CITY COUNCIL STAFF REPORT

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1 CITY COUNCIL STAFF REPORT TO: Honorable Mayor and City Council DATE: May 7, 2018 FROM: PREPARED BY: SUBJECT: Matthew Bronson, City Manager A. Rafael Castillo, AICP, Senior Planner Cassandra Mesa, Building / Planning Technician Development Application Request for a Development Permit and Tentative Parcel Map for a two unit, two-story Planned Unit Development located at 557 Manhattan Avenue (Applicant: Pace Homes, Inc.) RECOMMENDATION 1) Adopt the resolution approving Development Application 17-27, entitling a two unit Planned Unit Development and Tentative Parcel Map G at 557 Manhattan Avenue; and 2) Provide direction for staff to initiate a right-of-way abandonment based on options provided by staff. BACKGROUND The applicant is proposing the following for entitlement to create a two parcel subdivision consistent with the Planned Unit Development (PUD) section of the City s Development Code (reference Attachment 5): Proposed partial abandonment of right-of-way along Manhattan Avenue because the existing 6,875 square foot lot does not meet the minimum lot size for subdivision under the Development Code s PUD ordinance which requires a minimum of 3,500 square feet for each parcel; If the right-of-way abandonment is approved, it would allow for the subdivision of the existing lot into two parcels; Construction of two, two-story residences with a maximum height of 26-feet; Unit 1 (Parcel A) would include construction of a 1,175 square foot three bedroom, two bath residence including a roof-deck and attached two-car garage on a proposed parcel of 3,675 feet; Unit 2 (Parcel B) would include construction of a 1,430 square foot three bedroom, two bath residence with a balcony/deck on the second floor and an attached two-car garage on a proposed parcel of 3,500 square feet; On-site improvements include landscaping, on-site drainage, water and sewer connections, and other requirements to meet PUD standards; Public frontage improvements including the installation of curb, gutter, sidewalk, and the reconstruction of Manhattan Avenue to the centerline of the street consistent with the Development Code. Agenda Item No. 10

2 Staff Report: Development Application Manhattan Avenue Page 2 May 7, 2018 Right-of-Way Abandonment The applicant is proposing a partial right-of-way abandonment of Manhattan Avenue to meet the minimum subdivision standards for PUDs (Development Code Section 4.30). The applicant, in their submittal, requested the abandonment of 6-feet of street frontage along Manhattan Avenue. The City Engineer evaluated the proposal and is recommending a 5-foot abandonment to accommodate one foot of right-of-way behind the back of sidewalk to allow for City maintenance and other City uses. Staff has reviewed the Circulation Element of the General Plan and has determined that there is excess right-of-way available. Only 60 feet of right-of-way is necessary based on a curb to curb width of 46-feet with 6-foot sidewalks on each side and one additional foot behind the sidewalk to allow for City maintenance. Existing curb and sidewalks along Manhattan would not require relocation as a result of the proposed abandonment. The recommended five-feet is one foot less than the six-feet proposed by the applicant and would result in the proposed Parcel A of 3,675 square feet being reduced by approximately 50 square feet. This parcel size would still meet the minimum lot size established by the Development Code. Proposed Right-of-Way Abandonment 5 x 306 area proposed to be abandoned (1,530 square feet) The abandonment, if approved, would increase the parcel depth from feet to feet and increase the parcel size from 6,875 square feet to 7,125 square feet, allowing the minimum lot size of 3500 square feet for the two unit Planned Unit Development. If the street abandonment was not approved, the project would not meet the minimum lot size and could not be approved. The Council previously provided direction to staff that abandonments should be done for an entire block in order to maintain continuity rather than on a per-parcel basis. In March, the Council directed staff to initiate a right-of-way abandonment for three lots on the north side of Highland Way that had excess right-of-way. The remaining lots on the north side of Highland

3 Staff Report: Development Application Manhattan Avenue Page 3 May 7, 2018 Way between Huston Street and South 13 th Street do not have excess right-of-way, creating consistency with all the lots on the block. Prior to that direction, the last street abandonment approved by the Council occurred in 2009 for the Habitat for Humanity project located at the southeast corner of South 5 th Street and Long Branch Avenue. In that case, the Council abandoned the right-of-way for the entire block along both street frontages. Staff recommends that the City Council provide direction to initiate the right-of-way abandonment along Manhattan Avenue through the General Vacation procedure, as specified in the Streets and Highways Code. Staff has identified the following options for Council consideration: Option 1 Abandonment of the Entire 500 Block of Manhattan The applicant, utilizing a consultant, would prepare an instrument consistent with the California Streets and Highways Code and the California Subdivision Map Act to vacate excess right-ofway for all six lots on the north side of Manhattan Avenue (shown above). The abandonment would need to be completed prior to acceptance and recordation of a final map. If Council selects this option, staff would return to Council for final approval of the right-of-way abandonment. Option 2 Abandonment of project frontage for subject lot only Same as above, but the right-of-way abandonment would be completed only for the applicant s lot frontage of 50 feet. This action would create an inconsistent right-of-way width on the 500 block of Manhattan, which would contradict recent Council direction. Based on direction provided by Council, staff would return at a future Council meeting to initiate the right-of-way abandonment. A total of two meetings are required to abandon the right-of-way consistent with the California Streets and Highways code. Planning Commission Recommendation On April 11, 2018, the Planning Commission reviewed Development Application and recommended on a 5-0 vote that the City Council approve the proposed project with a right-ofway abandonment of 5-feet, consistent with the recommendation by the City Engineer. FISCAL IMPACT There is no fiscal impact to the City unless the Council elects to initiate/participate in the right-ofway abandonment. ALTERNATIVES The City Council has the following alternatives to consider: 1. Approve Development Application 17-27, entitling a two unit Planned Unit Development and Tentative Parcel Map G at 557 Manhattan Avenue; and provide direction for staff to initiate a right-of-way abandonment; or 2. Provide alternative direction to staff. PUBLIC NOTIFICATION Due to the close proximity of meeting dates for the Planning Commission and the City Council, in order to meet publication deadlines a combined Public Hearing Notice was published in The Tribune on March 30, 2018 regarding both the Planning Commission Meeting of April 11, 2018 and the City Council meeting of May 7, The combined notice of both meetings was also

4 Staff Report: Development Application Manhattan Avenue Page 4 May 7, 2018 mailed to all property owners within 300 feet. The agenda was posted in accordance with the Brown Act. ATTACHMENTS 1. Draft Resolution Development Permit 2. Planning Commission Staff Report Dated April 11, Draft Planning Commission Meeting Minutes for April 11, Revised Color Board 5. Project Plans

5 Attachment 1 RESOLUTION NO. 18- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH APPROVING DEVELOPMENT APPLICATION FOR A DEVELOPMENT PERMIT AND TENTATIVE PARCEL MAP LOCATED AT 557 MANHATTAN AVENUE (Applicant: Pace Homes, Inc.) WHEREAS, an application has been received from Pace Home, Inc. (applicant and property owner) for consideration of Development Application 17-27, requesting approval for a Development Permit and two lot Tentative Parcel Map to construct a two unit Planned Unit Development located at 557 Manhattan Avenue (APN ) in the High Density Residential (R3) Zone; and WHEREAS, the notice of Public Hearing for the Planning Commission and City Council meeting was sent to adjoining property owners and advertised in the manner required by law; and WHEREAS, the Planning Commission of the City of Grover Beach has reviewed and considered Development Application at a Public Hearing April 11, 2018 and recommended the City Council approve Development Application for a Development Permit and two lot Tentative Parcel Map; and WHEREAS, the City Council of the City of Grover Beach has reviewed and considered Development Application at a Public Hearing on May 7, 2018; and WHEREAS, the proposed project qualifies for a Categorically Exempt consistent with CEQA Guidelines, Class 15: Minor Land Divisions and Class 3: New Construction or Conversion of Small Structures; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Grover Beach HEREBY makes the following findings and determinations with respect to Development Application for a Development Permit and Tentative Parcel Map: SECTION 1. Findings of Environmental Exemption. The City Council finds as follows: 1. The proposed project is Categorically Exempt (Class 15 and Class 3) from the provisions of the California Environmental Quality Act (California Public Resources Code 21000, et seq., CEQA ) and CEQA Guidelines (Title 14 California Code of Regulations 15000, et seq.) pursuant to CEQA Guidelines Section 15315, Minor Land Divisions, based on the proposed project consisting of a two lot Tentative Parcel Map to construct a two unit Planned Unit Development in the R3 zone. The parcels have access to all services and do not have an average slope greater than 20 percent. Additionally, the project is exempt pursuant to CEQA Guidelines Section 15303, New Construction or Conversion of Small Structures, as the project proposes construction of two (2) residential units, and proposed frontage improvements are to be completed. 2. The proposed project is not located in an environmentally sensitive area, or impact an environmental resource. 3. The proposed project will not have a cumulative impact of successive projects of

