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HomeMy WebLinkAbout10/05/1999, 4 - Residential Growth Management For Major Residential Annexations (GPI 126-99)0 council ac En as REpo]Z-t CITY OF SAN LUIS OBISPO FROM: Arnold B. Jonas CD Community Development Director Prepared By: Glen Matteson, ,AAssociate Planner M. WnxDak Oct. 5, 1999 SUBJECT: GROWTH MANAGEMENT FOR MAJOR RESIDENTIAL ANNEXATIONS (GPI 126-99) CAO RECOMMENDATION 1. Introduce an ordinance to print, replacing Chapter 17.88 of the Municipal Code with new regulations, to set procedures for phasing development in major residential annexations, consistent with the adopted General Plan. 2. Adopt a resolution establishing a phasing schedule for major residential annexations, based on growth averaging one percent annually over three-year periods, and projected rates of infill development. 3. Initiate consideration of amendments to the Land Use Element and the Housing Element of the General Plan, to make housing that is affordable to moderate -income households (as defined in the General Plan) exempt from growth limits. REPORT IN BRIEF The General Plan says the city's population should grow not much faster or slower than one percent per year. This growth rate is to be achieved by phasing residential development within annexations. Phasing priority is to be determined by housing affordability and open space protection. Staff and the Planning Commission recommend a citywide phasing procedure and schedule to implement the adopted policy, while allowing flexibility for responding to conditions that may not be foreseen when the schedule is first approved. The recommended rules would replace the City's existing Residential Growth Management Regulations, which will expire at the end of the year. The recommended rules would not restrict the pace of housing construction inside the 1994 city limits or in some recent, relatively small annexations. The Planning Commission also recommends that the City Council initiate the process for considering an amendment to the General Plan, to make dwellings affordable to moderate - income residents exempt from the growth limit, as dwellings affordable to low-income residents already are. This change is intended to encourage construction of housing affordable to moderate -income residents, but it could result in a higher growth rate. Hearings concerning this amendment and any resulting change to the growth management rules probably would be held early in the year 2000. i-1 Council Agenda Report - Residential Growth Management Page 2 DISCUSSION General Plan Policy The General Plan provides a comprehensive, long-range vision focusing on preserving community resources and meeting community needs. Since the mid-1970's, the General Plan has targeted a population growth rate not to exceed an average of one percent yearly after 1990. According to the General Plan, "The City's housing supply shall grow no faster than one percent per year, averaged over a 36-month period, excluding dwellings affordable to residents with -very low or low incomes... Before a residential expansion [annexation] area is developed, the City must have adopted a specific plan or a development plan for it. Such plans for residential expansion projects will provide for phased development" consistent with one -percent annual, citywide population growth and taking into account expected in -fill residential development within the 1994 City limits (Land Use Element policies 1.11.2 and 1.11.3). The General plan also says "Though the periods of development of the major residential expansion areas may overlap, the City prefers to complete one neighborhood before beginning another. The sequence of development of the major residential expansion areas will be decided based on the affordability of dwellings, and other public benefits, primarily open space. The area committing to development of the largest number of dwellings affordable to residents with very low, low, or moderate incomes would be developed first, with open space dedication or other public benefits used to decide the order if two or three areas offer substantially the same housing affordability..." (Land Use Element policy 1.11.3). The General Plan clearly intends that residential growth management be achieved through phasing of expansion areas rather than through a citywide queuing, lottery, or scoring system for individual development projects. This policy remains in effect regardless of the status of the current Residential Growth Management Regulations or the Water Allocation Regulations (see "Existing Regulations" below). Decision Context Four major expansion areas identified by the General Plan are now in planning review: Dalidio, Irish Hills (DeVaul), Margarita, and Orcutt (order of listing intends no priority). These areas are shown on a location map (Attachment #7). Staff has drafted growth -phasing provisions for the Margarita Area Specific Plan and has encouraged those preparing the other plans to do likewise. Deciding growth phasing for any one area requires consideration of the citywide context, including the development potential of other expansion areas and infill development. The City Council has the authority to approve specific plans and development plans, and to decide the phasing rules. Council Agenda Report - Residential Growth Management Page 3 Pending Projects The table below shows the estimated housing capacity, processing status, proposed affordable housing performance, and proposed open space dedications for each major residential expansion area (with no significance to the order of listing). Major Residential (no significance to listing order) Expansion Area Processing Status Dalidio EIR, annexation, and prezoning 180 - 200 pending for overall area (focusing dwellings on commercial component); no development plan for residential component has ^been proposed his Hills NorthZ EIR certified; annexation & 270 dwellings prezoning approved by City; plan in review -._..__......._. _.. _. _—.__ Irish Hills South ..development No current application 150riwelling.s_.—._a�------_..__._ Orcutt Area Draft specific plan submitted; EIR 640 dwellings _scope being decided ..._.._.............. Margarita Area Draft specific plan approved by 1,200 dwellings Council May 1998; EIR in preparation; annexations and tract map for part in review Notes for table: iansion Areas Proposed Affordable Housing:' .......................... _... _...,...._..._......... ...... _. lower moderate 9 5% 18 10% Proposed Open Space Protection: open land as fraction of area not determined (part of Prefiimo Creek corridor) 13 5% 25 10% 1 78% (hills) ... ................ .... ...... ..... _..._........... ..... _...... _..—-------- _...------..._._......-- 50% (hills) 32 _ 5% w 64 10% 35% to 40%3 (hill and creek corridors _......_..._...... ............. �. _. 55 5% 110 10% 40% (hills; creek corridors) 1 - Shows number of affordable dwellings and percent of total dwellings, assuming compliance with current City requirements only; subject to change due to revision of the draft plans. 2 - The pending DeVaul Ranch application covers about two-thirds of the development potential estimated for the area labeled "Irish Hills" in the General Plan, the pending DeVaul Ranch application is referred to in this report as "Irish Hills North." 