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2020 Feb 04 - CC PACKETAGENDA EL SEGUNDO CITY COUNCIL (NEST CONFERENCE ROOM - 350 MAIN STREET The City Council, with certain statutory exceptions, can only take action upon properly posted and listed agenda items. Any writings or documents given to a majority of the City. Council regarding any matter on this agenda that the City received after issuing the agenda packet are available for public inspection in the City Clerk's office during normal business hours. Such Documents may also be posted on the City's website at www.elsegundo.org and additional copies will be available at the City Council meeting. Unless otherwise noted in the Agenda, the Public can only comment on City -related business that is within the jurisdiction of the City Council and/or items listed on the Agenda during the Public Communications portions of the Meeting. Additionally, the Public can comment on any Public Hearing item on the Agenda during the Public Hearing portion of such item. The time limit for comments is five (5) minutes per person. Before speaking to the City Council, please come to the podium and state: Your name and residence and the organization you represent, if desired. Please respect the time limits. Members of the Public may place items on the Agenda by submitting a Written Request to the City Clerk or City Manager's Office at least six days prior to the City Council Meeting (by 2:00 p.m. the prior Tuesday). The request must include a brief general description of the business to be transacted or discussed at the meeting. Playing of video tapes or use of visual aids may be permitted during meetings if they are submitted to the City Clerk two (2) working days prior to the meeting and they do not exceed five (5) minutes in length In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact City Clerk, 524-2305. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. MEETING OF THE EL SEGUNDO CITY COUNCIL TUESDAY, FEBRUARY 4, 2020 — 4:00 PM CALL TO ORDER ROLL CALL PUBLIC COMMUNICATION — (Related to Citv Business Only — 5 minute limit per person, 30 minute limit total) Individuals who have received value of $50 or more to communicate to the City Council on behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to addressing the City Council. Failure to do so shall be a misdemeanor and punishable by a fine of $250. SPECIAL ORDER OF BUSINESS: CLOSED SESSION: The City Council may move into a closed session pursuant to applicable law, including the Brown Act (Government Code Section §54960, et §Qg.) for the purposes of conferring with the City's Real Property Negotiator; and/or conferring with the City Attorney on potential and/or existing litigation, and/or discussing matters covered under Government Code Section §54957 (Personnel); and/or conferring with the City's Labor Negotiators; as follows.- DISCUSSION ollows. DISCUSSION OF PERSONNEL MATTERS (Gov't Code §54957): -1- matters 1. Performance Review Position: City Manager CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION (Gov't Code §54956.9(d)(1): -2- matters 1. D.R. Horton CA2, Inc. v. City of EI Segundo (LA Superior Court Case No. 19STCP04857) 2. O'Connor v. City of EI Segundo (U.S. District Court case no. 2:20-cv-00311) 2 E AGENDA EL SEOUNDO CITY COUNCIL COUNCIL CHAMBER - 350 MAIN STREET The City Council, with certain statutory exceptions, can only take action upon properly posted and listed agenda items. Any writings or documents given to a majority of the City Council regarding any matter on this agenda that the City received after issuing the agenda packet, are available for public inspection in the City Clerk's office during normal business hours. Such Documents may also be posted on the City's website at www.elsegundo.org and additional copies will be available at the City Council meeting. Unless otherwise noted in the Agenda, the Public can only comment on City -related business that is within the jurisdiction of the City Council and/or items listed on the Agenda during the Public Communications portions of the Meeting. Additionally, the Public can comment on any Public Hearing item on the Agenda during the Public Hearing portion of such item. The time limit for comments is five (5) minutes per person. Before speaking to the City Council, please come to the podium and state: Your name and residence and the organization you represent, if desired. Please respect the time limits. Members of the Public may place items on the Agenda by submitting a Written Request to the City Clerk or City Manager's Office at least six days prior to the City Council Meeting (by 2:00 p.m. the prior Tuesday). The request must include a brief general description of the business to be transacted or discussed at the meeting. Playing of video tapes or use of visual aids may be permitted during meetings if they are submitted to the City Clerk two (2) working days prior to the meeting and they do not exceed five (5) minutes in length. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact City Clerk, 524-2305. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL TUESDAY, FEBRUARY 4, 2020 - 6:00 P.M. CALL TO ORDER Moment of Silence in memory of Kobe Bryant and the eight passengers that perished on January 26, 2020. INVOCATION — Pastor Rob McKenna PLEDGE OF ALLEGIANCE — Mayor Pro Tem Pirsztuk SPECIAL PRESENTATIONS: a) Proclamation — Black History Month 3 3 ROLL CALL PUBLIC COMMUNICATIONS — (Related to Ciitv Business Only — 5 minute limit per person, 30 minute limit total) Individuals who have received value of $50 or more to communicate to the City Council on behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to addressing the City Council. Failure to do so shall be a misdemeanor and punishable by a fine of $250. While all comments are welcome, the Brown Act does not allow Council to take action on any item not on the agenda. The Council will respond to comments after Public Communications is closed. CITY MANAGER FOLLOW-UP COMMENTS — (Related to Public Communications) A. PROCEDURAL MOTIONS Consideration of a motion to read all ordinances and resolutions on the Agenda by title only. Recommendation — Approval. B. CONSENT CALENDAR 1. Approve Regular City Council Meeting Minutes of January 21, 2020 2. Approve Warrant Numbers 3029591 through 3029695 and 9001281 through 9001281 on Register No. 8a in the total amount of $651,236.11 and Wire Transfers from 1/13/20 through 1/19/20 in the total amount of $476,003.21. Approve Warrant Numbers 3029696 through 3029785 on Register No. 8b in the total amount of $412,742.41 and Wire Transfers from 1/20/20 through 1/26/20 in the total amount of $442,076.04. 3. Second reading and adoption of Ordinance for proposed text amendments related to accessory dwelling units in all residential zones. (This action is statutorily exempt from further environmental review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and CEQA Guidelines (14 California Code of Regulations §§ 15000, et seq.), because it involves the adoption of an ordinance regarding accessory dwelling units in a single-family or multifamily residential zone to implement the provisions of Sections 65852.1 and 65852.2 of the Government Code as set forth in Section 21080.17 of the Public Resources Code, pursuant to CEQA Guidelines § 15282(h)) 4 Ki C. PUBLIC HEARINGS 4. Introduction of an Ordinance for Zone Text Amendment creating a pilot program to allow and regulate Short -Term Rentals in the City's residential zoning districts through a Short-term Rental Permit process. (The proposed project is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Class 6 (Information Collection) (14 Cal. Code Regs. § 15306), because it involves creating a regulatory process for a use in the Residential zoning districts for a limited time) D. STAFF PRESENTATIONS 5. FY 2018-19 City Strategic Work Plan Year -End Report. 6. Proposed 2020 Legislative Platform which represents the City's positions on proposed regional, state and federal legislation. The platform is intended to provide clear direction to the City Manager to respond and take action on proposed legislation that will impact the City. 7. Receive and file FY 2018-2019 Year -End Financial Review of General Fund and Enterprise Funds. 8. Approval of new process to evaluate proposed developments and the Community Benefit Plans (public improvement and conditions) to be provided by developers in the Smoky Hollow Specific Plan area in exchange for additional development rights prior to consideration by Planning Commission and City Council. E. COMMITTEES, COMMISSIONS AND BOARDS PRESENTATIONS: F. REPORTS — CITY CLERK G. REPORTS —CITY TREASURER H. REPORTS — COUNCILMEMBERS Councilmember Pimentel — Councilmember Nicol — Mayor Pro Tem Pirsztuk — Mayor Boyles — I. REPORTS — CITY ATTORNEY J. REPORTS/FOLLOW-UP — CITY MANAGER 5 PUBLIC COMMUNICATIONS — (Related to Citv Business Onlv — 5 minute limit per person, 30 minute limit total) Individuals who have received value of $50 ormore to communicate to the City Council on behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to addressing the City Council. Failure to do so shall be a misdemeanor and punishable by a fine of $250. While all comments are welcome, the Brown Act does not allow Council to take action on any item not on the agenda. The Council will respond to comments after Public Communications is closed. CLOSED SESSION The City Council may move into a closed session pursuant to applicable law, including the Brown Act (Government Code Section §54960, et ssc.) for the purposes of conferring with the City's Real Property Negotiator, and/or conferring with the City Attorney on potential and/or existing litigation; and/or discussing matters covered under Government Code Section §54957 (Personnel); and/or conferring with the City's Labor Negotiators. REPORT OF ACTION TAKEN IN CLOSED SESSION (if required) MEMORIAL — Adjourn in the memory of Kobe Bryant and the eight passengers that perished on January 26, 2020. ADJOURNMENT POSTED: DATE: January 30, 2020 TIME: 2:05 PM NAME: Mona F. Shilling 1.1 roclamatt"On 61¢ofQbeeffunbo,"dami° WHEREAS, Black History Month affords special opportunity to become more knowledgeable about black heritage, and to honor the many black leaders who have contributed to the progress of our nation; and WHEREAS, Dr. Woodson initiated Black History Week, February 12, 1926; and for many years, the second week of February, chosen so as to coincide with the birthdays of Frederick Douglas and Abraham Lincoln, was celebrated by African Americans in the United States; and WHEREAS, in 1976, as part of the nation's bicentennial, Black History week was expanded and became established as Black History Month, and is now celebrated all over North America; and WHEREAS, such knowledge can strengthen the insight of all our citizens regarding the issues of human rights, the great strides that have been made in the crusade to eliminate the barriers of equality for minority groups, and the continuing struggle against racial discrimination and unconscious bias. NOW, THEREFORE, the Mayor and Members of the City Council of the City of El Segundo, California, hereby proclaim the month of February 2020 "BLACK HISTORY MONTH" and urge our citizens to join together in making this period of rededication to the principles of justice and equality for all people. 9dayor Drew Boy(es WayorBro Tem Caro(Tirs&uk CounciCMember Chris (Pimentel Counci(MemberScot Nicof 7 CLOSED SESSION MEETING OF THE EL SEGUNDO CITY COUNCIL — CANCELLED REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL TUESDAY, JANUARY 21, 2020 - 6:00 P.M. CALL TO ORDER — Mayor Pro Tem Pirsztuk at 6:00 PM INVOCATION — Pastor Rob McKenna, The Bridge Church PLEDGE OF ALLEGIANCE — Councilmember Nicol SPECIAL PRESENTATIONS: a) Marsha Hansen, EI Segundo Chamber of Commerce, CEO and Sheila Fowler, Chair of the Board announced this year's parade winners. a) Julie Todd, City of EI Segundo Senior Librarian, invited the community to "Library After Dark" on Friday, January 31, 2020 from 7:00-9:00 PM at the EI Segundo Library, with Photographer Henry Diltz and Designer John Van Hamersveld. b) Police Chief Bill Whalen introduced new EI Segundo Police Officer, David Perlich. ROLL CALL Mayor Boyles - Absent Mayor Pro Tem Pirsztuk - Present Council Member Pimentel - Present Council Member Nicol - Present PUBLIC COMMUNICATIONS — (Related to City Business Only — 5 minute limit per person, 30 minute limit total) Trevor Jones, resident, commented on DR Horton dispute and the impact it has had on their lives. CITY MANAGER FOLLOW-UP COMMENTS — (Related to Public Communications) Mark Hensley, City Attorney, commented on the DR Horton communication and stated to clarify, the City continues to communicate with DR Horton, and however, the City had no role in the sale of homes and Mr. Jones transaction. The City has an approved agreement with DR Horton, however, DR Horton is seeking to amend the agreement. The process has been lengthy and is hoping the item will go before the Planning Commission in February and to Council in March. In the meantime, the City has been looking at interim options to resolve the issues. PROCEDURAL MOTIONS A. Consideration of a motion to read all ordinances and resolutions on the Agenda by title only. MINUTES OF THE REGULAR COUNCIL MEETING JANUARY 21, 2020 PAGE 1 OF 6 FP MOTION by Council Member Nicol, SECONDED by Council Member Pimentel to read all ordinances and resolutions on the agenda by title only. MOTION PASSED BY UNANIMOUS VOICE VOTE. 3/0 B. CONSENT CALENDAR All items listed are to be adopted by one motion without discussion and passed unanimously. If a call for discussion of an item is made, the item(s) will be considered individually under the next heading of business. Approve Regular City Council Meeting Minutes of December 17, 2019 and Special City Council Meeting Minutes of January 9, 2020 and January 14, 2020. 