Agenda — Fountain Valley City Council, April 19, 2022

AGENDA

CITY COUNCIL/ SUCCESSOR

AGENCY TO THE FOUNTAIN

VALLEY AGENCY

FOR COMMUNITY DEVELOPMENT/

FOUNTAIN VALLEY HOUSING AUTHORITY
Closed Session 4:30 p.m.

Study Session Immediately Following Closed Session
Regular Meeting 6:00 p.m.

Tuesday, April 19, 2022
Council Chambers
10200 Slater Avenue
Fountain Valley, CA 92708
http://www.fountainvalley.org
City Council Member Glenn Grandis will be at the following location:

Fort Lauderdale Marriott North
Lobby
6650 North Andrews Ave.

Fort Lauderdale, FL 333

MEETING ASSISTANCE: In compliance with the Americans with Disabilities Act, anyone needing special assistance to participate in a meeting of the government bodies listed herein should contact the City Clerk’s Office at (714) 593-4445. Notification 72 hours prior to the meeting allows the City to make reasonable arrangements to ensure accessibility to the meeting.

AGENDA COMMUNICATIONS: All revised or additional documents and writings related to an item on this agenda provided to all or a majority of the government body members after distribution of the agenda packet, are available for public inspection (1) in the City Clerk’s Office at 10200 Slater Avenue, Fountain Valley, CA 92708 during normal business hours; and (2) in the Council Chambers at the time of the meeting. Unless directed otherwise by a government body listed herein all actions shall be based on/memorialized by the latest document submitted as a late communication.

PUBLIC COMMENTS/PUBLIC HEARINGS: Persons wishing to address the City Council or other government body listed complete a speaker card and give it to the City Clerk prior to the public comment period. Requests to speak will not be accepted after the public comment session begins without permission of the Mayor/Chair. Speakers must limit remarks to a total of (3) three minutes and address the City Council through the Mayor. Comments to individuals or staff are not permitted. Scheduled Matters, including Public Hearings: Indicate on the card what item you want to address. Unscheduled Matters: Indicate on the card what subject matter you
want to address. Comments must be related to issues that are within the jurisdiction of the governing body listed on the agenda. Pursuant to the Brown Act, the governing body may not enter into discussion regarding items not on the agenda.

CONSENT CALENDAR: All matters listed under the Consent Calendar are considered by the governing bodies listed herein to be routine and will be enacted on simultaneously with one motion without discussion unless separate action and/or discussion is requested by a governing body member, staff, or a member of the public.

PUBLIC HEARINGS: Persons wishing to speak in favor of or in opposition to a proposal are given an opportunity to do so during the public hearing. Those wishing to address a governing body during the hearing are requested to complete the speaker card and submit it to the City Clerk prior to the hearing. If a proposed action is challenged in court, there may be a limitation to raising only those issues raised during the hearing or in written correspondence received by the governing body at or before the hearing.

Note: The Fountain Valley City Council serves as the Successor Agency to the Fountain Valley Agency for Community Development (Successor Agency), the Fountain Valley Housing Authority, and the Fountain Valley Finance Authority. The Actions of the Successor Agency are separate and apart from the actions of the City Council.

ZOOM LINK INFORMATION
• Participants that choose to watch the City Council meeting through zoom are automatically placed in the waiting room and will only be allowed into the Zoom meeting if they request to make a public comment. In order to make a public comment, you will indicate through the chat feature which item you would like to speak on, and click on the “raise hand” icon to let the administrator know you wish to speak. • All participants are muted unless you are requesting to speak, at which time you will be allowed to unmute and make you comment.
• All public comments are allowed up to 3 minutes to speak.

City of Fountain Valley is inviting you to a scheduled Zoom meeting.

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Time: Apr 19, 2022 04:30 PM Pacific Time (US and Canada) Join Zoom Meeting
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CLOSED SESSION
CALL TO ORDER 4:30 p.m.

PUBLIC COMMENTS (Closed Session matters only)
Persons wishing to speak on a Closed Session matter are requested to identify themselves by completing a blue speaker card indicating the item they want to address and to give the card to the City Clerk prior to the public comment period.
• CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION
Significant exposure to litigation pursuant to paragraph (3) of subdivision (d) of Section 54956.9:
(1 potential case)
• CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION
Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9: (1 potential case.)

STUDY SESSION
CALL TO ORDER Immediately Following Closed Session
PUBLIC COMMENTS (Study Session matters only)
Persons wishing to speak on a Study Session matter are requested to identify themselves by completing a blue speaker card indicating the item they want to address and to give the card to the City Clerk prior to the public comment period. The City Clerk will call upon those that wish to speak. • Fountain Valley Crossing Specific Plan Marketing Update – Presentation by Maggie Le, Deputy City Manager

OPEN SESSION
CALL TO ORDER 6:00 p.m.

INVOCATION
SALUTE TO THE FLAG Mayor Pro Tem Kim Constantine

CITY COUNCIL/SUCCESSOR AGENCY/HOUSING AUTHORITY/ ROLL CALL Council Members: Bui, Grandis, Vo, Mayor Pro Tem/Vice Chair Constantine, Mayor/Chair Harper

ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS

CITY MANAGER/MAYOR UPDATE

PRESENTATIONS
• Certificate of Recognition to New Fountain Valley School District Superintendent Katherine Stopp
• Certificate of Kindness Recognition to Brandon Dotts & Stephen Bayer • Certificate of Recognition to the 2022 Miss Fountain Valley Bianca Singer • Donate Life Month Proclamation
• Presentation on Community Service Day – Presented by Jynene Johnson • Baby Whale Stella Art Presentation (Partnership with Wyland Foundation and MWD for good water stewardship to promote sustainable ecosystem) and Introduction of Bob McVicker, representative of MWDOC

FIRST CITY COUNCIL/ SUCCESSOR AGENCY/ HOUSING AUTHORITY/ PUBLIC COMMENTS (Unscheduled Matters Only)
The Unscheduled Matters Public Comments portion will last 15 Minutes at the beginning of the meeting. Any requests to speak on unscheduled matters after the initial 15 minutes, will be heard at the end of the meeting, unless the Mayor approves an extension of this time. If an individual speaks during the First unscheduled matters time period, they do not get to speak at the end of the meeting as well. Persons wishing to speak on an unscheduled matter are requested to identify themselves by completing a blue speaker and to give the card to the City Clerk. Each person will have up to 3 minutes to speak. The City Clerk will call upon those that wish to speak.

PUBLIC COMMENTS (Scheduled Matters Only)
Persons wishing to speak on Agenda item(s) are requested to identify themselves by completing a blue speaker card indicating the item they want to address and to give the card to the City Clerk prior to the public comment period. Each person will be given up to 3 minutes to speak on the entire Consent Calendar, 3 minutes to speak on each item pulled from the consent calendar, and 3 minutes to speak on any agendized item(s) not appearing on the Consent Calendar.

CONSENT CALENDAR
Consent Calendar Items 1-2 will be approved simultaneously with one motion, unless separate action/or discussion is requested.

1. Receive and File the Draft Minutes of the April 5, 2022 regular City Council Meeting Page 5 2. Second Reading and Adoption of an Ordinance Approving Zoning Map Amendment 433 and an Ordinance approving Code Amendment 21-01 for the Slater Avenue Mixed-Use Project located at 10201, 10221, and 10231 Slater Avenue Page 11 Alternative No. 1 – Adopt the attached Ordinances of the City Council of the City of Fountain Valley approving Zoning Map Amendment 433 to change the zoning map designation from C1 – Local Business to MU-1 – Mixed-Use 1 District for the Project located at the northeast corner of San Mateo Street and Slater Avenue (10201, 10221, and 10231 Slater Avenue) and approving Code Amendment 21-01 to create a Mixed-Use Zoning District that includes specific zoning standards for mixed-use zones including permitted uses, development standards, exceptions, and definitions for the Project located at the northeast corner of San Mateo Street and Slater Avenue (10201, 10221, and 10231 Slater Avenue).

PUBLIC HEARINGS
Each person will have up to 3 minutes to speak on each Public Hearing.

3. Adopt A Resolution of Intention and Introduction and First Reading of an Ordinance to Approve an Amendment to The Contract Between the Board of Administration California Public Employees’ Retirement System and The City Council of the City of Fountain Valley – Presentation by Carrie Hanes, Human Resources Director Page 74 City staff recommends Alternative 1: Approve the Resolution of Intention and Ordinance to Approve an Amendment to the Contract between the Board of Administration California Public Employees’ Retirement System and the City Council of the City of Fountain Valley.

COUNCIL MEMBER ITEMS FOR FUTURE CONSIDERATION

CITY COUNCIL/ SUCCESSOR AGENCY/ HOUSING AUTHORITY/ PUBLIC COMMENTS (Unscheduled Matters Only)
Persons wishing to speak on an unscheduled matter are requested to identify themselves by completing a blue speaker and to give the card to the City Clerk. Each person will have up to 3 minutes to speak. The City Clerk will call upon those that wish to speak.

CITY COUNCIL/SUCCESSOR AGENCY/HOUSING AUTHORITY AB 1234/GENERAL COMMENTS

ADJOURN THE MEETING OF THE CITY COUNCIL/SUCCESSOR

AGENCY/HOUSING AUTHORITY
The next Regular Meeting of the Fountain Valley City Council is May 3, 2022 at 6:00 p.m., in the Fountain Valley Council Chambers, 10200 Slater Avenue, Fountain Valley.

MINUTES OF THE

CITY COUNCIL/ SUCCESSOR AGENCY TO THE FOUNTAIN

VALLEY AGENCY

FOR COMMUNITY DEVELOPMENT/ FOUNTAIN VALLEY

HOUSING AUTHORITY
Closed Session 5:00 p.m.

Regular Meeting 6:00 p.m.

Tuesday, April 5, 2022
Council Chambers

CLOSED SESSION
CALL TO ORDER 5:01 p.m.

PUBLIC COMMENTS (Closed Session matters only)
 CONFERENCE WITH LABOR NEGOTIATORS
Pursuant to Government Code §54957.6.

Agency Designated Representatives: City Manager, Raul Godinez II; Deputy City Manager, Maggie Le; Budget Manager, Shannon Espinoza; Human Resources Director, Carrie Hanes; Principal Human Resources Analyst, Tania Knauerhaze; Colin Burns, Attorney for the City.

Employee Organizations: Police Officers' Association (POA), Police Officers' Management Unit (POMU), Fountain Valley Firefighters Association (FVFA), Individually Represented Battalion Chiefs (BCs)
No reportable action
 CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION
Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9: (Number of potential cases unknown) No reportable action
 CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: 17565 & 17569 Los Alamos Street, Fountain Valley, CA 92708 Agency Negotiators:

City Manager, Attorney for the City, Director of Community Services Negotiating Parties: City of Fountain Valley and Boys and Girls Club Under negotiation: Price and Terms of Payment Council member Glenn Grandis left the closed session for this item.

No reportable action

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OPEN SESSION
CALL TO ORDER 6:01 p.m.

