HomeMy WebLinkAboutCC Minutes 2003-04-07SRCC Minutes (Regular) 04/07/2003 Page 1
IN THE COUNCIL CHAMBER OF THE CITY OF SAN RAFAEL, MONDAY, APRIL 7, 2003 AT 8:00 P.M.
Regular Meeting:
San Rafael City Council
Also Present: Rod Gould, City Manager
Gary T. Ragghianti, City Attorney
Jeanne M. Leoncini, City Clerk
OPEN SESSION — COUNCIL CHAMBER — 7:00 PM:
Mayor Boro announced Closed Session items:
CLOSED SESSION — CONFERENCE ROOM 201 —7:00 PM:
Present: Albert J. Boro, Mayor
Gary O. Phillips, Vice -Mayor
Barbara Heller, Councilmember
Cyr N. Miller, Councilmember
Absent: Paul M. Cohen, Councilmember
1. a) Conference with Legal Counsel — Existing Litigation — Government Code Section 54956.9(a)
Case Name: Robert Lee May vs. City of San Rafael
WCAB No.: SFO 454450; 454449; 454448
b) Conference with Legal Counsel — Existing Litigation — Government Code Section 54956.9(a)
Case Name: City of San Rafael v. Alioto, et al.
Marin County Superior Court Case No. CV024726
c) Conference with Legal Counsel — Anticipated Litigation — Government Code Section 54956.9(b)(1)
Facts and Circumstances Exist Creating a Significant Exposure to Litigation
Government Code Section 54956.9(b)(3)(B)
City Attorney Gary Ragghianti announced that no reportable action was taken.
ORAL COMMUNICATIONS OF AN URGENCY NATURE:
8:00 PM
Mayor Boro announced that two groups of people wished to address the City Council at this time. He
reminded those who had indicated to the City Clerk they wished to speak to keep their comments from one
to two minutes. While comments expressed this evening would not be discussed, Mayor Boro stated staff
would apprise the speakers of where the City is with respect to their concerns.
a) Re: General Plan 2020 — San Pedro Cove Homeowners Association: - File 115 (2020) x 10-2
Mike Nelson, San Pedro Cove resident, stated he and a lot of his neighbors had been very much
involved in this design process, noting he and his wife attended the Charette and many of the Steering
Committee meetings. They had talked to City Planners, Loch Lomond developers and architects and
had done all of this because the development of the Plan is important to their community.
Mr. Nelson stated that when reading the minutes of some of the meetings he attended, he did not see
his or his group's opinions reflected; therefore, he wished to summarize some of these views.
He stated that the majority are not against development and strongly support workforce housing in the
community. They believe that any new development or design in these areas should reflect the spirit of
the community. Giving an example, Mr. Nelson stated that should it primarily be single-family, i.e., one
and two stories, to construct three, four or five stories, was something the community was totally
against.
Mr. Nelson stated they believed density and traffic in LOS (Level of Service) areas were major issues,
as were the impacts on views, and he did not see these reflected in the plans. His observation was that
ABAG (Association of Bay Area Governments), not the City of San Rafael, appeared to be driving the
process, and this did not seem right.
Joan Gosliner, San Pedro Cove Homeowners Association Board member, reiterated Mr. Nelson's
sentiments. Believing they had gone through the processes without being heard, she indicated they
felt strongly they must now be their own advocates. She questioned whether they were under-
represented on the Steering Committee as it appeared their strongest issues were of little concern to
others. Ms. Gosliner indicated she was learning there would be a total rezoning of the now primarily
recreational Marina to strictly residential; however, area residents considered it an important
recreational jewel. She indicated they wished to be on the same side as the City and the developers,
and believed this could happen if the numbers were reduced fairly significantly.
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John Linser, San Pedro Cove resident, stated that on evaluating the plans proposed for the Cove it was
found that the goals of developers were to try to make it as economically viable as possible, which has
resulted in putting maximum density in the area to be developed. Along with this comes the pressure
to find housing in San Rafael and the ABAG goals, and consequently, inappropriate development was
being proposed for the area. Giving an example, Mr. Linser indicated that the view from his back yard
would be three-story buildings and cars parked out on a spit which goes out into the Bay. He stated
that parking would be out on the streets when boats arrive, due to inadequate parking given the
buildings, and he believed that at the Steering Committee, people did not appreciate what was going
on out there. Mr. Linser requested that the City Council direct the Steering Committee to visit the Cove
to evaluate and appreciate the character of the neighborhood and the proposed development, with a
view to moderating the plans.
Community Development Director Bob Brown stated a lot of issues were involved, including the issue
of how to provide for diversity of housing in San Rafael. He clarified there was no suggestion to
change the basic zoning of the property, which now is "Neighborhood Commercial" not "Recreational."
This would essentially be retained with the addition of allowances for housing.
Mr. Brown reported that these issues would be discussed at every meeting of the Steering Committee
from now until the end of the process, anticipated to be completed by early summer. Once the
preferred plan is sent to the Planning Commission from the Steering Committee, the Environmental
Impact Report (EIR) would be commenced and would be available to both the Planning Commission
and residents when hearings begin late this year or early next year. He confirmed there would be a
great deal more analysis as part of the EIR process.
Mayor Boro recalled there were people on the Steering Committee who reside in East San Rafael and
he believed the idea of hosting a meeting with residents could make some sense. Regarding the
ABAG numbers, he explained that ABAG had taken its direction from the State of California. The
legislature was driving the numbers, not ABAG; therefore, this was not an option for the City, rather
something to work with and implement. He confirmed this was a statewide mandated program and
ABAG happened to be the local Agency overseeing it.
On behalf of the City Council, Mayor Boro thanked the speakers for their diligence. He indicated that
Council understood the issues and was confident they would be discussed further.
b) Re: Proposed Crematorium — Keaton's Mortuary: - File 13-1 x 10-2
Sally L. Seymour, San Rafael, stated she sold her business in San Francisco four years ago and
moved to San Rafael, indicating she particularly loved San Rafael, considering it to be a charming and
lively place.
Ms. Seymour stated she received no notification of the proposed crematorium until approximately three
weeks ago. Although renting, she noted she had a financial interest in the house, and was appalled
that a crematorium would be located in the middle of the "civic center" of San Rafael. She inquired as
to how many people were notified, how many would be impacted and how perfect the technology is.
