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Between the verbal testimony received at the May 19 public hearing and the written testimony received through May 19, several major themes emerged, including: why the setback is needed; what other options were considered; expected benefits; the basis for reducing the number of miles proposed for protection compared to the June 2006 proposal; questions about permitted uses including maintenance of fences and lawns; how the map was developed; how the setback measurement points were defined; what the process is for challenging the setback location; and site specific issues. In addition to these themes from the public testimony, concerns were expressed by City Councilors at the May 14 work session and May 19 public hearing. See Attachment A for staff response to public testimony and councilor’s concerns. Item I.B on Attachment A is specifically in response to Councilor Clark’s questions related to whether other options were considered besides the proposed water quality waterway protections, and what the City is doing to address the water quality impact of homeless camps adjacent to waterways. Recommended Revision to Ordinance to Clarify Limit on Creation of New Lots / 33% Issue Staff have been alerted to a problem with one of the amendments proposed in the draft ordinance. The ordinance is intended to prohibit the creation of any new lot in the /WQ overlay zone (i.e. through a subdivision or partition) if the proposed lot would be configured in a way that would immediately be eligible for a setback reduction. Instead, new lots in the /WQ overlay zone should be configured so that they can be developed without the need for a reduction in the setback. Such a prohibition already exists for the Water Resources (/WR) overlay zone (Goal 5). In adding this same prohibition for the /WQ Water Resources overlay zone, the draft ordinance deleted a phrase pertaining to the /WR overlay zone (the deleted phrase is: “making the lot immediately eligible for an adjustment under EC 9.8030(21)(a)”). Based on additional communication with PDD, staff believe that the subject language should not be deleted and that, instead, similar language should be added to pertain to the /WQ overlay zone. Unless the council directs otherwise, staff intend to revise the draft ordinance, for your July 14 action date, so that sections 9.8055 (cluster subdivisions), 9.8215 and 9.8220 (partitions), 9.8320 and 9.8325 (planned unit developments), 9.8515 and 9.8520 (subdivisions) reflect the following code change: or the /WQ Water Quality Overlay Within the /WR Water Resources Conservation Overlay Zone Zone , no new lot may be created if more than 33% of the lot, as created, would be occupied by either: 1.T [t]he combined area of the /WR conservation setback and any portion of the Goal 5 Water Resource Site that extends landward beyond the conservation setback, making the lot or immediately eligible for an adjustment under EC 9.8030(21)(a); 2. The /WQ Management Area, alone or in combination with a /WR Conservation Area, making the lot immediately eligible for an adjustment under EC 9.4778(2) or 9.8030(25)(a). Additional Recommended Revisions to the Ordinance for Council Consideration and Direction In response to public testimony, staff recommends revisions to the ordinance in the following areas: ·9.4780(2)(h)(12) – Uses Permitted within /WQ Management Area: Add new sub-section which would allow maintenance and expansion of existing telecommunication facilities as a permitted use (to address COBI testimony). Note that two alternatives are provided for council consideration. The difference between the two alternatives is whether mitigation of water quality function impact would be required for expansion of telecommunications facilities. Staff recommends requiring water quality function mitigation (see Attachment C-1). It is staff’s understanding that COBI would prefer that water quality function mitigation not be required for expansions given space constraints on the property (see Attachment C-2). Z:\CMO\2008 Council Agendas\M080618\S080618A.DOC