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Minutes 2005-02-22 MINUTES REGULAR MEETING OF THE CITY COUNCIUREDEVELOPMENT AGENCY TUESDAY, FEBRUARY 22, 2005 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. CALL TO ORDER Mayor/Chair Ferrara called the Regular City CounciVRedevelopment Agency meeting to order at 7:00 p.m. 2. ROLL CALL City CounciVRDA: CounciVBoard Members Dickens, Guthrie, Arnold, Mayor Pro TemlVice Chair Costello and Mayor/Chair Ferrara were present. City Staff Present: City Manager Adams, City Attomey Carmel, Director of Administrative Services/City Clerk Wetmore, Chief of Police TerBorch, Director of Financial Services Pillow, Director of Public Works/CIty Engineer Spagnolo, Associate Planner Heffemon, Assistant Planner Foster, and Planning Intern Andrew Bursan. 1... FLAG !iALUTE Members of Boy Scout Troop 26 led the Flag Salute. 4. INVOCATION Jean Bowser, Bahai Faith, delivered the invocation. 5. SPECIAL PRESENTATI,9NS 5.a. Mayor's Commendation Recognizing Larry Sc:hmldt for Outstanding S.....ice and COntribution. to the City of Arroyo Grande Organization and Community a. Building Official with the City of Arroyo Grande Mayor Ferrara presented a Mayor's Commendation to Larry Schmidt for his outstanding service and contributions to the City of Arroyo Grande as Building Official with the City of Arroyo Grande. 6. AGENDA REVIEW 6.a. Resolution. and Ordinances Read In TItle Only Council Member Amold moved, Council Member Dickens 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. CI"(JZENS'!NPVT, COWlENTS. At.tP SUGGES110NS Jerrv Bun!n. Govemment Affairs Director, Home Builders Association of the Central Coast, submitted a letter for the record (on file in the Administrative Services Department) requesting extra notification beyond what is required by State law to review any documentation concerning proposed increases to the City's development impact fees. Garv Andreini, Cafe Andreini, said that word is out that a large well-known coffee retailer was I interasted in opening. a coffee business in the Village Center. He requested to be notified of any hearings regarding a request for establishment of a new coffee business in the Village. I , I - _..~_._- CITY COUNCIUREDEVELOPMENT AGENCY MINUTES FEBRUARY 22, 2005 PAGE 2 8. CONSEtfT AGENDA Director of Public Works Spagnolo responded to questions from Mayor Ferrara and Council Member Dickens regarding Item 8.c. relating to acceptance of easements for Tract 2207, Vista Del Mar. Council Member Guthrie moved, and Council Member Dickens seconded the motion to approve Consent Agenda Items 8.a. through 8.1., with the recommended courses of action. City Attorney Carmel reed the title of the Ordinance in Item 8.d. The motion carried on the following roll-call vote: AYES: Guthrie, Dickens, Arnold, Costello, Ferrara NOES: None ABSENT: None a.a. Cult Dlabursement Ratification. ActIon: Ratified the listings of cash disbursements for the period February 1, 2005 - February 15, 2005. a.b. COnsideration of Statement of Investment Deposits. ActIon: Received and filed the report of current investment deposits as of January 31, 2005. a.c. COnsideration of Acceptance of Easements, Right of Way and Public Improvements for Tract 2207 - Vista Del Mar - JH Land Partnership. ActIon: 1) Accepted the public improvements, as constructed, that were conditioned for Tract 2207; 2) Adopted Resolution No. 3812, "A Resolution of the City Council of the City of Arroyo Granda Accepting Certain Easements, Rights of Way and Related Improvements within Tract 2207"; 3) Adopted Resolution No. 3813, "A Resolution of the City Council of the City of Arroyo Grande Accepting Certain Easements, Rights of Way and Related Improvements Off.site of Tract 2207"; 4) Continue to reject, without prejudice as to future acceptance, the offer of dedication for road purposes over Lot No. 40; and 4) Accepted the 10% warranty security in the amount of $350,320.40. 