HomeMy WebLinkAbout22 LEGISLATIVE REPORTS (RHNA & AQMD) 01-15-07AGENDA REPORT MEETING DATE: JANUARY 15,2007 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: CITY CLERK'S OFFICE SUBJECT: LEGISLATIVE REPORTS SUMMARY: Attached are the following legislative items for discussion by the City Council. . Senate Bill 12: Regional Housing Needs Assessment (RHNA) by Lowenthal. Staff is recommending support of Senate Bill with the following amendments: additional appeals be allowed so that cities do not receive allocations that cannot be appealed; and housing need allocation plan should not be linked to the Regional Transportation Plan (RTP), the RTP is land-use based and RHNA is a needs-based program. . AQMD - Proposed Emission Growth Management Control Measure. Staff is recommending adoption of attached Resolution No. 07-14 opposing 2007 Air Quality Management Plan that would impose an additional fee on larger development projects when additional project-specific mitigation is otherwise infeasible. Staff is continuing to monitor the following and will report back to Council: ./ ACA 2: California Constitutional Amendment - Eminent Domain (Walters). This proposal was recently introduced and has not been assigned to a committee. Staff will have a report concerning this proposal for the February 5, 2007 meeting. ./ Urban Casinos - There are several state and federal bills being considered pertaining to urban casinos. Staff will have a report concerning this proposal for the February 5, 2007 meeting. ./ Area Code 714 Split: Public Utilities Commission is continuing to hold a series of public meetings to discuss which of the 4 alternatives will be adopted. Council will be kept abreast as to developments. AGENDA REPORT MEETING DATE: JANUARY 15, 2007 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: COMMUNITY DEVELOPMENT DEPARTMENT SUBJECT: lEGISLATIVE REPORT - SENATE Bill (SB) 12, RHNA PilOT PROGRAM SUMMARY Senate Bill 12 would establish a Pilot Program for the Regional Housing Needs Assessment process that would substantially revise the procedure to be followed by the Southern California Association of Governments (SCAG), or delegate subregion, in developing a proposed methodology for distributing the existing and projected regional housing need to cities and counties within the region or subregion. Senate Bill 12 would take effect as an urgency statute. A copy of the bill is included as Attachment A to this report. RECOMMENDA TION: That the City Council take a position to support Senate Bill 12 (Lowenthal), if amended. FISCAL IMPACT: If Senate Bill 12 passes, additional duties would be imposed upon the Southern California Association of Governments (SCAG) that may result in costs being passed on to cities and counties. However, the amount of these costs has yet to be determined. BACKGROUND AND DISCUSSION: Senate Bill 12 would add Section 65584.08 to the Government Code and would establish a Pilot Program for the Regional Housing Needs Assessment process. SB 12 would substantially revise the procedure to be followed by the Southern California Association of Governments (SCAG), or delegate subregion, in developing a proposed methodology for distributing the existing and projected regional housing need to cities and counties within the region or subregion. Senate Bill 12 would take effect as an urgency statute. Staff has identified the following concerns regarding SB 12: . SB 12 proposes to limit the number of RHNA appeals to one per jurisdiction and would not allow an appeal to be filed on an adjusted allocation made in response City Council Report Legislative Report SB 12 January 15, 2007 Page 2 to an appeal decision. Additional appeals should be allowed, so that cities do not receive allocations that cannot be appealed. . SB proposes to require that the final housing need allocation plan be consistent with the regional transportation plan. This requirement may jeopardize the validity of the RHNA numbers because some jurisdictions may underestimate their housing, employment, and population numbers used in subregional projections so that the RHNA allocation will be diminished. RHNA is a needs- based program, while the RTP and subregional projections (such as Orange County Projections) are land-use based. These two concerns have been included in previous comments to SCAG regarding the RHNA Pilot Program in letters dated June 16, 2006, July 6, 2006, July 17, 2006, and August 15, 2006. With the provision that the limitation on appeals and the required consistency between the RHNA and the Regional Transportation Plan (RTP) be removed from Senate Bill 12, staff would recommend that the City Council take a position to support the bill and direct staff to prepare a letter of support to be transmitted to Senator Lowenthal. Scott Reekstin Senior Planner Elizabeth A. Binsack Community Development Director Attachment A: Senate Bill 12 S:\Cdd\CCReports\SB 12 RHNA Pilot Program.doc SENATE BILL No. 12 Introduced by Senator Lowenthal December 4, 2006 An act to add and repeal Section 65584.08 of the Government Code, relating to housing, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST sa 12, as introduced, Lowenthal. Planning and zoning: housing element: Southern California Association of Governments. (1) The Planning and Zoning Law requires a city or county general plan to include specified mandatory elements, including