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HomeMy WebLinkAboutItem 09 - Tolling and 1yr Extension of all City Discretionary Approvals due to COVID-19Department Name: Community Development Cost Center: 4001 For Agenda of: June 16, 2020 Placement: Consent Estimated Time: NA FROM: Derek Johnson, City Manager Prepared By: Michael Codron, Director of Community Development Brian Leveille, Senior Planner SUBJECT: TOLLING AND ONE-YEAR EXTENSION OF ALL CITY DISCRETIONARY APPROVALS DUE TO THE COVID-19 PANDEMIC EMERGENCY RECOMMENDATION Adopt a Resolution to accomplish the following actions deemed necessary to support economic recovery: 1.Toll the expiration of any City entitlement set to expire on or after March 17, 2020, which will retroactively extend approvals that expired after the City declared the pandemic emergency. 2.Extend the term of all active City planning entitlements for one additional year following the end of the Covid-19 pandemic emergency. 3.Extend the life of all commercial cannabis business operator permits by a fixed period of six months from the original date of expiration. 4.Extend the life of all building permit applications by a fixed period of six months from the original date of expiration. DISCUSSION Background On June 2, 2020, the City Council adopted the 2020-21 Financial Plan supplement with a singular, integrated Major City Goal – Economic Recovery. One of the near-term actions identified to implement this goal is the extension of entitlements so that they do not expire, forcing a project developer to restart the approval process and causing delays in the economic recovery effort that could result in business closures and lost revenue opportunities for both businesses and city operations. Staff is now recommending that the City Council adopt a resolution authorizing extension of City discretionary approvals and building permit applications. City Discretionary Approvals Staff’s recommendation is to extend all City discretionary approvals, issued under the Zoning Regulations and active on the date of the emergency declaration on March 17, 2020, for one year following the declared end of the state and local emergency. Specifically, for any discretionary approval active on March 17, 2020, the one-year “life” of the permit will be extended by both the term of the emergency plus one additional year. Item 9 Packet Page 115 The term of the emergency is tied to the Governor’s declaration of a state of emergency, the County Public Health Officer’s declaration of a public health emergency, and the City Council’s local emergency declaration. Chapter 17.104.070 of the City’s Municipal Code includes the following: If building permits are not issued for site development authorized by a discretionary permit within one year of the date of approval or such longer time as may be stipulated as a condition of approval, the permit shall expire with the building permit application. Upon written request received prior to expiration, the director may grant renewals of an approval for successive periods of not more than one year each, up to a total of three years. Requests beyond three years are subject to review by the planning commission. Approvals of such renewals shall be in writing and for a specific period. Renewals may be approved with new or modified conditions upon a finding that the circumstances under which the permit was originally approved have substantially changed. Renewal of a permit shall not require public notice or hearing, unless the renewal is subject to new or modified conditions. In order to approve a renewal, the director, or planning commission as applicable, must make the findings required for initial approval. (Ord. 1650 § 3 (Exh. B), 2018) The recommendation before the City Council is to approve a generally applicable extension to the term of any approval covered by this section of the Municipal Code by the term of the pandemic emergency, plus one year. This extension would not impact the ability of any individual applicant or project proponent to pursue additional extensions, not to exceed a cumulative three years when combined with this general extension, as provided by this section. Building Permit Applications Building permit applications submitted before January 1, 2020 are subject to the 2016 California Building Code (CBC). These applications are required by the code to be actively pursued and issued within six months of the application date. The CBC does provide for the possibility of successive 90-day extensions. The recommendation before the City Council is to grant a single, six-month extension to all building permit applications submitted prior to January 1, 2020, extending their potential life to June 30, 2021. CBC Section 105.3.2 - An application for a permit for any proposed work shall be deemed to have been abandoned 180 days after the date of filing, unless such application has been pursued in good faith or a permit has been issued; except that the building official is authorized to grant one or more extensions of time for additional periods not exceeding 90 days each. The extension shall be requested in writing and justifiable cause demonstrated. Item 9 Packet Page 116 Commercial Cannabis Business Operator Permits The City of San Luis Obispo has issued five commercial cannabis operator permits during the past year. One of those permits has been activated and four have not met all of the requirements. If a commercial cannabis operator permit is not fully activated (meaning the business is open and continually operating) within one year of permit issuance, then current code provisions specify that the operator permit expires. Commercial cannabis business operators have been impacted by Covid-19 similar to other business types in the City. The process of activating a commercial cannabis operator permit is extensive and requires approval of a Conditional Use Permit, application for building permit, construction per the approved building permit, stocking inventory and opening for business. Accomplishing all of this within one year is represents an ambitious schedule during normal times and the current pandemic and other world events define this time as anything but normal. In light of the generally applicable recommended entitlement and building permit extensions discussed above, as well as the inextricable intertwined relationship between such land use entitlements and building permits and the activation requirements of a cannabis operator’s permit, staff is also recommending a six-month extension on the activation of currently