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08-0506_CC_Minutes_Regular Meeting1 MINUTES May 6, 2008 SAN JUAN CAPISTRANO CITY COUNCIL REGULAR MEETING CLOSED SESSION: Closed Session was held at 5:00 p.m. as a Special Meeting — see separate agenda & minutes. BUSINESS SESSION Mayor Soto called the Regular Meeting of the City Council of the City of San Juan Capistrano to order at 6:43 p.m. in the City Council Chamber. Council Member Hribar led the Pledge of Allegiance and Council Member Allevato gave the invocation. ROLL CALL COUNCIL MEMBERS PRESENT. Sam Allevato, Tom Hribar, Dr. Londres Uso, Mayor pro tem Mark Nielsen and Mayor Joe Soto COUNCIL MEMBERS ABSENT: None STAFF PRESENT: Dave Adams, City Manager; Omar Sandoval, City Attorney; Cynthia L. Russell, Assistant City Manager; Maria Morris, Deputy City Clerk; Steve Apple, Planning Director; Nasser Abbaszadeh, Engineering & Building Director; Karen Crocker, Community Services Director; Lt. Mike Betzler, Chief of Police; Grant Taylor, Assistant Planning Director; Douglas Dumhart, Economic Development Manager; Eric Bauman, Water Engineering Manager; Bill Ramsey, Principal Planner; Alan Oswald, Senior Traffic Engineer; David Contreras, Senior Planner; and Eileen White, Recording Secretary. Agenda items are presented in the originally agendized format for the benefit of the minutes' reader, but were not necessarily heard in that order. ANNOUNCEMENT OF CLOSED SESSION ACTIONS - None CITY COUNCIL COMMENTS AND ORAL REPORTS Council Member Allevato reported he was elected to Chair the Orange County Transportation Authority Growth Area #9 Committee and voted to approve a $200,000 grant for JSerra/Rancho Niguel Road intersection improvements; announced Capistrano Animal Rescue Effort is in the planning process for their adoption center and targeting Halloween for the grand opening; and stated the US Fish and Wildlife Service has issued confirmation that the 241 toll road is in compliance with the Endangered Species Act. 5-06-2008 Council Member Hribar announced attendance at a formal dinner at Camp Pendleton celebrating the safe return of the 1/11 Marine Battalion; and a recent water desalinization project meeting. Mayor pro tem Nielsen reported several meetings with staff, residents, and developers; and thanked staff and volunteers for the tremendously successful El Camino Real Park community planting project. Mayor Soto's schedule included a meeting with the San Juan Basin Authority; several community and ceremonial events including: the Mayor's first business walk at Vermeulen Plaza; dedication of EI Camino Real Park; reception for WASC — Capistrano -Laguna Regional R.O.P; presentation of the Mayor's trophy at the Chamber's Annual Golf Tournament; Earth Day celebration; Boys & Girls Club of Capistrano Valley; the Senior's Spring Fling; a forum regarding childhood risks, a tour of the EI Adobe Center; and the Mission's annual Mariachi Festival. OPEN SPACE COMMITTEE REPORT Mayor pro tem Nielsen announced the May 12, 2008, Open Space Committee meeting in Chambers; and Open Space Committee update to be presented at the monthly breakfast hosted by the Chamber of Commerce. ANNOUNCEMENTS OF COMMUNITYWIDE INTEREST Karen Crocker, Community Services Director, announced the following upcoming communitywide events: events related to National Historic Preservation Month; events hosted by the Mission San Juan Capistrano including their summer concert series and a heritage celebration, and; the City -sponsored business workshop. INTRODUCTIONS PRESENTATIONS AND DONATIONS NAVID RASTIN RECOGNIZED FOR BEING NAMED THE BOYS & GIRLS CLUBS OF CAPISTRANO VALLEY'S 2007 YOUTH OF THE YEAR (610.40) Cynthia L. Russell, Assistant City Manager, recognized Navid Rastin for being named the Boys & Girls Club of Capistrano Valley's 2007 Youth of the Year; and Mayor Soto presented him with a Certificate of Recognition. 2. WEEK OF MAY 4-10, 2008 DESIGNATED AS NATIONAL PET WEEK AND BE KIND TO ANIMALS WEEK (610.40) Mayor Soto proclaimed May 4 through 10 as National Pet Week and Be Kind to Animals Week and presented the proclamation to the Presidents of the Capistrano Animal Rescue Effort (CARE) and The Ark of San Juan Capistrano. 2 5-06-2008 3. INTERSTATE 5/STATE ROUTE 74 (ORTEGA HIGHWAY) INTERCHANGE IMPROVEMENT PROJECT PLANS PRESENTED, WITH COUNCIL REQUEST FOR EXTENDED PUBLIC COMMENT PERIOD. (DEIR/EA) (800.20) Amy Walston, Principal Environmental Planner representing California Department of Transportation (Caltrans) presented a report regarding the proposed 1-5/State Route 74 (Ortega Highway) Interchange Improvement Project. Council Action: Moved by Mayor pro tem Nielsen, seconded by Mayor Soto and carried unanimously, 5-0, to request the California Department of Transportation extend the public comment period for the Environmental Impact Report an additional 30 days. 4. STATUS REPORT RECEIVED CONCERNING METHYL TERTIARY BUTYL ETHER (MTBE) TESTING AND REMEDIATION CONDUCTED BY CHEVRON (530.25) Michael Donovan, representing PSOMAS, narrated a slide presentation. Jack Frame, representing Chevron, narrated a slide presentation. 5. COMMISSIONERS PRESENT AT MEETING INTRODUCED. (110.10) Mayor pro tem Nielsen recognized the following individuals in attendance: Gail Zukow, Kathy Hooper, and Ronald Denman, Parks, Recreation and Equestrian Commission; Ginny Kerr and Robert Cardoza, Planning Commission; Jeff Parkhurst, Design Review Committee; Don Tryon, Cultural Heritage Commission; William Bonney, Housing Advisory Committee; and Scott Brown, Orange County Fire Authority. ORAL COMMUNICATIONS Joan Irvine Smith, City resident, provided information about the Irvine Ranch Natural Landmark program, stewardship of open lands, Heritage Art Sale planned for this month; and thanked Council for their action related to the Ortega Highway Interchange. Jim Vance, City resident, spoke regarding the ongoing resident purchase of the Capistrano Mobile Home Park and appraisal process. CONSENT CALENDAR Council Action: Moved by Council Member Allevato, seconded by Mayor pro tem Nielsen, and carried unanimously, 5-0, to approve items 1 through 6, and 8, 9, 10, 12 and 13 as recommended by staff. 1. MOTION TO READ ORDINANCES BY TITLE ONLY APPROVED. 5-06-2008 2. MINUTES OF THE REGULAR MEETING OF APRIL 1, 2008, APPROVED AS SUBMITTED. 