City Council Meeting 8-8-00 Santa Monica, California

TO: Mayor and City Council

FROM: City Attorney's Office

SUBJECT: An Interim Ordinance of the City Council of the City of Santa Monica Extending and Amending the Construction Rate Program for Multi-Family Development in All Multifamily Residential Districts and the Design Compatibility Permit Requirement for the Development of Condominiums and Other Multi-Family Housing and Declaring the Presence of an Emergency

Introduction

On March 7, 2000, the City Council adopted an emergency interim ordinance to establish a design compatibility permit for condominiums and to impose a construction rate program in multi-family zoning districts. This ordinance was extended on April 11, 2000. The term of this extension is eighteen months and is designed to provide staff with the time necessary to complete the process required for implementing a permanent ordinance.

On or about May 17, 2000, a lawsuit was filed against the City challenging the construction rate program. Petitioners' principal contention is that the City failed to comply with the California Environmental Quality Act ("CEQA") prior to adopting the construction rate program.

This office believes that the program is valid as currently drafted. However, in the interest of resolving the dispute and to codify current administrative practice, this office recommends that the City Council adopt the proposed emergency, interim ordinance which, as detailed below, makes minor modifications and clarifications to the current construction rate program. The proposed ordinance will expire on November 11, 2001 unless subsequently extended.

Discussion

The current construction rate program allows only one construction or substantial remodel project per block in multi-family districts and this project must also not be within a five hundred-foot radius of another construction project subject to this program. This restriction applies for eighteen months after issuance of a building permit, after which time another project may begin construction in the defined area. This program only applies to projects involving two or more units (in multi-family districts). It also excludes certain types of projects. Included among these exceptions are projects which will be developed on sites containing structures that are uninhabitable and which cannot be rendered habitable in an economically feasible manner.

The proposed ordinance would make the following minor modifications to the current interim ordinance:

• Eliminate the requirement that only one construction project be allowed per block. The proposed ordinance would continue to authorize only one construction project within a five hundred foot radius of another construction project. This radius is the same radius used for public notification of proposed developments and covers the geographic area likely to be impacted by development.
• The eighteen (18) month restriction on the issuance of new building permits within the 500 foot radius would be reduced to fifteen (15) months. City data demonstrates that the mean time period between the date a permit is issued and the date a project receives final inspection is fifteen (15) months. The proposed ordinance simply eliminates the three month respite period between projects established by the current program.
• The Building Officer would be authorized to issue another building permit within the five hundred foot radius even if fifteen (15) months have not lapsed since the previous building permit was issued if the owner of the previously permitted project has obtained a certificate of occupancy for the project. As discussed above, the fifteen month restriction was based on historical City data. If a specific project should be completed more quickly than the historical mean, another project would also be allowed to commence more quickly.
• A project would not be subject to the requirements of this program if the current use of the property is not economically viable. This would simply clarify an existing provision in the current ordinance.
• If an owner claims that the project is exempt from the program because the project will be developed on a site which either contains uninhabitable structures which cannot be rendered habitable or the current use of the property is otherwise not viable, then City staff would be required to determine the validity of the owner's claims within ninety (90) days after the owner's application for an exemption, submitted on a form prepared by the City, is deemed complete. This provision would merely codify staff's intended practice.

As this list of revisions demonstrates, the proposed ordinance would retain all the key substantive provisions of the current program. The minor modifications should not undercut the goal of this program or reduce its effectiveness.

Financial/Budgetary Impact

The recommendation presented in this report will have no budget or financial impacts.

Recommendation

It is respectfully recommended that the accompanying emergency interim ordinance be adopted.

Prepared By: Marsha Jones Moutrie, City Attorney

Barry A. Rosenbaum, Senior Land Use Attorney

Attachment: Ordinance