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SR-11-26-2013-3CCity Council Meeting: November 26, 2013 Agenda Item: 3 -G To: Mayor and City Council From: David Martin, Planning and Community Development Director Subject: Application for a California Coastal Commission Local Coastal Program (LCP) Grant to Update the City's Local Coastal Program Land Use Plan and Develop an Implementation Plan for Certification Recommended Action Staff recommends that the City Council: 1. Adopt the attached resolution authorizing the application for grant funds in the amount of $250,000 from the California Coastal Commission for a Local Coastal Program (LCP) Planning Grant. 2. Authorize the City Manager to execute all necessary documents to apply for the grant, and if awarded, accept and administer the grant, including any renewals. 3. Authorize the budget changes as outlined in the Financial Impact and Budget Actions section of this report, in the event that the grant is awarded. Executive Summary This report seeks authorization to submit an application to the California Coastal Commission for a Local Coastal Program (LCP) Planning Grant for an amount of $250,000. The grant would be used to update and certify the City's LCP to reflect new coastal access created by transportation investments such as the Expo LRT, Coastal Commission environmental policies and for consistency with the LUCE, Downtown Specific Plan, and Civic Center Specific Plan. Although site specific amendments have been made, the LCP Land Use Plan (LUP) has not been substantially updated since its adoption in 1992. The update would reflect the City's circulation and urban design policies as they pertain to the Coastal Zone. The Coastal Commission's grant program is available to local jurisdictions within the Coastal Zone, and is offered specifically for the purpose of facilitating LCP planning to achieve certification of an LCP. The application was due November 22, 2013, and a Council resolution authorizing the application is due by December 19, 2013. According to the Grant Program Announcement, funding will be awarded in early 2014 and the 1 project must be completed within two years of the notice to proceed. There is no requirement for a match in this grant program. However, the City's application would leverage other efforts and commit in -kind staff time to support the project as a match to the requested funding. Background A Local Coastal Program (LCP) as defined by the Coastal Commission is comprised of two components: the Land Use Plan (LUP) and the Implementation Plan. An updated LUP would contain a current description of the conditions and issues that exist in Santa Monica's Coastal Zone and present land use and development policies designed to fulfill the intent of the State Coastal Act. While state law requires internal (horizontal) consistency between General Plan elements, the policies and regulations of the LCP take precedence within the Coastal Zone. The Implementation Plan would develop the process for the City's approval of Coastal permits. Once approved, the Commission's coastal permitting authority over most new development would be transferred to the City of Santa Monica, and requirements of the City's LCP would be applied in reviewing proposed development projects within the Coastal Zone. The Commission would retain permanent coastal permit jurisdiction over development proposed on tidelands, submerged lands, and public trust lands, and the Commission would also act on appeals for certain local government coastal permit decisions. The Commission also reviews and approves any amendments to previously certified Local Coastal Programs. The City adopted its current LCP /LUP in 1992, but has never adopted an Implementation Plan, with the result that currently all development in the Coastal Zone must also obtain a Coastal Commission permit after all City entitlements are approved. Since 1992, some substantial changes have occurred in regard to conditions in the Coastal Zone, including the impending arrival of the Expo Light Rail Line and the adoption of the LUCE. Additionally, the Coastal Commission is particularly interested in ensuring that its new programs and policies, especially those related to climate change and sea -level rise, are incorporated into Local Coastal Plans. K Discussion Staff is preparing a grant application for submittal to the California Coastal Commission to fund an update of the City's Land Use Plan that would reflect transportation and access investments like the Expo Light Rail, City policy in the LUCE, and updates based on the Civic Center Specific Plan and emerging Downtown Specific Plan. This planning effort is necessary because the 1992 LCP Land Use Plan is outdated, particularly due to the tremendous investment in multi -modal transportation infrastructure that provides more opportunities for public access to the beach and Pier. Additionally, there is concern that inconsistencies may develop between the LUP and policies the City may adopt for the Downtown Specific Plan. The update would also be an opportunity for the City's LUP to address new State policies that require analysis to adopt programs to plan for the effects of climate change and sea -level rise. While there are no minimum or maximum grant amounts, a total of $1 million is available, and in the last round, grants ranged from $50,000 to $300,000. Staff estimates that the project cost will be approximately $250,000. Preparation of a Local Coastal Program Amendment is statutorily exempt from the California Environmental Quality Act (CEQA) per CEQA Guidelines section 15265. The LCP project is anticipated to take approximately 18 -24 months to complete. This will involve review and update of the LUP to reflect current City policies, a community outreach component, coordination with the City's sustainability efforts and research to develop policy in regard to climate change, and the creation of an Implementation Plan in the form of an ordinance applicable to the Coastal Zone. The grant is anticipated to partially fund a limited term staff position, contract for consultant expertise to develop the implementation plan and other project expenses. If awarded in the current round, the project must be completed by April 2016 per the terms of the grant program. In the meantime, in order to ensure that the effective LUP reflects the most recent policy in the Downtown area, a limited amendment to the current LUP will be prepared for adoption along with the Downtown Specific Plan. The 3 more comprehensive update to the LUP proposed to be funded through this grant program is still desirable to ensure that projects within the entire Coastal Zone are reviewed within an environment of consistency. If awarded, the requested funding would also support development of an Implementation Plan to achieve a certified Local Coastal Plan, which would allow the City to issue its own Coastal Permits. Until now, lack of an Implementation Plan has meant that all Coastal Zone permits need approval from the Coastal Commission. Financial Impacts & Budget Actions The total amount of grant funds requested from Local Coastal Program (LCP) Planning Grant Program will be $250,000. The grant application will include a local in -kind match funding staff resources for the project. If awarded, revenue and expenditure budgets will be established in Division 267 (Strategic and Transportation Planning) for FY 2013 -14 for the awarded grant amount. Prepared by: Elizabeth Bar-El, AICP, Senior Planner Approved: '" �. David Martin Director, Planning and Community Development Attachment: A. Draft Resolution 0 Forwarded to Council: Rod Gould City Manager Reference: Resolution No. 10785 (CCS)