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2024-11-19; City Council; 12; Implementation program for the Carlsbad Tomorrow Growth Management Citizens Committee’s recommendations to amend the city’s Growth Management Program
CA Review __AF__ Meeting Date: Nov. 19, 2024 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: Eric Lardy, City Planner eric.lardy@carlsbadca.gov, 442-339-2712 Subject: Implementation program for the Carlsbad Tomorrow Growth Management Citizens Committee’s recommendations to amend the city’s Growth Management Program Districts: All Recommended Action Adopt a resolution approving the implementation program for the Carlsbad Tomorrow Growth Management Citizens Committee’s recommendations to amend the Growth Management Program. Executive Summary In March 2022, the City Council formed the Carlsbad Tomorrow Growth Management Citizens Committee, a resident-led advisory committee to initiate work on the City Council’s goal to develop an updated approach to manage growth in Carlsbad. The committee’s mission was to conduct a balanced consideration of a range of perspectives on issues affecting the future growth and quality of life in Carlsbad. Additionally, the committee sought to identify the key elements of a new plan to manage growth in Carlsbad in a way that maintains an excellent quality of life while also complying with state law. Over the course of 15 meetings between March 2022 and April 2023, the committee learned about and discussed each of the existing Growth Management Program’s 11 public facility performance standards. Performance standards refer to the level of service for public facilities, such as roads, sewer pipes, parks and libraries, that need to be maintained to meet the needs of residents and businesses and ensure Carlsbad’s excellent quality of life. Nov. 19, 2024 Item #12 Page 1 of 22 ,CITY ,COUNCH. Staff Report Carlsbad--~ TOMORR W Growth Management Citizens Committee FINAL REPORT APRIL2023 On April 20, 2023, the committee completed its work and the committee’s recommendations (attached to Exhibit 2) were presented to the City Council on July 18, 2023. The following summarizes the committee recommendations that the City Council directed staff to address. 1. Committee recommendation: Keep, modify or remove existing public facility performance standards, as specified in the committee’s final report (attached to Exhibit 2). City Council direction: The City Council directed staff to return to the City Council with an implementation program and options to update the Growth Management Program consistent with the committee's recommendations three months after the completion of the Housing Element Rezone Program. Status: The subject of this staff report is to request City Council approval of an implementation program (Exhibit 1) to implement the committee’s recommendations to keep, modify or remove existing public facility performance standards. 2. Committee recommendation: Retain the existing park standard and evaluate the feasibility of creating and implementing a distance-based standard to any publicly accessible park. City Council direction: The City Council did not direct staff regarding the park standard at the July 18, 2023, meeting. Staff stated that more information about a distance-based standard would be provided to the City Council in September 2023 as part of the Parks and Recreation Department Master Plan, and the City Council could direct staff at that time. At the Sept. 26, 2023, City Council meeting, as part of the presentation on the Parks and Recreation Department Master Plan, staff provided information related to the proximity of recreation facilities to residential areas throughout the city. The City Council did not direct staff to further pursue creation of a distance-based park standard. Status: Completed. No direction to pursue the matter further. (Not a part of the proposed implementation program). 3. Committee recommendation: Due to increased project costs since 1982, when voters approved a $1 million General Fund expenditure limit through Proposition H, consider a ballot measure to increase the limit and index it to something like the Consumer Price Index so that it can increase over time. City Council direction: The City Council directed staff to bring back options to address Proposition H, which may include placing a measure on the ballot. Status: Completed. The City Attorney’s office presented options to the City Council on May 14, 2024, and returned to the council on June 11, 2024, and June 18, 2024, with a ballot measure to amend Proposition H. (Not a part of the proposed implementation program.) Nov. 19, 2024 Item #12 Page 2 of 22 Explanation & Analysis Growth Management Program The city’s Growth Management Program was created in the late 1980s and is largely credited with maintaining the city’s excellent quality of life, well-planned infrastructure and financial health over the past 35+ years. It consists of the following documents: • The city’s Growth Management Ordinance o Carlsbad Municipal Code Chapter 21.90 specifies the city’s growth management requirements, which include providing public facilities concurrent with development and limiting the number of homes in the city. • The Citywide Facilities and Improvements Plan o Identifies the performance standards for 11 public facilities. • 25 Local Facility Management Zones and Plans o The city is divided into 25 local facility management zones, each of which has a local facility management plan that identifies the public facilities needed for development in the zone, how and when the facilities will be provided, and how they will be funded. • A ballot measure approved by voters (Proposition E) o Approved by voters in November 1986, Proposition E requires public facilities to be provided concurrent with development and established limits on the number of homes in the city. In recent years, new state laws have been passed that render some parts of the city’s Growth Management Program unenforceable, including the city’s