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2016-43RESOLUTION NO. PC 2016 -43 A RESOLUTION OF THE CITY OF ENCINITAS PLANNING COMMISSION RECOMMENDING APPROVAL OF CITY COUNCIL DRAFT ORDINANCE 2016 -07 AMENDING CHAPTER 30.16.020.0 (DENSITY BONUS REGULATIONS) OF TITLE 30 (ZONING) OF THE ENCINITAS MUNICIPAL CODE (CASE NO. 16 -145 POD; CITY -WIDE) WHEREAS, California Government Code Section 65915(a) requires that all cities adopt an ordinance that specifies how compliance with State Density Bonus Law will be implemented; and, WHEREAS, the City Council has requested that the Planning Commission consider amendments to the City's Density Bonus Ordinance as set forth in draft Ordinance 2016 -07 included herein as Exhibit "A "; and, WHEREAS, the Planning Commission conducted a duly noticed public hearing on July 21, 2016. NOW, THEREFORE, BE IT RESOLVED that the Encinitas Planning Commission hereby RECOMMENDS APPROVAL of City Council draft Ordinance 2016 -07; based on the following Environmental Determination: Section 1. California Environmental Quality Act Determination The Planning Commission, in its independent judgment, finds that the proposed amendments to the Encinitas Municipal Code are exempt from environmental review pursuant to General Rule, Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines since there would be no possibility of a significant effect on the environment. The ordinance being considered specifies how the City will comply with and implement State density bonus law, and adoption is required pursuant to Government Code §65915(a). The bonuses, incentives, and waivers permitted by the ordinance are required by State law, and this ordinance does not permit any bonuses, incentives, or waivers other than those required by State law. Section 2. Findings. The Planning Commission finds that this Ordinance is necessary to comply with State law. PASSED AND ADOPTED this 21 st day of, July, 2016 by the following vote, to wit: AYES: O'Grady, Drakos, Boerner Horvath, and Apuzzo NOES: None ABSTAIN: None ABSENT: Brandenburg Vichael Glenn O'Grady, C1r EXHIBIT "A" DRAFT ORDINANCE NO. 2016-07 AN ORDINANCE OF THE CITY OF ENCINITAS AMENDING CHAPTER 30.16.020.0 (DENSITY BONUS REGULATIONS) OF THE ENCINITAS MUNICIPAL CODE SECTION ONE. The City Council of the City of Encinitas does hereby finds and declares as follows: WHEREAS, California Government Code Section 65915(a) requires that all cities adopt an ordinance that specifies how compliance with State Density Bonus Law will be implemented; and, WHEREAS, the City finds that the proposed amendments to the City's Municipal Code are exempt from environmental review pursuant to General Rule, Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines since there would be no possibility of a significant effect on the environment. The ordinance being considered specifies how the City will comply with and implement State density bonus law, and adoption is required pursuant to Government Code §65915(a). The bonuses, incentives, and waivers permitted by the ordinance are required by State law, and this ordinance does not permit any bonuses, incentives, or waivers other than those required by State law. WHEREAS, a Public Notice of Availability of proposed Local Coastal Plan Amendments (LCPA) was issued which opened a six -week public review period that ran from July 8, 2016 to August 19, 2016; this public notice of availability replaced the original notice of availability, published on July 1, 2016, to allow for required mailings; and WHEREAS, the Planning Commission conducted a Public Hearing on July 21, 2016 for the purpose of considering amendments to Section 30.16.020.C, Density Bonus Regulations, of the Encinitas Municipal Code and considered public testimony and made a recommendation to the City Council to adopt the proposed amendments; and, WHEREAS, the City Council conducted a Public Hearing on , 2016 for the purpose of considering amendments to Section 30.16.020.C, Density Bonus Regulations, of the Encinitas Municipal Code; and, WHEREAS, the City Council has duly considered all evidence, including testimony and the evaluation and recommendations by staff, presented at said hearing; and, WHEREAS, notices of said public hearings were made at the time and in the manner required by law; and, WHEREAS, the City Council finds that this Ordinance is intended to be carried out in a manner in full conformance with the California Coastal Act of 1976 and the Planning and Building Director is hereby authorized to submit this Ordinance as part of the Local Coastal Program Amendment to the California Coastal Commission for their review and adoption, and, Draft Ordinance 2016 -07; 16 -145 POD 1 NOW, THEREFORE, the City Council of the City of Encinitas, California, hereby ordains as follows: SECTION TWO. The following provisions of Chapter 30.16.020.0 of the Encinitas Municipal [Zoning] Code shall be amended to read as follows. Section 30.16.020.C.4 Application Requirements. a. Any applicant requesting a density bonus and any incentive(s), waiver(s), or parking reductions provided by State Density Bonus Law shall submit a Density Bonus Report as described below concurrently with the filing of the planning application for the first discretionary permit required for the housing development. The requests contained in the Density Bonus Report shall be processed concurrently with the planning application. b. The Density Bonus Report shall include the following minimum information: Requested Density Bonus. (A) Summary table showing the maximum number of dwelling units permitted by the zoning and general plan excluding any density bonus units, proposed affordable units by income level, proposed bonus percentage, number of density