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Minutes 2006-04-11 MINUTES REGULAR MEETING OF THE CITY COUNCIL TUESDAY, APRIL 11, 2006 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. CALL TO ORDER Mayor Ferrara called the Regular City Council meeting to order at 7:00 p.m. 2. ROLL CALL City Council: Council Members Jim Dickens, Joe Costello, Ed Arnold, Mayor Pro Tem Jim Guthrie and Mayor Tony Ferrara were present. City Staff Present: City Manager Steve Adams, City Attorney Tim Carmel, Director of Administrative Services/City Clerk Kelly Wetmore, Director of Public Works/City Engineer Don Spagnolo, Director of Financial Services Angela Kraetsch, Director of Community Development Strong, and Associate Planner Kelly Heffernon. 3. FLAG SALUTE Members of Girl Scout Troop 1016 led the Flag Salute. 4. INVOCATION Mayor Ferrara delivered the invocation. 5. SPECIAL PRESENTATIONS 5.a. Honorary Proclamation Declaring April 2006 as "Month ofthe Child". Mayor Ferrara presented an Honorary Proclamation declaring April 2006 as "Month of the Child". Jessica Morris, representing United Methodist Children's Center, accepted the Proclamation, spoke about Month of the Child, and distributed pins and posters to the Council. 5.b. Presentation Regarding San Luis Obispo County Air Pollution Control District's Climate Protection Program by Larry Allen, Air Pollution Control Officer. Larry Allen, Air Pollution Control Officer, gave a PowerPoint presentation (on file in the Administrative Services Department) on the District's Climate Protection Program. At the conclusion of the presentation, Mr. Allen noted that local governments are being encouraged to endorse the U.S. Mayors Climate Protection Agreement. 6. AGENDA REVIEW 6.a. Ordinances Read in Title Only. Council Member Arnold, Council Member Dickens 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 None. Minutes: City Council Meeting Tuesday, April 11, 2006 Page 2 8. CONSENT AGENDA Council Member Arnold moved, and Mayor Pro Tern Guthrie seconded the motion to approve Consent Agenda Items 8.a. through 8.c., with the recommended courses of action. The motion carried on the following roll-call vote: AYES: NOES: ABSENT: Arnold, Guthrie, Dickens, Costello, Ferrara None None 8.a. Cash Disbursement Ratification. Action: Ratified the listing of cash disbursements for the period March 16,2006 through March 31, 2006. 8.b. Consideration of Resolution Amending the Annual Business License Fee Schedule. Action: Adopted Resolution No. 3910 amending the annual business license fee schedule. 8.c. Consideration to approve Final Tract Map 2709 Subdividing 1.12 Acres Into Eleven (11) Residential Parcels and One (1) Common Area Parcel Located at the Northeast Corner of Maple Street and South Elm Street! Action: Approved Final Tract Map 2709, subdividing 1.12 acres into eleven (11) residential parcels and one (1) common parcel. 9. PUBLIC HEARINGS 9.a. Consideration of Request from South County Sanitary, Inc. for Integrated Solid Waste Collection Rate Increase. City Manager Adams presented the staff report and recommended the Council adopt a Resolution approving an integrated solid waste collection rate increase of 3.76%. Mayor Ferrara opened the public hearing and invited comments from those in the audience who wished to be heard on the matter. No public comments were received and the Mayor closed the public hearing. Council comments included acknowledgement of the terms of the existing Franchise Agreement; that the request was within the scope, terms and conditions of the Franchise Agreement; and that it was appropriate to review and adjust the rates on an annual basis. Mayor Pro Tern Guthrie moved to adopt a Resolution as follows, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ESTABLISHING INTEGRATED SOLID WASTE COLLECTION SERVICE RATES". Council Member Dickens seconded the motion, and the motion carried on the following roll-call vote: AYES: NOES: ABSENT: Guthrie, Dickens, Costello, Arnold, Ferrara None None Minutes: City Council Meeting Tuesday, April 11, 2006 Page 3 9.b. Consideration of Amended Conditional Use Permit Case No. 06-001 and Administrative Sign Permit 06-007 to Allow a Financial Institution to Occupy Building "J" of the Five Cities Shopping Center; 911 Rancho Parkway; Levon Investments, LLC. Associate Planner Heffernon presented the staff report and recommended the Council adopt a Resolution approving Amended Conditional Use Permit Case No. 06-007. Staff responded to questions from Council regarding conditions of approval related to the timeframe for installing Phase 2 traffic improvements; clarification regarding the method of requiring a letter of credit to be posted by the applicant for the proposed traffic improvements; whether the estimated construction costs for the traffic improvements had been adequately determined; whether or not the City could install the traffic improvements on private property if the applicant did not install the traffic improvements