HomeMy WebLinkAbout2022-11-03; Housing Element Implementation Status Update (Districts - All); Barberio, GaryT'.> ihe members of the:
CITY COUNCIL
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November 3, 2022
Council Memorandum
To: Honorable Mayor Hall and Members of the City Council
From: Gary Barberio, Deputy City Manager, Community Services
Jeff Murphy, Community Developmenti · ctor
Via: Geoff Patnoe, Assistant City Manager ·
Re: Housing Element Implementation Stat Update (Districts -All)
{city of
Carlsbad
Memo ID# 2022116
This memorandum provides a status on the implementation of the 2021-2029 Housing Element
and is an update to the Council Memorandum provided on September 1, 2022 (Attachment A).
Background
The City Council approved the 2021-2029 Housing Element on April 6, 2021. The Housing
Element contains many programs that must be implemented, many of which by the end of 2024.
Program 1.1 of the Housing Element requires the city to rezone properties as necessary to
accommodate the city's Regional Housing Needs Assessment (RHNA), or the number of homes
needed to accommodate forecasted growth through 2029.
On February 15, 2022, the City Council directed the study of two alternatives of potential housing
sites that, if rezoned or developed as estimated, would fulfill program requirements. While
completion of Program 1.1 must occur by April 2024 per state law, staff's intent has been to
present the rezoning to the City Council by Spring 2023.
While Program 1.1 is considered the most visible and most controversial of the housing
programs, there are several other required programs within the city's Housing Element that staff
is currently working on or will be initiating within the next 12 to 18 months.
Discussion
Preparation of a Supplemental Environmental Impact Report (SEIR) is underway to implement
Program 1.1. On September 14, 2022, a Notice of Preparation of the SEIR was published.
Notification of this was sent to over 5,000 property owners and tenants within 600-feet of the 18
potential housing sites. Additionally, the notice was sent via email, posted on the city's website,
and promoted through social media. Two scoping meetings were originally scheduled and were
held on September 26 (in person) and September 28 (virtually). Due to a large public interest, a
third scoping meeting was held on October 17 and the public comment period was extended to
end on October 26. Release of a _graft of the SEIR for public review is planned in 2023.
Community Services Branch
Community Development Department
1635 Faraday Avenue I Carlsbad, CA 92008 I 442-339-5088 t
Council Memo -Housing Element Implementation Status Update (Districts -All)
November 3, 2022
Page 2
Several sections of the SEIR, including air quality, greenhouse gas emissions, noise, and
transportation are dependent on travel demand modeling that estimates vehicle miles traveled
(VMT). It is standard that these estimates use a regional travel demand model, and the most
common practice is to contract with San Diego Association of Governments (SAN DAG) to
complete the modeling and provide the appropriate data. The data will also be incorporated into
the Climate Action Plan (CAP) Update, a separate but concurrent effort. The model SANDAG
would use is known as the Activity Based Model (ABM2+), which supported SANDAG's 2021
Transportation Regional Plan and is planned to be used by other local jurisdictions for similar
projects.
However, as was anticipated as a potential risk in the September 1, 2022, Council Memorandum,
SAN DAG released a general memo on September 30, 2022 (Attachment B), to all jurisdictions
and private entities that have pending modeling projects indicating that there is at least a six-to-
seven month delay. SAN DAG attributes the delays to the SAN DAG Board of Directors direction to
remove the road usage charge from the 2021 Regional Plan. SAN DAG indicated that a custom
memo to each jurisdiction explaining the delay would be released by October 12, 2022, but to
date no such memo has been sent. Additionally, SAN DAG did not respond to the city's letter
regarding the need for timely modeling of our housing sites, which was included as an
attachment to the September 1, 2022, Council Memorandum.
While it is typical for jurisdictions to use SAN DAG, in recent years the regional transportation
model has been made available publicly for consultants to use. Implementation of Program 1.1
has a deadline and must be completed by April 2024. Upon conversations with the city's
transportation sub-consultant, costs for the transportation sub-consultant to complete the work
would total $68,500, which is an additional $22,410 above the funding that was previously
authorized to be paid to SAN DAG for this work. Therefore, to ensure that the state's deadline of
April 2024 is met, staff is proposing to utilize contingency funds within the current contract in the
amount of $22,410 and updating the contract documents to proceed with having the
transportation sub-consultant complete the necessary travel demand modeling work. After this
update, the remaining contingency for this project will be $13,832, therefore if other costs arise
additional funding may need to be requested.
Delaying the Housing Element rezone work until SAN DAG has capacity to perform the required
modeling is not a feasible option as the delay will likely cause the city to miss the state mandated
April 2024 deadline ---a deadline that would result in serious negative implications if missed.
