NOVEMBER 15, 2022
DEVELOPMENT
IMPACT FEES &
TRAFFIC FEE
ANALYSIS
DEVELOPMENT
IMPACT FEE
ANNUAL REPORT
3 • California Government Code 66006 specifies that local agencies must prepare annual reports of Development Impact Fees (DIF) within 180 days of the close of the fiscal year.
• The report must describe the fee, the amount of fees collected, interest earned if any, and identifications of any expenditures from those funds.
• California Government Code 66006 also specifies that the report must be reviewed the by agency’s legislative body at a regularly scheduled meeting not less than 15 days following release to the public. The DIF was noticed to the public on November 1, 2022.
State Requirements
4 Types of Development Impact Fees
• Park Development Impact Fees – developer fees that provide funding for additional or improved park and/or recreational improvements.
• Drainage Impact Fees – developer fees that provide funding for the additional construction and maintenance of the City drainage system.
• Traffic Impact Fees – developer fees that provide funding for additional or improved traffic signal, operation, and infrastructure improvements.
• Fire System Development Fees – developer fees that provide funding for additional fire protection facilities, equipment and paramedic support.
Description
Park
Development
Fees
Drainage
Fees
Traffic Impact
Fees
Fire System
Development
Fees
Beginning Fund Balance 4,651,456 2,096,392 5,490,214 651,541 Revenue Total 1,178,149 291,679 294,773 15,857
Expense Total 2,214,169 145,850 127,222 0
Ending Fund Balance 3,615,436 2,242,221 5,657,766 635,685 (Preliminary unaudited actuals)
TRAFFIC IMPACT FEE
ANNUAL REVIEW
7 •Ad Hoc Committee met on October 20, 2022
•TIF Analysis included:
o TIF range between $176 and $476 per ADT
o Recently Completed Projects
o Consideration of Active Transportation Projects
o Traffic Signal Synchronization Projects
o TIF Fund Balance
•Revised calculation of $232 per ADT based on revised list of CIP projects and inclusion of Active Transportation projects.
TIF AD HOC COMMITTEE REVIEW
8 •Beginning fund balance July 1, 2021 - $5,490,214
•Revenues - 294,773
•Expenditures - (127,222)
•Fund Balance as of June 30, 2022 - $5,657,766
•Capital Projects Current and five-year CIP - $3,255,657
TRAFFIC IMPACT FEE FUND BALANCE
9 •Adopt proposed resolution which includes:
o Continue traffic impact fee of $235 per ADT with the inclusion of Active Transportation projects;
o Continue allocation of up to 10% of traffic impact fees towards traffic signal synchronization projects;
o Continue 5% reduction in automobile trips as result of ATP implementation and additional 5% reduction in automobile trips for developments proposing to implement active transportation improvements beyond typical development requirements.
TIF AD HOC COMMITTEE
RECOMMENDATION
10 Questions ?
Appeal Hearing for
Planning Application 21-07 & Zoning
Application 19-50 (ZA-17-16 A1)
1661 Superior Avenue, Suite C & D
and 1645 Superior Avenue
City Council Meeting
November 15, 2022
2 VICINITY MAP
3 EXISTING PROJECT SITE PHOTOS
4 ZONING MAP
5 PRIOR LAND USE APPROVALS – MCUP
Minor Conditional Use Permit (MCUP) ZA-17-16
• On June 22, 2017, the Zoning Administrator approved MCUP ZA-17-16, allowing a deviation from shared parking requirements for a restaurant (Superior Pie & Liquor) with more than 300 square feet of public seating area, including a 245-square-foot outdoor patio
• Approval was based on offset hours of operation of the restaurant with the other businesses on-site at that time
• The previously approved hours of operation for the restaurant use are:
• Monday through Friday, 8 AM to 12 PM and 4 PM to 11 PM (restaurant closed between 12 PM and 4 PM, Monday through Friday); and • Saturday and Sunday, 8 AM to 11 PM
• Trenta Pizza and Cucina took over the entitlements from Superior Pie & Liquor and began operating in 2019.
