HomeMy WebLinkAboutPC Minutes 02-20-07CALL TO ORDER:
Atascadero City Council
Atascadero Planning Commission
SPECIAL JOINT MEETING
MINUTES
Tuesday, February 20, 2007, 7:00 P.M.
Mayor Luna called the meeting to order at 7:00 p.m.
ROLL CALL:
Present: Council Members Beraud, Clay, O'Malley, Brennler, and Mayor
Luna
Commissioners Heatherington, Jack, Marks, O'Grady, Slane, Fonzi,
and Chairperson O'Keefe
Absent: None
Others Present: City Clerk / Assistant to City Manager Marcia McClure Torgerson,
Deputy City Clerk Grace Pucci
Staff Present: City Manager Wade McKinney, Community Development Director
Warren Frace, Public Works Director Steve Kahn, Associate Planner
Kerry Margason, and City Attorney Patrick Enright.
CC/PC Minutes Special Joint Meeting 02/20/07
Page 1 of 7
JOINT STUDY SESSION:
1. PLN 2006-1111: Condominium Conversions
Community Development Director Warren Frace gave the staff report and introduced
Barbara Kautz.
Barbara Kautz of Goldfarb and Lipman reviewed the issues and options individually,
with Director Frace answered questions, public comment was taken, and then Council
and Commissioners discussed the options and gave direction to staff.
Al. Reduction in Rate of Conversion
PUBLIC COMMENT
Ken Trigeros, Project Manager Peoples Self Help Housing, stated their concern is the
difficulty in replacing rental apartments based on the construction costs at the time. Mr.
Trigeros answered questions of Council.
Joanne Main asked if someone wanted to convert an apartment to condominiums could
the city require that individual to provide the property for another developer to build
apartments.
Mike Jackson asked if there were a minimum number of apartments that would be
exempt, and explained that there are a large number of rental units in town that are not
apartments, and the city must look at the number of rental units that are owner -occupied
in the town and how this affects the rental market.
Mayor Luna closed the Public Comment period.
Vice Chairperson Fonzi expressed concern that this does not speak to older
apartments, which tend to become blighted and she would like there to be a way to
bring them up to date to keep the housing stock decent.
Commissioner O'Grady stated that Option #3 appeals to him because of the difficulty in
complying with the differing rules in the various municipalities so if San Luis Obispo
County and City have enacted #3 there would be a benefit for Atascadero to do the
same thing. Additionally Option #3 would help with maintaining and enhancing the
affordable housing stock.
Council Member Beraud indicated she supports Option #3, and would like to follow the
county's lead and have the number be one-fourth.
CC/PC Minutes Special Joint Meeting 02/20/07
Page 2 of 7
Council Member Clay commented that if the city goes with Option # 3 it should not
include the condo map on new construction, because that is not truly a rental property.
He also indicated that he favors the 5 units or more if Option #3 is decided upon.
Chairperson O'Keefe stated she supports Option #3 as she has a problem with basing it
on the vacancy rate because determining that rate is very difficult.
Mayor Luna commented that he supports Option #3 and going with the county at one-
fourth.
Council Member O'Malley stated it would be better to look at incentives for expanding
apartment construction rather than trying to work against the market. He agreed that it
would be wise to match with the Department of Real Estate's figure of 5 or more and
exempt smaller numbers.
Commissioner Heatherington agreed with Option #3.
Mayor Pro Tem Brennler stated he was comfortable with the San Luis Obispo County
model as indicated in Option #3.
Council Member Beraud expressed concern with exempting projects of 5 units or less
as there are a lot of smaller projects because a lot of land has recently been rezoned to
multifamily from SFR, and she is concerned that the city might be missing out with this
exemption.
Commissioner O'Grady agreed that there needs to be a different criteria for smaller
units, but is uncomfortable with a blanket exemption because the impact on affordable
housing is unknown at this time.
Commissioner Heatherington suggested an inventory of the number of units that are at
four or less and then look at a mechanism to keep them from converting.
There was Council and Commission consensus to go with Option #3 at 25%, that
the only rental units that will count are those where condo maps were not
recorded and that tentatively there is a desire to exempt from the ordinance units
of four or less pending a review of what percentage of the city's rental housing
stock that is.
A2. Inclusionary Requirement or Retention of Existing Affordability.
PUBLIC COMMENT
Mike Jackson commented that this was sounding socialistic with high fees and high
management costs at the expense of owners and tenants. He stated that those who
CC/PC Minutes Special Joint Meeting 02/20/07
Page 3 of 7
want to own the homes need the ability realize some appreciation out of their home. He
indicated that if owners cannot recoup their investment or borrow on the home's equity
they will not be able to keep the property up and it will go downhill.
Mayor Luna closed the Public Comment period.
Commissioner O'Grady commented that a different approach should be applied to the
smaller units.
Council Member O'Malley stated he would like to include some consideration for natural
disasters so a homeowner can borrow against their equity.
Council Member Clay stated he was not in favor of 10% for the very low income
category as it cannot be reached; the 10% should be low and moderate.
Chairperson O'Keefe stated she would prefer to make it a combination of low and very
low income housing.
Council Member Beraud stated she wants to see a significant number of affordable
units as the city currently has a lot of moderate category, but none in the low and very
low categories.
