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O 622 INTERIM URGENCY ORDINANCE NO. 622 AN INTERIM URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE EXTENDING A MORATORIUM ON THE APPROVAL OF DEVELOPMENT PROJECTS, AND DECLARING THE URGENCY THEREOF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DOES ORDAIN AS FOLLOWS: SECTION 1. FINDINGS. The City Council finds as follows: A. As detailed in the September 8, 2009 staff report to the City Council, a copy of which is on file in the City Clerk's Office and incorporated into this Interim Ordinance as if fully set forth herein, the City of Arroyo Grande ( "City ") is dealing with a critical water shortage while simultaneously pursuing a statutorily required update of the Housing Element and Conservation Element of the City's General Plan. During preparation of the City's 2001 General Plan and 2005 Urban Water Master Plan, the lack of water resources was identified as a significant issue. Since that time the City has conducted studies and made extensive efforts to develop a strategy to address the lack of water resources, including studying and prioritizing alternatives and options for short-term and Tong -term options and supplemental water supplies. B. After it was determined in 2008 that the City had utilized 99% of its water entitlements, the City Council approved Resolution No. 4118 on August 12, 2008 declaring the existence of a "severely restricted water supply condition" and implemented mandatory water conservation measures. C. Among the short-term measures that have been identified to increase water supplies are water conservation public education efforts and implementation and enforcement of water conservation regulations, a tiered water rate structure, installation of Well No. 10, and the City has contracted with the Oceano Community Services District for delivery of water. Long -term measures that have been identified include a comprehensive groundwater study, the Nacimiento Lake water project, a desalination project study, State water, and study of two (2) recycled water projects, the first in cooperation with the South San Luis Obispo County Sanitation District and the second a joint project with the City of Pismo Beach. In addition, the City has been participating in a study of raising the height of the spillway of the Lopez dam to increase the capacity of Lopez Lake. D. Based upon preliminary data resulting from a groundwater monitoring program implemented in early 2009 by a group of cities that include the Cities of Arroyo Grande, Grover Beach, Pismo Beach and the Oceano Community Services District, groundwater levels and water quality sampling have shown early signs of seawater INTERIM URGENCY ORDINANCE NO. 622 PAGE 2 intrusion in the part of the basin from which the City obtains the majority of its groundwater supply. Seawater intrusion can be a serious threat. Seawater is highly saline (with typical chloride concentrations of 19,000 mg /L) and mixing even a small amount, as little as two percent, with fresh groundwater is enough to make water undrinkable. Once seawater has intruded and mixed in a groundwater basin, it is very difficult and costly to remove. While this is preliminary data, and additional evaluation and recommendations from consultants are expected, this new information combined with the severely restricted water supply conditions and related concerns discussed above, create an immediate need to study and understand it's implications in relation to the City's General Plan update and other development proposals, policies and programs. E. The Community Development Department of the City of Arroyo Grande recently initiated the process of updating the City's General Plan, with immediate emphasis on the Housing Element and the Conservation Element; as the Conservation Element provides for the conservation, development and integration of natural resources, this process will enable the City to immediately address the impacts of the water shortage and implications of the seawater intrusion problem on development in the City, including the issue of insufficient water supply in relation to the City's Housing Element, regional housing needs allocation and its affordable housing needs and requirements. F. Due to the foregoing, the City intends to immediately begin a study of issues related to future development and insufficient water supply. In the meantime, if a temporary moratorium on Development Projects is not immediately imposed, pursuant to the provisions of Government Code §65858, such unplanned development would defeat the intent and purpose of the City's General Plan policy of providing for orderly development with sufficient water resources and undermine the update of the City's Housing Element and Conservation Element. G. On November 10, 2009, the City Council adopted Ordinance 615, entitled "An Interim Urgency Ordinance of the City Council of the City of Arroyo Grande Adopting a Moratorium on the Approval of Development Projects, and Declaring the . Urgency Thereof" (the "Temporary Moratorium "), which Ordinance expired forty -five (45) days from the date of its adoption, pursuant to the Government Code Section 65858 (a). H. On December 8, 2009, the City Council held a duly noticed public hearing to consider extending the Temporary Moratorium and after reviewing and considering all available evidence, adopted Ordinance 618 extending the Temporary Moratorium for a period of four (4) months and fifteen (15) days, pursuant to Government Code Section 65858 (a). INTERIM URGENCY ORDINANCE NO. 622 PAGE 3 I. On April 13, 2010, the City Council held a duly noticed public hearing to consider an additional three (3) month extension of the Temporary Moratorium, pursuant to Government Code §65858 to enable completion of studies and analysis of the seawater intrusion problem and its impact on the City's pending updates of the General Plan Housing and Conservation Elements. SECTION 2. ESTABLISHMENT OF MORATORIUM The City Council hereby declares that a continued Temporary on the approval of Development Projects, as defined below ( "Development Projects ") is necessary in order to permit the City the time to complete research and consider appropriate regulations, amendments and /or clarifications to protect the public health, safety, welfare and the economic prosperity of the community. As used herein, "Development Project" means any project undertaken for the purpose of development and includes, but is not limited to any project involving the issuance of a permit for construction or reconstruction. Development Project includes ministerial projects, unless the project does not require a new water connection. SECTION 3. Except as otherwise specified herein, while this Interim Ordinance