2, Approve Warrant Numbers 3029136 through 3029254 and 9001235 through 9001241 on Register No. 6a in the total amount of $933,722.36 and Wire Transfers from 12/09/2019 through 12/15/2019 in the total amount of $3,210,681.93. Approve Warrant Numbers 3029255 through 3029390 and 9001242 through 9001243 on Register No. 6b in the total amount of $403,899.59 and Wire Transfers from 12/16/2019 through 12/22/2019 in the total amount of $47,914.09. Approve Warrant Numbers 3029391 through 3029461 on Register No. 6c in the total amount of $348,280.26 and Wire Transfers from 12/23/2019 through 12/29/2019 in the total amount of $368,237.76. Approve Warrant Numbers 3029462 through 3029538 on Register No. 7a in the total amount of $289,137.79 and Wire Transfers from 12/30/2019 through 1/5/2020 in the total amount of $709,843.82. Approve Warrant Numbers 3029539 through 3029590 and 9001244 through 9001280 on Register No. 7b in the total amount of $240,046.11 and Wire Transfers from 1/6/2020 through 1/12/2020 in the total amount of $2,673,775.79. Ratified Payroll and Employee Benefit checks; checks released early due to contracts or agreement; emergency disbursements and/or adjustments; and wire transfers. 3. Approve and authorize the City Manager to award a standard Professional Services Agreement No. 5842 to MNS Engineers, Inc., in a form approved by the City Attorney, for design services for the EI Segundo Boulevard Improvements in the amount of $448,773.00 and authorize an additional $16,227.00 for design related contingences. Project No. ENG 20-01. (Fiscal Impact: $465,000.00; $223,000.00 from Prop C Local Return, $241,500.00 from Measure M Local Return) 4. Waive second reading and adopt Ordinance No. 1612 to require food and beverage providers implement an "upon -request" policy for single use, plastic straws, stirrers and utensils. Pursuant to the provisions of the California Environmental Quality Act, the proposed Ordinance is categorically exempt from further review as a Class 7 exemption (14 CFR § 15307, Actions by Regulatory Agencies for Protection of Natural Resources), because the Ordinance is intended to reduce the amount of waste generated from single -use plastic products. (Fiscal Impact: $2,000.00) MINUTES OF THE REGULAR COUNCIL MEETING JANUARY 21, 2020 PAGE 2OF6 5. Approve and authorize the City Manager to award a standard Public Works Contract No. 5843 to Henkels & McCoy, Inc., in a form approved by the City Attorney, for the Fiber Optic Vault Lid Replacement Project in the amount of $127,102.29 and approve an additional $19,000.00 for construction related contingences. Project No. PW19-08. (Fiscal Impact: $146,102.29) 6. Approve and authorize the City Manager to award a standard Public Works Contract No 5844 to Palp, Inc. DBA Excel Paving Company, (in the amount of $217,400.00 and $53,740.00 for additional work and construction related contingences) and AKM Consulting Engineers Agreement No. 5845 (in the amount of $23,970.00 and $2,400.00 for inspection related contingences), in a from approved by the City Attorney, for construction and inspection for the Walnut Avenue Drainage and Street Improvement Project. Project No. PW 19- 09. (Fiscal Impact: 297,510.00 as adopted in budget) 7. Accept as complete and authorize the City Clerk to file a Notice of Completion with the County Recorder's Office for the EI Segundo Boulevard On -Street Parking Pilot Project. Project No. PW 19-15. (Fiscal Impact: $74,988.00 — Smoky Hollow Parking In -Lieu) 8. Waive the second reading and adopt Ordinance No. 1611 to amend Section 8-4-3 of the EI Segundo Municipal Code to set citywide speed limits pursuant to the City of EI Segundo Engineering and Traffic Survey for Speed Zoning. (Fiscal Impact: None) 9. Approve and authorize the City Manager to execute a three year agreement, Agreement No. 5846, with Innovative Interfaces, in a form approved by the City Attorney, to provide online catalog services (Sierra, Encore, Content Cafe and SIP2) at a flat rate, as well as to provide remote hosting of the Library's catalog and customer data. (Fiscal Impact: $68,111.39 for FY2019-20; $179,151.95 over three (3) years) 10. Approve and authorize the City Manager, in a form approved by the City Attorney, Contract No. 5847 with Robert Half International, Inc. (dba Officeteam and Accountemps) for technical consulting, business analysis, project management and administrative services for the Information Systems Department. (Fiscal Impact: $600,000.00) 11. PULLED BY MAYOR PRO TEM PIRSZTUK 12. Adopt and approve City exam plan for Police Sergeant promotional examination and authorize City Manager (Personnel Officer or designee) to make necessary changes to effectuate the Police Sergeant promotional examination plan. (Fiscal Impact: None) MINUTES OF THE REGULAR COUNCIL MEETING JANUARY 21, 2020 PAGE 3OF6 13. Adopt Resolution No. 5198 amending amend Senior Lifeguard salary Step 1 through Step 6 on the part-time/hourly classification salary schedule; approve the correction of the Senior Lifeguard Salary on the Part-Time/Hourly Classifications Salary Schedule, adopt the Resolution amending the Part- Time/Hourly Classifications Salary Schedule, authorize the City Manager and/or Finance Director to take budgetary actions consistent with the adoption of the amended salary schedule and authorize the Finance Director to make appropriate changes. MOTION by Council Member Pimentel, SECONDED by Council Member Nicol approving Consent Agenda items 1, 2, 3, 4, 5, 6, 8, 9, 10, 12, and 13. MOTION PASSED BY UNANIMOUS VOICE VOTE. 3/0 PULLED ITEMS: 11. Adopt Resolution to revise City observed holiday table to include the third Monday in February (President's Day). (Fiscal Impact: None) David Serrano, Human Resources Director, answered Council questions. Council Discussion MOTION by Mayor Pro Tem Pirsztuk, SECONDED by Council Member Nicol adopting Resolution No. 5197 revising City observed holiday table to include the third Monday in February (President's Day); amending Administrative Code Section 1A2.139 and authorize City Manager to make necessary operational changes to effectuate City recognized holidays. MOTION PASSED BY UNANIMOUS VOICE VOTE. 3/0 C. PUBLIC HEARINGS 14. Introduction of proposed ESMC text amendments related to accessory dwelling units in all residential zones. This action is statutorily exempt from further environmental review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and CEQA Guidelines (14 California Code of Regulations §§ 15000, et seq.), because it involves the adoption of an ordinance regarding accessory dwelling units in a single-family or multifamily residential zone to implement the provisions of Sections 65852.1 and 65852.2 of the Government Code as set forth in Section 21080.17 of the Public Resources Code, pursuant to CEQA Guidelines § 15282(h). (Fiscal Impact: None) Mayor Pro Tem Pirsztuk stated this was the time and place to conduct a Public Hearing regarding proposed ESMC text amendments related to accessory dwelling units in all residential zones. City Clerk Weaver stated that proper notice had been given in a timely manner and that written communication had been received in the City Clerk's office. MINUTES OF THE REGULAR COUNCIL MEETING JANUARY 21, 2020 PAGE 4OF6 11 Sam Lee, Planning, Building and Safety Director and Gregg McClain, Planning Manager, gave a presentation and answered questions on the item. Public Comments: None MOTION by Council Member Nicol, SECONDED by Council Member Pimentel to close the public hearing. MOTION PASSED BY UNANIMOUS VOICE VOTE. 3/0 Council discussion Mark Hensley, read by title only: ORDINANCE NO. 1613 AN ORDINANCE AMENDING TITLE 15 OF THE EL SEGUNDO MUNICIPAL CODE RELATED TO ACCESSORY DWELLINGS UNITS TO COMPLY WITH STATE LAW Council Member Pimentel introduced the item. Second reading and possible adoption is scheduled for the regular meeting of the City Council on February 4, 2020. 15. Continue the public hearing regarding a Zone Text Amendment to create a pilot program to allow and regulate Short -Term Rentals in the City's residential zoning districts through a Short-term Rental Permit process to the regular City Council meeting of February 4, 2020. The proposed project is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Class 6 (Information Collection) (14 Cal. Code Regs. § 15306), because it involves creating a regulatory process for a use in the Residential zoning districts for a limited time. (Fiscal Impact: None) Mayor Pro Tem Pirsztuk stated this was the time and place to continue a Public Hearing regarding a Zone Text Amendment to create a pilot program to allow and regulate Short -Term Rentals in the City's residential zoning districts through a Short-term Rental Permit process. Public Hearing to be continued to the regular City Council meeting of February 4, 2020. D. STAFF PRESENTATIONS 16. Approve and authorize the City Manager to sign a successor agreement no. 5848 with the South Bay Regional Public Communications Authority SBRPCA to continue to provide the City emergency police and fire dispatch services. (Fiscal Impact: None for FY2019-2020) Police Chief Whalen and Fire Chief Donovan and SBRPCA Executive Director, Erick Lee gave a presentation and answered Council questions on the item. Council discussion MINUTES OF THE REGULAR COUNCIL MEETING JANUARY 21, 2020 PAGE 5OF6 12 MOTION by Council Member Nicol, SECONDED by Council Member Pimentel to approve and authorize the City Manager to sign a successor agreement with the South Bay Regional Public Communications Authority (SBRPCA). MOTION PASSED BY UNANIMOUS VOICE VOTE. 3/0 E. COMMITTEES, COMMISSIONS AND BOARDS PRESENTATIONS: F. REPORTS — CITY CLERK — Passed G. REPORTS — CITY TREASURER — Not present H. REPORTS — COUNCILMEMBERS Councilmember Pimentel — Attended the LA County Sanitation District meeting and reported back EI Segundo's robust recycling numbers for the Cal Recycle program. Reported and updated COG and LAWA report will be forthcoming next month concerning various departments. Councilmember Nicol — Announced the City's new Website launches on January 28, 2020. Mayor Pro Tem Pirsztuk — Commented on the upcoming Website launch. Mayor Boyles — Absent I. REPORTS — CITY ATTORNEY — Briefly commented on Sacramento and the ever changing housing legislation. J. REPORTS/FOLLOW-UP — CITY MANAGER — Will work with the City Attorney and strategize on how to respond to Mr. Jones communication regarding Waypointe (DR Horton). Gave a brief update on upcoming Agenda items. PUBLIC COMMUNICATIONS — (Related to City Business Only — 5 minute limit per person, 30 minute limit total) None ADJOURNMENT at 7:57 PM Tracy Weaver, City Clerk MINUTES OF THE REGULAR COUNCIL MEETING JANUARY 21, 2020 PAGE 6OF6 13 3029591 - 3029695 9001281 - 9001281 001 GENERALFUND 260,076.00 104 TRAFFIC SAFETY FUND 106 STATE GAS TAX FUND 106 ASSOCIATED RECREATION ACTIVITIES FUND - 109 ASSET FORFEITURE FUND 3,379.21 110 MEASURE R 111 COMM DEVEL. BLOCK GRANT 112 PROP"A"TRANSPORTATION 1.40 114 PROP"C"TRANSPORTATiON - 115 AIR QUALITY INVESTMENT PROGRAM 116 HOME SOUND INSTALLATION FUND 117 HYPERION MITIGATION FUND lie TDA ARTICLE 3 - SB 621 BIKEWAY FUND 119 MTA GRANT - 121 FEMA 120 C O.P.S. FUND 122 L,A.WA FUND 123 PSAF PROPERTYTAX PUBLICSAFETY 124 FEDERAL GRANTS 125 STATE GRANT 126 AN COPA PROGRAM OVERSIGHT SURCHARGE 68000 129 CERTIFIED ACCESS SPECIALIST PROGRAMS 3.80 202 ASSESSMENT DISTRICT R73 - 301 CAPITAL IMPROVEMENT FUND 54,51208 302 INFRASTRUCTURE REPLACEMENT FUND 405 FACILITIES MAINTENANCE - 501 WATER UTILITY FUND 2,916.76 502 WASTEWATER FUND 273,476.11 503 GOLF COURSE FUND - SIH PARK VISTA 505 SOLID WASTE 601 EQUIPMENT REPLACEMENT 16.491.68 602 LIABILITY INSURANCE 15,60,00 603 WORKERS COMP. RESERVEIINSURANCE 701 RETIREDEMP INSURANCE - 702 EXPENDABLE TRUST FUND - DEVELOPER FEES 19-439.09 703 EXPENDABLE TRUST FUND - OTHER 5,280.OD 706 OUTSIDE SERVICES TRUST TOTAL WARRANTS 5 651,236 II STATE OF CALIFORNIA COUNTY OF LOS ANGELES Informalien on actual expenditures is available in the Director of Finance's office in the City of Et Segundo - I cerl'dy, as to the accuracy of the Demands and the availability of fund for payment thereof For Approval: Regular checks held for City council authorization to release CODES: R = Computer generated checks for all non-amergencylurgency payments for malerials, supplies and services in support of City Operations For Ratification: A = Payroll and Employee Benefit checks B - F = Computer generated Early Release disbursements arMlor adjustments approved by the City Manager. Such as payments for utility services, petty cash and employee Navel expense reimbursements, various refunds, contracl employee services consistent with cumem contractual agreements, instances where pmmpl payment discounts can be obtained or tale payment penalties can be avoided or when a situation arises that the City Manager approves. H = Handwrillsn Eady Release disbursements angor adjustments approved by the City Manager YINANCE DIRECTOR "L.