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CC 2013-10-22_09.a. GPA - Draft Housing Element UpdateTO: FROM: MEMORANDUM CITY COUNCIL ~ \ TERESA McCLISH, COMMUNITY DEVELOPMENT DIRECTOR BY: ri~· KELLY HEFFERNON, ASSOCIATE PLANNER SUBJECT: DATE: CONSIDERATION OF THE DRAFT HOUSING ELEMENT UPDATE FOR THE 2007-2015 REGIONAL HOUSING NEEDS ASSESSMENT (RHNA) CYCLE; GENERAL PLAN AMENDMENT NO. 11-002; CiTYWIDE OCTOBER 22, 2013 RECOMMENDATION: The Planning Commission recommends the City Council adopt a Resolution approving General Plan Amendment No. 11-002, thereby adopting a Negative Declaration and approving the Housing Element Update for the 2007-2015 Regional Housing Needs Assessment (RHNA) Cycle. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: No financial impact is identified at this time. There will be additional staff time necessary to implement the policies and programs of the Housing Element. BACKGROUND: State law requires each city and county to adopt a General Plan containing at least . seven (7) elements, including housing, which is to be updated approximately every five (5) years. The Housing Element is subject to detailed statutory requirements and mandatory review and certification by the State Department of Housing and Community Development (HCD). The Housing Element is a comprehensive assessment of current and projected housing needs for all economic segments of Arroyo Grande. Under State law, the purpose of the Housing Element is to assess existing and projected housing needs, identify obstacles to meeting those needs, and demonstrate capacity for each city to accommodate its "fair share" of the projected need for new housing units in the region. It must contain a land inventory and identify adequate sites to provide for the needs of households at all income levels. HCD allocates a region's share of the statewide housing need to Councils of Governments (COG) based on State Department of Finance population projections and regional population forecasts. The San Luis Obispo Council of Governments Item 9.a. - Page 1 CITY COUNCIL HOUSING ELEMENT UPDATE; GPA 11-002 OCTOBER 22, 2013 PAGE2 · (SLOCOG) adopted the Regional Housing Needs Plan (RHNP) for the incorporated cities and unincorporated areas of San Luis Obispo County in August 2008. Each jurisdiction is required to integrate the housing unit distribution numbers identified in the RHNP in their Housing Element update in order to accommodate their "fair share" of the anticipated future housing demand. For SLOCOG's 2007 -2015 Housing Element Cycle, the Regional Housing Needs Allocation (RHNA) data has been established for the ,City of Arroyo Grande as follows: Income Category Number of Units Very Low Income (0-50% of AMI)* 84 Low Income (51-80% of AMI) 59 Moderate Income (81-120% of AMI) 67 Above Moderate Income (over 120% of AMI) 152 Total 362 *AMI =Area Median Income The distribution of 362 total housing units for the City is considerably less than the previous program period, which allocated 1,609 total housing units to the City. The City's previous Housing Element was adopted on November 25, 2003, which the City amended on March 8, 2005 to include recommendations from HCD. HCD certified the City's amended Housing Element on June 22, 2005. This was the City's first Housing Element certified by HCD. On November 28, 2007, the City updated the Housing Element to be in compliance with Government Code Section 65915 regarding density bonuses and development concessions for qualified affordable housing projects .. The City contracted with Lisa Wise Consulting to assist with the Housing Element Updc:1te. Staff and the consultant worked together to evaluate the existing Housing Element and the local housing supply, inventory vacant land and underutilized sites, and assessed constraints to the development of housing as required by State law. The Planning Commission considered the draft Housing Element on November 15, 2011 (see Attachment 1 for meeting minutes). The Commission recommended greater definition of attainable housing, expressed concern about relaxing parking requirements for apartments, and sought information about solar orientation issues. The City Council considered the draft document on December 13, 2011 (see Attachment 2 for meeting minutes). After discussing housing category allocations to make sure they conform to the City's demographics, the Council moved to authorize submittal of the draft document to HCD. The City has worked diligently with HCD staff over the past year and a half to address various issues identified by HCD in the draft Housing Element. On June 24, 2013, the City received.a letter from HCD stating that the draft element meets all of the statutory requirements (Attachment 3). The draft element is included as Attachment 4 .. Once the Item 9.a. - Page 2 CITY COUNCIL HOUSING ELEMENT UPDATE; GPA 11-002 OCTOBER 22, 2013 PAGE3 City Council adopts the Housing Element, the City will send the document to HCD for certification (90-day review). Beyond compliance with State law, a certified housing element makes the City eligible for State and Federal funding for various housing programs. The Planning Commission reviewed the revised draft Housing Element on September 17, 2013. After some discussion, the Planning Commission adopted a Resolution recommending approval to the City Council. One of the main issues the Planning Commission discussed was Program G.1-3, which allows development of five or more multiple-family attached units in the MF and MFA zoning districts with a Minor Use Permit in an effort to streamline the process per HCD's direction. Currently a Conditional Use Permit is required. The Commission agreed with staff that the City might want to include design guidelines as part of the Development Code amendment for this program. ANALYSIS OF ISSUES: HCD received the City's draft Housing Element on January 24, 2012 and subsequently provided a letter outlining deficiencies in meeting statutory requirements, which are listed below. All of these issues have been addressed in the attached draft Housing Element. This information is provided to show what type of additional information has been included in the document since the Council's last review. Supporting sections of the Government Code are first shown in italics, followed by a detailed explanation for the requested changes. Staff's response regarding how the element was amended is included after each HCD comment. A. Housing Needs, Resources, and Constraints 1. Include an inventory of land suitable for residential development, including vacant sites and sites having the potential for redevelopment, and an analysis of the relationship of zoning and public facilities and services to these sites (Section 65583(a)(3)). The inventory of land suitable for residential development shall be used to identify sites that can be developed for housing within the planning period (Section 65583. 2). Arroyo Grande has a RHNA of 362 housing units, of which 143 are for lower-income households. To address this need, the element relies on constructed and approved units, second-units, and vacant and non-vacant sites, including sites in mixed-use zones. To demonstrate the adequacy of these sites and strategies to accommodate the City's RHNA, the element must include complete analyses as follows: Progress in Meeting the RHNA: The element indicates that 18 units affordable to very low-income households and 39 units affordable to low-income households have been built or are under construction or approved between 2007 and 2011. Of these 57 units, the element identifies 41 units that will be deed-restricted, but provides no information documenting how affordability of the other 16 units (all second-units) Item 9.a. - Page 3 CITY COUNCIL HOUSING ELEMENT UPDATE; GPA 11-002 OCTOBER 22, 2013 PAGE4 was determined. As you know, the City's RHNA may be reduced by the number of new units built since January 1, 2007; however, the element must describe the City's methodology for assigning these units to the various income groups based on actual sales price or rent level of the units or other mechanisms establishing affordability (e.g., financing). Staffs Response: An expanded analysis was performed on the vacant site and opportunity site inventories that resulted in greater accommodation for low-income units. Reliance on second units to meet the RHNA is no longer necessary with the expanded inventories. Sites Inventory: Many sites listed in Tables 4-7 and 4-8 are comprised of multiple parcels. While the element may aggregate parcels, it must also list each parcel in the aggregated inventory by size, zoning, General Plan designation and existing use and should evaluate the potential for consolidation. Staffs Response: The information provided in Tables 4-7 and 4-8 was originally aggregated for particular areas, especially along East Grand Avenue. These properties were expanded to include parcel level detail. Realistic Capacity: The element must include an estimate of the number of units that can be accommodated on each site in the inventory. The estimate may rely on any · established minimum density standards. Otherwise, the element must describe the methodology used to estimate the realistic residential capacity including adjustments for land use controls and site improvement requirements. The element appears to assume all sites in mixed-use districts will be developed as residential. For these sites, the residential capacity analysis should specifically account for the extent to which uses other than residential are allowed. Projected residential development capacity should not, for example, assume residential-only development on sites with zoning allowing 100 percent non-residential uses and could consider recently constructed and approved developments. Staffs Response: The inventory was revised to provide a more accurate estimate of the number of units that can be accommodated on each site. Assumptions were made regarding proportions of residential and commercial deyelopment on a given site, and language was added to explain these assumptions. Small Sites: The element includes two lists of sites which could be aggregated to create larger parcels to facilitate the development of housing affordable to lower income households. The element should discuss whether aggregated parcels could develop individually or are anticipated to be consolidated with other parcels. For parcels anticipated to be consolidated, the element includes information on the number of owners; however, it should describe the potential for lot consolidation on sites comprised of multiple parcels, including conditions rendering parcels suitable Item 9.a. - Page 4 CITY COUNCIL. HOUSING ELEMENT UPDATE; GPA 11-002 OCTOBER 22, 2013 PAGES and ready for redevelopment, trends, and whether the owners have indicated any interest in consolidation. The analysis could also indicate where sites have already been assembled. The element should also include policies and programs as appropriate to facilitate lot consolidation. For parcels anticipated 'to develop individually, the element should calculate residential capacity separately and evaluate existing and/or proposed policies or incentives the City will offer to facilitate development if sites are small (e.g., less than 0.5 acres). This is particularly important given the necessary economies of scale to ·facilitate development of housing developments utilizing State or federal financial resources typically include at least 50-80 units. Staff's Response: Additional information on the development potential for individual properties was provided in the land inventories including existing uses, surrounding uses and other site-specific details. Zoning for Lower-Income Households: Pursuant to Section 65583.2(c)(3), the element must either provide (A) an analysis demonstrating how adopted densities can accommodate housing needs for lower-income households or (B) meet specified density standards where no analysis is required for densities allowing at least 20 units per acre. While the element appears to indicate housing affordable to lower-income households can be accommodated on sites zoned in various mixed-use districts with densities allowing at least 25 units per acre (for only mixed use development), it does not yet demonstrate sufficient sites with these densities to accommodate the need for lower-income households. In addition, the zones limit density (15 units per acre) if developed as residential only rather than mixed-use. If sufficient sites are not available with densities allowing at least 20 units per acre, the element must include an analysis to demonstrate the adequacy of the zones to encourage and facilitate the development of units affordable to lower-income households. The analysis should be based on factors such as market demand, development experience within zones, and specifically address the impacts of density on financial feasibility. Staff's Response: As stated . above, the inventory was revised to provide a more accurate estimate of the number of units that can be accommodated on each site. Assumptions were made regarding proportions of residential and commercial development on a given site, and language was added to explain these assumptions. The conclusion is that the flexible density for mixed-use zoning is able to exceed 20 units per acre, and some areas allow a larger percentage of sites to be developed as residential. Examples of recently approved high-density projects are included to illustrate this capacity. Section 4.3 was expanded to address this issue (paragraph above the Vacant Land sub-section). Suitabilitv of Non-Vacant Sites: While the element provides general descriptions of existing uses on non-vacant and underutilized sites (Table 4-8), it must also demonstrate the potential for redevelopment and evaluate the extent to which existing uses may impede additional residential, development. For example, some sites Item 9.a. - Page 5 CITY COUNCIL HOUSING ELEMENT UPDATE; GPA 11-002 OCTOBER 22, 2013 PAGE& indicate current residential uses and others indicate retail or commercial uses, but provide no information about the potential for the uses to be discontinued. The evaluation should consider development trends, market conditions, and regulatory or other incentives or standards to encourage additional residential development on these sites. For sites with residential uses, the inventory could generally describe structural conditions or other circumstances and trends demonstrating the redevelopment potential to more intense residential uses. For non-residential sites, the inventory could generally describe whether the use is operating, marginal or discontinued, and the condition of the structure could describe any expressed interest in redevelopment. Staff's Response: Additional information was added to the non-vacant land inventory to describe the existing situation of individual lots and its development potential. This was provided only for properties that lacked sufficient detail. Second-Units: While the element may utilize the capacity for 20 second-units in the planning period, it should include an evaluation of their affordability such~as a rent survey. This is particularly important since market rents for some studio and one- bedroom units do not appear affordable to low-income households as assumed in the element. Staff's Response: This information was provided in Section 4.2 below Table 4-4. Sites with Zoning for a Variety of Housing Types (Emergency Shelters): While the element briefly describes capacity of zones identified as appropriate for the development of emergency shelters (IMU, OMU and HMU), it should describe the suitability of the capacity for the development of emergency shelters such as typical parcel sizes. The element could describe vacant acreage to demonstrate potential to accommodate the City's need for emergency shelters or for non-vacant parcels, the element could describe redevelopment potential and capacity for conversion to emergency shelters. Staff's Response: Program K.2-1 was amended to further address the City's capacity to accommodate emergency shelters. 