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CC 2012-08-28_08.e. Development Code Amendment Adoption of OrdinanceMEMORANDUM TO: CITY COUNCIL FROM: TERESA MCCLISH, DIRECTOR OF COMMUNITY DEVELOPMENT - BY: P MATTHEW DOWNING, PLANNING INTERN SUBJECT: CONSIDERATION OF DEVELOPMENT CODE AMENDMENT 12- 003; LOCATION - CITYWIDE; APPLICANT - ClTY OF ARROYO GRANDE; ADOPTION OF AN ORDINANCE AMENDING PORTIONS OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE REGARDING SETBACKS BETWEEN HABITABLE STRUCTURES ON ADJACENT LOTS, SEPARATE UTILITY METERS FOR SECOND DWELLING UNITS, TEMPORARY USE PERMIT FEE WAIVER AUTHORITY FOR NONPROFITICHARITABLE EVENTS, AND MISCELLANEOUS SIGNS DATE: AUGUST 28,2012 RECOMMENDATION: It is recommended that the City Council adopt an Ordinance amending portions of Title 16 of the Arroyo Grande Municipal Code regarding setbacks between habitable structures on adjacent lots, separate utility meters for secondary dwelling units, temporary use permit fee waiver authority for nonprofitlcharitable events, and miscellaneous signs. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: Based upon potential eligible projects for the previous few years, processing fees for Temporary Use Permits are projected to be reduced $300 to $750 annually. Proposed amendments for separate meters for second residential units would result in some increased fees for water connection and services to property owners if separate meters are installed. No impacts are anticipated in relation to the proposed amendments for temporary signs or habitable structure setbacks. BACKGROUND: This City Council item addresses four recommended amendments to the City's Municipal Code. This year, City staff has been contacted by several residents of Arroyo Grande regarding the provisions of the Municipal Code requiring primary and secondary Item 8.e. - Page 1 CITY COUNCIL DCA 12-003 AUGUST 28,2012 PAGE 2 dwelling units to use a single electric and gas meter on the property. These residents cited the high costs associated with being categorized in an increased energy pricing tier as a result and requested the City investigate allowing separate meters for secondary dwelling units. Secondly, City staff has become aware of potential hazards created in older portions of the City resulting from legally non-conforming structures having been built too close to, or in some instances, over adjacent property lines. Thirdly, representatives from the car dealerships on Traffic Way have identified concerns with the City's temporary banner Ordinance in meeting franchise requirements. At the February 28, 2012 meeting, the City Council provided direction to staff to prepare modifications. Lastly, staff has received numerous requests from charitable non-profit organizations to eliminate the permit fees for Temporary Use Permits for fundraising events. In order to address these changes staff has drafted a proposed Ordinance to modify the Development Code. Planning Commission The Planning Commission reviewed the proposed amendments to the Development Code at a public hearing on July 3, 2012. The Commission discussed each portion of the proposed amendments and provided feedback to staff, which will be highlighted during analysis of the proposals. At the conclusion of the review, the Commission passed Resolutions recorr~mending the Council introduce and later adopt the Resolution and Ordinance, as prepared by staff. Citv Council The City Council introduced an Ordinance as presented by City staff and adopted a Resolution amending the Design Guidelines and Standards for the D-2.11 Design Overlay District - Traffic Way and Station Way, at a regularly scheduled meeting on August 14, 2012. ANALYSIS OF ISSUES: Proiect Description: The proposed Ordinance will amend several portions of Title 16 of the Arroyo Grande Municipal Code, including: Section 16.1 6.090, regarding waiver of Temporary Use Permit processing fees associated with nonprofitlcharitable events; Sections 16.48.160 and 16.52.1 50, regarding separate electric and gas as well as water meters for second residential dwellings; Add Section 16.48.170, regarding structures and fences located within three feet of other habitable structures; and Item 8.e. - Page 2 CITY COUNCIL DCA 12-003 AUGUST 28,2012 PAGE 3 Section 16.60.050, regarding the exemption from further regulation of banners conforming to the amended provisions of the Design Guidelines and Standards for Design Overlay District (D-2.11) - Traffic Way and Station Way. Habitable Structures Setbacks Certain lots within the City, especially within the older parts of town, have structures which were constr~~cted too close to nearby property lines. These situations are a result of unique circumstances in which structures were built during a time when there was not clear survey information or building plans were not exact