— CITY MANAGER DATE: �*• DATE- : - N CITY OF EL SEGUNDO WARRANTS TOTALS BY FUND DATE OF APPROVAL' AS OF 0210020 VOID CHECKS DUE jr)AL.IGNMENT: A VOID CHECKS DUE TO INCORRECT CHECK DATE- VOID ATSVOID CHECKS DUE TO COMPUTER SOFTWARE ERROR: NOTES REGISTER 0 Be CITY OF EL SEGUNDO PAYMENTS BY WIRE TRANSFER 1113120 THROUGH 1119/20 Date Payee Description 1/13/2020 IRS 299,266.21 Federal 941 Deposit 1/13/2020 Employment Development 5,041.97 State SDI payment 1/13/2020 Employment Development 63,671.48 State PIT Withholding 1/14/2020 Nationwide NRS EFT 34,863.86 EFT 457 payment 1/14/2020 State of CA EFT 1,452.91 EFT Child support payment 1/16/2020 Lane Donovan Golf Ptr 24,171.06 Payroll Transfer ' 1/6/20-1/12120 Workers Comp Activity 23,591,58 SCRMA checks issued 116/20-1/12/20 Liability Trust - Claims 21,378.53 Claim checks issued 116/20-1112/20 Retiree Health Insurance 0.00 Health Reimbursment checks issued 1/6120-1112120 Flexible Spending Account 2,565.61 Employee Health and DCA card charges 476,003.21 DATE OF RATIFICATION: 1117120 TOTAL PAYMENTS BY WIRE: Certified as to the accuracy of the wire transfers by: Deputy City Treas rer I! C?a;e Vance:Arof FDate Manager Date Information on actual expenditures is available in the City Treasurer's Office of the City of EI Segundo. 476,003.21 P:1CItyTreasurerlWire TransferslWire Transfers 10-01-19 to 9-30-20 1/17/2020 1/1 15 CITY OF EL SEGUNDO WARRANTS TOTALS BY FUND 3029696 - 3029785 Got GENERAL FUND 305,01E 57 101 TRAFFIC SAFETY FUND 106 STATEGASTAXFUNO - lee ASSOCIATED RECREATION ACTIVITIES FUND 109 ASSET FORFEITURE FUND 4,091,29 110 MEASURE R - ill COMM DEVEL. FLOCK GRANT 112 PROP-A"TRANSPORTATION 69000 114 PROP"C-TRANSPORTATKIN Its AIR QUALITY INVESTMENT PROGRAM 115 HOME SOUND INSTALLATION FUND - 117 HYPERION MITIGATION FUND 5560 118 TDA ARTICLE 3 - SB 821 BIKEWAY FUND 119 MTA GRANT - 121 FEMA 120 C O P S. FUND 122 L.A.WA FUND - 123 PSAF PROPERTY TAX PUBLIC SAFETY - 124 FEDERAL GRANTS - 125 STATE GRANT 126 A/P CUPAPROGRAM OVERS1G"T SURCHARGE 129 CERTIFIED ACCESS SPECIALIST PROGRAMS - 202 ASSESSMENT DISTRICTX?3 - 301 CAPITAL IMPROVEMENT FUND 302 INFRASTRUCTURE REPLACEMENT FUND 405 FACILITIES MAINTENANCE Sol VIA' E R II I II I IV.- lir+ D 6,50997 502 WASTIEWATC-RFUND 2,50122 503 GOLF COURSE FUND 25,97580 504 PARK VISTA 72.60 505 SOLID WASTE - 601 EQUIPMENT REPLACEMENT 35,19E 13 602 LIABILITY INSURANCE 11,16623 603 WORKERS COMP. RESERVEIMISURANCE 701 RETIRED EMP INSURANCE 702 EXPENDABLE TRUST FUND -DEVELOPER FEES 20,89000 703 EXPENDABLE TRUST FUND -OTHER 50000 ?Do OUTSIDE SERVICES TRUST TOTAL WARRANTS S 412,742.41 STATE OF CALIFORNIA COUNTY OF LOS ANGELES Information an actual expenditures is available in the Director of Finances once in the City of EI Segundo I certify as to the accuracy of the Demands and the availability of fund for payment thereof For Approval: Regular checks held for City council authorization to release. CODES: R = Computer generated checks for all non-emergency/urgency payments for materials, supplies and services in support of City Operalions For Ratification: A= Payroll and Employee Benefit checks B - F - Computer generated Early Release disbursemems and/or adjustments approved by the City Manager. Such as: payments for utility services, pally cash and employee Iravel expense reimbursements, various refunds, contract employee services consistent with current contractual agreements, instances where prompt payment discounts can be obtained or Isle payment penallies an be avoided or when a siWalion arises that the City Manager approves H = Handwritten Ee1ly Refers! bu .Ls ara0ar ad/uslments approved by the City Manager. FINANCEDIRECTOR CfTY MANAGER DATE: DATE :19 DATE OF APPROVAL AS OF 02104120 VOID CHECKS DUE TO ALIGNMENT: N/A VOID CHECKS DUE TO INCORRECT CHECK DATE: VOID CHECKS DUE TO COMPUTER SOFTWARE ERROR: NOTES ,r. VV icy rZ�� REGISTER N 8b CITY OF EL SEGUNDO PAYMENTS BY WIRE TRANSFER 1/20120 THROUGH 1126/20 Date Payee Description 1/21/2020 Cal Pers 9,994.12 EFT Retirement Safety-Fire-PEPRA New 25020 1121/2020 Cal Pers 17,376.05 EFT Retirement Safety-Police-PEPRA New 25021 1/21/2020 Cal Pers 33,375.51 EFT Retirement Misc - PEPRA New 26013 1/21/2020 Cal Pers 52,826.54 EFT Retirement Misc - Classic 27 1/21/2020 Cal Pers 70,415.49 EFT Retirement Safety Police Classic - 1st Tier 28 1/21/2020 Cal Pers 52,264.43 EFT Retirement Safety Fire- Classic 30168 1/21/2020 Cal Pers 5,127.42 EFT Retirement Sfty Police Classic -2nd Tier 30169 1/21/2020 Cal Pers 200.00 Admin Fee - Late Payroll Reporting 1/21/2020 Cal Pers 200.00 Admin Fee - Late Payroll Reporting 1/21/2020 Cal Pers 91,933.08 2020 Replacement Benefit Contributions 1/23/2020 Unum 113.70 Lang Term Care Premium - Dec. 1/24/2020 Manufacturers & Traders 27,692.44 457 payment Vantagepoint 1/24/2020 Manufacturers & Traders 942.31 401(a) payment Vantagepoint 1/24/2020 Manufacturers & Traders 550.00 IRA payment Vantagepoint 1/24/2020 Nationwide NRS EFT 34,367.84 EFT 457 payment 1/24/2020 State of CA EFT 1,181.97 EFT Child support payment 1/13/20-1119120 Workers Comp Activity 20,117.16 SCRMA checks issued 1/13120-1119120 Liability Trust - Claims 0.00 Claim checks issued 1113/20-1/19/20 Retiree Health Insurance 18,927.41 Health Reimbursment checks issued 1/13120-1119/20 Flexible Spending Account 4,470.57 Employee Health and DCA card charges 442, 076.04 DATE OF RATIFICATION: 1127120 TOTAL PAYMENTS BY WIRE: 442,076.04 Certified as to the accu cy of the wire transfers by: Deputy City Treasu er II Date 1 f a7 Direc r finance 1Date �A'S 6C QV ] i - ?C1- 2 C) City Manager Date Information on actual expenditures is available in the City Treasurer's Office of the City of El Segundo. P:1City TreasurerlWire TransferslWire Transfers 10-01-19 to 9-30-20 1/27/2021 1/1 EL SEGUNDO CITY COUNCIL MEETING DATE: February 4, 2020 AGENDA STATEMENT AGENDA HEADING: Consent AGENDA DESCRIPTION: Proposed El Segundo Municipal Code amendments related to accessory dwelling units in all residential zones. This action is statutorily exempt from further environmental review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and CEQA Guidelines (14 California Code of Regulations §§ 15000, et seq.), because it involves the adoption of an ordinance regarding accessory dwelling units in a single-family or multifamily residential zone to implement the provisions of Sections 65852.1 and 65852.2 of the Government Code as set forth in Section 21080.17 of the Public Resources Code, pursuant to CEQA Guidelines § 15282(h) (Fiscal Impact: None with this action.) RECOMMENDED COUNCIL ACTION: 1. Waive second reading and adopt Ordinance No. 1613 ATTACHED SUPPORTING DOCUMENTS: 1. Ordinance No. 1613 2. Staff report for January 21, 2019, City Council meeting FISCAL IMPACT: None. Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A STRATEGIC PLAN: None (State mandate) PREPARED BY: Gregg McClain, Planning Manage ? REVIEWED BY: Sam Lee, Planning and Building afety Director APPROVED BY: Scott Mitnick, City Manager On January 21, 2020, the City Council introduced an Ordinance amending certain sections in Title 15 of the EI Segundo Municipal Code pertaining to accessory dwelling units (ADUs). The Council may waive second reading and adopt the Ordinance. If the Ordinance is adopted by the City Council at the February 3 meeting, the effective date of the Ordinance will be March 4, 2020, which is 30 days from the adoption date. Further discussion concerning sewer system capacity In previous public hearings, both the Planning Commission and City Council requested additional information related to sewer capacity in the residential neighborhoods and potential impacts of ADUs. Planning and Public Works staff discussed this and concluded the present system of monitoring sewer capacity would identify and correct any problems prior to maximum capacity becoming a serious concern. im Currently, the Sewer Master Plan is re-evaluated every ten years or so and that process includes a thorough evaluation of the capacity of the lines. When a line is identified as approaching its functional limit, it is prioritized and scheduled for replacement with a larger pipe through the CIP process and funded by the Sewer Fund. This industry standard approach has worked well for El Segundo and other public agencies. Any approach that places a limitation on ADU construction within a defined area based on sewer capacity would be based on the Sewer Master Plan and the maintenance/replacement schedule that is based on that plan. The last re-evaluation of the Sewer Master Plan was completed in 2015 at a cost of about $75,000. According to the City's Engineering Division, there are no sewer lines in the residential areas that are in need of immediate or near future upgrade based on the re- evaluation that accounted for potential future growth. The next one will be in about five years from now and will likely be more costly. By then, any impact to the system caused by ADUs should be evident if it is measurable. In light of the cost, accelerating the comprehensive sewer evaluation process is not practical. However, if staff sees an unusually high concentration of ADU applications in small localized areas, the City Engineer will be alerted. The local sewer pipelines can be quickly and easily analyzed for capacities issues and appropriate actions taken. Planning and Building Safety staff will share ADU data with the City Engineer to manage this Since ADUs were made widely available mid -2017, only 11 have completed construction out of 34 building permits issued in El Segundo. Though the rate of applications will certainly increase with the new ordinance, even if it quadrupled the current rate, we would expect only about 30 permits per year. To put that into perspective, there are just over 3,000 single family homes in El Segundo and just over 7,000 housing units overall. The addition of 100 ADUs per year, an unlikely number, would still represent only 1.4% increase in households to the residential sewer system in the first year 2 19 ORDINANCE NO. 1613 AN ORDINANCE AMENDING TITLE 15 OF THE EL SEGUNDO MUNICIPAL CODE RELATED TO ACCESSORY DWELLING UNITS TO COMPLY WITH STATE LAW The City Council of the City of EI Segundo does ordain as follows: SECTION 1: The City Council finds and declares as follows: A. On February 15, 2005, the City Council adopted Ordinance No. 1381 which added article E to EI Segundo Municipal Code (ESMC) chapter 15-4 which provided for the creation of second dwelling units; the ordinance limited the location of second dwelling units to the R-1 zone and applied certain development standards as permitted by law; B. On September 27, 2016, Assembly Bill No. 2299 and Senate Bill No. 1069 were both approved. These bills amended state law to facilitate the development of accessory dwelling units (formerly termed "second dwelling units"); C. On June 6, 2017, the City Council adopted an ordinance amending the City's municipal code to allow accessory dwelling units in compliance with state law, but also limited the location of accessory dwelling units to certain areas within the City as described by this ordinance and pursuant to Government Code section 65852.2(a)(1)(A), including disallowing the conversion of garages into accessory dwelling units; D. In October 2019, the Governor signed Assembly Bill 881 (Bloom) into law, which broadened state law regarding accessory dwelling units and indicated that the City must allow garages to be converted into accessory dwelling units; AB 881 took effect on January 1, 2020; E. On December 12, 2019, the Planning Commission held a public hearing to receive public testimony and other evidence regarding the proposed ordinance; the Planning Commission adopted Resolution No. 2881 recommending the City Council adopt the proposed ordinance, and also that the City Council reserve its right to conduct studies on the impacts of accessory dwelling units on water and sewer services and the impact of accessory dwelling units on traffic flow and public safety, in the event that the City wishes to designate areas where accessory dwelling units may not be allowed pursuant to Government Code section 65852.2(a)(1)(A); F. The City Council desires to comply with state law by adopting this Ordinance, while reserving its right to conduct studies evaluating the adequacy of water and sewer services; WE G. This Ordinance and its findings are made based upon the entire administrative record including the Planning Commission's recommendation, testimony and evidence presented to the City Council at its December 12, 2019 hearing, and the staff report submitted by the Planning and Building Safety Department. SECTION 2: Factual Findings and Conclusions. The City Council finds that introducing and adopting the proposed ordinance will amend the portions of the City's municipal code that address ADUs to bring them into compliance with state law. SECTION 3: General Plan Findings. As required under Government Code Section 65860, the ESMC amendments proposed by the Ordinance are consistent with the EI Segundo General