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1 MEETING DATE: December 14, 2016 PREPARED BY: Diane S. Langager Principal Planner MANAGEMENT CONSULTANT: Steve Chase DEPARTMENT: Planning & Building CITY MANAGER: Karen P. Brust SUBJECT: City Council authorization to initiate amendments to the Encinitas Municipal Code regarding regulations for accessory dwelling units in residential zones, and consider directing staff on whether the City should sponsor a bill to provide legislative relief in applying the uniform construction codes to unpermitted units. Case No POD. RECOMMENDED ACTION: Council take the following actions: 1. Adopt Resolution No , entitled Initiating an Amendment to the Encinitas Municipal Code and Local Coastal Program Regarding Regulations for Accessory Dwelling Units and Junior Accessory Dwelling Units in Residential Zones (Attachment CC-1). 2. Provide staff direction as to whether the City should sponsor a bill to provide legislative relief for flexibility in applying the uniform construction codes to unpermitted units appropriate for legalization. STRATEGIC PLAN: The action before the Council is to consider initiating proposed amendments to the Encinitas Municipal Code (EMC) regarding regulations for accessory dwelling units (ADUs) and to consider sponsoring a bill to provide legislative relief to construction codes for unpermitted units, which coincides with the Community Planning Focus Area of the City s Strategic Plan which promotes pursuing a range of diverse housing opportunities balanced throughout the community. FISCAL CONSIDERATIONS: There is no direct fiscal impact associated with the staff recommendation. Staff time required for the work effort is included in the adopted operations budget for the Planning & Building Department. However, bill sponsorship would trigger an additional cost given the workload POD Item 8K 1 of 49

2 involved. Final cost would depend on progress of the bill in the Legislature, but the City could expect to pay $7,000 to our lobbyist for a bill that makes it as far as to the Governor s desk. BACKGROUND: Government Code Section provides that local agencies may adopt ordinances to regulate second units, consistent with certain provisions. The Governor recently signed into law three bills that would streamline the process for the creation of second units and/or facilitate junior units. The three bills are SB 1069 (Bloom), AB 2299 (Wieckowski) and AB 2406 (Thurmond), included herein for review as Attachment CC-4, CC-5 and CC-6 respectively. SB 1069 and AB 2299 now make compliance with Government Code Section mandatory and any local ordinance that is inconsistent with its provisions shall be null and void effective on January 1, Furthermore, state law shall apply unless or until the local agency adopts an ordinance consistent with the new law. Section 1.5 of AB 2299, reconciles both bills, and incorporates the amendments to Section of the Government Code proposed by both bills. AB 2406 sets forth that local agencies may, by ordinance, provide for the creation of junior accessory dwelling units (JADUs). JADUs are accessory dwelling units, 500 square feet in size or smaller, that are located within an existing single family residence within a single-family zone. AB 2406 was adopted as an urgency statute and went into immediate effect upon enactment by the Governor on September 28, Cities have the choice whether they adopt an ordinance specific to JADUs or treat them as accessory dwelling units. Council considered the interim provisions of the Affordable Unit Policy (AUP) Program and the expiration date of the Housing Certification Program (HCP) 1 units in May of At such time, Council extended the expiration date for all existing HCP units an additional ten years to June 16, 2026 and extended the Interim Provisions of the AUP Program for one year to June 16, Additionally, Council directed staff to pursue legislative relief at the state level for flexibility in applying the uniform construction codes to unpermitted units. ANALYSIS: SB 1069 and AB 2299 SB 1069 and AB 2299 rename second units as ADUs, and make significant changes to local authority to regulate these units. The primary changes are summarized below: Parking Prohibits the imposition of parking standards under specific circumstances and when required, may not exceed one parking space per unit or per bedroom. 1 The AUP and HCP programs provide amnesty to property owners for unpermitted units. The programs are designed to maintain the rental stock and provide affordable housing. More information on these programs can be found in the Council agenda report, Item 10B, of May 18, 2016 found at: POD Item 8K 2 of 49

3 Types and Size of Units - The maximum permitted size of ADUs is significantly increased 2. Units can be attached to the principal dwelling, located within the living area or detached. Approval Process and Timelines - Approval process must be ministerial (without discretionary review) and must occur within 120 days of receipt of application. Water and Sewer Utility Fees - Places restrictions on water and sewer connection and capacity fees. Fire Sprinklers - Eliminates the requirement for fire sprinklers, if the main residence is not sprinklered. AB 2406 It is not mandatory for cities to implement AB 2406; it was developed to allow local jurisdictions the ability to establish ordinances that create secure income for homeowners and secure housing for renters. An ordinance that provides for JADUs may: Limit the number of JADUs to one per existing single family residence in a single family zone; Require owner-occupancy of the single family residence; Prohibit the sale of the JADU separate from the sale of the single family residence; Require the inclusion of an existing bedroom in the JADU; Require a separate entrance; and Require an efficiency kitchen. Additionally, no fees or regulations may be imposed on a single family residence that contains a JADU unless such fees or regulations are imposed on single family residences generally. No additional parking may be required. The approval process must be ministerial (without discretionary review) and must occur within 120 days of receipt of application. A detailed summary of the bills, prepared by the League of California Cities, is included herein for review as Attachment CC-2 Existing Regulations The City of Encinitas currently maintains provisions for ADUs as found in Encinitas Municipal Code (EMC) Section T. One attached or detached ADU may be permitted on parcels zoned for residential single-family dwellings subject to specific criteria. The provisions for ADUs are included herein for review as Attachment CC-3. 2 Under existing City regulations, the maximum permitted ADU size is 750 sq. ft. or 30% of the principal residence, whichever is less (attached or detached); under the new State law the maximum size for attached ADUs is 1200 sq. ft. or 50% of the principal residence, whichever is less, and 1200 sq. ft for detached ADUs POD Item 8K 3 of 49

