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O26421 City Council Meeting: July 14, 2020 Santa Monica, California ORDINANCE NUMBER 2642 (CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING SANTA MONICA MUNICIPAL CODE SECTION 9.56.270 TO ELIMINATE WAIVERS OF BUILDING PERMIT AND PLANNING APPLICATION FEES FOR DESIGNATED LANDMARKS AND CONTRIBUTING BUILDINGS AND STRUCTURES IN HISTORIC DISTRICTS WHEREAS, historic preservation is a defining community value for the City of Santa Monica (the “City”); and WHEREAS, this value reflects the community’s consensus that the City’s unique identity and character springs from its long and rich history; and WHEREAS, the community’s present and future welfare depend, in part, upon understanding the City’s history and evolution as a unique community; and WHEREAS, retention and preservation of historic resources also promotes the public health, safety and welfare by revitalizing neighborhoods and business districts, enhancing the City’s economy, improving local aesthetics, and enriching the City’s culture; and WHEREAS, the Landmark and Historic District Ordinance of the City of Santa Monica (the “Landmark Ordinance”) was first adopted in 1976 to protect improvements and areas that represent elements of the City’s cultural, social, economic, political and architectural history; safeguard the City’s heritage as it is embodied and reflected in such improvements and areas; foster civic and community pride; protect and enhance DocuSign Envelope ID: 42763CB8-FE7E-4C3B-B67E-3F81842B71A5 2 aesthetics and attractions; and promote the education, pleasure and welfare of City residents and visitors alike; and WHEREAS, the City’s ongoing commitment to historic preservation was reaffirmed in 2002 when the City Council adopted the Historic Preservation Element of the General Plan, and again in 2010 when the City adopted the Land Use and Circulation Element of the General Plan (“LUCE”); and WHEREAS, in 2015, the City adopted a comprehensive Zoning Ordinance Update that emphasized the City’s historic preservation priorities by including enhanced protections and incentives for designated historic resources and potential historic resources throughout the City; and WHEREAS, Santa Monica Municipal Code (“SMMC”) Section 9.56.270 provides additional incentives for designated historic resources, including fee waivers for building permit and planning applications for designated Landmarks and contributing buildings or structures in Historic Districts, fee waivers for Certificates of Appropriateness and Administrative Approvals, application of the State Historic Building Code, priority plan check processing, and the opportunity for property tax reduction through the Mills Act, California Government Code Section 50280, et seq. (the “Mills Act”); and WHEREAS, the property tax reduction available through the Mills Act is the largest financial incentive available to Landmarks and contributing buildings and structures to Historic Districts; and WHEREAS, the Landmarks Ordinance prohibits any alteration, restoration, construction, removal, relocation, or demolition, in whole or in part, of or to a Landmark DocuSign Envelope ID: 42763CB8-FE7E-4C3B-B67E-3F81842B71A5 3 or Landmark Parcel, or of or to a building or structure within a Historic District without first obtaining a Certificate of Appropriateness or a Certificate of Administrative Approval; and WHEREAS, Landmarks, Landmark Parcels, and building and structures within Historic Districts are further subject to generally-applicable building permit and planning application requirements; and WHEREAS, the economic impacts of the COVID-19 pandemic have devastated nearly all of the City’s revenue streams, including sales tax, transient occupancy tax, parking revenue, and business license revenue; and WHEREAS, after reviewing these impacts at its April 14, 2020 meeting, Council directed staff to develop a plan to restructure City operations to meet the challenges posed by COVID-19 and to balance the budget; and WHEREAS, on May 5, 2020, the City Council adopted a restructuring plan (the “Restructuring Plan”) to: merge the Planning and Community Development Department and Building and Safety, City Planning, Economic Development, and Mobility divisions into the Community Development Department, and merge the Community & Cultural Services Department and the Housing Division into the Community Services Department; and WHEREAS, on June 9, 2020, the City Council received the FY 2020-21 through FY 2024-25 Five-Year Forecast, the FY 2020-21 Proposed Budget, and the FY 2020-22 Proposed Biennial Capital Improvement Program (CIP) Budget; and WHEREAS, the FY 2020-21 Proposed Budget reflects a 23.8% percent decrease from the FY 2019-20 Revised Budget resulting from the economic crisis caused by the COVID-19 pandemic; and DocuSign Envelope ID: 42763CB8-FE7E-4C3B-B67E-3F81842B71A5 4 WHEREAS, as the community emerges from quarantine and looks to the City for a return to service, including the continuation of programs that are being provided through the use of one-time funds, the City will require sustainable long-term sources of revenue to maintain and protect essential services; and WHEREAS, the City is pursuing three approaches to address this concern, including increasing cost recovery through fees, public-private partnerships, and revenue tax measures; and WHEREAS, on June 9, 2020, the