Lakewood City Council
April 11, 2023

AGENDA

REGULAR CITY COUNCIL MEETING

COUNCIL CHAMBERS
5000 CLARK AVENUE

LAKEWOOD, CALIFORNIA
April 11, 2023, 7:30 p.m.

CALL TO ORDER
INVOCATION: Ms. Wanda Kenlow, Spiritual Assembly of the Bahá’í of Lakewood PLEDGE OF ALLEGIANCE: Scout Troop 247
ROLL CALL: Mayor Steve Croft
Vice Mayor Ariel Pe
Council Member Cassandra Chase
Council Member Todd Rogers
Council Member Jeff Wood
ANNOUNCEMENTS AND PRESENTATIONS:

Presentation Regarding Scout Troop 247 Raising $11,000 for Red Cross Relief in Ukraine Welcome to District Staff of Congressman Robert Garcia, 42nd Congressional District Presentation by Maria Jimenez, Ambassador from Donate Life ROUTINE ITEMS:

All items listed within this section of the agenda are considered to be routine and will be enacted by one motion without separate discussion. Any Member of Council may request an item be removed for individual discussion or further explanation. All items removed shall be considered immediately following action on the remaining items.

RI-1 MEETING MINUTES - Staff recommends City Council approve Minutes of the Meetings held March 28, 2023
RI-2 PERSONNEL TRANSACTIONS - Staff recommends City Council approve report of personnel transactions.

RI-3 REGISTERS OF DEMANDS - Staff recommends City Council approve registers of demands.

RI-4 CITY COUNCIL COMMITTEES’ ACTIVITIES - Staff recommends City Council receive and file the report.

RI-5 FINDING AND DETERMINING THAT THERE IS A NEED TO CONTINUE TAKING

EMERGENCY ACTION REGARDING THE NEED TO MAKE REPAIRS TO THE BOLIVAR PARK STORMWATER CAPTURE BUILDING AND EQUIPMENT; RESOLUTION NO. 2023-16 - Staff recommends City Council adopt proposed resolution.

In compliance with the Americans with Disabilities Act, if you are a qualified individual with a disability and need an accommodation to participate in the City Council meeting, please contact the City Clerk’s Office, 5050 Clark Avenue, Lakewood, CA, at 562/866-9771, ext. 2200; or at [email protected] at least 48 hours in advance to ensure that reasonable arrangements can be made to provide accessibility to the meeting.

Agenda items are on file in the Office of the City Clerk, 5050 Clark Avenue, Lakewood, and are available for public review during regular business hours. Any supplemental material distributed after the posting of the agenda will be made available for public inspection during normal business hours in the City Clerk’s Office. For your convenience, the agenda and the supporting documents are available in an alternate format by request and are also posted on the City’s website at www.lakewoodcity.org City Council Agenda
April 11, 2023

PUBLIC HEARINGS:

1.1 ORDINANCE NO. 2023-1; AMENDING ARTICLE IX OF THE LAKEWOOD MUNICIPAL CODE PERTAINING TO ACCESSORY DWELLING UNITS (ADUs) AND JUNIOR ACCESSORY DWELLING UNITS (JADUs) - Staff recommends City Council hold a public hearing, introduce the proposed ordinance pertaining to standards and regulations for Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs) and approve the related Notice of Exemption.

1.2 ORDINANCE NO. 2023-2; AMENDING ARTICLE IX OF THE LAKEWOOD MUNICIPAL CODE PERTAINING TO THE PROHIBITION OF SHORT-TERM RENTALS - Staff recommends City Council hold a public hearing, introduce the proposed ordinance and approve the related Notice of Exemption.

REPORTS:

3.1 QUARTERLY BUDGET REPORT OF MAJOR FUNDS AS OF MARCH 31, 2023 - Staff recommends City Council receive and file the report.

AGENDA

LAKEWOOD HOUSING SUCCESSOR AGENCY

1. REGISTER OF DEMANDS - Staff recommends Housing Successor Agency approve register of demands.

ORAL COMMUNICATIONS:

ADJOURNMENT

RI-1
Routine Item 1 – City Council Minutes
will be available prior to the meeting.

CITY OF LAKEWOOD
SUMMARY ACH/WIRE REGISTER MARCH 2023
ACH date Amount Recipient Purpose Period
3/1/23 $5,000,000.00 CAMP City Investment Deposit Mar 2023 3/2/23 $4,000,000.00 CAMP City Investment Deposit Mar 2023 3/3/23 $1,943.70 The Technology Depot Communications Services 1 of 3 Mar 2023 3/3/23 $875.00 LB Meals on Wheels Monthly Contribution Jan 2023 3/8/23 $598,679.80 Various Employee Payroll Feb 19-Mar 4, 2023 3/9/23 $104,105.31 IRS via F&M Payroll - Federal Taxes Feb 19-Mar 4, 2023 3/9/23 $3,460.00 F&A Fed C/U Payroll - Employee Deposits Feb 19-Mar 4, 2023 3/9/23 $6,050.00 Southland C/U Payroll - Employee Deposits Feb 19-Mar 4, 2023 3/9/23 $29,138.23 EDD Payroll - State Taxes Feb 19-Mar 4, 2023 3/10/23 $2,899.47 The Technology Depot Communications Services 2 of 3 Mar 2023 3/10/23 $5,000,000.00 CAMP City Investment Deposit Mar 2023 3/13/23 $3,376.98 MidAmerica Retiree Medical Benefit Feb 19-Mar 4, 2023 3/13/23 $14,450.65 VOYA Payroll -Deferred Compensation Feb 19-Mar 4, 2023 3/13/23 $3,425.00 PARS via U.S. Bank Payroll - Retirement Plan 1 of 2 Feb 19-Mar 4, 2023 3/13/23 $4,293.26 PARS via U.S. Bank Payroll - Retirement Plan 2 of 2 Feb 19-Mar 4, 2023 3/13/23 $33,794.70 VOYA Payroll - Deferred Compensation Feb 19-Mar 4, 2023 3/17/23 $25,473.62 MidAmerica Retiree Medical Benefit Mar 2023 3/17/23 $273.52 The Technology Depot Communications Services 3 of 3 Mar 2023 3/22/23 $102,435.98 IRS via F&M Payroll - Federal Taxes Mar 5-18, 2023 3/22/23 $582,999.24 Various Employee Payroll Mar 5-18, 2023 3/23/23 $3,460.00 F&A Fed C/U Payroll - Employee Deposits Mar 5-18, 2023 3/23/23 $6,050.00 Southland C/U Payroll - Employee Deposits Mar 5-18, 2023 3/23/23 $28,448.58 EDD Payroll - State Taxes Mar 5-18, 2023 3/23/23 $3,249.38 MidAmerica Retiree Medical Benefit Mar 5-18, 2023 3/23/23 $14,149.53 VOYA Payroll -Deferred Compensation Mar 5-18, 2023 3/23/23 $7,823.48 PARS via U.S. Bank Payroll - Retirement Plan 1 of 1 Mar 5-18, 2023 3/23/23 $33,844.70 VOYA Payroll - Deferred Compensation Mar 5-18, 2023 3/24/23 $875.00 LB Meals on Wheels Monthly Contribution Feb 2023 3/24/23 $110,018.01 CalPERS Payroll - Retirement Plan Feb 19-Mar 4, 2023 3/28/23 $120,758.36 CalPERS Employee Medical Premiums Apr 2023 3/28/23 $3,000,000.00 CAMP City Investment Deposit Mar 2023 3/28/23 $110,269.98 CalPERS Payroll - Retirement Plan Mar 5-18, 2023 3/29/23 $163,401.00 CJPIA ADA Loan Installment 4 of 5 Mar 2023 3/30/23 $2,475.00 LCEA Employee Paid Dues Mar 2023
3/30/23 $54.00 Housing Successor Agency Rehab Loan Payment Transfer Mar 2023 Council Approval
Date City Manager
Attest:

City Clerk Director of Finance & Administrative Services

Council Committees’ Activities
April 11, 2023

as the relocation of the existing office trailer and delivery and attachment of the modular office units by Pacific Mobile Structures Inc. at the not-to-exceed price of $61,882.76.

Archiving Information Management Services – ARC
ARC Document Solutions specializes in scanning, imaging, and other document solutions. The City of Lakewood has utilized ARC’s services for plan reprographics for many years. Staff requested a proposal from ARC to digitize the plan and files located in Public Works. The digitizing and indexing of the documents is necessary as we move towards plan and file storage solutions. ARC will retrieve and deliver, or destroy as the city requests, the plans and files from the city, sort and index the files, and then digitize them. The estimated completion is 60-120 business days after the proposal is approved. Public Works has estimated to have approximately 400,000 of small format documents and 12,500 of large format documents. The total cost of the proposal is $48,853.50 based on unit prices. This cost includes $9,802.50 to index and digitize the documents currently stored in the trailer, and $39,051 to index and digitize the documents in the Public Works office. There are enough funds in the PW operating account to cover this expense.

Capital Improvement Program
One of the goals of the Public Works Department is to develop a comprehensive Capital Improvement Program (CIP) to manage citywide projects. The plan will include a list of projects identified over a five-year span, project information sheets,status updates, and potentially software to assist with project tracking. In November 2022, staff issued a service provider contract to Ardurra Group, Inc. to take the initial step in developing a comprehensive five-year CIP plan.

Ardurra will begin to populate the recurring funding and tie out the identified funding gaps as well as commence with resource evaluations. Staff intends to bring a draft of the five-year plan back to this Committee for discussion at the next meeting.

