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6.2 Staff Report

Foster City City Council
March 17, 2025

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6.2 Staff Report
Meeting
March 17, 2025
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Foster City City Council
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Text extracted from the city's file for reading and search. Open the original on fostercity.primegov.com. That file is the official record.

DATE: March 17, 2025

TO: Mayor and Members of the City Council
VIA: Stefan Chatwin, City Manager
Marlene Subhashini, Assistant City Manager

FROM: Sofia Mangalam, Community Development Director
Helen Gannon, Senior Planner
DEPARTMENT: Community Development
SUBJECT: GENERAL PLAN AND HOUSING ELEMENT ANNUAL PROGRESS REPORT FOR 2024

RECOMMENDATION
It is recommended that the City Council, by Minute Order, accept the General Plan Annual Progress Report (APR) and Housing Element APR for 2024, authorize its transmittal to the California Governor’s Office of Land Use and Climate Innovation (LCI) and the California Department of Housing and Community Development (HCD), and find the report exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA guideline section 15061(b)(3).

EXECUTIVE SUMMARY
California Government Code 65400 requires each jurisdiction to prepare an annual report on the status of the General Plan progress and provide information regarding the implementation of the General Plan for their city or county, including the Housing Element. The APR includes information for decision-makers to assess how the General Plan was implemented during the 12-month reporting period.

On February 20, 2025, the Planning Commission received the General Plan APR and Housing Element APR and recommended the City Council’s acceptance of the APR by Resolution No. P-3-25. Following Council’s acceptance of the APR, the report will be filed with LCI and HCD before April 1, 2025.

BACKGROUND
California Government Code 65400 requires that after the legislative body (City Council) has adopted all or part of a General Plan, the planning agency (Planning Commission) shall review an annual report on the status of the General Plan progress and its implementation and provide the report to the legislative body. The APR is then forwarded to the Governor’s Office of Land Use and Climate Innovation (LCI), previously known as Office of Planning and Research (OPR) and the Department of Housing and Community Development (HCD) by April 1 of each year. The Government Code also includes specific requirements for information about the status of Housing Element programs and progress in meeting its share of the Regional Housing Need Allocations (RHNA) issued by the Association of Bay Area Governments (ABAG).

On February 20, 2025, Staff presented the General Plan and Housing Element APR for 2024 to the Planning Commission. The Planning Commission voted 4-0-0-1 (1 absent) adopting Planning Commission Resolution No. P-3-25 (Attachment 1) recommending the City Council’s acceptance of the General Plan APR and Housing Element APR for 2024.

ANALYSIS
All cities in California are required to prepare and adopt a General Plan. The General Plan identifies policies and programs addressing the development and redevelopment of land, preservation of parks and open spaces, provision of housing for current and future residents, conservation of natural resources, improvement of the circulation and transportation system, control of noise and protection of life and property from hazards.

The purpose of the APR is to provide local legislative bodies (City Council) and the public with information regarding the implementation of the General Plan for their city or county, including the Housing Element. APRs also inform the public of the progress in meeting the community’s goals. APRs must be presented to the local legislative body for its review and acceptance. Pursuant to Government Code Section 65400(a)(2)(B)(ii), the housing element portion of the report shall be considered at a public meeting before the legislative body where members of the public shall be allowed to provide oral testimony and written comments. The APR should provide enough information for decision makers to assess how the General Plan was implemented during the 12-month reporting period. More specifically, APRs should explain how land use decisions relate to adopted goals, policies, and implementation measures of the General Plan.

As discussed above, the General Plan and Housing Element APR is due to HCD by April 1 of each year. This year’s APR evaluates the status of the implementation programs and housing production for the time period between January 1, 2024 and December 31, 2024.

The attached Table (Attachment 2) comprises the General Plan APR and provides a brief summary of the status of the General Plan and the implementation programs contained in each General Plan Element. The status of the Housing Element implementation is part of the General Plan Annual Report reported in the table format required by HCD (Attachment 3).