a housing element that identifies and analyzes existing and projected housing needs and includes a statement of goals, policies, quantified objectives, financial resources, and scheduled programs for the preservation, improvement, and development of housing. The Planning and Zoning law requires each local government to review its housing element as frequently as appropriate to evaluate certain data, and establishes June 30,2007, as the date of the 4th revision for the housing element of local governments within the jurisdiction of the Southern California Association of Governments. The Planning and Zoning Law requires at least 2 years prior to a scheduled revision of a local government's housing element that each council of governments, or delegate subregion, as applicable, develop a proposed methodology for distributing the existing and projected regional housing need to cities, counties, and cities and counties within the region, or within the subregion, where applicable, pursuant to specified provisions. That law requires that the methodology be consistent with specified objectives that include, among other things, a determination of the availability ofland suitable for urban development 99 8B12 -2- or for conversion to residential use, the availability of underutilized land, and opportunities for infi.l1 development and increased residential densities. This bill, until January 1, 2015, would substantially revise the procedure for the Southern California Association of Governments, or delegate subregion, as applicable, to develop a proposed methodology for distributing the existing and projected regional housing need to cities and counties within the region or subregion. The bill would establish a state-mandated local program by imposing additional duties upon the Southern California Association of Governments. (2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutoryprovisionsestablishproceduresformakingthatreimbursement. This bill would provide that, if the Commission on State Mandates detennines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions. (3) This bill would declare that it is to take effect immediately as an urgency statute. Vote: ~. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. The people of the State of California do enact as follows: 1 SECTION 1. Section 65584.08 is added to the Government 2 Code, to read: 3 65584.08. (a) For the purposes of this section the "association" 4 is the Southern California Association of Governments. 5 (b) For the fourth revision of the housing element pursuant to 6 Section 65588 within the region of the association, the existing 7 and projected need for housing for the region as a whole and each 8 jurisdiction within the region shall be detennined according to the 9 provisions of this article except as those provisions are specifically to modified by this section. 11 (c) The existing and projected housing need for the region shall 12 be detennined in the following manner: 13 (1) The association shall develop an integrated long-term growth 14 forecast by five-year increments. The growth forecast is not a IS Regional Housing Needs Allocation Plan. 99 -3- 8B12 1 (2) The forecast shall consist of the following three major 2 variables by geographic area throughout the region: 3 (A) Population. 4 (B) Employment. S (C) Households. 6 (3) The association shall convert households into housing units 7 using replacement rates from tbe Department of Finance, and 8 county level vacancy mtes from the most recent census, by 9 weighing vacancy rates of for-sale and for-rent units. 10 (4) The association shall transmit the forecast to the department 11 with the following variables: 12 (A) Population. 13 (B) Employment. 14 (C) Households. 15 (0) Housing units. 16 (5) Upon receiving the forecast, the department shall determine 17 the existing and projected housing need for the region in 18 accordance with paragraph (2) of subdivision (c) of, and with 19 subdivision (d) of, Section 65584.01. 20 (d) Instead of conducting a survey of each of its member 21 jurisdictions, as would otherwise be required under subdivision 22 (b) of Section 65584.04, the association shall conduct a public 23 workshop. Not less than 30 days prior to the date of commencement 24 of the public workshop, the association shall notify affected 25 jurisdictions about the manner in which it proposes to consider the 26 factors specified in subdivision (d) of Section 65584.04 in the 27 housing allocation process. Local governments may submit 28 information about the factors before the workshop for consideration 29 by the association and incorporation into the discussion of the 30 methodology at the workshop. 31 ( e) The association shall delegate development of the housing 32 need allocation plan to the subregional entities, if the association 33 and tbe subregional entities agree in writing to that delegation and 34 the association ensures that the total regional housing need is 35 maintained. 36 (t) The association shall conduct a minimum of 14 public 37 workshops to discuss the regional growth forecast and the factors 38 upon which housing needs are proposed to be allocated to 39 subregions, or, in the absence of a subregion, to individual 40 jurisdictions. The workshops shall also present opportunities for 99 8812 -4- 1 jurisdictions and members of the public or relevant stakeholders 2 to provide information to the association on local conditions and 3 factors. Following the workshops, and concurrent with the adoption 4 of its draft housing allocation plan, the association shall describe 5 the following: 6 (1) The manner in which the plan is consistent with the housing, 7 employment, transportation, and environmental needs of the region. 