She believed it was City Government's responsibility to monitor this, noting Keaton's was now a giant
corporation.
Chris Rogers indicated he rented and worked in San Rafael. Having worked in the business and lived
over a crematorium, he expressed concern regarding the discharge that would emanate.
Doctor Ted Hiatt, former Marin County Health Officer and San Rafael resident, stated he has lived one
block from the mortuary since 1971. He indicated the first notice he received was approximately three
weeks ago, and was from the Air Quality Board, affording an opportunity to comment via a telephone
recording. Understanding the point of view that it was now a "done deal," in the event it could be
undone, he urged the City Council to take this course of action. Responses he received when
discussing this issue with his neighbors included "oh, I never heard of this" or if they had heard of it
".... they can't do that, can they?"
Dr. Hiatt noted that from the literature he had received from the Air Quality Board, their only concern
was whether the discharge caused cancer, and he indicated this was not an issue, as it would not
cause cancer in any measurable amount. He believed it was unpleasant to consider having this type of
service in this particular location and those with whom he had spoken were upset, and questioned how
the proposal got this far without their knowledge.
Brad Sears stated this was a massive failure on the part of the Planning Commission. He indicated he
was proud of San Rafael, noting many moved to and stayed in San Rafael for various reasons, and he
objected to being subjected to this type of pollution. He stated there would be an industrial incinerator
and being a Canadian corporation, the funds would be sent out of town. He questioned the benefit to
San Rafael.
Mr. Sears reported that having walked the streets handing out leaflets, he realized that 99% of the
people were not aware of the proposed crematorium and believed the 300 -feet required noticing to be
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absurd. He urged the City Council to reverse this decision, indicating that the residents of San Rafael
deserved better.
Noren Schmitt, Forbes Avenue resident and Fifth Avenue business owner, reported he had learned of
the proposed crematorium two days ago. Indicating he was a little more than 300 feet from the
proposed site, he stated it was not in the interest of the neighborhood or the City. In terms of future
generations, he believed this operation would be ongoing for the next ten to twenty years and he hoped
the City Council would make a difference and vote to make a change.
Summarizing the history, Community Development Director Bob Brown reported that the application for
a Use Permit was filed in July, 2002. The required 300 -feet was noticed, i.e., 30 property owners. The
Zoning Administrator hearing took place on September 4, 2002, and was attended by one member of
the public.
Mr. Brown reported that the analysis conducted by staff for the Use Permit hearing was twofold:
1) At the beginning of the process, staff checked with the experts (engineers at the Bay Area Air
Quality Management District - BAAQMD), which ultimately must issue an air emissions permit, to
determine whether the equipment had the potential for creating a significant impact, in which case
an Environmental Impact Report of some nature would have been completed. Mr. Brown stated
staff was informed that this equipment in this location would not exceed their threshold of
significance - a conservative assumption of people living next to the facility for 70 years and the
facility operating twenty-four hours per day; and
2) Regarding odor impacts, Mr. Brown stated that on checking, staff found similar equipment was
installed and is operating in very similar circumstances in Santa Rosa and Vallejo, both situations
immediately adjacent to residential and commercial. In both cases, the operators, BAAQMD and the
cities were contacted, and it was ascertained that no concerns of odor impacts had been reported
from those operating facilities.
On this basis, Mr. Brown stated the permit was issued on September 4, 2002. No appeal was filed and
there was no challenge to the CEQA determinations. While the permit is valid, it was conditioned upon
the receipt of an air quality permit from the Bay Area Air Quality Management Agency. As indicated,
staff at BAAQMD noticed the neighbors over a greater distance than the City. A risk assessment was
carried out and as initially indicated to staff, they found it did not meet their level of significance.
Mr. Brown stated it was his understanding they revised that assessment based upon input from the
neighborhood. Staff had not as yet seen a copy of the revision; however, Mr. Brown believed the
conclusions were the same. As of Friday, they indicated they were ready to issue the permit; however,
he was unaware of whether they actually had done so as yet.
Should the permit be issued, the only outstanding condition of the application, Mr. Brown indicated it is
valid and at this point, cannot be challenged.
Commenting that the third issue appeared to relate to the nature of the use, i.e., unpleasant, creepy,
etc., Mr. Brown stated the City cannot incorporate this type of comment or rationale in a permit
decision-making process. Rather, a denial has to be based on hard evidence that this use would
create an impact on public health, safety and welfare. He believed staff did as required in analyzing
the permit, and he believed it is valid if the conditions are met upon receipt of an air emissions permit.
City Attorney Gary Ragghianti observed that since this is a conditional Use Permit, if after the use
becomes operative it constitutes or is perceived to be a nuisance, or evidence supports the fact that it
is a nuisance, it may be revoked upon notice to the permittee, and affording an opportunity to be heard.
He stated that Conditional Use Permits are always subject to revocation proceedings, as long as the
evidence supports the revocation.
Responding to Mayor Boro's question as to how many people were noticed by BAAQMD, Mr. Brown
indicated they use a much greater notification provision than San Rafael. He explained they notified
property owners and renters and sent notices to all of the students at Marin Academy and Saint
Raphael's schools; therefore, this noticing was clearly in the thousands. Mr. Brown indicated he
believed this took place approximately thirty days ago.
Councilmember Phillips moved and Councilmember Miller seconded, to approve the following Consent
Calendar items:
