MEETING DATE:
DECEMBER 14, 2021
SUBJECT:
Title
ORDINANCE NO. 2021-1512 - TEXT AMENDMENT TA21-0002; ZONING ORDINANCE UPDATE - PERMIT STREAMLINING.
Body
Recommendation
Recommendation
ADOPT an ordinance approving updates to the Zoning Ordinance/Title 20 to streamline certain review processes and find the project to be within the scope of the previously certified Program EIR (SCH No.2011071028).
The Planning Commission voted 6-1 to recommend Council approval at its meeting on November 15, 2021.
Body
Board or Commission Action
On November 15, 2021, the Planning Commission voted 6-1 recommending approval and adoption of the proposed Text Amendment to the City Council. The Planning Commission Draft Meeting Minutes are attached (Attachment C).
Relevant Council Strategic Theme
Planning for the Future
Dynamic and Responsive Service Delivery
Good Governance
Economic Development
Relevant Department Goal
N/A
Introduction
City staff in collaboration with its consultants evaluated certain current entitlement processes with a particular focus on the Directors Permits (DP) and Conditional Use Permits (CUP) for projects of certain type and size that do not necessarily benefit from extensive and lengthy review and evaluation. The outcome of this evaluation identified several updates to the Zoning Ordinance for expedited processing, reorganization of criteria and permitted uses.
Discussion
The evaluation of the City’s processing and zoning permit requirements found that a number of land use types, because of their inherent characteristics, have either low potential for impacts or can be limited in size, scope, or setting to eliminate potential impacts to surrounding properties. The evaluation determined that for a number of these types of uses, permit applications can be processed and permitted by a ministerial “Zoning Approval (ZA)” process rather than by the more burdensome discretionary process thereby simplifying and expediting permit approvals. Further it was determined that some uses requiring Conditional Use Permits, could be down-tiered and effectively processed as a Director’s Permit and some DPs could be allowed by right while still maintain proper land use oversight.
New Use Categories and ZA process: The proposed amendment to the Zoning Ordinance includes two new use categories to classify and further define the use types “Places of Assembly” and “Personal Services”. The new Definition and re-classification of “Places of Assembly” has resulted in a new use category of “Small Places of Assembly” which is specifically defined to limit this use to 25 attendees within a maximum of 1,200 square feet of assembly space.
The Definition of use category “Personal Services” is to be amended to clarify the current uses and include a new sub-category of “Limited Instructional” for uses of a maximum of 25 attendees and a limited activity area of 5,000 square feet.
Currently a Use Permit (DP or CUP) is required for all Places of Assembly and Personal Services, regardless of the size. The new sub-categories of “Small Places of Assembly” and “Limited Instructional” are introduced in the Code so businesses that are small in scope can be reviewed by the City through a ministerial permit. Based on past staff experience processing these smaller, less intense uses, it’s been determined that due to their limited size and scope, these uses can be regulated through a ministerial approval, without any adverse impacts to other properties and businesses within Commercial, Mixed-Use and Industrial zones. Any impacts to Public Services in the City due to any new use or change of use will continue to be mitigated through annexations into the City’s Community Facilities Districts (CFDs) as required by the SMMC 17.44.120 and payment of applicable Public Facilities Fees (PFFs).
Since “Small Places of Assembly” and “Limited Instructional” constitute new use types, in order to effectively implement the new ministerial “Zoning Approval” permit, certain qualifying criteria is established to set limits on the scope of the proposed project, thus screening the project application to ensure the proposed use is appropriate in size, use, zone, and location. A Zoning Approval Permit Application is established that is tailored for each use that is permitted with a Zoning Approval. At the time of submittal, applicants will provide requested information about the new or expanded uses, project characteristics, and location; answer criteria questions; and certify that the information provided is true and complete by both the applicant and property owner. The typical types of limiting criteria reflected in the evaluation include building occupancy, maximum number of patrons or persons participating, seating capacity, square footage of use, indoor operations, and hours of operation (See Attachment (B). The ZA Permits administrative decision will be subject to appeals pursuant to Chapter 20.545 of the Zoning Ordinance.
