Loading...
HomeMy WebLinkAbout12/14/2004, PH1 - HOUSING ELEMENT AMENDMENTS council 12_Ia-oa j ac Enna REpoRt CITY OF SAN LUIS OBISPO FROM: John Mandeville,Director of Communit elopment Prepared By: Jeff Hook, Senior Pl SUBJECT: HOUSING ELEMENT AMENDMENTS CAO RECOMMENDATION As recommended by the Planning Commission, adopt a resolution amending the General Plan Housing Element. DISCUSSION Overview On March 3e , Council adopted the Housing Element Update. As required by State housing law, staff submitted the adopted element to the State Department of Housing and Community Development (HCD) for review. Recently, after several months of coordination with City staff, HCD has determined the Housing Element meets State law, provided that additional information and clarification is included by formally amending the Housing Element. HCD has assured the City that once the amendments are adopted and resubmitted, HCD staff will "certify" the City's Housing Element as being in compliance with State law. If the City achieves certification by the end of this year, San Luis Obispo will qualify for a Workforce Housing Reward Grant. Advisory Body Recommendation The Planning Commission is scheduled to review the proposed amendments at its December 8`s special meeting. At the time of this writing, the Commission had not yet reviewed the amendments. The Commission's action and comments will be forwarded to the Council as soon as they are available. Coordination with HCD The City received HCD comments on the adopted Housing Element on August 2°d. Staff responded with a detailed letter (Attachment 1), including proposed changes (Attachment 2) to address HCD comments. The proposed changes — or "amendments" -- are contained mainly in Appendix C—Housing Constraints and Resources. Minor graphic and editorial changes are also being made to Chapters 1-4 and the Appendices for clarity and visual interest, as the Council was assured during the adoption hearings. The changes in Appendix C provide additional background information or clarification to meet State requirements; they do not change adopted policy or programs. On November 12'', HCD notified the City that the draft revisions address the statutory requirements described in HCD's previous review (Attachment 3). The letter states our Housing Element will be in full compliance with State housing element law once it is adopted with the revisions and resubmitted to HCD. Although relatively minor, the revisions do constitute an - t. Draft Housing Element Update,March 30,2004 Council Meeting Page 2 amendment to the General Plan and require Planning Commission review and City Council action to take effect. Timely action is essential if the City is to be eligible for the 2004 Workforce Housing Reward Program. Workforce Housing Reward Program Grant The Workforce Housing Reward Program (WFH) is a relatively new State grant designed to encourage cities and counties to approve affordable housing for low-income households. It rewards communities retroactively based on the number of affordable, low- and very-low income dwellings that received final land use approval and building permits during the grant year (calendar year 2004). WFH funds are not awarded on competitive basis — all cities and counties that meet eligibility requirements will be funded to the extent state funds are available. A total of $23 million is available in 2004. Staff estimates the City will be eligible for$60,000 to $100,000 in grant funding in recognition of affordable dwellings recently approved and built in San Luis Obispo. Grant applications are due in March 2005 and award announcements are anticipated in June 2005. To be eligible for WFH funding, the City must have a State-certified housing element by December 31St, 2004. Proposed Amendments HCD's questions and comments focused on housing needs, resources and constraints. The State's main concern was that the Housing Element identify adequate sites and/or capacity to accommodate the City's share of the regional housing need (RHNA) for all income levels. As explained in staff's letter (and in Appendix D of the adopted Element), the City's residential capacity exceeds its RHNA number as reflected in the Quantified Objectives, Chapter 3. Consequently, the City meets State law in this regard. Note that the City is not responsible for actually providing the number dwellings shown in our Quantified Objectives, but rather, to show that the City has enough appropriately zoned land to accommodate our RHNA allocation for lower-income households. HCD now concurs that the Housing Element adequately does that. The changes are of such a minor, non-substantive nature that the Director has determined they do not change the project description or the previous negative declaration of environmental impact approved by Council (Resolution No. 9543, 2004 Series). Thus, no further environmental review is required. What's Next Following Council's action, staff will forward the Council's resolution adopting the amendments, and the revised Housing Element, to HCD. According to Don Thomas, the HCD staff member who has worked closely with the.City, we could then anticipate receiving written state certification by December 31st, 2004. ATTACHMENTS: 1. City Response to HCD's August 2, 2004 Comments on the Adopted Housing Element 2. Draft Changes to General Plan Housing Element, Appendix' C. 3. HCD Letter,November 12, 2004 4. Draft Council Resolution Council Reading File: Draft Amended 2004 Housing Element WHOOKViousing Element Update\CARI2-14-04HEamend.doc 1 _ � Attachment 1 A city of san Luis OBISPO August 31, 2004 Department of Housing and Community Development 1800 Yd Street, Room 430 Sacramento, CA 95814 Attnc Don Thomas, Housing Policy Analyst Subject: August 2,2004 Review of San Luis Obispo's Adopted Housing Element Don: Thank you for the constructive comments on San Luis Obispo's adopted housing element, provided in your Department's letter of August 2nd, as well as the many hours you've spent helping the City achieve certification. It is truly appreciated. I've reviewed the letter and as we discussed on July 28th, have prepared draft changes to the housing element for your "informal" review, along with a"response to comments" which notes changes and clarifications. The proposed housing element changes are attached. I believe they resolve the remaining issues identified in the letter. The changes provide additional background information or clarification to meet state requirements; they do not change adopted policy or programs. Once you've had a chance to review this, let's review and finalize the changes. I will then revise the Housing Element and resubmit it for certification. . This effort culminates an unprecedented, two and a half year community effort involving some 33 public meetings. We believe that effort has produced an innovative and comprehensive document that will provide the tools the City needs to address its housing needs. In addition to undergoing extensive public review, the Draft Housing Element originally reviewed by HCD was significantly revised to address community suggestions and comments and to respond to your agency's comments. The result, we believe, is a housing element which will significantly expand housing opportunities for all income groups and which meets state housing law. Please contact Jeff Hook at(805) 781-7176 if you have questions or need additional information. Sincerely, Michael Draze,Deput for Community Develop nt 1 HCD Review of Augur. ., 2004 Page 2 Attachment 1 Attachments: 1. Response To Comments 2. Excerpts from Housing Element showing proposed revisions Previously Sent: Residential Development Capacity survey, Residential Growth Management Ordinance and Residential Phasing Plan, and Draft Margarita Area M./housing demcnt updawbcdlena8-31-04 HCD Review of August 2004 '-? Attachment 1 ge 3 RESPONSE TO COMMENTS FROM HCD'S AUGUST 2,2004 REVIEW (HCD comments are paraphrased below, followed by City responses in italics. Page numbers refer to the Housing Element adopted March 30, 2004, as amended in draft.) A. Housing Needs,Resources,and Constraints 1. Permit Processing Procedures: While the adopted element now describes the typical review and approval process for single-family uses, it still must describe and analyze the approval process for multi- family and mixed use developments, including level of review and an indication of the typical conditions of approval that are imposed on multifamily projects. Response: Refer to revised page 119, paragraph g). This section has been expanded to address the review process for multi family and mixed use developments. 2. Residential Growth Management Regulations: The element was not revised to address this requirement. The element still needs to describe how the City's growth management provisions are implemented and assess the potential impacts on the costs and supply of housing. Response: Refer to revised page 106, paragraph d). This section has been expanded to describe how the growth management system operates, including how permits are allocated whether unused permits "rollover" to future years, and the impact of the phasing plan. On page 108 the Element explains why growth management regulations will not prevent the City from accommodating its share of the RHNA, and the proposed revision further clarifies this point. 3. Housing Constraints for Disabled Persons: The element indicates the City enforces the ADA, is committed to removing barriers, and uses CDBG funds to assist developers of projects that are accessible to persons with disabilities. The Element still needs to include an analysis of governmental constraints on housing for persons with disabilities and describe the City's procedures for approval of group homes, ADA retrofit efforts, and an evaluation of the zoning code for ADA compliance or other measures providing flexibility in the development of housing for persons with disabilities. Also indicate whether City has taken steps to modify the definition of a"family" unit so as not to preclude the establishment of group homes in residential zones and whether City imposes a fee for "reasonable accommodation" requests and whether these requests are limited to the person with the disability. Response: Refer to revised page 117, section entitled "Americans with Disabilities Act." This section has been expanded to address the issues listed above. 4. On-and Off-Site Improvements: While the cover letter that accompanied the submittal of the adopted element includes a listing of on- and off-site improvement requirements for infill and expansion areas, this information was not incorporated into the element. As discussed, this information should be included in the element. Response: Typical on- and of -site improvement requirements have been added on pages 116 and 117 under "Site Improvement Requirements." HCD Review of August-.r.,'2004 Page 4 Attachment 1 B. Housing Programs 1. To identify sites to accommodate the City's share of the regional housing need for all income levels, the following programs still need to be revised and strengthened: A. While the inventory of sites listed in the Residential Development Capacity Survey is sufficient to accommodate the City's total regional housing need, there is a shortfall of appropriately zoned and suitable sites to accommodate the new construction need for lower-income households of 2,239. State law requires local governments to show they have enough appropriately zoned land to accommodate their RHNA allocation for lower-income households. Vacant or underdeveloped sites with adequate services and zoning to allow at least 18 dwellings per acre are counted toward meeting the City's quantified objective for new lower-income housing. The City's Quantified Objective for new lower-income housing, as shown in Table 7, is 2,167 dwellings (1,390 very-low plus 777 low- income dwellings). In San Luis Obispo, ten zones allow residential densities of at least 18 dwellings per acre. Table 1 below lists those zones, the amount of vacant and underdeveloped acreage available, and the maximum number of dwellings possible in each zone. Residential acreage figures include Margarita Specific Plan Area, slated for annexation in 2005. Table 1. Potential Maximum Number of Lower-Income Dwellings, 2004-20091 Zone Type Allowed Density, Acres Max.No.of Total Density Units/Acre Vacant Under- Dwellings/Acre' Dwelline Utilized= R-2 Medium Density 12 47 20(10) 18.75 1,069 Residential R-3 Medium-High 18 10 6(3) 28 364 Density Residential R-4 I-Tigh Density 24 2 8(4) 37..5 225 Residential O Office 12 22 10(5) 18.75 253 C-R Retail- 36 1 8(4) 56.25 141 Commercial C-C Downtown 36 0 10(5) 56.25 141 (C-D) Commercial C-N Neighborhood 12 3 2(1) 18.75 38 Commercial C-S Service- 24 24 28(14) 37.5 713 Commercial C-T Tourist- 12 7 29(14.5) 18.75 202 Commercial M Manufacturing 24 30 24(12) 37.5 788 Total 3 934 HCD Review of August 2,2004 Page 5 Attachment 1 Footnotes: 1. Table 1 shows maximum possible numbers of actual dwellings—not"density units"based on zones, acres,and maximum allowed residential densities. They assume vacant and underutilized sites will be developed to the maximum extent allowed by law. The numbers do not,however, include density bonuses. Projects that include at least 20% of the dwellings for very-low, low-or moderate income households are eligible to receive a 25%density bonus by right. 2. Figures for underutilized parcels conservatively assume a 50% redevelopment potential;that is,that y2 of the site area can be fully redeveloped at the maximum allowed density. 3. Maximum number of units per acre assumes a mix of studio, 1-bedroom and 2-bedroom units averaging 0.64 Density Units per dwelling. Maximum number of dwellings is derived as follows: (allowed Density Units per net acre)(total acres)/0.64. Use acreages in parentheses to reflect 50% site utilization for underutilized parcels. 4. In non-residential zones,the maximum number of dwellings is reduced by 50% to allow for mixed residential and commercial uses. As shown in Table 1 above, the maximum number of dwellings that could be developed at densities of 18 dwellings per net acre or greater equals 3,934 dwellings. This significantly exceeds the City's quantified objective for very-low and low income housing. This number differs from residential capacities listed in Housing Element Appendix D because it is based on the maximum number of dwellings possible under current zoning (as opposed to site-based estimates), assumes a shift to higher average residential densities in multi:family and mixed-use developments, and assumes 10 acres of underutilized land in the C-D zone (formerly C-C) zone. The previous survey identified only 1 acre of underutilized C-D zone land, although most lots in the 46-acre zone could accommodate significantly more development under current zoning standards. B. According to Table 2 in the Survey, sites in the C-C; C-R, and R4 zones appear appropriate to accommodate the City's regional housing need, but these sites only have a maximum capacity of 389 units. This leaves a remaining need of 1,850 for lower income units. As noted above, ten City zones can accommodate residential densities appropriate for lower- income housing, not just C-C, C-R, and R-4. It is the City's intention through Housing Element programs to broaden the range of housing types, tenure and cost by promoting more compact, higher-density housing, and mixed-use, workforce housing in commercial zones. Also note that Table 2 in the survey lists Density Units. It's important to differentiate between Density Units and Dwelling Units. In San Luis Obispo, development capacity is typically stated in "Density Units." One density unit is equivalent to a two-bedroom dwelling. A studio apartment is equivalent to 0.5 density unit, and a one bedroom unit is equivalent to 0.66 density unit. Dwellings with three or more bedrooms are equivalent to two density units. To determine the maximum number of dwellings that could be built, the maximum number of Density Units allowed is first determined based on zone, site area and slope. Density Units are then divided by the total density unit equivalencies for the types of.units to be built. For example, 2 Density c — � i 1 HCD Review of August-.&�;2004 Attachment 1 Page 6 Units would accommodate one 4-bedroom dwelling, or two 2-bedroom dwellings, or three 1- bedroom dwellings, or four studio dwellings, or any combination of unit types not exceeding 2 Density Units.. C. To demonstrate City can provide development opportunities for its remaining regional share of lower-income households, Programs 6.3.5 and 6.3.6 should be expanded and strengthened, describing the specific acreage of high-density zoned land to be designated within the Margarita and Orcutt Specific Plan areas along with minor annexations listed in Tables D-3 and D-4. When potential dwelling units are considered, there is sufficient, appropriately zoned land within the City and in the planned Margarita Specific Plan Area to accommodate the City's regional share of housing for lower-income households. The Housing Element contains a number of new programs aimed at preserving and increasing lower- and moderate income housing opportunities, including 2.3.1 (expanded inclusionary housing), 3.3.5(no net loss housing), 6.3.1 (exempting housing affordable to very-low, low-, moderate-income households and Downtown housing from growth management regulations), 6.3.3 and 6.3.4 (incentives for Downtown high- density housing), 6.3:5, 6.3.6, and 6.3.7 (accommodating higher density and workforce housing in expansion areas and in commercial, manufacturing or public facility areas), 6.3.11 (multi- family housing standards for streamlined processing) and 6.3.14 (architectural review exemptions for small residential projects). These programs are expected to significantly increase housing opportunities in San Luis Obispo. No additional programs are proposed D. If annexations along will not be sufficient to accommodate regional needs, modify Program 6.3.7 to describe specific acreages, densities and timeframes for rezoning/up-zoning to meet such needs. See comments under C. above. E. Available acreages and buildout projections for vacant and underutilized sites listed in Tables D-1 (page 135), D-4 (page 140) and those listed in the Residential Development Capacity Survey conflict. Expand the element to reconcile these differences. Minor differences are noted between Table D-1 of the Housing Element and Table 2, "In-City Development Capacity by Zone" in the February 2004 Residential Development Capacity Survey. Development Capacity in Acres for vacant land in the C-C and C-R zones should read "<1.." Otherwise, the tables are internally consistent. Note that the figures in Table D-1 include Blighted properties (see footnote 1). Table 2 breaks out Blighted properties separately. This may account for the minor differences. 2. As noted previously, the City's housing element requires a more thorough analysis of its permit processing procedures and other potential government constraints. Depending upon that analysis,the City may need to add programs to remove of mitigate any identified constraints. Potential and actual governmental constraints have been analyzed and are discussed starting on p. 96. Additional discussion of permit processing and potential constraints has been included, as noted in Section A., Housing Needs, Resources and Constraints, above. Efforts to remove or modify requirements that might hinder San Luis Obispo from meeting its share of the regional housing need are evidenced in several programs in Chapter 3, including: 2.31 (modifies � � b HCD Review of Auguse,., 2004 Attachment 1 Page 7 Inclusionary Housing Requirements to provide incentives for compact, higher density housing), 2.3.3 (policy review), 2.3.4 (permit streamlining), 2.3.5 ("green" building technology), 2.3.6 (impact fees assistance), 2.3.7(development review fees assistance),pages 26 and 27. AILAousing cica=t updaulhcdlurer8-31-04 City of San Luis Obispo Housing Element Attachment 2 Appendix C Housing Constraints and Resources a®rorm �. _ c�er.�r\...,..,--..,:;cs..o;:K•,.:.nxN->.:.<c�....�..;..vr..c»„n4x ti.cr—.:/ _:-�.