Cotati City Council
Agenda Staff Report
Item type: PUBLIC HEARINGS (ACTION)
To: City Council
Subject: Introduction and first reading of an ordinance that removes the use permit requirement for multifamily housing projects in the NM and NU residential zoning districts and revises the administrative procedures for appeals by the City Council.
Date: November 22, 2022
Written by: Jon-Paul Harries, Senior Planner
Recommendation
It is recommended that the City Council introduce and conduct the first reading of an ordinance amending Section 17.22.020 (Allowable Land Uses) and Chapter 17.84 (Appeals) of the Cotati Municipal Code to remove the use permit requirement for proposed multifamily projects located in NM (Neighborhood, Medium Density) and NU (Neighborhood, Urban) residential zoning districts and revise the administrative procedures for appeals by the City Council.
Background
On April 26, 2022, Community Development Department staff presented a draft ordinance for City Council consideration that included a suite of proposed changes to the city’s Land Use Code that would implement several General Plan and Housing Element policies and programs intended to remove barriers to multifamily housing development (See Exhibit A).
One such program, Housing Element Program 2-6, directed the city to remove the use permit requirement for proposed multifamily housing projects located in the NU (Neighborhood, Urban) zoning district. As a separate component of the draft ordinance, staff proposed that the city also remove the use permit requirement for multifamily housing in the NM (Neighborhood, Medium Density) zoning district. After significant discussion, the City Council decided to adopt several components of the draft ordinance, but chose not to remove the use permit requirement for multifamily projects in the NM and NU zoning districts. The primary concern noted by the councilmembers was that certain multifamily housing projects could have a material effect on the quality of life in Cotati, even if the project was consistent with the zoning, and the council wanted to ensure there would be opportunities for adequate public input and potentially City Council review of highly controversial projects.
On May 24, 2022, the City Council held a discussion to explore different options to address their concerns noted above. Staff presented three options to consider: 1) Do not implement Housing Element Program 2-6; 2) elevate all multifamily design review decisions to the City Council; and 3) revise the appeal process for City Council members, for which staff provided draft code language for consideration (See Exhibit B). After public comment and council discussion, the council directed staff to return with an ordinance that would revise the City Council appeal process, but with greater clarification on the process for a councilmember to request an appeal and how the item will be placed on the City Council agenda for discussion in conformance with the Brown Act.
The council further directed staff to bring back for consideration the proposal to remove the use permit requirement in both the NM and NU zoning districts.
Analysis/Discussion
Elimination of Use Permit requirement for multifamily projects in NM and NU zones As shown in Exhibit 1 of the proposed ordinance, the ordinance would eliminate the use permit requirement for all multifamily housing projects located in the NM and NU zoning districts.
Eliminating the use permit requirement for multifamily housing developments is a permit streamlining measure that contributes to implementation of General Plan Action LU 4a and Housing Element Programs 2-6 and 3-9:
• Action LU 4a: Review and update the City’s development permitting process to provide a streamlined and straightforward process. At a minimum, the review may consider:
o Methods to streamline and simplify the process, including the process for review by City staff as well as various committees and commissions. o Opportunities to reduce redundancies and delays.
• Program 2-6: Barrier Removals for Multi-Family Development o The Land Use Code will be amended to remove two potential barriers to the provision of multi-family housing. One amendment will be to remove the Conditional Use Permit requirement for multi-family development of five or more units in the NU Zone, and the second is to reduce the parking requirements for studio, one-, two-, and three-bedroom units (currently 2.25 spaces) to one space for studio and one-bedroom units and no more than two spaces for two- and three-bedroom units.
• Program 3-9: Monitor Use Permit Requirements for Affordable Housing o Monitor the requirement for a Use Permit for multi-family projects larger than 4 units in the NU Zone to ensure that affordable housing projects are being accommodated. If the requirement for a Use Permit is shown to be an impediment to the development of affordable housing projects in the NU Zone, review the feasibility of allowing multifamily projects larger than 4 units in the NU Zone as a Permitted Use.Housing Element Programs 2-6 and 3-9 specifically direct the city to consider eliminating the use permit requirement in the NU zoning districts, and the proposed ordinance would fulfill this direction. Additionally, the proposed ordinance would remove the use permit requirement for multifamily housing in the NM zoning districts. Eliminating the use permit requirement in the NM district implements the more general direction provided in Action LU4a.
It is important to note that the proposed zoning amendments will not make the review and permitting of multifamily developments in NM and NU districts a ministerial process or allow future multifamily developments by-right. Design review approval from the Planning Commission or City Council at a noticed public hearing would still be required.
