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Agenda Package - PC_Aug16_2022PLANNING COMMISSION MEETING AGENDA Tuesday, August 16, 2022, 6:00 p.m. Hybrid City Council Chamber/Virtual Zoom Meeting 215 East Branch Street, Arroyo Grande Please click the link below to join the Zoom Meeting: https://us02web.zoom.us/j/83255848846 Webinar ID: 832 5584 8846 Or by Telephone: 1-669-900-6833; 1-346-248-7799 Given the recent increase in COVID-19 cases in San Luis Obispo County, and in compliance with Assembly Bill (AB) 361, which allows for a deviation of teleconference rules required by the Ralph M. Brown Act, Planning Commission meetings will be conducted by video/teleconferencing through Zoom Webinar until further notice. Meetings will be broadcast live on Channel 20 and streamed on the City’s website and www.slo- span.org. Members of the public may participate and provide public comment on agenda items during the meeting by joining the Zoom meeting or by submitting written public comments to the Clerk of the Commission at pc-publiccomment@arroyogrande.org. 1.CALL TO ORDER 2.ROLL CALL 3.FLAG SALUTE Vice Chair Maraviglia 4.AGENDA REVIEW The Commission may revise the order of agenda items depending on public interest and/or special presentations. 5.COMMUNITY COMMENTS AND SUGGESTIONS This public comment period is an invitation to members of the community to present issues, thoughts, or suggestions on matters not scheduled on this agenda. Comments should be limited to those matters that are within the jurisdiction of the Planning Commission. Members of the public may provide public comment remotely by joining the Zoom meeting utilizing one of the methods provided below. Please use the “raise hand” feature to indicate your desire to provide public comment. Click the link below to join the webinar: • https://us02web.zoom.us/j/89129208197; Webinar ID: 891 2920 8197 • Or Telephone Attendee: 1-669-900-6833; 1-346-248-7799; 1-253-215-8782; Press * 9 to “raise hand” for public comment The Brown Act restricts the Commission from taking formal action on matters not published on the agenda. In response to your comments, the Chair or presiding official may: • Direct City staff to assist or coordinate with you. • A Commissioner may state a desire to meet with you. • It may be the desire of the Commission to place your issue or matter on a future agenda. Please adhere to the following procedures when addressing the Commission: • Comments should be limited to 3 minutes or less. • Your comments should be directed to the Commission as a whole and not directed to an individual Commissioner. • Slanderous, profane or personal remarks against any Commissioner or member of the audience shall not be permitted. 6.WRITTEN COMMUNICATIONS Correspondence or supplemental information for the Planning Commission received after Agenda preparation. In compliance with the Brown Act, the Commission will not take action on correspondence relating to items that are not listed on the Agenda, but may schedule such matters for discussion or hearing as part of future agenda consideration. 7.CONSENT AGENDA 7.a.Approval of Minutes (HOLUB) Recommended Action: Approve the Minutes of the June 7, 2022 Regular Meeting 7.b.Approval of Minutes (HOLUB) Recommended Action: Approve the Minutes of the August 2, 2022 Regular Meeting. 8.PUBLIC HEARINGS 8.a.Consideration Of Amendments To Title 16 Of The Arroyo Grande Municipal Code (AGMC) Regarding Accessory Dwelling Units; Development Code Amendment 20-001; Location – Citywide (PEREZ) Recommended Action: It is recommended that the Planning Commission adopt a Resolution recommending the City Council adopt amendments to the accessory dwelling unit ordinance. 8.b.Consideration of Development Code Amendment 22-003 Regarding a Permanent Parklet Program (HOLUB) Recommended Action: It is recommended that the Planning Commission continue the public hearing to a date certain of September 6, 2022 to allow staff additional time to draft the proposed ordinance and incorporate feedback from the Architectural Review Committee regarding the recommended amendments to the performance standards. 9.NON-PUBLIC HEARING ITEMS None. 10.NOTICE OF ADMINISTRATIVE ITEMS SINCE AUGUST 2, 2022 ITEM NO. 1: Temporary Use Permit 22-005; Calvary Church Concert On August 20th, 2022 From Page 2 of 40 12:00pm To 7:00pm; Location – Heritage Square Park, 207 Nelson Street; Applicant – Patricia Brown, Calvary Church After making the findings specified in Section 16.16.090 of the Municipal Code, the Community Development Director approved the above referenced project for a concert at Heritage Square Park in the Public Facility (PF) zoning district on August 20th, 2022 from 12:00pm until 7:00pm. The deadline to appeal this project is at 5:00 pm on August 22, 2022. ITEM NO. 2: Plot Plan Review 21-050; Establishment Of A Vacation Rental In A Multi-Family Residence; Location – 157 Clarence Avenue, Unit A; Applicant – Abby Boulton After making the findings specified in Section 16.16.080 of the Municipal Code, the Community Development Director approved the above referenced project for the establishment of a Vacation Rental in the Multi-Family (MF) zoning district. The deadline to appeal this project is at 5:00 pm on August 22, 2022. ITEM NO. 3: Plot Plan Review 22-031; Establishment Of A Homestay In A Single Family Residence; Location – 506 Ide Street; Applicant – Samantha Engleman After making the findings specified in Section 16.16.080 of the Municipal Code, the Community Development Director approved the above referenced project for the establishment of a Vacation Rental in the Single Family (SF) zoning district. The deadline to appeal this project is at 5:00 pm on August 22, 2022. ITEM NO. 4: Plot Plan Review 22-033; Establishment Of A Homestay In An Existing Single Family Residence; Location – 541 Ide Street; Applicant – Samantha Engleman After making the findings specified in Section 16.16.080 of the Municipal Code, the Community Development Director approved the above referenced project for the establishment of a Homestay in the Single Family (SF) zoning district. The deadline to appeal this project is at 5:00 pm on August 22, 2022. ITEM NO. 5: Plot Plan Review 22-032; Establishment Of A Vacation Rental In An Existing Single Family Residence; Location – 528 Ide Street; Applicant – Samantha Engleman After making the findings specified in Section 16.16.080 of the Municipal Code, the Community Development Director approved the above referenced project for the establishment of a Vacation Rental in the Single Family (SF) zoning district. The deadline to appeal this project is at 5:00 pm on August 22, 2022. ITEM NO. 6: Plot Plan Review 22-015; Establishment Of A Homestay In An Existing Single Family Residence; Location – 1165 Sunset Drive; Applicant – Porsha Ashley Page 3 of 40 After making the findings specified in Section 16.16.080 of the Municipal Code, the Community Development Director approved the above referenced project for the establishment of a Homestay in the Single Family (SF) zoning district. The deadline to appeal this project is at 5:00 pm on August 22, 2022. ITEM NO. 7: Architectural Review 22-007; Exterior Alterations To An Existing Residence; Location – 121 Nelson St; Applicant – Billy Kilmer; Representative – Jennifer Martin After making the findings specified in Section 16.16.130 of the Municipal Code, the Community Development Director approved the above referenced project for alterations to an existing single family residence in the Village Mixed-Use (VMU) zoning district. The deadline to appeal this project is at 5:00 pm on August 17, 2022. 11.COMMISSION COMMUNICATIONS Correspondence/Comments as presented by the Planning Commission. 12.STAFF COMMUNICATIONS Correspondence/Comments as presented by the City Manager. 