ITEM
RECOMMENDED ACTION
2. Approval of Minutes of Regular Meeting of Minutes approved as submitted.
Monday March 3, 2003, and Special and Regular
Meetings of Monday, March 17, 2003 (CC)
SRCC Minutes (Regular) 04/07/2003 Page 3
3. Resolution Authorizing the Closure of Mission
Avenue Between C and E Streets on Saturday,
April 19, 2003 from 1:00 p.m. to 5:00 p.m. to
Accommodate Pedestrian Traffic to the Alice in
Wonderland Egg Hunt at Falkirk Cultural Center
(Cult. Aff.) — File 11-19 x 9-3-84
4. Resolution Authorizing Agreement Between the
County of Marin and the City of San Rafael
Regarding the Marin Literacy Program (Lib.) —
File 4-13-86 x 9-3-61
5. Monthly Investment Report for Month Ending
February, 2003 (MS) — File 8-18 x 8-9
6. Resolution of Appreciation to Peacock Garden
Club Re National Arbor Day Tree Planting at
Davidson Middle School (PW) — File 102 x 109
7. Resolution Authorizing a Home Loan Agreement
for Police Chief Michael Cronin (CM) —
File 4-10-334 x 9-3-30 x 7-4
8. Summary of Legislation Affecting San Rafael
(CM) — File 9-1
9. Implementation of Joint Services Committee
Recommendations (CM) —
File 4-13-112 x 4-4-6(b) x 9-3-11 x 9-1
SRCC Minutes (Regular) 04/07/2003 Page 4
RESOLUTION NO. 11284—
RESOLUTION AUTHORIZING THE
TEMPORARY CLOSURE OF MISSION
AVENUE BETWEEN C AND E
STREETS FOR THE ANNUAL
FALKIRK "ALICE IN WONDERLAND
EGG HUNT" ON APRIL 19, 2003,
FROM 1:00 PM — 5:00 PM
RESOLUTION NO. 11285 —
RESOLUTION AUTHORIZING THE
MAYOR AND CITY CLERK TO
EXECUTE AN AGREEMENT WITH
THE COUNTY OF MARIN FOR THE
MARIN LITERACY PROGRAM TO
PROVIDE LITERACY SERVICES FOR
THE MARIN COUNTY FREE LIBRARY
Accepted Monthly Investment Report
for month ending February, 2003, as
presented.
RESOLUTION NO. 11286 —
RESOLUTION OF APPRECIATION TO
PEACOCK GARDEN CLUB RE
NATIONAL ARBOR DAY TREE
PLANTING AT DAVIDSON MIDDLE
SCHOOL
ADOPTED RESOLUTION NO. 11287 —
RESOLUTION APPROVING A HOME
LOAN FOR POLICE CHIEF MICHAEL
CRONIN AND AUTHORIZING THE
MAYOR TO EXECUTE A HOME LOAN
AGREEMENT
ADDroved staff recommendation:
AB 136 Workers Compensation.
Disability: Leave of Absence —
Assembly Member Kehoe — OPPOSE;
AB 1388 Massage Therapy and
Bodywork Registration — Assembly
Member Kehoe — SUPPORT
Approved staff recommendation.
AYES: COUNCILMEMBERS: Heller, Miller, Phillips and Mayor Boro
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: Cohen
PUBLIC HEARINGS:
Mayor Boro announced that with regard to the following three items which related to one particular
project, he would rearrange the sequence and commence with number 11. He stated the record should
show that Councilmember Cohen was absent this evening, being out of the State on personal business.
11. Public Hearing -
CONSIDERATION OF DENIAL OF APPLICATIONS FOR THE ST. VINCENT'S VILLAGE
DEVELOPMENT PROJECT INCLUDING PREZONING, ANNEXATION, GENERAL PLAN
AMENDMENT, PLANNED DEVELOPMENT, USE PERMIT, ENVIRONMENTAL AND DESIGN
REVIEW PERMIT AND VESTING TENTATIVE MAP APPLICATIONS; APN: 155-010-27,64,
69,70 AND 77; PROPERTY OWNER/APPLICANT: CATHOLIC YOUTH ORGANIZATION OF
THE ARCHDIOCESE OF SAN FRANCISCO, ST. VINCENT'S DIVISION (CYO) (CD) —
FILE 5-5 x 4-13-103 x 115 (2000) x 115 (2020) x 10-2 x 4-3-400 x 9-2-45
Mayor Boro declared the public hearing opened.
Community Development Director Bob Brown reported that on January 13, 2003, the City
Council indicated a change in perspective with regard to the future annexation of the lands of
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St. Vincent's and Silveira. He explained the Council concluded that it was no longer in the
City's best interests to annex and serve future development on these properties, and directed
staff to have the sites removed from San Rafael's Sphere of Influence and Urban Service Area
with the Local Agency Formation Commission.
Mr. Brown stated that at the City Council meeting of January 13, 2003, and subsequently, the
applicants for the St. Vincent's Village proposal asked that the City continue to process their
development applications. This was the purpose of this evening's action, i.e., to take action on
the applications filed by St. Vincent's.
Mr. Brown explained that the cornerstone of these applications was the prezoning, which must
occur before annexation could be considered. He stated the property is currently in the County
and zoned by the County and to annex into San Rafael, the property must be prezoned with
San Rafael's own zoning designations that conceivably would accommodate the proposed
development.
Explaining that prezoning is a legislative action over which the Council has broad discretion, Mr
Brown stated there is no compulsion to prezone the property even if the current General Plan
discusses future development and annexation of these lands. Rather, it must only be found
that the decision is in the interests of the public health, safety and welfare.
Mr. Brown stated that the resolution as drafted by staff sets forth numerous findings for denial of
the prezoning, including the likely impacts of the project on freeway congestion, which is
severe, the lack of a partnership with the County Board of Supervisors over the planning of
these properties, and Council's desire not to expend substantial City time and resources in
processing these development applications.
Should Council decline to prezone the property, Mr. Brown stated that then all other entitlement
applications must also be denied, since they are dependent upon the prezoning for consistency
with the General Plan and zoning designations. He reported that the current County zoning is
A-2 on the developable portions of the St. Vincent's property, allowing one unit per every two
acres, and this would not be consistent with the level of development proposed by the St.
Vincent's Village applications.
Mr. Brown also noted that denial of the applications is not subject to the California
Environmental Quality Act; therefore, initiation and completion of the project EIR is not
necessary.
Mr. Brown indicated that either he or the City Attorney would be happy to answer questions.
Mayor Boro invited a representative for the applicant to address the Council.
City Attorney Gary Ragghianti announced that at 6:13 p.m., a facsimile was received from the
attorney for the applicant, Mr. Michael Durkee, consisting of a two-page letter, the last
paragraph of which indicated that Mr. Durkee would not be attending the meeting, nor would
any representative of the applicant, Shapell. Mr. Ragghianti indicated this letter had been
copied and made available to the public.
Roger Roberts, 223 Southern Heights Boulevard, San Rafael, stated he had been a resident of
San Rafael since 1981. He reported that some years ago, he was on the City Council of the
City of Larkspur, at which time there was a proposal to take over the Kentfield Fire District
Station at the corner of Sir Francis Drake and College Avenue. Having evaluated this very
carefully, Mr. Roberts stated that due to the costs involved, the proposal was denied, which he
believed was a wise decision. He believed a similar situation was being faced in this case.