INVOCATION Mayor Patrick Harper
SALUTE TO THE FLAG Council Member Ted Bui

CITY COUNCIL/SUCCESSOR AGENCY/HOUSING AUTHORITY/ ROLL CALL Council Members: Bui, Grandis, Vo, Mayor Pro Tem/Vice Chair Constantine, Mayor/Chair Harper All members were present

CITY MANAGER / MAYOR UPDATES
City Manager Raul Godinez informed the City Council that the new Planning / building Director will start on April 18th and there will be an Easter Egg Hunt that will be held by the Community Services Department. Mayor Harper differed to Council Member Grandis, Council Member Grandis informed everyone that April is Autism Awareness Month.

ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS
There were additional attachments in regards to item number 5 on the agenda.

FIRST CITY COUNCIL/ SUCCESSOR AGENCY/ HOUSING AUTHORITY/ PUBLIC COMMENTS (Unscheduled Matters Only)
Charlyn Moltane

CONSENT CALENDAR
Consent Calendar Items 1 – 4 were approved simultaneously.

1. Receive and File the Draft Minutes of the March 15, 2022 Regular City Council Meeting ACTION: Move to Receive and File the Draft Minutes of the March 15, 2022 Regular City Council Meeting
MOTION: Vo SECOND: Constantine
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None
ABSTAIN: None

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2. Approve a Second Amendment to the Agreement CON-19-62 with MemorialCare for PreEmployment Examinations, Industrial Injury Medical Treatment, Employee Annual Physicals, and Medical Services
ACTION: Move to Approve a Second Amendment to the Agreement CON-19-62 with MemorialCare for Pre-Employment Examinations, Industrial Injury Medical Treatment, Employee Annual Physicals, and Medical Services
MOTION: Vo SECOND: Constantine
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None
ABSTAIN: None

3. Receive and File Fountain Valley Six Month Strategic Objectives Update ACTION: Move to Receive and File Fountain Valley Six Month Strategic Objectives Update MOTION: Vo SECOND: Constantine
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None
ABSTAIN: None

4. Resolution amending the Conflict-of-Interest Code of the City of Fountain Valley by amending designated positions and rescinding previous resolutions inconsistent therewith ACTION: Move to Approve A Resolution amending the Conflict-of-Interest Code of the City of Fountain Valley by amending designated positions and rescinding previous resolutions inconsistent therewith
MOTION: Vo SECOND: Constantine
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None
ABSTAIN: None

PUBLIC HEARINGS

5. Public Hearing and Introduction: GPA 21-01, ZMA 433, CA 21-01, MND for the Slater Avenue Mixed-Use Project located at 10201, 10221, and 10231 Slater Avenue

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Public Hearing Opened at 7:37 p.m.

Public Comments in person – Libby Frolichman, Janice Dischner, Rosalia Escutia, Rudy Huebner, Joe Mcreynolds, Ruby Lee, Greg Trigo, Kay Doerr, Amanda Brill, Fritz Vanderschraf, Memory Bartlett, Andrew Gustin, Wallace Rodecker, Steven Schultz, Cheryl Brothers, Steve Nagel
Public Comments from Zoom – Victoria Yunat, Jaye Towne, Valerie Trueblood, Darrel Brown, Leston Trueblood, Rich Gomez, AV, John Paul Mastropaulo Public Hearing Closed at 8:53 p.m.

ACTION: Move to approve the item as recommended
MOTION: Vo SECOND: Grandis
AYES: Bui, Grandis, Vo,
NOES: Constantine, Harper
ABSENT: None
ABSTAIN: None

ADMINISTRATIVE ITEMS

6. Adopt a Resolution Amending the City’s Salary Schedule, and Approving an Amendment to the Memoranda of Understandings
ACTION: Move to approve and Adopt a Resolution Amending the City’s Salary Schedule, and Approving an Amendment to the Memoranda of Understandings MOTION: Grandis SECOND: Constantine
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None
ABSTAIN: None

7. Approve an Employment Contract for the Interim Finance Director Ernestine Jones, as a Retired Annuitant
ACTION: Move to approve and Adopt an Employment Contract for the Interim Finance Director Ernestine Jones, as a Retired Annuitant
MOTION: Vo SECOND: Constantine
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None

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ABSENT: None
ABSTAIN: None

8. Approve an Employment Contract for the Interim Information Technology Manager, Jackeline Luengas-Alwafai, as a Retired Annuitant and Approve a Resolution for a 180- day Wait Period Exception
ACTION: Move to approve an Employment Contract for the Interim Information Technology Manager, Jackeline Luengas-Alwafai, as a Retired Annuitant and Approve a Resolution for a 180-day Wait Period Exception MOTION: Constantine SECOND: Vo
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None
ABSTAIN: None

COUNCIL MEMBER ITEMS FOR FUTURE CONSIDERATION

CITY COUNCIL/ SUCCESSOR AGENCY/ HOUSING AUTHORITY/ PUBLIC COMMENTS (Unscheduled Matters Only)
None
CITY COUNCIL/SUCCESSOR AGENCY/HOUSING AUTHORITY AB 1234/GENERAL COMMENTS Council Member Bui
March 20 Attended the Miss Fountain Valley Scholarship Program March 26 Traveled to Poland as a representative of Rotary to work with other Rotarians on the humanitarian crisis in Ukraine
Council Member Vo
Council Member Grandis
March 17 Attended the Community Foundation Board Meeting and Volunteer dinner March 18 Attended the Fountain Valley Connect Breakfast March 19 Attended the Women’s Club Murder Mystery Dinner March 20 Attended the Miss Fountain Valley Scholarship Program March 22 Attended the Boys and Girls Club of Huntington valley Board of Directors Meeting March 24 Attended the Fountain Valley Regional Hospital Governing Board Meeting March 25 Attended the Fountain Valley Regional Hospital Management lunch March 30 Attended the Chamber of Commerce Business and Leadership Awards

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March 31 Attended the homeless meeting with County Supervisor Andrew Do April 5 Attended the Chamber luncheon with Orange County DA Todd Spitzer Mayor Pro Tem Constantine
March 17 I participated in the OC Vector Control Monthly Meeting via Zoom.

March 20 I attended the Miss Fountain Valley Scholarship Competition at Goldenwest College, Huntington Beach.

March 22 I watched the OC Board of Supervisors Meeting live on their website.

March 24 I viewed the Legislative Briefing: Bill Introduction on Zoom, the PFAS Meeting on Zoom, and the SARFPA Meeting (Santa Ana River Floor Protection Agency Meeting) on Zoom, then stopped in to the new Loan Depot, as they had their Grand Opening.

March 25 I stopped in at the Pickleball Academy Tournament – a 3-day event.

March 26 Attended the Republic Services Compost Giveaway, for our FV residents, at the FV Sports Park.

March 27 Attended the Historical Society Luncheon at Heritage Park.

March 29 Viewed the HER Story (Equity in the Boardroom) Presentation by CA Insurance on Zoom, then attended the Green Valley Community Board Meeting that evening.

March 30 Attended the Fountain Valley Chamber of Commerce Business Awards at Founders Village.

April 2 Attended the Holistic Health Fair at Remix.

April 5 Attended the Fountain Valley Chamber of Commerce Luncheon in which OC District Attorney was the Speaker.

Mayor Harper

ADJOURN THE MEETING OF THE CITY COUNCIL/SUCCESSOR AGENCY/HOUSING

AUTHORITY

Mayor Harper adjourned the meeting at 10:16 pm to the next Meeting of the Fountain Valley City Council on April 19, 2022 at 6:00 p.m., in the Fountain Valley Council Chambers, 10200 Slater Avenue, Fountain Valley.
________________________________________________________________________________________________________________________________ Patrick Harper, Mayor
Attest:
___________________________
Rick Miller, City Clerk

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CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: April 19, 2022
Members of the City Council
SUBJECT: Second Reading and Adoption of an Ordinance Approving Zoning Map Amendment 433 and an Ordinance approving Code Amendment 21-01 for the Slater Avenue Mixed-Use Project located at 10201, 10221, and 10231 Slater Avenue
EXECUTIVE SUMMARY:

At its meeting of April 5, 2022, the City Council introduced for a first reading an Ordinance approving Zoning Map Amendment (ZMA) 433 and an Ordinance approving Code Amendment (CA) 21-01 for the Slater Avenue Mixed-Use Project (“Project”) located at 10201, 10221, and 10231 Slater Avenue (Attachment No. 2 and No. 3). The Ordinance was approved by a vote of 3-2 during the first reading without Amendment.

As detailed in the attached Staff Report (Attachment No. 1), the Ordinance approving ZMA 433 would change the zoning for the Project site from C1 – Local Business to MU-1 MixedUse 1 District and the Ordinance approving CA 21-01 to create a Mixed-Use Zoning District that includes specific zoning standards for mixed-use zones including permitted uses, development standards, exceptions, and definitions. In addition to the ZMA and CA, at the City Council Meeting of April 5, 2022 the City Council also approved a Resolution approving a MND and MMRP in accordance with CEQA for the project as well as a Resolution approving General Plan Amendment 21-01 to change the General Plan Land Use Designation of the Project site from General Commercial to Mixed Use 1.

The Ordinances for ZMA 433 and CA 21-01 are now presented to the City Council for a second reading and adoption.

ENVIRONMENTAL REVIEW:

The California Environmental Quality Act (CEQA) requires analysis of agency approvals of discretionary “projects”. A “project,” under CEQA, is defined as “the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.” The proposed project is considered a project under CEQA.

Slater Investments elected to conduct their own environmental review for the project and submitted a Mitigated Negative Declaration completed by EPD Solutions for the City’s review.

On August 24, 2021, city staff sent out a Request for Proposals via PlanetBids to conduct a peer review of the MND for the Project that was provided to the city. The city selected DeNovo Planning Group (“DeNovo”) to peer review the MND and any Response to Comments the city may receive during the public review period of the MND. On November 4, 2021, the city

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Council Action Request
Second Reading – Adoption of an Ordinance approving Zoning Map Amendment 433 and Code Amendment 21-01 for the Slater Avenue Mixed-Use Project City Council Meeting April 19, 2022

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executed a contract with DeNovo and Slater Investments deposited the peer review contract costs with the city to cover the contract cost.

The MND was published for the required 20-day comment period beginning on February 4, 2022 to February 24, 2022.

During the 20-day comment period on the MND, the city received three (3) comment letters.

These comment letters are included in the Response to Comments Document and are concerned with the review areas of air quality, greenhouse gas emissions, hazards and hazardous materials, and transportation. Through the city’s review, and review from the city’s peer review contractor, DeNovo Planning Group, all comments were addressed sufficiently in the Response to Comments document and were not deemed significant enough to warrant the preparation of revisions to the MND, as they will not change the analysis or conclusions of the MND. The MND includes a MMRP document to help staff track the applicant’s progress in meeting each mitigation measure required by the MND.

Prior to action on the entitlements, the City Council considered and approved a Resolution approving the MND and the MMRP by a vote of 3-2 at the regularly scheduled City Council meeting of April 5, 2022.

FINANCIAL ANALYSIS:

Per the proposed FVMC 21.15.040 Table 2-11 “Mixed-Use District General Development Standards” each project shall provide a minimum non-residential floor area of 10% of the ground floor footprint. This is required to ensure the commercial fiscal sustainability of each project. Footnote 6 of Table 2-11 states, “A fiscal analysis will be required to show long-term fiscal benefit. If necessary, the minimum non-residential area shall be adjusted upwards to ensure a positive fiscal benefit to the community.”
With the Planning Commission’s approval of Waiver #1, the Project will provide 9.14 percent of the ground floor in interior retail use and will be 91.4 percent compliant with the code requirement.