13.ADJOURNMENT All staff reports or other written documentation, including any supplemental material distributed to a majority of the Planning Commission within 72 hours of a regular meeting, relating to each item of business on the agenda are available for public inspection during regular business hours in the City Clerk’s office, 300 E. Branch Street, Arroyo Grande. If requested, the agenda shall be made available in appropriate alternative formats to persons with a disability, as required by the Americans with Disabilities Act. To make a request for disability-related modification or accommodation, contact the Legislative and Information Services Department at 805-473-5400 as soon as possible and at least 48 hours prior to the meeting date. This agenda was prepared and posted pursuant to Government Code Section 54954.2 Agenda reports can be accessed and downloaded from the City’s website at www.arroyogrande.org If you would like to subscribe to receive email or text message notifications when agendas are posted, you can sign up online through the “Notify Me” feature. Planning Commission Meetings are cablecast live and videotaped for replay on Arroyo Grande’s Government Access Channel 20. The rebroadcast schedule is published at www.slo-span.org. Page 4 of 40 1 ACTION MINUTES MEETING OF THE PLANNING COMMISSION June 7, 2022, 6:00 p.m. Hybrid City Council Chamber/Virtual Zoom Meeting 215 East Branch Street, Arroyo Grande Commission Members Present: Chair Glenn Martin, Commissioner Frank Schiro, Vice Chair Jamie Maraviglia, Kevin Buchanan Commission Members Absent: Commissioner Jim Guthrie Staff Present: Planning Manager Andrew Perez, Community Development Director Brian Pedrotti Given the recent increase in COVID-19 cases in San Luis Obispo County, and in compliance with Assembly Bill (AB) 361, which allows for a deviation of teleconference rules required by the Ralph M. Brown Act, this meeting was held by teleconference. _____________________________________________________________________ 1.CALL TO ORDER Chair Martin called the Planning Commission meeting to order at 6:00pm. 2.ROLL CALL Chair Martin performed the roll call. Commissioner Guthrie was absent. 3.F LAG SALUTE Vice Chair Maraviglia led the flag salute. 4.AGENDA REVIEW None. 5.COMMUNITY COMMENTS AND SUGGESTIONS None. 6.WRITTEN COMMUNICATIONS None. 7.CONSENT AGENDA Moved by Commissioner Schiro Seconded by Vice Chair Maraviglia ATTACHMENT 1 Page 5 of 40 2 Approve Consent Agenda Items 7.a and 7.b., with the recommended courses of action. AYES (4): Chair Martin, Commissioner Schiro, Vice Chair Maraviglia, and Kevin Buchanan ABSENT (1): Commissioner Guthrie Passed (4 to 0) 7.a Approval of Minutes (HOLUB) 7.b Proposed Street Names for Creekside Mixed-Use Development; Location – 415 E. Branch St; Applicant – DB&M Properties (PEREZ) 8. PUBLIC HEARINGS None. 9. NON-PUBLIC HEARING ITEMS 9.a Consideration of a Capital Improvement Program for Fiscal Years 2022-23 through 2026- 27 Consistent with General Plan (HOLUB) Planning Manager Perez presented the staff report and explained the purpose of the discussion and answered questions about specific items as they relate to the General Plan. The Planning Commission appreciated the City's strategy with regards to the Pavement Management Program. The Commission directed staff to investigate the purpose of the Public Safety Video Cameras and report back at the next meeting. Moved by Chair Martin Seconded by Commissioner Schiro Adopt a Resolution finding that the Capital Improvement Program is consistent with the General Plan. AYES (4): Chair Martin, Commissioner Schiro, Vice Chair Maraviglia, and Kevin Buchanan ABSENT (1): Commissioner Guthrie Passed (4 to 0) 10. NOTICE OF ADMINISTRATIVE ITEMS SINCE MAY 17, 2022 Received. 11. COMMISSION COMMUNICATIONS None. Page 6 of 40 3 12. STAFF COMMUNICATIONS Director Pedrotti announced that an application for grant funding for the Brisco Intersection project was submitted to the State by staff. Director Pedrotti summarized City Council's discussion about the SB 9 Ordinance and its direction to staff. 13. ADJOURNMENT The Meeting adjourned at 6:39pm. _________________________ Patrick Holub Assistant Planner _________________________ Glenn Martin, Chair Page 7 of 40 1 ACTION MINUTES MEETING OF THE PLANNING COMMISSION August 2, 2022, 6:00 p.m. Hybrid City Council Chamber/Virtual Zoom Meeting 215 East Branch Street, Arroyo Grande Commission Members Present: Chair Glenn Martin, Commissioner Jim Guthrie, Kevin Buchanan Commission Members Absent: Commissioner Frank Schiro, Vice Chair Jamie Maraviglia Staff Present: Planning Manager Andrew Perez, Associate Planner Patrick Holub, Community Development Director Brian Pedrotti Given the recent increase in COVID-19 cases in San Luis Obispo County, and in compliance with Assembly Bill (AB) 361, which allows for a deviation of teleconference rules required by the Ralph M. Brown Act, this meeting was held by teleconference. _____________________________________________________________________ 1. CALL TO ORDER Chair Martin called the Planning Commission meeting to order at 6:01pm. 2. ROLL CALL Commissioner Schiro and Vice Chair Maraviglia were absent. 3. FLAG SALUTE Chair Martin 4. AGENDA REVIEW None. 5. COMMUNITY COMMENTS AND SUGGESTIONS April, Oceano, spoke about the importance of regulating short term rentals and mentioned that the Oceano Advisory Council would be meeting at 6:00pm on August 20th in-person and August 22nd on Zoom to discuss short term rental regulations in Oceano. 6. WRITTEN COMMUNICATIONS None. Page 8 of 40 2 7. CONSENT AGENDA 7.a Approval of Minutes (HOLUB) This item was continued due to a lack of a quorum of Planning Commissioners in attendance at the June 7, 2022 meeting. 7.b Consideration of Lot Line Adjustment 22-002; Location – 718 Cornwall Avenue; Applicant – Hunstad Homes, Kevin Hunstad (HOLUB) Moved by Chair Martin Seconded by Commissioner Guthrie Passed 8. PUBLIC HEARINGS 8.a Consideration of Draft Initial Study/Mitigated Negative Declaration for the Traffic Way Bridge Replacement Project (PEREZ) Community Development Director Brian Pedrotti provided an introduction and introduced City Engineer Robin Dickerson. City Engineer Dickerson provided a presentation and introduced consultant, Cassidy Williams, from SWCA Environmental Consultants. Cassidy Williams, consultant, continued the presentation. Due to technical issues, Chair Martin called for a break at 6:19pm. The Commission reconvened at 6:29pm. Community Development Director Pedrotti, City Engineer Dickerson and consultant Williams responded to Commissioner questions regarding detour routes during construction, evaluation of additional air quality impacts related to the detour, lane configuration and anticipated traffic impacts at the US Highway 101 off ramps near the project. Chair Martin opened the public hearing. Hearing no public comments, Chair Martin closed the public hearing. Moved by Chair Martin Seconded by Commissioner Guthrie Chair Martin moved and Commissioner Guthrie seconded a motion to adopt a Resolution recommending that the City Council adopt the Initial Study / Mitigated Negative Declaration for the Traffic Way Bridge Replacement Project with the following change: "Additional review and analysis of safety issues related to traffic calming mitigation shall be conducted." Page 9 of 40 3 Passed 8.b Discuss and Consider Amendments to Short Term Rental Ordinance (HOLUB) Associate Planner Patrick Holub presented the staff report and responded to Commissioner questions regarding enforcement, current procedures and capabilities expressed by respondents to the City's Request for Proposals for short term rental host compliance services. Chair Martin opened the public hearing. Peggy Coon, Ide Street, spoke about the City's short term rental regulations and made a number of recommendations for changes to the ordinance. Elizabeth Bartow spoke about issues with the City's current regulations. April, Oceano, spoke about short term rental impacts on available housing and suggested an expiration clause. Due to technical issues, Chair Martin called for a break at 7:45pm. The Commission reconvened at 8:00pm. Jami Fordyce spoke about concerns related to short term rentals and the experience of living next door to an approved rental. She also spoke about concerns related to an approval being reported under agenda item #10. Matt Coward spoke about the existing short term rental regulations and expressed a desire to have the buffer distance between rentals reduced. Michelle Chariton spoke about the impacts related to short term rentals and advocated for the buffer distance to apply near schools. Hearing no further comment, Chair Martin closed the public hearing. Chair Martin moved and Commissioner Guthrie seconded a motion to continue the meeting past 10:00pm until 10:30pm. The motion passed 3-0-2. Chair Martin moved and Commissioner Guthrie seconded a motion to continue the meeting an additional fifteen minutes until 10:45pm. Moved by Chair Martin Seconded by Commissioner Guthrie Chair Martin moved and Commissioner Guthrie seconded a motion to adopt a Resolution recommending the City Council adopt an Ordinance revising the City's short term rental regulations with the following changes: 1) Implement a cap on vacation rentals of 120. 2) Increase the buffer between short term rentals of all kinds to 500 feet and provide a buffer from all schools of 500 feet. Page 10 of 40 4 3) Initiate revocation procedures if a designated emergency contact is unresponsive three times or if a citation is issued by the Police Department. 