3. ACCOUNTS PAYABLE WARRANTS DATED APRIL 10, 2008, AND APRIL 24, 2008, IN THE TOTAL AMOUNT OF $2,936,809.42; AND PAYROLL WARRANTS DATED APRIL 18, 2008, IN THE AMOUNT OF $282,102.17, RECEIVED AND FILED. (300.30) 4. CASH BALANCES BY FUND — MARCH 31, 2008, RECEIVED AND FILED. (330.50) 5. REPORT OF INVESTMENTS — MONTH ENDING MARCH 31, 2008, RECEIVED AND FILED. (350.30) 6. NEW DEVELOPMENT APPLICATIONS STATUS REPORT — MONTH ENDING APRIL 15, 2008, RECEIVED AND FILED. (440.10) 7. RESOLUTION NO. 08-05-06-01 ADOPTED CONCERNING INSTALLATION OF PERMIT PARKING ON EL HORNO STREET AND SETTING FORTH CRITERIA FOR ADJACENT STREETS TO REPLICATE PROCESS. (570.70) This item was removed from the Consent Calendar by Council Member Hribar to discuss the project's impacts on adjacent streets. Council Member Allevato established recent addition of a second patrol car to provide additional enforcement and requested to be informed of repeat violators. Council Action: Moved by Council Member Uso, seconded by Council Member Hribar and carried unanimously, 5-0, to adopt Resolution No. 08-05-06- 01, entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, ESTABLISHING NO PARKING EXCEPT BY PERMIT, 3:00 A.M. TO 6:00 A.M. ON EL HORNO STREET FROM EL CAMINO REAL TO LA CALERA STREET." 8. TWO-YEAR LICENSE AGREEMENT WITH THE CHAMBER OF COMMERCE FOR THE USE OF YORBA STREET TO CONDUCT A FARMER'S MARKET FROM MAY 6, 2008, THROUGH MAY 6, 2010, APPROVED. (600.30) 9. AGREEMENT FOR VALVE AND FIRE HYDRANT MAINTENANCE SERVICES WITH IWATER, INC., PER THE UNIT PROVIDES AND NOT -TO -EXCEED $166,000; AND THE MAYOR AUTHORIZED TO EXECUTE THE AGREEMENT. (600.30) 10. PLANS AND SPECIFICATIONS FOR THE LOS RIOS PARK AND PARKING LOT IMPROVEMENT PROJECT APPROVED; THE CITY MANAGER 4 5-06-2408 AUTHORIZED TO DIRECT A 10% CONTINGENCY IN CONSTRUCTION COSTS AS NEEDED; AND STAFF AUTHORIZED TO RECEIVE BIDS. (CIP NO. 465) CITY COUNCIL PRIORITY NO. 12A (600.30) 11. CONSIDERATION OF AGREEMENT FOR WATER AND SEWER OPERATIONAL AND ORGANIZATIONAL ASSESSMENT WITHDRAWN FROM THE AGENDA BY STAFF. (URS CORPORATION) (600.30) 12. LICENSE AGREEMENT WITH SOUTH COAST FARMS FOR FARM OPERATIONS AT THE KINOSHITA FARM, IN THE AMOUNT OF $25,000 ANNUALLY FOR A TERM OF 10 YEARS, APPROVED; AND THE MAYOR AUTHORIZED TO EXECUTE THE AGREEMENT. (600.30) 13. RESOLUTION NO. 08-05-06-02, ENTITLED "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, (EARLY RETIREMENT INCENTIVE AGREEMENT) (OCERS)," ADOPTED. (600.50) PUBLIC HEARINGS 1. RESOLUTION NO. 08-05-06-03 ADOPTED CERTIFYING THE FINAL ENVIRONMENTAL IMPACT REPORT (FEIR); RESOLUTION NO. 08-05-06-04 ADOPTED OVERTURNING THE PLANNING COMMISSION'S DENIAL OF LAND USE ENTITLEMENTS UNDER THEIR JURISDICTION; AND RESOLUTION NO. 08-05-06-05 ADOPTED WITH REVISION APPROVING CERTAIN ENTITLEMENTS. (VENTANAS BUSINESS CENTER) (CENTRA REALTY) (410.601420.701440.251670.501420.50/600.30) Description: Request from Centra Realty for approval of 11 zoning applications and certification of the Final Environmental Impact Report to develop the Ventanas Industrial Park project, consisting of 11 multi -tenant two-story industrial buildings, totaling 236,329 square feet in building area, on a vacant parcel located on the west terminus of Calle Arroyo bordering Interstate 1-5 to the west and San Juan Creek to the south. The Planning Commission reviewed the project at four meetings, then took action to certify the FEIR and deny the zoning entitlements, making findings that the project does not provide sufficient setbacks from San Juan Creek Road and 1-5; is inconsistent with the City's efforts to preserve open space; provides insufficient buffer areas between the creek and the trail; would produce lighting spillover into San Juan Creek and Ortega Equestrian Center; and proposes insufficient parking. Staff recommended Council adopt the resolution certifying the FEIR; adopt a resolution overturning the Planning Commission's denial of land use entitlements under their jurisdiction (i.e. Architectural Control, Grading Plan Modification, and Tree Removal Permit) subject to conditions of approval; and adopt a resolution approving the Tentative Parcel Map, Floodplain Land Use Permit, Lot Line Adjustment/Easement, Public Right -of -Way Vacation, License Agreement, and Shared/Joint Use Parking Agreement subject to conditions of approval. 5 5-06-2008 Written Communications: Report dated May 6, 2008, from Grant Taylor, Assistant Planning Director. Supplementary Agenda Report dated May 6, 2008, from Steve Apple, Planning Director. Letter dated April 30, 2008, from Gregory Allan, no city of residence given, supporting the project to establish the bike trail. Letter dated April 7, 2008, from Thomas Landolf, no city of residence given, urging approval of the development as it will be a credit to the City. Letter dated April 29, 2008, from Wyatt Hart, no city of residence given, urging approval of Ventanas due to its ability to produce sales tax revenues; project compliance with applicable guidelines; and high architectural quality. Letter dated April 22, 2008, from Michael Zani, no city of residence given, urging approval to allow opportunity for Digibeam Corporation to relocate to this location. Letter dated April 1, 2008, from Marc Sorgatz, president of American Speedy — Printing Center, no city of residence given, urging approval of the project to allow him to buy a unit within the center. Letter dated March 31, 2008, from Ken Friess, City resident, urging approval of the project as it complies with General Plan guidelines for that site. Letter dated April 2, 2008, from Jeff Stoddard, City property owner, urging approval of the project as it meets the standards and goals for the area. Letter dated April 3, 2008, from Mano Ghaneeian, Ortega Gas Station owner, urging approval of the project to help generate business for existing businesses, fund improvements to the Ortega Highway off ramp, and increase sales tax revenues for the City. (3 unintelligible letters) Letter dated April 29, 2008, from Dennis and Jeanne Narlinger, City residents, urging approval of the project to provide property tax revenues for the City budget. Letter dated May 1, 2008, from Allen Matkins, Matkins Leck Gamble Mallory & Natsis, LLP, Attorneys at Law, 1900 Main Street, Sth Floor, Irvine, CA 92614, representing Centra Realty, pointing out errors in the Planning Commission 6 5-06-2008 1 findings; and urging Council to approve the project to provide redevelopment tax revenues for the City budget as well as provide a foundation for future business growth, private investment, and employment opportunities in the community. Letter dated May 5, 2008, from Bert and Louise Dumais, City residents, supporting