2. Analyze potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures. The analysis shall also demonstrate local efforts to remove governmental constraints that hinder the locality from meeting its share of the regional housing need in accordance with Section 65584 and from meeting the need for housing for persons with disabilities, supportive housing, transitional housing, and emergency shelters identified pursuant to paragraph (7) (Section 65583(a)(5)). Item 9.a. - Page 6 J CITY COUNCIL HOUSING ELEMENT UPDATE; GPA 11-002 OCTOBER 22, 2013 PAGE7 Local Processing and Permit Procedures: While the element identifies how various . residential uses are permitted by zone, and processing times for some planning entitlements, it must include a complete description and analysis of the total typical review process for both single and multi-family units for potential impacts on the cost and supply of housing. For example, the element indicates multifamily development over 4 units must be approved through a conditional use permit (CUP) or a minor use permit (MUP). Additional review and complex discretionary findings can add significant time and uncertainty to the approval process and consequently can impact the cost and supply of housing, particularly housing affordable to low and moderate- income households. As a result, these processes must be analyzed as a constraint such as analyzing typical findings of approval and potential impacts on approval certainty, timing and cost. The City may need to include a program to address permitting requirements. Design and Architectural Reviews: The City utilizes design and architectural reviews for multifamily uses, but eh element does not provide any explanation of the requirements. The element should include an analysis of the design and architectural review guidelines and processes, including identification of requirements and approval procedures and analyzing the impact of the guidelines and process on housing costs and approval certainty. Staff's Response: Information regarding the typical review process for different types of residential development entitlements was provided in Section 5.1 under sub-section Land Use and Development Controls. 3. Analyze any special housing needs, such as those of the elderly; persons with disabilities, including a developmental disability as defined in Section 4512 of the Welfare and Institutions Code; ·large families; farmworkers; families with female heads of households; and families and persons in need of emergency shelter (Section 65583(a)(7)). Chapter 507, Statutes of 2010 (SB 812), requires the analysis of persons with disabilities to include developmental disabilities. The term "developmental disability" refers to a severe and chronic disability attributable to a mental or physical impairment, such as Cerebral Palsy, Epilepsy, or Autism that begins before individuals reach adulthood (Welfare and Institutions Code, Section 4512). The analysis could include the following: • A quantification of the total number of persons with developmental disabilities; • A description of the types of developmental disabilities; • A description of the housing need, including a description of potential housing problems, and an assessment of unmet housing needs for persons with developmental disabilities; and Item 9.a. - Page 7 CITY COUNCIL HOUSING ELEMENT UPDATE; GPA 11-002 OCTOBER 22, 2013 PAGES • A discussion of resources, policies and programs including existing housing and services, for persons with developmental disabilities. · Staff's Response: A sub-section entitled Developmentally Disabled was added to Section 3.5, and Program L.1-1 was added to explore models encouraging the creation of housing for persons with disabilities. 4. Analyze existing assisted housing developments that are eligible to change to non- low-income housing uses during the next 10 years due to termination of subsidy contracts, mortgage prepayment, or expiration of use restrictions (Sections 65583(a)(8) through 65583(a)(9)(D)). Based upon information from the California Housing Partnership Corporation, Parkview Manor may be at-risk, and if so, the element should include relevant information about Parkview Manor and its potential to be at-risk, including: • · Listing the development by project name and address; • Type of assistance received; • Earliest date of change from low-income use; and • Total number of elderly and non-elderly units. In addition, the element must: • Estimate total cost for producing, replacing and preserving the units at-risk; • Identify public and private non-profit entities known to the City to have the legal and managerial capacity to acquire and manage at-risk units. According to information provided to the Department, entities which· may be interested within San Luis Obispo County are indicated on a roster which is available in Building Blocks ' technical assistance tool available at http://www.hcd.ca. gov /hpd/hrc/tech/presrv /hpd00-0 I .xis. The element should reference this or other appropriate resource for this information. • Identify and consider use of federal, State and local financing and subsidy programs. Additional information and sample analyses are available in the Building Blocks' section on Identification and Analysis of Developments At-risk at http://www.hcd.ca.gov/hpd/housing element 2/EHN atrisk.php. You may wish to contact the California Housing Partnership Corporation for assistance at http://www.chpc.net. Staff's Response: Section 3.6 was expanded to further analyze at risk housing units within the City. Item 9.a. - Page 8 CITY COUNCIL HOUSING ELEMENT UPDATE; GPA 11-002 OCTOBER 22, 2013 PAGE9 B. Housing Programs 1. Identify adequate sites which will be made available through appropriate zoning and development standards and with public services and facilities needed to facilitate and encourage the development of a variety of types of housing for all income levels, including rental housing, factory-built housing, mobile homes, and emergency shelters and transitional housing. Where the inventory of sites, pursuant to paragraph (3) of subdivision (a), does not identify adequate sites to accommodate the need for groups of all household income levels pursuant to Section 65584, the program shall provide for sufficient sites with zoning that permits owner-occupied and rental multifamily residential use by right, including density and development standards that could accommodate and facilitate the feasibility of housing for very low and low-income households (Section 65583(c)(l)). As noted in Finding A-1, the element does not include a complete sites inventory or analysis; as a result, the adequacy of sites and zoning has not been established. Based on the results of a complete sites inventory and analysis, the City may need to add or revise programs to address a shortfall of sites and zoning for a variety of housing types. In addition: , Mixed-Use/Underutilized Sites: As the city is relying on underutilized sites and the potential for mixed-use development to accommodate the City's RHNA for lower- income households, the element must include specific program· actions to promote redevelopment of underutilized sites and lot consolidation including financial assistance, regulatory concessions or incentives to encourage and facilitate additional or more intense residential development on non-vacant and underutilized sites. Examples of incentives include: I) organizing special marketing events geared towards the development community; 2) posting the sites inventory on the local government's webpage; 3) identifying and targeting specific financial resources; and 4) reducing appropriate development standards. Small Sites/Lot Consolidation: The element relies on the potential of small sites to be consolidated to accommodate the City's share of the RHNA, particularly for lower- income households. As a result, the element must include specific programs to facilitate lot consolidation and development of housing on small sites. Staff's Response: Program A.3-1 was added as an incentive to develop affordable housing projects by including expedited permitting, financial assistance, requiring lot consolidation, and providing greater flexibility in development standards. 2. The housing element shall contain programs which assist in the development of adequate housing to meet the needs of extremely low, very low, low and moderate- income households (Section 65583(c)(2)). Item 9.a. - Page 9 CITY COUNCIL HOUSING ELEMENT UPDATE; GPA 11-002 OCTOBER 22, 2013 PAGE10 While the element includes some programs to assist in the development of low and moderate-income households, pursuant to Chapter 891, Statutes of 2006 (AT 2634), existing programs should either be expanded or new programs added to specifically assist in the development of a variety of housing types to meet the housing needs of extremely low-income (ELI) households. To address this requirement, the element could revise programs to prioritize some funding for the development of housing affordable to ELI households, and/or offer financial incentives . or regulatory concessions to encourage the development of housing types, such as multifamily, single-room occupancy (SRO) units, and supportive housing, which address some of the needs of this income group. Staff's Response: Reference to extremely low-income households has been included throughout the document where appropriate. 3. The housing element shall contain programs which address, and where appropriate and legally possible, remove governmental constraints to the maintenance, improvement, and development of housing (Section 65583(c)(3)). As noted in Finding A-2, the element requires a complete analysis of potential governmental constraints. Depending upon the results of that analysis, the City may need to revise or add programs and address and remove or mitigate any identified constraints. Staff's Response: Programs have been added (A.3-1, B.3-2 and G.1-3) to reduce governmental constraints and provide incentives for the development of affordable housing. 4. The housing program shall promote equal housing opportunities for all persons regardless of race, religion, sex, marital status, ancestry, national origin or color . (Section 65583(c)(5)). Program N.1-1 (Fair Housing): While the Program commits to prepare a brochure promoting equal housing opportunities and make it available at all City counters and on the City's website, broad dissemination is essential to promoting housing opportunities for all persons. For example, many people may not visit the City's counters or website. As a result, the Program should commit to additional methods to ensure fair housing information is promoted. For example, the program could: • Distribute educational materials to property owners, apartment managers, and tenants every two years; • Make public service announcements through different media (e.g., newspaper ads and public service announcements at local radio and television channels) at least two times a year; and • Conduct public presentations with different community groups. Item 9.a. - Page 10 CITY COUNCIL HOUSING ELEMENT UPDATE; GPA 11-002 OCTOBER 22, 2013 PAGE11 Staff's Response: Program N.1-1 was amended to address this issue. C. Quantified Objectives Establish the number of housing units by income level that can be constructed, rehabilitated, and conserved over afive-year timefram (Section 65583(b)(1&2)). While the element includes quantified objectives for extremely-low income, very-low income, and low-income categories, it must also include moderate and above moderate objectives. Staff's Response: The document was amended to include quantified objectives for all income categories. Staff revised the draft Housing Element in response to HCD's concerns outlined above ) . and for other consistency purposes. In summary, the following specific 'amendments have been incorporated into the draft Housing Element: • Language added under General Plan Consistency regarding AB 162. • Updated Section 1.4 on Public Participation. • Eliminated Program A.2-2 regarding allowing separate water meters' on second units since this has already been implemented. • Added Program A.3-1 to include affordable housing incentives. • Eliminated original Policy 8.3 (establish lower fees) since this is redundant with Policy A.3. • Added Policies 8.3-1 and 8.3-2 regarding "Extremely Low-Income" housing (definition and incentives). • Eliminated reference to the City's previous Redevelopment Agency and RDA housing set-aside fund throughout the document. • Added extremely low-income households to goals, policies and programs (specifically Goals 8; C, D, G, and throughout the document for consistency). • Added Program G.1-2 regarding incentives for new housing construction and rehabilitation. • Added Program G.1-3 to amend the Development Code to allow development of 5 or more multiple-family attached units in the MF and MFA zoning districts with a Minor Use Permit (MUP). • Added Policy 1.2 and Program 1.2-1 regarding the preservation of affordable units at risk of converting to market rate. • Modified Goal J to include persons with disabilities. • Modified Program J.1-1 to include other special needs groups (e.g. transitional housing). • Modified Program