The applicant provided a fiscal analysis that was reviewed by the Finance Director. The analysis shows that the Project will provide a total of $340,004 in annual fiscal revenue, as opposed to the $119,335 that is currently being generated from the Project area for an increase of $220,669. Per the Directors review, the applicants’ calculations on property tax, sales tax, and other revenue sources are accurate and their methodology is sound.

Moreover, the fiscal analysis includes the Project’s 5,000 square foot restaurant with 2,000 square foot outdoor dining space, but does not include the proposed 1,660 art gallery that was added to the Project just a few months ago. Therefore, the projected fiscal revenue will only be larger.

Additionally, per FVMC 21.79 and 21.39, the developer shall pay a Park Facilities Fee in the amount of $8,282 per residential unit. Residential units identified as affordable (33 units) are exempt from paying Park Facilities Fees. Therefore, for the purposes of this fee, 237 of the proposed 270 units are identified as applicable to the Park Facilities Fee. The fee is $1,962,834.

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ATTORNEY REVIEW:

The Attorney for the City has reviewed the attached Ordinances.

PUBLIC NOTIFICATION:

The item was published in the Fountain Valley View and public notices were mailed to owners of record within 500’ of the project site as well as emailed to email interest list participants and notice posted at City Hall, Recreation Center, and Fountain Valley Library for the public hearing on April 5, 2022. The Council hearing was additionally advertised on “Fountain Valley channel 3”, the Public Cable Television Authority, as a public service to the Community and consistent with City Council policy for such noticing.

ALTERNATIVES:

1. Adopt the attached Ordinances of the City Council of the City of Fountain Valley approving Zoning Map Amendment 433 to change the zoning map designation from C1 – Local Business to MU-1 – Mixed-Use 1 District for the Project located at the northeast corner of San Mateo Street and Slater Avenue (10201, 10221, and 10231 Slater Avenue) and approving Code Amendment 21-01 to create a Mixed-Use Zoning District that includes specific zoning standards for mixed-use zones including permitted uses, development standards, exceptions, and definitions for the Project located at the northeast corner of San Mateo Street and Slater Avenue (10201, 10221, and 10231 Slater Avenue).

2. Do not adopt the attached Ordinance of the City Council of the City of Fountain Valley approving Zoning Map Amendment 433 to change the zoning map designation from C1 – Local Business to MU-1 – Mixed-Use 1 District for the Project located at the northeast corner of San Mateo Street and Slater Avenue (10201, 10221, and 10231 Slater Avenue) and approving Code Amendment 21-01 to create a Mixed-Use Zoning District that includes specific zoning standards for mixed-use zones including permitted uses, development standards, exceptions, and definitions for the Project located at the northeast corner of San Mateo Street and Slater Avenue (10201, 10221, and 10231 Slater Avenue).

3. Continue the request for additional information.

RECOMMENDATION:

Staff recommends that the City Council select Alternative No. 1 – Adopt the attached Ordinances of the City Council of the City of Fountain Valley approving Zoning Map Amendment 433 to change the zoning map designation from C1 – Local Business to MU-1 – Mixed-Use 1 District for the Project located at the northeast corner of San Mateo Street and Slater Avenue (10201, 10221, and 10231 Slater Avenue) and approving Code Amendment 21-01 to create a Mixed-Use Zoning District that includes specific zoning standards for mixed-use zones including permitted uses, development standards,

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exceptions, and definitions for the Project located at the northeast corner of San Mateo Street and Slater Avenue (10201, 10221, and 10231 Slater Avenue).

Prepared By: Steven Ayers, Principal Planner
Reviewed By: Teresa Gonzalez, Accounting Manager
Approved By: David Crabtree, Interim Planning and Building Director Approved By: Raul Godinez II, Interim City Manager
Attachment 1: April 5, 2022 Staff Report
Attachment 2: An Ordinance of the City Council of the City of Fountain Valley approving Zoning Map Amendment 433 to change the zoning map designation from C1 – Local Business to MU-1 – Mixed-Use 1 District for the Project located at the northeast corner of San Mateo Street and Slater Avenue (10201, 10221, and 10231 Slater Avenue)
Attachment 3: An Ordinance of the City of Fountain Valley approving Code Amendment 21-01 to create a Mixed-Use Zoning District that includes specific zoning standards for mixed-use zones including permitted uses, development standards, exceptions, and definitions for the Project located at the northeast corner of San Mateo Street and Slater Avenue (10201, 10221, and 10231 Slater Avenue)

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CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: April 5, 2022
Members of the City Council
SUBJECT: Public Hearing and Introduction: General Plan Amendment 21-01, Zoning Map Amendment 433, Code Amendment 21-01, Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program for the Slater Avenue Mixed-Use Project located at 10201, 10221, and 10231 Slater Avenue

EXECUTIVE SUMMARY
Slater Investments, LLC (“Applicant” or “Slater”) has submitted a request to construct a one to five-story mixed-use development with 270 residential units, a 5,000 square foot restaurant with 2,000 square feet of outdoor dining space, a walk-up coffee and lunch bar, a 1,660 square foot art gallery, a 6-level parking garage, and associated amenities on a 3.34 acre project site located at the northeast corner of San Mateo Street and Slater Avenue (10201, 10221, and 10231 Slater Avenue (“Project”).

Requested entitlements that require the approval by the City Council include:
 General Plan Amendment (GPA) 21-01 to change the land use designation of the Project site from General Commercial to Mixed Use 1;
 Zoning Map Amendment (ZMA) 433 to change the zoning designation of the Project site from C1 – Local Business to MU-1 – Mixed-Use 1 District;  Development Code Amendment (CA) 21-01 to create a Mixed-Use Zoning District that includes specific zoning standards for mixed-use zones including permitted uses, development standards, exceptions, and definitions;
 Mitigated Negative Declaration (MND) for the project per CEQA Guidelines Section 15074.

The proposal also includes acknowledgement of a density bonus from the maximum 65 dwelling units per acre to 81 dwelling units per acre and the reservation of 15 percent of its base units as affordable to low income households.

Additional Project entitlements that were approved by the Planning Commission on March 9, 2022, and do not require action by the City Council include:
 Precise Plan (PP) 562 for the development of the proposed Project. Per FVMC 21.44, a Precise Plan is required for the development of any proposed structures in the city, except for structures in the R1 zoning district. This approval was provided by the Planning Commission at its meeting on March 9, 2022, and would only go on for Council action if appealed.

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Council Action Request
General Plan Amendment 21-01, Zoning Map Amendment 433, Code Amendment 21-01, Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program City Council Meeting April 5, 2022

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The Project proposes a one to five-story mixed-use development with 270 residential units, a 5,000 square foot restaurant with 2,000 square feet of outdoor dining space, a walk-up coffee and lunch bar, a 1,660 square foot art gallery, a 6-level parking garage, and associated amenities on a 3.34 acre Project site.

The Project was reviewed by the Planning Commission on March 9, 2022 and by a vote of 5- 0, the Planning Commission recommended the City Council approve the MND and MMRP for the project per CEQA Guidelines Section 15074. By a vote of 4-1 the Planning Commission recommended the City Council approve GPA 21-01, ZMA 433, and CA 21-01, and by a vote of 4-1 the Planning Commission approved PP 562.

Staff recommends the City Council conduct a public hearing and:
 Approve the attached Resolution approving the MND and MMRP (Attachment #1);  Approve the attached Resolution approving GPA 21-01 to change the land use designation of the Project site from General Commercial to Mixed Use 1 (Attachment #2); and
 Introduce the attached Ordinance approving ZMA 433 to change the zoning for the Project site from C1 – Local Business to MU-1 – Mixed-Use 1 District (Attachment #3); and
 Introduce the attached Ordinance approving CA 21-01 to create a Mixed-Use Zoning District that includes specific zoning standards for mixed-use zones including permitted uses, development standards, exceptions, and definitions (Attachment #4).

PROPOSAL
The Applicant has submitted a request to construct a one to five-story mixed-use development with 270 residential units, a 5,000 square foot restaurant with 2,000 square feet of outdoor dining space, a walk-up coffee and lunch bar, a 1,660 square foot art gallery, a 6- level parking garage, and associated amenities on a 3.34 acre project site located at the northeast corner of San Mateo Street and Slater Avenue (10201, 10221, and 10231 Slater Avenue.

Requested entitlements include:
(1) General Plan Amendment (GPA) 21-01 to change the land use designation of the Project site from General Commercial to Mixed Use 1;
(2) Zoning Map Amendment (ZMA) 433 to change the zoning designation of the Project site from C1 – Local Business to MU-1 – Mixed-Use 1 District; (3) Development Code Amendment (CA) 21-01 to create a Mixed-Use Zoning District that includes specific zoning standards for mixed-use zones including permitted uses, development standards, exceptions, and definitions;
(4) Precise Plan (PP) 562 for the development of the proposed Project. Per FVMC 21.44, a Precise Plan is required for the development of any proposed structures in the city, except for structures in the R1 zoning district;
(5) and a Mitigated Negative Declaration (MND) for the project per CEQA Guidelines Section 15074.

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Code Requirements
The following entitlements that are required by the Fountain Valley Municipal Code (FVMC) to construct the Project:

1. General Plan Amendment – FVMC 21.34 requires the approval of a GPA for revisions to actions, goals, land use designations, policies or text within the General Plan. The Project includes a revision to the land use designation of the property from General Commercial to Mixed Use 1 for the property located at 10201, 10221, and 20131 Slater Avenue.

2. Zoning Map Amendment – FVMC 21.34 requires the approval of a ZMA when rezoning property from one zoning district to another. The Project includes a revision to the Fountain Valley Zoning Map from C1-Local Business to MU-1 – Mixed-Use 1 District.

3. Code Amendment – FVMC 21.34 requires the approval of a CA when the amendment may modify procedures, requirements or standards applicable to the development, and/or use of property within the city. The Project includes a CA to create a MixedUse Zoning District that includes specific zoning standards for mixed-use zones including permitted uses, development standards, exceptions, and definitions;

4. Precise Plan – FVMC 21.44 requires a PP for Structures in the city, except for structures in the R1 zoning district. The Project proposes a one to five-story mixeduse development with 270 residential units, a 5,000 square foot restaurant with 2,000 square feet of outdoor dining space, a walk-up coffee and lunch bar, a 1,660 square foot art gallery, a 6-level parking garage, and associated amenities on a 3.34 acre Project site. This approval was provided by the Planning Commission at its meeting on March 9, 2022, and would only go on for Council action if appealed.

5. Mitigated Negative Declaration – FVMC 21.32.060 requires that after the acceptance of a completed application, the Project shall be reviewed in compliance with the FVMC, the California Environmental Quality Act (CEQA), and the city’s environmental review procedures, to determine the level of level of environmental review per CEQA. An initial study was performed by Environmental Planning Development Solutions (“EPD”) that was reviewed by City Staff, and peer reviewed by the city’s environmental review contractor, DeNovo Planning Group (“DeNovo”), to determine that a Mitigated Negative Declaration (MND) was the appropriate level of CEQA review for the Project.

