Placentia Cit Council
TO: CITY COUNCIL
VIA: CITY ADMINISTRATOR
FROM: DIRECTOR OF DEVELOPMENT SERVICES
DATE: JULY 5, 2022
AGENDA REPORT
SUBJECT: INTRODUCTION AND FIRST READING OF ORDINANCE NO. 0-2022-07, AMENDING SECTION 22.28.021 (URBAN LOT SPLIT) AND CHAPTER 23.13 (TWO -UNIT HOUSING DEVELOPMENT) TO INCORPORATE OBJECTIVE
STANDARDS WITHIN SINGLE-FAMILY RESIDENTIAL DISTRICTS IN CONNECTION WITH THE IMPLEMENTATION OF SENATE BILL 9 (ZONING CODE AMENDMENT 2022-03)
FISCAL
IMPACT: NONE
SUMMARY:
Senate Bill 9 (SB 9) was approved by Governor Gavin Newson on September 16, 2021. It was effective starting on January 1, 2022 and provides for the ministerial approval of urban lot splits and housing development containing no more than two residential units on a lot in single family residential zones.
On January 18, 2022, Urgency Ordinance No. 0-2022-01 (Attachment 2) was adopted by City Council amending Title 22 (Subdivisions) to create an urban lot split process and amending Title 23 (Zoning) of the Placentia Municipal Code to create a process for the construction of two residential units per lot pursuant to the implementation of Senate Bill 9. At that time, Staff was directed to return to the Planning Commission to consider a possible recommendation to the City Council of a non -urgency version of an ordinance designed to comply with Senate Bill 9.
The Planning Commission conducted study sessions regarding the subject draft Ordinance on April 12, 2022 and May 10, 2022. Based on input received at those meetings, Staff prepared a final draft SB9 Ordinance that was presented to the Planning Commission on June 14, 2022. The Planning Commission reviewed the draft ordinance and recommended approval to the Council.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Open the public hearing concerning Ordinance No. 0-2022-07; and
2. Receive the Staff report, consider all Public Testimony, ask any questions of Staff; and
2.a.
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3. Close the public hearing; and
4. Find that adoption of Zoning Code Amendment No. 2022-03 is categorically exempt from environmental review and direct Staff to file a Notice of Exemption, pursuant to CEQA Section 15061(b)(3); and
5. Waive full reading, by title only, and introduce for first reading, Ordinance No. 0-2022-07, an Ordinance of the City Council of the City of Placentia, California, finding that approval of Zoning Code Amendment No. 2022-03 is not a "project" under the California Environmental Quality Act (CEQA) pursuant to SB 9 as adopted by the State of California; and, approving Zoning Code Amendment No. 2022-03, an Ordinance of the City of Placentia, California amending Section 22.28.021 (Urban Lot Split) And Chapter 23.13 (Two -Unit Housing Development) to incorporate objective standards.
BACKGROUND:
SB 9 Background Information
SB 9 was approved by Governor Gavin Newson on September 16, 2021. It went into effect on January 1, 2022 and has two main impacts to the City's local zoning laws. First, SB 9 adds Government Code section 66411.7 to the Subdivision Map Act to require cities to ministerially approve a parcel map for an "urban lot split" into two (2) lots if the existing lot meets specified requirements, such as the requirement that the lot is within a single-family residential zone. The City may impose standards for that urban lot split but those standards for ministerial approval must be objective standards.
Second, along with the ministerial approval of a proposed urban lot split, new Government Code Section 65852.21 requires the ministerial approval of a housing development containing no more than two residential units on a lot, without discretionary review nor a hearing, if the proposal meets certain objective requirements. For both new sections, there are certain requirements that must be met to utilize those new sections. These include:
• located in a single-family residential zone
• not a historic landmark or located in a historic district • not located in a very high fire hazard severity zone
• not located in a flood zone or on land identified for habitat conservation • proposal would not demolish more than 25 percent of existing exterior structural walls Further, the newly created parcels shall be no smaller than 1,200 square feet and one (1) of the parcels created cannot be smaller than 40% of the lot area of the original parcel. The lot cannot have been previously subdivided pursuant to these urban lot split standards. Neither the owner of the parcel being subdivided nor anyone acting in concert with that owner has previously subdivided an adjacent parcel using the urban lot split standards.
A local agency may impose objective zoning, subdivision, and design standards. "Objective" standards involve no personal or subjective judgement and are uniformly verifiable by reference to an external and uniform benchmark or criteria available and knowable by both the developer and the local agency, so long as those standards do not conflict with SB 9. Objective standards
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may not physically preclude the construction of two residential units on either of the resulting parcels or physically preclude either of the two units from being at least 800 square feet in floor area.
Cities do have some very limited discretion in what to include in an SB 9 Ordinance. Below are some examples of regulations that are included in both the urgency ordinance and the proposed ordinance:
• Demolition. The proposed ordinance prohibits housing developments that would demolish more than 25% of the existing structural walls on a lot where a tenant had resided within the last three (3) years. A city may opt to allow such demolition, per Government Code § 65852.21(a)(5).