K.2-1 to expand discussion about land available in the IMU and HMU zoning districts for transitional housing. • Added developmentally disabled individuals to Policy L.1. Item 9.a. - Page 11 CITY COUNCIL HOUSING ELEMENT UPDATE; GPA 11-002 OCTOBER 22, 2013 PAGE12 • Added Program L.1-1 regarding exploring models to encourage the creation of housing for persons with disabilities. • Amended Program N.1-1 to add methods that increase .public awareness about the Fair Housing Law. • Added Goal P to reduce governmental and infrastructure constraints to the improvement and development of housing for people of all income levels. Added Policy P .1 and Program P .1-1. • Updated quantities and added "Above Moderate~income" column to Table 2-1 (Quantified Objectives by Income Group). • Added an explanation regarding reasonable accommodation for persons with disabilities and a new "Developmentally Disabled" subsection in Section 3.5. • Added information in Section 3.6 about at-risk affordable housing properties that have been lost to market rate, and a discussion about the costs of preserving at- risk units compared to the costs of new construction and acquisition-rehab. • Updated Section 4.2 to include market rate rental information and additional information regarding second units. Expanded discussion about how the City meets the remaining 2007-2015 RHNA numbers. • Extensive revisions to Section 4.3 regarding land availability, including further analysis of vacant land and underutilized sites. Tables 4-7 and 4-8 were considerably expanded. • Under Section 5.1 (Governmental Constraints), added Tables 5-2 (Housing Types Permitted by Zoning District -Residential Zones) and 5-3 (Housing Types Permitted by Zoning District -Mixed Use Zones). Explained the Minor Use Permit and Design/Architectural Review permitting processes. Added subsections: Flooding, Earthquakes and Ground-Shaking, and Landslides. ADVANTAGES: The Housing Element Update provides the necessary conditions for producing and preserving an adequate supply of affordable housing, including special needs housing. The Housing Element Update includes strategies that address the City's local housing needs, including an inventory of land adequately zoned for housing in all income categories and a commitment to assist in housing development through regulatory concessions and incentives. State law requires jurisdictions to make a diligent effort to involve all economic segments of the community in the Housing Element Update process. The public hearing process provides an opportunity for the public to identify problems and propose solutions to housing issues facing the City. By submitting the Housing Element to HCD and obtaining certification, the City will be in compliance with the statutory procedure for adoption of an updated Housing Element. A certified housing element makes the City eligible for State and Federal funding for various housing programs. DISADVANTAGES: Some of the policies identified encourage increased densities for infill sites and as such could result in parking or other neighborhood issues related to future proposed projects. Item 9.a. - Page 12 CITY COUNCIL HOUSING ELEMENT UPDATE; GPA 11-002 OCTOBER 22, 2013 PAGE13 However, though the Housing Element Update provides for policies to ensure there are adequate sites for housing, development of housing at maximum densities is not required and all projects are subject to CEQA review. ENVIRONMENTAL REVIEW: Staff has reviewed the Housing Element Update in accordance with the California Environmental Quality Act (CEQA) and has prepared an Initial Study and Draft Negative Declaration (Attachment 5) for Council consideration and action. If the Negative Declaration is not adopted, the document cannot be approved at this time. PUBLIC NOTIFICATION AND COMMENTS: A Public Notice was placed in the Tribune on Friday October 11, 2013 for the City Council hearing. The Agenda was posted in front of City Hall on Thursday, October 17, 2013. The Agenda and report were posted on the City's website on Friday, October 18, 2013. No public comments were received. Attachments: 1. Planning Commission Meeting Minutes of November 15, 2011 2. City Council Meeting Minutes of December 13, 2011 3. Letter from HCD dated June 24, 2013 4. Draft Housing Element (under separate cover) 5. Draft Negative Declaration Item 9.a. - Page 13 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING GENERAL PLAN AMENDMENT NO. 11-002 AND ADOPTING AN INITIAL STUDY/NEGATIVE DECLARATION; HOUSING ELEMENT UPDATE FOR THE 2007-2015 REGIONAL HOUSING NEEDS ASSESSMENT (RHNA) CYCLE WHEREAS, Section 65302 of the California Government Code requires every city and county in California to adopt a Housing Element as part of its General Plan; and WHEREAS, State law further requires that the City of Arroyo Grande's ("City") Housing Element be updated at least every five years to demonstrate that the jurisdiction is capable of accommodating its "fair share" of the region's housing needs and complies with the current requirements of State law; and WHEREAS, cities and the unincorporated area of San Luis Obispo County were assigned new Regional Housing Needs Allocations in 2007; and WHEREAS, the City was given a Regional Housing Needs Allocation of 362 housing units for 2007-2015, including 84 units of very low income housing, 59 units of low income housing, 67 units of moderate income housing, and 152 units of above moderate housing; and WHEREAS, duly noticed public workshops were held by the Planning Commission on November 1, 2011 and November 15, 2011; and WHEREAS, a duly noticed public hearing was held by the City Council on December 13, 2011, at which time all interested persons were given the opportunity to be heard; and WHEREAS, on December 13, 2011, the City Council authorized the submittal of the draft Housing Element Update to the State Department of Housing and Community Development ("HCD"), pending minor changes; and WHEREAS, the City submitted the adopted Housing Element Update to HCD on January 19, 2012; and WHEREAS, the City received verbal comments from HCD on February 27, 2012, which the City responded to on March 9, 2012; and WHEREAS, the City received written comments from HCD on March 23, 2012 suggesting further refinements and changes to the draft Housing Element Update; and WHEREAS, after several verbal communications with HCD, the City responded to HCD recommendations in a letter dated June 21, 2013; and WHEREAS, HCD submitted a letter on June 24, 2013 stating that the revised draft Housing Element Update meets the statutory requirements; and Item 9.a. - Page 14 RESOLUTION NO. PAGE2 WHEREAS, a duly noticed public hearing was held by the Planning Commission on September 17, 2013, at which time all interested persons were given the opportunity to be heard; and WHEREAS, a duly noticed public hearing was held by the City Council on October 22, 2013, at which time all interested persons were given the opportunity to be heard; and WHEREAS, the City Council has reviewed and considered the information and public testimony presented at the public hearing and the information contained in the Housing Element Update and staff report; and WHEREAS, the City Council has reviewed this project in compliance with the California Environmental Quality Act (CEQA) and determined that a negative declaration can be adopted. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of arroyo Grande hereby approves General Plan Amendment No. 11-002, thereby approving the Housing Element Update and adopting the Negative Declaration. On motion of Council Member the following roll call vote, to wit: AYES: NOES: ABSENT: , seconded by Council Member , and on the foregoing Resolution was passed and adopted this 22"d day of October, 2013. Item 9.a. - Page 15 RESOLUTION NO. PAGE3 TONY FERRARA, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY Item 9.a. - Page 16 PLANNING COMMISSION MINUTES NOVEMBER 15, 2011 The motion was approved by the following roll call vote: AYES: NOES: ABSENT: Commissioners Keen, Sperow, Martin, and Ruth None Barneich -the foregoing Resolution was adopted this 15th day of November 2011. II. PUBLIC HEARING ITEMS: AITACHMENT1 A. PUBLIC WORKSHOP TO REVIEW AND COMMENT ON THE DRAFT HOUSING ELEMENT UPDATE; GENERAL PLAN AMENDMENT CASE NO. 11-002; APPLICANT -CITY OF ARROYO GRANDE; LOCATION -CITYWIDE Associate Planner Kelly Heffernen presented the staff report for the Commission to hold a public workshop to discuss the proposed City of Arroyo Grande Draft Housing Element Update. The intent of the workshop is to provide information and share ideas about housing issues in Arroyo Grande. No action will be taken at this meeting. Amy Sinsheimer, AICP, consultant, Lisa Wise Consulting, Inc., presented the Arroyo Grande Draft Housing Element Update. The following discussion ensued: new policies and programs related to attainable housing; additional alternatives for providing in-lieu affordable housing fees including a "sweat equity" alternative; "green" requirements including solar orientation; Chapter 6 review of previous Housing Element -goal M. of current draft rela~ing to energy efficiency; Program A.2-2 relating to separate water meters on second units; separate electrical meters on second units; and new regulations relating to the siting of homeless shelters. The meeting was opened to the public: Steve Ross, Garden Street, had questions for staff, which were answered and he provided the following comments: in favor of maintaining strong language in the Housing Element regarding solar orientation even if developers lose total number of units allowable in a development; City is lacking light commercial/light industrial land uses and thinks there is a demand for this type of use, which allows Mom and Pop type businesses to locate and provide jobs; these types of industrial businesses could have apartments -live/work; remembel'6 the City Council being opposed to separate electrical units on second units; and has concern about the idea of eliminating the moderate category from Chapter 16.80. Chair Ruth summarized the Commission's input with the following: Further define attainable housing; concern about relaxing parking requirements for apartments; solar orientation issue - what does the Green Building Code say; and looks forward to a plan for East Grand Avenue as proposed in this draft. Community Development Director McClish stated the next step is to present the Draft Housing Element Update to the City Council on December 13, 2011, prior to submitting to the State. Item 9.a. - Page 17 Minutes: City Council/Redevelopment Agency Regular Meeting Tuesday, December 13, 2011 ATTACHMENT 2 release of the retention, thirty-five (35) days after the Notice of Completion recorded, if no liens have been filed. 9. PUBLIC HEARINGS 9.a. Consideration of Request from South County Sanitary Servi for Integrated Solid Waste Collection Rate Increase. City Manager Adams introduced Mr. Bill Statler who provided resentation on the proposed integrated solid waste collection rate increase proposal and r ommended the Council adopt a Resolution approving the South County Sanitary Service i egrated solid waste collection rate increase. Staff and Mr. Tom Martin from South Coun Sanitary Service, Inc. responded to questions from Council regarding actions other agen · s have taken to date, tipping fees, and the potential for offering customers the choice of a -gallon can. Mayor Ferrara opened the public hearing. S aking from the public in opposition to the rate increase was Patty Welsh, Pradera Court. aring no further comments, Mayor Ferrara closed the public hearing. Following brief discussion, the Cou cil requested that South County Sanitary Service provide options for offering a 20-gallon n when the next rate increase is considered. Additionally, Mayor Ferrara requested that outh County Sanitary Service include a survey in their billing prior to the next rate increas request to determine how many customers would be interested in 20-gallon service. Action: Council Me er Guthrie moved to adopt a Resolution entitled: "A RESOLUTION OF THE CITY COU IL OF THE CITY OF ARROYO GRANDE ESTABLISHING INTEGRATED SOLID WAST COLLECTION SERVICE RATES". Council Member Costello seconded, and Guthrie, Costello, Ferrara None Ray, Brown 9.b. Consideration of a Draft Housing Element Update Workshop; General Plan Amendment No. 11-002. Community Development Director McClish introduced consultant Lisa Wise who provided a presentation on the Housing Element Update and responded to questions from Council. Staff recommended the Council review the Draft Housing Element Update with Planning Commission comments and recommendations and authorize submittal of the draft document to the State Department of Housing and Community Development in accordance with the requirements of Government Code Section 65585. Mayor Ferrara opened the public hearing. Speaking from the public was Steve Ross, Garden Street, who expressed concern with elimination of incentives for passive solar systems. Hearing no further comments, Mayor Ferrara closed the public hearing. Item 9.a. - Page 18 Minutes: City Council/Redevelopment Agency Regular Meeting Tuesday, December 13, 2011 Page4 Brief discussion ensued regarding housing category allocations and making sure they fit the City's demographics, and form based zoning regulations. Council Member Guthrie requested that staff research other cities that have instituted ~based zoning regulations, and Mayor Ferrara requested that the demographics be revised in the Housing Element document. Action: Council Member Costello moved to authorize submittal of the draft document to the State Department of Housing and Community Development in accordance with the requirements of Government Code Section 65585, including appropriate changes determined by staff to the housing category allocations to fit the demographics of the City. Council Member Guthrie seconded, and the motion passed on the following roll call vote: AYES: NOES: c ABSENT: Costello, Guthrie, Ferrara None Ray, Brown 11.a. Consi ation of a Resolution Repealing the Green Business Economic Incentive Program. C/RDA] City Manager Adams r ommended this item be continued indefinitely due to the fact that the City has received interest m two potential businesses in the last week. Mayor/Chair Ferrara opened tli public comment period. There were no comments received, and the public comment period wa closed. Action: Council/Board Member stello moved to postpone this item indefinitely. Council/Board Member Guthrie seconded, d the motion passed on the following roll call vote: AYES: NOES: ABSENT: Costello, Guthrie, Ferrara None Ray, Brown 11.b. Consideration of Selection