CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
10/16/2023
1 SUBJECT:
Continued joint study session of City Council and Planning Commission to consider and provide direction on the Draft 2023-2031 Housing Element of the General Plan.
RECOMMENDED ACTION:
Receive a presentation and provide direction regarding outstanding items on the Draft 2023- 2031 Housing Element of the General Plan.
STAFF CONTACT:
Christian Murdock, AICP, Planning Director
(650) 738-7341
[email protected]
BACKGROUND/DISCUSSION:
September 25 Study Session
The City Council and Planning Commission held a joint study session on September 25 to consider revisions to the Draft Housing Element (Attachment A), to provide an opportunity for these decision makers to ask questions and provide direction on preparation of the revised Draft Housing Element in response to the California Department of Housing and Community Development’s (HCD’s) August 8, 2023, comment letter on the first Draft Housing Element (Attachment B – red numbering assigned by staff to aid references in this staff report). The Study Session also provided an additional public input opportunity for the community. The public was also invited to submit written public comments. The staff report from the September 25 joint study session is available on the City Council Meeting Portal1.
During the joint study session, the City Council and Planning Commission were asked to provide direction on a number of proposed new or modified policy and site approaches so that staff could revise the Housing Element before returning to the Planning Commission and City Council for adoption and re-transmittal to HCD, as described in the “Next Steps” section below.
The City Council and Planning Commission provided direction on the majority of items on which input was requested, and continued the joint study session to conclude the discussion at a continued meeting.
Outstanding Key Policy Items for City Council and Planning Commission Discussion The table below summarizes the outstanding key policy items on which staff requires City Council and Planning Commission feedback. Staff has removed from the table those items initially presented on September 25 and for which clear direction has already been provided.
The remaining items include two items on sites that were not discussed at the September 25 joint study session, one item on sites on which staff would like any additional feedback, and an item on which the City Council and Planning Commission desired staff to pursue an alternative 1 https://pacificacityca.iqm2.com/Citizens/FileOpen.aspx?Type=1&ID=1495&Inline=True Pacifica City Council 2
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approach other than noted in the September 25 staff report.
Comment Number
& Description
Discussion & Staff Recommendation
B.3.1
Reorganization of
Housing Sites
Inventory
HCD has asked for more clarity on which sites in the Housing Site Inventory the City is counting towards its RHNA obligations and which sites are considered as surplus or “buffer” sites. Staff has restructured the Housing Sites Inventory to provide clarity on this point as demonstrated in Attachment C. These changes, along with others such as those necessary to address HCD comments on infrastructure constraints (Comment B.3.9), suitability of nonvacant sites (Comment B.3.4), and direction provided on September 25 to remove Site 26 (Caltrans Quarry) and Site 36 (Sea Bowl), have resulted in some changes to the numbers of units in each income category and the total number of units proposed for inclusion in the Housing Site Inventory, as shown in the table below.
For purposes of this table, “Core RHNA” sites are those indicated as necessary to comply with the City’s RHNA. “Surplus Sites” are those not required to comply with the City’s RHNA but which count towards the City’s buffer above the RHNA. Ample buffer units are important to ensure the City’s ongoing compliance with “No Net Loss” provisions of state law.
Lower Income Moderate
Income
Above
Moderate
Income
TOTAL
RHNA
Requirement
848 291 753 1,892
Core RHNA 851 312 898 2,061
Surplus Sites 396 108 32 536
TOTAL 1,247 420 930 2,597
Buffer Above
RHNA*
47% 44% 24% 37%
* The Buffer Above RHNA calculations include the following numbers of units from Core RHNA sites in excess of the required RHNA: Lower Income - 3 units; Moderate Income - 21 units; and, Above Moderate Income - 145 units.
A map showing the updated Housing Site Inventory is included as Attachment D. This updated map distinguishes between Core RHNA sites, Surplus Sites, and Sites with Existing Capacity.
Update from September 25 Joint Study Session: The City Council and Planning Commission provided direction to remove Site 26 (Caltrans Quarry) and Site 36 (Sea Bowl), as noted above. These will be removed from the maps after final direction on sites upon conclusion of the joint study session.
In addition, staff is providing clarification that the mapped parcels in Attachment D consistent of the entire Assessor Parcels for the respective sites, although in some cases more particular site polygons will reduce the area or specific location of the Housing Element site to a subarea of the Assessor Parcel. The map in Attachment D is illustrative of the general locations of Housing Element sites in Pacifica while the specific Housing Element site location is controlled by the associated more specific polygon on sites for Pacifica City Council 3
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which a polygon has been prepared.
