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CC 2024-03-12 _09e 2023 General Plan Annual Progress ReportItem 9.e. MEMORANDUM TO: City Council FROM: Brian Pedrotti, Community Development Director BY: Andrew Perez, Planning Manager SUBJECT: 2023 General Plan Annual Progress Report DATE: March 12, 2024 SUMMARY OF ACTION: The General Plan Annual Report is an informational document identifying work completed in the previous year to implement the City’s General Plan. Once received and filed by the City Council, the Report is filed with the Governor’s Office of Planning and Research and the California Department of Housing and Community Development . IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: No financial impact is projected. RECOMMENDATION: 1) Review and accept the 2023 General Plan Annual Report (the “Annual Report” or “Report”) and direct staff to forward the Report to the Governor’s Office of Planning and Research and the Department of Housing and Community Development ; and 2) Find that the request is not a project as defined by the California Environmental Quality Act pursuant to State CEQA Guidelines section 15378(b)(5). BACKGROUND: California Government Code Section 65400(a)(2) requires all cities to file a General Plan Annual Report to the Governor's Office of Planning and Research (OPR) and the Department of Housing and Community Development (HCD). By statute, the annual report must include the following: (1) the status of the plan and progress in its implementation; (2) the progress in meeting regional housing needs an d removing governmental constraints to housing for all income levels; and (3) the degree to which the General Plan complies with State Office of Planning and Research guidelines . The purpose of the Report is to monitor the City's implementation of the Gene ral Plan over time, to help identify statewide trends, document progress in meeting the City’s share of regional housing needs, and inform local decision makers. Prior to submittal to the state, the Annual Report must be presented to the City Council for r eview and acceptance. As Page 57 of 134 Item 9.e. City Council 2023 General Plan Annual Progress Report March 12, 2024 Page 2 a procedural matter, the Annual Report was also brought to the Planning Commission for receipt and acceptance prior to the City Council since the Planning Commission acts as a "keeper" of the General Plan and is responsible for implementing state planning and land use laws. The City's General Plan was adopted in October 2001. A number of activities have been undertaken that implement the goals and policies of the General Plan since that time, including the optional elements adopted by the City. Planning Commission The Annual Report was presented to the Planning Commission at its meeting on February 20, 2024. The Planning Commission recommended that the report be submitted to the City Council for final acceptance. ANALYSIS OF ISSUES: The Annual Report provides an overview of the activities completed or currently being undertaken during 2023 to implement or update the General Plan. No updates to any elements of the General Plan were completed during the 2023 calendar year; however, efforts to comprehensively update the General Plan are underway. On March 28, 2023, the City entered into an agreement with Mintier Harnish, a land use and planning consultant, to assist City staff with the update. During the remainder of 2023, City staff conducted extensive project outreach to solicit community comments and participation. Project branding was developed, a project website was developed, and newsletters were posted to the website. Study sessions with the City Council and Planning Commission were held in August and September to communicate the process, establish a project schedule, and obtain feedback from the community. The City held the first of several planned workshops on October 5, 2023, to identify existing assets, issues, and opportunities in the community. An online survey was also available as an alternative means for the community to provide feedback. The responses from both the workshop and the online survey were used to inform a Community Engagement Summary Report. Meeting the housing goals established by the City’s Housing Element relies on the creation of accessory dwelling units (ADUs). Housing Element Program A.2-1 encourages ADU development through updates to the ADU ordinance and execution of the pre-approved ADU plan program. Plans for the pre -designed ADU plan program, a regional effort with the cities of Atascadero, Grover Beach, and Morro Bay, are complete and are now available for public use. The City’s Annual Report is formatted into two (2) sections:  Section 1: Introduction, including the legal requirements of the Annual Report and status of the adopted Elements of the General Plan; and  Section 2: Community Development Department Summary of Activity for 2023 Page 58 of 134 Item 9.e. City Council 2023 General Plan Annual