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Agenda Packet 2004-04-13 CITY COUNCIL Ctt! of AGENDA ArrOlo Grancle Tony M. Ferrara Mayor Sandy Lubin Mayor Pro Tem Steven Adams City Manager Thomas A. Runels Council Member Timothy J. Carmel City Attorney Jim Dickens Council Member Kelly Wetmore Director. Administrative Services Joe Costello Council Member AGENDA SUMMARY CITY COUNCIL TUESDAY, APRIL 13, 2004 7:00 P.M. Arroyo Grande City Council Chambers 215 East Branch Street, Arroyo Grande 1, CALL TO ORDER: 7:00 P ,M, 2, ROLL CALL 3, FLAG SALUTE: ARROYO GRANDE LIONS CLUB 4, INVOCATION: PASTOR JAN ARMSTRONG, FIRST PRESBYTERIAN CHURCH, GROVER BEACH 5, SPECIAL PRESENTATIONS: 5.a. Proclamation Recoanizina ADril 30. 2004 as Arbor Dav 6, AGENDA REVIEW: 6a. Move that all resolutions and ordinances presented tonight be read in title only and all further readings be waived. _.-.._._-~ AGENDA SUMMARY - APRIL 13, 2004 PAGE 2 7, COMMUNITY COMMENTS AND SUGGESTIONS: This public comment period is an invitation to members of the community to present 1 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 Any Council Member may request that any item be withdrawn from the Consent Agenda to permit discussion or change the recommended course of action.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 March 16,2004 through March 31, 2004. 8.b. Statement of Investment DeDosits(SNODGRASS) Recommended Action: Receive and file the report of current investment deposits as of March 31, 2004. 8.c. Consideration of Annual Review of City Investment Policy (SNODGRASS) Recommended Action: Approve without changes the City of Arroyo Grande Investment Policy. 8.d. Consideration of ADDroval of Minutes (WETMORE) Recommended Action: Approve the minutes of the Special and Regular City Council Meetings of March 23, 2004 as submitted. 8.e. Consideration of Authorization to Award Bid for Furniture for the Fire Station EXD8nslon (FIBICH) Recommended Action: Authorize the award of bid to Tri County Office Fumiture for furniture for the Fire Station dormitory rooms, training room, conference room, and offices in the amount of $30,448, -- ------.-.. ---- AGENDA SUMMARY - APRIL 13, 2004 PAGE 3 8, CONSENT AGENDA (continued): 8.1. Consideration of Award of Contract to PaDich Construction Com~nY for Construction of the Reservoir No, 1 ReDlacement Proiect. PW 2003-07 (SPAGNOLO) Recommended Action: 1) Award a contract for the construction of the Reservoir No. 1 Replacement Project to Papich Construction Company in the amount of $1,850,910; 2) Authorize the City Manager to approve change orders not to exceed the contingency of $185,900 for use only if needed for unanticipated costs during the construction phase of the project; 3) Direct staff to issue the Notice of Award and Notice to Proceed with other necessary contract documents; and 4) Appropriate $780,000 from the Water Facilities Fund and $420,000 from the Water Fund. 8.g. Consideration of AcceDtance of Grant Deed from ESDlnoza FamUy Trust. et al (Portion of APN 007-791-0051. 433 Caroenter Canyon Road, .... Hlahway Route 227. North Edae of City (STRONG) Recommended Action: 1) Accept the offer of the portion of the Espinoza Family Trust property within the City; and 2) Authorize the City Manager to record the grant deed. 9, PUBLIC HEARINGS: 9.a. Consideration of ProDosed Western EXDansion to the VillaaeDowntown Parklna and Business ImDrovement Area (STRONG) Recommended Action: Continue consideration of the proposed western expansion to the Village Downtown Parking and Business Improvement area to a date uncertain. 9.b. Consideration of Revised Final 'ubseauent Environmental Im~ ReDOrt for Vestina Tentative Tract r.,aD 01-001 and Planned Unit DeveIoDment 01-001 {Previously Known as Tract 1998} (STRONG) Recommended Action: Adopt Resolution to certify the Revised Final Subsequent Environmental Impact Report (SEIR) prepared for Vesting Tentative Tract Map 01- 001 and Planned Unit Development 01-001 as adequate and complete pursuant to the requirements ofthe California Environmental Quality Act (CEQA). 10, CONTINUED BUSINESS: 10.a. None, 11, NEW BUSINESS: 11.a. Consideration of Establishlna a Joint Powers Authority for Manaaement of LoD8Z Dam and Water Treatment Plant (SPAGNOLO) Recommended Action: Provide input and direction to.staff and/or Council Member Runels, the City's representative on the San Luis Obispo Flood Control and Water Conservation District Zone 3 Advisory Committee. AGENDA SUMMARY - APRIL 13, 2004 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) Request Staff to Prepare Staff Report and Alternatives for Televising Planning Commission Meetings. (DICKENS) 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) Consideration of Process for Selecting Community Representatives for the Police Services Enhancement Workshop. 14, COUNCIL COMMUNICATIONS: Correspondence/Comments as presented by the City Council. 15, STAFF COMMUNICATIONS: Correspondence/Comments as presented by the City Manager. 16, COMM!,INITY COMMENTS AND SUGGESTIONS: 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 was prepared and posted pursuant to Government Code Section 54954.2. www,arroyoarande,ora I.a. OF ~LI.FOR~ - ~. Honorar~ Proclan1ation Recognizing Arbor Da~ April 30p 2004 WHEREAS. in 1872 J. Sterling Morton proposed to the Nebraska Board of Agriculture that a special day be set aside for the planting of trees; and WHEREAS, this holiday, called Arbor Day, was first observed with the planting of more than a million trees in Nebraska; and WHEREAS, 2004 is the 132nd Anniversary of Arbor Day, and it is now observed throughout the nation. and the world; and WHEREAS. trees can reduce the erosion of our precious topsoil by wind and water, cut heating and cooling costs, moderate the temperature, clean the air, produce life-giving oxygen, and provide habitat for wildlife; and WHEREAS, trees are a renewable resource giving us paper, wood for our homes, fuel for our fires, and countless other wood products, increase property values, enhance the economic vitality of business areas, beautify our community, and trees, whenever they are planted are a source of joy and splrltial renewal; and WHEREAS. the City of Arroyo Grande has been recognized ,as a Tree City USA by the National Arbor Day Foundation for the 22nd consecutive year and desires to continue its tree-planting ways. NOW THEREFORE. BE IT RESOLVED. that I, Tony M. Ferrara, Mayor of the City of Arroyo Grande, on behalf of the City Council, do hereby recognize and proclaim April 30th as -ARBOR DAY" in the City of Arroyo Grande, and urge all citizens to celebrate -ARBOR DAY" and to support efforts to care for our trees and woodlands and to support our City's community forestry program. BE IT FURTHER RESOLVED. I urge all citizens to plant tree to gladden the heart and promote the well-being of this and future generations. IN WITNESS WHEREOF. I have hereunto set my hand and caused the Seal of the City of Arroyo Grande to be affixed this 13th day of April 2003. TONY M. FERRARA, MAYOR , I 8.a. MEMORANDUM TO: CITY COUNCIL FROM: LYNDA K. SNODGRASS, DIRECTOR OF FINANCIAL SERVICE~ BY: JANET M. HUWALDT, ACCOUNTING SUPERVISOR ~ SUBJECT: CASH DISBURSEMENT RA TIFICA TION DATE: APRIL 13, 2004 RECOMMENDATION: It is recommended the City Council ratify the attached listing of cash disbursements for the period March 13 - March 31, 2004. FUNDING: There is a $660,842.79 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 - March 19, 2004 Accounts Payable Check Register Attachment 3 - March 19, 2004 Payroll Checks and Benefit Checks Attachment 4 - March 26, 2004 Accounts Payable Check Register --~- ----,--------- - ATIACHMENT1 CITY OF ARROYO GRANDE CASH DISBURSEMENTS ?~ de 'PeWIt oi 1/ta"d 16 7~ 1/ta"d 31. 2004 April 13, 2004 Presented are the cash disbursements issued by the Department of Financial Services for the period March 16 to March 31, 2004. Shown are cash disbursements by week of occurrence and type of payment. March 19, 2004 Accounts Payable Cks 114783-114859 2 $ 212,366.70 Payroll Checks and Benefit Checks 3 338,050.37 550,417.07 March 26, 2004 Accounts Payable Cks 114863-114938 4 110,425.72 Two Weeks Total $ 660.842.79 - ----~._- -"-~--_.._--_._..- - CITY OF ARROYO GRANDE INDEX FOR BUDGET DEPARTMENTS EDEN COMPUTER SYSTEM GENERAL FUND (010) SPECIAL REVENUE FUNDS City Government (Fund 010) Park Development Fee Fund (Fund 213) 4001 - City Council 4550 - Park Development Fee 4002 - Administrative Services Traffic Signal Fund (Fund 222) 4003 - City Attorney 4501 - Traffic Fund 4101 - City Manager Transportation Fund (Fund 225) 4102 - Printing/Duplicating 4553 - Public Transit System 4120 - Financial Services Construction Tax Fund (Fund 230) 4121 - Taxes/ Insurance/ Bonds 4556 - Construction Tax 4130 - Community Development Police Grant Funds 4131 - Community Building (CDBG) 4201 - Law Enforcement Equip. (Fd 272) 4140 - Management Information System 4202 - State AB3229 Cops Grant (Fd 271) 4145 - Non Deparbnental 4203 - Federal Universal Hiring (Fd 274) Public Safety (Fund 010) 4208 - Federal Local Law Enforcmt (PO 279) 4201 - Police Redevelopment Agency ( Fund 284) 4211 - Fire 4103 - Redevelopment Administration 4212 - Building & Safety ENTERPRISE FUNDS Public Works (Fund 010) Sewer Fund (Fund 612) 4301 - Public Works-Admin & Engineering 4610 - Sewer Maintenance 4303 - Street/Bridge Maintenance Water Fund (Fund 640) 4304 - Street Lighting 4710 - Water Administration 4305 - Automotive Shop 4711 - Water Production Parks & Recreation (Fund 010) 4712 - Water Distribution 4420 - Parks Lopez Administration (Fund 641) 4421 - Recreation 4750 - Lopez Administration 4422 - General Recreation CAPITAL IMPROVEMENT PROGRAMS (Fund 350) 4423 - Pre-School Program 5501-5599 - Park Projects 4424. - Recreation-Special Programs 5601-5699 - Streets Projects 4425 - Children in Motion 5701-5799 - Drainage Projects 4426 - Five Cities Youth Basketball 5801-5899 - Water/Sewer/Street Projects 4430 - Soto Sport Complex 5901-5999 - Water Projects 4213 - Government Buildings 4460 - Parkway Maintenance Dept. 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HUWALDT, ACCOUNTING SUPERVISOq iJ...-- SUBJECT: STATEMENT OF INVESTMENT DEPOSITS DATE: APRIL 13, 2004 Attached please find a report listing the current investment deposits of the City of Arroyo Grande, as of March 31, 2004, as required by Government Code Section 53646 (b). , -----------,'----- CITY OF ARROYO GRANDE MONTHLY INVESTMENT REPORT ,,44. ~ ?/tad 31, 2004 ,~ April 13, 2004 This report presents the City's investments as of March 31, 2004. It includes all investments managed by the City, the investment institution, type of investment, maturity date, and rate of interest. As of March 31, 2004, the investment portfolio was in compliance 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 comparison of investments based on book values as of March 31, 2004 compared with the prior month and the prior year. ~J~~N'I' Date: March 2004 February 2004 March 2003 Amount: $12,300,000 12,600,000 13,700,000 Interest Rate: 1.44% 1.53% 1.99% --~.~ ------- I.c. MEMORANDUM TO: CITY COUNCIL FROM: LYNDA K. SNODGRASS, DIRECTOR OF FINANCIAL SERYICEt:j SUBJECT: CONSIDERATION OF ANNUAL REVIEW OF CITY INVESTMENT POLICY DATE: APRIL 13, 2004 RECOMMENDATION: It is recommended the City Council approve without changes the City of Arroyo Grande Investment Policy. FUNDING: There is no funding involved with this policy review. DISCUSSION: Attached is the. City's recommended Investment Policy, which was last reviewed by the City Council on March 11, 2003. State law requires the treasurer or chief fiscal officer of local governments to annually submit a statement of investment policy to their governing body. In compliance with that State law, the City's Investment Policy is presented for City Council review. The City's Investment Policy authorizes only the more conservative investments, requires monthly investment reports to City Council, and requires that the due diligence of a "prudent person" be followed in the investment of City funds. Staff modified the City's Investment Policy to be in compliance with current state law by limiting the investments in bankers investments to 180 days (previously limited to 270 days) and extending the investments in prime commercial paper to 210 days (formerly 180 days). Other than these two modifications, the Investment Policy, presented at this time, is the same policy that was approved March 26, 2003. AL TERNA TIVES: The following alternatives are provided for City Council consideration: - Approve the Investment Policy as presented; - Retain prior provisions for investments in bankers investments and prime commercial paper; - Modify Investment Policy and approve; - Provide direction to staff. - CITY OF ARROYO GRANDE INVESTMENT POLICY APRIL 13, 2004 Prepared by the FjrtanCial Services Department TABLE OF CONTENTS ~ Investment Policy................ ........... ....................... .............................. ........... ............................ 1 Investment Objective. ........... .......................... ................. ........................... .......... .............. ........ 1 Prudence Standard...... ............ ....................... .............. ................. ... .............. ....................... ..... 1 Areas of Investment Policy: I. Authorities, Control, and Care............ ............. ................... .............. ....................... 2 n. Portfolio Diversification Eligible Financial Institutions...................................... .............. .............. ..........2 Code Authorized Instruments and Portfolio Limitations ............................... 3 City Placement Practice. .... ........... .............. .................. ... .......... ........................4 m. Cash Management and Maturities ..........................................................................5 Investment Reporting, Policy Review and Effective Policy Term............................................ 5 CITY OF ARROYO GRANDE STATEMENT OF INVESTMENT POLICY April 13, 2004 Investment Policv It is the policy of the City to invest public funds in a manner that will provide maximwn security, adequate liquidity, and sufficient yield, while conforming to all statutes governing the investment of public funds. Investment Obiective The investment objective of the City of Arroyo Grande is to optimize the following goals: . Security . Liquidity . Yield Security of principal is the foremost objective of the City. Security means preserving the safety of City monies, via credit-worthiness study of various depositories, brokers, and issuers; insurance and collateral protection; and diversification of the portfolio. Liquidity means availability of money when needed. Liquidity of the investments guarantees the City's ability to meet operating requirements. Yield means the rate and amount of interest earned. Optimization means striving to achieve a balance between all three objective goals. Should a demand be perceived to prioritize the three goals, they are listed in preferred order. Prudence Standard The standard of prudence to be used by the Financial Services Director/designee shall be the "prudent person rule" and shall be applied in the context of managing City investments. Persons acting in accordance with written procedures and exercising due diligence shall be relieved of personal responsibility Jor a individual investment loss, provided that deviations are reported in a timely fashion, and appropriate action is taken to control adverse developments. 1 -- _._-~------~ - -..---..------ --_.~-- Areas of Investment Policv Authorities. Control and Care: 1. The City currently invests only in the State Local Area Investment Fund. City Manager approval shall be required prior to any other allowable investment vehicle being utilized. 2. The Director of Financial Services has been authorized, via Resolutions #2260 and #2261, to establish deposit and investment agreements and undertake deposit/investment transactions on behalf of the City of Arroyo Grande. The Director of Financial Services may delegate to another official the individual placement of monies in deposit/investment transactions, but must review and approve each one. 3. The Financial Services Department is responsible for implementing this policy, and maintaining a system of internal control designed to prevent employee error or imprudent actions, misrepresentation by parties to an investment agreement, fraud, or unexpected changes in the financial market place. 4. State of California Government Code Sections 53600 et seq. 53683 and 16429.1 regulate the deposit/investment activities of general law cities. See Sec. 53635 and 16429.1. Based upon the relatively small size of the City's portfolio, the City does not utilize a professional investment manager. Rather, Arroyo Grande's investment program is simply a part of the City's financial management activity. 5. The Director of Financial Services (and any delegate) shall use good judgement and care, as a "prudent person" would, when entering contracts for deposits and investments, and when placing individual investment transactions. Such care is that which would be exercised by a person concerning his/her own affairs; not for speculation, but for safe investment and earned interest. Some level of risk is present in any investment transaction, however. Losses could be incurred due to market price changes, technical cash flow complications such as the need to withdraw a non-negotiable Time Certificate of Deposit early, or even the default of an issuer. To minimize such risks, diversification of the investment portfolio by institution and by investment instruments will be used as much as is practical and prudent. Portfolio Diversification: 1. Eligible Financial Institutions: Government Code Section 53635 distinguishes between "deposits" and "investments". It provides that "as far as possible" City monies shall be "deposited" in State or National banks, or State or Federal savings and loan associations; Q! may be "invested" in specified instruments. Thus, eligible financial institutions would include: 2 A. Banks plus savings and loans, primarily for active demand deposits (checking accounts and passbook savings) and inactive deposits (non-negotiable Time Certificates), also for investment instruments. See Government Code Sec. 53638 for maximwn deposit limitations for banks and savings and loans, involving bank paid up capital and saving and loan net worth. B. Brokers and issuers, for various investment instruments listed below. 2. Code Authorized Instruments and Portfolio Limitations: A. Instruments and Portfolio Limitations are authorized as provided in Government Code Section 53635 and 16429.1, as follows: 1) Bonds issued by the City of Arroyo Grande. No limit. 2) U.S. Treasury Notes, bonds, bills, or other certificates of indebtedness. No limit. 3) California State registered notes, bonds, or warrants. No limit. 4) Other local agencies within California, bonds, notes, warrants, or other indebtedness. No limit. 5) Bank issued obligations for Federal agencies as the Government National Mortgage Association (GNMA'S), the Federal National Mortgage Association (FNMA'S), and the Small Business Administration (SBA notes), etc. No.limit. 6) Banker's acceptances (bills of exchange or time drafts) drawn on and accepted by a commercial bank, and which are eligible for purchase by the Federal Reserve System. These are limited to 30 percent of the City's surplus funds, and limited to 180-day maximwn maturities. 7) Commercial paper of "prime" quality, as rated by Moody's Investor Service or Standard and Poor's Corporation. These are limited to 15 percent of the City's portfolio, and limited to 270-day maximwn maturities, plus some other qualifications. 8) Negotiable Certificates of Deposit, issued by either a National or State bank or savings and loan. These are limited to 30 percent of the City's available reserves. 9) Repurchase agreements or reverse repurchase agreements, whereby the seller of securities will repurchase them on a specified date and for a specified amount. 3 - --~~._.,.-._..._- 10) Local Agency Investment Fund, State of California, per Government Code Sec. 16429.1. Pooled monies of various agencies within California. Limit of $20,000,000 account balance. Citv Placement Practice: 1. The following financial institutions will be used by the City of Arroyo Grande, for non- negotiable Time Certificates of Deposit: . a) Commercial banks having offices in Santa Barbara and San Luis Obispo Counties, especially in the Five Cities area. b) Savings and loans maintaining offices in San Luis Obispo County, especially in the Five Cities area. 2. The State of California Local Agency Investment Fund (L.A.I.F.) will be utilized, to pool current surplus City monies for demand deposit earnings. 