Background and Project Location Information
The project site is located at 10201, 10221, and 10231 Slater Avenue, which is located within the central portion of the City of Fountain Valley, north of Interstate 405 (I-405), and east of Brookhurst Street.

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The project site encompasses approximately 3.34 acres and is currently developed with three commercial/office buildings that include Silky Sullivan’s restaurant, a one-story plus mezzanine building that is approximately 6,500 square feet and was constructed in 1967, and two two-story office buildings that total 52,000 square feet that were constructed in 1974. The two-story office buildings provide 52 tenant spaces. Surface parking lots with ornamental landscaping surround the buildings. The site is bounded by a sidewalk along the three sides of the site that are adjacent to roadways and by carports for the adjacent multi-family residences to the west.

DISCUSSION
Slater has submitted a request to construct a one to five-story mixed-use development with 270 residential units, a 5,000 square foot restaurant with 2,000 square feet of outdoor dining space, a walk-up coffee and lunch bar, a 1,660 square foot art gallery, a 6-level parking garage, and associated amenities on a 3.34 acre project site located at the northeast corner of San Mateo Street and Slater Avenue (10201, 10221, and 10231 Slater Avenue), as provided in the project description and proposed plan details, see (Attachment #5 and #6).

The project includes the following applications per the FVMC:
• Per FVMC 21.34, a GPA is required for a change in land use designation from General Commercial to Mixed Use 1 for the Project site (The Planning Commission recommended this action for City Council approval at its meeting of March 9, 2022). • Per FVMC 21.34, a ZMA is required to rezone the Project site from C1-Local Business to MU-1 – Mixed-Use 1 District (The Planning Commission recommended this action for City Council approval at its meeting of March 9, 2022). • Per FVMC Chapter 21.34, a Code Amendment is required to create a Mixed-Use Zoning District that includes specific zoning standards for mixed-use zones including permitted uses, development standards, exceptions, and definitions (The Planning Commission recommended this action for City Council approval at its meeting of March 9, 2022).
• Per FVMC Chapter 21.44, a PP is required for the development of any proposed structures in the city, except for structures in the R1 zoning district (An approval action was taken by the Planning Commission at its March 9, 2022 meeting and that approval is contingent upon City Council approval of General Plan, Zoning Map, and Code Amendments).
• Approval of a MND and Mitigation Monitoring and Reporting Plan (MMRP) to address the environmental impacts associated with this Project (The Planning Commission recommended this action for City Council approval at its meeting of March 9, 2022).

Amendments
The Applicant’s requested CA includes the creation of a new Mixed-Use Zoning District code that includes specific zoning standards for mixed-use zones including permitted uses, development standards, exceptions, and definitions for two different mixed-use areas (MU-1 and MU-2) (Attachment #4). The difference between the MU-1 and MU-2 codes is based on

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the size of the property – MU-1 for sites 1-5 acres and MU-2 for sites 5.01 acres or larger.

This new code will coincide with the requested GPA and ZMA for the Project that will also be introduced as a new General Plan Amendment and Zoning Map designation for other parts of the city through the efforts of the General Plan Update that will be introduced to the Planning Commission and City Council later this year. Efforts to create this new General Plan land use designation and Zoning Map designation will help facilitate a way of helping sustain commercial development in the city while allowing opportunities for residential development to help reach the City’s RHNA allocation of 4,839 units. The Project site is one of 11 identified opportunity sites that have been identified through the General Plan Update Process for residential development to help reach the city’s RHNA allocation.

Precise Plan
The Project also includes a PP as required by the FVMC since it includes the development of a proposed structure in the city that is not located in the R1 zoning district—this application was approved by the Planning Commission at its meeting of March 9, 2022 and is contingent upon the City Council’s approval of the related General Plan Amendment, Zoning Map Amendment and Code Amendment. The proposed structure includes a one to five-story mixed-use development with 270 residential units, a 5,000 square foot restaurant with 2,000 square feet of outdoor dining space, a walk-up coffee and lunch bar, a 1,660 square foot art gallery, a 6-level parking garage, and associated amenities.

The mixed-use development is the first of its kind in the City of Fountain Valley and is subject to development standards that do not currently exist, but are proposed in the CA, that include permitted uses, development standards, exceptions, and definitions.

For the Proposed Project, multi-family dwellings, and art galleries are permitted by right.

Large Format Restaurants are permitted with the approval of a Conditional Use Permit (CUP).

The applicant has acknowledged that they are aware of this requirement and have elected to make the future operator of the restaurant apply for the CUP.

The CA includes an array of new development standards that will allow for mixed use and overall building density that is much larger than exists in the city today. Currently, the largest residential density permitted in the FVMC is 30 dwelling units per acre (du/ac) and the largest Floor Area Ratio (FAR) (building area compared to lot size) permitted is 0.5 FAR. The CA proposes to allow up to 65 du/ac and up to 2.25 FAR in the MU-1 zone. While this may appear to be a noticeable jump in development size in Fountain Valley, many other development standards that are proposed in the CA will help limit or affect the appearance of density in the MU zones including upper level step-backs, height modulation, open space requirements, façade and massing variation, and building separations. An explanation of each can be found below:
 Upper level step-backs – The minimum distance that the main exterior walls of the upper portion of a building that is located above the specified baseline height are setback from the exterior wall of the lower portion of the building.  Height modulation – The variation of height either by varying roof heights along a building elevation, averaging roof heights throughout the development (may allow building to exceed the baseline height in the zone), or a corner prominent feature that

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is differentiated by height and design features from the primary massing by a minimum distance of 10 feet.
 Open space requirements – Open space accessible to the public and exclusive to onsite residents that equals 10% of the gross site area less than 2 acres or 15% of the gross site area more than 2 acres plus 100 square feet per residential unit. Publicly accessible open space shall comprise 50% of the required open space and located along street frontages or directly accessed from a public sidewalk. Private open space may be provided as additional publicly accessible open space, common open space for residents only, or private balconies and patios.
 Façade and massing variation – Recesses and projections of the façade in combination with changes in colors, materials, and articulation to help create the desired quality and visual interest. In every building frontage, at least one of the following elements shall be incorporated:
o Modulation - Major recess/projection of at least 2’ depth and 4 ft. in width every 150 linear ft. plus a minor recess/projection of at least 1’ depth and 2 ft. in width every 50 linear ft.
o Delineation of the base, middle, and top:
 Change in materials (acceptable street level materials include a preponderance of brick, wood, stone, or similar detailed materials.

Above the first floor, no more than 80% of an elevation may be clad in EIFS or stucco), or
 Design that creates distinct vertical and horizontal visual separation through color, material, cornice trim, and/or awnings, or  Upper level step-backs.
 Building separation - A building separation shall be provided on each street facing building elevation of 250 linear feet or more through at least one of the following means:
o A building separation of an average width of 40 ft. and an average depth of 25 ft. with a minimum 1,200 sf of area that extends to the street level and is open to the sky; or
o A building separation that begins at the second floor of an average width of 40 ft. and an average depth of 20 ft. that is open to the sky. The ground level floor within the separation area must be setback an average of 5 ft. from the main building façade.

An analysis of the new code development standards, and how the Project meets those requirements, can be found in Attachment #7 to this Staff Report. The analysis notes the Project meets all proposed development standards in the CA except for Upper Level Stepbacks, Minimum 10 percent ground floor retail, minimum residential storage requirement,

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minimum publicly accessible open space, and minimum residential unit square footage requirement. The Project includes concessions or waivers to these code requirements as permitted by State Density Bonus Law (see section below).

Project Affordable Units, Density Bonus, Concession, and Waivers The Project is proposed to be built with the inclusion of affordable units and is therefore permitted to request a density bonus, consistent with State law. State law additionally provides the project with concessions and waivers to the City’s development standards, including relief from City parking requirements. The proposed density level of the Project is permitted with a maximum 65 dwelling units per acre; however, the Project will be built to 81 dwelling units per acre with a Density Bonus. The Projects’ reservation of 15 percent of its base units as affordable to low income households earning less than 80 percent of the County median income, which equates to 33 on-site affordable units, will allow for up to a 27.5 percent density bonus pursuant to State Density Bonus Law consistent with Government Code Sections 65915-65918. Although State Density Bonus Law allows for a 60 unit density bonus, the Applicant has elected to construct only 53 density bonus units for a density bonus of 24.4 percent. State Density Bonus Law allows one concession and unlimited waivers for the type of development proposed in which a certain number of the “base” units are restricted for low income households and the applicant has requested and is granted one concession and five waivers to the zoning standards for the Project including:
 Concession #1 - An increase in the upper level step-back height of 35-feet for a mixed-use project as established in the proposed Code Amendment 21-01 “FVMC 21.15 Mixed-Use Zoning Districts” to 45 feet.
 Waiver #1 - A reduction in the minimum 10 percent ground floor retail (7,290.5 square feet) for a mixed-use project as established in the proposed Code Amendment 21-01 “FMVC 21.15 Mixed-Use Zoning Districts” to 9.14 percent ground floor retail (6,660 square feet). The ground floor of the Project is 72,905 square feet and 10 percent of the ground floor would be 7,290.5 square feet. The Project will provide 6,660 square feet of interior ground floor retail space.

Therefore, the Project will provide 9.14 percent of the ground floor in interior retail use and will be 91.4 percent compliant with the code requirement.
 Waiver #2 - A decrease in the minimum residential storage requirement of 200 cubic feet per unit (270 units) for a mixed-use project as established in the proposed Code Amendment 21- 01 “FVMC 21.15 Mixed-Use Zoning Districts” to 200 cubic feet per unit for 221 units.

Therefore, the Project will be 81.85 percent compliant wth the code requirement.  Waiver #3 - A decrease in the minimum publicly accessible open space requirement of 50% of the required open space (48,824 sf x 50% = 24,412 square feet) for a mixed-use project as established in the proposed Code Amendment 21-01 “FVMC 21.15 Mixed-Use Zoning Districts” to 9,324.9 square feet. The publicly accessible open space will be 38.2 percent compliant with the code requirement (9,324.9 sf / 24,412 sf).  Waiver #4 - A 10 percent reduction in the minimum square footage of 750 square feet for 1- bedroom units for a mixed-use project as established in the proposed Code Amendment 21- 01 “FVMC 21.15 Mixed-Use Zoning Districts” resulting in 91 of the 129 1-bedroom units not meeting the requirement. Per FVMC 21.15.040 Table 2-11 the minimum square footage of a 1-bedroom unit shall be 750 square feet. A 10 percent reduction would allow 1-bedroom units

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at 675 square feet (750 sf – 10%). Footnote (8) of Table 2-11 allows for the consideration of smaller unit sizes with taller ceiling heights as a waiver/concession as a way to increase affordability and maintain quality. The 91 units under this waiver will provide 9’0” tall ceilings.

Parking
Parking considerations for the proposed project have received discussion throughout the plan development process as well as public review period and additional information is provided here to assist the Council’s review.