• Access. Government Code 66411.7(e) requires cities to include "a requirement that the parcels have access to, provide access to, or adjoin the public right of way." The proposed ordinance adds language to clarify what is sufficient to meet this requirement. • Percolation. The city is allowed to require residential units connected to an onsite wastewater treatment system (septic tank) to have completed a percolation test in the last five (5) years, or if the percolation test has been recertified, within the last 10 years, which shows that the system meets acceptable infiltration rates. • Parking. Cities are sometimes allowed, but not required, to allow up to one (1) off street parking space per unit. The proposed ordinance would require parking be provided at the maximum permissible rate. However, the city cannot require off street parking if the parcel is located within one-half mile walking distance of a high-quality transit corridor or a major transit stop, or there is a car share vehicle located within one (1) block of the parcel. • Additional Unit. Due to the fact that the second unit on an existing lot or newly created lot is very similar in nature to an accessory dwelling unit (ADU), the proposed ordinance requires that the same standards, conditions, and requirements for accessory dwelling units be followed, unless those standards, conditions and requirements conflict with the proposed ordinance or state law, in which case, the proposed ordinance and state law would apply.
On January 18, 2022, Urgency Ordinance No. 0-2022-01 was adopted by City Council amending Title 22 (Subdivisions) to create an urban lot split process and amending Title 23 (Zoning) of the Placentia Municipal Code to create a process for the construction of two residential units per lot pursuant to the implementation of Senate Bill 9. At that time, Staff was directed to return to the Planning Commission to consider the possible recommendation to the City Council of a non - urgency version of an ordinance designed to comply with Senate Bill 9. That draft ordinance can be viewed as Attachment 1 to this report.
DISCUSSION:
April 12 and Mav 10, 2022 Plannina Commission Discussion and Direction At the April 12, 2022 and May 10, 2022 Planning Commission meetings, Planning Commission received a Staff Report and presentation from Staff related to SB 9. Staff and the Planning Commission discussed what can and cannot be included in a legally defensible SB 9 Ordinance.
Staff also worked with the City Attorney to identify development standards that can be included
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or amended in the aforementioned draft Ordinance. Those potential development standards, now incorporated in the proposed ordinance are as follows:
1. Unit Size: Limit the existing dwelling unit that exceeds 800 sq. ft. to its current size — no expansion.
2. Structure Height: Limit the height of a new unit based on distance of setback. For example, if rear and/or side set back is 4 feet, limit the height to 10 feet. The height can increase each additional foot the new structure is set back.
3. Stories: Limiting to only one story for new structures based on distance of setback, requiring a step back of the second floor and prohibiting balconies or decks.
4. Lot coverage: Require regulation to be the same as other single-family zoned properties, with the exception that the percentage of lot coverage does not apply if it prevents two, 800 sq. ft. dwelling units on the lot.
5. Landscaping: Require regulation to be the same as all single-family zoned properties, including all applicable water saving measures.
6. Architectural Style: Require regulation to be compatible with the existing unit or the two units being constructed. Can also require it to comply with ADU standards, so long as they do not conflict with SB 9.
7. Heating and Cooling: Can require that heating/cooling apparatus be placed away from certain locations, i.e. street facing elevations.
8. Grading: Require that all grading comply with Chapter 20.40 (Grading and Excavating) of the Municipal Code.
9. Lot Access: While the City cannot prevent an easement for access to the second unit, Staff can require a sufficient width driveway and fire access and clearance.
10. Utilities: Require utilities (and utility undergrounding) to be the same as with all city standards for construction and placement of utilities.
11. Fire Protection: Require that development pursuant to SB 9 meet the minimum requirements set forth in the Title 18 of the Municipal Code.
Draft Ordinance Refining the City's Local Regulations Related to SB 9 Based upon Planning Commission direction received on May 10, 2022, the attached draft ordinance addresses and/or clarifies all of the provisions above. As previously stated, objective standards may not physically preclude the construction of two residential units on either of the resulting parcels or physically preclude either of the two units from being at least 800 square feet in floor area. Generally speaking, the proposed Code amendments provides a distinction between units above/below 800 square feet, incentivizing the development of units larger than 800 square feet if said development can meet the objective standards of the underlying zone, including setbacks. The Planning Commission reviewed the draft ordinance and recommended approval to the Council.
Fees:
Although the Planning Commission has no prevue over City fees, as an informational item, there are existing fees related to accessory dwelling units and for Tentative Parcel Map applications.
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However, the City's standard Tentative Parcel Map fee includes staff time spent preparing for and conducting a public hearing. Urban lot splits and/or two units per lot cannot include a public hearing pursuant to SB 9. Therefore, as part of the recent Citywide User Fee Study, a unique fee for urban lot splits has been adopted by City Council and a fee specific to reviewing two residential units on one lot has been adopted by City Council. These fees became effective July 1, 2022 based on previous City Council action.
CEQA:
The proposed Zoning Code Amendment was reviewed by Staff in accordance with the requirements of the California Environmental Quality Act ("CEQA"). Based upon that review, Staff and the Planning Commission recommends that the City Council find that adoption of ZCA 2022- 03 is exempt from environmental review in that adoption of the resulting Ordinance is not a project under the requirements of CEQA and that there is no possibility that the activity in question may have a significant effect upon the environment. Pursuant to SB 9, adoption of regulations related to SB 9 is not considered a "project" and therefore, the resulting Ordinance is not subject to CEQA review.
Recommending Body Determination:
On June 14, 2022, the City of Placentia Planning Commission held a public hearing and recommended that the City Council adopt a Categorical Exemption for this project and approve ZCA 2022-02 with minor amendments to the draft ordinance as prepared by Staff.
Prepared by:
Jo•Ilh M. La1nbert
Director of Development Services
Reviewed and approved:
Attachments:
1. Ordinance 0-2022-07
2. Urgency Ordinance No. 0-2022-01
3. Questions & Answers Regarding SB 9
Damen R. Arrula
City Administrator