issued operator’s permits to align with building permit extensions, due to the effects of the pandemic emergency. The relevant code section follows. SLOMC 9.10.070.D. Duration and Activation of Permit. Each commercial cannabis operator permit issued pursuant to this chapter shall expire twelve months after the date of its activation. The permittee may apply for renewal prior to expiration in accordance with this chapter. Each commercial cannabis operator permit must be activated within twelve months of issuance. The permit is activated by the issuance of a use permit for the commercial cannabis activity pursuant to Section 17.86.080, together with all other applicable city permits and state licenses, and the commercial cannabis operator thereafter opening and continuously operating the commercial cannabis activity. Failure to timely activate the permit shall be deemed abandonment of the permit and the permit shall automatically lapse. (Ord. 1673 §§ 1, 2 (Exh. A), 2020; Ord. 1647 § 4 (Exh. A (part)), 2018) Policy Context The proposed action is consistent with the City’s Major City Goal for economic recovery and facilitates the City’s sub -goal for Housing Production. Further, the recommendation will help avoid time and cost spent reviewing individual approval extension requests. Public Engagement This project has followed an “inform” level of public engagement. However, the City has received specific requests for this action to help preserve the value of entitlements granted by ensuring that they do not expire before they can be acted on. CONCURRENCE The City’s Assistant City Manager for Community Services and the Economic Development Manager concur with this recommendation. Item 9 Packet Page 117 ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: No Budget Year: N/A Funding Identified: No Fiscal Analysis: Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund N/A State Federal Fees Other: Total The recommendation will have no fiscal impact on the City. However, the extension of the life of entitlements and building permit applications is expected to have a positive economic effect on the community. ALTERNATIVES 1. The City Council can extend discretionary approvals for a different time period. This action is not recommended because together, the tolling of approvals and the one-year extension, will provide a substantial increase in the life of all active entitlements. In the case of building permit applications, six months is the longest term enabled by the California Building Code. 2. The City Council can decide not to extend entitlements or building permit applications. This action is not recommended because the City Council has adopted Economic Recovery as a Major City Goal and this action is intended to be supportive of the goal. Attachments: a - Draft Resolution Item 9 Packet Page 118 RESOLUTION NO. _____ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA PROCLAIMING THE CONTINUING EXISTENCE OF A LOCAL EMERGENCY REGARDING THE COVID-19 PANDEMIC AND EXTENDING THE LIFE OF DISCRETIONARY APPROVALS, BUILDING PERMIT APPLICATIONS AND CANNABIS OPERATOR PERMITS TO MITIGATE ECONOMIC IMPACTS AND AID IN ECONOMIC RECOVERY WHEREAS, section 2.24.060 of the Municipal Code empowers the Emergency Services Director to request that the City Council proclaim a local emergency when the City of San Luis Obispo is affected or likely to be affected by a public calamity and the City Council proclaimed a local emergency at its regular meeting on March 17, 2020 regarding the COVID-19 pandemic and has subsequently regularly reviewed said proclamation and proclaimed the continuation of local emergency; and WHEREAS, the Secretary of Health and Human Services Director issued a Determination that a Public Health Emergency exists and has existed of January 27, 2020; and WHEREAS, the President of the United States has declared a State of National Emergency; the Governor of the State of California has proclaimed a State of Emergency for the State of California and issued Executive Orders and direction regarding measures to mitigate the spread of cases of COVID-19 within the State of California; the San Luis Obispo County Emergency Services Director has proclaimed a local emergency; and the San Luis Obispo County Public Health Director has declared a public health emergency related the spread of cases of COVID-19 within the State of California and all recitals set forth therein, are included as though fully set forth herein; and WHEREAS, on March 19, 2020, the Governor issued Executive Order N-33-20, including the Order of the State Public Health Officer mandating all individuals living in the State of California to stay home or at their place of residence except as needed to maintain continuity of operations of the federal critical infrastructure sectors and has issued subsequent orders permitting phased re-opening and requiring continuing measures to mitigate the spread of COVID- 19; and WHEREAS, the City of San Luis Obispo will be required to help enforce all restrictions imposed by the State of California and by the County of San Luis Obispo acting as the heal th agency; and WHEREAS, the pandemic COVID-19 continues to spread worldwide and in the U.S., continuing to present an immediate and significant risk to public health and safety, and resulting in serious illness or death to vulnerable populations, including the elderly and those with underlying health conditions and is anticipated to continue to spread in response to phased re- openings and significant heightened social interaction and group gatherings associated with recent protest activity; and Item 9 Packet Page 119 WHEREAS, heightened levels of public health and safety planning and preparedness have been necessitated in preparation for and response to confirmed cases of COVID-19 in the County of San Luis Obispo, and rapid response not lending itself to otherwise applicable notice and approval timelines has been and will be necessary to respond to the rapidly evolving pandemic and its related, and to mitigate against the spread or resurgence of COVID-19 and its resulting mental and physical health, social, and economic impacts, compromising the public health and safety; and WHEREAS, in the absence of such actions, an escalation of the spread remains an imminent threat and County wide health services may become overwhelmed and unable to keep up with medical demand for care and availability of hospital or care facility capacity; and WHEREAS, the pandemic and necessary federal, state and local public health orders requiring social distancing