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HomeMy WebLinkAbout01-ATTACHMENT A (CITY COUNCIL REPORT APRIL 21, 2015) ATTACHMENT A APRIL 21, 2015 CITY COUNCIL REPORT MEETING DATE TO: FROM: SUBJECT: SUMMARY: Agenda Item AGENDA REPORT City Man M ager H� City Finance Director N/A APRIL 21, 2015 JEFFREY C. PARKER, CITY MANAGER ELIZABETH A. BINSACK, COMMUNITY DEVELOPMENT DIRECTOR CODE AMENDMENT 2015 -001 (ORDINANCE NO. 1454), SECOND RESIDENTIAL UNITS IN THE CULTURAL RESOURCES DISTRICT The project is a proposed amendment to the Tustin City Code that would provide new standards for second residential units in the Cultural Resources (CR) District and prohibit new accessory buildings used as guest quarters in the CR District. On March 24, 2015, the Planning Commission adopted Resolution No. 4277 (renumbered Resolution No. 4280), recommending that the Tustin City Council adopt Ordinance No. 1454, approving Code Amendment 2015 -001. (Applicant: City of Tustin) RECOMMENDATION: That the City Council: 1) Introduce and have first reading of Ordinance No. 1454, approving Code Amendment (CA) 2015 -001 by amending Article 9 Chapter 2 of the Tustin City Code (TCC) to provide new standards for second residential units in the CR District and prohibit new accessory buildings used as guest quarters in the CR District, and set a second reading for the next City Council meeting; and 2) Provide direction to staff to take the following actions regarding permit parking, residential privacy, and illegally converted structures in the CR District: a. Conduct an analysis and public workshop to explore the potential establishment of permit parking on all residential streets within the CR District; b. During the plan check process, examine ways to respect residential privacy for properties adjacent to any proposed second floor residential project; and, c. Continue the practice of taking a predominantly reactive approach to the enforcement of illegally constructed or converted structures; or take other action as deemed appropriate. City Council Report April 21, 2015 CA 2015 -001 Page 2 FISCAL IMPACT: CA 2015 -001 is a City- initiated project. There is no direct fiscal impact to the General Fund. CORRELATION TO THE STRATEGIC PLAN: The proposed project furthers the objectives of the following Strategic Plan goals: • Goal A: Economic and Neighborhood Development — The proposed project would enhance the vibrancy and quality of life in the community. • Goal B: Public Safety and Protection of Assets — The proposed project would ensure Tustin is an attractive, safe and well maintained community in which people feel pride. APPROVAL AUTHORITY: The TCC Section 9295g authorizes the City Council to adopt Zoning Code amendments following a recommendation by the Planning Commission and a public hearing. BACKGROUND AND DISCUSSION: The TCC regulates the establishment of guest quarters and second residential units within Single - Family Residential (R1) zoned properties. The following provides a general summary of the requirements: • A guest quarter is defined as "an attached or detached building or room that provides living quarters for guests and (a) contains no kitchen or cooking facilities; (b) is clearly subordinate and incidental to the principle residence on the same building site; and (c) is not rented or leased, whether compensation is direct or indirect." No additional parking spaces are required for guest quarters. The establishment of guest quarters requires the approval of a Conditional Use Permit (CUP) and includes the requirement for a deed restriction to ensure guest quarters are not rented and to inform future owners of the applicable limitations. • A second residential unit is defined as "a building or portion thereof designed for residential use on a lot developed with a legal conforming single - family dwelling." A second residential unit can have kitchen and can be rented out; however, two (2) additional parking spaces need to be provided. Over the years, many property owners have expressed their desire to have second residential units in Old Town which they can rent out for additional income or provide housing options to their grown children, parents, and /or friends and relatives; however, properties smaller than 12,000 square feet in size are not currently eligible for second residential units. It was also expressed that property owners do not like deed City Council Report April 21, 2015 CA 2015 -001 Page 3 restrictions to be placed on their title and feel that the requirement for two (2) additional parking spaces for second residential units is too onerous. In addition, it was noted that there are many structures in Old Town that either have been illegally converted to second residential units or that the property owner wishes to convert an existing accessory structure into a second residential unit to generate additional income. Public Workshops In response to the public's interest in having and renting second residential units on lots of various sizes in Old Town Tustin, the City conducted public workshops on the subject of second residential units in Old Town Tustin on February 20, 2013, March 12, 2013, and March 11, 2014. Approximately 40 members of the public attended at least one (1) of these workshops. The public provided input during the workshops and through the completion of 25 questionnaires. The input may be summarized as follows: • Existing zero -lot -line garages should remain. • Allow carports instead of requiring garages. • Street parking is already congested; adding more units makes congestion worse. • Garages often are not used for parking. • Permit