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SR-400-001-03 (18) 5-A CA:RMM: 11415/hpc qPtJ- (?tJ/--O 3 JUN 1 .. 198&. City Council Meeting 6-14-88 Santa Monica, California STAFF REPORT TO: Mayor and City Council city Attorney Ordinance Adding Chapter 4A to Article IX of the Santa Monica Municipal Code Implementing Program 12 of the Housing Element FROM: SUBJECT: At its meeting on March 10, 1987, the city council approved a number of revisions to Program 12 of the Housing Element. The City Attorney's office was directed to prepare an ordinance implementing the adopted revisions. In response to this direction, the accompanying ordinance was presented for City Council consideration at its May lO, 1988, meeting. At the May 10, 1988, meeting, the City Council continued the public hearing until its June 14, 1988, meeting. During the intervening time, the city Attorney's office has had an opportunity to review the comments and suggestions submitted in three letters, one dated May 5, 1988, and the other two dated May 10, 1988, by the law offices of Lawrence & Harding. Most of the comments are non-substantive in nature and in many cases have been inserted into the ordinance. The major components of program l2 as adopted by the City council are as follows: 1. It applies to projects containing five or more housing units. - 1 - 5-A JUN 1 4 13B~ . . Market Rate Unit. A dwelling unit as to which the rental rate is not restricted by this Chapter. Maximum Allowable Rent. A monthly housing charge which does not exceed 30% of the median income established by HUD, adjusted for income level, household size, and unit size. This charge shall represent full consideration for housing services and amenities as provided to market rate units in the proj ect, whether or not occupants of market rate units pay separate charges for such services and amenities. Housing services and common area amenities include but are not limited to the fOllowing: parking, use of common facilities including pools or health spas, and utilities if the project is master-metered. "Middle" and "Low" Income Levels. Determined periodically by the City based on the United states Department of Housing and Urban Development (HUD) estimate of median income in the Los Angeles-Long Beach Primary Metropolitan Statistical Area. The two major income categories are: "middle income" (81% to 100% of the area median) and "low income" (80% or less of the area median) . state law also defines "moderate" income as between 81% and 120% of the area median. Further adjustment shall be made by household size as established by the City. The Planning Department shall make available a list of middle and low income levels as adjusted, which list - 3 - or moderate income which receive financial assistance from any federal, state, or local housing program or which are owned by any religious or other nonprofit organization. Lastly, this Section provides that projects approved under inclusionary standards in existence prior to the effective date of this ordinance on which construction has not begun or for which deed restrictions have not been executed as of March 10, 1987, shall satisfy the inclusionary obligation by meeting the standards contained in this ordinance. Section 9423. Project Development Requirements. This section provides that no less than 15% of the total number of units to be constructed in any project containing five or more units shall be affordable housing units, with the number of units required being rounded up or down to the nearest whole number where appropriate. These units may be located on-site or off-site. An in-lieu fee may be paid to the City instead of providing affordable housing. All on-site inclusionary units are required to be distributed throughout the project area, may not be significantly different in size and design from the other units in the project, must be rental units, and must be constructed concurrently with the construction of the market rate units. Section 9424. In-Lieu Fees for Inclusionary Housing. Instead of building affordable housing on-site, developers may choose to pay an in-lieu fee to the City, 25% of which may be used by the city to develop affordable housing for moderate-income households, and 15% of which may be used for program administration costs. This Section sets forth a formula - 3 - for determining the amount of such fee, and provides that on-site inclusionary housing units shall be excluded from the floor area calculation. All fees on residential development imposed by the santa Monica Malibu Unified School District pursuant to Assembly Bill 2296 are deducted from the established fee. The fee shall be adjusted for inflation and such adjustment is tied to changes in the Consumer Price Index. This Section further sets forth the specific procedures to be followed when utilizing the in-lieu fee option including: payment in full of the fee prior to the issuance of a certificate of Occupancy for the project~ securing the fee by execution of an irrevocable letter of credi t; and depositing such fee in a Reserve Account in the General Fund. Exempted from this section are housing developments for which an agreement