Administrative
Report
H.8., File # 20-1078 Meeting Date: 7/7/2020
To: MAYOR AND CITY COUNCIL
From: BRANDY FORBES, COMMUNITY DEVELOPMENT DIRECTOR
TITLE
ADOPT BY TITLE ONLY RESOLUTION NO. CC-2007-050, A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, AUTHORIZING APPLICATION
FOR, AND RECEIPT OF, LOCAL GOVERNMENT PLANNING SUPPORT GRANT PROGRAM
FUNDS LOCAL EARLY ACTION PLANNING GRANTS PROGRAM (LEAP)
EXECUTIVE SUMMARY
The Local Early Action Planning Grants Program (LEAP) available through the Local Government Planning Support Grants Program and managed by the California Department of Housing and Community Development (HCD), provides one-time grant funding to regions and jurisdictions for technical assistance, preparation and adoption of planning documents, and process improvements.
The over-arching goals of the LEAP Program are to accelerate housing production and facilitate compliance to implement the sixth cycle of the regional housing need assessment (RHNA). Eligible activities include updating planning documents such as general plans/ elements, completing environmental clearance to address project-specific review, performing infrastructure planning to support new housing, and developing or improving an accessory dwelling unit ordinance.
This is a non-competitive, reimbursement grant program. As long as a local government meets the threshold requirements, any locality is eligible for funding. Applicants must meet set eligibility requirements. The LEAP Program utilizes an over-the-counter process with applications due July 1, 2020. Due to the complexities and demands of COVID-19 emergency orders, HCD staff have allowed the resolution to be adopted after the application deadline, as necessary. Thus, the grant application was submitted in order to meet the July 1, 2020 deadline, with the contingency that the City Council adopt the corresponding resolution.
Staff reviewed the application restrictions of the LEAP Program and is proposing projects that are grant eligible that also match the City of Redondo Beach’s strategic planning items and projects.
Under the “City of Redondo Beach LEAP Grant Projects” section below is a description of the strategic planning items and projects proposed for this grant.
The four eligible projects addressed in the grant application include the additional work on the General Plan Update to address SB330 and the RHNA sixth cycle impacts, the planning work for the sewer line that will address capacity issues (including the vicinity of Legado project), the preparation of the ADU ordinances to comply with the newly adopted State regulations, and the environmental review of the General Plan Update as it relates to the land use component. Additionally, up to
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$15,000 of the grant funds may be used for administration of the grant.
BACKGROUND
ABOUT THE LEAP PROGRAM
The LEAP Program provides one-time grant funding to eligible local governments in California to adopt and implement plans and process improvements that accelerate housing production. Eligible activities include updating planning documents such as general plans/ elements, completing environmental clearance to address project-specific review, performing infrastructure planning to support new housing, and developing or improving an accessory dwelling unit ordinance. The LEAP Program is made available as a portion of the Local Government Planning Support Grants Program pursuant to Chapter 3.1 of Health and Safety Code (Sections 50515.03 (Chapter 159, Statutes of 2019). The Program provides funding to jurisdictions for the preparation and adoption of planning documents, process improvements that accelerate housing production, and facilitate compliance in implementing the sixth cycle of the RHNA. HCD released a Notice of Funding Availability (NOFA) on January 27, 2020. There were several workshops planned to explain the funding, which were truncated due to COVID-19. The NOFA is available for review at the following link:
<https://www.hcd.ca.gov/grants-funding/active-funding/leap/docs/LEAP_Final_Clean.pdf>.
Each jurisdiction is eligible to apply for one grant up to the maximum grant amount ($300,000 for the City of Redondo Beach). An applicant can apply for multiple projects in the same grant application as long as they do not exceed the maximum grant amount allocated to their jurisdiction.
The LEAP Program allows for a range of activities that can be implemented and will accelerate housing production and facilitate compliance in implementing the sixth cycle of RHNA. Staff reviewed the application restrictions and determined current projects the City is pursuing that qualify as eligible activities. The four categories of projects for which the City is requesting funding include:
1. Encouraging development by updating planning documents…such as General Plans.
The City Council recently approved an amendment to the contract with Placeworks and an accompanying contract with Veronica Tam to ensure that the General Plan Land Use recommendations address SB 330 impacts and the sixth cycle for RHNA. This work is eligible for reimbursement through this grant.
2. Performing infrastructure planning, including for sewers…necessary to support new housing and new residents. The City has recently approved the plans and specifications for the sewer improvement project in the vicinity of the Legado mixed-use project. Completion of this sewer improvement is necessary for occupancy of that project. This planning work is eligible for reimbursement through this grant.
3. Developing or improving an accessory dwelling unit ordinance in compliance with Section 65852.2 of the Government Code. In 2019 the City of Redondo Beach adopted ADU ordinances (inland and coastal) to comply with the State Government Code Section 65852.2.
