ITEM 8-B

COUNCIL MEETING:  June 9, 1992           Santa Monica, California

TO:      Mayor and City Council

FROM:    City Staff

SUBJECT: Ordinance for Introduction and First  Reading  Extending
         the  Citywide  Moratorium  on  Non-Residential and Hotel
         Development.

INTRODUCTION

This report recommends that the City Council introduce for  first
reading  an  ordinance  to  extend  the  Citywide  moratorium  on
non-residential and  hotel  development  for  an  additional  six
months.    While   preparation   of  the  Commercial  Development
Alternatives  Environmental  Impact  Report  (EIR)  is  currently
underway,  the fiscal impact analysis cannot be completed without
the assistance of the information to be provided by  the  ongoing
Fiscal  Impacts  of  New Development (FIND) study.  Completion of
this study has been delayed and the  needed  information  is  not
expected  until  mid-August.   The  urgent  moratorium  ordinance
expires on August 16, 1992.  Given the delay in obtaining all the
required  information to make a complete recommendation regarding
non-residential   development   standards   to   Council,   staff
recommends extending the moratorium until February 26, 1993.

BACKGROUND

In March, 1991, following adoption of  Ordinance  1570  (CCS)  to
extend  the  commercial  development  moratorium  for  one  year,
Council adopted a work program which included the preparation  of
a  Master  Environmental  Assessment,  selection  of  a preferred
traffic methodology  and  definition  of  a  significant  traffic
impact.   In May, 1991, the City Council unanimously selected the
Highway Capacity Manual (HCM) delay methodology.  Since this type
of traffic methodology is much more labor and data intensive than
the approach originally selected when the one year  timeline  was
established,  Council  recognized  that  additional time would be
necessary to complete the moratorium work program.  In  addition,
in  order  to gather accurate data on the impacts of summer beach
traffic on the City's street system, summer counts were collected
in  July  and  August,  rather than in June as proposed under the
original work program time line.  To accommodate  these  changes,
in  November,  1991  Council  adopted  Ordinance 1610 (CCS) which
extended the moratorium until August 26, 1992.

In January, 1992  Council  considered  the  proposed  alternative
development  standards  to  be analyzed in the EIR.  At that time
Council directed staff to prepare a report  that  would  evaluate
eight commercial development scenarios as well as three different
scenarios for rezoning a portion of the C5 and  M1  districts  to
residential   use.   Preparation  of  this  report  is  currently
underway.  A list of the development alternatives to be  included
in the study is contained in Attachment B.

A key component of the Commercial Development Alternatives EIR is
is  the  fiscal  impact analysis.  This analysis will be prepared
using the model developed as  part  of  the  City's  FIND  Study.
However,  the  FIND  Study  has  been delayed and the information
needed to complete the EIR fiscal analysis will not be  available
until  mid-August.    Therefore,  the  draft EIR, which was to be
released in March, will not be available until September.   A six
month   extension   of   the  commercial  development  moratorium
ordinance will be  necessary  in  order  to  complete  the  tasks
outlined by Council in the moratorium work program.  The attached
moratorium ordinance will extend the application of  the  current
interim  zoning  standards  until February 26, 1993.  Pursuant to
Zoning Ordinance Section 9120.6, no  further  extensions  of  the
commercial  moratorium ordinance may be permitted beyond February
1993.

Revised Commercial Moratorium Work Program Timeline

Staff recommends revising the Commercial Moratorium Work  Program
timeline as follows:

Draft Commercial Development Alternatives
EIR Released for 30 Day Public Review and
Comment Period                                  September 1992

Public Comment Period Closes                    October 1992

Final EIR Released                              October 1992

Final EIR and Ordinance to Council for
First Reading                                   November 1992

Second Reading                                  December 1992

Ordinance Effective                             January 1993

Commercial Moratorium Ordinance Expires         February 26, 1993

BUDGET/FINANCIAL IMPACT

The recommendation presented in  this  report  does  not  have  a
budget or fiscal impact.

RECOMMENDATION

It is recommended that  the  City  Council  introduce  for  first
reading  an  ordinance  to  extend  the  Citywide  moratorium  on
non-residential and  hotel  development  for  an  additional  six
months.  The moratorium would then expire on February 26, 1993.