��':.., 1. Governmental Constraints Governmental constraints are the policies, standards, requirements, actions or fees imposed by local, State or Federal governments to guide land use and development. Their purpose is to ensure that communities are well planned,and to protect the health, safety and well being of all residents. Within the City of San Luis Obispo, local building and zoning regulations are the primary regulatory tools guiding development. Some regulations, such as the Uniform Building Code and the California Environmental Quality Act, are State-mandated policies and standards implemented at the local level. Although State and Federal agencies do play a role in the imposition of government constraints, these agencies are generally beyond the influence of local government and are not analyzed in this document. As further described below,land use,development and construction standards can affect the type, location, number and cost of new dwellings. In general, these standards are intended to protect public health, welfare and safety and are necessary to carry out state, federal or local law. In achieving these public purposes, government rules may serve to constrain the construction rate, amount or design of new housing. State law requires that governmental constraints on housing be addressed in the Housing Element, with the goal of removing or modifying such constraints where possible to encourage suitable housing. Program 3.3.3 calls for the City to evaluate code requirements and development standards to remove unnecessary constraints to housing while still protecting public health, welfare and safety. _ Such evaluation is on-going, as part of the preparation, review, or amendment of local development regulations, or as needed to address specific issues raised by decision makers or the public. a) Land Use Controls General Plan By State law, all California cities must have a general plan to guide land use, transportation, housing and other important facets of the community. The general plan is the foundation of all local land use controls,and embodies the community's vision for an environmentally sound,life- sustaining future. Seven mandated elements,or chapters,make up the general plan,plus optional elements adopted by the jurisdiction to address special community concerns. Among these elements, the land use element identifies the location, nature,distribution and character of land uses in the City. To implement the General Plan, the City uses a number of planning tools including Zoning Regulations, Specific Plans, Subdivision Regulations, Community Design Guidelines, Historic 96 City of San Luis Obispo Housing Element Attachment 2 Preservation Program Guidelines and Parking and Driveway Standards: Property owners, developers, architects and others use these standards in designing new housing developments. The standards help explain the City's requirements and expectations, and are used by the City when reviewing development proposals. Policies outlined in the land Use Element stipulate the amount, type and location of housing. They also help establish the prevailing housing patterns and population density. Residential zones account for over 40 percent of total zoned land area within City limits. The San Luis Obispo General Plan provides for four residential zones, plus nine zones where housing is allowed with special approval. Table C-1 shows the land use zones that allow housing, their existing acreage and the ranges of density allowed. Table C-1 Land Use Categories Allowing Residential Uses Cityof San Luis Obispo x7me` bs; �Descappan. � s Acres in 2003` �'` o ed>Densz c ' c: rrcc r e v , Rf tYrtDerfs_y` � ... ^��,�5 �" R-1 Low-density Residential 1,672 7 R-2 Medium-density Residential 497 12 R-3 Medium-high-density 166 18 Residential R4 High-density Residential 72 24 1 C-C Community Commercial 91 36 C-D Downtown Commercial 45 36 formed "C-C"zone C-R General Commercial 166 36 C-N Neighborhood Commercial 51 12 C.T Tourist Commercial 205 12 C-S Commercial Service 461 12' M Manufacturing 186 t O Office 169 12 GOS Canservation/Open Space - 1.812 one dwelling/fin acres A Density Unit is equivalent to a two-bedroom dwelling. Other sized dwellings: Studio dwelling,0.3 DU; bedroom dwelling,dwelling,0.66 DU;three-bedroom, 1.5 DU;four or more bedrooms,2.00 DUs. Net acre refers to site area minus dedicated right-of-way. 97 c — c ( Attachment 2 City of San Luis Obispo Housing Element ZCommunity Commercial is a new zone in 2003,and consists of large shopping centers. 3 I combination with Mixed-Use(MU)overlay zone,up to 24 DU/acre allowed. 12 DU/acre considered likely average density achieved. General Plan policies encourage infill development to avoid sprawl, and also designate major residential expansion areas outside city limits and within the Urban Reserve, the City's anticipated urban limits at build out. The policies seek to balance residential development with open space preservation and availability of urban services. According to the General Plan land Use Element, a total of 24,300 dwellings is anticipated within the City by the year 2022, accommodating approximately 57,200 persons. As of January 2003, the State Department of Finance reported 19,558 dwellings in San Luis Obispo,housing a total of 44,359 persons. b)Zoning Regulations and Development Standards Zoning Regulations implement the City's General Plan land use policies. They establish specific development standards, allowable land uses, performance standards and the permit process necessary for the City's orderly development. Zoning regulations control development by regulating allowed uses, and by development standards that set density, building setbacks, building height, lot area and parking requirements. The regulations apply equally to mobile homes, manufactured and site-built housing. Table C-2 summarizes residential zoning development standards for San Luis Obispo. The standards are comparable to other communities' requirements and ensure a quality living environment for all households, regardless of tenure or income group. Secondary Residential Units Secondary residential units, or "granny flats", are permitted on legal, conforming lots in any residential zone. Such units allow property owners to provide modest,affordable studio units by right on legal, conforming residential lots. Also, several exceptions or variance procedures possible in the"planned development"and"specific plan"zones allow flexibility in site planning and building design to encourage the development of housing for special needs groups, and to provide density bonuses for projects which include affordable housing which meets or exceeds City standards. Table C-3 lists some of the City's Flexible Development Standards to encourage housing. Enerev Conservation Compliance with Title 25 of the California Administrative Code on the use of energy efficient appliances and insulation has reduced energy demands resulting from new residential development- The City's Energy Conservation Element, Subdivision and Zoning Regulations promote energy-conserving design and placement of buildings, and Pacific Gas and Electric offers public information and technical assistance to developers and residents on ways to conserve energy in the home. City policies encourage alternative building designs that conserve 98 l 1 � Attachment 2 City of San Luis Obispo Housing Element energy through passive and active solar features,"green"building technology and appropriate use of landscaping to help reduce heat gain,preserve solar access,and provide windbreaks. 99 t1 [3 Attachment 2 Table C-2 Summary of Residential Development Standards,2003 City of San Luis ObisPo Zane Midamor Ma:Lot Max. Bldg Mia Street Min,Other Car 3'aridng Required UK Lot Area Coverage aetEht Yard' Yard' Reqs Dv R-1 6.000 40% 25' 20' 5-10' 2 spaces/dwelling;I of which M ust in or..+IR sp n R-2 6.000 50% 25' W. 5-10, 1.5 sp/i'bdrnfor herb add].bedrmJuniC plus Ispl5 units in pmjwts of 6 or more units R-3 61000 60% 35' 15' 5-10' Same as R-2 R4 6.000 60% 35' 15' 5-10' Same as R-2 C-C 3.000 75% 35' 0' 0' %that required in other zones C-D 3.000 75% 50' 0' 0' 'A that required in other zones C-R 9.000 100% 45' 0' 0' Same as R-2 C-N 6100 75% 35' IO' 5.10' Same as R-2 C-T 9,000 75% 45' 10' 0' Same as R-2 CS 9,000 75% 35' 10'-15' 0' Same as R-2 M 9,000 75% 35' I0'-15' 0' Same as R-2 O 6.000 60% 25.35' IS' 5.10' Same as R-2 C/OS 5 Acres(A) 5%-parcels< 35' 20' W. 2 spacWdw Umg;1 of which or more 10 A:3%for must in garage or carport >10 A Source: City of San Iris Obispo.Community Development Department 'in the C-C.C-D and C-R zones,the street yard and Other Yard are equal to that required for the adjacent lot. If adjacent Int does not haw sum yard is required. In CS and M zones.Other yard is 0'or as required for the adjacent lot. 235'height requires Adminisua ive Use Permit approval. 'Dwellings located above ground floor allowed by right;Administradve use permit required for dwellings on the ground floor. City of San Lois Obispo Housing Element Attachment 2 tin-Work and Work-Un units requite Administrative use Permit approval. Table C-3 Selected Flexible Residential Development Standards,2003 City of San Luis Ob' -=;�llevdo`-_"Feetifro-- 1.-, ..,�Ffa+Wastanaaca ,.,. `.;::rotenaaltudes:, � Where Reudeaud Uses Allowed Dwellings allowed in combination w/snyothcr-—. Mixed-ale developments,affordable or mad use with Mind Use zone ho Residmtial Density Bonuses 25%density Douus anlamatically allowed if 20% Very-low.low.and moderate income bousin ofpmjeer units aftardable or for elderly.OWcr elderly housing. stadard and negotiable density boouva Possible NonConfowing lots lata that wee legally totaled bra do nes meet Residential Ids less than 6A00 square four curt sire o,AimcosioU standards may be individually developed Nonconforming Structures Dwellings that an,mnc nonning in temp of Legal.nouconfmming single-and multi-fan. density,yards,coverage or parking may be¢built d"Hur a that are legal,ooucodbnnurg and aparviouslye ' ' ifinvehurrarrilydesuroyed involuntaril or destroyed Density Transfer Residmid density may be transferred within raw Hillside orcreekside las wbee devdopmen covered by a planned de trensfesred to cluster devellopurent SbmorOtber YardSerhatb Stree yards may be idnrod tol0'fabuiWmgL Additiomhrmodels oflegal.ooncenformin; and Other Yards reduced to O'with CUP approval dwellings;zoo4ot line dee Tandem Kiting .One unenclosed tandem parking space may be Dwellings with garage conversions and for S located in—I Soot Yards fordesigoamd BesidmtiW unite and 6m tl hiatal pocking single delliop dniedwelhw Shard and Mixed Uan larking - wboe2ormoeu0sharepsding,a30% Mixed use developments wbere omopatibbe patio teduai®u possible with CUP approval residential and commercial uses spare parkir ekhiig for Elderly and Lo luazme Housing NfpsoAma mgauedfarelderlyhwsiog;lcar 1ocom" ion with emwy boom allows a spae,Eicyek sporAmit be verybw/bvr income u ilirsdon ofaire for special needs housing Parking and Driveway ReWhtmomts Parking and driveway standards(width.design. Allows mom creative design ofhounq:cap msunials)variable with Dikator approval usefid on wall sites or for older neudrborho Building Height Cou"acuesofnlarenergy,systems,chimneys. Hosing with War energy systems.roof-mor meet Equipment,veal,steeples,and antenna mechanical equipmmt.ortelaor®unieetio may exted up to 10 h.beyond Wowed building facilities. bright 101 � - l� Attachment 2 Mixed Residential and Commercial Uses Mixed residential and commercial uses are encouraged to allow for more housing in areas close to jobs and employment centers,to exploit affordable infill housing opportunities and to promote a compact, pedestrian- and transit-friendly urban structure. Dwellings are permitted in all commercial zones with either a conditional use permit or Mixed-Use (MU) rezoning, including office, service-commerciaLtlight industrial and manufacturing zones. The application of an "MU" overlay to any other zone requires a mix of residential and non-residential uses on either residentially or commercially zoned sites. Allowed density and other development standards follow those of the site's underlying zone,except that the application of the MU overlay zone to a site may include establishing a higher height limit than the otherwise allowed to more effectively accommodate the residential component of the mixed-use development. Mixed-use development is an emerging development trend.in San Luis Obispo,and while there are no recent examples locally,it is anticipated that residential densities of 24-45 density units per acre acre are possible with this form of housing, particularly on suitable sites in the Downtown Core or in Commercial Service areas. Establishing new mixed uses requires use permit approval. In 2003, the City revised its zoning regulations to allow livelwork apartments in the C-S zone, and work/live apartments in either the C-S or M zones. Previously, only caretaker quarters were allowed in these zones. Program 6.3.3 calls for additional incentives to encourage mixed-use developments in the Downtown Core, including flexible density, use, height or parking provisions. Parking Requirements San Luis Obispo's car parking requirements are shown in Table C-2. The type and number of car parking spaces varies by zone. Flexible parking requirements and design standards allow developers to reduce parking by up to 30 percent for mixed-use developments. Flexible standards also allow variety in parking locations, layouts and design in order to promote more efficient and attractive use of residential sites. Bicycle and motorcycle parking also is also required for multi-family housing at the rate of one motorcycle plus one bicycle space per 20 car spaces. Parking requirements indirectly constrain housing, especially in the Downtown Core where parking is very limited. Because the Zoning Regulations require that parking be provided on the same site as the use, this reduces the amount of land available for residential development. While excessive parking requirements can unduly constrain housing, insufficient parking can adversely affect residents' safety, quality of life and neighborhood compatibility. The City's standards seek to establish a balance by allowing flexible requirements that can be tailored to specific site conditions where necessary. Program 6.32 calls for amendments to City parking regulations to allow flexible parking regulations for housing, especially in the Downtown Core (C-D zone). Allowing reduced or no parking requirements for development of housing for people who either do not own or need on-site parking will be considered.. Much of the City's Downtown Core was developed in the late 19th and early 20th century when ( ' r Lo City of San Luis Obispo Housing Element Attachment 2 automobile parking was not required. Many parcels in the C-D and C-R zones lack onsite parking. The Downtown Core is the most intensively developed area of the City, and development standards encourage 100 percent site utilization and a mix. of commercial, residential,cultural and governmental uses. In the C-D zone, parking is half of what is required for residential use in otherzones,and may be met by locating parking off site, within 500 feet of the use,or by paying a fee in lieu of providing parking. The long-term strategy has been to build public parking facilities on the edges of Downtown to encourage infill and intensification,use of public transit and a more"pedestrian friendly"Downtown Core. The C-D zone allows the highest density housing in the City. However, housing is difficult to build,in part,because of the difficulty in providing parking. Downtown hotels(Anderson Hotel, Granada Hotel, Wineman Hotel, Blackstone Hotel) were developed with little or no. parking, while providing housing for tourists or residents without cars. 2000 Census figures show that about seven percent of San Luis Obispo householders did not own a car. For those without cars, or those who use cars infrequently, Downtown provides an alternative housing choice near schools,shopping,nightlife,jobs and services.. For those who do need cars,the possibility exists for shared use of private or public downtown parking facilities. For example,some parking may be available for rent in Downtown public parking facilities during evenings,when times of peak parking demand do not coincide. Additional flexibility to allow very low or no parking requirements for residents without cars and with adequate guarantees tied to occupancy, could help expand housing opportunities in this important and desirable location. Subdivision and Grading Reutulations Subdivision regulations determine how land is subdivided and set requirements for facilities such as public streets and utility lines that serve the new subdivisions. Specific requirements for materials and construction are adopted as policy by the City, according to recommendations by the City Engineer. Special limits and requirements are often set by the City Council when approving individual subdivisions. The minimum lot size in residential zones is 6,000 square feet, with minimum widths of 50 or 60 feet; however, exceptions to lot size and dimensions are possible with City Council approval. As a special type of attached, ownership housing, the Condominium Regulations set minimum standards for open-space,recreation, laundry facilities, solar heating and storage that are higher than those applied to rental housing. The City s Grading Regulations set limits and procedures for earth moving, generally to prevent mass recontouring and erosion and to assure stable building sites. Lot Size. Lot sizes and established neighborhood patterns influence the types of housing within a community. Historically,most residential lots in San Luis Obispo ranged in size from 5,000 to 7,500 square feet, with about 6,000 square feet being common in newer subdivisions. The subdivision of land into parcels of 6,000.10,000 square feet, regardless of allowed density, has encouraged the development of low-density,detached housing. Reducing the minimum lot size is often recommended as a means of increasing housing density and thereby reducing land cost per unit of housing. It does not necessarily follow, however, that small lots will result in more 103 Attachment 2 City of San Luis Obispo Housing Element affordable housing. There are many coastal resort communities in California with high-priced cottages on small lots. In high-density residential areas, small lots may encourage the construction of detached, rather than multi-family housing. Large parcels in medium-high and high-density residential zones offer the best opportunities to encourage affordable housing. Larger parcels in San Luis Obispo, even in low-density residential zones, are suitable for apartments and condominiums. San Luis Obispo allows relatively small lots of 6,000 square feet in all residential zones,and has the second highest residential density of the County's cities (after Grover Beach) with about 4,500 persons per square mile. It remains,however,one of the most expensive housing markets in the County. Clearly, market demand strongly influences housing costs. And while the City's lot pattern has been established in most areas, lot patterns in expansion areas are yet to be determined,allowing the opportunity for a mix of residential densities and lot sizes. Land is a major component of housing costs in San Luis Obispo. In many of the City's older neighborhoods, lot sizes of less than 6,000 square feet are common. While many housing consumers prefer single,detached houses on 6,000-square-foot or larger lots, there also appears to be a market for smaller,detached homes on relatively small (e.g.4,000 to 4,500 square feet) lots. Reducing lot areas, with a concomitant reduction in house size,.is one strategy to reduce housing costs for those desiring "starter housing," such as working couples and small families just entering the housing market.In 2003 such development would require approval of a variance or aplanned development(PD)rezoning. c)Specific Plans As the name implies, specific plans guide the development of a defined area to implement the general plan. Such plans can vary widely in terms of geographic area covered, degree of specificity,and land uses addressed. As shown in Table C-4,the City has four expansion areas Table C4 Estimated Housing Capacity in Ex anion Areas 2003 anion-Area_ . DwellftitVrifts . Orcutt 979 Margarita 868 Edna-Islay West 54 Minor Annexation Areas and Cal Poly' 2,091 TOTAL 3,992 (Foothill Saddle,Luneta,CDF,Highland,Miossi.Alrita,Maino,Cal Poly,and other residential areas). Includes approximately 900 student apartments on the Cal Poly Campus. 