has been executed to provide an on-site inclusionary unit and the inclusionary unit has been occupied and any housing development in which a density bonus has been given pursuant to Government Code Section 65915. Section 9425. Fee Waivers. This section provides that the condominium and Cooperative Tax and Park and Recreation Facilities Tax shall be waived for inclusionary units. This fee shall not be waived where an in-lieu fee is paid. Section 9426. Density Bonus and other Incentives. This section provides that projects that meet applicable state law requirements may be entitled to density bonuses or other incentives. Section 9427. Pricing Requirements for Inclusionary Units. This section provides that inclusionary units shall be priced so that designated households pay no more than 30% of gross monthly - 4 - household income for rent, said rents to be determined by the City and adjusted by the number of bedrooms in each unit. The project owners will select the tenants who will occupy the inclusionary units according to eligibility criteria set forth in Section 9428. Section 9428. Eligibility Requirements. This section provides that only low and middle income households are eligible to occupy inclusionary units. This section also specifies persons who are ineligible to occupy inclusionary units, including employees of the City of Santa Monica with pOlicy-making authority or influence affecting City housing programs and the immediate relatives of such employees. Santa Monica residents shall be given first priority to inclusionary housing units, with second priority being given to persons who work in the city, and third priority to all other applicants. section 9429. Relation to units Required by Rent Control Board. This Section provides that low and middle income units developed as part of a market rate project, pursuant to replacement requirements of the Rent Control Board, shall count toward the satisfaction of this program if they otherwise meet applicable requirements for this program. Section 9430. Deed Restrictions. This Section provides that prior to issuance of a building permit for the project, the developer must submit deed restrictions for City review and approval, setting forth the obligations of the developer under this program. section 9431. Availability of Government Subsidies. This Section provides that the intent of this program is that the - 5 - requirements for inclusionary units shall not be determined by the availability of federal or state housing subsidies. Section 9432. Enforcement. This section provides that no building permits or occupancy permits will be issued for any project not meeting the requirements of this program. It further provides that no inclusionary unit shall be rented except in accordance with the terms of this Ordinance. COMMENTS SUBMITTED BY LAWRENCE & HARDING Wi th the exception of the following items, the comments submi tted by Lawrence & Harding are in the nature of typographical Changes and minor Clarifying comments which have been incorporated into the proposed ordinance. 1. Retroactivity. Lawrence & Harding contend that the proposed ordinance retroactively applies the Program 12 revisions adopted by the city Council in an unenforceable manner. In particular, they contend that the City cannot apply this ordinance retroactively to any developer who has filed an application for a vesting tentative map that has been deemed complete prior to the effective date of this ordinance. By its terms, the proposed ordinance applies to any project approved after the City Council adopted the underlying pOlicies on March 10, 1987, to the extent that the conditions placed on the map do not conflict with those policies. The proposed ordinance further provides that in connection with payment of an in-lieu fee, the amount of the fee that must be paid by a developer is the amount established by the ordinance in effect at the time of payment. - 6 - A vesting map confers "a vested right to proceed with development in substantial compliance with those ordinances, policies and standards in effect as of the date the application for a vesting tentative map is determined to be complete. " santa Monica Municipal Code Section 9325(e). In connection with applications deemed complete subsequent to March 10, 1987, the policies and standards in effect in the city included the revisions to Program l2 presented to the City Council on March 10, 1987. The city Council properly adopted such policies and standards by resolution on March 10, 1987, in accordance with Government Code Section 66474.2. Although the higher in-lieu fee could not actually be collected prior to City Council adoption of an amendment to Ordinance Number 1389 (CCS), which situation is addressed in Section 9422 (c) (3) of the proposed ordinance, the policy was in place as of March 10, 1987. Therefore, when any vesting map was filed subsequent to that date, it was filed subject to those policies adopted on March 10, 1987. Moreover, the application of Program 12 or the in-lieu fee provisions adopted pursuant to it, are not affected by the code sections cited by Lawrence & Harding. Both Government Code section 