6 Resolution No. 18- May 7, Manhattan Avenue Page 2 the same type, in the same place, over a period of time. The proposed project is located within a residential zone with similar types of uses. 4. The proposed project will not have a significant effect on the environment based on the project record, which is on file at the City of Grover Beach Community Development Department. 5. The proposed project is not located on a designated scenic highway nor scenic resource. 6. The proposed project is not located on any hazardous waste list pursuant to Section of the Government Code. 7. The proposed project is not a designated historical resource. SECTION 2. Findings for approval of Development Permit. The City Council finds as follows in accordance with Grover Beach Municipal Code (GBMC) Article IX, Section (F) 1. The proposed development is consistent with the General Plan, the Development Code, and other City goals, policies, and standards, as applicable. Fact. The proposed project is consistent with Land Use Element policies regarding infill development because the architectural character, materials, color, height and scale of the proposed project is compatible with the existing residences in the neighborhood. The project will meet all applicable development standards of the Development Code upon City Council approval of the right-of-way abandonment for the subject property. 2. The subject site is physically suitable in terms of design, location, operating characteristics, shape, size, and topography. Fact. The site would be developed with two detached, two-story residences and related improvements. The project has been designed to meet all development standards of the R3 Zone and for Residential Common Area Developments. The location and operating characteristics of the proposed residential project are consistent and compatible with the surrounding residential uses. 3. The site s suitability ensures that the type, density, and intensity of use being proposed will not constitute a hazard to the public interest, health, safety, or welfare. Fact. The site is currently served by City water and sewer, and all other public utilities. The use, density and intensity of the residential use are consistent with the R3 Zone. The project has been conditioned to meet all applicable codes to ensure the project will not constitute a hazard to the public interest, health, safety, or welfare. SECTION 3. Findings for approval of a Subdivision. The City Council finds as follows in accordance with Development Code Chapter 8, Subdivision Regulations: 1. Public Hearing notification has been given in the time and in the manner required by State Law and City Code.

7 Resolution No. 18- May 7, Manhattan Avenue Page 3 Fact. The agenda was posted in accordance with the Brown Act. A copy of the staff report and the meeting agenda was provided to the applicant. On March 30, 2018, the public hearing notice was published in The Tribune, posted on the subject property, and mailed to property owners within 300 feet of the subject property. 2. The proposed Tentative Parcel Map for the two lot subdivision is in conformity with both the intent and provisions of the General Plan and Development Code. Fact. The proposed project is consistent with General Plan Land Use Element policies LU-3.1, LU-20.9, and LU The proposed Planned Unit Development is consistent with the purpose and intent of the R3 Zone and complies with Development Code Section 4.30 Residential Common Area Developments upon City Council approval of the right-of-way abandonment for the subject property. 3. The proposed public and private improvements as designed and conditioned will protect and provide for the public health, safety and general welfare. Fact. The proposed project includes public improvements (curb, gutter, sidewalk, and street conform) to conform to City Standards. 4. As designed and with the conditions of approval, drainage from the proposed subdivision would not result in the violation of existing requirements prescribed by the City of Grover Beach Storm Water Management Plan. Fact. The proposed project includes an underground retention system on Lot A in the shared driveway and an above ground basin in the rear yard on Lot B to retain all runoff on-site consistent with City Standards. 5. As referenced in the staff report to the Planning Commission, the site is physically suitable for the proposed type and intensity of development. Adequate infrastructure exists to serve the project or will be constructed as part of the project. Fact. The proposed project shall install the required improvements and underground all service lines. 6. The subdivision complies with the Subdivision Map Act (Government Code Sections through ). Specifically, the tentative map complies with Section of the Subdivision Map Act because (1) the subdivision design is consistent with the applicable objectives, goals, and policies of the General Plan, (2) the site is physically suitable for the type of development, (3) the site is physically suitable for the proposed density of the development, (4) the subdivision will not cause substantial environmental damage or injure fish or wildlife or their habitat, (5) the subdivision is not likely to cause serious public health problems, and (6) the design of the subdivision will not conflict with public easements. Fact. The proposed two lot Tentative Parcel Map to construct a two unit Planned Unit Development complies with the Subdivision Map Act. SECTION 4. Development Permit and Tentative Parcel Map Approval. The City Council of the City of Grover Beach, at a Regular Meeting of the City Council on May 7, 2018 resolved to approve a Development Permit and Tentative Parcel Map subject to the following conditions:

8 Resolution No. 18- May 7, Manhattan Avenue Page 4 CONDITIONS OF APPROVAL: GENERAL G-1. G-2. G-3. G-4. G-5. The approval granted by this Resolution shall be valid for twenty-four (24) months effective after the recordation of right-of-way abandonment, and shall expire unless a valid building permit is issued and construction commenced. A request for a time extension shall be submitted to the Community Development Department as provided in Grover Beach Municipal Code Article IX, Section The Applicant agrees, as a condition of approval of this resolution, to indemnify, defend and hold harmless, at Applicant s expense, City and City s agents, officers and employees from and against any loss, liability, costs, damages, claims, action or proceeding of any kind including also any proceeding commenced to attack, review, set aside, void or annul the approval of this resolution or to determine the reasonableness, legality or validity of any condition attached hereto. City shall promptly notify Applicant of any such loss, liability, costs, damages, claims, action or proceeding to which City receives notice, and City will cooperate fully with Applicant in the defense thereof. Applicant shall reimburse the City for any court costs and attorney s fees that the City may be required to pay as a result of any such claim, action or proceeding. City may, in its sole discretion, participate in the defense of any such claim, action or proceeding, but such participation shall not relieve Applicant of the obligations of this condition. Applicant s acceptance of this resolution or commencement of construction or operations under this resolution shall be deemed to be acceptance of all conditions contained in this resolution. All Conditions of Approval shall be provided on a full size sheet as part of the construction plan set. All notes and specifications as shown on the plans shall be considered Conditions of Approval. If there is a conflict between the approve plans and the Conditions of Approval, the Conditions of Approval shall prevail. The project shall comply with all Federal, State, Local and City codes, regulations, and standards. Construction plans shall comply with applicable California Building Codes in effect at the time of submittal. Prior to commencement of construction, construction plans shall be approved and applicable permits obtained. The hours of construction shall be from 7:00 a.m. to 7:00 p.m. Monday through Friday, and 8:00 a.m. to 5:00 p.m. Saturday, Sunday, and holidays, in accordance with Municipal Code Section All construction traffic shall access the site utilizing the truck route(s) closest to the site as defined in the City Circulation Element and as approved by the City s Police Department. For the purposes of development impact fee collection, impact fees shall be based on the date of building permit submittal, consistent with the California Subdivision Map Act. COMMUNITY DEVELOPMENT DEPARTMENT CDD-1. This approval authorizes a two lot subdivision and construction of a two unit, detached Planned Unit Development in substantial conformance with the project plans attached as Exhibit A, as amended herein, with a maximum building height of 26 feet and contingent upon City Council approval of the right-of-way abandonment of