Highlights of accomplishments in the implementation of General Plan programs in 2024 are included below with the corresponding references to the General Plan Element Implementation Program:
• Land Use & Circulation Element
In 2024, the City launched a number of initiatives to address land use & circulation. oPeriodic Monitoring of Land Uses Throughout the City - In 2024, the City received an application to construct a new Research and Development building on the Gilead Sciences Integrated Campus Master Plan located at 335 Lakeside Drive. (LUC-C-12-a)
oGreen Building Guidelines and Incentives – In 2024, a total of 65 solar permits and 39 EV Charging electrical permits were issued and a total of 6 solar rebates were issued in 2024. (LUC-H-1-a)
oClimate Action Plan (CAP) – The Climate Action Plan (CAP) 2024 Update was approved by City Council on November 18, 2024. The Update incorporates measures to lower the City’s Greenhouse Gas emissions to 49% below 2005 levels by 2030. Strategies included in the Plan cover four focus areas: Energy and Water, Transportation and Land Use, Waste and Consumption, and Resiliency and Leadership. (LUC-H-2-a) oWastewater Systems Improvement – Foster City continues working with the City of San Mateo to construct improvements at the jointly owned wastewater treatment plant (WWTP). Startup and commissioning of new treatment facilities are targeted to be completed by August 2025, with final completion by April 2026. (LUC-L-13-a)
oBicycle and Pedestrian Master Plan – On November 4, 2024, Council approved the Foster City Bicycle and Pedestrian Master Plan (BPMP) scope of services and authorized staff to issue the Request for Proposals (RFP).

Consultant selection process for the development of a Bicycle and Pedestrian Master Plan began in early 2025. Funding in the amount of $160,000 is budgeted, with a 50% match of $80,000 awarded in grant funding. (LUC-E-2-b)
oTraffic Signals Project – Construction of the Traffic Signals at various Intersections – CIP 301-681, was completed and Notice of Completion was accepted in February 2024. The project added 4 new signalized intersections at Gull Avenue and East Hillsdale Boulevard; Foster City Boulevard and Bounty Drive; Edgewater Boulevard and Port Royal Avenue, and Shell Boulevard and Beach Park Boulevard. (LUC-F-1-c) oWater System Improvements – On October 21, 2024, the Board of Directors of the Estero Municipal Improvement District (EMID) approved the scope of services for the Water Main Condition Assessment Project and authorized staff to issue an RFP. The selection of a consultant and award of a contract is anticipated to take place in March 2025. (LUC-L-11-a) • Parks and Open Space Element
oSpecial Events – In 2024, the City hosted its traditional events including the Fourth of July Celebration, Summer Concert Series, Halloween Festival and Tree Lighting. Summer Days also returned for a three-day festival featuring carnival rides, music, food trucks, and a car show. (PC-y) oParks Facilities Plan and Improve Facilities –
▪New Foster City Community Center: On January 16, 2024, the City Council provided direction to allocate an additional approximately $9.49 million to finance the construction of the Foster City Recreation Center rebuild project. On September 3, 2024, the City Council, by unanimous decision, awarded the construction contract to BHM Construction. On September 16, 2024, the Recreation Center closed to the public and all services and classes were moved to the VIBE Teen Center and Community Center. On November 18, 2024, the old Recreation Center building was demolished and on December 18, 2024, the community was invited to a groundbreaking ceremony in Leo J. Ryan Park to celebrate the construction of a new Foster City Community Center.
▪Parks Master Plan: The City Council awarded a Professional Services Agreement to Wallace Roberts & Todd Design, LLC (WRT) on May 6, 2024, to provide professional planning and consultant support services for the Parks Master Plan Project. The scope of services for this project includes the Master Plan preparation, an inventory and assessment report, project management,
development and execution of a public involvement process, working closely with staff to prepare the Plan, and creating a document for distribution to the public. A Park Needs Assessment was started in August 2024, and a project website was created (www.fostercity.org/parksmasterplan) to keep the public informed on progress. Pop-up events and focus groups were held from October to November 2024 and a Parks Master Plan Task Force was formed and met in October 2024. A community statistically valid survey was conducted in December 2024 and a public workshop is set to take place in early 2025. (LUC-L-5-a & PC-d)
• Safety Element
oLevee Protection Planning and Improvements – Construction of the Levee Protection Planning and Improvements Project (CIP 327-657) was completed in February 2024. The Levee Project is designed to be resilient to the year 2100. (S-3.4)
oCrime Prevention/Education – In 2024, the Foster City Police Department (PD) continued to provide a variety of crime prevention programs to educate and involve the community. (S-1.10)
▪Communications - In 2024, social media was used to provide crime alerts, crime prevention tips, traffic information and safety tips to the Foster City community. Residential and Commercial Crime Prevention surveys were conducted.
▪The City’s Mental Health Clinician supported community members during various calls throughout 2024.
▪Drake, the community service dog, and his handler attended 75 events throughout 2024, offering comfort and a calming presence to those in need, while also engaging with the public.
▪PD attended the Foster City 4th of July Celebration and the Summer Days Event to ensure public safety at these events.
▪Throughout the year, PD also performed routine safety checks around schools during school days.
▪AB 506 Mandated reporter training was provided to Foster City Parks and Recreation summer camp counselors. AB 506 sets new requirements for youth serving organizations in three areas:
screening, training, and policies.
▪In collaboration with civic and community partners, the Police Department hosted the annual National Night Out Event at Leo J.