of Council Member Mayor Ferrara recommended that due to Council Member Brown absence at this meeting, that this item be postponed to the next regular meeting in January. Action: Council Member Costello moved to GOntinue this item to the reg r meeting of January 10, 2012, Council Member Guthrie seconded, and the motion passed u nimously by voice vote. 12. CITY COUNCIL MEMBER ITEMS None. Item 9.a. - Page 19 STATE OE CAI IFORNIA -BUSINESS TRANSPORTATION AND HOUSING AGENCY DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT 1800 Third Street, Suite 430 P. 0. Box 952053 Sacramento, CA 94252-2053 (916) 323-3177 /FAX (916) 327-2643 www.hcd.ca.gov June 24, 2013 . Ms. Teresa McClish, Director Community Development Department City ofArroyo Grande 300 E. Branch Street Arroyo Grande, CA 93420 Dear Ms. McClish: EDMUND G BROWN JR Governor ATTACHMENT 3 RE: City of Arroyo Grande's 4thcycle (2009-2014) Draft Housing Element Update Thank you for submitting the City of Arroyo Grande's revised draft housing element update received for review on May 20, 2013, along with additional revisions received on June 11 and 21, 2013. Pursuant to Government Code Section 65585(b ), the Department is reporting the results of its review. A telephone conversation on June 6, 2013 with Ms. Kelly Heffernen, Associate Planner, facilitated the review. The revised draft element meets the statutory requirements described in the Department's March 23, 2012 review. This finding was based on, among other things, the identification of adequate sites to accommodate the City's Regional Housing Need Allocation for lower- income households. The revised element will comply with State hom~ing element law (Article 10.6 of the Government Code) when adopted and submitted to the Department, pursuant to Government Code Section 65585(g). The Department appreci~tes the hard work and dedication that Ms. Heffernontprovided in preparing the housing element and looks forward to receiving Arroyo Grande's· adopted housing element. If you have any questions or need additional technical assistance, please contact Robin Huntley, of our staff, at (916) 323-3175. Sincerely, ~1::~~ Assistant Deputy Director Item 9.a. - Page 20 ATTACHMENT 4 HOUSING ELEMENT UPDATE (The draft Housing Element was distributed to Council Members under separate cover. The document is available to review at City Hall, on the City's website (www.arroyogrande.org), and at the South County Public Library). Item 9.a. - Page 21 INITIAL STUDY/ NEGATIVE DECLARATION Housing Element Update ATTACHMENT 5 INITIAL STUDY/ NEGATIVE DECLARATION GPA No. 11-002 Housing Element Update 2007-2015 August 2013 August 2013 Page 1of33 Item 9.a. - Page 22 INITIAL STUDY/ NEGATIVE DECLARATION Housing Element Update Project: General Plan Amendment (GPA) No. 11-002 Housing Element Update 2007-2015 Lead Agency: City of Arroyo Grande Document Availability: City of Arroyo Grande Community Development Department 300 East Branch Street Arroyo Grande, CA 93420 (805) 473-5420 http://www.a rroyogra nde .org/ Project Description: August 2013 The project is an update of the Housing Element of the City of Arroyo Grande (City) General Plan. The Housing Element is one of the seven General Plan Elements mandated by the State of California, as required in Government Code Sections 65580 to 65589.8. The Housing Element is a comprehensive policy document that describes the City's housing needs and provides goals, policies; and programs to facilitate the development, improvement, and preservation of housing for all economic segments of the community. State law requires that the Housing Element consist of "identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, and scheduled programs for the preservation, improvement and development of housing." Along with the Land Use Element, the Housing Element provides policy guidance for decision making related to housing. Furthermore, the Housing Element sets forth the City's strategy for enhancing and preserving the housing stock and expanding housing opportunities for various economic segments. The California Department of Housing and Community development (HCD) projects statewide housing needs and allocates those needs to each Regional government in the State. For Arroyo Grande, the Regional agency is the San Luis Obispo Council of Governments (SLOCOG) .. After consultation with SLOCOG, HCD provided the regional need to SLOCOG, which then distributed the Regional Housing Needs Allocation (RHNA) to the unincorporated county and cities within the SLOCOG region. SLOCOG allocates housing production goals for each jurisdiction primarily based on their "fair-share" of the region's population growth, which is outlined in the SLOCOG Regional Housing Needs Plan (RHNP). The City of Arroyo Grande last adopted a Housing Element in 2003, which the City amended in 2005 to include recommendations from HCD. HCD certified the City's amended Housing Element on June 22, 2005. This was the City's first Housing Element certified by HCD. On November 28, 2007, the City updated the Housing Element to be in compliance with Government Code Section 65915 . regarding density bonuses and developr:nent concessions for qualified affordable housing projects. Page 2 of 33 Item 9.a. - Page 23 INITIAL STUDY/ NEGATIVE DECLARATION Housing Element Update August 2013 Of the 4,885 housing units allocated to SLOCOG for this planning period, Arroyo Grande will need to accommodate 362 units. One of the primary purposes of the Housing Element update is to demonstrate the City's ability to accommodate residential development to meet the RHNA. According to the 2007- 2015 Regional Housing Needs Plan, Arroyo Grande will need to accommodate 84 very low-income, 59 low-income, 67 moderate-income, and 152 above moderate-income housing units (362 units total). The City's final share of the Regional Housing Need takes into consideration the number of units already constructed or approved during the 2007-2015 planning period, which includes second units. The revised RHNA for the City includes accommodation for 61 very low-income, 18 low-income, and-47 moderate-income housing units (138 total). It is assumed that the above moderate-income units will be accommodated by market demand and do not need to be addressed in the form of policy analysis. An inventory of vacant land shows a realistic potential for 219 new units, 129 of which are located on higher density parcels appropriate for housing that is affordable to lower income households. Opportunity sites provide an additional 327 total units, 276 of which could be affordable to lower income households. Thus, the City is able to demonstrate the capacity to meet the RHNA for lower income households for the current planning period. In addition to meeting the RHNA requirement, the Housing Element has the following goals: l. Support the maintenance and rehabilitation of the City's existing housing stock and residential neighborhoods. 2. Provide diverse, high quality housing choices appropriate for residents at all levels of income. 3. Reduce governmental and infrastructure constraints to the improvement and development of housing for people of all income levels. 4. Increase housing opportunities for persons with special housing needs. 5. Increase public awareness of remedies for housing discrimination. 6. Encourage energy and resource efficiency in the design of all new residential developments, to the extent practical. The Housing Element is consistent with the land uses envisioned in the Arroyo Grande 2001 General Plan. Some of the proposed goals, policies, and programs, if implemented, could increase the density for housing that would be authorized in several zoning districts. Other policies and programs have been developed to encourage and promote the development of affordable housing. In order to accommodate the additional housing need within the City of Arroyo Grande, and to comply with State law, the Housing Element includes programs that require the City to amend the Development Code. Development Code changes associated with implementation of the Housing Element would require the appropriate level of environmental review. No specific sites have been selected, nor does the Housing Element provide entitlement for projects. Additional CEQA review will be required to address the level and significance of environmental impacts resulting from future development projects. The Housing Element policies promote compact development and smart growth, which in itself will mitigate some development impacts on infrastructure, public services, air quality and transportation. Page 3 of 33 Item 9.a. - Page 24 INITIAL STUDY/ NEGATIVE DECLARATION Housing Element Update Summary Document Preparation: August 2013 Pursuant to Section 21082.1 of the California Environmental Quality Act, the City of Arroyo Grande (the City) has independently reviewed and analyzed the Initial Study and Negative Declaration for the proposed project and finds that these documents reflect the independent judgment of the City. Teresa McClish, AICP Date Community Development Director Date Page 4of 33 Item 9.a. - Page 25 INITIAL STUDY/ NEGATIVE DECLARATION Housing Element Update Table of Contents: August 2013 Introduction ................................................................................................................................................... 7 Introduction and Regulatory Guidance ..................................................................................................... 7 Lead Agency .............................................................................................................................................. 7 Purpose and Document Organization ....................................................................................................... 7 Summary of Findings ................................................................................................................................. 8 Project Description ........................................................................................................................................ 9 lntroduction ............................................................................................................................................... 9 Background and Need for Project ............................................................................................................. 9 Other Required Public Agency Approvals ................................................................................................. 9 Related Projects ........................................................................................................................................ 9 Environmental Checklist .............................................................................................................................. 10 Project Information ................................................................................................................................. 10 Environmental Factors Potentially Affected ........................................................................................... 12 Determination .................................................................................................. , ...................................... 12 Evaluation of Environmental Impacts ..................................................................................................... 13 Environmental Issues .................................................................................................................................. 14 1. Aesthetics ............................................................................................................................................ 14 2. Agriculture and Forestry Resources .................................................................................................... 14 3. Air Quality ............................................................................................................................................ 15 4. Biological Resources ............................................................................................................................ 16 5. Cultural Resources ............................................................................................................................... 18 6. Geology and Soils ................................................................................................................................ 18 7. Greenhouse Gas Emissions ................................................................................................................. 20 8. Hazards and Hazardous Materials ....................................................................................................... 20 9. Hydrology and Water Quality .............................................................................................................. 22 10. Land Use and Planning ...................................................................................................................... 24 11. Mineral Resources ............................................................................................................................. 24 12. Noise .................................................................................................................................................. 25 13. Population and Housing .................................................................................................................... 26 14. Public Services ................................................................................................................................... 26 15. Recreation ......................................................................................................................................... 27 16. Transportation/Traffic ......................................................... -.............................................................. 28 17. Utilities and Service Systems ............................................................................................................. 29 Pages of 33 Item 9.a. - Page 26 INITIAL STUDY/ NEGATIVE DECLARATION Housing Element Update August 2013 Mandatory Findings of Significance ............................................................................................................ 31 References ................................................................................................................................................... 