3 - Depends on classification of creek corridors as linear parks or as open space. Owners, applicants, and representatives for these areas are listed in Attachment #4. Previously Approved Phasing Plans The Edna -Islay Specific Plan, adopted in 1982, was the City's first, and to date only, plan for the phased development of a large residential expansion area. That plan contains a rather complex, nine -part sequential phasing. It allowed construction of a maximum annual average of 94 dwellings, over 11 years. Actual development has taken longer (about 18 years), with the last phases just now being developed. tf_�b Council Agenda Report - Residential Growth Management Page 4 Current Regulations The Municipal Code contains Residential Growth Management Regulations (Chapter 17.88). They were adopted in the late 1970's, and amended several times since, to implement the overall population growth policy first contained in the 1977 General Plan update: maximum annual growth averaging two percent in the 1980's and one percent after 1990. According to these regulations, expansion areas that have their own phasing plans consistent with the General Plan are exempt from the regulations' numerical limit on dwellings authorized by building permits. These regulations will expire December 31, 1999, unless extended by Council action. The Municipal Code also contains Water Allocation Regulations (Chapter 17.89), which currently have the effect of relating the pace of construction to the process of obtaining water offsets through retrofitting. Due to a provision in the Water Allocation Regulations, the Residential Growth Management Regulations have been suspended, since the late 1980's, while the Water Allocation Regulations have been in operation. Even if supplemental water supplies eliminate that constraint and the Residential Growth Management Regulations become technically active again, they will become largely irrelevant as development occurs mainly in expansion areas with their own phasing provisions. Program Considerations and Stakeholder Participation Owners and developers of each expansion area generally prefer having the capability to start sooner rather than later, and to use a larger rather than a smaller share of the allowed citywide development. Also, they want flexibility to respond to relatively short-term conditions of demand, financing, and additional water -service capacity. However, they also have emphasized the need for certainty. Large projects typically involve multiyear commitments of resources by developers and lenders, who may have size thresholds or criteria for income streams that favor large increments of development. Developing one expansion area at a time makes it more likely that each area will have enough development within a period to fund the costs of major facilities. This is especially a concern when a large project starts. Sequential development of expansion areas will also minimize the time that a neighborhood is disrupted by building activity. On the other hand, there are concerns with fairness and lack of market competition if one project is the only source of new housing in the city. The Edna -Islay Area and the South Street Area (a 1980's infill specific plan) have shown that large projects can be developed with multiyear phasing and increments of infrastructure, and that market conditions often result in development occurring slower than allowed. In discussions with staff and by testimony at Planning Commission meetings, representatives of the large expansion areas have agreed on the following: • It would be easier to develop the areas if the City did not have phasing requirements; • Given that growth management is a basic part of the community's long-range plan, the recommended phasing approach is workable; • Certainty is important, so everyone can count on the availability of allocations in future years. 4-14 Council Agenda Report - Residential Growth Management Page 5 • The City can anticipate that there will be requests for revisions in future years, maintaining the overall framework but adjusting the distribution among annexation areas, and possibly the projections for infill development and small annexations; • The potential for adjustments is particularly important, so allocations that are not used as originally scheduled can be used rather than lost during times when market conditions encourage construction. A representative of the Dalidio property has said that development of a residential complex for seniors at that site would need to occur as a single phase, which would not be accommodated by the recommended schedule. A representative of the Irish Hills South property has said that they may want to develop sooner than shown in the recommended schedule. Translating Policy into Numbers Number of Dwellings Possible Currently, a population growth rate of one percent per year means 189 dwellings per year, or about 570 dwellings during a 36-month period (assuming no significant changes in the vacancy rate or average household size, which have been very stable since 1980). Since the base population amount increases with time, a one -percent continuous annual growth rate would mean about 208 dwellings in the year 2009, and 215 in 2014. Accommodating Infill "Infill" typically refers to building on vacant sites or adding to partly developed sites, which are essentially surrounded by existing development. General Plan evaluations have classified as infill sites that were inside the city limits when the 1994 update was adopted. The General Plan classifies the recently annexed DeVauI (Irish Hills North) site and the other sites listed in the table above as expansion areas. The currently remaining infill capacity is about 1,000 dwellings. The General Plan encourages infill development, by allowing it to proceed at a pace determined only by developer initiatives, consumer demand, and availability of City services. The General Plan says that residential expansion areas (annexation areas) will be phased, considering an assumed likely rate of infill development. The actual rate of infill development would not be limited by the recommended phasing schedule. A rate of infill development is shown only to establish the likely remainder that is available for allocation among expansion areas. This means it would be possible for citywide growth to exceed one percent yearly over a three-year interval. However, that is highly improbable. The pace of infill construction can be expected to decline as the larger remaining vacant sites are developed. Construction of "custom" houses in approved subdivisions and the addition of apartments to sites with existing houses tend to occur gradually. The recommended phasing schedule projects that infill residential construction during the first three-year period will be a little over half the rate of the previous three years, but about the same rate as during the last nine 4 -5 Council Agenda Report - Residential Growth. Management Page 6 years. The next three-year period is expected to have a further decline. Also, some of the new construction will be offset by demolition .and conversion of existing dwellings. Based on the last nine years, these losses are expected to account for about 30 dwelling_ s in each three-year interval. The recommended annual