104 r - cg i Attachment 2 City of San Loris Obispo Housing Element that, when annexed and fully developed, could potentially add 3,091 dwellings; plus student apartments being developed on the Cal Poly University campus. Most of the City's large residential developments will be located in designated expansion areas located outside the 1993 City limits but inside the Urban Reserve Line. Figure C-1 shows the location of future residential areas outside the 1994 City limits. City policies require the preparation of specific plans for each of the major expansion areas, with provisions for phased housing development. Each area's phasing will be determined,in part,by the affordability of the dwellings,and by other public benefits such as open space. The specific plan area committed to producing the largest number of dwellings affordable to very low-or low-income residents generally will be developed first. As of the adoption date of this element,the Margarita and Orcutt Area Specific Plans have not been adopted. Descriptions of the planned zoning and permitted uses in these areas, including land available and suitable for higher density, multi-family rental and ownership housing,are included in Appendix.K. Figure C-1 Major Expansion Areas,2003 Margarita Specific Plan Area. The Margarita Specific Plan Area, stated for about 870 new dwellings, will be the next major expansion area to be developed. The Margarita Area contains about 418 acres in the south- central part of the City's urban area. The City has counted on the Margarita Area to provide a large share of the City's future ^�Lkban aeswe Una housing needs and to city of san Luis oeispo tosiderod balance projected skmartrrte"t l owrrmrad&In tttrw job owth: A draft ®lke To Be leterriirieo N Specific Plan and 105 L Attachment 2 City of San Luis Obispo Housing Element EIR were made available for public review at the start of 2002. City action on the long-awaited Margarita Area Specific Plan and Draft EIR is anticipated in 2004, with construction starting in 2005. Orcutt Expansion Area. The Orcutt Expansion Area covers about 231 acres in the southeastern part of the urban area. Almost half of the area would be open space or parks. The rest would accommodate up to 979 dwellings of various types,according to the specific Plan Draft prepared in 2002 by a consultant retained by some of the property owners. During 2002, that consultant and City staffers spent considerable time and effort working with all the Orcutt Area property owners. In October 2002 the City Council endorsed a conceptual land use layout for the Orcutt Area,and directed staff to proceed with preparation of a Specific Plan and Environmental Impact Report. A major issue emerging in planning for future residential development in the southern part of the city is how additional elementary school enrollment will be accommodated,if a school cannot be located in either the Margarita Area or the Orcun Area, under policies adopted by the independent Airport Land Use Commission. d)Residential Growth Management Regulations The General Plan targets a Population growth rate not to exceed one percent annually, averaged over a three year period. The Residential Growth Management Regulations implement that policv through the timing of building permit issuance. In 1999 the City significantly revised its, growth management regulations to apply to new residential construction within the City's designated expansion areas. The regulations include a phasing plan showing the number of new dwellings to be.built in residential expansion areas, while the.timing of infill proiects is not regulated. Table C-5 shows the phasing plan adopted in 2002. The phasing plan will be updated in 2004 to reflect the status of the major expansion areas. As of August 2004, residential construction in the Margarita and Orcutt areas has not vet begun. The phrasing schedule is based primarily on the readiness of the identified expansion areas to proceed with subdivision and development. This in turn was largely a consequence of-where the areas were in the Process of adopting development plans and specific Plans, and annexation. The phrasing identifies the anticipated number of new dwellings for each expansion area and the anticipated time frame in .which thev will be built. The phasing plan.addresses allocations among expansion areas, not to different owners within them. New dwellings affordable to residents with very-low, low-or moderate incomes,as defined in the General Plan Housing Element, and new dwellings in the Downtown are exempt front growth management. The re¢ulations .are .implemented through the annual General Plat: review process. The City Council annually reviews the status of residential construction in expansion areas compared with the phasing schedule. As part of its review, the Council may consider changes to the total number of dwellings built within a phasing period, changes to allow allocations to be shifted among areas, or changes to the phasing intervals to accontntodate planned buildout of expansion areas. If there is an unused allocation of dwellings in one phasing period, the Council typically applies the unused balance to. future Years to achieve 106 C - �0 1 Attachment 2 City of San Luis Obispo Housing Element housing production goals. if housing construction exceeds nluisine plan allocution. Council pray temporarily limit the issuance of new building permits in expansion areas or modify the plan to achieve residential growth targets. Quantified objectives anticipate the construction of 4,087 dwellings during the planning period. Of these, 73 percent, or about 2,984 units will be for very-low, low- and moderate income households following the percentages of housing affordability in the City's RHNA number. Very-low, low, and moderate income dwellings are exempt from the residential growth regulations, as are infill housing, second dwelling units, and other residential development outside designated Expansion areas.. Figure C-2 General Plan Anticipated Housing and Population Growth City of San Luis Obispo Table 2: Anticipated CSt}•Population Growth 60,000 54MO P.200 sz,2� �e.roo 50.000 a eoo ®Approximate 40,000 Maximum Number 30.000 of Dwellings 20 CODIQ 21' zs�oo ❑Anticipated Number of People 10.000 (1} 0 — - - 1992 1997 2002 2047, 2012 2017 2022 Source: City of San Luii Obispo General Plan Land Use Element Estimated urban reserve capacity:57,700(2) Notes: (1)Includes residents of group housing. (2)Includes Cal Poly campus residents,who are inside the urban reserve but who were outside the City limits in 1994. 107 AILlachnnent 2 City of San Luis Obispo Housing Element (2)Includes Cal Poly campus residents,who are inside the urban reserve but who were outside the City limits in 1994. Consequently, the Residential_Growth Management Regulations_will not prevent the City_ from___ --(Deleted;T achieving its quantified objectives because they do not set a numeric cap on all housing. New housing that is affordable to very low-, low-,and moderate-income households,and new housing in the Downtown Core (C-D)and on the Cal Poly campus are exempt from the Regulations and do not count toward the total number of dwellings built during phasing plan intervals. The total number of dwellings allowed under the Phasing Plan during the planning period, plus the projected number of exempt dwellings totals over 4.800 dwellings --significantly higher than the City's RHNA number. figure G2 shows the housing and population growth anticipated in the General Plan. General_ Deteted:9 Plan policies promote a balance of land uses to create a healthy, sustainable and resilient economic basis,protect the natural environment and promote housing that can accommodate all income groups. The General Plan States that population growth should not increase more than one percent per year,averaged over a 36-month period, until it reaches a buildout population of 57,200 persons in 2022. To accomplish this objective,the City amended its Residential Growth Management Regulations in 2000. The new regulations emphasized development phasing in major annexation areas as the means to manage long-term residential growth. The regulations include a phasing plan showing the number of new dwellings to be built in residential expansion areas during three-year intervals, while the timing of infill projects is not regulated. New dwellings affordable to residents with very-low, low- or moderate incomes are not counted toward the one percent average growth rate. The regulations are administered through the annual General Plan review process. The City annually reviews the status of residential building in relation to the adopted phasing schedule. Revisions are then considered which would allow allocations to be shifted among areas,or the phasing intervals modified to better achieve housing goals. .......________ beteted:Tabic c5 straws de phasing pLm adopW in 2002.The pig plan win be updued in 2003-2004 to maga the In 2003 plans for the Margarita and Airport areas are nearing completion with approval expected sawis of the rn lw expansion ams. As of Ap,in 2004. Plans for the other major residential expansion project,the Orcutt Area, is in the early M&WAtaa o mial otyathe stages of preparation. Housing construction in the Margarita Area is likely to start in 2005,with b*= the Orcutt Area expected to follow no sooner than 2008. Expansion areas that provide the most affordable housing and other community benefits, such as open space protection, will receive development priority. The Airport Land Use Plan The San Luis Obispo County Airport has a major influence on the community, particularly the southern part of San Luis Obispo's urban area where most of City's residential growth is planned. Under State law, a countywide, independent Airport Land Use Commission (ALUC) adopts a plan identifying land uses that are compatible with present and future airport noise and 108 Attachment 2 City of San Luis Obispo Housing Element safety conditions. The area subject to this Airport Land Use Plan (ALUP) extends beyond the City's designated airport specific plan area, and includes land under City and County jurisdictions. Proposed specific plans and amendments to the General Plan and Zoning Map or Regulations are referred to the ALUC for a compatibility determination.The ALUC uses its plan as a basis for those determinations.A four-fifths vote of the City Council and certain findings are required for the City to override a finding of incompatibility. The City's General Plan calls for consistency with the Airport Land Use Plan. In June 2002,the ALUC adopted major amendments to its 1970s-vintage plan.The amendments significantly reduced the number of residential units that could be built in the areas subject to the plan. In most areas, the plan limits overall residential density to six dwellings per acre, well below densities targeted by City plans. For example, the number of units planned for the Margarita Area had to be reduced from 1,100 dwellings to 870 dwellings. Following the ALUC's action, the City began to amend the Airport, Margarita and Orcutt Expansion Area Specific Plans to reflect the amended ALUP,and also amended the Zoning Regulations (as part of the proposed commercial zoning update). Under State law, the City's General Plan must conform to the amended ALUP, unless the City Council overrules the ALUC's consistency determination by a two-thirds majority vote.Planned amendments are expected to extend through 2004.The main issues are anticipated to involve infill housing,uses that concentrate on young or elderly occupants(such as schools and residential care facilities),and the provision of level,open areas that can serve as emergency landing sites. Table C-5 Major Expansion Areas Phasing Plan,2002 Source: City of San Luis Obispo,Community Development Department,August 2002 Notes: Number of Dwellings Permitted(a,b) -Comdaryc= 2002- 2005- 2008- 2011- 2014- 2017- 2020- 2004 2007 2010 2013 2016 2019 2022 Total Assumed Demolitions -40 -30 -30 -30 -20 -20 -10 -180 Assumed New in-city(c) 110 100 100 100 100 100 100 710 Allowed Dalidio 0 180 0 0 0 0 0 180 Allowed Irish Fills North 80 0 0 0 0 0 0 80 Allowed Irish Fills South 86 0 0 0 0 0 0 86 Allowed Orcin 70 90 215 235 30 0 0 640 Allowed Margarita 264 235 310 303 0 0 0 1,112 Assumed Other annexations 20 30 30 30 30 30 1 30 1 200 Calculated Interval total: 590 605 625 638 140 110 120 2,828 Average annual%change(d) 1.00 1.00 1.00 0.99 0.22 0.17 0.18 0.69(e) (a)Dwellings affordable to residents with very low or low incomes,as defined in the Housing Element,are exempt. 109 I Attachment 2 City of San Luis Obispo Housing Element (b)This is a simple count of dwellings and is not meant to reflect the Zoning Regulation's method for calculating fractional dwellings. (c)Includes the incorporated area in 1994 and certain annexations during 1994-1998(Stoneridge;Prefumo Homes; and the El Capitan,Goldenrod and Fuller Road parts of the Edna-Islay.Specific Plan,which has its own growth management provisions). (d)A calculated result:dwellings permitted(new construction minus demolitions),divided by three,divided by the total number of dwellings projected to be in the city at the middle of the interval;times 100;assumes that the maximum amounts are achieved in previous intervals. (e)A calculated result:the compound growth rate that over 24 years would result in the total net increase. Density Bonus The Affordable Housing Incentives allow a residential density bonus of at least 25 percent for developers who build five or more dwellings with at least 20 percent of those units sold or rented at prices affordable to low- or moderate income people, or at least 10 percent of the units for those in the very-low income category. Housing developments with at least 50 percent of the units targeted for persons 62 years or older also qualify for a density bonus. Additional incentives, including density bonuses greater than 25 percent,are available on a negotiable basis in return for adding a Higher percentage of affordable units. Secondary Dwelling Units In 2003, in response to changes in State law, the City adopted new standards for secondary residential units, or "granny flats." The new law requires local governments to allow these secondary units administratively, without a public hearing or discretionary approval. Additionally, the bill requires cities to create standards that will prevent adverse impacts on historic resources. Cities may,however,create a detailed set of property development standards including, but not limited to, parking, height, setback, lot coverage, architectural review, maximum size and standards to prevent adverse impacts on historic preservation sites. San Luis Obispo's secondary dwelling units (SDU) ordinance modifies or eliminates the previous use permit requirement and discretionary review for SDUs, and allows attached or detached SDUs on any legal,conforming and residentially zoned lot. Under the new provisions, SDUs require only one parking space, and are reviewed by the City's planning staff to ensure architectural compatibility. SDUs must conform to applicable zoning regulations such as height, yards, parking and building coverage, and are limited to a maximum floor area of 450 square feet. Performance standards to ensure neighborhood compatibility also were included in the amended SDU regulations. SDUs are treated as an additional unit but are not taken into consideration when calculating total allowed density on a site. Beginning in 2003, SDUs are charged development impact fees as a "multi-family dwelling." Rental costs for SDUs are not listed separately in local classified ads and rental listings, however SDUs are likely to rent at prices similar to or slightly higher than studio apartments in multi-family developments. Manufactured and Modular Housing,Mobile Homes and Mobile.Home Parks 110 -' Attachment 2 City of.San Lais Obispo Housing Element Manufactured, modular and mobile homes offer economical alternatives to conventional, "stick-_,, tieiefed:Y built" housing. Manufactured homes are those built entirely in a factory under Federal building codes administered by the U.S. Department Housing and Urban Development (HUD). Manufactured homes are then transported to the site as single- or multi-section homes and installed on site. On-site additions,such as garages,decks and porches,add to the attractiveness of the homes and must be built to local building codes. Modular housing describes factory-built homes manufactured specifically to the State, local or regional construction code requirements wherever the home will be located. As with manufactured housing, the modular homes are transported to their sites and installed. Mobile home is the term used for factory-built housing produced before June 15, 1976, when the HUD construction codes took effect. Other types of manufactured housing include panelized and pre-cut homes, in which factory-built homes are shipped to the site in panels or as pre-cut"kits"for site assembly. Industry advances in quality and design, as well as affordability, dramatically increased the popularity of these housing types in the late 1990s. In 2000, according to the Manufactured Housing Institute, 22 million Americans (about eight percent of the U.S. population) lived fulltime in 10 million manufactured homes. In 2001 the industry shipped over 193,000 homes from 275 manufacturing facilities nationwide. A manufactured home can cost anywhere from one-third to one-half the cost of a conventional house. Architecturally, manufactured homes include details and features that make the homes compatible with most residential neighborhoods and communities. In 2003 California Department of Finance figures show that San Luis Obispo had 1,501 mobile homes, or about 7.6 percent of the City's housing stock. Mobile homes, placed on permanent foundations and located outside mobile home parks, and manufactured (modular) housing are treated the same as conventional site-built housing under the City's zoning, subdivision and architectural review requirements. Therefore, all residentially zoned land is available for some type of manufactured housing. Mobile-home parks are allowed with use-permit approval in all residential zones. The City has few areas suitable for new, large mobile-home parks or for the expansion of existing parks. However,expansion areas could accommodate mobile home parks once they are annexed. e)Architectural Review Architectural review is required for all residential developments, except individual built, single- family dwellings. The exception for single-family dwellings does not apply: (1) when architectural review is required as a condition of a subdivision,use permit or other discretionary entitlement;(2) when a developer proposes to construct three or more units;(3) when the City's Community Development Director determines the site is sensitive as set forth in the procedures document ("sensitive sites" shall include, but not be limited to, open space zoning areas designated by resolution of the planning commission, architectural review commission or council); (4) where the scale or character of a proposed dwelling contrasts significantly with adjacent or neighboring structures; and (5) where any required parking spaces that are covered are converted to another use and replacement parking is proposed. ru 1 ^ � 4�� City of San Luis Obispo Housing[]emrnt l��LLaCl print 2 San Luis Obispo has adopted Community Design Guidelines that describe the community's expectations and preferences for the quality and character of new developments. The Guidelines encourage design variety and innovation, and are intended to preserve San Luis Obispo's distinctive character and sense of history. Depending upon the type and scale of the project, architectural review can add,on the average,from two to four months of review time, including study, public hearings and revisions. The additional holding time, from a development standpoint, adds to development costs (interest costs, design/architectural fees, construction delays) that are then passed through to housing buyers. For large residential projects, this cost impact on an individual dwelling is lessened; however, on small projects, the cost can be a significant factor in the overall purchase price of a home. Most of the City's neighborhoods are an eclectic mix of architectural styles and character. In many cases, small residential infill projects of four units or less can be integrated into neighborhoods,on lots already zoned for residential use, without posing significant architectural design or compatibility issues. The housing would need to comply with all zoning standards, including setbacks, building height and lot coverage. By exempting small residential projects from architectural review, the City could help reduce development costs and improve the economic feasibility of constructing small detached or attached dwellings. On historic properties, or where site constraints such as creeks, steep hillsides or lot shape required special consideration, architectural review of the "sensitive site may be appropriate. To help reduce development costs,this Element calls for an amendment to the Municipal Code to exempt small residential projects (four or less dwellings not on a sensitive site).from Architectural Review Commission review. Most of these developments would be eligible for less costly and time- consumting staff level architectural review. f)Building and Zoning Code Enforcement Code enforcement focuses mainly on zoning or building code violations that adversely affect public health or safety, and on preserving neighborhoods. The code enforcement program includes education, mitigation and prosecution issues, and has two components: 1) building and zoning code enforcement,and 2)neighborhood services. In addition to ensuring that new development is designed and constructed in conformance with City standards for quality and safety, the Community Development Department also ensure that property and land uses conform to those standards over time. The Department enforces the City's land use, development, building and sign regulations through its Code Enforcement Program. The Code Enforcement Coordinator is responsible for the resolution of any violations. Table C-6 summarizes Code Enforcement complaints received in 2001. The program is complaint-driven and handles about 400 cases per year. Upon receipt of a complaint, a building inspector makes a preliminary site visit to verify the existence of a violation, and informs the Code Enforcement Coordinator about conditions at the site. If a Ill C - � 'Attachment 2 City of San Luis Obispo Housing Element violation exists,a"Notice of Violation"is issued and the necessary steps are taken to resolve the problem. More complicated cases are set for abatement proceedings or,in some cases, criminal prosecution. Complaints about neighborhood overcrowding and illegal construction have accounted for the majority of City building and zoning code enforcement cases. The illegal conversion of garages, sheds, attics and shops to rental housing has contributed to substandard housing, parking violations, property maintenance complaints and other housing concerns. The City notifies property owners in writing of specific conditions that must be addressed, and provides clear direction on how to correct the violations. City staffers work with property owners to determine whether the illegal construction can be upgraded and remain in place,or if steps are necessary to remove any illegal or unsafe construction. Of these enforcement actions, less than one percent actually resulted in displacing the current occupant. Table C-6 Code Enforcement Cases,2001 City of San Luis Obispo OFiCOMP.LAINTS=�� _ �. 