ability to enforce a limit on how many new homes can be built in the city. In April 2021, the City Council adopted Resolution No. 2021-074 (Exhibit 3), which finds that state laws preempt the city from implementing residential growth management plan caps, residential quadrant limits and residential density control points. Carlsbad Tomorrow Growth Management Citizens Committee A goal of the City Council for fiscal year 2021-2022 was to engage the community through a citizens committee to create a new plan to manage growth in Carlsbad in a way that maintains an excellent quality of life while also complying with state law. This is also reflected as an objective to help maintain Carlsbad’s unique community character in the City Council’s 5-Year Strategic Plan. To begin work on this goal, the City Council formed a resident-led committee comprised of 19 primary and 19 alternate members. The committee met 15 times from March 2022 to April 2023. The committee’s charter stated: The committee’s work will conclude with a committee-supported report recommending to the City Council the key elements of what should be included in a new plan to manage growth and achieve an excellent quality of life while maintaining compliance with state law. The City Council will consider the committee’s recommendations and direct the next steps to create a new growth management plan. Nov. 19, 2024 Item #12 Page 3 of 22 Committee recommendations on growth management standards The Growth Management Plan contained performance standards for 11 public facilities. Of these existing 11 public facility performance standards, the committee recommended keeping seven as they are, modifying the water distribution system and open space standards and removing the standards for wastewater treatment capacity, city administrative facilities, fire, and schools, which the committee considered to already have plans in place to ensure the city’s needs are met in the future. Current growth management public facility Committee’s recommendation Libraries Keep as is Parks Keep as is Circulation (mobility) Keep as is Drainage Keep as is Sewer collection system Keep as is Water distribution system Modify Open space Modify Wastewater treatment capacity Remove City administrative facilities Remove Fire Remove Schools Remove The committee’s report, Exhibit 2, provides more detailed information on the existing public facility standards, the committee’s recommended changes and its rationale. Nov. 19, 2024 Item #12 Page 4 of 22 III T ~ • 0 0 0 0 0 © © 0 0 0 0 Implementation of committee recommendations Staff has prepared an implementation program (Exhibit 1) that identifies the tasks needed to implement the committee recommendations to keep, modify or remove existing public facility performance standards. Tasks 1 and 2 will be initiated after City Council approval of the implementation program. Tasks 3 and 4 will be initiated after City Council approval of a consultant contract (Task 1). Task # Task Estimated timing Estimated cost 1 Obtain consultant services for tasks 3 and 4 Prepare scope of work Release request for proposals Contract approval Six to nine months (after approval of implementation program) to return to City Council with professional services agreement See Tasks 3 and 4 2 Review and update: Citywide Facilities and Improvements Plan General Plan Zoning Ordinance City Council Policy 431 12 to 18 months (after approval of implementation program) to return to City Council with recommended amendments Staff time. No additional cost. 3 Evaluate and recommend changes to: All public facility development impact fees2 City Council Policy 173 Tax required on new construction by Carlsbad Municipal Code Section 5.09 24 months (after approval of consultant contract) to return to City Council with recommended amendments $100,000- $120,000 4 Review and update: The local facilities management plans for the sites rezoned in 2024 as part of the update of the General Plan’s Housing Element. These sites are in local facilities management zones 1, 3, 5, 15, 17, 18, 22 and 23 (Exhibit 4). Two to four years (after approval of consultant contract). $320,000- $420,000 1 City Council Policy 43 set the city’s policy for the number and criteria for allocating “excess” dwelling units, those that become available when residential projects are built with fewer dwelling units that would have been allowed by the Growth Management Plan. 2 A public facility development impact fee is a one-time charge imposed on new development projects to help cover the cost of building or expanding public facilities 3 Policy 17 established the requirements necessary to satisfy the Public Facilities Element of the city’s General Plan. Nov. 19, 2024 Item #12 Page 5 of 22 New level of service standard for circulation The Growth Management Plan had a standard for circulation that called for the city to build and maintain a comprehensive livable streets network that serves all users. The committee did not recommend changing that standard. However, separate from implementation of the committee’s recommendations, the Public Works Department is preparing guidance and a methodology to implement a new level of service standard for all forms of transportation. This work will be presented to the City Council in 2025 and followed by a report to the Traffic Safety & Mobility Commission. With the City Council’s approval of the methodology, staff will prepare an update to the Circulation standard that will be consistent with the methodology, as needed. Relationship to the current Housing Element California law requires that all cities demonstrate how they will meet the housing needs of everyone in the community with a Housing Element as part of their General Plans. In April 2021, the City Council approved and in July 2021 the state certified Carlsbad's housing plan, the General Plan’s Housing Element. This plan details how Carlsbad will accommodate projected housing needs through 2029. State law has forced changes in how the city can enforce the current