the Planning Commission denial and requesting a less dense project. Letter dated May 5, 2008, from Marion Costello, City resident, supporting the Planning Commission denial and urging scale down of the project. Letter dated May 5, 2008, from (intelligible) requesting scale down of the project to preserve livability for families and decrease devastating traffic impacts. Letter dated May 5, 2008, from Kay, no last name or city of residence given, supporting Planning Commission denial of the project. Letter dated May 1, 2008, from Sabrina Jansen, City resident, supporting the project due to its establishment of a bike trail and generation of property tax dollars to stabilize the City's budget and avoid cuts in City services. Letter dated April 30, 2008, from Fouad EI -Abd, City resident, urging approval of the project to enable him to buy business property in the City as well as increase general property tax dollars for the City's budget. Letter dated April 30, 2008, from David Buckanavage, City resident, supporting the project as a good balance between growth and environmental protection. Letter dated March 31, 2008, from S. Glenn Eichler, City business owner, supporting the project as an appropriate use and quality architectural design for the site. Letter dated May 1, 2008, from Angelo Theodossis, City business owner, supporting the project as it will bring new business to support existing businesses. Letter dated April 30, 2008, from Gregory Call, no city of residence given, supporting the project as proposed and endorsing the bicycle trails. Letter dated May 5, 2008, from Eileen Rehler no city of residence given, urging Council to uphold the Planning Commission denial of the project. Letter dated May 5, 2008, from Jess Andrews, no city of residence given, opposed to the project due to its massing. 7 5-06-2008 Letter dated April 3, 2008, from Dave Robinson, City resident, supporting the project due to its donation of open space, potential tax revenue generation, and potential business ownership. Letter dated April 7, 2008, from Joseph Woodka, Grub & Ellis, Newport Beach, CA, supporting the project to increase leasing options for businesses. Letter dated April 7, 2008, from Greg Puccinelli, Grub & Ellis, Newport Beach, urging support for the project to increase opportunities for businesses to own their work space. Letter dated April 7, 2008, from Scott Johnstone, Grub & Ellis, Newport Beach, supporting the project to allow for small business ownership opportunities. Letter dated May 5, 2008, from Chris Lamont, City resident, urging Council support the Planning Commission denial of the project. Letter dated May 5, 2008, from Mary Kelly, City resident, supporting project denial as a show of support for the City. Letter dated April 29, 2008, from John F. Moody, Laguna Niguel resident, supporting the project to allow business people to locate their businesses closer to their homes. Letter dated May 1, 2008, from Brad Kenson, City resident, supporting the project for the required traffic improvements and support of infrastructure. Letter dated May 5, 2008, from Kim Lefner, City resident, with petition signed by 242 residents (unverified) opposing approval of the business park and urging Council uphold Planning Commission denial. Letter dated May 5, 2008, from Katherine Holman, Ortega Equestrian Center, supporting the location of the project's equestrian trail and suggesting relocation of the split rail fence to the south side of the trail. Letter dated May 5, 2008, from Sally Bumbulis, City resident, strongly urging Council to support the Planning Commission denial of the project. Letter dated Yvonne Tschaikowsky, City resident, urging denial of the project based on increased traffic and urging revision to a more balanced project to preserve the quality of life for residents. Presentations: Grant Taylor, Assistant Planning Director, summarized the staff report. 8 5-06-2008 George Peterson, Centra Realty, representing the applicant, narrated a slide presentation indicating project components, consistency with applicable regulations, and general overview. He suggested modifications to conditions of approval 51, 58, and 74B. Following extensive public testimony and Council discussion, he agreed to project revisions in the spirit of compromise. William Devine, Allen Matkins Leck Gamble Mallory & Natsis, LLP, provided rebuttal to the findings cited by the Planning Commission in its denial of the project, and evidence to support project approval. Noting the public hearing remained open from the previous meeting, Mayor Soto invited testimony. Public Testimony: Yvonne Tschaikowsky, City resident, referenced a petition submitted in opposition to the project urging balance between project density to benefit the developer, potential development fees and tax revenues to benefit the City, and quality of life preservation for the sake of residents. She urged Council to uphold the Planning Commission denial and direct the developer to reduce project density. Vicky Kelly submitted a request to speak form but was not in chambers when her name was called. Robert Mayfield, City resident, urged approval of the project as it complies with all applicable regulations and denial may open the City to litigation. Scott Johnstone submitted a request to speak form but was not in chambers when his name was called. Glen Eichler submitted a request to speak form but was not in chambers when his name was called. Trevor ©ale, City resident, supported upholding the Planning Commission denial of the project due to increased traffic, and supported reducing project density. Larry Thomas, San Clemente resident and Independence Bank at Marbella Plaza representative, supported the project as a compromise that should be acceptable to all involved parties. Kim Lefner, City resident, opposed the project as presented by the developer and supported the reduced intensity alternative in the FEIR in order to decrease traffic impacts and decrease proposed density. She established with Omar Sandoval, City Attorney, that it was necessary for the Planning Commission to approve the FEIR before they could act to deny the project. 