Having generated some estimates of the cost to the City should the property be annexed and
the anticipated revenues should the project go forward, Mr. Roberts stated that under
reasonable assumptions, it is likely that the City property and business tax revenue from the
proposed built -out Shapell project would probably be somewhere between $800,000 and $1
million per year. He indicated this was based upon a build -out value of the property of
approximately $742,000,000, plus the commercial space to be developed, for a total value of
the property of approximately $743,000,000.
Mr. Roberts stated that the property tax rate of 1 % against that property value would be $7.44
million per year, of which the City's share would be 11 %, or roughly $818,400. Therefore, even
to disagree with these particular numbers, he believed it reasonable to assume that somewhere
between $800,000 and $1 million would be the expected return from this project.
Questioning the important issue of whether the project would be a fiscal drain on the City, Mr.
Roberts stated it probably would, and at best would be fiscally marginal. To meet the response
time standards of the City, he indicated it was likely that the project would require additional Fire
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and Police facilities on site, plus additional equipment to service the site, and additional staff to
provide 24-hour service support. He estimated, therefore, that the annual cost of servicing the
project, not including the capital or recreation costs, rather the core costs of Fire and Safety,
would amount to approximately $1 million per year.
From his analysis, Mr. Roberts concluded it probably was not prudent for the City to even
consider annexation of the site for this development if the project is only marginally fiscally
sound, and he urged the City Council to reject the application on this ground, together with the
others presented by staff.
Having ascertained that approximately 6 people wished to address Council, Mayor Boro
requested that they limit their comments to approximately 3 — 5 minutes.
Art Gray, Terra Linda, reiterated his sentiments of a previous occasion concerning the denial of
a 200 -unit student dormitory in San Luis Obispo. He indicated no one was sued in this
connection.
Kathy Lowry, Marin Conservation League, stated she was here to support and compliment staff
on the thorough job they had done sorting this issue out. She urged the City Council to accept
the staff recommendation and deny the application.
Don Dickenson stated he had been a resident of San Rafael since 1980 and on going through
some papers recently, realized that the first occasion he spoke to the City Council on this item
was April 20, 1988 during hearings on what became General Plan 2000. He indicated it had
been a long and sometimes, bitter road; however, while he believed this would be the eventual
result, he had not been clear as to how it would happen.
In terms of tonight's issue, Mr. Dickenson stated it was important to stress that this property is
not in the City. A prezoing application is entirely a discretionary legislative matter and the City
could not be forced to approve it. He indicated staff, with legal advice, had developed very
strong arguments for Council in terms of why the applications should be denied, and for the
record, he highlighted some:
Prezoning of the property as requested by Shapell clearly would be detrimental to the
public health, safety and welfare and would result in a large undeveloped property
continuing to exist between the City limits and the St. Vincent's property. Such leapfrog
development results in inefficient provision of City services, higher cost of infrastructure
to City residents, increased impacts on traffic and transit services, greater impacts on air
quality and loss of agricultural land in an important community separator. Inefficient use
of land in this manner contravenes policies specific to these properties contained in the
City's General Plan 2000. Additionally, such leapfrog developments proposing only
development of the St. Vincent's property, contravenes principles and land use policies
established by the Cortese -Knox Act and by LAFCO policies.
Prezoning of the St. Vincent's property as requested by Shapell would also be
detrimental to the public health, safety and welfare in that it would result in an increase
in traffic on Highway 101, which is already operating at an unacceptable level of service
during the morning commute hours. As indicated in the staff report, the proposed project
would add between 4% and 5% to the traffic volume on Highway 101. The staff report
points out that this exceeds the Congestion Management Agency's standards for
significant impact for highway segments already operating at Level Service F by 400 —
500%.
The City's General Plan 2000 also sets forth a plan for development phasing that
envisions certain improvements would proceed or occur simultaneously with the
development of the St. Vincent's property. As described in detail in the staff report,
these improvements have been neither funded nor are they even currently planned.
Traffic congestion during the commute periods has also increased significantly since
preparation of General Plan 2000 back in 1986. Highway 101 has deteriorated from
Level of Service E in the morning commute to Level of Service F.
• General Plan 2000 also states that development should occur at the same time as or
after completion of needed roadway improvements. As described in the staff report,
only one of those needed roadway improvements had actually occurred to date.
Additionally, General Plan 2000 requires that development should not occur until a
decision is made on use of the Northwestern Pacific Railroad right-of-way.
Mr. Dickenson stated this was a very complete and comprehensive staff report, outlining for the
City Council all the reasons why these applications should be denied, and with mixed feelings,
he indicated he realized this may be the last occasion for him to appear before the City Council
on this matter.
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SRCC Minutes (Regular) 04/07/2003 Page 7
Nona Dennis, Mill Valley resident, stated she was a member of the most recent Task Force on
St. Vincent's/Silveira and indicated she would make four brief comments that derive from the
staff report, which she found very thorough. The four points consisted of: Opposition, Non -
Contiguous Development, Traffic Impact and Housing. She stated that these came from her
own experience as a member of the Task Force.
Opposition — Ms. Dennis reported it is stated several times in the Findings of Fact and in the
staff report and documents that two members of the Task Force "backed out" of the agreement
to the recommendations. Pointing out the reasons for doing this, she stated it was felt there
was not agreement in a major way, rather a wide disparity in opinions, as to the level of
development appropriate at St. Vincent's. Secondly, they were assured, having signed the
recommendations that they would be forwarded to the Steering Committee to be reviewed and
considered in the General Plan Update process. Ms. Dennis stated it took two years for those
recommendations to finally emerge into public view. Had this occurred perhaps two years
earlier, the current situation and the expense of the process thus far could have been avoided.
She stated the City now finds that perhaps that opposition is shared by a broader segment of
the citizenry than previously considered.
Non -Contiguous Development — Ms. Dennis stated it was refreshing to see in a staff report
such terms as: not infill development, leapfrog, inefficient use of land, etc. She stated that
during the Task Force process, they were reminded a number of times that in fact, they were in
the City Centered Corridor and it was not infill. She indicated there was a wide difference of
opinion within the Task Force as to whether this would or would not be infill development; they
felt it would not.
Traffic Impact — Ms. Dennis reported the Task Force early on was given an analysis of
regional traffic impact and were assured there would be a net improvement with developing St.