evaluation of residential construction in relation to the phasing schedule will help avoid unexpected changes in construction rates, by considering recent permit activity as well as planning applications in review that would lead to permit activity. Experiencing faster infill development than originally projected could, but would not necessarily, lead to schedule revisions allowing less development -in annexation areas. Accommodating Annexations Over the citywide build -out period, about -two-thirds of the new dwellings will be in expansion areas: Another intent of the General Plan is to permit development of those areas at a limited and predictable pace, so builders will know the allowed number of dwellings well before putting in streets and utilities and applying for building permits. In responding to the desire to complete one neighborhood. before starting another, it 'is reasonable to interpret "neighborhood" as a development plan or specific plan area, considering the Land Use Element policies on the desired character of residential development. The section above titled "Program Considerations and Stakeholder Participation." outlines some of the issues in deciding how to allocate development among potential expansion areas. The line in the attached phasing table labeled "other annexations" accounts for the relatively small mapped and potential annexations in areas such as Alrita Street, the Miossi Ranch near Cuesta Park, the northwest end of Foothill Boulevard, and State-owned properties on the west side of Highway 1. In approving development plans. for the other annexations, the City can require individual phasing plans. Since none of the `other annexations" have proceeded. to hearings at this time, for simplicity they are shown as a single category in the table. Allocation. Periods Construction activity has peaks and valleys_ , responding to changes in interest rates, consumer confidence, and the short-term relationship of supply and demand, as shown in the "Residential Construction History" (Attachment #3). Limiting construction activity over a short period can keep the peak levels from being achieved, while other factors maintain valleys. The long-term result can be supply falling farther behind demand, increasing housing costs and commuter traffic, particularly when employment growth continues. For this reason, the General Plan refers to residential growth being averaged over "a 36-month period." This implies a moving total, in which the dwellings permitted 36 months ago are deleted as those permitted in the current month are. added. However, it appears to be unnecessarily complicated to shift the interval forward one month at a time, each month. The recommended approach, allocating the numbers of available dwellings for each expansion area in three-year increments, appears to be the best way to address these issues.. During a three-year interval, the dwellings could -be permitted whenever other City requirements are met —all at the beginning, spread over the interval, or all at the end. This gives a Council Agenda Report - Residential Growth Management Page 7 high level of certainty for how many dwellings can be built in the three-year period and flexibility to build at any time during a period. Because the General Plan calls for a three-year averaging period, the slower building rate in the early 1990's is not available to use in longer -term averaging. In the recent time frame, shifting the starting year back does not significantly change the number of dwellings available in the coming one to three years. The activity for 1997 through August 1999 was as follows: Year Dwellings Permitted Demolitions Permitted Net Change Annual Growth 1997 149 -4 145 0.78% 1998 195 -17 178 0.95% Jan - Aug 1999 108 -11 97 0.77% Distributing Allocations Before deciding the current recommendation, staff, the Planning Commission, and landowner representatives discussed several alternatives. To illustrate the range of options, tables were prepared for phasing schedules called "strict sequence," "partially distributed," and "fully distributed." With the strict sequence phasing, development potential was assigned so that one annexation area essentially built out before another started. This would have required the early - starters to use or lose their allocations, while not allowing other areas to start for several years. With the fully distributed phasing, each area would have been under construction throughout the roughly 20-year build -out period, though none could have built a large number of dwellings at once. The recommended phasing, called "partially distributed" in the initial presentation to the Planning Commission, sets a general sequence for the areas, but allows several to be building at the same time. It most closely follows General Plan policies. The recommended allocations are based on the following: • each area providing affordable dwellings in proportion to its total capacity (based on the recently adopted inclusionary housing requirement), with the Margarita Area providing the largest absolute number because it has the highest capacity; • Irish Hills North's providing a large proportion of site area as high quality open space, with the other areas following closely in terms of the open space benefits; • the relative readiness of each area to begin construction, as reflected by its stage in the approval process. The recommended phasing does not allocate dwellings among ownerships within each area. The required specific plans and development plans will address that issue. The owners in each expansion area are required to propose phasing for their area, based on their desires and the practical considerations of extending roads and utilities. 4-7 Council Agenda Report- Residential Growth Management Page 8 Unused Allocations It may turn out that at the end of a three-year period, permits have not been obtained for -an area's allowed number of dwellings. That area may want them carried forward. Other areas may want them. Minimizing the loss of assigned but unused allocations helps meet the Housing Element's goal_ s for housing production. The recommended approach allows administrative (staff) approval for shifts among expansion areas when all affected landowners agree and there would be no substantial difference in provision of affordable housing, necessary public facilities, or open :space protection as a result. Other types of changes are more likely to involve citywide policy issues, including consistency with the General Plan. The following would need Council -approval following a public hearing: • changes to the allowed citywide number of dwellings; • changes to the division between assumed infill and allowed expansion development; • shifting the three-year intervals; • moving allocations among expansion areas when not all affected owners agree. Regardless of the procedure for changing the framework, changes to the content of adopted development plans or specific plans would need public hearings and City Council approval. Developers desire a timely way to make available to large annexations any amount by which the previously assumed number of infill and small -annexation dwellings exceeds those actually permitted (and expected to be permitted based on current trends and project processing). In