within the required timeframe; and clarification regarding the traffic improvement alternatives. Mayor Ferrara opened the public hearing and invited comments from those in the audience who wished to be heard on the matter. Carol Florence, Principal Planner from Oasis Associates, representing the applicant, requested the Council to approve the Amended Conditional Use Permit to allow a financial institution to occupy a portion of Building J based upon findings and conditions shown in Exhibit A of the Resolution, with a minor modification to Special Condition #7. She reiterated that it was the applicant that offered to be conditioned to design and provide financial assurance; however, the property owner did not include a trigger time and would prefer to delete the three-year implementation date and revise the last sentence of the Condition to read "Phase 2 traffic improvements shall be completed prior to Certificates of Occupancy for Pad I". Displaying renderings, she reviewed the layout of Phase 2, including the proposed financial institution, proposed signage, elevation, and site plan with site improvements. She reflected on the process that the applicant started in 2004 to keep the Council informed and involved in decisions that surround the Center. She stated that since the presentation to Council in January, they have been trying to determine the process to implement the traffic improvements without waiting to formally submit an application for Pad I. She noted that the applicant had, in good faith and at considerable expense, prepared a comprehensive traffic improvement plan which would be required as mitigation and conditioned as part of the Pad I project. She requested that the traffic improvement plan be tied to the occupancy of Pad I and ensured that the applicant would be providing up to $750,000 as financial assurance that the improvements would be installed and have no intention of having the City act on the letter of credit. Ms. Florence then responded to questions from Council. Significant discussion ensued regarding timing of the design, permitting, and construction of traffic improvements as it relates to this proposal as well as to future proposals for the development of Pad I. Ruth Jessup, Via Bandolero, stated that this hearing was supposed to be regarding the bank and agreed that the empty building should be put to use. She stated that the adjacent neighbors were not supportive of developing the remainder of the property without their input and approval. She spoke in opposition to the proposed PetCo project as it relates to allowing animals in and around the store, due to its proximity to the nearby restaurant, ice cream parlor, and grocery store. She expressed concem that the Council was discussing and considering an item that was not on the Agenda. Hearing no further public comments, Mayor Ferrara closed the public hearing. Minutes: City Council Meeting Tuesday, April 11, 2006 Page 4 Council Member Arnold provided the following comments: - Referred back to the minutes of the March 8, 2005 City Council meeting which noted that he could not support the proposed mitigation for Wells Fargo and commented that there needed to be a comprehensive plan to address the traffic issues surrounding the Center. Additionally, he said the Mayor noted that if the owner of the Center wanted to act in good faith, they would take a look at the comprehensive behavior of the traffic circulation in the shopping center now and try to improve the circulation behavior to make it more effective; Expressed concern that the City would not get the traffic improvements if Pad I was not done within the timeframe; Stated he could support the project if there is a two-year time limit, not three, for installation of traffic improvements; Noted that the proposed traffic improvement plan may not address all the existing traffic problems and more improvements may be needed later when Pad I is reviewed and considered, such as a traffic signal; Suggested a requirement of an access agreement if the City has to act on the letter of credit in order to complete the circulation improvements on private property; Noted that previous consideration of the Wells Fargo application included a right turn lane as a traffic improvement; Stated that he supported a comprehensive solution for traffic improvements now. Council Member Costello provided the following comments: - Also referred back to the minutes of the March 8, 2005 City Council meeting which noted he agreed that by putting in a right turn lane at the Phase 1 driveway on Rancho Parkway, there would be an improved level of service; however, any improvements approved for this amended Conditional Use Permit would have to fit with whatever the long-term solutions for the Center are going to be and he could not support the project at this time. Assured the public that the Council was not approving or voting on any proposal for the development of Pad I tonight; Acknowledged that the