6 PRIOR LAND USE APPROVALS – TUP
Temporary Use Permit (TUP) for Outdoor Dining
• On November 30, 2020, during the COVID-19 pandemic, a Temporary Use Permit (TUP) for outdoor dining was approved for the current restaurant, in accordance with Ordinance No. 2020-15
• TUP approved the use of onsite parking spaces to accommodate an additional 842 square feet of outdoor patio seating area • The TUP will expire on December 31, 2023 as extended by the City Council at their November 1, 2022 meeting
• The outdoor seating area is improved with artificial turf beneath the seating, portable planters and empty wine barrels separating the seating area from the drive aisle, and portable propane heaters 7 CUP APPLICATION PA-22-07 & MCUP
APPLICATION ZA-19-50 (ZA-17-16 A1)
The applicant originally requested a Conditional Use Permit and Minor Conditional Use Permit to:
1. Allow the restaurant to occupy Suite C (in addition to the existing restaurant space located in Suite D)
2. Permanently allow the use of the temporary outdoor seating area (located on a portion of the site’s parking area) approved by TUP
3. Modify previously approved hours of operation to:
• Sunday through Thursday 5PM to 9PM
• Friday and Saturday 5PM to 10PM
• Saturday and Sunday 11:30AM to 2:30PM (use of 245-square-foot patio only)
4. Allow the use of offsite valet parking at 1645 Superior (Beach Cities Carwash) to meet parking requirements
8 PROJECT PLANS – PROJECT SITE PLAN
9 PLANNING COMMISSION APPROVAL
• September 12, 2022 Planning Commission meeting
• During the hearing, the applicant requested to add weekday lunchtime hours (from 11:30 AM to 2:30 PM, Monday through Friday):
• Sunday – Thursday: 11:30 AM to 2:30 PM & 5 PM to 9 PM • Friday & Saturday: 11:30 AM to 2:30 PM & 5 PM to 10 PM • Planning Commission approved the project on a 6-1 vote, subject to conditions
• Added a condition of approval to allow the requested lunchtime hours, conditioned upon the submittal and approval of a Parking Management Plan and limiting the outdoor dining area to the originally approved 245- square-foot patio (specifically excluding use of the larger patio area) during those lunchtime hours
10 APPEAL OF PLANNING COMMISSION APPROVAL
• On September 19, 2022 an appeal of the Planning Commission’s approval of the project was filed by a neighboring resident
• In summary, the application for appeal noted the following topics/areas of concern:
• Parking Shortage;
• Safety Concerns;
• Community/Resident Objection;
• Need for a Traffic Study; and
• Evening Noise Impacts at the Car Wash Site
11 PARKING
12 VALET & TRAFFIC SAFETY
• The Transportation Division has confirmed that the proposed modifications to the existing restaurant operations are anticipated to perform sufficiently, without interruptions to the City’s local circulation system and does not necessitate a Traffic Study.
• Pursuant to the Costa Mesa Municipal Code, a traffic study is required when a project generates more than 100 peak daily trips; the proposed project would generate 24 peak daily trips.
• In addition, the Building, Fire, and Police Departments have reviewed the proposal and no safety issues are anticipated.
13 NOISE
• Condition No. 16 requires the valet operator to minimize potential noise generating sources, including valet attendants keeping their voices low, keeping car radios off, and not revving engines during operations. • In addition the use is required to comply with the City’s Noise Ordinance • Furthermore, the approval for the adjacent residential projects included a standard condition of approval requiring a “Notice to Buyers” • The purpose of the notice is to disclose that the project is located within an area designated as Light Industry in the City’s General Plan and is subject to existing and potential annoyances or inconveniences associated with industrial land uses 14 CUP REQUIRED FINDINGS
• The proposed use, as conditioned, is substantially compatible with developments in the same general area and would not be materially detrimental to other properties within the area.
• The proposed use and improvements will not be materially detrimental to the health, safety and general welfare of the public or otherwise injurious to property or improvements within the immediate neighborhood. • Granting the conditional use permit will not allow a use, density or intensity, which is not in accordance with the general plan designation and any applicable specific plan for the property.