response, the recommended regulations call for consideration of revising the Phasing Schedule to make any unused infill potential available to expansion areas that are ready to use it (section 17.88.040.D). Developers also said that if one annexation area does not use its allocation within an interval, that area should have first claim on any additional allocation made available through a revision for the- following interval. In response, the recommended regulations call for revising the schedule to carry. that potential forward for the same area, so long as doing so is consistent with the maximum citywide growth rate and does not require unacceptable reductions to. other areas' scheduled allocations (section 17.88.040.E). The alternative of a more mechanical, rule -driven process for reallocating unused potential was considered and rejected, since it would need to be very complex to deal with all contingencies. Setting the initial rules would likely be as open to competing requests as.simply setting a schedule based on three-year intervals and adjusting the schedule every few years. Environmental Review Staff and the Planning Commission have determined that no additional environmental review is required, because the phasing program follows policies that have been adequately evaluated by the Environmental Impact Report for the 1994 Land Use Element Update. As the final decision - making body, the City Council must make a final determination. The attached draft ordinance and resolution affirm the staff and commission determinations. (Separate environmental determinations will be required for each expansion project.) 14-q Council Agenda Report - Residential Growth Management Page 9 Exemption for Moderate -income Rousing The Land Use Element (policy 1.11.2) and the Housing Element (program 6.3.1) exempt from growth limits housing that is affordable to lower -income and very -low-income households. These households earn up 80 percent of the countywide median income. "Affordable" means that such households spend not more than 25 percent of their income for housing. In 1999 these criteria translate into, as examples: • maximum annual income for a household of three - $34,550 • maximum rent for a two -bedroom dwelling - $648/month • maximum sales price for two -bedroom dwelling - $86,375 New housing at these costs typically has been provided by government agencies or non-profit organizations with government support. Expansion areas are required to make five percent of their dwellings affordable to low-income households, or to pay a fee that is used to support affordable housing (Housing Element program 2.3.1). It is unlikely they would provide a higher percentage of dwellings than required. The Planning Commission has recommended considering an exemption for moderate -income housing. Moderate income is defined as 81 to 120 percent of the countywide median income; "affordable" means that such households spend not more than 30 percent of their income for housing. In 1999, these criteria translate into, as examples: • maximum annual income for a household of three - $51,850 • maximum rent for a two -bedroom dwelling - $1,386/month • maximum sales price for two -bedroom dwelling - $155,550 New housing at these costs is typically apartments, manufactured dwellings, or modest condominiums, provided by either non-profit or for -profit builders. Expansion areas are required to make ten percent of their dwellings affordable to moderate -income households, or to pay a fee that is used to support affordable housing (Housing Element program 2.3.1). Considering the proportions of potential dwellings in the Margarita Area and Orcutt Area that would be small -lot, manufactured, or multifamily housing, they could provide a higher than required percentage of moderate -income dwellings. The existing exemption for very -low and lower -income housing and the proposed exemption for moderate -income housing do not, by themselves, increase the build -out capacity of the expansion areas or the urban area. However, the exemption for very -low and lower -income housing can cause the actual average yearly growth rate to be about 1.05 percent (five percent of one percent, added to one percent). Exempting moderate -income housing could cause the actual growth rate to be about 1.15 to 1.25 percent (10 to 20 percent of one percent, added to 1.05 percent). Over a period of years, affordable housing is not likely to be built faster than housing generally, due to practical phasing considerations such as utility extensions, as well as economic forces. Because the affordability of dwellings must be assured for some time after initial occupancy, builders are subject to additional procedural requirements, such as setting up deed restrictions or special management provisions_ Also, it may be more economical simply to pay the fee. As a q -q Council Agenda Report - Residential Growth Management Page 10 result, developers may pay the fee instead of building dwellings. However, when developers construct affordable dwellings concurrent with their projects, a larger number of affordable dwellings are expected to become available, in comparison with the City using developers' fees to assist affordable projects. Exempting moderate -income housing from growth phasing would remove one disincentive for builders to construct affordable dwellings in their projects: they would no longer count toward the limited number of dwellings that could be built at a certain time. The result would be more productive in terms of meeting the City's housing goals. There is a precedent in the Municipal Code for giving incentives to moderate -income housing similar to those for lower -income housing. For several years, the City has had rules that assure developers a density bonus of at least 25 percent, when at least 20 percent of a project's dwellings are affordable to low or moderate income households (Affordable Housing Incentives, Municipal Code Chapter 17.90). This incentive has contributed to only a few affordable dwellings being built. For -profit developers have not extensively used it. The results support the view that making moderate -income dwellings exempt from growth limits will not significantly increase build -out capacity or residential growth rates, but may result in the construction of more dwellings that are affordable. If the Council initiates the General Plan amendments, hearings on them and on any corresponding change to the Residential Growth Management Regulations would be held early in the year 2000. CONCURRENCES Planning Commission The Planning Commission held a public forum July 28 and a hearing September 8. Following the hearing, the Planning Commission voted four to one (two absent) to recommend the procedures shown in the attached draft ordinance and a phasing schedule first presented at that hearing, which used moving intervals. The dissenting commissioner supported implementation of the General Plan's growth policy, but thought the phasing schedule should assume a higher rate of infill development, partly to accommodate potential increases in infill capacity resulting from General Plan amendments. (The infill development shown in the attached schedule reflects build - out of the adopted General Plan.) On September. 