5 Number of Cases �u,-•.> Garage Conversion 31 Substandard Housing 30 Fligh-Occupancy Residential Use 9 Other 98 Signs 112 Converted living Space 10 Horne Occupations 15 Fence Height 12 Animals 2 Trailer 0 Noise 4 Fratemides/Sororities 4 Use In Wrong Zone 3 Building Coda Violations 68 No Building Permit 78 113 -� Attachment 2 /A`tc:Chil?ei;t L City of San Luis Obispo Housing Element TOTAL COMPLADM RECEIVED 476+ Source: City of San Luis Obispo,Community Development Department. *Established cases may have multiple complaints. Neighborhood Services. In 1995 the Office of Neighborhood Services (ONS) was established. It is administered through the San Luis Obispo Police Department, and enforces Noise Regulations, residential parking districts and Property Maintenance Standards. These standards preserve the quality,character and condition of neighborhoods, and address the following issues related to residential and neighborhood preservation: screening of storage and recreational vehicles, front yard paving, use and maintenance of roofs, fencing, maintenance of buildings or grounds and graffiti. In 2002 the ONS issued 2,777 noise violations and 504 notices for property maintenance violations. Through public information, community and educational programs, ONS works to improve communications between students and other neighborhood groups, and sponsors special neighborhood events, such as Good Neighbor Day and Neighborhood Cooperation Week. The SNAP (Student-Neighborhood Assistance Program) and WIN (Working to Improve Neighborhoods)Programs engage community volunteers, neighborhood groups and city staffers in a working partnership to preserve and enhance neighborhoods. Construction Codes San Luis Obispo's construction codes are, with few exceptions, uniform codes enacted by the State legislature and used throughout the State. They set forth health and safety standards for structures,plumbing,electrical and fire prevention. The cost of meeting State construction codes -- laws intended to make new housing safer, stronger, more energy efficient and resistant to fire and earthquake hazards--is ultimately passed on to housing consumers. In the long term,many building standards can reduce ongoing housing costs through lower utility bills and reduced insurance premiums. In some cases,San Luis Obispo has adopted more stringent construction codes than mandated by the State. Local Building Code amendments that could affect housing cost include the following: 1. Seismic Strengthening of Unreinforced Masonry (URM) Buildings. There are 126 urzeinforced masonry buildings in San Luis Obispo, many of them historic. Of these, 10 include dwellings. All URM buildings have undergone structural analyses as required by State law. City regulations require all URM buildings to be seismically strengthened by 2017. Strengthening involves improvements to building foundations, walls and roofs to resist catastrophic damage and loss of life during an earthquake. Such improvements can be expensive, ranging in cost from $50-$65 per square foot in 2003. Construction permit and planning fees for URM replacement buildings are waived,and fees spent on seismic analysis are credited toward architectural review, plan review or building permit fees for URM strengthening projects. Pursuant to Council Resolution No. 8663 (1997 Series)establishing 114 2 City of San Luis Obispo Housing Element Af:4chrrie,nt an incentive program for URM strengthening, City offered to provide technical assistance in forming a"voluntary assessment district"to assist financing of URM improvements and fire sprinkler installation. Due to a lack of sufficient property owner interest, the volunteer assessment district approach was not implemented. URM strengthening or replacement costs may exceed property owners' financial capacity and/ or force closure of buildings that do not generate sufficient income to support the improvement costs. Affordable downtown housing may be particularly vulnerable in this regard. Additional financial assistance and/or incentives may be necessary to meet the 2017 deadline and to preserve or provide affordable downtown housing. The City intends to seek State and Federal grants as part of its 20042009 housing program initiatives to address this important issue. 2. Construction in the downtown commercial fire zone must be of 5/8-inch Type X gypsum wallboard, unless the building is equipped with an automatic fine extinguishing system throughout. Additional material cost of the wallboard is not significant. 3. Due to expansive soils in the San Luis Obispo area,all residential foundations and slabs must meet more stringent requirements,unless a soils report is provided to show that such upgrades are not needed. The estimated cost for the foundation upgrade is approximately $2500 per dwelling. 4. Wood shake and shingle roofing materials are prohibited, unless the material is listed as a Class A Assembly. Adopted by ordinance in 1983,this law is intended to reduce fire hazards and the potential for loss of life and property from a major fire in the City. The ordinance differs from State and County regulations in that they allow wood-shake roofing that meets a minimum Class-C rating. Additional construction costs,if any,would depend on the builder's choice of a roofing material. 5. An automatic fire extinguishing system is required in all new buildings except most buildings that are 1,000 square feet or less. Initially adopted in 1990, the ordinance requiring fire sprinklers in all residential occupancies is intended to reduce fire hazards to life and property, to allow development where fire-flow, access or setback deficiencies might otherwise preclude it, and to reduce ongoing public costs of fire suppression. The fire sprinkler requirement adds about $3.00 per square foot to the cost of construction, or $6,000 for a 2,000-square-foot home. The added cost of fire sprinklers may be offset or recovered in the long-term since: 1) Most insurance companies have reduced homeowner fire insurance rates for homes with fire sprinklers. 2) Fire sprinklers add value to a home,and all or a portion of the costs can be recovered upon resale. 115 L - � i Attachment 2 City of San Luis Obispo Housing Element 3) During development,additional cost-saving allowances are made for buildings with fire sprinklers(e.g.,longer distances between fire hydrants serving a development;reduced vehicle access requirements). 4) Fire-flow requirements are reduced by 50 percent,allowing the use of existing water mains in most cases. This allows infill development where infrastructure deficiencies might have otherwise prevented it. Site Improvement Requirements The City may require on- or off-site improvements such as streets, utilities, traffic signals and landscaping as a condition of use permit, variance, subdivision or other land-use approval. Dedication of right-of--way, public transit facilities, easements or access rights also may be required These improvements add costs that are usually passed on to the housing consumer. This Housing Element includes policies which require the City to consider and minimize the costs of imposing additional requirements on housing projects beyond those required by State law, or necessary for public health, safety or welfare, and to periodically evaluate these requirements to determine if they are necessary to protect the public's health,safety or welfare. Typical site improvement requirements are listed in Table 'C-7 Specific design requirements vary depending upon site conditions and the project's size Small residential proiects of less than five dwellings typically require the minimum on-site improvements necessary for health and safety. Large residential developments including subdivisions typically require on- and off-site improvements to address traffic safety,drainage transit environmental Preservation to mitigate potential environmental impacts and/or provide the necessary infrastructure to serve the development. Table C-7 Typical Site Improvement Requirements City of San Luis Obispo Formatted:centered Improvement Infill areas Exogmsion areas Street widths Alleys:min 20' Alleys:6m Cul-de-sac:min 32'-36' Local streets:8.5m Hillside cul-de-sac:24'-28' Residential collector: 10.6m Residential minor:40' Principal collector: I I m Hillside residential minor:36' Commercial collector: I I m Residential collector:72' Commercial/industrial minor:44' Arterial:24' Thorou eh-fare(hwv):56' 44'-60' Sidewalks 6'- 10'alon both sides 1 1.5m w/o trees-5m w trees 116 � tt hmpnt,,2 City of San Luis Obispo Hoasing Element Curbs&Gutters Concrete alone both sides -To be inciymentally installed at the time of development and road construction. Lightin2 Utility Company standards aw. Energy-efficient,minimal glare. maximum 0.5 foot-candle illuminating property not intended to be illuminated, prevent illumination toward the sk . L,andscaoing Planting enhances building architecture: Planting is attractive.aromatic and reflects local climate is water suited to function and environmental conserving,low maintenance provides conditions;turf is used only in areas of seasonal or year mund shade: high demand flexible nlav space, emphasizes native species while otherwise native,drought-tolerant,low orovidinghotanical and visual diversity. £round covers should be used. Irlieated turf areas shall not exceed 20%, Reclaimed water may he used in many of total site area except in special areas for irrigation. circumstances. Americans.with Disabilities Act: Hotisina for Persons with Disabilities The Fair Housing Act of 1998 and the-Americans_with Disabilities Act(ADA)are Federal laws__- Deleted:y intended to help provide safe and accessible housing. The City is responsible for enforcing State accessibility regulations (California Building Standards Code,Part 2, Title 24) when evaluating new construction. Accessibility requirements of the California Building Code are similar to Federal regulations and mandate that new developments be designed to ensure full accessibility and use by the physically disabled. Single-family houses are exempt from these regulations. San Luis Obispo is committed to removing architectural barriers to persons with disabilities in its building and planning programs. The City actively enforces compliance with California Disabled Access Requirements which, in most respects, require a higher level of adaptable or accessible building design than federal standards. Since 1994,the City has used approximately$3 Million in Community Development Block Grants to remove architectural barriers in City streets and facilities, and provided an additional $2.5 Million in CDBG funds to support the private, non- profit development of housing that is both accessible and affordable to very-low income elderly or disabled residents. Compliance with building code requirements may increase the cost of multi-family housing production and rehabilitation. However, these regulations provide the minimum standards that the City roust comply with in order to ensure safety and the appropriate levels of accessibility in new developments. Difficult compliance situations may be reviewed by a city advisory body appointed by the City Council to consider such matters. Under state law, housing elements must analyze the potential and actual government constraints on the development of housing for persons with disabilities They must also demonstrate efforts to remove governmental constraints on the development of housing for persons with disabilities _ - Formatted:ront.itauc such as accommodating procedures for the approval of group homes The City has analyzed its development standards.and procedures to identify possible constraints such as policies local building and planning requirements. City General Plan policies and building and planning 117 f � 1 , City of San Luis Obispo Housing Element procedures strongly encourage accessibility in new and remodeled housing In general City Permitting procedures do .not differentiate between housing for disabled persons and non- accesssible housing,and City procedures encourage retrofitting existing housing for accessibility_ For example, retrofitting most single-family dwellings with basic accessibility improvements such as access ramps, path-of-travel widening, kitchen and bathroom modifications can he done with approval of an expedited"over the counter'building permit subject to a building permit fee based on the value of the work done. This-reduces the time and cost involved in retrofitting for accessibility,since plancheck routing and fees are waived. No planning approvals are required. More extensive retrofits to bring multi-family dwellings into compliance with the Americans with Disabilities Act typically would require only a building permit and where possible are also approved "over the counter' by the City's permit coordinator. Significant exterior changes to multi-family housing or to a historically designated property to provide accessibility, such as exterior ramps or building facade changes typically require architectural review, adding about four to six weeks to the approval process.. Several group housing developments in San Luis Obispo provide accessible housing for very-low and low income persons with disabilities. City zoning regulations allow residential care facilities by right in eight zones, and in an additional four zones with a conditional use permit These are single or multi-unit dwellings that are licensed or supervised by any Federal State or local health/welfare_agency that provides non-medical life supportive services in a family-like environment. Residential care facilities in San Luis Obispo are not subject to residential density limits, and are treated like.single-family homes in setting their narking requirements They require a building nermit and must comply with the usual development standards such as building setbacks, height lot coverage and require architectural review. Single dwellings occupied by up to five adults and which are not specially licensed or supervised,are also used as group homes-for low-income or disabled person These group homes are allowed by right in any residential zone and treated as single-family housing for purposes of residential density and parking. These uses must comply with all building and planning codes but are routine and typically do not require City approval other than approval of a building permit for new construction or retrofitting. Housing Element Policy 82.1 encourages development which meets special housing needs, including disabled and elderly persons. Under Program 8.3.7 the City will prepare and disseminate public information how to improve accessibility through Universal Design in new construction. Deleted 9 Non-conforming Uses and Structures Some dwellings are subject to premature deterioration and demolition because of their legal,non- conforming status. A legal, non-conforming use or structure is one that was established with permits,but is no longer allowed and could not be replaced under the current zoning regulations. 118 I � J� Attachment_ 2 City of San Luis Obispo Housing Element Examples include housing as a principal use in a manufacturing zone. Traditionally, lenders-and insurance carriers avoid lending or insuring project improvements for such non-conforming dwellings. An estimated 175 dwellings are considered non-conforming because of their location in the manufacturing or service-commercial zones. Housing Element programs address this issue by encouraging the conservation of non-conforming housing,and through programs that enable low- income homeowners to rehabilitate substandard housing through low-interest loans or grants. g) Processing and Permit Procedures The development review process, when required, adds time and costs to a building project. The City's development review procedures are designed to protect public health and safety, to simplify and expedite the review process whenever possible,and to ensure that new development meets State and local development standards within time limits set by State law. The Permit Streamlining Act requires final City action within three months of adopting a negative declaration or categorical exemption for a project, and within six months of the date a final Environmental Impact Report(EIR)is certified for a project. For minor or relatively simple items which are exempt from environmental review, such as administrative use permits, variances minor or incidental architectural review, minor subdivisions, and lot line adjustments, the processing time from submittal to final action lasts approximately two to six weeks. More complex planning items requiring initial environmental studies such as architectural review of new_commercial industrial and residential oroiects conditional use permits (Planning Commission) planned development/rezoning or standard subdivisions typically reouire eight to 12 weeks. Complex planning items, including general plan amendments rezonings annexations and zoning regulations text amendments require more detailed review and may require preparation of an environmental impact report. Consequently these items can take from six months to one year from the date an application is filed to final City action. Development review procedures such as public notices,hearings and environmental reviews-are mandated by State law and also add to the time needed for the approval of new housing oroiects Since 1994 the City has revised its zoning and. subdivision requirements to simplify and speed up development approvals For housing developers, time is money. Efforts to reduce the time required to process development applications can result in lower costs to the housing consumer. Examples of permit streamlining actions the City has taken.include: • Development exceptions typically follow an administrative use permit process taking---- Formatted:Bullets and Numbering two to three weeks,rather than the more time-consuming variance process • Clear development standards, guidelines and checklists available conveniently on-line • House relocation no longer requires a conditional use permit • Demolition or relocation of most buildings 50 years or older, but not historically listed 119 t - 33 Attachment 2 City of San Luis Obispo Housing Element no longer requires Cultural Heritage Committee historic significance review. • Minor housing additions, remodels and seismic retrofits may he approved by City staff as"minor or incidental"architectural review. • Revised procedures to allow City Architectural Review Commission to act on both design and development exception requests at the same time Individually-built single family dwellings are allowed by right in all residential zones and in Agriculture and Conservation/Open Space zones. These need only building permit approval prior to construction—typically an eight to 12 week approval process for such projects. They are also allowed in Office, Neighborhood Commercial and Retail Commercia z_ones_with approval___- Deleted:certain commeo;al of a conditional use permit. To encourage small residential projects and infill development, Program 6.3.14 exempts the construction, relocation, rehabilitation or remodeling of up to four dwellings of 1,200 square feet floor area from