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Minutes 2018/07/02il City of Gilroy City Council Meeting Minutes July 2, 2018 I 40IIki [0 A. Call to Order The meeting was called to order at 6:00 PM by Mayor Roland Velasco 1. Pledge of Allegiance The pledge of allegiance was led by Council Member Leroe- Munoz. 2. Invocation There was no invocation provided. 3. City Clerk's Report on Posting the Agenda City Clerk Shawna Freels announced that the agenda had been posted on June 27, 2018 at 5:15 p.m., and the revised agenda was posted on June 28, 2018 at 4:20 p.m. Attendee Name Title Status Arrived Mayor Roland Velasco Mayor Present 6:00 PM Marie Blankley Council Member Present 5:57 PM Dion Bracco Council Member Present 6:00 PM Daniel Harney Mayor Pro Tempore Present 5:55 PM Peter Leroe -Munoz Council Member Present 6:00 PM Fred Tovar Council Member Present 5:57 PM Cat Tucker Council Member Present 5:42 PM B. Orders of the Day Mayor Velasco recommended moving Item 10A (Community Facilities District Special Tax Bonds Refinancing) following the Consent Calendar (section 6), and Items 8A and 8B (Bids and Proposals) following Item 10A, and Item 7B (General Plan Amendment 17 -01) prior to 7A (Architectural and Site approval for Hecker Pass Commercial AS 17 -02). The Council agreed to the re- alignment of agenda items. C. Employee Introductions There were none. II. CEREMONIAL ITEMS A. Proclamations, Awards, and Presentations 1. Proclamation Naming July Smart Irrigation Month Mayor Velasco presented the proclamation. III. PRESENTATIONS TO THE COUNCIL Jan Bernstien Chargin spoke on the recent creek clean up event explaining that the personal items of the homeless had been collected, but had not been stored, and the homeless were unable to retrieve their personal property. Public comment was then closed. IV. REPORTS OF COUNCIL MEMBERS Council Member Marie Blankley announced the Sister Cities dinner being held on July 26th, and planned celebration of the 30th anniversary of the Sister City relationship with Takko Machi, Japan. Council Member Leroe Munoz spoke on the scheduled quarterly Mobility Partnership meeting and goals of the Highway 101 /Highway 25 realignment. City Council Meeting Minutes 07/2/2018 Mayor Velasco announced his conversation with the Coffee event being held on July 14 at 9:30 a.m. an announced he would have a representative from the Fire Department as guest speaker. He then spoke on the planned Council election candidate class he and City Clerk Freels would be holding. V. FUTURE COUNCIL INITIATED AGENDA ITEMS Council Member Bracco asked to agendize an item on motor home parking in the City, asking that the item be agendized when the homelessness update report was presented. The Council agreed to agendize the item. VI. CONSENT CALENDAR (ROLL CALL VOTE) RESULT: APPROVE [UNANIMOUS] MOVER: Peter Leroe- Munoz, Council Member SECONDER: Fred Tovar, Council Member AYES: Velasco, Blankley, Bracco, Harney, Leroe - Munoz, Tovar, Tucker A. Minutes of the June 18, 2018 Regular City Council Meeting B. Approval of Notice of Acceptance of Hecker Pass West Cluster Tract 10279 Improvement C. Reduction of the Faithful Performance and Payment Security Bonds for Back -Bone Improvements, Property Improvement Agreement No. 2014 -01, Hecker Pass East Cluster Tract 10220 D. A Resolution 2018 -23 to Set the Tax Rate for Fiscal Year 2018 -19 for the Gilroy Community Library Project Bonds E. Claim of David Galvan (The City Administrator recommends a "yes" vote under the Consent Calendar shall constitute the denial of the claim) F. Claim of National General Insurance ASO Cesar Mendez (The City Administrator recommends a "yes" vote under the Consent Calendar shall constitute the denial of the claim) G. Claims of Lauren Alcarez, Kyle Flynn, and Patrick Flynn (The City Administrator recommends a "yes" vote under the Consent Calendar shall constitute the denial of the claim) H. Letter of Support for the Public Health Department's Active Transportation Program Cycle 4 Grant Application I. Appointment of Fred Tovar as the City Council Voting Delegate for the League of California Cities Annual Conference September 12 - 14, 2018 X. INTRODUCTION OF NEW BUSINESS A. Refinancing 2002 and 2006 Special Tax Bonds for Gilroy Community Facilities District No. 2000 -1 (Highway 152 CFD) The staff report was presented by Budget Manager Atkins. There were no public comments. Possible Action: Adopt resolution 2018 -24 of the City Council of the City of Gilroy, acting as the legislative body of the City of Gilroy Community Facilities District No. 2000 -1 (Highway 152), authorizing the issuance of its special tax refunding bonds, series 2018, in a principal aggregate amount not to exceed nine million dollars ($9,000,000), approving a debt policy, and approving certain documents and taking certain other actions in connection therewith. RESULT: APPROVE [UNANIMOUS] MOVER: Cat Tucker, Council Member SECONDER: Dion Bracco, Mayor Pro Tempore AYES: Velasco, Blankley, Bracco, Harney, Leroe- Munoz, Tovar, Tucker City Council Meeting Minutes 07/2/2018 9 VIII. BIDS AND PROPOSALS A. CSG Contract Amendment No. 4 for Engineering /Inspection Services The staff report was presented by Public Works Director Awoke. There were no public comments. Possible Action: Approve an amendment to the agreement with CSG Consultants in the amount of $482,000 for engineering plan review, construction inspection, and transportation and capital project implementation support services. RESULT: APPROVE [UNANIMOUS] MOVER: Dion Bracco, Mayor Pro Tempore SECONDER: Peter Leroe- Munoz, Council Member AYES: Velasco, Blankley, Bracco, Harney, Leroe- Munoz, Tovar, Tucker B. Regional Government Services Authority (RGS) Third Contract Amendment in the Amount of $98,750 The staff report was presented by Community Development Director Abrams. There were no public comments. Possible Action: Approval of the third amendment to the agreement with RGS in the amount of $98,750 to provide staff augmentation for Planning and Housing and Community Development projects. RESULT: APPROVE [UNANIMOUS] MOVER: Cat Tucker, Council Member SECONDER: Fred Tovar, Council Member AYES: Velasco, Blankley, Bracco, Harney, Leroe- Munoz, Tovar, Tucker B. General Plan Amendment Request to Convert a Planned Through Collector Street into a Cul -de -sac at Silacci Way, Between Cameron Boulevard and Venture Way, APN's 841 -17 -107 and 841 -17 -108), Application Filed by Joseph McCarthy c/o McCarthy Gilroy LLC(GPA 17 -01) The staff report was presented by Community Development Director Abrams. The public hearing was opened; there being no comments it was then closed. Possible Action: Adoption of a resolution 2018 -25 of the City Council of the City of Gilroy approving General Plan Map Amendment application GPA 17 -01 to amend the City's General Plan Circulation Plan Map to convert Silacci Way from a planned cut - through collector street into a cul -de -sac. RESULT: APPROVE [UNANIMOUS] MOVER: Dion Bracco, Mayor Pro Tempore SECONDER: Cat Tucker, Council Member AYES: Velasco, Blankley, Bracco, Harney, Leroe- Munoz, Tovar, Tucker VII. PUBLIC HEARINGS City Council Meeting Minutes 07/2/2018 GI A. Architectural and Site Review Request for a Property Located at 2740 Hecker Pass Road (Hecker Pass Highway/ State Route 152) APN 810 -20- 006, for a Proposed "Agri- tourist Commercial" Development of Three Buildings for Proposed Uses as a Winery Building and Two Mixed Use Buildings with Restaurant/Retail on the Ground Floor, and 22 One - bedroom and Two - bedroom "Live/Work" Units on the Second Floor. Proposed Commercial Uses Total 32,758 Square Feet and are Anticipated to Consist of a Wine Tasting Room, Wine Warehouse and an Outdoor Crush Area, a Small Retail Store and Several Eateries, and a Deli and Wine Store; Applicant Hecker Pass Commercial, LLC, c/o Skip Spiering (AS 17 -02) The staff report was presented by Community Development Director Abrams. The public hearing was opened. Applicant Skip Spiering spoke on the benefits of the project to the community, highlighting the fulfillment of the Hecker Pass Specific Plan objectives in the design and use of the buildings. Phil Laursen spoke on an improved commercial activity at the project site suggesting that examples from other communities be used to create an enhanced agricultural tourism venue. Zachary Hilton described the project's possibilities sharing his support of the proposal. He outlined the Bicycle Pedestrian Commission review of the proposal and their support of the safe routes to school benefits of the project. Carol Marques of Gilroy Growing Smarter shared the organization's concerns with the size of the proposal, lack of a policy on live work development, the impacts to the view shed of the area, asking that a scaled down agricultural tourism proposal be presented. Mark Turner explained that the Gilroy Chamber of Commerce was in support of the project as it was a smart growth project that fit well into the specific plan area, and would provide more tourism and jobs to the community. Tammy Brownlow of the Gilroy Economic Development Corporation shared the benefits of the project as meeting the vision of the Hecker Pass specific plan. She shared the support of the livable community and promotion of walking and bicycling and alignment with the agricultural commercial elements of the plan. Tim Nevin spoke in support of the development explaining that it was well design and met the objectives of the Hecker Pass specific plan. Jim Hoey explained that he had not been contacted by the applicant regarding access through his adjacent property until recently, and then described a clustered housing project with larger view quarters that he had submitted to the City which had been too difficult to accomplish due to the size of the proposal. Michael Bohlig spoke on the length of time the specific plan had been in development suggesting that input from the newer community members who