with regard to the building's placement on a property. This has resulted in the construction of legally non-conforming structures through the City's history. Currently, if a neighbor applies for a building permit, the City can require that the proposed structure is not constructed too close to the legally non-conforming building. However, if a neighbor constructs improvements at the property line that do not require a building permit, such as a fence or a small storage structure, the improvement can render the existing legally non-conforming structure in violation of the Building Code's three foot (3') separation requirements. It is often very difficult to have the property owners agree to an easement or lot line adjustment and demolition of the non-conforming structure is expensive. The proposed Ordinance would prohibit the construction of any structure or fence within three feet (3') of any legally non-conforming habitable structure located on any adjacent property. This ordinance is limited to residentially zoned areas as those are the areas which cause the primary concern. During review of the proposed Ordinance by the Planning Commission, several Commissioners commented that they were wary of imposing a Citywide standard to address an issue in a specific part of town. Both staff and the Deputy City Attorney discussed other options (i.e., easements or lot line adjustments) available to address the issue, but determined the proposed Ordinance woulcl provide the most efficient solution. Additionally, Commissioners commented that they were wary of not allowing property owners to build fences directly on their property lines, or requiring fences "jog" around habitable structures on adjacent properties, when this situation arises. However, the Commission acknowledged the need to protect legally constructed habitable structures and saw the proposed Ordinance as a means to do so. Electric, Gas, and Water Meters The Arroyo Grande Municipal Code currently requires that secondary dwelling units be serviced by the same electric and gas meters as well as the same water meter as the primary residence on a property. These provisions were created in an attempt to make it more difficult to rent both units on a property separately and ensure that the proliferation of second units did not change the character of Item 8.e. - Page 3 CITY COUNCIL DCA 12-003 AUGUST 28,2012 PAGE 4 Single-family residential neighborhoods. Recently, several residents have contacted City staff regarding the high service costs associated with sharing utility meters. Staff researched the costs of shared electric and gas meters utilizing an electric rate calculator provided by Pacific Gas & Electric Company (PG&E). Employing the average monthly California energy consumption rate, identified by the U.S. Energy Information Administration, of 587 kilowatt-hours (kwh) in the rate calculator, staff was able to conclude that a property with two electric meters would result in a monthly cost savings to the property. This savings is a result of the separation of kwh usage for both dwellings across two meters, thus dropping both the primary and secondary dwellings into lower energy pricing tiers. The following table illustrates the information used to make this determination. Although it appears counterintuitive that an electric heated home would have electricity costs below gas heated homes during the winter months, this is due to increased energy allowances for homes with all electric heating during this time of year. As second residential units serve an important function for meeting the City's affordable housing needs, allowing second meters would remove an obstacle to lower rental costs. During review of the proposed Ordinance by the Planning Commission, Commissioners were in support of the allowance of separate utility meters for secondary dwelling units. Comments related to this section of the Ordinance included the cost saving advantages of separate meters and the potential for increased energy conservation if second dwelling unit tenants were to pay for their own utility service. At staff's request, the Planning Commission discussed the addition of language to the proposed Ordinance to allow property owners the option of having separate sewer laterals connected to secondary dwelling units, an idea proposed by the Public Works Supervisor. While the Commission did not see the benefit Item 8.e. - Page 4 CITY COUNCIL DCA 12-003 AUGUST 28,201 2 PAGE 5 given the costs of installing separate sewer laterals to the property owners, Commissioners supported the idea of giving property owners the option. Although the addition of language addressing sewer laterals was not formally part of the Planning Commission Resolution, staff has added this language into the proposed Ordinance based on the receptive feedback. Temporarv Use