15 REQUIRED FINDINGS (cont.)
• Site will be in conformance with Code required parking requirements for the restaurant and would maintain a surplus of customer parking with the implementation of offsite valet parking
• Valet parking plan has been reviewed by the City’s Transportation Division and would be implemented by a professional valet service operator • The existing restaurant is a complementary use to the area and does not generate noise or parking impacts unusual for an industrially-zoned property
• Outdoor seating operations do not adversely effect the surrounding uses 16 Staff recommends the City Council uphold the Planning Commission’s decision and:
• Find that the project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) per CEQA Guidelines Section 15301 (Class 1), Existing Facilities. • Approve Planning Application 21-07 and Zoning Application 19- 50 (ZA-17-16 A1), subject to conditions of approval
RECOMMENDATION
Appeal Hearing for
Planning Application 21-07 & Zoning
Application 19-50 (ZA-17-16 A1)
1661 Superior Avenue, Suite C & D
and 1645 Superior Avenue
City Council Meeting
November 15, 2022
City Council Meeting
November 15, 2022
2021-2029 Sixth Cycle Housing Element
& ALUC Determination Overrule
2 HOUSING ELEMENT BACKGROUND
• One of seven required elements of the General Plan
• Analysis of the City’s demographics, economic, and
housing characteristics, identifies community housing
needs, and establishes objectives, policies and programs to meet those needs
• Community Outreach
• Must be adopted by City Council and Certified by
California State Department of Housing and Community
Development (HCD)
3 REGIONAL HOUSING NEEDS ASSESSMENT (RHNA)
Plan and zone to facilitate housing production that meets the City’s RHNA Allocation
Income Category
% of Area
Median
Income (AMI)
Income Range
Min.
–
Max.
RHNA
Allocation
Very Low Income
0 -
50% AMI
--
$64,050
2,919 units
Low Income
51 -
80% AMI
$64,051
$102,450
1,794 units
Moderate Income
81 -
120% AMI
$102,451
$123,600
2,088 units
Above Moderate
Income
%120% AMI
$123,601
--
4,959 units
Total RHNA
11,760 units
4 •
November 2020
Townhall
Meeting
•
February 2021 District Specific Virtual Meetings
•
April 2021 City Council and Planning Commission Joint Session •
August 2021 Public Review Draft Housing Element
•
September 2021
Townhall
Meeting, Second City Council and
Planning Commission Joint Session
•
October 2021 Public Review of Draft Initial Study/Mitigated Negative Declaration
TIMELINE
5 •
October 2021
-
Housing Ad Hoc Committee
•
October
-
December 2021 HCD Review
•
November
-
December 2021 Three Planning Commission Hearings
•
December 2021 HCD Comment Letter
•
January 2022
City Council Ad Hoc Committee Study Session
City Council Public Hearing (Preliminary Review)
TIMELINE
6 • February 2022
City Council adopts the Housing Element and associated environmental determination
Adopted Housing Element submitted to HCD for certification • April 2022 - HCD Comment Letter advising further revisions in order to obtain Housing Element certification
• April – November 2022 – Continued discussions with HCD staff as to the revisions necessary to achieve certification
• November 2022 – Council Hearing to Re-Adopt, as revised • November 2022 – Re-submit to State HCD for certification • January 2023 – State certification
TIME LINE
7 HOUSING ELEMENT REVISION
• City Council approved and adopted the Housing Element (General Plan Amendment 21-01) and the associated
Initial Study/Mitigated Negative Declaration and
Mitigation Monitoring and Reporting Program (MMRP) on
February 1, 2022
• The staff report acknowledges comment letter from
Airport Land Use Commission and the possibility of
revisions that may be required in the Housing Element
after State’s review for certification
8 • Additional supporting data, analysis, and clarifications regarding Housing Needs, Resources and Constraints, and new and modified Housing Programs
No modifications to the City’s fundamental approach and the element continues to meet the City’s RHNA obligation
• Additional analysis and expanded programs related to Extremely Low Income Households and Affirmatively Furthering Fair Housing (AFFH)
HOUSING ELEMENT REVISIONS
9 • Additional information regarding development trends and housing opportunity sites and new programs pertaining to small and large housing sites