3. For other investment instruments, three institutions may be selected from a list of qualified primary dealers in government securities, which maintain offices in the State of California. 4. Prior to establishing a contract for deposit of monies per Sec. 53649, or placing an individual investment, the credit-worthiness of each financial institution will be detennined. As a minimum, the ratio of net worth (equity) to total assets shall be 3.0% or more. 5. No more than 30% of the City's available surplus shall be placed with anyone financial institution (excluding the State L.A.I.F. and government agency issues). 6. No more than 50% of the City's available surplus shall be placed with savings and loan institutions. 7. The City, as authorized in Government Code Sections 53635 and 16429.1, may use all deposit and investment instruments; except repurchase and reverse repurchase agreements shall not be used. However, non-negotiable time certificates with commercial banks and savings and loans, plus deposits in the State Local Agency Investment Fund, will be the primary instruments used by the City, along with possible U.S. Treasury bills and bankers acceptances. 8. Collateral security on Certificates of Deposit will be provide in according to Government Code Sections 53651and 53653 by the commercial banks and savings and loans, at 110% when government securities are used, or at 150% when promissory notes secured by 1 st mortgages or 1 st trust deeds on improved residential real property located in California are used. 4 . 6. Current market value for all securities having a maturity of more than 12 months. 7. Detail of investments in repurchase and reverse repurchase agreements. 8. Relationship of the monthly report to the annual statement of investment policy. The City of Arroyo Grande shall review and present to the City Council, pursuant to the temporary text of Government Code Section 53646: 1. The current investment policy with technical updates each year. This policy generally will remain in force unchanged, unless significant requirements arise necessitating change. 2. ~onthly reports of investments held on the last day of each month. The City's independent certified public accountant shall review and make recommendations, when appropriate, regarding the City of Arroyo Grande's investment policy. 6 ---,---- --,--..-.-.---------- I.d. MINUTES SPECIAL MEETING OF THE CITY COUNCIL TUESDAY, MARCH 23, 2004 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1, SPECIAL CITY COUNCIL MEETING: Mayor Ferrara called the meeting to order at 6:31 p.m. Council Members Runels, Dickens, Lubin and Costello, Community Development Director Strong, City Manager Adams, and City Attorney Carmel were present. 2, PUBLIC COMMENT: None. , .~ . '" ; '".;. 3. CITY COUNCIL CLOSED SESSION: a, CONFERENCE WITH REAL PROPERTY NEGOTIATOR pursuant to Government Code Section 54956.8: Property: APN: 007-192-038; Vacant Lot - 210 Le Point Street Agency Negotiator: Steven Adams. City Manager Negotiating Party: Dorfman Homes, Inc., a CA Corp. Under Negotiation: Price, Terms and Conditions of Potential Purchase 4, RECONVENE TO OPEN SESSION: Mayor Ferrara announced that there was n~ r:~portable action from the closed session. " 5, ADJOURNMENT TO REGULAR CITY COUNCIL MEETING: The meeting was adjourned at 7:02 p.m. Tony M, Ferrara, Mayor ATTEST: Kelly Wetmore, Director of Administrative Servicesl Deputy City Clerk ~;.1 - --- --- MINUTES REGULAR MEETING OF THE CITY COUNCIL TUESDAY, MARCH 23, 2004 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1, CALL TO ORDER Mayor Ferrara called the Regular City Council meeting to order at 7:05 p.m. 2, ROLL CALL City Council: Council Members Runels, Dickens, Costello, Mayor Pro Tem Lubin, and Mayor Ferrara were present. City Staff Present: City Manager Adams, City Attorney Carmel, Director of Administrative Services Wetmore, Financial Services Director Snodgrass, Director of Public Works Spagnolo, Community Development Director Strong, Associate Planner Heffemon, Contract Planner McClish, and Assistant Planner Bergman. 3, FLAG SALUTE Alvin Evenson and Dean Castellino, representing American Legion Post No. 136, led the Flag Salute. 4,INVOCATION Jean Bowser, Bahai Faith, delivered the invocation. 5, SPECIAL PRESENTATIONS 5,a, Mayor's Commendation Recognizing. Khatchlk "Katcho" AchadJlan, County Supervisor - District 4 for Contribution Received for the Village Sbeetllght "Let There Be Lights" Program, Mayor Ferrara presented a Mayor's Commendation to Khatchik "Katcho" Achadjian, County Supervisor - District 4, in recognition of his generous contribution for the Village Streetlight "Let There Be Lights" Program. 5.b, Honorarv Proclamation RecoGnizinG ADrll 2004 as the "Month of the Child" Mayor Ferrara presented an Honorary Proclamation to Monica Goldberg, representing San Luis Obispo Child Care Planning Council, recognizing April 2004 as "Month of the Child". 6, AGENDA REVIEW 6,a, Resolutions and Ordinances Read In Title Only Council Member Dickens 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. ----- CITY COUNCIL MINUTES MARCH 23, 2004 PAGE 2 8, CONSENT AGENDA Mayor Pro Tem Lubin moved, and Council Member Dickens seconded the motion to approve Consent Agenda Items 8.a. through 8.L, with the recommended courses of action. The motion carried on the following roll-call vote: AYES: Lubin, Dickens, Runels, Costello, Ferrara NOES: None ABSENT: None 8,a, Cash Disbursement Ratification. Action: Approved the listings of cash disbursements for the period March 1, 2004 - March 15, 2004. 8,b, Consideration of Cash Flow Analysis/Approval of Interfund Advance from the Water Facility Fund, Action: Received and filed the February 2004 cash report and approve the interfund advance from the Water Facility Fund to cover cash deficits in other funds at February 29,2004. 8,c, Consideration of Approval of Minutes, Action: Approved the minutes of the Special City Council Meeting and Regular City CounciVRedevelopment Agency Meeting of March 9, 2004 as submitted. 8,d, Rejection of Claim Against City - L, Byrd. Action: Rejected claim. 8,e, Consideration of Request to Refund Application Fee for Drlve-Thru Girl Scout Cookie Sale In the Parking Lot at 1200 E, Grand Avenue, Action: Approved the request from the Girl Scouts of Tres Condados to refund the application fee for TUP 04-004. 8,f, Consideration of an Award of Contract to Senna Tree Company for Relocation of a Coastal Live Oak Tree for the Reservoir No.1 Replacement Project, PW 2003-07, Action: 1) Awarded a construction contract for the relocation of a Coastal Live Oak Tree located at the site of the Reservoir No. 1 Replacement Project to Senna Company in the amount of $14,200.00; 2) Authorized the City Manager to approve change orders not to exceed the contingency of $1,420.00 for use only if needed for unanticipated costs during the construction phase of the project; and, 3) Directed staff to issue the Notice of Award and Notice to Proceed with other necessary contract documents. 8,g, Consideration of a Request for Contract Relief by SLO Plumbing and an Award of Contract to Mid State Plumbing for Phase I of the Water Conservation Pro,gram, Action: 1) Approved a request for contract relief by SLO Plumbing; 2) Awarded a contract for Phase I of the Water Conservation Program to Mid State Plumbing in the amount of $348,665.00; 3) Appropriated an additional $73,150.00 from the Water Neutralization Impact Fund; and 4) Directed staff to issue the Notice of Award and Notice to Proceed with other necessary contract.documents. 8,h, Consideration to Appropriate Additional Funds for Design Service Contract on the Fire Station Expansion Project, PW 2003-05, Action: Appropriated $13,000. from the Fire Facilities fund for reimbursable and construction administration expenses incurred by the project architect, RRM Design Group. CITY COUNCIL MINUTES MARCH 23, 2004 PAGE 3 8,1, Consideration of Authorization of City Manager to Approve and Execute Necessary Documents Related to Affordable Housing Unit at 266 Aspen Street Consistent with the Current Deed Restrictions, Action: Authorized the City Manager to approve and execute additional documents determined to be necessary, modifications to existing documents, and to .take other . necessa ry actions related to the affordable housing unit at 266 Aspen Street consistent with the terms and conditions of the current deed restrictions. 9, PUBLIC HEARING: 9,a, Consideration of General Plan Amendment Case 03-003 (Aarlcultural. Resources) Contract Planner McClish presented the staff report and recommended the Council approve the Negative Declaration and adopt a Resolution approving General Plan Amendment 03-003 amending the Agricultural, Conservation and Open Space Element to revise language in Objective Ag1 relating. to conversion of prime agriculture land; Policy Ag3-11 relating to farm worker housing; and policies and implementation measures for Ag1-3, Ag3-5, and Ag3-6 for language relating to agricultural conservation easement programs. Assistant Planner Bergman gave an overview of the agricultural enterprise programs. Staff responded to questions from Council regarding farm worker housing. Mayor Ferrara opened the public hearing. Otis Pace, Arroyo Grande, spoke about the agricultural policy revisions and inquired if the policies were going to be selectively applied to agricultural properties in the City. Chuck Fellows, Arroyo Grande, spoke in support of ag-tourism and the agriculture conservation easement and agriculture enterprise programs. Bill McCann, Arroyo Grande, spoke in support of the agriculture conservation easement and agriculture enterprise programs. Ella Honevcutt, Arroyo Grande, spoke in support of the agricultural conservation easement and agriculture enterprise programs. Lerov Saruwatari, Arroyo Grande, thanked the Council for supporting agriculture operations. Hearing no further public comments, Mayor Ferrara closed the public hearing. Council Member Costello supported the recommendation to remove the. word "minimize" from Agriculture, Conservation and Open Space Element Objective Ag 1; supported the proposed Agricultural Conservation Easement Program; supported the Agricultural Support and Enterprise Programs; and supported the proposed language amendments relating to farm worker housing. Council Member Runels did not support the proposed General Plan Amendment indicating it diminished the rights of affected property owners to use their land in the way they choose. He cited the Williamson Act as an available option for property owners and stated that to his knowledge, only one property in the City had taken advantage of this option. He also commented that small farm owners within the City could not afford to build and maintain farm worker housing. Council Member Dickens supported the elimination of the word "minimize" from Agriculture, Conservation and Open Space Element Objective Ag1; supported the development of an CITY COUNCIL MINUTES MARCH 23, 2004 PAGE 4 Agricultural Conservation Easement Program; supported modifying the language for farm worker housing to be consistent with the Housing Element; and supported the Agricultural Support and Enterprise Programs. Mayor Pro Tem Lubin supported the Agricultural Support and Enterprise Programs; expressed some concerns regarding farm worker housing; expressed concems with removing the word "minimize" out of Objective Ag1; and stated that he could support some components of the proposal being presented for approval. Mayor Ferrara supported the Agricultural Support and Enterprise Programs; supported the proposed revision of Objective Ag1 to remove the word "minimize"; expressed concems regarding the provisions for farm worker housing and stated that this issue needed to be more clearly defined; and supported the Agriculture Conservation Easement Program. Council Member Dickens moved to adopt a Resolution as follows: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING GENERAL PLAN AMENDMENT 03-003 TO AMEND THE AGRICULTURAL, CONSERVATION AND OPEN SPACE ELEMENT REVISING OBJECTIVE AG1 RELATING TO CONVERSION OF PRIME AGRICULTURAL LAND; POLICY AG3-11 RELATING TO FARMWORKER HOUSING; AND POLICIES AND IMPLEMENTATION MEASURES FOR AG1-3, AG3-5, AND AG3-6 RELATING TO AGRICULTURAL CONSERVATION EASEMENT PROGRAMS". Council Member Costello seconded the motion. City Attorney Carmel asked for clarification whether the motion included the approval of the Negative Declaration. Council Member Dickens said yes and amended his motion to adopt the Resolution, as amended, to include the approval of the Negative Declaration. Council Member Costello seconded, and on the following roll-call vote: AYES: Dickens, Costello, Ferrara NOES: Runels, Lubin ABSENT: None There being 3 A YES and 2 NOES, the motion is hereby declared to be passed. 10. CONTINUED BUSINESS None. 11. NEW BUSINESS 11,a, Consideration of Pre-Application Review Case No. 04-004; Proposed Residential Subdivision and Neighborhood Plan; East Cherry Avenue and Myrtle Street; Applicant - Damlen Mavis, Creekside Estates of Arroyo Grande, LLC Council Member Dickens declared an indirect conflict of interest due to his beneficial interest in real property located near the proposed project and stepped down from the dais. Community Development Director Strong declared a conflict of interest due to an option to purchase a portion of the property that is the subject of this proposal and stated he had not and would not be participating in the processing of this application. He stepped down from the staff table. ---------- ------------------ ---~-- CITY COUNCIL MINUTES MARCH 23, 2004 PAGE 5 Associate Planner Heffernon presented the staff report and recommended the Council review the project and provide direction and comments to the applicant. Mayor Ferrara invited the applicant to the podium to address the Council. Fred Bauer, Arroyo Grande, gave an overview of how the project started, discussed ideas for smart growth, explained the efforts made to involve the neighborhood to obtain feedback on proposed development of the property. Eric Justesson, RRM Design Group, spoke on behalf of the applicant, and .gave an overview of a proposed development layout for the property based on the General Plan designation of Neighborhood Plan with medium density. He stated that some of the issues to be addressed as part of the. project would be drainage, balanced access to the property from E. Cherry and Myrtle, lot sizes, street widths, a pocket park, access to the creek, respecting the agriculture property to the south, inclusionary housing, and architectural style. Mayor Ferrara invited other members of the public to comment. Carol Hoffmever, representing the Dixson Family Trust, read a letter into the record which requested the Council consider increased bUffer distances, increased depth of landscaping; an 8-foot high block wall and a "no-climb" wood fence on the property line; cooperative improvement of the existing 15-foot private driveway; ensuring that prospective property owners are informed of the Right-to-Farm ordinance; investigating the potential for a detention, retention, and/or recharge basin within the proposed project; and ensuring that the drainage deficiencies are resolved. Chuck Fellows, Arroyo Grande, favored a pedestrian bridge across the creek to provide safety for children, Otis Paae, Arroyo Grande, expressed disappointment that the neighborhood was not specifically noticed for this item tonight. He commented that there was no proposal from the applicant for a park or a bridge. He also commented on existing drainage issues and felt that the neighborhood objects to the high density being proposed. He stated that he has no objections to development; however, he had a problem with developing prime agriculture land. Lvnn Titus, Arroyo Grande, expressed concern with the proposed density and commented that the acreage f.gure was incorrect. She inquired whether anyone had talked to the Lucia. Mar Unified School District regarding a bridge and said she did not think they would like it. She asked who would develop and maintain the park, stated there was a lot of poison oak in the area, and inquired whether E. Cherry Avenue would be extended~ Jim Guthrie, Arroyo Grande, requested feedback from the Council on the concept of clustering. He also asked how the required agriculture buffer distance would be analyzed and determined. Bill McCann, Arroyo Grande, expressed concerned regarding the buffer zone and stated he was not sure that 100 feet would be enough. He proposed a minimum 150 foot buffer. He also expressed concems about drainage. Wayne Kina encouraged the Council to review the comments made regarding the Vanderveen project. Larrv Tumer, Arroyo Grande, spoke about drainage and stated he needed assurance that drainage will be addressed properly. . He stated that the temporary ditch has stopped the problems. He supported development of the property; however, he would not support two-story homes against Noguera Street. CITY COUNCIL MINUTES MARCH 23, 2004 PAGE 6 Lerov Saruwatari, Arroyo Grande, expressed concems about the buffer zone and stated that the County imposes 300 feet. He stated that there should be a minimum 150-foot buffer. He also said that the City's Right-to-Farm Ordinance should be disclosed to potential property owners. Ella Honevcutt, Arroyo Grande, stated that buffer zones are there to make good neighbors and urged the Council to ensure that the buffer zone is adequate to protect the homes and the farmers. Hearing no further public comments, Mayor Ferrara closed the public comment period. Council Member Runels stated that the drainage problem must be addressed first and foremost; he would prefer to see larger lots with less density; did not favor two-story homes; stated that a 100-foot buffer was sufficient; and commented that the Dixson Ranch. would have to assume some of the mitigation. He did not support the type of large walls being requested by the Dixson Ranch. Council Member Costello commented on the need to resolve the drainage issue; encouraged the applicant to seek feedback from the Lucia Mar School District regarding the bridge and access issues; supported the concept of smaller lots; liked inclusion of the Village Design Guidelines and Standards; commented that there would be a need to carefully review the buffer zone requirement; and stated that the concerns in the Dixson letter were valid. Mayor Pro Tem Lubin inquired who would build and maintain the bridge and the park; requested clarification on plan #4; asked for clarification on the exact acreage of the property; stated that traffic issues are significant and inquired whether the E. Cherry extension would remain as a dirt road or be paved; favored smaller lots to meet housing goals; expressed concems regarding the buffer zone distance; commented that the drainage problem must be solved; agreed that no two- story homes should be built on the Noguera Street side; agreed that new property owners need to be informed about the City's Right-to-Farm Ordinance; commented that public comments about the parcel being prime agriculture land needed to be addressed; and commented that some of the ideas outlined in the Dixson letter were good; however, he felt that if they desired a no-climb wood fence, it should be built on their property. Mayor Ferrara emphasized the concept of a Neighborhood Plan and commented that the Plan was partly driven by the drainage problem from Newsom Springs. He stated that drainage is the first and foremost concem and that there is a need for additional engineering on a catch basin, a pipe, or a combination of both. He commented on the need for an adequate size buffer zone; addressed the density issue and the need for affordable housing; and favored inclusionary housing in the project. He agreed that the design and placement of any two-story homes needed to be considered to accommodate neighborhood privacy. He liked the idea of a bridge but expressed the need to get feedback from Lucia Mar School District; expressed concern regarding pedestrian traffic, however, the benefits of a bridge may outweigh other problems. He favored the development of a pocket park to be maintained by a homeowners association. Mayor Ferrara commented that buffer zones need to be analyzed on a case-by-case basis; and there is a need to look at unique site factors to determine adequate buffer size. He requested additional review of the concept drawings submitted by the Dixson Ranch. He commented that the buffer zone requirement may set a precedent for future development. Upon conclusion of Council comments, Mayor Ferrara ensured that the applicant had received sufficient feedback and direction with regard to the proposed project. CITY COUNCIL MINUTES MARCH 23, 2004 PAGE 7 There was no action taken on this item. Council Member Dickens returned to the dais. 