Progress Report March 12, 2024 Page 3 ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Accept the 2023 General Plan Annual Report and direct staff to forward the Report to OPR and HCD; or 2. Do not accept the 2023 General Plan Annual Report at this time and provide direction to staff regarding modifications to the Report; or 3. Provide other direction to staff. ADVANTAGES: The City will be providing the State with data in compliance with California Government Code Section 65400 and the required April 1st deadline. The information contained in the report provides valuable insights about the effectiveness of housing policies and programs. DISADVANTAGES: There are no disadvantages identified with filing the Annual Progress Report. ENVIRONMENTAL REVIEW: Staff recommends the City Council find the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) pursuant to State C EQA Guidelines section 15378(b)(5). The action is an administrative activity of the City that involves a report only to a State agency on progress regarding the General Plan implementation. The report does not authorize any development or changes to land use. Thus, the project would not result in any direct or indirect changes to the environment, and consequently, this action is not a project within the meaning of CEQA. 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. ATTACHMENTS: 1. 2023 General Plan Annual Progress Report Page 59 of 134 Arroyo Grande General Plan Annual Progress Report - 2023 Page 1 ATTACHMENT 1 General Plan Annual Progress Report 2023 Page 60 of 134 Arroyo Grande General Plan Annual Progress Report - 2023 Page 2 CITY OF ARROYO GRANDE City Council Caren Ray Russom, Mayor Jim Guthrie, Mayor Pro Tem Kristen Barneich Lan George Kate Secrest Planning Commission Jamie Maraviglia, Chair Bruce Berlin, Vice Chair Kevin Buchanan Cathy Sackrison Virginia Roof City Staff Matthew Downing, City Manager Bill Robeson, Assistant City Manager/Public Works Director Brian Pedrotti, Community Development Director Shannon Sweeney, City Engineer Mark Sadowski, Contract Building Official Andrew Perez, Planning Manager Contact Information City of Arroyo Grande Community Development Department 300 E. Branch Street Arroyo Grande, CA 93420 Phone: (805) 473-5420 Website www.arroyogrande.org Page 61 of 134 Arroyo Grande General Plan Annual Progress Report - 2023 Page 3 Contents Section 1 - Introduction .................................................................................................................. 4 A. Purpose of the Annual Report ................................................................................................ 4 B. Purpose of the General Plan ................................................................................................... 4 C. Status of the Adopted Elements of the City’s General Plan ................................................... 4 Land Use Element (Adopted October 2001) ............................................................................... 7 Circulation Element (Adopted June 2021) .................................................................................. 7 Housing Element (Adopted January 2021) ................................................................................. 7 Agriculture, Conservation, and Open Space Element (Adopted October 2001, Amended June 2007)............................................................................................................................................ 8 Safety Element (Adopted October 2001) .................................................................................... 8 Noise Element (Adopted October 2001) ..................................................................................... 8 Economic Development Element (Adopted October 2012) ....................................................... 8 Parks and Recreation Element (Adopted October 2001) ............................................................ 8 Section 2 – Summary of Activity – 2023 ......................................................................................... 9 Planning Commission .................................................................................................................. 9 Building and Life Safety Division ................................................................................................. 9 Planning Division ......................................................................................................................... 9 General Plan Policies and Programs .......................................................................................... 10 Appendix A – Housing Summary ................................................................................................... 