4) Require that short term rental permits expire at the point of sale of the property. 5) Incorporate the same new performance standards for homestays as vacation rentals. 6) Require that any unit previous occupied by a long term renter within the past year be ineligible to become a short term rental. 7) Provide two parking spaces off-street for all short term rentals. The parking spaces can be covered or uncovered. Passed 9. NON-PUBLIC HEARING ITEMS None. 10. NOTICE OF ADMINISTRATIVE ITEMS SINCE JUNE 7, 2022 Received. Commissioner Guthrie moved and Chair Martin seconded a motion to appeal the approval of the vacation rental at 1136 East Grand Avenue due to the public's stated concerns regarding the contact phone number of the listed emergency contact. The motion passed 3-0-2. April, Oceano, spoke about issues related to public comment on administrative approvals. Jami Fordyce spoke about issues related to the process. Commissioner Guthrie moved and Chair Martin seconded a motion to extend the meeting an additional five minutes until 10:50pm. Michelle Chariton spoke about issues related to the approval process. 11. COMMISSION COMMUNICATIONS None. 12. STAFF COMMUNICATIONS None. 13. ADJOURNMENT The Meeting adjourned at 10:48pm. _________________________ Glen Martin, Chair Page 11 of 40 5 _________________________ Patrick Holub, Associate Planner Page 12 of 40 MEMORANDUM TO: Planning Commission FROM: Brian Pedrotti, Community Development Director BY: Andrew Perez, Planning Manager SUBJECT: Consideration Of Amendments To Title 16 Of The Arroyo Grande Municipal Code (AGMC) Regarding Accessory Dwelling Units; Development Code Amendment 20-001; Location – Citywide DATE: August 16, 2022 SUMMARY OF ACTION: A recommendation to City Council to adopt amendments to the accessory dwelling unit ordinance and submit to the State Department of Housing and Community Development for review. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: SB 2 grant funding in the amount of $20,000 was obtained to offset costs associated with the amendments to the ADU regulations, including staffing hours, website development, and marketing materials. RECOMMENDATION: It is recommended that the Planning Commission adopt a Resolution recommending the City Council adopt amendments to the accessory dwelling unit ordinance (Attachment 1). BACKGROUND: The state legislature has identified production of Accessory Dwelling Units (ADUs) as an important strategy to increase housing statewide. In 2017, the state made significant changes to the manner by which local governments can regulate ADUs, primarily with respect to parking, types and sizes of ADUs, approval process and timelines, and utility fees. In response, the City adopted Ordinance 688 in October 2017, bringing local regulations consistent with 2017 state law at that time. While state legislators acknowledged that the ADU permitting process was significantly streamlined as a result of the 2017 legislation, some were concerned that local jurisdictions’ regulations, such as unit size maximums and impact fees, continued to impede property owners from constructing ADUs. As a result, in October 2019, Governor Page 13 of 40 Planning Commission Consideration Of Amendments To Title 16 Of The Arroyo Grande Municipal Code (AGMC) Regarding Accessory Dwelling Units; Development Code Amendment 20-001; Location – Citywide August 16, 2022 Page 2 Newsom signed new state housing bills that further amended Government Code §65852.2 and §65852.22 related to regulations for development of ADUs. Therefore, Title 16 must be amended again for consistency with state law. On consecutive meetings in August 2021, staff presented the draft Ordinance to the Planning Commission, which included provisions for both ADUs and Tiny Homes on Wheels (THOW). Staff modified the ordinance as suggested by the Planning Commission and introduced amendments to the ADU ordinance to Council on February 8, 2022 (Attachment 2). At that hearing, Council directed staff to revise the draft ordinance and conduct follow-up or additional research as follows: 1) Separate standards for THOW from the ADU ordinance; 2) Develop objective design standards to ensure detached ADUs resemble the primary unit; 3) Add a prohibition of rooftop decks for detached ADUs; 4) Evaluate the feasibility of a fee waiver program; 5) Explore a pre-fabricated ADU program; 6) Modify the allowed locations to prohibit ADUs in the front yard; and 7) Develop incentives for installation of solar panels on ADUs. ANALYSIS OF ISSUES: At a study session with City Council on July 26, 2022 staff presented revisions to the ordinance in response to the comments from the February 8, 2022 Council meeting (Attachment 3). 1. Tiny Homes on Wheels (THOW) All development standards for THOW have been removed from consideration and will be presented for further consideration by the City Council at a future meeting. Council directed staff to return for a study session in the near future, but the date of that meeting has not yet been determined. 2. Objective Design Standards State law allows agencies to develop objective design and development standards for ADUs that include, but are not limited to, parking, height, setback s, landscape, architectural review, maximum size of a unit, and standards that prevent adverse impacts on any real property that is listed in the California Register of Historic Resources. However, these standards must be sufficiently objective to allow ministerial review of an ADU. Objective standards are those that involve no personal or subjective judgment by a public official and are uniformly verifiable. During its discussion of the ADU ordinance on February 8, 2022, Council directed staff to develop objective design standards to make ADUs compatible with existing residential Page 14 of 40 Planning Commission Consideration Of Amendments To Title 16 Of The Arroyo Grande Municipal Code (AGMC) Regarding Accessory Dwelling Units; Development Code Amendment 20-001; Location – Citywide August 16, 2022 Page 3 development on the property on which they are constructed. These standards require design considerations for new detached ADUs such as matching colors to the primary dwelling and requiring all ADUs to adhere to these standards if located in the front yard. Garage conversions to ADUs require that the garage door opening shall be replaced with exterior wall coverings, or residential windows and doors, to match the existing exterior garage wall covering and detailing. While objective design standards are proposed in the draft ordinance, certain “By-Right” ADUs may not be subject to design standards. For example, an agency cannot apply design and development standards to ADUs created under subdivision (e) of Government Code 65852.2. This section regulates ADUs created through:  Conversion of space within an existing single-family dwelling, new construction ADUs;  New construction ADU that does not exceed four-foot side and rear setbacks and a height limitation of 16 feet;  Conversion of existing non-habitable space within multifamily structures; and  Construction of up to two detached ADUs on lots developed with existing multifamily dwellings, subject to four-foot side and rear setbacks, and a 16-foot height limit. Additionally, the regional pre-approved ADU plan program will provide ADU plans of six different sizes ranging from approximately 300-1,200 square feet, and four different architectural themes. Due to the regional nature of the program, not all of the architectural styles may be compatible with every homeowner’s existing residence. Imposing design standards that require the same cladding and colors as the primary unit is likely to discourage use of the pre-approved plans, which are intended to provide property owners an avenue to construct an ADU with reduced costs associated with planning and design. For example, the predominant siding material for each of the architectural styles in the draft pre-approved ADU plans are either horizontal or vertical siding, whereas stucco is the predominant siding material for most residential buildings in the City. Council also encouraged pre-fabricated units as another option for property owner to add an ADU at reduced costs. While these units are a viable option for ADU creation, they are less customizable than a traditionally built unit. The nature of pre-fabricated units makes them less likely to be compatible with an existing primary unit and make compliance with the proposed objective design standards difficult and impractical. Therefore, although their application will be limited somewhat, staff recommends that objective design standards be included in the Ordinance for those ADUs that are not “By-Right” and for ADUs proposed in the front yard (see discussion on ADUs in front yards below). Additionally, staff recommends that the objective design standards apply to new ADUs within the historic Village overlay district. The Design Guidelines and Standards for the Page 15 of 40 Planning Commission Consideration Of Amendments To Title 16 Of The Arroyo Grande Municipal Code (AGMC) Regarding Accessory Dwelling Units; Development Code Amendment 20-001; Location – Citywide August 16, 2022 Page 4 Historic Character Overlay District (D-2.4) also contain a number of standards that are objective in nature, which staff has included in the draft ordinance, as follows: Building Design:  Second floor living area shall be setback 5 feet from ground floor footprint . Construction Materials:  Window sashes and doorframes shall be made of wood or vinyl that looks like wood. Unfinished aluminum is not allowed.  