The project includes a parking structure with 541 parking spaces. Of these, 485 spaces are allotted to the residential portion of the project and 56 to the commercial component. As the project incorporates affordable housing, it is subject to State Density Bonus Law (Government Code Sec. 65915) limitations on parking. Density Bonus Law prohibits local governments from requiring parking in excess of one space for each studio or one-bedroom unit and 1.5 spaces for each two- or three-bedroom unit (Sec. 65915(p)(1)). No additional parking may be required for guests. The commercial component of the project is not governed by Density Bonus regulations; instead, the policies of Fountain Valley’s MU-1 zone will apply.

The table below details the required parking spaces compared to those provided. As shown, the project contains 177 more spaces than required than Density Bonus Law and local regulations, as applicable. The residential component contains an excess 163 spaces, including 68 guest spaces. Commercial uses have an excess of 14 spaces as compared to City zoning standards for the MU-1 zone.

Unit Type Number
of Units
Required
Parking
Rate per
Unit*/**
Required
Parking
Provided
Parking
Excess/(Deficit)
Residential -
Studio
37 units 1.0 37 37 0
Residential - 1
Bedroom
129 units 1.0 129 194 65
Residential - 2
Bedrooms
100 units 1.5 150 175 25
Residential - 3
Bedrooms
4 units 1.5 6 8 2
Residential -
Leasing Office
0 0 3 3
Residential -
Guest
0 0 68 68
Commercial –
Restaurant
5,000 sq.
ft.
5/1000 sq. ft. 25 35 10
Commercial –
Outdoor Eating
2,000 sq.
ft.
5/1000 sq. ft. 10 14 4
Commercial – Art
Gallery
1,660 sq.
ft.
4/1000 sq. ft. 7 7 0
TOTAL 364 541 177
* Residential parking rate based on Government Code Section 65915(p)(1) ** Commercial parking rate based on MU-1 zone.

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The project will include accessible and electric vehicle stalls to meet or exceed local and State regulations. The project will have on-site management and security to regulate parking. If needed, lease agreements for future residents may require vehicle registration and limit the number of vehicles permitted to ensure adequacy of parking and avoid off-site parking. The City will continue to enforce on-street parking regulations.

General Plan Update and General Plan Advisory Committee (GPAC) As previously mentioned, the City is currently engaged in a comprehensive update to its General Plan, including the Housing Element of the GP. These efforts have been on-going for several years and have included a review of “opportunity sites” to help achieve GP goals including State mandates to provide additional housing opportunities within Fountain Valley.

The project site has been included within those considerations and the proposed change to land use for the project site has been discussed and considered on several occasions with the City GPAC and community. The proposed Housing Element of the GP includes this site as having the potential for the level of density proposed by the applicant within a mixed-use land use approach.

The Draft Housing Element has been provided to the State Department of Housing and Community Development (HCD) and is anticipated to be approved by the City Council later this year.

ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) requires analysis of agency approvals of discretionary “projects”. A “project,” under CEQA, is defined as “the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.” The proposed project is considered a project under CEQA.

Slater Investments elected to conduct their own environmental review for the project and submitted a Mitigated Negative Declaration completed by EPD Solutions for the City’s review.

The complete MND is attached to this report, as an Exhibit to the draft MND resolution. The MND was published for the required 20-day comment period beginning on February 4, 2022 to February 24, 2022.

During the 20-day comment period on the MND, the city received three (3) comment letters.

These comment letters are included in the Response to Comments Document (Attachment #1) and are concerned with the review areas of air quality, greenhouse gas emissions, hazards and hazardous materials, and transportation. Through the city’s review and review from the city’s peer review contractor, DeNovo Planning Group, all comments were addressed sufficiently in the Response to Comments document and were not deemed

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significant enough to warrant the preparation of revisions to the MND, as they will not change the analysis or conclusions of the MND.

MND and Mitigation Measures
The MND determined that the Project may have a potential significant effect on the environment that, however, will be mitigated to a level that is less than significant with the Mitigation Measures included in the Mitigation Monitoring and Reporting Program (MMRP).

Where the application of these measures does not reduce an impact to below a level of significance, a project-specific mitigation measure is introduced. Additionally, the MND identifies existing Plans, Programs, and Policies (PPP’s) which are identified to show their effect in reducing potential environmental impacts per existing federal, state, and local law.

The PPP’s are included along with the mitigation measures in the Mitigation Monitoring and Reporting Program (MMRP) for the project to ensure their implementation, and as contained within the Appendix to the MND. These include specific mitigation measures outlined to assure for compliance within the following areas of the CEQA review:
 Aesthetics (lighting)
 Air Quality
 Biological Resources
 Cultural Resources
 Geology and Soils
 Green House Gas Emissions
 Hazards and Hazardous Materials
 Hydrology and Water Quality
 Noise
 Public Services
 Recreation
 Transportation
 Tribal Resources
 Utilities and Service Systems
 Wildfires
Traffic
Although not identified as creating significant environmental impacts, the potential for traffic impacts from the project have been a key concern for residents expressing interest in the proposal. Impacts related to traffic resulting from operation of the project were discussed in the MND and its Traffic Impact Analysis provided within Appendix H. The proposed Project will operate with a traffic generation of 994 net trips per day with 53 trips in the am peak hours and 45 trips in the pm peak hour. These trips are accommodated within the capacity available on the current roadway system. A Level of Service (LOS) analysis was additionally performed for traffic signals in the project vicinity and the anticipated project + cumulative traffic remains within acceptable thresholds established by the General Plan for all intersections, with signal and striping improvements which will be provided by the project applicant and conditioned upon any project approval. Additionally, a Vehicle Miles Traveled (VMT) analysis was conducted for the Project, as required by CEQA, and found that the site is located in a low VMT generating area generating VMT’s of 0 to 15 percent below the citywide averaging of

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27.51 VMT/service population (population plus employment). Thus, pursuant to the City’s screening thresholds, the Project would have a less than significant impact related to VMT.

In summary, while the project is anticipated to result in changes to traffic in the area, it is not anticipated to create significant impacts as defined and evaluated consistent with CEQA guidelines.

PLANNING COMMISSION DELIBERATION AND ACTIONS:

The Planning Commission conducted its public hearing on the subject actions at its meeting of March 9, 2022. The Commission voted 5-0 to recommend approval of the Mitigated Negative Declaration to the City Council. It additionally voted 4-1 to recommend approval of the related General Plan Amendment, Zoning Map Amendment, and Code Amendment to the City Council. Finally, it voted 4-1 to approve the Precise Plan for the specific proposed development plans and specifications and adopted Conditions of Approval—these conditions of approval include a condition that the Precise Plan approval is contingent upon the City Council’s subsequent approval of the related General Plan Amendment, Zoning Map Amendment, and Code Amendment.

The Commission’s deliberations included a focus upon the proposed Code Amendment and direction to Staff to provide the City Council background regarding the proposed building height standard as well as information on how other nearby cities handle height limits in their codes.

The proposed Mixed Use standards provide the following language regarding building height:

Requirement by Zoning District
Development
Feature MU-2 (14) MU-1
Height (1) (3) A baseline height is provided for the MU-1 and MU-2 zones and adjustments above the baseline are permitted as provided below:

Baseline
Height 6 stories & 65ft. (see height modulation) 5 stories & 55ft. (see height modulation) Height
Modulation (9)
(12)
A square box is not an acceptable design and the modulation of the heights is required to provide visual interest and reduce the scale of building mass. Accordingly, a proposal shall include a building step-back on the street frontage and at least two of the following elements:
-Height variation: a change in roof heights of at least 10 ft. every 150 linear ft. -Height averaging: Height averaging where a portion of the building may exceed the Baseline Height provided that the height of the entire project is equal to or does not exceed the Baseline Height. Except that within 100 ft. of a R1 & GH Zone, the height of the building shall not exceed 45ft. and within 50 ft. of a R2, R3, & R4 Zone, the height of the building shall not exceed the Baseline Height (above). (12)
-Corner: A ground level plaza or a prominent corner feature that is differentiated by height and design features from the primary massing of the building by a minimum of 10 ft. To qualify, corner feature shall have a measurement of at least 25 linear ft. in each direction.

Notes:
(1) Maximum allowed height of structures. See also Section 21.18.050 (Height measurement and height exceptions). (3) Underground parking and basements with non-habitable space are allowed and are not counted toward the height measurements.

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(9) Elevator and stair overruns shall not be counted as part of the roofline modulation. (12) The purpose of Height Averaging is to allow additional building height above the Baseline Height when it is counterbalanced by lower heights elsewhere in the same building. Height averaging shall not be applied to allow parking or accessory structures to exceed the applicable Baseline Height except when the parking structure is completely wrapped by residential or nonresidential potions of the building to at least the Baseline Height. Additional height above the Baseline Height shall be located on the opposite side of the building from existing residential zones immediately abutting the project site, except for the parking structure in a completely wrapped design. (14) A master plan for the development of the entire area within the boundaries of a MU-2 zoned area or a contiguous MU-2 zoned area shall be required to be approved prior to or in conjunction with the development of any individual parcel or phase within the particular MU-2 zoned area that contains the project. This applies even if individual parcels within the boundaries of a MU-2 zoned area or a contiguous MU-2 zoned area are under separate ownership. While a MU-2 zoned area may develop in phases or as individual parcels smaller than 5 acres, it is intended that MU-2 zoned areas be planned in a cohesive manner per the standards of the MU-2 zone and not as individual and unconnected projects.

A quick review of several other Orange County cities found their codes approach building height in a maximum “not to exceed” traditional standard. As noted above, the proposed code for Fountain Valley takes that more simple height maximum approach a step further, providing code language for averaging or “modulation.” This feature of the proposed standard helps achieve aesthetic goals for varied architecture, allowing building features to vary in their height and providing architects design latitude for creativity. This approach has been something staff have seen within project specific plans, and here we are proposing to codify such standards as a best practice for Fountain Valley.

In its discussions the Commission questioned the height averaging standard, speculating that a more traditional “not to exceed” maximum height limit may offer a clearer, well defined, expression of a standard. However, some Commissioner’s also expressed support for flexibility and appreciated how an averaging standard could also achieve limiting development to an appropriate height while also realizing other benefits. The Commission reached no consensus on one approach to a height standard over another and asked, simply, that Council were made aware of their discussion and related details.

From staff’s perspective the proposed height modulation (i.e. averaging) standard is beneficial toward design flexibility and assistance to achieve architectural variation, while still providing assurance that overall building heights are limited. We note that the standard as drafted retains an absolute limit upon the number of stories—no building within MU 2 district may exceed 6 stories and no building within MU 1 may exceed 5 stories.

As a final note, and as detailed earlier in this report, the Slater Investments project, specifically, benefits from the protections provided under State law and code standard waivers due to its inclusion of affordable housing. In other words, regardless of the outcome of any final adjustments to the proposed code height standard, the Slater Investment’s application, as proposed, complies with State law provisions which cannot be usurped by the City.

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Project Correspondence
The City has received 8 total pieces of correspondence for the Project since the publication of the Planning Commission staff report on March 3, 2022. This correspondence is provided in Attachment #8 to this report.

FINANCIAL ANALYSIS:

The applicant provided a fiscal analysis (Attachment #9) that was reviewed by the Finance Director. The analysis shows that the Project will provide a total of $340,004 in annual fiscal revenue, as opposed to the $119,335 that is currently being generated from the Project area for an increase of $220,669. Per the Directors review, the applicants’ calculations on property tax, sales tax, and other revenue sources are accurate and their methodology is sound.

