HomeMy WebLinkAbout2015-06-25 Development & TransportationCITY COUNCIL COMMITTEE ON
DEVELOPMENT AND TRANSPORTATION
Special Meeting Minutes
June 25, 2015
CALL TO ORDER
The meeting was called to order at 5:01 p.m. in Room 1600 of the City Hall Ross Annex.
ATTENDANCE
The following Committee Members were present: Vincent Sarmiento, Michele Martinez,
David Benavides
Staff present were: David Cavazos, City Manager; Kelly Reenders, Executive Director/
Community Development Agency; Fred Mousavipour, Executive Director/Public Works
Agency; Hassan Haghani, Executive Director/Planning & Building Agency; Lisa Storck,
Assistant City Attorney; Ryan Hodge, Assistant City Attorney; William Galvez, City
Engineer; Nabil Saba, Water Resources Manager; Jason Gabriel, Principal Civil Engineer;
Kenny Nguyen, Senior Civil Engineer; Melanie McCann, Associate Planner; Lorrie Ortiz,
PWA Executive Secretary.
PUBLIC COMMENTS
Madeleine Spencer summarized a letter that had been previously distributed concerning the
Warner Avenue Improvement project, requesting a delay to include residents, and asking
the City to increase the scope of the project and assure an inclusive process, specifically to
include a resident right-of-way panel that is equal to the number of city staff.
Robert Duncan, Caribou Industries, referenced agenda Item 3, Third Street Promenade;
highlighted a few items that were previously submitted; showed a proposed development
and a revised aerial photo of a development on Third Street, and two adjacent properties to
be acquired. He stated that a hotel is being proposed and that all opportunities are being
explored; a meeting is planned with a partner that specializes in affordable housing.
AGENDA ITEMS
Items taken out of order to accommodate schedules
HOUSING OPPORTUNITY ORDINANCE
The City Manager provided Committee members with information concerning
adaptive re -use, and recommended a moratorium of new projects; noting that it
would be best to also place a moratorium on the Housing Opportunities Ordinance.
He advised that authority exists to waive and clarify development fees.
The Executive Director of Planning & Building, Hassan Haghani, summarized
components of the Housing Opportunities Ordinance that was adopted in 2011, and
referenced in the 2014 Housing Element; which requires 15 percent of new housing
to be affordable; and applies to zone changes that result in residential density
increases. He stated his concern that the ordinance may constrain historic adaptive
re -use of buildings and alternatives to construction; and treats new and existing
development the same even when economics may vary, which may be an
impediment to developers in considering affordable housing. The ordinance does not
currently provide options to provide affordable housing units instead of in lieu fees,
and limits alternatives that may be considered. Possible modifications were provided
in the presentation, including exemptions to projects approved prior to the adoption
of the original ordinance; exempt adaptive re -use from the ordinance requirement;
provide for off-site construction of units; allow rehabilitation of off-site units; remove
Takings Determination; apply the ordinance only to those conversions that exceed
the density permitted in the General Plan; allow an in -lieu fee option up to 50 units
instead of the current 20 units; simplify the in -lieu fee calculation to $5 per square
foot; and re-evaluation of the matter in 3 years. He clarified potential options
including modification of the existing ordinance; or a short moratorium to prepare
another ordinance and establish an interim ordinance; or do nothing.
Councilmember Benavides noted that quality, accessible and mixed income housing
is important, and appreciates staff's efforts to modify issues. He suggested
incentives to developers that propose mixed income developments. Councilmember
Martinez called attention to the county's changing demographics and that people are
leaving due to transportation and housing affordability; and specified that the needs
of the community must be taken into consideration. Mayor Pro Tem Sarmiento
clarified that inquiries from the community are always welcome, noting that the city
has a responsibility to residents and also to developers to ensure that working
families have a dignified way to live, considering the high housing costs throughout
the county. He recommended revisiting the matter within 24 months; summarized
that consistency in development fees is important; commented that the goal is
quality market rate developments; and that other cities direct their developers' in -lieu
funds to projects that are set aside for affordable housing; and he requested that a
future report to the City Council include a comparison table of other local cities. This
item is scheduled to go before City Council on August 4, 2015.
