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Agenda Packet 2009-11-24 Ý·¬§ Ý±«²½·´ ß¹»²¼¿ Steven Adams, City Manager Tony Ferrara, Mayor/Chair Timothy J. 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 24, 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 3. FLAG SALUTE: CENTRAL COAST MASONIC LODGE #237 4. INVOCATION: PASTOR RANDY OUIMETTE SAINT JOHN’S LUTHERAN CHURCH 5. SPECIAL PRESENTATIONS: Honorary Proclamation Proclaiming November 2009 as “Alzheimer’s 5.a. Awareness Month” 6. AGENDA REVIEW: 6a.Move that all ordinances presented for introduction or adoption be read in title only and all further readings be waived. AGENDA SUMMARY – NOVEMBER 24, 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 Any Council Member may request that any item be withdrawn from the Consent Agenda to permit discussion or change the recommended course of action.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 November 1, 2009 through November 15, 2009. Statement of Investment Deposits 8.b. (KRAETSCH) Recommended Action: Receive and file the report listing the current investment deposits for the period of October 31, 2009. Consideration of Approval of Minutes 8.c. (WETMORE) Recommended Action: Approve the minutes of the Special City Council Meeting of November 10, 2009 and the Regular City Council/Redevelopment Agency Meeting of November 10, 2009, as submitted. Consideration of Cancellation of December 22, 2009 City Council Meeting 8.d. (ADAMS) Recommended Action: Cancel the regularly scheduled Council meeting of December 22, 2009 due to the holiday. AGENDA SUMMARY – NOVEMBER 24, 2009 PAGE 3 8. CONSENT AGENDA (cont’d): Consideration of Permission for Absences from City Council Meetings by 8.e. Council Member Arnold (ADAMS) Recommended Action: Approve absences by Council Member Arnold from City Council meetings from October through December 2009. Consideration of a Resolution Adopting an Amendment to the Full Flex 8.f. Cafeteria Plan Section 125 (KRAETSCH) Recommended Action: Adopt a Resolution establishing an amendment to the Full Flex Cafeteria Plan Section 125 for the Management Group; International Association of Fire Fighters, Local 4403; Arroyo Grande Police Officers’ Association; and the Service Employees International Union, Local 620. Consideration of Temporary Use Permit Case No. 09-024 Authorizing the 8.g. th Closure 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 09- th 024 for the 7 Annual Arroyo Grande Village Improvement Association Christmas Parade. 9. PUBLIC HEARINGS: Continued Public Hearing - Consideration of a Resolution Amending a 9.a. Condition of Approval for Tentative 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: Continue this item to December 8, 2009. Consideration of Preliminary Approval of Community Development Block Grant 9.b. Projects for Year 2010 (MCCLISH) Recommended Action: Provide preliminary approval of proposed projects to be funded with the City’s allocation of CDBG funds for the Year 2010. Consideration of Redevelopment Agency Five-Year Implementation Plan 9.c. (ADAMS) [CC/RDA] Recommended Action: Adopt a Resolution approving the proposed new Redevelopment Agency Five-Year Implementation Plan. 10. CONTINUED BUSINESS: None. AGENDA SUMMARY – NOVEMBER 24, 2009 PAGE 4 11. NEW BUSINESS: Consideration of Fiscal Year 2009-10 First Quarter Budget Status Report 11.a. (KRAETSCH) Recommended Action: Approve Carryover Appropriations as shown on Schedule A and approve budget adjustments and recommendations as listed in the Quarterly Financial Report and shown on Schedule A. Consideration of a Proposed Ordinance Adding Chapter 9.28 Entitled “Graffiti 11.b. Abatement” to the Arroyo Grande Municipal Code (ANNIBALI) Recommended Action: Introduce an Ordinance adding Chapter 9.28 entitled “Graffiti Abatement” to the Arroyo Grande Municipal Code. Consideration of a Proposed Ordinance Repealing and Replacing Chapter 5.56 11.c. of the Arroyo Grande Municipal Code in its Entirety Regarding Massage Establishments (ANNIBALI) Recommended Action: 1) Introduce an Ordinance repealing and replacing Chapter 5.56 of the Arroyo Grande Municipal Code in its entirety regarding massage establishments; and 2) Repeal fees for the massage establishment permit and the massage technician permit from the City’s Master Fee Schedule upon the effective date of the Ordinance. 12. CITY COUNCIL REPORTS: This item gives the Mayor and Council Members the opportunity to present reports to the other members regarding committees, commissions, boards, or special projects on which they may be participating. (a) MAYOR TONY FERRARA: (1) San Luis Obispo Council of Governments/San Luis Obispo Regional Transit Authority (SLOCOG/SLORTA) (2) South San Luis Obispo County Sanitation District (SSLOCSD) (3) Brisco/Halcyon/Hwy 101 Interchange Project Subcommittee (4) Recreation Center Subcommittee (5) Other (b) MAYOR PRO TEM JOE COSTELLO: (1) Zone 3 Water Advisory Board (2) Air Pollution Control District (APCD) (3) Fire Oversight Committee (4) Other (c) COUNCIL MEMBER JIM GUTHRIE: (1) South County Area Transit (SCAT) (2) Community Action Partnership (3) California Joint Powers Insurance Authority (CJPIA) (4) Homeless Services Coordinating Council (HSOC) (5) Tourism Committee AGENDA SUMMARY – NOVEMBER 24, 2009 PAGE 5 12. CITY COUNCIL REPORTS (cont’d): (d) COUNCIL MEMBER ED ARNOLD: (1) Integrated Waste Management Authority Board (IWMA) (2) Economic Vitality Corporation (EVC) (3) Other (e) COUNCIL MEMBER FELLOWS: (1) County Water Resources Advisory Committee (WRAC) (2) Other 13. 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. 14. 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. 15. COUNCIL COMMUNICATIONS: Correspondence/Comments as presented by the City Council. 16. STAFF COMMUNICATIONS: Correspondence/Comments as presented by the City Manager. 17. 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. 18. ADJOURNMENT AGENDA SUMMARY – NOVEMBER 24, 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 in the City Clerk’s office, 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 ëò¿ò Ð¿¹» ï THIS PAGE INTENTIONALLY LEFT BLANK ß¹»²¼¿ ×¬»³ ëò¿ò Ð¿¹» î 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 THIS PAGE INTENTIONALLY LEFT BLANK ß¹»²¼¿ ×¬»³ èò¿ò Ð¿¹» ïì ß¹»²¼¿ ×¬»³ èò¾ò Ð¿¹» ï ß¹»²¼¿ ×¬»³ èò¾ò Ð¿¹» î ß¹»²¼¿ ×¬»³ èò¾ò Ð¿¹» í THIS PAGE INTENTIONALLY LEFT BLANK ß¹»²¼¿ ×¬»³ èò¾ò Ð¿¹» ì MINUTES SPECIAL MEETING OF THE CITY COUNCIL TUESDAY, NOVEMBER 10, 2009 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. ROLL CALL : Mayor Ferrara called the special meeting to order at 6:30 p.m. Council Member Jim Guthrie, Council Member Fellows, Mayor Pro Tem Costello, City Manager Steven Adams, and City Attorney Timothy Carmel were present. Council Member Chuck Fellows and Council Member Ed Arnold were absent. 2. PUBLIC COMMENT : None. 3. CITY COUNCIL CLOSED SESSION: a. PUBLIC EMPLOYEE PERFORMANCE EVALUATION pursuant to Government Code Section 54957: Title: City Manager b. CONFERENCE WITH LABOR NEGOTIATOR pursuant to Government Code Section 54957.9: Agency Negotiator: Timothy J. Carmel, City Attorney Unrepresented Employee: City Manager 4. RECONVENE TO OPEN SESSION: Mayor Ferrara announced that there was no reportable action from the closed session. 5. ADJOURNMENT: The meeting was adjourned at 6:52 p.m. ________________________________ Tony Ferrara, Mayor ATTEST: ________________________________ Kelly Wetmore, City Clerk (Approved at CC Mtg __________) ß¹»²¼¿ ×¬»³ èò½ò Ð¿¹» ï MINUTES REGULAR MEETING OF THE CITY COUNCIL/REDEVELOPMENT AGENCY TUESDAY, NOVEMBER 10, 2009 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. CALL TO ORDER Mayor/Chair Ferrara called the Regular City Council meeting to order at 7:01 p.m. 2. ROLL CALL City Council/RDA: Council/Board Members Jim Guthrie, and Chuck Fellows, 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, Director of Recreation and Maintenance Services, and Director of Community Development Teresa McClish. 3. FLAG SALUTE Members of Brownie Troop 40734 led the Flag Salute. 4. INVOCATION Dr. Mayer Harnish, Bahai Faith, delivered the invocation. 5. SPECIAL PRESENTATIONS None. 6. AGENDA REVIEW 6.a. Ordinances Read in Title Only. Mayor Pro Tem/Vice Chair Costello moved, Council/Board Member Fellows seconded, and the motion passed unanimously that all ordinances presented at the meeting shall be read in title only and all further reading be waived. 7. CITIZENS’ INPUT, COMMENTS, AND SUGGESTIONS Bob Lund, Village Improvement Association Executive Director, spoke about the new decorative lights on the trees along E. Branch Street; thanked attorney James Murphy for the lighting decorations at his business located in the Village; and spoke about projects that Arroyo Grande In Bloom is working on, including the fire resistant landscape garden project at the Fire Station, Dr. Carsten Zieger, emergency room physician at Arroyo Grande Community Hospital, expressed concerns and opposition regarding the decision by the San Luis Obispo County Emergency Medical Services Agency (EMSA) to support the latest trauma plan proposal for a single Level II trauma center at Sierra Vista Hospital. Rick Castro, President of Arroyo Grande Community Hospital, supported comments made by Dr. Zieger and spoke about the potential negative impact on Arroyo Grande Community Hospital’s emergency operations and staffing. ß¹»²¼¿ ×¬»³ èò½ò Ð¿¹» î Minutes: City Council/Redevelopment Agency Meeting Page 2 Tuesday, November 10, 2009 Steve Ross, Garden Street, referred to local government access Channel 20 and stated it might be helpful to scroll the Agenda items prior to Council and Commission meetings. 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. There were no public comments received. Mayor Ferrara referred to the supplemental information distributed by staff regarding Item 8.i. and requested that the item be pulled for separate action. Action : Council Member Guthrie moved, and Council Member Fellows seconded the motion to approve Consent Agenda Items 8.a. through 8.h., with the recommended courses of action. The motion passed on the following roll-call vote: AYES: Guthrie, Fellows, Costello, Ferrara NOES: None ABSENT: Arnold 8.a.Cash Disbursement Ratification. Action: Ratified the listing of cash disbursements for the period October 16, 2009 through October 31, 2009. 8.b.Consideration of Approval of Minutes. Action : Approved the minutes of the Regular City Council/Redevelopment Agency meeting of October 27, 2009, as submitted. 8.c.Consideration of Resolution Authorizing PacificWest Energy Solutions, Inc. to Submit Applications on behalf of the City for Funding from the California Energy Commission. Action :“A RESOLUTION OF THE CITY 1) Adopted Resolution No. 4228 as follows: COUNCIL OF THE CITY OF ARROYO GRANDE AUTHORIZING PACIFICWEST ENERGY SOLUTIONS, INC. TO SUBMIT ENERGY CONSERVATION FUNDING APPLICATIONS ON BEHALF OF THE CITY OF ARROYO GRANDE”; and 2) Authorized 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. 8.d.Consideration of a Resolution Approving an Application for Proposition 40 and 84 Urban Forestry Grant Program Funds for Tree Planting. A RESOLUTION OF THE CITY “ Action: Adopted Resolution No. 4229 as follows: COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING THE APPLICATION FOR FUNDING FROM THE URBAN FORESTRY GRANT PROGRAM; “AN URBAN FOREST FOR EVERY CITY”, AS PROVIDED BY PROPOSITIONS 40 AND 84 FOR TREE PLANTING”. 8.e.Consideration of Adoption of a Resolution Approving Application for Proposition 40 and 84 Urban Forestry Grant Program Funds for a Tree Inventory. A RESOLUTION OF THE CITY “ Action: Adopted Resolution No. 4230 as follows: COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING THE APPLICATION FOR FUNDING FROM THE URBAN FORESTRY GRANT ß¹»²¼¿ ×¬»³ èò½ò Ð¿¹» í Minutes: City Council/Redevelopment Agency Meeting Page 3 Tuesday, November 10, 2009 PROGRAM; “AN URBAN FOREST FOR EVERY CITY”, AS PROVIDED BY PROPOSITIONS 40 AND 84 FOR A TREE INVENTORY”. 8.f.Consideration to Award Bid and Approve a Contractor Services Agreement for Uniform and Related Services. Action : 1) Awarded the bid and authorized the Mayor to execute a 3-year Contractor Services Agreement with AmeriPride Uniform Services; and 2) Appropriated $300 from the Sewer Fund. 8.g.Consideration of a First Amendment to the Agreement for Consultant Services with Garing Taylor & Associates for Well No. 10 Phase II Project, PW 2010-02. Action : 1) Approved 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) Authorized the City Manager to execute the First Amendment. 8.h.Consideration of Third Amendment to Agreement with North Coast Engineering for the El Camino Real Improvement Project. Action: 1) Approved 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) Authorized the Mayor to execute the amendment. ITEM PULLED FROM THE CONSENT AGENDA 8.i.Consideration of Temporary Use Permit Case No. 09-024 Authorizing the Closure of th City Streets for the 7 Annual Arroyo Grande Village Improvement Association Christmas Parade, November 29, 2009. Recommended Action: Adopt a Resolution Approving Temporary Use Permit No. 09-024 and Authorizing the Closure of City Streets for the 7th Annual Arroyo Grande Village Improvement Association Christmas Parade, November 29, 2009. Community Development Director McClish recommended the Council continue this item to the next Regular City Council Meeting of November 24, 2009 to allow staff time to address additional traffic control and detour issues related to continuing the parade onto Mason Street. Action: Mayor Ferrara moved to continue the item to the next Regular City Council Meeting of November 24, 2009. Council Member Guthrie seconded, and the motion passed on the following roll-call vote: AYES: Ferrara, Guthrie, Fellows, Costello NOES: None ABSENT: Arnold 9. PUBLIC HEARINGS 9.a.Continued Public Hearing - 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. ß¹»²¼¿ ×¬»³ èò½ò Ð¿¹» ì Minutes: City Council/Redevelopment Agency Meeting Page 4 Tuesday, November 10, 2009 Recommended Action: 1) Adopt 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. City Manager Adams referred to a letter received by NKT Commercial requesting a continuance of the item to the Regular City Council Meeting of December 8, 2009 and recommended the Council approve the request for the continuance. Action: Council Member Guthrie moved to continue the item to the Regular City Council Meeting of December 8, 2009. Mayor Pro Tem Costello seconded, and the motion passed on the following roll call vote: AYES: Guthrie, Costello, Fellows, Ferrara NOES: None ABSENT: Arnold 9.b.Consideration of a Resolution Amending a Condition of Approval for Tentative 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. 