9 5-06-2008 Eric Altman, Irvine resident and Chamber of Commerce representative, was ambivalent about the project and suggested staff and the Chamber work together to improve the City's intimidating approval process. Kim McCarthy, City resident, opposed the project due to increased traffic generation, negative aesthetic impacts on the adjacent creek, and negative impacts on property values in the area. Christopher Kin, City resident, opposed the project due to its massing, potential negative traffic impacts, and potential to cause loss of village character and culture. Daniel Friess, City resident, supported the project as a good balance between urbanization and village character retention; and for the benefits the project will provide for residents. Don Tryon, City resident, supported the project as an asset for the City's residents, featuring quality design, increased sales tax revenues, and additional job opportunities. Gail Zukow, City resident, representing the Parks, Recreation and Equestrian Commission, provided explanation concerning split rail fencing location. Grant -- Taylor, Assistant Planning Director, advised there are several workable fencing location options, including fencing in tandem to both protect horses from vehicles and prevent horses from slipping down the slope. Ginny Kerr, representing the Planning Commission, reported Commission support for the use and type of project but recommended reduced density; and supported revision of the approval process. Laura Freese, City resident, requested significant density reduction. Mayor Soto closed the public hearing. Council Comment: Council Member Uso acknowledged the project's compliance with the General Plan, but felt that adherence to the General Plan, which was envisioned 30 years ago, may not be appropriate 30 years later. He endorsed several components of the project, including small business ownership, rich landscaping, and quality architectural design and construction, but supported the environmental superior option identified in the FEIR due to its decreased density. He would support a deed restriction to restrict the percentage of office uses allowed on site to 35%. 10 5-06-2008 Mayor pro tem Nielsen felt the location is appropriate for the proposed use and endorsed the quality development standards; agreed with some of the Planning Commission findings to deny the project; questioned the project's compliance with City policies; and supported the environmentally superior option identified in the FEIR. He would support a reduced density project that included greater setbacks and reconfiguratio nlreduction of buildings on site to reduce traffic and density as well as address concerns expressed by residents. Council Member Hribar supported this project for this specific location; felt the proposed use was much superior to high density residential or apartments; and noted changes in working habits over the past years has increased employee flexibility and decreased peak hour traffic congestion. He suggested building reduction/removal to decrease density, add parking, and increase setbacks from the freeway; removal of one unit from Building 1 to increase the landscaped area to provide more aesthetic appeal; and design consistency with all points of entry. Council Member Allevato felt it unfair to redesign the project from the dais after the applicants have designed the project in compliance with all applicable standards, provided the required amenities, and met with staff many times throughout the process. He commented that the project as designed placed density where it will be the least noticed, and increased open space to get the best benefit. Council has a fiduciary responsibility to allow development proposed in a sensible way according to established development codes and standards. He respectfully disagreed with the Planning Commission's assessment of the project and supported the project as revised through the approval process and presented this evening. Mayor Soto found the project consistent with the General Plan guidelines including density standards and Title 9 provisions. Council Actions: Moved by Council Member Uso to approve the project with a deed restriction specifying 35% office and 65% industrial uses. Omar Sandoval, City Attorney, cautioned that the addition of a deed restriction may affect certification of the FEIR. Council Member Uso's motion died for lack of a second. Moved by Council Member Hribar, seconded by Mayor Soto, and carried 3-2, with Mayor pro tem Nielsen and Council Member Uso opposed, to adopt Resolution No. 08-05-06-03, entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, CERTIFYING THE FINAL ENVIRONMENTAL IMPACT REPORT TO INCLUDE RESPONSES TO COMMENTS, STATEMENTS OF FINDINGS OF FACT, AND MITIGATION MONITORING AND REPORTING PROGRAM FOR THE VENTANAS 11 5-06-2008 INDUSTRIAL PARK PROJECT (CENTRA REALTY);" Resolution No. 08-05-06- 04 entitled "A RESOLUTION OF THE CITY COUNCIL, OVERTURNING THE DECISION OF THE PLANNING COMMISSION OF THE CITY OF SAN JUAN CAPISTRANO TO DENY PLANNING COMMISSION ZONING ENTITLEMENTS FOR THE VENTANAS INDUSTRIAL PARK PROJECT AT ASSESSOR PARCEL NUMBERS 666-131-09, 013,14,15 & 16 LOCATED AT THE WEST TERMINUS OF CALLE ARROYO BORDERING INTERSTATE 1-5 TO THE WEST AND SAN JUAN CREEK TO THE SOUTH IN THE PC (PLANNED COMMUNITY) ZONE SUBJECT TO COMPREHENSIVE DEVELOPMENT PLAN 78-01, ORTEGA PLANNED COMMUNITY WITHIN PLANNING SECTORS "B" AND "C" (CENTRA REALTY);" and Resolution No. 08-05-06-05, entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA APPROVING THE VENTANAS INDUSTRIAL PARK PROJECT INCLUDING ZONING ENTITLEMENT APPLICATIONS FOR TENTATIVE PARCEL MAP (TPM) 07-002, FLOODPLAIN LAND USE PERMIT, LOT LINE ADJUSTMENT/EASEMENT, PUBLIC RIGHT-OF-WAY VACATION, LICENSE AGREEMENT, AND SHAREDMOINT USE PARKING AGREEMENT ON PROPERTY LOCATED AT ASSESSOR PARCEL NUMBERS 666-131-09, 013,014,015 & 016 LOCATED AT THE WEST TERMINUS OF CALLE ARROYO BORDERING INTERSTATE 1-5 TO THE WEST AND SAN JUAN CREEK TO THE SOUTH IN THE PC (PLANNED COMMUNITY) ZONE SUBJECT TO COMPREHENSIVE DEVELOPMENT PLAN 78-01, ORTEGA PLANNED COMMUNITY WITHIN PLANNING SECTORS "B" AND "C" (CENTRA REALTY)," including project revisions to include removal of Unit 1-A from Building 1, reducing Building 9 by approximately 18 feet on both levels to align with Building 10, which results in addition of approximately 25 parking spaces; and revision of Conditions of Approval - Condition 51 (related to Property Owners Association) "... Association. Prior to the issuance of the first Certification of Completion or Certificate of Occupancy provide written documentation... (including the future replacement of the scour wall with a reserve life of 75 years) shall..." revised Condition 58 (related to Recreation Trail Improvements) "...rail fence shall be installed