bonus units proposed, total number of dwelling units proposed on the site, and resulting density in units per acre. (B) A tentative map and /or preliminary site plan, drawn to scale, showing the number and location of all proposed units, designating the location of proposed affordable units and density bonus units. (C) The zoning and general plan designations and assessor's parcel number(s) of the housing development site. (D) Calculation of the maximum number of dwelling units permitted by the City's zoning regulations and general plan for the housing development, excluding any density bonus units. (E) A description of all dwelling units existing on the site in the five -year period preceding the date of submittal of the application and identification of any units rented in the five -year period. If dwelling units on the site are currently rented, income and household size of all residents of currently occupied units. If any dwelling units on the site were rented in the five -year period but are not currently rented, the income and household size of residents occupying dwelling units when the site contained the maximum number of dwelling units, if known. (F) Description of any recorded covenant, ordinance, or law applicable to the site that restricted rents to levels affordable to very low or lower income households in the five -year period preceding the date of submittal of the application. (G) If a density bonus is requested for a land donation, the location of the land to be dedicated, proof of site control, and information that each of the requirements included in Government Code Section 65915(g) can be met. Draft Ordinance 2016 -07; 16 -145 POD 2 Requested Incentive(s). In the event an application proposes incentives pursuant to State Density Bonus Law, the Density Bonus Report shall include the following minimum information for each incentive requested, shown on a site plan if appropriate: (A) The City's usual development standard and the requested development standard or regulatory incentive. (B) Except where mixed -use zoning is proposed as an incentive, in order to ensure that the granted incentives have value to the applicant, provide information that any requested incentive will reduce the cost of the housing development. (C) If approval of mixed use zoning is proposed, provide information that nonresidential land uses will reduce the cost of the housing development, that the nonresidential land uses are compatible with the housing development and the existing or planned development in the area where the proposed housing development will be located, and that mixed use zoning will provide for affordable rents or affordable sales prices. iii. Requested Waiver(s). In the event an application proposes waivers of development standards pursuant to State Density Bonus Law, the Density Bonus Report shall include the following minimum information for each waiver requested on each lot, shown on a site plan if appropriate: (A) The City's usual development standard and the requested development standard. (B) Information that the development standards for which a waiver is requested will have the effect of physically precluding the construction of a development at the densities or with the concessions or incentives permitted by Government Code Section 65915. iv. Requested Parking Reduction. In the event an application proposes a parking reduction pursuant to Government Code Section 65915(p), a table showing parking required by the zoning regulations and parking proposed under Section 65915(p). v. Child Care Facility. If a density bonus or incentive is requested for a child care facility, information that all of the requirements included in Government Code Section 65915(h) can be met. vi. Condominium Conversion. If a density bonus or incentive is requested for a condominium conversion, information that all of the requirements included in Government Code Section 65915.5 can be met. vii. Fee. Payment of any fee in an amount set by resolution of the City Council for staff time necessary to determine compliance of the Density Bonus Plan with State Density Bonus Law. Section 30.16.020.C.5 Density Bonus. a. In determining the total number of units to be granted, each component of any density calculation, including base density and bonus density, resulting in fractional units shall be separately rounded up to the next whole number. b. When calculating the number of affordable units needed for a given density bonus, any fractions of affordable dwelling units shall be rounded up to the next whole number. Draft Ordinance 2016 -07; 16 -145 POD 3 c. Each housing development is entitled to only one density bonus. If a housing development qualifies for a density bonus under more than one income category or additionally as senior housing, the applicant shall select the category under which the density bonus is granted. Density bonuses from more than one category may not be combined. d. The density bonus units shall not be included in determining the number of affordable units required to qualify a housing development for a density bonus pursuant to State Density Bonus Law. e. The applicant may elect to accept a lesser percentage of density bonus than the housing development is entitled to, but no reduction will be permitted in the percentages of required affordable units contained in Government Code Sections 65915(b), (c), and (f). Regardless of the number of affordable units, no housing development shall be entitled to a density bonus of more than 35 %. Section 30.16.020.C.8 Review Procedures. All requests for density bonus, incentives, parking reductions, or waivers shall be considered and acted upon by the approval body with authority to approve the housing development, with