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. Community Development Director McClish recommended the Council continue the item to a date certain to allow staff additional time to work with the applicant on reimbursement for the S. Alpine waterline. Action: Council Member Guthrie moved to continue the item to the next Regular City Council Meeting of November 24, 2009. Council Member Fellows seconded, and the motion passed on the following roll call vote: AYES: Guthrie, Fellows, Costello, Ferrara NOES: None ABSENT: Arnold ß¹»²¼¿ ×¬»³ èò½ò Ð¿¹» ë Minutes: City Council/Redevelopment Agency Meeting Page 5 Tuesday, November 10, 2009 9.c.Consideration of Purchase and Sale Agreement and Joint Escrow Instructions for Sale of Property on Courtland Street South of East Grand Avenue to Peoples’ Self Help Housing. [RDA/CC] Chair Ferrara declared a conflict of interest due to ownership of real property near the site associated with the proposed Purchase and Sale Agreement, and he stepped down from the dais. Executive Director Adams presented the staff report and recommended the RDA Board of Directors 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. Vice Chair Costello opened the public hearing. Jeanette Duncan, Executive Director of People’s Self Help Housing, spoke in support of the proposal. Hearing no further public comments, Vice Chair Costello closed the public hearing. Board comments ensued in support of the proposed Purchase and Sale Agreement; that this is an excellent location for an affordable housing project; that the VCA Animal Hospital will benefit from the proposal too; and that this site is better for an affordable housing project than the El Camino Real site. Action: Board Member Fellows moved toapprove 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 to be used for affordable housing. Board Member Guthrie seconded, and the motion passed on the following roll call vote: AYES: Fellows, Guthrie, Costello NOES: None ABSENT: Arnold, Ferrara Chair Ferrara returned to the dais. 10. CONTINUED BUSINESS ITEMS None. 11. NEW BUSINESS ITEMS 11.a.Consideration of Groundwater Monitoring and Test Findings and Adoption of Interim Urgency Ordinance Establishing a 45 Day Moratorium on the Approval of Development Projects. ß¹»²¼¿ ×¬»³ èò½ò Ð¿¹» ê Minutes: City Council/Redevelopment Agency Meeting Page 6 Tuesday, November 10, 2009 City Manager Adams presented the staff report and recommended the Council: 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. Mayor Ferrara invited comments from those in the audience who wished to be heard on the matter. John Snyder, Nipomo, referred to “lost” wells and the lack of available public information on well monitoring results. He expressed concerns about meetings being held without full public participation and distributed written material regarding water and well monitoring issues in the South County. Mayor Ferrara acknowledged receipt of the comprehensive information submitted by Mr. Snyder and that the Council would need time to review. He asked the City Attorney to explain the nature of the technical meetings that are held. City Attorney Carmel explained that the settlement agreement in the Santa Maria Groundwater Basin litigation required the creation of a technical advisory committee with staff representatives from Arroyo Grande, Grover Beach, Pismo Beach, and Oceano Community Services District to meet on a quarterly basis and exchange data and information and that these are not secret meetings, and they are not subject to the Brown Act. Steve Ross , Garden Street, stated that seawater intrusion is not a new issue; spoke of similar issues occuring in Monterey; believed that the matter is caused by over pumping and not regulating water use by agricultural operations; and suggested that the City determine how much water is being pumped by agricultural operations. Hearing no further public comments, Mayor Ferrara closed the public comment period. Council comments ensued acknowledging the current water issues and risks; and support for adoption of the Interim Urgency Ordinance for a period of 45 days to allow staff time to analyze and develop strategies and recommendations to address water resources for future development projects as outlined in the staff report. Staff was further directed to forward the information submitted by Mr. Snyder to the County, to prepare public education information on the moratorium which would include a press release, news articles, and fact sheets for the City website. City Manager Adams further explained that new development applications would continue to be accepted and processed, but not approved. Action:“AN Mayor Pro Tem Costello moved to adopt an Interim Urgency Ordinance as follows: INTERIM URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ADOPTING A MORATORIUM ON THE APPROVAL OF DEVELOPMENT PROJECTS, AND DECLARING THE URGENCY THEREOF”. Council Member Guthrie seconded, and the motion passed on the following roll call vote: AYES: Costello, Guthrie, Fellows, Ferrara ß¹»²¼¿ ×¬»³ èò½ò Ð¿¹» é Minutes: City Council/Redevelopment Agency Meeting Page 7 Tuesday, November 10, 2009 NOES: None ABSENT: Arnold Action: Council Member Fellows moved toauthorize 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 to direct staff to seek public input and prepare recommendations to address water supply and potential seawater intrusion issues. Council Member Guthrie seconded, and the motion passed on the following roll call vote: AYES: Fellows, Guthrie, Costello, Ferrara NOES: None ABSENT: Arnold 12. CITY COUNCIL MEMBER ITEMS None. 13. CITY MANAGER ITEMS None. 14. COUNCIL COMMUNICATIONS In response to earlier public comments, the Council directed staff to obtain a copy of Arroyo Grande Community Hospital’s position paper on the Level II Trauma Plan; schedule a follow-up meeting with Mr. Castro; obtain copies of the executive summary from the consultant’s report; and notify the County that the City wants to be involved in this matter. Mayor Ferrara announced that he had met with Assemblyman Sam Blakeslee and other Mayors to discuss the water issues and reported on proposed State legislation that would exempt cities from water conservation requirements that have per capita usage of less than 100 gallons per day. 15. STAFF COMMUNICATIONS None. 16. COMMUNITY COMMENTS AND SUGGESTIONS Brendan Heinegan, San Luis Obispo, expressed concern about excessive water use impacting water needed for agricultural operations. 17. ADJOURNMENT Mayor/Chair Ferrara adjourned the meeting at 8:15 p.m. ß¹»²¼¿ ×¬»³ èò½ò Ð¿¹» è Minutes: City Council/Redevelopment Agency Meeting Page 8 Tuesday, November 10, 2009 ______________________________________ Tony Ferrara, Mayor/Chair ATTEST: ______________________________________ Kelly Wetmore, City Clerk/Agency Secretary (Approved at CC Mtg _______________) ß¹»²¼¿ ×¬»³ èò½ò Ð¿¹» ç THIS PAGE INTENTIONALLY LEFT BLANK ß¹»²¼¿ ×¬»³ èò½ò Ð¿¹» ïð ß¹»²¼¿ ×¬»³ èò¼ò Ð¿¹» ï ß¹»²¼¿ ×¬»³ èò¼ò Ð¿¹» î ß¹»²¼¿ ×¬»³ èò»ò Ð¿¹» ï ß¹»²¼¿ ×¬»³ èò»ò Ð¿¹» î 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 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Cq 1 FORN MEMORANDUM TO: CITY COUNCIL ...„ry FROM: TERESA MCCLISH, COMMUNITY DEVELOPMENT DIRECTOR SUBJECT: SUPPLEMENTAL INFORMATION AGENDA ITEM 9.b. — NOVEMBER 240, 2009 CITY COUNCIL MEETING Consideration of Preliminary Approval of Community Development Block Grant Projects for Year 2010. DATE: NOVEMBER 24, 2009 Attached are copies of correspondence received from Big Brothers Big Sisters of San Luis Obispo County and the Literacy Council for San Luis Obispo County regarding the above referenced agenda item. BIG BROTHERS BIG SISTERS OF SAN LUIS OBISPO COUNTY • A 501(c)(3) Non - Profit Organization 142 Cross Street; Suite 140, P.O. Box 12644, San Luis Obispo, CA 93406 (805) 781 -3226 (888) 781 -3226 FAX: 781 -3029 E -Mail: office @slobigs.org Web Pa • e: www.slobi a s.or Board of Directors Making a BIG Difference, One Child at a Time President C.M. Florence Oasis Associates November 23, 2009 Vice President City of Arroyo Grande Hal Sweasey �' y RE /MAX Del Oro Jim Bergman Secretary P.O. Box 550 Christie Tjong Arroyo Grande, CA 93421 Fidelity National Title Treasurer Attention Arroyo Grande City Council members and staff, Marian Anderson First Bank of SLO Thank you for the opportunity to apply for 2010 CDBG funding. We appreciate your longstanding mmediate Past President support of youth mentoring, and the recommendation for funding next year. Clint Pearce Madonna Enterprises While Arroyo Grande has a large number of wealthy residents, it also has a large number of low to Greg Astle extremely low- income families. Many of the poorest households contain children, and many of Keller Williams them desperately need a mentor to be a friend, companion and confidant. During the 2008 -2009 of the Central Coast fiscal year Big Brothers Big Sisters of San Luis Obispo County utilized the Arroyo Grande CDBG Dave Axberg funds to match vulnerable youth with adult friends. We served 28 children in Arroyo Grande, 9 of Founders them new. CDBG funding helps us to continue to increase the number of children we serve in your Community Bank City. Monique Carlton San Luis Obispo Realty W have participated in the Arroyo Grande CDBG program for a number of years now. We have Rick Cohen always used the funds in a timely and efficient manner and have yet to miss a reporting deadline. Avila Beach While the amount of funding Arroyo Grande provides us is small, we appreciate your continued Community Foundation support for youth mentoring. Karen Colombo Ret. Financial Analyst Having an adult friend significantly increases the odds that children in our community will succeed. Bryan Gingg In fact, a Public- Private Ventures study found that children enrolled in our program are more likely Investor/ than their peers to perform better in school, behave non - violently, avoid illegal drugs and alcohol, Community Advocate and have stronger family relationships. In addition, a study conducted for Big Brothers Big Sisters Jim Hamari by Harris Interactive finds that adults who were involved as children in our program are better Charles Schwab educated, wealthier, and report strong relationships with their spouses, children and friends. Mike Hill &ramie Department of Fish Those are significant achievements, and what really inspires us is hearing from the children in our and Game program. Brandon, age 15, has been enrolled in our program for almost three years and sent us a Russ Levanway letter stating: "Being a Little has changed my life because I have a Big Brother who helps me when I TekTegrity, Inc. need help or encouraging... This is such an important program because the Big directs the Little to Ziyad Naccasha do something that he would not have the courage to do by himself. I will become a Big Brother Carmel & Naccasha LLP some day." JED Nicholson I believe that Brandon will succeed, and that he will pay forward the positive lessons he has leamed. Adamski Moroski Madden & Green LLP We thank you for being a part of making that happen. Ed Stevens Shopatron, Inc. Sincerely, Julie Tizzano- Schumann SLOCO Data Anna Boyd -Bucy Christopher Waterbury Executive Director J.W. Design and Construction, Inc. Kelly Wetmore From: Jim Bergman Sent: Tuesday, November 24, 2009 9:15 AM To: Kelly Wetmore Subject: FW: Tuesday November 24, 2009 City Council meeting Jim Bergman, AICP Planning Manager Community Development Department City of Arroyo Grande (805) 473-5420 From: Bernadette Bernardi [mailto:bliteracy @charter.net] Sent: Monday, November 23, 2009 11:00 AM To: Tony Ferrara Cc: Jim Bergman; Kathy Mendoza Subject: Tuesday November 24, 2009 City Council meeting Dear Mayor Ferrara, I am the executive director for the Literacy Council for San Luis Obispo County. Please accept my sincere apology for not being able to attend tomorrow evening's City Council meeting. Please know that our organization very much appreciates CDBG funding from the City of Arroyo Grande. We rely on those funds to maintain our program at our two Learning Centers in Arroyo Grande. We are committed to provide quality instruction in basic English language skills to adults and their families. Your staff has recommended our request for CDBG funds on a consistent basis. We are grateful that they evaluate our service as a vital need, especially to the lower economic demographic of your community. There is great need in your city for our service. We are only limited by the number of volunteers we can train and the space to accommodate our tutor /learner pairs. Our learners achieve their learning goals because of our one on one teaching, a few of the goals accomplished this past year include: attain a GED certificate, read to a child, and be promoted to a better job. I look forward to our on -going collaboration to assist residents of Arroyo Grande. Thank you. Best Regards, Bernadette Bernardi 1 ß¹»²¼¿ ×¬»³ çò½ò Ð¿¹» ï ß¹»²¼¿ ×¬»³ çò½ò Ð¿¹» î ß¹»²¼¿ ×¬»³ çò½ò Ð¿¹» í ß¹»²¼¿ ×¬»³ çò½ò Ð¿¹» ì RESOLUTION NO. A RESOLUTION OF THE ARROYO GRANDE REDEVELOPMENT AGENCY ADOPTING THE 2009-10 THROUGH 2013-14 FIVE-YEAR IMPLEMENTATION PLAN FOR THE ARROYO GRANDE REDEVELOPMENT PROJECT AREA WHEREAS , Section 33490(a)(1)(A) of the California Community Redevelopment Law, Health and Safety Code 33000 et seq. (“Law”) requires all redevelopment agencies to adopt an Implementation Plan every five years, following a duly noticed public hearing; and WHEREAS , Section 33490(a)(1)(A) requires that every five (5) years the Redevelopment Agency of the City of Arroyo Grande (“Agency”) develop an Implementation Plan for the Arroyo Grande Redevelopment Project Area (“Project Area”); and WHEREAS , the Implementation Plan will contain the specific goals and objectives of the Agency for the Project Area and detail the programs, projects, and estimated expenditures proposed to be made during the next five years to eliminate blight within the Project Area and implement the requirements of Sections 33334.2, 33334.4, 33334.6, and 33413 of Law; and WHEREAS , pursuant to Section 33490 of the Law, the Agency has prepared a Five-Year Implementation Plan, including a Housing Production Plan, for the Project Area; and WHEREAS , the Agency has conducted a duly noticed public hearing. NOW, THEREFORE, BE IT RESOLVED by the Arroyo Grande Redevelopment Agency Board of Directors that: 1. Pursuant to Section 33490 of the Law, the Agency Board of Directors heard all public testimony in a duly noticed public hearing. 2. The Agency Board of Directors hereby approves and adopts the 2009-10 through 2013-14 Five-Year Implementation Plan for the Project Area attached hereto as Exhibit A. 3. This Resolution shall take effect immediately upon its passage. On motion of Board Member ____________, seconded by Board Member _____________, and on the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted on this _____ day of_______, 2009. ß¹»²¼¿ ×¬»³ çò½ò Ð¿¹» ë RESOLUTION NO. PAGE 2 _________________________________________ TONY FERRARA, CHAIR ARROYO GRANDE REDEVELOPMENT AGENCY ATTEST: _________________________________________ KELLY WETMORE, SECRETARY ARROYO GRANDE REDEVELOPMENT AGENCY APPROVED AS TO CONTENT: ___________________________________ STEVEN ADAMS, EXECUTIVE DIRECTOR ARROYO GRANDE REDEVELOPMENT AGENCY APPROVED AS TO FORM: ____________________________________ TIMOTHY J. CARMEL, GENERAL COUNSEL ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò Ð¿¹» ê ÛÈØ×Þ×Ì ß Arroyo Grande Redevelopment Project Five Year Implementation Plan (2009-10 through 2013-14) November 2009 – DRAFT ___________________________________________________ City of Arroyo Grande Redevelopment Agency P.O. Box 550 214 East Branch Street Arroyo Grande, California 93421 ß¹»²¼¿ ×¬»³ çò½ò Ð¿¹» é ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) City of Arroyo Grande City of Arroyo Grande Council Members/Agency Board Members Mayor/Chair Tony M. Ferrara, Mayor Pro Tem/Board Member Joe Costello, Council/Board Member Jim Guthrie, Council/Board Member Ed Arnold, Council/Board Member Chuck Fellows, Redevelopment Agency Staff Executive Director Steven Adams, Director of Community Development Teresa McClish, Prepared by Redevelopment Agency Consultant: ß¹»²¼¿ ×¬»³ çò½ò Ð¿¹» è ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) Table of Contents Introduction.....................................................................................1 Contents of the Implementation Plan.................................................................2 Background.....................................................................................7 Plan Limitations.................................................................................................10 Goals of the Redevelopment Plan...................................................................12 Blighting Conditions..........................................................................................17 Blighting Conditions Present in Project Area...................................................18 Redevelopment Projects and Programs.......................................19 Implementation Plan Objectives......................................................................19 Financial Resources.........................................................................................20 Forecasted Programs and Projects.................................................................23 How Agency Goals and Objectives will Eliminate Blighting Conditions in the Project Area......................................................29 Housing..........................................................................................31 Administration of the Implementation Plan.................................42 Implementation Plan Adoption Process...........................................................42 Implementation Plan Review Process.............................................................42 ß¹»²¼¿ ×¬»³ çò½ò Ð¿¹» ç ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) Introduction The City of Arroyo Grande Redevelopment Agency (“Agency”) has prepared this Five- Year Implementation Plan (“Implementation Plan”) for the Arroyo Grande Redevelopment Project Area (“Project Area”). This Implementation Plan presents the Agency’s goals and objectives, anticipated projects and programs, and estimated expenditures for the five- year planning period (covering fiscal years 2009-10 through 2013-14). This Implementation Plan will guide the Agency’s actions in implementing key redevelopment projects in the Project Area. A mid-term review and update of this Implementation Plan will take place between the second and third years after the adoption date (expected in Fiscal Year 2011-2012). Pursuant to Section 33490 of the California Redevelopment Law, Health and Safety Code Section 33000 et seq. (“Law”), the Implementation Plan serves as a strategy document that will guide current and future projects and programs by the Agency to: 1. Encourage the redevelopment of the Project Area subject to and consistent with the City’s General Plan and/or