B.3.2.B
AB 2011 Sites
The Draft Housing Element relied on the provisions of Assembly Bill (AB) 2011 that established a by-right development process for qualifying sites locating along major highways. The Draft Housing Element had identified seven sites along the Highway 1 corridor:
● Site 10: 4275 Coast Hwy, Lumberyard
● Site 12: Former Caltrans right-of-way, now private property
3. Site 18: Linda Mar Park & Ride
4. Site 27: Pacific Manor Shopping Center
5. Site 32: Brentwood Shopping Center
6. Site 34: Vallemar Station
7. Site 36: Sea Bowl
However, HCD commented that the City must include local examples of sites redeveloping with qualifications similar to those required under AB 2011, in order to demonstrate that the sites could qualify for development under AB 2011. Due to the recency of the law (it was enacted in 2022), and the City’s maximum development density of 21.8 dwelling units per acre under the previous 1980 General Plan, the City is unable to provide this analysis.
Alternatively, HCD indicated the City could rezone to the assumed 60 dwelling units per acre for these sites. Based on the reorganization of the Housing Site Inventory as described above under Comment B.3.1, the following sites would be rezoned to 60 dwelling units per acre:
CORE RHNA SITES
1. Site 10: 4275 Coast Hwy, Lumberyard (49 units, Moderate)
2. Site 18: Linda Mar Park & Ride (54 units, Lower)
3. Site 27: Pacific Manor Shopping Center (115 units, Above Moderate with Below-market Rate Inclusionary)
4. Site 32: Brentwood Shopping Center (97 units, Lower) CORE RHNA TOTALS: 160 Lower + 57 Mod + 98 Above Mod = 315 Total Units
SURPLUS SITES
5. Site 12: Former Caltrans, now private (169 units, Lower)
6. Site 34: Vallemar Station (97 units, Lower)
SURPLUS SITE TOTALS: 266 Lower Income Units
A decision not to rezone these sites to 60 dwelling units/acre density may require increases in density on other sites in the Housing Site Inventory.
Update from September 25 Joint Study Session: The City Council and Planning Commission provided direction to remove Site 36 (Sea Bowl) from the Housing Site Inventory. Site 36 is a surplus/buffer site and will be removed after final direction on sites upon conclusion of the joint study session.
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B.3.9
Infrastructure
Constraint
(Rockaway Beach
Pump Station)
HCD commented on the infrastructure constraint identified in the Draft Housing Element related to wet-weather capacity of the Rockaway Beach Pump Station, a sewer pump station used to convey wastewater from the pump station’s catchment area to the Calera Creek Water Recycling Plant. The approximate catchment area is included as Attachment E.
In response, staff revised the Housing Site Inventory to dramatically reduce the number of units in the catchment area from approximately 700 to approximately 180 units. Staff is continuing to analyze whether this reduction in units, combined with already planned capital improvements to replace all sewer main lines in the catchment area, will result in a sufficient reduction in inflow and infiltration (I&I) to accommodate the new sewer flows generated by the 180 units included in the catchment area in the Housing Site Inventory. I&I during rainfall events is the most significant contributing factor to the Rockaway Beach Pump Station capacity limitation, which the sewer main line replacement is intended to address. The pump station has sufficient capacity during periods of dry weather.
Without pursuing this analytical approach, revisions to the Housing Site Inventory would be necessary to relocate the approximately 180 units of capacity to other areas in the city.
Update from September 25 Joint Study Session: The City Council and Planning Commission provided direction to remove Site 26 (Caltrans Quarry) and Site 36 (Sea Bowl) from the Housing Site Inventory. Both of these sites are surplus/buffer sites.
Staff needs confirmation that no other changes to sites located within the Rockaway Beach Pump Station catchment area are desired.
B.3.2.C
100%
Nonresidential Sites
HCD commented that the City’s Housing Site Inventory included commercial sites that allow residential use, but that also would allow 100% nonresidential uses such as commercial offices or retail. HCD’s concern may be related to other jurisdictions in the Bay Area where strong commercial development demand, such as for biotech offices, may result in commercial-only development of mixed-use sites. Staff does not believe market conditions in Pacifica are likely to result in these types of development outcomes in the eight-year Housing Element cycle. However, a response to HCD’s comment is still necessary.