8 (2) The manner in which the methodology that produced tbe 9 plan complies with subdivision (e) of Section 65584.04. 10 (3) The manner in which the information received in the public 11 workshops was considered in the methodology used to allocate 12 the regional housing need. 13 (g) Both the methodology and allocation process shall consider 14 the factors listed under subdivision (d) of Section 65584.04 and 15 promote the goals and objectives of subdivision (d) of Section 16 65584 and the regional transportation plan growth forecasting 17 process to integrate housing planning with projected population 18 growth and transportation. The association shall complete the final 19 housing need allocation plan not more than 12 months after the 20 date that the department sends a final written determination of the 21 region's existing and projected housing need It is the intent of the 22 Legislature that the housing element update deadlines, as required 23 under Section 65588, and as modified by the department under 24 paragraph (2) of subdivision (a) of Section 65584.02, will not be 25 extended. The association shall submit a report to the Legislature 26 on or before March 30, 2007, describing the progress it has made 27 in completing the final need allocation plan. 28 (h) A city or county may appeal its draft allocation to the 29 association, or a delegate subregion, pursuant to subdivision (e) 30 of Section 65584.05, based upon any of the following criteria: 31 (1) The association or delegate subregion, as applicable, failed 32 to adequately consider the information submitted pursuant to 33 subdivision (d), or a significant and unforeseen change in 34 circumstances has occurred in the local jurisdiction that merits a 35 revision of the information submitted pursuant to that subdivision. 36 (2) The association or delegate subregion, as applicable, failed 37 to determine its share of the regional housing need in accordance 38 with the information described in, and the methodology established 39 pursuant to subdivision (f). 99 -5- SB12 1 (3) The association or delegate subregion, as applicable, failed 2 to determine its share of the regional housing need in accordance 3 with the factors identified in subdivision (d) of Section 65585.04. 4 (i) The association shall not be required to entertain requests 5 for revision pursuant to subdivisions (b) and (c) of Section 6 65584.05. 7 0) A city or county shall not be allowed to file more than one 8 appeal under subdivision (h), and no appeals may be filed under 9 subdivision (h) relating to any adjustments made pursuant to 10 subdivision (g) of Section 65584.05. 11 (k) The final allocation plan shall be subject to the provisions 12 of subdivision (h) of Section 65584.05. 13 (l) The resolution adopted by the association approving the final 14 housing need allocation plan shall ensure that the total regional 15 housing need, as determined pursuant to subdivision (c), is 16 maintained. The resolution shall require the plan to conform to all 17 of the following: 18 (1) Be consistent with the objectives of this section and article. 19 (2) Be consistent with the regional transportation plan and the 20 air quality conformity finding of the plan. 21 (3) Take into accountthe information provided to the association 22 by its member jurisdictions pursuant to subdivisions (d) and (f). 23 (m) This section shall remain in effect only until January 1, 24 2015, and as of that date is repealed, unless a later enacted statute, 25 that is enacted before January 1, 2015, deletes or extends that date. 26 SEC. 2. If the Commission on State Mandates determines that 27 this act contains costs mandated by the state, reimbursement to 28 local agencies and school districts for those costs shall be made 29 pursuant to Part 7 (commencing with Section 17500) of Division 30 4 of Title 2 of the Government Code. 31 SEC. 3. This act is an urgency statute necessary for the 32 immediate preservation of the public peace, health, or safety within 33 the meaning of Article IV of the Constitution and shall go into 34 immediate effect The facts constituting the necessity are: 35 In order to allow the Southern California Association of 36 Governments, at the earliest possible time, to develop a proposed 37 methodology for distributing the existing and projected regional 38 housing need to cities and counties within its jurisdiction on or 99 \ ' 8B12 -6- 1 before the June 30,2007, deadline imposed under existing law, it 2 is necessary that this act take effect immediately. o 99 AGENDA REPORT Agenda Item Reviewed: City Manager Finance Director MEETING DATE: JANUARY 15, 2007 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: COMMUNITY DEVELOPMENT DEPARTMENT SUBJECT: PROPOSED EMISSION GROWTH MANAGEMENT CONTROL MEASURE SUMMARY The South Coast Air Quality Management District is in the process of preparing its 2007 Air Quality Management Plan (AQMP). The Draft 2007 AQMP proposes policies and measures with the stated goal of achieving federal standards for healthful air