Prepared By:  Paul Berlant, Director of LUTM
              Suzanne Frick, Planning Manager
              Amanda Schachter, Associate Planner
              Land Use and Transportation Management Department
              Program and Policy Development Division

Attachments:  A.   Ordinance Extending the Citywide Moratorium on
                   Non-Residential and Hotel Development
              B.   Commerical    Development    Standards     EIR
                   Alternatives


                   ORDINANCE NUMBER      (CCS)

                      (City Council Series)

             AN ORDINANCE OF THE CITY COUNCIL OF THE
           CITY OF SANTA MONICA EXTENDING THE CITYWIDE
       MORATORIUM ON NON-RESIDENTIAL AND HOTEL DEVELOPMENT

THE CITY COUNCIL OF THE CITY  OF  SANTA  MONICA  DOES  ORDAIN  AS
FOLLOWS:

     SECTION 1.  Findings and Purpose.  The  City  Council  finds
and declares:

     (a)   In  recent  years,   the   pace   of   non-residential
development  in  the City has accelerated dramatically, adversely
affecting the capacity and  quality  of  the  City's  street  and
highway system, the jobs/housing balance within the City, and the
quality of life in the community, including environmental quality
and neighborhood character.

     (b)  In 1987, a building permit  was  issued  for  only  one
non-residential project totaling 1,014,546 square feet.  In 1988,
building   permits   were   issued    for    twenty-three    (23)
non-residential  projects  totaling  2,835,940  square  feet.  In
1989,  discretionary  planning  approvals  were  granted  for  17
non-residential  projects  totaling  1,077,402  square  feet.  In
1990,  discretionary  planning  approvals  were  granted  for  13
non-residential   projects  totaling  776,987  square  feet.   In
addition, of the 17 discretionary projects approved in 1989, nine
(9)  of  the projects, totaling 577,910 square feet, have not yet
been issued building permits and begun construction.

     (c)  Since the non-residential  development  moratorium  was
initially  adopted  by  the City Council in May 1989, and through
November 1990, a total of 203,308 square feet of non-residential,
non-discretionary   development   has  been  approved  under  the
provisions of the moratorium ordinance.

     (d)  Based on population  and  employment  projections,  the
Environmental   Impact   Report   on  the  City's  Land  Use  and
Circulation Element, adopted on October 23, 1984, projected  that
there  would  be a demand for an additional 5,800,000 square feet
of non-residential development by the year  2000.   As  of  1989,
development in the City has already exceeded the projected amount
of development for the year 2000.

     (e)  A review of recent Initial  Studies  and  Environmental
Impact  Reports  prepared  for the City reveals that there are at
least thirteen intersections in the City where the existing level
of service ("LOS") falls below "D".  These reports further reveal
that with the impact of approved and proposed projects within and
outside  the  City,  the  future  level  of  service  of at least
thirty-three (33) intersections across the City is  projected  to
fall below LOS "D".

     (f)  According to the City  of  Los  Angeles,  the  existing
capacity  of  the Hyperion Treatment Plant, where wastewater from
the City of Santa Monica's public sewer  system  is  treated  and
disposed  of,  is operating at or near its current full capacity,
necessitating regulation  of  the  rate  of  wastewater  increase
handled   by  the  City's  sewer  system.   The  urgency  of  the
wastewater treatment and disposal problem is illustrated  by  the
adoption or Ordinance Number 1451 (CCS) on July 26, 1988.

     (g)   The  pace  of  non-residential  development  has   far
outstripped  the  pace  of  residential  development in the City,
further increasing the imbalance between the number  of  jobs  in
the  City and the availability of housing for persons employed in
the City.

     (h)  Although revisions  to  the  Zoning  Ordinance  lowered
heights  and floor area ratios in most non-residential districts,
these reductions do not control the rate, location  or  character
of  development in those areas, and do not adequately address the
infrastructural and environmental problems currently  facing  the
City.

     (i)  According to the Environmental  Impact  Report  on  the
Zoning  Ordinance,  there  is  a  maximum theoretical capacity of
between  62,924,000  and  75,916,000  square  feet   for   office
commercial,  and industrial development in the City.  The maximum
build-out potential needs to be re-examined as do the  mechanisms
for  limiting and mitigating the impacts of that build-out on the
City's infrastructure.

     (j)  The increase in development activity in the City  poses
a  threat  to  the  public  health,  safety  and  welfare  of the
residents.

     (k)  The City's zoning, planning, subdivision, and  building
regulations require review as they pertain to the non-residential
development activity within the City  in  order  to  ensure  that
development  is  consistent  with  the  public health, safety and
welfare.

     (l)  Following the initiation or Ordinance Number 1481 (CCS)
creating  a  ten  month  and fifteen day moratorium, three public
workshops were held to help familiarize and  involve  the  public
with  issues  to  be  addressed  as  part  of  a  Citywide growth
management strategy.  In addition, three reports were released, a
background  report  which discussed the existing condition of the
City, a fiscal analysis which discussed the fiscal impact of  new
development  on  the  City,  and  a  Citywide Traffic Study which
analyzed the operation of the City's street system.

