Item 07-A

Council Mtg: June 11, 1996              Santa Monica, California

TO:       Mayor and City Council

FROM:     City Staff

SUBJECT:  Appeal of Conditional Use Permit 95-007 Requesting
          Design Modification and Modified Fees for a Five-Unit
          Residential Condominium Located at 1043-1045 11th
          Street.  Applicant:  Iraj Sarvian.  Appellant:  Eric
          Parlee  

INTRODUCTION
This report recommends that City Council deny the appeal and
uphold the Planning Commission's approval of Conditional Use
Permit 95-007.
A Planning Commissioner is appealing the conditions of approval
requiring additional sideyard stepbacks and payment of additional
inclusionary housing fees.     

On October 11, 1995, the Planning Commission approved
modifications to this previously approved condominium project
subject to a number of conditions.  On October 24, 1995 Planning
Commissioner Eric Parlee appealed the decision on behalf of the
applicant.  The appeal statement is contained in Attachment A and
the Planning Commission Statement of Official Action is contained
in Attachment B.  

BACKGROUND
Prior Relevant Action
The project applicant purchased the property concurrently with
the City enacting new NW (North of Wilshire Overlay District)
development standards for the site.  The applicant asked the
Council for relief from the new standards given the different
zoning at the time of purchase, which was granted by the Council. 

A building permit, which is still valid, was issued on December
21, 1992 for the project as originally designed (CUP 90-067). 
Although the applicant paid a fee to satisfy the project's
inclusionary housing requirement prior to issuance of building
permits, the fee amount paid was incorrect and less than what was
required by Ordinance.  This was discovered by staff in the
context of the current application and the applicant was informed
that full payment would be required prior to issuance of a
certificate of occupancy.  As part of this appeal, the applicant
is requesting that the Council not require payment of any
additional inclusionary housing fees.

Planning Commission Action
The project recently considered by the Planning Commission
consisted of a modified two and three story building with a
redesigned subterranean garage.  As compared to the original
project, the applicant proposed to eliminate one floor
(approximately 10 feet of building height) and provide a reduced
subterranean excavation area. The modified design provides
stepbacks, however, the proposed stepback area meets neither the
North of Wilshire Overlay standards nor the stepbacks required at
the time the original project was approved.    

The Planning Commission considered the applicant's redesigned
plans, however, staff's recommendation was to approve the
redesign contingent upon payment of additional inclusionary fees
and added side and front stepbacks that would result in a project
consistent with the development standards effective when the
project was originally approved. The Planning Commission's
authority was confined to requiring the project to comply with
either current code standards or with the standards in place when
the project was originally approved.  Since the applicant's
request met neither of these standards it was beyond the Planning
Commission's authority to grant his request for an alternate
approach.  

The Planning Commission also discussed the project's inclusionary
housing obligation.  The applicant paid the fee prior to
obtaining a building permit for the project, however, it was
later discovered that the fee had not been calculated correctly. 
The Planning Commission conditioned the approval subject to
either the City's affordable housing requirements under Ordinance
1519(CCS), which was in effect at the time of the original
project's approval, or SMMC Chapter 9.28, the current
inclusionary ordinance.  The two ordinances differ in that
Ordinance 1519 (CCS) allows an in-lieu fee payment for all
required affordable units or construction of on or off-site deed
restricted units; Chapter 9.28 has a limited in-lieu fee payment
for "low" income units, and off-site deed restricted units are
not permitted.       

Appellant's Statement
The proposed plans remove a full story to minimize the overall
project mass and reduce the excavated subterranean area.  These
revisions are consistent with current development standards. 
However, according to the applicant, both the current NWR2 and
the original project stepback standards create a hardship because
they diminish the building's structural integrity and increase
construction costs.  The proposed design increases the first
floor sideyard stepbacks, enabling the building to maintain the
same stepback at the second level.  With this appeal, the
applicant requests that the stepback requirements be eliminated
as compensation for square footage lost by reducing the building
height.  However, the City Council's authority in this matter is
identical to the Planning Commission's; the Council may only
approve a project that meets either the development standards
effective when the project was originally approved, or the
current NW Overlay development standards.