33 Page 6 of 33 Item 9.a. - Page 27 INITIAL STUDY/ NEGATIVE DECLARATION Housing Element Update Introduction Introduction and Regulatory Guidance August 2013 The Initial Study/ Negative Declaration (IS/ND) has been prepared by the City of Arroyo Grande (the City) to evaluate the potential environmental effects of the proposed project. This document has been prepared in accordance with the California Environmental Quality Act (CEQA), Public Resources Code §21000 et seq., and the State CEQA Guidelines, California Code of Regulations (CCR) §15000 et seq. An Initial Study is conducted by a lead agency to determine if a project may have a significant effect on the environment [CEQA Guidelines §i5063(a)]. If there is substantial evidence that a project may have a significant effect on the environment, an Environmental Impact Report (EIR) must be prepared, in accordance with CEQA Guidelines §15064(a). However, if the lead agency determines that revisions in the project plans or proposals made by or agreed to by the applicant avoid, reduce or mitigate the potentially significant effects to a less-than-significant level, a Mitigated Negative Declaration may be prepared instead of an EIR [CEQA Guidelines §15070(b)]. The lead agency prepares a written statement describing the reasons a proposed project would not have a significant effect on the environment and, therefore, why an EIR need not be prepared. This IS/ND conforms to the content requirements under CEQA Guidelines §15071. Lead Agency The lead agency is the public agency with primary approval authority over the proposed project. In accordance with CEQA Guidelines §15051(b)(l), "the lead agency will normally be an agency with general governmental powers, such as a city or county, rather than an agency with a single or limited purpose." The lead agency for the proposed project is the City of Arroyo Grande. The contact person for the lead agency is: Kelly Heffernen, AICP Associate Planner City of Arroyo Grande Arroyo Grande, CA 93420 (805) 473-5420 Purpose and Document Organization The purpose of this document is to evaluate the potential environmental effects of the proposed project. This document is organized as follows: • Introduction: This chapter provides an introduction to the project and describes the purpose and organization of this document. • Project Description: This chapter describes the reasons for the project, scope of the project, and project objectives. • Environmental Setting, Potential Impacts and Mitigation Measures: This chapter identifies the significance of potential environmental impacts, explains the environmental setting for each environmental issue, and evaluates the potential impacts Page 7 of 33 Item 9.a. - Page 28 INITIAL STUDY/ NEGATIVE DECLARATION Housing Element Update August 2013 identified in the CEQA Environmental (Initial Study) Checklist. Mitigation measures are incorporated, where appropriate, to reduce potentially significant impacts to a less-than- significant level. • Mandatory Findings of Significance: This chapter identifies and summarizes the overall significance of any potential impacts to natural and cultural resources, cumulative impacts, and impact to humans, as identified in the Initial Study. • References: · This chapter identifies the references and sources used in the preparation of this IS/MND. It also provides a list of those involved in the preparation of this document. Summary of Findings Section 3 of this document contains the Environmental (Initial Study) Checklist that identifies the potential environmental impacts (by environmental issue) and a brief discussion of each impact resulting from implementation of the proposed project. In accordance with §15064(f) of the CEQA Guidelines, a Negative Declaration shall be prepared if the lead agency determines there is no substantial evidence that the project may have a significant effect on the environment. It is proposed that a Negative Declaration be adopted in accordance with the CEQA Guidelines. Page 8 of 33 Item 9.a. - Page 29 INITIAL STUDY/ NEGATIVE DECLARATION Housing Element Update Project Description Introduction August 2013 The City of Arroyo Grande (the City) has prepared this Initial Study/Negative Declaration (IS/ND) to evaluate the potential environmental effects of the Housing Element Update. The Housing Element is one of seven General Plan Elements mandated by the State of California pursuant to Government Code Sections 65580 to 65589.8. The Housing Element is a comprehensive policy document that describes the City's housing needs and provides goals, policies, and programs to facilitate the development, improvement and preservation of housing for all economic segments of the community. Project Scope and Location The Housing Element affects all properties within the Arroyo Grande City limits. Background and Need for Project As part of its .General Plan, each city and county in the State of California is required to prepare a Housing Element. In creating the Housing Element law, the Legislature's purpose was to ensure that local governments would marshal available resources, develop appropriate local programs and cooperate with one another in order to address local and regional housing needs and the State's housing goals. The Housing Element must identify and analyze the community's housing needs and provide a statement of goals, policies, quantified objectives, financial resources and scheduled programs for the preservation, improvement and development of housing. The Housing Element must identify adequate sites to meet the housing needs of all economic sectors of the community and permit a variety of housing types. Other Required Public Agency Approvals None. Related Projects None. Page 9 of 33 Item 9.a. - Page 30 INITIAL STUDY/ NEGATIVE DECLARATION Housing Element Update Environmental Checklist Project Information Project Title: Lead Agency Name & Address: Contact Person & Telephone Number: Project Location: Project Sponsor Name & Address: General Plan Designation: Zoning: Description of Project: Project Setting: Housing Element Update (GPA 11-002) City of Arroyo Grande 300 East Brach Street Arroyo Grande, CA 93420 Kelly Heffernan, Associate Planner (805) 473-5420 Citywide City of Arroyo Grande 300 East Brach Street Arroyo Grande, CA 93420 Various Various August 2013 Update of the City's Housing Element of the General Plan pursuant to Government Code Sections 65580 to 65589.8. Arroyo Grande's distinctive character derives from its traditional ties to agriculture, physical diversity, unique village, small town atmosphere and rural setting. The City is largely built-out and is expected to experience only modest growth over the next 25 years. Arroyo Grande is located in the southwestern portion of San Luis Obispo County. The City is 5.45 square miles in size (3,388 acres), and has an estimated population of 17,252 (U.S. 2010 Census). The Pacific Ocean lies approximately 1.5 miles to the west of Arroyo Grande, and U.S. 101 extents northwest and southeast through the middle of the City. There are several creeks and tributaries that traverse the City, including Arroyo Grande Creek which runs in a generally north-south direction through the eastern portion of the City. The topography of Arroyo Grande ranges from moderate and steep hillsides to the north of U.S. 101 to relatively flat parcels toward the center of town, to moderate slopes further south. The Wilmar Avenue fault is a potentially active fault adjacent to the City, and the Pismo fault underlies portions of Arroyo Grande but is inactive and poses very low potential fault rupture hazard to the City. Page 10 of 33 Item 9.a. - Page 31 INITIAL STUDY/ NEGATIVE DECLARATION Housing Element Update August 2013 Arroyo Grande is bounded by the Cities of Grover Beach and Pismo Beach to the southwest and west and to the unincorporated County to the north, east and south. Residential Rural and Suburban development characterize unincorporated areas to the north and southeast, and Agricultural uses dominate the Arroyo Grande Valley that extends northeast and south of the City. Page 11of33 Item 9.a. - Page 32 INITIAL STUDY/ NEGATIVE DECLARATION Housing Element Update Environmental Factors Potentially Affected August 2013 The environmental factors checked below would be potentially affected by this project, involving at least one impact that is a "Potentially Significant Impact", as indicated by the checklist on the following pages: D Aesthetics D Biological Resources D Greenhouse Gas Emissions , 0 Land Use/Planning D Population/Housing D Transportation/Traffic Determination D Agricultural Resources D Cultural Resources D Hazards & Hazardous Materials D Mineral Resources D Public Services D Utilities/Service Systems On the basis of this initial evaluation: D Air Quality D Geology/Soils D Hydrology/Water Quality D Noise D Recreation D Mandatory Findings of Significance ~ I find that the proposed project COULD NOT have a significant effect on the environment and a NEGATIVE DECLARATION will be prepared. D I find that, although the original scope of the proposed project COULD have had a significant effect on the environment, there WILL NOT be a significant effect because·revisions/mitigations to the project have been made by or agreed to by the applicant. A MITIGATED NEGATIVE DECLARATION will be prepared. D I find that the proposed project MAY have a significant effect on the environment and an ENVIRONMENTAL IMPACT REPORT or its functional equivalent will be prepared. D I find that the proposed project MAY have a "potentially significant impact" or "potentially significant unless mitigated impact" on the environment. However, at least one impact has been adequately analyzed in an earlier document, pursuant to applicable legal standards, and has been addressed by mitigation measures based on the earlier analysis, as described in the report's attachments. An ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the impacts not sufficiently addressed in previous documents. D I find that, although the proposed project could have had a significant effect on the environment, because all potentially significant effects have been adequately analyzed in an earlier EIR or Negative Declaration, pursuant to applicable standards, and have been avoided or mitigated, pursuant to an earlier EIR, including revisions or mitigation measures that are imposed upon the proposed project, all impacts have been avoided or mitigated to a less-than- significant level and no further action is required. Kelly Heffernan, AICP Associate Planner Date Page 12 of 33 Item 9.a. - Page 33 INITIAL STUDY/ NEGATIVE DECLARATION Housing Element Update Evaluation of Environmental Impacts August 2013 1. A brief explanation is required for all answers, except "No Impact", that are adequately supported by the information sources cited. A "No Impact" answer is adequately supported if the referenced information sources show that the impact does not apply to the project being evaluated (e.g., the project falls outside a fault rupture zone). A "No Impact" answer should be explained where it is based on general or project-specific factors (e.g., the project will not expose sensitive receptors to pollutants, based on a project-specific screening analysis). 2. All answers must consider the whole of the project-related effects, both direct and indirect, including off-site, cumulative, construction, and operational impacts. 3. Once the lead agency has determined that a particular physical impact may occur, the checklist answers must indicate whether that impact is potentially significant, less than significant with mitigation, or less than significant. "Potentially Significant Impact" is appropriate when there is sufficient evidence that a substantial or potentially substantial adverse change may occur in any of the physical conditions within the area affected by the project that cannot be mitigated below a level of significance. If there are one or more "Potentially Significant Impact" entries, an Environmental Impact Report (EIR} is required. 4. A "Mitigated Negative Declaration" (Negative Declaration: Less Than Significant with Mitigation Incorporated) applies where the incorporation of mitigation measures, prior to declaration of project approval, has reduced an effect from "Potentially Significant Impact" to a "Less Than Significant Impact with Mitigation." The lead agency must describe the mitigation measures and briefly explain how they reduce the effect to a less than significant level. 5. Earlier analyses may be used where, pursuant to the tiering, program EIR, or other CEQA process, an effect has been adequately analyzed in an earlier EIR (including a General Plan) or Negative Declaration [CCR, Guidelines for the Implementation of CEQA, § 15063(c}(3}(D)]. References to an earlier analysis should: a) Identify the earlier analysis and state where it is available for review. b) Indicate which effects from the environmental checklist were adequately analyzed in the earlier document, pursuant to applicable legal standards, and whether these effects were adequately addressed by mitigation measures included in that analysis. c) Describe the mitigation measures in this document that were incorporated or refined from the earlier document and indicate to what extent they address site-specific conditions for this project. 6. Lead agencies are encouraged to incorporate references to information sources for potential impacts into the checklist or appendix (e.g., general plans, zoning ordinances, biological assessments). Reference to a previously prepared or outside document should include an indication of the page or pages where the statement is substantiated. 7. A source list should be appended to this document. Sources used or individuals contacted should be listed in the source list arid cited in the discussion. 