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R11367Page 1 of 7 City Council Meeting October 12, 2021 Santa Monica, California RESOLUTION NUMBER 11367 (CCS) (CITY COUNCIL SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ADOPTING ADOPTING POLICIES AND PROCEDURES FOR PROVIDING PRIORITY SERVICE TO DEVELOPMENTS WITH HOUSING UNITS AFFORDABLE TO LOWER INCOME HOUSEHOLDS PURSUANT TO GOVERNMENT CODE SECTION 65589.7 WHEREAS, the California legislature has declared that the lack of affordable housing is a matter of vital statewide importance; and WHEREAS, Government Code Section 65589.7 requires municipalities and agencies which provide water and/or sewer services to adopt written policies and procedures that prioritize the provision of water and sewer services to proposed developments that include housing units affordable to lower income households; and WHEREAS, state law also prohibits denying or conditioning the approval of an application for services, or reducing the amount of services applied for, merely because a proposed development that includes housing affordable to lower income households, except in limited circumstances; and WHEREAS, the City’s Water Resources Division is a retail water agency that provides potable and non-potable water for single- and multi-family DocuSign Envelope ID: 02C290D6-D2E9-45C9-AA77-E486F177A737 Page 2 of 7 residential, commercial, and industrial uses, as well as landscape irrigation and fire protection; and WHEREAS, the City and its water infrastructure are largely built-out, therefore, the domestic water supply infrastructure is already in place and generally fixed in nature; and WHEREAS, the City, to the extent practical, would provide water service when: 1) sufficient water supply and distribution capacity is available to accommodate the demand approved by the City’s Water Resources Division within the service area, and 2) the proposed development can be served water in a fashion that meets the City’s criteria; and WHEREAS, approval of applications for connection to the City’s water system shall not be based on the presence or absence of housing affordable to lower income households; and WHEREAS, in instances where the City has available water supply and capacity in its water distribution system, the provision of public water service to eligible residential housing developments will be on an income neutral basis ; and WHEREAS, in the event of service limitations due to supply, capacity or regulatory constraints, water service priority shall be given to proposed developments that include housing units affordable to lower income households in accordance with Government Code Section 65589.7 ; and WHEREAS, the City shall not deny or condition approval of an application for services to, or reduce the amount of services applied for by a proposed development that includes housing units available to lower income households, DocuSign Envelope ID: 02C290D6-D2E9-45C9-AA77-E486F177A737 Page 3 of 7 unless the City makes specific written findings that the denial, condition or reduction is necessary due to the existence of one or more of the following: 1. The City does not have sufficient water supply available, as demonstrated by written engineering analysis and a report on the condition of the water supply, to serve the needs of the proposed development. 2. The City does not have sufficient water system distribution capacity available, as demonstrated by written engineering analysis and a report on the condition of the water system distribution capacity, to serve the needs of the proposed development. 3. A State Department of Health Services, or other State Department, order prohibits new water connections. 4. The applicant has failed to agree to reasonable terms and conditions relating to the provision of water service generally applicable to development projects seeking water service from the City, including b ut not limited to, the requirements of local, state, or federal laws and regulations or payment of applicable fees; and WHEREAS, the policy and procedures regarding the prioritization for provision of water services to proposed developments that include housing units DocuSign Envelope ID: 02C290D6-D2E9-45C9-AA77-E486F177A737 Page 4 of 7 affordable to lower income households shall be reviewed at least once every five years and consider: 1) regulations and restrictions adopted by the City relating to water shortage contingencies and 2) water supply availability as determined by the City pursuant to its Urban Water Management Plan, and 3) plans, documents, and information relied upon by the City that provid e a reasonable basis for making service determinations; and WHEREAS, the City’s Water Resources Division is responsible for all facilities that support the collection and conveyance of wastewater for safe collection and treatment; and WHEREAS, the City’s wastewater is collected and ultimately treated at the City of Los Angeles’ Hyperion Treatment Plant; and WHEREAS, the City and its wastewater infrastructure are largely built-out, therefore, the wastewater collection infrastructure is already in place and generally fixed in nature; and WHEREAS, the City, to