Under the provisions of Ordinance 1519 (CCS), a five unit
condominium development must provide one "low" income affordable
unit (on or off site) or may pay an in-lieu fee.  The applicant
paid $34,864 prior to building permit issuance, however, a total
of $106,226 was due.  The applicant requests that the City
Council consider that the fees were paid in good faith four years
earlier and that no additional fees be required.  Although the
Council has the authority to approve the fee reduction request,
such an action would be inconsistent with the City's inclusionary
housing policy and with the ordinances adopted to effectuate this
policy.

PUBLIC NOTIFICATION
Pursuant to Municipal Code Sections 9.04.20.22.050 and
9.20.14.010, notice of the public hearing was mailed to all
owners and residential and commercial tenants of property located
within a 500 foot radius of the project at least ten consecutive
calendar days prior to the hearing.  A copy of the notice is
contained in Attachment E.

BUDGET/FINANCIAL IMPACT
The recommendation presented in this report does not have any
budget or fiscal impact.  However, the Council may consider
reducing the Inclusionary Housing Fees as appealed by the
applicant.  Based upon that action, there is potential to impact
the Affordable Housing account.   

CONCLUSION 
The overall mass and redesign of the project was viewed favorably
by the Planning Commission, however, the request to modify the 
sideyard stepbacks and the request to modify the inclusionary
housing fees would not be in keeping with the ordinances adopted
by the City Council.     

RECOMMENDATION
It is respectfully recommended that the City Council deny the
appeal and uphold the Planning Commission's approval of CUP 95-007 based on the following findings and conditions:

CONDITIONAL USE PERMIT FINDINGS:

1.     The proposed use is one conditionally permitted within the
       subject district and complies with all of the applicable
       provisions of the "City of Santa Monica Comprehensive Land
       Use and Zoning Ordinance", in that the proposed
       condominium complies with the  R3   District Development
       Standards of the Zoning Ordinance and the Medium  Density
       Multi-family Residential Section of the Land Use Element
       of the General Plan (under which it was originally
       approved).

2.     The proposed use would not impair the integrity and
       character of the district in which it is to be established
       or located, in that it is an infill located in an existing
       multi family residential area and as redesigned, the
       project is compatible in scale density and use to
       surrounding properties.

3.     The subject parcel is physically suitable for the type of
       land use being proposed, in that the property is currently
       developed for residential purposes and has all necessary
       public improvements and access to utilities.

4.     The proposed use is compatible with any of the land uses
       presently on the subject parcel if the present land uses
       are to remain, in that the building plans for a larger
       scale project currently exist however, the applicant has
       proposed this modification (CUP 95-007) which is more in
       keeping with the R2 NW zoning.

5.     The proposed use would be compatible with existing and
       permissible land uses within the district and the general
       area in which the proposed use is to be located, in that
       it is similar in both scale and use to surrounding
       buildings and the development complies with the Code
       requirements under which the original project was
       approved.

6.     There are adequate provisions for water, sanitation, and
       public utilities and services to ensure that the proposed
       use would not be detrimental to public health and safety,
       in that the proposed development is an infill of urban
       land adequately served by existing infrastructure.

7.     Public access to the proposed use will be adequate, in
       that the site is adequately served by existing streets and
       alleys.

8.     The physical location or placement of the use on the site
       is compatible with and relates harmoniously to the
       surrounding neighborhood, in that the proposed CUP
       amendment (CUP 95-007) provides additional stepbacks,
       reduced height, and additional unexcavated area  lot
       coverage more in keeping with the R2 NW  District,
       therefore the proposed design is of a scale compatible
       with the surrounding neighborhood.

9.     The proposed use is consistent with the goals, objectives,
       and policies of the General Plan, in that the area is
       defined as a multi-family residential area in the Land Use
       Element of the General Plan.

