REPORT TO CITY COUNCIL
SUBJECT
Title
Proposed Project: Adopt Urgency Ordinance to Amend By-Right Approvals (Chapter 19.73) to the Sunnyvale Municipal Code to clarify ministerial review of projects as it relates to proposed subdivisions.
File #: PLNG-2024-0105
Location: Citywide
Applicant: City of Sunnyvale
Environmental Review: Non-discretionary project (Public Resources Code Section 21080(b)(1), CEQA Guidelines Sections 15268, 15357)
Project Planner: Julia Klein, (408) 730-7463, jklein@sunnyvale.ca.gov
Report
REPORT IN BRIEF
General Plan: Various, including Moffett Park Specific Plan, Transit Mixed-Use, El Camino Real Specific Plan, Residential High Density
Existing Zoning: Various, including MP-R, DSP-4, DSP-14, DSP-16, MXD-IV, ECR-MU42, ECR-MU54, Split (ECR-MU54 and ECR-C) and R-4/PD
Existing Site Conditions: Various Uses, including Residential, Office, Commercial and Industrial
Surrounding Land Uses: Various
Issues: Compliance with the Adopted 2023-2031 Housing Element and State Laws and the 60-day review by the State Housing and Community Development Department.
Staff Recommendation: Alternatives 1 and 2:
1. Find that the Action is Exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080(b)(1) and CEQA Guidelines Section 15268 and 15357.
2. Adopt an Urgency Ordinance in Attachment 1 to amend provisions for By-Right Approvals that include subdivisions (previously adopted Urgency Ordinance).
BACKGROUND
on January 30, 2024 the City Council adopted an Urgency Ordinance and Introduced an Ordinance that, among other amendments, added By-Right Approvals (Chapter 19.73) to the Sunnyvale Municipal Code. The second reading of the ordinances was held on February 6, 2024 (see link in Attachment 2). The new ordinance section was adopted to address comments from California Department of Housing and Community Development (HCD) and requirements of State Laws as it relates to Housing Element certification. This action was required because the City did not have a certified Housing Element by the statutory deadline of January 31, 2023.
The draft Urgency ordinance was sent to HCD on January 25, 2024 (a few days before the City Council considered the Urgency and regular ordinances). Staff followed up and sent the adopted Urgency ordinance on January 31, 2024; HCD acknowledged receipt of the ordinance. Overall, the adopted Housing Element met the States criteria. However, on February 12, 2024 HCD provided one comment on the adopted By-Right Zoning Ordinance regarding the review of ministerial projects as it relates to proposed subdivisions. At this time, the City’s Housing Element is not certified as being in compliance. Staff is bringing forward a change to the newly adopted By-Right Approvals (SMC 19.73) section to address HCD’s comments.
EXISTING POLICY
For more information on applicable City policies see the staff report link in Attachment 2. Below is the most applicable policy from the Housing Element.
HOUSING ELEMENT
• Policy H-4.5 By-right Housing on Previously Identified Housing Sites. Allow housing developments with at least 20 percent affordable housing by-right, consistent with objective development and design standards, on lower-income sites counted in previous housing cycles, consistent with Government Code Section 65583.2.
• H2. Rezone Program. As of the start of the planning period (January 31, 2023), the City has an unmet RHNA of 1,535 lower-income and 3,280 above moderate-income units. The City shall approve a specific plan for the Moffett Park area to accommodate the City’s RHNA shortfall by January 31, 2024, and shall ensure that sites rezoned to meet the City’s unmet lower-income RHNA meet specific.
ENVIRONMENTAL REVIEW
The proposed action does not require environmental review under the California Environmental Quality Act (CEQA) because it implements a state-mandated program and is therefore not a discretionary project subject to CEQA. (Public Resources Code Section 21080(b)(1), CEQA Guidelines Sections 15268, 15357.)