11 Page 62 of 134 Arroyo Grande General Plan Annual Progress Report - 2023 Page 4 Section 1 - Introduction A. Purpose of the Annual Report This report reviews the activities that took place to implement the Arroyo Grande General Plan between January 1, 2023, and December 31, 2023. This report fulfills the requirements of Section 65400 of the California Government Code, which requires the City to file an annual report addressing the status of the General Plan and progress made toward goals and objectives. This annual report provides a means to monitor the success of implementing the General Plan and determine if changes need to be made in the plan or its implementation programs. The City is required to file the annual report with the Office of Planning and Research (OPR), as well as to their legislative bodies. The legislative body for Arroyo Grande is the City Council. B. Purpose of the General Plan The General Plan is the foundational development policy document of the City of Arroyo Grande. It defines the framework by which the physical, economic and human resources of the City are to be managed and utilized over time. The General Plan is available for public review at City Hall and on the City’s website. The General Plan acts to clarify and articulate the intentions of the City with respect to the rights and expectations of the public, property owners, and prospective investors and business interests. C. Status of the Adopted Elements of the City’s General Plan State law requires that the General Plan include seven elements. These mandatory elements must cover the following topics: Land Use, Circulation, Housing, Safety, Noise, Conservation, and Open Space. State law allows the City to adopt any additional general plan elements that the City deems necessary. The City has adopted the Parks and Recreation, Agriculture, and Economic Development Elements as optional elements, which have the same decision making weight as the mandatory elements. Additionally, the elements of the general plan may combine elements as it deems necessary. The City of Arroyo Grande General Plan combines Agriculture, Open Space, and Conservation elements into a single element. The following is a breakdown of the City’s General Plan: Arroyo Grande GP Elements Required GP Elements Examples of Topics Covered Agriculture, Conservation and Open Space Element Agriculture (Optional) Define policy for the protection of significant natural resources, providing the setting or context for urban land use development and incorporated City areas. Conservation Open Space Fringe and Urban Area Land Use Element Land Use Provides for the types, density or intensity, design and distribution of existing and potential City areas. Circulation/Transportation Element Circulation Identifies the street pattern and other circulation infrastructure and transportation Page 63 of 134 Arroyo Grande General Plan Annual Progress Report - 2023 Page 5 Arroyo Grande GP Elements Required GP Elements Examples of Topics Covered systems needed to support the uses identified Land Use Element. Housing Element Housing Identifies and provides an analysis of existing and projected housing needs, an evaluation of housing constraints, a statement of goals, policies, quantifiable objectives and financial resources, and scheduled programs for the preservation, improvement, and development of housing. Safety Element Safety Provides for the protection of lives and property from the adverse effects of natural and man- caused hazards. Noise Element Noise Identifies the sources and outlines policy to protect land uses against adverse noise levels associated with necessary circulation and related activity. Economic Development Element Economic Development (Optional) Defines the objectives, policies and proposals for improved employment, business retention and expansion, and fiscal growth of the community. Park and Recreation Element Parks and Recreation (Optional) Outlines these public facilities and services desired to support the City and area residents, businesses, and visitors’ leisure-time activities. The City’s last comprehensive update of the General Plan was completed in October 2001. The City’s last major revision to the General Plan was completed in January 2017, with the City’s approval of the East Cherry Avenue Specific Plan project. Updates to the Housing Element and Circulation Element occurred in 2021. The following is a list of updates to the General Plan since the document’s adoption: Amendment No. Date Type Project GPA 02-001 November 2003 Land Use Map Parkside Residences GPA 02-002 June 2003 Land Use Map Berry Gardens Subarea 2 GPA 03-001 April 2003 Land Use Map Village Core Extension GPA 03-002 September 2003 Land Use Map Agriculture Designations GPA 03-003 March 2004 AG/C/OS Conversion of Prime Ag Land, Farmworker Housing, and Ag Conservation Easements GPA 04-002 August 2004 Land Use Map Noyes Road Properties GPA 04-003 March 2005 Housing Element Housing Element Update Page 64 of 134 Arroyo Grande General Plan Annual Progress Report - 2023 Page 6 Amendment No. Date Type Project GPA 06-001 August 2006 Land Use Map Castillo Del Mar GPA 06-002 November 2006 Circ & Parks and Rec