right of appeal to the City Council. a. Eligibility for Bonus, Incentive(s), Parking Reduction, and /or Waiver(s). To ensure that the application conforms with the provisions of State Density Bonus Law and the Coastal Act, the staff report presented to the decision - making body shall state whether the application conforms to the following requirements of state law:: i. The housing development provides the affordable units or senior housing required by State Density Bonus Law to be eligible for the density bonus and any incentives, parking reduction, or waivers requested, including the replacement of units rented or formerly rented to low and very low income households. ii. Any requested incentive will reduce the cost of the housing development; except that, if a mixed -use development is requested, the application must instead meet all of the requirements of Government Code Section 65915(k)(2). iii. The development standards for which a waiver is requested would have the effect of physically precluding the construction of a development at the densities or with the concessions or incentives permitted by Government Code Section 65915. iv. If the housing development is in the coastal zone, the requested density bonus and any requested incentive(s) or waiver(s) are consistent with all applicable requirements of the certified Encinitas Local Coastal Program, with the exception of density. v. If the density bonus is based all or in part on donation of land, all of the requirements included in Government Code Section 65915(g) have been met. vi. If the density bonus or incentive is based all or in part on the inclusion of a child care facility, all of the requirements included in Government Code Section 65915(h) have been met. vii. If the density bonus or incentive is based all or in part on the inclusion of affordable units as part of a condominium conversion, all of the requirements included in Government Code Section 65915.5 have been met. Draft Ordinance 2016 -07; 16 -145 POD 4 b. The decision - making body shall grant the concession or incentive requested by the applicant unless it makes a written finding, based upon substantial evidence of any of the following: i. The proposed incentive is not required to provide for affordable housing costs, as defined in Section 50052.5 of the Health and Safety code, or for affordable rents, as defined in Section 50053 of the Health and Safety Code; or, ii. The proposed incentive would be contrary to state or federal law; or iii. The proposed incentive would have a specific, adverse impact upon public health or safety or the physical environment or on any real property that is listed in the California Register of Historic Resources, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the housing development unaffordable to low and moderate income households. For the purpose of this subsection, "specific adverse impact" means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified, written public health or safety standards, policies, or conditions as they existed on the date that the application for the housing development was deemed complete. c. The decision - making body shall grant the waiver of development standards requested by the applicant unless it makes a written finding, based upon substantial evidence, of any of the following: i. The proposed waiver would be contrary to state or federal law; or ii. The proposed waiver would have an adverse impact on any real property listed in the California Register of Historic Resources; or iii. The proposed waiver would have a specific, adverse impact upon public health or safety or the physical environment, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the housing development unaffordable to low and moderate income households. For the purpose of this subsection, "specific adverse impact" means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified, written public health or safety standards, policies, or conditions as they existed on the date that the application for the housing development was deemed complete. d. If any density bonus, incentive, parking reduction, or waiver is approved pursuant to this chapter, the applicant shall enter into an Affordable Housing Agreement or Senior Housing Agreement with the City pursuant to subsection C.9. SECTION THREE: Severability. If any section, subsection, sentence, clause, phrase or word of this Ordinance is for any reason held to be invalid by a 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 and adopted this Ordinance, and each and all provisions hereof, irrespective of the fact that one or more provisions may be declared invalid. SECTION FOUR: Public Notice and Effective Date. The City Clerk is directed to prepare and have published a summary of the ordinance no less than five days prior to consideration of its adoption, and again within 15 days following adoption, indicating the votes cast. For property located within the Coastal Zone, this Ordinance will become effective following certification by the California Coastal Commission as being consistent with the Local Coastal Program for the City of Encinitas and California Coastal Act For property located outside the Coastal Zone, this Ordinance shall take effect 30 days after its adoption by the City Council. Draft Ordinance 2016 -07; 16 -145 POD 5 SECTION FIVE: This Ordinance was introduced on 2016. PASSED AND ADOPTED this _day of , 2016 by the following vote to wit: AYES: NAYS: ABSTAIN: ABSENT: Kristin Gaspar, Mayor, City of Encinitas ATTESTATION AND CERTIFICATION: I hereby certify that this is a true and correct copy of Ordinance No. 2016 -_ which has been published pursuant to law. Kathy Hollywood, City Clerk Draft Ordinance 2016 -07; 16 -145 POD 6