Plan as follows: A. The proposed zone text amendment is in conformity with the Land Use Element goals, objectives and policies. Specifically, the zone text amendment is consistent with Land Use Element Goal LU3 and Objectives LU3-1 and LU3-2 in that the amendment will: a) facilitate the development of accessory dwelling units in the City's R-1 and R-2 zones as required by Section 65852.2 of the Government Code; and B. The proposed zone text amendment is consistent with the Housing Element goals, objectives and policies. Specifically, the zone text amendment is consistent with Goal No. 4 to remove governmental constraints on housing development, in that it will remove the location restrictions, lot size, and parking requirements for accessory dwelling units. In addition, the zone text amendment is consistent with the goal of assisting in the production of affordable housing and Program No. 3 in that it will facilitate the development of accessory units on R-1 zoned lots. Further, the zone text amendment is consistent with Program No. 6 to facilitate development on underutilized sites and on small lots, particularly on small lots in the R-2 zone through the elimination of parking requirements for accessory dwelling units. SECTION 4: Zone Text Amendment Findings. In accordance with ESMC Chapter 15-26 and based on the findings set forth in Section 2, the proposed zone text amendment is consistent with and necessary to carry out the general purpose of ESMC Tile 15 as follows: A. It is consistent with the purpose of the ESMC, which is to serve the public health, safety, and general welfare and to provide the economic and social advantages resulting from an orderly planned use of land resources; and B. It is necessary to facilitate the development process and ensure the orderly location of uses within the City. 2 21 SECTION 5: Environmental Assessment. Because of the facts set forth in Section 2, the proposed zone text amendment is statutorily exempt from further environmental review under the California Environmental Quality Act (California Public Resources Code §§21000, et seq., "CEQA") and CEQA Guidelines (14 California Code of Regulations §§15000, et seq.), because it involves the adoption of an ordinance regarding accessory dwelling units in a single-family or multifamily residential zone to implement the provisions of section 65852.2 of the Government Code as set forth in section 21080.17 of the Public Resources Code, pursuant to CEQA Guidelines section 15282(h). SECTION 6: ESMC Title 15, Section 15-1-6 (Definitions) is amended by adding the following: "ACCESSORY DWELLING UNIT, JUNIOR: A unit that is no more than 500 square feet in size and contained entirely within an existinq single-family structure. A junior accessory dwellinq unit may include separate sanitation facilities. or may share sanitation facilities with the existinq structure. JUNIOR ACCESSORY DWELLING UNIT: See "Accessory Dwelling Unit, Junior." SECTION 7: ESMC Title 15, Chapter 4, Article A (Single -Family Residential (R-1) Zone), Section 6, Subsection H is amended as follows: "H. Detached Accessory Buildings, het-I-nc4ud+ng Dotco.d nGGessery D Qel-Ii-ng "nit6 As as Defined In Section 15-1-6 Of This Title: 1. Any All detached accessory bu4!in8 or combination of n000roory b,.*4Rgs-, except tho garag4e-, structures may not exceed 1,200 square feet qross floor area in aqqreqate per parcel be4a-rgor in gro&t fl;. aoaa than -&w -hundred --e feet; 2. Except as permitted in Chapter 15-4E related to accessory dwelling units. Detoohod detached accessory buildings are limited to two {2; stories, and may include an attic, which may be used for storage purposes only, provided that access to the attic is not from permanently fixed stairs (pull down type stairs are permitted), no plumbing is permitted, and electrical fixtures are limited to the minimum required by the California Building Code and California Electrical Code; 3. Unless permitted as an accessory dwelling unit, detached accessory buildings may not contain a kitchen or kitchen facilities, a bathtub or shower and may not be used for sleeping purposes or as an "R" occupancy, as defined by the California Building Code, except that they may contain a sink and a toilet; 4. Unless permitted as an accessory dwelling unit. Detaehed detached accessory buildings may not be rented or used as a separate dwelling unit; and 5. Before the City issues a building permit for a detached accessory structure, except a—garage--an accessory dwellinq unit, the Director will require that a 3 22 covenant running with the land be recorded stating that the accessory structure may not be used ;nit cr used in violation of this section." SECTION 8: ESMC Title 15, Chapter 4, Article A (Single -Family Residential (R-1) Zone), Section 6-1, Subsection J is amended as follows: "J. Detached Accessory Buildings, Not Including Detached Accessory Dwelling Units As Defined In Section 15-1-6 Of -of This Title: 1. Any All detached accessory beifding or oomOncticn of ccrocacry Wild excQF� the Sprage7 structures may not exceed 1,200 square feet gross floor area, in aggregate per parcel except as permitted in Chapter 15 -4D -be -largo. in groan floor 6:,roa than oirc hs;ndreO (601,1; aqwrrc feet; 2. Except as permitted in Chapter 15-4E related to accessory dwelling units, ^taG;edetached accessory buildings are limited to one floor, but may include an attic, which may be used for storage purposes only, provided access to the attic is not from permanently fixed stairs (pull down type stairs are permitted), no plumbing is permitted, and electrical fixtures are limited to the minimum required by the California building code and California electrical code; 3. Unless permitted as an accessory dwelling unit, Dotaahed•-detached accessory buildings may not contain a kitchen or kitchen facilities, a bathtub or shower and may not be used for sleeping purposes or as an R occupancy, as defined by the California building code, except that they may contain a sink and a toilet; 4. Unless permitted as an accessory dwellina unit, Catrach-oA detached accessory buildings may not be rented or used as a separate dwelling unit; and 5. Before the City issues a building permit for a detached accessory structure, except a gamgc an accessory dwellinq unit, the Director will require that a covenant running with the land be recorded stating that the accessory structure may not be used as c dwoWnS unit er used in violation of this section." SECTION 9: ESMC Title 15, Chapter 4, Article B (Two -Family residential (R-2) Zone), Section 6, Subsection J is amended as follows: "J. Detached Accessory Buildings: 1. Argy All detached accessory b-uilding or ocmbinotion of 3-c'006sery b iWings: ouc^n the garage-, structures shall not be larger in Srcti, floor sr" than six 4und-ro,V. (CM) vqucrc fM exceed 1,200 square feet in aggregate per parcel. 2. Except as permitted in Chapter 15-4E related to accessory dwellinq units. Pet d detached accessory buildings shall be limited to one M floor, but may include an attic, which may be used for storage purposes only, provided access to the attic is not from permanently fixed stairs (pull down type stairs are permitted), 4 23 no plumbing is permitted, and electrical fixtures are limited to the minimum required by the URifeFM California Building Code (LJBC) and Natd enal California Electrical Code ,",�. 3. Unless permitted as an accessory dwelling unit. OetaGhed-detached accessory buildings shall not contain a kitchen or kitchen facilities, a bathtub or shower and shall not be used for sleeping purposes or as an "R" occupancy, as defined by the Uniform California Building Code {kJ9}, except that they may contain a sink and a toilet. 4. Unless permitted as an accessory dwelling unit, Oetac--fled-detached accessory buildings may not be rented or used as a separate dwelling unit; and 5. Prior to issuance of a building permit for a detached accessory structure, except a -garage an accessory dwelling unit, the Director ef-EGGnornis-a- _Developmont SeFViGes shall require the recording a covenant to run with the land, which states that the accessory structure shall not be used a +t-ar in violation of this section." SECTION 10: ESMC Title 15, Chapter 4, Article C (Multi -Family Residential (R-3) Zone), Section 5, Subsection G is amended as follows: "G. Placement Of -of Buildings And -and Structures: 1. The distance between buildings shall be governed by the Uniform California Building Code. 2. A detached accessory structure in the rear one-third 013 -)-of the lot may be located on the rear and one (44 interior side lot line, unless one (44 of the following conditions exists: a. Where the lot rears upon an alley and the vehicular entrance to the detached accessory structure is from the alley, such detached accessory structure shall be set back a distance measured from the opposite side of the alley that will provide a turning radius as follows: 90 degrees - 25 feet 75 degrees - 21 feet 60 degrees - 18 feet 45 degrees - 15 feet b. On the rear third of a reversed corner lot, a detached accessory structure may be built to the interior lot side line, but no building shall be erected closer than five feet (5'} -to the property line of any abutting lot to the rear. However, if an alley intervenes and the vehicular entrance to the detached accessory building is directly from the street side, a detached accessory building may be built to the rear lot line. 24 c. Notwithstanding the above, a detached accessory dwelling unit must be set back at least four feet from interior side and rear property lines. SECTION 11: ESMC Title 15, Chapter 4, Article C, Section 5, Subsection L is amended as follows, and Subsection M is added as follows.- L. ollows:L. Detached Accessory Buildings: 1. Unless permitted as an accessory dwelling unit. Data^;ed detached accessory buildings shall not contain a kitchen or kitchen facilities, a bathtub or shower and shall not be used for sleeping purposes. Each multi-familv lot is permitted no more than two detached accessory dwellinq units. 2. Detached accessory buildings, except detached accessory dwelling units, shall not be rented or used as a separate dwelling unit or as an "R" occupancy, as defined by the Uniform California Building Code (UBC), except that they may contain a sink and a toilet. 3. Prior to issuance of a building permit for a detached accessory structure, except a gafag-edetached accessory dwelling unit, the Director of and , e Gpmet-SePiLe-s shall require the recording of a covenant to run with the land, which states that the accessory structure shall not be used as a dwe&nj not or used -in violation of this subsection -L. M. Accessory dwelling units are permitted within residential structures as follows: 1. Multiple accessory dwelling units within the portions of existing multifamily dwelling structures that are not used as livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages, if each unit complies with state building standards for dwellings. 2. Up to 25 percent of existing units may have accessory dwellings within the space of the existing units. Lots with two or three units are permitted an accessory dwelling within the existing space of one unit. Lots developed with a single familv residence follow the guidelines for R-1." SECTION 12: ESMC Title 15, Chapter 4, Article E is amended as follows "ARTICLE E. ACCESSORY DWELLING UNITS 15-4E-1: PURPOSE; FINDINGS: This article is adopted pursuant to Government Code section 65852.2, ,as orrrnd,ad "y Ao-_\�mbly ai!I 2309 (off_ tivo January 1, 261-7)- for the purpose of implementing the City's regulation of accessory dwelling units. Rvrou&nt to Gover�en# -Godo "_-�ian Fy363.2(a), thio artiolo 6ccignnfec craw �_+ham r.+„ ,.,s -,arc a��t►C6�7n, ,�.g��orm:--Beca�o aoc�:�cer� 6 25 dwelling i snits tend to incrmv }ham ; of voh+nlo +rsffin within_th- city, Cn etrect pa*ing, noiC ,— "d othor adveroo impsek., this -article reitrioto tho la mticn of rscva^r:C traffic nc� only imnan+s exioting pLAlA:g InfrsatF61stere, sGh as sire^to and intcrs11,`ns, tc` degrades air quality, iRGFe rsessrnGisol &n� can intreducc p0utcnto into tho City's otorm dreins F Fthef + c incrc^sem' density of housing wM* +Gtr. City'o juriodiotie'n impants puWis-hoclth end J'f\)', end the publin welfarc by incrs: eine the demand for public se771ia+e �+ Government Code section 65852.2(e) requires the City ministerially approve certain accessory dwelling units in certain residential or mixed use zones within the Citv. On the other hand. Government Code section 65852.2(a)(1)(A). allows the designation of areas for accessory dwellinq units "based on the adequacy of water and sewer services and the impact of accessory dwellinq units on traffic flow and public safety." The Citv Council finds that the conditions that were cited in Ordinance No. 1381 that existed in the Citv at the time (r. e., increased traffic, relatively high density of housing in a small area, and intense on -street parking) continue to exist within the Citv. While the Citv Council recognizes that accessory dwelling units present a potential solution to the state's housinq crisis. the Council continues to believe that accessory dwellinq units increase the volume of vehicle traffic within the Citv, on - street parking, and noise, and can introduce pollutants into the City's storm drains. By adopting this chapter, the City Council desires to comply with state law while reserving its right to conduct studies evaluatina the adeauacv of water and sewer services. 