Updates on Approved CIP Projects
Weingart Sr. Center Improvements, Electrical, HVAC, and Roof Improvements, City Hall and Centre Generator Modernization, Mayfair Water Capture Project, Bolivar Emergency Repairs, CD/PW Counter and Shared Space Improvements, Centre Lighting, Ceiling, Carpet Improvements.

On March 28, the Community Promotions Committee met and discussed:

Staff discussed establishing a utility box art program pilot program with five city-owned boxes featuring historic photos near city parks and community centers highly visible to residents. After the pilot program, the goal is to expand the program to boxes adjacent to schools and ask for their submissions for possible designs. Judging for these designs would be a panel of judges similar to that of the Lakewood Beautiful program, consisting of a local art instructor, city staff and a member of the Development Review Board. City would install the art on the utility boxes using a vinyl wrap that will last approximately 3-5 years or be replaced if damaged. New locations will be added as the program matures if it is determined it would bring a positive experience. Staff sought feedback, which will be factored into the concept and presented to another Council Committee with more detailed information on costs and maintenance before going to the Council as a whole.

RESOLUTION NO. 2023-16

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LAKEWOOD FINDING AND DETERMINING THAT THERE

IS A NEED TO CONTINUE TAKING EMERGENCY ACTION

REGARDING THE NEED TO MAKE REPAIRS TO THE

BOLIVAR PARK STORMWATER CAPTURE BUILDING AND

EQUIPMENT
WHEREAS, on September 13, 2022, the City Council adopted Resolution No. 2022-70, finding and determining that it was necessary to take emergency action due to the fact that the Bolivar Park Stormwater Capture Building and Equipment were damaged as a result of a traffic collision; and
WHEREAS, the City has not completed the actions authorized by Resolution No. 2022-70;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKEWOOD HEREBY RESOLVES AS FOLLOWS:

SECTION 1. Based on the evidence contained in the staff report submitted herewith, the City Council finds and determines that there is a need to continue the action authorized by Resolution No. 2022-70.

SECTION 2. The City Manager and his designees are hereby directed and authorized to implement the actions taken by the City Council to address this emergency.

SECTION 3. If any section, subsection, subdivision, paragraph, sentence, clause or phrase in this Resolution, or any part hereof, is held invalid or unconstitutional, such decision shall not affect the validity of the remaining sections or portions of this Resolution. The City Council hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase in this Resolution irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases may be declared invalid or unconstitutional.

SECTION 4. The City Clerk shall certify to the adoption of this Resolution.

ADOPTED AND APPROVED THIS 11TH DAY OF APRIL, 2023.
___________________________________
Mayor
ATTEST:
_______________________________
City Clerk

COUNCIL AGENDA
April 11, 2023
TO: Honorable Mayor and members of the City Council
SUBJECT: Proposed ordinance to revise standards and regulations for both Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs) in conformance with current state laws that became effective on January 1, 2023.

INTRODUCTION
The purpose of the attached ADU Ordinance is to amend current City standards to properly implement revised state laws (SB 897 – Wieckowski and AB 2221 - Quirk-Silva) that became effective on January 1, 2023, concerning the construction and use of Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs). State lawmakers remain concerned about the inadequate supply of affordable housing units in the State of California and find that modifications to the regulations and policies, regarding ADUs and JADUs are necessary to encourage the continued construction of such accessory dwelling units.

On February 14, 2023, the State Housing and Community Development (HCD) Department staff met with Community Development staff at their request, via a zoom call, regarding changes necessary to implement new state ADU laws that became effective on January 1, 2023. Staff prepared the ordinance in accordance with that conversation. The City Council formed an Ad Hoc Committee and reviewed a draft ordinance on March 15, 2023. The full Lakewood City Council then reviewed and provided direction to staff in a study session conducted on March 28, 2023.

On March 29, 2023, the day after the City Council study session, the Community Development Department received an official letter from HCD that identified 18 findings of inconsistency between current Lakewood ADU regulations adopted in 2020 and the new state ADU laws effective on January 1, 2023. HCD gave the City thirty (30) days to respond to this letter and make corrections to our ADU regulations. In response to the HCD findings, staff has made additional modifications to the proposed ADU ordinance and that version of the ordinance is presented at this hearing. Both the HCD letter, and a summary of staff’s responses to the findings are attached. If adopted, staff will send the ordinance to HCD for their review as required by state law, and in compliance with their 30-day deadline for a response to their letter.

On April 6, 2023, the Planning and Environment Commission conducted a public hearing and adopted resolution 2-2023, which recommends that the City Council adopt the proposed ordinance and approve the related CEQA Notice of Exemption.

Council Agenda
April 11, 2023

STATEMENT OF FACTS
The proposed ordinance amendment revises and establishes development standards for ADUs and JADUs that implement new and existing state laws. The proposed amendments are designed to clarify and protect, where possible, local expectations for architectural consistency, neighborhood character and accessibility in the design of ADUs and JADUs. The following is a summary of the more significant amendments:

1. Fees. Ordinance contains authorization to later establish application processing fees for ADUs and JADUs in conformance with California Government Code Section 65852.2 (a) (2). The fees will be established during the adoption of the budget and related fee schedule.

2. Residency Requirement. Ordinance will require ADU residency by the property owner, a “human being”, not a corporation, commencing on January 1, 2025, as allowed by state law.

This will reduce investor driven ADU development, while still allowing resident owner ADUs that are often used for extended family members.

3. Two ADUs on any lot: Ordinance incorporates a recent interpretation from the State Housing and Community Development Department (HCD) that allows two ADUs on any lot with an existing or proposed single-family dwelling unit, irrespective of the underlying zone. One ADU may be allowed only as conversion of existing space with no addition, except an allowed entry porch up to 150 square feet. A second ADU may be allowed only as new construction and it may be attached to or detached from the host residence. HCD also opines that a nonconforming single family dwelling unit on a lot not zoned for single-family residential, such as multiple-family or commercial, may also host up to two ADUs and a JADU, similar to the R-1 zone.

4. Minimum ADU and JADU Areas: The City is required to allow the following:
a) ADUs and JADUs are required to have a minimum area of 150 square feet, as defined in Section 17958.1 of the California Health and Safety Code for an “Efficiency Unit.” b) A JADU shall be allowed a maximum conversion of 500 square feet of existing space and State law changed to allow JADU conversion of attached inhabitable space. c) An ADU may be allowed in a minimum 320 square-foot “manufactured home” as defined in Section 18007 of the Health and Safety Code.
d) An ADU shall be allowed to be no less than a minimum of 850 square feet for a single bedroom unit and no less than 1,000 square feet for two or more bedrooms. The City of Lakewood currently allows a maximum ADU area of 1, 2000 square feet, which allows a family to have three bedrooms.
e) There is no limit on the ADU conversion of an existing accessory structure (e.g., accessory building with 2,000 square feet could be fully converted into an ADU.) f) An ADU or portion thereof is now allowed to convert no less than 800 square feet as a conversion of existing space in a residence irrespective of the percentage of such a conversion. Current regulation requires this to be 50% or less. g) An ADU or portion thereof is now allowed to construct no less than 800 square feet into the front yard without any setbacks. Staff is working on a set of “objective standards” that will discourage such ADU intrusions into the front yard. These will be included in another ordinance in the near future.

5. “R” Occupancy. Ordinance makes a finding that all inhabitable space which is converted to an ADU as habitable space be reclassified and constructed to conform to a building code “R”

STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
March 29, 2023
Abel Avalos, Director
Department of Community Development
City of Lakewood
5050 Clark Avenue
Lakewood, CA 90712
Dear Abel Avalos:

RE: Review of Lakewood’s Accessory Dwelling Unit (ADU) Ordinance under State ADU Law (Gov. Code, § 65852.2)
Thank you for submitting the City of Lakewood (City) accessory dwelling unit (ADU) Ordinance No. 2020-1 (Ordinance), adopted February 11, 2020, to the California Department of Housing and Community Development (HCD). HCD has reviewed the Ordinance and submits these written findings pursuant to Government Code section 65852.2, subdivision (h). HCD finds that the Ordinance does not comply with sections 65852.2, 65852.22, and 65852.26 in the manner noted below. Under that statute, the City has up to 30 days to respond to these findings. Accordingly, the City must provide a written response to these findings no later than April 28, 2023.

The Ordinance addresses many statutory requirements; however, HCD finds that the Ordinance does not comply with State ADU Law in the following respects:
• 9302.1 (B) – Owner Occupancy – The Ordinance states that “a JADU may only be occupied by an independent tenant only when the primary dwelling unit is occupied by the property owner.” However, Government Code section 65852.22, subdivision (a)(2), states that “The [property] owner may reside in either the remaining portion of the structure or the newly created junior accessory dwelling unit.” Therefore, the City must amend the language to allow owner occupancy in either the primary unit or the junior accessory dwelling unit (JADU). • 9302.21a (D)(4)(a) – ADU Height Maximums – The Ordinance makes references to maximum height allowances for ADUs being 16 feet. However, Senate Bill 897 (Chapter X, Statues of 2022) (SB 897) amended Government Code 65852.2, subdivision (c)(2)(D), increasing the maximum height limitation that may be imposed by a local agency on an ADU to 18 feet if the ADU is within one-half mile walking distance of a major transit stop or a high-quality transit corridor or the ADU is detached and on a lot that has an existing multifamily, multistory dwelling.