3. THIRD & BROADWAY UPDATE
The City Manager provided a high level overview of the project, and he said there
were several submissions for this project. Oliver McMillan was invited back to
provide their background and experience, but were not interested in providing a hotel
component beyond their residential proposal with ground floor retail; and the firm
recommended a hotel feasibility study. Direction is currently sought from Committee
members, as the only proposal to include a hotel proposal was from Caribou
Industries per Mr. Duncan's earlier comments.
Mayor Pro Tem Sarmiento noted the Request for Qualifications (RFQ) was
circulated for a 2nd time; and Larry Kosmont's office was sought to assist with this
matter, although the meeting notification was late and the firm was not able to attend
this meeting. He reiterated that Caribou Industries was the only submission that
included a hotel component pursuant to the RFQ. He recommended that discussions
for refinement, terms and conditions proceed with Caribou Industries; and that Larry
Kosmont and other possible developers be consulted with a very short timeframe.
Development & Transportation Council Committee Minutes 2 June 25, 2015
Councilmember Benavides commented this has been a prime potential project for
several years due to its location at 3rd and Broadway, and yet another delay would
not be favorable; that the project should only be delayed further if no submissions
are acceptable; but noted that high quality standards are important because this can
be a legacy project to be looked upon with pride for many years; and that business -
friendly assistance should be offered for this development. Councilmember Martinez
emphasized that community members be included as stakeholders since the project
is a city asset which belongs to the voters and residents; explained that place
making is important; that this should be a multi -modal transit oriented development;
and should also include open space so that the community may congregate
outdoors. Councilmember Martinez recommended that developers review the 5 year
Housing Element and types of housing stock to meet the goals within the Housing
Element; that another important issue is the opportunity to be a destination both for
entertainment and visitors to the courts, and a hotel with a multi -use conference
room can be successful. She emphasized that time is of the essence, so the
opportunity is not lost; and stressed that an expedited 30 -day process be assembled
for developers, inclusive of Council's vision for the downtown area.
7. COMPLETE STREETS PLAN FOR DOWNTOWN UPDATE
Cory Wilkerson, Active Transportation Coordinator, provided information on the
status of the Active Transportation program. He stated that the downtown complete
streets plan had a very aggressive outreach process complete with a 3 -day
workshop and multiple community meetings which resulted in 5 top priority projects
for downtown and transit zone areas. Mr. Wilkerson added that after careful review
by staff, a final draft will be provided to the public to allow additional comments and
ultimate presentation to the City Council.
Councilmember Martinez summarized the process, and noted that much preliminary
effort through the years has been extended for the current result; a huge milestone
has been accomplished, and no residents have had negative comments to her
knowledge; encouraged close coordination with the Planning & Building Agency;
recommended that the final public product include the rationalization for the top five
projects that are selected by the community, and should also include those projects
that were not selected; and is looking forward to finalization of this project.
8. ACTIVE TRANSPORTATION PROGRAM UPDATE
William Galvez, City Engineer, summarized the status of the Active Transportation
Program (ATP). The ATP encompasses the circulation element and pedestrian and
bike master plan, and will also fold these programs into the pavement management
plan which will show the condition of City streets and financing thereof. He stated the
Safe Mobility Santa Ana (SMSA) program is studying all accidents involving
pedestrians and bicyclists in order to develop a plan to address the issues. The
Circulation Element and Active Transportation Program is now in draft form and on
hold pending the SMSA study, which should be released in approximately
September of this year. The Circulation Element should be complete by June 2016.
Councilmember Martinez requested further timing information due to safety and
circulation issues in the community. Fred Mousavipour, Executive Director of Public
Development & Transportation Council Committee Minutes 3 June 25, 2015
Works, explained that the SMSA, Circulation Element, and Pavement Management
programs will be studied concurrently in order to have a timely and comprehensive
program. Mr. Haghani emphasized that the principles provided from the Public
Works Agency will be included as a basis for the General Plan update, and City
Council will be advised accordingly. Mayor Pro Tem Sarmiento recommended
coordination with the school district on this issue to ensure best practices are
followed for the safety of children at every school campus in the city.
9. PRESENTATION: PROJECT W: SAFE TRANSIT STOPS — INPUT ON
TRANSIT STOP CONCEPTS
Mr. Galvez stated that the project to upgrade the city bus shelters was made
available through funding from OCTA Project W: Safe Transit Stops. Santa Ana was
awarded $687,000 for 29 highest volume transit stops in the city. An Environmental
and Transportation Advisory Committee ad hoc subcommittee reviewed the issue
and provided comments. Photos of sample bus shelters were provided by Mr.