New or replacement doors shall be wood or an approved substitute material that simulates the appearance of original materials. Colors:  The use of fluorescent “neon”, “day-glo”, or bright primary colors as the predominant shade on building facades is not permitted. 3. Prohibition of Rooftop Decks A prohibition of rooftop decks on detached ADUs is now included in Section D of the draft Ordinance. 4. Fee Waiver Program Council also directed staff to consider a program that would waive all fees associated with permitting and construction of ADUs proposed to be less than 500 square feet, to further encourage and incentivize creation of units that will be affordable for low-income households. Council supported staff’s proposal for a fee waiver program that would waive permit processing fees for ADUs in exchange for an agreement that the unit will be rented to lower income households for a period of 10 years. The affordability restriction would be recorded against the title of the property, and monitored by staff annually to ensure compliance. The use of a deed restriction as a mechanism to ensure affordability is similar to the process by which affordable units established through c onditions of approval for larger housing developments are managed. This program is not codified, but rather implemented through a policy adopted by Council. The program will transfer money from the Inclusionary Affordable Housing Trust Fund (Trust Fund) to recoup the loss of revenue associated with waiving fees for plan review, inspections, and utility connection fees, if otherwise applicable to the new units. Pursuant to Arroyo Grande Municipal Code Section 16.80, the sole purpose of Trust Fund is to increase the supply of affordable housing units. The Trust Fund is administered under the supervision of the Community Development Director and funds may be used to offset the costs of producing affordable units, including permitting costs. Providing financial assistance for the creation of affordable units is consistent with Housing Element programs A.3-1, A.3-2, A-3.3, and C.1-1 related to the development of affordable housing. Offsetting revenue losses created by a fee waiver program with funding from Trust Fund will enable the City, in certain situations like this where there is a clear nexus to affordable Page 16 of 40 Planning Commission Consideration Of Amendments To Title 16 Of The Arroyo Grande Municipal Code (AGMC) Regarding Accessory Dwelling Units; Development Code Amendment 20-001; Location – Citywide August 16, 2022 Page 5 housing, to provide financial assistance for new low-income housing without impacting other City services or permit applicants. Council discussed the potential implications to the Trust Fund as a result of this program. Council directed staff to provide an annual report of the status of the program as it relates to the Trust Fund, rather than establishing a limit to the funding that would be dedicated to this program. 5. Pre-fabricated ADU Program Council also directed staff to amend the ordinance to allow pre-fabricated units to serve as ADUs. The draft ordinance now specifically identifies that factory-built housing (FBH) is allowed as a type of ADU. The State Department of Housing and Community Development (HCD) defines FBH as “residential structures manufactured wholly or partially offsite, in sections, or in building components which are assembled at the installation site to form part of or most of a completed unit.” Laws and regulations require the manufacturer to obtain the services of HCD-approved third-party design approval and inspection approval entities, and to document methods of quality control. Compliance with the rules and regulations for FBH is demonstrated through the placement of an HCD “Insignia of Approval” on each unit. State law establishes that the permitting jurisdiction must verify the presence of the HCD Insignia of Approval and inspect the installation of the unit when FBH is proposed. The Building Official may not require review of any FBH plans, require alterations to an approved FBH, or charge plan check fees when plans have already been approved by HCD or an HCD-approved third party reviewer. Allowing FBH as ADUs could accelerate ADU development due to reduced plan review time and costs. 6. Restriction on Front Yard ADUs Under current State law, an agency may apply front yard setbacks for ADUs, but front yard setbacks cannot preclude a by-right ADU and must not unduly constrain the creation of all types of ADUs. Therefore, an outright prohibition of ADUs in the front setback is not proposed in the attached draft Ordinance. However, Section D of the draft ordinance clarifies that ADUs shall only be permitted in the front yard if no feasible alternative exists. The proposed Ordinance further explains that feasibility is determined as whether a By- Right ADU, as described in Section D of the draft ordinance, can physically be constructed behind the primary dwelling. If a by-right ADU can be constructed behind the primary dwelling, the ADU cannot be located in the front yard setback. Due to the potential for ADUs in the front yard setback to be more visually prominent, the draft ordinance also clarifies in Section D that these ADUs will be subject to the Objective Design Standards. 7. Research Regarding Incentives for Solar Installations Newly constructed ADUs are subject to the Energy Code, which requires newly constructed, non-manufactured, detached ADUs to install solar panels. The California Energy Commission ruled that solar panels can be installed on the ADU or on the primary dwelling unit to satisfy this requirement. ADUs established through the conversion of Page 17 of 40 Planning Commission Consideration Of Amendments To Title 16 Of The Arroyo Grande Municipal Code (AGMC) Regarding Accessory Dwelling Units; Development Code Amendment 20-001; Location – Citywide August 16, 2022 Page 6 existing space, whether attached or detached from the primary dwelling unit, or as an addition to an existing dwelling unit, are not subject to the Energy Code requirement to provide solar panels. Construction documents being developed for the regional pre - approved ADU program will include the option to include solar panels. Federal tax credits are available for solar installations as one incentive that already exists. Since sola r panels are already required, the proposed Ordinance does not include additional provisions relating to solar installations in light of these existing regulations. Next Steps A recommendation from the Planning Commission will allow for an introduction of the draft ordinance to Council at the September 13, 2022 meeting and adoption at the following meeting. Regulations for THOW will return to Council at a separate study session before returning to Planning Commission for a recommendation hearing. ALTERNATIVES: The following alternatives are provided for the Planning Commission’s consideration: 1. Adopt a Resolution recommending that Council adopt the amendments to the ADU Ordinance; or 2. Modify and adopt a Resolution recommending that Council adopt the amendments to the ADU Ordinance; or 3. Provide other direction to staff. ADVANTAGES: Amendments to the Ordinance are in compliance with State law and address specific concerns expressed by Council. Updating the ADU ordinance and implementing a fee waiver program will accomplish Housing Element Programs A.2 -1 and A.3-3, respectively. DISADVANTAGES: None identified. ENVIRONMENTAL REVIEW: In compliance with the California Environmental Quality Act (CEQA), the Community Development Department has determined that the project is statutorily exempt per Section 15282(h) of the CEQA Guidelines regarding projects involving the adoption of an ordinance regarding second units in a single-family or multi-family residential zone by a city to implement Government Code Section 65852.2. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. Page 18 of 40 Planning Commission Consideration Of Amendments To Title 16 Of The Arroyo Grande Municipal Code (AGMC) Regarding Accessory Dwelling Units; Development Code Amendment 20-001; Location – Citywide August 16, 2022 Page 7 Attachments: 1. Resolution 2. Minutes from the February 8, 2022 City Council meeting 3. Minutes from the July 26, 2022 City Council meeting Page 19 of 40 ATTACHMENT 1 RESOLUTION NO. A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ARROYO GRANDE RECOMMENDING THE CITY COUNCIL ADOPT ORDINANCES APPROVING DEVELOPMENT CODE AMENDMENT NO. 20-001; AMENDMENTS TO TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE (AGMC) REGARDING ACCESSORY DWELLING UNITS; LOCATION- CITYWIDE WHEREAS, Section 16.52.150 of the Arroyo Grande Municipal Code (AGMC) contains the City’s existing regulations for Accessory Dwelling Units (ADUs); and WHEREAS, AGMC Section 16.52.150 of the Arroyo Grande Municipal was last amended in 2017, after the State legislature had amended Government Code §65852.2 and also added Government Code §65852.22 to provide an option for Junior Accessory Dwelling Units (JADUs), however, the 2017 amendment to AGMC 16.52.150 did not include an option for JADUs at that time; and WHEREAS, in 2019, the California Legislature approved, and the Governor signed into law a number of bills ("New ADU Laws") that, among other things, amended Government Code Section 65852.2 and 65852.22 to impose new limits on local authority to regulate ADUs and JADUs; and WHEREAS, the New ADU Laws mandate that cities with accessory dwelling unit ordinances that are inconsistent with the State laws apply the State standards for ADU and JADU approval; and WHEREAS, according to the State Department of Housing and Community Development website the New ADU Laws were adopted to promote the development of ADUs and JADUs, and include allowing ADUs and JADUs to be built concurrently with a single-family dwelling, opening areas where ADUs can be created to include all zoning districts that allow single-family and multifamily uses, modifying fees from utilities such as special districts and water corporations, limited exemptions or reductions in impact fees, and reduced parking requirements; and WHEREAS, the New ADU Laws took effect January 1, 2020, and because the City's ADU ordinance did not comply with the New ADU Laws, the City's ordinance became null and void on that date as a matter of law; and WHEREAS, the City desires to amend its local regulatory scheme for the construction of ADUs and provide for JADUs and to comply with the amended provisions of Government Code sections 65852.2 and 65852.22; and WHEREAS, the City of Arroyo Grande has duly initiated amendments to AGMC Page 20 of 40 RESOLUTION NO. PAGE 2 Sections 16.52.150; and WHEREAS, the Planning Commission of the City of Arroyo Grande, after giving notices thereof as required by law, held a public hearing on August 16, 2022 concerning this code amendment and carefully considered all pertinent testimony and the staff report offered in the case as presented; and NOW, THEREFORE, BE IT RESOLVED that the Planning Commission of the City of Arroyo Grande hereby recommends the City Council adopt Ordinances approving Development Code Amendment 20-001 amending Title 16 of the Arroyo Grande Municipal Code as attached hereto as Exhibit “A” and incorporated herein by this reference. On motion by Commissioner ________, seconded by Commissioner _______, and by the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was adopted this 16th day of August, 2022. Page 21 of 40 RESOLUTION NO. PAGE 3 _______________________________ GLENN MARTIN CHAIR ATTEST: _______________________________ PATRICK HOLUB SECRETARY TO THE COMMISSION AS TO CONTENT: _______________________________ BRIAN PEDROTTI COMMUNITY DEVELOPMENT DIRECTOR Page 22 of 40 RESOLUTION NO. PAGE 4 EXHIBIT ‘A’ WHEREAS, Section 16.52.150 of the Arroyo Grande Municipal Code (AGMC) contains the City’s existing regulations for Accessory Dwelling Units (ADUs); and WHEREAS, AGMC Section 16.52.150 of the Arroyo Grande Municipal was last amended in 2017, after the State legislature had amended Government Code §65852.2 and also added Government Code §65852.22 to provide an option for Junior Accessory Dwelling Units (JADUs), however, the 2017 amendment to AGMC 16.52.150 did not include an option for JADUs at that time; and WHEREAS, in 2019, the California Legislature approved, and the Governor signed into law a number of bills ("New ADU Laws") that, among other things, amended Government Code Section 65852.2 and 65852.22 to impose new limits on local authority to regulate ADUs and JADUs; and WHEREAS, the New ADU Laws mandate that cities with accessory dwelling unit ordinances that are inconsistent with the State laws apply the State standards for ADU and JADU approval; and WHEREAS, according to the State Department of Housing and Community Development website the New ADU Laws were adopted to promote the development of ADUs and JADUs, and include allowing ADUs and JADUs to be built concurrently with a single-family dwelling, opening areas where ADUs can be created to include all zoning districts that allow single-family and multifamily uses, modifying fees from utilities such as special districts and water corporations, limited exemptions or reductions in impact fees, and reduced parking requirements; and WHEREAS, the New ADU Laws took effect January 1, 2020, and because the City's ADU ordinance did not comply with the New ADU Laws, the City's ordinance became null and void on that date as a matter of law; and WHEREAS, the City desires to amend its local regulatory scheme for the construction of ADUs and provide for JADUs to comply with the amended provisions of Government Code sections 65852.2 and 65852.22; and WHEREAS, the approval of ADUs and JADUs based solely on the default statutory standards, without local regulations governing height, setback, landscape, architectural review, among other things, would threaten the character of existing neighborhoods, and negatively impact property values and personal privacy; and WHEREAS, the City desires to preserve its cultural, historical, and architectural heritage and resources as living parts of community life that benefit and enrich the lives of its present and future residents; and Page 23 of 40 RESOLUTION NO. PAGE 5 WHEREAS, the Planning Commission of the City of Arroyo Grande, after giving notices thereof as required by law, held a public hearing on August 16, 2022 concerning this code amendment and carefully considered all pertinent testimony, the staff report, its attachments and all supporting materials referenced therein or offered in the matter as presented; and WHEREAS, on August 16, 2022, the Planning Commission of the Arroyo Grande recommended to the City Council amending Section 16.52.150 of the Arroyo Grande Municipal Code; and WHEREAS, the City Council of the City of Arroyo Grande has, after giving notice thereof as required by law, held a public hearing on __________, 2022, concerning proposed amendments to AGMC Section 16.52.150; and WHEREAS, the City Council of the City of Arroyo Grande, at its regularly scheduled public meeting on __________, 2022 introduced this Ordinance to amend Section 16.52.150 of Title 16, Chapter 52 of the Arroyo Grande Municipal Code; and WHEREAS, the City Council has carefully considered all pertinent testimony and the staff report, its attachments and all supporting materials referenced therein or offered in the matter as presented at the public hearing. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DOES ORDAIN AS FOLLOWS: SECTION 1. The above recitals and findings are true and correct and are incorporated herein by this reference. SECTION 2. Section 16.52.150 of the Arroyo Grande Municipal Code is hereby amended in its entirety to read as follows: A. Definitions/Prohibited Units. 1. Accessory Dwelling Unit (ADU): An attached or detached residential dwelling unit which provides complete independent living facilities for one or more persons. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation and shall be located on the same parcel as the primary dwelling or multi-family development. An ADU also includes an efficiency unit and manufactured home as provided in Government Code Section 65852.2(j). An ADU may serve as a rental unit for more than 30 days or be occupied by a person or persons including, but not limited to family members, guests, or caretakers. 