specific development plans as may be adopted from time to time through the cooperation of private enterprise and public agencies; 2. Enhance the long term economic well-being of the community; 3. Provide for the rehabilitation of commercial and industrial structures and residential dwelling units; 4. Provide public infrastructure improvements and community facilities, such as the installation, construction, and/or reconstruction of streets, utilities, public buildings and facilities (such as facilities for pedestrian circulation and parking facilities), storm drains, utility undergrounding, or structures, street lighting, landscaping and other improvements which are necessary for the effective redevelopment of the Project Area; 5. Provide for participation in the redevelopment of property in the Project Area where feasible by owners who agree to so participate in conformity with the Redevelopment Plan; 6. Encourage joint efforts and cooperative efforts among property owners, businesses and public agencies to achieve desirable economic development goals and programs and to reduce or eliminate existing blighting conditions; 7. Increase, improve and preserve the community’s supply of affordable housing. TIERRA WEST ADVISORS ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò NOVEMBER 2009PAGE 1 Ð¿¹» ïð ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) Adoption of this Implementation Plan does not approve any of the projects listed herein. Projects to be undertaken by the Agency are subject to discretionary approvals by the Agency, as well as environmental clearance as determined by staff. Pursuant to Section 33490(a)(1)(B) of the Law, adoption of an implementation plan shall not constitute a “project” within the meaning of the California Environmental Quality Act (CEQA, Public Resources Code Section 21000 et seq.), and inclusion of any project or program in the implementation plan shall not eliminate environmental analysis and clearance that would . otherwise be required Contents of the Implementation Plan Section 33490 of the Law requires this Implementation Plan to include the following: Specific Agency goals and objectives for the Arroyo Grande Redevelopment Project Area; Specific programs, potential projects, and estimated expenditures proposed by the Agency over the five-year planning period; and An explanation of how Agency goals, objectives, programs, and expenditures will eliminate blight within the Project Area and improve and increase the supply of housing affordable to very low, low, and moderate income households. The Law provides that the Implementation Plan also include the Agency’s plans, projects, and expected expenses to meet its low- and moderate-income housing requirements over the subject Implementation Plan period. The overriding goal of the Agency’s activities is to eliminate and prevent the expansion of blight in the Project Area, as well as to maintain and improve the stock of housing affordable to its low- and moderate-income residents. Accordingly, the housing component portion (“Housing Production Plan”) of the Implementation Plan analyzes the City’s applicable housing requirements and identifies units, projects, and expenditures that it plans to undertake in meeting such mandates. This explanation must include a detailed annual implementation plan for each of the five years covered by the Plan in order for performance to be measured. Additionally, the following must be included: The amount of money available in the Housing Fund, the amount of money expected to be deposited during the next five years and how those annual deposits to the Housing Fund will be spent. The estimated number of units to be provided over the next five and ten years to meet the Agency’s 15 percent inclusionary housing requirements, if applicable. TIERRA WEST ADVISORS ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò NOVEMBER 2009PAGE 2 Ð¿¹» ïï ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) The number of qualifying very low-, low-, and moderate-income units that have been produced in the project area, and the number of additional units that will be required to meet the inclusionary housing requirements. The number of units that will be developed by the Agency, if any, including the number of units that the Agency will make available for very low-, low- and moderate- income households. If a planned public improvement or development project will result in destruction of existing affordable housing, an identification of proposed locations for their replacement will be required (Section 33413 of the Law). The affordable housing production plan (Section 33413(b)(4) of the Law). Assembly Bill 637 Requirements Assembly Bill 637 (“AB 637”) created additional housing requirements on redevelopment agencies. It eliminated the sunset for most of the provisions in AB 1290 which had been in effect since January 1, 1994. AB 1290 contained a number of modifications to the inclusionary and housing production requirements contained in Section 33413(b) of the Law. The issues addressed by AB 637 include: Targeting housing funds to the different income and age groups. 100 percent of removed or destroyed affordable units need to be replaced instead of 75 percent. Agency must keep a list of those persons displaced and who are to be given priority in the replacement housing plan. Establishes regulations of how and where Housing Funds may be used for onsite or offsite improvements. Covenants increased from 10 to 45 years in the case of owner occupied units, and from 15 to 55 years in the case of rental housing. Housing Funds are to be used only to the extent other reasonable means of private or commercial financing is not reasonably available. The Agency is required to spend the Housing Fund in at least the proportion of the total housing need for each of the income groups as determined for the City pursuant to Section 65584 of the Government Code (Regional Housing Needs Assessment). In addition, the Agency shall expend, over the duration of each redevelopment implementation plan period, the Housing Fund to assist housing that is available to all TIERRA WEST ADVISORS ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò NOVEMBER 2009PAGE 3 Ð¿¹» ïî ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) persons regardless of age in at least the same proportion as the population under 65 years of age in relation to the total population of the community as reported by the United States Census Bureau. In accordance with Section 33490(a)(2)(A)(iii) of the Law, the first time period to implement the requirements for targeting of Housing Funds is on or before December 31, 2014, and each ten years thereafter. TIERRA WEST ADVISORS ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò NOVEMBER 2009PAGE 4 Ð¿¹» ïí ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) Senate Bill 701 Requirements Senate Bill 701 clarifies how AB 637 is to be implemented. The Agency will have until 2014 to comply with the legal requirements outlined in AB 637. Organization of the Implementation Plan Section I of the Plan provides a basic discussion of the requirements under the Law, Project Areas Descriptions and Background, as well as goals and objectives for the Project Areas. Section II summarizes the Agency’s proposed non-housing activities and corresponding revenues and expenditures for the next five years, and provides a description of the blighting conditions and how these conditions will be alleviated by the Agency’s proposed activities. Section III addresses the affordable housing activities and expenditures and charts the Agency’s progress in providing affordable housing, along with the Affordable Housing Production Plan. Section IV discusses the responsibilities and regulations governing the administration of the Implementation Plan. The Project Area includes properties inside the City boundaries with certain parcels located north and south of Highway 101. The boundaries of the Project Area are depicted in the following map: TIERRA WEST ADVISORS ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò NOVEMBER 2009PAGE 5 Ð¿¹» ïì ß¹»²¼¿ ×¬»³ çò½ò Ð¿¹» ïë ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) SECTION I Background The City Council of the City of Arroyo Grande (“City Council”) activated the Agency on August 27, 1996 through its adoption of Ordinance No. 479CS. On June 10, 1997 the City Council approved and adopted Ordinance No. 487CS, which established the Project Area and the Redevelopment Plan (“Redevelopment Plan”), which governs the activities of the Agency within the Project Area. Subsequently, on January 13, 2004, the City Council adopted Ordinance No. 551 which amended the Redevelopment Plan to extend by one (1) year both the life of the Redevelopment Plan and the period of time during which the Redevelopment Agency may receive tax increment from the Project Area. The Project Area consists of is approximately 510 acres of commercial, industrial, institutional/governmental/open Space, residential and vacant land uses. ARROYO GRANDE PROJECT AREA Land Use Breakdown # of Land Use CategoryParcels Commercial237 Governmental24 Industrial9 Institutional/Medical/Religious29 Office73 Miscellaneous56 Residential156 Vacant Commercial74 Vacant Industrial1 Vacant Residential2 TOTALS661 Two factors shaped the Agency’s early implementation activities of the Redevelopment Plan. The large size of the Project Area and the limited amount of total tax increment funds expected in the first years of implementation posed a challenge for the Agency’s mandate to undertake redevelopment activities throughout the entire Project Area. The Agency created an implementation strategy to focus redevelopment efforts on developing a general economic development program for the City and to concentrate investment of TIERRA WEST ADVISORS ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò NOVEMBER 2009PAGE 7 Ð¿¹» ïê ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) its funds in sections of the Project Area with characteristics that fit within certain “Categories of High Potential” for economic development. These areas were generally located within the selected Principal Improvement Zones (“Zones”). The underlying strategy was to invest the Agency’s limited resources in areas of the Project Area that held the greatest potential for economic development; the resulting increase in economic activity in these Zones would then lead to further private investment and greater tax increment funds available for Agency investment, throughout the Project Area. The following map shows the four Zones identified by the Agency for focused revitalization within the Project Area. TIERRA WEST ADVISORS ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò NOVEMBER 2009PAGE 8 Ð¿¹» ïé ß¹»²¼¿ ×¬»³ çò½ò Ð¿¹» ïè ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) The Agency’s first Implementation Plan was adopted in May 1999 as an Operations Plan, which outlined a “road map” of projects and programs that the Agency could implement as steps to accomplish the goals and objectives of the Redevelopment Plan. An accompanying document, the Resource Guide, provides the Agency with information and analysis of the various implementation processes and procedures necessary throughout the various phases of the implementation plan route. The Operations Plan identified certain parcels as Primary or Key sites (“Key Sites”) for redevelopment within the Zones, which were determined to represent the greatest potential for serving as catalysts for economic revitalization. Secondary sites (“Secondary Sites”) were identified, which were primarily vacant or underutilized properties, and were easy to develop. The Operations Plan sought to provide a framework for implementing potential projects, programs, and processes to pursue. This Implementation Plan will guide the activities of the Agency for the planning period from 2009-10 through 2013-114 Plan Limitations When first approved and adopted, the Arroyo Grande Redevelopment Plan contained time, debt and other limitations to the use of the redevelopment tools and mechanisms. The following table outlines the Project Area’s main benchmarks including date of adoption, date of effectiveness and the time limit to collect tax increment: Expiration of Eminent Maximum Timeframe to Redevelopment Domain Bonded Collect Tax Adoption DatePlanTime LimitIndebtednessIncrement June 10, 1997June 10, 2028Expired750,000,000.00$ June 10, 2039 Over the past five years, the Agency has pursued several of the programmatic and/or project-based objectives outlined in the first Implementation Operations Plan. Consistent with the principles articulated in said document, the Agency focused on implementing the programmatic efforts that did not necessitate large capital and/or financial resources given the small amount of tax increment funds estimated for the initial years of life of the Project Area. To the extent that its financial resources allowed, the Agency has undertaken some street enhancement and other public improvements in the Project Area. Nonetheless, the following description of some of these accomplishments provides a picture of the momentum for economic redevelopment: TIERRA WEST ADVISORS ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò NOVEMBER 2009PAGE 10 Ð¿¹» ïç ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) The Long’s Center on the South East Corner of East Grand Avenue and Courtland Avenue is a clear example of the potential for economic development in the City and the catalyzing effect that redevelopment tools can have. In partnership with the private developer, the Agency assisted the redevelopment of this once vacant commercial property by acquiring the back side of the property for expansion of the existing retention basin, which the developer completed. TIERRA WEST ADVISORS ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò NOVEMBER 2009PAGE 11 Ð¿¹» îð ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) The Santa Lucia Bank, located diagonally across the Longs Center on the Northwest corner of East Grand Avenue and Courtland Avenue, provides further evidence of the economic revitalization that can be achieved via the Agency’s use of redevelopment funds. The Agency’s assistance was provided to the senior affordable housing project, which is part of this mixed-use development. The street sign is the entrance to the "Gateway" segment of E. Grand Avenue. The landscaped median and “Welcome” sign are among some of the Agency’s efforts to make the City’s main arteries, and streets in general, more attractive and welcoming of visitors and tourists. Goals of the Redevelopment Plan A key element of the Redevelopment Component includes the goals and objectives that guide the activities of the Agency in eliminating blight in and revitalizing the Project Area. Given the Agency’s strategic focus on investing its limited financial resources on areas within the Project Area with the highest potential for economic revitalization, the Agency and the City Council have specific goals and objectives for each of the Principal Improvement Zones as well as for the entire Project Area. The Agency has initiated a strategic focus on green technology (”Green Tech”) for business expansion and attraction efforts over the next five year implementation plan period. A green corridor has been designated within the project area. Below is a description of the goals and objectives formulated by the Agency. TIERRA WEST ADVISORS ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò NOVEMBER 2009PAGE 12 Ð¿¹» îï ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) East Grand Avenue Improvement Zone Goal Statements: 1. Encourage redevelopment/development of commercial projects and programs that help to expand the community’s economic base, provide new jobs, business development and retention opportunities, and goods and services for residents and visitors in Arroyo Grande. 2. Help to provide necessary public works, landscaping, street and hardscape improvements and/or facilities, which will help to facilitate redevelopment/development of land in this Improvement Zone. Agency Implementation Program Objectives: Improved Lighting Standards Storefront Upgrades Design Assistance Infrastructure Upgrades Promotions for Special Events and Other Activities Business Attraction/Retention Relocation Assistance Graffiti Removal Transportation/Circulation Improvements Land Assembly, Acquisition and Disposition Buildings and Other Structures Demolition Site Preparation Hazardous Substance Removal and Disposal Planning and Other Professional Services Financial Assistance TIERRA WEST ADVISORS ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò NOVEMBER 2009PAGE 13 Ð¿¹» îî ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) Streetscape Improvements Creation of Public Open Space and Other Public Facilities. Village Commercial District Improvement Zone Goal Statements: 1. Assist in preserving and expanding the Village Commercial District. 