66474.2 and Municipal Code Section 9325(e) are directed at the determination by the city Council as to "whether to approve or disapprove an application for a tentati va map. tt The application of the in-lieu fee contained in the proposed ordinance merely represents the application of a standard condition which is placed on all housing projects in the city in conjunction with approval or disapproval. It has no bearing on - 7 - concurrently with the construction of market rate units. (f) Inclusionary units project site must be rental ownership projects. (g) Inclusionary units required pursuant to this Chapter may be provided at a location within the city other than the project site. Any such off-site inclusionary units shall be completed by the developer of the market rate housing project prior to the issuance of a Certificate of Occupancy for the market rate housing unit project and shall conform to the requirements of the applicable Building and Housing Codes and the minimum size provisions cited in section 9423(d). The occupancy and rents of any such off-site units shall be governed by the terms of a deed restriction similar to that used for on-site inclusionary units which shall take precedence over all other covenants, liens, and encumbrances. developed on uni ts in rental the or SECTION 9424. Housing. (a) Whenever the City requires as a condition of approval of a market-rate housing development that the development include inclusionary housing uni ts pursuant to this Chapter. the developer may pay a fee to the City in lieu of providing such In-Lieu Fees for Inclusionary - 7 - percent. Lawrence & Harding argue that the ordinance, as presently drafted, provides no incentive for a developer of mul tifamily housing to construct as many incl usionary un! ts as economically feasible if it is impractical to dedicate fifteen percent of the entire market rate project for such purposes. This revision has not been included in the proposed ordinance for the following reasons. First, this issue has never been raised before and is not a part of Program 12 as adopted by the city council on March 10, 1987. Second, the proposal is largely academic since, as a practical matter, it is highly unlikely that such a resolution will ever be desireable to a developer. In the experience of staff to date, developers have sought either to meet their entire inclusionary obligation on- or off-site or to meet their inclusionary obligation through paying an in-lieu fee. Not a single developer has ever requested the option proposed by Lawrence & Harding. Finally, staff believes that should the Council find the proposal worthy of consideration, the potential impacts should be studied prior to implementation by ordinance. 3. Section 9421. Definitions. Lawrence & Harding recommend that the phrase IIfor the occupants of a dwelling unit" be inserted after the word lIincome" in the second line of the defini tion of "income eligibility, " and that the words "the number of" might be added before the word "elderly" in that definition. staff does not believe that this suggestion adds or clarifies anything in this definition. 4. Section 9423. Project Development Requirements. Lawrence & Harding suggest that the word "ei ther" should - 9 - be deleted from the fourth line of subsection (d), that the words "of the floor area" should be added after the word "size" and that the words "the nature and caliber of the" should be added before the word "interior" in lines 4-5. Further, Lawrence & Harding suggest that the word "reasonably" be replaced with the word "generally" in line 10 of this subsection. Finally, Lawrence & Harding suggest that the words "the average unit" be replaced with the words "most of the market rate units" in lines 14-15. Again, while the other comments submi tted by Lawrence & Harding regarding this subsection have been incorporated, these suggestions have not been incorporated as they would change the meaning of the underlyinq subsection. This subsection intends that a developer may not reduce both the size and the interior amenities in an inclusionary unit. staff believes that the word "reasonably" is a more appropriate word than "generally" in this instance. staff prefers the term "average unit" to the phrase "most of the market rate units." 5. Section 9424. In-Lieu Fees for Inclusionary Housing. Lawrence & Harding suggest that the words "could otherwise require" be inserted in place of the word "requires" in the first line of subsection (a). This comment has not been incorporated as it would change the meaning of the sentence. The city does, in fact, "require" inclusionary housing units as a condition of approval of market rate housing. The payment of an in-lieu fee represents the establishment by the Ci ty of a mechanism for buying out of that requirement. - 10 - RECOMMENDATION It is respectfully recommended that the accompanying ordinance be introduced for first reading. PREPARED BY: Robert M. Myers, City Attorney Laurie Lieberman, Deputy City Attorney - 11 - CA:RMM:lld137/hpc City Council Meeting 6-l4-88 Santa Monica, California ORDINANCE NUMBER (City council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ADDING