However, in 2019 the State Senate and Assembly adopted several bills pertaining to housing, and specifically to amending the legislation related to ADUs. The amended Government Code Section 65852.2 became effective on January 1, 2020, leaving any conflicting local provision null and void (including Redondo Beach’s ordinances). Therefore, the City has to amend the ADU ordinances to comply with the revised Government Code Section 65852.2. This work is eligible for reimbursement through this grant.
4. Completing environmental clearance to eliminate the need for project-specific review.
H.8., File # 20-1078 Meeting Date: 7/7/2020
Part of the City of Redondo Beach’s General Plan Update work is the preparation of a Program Environmental Impact Report (EIR). This type of EIR allows the City of Redondo Beach to consider broad policy alternatives and program wide mitigation measures early in the General Plan update process. A Program EIR is a tiered environmental document that can be used to simplify the task of preparing environmental documents on later activities in the program, being incorporated by reference. This work is eligible for reimbursement through this grant.
GRANT PREPARATION PROCESS
Staff reviewed the application restrictions of the LEAP Program and is proposing projects that are grant eligible that also match the City of Redondo Beach’s strategic planning items and projects.
Under the “City of Redondo Beach LEAP Grant Projects” section below is a description of the strategic planning items and projects proposed for this grant.
The application materials and proposed projects follow the City’s Administrative Policy/Procedures regarding Grant Management. Specifically, the grant program is consistent with identified City goals and objectives, the grant application includes costs of additional staffing (consultants), and costs for the equipment that will be required if the grant is awarded. The grant program is consistent with the following strategic objectives and projects:
1. Strategic Objective - ADU Ordinances. The grant will cover costs of updating ADU ordinances.
2. Strategic Objective - Regional Housing Needs Allocation. The grant will cover costs associated with ensuring that the GPAC Land Use recommendations address the RHNA sixth cycle.
3. Strategic Objective - General Plan Update. The grant will cover costs associated with ensuring that the GPAC Land Use recommendations are in compliance with new State housing regulations (SB330).
4. Capital Improvements Program - Sanitary Sewer Facilities Rehabilitation. The grant program addresses the project planning that has been approved by the City Council to improve the sewer in the Legado project area. Although Legado has made their necessary fair share contribution to the project, the costs exceed that contribution amount. The grant program can pay for the preparation of the plans and specifications for this project, as the sewer improvements are required before occupancy of the Legado project may occur.
The LEAP Program requires that funded activities have a strong implementation component and, where applicable, that planning documents be adopted by the locality. The proposed projects are implementable within the timeframe constraints of the grant.
HCD strongly recommends that municipalities follow the sample resolution provided in the application because it has been approved by HCD and includes all of the information needed to process the application. The resolution included in the City Council agenda packet for adoption was based on the template of the LEAP Program.
Although the grant application deadline was July 1, 2020, the City’s technical advisory contact with HCD has authorized that the City could submit the application by the deadline and then provide the resolution once adopted by the City Council in early July 2020. Per that direction, the application has been submitted to HCD and is now awaiting the adoption of the accompanying resolution.
CITY OF REDONDO BEACH LEAP GRANT PROJECTS
The City’s grant application has four components or projects. Each of these address current City
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Council strategic planning items and projects. Receiving grant funding for these projects, many of which are due to State mandates and legislation, will allow these planning items to be funded and the City’s resources be reimbursed.
1. Updating planning documents and zoning ordinances, such as General Plan update, related to housing. The total amount budgeted for item #1 is $47,080.
The City of Redondo Beach General Plan Advisory Committee (GPAC) has been meeting since 2017 to update the Land Use Element of the City's General Plan. Proposed changes to the land use element may affect the Housing Element sites inventory. In 2019 the GPAC proposed land use changes as part of the General Plan Update. However, since exploring those land use options, Senate Bill 330 was adopted and the Regional Housing Needs Allocation (RHNA) methodology for the 6th Cycle has been proposed. As a result, the City’s affordable housing consultant will provide technical assistance to analyze the impact of these changes. The consultant will evaluate the proposed changes against the City's fifth cycle Housing Element sites inventory to determine if these proposed changes would result in a net loss of housing unit capacity, will prepare a summary memo outlining the State laws governing adequate sites and No Net Loss requirements of SB 330, and will recommend how the GPAC proposal may potentially impact the City's current Housing Element certification and the upcoming Housing Element cycle. The budgeted amount for this affordable housing analysis related to the General Plan Update is $ 10,000.
To incorporate the review of the affordable housing consultant related to SB 330 and RHNA, the City’s General Plan Update consultant has been approved for additional work related to these issues. The additional necessary work is to revisit the GPAC’s Draft Land Use Element recommendations to address the recent changes in State Housing Law and the pending RHNA methodology, with the guidance of the City’s affordable housing consultant. The additional scope includes the following:
--Two (2) meetings to revisit GPAC recommended Draft Land Use Plan in light of recent changes in State Housing Law and RHNA methodology for a budgeted amount of $18,600. --Update Land Use Element: Additional refinements required to confirm element is compliant with recent changes in State laws concerning housing, climate change, and traffic/transportation, for a budgeted amount of $4,000. --Update and refine land use diagram: Requires updating in light of recent changes in State Housing Law and RHNA methodology, for a budgeted amount of $5,000. --Additional Project Team Meetings (3 months) for a budgeted amount of $7,920.