8.d. eonslderatlon of Adoption of an Ordinance Amending the ZonIng _ to Rezone Certain Properties for eonslstency with the General Plan (Development Code Amendment 040006). ActIon: Adopted Ordinance No. 564, "An Ordinance of the City Council of the City of Arroyo Grande Amending the Zoning Map to Rezone Certain Properties for Consistency with the General Plan (Development Code Amendment 04-006)". a.e. COnsideration of Adoption of a Resolution Approving a One-Year TIme extension for Conditional Use Permit 98-013 and Variance 01-OO1j Camino M.cado and West Branch Streetj Appllecl for by Stephen Cool. ActIon: Adopted Resolution No. 3814, "A Resolution of the City Council of the City of Arroyo Grande Approving a One-Year Time Extension for Conditional Use Permit 99-013 and Variance 01-001; Camino Mercado and West Branch Street; Applied for by Stephen Coor. a.f. COnsideration of Adoption of a Resolution Approving a Ona-Year TIme Extension for Amended COnditional Use Permit 03-004j 1220 Ferroll Avenuej Applied for by Coastal Chrlatlan School. Action: Adopted Resolution No. 3815, "A Resolution of the City Council of the City of Arroyo Granda Approving a One-Year Time Extension for Amended Conditional Use Permit 03-004; 1220 Farroll Avenue; Applied for by Coastal Christian SchooI". CITY COUNCIUREDEVELOPMENT AGENCY MINUTES FEBRUARY 22, 2005 PAGE 3 9. PUBLIC HEARINGS 9.a. COnsideration of Appeal of Planning Commission Interpretation that Auto Parts Sales Without Installation Services Is not an Allowed Use In the Gntway Mixed- Use (GMU) Zoning District Assistant Planner Foster presented the staff report and recommended the Council adopt a Resolution denying the appeal and upholding the Planning Commission's interpretation that auto parts sales without installation services is not an allowed use in the Gateway Mixed-Use (GMU) zoning district. Mayor Ferrara opened the public hearing. Johan Scharin, appellant, commented that since purchasing the property approximately two years ago, he has been able to fill most of the vacant spaces; however, it has been difficult to fill the ramaining spaces. He sta~ed the building in question has been vacant for five years and there have been extensive marketing efforts to find a tenant. He commented that as a site for an auto parts ratailer, this site sits about 200-300 feet back from Grand Avenue and is an in-line shopping center space, therefore he felt the use was appropriate. He referred to previous discussions and concems expressed about customers changing oil in the parking lot and commented that other retailers in the center sell motor oil and felt that should not be a factor to deny the use. He also commented on the time and money spent to look for an appropriate way to fill in the retention basin without success; however, they are still willing to work with staff on this issue to improve the site. He stated that due to the problems with the location and layout of the center, it was difficult to attract tenants, and tax revenues and rent was being lost. He commented that constructing another building in the location of the retention basin with the existing building still vacant would become a burden. He requested the Council consider an auto parts sales retailer without installation as an acceptable use. Upon hearing no further public comments, Mayor Ferrara closed the public hearing. Mayor.Ferrara referred back to an earlier application through which AutoZone wanted to locate across the street. He recalled that when the Council denied that request, there was a focus on the issue of service uses adjacent to a retail outlet. He stated that he thought the language regarding allowable uses along the Gateway segment of Grand Avenue had been updated, and that auto parts stores would not be allowed in the Gateway section of the City. He said that in looking at other auto parts stores, working on vehicles after purchasing parts is common behavior and if it was prohibited, it would be difficult to regulate. He commented that within a linear mile, there is a line of auto parts stores along Grand Avenue and adding another store in the middle would not generate additional sales tax, but would divert sales from other stores. He emphasized the intent for the Gateway segment was to create an environment that welcomes pedestrian traffic. He acknowledged the appellant's difficulty in attracting tenants; however, he referred to a recent demographic and marketing study undertaken by the City and said he would endorse an aggressive campaign to use the study results to assist in attracting more desirable tenants to this Center. He supported the Planning Commission's interpretation that auto parts sales without installation services is not an allowed use in the Gateway Mixed-Use (GMU) Zoning District. , , CITY COUNCIUREOEVELOPMENT AGENCY MINUTES FEBRUARY 22, 2005 PAGE 4 Council Member Arnold acknowledged the appellanfs difficulties in securing a tenant for this vacancy; however, he had looked at the center and the specific location and the City's desire to upgrade this area. He said that allowing an auto parts store into this Center would