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O2053 f:\atty\muni\laws\barry\construction rate dcp-12d.doc City Council Meeting 10-08-02 Santa Monica, California ORDINANCE NUMBER 2053 (CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ADDING SECTION 9.04.10.02.450 AND PART 9.04.20.15 TO THE SANTA MONICA MUNICIPAL CODE AND DELETING SECTION 9.04.08.56.070 OF THE SANTA MONICA MUNICIPAL CODE TO ESTABLISH A CONSTRUCTION RATE PROGRAM FOR MUL TI-FAMIL Y DEVELOPMENT IN ALL MUL TIFAMIL Y RESIDENTIAL DISTRICTS AND A DESIGN COMPATIBILITY PERMIT REQUIREMENT FOR THE DEVELOPMENT OF CONDOMINIUMS AND OTHER MUL TI-FAMIL Y OWNERSHIP HOUSING WHEREAS, the 1998-2003 Housing Element Update Program 7.f required that the City monitor the rate of development activity in multi-family residential districts so as to ensure that rapid development did not jeopardize the character of the neighborhoods and negatively impact the quality of life; and WHEREAS, this program further provided that if the rate or pattern of development appeared to negatively affect the quality of life or character of neighborhoods, the City Council should consider enacting a construction rate program; and WHEREAS, the City began to experience a significant increase in the level of multi- family development activity in the City's multi-family residential districts in the late 1990's and WHEREAS, monitoring the rate of development activity in multi-family residential districts revealed that the rate of development in 1999~16 projects) represented a 246% increase over the rate in 1998/1997 (6 and 7 projects respectively) and a 533% increase over the rate in 1996 (3 projects) and the rate of development in 2000 surpassed the development rate of 1999 with 18 projects obtaining building permits; and WHEREAS, the City itself is extremely dense with a land area of just eight square miles, a population of approximately 85,000 people, and just over a third of the City zoned multi-family residential; and WHEREAS, this substantial increase in the rate of multi-family development activity negatively affected the quality of life or character of neighborhoods WHEREAS, it was not simply the rate of development that threatened the City's character and quality of life, but the lack of compatibility of new condominium developments negatively impacted the context of existing neighborhoods including the character and scale of existing residences; and WHEREAS, the City's Zoning Ordinance currently requires approval of a Conditional Use Permit ("CUP") for the development of condominiums, which is intended to allow the establishment of those uses which have some special impact or uniqueness such that their effect on the surrounding environment cannot be determined in advance of the proposed use and its particular location; and WHEREAS, in conjunction with the preparation of the 1998-2003 Housing Element Update, the City determined that it should eliminate the requirement that condominium projects obtain a CUP since it is generally not the condominium use that is at issue in the City's review of residential condominium applications; instead, the City determined it should evaluate other procedures which would achieve an appropriate level of design review so as to ensure that the physical development is compatible with and relates harmoniously to the surrounding sites and neighborhoods; and 2 WHEREAS, the 1998-2003 Housing Element Update Program 1.a required the elimination of the Conditional Use Permit (CUP) requirement for condominiums and the evaluation of other procedures which could achieve an appropriate level of design review; and WHEREAS, in light of this policy and to ensure that condominium development does not threaten the existing character and scale of the City's neighborhoods, the City determined that it should replace the conditional use permit requirement for condominium projects with a design compatibility permit; and WHEREAS, the City Council adopted Ordinance Number 1966 (CCS) on March 7, 2000 which established a construction rate program, established a design compatibility permit and required a design compatibility permit for condominium development; on April 11,2000, the City Council adopted Ordinance Number 1969 (CCS) extending Ordinance Number 1966 (CCS) for eighteen months; on August 1, 2000, the City Council adopted Ordinance Number 1984 (CCS) extending Ordinance Number 1966 (CCS) until November 11, 2001; and on October 9, 2001 the City Council adopted Ordinance Number 2022 (CCS) extending Ordinance 1966 (CCS) until November 11, 2002; and WHEREAS, the City Council found and declared that the public health, safety and general welfare required the adoption and extension of Ordinance 1966 (CCS) through the adoption of Ordinance 1969 (CCS), Ordinance Number 1984 (CCS) and Ordinance Number 2022 (CCS) to avert the negative impacts of construction such as traffic circulation, noise, neighborhood aesthetics and pedestrian enjoyment of City streets, to minimize the disruptive effects of the construction process on the neighborhood by limiting the number of projects in close proximity to each other which can be constructed at any 3 one time through regulating both the timing and distribution of construction projects through the building permit approval process, and to establish a design compatibility review process for condominiums to ensure that the physical development is compatible with and relates harmoniously to the surrounding sites and neighborhoods; and WHEREAS, these interim ordinances have been very successful in minimizing the disruptive effects of the construction process and ensuring that new development is compatible with the surrounding sites and neighborhoods; and