Recent news articles are reporting that more and more developers are using the authority under
the state Housing Accountability Act to develop by-right high-density housing in local cities who
lack a state certified Housing Element. This state authority, often referred to as the Builder's
Remedy, is a housing development streamlining tool that provides developers the option to file
an application for a housing development project that is not in conformance with a jurisdiction's
zoning or General Plan. In other words, in exchange for providing some affordable units, a
developer can ministerially (by-right) build a housing project at any density in any location in the
city, irrespective of public input or local laws. While stories involving housing development under
the Housing Accountability Act have largely been focused on cities in northern California, it was
Council Memo -Housing Element Implementation Status Update (Districts -All)
November 3, 2022
Page 3
recently reported that the City of Del Mar is now subject to processing its' first local Builders
Remedy project1.
While Carlsbad is one of eight jurisdictions in the county that has a state certified Housing
Element,2 the California Department of Housing & Community Development (HCD) is closely
monitoring certified cities to make sure they are timely completing those programs and tasks
required in their respective Housing Elements. HCD has made it clear that failure to meet
specified program deadlines jeopardizes state certification of a jurisdiction's Housing
Element. This not only applies to Program 1.1 (rezoning), but the roughly 35 ongoing housing
programs and 15 new housing programs that are listed in the city's certified Housing Element.
As of the date of this memorandum, the city remains on track to complete the assigned
programs and tasks required in the city's Housing Element. In fact, several significant housing
deliverables will be presented throughout calendar year 2023 for City Council decision, including
Program 1.1. Once those deliverables are completed, staff will shift their focus on developing
required programs and initiatives that address Affirmatively Furthering Fair Housing,3 a
significant local undertaking that has special interest with HCD.
Staff brings this to your attention as the work program for the Community Development
Department (more specifically, the Advanced Planning Division) for the next two to three years
will be predominately made up of housing related initiatives, as well as those projects included in
the recently adopted City Council Strategic Plan. Any new initiatives added to the work program
may jeopardize the ability to timely complete committed housing programs and strategic
planning related projects.
Next Steps
Release of the draft SEIR was anticipated for early 2023 followed by public hearings to consider
approval of site rezonings in spring 2023. It is now reasonable to expect these timeframes will be
pushed back from Spring 2023 to Late Summer/Early Fall 2023. Staff will provide an additional
update to the City Council when more timeframe certainty is available. Conducting public
hearings in 2023 keeps the city on track to complete all actions ahead of the April 2024 state
deadline to complete the rezonings.
Attachment: A. September 1, 2022: Council Memo -Housing Element Implementation Status
B. Letter from SAN DAG on modeling delay
1 Molnar, Philip. "Proposed Del Mar development would bring 259 new apartments to ocean bluff." Union Tribune. October 18,
2022.
2 Other cities with a certified housing element include the city of Encinitas, Imperial Beach, National City, San Diego, San Marcos,
Vista, and the County of San Diego)
3 Affirmatively Furthering Fair Housing (AB 686) is a group of programs and actions that remedy fair housing issues such as
racially segregated neighborhoods, housing discrimination, the lack of housing choice, and unequal access to housing-related
opportunities.
Council Memo -Housing Element Implementation Status Update (Districts -All)
November 3, 2022
Page 4
cc: Scott Chadwick, City Manager
Cindie McMahon, City Attorney
Paz Gomez, Deputy City Manager, Public Works
Ron Kemp, Assistant City Attorney
Jamie Wood, Environmental Sustainability Director
Tom Frank, Transportation Director
Sarah Lemons, Senior Program Manager
Nathan Schmidt, Transportation Planning and Mobility Manager
Katie Hentrich, Climate Action Plan Administrator
Jason Geldert, Engineering Manager
Eric Lardy, City Planner
Scott Donnell, Senior Planner
To the members of the:
CITY COUNCIL
Date '1/1/��CA \/CC✓
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Council Memorandum
September 1, 2022
To:
From:
Via:
Re:
Honorable Mayor Hall and Members of the City Council
Gary Barberio, Deputy City Manager, Community Services
Jeff Murphy, Community Developmen�ctor
Geoff Patnoe, Assistant City Manager
Housing Element Implementation Status (Districts - All) {city ofCarlsbad
Memo ID #2022095
This memorandum provides a status on the implementation of the 2021-2029 Housing Element,
particularly about the environmental review and schedule for rezoning of new housing sites to
accommodate the city's Regional Housing Needs Assessment (RHNA).
Background
The City Council approved the 2021-2029 Housing Element on April 6, 2021. The Housing
Element contains many programs that must be implemented throughout the housing cycle, most
of which by the end of 2024. Program 1.1 requires the city to rezone properties as necessary to
accommodate the city's RHNA, or the number of homes needed to accommodate state
forecasted growth through 2029. On February 15, 2022, the City Council directed the study of
two alternative maps of potential housing sites that if rezoned or developed as estimated, would
fulfill program requirements. While completion of Program 1.1 must occur by April 2024 per
state law, staff's intent has been to present the rezoning to the City Council by mid-2023.