quality in the South Coast Air Basin. The document attempts to build upon improvements accomplished though previous plans, and to incorporate control measures it deems feasible while balancing costs and socioeconomic impacts. The Draft AQMP includes: 1) AQMD's Stationary and Mobile Source Control Measures; 2) State and Federal Control Measures, and 3) Regional Transportation Strategy and Control Measures provided by the Southern California Association of Governments. The draft control measure for New or Redevelopment Projects, called Emission Growth Management 01 (EGM-01), has raised concerns among local government, business, and community leaders, largely because it includes the proposed imposition of fees on some new development projects when additional project-specific mitigation is otherwise infeasible. RECOMMENDATION: That the City Council adopt Resolution NO. 07-14. FISCAL IMPACT: The draft control measure for New or Redevelopment Projects, Emission Growth Management 01 (EGM-01), proposes to impose a fee on larger development projects when additional project-specific mitigation is otherwise infeasible. The cost to local governments associated with EGM-01 has not been determined. City Council Report Emission Growth Management Control Measure January 15, 2007 Page 2 BACKGROUND AND DISCUSSION: The South Coast Air Quality Management District is in the process of preparing its 2007 Air Quality Management Plan (AQMP). The Draft 2007 AQMP proposes policies and measures with the stated goal of achieving federal standards for healthful air quality in the South Coast Air Basin. The plan employs a comprehensive strategy aimed at controlling pollution from all sources, including stationary sources, on-road and off-road mobile sources, and area sources. The document attempts to build upon the approaches taken in the 2003 AQMP and the improvements accomplished though previous plans, and to incorporate control measures it deems feasible while balancing costs and socioe~onomic impacts. The Draft AQMP includes: 1) AQMD's Stationary and Mobile Source Control Measures; 2) State and Federal Control Measures, and 3) Regional Transportation Strategy and Control Measures provided by the Southern California Association of Governments. The AQMD's control stategy for stationery and mobile sources is based on the following approaches: 1) facility modernization; 2) energy efficiency and conservation; 3) good management practices; 4) market incentives/compliance flexibility; 5) area source programs; 6) emission growth management; and 7) mobile source programs. The draft control measure for New or Redevelopment Projects, called Emission Growth Management 01 (EGM-01), has raised concerns among local government, business, and community leaders, largely because it includes the proposed imposition of fees on some new development projects when additional project-specific mitigation is otherwise infeasible. The purpose of EMG-01 is to mitigate emission growth from new development and redevelopment projects through compliance with all feasible mitigation measures and capturing emission reduction opportunities during the project development phase. The South Coast AQMD is considering several approaches to implement EGM-01, three of which include the use of fees on development and redevelopment projects. The first approach is based on the San Joaquin Valley Unified Air Pollution Control District's Rule 9510, which requires developers of larger projects to implement mitigation measures to reduce emissions or, alternatively, pay into a mitigation fund. The Rule applies to projects including 50 or more residences, 2,000 or more square feet of commercial space, 25,000 or more square feet of light industrial space, 100,000 or more square feet of heavy industrial space, 20,000 or more square feet of medical office space, 39,000 or more square feet of general office space, 9,000 or more square feet of educational space, 1 0,000 or more square feet of government space, 20,000 or more square feet of recreational space, and 9,000 or more square feet of space that is not otherwise identified. It also includes transportation projects with construction emissions totaling two tons or more per year of NOx (nitrogen oxides) and PM 10 (fine particulates) combined. City Council Report Emission Growth Management Control Measure January 15, 2007 Page 3 The second approach would similarly establish fee options in lieu of mitigation measures. The third approach, which is called the CEQA approach, would establish a CEQA mitigation fee program in which mitigation fees may be paid for residual emissions above the significance thresholds after mitigation. According to AQMD, participation in this program would be voluntary. Attached is a draft resolution that is based on a model prepared by the Quality Planning Coalition for use by local agencies, if the Council is inclined to adopt a resolution. Members of the coalition include the Apartment Association of Greater Los Angeles, the Anaheim Chamber of Commerce, Associated General Contractors of California, the Building Industry Association, the California Business Properties Association, the California Housing Council, Inc., the Central City Association of Los Angeles, the California Hotel and Lodging Association, and the California Manufacturers and Technology Association. Staff will continue to monitor and review