the length of the property on the rear of the landscape area adjacent to the bike path. The developer or its successor shall retain responsibility... ", ROLL CALL AYES: COUNCIL MEMBERS: Allevato, Hribar, Mayor Soto NOES: COUNCIL MEMBERS: Nielsen, Uso ABSTAIN: COUNCIL MEMBERS: None 12 5-06-2008 2. CONSIDERATION OF CODE AMENDMENT (CA) 07-02, TITLE 9 AMENDMENT TO THE SAN JUAN CAPISTRANO MUNICIPAL CODE (TITLE 9), PERTAINING TO ZONING PROCEDURES, ADMINISTRATION AND DEFINITIONS, INCLUDING THREE CHAPTERS OF THE LAND USE CODE AND DEFINITIONS, SECTION 9-1.101 THROUGH 9-2.401 (GENERAL PROCEDURES — ADMINISTRATION); SECTION 9-4.101 THROUGH 9.4.405 (SUBDIVISIONS AND APPENDIX A) (DEFINITIONS) CONTINUED TO MAY 20, 2008. (420.30) Council Action: Moved by Mayor pro tem Nielsen, seconded by Council Member Uso and carried unanimously, 5-0, to continue Consideration of Code Amendment (CA) 07-02, Title 9 Amendment to the San Juan Capistrano Municipal Code (Title 9), Pertaining to Zoning Procedures, Administration and Definitions to the regular meeting of May 20, 2008. 3. CONSIDERATION OF AN UPDATE TO THE CITY'S SCHEDULE OF FEES AND CHARGES FOR CITY SERVICES CONTINUED TO MAY 14, 2008 AT 3:00 P.M. — CONTINUED FROM APRIL 1, 2008(390.10) Council Action: Moved by Mayor pro tem Nielsen, seconded by Mayor Soto, and carried unanimously, 5-0, to continue Consideration of an Update to the City's Schedule of Fees and Charges for City Services to May 14, 2008, at 3:00 p.m. RECESS AND RECONVENE The City Council recessed and reconvened their meeting to conduct the business of the San Juan Capistrano Community Redevelopment Agency meeting. ADMINISTRATIVE ITEMS G1. ADMINISTRATIVE SERVICES DIRECTOR a. LICENSE AGREEMENT EXTENSION FOR USE OF PORTION OF THE OLD FIRE STATION COMPLEX APPROVED WITH STAFF DIRECTED TO PROVIDE INTERIM REPORT. (MISSION HOSPITAL REGIONAL MEDICAL CENTER — MHRMC) (COMMUNITY HEALTH ENRICHMENT COLLABORATIVE — CHEC) (600.30) Description: On April 18, 2006, the City entered into an agreement with Mission Hospital for use of the Old Fire Station Complex, with an option to extend for two years, to operate the Community Health Enrichment Collaborative (CHEC), a neighborhood -based health and social services system to contribute to the physical, spiritual, emotional, and economic health of low income San Juan Capistrano residents. Staff is recommending revision to the agreement with respect to parking and attendee limits to address concerns expressed by 13 5-06-2008 neighboring residents; and a report from Police Services indicates no increase in crime in the neighborhood since inception of the program. Staff recommended Council approve an extension of the license agreement with Mission Hospital Regional Medical Center for a maximum of two years, with modifications, for continued reuse of the Old First Station Complex-Lacouague Building Room #1 in the amount of $4,740 per year. Written Communications: Report dated May 6, 2008, by Karen Crocker, Community Services Director. Supplemental Agenda Report dated May 6, 2008, by Karen Crocker, Community Services Director. Letter dated April 24, 2008, from Angela Duzich Rohde, City resident, opposed to the use at this location and opining the proposed use requires Conditional Use Permit consideration and approval. Letter dated April 28, 2008, from Keith Moore, Monarch Bay Associates, City business owner and Mission Hospital Foundation Director, urging approval of the use due to the values and benefits it provides the City. Letter dated April 24, 2008, from Sharon Holdt, City resident, requesting support of CHEC due to its history of meeting the physical, spiritual, emotional and economic needs of the low income community. Letter dated May 4, 2008, from Jane & Ed Lohrbach, no city of residence given, opposed to the use in a residential neighborhood. Letter dated May 2, 2008, from Patricia Ahearn, M.D., City resident, Mission Hospital Foundation Director, and City business owner, supporting CHEC for the benefits and values it brings to the community. Letter dated May 1, 2008, from Abbie Gail Weiser, City resident, opposed to the current location of the center in a residential neighborhood, and its contribution to the City's "sanctuary city" status. Letter dated May 5, 2008, from Laurie Seymour, City resident, opposed to the use due to negative neighborhood impacts. Petition received on May 6, 2008, with 175 signatures from residents (unverified), opposed to the CHEC license extension due to the use's negative impacts in residential neighborhoods. Phone call received May 5, 2008, from William Nunley, not a City resident, opposed to the license renewal. 14 5-06-2008 Presentations: Karen Crocker, Community Services Director, summarized the staff report. Peter Bastone, Mission Viejo Resident, CEO of Mission Hospital, representing the applicant, urged approval of the license extension to allow CHEC to continue to serve underserved members of the community. Public Comment: Angela Duzich, City resident, advocated CHEC acquiring a Conditional Use Permit (CUP) in order to operate out of this location. Omar Sandoval, City Attorney, advised no CUP was required in this instance because the subject use is an historic use for the property, and the City is under contract with the County to continue to provide community benefit uses from this location. Laurie Jacobson, City resident and CHEC volunteer, supported the use as a means to provide new mother mentoring services. Jorge Sotelo, San Clemente resident and CHEC volunteer, supported the use as a means to improve the quality of life for the City's low income residents. Tony Brown, City resident (Mission Hills/Flats), protested the use going in without neighborhood input; and opposed extension due to negative neighborhood impacts, increase in crime, and service to illegal aliens. Karen Crocker, Community Services Director, advised that residents were notified via the required notification process. Alan Vargas & Jose Villa, Marco Forster Junior High School students, discussed the benefits of CHEC CSP Leadership Program at their school and community events the teens have participated in; and urged CHEC license renewal to allow the leadership program to continue. Vaughn Becht, Westminster resident, recited the Country's Oath of Citizenship and opined that the City is not responsible for the health and welfare of illegal residents. Sharon Holdt, City resident and Chair of South Orange County Community Services, commended the City for supporting CHEC as a needed resource for City families. Cheryl Burns, City resident and Minutemen Project Member, opposed the use as it provides for illegal aliens; and suggested an unnamed Council Member should recuse himself from considering this item due to his ties and support of the Hispanic community. 