9 Resolution No. 18- May 7, Manhattan Avenue Page 5 approximately five feet on Manhattan Avenue to meet the minimum lot size of 3,500 square feet. The findings herein and the effectiveness of this Resolution are subject to the Council approving an abandonment of the adjacent City right-of-way consistent with the staff report and this resolution. CDD-2. The applicant shall submit a landscaping plan in compliance with GBMC Article IX Section 3.30 Landscaping Standards and the State s Model Landscape Ordinance, at the time of building permit submittal. FIRE DEPARTMENT FD-1. Installation of a NFPA 13D Fire Protection System is required for each unit and shall be installed in accordance with current adopted building and fire codes. Plans shall be submitted to the City of Grover Beach and Five Cities Fire Authority for review and approval. FD-2. A dedicated water service line and water meter shall be installed to each residence, as reviewed and approved by the Five Cities Fire Authority. FD-3. All submitted building plans shall meet all California Building and Fire Codes, including errata, in effect at the time of building permit submittal and shall be reviewed and approved by the Five Cities Fire Authority prior to building permit issuance. FD-4. Prior to final occupancy, the Five Cities Fire Authority shall perform a final inspection to ensure consistency with local adopted California Building and Fire Codes. PUBLIC WORKS DEPARTMENT/CITY ENGINEER PW/CE-1. PW/CE-2. PW/CE-3. All necessary documentation shall be prepared by the Applicant for the abandonment of the northerly 5 feet of Manhattan Avenue, between South 5th and 6th Streets. All costs for processing, notifications and recordation will be at Applicant's expense. The Applicant shall submit Public Improvement Plans that meets Municipal Code Article IX Section 5.20 requirements. The Plans shall depict the proposed street and utility improvements to be approved by the City Engineer. The following on and off-site improvements shall be completed prior to issuance of certificate of occupancy: a) Reconstruction of the entire road service of Manhattan Avenue from centerline to edge of property line; b) Installation consistent with City design standards; c) New utility distribution systems and services shall be constructed underground, to the satisfaction of the City Engineer; d) Each parcel shall be served with separate services for water, sewer, gas, power, telephone and cable TV. Utility laterals shall be located and constructed to each lot in accordance with City Standards and Standard Specifications. e) Street trees shall be planted a minimum of 5-feet behind the sidewalk with root barriers and deep watering systems per City Standards.

10 Resolution No. 18- May 7, Manhattan Avenue Page 6 PW/CE-4. PW/CE-5. PW/CE-6. PW/CE-7. PW/CE-8. PW/CE-9. PW/CE-10. PW/CE-11. PW/CE-12. PW/CE-13. PW/CE-14. Prior to issuance of a building permit, an engineered grading and drainage plan shall be submitted and approved by the City Engineer consistent with Development Code Section Prior to issuance of a building permit, the applicant shall comply with Development Code Section 5.60 Stormwater Construction and Post Construction Management. Prior to map recordation, all overhead utilities to be undergrounded and all services to be underground, as required by Development Code Section A final parcel map shall be prepared by a licensed engineer or licensed land surveyor consistent with Development Code Section and the California Subdivision Map Act. Prior to recording the Parcel Map, the applicant shall have the map reviewed by the public utility providers for power, telephone, gas, cable TV, and the South County Sanitation District. The applicant shall obtain a letter from each utility company stating that the easements and rights-of-way shown on the map for public utility purposes are acceptable. Documents that the City of Grover Beach requires to be recorded concurrently with the Parcel Map (e.g., off-site rights-of-way dedications, easements not shown on the map, agreements, etc.) shall be listed on the certificate sheet of the map. The City of Grover Beach may require an additional map sheet for information purposes in accordance with the Subdivision Map Act. On-site easements for ingress, egress, drainage, utilities, etc., shall be shown on the Parcel Map, or, created by separate easement documents to be recorded concurrently with the Parcel Map. Easements that are not intended to continue in perpetuity shall not be shown on the Parcel Map and shall be recorded by separate instrument. Rights-of-way acquisitions and/or abandonments shall be completed in accordance with City regulations, the Streets and Highways Code, the Subdivision Map Act, and to the satisfaction of the City Engineer. Public rights-ofway abandonments completed through the Parcel Map process shall be adequately identified on the certificate sheet of the map as well as on subsequent map sheets. Right-of-way abandonment of Manhattan Avenue shall be recorded prior to, or concurrent with, recordation of Final Map for Parcel Map (G ) Prior to recordation of the parcel map, either monuments shall be set or a cash bond be presented to the City guaranteeing their setting within one year. Also a) All engineering plan check fees shall be paid. b) All required public improvements shall be completed and accepted or the applicant shall enter into an agreement with the City for completion of all improvements prior to occupancy and shall submit 100% performance

11 Resolution No. 18- May 7, Manhattan Avenue Page 7 and material bonds plus a 15% additional bond for enforcement costs per Subdivision Map Act sections , , and Per Subdivision Map Act section there shall be no sale or lease of property until the final map is in full compliance with the conditions of approval. to wit: Upon motion by, seconded by, and on the following roll-call vote, AYES: NOES: ABSENT: ABSTAIN: The foregoing RESOLUTION NO. 18- was PASSED, APPROVED, and ADOPTED at a Regular Meeting of the City Council of the City of Grover Beach, California this 7th day of May, Attest: * * D R A F T * * JOHN P. SHOALS, MAYOR DONNA L. McMAHON, CITY CLERK

12 Resolution No. 18- May 7, Manhattan Avenue Page 8 EXHIBIT A Please see the Following Pages

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21 Attachment 2 PLANNING COMMISSION STAFF REPORT TO: Honorable Chair & Planning Commission DATE: April 11, 2018 FROM: PREPARED BY: SUBJECT: Bruce Buckingham, Community Development Director Cassandra Mesa, Building/Planning Technician Development Application Request for a Development Permit and Tentative Parcel Map for a two unit, two-story Planned Unit Development located at 557 Manhattan Avenue RECOMMENDATION Staff recommends that the Planning Commission recommend the City Council approve Development Application BACKGROUND Existing Site Conditions The subject site is an undeveloped 6,875 square foot lot measuring 50 feet wide and feet in length. The southerly property line fronts Manhattan Avenue. Data Summary: Applicant: Pace Homes, Inc. Owner: Pace Homes, Inc. General Plan Designation: High Density Residential Zoning: High Density Residential (R3) Surrounding Zones & Existing Uses: North: High Density Residential (R3) Vacant property South: Medium Density Residential (R2) 4-unit PUD East: High Density Residential (R3) 4-unit multi-family residence West: High Density Residential (R3) 2-unit PUD CR2 R3 R2 Agenda Item No.