Growth Management Program. Senate Bill 330, the Housing Crisis Act of 2019, prohibits local jurisdictions from imposing moratoriums on housing development and using residential housing caps or other limits to regulate the number of housing units built in a jurisdiction. This preempted the moratorium requirements and residential housing caps in the current program. The city came into compliance with the Housing Crisis Act in April 2021 when the City Council adopted a resolution (Resolution No. 2021-074) that suspended the residential housing caps and moratorium provisions of the current Growth Management Program. The city’s housing plan includes this policy (Policy 10-P.15): “Work with the community to modify or replace Measure E (Growth Management Program) relative to the residential growth caps and development moratorium to be in compliance with SB330.” The Carlsbad Tomorrow Growth Management Citizens Committee’s work was the first step in implementing that policy. The housing plan also contains numerous other programs that must be implemented. Program 1.1 requires the city to rezone property as necessary to accommodate the city’s Regional Housing Needs Assessment, which establishes the number of homes needed to accommodate forecasted growth through 2029, the end of the current housing planning period. Program 1.1 was completed on Jan. 30, 2024, when the City Council approved the rezoning program. (Resolution No. 2024-015) Now that the rezoning effort has been completed, the city can estimate the number of housing units remaining to be built under the General Plan and can identify the necessary revisions needed to the citywide Growth Management Program and the directly affected local facilities management zones and the respective local facilities management plans. Nov. 19, 2024 Item #12 Page 6 of 22 Linking future Housing Element Updates to evaluation of Growth Management Program The implementation program provided as Exhibit 1 also includes a Task 5, which is a future task related to the next Housing Element Update. The current Housing Element plans for the city’s housing needs through 2029. An updated Housing Element will be required to plan for the city’s housing needs through the next housing cycle, which will be the seventh cycle and typically cover an eight-year timeframe. It is anticipated that the next Housing Element update will require another rezoning program to again increase the number of housing units allowed in the city to accommodate the new regional housing needs assessment. Increasing the number of homes impacts the city’s public facility needs and planning. Because of this correlation, staff recommend that the adequacy of the Growth Management Program, particularly the adequacy of public facility standards, be evaluated concurrently with each update of the Housing Element, beginning with the next one, for the seventh cycle. Currently, with the adoption of Assembly Bill 1730 in 2019, the city will be required to adopt the seventh cycle revision to the Housing Element within 18 months of the San Diego Association of Governments’ adoption of its update to the Regional Transportation Plan in 2029. Therefore, it is estimated that the updated plan will be due between July 2030 and June 2031. This is reflected in the proposed implementation program (Exhibit 1, Task 5). The 2029 Housing Element update will need to begin two to three years before April 2029 to be completed on time. Community Engagement The city’s Communication & Engagement team will work with the selected consultant to develop an outreach strategy. The Carlsbad Tomorrow Growth Management Citizens Committee’s work included a significant community engagement effort. Beyond the membership of the committee being representative of the community as a whole, all committee meetings were held in public, publicly noticed and included an opportunity for input from the community at each meeting. Committee meetings were streamed live on the city’s website and meeting materials and recordings were posted to the city website. All committee meetings were held in accordance with the open meeting requirements of the Ralph M. Brown Act. The committee held 15 public meetings between March 2022 and April 2023. Regular updates were shared via the city’s communication channels about the committee’s work and topics on the agenda for discussion throughout the process. This included communicating the availability of the committee’s draft recommendations for public review, which were posted on the city website from March 14 to April 20, 2023. All written public comments are included as an appendix to the committee’s report (Exhibit 2). Fiscal Analysis Staff estimate the total cost for consultant services to complete the implementation program (Exhibit 1) will be $420,000 to $520,000 over a four- to six-year period. After releasing a request for proposals and selecting a consultant, staff will return to the City Council with a request to approve a consultant contract and to appropriate funding for the consulting services. Nov. 19, 2024 Item #12 Page 7 of 22 Next Steps Following City Council approval of the implementation program (Exhibit 1), staff will proceed with the next steps outlined in the implementation program, or as otherwise directed by the City Council. Environmental Evaluation The City Planner has determined that this action is exempt from the requirements of the California Environmental Quality Act in accordance with Guidelines Section 15378(b)(5), in that receiving a report and providing direction to staff to seek consulting services, and to prepare additional studies and reports does not meet the definition of a project. The action constitutes organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment. Exhibits 1. City Council resolution 2. City Council staff report dated July 18, 2023 (on file in the Office of the City Clerk) 3. City Council Resolution No. 2021-074 4. Local facility management zones and 2024 Housing Element rezone sites Nov. 19, 2024 Item #12 Page 8 of 