ATTORNEY REVIEW:

The Attorney for the City has reviewed the attached Resolutions and Ordinances.

PUBLIC NOTIFICATION:

The Council hearing was additionally advertised on “Fountain Valley channel 3”, the Public Cable Television Authority, as a public service to the Community and consistent with City Council policy for such noticing.

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ALTERNATIVES:

1. Adopt the following Resolutions and Introduce the following Ordinances for adoption:
a. Adopt a Resolution approving a Mitigated Negative Declaration (MND) and Mitigation Monitoring and Reporting Program (MMRP) in accordance with the California Environmental Quality Act (CEQA) for General Plan Amendment No. 21-01, Zoning Map Amendment No. 433, Code Amendment No. 21-01, and Precise Plan No. 562 for the Slater Avenue Mixed-Use Project located at the northeast corner of San Mateo Street and Slater Avenue (10201, 10221, and 10231 Slater Avenue) (Attachment #1);
b. Adopt a Resolution approving General Plan Amendment No. 21-01 to change the Land Use Map Designation from General Commercial to Mixed Use 1 (Attachment #2);
c. Introduce an Ordinance approving Zoning Map Amendment No. 433 to change the zoning map designation from C1-Local Business to MU-1 – MixedUse 1 District (Attachment #3); d. Introduce an Ordinance approving Code Amendment No. 21-01 to create a Mixed-Use Zoning District that includes specific zoning standards for mixeduse zones including permitted uses, development standards, exceptions, and definitions (Attachment #4).

2. Continue the request and direct staff to prepare resolutions and ordinances for denial.

3. Continue the request for additional information.

RECOMMENDED ACTION:

Staff recommends that the City Council select Alternative No. 1 – Adopt the following Resolutions and Introduce the following Ordinances for adoption:
a. Adopt a Resolution approving a Mitigated Negative Declaration (MND) and Mitigation Monitoring and Reporting Program (MMRP) in accordance with the California Environmental Quality Act (CEQA) for General Plan Amendment No. 21-01, Zoning Map Amendment No. 433, Code Amendment No. 21-01, and Precise Plan No. 562 for the Slater Avenue Mixed-Use Project located at the northeast corner of San Mateo Street and Slater Avenue (10201, 10221, and 10231 Slater Avenue) (Attachment #1);
b. Adopt a Resolution approving General Plan Amendment No. 21-01 to change the Land Use Map Designation from General Commercial to Mixed Use 1 (Attachment #2);
c. Introduce an Ordinance approving Zoning Map Amendment No. 433 to change the zoning map designation from C1-Local Business to MU-1 – MixedUse 1 District (Attachment #3); d. Introduce an Ordinance approving Code Amendment No. 21-01 to create a Mixed-Use Zoning District that includes specific zoning standards for mixeduse zones including permitted uses, development standards, exceptions, and definitions (Attachment #4).

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Prepared By: Steven Ayers, Principal Planner
Reviewed By: Jennifer Lampman, Finance Director
Approved By: David Crabtree, Interim Planning and Building Director Approved By: Raul Godinez II, Interim City Manager
Attachments:

1. Resolution approving the MND, Appendices A-J which are available at https://www.fountainvalley.org/409/Current-Projects and in the City Clerks Office, Response to Comments Document, and MMRP

2. Resolution approving GPA 21-01

3. Ordinance approving ZMA 433

4. Ordinance approving CA 21-01

5. Project Description

6. Project Plans that include all Site Plans, Zoning and General Plan Maps, Floor Plans, Parcel Map Plans, Grading and Utility Plans, Project and Park Landscape Plans, Elevation Plans, Floor Plans, and Plan Information Tables

7. Zoning Compliance Analysis

8. Project Support/Opposition Correspondence

9. Fiscal Analysis

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ORDINANCE NO. 1581

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FOUNTAIN VALLEY APPROVING ZONING MAP AMENDMENT NO. 433 TO CHANGE THE ZONING MAP DESIGNATION FROM C1 – LOCAL BUSINESS TO MU1 – MIXED-USE DISTRICT FOR THE PROJECT LOCATED AT THE

NORTHEAST CORNER OF SAN MATEO STREET AND SLATER AVENUE
(10201, 10221, AND 10231 SLATER AVENUE)
WHEREAS, Slater Investments, LLC (“Applicant”) has submitted a request to construct a one to five-story mixed-use development with 270 residential units, a 5,000 square foot restaurant with 2,000 square feet of outdoor dining space, a walk-up coffee and lunch bar, a 1,660 square foot art gallery, a 6-level parking garage, and associated amenities on a 3.34 acre project site located at the northeast corner of San Mateo Street and Slater Avenue (10201, 10221, and 10231 Slater Avenue (“Project”); and WHEREAS the Project includes the following applications in accordance with the Fountain Valley Municipal Code (FVMC):
 Per FVMC 21.34, a General Plan Amendment is required for a change in land use designation from General Commercial to Mixed Use 1 for the approximate

3.34-acre project site.
 Per FVMC 21.34, a Zoning Map Amendment is required to rezone the property from C1 – Local Business to MU-1 – Mixed-Use 1 District.  Per FVMC 21.34, a Development Code Amendment is required to create a Mixed-Use Zoning District that includes specific zoning standards for mixeduse zones including permitted uses, development standards, exceptions, and definitions.
 Per FVMC Chapter 21.44, a Precise Plan is required for the development of any proposed structures in the city, except for structures in the R1 zoning district.
 Per FVMC 21.76.040, a Lot Line Adjustment, or Lot Merger, is required to merge the parcels in the Project into one parcel. This Lot Line Adjustment was approved by the Subdivision Committee on December 13, 2021.  Acknowledgement and Approval of a Density Bonus and Affordable Housing Agreement for the Project.
 Approval of a Mitigated Negative Declaration (MND) and Mitigation Monitoring and Reporting Plan (MMRP) to address the environmental impacts associated with this Project.

WHEREAS, the Project is located at the northeast corner of San Mateo Street and Slater Avenue at 10201, 10221, and 10231 Slater Avenue (APN #’s 169-122-02, 169-122-

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07, and 169-122-08), which is formally described in the legal description attached hereto as “Exhibit A” (“Site”); and
WHEREAS, the General Plan is a long-range, comprehensive blueprint that guides the orderly development and growth of the City of Fountain Valley; and WHEREAS, by its very nature, the General Plan must be updated and refined to reflect changing community needs and attitudes; and
WHEREAS, the draft General Plan Housing Element and Land Use Map, which have been created with years of community input as part of the City’s ongoing comprehensive general plan update, identify the Project site as Mixed Use 1 and the Project is consistent with that direction; and
WHEREAS, the General Plan Amendment would change the General Plan land use designation from General Commercial to Mixed Use 1 to allow for the development of the Project; and
WHEREAS, the Zoning Map Amendment would change the Zoning Map designation from C1 – Local Business to MU-1 – Mixed-Use 1 as shown in “Exhibit B” to align with the change in the General Plan Map land use designation; and WHEREAS, the Code Amendment would create a new Mixed-Use Zoning District that includes specific zoning standards for mixed use zones including permitted uses, development standards, exceptions, and definitions to regulate development within the Mixed-Use Zones; and
WHEREAS, the City has complied with the requirements of the Government Code Section 65300 et seq., the current State of California General Plan Guidelines, and the City’s applicable ordinances with respect to review and consideration of the proposed Project, including the General Plan, Zoning map, and Code Amendments (together “Amendments”); and
WHEREAS, per the California Environmental Quality Act (CEQA), the Fountain Valley Planning Commission first considered the accompanying Mitigated Negative Declaration (MND) and Mitigation Monitoring and Reporting Plan (MMRP) prepared for the Project in a separate action, as contained in Resolution 22-09, at its noticed public hearing on March 9, 2022; and
WHEREAS, the Planning Commission also considered Precise Plan No. 562 in a separate action, as contained in Resolution 22-10, at its noticed public hearing on March 9, 2022; and
WHEREAS, the Fountain Valley Planning Commission considered the Amendments at its noticed public hearing on March 9, 2022; and
WHEREAS, per the California Environmental Quality Act (CEQA), the Fountain Valley Planning Commission recommended the City Council approved the accompanying

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MND and MMRP prepared for the Project in a separate action, as contained in Resolution 22-09, by a vote of 5-0 at its noticed public hearing on March 9, 2022; and WHERAS, the Planning Commission recommended the City Council approve General Plan Amendment 21-01, Zoning Map Amendment No. 433, and Code Amendment No. 21-01 as contained in Resolution No.22-11 by a vote of 4-1 at its noticed public hearing on March 9, 2022; and
WHEREAS, the Planning Commission approved Precise Plan No. 562 in a separate action, as contained in Resolution 22-10, by a vote of 4-1 at its noticed public hearing on March 9, 2022, contingent upon City Council approval of General Plan Amendment 21-01, Zoning Map Amendment No. 433, Code Amendment No. 21-01, and the MND and MMRP; and
WHEREAS, the City Council considered the Project and Amendments at its noticed public hearing on April 5, 2022; and
WHEREAS, per the California Environmental Quality Act (CEQA), the City Council of the City of Fountain Valley first considered the accompanying MND and MMRP prepared for the Project in a separate action, as contained in Resolution 9824, at its noticed public hearing on April 5, 2022; and
WHEREAS, the City Council considered General Plan Amendment No. 21-01, an amendment that would change the General Plan land use designation from General Commercial to Mixed Use 1 to allow for the development of the Project at its noticed public hearing on April 5, 2022; and
WHEREAS, the City Council first considered Zoning Map Amendment No. 433 at its noticed public hearing on April 5, 2022; and
WHEREAS, the proposed Zoning Map Amendment No. 433 has been publicly noticed in accordance with State Law and the Fountain Valley Municipal Code; and NOW, THEREFORE, the City Council of the City of Fountain Valley does ordain as follows:

SECTION 1
The City Council finds that due notice of the public hearing on April 5, 2022, conducted in the Council Chambers, City Hall, 10200 Slater Avenue, was given as required by the FVMC, Title 21, and the Statutes of the State of California.

SECTION 2
Prior to consideration of the Project and Amendments as contained in Resolution 9825 and Ordinances 1581 and 1582, the City Council found that the Project and Amendments would not have a significant adverse effect upon the environment and recommended approval of the MND and MMRP prepared for the Project. The City Council further found that the MMRP will ensure compliance during project implementation in that changes to the Project and/or mitigation measures have been incorporated into the Project and are fully enforceable

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through permit conditions, agreements, or other measures as required by Public Resources Code Section 21081.6.

The MND was circulated for public review from February 4, 2022 to February 24, 2022, and made available to the public and the City Council for review and consideration. The City Council has reviewed the MND, together will all comments and responses to those comments, and MMRP, and has found that the environmental document considers all environmental effects of the proposed Project, is complete and adequate, and fully complies with all requirements of CEQA and the CEQA Guidelines.

The City Council, as the Lead Agency, arrived at its independent judgement and found that on the basis of the MND and any comments received that there is no substantial evidence that the Project will have a significant adverse impact on the environment provided that the mitigation measures identified in the environmental document are incorporated into the Project.