Update from September 25 Joint Study Session: Staff’s interpretation of HCD’s comment and recommendation based on its experience and professional judgment is indicated in the report for the September 25 joint study session. Feedback received at the September 25 joint study session reflected a consensus to not include a program to revise the City’s General Plan and zoning regulations to make a 100 percent residential project a permitted use in the applicable commercial/mixed use zoning districts. Based on that feedback, staff proposes a revised approach to address the comment, as summarized below:
1. Demonstrate Past Development Resulted in Mixed Use
Pacifica’s recent experience with approved development projects has shown a strong market for mixed-use commercial and residential Pacifica City Council 5
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development projects and few 100% commercial projects. This has been true even in zoning districts where either 100% commercial or mixed commercial/residential projects could be allowed. These approved projects demonstrate that market conditions are such that mixed-use projects are most likely to develop, even under the prior maximum mixed-use density of 21.8 dwelling units per acre. The analysis is further reinforced when considering that the allowable residential density for mixed use projects under the Housing Element will increase to a range of 30-60 dwelling units per acre, an increase of 36-172% over prior densities. This strengthens the economic case that a strong financial incentive will exist to undertake mixed-use development considering residential use is the more profitable of the two land use types in Pacifica’s local market.
2. Clarify that General Plan Land Use Designations and Zoning Regulations Will Require Mixed-use Development
The City’s Mixed Use land use designations in the General Plan and zoning regulations to be developed to implement the Housing Element will require mixed use commercial and residential development at the minimum densities specified therein. Therefore, residential development will be a required component of development in all mixed use designated sites, and sites included in the Housing Site Inventory will not allow or result in development of 100% commercial (i.e., nonresidential) projects.
Public Comments
Public comments on this item received prior to agenda publication are included as Attachment F.
Community Engagement
As noted in the staff report for the September 25 Study Session, public input has been an important part of the process to prepare the Draft Housing Element. The City has provided numerous public input opportunities that have included online and in-person engagements. The community engagement strategy was developed with City Council input and the City Council approved the strategy on August 8, 2022. The City held three community meetings in late-2022 (one online and two in-person) to seek community input for the Housing Element Update (HEU) to address RHNA 6 and guide its work to prepare the Draft Housing Element.
The City also conducted a City Council-Planning Commission joint study session on March 21, 2023, provided a written public review and comment period from February 24 through March 27, 2023, and held three Planning Commission meetings to discuss ODS on June 19, August 21, and September 5, 2023.
A full discussion of the extensive community engagement process undertaken through transmittal of the Draft Housing Element to HCD for review is included in Appendix A:
Community Consultation of the Draft Housing Element (Attachment A).
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Next Steps
Feedback from the City Council and Planning Commission on the outstanding items described above is essential to staff’s revision of the Draft Housing Element in response to HCD’s August 8 comment letter. Following this study session, staff will complete the revisions to the Draft Housing Element to incorporate the feedback received. Staff estimates that preparation of the next draft of the Draft Housing Element will take another four to six weeks after the study session.
Once the Draft Housing Element has been updated, staff will release a Negative Declaration for public review and comment to comply with the California Environmental Quality Act (CEQA), followed by scheduling Planning Commission and City Council public hearings to consider adoption of the Housing Element. Adoption of the Housing Element after revisions in response to HCD’s comment letter is consistent with the actions taken by other Bay Area jurisdictions following receipt of their HCD comment letters. Following adoption, staff will then transmit the adopted Draft Housing Element to HCD for a 60-day review period. The potential exists for HCD to have additional comments on the adopted Housing Element which may require further revisions. Staff will request that the Council, when adopting the Housing Element, authorize staff to make revisions that are requested by HCD to achieve certification and that are consistent with Council direction. More substantive revisions could require readoption by City Council before the City achieves certification.
ALTERNATIVE ACTION:
This is a study session and staff is requesting input from the City Council and Planning Commission. Adoption of the Housing Element will occur at a future public hearing with public notice provided as required by law.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
The Housing Element Update is consistent with the following item(s) in the Council-adopted Strategic Plan and Priority Work Plan for FY 2023-24:
● Goal 3: Prioritize protection and development of affordable housing. ○ Strategy A: Complete the Housing Element Update.
FISCAL IMPACT:
There is no direct fiscal impact from the joint study session.
ORIGINATED BY:
Planning Department
ATTACHMENT LIST:
Attachment A - Draft Housing Element - May 10, 2023 (HCD Review Version) (PDF) Attachment B - HCD Comment Letter on First Draft Housing Element (with numbering) (PDF) Attachment C - Revised Housing Site Inventory Tables (DOCX) Attachment D - Revised Housing Site Inventory Maps (PDF) Attachment E - Rockaway Beach Pump Station Catchment Area Map (PDF) Attachment F - Public Comments (PDF)