not achieve that goal and supported the Planning Commission's interpretation and decision. Council Member Dickens asked for a status update on the Buxton Company retail study which was referred to eartier and when the Council would receive the results of the study. City Manager Adams responded that the study had been completed, a draft list had been prepared, and staff had engaged in ongoing discussions with the appellant to provide retail contacts from that list. He stated that staff had received a final list and The Buxton Company is preparing final information packets to send out to retailers with letters. Additionally, staff was working independantly with prospective retailers to direct them to this center. In response to concerns expressed by Council Member Dickens conceming economic impacts, City Manager Adams stated he would have to analyze the City's Economic Development Strategy to determine potential economic impacts. Council Member Dickens stated that he had been opposed to approving an auto parts store when it was proposed across tha street in a new development facing Grand Avenue. He acknowledged that this situation was differant, with a vacancy within an existing shopping center set back from Grand Avenue, and that there may be an obligation to move forward. He said he could not support the Planning Commission's interpretation and would uphold the appellant's appeal. Council Member Guthrie commented that when this issue was discussed at the Planning Commission level, the concems expressed were related to the installation component. He stated he looked at auto parts sales as any other retail activity; however, he did not see this use as appropriate on the street frontage where the City was trying to develop a specific pedestrian oriented streetscape. He commented on mixed use zoning where pacIestrian orientation is encouraged; however, it also encourages providing certain services adjacent to residential uses. He supported locating an auto parts store in this area of the City as long as it wasn't located directly on the street frontage. Mayor Pro Tem Costello clarified that the issue was whether auto parts sales without installation services is or is not an allowed use in the Gateway Mixed Use District. He stated that at the specific location proposed, it was not in the direct line of sight, was not intrusive, and may be a j good location for tha proposed use. However, he stated if this use was allowed at this location, it would allowed in other Gateway Mixed Use areas which was not desired. He supported the Planning Commission's interpretation that auto parts stores without installation is not an allowed use in the Gateway District; however, he would support making it an allowed use subject to a Conditional Use Permit. He also asked staff if thera were any mechanisms that could be utilized to enforce the prohibition of installation activities. City Manager Adams responded that the Council cOuld adopt an Ordinance prohibiting repair and maintenance of vehicles in commercial j parking lots, which could then be enforced by the Police Department. ,ei In response to a question by Council Member Guthrie, staff clarified that there was also a "PED" zoning designation in the Development Code, which does not permit certain uses in pedestrian , oriented storefront locations on ground floors facing E. Grand Avenue. 1 Mayor Pro Tern Costello moved to 1) Adopt a Resolution Denying Appeal 05-002 and Upholding j the Planning Commission's Interpretation that Auto Parts Sales Without Installation Services is 1 1 ; CITY COUNCIUREOEVELOPMENT AGENCY MINUTES FEBRUARY 22, 2005 PAGE 5 not an Allowed Use in the Gateway Mixed-Use (GMU) Zoning District; 2) To direct staff to return to Council with a Development Code Amendment that allows auto parts sales without installation as an allowable use in the Gateway and Fair Oaks Mixed Use Districts subject to a Minor Use Permit (MUP/PED), but not within 200 feet of E. Grand Avenue; and 3) To diract staff to return to Council with an Ordinance prohibiting repair and maintenance of vehicles in commercial parking lots within the City. Council Member Guthrie asked for clarification that Mayor Pro Tam Costello meant Minor Use Permit instead of Conditional Use Permit. Mayor Pro Tam Costello said he did say Minor Use Permit, as that was the designation for other pedestrian oriented uses. Council Member Guthrie seconded the motion, and following further discussion and clarifications, the motion passed on the following roll-call vote: AYES: Costello, Guthrie, Dickens, Arnold NOES: Ferrara ABSENT: None 9.b. COnsideration of Establishing a Historic Resources COmmittee and a Historic Designation Process for the City of Arroyo Grande. Community Development Director Strong presented the staff report and recommended the Council consider the recommendations of the Architectural Review Committee (ARC) and the Planning Commission regarding formation of a Historic Resources Committee (HRC) and establishing a process for local historic designation of eligible resources in the City of Arroyo Grande. Director Strong responded to questions from Council concerning State versus local historic designations; clarification regarding the appointment process for the HRC; and clarification conceming proposed tax relief incentives. Mayor Ferrara opaned the public hearing. The following members of the public spoke in support of the formation of a Historic Resources Committee and the establishment of a process for designating local historic resources: Chuck Fellows. Arroyo Grande resident, ARC member for four years, current Planning Commissioner, and Chairman of Preserve the Village. i Jan Scott. Arroyo Grande resident and Curator of the South County Historical Society. ,) Gordon Bennett, Arroyo Grande resident. , , Susan Aores, Arroyo Granda resident. Upon hearing no further public comments, Mayor Ferrara closed the public hearing. I Council comments included support for creating a Historic Resources Committee (HRC) with defined roles and responsibilities; acknowledgement that there are many qualified people in the community available to serve on the HRC; support for the development of criteria for designation of local historic resources; support for creating financial incentives for historic restoration; a il suggestion that the HRC be expanded and not limited to five (5) people; another suggestion that the HRC should have structure as a core group with the ability to create an ad-hoc element; and :~ a suggestion for an amendment in the policy language as follows: "Owners of resources .~ recommended or nominated by the HRC for inclusion on a local historic register BAswls must be j , notified". I ! j i CITY COUNCIUREOEVELOPMENT AGENCY MINUTES FEBRUARY 22, 2005 PAGE 6 Mayor Pro Tem Costello moved to direct staff to develop the appropriate documents for consideration by the Council at a future meeting for the establishment of a Historic Resources Committee (HRC) and the establishment of a historic resource designation process including the development of criteria for local designation of historic resources; establishment of a review process for designating historic resources for listing on a local register; the expansion and update of the 1991 Historic Resource Survey; and the creation of incentives for historic preservation, restoration and reuse. Council Member Amold seconded the motion, and on the following roll call vote: AYES: Dickens, Guthrie, Costello, Arnold, Ferrara NOES: None ABSENT: None There being 5 AYES and 0 NOES, the motion is hereby dectared to be passed. Mayor Ferrara called a break at 8:47 p.m. The Council reconvened at 8:57 p.m. 9.c. COnsideration of General Plan Amendment Case No. 04-003 - HoWling Element Amendment. Associate Planner Heffemon presented the staff report and recommended tha Council adopt a Resolution approving General Plan Amendment 04-003. Staff responded to questions from Council concerning SB 1818, which made significant changes to the State's density bonus law, effective January 1, 2005. Mayor Ferrara suggested that staff ch89k with the League of California Cities Housing Task Force regarding tha status of sa 1818. He referred to the most recent general government report from the Legislative Analyst's office, which declared the original housing legislation to be an unfunded State mandate, and recommended it be eliminated or changed. He stated he saw similar characteristics with regard to an unfunded State mandate in SB 1818. ., j '1 Mayor Ferrara opened the public hearing. '1 Jerrv Rioux, representing the Housing Trust Fund, encouraged adoption of the Housing Element j , , Amendments in order to have a certified Housing Element which will allow the City to qualify for j certain State housing program funds and also to protect the City from potential lawsuits for not ,j having an adequate General Plan. Jerrv Bunin, representing Home Builders Association, stated that although he agreed that SB 1818 is complicated, he has had extensive discussions with ttle State Department of Housing