22 Staff Report: Development Application for 557 Manhattan Avenue Page 2 April 11, 2018 Project Description The applicant is proposing the following for entitlement to create a two parcel subdivision consistent with the Planned Unit Development section of the City s Development Code (reference Attachment 1, Exhibit A): Proposed partial abonnement of right-of-way along Manhattan Avenue because the existing 6,875 square foot lot does not meet the minimum lot size for subdivision under the Development Code s PUD ordinance which requires a minimum of 3,500 square feet for each parcel; If right-of-way abandonment is approved, subdivision of the existing lot into two (2) parcels; Construction of two (2), two-story residences approximately 25-feet in height; Unit 1 (Parcel A) would include construction of a 1,175 square foot three (3) bedroom, two (2) bath residence including a roof-deck and attached two-car garage on a proposed parcel of 3,675 feet if right-of-way abandonment is approved; Unit 2 (Parcel B) would include construction of a 1,430 square foot three (3) bedroom, two (2) bath residence with a balcony / deck on the 2 nd floor and an attached two-car garage on a proposed parcel of 3,500 square feet; On-site improvements include landscaping, on-site drainage, water and sewer connections, and other requirements to meet PUD standards; Public frontage improvements including the installation of curb, gutter, sidewalk, and the reconstruction of Manhattan Avenue from the centerline of the roadway to the project frontage, consistent with the Development Code. DISCUSSION General Plan The General Plan Land Use Element has three policies (LU-3.1, LU-20.9, and LU-20.8) that apply to this project. These policies are reiterated in Development Code Section B. LU-3.1 Compatible infill development. Housing built within an existing neighborhood should be compatible in scale and in character with that neighborhood. Where neighborhoods are primarily single story, two story housing may be permitted but should be designed to respect the privacy of surrounding residences. All multifamily development and large group-living facilities should be compatible with nearby, lower density development. a. Architectural Character. New buildings should respect existing buildings where they contribute to neighborhood architectural character, in terms of size, spacing, and variety. b. Privacy and Solar Access. New buildings should be designed to respect the privacy and solar access of neighboring buildings and outdoor use areas, particularly where multistory buildings or additions may overlook backyards of adjacent dwellings. c. Compatible Color and Materials. New buildings should employ a palette of building materials and colors that complements the existing development where they contribute to neighborhood architectural character. Architectural Character & Compatibility The neighborhood comprises of single family residences, planned unit developments, and multifamily residential buildings. The surrounding development consists of both one and two-story structures with a variety of architectural styles and materials. The proposed project architectural style, roof lines, materials and colors are compatible with the surrounding development. Therefore, the two proposed two-story detached single family residences are compatible with the surrounding neighborhood in terms of building height, mass,

23 Staff Report: Development Application for 557 Manhattan Avenue Page 3 April 11, 2018 and scale. In addition, the proposed architectural character, materials and color are compatible with the surrounding developments. Privacy In general, the proposed units have been designed to respect the privacy of the adjacent properties, through the following: The second floor east elevation of Unit 1 includes windows from the dining room, kitchen, and two bathrooms that are adjacent only to the garages of the apartments to the east. The second floor east elevation of Unit 2 only includes a window from the dining room that is adjacent to the apartments to the east. The second floor north elevation of Unit 2 includes a standard kitchen window and two high bathroom windows. Unit 1 is located approximately 23 feet from the residence to the west and has windows from the stairs, living room and the master bedroom on the second floor west elevation. Unit 2 is located approximately 10 feet from the residence to the west and only has one bathroom window on the second floor west elevation. The east side of the roof deck of Unit 1 is not set back from the floor below. The view onto the property to the east would only be onto the roofs of the garages of the apartments. The east and north sides of the roof deck of Unit 2 are also not set back from the floor below. So, views into the yards of the apartments to the east and the yard of future development to the north would be possible. However, based on the floor plans, staff believes that the privacy of the adjacent properties has been respected, and meets the intent of the policy. LU-20.9 Building height of residential infill development. The height of residential infill projects should be consistent with that of surrounding residential structures, and incorporate features to protect existing views and privacy where reasonable. Where greater height is desired, an infill structure should set back the upper floors from the edge of the first story to reduce impacts on adjacent properties. Although the R3 zone allows a maximum height of 32 feet, the proposed dwellings are approximately 25 feet in height. The development to the south consists of two-story Planned Unit Developments and single story single-family residences. In addition, developments to the east and west both contain two-story structures. Therefore, the proposed two-story units are compatible with adjacent one and two-story residences and multi-family buildings. LU-20.8 Qualities desired in residential development. Residential projects should provide: a. Privacy, for occupants and neighbors of the project; b. Adequate usable outdoor area, sheltered from noise and prevailing winds, and oriented to receive light and sunshine; c. Use of natural ventilation, sunlight, and shade to make indoor and outdoor spaces comfortable with minimum mechanical support; d. Pleasant views from and toward the project; e. Security and safety; f. Separate paths for vehicles and for people, and bike paths along collector streets; g. Adequate parking and storage space; h. Noise and visual separation from adjacent roads and commercial uses. i. Design elements that facilitate neighborhood interaction, such as front porches, front yards along streets, entryways facing public walkways, and building design and orientation to minimize the prominence of the garage door.

24 Staff Report: Development Application for 557 Manhattan Avenue Page 4 April 11, 2018 The units have a private yard area for their usable private outdoor area in the form of yard area, decks, and a roof deck. The front door of Unit 1 (Parcel A) faces the street and the garage door of each unit faces the common driveway. Therefore, that the proposed project is consistent with policy LU Development Code The Development Code describes the High Density Residential Zone (R3) as an area of the City intended primarily for small lot detached and attached single-family dwellings and multi-family residential dwellings. The proposed Planned Unit Development is consistent with the purpose and intent of the R3 Zone. This project requires a Development Permit to ensure compliance with Development Code Section 4.30 Residential Common Area Developments. The proposed project complies with the development standards for the R3 Zone and Residential Common Area Developments as shown and discussed below. High Density Residential Zone Development Standard Density Requirement Maximum 20 units per gross acre (two units allowed) Two units Proposed Parcel A Parcel B Front Setback (from street) 15 feet minimum 15 feet n/a Side Setbacks 5 feet minimum 5 feet 5 feet Rear Setback (from north 10 feet minimum n/a 10 feet property line) Building Height (from 32 feet maximum feet feet average natural grade) Residential Common Area Development Standard Requirement Parcel A Parcel B Minimum Lot Size 3,500 square feet 3,675 square feet* 3,500 square feet* Lot Coverage 35 percent maximum 31.9 percent 31 percent Open Space Coverage 35 percent minimum 42 percent 37 percent Private Yard Area 300 square feet plus 30 square feet for every 100 square feet of dwelling exceeding 1,000 square feet Second Floor Area to First Floor Area Ratio Laundry Facilities Storage Area Trash Receptacles Second floor area can be a maximum of 80% of the first floor Laundry area to accommodate a washer and dryer Minimum 200 cubic feet, exterior or above hood line in garage Individual trash cans stored in garage or screened from view 2 nd floor deck: 120 square feet Roof deck: square feet Total: square feet (480 square feet required) Yard: 500 square feet Roof deck: 190 square feet Total: 690 square feet (450 square feet required) 78.9 percent 79.7 percent Laundry Room on first floor 200 cubic feet in garage Laundry Room on first floor 200 cubic feet in garage To the side of the residences behind the fences

25 Staff Report: Development Application for 557 Manhattan Avenue Page 5 April 11, 2018 Distance Between 10 feet minimum 32.5 feet Detached Units Parking 2 car garage and 1 parking space per unit 2 car garage and 1 parking space per unit *With approval of the right-of-way abandonment Development Code Section also includes the following design standards for Planned Unit Developments: 1. The design of the units shall promote architectural as well as visual relief, thereby reducing the overall structural bulk, especially on the second floor. 2. Consistent with consideration of bulk, scale, and design, the project shall minimize any cantilevering of the second floor over the first floor. 3. The height and scale of each dwelling shall be compatible with the site and existing (or proposed) adjacent buildings. 4. Architectural style is not restricted. Evaluation of the appearance of a project shall be based on the quality of its design and relationship to its surroundings. 5. Materials shall be of durable quality. 6. Monotony of design in single or multiple building projects shall be avoided. Variation in detail, form, and siting shall be used to provide visual interest. In multiple building projects, variable siting or individual buildings shall be used to prevent a monotonous appearance. The proposed project complies with the above design standards. Right-of-Way Abandonment The applicant is proposing to abandon six feet of right-of-way in order to meet the 3,500 square foot minimum lot size standard for residential common area developments. Manhattan Avenue is classified as a local street and currently has a right-of-way of 70 feet. Staff believes that only 60 feet of right-of-way is necessary based on a curb to curb width of 46-feet with 6-foot sidewalks on each side and one additional foot behind the sidewalk to allow for City maintenance. Therefore, there is approximately 10 feet of excess right-of-way on Manhattan Avenue or five feet on the north side of the street fronting the project site. Staff is recommending that approximately five feet of right-of-way along the north side of the 500 block of Manhattan Avenue be abandoned because it is in excess of the width needed to improve the street to City standards. The recommended five feet is one foot less than the six feet proposed by the applicant and would result in the proposed Parcel A of 3,675 square feet being reduced by approximately 50 square feet.