hadn't earlier been a part of the process also be considered, and he then asked what the long term costs the development would be to the city. Kurt Michielssen of the Gilroy Economic Development Corporation spoke in support of the proposal describing the benefits to the community including jobs, and Lori Parshall shared her concerns with the live work units at the site and access into the area. She explained that her family property was across the street and they had not been approached by the applicant regarding the proposal and she believed the residential units were taking away from the rural aspect of the corridor. City Council Meeting Minutes 07/2/2018 5 Rob Onetto of the firm that prepared the specific plan RJA, described the delays with the specific plan to create larger residential clusters and reduced agri- tourist commercial areas to create lager agricultural areas. He went on to describe the inspiration for the plan as a livable community, explaining that the site would be a place making element of the City. George Somorjai explained that he believed that there should be a more informed opportunity for the public to provide comment stating that he was not in the support of the project and parking area, as he had concerns with the site not being occupied and falling into derelict condition. Marika Somorjai shared her opposition of the proposal explaining that the project did not fit the area or the specific plan, and would create noise. Carlos Alvarez explained that the buildings would block the views and vista of Hecker Pass and the commercial spaces would likely remain vacant, which would cause for vagrancy. Mark Cisneros stated that the roads in the area were narrow as were the bike lanes suggesting that a different entryway into the development be considered. Tony Cisneros spoke on the number of families on Lone Oak Way describing the impact of the project on the quality of life in the existing neighborhood. Garrett Bennett shared his concerns with the traffic that would be created and went on to explain that his family recently moved to the area and hadn't been informed of the proposal. Alexa Bennett explained that she didn't believe the project met the vision of the city and would impact her family's quality of life. Makenzie Bennett spoke in opposition of the proposal stating that it would cause safety concerns. Meghan Bennett explained that her family had recently moved to the area from San Jose and they were concerned with increased traffic. Georgia Garfink spoke on the traffic impacts in the Lone Oak neighborhood asking that the access be moved to another location. Barbara Ordons stated that her family had moved to Gilroy because of the beauty of Hecker Pass describing the need to protect the area as the project did not meet the objectives of the specific plan. Ron Kirkish described the process of approvals the applicant had gone through explaining that the proposal met the guidelines of the Hecker Pass Specific Plan and fit well in the area. Elaine Phillips shared her concerns with traffic in the area and view impacts due to the parking lot. Chris Vanni stated he was a prior property owner and had sat on the Hecker Pass Specific Plan committee 25 years prior, explaining that the project was in compliance with the plan and was a good fit for the area. Jane Howard of the Gilroy Welcome Center shared her support of the project describing the tremendous benefits of the agricultural tourism for Gilroy Rosie Sanborn described the project she envisioned for the area sharing her opposition to the proposal as it would negatively impact the Lone Oak area due to the traffic. Carolyn Tognetti provided a handout of photos of agricultural tourism developments and stated the proposal did not meet the intent of the Hecker Pass City Council Meeting Minutes 07/2/2018 on specific plan and needed to be scaled down. She detailed her experiences in the agricultural commercial and tourism industry in Gilroy and suggested that the project would be a better fit on First or Monterey Streets. Maria Alvarez explained that she had moved to the west side of Gilroy because of the trails and rural beauty and she didn't want the rural beauty affected by the development. Kathy Johnstone shared her concerns with the proposal traffic suggesting a frontage road to access the buildings. Steve Johnstone described the Planning Commissions split decision on the proposal asking the Council to consider issues with safety and access on the narrow roadway. Debbie Hoey, adjacent property owner, shared her support of the proposal and spoke on the need to keep the rural feel of the Hecker Pass area describing the need for newer home owners in the area to adapt, just as she had when the housing on Lone Oak in the Heartland area was developed. Susan Mister described the negative visual impacts from Hecker Pass including the large parking and solar areas that would impact the scenic area, and unknown of the commercial businesses that