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), Meeting was cancelled; no report. (2) Integrated Waste Management Authority (IWMA). Reported that the County JPA met and is maintaining its diversion rate (currently at 51%); gave a status report on increased tonnage going into the Cold Canyon Landfill due to weighing of vehicles versus estimating the weight. Additionally, there is more activity in construction and demolition waste; more cities need to pass ordinances similar to those in Arroyo Grande, Morro Bay and San Luis Obispo. (3) Other. None. b, MAYOR PRO TEM SANDY LUBIN: (1) South County Area Transit (SCAT). No report. (2) Economic Vitality Corporation (EVC). Reported that the EVC will host a Smart Cities Workshop to explore ways to increase county e-commerce activity and encouraged staff members to attend. (3) Other. Received CJPIA reports; provided to staff for making copies to the Council. c, COUNCIL MEMBER THOMAS A. RUNELS: (1) Zone 3 Water Advisory Board. Everything is functioning properly at the Dam following fix of broken Lopez line at the bottom of Tally Ho Creek. The Habitat Conservation Plan has b~en submitted to the Board of Supervisors and released for public review and comment. (2) County Water Resources Advisory Committee (WRAC). No report. . (3) Other. None. d, COUNCIL MEMBER JIM DICKENS: (1) South County Youth Coalition. Announced that 40-50 local students from South County would be participating in the Annual Asset Development Conference Summit 3 on March 26 & 27 in Sa~. Luis Obispo; Jack Smith gave a presentation on the newly formed South County Education Foundation. a private non-profit organization. whose goal is to raise funds to supplement the educational needs of youth in the South County. (2) South San Luis Obispo County Sanitation District (SSLOCSD). The District conducted video inspection of approximately 70% of the sewer $ystem in an attempt to obtain a baseline and create a capital improvement and master plan; Reported on an issued regarding the Bakeman Lane Trunk System which is not adequate to meet the sewer capacity need for development already approved in the City. (3) Other. None. e, COUNCIL MEMBER JOE COSTELLO: (1) Air Pollution Control District (APCD). None. (2) Other. None. CITY COUNCIL MINUTES MARCH 23, 2004 PAGE 8 13, CITY COUNCIL MEMBER ITEMS: a) Request of Council to Appeal Plot Plan Review Case No. 04-002; Applicant - Tried and True Tattoo; Location -1037 E. Grand Avenue. (FERRARA) Upon a request by Mayor Ferrara, there was consensus of the Council to place an appeal of Plot Plan Review Case 04-002 on a future City Council agenda for consideration. 14, CITY MANAGER ITEMS: None. 15, COUNCIL COMMUNICATIONS: Council Member Runels requested consideration of establishing a JPA to manage the Lopez Dam operation. 16, STAFF COMMUNICATIONS: City Manager Adams announced the following public workshops: City Hall Complex Feasibility Study and Needs Assessment Workshop, March 25th, 6:30 p.m. in the Council Chambers, 215 E. Branch Street; and a workshop on potential future land uses in the City's Sphere of Influence, March 30th, 6:30 p.m. at the City of Arroyo Grande and Woman's Club Community Center, 211 Vemon Street. 17, COMMUNITY COMMENTS AND SUGGESTIONS: None. 18, ADJOURNMENT Mayor Ferrara adjoumed the meeting at 9:35 p.m. Tony M. Ferrara, Mayor ATTEST: Kelly Wetmore, Director of Administrative Servicesl Deputy City Clerk (Approved at CC Mtg ) -------.------- - .. - ---------- ~._._._--. ---..-------.--- , 8.e. MEMORANDUM TO: CITY COUNCIL TERRY FIBICH, DIRECTOR OF BUILDING AND @ FROM: SUBJECT: CONSIDERATION OF AUTHORIZATION TO AWARD BID FOR FURNITURE FOR THE FIRE STATION EXPANSION DATE: APRIL 13, 2004 RECOMMENDATION: It is recommended the City Council authorize the award of bid to Tri County Office Furniture for furniture for the Fire Station dormitory rooms, training room, conference room, and offices in the amount of $30,448. FUNDING: On November 7, 2002, the voters of the City of Arroyo Grande approved Measure 0-02, a General Obligation Bond measure, providing $1.9 million for the expansion and update of the City's Fire Station. The proceeds of that bond measure, as well as funds from the City's Fire Impact Fees are being used to fund the construction and furnishing of this expansion. DISCUSSION: The construction of the Fire Station Expansion Project is nearing completion. Because of extended delivery times, furniture and furnishings need to be ordered in a timely manner to allow delivery to coincide with the completion. On March 15, 2004, proposals were received from three (3) furniture companies: Tri County Office Furniture, Office Depot, and Russco. These companies and their proposed costs are as follows: TRI COUNTY OFFICE FURNITURE $30,448 OFFICE DEPOT $31,803 RUSSCO $37,969 The recommendation to select Tri County Office Furniture was based upon the lowest bid for the specified furniture. CITY COUNCIL AWARD OF BID-FIRE STATION FURNITURE APRIL 13, 2004 PAGE 2 AL TERNA TIVES: The following alternatives are provided for the Council's consideration: . Approve staffs recommendation for award of bid; . Do not approve staffs recommendation; . Modify bid items as appropriate and approve staffs recommendation; . Provide direction to staff. 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MEMORANDUM TO: CITY COUNCIL FROM: DON SPAGNOLO, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER ~ SUBJECT: CONSIDERATION OF AN AWARD OF CONTRACT TO PAPICH CONSTRUCTION COMPANY FOR CONSTRUCTION OF THE RESERVOIR NO, 1 REPLACEMENT PROJECT, PW 2003-07 DATE: APRIL 13, 2004 RECOMMENDATION: It is recommended the City Council: A. award a contract for the construction of the Reservoir No, 1 Replacement Project to Papich Construction Company, in the amount of $1,850,910; and, B. authorize the City Manager to approve change orders not to exceed the contingency of $185,090 for use only if needed for unanticipated costs during the construction phase of the project (total construction costs = $1,850,910 + $185,090 = $2,036,000); and, C. direct staff to issue the Notice of Award and Notice to Proceed with other necessary contract documents; and, D. appropriate $780,000 from the Water Facilities Fund and $420,000 from the Water Fund. FUNDING: The FY 2003/04 Capital Improvement Program budget includes $2,252,100 for the Reservoir No.1 Replacement Project. The original project budget assumed a $1.2 million State grant, which is no longer expected. However, staff has determined that sufficient funds exist in the Water Facility Fund and the Water Fund to proceed with the project. An additional appropriation of $780,000 from the Water Facility Fund (65%) and $420,000 from the Water Fund (35%) is requested to be transferred to provide for the total project costs. ----~_.- ----...--..- - -...---..-- , CITY COUNCIL . CONSIDERATION OF AN AWARD OF CONTRACT FOR RESERVOIR NO, 1 REPLACEMENT PROJECT, PW 2003-07 APRIL 13, 2004 PAGE 2 DISCUSSION: On February 10, 2004, the City Council directed staff to solicit bids for the Reservoir No.1 Replacement Project. On March 30, 2004, seven bids were publicly opened for the project. The lowest responsive bidder, Papich Construction Company, submitted a bid of $1,850,910. The bid has been verified and found to be in compliance with the contract specifications. The Reservoir No. 1 Replacement Project includes the demolition and removal of the existing 780,000 gallon concrete water reservoir built in 1929, and the excavation and construction of a new 2,000,000 gallon pre-stressed concrete water reservoir. The project scope of work also includes the installation of a new water line, drainage facilities, all weather access road (Reservoir Road), fencing, trees. for screening the above ground . portion of the reservoir, and associated appurtenances. All proposed facilities are on City- owned property, public right-of-way or dedicated easement. The contract time for this project is specified at 255 calendar days. Work is expected to begin in early May 2004 and be completed by the end of January 2005. ALTERNATIVES: The following alternatives are provided for the Council's consideration: . Approve staffs recommendations; . Do not approve staffs recommendations; . Modify as appropriate and approve staffs recommendations; or . Provide direction to staff. Attachments: 1. Bid Opening Log Sheet -_.__.~._--~_._- ---.-..-- , , BID OPENING LOG SHEET CITY OF ARROYO GRANDE BID OPENING: March 30, 2004 Reservoir No, 1 Replacement Project Engineer's Estimate $2,400,000.00 BIDDER'S NAME. CITY -. TOTAL Papich Construction, $1,850,910.00 Arroyo Grande Spiess Construction, $2,200,720.00 Santa Maria MGE Underground Inc., $2,550,448,00 Paso Robles John Madonna Construction, $2,516,960.00 San Luis Obispo Whitaker Contractors, $2,226,266,00 . Santa Margarita Wysong Construction, $2,214,991,00 Atascadero Specialty Construction, $2,570,350.00 San Luis Obispo ~ tM</twJ/U- Kelly Wet on! Director of Administrative ServiceslDeputy City Clerk c: Director of Public Works City Manager 8_g_ MEMORANDUM TO: CITY COUNCIL P FROM: ROB STRONG, COMMUNITY DEVELOPMENT DIRECTOR SUBJECT: CONSIDERATION OF OFFER OF GRANT DEED FROM ESPINOZA FAMILY TRUST, ET AL, (PORTION OF APN 007-791-005), 433 CARPENTER CANYON ROAD, STATE HIGHWAY ROUTE 227 - NORTH EDGE OF CITY DATE: APRIL 13, 2004 RECOMMENDATION: It is recommended the City Council accept the offer of the portion of the Espinoza Family Trust property within the City and authorize the City Manager to record the grant deed. FUNDING: The offer of grant deed is a gift that does not require purchase or compensation. The potential expense of entry sign or landscape/openspace maintenance is dependent on the extent that the City Council decides to improve the vacant land. Otherwise, it is similar to maintenance of City right-of-way adjoining most roadways. DISCUSSION: Several months ago the County Planning Department advised the City Community Development Department that a parcel map for Residential Suburban subdivision had been received that included a small portion of the site within the City. This would require consideration by both the County and the City unless the small part in the City was deeded to the City. The owner's surveyor, Tom Vaughan of Vaughan Surveys Inc., met with Community Development Department staff and offered to prepare a grant deed to gift to the City to avoid duplicative processing. The County would then be able to process a conforming parcel map for lot line adjustment or subdivision into 2 % acre homesites. The City will receive normal County referral of this Parcel Map and prepare comments on it if and when the proposal is reviewed. One possible use for this small triangle on the east side of Highway 227 at the north edge of the City limits would be an entry sign. and landscaped open space. ______n______ _ ______ -_._----_.~ CITY COUNCIL CONSIDERATION OF OFFER OF GRANT DEED FROM ESPINOZA FAMILY TRUST, ET AL, (PORTION OF APN 007-791-005), 433 CARPENTER CANYON ROAD, STATE HIGHWAY ROUTE 227 - NORTH EDGE OF CITY APRIL 13, 2004 PAGE 2 ALTERNATIVES: The following alternatives are provided for the Council's consideration: - Accept offer of grant deed and authorize City Manager to record. - Reject offer and advise County that City prefers to co-consider proposed Parcel Map/Subdivision. - Provide other direction to owner and staff regarding possible use of portion within the City. Attachments: 1. OWner Request letter 2. Map of Property Location 3. Grant Deed .---_.-._--------~-~_.._.,..--_.__._-~-- ----~-- MR. & MRS. J. ESPINOZA A TT ACHMENT 1 210 Montecito Avenue Shell Beach, CA 93449 City of Arroyo Grande P. O. Box 550 Arroyo Grande, CA 93421 Attention: Mr. Rob Strong Planning Director March 5, 2004 Dear Sir: RE: 433 Carpenter Canyon, Arroyo Grande, CA Enclosed are a fully executed deed and a preliminary title report for small portion of our property that is within the City limits. We would like to gift that small portion to the City as it creates a jurisdictional problem in dealing with the County of San Luis Obispo on our lot line adjustment. Once the City approves the gift we agree to pay for a title insurance policy and will pay to have it surveyed. iT I 11 Respectfully submitted, Ii! I ~ ~ I Jess Espinoza I --~ -------_._~-- Mar 25 2004 14:49 VAUGHAN SURVEYS 805; A TT ACHMENT 2 "'-. I"~ 1- 1'7": :c: - "', ~ , ~/ to ~ cu< ~ ~ CCz I'" .s;4.0~ ~ It. C , ~'In 0 ..J(:c ""ii!= ~. -,0-, rtP 1&.1 C & %~U U:) , ~-' z 0( II) i ," '" , t i w I I CITY OF ARROYO GRANDE I I I :a- ., ..I :: . I :; ~. I 'II g: I . tlO~~ '" o;,J . U II. ;a tit . !! : iPi ~\; .., I .....01t "... .. .. "" .,- :::il9~a t-"'iI",o ...... I ai2"~ ~ r:!' z"tLCIlt & '; .... v i= ~ -I ~~ .;. ~. . lit .." N . , '. ~ .~ . G..... . " . c:a It: COUNIT ~ ~ 4Q ~,!, ~"'" 01 .$ .:(;)~ : ~' ..... u · .c t Q ..... It: . '....., II. J: i '" Ii ~ " . ~ ~,. "UI ...,~ ... s~~~... os. .... z I ~~" ~ ~,- u 'oi:~W'> ..~ .... - 2 i 0 · i i e . D~. - C" "".) .., ~ ..&'.... " " 0 ..,.. .'1. ..5 "N " (f(') ') .. \::"J t ~ 10 , ~ '800:j,l.'i=-l-.o. ~E~ ....~ 'OcIsjqo .,", UItS - ----._.._~--_..- · Attachment 3 R[~ORDING REQUESTED BY: Fidelity National Title Company Es~rov.i No. 154581-KM Title Order No. 00154581 When Recorded Mail Document and Tax Statement To: City of Arroyo Grande GRANT DEED SPACE ABOVE THIS LINE FOR RECORDER'S USE The undersigned grantor(s) declare(s) Documentary transfer tax Is $ City Transfer Tax Is $ [ ] computed on full value of property conveyed, or [ ] computed on full value less value of liens or encumbrances remaining at time of sale, [ ] Unincorporated Area City of Arroyo Grande FOR A VALUABLE CONSIDERATION, receipt of which Is hereby acknowledged, Jess V. Espinoza and Bonnie Dee Espinoza, as Trustees of The Espinoza Family Trust dated March 23, 1996 and Dennis T. Allan and Margaret M. Allan, Husband and Wife, as Joint Tenants and F. Byron Grant, An Unmarried Man and Patricia M. Okura, an Unmarried Woman hereby GRANT(S) to The City of Arroyo Grande the following describe,d real property in the City of Arroyo Grande, County of San Luis Obispo, State of California: SEE EXHIBIT "A" ATIACHED HERETO AND MADE A PART HEREOF K. MOORE COMM. # 1440875 ~ NOTARY PUBlIC-cAlIFORNIA G) SAN LUIS OBISPO COUNJY 0 DA TED: COMM. EXP. OCT. 15. 2007 ~ Jess V. Espinoza and Bonnie Dee Espinoza, as Trustees of The Espinoza Family Trust dated March' 23, 1996 :r,"$1c,," personally known to me (or proved to me on the basi of satisfac1,9(J:. evidence) to be the person(s) who name(s) is/~ubscribed to the Wa:'t.. instrument and ~. Allan i acknowledgeCt to me that he/she he executed the l /!!l. ~ same in his/h /~ authorized ca . (jes), and that y ~ ~ __ by hiS/her:~SlgnatureIS) on the instrument the Margar M. Allan~ person(s), ~ entity upon behalf of which the r~ person(s) acted, executed the instrument. , ". ~ F. Byron rant Witness my hand and official seal.. (J~ .~ {)J. d< ,() A 'LA/ - M.A.-" Signature _, . r v.J,~ Patricia M. Okura .... \ MAIL TAX STATEMENTS AS DIRECTED ABOVE FD-213 (Rev 7/96) GRANT DEED , EXHIBIT A All that portion of Lot 25 of Subdivisions of a part of Lot 13 of Stratton's Survey of the Rancho Corral de Piedra, the property of H.A. Vachell, in the County of San Luis Obispo, State of California, according to map filed for record July 19, 1888 in Book B, Page 95, of Maps, in the office of the County Recorder of said County, lying East of the County Road, as said road was conveyed by Deed recorded in Book 54 of Official Records, Page 18, Records of said County. ; .- - STATEOF ~~ COUNTY OF ~ !auJ .~ O~0adYI before me, v.&m~ (Name, T e of Officer) personelly eppeere~. f~i.Vip J/f!li i),,~ [.'\fIn9DP:;1Y'(.(,~. ~r (lUlU! , " m" lI) personally kn n t me (or prnvAd tn m8 SA the basis of 5ati;::ofaGtor; e";idenee) to be the pers~ I I W ose nam re :!~:~~ to the within instrument and acknowledged to me that I1etshe he executed the same in h' hei authorized capaci~, and that by h~Signaturf({i)on the instrument the persor69, or the entity upon behalf of which the per so acted, executed the instrument. WITNESS my hand and official seal. , J. HARRIGAN r: COMM. , 1391711 Q OrARY PUBUC..cAI.fOiNIA SAN LUIS OBISPO COUNTYO COMM. EXP. DEC. 2", 2006 ..& (This area for notarial seal) 0" _ .- --- --,~_." -- ---- - ---'-,_.-- - 9.a. MEMORANDUM TO: CITY COUNCIL FROM: ROB STRONG, COMMUNITY DEVELOPMENT DIRECTO~ SUBJECT: PROPOSED WESTERN EXPANSION TO THE VILLAGE DOWNTOWN PARKING AND BUSINESS IMPROVEMENT AREA DATE: APRIL 13,2004 RECOMMENDATION: It is recommended that the City Council continue consideration of the proposed western expansion to the Village Downtown Parking and Business Improvement Area to a date uncertain. FUNDING: None required at this time. DISCUSSION: During the last two years the Downtown Parking Advisory Board (DPAB) has been considering Village Downtown Parking and Business Improvement Area expansion alternatives and proposals for add~ional public parking lot and circulation improvements. Specifically, in the last few months, in response to several pending development projects, the DPAB has considered priority expansion west of the VUlage Downtown Parking and Business Improvement Area to Traffic Way and Wesley Street to encompass the Village Center, PurvislKorn and Lambert properties on the north side of West Branch Street, and Robasciotti, Anderson/Clark and other properties on the south side of West Branch Street. Additionally, a possible Le Point Street extension between Wesley and Nevada Streets has been discussed at public hearings before the DPAB, the Traffic Commission and the Planning Commission. . (See Attachment 1, Notice and Map), The DPAB, Traffic Commission and Planning Commission public hearings during February and March 2004 concluded that further traffic, environmental and engineering cost studies should be completed before any decision is made regarding a potential public access easement along a Le Point Street alignment between Wesley and Nevada Streets. Property owners in the vicinity of Hart Lane, as well as segments of Le Point Street east of Nevada Street and Larchmont Drive west of Wesley Street, expressed concerns regarding excessive traffic that might "bypass" the Village using the Le Point Street alignment as a through route rather than local connection for customer parking, service and emergency vehicles. CITY COUNCIL PROPOSED WESTERN EXPANSION TO THE VILLAGE DOWNTOWN PARKING AND BUSINESS IMPROVEMENT AREA APRIL 13,2004 PAGE 2 While the DPAB and Planning Commission public hearings reveal support for the proposed western expansion to the Village Downtown Parking and Business Improvement Area ("PBIA"), there are several important prerequisites that need to be considered concurrently, including: . Settlement of 1970-80 parking "credits"; . Increase of parking in-lieu fees to reflect the current cost of land acquisition as well as improvements; . Amendments to Village Downtown Parking and Business Improvement Area parking exceptions for changes of use in existing buildings, outdoor dining areas and minor additions to existing buildings. Recognizing that Council consideration of the proposed expansion of the Village Downtown Parking and Business Improvement Area without addressing these issues would be premature, the DPAB and Planning Commission are recommending that the City Council continue the public hearing originally scheduled for April 13, 2004 to a date uncertain to allow staff time to complete research on these related issues. Necessary Development Code Amendments, as well as the specific proposed parking district expansion and annexation or reformation to the Village Downtown Parking and Business Improvement Area, will require future public hearing notification. Because there are several pending pre-applications which are dependent on the PBIA expansion, staff is pursuing these issues in a timely manner. AL TERNA TIVES: The following alternatives are provided for Council consideration: . Continue the western expansion of the PBIA to a date uncertain, . Discuss additional concerns and provide direction. to staff for further study prior to public hearings. Attachments: 1. Public Hearing Notice and Map --" . r' 'i .. A TT ACHMENT 1 - ., CITY OF ARROYO GRANDE NOTICE OF PUBLIC HEARINGS VILLAGE DOWNTOWN PARKING & BUSINESS IMPROVEMENT AREA, PROPOSED WESTERN EXPANSION & POSSIBLE LE POINT STREET EXTENSION' . ' ACCESS RECONSIDERATION, j During 2Q03, the City adopted new Development Code Amendments and Design Guidelines and. Standards for, the Village Downtown Core and Historic Character Overlay Districts, Additionally, the Village centre project,approved.by,Conditional Use Permit No. 98-567, was completed and a public access easement across the private parking lot has been offered to the City. This '24 foot wide public access easement would be the approximate alignment of a Le Point Street ex1ension between Nevada Street and Wesley Avenue which w~s addressed in 1986 by City Council Resolution No, '1984, that would be subject to reconsideration prior to easement acceptance by the City. . To obtain public and affected property owner comments and concerns prior to action, the City is scheduling the following Advisory Committee, Commission and Council Public Hearings in the Council Chambers,' 215 East Branch Street, Arroyo Grande: . Downtown Parking Advisory Board - Thursday, February 19, at 6:00 p,m, . Traffic Commission - Monday, March 15,2004 at 7:00 p,m, . Planning Commission - Tuesday, March 16,2004 at 6:00 p.m, . City Council - Tuesday, April 13, 2004 at 7:00 p,m, The City Council may amend or repeal Resolution No. 1984; accept, reject or receive and file the offer of public access easement; and consider westem expansion(s) of the existing Downtown Parking and Business Improvement District as generally depicted on the encloseq map of the Village area. More information and response to questions can be obtained during normal business hours (8:00 a.m. to 5:00 p.m. - Monday through Friday) at the Community Development Department, City Hall, 214 E. Branch Street, Arroyo. Grande. ' Written comments can be submitted prior to or at any of the above. Public Hearings or email: rstrong@arroyogrande.org. I \. 