WHEREAS, the significant rate of multi-family development activity continues in the City's multi-family residential districts with 10 building permits issued for multi-family developments in 2001 and 9 building permits issued so far in 2002, and consequently, the construction rate program and the design compatibility permit remains vital to the quality of life in the City's neighborhoods; and WHEREAS, in preparing its 2000-2005 Housing Element, the City contracted with the policy, financial, and management consulting firm of Hamilton, Rabinovitz & Alschuler ("H R&A"); and WHEREAS, HR&A undertook an extensive review and analysis of numerous governmental programs to assess whether these programs operated as a constraint on housing development within the meaning of State Housing Element Law; and WHEREAS, as part of this review and analysis, HR&A specifically assessed whether the Construction Rate Program or the Design Compatibility Permit requirement would operate as governmental constraints and concluded that neither programs operated as a constraint on housing development; and 4 WHEREAS, the concerns which motivated the City Council to adopt and extend these interim ordinances remain; and WHEREAS, for these reasons, the City's Comprehensive Land Use and Zoning Ordinance should be revised to regulate the rate of construction to avert the negative impacts of construction on traffic circulation, noise, neighborhood aesthetics and pedestrian enjoyment of City streets and to ensure that development is consistent with the public health, safety and welfare and is compatible with and relates harmoniously to the surrounding sites and neighborhood; and WHEREAS, on August 21, 2002, the Planning Commission conducted a public hearing to adopt a Resolution of Intention which stated the Commission's intention to modify the Zoning Code to establish a Construction Rate Program and a Design Compatibility Permit; and WHEREAS, on September4, 2002, the Planning Commission held a public hearing on these proposed zoning text amendments; and WHEREAS, the Planning Commission forwarded a recommendation to the City Council to adopt Zoning Code amendments to establish the proposed Construction Rate Program and Design Compatibility Permit; and WHEREAS, the City Council held a public hearing on the proposed Zoning Ordinance Text Amendments on September :24,2002; and WHEREAS, the proposed amendments are consistent in principle with the goals, objectives, policies, land uses, and programs specified in the adopted General Plan, specifically, the 2000-2005 Housing Element Policy 1.3 which states establish and maintain development standards that support development while protecting quality of life goals and 5 Policy 1.7 which states that the City should maintain development standards that ensure that the development of new housing in residential neighborhoods is designed to fit within the existing neighborhood context; and WHEREAS, the public health, safety, and general welfare require the adoption of the proposed amendment to ensure the protection of neighborhood aesthetics and pedestrian enjoyment through the Design Compatibility process, which requires that physical development is compatible with and relates harmoniously to the surrounding sites and neighborhoods and to avert the negative impacts of construction, such as traffic circulation, noise, neighborhood aesthetics and pedestrian enjoyment of City streets through a construction rate program which minimizes the disruptive effects of construction on residential neighborhoods by limiting the number of projects in close proximity to each other that can be constructed at anyone time, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Section 9.04.10.02.450 is hereby added to the Santa Monica Municipal Code to read as follows: 9.04.10.02.450 Construction rate program. (a) For projects involving the new construction or substantial remodel of two or more dwelling units in all multi-family residential districts in the City for which a development application was deemed complete on or after March 7, 2000, only one such construction project shall be allowed 6 within a five hundred foot radius of another construction project subject to this Section. Except as provided in subsection (c) of this Section, this restriction shall apply for fifteen months after issuance of a building permit, after which time another project may begin construction in the defined area. The multi-family residential districts in the City are: R2R, R2, R3, R4, RVC, RMH, OP-Duplex, OP2, OP3, OP4, NVV-Overlay, BR Boulevard Residential R3 Overlay, R2B, and R3R. Building permits shall be provided on a first come first served basis in accordance with the terms of this Section. No application for a building permit shall be accepted for filing or otherwise processed by the Building and Safety Division unless the applicant provides documentation on forms provided by the City that the project has received all other city or state approvals or permits necessary to commence the project, with the exception of building and sewer allocation permits. During the plan-check process, the Building and Safety Division shall determine the status of other building permits for projects in the area. A building permit shall not be issued when the Building Officer determines that a building permit has been issued in the previous fifteen months for any other project within a five hundred foot radius of the subject property unless the owner of the previously permitted project has formally relinquished the building permit for that project or obtained a certificate of occupancy for the project 7 (d) If the Building Officer determines that another building permit has