SECTION 3
Pursuant to Fountain Valley Municipal Code section 21.34.050 the City Council does hereby find as follows:

1. The proposed amendments ensure and maintain internal consistency with the actions, goals, objectives and policies of the general plan, and would not create any inconsistencies with this title, in the case of a title amendment.

The proposed Amendments (General Plan Amendment No. 21-01, Zoning Map Amendment No. 433, and Code Amendment No. 21-01) will be internally consistent with each other and will provide for the orderly grown of the Project as well as other future mixed-use zones in the city. The Amendments to create new mixed-use zones would not create any inconsistencies with the General Plan or within the Municipal Code. The Amendments update the Code to accommodate a broader range of residential land uses in order to enhance affordability. The Amendments support the implementation of various General Plan goals and policies. Specifically, the Amendments will:
 Maintain and enhance high quality development throughout the City by maintaining and continuing to enhance high quality mixed-use development throughout the City (Goal 2.1, Policy 2.1.1). The Project will accommodate a broader range of development types in the City that will now include highquality mixed-use development, which currently does not exist in Fountain Valley.
 Protect and enhance existing well-maintained neighborhood areas (Goal 2.5, Policy 2.5.1). The Amendments will allow two different types of Mixed-Use Projects with different sets of development standards to protect and enhance existing well-maintained neighborhood areas depending on the size of the mixed-use property and proximity to surrounding R1 zoned uses. The subject site is suited for mixed use as it is situated between residential, commercial, and public uses. The Project site is bordered by existing medium and high density residential zones to the north and east and commercial and Public

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Institutional zones to the west and south, respectively. The Project will encourage quality redevelopment of sites and the replacement of dated and declining structures with modern buildings constructed to current and specific development standards for Mixed-Use zones as outlined in the Staff Report for this Project.
 Promote residential, commercial and industrial development which achieves harmony without monotony in the built environment (Goal 2.6, Policy 2.6.1).

The project will accommodate harmonious and attractive architectural design, with less monotony than commonly exists in single-use zones. The Amendments will facilitate the development of new housing stock that is similar in layout, separation, design, height, and style to nearby high-density development. The mixed-use development standards will allow for high density development while incorporating certain development standards to lessen the visual impact of mixed-use projects with standards such as upper level stepbacks, height modulation, publicly accessible and private open space, façade and massing variation, building separation, etc.
 Encourage planning and design which is people oriented, sensitive to the needs of visitors and residents and functionally efficient for its purpose (Goal

2.6, Policy 2.6.2). The Amendments will provide for combinations of land uses that effectively serve the needs of residents, allowing for pedestrian and bicycle access to land uses that are interspersed rather than segregated. Specific publicly accessible open space and building separation requirements will provide for functionally efficient people-oriented gathering areas for visitors and residents. Additionally, amenity requirements will provide features for residents of mixed-use developments.
 Encourage creative site planning in residential development offering open space for semi-private, passive and active recreational uses (Goal 2.7, Policy

2.7.1). In addition to the requirement for publicly accessible and private open spaces, the Amendments will encourage creative site planning and the provision of various amenities and recreational uses for residents through the amenities required by Code Amendment 21-01. In the case of the Project, amenities will include a clubhouse, yoga/fitness use, bike storage, golf simulator/lounge, California Room, Roof Decks, Courtyards, and Plazas.

Additionally, the rear of the property will provide for painted game active open space uses such as hopscotch and shuffleboard while also providing for a code required emergency vehicle access lane. The Project will also be assessed Park Facilities Fees as required by FVMC 21.79 for the residential units that are not designated as affordable in the amount of $1,962,834.  Buildings shall present fully finished facades on all sides visible from freeways or streets (Goal 2.9, Policy 2.9.4). The Amendments will provide for attractive streetscapes with an emphasis on habitable architecture rather than parking along street edges and fully finished facades on all street facing facades consistent with the requirements of Code Amendment No. 21-01.  Enhance pedestrian facilities in non-residential areas (Goal 2.10, Policy

2.10.2). The Amendments will provide safe and attractive pedestrian facilities

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by enhancing pedestrian facilities in non-residential areas. The Amendments will allow for mixed-use projects with enhanced pedestrian facilities adjacent to required commercial areas within mixed-use projects through the enhancement of publicly accessible open space requirements.  Minimize the visual impacts of commercial and industrial surface parking (Goal

2.11, Policy 2.11.1). The Amendments will provide for safe and attractive parking facilities throughout the City by minimizing the visual impacts of commercial and industrial surface parking. The Amendments will require that parking structures facing residential zones shall have all exterior walls designed to mimic the design and treatment of the habitable building. Also, except for at the entry to a parking garage, ground level parking shall not be visible from the street.
 Promote the construction of additional dwelling units to accommodate Fountain Valley’s share of regional housing needs in accordance with adopted land use policies (Housing Element Goal #2, Policy 2.a). The Amendments will help aid in meeting the City’s regional housing needs assessment of 4,839 units by the year 2029 in accordance with adopted land use policies and the draft 6th Cycle Housing Element.
 Promote development of compatible mixed-use projects with residential components at medium to high densities with commercial designations, where determined appropriate (Housing Element Goal #2, Policy 2.e). The Amendment will allow for the orderly development of mixed-use development at high densities of 40 to 100 units per acre with residential and commercial component requirements.

Provide regulatory incentives to encourage the development of affordable housing (Housing Element Goal #3, Policy 3.f). The Amendments will allow for mixed-use development that may utilize density bonus options pursuant to State Density Bonus Law consistent with Government Code Sections 65915-65918 including incentives such as concessions and waivers if a certain percentage of the “base” units are restricted as affordable benefiting extremely low, very low, and low income persons, families, and households as defined in the California Health and Safety Code.

2. The proposed amendments would not be detrimental to the public convenience, health, interest, safety or welfare of the city.

The proposed Amendments would accommodate mixed-use development consisting of residential and commercial development. Such development, when properly located, would be beneficial to the public convenience, interest, and welfare by providing new housing, including affordable units, in an urbanized area near major jobs centers. The project contains no features that could be detrimental to public health or safety. The Project meets Building and Fire Code requirements and provides gathering places for the public.

3. The proposed project has been reviewed in compliance with the provisions of the California Environmental Quality Act (CEQA) and the city’s environmental review

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procedures.

As contained in Resolution 9824, a MND and MMRP were prepared and incorporated into the Project. The City Council finds that the MMRP will mitigate or avoid potential significant impacts created by the Project. The MND was circulated for public review from February 4, 2022 to February 24, 2022, and considered prior to consideration of the Project and Amendments.

4. Additional Finding for Zoning Map Amendments. The site(s) is/are physically suitable (including access, provision of utilities, compatibility with adjoining land uses and absence of physical constraints) for the requested zoning designation(s) and anticipated land use development(s).

The site is appropriate to accommodate the Project with the proposed Zoning Map Amendment. As detailed in the Staff Report for the Project, the Project is of an appropriate size (approximately 3.34 acres) and is adequately designed to accommodate a four- and five-story mixed-use development with 270 residential units, a 5,000 square foot restaurant with 2,000 square feet of outdoor dining space, a walkup coffee and lunch bar, a 1,660 square foot art gallery, a 6-level parking garage, and associated amenities. The project site is located within an urbanized area, with direct access to fully improved roadways of Slater Avenue, San Mateo Street, and El Corazon Avenue having the capacity to serve the project. Utilities are in place and will be improved as needed to accommodate the project. Adjacent land uses are similar in nature (residential and commercial) and there are no physical constraints to the proposed development.

SECTION 4
The City Council finds that the amendment noted in Zoning Map Amendment No. 433 as set forth in “Exhibit B”, and attached hereto is consistent with the Fountain Valley Municipal Code, as well as the Fountain Valley General Plan.

SECTION 5
If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the ordinance. The City Council declares that it would have passed this ordinance and each and every section, subsection, sentence, clause or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would subsequently be declared invalid or unconstitutional.

SECTION 6
The City Clerk shall certify to the adoption of this ordinance and cause it to be published as required by law. This ordinance shall become effective thirty (30) days after the date of its adoption.

PASSED, APPROVED AND ADOPTED THIS 19TH DAY OF APRIL, 2022.

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ATTEST:
____________________________
Patrick Harper, Mayor
Rick Miller, City Clerk

APPROVED AS TO FORM

HARPER & BURNS LLP
_________________________________
William P. Curley III, Attorneys for the City

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“Exhibit A”
Slater Mixed-Use Legal Description
PARCEL 1:

THE WESTERLY 125.00 FEET OF THE EASTERLY 325.00 FEET MEASURED ALONG THE SOUTHERLY LINE OF THE NORTHERLY 200.00 FEET OF THE SOUTHERLY 250.00

FEET OF THE SOUTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 29, TOWNSHIP 5 SOUTH, RANGE 10 WEST, IN THE RANCHO LAS BOLSAS, AS SAID NORTHWEST QUARTER IS SHOWN ON THE MAP OF TRACT 569, RECORDED IN BOOK 18, PAGE 18 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY

RECORDER OF SAID COUNTY, THE EASTERLY AND WESTERLY LINES THEREOF BEING AT RIGHT ANGLES TO SAID SOUTHERLY LINE.

EXCEPT AS UNDIVIDED 5 PER CENT OF ALL OIL, GAS AND OTHER HYDROCARBON SUBSTANCES IN, ON AND UNDER SAID LAND, AS RESERVED BY FRED C. RIEDMAN ALSO KNOWN AS F. C. REIDMAN AND ANNA F. RIEDMAN, HUSBAND AND WIFE, IN DEED RECORDED OCTOBER 28, 1948 IN BOOK 1722, PAGE 78 OF OFFICIAL RECORDS.

PARCEL 2:

THE WESTERLY 25.00 FEET OF THE EASTERLY 350.00 FEET MEASURED ALONG THE SOUTHERLY LINE OF THE NORTHERLY 200.00 FEET OF THE SOUTHERLY 250.00

FEET OF THE SOUTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 29, TOWNSHIP 5 SOUTH, RANGE 10 WEST IN THE RANCHO LAS BOLSAS, AS SAID NORTHWEST QUARTER IS SHOWN ON MAP OF TRACT NO. 569, RECORDED IN BOOK 18, PAGE 18 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY

RECORDED OF SAID COUNTY, THE EASTERLY AND WESTERLY LINES THEREOF BEING AT RIGHT ANGLES TO SAID SOUTHERLY LINE.

EXCEPT AS UNDIVIDED 5 PER CENT OF ALL OIL, GAS AND OTHER HYDROCARBON SUBSTANCES IN, ON AND UNDER SAID LAND, AS RESERVED BY FRED C. REIDMAN AND ANNA F. REIDMAN, HUSBAND AND WIFE, IN DEED RECORDED OCTOBER 28, 1948 IN BOOK 1722, PAGE 78 OF OFFICIAL RECORDS.