15-4E-3-2: GENERAL REQUIREMENTS: A. Befi ition Of "ET(g": ccr pwrpcnes of this idc end e&ininn an allowable ✓aaoo or otruaturc th, cin ke venvortcw tc cn ccoo%&t , dwelling unit, the -term rpexie ing" means d wreilingo or otruoturoo that. 1.La�4ully_e)(iotve cin tho prool &,a cf anwery 1, 2017, or woro tho o!�of of a buik ng --permit duly ic:swwcd aefGrs an"ury 1, 2Q17; and 72. Gabo msdv--safely habitable a dor 13oal bundles-Gdsvi, L� the determin.�firnn ^fo ", - he h il�inr official. -A. Locations: Accessory dwelling units are permitted by right throughout the 1 Zcnv end in the R 2 Zana on lots th0mcs ftn fc„"+, nC (1,Cln�, e feet anv zone where residential uses are permitted. Accessory dwelling units may be: 1) contained within the existing or proposed space of a single-family residence armor attached to a single-family residence, 2) within the existingspace of an existing accessory structure; suoh s\j c poet heuse, „lie er Amilar s+r„^+, ern with d e mef (kut not inols,A;nC 3eregcs), or 3) detached from the single - 7 26 family residence, subject to the requirements and development standards in this Code and State law. C. Ros!-P4eperty:-Tho roal property prcpo-se4-fwAha _-x)oc3rary dwe4in� not conoist of moro than ono (1) lot; 9-13.-Erristing Singlc Fern4y4B)wel- P@--.Th4_-lot mu;f so�ain an cyi-s�g-,4ig e f,� dwelling. An aGGe&s^r, d..,el4^y H*-..may-,cnly bo oon-stuot-_\1 in o igen a-sinrlc family-dwe.Wf p Coniunction with Sinqle-Familv or Multi -Family Dwellina: An accessory dwelling unit may only be constructed in coniunction with either an existinq or proposed single-familv dwellinq or an existinq multi -family dwellinq. C. Certificates of occupancv: The Citv shall not issue a certificate of occupancv for an accessory dwelling unit before a certificate of occupancv is issued for the primary dwelling or dwellings. €—D. Separate Sale Prohibited: Accessory dwelling units may not be sold separately from a primary dwelling. 1=E. Owner Occupancy Required: For accessory dwelling units for which a building permit is applied for after January 1. 2025, T- e ---the primary dweIH-n, i or the accessory dwelling unit must be the primary residence of the property owner of the lot. If none of the units on the lot are occupied by the owner as the owner's primary residence, the accessory dwelling unit will automatically be deemed a non - habitable space which may not be used as a dwelling and may not be rented. G ---F. Covenant Required: Before the City issues a bu+4ing--per-n+t certificate of occupancv for an accessory dwelling unit, the property owner must record with the County Recorder a covenant running with the land stating that 1) the accessory dwelling unit c-annc#mav not be used in violation of this chapter and 2) anv rental of the accessory dwellinq unit be for a term of 30 days or longer. The covenant must be approved by the Director Gf-P-lanP4ng--af44-guifd4Fq-Safetyeft-and approved as to form by the City Attorney. H -G. Release Of Covenant: In the event a covenant was previously recorded for a permitted accessory structure restricting the structure as non -habitable pursuant to subsection 15 -4A -6H of this chapter, before the City issues a building permit for an accessory dwelling unit, the property owner must record a release of such covenant with the County Recorder, in a form approved by the Director of Planning and Building Safety and the City Attorney. H. The Citv may not condition its approval of the permit application by requirinq the applicant correct a nonconforminq zoning condition, as that term is defined in Government Code � 65852.2. I_---Garagc Convo d= Ga- ver+, roryi iirc,rl i inrlyrfh, �ri� true do not tltutc "cn evicting gr r+ecoe c.ru ", co sLti 4G]e-ar�-a-Ry f I �.1CTOiTi"7�LT[JTiG'.... r, 14 27 oonv3�mion of cuoh a gcr%,, or ocrpvrt tc on aec—: 2. One detached or attached to an accessory structure accessory dwellina unit that may be combined with one junior accessory dwelling unit per lot with a proposed, or existinq single-familv dwellinq. 3. Multiple accessory dwellinq units within the portions of existing multifamily dwelling structures that are not used as livable space, provided each unit complies with state building standards for dwellinqs. 4. One accessory dwellina unit or 25 percent of the existinq multifamily dwelling_ units, whichever is qreater. within an existina multifamily dwelling. 5. Two detached accessory dwellinq units per lot with an existing multifamily. dwellinq. E. Architectural Design: Each unit, whether attached or detached, must be architecturally compatible with the primary dwelling. F. Parking: 1. No parking spaces are required for accessory dwelling units within one-half mile of a transit stop. 2. When a oarage, carport. or covered parking structure is demolished in conjunction with the construction of an accessory dwellinq unit, or converted to an accessory dwellina unit, replacement parking for the lost spaces are not required. G. Separate Entrance: If the accessory dwelling unit is attached to or within the primary dwelling, it must have independent exterior access from the proposed or existinq primary dwelling. Such independent exterior access may not be an entrance facing the front yard. An independent and separate entrance to the accessory dwelling unit must be located on the side or at the rear of the primary dwelling. H. Compliance: The accessory dwelling unit must comply with applicable Building, Health and Fire Codes except where explicitly exempted by Government Code section 65852.2. Fire sprinklers for accessory dwelling units are required only when they are required for the primary dwelling on the lot. 15-4E-4: APPLICATION PROCESS; FEES: A. Pvr3wcnt tv Gevernnwnt Cc�o socttion M52.2, &,Any application for a building permit to create an accessory dwelling unit on a lot with an existinq single-family dwellinq or multifamily dwellinq units that oonformo tc thio srtiolo and io othepwise ee+lete shall be ministerially approved within eno hs!ndrpd twonty (120) 60 days of the Citv's receipt of a completed application. Anv permit application for an accessory dwellinq unit that is submitted with a permit application to create a. sinqle-familv dwellinq shall be considered ministerially but is not subiect to the 60- 10 ME day requirement to allow the Citv time to act on the permit application to create the new single-familv dwelling, if necessary. B. The-ap ivant m6t®t pray any sppli"blo fovo. For an accessory dwelling unit of 750 square feet or more, the applicant must pav, inoludiH-4444Gt limillod to development impact fees imposed pursuant to chapter 27A of this title, in an amount set by City Council resolution, provided that such development impact fee is proportional in relation to the square footaqe of the primary dwellinq unit. 15-4E-5: UTILITY CONNECTIONS: A. An accessory dwellina unit shall not be considered a new residential use for Purposes of calculating connection fees or capacity charges for utilities. unless the accessory dwellinq unit is constructed simultaneously with a new sinale-familv dwellina. B. The Citv may require a new or separate utility connection directly between the accessory dwellinq unit and the utility, and may require the pavment of a connection fee or capacity charge for anv accessory dwellina unit. unless the accessory dwellina unit is an accessory dwellinq unit or iunior accessory dwellinq unit within the proposed space of a single-family dwellina or existina space of a single-family dwellinq or accessory structure, in which event no new or separate utilitv connection may be required." SECTION 13: ESMC Title 15, Chapter 4 is amended by adding Article F to read as follows: "ARTICLE F. JUNIOR ACCESSORY DWELLING UNITS 15-4F-1: PURPOSE: This article is adopted pursuant to Government Code section 65852.22, for the purpose of implementinq the Citv's reputation of iunior accessory dwellina units. 15-4F-2: GENERAL REQUIREMENTS: A. Permit Required: A permit must be obtained to create a iunior accessory dwellina unit. B. Densitv: One junior accessory dwellinq unit per residential lot zoned for single- family residences with a single-familv residence built, or proposed to be built, on the lot. C. Owner Occupancv Required: The owner must reside in the sinqle-family residence in which the iunior accessory dwellinq unit will be permitted. The owner may reside in either the remaininq portion of the structure or the newly created 11 30 junior accessory dwelling unit. Owner—occupancv shall not be required if the owner is another governmental agency, land trust, or housinq organization. D. Recordation of a deed restriction required: The applicant must record a deed restriction which includes both of the following: 1. A prohibition on the sale of the junior accessory dwelling unit separate from the sale of the single-family residence, including a statement that the deed restriction may be enforced against future purchasers. 2. A restriction on the size and attributes of the iunior accessory dwellina unit that conforms with this section. 15-4F-3: DEVELOPMENT STANDARDS: A. A permitted iunior accessory dwellinq unit must be constructed within the walls of the proposed or existinq sinqle-family residence. B. Separate Entrance Required: A iunior accessory dwellina must include a separate entrance from the main entrance to the proposed or existina single-family residence. C. Efficiency Kitchen Required: A junior accessory dwellina unit must include an efficiencv kitchen, which shall include all of the following: 1. A cooking facility with appliances. 2. A food preparation counter and storage cabinets that are of reasonable size in relation to the size of the junior accessory dwelling unit. D. Parkinq: No additional parking is required for a junior accessory dwellina unit. 15-417-4: APPLICATION PROCESS; FEES: A. Any application for a building permit to create a iunior accessory dwellina unit on a lot with an existina single-famiiv shall be ministerially approved within 60 days of the City's receipt of a completed application. Any permit application for a junior accessary dwelling unit that is submitted with a permit application to create a new single-familv dwelling shall be considered ministeriallv but is not subject to the 60- dav requirement to allow the City time to act on the permit application to create the new sinale-family dwellina, if necessarv. B. The applicant must pay anv applicable fees. 15-4F-5: UTILITY CONNECTIONS: 12 31 A iunior accessory dwellinq unit shall not be considered a new residential use for purposes of calculating connection fees or capacity charges for utilities." SECTION 14: CONSTRUCTION. This ordinance must be broadly construed in order to achieve the purposes stated in this ordinance. It is the City Council's intent that the provisions of this ordinance be interpreted or implemented by the City and others in a manner that facilitates the purposes set forth in this ordinance. SECTION 15: ENFORCEABILITY. Repeal of any provision of the EI Segundo Municipal Code does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before this ordinance's effective date. Any such repealed part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this ordinance. SECTION 16: VALIDITY OF PREVIOUS CODE SECTIONS. If this entire ordinance or its application is deemed invalid by a court of competent jurisdiction, any repeal or amendment of the ESMC or other city ordinance by this ordinance will be rendered void and cause such previous ESMC provision or other ordinance to remain in full force and effect for all purposes. SECTION 17: SEVERABILITY. If any part of this ordinance or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this ordinance are severable. SECTION 18: The City Clerk is directed to certify the passage and adoption of this ordinance; cause it to be entered into the City of EI Segundo's book of original ordinances; make a note of the passage and adoption in the records of this meeting; and, within 15 days after the passage and adoption of this ordinance, cause it to be published or posted in accordance with California law. SECTION 19: The City Clerk is further directed to submit a copy of this ordinance to the Department of Housing and Community Development within 60 days after adoption. 13 32 SECTION 20: This Ordinance will become effective on the thirty-first day following its passage and adoption. PASSED AND ADOPTED this 4th day of February, 2020. Drew Boyles, Mayor ATTEST: STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO 1 I, Tracy Weaver, City Clerk of the City of EI Segundo, California, do hereby certify that the whole number of members of the City Council of said City is five; that the foregoing Ordinance No. was duly introduced by said City Council at a regular meeting held on the day of , 2020, and was duly passed and adopted by said City Council, approved and signed by the Mayor, and attested to by the City Clerk, all at a regular meeting of said Council held on the day of 2020, and the same was so passed and adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: Tracy Weaver, City Clerk APPROVED AS TO FORM.