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SR-06-24-2014-3PID Yp i Council Report Santa Monica City Council Meeting: June 24, 2014 Agenda Item: 3- 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, accept the grant, if awarded, and accept all grants renewals, if awarded. 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 Light Rail, Coastal Commission environmental policies and for consistency with the LUCE, Civic Center Specific Plan, and final Downtown 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 relevant updated 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 is due July 7, 2014 and must include a Council resolution authorizing the application (Attachment A). If funded, the project must be completed by April 30, 2017. There is no requirement for a match in this grant program. However, the City's application would be strengthened by leveraging other resources such as the $235,000 grant from the Ocean Protection Council to evaluate Sea Level Rise, which can also inform LCP policy development, and in -kind staff time spent prior to the grant in support of the LCP update or during the grant period. 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 that complement adopted City policy and that satisfy 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 Coastal 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 Coastal Commission would retain permanent coastal permit jurisdiction over development proposed on tidelands, submerged lands, and public trust lands, and would also act on appeals for certain local government coastal permit decisions. The Coastal 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. iA The City submitted an application for the 2013 Local Coastal Program Planning Grant cycle, which was not awarded. The application was listed (Attachment A, page 31) as a "proposal that closely matched Grant criteria" but was not recommended due to limited funding. The Council approved a resolution for the previous application on November 26. 2013. Discussion Staff is preparing a grant application for submittal to the California Coastal Commission to fund an update of the City's Coastal 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 existing Civic Center Specific Plan and emerging Downtown Specific Plan. This planning effort is necessary because the 1992 LCP Land Use Plan is outdated due to the 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 be adopting in the final Downtown Specific Plan. The update would also be an opportunity for the City's Coastal LUP to address new State policies that require analysis to adopt programs to plan for the effects of climate change and sea -level rise. The LCP effort would be assisted by information and recommendations that will emerge from a study on sea level rise in the Santa Monica Bay that will examine coastal erosion and shoreline change along the coastline. This study, which is anticipated to be launched in the coming months, is being funded by a 2013 Ocean Protection Council grant in the amount of $235,000 awarded to the City of Santa Monica (lead) and the non - profit USC Sea Grant. The study will inform the LCP policies of Santa Monica and other coastal communities in regard to the vulnerability of property and infrastructure and will include an examination of appropriate adaptation strategies that could be evaluated for this local coastal land use plan. While there are no minimum or maximum grant amounts, a total of $1 million is available. In the last round, awarded grant amounts ranged from $29,000 to $130,000. Staff estimates that the project cost would be approximately $250,000. Preparation of a 3 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 would involve review and update of the LUP to reflect current City policies, a community outreach component, coordination with the City's sustainability and sea level rise efforts, 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 2017 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 final Downtown Specific Plan, which is anticipated to be brought forward for Council consideration prior to the comprehensive LUP update. The 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 would be $250,000. There is no local match required. However, the City's application will be strengthened by leveraging existing, allocated City resources. The grant application would include in -kind staff time as a match for the funds. If awarded, revenue and expenditure budgets will be established in Division 20267 for Fiscal Years 2014 -15 through 2016 -17 for the awarded grant amount. If renewals are awarded, budget changes will be included in subsequent year budgets, contingent on Council approval and budget adoption. Prepared by: Elizabeth Bar-El, AICP, Senior Planner Approved: Forwarded to Council: Attachment: A. Draft Resolution 11 Reference: Resolution No. 10814 (CCS)