22 RESOLUTION NO. 2024-262 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE IMPLEMENTATION PROGRAM FOR THE CARLSBAD TOMORROW GROWTH MANAGEMENT CITIZENS COMMITTEE'S RECOMMENDATIONS TO AMEND THE GROWTH MANAGEMENT PROGRAM WHEREAS, the Growth Management Program was established in 1986, consisting of the Growth Management Ordinance, Citywide Facilities and Improvements Plan, 25 Local Facilities Management Plans, and voter-approved Proposition E; and WHEREAS, the Growth Management Program sets forth growth control measures on housing development and performance standards for certain public facilities including city administration, library, wastewater treatment capacity, parks, drainage, circulation, fire, open space, schools, sewer collection, and water distribution, which ensured that all necessary public facilities were adequate and available concurrent with need to serve new development; and WHEREAS, in response to the state's housing crisis, the state Legislature has adopted a series of housing related bills in recent years to increase housing production. These changes limit the city's ability to fully implement the current Growth Management Program; and WHEREAS, on April 6, 2021, the City Council of the City of Carlsbad, California adopted Resolution No. 2021-074, which found that "Government Code Sections 65583(a)(3) and 65863(a) (SB 166 [2017]) and Government Code Section 66300(b){l){D) (SB 330 [2019]) preempt the city from implementing residential growth management plan caps, residential quadrant limits, and residential control points. Consequently, the city finds that it cannot and will not enforce these residential caps, quadrant limits, and control points, including but not limited to those contained in the General Plan (including, but not limited to the Land Use and Community Design Element Table 2-3, Section 2.6, Policy 2-P.8(a) and (b), Policy 2-P.16(d), and Policy 2-P.57), Growth Management Plan (Proposition E); City Council Policy Statement No. 43, Carlsbad Municipal Code Chapter 21.90 including but not limited to CMC §§ 21.90.030 (b), 21.90.045 and 21.90.185." WHEREAS, on May 4, 2021, the City Council of the City of Carlsbad, California adopted Resolution No. 2021-100 directing staff to initiate the process to form a citizens committee to identify the key elements of a new plan to manage growth and maintain an excellent quality of life in Carlsbad while complying with state housing laws; and to return to the City Council with recommendations on the formation of a committee; and Exhibit 1 Nov. 19, 2024 Item #12 Page 9 of 22 WHEREAS, on Sept. 28, 2021, the City Council adopted resolution No 2021-223 approving the Growth Management Plan Update Advisory Committee Charter, and on March 8, 2022, the City Council made appointments to the Growth Management Plan Update Advisory Committee, later renamed Carlsbad Tomorrow: Growth Management Citizens Committee; and WHEREAS, the Carlsbad Tomorrow: Growth Management Citizens Committee met 15 times from March 2022 to April 2023, and on April 20, 2023, the committee accepted the Carlsbad Tomorrow: Growth Management Citizens Committee Report, April 2023, on file with the City Clerk, which includes the committee’s recommendations to the City Council on changes to the Growth Management Program; and WHEREAS, on July 18, 2023, the City Council adopted Resolution No. 2023-205 directing staff to return to the City Council with an implementation program to update the Growth Management Program consistent with the committee’s recommendations to keep, modify or remove existing public facility performance standards; and WHEREAS, on January 30, 2024, the City Council adopted Resolution No. 2024-0015 approving the Housing Element rezone program, which increased public facility needs by increasing the number of planned housing units throughout the city. WHEREAS, an implementation program for the committee's recommendations on changes to public facility performance standards is outlined in Attachment A. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1.That the above recitations are true and correct. 2.That the City Council directs the City manager or designee to initiate the implementation program (Attachment A) for the Carlsbad Tomorrow Growth Management Citizens Committee recommendations to revise the Growth Management Program by changing the public facility performance standards, as described in the Carlsbad Tomorrow: Growth Management Citizens Committee Report, April 2023. 3.That the City Council directs the City Manager or designee to enter into a consultant contract(s) to implement Tasks 3 and 4 of the implementation program (Attachment A), in accordance with the requirements of Chapter 3.28 of the Municipal Code, and return to council to authorize appropriation of funding for the consulting services. Nov. 19, 2024 Item #12 Page 10 of 22 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 19th day of November, 2024, by the following vote, to wit: AYES: NAYS: ABSTAIN : ABSENT: BLACKBURN, BHAT-PATEL, ACOSTA, BURKHOLDER, LUNA. NONE. NONE. NONE. KEITH BLACKBURN, Mayor SHERRY FREISINGER, City Clerk (SEAL) Nov. 19, 2024 Item #12 Page 11 of 22 Attachment A IMPLEMENTATION PROGRAM Objective: Implement the Carlsbad Tomorrow Growth Management Citizens Committee recommendations to update the Growth Management Program. Lead Department: Community Development Supporting Departments: City Attorney Finance Utilities Fire Parks & Recreation Traffic & Mobility Library & Cultural Arts Communication & Engagement Resource needs • 50% Senior Planner in Community Development Dept. • Supporting departments on as needed basis • Consultant services (cost to be determined) Carlsbad Tomorrow Growth Management Citizens Committee Recommendations The Carlsbad Tomorrow Growth Management Citizens Committee was charged with identifying key elements of a new plan to manage growth in Carlsbad in a way that maintains an excellent quality of life while also complying with state law. Over the course of 15 meetings, the committee received in-depth presentations from department heads, Fire and Police Chiefs, and other internal and external experts about each of the existing Growth Management Program’s 11 public facility performance standards. For each performance standard, the committee determined whether the standard should be kept as is, modified or removed from the Growth Management Program, as summarized below. Current growth management public facility Committee’s recommendation Libraries Keep as is Parks Keep as is Circulation (mobility) Keep as is Drainage Keep as is Sewer collection system Keep as is Water distribution system Modify Open space Modify Nov. 19, 2024 Item #12 Page 12 of 22 ... 