SR-022608-7B'fir
~;tYOf City. Council Report
Santa Monica
City Council Meeting: February 26, 2008
Agenda Item: ~ '-
To: Mayor and City Council
From: Marsha Jones Moutrie, City Attorney
Subject: Clarification of the Construction Rate Program
Recommended Action
Legal staff recommends that the Council adopt an emergency interim ordinance
clarifying the construction rate program so that it clearly either prohibits any new
construction project within a five hundred foot radius of another construction project or
allows only one such project within that radius of another project..
Executive Summary
On March 7, 2000, the Council adopted an interim construction rate ordinance
applicable to multi-family neighborhoods. That ordinance allowed only one construction
project at a time for each block and also prohibited any new construction project within
500 foot radius of an ongoing project, with certain specified exemptions. On May 17,
2000, a lawsuit was filed challenging that ordinance.. The case settled contingent upon
the adoption of a less restrictive ordinance. The Council amended the ordinance.. As
amended, Municipal Code Section 9.04.10.02.450(a) allows one project within a 500
foot radius of another. However, subsections (c) and (d) of the same section indicate
that no new project may be authorized within 500 feet of another. This ambiguity has
existed since the lawsuit settlement Staff has received complaints in the last month
from members of the public regarding the application of this ordinance. Legal staff
recommends that Council act to eliminate the ambiguity and clarify whether one project
or no project is allowed within a 500 foot radius of another.
Background
The City of Santa Monica is geographically small, very dense, and has been fully built
out for over 50 years. Each year, it is a destination for hundreds of thousands of
workers and even more. visitors. And, in recent years, the City has experienced a
construction boom. In response to these realities, the City Council has acted repeatedly
to preserve neighborhood tranquility, protect circulation, and also afford adequate
opportunities for housing production. Among the Council's actions was adoption of a
construction rate program for residential neighborhoods.
The rate program adopted in 2000 by interim ordinance imposed strong neighborhood
protections. It allowed only one construction project per block and provided that this
construction project must not be within a five hundred foot radius of another
construction project. The restriction lasted for 18 months after issuance of the "first
project's" building permit unless the owner of the previously permitted project formally
relinquished the building permit for that project. Certain projects. were exempted from
the program.
The Santa Monica Housing Council filed suit. Its complaint asserted both constitutional
and CEQA challenges based upon the duality and duration of the prohibitions. In
addition, the Housing Council claimed that the rate ordinance violated state housing
element law: Council assessed the suit and opted to resolve the claims by way of a
settlement contingent upon adoption of a less restriction ordinance which would, in part,
eliminate the requirement that only one construction project be allowed per block, but
continue the radius restriction.
Council adopted a less restrictive interim ordinance which eliminated the block limitation
and amended the radius restriction to provide that only one construction project shall be
allowed within a five hundred foot radius of another construction project .Other
provisions were modified consistent with the settlement agreement including reducing
the eighteen month restriction on issuance of new building permits to fifteen months.
Ultimately, a permanent ordinance was adopted mirroring this modified interim
ordinance.
Discussion
The basic prohibition of the rate ordinance allows one project, but only one, within a 500
foot radius of an existing permitted project. See SMMC section 9.04.10.02.450(a). This
restriction is mirrored in the staff report accompanying the permanent ordinance. It
states, "the current construction rate program allows only one construction project, or
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substantial remodel project, within afive-hundred foot radius of another project subject
to this program." However, other subsections state that a permit may not be issued for
a project within 500 feet of an existing project and require that the project be placed on
awaiting list if another building permit has been issued. Thus, there is an ambiguity as
to whether only one or two projects (but not three) may exist within a 500 foot radius.
In recent weeks, staff has received questions about whether two particular projects
conformed to the construction rate program.. Staff investigated. In one case, the
project which drew the complaint lacked the requisite permits and was halted. In the
other case, the project was exempt from the rate program. Thus, the complaints were
resolved. Fortunately, they triggered a review of the ordinance's ambiguity addressed
in this report.
Council can resolve the. ambiguity by adopting an ordinance which makes clear either
that only a single project is allowed within a 500 foot radius or that only one project is
allowed within a 500 foot radius of another permitted project. The attached ordinance
would effectuate the latter alternative, consistent with current subsection (a). However,
the proposed ordinance could readily be modified at the Council meeting to effectuate
the first alternative. In either circumstance, staff recommends that subsection (b) of the
current law should be modified to clarify that a building permit shall not be issued until
the requirements of subsections (c) and (d) have been satisfied. This change would
reflect current practice.
Environmental Analysis
The proposed ordinance is exempt from CEQA pursuant to CEQA Guidelines Section
15061(b)(3). Section 15061(b)(3) provides that CEQA only applies to those projects
that have the potential for causing a significant effect on the environment. This
proposed ordinance, which clarifies the existing rating program, is environmentally
beneficial as it will ensure neighborhoods are protected from construction related
impacts by limiting the number of projects in close proximity to each other through
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regulating the timing and distribution of construcfion projects through the building permit
process.
Financial Impacts & Budget Actions
Approval of either the attached ordinance or the alternative would not have financial
impacts.
Prepared by:
Marsha Jones Moutrie, City Attorney
Approved:
Marsl a Jones o trie
City orney
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Forwarded to Council:
Reference
Ordinance No. 2250
(CCs).