8. Explanation(s) of each issue should identify: a) the criteria or threshold, if any, used to evaluate the significance of the impact addressed by each question and b) the mitigation measures, if any, prescribed to reduce the impact below the level of significance. Page 13 of 33 Item 9.a. - Page 34 INITIAL STUDY/ NEGATIVE DECLARATION Housing Element Update Environmental Issues 1. Aesthetics Environmental Setting August 2013 The City is mostly built-out, with distinct residential, commercial and agricultural districts and several mixed-use areas. The City also contains portions of three creeks and several open space areas. Would the project: a) Have a substantial adverse affect on a scenic vista? b) Substantially damage scenic resources, including, but not limited to, trees, rock outcroppings, and historic buildings within a state scenic highway? c) Substantially degrade the existing visual character or quality of the site and its surroundings? d) Create a new source of substantial light or glare which would adversely affect day or nighttime views in the area? Discussion Potentially Significant Impact D D D D Less Than Significant with Mitigation D D D D Less Than Significant Impact D D D D No Impact Adopting the updated Housing Element will have no effect on the scenic vistas within the City of Arroyo Grande. Impacts on scenic vistas resulting from anticipated future growth of the City have been addressed in the 2001 General Plan EIR. The 2001 General Plan seeks to protect view sheds with Policy C/OSl-1, which states that the City will "identify and protect scenic resources and view sheds associated with them." Aesthetic considerations, such as damage or degradation of scenic resources or visual character, effects on scenic vistas, and new sources of light and glare will be considered at the time site specific projects are proposed. The City's Design Guidelines for the Village Area and standards for other overlay districts are implementing tools to protect the character of neighborhoods and mitigate potential aesthetic impacts. a-d: No impacts. 2. Agriculture and Forestry Resources Environmental Setting The City of Arroyo Grande contains approximately 460 acres of active farmland, most of which is Prime Farmland consisting of Class I and Class II soils. Numerous goals, policies and objectives are provided in the City's Agriculture, Conservation and Open Space Element of the General Plan that are aimed at preserving agricultural land within the City limits. There are no forest resources located within the City. Page 14 of 33 Item 9.a. - Page 35 INITIAL STUDY/ NEGATIVE DECLARATION Housing Element Update Would the project: a) Convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant tO the Farmland Mapping and Monitoring Program of the California Resources Agency, to non-agricultural use? b) Conflict with existing zoning for agricultural use or a Williamson Act contract? c) Conflict with existing zoning for, or cause rezoning of, forest land (as defined in Public Resources Code section 12220)g)), timberland (as defined by Public Resources Code section 4526), or timberland zoned Timberland Production (as defined by Government Code section 51104(g))? d) Result in the loss of forest land or conversion of forest land to non-forest use? e) Involve other changes in the existing environment which, due to their location or nature, could result in conversion of Farmland to non-agricultural use? Discussion Potentially Significant Impact D D D D D Less Than Significant with Mitigation D D D D D Less Than Significant Impact D D D D D August 2013 ' No Impact Adopting the updated Housing Element will not by itself result in impacts to agricultural resources within the City of Arroyo Grande. There are no goals, policies or implementing measures in the Housing Element to convert agricultural land to residential development, or to amend the Development Code to allow more residential development within the Agricultural or Agriculture Preserve zoning districts. The update to the Housing Element is consistent with the Agriculture, Conservation and Open Space Element of the General Plan. a-e: No impacts. 3. Air Quality Environmental Setting San Luis Obispo County is in non-attainment status for ozone {0 3), respireable particulate matter (PMlO) and vinyl chloride under the California Air Resource Board (CARB) standards. The County is in attainment status for all other applicable CARB standards. Potentially Less Than Less Than Significant Significant with Significant No Impact Would the project: Impact Mitigation Impact a) Conflict with or obstruct implementation of the D D D applicable air quality plan? b) Violate any air quality standard or contribute substantially to an existing or projected air quality D D D violation? Page 15 of 33 Item 9.a. - Page 36 INITIAL STUDY/ NEGATIVE DECLARATION August 2013 Housing Element Update c) Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is in non-attainment under an applicable federal or state D D D ambient air quality standard (including releasing emissions which exceed quantitative thresholds for ozone precursors)? d) Expose sensitive receptors to substantial pollutant D D D ~ concentrations? e) Create objectionable odors affecting a substantial D D D ~ number of people? Discussion The San Luis Obispo County Air Pollution Control District (APCD) is charged with implementing regulations and programs to reduce air pollution and assist the unincorporated county and cities in reaching all outdoor air quality standards. APCD has developed the CEQA Air Quality Handbook to evaluate project specific impacts and determine if air quality mitigation measures are needed, or if potentially significant impacts could result. The City refers to this Handbook for all projects subject to CEQA. The Housing Element does not specifically identify housing sites and projects as a basis for identifying significant impacts such as violations of air quality standards, exposing sensitive receptors to substantial pollutant concentrations, or creating objectionable odors. Projects that involve rezoning or construction of housing units will be subject to project-specific environmental review. At such time, determination will be made as to whether that project will result in potentially significant impacts to air quality. a-e: No impacts. 4. Biological Resources Environmental Setting The City of Arroyo Grande has several areas with sensitive habitats that support various threatened, endangered, candidate, sensitive, or special status species. The General Plan Agriculture, Conservation and Open Space Element focuses on habitat protection through its policies and programs. Adopting the updated Housing Element will not by itself have a substantial adverse effect, either directly or indirectly through habitat modifications, on any species identified as a threatened, endangered, candidate, sensitive, or special status. No new or increased impacts above what is already anticipated in the 2001 General Plan will result from adoption of the Housing Element. The level and significance of environmental impacts resulting from future development projects will be further assessed in accordance with CEQA. Page 16 of 33 Item 9.a. - Page 37 INITIAL STUDY/ NEGATIVE DECLARATION Housing Element Update Would the project: a) Have a substantial adverse effect, either directly or through habitat modification, on any species identified as a sensitive, candidate, or special status species in local or regional plans, policies, or regulations, or by the California Department of Fish and Wildlife or the U.S. Fish and Wildlife Service? b) Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, or regulations, or by the California Department of Fish and Wildlife or the U.S. Fish and Wildlife Service? c) Have a substantial adverse effect on federally protected wetlands, as defined by §404 of the Clean Water Act (including, but not limited to, marsh, vernal pool, coastal, etc.) through direct removal, filling, hydrological interruption, or other means? d) Interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites? e) Conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or ordinance? f) Conflict with the provisions of an adopted Habitat Conservation Plan, Natural Community Conservation Plan, or other approved local, regional, or state habitat conservation plan? Discussion Potentially Significant Impact D D D D D D Less Than Significant with Mitigation D D D D D D Less Than Significant Impact D D D D D D August 2013 No Impact The 2001 General Plan focused planned development areas and higher residential densities to least sensitive sites within the City, and maximized appropriate land area for Mixed-Use to conserve remaining resource areas. The Housing Element is consistent with the Land Use and Agriculture, Conservation and Open Space Elements in this effort, advocating higher densities in non- environmentally sensitive areas and in clustered developme!ltS in an effort to preserve sensitive resources. Larger residential development would be subject to project-specific CEQA review. a-f: No impacts. Page 17 of 33 Item 9.a. - Page 38 INITIAL STUDY/ NEGATIVE DECLARATION Housing Element Update 5. Cultural Resources Environmental Setting August 2013 Previous investigations have indicated the presence of Native Americans within the present-day City Limits during prehistoric times. There are a handful of designated historical resources within the City, including the IOOF Hall, the Pauling House and the Bridge Street Bridge. Potentially Less Than Less Than Significant Significant with Significant No Impact Would the project: Impact Mitigation Impact a) Cause a substantial adverse change in the significance of a historical resource, as defined in D D D §15064.5? b) Cause a substantial adverse change in the significance of an archaeological resource, pursuant to D D D §15064.5? c) Disturb any human remains, including those interred D D D C8l outside of formal cemeteries? Discussion Adopting the Housing Element will not by itself cause a substantial adverse change in the significance of a historical resource within the City of Arroyo Grande. Future development within the City will be subject to environmental review and development standards as required by State law and City regulations. a-c: No impacts. 6. Geology and Soils Environmental Setting There are two faults within City Limits, the Pismo Fault and the Wilmar Avenue Fault. The Pismo Fault is an inactive fault, and presents a low risk to Arroyo Grande. The Wilmar Avenue fault is a potentially active fault that runs through the City, generally parallel to US 101. Approximately half of the City is at moderate risk for liquefaction caused by strong seismic ground shaking during an earthquake. These areas are primarily located south of US 101 and in the eastern part of the City. The majority of the City is at low risk for landslides. The areas at greatest risk are hillsides where greater slopes are located. The potential for slope stability hazards in valley areas is low to very low. The areas at greatest risk for landslide are just north of US 101 in the hillsides and in the eastern portions of the City. Page 18 of 33 Item 9.a. - Page 39 INITIAL STUDY/ NEGATIVE DECLARATION Housing Element Update Would the project: a) Expose people or structures to potential substantial adverse effects, including the risk of loss, injury, or death involving: i) Rupture of a known earthquake fault, as delineated on the most recent Alquist-Priolo Earthquake Fault Zoning Map, issued by the State Geologist for the area, or based on other substantial evidence of a known fault? (Refer to Division of Mines and Geology Special Publication 42.) ii) Strong seismic ground shaking? iii) Seismic-related ground failure, including liquefaction? iv) Landslides? b) Result in substantial soil erosion or the loss of topsoil? c) Be located on a geologic unit or soil that is unstable, or that would become unstable, as a result of the project and potentially result in on-or off-site landslide, lateral spreading, subsidence, liquefaction, or collapse? d) Be located on expansive soil, as defined in Table 18- 1-B of the Uniform Building Code {1994), creating substantial risks to life or property? e) Have soils incapable of adequately supporting the use of septic tanks or alternative waste disposal systems, where sewers are not available for the disposal of waste water? Discussion Potentially Significant Impact D D D D D Less Than Significant with Mitigation D D D D D Less Than Significant Impact D D D D D August 2013 No Impact Adopting the Housing Element will not by itself expose people or structures to potential substantial adverse effects, including the risk of loss, injury or death involving rupture of a known earthquake fault, strong seismic ground shaking, or seismic-related ground failure, including liquefaction and landslides. Impacts to persons and property associated with seismic activity resulting from full build-out of the General Plan were addressed in the 2001 General Plan EIR. Standard measures integrated into the General Plan in the form of goals, policies, and implementation measures applicable to future development projects will reduce the severity of potential impacts. Likewise, adopting the Housing Element by itself will not result in substantial soil erosion or the loss of topsoil, or cause structures to be subject to landslide, lateral spreading, subsidence, liquefaction or collapse. These issues were addressed in the 2001 General Plan EIR. Future development within the City will be subject to separate environmental review. a-e: No impacts. Page 19 of 33 Item 9.a. - Page 40 INITIAL STUDY/ NEGATIVE DECLARATION Housing Element Update 7. Greenhouse Gas (GHG) Emissions Environmental Setting August 2013 The City of Arroyo Grande emitted approximately 96,549 metric tons of carbon dioxide equivalent (C02e) in the baseline year 2005. The transportation sector was by far the largest contributor to emissions (57.0%), produc_ing approximately 55,030 metric tons of C02e in 2005. Emissions from the residential sector were the next largest contributor (24.6%), producing approximately 23,778 metric tons of C02e. The commercial and industrial sectors accounted for a combined 12.3% of the total. Emissions from solid waste comprised 6.0% of the total, and emissions from other sources such as agricultural equipment comprised 0.1%. The majority of emissions from the transportation sector were the result of gasoline consumption in private vehicles traveling on local roads, US Highway 101, and state highways. Greenhouse gas (GHG) figures from the waste sector are the estimated future emissions that will result from the decomposition of waste generated by city residents and businesses in the base year 2005, with weighted average methane capture factor of 60.0 % Potentially Less Than Less Than Significant Significant with Significant No Impact Would the project: Impact Mitigation Impact a) Generate greenhouse gas emissions, either directly or indirectly, that may have a significant effect on the D D D environment? b) Conflict with an applicable plan, policy or regulation adopted for the purpose of reducing the emissions of D D D greenhouse gases? Discussion Because the Housing Element is a policy-level document, it does not include any site-specific designs or proposals, nor does it grant any entitlements for development. Identifying or analyzing greenhouse gas emissions would be speculative at this time. Future residential development projects would be subject to separate environmental review, including a review of greenhouse gas emissions. Therefore, adopting the Housing Element itself will not generate significant greenhouse gas emissions. The Housing Element is consistent with the land use designations established by the Land Use Element of the 2001 General Plan. Future residential development projects would require compliance with General Plan policies, City codes and ordinances, and future City greenhouse gas reduction policies. a-b: No impacts. 