parking should be implemented. • Second residential units often intrude on neighbor privacy. • Three (3) or more residential units on a single - family lot should be considered. • How the City considers construction that often pre- exists Zoning /Building Codes. • Why limit proposed amendments to the Cultural Resources Overlay District? • Whether variances would be allowed. • Limitations on paved /concrete areas. • Old Town aesthetics, character, and landscaping should be maintained. • Second residential units should be limited to one story and be accessory to the main residence. • Small guest houses are compatible with Old Town. • No additional parking is needed for guest houses. • Overcrowding concerns since more units would be permitted in Old Town. • Allow second residential units on larger lots only. • Reduce allowable lot coverage. • Limit the massing of the second residential unit. Based on the public input received, staff developed alternative concepts at the March 2014 workshop for the Commission's consideration. These concepts included: • Limit all second residential units to efficiency units /studios (i.e. up to 600 sq. ft.). • Require one (1) covered parking space for the second residential unit. • Allow carports or garages for second residential units. • Prohibit additional detached guest rooms in Old Town. City Council Report April 21, 2015 CA 2015 -001 Page 4 Proposed Code Amendment The proposed CA 2015 -001 would provide new standards for second residential units in the CR District, allow new second residential units on any residentially zoned lot in the CR District regardless of lot size, and prohibit new accessory buildings used as guest quarters in the CR District. The standards for second residential units in all other areas of the City are not proposed to be amended, and all second residential units in the City would continue to be allowed ministerially without discretionary review or a public hearing. The existing and proposed standards for second residential units in the CR Zoning District are summarized in the following table. Proposed changes and additions to the existing citywide standards for second residential units are shown in bold print. CR District Second Unit Development Standards Existing Proposed (Ordii (Ordinance , No Conditional Use Permit required No Maximum height 30 feet 30 feet Minimum building site 12,000 square feet None Maximum overall lot coverage 50 percent 50 percent Maximum lot coverage for the 30% of rear yard and None second unit 30% of side yard Minimum front yard setback 50 feet - (detached) 50 feet- (detached) 20 feet - (attached) 20 feet - (attached) 50 feet Minimum front yard setback for off- 50 feet street parking Minimum side yard setback 10 feet- corner 10 feet - corner 5 feet - interior 5 feet - interior 5 feet One car garage or carport Minimum rear yard setback 5 feet Minimum off - street parking Assigned two -car garage 50% of primary single - family Maximum floor area of second unit 10% of lot area dwelling, not to exceed 600 square feet Yes Impacts not permitted Architectural review Yes Impact to historic structures on California Register Impacts not permitted Concurrent or subsequent Yes Yes construction required Entrances to the rear and not visible Yes Yes from public right -of -way (attached and detached) (attached and detached) Owner occupancy No No City Council Report April 21, 2015 CA 2015 -001 Page 5 A�JALY�I�: State Law related to Second Residential Units On September 29, 2002, the Governor approved Assembly Sill 1866, which amended Government Code Section 65852.2, and requires applications for second residential units to be considered ministerially without discretionary review or hearing. The purpose of the requirement is to facilitate the provision of affordable housing throughout California. Government Code Section 65852.2 allows local agencies: to impose standards on second residential units that include, but are not limited to, parking, height, setback, lot coverage, architectural review, maximum size of a unit, and standards that prevent adverse impacts on any real property that is listed on the California Register of Historic Places; to provide that second residential units do not exceed the allowable density for the lot upon which the second residential unit is located; and, to designate areas within the jurisdiction of the local agency where second residential units may be permitted. Pursuant to Government Code Section 65852.2.b.5, no local agency shall adopt an ordinance which totally precludes second residential units unless the ordinance contains findings: 1) Acknowledging that the ordinance may limit housing opportunities of the region; and, 2) Identifying that specific adverse impacts on the public health, safety, and welfare that would result from allowing second units within single- family and multifamily zoned areas justify adopting the ordinance. Government Code Section 65852.2 allows local agencies to regulate the size of the second residential unit, provided that at least an efficiency unit can be constructed in compliance with local development standards. As described in the Health and Safety Code, an efficiency unit must be a minimum of 150 square feet in size. Although agencies may allow second residential units that are as large as, or larger than, primary residential units, it is important to note that larger second residential units would tend to be less affordable than smaller second residential units, thereby defeating the purpose of Assembly Sill Igo. 1866. Single - Family Residential Zoned Properties in CR District There are 194 R1 