26 Staff Report: Development Application for 557 Manhattan Avenue Page 6 April 11, 2018 Parcel Map Lot proposed to be subdivided 6 x 306 area proposed to be abandoned (1,836 square feet) Staff is further recommending that the City Council provide direction to initiate right-of-way abandonment along Manhattan Avenue through the General Vacation procedure, as specified in the California Streets and Highways Code. The City Council has options on how to execute a right-of-way abandonment. The Council previously provided direction to staff that abandonments should be done for an entire block in order to maintain continuity rather than on a per-parcel basis. Staff is seeking Council direction based on the options identified below. Option 1 Abandonment Completed for Entire Block The applicant would prepare an instrument consistent with the California Streets and Highways Code and the California Subdivision Map Act to vacate five feet of excess right-of-way for six lots on the north side of the 500 block of Manhattan Avenue (shown above). The applicant would be responsible for the cost of such services. The abandonment would need to be completed prior to recordation of a Final Map. Option 2 Abandonment Completed on Proposed Project Site Only Same as above but the right-of-way abandonment would be completed on the proposed project site only. This would result in the other five lots in the block having a different lot size. Based on direction provided by Council, staff would return at a future Council meeting to initiate the right-of-way abandonment. A total of two meetings are required to abandon the right-of-way consistent with the California Streets and Highways code. Public Works Department The lot is not currently improved with curb, gutter, or sidewalk. The applicant is responsible for constructing public improvements (curb, gutter, sidewalk, and street conform) to conform to City Standards. The Pavement Condition Index for the 500 block of Manhattan Avenue is below 60. Therefore, the project is also required to construct street improvements along the frontage of the property up to the centerline of the street in order to comply with Development Code Section The project has been conditioned to install the required improvements. Development Code Section 5.40 requires new construction underground all existing and proposed overhead utilities or pay an in-lieu fee adopted by the City Council. In addition, the Code requires all overhead service lines be placed underground. A condition has been included to meet this requirement.

27 Staff Report: Development Application for 557 Manhattan Avenue Page 7 April 11, 2018 Development Code Section 5.50 requires new construction to retain all drainage on-site. Therefore, an underground retention system is proposed on Lot A in the shared driveway and an above ground basin is proposed in the rear yard on Lot B to retain all runoff on-site consistent with City Standards. Fire Department Installation of fire sprinklers is required for new residential units. Each unit has been conditioned to install fire protection systems. Environmental Review The proposed project is Categorically Exempt (Class 15) from the provisions of the California Environmental Quality Act (California Public Resources Code 21000, et seq., CEQA ) and CEQA Guidelines (Title 14 California Code of Regulations 15000, et seq.) pursuant to CEQA Guidelines Section 15315, because it consists of the division of property in an urbanized area that is zones for residential into less than four parcels and the division is in conformance with the General Plan and zoning, no variances or exceptions are required, all services and access to the proposed parcels to local standards are available, the parcel was not involved in a division of a larger parcel within the previous two years, and the parcel does not have an average slope greater than 20 percent. ALTERNATIVES The Planning Commission has the following alternatives to consider: 1. Recommend the City Council approve Development Application for a Development Permit and Tentative Parcel Map; or 2. Provide alternative direction to staff. PUBLIC NOTIFICATION The agenda was posted in accordance with the Brown Act. A copy of this staff report and the meeting agenda was provided to the applicant. On March 30, 2018, the public hearing notice was published in The Tribune, posted on the subject property, and mailed to property owners within 300 feet of the subject property. ATTACHMENTS 1. Draft Resolution Exhibit A: Project Plans

28 Attachment 1 RESOLUTION NO. 18- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH APPROVING DEVELOPMENT APPLICATION FOR A DEVELOPMENT PERMIT AND TENTATIVE PARCEL MAP LOCATED AT 557 MANHATTAN AVENUE (Applicant: Pace Homes, Inc.) WHEREAS, an application has been received from Pace Home, Inc. (applicant and property owner) for consideration of Development Application 17-27, requesting approval for a Development Permit and two lot Tentative Parcel Map to construct a two unit Planned Unit Development located at 557 Manhattan Avenue (APN ) in the High Density Residential (R3) Zone; and WHEREAS, the notice of Public Hearing for the Planning Commission and City Council meeting was sent to adjoining property owners and advertised in the manner required by law; and WHEREAS, the Planning Commission of the City of Grover Beach has reviewed and considered Development Application at a Public Hearing April 11, 2018 and recommended the City Council approve Development Application for a Development Permit and two lot Tentative Parcel Map; and WHEREAS, the City Council of the City of Grover Beach has reviewed and considered Development Application at a Public Hearing on May 7, 2018; and WHEREAS, the proposed project qualifies for a Categorically Exempt consistent with CEQA Guidelines, Class 15: Minor Land Divisions; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Grover Beach HEREBY makes the following findings and determinations with respect to Development Application for a Development Permit and Tentative Parcel Map: SECTION 1. Findings of Environmental Exemption. The City Council finds as follows: 1. The proposed project is Categorically Exempt (Class 15) from the provisions of the California Environmental Quality Act (California Public Resources Code 21000, et seq., CEQA ) and CEQA Guidelines (Title 14 California Code of Regulations 15000, et seq.) pursuant to CEQA Guidelines Section 15315, Minor Land Divisions, based on the proposed project consisting of a two lot Tentative Parcel Map to construct a two unit Planned Unit Development in the R3 zone. The parcels have access to all services and do not have an average slope greater than 20 percent. 2. The proposed project is not located in an environmentally sensitive area, or impact an environmental resource. 3. The proposed project will not have a cumulative impact of successive projects of the same type, in the same place, over a period of time. The proposed project is located within a residential zone with similar types of uses. 4. The proposed project will not have a significant effect on the environment based

29 Resolution No. 18- May 7, Manhattan Avenue Page 2 on the project record, which is on file at the City of Grover Beach Community Development Department. 5. The proposed project is not located on a designated scenic highway nor scenic resource. 6. The proposed project is not located on any list pursuant to Section of the Government Code. 7. The proposed project is not a designated historical resource. SECTION 2. Findings for approval of Development Permit. The City Council finds as follows in accordance with Grover Beach Municipal Code (GBMC) Article IX, Section (F) 1. The proposed development is consistent with the General Plan, the Development Code, and other City goals, policies, and standards, as applicable. Fact. The proposed project is consistent with Land Use Element policies regarding infill development because the architectural character, materials, color, height and scale of the proposed project is compatible with the existing residences in the neighborhood. The project meets all applicable development standards of the Development Code, once the City Council approved a partial abandonment of right-of-way along Manhattan Avenue. 2. The subject site is physically suitable in terms of design, location, operating characteristics, shape, size, and topography. Fact. The site would be developed with two detached, two-story residences and related improvements. The project has been designed to meet all development standards of the R3 Zone and for Residential Common Area Developments. The location and operating characteristics of the proposed residential project are consistent and compatible with the surrounding residential uses. 3. The site s suitability ensures that the type, density, and intensity of use being proposed will not constitute a hazard to the public interest, health, safety, or welfare. Fact. The site is currently served by City water and sewer, and all other public utilities. The use, density and intensity of the residential use are consistent with the R3 Zone. The project has been conditioned to meet all applicable codes to ensure the project will not constitute a hazard to the public interest, health, safety, or welfare. SECTION 3. Findings for approval of a Subdivision. The City Council finds as follows in accordance with Development Code Chapter 8, Subdivision Regulations: 1. Public Hearing notification has been given in the time and in the manner required by State Law and City Code. Fact. The agenda was posted in accordance with the Brown Act. A copy of the staff report and the meeting agenda was provided to the applicant. On March 30, 2018, the public hearing notice was published in The Tribune, posted on the subject property, and mailed to property owners within 300 feet of the subject property.