8. Hazards and Hazardous Materials Environmental Setting · There are no known hazardous materials sites in the City, nor are there any airports within the vicinity of the City. Properties located east of U.S. Highway 101 are more prone to fire risk given the steeper topography and wooded open space areas. Page 20 of 33 Item 9.a. - Page 41 INITIAL STUDY/ NEGATIVE DECLARATION Housing Element Update Would the project: a). Create a significant hazard to the public or the environment through the routine transport, use, or disposal of hazardous materials? b) Create a significant hazard to the public or the environment through reasonably foreseeable upset and/or accident conditions involving the release of hazardous materials, substances, or waste into the environment? c) Emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste within one-quarter mile of an existing or proposed school? d) Be located on a site which is included on a list of hazardous materials sites, compiled pursuant to Government Code §65962.5, and, as a result, create a significant hazard to the public or environment? e) Be located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport? If so, would the project result in a safety hazard for people residing or: working in the project area? f) Be located in the vicinity of a private airstrip? If so, would the project result in a safety hazard for people residing or working in the project area? g) Impair implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan? h) Expose people or structures to a significant risk of loss, injury, or death from wildland fires, including areas where wildlands are adjacent to urbanized areas or where residences are intermixed with wild lands? Discussion Potentially Significant Impact D D D D D D D D Less Than Significant with Mitigation D D D D D D D D Less Than Significant Impact D D D D D D D D August 2013 No Impact The Housing Element is a policy document and by itself will not involve any physical development activity and therefore will not result in creation or emission of hazardous materials. Issues relative to hazardous materials were addressed in the EIR for the City's 2001 General Plan. In addition, regulations related to hazardous materials and waste are implemented by a number of government agencies that have established regulations regarding the proper transportation, handling, management, use, storage, and disposal of hazardous materials for specific operations and activities. Pursuant to CEQA, the Department of Toxic Substance Control maintains a hazardous-waste and substances sites list (Cortese List). No sites in Arroyo Grande are listed on the Cortese list. There are no properties within the City that are included in an Airport Plan. Page 21of33 Item 9.a. - Page 42 INITIAL STUDY/ NEGATIVE DECLARATION Housing Element Update August 2013 Implementation of Housing Element programs and development of physical buildings and sites, ineluding housing, to the extent that they are considered "projects" under CEQA, would require further environmental review and, where necessary, mitigation. Furthermore, all future development within the City will be subject to applicable Federal, State and local hazardous materials regulations. Adopting the Housing Element will cause no impacts from hazards or hazardous materials. a-h: No impacts. 9. Hydrology and Water Quality Environmental Setting The City of Arroyo Grande draws its water supply from a combination of the Lopez Reservoir and groundwater wells .. Wastewater service is provided by the South San Luis Obispo County Sanitation District. The City adopted interim low-impact development (LID) guidelines to address stormwater runoff issues in 2009. Would the project: a) Violate any water quality standards or waste discharge requirements? b) Substantially deplete groundwater supplies or interfere substantially with groundwater recharge, such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level (e.g., the production rate of pre-existing nearby wells would drop to a level that would not support· existing land uses or planned uses for which permits have been granted)? c) Substantially alter the existing drainage pattern of the site or area, including through alteration of the course of a stream or river, in a manner which would result in substantial on-or off-site erosion or siltation? d) Substantially alter the existing drainage pattern of the site or area, including through alteration of the course of a stream or river, or substantially increase the rate or amount of surface· runoff in a manner which would result in on-or off-site flooding? e) Create or contribute runoff water which would exceed the capacity of existing or planned stormwater drainage systems or provide substantial additional sources of polluted runoff? f) Substantially degrade water quality? g) Place housing within a 100-year flood hazard area, as mapped on a federal Flood Hazard Boundary or Flood Insurance Rate Map, or other flood hazard delineation map? Potentially Significant Impact D D D D D D D Less Than Significant with Mitigation D D D D D D D Less Than Significant Impact D D D D D D D No Impact Page 22 of 33 Item 9.a. - Page 43 INITIAL STUDY/ NEGATIVE DECLARATION Housing Element Update h) Place structures that would impede or redirect flood flows within a 100-year flood hazard area? i) Expose people or str.uctures to a significant risk of loss, injury, or death from flooding, including flooding resulting from the failure of a levee or dam? j) Result in inundation by seiche, tsunami, or mudflow? Discussion D D D August 2013 D D D D D D Adopting the Housing Element will not by itself violate any water quality standards or waste discharge requirements. The 2001 General Plan EIR was written assuming build-out projections. Since the updated Housing Element does not exceed these projections, there are no impacts for wastewater discharge or other water quality standards. In addition, all future development will be subject to site- specific environmental studies as determined appropriate by the City, and will comply with all applicable City policies related to water and waste discharge. As a policy document, the Housing Element will not result in the substantial depletion of ground water supplies. The development anticipated in the Housing Element does not exceed the build-out projected in the 2001 General Plan and addressed in the General Plan EIR, and therefore does not result in new impacts. New development must meet the City's water conservation requirements. These permit requirements will mitigate any potential impacts that could occur as a result of new development. ' The Housing Element does not propose conditions that alter the existing drainage pattern of a site or area, as it does not call for any specific development projects. Erosion and siltation resulting from the anticipated growth and development of the City were addressed in the 2001 General Plan EIR. No new or increased impact as a result of the Housing Element will result beyond what is already anticipated in the existing environmental documents. Depending on the attributes of each individual development proposal, future development will be subject to additional environmental review and compliance with all applicable policies related to drainage patterns and erosion or siltation on or offsite. The Housing Element itself will not alter existing drainage patterns in a manner that would result in substantially increasing the rate or amount of surface runoff and thereby result in flooding. Standard measures integrated into the General Plan in the form of goals, policies, and implementation measures will reduce the severity of potential impacts. Depending on the attributes of each individual development proposal, future development will be subject to additional environmental review and compliance with all applicable policies and regulations related to drainage patterns and surface runoff. The Housing Element will not create or contribute to conditions that would cause runoff water to exceed the capacity of existing or planned stormwater drainage systems or provide substantial additional sources of polluted runoff. Nor will the Housing Element substantially degrade local water quality. All future development will be subject to site-specific environmental studies as determined appropriate by the City, and will comply with all applicable City and State policies and regulations related to local water quality. a-j: No impacts. Page 23 of 33 Item 9.a. - Page 44 INITIAL STUDY/ NEGATIVE DECLARATION Housing Element Update 10. Land Use and Planning Environmental Setting August 2013 The City encompasses approximately 5.5 square-miles and is bisected north/south by US Highway 101. There are several distinct land use categories and zoning districts for residential, commercial, industrial, agricultural and mixed uses. The City is adjoined by the cities of Pismo Beach and Grover Beach to the west and unincorporated areas of San Luis Obispo County to the north, east and south. Would the project: a) Physically divide an established community? b) Conflict with the applicable land use plan, policy, or regulation of any agency with jurisdiction over the project (including, but not limited to, a general plan, specific plan, local coastal program, or zoning ordinance) adopted for the purpose of avoiding or mitigating an environmental effect? c) Conflict with any applicable habitat conservation plan or natural community conservation plan? Discussion Potentially Significant Impact D D D Less Than Less Than Significant with Significant No Impact Mitigation Impact D D ~ D D D D The Housing Element as a policy document is consistent with the other elements of the General Plan and will not physically divide the established Arroyo Grande community. Impacts resulting from the anticipated growth and development of the City were addressed in the 2001 General Plan EIR. Programs in the Housing Element that propose amendments to Development Code, including emergency shelters in select zoning districts, are intended to comply with State Housing Element Law and to promote housing opportunities. None of these programs conflict with regulations adopted for the purpose of avoiding or mitigating an environmental affect. In addition, these programs will be subject to CEQA, as applicable, when implemented. No new or increased impact as a result of the Housing Element will result above what is already anticipated in the existing environmental documents. a-c: No impacts. 11. Mineral Resources Environmental Setting There are no known mineral resources in the City of Arroyo Grande and therefore no mining operations located within the City limits. Would the project: a) Result in the loss of availability of a known mineral resource that is or would be of value to the region and the residents of the state? Potentially Significant Impact D Less Than Significant with Mitigation D Less Than Significant No Impact Impact D Page 24 of 33 Item 9.a. - Page 45 INITIAL STUDY/ NEGATIVE DECLARATION Housing Element Update b) Result in the loss of availability of a locally important mineral resource recovery site delineated on a local general plan, specific plan, or other land use plan? Discussion a-b: No impacts. 12. Noise Environmental Setting August 2013 D D D Noise exposure throughout the City is primarily caused by automobile traffic on surface streets and U.S. Highway 101, with intermittent noise generated by agricultural operations and construction activities. Would the project: a) Generate or expose people to noise levels in excess of standards established in a local general plan or noise ordinance, or in other applicable local, state, or federal standards? b) Generate or expose people to excessive groundborne vibrations or ground borne noise levels? c) Create a substantial permanent increase in ambient noise levels in the vicinity of the project (above levels without the project)? d) Create a substantial temporary or periodic increase in ambient noise levels in the vicinity of the project, in excess of noise levels existing without the project? e) Be located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport? If so, would the project expose people residing or working in the project area to excessive noise levels? f) Be in the vicinity of a private airstrip? If so, would the project expose people residing or working in the project area to excessive noise levels? Discussion Potentially Significant Impact D D D D D D Less Than Significant with Mitigation D D D D Less Than Significant Impact D D D D D D No Impact D The Noise Element of the 2001 General Plan includes goals and implementation measures designed to ·reduce noise impacts on new development, and the City's Noise Ordinance is the primary implementing tool of the Noise Element through specific noise standards. Adopting the Housing Element will not by itself result in exposure of persons to or generation of noise levels in excess of standards established in the Noise Element and Noise Ordinance. Future development projects would be subject to separate CEQA review. a-f: No impacts. Page 25 of 33 Item 9.a. - Page 46 INITIAL STUDY/ NEGATIVE DECLARATION Housing Element Update 13. Population and Housing Environmental Setting August 2013 Arroyo Grande has a population of 17,252 (2010 Census) with an average household size of 2.4 persons. Would the project: a) Induce substantial population growth in an area, either directly (for example, by proposing new homes and businesses) or indirectly (for example, through extension of roads or other infrastructure)? b) Displace ~ubstantial numbers of existing housing, necessitating the construction of replacement housing elsewhere? c) Displace substantial numbers of people, necessitating the construction of replacement housing elsewhere? Discussion Potentially Significant Impact D D D Less Than Significant with Mitigation D D D Less Than Significant Impact D D D No Impact Adopting the Housing Element will not by itself induce substantial population growth in the City. As required by State law, the Housing Element is designed to address the forecasted housing needs for the City of Arroyo Grande for the planning period. The population growth estimated for this Housing Elemerit is consistent with the housing growth estimated in the 2001 General Plan. New housing development on existing and available vacant land and within the parameters of housing densities established by the Land. Use Element will not induce substantial population growth beyond that estimated by the 2001 General Plan. Adopting the Housing Element will not by itself result in the displacement of substantial numbers of existing housing, necessitating the construction of replacement housing elsewhere. The Housing Element is designed to address the housing needs of the city. The document sets forth programs and policies to facilitate housing conservation and maintenance and therefore has the potential to improve the quality of the existing housing stock within the City. Adopting the Housing Element will also not result in the displacement of substantial numbers of people, necessitating the construction of replacement housing elsewhere. The City is largely built out with most r,esidential devleopmen consisting of infill development. a-c: No impacts. 