Ryan Park on August 6, 2024.
▪In December 2024, PD participated in Bike Safety Day at Beach Park Elementary School.
• Conservation Element
oWater Quality – In 2024, as part of CIP 405-660 – Water Tanks and Facilities Improvements Project, mixers were installed in each of the three 4-million-gallon steel water tanks to stabilize water quality and temperatures inside tanks, reducing the rate of degradation of the chlorine residual, to deliver more consistent water quality. (C-e) oReduction in Automobile Trips – The City continues to promote regional events such as the Great Race for Clean Air and Bike to Work Day, as well as promoting Commute.org. The Climate Action Plan 2024 Update includes measures and actions to reduce vehicle miles travelled commuting to work by encouraging alternate means of transportation beyond Single- Occupancy Vehicles. (C-m)
oSolar Heating and Cooling: In 2024, 65 solar permits and 39 EV charging station permits were issued. (C-p)
• Housing Element – Housing Element 2023-31 was adopted by the City Council on May 22, 2023, and revisions were adopted on March 20, 2024. The City received notification from the Department of Housing and Community Development (HCD) on February 2, 2024, that the proposed revisions to the Housing Element met the statutory requirements of the State Housing Element Law. On April 18, 2024, the Foster City Housing Element 2023-2031 was certified by the California HCD.
oSB 9 Objective Design Standards – On November 4, 2024, the City Council adopted Ordinance 683 amending Title 17, “Zoning” of the Foster City Municipal Code, adding a new Chapter 17.79 Two-Unit Developments and Urban Lot Splits. (H-D-6-f)
oPreapproved ADU/JADU Designs and Expedited Review – On August 5, 2024, the City Council approved Resolution 2024-80, adopting the four (4) Green and Livable Accessible Dwelling Unit Resource (GLADUR) Pre-reviewed designs for detached accessory dwelling units (ADUs) prepared by the Housing Endowment and Regional Trust of San Mateo County (HEART). In addition, pursuant to AB 1332, the City established a program for preapproval of ADU designs.

On October 15, 2024, and October 23, 2024, staff held ADU Information Sessions on ADUs/JADUs for all homeowners’ associations to attend. (H-D-4-c)
oMulti-Family Objective Design Standards – Ordinances 673 and 674 were adopted by the City Council on January 16, 2024, amending Title 17, “Zoning” by adding a new Chapter 17.96 Multifamily and Residential Mixed Use Objective Design and Development Standards and making revisions to various Chapters including 17.12 R-1 Single Family Residence District; 17.04 Definitions; 17.14 R-2 Two Family Residence District; 17.16 R-T Townhouse Residence District; 17.18 R-3 Medium Density Multiple-Family Residence District; 17.20 R-4 High Density Multiple-Family Residence District; 17.26, C-2 General Business District; 17.28 C-M Commercial Mix District; 17.36 PD Planned Development Combining District; 17.58 Architectural Control and Supervision; and 17.62 Off-Street Parking Regulations. (H-D-6-e) oAccessory Dwelling Units – On September 18, 2023, the City Council approved updates to Chapter 17.78 of the Municipal Code to comply with 2023 State laws. On December 2, 2024, City Council adopted Ordinance 684, amending Chapter 17.78, Accessory Dwelling Units, to include objective design standards for ADUs and to comply with recently adopted state laws. (H-D-4-a)
oADU/JADU Financial Incentive Program – In 2024, the City applied for the State Local Housing Trust Fund NOFA and award results are still pending. The Program Guidelines were approved by the City Council on September 3, 2024, by adoption of Resolution 2024-94. (H-D-4-b) oRental Housing Assistance Information – Staff created and updated multiple webpages for information and resources on fair housing, funding, housing legislation, rental below market rate units, etc. (H-C-4- a)
oAnti-Displacement Strategy – On September 16, 2024, a City Council Study Session was held on the Anti Displacement Strategy, and by Minute Order, the City Council provided policy direction to establish Anti- Displacement Strategy as a mandate for BMR landlords/property managers and codify the strategies in an Ordinance. (H-C-3-b) oAmend Parking Requirements – On January 16, 2024, the City Council adopted Ordinance 674, making revisions to various Chapters, including

