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Agenda Packet 2009-11-10 Ý·¬§ Ý±«²½·´ ß¹»²¼¿ Tony Ferrara, Mayor/Chair Steven Adams, City Manager Timothy Carmel, City Attorney Joe Costello, Mayor Pro Tem/Vice Chair Kelly Wetmore, City Clerk Jim Guthrie, Council/Board Member Ed Arnold, Council/Board Member Chuck Fellows, Council/Board Member AGENDA SUMMARY CITY COUNCIL/REDEVELOPMENT AGENCY MEETING TUESDAY, NOVEMBER 10, 2009 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 COUNCIL/RDA 3. FLAG SALUTE: BROWNIE TROOP 40734 4. INVOCATION : DR. MAYER-HARNISH BAHAI FAITH 5. SPECIAL PRESENTATIONS: None. 6. AGENDA REVIEW : 6a.Move that all ordinances presented for introduction or adoption be read by title only and all further readings be waived. AGENDA SUMMARY – NOVEMBER 10, 2009 PAGE 2 7. COMMUNITY COMMENTS AND SUGGESTIONS: This public comment period is an invitation to members of the community to present issues, thoughts, or suggestions on matters not scheduled on this agenda. Comments should be limited to those matters that are within the jurisdiction of the City Council. The Brown Act restricts the Council from taking formal action on matters not published on the agenda. In response to your comments, the Mayor or presiding Council Member may: Direct City staff to assist or coordinate with you. A Council Member may state a desire to meet with you. It may be the desire of the Council to place your issue or matter on a future Council agenda. Please adhere to the following procedures when addressing the Council: Comments should be limited to 3 minutes or less. Your comments should be directed to the Council as a whole and not directed to individual Council members. Slanderous, profane or personal remarks against any Council Member or member of the audience shall not be permitted. 8. CONSENT AGENDA : The following routine items listed below are scheduled for consideration as a group. The recommendations for each item are noted. Any member of the public who wishes to comment on any Consent Agenda item may do so at this time. Any Council Member may request that any item be withdrawn from the Consent Agenda to permit discussion or change the recommended course of action.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. Cash Disbursement Ratification 8.a. (KRAETSCH) Recommended Action: Ratify the listing of cash disbursements for the period October 16, 2009 through October 31, 2009. Consideration of Approval of Minutes 8.b. (WETMORE) Recommended Action: Approve the minutes of the Regular City Council/Redevelopment Agency meeting of October 27, 2009, as submitted. Consideration of Resolution Authorizing PacificWest Energy Solutions, Inc. to 8.c. Submit Applications on behalf of the City for Funding from the California Energy Commission (ADAMS) Recommended Action: 1) Adopt a Resolution authorizing PacificWest Energy Solutions, Inc. to submit applications on behalf of the City for funding from the California Energy Commission; and 2) Authorize the Mayor to execute a Memorandum of Understanding with PacificWest to prepare an energy audit on City facilities and to provide consultant services associated with the Resolution. AGENDA SUMMARY – NOVEMBER 10, 2009 PAGE 3 8. CONSENT AGENDA (cont’d): Consideration of a Resolution Approving an Application for Proposition 40 and 8.d. 84 Urban Forestry Grant Program Funds for Tree Planting (PERRIN) Recommended Action: Adopt a Resolution approving the filing of an application for Proposition 40 and 84 Urban Forestry Grant Program Funds for tree planting. Consideration of Adoption of a Resolution Approving Application for Proposition 8.e. 40 and 84 Urban Forestry Grant Program Funds for a Tree Inventory (PERRIN) Recommended Action: Adopt a Resolution approving the filing of an application for Proposition 40 and 84 Urban Forestry Grant Program Funds for a tree inventory. Consideration to Award Bid and Approve a Contractor Services Agreement for 8.f. Uniform and Related Services (PERRIN) Recommended Action: 1) Award the bid and authorize the Mayor to execute a 3-year Contractor Services Agreement with AmeriPride Uniform Services; and 2) Appropriate $300 from the Sewer Fund. Consideration of a First Amendment to the Agreement for Consultant Services 8.g. with Garing Taylor & Associates for Well No. 10 Phase II Project, PW 2010-02 (MCCLISH) Recommended Action: 1) Approve a First Amendment to the Agreement for Consultant Services with Garing Taylor & Associates for amount not to exceed $54,180 for additional design expenses and support services during construction; and 2) Authorize the City Manager to execute the First Amendment. Consideration of Third Amendment to Agreement with North Coast Engineering 8.h. for the El Camino Real Improvement Project (MCCLISH) Recommended Action: 1) Approve a Third Amendment to the Agreement for Consultant Services with North Coast Engineering to increase the “not to exceed” amount by $40,508 to include additional design services on the El Camino Real Retaining Wall, El Camino Real Resurfacing, and El Camino Real/Chilton Street Waterline Capital Improvement Projects (PW-2008-09); and 2) Authorize the Mayor to execute the amendment. Consideration of Temporary Use Permit Case No. 09-024 Authorizing the Closure 8.i. th of City Streets for the 7 Annual Arroyo Grande Village Improvement Association Christmas Parade, November 29, 2009 (MCCLISH) Recommended Action: Adopt a Resolution approving Temporary Use Permit Case th No. 09-024 for the 7 Annual Arroyo Grande Village Improvement Association Christmas Parade. AGENDA SUMMARY – NOVEMBER 10, 2009 PAGE 4 9. PUBLIC HEARINGS: Continued Public Hearing - Consideration of Centennial Plaza Project and a 9.a. Purchase and Sale and Improvement Agreement for Acquisition of Property at 300 East Branch Street and Sale and Development of City Property at 200 and 208 East Branch Street and the Adjacent Parking Area (ADAMS) Recommended Action: 1) Approve a Resolution adopting a Negative Declaration with Mitigation Measures; 2) Approve the Centennial Plaza preliminary design concept; 3) Approve a contract with RRM Architects for final design of the Centennial Plaza project for a not to exceed amount of $44,000; 4) Approve a Purchase and Sale and Improvement Agreement with NKT Commercial for acquisition of property at 300 East Branch Street, sale of City property at 200 East Branch Street, 208 East Branch Street and the parking area in between, development of a 5,700 square foot commercial building at Short Street and East Branch Street, and adaptive reuse of the 208 East Branch Street building; 5) Select Alternative #3 as the preferred alternative for the NKT Commercial proposed project; and 6) Authorize the City Manager to execute documents to obtain debt financing of up to $1.2 million for costs associated with acquisition of the 300 East Branch Street property through the United States Department of Agriculture (USDA) Rural Development Community Facilities low- interest loan program. Consideration of a Resolution Amending a Condition of Approval for Tentative 9.b. Tract Map No. 2792 (VTTM 05-003 and PUD 05-007) for Property Located near Fair Oaks Avenue (East of Arroyo Grande Community Hospital), Applied for by Innovative Housing Solutions, Inc. (MCCLISH) Recommended Action: Adopt a Resolution amending a condition of approval for Vesting Tract Map 2792 to accept housing in-lieu fees instead of the provision of deed restricted units to meet affordable housing requirements. Consideration of Purchase and Sale Agreement and Joint Escrow Instructions for 9.c. Sale of Property on Courtland Street South of East Grand Avenue to Peoples’ Self Help Housing [RDA/CC] (ADAMS) Recommended Action: Approve a Purchase and Sale Agreement and Joint Escrow Instructions to sell the vacant property owned by the Agency on Courtland Street south of East Grand Avenue to Peoples’ Self Help Housing and a Regulatory Agreement transferring a deed restriction to the property from property owned by Peoples’ Self Help Housing on El Camino Real that will require the property be used for affordable housing. 10. CONTINUED BUSINESS: None. AGENDA SUMMARY – NOVEMBER 10, 2009 PAGE 5 11. NEW BUSINESS: Consideration of 11.a. Groundwater Monitoring and Test Findings and Adoption of Interim Urgency Ordinance Establishing a 45 Day Moratorium on the Approval of Development Projects (ADAMS) Recommended Action: 1) Review groundwater monitoring and testing results; 2) Adopt an Interim Urgency Ordinance establishing a 45-day moratorium on the approval of development projects; 3) Authorize the Mayor to sign a letter in conjunction with Grover Beach, Ocean and Pismo Beach requesting the County make available excess State water at the Lopez turnout on a temporary and emergency basis; and 4) Direct staff to seek public input and prepare recommendations to address water supply and potential seawater intrusion issues. 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. None. 13. CITY MANAGER ITEMS: The following item(s) are placed on the agenda by the City Manager in order to receive feedback and/or request direction from the Council. No formal action can be taken. None. 14. COUNCIL COMMUNICATIONS: Correspondence/Comments as presented by the City Council. 15. STAFF COMMUNICATIONS: Correspondence/Comments as presented by the City Manager. 16. COMMUNITY 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 AGENDA SUMMARY – NOVEMBER 10, 2009 PAGE 6 ************************ All staff reports or other written documentation, including any supplemental material distributed to a majority of the City Council within 72 hours of a regular meeting, relating to each item of business on the agenda are available for public inspection during regular business hours at City Hall, 214 E. Branch Street, Arroyo Grande. 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 Legislative and Information Services Department at 805-473- 5414 as soon as possible and at least 48 hours prior to the meeting date. ************************** This agenda was prepared and posted pursuant to Government Code Section 54954.2. Agenda reports can be accessed and downloaded from the City’s website at www.arroyogrande.org ********************* City Council/Redevelopment Agency Meetings are cablecast live and videotaped for replay on Arroyo Grande’s Government Access Channel 20. The rebroadcast schedule is published at www.slo-span.org. ß¹»²¼¿ ×¬»³ èò¿ò Ð¿¹» ï ß¹»²¼¿ ×¬»³ èò¿ò Ð¿¹» î ß¹»²¼¿ ×¬»³ èò¿ò Ð¿¹» í ß¹»²¼¿ ×¬»³ èò¿ò Ð¿¹» ì ß¹»²¼¿ ×¬»³ èò¿ò Ð¿¹» ë ß¹»²¼¿ ×¬»³ èò¿ò Ð¿¹» ê ß¹»²¼¿ ×¬»³ èò¿ò Ð¿¹» é ß¹»²¼¿ ×¬»³ èò¿ò Ð¿¹» è ß¹»²¼¿ ×¬»³ èò¿ò Ð¿¹» ç ß¹»²¼¿ ×¬»³ èò¿ò Ð¿¹» ïð ß¹»²¼¿ ×¬»³ èò¿ò Ð¿¹» ïï ß¹»²¼¿ ×¬»³ èò¿ò Ð¿¹» ïî ß¹»²¼¿ ×¬»³ èò¿ò Ð¿¹» ïí ß¹»²¼¿ ×¬»³ èò¿ò Ð¿¹» ïì ß¹»²¼¿ ×¬»³ èò¿ò Ð¿¹» ïë THIS PAGE INTENTIONALLY LEFT BLANK ß¹»²¼¿ ×¬»³ èò¿ò Ð¿¹» ïê MINUTES REGULAR MEETING OF THE CITY COUNCIL/REDEVELOPMENT AGENCY TUESDAY, OCTOBER 27, 2009 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. CALL TO ORDER Mayor/Chair Ferrara called the Regular City Council/Redevelopment Agency meeting to order at 7:05 p.m. 2. ROLL CALL City Council/RDA: Council/Board Member Chuck Fellows, Council/Board Member Jim Guthrie, Mayor Pro Tem/Vice Chair Joe Costello and Mayor/Chair Tony Ferrara were present. Council/Board Member Ed Arnold was absent. City Staff Present: City Manager Steven Adams, City Attorney Tim Carmel, Director of Legislative and Information Services/City Clerk Kelly Wetmore, Director of Administrative Services Angela Kraetsch, Chief of Police Steve Annibali, Fire Chief Michael Hubert, and Community Development Director Teresa McClish. 3. FLAG SALUTE Members of Cub Scout Pack 13, Den 8 led the Flag Salute. 4. INVOCATION Pastor Robert Banker, Open Door Church, delivered the invocation. 5. SPECIAL PRESENTATIONS None. 6. AGENDA REVIEW 6.a. Ordinances Read in Title Only. Council Member Fellows moved, Mayor Pro Tem Costello seconded, and the motion passed unanimously that all ordinances presented at the meeting shall be read by title only and all further readings be waived. 7. CITIZENS’ INPUT, COMMENTS, AND SUGGESTIONS None. 8. CONSENT AGENDA Mayor Ferrara invited members of the public who wished to comment on any Consent Agenda Item to do so at this time. John Keen , N. Elm Street, referred to Item 8.j. and expressed concern about the seriousness of the status of the City’s groundwater supply and testing results. He suggested the Council pull the item from the consent agenda to discuss the issue and emphasized the importance of educating the public about what is occurring, especially concerning potential seawater intrusion. Ed Ebee, Nipomo, agreed with Mr. Keen’s comments regarding the importance of the matter and requested an oral presentation of the report. ß¹»²¼¿ ×¬»³ èò¾ò Ð¿¹» ï Minutes: City Council/Redevelopment Agency Meeting Page 2 Tuesday, October 27, 2009 No further public comments were received. Mayor Ferrara requested that Item 8.j. be pulled and requested the City Manager to provide a brief report. Mayor Pro Tem Costello requested that Item 8.g. be pulled for comments. Action: Council Member Guthrie moved, and Mayor Pro Tem Costello seconded the motion to approve Consent Agenda Items 8.a. through 8.n., with the exception of Items 8.g. and 8.j., with the recommended courses of action. City Attorney Carmel read the full title of the Ordinance presented for adoption in Item 8.n. The motion passed on the following roll-call vote: AYES: Guthrie, Costello, Fellows, Ferrara NOES: None ABSENT: Arnold 8.a.Cash Disbursement Ratification. Action: Ratified the listing of cash disbursements for the period October 1, 2009 through October 15, 2009. 8.b.Statement of Investment Deposits. Action: Received and filed the report listing the current investment deposits for the period of September 30, 2009. 8.c.Consideration of Approval of Minutes. Action: Approved the minutes of the Regular City Council/Redevelopment Agency Meeting of October 13, 2009. 8.d. Consideration of H1N1 Pandemic and Influenza Disease Plan. Action : Approved the H1N1 Pandemic and Influenza Disease Plan. 8.e. Consideration of Acceptance of the Montego Street / Hillcrest Drive Sidewalk Improvements Project, PW 2008-07B. Action : 1) Accepted the project improvements as constructed by California Coastal Development Inc. in accordance with the plans and specifications for the Montego Street / Hillcrest Drive Sidewalk Improvements Project; 2) Directed staff to file a Notice of Completion; and 3) Authorized release of the retention, thirty-five (35) days after the Notice of Completion has been recorded, if no liens have been filed. 8.f. Consideration of Acceptance of the 2009 Slurry Seal Project, PW 2009-04. Action: 1) Accepted the project improvements as constructed by Graham Contractors Inc. in accordance with the plans and specifications for the 2009 Slurry Seal Project; 2) Directed staff to file a Notice of Completion; 3) Authorized release of the retention, thirty- five (35) days after the Notice of Completion has been recorded, if no liens have been filed; and 4) Authorized an increase in the project expenditures of $2,294.94. 