would occupy the buildings . She spoke on the traffic impacts on Burchell Road from the development of Heartland and described potential issues with the roundabout proposed in the area. Jane Alcot asked what financial contribution the homeowners in the Heartland area had invested to be in the area. Joan Lewis explained that she had been on the Planning Commission and Hecker Pass Specific Plan Committee when it was developed. She suggested that one bedroom units be considered with a less flat look of the buildings, and suggested that all of the businesses be agricultural based. The public hearing was then closed. Possible Action: a) Adoption of Resolution 2018 -26 of the City Council of the City of Gilroy adopting the mitigated negative declaration (MND) prepared for the project based on findings required by the California Environmental Quality Act (CEQA); and RESULT: APPROVE [5 TO 2] MOVER: Marie Blankley, Council Member SECONDER: Cat Tucker, Council Member AYES: Marie Blankley, Daniel Harney, Peter Leroe - Munoz, Fred Tovar, Cat Tucker NAYS: Mayor Roland Velasco, Dion Bracco b) Adoption of a Resolution 2018 -27 of the City Council of the City of Gilroy approving the Architectural and Site Review application AS 17 -02, subject to the recommended findings and conditions, and adopt the mitigation monitoring and reporting program prepared to ensure compliance with mitigation measures identified in the Mitigated Negative Declaration. City Council Meeting Minutes 07/2/2018 7 RESULT: APPROVE [4 TO 3] MOVER: Fred Tovar, Council Member SECONDER: Peter Leroe - Munoz, Council Member AYES: Daniel Harney, Peter Leroe- Munoz, Fred Tovar, Cat Tucker NAYS: Marie Blankley, Mayor Roland Velasco, Dion Bracco IX. UNFINISHED BUSINESS A. Adoption of an Ordinance Amending Section 30.19.10(c)(2) of Chapter 30 of the Gilroy City Code and Adoption of a Resolution Amending the Downtown Specific Plan to allow Ground -Floor Offices Along Monterey Road, North of 4th Street and South of 6th Street, Within the Downtown Historic District Without a Conditional Use Permit for a Period of Two Years (Introduced 6/18118 with a 6 -0 -1 vote, Council Member Tucker absent) Possible Action: a) Motion to continue to the August 6, 2018 meeting the adoption of an Ordinance of the City Council of the City of Gilroy amending Section 30.19.10(c)(2) of Chapter 30 of the Gilroy City Code and the Downtown Specific Plan to allow Ground -Floor Offices Along Monterey Road, North of 4th Street and South of 6th Street, Within the Downtown Historic District Without a Conditional Use Permit for a Period of Two Years. RESULT: APPROVE [6 TO 0] MOVER: Marie Blankley, Council Member SECONDER: Peter Leroe- Munoz, Council Member AYES: Velasco, Blankley, Bracco, Leroe- Munoz, Tovar, Tucker AWAY: Daniel Harney B. Approval of an Agreement with Santa Clara County Library in the Amount of $160,000 of the City's Community Library Bonds for a Library Shade Structure Project Possible Action: Approve an Agreement with the Santa Clara County Library District for $160,000 of the City's Community Library Bonds for the construction of a shade structure at the Gilroy Library; and authorize the City Administrator to execute the agreement. The item was not heard. C. Council Consideration of Not Proceeding with a Potential 2018 Revenue Measure and Proceed with Community -wide Polling Possible Action: Direct staff to proceed with a community -wide poll for purposes of assessing City services and identifying community priorities, but not for the purpose of placing a revenue measure in the November 2018 election; community poll to be conducted by EMC Research in the amount of $25,000. The item was not heard. XI. CITY ADMINISTRATOR'S REPORTS There was none. XII. CITY ATTORNEY'S REPORTS There was none. City Council Meeting Minutes 07/2/2018 XIII. CLOSED SESSION A. CONFERENCE WITH NEGOTIATOR — COLLECTIVE BARGAINING UNIT Pursuant to Government Code Section 54957.6 and Gilroy City Code Section 17A.11 (4) Collective Bargaining Unit: Local 2805, IAFF Fire Unit Representing Gilroy Fire Fighters; City Negotiators: Gabriel Gonzalez, City Administrator; LeeAnn McPhillips, HR Director; Anticipated Issues(s) Under Negotiation: Wages, Hours, Benefits, Working Conditions; Memorandum of Understanding: MOU between the City of Gilroy and the Gilroy Fire Fighters B. CONFERENCE WITH NEGOTIATOR - COLLECTIVE BARGAINING UNIT Pursuant to Government Code Section 54957.6, Gilroy City Code Section 17A.11 (4) Collective Bargaining Unit: Gilroy Police Officers Association, Inc. Representing Gilroy Police Officers; City Negotiators: Gabriel Gonzalez, City Administrator; LeeAnn McPhillips, HR Director; Anticipated Issues(s) Under Negotiation: Wages, Hours, Benefits, Working Conditions; Memorandums of Understanding: MOU Between City of Gilroy & Gilroy Police Officers There were no public comments. The Council adjourned to closed session at 10:50 p.m. Shawna Freels, MMC City Clerk City Council Meeting Minutes 07/2/2018