17.62, amending parking requirements for multi-family housing as necessary, including but not limited to reducing guest parking requirements by 50% and establishing bicycle parking requirements for residential uses, to allow General Plan densities and to reduce housing costs. On December 2, 2024, the City Council adopted Ordinance 684, amending Chapter 17.62 to provide appropriate parking requirements for special needs populations. (H-D-6-c and LUC-G-1-a)
oAdequate Water Supply – On May 1, 2023, the EMID approved a new Chapter 8.90, Water Neutrality Growth, to the EMID Municipal Code and in 2024, developed guidelines for implementation of the Ordinance.

EMID has Water Conservation ordinances and offers water conservation rebates to all water customers (residential and commercial) and actively promotes rebates. (H-A-4-a)
oAge Friendly Initiative – On June 5, 2023, City Council accepted the Age-Friendly City Initiative Three-Year Action Plan by Minute Order No. 1922. Agreement for Age-Friendly Action Plan Consultant Services was executed. Staff worked with the Consultant to draft an Action Plan based on stakeholder survey input. In November 2023, the Association of Retired Persons (AARP) reviewed and approved a submitted draft of Foster City’s AFC Initiative Action Plan. The City’s AFC plan was approved by the City Council on January 16, 2024.

As part of this effort, the Parks and Recreation Department held outreach meetings with providers in 2024. Staff opted to have one-on- one meetings rather than a roundtable due to low turnout at prior meetings and at the request of providers.

In an effort to enhance programming for seniors in the community, the Parks and Recreation Department hosted a Senior Showcase, offered free activities like Drop-in Cards and Bingo, organized trips and seminars, and provided a designated senior seating area at the 2024 annual Tree Lighting Ceremony. (H-F-1-h)
oContinue to Monitor Expiration of Affordability Covenants – Staff reviewed the expiration dates for all rental affordability covenants, and none will expire within the next 5 years. In the 2024 General Plan APR, staff listed the seven (7) ownership units in Emerald Bay as one of the affordability covenants that will expire by 2026. (H-C-2-b) oHousing unit production – The City issued building permits for seven (7) ADUs in 2024 and issued five (5) Certificates of Occupancy (or temporary certificates) in 2024 for new units. (H-A-1-a & H-A-1-b) Regional Housing Needs Allocation Progress
Legislation, such as Senate Bill 35 (SB 35), Assembly Bill 73 (AB 73), and Senate Bill 570 (SB 570) adopted in 2017, has provided penalties and incentives related to making progress toward meeting RHNA for each Planning Period. SB 35 which added Section 65913.4 to the Government Code was set to sunset on January 1, 2026. However, SB 423, which went into effect on January 1, 2024, extended the expiration date to January 1, 2036. HCD released a report on June 3, 2024, the SB 423 Statewide Determination Summary, showing that Foster City was one of 238 jurisdictions in the state that have insufficient progress toward their Lower income RHNA (Very-Low and Low income) and are therefore subject to the streamlined ministerial approval process (SB 423 (Chapter 778, Statutes of 2023) streamlining) for proposed developments with at least 50% affordability.

Those jurisdictions that are not on track to meet their housing needs will lose the ability to reject certain types of development projects under SB 423. Cities and counties are subject to SB 423 streamlining when they have not adopted a housing element that has been found in compliance by HCD. A total of 254 jurisdictions are subject to the streamlined ministerial approval process for proposed developments with at least 10% affordability and another 238 jurisdictions are subject to this process when proposed developments have at least 50% affordability. Progress is prorated and recalculated each year until the mid-point of the Housing Element Reporting Period and then recalculated again at the end of the Period.

A summary of housing development permits issued showing progress toward meeting the RHNA is shown below. Table 1 reports how many permits were issued each year.

Table 2 reports RHNA progress of all permits completed (built and occupied) by affordability in all cycles pertaining to the 2023-2031 Housing Element. The difference in the numbers provided in the two (2) tables below (51 units) is a result of units that have been approved but not yet occupied until 2024. See attached Table A2 of Attachment 3 for more detailed information.