remains in effect, no permit, or other applicable entitlement, which entails in whole or in part the approval of any new Development Project withih the City shall be approved or issued. SECTION 4. Pursuant to the provisions of California Government Code §65858, this Interim Ordinance is adopted as an Interim urgency zoning ordinance and shall take effect immediately. The facts demonstrating the urgency that form the basis for this Interim Ordinance are set forth in Section 1, above and in addition are as follows: A. The City has and continues to receive applications for Development Projects and expects to continue to receive such application. B. The approval of new Development Projects within the City of Arroyo Grande without an opportunity to study the implications of the current water shortage and seawater intrusion in the Arroyo Grande Groundwater Basin in relation to the City's pending update of certain Elements of the General Plan, regional housing needs allocation, affordable housing needs, pending recreation and other public facility projects, and economic development efforts would result in a threat to orderly development in a fundamental manner. Approval of such projects may conflict with Policy LU11 -3.1 of the City's Fringe and Urban Area Land Use Element, which limits the "number of dwelling units within the City to that which is consistent with the long -term availability of resources needed to support area population and that which public services and facilities can adequately support," and Policy COS6 of the City's Conservation Element which states that "The City of Arroyo Grande shall manage land use and limit its urban development potential to that which can be sustained by the INTERIM URGENCY ORDINANCE NO. 622 PAGE 4 available water resources..." It is thus necessary to establish a temporary moratorium to allow for: (1) research and study to determine how to address these issues, the type of regulation that may be imposed with regard to new connections to the City's water system and how that relates to General Plan policies, regional housing needs allocation and affordable housing needs and related matters, (2) the preparation and presentation of any proposed ordinance, amendments or regulations to address this issue. C. This Interim Ordinance is necessary in order to maintain the City's environment pending the outcome of the above - referenced research, study and analysis, which will dictate the need to establish new policies, procedures and otherwise regulate Development Projects in the City in relation to the water supply problem. D. This Interim Ordinance is necessary so that the City may study the manner in which to comprehensively prioritize needs and balance resources including those pertaining to the provision of affordable housing and state mandated regional housing stock and short and long term water availability. E. It is necessary that this Interim Ordinance remain in effect until the required research, study, and analysis have been completed and the recommendations of Community Development Department staff can be received and considered by the City Council and the City Council. SECTION 5. The City Council therefore finds that, based upon the foregoing, there is a current and immediate threat to the public health, safety and welfare, and that the approval of additional Development Projects through the issuance of approvals or permits would result in a threat to, the public health, safety and welfare. SECTION 6. Any Development Project currently being processed by the City and for which the City has accepted or deemed an application as complete prior to the effective date hereof, any Development Project with a significant component of multifamily housing, and any City initiated public safety project, shall be exempt from the provisions of this Interim Ordinance. SECTION 7. The term of this Interim Ordinance shall commence on April 22, 2010 and shall expire on July 21, 2010 or at such earlier time as the City Council acts to repeal this Interim Ordinance. SECTION 9. In accordance with the requirement of Government Code §65858, at least ten (10) days prior to the expiration period provided for in Section 8, the City Council shall issue a written report describing any measures taken to alleviate those conditions herein referenced which led to the adoption of this Interim Ordinance. SECTION 10. Within fifteen (15) days after its passage, this Ordinance shall be published once, together with the names of the Council members voting thereon, in a newspaper of general circulation within the City. INTERIM URGENCY ORDINANCE NO. 622 PAGE 5 SECTION 11. The adoption of this Interim Ordinance is exempt from the California Environmental Quality Act ( "CEQA ") pursuant to § §15061(b)(3)and 15306 of the State CEQA Guidelines because it can be seen with certainty that there is no possibility that such adoption may have a significant effect on the environment. In addition, the adoption of this Interim Ordinance . is exempt from CEQA pursuant to §15262 of the CEQA Guidelines in that this Interim Ordinance involves only feasibility or planning studies for possible future actions by the City. SECTION 12. This Interim Ordinance shall be liberally construed to accomplish its intended purposes. Nothing contained in this Interim Ordinance is intended to limit the continuation of lawful nonconforming uses or structures. SECTION 13. The City Council hereby declares that should any section, paragraph, sentence, phrase, term, or word of this Interim Ordinance hereby adopted be declared for any reason to be invalid, it is the intent of the City Council that it would have adopted all other portions of this Interim Ordinance irrespective of any such portion declared invalid. On motion by Council Member Costello, seconded by Council Member Guthrie, and by the following roll call vote, to wit: AYES: Council Members Costello, Guthrie, Fellows, and Mayor Ferrara NOES: None ABSENT: Arnold the foregoing Interim Urgency Ordinance was adopted this 13 day of April 2010. INTERIM URGENCY ORDINANCE NO. 622 PAGE 6 TONY FER AYOR ATTEST 6Q- KELLY T �RE, CITY CLERK APPROVED AS TO CONTENT: E ADAMS, CITY MANAGER APPROVED AS TO FORM: VC,L.CARMA TI TH EL, CITY ATTORNEY OFFICIAL CERTIFICATION I, KELLY WETMORE, City Clerk of the City of Arroyo Grande, County of San Luis Obispo, State of California, do hereby certify under penalty of perjury, that the attached is a true, full, and correct copy of Interim Urgency Ordinance No. 622 which was adopted at a regular meeting of the City Council/Redevelopment Agency on April 10, 2010; and was duly published in accordance with State law (G.C. 40806). WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 14 day of April 2010. n KELLY CITY CLERK