2. Junior Accessory Dwelling Unit (JADU): A residential dwelling unit, as defined in Government Code Section 65852.22, that is no more than 500 square feet in size and contained entirely within an existing or proposed single-family structure. A JADU shall include an efficiency kitchen, and may Page 24 of 40 RESOLUTION NO. PAGE 6 include separate sanitation facilities or share sanitation facilities with the existing dwelling. A JADU may serve as a rental unit for more than 30 days. Owner-occupancy of either primary dwelling or JADU is required by state law. 3. Mobile homes, as defined in Section 18008 of the Health and Safety Code, recreational vehicles, trailers, or similar units, shall not be allowed as ADUs. 4. Factory-built housing as defined by California Health and Safety Code Section 19971 shall be allowed as ADUs. B. Where Permitted/Establishment. 1. ADUs are permitted in all zoning districts allowing single-family or multifamily use on lots developed with existing or proposed dwellings. 2. An ADU may be established by the following methods: a. Attached to, or located within, an existing or proposed primary dwelling. b. A new detached structure, or located within or attached to an accessory structure, including detached garages or similar structures. c. Conversion of permitted existing attached or detached accessory structures, including garages, storage areas, or similar structures. d. Reconstruction of a permitted existing structure or living area that is proposed to be converted to an ADU, or a portion thereof, in the same location and to the same dimensions and setbacks as the existing structure. 3. A Junior Accessory Dwelling Unit (JADU) may be established within the space of the primary dwelling, including an attached garage or attached accessory structure. 4. A JADU may be established within the space of the primary dwelling in combination with the construction of one detached, new construction ADU not exceeding 850 square-feet and a height of 16 feet with four-foot side and rear setbacks. 5. The existing unit may be considered the ADU, in conjunction with the construction of a new primary dwelling unit built, if all applicable zoning requirements are met. Page 25 of 40 RESOLUTION NO. PAGE 7 6. ADUs shall be permitted on lots developed with existing multi-family dwellings subject to the following provisions: a. The property shall be developed with an existing multi-family structure(s). b. A minimum of one ADU may be constructed, or up to 25 percent of the existing unit count, within non-livable space, including, but not limited to, storage rooms, passageways, attics, basements, or closets. c. The construction of two detached ADUs with a maximum size of 850 square feet, or 1,000 square feet with more than one bedroom, shall be permitted in addition to ADUs created within non-livable space, subject to a maximum height of 16 feet, and four-foot side and rear setbacks. d. Existing livable space of multi-family dwelling units shall not be converted to ADUs. C. Permit Requirements: 1. The City shall ministerially review and act on a building permit application for an ADU or JADU within 60 days after receiving the application. An ADU or JADU proposed with a permit application for a new primary dwelling shall not be approved until the primary dwelling receives approval. A certificate of occupancy for an ADU or JADU shall not be issued before occupancy is granted for the primary dwelling. 2. Unless otherwise preempted by state law, the design and construction of all newly constructed ADUs and JADUs shall comply with all applicable building, housing, zoning and site development standards of the Arroyo Grande Development Code, including but not limited to standards regarding setbacks, floor area ratio standards, height, lot coverage, and in the surrounding neighborhood that are listed in the California Register of Historic Places. Applicants shall also comply with all applicable fee and charge requirements, and other applicable zoning requirements. 3. Pursuant to Government Code Section 65852.2(e) (2), the City shall not require the correction of nonconforming zoning conditions as a condition for ministerial approval. D. Development Standards. 1. ADU Type, Location & Size. Page 26 of 40 RESOLUTION NO. PAGE 8 a. Attached Unit: An ADU attached to an existing primary dwelling shall have a minimum size of 150 square feet and shall not exceed 50 percent of the total existing or proposed living area of the primary dwelling, except as provided by the By-Right Provision below. b. Detached Unit: An ADU structurally independent and detached from the existing primary dwelling shall have a minimum size of 150 square feet and shall not exceed 1,200 square feet. c. Conversion of Existing Structure: An ADU constructed within the footprint of an existing dwelling or attached or detached structure shall not be subject to a maximum square-footage of living area. Expansion of an existing structure proposed to be converted to an ADU is limited to 150 square feet for purposes of accommodating ingress and egress. d. By-Right Provision: An attached or detached ADU with a maximum size of 850 square-feet or 1,000 square-foot with more than one bedroom shall be permitted in any circumstance subject to a maximum height of 16 feet, four-foot side and rear setbacks, and compliance with all building codes. No minimum lot size or lot coverage requirement shall apply. e. ADUs shall have independent exterior access from the primary dwelling. No passageway to the primary dwelling shall be required. f. Maximum Slope. The building site upon which the accessory dwelling unit will be constructed shall not have an average slope in excess of twenty (20) percent. A topographic map and slope analysis, as recommended by the community development director, shall be stamped and signed by either a registered civil engineer, registered architect, or registered landscape architect. Average slope is defined as follows: S = I x L x 100 A x 43,560 Where S = average natural slope, in percent. I = interval, in feet, of the contour lines. L = the sum, in feet, of the length of the contour lines, at selected contour interval "I". A = the total area, in acres, of the site. Page 27 of 40 RESOLUTION NO. PAGE 9 g. ADUs shall not be required to provide fire sprinklers if they are not required for the primary residence. 2. JADU Location and Size. a. A JADU shall be constructed entirely within an existing or proposed primary dwelling and shall not exceed 500 square-feet. b. JADUs shall have an independent exterior entrance from the primary dwelling, but may also include shared access between the two units. 3. Required Setbacks. a. An attached or detached ADU not exceeding 850 square feet or 1,000 square feet with more than one bedroom, and a height no greater than 16 feet shall provide a minimum setback of four feet from the side and rear property lines. ADUs exceeding the maximum square footage or height specified in this provision shall be subject to compliance with setbacks of the underlying zoning district. b. Cornices and eaves may project into the required yards by no more than one foot. c. ADUs shall comply with the front yard setback and be located on the rear portion of a parcel whenever possible. unless no feasible alternative exists. Feasibility is determined whether a by-right ADU can physically be constructed behind the primary dwelling due to the presence of maximum slope, other structures, existing easements, or drainage features. d. When an ADU is created within an existing structure, the side and rear setbacks must be sufficient for fire safety as determined by the Fire Department. e. No setback shall be required for an existing garage or accessory structure converted, or portion thereof, to an ADU and no setback shall be required for a new structure constructed in the same location and same dimensions as an existing structure. f. An ADU constructed above an existing garage or dwelling unit, exceeding 16-feet in height, shall meet the side and rear setbacks of the underlying zoning district. Page 28 of 40 RESOLUTION NO. PAGE 10 g. Roof top decks shall not be permitted on any detached ADU. h. Staircases serving an ADU shall provide a minimum setback of four feet from the side and rear property lines subject to approval by the Fire Department. 4. Height and Maximum Lot Coverage. ADUs exceeding 850 square feet or 1,000 square feet with more than one bedroom, and/or a height of 16 feet shall comply with the height, floor-area ratio, and maximum lot coverage of the underlying zoning district. 