City Council/Public Financing Authority
July 8, 2024

City Council Meeting – Co uncil Member Items Report

To: City Council
From: Gracey Van Der Mark, Mayo r
Pat Burns, Mayor Pro Tem
Casey McKeon, Council Member
Date: July 2, 2024
Subject: PROPOSED CHARTER AMENDMENT – ENVIRONMENTAL PROTECTIONS

FOR GENERAL PLAN AMENDMENTS

2000 Main Street, Huntington Beach, CA 92648 | www.huntingtonbeachca.gov

ISSUE STATEMENT
The City Council has a duty to protect the Ci ty's environment and typically does so by complying with the State’s environmental laws set forth in the California Environmental Quality Act (CEQA). As we have seen with recent State mandates for high-density housing, the State of California is imposing a draconian development policy on our City that demonstrates a disregard for our precious environment, natural resources, quality of life, and even for CEQA.

The environmental review of the City’s proposed 2023 Housing Element update revealed that the State's high-density housing quota of 13,368 new units, which translates to 41,000 new units at a 20% inclusionary rate of deve lopment, would present several "significant and unavoidable" negative impacts to ou r environment. Those impacts include permanent reduction in our groundwater su pply, permanent increase in greenhouse gases and air pollutants, permanent noise po llution, increased traffic and congestion, and threats to our local wildlife and natural undeveloped regions such as wetlands and large parks. The official Environmental Revi ew document is attached to this item as Exhibit A.

Further, as part of the City’s Housing Element update, the State expects the City Council to adopt a Statement of Overriding Consider ations that essentially states that "the benefits of the State's proposed high-density housing of 13,368 new units outweighs the known significant and unavoidable negative impacts to the City's environment." The proposed Statement of Overriding Considerations that identifies the harm to our environment is attached to this item as Exhibit B.

In April 2023, the City Council was unable to make or adopt this Statement of Overriding Considerations and made clear on the record their unwillingness to "sell out" the City's environment in favor of the Stat e's misguided and onerous high-density development demands. The people of Huntington Beach should have a voice in whether the exchange of the City's current pristine environmental conditions for the State's high-density housing mandates is acceptable. Further, the residents of Huntington 2000 Main Street, Huntington Beach, CA 92648 | www.huntingtonbeachca.gov

Beach should decide if they are willing to live with the long-term permanent negative impacts to the City's environment that ar e presented by the State's high-density development scheme.

The City has Constitutional rights under Articl e XI, Section 5 of the California Constitution for local control, just as the City Charter currently sets forth in its Preamble and Sections 103 and 104, that local control, known as "home rule," applies to municipal affairs. For decades, and even now, California law has re cognized that a Charter City's planning and zoning of its land is a local, "municipal affair," beyond the reach of State interference and control. This concept was reaffi rmed in a recent decision in the City of Redondo Beach, et al., v. Rob Bonta , in his capacity as California Attorney General, Case No. 22STCP1143 (2024), where the State was stopped from imposing its zoning policies on Charter Cities and the State's SB 9 was declar ed unconstitutional as applied to Charter Cities.

The City Charter Preamble states "We, the people of the City of Huntington Beach, State of California believe fiscal responsibility and the prudent stewardship of public funds is essential for confidence in government, that ethics and integrity are the foundation of public trust and that just governance is built upon these values. Through the enactment of this Charter as the fundamental law of the City of Huntington Beach under the Constitution of the State of California, we do hereby exercise the privilege of retaining for ourselves, the benefits of local government, by enacting the laws, rules, regulations and procedures set forth herein pertaining to the governance and operation of our City. It is incumbent upon those who govern and make decisions for and on behalf of the City of Huntington Beach to legally, as well as morally, abide by the provisions of this Charter, in its strictest sense, to ensure the continued success and well-being of our fair City." Huntington Beach City Charter Section 103 states "The City shall have the power to make and enforce all laws and regulations in respect to municipal affairs, subject only to such restrictions and limitations as may be provided in this Charter or in the Constitution of the State of California."
Huntington Beach City Charter Section 104 states "The general grant of power to the City under this Charter shall be construed broadly in favor of the City. The specific provisions enumerated in this Charter are intended to be and shall be interpreted as limitations upon the general grant of power and shall be construed narrowly. If any provisions of this Charter, or the application thereof to any person or circumstance is held invalid, the remainder of the Charter and the application of such provision to other persons or circumstances, shall not be affected thereby."

RECOMMENDED ACTION
Place on the November 2024 Ballot a proposed Charter Amendment stating that "No City initiated general plan amendment or zoning change may be approved by the City where the related environmental review (EIR ) finds the same proposed general plan update or zoning change presents "signifi cant and unavoidable" negative impacts to the environment, without first receiving approval by a vote of the people." The proposed 2000 Main Street, Huntington Beach, CA 92648 | www.huntingtonbeachca.gov

Charter Amendment should include language to the effect of "City Planning and Zoning is a local, "municipal affair," beyond the re ach of State control or interference; and City Planning and Zoning is a local activity reserved for the City and its people, and not the State."
Direct staff to bring back a proposed November 2024 ballot initiative within thirty (30) days for City Council approval.