30 Resolution No. 18- May 7, Manhattan Avenue Page 3 2. The proposed Tentative Parcel Map for the two lot subdivision is in conformity with both the intent and provisions of the General Plan and Development Code. Fact. The proposed project is consistent with General Plan Land Use Element policies LU-3.1, LU-20.9, and LU The proposed Planned Unit Development is consistent with the purpose and intent of the R3 Zone and complies with Development Code Section 4.30 Residential Common Area Developments. 3. The proposed public and private improvements as designed and conditioned will protect and provide for the public health, safety and general welfare. Fact. The proposed project includes public improvements (curb, gutter, sidewalk, and street conform) to conform to City Standards. 4. As designed and with the conditions of approval, drainage from the proposed subdivision would not result in the violation of existing requirements prescribed by the City of Grover Beach Storm Water Management Plan. Fact. The proposed project includes an underground retention system on Lot A in the shared driveway and an above ground basin in the rear yard on Lot B to retain all runoff on-site consistent with City Standards. 5. As referenced in the staff report to the Planning Commission, the site is physically suitable for the proposed type and intensity of development. Adequate infrastructure exists to serve the project or will be constructed as part of the project. Fact. The proposed project shall install the required improvements and underground all service lines. 6. The subdivision complies with the Subdivision Map Act (Government Code Sections through ). Specifically, the tentative map complies with Section of the Subdivision Map Act because (1) the subdivision design is consistent with the applicable objectives, goals, and policies of the General Plan, (2) the site is physically suitable for the type of development, (3) the site is physically suitable for the proposed density of the development, (4) the subdivision will not cause substantial environmental damage or injure fish or wildlife or their habitat, (5) the subdivision is not likely to cause serious public health problems, and (6) the design of the subdivision will not conflict with public easements. Fact. The proposed two lot Tentative Parcel Map to construct a two unit Planned Unit Development complies with the Subdivision Map Act. SECTION 4. Development Permit and Tentative Parcel Map Approval. The City Council of the City of Grover Beach, at a Regular Meeting of the City Council on May 7, 2018 resolved to approve a Development Permit and Tentative Parcel Map subject to the following conditions:

31 Resolution No. 18- May 7, Manhattan Avenue Page 4 CONDITIONS OF APPROVAL: GENERAL G-1. G-2. G-3. G-4. G-5. The approval granted by this Resolution shall be valid for twenty-four (24) months effective after the recordation of right-of-way abandonment, and shall expire unless a valid building permit is issued and construction commenced. A request for a time extension shall be submitted to the Community Development Department as provided in Grover Beach Municipal Code Article IX, Section The Applicant agrees, as a condition of approval of this resolution, to indemnify, defend and hold harmless, at Applicant s expense, City and City s agents, officers and employees from and against any loss, liability, costs, damages, claims, action or proceeding of any kind including also any proceeding commenced to attack, review, set aside, void or annul the approval of this resolution or to determine the reasonableness, legality or validity of any condition attached hereto. City shall promptly notify Applicant of any such loss, liability, costs, damages, claims, action or proceeding to which City receives notice, and City will cooperate fully with Applicant in the defense thereof. Applicant shall reimburse the City for any court costs and attorney s fees that the City may be required to pay as a result of any such claim, action or proceeding. City may, in its sole discretion, participate in the defense of any such claim, action or proceeding, but such participation shall not relieve Applicant of the obligations of this condition. Applicant s acceptance of this resolution or commencement of construction or operations under this resolution shall be deemed to be acceptance of all conditions contained in this resolution. All Conditions of Approval shall be provided on a full size sheet as part of the construction plan set. All notes and specifications as shown on the plans shall be considered Conditions of Approval. If there is a conflict between the approve plans and the Conditions of Approval, the Conditions of Approval shall prevail. The project shall comply with all Federal, State, Local and City codes, regulations, and standards. Construction plans shall comply with applicable California Building Codes in effect at the time of submittal. Prior to commencement of construction, construction plans shall be approved and applicable permits obtained. The hours of construction shall be from 7:00 a.m. to 7:00 p.m. Monday through Friday, and 8:00 a.m. to 5:00 p.m. Saturday, Sunday, and holidays, in accordance with Municipal Code Section All construction traffic shall access the site utilizing the truck route(s) closest to the site as defined in the City Circulation Element and as approved by the City s Police Department. For the purposes of development impact fee collection, impact fees shall be based on the date of building permit submittal, consistent with the California Subdivision Map Act. COMMUNITY DEVELOPMENT DEPARTMENT CDD-1. This approval authorizes a two lot subdivision and construction of a two unit, detached Planned Unit Development in substantial conformance with the project plans attached as Exhibit A, as amended herein contingent upon City Council approval of the right-ofway abandonment of approximately five feet on Manhattan Avenue to meet the minimum lot size of 3,500 square feet. The findings herein and the effectiveness of this

32 Resolution No. 18- May 7, Manhattan Avenue Page 5 Resolution are subject to the Council approving an abandonment of the adjacent City right-of-way consistent with the staff report and this resolution. CDD-2. The applicant shall submit a landscaping plan in compliance with GBMC Article IX Section 3.30 Landscaping Standards and the State s Model Landscape Ordinance, at the time of building permit submittal. FIRE DEPARTMENT FD-1. Installation of a NFPA 13D Fire Protection System is required for each unit and shall be installed in accordance with current adopted building and fire codes. Plans shall be submitted to the City of Grover Beach and Five Cities Fire Authority for review and approval. FD-2. A dedicated water service line and water meter shall be installed to each residence, as reviewed and approved by the Five Cities Fire Authority. FD-3. All submitted building plans shall meet all California Building and Fire Codes, including errata, in effect at the time of building permit submittal and shall be reviewed and approved by the Five Cities Fire Authority prior to building permit issuance. FD-4. Prior to final occupancy, the Five Cities Fire Authority shall perform a final inspection to ensure consistency with local adopted California Building and Fire Codes. PUBLIC WORKS DEPARTMENT/CITY ENGINEER PW/CE-1. PW/CE-2. PW/CE-3. All necessary documentation shall be prepared by the Applicant for the abandonment of the Northerly 5 feet of Manhattan Avenue, between South 5th and 6th Streets. All costs for processing, notifications and recordation will be at Applicant's expense. The Applicant shall submit Public Improvement Plans that meets Municipal Code Article IX Section 5.20 requirements. The Plans shall depict the proposed street and utility improvements to be approved by the City Engineer. The following on and off-site improvements shall be completed prior to issuance of certificate of occupancy: a) Reconstruction of the entire road service of Manhattan Avenue from centerline to edge of property line; b) Installation consistent with City design standards; c) New utility distribution systems and services shall be constructed underground, to the satisfaction of the City Engineer; d) Each parcel shall be served with separate services for water, sewer, gas, power, telephone and cable TV. Utility laterals shall be located and constructed to each lot in accordance with City Standards and Standard Specifications. e) Street trees shall be planted a minimum of 5-feet behind the sidewalk with root barriers and deep watering systems per City Standards.