Elements Bike and Pedestrian Plan GPA 06-003 November 2007 Land Use Map S. Elm Multi-Family Designation GPA 06-004 February 2007 Land Use Map Sunset Drive GPA 07-001 June 2007 AG/C/OS Creek Protection Policies GPA 07-002 November 2007 Housing Element Affordable Housing Requirements GPA 09-001 September 2009 Land Use Map 2009 Land Use Map Cleanup GPA 09-001B October 2009 Land Use Map Pearwood Annexation GPA 11-002 October 2013 Housing Element 2007-15 Housing Element GPA 12-002 July 2012 Circulation Element Bicycle and Trails Master Plan GPA 12-003 October 2012 Economic Development 2012 Economic Development Element GPA 14-001 March 2014 Land Use Map Heights at Vista Del Mar Annexation GPA 14-002 October 2015 Land Use Element Courtland/Grand GPA 14-003 March 2016 Housing Element 2014-19 Housing Element GPA 15-001 January 2017 AG/C/OS Creek Map Land Use Map E. Cherry Avenue Specific Plan None of the City’s individual Elements were updated in 2023; however, the City began the process to comprehensively update the City’s General Plan. Since the General Plan has not been updated since 2001, all elements are in need of an update, with the exception of the Housing Element, which was recently updated in accordance with State law. The RFP included the following components in the project scope: 1) Development and implementation of a well-defined, inclusive, and robust public outreach strategy, including policies that promote inclusive outreach to diverse communities contained in the City’s Diversity, Equity, Inclusion, and Justice Policy; 2) Comprehensive update of existing General Plan Elements (except Housing Element); 3) Creation of an Environmental Justice Element; 4) An update to the Climate Action Plan; 5) Development of objective design standards and an overlay district for the East Grand Avenue corridor; and 6) Development Code update Page 65 of 134 Arroyo Grande General Plan Annual Progress Report - 2023 Page 7 On March 28, 2023, the City entered into an agreement with Mintier Harnish, a land use and planning consultant, to assist City staff with the Update. During the remainder of 2023, extensive project outreach to solicit community comments and participation was conducted. Project branding was developed, a project website was developed, and newsletters were posted to the website. Study sessions with City Council and Planning Commission were held in August and September to communicate the process, establish a project schedule, and obtain feedback from the community. The first of several planned workshops was held on October 5, 2023 to identify existing assets, issues, and opportunities in the community. An online survey was also available as an alternative means for the community to provide feedback. The responses from both the workshop and the online survey were used to inform the Community Engagement Summary Report. Land Use Element (Adopted October 2001) No text amendments to the Land Use Element occurred in 20 23. Circulation Element (Adopted June 2021) No text amendments to the Circulation Element occurred in 2023. Housing Element (Adopted January 2021) No text amendments to the Housing Element occurred in 2023. Table 1 reflects the number of units that were entitled, permitted, and/or finaled in 2023. This is compared to the number of units permitted in 2022. With changes in reporting requirements for the State, future Annual Reports will have comparable data between the current and previous years: Table 1: Entitled, Permitted, & Finaled Units – 2022 vs. 2023 Income Level Entitled Permitted Finaled 2022 2023 2022 2023 2022 2023 Very Low 0 0 0 0 0 0 Low 0 1 6 9 7 7 Moderate 5 0 7 8 7 7 Above Moderate 13 14 4 15 4 2 Total 18 15 17 32 18 16 The year 2023 was the fourth year of the 6th cycle for purposes of reporting progress towards the Regional Housing Needs Allocation (RHNA). Table 2 reflects the progress made towards meeting the city’s RHNA for each income category. Page 66 of 134 Arroyo Grande General Plan Annual Progress Report - 2023 Page 8 Table 2: Regional Housing Needs Allocation Progress RHNA Income Category 2020-2028 RHNA 2020-2022 Progress 2023 Progress 2020-2023 Progress Remaining Allocation Very Low Deed Restricted 170 0 0 0 170 Non-Deed Restricted 0 0 Low Deed Restricted 107 20 0 20 72 Non-Deed Restricted 6 9 15 Moderate Deed Restricted 124 0 0 0 109 Non-Deed Restricted 7 8 15 Above Moderate 291 121 15 136 155 Total 692 154 32 186 506 *Progress is measured by units that were issued a building permit Agriculture, Conservation, and Open Space Element (Adopted October 2001, Amended June 2007) No text amendments to the Agriculture, Conservation, and Open Space Element occurred in 2023. Safety Element (Adopted October 2001) No text amendments to the Safety Element occurred in 2023. Noise Element (Adopted October 2001) No text amendments to the Noise Element occurred in 2023. Economic Development Element (Adopted October 2012) No text amendments to the Economic Development Element occurred in 