8.h.Consideration of Acceptance of the Corporation Yard Steel Repair Project, PW 2009-05. Action: 1) Accepted the project improvements as constructed by Frank Calistro Inc. in accordance with the plans and specifications for the Corporation Yard Steel Repair Project; 2) Directed staff to file a Notice of Completion; and 3) Authorized release of the retention, thirty-five (35) days after the Notice of Completion has been recorded, if no liens have been filed. ß¹»²¼¿ ×¬»³ èò¾ò Ð¿¹» î Minutes: City Council/Redevelopment Agency Meeting Page 3 Tuesday, October 27, 2009 8.i.Consideration of Authorization to Use City Property and Close City Streets for the Annual Arroyo Grande Strawberry Festival on May 29 and 30, 2010 and the Annual Strawberry Stampede; Temporary Use Permit No. 09-018. Action :“A RESOLUTION OF THE CITY Adopted Resolution No. 4226 as follows: COUNCIL OF THE CITY OF ARROYO GRANDE AUTHORIZING THE USE OF CITY PROPERTY AND CLOSURE OF CITY STREETS FOR THE ANNUAL ARROYO GRANDE STRAWBERRY FESTIVAL ON MAY 29 AND 30, 2010 AND THE ANNUAL STRAWBERRY STAMPEDE; TEMPORARY USE PERMIT NO. 09-018”. 8.k. Consideration to Declare Surplus Property and Approve a Private Treaty Sale Agreement. Action:“A RESOLUTION OF THE CITY 1) Adopted Resolution No. 4227 as follows: COUNCIL OF THE CITY OF ARROYO GRANDE DECLARING AN ITEM AS SURPLUS AND AUTHORIZING ITS SALE”; and 2) Authorized the City Manager to sign the Private Treaty Sale Agreement with Bill Phelps Auction Services. 8.l.Consideration of Amendments to the City of Arroyo Grande Storm Water Management Plan. Action: 1) Approved the City’s participation in the Central Coast Regional Water Quality Control Board (RWQCB) and the Low Impact Development Center’s Joint Effort Project for the development of Hydromodification Control Criteria methodology for the Central Coast Region pursuant to the RWQCB’s October 20, 2009 letter; 2) Approved the City’s participation in the collaborative program for local municipalities for the development of Best Management Practices (BMPs) for Public Education, Public Participation and Pollution Prevention; 3) Approved the incorporation of additional requirements set forth by the RWQCB in their letter of September 15, 2009 into the Storm Water Management Plan (SWMP); and 4) Authorized the City Manager to approve minor modifications to the SWMP as required by the RWQCB in response to annual reporting and Plan implementation. 8.m. Consideration to Approve Reimbursement of the Cost of the Storm Drain Erosion Mitigation to Arroyo View LLC. Action: Appropriated the expenditure of $20,175.83 from the City Drainage Facility Fund for the mitigation of erosion at the outlet of the existing 48” Storm Drain payable to Arroyo View LLC in accordance with the Reimbursement Agreement. 8.n.Consideration to Adopt an OrdinancePrezoning a 7.2 Acre Property Adjoining the City in the Vicinity of Pearwood Avenue for the Purposes of Annexation (DCA Case No. 09-001B). Action: “AN ORDINANCE OF THE CITY Adopted Ordinance No. 614 as follows: COUNCIL OF THE CITY OF ARROYO GRANDE PREZONING A 7.2 ACRE PROPERTY ADJOINING THE CITY IN THE VICINITY OF PEARWOOD AVENUE FOR THE PURPOSES OF ANNEXATION (DEVELOPMENT CODE AMENDMENT CASE NO. 09- 001B)”. ITEMS PULLED FROM THE CONSENT AGENDA 8.g.Consideration of a Resolution Approving Funding for Open Space Protection and Management to Match Grant Funds from the San Luis Obispo County Community Fire Safe Council Grant for Fuel Modification in the James Way Habitat Area and Approving the James Way Habitat Area Fuel Modification Project. ß¹»²¼¿ ×¬»³ èò¾ò Ð¿¹» í Minutes: City Council/Redevelopment Agency Meeting Page 4 Tuesday, October 27, 2009 Recommended Action: 1) Approve the use of open space protection funds to match grant funds from the San Luis Obispo County Community Fire Safe Council; and 2) Approve the James Way Habitat Area Fuel Modification Project. Mayor Pro Tem Costello stated he wanted to bring this item to the attention of the public and commented that this is something the City has been working on with the Fire Safe Council for some time. He noted that the fuel modification project would commence in late November or December and will take two months to complete; that this was an opportunity for the City to clear a lot of the fire fuel that is in the James Way Habitat Area and will help prevent any kind of wildland fire from encroaching into the area; and that crews will be out there to reduce the fire load and clear the Habitat Area. : Action Mayor Pro Tem Costello moved, and Council Member Guthrie seconded the motion to approve Item 8.g. with the recommended courses of action. The motion passed on the following roll-call vote: AYES: Costello, Guthrie, Fellows, Ferrara NOES: None ABSENT: Arnold 8.j.Consideration of Groundwater Monitoring and Test Findings. RecommendedAction: 1) Review groundwater monitoring and testing results; and 2) Direct staff to prepare recommendations to address water supply and potential seawater intrusion issues. City Manager Adams provided a brief summary of the staff report. He stated the City of Arroyo Grande participates with Oceano, Grover Beach, and Pismo Beach in a groundwater monitoring program and that recent testing on a series of sentry wells along the coast, primarily in the Oceano area, show chemicals that indicate potential seawater intrusion. He noted that a second round of testing verified those results and that seawater intrusion can be a serious issue and threat to the groundwater supply if left unchecked. He explained the City is taking this issue seriously and is meeting with the other agencies on a bi-weekly basis to identify immediate short and long range alternatives and measures to address this. He noted that City staff had already been working on a number of measures and that a more comprehensive, detailed report and recommendations would be forthcoming at the next regular Council meeting for discussion and consideration. Council Member Guthrie requested that staff send a letter to the County requesting them to take action to identify and reactivate the lost test well near Osos Flaco Lake or drill a new one in order to include data from that location. Mayor Ferrara commented that this issue has been on the table for quite some time and a series of meetings have been held with the other agencies on a regular basis. He stated that at a meeting a few days ago, there was discussion about the sentry wells and the one in particular that had not been tested. He said there was no way of telling when those chemicals entered into that well because there hadn’t been regular testing. As a result, there was some concern about the validity of the data. He stated the groundwater issue is being taken very seriously and a number of different strategies are being reviewed to alleviate the current water issues. ß¹»²¼¿ ×¬»³ èò¾ò Ð¿¹» ì Minutes: City Council/Redevelopment Agency Meeting Page 5 Tuesday, October 27, 2009 Action: Council Member Guthrie moved, and Mayor Pro Tem Costello seconded the motion to approve Item 8.j. with the recommended courses of action. The motion passed on the following roll-call vote: AYES: Guthrie, Costello, Fellows, Ferrara NOES: None ABSENT: Arnold 9. PUBLIC HEARINGS: 9.a.Consideration of Use of State 2009-10 Citizens Option for Public Safety Funds. Chief of PoliceAnnibalipresented the staff report and recommend the Council: 1) Approve the Chief of Police’s recommendation to utilize the FY 2009-10 Citizens Option for Public Safety (COPS) Funds to continue the multi-year program for the replacement and enhancement of the Police Department’s radio communications equipment; and 2) Authorize the expenditure of $71,272 carried over from the City’s FY 2008-09 COPS Program. In response to a question by Council Member Guthrie, Chief Annibali stated that the multi-year program for the replacement and enhancement of the radio communications equipment started in 2005-06 and that this would be the second and final phase of the program. In response to a question by Mayor Ferrara, Chief Annibali stated that the equipment is state-of-the-art and was designed to enable relocation to a new facility. Mayor Ferrara opened the public hearing, and upon hearing no public comments, he closed the public hearing. Council comments included support for the use of the COPS funds for the replacement and enhancement of the Police Department’s radio communications equipment. Action: Mayor Pro Tem Costello moved to approve the Chief of Police’s recommendation to utilize the FY 2009-10 Citizens Option for Public Safety (COPS) Funds to continue the multi- year program for the replacement and enhancement of the Police Department’s radio communications equipment; and to authorize the expenditure of $71,272 carried over from the City’s FY 2008-09 COPS Program. Council Member Fellows seconded, and the motion passed on the following roll call vote: AYES: Costello, Fellows, Guthrie, Ferrara NOES: None ABSENT: Arnold 9.b.Consideration of Centennial Plaza Project and a Purchase and Sale and Improvement Agreement for Acquisition of Property at 300 East Branch Street and Sale and Development of City Property at 200 and 208 East Branch Street and the Adjacent Parking Area. Recommended Action: 1) Approve the Centennial Plaza preliminary design concept; 2) Approve a contract with RRM Architects for final design of the Centennial Plaza project ß¹»²¼¿ ×¬»³ èò¾ò Ð¿¹» ë Minutes: City Council/Redevelopment Agency Meeting Page 6 Tuesday, October 27, 2009 for a not to exceed amount of $44,000; 3) Approve a Purchase and Sale and Improvement Agreement with NKT Commercial for acquisition of property at 300 East Branch Street, sale of City property at 200 East Branch Street, 208 East Branch Street and the parking area in between, development of a 5,700 square foot commercial building at Short Street and East Branch Street, and adaptive reuse of the 208 East Branch Street building; 4) Select Alternative #3 as the preferred alternative for the NKT Commercial proposed project; 5) Approve a Resolution adopting a Negative Declaration with Mitigation Measures; 6) Reject all bids for construction of a fire sprinkler system in the 300 East Branch Street building and direct staff to solicit new bids; and 7) Authorize the City Manager to execute documents to obtain debt financing of up to $1.2 million for costs associated with acquisition of the 300 East Branch Street property through the United States Department of Agriculture (USDA) Rural Development Community Facilities low-interest loan program. City Manager Adams recommended that this item be continued to a date certain, which would be the next regular City Council meeting of November 10, 2009, when all Council Members are expected to be present. Action: Council Member Guthrie moved to continue the item to the November 10, 2009 regular City Council meeting.Council Member Fellows seconded, and the motion passed on the following roll call vote: AYES: Guthrie, Fellows, Costello, Ferrara NOES: None ABSENT: Arnold 10. CONTINUED BUSINESS: 10.a.Consideration of New Police Station Project. [CC\RDA] Chief of PoliceAnnibali presented the staff report and recommended the Council: 1) Approve the Police Station Schematic Design; 2) Authorize the City Manager to execute an Agreement for Architectural Services with BFGC Architects to prepare final design drawings and bid documents not to exceed $370,000; 3) Authorize the City Manager to execute an agreement for consultant services with A.M. Miller & Company, Inc. not to exceed $25,000 to serve as the City’s financial advisor with regard to a potential bond measure; 4) Direct staff to develop a public education program to solicit feedback regarding the project and potential June 2010 general obligation bond measure; and 5) Authorize the City Manager to submit final applications for California Investment Bank and USDA Rural Development Community Facilities low-interest loans. Craig Atkinson, bfgc Architects, presented an overview of the proposed Police Station schematic design, site plan, exterior view, exterior elevations, first floor plan, and second floor plan. Council/Board and staff comments and questions ensued concerning design, functional elements, features, cost estimates, economic trends and the current construction bid climate. ß¹»²¼¿ ×¬»³ èò¾ò Ð¿¹» ê Minutes: City Council/Redevelopment Agency Meeting Page 7 Tuesday, October 27, 2009 Mayor/Chair Ferrara invited comments from those in the audience who wished to be heard on the matter. John Keen , N. Elm Street, stated he was not in favor of the proposed location; however, he acknowledged that this location is a done deal. He referred to the property as being landlocked and suggested other alternatives, such as the potential for realigning Rodeo Drive in order to adjust the Police Station site to provide more usable space. He displayed an aerial view of the site with an example of how Rodeo Drive could be straightened. He further expressed concern with the conceptual exterior architectural design stating it was not an attractive building. He said that although the proposal may meet Development Code standards, it does not meet the intent of General Plan Land Use Policy Objective LU-12 concerning preservation of the City’s rural, small town character. He also expressed concern that the Architectural Review Committee discussed trees and landscape buffers to soften the look of the building, but did not discuss any change to the building’s design. Upon hearing no further public comments, Mayor/Chair Ferrara closed the public comment period. Council questions ensued regarding the existing Community Resource Center which could be incorporated into the new Police Station; the financial terms of the existing Fire Station bond and the proposed project costs and terms for issuance of a new bond; cost impacts to the City if the proposed bond measure did not receive voter approval; that funding from the Redevelopment Agency budget would be spent on design now to determine cost estimates and prepare bid documents; that if voter approval on the bond measure was not obtained, it would result in a delay of the project; that the proposed design schematic is a preliminary design concept which could be modified and come back for final design approval; concerns about traffic impacts if Rodeo were to be straightened and whether or not this option was feasible; acknowledgement that a new police facility is critically needed and that the interior design would accommodate the City for decades; that this is a standalone facility on W. Branch Street with no surrounding comparable buildings to design or build around; that this is a modern building that would be similar in architecture to other commercial buildings located farther north on W. Branch Street; some concern regarding the proposed bond measure and a suggestion that staff and the Council revisit the established project priorities for the local sales tax revenue as this public safety project is a much higher priority than other capital projects; that the proposal being recommended is the least expensive option; and an emphasis that there is a desire to see variations in the design of the exterior elevations. Action: Mayor Pro Tem Costello moved to: 1) Approve the Police Station Schematic Design; 2) Authorize the City Manager to execute an Agreement for Architectural Services with BFGC Architects to prepare final design drawings and bid documents not to exceed $370,000; 3) Authorize the City