CHAPTER 4A TO ARTICLE IX OF THE SANTA MONICA MUNICIPAL CODE IMPLEMENTING PROGRAM 12 OF THE HOUSING ELEMENT THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS: SECTION 1. Chapter 4A is added to Article IX of the Santa Monica Municipal Code to read as follows: CHAPTER 4A. INCLUSIONARY HOUSING PROGRAM. SECTION 9420. Findings and Purpose. The City Council finds and declares: (a) The City of Santa Monica has a responsibility to address the needs of its residents and residents in the region from all social and economic groups for decent, affordable housing, while at the same time maintaining an economically sound and healthy environment. (b) The Housing Element of the General Plan of the City of Santa Monica adopted on January 25, 1983, provided for an inclusionary housing program to address the need for decent and affordable housing in Program 12. - 1 - . . any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 4. The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. The ordinance shall be effective 30 days from its adoption. APPROVED AS TO FORM: (".,rt~ ..----. ~ ROBERT M. MYERS 0 . City Attorney - 14 - SECTION 9431. Availability of Government Subsidies. It is the intent of this program that the requirements for inclusionary units shall not be determined by the availability of federal or state housing subsidies. This does not, however preclude the use of such programs or subsidies. SECTION 9432. Enforcement. No building permit or occupancy permit shall be issued, nor any development approval granted, which does not meet the requirements of this Chapter. No unit subject to the inclusionary requirements of this Chapter shall be rented except in accordance with this Chapter. SECTION 2. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to affect the provisions of this ordinance. SECTION 3. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the ordinance. The City council hereby declares that it would have passed this ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether - 13 - -- two maj or income categories are: "middle income" (81% to lOOt of the area median) and "low income" (80% or less of the area median). state law also defines "moderate" income as between 81% and 120% of the area median. Further adjustment shall be made by household size as established by the city. The Planning Department shall make available a list of middle and low income levels as adjusted, which list shall be updated periodically by the city and filed with the City Clerk. Off-Site Construction. Erection of low or middle income housing units on land other than that on which the developer intends to place a proj ect within the city of Santa Monica. proj ect. A residential development or subdivision proposal for which City permits approvals are sought. land and SECTION 9422. Applicability. (a) An inclusionary requirement shall apply to all mUlti-family residential market rate dwelling units resulting from new construction or condominium or cooperative conversion of projects of five units or more. (b) The construction of any multiple rental or limited equity cooperative housing which has a recorded deed restriction requiring occupancy of all units in the project by and rent levels of all units - 4 - affordable to low and moderate income persons or households for a period of not less than 15 years, and which is either financed by federal, state, or local housing assistance, or owned by religious or other non-profit organization shall be exempt from the requirements of this Chapter. (c) (1) This Chapter shall apply to any project for which an application was approved after March 10, 1987, except to the extent that the provisions of this Chapter conflict with the conditions of approval of any such map. (2) A proj ect approved prior to March 10, 1987, shall be subject to the provisions of Program 12 as they existed on the date of approval of the application for the project, unless the applicant voluntarily requests that the provisions of this Chapter apply to the project. In the event of such a request, the provisions of this Chapter shall apply to such project unless the request is barred by the provisions of Section 9424(h) of this Chapter. (3) Whenever any person requests that in order to satisfy the requirements of Program 12 of the Housing Element that an in-lieu fee be paid pursuant to the provisions of this Chapter or any other law, the amount of the in-lieu fee shall be the amount then in effect at the time of payment, - 5 - regardless of the date of approval of the application for the project. SECTION 9423. project Development Requirements. (a) This Chapter requires that fifteen percent (15%) of the total nnmber of units to be constructed in any project developed by an applicant at one location, designed for permanent occupancy and containing five (5) or more units, shall be affordable by households of low- or middle-income. The requirements of this Section may alternatively be satisfied at the developer's discretion by off-site development of required units as described in Section 9423(g), or an in-lieu fee payment pursuant to the provisions of Section 9424. (b) In determining the number of inclusionary