ENVIRONMENTAL STATUS
This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not re sult in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has not potential for resulting in physical change to the environment, directly or indirectly.

STRATEGIC PLAN GOAL
Goal 5 - Housing, Strategy A - Take action to maintain local control of land-use planning.

ATTACHMENTS

1. Exhibit A – Environmental Review (EIR)

2. Exhibit B – Statement of Overriding Conditions

Resolution No. 2023- 15
Exhibit " A"
Subsequent Final
Environmental Impact Report:

Findings of Fact/ Statement of Overriding Considerations SCH # 2021080104
2021- 2029 Housing Element Update

LEAD AGENCY
06i
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1 r
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CITY OF HUNTINGTON BEACH

DEPARTMENT OF COMMUNITY
2000 MAIN STREET 3RD FLOOR
HUNTINGTON BEACH, CA 92648
714) 536- 5721

CONSULTANT
Kimley)> Horn
KIMLEY- HORN AND ASSOCIATES, INC.

MS. RITA GARCIA
1100 TOWN AND COUNTRY ROAD, SUITE 700
ORANGE, CA 92868
714) 786- 6116
OCTOBER 2022
EXHIBIT 10
11 Case 8:23-cv-00421-FWS-ADS Document 50-2 Filed 06/06/23 Page 11 of 40 Page ID #:909
ER-321
City of Huntington Beach Final Subsequent Environmental Impact Report 2021- 2029 HEU Findings of Fact/ Statement of Overriding Considerations Table of Contents

1. 0 INTRODUCTION 2

2. 0 CEQA FINDINGS 4

3. 0 FINDINGS REGARDING PROJECT ALTERNATIVES 17

3. 1. Introduction 17

3. 2. Project Objectives 17

3. 3. Selection of Alternatives 18

3. 4. Project Alternative Findings 18

4. 0 STATEMENT OF OVERRIDING CONSIDERATIONS 25

4. 1. Introduction 25

4. 2. Significant Adverse Cumulative Impact 25

4. 3. Findings 26

4. 4. Overriding Considerations 26
List of Tables
Table 1: CEQA Findings for the HEU 5
October 2022 Page 1
EXHIBIT 10
12 Case 8:23-cv-00421-FWS-ADS Document 50-2 Filed 06/06/23 Page 12 of 40 Page ID #:910
ER-322
City of Huntington Beach Final Subsequent Environmental Impact Report 2021- 2029 HEU Findings of Fact/ Statement of Overriding Considerations

1. 0 INTRODUCTION
This document presents the Findings of Fact and Statement of Overriding Considerations that must be adopted by the City of Huntington Beach ( City) pursuant to the requirements of Sections 15091 and 15093, respectively, of the CEQAGuidelines prior to the approval of the City of of Huntington Beach 2021- 2029 Housing Element Update ( otherwise referred to as " HEU" or the" Project").

This document is organized as follows:

Chapter 1 Introduction to the Findings of Fact and Statement of Overriding Considerations.

Chapter 2 CEQA Findings of the Draft Subsequent Environmental Impact Report ( Draft SEIR), including the identified significant cumulative impacts.

Chapter 3 Summarizes the alternatives to the Project and evaluates them in relation to the findings contained in Section 15091( a)(3) of the CEQA Guidelines. The City must consider and make findings regarding alternatives when a project would involve environmental impacts that cannot be reduced to a less than significant level, or cannot be substantially reduced, by proposed mitigation measures.

Chapter 4 Statement of Overriding Considerations, as required by Section 15093 of the CEQA Guidelines, for significant impacts of a proposed project that cannot be mitigated to a less than significant level.

The Housing Element, which is a component of the Huntington Beach General Plan, provides direction for implementation of various programs to meet existing and projected future housing needs for all income levels within Huntington Beach. The City' s projected housing need for the 6th Cycle Regional Housing Needs Assessment ( RHNA) planning period ( 2021- 2029) is 13,368 dwelling units ( 11,743 units when accounting for existing applications and projects that are currently under review).

State housing law requires the City to specify the number of housing units that can realistically be accommodated on candidate housing sites. The City is not required to build dwelling units in order to meet its RHNA allocation, only to identify potential sites and create the framework to allow the market the opportunity to develop these units. Therefore, the Project, as defined for CEQApurposes, consists of the Housing Program to accommodate the lower- income RHNA units, including amendments to existing land use designations and zoning districts, an affordable housing overlay, and identification of underutilized, residentially- zoned parcels in an inventory of 378 candidate housing sites.