5. Parking. a. One additional off-street parking space shall be required per unit; with exceptions per subsection g, below. b. No parking space shall be required for an ADU or JADU established within an existing structure. c. Parking spaces shall be a minimum dimension of 9 foot by 18 foot except as specified below. d. Parking spaces may be located in any configuration on the same lot as the ADU, including, but not limited to, as covered spaces, uncovered spaces, tandem spaces, or by the use of mechanical automobile parking lifts. e. Required off-street parking shall be permitted in front, side, and rear setback areas subject to the following: i. Parking may be located on an existing driveway but shall not block sidewalk access or encroach into the public right-of-way. ii. Parking spaces within a side yard must have a minimum clear space width of 10-feet. Vehicles shall not block exterior windows or doors of a dwelling or access to utility boxes or meters. iii. Vehicles must be parked on an acceptable surface of concrete, asphalt, gravel, brick, permeable paver or other stable, dust-free surface. iv. No more than 50% of a front yard shall be dedicated to vehicle parking. Page 29 of 40 RESOLUTION NO. PAGE 11 v. No parking shall be allowed in front yard landscaping areas. vi. Access to on-site parking spaces shall be provided via an approved driveway location only. f. When a garage, carport, or covered parking structure that provides the required spaces for the primary dwelling is demolished or converted in conjunction with the construction of an ADU, no replacement parking shall be required. g. Parking Exemption: As required by Government Code Section 65852.2(d), parking space for an ADU shall not be required in any of the following instances: i. The ADU is located within one-half mile walking distance of public transit. ii. The ADU is located within an architecturally and historically significant historic district. iii. The ADU is part of the existing or proposed primary residence or an existing accessory structure. iv. When on-street parking permits are required but not offered to the occupant of the ADU. v. When there is a car share vehicle located within one block of the ADU. 6. Objective Design Standards a. The colors of the exterior walls, roof, eaves, and windows and doors of a new, detached ADUs must match the appearance and architectural design of those of the primary dwelling. b. If a garage is converted to an ADU, the garage door opening shall be replaced with exterior wall coverings, or residential windows and doors, to match the existing exterior garage wall covering and detailing. c. ADUs created under the By-Right Provisions of this Section are exempt from the Objective Design Standards, including ADUs with pre- approved plans and factory-built housing. d. Where ADUs are to be located within the front yard setback in accordance with Section D.3.c, the Objective Design Standards shall apply. Page 30 of 40 RESOLUTION NO. PAGE 12 e. ADUs located in the D-2.4 Historic Character Overlay District shall comply with the Objective Design Standards. a. Second floor living area shall be setback 5 feet from the ground floor footprint. b. Window sashes and doorframes shall be made of wood or vinyl simulating the appears of wood. Unfinished aluminum is not allowed. c. New or replacement doors shall be wood or an approved substitute material that simulates the appearance of original materials. d. The use of fluorescent “neon”, “day-glo”, or bright primary colors as the predominant shade on building facades is not permitted. 7. Impact Fees & Utilities. a. An ADU under 750 square feet shall not be charged development impact fees. An ADU equal to or greater than 750 square feet may be charged development impact fees. These development impact fees shall be proportional to the square footage of the main dwelling and calculated using the ADU square footage. b. ADUs and JADUs shall comply with water and sewer requirements as determined by the Public Works Department. c. The City shall not require a new or separate utility connection or impose a related connection fee or capacity charge for ADUs or JADUs that are contained within an existing residence or accessory structure. Pursuant to Government Code Section 65852.2(f)(5) an ADU not built within the existing space of a single family house or accessory structure may be required to obtain a new or separate utility connection as determined by the Public Works Department and may be subject to a connection fee or capacity charge based on its square footage or the number of its drainage fixtures unit values. E. Conditions. 1. An ADU/JADU shall not be sold or otherwise conveyed separate from the primary residence. 2. An ADU/JADU may serve as a rental unit or be occupied by family members, guests, or in-home health care providers, and others at no cost. Page 31 of 40 RESOLUTION NO. PAGE 13 3. Neither the ADU/JADU nor the primary dwelling unit shall be rented for a term of less than 31 days. ADUs on multi-family properties shall be subject to this provision, except the restriction shall not apply to existing multi- family units 4. Owner-occupancy shall be required for a property developed with a JADU. The owner may reside in either the primary dwelling or the JADU. The property owner shall record a covenant, approved as to form by the City Attorney, declaring compliance with each and every condition referenced in this section. SECTION 3. This Ordinance is exempt from the California Environmental Quality Act in accordance State CEQA Guidelines, Article 18: Statutory Exemptions, Section 15282(h).This section of CEQA provides a statutory exemption for “the adoption of an ordinance regarding second units [accessory dwelling units] in a single-family or multifamily residential zone by a city or county to implement the provisions of Sections 65852.1 and 65852.2 of Government Code as set forth in Section 21080.17 of the Public Resources Code.” The City Clerk shall file a Notice of Exemption from CEQA review in accordance with CEQA Guidelines. SECTION 4. A summary of this Ordinance shall be published in a newspaper published and circulated in the City of Arroyo Grande at least five (5) days prior to the City Council meeting at which the proposed Ordinance is to be adopted. A certified copy of the full text of the proposed Ordinance shall be posted in the office of the City Clerk. Within fifteen (15) days after adoption of the Ordinance, the summary with the names of those City Council members voting for and against the Ordinance shall be published again, and the City Clerk shall post a certified copy of the full text of such adopted Ordinance. SECTION 5. This Ordinance shall take effect and be in full force and effect thirty (30) days after its passage. SECTION 6. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. On motion by Council Member ______, seconded by Council Member _______, and by the following roll call vote to wit: AYES: NOES: Page 32 of 40 RESOLUTION NO. PAGE 14 ABSENT: the foregoing Ordinance was adopted this ____ day of _______, 2022. Page 33 of 40 RESOLUTION NO. PAGE 15 ___________________________________ CARON RAY RUSSOM, MAYOR ATTEST: ___________________________________ JESSICA MATSON, CITY CLERK APPROVED AS TO CONTENT: ________________________________ WHITNEY McDONALD, CITY MANAGER APPROVED AS TO FORM: ___________________________________ TIMOTHY J. CARMEL, CITY ATTORNEY Page 34 of 40 1 ACTION MINUTES REGULAR MEETING OF THE CITY COUNCIL February 8, 2022, 6:00 p.m. Zoom Virtual Meeting Webinar ID: 832 5584 8846 ByTelephone: 1-669-900-6833; 1-346-248-7799 Council Members Present: Mayor Ray Russom, Council Member Paulding, Council Member Barneich, Council Member Storton, Mayor Pro Tem George Staff Present: City Clerk Jessica Matson, City Attorney Timothy Carmel, City Manager Whitney McDonald, Assistant City Manager/Public Works Director Bill Robeson, Administrative Services Director Nicole Valentine, Community Development Director Brian Pedrotti, Acting Planning Manager Andrew Perez, Associate Planner Patrick Holub Given the recent increase in COVID-19 cases in San Luis Obispo County, and in compliance with Assembly Bill (AB) 361, which allows for a deviation of teleconference rules required by the Ralph M. Brown Act, this meeting was held by teleconference. _____________________________________________________________________ 1.CALL TO ORDER Mayor Ray Russom called the Regular City Council Meeting to order at 6:00 p.m. 2.ROLL CALL City Clerk Matson took roll call. 3.MOMENT OF REFLECTION 4.FLAG SALUTE Bruce Blair, Central Coast Cops 'N Kids, led the flag salute. 