Permit Fee Waivers Currently, the Municipal Code only allows Temporary Use Permit (TUP) fees to be waived by the City Council. A main criterion for authorization of the fee waiver is that the organization requesting the fee waiver donates 50% of its budget, typically in support of programs in the Five Cities area. Recently, organizers of charitable events have indicated to City staff their desire to have fees waived prior to processing of the permit to allow these funds to be used for the respective events. The proposed Ordinance grants the Community Development Director authority to waive TUP processing fees for nonprofitlcharitable events such as, but not limited to, benefit barbeques, temporary produce sales for youth activity fundraisers, etc. Staff has reviewed TUP requests from January, 2010 to present. Based upon the numbers of permits potentially qualifying for a fee waiver, it is currently estimated that between two (2) and five (5) applications of the average twenty- five (25) applications received annually would be waived. This would result in an annual over-the-counter waiver of TUP processing fees totaling between $300 and $750. These fees are collected to cover costs for City staff to review the application and assess the project's compliance with the Municipal Code. During review of this portion of the proposed Ordinance by the Planning Commission, Commissioners agreed that while the waiver of TUP fees for nonprofitlcharitable events by the Director of Community Development is appropriate, additional information on the process of having these fees waived is necessary. In response, staff created a draft TUP waiver or reduction checklist form based on the existing fee waiver criteria form to highlight a potential avenue for the implementation of the proposed Ordinance. At the City Council meeting of August 14, 2012, the Council provided some direction to staff regarding the waiver form. Staff will return to the Council with an updated fee waiver form at a later date. Proposed implementation of the policy includes deferred payment of processing fees when the application and waiver form are submitted. Based upon information provided on the proposed form and written request for fee waiver or reduction, applicants will be notified of remaining fees to be paid prior to project approval, if necessary. Item 8.e. - Page 5 CITY COUNCIL DCA 12-003 AUGUST 28,2012 PAGE 6 Larne Scale Automobile Retail Banners At the regular City Council meeting of August 14, 2012, the Council adopted a Resolution amending the Design Guidelines and Standards for the D-2.11 Design Overlay District - Traffic Way and Station Way. These amendments included the exemption of temporary banners, provided that the following conditions are met: Only two (2) banners are displayed at any given time; The banners are no larger than forty-eight (48) square feet each; and The banners are displayed for no more than thirty (30) days every two (2) months. Adoption of the Ordinance will amend the Municipal Code to refer to the newly amended Design Guidelines and Standards. ADVANTAGES: The following are advantages to the adoption of the proposed Ordinance identified by staff: The proposed Ordinance will address several deficiencies of the Municipal Code; The proposed Ordinance will help the City to be flexible and assist meeting the changing needs of its residents and business owners; and The Ordinance will help address public health, safety and welfare concerns by regulating placement or expansions of structures near nonconforming habitable residential structures. DISADVANTAGES: The following are potential disadvantages to the adoption of the proposed Ordinance identified by staff: Slight increased costs to the City associated with unfunded processing of Temporary Use Permits; Increased water billing requirements for secondary dwelling units utilizing separate water meters; and Not allowing the construction of fences on property lines near legally non- conforming structures can cause property owners to be required to design fencing that does not sit directly on true property lines. ENVIRONMENTAL REVIEW: In accordance with the California Environmental Quality Act (CEQA), staff has reviewed the project and determined it to be categorically exempt per Sections 15061 (b)(3) and 15308 of the CEQA Guidelines (actions by regulatory agencies for protection of the environment). Item 8.e. - Page 6 CITY COUNCIL DCA 12-003 AUGUST 28,2012 PAGE 7 PUBLIC NOTICE AND COMMENT: The proposed Ordinance was introduced at a duly noticed public hearing on August 14, 2012. Also, the agenda was posted in front of City Hall on Thursday, August 23, 2012 and both the agenda and staff reports were posted on the City's website on Friday, August 24, 2012. Item 8.e. - Page 7 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AMENDING PORTIONS OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE REGARDING SETBACKS BETWEEN HABITABLE STRUCTURES ON ADJACENT LOTS, SEPARATE UTILITY METERS FOR SECONDARY DWELLING UNITS, TEMPORARY USE PERMIT FEE WAIVER AUTHORITY FOR NONPROFITICHARITABLE EVENTS, AND MISCELLANEOUS SIGNS WHEREAS, the City Council finds that in order to enhance the public health, safety and welfare it is in the best interests of the community to: A. Regulate the construction of structures and fences located within three feet of any existing habitable structure on any adjacent residential property; and B. Allow for additional flexibility related to the regulation of utility meters associated with secondary dwelling units; and WHEREAS, the City Council further finds that exempting banners from the City's sign regulations within the D-2.11 Design Overlay District is consistent with the purpose and intent of its sign regulations and will maintain the suitability and appropriateness of allowed signs in a manner that benefits the public and minimizes visual clutter; and WHEREAS, the proposed revisions to Title 16 are categorically exempt from the California Environmental Quality Act (CEQA), pursuant to Sections 15061 (b)(3) and 15308 of the CEQA Guidelines. NOW, THEREFORE BE IT ORDAINED by the City Council of the City of Arroyo Grande as follows:, SECTION 1. The above recitals are true and correct and incorporated herein by this reference. SECTION 2. Arroyo Grande Municipal Code Subsection 16.1 6.090.D. I .a. is hereby amended as follows: 16.16.090 - Minor use permits-Temporary uses D. Submittal and Review Requirements 1. Applications for temporary use permits shall contain the following: Item 8.e. - Page 8 ORDINANCE NO. PAGE 2 a. Completed planning application form and required fee and attachments (see also Section 16.12.030). i. Fees associated with processinq of temporary use permit applications for nonprofit/charitable events mav be waived bv the community development director upon written request at the time of application submittal. SECTION 3. Arroyo Grande Municipal Code Section 16.48.160 is hereby amended to read as follows: 16.48.170 - Utility Meters. nn "I I kfm++ws For anv lot zoned for multiple family or single-familv uses, a secondary dwelling unit mav, but is not required to, have an electric, gas, or water meter, or sewer lateral, separate from the primary residence. SECTION 4. The Arroyo Grande Municipal Code is hereby amended to add Section 16.48.1 70 as follows: 16.48.170 - Structures and fences located within three feet of other habitable structures. No structure or fence, or any portion thereof, may be located, placed or expanded within three feet (3') of anv leqallv non-conforming habitable structure on anv adiacent propertv zoned for residential use. SECTION 5. Arroyo Grande Municipal Code Subsection 16.52.1 50.C.11. is hereby amended as follows: 16.52.150 - Second residential dwellings. C. Property Development Standards . . 11. Utility Meters. u. For any lot zoned for multiple familv or sinqle-familv uses, the second residential dwelling may, but is not required to, have an electric, gas, or water meter, or sewer lateral, separate from the primary residence on the propertv. Applicable utility and development impact fees for the second dwelling will be assessed at the time a building permit is issued, based on building area and fixtures added. SECTION 6. Arroyo Grande Municipal Code Subsection 16.60.050.L. is hereby amended and Subsection 16.60.050.M. is hereby added as follows: Item 8.e. - Page 9 ORDINANCE NO. PAGE 3 16.60.050 - Exempt Signs. Banners in accordance with the provisions of the design guidelines and standards for desiqn overlav district (D-2.11) - Traffic Wav and Station Way. M. Anv sign as determined bv the communitv development director to be similar in use and size to the siqns listed above. SECTION 7. If any section, subsection, subdivision, paragraph, sentence, or clause of this Ordinance or any part thereof is for any reason held to be unlawful, such decision shall not affect the validity of the remaining portion of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, or clause thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, or clause be declared unconstitutional. SECTION8. 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 9. This Ordinance shall take effect thirty (30) days after its adoption. On motion of Council Member , seconded by Council Member , and on the following roll call vote to wit: AYES: NOES: ABSENT: The foregoing Ordinance was adopted this day of , 2012. Item 8.e. - Page 10 ORDINANCE NO. PAGE 4 - TONY FERRARA, MAYOR ATTEST: KELLY WETMORE, ClN CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, ClN MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, ClN ATTORNEY- Item 8.e. - Page 11 THIS PAGE INTENTIO NALLY LEFT BLANK Item 8.e. - Page 12