Vincent's/Silveira on the regional network. She expressed relief it was found that traffic would
have a significant impact, given the present Level of Service F on that segment.
Housing - Indicating that even the environmental representatives agreed to a limited amount
of housing at the low end of the spectrum, Ms. Dennis stated they cared about housing and
were very concerned that it is provided. They were reassured staff found that perhaps, the City
could meet the 2006 housing goals through infill.
Ms. Dennis stated she wished to support the resolution
Alex Foreman, Gerstle Park resident, stated he represents most of San Rafael on the Marin
Municipal Water District; however, was present this evening as the Chair of the Marin Group
Sierra Club, which supports the staff recommendations strongly.
Mr. Foreman stated they believe this project was ill-conceived and is not the best way to meet
the need for affordable workforce housing, nor is it an appropriate project for San Rafael, rather
belonging in the hands of the County. He stated the Sierra Club is willing and pledges to work
with the City of San Rafael and the other government entities in the County to find solutions for
the housing crisis. He stated they had been supportive of recent affordable housing projects in
Point Reyes Station, Corte Madera, Mill Valley and those also in San Rafael that are genuine
infill projects, and would continue this active support.
There being no further comment from the audience, Mayor Boro closed the public hearing
Councilmember Miller stated he was present this evening engaged in the legislative process for
which he was elected and in which he puts the common good ahead of all individual and
institutional interests. He indicated he had come to this evening's legislative duty and public
hearing fully prepared, with extensive and comprehensive study of the St. Vincent's Village
project and ancillary issues.
Councilmember Miller stated he did not wish to argue with the testimony presented this evening
by the speakers and that submitted in the letter by Mr. Durkee on behalf of Shapell Industries of
Northern California. He acknowledged, however, he had heard, appreciated and understood the
espoused positions and their foundations. He stated he would vote for the resolution denying
the applications for the proposed St. Vincent's Village development project based on the
rationale and steadfast arguments in the 38 Whereases and 6 Findings of Fact forthrightly
stated in the resolution.
Of the history of the St. Vincent's Village proposal and the multiple reasons for denial
expressed in the 38 Whereases, Councilmember Miller stated that for him, number 36 was the
prevailing and chief determinant as to why he was voting for the denial of the applications. He
quoted:
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SRCC Minutes (Regular) 04/07/2003 Page 8
"WHEREAS, without the previously anticipated and necessary partnership, cooperation and
support based upon the previously referenced MOU from the County, the enormous amount of
City time and resources necessary for processing the Shapell/CYO applications, including
preparation of an EIR pursuant to CEQA and the conduct of numerous hearings over possibly
several years, all as required by City code provisions and State law, are perceived by the
Council to be overly burdensome and likely doomed to inability to produce a project that would
be feasible."
Councilmember Miller stated he also reached his conclusions to deny all the applications of this
project based on the following thoughts found in the 6 Findings of Fact in the resolution. He
stated he believed it would be detrimental to the public health, safety and welfare to approve
this project. He indicated that the message he hears over and over from his constituents is
"don't add another car onto 101 until their is some congestion relief." Councilmember Miller
stated that the benefits of the HOV Gap Closure project had not been experienced. The voters
had not supported the SMART train, Countywide bus service is about to be cut by 25% and the
County of Marin cannot place a minimal transportation measure on November's ballot because
of the near certainty that the measure would fail, as did the last one.
He explained it was his belief that circumstances had changed and there was no longer a
partnership with the Board of Supervisors to go forward with the proposed St. Vincent's Village
project. The Board of Supervisors does not support the level of development for the properties
recommended by the St. Vincent's/Silveira Task Force, rather the Board of Supervisors clearly
prefers the advice and counsel of the distinguished, knowledgeable, experienced environmental
activist who organized and publicly voiced opposition to the St. Vincent's Village proposal.
Councilmember Miller stated he believed tonight's legislative act is consistent with the City of
San Rafael's General Plan. As he understood Council's authority, he stated the City Council is
not required by law to agree to annex and prezone lands outside the City's boundaries if they
believe it not to be in the best interests of the City, regardless of the vision in the 1988 General
Plan. He stated that the property in question is in the County and is zoned by the County. The
Board of Supervisors is entitled to its own vision for the use of the St. Vincent's properties and
would have to make wise decisions about how to balance the community interests expressed in
the St. Vincent's/Silveira Task Force recommendations, the rightful economic interests of the
owners of the property and the protection of the ecological systems of the earth itself.
Even without the St. Vincent's project, Councilmember Miller stated the City of San Rafael
would meet its housing goals mandated by the State of California. To accomplish the required
housing goals, he indicated the City would have to do with more mixed use and infill
developments in neighborhoods throughout the City, as proposed in the Draft Housing Element
submitted to the State of California.
In conclusion, Councilmember Miller stated that if this Council, acting in its capacity as
legislators, chooses not to prezone this property for annexation, then all other applications must
be denied, since they require the prezoning and do not comply with the County's current A-2
zoning or with the Countywide Plan.
Councilmember Miller stated a fork in the road had been reached in the community's
discernment on the use of the beautiful lands of St. Vincent's. Should the City Council vote to
deny the applications for the St. Vincent's Village development proposal, County government is
at the helm of the discernment process at this junction. He stated the common good cries out
for sustainable development that Herman Daly defines as "a progressive, social betterment,
without growing beyond the ecological caring capacity." Councilmember Miller expressed the
wish that the individual interests of all parties and stakeholders in these properties find sufficient
and just satisfaction in the achievement of the common good.
Councilmember Heller stated that through the past ten years of looking at this project, she had
a huge education in the planning process. She thanked staff for the excellent report. She
commented on the eloquence of the speakers, noting students were present this evening who
perhaps, were trying to catch up with the process, and indicated everyone was available to
answer questions at the conclusion of tonight's meeting.
Indicating she would vote to deny the prezoning application at this time, Councilmember Heller
stated she believed it to be to the benefit of the City and in the interests of the health, safety
and welfare of citizens to do so. Committing to a long, expensive time-consuming and
planning process she did not believe to be in the City's best interest at this time. She noted the
City faces a huge amount of problems, including the State budget and its ancillary issues.