Galvez, and staff's recommendation features a curved roof. Councilmember
Martinez noted that the needs of the community should be assessed before
determining the shelters; including the need for bike racks, trash dispensaries; a
digital concept which would include schedules; USB connections to charge cellular
phones; and more seating for bus riders. Mayor Pro Tem Sarmiento summarized
that more attention is given to the city's bus shelters because this community
actually uses public transportation. He also emphasized uniformity in the design of
the shelters, and he noted that the shelters should be resistant to graffiti. He noted
that bus shelters in Mexico and Latin America have very creative designs, which
may be possible in Santa Ana.
Omar De La Riva, resident, supported the need for bike racks in the bus shelters.
Madeleine Spencer commented that the bus shelters can be aesthetically pleasing,
fun and may serve as a tool to encourage use of public transit; and "cool" shelters
may be achieved in Santa Ana.
2. WARNER AVENUE IMPROVEMENTS UPDATE
Mr. Galvez provided a brief update on the Warner Avenue Improvements, providing
a fact sheet with current information and project location. The project was approved
in 2008. Photos of the location were shown, including photos of the areas with
safety, mobility and aesthetic issues. He provided the project objectives; benefits;
timeline; status; a description of the phases; and methods of public outreach starting
in 2012. One-on-one meetings will be held with residents to provide factual
information in the language and location of the resident/ property owner's choice.
Councilmember Martinez stated she is supportive of moving forward with the project,
but is concerned about the displacement of the businesses and property owners.
Mayor Pro Tem Sarmiento stated the project was initially brought about by the
impacts from the development of the Legacy Project in Tustin. More traffic is
expected on the street and action is needed. Residents will be treated fairly and
equitably, but there is a concern about speed on the street. He has received
comments that residents are concerned about the narrow sidewalks, difficult egress,
Development & Transportation Council Committee Minutes 4 June 25, 2015
volume of current traffic that has increased through the years, and safety in general.
He recommended not simply focusing on property owner rights, but also extend
sensitivity to the many neighborhood tenants.
Madeleine Spencer noted that residents did not really believe that the project would
actually occur; expressed resident and property owner apprehension due to issues
concerning fair market values; and ensuring there is dialogue with the community so
that residents and property owners can be part of the process.
5. PRESENTATION: DROUGHT WATER RATE SURCHARGE
Water Resources Manager Nabil Saba provided a summary of the city's drought
water rate surcharge and he reviewed available options. Option 1 would be a
surcharge of approximately $2.40, for an average residential water bill of
approximately $58.20; and, the addition of $1.88 to recover the penalty if the
reduction is not met; he also estimates loss of revenue in the amount of $4.4 million.
Option 2 is recommended by staff and would add a surcharge of $7.37 to customers
exceeding the allocation, with an average residential bill of approximately $63.17 per
month; and the addition of $1.88 to water use to recover the penalty. Option 3 would
recover revenue loss through adding a fixed surcharge of $11.16 on all water users
which would increase the monthly bill to an average of approximately $66.96 per
month; and the addition of $1.88 to recover the penalty.
Councilmember Martinez stated a preference for Option 2, and residents that exceed
allowed usage would need to pay accordingly. Mayor Pro Tem Sarmiento stated
that it appears that Option 2 would probably be preferred as the most viable option,
without the addition of costs for the recovery penalty at this time. Mr. Mousavipour
advised that penalties for violations of the Executive Order are uncertain, so the
option to assess the surcharge of $1.88 to residents is not being taken at this time;
he also added that exemptions are available to some businesses and residents with
special disabilities and circumstances; and added that Santa Ana is one of the first
cities to study and implement the Executive Order. Councilmember Martinez
emphasized that the City is also a water customer and should also be providing
records to demonstrate water reductions.
COMMITTEE MEMBER COMMENTS - None
FUTURE AGENDA ITEMS
Streetcar Project Update
Sewer Lines Ownership Ordinance Amendment
ADJOURNED — 7:20 P.M.
Lorr7J Ortiz
Recording Secretary
Public Works Agency
Development & Transportation Council Committee Minutes 5 June 25, 2015