- Mark ORM: Mark D. Hensley, City Attorney 14 33 EL SEGUNDO CITY COUNCIL MEETING DATE: January 21, 2020 AGENDA STATEMENT AGENDA HEADING: Public Hearing AGENDA DESCRIPTION: Introduction of proposed ESMC text amendments related to accessory dwelling units in all residential zones. This action is statutorily exempt from further environmental review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and CEQA Guidelines (14 California Code of Regulations §§ 15000, et seq.), because it involves the adoption of an ordinance regarding accessory dwelling units in a single-family or multifamily residential zone to implement the provisions of Sections 65852.1 and 65852.2 of the Government Code as set forth in Section 21080.17 of the Public Resources Code, pursuant to CEQA Guidelines § 15282(h) RECOMMENDED COUNCIL ACTION: 1. Conduct a public hearing; 2. Take testimony and other evidence as presented; 3. Introduce by title only and waive further reading of an Ordinance with modifications to text of ESMC related to Accessory Dwelling Units in residential zones; and/or, 4. Schedule second reading and adoption of the Ordinance for February 4, 2020; ATTACHED SUPPORTING DOCUMENTS: 1. Proposed Ordinance No. 2. Planning Commission Resolution No. 2881 (without attachments) 3. Planning Commission Staff Report, dated December 12, 2019 (without attachments) 4. AB 881 FISCAL IMPACT: None. Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A STRATEGIC PLAN: None (State mandate) PREPARED BY: Gregg McClain, Planning Manager REVIEWED BY: Sam Lee, Planning and Building Safety Director APPROVED BY: Scott Mitnick, City Manager BACKGROUND / ANALYSIS Last October the Governor signed AB 881 which implemented a number of significant changes to the Accessory Dwelling Unit (ADU) statutes. The new ADU law, as put forth in AB 881, made the following changes to state law: 1. ADUs are now expressly permitted in converted garages; 2. ADUs may not trigger replacement parking when the garage is converted; 34 3. City cannot require correction of nonconformities, and an ADU can be built in the same place and to the same square footage as the building it replaces; 4. The City must process ADU applications within 60 days instead of 120 (except when the primary residence is being built simultaneously); 5. Until January 1, 2025, the City may not require property owners to reside on the property; after January 1, 2025, the City can require new applications for ADUs to require property owners reside on the property; 6. If a property has a single family residence and a proposed or existing detached ADU, a Junior ADU is also permitted. Junior ADUs are limited to 800 square feet and must be entirely within the existing house; 7. ADUs are now permitted in multi -family residential zones, as described in more detail below; 8. ADUs may not be rented for less than 30 days; and 9. New limitations on utility connections and fees are imposed. There are many additional details in AB 881 that are reflected in the attached draft ordinance. Cities must submit their ADU ordinance to the Department of Housing and Community Development (HCD) for review. HCD staff must confirm it is compliant with state laws or HCD will give cities 30 days to respond to the findings. Failure to make HCD's recommended changes may lead to the ordinance being deemed void and the matter could be referred to the Attorney General's office. Meanwhile, until a compliant ordinance is adopted the City is legally required to state ADU requirements. MULTI -FAMILY ADUs One of the most significant new features of ADU law is that multi -family structures may have ADUs now. There are three specific ways this may happen: 1. Each multi -family structure may convert spaces currently not used as livable space, such as storage rooms, to ADUs; and up to 25 percent of the units in a multi -family building may have an ADU within the existing space of the unit; or 2. Up to two detached ADUs are permitted on multi -family lots. . DETACHED STRUCTURE AREA LIMIT Given that detached structures may be converted to ADUs, Staff saw a potential for very crowded lots becoming increasingly the norm. One way to help control this is to limit the size of all detached structures in aggregate. Currently houses are limited to 0.6 times the lot size, and detached accessory structures are limited to 600 square feet each, detached ADUs are capped at 1,200 square feet, and two -car garages are typically 400-500 square feet. In the draft language staff is proposing that the limit of detached accessory buildings be capped at 1,200 square feet total. The expected outcome of including this is that most detached ADUs will come in at about 700-800 square feet and most garages will remain. In cases where larger ADUs are desired, the 2 35 garage will be converted as well, but this aggregate maximum at least avoids the situation where there can be a 1,200 square foot ADU and a 600 square foot detached office on the same lot. The state is very clear that existing structures may be converted to ADUs, so the 1,200 square foot limitation would not apply to conversions when the aggregate total is already over 1,200 square feet, but the ADU itself is capped at 1,200 in that instance. All of the provisions of the draft ordinance would not apply to such a situation that makes it impossible to construct an ADU of at least 850 square feet on the property. Although the new state laws will certainly make ADU permits easier to obtain, there are certain building code standards that still apply to conversions as well as to new structures. It is likely that conversions may be seen as onerous compared to new construction, so the expected outcome will be that most ADUs will be in new structures that meet all building codes requirements that apply. AFFORDABILITY Staff is studying the possibility to make ADUs count as affordable units, either through incentives or by mandate. No such restrictions or incentives are proposed at this time. The hope is that ADUs will contribute significantly toward the City's affordable unit count for both Regional Housing Needs Assessment (RHNA) and the 2021-2028 Housing Element. PLANNING COMMISSION REVIEW On December 12, 2019, the Planning Commission considered the proposed ordinance during a public hearing. The Planning Commission adopted the attached resolution recommending the City Council adopt the proposed ordinance. The Planning Commission also recommended that the City Council direct staff to conduct studies analyzing the potential water or sewer impacts imposed by ADUs within residential areas throughout the City. The Commission's recommendation was based on the state law regarding ADUs which allows the designation of areas for accessory dwelling units "based on the adequacy of water and sewer services and the impact of accessory dwelling units on traffic flow and public safety." (Government Code section 65852.2(a)(1)(A).) The state law also provides, however, that cities must ministerially approve certain ADUs, as described in this staff report and the attached, proposed ordinance, notwithstanding the ability of cities to designate areas for ADUs. Thus, the designation of areas language appears to only apply to other types of ADUs that go above and beyond those specifically required to be approved per Government Code section 65852.2(e). Nonetheless, the proposed ordinance references prior findings made of the potential impacts of ADUs in residential areas. TYPE OF ACTION (LEGISLATIVE. OUASI-JUDICIAL; OR ADVISORY) Legislative: The recommended action is a proposed ordinance. In considering such action, the City Council acts in its legislative capacity, and must find that the proposed Ordinance is consistent with the General Plan and the Zoning Code (ESMC Title 15). Staff believes that the City Council can make such findings, as described in the proposed ordinance. ENVIRONMENTAL DETERMINATION 3 36 This action is statutorily exempt from further environmental review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and CEQA Guidelines (14 California Code of Regulations §§ 15000, et seq.), because it involves the adoption of an ordinance regarding accessory dwelling units in a single-family or multifamily residential zone to implement the provisions of Sections 65852.1 and 65852.2 of the Government Code as set forth in Section 21080.17 of the Public Resources Code, pursuant to CEQA Guidelines § 15282(h). 4 37 EL SEGUNDO CITY COUNCIL MEETING DATE: February 4, 2020 AGENDA STATEMENT AGENDA HEADING: Continued Public Hearing AGENDA DESCRIPTION: Zone Text Amendment creating a pilot program to allow and regulate Short -Term Rentals in the City's residential zoning districts through a Short-term Rental Permit process. ENVIRONMENTAL DETERMINATION: The proposed project is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Class 6 (Information Collection) (14 Cal. Code Regs. § 15306), because it involves creating a regulatory process for a use in the Residential zoning districts for a limited time. RECOMMENDED COUNCIL ACTION: 1. Continue a public hearing; 2. Take testimony and other evidence as presented; 3. Introduce by title only and waive further reading of an Ordinance allowing short-term rentals in the City's Residential Zones through a Short -Term Rental Permit process; and, 4. Schedule second reading and adoption of the Ordinance for February 18, 2020. ATTACHED SUPPORTING DOCUMENTS: A. Proposed Ordinance No. B. City Council Staff Report, dated November 19, 2019 (without attachments) FISCAL IMPACT: Potential revenue of $37,000 from permits and business licenses; and $125,000 from Transient Occupancy Taxes (TOT), which could offset a portion of Staff time involved with processing and monitoring applications. Amount Budgeted: None Additional Appropriation: $40,000 Account Number(s): 001-300-0000-3301 (Business License) 001-300-0000-3203 (Transient Occupancy Tax) tbd (Short-term Rental Permit) STRATEGIC PLAN COMPLIANCE Goal: Enhance customer service and engagement Objective: City services are convenient, efficient and user-friendly for all residents and businesses. PREPARED BY: Eduardo Schonborn, AICP, Principal Planne REVIEWED BY: Gregg McClain, Planning Manager -/ Sam Lee, Planning and Building afety Directo Joseph Lilio, Finance Director Dan Kim, Lieutenant?( APPROVED BY: Scott Mitnick. Citv Manner 'P,U �r Srtrt 1 RN S] BACKGROUND City Council considered this item on November 19, 2019. During the meeting, the public and Council raised several issues and concerns regarding language and regulations contained in the proposed Ordinance. City Council continued the item, directing Staff to amend the proposed Ordinance by prohibiting STRs in the R-3 Zone and address certain operational conditions, and identify expenditures and potential impacts upon current staffing. DISCUSSION Limiting STRs to R-1 and R-2 Zones. Special Consideration in R-3 Zone After the November 19, 2019, City Council, Staff received a comment (attached) from Mr. and Mrs. Bellante. The Bellantes own a property in the R-3 (Multi -Family Residential) zone that is improved with a duplex. They expressed concern with Council's direction to prohibit STRs in the R-3 zone, especially when there are a number of R-3 properties that are not developed with multi- family structures. Thus, they request City Council consider allowing STRs in R-3 only if the property is developed with a single-family residence or duplex. Staff believes this request has merit since it would allow STRs on R-3 zoned properties only if said properties are improved with a single-family residence or a duplex, similar to existing improvements in R-1 and R-2 properties. Should Council agree, Staff has included language in the proposed ordinance that allows STRs on R-3 zoned properties provided it is developed with a single-family residence or duplex. However, if Council reaffirms its position to not allow STRs in the R-3 zone, then said language can be removed from the Ordinance. Operational Conditions During the meeting, the public and Council expressed concerns with the proposed conditions regarding signage, and limiting the number of bookings for any given night to one. The proposed conditions prohibit signage on the property. This is consistent with regulations imposed on home- based businesses, and Staff believes that such a condition should be included so that advertising signage does not detract from the residential character of neighborhoods. Regarding the limitation on the number of bookings per night, Staff initially included said restriction to avoid multiple groups staying at a STR at the same time, resulting in a potential over -crowded situation. However, the Council believed this restriction was not warranted, and directed Staff to remove the condition. As such, the restriction has been removed from the proposed Ordinance, which will allow TOT collection for each booking based upon the number of nights stayed. Prohibiting ADUs as STRs With State legislation prohibiting the use of certain ADUs as STRs after January 1, 2020, Staff believes it is simpler and consistent to prohibit the use of any ADU as an STR regardless of when the ADU was permitted or constructed. As such, the draft Ordinance has been amended to include language expressly prohibiting the use of ADUs as STRs in the operational