10.    The proposed use would not be detrimental to the public
       interest, health, safety, convenience, or general welfare,
       in that the project is an appropriate and compatible use
       in the R2 NW  District and complies with the provisions of
       the Zoning Ordinance and the General Plan and development
       standards under which it was approved.

11.    The proposed use conforms precisely to the applicable
       performance standards contained in Subchapter 9.04.12 and
       special conditions outlined in Subchapter 9.04.14 of the
       City of Santa Monica Comprehensive Land Use and Zoning
       Ordinance, in that the condominium development does not
       contain any of the special features described in the
       aforementioned Subchapters and, therefore, the Performance
       Standards and Special Conditions relating to those
       features do not apply to the development.

12.    The proposed use will not result in an overconcentration
       of such uses in the immediate vicinity, in that the area
       is defined as a multi-family residential district, and the
       project complies with the unit per acre density
       limitations set in the Land Use Element of the General
       Plan.

CONDITIONAL USE PERMIT CONDITIONS:
Plans

1.     This approval is for those plans dated September 7, 1995,
       a copy of which shall be maintained in the files of the
       City Planning Division.  Project development shall be
       consistent with such plans, except as otherwise specified
       in these conditions of approval.

2.     The Plans shall comply with all other provisions of
       Chapter 1, Article IX of the Municipal Code, (Zoning
       Ordinance) and all other pertinent ordinances and General
       Plan policies of the City of Santa Monica.

3.     Final parking lot layout and specifications shall be
       subject to the review and approval of the Parking and
       Traffic Engineer.  The applicant shall obtain a revised
       parking plan that has been stamped approved by the Parking
       and Traffic Division prior to submitting plans for
       Architectural Board Review.

4.     Minor amendments to the plans shall be subject to approval
       by the Director of Planning.  A significant change in the
       approved concept shall be subject to Planning Commission
       Review.  Construction shall be in conformance with the
       plans submitted or as modified by the Planning Commission,
       Architectural Review Board or Director of Planning.

Architectural Review Board

5.     Prior to consideration of the project by the Architectural
       Review Board, the applicant shall review disabled access
       requirements with the Building and Safety Division and
       make any necessary changes in the project design to
       achieve compliance with such requirements.  The Ar-
       chitectural Review Board, in its review, shall pay
       particular attention to the aesthetic, landscaping, and
       stepback impacts of any ramps or other features
       necessitated by accessibility requirements.

6.     Prior to submittal of landscape plans for Architectural
       Review Board approval, the applicant shall contact the
       Department of Environmental and Public Works Management
       regarding  urban runoff plans and calculations.

7.     In addition to other landscaping requirements, the
       Architectural Review Board, in its review, shall ensure
       that at least 50% of the required front yard stepback and
       50% of the unexcavated side yard stepback(s), and 50% of
       the remaining side yard stepback shall be adequately
       landscaped.  The planting plan shall contain two 24" box
       trees to be planted in the frontyard.

8.     The Architectural Review Board, in its review, shall pay
       particular attention to the project's pedestrian
       orientation and amenities; scale and articulation of
       design elements; exterior colors, textures and materials;
       window treatment; glazing; and landscaping.  

9.     Plans for final design, landscaping, screening, trash
       enclosures, and signage shall be subject to review and
       approval by the Architectural Review Board.


10.    At least one week prior to submittal of landscape and
       irrigation plans to the Architectural Review Board, the
       applicant shall provide area calculations plans which
       demonstrate the project meets required Code landscaping. 

11.    Construction period signage shall be subject to the
       approval of the Architectural Review Board.

12.    Landscaping plans shall comply with Subchapter 5B
       (Landscaping Standards) of the zoning ordinance including
       use of water-conserving landscaping materials, landscape
       maintenance and other standards contained in the
       Subchapter.

