedqn and layout of the proposed use is suitable because
; adequate provisions for setbacks, access an circulation havo been
incorporated into the project desiqn.
7. The proposed use is not likely to cause .ub.tantial and considerable
. damage to the natural environment includinq fish. wildlife or their
habitat and. therefore. .taff has prepared a Neqative Declaration
I (or adoption.
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HOV, TDEREFORE, BE IT RESOLVED that the City Council o( the ci ty of Arroyo,
. Grande hereby approves said Conditional Use Permit. subject to appropriate
J standard conditions of the city of Arroyo Grande, and the followinq additional
conditions!
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Planning Departaent
1. -Development shall occur in substantial conforMance with the plana . "
approved by the City Council on August 22, 1989 and Harked r~hibit
"A'. .
2. Existing fencing ohall be removed and a nev board or chain link fence
; or concrete block wall shall be constructed along the easterly
property line prior to occupancy.
. J. The parking lot shall be striped and bumper blocks installed as shown
, on Exhibit "A" prior to occupancy.
4. A trash enclosure shall be constructed at a site approved by the
rIann!nq Director. prior to occupancy.
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Ncso!ution lJJ4 139
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Gcncral Condition
18. The applicant shall asc~rtain and, co.ply vith the require.ents or
all state. county and local agencies as are applicable to this
project.
19. This Conditional Use per.it shall expire on June 30. 1993 unless the
permit is revoked by the Planning Co_ladoll at all earUer date due
to pUblic or safety concerns.
20. ,Enrolblent for ,Coastal Christian ,School JPre-K~hrou9h6th grade)
:, 'shall not exceed in students in' any:oneschool'year;": '
On .otion by Council Kember Olsen . seconded by Council Kember sm.i~ "-
and by the fOlloving roll call vote. to vit:
AYES: Council Members Olsen. Snith. Moots and Mayor Millis
HOES: None
ADSF.HT: Council MeJmer Dou9ftU
the foreqoinq R..olution vas adopted thh22ndday of J\ugust . 1989.
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~.1L.IS - -. .'. V
Mayor
ATnST: APPROVED AS TO rORM:
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NANCY A.DAV
City Clerk
I. tWCY 1\. D1\VIS. City Clerk of the City of 1\rroyo Grande. County
of San Luis Obispo. State of California, do hereby certify under penalty
of perjury that the foregoing Resolut;iai No. 23~4 is a true. full and
correct copy of said Resolution passed and adopted at a regular neeting
of' said Council on the 2200 day of ~st, 1989.
WiTNESS my hand and the Seal of the, City of 1\rroyo Grande affixed
thiR 31st day of August, 1989. ~
Gr. 71~a.~
st.
COh CITY CI..ERK' ,
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I mmDI'I<N K>. 89-1239
A RESJIm'I<N OF 'IHB PLANNIHJ ca.r.nSSI<N OF 'IHB
CI'IY 00 ARIDiO GWIE RHXM\I.H)OO APl!f.CNAL 00
aN>lTICNAL mE PEI.Id1T CASE ro. 89-459, APPLIFD
lOt Bf.~ amsrIAN fDIXL, 1220 FABRLL
AVENIJE, lOt A PRIVA'IE OCHXL IN 'IHB R-3 ttNE.
VtiBRP.AS, the Planning Cannission of the City of Arroyo Grande has
considered an application by CbastalChrlstian School for a private elementary
school In the R-3, Multiple Family Residential zone at 1220 Farroll Avenue; and
'NIImFAS, the Planning Cannission has found that this project Is
, consistent wi th the General Plan and envirormental docunents associated therewi th;
and
'NIImFAS, the Planning Ctmnission finds, after due study, deliberation
and public hearing, the,follow1ng circumstances exist:
1. The proposed use is consistent with the General Plan's statement
and intent.
2. The proposed use is consistent with the zoning designation.
3. The site is adequate in shape and size for the proposed use, as it
can meet all of the park,ing requirements.
4. The site does have adequate access, per the cOhdl tions of approval.
5. The proposed use ~ill not have an adverse effect on the use of
surroun~ing property ' because appropriate conditions have been
incorporated into the resolution of approval.
6. The design and layout of the proposed use is suitable. because
adequate provisions for setbac~s, access and circulation have been
incorporated into the project design.
'1. The proposed use Is not likely to cause substantial and
considerable damage to the natural environment including fish,
wIldlife or their habitat and, therefore, staff has prepared a
Negative~laration for adoption.
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KJV, .~, BE ITBP.:D.VEDthat thePlanningCannissionof the City
of Arroyo Grande hereby approves said CbndJ tional 'Use Permit, subject to
appropriate standard conditions of the City of Arroyo Grande, and the following
additional conditions I
Planning Department
1. Developnent shall occur in substantial conformance wI th the plans approved
by the Planning Cannls~lon on August lS, 1989 and Marked Exhlbl t "A".
2. Existing fencing shall be rerooved and a new board or chain link fence or
concrete block wall shall be constructed along the easterly property line
prior to occupancy.
3. The parking lot. shall be striped and bunper blocks installed as shOwn on
Exhibit "A" prior to occupancy.
4. A trash enclosure shall be constructed at a site approved by the Planning
Director, prior to occupancy.
5. All Improvements shown on ~Ibit "An shall be constructed prior to
occupancy.
6. Appropriate slgnage/streetstenclls shall be installed, to the
satisfaction of the Public Works Director, to direct traffic flow within
the parking lot, prior to,occupancy.
'1. This conditional use penuit shall be reviewed at the first Planning
Cannlsslon meeting In June to detenulne whether there are any pUblic or
safety concerns due to the operation of the school. In the event that there
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are public or sat'ety concerns which need to be addressed through a public
hearing, the applicant shall request and pay t'or a public hearing. If the
concerns cannot be resolved, the Planning Cknndssion may revoke the
conditional use pennlt.
1r'ftJ~ ~P~~J~'P~ ~~~P~'~J9P~
. 8. Construct a 100 foot long centerline on each leg.ot' Farrall Avenue at the
intersection of SouthEbn Street.
. 9. The centerline transition on the south leg ot' the South Ebn St reet/Far roll
Avenue intersection shall be lengthened to aminlnunof 50 t'eet and the old
"S'IOP" pavement marking be eradicated.
· 10. Parking shall be prohibited and curbs be painted red within 50 feet of the
South Ebn Street/parroll Avenue intersection on all legs.
Public Works Department
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. 11. The applicant shall dedicate ot' necessary right ot' way for widening of
Farroll Avenue prior to occupancy.
. 12. The applicant shall dedicate a ten t'oot (101) wide easement t'or street tree
planting purposes, and public utilities along Farroll Avenue prior to
occupancy.
13. No bus parking on Farrall Avenue shall be allowed.
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. 14. The applicant shall install a ~treet light as required by the CI ty to P.G. 6:
E. standards prior to occupancy.
Police Department
15. The applicant shall 'request, prior to occupancy, the Parking and Traffic
'Cannlsslonto post Farroll Road frontage ''No Stopping or Parking" during
school hours.
Building Department
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16. 'Ihe applicant shall meet with representatives ot' Building and Fire
Department to conduct an on-site walk-thru ot' facilities, prior to any
construction, alteration or occ~ancy. Items ot' major concern are:
a) alann system
b) panic h~rdware
c) accessing
d) general site condition
Fire Department
1'1. Fire and Building Department officials shall conduct anon-site inspection
to develop necessary conditions. No pennl ts or plans or occupancy to be
approved or accepted until this item is completed.
, General Qmdi tion
, . 18. The applicant shall ascertain and comply with the requirements ot' all
state, county and local agencies ,as are applicable to this project.
· If these conditions cannot be satisfied prior to occupancy, the applicants shall
,enter Into an agreement wi ththeCI ty and/or submi t a bond for the il1i>rovements to the
satisfaction of the Public WOrks Director.
On rrotlon by Cannlssioner Carr, seconded by Cannlssioner Gallagher, and by
the following roll call vote, to wit:
4DS: Cknnd ss ioner sCar r, Brandy, Gallagher and Act Ing O1ai rman
Soto
N:ES: None
.ABSDfI'a Cknnd ss loner s 'Flores, Moore and O1ai nnan Garr I sh
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the foregoing Resolution was adopted this 15th day of August 1989.
KrIESfz ~ ~n<::~~
Mary ~ Lelnlng John 0 '
Camtission Clerk Acting Qlalrman
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. ATTACHMENT "All
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CONDmONS OF APPROVAL
CONDmONAL USE PERMIT NO. 89-459, AL"\1ENDl\1ENT #1
COASTAL CHRIS1'IA.J.~ SCHOOL -
1220 Farron Avenue
GENERAL CONDmONS
COMJ.\1UNITY DEVELOPl\'fENT DEP ARThrENT
This approval authorizes the addition of three 24 'x40' modular buildings to serve as kindergarten
and high school classrooms.
l. The applicant shall ascertain and comply with all Federal, State, County and City
requirements as are applicable to this project.
2. The applicant shall comply with all original conditions of approval for Conditional Use
Pennit Case No. 89-459.
... Amended Conditional Use Permit No." 89-459 shall' be reviewed by the Planning
.).
Commission at the first regular meeting in July, 1998. Ho~ever,' the temporary modular .
units shall not be permitted after JUly,2oo1. After this date, the applicant may apply for:
th~' necessa,ry permits to replace the tempo~ buildings ~th more permanent facilities~
4. ',' Development' shall occur in substantial conformance with the plans presented to the
Planning Commission at the meeting of July 2, 1996 and marked Exhibit "A" .
TREES
5. Prior to issuance of grading permit and during construction the applicant shall
comply with the provisions of Ordin~ce 431 C.S., the Community Tree Ordinance.
DEVELOPMENT CODE
6. Development shall conform with thePF zoning requirements, exc...-pt as otherwise
approved. .'
7. Prior to issuatrce of a certificate of occupancy J all ducts, meters, air conditioning
equipment and all other mechanical equipmen~ whether on the ground, on the structure
or elsewhere, shall be screened from public view with materials architecturnl1y
compatible with the main structure. ' It is esPecially important that gas . and eleCtric.
meters, electric transformers, and large water piping systems be completely screened
from public view. "All roof-mounted equipment which generates noise, solid particles,
odors, etcetera, shall cause the objectionable material to be directed awa.y from
residential properties.
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Prior to occupancy, the applicant shall increase the height of lc:: fence adjacent to 455 . "'
7a.
and ~51 Golden West Place to a maximum of six (6) feet.
Th. All.security lighting shall-be directed on-site.
PARKS Ai'ID RECREATION DEPAR'T'l\tfRN'T CONDmONS
LANDSCAPING
8. Prior to issuance of building permit, a landscaping and inigation plan fOJ; the south
facing wall 9f Buildings 2 and 3 shall be prepared by. a licensed landscape architect
subject to review and approval by the Community Development, Police, Building and
Fire, and Parks and Recreation Depa.rtIijents. The landscaping pIan shall include the
following:
a. Tree staking, soil preparation and planting detail;-
b. The use of landscaping to screen ground-mounted utility and mechanical
equipment;
c. The required landscapin~ and improvements, This includes:
(1) Deep root planters shall be included in areas whe...~ trees are within five
feet (5') of asphalt or concrete surfaces and curbs;
(2) Water conservation practices including the use of low flow heads, drip
irrigation, mulch, gravel, drought tolerant plants and mulches shall be
incorporated into the landsCaping plan;
(3) All slopes 2: 1 or greater shall have jute mesh,' nylon mesh or equivale~t
material; and .
(4) An automated irrigation system.
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TREE PRESERV ATION PLAN
9. All trees on' the construction site to be preserved shall be protected under the. conditions '
of the Community Tree Ordinance (431 C.S.) which include but are not limited to:
(1) No mechanical trenching wit;hin the drip line of a tIre, unless approved by the
Parks and Recreation Director.
(2) No storage of equipment, supplies, tools, etc., within 8' of ~e trunk of any tree.
(3) No grading shall occur under a. trees ~line, unless approved by th~ Parks and
Recreation Director.'
(4) A five foot (5') protective fen~ shall be constructed a minimum of 8' from the
trUnk of each tree.
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SPECIAL CONDmONS
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10. Landscaping shall be planted on south side of buildings facing the parking lot, to the
,satisfaction of the Parks and Recreation Director."
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BUILDING A.L'ID FIRE DEPARThIENT CONDmONS
UBCIUFC
1L The p'roject shall comply with the most recent editions of the California Sta!e Fire and ,
Building Codes and the Uniform Building and Hre Codes as adopted by the City of
Arroyo Grande.
12. All roofs shall be class "A II .
FIRE LANES
13. Prior to issuance 0(- a' certificate of occupancy, all, fire lanes must be posted and
enforced, per Section 22500.1 of the California Vehicle Code as well as Police
Department an~ Fire Depamnent guidelii1es:
CONSTRUCTION TAX
14. Prior to issuance of a Certificate of Occupancy, appIicantshall pay a construction tax
pursuant to Article 5; Chapter"3, Title 3 of the Arroyo Grande iYfuniciI.'al ~ode.
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ABANDONMEJ.'ITINON-CONFOR1vfING
15. Prior to issuance of a grading permit or bunding permit, whichever occurs rJISt,
applicant shall show proof of properly abandoning all non-coriforming items such as
septic tanks, wells, underground piping and other undesirable 'conditions.
PUBLIC WORKS DEPARTMENT CONDTIiONS
All conditions of approval herein specified, unless otherwise noted, are to be
complied with prior to the issuance of a certificate of occupancy.
STREETS
16. The applicant shall offer for dedication to the public by sepai:ate document:
a. An easement for road wldening purposes, measuring 7 feet from edge of right-of-
way along F3I1'01l Avenue (This condition shall supersede C;ondition No. 110f
Resolution No. 2334); and
b. An additional 6 foot easement shall be dedi~ adjacent to the street right-of-
way for public utilities, cabJe TV, telephone, tree planting and maintenance.
(This condition shall supersede ConQ,ition No. 12 of Resolution No. 2334.)
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17. All grading shall be done in accordance With Arroyo Grande Grading Ordinance No. 303
C.S.'. .
STORM DRAINAGE .
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18. The site plan does not address grading and drainage. The applicant shall submit a basic
grading plan for review and approval by. the Public Works Department and the
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Community Development Department prior to issuance of b~ding permits.
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ENGINEERING
SPECIALCONDTI10NS
19. Applicant to pay drainage fees per adopted City Resolution No. 1866.
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MINUTES
PLANNING COMMISSION
AUGUST 19, 20 ATTACHMENT 3
RESOLUTION NO. 03-1897
A RESOLUTION OF T PLANNING COMMISSION OF THE CITY OF ARROYO
GRANDE RECOMMENDI THAT THE CITY COUNCIL AMEND MUNICIPAL
CODE SECTIOKN 10.16.010. CHAPTER 10.16 OF TITLE 10 AND SECTION
16.56.030 IN CHAPTER 16.56 0 ITLE 16 TO PROHIBIT PARKING IN FRONT
(STREET) V ARDS
The motion was approved on the following roll call
AVES: Commissioners Brown, Keen, Arnold, Fow
NOES: None
ABSENT: None
The foregoing Resolution was adopted on the 19th day of August 2003.
PUBLIC HEARING ITEM II.D. - AMENDED CONDITIONAL USE PERMIT CASE NO. 03-
004; APPLICANT - COASTAL CHRISTIAN SCHOOL; LOCATION - 1220 FARROLL
AVE. Staff report prepared and presented by Planning Intern, Jim Bergman.
Mr. Bergman gave an overview of the request to extend the use of temporary buildings on a
yearly basis and explaining that for the last ten years they have been trying to move the
school to property,they own that is currently in the process of ,being 'annexed to Pismo
Beach. When the' Staff Advisory Committee reviewed the proposal the applicant was
advised that two fire hydrants, should be installed for protection of life and property and the
fact they the new school building may not be ready for 2-3 years.
Commission Questions:
. Asked for clarification of. where the proposed on-site location of the fire hydrants
would be.
Mr. Bergman clarified where the hydrants would be located explaining that all portions of the
building need to be within 300 feet of a fire hydrant.
_ Chair Guthrie opened the Public Hearing.
Lance Tullis, 236 Garden Street, representative, stated the history, explaining why it would
probably be 18 -24 months before they would be able to move. He further stated that they
did not want to jeopardize public safety, but explained Why they were 'requesting that they
only be required to install one fire hydrant in the Farroll Road area ,and that their CUP be
reviewed on an annual basis.
Commissioner Brown asked if one fire hydrant was acceptable to the Fire Chief? Mr.
Strong explained why two hydrants were nee~ed. r
Mr. Tullis said because of the cost this is a dilemma and that the school opens in two ~
weeks. ~
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Chair Guthrie closed the Public Hearing. ~
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MINUTES PAGE 6
PLANNING COMMISSION
AUGUST 19, 2003
After further discussion with staff and Commission the following motion was made:
Commissioner Keen made a motion, seconded by Commissioner Arnold to recommend
approval of the Amended Conditional Use Permit with the following conditions:
1. The Conditional Use Permit to b~ reviewed each year.
2. Conditions No. 7 & 8: Language added to reflect that the applicant shall install two
fire hydrants or other solution acceptable to the Fire Chief... and posting of a
performance bond....
and adopt:
RESOLUTION 03-1898
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF
ARROYO GRANDE APPROVING AMENDED CONDITIONAL USE PERMIT
03-004 LOCATED AT 1220 FARROLL AVENUE, APPLIED FOR BY
COASTAL CHRISTIAN SCHOOL
The motion was approved on the following roll call vote:
AYES: Commissioners Keen, Arnold, Brown, Fowler and Chair Guthrie
NOES: None
ABSENT: None
the foregoing Resolution was adopted this 19th day of August, 2003.
The Commission took a 5-minute break.
PUBLIC HEARING ITEM II.E. - GENERAL PLAN AMENDMENT CASE NO. 03-002,
GENERAL PLAN AMENDMENT CASE, NO. 03-003 AND DEVELOPMENT CODE
AMENDMENT CASE NO. 03-005. Staff report prepared and presented by Teresa McClish.
Ms. McClish gave her presentation and update from the staff report, s . 9 that as a first
priority staff is bringing forward the General Plan Amendment concer: . g the redesignation
of the four concerned properties and the amendment regarding mitigation requirements
prior to bringing forward the implementing Ordinances; a second priority, staff is
proposing that these ordinances be continued and CI at the Planning Commission
October 7, and the City Council November 2 and staff may recommend further
continuation. Ms. McCUsh then gave more ail regarding the redesignated parcels
considered by the City as prime agricultLir: properties and stated that as such and in
accordance with the General Plan, a would have to be prepared and overriding
. considerations would have to be opted prior to future conversions if proposed.
Additionally, in respect to three he properties proposed to be redesignated, land Use
Element policy lU 5-13 is B sed to be deleted in its entirety. The 2001 General Plan
Mitigation Policy is prop CI to be revised to require permanent protection in the form of a
dedication of a perpe I agricultural conservation easement or other effective mechanism
for conversion of as having prime farmland soils, at a ratio of up to 2:1 instead of 1:1 with
regard to the a age of land removed from the capability for agricultural uses.
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ATTACHMENT 4
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APPEA~ TO THE CITY COUNCIL OF THE
CITY OF ARROYO GRANDE
Qate "~1 . . ..' '.' .
Name 'ani! Address of Appellant .~ Ui-IVs, cy: d~'f7Il- r! #tc4rT7-fo1 ~.'-:-
/9-d-i) ~J.L.wi, 4~o ~<;. (!,;1-
Appeal of /1'1?It.DtI'l,..y~ a.,I\Ib/r/ON t)!-{)()'j
Case No.
~ovedlDenied by . . ?~,jI,.J'1 {tAlll1iSSI"iV ..' on .47VJr 17; PJtJ '5"
, ' .' . Date
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:-TelePhone," )?D~~.><ffr~'l~,'5.:.' '. ~', .r '.
F~e':::' $'195:00 ::R~cei~t No. . (Ji..: 0 19A.d.a j. '.
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. mini~trative' Seryices/Deputy CityCI~rk'
COASTAL CHRISTIAN SCHOOL
1220 FARROll AVENUE
ARROYO GRANDE, CA 93420
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August 27, 2003 Telephone 805-489-1213
FAX 805-489-5394
Members of the City Council of the City of Arroyo Grande
214 E Branch Street
Arroyo Grande, CA 93421
Dear Sirs or Madams:
Thank you for your time. I would like to exercise the right to appeal a condition set forth by the
Planning Commission to allow the continuation of portable classrooms at our school site. The
specific item I would like to appeal is found on "Exhibit A" of correspondence dated August 20,
2003, Required hnprovements: "1/.8:
~ applicant shall install two fire hydrants, one: on the strut directly in front of the subject property and
one located inside the proputy between the existing chapel and sanctuary andthc school campus or
similar installations to the satisfaction of the Fire Chief. .
Weare in agreement and will comply with the requirement for the initial hydrant at the street,
but the requirement for the second hydrant needs further evaluation.
I would J,ike the City Council to consider amending this requirement for the following reasons:
1. The first hydrant meets the City's requirement to have hydrant's placed within 300 feet
of each other.
2. The location of the first hydrant meets the engineering requirements of the City's fire
engines.
a. Each fire engine that carries hose and is designed to fight structural fires carries
approximately 600 feet of hose. The furthest distance that one of the modular
buildings would be from the hydrant at the street' is approximately 350 feet.
Thus, providi,ng an additionallSO feet of available hose. (Se~ VISual "A")
3. The second hydrant would not provide a ~ignificant difference in time or water supply to
a fire truck that would be fighting a fire in one of the existing modular buildings.
a. In other words, the difference in time that it would take for trained fire fighters
to drop fire hose and hook up to a hydrant at the street or at the rear of parking
lot could not be significantly more than a few seconds~
b. It is my understanding that fire fighters use the term "friction loss" when
d~cribing the loss of pressure and water due to the distance water must travel
from a fire hydrant to a truck. The engines that the Fire Department currently
operate are able to pump water at similar rates, whether or not the hydrant is
100, 200, 300 or even 500 feet away from the truck. Therefore, the second
hydrant would not significantly reduce what is called friction loss.
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4. The initial reason for the requirement of a second hydrant was contingent upon the
expansion of our school site. (See item #5, page 2, of a letter dated April 21, 2000.)
a. The specific language states: Revicw requirement: after three years the proposed project
will be rMcwed. Requiranmts that arc waived at this timebcca.usc oj the temporary nature oj
the buildings would then be addressed including TCtrofittingbuildings Jor sprinklers and a fire
hydrant location.
b. This language communicates two things. First, the review requirement was
based on the expansion of our school site. Secondly, even the language of the
review requirement did not specify two hydrants, but a single hydrant.
5. \Ve have been placed in an occupancy situation that is beyond our connol. It is not our
desire to expand the 1220 Farroll Avenue school site nor raise the occupancy level. We
want to occupy the school site that we currently own and vacate the 1220 Farran Avenue
site as soon as possible. Our property is being annexed into the City of Pismo Beach, and
should have finalization within six months. The details of this annexation process can
be verified by the Planning Commission of Pismo Beach. We .already received Planning
Conunission approval by a vote 4,0 to approve the annexation. The City Council has the
project under review.
Please, I am asking for the mercy of the council to amend this requirement. If public safety were
clearly in jeopardy. then I would not have a defense. If the requirement were set forth initially
under the previous conditional use permits, then I would not have a defense. However, the
second hydrant and retrofitting were only contingent upon site expansion. I am asking the
council to uphold that requirement, if and only if, we apply for site expansion or for an
occupancy increase.
Again, I th,ank you for your time and the public service you provide to matters such as these.
Attaclunents: 3
. -
ATTACHMENT 5
MEMORANDUM
TO: ROB STRONG, COMMUNITY DEVELOPMENT DIRECTOR
FROM: TERRY FIBICH, DIRECTOR OF BUILDING AND FIRE ~
SUBJECT: FIRE HYDRANT REQUIREMENT -COASTAL CHRISTIAN
DATE: 17 OCTOBER 2003
As a condition related to the approval of Amended Conditional Use Permit 03-004, the
placement of 2 fire hydrants has been required for the purpose of life safety and
protection of property.
Coastal Christian School (the "School") has operated at 1220 Farroll Avenue during the
past years by benefit of a Conditional Use Permit. As this Conditional Use Permit was
extended the renewal was generally approved with the spoken understanding that the
School was in the process of working toward the acquisition of property outside of the
City for relocation of their facilities. As this most recent application for extension was
presented, it was again portrayed by the applicant that the School was very close to
receiving necessary approval for their relocation.
Because of the location and number of children and staff using the present facility, a
need for fire protection certainly exists. In fact, if the facility were to be built today in its
present location, minimally the entire facility would be required to have automatic fire
sprinklers installed. Partially because of different fire code regulations in effect earlier,
and because of the City's willingness to allow shprt-term exceptions to be made because
of moving plans being imminent, the School has been allowed to operate without the !
imposition of this latest requirement. ,
I
I
t
Because of continued delays, and further uncertainty regarding the positive ultimate date I
of relocation, the Condition for provision of two hydrants was recently made. It is r
believed that if necessary approvals were, given today, relocation could still be at least a
year off. \
I
Presently, two hydrants exist in the neighborhood surrounding the School location. One I
!
is located at the corner of Golden West and Farroll, approximately 650 feet from the !
I
closest point of the School buildings. The second hydrant is located at the corner of I
Carmella and Farroll, approximately 450 feet from the closest point of the school I
buildings. The School's Condition requires placement of one hydrant at the street
frontage of the property on which the School is located, and a second hydrant
approximately 300 feet distant from Farroll, toward the rear of the property. A
requirement for two new hydrants was arrived at by calculating available water supply
Page 2-Coastal Christian Hydrant Appeal
through the City water main, fire flow requirements necessary for the structures and
property on which the School is located, and the location of the structures on the
property.
The Department of Building ,and Fire remains committed to providing the highest level of
protection to our citizens, especially the students entrusted to our care by parents that
expect that uncompromised level of protection.
:tfibich\correspondence-city\communitydevelopment\firehydrants-coastalchristian.doc
-- --~-
MEMORANDUM
TO: CITY COUNCIL
FROM: ~ ~KELL Y HEFFERNON, ACTING COMMUNITY DEVELOPMENT
I DIRECTOR
BY: :S~. JIM BERGMAN, ASSISTANT PLANNER
SUBJECT: SUPPLEMENTAL INFORMATION
NOVEMBER 11, 2003 CITY COUNCIL AGENDA, ITEM 9.a.
APPEAL - COASTAL CHRISTIAN SCHOOL
DATE: NOVEMBER 11, 2003
Attached you will find an amended Resolution including Exhibit A (Conditions of
Approval) for Agenda Item 9.a., which was inadvertently left out of the Council Agenda
packet.
c: City Manager
City Attorney
-- ---- -- -- - _. . _____________ .--"TT -. "TTT'~.._____;':."-n.. .. .~T.lTnT:"llo rn--n1""t rI flIP"!
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE DENYING THE APPEAL OF THE
PLANNING COMMISSION'S APPROVAL OF AMENDED
CONDITIONAL USE PERMIT 03-004 AS SUBMITTED
WHEREAS, the applicant has filed an application for Amended Conditional Use Permit
03-004 to continue to temporarily operate a school and utilize portable buildings; and
WHEREAS, the Planning Commission of the City of Arroyo Grande considered Amended
Conditional Use Permit 03-004 at a duly noticed public hearing on August 19, 2003 in
accordance with the Development Code of the City of Arroyo Grande; and
- .
WHEREAS, the Planning Commission found that in order to better protect lives and
property associated with the continuation of temporary classrooms, the applicant must
provide two fire hydrants; one located in front of the subject property and the other
within the boundaries of the property between the existing chapel and sanctuary and
the school campus; and
WHEREAS, the City Council finds, atter due study, deliberation and public hearing, based
on all evidence presented, the following circumstances exist:
A. That the closest fire hydrant to Coastal Christian School is located on the corner
of Farroll Avenue and Golden West Place and is approximately 460 feet from the
furthest classroom.
B. Due to the recessed layout of the Coastal Christian School Campus, both a fire
hydrant located on Farroll Avenue and another located in the interior of the
property are needed to adequately protect lives and property associated with the
conditional use.
NOW, THEREFQRE, BE IT RESOLVED that the City Council of the City of Arroyo
Grande hereby denies the appeal and approves Amended Conditional Use Permit 03-004
pursuant to the above findings and subject to the conditions of approval shown in Exhibit
"A" attached hereto and incorporated herein.
On motion by Council Member , seconded by Council Member ,
and by the following roll call vote to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was adopted this 11th day of November, 2003.
"^-----~- ~-
RESOLUTION NO.
PAGE 2
TONY M. FERRARA, MAYOR
ATTEST:
KELLY WETMORE, DIRECTOR OF ADMINISTRATIVE SERVICESI .
DEPUTY CITY CLERK
APPROVED AS TO CONTENT:
STEVEN ADAMS, CITY MANAGER
APPROVED AS TO FORM:
TIMOTHY J. CARMEL, CITY ATTORNEY
I
- J
RESOLUTION NO.
PAGE30F4
EXHIBIT II A"
CONDITIONS OF APPROVAL
AMENDED CONDITIONAL USE PERMIT 03-004
. 1220 FARROll A VENUE
COMMUNITY DEVELOPMENT DEPARTMENT
GENERAL CONDITIONS:
1. The applicant shall ascertain and comply with all Federal, State, County and
City requirements as are applicable to this project.
2. The applicant shall comply with all conditions of approval f.or Amended
Conditional Use Permit 03-005, Amended Conditional Use Permit 89-459 and
,the Conditional Use Permit 89-459.
3. This application shall automatically expire on August 1 9, 2004 unless it can be
shown that all conditions of approval are satisfied upon an inspection to be
conducted by the City's Building and Fire Department.
4. The applicant must reapply for a yearly time extension of the Conditional Use
Permit starting August 19, 2004.
5. The applicant will disclose the number of enrolled students on a yearly basis.
6. The applicant shall agree to defend at his/her sole expense any action brought
against the City, its present or former agents, officers, or employees because
of the issuance of said approval, or in anyway relating to the implementation
thereof, or in the alternative, to relinquish such approval. The applicant shall
reimburse the City, its agents, officers, or employees, for any court costs and
attorney's fee's which the City, its agents, officers or employees may be
required by a court to pay as a result of such action. The City may, at its sole
discretion, participate at its own expense in the defense of any such action but
such participation shall not relieve applicant of his/her obligations under this
condition.
OCCUPANCY AND ACCESS:
7. The project shall comply with state requirements for occupancy limits and
accessibility issues.
REQUIRED IMPROVEMENTS:
.
8. The applicant shall install two fire hydrants, one on the street directly in front
of the subject property and one located inside the property between the
existing chapel and sanctuary and the 'school campus or similar installations to
-
RESOLUTION NO.
PAGE40F4
the satisfaction of the Fire Chief.
PERFORMANCE BOND:
9. The applicant shall post a performance bond within ten (10) days of the date
of approval. Both fire hydrants are to be installed within sixty (60) days of the
date of approval.
BUILDING AND FIRE DEPARTMENT CONDITIONS
10. The project shall comply with the most recent editions of the California State
Fire and Building Codes and the Uniform Building and Fire Codes (JS adopted by
the City of Arroyo Grande.
PUBLIC WORKS DEPARTMENT CONDITIONS
GENERAL IMPROVEMENT REQUIREMENTS:
11. The applicant shall pay all applicable City fees at the time they are due.
12. The developer shall be responsible during construction for cleaning city
streets, curbs, gutters and sidewalks of dirt tracked from the project site.
The flushing of dirt or debris to storm drain or sanitary sewer facilities shall
no be permitted. The cleaning shall be done after each day's work or as
directed by the Director of Public Works.
13. The applicant shall be responsible for obtaining an encroachment permit for
all work within a public right of way.
~------ -~ --.
,
9.b.
CITY OF ARROYO GRANDE
CITY COUNCIL
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that a Public Hearing will be held by the City Council of the
City of Arroyo Grande to consider the following item: MODIFICATION OF THE RATE
STRUCTURE FOR EXISTING DEVELOPMENT IMPACT FEES
APPLICANT: City of Arroyo Grande
PROPOSAL: The Council will consider adoption of a proposed
Resolution modifying the rate structure and categories
for existing development impact fees which are imposed
as a condition of approval upon all development projects
in the City. The impact fees are established for the
following public facilities: fire protection, police facilities,
community center, park improvement, water facilities,
traffic signalization, and transportation fees.
REPRESENTATIVE: City Manager
Any person affected or concerned by the proposal may submit written comments to the
Office of the City Manager before the City Council. hearing, or appear and be heard in
support of or opposition to the proposal at the time of the hearing.
Any person interested in the proposal can contact the City Manager's Office at 214 E.
Branch Street, Arroyo Grande, California, or by telephone at (80S) 473-5404 during normal
business hours (8:00 a.m. to 5:00 p.m.). The proposal will be available for public
inspection at the above address.
If you challenge an item in court, you may be limited to raising only those issues you or
someone else raised at the public hearing described in this notice, or in written
correspondence delivered to the City Council at, or prior to, the public hearing.
Failure of any person to receive the notice shall not constitute grounds for any court to
invalidate the action of the legislative body for which the notice was given.
Date and Time of Hearing: TUESDAY, NOVEMBER 11, 2003 AT 7:00 P.M.
Place of Hearing: Arroyo Grande City Council Chambers
215 E. Branch Street
~(~o'U- Arroyo Grande, California 93420
Kelly tmo
Director of Administrative Services/Deputy City Clerk
Publish 2 times, Friday, October 31, 2003 and Wednesday, November S, 2003
--------~- ---
MEMORANDUM
TO: CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER fk
SUBJECT: CONSIDERATION OF RESOLUTION MODIFYING THE RATE
STRUCTURE FOR EXISTING DEVELOPMENT IMPACT FEES
DATE: NOVEMBER 11, 2003
RECOMMENDATION:
It is recommended the Council adopt the attached resolution modifying the rate
structure for existing development impact fees.
FUNDING:
The cost of the study was $5,800, which was funded from an allocation from the
General Fund balance. The modification to the fee structure is not anticipated to
have an impact on the overall revenue that will be generated.
DISCUSSION:
The City's existing development impact fee structure is based upon a study prepared
by DMG Maximus in March 2000. Since that time, the City Council approved
changes to the fee structure in March 2001 and May 2001. These modifications were
recommended by staff to improve the accuracy of the land use categories in order to
make it easier for staff and applicants to calculate the fees.
However, staff has still been experiencing a number of problems in administering the
development impact fee program. The current formula for calculating fees results in
significant differences in fees for certain uses, and the specific uses are often not
known at the time the fees are paid or may change soon after. Since fees may differ
dramatically due to a change in tenants, it is difficult for applicants to accurately
estimate their fees and often discourages applicants from constructing units for
tenants the City's economic development program is designed to attract. Given the
number of use categories in the fee structure, it is also difficult to determine the
appropriate fees, particularly for mixed-use and multi-tenant projects. In addition, the
process is subject to abuse since applicants may alter their fee amounts based upon
the amount of space they estimate will be devoted to uses that result in a lower fee.
Therefore, at the May 13, 2003 meeting, the City Council approved a contract with
Maximus to prepare a supplemental development impact fee study to simplify the use
----------
CITY COUNCIL
CONSIDERATION OF RESOLUTION MODIFYING THE RATE STRUCTURE FOR
EXISTING DEVELOPMENT IMPACT FEES
NOVEMBER 11, 2003
PAGE 2
categories identified in the development impact fee tables. The results of the study
are attached and the objective is to make the fee structure more equitable, easier for
staff to administer, and simpler for applicants to understand and apply to their
projects.
A resolution is attached for City Council consideration that will implement the
recommendations of the study. The primary change is that the use categories used
to determine fees for a project have been consolidated from a list of detailed uses to
a small number of general categories.
AL TERNA TIVES:
The following alternatives are provided for the Council's consideration:
- Adopt the attached resolution modifying the rate structure for existing
development impact fees;
- Modify as appropriate and adopt the resolution;
- Do not adopt the resolution;
- Provide direction to staff.
Attachments:
1. Maximus Development Impact Fee Study
S:\CITY MANAGER\STEVE\Council Reports\11.11.03 Development Impact Fee Study.doc
~.._-,-"-----. --- --------_..~-------------------
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ARROYO GRANDE MODIFYING THE DEVELOPMENT
IMPACT FEE SCHEDULE
WHEREAS, pursuant to Section 3.36.040 of the Municipal Code, Development Impact
Fees shall be determined by resolution adopted by the City Council; and
WHEREAS, the City Council hereby intends to modify the fee schedule and format in order
to simplify calculation of the fees for specific residential and non-residential development.
.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande
hereby adopts the fees and fee schedule set forth in Exhibit "A" attached hereto and
incorporated herein by this reference. This Resolution shall take effect sixty (60) days after
its adoption per Government Code Section 66017.
On motion of Council Member seconded by Council Member
and on the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this day of ,2003.
RESOLUTION NO.
TONY M. FERRARA, MAYOR
ATTEST:
- .
KELLY WETMORE, DIRECTOR OF ADMINISTRATIVE SERVICESI
DEPUTY CITY CLERK
APPROVED AS TO CONTENT:
STEVEN ADAMS, CITY MANAGER
APPROVED AS TO FORM:
TIMOTHY J. CARMEL, CITY ATTORNEY
EXHIBIT "A"
CITY OF ARROYO GRANDE
DEVELOPMENT IMPACT FEE SCHEDULE
Definitions:
Development Types - Residential and commercial development divided into sub-
categories.
Units of Development - A standard measure of the cost to provide services. The
acre is the fundamental unit measure, which is divided into a smaller component,
the dwelling unit (DU).
Asset Cost Per Acre - The calculated cost to provide additional services/facilities
to new development.
Calls Per Unit - The number of yearly additional police calls generated by new
development.
Facility Cost Per Call - The cost per call to expand current police facilities to
accommodate new development.
Persons Per Unit - The number of persons expected to reside in the unit of
development.
Costs Per Capita - The cost of new or additions to the current community center,
on a per person basis, to maintain the current level of service of recreation
facilities.
Impact Fee Per Unit - The fee to be levied per unit of development in order to
recover future cost of new or expanded facilities.
Fees: '
A person seeking to construct a residential or non-residential development project shall pay
Development Impact Fees for fire protection, police facilities, traffic signalization, transportation
facilities, community centers, park improvements, and water facilities based upon the following
schedule:
,
i
J
CITY OF ARROYO GRANDE
DEVELOPMENT IMPACT FEES
REVISED 11/11/03
Fire Protection
Development Fee per Acres Fee
Type Units Acre Per Unit Per Unit
Residential - Estate Dwelling Unit $ 1,328.51 2.500 $ 3,321.28
Residential Rural Dwelling Unit $ 1,328.51 1.000 $ 1,328.51
Residential - Single-Family Dwelling Unit $ 1,328.51 1.000 $ 1,328.51
Residential - Multi-Family Dwelling Unit $ 1,328.51 0.090 $ 119.57
Residential Mobile Home Dwelling Unit $ 1,328.51 0.120 $ 159.42
Commercial - General Thousand Square Feet $ 1,328.51 0.091 $ 120.77
Commercial - Service - Thousand Square Feet $ 1,328.51 0.091 . $ 120.77
Hotel/Motel Thousand Square Feet $ 1,328.51 0.050 $ 66.43
Professional Office Thousand Square Feet $ 1,328.51 0.077 $ 102.19
Industrial Thousand Square Feet $ 1,328.51 0.067 $ 88.57
Police Facilities
Development Fee per Calls Fee
Type Units Call Per Unit Per Unit
Residential - Estate Dwelling Unit $ 110.88 0.250 $ 27.72
Residential Rural Dwelling Unit $ 110.88 0.250 $ 27.72
Residential - Single-Family Dwelling,Unit $ 110.88 0.750 $ 83.16
Residential - Multi-Family Dwelling Unit $ 110.88 1.320 $ 146.36
Residential Mobile Home Dwelling Unit $ 110.88 0.750 $ 83.16
Commercial - General Thousand Square Feet $ 110.88 3.909 $ , 433.44
Commercial - Service Thousand Square Feet $ 110.88 2.273 $ 252.00
Hotel/Motel Thousand Square Feet $ 110.88 1.195 $ 132.50
Professional Office Thousand Square Feet $ 110.88 0.095 $ 10.58
Industrial Thousand Square Feet $ 110.88 0.045 $ 5.03
Traffic Signals
Development Fee per PeakTrips Fee
Type Units Trip Per Unit Per Unit
Residential - Estate Dwelling Unit $ 488.53 1.2 $ 586.24
Residential Rural Dwelling Unit $ 488.53 1.2 $ 586,24
Residential- Sing.fe-Family Dwelling Unit $ 488.53 1.0 $ 488.53
Residential - Multi-Family Dwelling Unit $ 488.53 0.7 $ 341.97
Residential Mobile Home Dwelling Unit $ 488.53 0.5 $ 244.27
Commercial - General Thousand Square Feet $ 488.53 7.0 $ 3,419.71
Commercial - Service Thousand Square Feet $ 488.53 4.0 $ 1,954.12
Hotel/Motel Thousand Square Feet $ 488.53 1.8 $ 879;35
Professional Office Thousand Square Feet $ 488.53 2.8 $ 1,367.88
Industrial Thousand Square Feet $ 488.53 0.8 $ 390.82
Page 1
CITY OF ARROYO GRANDE
DEVELOPMENT IMPACT FEES
REVISED 11/11/03
Street Improvements
Development Fee per PeakTrips Fee
Type Units Trip Per Unit Per Unit
Residential - Estate Dwelling Unit $ 1,333.48 1.2 $ 1,600.18
Residential Rural Dwelling Unit $ 1,333.48 1.2 $ 1,600.18
Residential - Single-Family Dwelling Unit $ 1,333.48 1.0 $ 1,333.48
Residential - Multi-Family Dwelling Unit $ 1,333.48 0.7 $ 933.44
Residential Mobile Home Dwelling Unit $ 1,333.48 0.5 $ 666.74
Commercial - General Thousand Square Feet $ 1,333.48 7.0 $ 9,334.36
Commercial - Service Thousand Square Feet $ 1,333.48 4.0 $ 5,333.92
- .
Hotel/Motel Thousand Square Feet $ 1,333.48 1.8 $ 2,400.26
Professional Office Thousand Square Feet $ 1,333.48 2.8 $ 3,733.74
Industrial Thousand Square Feet $ 1,333.48 0.8 $ 1,066.78
Community Centers
Development Fee per Persons Fee
Type Units Capita Per Unit Per Unit
Residential - Estate Dwelling Unit $ 36.41 2.7 $ 98.31
Residential Rural Dwelling Unit $ 36.41 2.7 $ 98.31
Residential- Single-Family Dwelling Unit $ 36.41 2.7 $ 98.31
Residential - Multi-Family Dwelling Unit $ 36.41 2.0 $ 72.82
Residential Mobile Home Dwelling Unit $ 36.41 1.5 $ 54.62
Park Improvements
Development Fee per Persons Fee
Type Units Capita Per Unit Per Unit
Residential - Estate Dwelling Unit $ 628.34 2.7 $ 1,696.52
Residential Rural Dwelling Unit $ 628.34 2.7 $ 1,696.52
Residential - Single-Family Dwelling Unit $ 628.34 2.7 $ 1,696.52
Residential - Multi-Family Dwelling Unit $ 628.34 2.0 $ 1,256.68
Residential Mobile Home Dwelling Unit $ 628.34 1.5 $ 942,51
Water Facilities
Meter Size Fee
5/8 inch - 3/4 inch $ 690.76
1 inch $ 1,151.26
1 1/2 inch $ 2,302.50
2 inch $ 3,684.00
3 inch $ 6,907.50
4 inch $ 11,512.51
6 inch $ 23,035.98
8 inch $ 46,072.00
Page 2
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Cjty of Arroyo Grande
1l71pact Fee Study
Update
November 3, 2003
MAXIMUS, Inc.
Cost Services Division
4320 Auburn Boulevard, Suite 2000
Sacramento, CA 95841
916.485.8102
916.485.0111 (Fax)
www.maximus.com
---- - ~------~-- u__________ ,,~_ ~______ ... - I
City of Arroyo Grande -Impact Fee Update
fMPAa FEE STUDY UPDATE
In early 2000, DMG-MAXIMUS, which is now a the Cost Services Division of
MAXIMUS, completed a development impact fee study for the City of Arroyo
Grande. Following completion of that study, the City adopted impact fees based
on the study report. Subsequently, based on experience administering the impact
fee program, City staff refined the land use categories used to apply the fees to par-
ticular development projects. The City has also increased the fees annually to keep
pace with changes in the cost of construction. Through those adjustments, the un-
derlying basis of the fees has not changed.
The purpose of this update by MAXIMUS is to further address issues related to the
definition of land use categories, and to review the units of development used to
apply the fees to development projects. The purpose is to simplify administration
of the fees and ensure that they can be applied fairly to all types of development.
FACILmES ADDRESSED IN THIS REPORT
The impact fees calculated in the 2000 DMG-MAXIMUS report and reviewed in
this study address the following facility types:
. Street Improvements
. Traffic Signals
. Fire Protection Facilities
. Parks and Recreation Facilities
. Police Facilities
Water and wastewater impact fees charged by the City were not part of the 2000
DMG-MAXIMUS study and are not addressed here.
ISSUES PERTINENT TO THIS REVIEW
In general, this review involves two issues: (1) how best to classify development
into land use categories or development types for purposes of implementing the
impact fee program; and, (2) what units of development (e.g., acreage vs. square
feet of building area) should be used to measure the extent of non-residential de-
velopment. Each of these issues is discussed below.
Land Use Categories. Impact fees for different types of facilities are based on some
measure of service demand. For example, impact fees for street improvements and
traffic signals are typically based on the number of vehicle trips generated by devel-
November 3, 2000 MAXlMUS Page 1
I
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I
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City of Arroyo Grande - Impact Fee Update
opment. Different types and amounts of development produce different numbers
of vehicle trips and the impact fees paid by a particular development project for
street improvements or traffic signals should reflect those differences in the impact
of development.