0 • 0 ' 0 ,I ,. ,. ·-0 III 0 T ~ © • :.:t -© -- Implementation Program Implement the Carlsbad Tomorrow Growth Management Citizens Committee recommendations to update the Growth Management Program Page 2 Current growth management public facility Committee’s recommendation Wastewater treatment capacity Remove City administrative facilities Remove Fire Remove Schools Remove TASKS TO IMPLEMENT COMMITTEE RECOMMENDATIONS Task 1. Obtain Consulting Services – Request for Proposals and Contract Approval • Develop scope of work/send request for proposals to complete Tasks 4 and 5, below. • Consultant selection • City Council contract approval • ESTIMATED COMPLETION: Six to nine months after approval of this implementation program • ESTIMATED COST: See Tasks 3 and 4. 2. Update Citywide Facilities and Improvements Program (CFIP), General Plan, Carlsbad Municipal Code, and City Council Policy 43 • Update the public facility performance standards as recommended by committee. • Update all sections of CFIP to reflect current status. • Update CFIP to require a review/update of the public facility performance standards/Growth Management Program to occur concurrently with each Housing Element Update (see Task 5). • Update General Plan and Zoning Ordinance to ensure consistency with updated public facility performance standards. • Update Carlsbad Municipal Code to reflect current status of Growth Management Program. • Update Carlsbad Municipal Code to require a review/update of the public facility performance standards/Growth Management Program to occur concurrently with each Housing Element update. • Update City Council Policy 43 to align with revised Growth Management Program. • ESTIMATED COMPLETION: 12 to 18 months after approval of this implementation program. • ESTIMATED COST: Staff time. No additional cost. Nov. 19, 2024 Item #12 Page 13 of 22 ffll &. a ~ 0 0 0 0 Implementation Program Implement the Carlsbad Tomorrow Growth Management Citizens Committee recommendations to update the Growth Management Program Page 3 3. Evaluate public facility development impact fees and update as necessary • Prepare a development impact fee nexus study, evaluate the city’s existing development impact fees, and recommend changes to fees, as necessary, to ensure public facilities are adequate to serve future development, are consistent with all applicable regulations, as well as the committee’s recommended changes to public facility performance standards. Fees to be evaluated include the Public Facility Fee, Traffic Impact Fee, Drainage Area Fee, Sewer Fee, Local Facility Management Fee, and Park Land In-Lieu Fee. Although the city updated the Park Land In-Lieu Fee in April 2024 and is working on an update to the Traffic Impact Fee, these fees will be included in a comprehensive evaluation of all fees; however, this evaluation is not intended to conflict with those other fee update efforts. • City Council Policy 17 shall be updated, as needed, to be consistent with any fee update. • The tax required by Carlsbad Municipal Code Section 5.09 shall be evaluated and updated, if necessary. • ESTIMATED COMPLETION: 24 months after consultant contract approval. • ESTIMATED COST: $100,000 - $120,000 4. Update Local Facility Management Plans (LFMPs) • Update the LFMPs for the 2024 Housing Element rezone sites, which are within LFMZs 1, 3, 5, 15, 17, 18, 22 and 23. • ESTIMATED COMPLETION: Two to four years after consultant contract approval. • ESTIMATED COST: $320,000 to $400,000 5. 2029 Housing Element Update (7th Cycle) • Review and provide recommendations on any necessary changes to the Growth Management Program based on: o A new Regional Housing Needs Allocation assigned to the city, o Any changes needed to the General Plan, o Changed conditions in the city’s growth, o and required updates to facility plans or nexus studies to continue to update fees. • The city will be required to adopt the 7th cycle update to the Housing Element within 18 months of the San Diego Association of Governments adoption of its update to the Regional Transportation Plan in 2029. The 2029 Housing Element update will need to begin 2-3 years before April 2029 to be completed on time. • ESTIMATED COMPLETION AND COST: Dependent upon scope of work, which will be determined at the time of a request for consultant proposals for the Housing Element update (2-3 years prior to April 2029). Nov. 19, 2024 Item #12 Page 14 of 22 Exhibit 2 City Council Staff Report Dated July 18, 2023 (on file in the Office of the City Clerk) Nov. 19, 2024 Item #12 Page 15 of 22 April 6, 2021 Item #6 Page 538 of 570 Exhibit 3 Nov. 19, 2024 Item #12 Page 16 of 22 RESOLUTION NO. 2021-074 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, IMPLEMENTING UPDATED HOUSING ELEMENT PROGRAM 2.2, BY FINDING THE CITY'S RESIDENTIAL HOUSING CAPS CONTAINED IN THE GENERAL PLAN, GROWTH MANAGEMENT PLAN (PROPOSITION E), CITY COUNCIL POLICY STATEMENT NO. 43, AND THE CITY'S MUNICIPAL COD£ (TITLE 21 CHAPTER 90) ARE PREEMPTED BY STATE LAW AND UNENFORCEABLE WHEREAS, in 1986 the voters of the City of Carlsbad, California adopted Proposition E, which has become known as the Growth Management Plan (GMP); and WHEREAS, the GMP amended the city's General Plan by adding the following: The City of Carlsbad in implemen.ting its public facilities element and growth management plan has made an estimate