2. Provide necessary public works improvements and/or facilities that will facilitate implementation of Goal No. 1. 3. Assist in attracting hospitality, specialty retailing and restaurants to the Village. Agency Implementation Program Objectives: Improved Lighting Standards Storefront Upgrades Design Assistance Infrastructure Upgrades Promotions for Special Events and Other Activities Business Attraction/Retention Relocation Assistance Graffiti Removal Transportation/Circulation Improvements Land Assembly, Acquisition and Disposition Buildings and Other Structures Demolition Site Preparation Hazardous Substance Removal and Disposal TIERRA WEST ADVISORS ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò NOVEMBER 2009PAGE 14 Ð¿¹» îí ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) Planning and Other Professional Services Financial Assistance Streetscape Improvements Creation of Public Open Space and Other Public Facilities. El Camino Real/Brisco Road Improvement Zone Goal Statements: 1. Attract and retain freeway commercial development 2. Improve freeway access. Agency Program Implementation Objectives: Business Attraction Planning and Other Professional Assistance Streetscape Improvements Circulation, Transportation and Traffic Improvements Financial Assistance Hazardous Substance Removal and Disposal Land Assembly, Acquisition and Disposition Infrastructure Upgrades Relocation Assistance Buildings and Other Structures Demolition Business Development. Traffic Way Improvement Zone Goal Statements: TIERRA WEST ADVISORS ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò NOVEMBER 2009PAGE 15 Ð¿¹» îì ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) 1. Assist in the retention and expansion of the existing automotive dealers. 2. Provide assistance to those land uses that are compatible with both the Village and Traffic Way Districts. Agency Implementation Program Objectives: Land Assembly Promotion/Marketing Circulation/Infrastructure Upgrades/New Construction Site Preparation Planning and Other Professional Assistance Facilitation and Expediting of Permit/Approval Processes Negotiation Assistance Affordable Housing. While the goals and objectives above are directed at the Principal Improvement Zones, the Agency’s mandate and policy is to seek redevelopment opportunities and projects that will enhance the economic and physical well-being of the entire Project Area. Thus, these goals and objectives also articulate the Agency’s intent and vision for neighborhoods throughout the Project Area, including those not in the Zones. TIERRA WEST ADVISORS ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò NOVEMBER 2009PAGE 16 Ð¿¹» îë ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) SECTION II Blighting Conditions The redevelopment tools contained in the Law are granted for use in a project area in order to eliminate and prevent the prevalence of blighting conditions in such area. A blighted area is one that necessitates the creation of a redevelopment project area because the combination of conditions in an area constitute a burden on the community and cannot be alleviated by private enterprise, governmental action, or both. The following criteria are used in the process of identifying an area as blighted: Unsafe/Dilapidated/Deteriorated Buildings. Buildings and structures in which it is unsafe or unhealthy for people to live or work. Long-term neglect that result in serious dilapidation and deterioration, faulty or inadequate water or sewer utilities, and other similar conditions can lead to such conditions. Physical Conditions that Limit the Economic Viability and Use of Lots/Buildings. Factors that prevent or substantially hinder the economically viable use or capacity of buildings or lots. Given the current needs, market conditions, and standards of the Project Area, these conditions may result from substandard design, inadequate size of parcels, lack of parking and other related factors. Incompatible Land Uses. Adjacent or nearby uses that are incompatible with each other and prevent the economic development of those parcels or other portions of the project area. Lots of Irregular Shape, Inadequate Size, and Under Multiple Ownerships. The existence of subdivided lots in multiple ownership that are of irregular form and shape and inadequate size for proper usefulness and development given present general plan and zoning standards and present market conditions.. Depreciated or Stagnant Property Values and/or Impaired Investments. Depreciated or stagnant property values or impaired property values, due in significant part to hazardous wastes on property where the agency may be eligible to use its authority as specified in Article 12.5 (commencing with Section 33459 of the Law). High Business Turnovers and Vacancies/Low Lease Rates/Abandoned Buildings/Vacant Lots. Abnormally high business vacancies, abnormally low lease rates, high turnover rates, abandoned buildings, or excessive vacant lots within an area developed for urban use and served by utilities. TIERRA WEST ADVISORS ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò NOVEMBER 2009 PAGE 17 Ð¿¹» îê ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) Lack of Neighborhood Commercial Facilities. A lack of necessary commercial facilities that are normally found in neighborhoods, including grocery stores, drug stores, and banks and other lending institutions. Overcrowding/Excess of Adult Businesses. Residential overcrowding or an excess of bars, liquor stores, or other businesses that cater exclusively to adults that has led to problems of public safety and welfare. High Crime Rates. A high crime rate that constitutes a serious threat to the public safety and welfare. Furthermore, Section 33030(c) of the Law also states that a blighted area may be one that contains inadequate public improvements, parking facilities, or utilities when other blighting conditions are also present. Blighting Conditions Present in Project Area Over the past five years, the Agency’s redevelopment activities have achieved notable improvements and have laid the foundation on which to continue the process of improving the economic and quality of life conditions of the Arroyo Grande community. Nonetheless, the journey toward the desired destination is still characterized by conditions of physical and economic blight, which shall remain the focus of the Agency’s redevelopment efforts over the 2009-10 to 2013-14 period of this Implementation Plan. Some of the remaining blighting conditions include: 1. Buildings in which it is unhealthy for persons to live or work due to deferred maintenance, defective design or physical conditions or faulty or inadequate utilities; and 2. Factors that prevent or substantially hinder the economically viable use or capacity of buildings or lots due to substandard design; and 3. Adjacent or nearby uses that are incompatible with each other and which prevent the economic development of those parcels or other portions of the Project Area; and 4. Conditions negatively impacting property values, the proper and potential utilization of parcels and impairing investments; and 5. The existence of inadequate public improvements, parking facilities or utilities. TIERRA WEST ADVISORS ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò NOVEMBER 2009PAGE 18 Ð¿¹» îé ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) Redevelopment Projects and Programs To implement the redevelopment projects and programs, the Agency will seek a mix of funding mechanisms including tax increment revenues, bonded debt, partnerships and financial assistance from the County of San Luis Obispo, the State of California, and/or the Federal Government. The guiding objectives of the Agency redevelopment efforts are to provide community confidence and a positive outlook that will encourage private investment of the Project Area’s industrial, retail, and commercial activity, the expansion of employment opportunities, as well as the improvement of the quality of life of the residents. A summary and description of the Agency projects and programs planned for the existing Project Area, during the 2009-10 to 2013-14 Implementation Plan period is provided below. Estimates of the related expenditures are based on staff projections and may change according to market conditions, fund availability, and project revenues. Implementation Plan Objectives Consistent with the Work Plan schedule suggested in the initial Implementation Operations Plan, the Agency has covered significant ground in achieving initial Implementation Plan phase objectives. During the 2009-10 to 2013-14 period of this Implementation Plan, the Agency plans to continue building on those efforts and begin to pursue those objectives and activities generally planned for the Mid- and Long-term Implementation Plan phases, which are more capital and project focused. Such actions and objectives include: Strengthen the City’s and Project Area’s capacity to capture a greater share of the Regional Economic Growth and Opportunities; Pursue projects that will help solidify and enhance the City’s and Project Area’s financial base; Identify opportunities to assist and support industrial, commercial, and/or residential property owners in upgrading and marketing their properties; Expand employment opportunities for City residents; Improve the overall quality of life of the community, including upgrades to public facilities and infrastructure, parks and recreation, and public safety; Identify opportunities to support home owners in improving their homes and continue to protect and expand the supply of housing available to low- and moderate-income households. TIERRA WEST ADVISORS ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò NOVEMBER 2009PAGE 19 Ð¿¹» îè ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) As was the case in the initial years, the Agency’s practical pursuit of the objectives outlined above will largely depend on the availability of funds and debt obligations. Financial Resources Over the past five years, tax increment revenues, interest income, and loans from other City Funds have generated the funds available for the Agency to invest in the Project Area. For the purposes of this Implementation Plan, a detailed projection of the tax increment and other sources of revenue, in addition to the various project expenditure items, are provided for the Planning Period. This table provides a financial framework within which the projects and programs proposed in the Arroyo Grande Redevelopment Plan will be executed. In addition to the tax increment revenue estimated from existing properties, the Agency expects that the 15 to 20 projects under discussion, whose completion is expected over the next five years will produce additional tax increment value for the Agency’s use. The tax increment revenue projections assume a growth rate of 2% on secured assessed values as permitted under Law. The passage of Proposition 13 in 1978 modified Article XIIA of the California Constitution and brought a change in the manner for annual assessments in the state of California. Proposition 13 set a 2% growth rate for annual inflation when reassessments are made by County Assessors throughout California. The 2% growth rate was established regardless of the market changes occurring within individual cities or communities. However, property sales, new development, property rehabilitation or other actions that trigger reassessments by the County Assessor allow the Assessor to adjust the property value of an individual parcel to its present market value. The projections also take into account statutory pass through payments pursuant to Section 33607.5 of the Law, basic aid school district payments pursuant to Section 33676(b)(1) of the Law, and administration fees charged pursuant to SB 2577. Statutory Pass-Through Payments The Project Area must make pass-through payments to Project Area taxing entities pursuant to Section 33607.5 of the Law. The payments are structured in three tiers with the affected taxing entities receiving a share of the net tax increment revenue (net low- to moderate-income housing set aside) starting in the first year the Agency receives tax increment and continuing through the 46 years the Agency collects tax increment revenue. The first tier allocates 25% of the net tax increment revenue to each taxing entity from tax increment years 1 through 46. In the 11th and 31st years of tax increment received, the Agency pays an additional 21% and 14% respectively, of the net tax TIERRA WEST ADVISORS ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò NOVEMBER 2009PAGE 20 Ð¿¹» îç ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) increment. The 10th and 30th years serve as adjusted base years for these second and third tier payments. The statutory pass-through payments will be subordinate to the debt service payments for the bonds because the Agency followed the procedures required by the Law to request subordination for the taxing entities that share the Project Area tax increment revenue. Pursuant to Section 33607.5 of the Law the Agency presented substantial evidence to the taxing entities that the redevelopment agency will have sufficient funds available to pay the debt service on the proposed bonds and to make the statutory pass-through payments. The 45 day time frame for contesting the subordination request elapsed and the statutory pass-through payments will be subordinate to the debt service payments for the bonds. Basic Aid School District Payments The Agency must pay an additional pass-through to the San Luis Obispo County Office of Education, which is designated as a “basic aid” pursuant to Section 33676(b) (1) of the Law. Since 1920, the California State Constitution has required that the state provide a minimum state aid for public education of $120 per average daily attendance (“ADA”). A Basic Aid School District is a district whose property tax revenues exceeds the minimum annual State required revenue and is not eligible for distributions from Supplemental tax revenues or Education Revenue Augmentation Fund (ERAF). There are traditionally 45 to 55 districts that are basic aid each year. The Agency was established after 1994 (post Assembly Bill 1290), which requires the Agency to make statutory pass through payments pursuant to Health & Safety Code Section 33607.5 to all affected taxing entities. This is an amount equal to 25% of the total tax increment received once the required Low & Moderate Income Housing deposit has been deducted in Tier 1 (21% in Tier 2 and 14% in Tier 3). The calculation for Basic Aid school districts is codified in Health & Safety Code Section 33676(b)(1), which requires any basic aid district within the boundaries of a redevelopment project area to receive an additional amount equal to the lesser of: a. the percentage growth in the Basic Aid district’s total assessed value exclusive of the portion within the Project Area, or b. 80% of the portion of the Basic Aid district within the Project Area. Health & Safety Code Section 33676 (b)(4) requires the amount that the Basic Aid district receives is basic aid district receives pursuant to Sections 33607.5 and 33607.7 reduced for payments made for purposes of the Education Code §42238(h)(1). TIERRA WEST ADVISORS ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò NOVEMBER 2009PAGE 21 Ð¿¹» íð ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) When Assembly Bill 1290 was approved by State Legislature, Health & Safety Code Section 33607.5 did not anticipate that basic aid school districts could make a profit off of the redevelopment agency by receiving more pass-through than the Basic Aid school district contributes in increment. For the Agency the Basic Aid school district is receiving more in total revenue than if the Project Area did not exist. All Health & Safety Code Sections that were approved through Assembly Bill 1290 state that pass-through payments must be net of Low & Moderate Income Housing Set-Aside. Therefore, no pass-through payments should ever exceed 80% of the increment contributed. The pressing issue for the Agency’s Project Area is that the Statutory Pass Through payments in Tier 1 results in the pass-through to the Basic Aid School District exceeding the Basic Aid School District increment contribution. The Tier 2 and Tier 3 pass-through payments will only increase the amount of the over-payment. Corrective legislation is necessary to the amend Health & Safety Code Section 33676(b)(1). The Auditor Controller’s Office is working with the County Office of Education regarding this issue and the County Office of Education has agreed that the Basic Aid amounts should never be more than what the Basic Aid School Districts would have been entitled to if the