Discussion
A necessary and important part of the process to rezone sites is environmental review. To study
potential impacts associated with this effort, preparation of a supplemental environmental
impact report (SEIR) to the 2015 General Plan Update EIR is currently underway. This report is
required under the California Environmental Quality Act (CEQA), and release of a draft of the
report for public review is planned in 2023.
Several sections of the SEIR, including air quality, greenhouse gas emissions, noise, and
transportation are dependent on travel demand modeling that estimates vehicle miles traveled
(VMT). It is standard that these estimates use a regional travel demand model, and the most
common practice is to contract with SAN DAG to complete the modeling and provide the
appropriate data. The data will also be incorporated into the Climate Action Plan (CAP) Update, a
separate but concurrent effort. The model SAN DAG will use is known as the Activity Based
Model (ABM2+), which supported SANDAG's 2021 Transportation Regional Plan and is planned
to be used by other local jurisdictions for similar projects.
Community Services Branch
Community Development Department
1635 Faraday Avenue I Carlsbad, CA 92008 I 442-339-5088 t
Attachment A
Council Memo - Housing Element Implementation Status (Districts -All)
September 1, 2022
Page 2
Due to the land use assumptions SAN DAG used in the Regional Transportation Plan1, ABM2+
must be tailored to individual jurisdictions. Originally, SAN DAG estimated the customizable
version would be available in late June. Based on this schedule, SAN DAG indicated it could "run"
a Carlsbad-specific model by late July or August, factoring in model run times and similar
requests from other jurisdictions. However, SAN DAG did not release the model until July 15 and
now estimates a model run specifically for Carlsbad will not occur until this fall. This could be
further delayed if SAN DAG proceeds with updating the 2021 Regional Transportation Plan to
remove the "Road User Charge" that was included in the projections.
The revised timeline from SAN DAG delays by at least a month project processing and release of
the city's draft SEIR. Additionally, staff is concerned about the vagueness of the "fall" timeframe
and the possibility that more delay that would impact not only the rezoning process, but the CAP
update. A delay could also result, for example, if the SAND AG Board directed changes to the
2021 Regional Plan that could be prioritized above agency requests.
Next Steps
Staff will continue to monitor SANDAG's progress and may consider what, if any, options are
available to acquire the necessary modeling data. For example, now that a customizable version
of ABM2+ is available, hiring a consultant to run a Carlsbad-specific model instead of SAN DAG is
possible. While this may provide more certainty in project scheduling, the feasibility, timing, and
expense of this option is not known. Carlsbad could also develop its own travel demand model
instead of utilizing SANDAG's; however, the time it would take to do so renders it an unlikely
alternative.
Additionally, staff recently sent a letter to SAN DAG, provided as Attachment A, outlining
Carlsbad's concerns with SANDAG's timing and reiterating the importance of the customization
required. The city and its consultant continue work on SEIR content not dependent on the
modeling results. Technical studies (e.g., biology) are already underway. Planning for public
scoping meetings is occurring as well. The meetings, one virtual and one in-person, which will
enable community input on potential environmental impacts, are a necessary step in the
preparation of an Environmental Impact Report. Staff is now planning the scoping meetings
taking place in September, after Labor Day, in recognition of the delay in project processing.
Meetings will be noticed to owners and occupants surrounding all potential housing sites along
with notice to the city's Housing Element email list, and staff will prepare a City Council
Memorandum to inform of the outreach and meeting dates.
Release of the draft SEIR was anticipated for early 2023 followed by public hearings to consider
approval of site rezonings in spring 2023. It is now reasonable to expect these timeframes may
be pushed at least a month. Staff will provide an additional update to the City Council when
1 The city sent SAN DAG two comment letters on the 2021 Regional Transportation Plan, including remarks on land use. The
letters are part of an October 21, 2021, Council Memorandum available at:
https://records.carlsbadca.gov/Weblink/DocView.aspx?id=5493674&dbid=0&repo=CityofCarlsbad&searchid=de2d7383-2f4b-
49fc-bdbb-3f5c39a02256.
Council Memo -Housing Element Implementation Status (Districts -All)
September 1, 2022
Page 3
more timeframe certainty is available. The anticipated summer 2023 approval hearings are still
ahead of the April 2024 state deadline to complete the rezonings.