Council had reviewed comprehensive solutions to existing traffic problems and stated he could support the proposal with the traffic improvements that have been recommended; however he could not support the proposal if the traffic improvements are not included. Council Member Dickens provided the following comments: - Acknowledged public comments and assured the public that the Council was committed to making sure the public is heard when an application for development of Pad I comes forward; Acknowledged that the owners of the Center are making a good faith effort and are moving forward with traffic circulation improvements; Stated he wanted assurance that the City is adequately protected when moving forward; Referred to the applicant's stated timeline of 18-24 months, which makes it reasonable to include a requirement that the traffic improvements be installed within three years; Noted that the Center would be losing a portion of retail space and associated sales tax revenue; Suggested additional language be added to the conditions of approval that restricts the non- retail use in Building J to a maximum of 4,550 square feet and to add language in the Resolution and its Exhibit A to state that this amendment to Conditional Use Permit 96-541 authorizes a financial institution (Wells Fargo Bank) to occupy "a portion or Building J of the Five Cities Shopping Center; Supported specific language in condition #7 that identifies the traffic improvements; Minutes: City Council Meeting Tuesday, Apri/11, 2006 Page 5 - Suggested that staff bring back the traffic improvement plan as a separate item from Pad I. - Suggested further traffic improvements may be needed when Pad I comes forward, such as a traffic signal; - Noted he could support the proposal with minor modifications as discussed. Mayor Pro Tem Guthrie provided the following comments: - Supports the concept of the proposed financial use; Noted that when the project first came forward, the original right turn lane mitigation measure would have solved some of the circulation issues; Acknowledged the traffic study that was completed which quantified the current traffic operating conditions at the Center; Expressed concern that the entire traffic improvement plan is tied only to Pad I; Slated he could support the financial institution if the right turn lane could be included now; Supported the three year time limit for installation of the traffic improvements; however, expressed concern that some of the improvements on private property could not be enforced. Mayor Ferrara provided the following comments: - Recognized that if the intent of the applicant is to move forward with build-out of Phase 2, a good faith effort would be to make the traffic improvements now in order to measure performance results; Suggested the City assist the applicant with fast tracking the steps required to install the improvement; Slated he needed to see the results of the traffic improvements before adding to the intensity of use; Slated it was unacceptable that the traffic improvements are tied to Pad I; Noted that it is still unclear about the status of the soils engineering study and its potential impact on mitigation measures; Could not support the proposal without requiring installation of the traffic improvements. Council Member Arnold suggested that based on discussion held, that condition #7 be amended to require the traffic improvements be inslalled and completed within 18 months of approval. Council Member Arnold moved to adopt a Resolution as follows: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING AMENDED CONDITIONAL USE PERMIT CASE NO. 06-001, APPLIED FOR BY WELLS FARGO BANK, LOCATED AT 911 RANCHO PARKWAY (FIVE CITIES SHOPPING CENTER, PHASE II" as amended to include a modification to the Resolution and Exhibit A that slates a financial use is allowed in "a portion or Building J; to include a modification in Condition of Approval No. 7 to change three (3) years to eighteen (18) months. and with regard to Phase 2 traffic improvements, add "as referenced in the Five Cities Center booklet dated April 11. 2006"; and to add language that allows the City to perform the improvements on private property if the applicant does not perform them; to restrict the financial use in Building J to no more than 5.000 square feet; and to renumber the conditions accordingly. Further. the name of the applicant should be modified from Wells Fargo Bank to Levon Industries. Council Member Costello seconded. City Attorney Carmel noted that Condition No.7 should be modified to slate the letter of credit should be in a form approved by the City Attorney. The motion and second held, and the motion carried on the following roll-call vote: Minutes: City Council Meeting Tuesday, Apri/11, 2006 Page 6 AYES: NOES: ABSENT: Arnold, Costello, Dickens, Guthrie, Ferrara None. None Mayor Ferrara called a recess at 9:25 p.m. The Council reconvened at 9:38 p.m. 9.c. Consideration of Vesting Tentative Tract