Down-tiering of other Permit types: The proposed amendments to the Zoning Ordinance includes down-tiering of evaluation process from CUPs to DPs for four use categories in Industrial and Commercial Zones and from DPs to Permitted (P) for five use categories in Industrial, Commercial, Residential and Agricultural Zones. The intent of these changes is to further streamline the evaluation and review process for these use categories for the businesses while continue to provide for orderly development of the City. Specific details on why these changes are recommended are detailed in the table below for each use category and within respective zoning districts.
|
Land Use Regulation |
Current Regulation |
Proposed Regulation |
Reasons for Amendment |
|
Chapter 20.205-Land Use and Development Approval |
|
Land Use & Development Approval |
N/A |
New Zoning Approval (ZA) Permit Process |
A new ministerial permit “Zoning Approval” is proposed to be included in the Ordinance to establish a review process that would allow City staff to issue ZA for projects complying with established criteria. Staff review will be limited to specific criteria that include a detailed project description, type of use, location, square footages of suite or space, project size, occupancy of business or activity and parking requirements. |
|
Chapter 20.210 - Agricultural Zones and Chapter 20.215- Residential Zones |
|
Community Gardens |
DP |
Permitted Use |
A Community Garden is agricultural in nature and is defined in the Code to be operated as a co-op by a neighborhood group. This use is consistent with the nature and character of residential and agricultural zones and is recommended to be allowed by right without a DP. This amendment is consistent with the General Plan Policy LU-2.6 which promotes the use of Community Gardens to provide locally grown food. |
|
Small Places of Assembly |
N/A since this is a new use category |
CUP |
Small Places of Assembly is a new use sub-category which is proposed to be included in the Code. Similar to “Places of Assembly” use that currently requires a CUP in Agricultural and Residential zones, the new category of “Small Place of Assembly” is also proposed to require a CUP. |
|
Chapter 20.220- Commercial Zones |
|
Small Places of Assembly |
N/A since this is a new use category and permit process |
ZA |
As stated earlier Small Places of Assembly is a new use category which will not exceed 25 attendees within a maximum of 1,200 square feet of assembly space. This use category is proposed to be processed through the new ZA process in Commercial Zones. |
|
Restaurant, Take Out |
DP |
Permitted Use |
This amendment only affects the Office Professional (OP) Zone in the overall Commercial zones category in the City. Take-out restaurants are currently allowed by right in Commercial and Neighborhood Commercial zones. This amendment will remove the requirement to process a DP if this use is proposed in the OP zone. The allowance of this use by right in a Zone which is similar in nature to other commercial zones will afford additional opportunities to potential new restaurants in the City. |
|
Automotive Services, Washing/Detailing |
CUP |
DP |
The Commercial (C) Zone currently allows “Automotive Services, Repair” through the DP process, staff is therefore recommending that “Automotive Services, Washing/Detailing” is also permitted through processing of a DP as both the use categories are similar in nature and any potential impacts on the property and surrounding neighborhood can be effectively addressed through the DP process. |
|
Personal Services, Limited Instructional |
N/A since this is a new use category and permit process |
ZA |
Limited Instruction allows for a small-scale facility intended to provide individual or small group instruction as identified under “Personal Services” in Chapter 20.400. Specific Criteria shall limit the number of occupants including employees and restrict the activity floor area. Typical land uses may include a small yoga studio or small gym, provided the gross floor area and number of attendees and employees/instructors do not exceed the maximum. |
|
Chapter 20.225 - Mixed Use Zones |
|
Small Places of Assembly |
N/A since this is a new use category and permit process |
ZA |
Since Small Places of Assembly will not exceed 25 attendees within a maximum of 1,200 square feet of assembly space, this new land use category is proposed to be processed through the new ZA process in Mixed Use Zones (MU-1 and MU-2). |
|
Personal Services, Fitness & Health Facility |
DP (when conducted within an existing structure); CUP (when in conjunction with a new structure) |
Note 3 has been corrected to state that a DP is required when a use is proposed within an existing building and a CUP is required if the use is proposed in conjunction with a new structure |
A correction is added in Notes to clarify current regulations. No change is proposed. |
|
Chapter 20.230- Industrial Zones |
|
Small Places of Assembly |
N/A since this is a new use category and permit process |
ZA |
This new use category is proposed to be processed through the new “ZA” process in Industrial Zones (L-I, B-P and I). Staff anticipates no adverse impacts to other uses within these Zones since they will be similar in nature due to limited size of this use category. Industrial Zones (L-I, B-P and I) currently allow “Places of Assembly” through the processing of a DP. |