properties in the CR District (see Figures 1 and 2). Approximately 23 percent, or 45 of the 194 properties, are currently eligible for second residential units based on their lot size of at least 12,000 square feet. If the proposed code amendment City Council Report April 21, 2015 CA 2015 -001 Page 6 is approved, 149 additional properties would be eligible for second residential units in the CR District. However, based on the placement of the existing single - family dwelling and the configuration of the property, it may not be practical to construct a second residential unit on every eligible property. Lot Suzes iin the CR District Less than 7,500 square feet 33 Exactly 7,500 square feet 46 7,501 -9,000 square feet 31 9,001 - 11,999 square feet 39 12,000 square feet or greater 45 Figure 1 - CIS District City Council Report April 21, 2015 CA 2015 -001 Page 7 Figure 2 - Underlying Zoning and the CR District Maximum Floor Area To minimize the potential aesthetic impacts associated with a significant number of additional dwelling units in the CR District, it is proposed that second residential units be ancillary and subordinate to the primary single- family dwelling and that the size of each second residential unit be limited to 600 square feet in size (see Sample Floor Flans).. This maximum size is equivalent to the size of a three -car garage and is not anticipated to change the character of the CR District. The staff recommendation to allow second residential units of up to 600 square feet is also based on the unique historic development pattern and character of Old Town and the size, shape, and configuration of many of the properties and residences within the CR District. Larger second residential units with multiple bedrooms within the CR District, along with their needed larger parking accommodations, could compromise the unique character of Old Town, and particularly its single- family neighborhood. Based on the size limitation of 600 square feet, it would be appropriate to require one (1) additional parking space for the second residential unit, rather than the two (2) parking spaces currently required by the TCC. During the past thirty (30) years, two (2) second residential units have been approved in the CR District. One (1) is a residence consisting of 1,450 square feet that was built in City Council Report April 21, 2015 CA 2015 -001 Page 8 1988. The other second residential unit was approved in 2014, but has not been built. It is proposed to be 700 square feet in size, with two (2) garage parking spaces. However, the property owner has indicated a desire to take advantage of the proposed ordinance and to redesign the project by reducing the overall living space to 600 square feet and by reducing the two (2) garage parking spaces to one (1) garage parking space. r -1 Q Covered or - RoP ,ir Porch Scruaried Parch lox 6 _ 2G G L Kitcha n `« ! 12 G 2 Bedroom 12 n 92 -6 LMng Room Bonus Room _ - re rFV'd jiT Cat ich J :.; 7 _ C SampQ a Moor Mans — Second ResWentW Unfts (approx. 500 square feet) Sarnp a F oo r Man — Second ResWeQ- tW Unh (approx. 500 square feet •• sta 6o) Parking The proposed C4 requires one (1) covered space either in a garage or carport for the second residential unit. The smaller allowable size of the second residential unit and its associated single car garage or carport will ensure that these additional structures on City Council Report April 21, 2015 CA 2015 -001 Page 9 the property do not negatively impact adjacent properties or the character of the CR District. No accessory buildings used as guest quarters in CR District The proposed CA 2015 -001 would prohibit the construction of new accessory buildings used as guest quarters in the CR District. It is proposed that new detached accessory guest rooms /quarters no longer be allowed in the CR District because many of these guest rooms, including some approved through the CUP process, have been illegally rented out and equipped with cooking facilities, without providing the on -site parking spaces required of a second residential unit. Since 1982, nine (9) accessory guest quarters in the CR District have been approved through the CUP process. These guest quarters range in size from 564 to 1,320 square feet, with an average of 822 square feet. Three (3) of the nine (9) CUPs were approved for existing structures, and two (2) of the approved guest quarters were never constructed. The average size of the four (4) newly constructed and completed accessory guest quarters is 905 square feet. If proposed CA 2015 -001 is approved as presented, the existing CUPs for the approved accessory guest quarters would remain in effect and the existing approved accessory guest quarters would become legal nonconforming uses. These existing guest quarters cannot be rented or have kitchens. However, if the existing guest quarters are in compliance with the proposed new standards for second residential units or if modifications could be made to achieve compliance with the new standards, it would be possible for the owners to request that the accessory guest quarters be classified as second residential units and for the conditions associated with the CUP to be removed. Any applicable deed restrictions pertaining to cooking facilities and renting or leasing of the guest quarters could be reversed by recording new deed restrictions following the City's approval of the conversion of the guest quarters to a second residential unit. Community Impacts and Implications The proposed CA 2015 -001 would have impacts and implications. The following are consequences of additional second residential units in