Impact fees for residential development are commonly standardized on a per-
dwelling unit basis. For example, widely-used trip generation manuals show that
an average single-family dwelling unit produces about 10 total trips and one peak-
hour trip per day. Similar rates are available for other types of residential devel-
opment. It is accepted practice to standardize all sorts of residential impact fees
using factors that represent the average impact per dwelling unit.
However, non-residential development projects, including commercial and indus-
trial land uses, are much more varied in their impacts-especially with respect to
trip generation characteristics. While trip generation manuals list only a handful of
residential development types, they may list 50 or more types of non-residential
development, each with different trip generation characteristics. Other types of
impact fees, such as those for police facilities, may also reflect significant variation
in impacts, although available information does not allow analysis at the level of
detail used for traffic impacts.
Each City must decide how to handle those impact variations in the administration
of its impact fee program. That decision has implications for the precision and
predictability of the fees, and there can be tradeoffs between the two. For exam-
ple, establishing traffic impact fees for many distinct categories of commercial de-
velopment allows the City to tailor the fees very specifically to the measurable im-
pacts of a particular business type. On the other hand, when the fees are imposed,
the City may not know the specific characteristics of the businesses that will occupy
a project. Furthermore, the occupants and specific uses of a building may change
over time. Thus, there are advantages to using broader categories of development
in the impact fee schedule. That approach may also make the fees more predictable
for the developer---a significant advantage in many cases.
The effort in this update has been to balance those competing interests to come up
with a schedule of impact fees that is reasonably precise in representing the impacts
of development, but also practical and predictable. The amended fee schedule pre-
sented later in this report contains a revised set of land use categories that is in-
tended to provide a better balance of precision and predictability.
Units of Development. A related issue is the selection of units of development to
be used in administering the impact fee program. In the 2000 impact fee study,
impact fees for non-residential development were calculated on a per-acre basis,
because the development information that was available for use in the study was in
acres. Since those fees were adopted, the City has found it difficult to apply the
November 3, 2000 MAXlMUS Page 2
~------ ------~---"'--~-----'---'-~-------'----- .------------ - ----.--~,---
City of Arroyo Grande - Impact Fee Update
per-acre fees to certain projects--especially those containing a mix of uses (e.g.,
residential, commercial and office). It is possible to convert per-acre fees to per-
square foot fees, using estimated floor area ratios for different types of develop-
ment.
This update has converted the non-residential fees into fees per thousand square
feet (KSF) of building area using the factors shown in the following table.
Development Sq. Ft. Bldg. Floor Area
T e Area er Acre Ratio FAR
Commercial- General 11,000 0.25
Commercial- Service 11,000 0.25
HoteVMotel 20,000 0.46
Professional Office 13,000 0.30
Industrial 15000 0.34
The use of KSF instead of square feet as the basis for the fees is more accurate in
cases where the per-square foot fees are very small and rounding becomes a signifi-
cant factor. For example, if we take two fees, one calculated as $10.00 per KSF
and another calculated as $5.00 per KSF, and divide both by 1,000 to arrive at a
fee per square foot, both fees round to $0.01 per square foot. If the square foot
fees are applied to a 10,000 square foot building, the total fee in both cases would
be $100. But if the original per-KSF fees are used, the totals fees would be $100 in
one case and $50.00 in the other.
UPDATED IMPAa FEE SCHEDULE
The tables on the following page show the updated fee schedule incorporating the
changes discussed above. The number of development types or land use categories
used in the updated schedule is much smaller than in recent versions of the fee
schedule developed by the City, and the non-residential fees are shown in terms of
1,000 square feet (KSF) of building area instead of in acres. Two points should be
emphasized. First, the underlying fee structure, that is, the cost per unit of service
used in the updated schedules, has not changed from the City's recent fee sched-
ules. Second, the City still has the option of customizing impact fees for projects
that clearly do not fit into one of the development types listed in the schedule.
That can be done by using the cost per unit of service for each type of facility (e.g.,
cost per peak hour trip) and applying that cost to the actual units of service re-
quired by a particular project. We would also note that the City should continue
to adjust the fee schedule annually to keep pace with changes in construction costs
for future improvements.
November 3, 2000 MAXIMUS Page 3
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CIty of Arroyo Grande -Impact Fee Update
City of Arroyo Grande - Revised Impact Fee Schedule
Fire Protection Police Facilities
Development Fee per Acres Fee Fee per Calls Fee
Type Units Acre per Unit per Unit Call per Unit per Unit
Residential - Estate DU $1,328.51 2.500 $3,321.28 $ 110.88 0.250 $ 27.72
Residential Rural DU $1,328.51 1.000 $1,328.51 $ 110.88 0.250 $ 27.72
Residential- Single-Family DU $1,328.51 1.000 $1,328.51 $ 110.88 0.750 $ 83.16
Residential - Multi-Family DU $1,328.51 0.090 $ 119.57 $ 110.88 1.320 $ 146.36
Residential Mobile Home DU $1,328.51 0.120 $ 159.42 $ 110.88 0.750 $ 83.16
Commercial - General KSF $1,328.51 0.091 $ 120.77 $ 110.88 3.909 $ 433.44
Commercial - Service KSF $1,328.51 0.091 $ 120.77 $ 110.88 2.273 $ 252.00
HoteVMotel KSF $1,328.51 0.050 $ 66.43 $ 110.88 1.195 $ 132.50
Professional Office KSF $1,328.51 0.077 $ 102.19 $ 110.88 0.095 $ 10.58
Industrial KSF $1328.51 0.067 $ 88.57 $ 110.88 0.045 $ 5.03
T rafflc Si2t1als Street Improvements
Development Fee per PeakTrips Fee Fee per PeakTrips Fee
Tvoe Units Trip per Unit per Unit Trip per Unit per Unit
Residential - Estate DU $ 488.53 1.200 $ 586.24 $ 1,333.48 1.200 $1,600.18
Residential Rural DU $ 488.53 1.200 $ 586.24 $ 1,333.48 1.200 $1,600.18
Residential- Single-Family DU $ 488.53 1.000 $ 488.53 $ 1,333.48 1.000 $1,333.48
Residential - Multi-Family DU $ 488.53 0.700 $ 341.97 $ 1,333.48 0.700 $ 933.44
Residential Mobile Home DU $ 488.53 0.500 $ 244.27 $ 1,333.48 0.500 $ 666.74
Commercial - General KSF $ 488.53 7.000 $3,419.71 $ 1,333.48 7.000 $9,334.36
Commercial - Service KSF $ 488.53 4.000 $1,954.12 $ 1,333.48 4.000 $5,333.92
HoteVMotel KSF $ 488.53 1.800 $ 879.35 $ 1,333.48 1.800 $2,400.26
Professional Office KSF $ 488.53 2.800 $1,367.88 $ 1,333.48 2.800 $3,733.74
Industrial KSF $ 488.53 0.800 $ 390.82 $ 1 333.48 0.800 $1,066.78
Community Centers Park Improvements
Development Fee per Persons Fee Fee per Persons Fee
Type Units Capita per Unit per Unit Capita per Unit per Unit
Residential - Estate DU $ 36.41 2.700 $ 98.31 $ 628.34 2.700 $1,696.52
Residential Rural DU $ 36.41 2.700 $ 98.31 $ 628.34 2.700 $1,696.52
Residential - Single-Family DU $ 36.41 2.700 $ 98.31 $ 628.34 2.700 $1,696.52
Residential - Multi-Family DU $ 36.41 2.000 $ 72.82 $ 628.34 2.000 $1,256.68
Residential Mobile Home DU $ 36.41 1.500 $ 54.62 $ 628.34 1.500 $ 942.51
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November 3, 2000 MAXlMUS Page 4 ,
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I.e.
CITY OF ARROYO GRANDE
CITY COUNCIL MEETING
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that the City Council of the City of Arroyo Grande will hold a
Public Hearing on the following item:
CASE NO: General Plan Amendment Case No. 03-005 for the 2003
Housing Element Update
LOCATION: City of Arroyo Grande
ENVIRONMENTAL
DETERMINATION: Negative Declaration based on the 2001 General Plan
Program EIR
REPRESENTATIVE: Kelly Heffernon, Associate Planner
The City Council will review the goals, policies and programs of the proposed 2003 Housing
Element and consider the Planning Commission's recommendation to adopt a Resolution
approving the 2003 Housing Element.
Comments on the Draft Negative Declaration may be either: (1) mailed to the Community
Development Department, P.O. Box 550, Arroyo Grande, CA 93421; (2) delivered in person
to the Community Development Department at 214 East Branch Street, Arroyo Grande, CA
or (3) provided in person at the public hearing scheduled for November 11, 2003. Any
person affected or concerned by this issue may submit written' comments to the Community
Development Director before the City Council hearing, or appear and be heard in support
of, or opposition to, the project.
Copies of the Draft Negative Declaration may be reviewed at City Hall, located at 214 East
Branch Street, Arroyo Grande, CA, during normal business hours (8:00 a.m. to 5:00 p.m.).
The proposed 2003 Housing Element Update is available for public inspection at 214 East
Branch Street, Arroyo Grande; or on the City's website http://www.arroyogrande.org. If you
have questions, please contact the Community Development Department at 473-5420.
If you challenge an item in court, you may be limited to raising only those issues you or
someone else raised at the Public Hearing described in this notice, or in written
correspondence delivered to the City Council at, or prior to, the public hearing. Failure of
any person to receive the notice shall not constitute grounds for any court to invalidate the
action of the legislative body for which the notice was given.
Date and Time of Meeting: TUESDAY, NOVEMBER 11, 2003 AT 7:00 P.M.
Place of Meeting: Arroyo Grande City Council Chambers
215 E. Branch Street Arroyo Grande, CA 93420
~(JJL~
Kelly tmoli, Director of Administrative Services!
Deputy City Clerk
Publish 1T, Friday, October 31,2003
~---'~-----'- -----~-,-
"
MEMORANDUM
TO: CITY COUNCIL
FROM: M~ KELLY HEFFERNON, ACTING COMMUNITY DEVELOPMENT DIRECTOR
SUBJECT: GENERAL PLAN AMENDMENT 03-005; 2003 HOUSING ELEMENT
UPDATE
DATE: NOVEMBER 11, 2003
RECOMMENDATION:
It is recommended the Council:
1. Open the public hearing and receive public comment on the Draft Housing
Element; and
2. Adopt a Resolution approving General Plan Amendment 03-005 - the 2003
Housing Element.
DISCUSSION:
Backaround
During the past year, the Planning Commission and Local Housing Task Force (LHTF)
held six (6) public workshops to gain public input on the housing needs of the community
and develop a draft Housing Element document (see Attachments 1-6 for Planning
Commission, meeting minutes, and Attachment 7 for LHTF report on proposed housing
strategies, goals and policies). On September 2, 2003 the Planning Commission
conducted a public hearing on the draft document to refine proposed goals, policies, and
implementing programs, and on October 21, 2003, the Planning Commission adopted a
Resolution recommending that Council adopt the 2003 Housing Element (see Attachments
8-9 for meeting minutes). Planning Commission recommended changes are shown in
yellow highlighted text as deletions (stFikstArewsl=t) or additions (underlined).
On October 27, 2003 the City received comments on the Draft Housing Element from the
Department of Housing and Community Development (HCD), included as Attachment 10.
Staff has modified the document based on HCD comments. These changes are shown in
blue highlighted text as deletions (itS.'!9i2ss striKstkJre!Jfk) or additions (underlined and
italicized). Staff recommended changes are shown in green highlighted text as deletions
(&tFikstl=trewsl=t) or additions (underlined).
State Law
State Law requires each community to have an adopted Housing Element. The Housing
Element consists of a series of goals, policies and programs that are oriented to the
preservation, improvement and development of housing. The Housing Element identifies
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CITY COUNCIL
NOVEMBER 11, 2003
DRAFT 2003 HOUSING ELEMENT
PAGE 2
sites for all types of housing that are projected to meet the needs of all economic
segments of the community. The Housing Element Update must contain all State
mandated information including quantified objectives and the identification of adequate
sites to meet Arroyo Grande's identified housing needs. It must also address recently
adopted legislation regarding constraints that hinder meeting the housing needs for
persons with disabilities.
Reoional Housino Needs Plan
The Regional Housing Needs Plan (RHNP) is part of a statewide mandate to address
housing issues that are related to future growth in the San Luis Obispo Council of
Governments (SLOCOG) region, and is required by State law. The State Department of
Housing and Community Development (HCD) determines the distribution of regional
housing needs based on certain criteria and available data, and each council of
governments is then . responsible for allocating the regional housing need among its
member jurisdictions. The RHNP allocates to cities and counties their "fair share" of the
region's projected housing needs by household income group over a planning period of
seven and a half (7 ~) years between January 2001 and July 2008.
The heart of the RHNP is a set of tables which indicate, for each jurisdiction, the
distribution of housing needs for each of four household income groups, and the projected
new housing unit targets by income group for the ending date of the plan. These units are
considered the basic new construction need to be addressed by individual city and county
housing elements. The allocations are intended to be used by jurisdictions when updating
their housing elements as the basis for assuring that adequate sites and zoning are
available to accommodate at least the number of units allocated.
Below is Arroyo Grande's regional allocation of housing units by income category,
identifying roughly 45 percent of the units for families below moderate-income levels.
Because these allocations are for the time period commencing January 1, 2001, the units
built between then and today count towards the total allocation. Since January of 2001,
the City has issued permits for 331 residential units. However, all of these permits were
for single-family residences not restricted to or intended for families with below moderate-
income levels and none were for multi-family units.
Re ional Housin
Ve Low Total Units
310 1,192
The core of the document is Chapter 2, entitled "Goals, Policies, Programs and Quantified
Objectives". This chapter outlines the direction the City will take with respect to identified
housing problems and the steps taken to implement Housing Element policies.
Implementing programs were debated at length during Planning Commission and LHTF
workshops, and are listed below in their final recommended form for convenient reference.
Of particular interest to Planning Commissioners were programs B.1-1, B.2-1 (regarding
affordability restrictions with an affordable "rollover" provision, and the need to contract
with a housing authority to manage affordable units), F.1-1, F.2-1 (regarding strengthening
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CITY COUNCIL
NOVEMBER 11, 2003
DRAFT 2003 HOUSING ELEMENT
PAGE 3
the City's inclusionary housing ordinance). A program that the Planning Commission
recommended be eliminated was 8.3-2, which reduced the impact fees for housing units
for families with incomes of 120% to 150% of the median income for the County. The
Planning Commission felt that the density bonus serves as sufficient incentive to provide
housing for this income level.
2003 Housina Element Implementina Proarams
Listed below is a summary of programs intended to implement the goals and policies
identified in the Housing Element.
A.1-1. In addition to implementing the Water Conservation Program adopted May 2003, the
City shall investigate other programmatic approaches the City will undertake to address
the availability of water. The City shall also inform Arroyo Grande's water and sewer
providers about prioritizing housing development projects for lower-income households
for public services, per Government Code Section 65589.7.
A.2-1. The City shall encourage and publicize the secondary dwelling program to increase
public awareness.
A.2-2. The City shall reduce impact fees for the construction of second dwellings
A.4-1. The City shall initiate a Development Code Amendment to establish a minimum
residential density of 75 percent of the maximum densities allowed in each residential
and mixed-use zone, with exceptions made for properties with significant environmental
constraints as determined through the CEQA process.
A.5-1. The Development Code Update shall include minimum residential densities for
properties zoned Mixed Use. Exceptions shall be allowed for properties with significant
environmental constraints as determined through the CEQA process.
A. 9-1. The Development Code shall be updated to encourage the use of alternative housing
types, such as pre-fabricated homes, for special needs housing
A.10-1. In order to provide financial incentives for all affordable housing, the City shall evaluate
its development standards such as setbacks, landscaping, community tree ordinance
requirements, parking' requirements, road widths, lot coverage, floor-area ratio open
space and height requirements that prevent builders from achieving the currently
allowed or any density bonuses.
,
A.11-1. The City shall modify the Density Bonus regulations to expand the bonus for all
affordable units as follows:
. The City shall grant, in designated mixed use corridors such as East Grand Avenue,
a density bonus above the State standard for projects serving households that meet
state defined very~low and low-income income levels (the State requires a minimum
25 percent density bonus for projects that provide either 10 percent of the units for
very-low income, 20 percent of the units for low-income or 50 percent of the units for
senior housing units).
. The City shall grant a density bonus of at least 50 percent for residential projects in
which at least 35 percent of all units (including the density bonus units) meet State
definitions for very-low and low-income units.
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CITY COUNCIL
NOVEMBER 11, 2003
DRAFT 2003 HOUSING ELEMENT
PAGE 4
. The City shall grant a density bonus of 30 percent for residential projects in which at
least 20 percent of all units (including the density bonus units) will be sold to
households earning between 80 percent and 120 percent of the county median
income (or low and moderate-income, respectively).
. The City shall grant a density bonus of 20 percent for residential projects in which at
least 50 percent of all units (including the density bonus units) will be sold to
households earning between 120 percent and 150 percent of the county median
income (workforce housing). The City shall limit the density bonus for above
moderate-income housing to the regional housing allocation of 400 units until 50
percent of the very low, low and moderate-income allocations are permitted. The
City shall track the number and type of housing permits issued to ensure that density
bonuses are not offered in the above moderate-income category until this
percentage is achieved.
A.12-1. The City shall expand its Geographical Information System (GIS) mapping and planning
database to create and maintain a basic inventory of vacant and underutilized
"opportunity sites".
6.1-1. The City shall establish a program for tracking all residential projects that include
affordable housing to ensure that the affordability is maintained for at least 30 years, and
that any sale or change of ownership of these affordable units prior to satisfying the 30-
year restriction shall be "rolled over" for another 30-years to protect "at-risk" units.
6.2-1. The City shall contract with a housing authority, or similar entity, for the monitoring of
affordable units to ensure compliance.
6.3-1. The City shall modify its development impact fee schedule to charge no impact fees,
excluding water and sewer fees for very low-income housing units, and 75 percent for
lower fees for low-income housing units.
6.4-1. The City shall update the Development Code to increase the residential height limit to
three stories or 30 feet, whichever is less; a maximum of 36 feet would be allowable
through the Minor Use Permit (MUP) process.
6.6-1. The City shall research appropriate areas to establish or expand existing parking
districts to reduce on-site parking requirements and thereby enable additional density.
C.1-1. The City shall establish criterion for allocating financial resources from its In-lieu
Affordable Housing Fund and Redevelopment Agency (RDA) Low and Moderate
Housing Fund to augment very low and low-income housing development. The financial
projection from the RDA housing set-aside fund and In-lieu Affordable Housing Fund for
this planning period (through June 2008) are shown in the table below.
FY 03-04 FY 04-05 FY 05-06 FY 06-07 FY 07-08 Total
Redevelopment $80,000 $40,000 $40,000 $50,000 $50,000 $260,000
In-Lieu Fees $800,000 $100,000 $75.000 $75.000 $75 000 $1 125,000
Grants/Other $0 $100,000 $75,000 $75,000 $75,000 $725,000
Total $880,000 $240,000 $190,000 $75,000 $200,000 $2,110,000
Funding will be used for financial incentives to developers for the inclusion of affordable units above the inclusionary housing
requirements and for potential purchase of land for affordable housing development. CUJTently, the City has committed $800,000
to a 108-unit affordable housing project and an additional $40,000 to a second project. The City is also investigating potential
properties for purchase and redevelopment.
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CITY COUNCIL
NOVEMBER 11, 2003
DRAFT 2003 HOUSING ELEMENT
PAGE 5
C.4-1. The City shall meet with local non-profit and private developers semi-annually, or more
frequently if opportunities arise, to promote the very low and low-income housing
programs outlined in the Housing Element. The City shall direct private housing
developers to funding sources (such as federal and state housing grant fund programs
and local housing trust funds) to promote affordable housing as outlined in the policies of
GoalC.
C.4-2. The City shall participate in financial incentive programs established by the San Luis
Obispo County Housing Trust Fund (newly established local non-profit agency), such as
a revolving loan program.
0.1-1. The City shall encourage specific plans for land within its Sphere of Influence that
include at least 25% of residential capacity for apartment development.
0.2-1. Parking requirements for apartments shall be as follows:
. Studio units require one parking space;
. One bedroom units require one and a half spaces;
. Two bedroom units and above require two spaces plus % space for each
additional bedroom;
. On-site guest parking requirements can be waived or reduced subject to
approval of the Community Development Director through the Minor Use Permit
(MUP) process.
E.1-1. Prior to approving any residential condominium conversions, the City shall establish a
monitoring program to ensure ongoing compliance with the affordable price controls
established in the agreement between and City and the developer.
E.2-1. The City shall not approve condominium conversion projects in anyone calendar year
resulting in more units being converted than the number of multi-famUy rental dwellings
added to the City's housing stock during the preceding year. The number of multi-family
rental units added in one year shall be determined as follows: From January 1. through
December 31S\ the total number of multi-family rental units given a final building
inspection and occupancy permit minus the number of such units demolished, removed
from the City, or converted to nonresidential use.
E.4-1. When necessary, the City shall establish a "shared equity program" whereby the owner
may sell the affordable property within thirty (30) years of initial sale by sharing the
difference in the market value to the restricted value with the City upon resale of the
affordable unit. Funds generated would then be used to develop additional affordable
housing within the City.
F.1-1. At least ten percent (10%) of every housing project greater than nine (9) units shall
contain inclusionary housing. Builders shall receive a density bonus of at least e~ual in
number to the inclusionary requirement.
F.2-1. The City shall consider alternatives to construction of inclusionary units on-site, such as
land dedication, off-site development, or payment of in-lieu fees, subject to the City's
determination that the alternative meets the need for affordable housing at least as well
as on-site inclusionary units.
The in-lieu fee per dwelling unit of those projects not providing an affordable unit shall be
calculated based upon the difference between the median home value in the City and
the median value of a moderate income dwelling, divided by ten. The in-lieu fee shall be
established on a quarterly basis unless otherwise established by the City.
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CITY COUNCIL
NOVEMBER 11, 2003
DRAFT 2003 HOUSING ELEMENT
PAGE 6
F.3-1. The City shall conduct a feasibility study to determine the appropriate inclusionary
housing requirement for commercial development.
F.4-1. As a condition of development approval for applicable discretionary projects, applicants
shall submit an "affordable housing agreemenr for City approval. The final agreement
shall be recorded and relevant terms and conditions shall be recorded as a deed
restriction on those lots or affordable units subject to affordability requirements. The City
shall develop a standard agreement form.
G.1-1. A Minor Use Permit (MUP) application shall be processed for projects including
affordable housing to allow for reductions within ten percent (10%) of Development
Code standards. Any appeal for such approvals shall equal the cost of processing the
appeal and holding the hearing. The City Council may refund the appeal fee if it
determines the appeal is in the public interest.
G.2-1. The City shall maintain a mailing list of persons interested in development projects
containing affordable housing. Agendas for all City meetings related to these projects
shall be mailed to persons on the mailing list. The City shall also post the agendas on
the City's website.
H.1-1. The City shall continue to contract and coordinate with the San Luis Obispo Housing
Authority to maintain and expand Section 8 rental housing assistance to qualified
households.
H.1-2. The City shall continue to apply for Community Development Block Grant (CDBG)
funding for rehabilitation of very low, low and moderate-income housing for both owner-
occupied and rental units. Rehabilitation of second story residential units in the Village
Core and/or mixed use housing within the East Grand Avenue corridor shall be
considered for such programs.
H.2-1. The City shall consider abatement of unsafe or unsanitary structures, including buildings
or rooms inappropriately used for housing contrary to adopted health and safety codes.
Where feasible, the City will encourage rehabilitation and allow reasonable notice and
time to correct deficiencies. Where necessary, very low and low-income residents
displaced by abatement action shall be eligible for relocation assistance, subject to
Council or Redevelopment Agency approval.
1.1-1. At least one-year notice shall be required prior to the conversion of any units for low-
income households to market rate units in any of the following circumstances:
. The units were constructed with the aid of government funding
. The units were required by an inclusionary zoning ordinance
. The project was granted a density bonus
. The project received other incentives
Such notice shall at a minimum be given to the following:
. The City of Arroyo Grande
. State Department of Housing and Community Development
. San Luis Obispo Housing Authority
. Residents of at-risk units
J.1-1. The City shall promote housing opportunities for seniors by identifying sites suitable for
senior housing and if necessary, initiating zone changes for those sites as part of the
Development Code Update.
J.3-1. The City shall continue to allow for group housing.
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RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE ADOPTING THE 2003 HOUSING ELEMENT OF THE
GENERAL PLAN; ADOPTING A NEGATIVE DECLARATION AND
INSTRUCTING THE DIRECTOR OF ADMINISTRATIVE SERVICES TO
FILE A NOTICE OF DETERMINATION
WHEREAS, Section 65302(c) of the California Government Code requires all cities and
counties to prepare a general plan housing element; and
WHEREAS, the City of Arroyo Grande has determined that it is appropriate and
necessary to update and revise the previous housing element adopted by the City in 1993
and updated in 2001; and
WHEREAS, a Ci~-apPointed Local Housin~ Task Force held numerous meetings over
an eight (8) mont period to provide techmcal review of the 2003 Housing Element to
the Planning Commission and City Council, and to help build consensus on policy
direction; and
WHEREAS, the public participation in the development of the housing element included
duly noticed public workshops on the following dates to solicit communi~ input about
the availability of affordable housing and special housing needs in Arroyo rande:
. November 19,2002 '
. February 18, 2003
. May 20, 2003
. July 1, 2003
. July 29, 2003; and
WHEREAS, dU~ noticed public hearin~s were held by the Plannin~ Commission of the
City of Arroyo rande on September ,2003 and October 21, 20 3, -at which time all
interested persons were given the opportunity to be heard; and
WHEREAS, a preliminary draft Housing Element has been reviewed by the State
Housing and Community Development Department and changes to the document were
suggested and requested. State Housing and Community Development Department's
comments were considered and appropriate modifications based on these comments
were made to the Housing Element; and
WHEREAS, the City Council has reviewed and considered the information and public
testimony presented at a duly noticed public hearinQ held on November 11, 2003 and
the information contained in the proposed Draft Housing Element and staff repor:ts; and
WHEREAS, the City Council finds as follows:
A. The City of Arroyo Grande has prepared an initial study pursuant to
Section 15063 of the Guidelines of the California Environmental Quality
Act for the Housing Element.
B. Based on the initial study, a negative declaration was prepared for review
by the public and review and adoption by the City Council.
C. After holding a public hearing pursuant to State and City Codes, and
considering the record as a whole, the City Council adopts the negative
declaration and finds that there is no substantial evidence of any
RESOLUTION NO.
PAGE 2
significant adverse effect, either individually or cumulatively on wildlife
resources as defined by Section 711.2 of the Fish and Game Code or on
the habitat upon which the wildlife depends as a result of development of
this project.
WHEREAS, the Ci~ Council has reviewad the proposed Housing Element in
compliance with the alifornia Environmental Quality Act (CECA) and has determined
that a negative declaration can be adopted.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo
Grande does hereby adogt the 2003 Housing Element, attached hereto as Exhibit "A"
and incorporated herein r this reference, and directs the Director of Administrative
Services to file a Notice 0 Determination. Said action is taken based on the following
findings of fact:
1. The Housing Element is consistent with the goals, objectives, policies and
programs of the General Plan and will not result in any internal inconsistencies
within the General Plan.
2. The Housing Element will not adversely affect the public health, safety and
welfare because it will help the City achieve housing for all economic segments
of the community.
3. Based on the initial study and all the comments received, the potential
environmental impacts of the Housing Element are insignificant.
BE IT FURTHER RESOLVED that the City Council of the City of Arroyo Grande,
California hereby repeals the 1993 Housing Element and 2001 Housing Element Update.
This Resolution shall become effective thirty (30) days after its adoption.
On motion of Council Member , seconded by Council Member ,
and by the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was adopted this day of 2003.
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RESOLUTION NO.
PAGE 3
TONY M. FERRARA, MAYOR
ATTEST:
KELLY WETMORE, DIRECTOR OF ADMINISTRATIVE SERVICESI
DEPUTY CITY CLERK
APPROVED AS TO CONTENT:
STEVEN ADAMS, CITY MANAGER
APPROVED AS TO FORM:
TIMOTHY J. CARMEL, CITY ATTORNEY
S:\COMMUNITY _DEVELOPMENl\PROJECTS\SPECIAL\2003_HOUSING_ELEMENT\Local Housing Task Forc:e\Meetings\11-11-Q3
CC Meeting\CC HE Reso.doc
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ATTACHMENT 1
MINUTES
SPECIAL MEETING OF THE
CITY OF ARROYO GRANDE PLANNING COMMISSION
NOVEMBER 19, 2002
CALL TO ORDER - The Arroyo Grande Planning Commission met in special session
with Chair Costello presiding. Also present were Commissioners Brown, Fowler and
Keen. Commissioner Guthrie was absent. Staff members in attendance were
Community Development Director, Rob Strong; Associate Planner, Kelly Heffernon;
Administrative Assistant II, Lavonne Bradford.
APPROVAL OF MINUTES - The minutes of November 6, 2002 were unanimously
approved as written.
ORAL COMMUNICATIONS - None.
WRITTEN COMMUNICATIONS - None.
AGENDA REVIEW - Add to the agenda: Non-Public Hearing Item II.B. Discussion of
leadership, subcommittees and schedule of Task Force meetings. The topic was
carried over from the 5:30 - 7:00 PM session.
PUBLIC HEARING - PLANNING COMMISSION AND LOCAL HOUSING TASK
FORCE - HOUSING ELEMENT WORKSHOP.
PUBLIC HEARING OPENED
The following information was provided by Steve Devencenzi, representative from San
Luis Obispo Council of Governments (SLOCOG).
SLOCOG is responsible for developing the Regional Housing Needs Plan, per State
law, through the State of California's Department of Housing and Community
Development (HCD). Other Council of Governments throughout the State have
previously been through this process: The Association of Bay Area Governments
(ABAG) and Southern California Association of Governments (SCAG) went through this
process two years ago. The Association of Monterey Bay Area Governments (AMBAG)
when through this last year. The Santa Barbara Council of Governments (SBCAG) is
currently going through this process.
SLOCOG is responsible for assigning the units received from HCD to the local
communities. Each community is responsible to adopt a Housing Element, which is due
at the end of 2003. SLOCOG established a Regional Housing Needs Plan to allocate
housing needs amongst all communities in the county, which covers the period from
2001 to 2008 and includes various income levels.
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MINUTES PAGE 2
PLANNING COMMISSION
NOVEMBER 19,2002
California's Department of Finance gives population and housing projection numbers to
SLOCOG, who then allocates the housing numbers to the member jurisdictions.
SLOCOG has been questioning the validity of the numbers coming from the State
regarding population and employment projections.
The greatest challenge is how to address very low and low income categories. HCD's
viewpoint is that communities will need to zone for density of more than 20 units per
acre to accommodate development of those types of units. In developing the Regional
Needs Plan, SLOCOG is looking to identify existing needs by income distribution.
Jurisdictions must look at how to accommodate their fair shore of housing and plan for
them within the Housing Elements. Specifically" communities must look at the programs
that they are going to put into place to assist with those very low and low income
categories.
There are a number of HCD administered programs and several other public and
private financing programs in place that are dependent upon having a valid and
approved Housing Element. Arroyo Grande will not be eligible for any of these monies
if is doesn't have a State certified Housing Element.
SLOCOG will review the county-wide share distribution allocation formula at its
December meeting. After the Board adopts the Regional Housing Needs Plan, there is
a 30-day appeal period during which each community can appeal back to the SLOCOG
Board regarding their determination of each community's share.
SLOCOG's Board recognizes that it must accept HCD's allocation and approve a
Regional Housing Needs Plan or SLOCOG could potentially face litigation. Without an
approved Regional Housing Needs Plan, communities in San Luis Obispo County
cannot receive Housing Element Certification. If Arroyo Grande's Housing Element
does not incorporate the assigned share from SLOCOG, the community could be
targeted for litigation. This has begun to happen around the state, and public interest
law firms are targeting this arena. The cost of developing a well-crafted Housing
Element is probably substantially less than the cost of litigation if one isn't developed.
Rob Strong stated that the LHTF and Planning Commission's responsibilities to
determine quantifiable objectives to, meet the needs identified by the State of California
and SLOCOG. He indicated the following:
. LHTF's work program will provide the basis of a Housing Element;
. A Housing Element is a mandatory component of a valid General Plan;
. A valid General Plan is fundamental to the jurisdiction issuing building permits,
approving subdivisions, conducting most types of capital projects
. If (communities) don't have a valid General Plan there is potential of a total
shutdown.
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MINUTES PAGE 3
PLANNING COMMISSION
NOVEMBER 19,2002
Ms. Heffernon gave a brief presentation regarding the Local Housing Task Force work
program schedule and activities and proposed the following sub-committees:
. Workforce Housing
. Special Needs Housing - low income families, homeless, farm workers, seniors,
disabled, large families, single-parent households
. Constraints
- Governmental constraints: land use controls, zoning, development standards,
fees, improvement requirements, permit processing procedures, building
codes
- Non-governmental constraints: land costs, construction costs, availability of
financing
. Financial Resources - fees, fee waivers, housing trusts, land banking, land
donations, local taxes and revenues, mortgage credit certificates, municipal
bonds, private financing, development financing, tax credits
Chair Costello opened the meeting to public comment. No public comments were
offered.
Rob Strong presented a preliminary evaluation of Arroyo Grande's housing opportunity
sites (single and multiple family and mixed use), within the context of the City's General
Plan.
Commissioner Brown asked about conflict between the General Plan build-out number
and the State mandated number. Rob Strong replied that this is a dilemma that the
Housing Element must address.
Commissioner Fowler asked if Mobile Homes are included in the housing allocation.
Rob Strong indicated that the General Plan does accommodate mobile home parks.
After discussion, a recommendation was made to establish sub-committees per Ms.
Heffernon's recommendation. A continuation meeting was scheduled for Thursday,
December 5, 2002 at 4:00 p.m. to establish membership and leadership of sub-
committees and the goals and objectives of sub-committees.
PUBLIC HEARING CLOSED
ADJOURNMENT - There being no further business before the Commission, the
meeting was adjourned at 10:35 p.m. on a motion by Chair Costello, seconded by
Commissioner Brown, and unanimously carried.
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ATTACHMENT 2
MINUTES
CITY OF ARROYO GRANDE PLANNING COMMISSION
AND LOCAL HOUSING TASK FORCE
SPECIAL JOINT WORKSHOP MEETING
FEBRUARY 18, 2003
CALL TO ORDER - The Arroyo Grande Planning Commission met in regular session
with Commissioner Brown presiding. Also present were commissioners Fowler and
Guthrie. Vice Chair Keen and Commissioner Arnold, arrived at 6:35 P.M.. Staff
members in attendance were Community Development Director, Rob Strong and
Associate Planner Kelly Heffernon. Local Housing Task Force members in attendance
were: Larry Anderson, Roy Berger, Jerry Bunin, Michael Byrd, Lenny Jones, Mark
London, Carol Hatley and Steve Sanders and Ray Hetherington, consultant.
APPROVAL OF MINUTES - Minutes of January 21,2003 and February 4,2003 were
unanimously approved as written.
ORAL COMMUNICATIONS - Andrew Williams (Pat William's son) read a letter from
Otis Page regarding Smart Growth.
WRITTEN COMMUNICATIONS - Correspondence from the Local Housing Task Force
(LHTF) was provided to the Planning Commission at the start of the meeting.
AGENDA REVIEW - No change.
PUBLIC HEARING - ITEM ItA. 1. - 2003 HOUSING ELEMENT UPDATE -
WORKSHOP NO.2. Prepared and presented by Kelly Heffernon.
Kelly Heffernon gave a PowerPoint slide presentation titled "Compact Development and
Affordable Housing are not new concepts". The presentation showed pictures of
numerous affordable housing sites depicting that they can be attractively designed and
landscaped, enhancing the community.
LHTF Chair, Steve Sanders, provided an overview of the task force program and
presented the "Synopsis of Findings" and constraints and recommendations documents.
The task force and Planning Commission workshop evolved into a general discussion
that provided the following information:
Steve Sanders
. There is not sufficient funding for affordable housing.
. "Creation" of land is needed through rezoning (e.g., of commercial land),
increased densities, etc.
. The City needs to address housing for people with incomes between $0 to
$200K; 60% of people with median and below median incomes require direct
subsidies to buy a home.
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MINUTES PAGE 2
PLANNING COMMISSION
FEBRUARY 18, 2003
. Growth cannot be controlled or prevented; it will happen and must be planned
for.
. Income required to qualify for a home in this area is 200% of median income
(median income is $53,600). Hence, an income of $107,200 is required [200% x
53,600 = $107,200].
. Thrust of California State's goals is for people in this income range.
. There must be incentives to do affordable h~using; otherwise it won't happen due
to cost of building (land, permits, etc.).
Jerry Bunin
. Median house price in Santa Barbara County is $850K.
. Median price home sold in San Luis Obispo County was $375K in 2002.
. Median price home sold in Arroyo Grande in 2002 was $475K. Since November
2002, it has increased to $525K.
. People, earning $100K are having difficulty finding homes in the area.
. In mid-January there were 127 homes on the market in SLO County; only 20
were for less than $350K; everyone making median income that was looking for
a home was bidding on those 20 homes.
. SLO County is the only coastal county with a growth ratio where in-migration
supersedes birth/death ratio growth. In SLO the ratio is 4/1 (4=in-migration;
1=birth/death ratio); growth in other counties is mostly from birth/death ratio.
. Coastal counties are not building enough homes to meet the natural (birth/death)
ratio.
There was clarification about the LHTF presentation being a "draft". A decision was
made to schedule a follow-up meeting at which time the Planning Commission will
provide feedback to LHTF, then LHTF will create a more formal Housing Element
submission for the City.
Public Hearing Opened
Otis Page; 606 Myrtle Street
. Complimented the Local Housing Task Force on their progress.
. Housing is where the rubber meets the road - the citizens must be involved.
. There is an opportunity to almost fulfill California State's housing mandate with
the Williams property (200 acres). They are on record to the City with a letter
stating they can put 1,200 units at about $250K per unit. The profits would pay
for a new highway interchange. The City only needs 300 acres at 4.5 units per
acre to fulfill the State housing mandate.
. Increasing density will be a problem for the City. That is not the right answer.
We don't want the City to be filled with density, especially when we have
available open space.
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MINUTES PAGE 3
PLANNING COMMISSION
FEBRUARY 18, 2003
Greg McGowan, 330 Tally Ho
. Because we have a small town we have the opportunity to look at various
neighborhoods specifically. A one-size solution does not fit all situations in
Arroyo Grande.
. Focus on diversity and flexibility.
. It is crucial that we have Public Works and Engineering and other departments
evaluate the impacts of proposed solutions on resources.
Public Hearing Closed
PUBLIC HEARING - ITEM II.A.2. - SECOND RESIDENTIAL DWELLING UNITS.
Prepared and presented by Kelly Heffernon.
Kelly explained that new California legislation, Assembly Bill 1866, passed in
September 2002, goes into effect on July 1, 2003. AB 1866 requires a ministerial
application process for approving second units, and prohibits public hearings on permit
applications for second units. To comply with the new law, the City must revise its
existing Second Unit ordinance, which is related to the Housing Element; however, it
has a shorter timeline. Therefore it must done separately.
LHTF has reviewed what other communities are doing. Pismo Beach is furthest along
of all communities in the Central Coast. Kelly referred to Attachment 6, a Secondary
Dwelling Unit draft regulation from Pismo Beach and put forth a schedule outlining what
steps can be taken and the timeframe to meet the State's requirements.
The Planning Commission discussed the intent and purpose of developing an ordinance
for Secondary Dwelling Units. If the City does not develop stricter regulations, the City
must use regulations established by the State.
The discussion highlighted the following issues:
. Maximum height and square footage of secondary units:
- Avoid risk of lots becoming ,"flag lots" by limiting size of secondary units.
- Ensure size of secondary units is proportional to lot sizes.
- Use of primary residential unit lotlfloor area ratios to limit second unit size.
- Consider using percentage (%) of primary, residence size to determine
allowable size for secondary unit.
. Granny Units (the City does not have an ordinance for these and staff did not
have information that specified how a Granny unit differs from a Secondary unit).
. Slope density - changes the lot density and lot coverage.
. Impact on residential neighborhoods - perpetuation of rentals impact on zoning
and ambiance of neighborhood.
. Potentially many secondary units throughout the City that are not permitted due
to cost of impact fees.
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MINUTES PAGE 4
PLANNING COMMISSION
FEBRUARY 18, 2003
. LHTF recommended NOT using deed restrictions for secondary units because
they are not enforceable and are a potential problem for lending institutions. If
the goal is owner occupancy - the City would need a mechanism to support that
goal.
. Split meters (water, electricity, gas) and tiered rates.
. Secondary units are a way for new homeowners to afford a home.
. Impact on setbacks.
. Secondary units not to be sold separately from primary residence.
. Existing illegal secondary units - cannot enforce unless a complaint is received
and we investigate.
. Potential for increased restriction resulting in increased number of illegal
secondary units.
. Impact on parking in neighborhoods - significant issue that must be addressed.
. Ability to limit the number of secondary units within a neighborhood - may be
inequitable.
. Need to encourage alternative transportation and fewer cars - Santa Barbara
has rental reduction bonus for people without cars.
. Impact of secondary units on Home Owner's Associations (HOA's).
. Detached unit requirements - example, a 400 sJ. unit above a detached garage.
. Impact on character of neighborhood.
. Potential of using Secondary Dwelling Units to meet affordable housing mandate.
. Do CC&R's supersede the City's zoning? (staff to check with the City Attorney) -
CC&R's are independent of state and local regulations.
Public Hearing Opened
Steve Sanders (SESLOC), LHTF Chair
. Avoid overbuilding on the properties.
. Primary concern is to not allow building of secondary units that is out of character
with existing neighborhoods.
. Move away from concept of "Granny unit" (resident is a relative) to concept of
"affordable workforce housing".
Lenny Jones (Realtor), LHTF
. Cannot avoid impact of secondary units changing the make up of neighborhoods.
. Parking enforcement mechanism will be necessary and is important.
. Rarely sees illegal secondary units.
Harry Goodnight, 170 Vista Circle
. Home is on % acre abutting open space. Doesn't want secondary units to
change the original intent of the neighborhood.
. Bring affordable housing to other areas of the City. Doesn't want it forced upon
all neighborhoods.
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MINUTES PAGE 5
PLANNING COMMISSION
FEBRUARY 18, 2003
Greg McGowan, 330 Tally Ho
. Is there some data that can be used to evaluate and decide on square footage
for secondary units?
. He is a first time homeowner, a secondary unit is an option that would help him
financially to survive here.
. Concerned to hear that the City cannot enforce certain policies.
. His lot is 18,000 sJ., zoned RS - with a small house (1,000 sJ.) built in 1936 that
is made of rocks cemented together. It's charming, but...
. He may want to build a primary unit that is much larger and use the existing
structure as a secondary unit. He would want an ordinance that allows him the
option to do that.
Mike, Branch St.
. Used to live in Napa. Suggested checking to see if they have studies the City
can review.
Public Hearing Closed
ACTIONS:
1. Staff to check with Tim Carmel on CC&R's (do they supersede or supplement
state and local regulations).
2. Adjourned Meeting: Wednesday, February 26,2003 at 6:00 PM
. Secondary Units
. Feedback to Local Housing Task Force
PUBLIC HEARING - ITEM II.B. - CONTINUED ITEM - VILLAGE COMMERCIAL
DOWNTOWN DISTRICT BOUNDARIES. Prepared by Teresa McClish and presented
by Rob Strong.
Rob displayed five (5) alternatives for revised Overlay District 2.4 and asked for
Planning Commission recommendation.
Public Hearing Opened
Susan Flores, 529 E. Branch
. Would like the Village Core Downtown extended as shown in Alternative 5.
Public Hearing Closed
There was discussion about pros and cons related to extending the Village Core
Downtown, building heights, 2 or 3 story maximums and setbacks.
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MINUTES ATTACHMENT 3 PAGE 3
PLANNING COMMISSION
APRIL 1, 2003
The motion was approved on the following roll call vote:
AYES: Commissioners Brown, Arnold, Keen and Chair Guthrie
NOES: Commissioner Fowler
ABSENT: None
The foregoing resolution was adopted this 1 st day of April 2003.
PUBLIC HEARING ITEM II.B. - LOCAL HOUSING TASK FORCE (LHTF) -
CONTINUATION OF PUBLIC WORKSHOP NO.2 - HOUSING ELEMENT POLICIES.
Prepared and presented by Kelly Heffernon.
The Planning C9mmission asked the LHTF members several questions about their
recommendations and the potential impact on the City:
. Minimum density (multi-family intill projects) - Example: require a minimum
density in addition to maximum density for properties in "affordable housing"
zones (e.g., don't allow 1 unit on a 1 acre parcel that has high density
appropriate for affordable housing projects).
. Increased density makes units more affordable.
. Mobile homes vs. modular homes.
. Land costs are driving the high prices; not construction costs.
. Administrative approval of projects within 10% of development standards to
speed up processing and reduce administrative effort and costs, and to reduce
the impact of increasing land costs during approval processing.
. Allow 30 days for pre-application projects to shorten lead times.
. Development impact fees.
. Density bonuses - the General Plan (H 1-7) has a density bonus provision.
There was concern about wording of the recommendation. It was suggested that
the wording be changed to: "The City MA Y give a density bonus..."
. The LHTF report is missing a mechanism that spells out how to "plan to meet
State requirements".
. People with low-income levels should not be penalized for Appeals. Appeal fees
should not be raised - this could stifle a person's ability to be heard by the City.
. City shall defer collection of 75% of development impact fees:
o Commission asked, "What is the mechanism?"
o Commission prefers the wording, "The City may defer up to 75%..."
. How were ProForma numbers arrived at? How do they serve the Planning
Commission and City Council?
o Answer: they were intended to roughly show the impact of density.
. Builders want to provide more workforce housing. They need the ability to
determine through the process that they can still make a profit.