conditions and in the permitted uses section in each residential zoning. Further, when an STR permit is approved, it would expressly be issued for the main residence and not the ADU. 2 39 Hosting Platform Responsibilities The City Attorney's Office has also updated the Hosting Platform Responsibilities of the proposed Ordinance to ensure consistency with the most recent case laws regarding disclosure of information. The update also requires that platforms remove STR listings at the request of the City, which could occur when a STR listing is for a property that does not have a valid STR permit. Staffing. lmnlementation and Potential Use of a STR Monitorinc-1 Com-vanv City Council also raised concern with the demands on staff to identify STRs in the City and coordinate with hosts to obtain STR permits. It's important to note that the Planning and Building Safety Department has one code enforcement officer assigned to deal with code complaints throughout the city, responding to complaints of illegal construction, property maintenance, etc. Whether City Council expressly prohibits STRs or allows them with a permit, STRs must be identified. The difficulty lies in that there are dozens of sites where STRs can be listed, and most illegal listings are posted during non -work hours and weekends when city hall is not open. Since the city's only code enforcement officer could not constantly monitor the web to identify STR listings across multiple sites, nor does the city have the technology to do so, it would be prudent to consider contracting with a firm to assist the city. As previously indicated, Planning Commission recommended that City Council consider utilizing a private company that can assist the City with scanning the internet to identify STR advertisements across the multiple online platforms that are available for advertising STRs. Further, such companies have the capacity to identify STRs operating illegally in local neighborhoods more efficiently and comprehensively, thereby minimizing the burden on staff to identify and monitor STRs. Staff reached out to Host Compliance, who currently provide services to Hermosa Beach, for information on the services they could render to El Segundo. Host Compliance's menu options include the following: 1. Mobile enabled permitting and registration: Host Compliance would assist in developing online registration and permitting. 2. Address identification: Host Compliance would provide the city with weekly reports on STRs in the city, complete address information and screenshots of all identifiable STRs. 3. Compliance monitoring: Host Compliance would prepare and mail notices to non- compliant STR operators, directing them to obtain the necessary licenses and permits from the city. 4. Rental activity monitoring and tax collection support: Host Compliance would monitor STR listings for signs of rental activity. This would assist with tax audits by approximating the TOT based on the nightly rate and the number of nights the STRs were rented. 5. 24/7 dedicated hotline: Host Compliance would also provide a 24/7 staffed telephone hotline for neighbors to report non -emergency problems. According to Host Compliance, services 1 through 5 above could be accomplished for approximately $30,000 for the duration of pilot period. An additional $10,000 is estimated for staff investigation during off hours, for a combined total of $40,000. Staff believes this would pay for itself through the collection of business license and Short-term Rental Permit fees, and by the TOT 3 40 collected on STRs. Since Host Compliance has the capacity to identify STRs more efficiently and comprehensively, the burden on staff to identify and monitor STRs is minimal. In addition to monitoring, Host Compliance would gather evidence of listings that do not have an STR permit and send letters to those property owners directing them to obtain a permit. Lastly, a dedicated hotline helps with tracking and monitoring problems that arise on weekends and evenings when code enforcement and city staff are not at city hall. This also serves as a triage where the caller would be directed to the Police Department if it is a problem that necessitates police service or intervention, such as disturbing the peace or loud and unruly gathering. Notwithstanding, the public would never be discouraged from contacting the City's Police Department directly. Next Stens If City Council approves the amendment, Staff will finalize an application form and commence accepting applications as early as April 1, 2020 through June 30, 2021. During this time, Staff would ascertain whether STRs may be appropriate over the long term in residential zones before committing to making them permanent. Staff would monitor the activity and report its findings back to Planning Commission in the Spring 2021, along with a recommendation as to how to proceed. Criteria that would be monitored and reported back may include number of STR permits issued; number of complaints received, along with types of complaints; parking issues; and, number of nights. Notwithstanding, the proposed Ordinance has been prepared such that if no action is taken next year, then the pilot program ends, all permits expire, and no new permits or renewals would be issued for subsequent years. CONCLUSION Planning Staff recommends that City Council introduce an Ordinance amending Titles 4 and 15 of the El Segundo Municipal Code; and schedule second reading and adoption of the Ordinance for February 18, 2020. 4 41 Schonborn, Eduardo From: Shauna Fanara <shaunafanara@yahoo.com> Sent: Thursday, November 21, 2019 10:07 AM To: Schonborn, Eduardo Subject: Short Term Rentals November 20, 2019 To: Mr. Schonborn From: Bellante Family RE: Short Term Rental Proposal It was a pleasure to meet you yesterday. Thank you for taking a moment to listen to our concerns about the amendment proposed by council member Nichol. Below is a letter summarizing what we discussed. Hopefully, the city planners can recommend a change to remedy the problem. Last night at the city council meeting, a Short Term Rental (STR) proposal was discussed. This proposal allows the use of one dwelling to be used as an STR in all residential zones. We think that this is a fair and balanced proposal for all folks in the city. During the course of the meeting, Council Member S. Nicol requested a change that included no STRs be allowed in R3 zones. This is not a logical or fair solution. There are several R3 zones that have single family residences and/or duplexes (mine, included) in the zoned area. For instance, the 300 block of Center, is all zoned R3 and yet there are 4 single family residences, 2 duplexes, 2 triplexes and one 4 unit apartment building. This is not a unique situation limited to this block only. There are numerous other examples of this situation throughout the residential areas of EI Segundo. To exclude these single family resident and duplex homeowners from having an STR would be tragic. Folks who own and live in a single family residence or duplex must not be denied the equal opportunity of an STR because of the zone their home happens to be categorized in. One possible solution is to grant exceptions to homeowners of single family residences and duplexes. But this will take time and manpower that the city may not have. However, the Planning Commission's original idea of issuing one permit per parcel regardless of zone is a fantastic idea. It is fair and equatable to all owners, as well as the city, because it addresses the concerns of party houses, trash and parking. Language in the current proposal can easily be changed to allow already existing homes and duplexes in R3 zones to have the same opportunity to host STR's as those zoned in R1 and R2. This approach eliminates the exclusion that exists in the council member Nicol's recommendation. I hope you agree that the amendment proposed at the council meeting is not a reasonable or fair solution and needs to be readdressed. Please allow single family homes and duplex owners in R3 zones to have the same opportunity to host an STR as other like residents in R1 and R2 zones. Feel free to reach out to us to further discuss this matter. We would welcome the opportunity to meet for a cup of coffee to explore this matter further before it gets voted on in the next council meeting. Thank you for your time and consideration, Ben & Shauna Bellante (310) 906-5125 shaunafanara@yahoo.com :A Schonborn, Eduardo From: Carrie Becks <carriebecks@gmail.com> Sent: Tuesday, November 19, 2019 10:37 AM To: Boyles,Drew (Mayor); Pirsztuk, Carol (Mayor pro tem); Brann, Don (Council Member); Nicol, Scot (Council Member); Pimentel, Chris (Council member); Schonborn, Eduardo Subject: This is how people are traveling now. Please read this Hello Council members, I plan on seeing you all tonight. El Segundo is marketing that we are "Business friendly" but not small business friendly? Please don't limit how many rooms or apartments we can rent. That is not the answer. I have several airbnb's and have run them as a bed and breakfast for over 9 years and the property is a duplex. Restricting to just one will severally hurt my income and I rely on this income for retirement. I'm a 60 year old women and my mortgage is 3500 per month and I work part-time. I should be allowed to rent to others since I have worked hard to buy this property and did it alone. I have rented to several fire victims at a huge discount to help them. What have the hotels done? Airbnb has a program with the Americian Cancer society to offer free and discounted rooms. Do hotels offer that? I've housed many sick folks getting care. • I have had over 7,000 guests and never had a problem. None of you have ever heard of me or the other 99% of responsible owners or our neighbors, just the party house • There are not enough airbnb's or affordable hotels in the area to serve the community. I rent to grandparents, children, workers at chevron, airport, medical students and fire victims and patients seeking medical care • Visitors contribute to the success of our downtown restaurants and shops • Most use Ubers so they don't create parking issues • You are penalizing the 70 responsible hosts for one bad host • The El Segundo police should have stopped the party house years ago • Airbnb seems to be a bad word, but it's the only company to use because of it's customer service, vetting, reviews, insurance, trust and safety departments. • Limiting the airbnb's is not the answer, we don't have enough to serve the community now. • Making us get a license and paying for it gives the city control and revenue and will control how many new STR's come up • Making us pay a tax for visitors is right and can give the city revenue as so many other cities have done • Having parking for guests is reasonable. • Getting experienced hosts to help the city for free with advice and community groups is the answer. I have offered many time to help answer questions but the council is still ill informed. We use it, live it and understand the good we offer the community. • Getting an 800 numbers for issues is the answer 43 You have hired people that have no experience with short term rentals except to find the bad in them. This is how people travel now. This is how the world has evolved to the better. It's created jobs and opportunities for families to be together. We are not the city that once had signs in the 50's that said "Some people are not welcome" We should welcome visitors and welcome change and not be fearful. Uber is in our city, we don't limit them? It's how people travel now. We are a city that is business friendly, so lets not be hypocrites that don't welcome small business's run by the citizens that own their homes. GET RID OF THE PARTY HOUSE. THAT IS THE PROBLEM AND NONE OF THE CURRENT HOSTS SUPPORT HER OR THAT MODEL. Respectfully, Carrie Carrie Becks 310-678-7601 ca rri ebec ks0a ma i I . com DRAFT ORDINANCE NO. AN ORDINANCE OF THE CITY OF EL SEGUNDO AMENDING TITLE 4 (BUSINSESS REGULATIONSAND LICENSING) OF THE EL SEGUNDO MUNICIPAL CODE BY ADDING A NEW CHAPTER ESTABLISHING REGULATIONS FOR SHORT TERM RENTALS, AND AMENDING TITLE 15 (ZONING REGULATIONS) OF THE EL SEGUNDO MUNICIPAL CODE ALLOWING THE OPERATION OF SHORT TERM RENTALS IN THE CITY'S RESIDENTIAL ZONES THROUGH A SHORT-TERM RENTAL UNIT PERMIT PROCESS. The City Council of the City of EI Segundo does ordain as follows: SECTION I : The City Council finds and declares as follows: A. Due to the City's close proximity to the Los Angeles International airport, its close proximity to beaches and other Southern California attractions and tourist destinations, and it being home to a significant number of Fortune 500 companies, the City of EI Segundo has become a popular location for alternative short-term lodging; B. The rental of private homes on a short-term basis to visitors provides a community benefit by expanding the number and type of lodging facilities available and assists owners of homes by providing revenue which may be used for maintenance and upgrades to these units; C. The rental of private homes by owners for temporary occupancy has also been identified as a community concern, due to the potential for increased traffic, noise, and density in single family residential neighborhoods if these uses are