4 Process The EMC is a component of the Local Coastal Program (LCP); therefore, the LCP would also be amended as part of the application. The EMC and LCP amendments would be subject to a public hearing process. The Planning Commission initially considers the proposed changes and makes recommendations to the City Council for consideration and formal action. If the City approves the amendment, the proposed LCP amendment must be submitted to the California Coastal Commission for review and adoption. Public Notice This initiation of an amendment to the EMC does not require legal notice or a Citizen s Participation Program. However, subsequent to initiation, legal notices will be required as part of the public review process. As a courtesy, notice was provided by the Planning and Building Department s Internet site via e-project Source. AUP/HCP and Legislative Relief To garner legislative relief for flexibility in applying the uniform construction codes to unpermitted units, provide staff direction as to whether the City should sponsor a bill. ENVIRONMENTAL CONSIDERATIONS: This action is exempt from the California Environmental Quality Act pursuant to CEQA Guidelines Section 15378(b)(5), which exempts organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment. The action before the Council is to consider initiating proposed amendments to the EMC regarding regulations for accessory dwelling units. Any amendments to the EMC, will require compliance with CEQA prior to decision by Council. Initiation of this amendment does not commit the Council to a future decision. ATTACHMENTS: CC-1 Resolution No , Entitled Initiating an Amendment to the Encinitas Municipal Code and Local Coastal Program Regarding Regulations for Accessory Dwelling Units and Junior Accessory Dwelling Units in Residential Zones CC-2 Detailed summary of SB 1069 (Bloom), AB 2299 (Wieckowski) and AB 2406 (Thurmond), prepared by the League of California Cities CC-3 EMC Code Section T CC-4 SB 1069 (Bloom) CC-5 AB 2299 (Wieckowski) CC-6 AB 2406 (Thurmond) CC-7 Minutes of the May 18, 2016 City Council Meeting regarding the AUP program and the HCP POD Item 8K 4 of 49

5 ATTACHMENT CC-1 Draft Resolution No , Entitled Initiating an Amendment to the Encinitas Municipal Code and Local Coastal Program Regarding Regulations for Accessory Dwelling Units and Junior Accessory Dwelling Units in Residential Zones Item 8K 5 of 49

6 RESOLUTION NO A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ENCINITAS, CALIFORNIA, INITIATING AN AMENDMENT TO THE ENCINITAS MUNICIPAL CODE AND LOCAL COASTAL PROGRAM REGARDING REGULATIONS FOR ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS IN RESIDENTIAL ZONES (CASE NO POD; CITY-WIDE) WHEREAS, SB 1069 (Bloom), AB 2299 (Wieckowski) and AB 2406 (Thurmond) were recently signed into law to streamline the process for the creation of second units and/or facilitate junior units; WHEREAS, the City Council finds that the City s Municipal Code and the Local Coastal Program provisions related to accessory dwelling units, as set forth in Encinitas Municipal Code Section T, need to be reviewed and amended to address changes in state law and to consider the allowance for junior accessory dwelling units; and WHEREAS, City Council authorization by resolution is required to initiate Municipal Code and Local Coastal Program amendments pursuant to Section B of the Encinitas Municipal Code (EMC). NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ENCINITAS, CALIFORNIA, DOES HEREBY FIND, DECLARE, DETERMINE, ORDER, AND RESOLVE AS FOLLOWS: SECTION 1. That the above recitations are true and correct; SECTION 2. This action is exempt from environmental review pursuant to CEQA Guidelines Section 15378(b)(5), which exempts organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment. The action before the Council is to consider initiating proposed amendments to the Encinitas Municipal Code regarding regulations for accessory dwelling units. Any amendments to the Municipal Code will require compliance with CEQA prior to decision by Council. SECTION 3. That this Resolution initiates the required Municipal Code and Local Coastal Program Amendments, pursuant to EMC Section B; and SECTION 4. That this Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED this 14 th day of December, 2016 by the following vote, to wit: AYES: NAYS: ABSENT: ABSTAIN: ATTEST: Catherine S. Blakespear, Mayor City of Encinitas Kathy Hollywood, City Clerk Item 8K 6 of 49

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47 ATTACHMENT CC-7 Minutes of the May 18, 2016 City Council Meeting regarding the AUP program and the HCP Item 8K 47 of 49

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