Agency’s Project Area did not exist (more than their contributed increment). The County Office of Education does not agree with the premise that all pass-throughs should be net of the 20% housing set-aside. The County Office of Education believes that the basic aid pass-through should stand on it's own, separate from the mandatory AB1290 pass-through payments as they are governed by different code sections. The Auditor Controller is a neutral party in this issue and has been withholding the disputed Basic Aid amounts and depositing them into an interest bearing account until the some resolution is reached among the affected parties. The Auditor Controller has been doing this at the request of the redevelopment agencies in the County, and with the approval of the Board of Supervisors in an effort to facilitate a resolution to this issue. This Implementation Plan does not include these Basic Aid payments as an expenditure because the Auditor Controller is setting aside the calculation for the Basic Aid payments in an impound account and the Agency’s revenue will not include these amounts. During the Planning Period for this Implementation Plan the Agency will work with the County Office of Education and other interested parties to bring about an agreed upon process to do one of the following: Seek a court decided legal analysis/interpretation of the Health & Safety Code Section related to Basic Aid Payments, or TIERRA WEST ADVISORS ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò NOVEMBER 2009PAGE 22 Ð¿¹» íï ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) seek an amendment to the Health & Safety Code Section related to Basic Aid Payments, which could state that the Basic Aid Payments are “up to and equal to 80%” or that “Basic Aid Districts get 80% of its contribution returned.” Tax Increment Administration Fee Actual tax increment revenue received by the Agency is reduced to reflect the administration fees charged by the County Auditor-Controller pursuant to Senate Bill 2577 and Assembly Bill 1924. This administration fee varies slightly from year-to-year because pursuant to Revenue and Taxation Code 97 it must be based on actual costs associated with assessing, collecting, and allocating property tax revenues. Forecasted Programs and Projects The following provides a brief summary of 23 potential future projects and programs under consideration by the Agency, both in and outside the Project Area. Estimates of the expenditures they will require over the life of this Implementation Plan are provided. 1. A proposed mixed use project is under consideration for the Courtland/Grand Avenue location. The project will include commercial uses at the front of the project site and a 100% affordable residential development at the back. The residential nonprofit housing development partner, Peoples Self Help Housing, is proposing approximately 36 units at the very low and low income affordability level featuring large square footage to accommodate families. The project approval is underway during fiscal year 2009/2010. Construction is expected to begin in fiscal year 2011/2012. 2. The Agency is pursuing a redevelopment and rehabilitation project at the southwest corner of Elm and Grand to assist an underachieving commercial property. The project will increase the overall leasable area, remove and replace some existing dilapidated commercial space, and rehabilitate other commercial buildings currently on the site. The project is expected to result in a significant upgrade of the commercial tenants and should be underway toward the end of the 2010/2011 fiscal year. 3. The Agency will facilitate the negotiation process between Pacific Gas and Electric and the City of Arroyo Grande for the undergrounding of utilities on East Grand Avenue between Halcyon and Courtland. One segment has already been completed. The negotiations are expected to begin in fiscal year 2009/2010 and should conclude with activities beginning in 2011 or 2012. TIERRA WEST ADVISORS ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò NOVEMBER 2009PAGE 23 Ð¿¹» íî ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) 4. The Agency is currently in discussion with property owners regarding a potential land swap that will enable the city to expand an important parking facility behind the current City Council Chambers building in the Village. The potential land swap will also facilitate the availability of land for a mixed use project that may include an affordable housing component. The land swap is expected to be complete during fiscal year 2009/2010. 5. The Agency is facilitating the discussion to redevelop a grocery store at Mason and East Branch in the Village. The property owner is a grocery store owner, Scolari, and development groups have expressed interest in the site. No Agency funding is expected for the project which should be under construction in 2010/2011. 6. The Agency expects a new mixed use development project to be under construction at East Branch in the next few years. The project, De Blauw, has already received approval from the City and is awaiting a more favorable economic climate. 7. The Agency is working toward the redevelopment of a blighted former residential site at El Camino and Bennett. The project entails a land swap that will make another affordable housing project a reality. The project will create a new space for the VCA Animal Hospital expected in fiscal year 2009/2010. The lost residential unit will be replaced via the Peoples Self Help Housing project expected at the Courtland Grand project. 8. The Faeh and El Camino vacant property near the 101 Freeway is the site for a newly expanded “Park and Ride” facility which should be complete in fiscal year 2009/2010. The remainder of the property is slated for a new mixed use and visitor serving center with the assistance of Agency funding for public improvements to the site in fiscal year 2010/2011. 9. A potential fast food development project is being proposed for El Camino near the 101 Freeway adjacent to the current Arco gas station. Potential fast food operators have been identified as tenants and a long term property owner is being sought. The Agency has been active in the marketing of the project site and facilitation of discussions between developers and tenants. The project is expected to be under construction in fiscal year 2010/2011. 10. The Agency will be providing partial funding for the El Camino Real streetscape improvement project in 2009/2010 and 2010/2011. 11. The Agency is funding design costs l for development of a new Police facility at West Branch and Rodeo. The site is outside of the Project Area, The existing station, within the Project Area, will be marketed for office, commercial or affordable housing uses, with possible Agency funding assistance. TIERRA WEST ADVISORS ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò NOVEMBER 2009PAGE 24 Ð¿¹» íí ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) 12. The Agency is discussing the annexation of County property below Canyon Crest (Pearwood) that is outside of the project area. If annexed and acquired using set aside funds, the property will accommodate four lots and a drainage easement. The Agency/City is working on annexation and a tentative map in fiscal year 2009/2010. The ultimate goal of the project will be to prepare the site for development and sell or swap the site for a site within the project area for higher density affordable housing. 13. The Agency has approved funding assistance for a housing assistance project for Transitions, a nonprofit organization that provides mental health support for the community. The project site is located just outside the project area. The project will be a five unit affordable studio apartment complex when completed. 14. A “green corridor” has been established by the Agency on El Camino Real between Oak Park and East Grand Avenue. The Agency is working with private sector businesses to establish a “ Green Center” which will market alternative fuels and vehicles, as well as other green products. Green Enterprise businesses will be attracted over the next five year implementation plan period. 15. The Agency is considering development of a new historic restoration and rehabilitation incentive program for fiscal year 2010. 16. The Agency is working toward the conversion of a property in the East Branch and Short Street area to become a new downtown plaza. The project will include new retail and restaurant uses expected for construction in fiscal year 2010/2011. 17. The Agency has provided funding for a Façade Improvement Programwhich targets a portion of the project area. 18. The Agency is looking forward to the development of a mixed use project at Elm and East Grand Avenue byfiscal year 2013/2014. 19. Discussion has begun for restaurant and theater uses adjacent to the Fair Oaks Theater on East Grand. The Agency is facilitating discussion with developers and potential tenants and expects activity in fiscal year 2012/2013. 20. An office and residential mixed use project is expected for the property at Oak Park and El Camino. The site is approximately 2 acres and is expected to get underway in fiscal year 2012/2013. 21. The Agency will consider assisting the eastward expansion of the East Grand Avenue streetscape improvement project in fiscal year 2012/2013. TIERRA WEST ADVISORS ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò NOVEMBER 2009PAGE 25 Ð¿¹» íì ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) 22. The Agency is considering a commercial development on a vacant parcel that is approximately one acre located at the Southeast corner of E. Grand and S. Halcyon. The project is expected to begin in fiscal year 2012/2013. 23. The Agency is discussing a boutique hotel for a gateway location for the Village on the south side of W. Branch on a 2 acre vacant site that is adjacent to the Chevron station at the northbound off-ramp from the 101 Freeway. The project is expected to move forward in fiscal year 2013/2014. The Agency may try to acquire the vacant land and re-sell the portion on the south side of the creek to the adjacent commercial (approx 2 acres) owner and use the portion on the north side of the creek (1-acre) or an alternate site in the Village for the hotel. 24. There are a number of blighted properties owned by an absentee property owner and landlord that has left sties vacant, underdeveloped, unsightly, or leased to under performing tenants. The Agency proposes a program of working with the owner and other property owners on ways to stimulate development and improvements to these properties. TIERRA WEST ADVISORS ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò NOVEMBER 2009PAGE 26 Ð¿¹» íë ß¹»²¼¿ ×¬»³ çò½ò Ð¿¹» íê ß¹»²¼¿ ×¬»³ çò½ò Ð¿¹» íé ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) How Agency Goals and Objectives will Eliminate Blighting Conditions in the Project Area The Agency has formulated the following redevelopment goals and objectives as a means to eliminate and prevent the recurrence of the existing blighting conditions in the Project Area: 1. Encourage the redevelopment of the Project Area subject to and consistent with the City’s General Plan and/or specific development plans as may be adopted from time to time through the cooperation of private enterprise and public agencies; 2. Enhance the long term economic well-being of the community through business partnerships and business assistance programs; 3. Provide for the rehabilitation and upgrade to modern standards of commercial and industrial structures and residential dwelling units; 4. Provide public infrastructure improvements and community facilities, such as the installation, construction, and/or reconstruction of streets, utilities, public buildings and facilities (such as facilities for pedestrian circulation and parking facilities), storm drains, utility undergrounding, or structures, street lighting, landscaping and other improvements which are necessary for the effective redevelopment of the Project Area; 5. Provide for participation in the redevelopment of property in the Project Area where feasible by owners who agree to so participate in conformity with the Redevelopment Plan; 6. Encourage joint efforts and cooperative efforts among property owners, businesses and public agencies to achieve desirable economic development goals and programs and to reduce or eliminate existing blighting conditions; 7. Increase, improve and preserve the community’s supply of affordable housing; Effective implementation of projects and programs that aim to achieve these goals is consistent with the Agency’s mandate to eliminate and prevent the prevalence of physical and economic blighting conditions in the Project Area. By supporting existing homeowners in efforts to upgrade their properties, assisting potential homeowners in purchasing houses, and providing assistance to renters, the Agency will help preserve and expand housing opportunities available to low- and moderate-income households. In supporting existing and attracting new retail, commercial, and industrial, the Agency can work toward expanding employment opportunities for residents in the Project Area and Citywide. TIERRA WEST ADVISORS ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò NOVEMBER 2009PAGE 29 Ð¿¹» íè ß¹»²¼¿ ×¬»³ çò½ò Ð¿¹» íç ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) SECTION III - Housing Production Plan This section of the Implementation Plan describes the obligations the Agency will undertake pursuant to requirements under California Redevelopment Law. This housing component of the Implementation Plan contains the following: An account of available Housing Funds and the estimated amounts to be deposited in the Housing Fund during each of the next five years. A housing program that estimates the number of new, rehabilitated, restricted units to be assisted during each of the next five years by the Agency and estimates of Housing Fund expenditures for each of the next five years. A description of how the housing program will implement the requirements to spend the Housing Funds over a ten year period for the various groups as required by Redevelopment Law. The Agency is also guided by the City of Arroyo Grande Housing Element as part of the General Plan. The goals, policies, and strategies described in this section are intended to be implemented by the Agency. Requirements: Agency’s Statutory Affordable Housing Obligations The Agency must allocate no less than twenty percent of its gross tax increment to the Housing Fund for the purpose of increasing, improving and preserving the supply of housing available to low and moderate income households. Housing units assisted with Housing Funds prior to January 1, 2002 must remain affordable for the longest feasible time, but not less than 10 years for owner-occupied units and 15 years for renter occupied units. In addition, Senate Bill 211 approved by the legislature in 2001 requires Agencies, on or after January 1, 2001, to require housing units assisted with Housing Funds to remain affordable for the longest feasible time, but no less than 45 years for owner occupied units and not less than 55 years for rental units. The Arroyo Grande Project Area has an inclusionary housing requirement and is subject to the housing production provisions of Section 33413 of the Law; and is also subject to replacement housing obligations and the expeditious expenditure of housing funds. The Agency has not assisted in developing housing units nor have privately developed housing units resulted in the need for the Agency to provide replacement housing units. TIERRA WEST ADVISORS ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò NOVEMBER 2009PAGE 31 Ð¿¹» ìð ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) Policy Declaration Regarding Targeting of Monies from the Housing Fund according to Income Need. Pursuant to Section 33334.4 of the Law, Housing Fund monies are required to be spent over the ten year planning period of the Implementation Plan in at least the same proportion to the total number of housing units needed for very low and low income groups within the community, as determined for the City pursuant to Section 65584 of the Government Code. In accordance with Section 33490(a)(2)(A)(iii) of the Law, the first time period to implant the requirements for targeting of Housing Funds is on or before December 31, 2014, and each ten years thereafter. According to the Final Regional Housing Needs Allocation Plan (“RHNA”), for the planning period 2009, the housing for very low and low income households represents 63% percent of the City’s total housing need. The following table shows the proposed fair share allocation for different income groups identified by the San Luis Obispo Council of Governments (SLOCOG). Regional Housing Need Allocation Planning Period FY 2009/2010 - FY 