. Deferment of fees - deferred fees should be paid before a certificate of
occupancy is issued.
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MINUTES PAGE 4
PLANNING COMMISSION
APRIL 1, 2003
. Waived fees - would better serve the needs than deferral of fees. Quimby Act
sets land aside for recreational usage. Building inspection fees should not be
waived.
. Concern: more administrative approvals may generate more appeals.
. In lieu fees - still being considered by LHTF.
. Definition of "affordable housing" - has not completely been resolved.
0 The City needs a definition of affordable that can be used as an
enforcement tool.
. 200% median income does not address needs of low income.
. The Housing Element should spell out the enforcement mechanism by indicating
"who" will enforce affordable housing and "how" it will be enforced.
. Density bonus problems: setbacks and street requirements make it unfeasible.
Not ready to give away density bonuses except to achieve very low, low and
moderate income housing needs (to meet State mandate).
. Rentals in this county are not financially feasible.
. Secondary units are affordable - there is no additional land cost, the resident
property owners ensure maintenance, and other benefits.
. We can do something more than just satisfying the State.
Adriana Olsteen
- Provided affordable housing information to the Planning Commission.
- Local rate of pay: $8-12 per hour.
. Commissioner Guthrie - wants a portion of every project to go to very low, low
and moderate income families where density bonuses are given.
. This document must define very low, low and moderate as part of the planning
established in the final document LHTF prepares for the City.
. Must have incentives for contractors taking a loss on their projects.
. Fairly strong concerns about mobile home laws (Commissioner Guthrie indicated
that Mr. London knows the laws, but was not able to attend this meeting).
. Waiving fees - places burden on taxpayers and developers, there must be a
mechanism for making them up. Where is the benefit if they are simply included
in payments or otherwise still must be paid?
. Fees - need to be reviewed for dense projects.
. Bonds - did LHTF consider them?
Dean Coker
. Insurance companies will not insure construction projects for rental units.
. Encourage builders to "combine" parcels where development projects are
adjoining available and/or vacant parcels.
ACTION: Staff to check with the City Attorney about whether there is a Brown Act
conflict if PC members attend LHTF meetings without it being a Public
Hearing.
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MINUTES PAGE 5
PLANNING COMMISSION
APRIL 1, 2003
. The Planning Commission wants LHTF policies and bonuses to be tied to the
very low, low and moderate income level solutions/proposals.
Commissioner Brown made a motion, seconded by Commissioner Arnold to continue
the workshop to Thursday, April 3, 2003. The motion was approved on the following roll
call vote:
AYES: Commissioners Brown, Arnold, Fowler, Keen and Chair Guthrie.
NOES: None
ABSENT: None
PUBLIC HEARING - ITEM II.C. - DEVELOPMENT CODE AMENDMENT CASE NO.
02-006 AND GENERAL PLAN AMENDMENT CASE NO. 03-001; APPLICANT - CITY
OF ARROYO GRANDE; LOCATION - VILLAGE OF ARROYO GRANDE. Prepared
and presented by Teresa McClish.
The Planning Commission discussed the following items related to this project:
. In response to questions from Commissioners, Teresa and Rob explained why a
General Plan Amendment is needed at this time and the reasons for zoning
changes within the Village area.
Chair Guthrie opened the Public Hearing.
Nancy Underwood, 125 Short Street, resident for 30 years
. Sign at 125 Nelson indicated that the project is being discussed tonight.
. Against Mixed Use zoning.
. Concerned about impact on character of the Village, taking the community away
from older home atmosphere.
. Against 0 ft. setbacks, obstruct views of neighboring homes.
. Parking concerns; density of multi-use zoning.
. Business hours operation is a significant concern due to the impact of noise on
the Village residents.
. The City needs to protect the character of Village and tourism.
. Need more restrictions for properties where Mixed Use is implemented.
Chuck Fellows, 507 Le Point Street
. Mixed Use zoning, what are the allowed mixed uses and how will mixed use
impact the Village character? For example, the proposed 125 Nelson Street
project with 5 commercial and 7 residential units.
. Mixed Use area seems to be getting larger.
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ATTACHMENT 4
MINUTES
CITY OF ARROYO GRANDE
SPECIAL MEETING - PLANNING COMMISSION
MAY 20,2003
CALL TO ORDER: The Arroyo Grande Planning Commission met in regular session
with Chair Guthrie presiding. Also present were Commissioners Arnold, Brown and
Fowler. Commissioner Keen was absent. Staff members in attendance were Associate
Planner, Kelly Heffernon and Jim Bergman, Planning Intern.
AGENDA REVIEW: Item II.B. was heard first - continued item.
APPROVAL OF MINUTES: The minutes of April 30, 2003 were approved as written on
a motion by Commissioner Brown, seconded by Commissioner Arnold.
ORAL COMMUNICATIONS: None.
WRITTEN COMMUNICATIONS:
1. City of San Luis Obispo Affordable Housing description.
2. Letter from Camino Mercado Partners, LP, regarding the Camino Mercado traffic
signal CIP project.
PRESENTATION - VISUALIZING DENSITY:
Jim Bergman, Planning Intern gave a power point presentation on Higher Density
Housing on the Central Coast.
PUBLIC HEARING ITEM II.B: CONTINUED ITEM - DEVELOPMENT CODE
AMENDMENT CASE NO. 02-006 AND GENERAL PLAN AMENDMENT CASE NO.
03-001; APPLICANT - CITY OF ARROYO GRANDE; LocATION - VILLAGE OF
ARROYO GRANDE
The Commission unanimously agreed that the item be rescheduled and renoticed for
the meeting of June 17, 2003.
PUBLIC HEARING ITEM II.A: 2003 HOUSING ELEMENT UPDATE - WORKSHOP
NO.3 (DRAFT HOUSING ELEMENT PROGRAMS). Staff report prepared and
presented by Kelly Heffernon, Associate Planner.
Ms. Heffernon gave a brief summary of the Housing Element Policies and Programs.
She then introduced members of the Task Force who were present.
The Commission reviewed the Strategies, Goals and Policies worksheets and a
discussed the background information contained in the Preliminary Draft Housing
Element with the Task Force. Some of the highlights of the discussion on the Strategies
focused on:
. The importance of the issue of the leveraging of affordable housing funds.
. The difficulty of deciding on establishing a minimum residential density "no lower
than 50 percent of the maximum density allowed in each zone" with the task force
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MINUTES PAGE 2
PLANNING COMMISSION
MAY 20, 2003
stating that builders need predictability to overcome a sense of reluctance and in
single family zoning it is more difficult to achieve this.
. The City's annual report should include produced units from each of the classes of
affordable units.
The Commission next commented on each of the nine (9) Goals and Policies proposed
to be incorporated into Chapter 2 of the Housing Element:
Goal I. - Increase the rental housing supply for families meeting the state's
definitions of livery low" and II10w" income levels:
. No. 4 - would this include waiving of school fees? The task force answered that
school fees are a separate issue, but that the City of San Luis Obispo has
deferred or waived impact fees for elderly housing.
. With regard to the density bonus when establishing zoning requirements for
Mixed-Use areas, the zoning should be looked at in order to set a starting point
to make sure the maximum number is reasonable.
Goal II. -Increase the supply of moderately priced housing for ownership:
. There was a concern that creating more mobile homes might not be a good idea
and a suggestion to change the word "shall" to "may" throughout Goal II.
. The height limit should be three stories.
. It would be important to review road width when density bonuses are being
considered.
. Shared parking areas for residential developments close to commercial areas
could be considered and in some cases as an overlay in residential areas.
. Would the reduction on senior housing parking be increased beyond the present
reductions?
. Small lots in residential areas could be consolidated to increase density.
. No. 10 - It was suggested that all the density bonuses should be in table form for
clarification.
John Schoals, 1185 Encinitas Court, Councilman Grover Beach, stated that:
. Consolidation of infill lots may require help from the City, especially in
redevelopment areas.
. Parking districts should be based on a specific situation; mixed use and commercial
is fine, but for residential areas one would have to be vary careful where parking
districts would be placed.
. He suggested for blighted areas teaming up with the Housing Authority or People's
Self Help Housing for assistance.
Goalm - Create clearer regulations and streamline the approval process.
. 1.a. - There was a concern that the cost of an appeal would preclude individuals that
did not have the financing to do this.
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MINUTES PAGE 3
PLANNING COMMISSION
MAY 20,2003
. There was consensus that the word "shall" be changed to "may" and the
Commission requested further discussion on this.
Goal IV - Condominium conversions shall be regulated both to protect the City's
supply of apartments and to allow more moderately priced for-sa/e homes.
. Would like to see language added stating "no net loss in the percentage of
apartment rentals".
Goal V - Apartment construction shall be encouraged.
. There is a movement in the State to encourage this.
. Suggestion to allow a 10 or 20 year term (after which there would be no liabilities) for
an affordable apartment after which it could be converted to condominiums to give
incentives to builders.
. Suggest that land could be rezoned so only apartments could be built.
. Suggest also some trading could be allowed.
. The City could set up specific land zones for tax credit projects for low and very low
income.
Goal VI - The City's Inclusionary Housing Ordinance shall be revised.
. No.1. - Commission agreed that 10% of every residential project was reasonable.
Goal VII - The City shall develop a policy to maintain long-term affordability on
rental and for-sale units that are built with a density bonus or other government-
provided incentive(s).
. There needs to be firm implementation measures clearly stated.
. Specifics clarified who would do the monitoring.
. If a qualified buyer chooses to rent there should be restrictions on what could be
charged for rent (to make sure it remains affordable).
The task force answered:
1. Deed restrictions are being used to monitor this -language must be used to allow
the lender the potential to foreclose when necessary. (The Commission asked
that the task force provide City staff with specific language.)
2. The regulatory agency (such as the City or Housing Authority) can monitor the
agree~ents - most of the regulatory agreements will restrict the homeowner from
renting their property.
3. With single-family homes a Deed of Trust (to the City) is recorded which would
reflect an amount to be paid equivalent to the difference between the affordable
price and the market price. In effect the City would be notified of a pending sale.
The Commission and Task Force then discussed silent seconds. John Schoals stated'
that Grover Beach has been reviewing each situation on a case-by-case basis.
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MINUTES PAGE 4
PLANNING COMMISSION
MAY 20, 2003
Goal VIII. - The City shall identify various financing alternatives to provide
affordable housing for households earning up to 120 percent of the area median
income.
. The Commission was opposed to the City issuing bonds to finance moderate priced
housing unless they were actually buyer owned.
The task force explained that:
. If you are a moderate-income person you cannot qualify for any of the State
bonding money that is available at lower interest rate, but the City can create their
own financing pool to lend to a moderate-income person at a lower rate.
Goal IX. - The City shall develop incentives to encourage builders to create
homes for households earning 200 percent of area median income and below.
. No. 1 - Should read, "the City may (not shall) grant a density of 20 percent....
. No. 2 - The Commission did not consider this a viable policy and felt it would
have a negative impact.
. The Commission suggested that policies 1 & 2 be combined and reworded.
Task Force Comments:
. This policy was to help provide incentives for builders not to build at the top of the
market.
Chair Guthrie called for a 10-minute break.
Ms. Heffernon informed the Task Force that the City Council would like to give
recognition to them on their hard work at the Council meeting of June 24, 2003.
Ms. Heffernon then asked the Commission to hear Non-Public Hearing Item UI.A. after
the break and before completing the discussion on item II.A. The Commission agreed.
NON-PUBLIC HEARING ITEM UtA - CAPITAL IMPROVEMENT PROGRAM (CIP)
FOR THE FISCAL YEAR 2003/04. CIP report prepared by Public Works.
The Planning Commission reviewed the fiscal year 2003/04 Capital Improvement
Program for consistency with the General Plan.
Don Spagnolo, Public Works Director, gave a short presentation explaining the report,
receiving comments and answering questions from the Commission.
Commissioner Arnold asked when the Rancho Grande Park would be completed. Mr.
Spagnolo said it would probably be the Fall.
Commissioner Brown asked if all the projects identified for this year would be started?
Mr. Spagnolo said he believed all the identified projects would happen.
Commissioner Fowler had the following comments and questions:
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PLANNING COMMISSION MINUTES ATTACHMENT 5
JULY 1,2003
PAGE 4
AYES: Commissioners Brown, Fowler and Chair Guthrie
NOES: None
ABSENT: Commissioner Arnold and Keen.
the foregoing resolution was adopted on this 1 st day of July 2003.
PUBLIC HEARING ITEM II.D: AMENDED CONDITIONAL USE PERMIT (ACUP)
CASE NO. 03-003; APPLICANT - CAMINO MERCADO PARTNERS, LP; LOCATION
- 597 CAMINO MERCADO. Staff report prepared and presented by Kelly Heffernon,
Associate Planner.
Ms. Heffernon stated this proposal was for consideration of amended plans for sixty (60)
two-bedroom senior apartments. She requested the ACUP be continued to the August
5, 2003 meeting, explaining the reasons for the request.
Commissioner Brown made a motion, seconded by Commission Fowler to continue the
hearing to the meeting of August 5, 2003. The motion was approved on a 3/0 voice
vote, Commissioners Arnold and Keen being absent.
PUBLIC HEARING ITEM II.E - 2003 HOUSING ELEMENT UPDATE, WORKSHOP
NO.4. Staff report prepared and presented by Kelly Heffernon, Associate Planner.
Ms. Heffernon gave an update on the Housing Element programs and explained that
the focus of the Commission at this workshop would be on the Goals and Policies in
Chapter 2. She' then asked the Planning Commission if they could schedule a special
meeting on July 29, 2003 to discuss the programs.
The Public Hearing was opened.
Hal Rosen. Local Housing Task Force (LHTF) member, commented on the goals and
policies A2, AS, A8, A12, 81, B4 & E4. He had questions to staff regarding inclusionary
housing (F-1).
Jerrv Bunin. LHTF member, stated that in-lieu fees can be a valuable resource kept at a
reasonable level and that inclusionary housing has only created 800 units in the State.
Ed Dorfman. 285 La Cresta, stated that there is an urgency to plan for growth; in-lieu
fees can never provide enough money for housing; the City "should" annex land; agreed
with Mr. Rosen that you should not put lower income people in higher cost housing
areas; suggested using bonds to raise money; believes inclusionary housing does not
work.
The Public Hearing was closed.
The Commission then reviewed and commented on the goals and policies where
applicable.
___ __ _________'n___
PLANNING COMMISSION MINUTES
JULY 1, 2003
PAGE 5
Chair Guthrie commented that in our community in-lieu fees have not worked, but
inclusionary housing has worked.
The Commission stated they would like to return to continue discussion of these items
and the programs on July 29, 2003 when all Commissioners would be present.
PUBLIC HEARING ITEM II.F - CONTINUED ITEM: STAFF PROJECT CASE NO. 03-
004 - AGRICULTURAL CONSERVATION; APPLICANT - CITY OF ARROYO
GRANDE; LOCATION - CITY OF ARROYO GRANDE. Staff report prepared and
presented by Teresa McClish, Associate Planner, and Jim Bergman, Planning Intern.
Ms. McClish gave an overview of the report, addressed the policy alternatives
concerning the conservation of prime agricultural lands in Arroyo Grande and stressed
that this document is still a draft.
The Commission had no questions and the hearing was opened to the public.
Bill McCann. 575 Crown Hill, congratulated staff on the report. He stated the goal of the
City should be to maintain every bit of the 235 remaining acres of prime soils
designated for agricultural use and that the City should be a leader in any efforts to
maintain this resource. He would like to see some simplified programs - not
cumbersome to administer.
Nick Alter. 354 Corbett Canyon Road, referred to his comment letter regarding the staff
report.
Ed Dorfman, 285 La Cresta, commented that the rules were being changed in the
policies of City of Arroyo Grande, they were in total in opposition of the real world and
represent the policies of people who have homes and like open space. He suggested a
bond issue to buy conservation easements. He stated that some small parcels are not
being farmed and would make excellent housing sites.
Chuck Fellows. 202 Canyon Way, asked what other jurisdictions addressed Public
Relations concerning agricultural conservation - raise bond issue.
Ella Honeycutt. 561 Hausna Road in response to Chuck Fellows stated that the grape
growers and greenhouse advocates have done a good job with P.R. and that an Ag
Tourism map is due out soon.
Howard Mankins. 200 Hillcrest Drive, commented on the strong language used in the
Purpose and Findings handout and said that nothing is permanent if it is unreasonable,
asked where were the farmers tonight and stated that a church cannot be precluded on
agricultural land according to Federal law.
Chair Guthrie closed the public hearing and Ms. McClish answered Commission
questions.
_.~-~------ ___ _~___'m ------- ------~----~~
ATTACHMENT 6
MINUTES
CITY OF ARROYO GRANDE PLANNING COMMISSION
JULY 29, 2003
CALL TO ORDER - The Arroyo Grande Planning Commission met in special session with
Chair Guthrie presiding. Present were Commissioners Arnold, Fowler, and Keen.
Commissioner Brown was absent. Staff members in attendance were Community
Development Director Rob Strong and Associate Planner Kelly Heffernon.
APPROVAL OF MINUTES - No minutes to approve.
ORAL COMMUNICATIONS - None.
WRITTEN COMMUNICATIONS - Jerry Bunin introduced the Home Builders Inclusionary
Housing document, which was given to the Planning Commission at beginning of meeting.
The document summarizes what jurisdictions in California are doing to get affordable
housing units built.
AGENDA REVIEW - No changes.
PUBLIC HEARING - ITEM ItA. - 2003 HOUSING ELEMENT UPDATE WORKSHOP NO.
5. Prepared and presented by Kelly Heffernon, Associate Planner.
Kelly Heffernon indicated the purpose of the meeting is to revisit the Housing Element's
goals and policies to ensure that they are appropriate and acceptable so the formal
public hearing process can be initiated.
Kelly noted the following:
. Housing Element - Chapter 3 was separated into 3 separate chapters because it
was so large.
. Revised Table 15 - Preliminary Housing Opportunity Sites Inventory is included
in the handouts with corrections to some of the calculations. Table 15 is a first
attempt at providing quantifiable objectives for determining a realistic forecast or
expectation of housing development opportunities.
Chair Guthrie indicated that the meeting is an informal discussion of the Housing
Element.
The Planning Commission, Staff and a few members of the Local Housing Task Force
reviewed the Housing Element document. The Planning Commission asked Staff to
provide clarification of some terms. They also asked Staff to do additional research and
provide additional statistical information to support some sections of the Housing
Element.
---~._.,-------- ~--~--.~----------
MINUTES '
PLANNING COMMISSION PAGE 2
JUL Y 29, 2003
The following sections of the Housing Element were discussed:
1. Section 2.1. Goal A - A4: Request for clarification about impact of "minimum
residential densities" when an owner may want only one unit on a large lot that
could be split into multiple parcels. Rob Strong provided an example: this
would prevent a property owner from splitting a lot into only 3 parcels if the
minimum residential density is 10 units.
2. Section 2.1. Goal A - A3: Request for definition of "priority processing". Staff
indicated that priority may be given if the project was already in process or was
on a waiting list, this would allow them to get on an agenda more quickly.
Projects are currently handled on a "first come, first serve" basis.
3. Section 2.1. Goal A - A8: The Planning Commission approved use of the word
"may" instead of' "shall". ("The City may annex land on the urban edge to
promote orderly growth and the preservation of open space.")
4. Section 2.1. Goal A - A10 and A10-1: Concern about reduction of parking
requirements for Low and Very Low income homes, because lower income
families often have multiple vehicles. A general parking reduction would be
reviewed based on housing type. Chair Guthrie requested inclusion of review
of the Urban Tree Ordinance and Parking Standards and information about
how they can be implemented.
5. Section 2.1. Goal A - A11. 4th bullet: Concern that the wording in this section
does not appropriately target density bonuses for affordable housing. Chair
Guthrie asked if density bonuses could be tied to the sales price of homes, not
the buyers' income levels. Rob Strong suggested that instead of earnings
between 120 to 200 ($74.4k to $124k respectively) percent of county median
income (workforce housing), the range could be 120 to 160 ($74.4k to $99.2k)
or 170 ($105.4k) percent of median income.
6. The Planning Commission asked for the definition of "workforce" to be clarified.
Rob Strong said that Staff can come back to the Planning Commission with the
following and add to the policy with examples in September:
. What part of the workforce is in the range of 120 to 160 percent of the
income levels, and what type of workforce (e.g., Police officers, Firemen,
teachers, etc.) the income category covers.
7. Section 2.1. Goal B - B.1: Regarding City-approved programs to maintain
affordability, does the State require a period of 40 years rather than 30 years?
Voluntary response survey of Non-Profit Housing Association of Northern
California and California Coalition of Rural Housing shows evidence that most
jurisdictions are using a longer length of affordability period than Arroyo
Grande, which uses 30 years. Some jurisdictions use 40 to 60 years or are
perpetual. Some jurisdictions require Affordability Agreements (duration of 30
--------- -- ------
MINUTES
PLANNING COMMISSION PAGE 3
JULY 29, 2003
or more years) to be renewed upon sale each time an affordable home is sold
within a 30-year period.
8. Section 2.1. Goal 8 - 8.4: In favor of height limit that allows 3 or 4 stories.
9. Section 2.1. Goal 8 - 8.3-1: Ask Tim Carmel if the City can restrict waiver of in-
lieu fees for Arroyo Grande residents only.
10. Section 2.1. Goal 8 - 8.3-2: Move from the beginning of 8.3-1 to the beginning
of 8.3-2: "To the extent that housing set aside or in-lieu funds are available, ...".
A discussion took place regarding whom would be eligible for a fee waiver - if it
isn't a local workforce person, what is the City achieving? This can be
researched from a legal perspective.
11. Section 2.1. Goal C - C.3. C.4. C.5: These all require an agency that doesn't
currently exist.
12. Section 2.1, Goal D - D.1-1: Chair Guthrie stated that in order to do an
apartment district; the City would need to do an annexation. Otherwise, there
would be a downgrading of existing property. There was discussion about
parking allocations for apartment complexes.
13. Section 2.1. Goal E: These policies assume that the current number of
apartment buildings is the correct number of apartment buildings. There are
huge restrictions. 8ased on these restrictions there may not be any
conversions.
14. Section 2.1. Goal E - E.4-1: Six years seems too short of a time period. Use
30 years and possibly different percentage levels of shared equity. Or, perhaps
use a sliding benefit (e.g., 100% to the City within "x" years and after "x" years
share equity at 50:50). Various options were discussed. The Commissioners
asked staff to clarify how this would be implemented.
15. Section 2.1. Goal F - F.1 : Wording should be: "up to nine (9) units".
16. Section 2.1. Goal F - F.2-1: Second paragraph, eliminate "very low and low"
verbiage. The difference between the median price home ($475K) and
moderate-income price home ($294K) divided by 10 could be the fee ($475K -
$294K = $181/10 = $18.1K); fee adjusted quarterly. A formula fee could be
established for very low and low income. Perhaps the fee could be collected
when the Certificate of Occupancy is issued; fee adjusted monthly.
17. Section 2.1. Goal F - F.3-1: Small jobs increase the demand for low-income
housing, and that's what we're trying to solve. If low-income jobs are being
created we need to have something in the process that creates low-income
housing. The policy bases in-lieu fees on construction costs. Consider a
different formula, for example, base the fees on the number of jobs created per
MINUTES
PLANNING COMMISSION PAGE 4
JUL Y 29, 2003
square foot of commercial space, or one fee per 15 jobs. Kelly said the City of
San Luis Obispo requires commercial development to contribute to affordable
housing; one affordable dwelling unit per acre, but not less than one affordable
dwelling unit per project or an in-lieu fee of 2%. Commissioners said to change
2,500 square feet to 7,500 square fee and asked staff to survey other agencies.
18. Section 2.1. Goal F - M.1: Add "and local" after "state". Policy should read, "All
new dwelling units shall be required to meet current state and local
requirements for energy efficiency. The retrofitting of existing units shall be
encouraged."
19. Section 2.1, Goal F - 0.2: Change "shall" to "may".
20. Section 2.1. Goal F - 0.3: Research to find out if the City is required by law to
provide an interpreter. If not, eliminate this policy.
21. Commissioners asked staff to find out from the State how the City can qualify
secondary dwellings as counting towards the Regional Housing Needs
Allocation. Does the City need to impose a 30-year deed restriction?
22. 4.2 Summary of Quantified Objectives: Change "767" to "667".
Kelly asked the Planning Commission for approval of the proposed schedule included in
the staff report.
III. NON-PUBLIC HEARING ITEMS: None
IV. DISCUSSION ITEMS: None
V. PLANNING COMMISSION ITEMS AND COMMENTS: None
VI. COMMUNITY DEVELOPMENT [)IRECTOR COMMENTS/FOLLOW-UP: None
ADJOURNMENT: There being no further business before the Commission, the meeting
was adjourned at 9:00 p.m. on a motion by Commissioner Arnold, seconded by Chair
Guthrie and unanimously carried.
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ATTACHMENT 7
I "'B.B.OYO GB."']f])E
, '" HOVSII"
" -, TASK FOIl€E
---':I
STRATEGIES. GOALS and POLICIES
May 20, 2003
Overall strategies: To increase rental and ownership opportunities
A. The City shall initiate a real estate transfer tax with the money placed into a
specific fund used to provide affordable housing;
B. The City shall increase the transient occupancy tax with the money placed into a
specific fund used to provide affordable housing;
C. If there is any countywide real estate transfer tax or a transient occupancy tax to
fund affordable housing programs, the city tax( es) would be decreased by a
corresponding amount;
D. All projects that receive additional densities in exchange for providing affordable
housing shall be placed into a city-approved program to maintain the affordability
for at least 30 years;
E. The City shall require monitoring of affordable units to ensure ongoing
compliance with the price controls established in the agreement between the City
and the developer;
F. The City shall establish a minimum residential density that is no lower than 50
percent of the maximum density allowed in each zone;
1. Exceptions would be made for property with significant environmental
constraints;
G. The City shall encourage mixed,:"used projects with residential components on
land zoned for non-residential uses;
H. The City shall rezone appropriate non-residential land for residential uses;
I. The City shall maintain a list of vacant land;
J. The City shall prepare an annual report detailing progress on implementing the
Housing Element and creating the targeted number of housing units.
1
"~~---~
I. Goal: Increase the rental housing supply for families meeting the
state's definitions of "very low" and "low" income levels
Policies
1. The City shall grant, in designated mixed-used corridors such as Grand A venue, a
density bonus above the state 25 percent standard for projects serving households
meeting state defmed very low and low income levels (The state requires a 25
percent density bonus for projects that provide either 10 percent of the units for
very low income, 20 percent of the units for low income or 50 percent of the units
for senior citizens.);
2. The City shall grant a density bonus of at least 50 percent for residential projects
in which at least 25 percent of all units (including the density bonus units) meet
state definitions for very low and low income levels;
3. The City shall allow farm worker housing on non-prime agricultural land;
4. The City shall reduce, waive or defer collection of 100 percent of development
impact fees for very low and 75 percent for low income housing units.
II. Goal: Increase the supply of moderately priced housing for
ownership
Policies
1. The City shall assume regulatory control from the state for manufactured housing,
manufactured home parks and mobile home parks;
2. The City shall create mobile home and manufactured home park zoning;
a. Existing mobile home and manufactured home parks shall be reviewed
and rezoned for the above zoning where appropriate;
b. The City shall seek opportunities to create more mobile home and
manufactured home parks;
3 ~ The City shall annex land on the urban edge to promote orderly growth and the
preservation of open space;
4. The City codes and staff shall consistently encourage creative housing solutions.
2
-,,----,---------- - _______'n_o_______
5. The City shall re-evaluate setback, landscaping, parking, lot coverage, floor-area
ratio, open space and height requirements that prevent builders from achieving the
currently allowed or any bonus densities;
6. The City shall modify the height limit to accommodate three or more story structures
in appropriate zoning;
a. The City shall develop fire suppression policies to accommodate the new
height standard;
7. The City shall look for innovative ways to provide open space such as using
courtyard design;
8. The City shall establish parking districts where appropriate to encourage additional
density;
9. The City shall reduce parking requirements for projects providing senior or special
needs housing;
10. The City shall grant a density of 30 percent for residential projects in which at least
20 percent of all units (including the density bonus units) will be sold to households
earning between 80 percent and 120 percent of area median income.
ill. Goal: Create clearer regulations and streamline the approval process
Policies
1. The City shall allow the staff to grant administrative approvals for all projects that
are within 10 percent of the development standards;
a. The fee for appealing such approvals to the City Council shall equal the
cost of holding the public hearing;
2. The City shall call pre-application meetings involving all relevant City staff,
builders, related government agencies and community stakeholders within 30 days
of the submittal of the initial application.
3
-~---- --------- -------- -~-------- -~-
IV. Goal: Condominium conversions shall be regulated both to protect
the City's supply of apartments and to allow more moderately
priced for-sale homes
Policies
1. Apartments can only be converted and sold as condominiums to families earning
state-defined low or moderate income levels;
a. The conversion shall be subject to monitoring of affordable units to ensure
ongoing compliance with the price controls established in the agreement
between the City and the developer;
2. The City shall set a limit on how many rental units can be converted annually;
3. The property owner shall give the current residents the right of first refusal to buy
the units being converted, providing they meet the income guidelines;
4. All conversion units shall be placed in an equity share program in which both the
City and homeowner benefit.
V. Goal: Apartment construction shall be encouraged
Policies
1. The City shall create a specific land use zone for apartments;
2. The City shall reduce parking requirements for all apartments:
a. Studio units would require one parking space;
b. One bedroom units would require one and a half spaces;
c. Two bedroom units and above would require two spaces.
3. For the purposes of calculating density, fees and other development standards,
an apartment is defined as:
a. A unit equals two bedrooms or more;
b. A one-bedroom equals 0.7 of a unit and is defined as 850 square feet
or less;
c. A studio equals 0.5 of a unit and is defined as 600 square feet or less.
4
---'-------~-~-,~.--~
VI. Goal: The City's inclusionary housing ordinance shall be revised
Policies
1. The City shall require that 10 percent of every residential project greater than two
units be inc1usionary housing units;
a. An inc1usionary unit is defined as one that will meet the state's standards
for affordable housing;
b. Builders shall receive a density bonus equal in number to the inc1usionary
requirement;
2. The City shall offer multiple options for providing the inc1usionary unit(s) if the
projects are proposed for land or neighborhoods unable to sustain the bonus density
as follows:
a. Donate an amount of buildable land equivalent in value to providing the
unit(s);
b. Pay a fee equivalent in value to providing the unit(s).
3. An-lieu inc1usionary fee shall also be charged on commercial/industrial
construction.
VII. Goal: The City shall develop a policy to maintain long-term
affordability on rental and for-sale units that are built with a
density bonus or other government-provided incentive(s).
Policies
1. Rentals:
a. Projects where there has been any City incentive shall be maintained as
affordable for at least 30 years by regulatory agreement;
b. The City shall take the necessary steps to assure compliance with the
regulatory agreement, including consideration of joining a regional
monitoring agen~y if one is developed;
5
---
----- -------
2. For sale:
a. Deed restrictions shall be used to maintain long-term affordability;
1) The restriction shall conform with standard lending requirements;
2) No resale, refmance or property title transfer, etc. can occur without
City approval.
VIII. Goal: The City shall identify various financing alternatives to provide
affordable housing for households earning up to 120 percent of
the area median income
Policies
1. The City shall create a list of public and private sources to help fmd creative
funding solutions for the provision of moderate priced housing and below;
2. The City shall consider issuance of bonds to finance moderate priced housing and
below;
3. The City shall aggressively pursue state and federal grants to finance moderate
priced housing and below;
IX. Goal: The City shall develop incentives to encourage builders to create
homes for households earning 200 percent of area median
income and below
Policies
1. The City shall grant a density of 20 percent for residential projects in which at least
20 percent of all units (including the density bonus units) will be sold to households
earning between 120 percent and 200 percent of area median income;
2. The City shall limit the total number of above moderate income housing to the 400
units in the state Regional Needs Housing Allocation until 60 percent of the very
low, low and moderate allocations are permitted.
6
-- -.---.---....---.--.---
MINUTES A TT ACHMENT 8 PAGE 7
PLANNING COMMISSION
SEPTEMBER 2, 2003
Commissioner Brown made a motion, seconded by Commissioner Arnold to continue the
meeting to a date uncertain. The Commission unanimously agreed to the motion on a 5/0
voice vote.
PUBLIC HEARING ITEM II.D. - GENERAL PLAN AMENDMENT CASE NO. 03-005;
HOUSING ELEMENT UPDATE; APPLICANT - CITY OF ARROYO GRANDE; LOCATION
- CITY OF ARROYO GRANDE. Staff report prepared and presented by associate Planner,
Kelly Heffernon.
Ms. Heffernon gave her presentation stating that this is the first formal public hearing on the
Draft Housing Element and staff has revised the document for Commission discussion and
review from workshops and has submitted it to the State Department of Housing and
Community Development for their technical review. Ms. Heffernon then addressed some of
the changes with regard to issues addressed in the staff report and Commission comments
and went on to explain some of the tables included in the Housing Element Update. She
introduced Ray Hetherington, consultant, to answer Commission questions.
Commissioner Brown and Commissioner Keen asked for some clarification, as they were
absent from some of the workshops.
Ms. Heffernon clarified how the 30-year deed restriction would be monitored.
Commissioner Arnold:
. Can the City restrict waiver of in-lieu fees for the residents of the City of Arroyo
Grande only? Ms. Heffernon replied that the City Attorney said this would be
discriminatory, but there are some ways that priorities can be created to allow this,
such as a lottery or rebates.
Commissioner Keen stated that if the City of Arroyo Grande created bonding or were taxed
to provide affordable housing then he would be disappointed if people from outside the area
took advantage of this.
Ms. Heffernon suggested that the Commission insert some creative language regarding this
issue into the Draft document for the City Attomey to review specifics for legality.
Jerry Bunin, Building Association, asked if there was an in-lieu fee included for residential
construction if a builder does not want to build the inclusionary units? Ms. Heffernon said
the in-lieu fee had not been eliminated for less than nine units. Mr. Bunin said it would not
be a good idea to eliminate the in-lieu fee, as there would be some advantages for small
projects. Ms. Heffernon said Program F.2-1 in the document gives alternatives.
Commissioner Arnold: Section 2.1, Goal E - E.4-1, asked that language reflect using the
30 years having this continue to be included. Ms. Heffernon said language to reflect a
rollover when sold could be included in Policy B.1. In addition, he would like to see included
how commercial businesses may be paying an in-lieu fee. Ms. Heffernon said that Program
F.3-1 was amended to read that the City shall conduct a feasibility study to determine the
appropriate inclusionary housing requirement for commercial development.
PLANNING COMMISSION AGENDA A TT ACHMENT 9 PAGE 5
TUESDAY, OCTOBER 21, 2003
Commission Comments:
. Concern that there be some yard area on these lots.
. Not in favor of flag lots, but could not see how this would work any other way.
. Liked the logic for only allowing the merging of lots on the outside edge that face the Mixed-
Use area.
The Commission said they would be in favor of this project.
PUBLIC HEARING III.B. - GENERAL PLAN AMENDMENT CASE NO. 03-005; APPLICANT -
CITY OF ARROYO GRANDE HOUSING ELEMENT. Staff report prepared and presented by
Associate Planner, Kelly Heffernon.
Ms. Heffernon stated that the City had held $ix workshops to study the Housing Element Update.
The last one was on September 2, 2003 and the following Planning Commission recommended
changes had been made:
. The 30-year rollover when the property changes hands; creating more perpetual affordable
units.
. Reductions in impact fees.
Ms. Heffernon stated that the State Department of Housing and Community Development (HCD)
had just faxed their comments on the Housing Element to the City; she distributed copies to the
Commission.
Chair Guthrie recommended that the State's recommendations not be considered this evening as
they had no had time to study it.
Commissioner Brown:
. He would like to see specific language relating to which agency would be monitoring the
affordable housing.
. He had concern with the language in the Hou'sing Element regarding density bonuses
containing "shalls" that may allow greater densities than he would be comfortable with.
Commissioner Arnold:
. Commercial requirement for housing? Ms. Heffernon replied that Commercial inclusionary
will be researched further because it is more complex; the' City Attorney will be reviewing
this in detail before it goes to City Council.
. B.3-2, page 10: Does not think any of the fees on above moderate or "work force housing"
should be waived.
Commissioner Keen:
. B.3, Page 8: Language should be changed to state - ... or defer collection of impact fees
for "very low, low and moderate income housing units".
Chair Guthrie agreed with Commissioner Brown and stated he also had a concern that there would
not be an agency in place to monitor the affordable housing, and also agreed with Commissioner
Arnold that he is not in favor of waiving impact fees for moderate income housing, and is only in
favor of reducing impact fees for the low and very low; density bonuses should be sufficient
incentive.
-----------,
PLANNING COMMISSION AGENDA PAGE 6
TUESDAY, OCTOBER 21,2003
After discussion the Commission agreed that the fee waiver should not be allowed on moderate-
income housing units.
After further discussion the Commission requested:
. Program 8.3-2, page 10, be eliminated (impact fee reductions for moderate income and
workforce housing).
. Program 8.2-1, page 9, should be more specific and with better time lines on how this will
be implemented with an outside agency to monitor the affordable units.
Ms. Heffernon explained the changes that HCD had requested be made to the City's Housing
Element:
. Page 6, Program A.2-1 would like more detail on how the 2nd dwelling ordinance will be
encouraged and publicized.
. Page 7, A.1 0-1, needs better clarification regarding financial incentives for all affordable and
not just for senior and disabled affordable housing.
. Page 11, C.1-1, needs better see something more tangible to create additional funding for
this program and describe the redevelopment agency in greater detail. This would then
make C.2-1 redundant and should therefore be deleted.
Chair Guthrie opened the Public Hearing.
Jerry Rioux, Executive Director of the new San Luis Obispo County Housing Trust Fund, (non-
profit corporation) stated that their goal is to work with developers, non-profits, local governments
to help develop more affordable housing and their main goal being to set up a revolving loan fund
to help provide financing for various projects that are appropriate for the community. Mr. Rioux
commended the City on the Housing Element and on the many good policies to be considered. He
further commented:
. Certain affordable programs require longer (45 -50 years) affordable restrictions (rather
than 30 years).
. Redevelopment law has a 15% inclusionary requirement within the area.
. He liked the higher inclusionary area in apartments, especially where annexed to the City.
. He liked the combination of unit size and affordability and suggested that a policV or
program be included to see how it works.
. He liked the way that both unit size and affordability had been combined in calculating
density bonuses and suggested a policy or program be included to evaluate how this works
during the Housing Element period for fine tuning.
. One area that was missed: A 2nd residential unit program, which could create 45 units
every year without financial assistance and half would probably be low and half moderate
income.
. If the 2nd residential units require assistance they can be developed with deed restrictions.
. He liked the commitment to work with non-profits - and stated it is helpful to identify more
ways on how to use this money.
. Requested that the City include the SLO County Housing Trust Fund agency to work with
them over the period of the Housing Element.
The Commission stated they had been under the impression that the 2nd residential dwelling units
could not be counted towards the RHNA.
PLANNING COMMISSION AGENDA PAGE 7
TUESDAY, OCTOBER 21, 2003
Steve Ross, 211 Garden Street:
. Policy B.3-2: Most of the fee waiver language had already been struck and deferred
collection had been the primary method; there may still be some incentive outside of the
density bonus; he suggested to collect fees and when built if it fits the moderate/workforce
housing the rebate could be made after completion.
. The affordable housing will be deed restricted so therefore the S & S Homes project would
be included.
. There is a need to take some of financial burden off the builder to provide workforce
housing and this will benefit the whole community.
. If more houses were built the price of housing would not be so high.
. May have to expand the City boundary to find property.
. Inclusionary housing is a good thing.
Chair Guthrie closed the Public Hearing.
Ms. Heffernon said she would make the recommended changes requested by HCD and would take
both the Commission recommendations and staff recommendations to City Council.
Commissioner Brown made a motion, seconded by Commissioner Arnold to recommend
Environmental Determination and adoption of the 2003 Housing Element of the General Plan
including the changes recommended by the HCD and:
. Policy B.2-1, page 9, include language that will specify "a specific time frame and who will be
used as a monitoring agency".
. Policy B.3-2; Page 9, to be entirely eliminated.
. Policy B.3, page 8, strike word "projects".
and adopt:
RESOLUTION NO. 03-1907
A RESOLUTION OF THE CITY OF ARROYO GRANDE PLANNING COMMISSION
RECOMMENDING ENVIRONMENTAL DETERMINATION AND ADOPTION OF
THE 2003 HOUSING ELEMENT OF THE GENERAL PLAN
The motion was approved on the following roll call vote:
AYES: Commissioners Brown, Arnold, Keen and Chair Guthrie
NOES: None
ABSENT: Commissioner Fowler
the foregoing resolution was adopted this 21 st day of October 2003.
Chair Guthrie requested that the Commission get a copy of any of the changes made by staff and
the Commission prior to them going to City Council (copy of the chapter with the changes
highlighted).
Chair Guthrie congratulated staff on having the Housing Element Update completed and submitted
to the State HCD in such good time.
-_._,,-- ------ ---,--.__.~-~"
~-
!,;TATF OF r:AIIFhRNIA -RII!,;INF!,;!,; TRAN!,;PORTATION AND HOlJ!,;ING AGENCY GRAY DAVI!'; Governor
. f ~ .
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
Division of Housing Policy Development Iii:
1800 Third Street, Suite 430
p, Q, Box 952053
Sacramento, CA 94252.2053
(916) 323.31771 FAX (916) 327-2643 A TT ACHMENT 10 ,"
www,hcd.ca,gov
~._---- ...--..- .-.-.---....-
October 21, 2003 RECEIVED
,
Mr. Rob Strong OCT2 7 2003
, CITY OF ARROYO GRANDE
Community Development Director
City of Arroyo Grande COMMUNITY DEVELOPMENT DEPT.
P.O. Box 550
Arroyo Grande, California 93421
Dear Mr. Strong:
Re: Review of the City of Arroyo Grande's Draft Housing Element
Thank you for submitting Arroyo Grande's draft housing element, received August 22, 2003 for our
review. As you know, the Departmen! of Housing and Community Development (Department) is '
required to review adopted housing elements and report our findings to the City pursuant to
Government Code Section 65585(d). Our review was facilitated by a telephone conversation with
Ms. Kelly Heffernon, the City's Associate Planner, on October 20,2003.
An'oyo Grande's draft element includes many promising programs that have the potential to
facilitate the development of affordable housing. We commend the City for modifying its. residential
development standards to allow for three stories and reducing parking standards for lower- and
moderate-income and senior housing projects. We also commend the City for approving Arroyo
Grande's first residential mixed-use housing project on the corner of Elm Street and The Pike.
Revisions, however, are needed to comply with State housing element law (Article 10.6 of the
Government Code). In particular, the element should identify additional sites to accommodate
Arroyo Grande's sl).are of the regional house need for lower- and moderate-income persons. These
and other changes needed to bring the City's housing element into compliance with State law are
summarized in the Appendix.
We are pleased to report, as a result of the passage of Proposition 46, a historic increase in funds
available, on a competitive basis, through the Department to assist in addressing housing and
community development needs. Information on these programs, including Notices of Funding
Availability (NOFA), are posted on the Department's website. For program information and
funding availability, please consult our homepage at www.hcd.ca.gov.
We are committed to facilitating the City's efforts to bring Arroyo Grande's housing element into
compliance with State law. We greatly appreciate the assistance provided by Ms. Heffernon during
the course of our review. If you have any questions or concerns or would like to schedule a meeting
in Arroyo Grande or Sacramento, please contact Michelle Woods, of our staff, at (916) 327-8881.
-~
, , ' .
Mr. Rob Strong
Page 2
In accordance with requests received pursuant to the Public Records Act, we are forwarding a copy
of this letter to the individuals listed below.
Sincerely,
Cathy E. eswell
Deputy Director
Enclosure
cc: Kelly Heffernon, Assistant Planner, City of Arroyo Grande
Mark Stivers, Senate Committee on Housing & Community Development
Suzanne Ambrose, Supervising Deputy Attorney General, AG's Office
Terry Roberts, Governor's Office 'Of Planning and Research
Nick Cammarota, California Building Industry Association
Marcia Salkin, California Association of Realtors
Marc Brown, California Rural Legal Assistance Foundation
Rob Weiner, California Coalition for Rural Housing
John Douglas, AICP, Civic Solutions
Deanna Kitamura, Western Center on Law and Poverty
S. Lynn Martinez, Western Center on Law and Poverty
Alexander Abbe, Law Firm of Richards, Watson & Gershon
Michael G. Colantuono, Colantuono, Levin & Rozell, APC
Ilene J. Jacobs, California Rural Legal Assistance, Inc. '
Richard Marcantonio, Public Advocates
----------
. , , .
APPENDIX
City of Arroyo Grande
The following changes would bring Lakeport's housing element into compliance with Article 10.6 of the
Government Code. Accompanying each recommended change, we cite the supporting section of the
Government Code.
Housing element information is available on our website at www.hcd.ca.gov/hpd which may be of
assistance. Refer to the Division of Housing Policy Development and the section pertaining to State "
Housing Planning. The Housing Elements section contains the Department's publication, Housing
Element Questions and Answers (Qs & As) and the Government Code addressing State housing element
law.
A. Housing Needs, Resources. and Constraints
1. Include an inv.entory of land suitable for residential development, including vacant sites and
sites having potential for redevelopment, and an analysis of the relationship of zoning and
public facilities and services available to these sites (Section 65583(a)(3)).
To demonstrate the adequacy of housing sites, the element should be .expanded to include the
following information:
a. As the element does not currently identify adequate sites for units affordable to lower- and
moderate-income persons, providing more information about mixed-use development could
assist Arroyo Grande in accommodating its share of the regional housing need. The element
indicates that 85 percent of the commercially zoned land in Arroyo Grande is available for
residential mixed-use (page 48). While the element includes references to a few mixed-use
developments, it should clarify whether all of the City's potential mixed-use sites have been
included in the Preliminary Housing Opportunity Sites Inventory, Table 15 (page 49). In
addition, Table 15 should be expanded to include the number and size of mixed-use sites and
a description and analysis of the following:
. Any environmental constraints affecting the sites.