Councilmember Heller stated that comments from the Board of Supervisors and the public
indicate that the Task Force recommendations agreed to by both the County and the City are
not supported at this time. She stated it was understood that an agreed upon tax sharing
agreement between the County and the City could be changed, and financially, it could
SRCC Minutes (Regular) 04/07/2003 Page 8
SRCC Minutes (Regular) 04/07/2003 Page 9
definitely be a detriment to the City to go ahead with a huge project at this time
She noted the findings had shown many reasons, including approving this development could
result in non-contiguous property development, which is not allowed for in the General Plan,
and as she had learned from LAFCO, would create an island, again, not allowed under LAFCO
policies and procedures.
Councilmember Heller reported she had read with great interest that traffic would be increased
by a huge amount by allowing this project to go forward. Circumstances have changed since
adoption of the General Plan 2000. Roadway improvements have not been provided and no
plans have been or are being considered at this point, to provide a lot of these roadways.
She stated that disapproving this legislative prezoning proposal is consistent with the General
Plan 2000. The additional adequate and available sites needed for housing would be provided
to get the City's Housing Element through the State in the coming years.
She thanked everyone for their help and advice with this issue.
Councilmember Phillips acknowledged the points made this evening. As both sides had, he
also had given this matter a lot of consideration to reach a conclusion. He explained he tried to
reach this conclusion so that he could be comfortable with himself in the process; however, he
also took the input received into consideration.
Indicating that he understood the principal points with regard to both sides of the argument,
Councilmember Phillips noted that those in favor of the development certainly had good
intentions. Affordable housing was often cited and he believed many in the community would
be sympathetic to that argument, and as was pointed out, with or without this property, the City
believed the State needs could be satisfied, and also as perceived by many, the needs of the
City.
Councilmember Phillips also believed there was an issue of fairness to the property owners that
was taken into account in reaching this conclusion. This has been "open space" and had been
preserved for a great number of years; therefore, as a community, a debt of gratitude was owed
to the owners of the property for maintaining it for as long as they had. He understood the
economic need, particularly of St. Vincent's and their ongoing program, which is a real asset to
the community; however, he believed there was a balance and this related to the environmental
impact. Councilmember Phillips indicated that traffic and the beauty of the land had been
discussed, and while no one had come forward with a satisfactory solution for the traffic, in
balancing the principal issues, these certainly came to mind.
In his decision-making, Councilmember Phillips reported he did look at it from a practical
standpoint. He explained that even if a prezoning were to occur, he queried the eventual
outcome as best it could be envisioned. He stated the eventual outcome is not very attractive
from the City of San Rafael's viewpoint and therefore, it would be foolish beyond the good
arguments presented in the staff report, and this evening, to prezone as a precursor to further
development of the property. He referred to an article written some time ago by Dick
Spotswood, which he believed summarized, in many ways, the City of San Rafael's position
rather nicely. The article was written on January 23, 2002 and he quoted —
"There are likely a majority of Supervisors opposed to the development at St. Vincent's. Since
the suits can block annexation, San Rafael may return the responsibility of handling any
development application back to the County. The bottom line is that San Rafael does not need
the hassle if ultimately, the County will not permit annexation."
Councilmember Phillips stated that even to go through the process, incurring the time and
expense, the City could end up, as Mr. Spotswood continues:
"Then if the County denies the development permit and the County cannot raise the money to
buy the land, it will be the County and not the City of San Rafael that is in the hot seat. Then
the County will have to defend an inevitable lawsuit that contends that denial of reasonable
development is an unconstitutional taking of the land without compensation."
Councilmember Phillips stated it appeared to him that the City would find itself in a situation of
either being sued by housing advocates, environmentalists or perhaps the property owners.
Beyond the reasons cited in the excellent staff report, Councilmember Phillips stated that
additionally, there are some real practical considerations, i.e., what does the City gain to go this
way, other than "heartburn" and a two-year process, ending up with a lawsuit. He did not
consider the City needed this; therefore, he would vote in favor of denial of the application for
prezoning.
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SRCC Minutes (Regular) 04/07/2003 Page 10
Councilmember Phillips hoped all concerned appreciated the thought process gone through by
Councilmembers, and the conclusions drawn, whether there was agreement or not. He hoped
recognition would be given to the fact that they spent a lot of time considering the viewpoints of
those in the audience this evening and those constituents talked to. He appreciated the well-
written staff report, documenting the many concerns and considerations.
Mayor Boro stated that in preparing for this evening's meeting and reviewing the
documentation, he also reviewed the minutes of the meeting of January 13, 2003. He indicated
having thought back to a City Council meeting in December, 2002, when he asked staff to look
at the City's options "in light of recent events."
He recalled that Councilmember Phillips had just used the word "practical" and stated it was
necessary to be very practical and real in attempting to achieve something in the public sector,
as is done in the private sector. Mayor Boro stated that prior to last November, a lead
Supervisor was supporting this project, and it was pretty apparent, albeit silent, that he had the
majority of his Board with him at that time. There was a real change. While the one person did
not make a difference, Mayor Boro believed the one person gave courage to others. He
recalled having stated back in January, 2003, that should anyone from the County feel
differently, they could certainly inform the City; however, three months, almost to the day, even
while personally meeting Supervisors weekly, there had been no communications, oral or
written, that the City was going down a path they would not support.
Mayor Boro stated this led him to believe the basic principle, talked about in January and
evident this evening, is the fact that this City has a very full plate and a lot of issues to deal
with, not only the General Plan, but the daily running of the City with decreasing resources.
While more than willing to take on any issue he believed could be achieved, Mayor Boro stated
that to take on an issue such as this causing concern and anxiety, and ultimately not being able
to deliver the product, did not make sense to him. He indicated this was his feeling in January,
he felt this way this evening and he did not believe the City had the cooperation of the County
of Marin to go forward.
On the other hand, Mayor Boro stated he did not consider this a victory for one side or the
other. He believed these property owners would not go away. There needed to be fairness to
those who owned the property, they had a right to develop it, there had to be some provision for
housing in the community, whether it be under the County's or City's jurisdiction, it was a
needed commodity and foremost on this site, the environment needed to be protected. While
he believed it could happen, Mayor Boro felt it would happen in a different venue from the City
of San Rafael.
Reiterating that he was more than willing to support some reasonable use of that site, Mayor
Boro stated he did not believe it could just sit there, rather it needed some opportunity, which he
did not think the City could deliver. This was his basic concern and the reason for his
supporting the resolution.