been issued less than fifteen months prior to the date on which the building permit has received all plan-check approvals and the exceptions specified in subsections (c) and (e) do not apply, the Building Officer shall place the project on a waiting list in order of the date and time of day that the permit application received all plan-check approvals. The life of other City approvals or permits necessary to commence the project shall be automatically extended by the amount of time that a project remains on the waiting list. The Building Officer shall approve the project in accordance with the Uniform Technical Code in effect at the time of the plan check. (e) The following projects shall be exempt from this Section: Affordable housing projects in which one hundred percent of the units will be deed restricted for very low, low, middle, and/or moderate income housing. Structures identified by the Building and Safety Division as unreinforced masonry construction and subject to City-mandated seismic upgrading. Projects to be developed on a site that is vacant. Projects to be developed on a site in which either: (a) the structures on the site are uninhabitable, not as a result of the owner's failure to maintain the structure, or the property of which the structure is a part, in good repair, and the structures cannot be rendered habitable in an economically feasible manner or (b) the current use of the property is not 8 otherwise economically viable. The City shall prepare an exemption application form which delineates all submission requirements. An owner shall not be required to file a project application with the exemption application. City staff shall make a final determination whether a project meets the requirements of this subdivision (4) within ninety (90) days after the owner's exemption application for the project is deemed complete, (f) The Planning and Community Development Department may develop administrative guidelines implementing this Section SECTION 2. Santa Monica Municipal Code Section 9.04.16.01.020 is hereby amended to read as follows: 9.04.16.01.020 Applicability. All new or converted residential and commercial condominiums, community apartment projects, stock cooperatives, and cooperative apartments for which a development application was deemed complete on or after March 7, 2000 shall require approval of a Design Compatibility Permit, in addition to compliance with Santa Monica Municipal Code Section 9.04.16.01.030 establishing additional minimum requirements for condominiums and any and all requirements of Chapter 9 9.20 of this Article for preparation, review, and approval of a Subdivision Map. SECTION 3. Part 9.04.20.15 is hereby added to the Santa Monica Municipal Code to read as follows: Part 9.04.20.15 Design Compatibility Permit 9.04.20.15.010 Purpose. A Design Compatibility Permit is intended to allow the construction of condominiums and other multi-family ownership housing to ensure the design and siting of the projects do not result in an adverse impact on the surrounding neighborhood. The permit allows for: Review of the location, size, massing, and placement of the proposed structure on the site and in relation to the surrounding neighborhood; Review of the location of proposed amenities within the project. An evaluation of the project with regard to fixed and established standards, 9.04.20.15.020 Application. An application for a Design Compatibility Permit shall be filed in a manner consistent with the requirements contained in Santa Monica Municipal Code Part 9.04.20.20, Sections 9.04.20.20.010 through 9.04.20.20.080. 10 9.04.20.15.030 Hearing and N()tice. Upon receipt in proper form of a Design Compatibility Permit application, a public hearing before the Planning Commission shall be set and notice of such hearing given in a manner consistent with Santa Monica Municipal Code Part 9.04.20.22, Sections 9.04.20.22.010 through 9.04.20.22.140, 9.04.20.15.040 Findings. Following a public hearing, the Zoning Administrator shall prepare a written decision which shall contain the Planning Commission's findings of fact upon which such decision is based. The Commission, or City Council on appeal, shall approve or conditionally approve a Design Compatibility Permit application in whole or in part if all of the following findings of fact can be made in an affirmative manner: (1 ) The physical location, size, massing, and placement of proposed structures on the site and the location of proposed amenities within the project are compatible with and relate harmoniously to surrounding sites and neighborhoods. (2) The physical location, size, massing, placement of proposed structures on the site, and parking access and the location of proposed amenities within the project would not be detrimental to the public interest, health, safety, convenience, or general welfare. 11 (3) The rights-of-way can accommodate autos and pedestrians, including adequate parking and access. (4) The health and safety services (police, fire etc.) and public infrastructure (e.g., utilities) are sufficient to accommodate the new development. (5) Reasonable mitigation measures have been included for all adverse impacts identified in an Initial Study or Environmental Impact Report or a Statement of Overriding Considerations has been adopted for the proposed project. (6) The proposed use conforms precisely to the minimum requirements outlined in Section 9.04.16, Subchapter 9.04.16.01.030. 