of the number of dwelling units that will be built as a result of the application of the density' ranges in the Land Use Element to individual projects. The City's Capital Improvement Budget, growth management plan, and public facilities plans are based on this estimate. In order to ensure that all necessary public facilities will be available concurrent with need to serve new development it is necessary to limit the number of residential dwelling units which can be constructed in the city to that estimate. For that purpose, the city has been divided into four quadrants along El Camino Real and Palomar Airport Road. The maximum number of residential dwelling units to be constructed or approved in the city after November 4, 1986 is as follows: Northwest quadrant 5,844; Northeast quadrant 6,166; Southwest quadrant 10,667; Southeast quadrant 10,801; and The total number of residential dwelling units at build out was limited to 54,599; and, WHEREAS, for the sixth housing cycl e, the city was assigned a total RHNA of 3,873 housing units, and as of February 28, 2021, only 1,953 residential dwelling units remain available to reach the 54,599 citywide cap. This number includes the 1,353 units that were removed by the City Council in 2002. The 1,953 total units that remain available are distributed among the quadrants as follows: 417 residential dwelling units in the Northwest quadrant, 102 in the Northeast quadrant, 1,127 in the Southwest quadrant and 307 in the Southeast quadrant for a total of 1,953; and WHEREAS, Proposition E also established Growth Management Control Points for General Plan Density Ranges in order to ensure that growth caps would not be exceeded. When a project is approved with fewer dwelling units than would be allowed by the Growth Management Control Point, excess dwelling units are created. These units are "deposited" in the Excess Dwelling Unit Bank (EDUB). The City Council enacted City Council Policy No. 43 in part to create a process to allocate these excess units April 6, 2021 Item #6 Page 539 of 570Nov. 19, 2024 Item #12 Page 17 of 22 to future projects. City Council Policy No. 43 can act as a cap on development to the extent that units are available in the EDUB; and WHEREAS, the City's General Plan Land Use and Community Design {LUCO) Element also incorporates the residential caps and control points from Proposition E, including Table 2-3 and Section 2.6, Policy 2-P.8(a) and {b), Policy 2-P.16(d), Policy 2-P.57; WHEREAS, the City's Municipal Code contains a number of provisions which also implement the GMP housing caps, including but not limited to CMC §§ 21.90.030 (b), 21.90.045 and 21.90.185; WHEREAS, in 2017 the California Legislature passed SB 166 which amended the Housing Element law (Gov. Code § 65863(a)) to require the City to ensure that its Housing Element is capable of accommodating the remaining Regional Housing Needs Allocation (RHNA) "at all times;" and WHEREAS, in 2019 the California Legislature passed the Housing Crisis Act of 2019 (SB 330) which added 66300 to the Government Code. It states that California is experiencing a housing shortage of crisis historic proportions. To address the crisis, the legislature has declared a statewide housing emergency until 2025 and suspended certain restrictions on development of new housing during the emergency. Among other things, the Legislature has suspended the ability of cities to establish or implement any provision that: (i) Limits the Number of land use approvals or permits necessary for the approval and construction of housing that will be issued or allocated within a II or a portion of the affected county or affected city, (ii) Acts as a cap on the number of housing units that can be approved or constructed either annually or for some other t ime period, or {iii) Limits the population of the affected county or affected city. Government Code 66300 (b)(l)(D); and WHEREAS, on February 23, 2021 the City of Carlsbad received an opinion from HCD (Attachment A) which states: The City's GMP appears to be designed to assure that housing development in the City and the provision of public services are closely aligned (City of Carlsbad Mun. Code, § 21.09.010.) However, the City's GMP establishes growth cap numbers ~ity-wide and by quadrant. Moreover, the City's GMP mandates that the City shall not approve any General Plan amendment, zone change, tentative subdivision map or other discretionary approval for a development which could result in the development above the limit in any quadrant. The establishment of such growths caps and development restrictions contradicts Government Code section 66300, subdivision {b)(l)(D). Accordingly, HCD is of the opinion that such a growth cap under the GMP cannot permissibly be implemented consistent with Government Code section 66300. April 6, 2021 Item #6 Page 540 of 570Nov. 19, 2024 Item #12 Page 18 of 22 WHERAS, additional communication with HCD explained the GMP residential unit caps could not prevent consistency with the Housing Element inventory [Gov. Code 65583(a)(3)] and SB 166 [Gov. Code§ 65863(a)]; WHEREAS, if the City of Carlsbad does not address HCD's concerns and refuses to certify the City housing element in compliance with state law, the City would lose the ability to control residential development. More specifically, the Government Code places the burden on a city to deny housing development projects, and requires a city to adopt specific findings for denial or a reduction in residential density. (Gov. Code,§§ 65589.5(d) and (j), 65863.) This includes findings that (A) a city has adopted a housing element in substantial compliance with state law, (B) a city has met or exceeded its RHNA allocation, and (C) that denial of a housing project is consistent with a city's general plan, including the housing element. (Gov. Code,§§ 65589.5(d)(l).) If these findings cannot be made, a city is generally required to approve a housing project. (Id.) The City is also explicitly precluded for relying upon a land use inconsistency