Manager to execute an agreement for consultant services with A.M. Miller & Company, Inc. not to exceed $25,000 to serve as the City’s financial advisor with regard to a potential bond measure; 4) Direct staff to develop a public education program to solicit feedback regarding the project and potential June 2010 general obligation bond measure; 5) Authorize the City Manager to submit final applications for California Investment Bank and USDA Rural Development Community Facilities low-interest loans; 6) Direct staff to investigate the potential to adjust the Police Station site by realigning Rodeo Drive; and 7) Direct staff to work with the ß¹»²¼¿ ×¬»³ èò¾ò Ð¿¹» é Minutes: City Council/Redevelopment Agency Meeting Page 8 Tuesday, October 27, 2009 architect to provide exterior design alternatives for the Police Station building. Council Member Fellows seconded, and the motion passed on the following roll call vote: AYES: Costello, Fellows, Guthrie, Ferrara NOES: None ABSENT: Arnold Mayor Ferrara called a break at 8:55 p.m. The Council reconvened at 9:05 p.m. 11. NEW BUSINESS: None. 12. CITY COUNCIL REPORTS a. MAYOR TONY FERRARA: (1) San Luis Obispo Council of Governments/San Luis Obispo Regional Transit Authority (SLOCOG/SLORTA). SLOCOG/SLORTA had a brief hiatus. th SLOCOG met on October 7 and discussed the Federal Economic Stimulus (competitive funding) grant applications that were submitted for the Santa Maria Bridge, Willow Road, and for Los Osos Valley Road Interchange which are unlikely to receive funding. Reported that the STIP funding would be non-existent for the next few cycles, so funding availability for all the projects currently in the pipeline is unknown. Reported that an emergency allocation to Pismo Beach was approved for the Price Street bluff erosion/stabilization project around the area of the Shore Cliff Lodge tennis courts. Reported that SHA funds ($225,000) were approved for the expansion of the Halcyon Park and Ride lot to add 17 new spaces. Announced the State attempt to take an additional $1.19 billion in transit funding, the California Transit Authority (CTA) sued the State to recover the money, it was appealed to the State Supreme Court, a decision was made in favor of the CTA, and it is now going to the US Supreme Court. The West Branch Street Rehabilitation project was approved to receive American Recovery and Reinvestment Act (ARRA) funding. (2) South San Luis Obispo County Sanitation District (SSLOCSD). Discussed issues related to the expansion of the facility; looking at a secondary clarifier; meeting with County staff regarding their proposal to charge the District for a permit, which it has never been done before. (3) Brisco/Halcyon/Hwy 101 Interchange Project Subcommittee. Have not heard back from the consultant; will be scheduling a meeting in the next few weeks. (4) Recreation Center Subcommittee. This subcommittee is currently on hiatus and has discontinued regular meetings. (5) Other. Announced that the Centennial Steering Committee meets the last Wednesday of each month. b. MAYOR PRO TEM JOE COSTELLO: th (1) Zone 3 Water Advisory Board. Met September 17; At that time, Lopez was at 50.8% capacity; have not seen figures since the recent rain. Announced that an th update on the Habitat Conservation Plan will be provided at the November 19 Zone 3 Technical Advisory Committee meeting. Received a report on the ß¹»²¼¿ ×¬»³ èò¾ò Ð¿¹» è Minutes: City Council/Redevelopment Agency Meeting Page 9 Tuesday, October 27, 2009 Treatment Plant upgrade project. Reported that raising the spillway project is still being considered. (2) Air Pollution Control District (APCD). Announced the deadline of December st 31 for obtaining permits and registration for portable and auxiliary engines of 50hp or greater. (3) Fire Oversight Committee. Met at the beginning of October; reported that the OES engine went out as part of a strike team and is being staffed with personnel from various stations. Still working on the joint dispatch study. (4) Other. None. c. COUNCIL MEMBER JIM GUTHRIE: (1) South County Area Transit (SCAT). Implemented a .25 cent fare increase to $1.25; have experienced a drop in ridership of 7% over prior year, however, over the past quarter, there has been a significant increase. Reported that SCAT is facing funding cuts, however, SCAT came in $25,000 under budget for the year. Reported on marketing plan which currently does not have any funding to implement yet. (2) Community Action Partnership. Will be the lead agency for a proposed homeless campus in San Luis Obispo; will need approval by the Airport Board. (3) California Joint Powers Insurance Authority (CJPIA). No report. (4) SLO County 10-Year Plan to End Homelessness Leadership Council. The County has put together a plan to hire a part-time contract agent to coordinate homeless services and to focus on coordinated funding opportunities and bringing the different agencies together to ensure that there are no duplicative efforts and to provide complete homeless services. (5) Tourism Committee. Unable to attend the last meeting; however, the Committee decided on a new logo design which should be unveiled soon. (6) Other. None. d. COUNCIL MEMBER ED ARNOLD: (ABSENT) (1) Integrated Waste Management Authority Board (IWMA). (2) Economic Vitality Corporation (EVC). (3) Other. e. MAYOR PRO TEM CHUCK FELLOWS: (1) County Water Resources Advisory Committee (WRAC). Unable to attend the last meeting; however, after reviewing the staff report, it appeared there was nothing relevant discussed relating to the City of Arroyo Grande. (2) Other. None. 13. CITY COUNCIL MEMBER ITEMS: None. 14. CITY MANAGER ITEMS: None. ß¹»²¼¿ ×¬»³ èò¾ò Ð¿¹» ç Minutes: City Council/Redevelopment Agency Meeting Page 10 Tuesday, October 27, 2009 15. COUNCIL COMMUNICATIONS: Council Member Fellows referred to the Air Pollution Control District’s (APCD) program to replace wood burning fireplaces with a more efficient fireplace insert and reminded everyone that the process requires applying for a voucher to be eligible for the $250 incentive. He stated there is a limited amount of money available and to contact the APCD office directly for more information. Council Member Fellows also noted that the City is conserving water by rebating 50 cents per square foot for lawn removal and briefly explained the process for the program. Mayor Ferrara announced that the Christmas Parade in the Village would be held on November th 29 and encouraged all members of the City Council to participate with their families by riding in the same float and celebrating with the community. 16. STAFF COMMUNICATIONS: City Manager Adams announced that the next few Council meeting agendas will be heavy; however, staff has made efforts to distribute the items evenly. City Manager Adams reported on the progress to identify a homeless campus in South County and the formation of a non-profit organization, 5-Cities Coalition, for this purpose. He reported that recently the San Luis Obispo Community Foundation came upon a fairly sizable endowment specifically for homeless services, and meetings will be held to coordinate efforts related to this matter. 17. COMMUNITY COMMENTS AND SUGGESTIONS: None. 18. ADJOURNMENT Mayor/Chair Ferrara adjourned the meeting at 9:25 p.m. ______________________________________ Tony Ferrara, Mayor/Chair ATTEST: _______________________________________ Kelly Wetmore, City Clerk/Agency Secretary (Approved at CC Mtg _________________) ß¹»²¼¿ ×¬»³ èò¾ò Ð¿¹» ïð ß¹»²¼¿ ×¬»³ èò½ò Ð¿¹» ï ß¹»²¼¿ ×¬»³ èò½ò Ð¿¹» î ß¹»²¼¿ ×¬»³ èò½ò Ð¿¹» í ß¹»²¼¿ ×¬»³ èò½ò Ð¿¹» ì ß¹»²¼¿ ×¬»³ èò½ò Ð¿¹» ë ß¹»²¼¿ ×¬»³ èò½ò Ð¿¹» ê ß¹»²¼¿ ×¬»³ èò½ò Ð¿¹» é ß¹»²¼¿ ×¬»³ èò½ò Ð¿¹» è ß¹»²¼¿ ×¬»³ èò½ò Ð¿¹» ç ß¹»²¼¿ ×¬»³ èò½ò Ð¿¹» ïð ß¹»²¼¿ ×¬»³ èò½ò Ð¿¹» ïï ß¹»²¼¿ ×¬»³ èò½ò Ð¿¹» ïî ß¹»²¼¿ ×¬»³ èò½ò Ð¿¹» ïí ß¹»²¼¿ ×¬»³ èò½ò Ð¿¹» ïì ß¹»²¼¿ ×¬»³ èò½ò Ð¿¹» ïë ß¹»²¼¿ ×¬»³ èò½ò Ð¿¹» ïê ß¹»²¼¿ ×¬»³ èò½ò Ð¿¹» ïé ß¹»²¼¿ ×¬»³ èò½ò Ð¿¹» ïè ß¹»²¼¿ ×¬»³ èò½ò Ð¿¹» ïç ß¹»²¼¿ ×¬»³ èò½ò Ð¿¹» îð ß¹»²¼¿ ×¬»³ èò½ò Ð¿¹» îï ß¹»²¼¿ ×¬»³ èò½ò Ð¿¹» îî ß¹»²¼¿ ×¬»³ èò½ò Ð¿¹» îí ß¹»²¼¿ ×¬»³ èò½ò Ð¿¹» îì ß¹»²¼¿ ×¬»³ èò½ò Ð¿¹» îë THIS PAGE INTENTIONALLY LEFT BLANK ß¹»²¼¿ ×¬»³ èò½ò Ð¿¹» îê ß¹»²¼¿ ×¬»³ èò¼ò Ð¿¹» ï ß¹»²¼¿ ×¬»³ èò¼ò Ð¿¹» î ß¹»²¼¿ ×¬»³ èò¼ò Ð¿¹» í ß¹»²¼¿ ×¬»³ èò¼ò Ð¿¹» ì ß¹»²¼¿ ×¬»³ èò¼ò Ð¿¹» ë ß¹»²¼¿ ×¬»³ èò¼ò Ð¿¹» ê ß¹»²¼¿ ×¬»³ èò»ò Ð¿¹» ï ß¹»²¼¿ ×¬»³ èò»ò Ð¿¹» î ß¹»²¼¿ ×¬»³ èò»ò Ð¿¹» í ß¹»²¼¿ ×¬»³ èò»ò Ð¿¹» ì ß¹»²¼¿ ×¬»³ èò»ò Ð¿¹» ë THIS PAGE INTENTIONALLY LEFT BLANK ß¹»²¼¿ ×¬»³ èò»ò Ð¿¹» ê ß¹»²¼¿ ×¬»³ èòºò Ð¿¹» ï ß¹»²¼¿ ×¬»³ èòºò Ð¿¹» î ß¹»²¼¿ ×¬»³ èòºò Ð¿¹» í ß¹»²¼¿ ×¬»³ èòºò Ð¿¹» ì ß¹»²¼¿ ×¬»³ èòºò Ð¿¹» ë ß¹»²¼¿ ×¬»³ èòºò Ð¿¹» ê ß¹»²¼¿ ×¬»³ èòºò Ð¿¹» é ß¹»²¼¿ ×¬»³ èòºò Ð¿¹» è ß¹»²¼¿ ×¬»³ èòºò Ð¿¹» ç ß¹»²¼¿ ×¬»³ èòºò Ð¿¹» ïð ß¹»²¼¿ ×¬»³ èòºò Ð¿¹» ïï ß¹»²¼¿ ×¬»³ èòºò Ð¿¹» ïî ß¹»²¼¿ ×¬»³ èòºò Ð¿¹» ïí ß¹»²¼¿ ×¬»³ èòºò Ð¿¹» ïì ß¹»²¼¿ ×¬»³ èòºò Ð¿¹» ïë ß¹»²¼¿ ×¬»³ èòºò Ð¿¹» ïê ß¹»²¼¿ ×¬»³ èòºò Ð¿¹» ïé ß¹»²¼¿ ×¬»³ èòºò Ð¿¹» ïè ß¹»²¼¿ ×¬»³ èòºò Ð¿¹» ïç ß¹»²¼¿ ×¬»³ èòºò Ð¿¹» îð ß¹»²¼¿ ×¬»³ èòºò Ð¿¹» îï ß¹»²¼¿ ×¬»³ èòºò Ð¿¹» îî ß¹»²¼¿ ×¬»³ èò¹ò Ð¿¹» ï ß¹»²¼¿ ×¬»³ èò¹ò Ð¿¹» î ß¹»²¼¿ ×¬»³ èò¹ò Ð¿¹» í ß¹»²¼¿ ×¬»³ èò¹ò Ð¿¹» ì ß¹»²¼¿ ×¬»³ èò¹ò Ð¿¹» ë ß¹»²¼¿ ×¬»³ èò¹ò Ð¿¹» ê ß¹»²¼¿ ×¬»³ èò¹ò Ð¿¹» é ß¹»²¼¿ ×¬»³ èò¹ò Ð¿¹» è ß¹»²¼¿ ×¬»³ èò¹ò Ð¿¹» ç ß¹»²¼¿ ×¬»³ èò¹ò Ð¿¹» ïð ß¹»²¼¿ ×¬»³ èò¹ò Ð¿¹» ïï ß¹»²¼¿ ×¬»³ èò¹ò Ð¿¹» ïî ß¹»²¼¿ ×¬»³ èò¹ò Ð¿¹» ïí ß¹»²¼¿ ×¬»³ èò¹ò Ð¿¹» ïì ß¹»²¼¿ ×¬»³ èò¹ò Ð¿¹» ïë THIS PAGE INTENTIONALLY LEFT BLANK ß¹»²¼¿ ×¬»³ èò¹ò Ð¿¹» ïê ß¹»²¼¿ ×¬»³ èò¸ò Ð¿¹» ï ß¹»²¼¿ ×¬»³ èò¸ò Ð¿¹» î ß¹»²¼¿ ×¬»³ èò¸ò Ð¿¹» í ß¹»²¼¿ ×¬»³ èò¸ò Ð¿¹» ì ß¹»²¼¿ ×¬»³ èò¸ò Ð¿¹» ë ß¹»²¼¿ ×¬»³ èò¸ò Ð¿¹» ê ß¹»²¼¿ ×¬»³ èò¸ò Ð¿¹» é ß¹»²¼¿ ×¬»³ èò¸ò Ð¿¹» è ß¹»²¼¿ ×¬»³ èò·ò Ð¿¹» ï ß¹»²¼¿ ×¬»³ èò·ò Ð¿¹» î ß¹»²¼¿ ×¬»³ èò·ò Ð¿¹» í ß¹»²¼¿ ×¬»³ èò·ò Ð¿¹» ì ß¹»²¼¿ ×¬»³ èò·ò Ð¿¹» ë ß¹»²¼¿ ×¬»³ èò·ò Ð¿¹» ê pRRO o f c INCORPORATED Z V m Nv 10 1011 C44 t FOR MEMORANDUM TO: CITY COUNCIL c, FROM: TERESA MCCLISH, COMMUNITY DEVELOPMENT DIRECTOR SUBJECT: SUPPLEMENTAL INFORMATION AGENDA ITEM 8.i. NOVEMBER 10, 2009 CITY COUNCIL MEETING Consideration of Temporary Use Permit Case No. 09 -024 Authorizing the Closure of City Streets for the 7 Annual Arroyo Grande Village Improvement Association Christmas Parade, November 29, 2009. DATE: NOVEMBER 10, 2009 It is recommended the Council continue this item to November 24, 2009 to allow Staff time to address additional traffic control and detour issues related to continuing the parade onto Mason Street. ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ï ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» î ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» í ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ì ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ë ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ê ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» é ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» è ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ç RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ADOPTING A MITIGATED NEGATIVE DECLARATION, INSTRUCTING THE CITY CLERK TO FILE A NOTICE OF DETERMINATION, AND APPROVING CONCEPT DESIGNS FOR THE CENTENNIAL PLAZA AND DEVELOPMENT AND REDEVELOPMENT OF 200 AND 208 E. BRANCH STREET PROJECT APPLIED FOR NKT COMMERCIAL WHEREAS , the City Council of the City of Arroyo Grande has considered preliminary design for the Centennial Plaza project and the concept designs for development of the 200 East Branch Street property; and WHEREAS , the City has been in negotiations with NKT Commercial and have prepared a Purchase of Sale and Improvement Agreement with NKT Commercial for acquisition o property at 300 East Branch Street, sale of City property at 200 East Branch Street, 208 East Branch Street and the parking area in between, development of a 5,700 square foot commercial building at Short Street and east Branch Street, and adaptive reuse of the 208 East Branch Street building; and WHEREAS, NKT Commercial as prepared alternatives design concepts and are proposing Alternative No. 3; and WHEREAS, the City Council has held a public hearing on this application in accordance with the Municipal Code; and WHEREAS , the City Council finds that this project is consistent with the City’s General Plan, Development Code and the environmental documents associated therewith, and has reviewed the draft Negative Declaration with mitigation measures under the provisions of the California Environmental Quality Act (CEQA); and WHEREAS , the City Council finds, after due study, deliberation and public hearing, the following circumstances exist: Required CEQA Findings: 1. The City of Arroyo Grande has prepared an initial study pursuant to Section 15063 of the Guidelines of the California Environmental Quality Act (CEQA), for the design concept for Centennial Plaza and for design concepts for the development and re- development of 200 and 208 Short Street. 2. Based on the initial study, a Mitigated Negative Declaration was prepared for public review. A copy of the Mitigated Negative Declaration and related materials is located at City Hall in the Community Development Department. ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïð RESOLUTION NO. PAGE 2 3. After holding a public hearing pursuant to State and City Codes, and considering the record as a whole, the City Council adopts a Mitigated Negative Declaration and finds that there is no substantial evidence of any significant adverse effect, either individually or cumulatively on wildlife resources as defined by Section 711.2 of the Fish and Game Code or on the habitat upon which the wildlife depends as a result of development of this project. Further, the City Council finds that said Mitigated Negative Declaration reflects the City’s independent judgment and analysis. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande hereby adopts a Mitigated Negative Declaration, instructs the City Clerk to file a notice of determination, and approves concept design for the Centennial Plaza project, development and redevelopment of 200 and 208 E. Branch Street. On a motion by Council Member _________, seconded by Council Member __________, and by the following roll call vote to wit: AYES: NOES: ABSENT: the foregoing Resolution was adopted this ____ day of October 2009. ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïï RESOLUTION NO. PAGE 3 _______________________________________ TONY FERRARA, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: ______________________________________ STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: ______________________________________ TIMOTHY J. CARMEL, CITY ATTORNEY ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïî ATTACHMENT 1 PURCHASE AND SALE AND IMPROVEMENT AGREEMENT THIS AGREEMENT OF PURCHASE AND SALE AND IMPROVEMENT (“Agreement”) is entered into as of ________________________ (the “Effective Date”) between The City of Arroyo Grande, a municipal corporation formed under the laws of the state of California (the “City”) and NKT Commercial, LLC, a California limited liability company (“NKT”). The City and NKT are collectively referred to herein as the “Parties”. RECITALS WHEREAS, The City is the owner of that certain real property located in Arroyo Grande, California (APN: 007-492-004)more particularly described in Exhibit A attached to and incorporated into this Agreement (collectively, “Parcel 1”). WHEREAS, NKT is the owner of that certain real property located in Arroyo Grande California (APN: 007-493-019) more particularly described in Exhibit B attached to and incorporated into this Agreement (collectively, “Parcel 2”) (Parcel 1 and Parcel 2 are sometimes collectively referred to herein as the “Property”); WHEREAS, NKT desires to purchase Parcel 1 from City and City desires to sell Parcel 1 to NKT subject to the purchase and sale and development terms and conditions contained herein; WHEREAS, the City desires to Purchase Parcel 2 from NKT and NKT desires to sell Parcel 2 subject to the purchase and sale terms and conditions contained herein; NOW, THEREFORE , in consideration of the mutual covenants of the Parties and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows: SECTION 1. Purchase and Sale. Subject to the terms and conditions in this Agreement, The City agrees to sell and NKT agrees to purchase Parcel 1; and NKT agrees to sell and the City agrees to purchase Parcel 2. SECTION 2. Purchase Price. Except as otherwise provided in Section 2(c) below, the purchase price to be paid by the City to NKT for Parcel 2 shall be TWO MILLION FOUR HUNDRED THOUSAND DOLLARS AND NO/CENTS ($2,400,000.00) (the “Parcel 2 Purchase Price”) and the purchase price to be paid by NKT to the City for Parcel 1 shall be ONE MILLION TWO HUNDRED EIGHTY FIVE THOUSAND DOLLARS AND NO/CENTS (the “Parcel 1 Purchase Price”). ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïí (a) Parcel 1: (i) Within five (5) days following the execution of this Agreement by all parties, NKT shall deposit with First American Title Company (“Escrow Holder”) the sum of ________________________ (“Deposit”); and (ii) On or before the Close of Escrow, NKT shall deposit the balance of the Parcel 1 Purchase Price, if any, with Escrow Holder. (b) Parcel 2: (i) Within five (5) days following the execution of this Agreement by all parties, the City shall deposit with First American Title Company (“Escrow Holder”) the sum of ________________________ (“Deposit”); and (ii) On or before the Close of Escrow, the City shall deposit the balance of the Parcel 2 Purchase Price of ______________________ with Escrow Holder. (c) If the City requires the final design of the Improvements (as defined in Section 11 below) to maintain all or a substantial portion of the front façade of the existing structure at 200 East Branch Street, given increased construction costs, the loss of developable space and corresponding estimated loss in future revenue directly attributable to the retention of a portion of or all of said front façade, the Parcel 1 Purchase Price shall be decreased by an amount not less than SIXTY SEVEN THOUSAND FOUR HUNDRED NINETY EIGHT DOLLARS AND NO/CENTS ($67,498.00) nor more than SEVENTY TWO THOUSAND EIGHT HUNDRED AND ONE DOLLARS AND NO/CENTS ($72,801.00), with the exact amount to be determined by the Parties. SECTION 3 Conditions Precedent. (a) Conditions Precedent to Closing. Each Party’s obligation to purchase the Property from the other Party is subject to the following conditions precedent ("Conditions Precedent”): (i) Title Policy. Title to the Property shall be conveyed by a good and sufficient Grant Deed subject to no exceptions other than (1) the lien of local real property taxes and assessments not yet due or payable, and (2) all exceptions to title set forth in a preliminary title report (the "Preliminary Title Report"), as issued by the First American Title Company (the "Title Company"), hereinafter, (1) and (2)_shall be collectively referred to as the "Conditions of Title". Title Company shall provide the Parties with the Preliminary Title Report within three (3) days of the Effective Date. If either buyer Party objects to any exceptions to title stated in the Preliminary Title Report by written notice specifically listing the exception(s) (the “Objection Notice”) , and delivered to the other seller Party within fifteen (15) days after receipt of the Preliminary Title Report, the seller Party shall use reasonable efforts to clear title to the property of such exceptions. If the exceptions objected to cannot be removed and/or otherwise eliminated as title exceptions within ten (10) days after the seller Party’s receipt of the Objection Notice, this Agreement shall be terminated and any money deposited by any party hereunder shall be returned. Delivery of title in accordance with the foregoing shall be evidenced by the issuance by the Title ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïì 2 Company, of its standard ALTA owner’s policy of title insurance, together with such endorsements reasonably required, in the amount of the Purchase Price, showing title to the Real Property vested in the buyer party and subject only to the Conditions of Title; and, (ii) Obligations. The performance by each Partyof every covenant, condition, agreement, and promise to be performed by that Party pursuant to this Agreement and the related documents executed or to be executed by the Parties. (iii) Representations. That all l representations and warranties in this Agreement and the related documents executed or to be executed are truthful and accurate. (iv) Parcel 1 Division: Prior to the conveyance of Parcel 1 to NKT, the City shall legally divide the same so that there are two legal and marketable parcels, consisting of: (1) a parcel of land improved solely by the existing Public Works building and related improvements, said lot being configured in a fashion acceptable to NKT, such acceptance not to be unreasonably withheld; and, (2) a parcel of land improved by the exisiting Building Department, parking lot and related improvements said lot also be configured in a fashion acceptable to NKT, such acceptance not to be unreasonably withheld, and further being first approved by the City, and all other necessary governmental agencies having jurisdiction over the same, for use and development as contemplated herein and .as further described in Section 11 below. (v) Entitlement Process: NKT shall provide full architectural, site, floor, and landscaping plans for the improvement of Parcel 1 by January 1, 2010. Once a Conditional Use Permit (“CUP”) is issued by City, NKT shall submit comprehensive plans and specifications for the Improvements to the City within two (2) months. NKT shall pay to the City SEVENTY THOUSAND DOLLARS ($70,000.00) in parking in-lieu fees with respect to the division and development of Parcel 1 as herein contemplated. NKT shall be responsible for all building and development fees in the normal course of business. However all such building and development fees, exclusive of parking in-lieu, school district, and South County Sanitary District fees, shall not exceed a total of ONE HUNDRED AND SIXTY- EIGHT THOUSAND DOLLARS ($168,000). Payment of said fees shall be made prior to issuance of building permits. City shall issue approval of building permits prior to closing. (vi) Lease of Parcel 2: NKT shall lease Parcel 2 to City at no cost to City commencing on March 1, 2010 and terminating upon closing as defined in Section 4 below. (b) Failure of Conditions Precedent. If any of the Conditions Precedent have not been fulfilled within the applicable time periods the Party for whom said condition protects or provides a benefit may: (i) Waive and Close. Waive the condition or disapproval and transfer the Property and close Escrow in accordance with this Agreement, without adjustment or abatement of the Purchase Price; or (ii) Cure and Close: Cure the failure of condition or representation and reduce the Purchase Price by an amount equal to the cost of cure; or (iii) Terminate. Terminate this Agreement by written notice to Escrow Agent. ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïë 3 SECTION 4 Escrow & Closing. (a)Escrow: An escrow (“Escrow”) for each transaction contemplated herein, (the sale of Parcel 1 and the sale of Parcel 2 are separate and distinct transactions for purposes of this section), shall be opened with First American Title Company (“Escrow Agent”) within five (5) days from the Effective Date of this Agreement. The Parties shall deliver signed instructions to escrow within ten (10) days of the Effective Date of this Agreement. Except for a final determination regarding what amount of funds will ultimately be transferred between the Parties upon Closing, the instructions shall not modify or amend this Agreement; provided, however, that the Parties shall execute any additional instructions requested by Escrow in a manner consistent with the Agreement. All amounts deposited by with the Title Company are to be held in Escrow in an interest-bearing account with interest credited to the depositing Party. Unless the Parties otherwise mutually agree in writing to an extension, the Escrow shall close and the Property shall be transferred, and the Purchase Price paid within ____________________ ( ) days of the date that all conditions precedent are fully satisfied or otherwise waived (“Closing”). (b)1031 Exchange. NKT shall have the right to structure either and/or both transfers contemplated under this agreement as part of a forward or reverse exchange (including, if necessary, the use of an intermediary) with the result that such transfers or exchange shall conform to the requirements IRC of Section 1031 of the Internal Revenue Code of 1986, as amended (the “”). City hereby agrees to reasonably cooperate with the NKT to complete such exchange(s) as requested (including the assignment of this Agreement to a Qualified Intermediary as that term is defined in the IRC), provided that: (a) any additional costs incurred by City solely as a result of structuring the transaction as an exchange shall be borne by the NKT; (b) such exchange shall not result in any substantial delay in closing the transaction; and (c) City shall be required to take title to any property other than the Parcel 2. This Agreement is not subject to or conditioned upon either party’s ability to consummate an exchange. The responsibility of City for reviewing exchange documents proposed by the NKT shall be limited to determining whether the terms and conditions of such exchange documents are such that they are in compliance with the foregoing provisions. NKT shall be responsible for making all determinations as to the legal sufficiency or other consideration, including but not limited to tax considerations, relating to such exchange documents. In cooperating in any exchange transaction arranged by NKT, City shall not in any event be responsible for, or in any way warrant, the tax consequences of the exchange transaction. SECTION 5 Closing Deposits. (a) Before the Closing, the Parties shall deposit with Escrow Agent the following documents and funds: (i) Nonforeign Affidavit. The original Nonforeign Affidavits; (ii) Escrow Instructions. The Escrow Instructions for each escrow required hereunder; (iii) Additional Documents. Any other documents or funds required to close Escrow in accordance with this Agreement. (iv) The balance of the Purchase Price due and owing. ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïê 4 SECTION 6. Closing Costs. Each Party shall pay an equal (50%) share of the Escrow Closing costs. Each Party shall otherwise be liable for complying with their respective obligations hereunder. SECTION 7 Pro-rations. Liability for real property taxes, assessments, insurance premiums shall be prorated between the parties as of the date of the Closing of each Escrow. SECTION 8 Warranties. Notwithstanding anything to the contrary contained herein, for purposes of this Section 8, “Property” shall be utilized to refer to Parcel 1 when applying this Section to the City and Parcel 2 when applying this Section to NKT. The Parties warrant and represent that, to the best of their knowledge without legal inquiry, as of the Effective Date of this Agreement and as of the Closing: (a) There are no other physical, structural, or mechanical defects or violations of any laws or regulations applicable to the Property. To the extent that such defects or violations exist, the Property owner shall repair and/or cure the same prior to the Closing, at that respective owner’s expense. (b) That the documents delivered pursuant to this Agreement will be all of the relevant documents that each Party is aware of pertaining to the condition and operation of the Property, will be true copies, and will be in full force, without default by any party and without any right of offset, except as disclosed in writing at the time of delivery. (c) That there are not pending any special assessments or condemnation actions with respect to the Property or any part of the Property, nor has either Party any knowledge of any special assessments or condemnation actions being contemplated. (d) That all water, sewer, gas, electric, telephone, and drainage facilities and all other utilities required by law and for the normal operation of the Property are installed across public property or valid easements to the property lines of the Property, are all connected with valid permits, and are adequate to service the property and to permit full compliance with all requirements of law. (e) The Parties are not a "foreign person" within the meaning of section 1445(f)(3) of the Internal Revenue Code of 1954, as amended, and that the Parties furnish, if necessary, prior to Closing, an affidavit confirming the same. (f) That there are no Hazardous Substances known to exist on the Property, and that: (i) No Property owner has knowledge of buried or partially buried underground storage tanks on the Property. ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïé 5 (ii) No Property owner is aware of and has not received any notice, warning, notice of violation, administrative complaint, judicial complaint, or any other formal or informal notice alleging that conditions on the Property are or have been in violation of any Environmental Law, or informing the Party that the Property is subject to investigation or inquiry regarding Hazardous Substances on the Property or the potential violation of any Environmental Law. (iii) There is no monitoring program required by the Environmental Protection Agency ("EPA") or any similar State agency concerning the Property. (iv) To the best of each Property owner’s knowledge, no toxic or hazardous chemicals, waste, or substances of any kind have ever been spilled, disposed of, or stored on, under, or at the Property, whether by accident, burying, drainage, or storage in containers, tanks, holding areas, or by other means. (v) No Property owner isaware of the Property ever being used as a dump or a landfill. (vi) The Parties have disclosed all information, records, and studies in connection with the Property concerning Hazardous Substances. Hazardous Substance as used herein shall mean any toxic or hazardous materials or any other substance which constitutes, or is regulated as, a hazardous, extremely hazardous, toxic, extremely toxic or similarly dangerous material, substance or waste under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C.A. §§9601 et seq., the Resource Conservation and Recovery Act of 1976, 42 U.S.C.A. §§6901 et seq., or the California Health and Safety Code, Division 20. The continued accuracy in all respects of the Parties’ representations and warranties shall be a condition precedent to any obligation to close Escrow. All representations and warranties contained in this Agreement shall be deemed remade as of the date of Closing and shall survive the Closing. If any of the representations and warranties are not correct at the time made or as of the Closing, this Agreement may be terminated by the non-breaching Party. SECTION 9 Indemnification. (a)NKT agrees to indemnify and hold the City free and harmless from any losses, damages, costs, or expenses (including attorney fees) resulting from any inaccuracy in or the breach of any representation or warranty of NKT and any breach or default by NKT under any of NKT's covenants or agreements under this Agreement. (b)The City agrees to indemnify and hold NKT free and harmless from any losses, damages, costs, or expenses (including attorney fees) resulting from any inaccuracy in or the breach of any representation or warranty of the City and any breach or default by the City under any of the City’s covenants or agreements under this Agreement. ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïè 6 SECTION 10 Covenants. The Parties agree as follows: (a) Payment of All Obligations. The owner of each Property shall have discharged all liens including, but not limited to, mechanics' and materialmen's liens arising from labor and materials furnished to their Property prior to the Close of Escrow. (b) Litigation. A Party shall immediately notify the other Party of any lawsuits, condemnation proceedings, rezoning, or other governmental order or action, or any threat thereof, known which might affect their Property or any interest therein. SECTION 11 Parcel 1 Maintenance and Development Requirements As a condition precedent to the purchase of Parcel 2, the City requires that NKT agree to the following maintenance and development requirements (the “Requirements”) for Parcel 1: (a)Following the Closing, the structure currently located at 208 East Branch Street (the “Public Works building”), having been designated as a Local Historic Resource, shall be maintained and upgraded consistent with City Village Design Guidelines and Municipal Code Provisions regarding Locally Designated Historic Resources. (b)Following the Closing, on that portion of Parcel 1 currently consisting of a parking lot, between 200 East Branch Street and 208 East Branch Street and the structure at 200 East Branch Street, NKT shall construct a one-story retail commercial structure up to a maximum of 5,800square feet with store fronts on both East Branch and Short Street (the “Improvements”). Additionally, at the corner of East Branch and Short Street, NKT shall include the necessary specifications for restaurant use and shall provide for outdoor seating on the portion of City property to be provided under Section 11(c). The Requirements shall include the following: i.NKT shall provide full architectural, site, floor, and landscaping plans and apply for a CUP for the improvement of Parcel 1 by January 1, 2010. ii.City agrees that NKT’s CUP has been accepted as complete for processing and will be expeditiously processed by City. iii.Once a CUP is issued by City, NKT shall submit comprehensive plans and specifications for the Improvements to the City within two (2) months. iv.Upon approval and issuance of necessary permits by the City and all other governmental authorities having jurisdiction over the same and within 60 days following the Closing, NKT shall begin construction of the Improvements. v.Upon commencement of construction, NKT shall submit any additional plans, specifications and other necessary documents, if any, allowing the City to process the Condominium Permit application. City agrees to use due diligence and to reasonably cooperate in expeditiously processing and assisting NKT with its Condominium Permit application. Final processing and approval of the Condominium Permit application is not a prerequisite to commencement of construction of the Improvements. ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïç 7 vi.Upon commencement of the construction, NKT shall use reasonable diligence so as to complete all Improvements no later than nine (9) months following the commencement of construction under Section 11 (a)(iv). vii.NKT shall pay to the City SEVENTY THOUSAND DOLLARS ($70,000.00) in parking in-lieu fees with respect to the division and development of Parcel 1 as herein contemplated. Said payment shall be due within sixty (60) days following the Closing. viii.Any and all parking spaces constructed as part of the Improvements shall be designated as “Public Parking”. ix.NKT shall be responsible for all building and development fees in the normal course of business following the Closing. However all such building and development fees, exclusive of parking in-lieu, school district, and South County Sanitary District fees, shall not exceed a total of ONE HUNDRED AND SIXTY- EIGHT THOUSAND DOLLARS ($168,000). (c)City shall close Short Street between East Branch Street and Olohan Alley and construct a pedestrian plaza. As part of the valuable consideration herein exchanged between the parites, City shall also, upon Closing, grant to NKT an encroachment permit, license or lease agreement (collectively the “License”), as determined by City, appurtenant to the Parcel 1 Property in order to allow NKT, their successors and/or assigns to place the restaurant outdoor seating and related improvements within the public right-of-way adjacent to the restaurant contemplated under Section 11 (b) and pedestrian plaza as more particularly shown on Exhibit “as the “Outdoor Seating License Area” and by this reference hereby incorporated. Subject to reasonable conditions, the License shall be irrevocable so long as the restaurant use on the Parcel 1 Property continues. City shall complete construction of the plaza improvements within one (1) month of NKT’s completion of construction of the commercial condominium building by NKT. (d)Hold Harmless. To the fullest extent provided by law, NKT will indemnify, defend and hold harmless (without limit as to amount) City and its elected officials, officers, employees and agents in their official capacity (hereinafter collectively referred to as "Indemnities"), and any of them, from and against all loss, all risk of loss and all damage (including expense) sustained or incurred because of or by reason of any and all claims, demands, suits, actions, judgments and executions for damages of any and every kind and by whomever and whenever made or obtained, allegedly caused by, arising out of or relating in any manner to NKT’s construction of Improvements to Parcel 1 following the Closing. (e)Insurance. NKT shall obtain, at its expense, comprehensive general liability insurance for the Improvements of Parcel 1 naming Indemnities as additional named insureds with aggregate limits of not less than Two Million Dollars ($2,000,000) for bodily injury and death and property damage, including coverage for contractual liability and products and completed operations purchased by NKT from an insurance company duly licensed to engage in the business of issuing such insurance in the State, with a current Best's Key Rating of not less than A-VII, such insurance to be evidenced by an endorsement which so provides and delivered to the City Clerk prior to the issuance of any building permit for the development of the Parcel 1. SECTION 12 Due Process. Nothing in this Agreement shall be in conflict with the responsibilities of the City to adhere to general due process requirements and other responsibilities as defined in Federal, State, or local law, statute, regulation, or participating parties’ policies and procedures. ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» îð 8 SECTION 13 Assignment. Prior to the Closing, neither Party may assign its rights hereunder without the express written consent of the other Party. SECTION 14 Successors and Assigns. Without waiver of the provisions of Section 13, all of the rights, benefits, duties, liabilities, and obligations of the Parties shall inure to the benefit of, and be binding upon, their respective successors and assigns. SECTION 15 Notices. All notices to be given under this Agreement shall be in writing and mailed postage prepaid by certified or registered mail, return receipt requested, or by personal delivery to the address indicated below or at other places designated by NKT and the City in a written notice given to the other. Notices shall be deemed served four (4) days after the date of mailing or upon personal delivery. If to NKT: NKT Commercial, LLC Attn: 684 Higuera Street, Suite B San Luis Obispo, CA 93401 If to the City: City of Arroyo Grande Attn: Kelly Wetmore, City Clerk P. O. Box 550 Arroyo Grande, CA 93421 Timothy J. Carmel With copy to: CARMEL & NACCASHA LLP PO Box 15729 San Luis Obispo, CA 93406 SECTION 16 Construction. The title and headings of the Sections in this Agreement are intended solely for reference and do not modify, explain, or construe any provision of this Agreement. All references to sections, recitals, and the preamble shall, unless otherwise stated, refer to the Sections, Recitals, and Preamble of this Agreement. In construing this Agreement, the singular form shall include the plural and vice versa. This Agreement shall not be construed as if it had been prepared by one of the Parties, but rather as if both Parties have prepared the agreement. ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» îï 9 SECTION 17 Integration. This Agreement, all attached exhibits, and all related documents referred to in this Agreement, constitute the entire agreement between the Parties. There are no oral or parol agreements which are not expressly set forth in this Agreement and the related documents being executed in connection with this Agreement. This Agreement may not be modified, amended, or otherwise changed except by a writing executed by the party to be charged. SECTION 18 Third-Party Rights. Nothing in this Agreement, express or implied, is intended to confer upon any person, other than the Parties and their respective successors and assigns, any rights or remedies. SECTION 19 Severability. If any term or provision of this Agreement is held invalid or unenforceable, the remainder of this Agreement shall not be affected. SECTION 20 Waivers. No waiver or breach of any provision shall be deemed a waiver of any other provision, and no waiver shall be valid unless it is in writing and executed by the waiving party. No extension of time for performance of any obligation or act shall be deemed an extension of time for any other obligation or act. SECTION 21 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which taken together shall constitute one and the same instrument. The execution of this Agreement shall be deemed to have occurred, and this Agreement shall be enforceable and effective, only upon the complete execution of this Agreement by both Parties. SECTION 22 Survival. All representations and warranties contained herein, and all indemnities, shall survive the Closing. ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» îî 10 SECTION 23 Incorporation of Exhibits. All attached exhibits are incorporated in this Agreement by reference. SECTION 24 Authority of Parties. All persons executing this Agreement on behalf of a party warrant that they have the authority to execute this Agreement on behalf of that party. SECTION 25. Governing Law. This Agreement shall be governed by and construed in accordance with California law. SECTION 26. Recitals. The recitals set forth above are true and correct and are incorporated herein by this reference. SECTION 27. . Further Assurances Each party agrees to do any other acts and to execute, acknowledge, and deliver any documents requested to carry out the intent and purpose of this Agreement. Whereas the Parties have executed this Agreement effective as of the date first written above. CITY: NKT Commercial: _________________________________________________________ STEVEN ADAMS, City Manager NICK TOMPKINS ATTEST: Its: _____________________________ Kelly Wetmore, City Clerk ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» îí 11 APPROVED AS TO FORM AND LEGAL EFFECT: ______________________________ TIMOTHY J. CARMEL, City Attorney ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» îì 12 ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» îë ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» îê ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» îé ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» îè ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» îç ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» íð ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» íï ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» íî ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» íí ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» íì ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» íë ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» íê ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» íé ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» íè ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» íç ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ìð ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ìï ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ìî ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ìí ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ìì ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ìë ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ìê ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ìé ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ìè ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ìç ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ëð ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ëï ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ëî ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ëí ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ëì ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ëë ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ëê ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ëé ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ëè ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ëç ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» êð ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» êï ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» êî ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» êí ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» êì ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» êë ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» êê ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» êé ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» êè ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» êç ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» éð ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» éï ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» éî ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» éí ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» éì ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» éë ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» éê ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» éé ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» éè ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» éç ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» èð ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» èï ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» èî ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» èí ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» èì ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» èë ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» èê ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» èé ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» èè ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» èç ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» çð ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» çï ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» çî ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» çí ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» çì ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» çë ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» çê ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» çé ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» çè ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» çç ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïðð ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïðï ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïðî ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïðí ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïðì ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïðë ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïðê ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïðé ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïðè ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïðç ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïïð ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïïï ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïïî ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïïí ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïïì ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïïë ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïïê ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïïé ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïïè ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïïç ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïîð ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïîï ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïîî ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïîí ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïîì ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïîë ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïîê ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïîé ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïîè ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïîç ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïíð ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïíï ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïíî ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïíí ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïíì ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïíë ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïíê ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïíé ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïíè ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïíç ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïìð ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïìï ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïìî ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïìí ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïìì ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïìë ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïìê ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïìé ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïìè ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïìç ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïëð ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïëï ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïëî ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïëí ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïëì ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïëë ß¹»²¼¿ ×¬»³ çò¿ò Ð¿¹» ïëê C RROy RPORATED 2 m F OR N MEMORANDUM TO: CITY COUNCIL 1 FROM: TERESA MCCLISH, COMMUNITY DEVELOPMENT DIRECTOR SUBJECT: AGENDA ITEM 9.a. NOVEMBER 10, 2009 CITY COUNCIL MEETING Consideration of Centennial Plaza Project and a Purchase and Sale and Improvement Agreement for Acquisition of Property at 300 E. Branch Street and Sale and Development of City Property at 200 and 208 E. Branch Street and the Adjacent Parking Area. DATE: NOVEMBER 9, 2009 Attached for your information is a copy of the City of Arroyo Grande Initial Study and Draft Mitigated Negative Declaration associated with the above proposal. pRROyO O� c? INOORPORATED 9 ,Z CITY OF ARROYO GRANDE JU 4 INITIAL STUDY c4� and F ORN� DRAFT MITIGATED NEGATIVE DECLARATION Project Title: Development Agreement 09 -001 Lead Agency Name and Address: City of Arroyo Grande 214 East Branch Street Arroyo Grande, CA 93420 Contact Person and Phone Number: Teresa McClish, Director of Community Development (805) 473 -5420 Project Location: The Corner of East Branch Street and Short Street (Portions of APN 007-492-004; 1 Including 200 and 208. East Branch Street) Project Sponsor's Name and Address: NTK Commercial CIO Nick Tompkins City of Arroyo Grande General Plan Designation: Village Core (VC) Description of Project: Commercial development and public plaza on 0.38 acres Surrounding Land Uses and Settings: Commercial to the north and west, City Hall to the east, public parking, public gazebo, public space and pedestrian bridge, Arroyo Grande Creek to the south Other Public Agency Required Approval: None ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED: Aesthetics Agricultural Resources Air Quality Biological Resources Z Cultural Resources Geology and Soils Hazards and Hazardous Hydrology and Water Land Use and Planning Materials Quality Mineral Resources Noise Population and Housing Public Services Recreation Transportation/Traffic Utilities and Service Mandatory Findings of Systems Significance DETERMINATION: I find that the proposed project COULD NOT have a significant effect on the environment, and a NEGATIVE DECLARATION will be prepared. I find that although the proposed project could have a significant effect on the environment, there will not be a significant effect in this case because revisions in the project have been made or agreed to by the project proponent. A MITIGATED NEGATIVE DECLARATION will be prepared. I find that the proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT is required. I find that the proposed project MAY have a "potentially significant impact" or "potentially significant unless mitigated" impact on the environment, but at least one effect 1) has been adequately analyzed in an earlier document pursuant to applicable legal standards, and 2) has been addressed by mitigation measures based on the earlier analysis as described on attached sheets. An ENVIRONMENTAL IMPACT REPORT is c required, but it must analyze only the effects that remain to be addressed. I find that although the proposed project could have a significant effect on the environment, because all potentially significant effects (a) have been analyzed adequately in an earlier EIR or NEGATIVE DECLARATION pursuant to applicable standards, and (b) have been avoided or mitigated pursuant to that earlier EIR or NEGATIVE DECLARATION, including revisions or mitigation measures that are i imposed upon the proposed project, nothing further is required. =i ;,t r 6 October 2009 Signature! Date Teresa McClish, AICP Printed Name EVALUATION OF ENVIRONMENTAL IMPACTS: 1. A brief explanation is required for all answers except "No Impact" answers that are adequately supported by the information sources a lead agency cites in the parentheses following each question. A "No Impact" answer is adequately supported if the referenced information sources show that the impact simply does not apply to projects like the one involved (e.g., the project falls outside a fault rupture zone). A "No Impact" answer should be explained where it is based on project specific factors as well as general standards (e.g., the project will not expose sensitive receptors to pollutants, based on a project- specific screening analysis). 2. All answers must take account of the whole action involved, including off -site as well as on -site, cumulative as well as project level, indirect as well as direct, and construction as well as operational impacts. 3. Once the lead agency has determined that a particular physical impact may occur, then the checklist answers must indicate whether the impact is potentially significant, less than significant with mitigation, or less than significant. "Potentially Significant Impact" is appropriate if there is substantial evidence that an effect may be significant. If there are one or more "Potentially Significant Impact" entries when the determination is made, an EIR is required. 4. "Negative Declaration: Less Than Significant With Mitigation Incorporated" applies where the incorporation of''mtigation measures has reduced an effect from "Potentially Significant Impact" to a "Less Than Significant Impact." The lead agency must describe the mitigation measures, and briefly explain how they reduce the effect to a less than significant level (mitigation measures from Section XVII, "Earlier Analyses may be cross- referenced). 5. Earlier analyses may used where, pursuant to the tiering, program EIR, or other CEQA process, an effect has been adequately analyzed in an earlier EIR or negative declaration: Section 15063(c)(3)(D). In this case, a brief discussion should identify the following: a) Earlier Analysis Used. Identify and state where they are available for review. b) Impacts Adequately Addressed. Identify which effects from the above checklist were within the scope of and adequately analyzed in an earlier document pursuant to applicable legal standards, and state whether such effects were addressed by mitigation measures based on the earlier analysis. c) Mitigation Measures. For effects that are "Less than Significant with Mitigation Measures Incorporated," describe the mitigation measures which were incorporated or refined from the earlier document and the extent to which they address site specific conditions for the project. 7. Lead agencies are encouraged to incorporate into the checklist references to information sources for potential impacts (e.g., general plans, zoning ordinances). Reference to a previously prepared or outside document should, where appropriate, include a reference to the page or pages where the statement is substantiated. 8. Supporting Information Sources: A source list should be attached, and other sources used or individuals contacted should be cited in the discussion. 9. This is only a suggested form, and lead agencies are free to use different formats; however, lead agencies should normally address the questions from this checklist that are relevant to a project's environmental effects in whatever format is selected. 10. The explanation of each issue should identify: a) the significance criteria or threshold, if any, used to evaluate each question; and b) the mitigation measure identified, if any, to reduce the impact to less than significance Potentially Potentially Less Than No Significant Significant Impact Significant Impact Impact Unless Mitigation Impact Incorporation I. AESTHETICS Would the project: Have a substantial adverse effect on a scenic vista? [1, 13, 14] Substantially damage scenic resources, including, but not limited to, trees, rock outcroppings, and historic buildings within a state scenic highway? [13, 16] Substantially degrade the existing visual character or quality of the site and its surroundings? [13, 14] Create a new source of substantial light or glare which would adversely affect day or nighttime views in the area? [13, 14] II. AGRICULTURAL RESOURCES Would the project: Convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant to the Farmland Mapping and Monitoring Program of the California Resources Agency, to non agricultural use? Conflict with existing zoning for agricultural use, or a Williamson Act contract? [4]''' Involve other changes in the existing environment which, due to their location or nature, could result in conversion of Farmland, to non agricultural use? [1, 2] III. AIR QUALITY Would the project: Conflict with or obstruct implementation of the applicable air quality plan? [10] Violate any air quality standard or contribute substantially to an existing or projected air quality violation? [10, 13] Result in a cumulatively considerable net U increase of any criteria pollutant for which the project region is non attainment under an applicable federal or state ambient air quality standard (including releasing emissions which exceed quantitative thresholds for ozone precursors)? [10, 13] Expose sensitive receptors to substantial Z 11 pollutant concentrations? [13] Potentially Potentially Less Than No Significant Significant Impact Significant Impact Impact Unless Mitigation Impact Incorporation Create objectionable odors affecting a substantial number of people? [13] IV. BIOLOGICAL RESOURCES Would the project: Have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive, or special status species in local or regional plans, policies, or regulations, or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? [17] Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, regulations or by the California Department of Fish and Game or US Fish and Wildlife Service? [13, 14] Have a substantial adverse effect on federally protected wetlands as defined by Section 404 of the Clean Water Act (including, but not limited to, marsh, vernal pool, coastal, etc.) through direct removal, filling, hydrological interruption, or other means? [13, 14] Interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites? [13, 14] Conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or ordinance? [3, 13] Conflict with the provisions of an adopted Habitat Conservation Plan, Natural Community Conservation Plan, or other approved local, regional, or state habitat conservation plan? [6] V. CULTURAL RESOURCES Would the project: Cause a substantial adverse change in the significance of a historical resource as defined in 15064.5? [6, 191 Cause a substantial adverse change in the significance of an archaeological resource pursuant to 15064.5? [6, 19] Potentially Potentially Less Than No Significant Significant Impact Significant Impact Impact Unless Mitigation Impact Incorporation Directly or indirectly destroy a unique paleontological resource or site or unique geologic feature? [6, 19] Disturb any