     (m)  Since the initiation of  Ordinance  Number  1512  (CCS)
extending the moratorium for an additional ten months and fifteen
days, a draft Growth Management Strategy Implementation Plan  was
released  which  proposed  a plan to control the rate, intensity,
and  types  of  uses  in  new  commercial  development  projects.
Following two Planning Commission public hearings and one meeting
for  Commission  discussion  and  deliberation,  the   Commission
recommended  that  the  strategy  be pursued in greater depth and
that a comprehensive plan to manage growth in  the  City,  rather
than  a  plan  directed  primarily  at  controlling  the  pace of
commercial development, be prepared.

     (n) Following the initiation of Ordinance Number 1570  (CCS)
extending  the  moratorium for one year, a study session was held
with the Planning Commission and  City  Council  to  compare  and
evaluate    traffic  methodologies.   On  May  14, 1991, the City
Council directed staff to use the Highway Capacity  Manual  (HCM)
delay  approach  to analyzing intersection capacities and traffic
flow rates in the City for all future traffic studies.   The  HCM
methodology  requires  extensive field work gathering information
on queue lengths, lane widths, percentage of heavy  vehicles  and
presence  of  pedestrians  and/or bicyclists.  For these reasons,
the HCM methodology is much more labor and  data  intensive  than
the  previously  used  Critical Movement Analysis (CMA) approach.
The one year moratorium work  program  schedule  was  based  upon
using   the   CMA   methodology.   Using  the  HCM  approach  and
incorporating July/August summer counts required an extension  of
the  Commercial  Moratorium  and  the Moratorium Work Program, as
acknowledged by Council on May 14, 1991.

     (o)  Since the initiation of Ordinance 1610 (CCS)  extending
the  moratorium  for  six months, a Citywide Master Environmental
Assessment has been prepared and reviewed by  both  the  Planning
Commission  and the City Council.  In addition, preparation of an
Environmental Impact Report (EIR) is underway which will  analyze
eleven   commercial   development   alternatives,   including  an
evaluation of the impact associated with the rezoning of portions
of  the  C5  and  M1 districts to residential uses.  The EIR will
include an analysis of the fiscal impacts of altering the  City's
existing   development   standards.    This  analysis  cannot  be
completed without the use of the City's  Fiscal  Impacts  of  New
Development  (FIND) study.  Due to delays in completing FIND, the
Commercial Development Alternatives EIR will be  delayed  by  six
months.   To provide sufficient time for public review and public
hearings on the EIR, as well  as  Council  consideration  of  new
commercial  development  standards  for  the City, the moratorium
must be extended six months.

     (p)  Expiration of the ordinance would pose  a  current  and
immediate  threat to the public health, safety and welfare of the
residents as set forth in these findings,  and  the  approval  of
additional   subdivisions,   use   permits,  variances,  building
permits, or any other applicable entitlement  for  use  which  is
required  in order to comply with a zoning ordinance would result
in a threat to public health, safety, or welfare.

     SECTION 2.  Moratorium.

     (a)  Subject to the exemptions set forth  in  Section  3  of
this  Ordinance,  a moratorium is hereby placed on the acceptance
for processing of any  applications  for  approval  of  tentative
tract  maps,  tentative  parcel  maps,  administrative approvals,
development review permits, conditional use permits, or any other
City  permits  for the erection, construction, moving, conversion
of, and excavation and grading for, any non-residential  building
or  structure, including any hotel or motel, in the City of Santa
Monica.

     (b)  Subject to the exemptions set forth  in  Section  3  of
this Ordinance, the Planning Commission and City staff are hereby
directed to disapprove all applications filed after May 2,  1989,
for  approval  of  tentative  tract  maps, tentative parcel maps,
administrative approvals, development review permits, conditional
use  permits,  or  any  other  City  permits  for  the  erection,
construction, moving, conversion of, and excavation  and  grading
for  any  non-residential  building  or  structure, including any
hotel or motel, in the City of Santa Monica.

     SECTION 3.   Exemptions.   The  following  applications  are
exempt from the provisions of Section 2 of this Ordinance:

     (a)  Applications for approval of permits involving proposed
developments of structures or uses for governmental, educational,
or public  recreational  purposes  on  land  owned,  operated  or
controlled by the City of Santa Monica, Santa Monica College, the
Santa Monica School District, or  the  State  of  California  and
applications  for  approval  of  permits involving development on
land owned, operated, or controlled by the City of  Santa  Monica
and  intended  for  development of 415 Pacific Coast Highway, the
pier, parking for the pier, or an aquarium.

     (b)  Applications  for  approval  of  permits  for  proposed
developments  in  the Third Street Mall Specific Plan Area and in
the Hospital Specific Plan Area.

