CITY OF LAGUNA NIGUEL
CIty Council AgendA ITEM
To: Honorable Mayor and Council Members
FROM: Jonathan Orduna, Community Development Director
DATE: December 5, 2023
SUBJECT: Extending the City's deadline to establish an online permitting system for post-entitlement phase permits in accordance with state law.
RECOMMENDATION
Staff recommends that the City Council take the following actions:
1. Find that adoption of the resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result 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 no potential for resulting in physical change to the environment, directly or indirectly.
2. Adopt Resolution No. 2023-1456 extending the City's deadline to establish an online permitting system for post-entitlement phase permits to January 1, 2026.
BACKGROUND
California Assembly Bill 2234 ("AB 2234") took effect on January 1, 2023. AB 2234 added sections 65913.3 and 65913.3.5 to the Government Code and, most notably, extends elements similar to those of the Permit Streamlining Act to a local agency's review of ministerial "post-entitlement phase permit" applications for housing development projects.
Under AB 2234, post-entitlement phase permits are all nondiscretionary permits and reviews filed after the entitlement process has been completed that are required or issued by the local agency to begin construction of a development that will be at least two-thirds residential. Examples of post-entitlement phase permits include, but are not limited to: (i) building permits; (ii) permits of minor or standard off-site improvements; (iii) permits for demolition; or (iv) permits for minor or standard excavation and grading.
AB 2234 imposes numerous requirements on a local agency's review and processing of a post-entitlement phase permit application, including: (1) posting application checklists and examples online; (2) time limits to determine whether an application is complete; (3) time limits to approve or deny an application; (4) providing an applicant with the right to
appeal the local agency's decision; and (5) implementing an online permitting system.
This current item before the City Council concerns item (5) above, AB 2234's online permitting system requirement.
ANALYSIS
Among other things, AB 2234 requires local agencies that are located in counties with a population of 250,000 or greater to implement an online permitting system that allows applicants to apply for, check the status of, complete and retrieve post-entitlement phase permits. Local agencies in counties with a population of less than 250,000 are exempt from this online permitting system requirement.
For local agencies in counties with a population or 250,000 or greater, the deadline to comply with AB 2234's online permitting system requirement is: (i) January 1, 2024 if the local agency has a population of 75,000 or greater or is located in a county with a population of 1.1 million or greater; or (i) January 1, 2028 for all local agencies not covered by (1). The City of Laguna Niguel is subject to the January 1, 2024 deadline because Laguna Niguel is located in a county with a population of 1.1 million or greater.
AB 2234 authorizes any local agency subject to the January 1, 2024 deadline to give itself an extension of up to two years (i.e., to January 1, 2026) if its legislative body does both of the following before January 1, 2024: (1) makes a written finding that adopting an online permitting system by January 1, 2024, would require substantial increases in permitting fees; and (2) has initiated a procurement process for the purpose of complying with the online permitting system requirement.
While the City of Laguna Niguel has initiated the above-noted procurement process and is in the process of software implementation, the timeline for completion of this effort is scheduled to extend beyond the State's January 1, 2024 deadline. The logistics involved in attempting to further expedite the ongoing software implementation to comply with the State deadline would be significant. Similarly, augmenting the City's existing development fees to cover associated costs would require a substantial fee increase.
Given these factors, staff recommends that the City Council opt for the permitted two-year extension. The resolution attached as Attachment 1 makes the requisite findings and, if adopted by the City Council, will extend the City's deadline to comply with AB 2234's online permitting system requirement to January 1, 2026. As required by AB 2234, the resolution also includes a direction to staff to initiate the procurement process necessary to comply with this requirement. This process will be conducted in accordance with state law and the City's applicable procurement policies.
ENVIRONMENTAL REVIEW
In accordance with the California Environmental Quality Act ("CEQA") Guidelines, adopting the resolution is not subject to the California Environmental Quality Act (CEQA") pursuant to Sections 15060(c)(2) (the activity will not result 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 no potential for resulting in physical
change to the environment, directly or indirectly.
FISCAL REVIEW
There is no fiscal impact as a result of this extension.
LEGAL REVIEW
2023-14 6 as to Yor Ofice has reviewed and approved this report and Resolution No
CONCLUSION
Staff recommends that the City Council take the following actions:
1. Find that adoption of the resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result 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 no potential for resulting in physical change to the environment, directly or indirectly.