Map No. 04-006, Planned Unit Development No. 04-005 and Minor Exception Case No. 05-015 to Subdivide a 1.8- Acre Site Into Nineteen (19) Lots Resulting In 24 Density Equivalent Town Homes and Condominiums as a Mixed Use with Existing Fitness Club and Medical Offices; Applied for by Russ Sheppel for Property Located on Oak Park Blvd. and James Way (Oak Park Professional Plaza). Associate Planner Heffernon presented the staff report and recommended the Council adopt a Resolution approving Vesting Tentative Tract Map No. 04-006, Planned Unit Development No. 04-005 and Minor Exception No. 5-015. Staff responded to questions from Council regarding storm water retention versus detention as it relates to the 100 year flood leveVintensity; the nature of soils as it relates to use of pervious pavers; open space requirements as it relates to Planned Unit Developments; methods for collecting surface run-off; the structure of the pedestrian trail as it relates to the proximity to homes; whether access gates would be included for residents to access the trail; the height of the wall of the adjacent hotel building; mixed use density calculations as it relates to the proposed land use; and the location of and planned holding capacity of the detention basin. Mayor Ferrara opened the public hearing and invited comments from those in the audience who wished to be heard on the matter. Kim Hatch, Pultz & Associates, architect representing the applicant, briefly reviewed the history of issues related to the project; reviewed the original and revised master plans for the site; reviewed previous proposals which were not built; and then presented the proposed multi-family project including the site plan, elevations, color schemes, floor plans, amenities, parking, and circulation. He then responded to questions regarding building height and the proposed drainage system. Mr. Hatch noted that the Planning Commission had recommended the project include methods for collecting surface run-off from the site for use on landscaped areas (minimum of 25% of landscaped areas) to reduce water use and minimize run-off to the extent feasible, and requested the condition be changed to remove the word "collecting" and replacing it with "reducing". Further discussion ensued regarding ingress and egress to the site; driveway alignment; traffic circulation within the site; why an on-site parking study was not pursued; and clarification regarding design options as it relates to garages and laundry facilities. Steve Ross, Garden Street, expressed safety concerns regarding ingress and egress to the project from James Way as it relates to the driveway's proximity to the Oak Park Blvd. intersection. Rebecca Fav. Meadow Way, expressed concern regarding the project's high density; impacts to the large wildlife population; stated that she read the Environmental Review Initial Study which included a wetland mitigation plan and felt the mitigation proposals will not adequately address the potential impacts to the riparian corridor. She stated the wildlife corridor needs to be protected; expressed concern with on-site parking availability; stated that the mitigation measures for noise are not adequate for protecting the wildlife or the adjacent neighbors. She referred to the City's Wastewater Master Plan (page 18) and expressed concerns about the additional impacts to the sewer without sewer upgrades. She concluded by stating that the Minutes: City Council Meeting Tuesday, April 11, 2006 Page 7 mitigation measures do not really address creek and wildlife protection very well. She noted that the mitigation measures for building and construction was well addressed. Dan Scarrv. representing Ray Bunnell, who owns the adjacent hotel, stated that Mr. Bunnell approved of the original project; however, he does not necessarily approve of this version. He stated Mr. Bunnell attended the Planning Commission meeting and agreed that the project was not in scale with the rest of the area. He expressed concern with their existing access and parking easements which allows additional parking spaces. He noted that the required open space is not contiguous to the residences; there is no buffer between the houses and the road; there is no place for people to have outdoor activities; and noted that the access easement is not a bi-Iateral access easement and the hotel wants some control in and out of their property. He suggested that notification process should be put in place to notify the Homeowners Association that there is a shared parking agreement. Richard Nuttina, La Canada, expressed concern that there was no consideration of the existing parking problem for the Kennedy Fitness Center and the project as presented does not provide for additional parking. Russ Sheooel, applicant, noted that this project has been in the planning stages for three years and he was pleased to present this proposal to the Council. He stated that the previous project that was approved and not built