PARCEL 3:

AN EASEMENT FOR INGRESS AND EGRESS TO BE USED IN COMMON WITH OTHERS OVER THE NORTHERLY 20.00 FEET OF THE SOUTHERLY 250.00 FEET OF THE EASTERLY 300.00 FEET MEASURED ALONG THE SOUTHERLY LINE OF THE

SOUTHWEST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 29, TOWNSHOP 5 SOUTH, RANGE 10 WEST, IN THE RANCO

LAS BOLSAS, AS SAID NORTHWEST QUARTER IS SHOWN ON THE MAP OF TRACT NO. 569, RECORDED IN BOOK 18, PAGE 18 OF MISCELLANEOUS MAPS, IN THE

OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, THE WESTERLY LINE THEREOF BEING AT RIGHT ANGLES TO SAID SOUTHERLY.

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PARCEL 4:

AN EASEMENT FOR INGRESS AND EGRESS TO BE USED IN COMMON WITH OTHERS OVER THE NORTHLY 180.00 FEET OF THE SOUTHERLY 230.00 FEET OF THE EASTERLY 30.00 FEET, MEASURED ALONG THE SOUTHERLY LINE OF THE SOUTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 29, TOWNSHIP 5 SOUTH, RANGE 10 WEST, IN THE RANCHO LAS BOLSAS, AS SAID NORTHWEST QUARTER IS SHOWN ON THE MAP OF TRACT NO. 569, RECORDED IN BOOK 18, PAGE 18 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID

COUNTY, THE WESTERLY LINE THEREOF BEING AT RIGHT ANGLES TO SAID SOUTHERLY LINE.

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“Exhibit B”

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ORDINANCE NO. 1582

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FOUNTAIN VALLEY APPROVING CODE AMENDMENT NO. 21-01 TO CREATE A

MIXED-USE ZONING DISTRICT THAT INCLUDES SPECIFIC ZONING

STANDARDS FOR MIXED-USE ZONES INCLUDING PERMITTED USES,

DEVELOPMENT STANDARDS, EXCEPTIONS, AND DEFINITIONS FOR

THE PROJECT LOCATED AT THE NORTHEAST CORNER OF SAN MATEO STREET AND SLATER AVENUE (10201, 10221, AND 10231 SLATER

AVENUE)
WHEREAS, Slater Investments, LLC (“Applicant”) has submitted a request to construct a one to five-story mixed-use development with 270 residential units, a 5,000 square foot restaurant with 2,000 square feet of outdoor dining space, a walk-up coffee and lunch bar, a 1,660 square foot art gallery, a 6-level parking garage, and associated amenities on a 3.34 acre project site located at the northeast corner of San Mateo Street and Slater Avenue (10201, 10221, and 10231 Slater Avenue (“Project”); and WHEREAS the Project includes the following applications in accordance with the Fountain Valley Municipal Code (FVMC):
 Per FVMC 21.34, a General Plan Amendment is required for a change in land use designation from General Commercial to Mixed Use 1 for the approximate

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WHEREAS, the Project is located at the northeast corner of San Mateo Street and Slater Avenue at 10201, 10221, and 10231 Slater Avenue (APN #’s 169-122-02, 169-122- 07, and 169-122-08), which is formally described in the legal description attached hereto as “Exhibit A” (“Site”); and
WHEREAS, the General Plan is a long-range, comprehensive blueprint that guides the orderly development and growth of the City of Fountain Valley; and WHEREAS, by its very nature, the General Plan must be updated and refined to reflect changing community needs and attitudes; and
WHEREAS, the draft General Plan Housing Element and Land Use Map, which have been created with years of community input as part of the City’s ongoing comprehensive general plan update, identify the Project site as Mixed Use 1 and the Project is consistent with that direction; and
WHEREAS, the General Plan Amendment would change the General Plan land use designation from General Commercial to Mixed Use 1 to allow for the development of the Project; and
WHEREAS, the Zoning Map Amendment would change the Zoning Map designation from C1 – Local Business to MU-1 – Mixed-Use 1 to align with the change in the General Plan Map land use designation; and
WHEREAS, the Code Amendment would create a new Mixed-Use Zoning District that includes specific zoning standards for mixed use zones including permitted uses, development standards, exceptions, and definitions to regulate development within the Mixed-Use Zones; and
WHEREAS, the City has complied with the requirements of the Government Code Section 65300 et seq., the current State of California General Plan Guidelines, and the City’s applicable ordinances with respect to review and consideration of the proposed Project, including the General Plan, Zoning map, and Code Amendments (together “Amendments”); and
WHEREAS, per the California Environmental Quality Act (CEQA), the Fountain Valley Planning Commission first considered the accompanying Mitigated Negative Declaration (MND) and Mitigation Monitoring and Reporting Plan (MMRP) prepared for the Project in a separate action, as contained in Resolution 22-09, at its noticed public hearing on March 9, 2022; and
WHEREAS, the Planning Commission also considered Precise Plan No. 562 in a separate action, as contained in Resolution 22-10, at its noticed public hearing on March 9, 2022; and
WHEREAS, the Fountain Valley Planning Commission considered the Amendments at its noticed public hearing on March 9, 2022; and

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WHEREAS, per the California Environmental Quality Act (CEQA), the Fountain Valley Planning Commission recommended the City Council approved the accompanying MND and MMRP prepared for the Project in a separate action, as contained in Resolution 22-09, by a vote of 5-0 at its noticed public hearing on March 9, 2022; and WHERAS, the Planning Commission recommended the City Council approve General Plan Amendment 21-01, Zoning Map Amendment No. 433, and Code Amendment No. 21-01 as contained in Resolution No.22-11 by a vote of 4-1 at its noticed public hearing on March 9, 2022; and
WHEREAS, the Planning Commission approved Precise Plan No. 562 in a separate action, as contained in Resolution 22-10, by a vote of 4-1 at its noticed public hearing on March 9, 2022, contingent upon City Council approval of General Plan Amendment 21-01, Zoning Map Amendment No. 433, Code Amendment No. 21-01, and the MND and MMRP; and
WHEREAS, the City Council considered the Project and Amendments at its noticed public hearing on April 5, 2022; and
WHEREAS, per the California Environmental Quality Act (CEQA), the City Council of the City of Fountain Valley first considered the accompanying MND and MMRP prepared for the Project in a separate action, as contained in Resolution 9824, at its noticed public hearing on April 5, 2022; and
WHEREAS, the City Council considered General Plan Amendment No. 21-01, an amendment that would change the General Plan land use designation from General Commercial to Mixed Use 1 to allow for the development of the Project at its noticed public hearing on April 5, 2022; and
WHEREAS, the City Council first considered Code Amendment No. 21-01 at its noticed public hearing on April 5, 2022; and
WHEREAS, the proposed Code Amendment No. 21-01 has been publicly noticed in accordance with State Law and the Fountain Valley Municipal Code; and

NOW, THEREFORE, THE CITY COUNCIL DOES HEREBY FIND AND ORDAIN AS FOLLOWS:

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the MND and MMRP prepared for the Project. The City Council further found that the MMRP will ensure compliance during project implementation in that changes to the Project and/or mitigation measures have been incorporated into the Project and are fully enforceable through permit conditions, agreements, or other measures as required by Public Resources Code Section 21081.6.

SECTION 3
Pursuant to Fountain Valley Municipal Code section 21.34.050 the City Council does hereby find as follows:

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mixed-use property and proximity to surrounding R1 zoned uses. The subject site is suited for mixed use as it is situated between residential, commercial, and public uses. The Project site is bordered by existing medium and high density residential zones to the north and east and commercial and Public Institutional zones to the west and south, respectively. The Project will encourage quality redevelopment of sites and the replacement of dated and declining structures with modern buildings constructed to current and specific development standards for Mixed-Use zones as outlined in the Staff Report for this Project.
 Promote residential, commercial and industrial development which achieves harmony without monotony in the built environment (Goal 2.6, Policy 2.6.1).

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along street edges and fully finished facades on all street facing facades consistent with the requirements of Code Amendment No. 21-01.  Enhance pedestrian facilities in non-residential areas (Goal 2.10, Policy

2.10.2). The Amendments will provide safe and attractive pedestrian facilities by enhancing pedestrian facilities in non-residential areas. The Amendments will allow for mixed-use projects with enhanced pedestrian facilities adjacent to required commercial areas within mixed-use projects through the enhancement of publicly accessible open space requirements.  Minimize the visual impacts of commercial and industrial surface parking (Goal

2. The proposed amendments would not be detrimental to the public convenience, health, interest, safety or welfare of the city.

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or safety. The Project meets Building and Fire Code requirements and provides gathering places for the public.

3. The proposed project has been reviewed in compliance with the provisions of the California Environmental Quality Act (CEQA) and the city’s environmental review procedures.

4. Additional Finding for Title Amendments (Code Amendments). The proposed amendment is internally consistent with other applicable provisions of this title.

The proposed Amendments ensure consistency between the General Plan and Zoning Map land use designations, and the Fountain Valley Municipal Code.

SECTION 4
That new chapter 21.15 is hereby added to the Fountain Valley Municipal Code to read:
“…
Chapter 21.15 Mixed-Use Zoning Districts

21.15.010 Purpose.

The Mixed-Use Zone combines two or more types of uses, typically including residential, commercial, office, institutional, cultural, and entertainment uses, into one project or space, where those functions are physically and functionally integrated. The Mixed-Use Zone implements several community aspirations, including:

1. Conserving energy through efficient land use, facilitating non-motorized access, and reducing reliance on vehicles.

2. Creating activity and gathering areas.

3. Achieving usable and pleasant public open space.

4. Resulting in shared infrastructure/facilities (E.g. parking), potentially reducing development and operating costs.

5. Achieving greater long-term appreciation in land and property values.

6. Stimulating revitalization and redevelopment activity in infill locations.

7. Providing opportunities for increased use of public transit.

8. Providing fiscally positive land uses while helping to achieve housing goals.

21.15.020 Mixed-use zoning districts.

1. MU-1 District (Small Sites <5.0 acres). The MU-1 zoning district applies to sites that are less than 5.0 acres and accommodates a more intensive development than the MU-2

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District. The MU-1 District allows higher density residential uses mixed with non-residential uses such as retail, dining, entertainment, and offices. The intent is to make redevelopment of infill parcels more economically feasible (e.g. account for higher costs due to structured or subterranean parking). The MU-1 zoning district is consistent with the MU-1 land use designation of the general plan.

2. MU-2 District (Large Sites >5.0 acres). The MU-2 zoning district applies to sites that are larger than 5.0 acres and, because of the size, is intended to achieve an integrated project area with a range of residential product types and densities mixed with ample nonresidential uses, such as retail, dining, entertainment, and offices, and public spaces. The MU-1 zoning district is consistent with the MU-2 land use designation of the general plan.

3. Mixed-Use developments may be vertical in design, with multiple uses on different floors of the same structure, or horizontal, with different uses located within separate structures placed in the same master-planned development.

21.15.030 Mixed-Use district land uses and permit requirements.

Table 2-10 identifies the uses of land allowed in the Mixed-Use Zone, and the land use permit required to establish each use, in compliance with Section 21.06.030 (Allowable land uses and permit requirements) of this title.

Note: where the last column in the tables (“Specific Use Regulations”) includes a section number, the regulations in the referenced section apply to the use; however, provisions in other sections of this title may also apply.

TABLE 2-10
P Permitted Use
CUP Conditional Use Permit required
— Use not allowed
Allowed Uses and Permit Requirements for
Mixed-Use Zoning Districts