City Council approved City staff’s recommendation regarding a restructured historic preservation program as well as several proposed fee and waiver changes designed to increase cost recovery, including eliminating the building permit and planning application waivers for Landmarks and contributing buildings or structures in Historic Districts; and WHEREAS, other incentives for designated historic resources provided under SMMC Section 9.56.270 will remain in place, including fee waivers for Certificates of Appropriateness and Administrative Approvals and the opportunity to receive a property tax reduction under the Mills Act; and WHEREAS, the City now desires to amend SMMC Section 9.56.270 to eliminate fee waivers for building permit and planning applications for Landmarks and contributing buildings or structures in Historic Districts. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Santa Monica Municipal Code Section 9.56.270 is hereby amended to read as follows: DocuSign Envelope ID: 42763CB8-FE7E-4C3B-B67E-3F81842B71A5 5 9.56.270 Preservation Incentives A. Architectural Review Exemption. 1. Provided that a Certificate of Appropriateness is obtained from the Landmarks Commission, the following projects shall be exempt from review by the Architectural Review Board: a. All work to a designated landmark building or contributing building or structure to an adopted Historic District; and b. All additions to, modifications of, alterations of, or new construction on a landmark parcel or parcel containing a contributing building or structure to an adopted Historic District. 2. The Landmarks Commission may refer any of these matters to the Architectural Review Board for comment. B. Certificates of Appropriateness/Administrative Approval Fees. A l l certificate of appropriateness and certificate of administrative approval fees for any alteration, restoration or construction, in whole or in part, to a designated landmark or to a contributing building or structure located in a Historic District shall be waived. C. Parking Incentives. Any parking incentives permitted by the Zoning Ordinance. D. Streetscape Improvements in Historic Districts. Whenever streetscape improvements are proposed by the City in areas that are designated Historic Districts, the City shall consider the use of materials, landscaping, light standards and signage that are compatible with the area’s historic and architectural character. DocuSign Envelope ID: 42763CB8-FE7E-4C3B-B67E-3F81842B71A5 6 E. State Historical Building Code. The California State Historical Building Code (Title 24, Part 8, California Administrative Code) shall be applied to alterations to designated structures of merit, landmarks, and contributing buildings and structures located in Historic Districts. F. Historical Property Contracts. Designated structures of merit, landmarks and contributing buildings or structures located in Historic Districts that are privately owned and not exempt from taxation shall be considered qualified historical properties eligible for historical property contracts submitted or entered into, pursuant to the provisions of Article 12, commencing with Section 50280, Chapter 1, Part 1, Division 1, Title 5, of the California Government Code. The City Council shall, by resolution approve a historical property contract with the owner of a qualified historical property, provided that: 1. The property has no confirmed and outstanding violations of this Code, or any other applicable Federal, State or local law, rule or regulation; 2. The property is not subject to a tax delinquency; and 3. All completed or ongoing alterations, construction or rehabilitation to designated buildings or structures located on the property conform to the Secretary of Interior’s Standards for the treatment of Historic Properties. G. Plan Check Processing. Structures designated as landmarks or contributing buildings or structures to a Historic District shall receive priority Building Division plan check processing. SECTION 2. Any provision of the Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies DocuSign Envelope ID: 42763CB8-FE7E-4C3B-B67E-3F81842B71A5 7 and no further, is hereby repealed or modified to that extent necessary to effect 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 this 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. This Ordinance shall become effective 30 days from its adoption. APPROVED AS TO FORM: _______________________ GEORGE S. CARDONA Interim City Attorney DocuSign Envelope ID: 42763CB8-FE7E-4C3B-B67E-3F81842B71A5 Approved and adopted this 14th day of July, 2020. _____________________________ Kevin McKeown, Mayor State of California ) County of Los Angeles ) ss. City of Santa Monica ) I, Denise Anderson-Warren, City Clerk of the City of Santa Monica, do hereby certify that the foregoing Ordinance No. 2642 (CCS) had its introduction on June 23, 2020 and was adopted at the Santa Monica City Council meeting held on July 14, 2020, by the following vote: AYES: Councilmembers Davis, Himmelrich, McCowan, Winterer, Jara, Mayor Pro Tem O’Day, Mayor McKeown NOES: None ABSENT: None ATTEST: _____________________________________ _________________ Denise Anderson-Warren, City Clerk Date A summary of Ordinance No. 2642 (CCS) was duly published pursuant to California Government Code Section 40806. DocuSign Envelope ID: 42763CB8-FE7E-4C3B-B67E-3F81842B71A5 7/22/2020