the CR District: • More residences /residents in Old Town. • Greater residential density on R1 properties in Old Town. • More parked vehicles and traffic in Old Town. • Less street parking for visitors and guests in Old Town. • Greater demand on local parks and schools. • Change in character from mostly single - family to multiple family in Old Town. • More affordable housing in Old Town. • Extra income for Old Town property owners. • Potential for increased property values. City Council Report April 21, 2015 CA 2015 -001 Page 10 • More housing opportunities for seniors, young adults, the disabled, etc. The following discussion summarizes the most significant implications applicable to properties within the CR District as a result of CA 2015 -001: • Existing accessory guest quarters in the CR District that were approved by the City would become legal non - conforming. The associated CUPs and deed restrictions would remain in effect. These guest quarters may not have kitchens and may not be rented or leased unless they meet all of the development standards for a second residential unit and are approved by the City as second residential units. • Existing second residential units in the CR District that were approved by the City and are larger than 600 square feet in size would become legal non - conforming. Existing second residential units in the CR District that were approved by the City and are 600 square feet in size or smaller would continue to be legal conforming. • Existing non - permitted accessory guest quarters and second residential units in the CR District could become legal second residential units if all development standards are met and compliance with the Building Code can be achieved. • New accessory buildings used as guest quarters would be prohibited in the CR District. • New second residential units of up to 600 square feet in size would be allowed on all single - family residential lots in the CR District that are zoned R1. Housing Element Compliance /Regional Housing Needs The provision for additional second residential units supports the Housing Element of the Tustin General Plan by providing more opportunities for affordable housing and by meeting the need for a variety of housing types that serve the diverse socio- economic needs of the community's residents. The City has a Regional Housing Needs Assessment (RHNA) allocation of 1,227 housing units for the 2014 -2021 Planning Period. During 2014, the first year of the current planning period, permits were issued for a total of 758 housing units, all of which are located in Tustin Legacy. The following table summarizes the number of units by income category and the RHNA percentage achieved. As demonstrated by the table, the City has made significant progress in the first year of the current planning period in providing affordable housing. The proposed CA 2015 -001 provides for an additional 149 potential affordable housing units in the CR District, thereby diversifying the opportunities for affordable housing in Tustin. City Council Report April 21, 2015 CA 2015 -001 Page 11 City of Tustin Housing Units Constructed and Housing Units Entitled From January 1, 2014 through December 31, 2014 Number of Number of Approved Percentage of Income Level Units Units w/ Units Total RHNA RHNA Constructed Permits Issued Very Low 0 88 88 88 283 31.1% (0 -50% MR) Low Income (51- 0 73 73 73 195 37.4% 80% MR) Moderate Income 0 101 101 101 224 45.1% (81 -120° /,MFI) Upper Income 0 496 496 496 525 94.5% Total 0 758 758 758 1,227 rare mecian ramuy income Source: City of Tustin Building Division, City of Tustin Planning Division, City Manager Office, Southern California Gas Company Utility Releases PLANNING COMMISSION ACTION: Planning Commission Action on February 24, 2015 CA 2015 -001 was properly noticed for a February 24, 2015, public hearing, at which time the Planning Commission opened the public hearing, staff provided a presentation, and several members of the public provided testimony (see Attachment A — Minutes of February 24, 2015, Planning Commission meeting). The Planning Commission (with the exception of Chair Thompson who recused himself) deliberated the matter and considered three (3) motions. Commissioner Altowaiji made a motion to reject the proposed ordinance and to direct staff to prepare a revised ordinance exempting 12,000 square foot lots and to analyze additional square footage requirements. This first motion failed due to a lack of a second to the motion. Chair Pro Tern Lumbard then moved to adopt Resolution No. 4277 and the motion was seconded by Commissioner Kozak, with Commissioners Altowaiji and Smith opposed, so the motion failed 2 -2 -1. It was then moved by Commissioner Kozak to continue the item to March 24, 2015, to provide adequate time for staff to provide an analysis based on alternative proposals from Commissioners Altowaiji and Smith. This third motion was seconded by Commissioner Altowaiji and passed 3 -1 -1, with Chair Pro Tern Lumbard opposed. Planning Commission Action on March 24, 2015 On March 24, 2015, the Planning Commission opened the public hearing, staff provided a presentation, and two (2) members of the public provided testimony (see Attachments B — March 24, 2015, Planning Commission Report; C — Minutes of March 24, 2015, Planning Commission meeting; and D - Letter dated March 20, 2015, from the Tustin Preservation Conservancy). City Council Report April 21, 2015 CA 2015 -001 Page 12 Following the public hearing, the Planning Commission considered all public input, staff's recommendation, the alternative proposals from Commissioners Altowaiji