1 I - ~.~ -- ------..- -..---....-.- I 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 on TUESDAY, APRIL 13, 2004 at 7:00 P,M, in the City Council Chambers, 215 E. Branch Street, Arroyo Grande, to consider the following item: CASE NO: Revised Final Subsequent Environmental Impact Report (FSEIR) for Vesting Tentative Tract Map Case No. 01-001 and Planned Unit Development Case No. 01-001 (previously known as Tract 1998) APPLICANT: Castlerock Development, LLC PROPOSAL: The City Council will review the Revised FSEIR for a Tentative Tract Map and Planned Unit Development to subdivide approximately 26 acres for residential development. The project site is located in the Rancho Grande development, at the northeast intersection of James Way and La Canada. The Revised Draft SEIR was recirculated for a 60-day public review that began on December 1, 2003 and ended on January 29, 2004, to include additional project alternatives and to answer technical questions regarding biological resources on the site. The Revised FSEIR addresses the proposed project's . potential impacts on aesthetics/visual quality, air quality, biological resources, cultural and historical resources, geology and soils, hazardous materials, hydrology and water quality, land use, noise, public services and utilities, traffic and access, and water supply and wastewater. Any person affected or concerned by this proposal may submit written comments to the Community Development Department, 214 E. Branch Street, Arroyo Grande, Califomia, during normal business hourS(8:00':a~n'I..t6 5:00 p.m.) before the City Council hearing, or appear and be heard i!1 support of or opposition to the adequacy of the Revised FSEIR at the time of hearing. The Revised FSEIR is 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. ~ Director of Administrative Services/ Deputy City Clerk Publish 1T, Friday, April 2, 2004 ----- ----..-- _.__._~,_...- MEMORANDUM TO: CITY COUNCIL ROB STRONG, COMMUNITY DEVELOPMENT DIRECTO#S FROM: BY: TERESA MCCLISH, ASSOCIATE PLANNER SUBJECT: CONSIDERATION OF REVISED FINAL SUBSEQUENT ENVIRONMENTAL IMPACT .REPORT FOR VESTING TENTATIVE TRACT MAP 01-001 AND PLANNED UNIT DEVELOPMENT 01-001 (PREVIOUSLY KNOWN AS TRACT 1998) DATE: APRIL 13, 2004 RECOMMENDATION: Staff recommends that the City Council adopt the attached resolution to certify the Revised Final Subsequent Environmental Impact Report (SEIR) prepared for Vesting Tentative Tract Map 01-001 and Planned Unit Development 01-001 (the "project") as adequate and complete pursuant to the requirements of the California Environmental Quality Act (CEQA). FUNDING: No financial impact to the City. DISCUSSION: Proiect Description The 26.2-acre project site is located at the northeast corner of the intersection of James Way and La Canada in the Planned Development 1.2 Zoning district. The proposed project is a clustered subdivision consisting of 36-residential lots and one 16.5-acre open- space lot. The residential lots range from 5,500 sq. ft. to 29,825 sq. ft. in size, and are proposed to be clustered in the northwestern portion of the site. The site is bordered by residential development within Tract 1834 (The Highlands) . \IestIngTtlnt8llveTI1iCIMap + on the east and west, Tract 1994 (Los Robles) to andP.U.D. 01..001 the south, and large parcel residential lots within 8-- it ....- T!"'..... - . the Residential Estate district to the north. Backaround The City Council reviewed the Final SEIR on May 13, 2003 and requested recirculation of the document to include a project alternative requested by the applicant and additional -----~-----~_._._- ----_.._~- ---..-------- ---- CITY COUNCIL CON$IDERATION OF REVISED FINAL SUBSEQUENT ENVIRONMENTAL IMPACT REPORT FOR VESTING TENTATIVE TRACT MAP 01-001 AND PLANNED UNIT DEVELOPMENT 01-001 APRIL 13, 2004 PAGE 2 analysis for biological impacts to address issues raised by the Planning Commission and City Council (Attachment 1). The Revised Final SEIR includes: 1. The Pismo Clarkia Avoidance Alternative (updated Section 8.0 Alternatives). Additionally, in response to Comment Letter 5, includes analysis for variations of the Pismo Clarkia Avoidance Alternative; 2. Clarification of Biological Resources Analysis (updated Section 4.2, Biological Resources). 3. Responses to 23 comment letters received during the circulation of the Revised Draft SEIR. The original Final SEIR is incorporated by reference. Plannina Commission Recommendation On March 2, 2004, the Planning Commission conditionally recommended certification of the Revised Final SEIR based upon the following revised mitigation measures (Attachments 2 and 3): 1. Mitigation measure B-2(a) be revised to indicate a 50-foot setback from the top of creek bank to buffer wetland and riparian areas instead of a 25-foot setback which is listed in the Revised FSEIR. 2. Mitigation measure B-4(a) be revised to indicate a 50-foot setback from Pismo clarkia occurrences to buffer Pismo clarkia habitat instead of a 25-foot setback which is listed in the Revised FSEIR. It should be noted that the FSEIR concludes that even if all mitigation measures listed for Pismo clarkia were implemented, the impacts would not be reduced to a less than significant level and the impact is classified as Class I, significant and unavoidable. 3. Mitigation measure B-3(a) be revised to indicate an increase in the mitigation ratio for oak tree replacement. This mitigation measure requires a pre-construction survey and tree protection plan identifying and locating all affected Oak trees, and that the trees and Oak woodland habitat be avoided by adjusting or removing proposed lots to eliminate inclusion of oak trees. The mitigation measure stipulates that if the avoidance of oak trees is not feasible, the oak tree mitigation shall include replacement plantings at a more than 3: 1 ratio. 4. The mitigation-monitoring program should include a mechanism for long-term monitoring of mitigation related to biological impacts in addition to a Homeowner's Association. During previous Planning Commission hearings, (Attachment 4) the Commission cautioned that a HOA should not be relied upon to effect long-term habitat protection and indicated this as a basis for requiring the additional buffer distances (referring to public education programs and maintenance activities for HOAs as portions of recommended mitigation measures to protect riparian and Pismo clarkia habitat). In response, Rincon explained that there are both demonstrated successes and failures of long-term mitigation monitoring by HOA programs as evidenced for sites in other jurisdictions. For the subject site, which includes a rare and endangered plant species (Pismo clarkia), the HOA would be the _...~-------------~,-~------ .- CITY COUNCIL CONSIDERATION OF REVISED FINAL SUBSEQUENT ENVIRONMENTAL IMPACT REPORT FOR VESTING TENTATIVE TRACT MAP 01-001 AND PLANNED UNIT DEVELOPMENT 01-001 . APRIL 13, 2004 PAGE 3 revenue source for hiring a qualified biologist to monitor the effectiveness of mitigation measures over time. An alternative mitigation measure would include the combination of an HOA and the establishment of a maintenance district to fund and maintain long-term mitigation monitoring. Proiect Historv In 1978, the City approved Ordinance 186 C.S. approving the Planned Development 1.2 District for the Rancho Grande subdivision which, as amended, includes 44 acres of commercial area, Tracts 1132, 1994, 1997,1834, Parcels 10 and 11 on Noyes Road and the subject site. In September 1990, an application was submitted for a Development Plan and Tract Map 1998 for a clustered 40-unit subdivision which was suspended in 1991 when it was determined that a revised road and lot layout was required to address emergency access roads for both proposed Tract 1834 and Tract 1998. In 1998, an application for Tract 1998 was resubmitted and sUbsequently suspended in 1999 due to parallel access issues for Tracts 1834 and 1998. The table below summarizes the history for the project. Applicant submitted application for 40-lot clustered subdivision with an open space lot V1TMlPUD 01-001 March 12,2001 Pro.ect a lication deemed incom lete March 20, 2001 Staff Adviso Committee meetin May 18, 2001 Applicant submitted revised application for 36-lot clustered subdivision with an open s ace lot VTTM/PUD 01-001 June 14, 2001 Pro'ect a Jication deemed com late Au ust 8,2001 Notice of Pre aration for the r . SEIR August 21,2001 Planning Commission SCOpin9 meeting for SEIR November 5, 2001 Contract awarded to Rincon, Inc. March 26, 2002 Contract for SEIR si. ned A ril18, 2002 Kickoff meetin for SEIR November 13, 2002 Addendum to Contract signed to include additional study for slope stability, Ii uefaction and h drolo Februa 19,2003 Notice of Com letion Februa 21,2003 NOA Draft SEIR April 7, 2003 45-day review ends for public comment on the Draft SEIR A ril 25,2003 Distribution of the Final SEIR ---.---.....-..---.-------..---.-- -- n ~_ -_._.._---_._-~.----~--_._----_._---_._- - - -----_.__._-~--- CITY COUNCIL CONSIDERATION OF REVISED FINAL SUBSEQUENT ENVIRONMENTAL IMPACT REPORT FOR VESTING TENTATIVE TRACT MAP 01-001 AND PLANNED UNIT DEVELOPMENT 01-001 APRIL 13, 2004 PAGE 4 l'bI12:1E511"iIIM1P',U)()1..oiQ~iF'..()ji~I""imiliinl April 30, 2003 and May 7,2003 Planning Commission public hearings on the FSEIR May 13, 2003 City Council public hearing on the FSEIR City Council requests recirculation for applicant requested analysis of Pismo clarkia avoidance alternative and for additional analyses for biological impacts August 12, 2003 Addendum to Contract signed for revised Draft and Final SEIR November 24, 2003 Notice of Completion and Notice of Availability of Revised Draft SEIR January 29, 2004 60-day review ends for public comment on Revised Draft SEIR . February 25, 2004 Distribution of Revised Final SEIR March 2, 2004 Planning Commission recommends certification of the Revised Final SEIR The timeline for certification of the SEIR of one-year had been extended due to a suspension of time. and extension agreement from the applicant (CECA section 15108, 15109). CECA Review The purpose of the SEIR is to identify potential environmental impacts not adequately addressed in the 1991 Master EIR for Rancho Grande, disclose the impacts to decision- makers and the public, and make recommendations on feasible alternatives and mitigation measures to avoid or mitigate the impacts. CECA requires that the decision-making body for the project certify that the CECA process has been completed, and that significant environmental impacts created by the projeyt will be avoided or mitigated, where feasible, before approving the project. The SEIR effectively is tiered off the Master Rancho Grande EIR completed in 1991. Specifically, the SEIR is prepared to address impacts that are new, substantially different, . or were not considered in the previous 1991 Master EIR. The SEIR is intended to inform public agencies, decision-makers and the public of significant environmental effects of the project, identify ways to minimize significant effects, and describe reasonable alternatives. The SEIR receives the same circulation and review as an EIR. The Draft SEIR for the project was published for public review and comment on February 21, 2003. The public comment period ended April 7, 2003. The Final SEIR consists of the written comments submitted on the Draft EIR, responses to those comments, and corresponding amendments to the SEIR as appropriate. Upon direction of the City Council -~--_._._....~--_._---------_._.__._-- -- - ---...-.....-..-.-----.-.-.--.-- ~- CITY COUNCIL CONSIDERATION OF REVISED FINAL SUBSEQUENT ENVIRONMENTAL IMPACT REPORT FOR VESTING TENTATIVE TRACT MAP 01-001 AND PLANNED UNIT DEVELOPMENT 01-001 APRIL 13, 2004 PAGE 5 on May 13, 2003, significant and new information was included in the document and a Revised Draft prepared and published for public review and comment on November 24, 2003, ending on January 29, 2004. The Revised Final SEIR incorporates the April 2003 Final SEIR by reference. If a Final EIR concludes that a project would have a significant impact on the environment that cannot be mitigated to a less than significant level, the project cannot be approved unless the City Council adopts certain CEQA findings and a "Statement of Overriding Considerations." This Statement, which must be supported by substantial evidence in the record, would document the specific social, economic, legal, technological and other benefits of the project considered by the City Council to override its impact on the environment. Revised Final SEIR Conclusions The Revised Final SEIR (RFSEIR) for the project, similar to the FSEIR, concludes that all environmental impacts can be mitigated to a less than significant level exceDt for the project impact to biological resources. Specifically, construction of the project would impact Pismo clarkia, a Federally-listed Endangered and State-listed Rare plant species, occurring within the project site. Additionally, the significant and unavoidable cumulative environmental impacts include the loss of Pismo clarkia and the loss of wildlife foraginglbreeding areas. If the project were approved, the City Council would therefore be required by CECA to adopt a Statement of Overriding Considerations. Since the "project" is not being considered for approval at this time, deliberations on overriding considerations are not necessary. Presently, all that is being considered is the adequacy of the SEIR, whether it has been completed in compliance with CEQA, and whether the RFSEIR reflects the Council's independent judgment and analysis. The RFSEIR concludes that neither the project nor any of the eight alternatives considered would fully avoid the significant and unavoidable impact with respect to Pismo clarkia. CECA requires that an environmentally superior alternative, other than the no project alternative, is identified in an EIR. The RFSEIR identifies a variation of Alternative 8, the Pismo clarkia Avoidance Alternative, as the preferred alternative other than the No Project alternative. Although Alternative 8 minimizes impacts to Pismo clarkia, it would substantially increase impacts to drainage systems, wetlands, riparian areas and oak trees. The RFSEIR indicates impacts could be further minimized by eliminating additional lots as indicated on page 8:.58 of the Revised Draft SEIR and on the map following page 6 of the RFSEIR. Consideration and Certification of a Final EIR CEaA requires that the decision-making body certify that the following circumstances exist prior to approving a project: -- _.__~___..__._ ._n__ .._______ CITY COUNCIL CONSIDERATION OF REVISED FINAL SUBSEQUENT ENVIRONMENTAL IMPACT REPORT FOR VESTING TENTATIVE TRACT MAP 01-001 AND PLANNED UNIT DEVELOPMENT 01-001 APRIL 13, 2004 PAGE 6 . The Final EIR has been completed in compliance with CEOA; . The Final EIR was reviewed and considered by the decision-making body; and . The Final EIR represents the Lead Agency's independent judgment and analysis. If the RFSEIR is certified, the project will be reviewed by the Planning Commission and City Council, along with a mitigation monitoring program and submittal of CEOA required findings for each class one and class two impact per CECA Section 15091. Certifying the SEIR for the project does not predispose the decision-making body to approve the project. Public Notice Notices regarding the RFSEIR for the project were sent to 69 property owners within 300 feet of the project and a public hearing notice was published in the Times-Press Recorder on April 2, 2004. AL TERNA TIVES The following alternatives are presented for City Council consideration: 1. Find that the RFSEIR is in compliance with CEOA and adopt the resolution to certify the RFSEIR; or 2. Find that the RFSEIR is not in compliance with CEOA and do not certify the RFSEIR. Attachments: 1. City Council meeting minutes from May 13, 2003. 2. Planning Commission meeting minutes from March 2, 2004. 3. Planning Commission Resolution recommending RFSEIR certification. 4. Planning Commission meeting minutes from April 30 and May 7, 2003. 