Mayor Boro reported he had gone through the many elements of the motion before Council this
evening and from his point of view, believed it was in the best interest of the City of San Rafael
not to process this application because the City could not control it, as previously believed, in a
partnership that had now evaporated. Conversely, he strongly believed that whomever had this
authority, now the County of Marin, would have to be accountable to the property owners and
the environment, and had a responsibility to those who desired to live here in the future.
City Attorney Gary Ragghianti suggested that should a Councilmember wish to make a motion,
it should be to deny the prezoning application for the St. Vincent's and Silveira properties as
requested, and to deny each and every of the other pending applications, on the basis of the
resolution wording contained on page 6. For the record, Mr. Ragghianti requested that the
party making the motion read into the record this paragraph so that everyone was certain as to
the basis upon which these pending applications were being denied.
Moving the motion, Councilmember Heller read the following paragraph into the record:
"NOW THEREFORE, BE IT RESOLVED based upon all of the matters referred to herein
above as well as the specific and detailed findings which follow that the City of San Rafael does
hereby decline to prezone the St. Vincent's and Silveira properties as requested in the
applications on file so as to permit the development proposed in the Shapell/CYO applications
and further does hereby decline to amend at present the General Plan to incorporate the Task
Force recommendations concerning these lands. Be it further resolved that, absent prezoning
of the St. Vincent's property, the Shapell/CYO Vesting Tentative Map is inconsistent with the
current land use designations for the property, and therefore may not be approved.
Accordingly, and be it further resolved, the Shapell/CYO applications for a Planned
Development, Use Permit, and Environmental and Design Review Permit, are also
disapproved. This resolution is based on the preceding and the Findings of Fact, which follow,
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SRCC Minutes (Regular) 04/07/2003 Page 11
which are incorporated herein by reference in full."
Councilmember Phillips seconded, to adopt the Resolution.
RESOLUTION NO. 11288 — RESOLUTION DENYING APPLICATIONS FOR:
(1) PREZONING (ZCO2-001), (2) ANNEXATION (AX02-001),
(3) GENERAL PLAN AMENDMENT (GPA02-001), (4)
PLANNED DEVELOPMENT (ZCO2-001), (5) USE PERMIT
(UP02-106), (6) ENVIRONMENTAL AND DESIGN REVIEW
(ED02-034) AND (7) VESTING TENTATIVE MAP (TS02-001)
FOR THE PROPOSED ST. VINCENT'S VILLAGE
DEVELOPMENT PROJECT (APN: 155-010-27764,69,70
AND 77)
AYES: COUNCILMEMBERS: Heller, Miller, Phillips and Mayor Boro
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: Cohen
10. Public Hearing —
CONSIDERATION OF TERMINATION OF THE MEMORANDUM OF UNDERSTANDING
(MOU) BETWEEN THE CITY OF SAN RAFAEL AND THE COUNTY OF MARIN
PERTAINING TO THE LANDS OF ST. VINCENT'S AND SILVEIRA -
FILE 4-13-103 x 5-5 x 115 (2000) x 115 (2020) x 10-2 x 4-3-400 x 9-2-45
Mayor Boro declared the public hearing opened
Community Development Director Bob Brown reported that this action follows from the previous
actions of January 13, 2003 and tonight's denial of the St. Vincent's development applications.
He indicated that the MOU (Memorandum of Understanding) entered into between the City and
the County in 1998 states that the City would act as the lead agency in the processing of
development applications. Mr. Brown stated that since the City is now indicating that the
County is the land use agency that should process any permits for entitlements on the St.
Vincent's and Silveira properties, the MOU should be terminated.
Mr. Brown stated that notice had been provided to the County Board of Supervisors as required
by the termination provisions of the MOU.
Jerry Frate stated he resided off Smith Ranch Road in San Rafael, near the project, and
indicated he attended a lot of Task Force meetings. He inquired whether the City would advise
the County of anything other than development. Mr. Frate stated that during the Task Force
meetings, there were a number of ideas that were not development heavy, i.e., truck farming,
vegetable farming, testimony that park and recreational facilities were needed, and a lot of
people had different ideas concerning the site being a park, open space, having trails, etc. By
cutting off the MOU, Mr. Frate questioned whether anything was being sent to the County in this
respect.
Responding, Mayor Boro stated that dropping the MOU was with respect to the process that
was in place. He indicated the County was well represented in that process, the County
Community Development Director was part of it and the record would indicate that the County
certainly knew what the City and those on the committee talked about; therefore, they were
aware of the options. Mayor Boro stated he did not believe that at this point, the City was in a
position, or would wish, to advise the County as to what they might want to do. He believed it
was their issue to deal with and they had all the data available to them.
Mr. Frate stated it appeared there still was interface and the City by just turning its back, left it
up to the County to see what they wanted to happen there.
Renee Silveira stated she was present on behalf of her father, Tony Silveira and uncle, Joe
Silveira, owners of the property.
Ms. Silveira requested clarification, as it appeared to her there was a lot of County input and
interaction in terms of drawing up the MOU; however, there was no discussion in terms of this
process. She had heard about newspaper articles, public comments by various Supervisors,
Mayor Boro seeing Supervisors frequently; however, no discussion. To her, it appeared very
irresponsible to make a decision of this importance that initially involved a lot of interaction and
now, suddenly there was this big chasm. She believed it irresponsible of the County and the
City not to talk; it was unfair and was a very sad, dismal statement on how the City and the
County should work together.
Ms. Silveira stated this spelled waste to her. There were years of planning involved and the
Silveiras were in this situation because of the County. She indicated that the County
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SRCC Minutes (Regular) 04/07/2003 Page 12
designated these properties in the urban corridor and the City did what it was supposed to do.
She stated the City did not decide these things on its own, rather it was on the marching orders
of what the County did; therefore, to her, it appeared that not having a discussion was
ridiculous.
Ms. Silveira stated they were disheartened and shocked. While understanding the City's
anxiety concerning controversy, she stated there always had been controversy and if the
County and City wanted to be responsible, they would both come to a mid line and discuss the
situation in a responsible manner, rather than one party being intimidated by the other. She
stated the City had been the compass on this property for the past few years and she believed
they really wanted to do the right thing. In her opinion, Ms. Silveira stated the County had been
acting irresponsibly in terms of the property. Inquiring as to the County's position on the
property, she stated they collected property taxes each year that amounted to the market
potential of the property. She believed there were double messages and the Silveiras were at a
point of incredible disappointment, and sadness for those who had put a lot into the process.