Abel Avalos, Director of Community Development

SB 897 also amended subdivision (c)(2)(D)(iii) to increase the maximum height limitation that may be imposed to 25 feet if the ADU is attached to a primary dwelling. Therefore, the City must update its allowances of maximum height limitations to conform to changes to state law.
• 9302.21a – ADU Definition – The Ordinance states: “An ADU shall provide a completely independent living facility, including facilities for living, sleeping, eating, cooking, laundry connections and sanitation for one or more persons.” (Emphasis added.) Per Government Code section 65852.2, subdivision (j)(1), an ADU must only include “permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family or multifamily dwelling is or will be situated.” California’s definition of an ADU does not require laundry connections. Therefore, the City must remove “laundry connections” from its definition of an ADU to account for this discrepancy. • 9302.21a (B) – ADU Allowance – The Ordinance states: “The City shall ministerially review…and approve an application for a building permit to create one ADU per lot that has an existing or proposed single-family dwelling unit…” (Emphasis added.) While the Ordinance later specifies JADU allotments, Government Code section 65852.2, subdivision (e)(1)(A), requires local agencies to allow for both one ADU and one JADU per lot with a proposed or existing single-family dwelling (provided they meet certain conditions). Further, the Ordinance fails to clarify that subdivision (e) allows for the combination of (e)(1)(A) and (e)(1)(B) ADUs, leading for the creation of more than “one ADU per lot.” Therefore, the City must modify this language to clarify that state statute allows for one attached ADU and JADU per single-family dwelling as well as for the combination of subdivision (e) ADUs.
• 9302.21a (B) – Discretionary Review – The Ordinance states that “City staff shall review the proposed ADU(s) to ensure architectural compatibility between the proposed ADU and the existing dwelling unit(s). The quality of the materials shall be the same or exceed the quality of the primary unit(s). This review includes coordinating all architectural elements to be consistent and/or compatible with the primary dwelling unit, as follows…” It then lists eight design elements that the City staff shall review. However, “compatibility,” “material quality,” and “consistency” are not “Objective Standards” as defined by Government Code section 65852.2, subdivision (j)(7): “standards that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal.” Government Code section 65852.2, subdivision (a)(1)(B)(i), states that ordinances shall “[i]mpose objective standards on accessory dwelling units that include, but are not limited to, parking, height, setback, landscape, architectural review, maximum size of a unit, and standards that prevent adverse impacts on any real property that is listed in the California Register of Historic Abel Avalos, Director of Community Development

Resources.” Therefore, the City must remove references to non-ministerial approval practices.
• 9302.21a (D)(1) – Existing Habitable Structures – The Ordinance states that “there shall be no more than one ADU or other habitable accessory structure (e.g., guest house) on any lot…” (Emphasis added.) The Ordinance would disallow the creation of an ADU on a lot which already has an existing guest house. However, Government Code section 65852.2, subdivision (a)(7), states, “No other local ordinance, policy, or regulation shall be the basis for the delay or denial of a building permit or a use permit under this subdivision…” Therefore, the presence of a habitable non-ADU structure on a lot cannot preclude the development of an ADU. The City must remove the reference. • 9302.21a (D)(2) – Eave Setbacks – The Ordinance states: “There shall be a minimum 4-foot setback between eaves of an ADU and other detached buildings.” Such a requirement imposes unlawful restrictions for state exempt ADUs covered under Government Code section 65852.2, subdivision (e), which have no such eave setback requirements. Therefore, the City must remove these references or clarify their exceptions.
• 9302.21a (D)(2) – Front Setbacks – The Ordinance states: “No portion of a proposed ADU shall be in the front yard setback area…” However, Government Code section 65852.2, subdivision (c)(2)(C), prohibits “any other minimum or maximum size for an accessory dwelling unit, size based upon a percentage of the proposed or existing primary dwelling, or limits on lot coverage, floor area ratio, open space, front setbacks, and minimum lot size, for either attached or detached dwellings that does not permit at least an 800 square foot accessory dwelling unit with four-foot side and rear yard setbacks to be constructed in compliance with all other local development standards.” (Emphasis added.) Therefore, the City must note that local design requirements, including front setbacks, cannot preclude an ADU of at least 800 square feet, with four-foot side and rear yard setbacks.
• 9302.21a (D)(3) – Conversion Limitations – The Ordinance states that "An ADU shall have a minimum floor area of 150 square feet and shall not exceed 1,200 square feet in area." Government Code section 65852.2, subdivision (a)(1)(D)(iii) allows for ADUs to be located within the propose or existing primary dwelling.

However, State ADU Law does not have size limitations for ADUs converted from existing space of the primary dwelling or accessory structure, as standards provided by the Ordinance pursuant to Government Code section 65852.2, subdivisions (a) through (d), do not apply to ADUs created under subdivision (e) and only subdivisions (e)(1)(B) and (e)(1)(D) positively state a specific maximum size. Therefore, the City should amend the Ordinance to remove size limitation to converted units
Abel Avalos, Director of Community Development

• 9302.21a (D)(5) – Passageway Requirements – Section 5 of the Ordinance states: “Each ADU shall have an independent exterior door to access the ADU with a paved path of travel from it to the public sidewalk.” The section also includes specifications for required passage width and path structure. However, Government Code section 65852.2, sub-division (a)(1)(D)(vi) states: “No passageway shall be required in conjunction with the construction of an accessory dwelling unit.” Therefore, the City must remove this requirement. • 9302.21a (D)(5) – Roof Overhang – The Ordinance states: “The ADU entry door shall be covered with a projecting roof overhang with a porch, unless otherwise approved by the Community Development Director or designee.” This suggests potential for a discretionary review process for the attempted passageway requirements. This is not allowed under Government Code section 65852.2, subdivision (a)(3), which states: “A permit application for an accessory dwelling unit or a junior accessory dwelling unit shall be considered and approved ministerially without discretionary review or a hearing…” Therefore, the City must state the conditions under which an overhang may not be ministerially required or remove this section.
• 9302.21a (D)(8) – Water, Traffic Flow and Public Safety – The Ordinance states that “the City may deny an application for a detached ADU, unless otherwise allowed by Government Code section 65852.2, subdivision (e), based on a determination that there is inadequate water or sewer services to serve the ADU and/or that the ADU will create impacts on traffic and public safety.” The Ordinance appears to be referencing Government Code section 65852.2, subdivision (a)(1)(A). However, this section states that an ordinance authorizing ADU development in a jurisdiction shall “[d]esignate areas within the jurisdiction of the local agency where accessory dwelling units may be permitted. The designation of areas may be based on the adequacy of water and sewer services and the impact of accessory dwelling units on traffic flow and public safety.” While the statute authorizes the designation of whole areas that are suitable for ADU development, the Ordinance appears to interpret this as a matter of individual ADU application approvals. This would be a misinterpretation and a violation of subdivision (a)(1)(A), which requires local agencies to designate areas where ADUs may be permitted. Therefore, the City must clarify this point. • 9302.21a (D)(8)(b) – Fire Flow – The Ordinance states: “An ADU and all portions of the related dwelling unit shall be within 450 feet of a fire hydrant with a clear path to run a fire hose from the fire hydrant to all parts of the proposed ADU and the related dwelling unit.” Please clarify whether the 450 feet requirement is applicable to all residential developments. If this section applies exclusively to ADUs, then it may violate Government Code section 65852.2, subdivision (a)(8), which states, “This subdivision establishes the maximum standards that local agencies shall use to evaluate a proposed accessory dwelling unit on a lot… No additional standards, other than those provided in this subdivision, shall be used Abel Avalos, Director of Community Development

or imposed….” Please clarify whether the requirement exists for all residential development; if it does not, the City must remove the section. • 9302.21a (D)(10) – Garage and Other Building Conversions – The Ordinance states: “Conversions of existing structures shall not leave any shadowing of previous doors and windows. Such doors and windows shall be fully removed including framing. The remaining wall will be reconstructed with stucco or alternate siding material that leaves no sign of the previous installations. Existing garage floors shall be appropriately retrofitted to be flat with moisture barriers and raised to comply with adopted building codes.” However, local development standards provided by the Ordinance pursuant to Government Code section 65852.2, subdivisions (a) through (d), do not apply to ADUs created under Government Code section 65852.2, subdivision (e) – as all conversions would be. Therefore, the City must remove this section or change it to a recommendation.
• 9302.21a (D)(11)(b) and (E)(3); 9302.21.b (D)(2) and (E)(4) – Short Term Home-Share Rental – The Ordinance states in several instances that ADUs and JADUs shall not be rented as “short-term home-share rentals”. This appears to reference AirBnB or Vrbo type rentals that are less than 30 days. Government Code section 65852.2, subdivision (a)(8)(C), states that a local agency may require that an ADU be used for rental longer than 30 days. The City should define what qualifies as “short term” by indicating that rentals must be at least 30 days.
• Section 6 (C)(3) – JADU Passageway – The Ordinance states: “Each JADU shall have an independent exterior door to access the JADU with a paved path of travel from it to the public sidewalk. All exterior access doors and gates along the required path of travel shall be a minimum 36" wide.” However, Government Code section 65852.22, subdivision (a)(5), only authorizes a local agency to require a separate entrance for a JADU, it does not require a paved path from the JADU to the sidewalk. The City should remove this requirement from the Ordinance.
• 9302.21a (E)(1) – Separate Sale – The Ordinance requires a “Notice of Condition” with a clause prohibiting the separate sale of an ADU from its primary dwelling. However, Government Code section 65852.26 creates a narrow exception to allow separate conveyance of an ADU to a qualified buyer if the property was built or developed by a qualified non-profit corporation, among other things. The City must revise the Ordinance to allow for such an exception. • 9302.21b Introduction and (A) – JADUs in Proposed Dwellings – The Ordinance allows for JADUs “within an existing legally established and maintained singlefamily dwelling unit…” However, JADUs may be created within proposed singlefamily dwelling units. Government Code section 65852.22, subdivision (a)(1), provides for the creation of JADUs in “single-family residences with a singlefamily residence built, or proposed to be built, on the lot.” Therefore, the City Abel Avalos, Director of Community Development

must add “proposed single-family dwellings” anywhere it establishes where JADUs may be created.

In response to the findings in this letter, and pursuant to Government Code section 65852.2, subdivision (h)(2)(B), the City must either amend the Ordinance to comply with State ADU Law or adopt the Ordinance without changes. Should the City choose to adopt the Ordinance without the changes specified by HCD, the City must include findings in its resolution that explain the reasons the City finds that the Ordinance complies with State ADU Law despite the findings made by HCD. Accordingly, the City’s response should provide a plan and timeline to bring the Ordinance into compliance.

Please note that, pursuant to Government Code section 65852.2, subdivision (h)(3)(A), if the City fails to take either course of action and bring the Ordinance into compliance with State ADU Law, HCD may notify the City and the California Office of the Attorney General that the City is in violation of State ADU Law.

HCD appreciates the City’s efforts provided in the preparation and adoption of the Ordinance and welcomes the opportunity to assist the City in fully complying with State ADU Law. Please feel free to contact Nicholas Green, of our staff, at (916) 841-6665 or at [email protected].

Sincerely,
Shannan West
Housing Accountability Unit Chief
SUMMARY OF RESPONSES TO HCD LETTER (3/29/2023)

1. JADU owner resident occupancy allowed in any dwelling unit on a lot.

Response: This is already clarified in the proposed ordinance.

2. ADU max height was a minimum of 16 feet, now it is 18 feet.

Response: This was previously increased to 35 feet, however in terms of Front Yard ADUs, the maximum height will be limited to 25 feet if attached and 18 feet if detached.

3. Do not require “laundry connections.”
Response: Reference to “Laundry Connections” has been removed.

4. TWO ADUs allowed per lot in addition to one JADU.

Response: Proposed ordinance reflects this policy change.

5. Delete Architectural “Consistency,” “Compatibility” as they are not objective standards.

Response: Terms have been removed from the ordinance. However staff disagrees, if one unit has wood siding and the other has stucco, they are objectively different and not consistent or compatible.

6. Delete the “Guest House” example as TWO ADUs are allowed.

Response: The reference to “Guest House” has been removed, however staff will review any guest house or other habitable structure (e.g. SB9 2nd DU) and determine if it meets the definition of an ADU, and if so, they will be counted as an ADU.

7. Delete requirement for the four-foot eave to eave setback.

Response: Staff has clarified in the ordinance that this applies only to new construction and not ADU conversions.

8. ADU allowed in FRONT YARD up to 800 SF.

Response: This was already included in the proposed ADU ordinance.

9. Clarify that there is no maximum on an ADU conversion.

Response: This has been clarified in the proposed ordinance.

10. No “passageway requirement” for ADU or JADU.

Response: This language was removed previously, refers to 3-foot path-of-travel.

11. Delete Director discretion in requiring porched entry.

Response: This language was removed, HCD was concerned that the Director could use discretion to waive a porched entry. Now it will be required or returned for redesign.

12. Clarify that a declaration of inadequate utilities or traffic infrastructure applies to all new detached residential development and not just one ADU.

Response: The revised proposed ordinance was clarified to address this observation.

13. Clarify that the max. 450 feet to a Fire Hydrant applies to all.

Response: The standard applies to all residential development. No change required,

14. Change standard for garage conversion from “shall” to “should.” Response: The revised proposed ordinance was clarified to do so. This addressed the city’s desire to fully remove the garage door and remove any shadowing.

15. Define “Short – Term Rental.”
Response: This term is defined elsewhere in the Municipal Code,

16. Clarify Separate sale exception for Non-profit ownership.

Response: The revised proposed ordinance was clarified to address this observation.

17. No “passageway requirement” for JADU.

Response: This language was removed previously.

18. JADUs now allowed in attached Non-Habitable (e.g., garage.) Response: The proposed ordinance does address this change.

ORDINANCE NO. 2023-1

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

LAKEWOOD AMENDING ARTICLE IX OF THE LAKEWOOD

MUNICIPAL CODE PERTAINING TO STANDARDS, REVIEW

PROCEDURES AND REGULATIONS FOR ACCESSORY

DWELLING UNITS AND JUNIOR ACCESSORY DWELLING
UNITS
WHEREAS, new state laws which became effective on January 1, 2023 will impact local control over the approval process and the design and use of Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs); and
WHEREAS, those laws provide that, beginning on January 1, 2023, and until a local jurisdiction adopts local laws in conformance with those new state laws, the local rules for approval and the ability to apply local objective design standards to Accessory Dwelling Units and Junior Accessory Dwelling Units will default to the state laws and standards for all purposes; and
WHEREAS, the purpose of this Ordinance is to update and modify current City development standards and authorize any allowed processing fees, regarding the construction of ADUs and JADUs as necessary to conform to the current state law and policy, as effective on January 1, 2023, and further by reference to those laws, as amended from time to time thereafter, in order to better facilitate urban construction and knowledge of ADU’s objective standards.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKEWOOD, CALIFORNIA, DOES ORDAIN AS FOLLOWS:

SECTION 1. The City Council finds and determines that each of the findings set forth above is true and correct.

SECTION 2. INTENT. Article IX of the Lakewood Municipal Code is amended as provided in this Ordinance to revise standards and regulations for Accessory Dwelling Units (ADUs) and to revise standards and regulations for Junior Accessory Dwelling Units (JADUs) consistent with recent changes in state laws and pursuant to public hearings before the Planning and Environment Commission and the City Council. This shall include authorization to establish application processing fees for ADUs and JADUs in conformance with California Government Code Section 65852.2 (a) (2) and to impose an ADU property owner residency requirement commencing on January 1, 2025, as allowed by state law.

SECTION 3. PURPOSE. The purpose of this Ordinance is to amend current City standards to properly implement revised state laws that became effective on January 1, 2023, concerning the construction and use of ADUs and JADUs. Among the new state laws adopted in 2022 being addressed by this ordinance are SB 897 (Wieckowski) and AB 2221 (Quirk-Silva).

Ordinance No. 2023-1

State lawmakers remain concerned about the inadequate supply of affordable housing units in the State of California and find that modifications to the regulations and policies, regarding ADUs and JADUs necessary to encourage the continued addition of such residences as one source of such housing.

It is the intent of the City to implement state law to develop alternative housing units while maintaining local control of standards. ADUs and JADUs are an alternative affordable housing option for all tenants and specifically for extended family members, the elderly, the disabled, students, and others that are otherwise economically or physically challenged.

SECTION 4. Subsection 9302.1 of the Lakewood Municipal Code, regarding the definition of Accessory Building is amended to read as follows:
9302.1. ACCESSORY BUILDING. A subordinate building on the lot or building site, the use of which is incidental to that of any primary main building on the lot, and which is used exclusively by the occupants of any primary main building on the lot as allowed by zoning or state law, except for use by tenants of either: 1) One or two Accessory Dwelling Units (ADUs) as provided by Section 9302.21a; as further defined currently in California Government Code Section 65852.2, and as it may be subsequently amended from time to time in the future and/or 2) a Junior Accessory Dwelling Unit (JADU) as provided by Section 9302.21b; as further defined currently in California Government Code Section 65852.22, and as it may be subsequently amended from time to time in the future. The ADU and JADU accessory uses are further regulated by the following:

A. Definitions. Words and terms as used in ADU and JADU regulations of this Code are defined as follows:

1. Human Being. In the context of property ownership, a “human being” is an individual that is not a corporation or other legal entity and that is otherwise considered to be a legal “person.” A “human being” may be a property owner who owns real property and holds title to that property in their name as: an individual, community property, a member of a joint tenancy, a tenant in common, a trustee or benefactor of a trust or a partner of a partnership, but not as an officer of a corporation or other such legal entity.

2. Multifamily Dwelling Unit. This refers to a unit that is attached to one or more dwelling units on a lot. However, it does not include multiple detached individual dwelling units on a lot zoned for multiple family dwelling units or mixed-use development.

3. Multiple-Family. This term refers to a City established residential zoning district that allows more than two detached or attached primary dwelling units on a lot.

4. Objective Standards. This means standards that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both, the development applicant or proponent and the public official, prior to submittal.

5. Primary Legal Residence. The primary domicile and permanent home of the property owner as a legal resident of the State of California and as determined by the State of California for the purposes of taxation. Proof of such residency shall be demonstrated by the property owner presenting to the City a current unexpired valid copy of one of the Ordinance No. 2023-1

following showing the address of the subject property as their primary legal residence: a California driver’s license, a California Real ID, or other State of California identification card and/or a Federal Government issued United States passport or Military ID.

6. Property Owner. This term includes all persons owning a piece of real property but may be specifically limited for some regulations to be only an individual “human being,” and it shall include their heirs, successors, and assigns.

B. ADU/JADU Occupancy. An ADU and/or JADU as defined above may be occupied by the property owner or rented/leased by a tenant, who may or may not be affiliated with the primary dwelling unit occupant as a family member. The property owner for the purposes of this section shall be a “human being” who owns the property under their name, and not as a corporation or other legal entity. Owner-occupancy shall not be required if the owner is a governmental agency, land trust or housing organization.

1. ADU. The property owner of an ADU is required to reside on the property as follows:
(a) An ADU permitted prior to January 1, 2025, shall not require the property owner to reside on the property to be issued a permit to construct and/or to rent/lease the ADU to a separate person.
(b) An ADU permitted on or after January 1, 2025, shall require the property owner, a human being, to reside on the property in a permitted dwelling unit as their “primary legal residence” in order to be issued a permit to construct and/or to rent/lease the ADU to a separate tenant. The property owner, a human being, shall reside either in an ADU or in a primary dwelling unit on the same lot as the ADU that then may be rented/leased to a separate tenant. Otherwise, any ADU and the host primary dwelling unit shall be occupied by the same tenant and shall not be sublet to another person, as a separate tenant.

2. JADU. The property owner, a human being, of any JADU shall be required to reside on the property as their primary legal residence. They may reside in the JADU or in another permitted ADU or primary dwelling unit on the lot with the JADU. Otherwise, if the property owner does not reside on the property as their “primary legal residence,” the JADU, and the remainder of the dwelling unit in which the JADU is located, shall be rented/leased, and occupied by the same tenant, a human being, and their family and shall not be sublet to any other person.

C. Accessory Buildings and Height. All accessory buildings, including an ADU or JADU, shall be constructed or maintained in conformance with the development standards of the zone district in which they are located, including the allowed maximum height, except as otherwise provided in this Chapter.

SECTION 5. Section 9302.21a of the Lakewood Municipal Code, regarding an Accessory Dwelling Unit (ADU) is amended to read as follows:
9302.21a. DWELLING UNIT, ACCESSORY (ADU). An Accessory Dwelling Unit (ADU) shall mean one or two attached or detached additional dwelling units that are allowed to be located on the same lot or parcel, that has either: 1) a single-family primary dwelling unit as the main building and primary use in zone districts that allow single-family dwellings or is a non-conforming use in zone districts that do not, or 2) a primary multifamily dwelling unit complex of two or more attached units, as the main buildings and primary use in zone districts Ordinance No. 2023-1

that allow such multifamily dwelling units or mixed use developments. The primary dwelling unit that is host to an ADU shall be either an existing or concurrently proposed primary dwelling unit.

Prior to final inspection of an ADU, the hosting primary dwelling unit shall be completed with a successful final inspection allowing occupancy that is completed prior to, or concurrently with, a successful final inspection of the ADU, allowing ADU occupancy. Any required demolition plan check for a detached garage conversion or allowed ADU replacement structure shall be processed with permits and inspections concurrently with those required for the ADU.

The proposed construction of an ADU may be: 1) a modification of an existing or proposed permitted primary dwelling unit, or an existing or proposed permitted accessory building or 2) the construction of a new attached or detached accessory building. ADUs are allowed in all zone districts allowing single-family and multiple-family dwelling units, as well as those allowing mixed uses.

An ADU shall provide a completely independent dwelling unit, including facilities for living, sleeping, eating, cooking, and sanitation for one or more persons. An allowed ADU includes a minimum 150 square-foot “efficiency unit” as defined in Section 17958.1 of the California Health and Safety Code and a minimum 320 square-foot “manufactured home” as defined in Section 18007 of the Health and Safety Code. ADUs shall comply with the following standards:

A. ALLOWED ADUs. ADUs shall only be allowed as follows:

1. Single Family Residential. The City shall ministerially approve through an application for a Building and Safety plan check to permit no more than two (2) ADUs per lot within zoning districts that allow single-family dwelling units or where there is an existing non-conforming single-family residence, as follows:
(a) One ADU is allowed only as a conversion of existing or proposed floor area of an existing or proposed dwelling unit or an existing or proposed accessory building that is either attached to or is detached from the primary dwelling unit that is host to the ADU; and/or
(b) One ADU is allowed only as new construction of an attached or detached ADU.

These ADUs shall be in combination with either an existing or proposed host singlefamily dwelling unit within zoning districts that allow single-family dwelling units or as an existing non-conforming single-family dwelling unit within zoning districts that do not allow single-family dwelling units. The zone districts that allow single-family dwellings are: R-1 (Single-Family Residential), R-A (Single-Family Residential Limited Agriculture), A (Agriculture), and PD- SF (Planned Unit Development – Single Family). In addition to the two allowed ADUs on such lots, a JADU and a second primary dwelling unit are also allowed as elsewhere specified by this Code and state law. In no instance shall the combination of allowed dwelling units exceed more than four (4) dwelling units on any lot existing on January 1, 2022 zoned and/or used for single-family dwelling unit purposes.

2. Multiple-Family Residential. The City shall ministerially approve through an application for a Building and Safety plan check to allow no more than two external fully detached ADUs within an existing or proposed multifamily complex with two or more attached units on a lot zoned for either multiple-family residential uses or mixed uses.

Ordinance No. 2023-1

In addition, at least one more internal attached ADU is allowed to be created from existing or proposed non-habitable space within the existing or proposed multifamily dwelling unit or mixed-use residential building, including their attached garages. In addition to these three allowed ADUs within any multifamily dwelling unit or mixed-use complex, more internal ADUs are allowed to be created from existing or proposed non- habitable residential space, provided the total number of such internal ADUs does not exceed twenty-five percent (25%) of the number of the existing or proposed primary multifamily attached dwelling units permitted on the property. Any remaining percentage resulting in a partial unit shall be rounded down to the next full unit.

Zoning districts that allow multifamily dwelling unit complexes are the M-F-R (MultipleFamily Residential), PD-MF (Planned Unit Development – Multiple Family) Zones and any mixed-use zone districts that allow multifamily dwellings. In the MFR, PD-MF, and any mixeduse zone district, there shall be an existing or proposed primary multifamily residential dwelling unit complex with two or more attached units to host ADUs in compliance with multifamily ADU standards. A non-conforming single dwelling or multiple detached dwelling units on such lots may host ADUs, in conformance with procedures for zone districts allowing single-family residential uses.

B. ADU Construction. An ADU shall be constructed as one of the following: a) a new fully detached accessory building; b) an addition to an existing or proposed primary or accessory structure; or c) a remodel and conversion of existing or proposed space contained within either an existing or concurrently proposed primary dwelling unit or an existing or concurrently proposed accessory structure, including, but not limited to, a garage, carport, studio, pool house, or other similar structure.

C. ADU REVIEW. The City shall ministerially review building permit applications for any proposed ADUs, in conformance with this Code and with Section 65852.2 of the California State Government Code, as currently adopted and as subsequently amended from time to time, in the future. ADUs shall be approved in accordance with the following:

1. Building and Safety Review. Prior to the City accepting an application for Building and Safety plan check review to permit a proposed ADU, all plans, materials, and associated fees necessary for such a review shall be submitted, reviewed, and accepted as complete. These materials shall include all required plans, structural calculations, Title 24 energy calculations, and all other documents required for the plan check and code compliance review to commence. These plans and related materials shall all be properly prepared in an accurate complete manner and compliant with all related City adopted versions of the uniform construction codes, Lakewood Municipal Code regulations along with any locally approved objective development standards and application procedures.

Failure to provide all required materials in a proper and accurate manner shall result in the application not being accepted for processing and returned as incomplete. In the instance when plans are not accepted or are denied, they shall then be returned to the property owner or designated representative accompanied with a full set of written comments listing the items that are defective or deficient and a description of how the application can be remedied.
(a) Screening. Among the required materials to be submitted to Building and Safety shall be a site plan, roof plan, floor plan and elevations that have been screened and confirmed by planning to comply with the objective design standards contained in or Ordinance No. 2023-1

referenced by the Lakewood Municipal Code and state law. This pre-building permit application screening review shall be completed by city planning through the Ministerial Staff Review (MSR) procedure.
(b) Host Home. No ADU shall receive a final inspection until there is an existing primary residential dwelling unit on the property to host the ADU. (c) Demolition. Building and Safety shall review, process, and permit any required demolition plan concurrently with the proposed ADU for any detached garage conversion or an ADU replacement structure within the same footprint as the detached garage that is proposed to be demolished.

2. Sixty-Day Review. The overall review time between the acceptance of the Building and Safety plan check application as complete with all required materials, full payment of applicable fees and the date the permits are issued shall not exceed 60 business days. If the City has not approved or denied the completed application for Building and Safety plan check and issued building permits within 60 business days, the application shall be deemed approved. However, failure by the property owner to provide in a timely and correct manner any requested materials, documents, calculations, corrected plans and/or payment of fees shall be grounds for denial of the project and termination of the 60-day review timeline, as determined appropriate by the Director of Community Development. (a) Defect Notification. In the instances when plans that have been accepted for review are subsequently denied, the 60-day limit will be terminated, and the plans shall be returned by the City to the property owner or designated representative accompanied with a full set of written comments from the City listing the items that are defective or deficient and a description of how the application can be remedied.

Once the plans are resubmitted and are successfully accepted as complete, then a new 60-day processing timeline shall be initiated.
(b) Good Faith Processing. The property owner shall act in good faith and respond in a timely manner when corrections are requested. If it is determined that it will take more than 5 business days to respond, then the property owner should file an extension of time to continue the processing timeline beyond the 60-day limit. Failure by the property owner to respond in a reasonable and timely manner by submitting corrected plans or by requesting a time extension shall be grounds for denial of the project, as determined appropriate by the Community Development Director before the lapse of the 60-day review period.

3. ADU Delayed Enforcement. Upon a written request by a property owner proposing an ADU, the City shall delay enforcement of any violations of building standards (e.g., unpermitted construction) for five years, where such enforcement would delay the ADU construction and where the Community Development Director has determined that the enforcement of the standard is not necessary to protect public health or safety.

Notwithstanding the above, there shall be no required delay of enforcement actions seeking correction of unpermitted or unsafe conditions that are not otherwise related to the construction of the proposed ADU.

D. ADU DEVELOPMENT STANDARDS. The following standards are required for the construction of an ADU:

1. Existing Habitable Accessory Structures. In addition to a primary dwelling unit and one allowed JADU, there shall be no more than two ADUs or any other -permitted Ordinance No. 2023-1

habitable structures (e.g., SB9 2nd DU). A maximum of four dwelling units, including one JADU, are allowed on a lot in any zone allowing single-family residential uses. In the instance of a lot in a zone district allowing single family residential dwelling units, created after January 1, 2022, there shall be no more than two dwelling units of any type on such lots, including the primary dwelling unit, and then either an ADU, a JADU and/or a second dwelling unit, as allowed by state law.

2. ADU Setbacks. An ADU shall have minimum setbacks, as follows:
(a) Side Yard. Minimum of four (4) feet.
(b) Rear Yard. Minimum of four (4) feet.
(c) Front Yard. Minimum of twenty (20) feet, unless otherwise authorized by this Code. Notwithstanding this, a proposed ADU or a portion of an ADU that is no more than eight hundred (800) square feet in area may project into the front yard setback area, as allowed by state law and Subsection 9383.3 H of this Code. (d) Eave to Eave. Minimum 4-foot setback between eaves of any new construction on a lot, unless attached.
(e) Existing Structures. No additional setback shall be required for construction of an ADU, that is a conversion of an existing living area or an accessory structure or that is construction of an ADU that replaces an existing building in the same location with the same dimensions as it was prior to demolition. Also, an addition of no more than 150 square feet for ingress and egress is allowed.
(f) Fire Access. All setbacks shall be sufficient for fire and safety access, as determined by the Los Angeles County Fire Department.

3. ADU Floor Area. An ADU shall have a minimum floor area of 150 square feet and shall not exceed 1,200 square feet in area, unless it is a proposed conversion of an existing structure or portion thereof, then it may exceed 1200 square feet. If the ADU is attached to or a conversion of the existing primary single-family dwelling unit, the maximum floor area of the ADU shall not exceed fifty percent (50%) of the floor area of the existing single- family dwelling unit, provided that a minimum of eight hundred (800) square feet in area is allowed to be converted or expanded to become an ADU. In such an instance, then it may occupy more than fifty percent (50%) of the existing building.

4. ADU Height. A proposed ADU shall not exceed the following heights:
(a) New Construction. The maximum height limit of an ADU shall not exceed two and one-half stories or thirty-five (35) feet from finished grade to the highest roof ridge. When the proposed ADU is a horizontal expansion of an existing building, it shall match and maintain the height and style of the roof to which it is attached.

However, a vertical expansion above an existing building is allowed to be no more than thirty- five (35) feet in height. (e.g., ADU above an existing garage) (b) Height. The height limit of an ADU that is a conversion of an existing or proposed properly permitted structure shall be the height of that structure. (c) Loft. An ADU may contain a loft as allowed by the adopted building codes. (d) Front Yard. If an ADU is in the front yard, the maximum roof height shall be twenty-five (25) feet if attached and eighteen (18) feet if fully detached.

5. ADU Exterior Access. Each ADU shall have an independent exterior door, covered with a projecting matching roof and porch or a trellis to cover the ADU entry door. The Ordinance No. 2023-1

sole access path to the ADU shall not travel through any portion of the habitable living area of the existing single-family dwelling unit.

6. ADU Parking. One additional parking space shall be required for an ADU, unless any of the following applies, then existing parking spaces do not have to be replaced:
(a) The ADU is located in a conversion of an existing or proposed garage, carport or other covered parking structure or a replacement structure thereof. (b) The ADU is part of the existing or proposed primary residence or an existing or proposed accessory structure.
(c) The ADU is located within a traversable distance of one-half mile of public transit.
(d) The ADU is within an architecturally and historically significant historic district. (e) On-street parking permits are required but are not offered to an ADU occupant. (f) A car share vehicle is located within one block of the ADU.

7. ADU – Minimum 800 Square Feet Allowed. Construction of an ADU shall not be subject to any zoning regulations regarding standards for size based upon a percentage of the existing or proposed primary dwelling, or limits on lot coverage, floor area ratio, open space, front yard setback area, and/or a minimum lot size, that would prevent construction of an ADU that is at least eight hundred (800) square feet in area with fourfoot side and rear yard setback areas. Such ADUs shall be constructed in compliance with all other local development standards.

8. ADU Utility and Infrastructure Adequacy. The City may determine that there are areas in the City that have inadequate utility capacities for either source, storage distribution/collection and/or treatment of one or more of the following utilities: potable water, fire flow, sewer, and electricity. The City may deny any application for a new residential unit in such areas based on that determination, including a new detached ADU. The utilities serving an ADU attached to an existing residential dwelling unit are considered to be a part of, or an expansion of, the existing primary dwelling unit and shall not be subject to this determination.
(a) Electrical. Each proposed fully detached ADU is required to install photovoltaic solar energy panels to offset electrical demand per state law and to be prewired to accommodate storage batteries and dedicated circuits as stipulated by State law. All other ADUs are encouraged to install such panels.
(b) Fire. An ADU shall be within 450 feet of a fire hydrant with a clear path to run a fire hose from the fire hydrant to all parts of the proposed ADU. Fire sprinklers shall not be required for an ADU, if they are not required for the primary dwelling unit or a related multifamily attached dwelling unit complex.

9. ADU Accessibility. ADUs attached or detached shall incorporate into their design accommodations for potential occupants with mobility challenges, as specifically listed as objective design standards in or referenced by this code.

10. Garage and Other Building Conversions. Conversions of existing structures should not leave any shadowing of previous doors and windows. Such doors and windows should be fully removed including framing. Remaining walls should be reconstructed with siding or stucco that leaves no sign of the previous installations. Any sloped floors shall be appropriately retrofitted to be flat with approved moisture barriers and comply with adopted building codes.

Ordinance No. 2023-1

11. ADU - Group R Occupancy Finding. A finding is made per California Government Code Section 65852.2 (a)(1)(D)(viii) that it is required for the continuing overall public health and safety of the City of Lakewood residents, that the construction of an ADU or JADU, including any conversion of an existing properly permitted non- habitable space or space designated as nonresidential that is proposed to be habitable residential space, shall be classified and constructed as a Group R occupancy per the local building code and as described in Section 310 of the California Building Code (Title 24 of the California Code of Regulations). Failure to do so would create an ongoing adverse impact to the overall general public health and safety of the residents of the City of Lakewood, as well as the specific neighborhood in which the ADU or JADU is located.

Notwithstanding the above, this finding shall not require the installation of fire sprinklers, unless otherwise required by the Fire Department, based on other regulations in conformance with state law.

12. ADU Rental.
(a) Residency. The property owner, a human being, of an ADU is required to reside on the property as their primary legal residence and permanent domicile in accordance with the residency requirements specified in Section 9302.1 B. and in accordance with current state law at the time a permit is issued, or a rent/lease agreement is signed by a tenant.
(b) Rental Terms. The rent/lease of an ADU shall adhere to the following:
(1) An ADU shall only be rented/leased for thirty-one (31) days or more. (2) An ADU shall not be rented as a short-term home-share rental. (c) ADU Notice of Condition (NOC). A NOC shall be recorded for every ADU permitted on or after January 1, 2025, and as otherwise determined necessary and as modified by the Director of Community Development. The NOC shall state, but shall not be limited to, the following requirements:
(1) Residency. The ADU or another permitted dwelling unit on the same lot shall be occupied by the property owner, a human being, as their “primary legal residence” or in the instance where the property owner does not reside on the same lot or the property owner is a legal entity other than a human being, then the ADU shall not be rented, leased or sublet separate from the tenant occupying the primary single family dwelling unit that is host to the ADU. (2) The ADU shall only be rented/leased for thirty-one (31) days or more. (3) The ADU shall not be rented as a short-term home-share or whole home rental for less than thirty one (31) days.
(4) The ADU shall not be sold independently of the primary dwelling unit that is host to an ADU, except as otherwise authorized by state law. (5) The ADU shall continually be operated and maintained in compliance with current regulations of the Lakewood Municipal Code and any objective development standards therein authorized, State Law, and the City adopted versions of the California Uniform Building Codes.
(6) These restrictions shall run with the land and shall be binding on any heir, assign or other successor in ownership of the property.

Ordinance No. 2023-1

SECTION 6. Section 9302.21b of the Lakewood Municipal Code, regarding the definition of a Junior Accessory Dwelling Unit (JADU) is amended to read as follows:
9302.21b. DWELLING UNIT, JUNIOR ACCESSORY (JADU). A Junior Accessory Dwelling Unit (JADU) is an additional dwelling unit that is allowed to be converted from existing or proposed floor area within an existing or proposed single-family dwelling unit or an adjacent and existing or proposed attached accessory building. A JADU shall provide living and sleeping facilities for one or more persons. A JADU shall have an independent efficiency kitchen with cooking appliances, food preparation counter, and storage cabinets. The JADU may have separate sanitation facilities or may share a bathroom and laundry facilities with the primary dwelling unit, provided the JADU has an internal door to access the primary dwelling unit. In the instance where the JADU has a bathroom, the existing single-family residence shall then have another separate bathroom for use of that dwelling unit.

A. JADU ALLOWED ZONES. JADUs shall only be allowed within the following zone districts: R-1 (Single-Family Residential), R-A (Single-Family Residential Limited Agriculture), A (Agriculture), and PD-SF (Planned Unit Development – Single Family).

JADUs are not allowed in any other zone district, unless there is an existing non-conforming previously permitted single-family dwelling unit in another zone district. The City shall ministerially approve an application for a building permit to create one JADU in an existing or proposed single-family dwelling unit.

B. JADU REVIEW. The City shall ministerially review building permit applications for proposed JADUs, in conformance with Section 65852.22 of the California State Government Code, as currently adopted and as subsequently amended from time to time in the future.

JADU building permit applications shall be accepted, reviewed, and approved in accordance with the same Building and Safety review procedures listed for ADUs in Section 9302.21a. C of this code, including provisions regarding pre-application screening, application acceptance, defect notification, an existing host home, good faith processing, the 60-day review limitation and delayed enforcement of unpermitted construction, if applicable.

C. JADU DEVELOPMENT STANDARDS. All JADUs shall conform to all property development regulations of the zone in which the property is located. In addition, the following are the standards required for the construction of a JADU:

1. JADU Floor Area. A JADU shall have a minimum floor area of 150 square feet and shall not exceed 500 square feet in area.

2. JADU Exterior Access. Each JADU shall have an independent exterior door to access the JADU. The exterior JADU doorway should be covered. Each JADU may have a doorway that connects it to the habitable living area of the existing or proposed singlefamily dwelling unit in which it is located. The JADU shall have such an internal doorway if it does not have an additional and separate bathroom within the JADU. The host single family residence shall have at least one bathroom outside of any that is in the JADU.

3. JADU Accessibility. JADUs shall incorporate into their design, where possible, accommodations for potential occupants with mobility challenges.

4. JADU Rental. The occupancy of a JADU shall adhere to the following:
(a) Property Owner Residency. The JADU or another permitted dwelling unit on the same lot shall be occupied by the property owner, a human being, as their primary Ordinance No. 2023-1

legal residence or in the instance where the property owner does not reside on the same lot or the property owner is a legal entity other than a human being, then the JADU shall not be rented, leased or sublet separate from the tenant occupying the primary single family dwelling unit in which the JADU is located and from which it was converted. The residency shall conform to Section 9302.1 B. of this code and in accordance with current state law at the time a permit is issued, and at the time a tenant signs a rent/lease agreement.
(b) Rental Terms. The rent/lease of a JADU shall adhere to the following:
(1) A JADU shall only be rented/leased for thirty-one (31) days or more. (2) A JADU shall not be rented as a short-term home-share or whole-home rental for less than thirty one (31) days.
(c) JADU Notice of Condition (NOC). A NOC shall be recorded regarding each JADU referencing the related lot or parcel. The NOC shall state but shall not be limited to the following requirements:
(1) Residency. The JADU or another permitted dwelling unit on the same lot shall be occupied by the property owner, a human being, as their primary legal residence or in the instance where the property owner does not reside on the same lot or the property owner is a legal entity other than a human being, then the JADU shall not be rented, leased or sublet separate from the tenant occupying the primary single family dwelling unit in which the JADU is located and from which it was converted.
(2) The JADU shall only be rented or leased for thirty-one (31) days or more. (3) The JADU shall not be rented as a short-term home-share rental. (4) The JADU shall not be sold independently of the primary dwelling unit that is host to a JADU.
(5) The JADU shall continually be operated and maintained in compliance with current regulations of the, Lakewood Municipal Code and any objective development standards therein authorized or referenced, State Law, and the adopted uniform building codes.
(6) These restrictions shall run with the land and shall be binding on any heir, assign or other successor in ownership of the property.

SECTION 7. Subsections A, B, C, and D of Section 9322.7 of the Lakewood Municipal Code, pertaining to accessory buildings in the R-1 (Single-Family Residential) zone are amended to read as follows:
9322.7 ACCESSORYBUILDINGS. Private garages or accessory buildings, may be constructed as follows:

A. No private garage or other non-habitable accessory building shall be located less than three (3) feet from the rear or side lot line, except that any structure used as a private garage or other non-habitable accessory building and located within the rear fifty percent (50%) of the lot may be located no less than one (1) foot from the side lot line, which does not abut a street. No accessory structure, including ADUs shall be constructed in such a manner to allow any stormwater or other drainage from its roof to fall offsite from the lot on which the structure is located and such drainage shall then not subsequently drain on to adjacent private Ordinance No. 2023-1

property without the benefit of an easement allowing such drainage. Drainage shall be directed from the lot on to public right-of-way and stormwater facilities in a manner determined acceptable by the Public Works Director.

B. Any accessory building used or designed for human habitation, including an ADU shall be located no less than four (4) feet from any rear and/or side lot lines.

C. No detached accessory building, ADU or garage shall be located less than four (4) feet from any other building as measured between the eaves of each building.

D. No accessory structure such as, but not limited to, garages, workshops, sheds, or greenhouses shall be used as living quarters except for an ADU as defined in Section 9302.21a or if attached to the primary dwelling unit a JADU as defined in Section 9302.21b. …
SECTION 8. Section 9386 of the Lakewood Municipal Code, pertaining to Accessory Buildings is amended to read as follows:
9386. ACCESSORY BUILDINGS. Accessory buildings may be constructed and maintained subject to the limitations and provisions of this Chapter. Lofts are allowed in accessory buildings that comply with adopted building codes. No accessory structure, such as, but not limited to, garages, workshops, sheds, or greenhouses, shall be used as living quarters, except as allowed for an ADU as defined in Section 9302.21a. and/or a Junior Accessory Dwelling Unit (JADU) as provided in LMC Section 9302.21b and/or converted to a primary second dwelling unit as otherwise allowed by this Code and California state law.

SECTION 9. Section 9477 of the Lakewood Municipal Code, pertaining to the PD (Planned Development) Zone Regulations is amended to read as follows:
9477. Applicable Provisions. Except where inconsistent with the provisions of this Part, all other provisions of this Chapter shall apply to the PD Zone, including the authority to add ADUs and a JADU to any single-family dwelling unit and to add multiple ADUs to a multifamily dwelling unit complex of attached units in accordance with the provisions of this Chapter and state law for such multifamily attached units.

SECTION 10. CEQA. This Ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b) (3), which is the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment, and CEQA does not apply where it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment. This Ordinance has no impact on the physical environment as it will only modify administrative procedures and not result in any changes to the physical environment.

SECTION 11. SEVERABILITY. If any section, subsection, subdivision, paragraph, sentence, clause, phrase or portion of this Ordinance or its application to any person or circumstance, is for any reason held to be invalid, unenforceable, or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the Ordinance No. 2023-1

remaining portions of this Ordinance or its application to any other person or circumstance. The City Council declares that it would have adopted this Ordinance and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, paragraph, sentences, clauses, phrases, or portions thereof be declared invalid, unenforceable, or unconstitutional.

SECTION 12. CONTINUITY. To the extent the provisions of the Lakewood Municipal Code as amended by this Ordinance are substantially the same as the provisions of that Code as they read immediately prior to the adoption of this Ordinance, then those provisions shall be construed as continuations of the earlier provisions and not as new enactments.

SECTION 13. CERTIFICATION. The City Clerk shall certify to the adoption of this Ordinance and shall post a certified copy of this Ordinance, including the vote for and against same, in the Office of the City Clerk, in accordance with Government Code Section 36933. The City Council finds and determines there are no newspapers of general circulation both published and circulated within the City and, in compliance with Section 36933 of the Government Code, directs the City Clerk to cause the ordinance within 15 days after its passage to be posted in at least three (3) public places within the City as established by Ordinance.

SECTION 14. EFFECTIVE DATE. This Ordinance shall be posted or published as required by law and shall take effect thirty (30) days after its adoption.

ADOPTED AND APPROVED this ____ day of ___________, 2023, by the following roll call vote:

AYES NAYS ABSENT
Mayor Croft
Council Member Chase
Council Member Pe
Council Member Rogers
Council Member Wood
_____________________________
Mayor
ATTEST:
_____________________________
City Clerk

Short-Term Rentals
April 11, 2023

that recently passed State housing legislation has encouraged short-term rental operators to purchase homes, build ADUs, and “flip” them as investment properties by listing them as short-term rentals. Despite State law prohibiting such use, it is ultimately the responsibility of the City to enforce. With the demand for short-term rentals increasing and a concerted effort from Airbnb itself to increase listings specifically in California, staff anticipates local oversight challenges to grow.

LICENSED SHORT-TERM RENTALS
The five currently-licensed short-term rentals have been problematic for various reasons, including parking compliance, LASD calls for service from neighbors, delinquent business license and TOT payments, and possible misleading or false information provided on license applications that staff is reviewing for possible enforcement or revocation.

It is difficult to estimate the amount of revenue that short-term rentals may generate for the City.

While they are each required to pay $40 annually for their business license, the TOT revenue component is dependent on their self-reporting the level of use to the City. As a majority of those licensed are delinquent on their TOT, staff is lacking data to accurately estimate TOT revenue.

Based on the few operators that have paid their TOT, staff’s estimate is that roughly $1,000 in total annual revenue per rental could be generated for the City. With five short-term rentals currently licensed in the City, a projected revenue stream of $5,000 per year would only be enough to offset the annual cost of the software purchased by the City to assist in providing short-term rental compliance. In the end, the minimal revenue does not offset staff costs and LASD resources utilized.

ADDITIONAL INFORMATION
In response to a 2019 shooting that left four people fatally injured at a Halloween-themed short-term rental house party in Northern California, the California legislature passed Senate Bill

60. It allows for an increase in the maximum amount of administrative fines for violations of an agency’s short-term rental ordinance, from $100-$500 per violation to $1,500-$5,000 per violation. The City has implemented these enhanced fines and successfully used them to shut down a non-compliant operator. Unfortunately, the scope of the enhanced fines is limited to violations that “pose threats to the public’s health and safety,” not just those operating without a business license.

Staff also recently conducted a short-term rental survey of fourteen neighboring cities (attached) and found that the City’s ordinance is not consistent with the position of most other area cities.

Eleven of the 14 cities surveyed have total bans on short-term rentals.

PROPOSED CHANGES
The City Council held a study session on March 14, 2023 to discuss this matter and subsequently directed staff to prepare a draft ordinance amending the current municipal code for the City’s Planning and Environmental Commission to consider and provide a recommendation. The proposed ordinance allows all short-term rentals permitted prior to March 1, 2023, to continue operating through June 30, 2024. All rentals, however, must cease after that date. Any currently

ORDINANCE NO. 2023-2

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

LAKEWOOD PROHIBITING SHORT TERM RENTALS

THE CITY COUNCIL OF THE CITY OF LAKEWOOD DOES ORDAIN AS FOLLOWS:

SECTION 1. The following new Subsection F.3. is added to Section 9320 of the Lakewood Municipal Code:
“3. All Short Term Rentals, and any advertising for such, shall be prohibited after June 30, 2023, except as set forth in this subsection. Any property at which there is a valid Short Term Rental Permit which was issued pursuant to the applicable provisions of Title VI of this Code prior to March 1, 2023, may continue to host Short Term Rentals through June 30, 2024, after which date the prohibition shall apply and such Rentals must cease. Any such pre-existing Permit shall be null and void as of June 30, 2023, unless its use is fully compliant with all provisions in this Code pertaining to Short Term Rentals, including but not limited to the full payment of all fees and taxes owed to the City through that date. Thereafter, any Permit remaining in effect shall be automatically and immediately canceled in the event of any violation of any provision of this Code pertaining to Short Term Rentals, including but not limited to delinquency in the payment of any fees or taxes owed to the City. Any violation of any provision of this Code pertaining to Short Term Rentals shall be subject to the issuance of an Administrative Citation pursuant to the procedures set forth in Section 4900, et seq., of this Code, in addition to any other applicable remedies, and any such Citation shall bear a fine in the maximum amount authorized by State law.” SECTION 2. CEQA. This Ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3), which is the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment, and CEQA does not apply where it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment. This Ordinance has no impact on the physical environment as it will only modify administrative procedures and not result in any changes to the physical environment.

SECTION 3. SEVERABILITY. If any section, subsection, subdivision, paragraph, sentence, clause, phrase or portion of this Ordinance or its application to any person or circumstance, is for any reason held to be invalid, unenforceable or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance or its application to any other person or circumstance. The City Council declares that it would have adopted this Ordinance and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, paragraph, sentences, clauses, phrases, or portions thereof be declared invalid, unenforceable, or unconstitutional.

Ordinance No. 2023-2

SECTION 4. CERTIFICATION. The City Clerk shall certify to the adoption of this Ordinance and shall post a certified copy of this Ordinance, including the vote for and against same, in the Office of the City Clerk, in accordance with Government Code Section 36933. The City Council finds and determines there are no newspapers of general circulation both published and circulated within the City and, in compliance with Section 36933 of the Government Code, directs the City Clerk to cause the Ordinance within 15 days after its passage to be posted in at least three (3) public places within the City as established by Ordinance.

SECTION 5. EFFECTIVE DATE. This Ordinance shall be posted or published as required by law and shall take effect thirty (30) days after its adoption.

ADOPTED AND APPROVED this ____ day of ___________, 2023, by the following roll call vote:

AYES NAYS ABSENT
Mayor Croft
Council Member Chase
Council Member Pe
Council Member Rogers
Council Member Wood
_____________________________
Mayor
ATTEST:
_____________________________
City Clerk

Quarterly Budget Report
April 11, 2023

Following is a summary of the General Fund expenditure activities:

General Fund revenues through the third quarter are also tracking as expected and according to annual seasonal trends. Not surprisingly, at 61.8% YTD, revenues lag behind the 75% marker for the third quarter. The delay stems from larger revenue sources necessarily having to flow through state and county collection processes prior to receipt by the City. Additionally, some large revenues are received as single payments later in the fiscal year (i.e. SCE and Gas Company franchise fees). In contrast, the City's Business License Tax is mostly collected at the beginning of the fiscal year when licenses are renewed in-line with the City’s fiscal year. Additional (but relatively fewer) Business License Tax revenues are received throughout the rest of the year from new businesses or contractors coming into the city, with this year's receipts already exceeding budget estimates. Likewise, YTD investment earnings (included in the Use of Money & Property category) at 185.7% of the Budget Estimate have risen dramatically and reflective of the steep increase in investment yields.

Sales tax revenue amounts look to remain strong. Specifically, the Bradley-Burns portion is anticipated to provide $17,700,000 for the year, having generated $11,016,505 so far, while Measure L is expected to produce $13,800,000, with $8,430,298 YTD. Receipts for both revenues are remitted via the State and included in the “books” for the current fiscal year through the end of August.

Following is a summary of the General Fund revenues:

ACCOUNT DESCRIPTION
BUDGET

ESTIMATE
YTD
EXPENDITURES % SPENT
EMPLOYEE SERVICES 25,664,940 17,712,293 69.0%
CONTRACT SERVICES 29,684,209 18,224,482 61.4%
FACILITIES EXPENSE 2,239,358 1,448,919 64.7%
OFFICE EXPENSE 162,532 140,300 86.3%
MEETING EXPENSE 168,400 93,022 55.2%
SPECIAL DEPT SUPPLIES 2,104,243 982,997 46.7%
OTHER OPERATING EXP 3,052,056 2,623,236 85.9%
OPERATIONAL EXPENDITURES $ 63,075,738 $ 41,225,249 65.4% CIPS / CAPITAL OUTLAY 7,802,215 1,156,786.00 14.8%
TOTAL EXPENDITURES $ 70,877,953 $ 42,382,035 59.8%
Quarterly Budget Report
April 11, 2023

Water Utility Enterprise Fund
At 45.1% YTD, overall Water expenses are tracking under budget. Similar to trending with General Fund expenditures, there is a time lag in receiving and processing incurred costs.

Additionally, the Other Operating Expenses category includes payments to the Water Replenishment District (WRD) which are lower YTD as a result of the heavy rains and consequently purchasing less water than anticipated. Furthermore, the City is able to achieve a level of savings having paid lower prior-year rates in advance last summer for the ability to pump “carryover” water rights this fiscal year. Below is an overall summary of the various Water Utility Enterprise Fund expense activities:

ACCOUNT DESCRIPTION
BUDGET

ESTIMATE
YTD
REVENUES % REC'D
PROPERTY TAXES 6,556,000 3,858,913 58.9%
SALES TAX - BRADLEY BURNS 17,700,000 11,016,505 62.2%
SALES TAX- MEASURE L 13,800,000 8,430,298 61.1%
OTHER TAXES 89,000 - 0.0%
FRANCHISE FEES 1,560,000 426,827 27.4%
BUSINESS LICENSE TAX 691,200 701,887 101.5%
DOCUMENTARY TRANSFER TAX 280,000 187,481 67.0%
TRANSIENT OCCUPANCY TAX 90,000 54,566 60.6%
UTILITY USERS TAX 3,350,000 2,544,691 76.0%
LICENSES & PERMITS 1,916,300 1,556,621 81.2%
FINES / FORFEITURES / PENALTIES 682,100 475,764 69.7%
USE OF MONEY & PROPERTY 619,350 1,150,326 185.7%
FROM OTHER AGENCIES 11,391,000 5,787,201 50.8%
CURRENT SERVICE CHARGE 10,558,450 7,462,651 70.7%
BUDGETED TRANSFERS 4,296,600 1,822,550 42.4%
TOTAL REVENUE $ 73,580,000 $ 45,476,281 61.8%
Quarterly Budget Report
April 11, 2023

Not surprisingly, water revenues are trending lower. Metered water sales are the largest revenue source and highly sensitive to weather patterns, varying from year to year depending on rainfall experienced. Given the extraordinary amount of rainfall this year, staff has been adjusting anticipated Metered Water Sales revenue more than prior years. As described earlier with the General Fund, investment earnings have experienced an unanticipated increase. Below is an overall summary of the various Water Utility Enterprise Fund revenues:

ACCOUNT DESCRIPTION
BUDGET

ESTIMATE
YTD

EXPENSES
%
SPENT
EMPLOYEE SERVICES 3,166,628 2,222,529 70.2%
CONTRACT SERVICES 1,089,600 650,348 59.7%
FACILITIES EXPENSES 2,752,750 2,053,611 74.6%
OFFICE EXPENSES 3,250 1,908 58.7%
MEETING EXPENSES 8,250 2,722 33.0%
SPECIAL DEPT SUPPLIES 871,629 342,338 39.3%
OTHER OPERATING EXP 5,345,018 1,095,553 20.5%
INTERDEPT TRANSFERS 127,000 55,140 43.4%
BUDGETED TRANSFERS 1,795,700 1,346,775 75.0%
OPERATIONAL EXPENSES $ 15,159,825 $ 7,770,925 51.3%
CIPs / CAPITAL OUTLAY 2,756,700 315,037 11.4%
TOTAL EXPENSES $ 17,916,525 $ 8,085,962 45.1%

ACCOUNT DESCRIPTION
BUDGET
ESTIMATE YTD REVENUES % REC'D
INVESTMENT EARNINGS $ 105,000 $ 149,587 142.5%
RENTS AND CONCESSIONS 61,800 45,738 74.0%
ENERGY UTILITY REBATES 10,000 4,965 49.7%
OTHER REVENUE 822,525 644,647 78.4%
METERED WATER SALES 11,183,550 7,350,864 65.7%
METERED WTR SALES-INTERCONNECT 1,241,150 757,648 61.0%
FIRE PROTECTION SERVICES 172,425 98,952 57.4%
RECLAIMED WATER 545,000 352,537 64.7%
SERVICE INITIATION FEES 42,000 20,325 48.4%
SERVICE RESTORATION CHARGES 10,000 - 0.0%
TOTAL REVENUES $ 14,193,450 $ 9,425,263 66.4%