Finally, the City’s outside legal counsel is evaluating the new legislation created by SB330.
The budgeted amount for this review is $1,560.
2. Performing infrastructure planning, including for sewers, water systems, transit, roads, or other public facilities necessary to support new housing and new residents. The total amount budgeted for item #2 is $179,599.
The City prepared the scope of work to design and prepare plans/specifications for a new sewer pipe segment in a residential/mixed use area in the vicinity of Pacific Coast Highway at the intersection of Palos Verdes Boulevard to divert sewer flows away from an impacted portion of the conveyance system and into a different portion of the system for improved
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capacity for residential development. This infrastructure planning work includes the preparation of required environmental documents, performing a topographical survey, preparing exhibits and plans with utilities identified, obtaining outside agency permits, preparing a traffic control plan, and preparing a complete set of plans and specifications. This sewer infrastructure project will ensure adequate capacity for a 115 unit residential/mixed use project that requires these infrastructure improvements to be built before the development can be occupied. Additionally, the improvements provide upgraded capacity to over 200 existing residential properties which could now support ADUs.
The budgeted amount for this infrastructure planning effort, necessary to support new housing and new residents, is $179,599.
3. Development/improving ADU ordinance in compliance with Section 65852.2 of the Government Code. The total amount budgeted for item #3 is $40,000.
In 2019 the City of Redondo Beach adopted accessory dwelling unit (ADU) ordinances (inland and coastal) to comply with the State Government Code Section 65852.2. However, in 2019 the State Senate and Assembly adopted several bills pertaining to housing, and specifically to ADUs. The Governor signed those bills into law in October 2019. The amended Government Code Section 65852.2 became effective on January 1, 2020, leaving any conflicting local provision null and void. Therefore, the City of Redondo Beach has to amend the ADU ordinances to comply with the revised Government Code Section 65852.2. Due to the legal nature of these regulations and the need to ensure that the ordinances comply with the revised code, the City is coordinating with an outside consultant to prepare new ADU ordinances (inland and coastal) that are in compliance with Section 65852.2 of the Government Code.
The budgeted amount for the development of ADU ordinances in compliance with Section 65852.2 of the Government Code is $40,000.
4. Completing environmental clearance (General Plan Environmental Impact Report) to eliminate need for project-specific review. The total amount budgeted for item #4 is $18,321 Part of the City of Redondo Beach’s General Plan Update work is the preparation of the Environmental Impact Report (EIR). The scope of work is the preparation of a Program EIR that has broad applicability as a CEQA review tool in the City of Redondo Beach. Per Section 15168 of the CEQA Guidelines, a Program EIR is a broad assessment of a series of related actions as if they were a single project. This type of EIR allows the City of Redondo Beach to consider broad policy alternatives and program wide mitigation measures early in the General Plan update process. A Program EIR is a tiered environmental document that can be used to simplify the task of preparing environmental documents on later activities in the program, being incorporated by reference.
Per the scope of work for the General Plan Update, the Environmental Analysis Consultant shall prepare a Program EIR that documents existing conditions, potential project impacts, and mitigation measures, as well as the resulting level of significance for potential impacts under relevant CEQA categories. As permitted by CEQA, the EIR will focus on CEQA resource categories where substantial evidence of a potentially significant environmental impact exists,
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as determined by the Initial Study. Similarly, environmental issues on which it was shown that the project would have no significant impact on the basis of existing documentation and regulation will not be analyzed.
The contracted amount for the full environmental review (including initial study, scoping, preparation of Program EIR, noticing requirements, etc.) is $98,792 and the portion for just the preparation of the Program EIR is $41,866. The budgeted amount for this grant is partial funding of $18,321 (what remains after accounting for the other components of the grant application).
Additionally, the City expects to use no more than 5% of the grant funds ($15,000) for administrative costs directly related to the preparation and adoption of the proposed activity.
COORDINATION
The preparation of the Administrative Report and grant application have been coordinated with the Public Works Department, Finance Department, and the City Attorney’s Office.
FISCAL IMPACT
The cost of preparing this report is included within the Community Development Department’s portion of the adopted 2019-2020 Annual Budget and is part of the department’s annual work program.
If the grant is awarded, it will offset the cost of already scheduled general planning projects, infrastructure projects, and ADU preparation.
APPROVED BY:
Joe Hoefgen, City Manager
ATTACHMENTS
Draft City Council Resolution Authorizing Application for and Receipt of LEAP Program Funds LEAP Program Cover Letter, Application, and Tax ID Form