2013/2014 Income LevelAllocation Targeting Very Low8440% Low5928% Moderate6732% Total210100% Source: SLOCOG RHNA, October 2008 As illustrated in the table above the Agency is required to spend 40% of its Housing Funds on very low income households, and 28% on low income households. As permitted under the Law, agencies are able to shift or reduce their income targeting requirement if other locally controlled funds are available for those targeted income groups. These additional funds, however, must not be used in combination with Housing Fund monies and long term affordability must be met, 45 years for owner occupied and 55 years for rental housing. Such locally controlled funds include CDBG, HOME and fees received by the city pursuant to inclusionary housing programs. TIERRA WEST ADVISORS ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò NOVEMBER 2009PAGE 32 Ð¿¹» ìï ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) In addition, the Agency is to spend a defined minimum of Housing Fund monies during this same period of time to assist persons regardless of age. This minimum is defined as those persons under the age of 65. Based on the May 2009 Housing Element Update, the City of Arroyo Grande age proportionality is identified in following table: Housing Funds Expenditures ge Proportionality Requirement A AgePopulationPercentage Less than 65 years12,62980% 65 years and over3,22220% Total15,851100% Source: 2000 U.S. Census The Agency will comply with these targeting requirements. Replacement Housing The Agency must replace any housing units that have been demolished or removed from the affordable housing stock as a result of a redevelopment project or program, the Agency must do so within four (4) years after the unit was removed from the market. The replacement housing obligation is triggered when units are destroyed or removed by a redevelopment project, which is subject to a written agreement with the Agency or where financial assistance has been provided by the Agency. Vacant units that could reasonably be expected to be occupied by low- or moderate-income households if occupied must be replaced within four (4) years of their removal and may be located anywhere within the territorial jurisdiction of the City. When dwelling units are destroyed or removed after January 1, 2002, Section 33413(a) of the Law requires that all the replacement units be available at affordable housing cost to the same household income level as the households that were displaced from the destroyed or removed units. Income limits for replacement units are equivalent to those for inclusionary units. Pursuant to Section 33413(f)(1)(2) of the Law the Agency may replace destroyed or removed dwellings with fewer units if the replacement units have a greater or equal number of bedrooms and are affordable to household of the same income level as the destroyed or removed units. The Agency, at this time, has not removed or destroyed any residential units in the Project Areas and has no plans to remove or destroy any units with in the next ten years. TIERRA WEST ADVISORS ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò NOVEMBER 2009PAGE 33 Ð¿¹» ìî ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) As a result, the Agency has no obligation to replace any housing units and should the Agency need to remove or destroy any units in the future, the Agency will follow all requirements to replace those units. Housing Production Requirements Redevelopment project areas adopted on or after January 1, 1976 and territory added to project areas by amendments adopted on or after January 1, 1976 must meet the affordable housing production requirements. As part of the Implementation Plan, agencies must adopt a plan showing how the Agency intends to meet its housing production requirement (Housing Production Plan). Affordable Housing Activities from 2004/05 through 2008/09 The Agency assisted with the following affordable housing activities to increase and preserve the community’s supply of affordable housing: $50,000 in Redevelopment Housing Assistance for the Family Care Network, Inc. foster care transitional housing project approved through an Affordable Housing Agreement. The Redevelopment Agency Board approved the amended Development and Disposition Agreement with the Courtland-Arroyo Grande, LP for the development of a 108-unit senior affordable housing project, 76 set for very low income units. The Agency’s assistance of $800,000 for this project resulted in theCortina D'Arroyo Grande Senior Apartments completed by META Housing in 2006. The Redevelopment Agency Board approved the Vacant Land Purchase Agreement on October 9, 2007 for $1.48 million with Affordable Housing funds to acquire a 2.5- acre property at the southwest corner of Courtland Street and East Grand Avenue for the development of 14 units set for low- and moderate-income households as part of the Touchstone Plaza Master Plan. On September 23, 2008 the Agency board approved an agreement for the Purchase of an affordable housing unit at 252 South Courtland Street. On December 9, 2008, the Agency Board approved an Agreement for the Purchase and Sale of 252 South Courtland Street to the Housing Authority of the City of San Luis Obispo to transfer to an income-qualified household at an affordable housing cost. Although the property is outside the Project Area boundaries, the Agency can count half a credit for the unit. TIERRA WEST ADVISORS ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò NOVEMBER 2009PAGE 34 Ð¿¹» ìí ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) Arroyo Grande Project Area: Production through the life of the Redevelopment Plan (though FY 2025) Prior to the time limit on the effectiveness of a redevelopment plan, at least 30 percent of the new or substantially rehabilitated housing developed by the Agency in the Arroyo Grande Project Area must be restricted for low- and moderate-income households, with 50 percent of the total restricted units reserved for very low-income households. Not less than 15 percent of the housing proceeds by public or private entities other than the Agency within the Arroyo Grande Project Area must be restricted for low and moderate-income households, with 40 percent of the total restricted units reserved for very low-income households. Redevelopment Inclusionary Housing Sample Project - Inclusionary Calculation Within ProjectOutside AreaProject Area Project Location Project Size in Units100100 Total Inclusionary Requirement30%15% Very Low Income Requirement50%40% 3015 Total Affordable Units at Low or Mod 6 15 Total Affordable at Very Low Prior to January 1, 2002, the units must be price restricted for the longest feasible time but not less than the period of time the land use controls of the redevelopment plan remain in effect. For owner occupied housing, current law provides a limited exception to this covenant requirement by allowing a non-qualifying sale of an affordable production unit provided that the Agency replaces the unit within three (3) years at the same income level as the original. After January 1, 2002, units must remain affordable for the longest feasible time, but no less than 55 years for rental units and 45 years for a homeownership unit. The Implementation Plan must include the following information regarding the Agency’s housing production obligations for the Arroyo Grande Project Area: The number of units of very low-, low- and moderate-income housing which have been developed within the project area which meet the production requirements; TIERRA WEST ADVISORS ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò NOVEMBER 2009PAGE 35 Ð¿¹» ìì ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) An estimate of the number of new, substantially rehabilitated, or price restricted residential units to be developed or purchased within the project areas, both over the life of the redevelopment plan and during the next ten years; An estimate of the number of units of very low- low-, and moderate-income housing required to be developed within project areas in order to meet the production requirements; An estimate of the number of Agency developed residential units which will be developed during the next five years; and An estimate of the number of Agency developed units for very low-, low-, and moderate-income households during the next five years. Law Restrictions on the Use of the Housing Fund As of January 1, 2002, there are additional restrictions on the use of monies from the Housing Fund. Redevelopment agencies are now required to spend Housing Funds in proportion to the community’s need as defined in the City’s Housing Element. The City of Arroyo Grande Housing Element, adopted by the City Council and certified by the State Department of Housing and Community in 2003, concluded that there was a need for 20 very low-income units, 15 low-income units, and 20 moderate-income units. The data presented in the following table indicates the percentage of funds from the Housing Fund to be spent with each income category over a 10-year time frame. Notwithstanding this requirement, funds required to be expended within a higher income category can be utilized for a lower income category. Regional Housing Need Allocations, SLOCOG October 2008 2000 Housing Element2008 RHNA (1) Allocation Allocation² Income LevelTargetingTargeting Very Low20241%8440% Low13227%5928% Moderate15532%6732% Total489100%210100% (1) SLOCOG RHNA for 2008 TIERRA WEST ADVISORS ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò NOVEMBER 2009PAGE 36 Ð¿¹» ìë ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) The SLOCOG has determined that for 2008, the City of Arroyo Grande will require 84 units for very low income households, and 126 for low and moderate income households. Agency Housing Activities/Use of Monies in the Housing Fund The Agency has met its housing goals and requirements through the following housing activities. Housing Fund Deposits during the Implementation Plan Period The Agency is projected to receive approximately $1.5 million in tax increment to be deposited in the Housing Fund over the next five years. The Agency will have approximately $3.3 million over the next five years to implement housing activities. The Agency intends to spend all of its available funds within the planning period. rroyo Grande Redevelopment Agenc Ay Projected Housing Fund Revenues FY 2009/10 - 2013/14 Expenditure of Expenditure of Expenditure of Housing Funds Housing Funds Housing Funds Program for Very Low-for Low-for Moderate-Total Funds Housing Funds Expenditures/Debt Administrative Income Income Income Available for Fiscal YearDepositsObligationsCostsHousingHousingHousingHousing Fund Balance FY 2008/09 $ 2,827,904$ 2,827,904 FY 2009/10$ 295,372$ (370,000)$ (52,575)$ 118,149$ 82,704$ 94,519$ 2,700,701 FY 2010/11$ 293,395$ (373,700)$ (53,101)$ 117,358$ 82,151$ 93,887$ (133,405) FY 2011/12$ 303,429$ (381,174)$ (54,163)$ 121,371$ 84,960$ 97,097$ (131,908) FY 2012/13$ 313,663$ (588,797)$ (55,246)$ 125,465$ 87,826$ 100,372$ (330,381) FY 2013/14$ 324,101$ (600,573)$ (56,351)$ 129,641$ 90,748$ 103,712$ (332,823) Subtotal$ 1,529,961 Total$ 4,062,492$ (1,713,671)$ (215,085)$ 611,984$ 428,389$ 489,587$ 1,899,387 Source: Agency 2008-09 Budget and Tierra West Advisors Tax Increment Revenue Projections Housing Production Plan: Housing Production Plan Obligations for the Arroyo Grande Project Area (1997-2025) The Agency does not have any current housing obligation since no new or substantially rehabilitated units were built within the Project Area since its adoption in 1985. TIERRA WEST ADVISORS ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò NOVEMBER 2009PAGE 37 Ð¿¹» ìê ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) Housing Production Obligations (FY2009/10-FY2024/25) The Arroyo Grande Project Area has potential for infill development sites, mixed use projects, and transit oriented development projects (TOD) near the 101 Freeway. Therefore, the Agency anticipates that over the life of the Arroyo Grande Project Area that there is potential for a significant number of new or substantial rehabilitated housing units to be produced; and therefore, the Agency will have ample opportunities to meet affordable housing obligations. The Agency intends to spend the Housing Fund monies on the creation and preservation of affordable housing for very-low, low and moderate income households as called for in the Housing Element and as part of the Regional Housing Needs Allocation. The Agency anticipates creating an additional 20 affordable housing units for very-low income households within the planning period to be located in the Arroyo Grande Project Area. The Project Areas currently has a deficit of 10 units at the very low-income level. Confirm numbers below in column 3 per Steve Adams. 104 units at the Courtland project which was senior housing completed some time ago. Steve was not sure of the date. Also, Steve mentioned that the Agency bought an existing project and put covenants on the project to make it affordable for four (4) very low units and one (1) moderate unit in 2005 for the Family Care Network. Arroyo Grande Redevelopment Agency Housing Production and Affordable Obligation Housing ProductionAffordable ObligationAffordable ProductionSurplus(Deficit) Substatial NewRehabiliationTotalVery LowLow/ModTotalVery LowLow/ModTotalVery LowLow/ModTotal Historical Production Prior to 20096012724.326.4810.8142236101625 Projected Production FY 2009/10 - 2012/13000000000000 FY 2009/10 - 2014/15808885.287.9213.2610160.722.082.8 FY 2014/15 - 2018/191200000000000 FY 2014/15 - 2030000000000000 Total Production152201609.614.424203252101828 Note: Affordable Obligation required by the San Luis Obispo County Council of Government in 2008 via the Regional Housing Needs Plan (RHNP) Note: Prior year production totals and projected production totals provided by the 2009 City of Arroyo Grandee Housing Element Plan for Affordable Housing TIERRA WEST ADVISORS ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò NOVEMBER 2009PAGE 38 Ð¿¹» ìé ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) The Arroyo Grande Community Redevelopment Agency, during the Implementation Plan planning period, will concentrate on activities that help the Agency meet its housing goals and objectives. The affordable housing activities planned to be undertaken by the Agency will advance and support the overall goals of the Housing Element as part of the City’s General Plan. The Housing Element sets forth the following goals: Protect existing stable, single family neighborhoods throughout the City. Encourage the development of a range of housing types in a range of prices affordable to all Arroyo Grande residents. Encourage the maintenance and upgrading of existing housing stock to ensure decent, safe and sanitary homes for all Arroyo Grande residents. Support federal and state laws that prohibit discrimination in housing on the basis of age, sex, religion or race. The Agency plans to spend its Housing Funds in proportion of the need for the specific income groups as required by Law. The Agency will continue to encourage the preservation and development of housing affordable to those income groups with the greatest need. The Agency will leverage its Housing Fund monies in order to maximize the number of affordable units produced and will partner with a non profit affordable housing developer to produce at least 20 units within the planning period for very low income households. Potential Activities the Agency will explore to meet its affordable housing obligations: (Please also see Chart 5) A proposed mixed use project is under consideration for the Courtland/Grand Avenue location. The project will include commercial uses at the front of the project site with a 100% affordable residential development at the back. The residential nonprofit housing development partner, Peoples Self Help Housing, is proposing approximately 36 units at the very low and low income affordability level featuring large square footage to accommodate families. The project approval is projected during fiscal year 2009/2010. Construction is expected to begin in fiscal year 2011/2012. The Agency expects a new mixed use development project to be under construction at East Branch in the next few years. The project, De Blauw, has already received approval from the City and is awaiting a more favorable economic climate. The Agency is working toward the redevelopment of a blighted former residential site at El Camino Real and Bennett. The project entails a land swap that will make another affordable housing project a reality. The project will create a new space for the VCA Animal Hospital expected in fiscal year 2009/2010. The lost residential unit TIERRA WEST ADVISORS ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò NOVEMBER 2009PAGE 39 Ð¿¹» ìè ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) will be replaced via the Peoples Self Help Housing project expected at the Courtland Grand project. The Agency is discussing the annexation of County property below Canyon Crest (Pearwood) that is outside of the project area. If annexed and acquired using set aside funds, the property will accommodate four lots and a drainage easement. The Agency/City is working on annexation and a tentative map in fiscal year 2009/2010. The ultimate goal of the project will be to prepare the site for development and sell or swap the site for a more suitable site within the project area for affordable housing. The land swap is projected in Fiscal Year 2010/2011. The Agency has approved housing assistance for a project by Transitions, a nonprofit organization that provides mental health support for the community. The project site is located just outside the project area. The project will be a five unit affordable studio apartment complex. The Agency is looking forward to the development of a mixed use project at Elm and Grand in fiscal year 2013/2014. An office and residential mixed use project is expected for the property at Oak Park and El Camino Real. The site is approximately 2 acres and is expected to get underway in fiscal year 2012/2013. Expenditures of Housing Funds, FY 2009/10- 2013/14 The Agency plans to set-aside $1.5 million in Housing Funds over the next five years. The Agency also intends to use the Housing Fund in proportion to the needs for each income category as set forth in the Housing Element. TIERRA WEST ADVISORS ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò NOVEMBER 2009PAGE 40 Ð¿¹» ìç ß¹»²¼¿ ×¬»³ çò½ò Ð¿¹» ëð ARROYO GRANDE REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN (2009-10 TO 2013-14) SECTION IV Administration of the Implementation Plan As detailed in the Introduction of this Plan, the Agency is required to produce an Implementation Plan every five years. After adoption of the each implementation plan, a new plan is to be adopted every five years either in conjunction with the Housing Element cycle or the implementation plan cycle. Implementation Plan Adoption Process Each Implementation Plan must be presented and adopted at a duly noticed public hearing of the Agency. Notice of the public hearing must be conducted pursuant to Section 33490 of the Law. The Notice must be published for three consecutive weeks pursuant to Section 6063 of the Government Code, mailed at least three weeks in advance to all persons and agencies that have requested notice, and posted in at least four permanent places within the Project Area for a period of three weeks. Publication, mailing, and posting shall be completed not less than 10 days prior to the date set for hearing. The Agency may amend the implementation plan at any time after conducting a public hearing on the proposed amendment. Mid-Term Implementation Plan Review Process At least once within the five-year term of this Implementation Plan, the Agency must conduct a public hearing and hear testimony of all interested parties for the purpose of reviewing the redevelopment plan and the corresponding implementation for each redevelopment project. This hearing must take place no earlier than two years and no later than three years after the adoption of the Implementation Plan. The Mid- Term review of this Implementation Plan is tentatively set for 2011. TIERRA WEST ADVISORS ARROYO GRANDE REDEVELOPMENT AGENCY ß¹»²¼¿ ×¬»³ çò½ò NOVEMBER 2009PAGE 42 Ð¿¹» ëï THIS PAGE INTENTIONALLY LEFT BLANK ß¹»²¼¿ ×¬»³ çò½ò Ð¿¹» ëî ß¹»²¼¿ ×¬»³ ïïò¿ò Ð¿¹» ï ß¹»²¼¿ ×¬»³ ïïò¿ò Ð¿¹» î ß¹»²¼¿ ×¬»³ ïïò¿ò Ð¿¹» í ß¹»²¼¿ ×¬»³ ïïò¿ò Ð¿¹» ì ß¹»²¼¿ ×¬»³ ïïò¿ò Ð¿¹» ë ß¹»²¼¿ ×¬»³ ïïò¿ò Ð¿¹» ê ß¹»²¼¿ ×¬»³ ïïò¿ò Ð¿¹» é ß¹»²¼¿ ×¬»³ ïïò¿ò Ð¿¹» è ß¹»²¼¿ ×¬»³ ïïò¿ò Ð¿¹» ç ß¹»²¼¿ ×¬»³ ïïò¿ò Ð¿¹» ïð ß¹»²¼¿ ×¬»³ ïïò¿ò Ð¿¹» ïï THIS PAGE INTENTIONALLY LEFT BLANK ß¹»²¼¿ ×¬»³ ïïò¿ò Ð¿¹» ïî ß¹»²¼¿ ×¬»³ ïïò¾ò Ð¿¹» ï ß¹»²¼¿ ×¬»³ ïïò¾ò Ð¿¹» î ß¹»²¼¿ ×¬»³ ïïò¾ò Ð¿¹» í ß¹»²¼¿ ×¬»³ ïïò¾ò Ð¿¹» ì ß¹»²¼¿ ×¬»³ ïïò¾ò Ð¿¹» ë ß¹»²¼¿ ×¬»³ ïïò¾ò Ð¿¹» ê ß¹»²¼¿ ×¬»³ ïïò¾ò Ð¿¹» é ß¹»²¼¿ ×¬»³ ïïò¾ò Ð¿¹» è ß¹»²¼¿ ×¬»³ ïïò¾ò Ð¿¹» ç ß¹»²¼¿ ×¬»³ ïïò¾ò Ð¿¹» ïð ß¹»²¼¿ ×¬»³ ïïò¾ò Ð¿¹» ïï ß¹»²¼¿ ×¬»³ ïïò¾ò Ð¿¹» ïî ß¹»²¼¿ ×¬»³ ïïò¾ò Ð¿¹» ïí ß¹»²¼¿ ×¬»³ ïïò¾ò Ð¿¹» ïì ß¹»²¼¿ ×¬»³ ïïò¾ò Ð¿¹» ïë ß¹»²¼¿ ×¬»³ ïïò¾ò Ð¿¹» ïê ß¹»²¼¿ ×¬»³ ïïò½ò Ð¿¹» ï ß¹»²¼¿ ×¬»³ ïïò½ò Ð¿¹» î ß¹»²¼¿ ×¬»³ ïïò½ò Ð¿¹» í ß¹»²¼¿ ×¬»³ ïïò½ò Ð¿¹» ì ß¹»²¼¿ ×¬»³ ïïò½ò Ð¿¹» ë ß¹»²¼¿ ×¬»³ ïïò½ò Ð¿¹» ê ß¹»²¼¿ ×¬»³ ïïò½ò Ð¿¹» é ß¹»²¼¿ ×¬»³ ïïò½ò Ð¿¹» è ß¹»²¼¿ ×¬»³ ïïò½ò Ð¿¹» ç ß¹»²¼¿ ×¬»³ ïïò½ò Ð¿¹» ïð ß¹»²¼¿ ×¬»³ ïïò½ò Ð¿¹» ïï ß¹»²¼¿ ×¬»³ ïïò½ò Ð¿¹» ïî ß¹»²¼¿ ×¬»³ ïïò½ò Ð¿¹» ïí ß¹»²¼¿ ×¬»³ ïïò½ò Ð¿¹» ïì ß¹»²¼¿ ×¬»³ ïïò½ò Ð¿¹» ïë ß¹»²¼¿ ×¬»³ ïïò½ò Ð¿¹» ïê O� pRRO YO INCORPORATED Z ig JU 10, 1811 P 94 /F ORS \ MEMORANDUM TO: CITY COUNCIL 2 FROM: STEVEN ANNIBALI, CHIEF OF POLICE(J SUBJECT: SUPPLEMENTAL INFORMATION AGENDA ITEM 11.c. — NOVEMBER 24, 2009 CITY COUNCIL MEETING Consideration of a Proposed Ordinance Repealing and Replacing Chapter 5.56 of the Arroyo Grande Municipal Code in its Entirety Regarding Massage Establishments DATE: NOVEMBER 24, 2009 Attached is a modified Ordinance for your consideration which includes a revised Section 5.56.080(F) as follows: F. The business or establishment shall comply all applicable State codes as established in the California Code of Regulations and adopted by the City including, but not limited to, a system of adequate ventilation, a supply of hot and cold running water, a supply of potable drinking water, hand washing facilities and public toilet rooms. Staff recommends the Council introduce the Ordinance as modified. ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE REPEALING AND REPLACING CHAPTER 5.56 OF THE ARROYO GRANDE MUNICIPAL CODE IN ITS ENTIRETY REGARDING MASSAGE ESTABLISHMENTS WHEREAS, the City Council of the City of Arroyo Grande desires to provide for the orderly regulation of persons and establishments engaged in the practice of massage therapy, as defined in this Ordinance; and WHEREAS, the City Council of the City of Arroyo Grande desires to both recognize the practice of massage therapy as a valid professional field and discourage the use of massage therapy as a subterfuge by persons with criminal tendencies to commit unlawful activity; and WHEREAS, the City Council of the City of Arroyo Grande recognizes that the creation of the California Massage Therapy Council (CAMTC) was intended to serve the interests of the general public and the massage therapy profession by making the process of certification consistent throughout the State; and WHEREAS, the City Council of the City of Arroyo Grande recognizes that statewide CAMTC certification will streamline and standardize massage therapist registration procedures, assist local governments keeping track of whether a massage therapist is licensed or certified elsewhere in the State, and increase transparency for the public regarding the meaning of "certified" related to massage therapy NOW, THEREFORE BE IT ORDAINED by the City Council of the City of Arroyo Grande as follows: SECTION 1. Arroyo Grande Municipal Code Chapter 5.56 is hereby repealed and replaced in its entirety as set forth in Exhibit A, attached hereto and incorporated herein by this reference. SECTION 2. If any section, subsection, subdivision, paragraph, sentence, or clause of this Ordinance or any part thereof is for any reason held to be unlawful, such decision shall not affect the validity of the remaining portion of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, or clause thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, or clause be declared unconstitutional. SECTION 3. A summary of this Ordinance shall be published in a newspaper published and circulated in the City of Arroyo Grande at least five (5) days prior to the City Council meeting at which the proposed Ordinance is to be adopted. A certified copy of the full text of the proposed Ordinance shall be posted in the office of the City Clerk. Within fifteen (15) days after adoption of the Ordinance, the summary with the names of those City Council Members voting for and against the Ordinance shall be published again, and the City Clerk shall post a certified copy of the full text of such adopted Ordinance. ORDINANCE NO. PAGE 2 SECTION 4. This Ordinance shall take effect thirty (30) days after its adoption. On motion by Council Member , seconded by Council Member , and by the following roll call vote to wit: AYES: NOES: ABSENT: the foregoing Ordinance was adopted this day of , 2009. ORDINANCE 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 ORDINANCE NO. PAGE 4 EXHIBIT A CHAPTER 5.56 MASSAGE THERAPY REGULATIONS Sections: 5.56.010 Massage therapy license required 5.56.020 Definitions. 5.56.030 Exemptions from chapter. 5.56.040 Registration and notification requirements. 5.56.050 Hours of operation. 5.56.060 Prohibited advertising practices. 5.56.070 Minors. 5.56.080 Physical facility and building code requirements. 5.56.090 Health and safety requirements. 5.56.100 Attire and physical hygiene requirements. 5.56.110 Inspection by government officials. 5.56.120 Owner and operator responsibility — Denial, revocation, restriction or suspension of business license. 5.56.130 Remedies cumulative — Each day a separate offense. 5.56.140 Public nuisance. 5.56.150 Criminal penalties. 5.56.160 Civil injunction. 5.56.010 Massage therapy license required — Deadline for compliance. Except where a specific exemption is applicable pursuant to Section 5.56.030, it is a violation of this chapter for: A. Any person to engage in the practice of massage therapy, and any massage business or establishment to employ or retain such a person, unless such person first obtains and continues to maintain in full force and effect a valid CAMTC certificate. B. Notwithstanding subsection A of this section, valid massage permits for the year 2009 that would otherwise have expired on December 31, 2009 that were issued by the City pursuant to the prior chapter of this Code regulating Massage Establishments, shall be deemed valid and shall be extended for a period of sixty (60) days from the effective date of this chapter. Holders of such City issued massage permits shall be permitted to continue to practice pursuant to the City issued permit, and subject to the provisions of this chapter, provided that he or she files for and diligently pursues obtaining a CAMTC certificate. The Police Chief or his /her designee may extend the period of time that a City massage permit is valid if it is deemed reasonably necessary to allow a permittee additional time to secure a CAMTC certificate. ORDINANCE NO. PAGE 5 5.56.020 Definitions. A. "CAMTC Certificate" shall mean the certificate issued by the massage therapy organization to massage therapists pursuant to subdivision (c) of Section 4601 of the California Business and Professions Code, and to massage practitioners pursuant to subdivision (b) of Section 4601 of the California Business and Professions Code or subdivision (a) or (c) of Section 4604 of the California Business and Professions Code. B. "City" shall mean the City of Arroyo Grande. C. "Compensation" shall mean the payment, loan, advance, donation, contribution, deposit, exchange, or gift of money or anything of value. D. "Employed or Retained By" shall include: 1. Any person who is a directly paid employee of a massage business or establishment; 2. Any person whose association with a massage business or establishment is that of an independent contractor who receives compensation for massage therapy provided to patrons of the business or establishment; and 3. Any person who receives a referral of patrons from a massage business or establishment and who at any time before or after the referral arranges in any way for compensation to flow to the massage business or establishment or any of its owners (regardless of whether the parties involved acknowledge that compensation is flowing in exchange for the referral, or such parties record such compensation in their financial records). E. "License" or "Permit" shall mean the authorization issued by the City allowing the practice of massage therapy. Also known as a massage permit. F. "Licensee" shall mean a person to whom a massage permit has been issued. G. "Massage, Massage Therapy, and Bodywork" are used in this chapter interchangeably and shall mean the application of various techniques to the muscular structure and soft tissues of the human body, including, but not limited to, any method of pressure or friction against, or stroking, kneading, rubbing, tapping, compression, pounding, vibrating, rocking or stimulating of the external surfaces of the body with hands or with any object or appliance. The terms "massage," "massage therapy," and "bodywork" specifically exclude the diagnosis, prescription, intentional manipulation or adjustments of the skeletal structure, or any other service, procedure or therapy which requires a license to practice (e.g., chiropractic, osteopathy, orthopedics, physical therapy, podiatry, or medicine), hypnosis, naturopathic, colonic irrigation, acupuncture, vacuum cupping, nutritional or dietary counseling, detoxification programs, yoga, exercise, spiritual healing, or procedures which penetrate body cavities, either manually or with any other method of intrusion. H. "Massage Business or Establishment" shall mean any business or establishment which offers massage therapy in exchange for compensation, whether at a fixed place of business or at a location designated by the patron. Any business or establishment which offers any combination of massage therapy and bath facilities, including, but not limited to, showers, baths, wet and dry heat rooms, pools and hot tubs, shall be deemed a massage business or establishment under this chapter. ORDINANCE NO. PAGE 6 I. "Massage Practitioner" shall mean any person to whom a CAMTC certificate has been issued pursuant to subdivision (b) of Section 4601 of the California Business and Professions Code, or subdivision (a) or (c) of Section 4604 of the California Business and Professions Code, and who is engaged in the practice of massage therapy for compensation. As used in this chapter, the terms "bodywork practitioner" or "massage and bodywork practitioner" shall have the same meaning as "massage practitioner." J. "Massage Therapist" shall mean any person to whom a CAMTC certificate has been issued pursuant to subdivision (c) of Section 4601 of the California Business and Professions Code and who is engaged in the practice of massage therapy for compensation. As used in this chapter, the terms "bodyworker," "bodywork therapist," or "massage and bodywork therapist" shall have the same meaning as "massage therapist." K. "Operator" shall mean any person who supervises, manages, directs, organizes, controls or in any other way is responsible for or in charge of the overall operation, conduct or activities of a massage business or establishment. L. "Owner" shall mean any of the following persons: 1. The sole proprietor of a massage business or establishment. As used in this chapter, the term "sole proprietor" shall mean a massage business or establishment where the owner is the only person employed by that business or establishment to provide massage therapy; 2. Any general partner of a partnership that owns and operates a massage business or establishment; or 3. Any person who has a 20 percent or greater ownership interest in a corporation that owns and operates a massage business or establishment. M. "Person" shall mean any individual, proprietorship, partnership, corporation, firm, association, joint stock company, or combination of the above in whatever form or character. N. "Police Chief" shall mean the Police Chief of the City of Arroyo Grande or his or her authorized representative(s). 5.56.030 Exemptions from chapter. This chapter shall not apply to: A. Persons holding a valid certificate to practice the healing arts under the laws of the State of California and their employees, including, but not limited to, holders of medical degrees such as physicians, surgeons, chiropractors, osteopaths, naturopaths, podiatrists, acupuncturists, physical therapists, registered nurses and licensed vocational nurses; B. State - licensed hospitals, nursing homes, sanitariums, physiotherapy establishments, or other state - licensed physical or mental health facilities and their employees; C. Recognized schools of massage and their students in training, provided such students provide massage therapy only under the direct personal supervision of an instructor; ORDINANCE NO. PAGE 7 D. Barbers and cosmetologists who are licensed under the laws of the State of California while providing massage therapy within the scope of their licenses; provided, that such massage therapy is limited solely to the neck, face, scalp, feet and lower limbs up to the knees, and hands and arms, of their patrons; E. Persons who provide massage therapy to amateur, semi - professional or professional athletes or athletic teams, facilities or events, so long as such persons do not practice massage therapy as their primary occupation within City limits; F. Persons who hold a valid CAMTC certificate who are practicing consistent with the qualifications established by such certificate and whose practice, as such, may not be regulated by the City other than the requirement for possession of a business license; and G. Massage businesses or establishments as defined under paragraph (1) of subdivision (b) of Section 4612 of the California Business and Professions Code, except that such businesses or establishments shall not be exempt from this chapter to the extent Section 4612 expressly permits the regulation of such businesses or establishments by local ordinance. 