5. VTTM/PUD 01-001 Revised FSEIR (comments and responses, and corresponding amendments to the Revised Draft SEIR). Previously distributed; copies on file in the Community Development Department for public review. """ ~" RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE CERTIFYING THE COMPLETION OF AND MAKING FINDINGS AS TO THE REVISED FINAL SUBSEQUENT ENVIRONMENTAL IMPACT REPORT PREPARED FOR VESTING TENTATIVE TRACT MAP 01- 001 AND PLANNED UNIT DEVELOPMENT 01- 001 (PREVIOUSLY KNOWN AS TRACT 1998) WHEREAS, a Final Master Environmental Impact Report {"MEIR"}" for the Rancho Grande Subdivision was prepared and certified in March 1991 for a 354-lot residential subdivision which specified that a separate EIR, analyzed as part of the cumulative impact analysis of the Rancho Grande Final EIR, must be submitted for.a specific project proposed for a cluster subdivision at the northeast corner of James Way and La Canada; and WHEREAS, in the twelve (12) plus years said MEIR was considered, many substantial environmental changes .have occurred, both as a result of changes in environmental conditions, changes in laws relating to the environment, and as a result of the cumulative aspects resulting from additional approved development (reference PRC Sec. 21157.6{b)); and WHEREAS, a Subsequent Environmental Impact Report (the "SEIR") for Vesting Tentative Tract Map 01-001 and Planned Unit Development 01-001, (the "Project") was prepared by Rincon, Inc. {the "Consultant"} for the City of Arroyo Grande (the "City") pursuant to the California Environmental Quality Act (Public Resources Code Section 21000 et seq.), the Guidelines for Implementation of the California Environmental Quality Act (14 Cal. Code Regs. Section 15000 et seq., hereinafter the "State CEQA Guidelines") and local procedures adopted by the City pursuant thereto; and WHEREAS, copies of the Draft SEIR were distributed to the State Clearinghouse and to those public agencies which have jurisdiction by law with respect to the Project and to other interested persons and agencies, and the comments of such persons and agencies were sought; and WHEREAS, the Draft SEIR was thereafter revised and supplemented to adopt changes deemed necessary, and to incorporate comments received and the City's response deemed necessary to those comments, and as so revised and supplemented, a Final SEIR was prepared and submitted to the Planning Commission of the City of Arroyo Grande for review and consideration at the special meeting of April 30, 2003 and the regular meeting of May 7,2003; and RESOLUTION NO, PAGE 2 of4 WHEREAS, at its duly noticed meetings conducted on April 30, 2003 and May 7,2003 the Planning Commission recommended that the City Council accept and certify the Final SEIR prepared for the project with additional comments and clarifications; and WHEREAS, a duly noticed public hearing was held by the City Council on May 13, 2003 to consider the Final SEIR relating thereto, following notice duly and regularly given as required by law, and all interested persons expressing a desire to comment thereon or object thereto having been heard, and said Final SEIR, which consisted of the Draft SEIR, as revised and supplemented, incorporating all comments received and the response of the City as of the date hereof, having been considered; and WHEREAS, the Final SEIR was found to require significant, new information and a new project alternative was requested by the applicant to be analyzed in the document, requiring recirculation of the document; and WHEREAS, said additional investigation and analysis work was duly authorized and performed; and WHEREAS, copies of the Revised Draft SEIR were distributed to the State Clearinghouse and to those public agencies which have jurisdiction by law with respect to the Project and to other interested persons and agencies, and the comments of such persons and agencies were sought; and WHEREAS, at its duly noticed meeting on March 2, 2004 the Planning Commission recommended that the City Council accept and certify the Revised Final SEIR prepared for the project with additional comments and clarifications; and WHEREAS, a duly noticed public hearing was held by the _ City Council on April 13, 2004 to consider the Revised Final SEIR relating thereto, following notice duly and regularly given as required by law, and all interested persons expressing a desire to comment thereon or object thereto having been heard, and said Revised Final SEIR, which consists of the Final SEIR, as revised and supplemented, incorporating all comments received and the response of the City _ as of the date hereof, having been considered. NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Arroyo Grande does hereby: Section 1. Certify that the Revised Final SEIR for the Project has been completed in compliance with the California Environmental Quality Act (CEQA) , the State CEQA Guidelines and local procedures adopted by the City pursuant thereto and that the Revised Final SEIR reflects the independent judgment and analysis of the City Council, as req-uired by Public Resources Code Section 21082.1 and Section 15090 of the CEQA Guidelines with the following additions/revisions: RESOLUTION NO, PAGE 3 of4 1. Mitigation measure B-2(a) be revised to indicate a 50-foot setback from the top of creek bank to buffer wetland and riparian areas; 2. Mitigation measure B-4{a) be revised to indicate a 50-foot setback from Pismo clarkia occurrences to buffer Pismo clarkia habitat 3. Mitigation measure B-3(a) be revised to indicate a more than 3: 1 ratio for oak tree relocation and/or rep. 4. The mitigation-monitoring program shall include the establishment of a Maintenance District to supplement a Home Owner's Association as the mechanism for long-term monitoring of mitigation measures related to biological impacts. Section 2. Independently review and analyze the Revised Final SEIR and consider the information contained therein and all comments, written and oral, received at the public hearing on the Revised Final SEIR. 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 ,2004. RESOLUTION NO, PAGE4of4 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 A TT ACHMENT 1 CITY COUNCIL MINUTES MAY 13,2003 PAGE 6 Council Member Runels returned to the dais. g,a, Consideration of Final Subsequent Environmental Impact Report (SEIR) for Vesting Tentative Tract Map and Planned Unit Development 01.001, Castlerock Development, Associate Planner McClish presented the staff report and recommended the Council adopt a Resolution certifying the Final Subsequent Environmental Impact Report (SEIR) prepared for Vesting Tentative Tract Map 01-001 and PUD 01-001 as adequate and complete pursuant to the requirements of the California Environmental Quality Act (CEQA). John Rickenbach, Rincon Consultants, Inc., reviewed the purposes of CEQA; the EIR process; explained that Council is considering approval of the Final SEIR, not approval of the project; reviewed the project history; description of the project area; project components; significant and unavoidable impacts, including to biological resources; significant but mitigable impacts; less than significant impacts, and alternatives to the project. Mr. Rickenbach and Kevin Merk, Senior Plant Ecologist/Restoration Specialist from Rincon Consultants then responded to extensive questions from Council members regarding the Final SEIR. Mayor Ferrara opened the Public Hearing. The following members of the public spoke regarding the Final Subsequent Environmental Impact Report for Vesting Tentative Tract Map and Planned Unit Development 01-001 : Dennis Law. representing Castlerock Development, submitted extensive additional material (on file in the Administrative Services Department) some of which related to the FSEIR. Bob Brownson. spokesperson, Citizens for the Environment. in Arroyo Grande, submitted written comments (on file in the Administrative Services Department) regarding 25-foot versus 50-foot setbacks in Tract 1998 (yVT 01-001). He provided arguments against 25-foot setbacks and arguments in favor of 50-foot setbacks for Meadow Creek and the adjacent riparian habitat and from Pismo Clarkia, and opposed the idea that a Homeowners Association could adequately enforce the mitigation measures. Mr. Brownson also provided written comments (on file in the Administrative Services Department) regarding substantial interference with regard to established resident or migratory wildlife corridors. He concluded by requesting modification of the setbacks back to 50 feet and said they believe that on-site cumulative impacts to biological resources is a Class I significant and unavoidable impact and it should be included as an additional mitigation or condition of approval when the City Council ratifies the SEIR. _..,-- CITY COUNCIL MINUTES MAY 13, 2003 PAGE 7 Jerry Tuft, Arroyo Grande resident, stated that Homeowner's Associations could not police the mitigation measures sufficiently to protect the creeks as they have difficulty enforcing other regulations. He favored the establishment of a 50-foot setback. Nanci Parker, Arroyo Grande resident and former Planning Commissioner, expressed concerns regarding impacts to Pismo Clarkia; noise and lighting impacts to riparian habitat; impacts to biological resources; using Homeowner's Associations to enforce mitigation measures; and stressed the importance of protecting Meadow Creek and the Pismo marshland. Richard Nuttina, Arroyo Grande resident, stated that the Homeowner's Association should not be held to enforce the required setbacks. David Chippina, Conservation Director, California Native Plant Society, submitted written comments (on file in the Administrative Services Department) regarding considerations for buffer width for Pismo Clarkia populations. He also commented that Alternative C appeared to be the best alternative. William Waaner, environmental scientist, stated that setbacks do not matter, the environment is constantly changing and evolving, and that the worst impact was actually fluoridating the water supply. Ella Honevcutt, Arroyo Grande resident, stated that Meadow Creek was not addressed adequately and the FSEIR does not address the watershed issue. Doualas Tate illustrated the distance of 25 feet with a tape measure and asked if this was an adequate distance to protect riparian habitat. He agreed that the Homeowner's Association should not be enforcing that regulation, and that he supports the original 50 foot setback requirement. He supported the enforcement of no net loss of Pismo Clarkia. Frances Rice, Arroyo Grande resident, did not address the Council; however, she submitted a written letter for the record regarding the building of further homes on La Canada (on file in the Administrative Services Department). . Mayor Ferrara called a recess at 10:10 p.m. The Council reconvened at 10:20 p.m. r~ Mary Pinole, member of the Highlands Homeowners Association, concurred and I stressed that Homeowners Associations cannot enforce the setback regulations. I Dennis Law, clarified earlier comments and reminded the Council that the applicant i has proposed a Pismo Clarkia Avoidance Alternative which he stated would address ! all concerns expressed. He suggested that if the Council decided to include the alternative it might be necessary to recirculate the document to analyze this I alternative's impacts. He requested the Council continue the item in order to allow the consultant to further evaluate the alternative proposed. Hearing no further public comments, Mayor Ferrara closed the Public Hearing. Mayor Ferrara referred to the Pismo Clarkia Avoidance Alternative presented by Mr. Law and asked if a recommendation had been made to further study it. ~ CITY COUNCIL MINUTES MAY 13, 2003 PAGE 8 City Attorney Carmel indicated that Castlerock brought forth the alternative and he deferred to the consultant as to whether there was sufficient detail in the diagram previously submitted to allow the consultant to meaningfully analyze this alternative. Mr. Rickenbach responded that the hand drawn map was a good start and that any other detail that could be provided and defined would be useful. Mayor Ferrara asked whether there was some allowance in the CECA process for further expansion of this alternative in a subsequent study. City Attorney Cannel responded yes, that there is a specific provision in CECA for recirculation of new alternatives, modifications to the project, and new mitigation measures. Council Member Runels stated that due to the presentation of new infonnation, there was a need for further study and recirculation. He stated that 50 foot buffers should be reviewed and considered and agreed with comments that a Homeowner's Association or City officers are not going to be able to enforce the buffer requirements. Council Member Costello said there was a need for more infonnation and study regarding the buffer issue; that migratory corridors need to be defined more clearly; that the issue with watersheds and the affect of the project on the Pismo marsh needs to be identified more thoroughly; and that any mitigation measures that use the term "if feasible" be very clearly defined. He recommended recirculation based on those issues. Mayor Pro Tern Dickens stated that there were issues that needed to be looked at in greater detail, including: 1) reinvestigating or providing further study on the annual rainfall for the area and the effects of wet and dry years on the biological resources identified on the project site; 2) clarification on required fire buffers; 3) studying the reliability and effectiveness of implementing a Homeowners Association oversight program; and 4) studying further the Pismo Clarkia Avoidance Alternative. He favored moving forward with further study on these issues and recirculating the SEIR for additional public comment. Mayor Ferrara stated that he was inclined to disagree with the validity of offering a Homeowners Association oversight as a prime condition of mitigation to enforce buffer areas. He requested that further study be conducted considering public testimony received and make a recommendation based on additional research. With regard to the Pismo Clarkia, he requested additional study of expert sources regarding appropriate buffers. He said that Class I and Class II impacts should be clearly defined and that the Pismo Clarkia Avoidance Alternative should be considered. He favored recirculation of the SEIR. Mr. Rickenbach provided a recap of the issues the Council was requesting for further study as follows: provide a study and analysis of the Pismo Clarkia Avoidance Alternative put forth by the applicant; provide an analysis on riparian and wetland ----'------- -- CITY COUNCIL MINUTES MAY 13, 2003 PAGE 9 buffer distances (25' vs. 50'); define migratory corridors and analyze their effectiveness in more detail as related to classification of impacts to wildlife and wildlife habitats; provide clarification of the effects on water quality particularly to Pismo Lake; discuss and define areas where the term "if feasible" is identified in the mitigation measures; study the effect of annual rainfall and whether that makes any difference to the mitigation measures suggested. with respect to impacts to biological resources; provide more information on fire impacts in relation to recommended buffers; study the effectiveness of using HOA's for enforcement of mitigation measures and how that relates to recommended buffers; and provide a written description of the different expert opinions regarding Pismo Ctarkia buffering effectiveness. He clarified that only revised portions of the FSEIR would be re- circulated for a 45-day public comment period. Discussion ensued with regard to the timeframe needed for the consultant to gather information from the applicant in order to provide additional analysis. It was agreed that a status report and timeline would be provided to the Council at its June 10, 2003 meeting. Discussion also ensued regarding payment for the additional environmental analysis and recirculation. Mr. Law, representing the applicant, agreed that the applicant would pay for those costs. Mayor Pro Tern Dickens moved to continue consideration of the Final Subsequent Environmental Impact Report for Vesting Tentative Tract Map and Planned Unit Development 01-001 to a date uncertain, but not to exceed September 30, to allow review of the items identified by Rincon Consultants. Following discussion, Council Member Costello seconded the motion, and on the following roll-call vote, to wit: AYES: Dickens, Costello, 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: 11,a, Consideration of an Ordinance Amending Title 13 of the Arroyo Grande Municipal Code and Resolution for the .Implementatlon of a Water Conservation Program and Authorization to Advertise Notice of Inviting Bids f~r Plumbing Retrofits, ATTACHMENT 2 MINUTES CITY OF ARROYO GRANDE PLANNING COMMISSION MARCH 2, 2004 - 6:00 P ,M, CALL TO ORDER - The Arroyo Grande Planning Commission met in regular session with Chair Guthrie presiding; also present were Commissioners Arnold, Brown, Fowler and Keen. Staff members in attendance were Community Development Director, Rob Strong, Associate Planner, Teresa McClish, Assistant Planner, Jim Bergman and Public Works Engineer, Victor Devens. AGENDA REVIEW: No changes in the Agenda. APPROVAL OF MINUTES: The minutes of February 17, 2004 were approved on a 4/0 voice vote, Commissioner Brown abstaining being absent from the February 17, 2004 meeting. 1, A, ORAL COMMUNICATIONS: None B, WRITTEN COMMUNICATIONS: 1. Letter from RRM Design Group re Architectural Review 04-003: the exterior design revisions to previously approved Courtland Street Senior Housing Project (ACUP 02- 003 & VAR 02-004). 2. Memo from Public Works re comments on SEIR VTTM 01-001 (formerly Tract 1998), Agenda Item III.B. 3. Memo from Public Works re DSEIR review for Tract 1798, County tract adjacent to Tract 2207, Vista Del Mar. II.A, MINOR USE PERMITS APPROVED SINCE FEBRUARY 3.2004 - SUBJECT TO 10- DAY APPEAL: MEX 04-001 Blake English 311 Poole Street Request to continue having a single J. Bergman car garage after substantial I remodelin of house. I TUP 04-002 Pete Dougall Lawn area on Annual March of Dimes Walk A. Koch Nelson St. PPR 04-002 Gary Ellsworth 1037East Grand Ave Tattoo Parlor/Triecl & True J. Bergman & A. Koch ARC 03-005 Phil Zeidman 528 E. Branch Relocate and remodel existing building R. Foster (for ARC and construct one new mixed-use approval on building. (EVP PUD refinement). 3/1/04) Mr. Strong presented Written Communication No.1, for approval under the Minor Use Permits, Architectural review 04-003, exterior design revisions to the previously approved Courtland Street Senior Housing Project. He stated that the ARC approved the changes in architecture. I --- I MINUTES PAGE 5 PLANNING COMMISSION MARCH 2, 2004 7:30 P,M, 8, REVI$ED DRAFT SUBSEQUENT SEIR FOR VESTING TENTATIVE TRACT MAP AND PLANNED UNIT DEVELOPMENT CASE NO, 01-001 (TRACT MAP 1998); APPLICANT -CASTLEROCK DEVELOPMENT; LOCATION - RANCHO GRANDE, CORNER OF JAMES WAY AND LA CANADA, Status report prepared and presented by Teresa McClish. Ms. Mclish gave an overview of the Final Revised SEIR for a Vesting Tentative Tract Map and Planned Unit Development 01-001 to subdivide approximately 26 acres for residential development. The Planning Commission previously reviewed the Finsl SEIR and conditionally recommended certification based on: . An increase in riparian and Pismo Clarkia setbacks to 50 feet. . Mitigation of biological impacts that do not solely rely upon Home Owner's Associations (HOA's). . No acceptance of in-lieu fees or off-site mitigation for biological impacts. . Consideration of an on-site cumulative biological impact designation of Class 1. . Elimination of permanent oak tree removal in favor of relocation. Ms. McClish further stated that the City Council requested recirculation of the Final SEIR to further address the biological impact issues and include an analysis of a proposed Pismo Clarkia avoidance Alternative at the request of the applicant. John Rickenbach, Planning Manager, Rincon Consultant, Inc., introduced Jeff Olivera and Kevin Merk, Biological Resource Manager from Rincon. He then gave an overview of the project and the project history, described the site, stated the SEIR does not have all answers, that the revised SEIR is very similar to the original SEIR, explained the concerns they had addressed in the SEIR, and described the findings in the document stating the significant unavoidable impacts of the project are both related to biological resources: 1. The impacts to Pismo Clarki a (a Federally listed, endangered State listed Rare plant species. 2. The Cumulative Impacts relating to the general site (the foraging, the breeding habitat and the Pismo Clarkia), the general degradation in the context of the overall regional resource that exists at the site. Mr. Rickenbach further stated that all the other impacts that were identified in the SEIR were considered significant but mitigable; he described the Alternatives contained in the Revised Final SEIR. In answer to a question from Commissioner Arnold, Mr. Strong confirmed that PD 1.2 allows up to 527 lots. In answer to a second question from Commissioner Arnold, Mr. Rickenbach stated that Alternative 8 would to a greater degree, avoid Class 1 Impacts to Pismo Clarkia and avoid some of the other impacts. --------- MINUTES PAGE 6 PLANNING COMMISSION MARCH 2, 2004 Chair Guthrie opened the Hearing for public comments. Ella Honeycutt, Oak Hill Road, had compiled a report on Pismo Lake history which she handed to staff for the record and addressed her concerns with the Pismo Lake Watershed, specifically with erosion. Bob Brownson, Asilo, stated his concerns, addressing his dissatisfaction with the lack of clarity regarding the maps included in the SEIR. He recommended that the SEIR should be denied in its present form, specifically due to the reduction in the setbacks from 50 to 25- feet. He also discussed that all the alternatives and the proposed project 'take' Pismo Clarkia and there should be no mitigations to transplant it; there is a significant Class I impact to wildlife as there is no corridor; having a Homeowner's Association take care of overseeing the setbacks is a foolish idea; the proposed 25-foot setback would cause contamination to the creek; there would be problem with fire as this is a valley with notorious high winds and the emergency fire exits shown only go to the end of the property which leads to a private street. Doug Tait, Asilo, wanted 50-foot setbacks; the use of HOA to enforce mitigations would be inadequate; diversion of springs on the property should be addressed, could this be lowering the water table and affecting the condition of the wetlands, what is it being used for, and it should be investigated; stated concerns with the Eucalyptus trees; he would like to see the removal of these trees. Richard Nutting, La Canada, representative HOA, agreed with Mr. Brownson's comments and stated that replacing the 50-foot setback with 25-foot setbacks, with HOA overseeing mitigation requirements is unreasonable and unenforceable. Paul Farrell, Asilo, expressed his belief that this was a bad development plan; stated developer greed drives this. Cindy Cleavland. Wildlife Biologist, stated in her opinion the project impact and site description are unclear and incomplete; the 25-foot setback as a mitigation measure are inadequate to protect all the riparian areas, even 50-foot may not be adequate; the use of a HOA as mitigation is inadequate; the mitigation measures are unspecific and uncertain for the public to evaluate; the mitigation measures should not rely on future consultation with other responsible agencies. David Chipping, California Native Plant Society, spoke regarding the differences between the draft and the Final SEIR, specifically from the biological aspects; questioned if the document gave sufficient information to enable the Planning CommissiQn and City Council to make a decision; stated transplantation of oaks was not a valid form of mitigation and bonding for two years was not adequate; the buffer response from Rincon was disappointing; the quantitative impact estimations of wetlands is not included (except in the Final SEIR); in his estimation the SEIR document has major failings and as such should not be recommended for certification. Karen Tait, Asilo, gave a 25-foot setback demonstration with use of a tape measure. -- ._--------_.