. The City's mixed-use development standards.
. Any' financial or regulatory incentives the City will offer to encourage and facilitate
mixed-use development.
. Historic or market trends that demonstrate the potential for residential mixed-use
development.
b. The element should clarify the current or proposed zoning for sites in Table 15 and clearly
indicate whether or not sites are vacant or occupied by existing structures. The element
should also identify the zones the City believes can accommodate units affordable to lower-
and moderate-income households can be developed. Based upon the analyses in the element
and regional trends, it appears that units affordable to lower- and moderate-income persons
are most likely to be developed in Arroyo Grande's VHD, MD, VC, 0, PD, SP, and CF
zones.
c. Many of the sites listed in Table 15 have existing uses or appear to have development,
limitation (may require rezone). The element should provide an expanded analysis of those
constraints and indicate whether the constraints will limit development during the current
planning period or require mitigation. For example:
--- ------- ---.---.---
. . . .
2
Site #12 - What is the likelihood that this site, which is currently occupied by a single-family
residence, will convert to a higher density use during the current planning period? What
regulatory and/or financial incentives will Arroyo Grande provide to facilitate the reuse of
this site?
Site #13 - The element should clarify if a zone change is required before this site can be
developed for residential use. If yes, the element should include a program to accomplish, ,
during the current planning period, the zone change. The element should also describe the
status of the pre-application that was considered for this site.
Site #15 - The element should clarify if a zone change is required for this site and the impact
of the presence of archeological sites on the timing, cost, and/or potential of development.
Site #16 - The element should clarify if a zone change is required before this site can be
developed for residential use. If yes, the element should include a program to accomplish,
during the current planning period, the zone change. The element should also analyze how
the existence of a flood plain will impact the residential development of this site.
.
Site #25 - The element should indicate if the application pending for this site includes
housing affordable to lower.: and moderate-income persons.
d. Arroyo Grande's water supply can only accommodate 429 to 509 housin!J; units during the
current planning period (according to pages 22-59). Government Code Section 65589.7
requires public and/or private water providers provide priority to proposed housing
development projects for lower-income households. To comply with the requirement, the
element should include a program to provide Arroyo Grande's water and sewer providers
with a copy of the City's adopted housing element. In addition to water conservation
strategies, the element should include other programmatic approaches the City will
undertake to address the availability of water. For more information, please refer to the
Department's Qs & As publication (page 51).
e. The element should clarify the allowed uses in the VHD zone (page 63) which lists senior
residential under the consistent zoning column. The element should clarify development in
this zone is not restricted to seniors.
2. Analyze potential and actual governmental constraints upon the development of housing for all
income levels andlpr persons with disabilities, including land use controls required of
developers and local processing and permit procedures. The analysis shall also demonstrate
local efforts to remove governmental constraints that hinder the locality from meeting its share
of the regional housing need in accordance with Section 65584 and from meeting the need for
housing for persons with disabilities identified pursuant to paragraph (6) (Section 65583( a)( 4 )).
a. The element (pages 60 through 69) should be expanded to address the following statutory
requirements:
Land-Use Controls: While the element includes Table 16 which describes residential
density, zoning categories and population densities, it does not describe or analyze other
relevant standards such as parking requirements, lot coverage, lot sizes, unit sizes, floor
. .
3
area ratios, setbacks, and open space requirements, etc. The element should address
development code amendments underway pursuant to the updated general plan (page 61),
especially the impact of the amendments on the Preliminary Housing Opportunity Sites
Inventory and the cost of developing housing.
On- and Off-Site Improvement Reauirements: The element does not address this
requirement. Expand to describe and analyze improvement requirements including street "-
widths, curb, gutter, and sidewalk requirements, water and sewer connections, and
circulation improvement requirements. It should also describe any generally applicable
level of service standards or mitigation thresholds.
Permit Processing: The element includes abriefdescription"ofpermit approval timeIines
but does not describe the process. Expand to include a description and comparison of the
types of, permits, typical processing times, standard approval procedures, discretionary
approval procedures, and processing times required for recent residential projects,
including overlay zones, community plan implementation zones, and hillside overlay
zones. The element should also describe, landscaping"planned districts, and other
applicable regulations. As a part of this analysis;theelementshould"describe the permit
and approval process for a typical single-family subdivision and a typical multifamily
project.
Codes and Enforcement: The element should describe the degree and type of enforcement
of the Uniform Building Code (page 62). A ,strict code enforcement program which
specified expensive materials and/or methods. can pose a significant constraint to housing
development or maintenance.
Constraints on' Housing for Disabled Persons: In accordance with recently enacted
legislation (Chapter 671, Statutes of 2001), housing elements are now required to include a
description and analysis of any potential or actual governmental constraints on the
development of housing for persons with disabilities and to document Arroyo Grande's
efforts to remove such constraints. This analysis should include approval procedures for
group'homes of more than six people and processing procedures for ADA retrofits, among
other things. To assist the City with this analysis, we have enclosed the recent statute and
technical assistance resources.
3. Expand the analyses of household housing characteristics, persons with special housing needs,
and at-risk assisted housing developments (Sections 65583 (a)(]), (a)(2), (a)(6), and (a)(8)).
a. The analysis of household characteristics should be revised to include the information listed
below. This information will help Arroyo Grande prioritize its housing needs and identify
appropriate program responses. Please refer to the Department's Qs & As publication
(page 7) and the enclosed data from the 2000 Census.
. The number of over-crowed households, by tenure.
. The number of lower-income households overpaying for housing, by tenure.
. . . .
4
B. Housin2 Pro2rams
1. Identify adequate sites which will be made available through appropriate zoning and
development standards and with public services and facilities needed to facilitate and encourage
the development of a variety of types of housing for all income levels, including rental housing,
and emergency shelters and transitional housing. Where the inventory of, sites, pursuant to
paragraph (3) of subdivision (a), does not identify adequate. sites to accommodate the need for "-
groups of all household 'income levels pursuant to Section 65584,< the program shall provide for
sufficient sites with zoning that permits owner-occupied and rental multifamily residential use by
right, including density and development standards that could accommodate and facilitate the
feasibility of housingfor very 10w--andlow-incomehouseholds(Section 65583(c)( 1)).
a. As the element does not currently identify adequate sites for units affordable to lower- and
,moderate-income persons, Arroyo Grande may need to adopt additional policies or programs
to accommodate its remaining need (see comment A.I).
b. The City has identified an unrnet need for-additionaLemergencysheltersand fannworker
housing; therefore, the element will need to aadressthefollowing:
I) Program K.2-I should describe the zones where emergency shelters and transitional
housing can be developed, the'approvalprocess,.and:demonstrate that Arroyo Grande's
regulations facilitate and do not unduly constrainthe'development of emergency shelters
and transitional housing. Program K.2-I shouldalsofinnlyco~mit the City updating the
Development Code.
2) Describe zones where housing for fannworkers could be developed and demonstrate the
City's zoning and development standards encourage and facilitate the development of
housing for fannworkers.
For your infonnation, Proposition 46 funding provides new resources, available to local
governments to improve and construct additional emergency shelters and fannworker housing
throughout the State.
2. The housing element should include a program which sets forth a five-year schedule of actions
the local government is undertaking or intends to undertake to implement the policies and
achieve the goals and objectives of the housing element (Section 65583( c)).
To address this requirement, some of the element's programs require a more specific description
of the City's role in implementation and more specific timelines. Programs that should be
revised/strengthened include, but are not limited to, the following:
. Program A.2-l - The element should describe how Arroyo Grande will publicize its second-
unit program and include a goal for second-unit production. Note, the City's goal for second-
unit production should be based on the rate of second-unit construction during the prior
planning period and policies and incentives the City will implement to facilitate and
encourage development. i
,
...
. Program CA.l - The element should describe how frequently Arroyo Grande will meet with
developers and the funding sources the City will promote.
-
. .. '.~-
-
. "'
5
. Program J.1.l - The element should describe how Arroyo Grande will promote housing
opportunities for seniors.
. Program J.4-l - The element should describe the types of amendments Arroyo Grande is
considering and include a timeline for completion.
. The element should include program actions to implement policies A.4, A5, A9, A14, A.19,
B.4 and B.6. These programs will assist Arroyo Grande irr,complying with housing element
'requirements and. should include implementation measures.toensure.thek success.
3. The housing element shall contain programs, which "address,:andwhere'appropriate and legally
possible. removegovemmental constraints to the maintenance/improvement; ,and development of
housing" (Section 65583(c)(3)).
Arroyo Grande's housing element requires a more thorough analysis of potential governmental
constraints (see comment A.2). Depending upon the results of the required analysis, the City
may need to add programs to remove or mitigate. any identified constraints.
4. Include a program to promote e.qual housing opportunity (Section 65583( c)( 5)).
Since State and federal uniformly outlaw most kinds of housing discrimination, local
government's role ista identify program strategies that'support'andimplement these laws. Such
strategies may include consultation with fair housing and counseling organization in the
community to document the incidence of housing discrimination' and, theavailabiJity of services
to address the problem. If fair housing services are not available or are inadequate, the locality
can request technical assistance from HUD, the Housing Unit of the State Department of Fair
Employment and Housing, and/or local, regional private fair housing organizations. For
assistance with this revision, refer to the Department's Qs & As publication (page 42). Program
N.1.l should also describe the City's process for resolving housing discrimination complaints
and how that process will be advertised.
5. Describe the utilization of moneys in low- and moderate-income housing fimds
(Section 65583(c)).
The housing element should include an estimate of the amount of funds expected to accrue in
Arroyo Grande's LMrnF over the planning period of the element and describe the planned uses
of the funds. If possible, for each program in the housing element that lists the Redevelopment
Agency as the entity responsible agency for implementation, the amount of redevelopment funds
allocated or planned to allocation should be listed.
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A TT ACHMENT 11
CITY OF ARROYO GRANDE
HOUSING ELEMENT
INITIAL STUDY &
NEGA TIVE DECLARA TION
1. Project Title: City of Arroyo Grande Housing Element Update;
General Plan Amendment 03-005
2. Lead Agency Name &. Address: City of Arroyo Grande
P.O. Box 550/214 E. Branch Street
Arroyo Grande, CA 93421
3. Contact Person &. Phone #: Kelly Heffernon, Associate Planner
(805) 473-5420
4. Project Location: Arroyo Grande, California (the programs and policies of the
Housing Element Update will apply City-wide).
5. Project Sponsor's Name &. Address: City of Arroyo Grande
214 E. Branch Street
P.O. Box 550
Arroyo Grande, CA 93421 '
6. General Plan Designation: Not Applicable
7. Zoning: Not Applicable
8. Introduction:
This document is an Initial Study and Negative Declaration (ND) prepared pursuant to the California
Environmental Ouality Act (CEOA), for the 2003-2008 City of Arroyo Grande Housing Element (the
" Project"). This ND has been prepared in accordance with CEOA, Public Resources Code Sections
21000 et seq., and the CEOA Guidelines.
This ND is a public document to be used by the City to determine whether the Project may have a
significant effect on the environment. The Program Environmental Impact Report prepared for the
2001 Arroyo Grande General Plan Update was used as a resource for this ND. The Program EIR
contains supporting environmental studies, as well as extensive goals, policies, and implementation
programs designed to identify and address the environmental impacts of development within the City
over the long-term.
1
9. Description of Project: (Describe the whole Ilction involved, including but not limited to IIltsr phllses of
the project, Ilnd Ilny secondllry, support, or off-site felltuT8s necessllry for its implementlltion. Attllch
Ildditionll/shBBts if necessllry.)
The City of Arroyo Grande has prepared an update of its Housing Element to address California
Housing Element law and to pursue local housing objectives covering the 2003-2008 planning period.
The Draft Housing Element was prepared to comply with the legal mandate that requires each local
government to review its housing element as frequently as appropriate (California State Government
Code Section 65588(a). The proposed Housing Element Update is available for review on the City's
web page at:
www.arrovogrande.org
The Draft Housing Element has been prepared in accordance with development policies contained in
the City' s General Plan land Use Element, which establishes the location, type, intensity and
distribution of land uses throughout the City, and the Circulation Element, which ensures adequate
mobility. The fundamental goal of the Housing Element is to promote a wide variety of housing
opportunities to meet the needs of all economic segments of the community, while maintaining
internal consistency among the other elements of the General Plan. The Housing Element sets forth
goals .based primarily on state law and then forms an implementation strategy to meet the established
goals, and includes all of the following information as required by state law:
. Specific goals, measurable objectives, policies and implementation measures.
. Information about the existing housing stock, covering such items as the amount, type, cost,
tenure, and structural conditions of the units. Other areas or concern include overcrowding and
the needs of special subgroups of the population.
. An analysis of potential barriers to housing production, including both governmental and non-
governmental constraints.
. Information about energy conservation opportunities in housing.
. A summary of the past housing efforts and an analysis of their success or failure.
Specifically, the proposed plan document would include programs and policies to:
./ Provide a continuing supply of affordable housing to meet the needs of existing and future
Arroyo Grande residents in all income categories.
./ Ensure that housing that is constructed in the City is affordable to all income levels.
./ Provide very low and low-income housing for current and future residents.
./ Encourage apartment construction for very-low and low-income households.
./ Regulate condominium conversions to protect the City's supply of apartments and allow more
moderately priced for-sale homes.
./ Strengthen the City's inclusionary housing ordinance to require more affordable units in housing
and commercial development projects.
./ Create clearer regulations and streamline the approval process.
./ Conserve and rehabilitate the City's older stock, particularly to provide affordable housing.
./ Preserve at-risk units within the City.
./ Meet the housing needs of special groups of Arroyo Grande residents, including seniors, single
parents, large families, and farm workers.
./ Reduce or minimize the incidence of homeless in the community.
./ Ensure that those residents with handicaps or disabilities have adequate access to housing.
./ Increase the efficiency of energy use in new and existing homes, with a concurrent reduction in
housing costs to Arroyo Grande residents.
2
./ Assure access to sound, affordable housing for all persons regardless of race, creed, age or sex.
./ Ensure participation of all economic segments of the community in the development of housing
policy for Arroyo Grande.
./ Utilize Redevelopment Agency funding to support affordable housing.
The Housing Element itself does not define the residential growth potential of the City. Rather, it
works within the framework of the Land Use Element, which establishes the type and amount of
future residential development permitted in the City. The Land Use Element identifies the build-out
population of the City at approximately 20,000 residents by the year 2023, which includes new units
in districts allowing residential and mixed use. The Housing Element works within this General Plan
framework and establishes a five-year goal to facilitate the development of 1,192 units (or a
population of 19,384 based on 2.4 persons per household).
This total allocation of 1,192 units to the City was established through the Regional Housing Needs
Plan prepared by the San Luis Obispo Council of Governments (Internet
http://www.slonet.org/- ipslocog). However, this accelerated growth would have the City reaching
its build-out capacity of the Land Use Element fifteen (15) years earlier than what the General Plan
anticipates. The greater challenge for the City will be accommodating additional allocations from the
State in the 2008 Housing Element Update that exceed the projected build-out population.
10. Other agencies whose approval is required (and permits needed):
The California Department of Housing and Community Development will review the City' s Housing
Element Update to determine whether it is in compliance with California Housing Element law.
3
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DETERMINATION.
On the basis of this initial evaluation:
I find that the proposed project COULD NOT have a significant effect on the environment, and a NEGATIVE
DECLARATION will be prepared.
I find that although the proposed project could have a significant effect on the environment, there will not
be a significant effect in this case because the mitigation measures described on an attached sheet have
been added to the project. A NEGATIVE DECLARATION will be prepared. X
I find that the proposed project MAY have a significant effect on the environment, and an
ENVIRONMENTAL IMPACT REPORT is required.
I find that the proposal MAY have a significant effect(s) on the environment, but at least one effect 1) has
been adequately analyzed in an earlier document pursuant to applicable legal standards, and 2) has been
addressed by mitigation measures based on the earlier analysis as described on attached sheets, if the
effect is a "potentially significant impact" or "potentially significant unless mitigated". An
ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the effects that remain to be
addressed.
J/3a/cJ3
Date
ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED:
The environmental factors checked below would be potentially affected by this project, involving at least one impact that is a
"POTENTIALLY SIGNIFICANT IMPACT" or "POTENTIALLY IS SIGNIFICANT UNLESS MITIGATED", as indicated by the checklist on
the following pages.
o Land Use and Planning o Biological Resources o Public Services
o Population and Housing o Energy and Mineral Resources o Utilities and Service Systems
o Geophysical o Hazards o Aesthetics
o Water o Noise o Cultural Resources
o Air Quality o Mandatory Findings of Significance o Recreation
o T ransportation/Circulation
EVALUATION OF ENVIRONMENTAL IMPACTS:
1. A brief explanation is required for a/l answers except "No Impact" answers that are adequately supported by the information
sources a lead agency cites in the parentheses fo/lowing each question. A "No Impact" question is adequately supported if the
referenced information sources show that the impact simply does not apply to projects like the one involved (e.g., the project
falls outside a fault rupture zone). A "No Impact" answer should be explained where it is based on project specific factors as
well as general standards le.g., the project will not expose sensitive receptors to pollutants, based on a project-specific
screening analysisl.
2. All answers must take account of the whole action involved, including off-site as well as on-site, cumulative as well as project-
level, indirect as well as direct, and construction as well as operations impacts.
3. "Potentially Significant Impact" is appropriate if an effect is significant or potentially significant, or is the lead agency lacks
information to make a finding of insignificance. If there are one or more "Potentially Significant Impact" entries when the
determination is made, an EIR is required.
4. "Potentially Significant Unless Mitigated" applies where the incorporation of mitigation measures has reduced an effect from
"Potentially Significant Impact" to a "Less than Significant Impact." The lead agency must describe the mitigation measures
and briefly explain how they reduce the effect to a less than significant level (mitigation measures from Section XVII, "Earlier
Analyses", may be cross referenced.)
5. Earlier analyses may be used where, pursuant to the tiering, program EIR, or other CEQA process, an effect has been
adequately analyzed in an earlier EIR or negative declaration. Section 15063(c)(3)(D). Earlier analyses are discussed in Section
XVII at the end of the checklist.
6. Lead agencies are encouraged to incorporate into the checklist references to information sources for potential impacts (e.g.,
general plans, zoning ordinances). A Source List should be attached and other sources used or individuals should be cited in the
discussion.
4
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" ' ,0 '..~u'
::::'::;:. '. .~, - - -:;_:'- :-:--' - -- .-,: ~:::::::~?:i'~:::::~::::':;:::::/-:;;:::u
, ' ' : ~j-, '" "",,,," t..~.
" .~JfMt
Issu'sland Supporting Infonnatkm SourceS): '~~" UIiifi .... No
Mlrs1fltec# I1IfpMI /tnpMIt
, ,
I. LAND USE AND PLANNING. Would the propo8lll:
a) Conflict with general plan designation or zoning? - X
I
(source lis): 1,2,3,4)
b) Conflict with applicable environmental plans or policies I
adopted by agencies with jurisdiction over the project? I X
(source lis): 1,6,7) -i ,
c) Affect agricultural resources or operations (e.g., impacts
to soils or farmlands, or impacts from incompatible land
uses)? (source lis): 9, 11) X I
d) Disrupt or divide the physical arrangement of an . " I
established community (including a low-income or
minority community)? (source lis): 2,4,11) , X
II. POPULATION AND HOUSING. Would the proposal:
"
a) Cumulatively exceed official regional or local population ., '
projections? (source lis): 1,5,9) X
b) Induce substantial growth in an area either directly or , "
indirectly (e.g., through projects in an undeveloped area , '. I
or extension of major infrastructure)? X
(source lis): 9,10)
:", I
c) Displace existing housing, especially affordable housing? ,
(source lis): 9,10,11) L" X
III. GEOPHYSICAL. Would the proposal result in or expose people to potential impacts involving:
a) Seismicity: fault rupture? (source lis): 5,6) , X
b) Seismicity: ground shaking or liquefaction? ,
(source lis): 5,6) I,J ,', X
c) Seismicity: seiche or tsunami? (source lis): 5,6) .' X
f' "',.
d) Landslides or mudslides? (source lis): 5,6) l" X
e) Erosion, changes in topography or unstable soils f ~ ;:
conditions from excavation, grading or fill?
(source lis): 10) I I X
f) Subsidence of land? (source lis): 5,6) r +i X I
g) Expansive soils? (source lis): 5,6) , X
~
h) Unique geologic or physical features? (source lis): :",::
5,6,10,11) , X
f': "
':
5
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I
IV. WATER RESOURCES/ DRAINAGE: Would the Proposal result in:
a) Changes in absorption rates, drainage patterns, or the , t
rate and amount of surface runoff? (source #(s): 10) X
b) Exposure to people or property to water related hazards ,
. .
such as flooding? (source #(s): 8) '. X
c) Discharge into surface waters or other alteration of ..
surface water quality {e.g., temperature, dissolved ,
oxygen or turbidity? (source #(s): 9) '1 . . X
d) Changes in the amount of surface water in any water - ,,'
:'. .'
body? (source #(s): 9, 10) , X
e) Changes in currents, or the course or direction of water . >y
movements? (source #(s): 9, 10) ,,~ . X
f) Change in the quantity of ground waters, either through ."
direct additions or withdrawals, or through interception
of an aquifer by cuts or excavations?
(source #(s): 9, 10) X
g) Altered direction or rate of flow of groundwater? , I
(source #(s): 9, 10) ,I
h) Impacts to groundwater quality? (source #(s): 9,10) ," ,1 . . X
i) Substantial reduction in the amount of water otherwise ,
available for public water supplies? (source #(s): 6)
X
V. AIR QUALITY: Would the proposal:
a) Violate any air quality standard or contribute to an
existing or projected air quality violation? I
(source #(s): 7, 13) . .,,' I, X
b) Expose sensitive receptors to pollutants? (source #(s): \.""
1 0, 11) . X
c) Alter air movement, moisture, or temperature, or cause ."
any change in climate? (source #(s): 9) I.,"'" '. X
"
d) Create objectionable odors? (source #(s): 9,10) I.. . X
..
VI. TRANSPORTATION/CIRCULATION. Would the proposal result in:
a) Increased vehicle trips or traffic congestion? (source ,
#(s): 13) X
b) Hazards to safety from design features (e.g., sharp r I
curves or dangerous intersections) or incompatible uses I
(e.g., farm equipment)? (source #(s): 9, 10) X
c) Inadequate emergency access or access to nearby sites?
(source #(s): 9, 10) X
d) Insufficient parking capacity on-site or off-site? (source \ .
#(s): 3, 9, 10) , X
6
.. .1"'/"
' ,,.. n~J,J~ "r, .
., :~"" , . ,
. -* - . '. _:.:. .. '~"',...,.,'..., ..l.,="'.,.II".....'
Issues ..;;' . .', .". ',' Jf.
.... ".'. .., ' ., ..-.' "'.' -...
" .'.'., ;'. '.' ..,.: ,
e) Hazards or barriers for pedestrians or bicyclists? (source ' .
lIs): 9, 10) I X
f) Conflicts with adopted policies supporting alternative
transportation (e.g., bus turnouts, bicycle racks)?
(source lIs): 9, 1 0) ~ I X
VII. BIOLOGICAL RESOURCES. Would the proposal result in impacts to:
a) Endangered, threatened or rare species or their habitats " I
(including but not limited to plants, fish, insects, ' , ,
animals, and birds? (source lIs): 6) . X
b) Locally designated species (e.g., heritage trees)? r ..
(source lIs): 10, 11) X
c) Locally designated natural communities (e.g., oak forest, ." . I . .
coastal habitat)? (source lIs): 10, 11), , I, . X
d) Wetland habitat (e.g., marsh, riparian and vernal pool)? .', .
(source lIs): 9, 11) X
-
e) Wildlife dispersal or migration corridors?
(source lIs): 11) . X
VIII. ENERGY AND MINERAL RESOURCES. Would the proposal:
a) Conflict with adopted energy conservation plans? I. ~ 1[. -.
(source lIs): 1, 6) r .... X
b) Use non-renewable resources in a wasteful and I~ .
inefficient manner? (source lIs): 9, 10) /, . X
IX. HAZARDS. Would the proposal involve:
a) A risk of accidental explosion or release of hazardous "., ." " '
substances (including, but not limited to: oil, pesticides,
chemicals or radiation? (source lIs): 9), X
b) Possible interference with an emergency response plan '
or emergency evacuation plan? (source lIs): 9, 10) r
: . X
c) The creation of any health hazard or potential health ;' . . .
hazard? (source lIs): 9, 10) , X
d) Exposure of people to existing sources of potential ' , ..
health hazards? (source lIs): 9,10,11) X
e) Increased fire hazard in areas with flammable brush, " ;'-
grass, or trees? (source lIs): 10, 11 )" . X
X. NOISE. Would the proposal result in:
a) Increases in existing noise levels? (source lIs): 1, 9) "'I X
. I ~]
b) Exposure of people to severe nOise levels?
(source lIs): 9, 10) X
7
:'-h_~_;1f(r.w :" ".rW",~ t I - -
i~r,,;f '~I1M_
--~~~~.Mt ,,.,,
,4&' '. ,,'fjfl rj .
, """
tJiJ.IirhrDt, .....
"
XI. PUBLIC SERVICES. Would the proposal have an effect upon, or result in a need for new or altered
government services in any of the fol/owing areas:
a) Fire Protection? (source lIs): 6) X
b) Police Protection? (source lIs): 6) I " X
c) Schools? (source lIs): 6) X I
d) Maintenance of public facilities, including roads? ,
(source lIs): 6) X
e) Other governmental services? (source lIs): 6) ;" , X
XII. UTilITIES AND SERVICE SYSTEMS. Would the proposal result in a need for new systems, or
substantial alterations to the fol/owing utilities:
~ -
a) Power or natural gas? (source lIs): 9, 10) "''' X
b) Communications systems? (source lIs): 9, 10) ,:, , ' X ,
, '
c) Local or regional water treatment or distribution I "" , I..
facilities? (source lIs): 6) , " X
d) Storm water drainage? (source lIs): 6) X
e) Solid waste disposal? (source lIs): 6) , X :
XIII. AESTHETICS. Would the proposal:
a) Affect a scenic vista or scenic highway? "
,
(source lIs): 1, 10, 11) " .. X
b) Have a demonstrable negative aesthetic effect? ' ",:' -
,
(source lIs): 9, 10, 11) , X
X
c) Create light or glare? (source lIs): 9,10)
XIV. CULTURAL RESOURCES. Would the proposal:
a) Disturb paleontological resources? (source lIs): 6, 11) - , I X
b) Disturb archaeological resources (source lIs): 6, 11) , X
"
c) Affect historical resources? (source lIs): 6, 11) , X
,
d) Potentially cause a physical change that would affect ' " ,
unique ethnic cultural values? (source lIs): 11) X
e) Restrict existing religious or sacred uses within the
potential impact area? (source lIs): 10, 11) , " I ' X
XV. RECREATION. Would the proposal:
a) Increase the demand for neighborhood or regional parks ,,,,,
or other recreational facilities? (source lIs): 1, 3) I "
I ' X
,
b) Affect existing recreational opportunities? I
(source lIs): 1, 5) " X I
,
8
~._-
'~-
", c. "',_
' '." Ii' tuu",
Issues (and SUppoFting Infennatron .0....1':",,\'11:, tii _.. No
", , , -tt: I WI '~"\l:if Jm,JIKd
XVI. MANDATORY FINDINGS OF SIGNIFICANCE.
a) Does the project have the potential to degrade the
quality of the environment, substantially reduce the
habitat of a fish or wildlife species, cause a fish or
wildlife population to drop below self-sustaining levels,
threaten to eliminate a plant or animal community,
reduce the number or restrict the range of a rare or
endangered plant or animal or eliminate important
examples of the major periods of California history or
prehistory?
b) Does the project have the potential to achieve short-
term, to the disadvantage of long-term, environmental
goals?
c) Does the project have impacts that are individually
limited, but cumulatively considerable? ("Cumulatively
considerable" means that the incremental effects of a
project are considerable when viewed in connection
with the effects of past projects, the effects of other
current projects, and the effects of probable future
projects.)
d) Does the project have environmental effects that will
cause substantial adverse effects on human beings,
either directly or indirectly?
XVII. EARUER ANALYSES.
Earlier analyses may be used where, pursuant to the tiering, program EIR, or other CECA process, one or more effects have
been adequately analyzed in an earlier EIR or negative declaration. Section 15063(c)(3)(D). In this case, a discussion should
identify the following on attached sheets:
a) Earfl8r analyses used. Identify earlier analyses and state where they are available for review.
b) Impacts adequately addressed. Identify which effects from the above checklist were within the scope of and
adequately analyzed by earlier documents.
c) Mitigation Measures. For effects that are "potentially significant" or "potentially significant unless mitigated",
describe the mitigation measures which were incorporated or refined from the earlier document and the extent to
which they address site-specific conditions for the project.
SOURCE LIST:
1. City of Arroyo Grande General Plan (October 2001)
2. City of Arroyo Grande General Plan Land Use Map (October 2001)
3. City of Arroyo Grande Development Code
4. City of Arroyo Grande Zoning Map
5. City of Arroyo Grande Existing Setting and Community Issues Report
6. City of Arroyo Grande General Plan Program EIR (October 2001)
7. Air Pollution Control District Clean Air Plan
8. FEMA - Flood Insurance Rate Map
9. Project Description
10. Project Plans
11 . Site Inspection
12. Ordinance 521 C. S.
13. San Diego Council of Governments - Vehicular Traffic Generation Rates
9
ENVIRONMENTAL SETTING:
The project relates to the entire City of Arroyo Grande, located in the southwestern portion of San Luis
Obispo County. The City is 5.45 square miles in size and is bounded by the Cities of Grover Beach and
Pismo Beach to the southwest and west, and to the unincorporated County to the north, east and south.
U.S. 101 extends northwest and southeast through the middle of the City, and Highway 227 runs east
from U.S. 101 through the Village Area. Residential Rural and Suburban development characterize
unincorporated areas to the north and southeast, and Agricultural uses dominate the Arroyo Grande Valley
that extends northeast and south of the City.
The topography of the City ranges from moderate and steep hillsides to the north of U.S. 101 to relatively
flat parcels toward the center of town, to moderate slopes further south. Several creeks traverse the City,
including the more prominent Arroyo Grande Creek that runs in a generally north-south direction through the
eastern section of the City. The Wilmar Avenue fault is a potentially active fault adjacent to the City, and
the Pismo fault underlies portions of Arroyo Grande but is inactive and poses very low potential fault rupture
hazard to the City.
EXPLANATIONS TO INITIAL STUDY CHECKLIST:
I. LAND USE AND PLANNING
New housing development may require the need for General Plan and/or Development Code
amendments. Such amendments are governed by local agency procedures and require the
preparation of environmental assessments. Land uses within the City are governed by the General
Plan, which designates appropriate land uses throughout the City and define specific goals, policies
and objectives.
The General Plan consists of several elements, including land use, circulation, housing, conservation,
open space, noise, safety, Agriculture, Economic Development, and Parks and recreation. The
Housing Element is required to be consistent with the Land Use Element. For example, the Land Use
Element designates the location, intensity and distribution of property to be developed residentially.
The Housing Element in turn helps implement the Land Use Element through its stated policies and
programs.
The Housing Element includes policies and actions designed to facilitate the construction of housing,
which involves mixed-use development and higher densities through density bonuses and second
residences. The Housing Element identifies generally the location of where new housing will occur
within the City. The majority of housing projects will be constructed on the few larger vacant lots,
with pockets of in-fill development in underdeveloped residential areas. It is anticipated that the new
Mixed-Use districts along the main corridors of the City (e.g. East Grand Avenue, East Branch Street,
Traffic Way and EI Camino Real) will accommodate several multi-family developments.
Specifically, the 2003 Housing Element identifies sites with the potential for 1,279 additional
housing units in the City through June 2008. The sites are identified more specifically in
Attachment A (Preliminary Housing Sites Inventory). As noted above, all development proposals
requiring environmental review will be required to identify mitigation measures if necessary. Each
residential development project shall be designed or shall incorporate required mitigation measures to
minimize impacts on land use and planning to less than significant or no impact levels.
Analysis of Significance: Less than significant impact
10
--~-
II. POPULATION & HOUSING
The 2003 population of the City is approximately 16,500 according to the California Department of
Finance, and is projected to reach 20,000 by 2020 according to the General Plan. This estimate is
consistent with regional projections, and does not require major displacement of existing housing.
However, some sub-area increases may require infrastructure changes or involve different traffic
impacts. Most of the population distribution is expected to occur in the new Mixed Use and Village
Commercial expansion areas.
The Housing Element does not increase the projected population in the City beyond that identified in
the General Plan. The Housing Element provides policies and programs to accommodate additional
housing (1,279 new units by July 1, 2008). These policies are intended to provide for appropriate
additional housing if the need and market conditions require those housing units.
Analysis of Significance: Less than significant impact
III. GEOPHYSICAL
The majority of new housing is expected to occur on larger vacant parcels and infill areas scattered
throughout the City. Many of the available sites are more challenging to develop given the
steepness of slope and!or proximity to sensitive resource areas. The potential for increased landslide
exposure and erosion are inherent in any hillside development.
Each development will be evaluated based on location and assessment of specific soils and geologic
studies prior to development. The areas where the Program EIR identifies as having the highest
landslide and erosion exposure include:
1. Rancho Grande-Noyes Road
2. Rancho Grande - LaCanada
3. Royal Oak Estates - require project EIRs or geotechnical study
4. Northern Sphere of influence - Highway 227
5. Fedricks/Willams properties - require Specific Plans and EIRs
Project proposals in these areas of greater geologic constraints would require project specific
mitigation measures. The Housing Element does not alter geotechnical requirements or permit
additional construction in geologically sensitive or hazardous areas.
Analysis of Significance: Less than significant impact
IV. WATER RESOURCES! DRAINAGE
The Program EIR for the 2001 General Plan explains the critical water resource issue that the City is
facing. The impacts of additional growth and development beyond the available water resources
was identified as potentially significant in both the 1990 and 2001 General Plan EIRs. Hence, limited
water availability is not a new issue for the City. A Statement of Overriding Considerations was
therefore adopted with the 2001 General Plan. Specifically, the development capacity of the 2001
General Plan is anticipated to exceed the 3,490 acre feet available to the City unless the per capita
consumption is limited to 160 gallons per day per person. However, water consumption has shown
an increase, rather than a decrease, since the 2001 General Plan was adopted, shortening the build-
out date of the General Plan unless water conservation measures are implemented.
The City' s available water supply is also dependent on other jurisdictions, Agricultural use in the
area, and County residential water use not exceeding base levels. In addition, unresolved issues still
remain regarding safe yield and allocations to these different jurisdictions. These additional
11
consumers of the Arroyo Grande ground water basin supply complicate the demand on available
water resources and the calculation of ultimate build-out for the City.
The Housing Element facilitates housing production, which consumes water resources. The Housing
Element does not exceed the current build-out population, and therefore does not require any
mitigation beyond what is outlined in the Program EIR prepared for the General Plan.
Analysis of Significance: Less than significant impact
Individual site-specific development in residential districts is subject to environmental review and
mitigation prior to project approval. Specific land use study areas with drainage concerns include:
1. Rancho Grande - Noyes Road
2. Rancho Grande - La Canada
3. Royal Oak Estates
4. Fredericks & Williams properties
5. East Grand A venue Mixed Use
6. EI Camino Real Mixed Use
Analysis of Significance: Less than significant impact
V. AIR QUALITY
The Housing Element includes policies and actions that are designed to facilitate the construction
and conservation of housing to meet the City' s share of the regional housing need. The increase in
housing units within the City will add to the cumulative increase in criteria air pollutants of the area.
Impacts to air quality was identified as significant and unavoidable in the 1990 and 2001 General
Plans and required adoption of Overriding Considerations. However, the Housing Element does not
specifically identify housing sites and projects as a basis for identifying significant impacts such as
violations of air quality standards, exposing sensitive receptors to substantial pollutant
concentrations, or creating objectionable odors. Projects that involve rezoning or construction of
housing units will be subject to project-specific environmental review. At such time, determination
will be made as to whether that project will result in potentially significant impacts to air quality.
Hence, impact from the Housing Element is considered less than significant.
Analysis of Significance: Less than significant impact
VI. TRANSPORTA TION/CIRCULA TION
The 2001 General Plan indicates that land use within the City is largely dependent on many regional
circulation system improvements that are not yet resolved, including many street segments and
intersections deficiencies for achieving a level of service (LOS) U C". Current regional development
pattern further perpetuates and promotes County residential rural and suburban sprawl without
assured mitigation. Because of these larger transportation and circulation issues, the 2001 General
Plan was adopted with Overriding Considerations.
Corrections of circulation deficiencies to LOS U C" are needed in the following areas:
1. Northern Sphere of Influence (congestion)
2. Village Core Area (parking, congestion, and Caltrans right-of-way)
3. Fredericks and Williams property (U.S~ 101 interchange needed)
The adoption and implementation of the Housing Element is not expected to generate additional
12
-
traffic beyond what is identified in the population and traffic projections of the 2001 General Plan.
The actions in the housing Element, by encouraging mixed-use and multi-family development in
commercial areas, may reduce traffic and commute times as housing is located in closer proximity to
jobs.
Analysis of Significance: Less than significant impact
VII. BIOLOGICAL RESOURCES
The 2001 General Plan focused planned development areas and higher residential densities to least
sensitive sites within the City, and maximized appropriate land area for Mixed-Use to conserve
remaining resource areas. The Housing Element is consistent with the land Use Element in this
effort, advocating higher densities in non-environmentally sensitive areas and in clustered
developments in an effort to preserve sensitive resources. larger residential developments would be
subject to project-specific CEQA review.
Analysis of Significance: Less than significant impact
VIII. ENERGY AND MINERAL RESOURCES
The Housing Element is a policy document and does not propose site-specific development.
Furthermore, impacts to energy and mineral resources are a statewide and national issue, and there are
no identified mineral resources in the area. There are no local programs identified in the 2001 general
Plan or the Housing Element for new energy conservation measures or new facilities provided.
Analysis of Significance: Less than significant impact
IX. HAZARDS
The Housing Element does not involve a specific development or hazardous materials. Future
development within the City will be subject to hazardous materials regulations. The Housing
Element complies with the City's Land Use and Safety Elements, which address hazardous
materials and hazards, respectively. Specific housing projects in known high fire or flood hazard
areas would be subject to separate environmental review.
Analysis of Significance: Less than significant impact
X. NOISE
The 2001 General Plan included a new Mixed-Use land use designation and increased the densities
for specific residential land use categories. There are potential noise compatibility concerns with
mixed-use areas, and potentially severe traffic noise sources in expansion areas adjoining U.S. 101.
The Noise Element includes goals and implementation measures designed to reduce noise impacts on
new development, and the City' s Noise Ordinance is the primary implementing tool of the Noise
Element through specific noise standards. Noise impacts associated with new residential
development would be considered on a project-by-project basis. Any proposed development in the
expansion areas along U.S. 101 would be subject to specific project study and mitigation due to
severe traffic noise exposure.
Analysis of Significance: Less than significant impact
XI. PUBLIC SERVICES
All potential impacts to public services, including fire protection, medical aid, police protection,
schools, parks, solid waste disposal, maintenance of public facilities, and other governmental
services were analyzed in the 2001 General Plan and no additional impacts are anticipated. The
13
Housing Element would result in the creation of 1,192 residential units to meet the City' s Regional
Housing Needs Allocation and would not significantly impact the ability of the City' s public services
to meet the demands of the public. Large-scale projects within Specific Plan and Planned
Development areas will provide specific project mitigation measures related to public services.
i
Analysis of Significance: Less than significant impact
XII. UTILITIES AND SERVICE SYSTEMS
The Housing Element is a policy plan to address housing needs and facilitate housing production, and
is not responsible for the construction of housing. Actions proposed by the Housing Element are not
expected to create a significant demand for new or altered power, gas, communication systems,
water treatment capacity or solid waste disposal. Projects proposed within Sphere of Influence
expansion areas will require Specific Plans and EIRs to determine appropriate mitigation.
Analysis of Significance: Less than significant impact
XIII. AESTHETICS
Aesthetic considerations, such as damage or degradation of scenic resources or visual character,
effects on scenic vistas, and new sources of light and glare will be considered at the time site
specific projects are proposed. The City's Design Guidelines for the Village Area and standards for
other overlay districts are implementing tools to protect the character of neighborhoods and mitigate
potential aesthetic impacts. Large scale and mixed-use projects require extensive design review.
Analysis of Significance: Less than significant impact
XIV. CULTURAL RESOURCES
Particular areas of town are known to contain potentially sensitive cultural and archaeological
resources, such as the Village Core and along riparian corridors. Proposed projects in these areas
would be subject to specific resource survey and project design proposals to mitigate loss of historic
or archeological resources. The Housing Element is a policy document and does not address the
impacts of specific development projects.
Analysis of Significance: Less than significant impact
XV. RECREATION
The Housing Element is designed to address existing and future housing need in the City. Residential
development does increase the need for recreational facilities that should be planned as part of the
normal growth of a community. The Parks and Recreation Element of the 2001 General Plan
incorporates principles to satisfy these needs.
Analysis of Significance: Less than significant impact
14
----"-- --~---.. --- ----------~
--------
CITY OF ARROYO GRANDE:
2003 ORAf'T ,,",OUS\NG
E\...EtAEN'T
","TV OF
CitY council
lto'JEtll6Efl11. 2.003
CITY OF ARROYO GRANDE
City Council
Tony M. Ferrara, Mayor
Jim Dickens, Mayor Pro Tern
Thomas A. Runels
Sandy Lubin
Joe Costello
Planning Commission
James Guthrie, Chairman
John Keen
Nan C. Fowler
Tim Brown, Vice Chair
Ed Arnold
Architectural Review Committee
Warren E. Hoag, Chairman
Chuck Fellows, Vice Chair
Jamie Ohler
Melanie Hodges
Amy Miltenberger
Department of Community Development
Rob Strong, Community Development Director
Kelly Heffernon, Associate Planner
Teresa McClish, Contract Associate Planner
Ryan Foster, Assistant Planner
Jim Bergman, Contract Assistant Planner
1
T ABLE OF CONTENTS
CHAPTER 1 - INTRODUCTION PAGE NO.
1.1 Purpose... '" '" .,. ... ... '" ... '" '" ... ... ... ... '" '" ... ... ... ... ... ..... 1
1.2 Relationship to City General Plan................................... 1
1.3 Organization of Housing Element......... ... ......... ... ...... ..... 2
1.4 Public Participation... ... '" ... ...... .., '" ... '" ... ... ... ... ... ... ... '" 2
1.5 Summary of Key Housing Issues.................................... 3
CHAPTER 2 - GOALS, POLICIES, PROGRAMS AND QUANTIFIED OBJECTIVES
2.1 Housing Element Goals, Policies and Programs................ 5
2.2 Summary of Quantified Objectives.................................. 25
CHAPTER 3 - BACKGROUND INFORMATION
3.1 Introduction..................... ..................... ..................... 27
3.2 Demographic Overview................................................ 27
Population Growth......... ............ ...... .., ...... ... ...... ...... 27
Household Data...................................................... 30
Incomes... ... '" .................................... ............ ... .... 32
Employment... .. . . . . . .. . . . . .. ... ... .. . . . . . .. ... ... '" .. . . . . . . . '" '" .. 33
3.3 Housing Characteristics................................................ 34
Types of Housing... ................................................. 34
Rental and Owner-occupied Units............................... 35
Vacancy Rates...... .......................................... ... ..... 35
Overcrowded Units............................................. ..... 35
Age of Housing Units................................................ 36
Condition of Units... ... .., '" .. . . .. ... ... .,. ... . . . . . . '" ... ... . . . ... . 37
Housing Prices........................................................ 37
Rental Unit Rates... ................................. ... ... ............ 38
CHAPTER 4 - REGIONAL HOUSING NEEDS, AFFORDABILITY AND SPECIAL
HOUSING NEEDS
4.1 Regional Housing Needs Determinations........................... 40
4.2 Housing Affordability... ... ... ... ... '" ... ... ... ... ... ... '" ... ... ... ... '" 43
4.3 Special Housing Needs Groups......... ..................... ... ....... 47
Elderly/Senior Households... ... .. . ... ... ... ... ... .., ... ... . .. .. .. .. '" .. 47
Female Heads of Households... ......... ... ... ......... ... ... .......... 48
Large Families............................................................... 48
Farmworker Households...... ............ ..; ...... ...... ... ......... ..... 48
Disabled Persons/Households.......................................... 49
Homeless........................ .., ......... ... ...... ... '" ......... ......... 49
Workforce Housing........................................................ 50
4.4 At Risk Housing Units..................................................... 51
ii
CHAPTER 5 - LAND AND SERVICES FOR RESIDENTIAL DEVELOPMENT
5.1 Land Availability... .. . . .. .. . .. . .. . .. . .. . . . . .. . .. . .. . .. . .. . .. . . .. . .. .. . .. . . .. 52
5.2 Public Services & Utilities to Serve Residential Development.. 69
5.3 Constraints to Housing Development.................. ... ...... ... ... 70
Government Constraints... ... ... ... . .. . . . . .. . . . ... ... .. . . . ... .. . .. .. . 71
Environmental Constraints...... ...... ...... ... ... ... ...... ....... ... 84
Non-Governmental Constraints.................... . .. ... . . . . .. . . . .. 85
5.4 Local Housing Funds.......................................... ..... ...... 87
5.5 Energy Conservation Opportunities and Programs............... 87
5.6 Current and Past Housing Efforts..................................... 88
5.7 General P~an Consistency.................. . . . .. . . .. . . . . .. ... ... . . . . .. .. 96
APPENDIX A - PERSONS CONSULTED.............................. ........... 97
APPENDIX B - BIBLIOGRAPHY... ............ ......... ...... ... ... ...... ... ... ... 98
iii
- ._--_.__.._...._-~--
List of Tables
Table 1 Population Growth 1990-2000 .................................... 27
Table 2 Tenure by Household Size ........................................ 30
Table 3 Tenure by Age of Householder.................................... 31
Table 4 Households by Type... ............... .., ... ... ... ... ...... ... ....... 32
Table 5 Employed Civilian Population 16 Years and Older........... 33
Table 6 Industry... ... ... ... ... .., ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 34
Table 7 Total Housing Units..................... .............................. 35
Table 8 Year Structure Built... ... ... .,. ... ... ... ... ... ... ... ... ... ... ... ... .., 37
Table 9 Home Prices..................... ........................... ... ........ 39
Table 10 Income Group ............ ......... .................................... 41
Table 11 Income Distribution by Households......... ......... ......... .... 41
Table 12 Units By Income Category.......................................... 42
Table 13 Income Limits.............................. ............ ................. 43
Table 14 Affordable Housing Standards-Rents and Sales Prices..... 44
Table 15 Preliminary Housing Opportunity Sites Inventory.............. 53
Table 16 Vil/aae Core Downtown District (VCDJ ............................ 66
Table 17 Villaae ~i)(ecf LIse District ............................................. 6lJ
Table 43 1lJ Urban Land Use Element............................................. 74
Table 4+ 19 City Community Development Department Fee Schedule... 76
Table 20 Resicfential Site Develooment Stancfams... ...... ... . .. ..... . ... 79
Table 21 f'el711lt f'/1)cessina Timeline.......................................... lJ-f
,
List of Maps
Map 1- Regional Map................................................................... 28
Map 2 - Local Map....................................................................... 29
Map 3 - Housing Opportunity Sites Inventory..................................... 65
iv
City of Arroyo Grande 2003 Draft Housing Element
CHAPTER 1 - INTRODUCTION
1.1 Purpose
The purpose of the Housing Element is to identify and provide: 1) An analysis of existing
and projected housing needs; b) a statement of goals, policies, quantified objectives
and financial resources; and c) scheduled programs for the preservation, improvement,
and development of housing. The State Legislature, in its adoption of planning law, has
set forth the following policies toward the provision of housing:
. The availability of housing is of vital importance, and the early attainment of
decent housing and a suitable living environment for every Californian, including
farm workers, is a priority of the highest order.