Mayor Luna stated this must be tied to the existing affordability, and suggested tying the
20% to what the existing rents are, and if that is low it should stay low and if it is
moderate it should stay moderate.
Director Frace cautioned that this approach, though it makes sense in theory, could take
months for staff and the applicant to determine.
Vice Chairperson Fonzi suggested going with Option #4 rather than #3, and keeping
with the current city inclusionary zoning regulations.
There was Council and Commission consensus to go with Option #4, and include
workforce housing. Any multifamily building that converts to condominiums
would meet the city's existing inclusionary requirements which apply to 20% of
the total units and of that 20%, 20% is affordable to very low, 37% to low and 43%
to moderate income households. In -lieu fees would apply to units of 4 or less.
A3. Additional Protections for Existing Tenants.
Ms. Kautz suggested 1) adding a relocation payment of two or three months (A3 -1.C) it
could be disclosed to the tenant that they are entitled to three months rent and then the
tenant could elect to get an alternative payment, 2) allowing some additional time to
move for seniors and disabled people i.e. allowing a year for those over 62 or disabled
CC/PC Minutes Special Joint Meeting 02/20/07
Page 4 of 7
(A3-2.13), and 3) to allow those with children to stay until the end of the school year (A3 -
2.C).
PUBLIC COMMENT — None
There was Council and Commission consensus that in addition to what the city
now has the following would be added: Option #A3-1.0 with the option that the
owner and tenant can negotiate, and Options #A3 -2B, and C.
A4. Development Standards
Commissioner O'Grady suggested exempting the disability requirement from older
buildings on a case by case basis.
Council Member O'Malley stated that Option #8 should be required and that he would
like to get the opinion of Police Chief and Fire Chief on this when it is reviewed.
Commissioner Heatherington recommended adding some of the "Cool Cities" ideas for
energy efficiency in the standards.
Chairperson O'Keefe explained that there are currently no standards for new
condominiums where there is an existing house, and the Commissions' hands are often
tied. She would suggest adding standards for those through a Conditional Use Permit
which would lead to a better project and improved neighborhood.
Director Frace stated the city would have more leverage if it required a CUP for
development and design review process on this type of hybrid development.
Mayor Luna expressed concern regarding feedback from the Police and Fire
Departments and the controversy regarding fire sprinklers, as he would not want this to
come back with the Fire Chief requiring sprinklering the entire existing building.
PUBLIC COMMENT
Mike Jackson explained that the reasons the units are being started and then applying
for a condo map is because the builders can start construction right away, and that wait
time is bankrupting the builders/homeowners. He stated that if the city puts regulations
and more controls on builders then it must give something on the other side and move
ahead quickly on projects.
Mayor Luna closed the Public Comment period.
Mayor Luna stated that the city must have the ability to have some conditions and more
standards, and if that requires a CUP, than that would be acceptable.
CC/PC Minutes Special Joint Meeting 02/20/07
Page 5 of 7
Council Member Clay commented that the standards could be increased but without the
use of a CUP which takes too long.
Barbara Kautz explained that with condo conversions it really is necessary to have a
CUP to have control over the conversions; this would be distinct from the hybrid projects
referred to earlier.
Director Frace stated that updating appearance review and zoning standards are
expensive and not budgeted at this time. He suggested that in the interim staff can look
at the options for the potential of a CUP for infill hybrids. There was Council and
Commission agreement for staff to proceed in this direction.
There was Council and Commission consensus to have an inspection by the
building inspector and Fire Marshall and the opinion of the Police and Fire Chiefs,
particularly in terms of fire sprinklers, to require energy efficient lighting, and to
require a CUP for condominium conversions, but excluding hybrid developments
at this time.
A5. CC&R Requirements.
PUBLIC COMMENT — None
There was Council and Commission consensus to adopt Options #A5-1, 2, 3 and
5.
Mayor Luna recessed the hearing at 9:23 p.m.
Mayor Luna called the meeting back to order at 9:28 p.m.
2. PLN 2006-1140: Site Condominium Moratorium
Community Development Director Warren Frace gave the staff report and with City
Attorney Patrick Enright answered questions of Council and the Commission.
PUBLIC COMMENT — None
There was Council and Commission consensus to choose Option #2 including
conditions in Option #3.
City Attorney Patrick Enright reported that the current moratorium on apartment
condominiums is good for one year, and will be coming back to the Council in March for
extension. He also commented that there are several new members on the Planning
CC/PC Minutes Special Joint Meeting 02/20/07
Page 6 of 7
Commission and Parks and Recreation Commission and he is working with staff to set up
a seminar on Brown Act conflicts, which they hope to present in March or April.
ADJOURNMENT:
Mayor Luna adjourned the meeting at 9:46 p.m. The City Council adjourned to their next
regularly scheduled meeting on February 27, 2007. The Planning Commission
adjourned to their next regularly scheduled meeting on March 6, 2007.
MINUTES PREPARED BY:
Grace Pucci, Deputy City Clerk
\\Cityhall\cdvlpmnt\— PC Minutes\PC Minutes 07\CC-PC Special Joint Mtg Minutes 02-20-07.doc
CC/PC Minutes Special Joint Meeting 02/20/07
Page 7 of 7