I and Community Development (HCD) and gave an overview of his understanding of their interpretations of SB 1818. He suggested coming back with altemative inclusionary housing requirements that has a different incentive that appeals to builders. I Jane Sedek, stated she is purchasing property at 1136 E. Grand Avenue. Sha referred to SB 1818 which raises many questions about inclusionary housing requirements and results in more j restrictive requirements for developers. She requested the Council take more time to review SB J 1818 before approving the Housing Element. ! Pam Dennev, attomey representing S&S Homes, referred to Jasmine Place, which includes seventeen (17) affordable housing units, of which only four (4) units have been sold to date. She I I i! ! i CITY COUNCIUREOEVELOPMENT AGENCY MINUTES FEBRUARY 22, 2005 PAGE 7 spoke about how difficult it is to qualify for these units and that the affordability restrictions are onerous. Bill Sedek, 1136 E. Grand Avenue, said he was a small developer trying to build quality units. He expressed concems about the changes in the affordable housing requirements. Upon hearing no further public comments, Mayor Ferrara closed the public hearing. Council Members Guthrie, Dickens, Arnold, and Mayor Pro Tem Costello supported the Housing Element Amendments as proposed; and acknowledged that there were unknowns with regard to SB 1818; however, the City's goal is to adopt a Housing Element to be in compliance with State law. Mayor Ferrara requested the Council consider postponing the approval of this item for a short time in order to conduct further research on the potential impacts of SB 1818 and noted that the League of Califomia Cities is in the process of drafting substitute housing legislation and looking for a sponsor for the bill. He stated that he would like to defer this item until staff could receive clarification on the League's position concerning SB 1818. Council Member Arnold moved to continue this item to the next regular City Council meeting of March 8, 2005. Council Member Guthrie seconded the motion, and on tha following roll-call vote: AYES: Amold, Guthrie, Dickens, Costello, Ferrara NOES: None ABSENT: None There being 5 AYES and 0 NOES, the motion is hereby declared to be passed. 10. CONTINUED BUSINESS None. 11. NjiW BUSINEiS 11.a. COnsideration of a Resolution Establishing Speed Umlta on Huasna Road. Director of Public Works Spagnolo presented the staff report and recommended tha Council adoPt a Resolution establishing the posted speed limits at 40 mph on Huasna Road from Highway 227 to Stagecoach Road and 45 mph on Huasna Road from Stagecoach Road to the easterly City limit. Director Spagnolo and Police Chief TerBorch responded to questions from Council. Mayor Ferrara invited public comments on this item. Dean Clark, Arroyo Grande, asked questions about the results of the speed survey, expressed concems about raising the speed limit, and commented that the City should stick with the 40 mph speed limit and enforce it. PattY Walsh, Arroyo Granda, spoke about public safety issues and stated that the speed limits should be enforced as posted. -- CITY COUNCIUREOEVELOPMENT AGENCY MINUTES FEBRUARY 22, 2005 PAGE 8 Brian Tallv. emphasized the public safety issues and stated he would like to see lighted crosswalks on Huasna Road. Hearing no further public comments, Mayor Ferrara closed the public comment period. Council comments included support for adjusting the speed limits so that they can be effectively enforced; suggested finding ways to encourage reduction of speed on Huasna Road, such as installing lighted crosswalks, additional botts dots, and increased speed limit and enforcement signage. There was also a suggestion to direct staff, as well as the citizens, to send a letter to tha Court's Traffic Commissioner explaining the unique road conditions as related to public safety. Council Member Amold moved to adopt a Resolution as follows: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ESTABUSHING SPEED UIIITS ON HUASNA ROAD", and directed staff to study the potential for additional traffic calming devices near Strother Park including, but not limited to a lighted crosswalk, additional botts dots, increased signage, and drafting a letter to the Court's Traffic Commissioner relaying the concerns of the neighborhood. Council Member Dickens seconded the motion, and on the following roll call vote: AYES: Amold, Dickens, Guthrie, Costello, Ferrara NOES: None ABSENT: None There being 5 A YES and 0 NOES, the motion is hereby declared to be passed. 