33 Resolution No. 18- May 7, Manhattan Avenue Page 6 PW/CE-4. PW/CE-5. PW/CE-6. PW/CE-7. PW/CE-8. PW/CE-9. PW/CE-10. PW/CE-11. PW/CE-12. PW/CE-13. PW/CE-14. Prior to issuance of a building permit, an engineered grading and drainage plan shall be submitted and approved by the City Engineer consistent with Development Code Section Prior to issuance of a building permit, the applicant shall comply with Municipal Code Article IX Development Code, Chapter 5.60 Stormwater Construction and Post Construction Management. Prior to map recordation, all overhead utilities to be undergrounded and all services to be underground, as required by Development Code Section A final parcel map shall be prepared by a licensed engineer or licensed land surveyor consistent with Development Code Section and the California Subdivision Map Act. Prior to recording the Parcel Map, the applicant shall have the map reviewed by the public utility providers for power, telephone, gas, cable TV, and the South County Sanitation District. The applicant shall obtain a letter from each utility company stating that the easements and rights-of-way shown on the map for public utility purposes are acceptable. Documents that the City of Grover Beach requires to be recorded concurrently with the Parcel Map (e.g., off-site rights-of-way dedications, easements not shown on the map, agreements, etc.) shall be listed on the certificate sheet of the map. The City of Grover Beach may require an additional map sheet for information purposes in accordance with the Subdivision Map Act. On-site easements for ingress, egress, drainage, utilities, etc., shall be shown on the Parcel Map, or, created by separate easement documents to be recorded concurrently with the Parcel Map. Easements that are not intended to continue in perpetuity shall not be shown on the Parcel Map and shall be recorded by separate instrument. Rights-of-way acquisitions and/or abandonments shall be completed in accordance with City regulations, the Streets and Highways Code, the Subdivision Map Act, and to the satisfaction of the City Engineer. Public rights-ofway abandonments completed through the Parcel Map process shall be adequately identified on the certificate sheet of the map as well as on subsequent map sheets. Right-of-way abandonment of Manhattan Avenue shall be recorded prior to, or concurrent with, recordation of Final Map for Parcel Map (G ) Prior to recordation of the parcel map, either monuments shall be set or a cash bond be presented to the City guaranteeing their setting within one year. Also a) All engineering plan check fees shall be paid. b) All required public improvements shall be completed and accepted or the applicant shall enter into an agreement with the City for completion of all improvements prior to occupancy and shall submit 100% performance

34 Resolution No. 18- May 7, Manhattan Avenue Page 7 and material bonds plus a 15% additional bond for enforcement costs per Subdivision Map Act sections , , and Per Subdivision Map Act section there shall be no sale or lease of property until the final map is in full compliance with the conditions of approval. to wit: Upon motion by, seconded by, and on the following roll-call vote, AYES: Council Member - NOES: Council Member - ABSENT: Council Member - ABSTAIN: Council Member - The foregoing RESOLUTION NO. 18- was PASSED, APPROVED, and ADOPTED at a Regular Meeting of the City Council of the City of Grover Beach, California this 7th day of May, Attest: JOHN P. SHOALS, MAYOR DONNA L. McMAHON, CITY CLERK

35 Resolution No. 18- May 7, Manhattan Avenue Page 8 EXHIBIT A Please see the Following Pages

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44 MEETING MINUTES PLANNING COMMISSION CITY HALL COUNCIL CHAMBER 154 SOUTH EIGHTH STREET GROVER BEACH, CALIFORNIA WEDNESDAY, APRIL 11, 2018 Attachment 3 CALL TO ORDER FLAG SALUTE 6:30 p.m. Commissioner McLaughlin. ROLL CALL: Commissioners Halverson, McLaughlin, Rodman, Vice Chair Blum and Chair Laferriere. City Staff: Community Development Director Bruce Buckingham, City Attorney David Hale, Senior Planner A. Rafael Castillo, Planner II Janet Reese, and Building/Planning Technician Cassandra Mesa. AGENDA REVIEW: Action: It was m/s by Vice Chair Blum/Commissioner Rodman to accept the agenda as presented and the motion passed unanimously. D R PUBLIC COMMENTS: There was no one present that wished to speak. CONSENT ITEMS: 1. Meeting Minutes of the February 14, 2018 Planning Commission Meeting Action: It was m/s by Commissioner McLaughlin/Commissioner Halverson to approve the meeting minutes from February 14, 2018, as presented and the motion passed unanimously. 2. Annual Report of the General Plan for 2017 Commission Laferriere asked that the item be pulled and considered after the public hearing items. PUBLIC HEARING ITEMS: 3. Development Application Applicant Michael Sabatino The Planning Commission will consider a Coastal Development Permit, Development Permit and Tentative Parcel Map to construct a two unit, two-story Planned Unit Development. The property is located in the Coastal Zone at 247 Newport Avenue (APN ) in the Coastal Medium Density Residential (CR2) Zone. The project is categorically exempt from the California Environmental Quality Act. A F T Building/Planning Technician Mesa presented the staff report. Chair Laferriere commented on the quality of renderings by the applicant and whether the plans were adequate to render a public discussion of the project. Director Buckingham stated that plans must meet

45 Planning Commission Minutes April 11, 2018 Page 2 minimum submittal requirements, but that the requirements do not specify how the plans are generated. Chair Laferriere opened the public hearing. Michael Sabatino, applicant, Grover Beach resident, spoke in regards to the project. In response to an inquiry from Commissioner Halverson, Mr. Sabatino stated that although the plans indicate an above-ground basin is proposed to comply with both private open space and stormwater requirements, he intends to install an underground storm chamber system to comply with stormwater requirements, and improve the usability of the private open space area. Greg Soto, project architect, Arroyo Grande resident, responded to comments made regarding the quality of the plans and color board. In regards to utilizing an above-ground basin as private open space, he stated that the basin can be utilized as long as the slope of the basin sides do not exceed a 3:1 slope. Mr. Soto requested to increase the proposed building height by one foot, indicating that the final building height would not exceed the maximum allowed height in the CR2 Zone of 25 feet in the Development Code. In response to a comment regarding the upcoming street reconstruction by Chair Laferriere, Mr. Sabatino stated he would contact the City s Public Work Department to coordinate the proposed public improvements with the current street paving project. Chair Laferriere closed the public hearing. Action: It was m/s Vice Chair Blum/Commissioner Rodman to 1) amend condition CDD-1 to read as follows: This approval authorizes a two lot subdivision and construction of a two unit, detached Planned Unit Development in substantial conformance with the project plans attached as Exhibit A, as amended herein, with a maximum building height of 25 feet. and 2) adopt Resolution The motion carried on the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: Commissioners Rodman, McLaughlin, Halverson, Vice Chair Blum, and Chair Laferriere. Commissioners None. Commissioners None. Commissioners None. Resolution No : A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF GROVER BEACH APPROVING DEVELOPMENT APPLICATION FOR A COASTAL DEVELOPMENT PERMIT, DEVELOPMENT PERMIT AND TENTATIVE PARCEL MAP LOCATED AT 247 NEWPORT AVENUE (Applicant: Michael and Crystal Sabatino) D R A F T 4. Development Application Applicant Pace Homes LLC The Planning Commission will consider making a recommendation to the City Council for a Development Permit and Tentative Parcel Map to construct a two unit, two-story Planned Unit Development. The City Council would provide direction regarding the abandonment for

46 Planning Commission Minutes April 11, 2018 Page 3 all or a portion of right of way in the 500 block of Manhattan Avenue. The property is located at 557 Manhattan Avenue (APN ) in the High Density Residential (R3) Zone. The project is categorically exempt from the California Environmental Quality Act. Building/Planning Technician Mesa presented the Staff Report. Upon question by Chair Laferriere, Building/Planning Technician Mesa clarified that, should the right-of-way abandonment be reduced from the requested six-feet to five-feet recommended by the City Engineer, the development be required to move the front unit one foot to comply with the minimum setback requirement. Upon question by Commissioners Halverson and Rodman, Director Buckingham stated that the location of the curb, gutter, and sidewalk would align with the adjacent improvements. The area of the right-of-way abandonment is located behind the sidewalk. Chair Laferriere opened the public hearing. Dan Pace, applicant, and Greg Soto, project architect, Arroyo Grande resident, acknowledged the reason the City Engineer has requested the five foot public-right-of-way abandonment and it s ramifications to the proposed project. Upon question by Commissioner Halverson, Mr. Soto stated that the ground floor bathroom would be a full bathroom and is incorrectly shown as a half bath. Mr. Soto also requested an increase in the proposed height by one foot, which would not to exceed the maximum height permitted in the zone. D R Chair Laferriere closed the public hearing. Action: It was m/s Commissioner McLaughlin/Vice Chair Blum to 1) amend condition CDD-1 to read as follows: This approval authorizes a two lot subdivision and construction of a two unit, detached Planned Unit Development in substantial conformance with the project plans attached as Exhibit A, as amended herein, with a maximum building height of 26 feet and contingent upon City Council approval of the right-of-way abandonment of approximately five feet on Manhattan Avenue to meet the minimum lot size of 3,500 square feet. The findings herein and the effectiveness of this Resolution are subject to the Council approving an abandonment of the adjacent City right-of-way consistent with the staff report and this resolution. and 2) recommend the City Council adopt the resolution approving Development Application The motion carried on the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: Commissioners Halverson, McLaughlin, Rodman, Vice Chair Blum, and Chair Laferriere. Commissioners None. Commissioners None. Commissioners None. A F T 5. Development Application Applicants Coastal Business Distribution LLC and BS & RG Holdings LLC The Planning Commission will consider making a recommendation to the City Council for a Use Permit to operate a commercial medical cannabis manufacturing and distribution