units required, any decimal fraction less than 0.5 shall be rounded down to the nearest whole number, and any decimal fraction of 0.5 or more shall be rounded up to the nearest whole number. (c) At the time of filing an application with the City's Planning Department for permission to develop mUlti-family market rate dwelling units, the developer shall specify the number, type, location, size, and construction schedule of all dwelling units proposed to be developed and shall indicate which of the dwelling units, if any, are intended to - 6 - satisfy the inclusionary housing requirements of this Chapter. (d) If located on the project site, inclusionary units shall, whenever reasonably possible, be evenly distributed throughout the project. The applicant may reduce either the size or interior amenities of the inclusionary units as long as there are not significant identifiable differences between inclusionary and market rate units visible from the exterior of the units and the size and design of the units are reasonably consistent with the market rate units in the project, provided that all units conform to the requirements of the applicable Building and Housing Codes. Inclusionary units provided shall have at least the same number of bedrooms as the average uni t in the proj ect and if the floor area of the inclusionary units is not the same as the floor area of the market rate units at the project, each of the inclusionary units shall satisfy the following minimum total floor area, depending upon the number of bedrooms provided: o Bedroom 1 Bedroom 2 Bedrooms 3 Bedrooms 4 Bedrooms 500 Square Feet 600 Square Feet 850 Square Feet 1080 Square Feet 1200 Square Feet - 7 - (e) All inclusionary units in a project or a phase of a project shall be constructed concurrently wi th the construction of market rate units in the project or phase of that project. (f) Inclusionary units developed on the project site must be rental units in rental or ownership projects. (9) Inclusionary units required pursuant to this Chapter may be provided at a location within the City other than the project site at the developer's discretion. Any such off-site inclusionary units shall be completed by the developer of the market rate housing project prior to the issuance of a certificate of Occupancy for the market rate housing unit project and shall conform to the requirements of the applicable Building and Housing Codes and the minimum size provisions cited in Section 9423(d). The occupancy and rents of any such off-site units shall be governed by the terms of a deed restriction similar to that used for on-site inclusionary units which shall take precedence over all other covenants, liens, and encumbrances of the property on Which the off-site construction is performed. - 8 - SECTION 9424. In-Lieu Fees for Inclusionary Housing. (a) Whenever the City requires as a condition of approval of a market-rate housing development that the development include inclusionary housing units pursuant to this Chapter, the developer may elect to pay a fee to the city in lieu of providing such on-site or off-site inclusionary units in accordance with the provisions of this section. (b) The amount of the fee pursuant to this Section shall be determined as follows: $5.73 per gross square foot of floor area of the project for the first 10,000 square feet of development and $6.77 for each gross square foot of floor area in excess of 10,000 square feet. (c) The amount of the fee set forth in subsection (b) above shall be reduced by the amount of the fee imposed on residential development by the Santa Monica-Malibu Unified School District as permitted by California Government Code Section 65995. (d) Any fee required pursuant to this section shall be adj usted for inflation by the percentage change in the Consumer Price Index ("CPIIt) between the date of adoption of this Chapter through the month in which payment is made. For purposes of this Section, CPI shall mean the index for Urban - 9 - Wage Earners and Clerical Workers for All Items for the Los Angeles/Long Beach/Anaheim statistical area, as published by the united states Department of Labor, Bureau of Labor statistics. (e) Any fee required pursuant to this section shall be paid in full before a certificate of Occupancy is issued for any uni t in the housing project. (f) Any fee required by this section shall be secured by execution of an irrevocable letter of credit in favor of the city or other security acceptable to the City for the total amount of the obligation. The letter of credit or other acceptable security shall be delivered to the City prior to the issuance of a building permit for the housing development. The letter of credit or other security shall be released and returned to the developer immediately upon payment of the in-lieu fee. (g) Any payment made pursuant to this Section shall be deposited in a Reserve Account separate from the General Fund to be used only for development of low and moderate income housing. Up to twenty-five percent (25%:) of in-lieu fee funds may be used to develop affordable housing for moderate-income households, and up to fifteen percent (15%) of in-lieu