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Councilmember Narum moved to approve the resolution adopting the midyear FY 2021/22 operating <br /> budget as recommended and as noted. She expressed delight regarding the increase in sales tax <br /> revenues for the City and hopes it is due to residents shopping local. <br /> Councilmember Balch seconded the motion. He agrees with placing the $5.3 million into the CIP <br /> Reserve in anticipation of upcoming projects where the City will be challenged to identify funding. He <br /> thanked the City staff for doing more with less staff as positions are not being filled as positions become <br /> vacant. <br /> Councilmember Arkin noted she is happy to hear sales tax revenue is rebounding and expressed <br /> caution regarding the CaIPERS forecast. She expressed support for allocating the $5.3 million surplus <br /> to the CIP Reserve for future projects. <br /> Councilmember Testa expressed delight in such a robust rebound for the City. <br /> Mayor Brown expressed support for allocating the $5.3 million to the CIP Reserve. <br /> MOTION: It was m/s by Narum/Balch to approve the resolution adopting the midyear FY 2021/22 <br /> operating budget as recommended and as noted. Motion passed by the following vote: <br /> Ayes: Councilmembers Arkin, Balch, Narum, Testa, Mayor Brown <br /> Noes: None <br /> Absent: None <br /> 14. Public Hearing —Appeal of the Planning Commission's denial of design review application (P20- <br /> 1053) to construct a new 1,069-square-foot two- story residential unit behind an existing <br /> commercial building located at 218 Ray Street <br /> Councilmember Balch reported he heard this item while he was on the Planning Commission. He noted <br /> the City Attorney advised he could participate in the hearing as there was no action on the item when it <br /> came before the Planning Commission. <br /> Community Development Director Ellen Clark reported the item is an appeal of an item previously <br /> denied by the Planning Commission. <br /> Associate Planner Megan Campbell provided a brief overview of the site on 218 Ray Street. She <br /> advised a letter of support was received from two adjacent properties. She advised letters of concern <br /> was received from property owners on Walnut Drive. She reported in 2002 a two-unit 2,400 square foot <br /> apartment building was approved on the subject site and required four in-lieu parking spaces although <br /> the project was never constructed. <br /> Associate Planner Campbell explained the current project proposal is in the same location as the 2002 <br /> project and would construct a new 1,069 square foot two-story residential unit in the rear of the lot <br /> behind an existing commercial building, along with a 434 square foot carport. She reported the project <br /> complies with its land-use designation and is located in the C-C Zone. She advised the subject lot is <br /> within the Downtown Revitalization District, the Core Overlay, and the Downtown Specific Plan (DSP). <br /> She noted the site has a land-use designation of Downtown Commercial in the DSP. She reported DSP <br /> LD-P 20 notes that ground-floor residential is permitted if certain conditions are met. She advised the <br /> Downtown Design Guidelines also apply to the subject property and staff feels the guidelines are met. <br /> Associate Planner Campbell provided a brief overview of the building design and staff found the design <br /> is compatible with existing buildings. She advised staff finds that locating the new unit behind the <br /> existing commercial building minimizes its visibility from the street. She site design does include some <br /> minor modifications including relocating some of the parking and trash enclosures to accommodate the <br /> City Council Minutes Page 5 of 12 March 1,2022 <br />