Attachment: A. August 29, 2022, Letter to SAN DAG
cc: Scott Chadwick, City Manager
Cindie McMahon, City Attorney
Ron Kemp, Assistant City Attorney
Jamie Wood, Environmental Sustainability Director
Tom Frank, Transportation Director
Sarah Lemons, Senior Program Manager
Nathan Schmidt, Transportation Planning & Mobility Manager
Katie Hentrich, Climate Action Plan Administrator
Jason Geldert, Engineering Manager
Jennifer Horodyski, Associate Engineer
Eric Lardy, City Planner
Scott Donnell, Senior Planner
Aug. 29,2022
San Diego Association of Governments
Attn.: Ms. Coleen Clementson
401 B Street, Suite 800
San Diego CA, 92101
Via: SDForward@sandag.org
Attachment A
( City of
Carlsbad
RE: CITY OF CARLSBAD HOUSING ELEMENT IMPLEMENTATION AND REGIONAL MODELING REQUESTS
Dear Ms. Clementson:
The City of Carlsbad appreciates the opportunity to work with the San Diego Association of
Governments (SAN DAG) as a member agency and prides itself in being only one of the seven member
agencies with a Certified 2021-2029 Housing Element. As part of that housing element, there is
commitment to rezone various properties located throughout the city to accommodate our Regional
Housing Needs Assessment by 2023. To maintain our schedule, on Feb. 15, 2022, our City Council
. directed the study of two maps reflecting potential housing sites that if rezoned, would fulfill our
housing element program requirements.
A necessary and important part of the process to rezone sites is environmental review and the
preparation of a supplemental environmental impact report (SEIR) is currently underway with a
scheduled public review period taking place in earlier 2023. Several sections of the SEIR, including air
quality, greenhouse gas emissions, noise, and transportation are dependent on travel demand modeling
that estimates vehicle miles traveled (VMT).
It is standard practice that these estimates use a regional travel demand model, and the most common
practice is to contract with SAN DAG to complete the modeling and provide the appropriate data. The
data will also be incorporated into the Climate Action Plan (CAP) Update, which the city is also currently
updating. City staff and our transportation consultant have had conversations with SAN DAG since
December 2021 regarding the availability of the model and was advised that the model would be ready
in Summer 2022. Recently, SAN DAG staff have advised us that we are behind multiple other jurisdictions
and the earliest we could expect the model is in the Fall of 2022.
Carlsbad respectfully requests that SAN DAG support the city's service bureau requests as efficiently as
possible. Further delays in completion of the regional travel demand model could adversely impact our
rezone schedule and jeopardize our ability to timely meet our Housing Element program requirements,
thereby potentially placing our HCD housing element certification at risk. Additionally,· the city requests
that future decisions to update the 2021 Regional Transportation Plan respect the fact that Carlsbad and
other local jurisdictions have been waiting on the availability of the regional model for local projects for
some time and that further delays could result in additional liability, time, and costs for member
· agencies.
Community Development Department
1635 Faraday Avenue I Carlsbad, CA 92008-7314 I 442-339-5088 t
Ms. Clementson
Aug.29,2022
Page 2
If you have any questions or need additional information, please contact Eric Lardy, City Planner, at
eric.lardy@carlsbadca.gov.
JM:EL:mh
cc: Gary Barberio, Deputy City Manager, Community Services
Tom Frank, Transportation Director
Jamie Wood, Environmental Sustainability Director
Ron Kemp, Assistant City Attorney
Eric Lardy, City Planner
Scott Donnell, Senior Planner
Jason Geldert, Engineering Manager
Nathan Schmidt, Transportation Planning and Mobility Manager
Attachment B
Date: September 30, 2022
Memo to: Service Bureau Clients and Member Agency Staffs
From: Dr. Cindy Burke, Senior Director Data Science
Subject: Delays in Service Bureau Projects that Require Transportation Modeling
On Friday, September 23, 2022, the SAN DAG Board of Directors directed SAN DAG to
prepare a focused amendment to the 2021 Regional Plan with a supplemental CEQA
analysis that would remove the road usage charge (RUC) from the 2021 Regional Plan.
The amendment is a 12-month process and will occur at the same time staff is
preparing for the 2025 Regional Plan.
Preparing an amendment to the 2021 Regional Plan while staying on schedule to
complete a 2025 Regional Plan by the December 2025 deadline will require multiple
planning and modeling projects to be put on hold. This includes modeling work that
SANDAG conducts for local jurisdictions and external agencies via Service Bureau,
which will be delayed approximately six to seven months.
Please know that all entities currently in our Service Bureau queue will be contacted
individually in the next ten business days to discuss the delay and decide potential
alternatives to complete requests.
We recognize that many firms have been patiently waiting for SANDAG modeling
services to complete important jurisdictional work and we sincerely regret this delay.
401 B Street, Suite 800
San Diego, CA 92101-4231 (619) 699-1900 j SANDAG.org