15 5-08-2008 Carrie Bertini, CUSD principal, listed the benefits CHEC has provided to Marco Forster Junior High School students; and supported the license renewal to allow CHEC to continue to support the health, welfare, and education of area children. Chris Lobo, City resident and Juaneno Band of Mission Indians elected representative, supported the use due to positive impacts on the community; and noted that Navid Rastin, the Boys & Girls Club of Capistrano Valley's 2007 Youth of the Year, was a participant in the junior high's leadership program. Dave Norman, City resident, (Mission Hills/Flats), questioned staffs estimate of the number of people helped at the center and the report provided by Police Services indicating no increase in crimes committed; described negative impacts he has experienced; and questioned Mission Hospital's status on "non profit" when its fees for services are so high. Patricia Ahern, M.D., City resident, CHEC supporter, and Mission Hospital Foundation Boardmember, supported the request to allow CHEC to continue to serve the community; and opined that immigration status issues were beyond the scope of the City's purview. Edie Fee, City resident and former chair of Mission Hospital Foundation, noted the hospital's needs assessment indicated significant need for this service within the City; and urged approval of the request to allow the much needed service to continue. Marsha Norman, City resident, opposed the use because it provides services for illegal immigrants; and suggested the City use its limited funds to provide services for legal residents. Alba Gomez, City resident and CHEC volunteer, supported the use to provide much needed services for the City's low income residents. Kim McCarthy, City resident, opposed continuation of the use due to the negative impacts to communities, schools, and neighborhoods caused by illegal immigrants; and requested Council form a committee to further address illegal immigration in the community. Ed Connor, City resident and CREER Boardmember, supported the license renewal so that CHEC can continue to uphold the community values established by Father Junipero Serra, provide services for residents no matter their immigration status, and listed benefits provided by immigrants to this country. Melida Guitierez, CHEC volunteer, supported the use and submitted a petition signed by 500 community members (unverified) in support of the use. 16 5-06-2008 Patrick Crowley, City resident strongly opposed the use; listed negative impacts to the (Mission Hills/Flats) neighborhood as a result of the use; suggested Mayor Soto's view was prejudicial based on his support of the Hispanic community; and requested additional limitations in the Agreement if the license extension is approved. Emma Elhzalde, City resident and CHEC volunteer, urged Council support the continued use of the facility by CHEC for humanitarian reasons. Eric Altman, Chamber of Commerce president, was ambivalent toward this use and its location; and asked that increase crime in the downtown area be addressed in the near future. Orrie Brown, City resident (Mission Hills/Flats), opposed the use because it conflicts with surrounding residential uses; nearby residents were not allowed to provide input before the use was relocated there; none of the center's clients are (Mission Hills/Flats) residents; the City's partnership with CHEC and the Catholic Church to provide this use violates the separation of Church and State Amendment; and questioned Mayor Soto's ability to be impartial given his Hispanic community involvement. Cindy Mueller, City resident and Mission Hospital employee, supported extension of the use to serve the common good in the community and improve the quality of life for families and community members. Sister Martha Ann Fitzpatrick, Dana Point resident and Mission Hospital employee, supported extension of the use to allow CHEC to continue to help people live healthier lives, respect every life as sacred, and provide direct access to families in need. Council Comment: Mayor Soto acknowledged his involvement in many community organizations, including CREER, Boys and Girls Club, San Juan Capistrano Mission Parish, Rotary Club, Viking Club, and Library Advocacy Board. He commended the City for being a "sanctuary" for young people, seniors, churches, both public and private schools, etc. He met with area residents and is uncertain how to reconcile their complaints about negative impacts with the contradictory evidence presented by staff, and is troubled by the appearance that CHEC has been singled out from the array of other uses provided at the site. He supports CHEC as a much needed resource for the entire community. Council Member Uso provided personal details, including his birth in Mexico, immigration to the United States as a child, and eventual naturalization. He does not see this use as helping illegal immigrants as much as the responsibility of a community to provide outreach to its less fortunate residents. He pledged to 17 5-06-2008 support the neighbors with actions to counter any negative impacts in their community, noted revisions in the agreement to address the neighbors' complaints, and acknowledged the City's responsibility to revoke the agreement if the license provisions are not upheld. Council Member Allevato acknowledged the importance of providing support services, respect, and human kindness to those less fortunate and assured impacted residents of the City's responsibility to make sure impacts are controlled and minimized to ensure their home values and quality of life are not negatively impacted. He felt that control of illegal immigration is a Federal issue that cannot be solved by cities; praised the CSP leadership program for its support of all youth regardless of their immigration status; noted the importance of prevention programs to encourage community involvement and discourage gang membership; and stated the City's support of many non-profit community support groups at this and other facilities throughout town. He stressed that many community organizations provide much more benefit than the City provides in support to them and questioned the motives