Ms. Silveira acknowledged the City had put a lot into the process and believed it was a big
waste and a real loss for a lot of people. For the record, Ms. Silveira stated her father was
supportive of annexation and she did not understand the "leapfrog" concept in terms of the
annexation.
Mayor Boro stated that he was not concerned with the issue of anxiety, rather he was frustrated
at not being able to deliver the project. To go through the anxiety and hearings and then be
stopped, the question was whether it made sense. The County had not talked to the City, and
no comments had been received, outside of those seen. Mayor Boro stated he believed the
County would be pleased they now had this land to process; it would be their responsibility and
he had stated his concerns about this earlier.
There being no further comment from the audience, Mayor Boro closed the public hearing.
Councilmember Phillips moved and Councilmember Miller seconded, to adopt the resolution.
RESOLUTION NO. 11289— RESOLUTION TERMINATING THE MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY OF SAN RAFAEL
AND THE COUNTY OF MARIN PERTAINING TO THE LANDS
OF ST. VINCENT'S AND SILVEIRA
AYES: COUNCILMEMBERS: Heller, Miller, Phillips and Mayor Boro
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: Cohen
12. Public Hearing —
CONSIDERATION OF AN APPEAL OF THE CITY'S DETERMINATION OF
INCOMPLETENESS OF A VESTING TENTATIVE MAP APPLICATION FOR THE ST.
VINCENT'S VILLAGE DEVELOPMENT PROJECT AND CONFIRMATION OF
INCOMPLETENESS OF VARIOUS OTHER APPLICATIONS, INCLUDING PREZONING,
GENERAL PLAN AMENDMENT, PLANNED DEVELOPMENT, USE PERMIT AND
ENVIRONMENTAL AND DESIGN REVIEW PERMIT; APN: 155-010-27,64,69,70 AND 77;
PROPERTY OWNER/ APPLICANT: CATHOLIC YOUTH ORGANIZATION OF THE
ARCHDIOCESE OF SAN FRANCISCO, ST. VINCENT'S DIVISION (CYO) (CD) -
FILE 5-5 x 4-13-103 x 115 (2000) x 115 (2020) x 10-2 x 4-3-400 x 9-2-45
Mayor Boro declared the public hearing opened
City Attorney Gary Ragghianti stated the record should reflect that the last sentence in Mr.
Durkee's April 7, 2003 letter, written on behalf of the applicant states:
"On behalf of Shapell Industries of Northern California, Inc., we hereby authorize the City to
conduct the hearing on our Permit Streamlining Act appeal in our absence."
Mr. Ragghianti stated this was that hearing.
Anne Moore, Contract Planner for the project, stated she had prepared a status staff report for
this evening; however, it was rather an anti -climax item, and concerned the appeal of whether
the applications, particularly the Vesting Tentative Map, are complete or not. She explained
there were two letters from St. Vincent's in the packets concerning this matter — the St.
Vincent's legal representatives' letters of February 18 and 21, 2003 - putting forth numerous
bases for appeal that the Vesting Tentative Map was deemed complete by passage of a 30 -day
period of time after submittal of materials in November of 2002.
SRCC Minutes (Regular) 04/07/2003 Page 12
SRCC Minutes (Regular) 04/07/2003 Page 13
Ms. Moore stated all of the points raised by Mr. Durkee in his letter were responded to. Not just
the Vesting Tentative Map was discussed, rather it was assumed because of some of the
language in his letter, there was a possibility of an appeal concerning other incompleteness
items. She stated the concern about whether the application was complete or not was raised
by the applicant only after the January actions concerning the lands of Silveira and St.
Vincent's. It had not come up in any of the two years' worth of meetings held with the
applicants, nor in all of the time that had passed since their March, 2002 applications had been
deemed incomplete in April of 2002.
Ms. Moore stated the Annexation application is complete, having been deemed complete in
August, 2002; therefore, the issue concerns all of the other applications.
Ms. Moore stated that what happened on November 18, the date that supposedly 30 -days later
a Vesting Tentative Map was deemed complete, relates to what happened in August and
September, when the applicant had revised their project description document, and that was
the result of the many months of work they had done on their project. She stated staff was very
concerned because there was not a set of graphics accompanying the revised project
description dated September 3rd, that accurately described the revised project. The applicant
was informed this was necessary so this information could be distributed to all other City
departments, agencies and organizations to which the September project description document
had been distributed. Ms. Moore reported it took them quite a while to get those materials
together; they began submitting materials on October 23 and by November 18, finally had the
requisite number of plans and of all the pages therein that were needed to accompany the
project description document. She indicated that those materials were then distributed to other
City departments and other public agencies and organizations.
Ms. Moore reported that at that point in time there was no letter indicating that this was a
substantial resubmittal of an application. In fact, the only real material was a document entitled
"Graphics for St. Vincent's Projects" which was exactly what was requested in September.
Ms. Moore stated staff recommended adoption of the resolution denying the appeal of the City's
determination that the Vesting Tentative Map is incomplete and confirming that the other
applications, Prezoning, General Plan amendment, Planned Development Application, Use
Permit and Environmental and Design Review applications are also incomplete.
There being no comment from the audience, Mayor Boro closed the public hearing.
Councilmember Phillips moved and Councilmember Heller seconded, to adopt the resolution.
RESOLUTION NO. 11290 — RESOLUTION DENYING THE APPEAL OF THE CITY'S
DETERMINATION THAT THE ST. VINCENT'S VILLAGE
PROJECT APPLICATION FOR VESTING TENTATIVE MAP IS
INCOMPLETE AND CONFIRMING THAT APPLICATIONS
FOR PREZONING, GENERAL PLAN AMENDMENT,
PLANNED DEVELOPMENT, USE PERMIT AND
ENVIRONMENTAL AND DESIGN REVIEW PERMIT ARE
ALSO INCOMPLETE
AYES: COUNCILMEMBERS: Heller, Miller, Phillips and Mayor Boro
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: Cohen
COUNCILMEMBER REPORTS:
13. None.
There being no further business, Mayor Boro adjourned the City Council meeting at 9:30 p.m.
JEANNE M. LEONCINI, City Clerk
APPROVED THIS DAY OF 12003
MAYOR OF THE CITY OF SAN RAFAEL
SRCC Minutes (Regular) 04/07/2003 Page 13