--,- ---- MINUTES PAGE 7 PLANNING COMMISSION MARCH 2, 2004 Pamela Heatherington, Environmental Center SLO, had concerns that the SEIR included a new project; stated she did not think the distribution of the SEIR was done in sufficient time for review; had concerns that reference to Planning Commission Resolution 03-1898, dated May 7,2003 which included Conditions, was not included in the final document. Nanci Parker, Vard Loomis Lane, stated the meadow creek impacts to the Pismo Watershed is the main issue that needs to be addressed; why did the SEIR come back with a 25-foot setback after the recommendation. of looking at 50-foot setbacks; oak tree removal cannot be justified to protect Pismo Clarkia; HOA is not a mitigation; the EIR mitigations are unreasonable; an Overriding Consideration for the 25-foot setbacks would be required. The 50-foot setback would not restrict building. An acceptable compromise would be to limit the number of homes to areas that do not encroach in any way on the riparian wetland, oak and stream areas; plan for. an adequate buffer between home sites and sensitive habitat area; enforce all mitigation to the fullest extent and provide for protection once a project has been completed. As presented she could not recommend certification of the SEIR. Gorden Hensley, EPI Center, assisting ECOSLO and the neighbors, stated his belief that the current SEIR was deficient and should be corrected; cumulative impacts have not been fully flushed out and should be discussed; the property is highly constrained and it is virtually impossible to put 36 lots into this sites; impacts are only mitigable if the 50-foot setbacks are adopted, not use a HOA and not allow in-lieu fees. He recommended against certification until the deficiencies of the SEIR are corrected, or direct staff to retum with findings denying the VTTM and approve the "no projecf as the preferred Alternative. Chair Guthrie closed the Hearing to public comment. . . Mr. Rickenbach responded to the comments, explaining that the Planning Commission can make modifications if they are not comfortable with the proposed mitigations; the mitigation measures included in the SEIR are considered adequate based on the information available; larger setbacks and different mechanisms can be required as part of the recommendation to City Council. He then responded to public comment: . Re erosion and the Pismo Lagoon, the mitigation measures proposed including the Best Management Practices that would be required as suggested by the applicant, are collectively adequate. . Mr. Brownson's comments regarding the maps contained in the Final SEIR: they include those prepared by the applicant, and other biologists over time who found different extensive Pismo Clarki a over time (because it is a moving target); the Commission can choose to certify the SEIR even if the impacts are significant if they have been described properly, or additional mitigation can be suggested. For Pismo clarkia, Rincon suggests mitigation but it is still a Class I impact; He clarified that the 25-foot setback would run from either top of bank or from the edge of the riparian area (whichever is more restrictive); the HOA's may be used in conjunction with other mitigation. . Re the existing drainage line that runs off the property to the north: that is not a feature that is included in the scope of the project and not considered this in the SEIR. ---. .._~ MINUTES PAGE 8 PLANNING COMMISSION MARCH 2, 2004 . The Padre Report referencing the spring on site: Rincon did not find anything other than what is in the report. . Re cutting the Eucalyptus trees to abate fire: the trees exist now and are part of the riparian corridor and though non-native do contribute to the habitat. . Re more quantification needed in the SEIR: The SEIR was scoped through the NOP process. They do quantify impacts in several places in the document. Mitigation is required commensurate wI the level of impact. Alternatives are compared and intended to describe how impacts may be reduced. . Oak tree replacement: a difficult endeavor with varying success rates. . Re the discussion on the grading impacts (deferred): grading plans for the project have not been drawn up yet, but the SEIR lays out the standards in which grading needs to occur and what the grading plans need to follow. . Tract access information: the information included was in the Draft EIR. In a response to comment, gave the benefit of an additional analysis with which to consider the Alternatives. . Education materials with respect to mitigating water quality: this is part of a strategy that was part of the overall program. . Limiting the number of homes is not part of an EIR, but is for the Commission to decide. Rincon stands by their analysi~ but the Planning Commission can modify. . Re denial of the Final SEIR because there is nothing in the record to suggest that the mitigation measures are adequate: Mr. Rickenbach stated that theSEIR does address cumulative impacts for the project; CEQA does not require cumulative impacts analysis for the Alternatives but they are commensurate with each increase or decrease of the level of each impact discussed for each alternative. Commission Comments & Questions: Brown: . The Consultant has done a great job in identifying what the issues are and with flushing out what the different impacts are with the site, but his concerns were with the conclusions on how to deal with the impacts (Pismo Clarkia and the cumulative effects). . Page 4.2-38, end of page: re cumulative impacts, there are some conflicting statements. Mr. Rickenbach explained that there are Alternatives that could be considered to achieve Class II, but it does not say that the Alternatives induded do achieve this. He believes that the impacts would be reduced with the Alternatives, but you still end up with a cumulative overall impact with the Alternatives that they looked at. . Page 4.2-35, fifth paragraph: re fuel modification program, asked if the Management Plan must be adhered to because of the sensitivity of this 'area. Mr. Merk replied that programs have been developed with the City of Arroyo Grande in concert with Fish & Game: specifically that mowing on grasses containing Pismo Clarkia be done after Labor Day. Brown in reply: There must be some enforcement mechanism (not HOA) to make sure that the programs are carefully implemented because of the Pismo Clarkia. Mr. Rickenbach agreed that the HOA should not be in charge of managing preserved open space with such ~- -- ----...-..-----..-"----- MINUTES PAGE 9 PLANNING COMMISSION MARCH 2, 2004 a very Rare plant species occurring in this habitat. The HOA can be the revenue source for a qualified expert. There was further discussion on 4.2-34 and 4.2-36 and clarification of relocation of the oak trees to sections of the site where Alternative 8 places homes; Clarification that 50 foot setback noted in Executive Summary incorrect and text discussions clarify 25 feet; Commissioner Brown stated that he could not see the findings to change the setbacks from 50 to 25 feet. Arnold: . He could not agree with the justification for 25-foot setbacks; public comment shows that there are other jurisdictions using greater setbacks. Mr. Rickenbach replied that part of their decision was based on the analysis done by Earth Systems who concluded that a 25-foot setback from top of bank would be adequate to mitigate for erosion concerns; biologically a 25-foot setback is going to be more restrictive than the requirement (from an erosion standpoint). . If Pismo Clarkia avoidance is the goal (the recommended Alternative 8) then removing lots 7, 8, 9 & 1, would be even more advantageous. Even with A1ternative 8 there is a Class I impact for Pismo clarkia. . .Asked for clarification from the City on the diverted spring. Mr, Strong said this needs further analysis; he had observed that there is an inlet system and pipeline along the northeast boundary of the tract and was probably a pre-existing condition that has not yet been evaluated but is not relevant to the SEIR at this point. Guthrie: . Asked for clarification on the boundary of the Pismo clarkia. Mr, Merk described the occurance. . Asked for clarification on the lack of a buffer beside the roadway and why Alternatives 7 & 8 were chosen as being the superior Alternatives. Mr. Rickenbach explained how they had arrived at the recommended Altematives keeping in mind the goal of the project. . Asked for explanation how HOA had been successful in other areas. Mr. Rickenbach described examples of HOA that had been successful and unsuccessful and the reasons why. . Are the lines on the map assuming that a successful connection for fire access would be allowed? Mr. Rickenbach replied that this is a concern, but they were presuming that this would be worked out through the City, Fire Department and property owners. Brown: . He was uncomfortable with the adequacy of the oak tree mitigations in the document. Final Commission Comments: Fowler: . The Commission is here to certify SEIR not the project; the SEIR does address and offer mitigations; she could certify the document. Arnold: . . Had a problem with the maps being conflicting and not showing setbacks at this time (only show the home situation). . He had a problem with the setbacks; they should be a minimum of 50-feet, and 30 -100- feet for fire protection. . There is a need for a more quantitative format so alternatives could be truly measured. ----..------ --.----- ____..___._~__._.n ~- MINUTES PAGE 10 PLANNING COMMISSION MARCH 2, 2004 . The number of oaks being destroyed (because of Pismo Clarkia). is completely unacceptable . It is unacceptable to require HOA and examples do not show that this would work. . There is no mention of on-site retention - what will happen to the runoff. . Concern with clustering the new homes being against the northeast property; there should be transition. . Cumulative Class 1 impact not addressed adequately. . Cannot ignore pipeline impacts on wetlands and approve the SEIR. Keen: . What the Commission recommended for the last SEIR (with the Conditions that were added) is still appropriate and the applicant will have to come back with a plan to meet the criteria and will have to take care of all that the SEIRidentifies; trying to choose one of the Alternatives is not the way to go. . Setbacks should be a minimum of 50 feet. . HOA would not be an effective enforcement mechanism. Guthrie: . He agreed with Commissioner Keen comments. . The mitigation for oak tree replacement should be more than one to one. . There has to be some oversight of setbacks monitoring. . Concem with how the drain line might have affected wetlands; concern that other actions may have taken place that may have affected riparian area. Chair Guthrie made a motion, seconded by Commissioner Keen, recommending that the City Council certify the completion and make findings as to the Revised Final Subsequent Environmental Impact Report prepared for VTTM/PUD 01-001 (previously known as Tract 1998) with the following conditions: 1. The mitigation setbacks for Pismo Clarkia and riparian corridor and wetland habitat be increased from 25-foot setbacks to 50-foot setbacks' . 2. The mitigation ratio for oak tree replacement should be increased. 3. Require preparation of an extensive mitigation-monitoring program involving more than only a Home Owner's Association. and adopt: RESOLUTION 04-1920 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ARROYO GRANDE RECOMMENDING THAT THE CITY COUNCIL CERTIFY THE COMPLETION OF AND MAKE FINDINGS AS TO THE REVISED FINAL SUBSEQUENT ENVIRONMENTAL IMPACT REPORT PREPARED FOR VTTMIPUD 01-001 (PREVIOUSLY KNOWN AS TRACT 1998) The motion was approved on the following roll call vote: AYES: Chair Guthrie, Commissioners Keen, Brown and Fowler NOES: Arnold ABSENT: None - --.- MINUTES PAGE 11 PLANNING COMMISSION MARCH 2, 2004 IV, NON-PUBLIC HEARINGS - None V, DISCUSSION ITEMS: County Proiect Referrals: 1. Laetitia Agriculture Cluster Tract No. 2606, (with project description maps FYI) - Southeast of Picacho Hill, two miles from the City. 2. Busick Tract Map 1789 Draft SEIR - Southeast of City limit northwest of 101 & EI Camp Road. The Commission had concerns that the already dangerous EI Campo freeway access would be negatively affected and recommended closure of left turn in and out at EI Campo until the overpass is in and require fair share contribution to future interchange. VI, PLANNING COMMISSION ITEMS AND COMMENTS: None VII, COMMUNITY DEVELOPMENT DIRECTOR COMMENTS AND FOLLOW-UP: None. VIII, TENTATIVE AGENDA ITEMS FOR MARCH 16.2004: No discussion. IX, ADJOURNMENT: The meeting was adjourned at 11: 1 0 p.m. ATTEST: L YN REARDON-8MITH, JAMES GUTHRIE, CHAIR SECRETARY TO THE COMMISSION AS TO CONTENT: ROB STRONG, COMMUNITY DEVELOPMENT DIRECTOR ! I f (Approved at PC meeting of 3/16/04) ~.~ ATTACHMENT 3 RESOLUTION NO, 04-1920 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ARROYO GRANDE RECOMMENDING THAT THE CITY COUNCIL CERTIFY THE COMPLETION OF AND MAKE FINDINGS AS TO THE REVISED FINAL SUBSEQUENT ENVIRONMENTAL IMPACT REPORT PREPARED FOR VTTMlPUD 01-001 (PREVIOUSLY KNOWN AS TRACT 1998) WHEREAS, a Final Environmental Impact Report (EIR) for the Rancho Grande Subdivision was prepared and certified in March 1991 for a 354-lot residential subdivision which specified that a separate EIR, analyzed as part of the cumulative impact analysis of the Rancho Grande Final EIR, must be submitted for a project proposed for a cluster subdivision at the northeast corner of James Way and La Canada; and WHEREAS, an Subsequent Environmental Impact Report (the "SEIR") for the Vesting Tentative Tract Map 01-001 and Planned Unit Development 01-001 (VTTM/PUD 01- 001, hereinafter referred to as the Project"), was prepared by Rincon, Inc. (the "Consultant") for the City of Arroyo Grande (the "City") pursuant to the California Environmental Quality Act (Public Resources Code Section 21000 et seq.), the Guidelines for Implementation of the California Environmental Quality Act (14 Cal. Code Regs. Section 15000 et seq., hereinafter the" CEQA Guidelines") and local procedures adopted by the City pursuant thereto; and WHEREAS, copies of the Draft SEIR were distributed to the State Clearinghouse and to those public agencies which have jurisdiction by law with respect to the Project and to other interested persons and agencies, and the comments of such persons and agencies were sought; and WHEREAS, the Draft SEIR was thereafter revised and supplemented to adopt changes suggested and to incorporate comments received and the City's response to said comments, and as so revised and supplemented, a Final SEIR was prepared and submitted to the Planning Commission of the City of Arroyo Grande for review and consideration in conjunction with consideration of recommendations for approval and adoption of the Project; and WHEREAS, a duly noticed public hearing was held by the Planning Commission on April 30, 2003 to consider the Project and the Final SEIR relating thereto, following notice duly and regularly given as required by law, and all interested persons expressing a desire to comment thereon or object thereto having been heard, and said Final SEIR and all comments and responses thereto having been considered; and ~-_..- ----- RESOLUTION NO, 04-1920 REVISED FINAL SEIR CERTIFICATION FOR VTTM/PUD 01-001 PAGE 2 WHEREAS, the Final SEIR, consisted of the Draft SEIR as revised and supplemented, was considered by the Planning Commission of the City of Arroyo Grande on April 30, 2003 and May 7, 2003 and a recommendation for certification of the final SEIR was conditionally approved; and WHEREAS, on May 13, 2003, the Final SEIR was considered by the City Council of Arroyo Grande and recirculation of the Final SEIR was recommended to evaluate an additional alternative and to provide additional analyses for biological Impacts; and WHEREAS, the a Revised Draft SEIR was prepared by the Consultant pursuant to the California Environmental Quality Act (Public Resources Code Section 21000 et seq.), the Guidelines for Implementation of the California Environmental Quality Act (14 Cal. Code Regs). Section 15000 et seq., hereinafter the "CEQA Guidelines") and local procedures adopted by the City pursuant thereto; and WHEREAS, copies of the Revised Draft SEIR were distributed to the State Clearinghouse and to those public agencies which have jurisdiction by law with respect to the Project and to other interested persons and agencies, and the comments of such persons and agencies were sought; and WHEREAS, the Revised Draft SEIR was thereafter revised and supplemented to adopt changes suggested and to incorporate comments received and the City's response to said comments, and as so revised and supplemented, a Revised Final SEIR was prepared and submitted to the Planning Commission of the City of Arroyo Grande for review and consideration in conjunction with consideration of recommendations for approval and adoption of the Project; and WHEREAS, a duly noticed public hearing was held by the Planning Commission on March 2, 2004 to consider the Revised Final SEIR relating thereto, following notice duly and regularly given as required by law, and all interested persons expressing a desire to comment thereon or object thereto having been heard, and said Revised Final SEIR . and all comments and responses thereto having been considered; and WHEREAS, the Revised Final SEIR consists of the Revised Draft SEIR, as revised and supplemented, incorporating all comments received and the response of the City as of the date hereof. NOW, THEREFORE, the Planning Commission of the City of Arroyo Grande resolves as follows: Section 1. The Planning Commission has independently reviewed and analyzed the Final EIR and considered the information contained therein and all comments, written and oral, received at the public hearing on the Revised Final SEIR prior to adopting this Resolution. ~----- .- ------ RESOLUTION NO, 04-1920 REVISED FINAL SEIR CERTIFICATION FOR VTTM/PUD 01-001 PAGE 3 Section 2.. The Planning Commission hereby recommends that the City Council of Arroyo Grande certify that the Revised Final SEIR for the Project has been completed in compliance with the California Environmental Quality Act (CEQA), the State CEQA Guidelines and local procedures adopted by the City pursuant thereto. The Planning Commission further recommends that the City Council find that the Revised Final SEIR reflects the independent judgment and analysis of the City Council, as required by Public Resources Code Section 21082.1 and Section 15090 of the CEQA Guidelines with the following additionslrevisions: 1. Mitigation measure B-2(a) be revised to indicate a 50-foot setback from the top of creek bank to buffer wetland and riparian areas; 2. Mitigation measure B-4(a) be revised to indicate a 50-foot setback from Pismo clarkia occurrences to buffer pismo clarkia habitat 3. Mitigation measure B-3{a) be revised to indicate a ratio greater than 3: 1 for replacement plantings. 