11.b. COnsideration of Fiscal Year 2004-05 MId-Year Budget Status Report. [COUNCIURDA] Director of Financial Services Pillow presented the staff report and recommended the CounciVRDA Board of Directors: 1) Approve detailed budget adjustments and recommendations; 2) Approve (Deny) requests for additional appropriations in the General Fund as detailed; and 3) Approve Schedules A through E included in the Mid-Year Budget Status Report. Mayor/Chair Ferrara invited public comments on this item. No public comments were received. Following CounciVBoard comments, Mayor Pro TemlVice Chair Costello moved to 1) Approve detailed budget adjustments and recommendations; 2) Approve requests for additional appropriations in the General Fund as detailed; and 3) Approve Schedules A through E included in the Mid-Year Budget Status Report. CounciVBoard Member Dickens seconded the motion, and on the following roll call vote: AYES: Costello, Dickens, Guthrie, Arnold, Ferrara NOES: None ABSENT: None There being 5 A YES and 0 NOES, the motion is hereby declared to be passed. CITY COUNCIUREOEVELOPMENT AGENCY MINUTES FEBRUARY 22, 2005 PAGE 9 12. CITY COUNCIL REPORTS a. MAYOR TONY M. FERRARA: (1) San Luis Obispo COuncil of Governmenta/San Luis Obispo Regional Transit Authority (SLOCOG/SLORT A). Reported on impacts to transportation and transit funding for San Luis Obispo County, which include the BriscolHalcyon/101 Intersection and the EI Campo/101 Intersection project. Processing of these projects has cessed until funding is restored, possibly in 2008 or beyond. (2) South San luis Obispo COunty Sanitation DIstrict (SSLOCSD). Discussed administrative and maintenance issues; reported that there is an upcoming meeting relating to the status of the Sanitation District in the Zone 1/1 A assessments for Arroyo Grande Creek flood control area. (3) Other. 1) Attended Mayor's meeting in Morro Bay whare Assembly Member Blakeslee presented information on legislation he is going to sponsor. 2) Attended League of Califomia Cities Channel Counties meeting. Will distribute information shared at that meeting relating to upcoming meetings and events. b. MAYOR PRO TEM JOE COSTELLO: (1) . Zone 3 Wstar Advisory Board. No report. Next meeting is March 17"'. (2) COunty Water Resources AdvIsory COmmittee (WRAC). Approved goals for upcoming year. (3) Air Pollution COntrol District (APeD). No repot. Next meeting is March 2301. (4) Other. Attended Fire Department Oversight Committee; cooperative efforts with the City of Grover Baach continue to go well; training is continuing to improve, with participation from Oceano Community Services District Rre Department. Discussed City of Pismo Beach request for joint study to examine cooperative efforts with that City. c. COUNCIL MEMBER JIM DICKENS: (1) South COunty Area Transit (SCAT). Reviewed budget assumptions; raviewed item presented by City of Grover Beach for transportation improvements relating to their Ramona Gardens Community and Cultural Specific Plan. Reported that SCAT will now be conducting their meetings on a quarterly basis. (2) South County Youth Coalition. Presentation received on the First Five Funding Program for Pre-School in Oceano. (3) Other. None. d. COUNCIL MEMBER JIM GUTHRIE: (1) economic Vitality Corporation (EVC). No report. Next meeting is February 2301. (2) Other. None. e. COUNCIL MEMBER ED ARNOLD: (1) Integrated Waste Managament Authority Board (IWMA). No report. (2) California Joint Powera Insurance Authority (CJPIA). No report. (3) Other. None. .1 1 J 13. CITY COUNCIL MEMBea ITEMS: ~ " None. 1 ii i j CITY COUNCIL/REDEVELOPMENT AGENCY MINUTES FEBRUARY 22, 2005 PAGE 10 14. CITY MANAGER ITEMS: None. 15. COUNCIL COMMUNICATIONS: Mayor Ferrara reported that he attended the Zone 1/1A meeting today to discuss the DWR Work Plan on the Arroyo Grande Creek. 16. STAFF COMMUNICATIONS: City Manager Adams announced that a groundbreaking ceremony for the Rotary Bandstand project would be held Wednesday, February 23rd at noon; and a dedication ceremony would be held at the Arroyo Grande Police Department's Community Resource Center at 2:00 p.m. He also announced that a date and time had been confirmed for April 1, 2005 at 3:00 p.m. to meet with Assembly Member Blakeslee. 17. COMMUNITY COMMENTS AND SUGGESTIONS: None. j 18. ADJOURNMENT ! \ Mayor/Chair Ferrara adjourned the meeting at 11:10 p.m. I '~L Tony Ferrar . or/Chair ATTEST: / J,~ ifi Kelly We or City Clerk/Agency Secretary (Approved at CC Mtg 3-8-05 ) I I , -- __m _ --~~