22 the Commission, at staff s request, reconsidered its recommendation for a phasing schedule and supported the attached fixed - interval schedule, which was and is staffs recommendation. Also on September 8 the Planning Commission voted three to two (two absent) to recommend that the City Council initiate the process for considering an amendment to the General Plan, to make dwellings affordable to moderate -income residents exempt from the growth limit. The dissenting commissioners were concerned that expanding the exemptions would be contrary to the overall growth policy. If_1d Council Agenda Report - Residential Growth Management Page 11 ALTERNATIVES Options for certain aspects of the program are noted under the Discussion section. If the City Council wants to approve a phasing schedule substantially different from the one attached, staff would recommend giving clear direction but postponing adoption until the next meeting, so staff and all affected owners can make sure that all the implications have been considered. The Council may continue action. There is no mandated deadline. However, expansion -area applicants are anxious to know how the adopted growth -management policies will affect their areas. In the next several weeks and months, individual development plans and specific plans needing to reflect growth phasing will come before the Council for hearings. Also, the current Residential Growth Management Regulations expire on December 31, 1999. FISCAL IMPACT Adoption of the recommended rules will have no fiscal impact. Fiscal -impact studies for the 1994 Land Use Element update concluded that the City could maintain fiscal health with the Proposed amounts and rates of growth. Attachments #1 Draft ordinance replacing Chapter 17.88 of the Municipal Code with new regulations #2 Draft resolution adopting the recommended Phasing Schedule #3 City of San Luis Obispo Residential Construction History graph #4 List of owners, applicants, and representatives for large annexation areas #5 Action update for Planning Commission meeting September 8, 1999 (draft minutes will be placed in the Council Reading File if they are available before the meeting) #6 Summary of recommended ordinance for publication #7 Correspondence received #8 Major annexation areas location map resgrowkarOcO.doc 4 `1 i Attachment #'i ORDINANCE NO. (1999 Series) AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO REPLACING CHAPTER 17.88 OF THE MUNICIPAL CODE, RESIDENTIAL GROWTH MANAGEMENT REGULATIONS (GPI 126-98) WHEREAS, the Planning Commission conducted a public hearing on September 8, 1999, and recommended approval of amendments to the City's Residential Growth Management Regulations; and WHEREAS, the City Council conducted a public hearing on October 5, 1999, and has considered testimony of interested parties, the records of the Planning Commission hearing and action, and the evaluation and recommendation of staff; and WHEREAS, the City Council finds that the proposed regulations are consistent with the General Plan and other applicable City ordinances; BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. The City Council finds and determines that: A. The potential environmental impacts of the proposed regulations have been adequately addressed by the Environmental Impact Report for the Land Use Element & Circulation Element Updates which the Council certified August 23, 1994, and by the Negative Declaration for the Housing Element revision which the Council approved September 20, 1994. B. Implementation of the Land Use Element and Housing Element policies through the proposed regulations will have no adverse impacts and does not require environmental mitigation. C. This determination reflects the independent judgment of the City Council. SECTION 2. Chapter 17.88 of the Municipal Code, Residential Growth Management Regulations, is hereby repealed. SECTION 3. New provisions to be codified as Chapter 17.88 of the Municipal Code, Residential Growth Management Regulations, fully set forth in the attached Exhibit A, are hereby adopted. 4-1 L Ordinance No. Page .2 SECTION 4. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage; in the Tribune; a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after:its final passage. INTRODUCED AND PASSED TO PRINT by -the Council of the City of San Luis Obispo at its meeting held on the ..day of , 1999, on a motion of - seconded by - - and on.the following roll call vote: AYES: NOES: ABSENT: Mayor Allen K. Settle ATTEST: City Clerk 'Lee Price, CMC APPROVED AS TO FORM: Atoe IX resgrow/ord.doc if--13 Ordinance No. Exhibit A Replace Municipal Code Chapter 17.88, Growth Management Regulations, with the following: 17.88.010 Purpose and justification. A. The regulations codified in this chapter are intended to assure that the rate of population growth will not exceed the City's ability to assimilate new residents and to provide municipal services, consistent with the maximum growth rates established in the General Plan. Also, these regulations are to assure that those projects which best meet the City's objectives for affordable housing, infill development, open space protection, and provision of public facilities will be allowed to proceed with minimum delay. B. San Luis Obispo is a charter city, empowered to make and enforce all laws concerning municipal affairs, subject only to the limitations of the City Charter and the Constitution and laws of the State. Regulation of the rate of residential development is a reasonable extension of municipal authority to plan overall development, in furtherance of the public health, safety and general welfare. C. According to the General Plan Land Use Element, the City should achieve a maximum annual average population growth rate of one percent. The reserve of developable land within the city and the capacity of proposed annexations could sustain growth rates which would exceed the objectives of the General Plan. D. General Plan policies and the annexation -area Phasing Schedule required by these regulations reduce the likelihood that any property within the city might be deprived of reasonable development entitlements through the operation of these regulations. E. The growth rate policies of the General Plan reflect the City's responsibility to accommodate a reasonable share of expected state and regional growth. F. To avoid further imbalance between the availability of jobs and of housing within the city, the General Plan also manages expansion of growth -inducing activities. The burdens of growth management are not being placed solely on the residential sector, since it largely responds to demands caused by other sectors. G. Considering the likely levels of housing demand and construction throughout the housing market area, nearly coinciding with San Luis Obispo County, these regulations are not expected to affect the overall balance between housing supply and demand in the market area. These regulations will not impede and may help meet the needs of low-income households. ,9 -14 17.88.020 Allocations. A. The City Council shall, by resolution, adopt a Phasing Schedule that allocates potential residential construction among annexation areas, consistent with the General Plan and with these regulations. B. The limitations on residential development established by these regulations apply to new residential construction within certain areas that have been annexed to the City or that will be annexed to the City. Development in such areas is subject to development plans or specific plans, which shall contain provisions consistent with these regulations and with the Phasing Schedule. C. For locations which the Phasing Schedule shows as "allowed," allocations shall be implemented by the timing of issuance of building permits. D. These regulations shall not limit the issuance of building permits for locations which the Phasing Schedule shows as having an "assumed" rate of construction. E. Dwellings affordable to residents with very -low or low incomes, as defined in the City's General Plan Housing Element, shall be exempt from these regulations. F. It shall not be necessary to have dwellings allocated for a particular time interval or location to process and approve applications for General Plan amendment, zone change or other zoning approval, subdivision, or architectural review. 