was for a large medical office facility and he felt the City did not need more medical offices. He stated the City needs low and moderate income housing and opportunities for live-work residential units. He said the plan does provide for adequate parking availability; and responded to concerns relating to environmental issues. He referred to the Wetland Mitigation Plan which provides for drainage systems that will protect the creek and riparian areas. He noted that the proposed walkway is a public benefit, and stated that the continued and future success of the businesses requires parking availability. He addressed parking provided for residential units and noted that he was confused about the comments made on Mr. Bunnell's behalf as he endorsed the project at the Planning Commission meeting as long as the shared parking was protected. He acknowledged there was a shared parking agreement with the adjacent property owner, and noted that there would be fencing near the riparian area to discourage publiC access. Mr. Sheppel responded to questions from Council regarding the shared parking arrangement and stated the hotel has a locked gate between their parking lot and his parking lot and can control access. He stated that this access is also used for emergency access. Mr. Scarrv. representing Mr. Bunnell, stated it was his understanding that their easement is not just for emergency access, it is to allow unlimited ingress and egress. Discussion ensued regarding the nature and intent of the access easement and the existing gate controlled by the hotel. Steve Orosz, traffic engineer representing the applicant, addressed the plan for improving the configuration of the existing driveway (ingress/egress). He responded to concerns about parking and noted that the applicant is preserving the total number of parking spaces that are needed for the current uses and adding 100% of the required parking to meet the residential and visitor parking standards. He also confirmed the status of the easement as an access easement and not just an emergency access easement. Council and staff discussion ensued regarding parking and the shared parking agreement on the project site. Brett Weaver, managing partner for Kennedy Glub Fitness, spoke about the Club's hours of operations (5:00a.m.-10:00p.m.); stated the parking lot was not impacted during those sixteen hours; noted that peak hour usage was generally from 8:3Q-10:30a.m. and again from 4:30- 7:00p.m.; noted that the Club had once secured an arrangement with the church across the street and with the hotel for off-site parking for their employees which could be reinstated; stated - __________________~_~________________________________________n_______________________ Minutes: City Council Meeting Tuesday, Apri/11, 2006 Page B that different class schedules could be created to address parking issues; and stated that the property owners (Kennedy and Sheppel) can work together for continued parking solutions. Kim Hatch, Pultz & Associates, further responded to issues relating to the pathway and fencing; stated that he was not clear about Mr. Bunnel's position as he supported approval of the project at the Planning Commission meeting; and reiterated that the concept of developing residential was initiated to try to help reduce the parking demand. Mr. Orosz gave a brief synopsis of the results of the parking study and discussion ensued regarding alternative parking configurations and circulation patterns. No further pUblic comments were received and Mayor Ferrara closed the public hearing. Council Member Dickens provided the following comments: - Add mitigation measure to provide some type of barrier between the pedestrian path and riparian area to prohibit and discourage public access without inhibiting. any migration or animal movement in that area; As it relates to wastewater, what is status of sewer line upgrade? (Staff responded that increased capacity is needed and the Lift Station No. 1 project currently under construction will address this need); Supported the suggestion to notify future residents and property owner regarding the access agreement to avoid potential disputes (perhaps in the CC&R's); Noted that the project meets the City's needs for housing; the project is unique and will likely attract young couples/professionals or retirees; Supports the project overall; applicant has addressed the issues; The design is attractive; private and public open space will be an asset; the amenities provided will compliment the area. Council Member Arnold provided the following comments: - Impressed with most of project; townhouse design by creek is excellent; Concerned with building height issue for condominiums; cannot mitigate with landscaping; Option may be to bring condominium building closer to Oak Park and attach the garages; Concerned with traffic flow and circulation; housing component will be impacted the most; suggested diagonal parking to address easier ingress and