• Program 3Q: Lot Consolidation – Streamline processes and establish incentives for lot consolidation for smaller housing sites • Program 3R: Development of Large Sites – evaluate development status of large housing opportunity sites; if needed identify additional housing sites
HOUSING ELEMENT REVISIONS
10 • Reduce projected number for ADU construction and expand ADU Programs
oProgram 3E: Promote the Development of ADUs
oProgram 3M: ADU and JADU Monitoring Program
• Additional analysis and programs regarding the City’s Code required “findings” for residential projects
oProgram 3S: Review and Revise Findings
• Additional information regarding Emergency Shelters and programs regarding Permanent Supportive Housing
HOUSING ELEMENT REVISIONS
11 • Additional information and programs regarding Reasonable Accommodation procedures, and definition of Single
Housekeeping Unit, and Group Home regulations
oProgram 2N: Reasonable Accommodation
oProgram 2O: Definition of Single Housekeeping Unit
oProgram 2P: Group Homes
HOUSING ELEMENT REVISIONS
12 • Modifications to Housing Element Programs 3B (Fairview Development Center), 3C and 3D related to required rezoning, and Program 3G (City-wide vote requirement)
oProgram 3B: Fairview Development Center (FDC)
oProgram 3C (Update the North Costa Mesa Specific Plan) and Program 3D (Update the City’s Urban Plans and Overlays)
oProgram 3G: Address City-wide Vote Requirement in Relation to Housing Element Compliance – includes specific milestones and timeline, revised to add specific course of action in the event there is a shortfall of sites
HOUSING ELEMENT REVISIONS
13 OVERRULE ALUC’S DETERMINATION
• April 5, 2022 - City Council made the findings that the proposed Housing Element is consistent with the
proposed AELUP pursuant to Public Utilities Code
Section 21676
• Response to ALUC’s noted issues:
oNoise - Noise Element adequately addresses the
interface of potential residential development and
airport noise impacts
oSafety - Housing Element does not propose changes
to the height standards that were approved for North
Costa Mesa Specific Plan
14 • Find that no further action is required to comply with CEQA • Approve the Resolution to Overrule the Orange County Airport Land Use Commission’s March 17, 2022 Determination
• Approve the Resolution to approve the City of Costa Mesa 2021-2029 (Sixth Cycle) Housing Element (General Plan Amendment 21-01), as revised
• Direct the City Manager or designee to submit the adopted Housing Element to the State for certification and authorize the City Manager or designee to make minor revisions to the adopted Housing Element as necessary to obtain State certification
RECOMMENDATIONS
City Council Meeting
November 15, 2022
2021
-
2029 Sixth Cycle Housing Element
& ALUC Determination Overrule
RENTAL
ASSISTANCE
PROGRAM
NOVEMBER 15, 2022
City Council Meeting
BACKGROUND:
• CDBG-CV Rental Assistance Program (October 2020 and June 2021) Council allocated a total of $904,633 in CDBG-CV funds to Mercy House, SPIN, and Families Forward to operate eviction prevention programs for Costa Mesa households.
• Assisted over 275 people total
• Of these, 72 people were assisted by Mercy House
• HOME TBRA PROGRAM (November 2020 and November 2021)
Council allocated a total of $300,000 in HOME funds to Families Forward to operate a long-term rental assistance program for Costa Mesa households with minor children.
• Assisted 10 families
• Remaining funds to be expended by November 2023
• ARPA Rental Assistance Program (June 2021)
Council appropriated $500,000 in ARPA funds to create an augmented rental assistance program for Costa Mesa households.
PROGRAM HIGHLIGHTS:
Administration
• Marketing & Outreach
• Two (2) Bilingual Staff
• Application Workshops
Accomplishments
• Projecting to assist 150
people (approx. 50 HH)
• Monthly, Quarterly & Annual
performance reports
• Monthly update meetings
with City Staff
Assistance
• Rent, arrears & deposits
• Client pays no more than
30% of AGI
• 3 months minimum
• 6 months maximum
Eligibility
• Individuals & Families
• Homeless & At-Risk
• 50% AMI or less
Staff recommends the City Council:
1. Approve proposed Amendment No. 3 to the Subrecipient Agreement with Mercy House Living Centers increasing the compensation by $500,000 for a total Not-To-Exceed amount of an additional $500,000 for program administration of the City’s American Rescue Plan Act (ARPA) Rental Assistance Program for lower-income households.