|
College, Nontraditional Campus Setting |
CUP |
DP |
This amendment only affects Light Industrial (L-I) Zone. The allowance of processing of a DP for this use will continue to ensure staff is evaluating compatibility of the use with surrounding properties, notification of the use to surrounding property owners and evaluation of parking and other requirements as stipulated in the Zoning Ordinance. Down-tiering the processing from a CUP to a DP will afford simpler processing and less time for the applicants and staff to process the application. |
|
Automotive Sales, Wholesale |
DP |
Permitted Use |
This use is currently permitted by right in the Light Industrial (L-I) Zone. The proposed amendment will allow this use by-right in Industrial (I) Zone as well. The overall intent of the two zones is similar in nature therefore staff’s recommendation to down-tier this use from a DP to a Permitted Use in Industrial (I) Zones will allow for additional opportunities for business operators of such uses to find a suitable location is the City. |
|
Merchandise Sales, Showrooms |
DP |
Permitted Use |
This use is currently permitted by right in Light Industrial (L-I) Zone. The proposed amendment will allow this by-right in Industrial (I) Zone as well. The overall intent of the two zones is similar in nature therefore staff’s recommendation to down-tier this use from a DP to a Permitted Use in Industrial (I) Zone will allow for additional opportunities for business operators of such uses to find a suitable location is the City. |
|
Office: Medical, Dental & Holistic |
DP |
Permitted Use |
This amendment only affects Light Industrial (L-I) Zone. Other office uses currently allowed by right in the “L-I” Zone include corporate and government offices. Medical, Dental and Holistic offices are also allowed by right in Business Park (B-P) Zone. The proposed amendment therefore will result in allowance of similar use type in L-I Zone as currently allowed in other similar zones such as B-P and will afford additional opportunities for business operators to find a suitable location in the City. |
|
Automotive Services, Washing/Detailing |
CUP |
DP |
This amendment affects Industrial (I) and Light-Industrial (L-I) Zones. The Zoning Ordinance currently allows “Automotive Services, Repair” through the DP process, staff is therefore recommending that “Automotive Services, Washing/Detailing” is also permitted through processing of a DP as both the use categories are similar in nature and any potential impacts on the property and surrounding neighborhood can be effectively addressed through the DP process. |
|
Personal Services, Limited Instructional |
N/A since this is a new use category and permit process |
ZA |
Limited Instruction allows for a small-scale facility intended to provide individual or small group instruction as identified under “Personal Services” in Chapter 20.400. Specific Criteria shall limit the number of occupants including employees and restricts the activity floor area. Typical land uses may include a yoga place or a small fitness facility provided the gross floor area and number of attendees and employees/instructors do not exceed the maximum. |
|
Building Material Storage & Sales |
CUP |
DP |
This amendment affects Industrial (I) Zone only. Staff’s recommendation to down-tier the review process from a CUP to a DP for this use is based on similar operational characteristics of “Equipment Rental Yards” which is reviewed under a DP process. |
|
Chapter 20.400-Specific Use Standards |
|
Personal Services |
N/A |
New Section added to list Personal Services |
This use category is now included in the Zoning Ordinance to define three permit types that are required based on specifics e.g. a CUP is required when this use is proposed in conjunction with a new building; a DP is required when proposed in an existing building and a ZA is required when a limited scope is proposed as outlined above in the report and specified in Section 20.400.155. |
|
Places of Assembly |
N/A |
Places of Assembly updated to include ZA requirements |
This use category is updated to define three permit requirements of CUP, DP or ZA for Places of Assembly based on size and other criteria as specifically listed in Section 20.400.160. |
|
Chapter 20.600 - Definitions |
|
Land Use Definitions |
N/A |
Definitions are included for two new use categories |
Additions, revisions, and clarifications are made to this Chapter; Section 20.600.180 to define two use categories of “Personal Services” including “Limited Instructional” and “Small Places of Assembly” |
|
Chapter 20.340-Parking Requirements/ Table 20.340-1 |
|
Parking Requirements |
N/A |
Parking ratios identified for two new use categories |
The Parking regulations are proposed to be updated through the inclusion of Parking requirements for “Small Places of Assembly” at 1 space/150 s.f. of assembly area plus 1 space/employee and amends the “Personal Services, Instructional” to add “limited instructional” to require 1 space/250 s.f. plus 1 space/employee of gross floor area. Both modifications are consistent with the parking intent and types of uses. |
Disclosure of annexation requirement in Community Facilities Districts (CFDs) and Public Facilities Fees (PFF): A disclosure statement is added into all the chapters that all uses are required to annex into applicable CFDs and pay any applicable PFFs.