13.    Refuse areas, storage areas and mechanical equipment shall
       screened in accordance with SMMC Section 9.04.10.02.130-90.04.10.02.150.  Refuse areas shall be of a size adequate
       to meet on-site need, including recycling.  The
       Architectural Review Board in its review shall pay
       particular attention to the screening of such areas and
       equipment.  Any rooftop mechanical equipment shall be
       minimized in height and area, and shall be located in such
       a way as to minimize noise and visual impacts to
       surrounding properties.  Unless otherwise approved by the
       Architectural Review Board, rooftop mechanical equipment
       shall be located at least five feet from the edge of the
       roof.  Except for solar hot water heaters, no residential
       water heaters shall be located on the roof.

14.    No gas or electric meters shall be located within the
       required front or street side yard stepback areas.  The
       Architectural Review Board in its review shall pay
       particular attention to the location and screening of such
       meters.

Fees

15.    Unless already paid, a Park and Recreation Facilities Tax
       of $200.00 per residential unit shall be due and payable
       at the time of issuance of a building permit for the
       construction or placement of the residential unit(s) on
       the subject lot, per and subject to the provisions of
       Section 6.80.010 et seq. of the Santa Monica Municipal
       Code.

Demolition

16.    Unless otherwise approved by the Community and Cultural
       Services Department and the Planning Division, at the time
       of demolition, any street trees shall be protected from
       damage, death, or removal per the requirements of
       Ordinance 1242 (CCS).


17.    During construction, a security fence, the height of which
       shall be the maximum permitted by the Zoning Ordinance,
       shall be maintained around the perimeter of the lot.  The
       lot shall be kept clear of all trash, weeds, etc.

Construction

18.    Unless otherwise approved by the Department of
       Environmental and Public Works Management, all sidewalks
       shall be kept clear and passable during the grading and
       construction phase of the project.

19.    Sidewalks, curbs, gutters, paving and driveways which need
       replacing or removal as a result of the project as
       determined by the Department of Environmental and Public
       Works Management shall be reconstructed to the
       satisfaction of the Department of Environmental and Public
       Works Management.  Approval for this work shall be
       obtained from the Department of Environmental and Public
       Works Management prior to issuance of the building
       permits.

20.    Vehicles hauling dirt or other construction debris from
       the site shall cover any open load with a tarpaulin or
       other secure covering to minimize dust emissions.

21.    Street trees shall be maintained, relocated or provided as
       required in a manner consistent with the City's Tree Code
       (Ord. 1242 CCS), per the specifications of the Community
       and Cultural Services Division and the Department of
       Environmental and Public Works Management.  No street tree
       shall be removed without the approval of the  Community
       and Cultural Services Division.

22.    A construction period mitigation plan shall be prepared by
       the applicant for approval by the Department of
       Environmental and Public Works Management prior to is-
       suance of a building permit.  The approved mitigation plan
       shall be posted on the site for the duration of the
       project construction and shall be produced upon request. 
       As applicable, this plan shall 1) Specify the names,
       addresses, telephone numbers and business license numbers
       of all contractors and subcontractors as well as the
       developer and architect;  2) Describe how demolition of
       any existing structures is to be accomplished;  3)
       Indicate where any cranes are to be located for
       erection/construction;  4) Describe how much of the public
       street, alleyway, or sidewalk is proposed to be used in
       conjunction with construction;  5) Set forth the extent
       and nature of any pile-driving operations;  6) Describe
       the length and number of any tiebacks which must extend
       under the property of other persons;  7) Specify the
       nature and extent of any dewatering and its effect on any
       adjacent buildings;  8) Describe anticipated construction-related truck routes, number of truck trips, hours of
       hauling and parking location;  9) Specify the nature and
       extent of any helicopter hauling; 10) State whether any
       construction activity beyond normally permitted hours is
       proposed; 11) Describe any proposed construction noise
       mitigation measures; 12) Describe construction-period
       security measures including any fencing, lighting, and
       security personnel;  13) Provide a drainage  plan;  14)
       Provide a construction-period parking plan which shall
       minimize use of public streets for parking;  15) List a
       designated on-site construction manager.

23.    The property owner shall insure any graffiti on the site
       is promptly removed through compliance with the City's
       graffiti removal program.

