Minimum hours for businesses, emergency shelter zone, and city design review among topics touched on in review

ATASCADERO — Zoning code updates were the main focus of the Tuesday, Sept. 8, Atascadero City Council meeting as councilmembers and staff review proposed changes before they came up for approval next month.

In introducing the Management Report H1, Comprehensive Zoning Code Update, Community Development Director Phil Dunsmore explained in his report that the Comprehensive Zoning Code update began in 2024 to dovetail with adoption of the 2045 General Plan and implement new zoning districts (Placetypes) into the Municipal Code. He said that this was a "final check-in" on zoning codes, which will be submitted for public review for the Planning Commission and then the City Council in October.

Dunsmore then brought in Genevieve Sharrow, and urban planning and housing consultant with MIG who frequently works with the city on planning initiatives, on remote. Sharrow pointed out the zoning code updates were meant to meet five goals: implementing the 2045 General Plan, code re-organization for readability and clarity, streamlining city processes, implementing City Council goals, and reaching compliance with state laws.

Dunsmore then identified eight topics addressed by the updates, the first and possibly most-discussed was setting minimum hours for downtown businesses.

Dunsmore said the current policy is the "typical 30 to 40 hours a week," but proposed to lessen the minimum for 20 hours a week for downtown businesses only to encourage smaller businesses, some that might follow the appointment-only model.

Mayor Pro Tem Mark Dariz felt that 20 hours a week wasn't enough to encourage foot traffic downtown.

"Hate to make a decision on something that might hurt us, but I wonder if we can go further," Dariz said. "Can we mix, like 20 hours a day, but with a minimum number of days. If they do that 20 hours with just two days a week, that's not going to get there."

Other councilmembers, however, didn't agree with the minimum days requirement.

"If downtown is bustling, people will want to be open longer; I'm happy with businesses deciding what days to close," said Councilmember Seth Peek. "Minimum hours requirement is not a big hurdle — 20 hours isn’t hard to ask, the days requirement I would be against."

Councilmember Susan Funk was wary about going forward with the change without further input from downtown businesses.

When Funk asked if there had been outreach as there been outreach, Dunsmore said there hadn't, but there was still time to consult business owners and he could send out a survey.

Mayor Charles Bourbeau said the consensus among council seemed to be that the 20-hour minimum "is not unreasonable" and that reaching out to business for their opinion is a good idea.

Another debated subject was that of the Emergency Shelter Overlay Zone, consisting of only the El Camino Homless Organization (ECHO) shelter, the management of which was affected by a new state law (SB 340).

"With the bill, all activities at ECHO are considered shelter operations," Dunsmore said. "There will no longer be a CUP (Conditional Use Permit) requirement allowed, though the city can still enforce management standards through existing agreements."

Dunsmore said the CUP requirement has been removed.

Bourbeau's main concern with the ECHO shelter was that it's hours were listed as 4 p.m. to 9 a.m., and there were complaints about clients hanging out on the median waiting to get in.

"We've been meeting with ECHO management about concerns," Bourbeau said. "One of the things, I would like them allowed inside early instead of hanging out on median."

Funk agreed with that idea.

"I've heard complaints about people congregating on media, but ECHO says they’re not allowed by the city to go in," she said. "Also, we had people waiting in 105-degree heat with kids, and some people needed shelter during the day because they had night jobs."

Dunsmore said new policies could be negotiated in an Operation Management Plan, which would replace the CUP requirement.

Other topics on the zoning list included updates on parking policy, the proposal to dissolve the Design Review Committee and leave its responsibilities to the Planning Commission and Community Development Director, a streamlined review process, updated tree ordinance, allowing small stores or restaurants in some zoned residential areas, and removing some restrictions for outdoor amplified sound downtown.

Anyone wanting to see the updated zoning code can find it online at atascadero.org/ZCU

In other business, Councilmember Heather Newsom pulled an item from the Consent Calendar concerning the city's ambulance service. City Manager Jim Lewis explained that the cities of San Luis Obispo County have opted to combine to select the ambulance service for the county and task the City of Paso Robles to submit the bid for all county cities. The item, D6, was a resolution to support Paso Robles' bid.

The city has contracted with San Luis Ambulance for 80 years, according to SLA, and this is the first time Atascadero has been involved in putting the contract up to bid.

"This is to support Paso Robles to submit bid for all county cities for county ambulance services," Lewis said. "State law allows cities to combine for bids, and the service had not gone before a bid in the past. We've seen an increase in costs, which is why we’re doing this.

This does not commit us to anything."

Newsom asked if other city councils have voted on the item, and Lewis said Pismo Beach approved it, and Morro Bay and Arroyo Grande were voting on it that very night.

Newsom and Peek both expressed concerns about "unknowns" that could arise out of changing ambulance services.

In Public Comment, SLA General Manager Chris J. Vine defended his company's performance in serving the city.

"We have met and/or exceeded performance standards constantly. The infrastructure's in place, and we have experience running the system."

Longtime SLA employee Nate Otter spoke next and talked about the connection that SLA had to the city.

"We took ambulances to schools, sponsored sports teams, sponsored AHS cheerleaders, were standby at the [AHS] football games," he said. "SLA has been supporting this city and county for 80 years."

Meanwhile, Atascadero resident Geoff Auslin brought up American Medical Response, a competing ambulance service, who he felt the county was looking to hire.

"Don’t go with AMR, it’s not as good," Auslin said. "In May, at the Wildflower Triathlon in Monterey County, AMR charged $600 for standby, SLA in the past charged about $250. SLA provided community service support for several events around county, and should be retained."

Back to council, Newsom said she could not support the item and moved for a vote to refuse it. That vote failed 3-2, with Peek voting with her. Bourbeau then moved to adopt the resolution, and that passed 3-2 with Newsom and Peek voting in opposition.

"We have a great relationship with SLA, but this could be good," Lewis said before the vote. "The winner will have a better service; if it’s SLA, that’s fine. Aim is to make the service better."

The City Council will next meet on Tuesday, Sept. 22, at 6 p.m.