REPORT TO CITY COUNCIL
SUBJECT
Title
Proposed Project: Adopt an Interim Urgency Ordinance to Extend Urgency Ordinance No. 3225-24 (adopted on February 27, 2024) to May 9, 2024 to Amend By-Right Approval (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 Sections 15268 and 15357.
2. Adopt an Interim Urgency Ordinance to Extend Urgency Ordinance No. 3225-24 to May 9, 2024 (in Attachment 1 to this Report) 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 ordinance (adoption) 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, to HCD. HCD acknowledged receipt of the ordinance and noted that overall the adopted Housing Element met the State criteria. However, on February 12, 2024, HCD provided one comment on the adopted By-Right Approval Ordinance regarding the review of ministerial projects as it relates to proposed subdivisions.
To address HCD’s comments, staff scheduled a parallel track for ordinance changes through an Urgency Ordinance and a regular Ordinance. On February 27, 2024, the Council adopted Urgency Ordinance No. 3225-24 which is effective for 45 days (through April 12, 2024).
Based on the code changes included in the February 27, 2024 Urgency Ordinance and the intent to adopt a regular Ordinance to address By-Right Approvals associated with subdivisions, HCD certified the City’s Housing Element on March 6, 2024.
On March 19, 2024, the City Council introduced the regular Ordinance with the same language as the February 27, 2024 Urgency Ordinance, both of which modify By-Right Approval section of the Zoning Code (SMC 19.73). The Council will have a second reading of the regular Ordinance on April 9, 2024; and the regular ordinance would become effective 30 days after adoption (May 9, 2024).
At this time, staff is recommending the City Council adopt an extension of the Urgency Ordinance No. 3225-24 to ensure there is no gap in implementation of the new By-Right Approval regulations (i.e., the time period between April 12 and May 9).
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 now been certified based on the revised language in the By-Right Approval provisions. Specifically, the revised provisions clarify the processing of ministerial reviews as they relate to proposed subdivisions. This Interim Urgency Ordinance has the same language as in the February 27, 2024 Urgency Ordinance and the March 19, 2024 regular Ordinance.
Adopting Ordinances with Clarifying Language
The history of the clarifying language By-Right Approval Ordinances is:
2/26/2024 Planning Commission - recommendation to City Council to adopt Ordinance to amend Chapter 19.73.
2/27/2024 City Council - Urgency Ordinance adopted and effective for 45 days (or through April 12, 2024).
3/19/2024 City Council - Introduction of Ordinance to amend Chapter 19.73.
3/26/2024 City Council - 2nd reading of Ordinance to amend Chapter 19.73; and if adopted, would go into effect in 30 days (May 9, 2024).
4/09/2024 City Council - Interim Urgency Ordinance to Extend the February 27, Urgency Ordinance; and if adopted, would extend the Urgency Ordinance until May 9, 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 “without following the procedures otherwise required prior to the adoption of a zoning ordinance”. Due to the extreme urgency of this situation, the Planning Commission has only reviewed the regular (non-urgency) ordinance.
Following the City Council’s adoption of the Urgency Ordinance on February 27, 2024, the state HCD issued its approval of the city’s Housing Element on March 6, 2024. Refer to Attachment 3 for HCD’s approval letter.
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 Interim Urgency Ordinance to extend Urgency Ordinance No. 3225-24 (adopted on February 27, 2024) to May 9, 2024 in Attachment 1 to amend provisions for By-Right Approvals that include subdivisions (previously adopted Urgency Ordinance).
3. Do not adopt the Interim Urgency Ordinance to extend 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 Interim Urgency Ordinance to extend Urgency Ordinance No. 3225-24 (adopted on February 27, 2024) to May 9, 2024 in Attachment 1 to amend provisions for By-Right Approvals that include subdivisions (previously adopted Urgency Ordinance).
The proposed Interim Urgency Ordinance to Extend the 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. The parallel track utilizes Urgency Ordinances and regular Ordinance to ensure there is no gap in implementation of the new regulations.
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 Interim Urgency Ordinance
2. Link to RTC 24-0391, Urgency Ordinance for By-Right Approval, February 27, 2024
3. HCD Approval Letter - March 6, 2024