Architectural Review Commission (ARC). Such housing may be allowed with "minor or incidental' architectural review, a less costly and expedited review process taking about four to six weeks for approval. Single-family house additions and remodels generally require only a building permit averaging about two to three months from application to permit issuance Developments in historic districts and on historically-designated properties also require historic preservation review by the Cultural Heritage Committee. The Committee provides recommendations to the ARC or oche_r decision- making body regarding historic significance and preservation strategies Single-family residential developments of more than four units typically require more extensive_ deleted:R planning review, including environmental review, architectural review, and subdivision or land Deleted:W mag use review. Such-residential proiects are allowed by right in all residential zones subiect to Citv development standards,state and local subdivision standards and compliance with the California Environmental Ouality Act.. Residential subdivisions require three levels of review: design review by the Architectural Review Commission tentative tract (or parcel) map review by the Planning Commission, and environmental study/tentative/Final map approval by the City Council. Average permit processing time for a 100-lot residential subdivision is about six months to one year for planning approvals plus six months for building plancheck and permit issuance. Smaller residential developments can complete Planning review and permit processing in one Year or less if an environmental impact study is not required Multi-family residential developments are allowed by right in the R-2, R-3, and R-4 zones and are conditionally allowed in office and most commercial zones Apartments are also conditionallY.allowed in Commercial-Service and Manufacturing zones as part of live-work or work-live developments. Such proiects require environmental and architectural review. Conditional use permit review may he required if exceptions to City development standards are necessary. In historic districts or on historically-designated properties Cultural Heritage Committee is also required. Average permit processing time is about six to eight months for planning approvals. Plus six months for building plancheck and Permit issuance Mixed Use developments are allowed by right in six commercial zones and are conditionally allowed in the Service-Commercial and Manufacturing zones. Their processing and permit procedures are 120 I ' City of San Luis Obispo Housing Element ttacaAa similar to multi-family housing developments. .. . Deleted:For most mina a relatively fees h) Developmentsimplems whin are exempt from . . .. . - _ . _ _ _ _ _ _ _ . mitems review.such as administrative use permits,minor or Application and it fees incidental ambateamal review.minorP subdivisions,and la tine adjustments.the processing time from submittal to final Local governments levy fees and assessments to cover the cost of processing development action Ma�roxima ply fain i rix compiu planinirag items applications and permits, and to cover the cost of services. These fees help ensure high-quality requiring ioitu mvirmmcatal omies aamn as nmcmetreview afraw m®aoal. housing development and the provision of adequate public facilities and services. Development imusuia am residential projeers, fees are typically passed through to the consumer in the form of higher rents or sales prices for cmdmmal use permits and variances (plpinnmyl new housing. Consequently, City fees increase development costs and affect housing gor siarilard affordability. One method of evaluating whether San Luis Obispo's fees are excessive or pose subdivisions typically require eight to 12 barriers to housingdevelopment is to compare its fees to those in other nearby jurisdictions. weeks.I P P Y j •nm Drys most complex ptaoning items include geoaal plan ammdmmrs, trzomaIn 2003 the City surveyed development fees for.the County's seven cities, and for San Luis r s un ta��•Any Obispo County. The City also compared fees that the various jurisdictions would charge for a development lrq=that reyuaes an ER ran take six momhs a longer fram the dam commercial development and two residential development scenarios: a new 2,000-square-foot an appy is film m final city action house with a 500- square-foot garage, and a 10-lot, single-family residential subdivision. The Development review procedrtma,such as public noting,hearings and mvir®tnal survey showed that for most development fees, San Luis Obispo is significantly higher than the reviews,are mumbawd by Stam law and other county jurisdictions. Development fees are summarized in Table C-7, and comparative also add to the time nmdm for the approval of new housing projects. since development fees are shown for the development scenarios in Figure C-3. 1994 the City has revised its ming and subdivisim rgmremmts to simplify and In most cases, Cit development fees assume full cost recovery for actual costs to deliver the sped &-mlo pm,timirovals For Y P ry hoasing ae.dwas.time is money. Efforts planning, building and engineering services. Development review fees are updated annually, to reduce the time required to process in based on changes in the Consumer Price Index. Iowa hoomiinng am� Survey results show that San Luis Obispo development fees are generally higher than those of Examples of permit sncmimhag anion the City has taken Wad4 other jurisdictions in San Luis Obispo County. However,the City waives most development fees I for affordable housing. City policies already exempt very low- and low-income housing from `#>House relocation nes longe`require'a mndifimal ase Petmit4 most development review and permit fees. Housing Element Program 2.3.6 and 2.3.7 call for the <1nD®olitim orrelocation of most City to seek additional funding sources to help offset development-related City fees for buildings 50ya¢a olds,bm nm historically listed.no longer requires residential projects that include affordability guarantees for very-low, low-and moderate income Q.1tomi tiaiagecommitnm hismdo households. sigoificivia 1CY1Cw.J daMimr housing additions,remodels and scismic retrofits may be approved by City staff as"minor or meidenral"aseLimmaal revmw.I 121 Attachment 2 City of San Luis Obispo Housing Element 2 Table C-7 Com pa rative Developanent Fee Summa ry,2003' R�� 4 Annexation Cost+24% 2,500 3,000 Cost: 7,243 Prezoning +cost hrly.chg Appeals to 195 200 150 50%fee 100 500 0 484 Council/Board Architectural 415 362 2,197 Review,Full Architectural 220 951 Review,Minor or Incidental Certificate of 650 150 513 200 1,239 796 Compliam Condominium 2.205 1,075 4.000 3.593 Conversion +hdy fee EE[t Contract 15%of EBR 25%of Cost Cost+ 25%of +hely fee +hely fee EBR +hely fee 30% EBR +hrly fee I +hrly fee Environmental 15%Of 312 1.500 520 1,994 25%of Review/initial EBR EBR Study +hriy fee +hrly fee General Plan 1.370 850 613 lin goo 6" 5,462 4,000 Amendment +cost +cost note' instoric 0 Preservation Review(CHC) W Line 900 325 398 539 200 1,140 600 Adjustment I Lot Mager 605 55 41 199 Planned 1.155 512 1= 3.295 6,793 Development Permit/ F&Adadment 1,155 492 600 LAW specific Plan— 4= Residential swine Phut 1.155 cost goo cost 4000 Amendment +24% I +hrly fee I note Street 550 200 4223' 400 Abandonment Tentative Parcel 1.000 965 521 1.282+ 1300 1.1100 5,321+ 2.200 Map 10'2 per 177 per lot note lot Tent.Parcel Map IAW 50% 7,070 Amendment Tentative Tract 1.000 965 521 1.539+ 1.300 1.905+ 6,999+ 2.900 Map 205 per 115 per lot 177 per lot note IM Use Permit, 150 190 295 235 6% Administrative I Use Permit, 1.205 550 548 1.200 2,503 1,450 Major(PC) 122 „tiwchment 2 City of San Luis Obispo Housing Element Source: City of San Luis Obispo.Community lkvelopment Departmeni Notes: 'Table does not list all planning fees. Only those fees applicable to residential development are included. Fees have been rounded. 245%of full cost of time and materials With Initial Study Figure C-3 Comparison of Development Fees for a 2,000-Square-Foot, Single-Family House,20031 A.GW j9M AMM i4B77 fS00B NpGC pAao AABe SM= y o la Afeanewa Nmyo Gn Pao Rodes PY Beam Oow Se Omq d SLO Mono Bey Sen L OMVo San L Cdou 2 Source: City of San Ldis Obispo,Community Development Department ISan Luis Obispo 1 shows fees existing in April 2003;San Luis Obispo 2 reflects fee increase that took effect July 2003. Development fees include planning application fees, building plan check and permit fees, and Fire Department and Public Works Department plan check and inspection fees. For a 2,000- square foot-house with a 500-square-foot garage and a construction value of $168,000, development fees,in San Luis Obispo in July 2003 totaled $7,496, or about 4.4 percent of construction value. For the 10-lot, single-family residential subdivision, development fees totaled$110,864,or 6.6 percent of construction valuation. By comparison,development fees for the same hypothetical developments in the County of San Luis Obispo were$3,531 and$32,590, respectively,plus hourly costs. 123 I — � A achment 2 City of San Luis Obispo Housing Elemwt Development impact fees Like many California cities,San Luis Obispo levies impact fees to help pay for the public costs of new development. San Luis Obispo policies State that existing residents should not bear the costs of new development. Impact fees ensure that new development pays its fair share of the cost of constructing the water and sewer facilities,streets and other improvements necessary to serve it. Impact fees are based solely on the capital costs attributable to new development. In 2003 the impact fees and approximate costs are shown in Table C-8. Table C-8 Residential Development Impact Fees per Dwelling Unit,July 2003 City of San Luis Obispo ,`_+ 1§ogll..S~ ..I er�}CIIAuxArea°Su �_ yelo inent4 " EDU*`' Cltywl$e Aisport,�a�' DgIld10,{� Irks I11W, `�+0[Cut6 �fW swA ' t� y ,: * a�"dd>"Fdna� VlcBdde w �7 hr ro .r� +�'� b,�y�'� '�'! ryq:•..�.sJ x?:7 Y§F ''� �45uG 1� � `.n r Y � iL�%��.."aY-.`�3...�.F Tu�_.,a T.-✓."'�ir S .�.IS18� Y�'Sl M1';�}°,f"`ci�7`�� �'`C� ,•"=n^;`i^�r��r�Er:.;i Water Single-Family 1.0 $8,259 $ 764 — — — Multi-Family 0.8 6,607 1 611 -- -- Mobile Home 0.6 4,955 1 458 — wastewater Single-Family 1.0 $3,314 $746 $212 $376 $1,730 Multi-Family 0.8 2,651 583 170 301 1,384 Mobile Home 0.6 1,988 448 127 226 1,038 Transportation Single-Family 1.0 $1,491 — -- -- Multi-Famfly 1 1.0 1,323 — — — — Sour= City of San Luis Obispo,Community Development Depfr m *EDU mesas Equivalem Density Units,multiplied times impact fee. „Water surcharge does not apply m Edna-Islay Area 1) Infrastructure The City is committed to living within its resources, while planning to meet the future resource needs of its citizens. Residential development requires that adequate roads, drainage, water, sewer, fire protection and other public services be available. Generally, the developer provides facilities within or next to the development site, while the City is responsible for the facilities that serve a larger area. For example, the City provides arterial streets, a sewer treatment plant and main collection pipes, and water reservoirs,a treatment plant and main pipes. When an area 124 l - � htta%chment 2 City of San Luis Obispo Housing Element is subdivided, the subdivider installs local roads and utility lines. Historically, the costs of extending municipal services to support new development were offset by utility customers and taxpayers. Like many cities, San Luis Obispo requires developers to pay for the increased capacity of citywide facilities needed to serve new development. The developer's costs for installing public facilities within a development and for funding citywide facilities are passed on to occupants of the new housing units. Most sites within the City have streets and utility lines nearby,so they can be developed without significant extensions. However, expansion areas at the edge of the City will need service extensions. A specific plan is required for each major expansion area, and a development plan for each minor expansion area. These plans will address phasing of development and services, subject to availability of additional water resources. Increased water service capacity and transportation network improvements are needed before housing can be built in major expansion areas. The Land Use Element requires that before land is annexed to accommodate new development, the City should adopt a plan for how the necessary public services and utilities will be financed and provided. For major expansion areas, actual development can occur only when the City is able to provide adequate services for the annexed area as well as for existing and potential development elsewhere within the City. Water Sources The City of San Luis Obispo utilizes three water supply sources to meet the community's water demand:Santa Margarita Lake(also referred to as Salinas Reservoir),Whale Rock Reservoir and groundwater. The adopted safe annual yield from these three sources for 2003 is 7,510 acre-feet. To achieve the planned build-out population, the City's projected water demand is 9,096 acre- feu per year(afy). An additional 1,806 acre-feet is needed to achieve the City's planned build- out population of 57,200 persons. Table C-9 shows water available for new residential development in 2003, based on present per capita water demand for all uses and safe_ annual yield. Table C-9 Water Available for Residential Development,2003 City of San Luis Obispo Year ftulatIon Present Water Demand Safe Anmial Yield t Water Available In 6145 ow 2003 for Allocation 2003 44,359 7,204 a.f. 7510ad. 306 a.f. soder.City of San Luis Obispo Utilities tkp punct 'hw4 des re&tts=due to siltation to daze According to Water Management Element Policy 8.1.3, one-half of the water available for new development will serve intensification and infill development within existing City limits as of July 1994,and 153 acre-feet is available to serve development in expansion areas. One of the Council's major goals is to secure additional long-term water supplies to meet future 125 t1i� Cf sill' i 1i City of San Luis Obispo Housing Element population needs. The City is proceeding with the Water Reuse Project, which has the potential to be accomplished soonest. Projected water deliveries will begin in late 2004. Following initial construction, recycled water will offset approximately 130 acre-feet per year of current potable water used for irrigation. The project has a total potential yield of 1,200 acre-feet per year. Possible new water sources that the City is actively pursuing are summarized in Table C-10. Table C-10 Possible New Water Sources,2002- 2022 City of San Luis Obispo SourceEarliest Date Potential Added Available Yield Dwellings' Water Reuse 2 2004 130 273 Water Conservation 2005 340 714 Additional Groundwater 2006 500 1,050 Additional water 970 afy 2,037 potentially available in planning period Balance of Water Reuse 2008 1,070 2,247 Nacimiento Pipeline 2008 3,380 7,098 Salinas Reservoir 2010 1,650 3,465 Expansion Desalination 2008 n/a n/a TOTALS - 7,070 14,847 source: City of San Luis Obispo,Utilities Department 'City is pursuing multiple water projects through preliminary design stages. Not all will be implemented. Implementation will depend upon feasibility,needs and cost. =130 acre-fed available initially through recycling to augment potable water supply; additional amounts possible up to 1,200 afy,depending upon use of recycled water in Margarita/Airport areas. 'New water sources dependent upon funding availability. 'Amounts in acre-fed per year. One acre-foot equals 325,851 gallons. SOne acre-foot will serve three dwellings per year in San t.uis Obispo;assumes 70%of new sources used for residential development,30%for commercial uses. Wastewater Treatment(Sewer) The City's current wastewater treatment facility has a design capacity of 16 million gallons per 126 ( - 4D AI'laCtl(Tlel-iZ City of San Luis Obispo Housing Element �- day(mgd). According to the City's Utility Department,this is adequate capacity to meet current needs,plus residential growth anticipated during the planning period. The City is planning fora major plant upgrade in 2008, which will expand water treatment capacity to handle the General Plan anticipated growth,or a population of 57,200 by the year 2022. j) Public Services Police and Fire In 2003, Police Department staffing level is slightly below the standard set by the City of San Luis Obispo, as measured by the percentage of available time for sworn officers to respond to calls. The standard is for officers to have 30 percent of their On-Duty Time available for patrol response.According to San Luis Obispo Police Department,the percentage of available time has averaged 25 percent for the previous quarter,and while Cal Poly University is in regular session, typically stays well below the 30 percent standard. According to the National Fire Protection Association,the ratio of emergency services personnel (firefighters and emergency medical services) should not be less than I/1,000 residents to maintain public safety. San Luis Obispo's peak emergency service population, due to daytime employment (including Cal Poly University) is estimated to be 70,000 persons, requiring 70 firefighter/EW personnel to meet the desired service ratio. The maximum number of city firefighters/EMTs is 45,or a daytime service ratio of about 0.6 emergency personnel per resident. Increased residential development will increase the demand for emergency services and raise city costs for police and fire services. Community needs for increased police and fire services resulting from residential growth will be met through, development impact fees, environmental impact mitigation imposed at the time of development,or through user fees. k)Schools Grade school enrollment in San Luis Obispo has declined in recent years. San Luis Coastal Unified School District's enrollment in San Luis Obispo schools, as of June 2003, is 4,317 students. Enrollment is down by 176 students from last school year. According to District studies, new residential development generates 0.65 school child per dwelling. The District estimates that one or possibly two additional school sites will be needed to serve planned residential growth in the southern part of the City. The Margarita and Orcutt Area Specific Plans ' are expected to include potential elementary school sites. Due to district budget constraints,new dwellings will have serious adverse consequences for school staffing, facilities and programs unless new development adequately mitigates the adverse impact on school facilities. 117 l —t Attachment 2 City of San Luis Obispo Housing Element 2. Non-governmental Constraints a) Land Costs Land is the second largest component in the cost of new housing,accounting for over 20 percent of development costs. Because land costs are so high,it is difficult to build affordable housing if the project involves purchasing land at today's prices. Land costs directly affect the cost of housing. In turn, land values are determined by a number of factors. In terms of residential constraints,the most important of these is land availability and permitted residential density. As land becomes scarcer, its price increases. Other factors being equal, the more residential units allowed,the higher the land value. In.2003 the cost of an undeveloped,average-size,single-family residential login San Luis Obispo was estimated by members of the Board of Realtors multiple listing service to be between $250,000 and$375,000,depending on its size and location. By contrast, in 1992 the cost of a typical single-family residential lot in San Luis Obispo ranged from $140,000 to $200,000, an increase of about 88 percent when compared to the 2003 figures. The average land cost per square foot for 10 vacant,single-family(R-1 zone)lots sold in San Luis Obispo in 2002 was$31, and ranged from a low of about $17 to a high of$41 per square foot. In 1993 the cost for undeveloped land suitable for housing ranged from$8 to$12 per square foot. The situation for vacant,multi-family zoned residential land is similar. Between 2000 and 2003, sales prices for vacant land suitable for multi-family housing ranged from $8 to $43 per square foot,averaging about$23 per square foot. Buoyed by record-low interest rates, the demand for residential real estate has continued to be very strong since 2000, despite a slowdown in other city and county economic sectors. Land suitable for residential development within City limits and in expansion areas adjacent to the City is typically priced to reflect its"highest and best use." b)Construction Costs Technological advances in home building have increased efficiency and reduced the proportional costs of labor and materials. Nationally,labor and materials accounted for 69 percent of the cost of a new home in 1949. By 1989, that percentage had dropped to 53 percent (National Association of Home Builders). Reduced construction costs have, however, been more than offset by increased land costs. According to the City's building official, the construction value of an average Type V - wood frame residential construction in 2003 is$83 per square foot, up from$64.80 per square foot in 1993. For a typical, 1,850-square-foot detached house with a garage on a standard-sized lot in San Luis Obispo,total development cost in 2003,-including land,construction,and city fees—is approximately $354,275. Estimated land cost accounts for 53 percent of the total cost, construction about 43 percent,and city fees around four percent. 