EAST PALO ALTO
CITY COUNCIL
STAFF REPORT
DATE: October 18, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Elena Lee, Planning Manager
Hansom Hom, Deputy Manager, Special Projects
SUBJECT: Extension of Planning Entitlements and Building Permits Due to Pending Resolution of Sanitary Sewer Infrastructure and Service Issues Recommendation
Adopt a resolution that extends through December 31, 2024 development entitlements (Planning and Building) set to expire between December 31, 2022 and December 31, 2023.
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
Priority No. 2: Enhance Economic Vitality
Priority No. 6: Create a Healthy and Safe Community
Background
On September 21, 2021, the City Council adopted a resolution that extended through December 31, 2022 development entitlements (Planning and Building) that expired between March 17, 2020 and December 31, 20211. The purpose of this extension was to recognize and address COVID-19 pandemic’s impact on both City and external processes. The extension also acknowledged that economic fallout from the pandemic impacted a project proponent’s ability to carry out the projects. The extension of the permit expiration was intended to allow for applicants to continue working through despite pandemic-induced delays.
Subsequent to the adoption of the resolution, on April 5, 2022, the San Mateo Local Agency Formation Commission (LAFCO) released the Draft Municipal Service Review (MSR) for the City of East Palo Alto (City), the East Palo Alto Sanitary District 1 https://eastpaloalto.iqm2.com/Citizens/Detail_LegiFile.aspx?Frame=&MeetingID=1425&MediaPosition=&I D=1881&CssClass=
(EPASD), and the West Bay Sanitary District (West Bay). The primary reason for the preparation of the MSR was the inability of developers to obtain will serve letters from the EPASD to enable the issuance of building permits to allow the construction of projects to proceed in East Palo Alto.
Upon direction by the City Council, the City is currently in the process of requesting LAFCO grant authority to the City of East Palo Alto to establish EPASD as a subsidiary district of the City. The reason for transferring governance and operation of sanitary sewer service to the City of East Palo Alto is to provide for more efficient operation and coordinated planning of sewer service, infrastructure and capacity to accommodate planned growth and to improve transparency, accountability and environmental health to meet the current and future needs of all District ratepayers. The proposal will provide the planning and implementation of the infrastructure to allow the construction of development already approved by the City of East Palo Alto. Many recently approved entitlements have been delayed because will serve letters have not been issued by the EPASD.
Analysis
The proposed resolution is specific to planning entitlements and building permits that will be expiring by December 31, 2022, which is the termination date for the 2021 permit extension. The proposed resolution would extend approved entitlements through December 31, 2024. The purpose would be to allow applicants to extend their permits while providing the City more time to develop a path forward to resolve the issues surrounding EPASD and sanitary sewer service. Given that resolving these issues is a complex process requiring coordination with multiple entities, extending the permit expiration date two additional years recognizes the situation is outside the control of individual applicants.
Planning entitlements include major projects, such as use permits and minor design review applications. Building permits would include public (City) and private construction projects, as well as small projects, including Accessory Dwelling Units (“ADUs”) and other minor residential building permits
Planning Building
Current active permit
applications
69 35
# of ADUs and other minor
residential permits
22 100
Large permits 8 14
Entitlements expiring after December 31, 2024, would be subject to the timelines applicable when the project was approved. Typically, Planning Commission approvals are valid for 24 months, during which time a building permit must be issued, with the option for an extension of up to one year. Building permits are valid for between 12 months and 36 months, depending on the valuation of the project.
Summary
The processing, approval, and issuance of land use entitlements represent a substantial investment of money, time, and effort toward the successful completion of these projects. Expiration of these entitlements represents a significant loss for the owners as well as economic, employment, and housing benefits for the City, with a risk that development revenue may not be available to meet the City’s fiscal challenges.
If the City Council desires to protect against this potential loss and preserve development opportunities, staff recommends the City Council extend the expiration date for previously approved developments to allow more time to resolve the sanitary sewer infrastructure and service issues; if approved, this extension would apply equally to all development entitlements (Planning and Building) including tentative and final maps, that would expire or will be expiring between December 31, 2021 and December 31, 2023 through to December 31, 2024.
The automatic permit extension would not apply to use permits that require regular renewals to confirm compliance with City requirements or approvals for temporary or interim uses. Those applicants would be required to apply for use permit renewals as required in their original use permits.
Fiscal Impact
There are no fiscal impacts associated with this action.
Public Notice
The public was provided notice by making the agenda and report available on the City’s website and on a bulletin board located at City Hall: 2415 University Avenue, East Palo Alto.
Environmental
The action is exempt from the California Environmental Quality Act (CEQA), pursuant to CEQA Guideline section 15061 (b)(3), because it can be seen with certainty that temporarily extending certain permit approvals for a limited time period will not result in direct or indirect changes in the environment.
Attachments
A. Permit Extension Resolution