DISCUSSION
Housing Element Implementation
As noted above, the adopted Housing Element has not been certified yet. HCD requested one additional change to the By-Right Approval section of the Zoning Code. Specifically, it pertains the processing of ministerial reviews as they relate to proposed subdivisions. HCD has interpreted the City’s adopted code revisions to state that projects that include subdivisions cannot go through the By-Right Approval process. That was not the intent of the City’s adopted ordinances. The adopted ordinances do not prevent an applicant from seeking By-Right Approval after a subdivision application is submitted and approved, but the Subdivision Map Act has requirements for public hearings and appeals. Staff have proposed minor changes to adopted ordinances and requested that HCD review the changes before we move forward. City staff has worked with HCD staff to perfect the language of the revisions; the ordinance includes recommended revisions from HCD.
On Monday February 26, 2024, the Planning Commission will consider the formal ordinance to amend Chapter 19.73 and make its recommendation to the City Council. City Council will consider the formal ordinance on March 19, 2024.
Adopting Ordinances
The schedule for the Formal Ordinance and Urgency Ordinance is:
• 2/26/2024 - Planning Commission meeting - make recommendation to City Council to amend to Chapter 19.73 (By-Right Approval).
• 2/27/2024 - City Council - Urgency Ordinance; and if adopted, would be effective for 45 days (or thru 4/12/2024).
• 3/19/2024 - City Council meeting - Ordinance introduction to amend Chapter 19.73.
• 3/26/2024 - City Council meeting - 2nd reading of Ordinance to amend Chapter 19.73; and if adopted, would go into effect in 30 days (or on 4/25/2024).
• 4/9/2024 - City Council meeting - Urgency Ordinance Extension; and if adopted, would extend urgency ordinance until 4/25/2024.
The formal Ordinance would go into effect by the time the Urgency Ordinance would expire. These two actions would keep the City in compliance with the Adopted Housing Element.
Although it is normally the City’s practice to take urgency zoning ordinances to Planning Commission for a recommendation, Government Code Section 65858 allows the City Council to adopt an urgency ordinance “[w]ithout following the procedures otherwise required prior to the adoption of a zoning ordinance”. Due to the extreme urgency of this situation, the Planning Commission will only be asked to review the regular (non-urgency) ordinance.
FISCAL IMPACT
No fiscal impact is anticipated due to the recommended action; however, failure to adopt the proposed Ordinances could result in HCD finding the City’s Housing Element out of compliance.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, Sunnyvale Public Library and Department of Public Safety. Email notifications were sent to interested parties, including housing advocacy organizations and neighborhood groups. The hearing date was included on the City’s Housing Element Update webpage. The agenda and this report are available at the NOVA Workforce Services reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
ALTERNATIVES
1. Find that the Action is Exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080(b)(1) and CEQA Guidelines Section 15268 and 15357.
2. Adopt an Urgency Ordinance in Attachment 1 to amend provisions for By-Right Approvals that include subdivisions (previously adopted Urgency Ordinance).
3. Do not adopt the Urgency ordinance and provide direction to staff on desired changes.
RECOMMENDATION
Recommendation
Alternatives 1 and 2:
1. Find that the Action is Exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080(b)(1) and CEQA Guidelines Section 15268 and 15357.
2. Adopt an Urgency Ordinance in Attachment 1 to amend provisions for By-Right Approvals that include subdivisions (previously adopted Urgency Ordinance).
The proposed Urgency Ordinance implements the 2023-2031 Housing Element H2. Rezone Program by updating By-Right Approval provisions to clarify that projects with subdivisions would be subject to a ministerial review process and would need to comply with the Subdivision Map Act. Additionally, staff will be bringing a Formal Ordinance forward to update By-Right Approvals in Chapter 19.73 of the SMC to implement the proposed minor change. Staff will also return with an Extension to the Urgency Ordinance (as noted above in the Discussion section).
Staff
Prepared by: Julia Klein, Principal Planner
Reviewed by: Shaunn Mendrin, Planning Officer
Reviewed by: Trudi Ryan, Director of Community Development
Reviewed by: Connie Verceles, Deputy City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Draft Urgency Ordinance
2. Link to RTC 24-0266, By-Right Zoning Introduction, January 30, 2024
3. HCD Letter Dated February 12, 2024