24.    A sign shall be posted on the property in a manner
       consistent with the public hearing sign requirements which
       shall identify the address and phone number of the owner
       and/or applicant for the purposes of responding to
       questions and complaints during the construction period. 
       Said sign shall also indicate the hours of permissible
       construction work.

25.    A copy of these conditions shall be posted in an easily
       visible and accessible location at all times during
       construction at the project site.  The pages shall be
       laminated or otherwise protected to ensure durability of
       the copy.

Environmental Mitigation

26.    Ultra-low flow plumbing fixtures are required on all new
       development and remodeling where plumbing is to be added. 
       (Maximum 1.6 gallon toilets and 1.0 gallon urinals and low
       flow shower head.)

27.    Parking areas and structures and other facilities
       generating wastewater with significant oil and grease
       content are required to pretreat these wastes before
       discharging to the City sewer or storm drain system. 
       Pretreatment will require that a clarifier or oil/water
       separator be installed and maintained on site.  In cases
       where settleable solids are present (or expected) in
       greater amounts than floatable oil and grease, a clarifier
       unit will be required.  In cases where the opposite waste
       characteristics are present, an oil/water separator with
       automatic oil draw-off will be required instead.  The
       Environmental and Public Works Management Department will
       set specific requirements.  Building Permit plans shall
       show the required installation.  

Miscellaneous CUP Conditions

28.    The building address shall be painted on the roof of the
       building and shall measure four feet by eight feet (32
       square feet).

29.    If any archaeological remains are uncovered during
       excavation or construction, work in the affected area
       shall be suspended and a recognized specialist shall be
       contacted to conduct a survey of the affected area at
       project's owner's expense.  A determination shall then be
       made by the Director of Planning to determine the
       significance of the survey findings and appropriate
       actions and requirements, if any, to address such
       findings.  

30.    Street and/or alley lighting shall be provided on public
       rights of way adjacent to the project if and as needed per
       the specifications and with the approval of the Department
       of Environmental and Public Works Management.

31.    Any lofts or mezzanines shall not exceed 99 square feet
       unless appropriate required parking is supplied.  Such
       areas shall also not exceed 33.3% of the room below unless
       compliance with the district's limits on number of stories
       can be maintained.

32.    No fence, gate, or wall within the required front yard
       stepback, inclusive of any subterranean garage slab and
       fencing, gate, or railing on top thereof, shall exceed a
       height of 42" above actual grade of the property.

33.    A security gate shall be provided across the opening to
       the subterranean garage.  If any guest parking space is
       located in the subterranean garage, the security gate
       shall be equipped with an electronic or other system which
       will open the gate to provide visitors with vehicular
       access to the garage without leaving their vehicles.  The
       security gate shall receive approval of the Police and
       Fire Departments prior to issuance of a building permit.

34.    Mechanical equipment shall not be located on the side of
       any building which is adjacent to a residential building
       on the adjoining lot.  Roof locations may be used when the
       mechanical equipment is installed within a soundrated
       parapet enclosure.

35.    Final approval of any mechanical equipment installation
       will require a noise test in compliance with SMMC Section
       4.12.040.  Equipment for the test shall be provided by the
       owner or contractor and the test shall be conducted by the
       owner or contractor.  A copy of the noise test results on
       mechanical equipment shall be submitted to the Community
       Noise Officer for review to ensure that noise levels do
       not exceed maximum allowable levels for the applicable
       noise zone.

36.    Final building plans submitted for approval of a building
       permit shall include on the plans a list of all permanent
       mechanical equipment to be placed indoors which may be
       heard outdoors.

Validity of Permits

37.    In the event permittee violates or fails to comply with
       any conditions of approval of this permit, no further
       permits, licenses, approvals or certificates of occupancy
       shall be issued until such violation has been fully
       remedied.