4. The mitigation-monitoring program shall include an additional mechanism to supplement a Home Owner's Association to ensure long-term monitoring of mitigation related to biological impacts. On motion by Chair Guthrie, seconded by Commissioner Keen, and by the following roll call vote, to wit AYES: Chair Guthrie, Commissioners Keen, Brown and Fowler NOES: Commissioner Arnold ABSENT: None the foregoing Resolution was adopted this 2nd day of March, 2004. ATTEST: L YN REARDON-SMITH, JAMES GUTHRIE, CHAIR SECRETARY TO THE COMMISSION AS TO CONTENT: ROB STRONG, COMMUNITY DEVELOPMENT DIRECTOR -- ,---- - - - - -.---.-- A TT ACHMENT 4 MINUTES I I CITY OF ARROYO GRANDE I SPECIAL MEETING OF THE PLANNING COMMISSION APRIL 30, 2003 CALL TO ORDER - The Arroyo Grande Planning Commission met in regular session with Chair Guthrie presiding. Also present were Commissioners Arnold, Brown and Keen. Commissioner Fowler was absent. Staff members in attendance were Community Development Director Rob Strong and Associate Planner, Teresa McClish. APPROVAL OF MINUTES - The minutes of February 26, 2003 were approved unanimously as written on a 4/0 voice vote, Commissioner Fowler being absent. ORAL COMMUNICATIONS - None WRITTEN COMMUNICATIONS - 1. Letter from Robert & Donna Toth, dated April 27, 2003: Comments on the proposed Jasmine Place. 2. Public hearing agenda item II.A: Corrections to the FSEIR for VTTM & PUD 01- 001 regarding comments of Nanci Parker. 3. Public hearing agenda item II.A: Comments on the FSEIR for VTTM & PUD 01- 001 received from EPI Center, Gordon R. Hensley received by fax 4-30-03. AGENDA REVIEW - No changes requested. PUBLIC HEARING ITEM II.A: FINAL SUBSEQUENT ENVIRONMENTAL IMPACT REPORT FOR VESTING TENTATIVE TRACT MAP CASE NO, 01-001 AND PLANNED UNIT DEVELOPMENT CASE NO, 01-001 (PREVIOUSLY KNOWN AS TRACT 1998); APPLICANT - CASTLEROCK DEVELOPMENT; LOCATION - NORTHEAST INTERSECTION OF JAMES WAY AND LA CANADA, Staff report prepared and presented by Teresa McClish, Associate Planner. The Commission reviewed the Final SEIR for a proposed clustered single-family residential development consisting of 36 units on a 26.6-acre site, zoned PD 1.2. Ms. McClish stated that the project included an open space parcel of 16 % acres. on a 26.6-acre site and was deemed complete June 14,2001, She then gave an update on the project and SEIR, explaining the reasons for the SEIR and the process required for certification. In conclusion, Ms McClish stated that certifying the SEIR in compliance with CEQA does not predispose the certifying body to approve the project. John Rickenbach, Rincon Consultant, gave a power point presentation explaining the findings and alternatives contained in the Final SEIR. ---~.__.- MINUTES PAGE 2 PLANNING COMMISSION APRIL 30, 2003 Commission Brown had the following concerns: . Re: Pismo Clarkia avoidance: How can it be called a mitigation if language such as "feasible" is used? Mr. Rickenbach ~xplained that the original site plan had a Pismo Clarkia survey done a couple of years ago and Rincon consultants confirmed similar findings. The SEIR concluded. that even with mitigation measures for the proposed project there would still be a significant unavoidable impact. . Re: 25-foot buffer zone for preserved areas (Pismo Clarkia): Would it not be better to require a buffer of "at least" 25 feet? Mr. Rickenbach explained that their biologist worked informally with the Department of Fish and Game to determine what would be appropriate if a permit were required and the language of "at least a 25 foot buffer" could be included as a condition and the mitigation modified as such. . How would "Agency Permit Compliance" be a mitigation? Mr. Rickenbach replied that if a State or Federal agency allows a permit for the project it will have a series of conditions attached to it that effect mitigation. . In the Executive Summary it states that if monitoring data determines the gross population of Pismo Clarkia declining, then additional measures will take place. Does this indicate that there is no evidence that the mitigations would be successful? Mr. Rickenbach explained that there is some success, but the Pismo Clarkia is site specific to the area and has certain characteristics it needs to grow. . Riparian and wetland habitat: The Executive Summary states that the applicant would "likely be required to provide compensatory habitat" as a mitigation. Mr. Rickenbach said wetland and riparian can more easily be replaced effectively (compared to Pismo Clarkia). The plan does have setback potential within the lots shown, some of the riparian area could be avoided and in working with the Army Corps of Engineer it could be mitigated. . What "further analysis" was done to change the mitigation from 50 to 25 feet? Mr, Rickenbach said that in response to comments and after a second review, it was decided that less than 50 feet could be done and with conditions, still achieve the same level of mitigation. A 50-foot buffer affects the feasibility of lot configurations which would further impact Pismo Clarkia. . There is no comment under the "Cumulative Impacts" table about the effects of transplanting a large amount of oak trees on the foraging patterns of wildlife. Why is this not a class I impact? Mr. Rickenbach clarified there is no federal or state protection. T, but it is mitigable and through replacement you achieve a similar situation as you had before and through CEQA this is mitigation. Commissioner Arnold concerns: . When the study was done on the wetlands in 2000, it was a particular1y dry year, was this taken into consideration? Mr. Rickenbach said if you don't have water the extent of wetlands are still fairly easily determined by soil and plant types, but -- MINUTES PAGE 3 PLANNING COMMISSION APRIL 30,2003 their studies were conducted in 2002, and they also had previous studies to review. For the purpose of CEQA Rincon used the Corps method, as this would be required for through the permitting process, although the Cowardin method was also considered in the analysis. Commissioner Guthrie: . What is recovery time for replacement oaks and for the wildlife habitat to return? Mr. Rickenbach said younger trees are more appropriate for replacement in terms of survival rate - it could be ten years before they look like oaks. . Re the 25-foot setback: Would a HOA have success in monitoring this? Mr. Rickenbach said it has been effectively done and is a reasonable mitigation under CEQA, but the need for monitoring becomes less if the area is left alone. . Is it likely that the riparian habitat could be re-establish~d onsite? Mr. Rickenbach said there is very low to medium quality riparian habitat on site so re- vegetation within these areas is likely to be an enhancement. . Re the span bride versus a culvert in the Alternatives: Mr. Rickenbach referenced a meeting with the Federal & State agencies which resulted in the recommendation. Chair Guthrie opened the Public Hearing. Bob Brownson, 653 Asilo, explained the .impacts that he believed were critical to be considered as Class 1 unmitigable impacts. He further stated that noise and lighting had not been addressed adequately in the FEIR, the wetlands study initiated by the City completed by EIP in 1998 are not referenced in the FEIR to the degree of wetlands it showed; and in 1998 Chumash archeological evidence was seen on-site that should be found and identified. He did not believe that a HOA would take care of the buffer. He listed numerous reasons why he believed the area would be destroyed by development. He concluded by stating he did not support any of the alternatives (stepped away from the tape - could not hear details after this point). Paul Farroll, Riparian Architect, 765 Asilo, stated that they had been promised by the developer that this site would remain open space and he found the proceedings (FEIR) disturbing, geared to federal requirements, a fit for CEQA, but not representing the interests of the City of Arroyo Grande. He did not believe oak trees do well when transplanted as he listened to discussions at City Council and that transplanting of oak trees is not successful and the cost for the developer to transplant all these trees would be prohibitive. In conclusion he found the report to be inadequate and believed it should be redone. Ella Honeycutt, Coastal SLO Resource Conservation District, resident of Arroyo Grande, stated they she had sat on a committee for months and months of hearings when the City was adopting the Planned Development area and it was to be left as open space because it included wetlands. She handed the Commission a picture of what the area looked like at that time. She gave the history of the site and what had ~--- --- ----..--- --.--.-......-- MINUTES PAGE 4 PLANNING COMMISSION APRil 30, 2003 happened since Planned Development was adopted and that this was a beautiful wetland. Additionally, a survey should be done to see how many trees have survived since the changes took place. This is a unique area, mitigation sounds good, but does it really do what we want it to do. Pam Heatherington, Environment in Public Interest (EPI) of San Luis Obispo, gave a report on the letter written to the Commission by Gorden Hensley, Executive Director/Senior Ecologist for EPI regarding the project. Ms. Heatherington had some additional comments: . When a buffer zone is changed from 50 to 25 feet in a couple of weeks does not give enough time for the public to have meaningful discussion. . Changing the buffer zone from 50 to 25 feet does not reduce the mitigation. The significance of the impact increases potential for flooding. . The biological impact has not been addressed in the FEIR for the creek vein. . Keeping people out of these areas does not change the impact and I would ask for further comment from Rincon and Planning Commission about the change in the biological habitat with the change in the buffer zone. . Replanting of Pismo Clarkia in conjunction with removal of trees changes the habitat and would not be successful. . There has not been enough reference to the additiona.1 direct and cumulative runoff that would come with alternatives. When trees are removed impact for siltation and erosion increases. . Insurance does not cover houses built in a significant wetland. . The creek setback would still attract children and would not protect water quality. . . The archeological remains need to be addressed. . Meadow Creek flows into Pismo Lake - the cumulative effects do need to be addressed. Nanci Parker, resident of Arroyo Grande, stated the Commission had already received her comments on the FEIR and she had some additional statements to make: . Rincon misunderstood her comments re noise and lighting impacts. It is not the same issue as was addressed ten years ago and if this project is built it will impact the area and noise and lighting will increase and cannot be mitigated away. . She commended Rincon for putting the Pismo Clarkia under the area of significant and unavoidable, but other impacts should also be included under this heading. Ms. Parker then gave an explanation of her concerns as listed in the conclusion of her comments as being Class 1 Significant but unavoidable. . Alternatives to. the project: She could not see how lots 1-6 could be built because they are in the middle of the riparian buffer, lot 7-15 are directly between the riparian and Clarkia area, lots 17-36 are directly over the Pismo Clarkia area. Lot 16 is the only one not in the buffer area. So if an alternative needs to be made it needs to go back to the drawing board. --- --- ----_.._-----_.~._-- MINUTES PAGE 5 PLANNING COMMISSION APRIL 30, 2003 Paul Farroll spoke again, stating an example of the ineffectiveness of a HOA. Commission questions to Rincon consultant: . In the environmental review done in 1998, more wetlands were indicated - asked for comment on this. Mr. Rickenbach said their information for the biological assessment was based on information provided and the work that was done was verified in the field and the suggested mitigation measures were based on that. He would prefer to defer technical questions for a biologist to answer at upcoming meetings. . What does general activity such as fumes from autos etc. have on Pismo Clarkia? Mr. Rickenbach said human activity does affect plants, but to what extent he was not sure. However, there is healthy Pismo Clarkia existing among homes and traffic. . Is the level of mitigation established at the local level? Mr. Rickenbach explained that it was. . Is there information from a qualified biologist in written form commenting on the mitigations that have been discussed in the report? Mr. Rickenbach said a qualified biologist prepared them and he went on to explain the CEOA process and stated that verification of information required could be provided and added as part of the final certification of the EIR. Chair Guthrie asked for a 10-minute break. (At this point there was a small amount of the recording missing from the tape recording due to the manual stopping and starting of the recording machine.) Mr. Strong said a lot of the public concern deals with the distinction of Class 1 and Class 2 and went on to explain how the classifications and findings relate to the project. Comments continued from the Planning Commissioners: . What if the EIR only makes a discussion that mitigations "might" be accurate? Mr. Strong replied that the conclusions and findings rest with the decision making body and the EIR offers evidence as to what they feel would be feasible and appropriate mitigations. . If the 25 foot buffer remains in the document does this assume that we believe this is appropriate? Mr. Strong advised that the Commission should recommend what they believe is an adequate buffer. Planning Commission comments: . The FEIR could be recommended with some modifications. . Need to see justification from a biologist in written form on: 1. The history for successful transplant of Pismo Clarkia; Transplantation of Pismo Clarkia: In one part of the document it says that only the seeds can be transplanted, but in another section it says that the plant can be transplanted; like to have an expert give information on this at a meeting. 2. Pismo Clarkia: More explanation of why it is so rare - what criteria. MINUTES PAGE 6 PLANNING COMMISSION APRIL 30, 2003 3. Oak tree replacement: There is no incentive to make sure the 15-gallon trees are maintained. 4. Like to see a discussion on how habitat would be effected when the canopies of trees are trimmed and a time frame of when the area would be expected to get back to it's previous state; it is important that oak trees be transplanted in natural settings as recommended in the document for mitigation. 5. Justification on why the riparian habitat goes from 50 feet to 25 feet; the document is very thorough, but the 25-foot buffer is a problem; if the 25-foot buffer does not work with the HOA then Alternative 'C' does not work (the preferred alternative); concerns with the wetlands being much larger than contained in the report. 6. Would like comment from a biologist why the cumulative effect at this site is not a Class 1 impact; noise and lighting not adequately covered; will the recommended mitigations be successful and will the loss of riparian habitat and the oak wildlife habitat be mitigable? 7. Concern with relying on the Federal government and Corps of Engineers recommendations for acceptable mitigations. i . All the comments are based on a 36-lot subdivision, but it could all be changed with a smaller project. Commissioner Brown said the issue of Class 1 impacts from cumulative effects and the 50/25-foot buffer needs to be substantiated and he would like the consultant to come back in a week to address the concerns discussed before recommending approval to Council. Mr. Strong asked the applicant if an additional time extension was achievable? Dean Coker, Senior Planner, Castlerock Development, said they would not be interested in an extension, they had already had extensions. He believed that dislike of the project was being confused with approving the EIR and the consultants had done an adequate job on the EIR. Mr. Strong, after consulting with Rincon, suggested a special meeting on May 7,2003. Commissioner Brown made a motion, seconded by Commissioner Keen to adjourn the meeting and reopen the public hearing Wednesday, May 7, at 6:00pm. The motion was Ii approved on a 4/0 voice vote. ~ r NON-PUBLIC HEARING ITEMS: None. I t DISCUSSION ITEMS: None. I ! ~- MINUTES CITY OF ARROYO GRANDE PLANNING COMMISSION MAY7,2003 CALL TO ORDER - The Arroyo Grande Planning Commission met in regular session with Chair Guthrie presiding. Also present were Commissioners Arnold, Brown and Keen. Commissioner Fowler was absent. Staff members in attendance were Community Development Director Rob Strong and Associate Planner Teresa McClish. APPROVAL OF MINUTES - The corrected minutes of April 15 were approved as written on a motion by Commissioner Brown, seconded by Commissioner Arnold. ORAL COMMUNICATIONS - None. WRITTEN COMMUNICATIONS - Letter from Douglas W. Tait, 645 Asilo, Arroyo Grande, regarding Item II.A. AGENDA REVIEW - No change. I i PUBLIC HEARING ITEM ItA: CONTINUED DISCUSSION ABOUT THE FINAL SUBSEQUENT ENVIRNOMENTALIMPACT REPORT (FSEIR) FOR TRACT 1998 VESTING TENTATIVE TRACT MAP CASE NO, 01-001 OTHERWISE KNOWN AS (TRACT 1998) AND PLANNED UNIT DEVELOPMENT CASE NO, 01-001 (TRACT 1998), The Commission reopened the public hearing and continued the discussion to prepare recommendations for the City Council regarding certification of the Final Subsequent Environmental Impact Report (FSEIR) for VTTM 01-001 and PUD 01-001. Dean Coker, 202 H3 Tank Farm Road, SLO: . Asked the commission if the clerk would please let the Planning Commission know when the audio recording tape is running out and needs to be switched so the meeting can be paused until the tape is restarted, to avoid loss of recorded testimony. Teresa McClish presented the project to continue the discussion and allow Rincon Consultants to answer specific technical questions regarding'the FSEIR that were raised on ~ April 30, 2003 during the Public Hearing. A written explanation from Rincon was submitted ~ I to the Commissioners. ' ii I Staff recommended the Planning Commission adopt the attached resolution recommending I the City Council certify that the FSEIR prepared for the project is adequate and complete , pursuant to the requirements under the California Environmental Quality Act (CEQA). I Teresa introduced John Rickenbach of Rincon Consultants. I John Rickenbach, Rincon Consultants . Introduced Kevin Merck, Senior Plant Ecologist/Restoration Specialist and Biologist. -------- ---..----..------ MINUTES PAGE 2 PLANNING COMMISSION MAY 7,2003 . Kevin has led Rincon's team of biologists in drafting some of the clarifications requested by the Planning Commission. Commissioner Brown . Cutting the canopies of Oak trees (Item 4); Class 1 versus Class 2 impact - It would seem like a Class 1 impact just by the very nature of having human inhabitants there. Noise, lighting, and everything that goes with them would be, to some degree, immitigable. . Mr. Rickenbach responded stating that any project can affect anything. The question is whether the impact is significant under CECA? He further indicated the following: - Commonly in CEQA practice you acknowledge that there are adverse impacts. The question is whether you are impacting something that would otherwise be a significant resource from a cumulative perspective, a listed or rare species. - The judgment here is that you acknowledge an adverse impact, but there are mitigations. From a CEQA perspective the mitigations are intended to reduce impacts to less than significant. - Our judgment is that it is still a Class 2 impact. Commissioner Brown . Riparian setbacks (Item 5). Why does lessening a setback increase the amount of Pismo Clarkia that can be preserved? . Mr. Rickenbach said it is a very site-specific issue. Imagine the site as a valley with the creek on one side and Pismo Clarkia on the other side, and in the middle is essentially a constraint-free area. If the setback is larger along the riparian and you put something in that area, it could encroach on the Pismo Clarkia. . If you could achieve the same level of mitigation along the riparian side by going to a smaller setback, then you could potentially avoid impacting the Pismo Clarkia. Commissioner Brown . General impact to wildlife (Item 6). The cumulative impacts on the site versus regional impacts are just as important. On page ES-31 you clearly state that the regional impacts are Class 1 significant. Why would it not then follow from a site specific point that it would also be a Class 1 site specific, cumulative issue? . Mr. Richenbach replied that the nature of a CECA cumulative discussion is by its nature not cumulative to a site, it's cumulative to the region. - In the region lots of things happen (i.e., other projects which have the effect of degrading the habitat) and the net effect is that by combining it with what is happening on the site you have a cumulative ~navoidable impact, which is identified in the EIR. - The site is not properly called cumulative under CEQA. We look at it in total under CEQA. We conclude through the various biological components of the site, which we assess separately and together. Together you can potentially mitigate to a point that is less than significant. This is subjective. ---- ~._--._---_...