9.04.20.15.050 Term of Permit. The Design Compatibility Permit shall expire if the rights granted are not exercised within the period established by the Planning Commission or City Council on appeal as a condition of granting the Design Compatibility Permit, or, in the absence of such established time period, within two (2) years from the effective date of permit approval. However, if the permit is for affordable housing or a mixed use project where housing units comprise at least seventy-five percent of the floor area of the project (collectively "housing project"), and the housing project has received City, State or Federal funding or is comprised of units at least fifty percent of which are deed-restricted to be affordable to low income households and the remainder 12 of which are deed-restricted to be affordable to low or moderate income households, in the absence of a time period established by the Planning Commission or City Council on appeal as a condition of granting the permit, the Design Compatibility Permit shall expire if the rights granted are not exercised within three years, or if located in the Coastal Zone, three and one- half years from the effective date of permit approval. (a) Exercise of Rights. "Exercise of rights" shall mean actual commencement of the use granted by the permit, unless the permit is granted in conjunction with approval of new construction, If the Design Compatibility Permit is granted in conjunction with approval of new construction, issuance of a building permit shall constitute exercise of rights under the Design Compatibility Permit; provided, however, that, unless otherwise specified as a condition of project approval, the Design Compatibility Permit shall expire if: (1 ) The building permit expires; or (2) The rights granted under the Design Compatibility Permit are not exercised within one year following the earliest to occur of the following: issuance of a Certificate of Occupancy; or if no Certificate of Occupancy is required, the last required final inspection for the new construction. (b) Extension. If the applicant files an extension request with the Zoning Administrator in writing prior to expiration of the permit, the Zoning Administrator may administratively grant a one-year extension of the term of 13 the Design Compatibility Permit. The applicant may apply to the Planning Commission for any further extension if such request is filed at least one month prior to the permit's expiration. Such extension request shall be processed in the same manner and for the same fee as a new Design Compatibility Permit. The Planning Commission may grant an extension request for good cause, and may consider in this review the extent to which the project is consistent with current development standards and policies, whether the project is consistent in principle with the goals, objectives, policies, land uses, and programs specified in the adopted General Plan, conditions surrounding the project site and whether the project will adversely effect public health, safety and general welfare. 9.04.20.15.060 Revocation. The Planning Commission may, or upon direction from the City Council, revoke any approved Design Compatibility Permit in accordance with the following procedure: (a) A revocation hearing shall be held by the Planning Commission. Notice of the hearing shall be published once in a newspaper of general circulation within the City and shall be served either in person or by registered mail on the owner of the property and on the permit holder at least 10 days prior to such hearing. The notice of hearing shall contain a statement of the specific reasons for revocation, (b) After the hearing, a Design Compatibility Permit may be revoked 1..1. by the Planning Commission, or by the City Council on appeal or review, if any one of the following findings are made: That the Design Compatibility Permit was obtained by misrepresentation or fraud. That the use for which the Design Compatibility Permit was granted has ceased or has been suspended for six or more consecutive calendar months. (3) That the conditions of the permit have not been met, or the permit granted is being or has recently been exercised contrary to the terms of the approval or in violation of a specific statute, ordinance, law or regulation (c) A written determination of revocation of a Design Compatibility Permit shall be mailed to the property owner and the permit holder within 10 days of such determination. 9.04.20.15.070 Appeals. The approval, conditions of approval, denial, or revocation of a Design Compatibility Permit may be appealed within fourteen consecutive calendar days of the date the decision is made in the manner provided in Santa Monica Municipal Code Part 9.04.20.24, Sections 9.04.20.24.010 through 9.04.20.24.040. 15 9.04.20.15.080 Hearings. Notice of public hearings shall be given in accordance with Santa Monica Municipal Code Section 9.04.20.22.050 to all owners and residential and commercial tenants of property within a radius of 500 feet for a Design Compatibility Permit. SECTION 4, Santa Monica Municipal Code Section 9.04.08.56.070 is hereby repealed in its entirety. SECTION 5. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. SECTION 6, 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 7. The Mayor shall sign and the City Clerk shall attest to the passage of 16 Adopted and approved this 8th day of October, 2002. State of California ) County of Los Angeles) ss. City of Santa Monica ) I, Maria M. Stewart, City Clerk of the City of Santa Monica, do hereby certify that the foregoing Ordinance No. 2053 (CCS) had it's introduction on September 24, 2002, and was adopted at the Santa Monica City Council meeting held on October 8,2002 by the following vote: Ayes: Council members: Holbrook, O'Connor, Bloom, Genser, Mayor Pro Tem McKeown, Mayor Feinstein Noes: Council members: Katz Abstain Council members: None Absent: Council members: None ATTEST: