March 8, 2022
Agenda Item No. 11
TO:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:
Seimone Jurjis, Community Development Director - 949-644-3232, [email protected] PREPARED BY:
Tonee Thai, Acting Deputy Community Development Director/Chief Building Official, [email protected] PHONE:
949-718-1867
TITLE:
Ordinance No. 2022-8: An Amendment Authorizing Staff to Extend the Time to Complete Construction for One-Unit and Two-Unit Family Dwellings ABSTRACT:
On April 23, 2019, the City Council adopted Ordinance 2019-8, setting a three-year time limit to complete construction of one-unit and two-unit family dwellings. Any extension of time would have to be applied for and heard by a hearing officer through a public hearing. Since the adoption of the ordinance, the COVID-19 pandemic has disrupted supply lines for certain building materials and affected labor availability, causing delays in completing construction within three years. For the City Council's consideration is an amendment to the Newport Beach Municipal Code (NBMC) to grant the Building Official authority to extend projects subject to the three-year time limit up to an additional 365 calendar days.
RECOMMENDATION:
Find this action exempt from 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; and b) Waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2022-8, An Ordinance of the City Council of the City of Newport Beach, California, Amending Section 15.02.095 of the Newport Beach Municipal Code Authorizing an Extension of the Time Limit to Complete Construction for an Additional Year, and pass to second reading on March 22, 2022.
DISCUSSION:
On April 23, 2019, the City Council adopted Ordinance No. 2019-8, establishing a three-year time limit for completing construction projects of one-unit and two-unit family dwellings. Commercial and multifamily residential projects are not subject to the ordinance. The ordinance provides a process to extend the time of completion by filing an application with the City Clerk, which would be heard by a hearing officer at a noticed public hearing. The hearing officer may grant an extension of up to 180 calendar days, if they find special circumstances warrant an extension of time or the failure to meet the time limit was caused by circumstances beyond the property owner’s control. It should be noted that a property owner may request additional extensions of time, but it would be the hearing officer’s responsibility to make the finding to grant the extension for each request.
After Ordinance No. 2019-8 took effect in June 2019, the COVID-19 pandemic caused disruptions in the construction industry. Due to disruptions in the supply chain, some construction material deliveries continue to be delayed. Impacts to labor have also affected the timing of project completion. As a result, certain construction projects that could have been completed before the three-year time limit have been unintentionally delayed to a point an extension is now needed to complete them.
Approximately 165 one-unit and two-unit dwelling projects are expected to be subject to the three-year time limit to complete construction (Attachment C) in June 2022. All of the 165 projects will require an extension of time for completion. After June, it is estimated that an average of 25 projects per month would be subject to the three-year time limit for completion and will require further extensions of time.
Cost to Property Owner
Pursuant to Ordinance No. 2019-8, if the property owner would like to request an extension of the time limit to complete their project beyond the three-year limit, they would file an application, accompanied by the filing fee, with the City Clerk to have the request heard by a hearing officer.
Draft Ordinance
Due to the high number of projects that are subject to the three-year time limit, and in order to facilitate a more efficient process, staff proposes that an amendment be considered. The proposed ordinance (Attachment A) gives the Building Official authority to review the status of the project and only grant an extension of time if it is determined the extension is necessary to complete the project. The Building Official has authority to extend the time limit to complete the project by up to 365 calendar days. If the Building Official determines that a 365-day extension of time will not result in the completion of the project, then the applicant would have to apply for an extension with a hearing officer.
The hearing officer will hold a public hearing and may grant additional time not greater than 180 calendar days. If the project is not completed in the time granted by the hearing officer, then the applicant may reapply for another extension.
FISCAL IMPACT:
Subject to City Council approval, and in an effort to fully recover the City’s costs related to the review process of extension requests, the proposed ordinance includes a fee to be accompanied with the application for the first, one-year extension to the Building Official, as well as a fee to be accompanied with the application for subsequent extension requests to the hearing officer. The cost to the applicant will be set on a per application basis through the forthcoming user fee study update that will be before the City Council for consideration in April 2022. The fee for the first one-year extension request to the Building Official will include the estimated staff time associated with the review of that application. The fee for the hearing will include the administrative staff time of scheduling a hearing officer, the estimated time of the hearing officer, and the public notice that is required.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action 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. The adoption of the amendment does not authorize new development or change the density or intensity of any potential future development.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A – Ordinance No. 2022-8
Attachment B – Redlined Ordinance
Attachment C – Expiring Permits Chart
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Ordinance No. 2022-8: An Amendment Authorizing Staff to Extend the Time to Complete Construction for One-Unit and Two-Unit Family Dwellings March 8, 2022
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