BROWN ACT TRAINING/PRESENTATION BY ASSISTANT CITY ATTORNEY

MINUTES OF THE REGULAR MEETING OF THE SOLVANG CITY COUNCIL Council Chambers 1644 Oak Street Solvang, CA 93463 January 9, 2017 Monday 6:30 pm CALL TO ORDER: Mayor Richardson called the meeting to order at 6:30 p.m. ROLL CALL: PRESENT: STAFF: Mayor Richardson, Council Members Duus, Jamieson, Toussaint, and Zimmerman Brad Vidro, City Manager; Dave Fleishman, Assistant City Attorney; Holly Owen, Planning & Economic Development Director; Matt van der Linden, Public Works Director; Charlie Uhrig, Community Resource Officer; and Lisa S. Martin, City Clerk PLEDGE OF ALLEGIANCE: Led by Council Member Zimmerman CITY MANAGERS REPORT: Informational report only BROWN ACT TRAINING/PRESENTATION BY ASSISTANT CITY ATTORNEY Training presentation by Dave Fleishman, Asst. City Attorney, on the requirements of the Brown Act, which provides an opportunity for public oversight of government officials, and a brief overview of conflict of interest and AB 1234 Code of Ethics requirements. 9. CODE OF ETHICS (Reordered by Council due to association with Brown Act training) Staff report by City Manager, Brad Vidro. Council Member Jamieson asked the City Attorney if we needed any other codes added? Dave Fleishman replied that the Council's code of ethics is not required by state law, but is simply a code by which the Council wishes to operate. Mayor Richardson opened the item for public comment at 6:55 p.m. and, seeing none, closed the item. Motion made by Council Member Duus to review the Code of Ethics every other year coinciding with the election, seconded by Council Member Jamieson, and carried with a roll call vote of 5-0. 1. PUBLIC COMMUNICATIONS - WRITTEN OR VERBAL

Page 2 of 6 Lansing Duncan, Solvang Resident Y In regards to the Merkantile project, this is just another situation where a developer is not complying with the conditions of approval. In this case in particular, Condition No. 1 which is the Project Description. Susan Bott, WE Watch Y Discussed the grading, retaining wall, and trees at the Merkantile project. Kerry Rosetti, Solvang Resident Y No accommodation or envelopes to protect the trees Y Seems like the project is being piecemealed Y The project is not fully represented on the current set of plans Mark Oliver, Santa Ynez Valley Alliance Y The Merkantile project is producing unsavory results due to the development piecemealing 2. COUNCIL REQUESTS Mayor Richardson acknowledged the hard work of the Parks & Recreation Department 3. CORRESPONDENCE RECEIVED BY COUNCIL No discussion - informational only. 4. APPROVAL OF AGENDA AS PRESENTED There was concurrence to move Item 9, Code of Ethics, to directly after the Brown Act presentation. 5. CITY COUNCIL MINUTES OF DECEMBER 12, 2016 Motion made by Council Member Duus to approve the minutes of Agendas 1 and 2 as written, seconded by Council Member Zimmerman, and carried with a verbal response of 5 ayes. 6. CONSENT AGENDA a. Approval of Warrant Register b. Amendment No. 1 to Professional Services agreement with GSI Water Solutions, Inc. for Technical Services associated with State Permit 1. Approve Professional Services Agreement Amendment No. 1 with GSI Water Solutions, Inc. for Technical Services associated with State Permit for River Wells, in the amount of $70,000. Council Member Toussaint pulled Item 6b for more information. Staff report by Matt van der Linden. The contract is for GSI to develop an operations plan relating to our river well permit, which is necessary to resolve the protests. Mayor Richardson opened the item to public comment at 7:23 p.m. and, seeing none, closed the item. Motion to approve the Consent Agenda made by Council Member Duus, seconded by Council Member Jamieson, and carried with a roll call vote of 5-0.

Page 3 of 6 REGULAR AGENDA 7. APPEAL OF PLANNING COMMISSION APPROVAL OF AN AMENDMENT TO THE MERKANTILEN ALLEY PLAZA DEVELOPMENT PLAN AND APPROVAL OF AN ADDENDUM TO THE MITIGATED NEGATIVE DECLARATION Staff report by Holly Owen, Planning & Economic Development Director. Presentation by Appellant, Lansing Duncan. Developer had indicated they would save the retaining wall by altering their grading plan to work more with the existing topography. Developer initially worked to minimize grade changes in order to save the trees and hedge along Old Mission Drive. Presentation by Owner represented by Clint Pearce. Outreach with the community was a high priority, along with the needs of the tenants. The science/engineering takes a longer time to sort out. ADA requirements learned after submittal to plan check resulted in the need to change the grading. Council Member Zimmerman asked the owner what the increase in cost of the project was due to the need for the new retaining wall. Clint Pearce responded that the demolition and reconstruction of a new retaining wall will cost approximately $300,000. Appellant rebuttal. This is information that the owner/developer knew all along, that the grading would harm the trees and hedge as shown finally by the arborist. Asked that the Council assess all of the changes to the project, since changes in one area will result in changes to the entire plan. Would request that the Council uphold their appeal. Owner response by representative Clint Pearce. They tried to be transparent throughout the process. This issue is not something we planned or tried to hide. Mayor Richardson opened the item to public comment at 8:01 p.m. Tara Wood, Solvang Resident and former City Council Member ~ The process works, there are always concept changes ~ This project will be a complimentary entrance at that side of town ~ The Council should uphold the Planning Commission's decision and deny the appeal Susan Bott, WE Watch ~ Critical that the Old Mission Drive retaining wall issue be revisited ~ Asking that the project be returned to the Planning Commission for further review of alternatives Charlene Layman, Solvang Resident ~ Lives on Honey Locust Court ~ Likes New Frontiers, but the new building is bigger and bolder ~ It is the trees that beautify the project, they should be saved Ken Layman, Solvang Resident ~ He walks that street every morning ~ The hedge is an important bird habitat Gabe Rosetti, Solvang Resident ~ Doesn't believe the developer didn't know what was going on