human remains, including those interred outside of formal cemeteries? [6, 19] VI. GEOLOGY AND SOILS Would the project: Expose people or structures to potential substantial adverse effects, including the risk of loss, injury, or death involving: Rupture of a known earthquake fault, as delineated on the most recent Alquist Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based on other substantial evidence of a known fault? Refer to Division of Mines and Geology Special Publication 42. [5, 6, 15] Strong seismic ground shaking? [5, 6, 15] Seismic related ground failure, including liquefaction? [5, 6, 15] Landslides? [5, 6, 15] Result in substantial soil erosion or the loss of El topsoil? [5, 6, 15] Be located on a geologic unit or soil that is unstable, or that would become unstable as a result of the project, and potentially result in on- or off -site landslide, lateral spreading, subsidence, liquefaction or collapse? [5, 6, 15] Be located on expansive soil, as defined in Table 18 -1 -B of the Uniform Building Code (1994), creating substantial risks to life or property? [5, 6, 15] Have soils incapable of adequately supporting the use of septic tanks or alternative wastewater disposal systems where sewers are not available for the disposal of wastewater? [5, 6, 15] VII. HAZARDS AND HAZARDOUS MATERIALS Would the project: Create a significant hazard to the public or the environment through the routine transport, use, or disposal of hazardous materials? [13] Potentially Potentially Less Than No Significant Significant Impact Significant Impact Impact Unless Mitigation Impact Incorporation Create a significant hazard to the public or the environment through reasonably foreseeable upset and accident conditions involving the release of hazardous materials into the environment? [13] Emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste within one quarter mile of an existing or proposed school? [13] Be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government Code Section 65962.5 and, as a result, would it create a significant hazard to the public or the environment? [6, 13] For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project result in a safety hazard for people residing or working in the project area? [13] For a project within the vicinity of a private airstrip, would the project result in a safety hazard for people residing or working in the project area? [13] Impair implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan? [1, 13] Expose people or structures to a significant risk of loss, injury or death involving wildland fires, including where wildlands are adjacent to urbanized areas or where residences are intermixed with wildlands? [6, 13] VIII. HYDROLOGY AND WATER QUALITY Would the project: Violate any water quality standards or waste discharge requirements? [9, 13, 16] Potentially Potentially Less Than No Significant Significant Impact Significant Impact Impact Unless Mitigation Impact Incorporation Substantially deplete groundwater supplies or interfere substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level (e.g., the production rate of pre- existing nearby wells would drop to a level which would not support existing land uses or planned uses for which permits have been granted)? [1, 7] Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, in a manner which would result in substantial erosion or siltation on- or off-site? [9, 13, 16] Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, or substantially increase the rate or amount of surface runoff in a manner which would result in flooding on- or off -site? [9, 13, 16] Create or contribute runoff water which would exceed the capacity of existing or planned stomiwater drainage systems or provide substantial additional sources of polluted runoff? [9, 13, 16] Otherwise substantially degrade water n quality? [11] Place housing within a 100 -year flood hazard area as mapped on a federal Flood Hazard Boundary or Flood Insurance Rate Map or other flood hazard delineation map? [12, 13] Place within a 100 -year flood hazard area structures which would impede or redirect flood flows? [12, 13] Expose people or structures to a significant risk of loss, injury or death involving flooding, including flooding as a result of the failure of a levee or dam? [12, 13] Inundation by seiche, tsunami, or mudflow? [12, 13] IX. LAND USE AND PLANNING Would the project: Potentially Potentially Less Than No Significant Significant Impact Significant Impact Impact Unless Mitigation Impact Incorporation Physically divide an established community? [1, 21 Conflict with any applicable land use plan, policy, or regulation of an agency with jurisdiction over the project (including, but not limited to the general plan, specific plan, local coastal program, or zoning ordinance) adopted for the purpose of avoiding or mitigating an environmental effect? [1, 2, 3, 4, 13] Conflict with any applicable habitat conservation plan or natural community conservation plan? [61 X. MINERAL RESOURCES Would the project: Result in the loss of availability of a known mineral resource that would be of value to the region and the residents of the state? [6] Result in the loss of availability of a locally- important mineral resource recovery site delineated on a local general plan, specific plan or other land use plan? [6] XI. NOISE Would the project result in: Exposure of persons to or generation of noise levels in excess of standards established in the local general plan or noise ordinance, or applicable standards of other agencies? [1, 13] Exposure of persons to or generation of excessive groundborne vibration or groundborne noise levels? [1, 131 A substantial permanent increase in ambient noise levels in the project vicinity above levels existing without the project? [13] A substantial temporary or periodic increase in ambient noise levels in the project vicinity above levels existing without the project? [1, 13] For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project expose people residing or working in the project area to excessive noise levels? [1, 2] Potentially Potentially Less Than No Significant Significant Impact Significant Impact Impact Unless Mitigation Impact Incorporation For a project within the vicinity of a private airstrip, would the project expose people residing or working in the project area to excessive noise levels? [1, 2] XII. POPULATION AND HOUSING Would the project: Induce substantial population growth in an area, either directly (for example, by proposing new homes and businesses) or indirectly (for example, through extension of roads or other infrastructure)? [1, 11] Displace substantial numbers of existing housing, necessitating the construction of replacement housing elsewhere'? [11, 12] Displace substantial numbers of people, LEI necessitating the construction of replacement housing elsewhere? [11, 12] XIII. PUBLIC SERVICES Would the project result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities, need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times or other performance objectives for any of the public services: Fire protection? [1, 5, 13] Police protection? [1, 5, 13] Schools? [1,' 5, 13]. Parks? [1, 5, 13] ,1 Other public facilities? [1, 5, 13] XIV. RECREATION Would the project increase the use of existing neighborhood and regional parks or other recreational facilities such that substantial physical deterioration of the facility would occur or be accelerated? [1, 5, 13] Does the project include recreational facilities or require the construction or expansion of recreational facilities which might have an adverse physical effect on the environment? [1, 5, 13] Potentially Potentially Less Than No Significant Significant Impact Significant Impact Impact Unless Mitigation Impact Incorporation XV. TRANSPORTATION /TRAFFIC Would the project: Cause an increase in traffic which is substantial in relation to the existing traffic load and capacity of the street system (i.e., result in a substantial increase in either the number of vehicle trips, the volume to capacity ratio on roads, or congestion at intersections)? [1, 11, 13] Exceed, either individually or cumulatively, a level of service standard established by the county congestion management agency for designated roads or highways? [1, 11, 13] Result in a change in air traffic patterns, 0 including either an increase in traffic levels or a change in location that results in substantial safety risks? [1] Substantially increase hazards due to a design feature (e.g., sharp curves or dangerous intersections) or incompatible uses (e.g., farm equipment)? [1, 13] Result in inadequate emergency access? [13] Result in inadequate parking capacity? [3, 13] Conflict with adopted policies, plans, or programs supporting alternative transportation (e.g., bus turnouts, bicycle racks)? [1, 13] XVI. UTILITIES AND SERVICE SYSTEMS Would the project: Exceed wastewater treatment requirements of the applicable Regional Water Quality Control Board? [1, 8] Require or result in the construction of new water or wastewater treatment facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? [1, 8] Require or result in the construction of new storm water drainage facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? [1, 9] Potentially Potentially Less Than No Significant Significant Impact Significant Impact Impact Unless Mitigation Impact Incorporation Have sufficient water supplies available to serve the project from existing entitlements and resources, or are new or expanded entitlements needed? [1, 6] Result in a determination by the wastewater treatment provider which serves or may serve the project that it has adequate capacity to serve the project's projected demand in addition to the provider's existing commitments? [1, 8] Be served by a landfill with sufficient permitted capacity to accommodate the project's solid waste disposal needs? [1, 61 Comply with federal, state, and local statutes and regulations related to solid waste? [1, 6, 8] XVII. MANDATORY FINDINGS OF SIGNIFICANCE Does the project have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self- sustaining levels, threaten to eliminate a plant or animal community, reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of the major periods of California history or prehistory? Does the project have impacts that are individually limited, but cumulatively considerable? "Cumulatively considerable" means that the incremental effects of a project are considerable when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future projects)? Does the project have environmental effects which will cause substantial adverse effects on human beings, either directly or indirectly? SOURCE LIST: 1. City of Arroyo Grande General Plan 2. City of Arroyo Grande Land Use Map 3. City of Arroyo Grande Development Code 4. City of Arroyo Grande Zoning Map 5. City of Arroyo Grande Existing Setting and Community Issues Report 6. City of Arroyo Grande General Plan EIR 7. City of Arroyo Grande Urban Water Management Plan 8. City of Arroyo Grande Sewer Master Plan 9. City of Arroyo Grande Drainage Plan 10. Air Pollution Control District Clean Air Plan 11. SANDAG Trip Generation Rates 12. FEMA Flood Insurance Rate Map 13. Project Plans, October 6, 2009 14. Site Inspection ENVIRONMENTAL SETTING: The project site is located in the Village of Arroyo Grande and totals approximately 0.38 acres in size. Existing at the site is the City of Arroyo Grande's Building Department office (825 square feet) and parking lot (15 spaces). PROJECT DESCRIPTION: Short Street Redevelopment and Centennial Plaza (Development Agreement 09 -001) The proposed project seeks to 1) construct a multi- tenant single story commercial building within the Village Core which is designed to be compatible with existing turn of the 19 Century commercial storefront and residential architecture of the Village Core and 2) convert an approximately 113 foot section of Short Street into Centennial Plaza. Project details include: The creation a lot with approximate dimensions of 92 feet wide by 79 feet deep; Development of Centennial Plaza which will provide passive open space, floral displays and outdoor dining opportunities; Adaptive reuse of the current Public Works Division building (Conrad House, 208 East Branch Street) which is designated as a local historic resource; Demolition of the Building Division building (200 East Branch Street) which is not designated as a local historic resource; Construction a single story commercial building with four tenant spaces totaling 5,700 square feet and with a maximum height of 26 feet. The proposed commercial building will be placed on an existing 15 space parking lot but the project will provide six spaces equating to a net loss of 9 parking spaces; Development of an Administrative or Planned Sign Program for signs associated with new commercial uses. 1. AESTHETICS The proposed project would involve the construction of a commercial structure. The project site and adjacent sites are not considered scenic areas. The project would result in a graded, landscaped surface and the moderate -sized commercial structure would be visible from East Branch Street as well as nearby off -site viewpoints and commercial buildings, however the development would be similar in scale and architecture to existing commercial buildings in the Village. The project site is located within an area covered by the City's adopted D -2.4 Historic Character Guidelines governing site design, architecture, parking and driveways, landscaping, lighting, signs and utilities. A review of the Preliminary Development Plan evidences general compliance with applicable commercial development standards. Final design of building architecture including elevation appearance, materials, scale and massing will be considered during future discretionary review hearings. III. AIR QUALITY Demolition activities can have potential negative air quality impacts, including issues surrounding proper handling, demolition, and disposal of asbestos containing material (ACM). Asbestos containing materials could be encountered during demolition or remodeling of existing buildings. Asbestos can also be found in utility pipes /pipelines (transit pipes or insulation on pipes). Implementation of the following mitigation measure will reduce these potential impacts to a less- than significant level: MM III -1: If utility pipelines are scheduled for removal or relocation; or building(s) are removed or renovated this project may be subject to various regulatory jurisdictions, including the requirements stipulated in the National Emission Standard for Hazardous Air Pollutants (40CFR61, Subpart M asbestos NESHAP). Prior to removing /relocating any utility pipelines or removing /renovating any buildings, the applicant shall complete the following steps: 1) notify the San Luis Obispo County Air Pollution Control District (APCD), 2) complete an asbestos survey conducted by a Certified Asbestos Inspector, and, 3) fulfill all applicable removal and disposal requirements of any identified ACM. Construction activities can generate fugitive dust, which could be a nuisance to local residents and businesses in close proximity to the proposed construction site Dust complaints could result in a violation