2. Adopt Resolution No. 2023-1456 extending the City's deadline to establish an online permitting system for post-entitlement phase permits to January 1, 2026.
Samars Setowsman
Tamara S. Letourneau Scott Smith
City Manager City Attorney
Jonathan Orduna John Morgan
Community Development Director Development Services Manager Erica Roess
Erica Roess
Senior Planner
Attachment:
A. Resolution No. 2023-1456
RESOLUTION NO. 2023-1456
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA NIGUEL,
CALIFORNIA EXTENDING THE DEADLINE TO ESTABLISH AN ONLINE
PERMITTING SYSTEM FOR POST-ENTITLEMENT PHASE PERMITS UNDER CALIFORNIA GOVERNMENT CODE SECTION 65913.3.5 (AB 2234)
WHEREAS, California Assembly Bill 2234 ("AB 2234") added sections 65913.3 and 65913.3.5 to the Government Code and took effect on January 1, 2023; and WHEREAS, AB 2234 extends elements similar to those of the Permit Streamlining Act to a local agency's review of ministerial "post-entitlement phase permit" applications for housing development projects; and
WHEREAS, under AB 2234, a "post-entitlement phase permit" includes all nondiscretionary permits and reviews that are required or issued by the local agency after the entitlement process has been completed to begin construction of a development that is intended to be at least two-thirds residential. Examples include, among other things, building permits, demolition permits, and permits for minor or standard excavation and grading; and
WHEREAS, in addition to the above, AB 2234 requires local agencies that are located in counties with a population of 250,000 or greater to implement an online permitting system that allows applicants to apply for, check the status of, complete, and retrieve post-entitlement phase permits (local agencies in counties with a population of less than 250,000 are exempt from this online permitting system requirement); and WHEREAS, for local agencies in counties with a population or 250,000 or greater, the deadline to comply with AB 2234's online permitting system requirement is: (1) January 1, 2024 if the local agency has a population of 75,000 or greater or is located in a county with a population of 1.1 million or greater; or (2) January 1, 2028 for all local agencies not covered by (1); and
WHEREAS, the City of Laguna Niguel ("City") is subject to the January 1, 2024 deadline because Laguna Niguel is located in a county with a population of 1.1 million or greater; and
WHEREAS, any local agency subject to the January 1, 2024 deadline may give itself an extension of up to two years (i.e., to January 1, 2026) if its legislative body does both of the following before January 1, 2024: (1) makes a written finding that adopting an online permitting system by January 1, 2024, would require substantial increases in permitting fees; and (2) has initiated a procurement process for the purpose of complying with the online permitting system requirement; and
WHEREAS, the City desires to extend its deadline to comply with AB 2234's online permitting system requirement to January 1, 2026; and
Resolution No. 2023-1456
NOW, THEREFORE, the City Council of the City of Laguna Niguel does hereby resolve as follows:
SECTION 1. Recitals. The City Council hereby finds and determines that the recitals above are true and correct and are each incorporated by reference and adopted as findings by the City Council.
SECTION 2. CEQA. The City Council hereby finds that the adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as detined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly
SECTION 3. AB 2234 Findings; Direction to Staff. In accordance with Government Code section 65913.3.5(a)(2)(A)-(B):
1. Substantial Increase in Permitting Fees. The City Council hereby finds that implementing an online permitting system by January 1, 2024 would require substantial increases in the City's permitting fees because the City of Laguna Niguel is currently under contract with Tyler Technologies, Inc., which is initiating a new compliant permitting system software (EnerGov). Expediting the launch of such software by December 31s would lead to additional costs to the City, which in turn would necessitate substantial increases in the costs of fees to the users to cover the additional costs required to expedite the implementation.
2. Initiation of Procurement Process. The City Council hereby acknowledges that the City has already initiated the procurement process necessary to comply with AB 2234's online permitting system. Staff is directed to continue this process in accordance with state law and the City's applicable procurement policies.
SECTION 4. Extension. The City Council hereby elects to extend its deadline to implement an online permitting system to January 1, 2026.
SECTION 5. Effective Date. This resolution shall become effective immediately upon its adoption.
SECTION 6. Certification. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.
Resolution No. 2023-1456
PASSED, APPROVED, AND ADOPTED this 5'h day of December, 2023 Kelly Jennings, Mayor
ATTEST:
Marissa Asistin, CMC, City Clerk