     (c)  Applications  for  approval  of  permits  for  proposed
developments  that  fall at or below the following square feet of
floor area for the district in which the development is located:

     C-2   Neighborhood Commercial          7,000
     C-3   Downtown                        15,000
     C3C   Downtown Overlay                15,000
     C-4   Highway Commercial              12,000
     C-5   Special Office                  15,000
     C-6   Boulevard Commercial            15,000
     CM    Main Street                      7,000
     CP    Commercial Professional         11,000
     M1    Industrial Conservation         15,000
     BCD   Broadway Commercial             11,000
     RVC   Residential-Visitor Commercial
           The Promenade                    7,000
           All other parts of the District 15,000

For purposes of calculating floor area  as  it  relates  to  this
ordinance,  covered  at  grade  and  above grade parking shall be
exempt from the floor area calculation.

To the extent  that  a  project  contains  both  residential  and
non-residential  components,  this moratorium applies only to the
non-residential  component  of  such  project.   A  project  that
contains  both  residential  and  non-residential  components may
proceed with an application only if the  square  footage  of  the
non-residential  portion of the project falls below the threshold
set forth in this subsection.

     The reductions in square footage made on February 26,  1991,
shall  apply to any project for which an application was filed on
or after February 27, 1991.

     (d)  Applications for approval of permits involving proposed
developments  for  which  development agreement applications have
been filed on or before May 2, 1989 and proposed developments for
which  development review applications have been filed and deemed
complete on or before May 2, 1989.

              (i)  An application shall be  deemed  complete  for
purposes   of   this  Ordinance  within  fifteen  (15)  days  for
subdivision maps and parcel maps, and thirty (30)  days  for  all
other   permits,   after   the   Planning   Division  receives  a
substantially complete application together with all information,
reports,  drawings,  plans,  filing fees, and any other materials
and documents  required  by  the  appropriate  application  forms
supplied  by the City.  If, within the specified time period, the
Planning Division fails to advise the applicant in  writing  that
his   or  her  application  is  incomplete  and  to  specify  all
additional information required to complete that application, the
application   shall   automatically   be   deemed  complete.   An
application  is   "substantially   complete"   if   the   missing
information is supplied within two (2) working days of the City's
request.

              (ii)  If an application for approval of a  proposed
development has been deemed complete by the City on or before May
2, 1989, an amended application for the  same  project  shall  be
deemed  complete  as  of  May  2,  1989,  so long as the Planning
Director determines that  the  changes  to  the  project  do  not
increase  the  size  or  substantially  alter  the  scope  of the
proposed project.  This Section shall not apply for  purposes  of
deeming  an  application  complete  under the Permit Streamlining
Act.

     (e)  Applications for  approval  of  permits  involving  the
erection,  construction,  enlargement,  demolition, or moving of,
and excavation and grading for, projects which have been  granted
development  permits  by  the  Planning  Commission  or  Planning
Division on or before May 2, 1989.

     (f)   For  applications   involving   the   demolition   and
replacement   of   existing   single   purpose,   single  tenant,
neighborhood serving grocery stores and pharmacies, only the  net
new  floor  area  to  be added shall be subject to the floor area
limitations  contained  in  Section  3  (c)  of  this  Ordinance.
Demolition  and  replacement  of the existing floor area shall be
exempt from the square footage limitations.

     (g) Applications for approval of a proposed single  purpose,
single  tenant  grocery store, at or below 25,000 square feet, so
long as they apply for and receive a development review permit.

     SECTION 4.  This Ordinance shall be of no further force  and
effect as of February 26, 1993.

      SECTION 5.  Any provision of  the  Santa  Monica  Municipal
Code  or  appendices  thereto inconsistent with the provisions of
this ordinance, to the extent  of  such  inconsistencies  and  no
further, are hereby repealed or modified to that extent necessary
to effect the provisions of this Ordinance.

     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  any  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.

     SECTION 7.  The Mayor shall sign and the  City  Clerk  shall
attest  to  the  passage of this Ordinance.  The City Clerk shall
cause the same to be published once  in  the  official  newspaper
within  15  days after its adoption.  This Ordinance shall become
effective 30 days from the date of adoption.

APPROVED AS TO FORM:


ROBERT M. MYERS
CITY ATTORNEY

Adopted and approved this __th day of _______, 1992.


                                               Mayor

     I hereby certify that the foregoing Ordinance  No. ___ (CCS)
was  duly  and  regularly  introduced  at  a  meeting of the City
Council on the 9th day of June 1992; that the said Ordinance  was
thereafter  duly  adopted at a meeting of the City Council on the
__th day of ________ 1992 by the following Council vote:

     Ayes:         Councilmembers:

     Noes:         Councilmembers:

     Abstain:      Councilmembers:

     Absent:       Councilmembers:

                                       ATTEST:


                                                City Clerk