Page 4 of 6 Y Y It's a case of it being easier to ask for forgiveness than permission Uphold the appeal Gary Blake, Owner of Neighboring Parcel Y Allow staff to do it's job Y Feels confident that the public will be able to participate in the Board of Architectural Review process to come to a solution The item was closed to public comment at 8: 14 p.m. Council Member Zimmerman stated that the basis for the appeal seems a bit far-fetched, doesn't think the developer wants to spend additional money. Supports the staff members. The landscaping could, and will, look a lot better. Council Member Toussaint commented that he does have concerns about the trees that are along Old Mission. The sycamores are full of mistletoe. Likes the idea of a wall that will block the sound from the loading area. There are plenty of options for new trees, possibly more trees. Would like to see lower growing evergreens that won't block the mountain views. Council Member Duus added that although he would love to keep the trees, the proposed grade is way below root level. These trees cannot be saved without raising the building pad elevations, which no one wants. Would ask that the developer look at it all because one puzzle piece affects the others. The solution should be all inclusive, he doesn't want another appeal coming back here in another three months. Council Member Jamieson mentioned that the trees have not been taken care of and are definitely full of mistletoe. Additionally, sycamore trees are water guzzlers. The hedge is covering some sort of a wire fence. The area is not currently attractive and does need reworking. Agrees that evergreens might be a good option, or possibly oaks. Mayor Richardson asked the owner what their viewpoint was as far as possible solutions. Josh Richman, Owner, explained that they have some preliminary ideas for replacement. A 3-rail split fence complimented by 8-10 large trees on the street side, or, flipped with the fence on the street side. Alternatively, a 5-6 foot high wall the entire length with vines and shrubs for screening. Also indicated that they have never received a complaint about the trucks or the trash bins at the back of the building. The planned situation will not be any different. Appellant Lansing Duncan asked that the Council direct staff and the developer to return to the Planning Commission with a complete revision package. Motion made by Council Member Duus to approve the staff recommendation and deny the appeal with an amendment to Condition C-6 of the Conditions of Approval to add that the Board of Architectural Review shall consider "Safety, Aesthetics, Sound Effects, Maintenance, Durability, Drought Tolerance, and Grafitti" when reviewing the project, and a correction to Whereas No. 3 of the Council resolution to change the word "denial" to "approval. " Seconded by Council Member Jamieson. Motion carried with a roll call vote of 5-0. 8. WATER SUPPLY UPDATE Staff report by Matt van der Linden, Public Works Director. The presentation is meant to answer questions relating to what the City is doing to address the continuing severe drought. In short, the City is

Page 5 of 6 performing long range strategic planning, making supplemental water purchases, continuing Stage 2 drought restrictions, completing capital projects, and participating in water conservation programs such as the landscape rebate program. Council Member Duus outlined some of the issues with ID#l including pumping in and out, Chromium 6, and storage. Discussion ensued relating to the spilling of the San Luis reservoir and potential options regarding storage of our banked carryover water. Water could be banked in Irvine, but we lose 50% of the water as payment. We would need an agreement with Irvine for the storage. Authorization for the City Manager to approve such contract will be brought back to Council if necessary. Mayor Richardson asked if we should start using State water since the river wells will soon run dry. Matt van der Linden indicated that we could do that. Mayor Richardson opened the item to public comment at 9:47 p.m. Gay Infanti, Solvang Resident and Planning Commissioner? Encourages the City Council to adopt a Moratorium on new developments Gary Blake, Owner of Development Projects? Would like to see approved projects exempted if a moratorium is passed The item was closed to public comment at 9:50 p.m. Council Member Duus doesn't like to discuss moratoriums, but if we are looking at losing river well production and losing half of our carryover water, it may have to happen. Council Member Toussaint asked how quickly a moratorium could go into effect. Dave Fleishman responded that staff would need to bring the item back as it would need to be properly agendized. Council Member Jamieson voiced concern that if we were actually considering a moratorium at this time, the room might be packed. We should schedule a potential moratorium item for consideration on a February meeting agenda. Motion made by Mayor Richardson to receive the report, direct staff to begin use of State Water as water supply, and to delay consideration of a moratorium on development until the first meeting in February. Seconded by Council Member Toussaint. Motion carried with a roll call vote of 5-0. 10. COUNCIL MEMBER REPORTS (Oral reports: Each Council Member will give oral reports on their activities in relation to the following committee or agencies. In addition, each member may report on items that will be included on the agenda for such committee or agency and seek guidance from the Council as a whole on such items, including on what position to take on behalf of the City) Santa Barbara County Association of Governments Air Pollution Control Board Finance Committee Joint Wastewater Committee Chumash Tribe

Page 6 of 6 Water Committee Indian Gaming Benefit Committee California Joint Powers Insurance Authority 11. ADVANCE CALENDAR Information only, no action. 12. ADJOURNMENT Mayor Richardson adjourned the City Council meeting at 10:02 p.m. Lisa S. Martin, City Clerk