Table 1. Planning Period Permits Issued by Affordability for RHNA 2023-2031 Income Level RHNA Year 1 2023 Year 2 2024 Total Units to Date
Very Low 520 1 4 5
Low 299 1 0 1
Moderate 300 2 3 5
Above Moderate 777 2 0 2
Total 1,896 6 7 13
Table 2. Units Completed for RHNA 2023-2031
Income Level RHNA
Units
Completed
7/1/2022-
12/31/2022
Units
Completed
1/1/2023 -
12/31/2023
Units
Completed
1/1/2024-
12/31/2024
Total Units
Completed
as of
12/31/2024
% RHNA
Met
Very Low 520 6 3 1 10 1.92%
Low 299 13 0 0 13 4.35%
Moderate 300 5 0 3 8 2.67%
Above Moderate 777 20 12 1 33 4.25%
Total 1,896 44 15 5 64 3.38%
Housing Element Program Implementation
The adopted Housing Element 2023-31 includes several programs to ensure that adequate housing sites are available during the planning period to make it possible to produce the number and type of housing units in the RHNA.

Foster City’s housing plan includes seven (7) goals as follows:
•H-A: Reinforce the City’s commitment to meeting housing needs. •H-B: Protect existing housing, waterfront character, and resources. •H-C: Protect the supply and affordability of rental housing. •H-D: Pursue public and private redevelopment opportunities to increase the supply of housing.
•H-E: Address affordable housing needs.
•H-F: Address housing for special needs populations.
•H-G: Affirmatively further fair housing.

The plan provides for a variety of housing types and sizes, a mixture of rental and ownership housing, and housing that supports special needs populations. The policies and programs contained in this Housing Element support these goals while also ensuring that the City will meet its statutory obligations to affirmatively further fair housing and facilitate housing production at all income levels. Please refer to Table D in Attachment 3 for Housing Element - Program Implementation Status. Some of the programs that were implemented in 2024 have been discussed in detail above.

Assembly Bill (AB) 1743 Compliance: AB 1743 requires local planning agencies to include in their APR whether housing development applications are subject to a ministerial or discretionary approval process. The reporting only pertains to development applications that result in new units and not applications that are remodeling of existing homes or additions to existing homes. In 2024, 12 housing development applications were received that would result in new units. All 12 projects required ministerial action (because they were ADUs). More detailed information pertaining to Building permit issuance is available in Table A2 of Attachment 3.

AB 2094 Compliance: AB 2094 requires local planning agencies to include in their APR its progress towards meeting its share of regional housing needs for extremely low- income households. There was one (1) extremely low-income unit completed in 2024.

The homeowners of the extremely low-income ADU unit indicated that they would be collecting zero rent for family use. It also requires reporting associated with the Affordable Housing and High Roads Jobs Act of 2022 (AB 2011), including: (1) the location of the project; (2) the status of the project; (3) total number of units of the project; (4) number of units in the project that are rental housing; (5) number of units in the project that are for- sale housing; and (6) household income category of the units. AB 2094 also requires reporting of data from all projects approved to receive a density bonus. The City did not receive any applications for density bonus for any housing development in 2024.

Submittal to HCD and LCI
Government Code Section 65400 requires the local planning agency to provide the APRs to the legislative body (i.e., City Council), HCD, and LCI by April 1st of each year for the prior calendar year reporting period. In order to ensure that the City remains in compliance with State law, staff must submit the 2024 General Plan and Housing Element APRs (Attachments 2 and 3) to HCD and LCI by April 1, 2025.

California Environmental Quality Act
The General Plan and Housing Element APRs do not qualify as a project as defined in the California Code of Regulations Section 15378(a). The reports are administrative activities conducted by the City that will not result in direct or indirect physical changes in the environment. Further, the APRs are exempt from review under the California Environmental Quality Act (CEQA), pursuant to California Code of Regulations Section 15601(b)(3). The activity is covered by the commonsense exemption that CEQA applies only to projects, which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

FISCAL IMPACT
There is no fiscal impact associated with City Council review and City submittal of these annual reports to HCD and LCI.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Smart Planning, Development, and the Local Economy
ATTACHMENTS:

Attachment 1 – Planning Commission Resolution No. P-3-25 Attachment 2 – Table of General Plan Programs - General Plan Annual Report for 2024 Attachment 3 – APR Reporting Tables A, A2, B, D, K & LEAP Reporting

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