47 Planning Commission Minutes April 11, 2018 Page 4 facility. The property is located at 1141 Highland Way (APN ) in the Industrial (I) Zone. The project is categorically exempt from the California Environmental Quality Act. Planner Reese presented the staff report. Upon question by Commissioner Rodman, Planner Reese stated that the project will not restrict or affect the existing driveway access. Director Buckingham added that the existing driveway complies with the current minimum fire lane width. Chair Laferriere opened the public hearing. Warren Hamrick, project architect, Shell Beach resident, made himself available for any questions. Chair Laferriere mentioned correspondence had been received from a property owner in support of the project and closed the public hearing. Action: It was m/s Commissioner Rodman/Commissioner McLaughlin to recommend the City Council adopt the resolution approving Development Application The motion carried on the following roll call vote: D AYES: NOES: ABSENT: ABSTAIN: Commissioners Halverson, McLaughlin, Rodman, Vice Chair Blum, and Chair Laferriere. Commissioners None. Commissioners None. Commissioners None. R 6. Development Application Applicant Central Coast Clear Source LLC The Planning Commission will consider making a recommendation to the City Council for a Use Permit to operate a commercial medical cannabis manufacturing facility. The property is located at 1091 Highland Way (APN ) in the Industrial (I) Zone. The project is categorically exempt from the California Environmental Quality Act. Planner Reese presented the staff report. In reference to the increase to the Floor Area Ratio (FAR) discussed in the staff report, Chair Laferriere asked if the necessary economic development finding could be made if the proposed use was not an a cannabis use. Director Buckingham said that since the adoption of the Development Code in 2012, there has not been a request for increased FAR, however based of the adopted cannabis tax, staff believes the finding could be made. Upon question by Chair Laferriere, in the event that the requested FAR increase was not approved, Planner Reese stated that sufficient floor area would need to be removed in order to comply with the 0.5 maximum. Chair Laferriere opened the public hearing. A F T Warren Hamrick, project architect, Shell Beach resident, stated that he is supportive of staff s recommendation to remove one of the bathrooms on the second floor, but in regards to removing the kitchen, he would like to retain the kitchen area for an employee breakroom. Director Buckingham clarified that the removal of the stove would satisfy the condition. Mr. Hamrick made himself available for any questions.

48 Planning Commission Minutes April 11, 2018 Page 5 Commissioner Halverson, referring to a reference of 29 persons on the plans, asked about the number of employees and the eight on-site parking spaces. Christos Georgitsis, representative of the applicant, stated that there would be approximately eight employees. Upon question from Commissioner Rodman, Cory Black, representative of the applicant, stated that the business did not need a distribution license because they would work with a distributor to pick up the manufactured product(s) and deliver to other companies. Chair Laferriere closed the public hearing. Discussion ensued regarding the merits of increasing the FAR and the required finding that there is a substantial economic benefit. There was also an extensive discussion on whether to remove or retain the bathrooms and kitchen improvements. Commissioner Rodman made a motion to: 1) amend condition CDD-7 to read: Prior to building permit issuance, the building plans shall include the removal of one bathroom and the kitchen on the second floor. and 2) recommend the City Council adopt the resolution approving Development Application The motion was unable to obtain a second. Vice Chair Blum made a motion to: 1) amend condition CDD-7 to read: Prior to building permit issuance, the building plans shall include the removal of one bathroom, the tub/shower facility in the second bathroom, and the kitchen on the second floor. and 2) recommend the City Council adopt the resolution approving Development Application The motion was seconded by Commissioner Halverson. Chair Laferriere re-opened the public hearing to allow the applicant to comment on the amended condition. Mr. Georgitsis requested that the bathrooms be permitted to remain. He stated that their type of manufacturing process exposes the employees to trim, which gets on the employees who prefer to shower prior to going home for the day. Mr. Hamrick added that the business is not a unisex business and that they would need separate facilities for men and women. Chair Laferriere closed the public hearing. Vice Chair Blum withdrew his previous motion. D R A F T Action: It was m/s Vice Chair Blum/Commissioner Rodman to recommend the City Council adopt the resolution approving Development Application The motion carried on the following roll call vote:

49 Planning Commission Minutes April 11, 2018 Page 6 AYES: NOES: ABSENT: ABSTAIN: Commissioners Halverson, McLaughlin, Rodman, Vice Chair Blum, and Chair Laferriere. Commissioners None. Commissioners None. Commissioners None. The meeting was recessed at 8:30 p.m. The meeting reconvened at 8:35 p.m. 7. Development Application Applicant Mary s Tech CA Inc The Planning Commission will consider making a recommendation to the City Council for a Use Permit and Coastal Development Permit to operate a commercial medical cannabis manufacturing and distribution facility. The property is located in the Coastal Zone at 927 South Fourth Street (APN ) in the Coastal Industrial (CI) Zone. The project is categorically exempt from the California Environmental Quality Act. D Planner Castillo presented the Staff Report. Chair Laferriere opened the public hearing. Skyler Sweeny, representative for the applicant, Pismo Beach resident, stated that their business started in Colorado approximately 6 years ago. He stated that extraction is not part of their manufacturing process. They take oil from other manufacturers that extract and infuse it into products, then package. Upon question by Vice Chair Blum, he added that their infusion process is really mixing the ingredients together, like in cooking. Chair Laferriere closed the public hearing. Action: It was m/s Commissioner Rodman/Commissioner McLaughlin to recommend the City Council adopt the resolution approving Development Application The motion carried on the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: Commissioners Halverson, McLaughlin, Rodman, Vice Chair Blum, and Chair Laferriere. Commissioners None. Commissioners None. Commissioners None. 2. Annual Report of the General Plan for 2017 Chair Laferriere asked the Commission if there were questions regarding the report; there were none. He stated that he was happy to see that some of the General Plan Elements and Housing Element policies would be addressed in the coming year. R A F T Action: It was m/s by Vice Chair Blum/Commissioner Rodman to receive and file, as presented and the motion passed unanimously. COMMISSIONERS' COMMENTS Discussion ensued regarding the level of standards for plans. Consensus was staff would work with applicants to ensure plans are legible and include a color rendering of the front elevation.

50 Planning Commission Minutes April 11, 2018 Page 7 COMMUNITY DEVELOPMENT DIRECTOR S REPORT Director Buckingham provided the Commission a summary of recent and upcoming Council items, including direction regarding revising commercial cannabis regulations. He also provided status updates on the Grover Beach Lodge and Holiday Inn projects. ADJOURNMENT 9:41 p.m. CHAIR LAFERRIERE SECRETARY TO THE PLANNING COMMISSION BRUCE BUCKINGHAM, COMMUNITY DEVELOPMENT DIRECTOR (approved at PC meeting of ) D R A F T

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