The NM and NU zoning districts are areas where the city has already determined multifamily housing development is appropriate and desirable. The primary effects from eliminating the use permit requirement in NM and NU zoning districts would be that the California Environmental Quality Act (CEQA) review would be limited to aspects of design review, and the city would not be required to make certain use permit findings prior to project approval. However, since multifamily housing projects will remain subject to design review approval, the City will still be required to make similar use permit findings prior to project approval.
Given the city’s examination and consideration of areas when they are initially zoned for multifamily development, the redundancy in the findings to approve design review and the findings to approve a use permit, and because all areas zoned NM and NU in the city are urban infill locations, staff has concluded that there would not be adverse impacts or reduced project scrutiny by eliminating the use permit requirement for multifamily housing projects located in the NM and NU zoning districts.
Amendment to the administrative procedures for City Council Appeals As shown in Exhibit 2 of the proposed ordinance, the ordinance would provide an administrative procedure for a councilmember to request a City Council appeal of a decision made by the Community Development Director or Planning Commission. The ordinance eliminates Section
17.84.050 of the Cotati Municipal Code (Directed referral) and creates Section 17.84.030(a)(3), as follows:
3. City Council. A member of the council, in their official capacity, may request that the City Council appeal an action of the director or commission, if the basis of the request is that the subject action may have significant and material effects on the quality of life in the City of Cotati. The request for a council appeal shall be submitted in writing to the city manager within ten calendar days of the action which is the subject of the request.
a. If a request for a council appeal of a director or commission action is made by a councilmember, there shall be a presumption applied that the basis for the request is because the subject action may have significant and material effects on the quality of life within the City of Cotati.
Notwithstanding Section 17.84.030(B), no other basis shall be stated by the councilmember in a written request submitted in their official capacity. b. The city clerk shall schedule consideration of a councilmember’s request for appeal on the next available regularly scheduled council meeting agenda following receipt of the written request. c. The council’s decision to appeal an action of the director or commission shall require a majority vote of the council. d. If the council votes to appeal an action by the director, then the appeal shall be heard by the commission in compliance with provisions of this Chapter. If the council votes to appeal an action by the commission, then the appeal shall be heard by the council in compliance with the provisions of this Chapter.
The proposed code section above provides a process for a councilmember to request that the City Council appeal a decision of the director or Planning Commission. The process closely resembles the appeal process available to any person. After a decision by the director or commission, a councilmember, acting in their official capacity, would have 10 days in which to notify the city manager in writing that they request the City Council consider appealing the action. Upon receipt of the request, the city clerk will schedule the request on the next available City Council agenda for discussion and potential action. If a majority of the Council decides to appeal the staff or commission decision, then the appeal will be heard by the review authority as set forth in Chapter
17.60 of the Cotati Municipal Code (Permit Application Filing and Processing). Per the provisions of Chapter 17.60, the Planning Commission hears appeals of director decisions, and the City Council hears appeals of Planning Commission decisions.
As noted in the staff report for the council discussion held on May 24, 2022, the current process for a “directed referral,” as set forth in Section 17.84.050, is problematic from a processing standpoint and may be contrary to state law because it provides a process for a single councilmember to bypass the Planning Commission’s review of a matter that would normally fall within the commission’s purview. The proposed ordinance would eliminate the directed referral section.
Financial Considerations
The proposed ordinance is not expected to have a financial impact on the City. Costs associated with the review and permitting of multifamily projects are recovered through application fees and deposits in accordance with the city’s cost recovery policy. Appellants of director or commission decisions normally submit an application fee with the appeal application; however, the costs associated with a City Council appeal would be paid from the city’s general fund, but these costs are not expected to be significant.
Environmental Issues
The ordinance to amend the Land Use Code to remove the use permit requirement for proposed multifamily projects located in NM (Neighborhood, Medium Density) and NU (Neighborhood, Urban) zoning districts fulfills certain policies and objectives identified in the 2015 General Plan and Housing Element, and is consistent with the Final Environmental Impact Report (SCH# 2013082037) for the Cotati General Plan Update (certified on March 24, 2015 (Resolution No. 2015-11)); therefore, pursuant to Section 15168 of the CEQA Guidelines, no further environmental review is required. Further, pursuant to CEQA Guidelines Section 15378, the amendments to the administrative procedures for City Council appeals is not a project that could result in either a direct or indirect physical change in the environment and thus is not subject to CEQA.
Attachments:
EXHIBIT A: April 26, 2022, Staff Report - Multifamily Streamlining (DOC) EXHIBIT B - May 24, 2022 discussion on draft City Council appeals (DOC)