38.    Within ten days of Planning and Zoning Division
       transmittal of the Statement of Official Action, project
       applicant shall sign and return a copy of the Statement of
       Official Action prepared by the Planning Division,
       agreeing to the Conditions of approval and acknowledging
       that failure to comply with such conditions shall
       constitute grounds for potential revocation of the permit
       approval.  By signing same, applicant shall not thereby
       waive any legal rights applicant may possess regarding
       said conditions.  The signed Statement shall be returned
       to the Planning Division.  Failure to comply with this
       condition shall constitute grounds for potential permit
       revocation.

39.    This determination shall not become effective for a period
       of fourteen days from the date of determination, or, if
       appealed, until a final determination is made on the
       appeal.  Any appeal must be made in the form required by
       the Zoning Administrator.  The term of approval of this
       permit shall expire one year from the permit's effective
       date, unless a building permit has been issued for the
       project prior to the expiration date.  This approval shall
       also expire if the building permit expires, or the rights
       granted under this approval are not exercised within one
       year of the earliest to occur of the following:  issuance
       of a Certificate of Occupancy or, if no Certificate of
       Occupancy is required, the last required final inspection
       for new construction.  A one year extension of the one
       year period may be permitted if approved by the Director
       of Planning.  Applicant is on notice that extensions may
       not be granted if development standards relevant to the
       project have changed since project approval.

40.    Within thirty (30) days after final approval of the
       project, a sign shall be posted on site stating the date
       and nature of the approval.  The sign shall be posted in
       accordance with the Zoning Administrator guidelines and
       shall remain in place until a building permit is issued
       for the project.  The sign shall be removed promptly when
       a building permit is issued for the project or upon
       expiration of the Conditional Use Permit.

Inclusionary Unit Condition

41.    The developer shall covenant and agree with the City of
       Santa Monica to the specific terms, conditions and
       restrictions upon the possession, use and enjoyment of the
       subject property, which terms, conditions and restrictions
       shall be recorded with the Los Angeles County Recorder's
       Office as a part of the deed of the property to ensure
       that  one  affordable unit is provided and maintained over
       time and through subsequent sales of the property.  An
       inclusionary requirement of thirty percent, excluding any
       density bonus units, under State Government Code Section
       65915, shall apply to the project pursuant to the terms of
       either Ordinance 1519 (CCS) or 1615 (CCS).

       Prior to issuance of a building permit for this project
       the developer shall state in writing his intent to comply
       with either Ordinance 1519 (CCS) or Ordinance 1615 (CCS). 
       The Planning Commission has determined that the project is
       eligible to pay an in-lieu fee under either ordinance. 
       The applicant has already paid a portion of the in-lieu
       fees under the previous project approval.  At the time the
       applicant wishes to obtain a building permit for the
       revised project, if the applicant selects the in-lieu fee
       option under either ordinance, the remainder of applicable
       in-lieu fees shall be due and payable in the form of
       cashier's check, and/ or a letter of credit shall be
       posted if permitted under the applicable ordinance.  The
       developer shall contact Planning staff to determine the
       amount of fee due and/ or the amount that must be posted
       in a letter of credit.  

Special Conditions

42.    The applicant shall provide a revised survey to establish
       the permitted height and number of stories for the project
       based on  Average Natural Grade calculations.  A complete
       building section plan shall be required prior to plans
       submitted to the Architectural Review Board.  This plan
       shall indicate the number of stories, height to top of
       roof and height of any projection based upon Average
       Natural Grade (ANG).  In addition, the plan shall verify
       that the front patio does not exceed 3' above ANG.  

43.    The plans shall be revised to comply with Ordinance 1507
       (CCS) and 1528 (CCS).  These plans shall provide a 4'
       additional average sideyard stepback for both the north
       and south elevations.  Plans shall be revised prior to
       submission to the Architectural Review Board.  

Attachments (available in the City of Santa Monica City Clerk's
Office):

A.  Appeal dated 10/24/95
B.  STOA dated 10/11/95
C.  Planning Commission Staff Report dated 10/11/95
D.  Planning Commission Minutes 10/11/95
E.  Public Notice 
F.  Letter to City Council dated February 26, 1996
G.  Letter from Mehrdad Farivar dated April 30, 1996
H.  Project Plans