. The early attainment of this goal requires the cooperative participation of
government and the private sector in an effort to expand housing opportunities
and accommodate the needs of Californians of all economic levels.
. The provision of housing affordable to low and moderate-income households
requires the cooperation of all levels of government.
. Local and State governments have a responsibility to use the powers vested in
them to facilitate the improvement and development of housing to make
adequate provision for the housing needs of all economic segments of the
community.
. The Legislature recognizes that in carrying out this responsibility, each local
government also has the responsibility to consider economic, environmental, and
fiscal factors and community goals set forth in the general plan and to cooperate
with other local governments and the State in addressing regional housing
needs.
The purpose of this document is to comply with Article 10.6 (as amended) of the State
Planning Law and to meet the guidelines set forth for the implementation of Article 10.6.
This document, upon adoption, will replace the Housing Element adopted by the City of
Arroyo Grande on June 22,1993.
This Housing Element includes all of the following information as required by State law:
. Specific goals, measurable objectives, policies and implementation measures.
. Information about the. existing housing stock, covering such items as the amount,
type, cost, tenure, and structural conditions of the units. Other areas of concern
include overcrowding and the needs of special subgroups of the population.
. An analysis of potential barriers to housing production, including both
governmental and non-governmental constraints.
. Information about energy conservation opportunities in housing.
. A summary of the past housing efforts and an analysis of their success or failure.
1.2 Relationship to City General Plan
Housing elements are one of seven elements of the General Plan that every California
city and county is required by State law to prepare. Under State law, a General Plan
1 November 11, 2003
City of Arroyo Grande 2003 Draft Housing Element
must function as an integrated, internally consistent and compatible statement of
values. The housing, land use and circulation elements form the heart of a community
strategy to promote orderly growth and provide housing for all economic segments.
State law is more specific about the content of housing elements than any other portion
of the general plan. The housing element is also the only part of the general plan that is
subject to mandatory deadlines for periodic updates. It is the only element that is legally
subject to review and "certification" by the State.
1.3 Organization of Housing Element
As noted above, the intent of this Housing Element update is to meet the statutory
requi(ements of State housing law. Chapter 1 provides a brief overview of the laws and
its relationship to the General Plan. Chapter 2 is the heart of the document, setting forth
all the goals, policies, programs and objectives for housing in Arroyo Grande. Chapter
3 describes relevant demographics concerning housing needs and issues in the City,
while Chapter 4 discusses the regional housing needs. Finally, Chapter 5 provides an
overview of the City's land availability, public services, constraints to housing
development, as well as a review of past housing efforts as provided in the 1993
Housing Element.
1.4 Public Participation
Housing issues affect the entire community, including residents, employers, and the
public and private sectors. The public participation requirement of the housing element
law presents an opportunity to engage constituents in a discussion, defining overall
housing needs and constraints, as well as problems and the creation of solutions. The
inclusion of community stakeholders in the housing element public participation process
helps ensure appropriate housing strategies are more efficiently and effectively
developed, implemented and evaluated.
To address the public participation requirement, the City Council appointed a Local
Housing Task Force (LHTF) to address housing issues in the City. The LHTF
comprised a number of stakeholders in the community, including a representative of the
building industry, two small builders, two representatives of the realty industry, a
representative of the financial industry, a representative of the housing authority, two
major employers (a school district representative and a hospital administrator), as well
as several citizens at large, including a resident with special experience with developing
affordable housing. The overall purpose of the LHTF was to formulate strategies and
provide preliminary recommendations for the Housing Element to the Planning
Commission and City Council, and to help build consensus on policy direction.
Beginning in November of 2002, the LHTF conducted roughly twelve (12) public
workshops to address housing issues in the City. Each of these workshops was
publicly noticed and was open to the public. The LHTF selected several sub-committees
to address specific issues related to housing needs, which included work force housing,
special needs housing, constraints to housing, and well as a review of financial
resources. The sub-committees prepared reports that were presented to the LHTF as a
whole. The main work product from the LHTF was the preparation of recommendations
regarding goals and polices addressing housing needs that could result in the
preparation of programs. The LHTF, in May of 2003, presented its recommendations in
2 November 11, 2003
City of Arroyo Grande 2003 Draft Housing Element
a report to the Planning Commission. In addition to the LHTF meetings, were several
joint hearings and workshops with the LHTF and the Planning Commission to review
information and reports that had been generated by staff and consultant during the
review process.
Once the LHTF had completed and submitted its report, the Planning Commission held
a number of workshops to consider the LHTF recommendations and to provide direction
to City staff in the preparation of the draft Housing Element. This process has resulted
in the preparation of the draft Housing Element provided herein. Subsequent hearings
will be conducted that will result in the refinement and adoption of a final Housing
Element.
1.5 Summary of Key Housing Issues
Arroyo Grande is one of several cities in San Luis Obispo County that is being affected
by housing pressures and is in need of housing to address the needs of the region.
Some of the key housing issues affecting the county and the City of Arroyo Grande are
highlighted below.
. The key housing issues that have been identified in the preparation of the
housing element is that of affordability of housing. In the late 1990's, housing
costs started to increase dramatically, as represented by the 1990 and 2000
Census data. Since 2000, the issue of affordability has become a significant
regional economic and social issue for the viability of the City and the County.
Currently, less than 20 percent of those residents seeking housing can afford a
median priced housing unit. Rents have also significantly increased. The
increase in sales prices and rents has increased at a rate that is significantly
higher than that of incomes. Expectations are that this issue will continue into
the near future. There is and will be a need to provide substantially more
affordable housing in the City and the County.
. There has been a lack of affordable housing constructed in the City. Almost all
housing constructed has been market rate housing. Most of the housing
constructed has been single-family detached dwelling units. Very few new
condominium or multifamily projects have been proposed by private builders
during the last ten (10) years.
. The stock of affordable multi-family housing in the City needs to be increased to
address housing needs, especially for low and very-low income households.
. One of the key issues affecting affordable housing construction is the price of
land, both unimproved and improved. In many cases, the price of land itself is at
a level that significantly affects the cost of housing, including multi-family housing
units. This is especially important when dealing with the provision of low and
very-low housing units.
. In addition to the cost of land, there are a number of issues that affect the
production of affordable housing. Many of these involve limited City resources,
including financing, insurance and liability, adequate local services, and an
3 November 11, 2003
City of Arroyo Grande 2003 Draft Housing Element
already strained infrastructure. These are more specifically described in the
constraints analysis in Chapter 5.
. In addition to local financial resources, the level of State and federal grants and
funds to support the construction of affordable housing is decreasing. Those
funds that are available seem to be oriented to larger metropolitan areas of the
State. In addition, insurance needed to allow for multi-family rental and
condominium housing has become very limited.
. The dominant housing choice for the development community is the construction
of market rate single-family housing. There is a need to re-orient housing to that
affordable to all income levels.
. According to recent reports and studies, the senior population will increase in the
future, both for existing residents and those re-Iocating from other areas of the
State. It is predicted that there will be a decrease in families staying or locating
in the area. The latter is likely a result of the increasing cost of housing and the
lack of affordable units.
4 November 11, 2003
City of Arroyo Grande 2003 Draft Housing Element
CHAPTER 2 - GOALS, POLICIES, PROGRAMS AND
QUANTIFIED OBJECTIVES
2.1 Housing Element Goals, Policies and Programs
State law requires that the Housing Element contain a "statement of the community's
goals, policies, programs and quantified objectives relative to the maintenance,
improvement, and development of housing". This Chapter describes the proposed
goals, policies, objectives and implementation programs of the Housing element for the
City of Arroyo Grande.
Goals refer to general statements of purpose, and indicate a direction the City will take
with respect to the identified housing problems. Policies are statements of the City's
intent regarding the various housing issues identified, and provide a link between the
goals and the quantified objectives. Programs are steps to be taken to implement the
policies and achieve the quantified objectives. Some of the programs contain
Quantified Objectives, which refer to the number of units that are expected or estimated
to be constructed, conserved or rehabilitated during the time frame of the Housing
Element, January 2001 to July 2008.
Goal A: To provide a continuing supply of affordable housing to meet the needs
of existing and future Arroyo Grande residents in all income categories.
Policies:
A.1. The City shall adopt policies, programs and procedures to attempt to meet
the present and future needs of residents of the City, and to aim at
providing the fair share regional housing need allocated for each income
classification, within identified governmental, market, economic and
natural constraints.
A.2. The City shall continue to utilize the following incentives for the production
of affordable housing: a) allowing secondary dwelling units under
specified criteria; b) allowing manufactured housing on legal parcels in all
residential zones; c) allowing density bonuses for very low, low, and
moderate-income housing, below market housing, and senior housing
projects.
A.3. The City shall give priority to processing housing projects that provide for
affordable housing and MaN-lower 88Rsi88r fee~ v:ai\'8r Sf N8wetieRs
W~8R re"w.88 shall be charaed as an incentive for low and very low-
income housing.
A.4. The City shall establish minimum residential densities that are no lower
than 75 percent of the maximum densities allowed in each zone, with
exceptions made for properties with significant environmental constraints.
5 November 11, 2003
City of Arroyo Grande 2003 Draft Housing Element
AS. The City shall encourage housing compatible with commercial and office
uses and promote "mixed use" and "village core" zoning districts to
facilitate residential uses to be integrated into such areas.
A.6. The City should consider assumption of regulatory control from the State
for manufactured housing, manufactured home parks and mobile home
parks.
A.7. The City has established and applied a zoning district for mobile home
and manufactured home park uses:
a) Existing mobile home and manufactured home parks shall be reviewed
and appropriate Development Code Amendments will be part of the
update process in 2004-05;
b) The City may identify additional opportunities to create more mobile
home and manufactured home parks, or expand and/or redevelop older
existing parks.
AB. The City may annex land on the urban edge to promote orderly growth
and the preservation of open space.
A9. The City shall continue to enable and encourage multiple-family, rental
apartments, senior, mobile home and special needs housing, in
appropriate locations and densities. These multiple family residential
alternative housing types tend to be more affordable than prevailing
single-family residential low and medium density developments.
A10. The City shall review and revise its development regulations, standards
and procedures to encourage increased housing supply.
A11. The City shall continue to utilize and expand the Density Bonus program
to encourage affordable housing supply.
A12. The City shall establish a system to inventory vacant and underutilized
land.
A13. The City shall pursue adequate water sources and conservation programs
to accommodate projected residential development in accordance with the
General Plan.
Programs:
A. 1-1. In addition to imolementina the Water Conservation Proaram adooted
Mav 2003. the City shall investiaate other oroarammatic aODroaches
the Citv will undertake to address the availabilitv of water. The City
shall also inform Atrovo Grande's water and sewer providers about
~rioritizina housing deve/ooment Droiects for lower-income households
for public services. oer Government Code Section 65589.7.
6 November 11, 2003
City of Arroyo Grande 2003 Draft Housing Element
Resoonsible aaencv/deoartment: Community DeveloomentlPublic
Works Departments
Timeframe: July 2004
Fundina: General Fund
Expected Outcome: Reduce water constraints through
.
implementation of the City's
"Water Conservation Proaram",
and developina a "Water Supply
Matrix".
A.2-1. The City shall encourage and publicize the secondary dwelling
program to increase public awareness.
Responsible agency/department: Community Development
Timeframe: Ongoing startina sprina 2004
Funding: General Fund
Expected Outcome: Develop information brochure to
include with the City's
"Staaecoach Express" new,/etter
(distributed auarterlyJ and to have
available at the Community
Development front counter.
Expected outcome is increased
production of secondary units as
an affordable housing alternative.
A. 2-2. The City shaJJ reduce impact fees for the construction of second
.
dweJJinas
Responsible aaency/departments: , City Man~aer/ Finance!
Community Development
Timeframe: January - Jubi( 2004
.
Fundina: General Fund
, .
Expected Outcome: Reduction in impact fees for
second dwellinas adopted 'S part
of the Fee Schedule review and
.
u~date.
A.4-1. The City shaJJ initiate a Development Code Amendment to establish a
.
minimum residential density of 75 IJ8rc~nt of the maximum densities
, ..
allowed in each residential and mix.ed-usfJ zone. with eXCeD~()nS made
for DroDerties with significant environmental constraints as determined
. ".
throuah the CEQA process.
ResDonsible aaenCy/deDartments: Community Deve/oDment
Timeframe: 2004-05
Fundina: General Fund
7 November 11, 2003
-----,------
City of Arroyo Grande 2003 Draft Housing Element
Exoected Outcome: More residential orooerties will be
developed to their full
development Dotentia/.
A.5-1. The Development Code Update shall include minimum residential
densities for properties zoned Mixed Use. Exceptions shall be allowed
for properties with sianificant environmental constraints as determined
throuah the CEqA process.
Responsible aaencv/departments: Community Development
.
Timeframe: 2004-05
Fundina: General Fund
Expected Outcome: Residential uses will be
intearated into mixed use
developments.
A. 9-1. The DeveloDment Code shall be updated to encourage the use of
alternative housina types. such as pre-fabricated homes. for slJ8cial
needs housing
ResDonsible aaencv/deoartments: Community Development
Timeframe: 2004-05
Fundina: General Fund
Exoected Outcome: Increased affordable housing
ootions.
A.10-1. In order to provide financial incentives for all affordable housing, the
City shall evaluate its development standards such as setbacks,
landscaping, community tree ordinance requirements, parking
requirements fSflsflifiest.'r FflfiMstf9RS 's." S9R.'ft." fl{' 8/1sfist Rf1geS
R9MsiR,), road widths, lot coverage, floor-area ratio open space and
height requirements that prevent builders from achieving any density
bonuses.
Responsible agency/department: Community Development
Timeframe: 2004-05
Funding: General Fund
Expected Outcome: Process City-initiated
.
Develooment Code Amendments
to increased allowance for
affordability .
A.11-1. The City shall modify the Density Bonus regulations to expand the
bonus for all affordable units, iFl81w&fiFlS 881fiW1 JM&R<&t ~w8R<f8r88)
~8w&iFlS wRits, as follows:
. The City shall grant, in designated mixed use corridors such as
East Grand Avenue, a density bonus above the State standard for
8 November 11, 2003
City of Arroyo Grande 2003 Draft Housing Element
projects serving households that meet State defined very-low and
low-income income levels (the State requires a minimum 25
percent density bonus for projects that provide either 1 0 percent of
the units for very-low, 20 percent of the units for low-income or 50
percent of the units for senior housing units).
. The City shall grant a density bonus of at least 50 percent for
residential projects in which at least 35 percent of all units
(including the density bonus units) meet State definitions for very-
low and low-income units.
. The City shall grant a density bonus of 30 percent for residential
projects in which at least 20 percent of all units (including the
density bonus units) will be sold to households earning between 80
percent and 120 percent of the county median income (or low and
moderate-income, respectively).
. The City shall grant a density bonus of 20 percent for residential
projects in which at least 50 percent of all units (including the
density bonus units) will be sold to households earning between
120 percent and 150 percent of the county median income
(workforce housing). The City shall limit the density bonus for
above moderate-income housing to the regional housing allocation
of 400 units until 50 percent of the very low, low and moderate-
income allocations are developed. The City shall track the number
and type of housing occupancy permits issued to ensure that
density bonuses are not offered in the above moderate-income
category until this percentage is achieved.
Responsible agency/department: Community Development
Timeframe: 2004-05
Funding: General Fund
Expected Outcome: Increased densities to allow for
more affo rd ability .
A.12-1. The City shall expand its Geographical Information System (GIS)
mapping and planning database to create and maintain a basic
inventory of vacant and underutilized "opportunity sites".
Responsible agency/department: Community Development
Timeframe: On going
Funding: General Fund
Expected Outcome: Creation and maintenance of a
land availability inventory.
9 November 11, 2003
City of Arroyo Grande 2003 Draft Housing Element
Goal B: Ensure that housing that is constructed in the City is affordable to all
income levels.
Policies:
8.1. All residential projects that receive additional densities or other City
incentives to include affordable housing shall be placed into a city-
approved program to maintain the affordability for at least 30 years. Any
sale or change of ownership of these affordable units prior to satisfying the
30-year restriction shall be "rolled over" for another 30-years to protect "at
risk" units. For rental housing, affordability shall be maintained through
recorded agreements between a property owner and the City, its Housing
Authority, or another housing provider approved by the City. For owner-
occupied units, long-term affordability can be maintained by two methods:
a) the property owner agrees to maintain the designated unit as affordable
for the specified period, utilizing a promissory note and deed of trust,
recorded on the property, or b) utilizing an equity-sharing program,
whereby, the equity share returns to the City for use in other affordable
housing projects.
8.2. The City shall require the monitoring of affordable units to ensure ongoing
compliance with the sales limits or rental rates established by agreement
between the City and the developer. The City shall take the necessary
steps to assure compliance with the regulatory agreement, including
consideration of contracting with a housing authority or joining a regional
monitoring agency if one is developed.
8.3. The City shall establish reswee&f lower fees and/or defer collection of
impact fees for very low, low and moderate-income units.
8.4. In order to allow for increased density and thus increased affordability, as
well as allowing for more functional mixed-use projects, the City shall
modify the height limit to accommodate three er ~ere stories. The City
shall also develop fire suppression policies to accommodate the new
height standard.
8.5. The City shall look for innovated ways to provide functional open space
such as using courtyard design, under-structure parking or multi-purpose
features.
8.6. The City may establish parking districts where appropriate to enable
additional density.
8.7. Affordable housing shall not be concentrated into a condensed,
identifiable portion of a development or subdivision but rather dispersed
throughout and integrated into the development as determined acceptable
considering site constraints, size and design.
10 November 11, 2003
City of Arroyo Grande 2003 Draft Housing Element
Programs:
8.1-1. The City shall establish a program for tracking all residential projects
that include affordable housing to ensure that the affordability is
maintained for at least 30 years, and that any sale or change of
ownership ,of these affordable units prior to satisfying the 30-year
restriction shall be "rolled over" for another 30-years to protect "at-risk"
units.
Responsible agency/department: City Manager/Administration and
Community Development
Timeframe: 2004-05
Funding: General Fund
Expected Outcome: Program to monitor affordable
units.
8.2-1. The City shall contract with a housing authority, or similar entity, for the
monitoring of affordable units to ensure compliance.
Responsible agency/department: City Manager/Administration and
Community Development
Timeframe: ~OO~ Oi SQrina 2004
Funding: General Fund
Expected Outcome: Contract aareement aQQroved.
.
Expected outcome is consistent
monitoring of affordable units.
8.3-1. The City shall FeSW8e er sefer t~e 8elle&tieA 8f 100 ,eF8eAt ef
se\'ele,~eAt i~'II&t fee&, e)(8IwsiA8 v:ater liAS &et"ler fee&, modify its
development imoact fee schedule to charge no imoact fees, excludina
water and sewer fees for very low-income housing units, and 75
percent lower fees for low-income housing units.
Responsible agency/department: City Manager/Administration &
Community Development
Timeframe: 2004-05
Funding: General Fund
Expected Outcome: Reduction in costs for affordable
housing by amendina the City's
FeeSched~le to reduce imoact
.
fee reauirements for vef\( low and
low-income housing.
lit3 ~. T~e City &~IIII &8A&iser Fe&!W&iA8 8r &!efeFFiA8 tAe 8ella&tieA ef
&!1iR'ele,MeAt i~'II&t fee&, e)(8Iw&!iA8 weIer 11M &e'Ner fe8&, 8f fifty
'8FeeAt (iOIJ4) fer ~8&!8Ri1t8 iA8e~8 IIA&! ail8Aty fi':8 ,ef_At (~iq~) fer
\.:eFk#eFee ~8W&iA8, &!8fiAe&! 11& 811JRiA8 ffe~ 1 ~Oq, t8 1 iOIJ4 8f t~e
~8&!iIlA iA88~8.
11 November 11, 2003
City of Arroyo Grande 2003 Draft Housing Element
R.8&fJ9R&iiI8 8B8R&yHil9fJ9RFM8Rt: City M9R9B8r.'.~8FMiRi&tr&ti9R &.
CSFMFMWRity (;)svslspFMSRt
TiFMSHFMs: ~004 Oi
FWR&iRS: ~SRSF81 FWR&
Iii)(pssts& OwtSSFMS: ' Rs&wstisR iR SS&t& fer aff8F&a~ls
J::1sw&iRS.
8.4-1. The City shall uodate the Develooment Code to increase the
residential heiaht limit to three stories or 30 feet. whichever is less: a
maximum of 36 feet would be allowable throuah the Minor Use Permit
(MUP) orocess.
Resoonsible aaency/deoartments: Community Deve/ooment
Timeframe: 2004-05
Fundina: General Fund
.
Exoected Outcome: Facilitate increased densities.
8.6-1. The City shall research aoorooriate areas to establish or eXDand
.
existina oarking districts to reduce on-site oarkina reauirements and
thereby enable additional density.
Resoonsible aaency/deoartments: Community Deve/ooment
Timeframe: 2004-05
Fundina: General Fund
Exoected Outcome: Facilitate increased densities.
Goal C: The City shall research and identify various addi~onal financial and other
resources to provide very low and low-income housing for current and future
residents of the City.
Policies:
C.1. The City shall initiate consideration of a tax or other revenue program to
be used for financing or assisting in the financing of very low and low-
income housing. RSV9RU911fflfRlfNS, fR9!USiRJ, But Rei Ifmjf9S te, fflS.'
9BtStfl tRlR9f9."" t1M, .:R9flfiSB9 ;R tR9 tRlRB.:9Rt 9991J1ISR9}' tSH, H.'9S taN 9f S
utili'}" f!MC mar B9 9f1RfJ.V9fflfJ.
C.2. The City shall consider issuance of bonds to finance very low and low-
income housing.
C.3. The City shall aggressively pursue State and federal funds to finance very
low and low-income housing.
C.4. The City shall consider cooperation with non-profit organizations and other
developers for loan and/or grant applications to provide very-low and low-
income housing.
12 November 11, 2003
City of Arroyo Grande 2003 Draft Housing Element
C.5. The City shall create a list of public and private sources to help find
creative funding solutions for the provision of very low and low-income
housing.
Programs:
C. 1-1. The City shall establish criterion for allocatina financial resources from its
In-Lieu Affordable Housina Fund and Redevelooment Aaency (RDA) Low
.
and Moderate Housina Fund to auament verv low and low-income housina
.
develooment. The financial oroiection from the RDA housina set-aside
fund and In-Lieu Affordable Housina Fund for this olannina oeriod (throuah
June 2008) are shown in the table below.
Resoonsible aaency/deoartment: City Manaaer/Communitv
Deve/ooment
Timeframe: 2004-05
Fundina: In-Lieu Affordable Housina
Fund/Redevelooment Aaency
Exoected Outcome: Fundina to finance affordable
. housina.
C.:l 1. rRs eft)' BR8.'.' SSRfilfs/9t 8 ~ll.:9l\' sf 8 9i1}\':.:fJf1 ffJRfilJRf IflSM8Rism ts
S9961-Rlulslfl fiRSR.:9S fertRs ,~fiI!JstfsR sh(S/i' ISl" 8RfiI.'s\'/ iR99IflS
hsws..:rqf.
RSS,SR95JJ.'s 9jSRS}ttlSli8ltmSf'l1: C.:I}' USR8ifJ."
NIflSfRiIflS: :lOtH Qi
FhlRfilJRf: QSRSRiI FWf'le/Rs8s\1fi!SlIfiRSRt
AifJRS}'
.J(,sstsfiI gWt9SfiRS: FWRfiliRJ Ifl "R8RSS sffeiVsJJ.'fl
RSIsI8.:Rf.
C.4-1. The City shall meet with local non-profit and private developers semi-
annually. or more freauently if oooortunities arise. to promote the very low
.
and low-income housing programs outlined in the Housing Element. The
City shall direct private housing developers to funding sources (such as
federal and State housina arant fund oroarams and local housina trust
funds) to promote affordable housing as outlined in the policies of Goal C.
Responsible agency/department: Community Development
13 November 11, 2003
City of Arroyo Grande 2003 Draft Housing Element
Timeframe: OR S8iRS Semiannuallv startina
in 2004
Funding: General Fund
Expected Outcome: Increased awareness of the
City's desire to provide affordable
housing and to accommodate
affordable housing.
C.4-2. The City shall oarticioate in financial incentive oroarams established by
the San Luis Obisoo County Housina Trust Fund (newlv established local
non-orofit aaencv), such as a revolvina loan oroaram.
Resoonsible aaencv/deoartment: City Manaaer/Community
.
Develooment
Timeframe: 2004-2008
Fundina: General Fund/Redevelooment
Aaencv
Exoected Outcome: Leveraae of financial resources
to auament develooment of
affordable housina.
Goal D: In order to provide affordable housing, especially for very-low and low-
income households, apartment construction shall be encouraged.
Policies:
D.1. The City shall consider creating a specific land use zone restricted to
apartments.
D.2. The City shall relax parking standards for apartments containing very low,
low, moderate and/or senior housing.
D.3. For the purposes of calculating density, fees and other development
standards, an apartment is defined as follows:
. A dwelling unit equivalent equals two bedrooms, or more;
. A one-bedroom equals 0.7 of unit and is defined as 850 square
feet or less;
. A studio equals 0.5 of a unit and is defined as 600 square feet
or less.
Programs:
D.1-1. The City shall encourage specific plans for land within its Sphere of
Influence that include at least 25% of residential capacity for apartment
development.
Responsible agency/department: Community Development
Timeframe: 2004/2005
Funding: General Fund
14 November 11, 2003
City of Arroyo Grande 2003 Draft Housing Element
Expected Outcome: Possible increased land inventory
to support affordable housing.
D.2-1. Parking requirements for apartments shall be as follows:
. Studio units require one parking space;
. One bedroom units require one and a half spaces;
. Two bedroom units and above require two spaces plus ~ space
for each additional bedroom;
. On-site guest parking requirements can be waived or reduced
subject to approval of the Community Development Director
through the Minor Use Permit (MUP) process.
Responsible agency/department: Community Development
Timeframe: 2004-05
Funding: General Fund
Expected Outcome: Possible reduction in
development standards to
increase the affordability of
housing.
Goal E: Residential condominium conversions shall be regulated both to protect
the City's supply of apartments and to allow more moderately priced for-sale
homes.
Policies:
E.1. Apartments can only be converted and sold as residential condominiums
to families earning State-defined very low, low or moderate-income levels,
to the extent allowed by law.
E.2. The City shall set a limit on how many rental units can be converted
annually not to exceed the annual average of new rental apartments
constructed.
E.3. To the extent provided by law, the property owner shall give the current
residents the first right of refusal to buy the units being converted,
providing they meet the income guidelines.
EA. Residential condo conversion units,shall remain affordable through a thirty
(30) year deed restriction, or the property owner may participate in a
"shared equity program" with the City.
Programs:
E.1-1. Prior to approving any residential condominium conversions, the City
shall establish a monitoring program to ensure ongoing compliance
with the affordable price controls established in the agreement
between and City and the developer.
15 November 11, 2003
City of Arroyo Grande 2003 Draft Housing Element
Responsible agency/department: Community Development
Timeframe: 2004-05
Funding: General Fund
Expected Outcome: Ensure the affordability of
conversions.
E.2-1. The City shall not approve condominium conversion projects in any
one calendar year resulting in more units being converted than the
number of multi-family rental dwellings added to the City's housing
stock during the preceding year. The number of multi-family rental
units added in one year shall be determined as follows: From January
1st through December 31st, the total number of multi-family rental units
given a final building inspection and occupancy permit minus the
number of such units demolished, removed from the City, or converted
to nonresidential use.
Responsible agency/department: Community Development
Timeframe: On-going upon adoption of
regulations
Funding: General Fund
Expected Outcome: Control of possible affordable
apartment conversions to market
rate condominiums.
E.4-1. When necessarv.,t+he City shall establish a "shared equity program"
whereby the owner may sell the affordably restricted property within
thirty (30) years of initial sale by sharing the difference in the market
value to the restricted value with the City upon resale of the affordable
unit. Funds generated would then be used to develop additional
affordable housing within'the City.
Responsible agency/department: Community Development
Timeframe: 2004-05
Funding: General Fund
Expected Outcome: Maintaining affordability of
residential condominium
conversions.
Goal F: The City's inclusionary housing ordinance shall be strengthened to
require more affordable units in housing and commercial development projects.
Policies:
F.1. The City shall require housing projects greater than nine (9) units to
contain inclusionary housing. The City may require payment of an in-lieu
fee for housing projects containing up to nine (9) units. An inclusionary
unit is defined as one that will meet the State's standards for affordable
housing.
16 November 11, 2003
City of Arroyo Grande 2003 Draft Housing Element
F.2. The City shall offer multiple options for providing the inclusionary unit(s)
particularly for projects proposed for neighborhoods unable to sustain the
density bonus.
F.3. New commercial and industrial development shall be subject to
inclusionary housing requirements.
FA. An "affordable housing agreement" shall be established for projects
subject to the inclusionary housing ordinance.
Programs: The City's inclusionary housing ordinance shall be amended as
follows:
F.1-1. At least ten percent (10%) of every housing project greater than nine
(9) units shall contain inclusionary housing. Builders shall receive a
density bonus of at least equal in number to the inclusionary
requirement.
Responsible agency/department: Community Development
Timeframe: 2004-05
Funding: General Fund
Expected Outcome: Increased provision for affordable
housing units.
F.2-1. The City shall consider alternatives to construction of inclusionary units
on-site, such as land dedication, off-site development, or payment of
in-lieu fees, subject to the City's determination that the alternative
meets the need for affordable housing at least as well as on-site
inclusionary units.
The in-lieu fee per dwelling unit of those projects not providing an
affordable unit shall be calculated based upon the difference between
the median home value in the City and the median value of a moderate
income dwelling, divided by ten. The amount of the in-lieu fee shall be
established on a quarterly basis unless otherwise established by the
City.
Responsible agency/department: Community Development
Timeframe: 2004-05
Funding: General Fund
Expected Outcome: Increased provision for affordable
housing units.
F.3-1. The City shall conduct a study'to determine the appropriate
inclusionary housing requirement for commercial development.
17 November 11, 2003
City of Arroyo Grande 2003 Draft Housing Element
Responsible agency/department: Community Development
Timeframe: 2004-05
Funding: General Fund/Redevelopment
Agency
Expected Outcome: Recommendations for
commercial inclusionary housing
requirements.
F .4-1. As a condition of development approval for applicable discretionary
projects, applicants shall submit an "affordable housing agreement" for
City approval. The final agreement shall be recorded and relevant
terms and conditions shall be recorded as a deed restriction on those
lots or affordable units subject to affordability requirements. The City
shall develoD a standard aareement form.
Responsible agency/department: Community Development
Timeframe: 2004-05
Funding: General Fund/Redevelopment
Agency.
Expected Outcome: Maintaining afford ability of units.
Goal G: Create clearer regulations and streamline the approval process.
Policies:
G.1. The City shall allow staff to grant Minor Use Permits (MUP) for projects
proposing minor deviations from Development Code standards. The
appeal process shall be amended to discourage superfluous appeals.
G.2. The City shall encourage public participation and public agency review
with pre-application submittals.
G.3. The City shall review and periodically amend its Development Code and
design review regulations and procedures to streamline permit processing
for affordable housing projects and minimize application and development
review costs.
Programs:
G.1-1. A Minor Use Permit (MUP) application shall be processed for projects
including affordable housing to allow for reductions within ten percent
(10%) of Development Code standards. Any appeal for such approvals
shall equal the cost of processing the appeal and holding the hearing.
The City Council may refund the appeal fee if it determines the appeal
is in the public interest.
Responsible agency/department: Community Development
Timeframe: On-going upon adoption of
regulation.
Funding: General Fund
18 November 11, 2003
City of Arroyo Grande 2003 Draft Housing Element
Expected Outcome: Streamlining review process to
reduce development costs of
housing.
G.2-1. The City shall maintain a mailing list of persons interested in
development projects containing affordable housing. Agendas for all
City meetings related to these projects shall be mailed to persons on
the mailing list. The City shall also post the agendas on the City's
website.
Responsible agency/department: Community Development
Timeframe: 2004-05
Funding: General Fund
Expected Outcome: Increased public awareness of
affordable housing projects.
Goal H: Conserve and rehabilitate the City's older stock, particularly to provide
affordable housing.
Policies:
H.1. The City shall encourage private and public financing of affordable
housing rehabilitation.
H.2. The City shall ensure that public affordable housing projects are planned
,to minimize adverse impacts on the quality and stability of residential
neighborhoods.
Programs:
H.1-1. The City shall continue to contract and coordinate with the San Luis
Obispo Housing Authority to maintain and expand Section 8 rental
housing assistance to qualified households.
Responsible agency/department: Community
Development/Redevelopment
Agency
Timeframe: On-going
Funding: General Fund/Redevelopment
Agency
Expected Outcome: Continued affordable housing.
H.1-2. The City shall continue to apply for Community Development Block
Grant (CDBG) funding for rehabilitation of very low, low and moderate-
income housing for both owner-occupied and rental units.
Rehabilitation of second story residential units in the Village Core
and/or mixed use housing within the East Grand Avenue corridor shall
be considered for such programs.
19 November 11, 2003
City of Arroyo Grande 2003 Draft Housing Element
Responsible agency/department: Community Development/City
Manager/Redevelopment Agency
Timeframe: On-going
Funding: General Fund/Redevelopment
Agency
Expected Outcome: Conservation of existing
affordable housing units.
H.2-1. The City shall consider abatement of unsafe or unsanitary structures,
including buildings or rooms inappropriately used for housing contrary
to adopted health and safety codes. Where feasible, the City will
encourage rehabilitation and allow reasonable notice and time to
correct deficiencies. Where necessary and feasible, very low and low
income residents displaced by abatement action shall be eligible for
relocation assistance, subject to Council or Redevelopment Agency
approval.
Responsible agency/department: Building Department/Community
Development/Redevelopment
Agency
Timeframe: 2004-05
Funding: General Fund/Redevelopment
Agency
Expected Outcome: Conservation of existing housing
stock.
Preservation of At-Risk Units: City records indicate that there are not any at-risk units
in the City at this time. However, if a City affordable housing program is successful, this
may be an issue in the future. The policies below are designed to protect any future at
risk units.
Goal I: Preservation of at-risk units in Arroyo Grande
Policies:
1.1. The City shall establish a notification procedure to occupants of affordable
housing units of conversion to market rate units.
Programs:
1.1-1. At least one-year prior written notice shall be required prior to the
conversion of any units for low-income households to market rate units
in any of the following circumstances:
. The units were constructed with the aid of government funding
. The units were required by an inclusionary zoning ordinance
. The project wa's granted a density bonus
. The project received other incentives
Such notice shall at a minimum be given to the following:
20 November 11, 2003
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City of Arroyo Grande 2003 Draft Housing Element
. The City of Arroyo Grande
. State Department of Housing and Community Development
. San Luis Obispo Housing Authority
. Residents of at-risk units '
Responsible agency/department: Community Development
Timeframe: 2005
Funding: General Fund/Redevelopment
Agency
Expected Outcome: Preservation of existing
affordable units.
Special Needs
Goal J: To meet the housing needs of special groups of Arroyo Grande
residents, including seniors, single parents, large families, and farmworkers.
Policies:
J.1. The City shall encourage and shall seek funding to assist in the
development of low and moderate-income senior rentals.
J.2. The City shall permit larger group housing for seniors in appropriate
multiple-family or mixed-use locations, subject to discretionary review.
J.3. The City shall continue to allow small-scale group housing in multiple-
family residential districts, in accordance with ,applicable State laws.
J.4. The City shall encourage multiple-family housing projects that include a
portion of the units with 3 or more bedrooms to accommodate larger
families.
J.5. The development of housing for farmworkers shall be encouraged.
F armworker housing may be authorized in non-prime lands zoned
Agriculture as well as mixed-use or multiple-family residential zones.
J.6. Co-housing and similar unconventional housing arrangements shall be
considered in appropriate locations subject to review and approval on a
case-by-case basis.
Programs:
J.1-1. The City shall promote housing opportunities for seniors bv identifvina
sites suitable for senior housina and if necessary. initiatina zone
chanaes for those sites as Dart of the Deve/oDment Code UDdate.
Responsible agency/department: Community Development
Timeframe: On-going
Funding: General Fund/Redevelopment
Agency
21 November 11, 2003
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City of Arroyo Grande 2003 Draft Housing Element
Expected Outcome: Increased housing opportunities
for seniors.
J.3-1. The City shall continue to allow for group housing.
Responsible agency/department: Community Development
Timeframe: On-going
Funding: General Fund
Expected Outcome: Increased housing opportunities.
J.4-1. The City shall consider residential Development Code Amendments
(such as areater lot coveraae and floor area ratios for residences with
more than four bedroom) to Fe"wiFe encouraae iFl81weiaFl deve/ooment
of housing to support large families.
Responsible agency/department: Community Development
Timeframe: OFl saiFlS 2004-05
Funding: General Fund
Expected Outcome: Additional housing for large
families.
J.5-1. The Deve/ooment Code shall be uodated to include orovisions for
deve/ooment of Farmworker housina on oro~rties zoned Aqriculture ,
Mixed-Use. and Aoartments.
Resoonsible aaencv/deoartment: Community Develooment
.
Timeframe: 2004/05
Fundina: General Fund
,
Exoected Outcome: Additional housina for
.
farmworkers.
The Homeless
Goal K: To reduce or minimize the incidence of homeless in the community.
Policies:
K.1. The City shall consider joint powers development and cooperation
agreements to develop homeless shelters and related services, or
participate in the operations and maintenance of countywide or south
county regional homeless shelter facilities.
K.2. The City may enable homeless shelter for overnight lodging in appropriate
zoning districts as part of the Development Code Update.
Programs:
K.1-1. The City shall cooperate with other cities, the county and other
agencies in the development of programs aimed at providing homeless
shelters and related services.
22 November 11, 2003
City of Arroyo Grande 2003 Draft Housing Element
Responsible agency/department: Community Development/City
Manager
Timeframe: On-going
Funding: General Fund
Expected Outcome: Continued cooperation in
providing homeless shelter and
services.
K.2-1. The City shall consider Development Code update to allow homeless
shelters for overnight housing in appropriate locations. Emeraency
and Homeless shelters are currently allowed throuah the Conditional
Use Permit orOcess in all Commercial districts (GC. VC. O. HCJ. the
.
Public Facilities (PFJ district. and the Condominiumffownhouse (MFJ,
,
Aoartments (MFAJ and Senior Housina (SRJ residential districts. The
Develooment Code shall be uodated to reauire administrative 8l}oroval
. ..
only for eme"l.encY and home/~ss shelters in all commercial districts.
Responsible agency/department: Community Development
Timeframe: 2004-05
Funding: General Fund
Expected Outcome: Regulations that allow overnight
homeless housing.
Disabled Persons
Goal L: To ensure that those residents with handicaps or disabilities have
adequate access to housing.
Policies:
L.1. The City shall ensure that all new multiple family developments comply
with the handicapped provisions of the California Building Code and ADA.
L.2. The City shall ensure, through the design review process for multiple
housing projects, that the design of the development, from parking
locations, pedestrian walkways, and direct access to the housing units
accommodates handicapped or disabled access.
Programs:
L.1-1. The City shall enforce building code disabled access and design
provisions.
Responsible agency/department: Building Department/Community
Development
Timeframe: On-going
Funding: General Fund
Expected Outcome: Provide access and design
provisions for disabled persons in
new housing developments.
23 November 11, 2003
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City of Arroyo Grande 2003 Draft Housing Element
Energy Conservation
Goal M: To increase the efficiency of energy use in new and existing homes, with
a concurrent reduction in housing costs to Arroyo Grande residents.
Policies:
M.1. All new dwelling units shall be required to meet current State and local
requirements for energy efficiency. The retrofitting of existing units shall
be encouraged.
M.2. New land use patterns shall encourage energy efficiency.
Programs:
M.1-1. The City shall implement a water and electrical retrofit program for
existing housing units.
Responsible agency/department: Building Department
Timeframe: 2004-05
Funding: General Fund/PG&E
Expected Outcome: Reduce usage of water and
electrical resources.
M.2-1. Housing units of proposed development projects shall be designed for
optimal solar access. The applicant shall show on the project plans
how this is achieved.
Responsible agency/department: Building Department
Timeframe: On-going
Funding: General Fund
Expected Outcome: More energy efficient housing
development.
Equal Opportunity
Goal N: To assure access to sound, affordable housing for all persons,
regardless of race, creed, age or sex.
Policies:
N.1. The City declares that all persons, regardless of race, creed, age, or sex,
shall have equal access to sound and affordable housing.
Programs:
N.1-1. The City will promote the enforcement of policies of the State Fair
Employment and Housing Commission. and shall resolve housina
discrimination comDlaints throuah assistance from HUD. and/or local.
.
reaional Drivate fair housina oraanizations.
24 November 11, 2003
City of Arroyo Grande 2003 Draft Housing Element
Responsible agency/department: All City Departments
Timeframe: On-going, startina sDrina 2004
Funding: General Fund
Expected Outcome: Dissemination Qi&trilawti8R of
information at the front counter of
all City DeDartments.
Housing Element Implementation
Goal 0: To ensure participation of all economic segments of the community in
the development of housing policy for Arroyo Grande.
Policies:
0.1. The City shall encourage the participation of all residents of Arroyo
Grande in the development of housing policies for the City.
0.2. The City shall provide a brief summary of key information about housing-
related issues in English and Spanish to help ensure widespread notice to
all residents.
Programs:
0.1-1. Prior to any public hearing where the City is considering amending or
updating its Housing Element or housing policies, the City will notify all
local housing organizations, as well as social service agencies, and
post notices at significant locations in both English and Spanish.
Responsible agency/department: Community Development
Timeframe: On-going
Funding: General Fund
Expected Outcome: Provide information about
housing programs.
Goal P: To utilize Redevelopment Agency funding to support affordable housing.
Policies:
P.1. The City Redevelopment Agency shall encourage affordable housing.
Programs:
P.1-1. The City Redeveropment Agency shall develop a program whereby
their housing set-a-side funds are utilized primarily to support low and
very-low income housing.
Responsible agency/department: Redevelopment Agency
Timeframe: 2004-05
Funding: Redevelopment Agency
Expected Outcome: Additional funding to support low
and very-low income housing.
25 Novernber11,2003
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City of Arroyo Grande 2003 Draft Housing Element
2.2 Summary of Quantified Objectives
The Final Environmental Impact Report prepared for the City's 2001 General Plan
Update identified impacts to water resources, air quality and transportation/circulation
as being potentially significant despite mitigation, necessitating adoption of a Statement
of Overriding Considerations for approval of the General Plan. The water resources
currently available to the City are 3,590 acre feet per year, which is considered the
minimum supply during drought conditions capable of supporting a City of 20,000
residents (based on an average per capita rate of consumption of 160 gallons per day).
This 20,000 population is considered build out for the City of Arroyo Grande, and is
expected to be reached in the year 2021 given the recent trend of 1% average annual
population growth experienced during the last ten years. The Regional Housing Needs
Allocation of 1,192 units would have the City reach build out during the next five years,
or by 2008, rather than over a twenty year period as intended by the adopted 2001
General Plan.
A more recent accounting of the City's water resources and current rate of water
consumption show that the City is utilizing approximately 94% of its total water supply.
Although the 2003 Water Conservation Plan for the City is expected to reduce the
average annual per capita consumption, the current water supply is not able to
accommodate the Regional Housing Needs Allocation (RHNA). Given a 6% available
water supply, the City is only able to accommodate an additional 429 housing units
based on current consumption of 190 gallons per day per capita. If the Water
Conservation Plan is successful and consumption is reduced to 160 gallons per person
per day, a total of 509 additional units could be built.
Based on the Preliminary Housing Opportunity Sites Inventory (see Table 15 under
Section 5.1) and excluding the specific "potential" projects accommodated by the 2001
General Plan not yet submitted or evaluated, the inventory indicates approximately 667
"approved or pending" projected units (note that since January 2001., 331 of the 667
residential units have already been issued building permits). It is projected that the prior
decade and recent annual average construction rate of approximately 120 units per
year will drop to less than 100 units per year, in part due to limited remaining sites, but
mostly asa consequence of critical water resource constraints. Even if all the approved
and pending projects are accomplished by July 2008, the community would achieve
only two thirds of the Regional Housing Needs Allocated to the City.