5.56.040 Registration and notification requirements. A. Every nonexempt massage business or establishment and every massage business or establishment as defined under paragraph (1) of subdivision (b) of Section 4612 of the California Business and Professions Code, shall: 1. Provide the Police Department with a copy or other evidence of the massage therapy license or CAMTC certificate of every person who is employed or retained by the business or establishment to provide massage therapy, within 30 calendar days of the commencement of such person's period of employment; 2. Maintain on its premises a copy or other evidence of each such massage therapy license or CAMTC certificate for review by the Police Department; and 3. Notify the Police Chief of any intention to rename, change management, or convey the business or establishment to another person. B. Every licensee shall notify the Police Chief of a change in the licensee's home address, and the address of the massage business or establishment where the licensee is regularly employed or retained to provide massage therapy, within 30 days of such change. 5.56.050 Hours of operation. No licensee, whether such license is issued through the CAMTC certification process or the City application process, and no nonexempt massage business or establishment, or massage business or establishment described in paragraph (1) of subdivision (b) of Section 4612 of the California Business and Professions Code, shall provide massage therapy to the public for compensation between the hours of ten p.m. and seven a.m. of the following day. ORDINANCE NO. PAGE 8 5.56.060 Prohibited advertising practices. A. It is a violation of this chapter for any person who does not possess a valid CAMTC certificate or a valid City massage permit, and for any massage business or establishment that employs or retains such a person, to: 1. State or advertise or put out any sign or card or other device, or to represent to the public through any print or electronic media, that such person is certified, registered or licensed by a governmental agency as a massage therapist or massage practitioner; or 2. Hold oneself out or use the title of "certified massage therapist," "certified massage practitioner," or any other term, such as 'licensed," "registered," or "GMT," that implies or suggests that such person is the holder of a CAMTC certificate. B. It is a violation of this chapter for any massage business or establishment, licensee, or any other person providing massage therapy to the public for compensation, to advertise through any print or electronic media that is classified for adults only or similar classification. 5.56.070 Minors. It shall be unlawful for any nonexempt massage business or establishment, and for any massage business or establishment described in paragraph (1) of subdivision (b) of Section 4612 of the California Business and Professions Code, to: A. Employ or retain any person who is under the age of 18 years to provide any massage therapy to the public for compensation; or B. Provide massage therapy to any person who is under the age of 18 years, except at the special instance and request of a parent or other person in lawful custody of the minor. 5.56.080 Physical facility and building code requirements. The following physical facility and building code requirements shall be applicable to all nonexempt massage businesses or establishments, and to all massage businesses or establishments described in paragraph (1) of subdivision (b) of Section 4612 of the California Business and Professions Code: A. Except when there is no staff available to assure security for massage therapy patrons and staff who are behind closed doors, no massage therapy may be carried on behind locked closed doors. B. All doors to dressing rooms, toilet rooms and massage therapy rooms or cubicles shall open inward and shall be self - closing. Draw drapes, curtain enclosures, or accordion - pleated closures in lieu of doors are acceptable on all inner dressing rooms and massage therapy rooms or cubicles. C. Minimum lighting equivalent to at least one 40 -watt light shall be provided in each massage therapy room or cubicle. ORDINANCE NO. PAGE 9 D. A massage table shall be used for all massage therapy, with the exception of "Thai," "Shiatsu," and similar forms of massage therapy, which may be provided on a padded mat on the floor, provided the patron is fully attired in loose clothing, pajamas, scrubs or similar style of garment. The tables should have a minimum height of 18 inches. Beds, floor mattresses and waterbeds are not permitted on the premises of the business or establishment. E. All locker facilities that are provided for the use of patrons shall be fully secured for the protection of the patron's valuables, and the patron shall be given control of the key or other means of access. F. The business or establishment shall comply all applicable State codes as established in the California Code of Regulations and adopted by the City including, but not limited to, a system of adequate ventilation, a supply of hot and cold running water, a supply of potable drinking water, hand washing facilities and public toilet rooms. 5.56.090 Health and safety requirements. The following health and safety requirements shall be applicable to all nonexempt massage businesses or establishments, and to all massage businesses or establishments described in paragraph (1) of subdivision (b) of Section 4612 of the California Business and Professions Code: A. The business or establishment shall at all times be equipped with an adequate supply of clean sanitary towels, coverings and linens, and all massage tables shall be covered with a clean sheet or other clean covering for each patron. After a towel, covering or linen has once been used it shall be deposited in a closed receptacle and riot used until properly laundered and sanitized. Towels, coverings and linens shall be laundered either by regular commercial laundering or by a noncommercial laundering process which includes immersion in water at least 140 degrees Fahrenheit for not less than 15 minutes during the washing or rinsing operation. Clean towels, coverings and linens shall be stored in closed, clean cabinets when not in use. B. All massage therapy rooms or cubicles, wet and dry heat rooms, toilet rooms, shower compartments, and hot tubs and pools shall be thoroughly cleaned and disinfected as needed, and at least once each business day the premises are open and such facilities are in use. All bathtubs shall be thoroughly cleaned and disinfected after each use. C. All liquids, creams, or other preparations used on or made available to patrons shall be kept in clean and closed containers. Powders may be kept in clean shakers. All bottles and containers shall be distinctly and correctly labeled to disclose their contents. When only a portion of a liquid, cream or other preparation is to be used on or made available to a patron, it shall be removed from the container in such a way as not to contaminate the remaining portion. ORDINANCE NO. PAGE 10 D. No invasive procedures shall be performed on any patron. Invasive procedures include, but are not limited to: (1) application of electricity which contracts the muscle; (2) application of topical lotions, creams, or other substances which affect living tissue, such as chemical peel preparations or bleaches; (3) penetration of the skin by metal needles; (4) abrasion of the skin below the nonliving, epidermal layers; (5) removal of skin by means of any razor -edged instrument or other device or tool; and (6) any needle -like instrument which is used for the purpose of extracting skin blemishes and other similar procedures. E. All bathrobes, bathing suits and /or other garments that are provided for the use of patrons shall be either fully disposable and shall not be used by more than one patron, or shall be laundered after each use pursuant to subsection A of this section. F. All combs, brushes, and /or other personal items of grooming or hygiene that are provided for the use of patrons shall be either fully disposable and shall not be used by more than one patron, or shall be fully disinfected after each use. G. No patrons shall be allowed to use any shower facilities of the business or establishment unless such patrons are wearing slip- resistant sandals or flip -flops while in the shower compartment. All footwear such as sandals or flip -flops that are provided for the use of patrons shall be either fully disposable and shall not be used by more than one patron, or shall be fully disinfected after each use. H. The patron's genitals, pubic area, anus, and female patron's breasts below a point immediately above the top of the areola must be fully draped at all times while any employee of the business or establishment is in the massage therapy room or cubicle with the patron. No massage therapy shall be provided to a patron that results in intentional contact, or occasional and repetitive contact, with the genitals, anus, or areola of a patron. 5.56.100 Attire and physical hygiene requirements. The following attire and physical hygiene requirements shall be applicable to all licensees, and to all massage therapists and massage practitioners who are employed or retained by a nonexempt massage business or establishment, or by a massage business or establishment described in paragraph (1) of subdivision (b) of Section 4612 of the California Business and Professions Code: A. All persons shall be clean and wear clean and sanitary outer garments at all times. All outer garments shall be of a fully opaque, nontransparent material and provide complete covering from at least the mid -thigh to two inches below the collarbone. The midriff may not be exposed. B. All persons shall thoroughly wash their hands with soap and water or any equally effective cleansing agent immediately before providing massage therapy to a patron. No massage therapy shall be provided upon a surface of the skin or scalp of a patron where such skin is inflamed, broken (e.g., abraded, cut) or where a skin infection or eruption is present. ORDINANCE NO. PAGE 11 C. No person afflicted with an infection or parasitic infestation capable of being transmitted to a patron shall knowingly provide massage therapy to a patron, or remain on the premises of a massage business or establishment while so infected or infested. Infections or parasitic infestations capable of being transmitted to a patron include, but are not limited to: (1) cold, influenza or other respiratory illness accompanied by a fever, until 24 hours after resolution of the fever; (2) streptococcal pharyngitis ( "strep throat "), until 24 hours after treatment has been initiated and 24 hours after resolution of fever; (3) purulent conjunctivitis ( "pink eye "), until examined by a physician and approved for return to work; (4) pertussis ( "whooping cough "), until five days of antibiotic therapy has been completed; (5) varicella ("chicken pox "), until the sixth day after onset of rash or sooner if all lesions have dried and crusted; (6) mumps, until nine days after onset of parotid gland swelling; (7) tuberculosis, until a physician or local health department authority states that the person is noninfectious; (8) impetigo (bacterial skin infection), until 24 hours after treatment has begun; (9) pediculosis (head lice), until the morning after first treatment; and (10) scabies ('crabs "), until after treatment has been completed. Blood -borne diseases, such as HIV /AIDS and hepatitis B (HBV), shall not be considered infectious or communicable diseases for the purpose of this subsection. 5.56.110 Inspection by government officials. A. All nonexempt massage businesses or establishments, and all massage businesses or establishments described in paragraph (1) of subdivision (b) of Section 4612, shall permit representatives of the San Luis Obispo County Health Department, the Arroyo Grande Police Department, the Arroyo Grande Fire Department, the Arroyo Grande Community Development Department, and /or other City or County departments or agencies, to conduct a reasonable inspection of the public areas of, and areas otherwise open to plain view on or within the premises, to the extent allowed by law and during the regular business hours of the business or establishment, for the purpose of ensuring compliance with state and local law, including, but not limited to, Chapter 10.5 (commencing with Section 4600) of the California Business and Professions Code, the requirements of this chapter, or other applicable fire and health and safety requirements. B. Nothing in this section shall be deemed to prohibit the above - described government officials from pursuing any and all available legal remedies to secure entry into and inspection of the premises of the business or establishment if such entry is refused, or for any other reason allowed by law. C. It is a violation of this chapter for the business or establishment to prohibit or interfere with such lawful inspection of the premises at any time it is open for business. 5.56.120 Owner and operator responsibility — Denial, revocation, restriction or suspension of business license. The following provisions shall apply to all nonexempt massage businesses or establishments, and all massage businesses or establishments described in paragraph (1) of subdivision (b) of Section 4612 of the California Business and Professions Code: ORDINANCE NO. PAGE 12 A. For the purpose of enforcement of the requirements of this chapter, all owners and operators of the business or establishment shall be responsible for the conduct of all of its employees, agents, independent contractors or other representatives, while on the premises of the business or establishment or providing massage therapy. B. Notwithstanding Section 5.02.010, the City may: 1. Require the business or establishment in its application for a business license, or for the renewal of a business license, to provide information relevant to the activities of the business or establishment regulated by this chapter; 2. Make reasonable investigations into the information so provided; 3. Charge a business licensing fee sufficient to cover the costs of the business licensing activities regulated by this chapter; and 4. Deny, revoke, restrict or suspend a business license for either of the following causes: (a) an employee, agent, independent contractor or other representative of the business or establishment has committed a violation of this chapter, or of Chapter 10.5 (commencing with Section 4600) of Division 2 of the California Business or Professions Code; or (b) the business or establishment has provided materially false information in its application for a business license. 5.56.130 Remedies cumulative — Each day a separate offense. Any person subject to this chapter who personally, or through an agent, employee, independent contractor or other representative, violates any provision of this chapter shall be guilty of a separate offense for each and every day during any portion of which any such violation is committed, continued or permitted by such person. All remedies provided herein shall be cumulative and not exclusive. 5.56.140 Public nuisance. Any use or condition caused or permitted to exist in violation of any of the provisions of this chapter shall be and is hereby declared a public nuisance and, as such, may be abated or enjoined from further operation. 5.56.150 Criminal penalties. Any person subject to this chapter who personally, or through an agent, employee, independent contractor or other representative, violates any provision of this chapter commits a misdemeanor. Any person convicted of a misdemeanor shall be subject to punishment by fine and /or imprisonment to the maximum extent permitted by state law. 5.56.160 Civil injunction. The violation of any provision of this chapter shall be and is hereby declared to be contrary to the public interest and shall, at the discretion of the City, create a cause for injunctive relief.