2. Authorize the City Manager and City Clerk to execute all agreements and any amendments to the agreements.
RECOMMENDATIONS:
QUESTIONS?
THE BUNGALOWS
Affordable Housing Project
November 15, 2022
BACKGROUND:
Families Forward is a local non-profit
service provider established in 1984.
Families Forward opened an 8-unit
affordable housing project on 21st Street
in Costa Mesa in December 2019.
Families Forward later acquired 2039
Pomona Ave in March 2021 for $2.4M in
private donor funds.
Families Forward submitted to the City a
request for funding for the Bungalows in
November 2022
NEW PROJECT HIGHLIGHTS:
8 units of permanent affordable housing
for up to 36 people
• 4 - 1BR, 3 - 2BR, 1 - 3BR
• 6 Rehab & 2 New ADU’s (RHNA
eligible)
Households w/ children earning at or
below 50% AMI are eligible to apply
Costa Mesa “Live, Work, School”
preference
Units will be affordable for a minimum of
20 years
Achieves Council Goal to “Diversify,
Stabilize and Increase Housing to
Reflect Community Needs”
PROJECT AMENITIES:
Case Management
Wrap-Around Services
Food Pantry
Community Room
Open Space
On-Site Laundry Facility
FUNDING SUMMARY:
Uses
Site Acquisition $2.6M
Construction $1.8M
Fees & Permits $209k
Total Dev Cost $4.6M
Sources
Donations $2.7M
Private Loan $900k
ARPA Grant $975k
Total Dev Cost $4.6M
RECOMMENDATIONS:
Staff recommends the City Council:
1. Approve the appropriation and allocation of $975,000 in American Rescue Plan Act (ARPA) funds, or any other viable source of funds, to Families Forward for the development of The Bungalows Project, an affordable housing project to serve an estimated 36 individuals, contingent upon the successful completion of a financial feasibility analysis by the City’s third-party underwriting consultant, Keyser Marston Associates.
2. Authorize the City Manager or their designee to execute the Funding Agreement and all associated documents, as needed, to bring the project to fruition.
QUESTIONS?
MOTEL 6
AFFORDABLE HOUSING PROJECT
NOVEMBER 15, 2022
BACKGROUND
November 16, 2021
City Council approved an award of $3.5M in
ARPA funds to approved Homekey Projects
April 25, 2022
Motel 6 Project awarded $10,675,000 in State of
California Homekey Program funds
July 19, 2022
City Council approved the award of $1.5M in
HOME funds to the Motel 6 Project to further
assist with financing.
October 27, 2022
Developer received updated construction quote
at +$2M due to inflation and supply chain costs
PROJECT HIGHLIGHTS
Permanent Affordable Housing
• 88 Total Units
o 30 Veterans
o 10 Individuals
o 47 Seniors (Costa Mesa Preference)
o 1 Manager’s Unit
Project Amenities
• Community Garden
• Dog Park
• Community Room
• Demonstration Kitchen
• Fitness Room
• TV Lounge & Computer Lab
Council Goal: Diversify, Stabilize and Increase
Housing to Reflect Community Needs
RHNA: All 87 units count toward the City’s RHNA
Allocation of 11,760 new housing units
LOCAL FUNDING
SOURCE OF FUNDS CURRENT
AMOUNT
REVISED
AMOUNT
City of
Costa Mesa $5,000,000 $5,850,000
County of
Orange $4,500,000 $5,350,000
TOTAL $9,500,000 $11,200,000
Low/Moderate Income Housing Asset Fund (LMIHAF)
balance as of 12/31/21 was $3,715,185.
• LMIHAF funds can only be used develop affordable
housing
RECOMMENDATIONS
Staff recommends the City Council:
1. Approve an appropriation and allocation of
$850,000 in Low/Moderate Income Housing
Asset Funds to CM Mercy House CHDO LLC
for conversion of the Motel 6 Housing Project.
2. Authorize the City Manager or their
designee to execute the Funding Agreement
and all associated documents, as needed, to
bring the project to fruition.
QUESTIONS?