In summary, the City has the land and densities available to accommodate the RHNA
numbers, but not the available water supply. The City's rough quantified objective is
therefore 509 dwelling units.
26 November 11, 2003
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City of Arroyo Grande 2003 Draft Housing Element
CHAPTER 3 - BACKGROUND INFORMATION
3.1 Introduction
The City of Arroyo Grande occupies 5.45 square miles (3,388 acres) of land along
Highway 101 in southwestern San Luis Obispo County, as shown on Map 1. It is
immediately adjacent to the west, southwest and south to urban development within the
cities of Pismo Beach and Grover Beach, and the unincorporated community of
Oceano, as shown on Map 2. Unincorporated lands adjoin the City to the north, east
and south. Residential rural and suburban developments characterize unincorporated
areas to the north and southeast of the City, while agricultural uses dominate the Arroyo
Grande Valley that extends northeast and the Cienega Valley south of the City. Arroyo
Grande Creek runs in a generally north-south direction through the eastern portion of
the City.
3.2 Demographic Overview
Population Growth
The City of Arroyo Grande's population has grown from 3,291 in 1960 to 15,851, based
on the 2000 Census. Population growth during the 1960's occurred rapidly, some years
exceeding 12 percent. In the 1970's, growth slowed to an average of 7 percent, falling
still further in the 1980's to less than 2 percent from 1980 to 1990. Annual population
increases of less than one percent have been experienced during and since the 1990's.
According to the 2000 Census, Arroyo Grande grew 10.2 percent since 1990 to a 2000
population of 15,851. Table 1 depicts the growth that has occurred in Arroyo Grande
from 1990 to 2000 as compared to the adjoining cities of Pismo Beach, Grover Beach,
the County of San Luis Obispo, and the State of California. This table indicates that the
growth that occurred in Arroyo Grande in the 1990's was less than the surrounding
commu'1ities and below the State average.
1990 2000 Increase 1990-2000 % Increase 1990-2000
Arro 0 Grande 14,378 15,851 1,473 10.2
Grover Beach 11,656 13,067 1,411 12.1
Pismo Beach 7,669 8,551 882 11.5
SLO Coun 217,162 246,681 29,519 13.6
California 29,760,021 33,871,648 4,111,627 13.8
Since 2000, Arroyo Grande has continued growth at a similar rate as in the 1990's. The
State Department of Finance (DOF), as of January 1, 2002, estimated the population of
Arroyo Grande to be 16,924. DOF has estimated the population growth through 2008,
which corresponds to the Housing Element planning period, will average approximately
1 percent annually, with a population of 17,787 in 2008. Current estimates by the San
Luis Obispo Council of Governments project the City's General Plan build-out
population of approximately 20,000 residents by 2023, based upon an annual growth
rate of 1 percent.
27 November 11, 2003
City of Arroyo Grande 2003 Draft Housing Element
MAP 1 - REGIONAL LOCATION MAP
28 November 11, 2003
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City of Arroyo Grande 2003 Draft Housing Element
MAP 2 - SOUTH COUNTY LOCATION MAP
29 November 11, 2003
City of Arroyo Grande 2003 Draft Housing Element
Household Data
Household Size. The overall average household size in Arroyo Grande is 2.41, with
owner-occupied units averaging 2.45 persons per household and renter-occupied units
averaging 2.33 persons per household. For comparison purposes, the City's average
household size in 1990 was 2.48. The State of California has a larger household size of
2.87 persons per household, as well as the San Luis Obispo County unincorporated
area, which has an average household size of 2.49 persons per household.
Tenure bv Household Size. Table 2 provides specific information on household sizes
based upon persons per unit for both owner-occupied and renter-occupied housing
units. For owner-occupied units, the highest percentage is that of a two-person
household, followed by a one-person household. This suggests that more than 60
percent of owner-occupied units are either studios, one or two-bedroom units; more
than 25 percent are three-bedroom units; and less than 10 percent are four bedrooms
or greater.
For renter-occupied units, the highest percentage is a one-person household, followed
by a two-person household. The implication about the types of rental housing units is
roughly same as for the owner-occupied housing units, with the majority of renters
occupying studio, one and two-bedroom units. Clearly, a four-person household, which
is commonly utilized for establishing median incomes, is generally a much smaller
percentage than the one and two person household. These figures are generally lower
than the statewide or unincorporated San Luis Obispo County-wide averages.
Number Percent
Owner-occu ied housin units 4,528 100.0
1- erson household 1,032 22.8
2- erson household 1,876 41.4
3- erson household 652 14.4
4- erson household 624 13.8
5- erson household 248 5.5
6- erson household 62 1.4
7 -or-more erson household 34 0.8
Renter-occu ied housin units 1,950 100.0
1- erson household 734 37.6
2- erson household 512 26.3
3- erson household 300 15.4
4- erson household 238 12.2
5- erson household 104 5.3
6- erson household 41 2.1
7 ~or-more erson household 21 1.1
30 November 11, 2003
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City of Arroyo Grande 2003 Draft Housing Element
Tenure bv Aae of Householder. Table 3 indicates the occupancy of housing units by
age of the householder. The largest percentage by age of householder is that of the 65
and older range for owner-occupied units, followed by the 45 to 54 age range. For
renter-occupied housing units, there is not as much of a dominant age group, with the
25-34 and 35-44 age range having the higher percentages.
Number Percent
units 4,528 100.0
16 0.4
260 5.7
820 18.1
1,014 22.4
720 15.9
1,698 37.5
782 17.3
679 15
237 ' 5.2
Number Percent
Renter-occuDied housina units 1,950 100.0
15 to 24 173 8.9
25 to 34 432 22.2
35 to 44 467 23.9
45 to 54 342 17.5
55 to 64 151 7.7
65 years and over ,385 19.7
65 to 74 150 7.7
175 to 84 166 8.5
85 years and over 69 3.5
Households by Tvoe. According to the 2000 Census, 67.2 percent of Arroyo Grande's
.
population was family households, and 32.8 percent were in non-family households.
Table 4 provides the complete information on households by type.'
31 November 11, 2003
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City of Arroyo Grande 2003 Draft Housing Element
Number Percent
6,478 100.0
4,350 67.2
1,881 29.0
3,561 55.0
1,423 22.0
612 9.4
365 5.6
2,128 32.8
1,766 27.3
933 14.4
Households with individuals under 18 ears 2,025 31.3
Households with individuals 65 ears and over 2,219 34.3
2.41 n/a
2.94 n/a
Ethnic Comoosition. According to the 2000 Census, Arroyo Grande's population is 11.2
percent Hispanic and 88.8 percent not Hispanic. Of the not Hispanic, white alone
makes up 82.7 percent of the population, with the remaining population being African
American, American Indian, Asian, or Pacific Islander.
Aae and Sex Distribution. Based upon the 2000 Census, it is noted that 25.6 percent
of the population of Arroyo Grande is 19 years and under, 44.3 percent of the
population is between 20 and 54 years, and 30.1 percent is 55 years or older. The
highest percentage (15.6%) is in the 35 to 44 age range, followed by the 45 to 54 age
range (15%). The median age in years is 41.9. These statistics generally reflect an
older age range than the State as a whole, with a higher percentage of those
considered in a senior range (55 or over). The ratio of male to female in the total
population for Arroyo Grande is male (47.1 %) to female (52.9%).
Comparing the above to the 1990 Census, 25.7% of the population was 19 years and
under, 45.5% were between 20 and 54 years, and 28.7% were 55 years and older. This
is generally similar to the 2000 statistics, with the exception of a small increase in the
senior population. The ratio of male to female in 1990 was generally the same as the
2000 figures.
Incomes
According to 2000 Census data, the median income for Arroyo Grande households as
of 1999 was $48,236. This compares to a 1989 median household income (1990
Census) of $34,796. The median income for the households for the State as a whole in
32 Novernber11,2003
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City of Arroyo Grande 2003 Draft Housing Element
1999 was $47,493. The State 1999 median family income was $55,494, compared to a
1989 figure of $40,504. The median income for families for the State as a whole in
1999 was $53,025. The per capita income for 1999 was $24,311, compared to $16,583
in 1989. The per capita income for 1999 for the State as a whole was $22,711.
The largest percentage income category for household income in 1999 was in the
$50,000 to $74,999 range (25.3%). This compares to the largest percentage income
category for household income in 1989 of $35,000 to $49,999 (21.2%).
Another method to evaluate income is to determine levels of poverty status in a
community. According to the 2000 Census and based upon 1999 incomes, 191 families
or 4.3 percent in Arroyo Grande were considered below the poverty level. This
compares to 1990 Census data (1989 incomes) for 262 families or 6.4% that were
considered to be below the poverty level.
Employment
The 2000 Census provides data on employment for Arroyo Grande residents. Table 5
provides a breakdown of the employed population 16 years and older by occupation.
The largest percentage category is that of management, professional, and related
occupations (37.5%). The second largest category (29.7%) is that of sales and office
occupations. Table 6 provides a breakdown of employed residents by industry. The
largest industry category is that of educational, health and social services (20.4%),
followed by retail trade (14.5%).
Number Percent
2,691 37.5
1,115 15.5
2,130 29.7
34 0.5
612 8.5
599 8.3
7,181 100.0
The State Economic Development Department (EDD) provides statistics on job growth.
EDD has reported that job growth in Arroyo Grand in the period of 1991 to 2000
increased by 1,230, or 15.95 percent (1.595 percent annually). EDD has forecasted
that Arroyo Grande will increase jobs by 1,320 in the period of 2001 through 2008
(current housing planning period), for an increase of 14.35 percent overthe 8-year
period, or 1.79 percent annually. It is assumed that, based upon recent employment
trends, the majority of the job growth in Arroyo Grande will be in the retail trade and
government sectors (e.g. education, health, etc.).
33 November 11, 2003
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City of Arroyo Grande 2003 Draft Housing Element
riculture, forest 156
Construction 518
Manufacturin 471
holesale trade 255 3.6
Retail trade 1,042 14.5
rans ortation and warehousin ,and utilities 551 7.7
Information 196 2.7
Finance, insurance, real estate, and rental and leas in 363 5.1
Professional, scientific, mana ement, administrative & waste mana ement services 680 9.5
Educational, health and social services 1,468 20.4
rts, entertainment, recreation, accommodation and food services 621 8.6
Other services exce t ublic administration 416 5.8
Public administration 444 6.2
Another issue related to employment and residency is the matter of commuting to work.
Census data indicates that of the 7,095 area workers 16 years and over 5,696 or 80.3
percent drove to work. Only 16 or 0.2 percent utilized public transportation. The mean
travel time to work was 21.6 minutes. This would apparently indicate that a majority of
the City's working residents are commuting to jobs outside of Arroyo Grande.
3.3 Housing Characteristics
Types of Housing
As of the 2000 census, there were 6,806 housing units in the City of Arroyo Grande, a
747 unit increase from 1990. Table 7 provides a breakdown ofthe total housing units
by type of structure. As indicated, the vast majority of the units (75%) in Arroyo Grande
are single-family units. Since January 2001, according to the City's Building
Department records, an additional 431 dwelling units have been permitted.
34 November 11, 2003
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City of Arroyo Grande 2003 Draft Housing Element
otal Housin Units
Units in Structure
1-unit, detached 4,516 66.4
1-unit, attached 590 8.7
units 111 1.6
3 or 4 units 382 5.
5 to 9 units 181 2.
10 to 19 'units 136 2.
o or more units 337 5.
obile home 544 8.
Boat, RV, van, etc. 9 0.1
Rental and owner-occupied Units
Of the 6,478 occupied housing units in the City based upon the 2000 Census, 4,528 or
69.9 percent were owner-occupied in 2000, while 1,950 or 30.1 percent were renter-
occupied. In addition to the occupied units, the Census reported 272 vacant units, 116
units for seasonal, recreational or occasional use. No migratory or transitional units
were reported.
Vacancy Rates
Vacancy rates are commonly used as an indicator of housing market activity in a given
area. The individual vacancy rate for a community theoretically measures the health of
the local housing market. The vacancy rate is a percentage of the total housing stock
that is vacant and/or available for sale or rent at anyone time. Generally, a 2 percent
vacancy rate in units available for owner-occupancy and a 6 percent rate for rental units
are considered desirable to keep prices down and to ensure that units are available to
new and relocating residents.
The 2000 Census provides data on housing units and their vacancy rates. For Arroyo
Grande, it was reported that there was a 0.8 vacancy rate for owner-occupied units and
a 2.9 percent vacancy rate for rental units. This is below the optimal rates described
above and indicates a shortage of housing units in the City. However, this is not an
uncommon statistic in the south San Luis Obispo County area. Grover Beach has an
overall total unit vacancy rate of 2.9 percent, Pismo Beach as a rate of 5.1 percent,
while the City of San Luis Obispo has an overall rate of 2.8 percent.
Overcrowded Units
A common method of measuring overcrowding is to compare the number of persons to
the number of rooms in the unit. According to State guidelines, overcrowding is defined
as a household that has more than 1.01 persons per room (not including kitchens and
bathrooms). In Arroyo Grande, the data collected from the 2000 Census show that 4
percent of all occupied units were overcrowded, based upon the 1.01 persons per room
35 November 11, 2003
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City of Arroyo Grande 2003 Draft Housing Element
guideline. Census data further indicates that 114 units or 1.7 percent of the total
occupied housing units had between 1.01 and 1.50 occupants per room, and 149 or 2.3
percent of all units had over 1.51 occupants per room.
The 4 percent overcrowded rate is compared to San Luis Obispo County as a whole,
which has a 5.6 percent overcrowded rate, and the State of California, which has an
overall rate of 15.2 percent.
It is noted that the lower rate for Arroyo Grande may be explained by the fact that the
City has a lower rate of persons per household than many communities, which possibly
lowers the incidence of overcrowding. While the rate may in comparison be lower than
many other communities, the incidence of overcrowding is still an issue. The problem of
overcrowding for large families can be addressed by the construction of larger units.
However, the overcrowding issue goes beyond family size to affordability issues. Even
single individual and small families may suffer from overcrowding. Due to limited
incomes and high housing costs and rents, they may be forced to double up with
extended family members or non-relatives in similar circumstances. There is a need to
ensure that larger housing unit sizes, especially for rental units, be constructed in the
City to address the overcrowding issue.
Age of Housing Units
The age of housing is an important characteristic of its relative condition as older units
tend to be in greater need of repair. Many federal and State programs use age of
housing to determine potential housing rehabilitation needs. Typically, the useful life of
major components of an average quality housing structure ranges from 20 to 30 years
for items such as roofing, plumbing, landscaping, paving and electrical. When a
housing unit is over 30 years old, the replacement or refurbishing of major components
is an important factor in the ability of a community to provide safe, decent and sanitary
housing.
Table 8 provides a breakdown of the age of housing units in Arroyo Grande as of the
year 2000. In reviewing this table, the largest percentage of the housing units was
constructed between 1970 and 1979 (28.4%), followed by units built 1980 and 1989
(20.1 %). The table indicates that 292 units were build prior to 1940.
36 November 11, 2003
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City of Arroyo Grande 2003 Draft Housing Element
Year Structure Built Number
1999 to March 2000 211
1995 to 1998 500
1990 to 1994 508
1980 to 1989 1,371
1970 to 1979 1,931
1960 to 1969 958
1940 to 1959 1,035
1939 or earlier 292
Condition of Units
One of the issues required by State housing element law for discussion and analysis is
the condition of the community's housing stock. The purpose for this is to provide a
basis for determining which units are in need of rehabilitation and which units may be
beyond feasible repair and determined to be in need of demolition and replacement.
One of the guidelines set by the State is that units that were constructed before 1960
may be eligible for repair and/or rehabilitation to maintain those units in the existing
housing stock. This is a general criterion, in that many older communities like Arroyo
Grande have many older units that have already,been repaired and/or rehabilitated to
maintain the historical nature of the community.
Based upon the review of Table 8,1,327 or 19.5 percent of the total housing units in the
City were 'built prior to 1960. While these numbers could represent an estimate of the
number of housing units that could be analyzed for rehabilitation need, the 1993
Housing Element survey was conducted to determine the structural conditions of
housing in Arroyo Grande. The structural condition of housing units reported as
"sound", in need of "minor rehabilitation", "moderate rehabilitation", "substantial
rehabilitation", or "dilapidated". The survey utilized a point system to evaluate the
housing units in the City. The results of this survey was that 99.3 percent of the 1993
housing units were in "sound" condition, 0.4 percent or 26 units were in need of "minor
rehabilitation", 0.3 percent or 13 units were in need of "moderate rehabilitation" and 1
unit was in need of "substantial rehabilitation". No units were determined to be
dilapidated. The conclusion of the survey was that virtually all housing units were in
sound condition and the overall appearance of the City is of well maintained homes. To
update the findings of the 1993 housing survey, City staff conducted a windshield
survey of housing units in the older neighborhoods where housing conditions may be an
issue. The survey located less than ten units that appear in need of substantial
rehabilitation or removal.
Housing Prices
One of the key issues affecting the ability to purchase a housing unit in Arroyo Grande
and San Luis Obispo County as a whole is the price of housing units. This is an issue
of importance to the whole Central Coast, including Santa Cruz, Monterey, San Luis
37 November 11, 2003
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City of Arroyo Grande 2003 Draft Housing Element
Obispo, Ventura and Santa Barbara counties. According to the 2000 Census, the
median value of a home in San Luis Obispo County was $230,000.00. For Arroyo
Grande, the Census reported the median value of a home at $233,200.00. Median
means a point where 50 percent of housing prices (or rental rates), are below the listed
number and 50 percent are above. While these statistics reflect housing prices in 2000,
housing prices in San Luis Obispo and Arroyo Grande have significantly increased
since 2000.
A review of current housing prices was conducted. In many counties in the State, data
on median housing prices are reported on a monthly basis for the county as a whole.
Generally, local realtor associations provide this information. In January of 2003, the
San Luis Obispo Tribune newspaper reported the median home prices for all the
individual cities in San Luis Obispo County as well as for the County as a whole. Table
9 provides the median home values as of December 2001 and December 2002, as well
as the percentage change. This table indicates that the median home price for the
County of San Luis Obispo increased 23 percent from 2001 to 2002. For Arroyo
Grande, the median home price in the same period increased 20.51 percent, with a
December 2002 median home price of $473,888.00.
The most recent county median home price was reported by the California Association
of Realtors at $357,380.00 for March of 2003, which is drop from the reported figure in
February, 2003 of $361,610.00.
December 2001 December 2002 Percent
Median rice Median rice chan e
$286,540 $352,320 23.0
$267,500 $356,550 " 33.3
$393,250 $473,888 20.5
$500,000 $481,500 -3.7
$268,000 $249,000 -7.1
$419,500 $475,000 13.2
$320,750 $377,250 17.6
Rental Unit Rates
As with housing prices, rental rates in the Central Coast, San Luis Obispo County, and
the City of Arroyo Grande have become a major issue for those desiring to rent a unit
for occupancy. Again, according to the 2000 Census, median contract rents in San Luis
Obispo County was reported at $654.00 per unit, with median gross rent reported at
$719.00 per unit. For Arroyo Grande, median contract rent was reported at $683.00,
with a median gross rent reported at $725.00. Like housing prices, rents charged for
housing units has significantly increased since those reported in 2000.
38 November 11, 2003
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City of Arroyo Grande 2003 Draft Housing Element
In order to provide a more current reporting of monthly rental rates, a survey of rents
listed in the Tribune Newspaper were tabulated for the City of Arroyo Grande (February,
2003)
Apartments - Rents Home rentals - Rents
1 bedroom - $775.00 2 bedroom - $1,200.00
1 bedroom - $775.00 2 bedroom - $1,295.00
2 bedroom - $795.00 2 bedroom - $1,400.00
2 bedroom - $825.00 2 bedroom - $1,400.00
2 bedroom - $850.00 3 bedroom - $1,200.00
2 bedroom - $900.00 3 bedroom - $1,300.00
2 bedroom - $900.00 3 bedroom - $1,500.00
2 bedroom - $950.00 3 bedroom - $1,500.00
3 bedroom - $1,050.00 3 bedroom - $1,595.00
3 bedroom - $1,750.00
3 bedroom - $1,795.00
3 bedroom - $2,050.00
3 bedroom - $2,485.00
4 bedroom - $1,700.00
4 bedroom - $1,700.00
4 bedroom - $1,800.00
4 bedroom - $2.395.00
While the above rental analysis involves a limited number of housing units that are
available for rent, the data does give a prospective on rents being asked in Arroyo
Grande. For one-bedroom apartments. the average asking rent was $775.00. For two-
bedroom apartments, the average asking rent was $867.00. Only one three-bedroom
unit was listed at $1,050.00. For homes being rented. the average asking rent for a
two-bedroom unit was $1,324.00. For a three-bedroom unit, the average was
$1,686.00. For a four-bedroom unit, the average was $1,899.00.
39 November 11, 2003
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City of Arroyo Grande 2003 Draft Housing Element
CHAPTER 4 - REGIONAL HOUSING NEEDS, AFFORDABILlTY
AND SPECIAL HOUSING NEEDS
4.1 Regional Housing Needs Determinations
State law requires councils of government to prepare Regional Housing Needs Plans
(RHNP) for all cities and counties within their jurisdiction. The intent of the housing
allocation plans is to ensure adequate housing opportunities for persons of varying
incomes and to support housing efforts for the local communities. The State
Department of Housing and Community Development (HCD) provides guidelines for
preparing such plans, and ultimately certifies the plans as adequate. Once the plan is
certified, it provides the basis for local jurisdictions to prepare their housing element
updates as specified by State law.
The entity commissioned to prepare the Regional Housing Needs Plan (RHNP) for San
Luis Obispo County, includi'1g the City of Arroyo Grande, is the San Luis Obispo
Council of Governments (SLOCOG). During 2002, SLOCOG conducted an analysis of
housing needs in the county as well as housing needs set by HCD. To develop
estimates of future housing needs by jurisdiction, SLOCOG evaluated past construction
trends, the relationship between job and housing opportunities, public service
availability, as well as housing needs provided by the State. SLOCOG, in its
preparation of the Plan, considered the following factors in its distribution of the housing
needs to the individual jurisdictions:
. The jurisdiction's employment base and population growth in relation to regional-
wide share of employment and anticipated growth; and
. The extent to which a jurisdiction's current income distribution differs from that of
the regional average: and
. The HCD determined regional housing needs: and
. The capacity of the presently zoned land in the unincorporated county area for
residential development in the above moderate-income category. I
I
The RHNP was adopted by SLOCOG in early 2003 and was subsequently accepted by
HCD. The RHNP is intended to assure that adequate sites and zoning exist to address
anticipated housing demand during the planning period (January 1, 2001 through June
30, 2008). This Plan sets targets to ensure the availability of sites to accommodate the
housing needs of a range of socioeconomic segments of a community. This Plan is
incorporated by reference into this document and is available from SLOCOG.
Within the total number of housing units that need to be accommodated, specified
housing units within specific income levels are designated. State law requires that
RHNP's divide the specified housing allocation into four income groups. The groups are
defined as percentages of county median income. Table 10 displays the criteria for the
four income groups for the City of Arroyo Grande.
40 November 11, 2003
City of Arroyo Grande 2003 Draft Housing Element
Household income is less than 50% of the coun median income.
Household income is between 50% and 80% of the county
Low median income.
Household income is between 80% and 120% of the county
Moderate median income.
bove Household income is greater than 120% of the county median
Moderate income.
Source: HCD Income Definitions
The breakdown of existing households by income categories within Arroyo Grande is
presented in Table 11.
Above
Ve Low Low Moderate Moderate Totals
20% 15% 18% 47% 100%
19% 15% 19% 47% 100%
22% 19% 23% 36% 100%
30% 19% 19% 32% 100%
24% 19% 21% 36% 100%
24% 16% 15% 45% 100%
35% 17% 16% 32% 100%
18% 15% 19% 48% 100%
Re ional Total 23% 16% 18% 43% 100%
Source: San Luis Obis 0 Council of Governments
Table 11 indicates that Arroyo Grande has a higher percentage of housing affordable to
households in the above moderate income category and a lower percentage of housing
available to low and very-low income households. To determine regional housing
allocations by income group, SLOCOG set goals that suggest that jurisdictions move
toward parity in the percentages of housing available for each income group. Thus, to
meet the objective ofthe RHNP, Arroyo Grande should aim to provide a higher
percentage of low and very-low income housing and a lower percentage of above
moderate housing than currently exist.
The Regional Housing Needs Plan or RHNP, as adopted, set forth housing goals for the
City of Arroyo Grande. The total number of dwelling units that needs to be
41 November 11, 2003
City of Arroyo Grande 2003 Draft Housing Element
accommodated during the planning period for Arroyo Grande is 1,192 housing units, as
outlined in Table 12. The allocation for the very low and low income categories is
roughly 45 percent.
223 259
254 304
142 166
122 129
467 520
102 105
644 870
778 929
According to the 1990 Census, there were 6,059 housing units in Arroyo Grande. In
2000, that figure increased to 6,806. Thus during the years between 1990 and 2000,
based upon Census figures, an average of 75 housing units have been constructed
annually in Arroyo Grande. This number has been verified by City building records.
Applying this trend to the next housing planning period (January 1, 2001 to June 30,
2008), 563 housing units would be constructed. However, with the RHNP allocation,
an average annual construction goal of 158 housing units would have to be
accommodated. Thus to meet the goals of the RHNP, additional units per year would
have to be accommodated, particularly for very low and low income households.
Since the beginning of the housing planning period, January 1, 2001, and through June
30,2003,331 housing units have been permitted according to the City Building
Department records. It has been estimated that all of these units are in the above
moderate category. This would reduce the total number of units in the RHNP from
1,192 to 861. However, considering that these units are all in the above moderate
range, it would reduce this income category only, from 400 to 87 remaining. None of
the very-low, low or moderate-income housing units allocated by the RHNP have been
constructed since January 2001.
According to San Luis Obispo County Planning and Building Department, based upon
federal income standards, in March 2003 the median household income for a family of
four in San Luis Obispo County was $57,700.00. Based on the income categories
provided in Table 10, Table 13 indicates the income levels for the four income
categories for 2003.
42 November 11, 2003
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City of Arroyo Grande 2003 Draft Housing Element
Persons in Famil e Low Incom Lower Income Median Income Moderate Incom
1 $20,200 $32,300 $40,400 $48,500
2 $23,100 $36,950 $46,150 $55,400
3 $25,950 $41,550 $51,950 $62,350
4 $28,850 $46,150 $57,700 $69,250
5 $31,150 $49,850 $62,300 $74,800
6 $33,450 $53,550 $66,950 $80,350
7 $35,750 $57,250 $71,550 $85,850
8 $38,100 $60,950 $76,150 $91,400
Source: San Luis Obis 0 De artment of Plannin and Suildin , March 2003
4.2 Housing Affordability
One of the key issues facing the provision of housing in the State of California, as
outlined in Chapter 1, is the affordability of housing. The ability to acquire safe and
sound housing is becoming a major social and economic issue. It is affecting decisions
regarding the location of employment opportunities, community members having to
commute longer distances between their employment and their residences, as well as
the overall quality of life. This is a major issue especially in the central coast of this
State, where San Luis Obispo County and the City of Arroyo Grande are located. This
issue not only affects people with special housing needs, but the population in general.
This housing affordability issue is further complicated by the lack of financial and other
resources available to mitigate the current housing situation.
The issue of housing affordability is a relationship between household income and the
price of housing. There are a number of factors and statistics to measure the issue of
housing affordability. These factors and statistics are discussed below.
Factors and statistics
Table 13 provides the income limits set forth by the Federal Government to define the
income groups listed in Table 10. These are the income limits as of March, 2003. The
County of San Luis Obispo outlines the rents and sales prices for housing in
accordance with the income levels, which are summarized in Table 14.
43 November 11, 2003
City of Arroyo Grande 2003 Draft Housing Element
. Studio unit - assume the income limit for a one-person household
. One-bedroom unit - assume the income limit for a two-person household
. Two-bedroom unit - assume the income unit for a three-person household
. Three-bedroom unit - assume average of limits for four and five-person
household
. Four-bedroom unit - Assume the income limit for a six-person household
Based upon median housing prices and rent levels provided in this document, it is safe
to assume that housing prices and rent levels are above the median incomes, and only
above moderate income levels can afford current housing prices and rental levels.
Another measure of the affordability of housing is statistics generated by local realtor
associations. According to an article published in the San Luis Obispo Tribune
newspaper, the median-priced home in San Luis Obispo County in May of 2003 was
$388,360. Based upon a traditional loan, a homebuyer would need to purchase a
median priced home with an annual income of $90,000, assuming a 5.72% mortgage
rate and 20% down. According to the California Association o{~ealtors, the authors of
the data, only 17 percent of county residents could afford the/median priced home. The
median home price is the statistical point where half of the homes sell for more and half
for less. For Arroyo Grande, the median income reported for December 2002 was
higher than the county median as a whole, which would imply that the afford ability rate
in Arroyo Grande might be less than that of the county. This overall affordability rate
compares to 28 percent of Californians that can afford the State median priced home
($352,780). The Tribune article noted that the San Luis Obispo county median income
was $57,914 in 2002, which is compared to the statewide median for 2002, which was
$62,849. This documents that one of the issues of housing affordability in San Luis
Obispo County (and assuming Arroyo Grande), is that median incomes are lower and
median home prices are higher than the State average.
Overpavment
Another measure of housing affordability is the percentage of income paid for housing.
State housing guidelines utilize a 30 percent of gross income paid for housing as the
standard affordable level, with those households paying 30 percent or more as
overpayment. According to the 2000 Census, 1,102 households or 28.3 percent of the
owner-occupied units were paying monthly housing costs at 30 percent or above. For
renter-occupied housing units, 902 households or 45.8 percent paid 30 percent or more
for rent compared to household income.
Lona- Term Affordabilitv
One of the issues of the housing programs proposed by this Housing Element Update is
a policy that all affordable housing provided by City incentives be maintained as
affordable for at least a period of 30 years. This issue of long-term affordability is a
subject of a number of existing programs that ensure that affordable units maintain their
status. The issue of long-tern affordability is different for rental and owner-occupied
units.
45 November 11, 2003
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City of Arroyo Grande 2003 Draft Housing Element
Rental housing affordability is generally maintained through recorded agreements
between a property owner and an entity authorized by a City to monitor maintenance of
affordability requirements. These agreements typically specify the following: a) the
maximum rents based on the same formula that established initial rents as a condition
of City approval; b) the term for which rental units must remain affordable; and c) terms
which affordability is maintained after sale or transfer of property. Under the policies of
this Element, all projects that receive a City incentive, the units must be affordable for a
period of at least 30 years. Many of these projects have State or federal funding, which
provide very specific requirements for maintaining affordability.
Based upon the Housing Affordable Standards set forth by the City of San Luis Obispo,
there are two different approaches to maintaining long-term affordability for owner-
occupied units: 1) the property owner agrees to maintain the designated dwelling unit as
affordable for at least 30 years; or 2) the property owner agrees to participate in a
"shared equity purchase program. Under the long-term affordability program, the
housing must remain affordable for at least 30 years from the original date of sale,
which is a policy of this Element. Affordability terms are secured by a promissory note
and deed of trust, recorded on the property prior to or concurrent with the initial
occupancy (for rental units) or sale of property. The promissory note is based on the
monetary difference between the initial purchase and the initial appraised vale as an
"affordability loan" or "silent second" payable to the City. The loan accrues interest at a
rate set by the City when the note is executed, amortized over 30 years. Monthly
payments (principal plus interest) on the affordability loan are typically waived as long
as eligible residents continue to own and reside in the property. Upon sale, transfer, gift
or inheritance of the property, the City, its Housing Authority, or a non-profit agency
approved by the City, shall. have the first right of refusal to purchase the property at its
current appraised value. The consideration for the City's first right of refusal shall
consist of 1 percent of the remaining affordable loan balance. The balance of the City's
loan, after deduction the 1 percent first right of refusal cost, shall be credited toward the
purchase price if the City, its Housing Authority or non-profit agency chooses to
exercise its purchase option.
Under the equity-sharing program, the buyer of an affordable dwelling enters into an
agreement with the city guaranteeing affordability for a specified period of time after the
initial date of sale. Upon resale of the property, the agreement ensures that the City's
share returns to the City for use in other affordable housing developments. The City's
equity share is based on the difference between the property's market value and the
actual price paid by the homeowner, divided by the market value, or the amount of
subsidy provided by the city, divided by the property's'market share. Affordable units
sold before the specified period are subject to an additional "Equity Recapture Fee"
ranging from 25 to 100 percent of the property's equity.
It is apparent, based on this data regarding the supply of housing units, including the
lack of supply of rental units, and with the projected needs, that the households that
appear to be in the greatest need of housing assistance are of low and very-low income.
46 November 11, 2003
City of Arroyo Grande 2003 Draft Housing Element
4.3 Special Housing Needs Groups
This section reviews the characteristics of households with special housing needs,
including elderly or senior households. female heads of households with minor children,
large family households, overcrowded units, farmworker households, and disabled
personslhouseholds. Homeless people who cannot afford any housing are also
discussed in this section.
Elderlv/Senior Households
.
An analysis of the needs of elderly or senior households or persons is important for four
reasons: 1) many elderly have fixed. limited incomes; 2) many elderly persons are
"over-housed" (living alone or with 2 people in a three or four bedroom house); 3) some
elderly have mobility and health problems that can create special housing needs; and 4)
recent projections indicate an increase in the elderly population in the planning period,
either those currently living in the area or those that will be relocating to the area.
There are, according to the 2000 Census, 3,222 residents age 65 years and older in
Arroyo Grande, which is 20.3 percent of the total population. This number is compared
to San Luis Obispo County, where 14.5 percent of the residents are 65 and over.
Owner occupied households with householders 65 years and over totaled 1,732, which
is 82.4 percent of the total elderly households.
According to the 2000 Census, there are a total of 4.528 owner occupied housing units
and 1,950 renter-occupied housing units. In respect to elderly households, the following
represents householders by tenure and age in the City of Arroyo Grande:
. Of the total owner-occupied family housing units, 1,012 are occupied by a
householder 65 years and over.
. Of the total non-family owner-occupied units, 686 households are occupied by a
householder 65 years and over.
. Of the total non-family owner-occupied units. 125 are occupied by a male
householder 65 years and over and 516 are occupied by a female householder
65 years and over.
. Of the total renter-occupied family households, 85 are occupied by a
householder 65 years and over.
. Of the total non-family renter-occupied housing units, 300 are occupied by a
householder 65 years and over.
. Of the total non-family renter-occupied housing units, 64 are occupied by a male
householder 65 years and over and 228 are occupied by a female householder
65 years and over.
Income levels for a householder 65 years and over below the poverty level are reported
by the 2000 Census as follows:
. Of the total 1 05 owner-occupied housing units, 48 are occupied by a householder
65 years and over.
. Of the total 338 renter-occupied housing units, 66 are occupied by a householder
65 years and over.
47 November 11, 2003
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City of Arroyo Grande 2003 Draft Housing Element
Several studies predict the age of future residents in the Central Coast area. A recent
study (April, 2003) commissioned by the Tribune newspaper and conducted by the
Solimar Research Group evaluated the future increase in population predicted in San
Luis Obispo County. The study assumed that the county would gain 100,000 persons
within the next 15 years. Of the age categories evaluated, the age groups of 40-59 and
60-plus showed the largest increases. For the 40-59 age group, the study estimates
this group to increase 68 percent and with a median income above the current county
median income. The study further predicted that retirees in the 60-plus age group
would increase 49 percent, with a median income 9 percent below the county median
income. The study indicated that this increase is not only a result of current residents
aging, but that of many Californians relocating from the San Francisco Bay area, the
Los Angeles area and the Central valley.
Female Heads of Families with Minor Children
.
The 2000 Census reported that of the total 6,478 households, there were 612 female-
headed households in Arroyo Grande. This represents 9.4 percent of the total
households. Of these households, 365 of the 612 or 60 percent had children less than
18 years of age. Based upon the Census data for incomes in 1999 for families below
the poverty level, 61 families with a female householder, no husband present and with
related children under 18 years were reported, with 18.3 percent under poverty level.
Laroe FamiliesIHouseholds
Large families can present special housing needs if they cannot find affordable, large
housing units, then living conditions may become overcrowded. Table 2 shows the total
occupied housing units by the number of persons living within each unit. This
information is shown for owner-occupied and rental housing.
For owner-occupied units, the highest percentage is for a 2-person unit (41.4%). Less
than 8 percent of the owner-occupied households are occupied by five or more persons.
For renter-occupied units, the highest percentage is a one-person household (37.6%).
Less than 9 percent of the renter-occupied units are occupied by five or more persons.
These numbers are generally low compared to the State as a whole, as well as many
cities and counties. The existence of large families does not necessarily indicate an
overcrowding problem if there are a sufficient number of larger housing units for these
types of families.
Farmworker Households
According to the 2000 Census, there are 156 residents of Arroyo Grande that are
employed in farming, forestry or fishing operations. Given the location and environment
of Arroyo Grande, it is assumed that a majority of those employed in these professions
are in the agricultural community.
Several studies that have been. completed over the past 10 years found that most of
farmworkers live in seriously substandard conditions. A majority of current farmworkers
have families and thus are residents versus migrant workers who reside or work for a
period of time in the County but live elsewhere. The actual percent of resident versus
migrant in this area is unknown. The major issue for resident farmworkers is that they
are generally low income and thus have to compete for housing with other lower income
48 November 11, 2003
-'------~-~-,------ ----
City of Arroyo Grande 2003 Draft Housing Element
residents. The greatest need is affordable housing. The issue for many migrant workers
is that farm employers are not required to provide housing, so the migrants may have to
find their own housing, which sometimes is living in their car or in illegal units. The
greatest need for migrant workers is temporary seasonal housing. This could be in the
form of bunk houses on the property where the workers are employed.
In summary, farmworkers generally earn low incomes, live in overcrowded units, and
pay a disproportionate share of income for housing.
Disabled PersonsIHouseholds
,
The 2000 Census recorded the disability status of the civilian non-institutional
population of residents of Arroyo Grande. From a general point of review, for the
population of 5 to 20 years, 260 or 7.4 percent of the population had a disability. For
the population of 21 to 64 years, 1,393 or 16,3 percent of this population had a
disability, of which 55.8 percent were employed. For the population of 65 years and
older, 1,223 persons or 40.5 percent of this population had a disability. The most
significant issue of persons with disability is that of the senior population.
For those persons with a disability, there are two major problems facing this portion of
the community: the need for housing that meets particular physical needs (wheelchair
accessible, etc.) and monetary needs. Because of limited job opportunities for the
handicapped and disabled (at least those whose disability may limit their employment
opportunities), their incomes are often below the median incomes.
The disabled or handicapped residents of Arroyo Grande have varying housing needs
depending on the nature and severity of the disability. Physically disabled persons
generally require modifications to the housing units such as wheelchair ramps,
elevators, wide doolWays, accessible cabinetry, modified fixtures and appliances. If the
disability prevents the person from operating a vehicle, then proximity to services and
access to public transportation are important.
If the physical disability prevents the person from working or limits their income, then the
cost of housing and needed modification can be significant. Because physical
handicaps vary, this group rarely congregates toward a single service organization.
This makes estimating the number of persons and specific needs difficult. The physical
modification of housing is not necessary to accommodate mentally disabled persons,
but they will generally require special services and monetary support. Since jobs and
income are often limited, affordable housing is important. Issues related to those with a
mental disability would suggest that there is a need for apartment or other housing
complexes that are reserved or designed to accommodate persons requiring extra
assistance. Many mentally handicapped persons are unable to drive, so access to
public transportation is very important.
Homeless
.
There is no specific information about the number of homeless persons in Arroyo
Grande. A recent report indicated that there were between 2,500 and 4,000 people in
San Luis Obispo County that were looking for a place to sleep. Past studies have
indicated that the majority of homeless persons are found within the City of San Luis
49 November 11, 2003
-^----------.
City of Arroyo Grande 2003 Draft Housing Element
Obispo, probably as a result of the fact that most services for the homeless are
centered in the City. A past study indicated that the majority of homeless are in North
County (31 percent) and the City of San Luis Obispo (50 percent). Only 15 percent of
the homeless are estimated to come from South County, which includes the Cities of
Arroyo Grande, Pismo Beach, Grover Beach, and the unincorporated areas of Nipomo
and Oceano. Observations from service providers and law enforcement indicate that a
large share of the homeless in South County reside in the beach towns. It is very
unlikely that the City of Arroyo Grande does not have homeless persons "residing" in
the City.
Since 1989, the Economic Opportunity Commission's (EOC) Homeless Services
program has been working to meet the needs of the homeless in the County, offering
emergency housing, on-site information, referral services and assistance in finding
permanent housing. This organization operates an emergency shelter in San Luis
Obispo, which provides 49 beds nightly year-round. An additional 15 to 25 beds are
added through the Interfaith Coalition for the Homeless, bringing the overflow total to
25,000 shelter nights provided per year.
There are several organizations in the County that provide services and housing for the
homeless, including several churches.
Worldorce Housing
Housing has become out of reach for most workers in San Luis Obispo County and the
City of Arroyo Grande. This has made it very difficult for the employers of many
industries to recruit and retain employees. It has also caused the situation that many
employees must commute from varying locations, causing traffic congestion and related
air quality impacts. At this point, housing is hard to find for many of the local workers in
or in close proximity to the place of employment, and given the continuing escalation of
the local real estate market there will be fewer and fewer workers able to live in the local
community. The issue of inadequate workforce housing is threatening the economic
vitality of many communities nationwide. This is especially true in the central coast
area, which includes the City of Arroyo Grande.
The City of Arroyo Grande, through its review of the Housing Element Update, has
identified work force housing as a priority. The question that is raised is, "What is
workforce housing and how does it relate to housing availability and affordability in
general?" A recent national workforce housing forum, hosted by the Urban Land
Institute, generally applied the term "workforce housing" to households earning more
than 60 percent, but less than 120 percent, of the area's median income (essentially
moderate income affordable housing). In the San Francisco Bay area, workforce
housing has been defined as housing affordable to private and public sector workers
with incomes at or below those of teachers and public safety workers.
Many communities are currently addressing the issue of workforce housing. A
preliminary step is to determine each community's definition of workforce housing based
upon the average incomes of the critical workers that employers are having a difficult
time recruiting and retaining. Once identified, programs need to be established within
the public and private sectors to encourage and retain housing for the local workforce.
50 November 11, 2003
City of Arroyo Grande 2003 Draft Housing Element
4.4 At Risk Housing Units
Throughout California many affordable housing units, including those available to low
and very-low income families that were created through government subsidies, may be
eligible to convert to market rate units. Such conversions may jeopardize a significant
amount of the existing affordable housing stock. Housing elements are required to:
1) identify those low income units that may convert to market rate units within 10 years;
2) analyze the costs of preservation of these "at-risk" units versus replacing them;
3) identify resources for preservation; 4) set objectives for preserving at risk-risk units;
and 5) incorporate programs to try to preserve the units as affordable housing.
No at-risk units were identified in the City of Arroyo Grande. To the extent that
subsidized housing units are established in the City in the future, policies and programs
shall be identified to ensure that these affordable units may remain available for lower
income families.
51 November 11, 2003
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City of Arroyo Grande 2003 Draft Housing Element
CHAPTER 5 - LAND AND SERVICES FOR RESIDENTIAL DEVELOPMENT
This chapter provides and evaluates the availability of land and public services in Arroyo
Grande to support future residential development.
5.1 Land Availability
State housing law requires that the housing element provide an inventory of land
suitable and available for residential development, including vacant sites and sites
having potential for intensification and/or redevelopment. The purpose of this
requirement is to identify sites that could accommodate residential development as set
forth by the Regional Housing Needs, as set forth by the San Luis Obispo County
Council of Governments and as approved by the State Department of Housing and
Community Development. This analysis is not a construction quota or an anticipated list
of projects that will be constructed, given that the law recognizes that there may be
limitations that would affect residential development, as well as the fact that private
development and market forces in place that affect the level of housing construction.
Following is a partial and preliminary table (Table 15) that provides a listing of those
sites available for housing construction in the Housing Element Planning period followed
by a housing opportunity inventory map (Map 3). Other properties will be identified and
programmed into the City's Geographic Information System (GIS) to maintain an
inventory from General Plan and zoning data for future Housing Elements and other
planning purposes.
It should be noted that the City's Land Use Element was updated in November 2001 to
include a new "Mixed Use" land use category that encompasses approximately 85%
(254 acres) of all the commercially zoned land within the City. Consequently, most all of
the land (the exception is the Regional Commercial zoning district) within the City is
zoned for some level, or density, of residential development. This is a significant
change from what was allowed and analyzed in the City's 1993 Housing Element. 1!.
should be further noted that Table 15 includes a fairlv realistic estimate of available in-fill
develoDable area in the hiaher density residential land use areas.
52 November 11, 2003
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City of Arroyo Grande 2003 Housing Element
MAP 3 - HOUSING OPPORTUNITY SITES INVENTORY
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Page 65 November 11, 2003
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City of Arroyo Grande 2003 Housing Element
The City is in the orocess of a comorehensive review and uodate of its Develooment
Code for consistency with the 2001 General Plan. focusina on rezonina existina
commercial orooerties to Mixed Use and develooing neW Mixed Use standards. To
date, the City has rezoned orooerties within the Vil/aae Area to Vil/aae Core Downtown,
Vil/aae Mixed Use. Vil/aae Residential and Sinale-familv Residential. ,New develooment
standards for the Vil/aae Core Downtown NCD) and Villaae Mixed Use NMU) districts
have been established (see Tables 16 and 17 below). and the City will conduct a similar
Develooment Code uodate for other commercial areas alana East Grand Avenue, EI
Camino Real and Traffic Way durina the next year.
TABLE 16
DEVELOPMENT STANDARDS FOR THE VILLAGE CORE DOWNTOWN DISTRICT
NCD)
\l;"a_jjj~o.jll.wlJtC)WIJ.~1I1
The pri11KPY'W41Jls~j..(1('Jfltlj..jjll'~l.jl'i'lifjjijjj~tj.il\!I.jjjlr..i..j~~m't~en..fIi.~~mntlr~ial,
oll1ce. ..upper-sto~resitlential....u.ves".a11il~()1J'I~tlbleIl111te(Jclevel~,.e'lJtto;;..Qromote
::;;''''':;'':.''::":'-''''''---''''..
petlestrianusea11ilel'ljtlyn:,entot':i1lze(J()w"!i?i1nJlil1iije..i:t7feti...1I.eitt1ilt!ioifsforflzeJ'(fJlJ)
districtc()mbilredwithtltelli$t()~tc:J('$h(j.te1':~e~l.;::(ji$iict.:;p~()mote:WUlf3tesel'Ye
T_......:....:...........:.............................
older;. architect'U1'al..:s~les..;c()1nP(JtiDlewith.:..tie>histariCil1......fmall..to'W."....lIatflre....of'..4rrQ}lO
,'c......."''''.,,: ..;.;.:"",""::,,:'::::::':,,.:' .'.::.:_ ,..",.":;_..,,',...,:.:':-:,,~,,:,,,,:..,:,.::,.,,'::::.:::;,:;::::::':":::':......
Grant/e..: ;'fWic(Jl;..tlSes.:m~...incluR;.~ut:;are.nt1t.~imilel.t(1!~e~ont:l'"st9~.:r~'fi~ntiqJ...and
~.:-.,,-. . ... ..- .-.-.. - .-, .- . .-:-":-:..:.:.::::...:::::::.:.::::::::::::::::::::::::.~:::::.::,,..:::::::::;:",,,,,,,,,,,,,,,,,,,.,,,,,.,,,,,,,,,,,,,,,.,,,,,,,,,,,,,,,,,,,,,,,,,,,,,-,,,-,,,,,,,,
o(fice.....sDecialtv..retail;.fJ1I.d.j~tUtJiOs...s"u~hj.jQs...a~t.Jallel"les.....~kJt~1'~.s"....fJ1I.tlt~..stQl'es.....f1oW.er
shops... ...personal.......sel'llices..........s,nall..:,nal'Kets........fJ1I.~..J:e.ft',,'U1'tRJts:fw.l/~t.......d1rWe-!'f1rollgh
wint/OWS).'l'HeJl'(fJJJ.f1istfJe.titIJl'l'1f'e~tsp,.is~'tlisti~r~ithth~'fillqJZf(fJQ,.eltJ11f!use
designation.;ottie....GeneriD..PJan.
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Page 66 November 11, 2003
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City of Arroyo Grande 2003 Housing Element
8. Buildina Size Umits Maximum heiaht is 30 feet or th~ stories.
whichever is less: a maximum of 36 feet is
allowable throuah the MUP Drocess.
Maximum Buildina Size is 20.000 sauare
feet.
9. Site Coveraae Maximum coveraOf of site that may be
covered bv structures and Davement is
~
Maximum FIlJ9r Area Ratio is 2.
!
!
f
Floor Area Ratio of 2 I
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10. Site Desian !
!
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11. Off-$treet P~rkina and Loadina ,
t
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1 ~. Sians I
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Page 67 November 11, 2003
City of Arroyo Grande 2003 Housing Element
TABLE 17
VILLAGE MIXED USE NMUJ
V;llajfl.."';xedlJ.e"'lJ~
Village....J{ixed. ..f!se......(V~.....JJ>istr.ict......m1'lte....l't'i1J2(.lI'J!....z,upse Qf!..the...J7'M1.l...!list1'ict....is to
pt'ovide......(pr. .a... ..mixture:.....of....c()1lIlflet'cial.........of/i.ce.......an~.:..r~si~etJtitll....uses....,compatiole.,., with
surroumJinBreside"tialdistiicts...i1'lsmall..sc(lI~.P!dest1'ia1'!~l"ie1Jteadevelopments.
Regulati()ns(ot'tljJ7'M1.l?if!tl!if!lf9mlJinl~.wi(n'.1ftftt},.i~.~~iai:(er~rlfy'st1'icJ
Dromote . and: .,.preser'Ve.........olde,.... .arichitec~~l$tjyle$.......'...CltItt........en~()llrale.'.....'a...'..'1.Kmnonious
interminglingof'other....st'r1lct1Jt~s..........7'hislili.S't1"ict:.~~c~urlllesu.se...io,;~istinl,.esillential
building,.rf(),.no(l..tJesil!e~tialtil;es......:7J.Vpic(Jlu.res.......i1jCjudesitJllf<t.l",tJltif1JefamiiJ'
residential..,.. .. .speciO!r"J"~tQJl..:':sO!es'.l?l'(Jres~i~~...ot1lces.i~"s~1UlI.:,...services:........arui
nei"hbo,.nood11Jf"lcets.~e~'1J(ib{,..:~'6..~~.~a.()-.A.-1'rfJ1'.(Jll~a'~1e,tl~t!s:tj'il'Jl""le$6.!Jii.i(J~()-
...."-.-.,..-...-....-.-......-.....-..................,.........................
B..for,.minimu",.'site...develol'ttJent..standiirifs.
I
6. Side Yard Setback o feet unless a oroiec;t is mixed use and/or
abuts a residential district. then 5 feet is
reauired for sinale staN stnpures and 11 0
feet is reauired. on one side. for a multiole
t . .
0-15 t.
M,~imuf!l heiaht iJ 30 feet or three ston,s.
whichever i, less: a maxillfJlm of ~6 feet is
allowable throuah the MUP Of0C8SS.
Maximum Buildina Size is 10.000 sauare
!!it..
Page 68 November 11, 2003 I
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City of Arroyo Grande 2003 Housing Element
Maximum coverafJ!' of site that may be
covered bv structures and oavement is
~
Maximum Floor Area Ratio is 1.
Floor Area Ratio of 1
9. Site De~ion
10. Off-Street Parleino and Loadino
11. Sians
5.2 Public Services and Utilities to Serve Residential Development
Water
The City receives water from both groundwater and surface water. Groundwater is
extracted primarily from the Arroyo Grande Plain of Tri-Cities Mesa sub-basin of the
Santa Maria Groundwater basin, with an estimate total of 1,200 acre feet of supply. The
City also receives about 100 acre feet of groundwater supply from the Pismo formation.
The significant supply is the 2,290 acre-feet entitlement from Lopez Lake. This brings
the total available water supply to 3,590 acre-feet.
Based upon per capita consumption of 190 gallons per day, the maximum average
considered at that time, the 1990 population of 14,057 was consuming 2,990 acre feet
of water per year. If the same rate of consumption were continue to the projected
20,000 City population at General Plan build-out, it was estimate that approximately
4,149 acre feet per year of water resources would be required, 556 acre feet more than
currently available. Without additional water supplies or a reduction in current usage, it
is questionable that an adequate water supply is available to accommodate the
assigned regional housing allocation.
The 2001 General Plan Update proposes that average per capita consumption be
reduced by conservation measures to a maximum of 160 gallons per person per day.
This Water Conservation Plan was adopted in May 2003. If this plan is successful, it
may provide additional water supply to support additional residential development
beyond that previously forecasted.
Sewer
The South San Luis Obispo Sanitation District provides wastewater treatment and
disposal. The treatment plant is located in the unincorporated community of Oceano
and treats wastewater from various sources in the vicinity, including the Oceano area
and the Cities of Arroyo Grande and Grover Beach. The District has completed
expansion of treatment facilities in the early 1990's, and the plant can now process 5
Page 69 November 11, 2003
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City of Arroyo Grande 2003 Housing Element
million gallons of effluent per day with existing effluent quality guidelines. It has been
estimated this will provide ample service to at least 2010.
Public Services
The City of Arroyo Grande police department is responsible for law enforcement,
investigations and crime prevention programs with the City limits. The fire department,
composed largely of volunteers, is responsible for providing fire protection and medical
response. The City has historically has low levels of major crime or fire loss despite
below average police and fire department staffing. There are no uniform standards
regarding appropriate or adequate numbers of officers per number of residents. One
issue however regarding the fire department is that with the one downtown station,
average response time with the City limits is 11.2 minutes, which for some of the areas
of the City is well above a recognized standard of 5 minutes. This may affect the
development of lands in the City that may be beyond the desired response time.
It is generally expected that police and fire resources improve with additional
development that generates increased tax revenues. However, with the recent shifts of
local tax revenues to the State, and decreasing State revenues being provided to local
governments, additional development may cause a decrease in public safety for the
community.
Schools
School facilities for Arroyo Grande are provide by the Lucia Mar Unified School District,
which provides educational services in the South County Area, which includes Grover
beach, Pismo Beach, Oceano, Nipomo and the remaining unincorporated county. The
District operates and maintains 10 elementary schools, 3 middle schools, and 2 high
schools, with the addition of Nipomo High School that opened in the fall of 2002.
Recent studies have indicated that most of the schools, with the exception of Nipomo
High, were built in the 1950's and 1960's and thus may be subject to needed
renovation. Information provided in the Arroyo Grande General Plan EIR adopted in
1991 indicated that many of the schools were operating at an over capacity level. With
the opening of Nipomo High, the high school level capacity seems to be resolved.
Residential development is of a concern to schools because of increased enrollment.
However recent newspaper reports have indicated that enrollment seems to be
decreasing. Recent studies report in the San Luis Obispo Tribune newspaper indicate
that the population in the area will be shifting from families to a more senior population,
mainly because of the cost of housing. Recent State budget cuts are also affecting the
operation ability of the school district to provide education services.
5.3 Constraints to Housing Development
There are a number of constraints that affect the construction of housing in a
community. State law recognizes this and requires an analysis of these constraints.
Following is an analysis of gbvernmental constraints, environmental or public service
constraints, as well as nongovernmental constraints.
Page 70 November 11, 2003
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City of Arroyo Grande 2003 Housing Element
Government Constraints
The intent of this sub-section is to identify governmental constraints that affect housing
development, as well as to analyze those that may be modified so as to not create a
barrier to the maintenance, improvement or development of housing to all income
levels.
The price of a home is based upon five basic costs: land, materials, labor, financing
rates and insurance, government requirements and fees, as well as environmental
constraints. The cost of the first three items are determined by the market economy,
while the fourth items, lending rate, is largely set by the federal government, while
insurance is controlled by insurance carriers. These items are discussed under
nongovernmental requirements and fees. This sub-section focuses on the forth items,
governmental constraints. In addition, there are a number of environmental constraints
that affect housing construction.
The California Legislature has delegated to local governments specific responsibilities
and a certain amount of discretionary control over the development and use of land.
Through land use controls, building codes and development review procedures, these
and other requirements and fees, cities may influence the location, density, type, size,
quality and appearance of housing units within their jurisdiction. These requirements
and fees, while not completely under full control of the city, affect the cost and
availability of housing.
Governmental requirements may generally be divided into land use and development
controls, such as general plan requirements, zoning, subdivision, environmental review,
and annexation requirements. Other governmental regulations include building codes,
development processing and development impact fees, as well as permit processing
requirements. Many of these controls are regulatory, required by local government in
response to State and federal mandates to protect public health and safety, and others
are adopted to implement State mandates or to achieve the welfare and desired quality I
of life, values and objectives of the local community. It should be noted that the City
has ad~oted the State Uniform Buildina Code {minimum. requireme'?tsJ, and has not
amended this Code to include stricter reaulations that would add costs to housina I
develooment. ,
I
Constraints on Housina for Disabled Persons
Governmental constraints related to arouo housing for oersons with disabilities are !
. . ~ - - ,
handlf!d throuafJ the Discretional"( review Of0C8SS. Qond(tions of aqoroval would be I
imoosed. throuah the yonditiQnall.!se Permit orocess to f89uire comoliance with current I
disabled access standards for that use.
.
i
,
Land Use and Develooment Controls I
!
Land use and development controls determine the amount, type, and location of I
housing. The primary policy tool for promoting a balanced use of land and resources is
through the City's General Plan. The General Plan establishes an overall framework for t
development and conservation of land in the City, primarily through the Land Use I
!
Element. State law divides the required content of a general plan into distant elements, i
and requires that the General Plan be designed as a balanced, integrated document ,
i
,
Page 71 November 11, 2003
City of Arroyo Grande 2003 Housing Element
that is internally consistent. Residential land use is one consideration of the plan, and
Housing is one of seven Elements and has a number of issues the City must address.
The City in its required General Plan elements must address traffic and circulation,
safety and noise, conservation and open space, as well as other statutory matters. The
Housing Element has a direct relationship to most other General Plan elements.
The primary means to implement the General Plan is the Zoning Ordinance or
Development Code, which establishes development standards, intensity of
development, and minimum site standards. Various residential zones are established
along with a minimum set of requirements for densities, which are intended to
implement the densities set by the General Plan. Other requirements are setbacks, lot
coverage, parking, open space and other related property development standards.
Table 4i 18, inserted here from the 2001 General Plan land Use Element, provides the
densities for the various land use zones as set by the recently adopted General Plan.
The City is in the process of Development Code Amendments intended to implement
the General Plan and make revisions for consistency. It is the intent of the City to
include within the Development Code changes to the development standards included
as policies of the adopted Housing Element. Some of these standards by their nature
may increase the cost of housing, however, those proposed standards included as
policies in this element, are not considered excessive and are deemed to be the
minimum required to protect the general welfare and regulate the quality of
development in the City.
State law requires that any subdivision of land must conform to the standards and
procedures set forth by the State Subdivision Map Act. The City's Development Code
implements these State requirements and procedures in a manner considered
necessary and reasonable means despite affecting residential development
improvement costs.
Development applications for housing as well as other development applications are
subject, in most cases, to the California Environmental Quality Act (CEQA). CEQA
requires that development applications be subject to an environmental review of the
impacts that would result from implementation of a project.
The City, as part of its 2001 General Plan, prepared a program environmental impact
report (EIR) to address the impacts of development proposed by the Plan. The
anticipated residential development evaluated in the Plan is similar to that required by
the Regional Housing Needs established for the City. The Program EIR concluded that
there were several significant environmental impacts that could not be mitigated to less
than significant levels. Required findings and statements of overriding considerations
also involve mitigation measures that will influence future residential and also require
possible project EIR's that will increase the cost of the development. These costs are
unavoidable given the State mandated requirements of CEQA.
Several areas designated for future residential development in the City's 2001 General
Plan are located within the City's Sphere of Influence or proposed Urban Reserve not
currently in the City. Changes to the Sphere and annexation to the City are under the
jurisdiction of the county Local Agency Formation Commission (LAFCO), as well as the
Page 72 November 11, 2003
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City of Arroyo Grande 2003 Housing Element
City. Recent changes to State annexation laws now require service plans that
demonstrate the ability of the city to serve the annexation area as well as a financial
analysis of the service ability. These requirements may have a significant affect on
whether lands may be annexed to the City as well as time required to effect the
annexation. Additionally, the General Plan requires that these potential annexations be
subject to Specific Plan and pre-zoning approval prior to annexation. These processes
and related EIRs will take several years to complete, thus precluding these areas from
this Housing Element.
Buildina Code Reauirements
The Arroyo Grande building requirements are based upon the California Building Code,
which is a version of the Uniform Building Code adopted by the State. This Code is
mandated by the State, and a jurisdiction may not set standards that are less stringent
than the State Code. The Code ensures safe housing and is not considered a
significant constraint to housing production.
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City of Arroyo Grande 2003 Housing Element
TABLE 4i 18
URBAN LAND USE ELEMENT
RESIDENTIAL DENSITY. ZONING AND POPULA TION DENSITY
Residential land uses, ranging from large-lot single-family homes to multiple-family apartment buildings are the
predominant uses within the City of Arroyo Grande. Most of the land within the City designated for residential
use has been developed. The demand for additional residential development is evidenced by requests for
conversion of non-residential classifications to residential designations as well as requests to increase the
density allowed within residential and non-residential classifications.
Residential density I zoning categories and POPulation density shown on the Urban Land Use Element. Map 2
are summarized on Table; LU-1.
Residential Densitv. Table LU-1
Classification DU Densitv Cons,tent Zonina/Min Lot Size Persons/Household ADoroximate
PODIJlatlon Densitv
Persons/aaa
Agriculture (Ag) 1 du/10ac. Gen or Exclusive Agriculturel ' 2.4p/du 0.24 p/ac
20 ac. (currently 10 ac. In City)
1 duJ20ac. 0.12 pJac
Conservation! 1 dul10ac. OS & PF 2.4 " 0.24 p/ac
Open Space(C/OS)
1 dul5ac. 5ac, 10ac, & 20 ac. 0.5 p/ac
County Residential 1 dul5ac County RR/5 - 10ac 2.4 " 0.5 p/ac
Rural (RR)
County Residential 1 du/2% ac.* County RS (Proposed) 2.4 " 1.0 p/ac
Suburban (RS) (County LUO currently allows 1 -3 ac. lots)
Single Family Residential (SFR)
Very Low Density (VLD) 1 du/2 % ac. RE/2% ac. 2.4 " 1.0 pIac
Low Density (LD) 1 dul1 % ac. RH/1 % ac. (cluster) 2.4 " 1.6 p/ac
1 dul1 ac. City RR/1 ac. 2.4 " 2.4 p/ac
Low Medium Density(LM) 2.5 dul1 ac. City RS 2.4" 6.0 p/ac
Medium Density (MD) 4.5 dulac City SF 2.4" 10.8 p/ac
Multi-Family Residential (MFR)
Medium High Density (MHD)
Townhouse/Condo 9.0 dulac City MF 2.0 p/du 18.0 p/ac
Mobile Home Park (MHP) 12.0 dulac MHP-MHD 1.5 p/du 18.0 pJac
High Density (HD) 14 dulac City MFA 2.0 p/du 28.0 p/ac
Apartments
**"Very High Density (VHD) 25 du/ac ***Senior Residential 2.0 p/du 50.0 p/ac
Mixed Use (MU)
Village Core (VC) 25 dulac See 2.0 p/du 50.0 p/ac
Office (0) Devt.
PD, SP and CF Code I
I
***General Plan Land Use Element Policy IrU3-4: "Accommodate the dfJIye/ooment ofaoart,ment buildinas and
aro~o housina in areas classified as My/tiole FamHY Residflntia/- Ve", Hiah Densitv (MFR-VHD)"
LU3-4.1 Allow a maximum densitY of 25 du/acre within the MFR- VHD desianation.
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City of Arroyo Grande 2003 Housing Element
LU3-4.2 Enable dev310Dment ofverv hiah densitv multi-familv re~idential uses in locations with qood
access to maior transoortation routes and in close oroximitv to Communitv Facilities. Offices. Reaional
Commercial and/or Mixed Use zones.
LU304.3Allow for aoartment buildina$ that do not adve~elv affect surroundina residential uses.
LU3-4.4 Encouraae senior and other soscial needs housina facilities within the MFR-VHD desianation.
Deve/ooment Processina and Dave/ooment /moact Fees
Table -1+ 19 summarizes the development processing fees including fees charged by
the Community Development Department for processing housing applications. These
fees are established by the City Council to cover the staff and other costs associated
with processing a housing development application. These fees are comparable to
other area jurisdictions and not considered excessive.
The fees charged at the time of the issuance of a building permit for residential
development include standard building permit plan check and inspection fees as well as
impact fees set by the City. Building fees are set by the Building Code and represent
the costs for plan review and inspection of the project construction. Given the nature of
these fees, they are not considered excessive in that they are essential to ensure the
health and safety of the project construction.
The City also charges impact fees to cover the costs of cumulative infrastructure and
certain service requirements of the projects. Given the current tax structure the City
must operate under, there are not adequate general funds to provide the services and
infrastructure necessary for new residential development, thus development impact fees
must be charged to cover the costs of the services or infrastructure requirements. Many
of these fees are a result of environmental mitigation measures adopted and required
by the project environmental review. Many of these fees are not unusual or high
compared to other cities in the region and they are deemed necessary to cover costs.
Similarly, school impact fees that have been imposed by the local school district to help
cover their costs to provide additional building construction needed to support additional
school population associated with additional residential development. These
development impact fees increase the cost of housing, and proportionally affordable
housing. This Housing Element proposes waiving or deferring all or part of certain
development impact fees as a public incentive and means of assisting affordable
housing.
The total fees charged at building permit issuance for the average single family is
approximately $20,000 per unit, which includes building fees and impact fees. For
condominium projects, the estimated building and impact fees are estimated at between
$13,000 and $14,000 per unit, while the same fees for an apartment are estimated at
$13,000 per unit. These fees are one of the substantial costs of housing, but as noted
above, these fees are either required by the building code, are needed to finance
infrastructure or services, or serve as mitigation for the project impacts.
Page 75 November 11, 2003
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City of Arroyo Grande 2003 Housing Element
TABLE 4+ 19
CITY OF ARROYO GRANDE
COMMUNITY DEVELOPMENT DEPARTMENT
FEE SCHEDULE - JANUARY 1, 2003
APPEALS
. From Community Development Director to Planning Commission $ 195 N/A
. From Planning Commission decision to City Council $ 195 N/A
ARCHITECTURAL REVIEW
. Within P.O. Zone or requires City Council approval
. Architectural Review Only N/A N/A
. Architectural Review with, associated project $ 415 N/A
. Outside P.O. Zone or requires Planning Commission approval
. Architectural Review Only N/A N/A
. Architectural review with associated project $ 220 N/A
$ 67 N/A
. Minor Project (ARC ReferraVCommunity Development Dir. Approval)
ARCHITECTURAL REVIEW AMENDMENT
. Within P.O. Zone or requires City Council approval $ 415 N/A
. Outside P.O. Zone or requires Planning Commission approval $ 220 N/A
. Minor Project (ARC ReferraVCommunity Development Dir. Approval) $ 220 N/A
CERTIFICATE OF COMPLIANCE
. Within P.O. Zone I 650 Recording Fee
. Outside P.O. Zone 450 Recording Fee
CONDITIONAL USE PERMIT (CUP)
. Within P.O. Zone $ 1,205 N/A
. Outside P.O. Zone $ 1,005 N/A
CONDITONAL USE PERMIT AMENDMENT
. Within P.O. Zone $ 865 N/A
. Outside P.O. Zone $ 665 N/A
CONDOMINIUM, CONDOMINIUM OR MOBILEHOME PARK
CONVERSION (see CUP and Tentative Map)
DEVELOPMENT AGREEMENT $2,030 N/A
DEVELOPMENT CODE AMENDMENT (includes rezoning, $1,250 N/A
prezoning, and P.D. rezoning)
15% of EIR or Environmental Doc. Contract
EIRlENVIRONMENT AL STUDIES and cost of document preparation by
consultant or staff (time and materials)
Page 76 November 11, 2003
City of Arroyo Grande 2003 Housing Element
GENERAL PLAN AMENDMENT $1,370 N/A
HOME OCCUPATION PERMIT $ 50 N/A
LARGE FAMILY DARE CARE PERMIT $ 265 N/A
LOT LINE ADJUSTMENT
. Within P.D. Zone $ 800
. Outside P.D. Zone $ 605
LOT MERGER $ 605
$ 130 N/A
$ 260 N/A
PLANNED DEVELOPMENT, SPECIFIC PLAN, OR GENERAL $1,155 N/A
DEVELOPMENT PLAN AMENDMENT
PLANNED UNIT DEVELOPMENT PERMIT
. Processed concurrently with Tentative Map and Architectural Review $1,155 N/A
. Processed alone $1,155 N/A
PLANNING COMMISSION INTERPRETA TION/WAIVERlREFERRAL $ 410 N/A
PLOT PLAN REVIEW $ 230 N/A
PRE-APPLICATION CONFERENCE $ 315 N/A
PREZONING (see Development Code Amendment)
RESEARCH (per hour) $ 70 N/A
REVERSION TO ACREAGE
. Within P.D. Zone $
. Outside P.D. Zone
REZONING (see Development Code Amendment)
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City of Arroyo Grande 2003 Housing Element
SECOND DWELLING UNIT (see CUP)
SIGNS (Includes refe"al to ARC)
. PLANNED SIGN PROGRAM
. Within P.O. Zone $ 615 N/A
. Outside P.O. Zone $ 415 N/A
. ADMINISTRATIVE SIGN PERMIT $ 70 N/A
. ADMINISTRATIVE SIGN PROGRAM $ 165 N/A
. MURAL PERMIT $ 165 N/A
SPECIFIC PLAN $ 3,550 N/A
SPECIFIC PLAN AMENDMENT $1,155 N/A
SURFACE MINING PERMIT (see CUP)
TEMPORARY USE PERMIT $ 105 N/A
TENTATIVE PARCEUTENTATIVE TRACT MAP
. Within P.O. Zone $ 1,000 $ 21110t
. Outside P.O. Zone $ 805 $ 21110t
TENTATIVE PARCELlTENT A TIVE TRACT MAP AMENDMENT
. Within P.O. Zone $ 1,000 $ 21110t
. Outside P.O. Zone $ 805 $ 21110t
TIME EXTENSION (Tentative Parcel or Tract MaplCUP/PUD ext.)
. Within P.O. Zone $ 510 N/A
. Outside P.O. Zone $ 310 N/A
VARIANCE
. Within P.O. Zone $ 1,000
. Outside P.O. Zone $ 805
VESTING TENTATIVE PARCEL OR TRACT MAP
. Within P.O. Zone $1,000 $ 21110t
. Outside P.O. Zone $ 805 $ 21110t
VIEWSHED REVIEW PROCESS
. Staff Review $ 350 N/A
. Planning Commission Review $ 350 N/A
Updated 11/12/02
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City of Arroyo Grande 2003 Housing Element
Land-Use Controls
Land use controls, broadly outlined in the General Plan Land Use Element and
imolemented throuah the City's Develooment Code. soecifv the kinds. location. and
if}tensity of land uses. Soecific develooment standards include oarkina requirements.
lot coveraae. lot sizes. unit sizes. floor area ratios. setbacks and ooen soace
reaulrements. The current standards are outlined below in Table 20'or all residential
.
districts. Standards for Mixed Use develooment are discussed above in Section 5.1
under Land A vailabilitv.
As Dart of the Develooment Code Uodate for residential and mixed use districts. the City
will study how develooment standards can be modified to enable hiaher densities
described in the Land Use and Housina Elements. Soecmcally. the City will focus on
increasina the allowable heiaht and reducina oarkinareauirements fesDecially for all
. ~
affordable ~ousina and senior housinqJ to e,!able hiq/ler densities. This issue is
addressed under Policy A. 10.
TABLE 20
RESIDENTIAL SITE DEVELOPMENT STANDARDS
SINGLE-FAMIL Y ZONES
RE RH RR RS SF VR
1. Maximum density 0.4 0.67 1.0 2.5 4.5 4.5
,
(DU's per llrOSS
acrel
2. Minimum 92,50rf 49.000 40,000 12.000 7,200 6,750
.
bui/dim! siteD
~ .
(}{et area in SQ. '
OJ
3. Minimum lot 200' 130' 120' 80' 70' 50'
.
widthC
4. Minimum lot 250' 200' 200' 100' 100' 100'
deoth
5. Minimum front 50'. 35'. 35'. 25'. 20'. 15'.
]!!lrd
6. Minimum interior 30'. 10% of/ot 10% of lot 5' one 5' one 5'.
.
side vard width · width. side, 10' side. 10'
setback other side. other
side ·
7. Minimum street ~ 15% of/ot 15% of lot 15'. 15'. 10'.
side vard width width ·
setback
8. Minimum rear 50'. 40'. 25'. 20'. 10' (J 1-' (J-
vard setback mmi mmi
15' (2- 15' (2-
storv) · mmi
Page 79 November 11, 2003
City of Arroyo Grande 2003 Housing Element
9. Maximum lot 35% 35% 35% 30% 40% 40%
coveraged
10. Maximum 30' or 2 30' or 2 30' or 2 30' or 2 30' or 2 30' or 2
hei1!ht for stories, stories, stories. stories, stories, stories.
buildings and whichever whichever whichever whichever whichever whichever
structures is less is less. 14' is less. 14' is less, 14' is less. 14' is less. 14'
fJlr. fJlr. fJlr. fJlr. fJlr.
accessory accessory accessory accessorv accessory
buildinf!s buildin{!s buildin{!s buildinf!s buildinf!s
11. Minimum 20' 20' 6' 10' 10' 10'
distance
between
building
Oncludin1!
main
dwellin1!s and I
accessory I
structures )e
RESIDENTIAL SITE DEVELOPMENT STANDARDS
MUL TIPLE FAMIL Y AND OTHER ZONES
MF MFA SR MHP
1. Maximum density 9.0 11.0 25.0' 6.5
(DU's per f!70SS
acre)
2. Minimum buildin1! 10,000 1 0.000 20; 000 5 acre~
site
(Net area in sq.
ftJ
3. Minimum lot 80' 80' 80' 60,g
widthC
4. Minimum lot 100' 100' 100' 100€
deDth
5. Minimum front 20'. 20'. 20' 20'
vard setback
6. Minimum interior 10'. 10'. 10' 5'
side vard setback
7. Minimum street 10'. 10'. 10' 15'
side vard setback
8. Minimum rear Average 15'" Avera1!e 15'" Average 15'" 5'
vard
setback
9. Maximum lot 40% 45% 60%' 50%
coveraged
Page 80 November 11, 2003
City of Arroyo Grande 2003 Housing Element
10. Maximum heiJ!ht 30' or 2 30' or 2 stories, 30' or 2 stories. 30' or 2
for buildings and stories. whichever is whichever is stories,
structures whichever is less, 14' for less, 14'(or whichever is
less. 14' for accessory accessory less. 14' for
accessory buildings buildin~s accessory
buildinvs buildinvs
11. Minimum distance 10' 10' 10' 5'
between buildings
(including main
dwellin~s and
accessory
structures)e
Notes to Table 16.32.050-A and B: Residential Site DeveloDment Standards
a See Table 16.32.050-A for ,minimum lot sizes for parcels with sloDe greater than seven
~ercent.
Area shall be increased to five acres for slope conditions exceeding twenty (20) percent.
c Width measurements for cul-de-sac or otherwise odd-shaped lots shall be determined on
.
the basis of the average horizontal distance between the side lot lines, measured at right angles
to the lot deDth at a Doint midwflV between the front and rear lot lines.
* If a lot is located within a residential zone and was created Drior to June ]3, 1991,
effective date of the Development Code. buildin~s may conform with the setback and lot
coverage standards of the previous zone as outlined in Appendix C. W -D-2.19
d The following floor area ratios shall be adhered to in all zoninJ! districts in addition to
lot coverage requirements:
Lot Size Floor Area Ratio (FAR)
Q - 4000 square teet net 0.35
-
4001 - 7199 square teet net 0.40
-
7200 - 11999 square feet net 0.50
-
12000 - 39999 square feet net 0.45
-
40000 + square feet net
The above FAR's shall not apDlv to condominium or PUD Droiects where the proposed lot
consists of a buildin~ footprint.
e Within a Dlanned unit develoDment, building separations may be reduced to zero teet.
irovided that fire walls are provid~d per UBC standards.
Unless a minimum of twentv-five (25) percent of the units are reserved for low and
moderate income residents. the maximum densitv of independent living develoDments shall be
eleven (J 1) units Der gross acre (J 1 dulac). Congre~ate and residential care facilities shall have
a maximum densitv of twenty-five (25) dwelling units per gross acre (25 dulac).
.
g The minimum parcel size within the mobilehome district mpv be reduced to three
thousand six hundred (3.600) square feet with a minimum average width of/orty (40) feet and a
minimum frontage of not less than thirty (30) feet if common ODen space areas and recreational
facilities are Drovided as part of the subdivision and if the open SDace areas and recreational
. .
facilities are reserved for the exclu~ive use of residents of the subdivision. Standards for the
Drovision of common open space required to permit a reduction in lot size are as follows:
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City of Arroyo Grande 2003 Housing Element
(l) A minimum of five hundred (500) square teet of common open space and
recreational area shall be provided for each residential lot in the subdivision.
(2) The combined square footage of common open space. recreational area, and
residential lot area. not including public and Drivate streets and cannon Darking
,
areas shall average ':lot less than six thousand (6,000> square feet Der lot within
the subdivision.
(3) Open space and recreational areas shall be designated on the subdivision map,
h and shap be located entirelv within the subdivision.
For two-storv buildini(s avera~e rear vard setback shall be twenty (20) feet. Averafe
. '
includes all buildings alon~ rear property line and is subiect to city aDproval.
i The permitted s~ty (60) percent ,lot coveralle includes main and accessory buildings.
Darking areas. drivewavs, and covered patios. The remaininll forty (40) Dercent of the total area
,
shall be devoted to landscaping, lawn ant! outdoor recreation facilities incidental to the
development, such as. but not limited to. outdoor recreation llame areas, puttinf greens, patios,
~ ~
~alkways an.d fences.
RESIDENTIAL PARKING STANDARDS
. .
1. RESIDENTIAL USES
a. Sinvle-familv homes
Conventional size lot 2 SDaces Der unit within an enclosed llaralle
Small lot (PUD) 2 spaces per unit within an enclosed garage
and 0.5 sDace/unit for visitor narkinv
b. Duplexes 2 space per unit within an enclosed llarage and
1 uncovered SDace Der unit
c. Second residential units 1 cov~red space per unit and 1 uncovered space
Der unit
d. Townhouse and condominiums (Attached ownershiD units)
RESIDENT PARKING:
Studio 1 SDace Der unit within an enclosed llaraire
1 bedroom 1 space per unit within an enclosed llaralle and
1 uncovered SDace Der unit
2+ bedrooms 2 spaces per unit within an enclosed garalle
.
and 0.5 uncovered space per unit for each
additional bedroom over 2
VISITOR PARKING: 0.5 uncovered SDace Der unit
e. ADartments and multifamilv
dwellinvs (rental units)
RESIDENT PARKING:
Studio 1 covered SDace Der unit
1 bedroom 1 covered space per unit and 0.5 uncovered
SDace ner unit
2+ bedrooms 2 covered spaces per unit and 0.5 uncovered
space per unit for each additional bedroom
over 2
VISITOR P ARKlNG: 0.5 uncovered SDace Der unit
Page 82 November 11, 2003
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City of Arroyo Grande 2003 Housing Element
If. Senior housinv - indenendent livinf!
RESIDENT PARKING:
Studio 1 covered snace ner unit
1 bedroom 1 covered snace ner unit
2+ bedrooms 1 covered space per unit and 0.5 uncovered
SDace ner unit
VISITOR PARKING: 0.5 covered snace Der unit
&. Senior housing - assisted living 1 uncovered space per 3 beds and 1 space Der
emDlovee on'the larIlest work shift
h. Mobilehome Darles 2.5 uncovered SDaces Der unit
1.. Large familv dav care facilities 1 uncovered space Der staff person other than
the homeowner in addition to the re~uired
Darkinu for the residential buildinv
On and Off-Site ImDrovement Reauirements
Tvpical on and off-si~e improvement requirements fo( residential subdivision.s and/or
mixed-us~ I)roiect~ are !mpos~d as part of the aPflrova/proce~s for ,a subdivision and/or
conditional use permit aoplication. Current imorovement standards include submittal of
th~ follo~ino improvement olan~:' ~radino and dr:ainaoe: erosion control; street
improvements: curb. outter and sidewalk: public utilities: water and sewer: landscaoino
and irrioation.' These imorovement Q/an f99uirements are oen~rali'( b~$ed on helllth.
safety and to a lesser extent. aesthetic issues. Deviations from standards such as
driveway width. street width and undergroundinqof utiiities occur on a case-bv-case
basis throuqh the discretionarv review QrOcess and will be formalized throuoh
. .
implementation of Housino Element (JOli~ies and oroarams to en9Quraqe affordable
housino constructi(;m. As ~nother incenti'(e to Qroduce "!o@ affordable housino. the
Citv intends to uQdate its Fee Schedule to reduce the amount of imoact fees reauired
. . ,-.. ,
for. very low and low income ho,:/silJ9 (see Policv 8.3-1).
The City adooted. a Level of Service and Traffjc Imoact s,tL!fJv Policv in March 2002. A
Level of Service (LOS) 'C' was established as the threshold. or peak hour desian
obiective for all movements. includino cumulative traffic at build-out of the studvarea.
, - . .
Permit Processino Reauirements
.
Permit processing times in Arroyo Grand are comparable to other cities in the county.
Most of the processing times are a result of State mandated reviews and hearings,
including the time required for preparation of the required environmental documents.
Projects requiring an EIR can be processed in a year. Those not requiring an EIR may
be processed in 6 months or less. While application and permit processing times may
seem excessive by some, they are generally prescribed by law. The Housing Element
includes a policy stating the City's intentto expedite the processing of development
proposals that include affordable housing, to the extent allowed by CEQA and State
planning, zoning and subdivision procedures. Estimated timelines for different oermits
are indicated in Table 21 below. It should be noted that timelines can also chaTJf(e
~ - .. .' . ~.~
deo~ndino on. if a orooqsed p~ie~t is in a Plan!1ed Dev,elopment ~re~. A!1v oroiect
within a ~/anned Deve/o ment re uires Ci Council a rova/. The 2001 General Plan
Lan U~e MaD eliminated ref~ren.ce to a/~adv developed Planned Develoorn.ent (f'DJ
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City of Arroyo Grande 2003 Housing Element
areas. but retained vacant areas. The DeveloDment Code UDdate will include this
chanae and will result in shorter Dermit Drocessina timelines for Droiects in develoDed
PD areas.
TABLE 21
PERMIT PROCESSING TIMELINE
"
14 d 'S 21 d 'S
7d 'S 14 d 'S
30 'S 120 d 'S
Environmental Constraints
The City adopted a General Plan Update in 2001. As part of the process of adopting
the update, a program EIR was prepared to address the environmental issues attributed
to the growth proposed. It is important to note that the General Plan Update evaluated
residential growth that is very similar to that included in the Regional Housing Needs
Assessment adopted for the City of Arroyo Grande, except that the General Plan
assumes a longer planning period than the Needs Assessment. The General Plan
Update EIR concluded that there were three major environmental impacts that were
significant and could not be feasibly mitigated to less than significant, thus findings and
statements of over-riding consideration were adopted. These critical issues are
considered constraints on residential development as discussed below.
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City of Arroyo Grande 2003 Housing Element
Water A vai/abi/ify
. .
As outlined in the public services section of the Program EIR, water resources are
limited in the City. According to the City Public Works Department, the City is currently
using more than 91 % of its available average annual water resources. The current
resources are not adequate to serve the increased population proposed by the General
Plan, and thus, not adequate to serve the projected population proposed by the
Regional Housing Needs Assessment. To address the water supply issue, the City has
adopted a water conservation plan. The intent of this plan is to reduce wasteful or
excessive water consumption to provide a margin of safety for existing users and
enable more efficient use of existing resources to accommodate growth anticipated by
the adopted 2001 General Plan. However, due to the fact that the conservation plan
was only recently adopted, its effectiveness is yet to be determined. In addition, the
Local Housing Task Force (LHTF) recommends that other sources of supplemental
water supply should be considered soon due to the lengthy time required for regional
water resource or project development. Other than pending conseNation measures,
these resources were determined to be beyond the time'frame of the Housing Element
planning period. It is therefore concluded that water availability is a critical constraint to
continued residential development.
TrafficlCirou/ation
The General Plan Program EIR evaluated traffic impacts, both from proposed City
development as well as regional impacts of growth. The EIR concluded that many local
streets and Highway 101 will be significantly impacted. The 101 impacts are significant
in that the improvements required to serve many of the undeveloped land in the
southeast and south portions are not yet planned and likely will not be implemented until
after the Housing Element planning period. It is therefore concluded that additional
development will cumulatively impact area roadways and thus is another constraint to
continued regional residential development, including within the City.
Air Qualify
Like traffic/circulation, air quality has been determined in the General Plan Program EIR
to be a significant impact that cannot be mitigated to less than significant, and will
require a Clean Air Plan amendment. This is a cumulative impact attributed to
additional growth, thus is considered a significant constraint to continued residential
regional development, including within the City.
Non-Governmental Constraints
This sub-section provides information related to constraints to producing housing,
specifically affordable housing, that result not from governmental regulation, but from
other forces on the housing market. Primarily, this examines the economic factors that
contribute to the price of housing in Arroyo Grande. Other factors that have an effect on
housing costs that are not addressed are sales and marketing costs, property taxes,
and developer profits.
Land Costs
Land costs vary substantially based upon a number of factors. The main influences on
land value are location and zoning, and to a degree available supply of land. Land that
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City of Arroyo Grande 2003 Housing Element
is conveniently located in a desirable area that is zoned for residential uses will likely be
more valuable, and thus more expensive.
The LHTF developed several proformas that evaluated the costs of residential
development, including land costs. It has been estimated that unimproved residential
zoned land in the City ranges from $300,000 to $500,000 per acre. Improved lots can
be even more costly. The range sometimes varies due to the site zoning, with higher
density zoned land being more expensive per acre (but less per unit). Given the
median cost of housing identified in this chapter and the median costs for affordable
housing, then it is evident that land costs clearly present the most significant constraint
to the production of affordable housing in the City.
Site ImDrovement Costs
Site improvement costs include the cost of providing access to the site, clearing and
grading the site, and constructing required improvements. In the case of a subdivision,
such costs may also include major subdivision improvements such as building roads,
installing sewer, water and other utilities. As with land costs, several variables affect the
amount of such costs including site topography and proximity to established roads and
utilities. Engineering and other design and technical assistance costs are usually
included with site improvement as these services and City fees are required to ensure
the development is constructed to established codes and standards.
The City requires that curbs, gutters and sidewalks be placed along the frontage of
every lot on which new construction is done. Many of these improvements, especially
sidewalks, generally are required to provide pedestrian access and access for the
handicapped. These costs have been estimated in a range of from $40,000 to $60,000
per unit for a standard single-family housing subdivision. While these costs contribute
to the cost of a housing unit, the improvements required by the City are typical of all
cities in the State and do not impose a significant constraint on the development of
housing in the City. City regulations are intended to generally encourage high-quality
private development and new construction.
Construction Costs
Construction costs are those incurred in actually constructing a dwelling unit. These
costs can vary depending on the location or style of development. Important
determinants of construction costs include the amenities built into the unit, materials
used, the prevailing labor rate (a significant issue with subsidized affordable housing
given recent legislation), and the difficulty of building on the site. In Arroyo Grande,
expansive soils may necessitate more extensive foundations for housing units.
Residential construction costs per square foot vary, with an estimated $102.00 per
square foot for single family, $95.00 for condominiums, and $93.00 for apartments
Financial Costs
Because of the size of most housing developments, developers generally have to
borrow money to cover the costs outlined above. As with allloansj interest must be
paid to the lender. Interest rates for construction loans, as well as mortgage, tend to be
tied to the prime rate (the prime rate is the interest rate at which banks loan money to
their best corporate clients). As a rule of thumb, construction loans are generally two or
Page 86 November 11, 2003
City of Arroyo Grande 2003 Housing Element
more percentage points above the prime rate. Currently, interest rates are generally
low, but recent reports indicate that they may be increasing over the Housing Element
planning period. The prime rate is currently at 4 percent (July, 2003). While this is not
considered a significant constraint, the time it takes to process and construct a project
can affect the amount of interest paid. This Housing Element includes a policy to
streamline the processing of affordable housing that could reduce the financial costs of
these projects.
Insurance A vailabilitv
One of the significant issues identified by the Housing LHTF as reported by local
developers is the cost and/or availability of workers, compensation and liability
insurance. These types of insurance have become very costly or are not available at
all. This is having a negative effect in the construction of multi-family units such as
condominiums and apartments as well as a substantial cost per unit. This situation has
escalated to a point that only single-family residential development appears profitable.
This has and continues to be a constraint to multi-family and condominium
development, which are the types of housing most feasible for affordable housing. This
is a situation that needs to be addressed at the State level in that it is generally out of
the control of the City.
5.4 Local Housing Funds I
The City of Arroyo Grande has a Redevelopment Agency (RDA) in place that collects
tax increments to finance public projects as well as affordable housing. Under State
law, 20 percent of the tax increment must be set aside for affordable housing. The
Agency currently has $85,719 in its housing fund. While it is ex~ected that this fund will
increase over the years as the Agency was only recently established in 1996, the
increased amount will not generate significant funds during this housing period.
The City also adopted an inclusionary housing program in March 2000 that generates
in-lieu housing funds. As of July 1, 2003 this program had funds in the amount of
$631,882 devoted to affordable housing. To date, the City has allocated funds from this
source for two affordable senior housing projects. Like the RDA fund, this fund will
increase during the housing period as additional projects are developed.
The RDA fund and the inclusionary in-lieu fund can support affordable housing. These
funds can be directly utilized to assist affordable housing projects in the City or can be
leveraged toward qualifying for State and federal housing funds. It is the intent of the
City to utilize available funds to support affordable housing projects and programs.
5.5 Energy Conservation Opportunities and Programs
The California Building Code (specifically Title 24) requires that all new residential
development comply with specific energy conservation standards. These require a
multitude of measures to reduce energy usage in a housing unit, thus reducing the
monthly costs for the housing unit occupants. Energy costs are an important factor
when determining the afford ability of a housing unit. All new construction in the City
must comply with Title 24. These regulations are periodically modified to reduce energy
usage as part of ongoing updates to Title 24 and the California Building Code, which are
required to be adopted by the City.
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City of Arroyo Grande 2003 Housing Element
The major issue with energy conservation is with existing housing units, maintaining
their level of affordability. Factors that affect energy use must be put in the context of
identifying opportunities for conservation. Additional insulation, weather stripping, and
energy efficient windows are three methods to reduce energy consumption. Several of
the local utility companies have programs to retrofit existing units to encourage reduced
energy consumption. A policy is provided in this Housing Element to require
compliance with energy regulations and codes in new development and to encourage
and support retrofit programs for existing units.
5.6 Current and Past Housing Efforts
Evaluation of 1993 Proarams
Below are the programs identified in the 1993 Housing Element followed by a brief
evaluation or status comment.