2023. Parks and Recreation Element (Adopted October 2001) No text or map amendments to the Parks and Recreation Element occurred in 20 23. Page 67 of 134 Arroyo Grande General Plan Annual Progress Report - 2023 Page 9 Section 2 – Summary of Activity – 2023 The City of Arroyo Grande policies and programs identified in the General Plan include tools already in place and used on a day-to-day basis in the City. Some of the various tools available to further the City’s goals and objectives include the City Council’s annual goals and priorities, Budget/Capital Improvement Program, Specific Plans and Master Plans of Development, Zoning and Subdivision Regulations, CDBG Funds, etc. Planning Commission The City of Arroyo Grande Planning Commission is designated as the "Planning Agency", as authorized by Section 65100 of the Government Code. The Commission has the discretionary and advisory responsibilities that are authorized by Chapters 2.18, 16.04, and 16.08 of the Arroyo Grande Municipal Code. During 2023, the Planning Commission took action on the following:  Seven (7) Conditional Use Permits;  Two (2) Time Extensions;  Two (2) Lot Line Adjustments;  One (1) Appeal;  One (1) Tentative Parcel Map  One (1) Planned Sign Program; and  Four (4) Development Code Amendments. Building and Life Safety Division The City’s Building and Life Safety Division reviews project plans, issues permits, and provides inspection services for compliance with California's building, fire, mechanical, electrical, plumbing, energy, and disabled access codes, as well as City ordinances. In 2023, the Building Division received 787 building permit applications and issued 632 building permits. During the past year, City building inspectors made 1,651 construction and safety- related inspections associated with building permit activity. The Building Division finaled and completed 396 building permits in the same period. Engineering Division The City’s Engineering Division ensures all construction in the public right-of-way related to land development entitlements comply with adopted codes and engineering standards. Additionally, the Engineering Division, in partnership with the Public Works Department, is responsible for coordinating the implementation of the City’s Stormwater Management Program. In 2023, the Engineering Division received 187 applications for encroachment permits, 12 grading permit applications, and 51 stormwater permit applications for a total of 250 permit applications received. Major work efforts include the Traffic Way Bridge replacement project and the Halcyon Complete Streets Plan. Page 68 of 134 Arroyo Grande General Plan Annual Progress Report - 2023 Page 10 Planning Division The Planning Division assists the community, the City Council, and the Planning Commission in preparing for the City's future growth and development, as well as reviews current development plans for consistency with local ordinances. The Planning Division administers the Development Code and deals with transportation, housing, community facilities, public safety, open space, design, and the use of land. The Planning Division provides support staff to the Planning Commission, Architectural Review Committee, and Downtown Parking Advisory Board. Administrative functions include the scheduling of meetings, preparation of agendas, posting of hearing notices, and preparation of minutes. The Planning Division provides land use analysis, environmental review as required under the California Environmental Quality Act, and prepares staff reports for the aforementioned Commissions and Committees, including the City Council. In 2023, the Planning Division received 89 applications for various land use entitlements (permits), including, land divisions, Conditional Use Permits, Minor Use Permits, and Sign permits. In 2023, the Planning Division spent time working on a number of work items, including:  Adoption of the Halcyon Road Complete Streets Plan;  Adoption of an ordinance to expand zones where emergency shelters for the unhouse d are allowed;  Adoption of an ordinance that limits the installation and maintenance of irrigated turf for water conservation purposes;  Processing conditional use permits for restoration efforts in Arroyo Grande Creek;  Permitting parklets as allowed by the Permanent Parklet Program;  Community Service Grant Program;  Community Development Block Grant Program;  Participation in a regional effort to develop a pre-designed accessory dwelling unit program; and  Participation in the Regional Housing Action Team working group. General Plan Policies and Programs Community Development Department staff is currently working on a number of items specifically related to the General Plan, as referenced above. Prioritized work efforts for the General Plan include the continuation of the comprehensive General Plan Update. Page 69 of 134 Arroyo Grande General Plan Annual Progress Report - 2023 Page 11 Appendix A – Housing Summary Page 70 of 134