of the APCD's 402 "Nuisance" Rule. Any project with a grading area greater than 4.0 acres exceeds the APCD's Particulate Matter (PM10) quarterly threshold. The proposed project is near sensitive receptors and shall implement all applicable Air Pollution Control District regulations pertaining to the control of fugitive dust (PM10) as contained in section 6.5 of the Air Quality Handbook. Implementation of the following mitigation measures will reduce these potential impacts to a less- than significant level: MM III -2: All site grading and demolition plans shall list the following regulations: a. Reduce the amount of the disturbed area where possible, b. Use of water trucks or sprinkler systems in sufficient quantities to prevent airborne dust from leaving the site. Increased watering frequency would be required whenever wind speeds exceed 15 mph. Reclaimed (non potable) water should be used whenever possible, c. All dirt stock pile areas should be sprayed daily as needed, d. Permanent dust control measures identified in the approved project revegetation and landscape plans should be implemented as soon as possible following completion of any soil disturbing activities, e. Exposed ground areas that are planned to be reworked at dates greater than one month after initial grading should be sown with a fast germinating native grass seed and watered until vegetation is established, f. All disturbed soil areas not subject to revegetation should be stabilized using approved chemical soil binders, jute netting, or other methods approved in advance by the APCD, g. All roadways, driveways, sidewalks, etc. to be paved should be completed as soon as possible. In addition, building pads should be laid as soon as possible after grading unless seeding or soil binders are used, h. Vehicle speed for all construction vehicles shall not exceed 15 mph on any unpaved surface at the construction site, i. All trucks hauling dirt, sand, soil, or other loose materials are to be covered or should maintain at least two feet of freeboard (minimum vertical distance between top of load and top of trailer) in accordance with CVC Section 23114, j. Install wheel washers where vehicles enter and exit unpaved roads onto streets, or wash off trucks and equipment leaving the site, and k. Sweep streets at the end of each day if visible soil material is carried onto adjacent paved roads. Water sweepers with reclaimed water should be used where feasible. MM III -3: All portable equipment, 50 horsepower (hp) or greater, used during construction activities will require California statewide portable equipment registration (issued by the California Air Resources Board) or an APCD permit. While this project's estimated construction impacts are not expected to exceed the significance thresholds for ozone precursors, PM from diesel exhaust will result from the diesel construction equipment operating during the construction phase of the project, and the project site is less than 1,000 feet away from residences and is an elementary school. Implementation of the following mitigation measures will reduce these potential impacts to a less- than significant level: MM 111-4: 1. All on -road hauling trucks should be 2003 or newer to reduce diesel PM and NOx emissions; 2. All onsite off -road construction equipment should be 2003 or newer or be retrofitted with diesel particulate filters (CDPF) or diesel oxidation catalysts; 3. Staging and queuing areas shall not be located within 1,000 feet of sensitive receptors; 4. Diesel idling within 1,000 feet of sensitive receptors is not permitted; 5. Use of alternative fueled equipment is recommended whenever possible; and 6. Signs that specify the no idling requirements must be posted and enforced at the construction site. Operational impacts of this development Implementation of the following mitigation measures will reduce these potential impacts to a less- than significant level: MM III -5: 1. Provide on -site bicycle parking or participate in the Racks with Plaques program within the Village Core. One bicycle parking space for every 10 car parking spaces is considered appropriate; 2. Provide preferential carpool and vanpool parking spaces; Provide shower and locker facilities to encourage employees to bike and /or walk to work, typically one shower and three lockers for every 25 employees; and, 4. Increase the building energy efficiency rating by 10% above what is required by Title 24 requirements. This can be accomplished in a number of ways (increasing attic, wall, or floor insulation, installing double pane windows, using efficient interior lighting, etc.). 5. Use high efficiency gas or solar water heaters. 6. Use built -in energy efficient appliances. 7. Use double -paned windows. Operational phase impacts of the greenhouse gas known as carbon dioxide (CO2) implementation of the following mitigation measures to minimize project related GHG impacts: MM III -6: Incorporate 'green building' techniques into the project, such as: Building, positioning and engineering that eliminate or minimize the development's active heating and cooling needs; Implementing solar systems to reduce energy needs; Planting of native, drought resistant landscaping; Use of locally or nearby produced building materials, and; Use of renewable or reclaimed building materials. IV. BIOLOGICAL RESOURCES The site is currently developed with structures and has been graded and paved for parking uses. Biological resources are limited to 10 mature ornamental trees including Bottle Brush, Chinese Twisted Juniper and an Acacia Tree. Conceptual designs include recessed front facades to allow the Acacia tree to remain. New ornamental landscaping will be required for the project. Implementation of the proposed project would not result in an increase in impervious surfaces generating additional urban runoff to Arroyo Grande Creek from the new development. The proposed project as described above will capture storm water in drain inlets with fossil filter inserts that are conveyed to the City's bioswale prior to release to Arroyo Grande Creek. V. CULTURAL RESOURCES The project area is in close proximity to a local historic structure (Conrad House) and has the potential to impact that resource. Implementation of the following mitigation measure will reduce potential impacts to cultural resources to a less- than significant level: MM V -I: Prior to project construction, the applicant shall develop a project that is reviewed by Historic Resources Committee and the Architectural Committee and determined through the Conditional Use Permit process to be consistent with the Secretary of the Interior's Standards for the Treatment of Historic Properties and the City's Design Guidelines and Standards for Historic Districts. VI. GEOLOGY AND SOILS The project site is located within the long developed Village Core. The project site has been the subject of previous grading and paving activities. Other than standard construction grading and necessary design- specified soil compaction, the proposed project would not involve any substantial topographical changes. Issues related to liquefaction, groundwater seepage, expansive material and the potential for differential settlement is minimal and will be addressed with standard building permit requirements including the submittal of geotechnical studies that include appropriate structural design solutions. Based on the General Plan and review of the Alquist Priolo Zone Fault maps, the proposed project is not located on a known earthquake fault subject to rupture. The proposed project will be subject to the effects of periodic seismic events in the region, including ground shaking. However, exposure of people to these events can be mitigated to an acceptable level of risk by following Uniform Building Code development standards. VII. HAZARDS AND HAZARDOUS MATERIALS The project site is not known to contain any hazards or hazardous materials, nor would operation of the project involve the generation or emission of hazardous materials. VIII. HYDROLOGY AND WATER QUALITY The City is currently in a "severely restricted water supply condition as defined in Municipal Code Section 13.05.040. Any new development will place a further burden on the City's already limited water supply. The estimated baseline water demand for the proposed project is 1.824 acre -feet per year based on 0.38 acre feet/year per 1000 square feet gross floor area less the water use for the existing building. There are a number of strategies that the applicant can employ in the design and construction of the project (ultra low -flow fixtures, graywater systems, etc) that could potentially reduce the estimated annual water use. In any case, the project will increase demand on the City's restricted water supply, and the only way to completely mitigate this increased demand is to offset the increased demand off -site. Implementation of the following mitigation measure will reduce the impact to the City's water supply to a less than significant level: MM VIII -1: The applicant shall submit detailed calculations showing the total estimated water demand of the project based on implementation of specific on -site water- saving strategies (ultra low -flow fixtures, graywater systems, etc). MM VIII -2: The applicant shall offset the estimated water demand of the project by either: 1. Implementing an off -site water neutralization program for any facility or property served by the City that reduces water use by an equivalent (or greater) number of acre -feet per year as estimated project demand; or 2. Payment of a water neutralization fee (currently $5,995 /acre -foot) to offset estimated project demand through funding of various water conservation programs administered by the City (cash for grass, appliance rebates, etc).! IX. LAND USE AND PLANNING The City's Land Use Element identifies the property as Mixed -Use (MU), and the property is zoned Village Core Downtown (VCD) which allows a maximum density of fifteen (15) dwelling units per acre. The Mixed Use zone allows for a variety of uses including retail, office and residential. The proposed building design allows for flexibility and variety of retail and office uses. The project does have a potential to temporally decrease space available for City Hall facilities until suitable facilities can be purchased or leased and improved. X. MINERAL RESOURCES The property is not known to contain any mineral resources, nor are there any known mineral resources in the vicinity of the property. XI. NOISE The, property is adjacent to existing residential uses, which will be exposed to short- term noise impacts, primarily from construction activities. Conformance with the City's Development Code and standard conditions of approval will reduce these impacts to a less than significant level. XII. POPULATION AND HOUSING The proposed project would not add housing. This density is consistent with the City's General Plan, and any impacts to population and housing are therefore considered to be less than significant. XIII. PUBLIC SERVICES Adequate services exist in the community to support the proposed project. All applicable development impact fees will be paid as required by State and local mandates; therefore any impacts to public services are considered to be less than significant. XIV. RECREATION Adequate parks and recreational facilities exist in the community to support the proposed project including three nearby parks (Hoosegow Park, Kiwanis Park and Village Green) that adequately provide recreational activities for the Village area. The project does not include recreational facilities but will be subject to paying proportional recreational facilities fees. All applicable parks and recreation fees will be paid as required; therefore any impacts to recreation are considered to be less than significant. XV. TRANSPORTATIONITRAFFIC Transportation, traffic and circulation impact from the project have been studied in a report by Omni Means dated October 7, 2009. The study includes analysis of Short- Term conditions with closure of Short Street and Long-Term cumulative conditions both with the closure of Short- Street and the addition of a 65 space public off street parking lot located on the north side of E. Branch Street. The study quantifies existing and future multi -modal transportation circulation related conditions with these changes. Review of parking, safety, pedestrian access, and vehicular mobility has been included, based upon existing City General Plan policies. The study concludes that intersections and pedestrian and bicycle circulation would continue at acceptable level of service in all scenarios. See attached Omni Means report. XVI. UTILITIES AND SERVICE SYSTEMS proposed project will tie into existing infrastructure for power, gas, communications systems, water treatment and solid waste disposal. The proposed project is within the expected demand for these services based on the City's General Plan; therefore any impacts to utilities and service systems is considered to be less than significant. OF pRROyO INCORPORATED Z g m JULY 10. 1911 e .4 F o& MEMORANDUM TO: CITY COUNCIL FROM: TERESA MCCLISH, COMMUNITY DEVELOPMENT DIRECTOR'S M v SUBJECT: AGENDA ITEM 9.a. NOVEMBER 10, 2009 CITY COUNCIL MEETING Consideration of Centennial Plaza Project and a Purchase and Sale and Improvement Agreement for Acquisition of Property at 300 E. Branch Street and Sale and Development of City Property at 200 and 208 E. Branch Street and the Adjacent Parking Area. DATE: NOVEMBER 9, 2009 Attached for your information is correspondence received from Gary Scherquist concerning the above proposal. Kelly Wetmore From: Teresa McClish Sent: Monday, November 09, 2009 11:40 AM To: Kelly Wetmore Subject: FW: Agenda item 9.b CC mtg Nov. 10,'09 Teresa McChsh, AICP Director of Community Development City of Arroyo Grande P.O. Box 550 214 E. Branch Street Arroyo Grande, CA 93421 (805) 473 -5420 fax (805) 473 -5489 tmcclish([�arro�ogrande. org From: Gary Scherquist Sent: Monday, November 09, 2009 11:18 AM To: Tony Ferrara; Ed Arnold; Joe Costello; Chuck Linda Fellows; Jim Guthrie Cc: Steve Adams; Jim Bergman; Teresa McClish Subject: Agenda item 9.b CC mtg Nov. 10,'09 Members of the City Council Please excuse this email. It is important that I attend the Nov. 10, annual meeting of the South County Historical Society, therefor, I will be unable to attend the City Council meeting. I am writing to address Agenda Item 9.b, Centennial Plaza. Specifically the present Building and Life Safety Building (200 E. Branch). After reviewing the staff report and especially the included illustraions it is clear that retention of the 200 E. Branch building is the right thing to do. The illustrations prepared by MW Architects show how easily the building can be incorporated into the project. It puts the proposed Plaza in context with identifiable City icons and does not tear them down. In your consideration of the three alternates proposed by Staff, please keep in mind that 4 members of the HRC, 3 members of the Planning Commission and 2 members of the Council found this building worthy on being designated a local historic resource. Thank you for your consideration, Gary Scherquist Gary L. 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