Draft 2007 as it progresses though the public review process. It is anticipated that the AQMD Board will consider approval of the document in April 2007. A~~ Scott Reekstin Senior Planner &~~~~ Elizabeth A. Binsack Community Development Director Attachment: Resolution No. 07-14 S:\Cdd\CCReports\AQMD Emission Growth Mangement Control Measure.doc ATTACHMENT A Resolution No. 07-14 RESOLUTION NO. 07-14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, OPPOSING THE SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT'S EMISSION GROWTH MANAGEMENT CONTROL MEASURE. The City Council of the City of Tustin does hereby resolve as follows: WHEREAS, improving air quality and reducing emissions is a top priority for the City, community leaders, and Southern California stakeholders; and WHEREAS, California homeownership rates among the lowest in the nation (California is 1.6 million homeowners below the national average and the median price of a home is $555,290) which prevents many working families from achieving the economic and society benefits homeownership provides; and WHEREAS, quality community planning and long-term job creation is best achieved at the local level through citizen participation and a land use process that is managed by City and County government leaders who are elected by and accountable to the voters; and WHEREAS, local city council representatives and members of county boards of supervisors already have in place effective tools including, but not limited to, the California Environmental Quality Act (CEQA) in order to ensure that all new housing, retail, and commercial production are efficient and well constructed; and WHEREAS, it is scientifically proven that the major source of air pollution is through mobile sources (buses, trains, planes, ships, cars, and trucks); and WHEREAS, technological innovations have resulted in the development of some of the most energy efficient homes, cars, and other amenities that can dramatically reduce air pollution if they are utilized by current and future residents; and WHEREAS, despite well-intended goals, the South Coast Air Quality Management District (SCAQMD) proposed Emission Growth Management Control Measure, which includes an undefined, unlimited, and unaccountable new tax is a step backward; and WHEREAS, the proposal overrides city and county planning efforts by enacting a new tax on housing without any specific plan regarding how dollars will be used or requirement to ensure that the tax plan produces results; and WHEREAS, there is nothing in the proposal that addresses the primary source of pollution-mobile sources-and there is no assurance that the fees paid from local jurisdictions will be used in the local jurisdiction; and WHEREAS, there is no limitation on the size or scope of the fee, which threatens local governments who are responsible for funding public safety, transportation City Council Resolution No. 07-14 Page 2 improvements, health care services, parks and recreation activities, and other vital public services; and WHEREAS, the fee proposal harms local redevelopment efforts and discourages investment in disadvantaged communities; and WHEREAS, the fee proposal penalizes citizens seeking to invest in the most energy-efficient housing options and also makes California's housing affordability crisis even worse than it is today; and WHEREAS, an alternative proposed by the Quality Planning Coalition presents a better and specific plan that can achieve the region's air quality goals, strengthen the community planning process and encourage the development of and utilization of the most energy-efficient housing, transportation, and community development strategies without the new and limitless fee; and WHEREAS, the City believes that the best approach to achieving the region's air quality goal is through an enhanced use of the existing CEQA air quality impact review process; an aggressive public outreach effort promoting a toolbox of available cost- effective clean air components for all new development; and an incentive-based approach to promote utilization of the most energy-efficient housing, transportation, and other environmentally friendly activities; NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Tustin officially opposes the .South Coast Air Quality Management District's Proposed Emission Growth Management Control Measure and encourages the SCAQMD to work collaboratively with the Quality Planning Coalition and local government leaders throughout the region to help improve air quality without negatively impacting community planning, local government revenues, and ongoing efforts to improve homeownership. PASSED AND ADOPTED at a regular meeting of the Tustin City Council, held on the 15th day of January, 2007. Lou Bone Mayor Pamela Stoker City Clerk City Council Resolution No. 07-14 Page 3 STATE OF CALIFORNIA ) COUNTY OF ORANGE) SS CITY OF TUSTIN ) CERTIFICATION FOR RESOLUTION NO. 07-14 PAMELA STOKER, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, does hereby certify that the whole number of the members of the City Council of the City of Tustin is 5; that the above and foregoing Resolution No. 07-14 was duly and regularly introduced, passed, and adopted at a regular meeting of the Tustin City Council, held on the 15th day of January, 2007. COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: PAMELA STOKER City Clerk