128 — 4a `-Ca - Attachment 2 City of San Luis Obispo Housing Element 2 b) Availability and cost of financing Mortgage interest rates significantly affect housing affordability. As interest rates increase,fewer buyers can afford to purchase a home. As rates decrease, the number of potential homebuyers increases. In 2003 mortgage interest rates for a conventional,30-year fixed loan range from 5.50 to 5.9 percent, and 15-year and adjustable rate mortgages are 5.25 percent and 4.75 percent, respectively. A wide variety of loan packages and terms are available; making financing accessible for most home buyers with good credit and moderate-to above-moderate incomes. Although low interest rates in 2003 have made housing more affordable than in recent years, the necessary down payment still can pose an insurmountable obstacle -= particularly to first-time homebuyers. Lenders typically prefer a 20-percent down payment on a mortgage loan. Prospective buyers who might be able to support an 80-percent loan,often do not have the financial resources to make the required down payment. A median-priced home in San Luis Obispo costs$442,500(SLO Board of Realtors, May 2003), requiring an$88,500 down payment to get into a new house. Lenders will sometimes loan up to 90 percent of the asking price,but an applicant's credit is much more closely scrutinized, and monthly payments and monthly income requirements are significantly higher. Consequently, financing can pose a major obstacle for first-time or moderate income homebuyers,even for those who might otherwise qualify fora conventional loan. Interest rates are determined by national economic policies and conditions,and there is little that local governments can do to affect interest rates. Cities may,however,offer interest-rate buy- downs,gap financing or other programs to expand home ownership opportunities for low-and moderate income and first-time homebuyers. Although mortgage interest rates have remained relatively low since 2001,rates can change quickly. In mid-2003 interest rates are rising slowly and appear likely to return to more normal levels as the national economy rebounds in 2004. d)Insurance Costs Insurance costs have become an important constraint to building affordable housing. Construction liability insurance,needed by builders and required by lenders,has become difficult to obtain in California and when available, is extremely expensive. According to the Homebuilders Association of the Central Coast, liability insurance costs can equal about two percent of a unit's selling price,or$6,000 for a$300,000 condominium. In part, insurance cost increases resulted from unprecedented construction defect litigation, particularly in California,in the 1990s. Most of that litigation focused on residential condominiums. Condominium construction, a major type of new housing in San Luis Obispo in the 1980s, is one of the most effective approaches for providing higher-density, ownership housing for moderate income buyers. Condominium construction fell dramatically in the 1990s. According to local builders, this was due in part to construction defect litigation and to high insurance costs. In 2002 Senate Bill 800(Burton)was signed into law,clarifying the grounds for construction defect lawsuits and limiting builder liability for such actions. In 2003 there appears to be renewed builder and 129 Attachment 2 City of San Luis Obispo Housing Element =, `a�: l "i18i It c consumer interest in residential condos,and city housing policies promote this housing type. e)Design Expectations Housing preferences have changed dramatically in the last generation,as shown by a comparison of tract housing built in town around 1960 and tract housing built today. Detached homes are generally larger and include more built-in features and amenities. Even many attached condominiums, which have become owner-occupied"starter" houses, include more indoor space and amenities than older,detached housing. Those seeking homes today are children of the generation that experienced the greatest increase in real house buying power,and they often prefer large,detached homes similar to those in which they were raised. These expectations are often unrealistic given the high cost of living in California when compared with other States, and the relatively high cost of living in San Luis Obispo when compared with other areas. Homebuyers moving to San Luis Obispo from urban areas often enjoy higher median incomes and arrive with substantial equity from selling another home elsewhere. Their buying power, together with the desire for a better life in a smaller city, has fueled the demand for larger,detached homes. f)Investment expectations Investment expectations also can add to the cost of housing. Nationally,Americans place a high value on home ownership because it provides a hedge against inflation and allows us to build substantial equity in a relatively short period of time. Ironically, the favorable tax treatment established to protect home ownership has helped push the cost of housing beyond its value as shelter alone, and has created a competitive market for real estate as a commodity or financial investment. Home ownership has become an elusive goal for many first-time buyers, as prices increased in response to market expectations. Renters find themselves paying a larger and larger share of their income for housing,as rental properties are resold to a succession of landlords. Many home owners and owners of rental property benefit from significant tax advantages. In 2003 mortgage interest on loans for both a principal home and a second home is usually deductible for taxpayers, and interest on home equity loans also is usually deductible. In addition, homeowners can defer capital gains resulting from the sale of a house so long as another home is purchased at the same or higher cost, and may avoid paying taxes on capital gains from the sale of a home after the age of 55. Owners of rental property can deduct expenses such as property taxes, mortgage interest payments and maintenance costs. Also, since rental property theoretically depreciates in value over time,owners can deduct part of a property's value each year from their taxable income. While depreciation allowances provide an investment benefit for each successive property owner,they also offer a strong incentive to resell a property once the largest share of depreciation has been taken. The new, higher sales price is then offset by increased rents. Sales commissions, typically ranging from four to six percent of the sales price,also affect housing costs. 130 f - � City of San Luis Obispo Housing Element Attachment 2 3. Regional Housing Need Allocation and Quantified Objectives The City's Regional Housing Needs Allocation(RHNA)as determined by the San Luis Obispo Council of Governments is shown in Table C-11. Table C-11 Regional Housing Need Allocation,January 2001-July.2009 Cityof San Luis Obispo Income Group, Numb'ec of New Quantified _Dw Allocated Objectives Very Low 1,484 1,390 Low 844 777 Moderate 870 817 Above Moderate 1,185 1,103 TOTAL 4,383 4,087 Source: City of San Luis Obispo,Community Development Department State housing law (Article 10.6, Section 65583(6)(2) of the California Government Code) recognizes that total housing needs identified for a jurisdiction may exceed available resources and the ability of the jurisdiction to satisfy this need within the context of State and local General Plan requirements. Under these circumstances, a jurisdiction's quantified housing objectives need not be identical to the total housing needs. San Luis Obispo has evaluated its ability to accommodate the RHNA number of 4,383 dwellings by July 2009. Limited water supplies prevent the City from achieving the RHNA number within the planning period. The problem is chiefly one of timing,since there is sufficient land suitable for residential development to accommodate the RHNA number within the planning period. Planned water supplies will allow this number of dwellings to be achieved over a longer period. As shown in Table C-11, the City's quantified objectives are less than the RHNA number. The quantified objectives include: 1) Dwellings built and granted occupancy during the period from January 1, 2001 through July 31,2003; 2) Dwellings expected to be built and receive occupancies between August 1, 2003 and December 31,2003 based on current construction inspections;and 3) Potential residential development between January 1, 2004 and July 1, 2009, based on anticipated water supplies; 4) Construction of up to 1,178 dwellings on Cal Poly University-owned land for students, faculty and staff. 131 l ` � City of San Luis Obispo Housing Element :n:tta c h i-I i s(";t 2 a) Residential Growth Implications of Achieving Quantified Objectives During the Housing Element planning period, the City could accommodate up to 4,087 new dwellings, as shown in Table C-11. Of the total, up to 1,178 units will be located on State- owned land, plus another 2,167 units will be targeted for very-low and low-income households. These units are exempt from the one percent growth target in the Residential Growth Regulations. During the planning period, at least 742 non-exempt units will be developed. The resultant residential growth rate during the planning period is 0.51 percent. This is less than General Plan anticipated residential growth rate of one percent per year. Achieving the quantified objectives is contingent upon the City having adequate funding to undertake the necessary capital improvements for the expanded water conservation and groundwater programs in 2005 and 2006 that will add 840 acre-feet and the capacity to serve 1,764 additional households, and upon private development decisions and economic factors outside of city control. And while the attainment of these housing objectives is theoretically possible given available land resources and expected water and sewer capacity, it is highly unlikely these numbers of units will actually be produced without significant public subsidies. In 2001,Department of Finance figures estimate the total number of city housing units at 19,355. The construction of 742 moderate and above-moderate units would represent about 15% of the City's planned growth capacity between 2001 and 2022 (4,945 units), the anticipated build out date. As shown in Figure C-4,residential construction is cyclical following regional and national trends. Between 1980 and 2003, city housing production averaged 196 units per year. This average rate could increase to up to 225 units per year after 2004,and the City could still expect to reach buildout in the anticipated timeframe. During the 7 Vi year planning period,the City will grow at a rate of about 99 non-exempt units per year.. The City recognizes its responsibility to reduce constraints to achieving housing needs and to expand housing opportunities for all income groups, to the extent physical, environmental and financial limits allow. The City intends to help residents secure safe, good-quality, affordable housing, and to meet regional housing targets in the same percentage allocations by income group as prescribed in the RHNA Plan. To help achieve this goal,the City intends to encourage housing production by zoning adequate sites for future housing, securing the necessary water resources and sewer capacity to accommodate new development, and by exempting moderate income housing from residential growth regulations to encourage affordable housing. b) Water Supply Constraints In 2003 the City's safe annual yield is 7,510 acre-feet. Estimated water demand for 2003, based on an adopted per capita water use rate of 145 gallons per person per day, was 7,204 acre-feet, leaving 306 acre-feet per year (afy) available for new development. With completion of the initial phase Water Reuse Project expected in 2004, an additional 130 afy will be available initially for new development.Based on past water use, it can be anticipated that seventy percent 132 A"'l zc.,irnLTt 2 City of San Luis Obispo Housing Element 1 !?• ' L. of available water supplies will be used for residential development, and 30 percent for commercial uses. Table C-12 Maximum Residential Development Potential Based on Anticipated Water Supplies,January 2003—July 2009 City of San Luis Obispo Source Earliest Acre Feet/Year Potential Dwellin Available Difference between current 2003 306 643 use and safe annual 4eld Water Reuse Projece 2004 130 273 Water Conservation 2005 340 714 Additional Groundwater 2006 500 1,050 Supply Subtotals n/a 1,276 2,680 Water required for housing built between 1/01/03- n/a [1921 n/a 12/31/034 Available Water Supply for Residential Development, n1a 1,084 2,276 maximum#of 1/1/047/1/08 units possible Source: 2003 Water Resources Status Report,City of San Luis Obispo,Utilities Department City is pursuing multiple water projects through design stage. Implementation depends on cost and need. 2130 acre-feet available in planning period. Up to 1,070 afy additional as Margarita/Airport Areas develop and can use recycled water. 570%of available water used for housing:30%for commercial uses. One acre-ficet/year will supply enough water for three dwellings. Between 1/1/03 and 12/31/03,583 in-city dwellings are anticipated,@.33 afy/dwelling=192 afy. 51,084 afy X 0.7%X 3=2,276 dwelling units possible between I/l/04 and 7/1/08. Steps the City has taken to secure additional water supplies include: • Water reuse became economical in 1994 after the City completed a$25 million upgrade of the Water Reclamation Facility to comply with requirements for discharge to San Luis Obispo Creek. The tertiary treatment required for discharge to the creek produces recycled water that can be used to irrigate parks, playgrounds, agricultural crops and landscaping. The recycled water also may be used for industrial processes,construction and many other non-potable uses. • In 2003 consultant proposals were evaluated for the engineering work necessary to increase the use of groundwater resources. The schedule for the project envisions this new source 133 Attacl�mnrjt 2. City of San Luis Obispo Housing Element fully available in the summer of 2005. The goal of the project will be to increase groundwater production by approximately 500 acre-feet per year. • The 2003-05 Financial Plan includes an expanded Water Conservation Program to be implemented beginning in the 2003-04 fiscal(does everyone know what your fiscal year is — i.e., ends Dec. 31 or June 30?) year, with the potential to reduce overall water use by approximately 340 acre-feet per year, making this amount available for additional development. • The County of San Luis Obispo is administering the Nacimiento Pipeline Project. The City has requested 3,380 acre-feet for planning purposes. In July 2003 the revised Environmental Impact Report is being evaluated, and the document is scheduled for certification by the County Board of Supervisors in late 2003. • The City of San Luis Obispo has been pursuing the Salinas Reservoir Expansion Project for over 11 years. The decision to go forward with project development is on hold, pending a judgment by the participating jurisdictions (County of San Luis Obispo, Paso Robles, Atascadero and San Luis Obispo)on developing the Nacimiento Pipeline Project. c) Land Resources and Development Rate The City is actively pursuing annexation of two major expansion areas that will, upon completion,add approximately 1,850 dwellings to the housing stock. Before these areas can be annexed,City policies require preparation of a Specific Plan. The Draft Margarita Area Specific Plan has been completed and a Draft EIR circulated for public comment.Annexation is likely in 2004,followed by subdivision processing and development review. At the earliest, new housing would be ready in late 2005. The Orcutt Area is earlier in planning stages. A Draft Orcutt Area Spec Plan has been prepared, with some revisions underway in 2004 to reflect higher density and innovative design approaches for this new neighborhood. Allowing for completion of the Specific Plan and the EIR process to follow,the Orcutt Area is expected to begin construction no earlier than 2007. During the Housing Element planning period, housing needs primarily will be met through in- city infill and intensification,and through development of the Margarita Area. A 2003 inventory of vacant and underailized land showed an in-city development capacity of 3,149 additional density units. Under City standards,a density unit has the following equivalencies: Studio Unit —0.50 Density Unit One-Bedroom Unit —0.66 Density Unit Two-Bedroom Unit — 1.00 Density Unit Three-Bedroom Unit — 1.50 Density Units Four or More Bedrooms —2.00 Density Units 134 AUa�,'hinent 2 City of San Luis Obispo Housing Element This development capacity is equivalent to 3,149 additional two-bedroom dwellings, or 2,099 three-bedroom dwellings, or a combination of different dwelling types with density unit values totaling 3,149. And while theoretically possible under City standards, actually achieving this development potential is highly unlikely. This rate of development, 3,149 dwellings (assuming two bedroom dwellings) in 7.5 years,averages 420 units per year. As shown in Figure C-4, this rate of construction has been achieved in only about nine of the 44 years between 1955 and 1999. Residential construction averaged only 83 dwellings per year between 2000 and 2002. Figure C-4 Residential Construction, 1955-1999 City of San Luis Obispo Net Increase In Dwellings(Permits Issued) 700 800 500 e 400 300 200 100 0 1 1 0eh� e59 �1 N * 41e1, e"A51`' e'0 450CPee10 # ep191° Z40c1 Years Source: City of San Luis Obispo,Community Development Department,2000 Between 1980 and 2003, an average of 196 dwellings was added each year. Residential growth management rules began in 1982, following General Plan policies targeting a two- percent population growth rate during the 1980s and a one percent growth rate thereafter. Growth Management rules were revised in 1996 to exempt very low- and low-income housing. In 1987 Growth Management Regulations were suspended when the City adopted Water Allocation Regulations. In 1999 the City Council adopted new regulations(Municipal Code Chapter 17.88) and a phasing schedule to manage growth. The new regulations emphasized scheduling of development in the major annexation,while the timing of infill projects would not be regulated. New dwellings affordable to residents with very low or low incomes were exempt from the one- percent growth policy and the regulations. Across these policy changes, the cyclical construction pattern continued. Population changes are shown in Table C-13. These also tend to correspond to regional and national economic cycles,and show an average annual growth rate of 1.02 percent during the 26- year period from 1977 to 2002. Future growth rates are likely to follow this trend. 135 ( - 4q .Attach-n tt 2 City of San Luis Obispo Housing Element Table C-13 Population Change, 1977-2002 City of San Luis Obis o 3-YEAR 5-YEAR YEAR'S ANNUAL ANNUAL YEAR POPULATION CHANGE AVERAGE AVERAGE 96 96 96 1977 34,282 1978 33,756 -1.5 1979 1 34,143 1.1 -0.2 1980* 34,252 0.3 0.0 1981 34,759 1.5 1.0 0.4 1982 35,239 1.4 1.1 0.6 1983 35,660 1.2 1.4 1.1 1984 36,407 2.1 1.6 1.3 1985 37,378 2.7 2.0 1.8 1986 38,205 2.2 2.3 1.9 1987 38282 0.2 1.7 1.7 1988 39,858 4.1 2.2 2.3 1989 41,207 3.4 2.6 2.5 1990* 41,958 1.8 3.1 2.3 1991 42,178 0.5 1.9 2.0 1992 42,922 1.8 1.4 2.3 1993 43,397 1.1 1.1 1.7 1994 43,919 1.2 1.4 1.3 1995 41,295 -6.0 -1.2 -0.3 1996 41,404 0.3 -1.5 -0.3 1997 41,807 1.0 -1.6 -0.5 1998 42,201 0.9 0.7 -0.5 1999 42,446 0.6 0.8 -0.6 2000* 44,174 4.1 1.9 1.4 2001 44,218 0.1 1.6 1.3 2002 44,426 0.5 1.6 1.2 26-year Avaage 1.02% 1.03% 0.95% Source: City of San Luis Obispo Community Development Dep==t -U.S.Census figures;all others California Department of Finance. 136 SIATEPErai if[1RNIA.AI slggae 7Rn g AT10N ANG HatjSING AGENCY yRNOLO SCMp(pR7p�R-,P.Rt G, a , DEPARTfi TENT OHOUP-1110 AND COMMUNITY DEVELOPM. .f Division of Housing policy Development : 1800 T Id sweet smm 430 P.O.Boz 952053 82CW anW.CA 94252-2053 (418)32131771 PAX(918)327-2843 nraiw.IrcQ.Cd.