to prevent spread of COVID-19 have had and will continue to have devastating economic impacts on the local community, including residents, businesses, employees and City operations; and WHEREAS, the City has instituted its Fiscal Health Contingency Plan in order to mitigate against economic impacts of emergency response costs and significant revenue reductions and has made drastic reductions to current and projected city costs through reductions in purchasing, limits on hiring, capital improvement project deferrals, and furloughs of temporary and supplemental staff; and WHEREAS, Article 14, Section 8630, of the California Emergency Services Act requires that the City Council review the need for continuing the Local Emergency at least every sixty (60) days until such Local Emergency is terminated. NOW, THEREFORE, BE IT PROCLAIMED AND RESOLVED by the City Council of the City of San Luis Obispo that: SECTION 1. All recitals set forth above, and all recitals included in support of Federal, State and County actions referenced herein, are adopted as though fully set forth herein as findings in support of this Resolution; and SECTION 2. A local emergency continues to exist throughout the City resulting from the condition of extreme peril related to the pandemic of COVID-19, which, absent continuation of preventative measures, and in the absence of a vaccine, is still deemed to be beyond the control of normal protective service, personnel, equipment, and facilities of and within the City; and SECTION 3. Due to the severe economic impacts of COVID-19 and its economic impacts on the community and the City organization and in order to prevent situations where developers or contractors need to restart the discretionary review process or delay construction projects with the need to reapply for permits or request individual extensions and to focus limited staff resources on supporting the effective implementation of COVID-19 public health and safety compliance measures for the protection of employees and customers of businesses within the City, and enforcement of the highest priority provisions for the protection of the general health and safety of the community, the Council deems it necessary to take the following actions related to the continuing existence of a local emergency and in support of economic recovery therefrom: Item 9 Packet Page 120 1. Toll the expiration of all discretionary approvals covered by Municipal Code Section 17.104.070 from the declaration of the pandemic emergency (beginning March 17, 2020). 2. Automatically extend the life of all discretionary approvals covered by Municipal Code Section 17.104.070 by one year after the termination of the declared local emergency. 3. Automatically extend the life of all active building permits applications by six months, as authorized by California Building Code Section 105.3.2. 4. Extend the life of all commercial cannabis business operator permits by a fixed period of six months from the original expiration date. If any operator’s permit currently issued from the existing application period is not activated and expires or is deemed abandoned at the conclusion of the period specified herein, the City shall open a subsequent application period for any retail storefront permits available during which applications from any previously qualified or permitted applicant may follow the normal process to submit a new application, along with the applications of any new applicants. SECTION 4. All existing orders of the San Luis Obispo County Emergency Services Director as currently in effect and as subsequently clarified, amended, modified or superseded by subsequent action or order of the County Emergency Services Director, the County Public Health Officer, and/or the County Board of Supervisors, are hereby expressly acknowledged and declared to be enforceable within the City of San Luis Obispo as if directly enacted by the City Council pursuant to San Luis Obispo Municipal Code Chapter 2.24 and shall be enforceable under Municipal Code 2.24.100 until such time as terminated by the issuing authority. SECTION 5. The proclamation of local emergency shall be deemed to continue to exist until it is terminated by the City Council of the City of San Luis Obispo pursuant to a resolution adopted by the City Council of the City San Luis Obispo or its Emergency Services Director. SECTION 6. The City has been undertaking, and will continue through cessation of this emergency to undertake, necessary measures and incur necessary and extraordinary costs, which are directly related to the prevention of the spread of the COVID-19 Virus and are taken in furtherance of: the Secretary of Health and Human Services Secretary’s determination that a public health emergency has existed since January 27, 2020; City Council’s Proclamation of Local Emergency on March 17, 2020 and subsequent proclamations of continuing local emergency the Governor’s Proclamation of a State of Emergency on March 4, 2020 ; the President of the United States’ Declaration of a National Emergency on March 13, 2020; the County Emergency Services Director’s Proclamation of Local Emergency and the County Public Health Director’s Declaration of a Public Health Emergency on March 13, 2020, and related orders, regulations and directions. SECTION 7. During the existence of said local emergency, the powers, functions, and duties of the Emergency Services Director and the Emergency Organization of this City shall be those prescribed by state law, ordinances, and resolutions of this City and by the City of San Luis Obispo Emergency Operations Plan, notwithstanding otherwise applicable procedures, timelines or methods of action and the Emergency Services Director is expressly authorized to take any and all actions in furtherance of emergency powers to address the local emergency. Item 9 Packet Page 121 SECTION 8. A copy of this Resolution shall be posted on all outside public access doors of City Hall of the City of San Luis Obispo and in one public place within any area of the City within which this Resolution applies and personnel of the City of San Luis Obispo shall endeavor to make copies of this order and regulation available to the news media. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing Resolution was approved this _____ day of _____________________ 2020. ____________________________________ Heidi Harmon Mayor ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on _____________________. ____________________________________ Teresa Purrington City Clerk Item 9 Packet Page 122