and Smith; deliberated the proposed CA 2015 -001; and, adopted Resolution No. 4277 (renumbered Resolution No. 4280), which passed 3 -1 -1, with Commissioner Altowaiji opposed, recommending that the City Council approve the proposed CA 2015 -001 (Attachment E). Planning Commission Concerns In addition to the proposed CA 2015 -001, the Planning Commission expressed concerns pertaining to street parking, residential privacy, and structures illegally converted into living quarters in Old Town and requested that staff forward these concerns to the City Council for consideration and direction. • Parking impacts According to residents of the CR District, who spoke at the workshops and Planning Commission meetings related to second residential units or communicated directly with staff, many vehicles are parked on the residential streets adjacent to properties with existing rental units and in locations close to businesses and multiple family residences (see Attachment F — Email dated February 27, 2015, and photographs). If the proposed CA 2015 -001 is approved, it is anticipated that street parking may be further impacted in the CR District. Permit parking was discussed as one of the ways to alleviate parking congestion in the residential areas of the CR District and should be explored. • Privacy Some members of the public suggested that additional setback requirements and height limits be imposed on new second residential units to maintain a higher level of privacy between adjacent properties. These stricter standards are not recommended, because there are many existing two -story residences in the CR District, and the proposed CA 2015 -001 would apply the same side and rear yard setbacks and height restriction to second residential units as are applied to the primary single - family dwelling. In addition, some existing guest quarters and other structures that could otherwise be converted to second residential units may be disqualified if additional standards were imposed. However, privacy is one of the factors considered during the design review /plan review process and can also be achieved through other means, including landscaping. • Illegal living quarters In response to complaints from the public and as a result of property inspections such as Mills Act inspections, the City has initiated enforcement investigations related to structures that were illegally built as living quarters or structures that were illegally converted to living quarters. Some of these units were built or converted in recent years; however, many could have been built or converted in the distant past. The City has traditionally taken a more reactive approach to the enforcement of illegal structures versus a proactive City Council Report April 21, 2015 CA 2015 -001 Page 13 approach. The Planning Commission noted its concerns with not proactively addressing these units and structures and desired to convey its concerns to the City Council. The proposed CA 2015 -001 does not, and is not intended to, comprehensively address these three (3) broader issues as they pertain to the CR District and the Old Town area as a whole, and therefore, staff recommends that the City Council direct staff to take the following actions: 1) Conduct an analysis and public workshop to explore the potential establishment of permit parking on all residential streets within the CR District; 2) During the plan check process, examine ways to respect residential privacy for properties adjacent to any proposed second floor residential project; and, 3) Continue the practice of taking a predominantly reactive approach to the enforcement of illegally constructed or converted structures; or take other action as deemed appropriate. PUBLIC NOTICE, CHAMBER OF COMMERCE AND STAKEHOLDER REVIEW: A public notice was published in the Tustin News on April 9, 2015, informing the public of the City Council public hearing for proposed CA 2015 -001. In addition, approximately 660 notices were mailed to all owners of property within the CR District and within 300 feet of the CR District. A copy of the staff report and proposed CA 2015 -001 were also forwarded to the Chamber of Commerce, the Tustin Area Historical Society, the Tustin Preservation Conservancy, and two (2) local realtor associations prior to the City Council's hearing on the matter. ENVIRONMENTAL: The proposed CA 2015 -001 is exempt from further environmental review pursuant to the provisions of the California Environmental Quality Act (CEQA), as found in Public Resources Code Section 21080.17. City Council Report April 21, 2015 CA 2015 -001 Page 14 CONCLUSION: Proposed CA 2015 -001 would provide new standards for second residential units in the CR District, allow new second residential units on any residentially zoned lot in the CR District regardless of lot size, and prohibit new accessory buildings used as guest quarters in the CR District, while protecting the unique character of Old Town, and particularly its single - family neighborhood. Accordingly, staff recommends that the City Council approve CA 2015 -001. Scott Reekstin Elizabeth A. Binsack Principal Planner Director of Community Development Attachments: A. February 24, 2015 Planning Commission Minutes B. March 24, 2015 Planning Commission Report C. March 24, 2015 Planning Commission Minutes D. Letter dated March 20, 2015, from the Tustin Preservation Conservancy E. Planning Commission Resolution No. 4280 (formerly No. 4277) F. Email dated February 27, 2015, and photographs G. Draft Ordinance No. 1454 (Code Amendment 2015 -001) H. Existing Tustin City Code Sections 9223 and 9252j with redlined changes