(iov - Attachment 3 November 12,2004 Mr. John Mandeville Community Development Director City of San Luis Obispo 990 Palm Street San Luis Obispo,CA 93403-8100 Dear Mr.Mandeville: RE: Review of the City of Sam Luis Obispo's Revised Draft.Housing Element Thank you for submitting revisions to San Luis Obispo's housing element received for the Department's review on September 15,2004. As you know,the Department is required to review draft housing elements and report our findings to the locality pursuant to Government Code Section 65585(b). A series of telephone calls over the past few months with Mr Jeff Hook,Project Planner,facilitated the review. The Department is pleased to find the draft revisions address the statutory requirements described in the August 2,2004 review. The element will be in full compliance with State housing element law (Article 10.6 of the Government Code)when adopted with all revisions and submitted for review pursuant to Government Code Section 65585(g). The Department commends San Luis Obispo for its leadership and commitment to develop a meaningful and compliant housing element. The revised element contains a more thorough iescription and analysis of permit processing procedures, as well as stronger programs to establish highe-density zoning designations within the designated Expansion Areas(Margarita and Orcutt Specific Plan areas), as described in Programs 6.3.5 and 6.3.6. Other laudable programs include: (1)adapting permit streamlining procedures(Program 2.3.4); (2)providing technical assistance to dt:velopei(s of affordable housing(Program 2.3.12);and,(3)providing incentives to encourage mixed-use development in the downtown area(Program 6.3.3). Effective implementation of the element's policies and programs will ensure the City of San Luis Obispo can successfully address its existing and futtre housingneeds. Pursuant to Government Code Section 65400,the City should report on the effectiveness of its housing element,with an emphasis on strategies to facilitate multifamily develol►ment in the Margarita Specific Plan and downtown core areas, along with other actions that will assist the City in accommodating its regional share need. The annual implementation reports are required to be submitted to the local legislative body and this Department by October 1 of Back year. Mr.John Mandeville Attachment 3 Page 2 The Departme-y t'.r determination that San Luis Obispo can accommodate its share of the regional housing reed for lower-incorie households is based on the availability of siTfficie it sites allowing 2g�w:lli,g i�.its pe;awe(or 18 dens+_ty„nits; as described in Table 11. Pursuan� to GoveTmnent Wut ScGtiGil v�°v�i�,t+a Ci j�f 53n T.`=1� QZ):�p0 miict Pnc�tre itg supiply of adegiu ate sites is maintained tiiruughuut the piauuiT. perl'cd. Fi:ith:r, Sec*.io^.65$ 3:!'1 grpl,;hits Inca] governments • a o:r>�.,,der its h,t,cino Qletttent from lowering a residential density Wcu Lr,dctw—�n::.i:agµ....,1.%..t,....•-.- unless the locality makes certain findings. Saiz Luis Obispo s :;gid TaaaO:litor t'ae s:=il•'-b'�'*j ^f appropriately Zoned sites and the final development density of approved projects :o cases a cowF1'w"•c= with these requirements. In closing.the Department appreciates Mr.Hook's expertise, hard work,and cooperation throughout the review proce*s. We looks forward to receiving the City's adopted housing el.ment(as amended). if we can be Cf f',Vher assistance;oryou have any questions,please contact Don Thomas, of our staff at(916% Y,5-S854. In accordance with requests pursuant to the Public Records Act,we are forwarding copies of this letter to the persons and organizations listed below. Sincerely, ell �� rr ieputy a"iu'i'c".C•tor , cc: Jeff Hook,Project Planner,City of San Luis Obispo Mark Stivers,Senate Committed on Housing&ComATramV Development Suzanne Ambrose,Supervising Deputy Attorney General, AG's 0115ce Teary Roberts,Governor's Office of Planning and Researau Nick Cammarota, California Building Industry Association Marcia Salkin,California Association of Realtors Marc Brown, California Rural Legal Assistance Foundation Aob Wei^.er,ral;forn;a cnatitian for Rural Housing J Dvjgla ATTrp r;vii 4.golL nnc v $ i iuea-afa ',LOU .1m ,este n, enter on Law and Poverty J..L.Ynn 1�!laCl LWI,w'e�aCila l Y�lLVA Un Taw and.Poverty Alexander Abbe,Law Firth of Richards,`vh atson&Gemsl'.on Micbael G. Colantuono, Colantuono,Levin&RoZclI, APC Ilene J. Jacobs,California Rural.Legal Assistance, Inc. Richard Marcantonio,Public Advocates r -� a Attachment 4 RESOLUTION NO. (2004 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO AMENDING THE HOUSING ELEMENT OF THE GENERAL PLAN WHEREAS, State law requires cities and counties to adopt a general plan. The general plan includes seven required elements; one of which is the housing element. The housing element must be updated every five (5) years or as otherwise provided by State law; and WHEREAS, the Housing Element of the San Luis Obispo City General Plan was adopted on March 30, 2004 in compliance with State law; and WHEREAS, the adopted Housing Element was forwarded to the State Department of Housing and Community Development (HCD) for review, as required by State law; and WHEREAS, in response to HCD comments, the City submitted draft amendments to the State that provide additional information and clarification to meet State housing law but that do not change adopted housing goals,policies or programs; WHEREAS, the Community Development Director has determined the proposed amendments are non-substantive in nature, do not constitute a "project" as defined in California Environmental Qualify Act Section 21065, and do not require environmental review beyond that already completed under an initial environmental study prepared by the City (City File Number ER 33-02), and as provided in the Negative Declaration approved by Council Resolution 9543 (2004 Series); and WHEREAS, the Planning Commission of the City of San Luis Obispo held a public hearing on December 8, 2004, in which it considered public testimony; comments from the California Department of Housing and.Community Development, proposed amendments to the adopted 2004 Housing Element, the staff report and pertinent correspondence; and, WHEREAS, the Planning Commission, after said public hearing, endorsed the amendments to the General Plan Housing Element as shown in the Draft Amended 2004 Housing Element and adopted a resolution recommending the City Council approved the amendments as proposed; and WHEREAS, the City Council held a public hearing on December 14; 2004 to consider public testimony, Planning Commission recommendations, comments from the California Department of Housing and Community Development, proposed amendments to the adopted 2004 Housing Element,the staff report and pertinent correspondence. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Findings. This Council, after considering the proposed amendments to the 2004 Housing Element, the Planning Commission's recommendations, staff recommendations, public testimony and correspondence, and reports thereon, makes the following findings: I s� Attachment 4 Resolution Na (2004 Series) Page 2 1. The proposed amendments, contained mainly in Appendix C, "Housing Constraints and Resources", provide additional. background information or clarification to meet State requirements; they do not change adopted policy or programs. Other minor graphic and editorial changes to Chapters 1-4 and to the appendices are intended for clarity and to add interest. 2. The proposed amendments are consistent with the General Plan and with the City Council's actions and intent in adopting the 2004 Housing Element (Council Resolutions 9543, 9344, and 9545, 2004 Series). 3. The proposed amendments are appropriate and necessary to ensure that the City's previously adopted Housing Element meets State law. 4. Achieving Housing Element certification will promote affordable housing opportunities and help achieve adopted housing goals by making the City eligible for various housing grants and financial incentives, and will foster cooperation among local and state agencies in addressing an urgent need for affordable housing in San Luis Obispo. SECTION 2. Environmental Determination. Council hereby determines the proposed General Plan Housing Elements amendments are non-substantive in nature, do not constitute a "project" as defined in California Environmental Quality Act Section 21065, and do not require environmental review beyond that already completed under an initial environmental study (City File Number ER 33-02), and hereby affirms that the Negative Declaration approved by Council Resolution 9543 (2004 Series) still applies and that no further environmental review is required. SECTION 3. Approval of Amendments to the 2004 Housing Element. Council hereby approves the Amendments to 2004 Housing Element, as set forth in Exhibit A. SECTION 4. Publication and Availability. The Community Development Director shall cause the amended Housing Element to be published and made available to City officials, concerned agencies, public libraries, and to the public. The Director shall also transmit a copy of the amended Housing Element theStateDepartment of Housing and Community Development. SECTION 5. Effective Date. The Amended 2004 Housing Element shall become effective immediately upon adoption of this resolution. Upon motion of , seconded by , and on the following roll call vote: AYES:. NOES: ABSENT: The foregoing resolution was adopted this 14th day of December, 2004. i -s4 I Resolution No. (2M Series) Attachment 4 Page 3 David F. Romero, Mayor ATTEST: Audrey Hooper City Clerk APPROVED AS TO FORM: Jon han . Lowell City Attorney Exhibit"A": Draft Amended 2004 Housing Element Jh/LAmsingcI=cntnpdatdccm 12-14-04 council MR�D� 12-14-04 acenba Pepont 1w.N.�, CITY OF SAN LUIS O B I S P O FROM: Ken Hampian, City Administrative Officer Bill Statler, Director of Finance & Information Technology SUBJECT: GOAL-SETTING PROCESS FOR 2005-07 CAO RECOMMENDATION Approve the goal-setting process for 2005-07. DISCUSSION Background On August 17, 2004, the Council approved the goal-setting and Financial Plan schedule for 2005-07, including the conceptual approach to Council goal-setting as part of this process. Under this approach, we will continue using a multi-year budget that begins with the Council setting goals for the most important things for the City to accomplish over the next two years. Based on our experience over the past fourteen years, this has been a successful process in assuring that the fundamental purpose of the City's budgetary process is achieved: linking what we want to accomplish for our community over the next two years with the resources necessary to do so. Summary of Significant Changes Building on our past successes, we plan to follow a similar approach to the one we used two years ago. However, there is one notable change in the proposed goal-setting process for 2005- 07: Combination of Public Comment and Small Group Discussion at the Community Forum. This is an effort to give the best of both worlds. Some people like to provide public comment. Others want to learn and interact in a smaller group around their topic. The proposed format offers both as well as opportunities for attendees to participate in a "straw" prioritization process at the end of the meeting.. We believe that the proposed improvements in the Community Forum will enhance the breadth and quality of public involvement. Two-Step Approach With the November 18 and December 14 budget workshops as the foundation, we again recommend using a "two-step" approach to the Council goal-setting process. As previously approved by the Council,Don Maruska will serve as our facilitator at both workshops. 1. Community Forum. Held on the evening of Wednesday, January 12, the purpose of this forum is to solicit suggested goals and work programs from Council advisory bodies, community Goal-Setting Process for 2005-07 Page 2 groups and interested individuals. In notices sent to these groups, we have requested that written suggestions be provided to us by January 3, 2005. To ensure that adequate space is available for this workshop, it will be held at the Ludwick Community Center. 2. Council Goal-Setting Workshop. Following the receipt of written and oral comments at the January 12 Community Forum, the Council goal-setting workshop will be held on Saturday, January 29, in the City/County Library Community Room. Goal-Setting Process Exhibits A, B and C describe the proposed objectives, guidelines, schedule and roles for both the community forum and goal-setting workshops, summarized as follows: Community Forum The January 12 community forum is intended to solicit suggestions from Council advisory bodies, community groups and interested individuals on proposed City goals and fiscal issues. City staff will summarize the results of the forum and distribute them to the Council by Tuesday, January 18, 2005. Council Goal-Setting Workshop At the all-day January 29 workshop, the Council will review the consolidated summary of goals presented by Council members to ensure clarity, completeness and understanding; and then narrow the list to finalist goals that are supported by at least three Council members. After this step, the staff will prepare a final listing that the Council can use in prioritizing goals. In 2003- 05, the Council used a ranking system of 5 through 0 for each candidate goal, summarized as follows: 5 Most important, highest priority for City to achieve over the next two years. 4 Very important goal to achieve. 3 Important goal to achieve. 2 Address if resources are available. 1 Defer to 2007-09 for consideration. 0 Not a priority goal. Depending on the number of candidate goals, total points available to individual Council members have ranged in the past from 50 to 75—about 3 points per candidate goal. For example, if there are 15 goals in the final listing, then 50 points might be about right; if there are 25, then 75 might be appropriate. Staff will summarize the results of the Council's ranking during a break at the workshop. Based on our past experience, it is likely that three priority "tiers" will emerge from this process: 1. Major City Goals. These represent the most important, highest priority goals for the City to accomplish over the next two years, and as such, resources to accomplish them should be included in the 2005-07 Financial Plan. If the work program approved by the Council for a l— oL Goal-Setting Process for 2005-01 Page 3 Major City Goal is not included in the CAO's Preliminary Financial Plan, compelling reasons and justification must be provided as to why resources could not be made available to achieve this goal. 2. Other Important Goals. Goals in this category are important for the City to accomplish, and resources should be made available in the 2005-07 Financial Plan if at all possible. 3. Address As Resources Permit. While it is desirable to achieve these goals over the next two years, doing so is subject to current resource availability. (Note: None of the goals from the 2003-05 process fell into this category). The goal-setting process also will elicit the Council's interests in potential revenue enhancement and service reduction possibilities in order to support desired goals, especially in light of the very tough fiscal outlook facing the City. If needed, continued consideration of goals for 2005-07 is scheduled for the next regular Council meeting following the workshop (February 1, 2005). Council Homework Assignment Provided in Exhibit D is the Council's "homework assignment" for the January 29 workshop. It requests that Council members prepare and submit up to seven candidates for Major City Goals by Friday, January 21. Finance will then compile a verbatim, composite list organized based on common topics, without identifying who submitted the particular statements. We recommend that Council members refrain from releasing their personal lists so that each Council member has flexibility to review all of the submissions and discuss them at the goal-setting workshop before staking a position. This consolidated listing will distributed to all Council members on Tuesday, January 25, for review and consideration before the workshop. Major City Goal Criteria Provided in Exhibit E is the suggested "criteria for major City goals" which have been used by the Council for the past twelve years. Extensive Notification We have made extensive efforts to invite community and advisory body participation in this process, including: 1. An extensive series of briefings and follow-up reminders with advisory bodies on their important role in the process in providing the 2. Notices to about 200 community groups and interested individuals inviting them to submit written suggestions and participate in the community forum. � - 3 Goal-Setting Process for 2005-07 Page 4 3. "Community Budget Bulletin' inserts in our utility bills requesting goal suggestions from our citizens and inviting them to participate in the community forum. This will reach about 14,000 households. 4. Display ads will be run in January in The Tribune and New Times. Goal-Setting Workshop Notebooks To help organize all the background information that Council members will receive as part of this goal-setting process, notebooks will be distributed by January 4, 2005 with the following twelve sections: Agendas 1. Agendas for the January 12 community forum and January 29 goal-setting workshop. Goal Recommendations 2. Suggested goals received from Council advisory bodies. 3. Suggested goals from the "Community Budget Bulletin' survey as of January 4 (additional submissions received after this date will be distributed to the Council in a three-hole punch format for inclusion in the notebook, along with an updated summary).. 4. Suggested goals received by January 4 from community groups and interested individuals (additional submissions received after this date will be distributed to the Council in a three- hole punch format for inclusion in the notebook). 5. Summary of results from the January 12 Community Forum (to be distributed by January 18). 6. Consolidated Council member goals (to be distributed by January 25). Background Materials 7. Status reports from the November 18 budget workshop: 2003-05 Goals and Objectives; Current CIP Projects; General Plan Programs; and Long-Term CIP. 8. Goal-setting process for 2005-07. 9. Results from the August 2003 citizen survey. 10. Five-Year Fiscal Forecast (presented to the Council on December 14, 2004). 11. Other background information such as the 2005-07 Financial Plan schedule, Budget-in-Brief, Financial Plan policies and public notifications. 