as grounds for denial .of a housing project where it does not have a certified housing element. (Gov. Code,§ 65589.5(d)(5)(B).); WHEREAS, Under the California Constitution article XI, section 7 a city may not enact local laws that conflict with "general" or state laws. Local legislation that conflicts with the general laws of the state is void, including Growth Management Plans; California Building. Industry Assoc. v. City of Oceanside (1994) 27 Cal.App.4th 744, 760-761. Cohen v. Board of Supervisors (1985) 40 Cal 3d 277, 290; similarly, previously valid laws which become inconsistent with state law are also void and unenforceable. Friends of Lagoon Valley v. City of Vacavilfe (2007) 154 Cal.App.4th 807,830; and WHEREAS, Pursuant to Public Resources Code Section 21065, the City's preemption findings which simply recognize controlling state law do not constitute a "project" within the meaning of the California Environmental Quality Act (CEQA) in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore does not require environmental review. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct and are incorporated herein by reference to include Attachment A as findings set forth in full. April 6, 2021 Item #6 Page 541 of 570Nov. 19, 2024 Item #12 Page 19 of 22 2. Consistent with Updated Housing Element Program 2.2, the City Council finds that Government Code Sections 65583(a)(3) and 65863(a) (SB 166 [20171) and Government Code Section 66300(b)(l)(D) (SB 330 [20191) preempt the city from implementing residential growth management plan caps, residential quadrant limits, and residential control points. Consequently, the City finds that it cannot and will not enforce the_se residential caps, quadrant limits, and control points, including but not limited to those contained in the General Plan (including, but not limited to the Land Use and Community Design Element Table 2-3, Section 2.6, Policy 2-P.B(a) and (b), Policy 2- P.16(d), and Policy 2-P.57), Growth Management Plan (Proposition E); City Council Policy Statement No. 43, Carlsbad Municipal Code Chapter 21.90 including but not limited to CMC §§ 21.90.030 (b), 21.90.045 and 21.90.185. 3. If any section, subsection, sentence, clause, or phrase of this resolution is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the resolution. The City Council hereby declares that it would have passed this resolution and each section, subsection, sentence, clause, and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid or unconstitutional. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 6th day of April, 2021, by the following vote, to wit: AYES: NAYS: ABSENT: Blackburn, Acosta, Bhat-Patel. Hall, Schumacher. None. MATT HALL, Mayor ~WhD0YY!et~ nv BARBARA ENGLESON, City Clerk (SEAL) STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT 2020 W. El Camino Avenue, Suite 500 Sacramento, CA 95833 (916) 263-2911 / FAX (916) 263-7453 www.hcd.ca.gov February 23, 2021 Celia A. Brewer, City Attorney Office of the City Attorney City of Carlsbad 1200 Carlsbad Village Drive Carlsbad, CA 92008 Dear Celia Brewer: RE: Request for HCD Opinion on Enforceability of City’s Growth Cap Letter of Technical Assistance This letter is to assist the City of Carlsbad (City) in the implementation of Government Code 66300, part of the Housing Crisis Act (Senate Bill 330) of 2019, as requested in the City’s letter dated August 04, 2020. The City’s letter requested the opinion of the California Department of Housing and Community Development (HCD) as to the enforceability of the City’s growth cap provisions within the Growth Management Program (Proposition E or GMP). For the reasons explained below, HCD finds that the City’s growth cap provisions to be impermissible under Government Code section 66300, subdivision (b)(1)(D). HCD’s opinion is based on the mandatory criteria established by the Legislature with the passage of SB 330 in 2019, also known as the Housing Crisis Act of 2019, which added section 66300 to the Government Code. The State of California is experiencing a housing supply shortage of crisis proportions. To address this crisis, the Legislature declared a statewide housing emergency until 2025 and suspended certain restrictions on development of new housing during the emergency period. (Housing Crisis Act of 2019, Chapter 654, Statues of 2019, section 2(b).) Among other things, the Legislature suspended the ability of cities and counties to establish or implement any provision that: (i) “Limits the number of land use approvals or permits necessary for the approval and construction of housing that will be issued or allocated within all or a portion of the affected county or affected city,” (ii) “Acts as a cap on the number of housing units that can be approved or constructed either annually or for some other time period,” or (iii) “Limits the population of the affected county or affected city.” (Gov. Code, § 66300, subd. (b)(1)(D). Attachment A April 6, 2021 Item #6 Page 542 of 570Nov. 19, 2024 Item #12 Page 20 of 22 The City’s GMP appears to be designed to assure that housing development in the City and the provision of public services are closely aligned (City of Carlsbad Mun. Code, § 21.09.010.) However, the City’s GMP establishes growth cap numbers City-wide and by quadrant. Moreover, the City’s GMP mandates that the City shall not approve any General Plan amendment, zone change, tentative subdivision map or other discretionary approval for a development which could result in the development above the limit in any quadrant. The establishment of such growths caps and development restrictions contradicts Government Code section 66300, subdivision (b)(1)(D). Accordingly, HCD is of the opinion that such a growth cap under the GMP cannot permissibly be implemented consistent with Government Code section 66300. Thank you for reaching out to HCD for this guidance. Please contact Melinda Coy of our staff, at Melinda.Coy@hcd.ca.gov, with any questions. Sincerely, Shannan West Land Use and Planning Chief April 6, 2021 Item #6 Page 543 of 570Nov. 19, 2024 Item #12 Page 21 of 22 LFMZ 1 LFMZ 1 LFMZ 1 LFMZ 15 LFMZ 3 LFMZ 5 LFMZ 5 LFMZ 3 LFMZ 5 LFMZ 17 LFMZ 17 LFMZ 18 LFMZ 22 LFMZ 22 LFMZ 23 Exhibit 4 Nov. 19, 2024 Item #12 Page 22 of 22 @ Housing Sites Approved for Rezoning ( \ . , -.