The HousingProgramspecificallyaddressedin the SEIRincludes amendments to the Huntington Beach Zoningand SubdivisionOrdinance (HBZSO) (ZoningMap Amendment Nos.22-001and 22-002 and Zoning Text Amendment Nos. 22- 006, 22- 007, 22- 008, and 22- 009) and the Huntington Beach General Plan Land Use Element ( General Plan Amendment No. 22-001) for changes to base/ overlay districts and land use October 2022 Page 2
EXHIBIT 10
13 Case 8:23-cv-00421-FWS-ADS Document 50-2 Filed 06/06/23 Page 13 of 40 Page ID #:911
ER-323
City of Huntington Beach Final Subsequent Environmental Impact Report 2021- 2029 HEU Findings of Fact/ Statement of Overriding Considerations designations, as well amendments to other planning documents, as needed for clarification and consistency purposes and to accommodate future housing sites as part of the HEU's Implementation Program. These amendments provide capacity for future development of approximately 19,738 housing units to meet the City' s remaining unmet RHNA of 11,743 housing units.

Other Federal, State, and local agencies are involved in the review and approval of the HEU, including those agencies designated as trustee and responsible agencies. A trustee agency is a State agency that has jurisdiction by law over natural resources affected by a project that are held in trust for the people of the State. A responsible agency is an agency, other than the lead agency, that has responsibility for carrying out or approving a project. Responsible and trustee agencies are consulted by the CEQA lead agency to ensure the opportunity for input and also review and comment on the Draft SEIR. Responsible agencies also use the CEQA document in their decision- making. Several agencies other than the City may require permits, approvals, and/ or consultation to implement various HEU programs.

Responsible/ Trustee Agencies for the HEU include, but are not limited to:

South Coast Air Quality Management District( SCAQMD);
Santa Ana Regional Water Quality Control Board ( RWQCB); and State Department of Housing and Community Development( HCD).

Other agencies may use the Final SEIRin exercising their duties even if they do not have discretionary permit approval authority over all or parts of the HEU( or implementation of individual projects developed as a result of the HEU). All projects that are proposed in the future under the HEU will be required to obtain all necessary discretionary actions and environmental clearance, separate from this HEU.

October 2022 Page 3
EXHIBIT 10
14 Case 8:23-cv-00421-FWS-ADS Document 50-2 Filed 06/06/23 Page 14 of 40 Page ID #:912
ER-324
City of Huntington Beach Final Subsequent Environmental Impact Report 2021- 2029 HEU Findings of Fact/ Statement of Overriding Considerations

2. 0 CEQA FINDINGS
This chapter summarizes the potential impacts that were identified in the Draft Subsequent EIR (Draft SEIR) and the findings that are required in accordance with Section 15091 of the CEQA Guidelines. The possible findings for each significant and/ or potentially significant adverse impact are as follows:
a) Changes or alterations have been required in, or incorporated into the project which avoid, substantially lessen, or reduce the magnitude of the significant environmental effect as identified in the Draft SEIR(" Finding 1").
b) Such changes or alterations are within the responsibility and jurisdiction of another public agency and not the agency making the findings. Such changes have been adopted by such other agency or can and should be adopted by such other agency. (" Finding 2") c) Specific economic, social, or other considerations make infeasible the mitigation measures or project alternatives in the Draft SEIR (" Finding 3").

CEQA requires that the lead agency adopt mitigation measures or project alternatives, where feasible, to avoid or substantially reduce significant environmental impacts that would otherwise occur as a result of a project. Project modifications or alternatives are not required where they are infeasible or where the responsibility for modifying a project lies with another agency ( CEQA Guidelines § 15091, subd. ( a), [ 3]).

Public Resources Code Section 21061. 1 defines " feasible" to mean " capable of being accomplished in a successful manner within a reasonable period of time, taking into account economic, environmental, social and technological factors." CEQA Guidelines Section 15364 adds: " legal" considerations. ( See also Citizens of Goleta Valley v. Board of Supervisors [ Goleta II] [ 1990] 52 Cal. 3d 553, 565 [ 276 Cal. Rptr. 410].) Only after fully complying with the findings requirement can an agency adopt a Statement of Overriding Considerations. ( Citizens for Quality Growth v. City of Mount Shasta [ 1988] 198 Cal.App. 3d 433, 442, 445 243 Cal. Rptr. 727].) CEQA requires the Lead Agency to state in writing the specific rationale to support its actions based on a Final EIR and/ or information in the record. This written statement is known as the Statement of Overriding Considerations. The Statement of Overriding Considerations provides the information that demonstrates the decision making body of the Lead Agency has weighed the benefits of a project against its unavoidable adverse effects in determining whether to approve a project. If the benefits of a project outweigh the unavoidable adverse environmental effects, the adverse effects may be considered " acceptable."
This document presents the findings of the City as required by CEQA, cites substantial evidence in the record in support of each of the findings, and presents an explanation to supply the logical step between the finding and the facts in the record. ( CEQA Guidelines § 15091.). Additional facts that support the findings are set forth in the Draft SEIR, the Final SEIR, staff reports to the Planning Commission and City Council, and the record of proceedings.

Table 1 summarizesthe potentially significant impacts that were reducedto lessthan significant levels with mitigation as well as the significant impacts, as proposed for certification and adoption of the HEU.

October 2022 Page 4
EXHIBIT 10
15 Case 8:23-cv-00421-FWS-ADS Document 50-2 Filed 06/06/23 Page 15 of 40 Page ID #:913
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