of those attacking the site due to its clientele. Mayor pro tem Nielsen established the facility's deed restriction requiring dedicated community uses, treatment of CHEC consistent with any and all other non-profit organizations using the site, and deed requirement that if the City sold the property, 80% of the proceeds would have to be forwarded to the County. He felt the CHEC use is a benefit to the entire community regardless of their immigration status, which is an issue beyond the City's scope. He pledged to address any negative impacts the neighborhood experiences and recommended Council direct staff to come back in 6 months with a report detailing impacts. He acknowledged the lack of sites in the City that can accommodate this use, which provides a tremendous benefit to the entire community. Council Member Hribar noted his agreement with Council remarks; challenged CHEC to reduce its operations at the site in order to reduce impacts to the neighborhood; and pointed out license provisions that allow either party to terminate the use if needed. He acknowledged the deficiency of recreational resources in the north area of town for its Hispanic residents; referred to future benefits, including an abundance of picnic tables this Council approved, in conflict with the Planning Commission recommendation for the forthcoming Los Rios Park; and noted the potential for additional recreational facilities in the North West Open Space. Council Action: Moved by Council Member Hribar, seconded by Mayor Soto and carried unanimously, 5-0 to approve the License Agreement with Mission Hospital Regional Medical Center for use of portion of the Old Fire Station Complex, Lacouague Building Room #1, in the amount of $4,740 annually, for a maximum of two years,; and direct staff to return to Council in six months with a use and impacts report for the Old Fire Station complex. 18 5-06-2008 G2. PLANNING DIRECTOR a. RESOLUTION NO. 08-05-06-06 ADOPTED INITIATING CONSIDERATION OF THE GENERAL PLAN AMENDMENT FOR THE PROPOSED DISTRITO LA NOVIA-SAN JUAN MEADOWS PROJECT. (ADVANCED REAL ESTATE SERVICES) (440.25) Description: On September 18, 2007, Council initiated the General Plan study process for the Distrito La Novia project as envisioned by the applicant at that time. As a result of the Distrito La Novia Subcommittee review and Council's February 19, 2008, action to accept the subcommittee's recommendation for an alternative development concept, the project has been substantially revised to include the San Juan Meadows site, necessitating re-initiation of the General Plan Amendment study process to include the Distrito La Novia and San Juan Meadows sites. Staff recommended Council adopt a resolution initiating consideration of the General Plan Amendment for the proposed Distrito La Novia-San Juan Meadows project. Written Communications: Report dated May 6, 2008, by Bill Ramsey, Principal Planner. Presentation: Bill Ramsey, Principal Planner, summarized the staff report. Council Action: Moved by Council Member Allevato, seconded by Mayor pro tem Nielsen and carried unanimously, 5-0, to adopt Resolution No. 08-05-06-06, entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, INITIATING CONSIDERATION OF A GENERAL PLAN AMENDMENT FOR THE DISTRITO LA NOVIA AND SAN JUAN MEADOWS PROJECT LOCATED AT SAN JUAN CREEK ROAD, VALLE ROAD, AND LA NOVIA AVENUE (GPA 07-001)." G3. CITY MANAGER a. RESOLUTION NO. 08-05-06-07 ADOPTED APPROVING THE COMMUNITY REDEVELOPMENT AGENCY'S ISSUANCE OF 2008 TAX ALLOCATION BONDS. (340.40) Description: Council must adopt a resolution approving the issuance of bonds and other related actions in order to access the Redevelopment Agency's 2008 Tax Allocation Bonds which will be used to finance redevelopment activity within the Central Redevelopment Project area. Staff recommended Council adopt a resolution approving the Redevelopment Agency's Issuance of 2008 Tax Allocation Bonds consisting of tax exempt Series A Bonds and subordinate taxable Series B Bonds (housing) not to exceed Twenty One Million Dollars ($21 M) and authorizing officers and agents of the City to consummate the sale of the Bonds. 19 5-06-2008 Written Communications: Report dated May 6, 2008, by Douglas Dumhart, Economic Development Manager. Presentation: Cindy Russell, Assistant City Manager, summarized the staff report. Council Action: Moved by Council Member Hribar, seconded by Council Member Allevato and carried unanimously, 5-0 to adopt Resolution No. 08-05- 06-07 entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, APPROVING THE ISSUANCE OF SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY SAN JUAN CAPISTRANO CENTRAL REDEVELOPMENT PROJECT 2008 TAX ALLOCATION BONDS IN AN AMOUNT NOT TO EXCEED TWENTY-ONE MILLION DOLLARS ($21,000,000) CONSISTING OF TAX EXEMPT SERIES A BONDS AND SUBORDINATE TAXABLE SERIES B BONDS (HOUSING) AND MAKING CERTAIN DETERMINATIONS RELATING THERETO." b. PARKING LICENSE AND USE AGREEMENT FOR ASSESSORS PARCEL NUMBER 666-131-08, BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND LBITIRADOR, LLC (VENTANAS) APPROVED WITH REVISIONS. (600.30) Description: Approval of the Parking License and Use Agreement will allow the improvement of a 3/ acre parcel owned by the City in connection with the development of the Ventanas Business Center which will allow the developer to make improvements and allow access, use and maintenance of the improvements. Staff recommended Council approve the Parking License and Use Agreement for Assessors Parcel Number 666-131-08, Located at 27122 Paseo Tirador, between the City of San Juan Capistrano and LB/Centra Tirador, LLC Parking License and Use Agreement for Assessors Parcel Number 666-131- 08, located at 27122 Paseo Tirador, between the City of San Juan Capistrano and LB/Centra Tirador, LLC and authorize the Mayor to execute the agreement. Written Communications: Report dated May 6, 2008, by Douglas Dumhart, Economic Development Manager. Presentation: Douglas Dumhart, Economic Development Manager, summarized the staff report. Mayor pro tem Nielsen suggested revisions to the Agreement with respect to annual fee and appraisal provisions. Council Action: Moved by Mayor pro tem Nielsen, seconded by Council Member Hribar and carried unanimously, 5-0, to approve Parking License and Use Agreement for Assessors Parcel Number 666131-08, located at 27122 Paseo Tirador, between the City of San Juan Capistrano and LB/Centra Tirador, 20 5-06-2008 LLC with annual license fee at $6,450; property to be re -appraised prior to sale; and authorize the Mayor to execute the agreement. G4. PUBLIC WORKS DIRECTOR a. AMENDMENT NO. 1 TO PERSONAL SERVICES AGREEMENT CONCERNING MTBE TESTING AND REMEDIATION BY CHEVRON AND APPROPRIATIONS OF FUNDS APPROVED. (PSOMAS) (600.30) Description: Staff recommended the continued use of PSOMAS for additional work related to providing oversight review and evaluation of MTBE testing work by chevron for the second year of this project. Staff recommended Council approve Amendment No. 1 to the Personal Services Agreement with PSOMAS for additional work related to the oversight review and evaluation of MTBE testing and remediation by Chevron; and appropriate an additional $98,500 from the Water Operations Fuad reserves into account 50-62139-4460. Written Communications: Report dated May 6, 2008, by Eric Bauman, Water Engineering Manager. Presentation: Cindy Russell, Assistant City Manager, summarized the staff report. Mayor pro tem Nielsen suggested monthly written and oral reports from Chevron and quarterly written and oral reports from PSOMAS and established the necessity of PSOMAS representation whenever reports from Chevron are received by Council. Council Action: Moved by Mayor pro tem Nielsen, seconded by Council Member Uso and carried unanimously, 5-0, to approve Amendment No. 1 to Personal Services Agreement with PSOMAS for additional work related to the oversight review and evaluation of MTBE testing and remediation by Chevron, with staff directed to seek monthly oral reports from Chevron and monthly written reports with quarterly oral reports from PSOMAS; and appropriation of an additional $98,500 from the Water Operations Fund reserves into account 50- 62139-4460. b. PERSONAL SERVICES AGREEMENT WITH HALEY & ALDRICH INC., TO EVALUATE AND REMOVE THREE UNDERGROUND STORAGE TANKS AT KINOSHITA FARMS APPROVED. (600.301330.20) Description: Following testing positive for Methyl Tertiary -Butyl Ether (MTBE) in January 2008, the Kinoshita well was turned off. Further research by PSOMAS found references to two and possibly a third abandoned fuel storage tanks on the Kinoshita farm site which may contain MTBE. PSOMAS solicited and received two proposals from firms qualified to evaluate and remove the tanks, and is recommending selection of Haley & Aldrich, inc. Staff recommended Council 21 5-06-2008 approve a Personal Services Agreement with Haley & Aldrich Inc to evaluate and remove underground storage tanks at Kinoshita Farms; and appropriate $28,800 from the Water Operations Fund reserves for this work. Written Communications: Report dated May 6, 2008, from Eric Bauman, Water Engineering Manager. Presentation: Cindy Russell, Assistant City Manager, summarized the staff report. Mayor pro tern Nielsen suggested additional language to explicitly include MTBE testing. Council Action: Moved by Mayor pro tem Nielsen, seconded by Council Member Uso and carried unanimously, 5-0, to approve Personal services agreement with Haley & Aldrich Inc., for $28,800 to evaluate and remove three underground storage tanks at Kinoshita Farms, including MTBE testing; and appropriate $28,800 from the Water Operations Fund reserves for this work. C. AGENCY PARTICIPATION AGREEMENT TO EXPLORE THE FEASIBILITY OF AN OCEAN DESALINIZATION PLANT APPROVED. (600.501330.20) Description: Recent events have brought into question the guarantee of water from Metropolitan Water District of Southern California (MET). If MET eventually has to reduce the City's allocation, the City would need to develop other sources or do without. Following Municipal Water District of Orange County (MWDOC) predevelopment work of an Ocean Desalination Project (ODP) indicating project viability, interested agencies are entering into an Agency Participation Agreement (APA) to explore the technical feasibility, determine the performance and define the costs of an ODP. The APA currently allows each participant an equal share in voting rights and requires each participant pay an equal share of the project costs to date. Costs for the City at this point, as the fourth participant, would be $236,000 for participation up to off ramp 1, decrease if additional participants join in, and, if the City continues to participate, increase as the project progresses. The APA has been reviewed and revised by the Water Advisory Commission, and recommended for approval on a 4-0 vote. Staff recommended Council approve the Agency Participation Agreement with MWDOC, SCWD, LBCWD, and MNWD in the exploration of,feasibility, cost, benefits, and need for development of domestic water supply from an ocean water desalinization plant; allocate $236,000 from the capital reserve fund for this project and include project as a new Capital Improvement Project for Fiscal Year 2007-08; select a delegate and alternate from the City Council and one staff member to represent the City in the Project Participation Committee; and authorize the City Manager to execute the final version of the agreement substantially in conformance with the attached version. 22 5-06-2008 Written Communications: Report dated May 6, 2008, by Eric Bauman, Water Engineering Manager. Presentation: Cindy Russell, Assistant City Manager, summarized the staff report. She noted Karl Seckel, representing MWDOC, was present and available for questions. Council Action: Moved by Council Member Allevato, seconded by Mayor Soto and carried unanimously, 5-0, to approve the Agency Participation Agreement with MWDOC, SCWD, LBCWD, and MNWD in the exploration of feasibility, cost, benefits, and need for development of domestic water supply from an ocean water desalinization plant; allocate $236,000 from the capital reserve fund for this project and include project as a new Capital Improvement Project for Fiscal Year 2007-08; select Council Member Hribar as a delegate, and Mayor Soto as an alternate to represent the City in the Project Participation Committee; and authorize the City Manager to execute the final version of the agreement substantially in conformance with the attached version. ORDINANCES - None COUNCILMANIC ITEMS - None ADJOURNMENT There being no further business, Mayor Soto adjourned the meeting on Wednesday, May 7, 2008, at 2:04 a.m. to Tuesday, May 14, 2008 at 3:00 p.m. for a budget workshop meg and o the regular meeting of Tuesday, May 20, 2008 at 5:30 p.m. for Closed Sessio a9d, 30 p.m. for the Public Business Session in the City Council Chamber. Respeubmitted, CLE Approved: June 17,