\ "' " \\ .•;: \ .... _.:_.// I''- -,, ',, -------------~/ I I I I I I --------. I I , ... __ ,----- , I -... } I t ___ _, • .., I I I I I I I I I I I I I I I I I I I /,,,..,, I ,/' '1 ,___ I I --.... _ I \ ---J ; \ ·--7 I I I I I I I I , ____ _ --, I I I ALGA RD -------------J ~~zi} I I """~=====/ I I I I I I I I I I I I I I I I I I I <Jc-<:) I ,,_,,, L_, g \ ;ff \ 0 I :,: .J ~ ; ~ ''iit:f'?+.,.. i -}-; ~; D ~ ;:: :,: " ~:i: iar-~s-.. u Housing Sites Approved for Rezoning Convert government-owned property to allow housing {;/ -Convert commercial property to allow housing :L ~ ;:~:':~~,•::::;;::'.~::: :~~';::::,tw hoos;ag ~ ·_:,'::·.:•:.-• -~ :\~~-q_u_e~ts_M~r_c~2.0_1 ~\C!ty~anage~~IT_~.~~~!~ ~ ~ _24\Housin~ 1Sites Approved for R~~oning\Housing ~ Approved for Re~~ning.aprx 0 ', SAN~Jo"°"'"=, ',, I I I I I •-/ ---.., I I ,__ I I I -. I I ~======~ I I I I I I I I I I .-=====--I g.5 I I I !, I I I I I I ( / ,___ r--I ---?_Lf.':!_~NHA/N f _______ / ---I I I I I I I ---I -\ I , I \ I ' I ' I '\·---Pl__ ____ ) 1 Miles Eric Lardy, City Planner Community Development Department November 19, 2024 Plan to Implement Growth Management Committee Recommendations TODAY’S PRESENTATION •Background summary •Overview of Growth Management Program •Summary of Growth Management Committee Recommendations •City Council direction on July 18, 2023 •Proposed plan to implement committee recommendations •Next steps ITEM 12: Growth Management Recommendations OVERVIEW OF GROWTH MANAGEMENT PROGRAM Adequate Public Facilities Provide facilities with development Facility standards Limit Residential Growth Proposition E Limits number of houses ITEM 12: Growth Management Recommendations ITEM 12: Growth Management Recommendations Voters Examples of Key City Documents that Guide and Manage Growth (Adopted by City Council) Growth Management Program General Plan Local Coastal Program Other Municipal Code Development Standards Public Master Plans Proposition E: Housing Caps Policies for many topics including: land use, mobility, recreation, safety, housing Guides development in the Coastal Zone consistent with the Coastal Act Subdivision Ordinance, Building Code Parks and Trails Mobility Utilities Growth Management Ordinance Citywide Facilities Management Plan Local Facility Management Plans Municipal Zoning Code (Title 21) CITYWIDE FACILITIES AND IMPROVEMENTS PLAN City admin. facilities Circulation Libraries Drainage Parks Sewer Collection Open space Water distribution Schools Wastewater treatment capacity Fire response ITEM 12: Growth Management Recommendations BACKGROUND SUMMARY •State law made components unenforceable •Growth Management Citizens Committee formed in March 2022 •15 committee meetings 2022-2023 ITEM 12: Growth Management Recommendations COMMITTEE RECOMMENDATIONS •July 18, 2023 - Final report presented to City Council •Recommends key public facilities to be addressed in a new plan to manage growth ITEM 12: Growth Management Recommendations COMMITTEE RECOMMENDATIONS Libraries Water distribution system Parks Open space Circulation (mobility)Wastewater treatment capacity Drainage City Administrative Facilities Sewer collection system Fire Schools ITEM 12: Growth Management Recommendations OTHER COMMITTEE RECOMMENDATIONS ITEM 12: Growth Management Recommendations JULY 18, 2023 CITY COUNCIL DIRECTION 1.Return with plan to implement committee recommendations for facility standards 2.Present information about a distance-based parks standard for Parks during the Master Plan Update 3.Evaluate options for a Ballot Measure to amend Proposition H ITEM 12: Growth Management Recommendations JULY 18, 2023 CITY COUNCIL DIRECTION •Return with plan to implement recommendations to keep, modify and remove facility standards •Status: this report includes a proposed implementation plan ITEM 12: Growth Management Recommendations JULY 18, 2023 CITY COUNCIL DIRECTION •Regarding evaluation of distance-based park standard: •Sept. 2023 Parks & Recreation Master Plan Update – staff presented evaluation on proximity of parks to residential areas •City Council did not direct staff to further evaluate a distance-based park standard ITEM 12: Growth Management Recommendations JULY 18, 2023 CITY COUNCIL DIRECTION •Regarding ballot measure to increase $1M expenditure limit: •City Council directed staff to return with options •Status – Complete. Ballot measure as part of November 2024 Election. ITEM 12: Growth Management Recommendations IMPLEMENTATION PROGRAM Keep, Modify and Delete Facility Standards #Task Estimated Timing Estimated Cost 1 Obtain consultant for Tasks 3 & 4 6-9 months See Tasks 3 & 4 2 Review and update •Citywide Facilities and Improvements Plan •General Plan •Zoning Ordinance •City Council Policy 43 12-18 months Staff time No additional cost ITEM 12: Growth Management Recommendations IMPLEMENTATION PROGRAM Keep, Modify and Delete Facility Standards #Task Estimated Timing Estimated Cost 3 Evaluate and update as needed •Development impact fees •City Council Policy 17 •Municipal Code Sec. 5.09 24 months $100,000 - $120,000 ITEM 12: Growth Management Recommendations IMPLEMENTATION PROGRAM Keep, Modify and Delete Facility Standards #Task Estimated Timing Estimated Cost 4 Update Local Facility Management Plans for 2024 Housing Element Rezone sites •Local Facility Management Zones 1, 3, 5, 17, 18, 22, and 23 2-4 years $320,000 - $420,000 ITEM 12: Growth Management Recommendations Task 5: Next Housing Element Cycle, expected 2030/2031 PROPOSED ACTION Adopt a resolution: -Approving an implementation program for the Growth Management Committee recommendations ITEM 12: Growth Management Recommendations Eric Lardy, City Planner Community Development Department November 19, 2024 Plan to Implement Growth Management Committee Recommendations