14. Public Services Environmental Setting The City of Arroyo Grande administers its own police department and parks and recreation facilities. Fire protection is provided by the Five Cities Fire Authority through a joint powers agreement (JPA). The Lucia Mar Unified School District (LMUSD) provides K-12 educational facilities. Public services to the project site are readily provided by the City of Arroyo Grande. Page 26 of 33 Item 9.a. - Page 47 INITIAL STUDY/ NEGATIVE DECLARATION August 2013 Housing Element Update Potentially Less Than Less Than Significant Significant with Significant No Impact Would the project: Impact Mitigation Impact a) Result in significant environmental impacts from construction associated with the provision of new or physically altered governmental facilities, or the need for new or physically altered governmental facilities, to D D D maintain acceptable service ratios, response times, or I other performance objectives for any of the public services: Fire protection? D D D ~ Police protection? D D D ~ Schools? D D D ~ Parks? D D D ~ Other public facilities? D D D ~ Discussion Adopting the Housing Element will not by itself result in substantial adverse physical impacts associated with the provision of new or physically altered fire protection, police protection, school, parks or other governmental facilities. Impacts associated with these facilities were addressed in the 2001 General Plan EIR. Mitigation measures integrated into the General Plan in the form of goals, policies and implementation measures are designed to reduce all significant impacts to a level of less than significant. All fl.iture development will be subject to site-specific environmental studies and impact fees as determined appropriate by the City, and will comply with all applicable City policies and regulations related to public services. a: No impacts. 15. Recreation Environmental Setting The Recreation Department oversees recreational activities throughout the City and manages the City's various parks and open spaces. Would the project: a) Increase the use of existing neighborhood and regional parks or other recreational facilities, such that substantial physical deterioration of the facility would occur or be accelerated? b) Include recreational facilities or require the construction or expansion of recreational facilities that might have an adverse physical effect on the environment? Potentially Significant Impact D D Less Than Significant with Mitigation D D Less Than Significant Impact D No Impact D Page 27 of 33 Item 9.a. - Page 48 INITIAL STUDY/ NEGATIVE DECLARATION Housing Element Update Discussion August 2013 Adopting the Housing Element will not by itself result in substantial adverse physical impacts associated with the provision of new or physically altered park facilities or government services. Impacts associated with new park facilities resulting from the anticipated growth and development of the City were addressed in the 2001 General Plan EIR. a-b: No impacts. 16. Transportation/Traffic Environmental Setting The City's street network consists of a hierarchy of street types which serve different functions. These include freeways, arterials, collectors, local streets and alleyways. Freeways route traffic through the community and are characterized by large traffic volumes and high- speed travel. Arterials link residential and commercial districts and serve shorter through traffic needs. Due to the heavier traffic on arterials, adjacent land uses are intended to be a mix of commercial and multi-family residential. Collector streets link neighborhoods to arterials and are not intended for through traffic but are nonetheless intended to move traffic in an efficient manner. Local streets are designed to serve only adjacent land uses and are intended to protect residents from through traffic impacts. Would the project: a) Cause a substantial increase in traffic, in relation to existing traffic and the capacity of the street system (i.e., a substantial increase in either the number of vehicle trips, the volume to capacity ratio on roads, or congestion at intersections)? b) Exceed, individually or cumulatively, the level of service standards established by the county congestion management agency for designated roads or highways? c) Cause a change in air traffic patterns, including either an increase in traffic levels or a change in location, that results in substantial safety risks? d) Contain a design feature (e.g., sharp curves or a dangerous intersection) or incompatible uses (e.g., farm equipment) that would substantially increase hazards? e) Result in inadequate emergency access? f) Result in inadequate parking capacity? g) Conflict with adopted policies, plans, or programs supporting alternative transportation (e.g., bus turnouts, bicycle racks)? Potentially Significant Impact D D D D D D D Less Than Significant with Mitigation D D D D D D D Less Than Significant Impact D D D D D D D No Impact Page 28 of 33 Item 9.a. - Page 49 INITIAL STUDY/ NEGATIVE DECLARATION Housing Element Update Discussion August 2013 Adopting the updated Housing Element will not by itself cause an increase in traffic. Increase in traffic resulting from the anticipated growth and development of the City has been addressed in the 2001 General Plan EIR. The traffic impacts of any new residential development will be addressed in separate site-specific CEQA review. Adopting the Housing Element will not by itself cause traffic levels to exceed an established level of service standard. Impacts resulting from the anticipated growth and development of the City on the level of service for roads or highways were addressed in the 2001 General Plan EIR. Mitigation measures have been integrated into the General Plan in the form of goals, policies, and implementation measures to reduce all significant impacts to a level of less than significant. The traffic impacts of any new residential development will be addressed in separate site-specific CEQA review. Adoption of the Housing Element will not have any impact on air traffic patterns, given the nature and location of the anticipated residential development outside of the established airport flight pattern. Adopting the Housing Element, a policy document, does not involve construction or physical design. Therefore, there are no anticipated impacts associated with hazards due to design features or incompatible uses. Adopting the Housing Element, a policy document, does not involve construction or physical design. No implementation measure or policy of the element would result in the construction of residential units that could prevent adequate emergency access. Adopting the Housing Element, does not involve parking as no construction or physical design is proposed as part of the plan. The Housing Element does include programs that could result in changes to City regulations for off-street parking. However, no program or policy of the Housing Element would result in the construction of residential units that could negatively affect parking capacity. None of the policies or implementation measures contained in the updated Housing Element conflict with adopted policies, plans, or programs supporting alternative modes of transportation (e.g., bus turnouts, bicycle racks). a-g: No impacts. 17. Utilities and Service Systems Environmental Setting Water and sewer utilities are provided by the City of Arroyo Grande and the South San Luis Obispo County Sanitation District. Would the project: a) Exceed wastewater treatment restrictions or standards of the applicable Regional Water Quality Control Board? Potentially Significant Impact D Less Than Significant with Mitigation D Less Than Significant No Impact Impact D Page 29 of 33 Item 9.a. - Page 50 INITIAL STUDY/ NEGATIVE DECLARATION Housing Element Update b) Require or result in the construction of new water or wastewater treatment facilities or expansion of existing facilities? Would the construction of these facilities cause significant environmental effects? c) Require or result in the construction of new storm water drainage facilities or expansion of existing facilities? d) Have sufficient water supplies available to serve the project from existing entitlements and resources or are new or expanded entitlements needed? e) Result in a determination, by the wastewater treatment provider that serves or may serve the project, that it has adequate capacity to service the project's anticipated demand, in addition to the provider's existing commitments? f) Be served by a landfill with sufficient permitted capacity to accommodate the project's solid waste disposal needs? g) Comply with federal, state, and local statutes and regulations as they relate to solid waste? Discussion D D D D D D D August 2013 D D D D D D D D D D D D D D Adopting the Housing Element will not by itself cause or exceed wastewater treatment requirements of the Regional Water Quality Control Board. Impact of residential full build-out on wastewater treatment requirements was addressed in the 2001 General Plan EIR. Mitigation measures have been integrated into the General Plan in the form of goals, policies, and implementation measures to reduce all significant impacts to a level of less than significant. Adopting the Housing Element will not by itself require or result in the construction of new stormwater drainage facilities or expansion of existing facilities. As necessary, environmental impacts related to the construction of new facilities will be addressed through additional CEQA analysis and impact fees for site-specific residential projects. A Housing Element is not the type of project that would generate solid waste as the project is a policy document. Impacts related to landfill capacity and solid waste disposal needs resulting from the anticipated population growth of the City were addressed in the 2001 General Plan EIR. Mitigation measures have been integrated into the General Plan in the form of goals, policies, and implementation measures to reduce all significant impacts to a level of less than significant. a-g: No impacts. Page 30 of 33 Item 9.a. - Page 51 INITIAL STUDY/ NEGATIVE DECLARATION Housing Element Update Mandatory Findings of Significance Would the project: a) Substantially degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species; cause a fish or wildlife population to drop below self-sustaining levels; threaten to eliminate a plant or animal community; substantially reduce the number or restrict the range of an endangered, rare or threatened species; or eliminate examples of the major periods of California history or prehistory? b) Have the potential to achieve short-term environmental goals to the disadvantage of long-term environmental goals? c) Have possible environmental effects that are individually limited but cumulatively considerable? "Cumulatively considerable" means that the incremental effects of an individual project are significant when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of possible future projects. d) Cause substantial adverse effects on human beings, either directly or indirectly? Discussion Potentially Significant Impact D D D D August 2013 Less Than Less Than Significant with Significant No Impact Mitigation Impact D D D D D D D D While the Housing Element identifies constraints to the development of new housing and encourages the provision of a range of housing types and affordability levels, as it is a policy-level document, it does not include any site-specific designs or proposals, nor does it grand any entitlements for development that would have the potential to degrade the quality of the environment. Future residential development projects would require compliance with General Plan policies and other City codes and ordinances intended to protect the environment. Therefore, adopting the updated Housing Element will not by itself degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of the major periods of California history or prehistory. The Housing Element is a policy-level document that does not propose any specific development or specify sites for development. Therefore,· identifying or analyzing cumulative impacts would be speculative at this time. Future residential development projects and/or policies would be subject to separate environmental review, including a review of cumulative impacts. As the Housing Element is a policy-level document, it does not include any site-specific designs or proposals, nor does it grant any entitlements for development. Future residential development projects will be required to be reviewed on a project level and will be required to be in compliance with regulations in place at the time of project review and approval. Page 31of33 Item 9.a. - Page 52 -INITIAL STUDY/ NEGATIVE DECLARATION Housing Element Update August 2013 The Housing Element is a multi-year policy document that addresses the State's housing goal of attaining a decent home and suitable living environment for every resident. No aspect of the document, including its implementation measures, has the ability to cause substantial adverse effects on human beings, either directly or indirectly. a-b: No impacts. Page 32 of 33 Item 9.a. - Page 53 INITIAL STUDY/ NEGATIVE DECLARATION Housing Element Update References Documents & Maps 1. Arroyo Grande General Plan 2. Arroyo Grande Municipal Code 3. Arroyo Grande Zoning Map August 2013 4. Arroyo Grande Existing Settings Report & Draft Arroyo Grande Existing Settings Report (2010) 5. Arroyo Grande Urban Water Management Plan 6. Arroyo Grande Stormwater Management Plan 7. San Luis Obispo Important Farmland Map (California Department of Conservation, 2006) 8. CEQA & Climate Change White Paper (CAPCOA, 2008) 9. Air Quality Handbook (SLO APCD, 2012) Page 33 of 33 Item 9.a. - Page 54