1. The City will establish an affordable housing fund to accept housing-related
fees; this fund will be used to construct lower income housing, write-down
land or financing costs, rehabilitate or preserve existing units, or pay for
implementation programs within this housing element. At the same time that
the City establishes said funds, it will also adopt guidelines for the utilization
of the monies, including establishment of general priorities and procedures.
Response: The City enacted an affordable housing fund in March 2000 in
Ordinance No. 514 C.S. entitled "Affordable Housing Requirements". An affordable
housing in-lieu fee was established for projects requiring General Plan amendments
and/or changes to the zoning designation increasing residential density, and for all
other residential development projects greater than four (4) units (projects producing
less than 4 units are exempt from affordable housing requirements). The in-lieu fee
associated with General Plan/Zoning Map amendments was established at 2.5% of
the value of new construction for each required affordable unit, and 1 % of the value
of new construction for all other residential projects.
During the 2001 General Pan Update, the program was amended to increase the
affordable housing in-lieu fee to 3%.
2. The City will establish a streamlined permit processing procedure for low-
income housing projects.
Response: The City has not formally adopted a streamlined permit processing
procedure for low-income housing projects nor received any applications proposing
such use. Recent projects proposing affordable housing above what the Affordable
Housing Ordinance requires have received priority and been processed
expeditiously.
3. The City will review, and where necessary amend, its zoning ordinance to
ensure that the following incentive programs are in compliance with the most
cUffent provisions of State law: second units in residential zones; mobile
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City of Arroyo Grande 2003 Housing Element
homes and manufactured housing in all residential zones; density bonuses for
subdivisions that include an affordable housing component. In addition, the
City will incorporate density bonus provisions to implement policy A.21. for the
condominium/townhouse and multifamily districts.
Response: The City's Second Residential Dwelling Ordinance was amended June
10,2003 in compliance with State law (AS 1866). The ordinance provides a simpler,
more expedient process, much broader opportunity, and incentives for property
owners to establish second dwellings, while still maintaining oversight through basic
criteria and uniform development standards. The incentives are through decrease in
development fees and the elimination of the Conditional Use Permit (CUP) process.
City control is maintained through the Minor Use Permit (MUP) process when
deyiations to the ordinance are sought Mobile homes are allowed by State law in all
residential districts, and the City has a separate Mobile Home Park (MHP) zoning
district as well. The City's Affordable Housing Ordinance allows for density bonuses
consistent with State law, and the proposed Housing Element Update includes
programs to strengthen the City's inclusionary housing requirements including
greater and broader density bonuses.
4. At least biannually, the City will review development-related processes and
procedures and report on ways to eliminate unnecessary delays or other
costs that affect the production of housing. Said report shall be submitted to
the Planning Commission who shall forward a recommendation to the City
Council.
Response: The City did not produce biannual reports that specifically relate to the I
processes and procedures for eliminating unnecessary delays associated with
housing development projects, but this Housing Element Update. serves this
purpose.
5. The City will formally adopt an ordinance related to traffic impact mitigations.
If said ordinance includes fees, they shall also include provisions for reducing
those mitigation fees for lower income units as an incentive for affordable
housing. Said reductions may be "sca/edn so that greater reductions will be
afforded projects meeting very low income housing needs and/or the needs of
other special groups in the community.
Response: The City adopted a Level of Service (LOS) Policy and Traffic Study
Guidelines in February 2000 that established thresholds of significance for traffic
impacts and standardized traffic study requirements. Mitigation impact fees are
required for projects that exceed the City's traffic impact threshold, but there is no
specific provision for reducing these impact fees for lower income units as an
incentive for affordable housing. The City Council has the authority to reduce these
fees on a case-by-case basis for any project believed to have justification. The
proposed 2003 Housing Element addresses proposed impact fee reductions for
affordable housing projects.
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City of Arroyo Grande 2003 Housing Element
6. At least annually, the Planning and Public Wo'*s Departments will provide an
update to the City Council on available water supplies, projected demand
under the General Plan and the status of projects to ensure adequate supply
to meet the needs of the community in accordance with the (1991) General
Plan, including this (1993 Housing) Element.
Response: Every five (5) years, the Public Works Department prepares an Urban
Water Management Plan that is submitted to the State, and a Water Master Plan
that is prepared for the City Council. If this program is retained in the updated
Housing Element, it should be revised to read "periodically" instead of annually to
better reflect the reality of preparing these Plan updates. The City Council does,
however, receive at least annual report of water resource utilization and per capita
consumption, including most recently the Water Conservation Program report.
7. The City will require the continued affordability of low-income units that are
constructed as a result of government funds or regulations or that receive a
density bonus or other incentive., The term of such condition shall be
determined on a case-by-case basis but shall comply with applicable
requirements of State law.
Response: Affordable housing projects constructed with financial assistance from I
non-profit organizations or government subsidies are in compliance with applicable
State law requirements applicable at the time of approval. Affordable housing
projects approved since the adoption of the City's Affordable Housing Ordinance are
required to ensure affordability for 30 years though deed restriction and/or
development agreement.
8. The City will adopt an ordinance that requires that new housing projects and
subdivisions of at least 50 units in size to provide at least 10% of the units as
affordable to low income households; and projects and subdivisions of 25-49
units or lots in size to provide at least 5% of the units as affordable to low
income households. Said ordinance may allow exceptions based on findings
that provision of such units is infeasible on the site; however, in cases of
exceptions, the City will require dedication of land or payment of fees in
accordance with Policy A. 12. The ordinance shall also allow a 10% density
bonus in cases where the required low-income units are constructed on site.
Said ordinance will also require the payment of fees for projects with fewer
than 25 units in accordance with Policy A. 13.
Response: These provisions are included in the current Affordable Housing
.
Ordinance, but the few projects of more than 25 units pursued since 1993 were also
allowed to pay fees in lieu of providing 5 to 10% affordable housing without
requesting use of a density bonus.
9. The City will study alternative methods for calculating allowable residential
densities to allow a greater number of smaller units instead of large units in
appropriate circumstances. For example, if senior housing is found to
generate fewer public seNice and other impacts, it may be appropriate to
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City of Arroyo Grande 2003 Housing Element
allow more such housing instead of large single family dwellings. The results
of this study shall be incorporated into an ordinance that specifies the
conditions necessary for modified density calculations to be used.
Response: The 2001 General Plan added greater flexibility for higher densities by
creating a Mixed Use (MU) district that allows up to twenty-five (25) dwelling units
per acre. Pending Development Code Amendments also provide dwelling unit
equivalents for smaller and larger than two bedroom units to calculate density.
10. The City shall continue to work with People's Self Help Housing Corporation,
or other non-profit agencies to secure funds through State and federal
programs for development of new low-income housing, and rehabilitation of
existing low-income households.
Response: Several projects were developed since 1993, and although there are no
current projects pending, the City has been in communication with both People's
Self Help Housing and the San Luis Obispo Housing Authority regarding potential
additional affordable rental housing, including farmworker and senior or special
needs housing projects.
11. The City will amend its zoning ordinance to allow, (in addition to allowing
residential uses in the Village area) the following: a) residential in conjunction
with commercial in all commercial zones, subject to discretionary review.
Criteria for approving residential uses shall be included in the ordinance.
Response: The 2001 General Plan includes Mixed Use (MU) zoning districts and
,
pending Development Code Amendments will implement these provisions district by
district as required.
12. The City will maintain, a land inventory of available vacant property zoned for
residential uses and make the list available to the public and developers.
Response: The City has not developed nor maintained a vacant land inventory for
public use. However the City is currently developing a Geographic Information
System (GIS) that will enable such an inventory to be generated The 2001 General
Plan Update included the basic inventory of vacant and underutilized sites used for
this Housing Element Update.
13. The City Building Department shall track all new construction and
rehabilitation projects and provide information to the Planning Department on
a monthly basis in order to keep the City's computer-based Land Use
Inventory updated.
Response: The Building Department provides other City departments with a monthly
list of building permit activity, but it is not yet integrated into a GIS. Monthly reports
of the limited changes to the City's housing inventory are considered excessive but
an annual summary would be realistic.
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City of Arroyo Grande 2003 Housing Element
14. The City shall meet with representatives of the Cities of Pismo Beach and
Grover Beach to discuss the possibility of forming an inter-city housing
authority.
Response: Representatives from communities within the South County area have
met to discuss Housing-related issues. The concept of forming a South County
regional housing authority has not yet been speCifically discussed, however.
15. The City will consider a citywide funding mechanism to' accumulate monies
for the projection of lower income housing. Options may include a citywide
special tax. If such a funding mechanism is approved, then Policies A. 12 and
A. 13 requiring "inclusionary" housing or in-lieu fees may be modified.
Response: Such a citywide funding mechanism has not yet been considered, but
are again proposed as part of this Housing Element Update.
16. If grant application assistance is available from People's Self Help' Housing
Corporation, or other groups, the City will apply for CDBG rehabilitation funds
to enable rehabilitation for low-income households.
Response: The City has been working with the Economic Opportunity Commission
(EOC) using COSG funding for its home repair program.
17. The City will coordinate its efforts with the San Luis Obispo Housing Authority
to continue receiving Section 8 subsidy monies.
Response: The City has continued to work with the local Housing Authority for
Section 8 subsidy monies.
18. The City will provide home repair videos to the public at little or no cost.
Response: This program has not been implemented, nor is the demand or need
evident due to the few substandard units within the City.
19. The City will conduct a biannual inventory of the housing stock condition and
prepare a report for presentation to the City Council.
ResDonse: This program has not been implemented: See response to number 13
above.
20. The City will develop and adopt a revised condominium conversion ordinance
that requires tenant notice, opportunities for tenant purchase of units and
mitigations for the loss of low-income rental units through the conversion.
Such mitigations may include, but are not necessarily limited to, provision of
replacement housing, relocation assistance, and/or payment of fees into the
housing fund.
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City of Arroyo Grande 2003 Housing Element
Response: The Development Code standards for condominium conversions include
all of the above requirements, but the lack of vacancy factor prerequisite has
prevented any condominium conversion despite requests.
21. The City will develop and adopt an ordinance intended to encourage the
retention of existing mobile home parks and to provide tenant protection in
cases of approved conversions. Such protection shall include, but is not
necessarily limited to, notice to tenants at least one year in advance of any
conversion, reasonable opportunities for park purchase by the tenants, and
relocation assistance for low-income tenants.
Response: This program has not been implemented. The City would utilize the
same criteria and procedures required for condominium conversion, however by
interpretations until this issue is considered.
22. The City will adopt an ordinance requiring tenant notice and relocation
assistance in cases of demolition of multi-family housing. Such an ordinance
shall provide for at least one year's notice to tenants except in cases of
imminent risk to health or safety. The ordinance will also specify minimum
requirements for relocation assistance for displaced tenants. Such
I
assistance may include providing information about other available housing I
and providing a stipend to help offset moving expenses for low-income
households.
Response: This program has not been implemented.
23. The City will periodically review its user charges for public services and
facilities to ensure that the charges are consistent with the costs of
improvements and maintenance.
Response: The City reviews its user charges for public services and facilities on an
annual basis.
24. The City will require new projects to be reviewed by the Staff Advisory
Committee and by the Planning Commission and/or the Architectural Review
Committee to ensure compatibility with existing neighborhoods.
Response: The Staff Advisory Committee, Architectural Review Committee and
Planning Commission review all discretionary development projects to ensure
compatibility with existing neighborhoods.
25. The City will require housing developments for low and moderate-income
households to be designed so that they do not stand out in the neighborhood,
in order to enhance the sense of belonging to the community. Forms,
materials, and proportions should be utilized which are compatible with the
character of the surroundings.
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City of Arroyo Grande 2003 Housing Element
Response: Design review of affordable housing projects is conducted on a case-by-
case basis to ensure that the units blend architecturally with the surrounding
neighborhood.
26. The City shall maintain a list of all dwellings within the City that are subsidized
by government funding or low-income housing developed through local
regulations or incentives. The list shall include, at a minimum, the number of
units, the type of government program, and the date at which the units may
convert to market-rate dwellings.
Response: This program has not been implemented, but the Housing Authority,
People's Self Help Housing and City records enable potential annual inventory.
27. The City shall add to existing incentive programs, and include in all new
incentive or regulatory programs, requirements to give notice prior to
conversion to market rate units as described in Policy C.2.
Response: This is currently a requirement.
28. The City will review its zoning to allow group housing in residential zones in
accordance with State law; ccrhousing and similar "unconventional" housing
arrangements; farmworker housing in the agricultural zone; "life care" and
other combinations of residences with nursing care for seniors.
Response: The City intends to include group housing in the 2004-2005
Development Code Amendments for residential districts.
29. The City will institute an "operation match-up" program to match owners of
underutilized housing units with seniors, single parents, and other low-income
persons needing housing.
Response: This program has not been implemented, nor are many units
"underutilized" .
30. The City shall continue to provide information about housing opportunities
and services for homeless persons through the Police Department, as well as
City Hall.
Response: The City currently provides this information.
31. The City shall cooperate with the other cities, the County and other agencies
in the development of programs aimed at providing homeless shelters and
related services.
Response: The City continues to cooperate with other jurisdictions and agencies
regarding homeless programs.
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City of Arroyo Grande 2003 Housing Element
32. The City will revise its zoning ordinance to allow the establishment of
homeless shelters for overnight lodging in religious or social organization
buildings in those areas designated for high density residential, commercial or
public facility uses, subject to approval of a Conditional Use Permit (CUP).
Response: The City allows these facilities in all multi-family and some mixed use
districts subject to CUP approval.
33. The City will implement Title 24 of the California Code on all new
development.
~esponse: The City requires Title 24 compliance on all new development.
34. The City will work with PG&E and Southern California Gas Company to
encourage existing residents to participate in energy efficiency retrofit
programs. The City will consider sponsoring an energy awareness program,
in conjunction with PG&E and/or Southern California Gas Company to
educate residents about the benefits of various retrofit programs.
Response: This is an on-going program.
35. The City will amend its subdivision ordinance to implement the subdivision
map act related to subdivision orientation for solar access.
Response: The City's Development Code includes a provision for solar access
, easements.
36. The City will amend its zoning ordinance to allow for mixed residential and
commercial development, where appropriate.
ResQonse: The City enables Mixed Use (MU) developments in the 2001 Land Use
.
Element of the General Plan and is currently updating its Development Code to be
consistent with the General Plan.
37. The City will amend its subdivision ordinance to require that new subdivisions
include transit opportunities and bicycle and pedestrian routes, where feasible
and appropriate.
Response: The City's Development Code includes provisions for dedication of land
.
for local transit facilities and other public amenities such as walking paths, bicycle
paths and horse trails. The 2001 General Plan identifies other alternative circulation
proposals that will be implemented by Bikeway Plan, Transit Plan and other Specific
Plans.
38. The City will continue to provide information from the Department of Fair
Employment and Housing. Such information will be posted at City Hall, the
City/County Library, the Chamber of Commerce and other frequented public
places.
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City of Arroyo Grande 2003 Housing Element
Response: The City provides this information at multiple locations.
39. The City will refer persons experiencing discrimination in housing to California
Rural Legal Assistance, and the Department of Fair Employment and Housing
district office in Ventura.
Response: The City will refer persons as stated above.
5.7 General Plan Consistency
The City's land use element of the 2001 General Plan currently designates the sites
noted in this Housing Element for residential purposes at densities consistent with the
goals of providing housing to households within the full range of incomes. The policies
in this Housing Element will guide that process, ensuring internal consistency among
the General Plan elements.
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City of Arroyo Grande 2003 Housing Element
APPENDIX A
PERSONS CONTACTED
Ted Bench, Dana Lilly. County of San Luis Obispo Planning Department
Peter Brown. San Luis Obispo Council of Governments
Jerry Bunin. Home Builders Association of the Central Coast
Paul Dirksen, Jr. Housing Policy Analyst, California Department of Housing and
Community Development
Carol Hatley. Housing Authority of San Luis Obispo
Don Spagnolo. Arroyo Grande Public Works Director \
Page 97 November 11, 2003
City of Arroyo Grande 2003 Housing Element
APPENDIX B
BIBLIOGRAPHY
California Department of Housing and Community Development, Housing Element
Questions and Answe~, June 2001
City of Arroyo Grande, Housing Element, June 1993
City of Arroyo Grande, 2001 General Plan Policy Document and Elements, October
2001
City of Arroyo Grande, 2001 General Plan Integrated Program Environmental Impact
Report, May 2001
San Luis Obispo Council of Governments, Regional Housing Needs Plan, January 2003
San Luis Obispo County, Tribune Newspaper, Numerous Articles on Housing, 2002-
2003
United States Department of Commerce, Bureau of the Census, 2000 Census of
Population and Housing, Summary Tapes 1 and 3,
Page 98 November 11, 2003
11.8.
MEMORANDUM
TO: CITY COUNCIL
FROM: LYNDA K. SNODGRASS. DIRECTOR OF FINANCIAL SERVICES 9
SUBJECT: CONSIDERATION OF BUSINESS LICENSE ORDINANCE AND
RESOLUTION ESTABLISHING BUSINESS LICENSE FEE SCHEDULE
DATE: NOVEMBER 11, 2003
RECOMMENDATION:
It is recommended the City Council:
. Adopt an Ordinance to repeal Chapters 5.04, 5.08, 5.12, 5.20, 5.32, 5.40, 5.48, and
5.76 and add a new Chapter 5.02 of the Arroyo Grande Municipal Code regarding
business license procedures and practices.
. Adopt the attached Resolution establishing a business license fee schedule.
FUNDING:
An estimated increase of $10,000 in revenue will result from the modest increase in
business license fees.
DISCUSSION:
On October 28th, 2003, the City Council introduced for first reading an Ordinance
repealing portions of Title 5 of the Arroyo Grande Municipal and adding thereto a new
Chapter 5.02.
After the republication of the City of Arroyo Grande's Municipal Code, the Financial
Services Department recognized that sections of the Code dealing with business
licenses needed to be modernized and condensed. In addition, during the Bi-Annual
Budget process and the California State budget crisis, staff searched for the means to
increase City revenues. The adopted Bi-Annual Budget for Fiscal Years 2003-04 and
2004-05 included an additional $10,000 in business license fees predicated on the
adoption of a $5 per year and $1 per employee increase for each business in Arroyo
Grande.
The current business license fee is twenty-five dollars ($25) for each business plus four
dollars ($4) for each employee. Increasing this amount to thirty dollars ($30) and fIVe
dollars ($5) respectively are small amounts that compare favorably with surrounding
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CITY COUNCIL
CONSIDERATION OF BUSINESS LICENSE ORDINANCE AND RESOLUTION
NOVEMBER 11, 2003
PAGE 2
Regular
City Home Business Businesses Add'l Cost
Arroyo Grande $25.00 $25.00 $4.00
Atascadero $25.00 $50 - $100 $5 - $20
Grover Beach $55.00 $55.00 N/A
Morro Bay $98.37 $98.37 $29.00
Paso Robles $36-$75+ $36-$75+ N/A
Pismo Beach % Gross Receipts % Gross Receipts N/A
San Luis Obispo $25.00 + $25.00 + N/A
Santa Maria $30.00 $30.00 Other Factors
+ Percent of gross receipts.
The City of Arroyo Grande has one of the lowest business license fees in the area,
especially considering that the cities of Paso Robles, Pismo Beach, and San Luis
Obispo incorporate a percentage of the business' gross receipts into their annual fee.
Increasing the local business license fee from twenty-five ($25) to thirty ($30) dollars for
the set fee portion and from four dollars ($4) to five dollars ($5) for each employee are
minimal increases. After the increase, the business license fees charged by the City of
Arroyo Grande will still be in the lowest quartile for cities in the area.
The Municipal Code provisions establish the overall framework for the program/policy,
while implementation measures are established by resolution. The attached Ordinance I
repeals previous legislation, establishes a revised framework for the collection of
business license fees, and allows the City Council to modify the fee rates by resolution.
The revised chapters within Title 5 of the Municipal Code have been structured to
eliminate references to specific dollar amounts. Should the City Council choose, this
structure would allow a yearly update by resolution using the. Engineering News Record
Building Cost Index or other cost of living index.
AL TERNA TIVES:
The following alternatives are provided for City Council consideration:
- Approve the adoption of an ordinance repealing and .adding a new chapter of
Title 5 and adoption of a resolution establishing business license fee;
- Retain the existing chapters of Title 50f the Arroyo Grande Municipal Code;
- Modify staff recommendations and approve;
- Provide direction to staff.
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ORDINANCE NO. -
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE REPEALING CHAPTERS 5.04, 5.08, 5.12, 5.20, 5.32, 5.40,
5.48, 5.76 AND ADD A NEW CHAPTER 5.02 OF THE ARROYO
GRANDE MUNICIPAL CODE REGARDING BUSINESS LICENSE
PROCEDURES AND PRACTICES
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE
DOES ORDAIN AS FOllOWS:
SECTION 1: Chapters 5.04, 5.08, 5.12, 5.20, 5.32, 5.40;5.48, and 5.76 of Title 5 of the
Arroyo Grande Municipal Code are hereby repealed and replaced with Chapter 5.02, as
shown in Exhibit A attached hereto and incorporated by this reference as though set I
forth in full.
SECTION 2: If any section, subsection, subdivision, paragraph, sentence, clause or
phrase of this Ordinance or any part thereof is for any reason held to be unlawful, such
decision shall not affect the validity of the remaining portion of this Ordinance or any
part thereof. The City Council hereby declares that it would have passed each section,
subsection, subdivision, paragraph, sentence, clause, or phrase thereof, irrespective of
the fact that anyone or more section, subsection, subdivision, paragraph, sentence,
clause or phrase be declared unlawful.
SECTION 3: A summary of this Ordinance shall be published in a newspaper published
and circulated in the City of Arroyo Grande at least five (5) days prior to the City Council
meeting at which the proposed Ordinance is to be adopted. A certified copy of the full
text of the proposed Ordinance shall be posted in the office of the Director of
Administrative Services/Deputy City Clerk. Within fifteen (15) days after adoption of the
Ordinance, the summary with the names of those City Council members voting for and
against the Ordinance shall be published again, and the Director of Administrative
Services/Deputy City Clerk shall post a certified copy of the full text of such adopted
Ordinance. This Ordinance shall take effect and be in full force and effect thirty (30)
days after its passage.
On motion of Council Member , seconded by Council Member , and
on the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
the foregoing Ordinance was passed and adopted this day of November 2003.
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ORDINANCE
PAGE 2
TONY M. FERRARA, MAYOR
ATTEST:
KELL Y WETMORE, DIRECTOR OF ADMINISTRATIVE SERVICESI
DEPUTY CITY CLERK
I
i
APPROVED AS TO CONTENT:
STEVEN ADAMS, CITY MANAGER
APPROVED AS TO FORM:
:
,
EXHIBIT "A"
CHAPTER 5.02
BUSINESS LICENSE PROVISIONS
5.02.010. Purpose.
The provisions of the business license fees are enacted solely to raise revenue
for general municipal purposes and are not intended for regulations.
5.02.020. Business License Certificates Required.
Business licenses are hereby imposed upon all businesses, professions, trades,
vocations, enterprises, establishments, occupations, or calling conducting business in
the City to which a business license may lawfully apply, a yearly base rate amount plus
a per employee fee, each respectively specified by City Council resolution. It shall be
unlawful for any person to transact and carry on any business, trade, vocation,
enterprise, establishment, occupation, or calling in the City not otherwise exempt
without first having procured a business license certificate from the City or complying
with all of the applicable provisions of this Chapter.
The business license certificate shall be evidence only of the fact that such
business license fee has been paid. Neither the payment of the business license fee
nor the possession of the business license certificate shall authorize, permit, or allow
the doing, of any act which the person paying or holding such business license
certificate would not otherwise be entitled to do; nor shall it be construed as permission
to conduct or carry on a business at any place within the City where the conducting or
carrying on a business in such a manner as to create or maintain a nuisance.
5.02.030. Exemptions.
The following persons and organizations are exempt from the provision of this
Chapter:
A. Minors Under The Age Of 18. Businesses owned and conducted by minors
under the age of eighteen (18) years shall be exempt from the business license fee
provisions of this Chapter where all of the following conditions exist and legal
documentation is provided to support that:
1. All persons engaged in the operation of the business are under the age
of 18 years old.
2. All persons engaged in the operation of the business have a bona fide
ownership interest in the business.
B. Charitable, Religious, And Nonprofit Organizations.
1. Organization Activities. The provision~ of this, Chapter shall not be
deemed or construed to require the payment of a business licenses fee to conduct,
manage, or carry on any business, occupation, or activity of any institution or
organization recognized by a tax board of the State with a "Statement of Domestic Non
Profit Organization" or the Internal Revenue Service of the United States which is
conducted wholly for the benefit of charitable, religious, or nonprofit purposes and from
which profit is not derived, either directly or indirectly, by any person.
2. Nonexempt activities. The exemption provisions of this section shall not
be construed to extend to any person, business, corporation, or organization receiving a
fee, wage, stipend, salary, remuneration, compensation, or pay for the performance of
~-
EXHIBIT "A"
PAGE 2
any business, occupation, or activity related to exempt organization activities,
occupation, or activity being undertaken.
C. Banks And Insurance Companies. Section 27 of Article XIII of the
Constitution of the State of California provides exemption from the business license fee
to banks, national banking associa~ions, insurance companies, and insurance
associations.
D. Conflicts With Federal And State Laws Or Contractual Agreements. The
provisions of this Chapter shall not be construed to require a person to obtain a
business license certificate prior to doing business within the City if such requirement
conflicts with the applicable statues, laws, or constitution of the United States or the
State of California or other contractual obligations or franchise agreements. The
Financial Services Director may develop administrative guidelin.es concerning
exemptions, apportionment, and any other matters that he/she determines as necessary
for the lawful and effective implementation of this Chapter.
5.02.040. Definitions.
For the purposes of this Chapter, unless otherwise apparent from the context,
certain words and phrases used in this Chapter are defined as follows:
A. "Business" shall mean and include professions, trades, vocations, rentals,
leases, enterprises, establishments, and occupations and all and every kind of calling,
any of which is conducted for the purpose of earning in whole, or in part, a profit or
livelihood. whether or not a profit or a livelihood actually is earned thereby, whether paid
in money, goods, labor, or otherwise, and whether or not the business has a fixed place
of business in the City.
B. "Financial Services Director" shall mean the individual designated by the City
Manager to collect business license fees pursuant to the provisions of this Chapter.
C. "Employee" means all persons engaged in the operation or conduct of any
business, whether as owner, any member of the owner's family, partner, agent,
manager or solicitor, and any and all other persons employed or working in such
business whose name appears on the company payroll.
D. "Person" shall mean and include all domestic and foreign corporations,
associations, syndicates, joint-stock corporations, partnerships of every kind, clubs,
Massachusetts trust, business, and other common law trusts, societies, and individuals
transacting and carrying on any business in the City, other than an employee.
E. "Within the City" means within the corporate limits of the City as they now
exist, or may hereafter be made to exist, by subsequent exclusion or addition.
5.02.050. General Business License Fees.
Generally the business license fees shall be imposed as follows:
A. The owner or manager shall pay a yearly general business licenses base rate
established by City Council resolution; and
B. A fee for each employee, partner or other associate at a rate established by
City Council resolution.
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EXHIBIT "A"
PAGE 3
5.02.060. Specific Business License Fees.
The following specific business will be charged at a separate rate established by
City Council resolution:
A. Billboards
B. Commercial Auctions
C. Hospitals and Rest Homes
D. Motels and Hotels
D. Public Utilities
E. Taxicabs
F. Trailer Parks and Mobilehome Parks
G. Contractors
-
5.02.070. Business License Certificate Applications. .
Every person required to have a business license certificate pursuant to the
provisions of this Chapter shall make a written application to the Financial Services
Director and submit the following information.
A. The nature or kind of business for which the business license certificate is
requested;
B. The place where the business is to be conducted and, if the business is not to
be conducted at a permanent location, the residence address, identified as such, of the
owners of the business;
C. If the application is made for the issuance, of a business license certificate to
a person to do business under a fictitious name, the names, social security numbers,
and residence addresses of the owners of the business;
D. If the application is made for the issuance of a business license certificate to
a corporation or partnership, the names, franchise license fee number, and residence
addresses of the officers or partners thereof; and
E. Any furtHer information that the Federal or State taxing authority or the
Financial Services Director may require to enable the issuance of the business license
certificate.
5.02.080. Business License Approval Process.
A. Each business license application for a business to be conducted within a
building shall be approved by the fire, health and planning departments to ensure
conformance of with existing zoning, building, fire, health, and other public safety laws.
B. Such review shall take place before the issuance of the license and prior to
the operation of said business.
C. Community development department approval shall be granted only after
zoning and building officials have approved the license application.
5.02.090., Business License Certificate Renewals.
A. The annual business license fee shall be due and payable to the City on the
first day of January of each year and shall be delinquent (30) days thereafter.
B. No renewal of a business license certificate shall be issued until payment in
full of all delinquent business licenses fees, including accrued interest, and applicable
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EXHIBIT "A"
PAGE 4
penalties thereon are received by the City. It shall be the responsibility of the applicant
to ensure renewal of the business license certificate.
5.02.100. Nontransferable License.
No license issued pursuant to the provisions of this title shall be transferred or
assigned, nor shall such license be construed as authorizing any person other than the
licensee to engage in the licensed business.
5.02.110. Business License Content.
All business license certificates required by the provisions of this Chapter, unless
otherwise provided in this Chapter, shall be prepared and issued by the Financial
Services Director upon _payment to the City of the proper amount of business license
fees. Each business license certificate shall state upon the face thereof the following:
A. The name of the person to whom the business license certificate is issued.
B. The type of business.
C. The location or address of the business.
D. The date of the expiration of the business license certificate.
E. That the business license ce~ificate whe~ issued shall be ~he receipt for the
business license fee paid to the City.
F. That the possession of the business license certificate shall not authorize,
permit or allow the person to do any act that such person would not otherwise be
lawfully entitled to do.
5.02.120. Business License Posting And Keeping.
All business license certificates issued pursuant to the provisions of this Chapter
shall be posted and kept in the following manner:
A. Any persons transacting and carrying on business at a permanent location in
the City shall keep such business license certificate posted in a conspicuous place upon
the premises where such business is carried on.
B. Any persons transacting and carrying on business, but not operating at a
permanent location in the City, shall keep such business license certificate upon them at
all times while transacting and carrying on such business.
5.02.130. ,Business License Duplicates.
A duplicate business license certificate may be issued by the Financial Services
Director to replace any' business license certificate previously issued pursuant to the
provisions of this Chapter, which business license certificate has been lost or destroyed,
upon the filing of a statement of such.fact and the payment of a duplicate fee set by'
resolution of the City Council.
5.02.140. Branch Establishments.
A separate business license certificate shall be issued for each branch
establishment or location of business; provided, however, warehouses and distributing
plants used in connection with, and incidental to, a business charged pursuant to the
provisions of this Chapter shall not be deemed to be separate places of businesses or
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EXHIBIT "A"
PAGE 5
branch establishments; an,d provided further, any person conducting two (2) or more
types of businesses at the same location and under the same management, or at
different locations, but which businesses use a single set or integrated set of books and
records, may elect to pay only one business license fee, except that a fee set by
resolution of the City Council shall be paid upon issuance for each additional branch or
location.
5~02.150. Change Of Location.
No business license fee certificate issued pursuant to the provisions of this
Chapter shall be transferable; provided, however, where a business license certificate is
issued for a person to transact and carry. on a business at a particular place, such
person, upon an applicgtion therefore and the payment of a fee set by resolution of the
City Council, may have the business license certificate reissued for fransacting and
carrying on of such business under such business license certificate at some other
location to which it is to be moved.
5.02.160. Certification Of Records.
A. Conclusiveness Of Statements. No statement required by the provisions of
this Chapter shall be conclusive as to the matters set forth therein, nor shall the filing of
such statements preclude the City from collecting by appropriate action such sums as
are actually due and payable pursuant to the provisions of this Chapter. Such
statements and each of the several items therein contained shall be subject to
, ,
certification by the Financial Services Director, the deputies of the Financial Services
Director, or authorized employees or representatives of the City, who are hereby
authorized to examine such books and records of any certificate holder or applicant for
a business license certificate as may be necessary in their judgment to verify or
ascertain the amount of the business license fee due.
B. Record Retention. All persons subject to the provisions of this Chapter shall
keep complete records of all business transactions and shall retain such records for
examination by the Financial Services Director, the deputies of the Financial Services
Director, or authorized employees or representatives of the City, and maintain them for
a period of at least three years from the annual due date of the federal tax return.
Records, which shall be maintained for audit purposes, shall include State and Federal
payroll tax returns, schedules and records included in such returns, and any and all
work papers used to prepare such returns.
C. Examination Of Records. All business license certificate holders, applicants
for business license certificates, and persons engaged in business in the City are
hereby required to permit an examination of such books and records for the purposes
set forth in this section during regular business hours and at reasonable times.
D. Determination Of License Fee Amounts Due. If any person subject to the fee
imposed by this Chapter fails to submit information required, or if the Financial Services
Director is not satisfied with records and statements filed, the Financial Services
Director shall determine the amount of the business license fee due from such person
by means of such information as may be obtainable and shall mail a notice of the
amount so assessed by serving it personally or by depositing it in the United States
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EXHIBIT "A"
PAGE 6
Post Office at Arroyo Grande, California, postage prepaid, addressed to the person at
their last-known address.
A mistake made in stating the amount of the business license fee shall not, in
any case prevent or prejudice the Financial Services Director from collecting what is
actually due from any person or entity carrying on a trade, calling, profession, or
occupation subject to a business license under this Chapter.
5.02.170. Information Confidential.
It shall be unlawful for the Financial Services Director or designee, or any person
having an administrative duty pursuant to the provisions of this Chapter, to make known
in any manner whatever the business affairs, operations, or other information obtained
by an investigation of the records of any person required to obtain a business license
certificate, or pay a busin-ess license fee, or any other person visited or examined in the
discharge of the official duty of the Financial Services Director except as follows:
A. Disclosure to, or the examination of records and equipment by, another City
official, employee, or agent for the collection of fees for the sole purpose of
administering or enforcing the provisions of this Chapter or collecting the business
license fee imposed by the provisions of this Chapter.
B. The disclosure of information to, or the examination of records by, Federal or
State officials, or the officials of another city or county, if the reciprocal arrangement
exists, or to a grand jury or court of law under a subpoena;
C. The disclosure of information and the results of examination or records of
particular licensees, or relating to particular licensees, toa court of law for proceedings
brought to determine the existence of the amount of any business license fee liability of
such particular licensees of the City;
D. The disclosure, after the filing of a written request to the effect, to the
licensee, or to the license licensees' successors, receivers, trustees, executors,
administrators, assignees, or guarantors if directly interested, of information as to items
included in the measure of any paid business license fee, any unpaid business license
fee, or any amount of business license fee required to be collected, including interest
and penalties; further provided,however, that the City Attorney shall approve each
disclosure, and the Financial Services Director or designee may refuse to make any
disclosure referred to in this subsection when, in their opinion, the public interest would
suffer thereby;
E. The disclosure of the names and business addresses of persons to whom
, business license certificates have been issued and the general type and nature of their
business;
F. The disclosure, by way of public meeting or otherwise, of such information as
may be necessary to the City Council in order to permit the City Council to be fully
advised as to the facts if a license fee payer files a claim for the refund of business
license fees, or submits an offer of compromise with regard to a claim asserted against
them by the City for business license fees, or when acting upon any other similar
matter; and
G. The disclosure of general statistics regarding business licenses collected or
business done in the City.
I ~ ..
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EXHIBIT "A"
PAGE 7
5.02.180. Financial Services Director Adjustment Powers.
The Financial Services Director shall have the power, for good. cause shown,
and documented by the Financial Services Director as a permanent record:
A. To extend the time for filing any required sworn statement;
B. To waive any penalties which would otherwise have accrued;
C. To adjust the amount of the business license fee due;
D. To make refunds for prorations of license fees paid.
5.02.190. Debt To City.
The amount of aDY business license fee and penalty imposed by the provisions
of this Chapter shall be deemed a debt to the City. A suit may be brought against any
person to enforce the collection of the debt described in this Chapter in any could of
competent jurisdiction.
The conviction of any person for transacting any business without a certificate
shall not excuse or exempt such person from payment of any license due or unpaid at
the time of such conviction and nothing herein shall prevent a criminal prosecution for
any violation of the provisions of this.Chapter.
5.02.200. Delinquencies And Penalties.
For failure to pay the business license fee required by the provisions of this,
Chapter prior to the delinquency date,' the Financial Services Director shall add a
penalty of 10% of the business license on the first day of each month after the
delinquency thereof; provided, however, the total amount of such penalty to be added in
no event shall exceed one hundred (100%) of the amount of the business license fee
due.
5.02.210. Enforcement.
A. Duties Of The Financial Services Director And Chief Of Police. It shall be the
duty of the Financial Services Director to enforce each and all of the provisions of this
Chapter, and the Chief of Police shall render such assistance in such enforcement as
may from time to time be required by the Financial Services Director.
, B. Inspections. The Financial Services Director, in the exercise of the duties
imposed by the provisions of this section, and acting through deputies of duly
, authorized assistants, shall have the ,right to enter and examine all places of business
free of charge during normal business hours to ascertain whether the provisions of this
Chapter are being complied with.
C. Penalty For Violation. Any person who violates any provision of 5.02.020 by
transacting and carrying on any business, trade, vocation, enterprise, establishment,
occupation, or calling in the City without first having procured a business license
certificate from the City or without complying with all of the applicable provisions of this
Chapter is guilty of a misdemeanor and is subject to punishment as provided for in
Section 1.16.010 of this Municipal Code.
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EXHIBIT "A"
PAGE 8
5.02.220. Evidence Of Doing Business.
When any person, by the use of a sign, circular, card, telephone book,
newspaper, other publication, or advertising media, shall advertise, hold out, or
represent that they are in business in the City, or when any person holds an active
license or permit issued by a government agency indicating that they are conducting a
business in the City, and such person fails to deny, by a sworn statement given to the
Financial Services Director or designee, that they are not conducting a business in the
City after being requested to do so by the Financial Services Director or designee, that
these facts shall be considered prima facie evidence that such person is conducting a
business in the City.
5.02.230. Remedies Cumulative.
All remedies pre-scribed by the provisions of this Chapter shall'be cumulative,
and the use of one or more remedies by the City shall not bar the use of any other
remedy for the purpose of enforcing the provisions of this Chapter.
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.~-----._---,---,-.-
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ARROYO GRANDE ESTABLISHING AN
ANNUAL BUSINESS LICENSE FEE SCHEDULE
WHEREAS, Government Code Section 37101 authorizes the City of Arroyo Grande to
license, for revenue and regulation, every kind of lawful business transacted within the
City and to fix the fee for such license;
WHEREAS, Arroyo Grande Municipal Code Sections 5.02.050 and 5.02.060 enable the
City Council to establish business license fee rates by resolution; and
- .
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Arroyo
Grande hereby adopts the Business License Fee Schedule set forth in Exhibit "A,"
attached hereto and incorporated herein by this reference. Said Business License Fee
Schedule shall become effective January 1 j 2004.
On motion of Council Member , seconded by Council Member
, and on the following roll call vote, to wit:
AYES:
NOES:
A~SENT:
The foregoing Resolution was passed and adopted this 11th day of November, 2003.
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RESOLUTION
PAGE 2
TONY M. r=ERRARA, MAYOR
ATTEST:
KELLY WETMORE, DIRECTOR OF .
ADMINISTRATIVE SERVICESI DEPUTY
CITY CLERK
APPROVED AS TO CONTENT:
STEVEN ADAMS, CITY MANAGER
APPROVED AS TO FORM:
TIMOTHY J. CARMEL, CITY ATTORNEY
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RESOLUTION
PAGE 3
EXHIBIT "A"
ANNUAL BUSINESS LICENSE FEE SCHEDULE
GENERAL BUSINESS LICENSE FEES
Annual Business License Fee $30.00 plus
Fee for Each Employee $5.00 per employee
SPECIFIC BUSINESS LICENSE FEES .
Billboards $125
Commercial Auctions $25 per day of Auctioning or
$85 annual fee
Hospitals and Rest Homes $40 per year plus
$3.00 per bed
Motels & Hotels $30.00 plus $1.00 per room
Public Utilities $0 with franchise agreement
$70.00 without franchise agreement
Taxicabs $45 for 1st vehicle plus
$15 for each additional vehicle
Trailer Parks and Mobilehome Parks $30.00 plus $1.00 per trailer or
mobile home
Contractors $60
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11.b.
MEMORANDUM
TO: CITY COUNCIUREDEVELOPMENT AGENCY BOARD OF DIRECTORS
FROM: LYNDA K. SNODGRASS, DIRECTOR OF FINANCIAL SERVICES fj!
SUBJECT: FISCAL YEAR 2003-04 FIRST QUARTER BUDGET STATUS REPORT
DATE: NOVEMBER 11, 2003
RECOMMENDATION:
It is recommended the City CounciVAgency Board:
. Approve Carryover Appropriations as detailed.
. Approve Carryover Appropriations as detailed in Schedule B.
. Approve detailed budget adjustments and recommendations as shown in Schedule B.
. Approve Schedules A through F included in the First Quarter Status Report.
FUNDING:
The requested adions will impad several fund budgets as outlined in the First Quarter
Budget Status Report and supporting schedules. The General Fund ending balance will be
impaded by the approval of the recommended revenue and appropriation adjustments as
follows:
Unaudited Fund Balance 6/3012003 $2,992,200
Carryover Appropriations (398.750)
Available Fund Balance 7/1/2003 2,593,450
Approved Adjustments (153,800)"
Proposed Adjustments (16.500)
Total Decrease to General Fund Balance (170.300)
Adjusted Fund Balance 6/3012004 52.575.3012
Because some projects, operations, and orders are not complete by the June 30 year end
close, it is common for the projeded fund balance to be reduced by expenses (carryovers) to
be paid in the current fiscal year.
DISCUSSION:
Each year, the City Council adopts a budget, which commits resources to the
accomplishment of its policies. The Financial Services Department routinely prepares
quarterly budget updates for the City Council.
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CONSIDERATION OF FIRST QUARTER REPORT
NOVEMBER 11, 2003
PAGE 2
The purpose of the City's First Quarter budget review is to:
. Provide a reconciliation of the expected and actual year-end General Fund Balance for
Fiscal Year 2002-03.
. Recommend the re~appropriation of prior year budgets for services/products that were
begun but not completed as of June 30, 2003.
. Conduct a review of City funds to recommend budgetary changes to address known
budget deficiencies.
. Identify budget changes that materially impact fund balances.
SUMMARY OF KEY FIRST QUARTER POINTS:
. The General Fund Fiscal Year 2002-03, unaudited Fund Balance as of June 30, 2003 is
$2,992,189. This 2002-03 beginning Fund Balance is approximately $61,700 more than
was projected in the published Bi~Annual Budget. The difference is detailed in Schedule
F (page 39) and discussed in length on beginning on page 12.
. The projected available General Fund Balance for the current fiscal year is approximately
$2,575,300. The projected General Fund balance is approximately $340,200 over the
City Council goal of a fund balance of 20% of appropriations.
. Carryover appropriations from FY 2002-03 year are reported on Schedule B,
Recommended Adjustments. Carryover budget amounts are unused appropriations in
the 2002~03 Fiscal Year added to the 2003~04 Fiscal Year. The carryover appropriations
are for items or projects that began the purchase process but were uncompleted by June
30, 2003. Carryover appropriations are approximately $10,150 over the estimate
incorporated in FY 2003-04 Bi-Annual Budget.
. A $7,000 carryover appropriation is shown for General Fund equipment. Additionally,
there is approximately $391,750 in carryover capital transfers to the CIP to fund capital
projects still in progress. These projects include $230,000 for the overlay of Branch Mill
Road, $54,500 for the Wilton Place Pavement Project, 87,250 for the Pavement
Management Program; $7,350 appropriated for the Infrastructure Inventory; and $12,650
for the Newsom Springs Drainage Project.
. The City is transitioning from the small Central Coast Cities Self Insurance Fund
(CCCSIF) to the California Joint Powers Insurance Authority (CJPIA) liability pool to
minimize liability risks. During the transition, dual administrative and claims expenses
necessitate the request for an additional appropriation of $10,000. Including the
additional appropriation, overall liability insurance expenses are approximately $21,600
less because of the transfer to the CJPIA.
. Mold was discovered in the Building and Life Safety Department structure, which
caused damage to the building and required removal and treatment. Mold abatement
and related repairs used $5,000 of the Building Maintenance budget. Since these
-------.-- ---------------
CONSIDERATION OF FIRST QUARTER REPORT
NOVEMBER 11, 2003
PAGE 3
expenses were unplanned and unbudgeted, staff has requested an additional
appropriation to cover the costs.
. Before beginning purchase negotiations for a lot adjacent to the Police Station, an
environmental assessment was conducted to evaluate any potential hazard waste on
the lot. A document search and field visit by a geotechnical engineer was carried out.
Staff has requested an additional appropriation to cover the $1,500 cost of this
unbudgeted and unplanned, but necessary service.
. The State of California is requiring Redevelopment Agencies to shift $67.5 million to
schools through an ERAF transfer. The Arroyo Grande Redevelopment Agency is
responsible for approximately $8,400 of the $67.5 million ERAF shift. Because the
RDA is responsible for submitting this payment to the San Luis Obispo County Auditor
Controller by March of 2004, an increase in RDA appropriations of $8,400 is
recommended.
ALTERNATIVES:
The following alternatives are provided for City Council consideration:
1. Approve the following Schedules A through F, included in First Quarter Budget Status
report that summarizes budget adjustments;
A. Unreserved Fund Balance-Control.
B. Recommended Adjustments.
C. Adjustments to Fund Balance.
D. Unreserved Fund Balance-First Quarter Changes.
E. Two Year Comparison of First Quarter Revenues and Expenses.
F. Fund Balance Reconciliation.
2. Deny staff recommendation and reject all schedules;
3. Modify staff recommendation and approve selected schedules;
4. Provide direction to staff.
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