egress; Would like to see story poles to demonstrate building height; Density is adequate; Parking is working now; Kennedy Club is responsible to accommodate additional parking for membership; Prefers not to approve the project tonight until looking further at the height issues or moving the building back toward the road; Would like to see traffic flow studied; however, if everything else works, could move forward; Detention system should be doubled in size to catch some of the water from the parking lot. Council Member Costello provided the following comments: - Circulation one way in and one way out appears to be effective; - No problem with two-foot height exception; - Has concern with lack of open space; need more open space; - Would like project density to be reduced closer to minimum density requirement with more open space near the creek; Minutes: City Council Meeting Tuesday, April 11, 2006 Page 9 - Supports fencing as barrier between the walkway and the creek; - Cannot support the project with proposed density. Mayor Pro Tem Guthrie provided the following comments: - Would like further study of circulation issue; Open space provided is adequate; Agrees CC&R's should include provisions regarding shared parking; Acknowledged pathways next to environmentally sensitive areas and the need to protect those areas; Condo building design is awkward; understands it is impacted by drainage and parking easements; Could be designed better; however, he could support as proposed; Parking will work and there will be fewer impacts with the residential use rather than commercial use; Acknowledged the purpose of the Planned Unit Development process as it relates to development of a mixed use project and open space requirements; Wants project to come back with a circulation analysis as it relates to one way in and one way out. Mayor Ferrara provided the following comments: - Likes residential concept; however, has reservations about the design; Design and amenities will not drive occupancy; price and availability will be factors to live in Arroyo Grande; may attract families; The design of this mixed use project does not provide privacy between residential units and between other uses on the site; The style proposed for the residential units is addressed; however, there is a density issue as it relates to scale, particularly the 3-story aspect; Would like to see larger structure reduced in size, mass and scale, with more pleasing transitions within the project; Applauded applicant for willingness to restore the bank and address the sedimentation and erosion issues related to the creek; suggested resources that could help the applicant, including Resource Conservation District, Salmon Enhancement, etc.; Traffic and circulation: Cannot make mandatory findings relating to compatibility or that the design protects the public health, safety, and welfare as it relates to the three-story structure. There are no recreational areas; and the mix of cars, open pedestrian areas and the hotel as it relates to traffic and access is problematic. Agreed that the property owners need to work effectively together to resolve parking issues; Not in position to move forward at this time; mass of the one building is not acceptable; Suggested a reduction in the density. There was further discussion regarding the circulation issues, the circulation plan, and design issues. At 12:15 a.m., City Attorney Carmel reminded the Council of the policy that requires a unanimous vote to continue the meeting past 12:00 midnight. Mayor Ferrara requested a voice vote of all those in favor of continuing the meeting. Council Members Dickens, Arnold, Mayor Pro Tem Guthrie and Mayor Ferrara voted AYE. Council Member Costello voted NO. There being 4 AYES and 1 NO, the motion failed. Minutes: City Council Meeting Tuesday, April 11, 2006 Page 10 Brief discussion ensued with direction to the applicant regarding the traffic circulation plan and design issues. Council Member Arnold moved to continue consideration of Vesting Tentative Tract Map No. 04- 006, Planned Unit Development No. 04-005 and Minor Exception Case No. 05-015 to subdivide a 1.8-acre site into nineteen (19) lots resulting in 24 density equivalent town homes and condominiums as a mixed use with existing fitness club and medical offices; applied for by Russ Sheppel for property located on Oak Park Blvd. and James Way (Oak Park Professional Plaza) to the City Council meeting of May 9, 2006. Mayor Pro Tem Guthrie seconded, and the motion carried on the following roll-call vote: AYES: NOES: ABSENT: Arnold, Guthrie. Dickens, Costello, Ferrara None None 11. NEW BUSINESS ITEMS None. 12. CITY COUNCIL MEMBER ITEMS None. 13. CITY MANAGER ITEMS None. 14. COUNCIL COMMUNICATIONS None. 15. STAFF COMMUNICATIONS None. 16. COMMUNITY COMMENTS AND SUGGESTIONS None. 17. ADJOURNMENT Mayor Ferrara adjourned the meeting at 12:25 a.m. Isl Tony Ferrara, Mayor ATTEST: Isl Kelly Wetmore, City Clerk (Approved at CC Mtg 04125/2006)