12. Notes and space for other supplemental materials that the Council may receive. Council Goal Work Programs: Major City Goals After the Council finalizes goals and objectives for 2005-07, the staff will prepare detailed work programs for each of the Major City Goals. Based on past experience, it is important for the ' r. I Goal-Setting Process for 2005-07 Page 5 Council to reach consensus not only on the objective for Major City Goals, but also on the program, action plan and resources that will be needed to accomplish it as well. Unless the staff fully understands the scope and timeframe that the Council intended, we cannot identify needed resources; and without this understanding, the Preliminary Financial Plan may significantly over (or under) fund the desired work effort. In short, before the staff begins to build the Preliminary Financial Plan around Major City Goals, it is essential that we have a clear understanding of what the Council hopes to achieve with each Major City Goal over the next two years. Accordingly, the purpose of each work programs is to: 1. Define and scope the adopted goal. 2. Ensure that there is a clear understanding of the goal so appropriate resources are allocated, and progress can be measured in achieving it. This is especially important in the case of objectives where fully achieving the goal is likely to extend well beyond the two-year Financial Plan period. However, we can measure progress— and our success in accomplishing the goal—by clearly defining the specific actions we plan to undertake over the next two years. We plan to present the work programs for Major City Goals to the Council on April 12, 2005. As discussed above, programs and projects related to goals in the other two priority categories will be reflected (and highlighted) in the Preliminary Financial Plan. Goal-Setting Calendar The following summarizes key dates leading to the January 29 goal-setting workshop: Council Goal-SeUing Calendar When whit Friday,January 3 Finance receives suggested goals from advisory bodies,community groups and interested individuals. Tuesday,January 4 Council receives goal-setting notebooks. Wednesday,January 12 Council holds community forum. Tuesday,January 18 Council receives written results from community forum. Friday,January 21 Council members submit goals to Finance. Tuesday, January 25 Finance distributes consolidated goals organized by similar themes. Saturday,January 29 Council holds goal-setting workshop. Next Steps The Financial Plan calendar approved by the Council on August 17, 2004 is provided in Exhibit F. After the goal-setting workshop, key dates in the budget process include: I Y Goal-Setting Process for 2005-07 Page 6 Remainin Key Dates.A er Janua 29 Goal-Setting Workshop When What Tuesday,February 1 Follow-up to Council Goal-Setting, If Needed. Continued Regular Meeting consideration of goal-setting at the next regularly scheduled Council meeting following the February 1 workshop if needed. Monday, February 15 Mid-Year Budget Review. Consider the City's fiscal status at the mid- Regular Meeting point of the fiscal year and make appropriation adjustments as necessary. Tuesday, April 12 Major City Goal Work Programs. Review and approve detail work Special Budget Workshop programs to accomplish major City goals;provide other budget direction as needed. Thursday, May 19 Preliminary Financial Plan. Receive 2005-07 Preliminary Financial Plan and Appendices A & B: Significant Operating Program Changes and Capital Improvement Plan (CIP) Projects. Thursday, May 26 Budget Workshop. Review the Financial Plan and consider General Special Budget Workshop Fund operating programs. Tuesday, May 31 Budget Workshop. Consider General Fund CIP projects. Special Budget Workshop Thursday,June 2 Budget Workshop. Consider Enterprise Fund operating programs, CIP Special Budget Workshop projects,revenue requirements and rates. Tuesday, June 7 Budget Workshop. Continue to discuss and receive public comment on Regular Meering the Preliminary Financial Plan. Tuesday,June 21 Public Hearing. Continue to discuss and receive public comment on Regular Meeting the Preliminary Financial Plan; adopt the budget. SUMMARY Council goal-setting is an important "first step" in the City's Financial Plan process.. In fact, it is important to stress just this fact—it is the beginning of the budget process, not the end. Setting goals—and subsequently approving work programs for major City goals—is not adoption of the budget. As reflected in the budget schedule above, this will not occur until June 2005, following issuance of the Preliminary Financial Plan and extensive budget workshops and hearings. EXHIBITS A. Outline for Community Workshop (January 12) B. Outline for Council Goal-Setting Workshop (January 29) C. Guidelines for Council Members During the Goal-Setting Process D. Form for Council Members to Submit Candidate Goals E. Criteria for Major City Goals F. Financial Plan Schedule Summary G:Finance/Budget Foldersr2005-07 Financial Plan/Council Goal-Setting/Council Agenda Reports/Goal-Setting Process rr A ��1 1 f- i Goal-Setting Process for 2005=07 Page 7 Community Forum 6:30 PM to 9;30 PM, Wednesday, January 12, 2005 Ludwick Community Center 6:30 Welcome Mayor 6:35 Process, Current Goals and Fiscal Outlook CAO 7:00 Public Comment—Members of public who desire to speak complete public comment card indicating topic. Mayor calls upon a speaker and identifies topic. Department Head in the budget area for the topic steps up to write the idea on a flip chart sheet and then posts it in the budget discussion area. 8:10 Group Discussions by Budget Topics– 1) Department Heads and staff facilitate a discussion of proposed goals in their respective areas, 2) City staff discusses links with current programs, and 3) participants explore alternatives and potential funding possibilities. 8:40 Brief Report from Each Group (with individual comments where desired for clarification) 9:10 Participants Vote on Top Priorities with Dots 9:20 Participants Complete Summary Feedback Form(which includes potential revenue enhancements and expense reductions) 9:30 Participation Prizes and Close Preparation • Prepare handouts on budget process and fiscal forecast to expedite review. • Provide poster boards for each of the major budget categories with current and continuing program activities and budget allocations.. • Set up the room with a gathering area for each of the budget categories. • Assign staff members to facilitate group discussions. • Provide 5 adhesive dots per attendee • Prepare summary feedback form for attendees to note suggested priorities and recommendations. • Give participants coupons for final prize drawings (City t-shirts, mugs, etc.) to reward those who stay to discuss issues with their neighbors. Outline of Summary Feedback Form • Identify desired level of attention (less, same, or more) for budget categories • Indicate which revenue increases, if any, deserve further consideration • Identify potential areas to consider expense reductions, if needed, to balance the budget. L- � Goal-Setting Process for 2005-07 Page 8 Council Goal-Setting Workshop 8:30 AM to 4.30 PM Saturday, January 29, 2005 City-County Library Community Room 8:30-9:00 a.m. Refreshments 9:00- 9:05 a.m. Welcome and Introductions Mayor 9:05 -9:10 a.m. Purpose, Process & Guidelines Facilitator 9:10—Noon Review Goals by Category Council Discuss Relationship of Goals to Current Activities Formulate and Select Candidate Goals Discuss Revenue Enhancement or Service.Reduction Possibilities [staff writes candidate goals on flip charts] Noon— 12:15 p.m. [Council may accept further comments from the public that have not been previously presented] 12:15 — 1:15 Lunch Break [staff compiles candidate goals] 1:15 - 2:15 p.m. Discuss and Weight the Goals Council Clarify Goal Statements Each Member Prepares a Written Ballot Ranking the Goals 2:15 - 3:15 p.m. Tabulate Results Staff 3:50-4:00 p.m. Review and Identify Major City Goals Council 4:00-4:30 p.m. Discuss Next Steps Council/Staff Preparation • Staff compiles and distributes composite list of candidate goals to Council members • Staff prepares a template for Council ballot sheet • Assign staff to record goal statements as Council formulates them Goal-Setting Process for 2005-07 Page 9 EXHIBIT C Suggested Guidelines for Council Members During the Goal-Setting Process 1. Encourage advisory boards, community groups and citizens to submit written comments about desired goals. 2. Invite citizens to participate in Community Forum and to listen and learn from their neighbors. 3. Receive comments from community and acknowledge their input without prematurely expressing your point of view. 4. Assure the community that you are willing to listen openly to all perspectives. 5. Focus your submission of suggested goals on a short list of key priorities to target City resources. 6. Avoid publicizing your submission of suggested goals. Let staff compile your submissions verbatim into a composite list of goals by category without identification of who made each suggestion. This enables you to see the whole picture. 7. Give yourself flexibility by not publicly staking positions in advance of the January 29, 2005 Council Goal-Setting Workshop. 8. Use this process as a way to learn from citizens and Council colleagues about what's important. 9. Explore areas where the Council can come together for positive action. 10. Recognize that this is an important step, but only the first step, in the planning and budgeting for the next two years. Goal-Setting Process for 2005-07 Page 10 EXHIBITDA Council Member Candidate Major City Goals Please write up to 7 candidates for Major City Goals below and submit them to Finance by January 25; 2005. Finance will then compile a verbatim, composite list by topic without identifying who submitted the particular statements. Please refrain from releasing your personal list so that each Council member has flexibility to review all of the submissions and discuss there at the Council Goal-Setting Workshop before staking a position. Electronic versions of this form will be provided to you. 0 0 0 HO � 1 Goal-Setting Process for 2005-07 Page-11 EXHIBIT D.2 Possible Measures to Achieve the Goals and Balance the Budget Potential Revenue Enhancements for Further Consideration. Please list any revenue enhancement opportunities (fee increases, tax measures, etc.) that you would like the Council to discuss at the January 29, 2005 goal-setting workshop. Potential General Fund Service Reductions for Further Consideration. In the event that expense reductions become necessary to balance the budget, in which areas would you like the staff to assess the possibilities? Please check off any that you'd like considered. Public Safety Community Development ❑ Neighborhood and Crime Prevention ❑ Planning: Development Review: ❑ Police Investigations ❑ Planning: Long-Range Planning ❑ Police Traffic Safety ❑ Building and Safety p Police Patrol ❑ Engineering: Development Review ❑ Fire Emergency Response ❑ Engineering: Capital Projects ❑ Fire Hazard Prevention ❑ Natural Resource Protection 0 Disaster Preparedness ❑ Community Promotion Transportation ❑ Economic Development Transportation Planning General Government ❑ Pavement Maintenance ❑ General Administration ❑ Sidewalks ❑ .Human Resources/Risk Management ❑ Traffic Signals and Signs ❑ Financial Management ❑ Street Lights ❑ Information Technology ❑ Creek and Flood Protection ❑ Building Maintenance Leisure, Cultural & Social Services ❑ Fleet Management ❑ Recreation Programs Other Services ❑ Park Maintenance ❑ ❑ Swim Center ❑ ❑ Trees ❑ ❑ Cultural Services ❑ ❑ Social Services ❑ i Goal=Setting Process for 2005-07 Page 12 Criteria for Major City Goals 1. Be legitimate to our genuine beliefs (real, supported)., 2. Agreed upon by a Council majority. 3. Focused in number for comprehension, communication and focus. 4. Set forth in one document—the Financial Plan. 5. Be clear and understandable. 6. Established as a high priority and a real commitment. 7. Reflect major goals that cannot be achieved without Council support. 8. Translated into the objectives of employees at all levels of the organization. 9. Created within a supportive atmosphere where participants are not afraid to state their suggestions for improving goals or objectives. 10. Reflect genuine consensus: while unanimous agreement is not required, they should be accepted to the point where resistance to them is reduced or eliminated. t - cam Goal-Setting Process for 2005-07 V Page 13 2005-07 Financial Plan Schedule Summary When What - - - - - - -- August 17, 2004 s Council approves Financial Plan process and schedule. November 18,2004 a Special Budget Workshop. Council holds study session on the status of General Plan programs; long-term capital improvement plan (CIP); status of Major City Goals, other objectives and CIP projects;general fiscal outlook for 2005-07; and"pantry item" follow-up. December 14, 2004 ■ Special Budget Workshop Council considers Financial Plan organization and policies; reviews annual financial report for 2003-04; considers results of five-year fiscal forecast; and finalizes goal-setting process.. January 12, 2005 6 Special Budget Workshop. Council holds community forum. January 29, 2005 a Special Budget Workshop. Council holds goal-setting workshop:. discusses candidate goals presented at January 12 workshop; discusses Council member goals distributed on January 25; prioritizes and sets major City goals. February 1,2005 ® If needed,Council finalizes goals and priorities. February 15, 2005 ■ Council considers mid-year budget review. March to May 2005 IN Departments submit budget requests. ■ Budget review team analyzes requests and meets with departments. ■ CAO finalizes budget recommendations. April 12, 2005 ■ Special Budget Workshop. Council approves major City goal work programs and sets strategic.budget direction in preparing the 2005-07 Financial Plan. May 19,2005 ■ CAO issues preliminary budget. May 26, 31 and ■ Special Budget Workshops. Council holds evening budget workshops: June 2, 2005 . May 26: Financial Plan overview and General Fund operating programs. 0 May 31: General Fund CIP projects. • June 2:Enterprise Fund programs, CIP projects and rates. May 25,2005 ® Planning Commission reviews CIP for General Plan consistency. June land 21,.2005 ■ Council holds continued hearings; adopts budget. Council Meeting Dates in Bold r p council MCMORAnbum DATE: December 10, 2004 RECEIVED DEC 10 200 TO: City Council SLO CITY CLERK VIAc Ken Hampian, CA FROM: John Mandeville, Community Development Director_ DFvI jq BY: Michael Draze, Deputy Director of Community Developmenr',_- SUBJECT: Planning Commission Action on Housing Element Amendment At the Planning Commission's December 8, 2004 special meeting, the Commission voted 5-0 (Commissioners Aiken and Osborne absent) to recommend City Council approval of amendments to Appendix C of the Housing Element. There was no public comment at the meeting. Commissioners received a brief presentation on the City's planned application for State Workforce Housing Reward Program Grant and other possible grant opportunities once the City's Housing Element was state-certified. Commissioners thanked staff for its work on housing element certification and housing grants. Council will consider the Planning Commission's recommendation at its Tuesday,December 14th special meeting. A copy of the amended Housing Element, including the revised appendices and new graphics in Chapters 14, is available in the Council's Reading File. The draft Planning Commission minutes are attached. p-COUNCIL _TCDD DIR AO _ZFIN DIR RED FILE CACAO _FIRE CHIEF M ING AGENDA LERK'O I Z'pO DIR CL�RK'ORIG .LTPOUCE CHF DAT 1 16�1TEM #2_ ❑ D T EADS REC DIR _ UTR DI IR (]�1R DIR CC Mem 12-10.04.doc Draft SAN LUIS OBISPO PLANNING COMMISSION MINUTES DECEMBER 8, 2004 CALL TO ORDERIPLEDGE OF ALLEGIANCE: The San Luis Obispo Planning Commission was called to order at 7:00 p.m. on Wednesday, December 8, 2004, in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo. ROLL CALL: Present: Commrs. Andrea Miller, Michael Boswell, Alice Loh, Carlyn Christianson, and Chairperson James Caruso Absent: Commrs. Orval Osborne and Jim Aiken Staff: Housing Programs Manager Doug Davidson, Deputy Community Development Director Michael Draze, Senior Planner Jeff Hook, Deputy Public Works Director Tim Bochum, and Recording Secretary Irene Pierce ACCEPTANCE OF THE AGENDA The agenda was accepted as presented. PUBLIC COMMENTS ON NON-AGENDA ITEMS There were no comments made from the public. PUBLIC HEARING ITEMS: 1. Citywide. GPA 33-02; Amend background information in Appendix C of the General Plan Housing Element to address State Housing and Community Development Department comments; City of San Luis Obispo, applicant. Senior Planner Jeff Hook presented the staff report recommending the Commission recommend to the City Council, approval of the draft amendments to General Plan Housing Element, Appendix C: Housing Constraints and Resources. Housing Programs Manager Doug Davidson gave an overview of the Housing Element draft. PUBLIC COMMENTS: There were no comments made from the public. COMMISSION COMMENTS: Draft Planning Commission, .,,finutes December 8, 2004 Page 2 Vice-Chair Boswell moved the staff recommendation. Seconded by Commr. Loh. AYES: Commrs. Loh, Boswell, Miller, Christianson, and Chairperson Caruso NOES: None ABSENT: Commrs. Osborne and Aiken ABSTAIN: None The motion carried on 5 : 0 vote. BUSINESS ITEM: 2. 1049 Orcutt Road. GPC 42-04; General Plan conformity determination for property acquisition for future infrastructure improvements; R=3-S zone; City of San Luis Obispo, applicant. Deputy Public Works Director Tim Bochum presented the staff report requesting the Planning Commission determine and report to the City Council that the proposed property acquisition is in conformance with the General Plan. PUBLIC COMMENTS: There were no comments made from the public. COMMISSION COMMENTS: Commr. Loh moved to recommend that the City Council find that the proposed property acguisition.is.in conformance with the.General Plan. Seconded by Vice-Chair Boswell. AYES: Commrs. Loh, Boswell, Miller, Christianson, and Chairperson Caruso NOES: None. ABSENT: Commrs. Osborne and Aiken ABSTAIN: None. The motion carried on a 5 : 0 vote. COMMENT AND DISCUSSION: 3. Staff: A. Agenda Forecast: Deputy Director Michael Draze gave an agenda forecast of upcoming items. 4. Commission: ADJOURMENT: Draft Planning Commission,-,minutes December 8, 2004 Page 3 With no further business before the Commission, the meeting adjourned at 7:40 p.m. to the next regular meeting scheduled for January 12, 2005, at 7:00 p.m. in Council Chamber. Respectfully submitted by Irene Pierce Recording Secretary _1 C RECEIVED JOHN DUNN DEC C 9 200 PO BOX 2479 AVILA BEACH CA 93424 RED FILE Email: johnodunn@aol.com Telephone: 805.595.2804 SLO CITY CLERK M G AGENDA DAITEM #_k&Cf UZ60cpDecember 6, 2004 I _21 COUNCIL CDD DIR Mayor Dave Romero and City Council Members cAo FIN DIR City Hall 2�ACA0" 7FIRECHIEF 990 Palm Street -�A70RNE! raw DIR 0 CLERK/0R13 OLICE CHF San Luis Obispo, CA 93401 ZREC DIR Z.UTIL.DIR �HR DIR Dear Mayor Romero and City Council Members: I want to be among the first to extend holiday greetings to all of you and to give some preliminary thoughts on your 2005-07 City Council Goal Setting. I do so with humility for I understand the value of a former CAO's opinions to the City Council (but I'm doing it anyway.) I understand that the City continues to live under severe financial pressures and that it is difficult to do great things for the community under such conditions. However, it is during the tough times when it is most important to keep the dream alive for what you hope to accomplish for your community in the longer term. It was during those tough times of 1993, that we had to make the gut-wrenching decision to lay off City employees, when we made the decision to continue on with the Performing Arts Center project. Had it not been for that decision this City would have no Performing Arts Center in which to celebrate our sense of community Protection of the city's excellent services and the quality employees who provide those services should also be a priority of the City. My specific suggestions for your consideration are: 1) Strengthen and extend the downtown Experience has shown the most immediate and pragmatic way to do this is to plan for the next parking garage. Whether it is to be the Palm/Nipomo or the Wells Fargo, or the north of Santa Rosa location is your decision. I hope that decision is based on the concept of leveraging economic gain as well as an assessment of parking needs. Other ways to increase the strength and attractiveness of the downtown are: A. Work with property owners/developers to create a major high-quality conference facility in or on the edge of the downtown. B. Install bulb-outs, widen sidewalks, increase outdoor restaurant seating, to offer European-style ambiance which has appeal and increases vitality. C. Build on the old tum-of-the-century charm to increase it's subliminal appeal and charm (cleanliness, lighting, furnishings, decor, etc) D. Strengthen the"cultural center" concept on Monterey/Broad Streets, and implement specific elements of the plan E. Support downtown public art 2) Improve the attractiveness and function of the major entrances into the downtown A. Continue work and implement the South Broad Street Corridor Plan. It's pretty homely (since the "g"word has been eliminated) out there right now; yet the area has great potential to be more attractive and to better serve the community. B. Continue to improve Santa Barbara Street by widening the unfinished,portion and by encouraging quality design/development in the area. C. Widen lower Higuera Street and implement the mid-Higuera Plan. This area is not only a major entrance way into the downtown and a major exit from the downtown, it is the interconnection between the two major commercial areas of the City and it currently looks gr. . . er, homely. The improvement of this area is a necessity if the City is to allow further growth in the Madonna area and at the same time entice those shoppers into the downtown as the City's economic report assumes. 3) Return to a more vigilant open space preservation program. For this program to work at it's best, maximizing OPM (other people's money), it requires using City money for leveraging. This programs potential for the long-term improvement of the City's surroundings is too important to let this past City initiative wither on the vine. Enticing pedestrian paths, bicycle paths, nature appreciation programs, etc., are all part of this equation While dozens of other things could be added to the above list, my overall suggested approach, hopefully balanced, could be summed up as"jobs, housing, and land" (as in higher paying, affordable and preservation of). The overall thrust of the above three suggestions is to enhance the quality, attractiveness and the economic vitality of the City. A place that is attractive and fulfilling to the residents of the City is also an enticing attractive place for our guests. Thank you for taking the time to read this and have a wonderful holiday season. And, congratulations to Christine, Paul, Dave, and John and "hello"to Allen. Best, John CC: Ken Hampian