5.AGENDA REVIEW 5.a. Closed Session Announcements None. ATTACHMENT 2 Page 35 of 40 4 public comment was received and was read during public comment by the submitter. Upon hearing no further public comments, Mayor Ray Russom closed the public hearing. City Attorney Carmel addressed comments related to due process and noted that there was no violation. Moved by Mayor Ray Russom Seconded by Council Member Barneich Adopt a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DENYING APPEAL CASE NO. 21-007 AND APPROVING PLOT PLAN REVIEW CASE NO. 21-029; LOCATED AT 1562 STRAWBERRY AVENUE; APPLIED FOR BY BRENDA GOROSKI; APPEALED BY STEW AND FRANCINE ERRICO", and to refund the Planning Commission appeal fee of $491 to the Appellants. AYES (5): Mayor Ray Russom, Council Member Paulding, Council Member Barneich, Council Member Storton, and Mayor Pro Tem George Passed (5 to 0) 9.b. Discuss and Consider Introduction of an Ordinance Amending Title 16 of the Arroyo Grande Municipal Code (AGMC) Regarding Accessory Dwelling Units and Tiny Homes On Wheels; Development Code Amendment 20-001 Mayor Ray Russom called for a brief break at 8:24 p.m. The Council reconvened at 8:34 p.m. Mayor Ray Russom, Mayor Pro Tem George and Council Member Storton declared conflicts of interest due to ownership of a permitted accessory dwelling unit. Council Member Barneich declared a conflict of interest due to compensation expected from Council Member George for design of her accessory dwelling unit. City Attorney Carmel commented on the Fair Political Practices Commission's (FPPC) advice regarding the conflicts of interest. City Clerk Matson explained the process for randomly drawing straws virtually to determine which of the conflicted Council members may continue to hear the item. Mayor Ray Russom, Mayor Pro Tem George, Council Members Barneich and Storton were entered by City Clerk Matson into the virtual straw-drawing tool. Mayor Pro Tem George and Council Member Storton virtually drew the short straws and remained in the meeting to hear the item. Mayor Ray Russom and Council Member Barneich left the meeting. Mayor Pro Tem George presided. Community Development Director Pedrotti introduced the item and Acting Planning Manager Perez provided a presentation and responded to questions from Council. Mayor Pro Tem George opened the public hearing. Speaking from the public were Joe Pollon and Randy Russom. City Clerk Matson read into the record written correspondence received Page 36 of 40 5 from Joe Pollon. Upon hearing no further public comments, Mayor Pro Tem George closed the public hearing. Council provided comments regarding removing Tiny Homes on Wheels from the ordinance and creating a separate ordinance; balancing character of neighborhoods; prohibiting short term rentals in all new ADUs; developing objective design standards; prohibiting roof top patios; permitting a fee waiver program; creating a pre-fabrication program; costs and requirements associated with solar panels; and prohibiting Tiny Homes on Wheels in front yards unless no other alternative exists. Moved by Council Member Paulding Seconded by Council Member Storton Direct staff to modify the ordinance to remove the Tiny Homes on Wheels section; to research Council conflict issues regarding Tiny Homes on Wheels and return to Council with direction on alternative means to address Tiny Homes on W heels; and to modify the proposed ordinance to add objective design standards that fit the design of the existing structure; prohibiting roof top patios on detached ADUs; develop a permit fee waiver program; develop a pre-fabricated program; modify language to reflect that ADUs shall be located on the rear portion of a parcel unless no feasible alternative exists; and to research incentives for installation of solar panels. AYES (3): Council Member Paulding, Council Member Storton, and Mayor Pro Tem George ABSENT (2): Mayor Ray Russom, and Council Member Barneich Passed (3 to 0) 9.c. Public Hearing to Discuss and Consider a Resolution Approving Community Development Block Grant (CDBG) Projects for Year 2022 Mayor Ray Russom and Council Member Barneich rejoined the meeting at 10:39 p.m. Community Development Director introduced the item, and Acting Planning Manager Perez provided a presentation and recommended that the Council adopt a Resolution approving projects to be funded with the City’s allocation of CDBG funds for the Year 2022. Mayor Ray Russom opened the public hearing. Upon hearing no public comments, Mayor Ray Russom closed the public hearing. Moved by Council Member Storton Seconded by Mayor Pro Tem George Adopt a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROJECTS FOR YEAR 2022". AYES (5): Mayor Ray Russom, Council Member Paulding, Council Member Barneich, Council Member Storton, and Mayor Pro Tem George Passed (5 to 0) Page 37 of 40 1 Item 8.c. ACTION MINUTES REGULAR MEETING OF THE CITY COUNCIL July 26, 2022, 6:00 p.m. Hybrid City Council Chamber/Virtual Zoom Meeting 215 East Branch Street, Arroyo Grande Council Members Present: Mayor Ray Russom, Mayor Pro Tem George, Council Member Barneich, Council Member Paulding, Council Member Storton Staff Present: Deputy City Clerk Sarah Lansburgh, City Attorney Timothy Carmel, City Manager Whitney McDonald, Assistant City Manager/Public Works Director Bill Robeson, Community Development Director Brian Pedrotti, Planning Manager Andrew Perez, Utilities Manager Shane Taylor, Administrative Services Director Nicole Valentine, City Clerk Jessica Matson Given the recent increase in COVID-19 cases in San Luis Obispo County, and in compliance with Assembly Bill (AB) 361, which allows for a deviation of teleconference rules required by the Ralph M. Brown Act, this meeting was conducted in a hybrid in-person/virtual format. _____________________________________________________________________ 1.CALL TO ORDER Mayor Ray Russom called the Regular City Council Meeting to order at 6:00 p.m. 2.ROLL CALL Deputy City Clerk Lansburgh took roll call. 3.MOMENT OF REFLECTION 4.FLAG SALUTE Mayor Ray Russom led the flag salute. 5.AGENDA REVIEW Mayor Ray Russom and Council Member Barneich requested to move Item 10.a. to the end of the agenda. Council concurred. ATTACHMENT 3 Page 38 of 40 4 Item 8.c. Approval of Construction Plans and Specifications for the 2022 Pedestrian Crossing Improvement 1) Found that the project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Guidelines Section 15301(c) and direct staff to file a Notice of Exemption; 2) Accepted the Grant of Temporary Construction License and Public Pedestrian Access Easement Deeds and direct staff to file the License and Deeds; and 3) Approved the construction plans and specifications for the 2022 Pedestrian Crossing Improvements Project, PW 2021-08, and authorize staff to advertise for construction bids pending approval of a funding allocation from the State. 9. PUBLIC HEARINGS None. 10. OLD BUSINESS 10.a Continued Accessory Dwelling Unit Ordinance Study Session This item was heard after Item 13. Mayor Ray Russom and Council Member Barneich declared conflicts of interest due to owning ADUs and left the meeting. Mayor Pro Tem George took over the meeting as Presiding Officer. Planning Manager Perez presented the staff report and responded to questions from Council. Mayor Pro Tem George invited public comment. No public comments were received. Councilmember Paulding requested the Tiny Home on Wheels (THOW) Ordinance be brought back to Council as soon as possible. Councilmember Storton concurred that the THOW Ordinance can be reviewed by Council at a future meeting. Council concurred regarding the inclusion of a fee waiver program for moderate- to low-income individuals. Moved by Council Member Storton Seconded by Council Member Paulding Agreed with staff's recommendation and provided direction for staff to keep the 10-year fee waiver program, add additional years if staff is able to accommodate a program for individuals with moderate-income; if so, cap the amount of money that would be used from the fund; and exclude the word "amenities." AYES (3): Mayor Pro Tem George, Council Member Paulding, and Council Member Storton ABSENT (2): Mayor Ray Russom, and Council Member Barneich Passed (3 to 0) 11. NEW BUSINESS Page 39 of 40 MEMORANDUM TO: Planning Commission FROM: Brian Pedrotti, Community Development Director BY: Patrick Holub, Associate Planner SUBJECT: Consideration of Development Code Amendment 22-003 Regarding a Permanent Parklet Program DATE: August 16, 2022 RECOMMENDATION: It is recommended that the Planning Commission continue the public hearing to a date certain of September 6, 2022 to allow staff additional time to draft the proposed ordinance and incorporate feedback from the Architectural Review Committee regarding the recommended amendments to the performance standards. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. Page 40 of 40