17.88.030 Adjustments to Allocations Requested by Property Owners. Upon verified written request by each owner for whom the timing of property development would be affected by a proposed change (either hastened or delayed), the Community Development Director may adjust the allocation of dwellings among expansion areas shown in the Phasing Schedule, so long as the total number of dwellings for all expansion areas within an interval does not change. The Director shall approve such requests upon determining that there would be no substantial difference in provision of affordable housing, necessary public facilities, or open space protection as a result of the adjustment. 17.88.040 Periodic City Council Review and Consideration of Revisions. A. The Community Development Department shall provide status updates to the City Council concerning implementation of these regulations, coordinated with the Annual Report on the . General Plan. The status update will describe actual construction levels and any adjustments to allocations that have been approved by the Director, and may include recommendations for revisions. B. Following consideration of the annual report, or at such other times as it deems appropriate, the City Council may revise the Phasing Schedule. Such revisions shall be consistent with the General Plan. City Council approval shall be required to do any of the following: 1) Change the total number of dwellings that may be permitted within an interval; 2) Change the number of dwellings assumed for demolition or infill development or small annexations, or allocated in total to expansion areas; 3) Reduce the number of dwellings previously allocated to a certain expansion area, when there is not verified written approval by each affected owner; 4) Shift the years covered by intervals. C. Before approving a revision, the City Council must conduct a public hearing. Notice of the hearing shall be provided at least ten but not more than 30 days prior to the hearing, by publication in a newspaper of general circulation in the city and by first-class mail to each owner of property potentially affected by a delay in building permit issuance as compared with the schedule in effect at that time. Owner information may be obtained from the County property assessment role, or from other sources which the Community Development Director determines will provide complete and current information. Failure of an owner or owners to receive notice shall not invalidate any duly adopted revision. D. For in -city development and for minor annexations, the annual report shall compare the actual number of permitted dwellings with the assumed rate of permit issuance. When the previously assumed number of in -city and small -annexation permitted dwellings exceeds those actually permitted, and expected to be permitted based on current trends and project processing, the City Council shall consider revising the Phasing Schedule to make the difference available to the current phases of large annexations. E. If an annexation area does not fully use its allocation within the previously indicated interval, the City Council shall consider assigning the unused potential to that same area in future intervals. It is the intent of this part to encourage completion of neighborhoods that have been started, provided that doing so does not cause the allowed citywide growth rate to be exceeded and further provided that the allocations previously assigned to other annexation areas will not be reduced without the approval of the affected landowners. resgrowlord_exhb.doc 41 -it, Attachment #2 RESOLUTION NO. (1999 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING A RESIDENTIAL GROWTH MANAGEMENT PHASING SCHEDULE (GPI 125-99) WHEREAS, the General Plan contains policies concerning a desirable maximum population growth rate, based on an acceptable pace of change, the provision of adequate public facilities and services, and mitigation of environmental impacts; and WHEREAS, Chapter 17.88 of the Municipal Code, Residential Growth Management Regulations, as amended by concurrent action of this Council, calls for establishment of a Phasing Schedule for development in annexation areas; and WHEREAS, the City Council conducted a public hearing on October 5, 1999, and has considered testimony of interested parties, the records of the Planning Commission hearing and action, and the evaluation and recommendation of staff; BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The City Council finds and determines that: A. The potential' environmental impacts of the proposed Phasing Schedule have been adequately addressed by the Environmental Impact Report for the Land Use Element & Circulation Element Updates which the Council certified August 23, 1994, and by the Negative Declaration for the Housing Element revision which the Council approved September 20, 1994. B. Implementation of the Land Use Element and Housing Element policies through the proposed Phasing Schedule will have no adverse impacts and does not require environmental mitigation. C. This determination reflects the independent judgment of the City Council. SECTION 2. The Phasing Schedule 'that is fully set forth in the attached Exhibit A is hereby adopted. Resolution No. Page.2 On motion of , seconded by , and on the following roll call vote: AYES: - NOES: .ABSENT: the foregoing:resolution was adopted thus _ _. day of , 1999 Mayor Allen K.. Settle ATTEST: - City Clerk Lee Price, CMC " • • • • / • • resgrow/ccres.doc 4w c d 0 Cc C � O $ ca W O Im C C7 . !0 co a d O Z C 0 0 co a) w CD P- LoNtON NN O w 1- O N O r N r co N C4 'r O N r C7 O O O r O CD a C)o r N N a r N ' O O O c c (V = 0 vi 000000CD 0LO 0 a) 7 3 () a Z 0) N C) r C 0 0 0 0 a) cc c r o M (r-, E O N E c O o a) ns 000000a Oti It M > CL EC dT 0 O co [h O 10 O N E rn o. r r r O X c O c �_ E Eo o 75 w i. N m o c a rn 0 dchmO 0 0 0 CO! 0 0 o 0 o 0 r 0 M o I r O 4) 0 o _ m N r r N N (D r m% 3 2 a) O C O O N W - NM+CO r O N O C- A C c E o m 0 3 N a a 0 N 0 N 0 E '~ O CCr? I LLD CV N (D O = o c=i � a3 O r r r W rn t ? 