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SR 05-10-2016 3F City Council Report City Council Meeting: May 10, 2016 Agenda Item: 3.F To: Mayor and City Council From: David Martin, Director, Planning and Community Development, Planning & Community Development, Strategic Planning Subject: Application for a California Coastal Commission Local Coastal Program (LCP) Planning Grant For Additional Scope to 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 $175,000 from California Coastal Commission Local Coastal Program (LCP) Planning Grant Program. 2. Authorize the City Manager to execute all necessary documents to apply for the grant, accept the grant, if awarded, and accept all grant renewals, if awarded. 3. Authorize budget changes as outlined in the Financial Impacts & 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 (CCC) for a Local Coastal Program (LCP) Planning Grant (Round 3) for an amount of $175,000 to extend the scope of work involved with developing the Implementation Plan portion of the project. Staff is now halfway through the process of preparing the LCP Land Use Plan (LUP), which is anticipated to be forwarded to the Council by April or May 2017. Preparation of an Implementation Plan (IP), also known as a Coastal Zoning Ordinance, will follow this process. Initial research and some preparation of the Implementation Plan is already being undertaken, using funding included in the current grant of $225,000 received from the same Planning Grant program in 2014 (Round 2). Both the LUP and IP must be adopted by Council and certified by the Coastal Commission in order to transfer authority to issue coastal development permits to the City of Santa Monica. The Round 2 grant that the City received was initially scoped to complete both the Land Use Plan and the Implementation Plan by May 2017. However, as the project progressed, it became clear that in order to develop an Implementation Plan in the area, the scope and budget for the project would need to be increased substantially 1 of 5 beyond what was envisioned when the initial grant was requested. In addition, it became evident that completing the Land Use Plan ahead of the Implementation Plan offers advantages in terms of clarifying policy and receiving Commission certification before fully developing the implementing document. The requested funding would be used to extend the 0.6 FTE Assistant Planner limited- term, grant funded position for an additional 17 months, until September 28,2018, the date by which projects under Round 3 grants must be completed, and to engage consultants that specialize in LCP implementation plans. Background Coastal Zone, and is offered specifically for the purpose of facilitating planning projects that will achieve certification of an LCP. The application for Round 3 is due May 20, 2016, and must include a Council resolution authorizing the application (Attachment A). There is no requirement for a match in this grant program. However, the Cit application will leverage other resources, including the current $225,000 CCC grant, the $235,000 grant from the Ocean Protection Council to evaluate Sea Level Rise, $20,000 additional scope in the current consultant contract, and in-kind staff time. 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 (IP). Staff is currently preparing an updated LUP based on present land use and development policies, in requirements in regard to sea level rise, climate change and access issues. 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 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 Development Permit from the Coastal Commission after all City entitlements are approved. The LCP Update project is the first effort of the City since the initial LCP Land Use Plan was certified in 1992. Since then, some substantial changes have occurred in regard to conditions in the Coastal Zone, including the Civic Center development, Pier restoration, many beach improvements, the Expo Light Rail Line and the adoption of the LUCE and other implementation plans. 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 Programs. Planning Grant in the amount of $225,000 that was awarded in 2014. Since receiving the grant, staff has established a strong working relationship with the CCC staff, and the development of the LUP has progressed. The grant is funding both a 0.6 FTE Assistant Planner limited term position and a professional services agreement with Dudek to On June 24, 2014, the Council 2 of 5 approved a previous resolution for the 2014 grant that was awarded in that round. On October 27, 2015, the Council awarded a contract to Dudek in an amount not to exceed $124,000 (including a $12,000 contingency), to serve as project consultants and assist in preparation of the LCP . Since the contract was authorized, two community meetings have been held to discuss both general and specific topics related to planning in the coastal zone and anticipated climate change impacts. In addition, numerous presentations have been made to City commissions, the Pier Board and community groups (residents and businesses). Some of these presentations have been provided jointly with the Downtown Community Plan (DCP) team. Once the DCP is adopted, updated policies and property development standards developed through the DCP process will be incorporated into the new LCP as th appropriate for those downtown areas (west of 4 Street) located within the Coastal Zone. The Implementation Plan, also known as a Coastal Zoning Ordinance will regulate the , ng entitlements and Coastal Development Permits (CDP). Once approved, most CDP authority would be transferred to the City of Santa Monica, and projects within the Coastal Zone would be reviewed under the Coastal Zoning Ordinance. 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 that may be filed for projects within a specific area just inland of submerged tide lands. The Coastal Commission also reviews and approves any amendments to previously certified Local Coastal Programs. The LCP effort is being carefully coordinated with the Office of Sustainability and the Environment, and is utilizing the results of their study of coastal erosion and shoreline change along the Los Angeles County coastline. That study, being conducted by the non-profit USC Sea Grant, is funded by a $235,000 Ocean Protection Council grant. The study is providing important scientific data and forecasting for Santa Monica and other coastal communities in regard to the vulnerability of property and infrastructure within the coastal zone. The LUP will also incorporate appropriate adaptation strategies emerging from this study. Discussion Staff is preparing to submit another grant application to the California Coastal Commission to fund additional scope for the development of the Implementation Plan. Initially, it was anticipated that the first ($225,000) grant awarded on November 24, 2014 would cover both project documents. However, as the project progressed, it format, which is a completely separate zoning ordinance for the coastal area, the scope and budget for the project would need to be increased substantially beyond what was envisioned when the initial grant was requested. In addition, it became evident that completing the Land Use Plan ahead of the Implementation Plan offers advantages in terms of clarifying policy and receiving Commission certification before fully developing the implementing document. 3 of 5 CCC grant authorities, now consists of completion of the LUP by May 2017 along with a 75% complete draft of the implementation plan. The scope of the requested grant would consist of the remaining work required to complete the implementation plan. The current grant funds a limitedterm, part-time Assistant Planner position, project - consultants (Dudek) and a small amount of other project expenses. If this grant request is awarded, it would fund a similar process including in-house staff time and outside consultant expertise. The additional funding would need to be used by September 28, 2018, adding 17 months to the project timeline to develop a complete draft of the coastal zoning ordinance, undertake public review, and bring a final draft to decision makers for adoption. While there are no minimum or maximum grant amounts under the Planning Grant program, a total of $3 million is available in this round. Preparation of a Local Coastal Program Amendment is statutorily exempt from the California Environmental Quality Act (CEQA) per CEQA Guidelines section 15265. Financial Impacts & Budget Actions The total amount of grant funds requested from the California Coastal Commission (CCC) Local Coastal Program (LCP) is $175,000. If awarded, the grant requires no local g the current CCC LCP grant, the Ocean Protection Council (OPC) grant, an additional $20,000 of professional services included in the current contract with Dudek, and in-kind staff time. 4 of 5 If awarded, staff would establish revenue and appropriate expenditure budgets to reflect use of grant funds. If renewals are awarded, budget changes, including the extension of the limited term position, will be included in subsequent year budgets, contingent on Council budget approval. Prepared By: Elizabeth Bar-El AICP, Senior Planner Approved Forwarded to Council Attachments: A. Council Report, October 27, 2015 B. Council Report, June 24, 2014 C. Draft Resolution for 2016 CCC Grant Application 5 of 5 wĻŅĻƩĻƓĭĻʹ wĻƭƚƌǒƷźƚƓ bƚ͵ ЊЉВЎЋΛ//{Μ