- MINUTES PAGE 3 PLANNING COMMISSION MAY 7,2003 - You can't control what happens off site due to other projects in the region. The net effect is from all General Plans. If they build out the way they are intended to, you end up with an impact you cannot avoid. - On the site, our judgment is that you can individually mitigate for the impacts to the point where the overall impact to wildlife can be a less than significant level, based on the mitigation we have proposed. Both for that specific impact B5 and for the other impacts identified in that section. Commissioner Arnold . When reducing the setbacks, was some consideration given to the required fire hazard clearance? If you reduce the setbacks to 25-ft, but a 30-ft fire clearance is required around the homes, there's a risk of encroaching on the protected areas. . Mr. Rickenbach said he would review the information and respond to the question later. Chair Guthrie . What is unique about Pismo Clarkia? Doesn't it grow somewhere else? . Mr. Merck responded that the Pismo Clarkia is restrictive in its habitat requirements. It's found in a special soil series in an area of lower competition that doesn't occur everywhere (little patches of occurrences where the specific soil is located - loose, unconsolidated sandy soils - natural rarity and specific habitat type). Pismo Clarkia is specific to coastal sub.;strands - small, narrow strips where a unique combination of factors allow this species to exist. . In layman's terms, it's going to thrive in weak soil and limited slopes where there are specific advantages - a microclimate of shade, slope aspect and proximity to Oak woodland provides the unique climate. Chair Guthrie . How will the presence of the road and the removal of trees affect the Pismo Clarkia? . Mr. Merck responded that an active management plan and buffer zone would allow Pismo Clarkia to survive, without being overrun by exotics. He doesn't recall proposed Oak removal that would impact Pismo Clarkia. . Mr. Merck indicated that a Homeowner's Association (HOA) could have a specific management plan for managing this situation. Or, Fish and Game could monitor the situation, which is being done in. other situations. He is not aware if the HOA across James Way is responsible for monitoring Pismo Clarkia. . Mr. Merck said that an active re-vegetation program and active management plan would significantly reduce risk and damage. A qualified individual conducts weed abatement, ensuring that the re-vegetation program is proceeding successfully. The program is very detailed. Once the native plant communities are established they would be relative.ly maintenance free. HOA CC&Rs would restrict access to the protected area. . Chair Guthrie asked if the quality of the woodland habitat would be at risk due to lawns and heavy-duty insecticide run-off from neighboring residences? -- -~- MINUTES PAGE 4 PLANNING COMMISSION MAY 7,2003 . Mr. Merck said the area has a "large, contiguous area of Oak woodland habitat. Removal of some trees should not have a significant impact. Animals who currently reside at the site are adapted to the urban-woodland interface. . Mr. Rickenbach said that part of the Pismo Clarkia impact is unavoidable. Riparian is not going to be a significant impact. Restoration efforts can be done. Alternative C avoids riparian and woodland areas and Pismo Clarkia. There are still some impacts that cannot be avoided. Chair Guthrie . He does not agree with using State agencies as part of the mitigation measures. There is no guarantee that Federal or State agencies would mitigate by providing on- site riparian areas. They may require off-site or accept in lieu fees. . Mr. Merck indicated that their primary goal is to ensure that there is no net loss on- site. They will ensure that there is at least a 2:1 mitigation ratio. Increased mitigation ratios are happening regularly. Fish and Game currently requires a 5:1 mitigation ratio for permanent losses. They are becoming more stringent and are scrutinizing at a higher level of effort because these are sources of revenue for them. The in lieu fee program is used when there are sub-optimal mitigation areas on site. Commissioner Keen . Has Pismo Clarkia been grown in a controlled setting? . Mr. Merck indicated that this has been done. Chair Guthrie . What percentage of regeneration could be successful? How long would it take? . Mr. Merck stated that Oaks regenerate slowly, Horticulturists are doing this with 98- 100% success rate. Real regeneration of Oak woodland takes more than 10 years. To get older, stately trees would take 25-50 years. Mr. Rickenbach . To clarify previous comments regarding setbacks for fires - brush clearance needs to be 30-ft from structures. The setback is 25-ft from identified riparian habitat to grading. Distance to the structure is likely to be farther than that. . In Alternative C we've tried to stay out of that 25-ft area. The edge of the property line is at the edge of the 25-ft setback. The distance to the structure would be 35 or 40 feet, or whatever the case may be. Chair Guthrie . A letter was written last Friday from Gordon Hensley. Did you have a chance to respond to that? . Mr. Rickenbach said they must review Mr. Hensley's letter again and prepare a response. The responses submitted at this meeting are to the specific requests from the Planning Commission. . Chair Guthrie indicated that Mr. Rickenbach should be prepared to respond to Mr. Hensley's letter. ------- -- MINUTES PAGE 5 PLANNING COMMISSION MAY 7,2003 Chair Guthrie opened the Public Hearing. Bob Brownson, 653 Asilo, Arroyo Grande . Read May 7, 2003 letter from Pamela Heatherington, which was addressed to the Planning Commission. . Responded to Rincon's May 7,2003 memo. . Asked who plants and cares for the native plants? . Proposed that the Planning Commission approve the FSEIR with the following conditions: - 50-ft setbacks instead of 25-ft setbacks. - Cumulative impacts to on-site wildlife breeding and foraging areas and wildlife corridors should be considered unacceptable despite mitigation measures. Ellen Honeycutt . Meadow Creek is the headwater for a 3,OOO-acre watershed. . When Canyon Way was developed, trees were cut down and driveways cemented. Although planning was done, when a big rain came (before 1989) Tally Ho was flooded and many homes were affected. The cumulative effect on the watershed was not examined. . Mother Nature dumps rain. Do the homeowners need flood insurance? i . Make the setbacks adequate enough to protect the homes. I . The Canyon Way situation was all documented and can be looked up. I have the newspaper clippings if anyone wants them. This erosion happened because the hills were just cleared and building was started. . The City must live up to the original agreements in the original EIR. There are interesting things there that the City must live up to. There are some things the developer must do. Commissioner Brown . Asked Mr. Rickenback to respond to the comments about the cumulative impacts on the watershed. . Mr. Rickenback said they did a pretty extensive analysis of both geologic slope stability and flooding impacts, and geotechnical people visited the site. The conclusion was that the suggested mitigation (flooding, not biology) to deal with the impact of human population - 25-ft setback from the top of the bank - is not a problem and is less restrictive than a biological setback of 25-ft from the riparian area. . Mr. Rickenbach also provided the following information: - With a series of revegetation improvements there should not be a significant difference in terms of how the watershed behaves, even though there will be flood events due to wet years. - The EIR is the first step of preparing conditions of approval. The City engineer or geotechnical expert will review the project design and provide details to ensure flood protection of the development. - There will be fluctuation within the watershed - we don't see a significant difference before and after development. I I "------.-'--- MINUTES PAGE 6 PLANNING COMMISSION MAY 7,2003 - The goal here is to determine whether there is enough information to certify an EIR. The Council uses the information to determine whether to approve the project and to identify the conditions of approval. - The movement corridor is not the width of the setback. It's the width of the riparian area much closer to the creek. The width of the riparian area is between 100-200 feet. Chair Guthrie closed the Public Hearing. Commissioner Brown . Oak woodlands and trimming of the canopies - mitigation takes a long time and, therefore, is not less than significant impact. . Due to the proximity of population, interference with wildlife migration is a significant impact. . Pismo Clarkia without setback degrades habitat, which equals loss. Whether the setback is 25-ft or 50-ft there is still a Class 1 unavoidable impact. . HOA's are not trained or may not be motivated to do what they are being asked to do. There are no guarantees on the quality or effectiveness of an HOA (for this purpose). . Consultant's definition of cumulative is regional, but on-site combination of additive impacts creates additional Class 1 project related impact, in his opinion. . An HOA is not enough to change a 50-ft setback to 25-ft setback. . He recommends certification of the EIR with additional recommendation to Council that there is a Class 1 additive/on-site "cumulative" project impact. Commissioner Keen . A 50-ft setback should be required. . Ready to recommend approval. Commissioner Arnold . A 50-ft setback is necessary for Pismo Clarkia and Riparian areas. . HOA is not adequate mitigation. Concerned about government agencies following up and ensuring that mitigation measures are effective. . Fire clearance overlapping buffers is partial justification for larger 50-ft. setback. . Real problem with Oak tree removals. Success rate pretty high to relocate Oak trees. We should not allow Oak trees to be removed if they are viable specimens. . Not in favor of any in lieu fees or off-site mitigation. Mitigation should take place on the site. . We should recommend that this is cumulatively a Class 1 impact. Chair Guthrie . Report is complete. . Size and number of Oaks to be removed is an important issue. . Federal/State agency enforcement of mitigations is not assured in the long run. . Lack of successful HOA examples. i -- ..------ J MINUTES PAGE 7 PLANNING COMMISSION MAY 7,2003 . Recommend certification to the Council with a 50-ft setback and a general concern about collective impacts on wildlife. RESOLUTION NO, 03-1893 A RESOLUTION OF .THE PLANNING COMMISSION OF THE CITY OF ARROYO GRANDE RECOMMENDING THAT THE CITY COUNCIL CERTIFY THE COMPLETION OF AND MAKE FINDINGS AS TO THE FINAL ENVIRONMENTAL IMPACT REPORT PREPARED FOR VTTMlPUD 01-001 (PREVIOUSLY KNOWN AS TRACT 1998) Commissioner Arnold made a motion, seconded by Commissioner Brown, adopting Resolution No, 03-1893 recommending the City Council certify the Final SEIR for VTTM 01- 001, PUD 01-001 (Tract 1998), with the following conditions: - Minimum setback buffer of 50-ft from Pismo Clarkia, Riparian and Wetland areas. - Homeowners Association (HOA) would not be effective for ensuring that the area is not disturbed. - No In Lieu fees or off-site mitigation should take place. - Cumulative effects are Class-1 impact on site. - Oak trees are to be moved, not cut down. The motion was approved on a 4/0 roll call vote, Commissioner Fowler was absent: AYES: Commissioners Arnold, Brown, Keen and Chair Guthrie NOES: None ABSENT: Commissioner Fowler I The foregoing resolution was adopted this 7th day of May 2003. I DISCUSSION ITEMS: None. PLANNING COMMISSION ITEMS AND COMMENTS: None. COMMUNITY DEVELOPMENT DIRECTOR COMMENTS AND FOLLOW-UP: None. TENTATIVE ITEMS: None. ADJOURNMENT: There being no further business before the Commission, the meeting was adjourned at 8:15 p.m. on a motion by Commissioner Arnold seconded by Chair Guthrie and unanimously carried. , ~, -~._._-- 11.a. MEMORANDUM TO: CITY COUNCIL FROM: DON SPAGNOLO, DIRECTOR OF PUBLIC WORKS I CITY ENGINEER ch6 SUBJECT: CONSIDERATION OF ESTABLISHING A JOINT POWERS AUTHORITY ("JPA") FOR MANAGEMENT OF LOPEZ DAM AND WATER TREATMENT PLANT DATE: APRIL 13, 2004 RECOMMENDATION: It is recommended the Council provide input and direction to staff and/or Council Member Runels, the City's representative on the San Luis Obispo Flood Control and Water Conservation District Zone 3 Advisory Committee. FUNDING: There is no fiscal impact at this time. However, future funding expenditures may be required if the Council desires to establish a JPA to manage the Lopez Facilities. DISCUSSION: On March 23, ~004, Council Member Runels requested that the Council discuss a request made to the San Luis Obispo Flood Control and Water Conservation District Zone 3 Advisory Committee to consider establishing a JPA to manage the dam and the water treatment facilities at Lopez Lake. The Zone 3 Committee advises the County Board of Supervisors on flood control and water issues including the dam and water treatment facilities. The City of Arroyo Grande is a 50.55% participant in the Lopez Dam and Water Treatment Plant along with the Cities of Pismo Beach, Grover Beach and the Oceano Community Services District. On March 18, 2004, the issue of establishing a JPA was raised at the regular meeting of the Zone 3 Advisory Committee. The dam and the water treatment facilities are currently managed by the Utilities Division of the County Public Works Department. Staffing for these facilities includes several full time staff members as well as part time laboratory and engineering staff that also work on other County facilities. The Lopez Lake Recreation facilities are managed by the. County Department of General Services. Attachment: 1. Zone 3 March 18, 2004 Draft Meeting Notes -- SAN LUIS OBISPO COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT ZONE 3 Agenda Item III - March 18, 2004, Meeting Notes - draft - Meeting was called to order at 6:30 PM by Chairman Runels. Members in attendance were: Tom Runels, City of Arroyo Grande Dave Angello, Oceano CSD Ron Arnoldsen, City of Grover Beach Bill Rabenaldt, City of Pismo Beach. Brian Talley, Agriculture Jim Garing, Member at Large Also in attendance were: Will Clemens, SLO County John Beaton, SLO County Straith Zanartu, SLO County Don Melin, SLO County Phil Davis, OCSD George Edes, Pismo Beach Notes on the meeting held January 15th were approved with Dave Angello abstaining as he was not in attendance in January. Note that the Committee approved the November 20, 2003, meeting notes at the January meeting. Recreation Report - Don Melin touched on the highlights from the rec report as included in the meeting packet. He reported slow progress on remodeling the bathrooms that were damaged in a fire over a year ago, noting difficulties in dealing with the insurance company as contributing to the delays. Operations Report - Christine Ferrara reported that the membrane pilot plant is underway at Lopez and that the T AC considered the treatment capacity for the upgraded plant. She explained that a capacity of 6.7 MGD would allow us to meet contractual deliveries, to deliver surplus supplies, and to provide make-up flows during State Water outages. The Committee generally concurred that it is worthwhile to provide approximately 400 sf in the membrane building to provide for this possible future capacity . She also reported that the Habitat Conservation Plan was approved by the Board, has been submitted to the resource agencies, and will be presented to the Zone 3 governing boards/councils after April 19th. Ron Arnoldsen asked if Zone 3 could get to a point where they refuse to commit more water for habitat releases. Christine pointed out that we seek an incidental take permit and that our demeanor with the agencies will be to make in-stream improvements first, then propose more releases after the benefits of that have been exhausted. Tom Runels voiced some skepticism of the manner in which the safe yield was calculated and reiterated the Committee's position that providing water to people is our primary goal. .. ..--"._._-_._--_.,--,--~.~..~~--,-_..__._.----_....~----~-- .~._._~->-.__..__._- FY 04/05 Budget - Will Clemens presented the proposed budget including the status of all budget categories such as the plant upgrade and seismic remediation funds in addition to the agency billing summaries. Will mentioned establishing a reserve fund for the plantlHCP activities and Tom Runels pointed out that some revenues come from property owners that are outside of the urban areas, noting that this revenue should not fund treatment plant activities. Will agreed to look into that. Jim Garing commented that it was good to see no forecast expenditures on the hydroelectric plant. He moved approval of forwarding the proposed FY 04/05 budget to the Board of Supervisors; Ron Arnoldsen seconded the motion; passed unanimously. Plant Upgrade - Christine reported briefly on the status of the plant upgrade. She shared the initial outcome of the value engineering efforts, noting that the team accepted two recommendations (ammonia tank sizing and electrical disconnects) and that future use of the chemical building is under consideration. Brown & Caldwell's suggestions to increase cost estimating contingencies was noted but not adopted. Jim Garing asked if there were a down-side to increasing the cost' estimate and she responded no. The Committee's general input to the design team is that it may be to our advantage to aim high in estimating costs until we proceed further into design. George Edes of Pismo Beach said that RWQCB staff increased their wastewater SRF loan amount based on the bids they received, observing that this may be the case with the water program. DHS staff indicate a $20 million cap on SRF loans. RMC Contract - RMC's contract for project management services was considered. Jim Garing noted the value in keeping an experienced, proven firm on board and moved to forward the contract to the Board of Supervisors. Bill Rabenaldt seconded the motion. Dave Angello pointed out the benefits of entertaining proposals. Motion passed five to one with Dave Angello dissenting. JPA Governance - The Committee discussed the joint powers authority form of governance of the Zone 3 system. Ron Arnoldsen remains open to considering the pros and cons of such a governance, noting similarities with the South County Sanitation District form of governance. He sees the value in consultant management of Zone 3 and in taking authority away from the Board and bringing it locally. Tom Runels understood that the County Flood Control & Water Conservation District must remain the responsible entity at least until such time that the Davis-Gruntsky recreation bonds were paid off (perhaps in 2006/07?). Christine noted that staff's role in such cases is to provide information but not to oversee the study of JPA vs flood control district governance and not to take a position. Bill Rabenaldt reiterated his council's position that Pismo Beach does not see the value of JPA formation at this time. Brian Talley observed that County staff serves agricultural's purposes well and that a JPA would have to absorb a lot of overhead that the current structure provides for. The item will be agendized for the May meeting. Meeting was adjourned at 7:40 pm. Submitted by Christine Ferrara, Utilities Division Manager ~-_..~._--