In Summary the proposed amendments would streamline permit requirements for minor projects with similar and consistent operational characteristics, reduce potential for adverse impacts to surrounding properties and to Public Services and allow City staff to evaluate project specifics, understand the site characteristics, thresholds, and ultimately ensure appropriately regulated land uses. The outcome of these amendments will assist in promoting predictability and reducing risks and uncertainty for businesses seeking new locations or expansions of uses while protecting surrounding properties from potential impacts.
The City adopted a comprehensive update to the General Plan and associated Program Environmental Impact Report (EIR) in 2012. Subsequent to that action, the Zoning Ordinance was updated as well to implement the General Plan. The City identified the Zoning Ordinance adoption as a subsequent project to the General Plan Update’s Program EIR. Similar to the Zoning Ordinance adoption in 2012, the proposed project involves further amendments to the Zoning Ordinance.
An Initial Study has been prepared to satisfy the California Environmental Quality Act (CEQA) (California Public Resources Code, Section 21000 et seq.), and the CEQA Guidelines (14 CCR 15000 et seq.). CEQA requires that all state and local government agencies consider the environmental consequences of projects over which they have discretionary authority before acting on those projects. CEQA Section 15152 encourages lead agencies to tier environmental analysis to avoid repetitive discussion within subsequent environmental documents and focus on issues directly related to the topic of evaluation. The Zoning Ordinance Update is considered a tiered project under the City’s General Plan Program EIR. The purpose of the preparation of the Initial Study (IS) is to review environmental impacts associated with updates to the Zoning Ordinance and ensure that impacts are no more significant than those evaluated in the General Plan EIR. No significant impacts beyond those evaluated in the General Plan EIR were identified. Mitigation measures outlined in the General Plan EIR (found in Table ES-3 of the General Plan EIR) have been presented in Attachment A of the Initial Study.
Public Engagement Process and Comments
On June 29, 2021 the City held a virtual public workshop to garner community input on recommended Code update. All amended Code sections were posted on the web site for any interested parties to review the proposed update specifics. The workshop was advertised through the City’s social media outlets, a press release, and publication of the legal advertisement. The City also partnered with the Chamber of Commerce and included the workshop information in their newsletter. There were no comments or questions raised at the workshop from the attendees. There were no public comments received at the Planning Commission hearing on November 15, 2021.
Fiscal Impact
It is estimated that with the implementation of the proposed amendments, roughly one-third of the DPs will no longer be required and will be reviewed under the new ZA evaluation process or allowed by right. With the implementation of the proposed project, it can be estimated that on average, the City could save $2,066 per year in staffing costs. The savings are calculated by subtracting staffing cost savings from the loss in collected fees in a year. These savings will vary from year to year depending on the number of applications processed.
Although not quantified, there are additional fiscal benefits that will result from the overall economic growth in the City as businesses will spend less time and money in processing City permits.
Attachment(s)
Adopting Ordinance:
1. Ordinance No. 2021-1512 (Ordinance to approve updates to the Zoning Ordinance to streamline certain review processes)
A. Initial Study
B. Zoning Approval Permit Application
C. Planning Commission Draft Minutes
Prepared by: Saima Qureshy, AICP, Principal Planner
Reviewed by: Joseph Farace, Planning Division Director
Submitted by: Isaac Etchamendy, Director of Development Services
Approved by: Jack Griffin, City Manager