the extent practical, will provide wastewater service when: 1) sufficient collection capacity is available to accommodate the demand approved by the City’s Water Resources Division within the service area and 2) the proposed development can be provided with wastewater collection services in a fashion that meets the City’s criteria; and WHEREAS, approval of applications for connection to the City’s wastewater system shall not be based on the presence or absence of housing affordable to lower income households; and DocuSign Envelope ID: 02C290D6-D2E9-45C9-AA77-E486F177A737 Page 5 of 7 WHEREAS, in times where the City has available wastewater collection capacity in its sewer system and the Hyperion Treatment Plant has sufficient wastewater treatment capacity, the provision of public wastewater service to eligible residential housing developments will be on an income neutral basis ; and WHEREAS, in the event of service limitations due to collection capacity, treatment capacity or regulatory constraints, wastewater service priority shall be given to planned developments that including housing units affordable to lower income households in accordance with Government Code Section 65589.7, and the limitations set therein; and WHEREAS, the City shall not deny or condition the approval of an application for services to, or reduce the amount of services applied for, by a proposed development that includes affordable housing units affordable to lower income households, unless the City makes specific written findings that the denial, condition or reduction is necessary due to the existence of one or more of the following: 1. The City of Los Angeles’ Hyperion Treatment Plant does not have sufficient wastewater treatment capacity available, as demonstrated by written engineering analysis and a report on the condition of the treatment facility, to serve the needs of the proposed development. 2. The City does not have sufficient wastewater collection capacity available, as demonstrated by written engineering analysis and a report on the condition of the wastewater collection system capacity, to serve the needs of the proposed development. DocuSign Envelope ID: 02C290D6-D2E9-45C9-AA77-E486F177A737 Page 6 of 7 3. A Regional Water Quality Control Board order prohibiting new wastewater connections in the region. 4. The applicant has failed to agree to reasonable terms and conditions relating to the provision of wastewater service generally applicable to development projects seeking water service from the City, including but not limited to, the requirements of local, state, or federal laws and regulations or payment of applicable fees; and WHEREAS, the policy and procedures regarding the prioritization for provision of wastewater services to proposed developments that include housing affordable to lower income households shall be reviewed at least once every five years and consider: 1) regulations and restrictions adopted by the City relating to water shortage contingencies, 2) water supply availability as determined by the City pursuant to its Urban Water Management Plan, 3) planning or engineering documents on available treatment capacity at the Hyperion Treatment Plant, and 4) plans, documents, and information relied upon by the City that provide a reasonable basis for making service determinations; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The above recitals are true and correct findings of the Santa Monica City Council. SECTION 2. The City shall continue to devote its best efforts to plan for and prioritize water and sewer services to proposed developments that include DocuSign Envelope ID: 02C290D6-D2E9-45C9-AA77-E486F177A737 Page 7 of 7 housing affordable to lower income households, as set forth in the recitals, above. SECTION 3. Development projects that include housing affordable to lower income households shall not be denied approval of an application for service, nor shall conditions be imposed thereon or services reduced which are applied for, unless the City makes specific written findings, as set forth in the recitals, above. SECTION 4. The City shall not discriminate in any manner when processing and considering requests for services by developments that include housing affordable to lower income households. SECTION 5. The City Clerk shall certify to the adoption of this Resolution, and thenceforth the same shall be in full force and effect. APPROVED AS TO FORM: _______________________ JOSEPH LAWRENCE INTERIM CITY ATTORNEY DocuSign Envelope ID: 02C290D6-D2E9-45C9-AA77-E486F177A737 Adopted and approved this 12th day of October 2021. __________________________ Sue Himmelrich, Mayor I, Denise Anderson-Warren, City Clerk of the City of Santa Monica, do hereby certify that Resolution No. 11367 (CCS) was duly adopted at a meeting of the Santa Monica City Council held on the 12th day of October 2021, by the following vote: AYES: Councilmembers Brock, Davis, De la Torre, Parra, Mayor Pro Tem McCowan, Mayor Himmelrich NOES: None ABSENT: Councilmember Negrete ATTEST: _____________________________________ Denise Anderson-Warren, City Clerk DocuSign Envelope ID: 02C290D6-D2E9-45C9-AA77-E486F177A737