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Location Owners Applicants & Representatives Dalidio Area : Thelma F. Peroui, trustee ; Cannon Associates (Andrew Merriam) c/o Ernie Dalidio Irish Hills North : Bank of America, trustee ; DeVaul Ranch LLC (Hamish Marshall) John Wallace & Associates Investec (John Schuck and others) Carol Florence Roger Lyon Irish Hills South ; Margaret R. DeVaul, trustee ; Richard J. Komorowski Margarita Area : Eileen Damon, trustee ; Craig Cowan c/o Dolly Garcia John French Siena Gardens of S.L.O. (Richard ; William R. Dyer DeBlauw) : David Watson Kitman 1 (Bob Kitamura) : Westland Engineering John King Serafino J. Martinelli, trustee Orcutt Area Jeanne A. Anderson Cannon Associates (Andrew Merriam) Central Coast Mortgage Company Righetti-Parsons Family (Michael Blaser) i Dr. Ernest Jones Leo M. & Margaret Evans Chuck Pratt i Paul E. Fiala Paul & Felicitas N. Garay Gamey & Vicki Hall Jeanne Helphenstein = Phyllis Imel Don & Beverly Johnson Dr. Emest Jones Josephine E. Maddalena, trustee i Nicholas Muick i Barbara Parsons ' Sandpiper Investments (Chuck & Marrion Pratt) gmattesolresg rowlparties.doc Attachment #5 MEETING UPDATE SAN LUIS OBISPO PLANNING COMMISSION Council Chamber of City Hall 990 Palm Street San Luis Obispo September 8, 1999 Wednesday 5:30 p.m. CALL TO ORDER/PLEDGE OF ALLEGIANCE ROLL CALL: Commissioners David Jeffrey, , Mary Whittlesey, Allan Cooper, Alice Loh, Stephen Peterson, Charles Senn and Chairman Paul Ready Commr. Cooper was absent. ACCEPTANCE OF AGENDA: The agenda was accepted as written. MINUTES: Minutes of July 28, 1999 were approved as amended. PUBLIC COMMENT: No member of the public addressed items not on the agenda. PUBLIC HEARINGS: 1. 1720 Johnson Avenue: ER and TR 4-99. Request for tentative map approval creating 10 lots for a condominium project, and environmental review; R-2 zone; Steve Sicanoff, applicant. (Continued from August 25, 1999) On a 3 2 vote (Commr. Cooper was absent and Commr. Jeffrey abstained due to a potential conflict of interest because he owns property in the area), the Commission recommended Council approval of the tentative map and mitigated negative declaration as recommended by staff in the supplemental staff report with the condition that a motorized gate be located at the Fixlini driveway (for use by residents and emergency vehicles) subject to the approval of the Community Development Director. Discussion focused on the outcome. of the project if the easement through the school district property is not obtained and how this property could be redesigned to allow emergency access off of Johnson Avenue. Three neighbors spoke against the project citing traffic, access and parking impacts. r-1\ 2. City -Wide. GPI 126-99; Residential Growth Management Program - Phasing Expansion Areas; City of San Luis Obispo, applicant. Commissioners voted four to one (Commr. Cooper absent and Commr. Ready stepping down due to a potential conflict of interest) to recommend the procedures recommended by staff and a phasing schedule presented at the hearing, which would use a moving interval. Dissenting Commissioner Peterson supported implementation of the General Plan's growth policy, but thought the phasing schedule should as*QI2 Planning Commission Update Page 2 higher rate of infill development, to avoid possibly exceeding the target growth rate.. Also, the Commission voted three to two to recommend that the City Council initiate the process for considering an amendment to the General Plan, to make dwellings that are affordable to moderate -Income residents exempt from the growth limit. Dissenting Commissioners Loh and Peterson were concemed that expanding the exemptions would be contrary to the overall growth policy. Testimony was given by representatives of the: Margarita Area - Saw the procedure as workable, but wanted more time to consider the moving -interval schedule; the potential for adjustments is particularly important, so allocations that are not used as originally scheduled can be used rather than lost during times when market conditions encourage construction; the City can anticipate that there will be requests for revisions in future years, maintaining the overall framework but adjusting the distribution among annexation areas, and possibly the projections for infill development and small annexations; Irish Hills !North (current DeVaul Ranch application) - saw the procedure as workable and supported the moving -interval schedule; Irish Hills South Area - the owners may want to develop sooner than shown in the recommended schedule. 3. 11855 Los Osos Valley Road. TR and PD 102-96; Request to subdivide a 222 acre DeVaul Ranch site to allow for the development of 146 single-family and 122 multi -family dwellings, and a 3 acre park; and request for a planned development zoning for flexible development standards in the R-1, R-2, and R-3 zones; DeVaul Ranch, LLC, applicant. On a 6-0 vote (Commr. Cooper was absent), the Commission recommended City Council approval of the requested PD rezoning and vesting tentative tract map. The Commission generally liked the project and supported the applicant requested variations to normal development standards given the many project benefits (including the 184 acres dedicated to the City as open space). Discussion focused on the twenty some issue areas identified by staff in the staff report. The Commission discussed each of these items and provided staff with a recommendation. . Finally, the Commission acknowledged that had this been the beginning of the project design process, the Commission may have recommended more significant changes to the overall project design. COMMENT AND DISCUSSION: Given the lateness of the hour, an agenda forecast was not provided and Commission discussion did not take place. /4-23 Attachment #6 [DRAFT SUMMARY] ORDINANCE NO. [ . ] (1999 SERIES) AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO ADOPTING NEW RESIDENTIAL GROWTH MANAGEMENT REGULATIONS On October 5, 1999, the San Luis Obispo City Council voted [ to ] to introduce Ordinance No. [ ], which will replace the current Residential Growth Management Regulations that expire at the end of the year with new regulations, to implement the adopted General Plan. Basic features of the new regulations are as follows: The pace of residential construction 'inside the 1994 city limits and certain minor annexations would not be affected by the regulations. In large annexation areas, the pace of residential construction would be limited, so that citywide housing growth would not exceed an average of one percent per year, considering projected construction in the unrestricted locations. Housing affordable to low-income households in any location would be exempt from the limits. Assignment of allowed construction to particular large annexation areas would be accomplished by a phasing schedule, approved by a separate resolution. The ordinance would enable staff to approve certain adjustments to the phasing schedule's allocation of dwellings among the large annexation areas. Other revisions to the phasing schedule would require Council approval following public hearings. The Council must vote again to approve this ordinance before it can take effect. That action is tentatively scheduled for October 19, 1999, at a regular City Council meeting to begin at 7:00 p.m. in the Council Chambers of City Hall, 990 Palm Street. Copies of the complete ordinance and the companion resolution are available in the City Cleric's Office, Room No. 1 of City Hall. For more information, contact the Community Development Department at 781-7172. Lee Price, City Clerk -aq } Richard J. Komorowski AttaChment #7 Land Development 484 Mobil Avenue, Suite 19 . Camarillo, CA 93010 • Tel: (805) 585-3377 • Fax: (805) 987-5068 September 21, 1999 Glen Matteson Community Development Department City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401-3249 RE: Irish Hills South Dear Mr. Matteson: As I stated at the September 8th Planning Commission Meeting, we intend to submit applications for annexation and a tract map for the remaining 13 acres of the DuVaul Ranch by year end. Assuming an 8-12 month time line, we expect to build the first phase in the spring of 2001 and would therefore request a distribution of allocations that would allow 50 units in the 1999-01 period and 100 in the 2002-04 period. On a worse case critical path, we would start construction in the spring of 2002 and would then request 150 units the 2002- 04 period. Obviously this timing puts us well ahead of the phasing schedule indicated in the Residential Growth Management Plan. Since the General Plan shows all of Irish Hills as a single expansion area, I don't understand why the Irish Hills North Project got a full distribution of allocations in the current two phasing periods and Irish Hills South gets nothing until 2005 and then only one-third of its allowed units. I request that allocations for our project be distributed in the same periods as Irish Hills North. Perhaps some of their allocations and /or allocations from the Margarita Area can be redistributed. Thank you for your consideration. Please include this letter in the City Council packet when they meet to discuss this item. Thank you. Yours y, Richard J. Komorowski RECEIVED SEP 2 � 1999 IC�ITY OF SAN LUIS OBISpo if ,,... 15 Attachment #8 Dalidio Irish Hills Orcutt /1%/Urban Reserve Line city of san luis obispo OResidential community development department Commercial & Industrial Use 7o Be Determined N q-a4 MrrTING AGENDA-wL,*uU waI 60. a 11-`5- y ITEM # • communication item September 30, 1999 TO: FROM: SUBJECT: City Council Jan Howell Marx Scenic Highway Dedication 09OUNCIL ErCDD DIR 00 ❑ FIN DIR Fly CHIEF G®'AC❑ RNEY W DIR KlORIO ❑ POLICE CHF ❑ EMT ❑ REC DIR ❑ UTIL DIR p ❑ PEAS DIR On September 29, 1999, Caltrans dedicated Highway One as a Scenic Highway from the City of San Luis Obispo city limits to the Monterey County Line. This section was designated as a potential candidate in the 1960s, but only now has become a reality. I was honored to accept the designation on behalf of the City at the dedication ceremony and to help unveil the first Golden Poppy sign. Also attending were Roger Anderson, Mayor of Morro Bay, State Senator Jack O'Connell, State Assemblyman Abel Maldonado, former Supervisor Bud Laurent and a number of high level Caltrans officials. The week of October 4, 1999, a large designation sign will be placed near the intersection of Highland and Highway one indicating that our city is where the scenic highway begins! Soon the Golden Poppy signs will be going up. Caltrans officials indicated that they and SLOCOG will apply for the highway to have National Scenic Highway status soon. Attached you will find a booklet explaining benefits of the Scenic Highway program in greater detail. The scenic highway designation opens up special grant and funding opportunities. I hope that the City will take full advantage of the benefits the program offers as we continue our effort to preserve open space around the City. JHM:ss 01 p-, U— " Attachment A4 U c: Public Works Community Development Administration RECEIVED 0 C T _. 1 1999 SLO CITY CLERK Ml .NG AGENDA DATE /o -5 " 9 ITEM! # communication -item September 28, 1999 TO: FROM: SUBJECT: C cil Colleagues Jan Howell Marx ❑ CDD DIR 0 FIN DIR ❑ FIRE CHIEF [FS�CAO ❑ PW DIR ERWORIG ❑ POLICE CHF GMT TEAM r 0 REC DIR �_, 0 UTIL DIR O PEAS DIR ❑ Communication Item: Trip to Washington, D.C. As you may know, Congresswoman Lois Capps is hosting a "San Luis Obispo County Day in Washington, D.C." on Tuesday, October 26, 1999. This event provides an opportunity to meet with top policy makers on such critical issues as business, education, technology, and agriculture. There will also be a chance to share information about San Luis Obispo and the issues we are facing, such as Internet sales tax. I would like to attend these meetings in Washington and offer to serve as the representative of San Luis Obispo. Council Policies & Procedures (Section 2.5 - Special Expenses) states the following: For occasions when the Mayor and./or a Council Member is designated by the City Council to represent the City at special meetings, reimbursement shall be made from an unallocated Travel Expense Account. (Res. 8776) Acting in this capacity would eliminate the necessity of using my individual council member budget —which could preclude my participation in upcoming conferences and professional development for the remainder of this year. Airfare and hotel (two nights) expense would be approximately $1,200. I believe this is an important opportunity for our city and hope you will grant this request. With your concurrence, formal Council support can be given on the October 19, 1999 consent agenda. Thank you for your consideration. As RECEIVED SEP 2 8 1999 SLO CITY CLERK a ][M,n 0ASSOCIATES 646 I Nt E-R,S PLANNERS' SURVEYORS. ,364'PACIFIC STREET SAN Luis biaisPo,'CA '93401 :805-:544-7407 FW805'_-544,3863 eF MIC.HAE.L F. CA:.Nmorq, PE ANDREw G. WRRIAM, AIA7 AICP DANJEL S. iHUTCH.INSON, LS Oct6ber;5 11999 City Council Members c/o,01eh Matteson,, Associate Planner Planning Department City, of San Luis Obispo RE:: Growth Man:tgemeirit46t..,M4j6r Residentialt Annexations: Dear Council' Members: I. have;participatedkat,several m eetifigand 9 hearih s.,g.thie planning commission on .. thi$:sti6jectas,thd;ighn-0ioAlplAiiiibe�for:th6OrcuttExpansion, Area and,theDiLffii6, Annexation. -Given the confines 6fthe grpwffi, limitations, -.of the: General.Plan andtherelative-' -, fl! presented in the -staff revori. status:of the-various.-majonannexationsI fdi dated' October 1994.1is til-ik eop.irfiuffi.that:dan-ibe-ddvdldbdd-"Mthddkddfn§tM6eg, 1t*.qVid.evthe City"z!1way ofrr�eetjtg,'theon- 6 percentannualgtd—Wth file while .givi�k lan(towners'and d6vel61riiers a reasonable., level of certainty �f ... � . ­ .,-:n ­ - - developers I . ­. ___. level ­ . y financing and construction. 'Th�d,,61!e�-m-"'dnt�df-flCxibilitVd6s'cr-ibe;'d"m.-the.:!staff-.report :;is, _very :desirable sijac'e�construct.i6ni's"cift,tii�giibj&dt.t6l'ggetee6iioffiictrdn6-- Lsup e.. port the effort to.amend, th' General Plan -to exempt modefdib ffiddin-d ,housing. Given th6generaLshortage of housing -,m,-t'eh' Cit., we are findiiig that;. even .modest housing 1s gqt4g.4 ta,rel'atiVeIv-11i &h;sdles.vEilue. TheJow and low- m6&rate-affordablehbusing requir.emenfs'still.li'eaVeg,,g4p�,aii,theemoderate level in; the housing product that-Ifie'City'should be providmif g, :gendr-al-,,'Pl'a'h'<amendment:cbWd' address ;this issue without encourage. sprawl of extension ofour city b.oufid.ane.s., since in would onlyapply toihe,ateas:already designated for housing. Sincerely, Andrew,G Merriam, AICP Principal; Director of Plannimg 9"319/Agemicy/growth iingint 9E Q, E 1. V E Q 5 1999 LO'CITY CLERK V PROVIDING SERVICi-SINCE, 10,