fee funds may be used for program administration costs. - 10 - (h) This section shall not apply to any housing development for which an agreement has been executed between the City and developer to provide for an on-site inclusionary unit and the inclusionary unit has been occupied. (i) This Section shall not apply to any housing development in which a density bonus has been given pursuant to Government Code section 65915. SECTION 9425. Fee Waivers. The Condominium and cooperative Tax descriped in section 6651 of the Santa Monica Municipal Code and the Park and Recreation Facilities Tax established in Chapter 6C of Article VI of the Santa Monica Municipal Code shall be waived for required inclusionary and for low and moderate income units developed by the city or its designee using in-lieu fee funds. However, any developer who elects to pay an in-lieu fee shall not be eligible for any fee waiver under this Section. SECTION 9426. Density Bonus and Other Incentives. Projects which meet applicable requirements of state law as a result of inclusionary units are entitled to density bonuses or other incentives in accordance with the provisions of such law. - 11 - SECTION 9427. pricing Requirements for Inc1usionary units. The City shall, on an annual basis, set maximum allowable rents for inclusionary units, adj usted by the number of bedrooms. Such maximum allowable rents shall be set at rates such that qualified occupants pay no more than thirty percent (30%) of the maximum gross monthly household income eligible for such a unit. The owner of each inclusionary unit shall retain discretion in the selection of eligible renters for that unit, provided that such renters meet the requirements of section 9428. SECTION 9428. Eligibility Requirements. (a) Only low- and middle-income households shall be eligible to occupy inclusionary units. The city may establish administrative guidelines for determining household income, minimum and maximum occupancy standards and other compatible eligibility criteria. (b) The following individuals, by virtue of their position or relationship, are ineligible to occupy an affordable unit: (1) All employees and officials of the City of santa Monica or its agencies, authorities, or commissions who have, by the authority of their position, policy-making authority or influence affecting City housing programs. - 12 - (2) The immediate relatives, employees, or other persons gaining significant economic benefit from a direct business association with public employees or officials. (3) The immediate relatives applicant or owner, including spouse, parents, grandparents, brother, father-in-law, mother-in-law, daughter-in-law, aunt, uncle, sister-in-law, and brother-in-law. (c) In setting priorities among eligible households, first priority shall be given to Santa Monica residents, second priority to persons employed in Santa Monica, and third priority to other persons. of the children, sister, son-in-law, niece, nephew, SECTION 9429. Relation 'to units Required by Rent Control Board. Low- and middle-income units developed as part of a market rate project, pursuant to replacement requirements of the Santa Monica Rent Control Board, shall count towards the satisfaction of this Chapter if they otherwise meet applicable requirements for this Chapter including, but not limited to, the income eligibility requirements of the Chapter, deed restriction requirements, and pricing requirements. New inclusionary units required by the Rent Control Board which meet the - 13 - standards of this Chapter shall count towards the satisfaction of this Chapter. SECTION 9430. Deed Restrictions. Prior to issuance of a building permit for a project subject to the requirements set forth in this Chapter, the applicant shall submit deed restrictions or other legal instruments setting forth the obligations of the applicant under this Chapter for city review and approval. Such restrictions shall be effective for the lifetime of the project. SECTION 9431. Availability of Government Subsidies. It is the intent of this Chapter that the requirements for inclusionary units shall not depend upon the availabili ty of federal or state housing subsidies. This Section does not, however preclude the use of such programs or subsidies. SECTION 9432. Enforcement. No building permit or occupancy permit shall be issued, nor any development approval granted, for a project which is not exempt and does not meet the requirements of this Chapter. All inclusionary units shall be rented in accordance with this Chapter. SECTION 2. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this ordinance, to the extent of such inconsistencies and no - 14 - further, is hereby repealed or modified to that extent necessary to affect the provisions of this ordinance. SECTION 3. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the ordinance. The city Council hereby declares that it would have passed this ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 4. The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. effective 30 days from its adoption. The ordinance shall be APPROVED AS TO FORM: (trV~~.~ ROBERT M. MYERS U City Attorney - 15 -