not properly regulated; D. Problems with short-term lodgings are particularly acute in the Residential zones where the peace, safety and general welfare of the long term residents are threatened; E. An effective way to minimize the problems associated with short-term units is to allow short-term rentals through a permit process with restrictions and operational regulations; F. To allow the City to more accurately gauge the relative advantages and disadvantages of allowing short-term rentals in Residential zones without committing to their permanence, this Ordinance establishes a limited Pilot program that will automatically sunset on June 30, 2021; G. On June 27, 2019, the EI Segundo Planning Commission held a noticed public hearing to receive public testimony and other evidence regarding the proposed Page 1 45 ordinance, including information provided by city staff; and, adopted Resolution No. 2852 recommending that the City Council approve the proposed amendments; H. On November 19, 2019, the EI Segundo City Council held a public hearing and considered the information provided by City staff and public testimony regarding this Ordinance; On November 19, 2019, City Council directed Staff to amend the proposed Ordinance and return with additional information for consideration by City Council; J. On February 4, 2020, City Council continued its discussion on the proposed Ordinance and considered the information provided by City staff; and, K. This Ordinance and its findings are made based upon the entire administrative record including testimony and evidence presented to City Council at its November 19, 2019 and February 4, 2020 public hearings and the staff reports submitted by the Planning and Building Safety Department. SECTION 2: Environmental Assessment. Pursuant to the provisions of the California Environmental Quality Act, Public Resources Code Sections 21000 et. seq. ("CEQA"), the State's CEQA Guidelines, California Code of Regulation, Title 14, Section 15000 et. seq., Staff found no evidence that EA -1180 and ZTA 17-01 would have a significant effect on the environment and, therefore, the proposed Zone Text Amendment has been found to be categorically exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to 14 California Code of Regulations § 15308 (Class 8) since the amendment would "assure the maintenance, restoration, enhancement, or protection of the environment where the regulatory process involves procedures for the protection of the environment", and the Amendment consists of establishing regulations and procedures for renting existing residential units on a short term basis. The proposed Ordinance is an action that does not have the potential to cause significant effects on the environment, but rather will help reduce the impact of short term rentals in the City's Residential zones. Consequently, no further environmental review is required. SECTION 3: General Plan Findings. Considering all of its aspects, the ESMC amendments proposed by the Ordinance will further the goals, objectives and policies of the General Plan and not obstruct their attainment. More specifically: A. The amendment conforms to the Land Use Element Goals, Objectives and Policies. Specifically, the amendment is consistent with Goal LU 1, Objective LU 1- 1, Goal LU3, in that the amendment ensures the preservation, protection and extension of existing residential uses; and promotes the health, safety, and wellbeing of the people of EI Segundo by adopting standards for the proper balance, relationship, and distribution of the residential land uses at all times in accordance with applicable law. B. The proposed text amendment to the Permitted Uses section in each of the City's Residential Zones conforms to the General Plan. The proposed changes do not Page 2 modify or increase the maximum density of dwelling units per acre currently allowed in the Residential Land Use designation. As a result, the proposed Zone Text Amendment conforms to the Land Use Element of the General Plan. C. The text amendment complies with Objective LU 1-5.6 in that the changes to the existing language will allow short-term rentals through a short-term rental unit permit requirement. D. The text amendment is consistent with the Residential Land Use designation in that the proposed changes do not modify or increase the maximum density of dwelling units per acre currently allowed by the Residential zoning designations. SECTION 4: Zone Text Amendment Findings. In accordance with ESMC § 15-26-4 the City Council finds as follows: A. The proposed project is consistent with the purpose of the ESMC, which is to serve the public health, safety, and general welfare and to provide the economic and social advantages resulting from an orderly planned use of land resources. B. The proposed project is necessary to minimize the problems associated with short- term units by requiring a short-term rental unit permit, with restrictions and operational regulations. Further, the ordinance and all short-term rental permits will automatically sunset on June 30, 2021, after which short-term rentals will no longer be a permitted use. C. The proposed project is necessary to minimize the likelihood that this activity goes underground, at which point the city would not have an account of the number of short-term rentals, their locations, or a funding mechanism to offset any increase in demand for City services resulting from the short-term rental unit. SECTION 5: The following definitions are added to section 15-1-6 of the EI Segundo Municipal Code to read as follows: "SHORT-TERM RENTAL: The rental of any structure or any portion of any structure for occupancy, dwelling, lodging or sleeping purposes for a period of 30 consecutive calendar days or less." "SHORT-TERM RENTAL UNIT: A dwelling unit, or portion thereof, that is made available for short-term rental. A "short-term rental unit" has historically been, and continues to be, included in the definition of "hotel" for purposes of Title 3, Chapter 4 of this Code." SECTION 6: Section 15-4A-2 ("Permitted Uses") of the EI Segundo Municipal Code is amended to read as follows: Page 3 47 "15-4A-2: PERMITTED USES: Only the following uses and developments may be conducted or constructed in the R-1 Zone: A. Single-family dwellings; provided, that where a dwelling containing 700 square feet or less exists on the rear portion of the lot and was placed thereon prior to, or for which a building permit was issued prior to December 26, 1947, in conformance to the requirements of ordinance 293 of the city, a second one -family dwelling may be erected on the front portion of the lot, whereupon the dwelling on the rear portion of the lot shall assume the status of a nonconforming use as defined herein, but may be expanded to a maximum of 700 square feet. B. Parks, playgrounds, recreational areas (publicly owned and operated) but excluding ballparks, bleachers, swimming pools or other types of facilities where racing or contests are conducted or public amusement devices are for hire. C. The keeping of animals and pets in accordance with title 6, chapter 2 of this code. D. A state authorized, certified or licensed family care home, foster family home, or group home serving six (6) or fewer children. E. A state authorized, certified or licensed residential facility, residential care facility, residential care facility for the elderly, intermediate care facility, developmentally disabled habilitative or nursing, or congregate living health facility, serving six (6-) or fewer persons. F. Home occupations. G. Small family daycare homes. H. Large family daycare homes pursuant to section 15-4A-4 of this article. I. One mobile or manufactured home subject to the following: The mobile or manufactured home has been certified pursuant to the national manufactured housing construction and safety standards act of 1974, and has not been altered in violation of applicable codes; and 2. The mobile or manufactured home must -be installed on a permanent foundation in compliance with all applicable building regulations and division 13, part 2 (commencing with section 18000) of the California Health and Safety Code. :. Tho rentins cf n" moro thon tai` (2) r-c-corno to not mora then foNr (fl pernonc por d,W,g Nnit. Page 4 .; J. On comoliant pargels only. one short-term rental unit Der parcel of a oexmitted. sinale-fami[v dwelling unit. or Dortion thereof, when conducted in arcordance with, a valid short-term rental permit issued pursuant to Title 4. Chanter 15 of the EI Seaundo Municipal Code. This subsection] will automatically sunset on June 30, 2021. Thereafter. short-term rentals will no longer bo a Derrrlitted use in the R-1 Zone and must be immediately discontinuec#L For oumoses of this section. a "comollgnt Darcel" is one that Drovides off-street oarkina on the parcel at a ratio of not less than one Darkiria sDace Der bedroom in the main residencelunit on the Darcel. Parhina spaces may include aaraae or driveway spaces. Tandem Darkina soaces are acceDtable orovided each tandem space measures at)east 9 feet by 20 feet and does not extend into an sidewalk or other public riaht-of-wav, 2. A j5hort-term rental DPit is not a Derroitted use in the absence of a valid short- term rental permit, 3. An accessory dwelling unit may not be used for short-term rental, K. Other similar uses approved by the Director, as provided by chapter 22 of this title." SECTION 7: Section 15-4B-2 ("Permitted Uses") of the EI Segundo Municipal Code is amended to read as follows: "15-413-2: PERMITTED USES: The following uses are permitted in the R-2 zone: A. Any use permitted in the R-1 zone. B. A two-family dwelling, duplex, or two (2) one -family dwellings. C. On compliant parcels only. the abort -term rental of a sinale-familv dweJlina. two famijv dwellina or duplex. or Dorfion thereof, when conducted in accDrdance witl�. a valid short-term rental oermitt issued pursuant to Title 4. Chaoter 15 of the El, Seaundo Municipal Code. This subsection] Will automatically sunset on June 30, 2021. Thereafter, short-term rentals will no longer be a Derrpitted use ip the R-2 Zone and must be immediately discontjnued. - 1. For Duropses of this section. a "coarnDliant Darcel" is orte that provides off -scree# Darkina on the parcel at a ratio of not less than one oarkina sDace Der ttedrooro for all dwellinp units on the oarce[. Parkina soaces may include aaraae 1 drivewav spaces. Tandem Dark1ng sDaces are acceptable provided each, tandem space measures at leas} 9 feet by 2,0 feet and does not extend into any, sideyvalk or otter Dublic riaht-of-wav, Page 5 2. A short-term rental unit is not a Dermitted use in the absence of a valid short- term rental oermit. 3. An accessory dwellina unit may not be used for short-term rental. D. Other similar uses approved by the director of planning and building safety, as provided by chapter 22 of this title. " SECTION 8: EI Segundo Municipal Code (ESMC) §15-4C-2 "Permitted Uses" is amended to read as follows: "15-4C-2: PERMITTED USES: The following uses are permitted in the R-3 Zone: A. Any use permitted in the R-2 Zone. B. Condominiums and stock cooperatives converted from multiple -family dwellings subject to the requirements of the Subdivision Map Act. C. Daycare centers. D. Large family daycare homes pursuant to section 15-4A-4 of this chapter. E. Lodging houses. F. Multiple -family dwellings. G. On compliant Darcels only. the short-term rental of a sinaje-family dwellina. two- family dwellina or duplex. or Dortion thereof. when conducted in accordance with a valid short-term rental hermit issued pursuant to Title 4. Chapter 15 of the El Seaundo MuniciDal Code. This subsection will automatically sunset on June 30. 2421. Thereafter. short-term rentals will no lonaer be a permitted use in the R-3 Zone and must be immediately discontinued. 1. For ourooses of this section. a "compliant parcel" is one that provides off-street parkin a on the Darcel at a ratio of not less than one oarkina space Der bedroom for all dwellina units on the Darcel. Parkina spaces may include s),praae or drivewav spaces. Tandem oarkina spaces are acceptable orovided each tandem space measures at least 3 feet by 20 feet and does not extend into anv sidewalk or other public richt-of-way. 2. A short-term rental unit is not a Dermitted use in the absence of a valid short- term rental Dermit. 3. An accessory dwellina unit may not be used for short-term rental. Page 6 WE H. Other similar uses approved by the director of planning and building safety, as provided by chapter 22 of this title." SECTION 9: Title 4 of the EI Segundo Municipal Code (ESMC) is amended to add thereto a new Chapter 15 "Short -Term Rental Permits" to read as follows: "Chapter 15 SHORT-TERM RENTAL PERMITS 4-15-1: PURPOSE 4-15-2: DEFINITIONS 4-15-3: PERMIT REQUIRED 4-15-4: AGENTS 4-15-5: APPLICATION FOR PERMIT; FEE 4-15-6: PERMIT EXPIRATION; RENEWAL 4-15-7: DENIAL OF PERMIT 4-15-8: CONDITIONS OF PERMIT ISSUANCE AND RENEWAL 4-15-9: REGISTRY 4-15-10: HOSTING PLATFORM RESPONSIBILITIES 4-15-11: PROHIBITIONS 4-15-12: ENFORCEMENT; PENALTIES 4-15-13: REMEDIES NOT EXCLUSIVE 4-15-14: SUNSET PROVISION 4-15-1: PURPOSE The purpose of this Chapter is to require the owner of a residential dwelling unit that is used as a short-term rental to apply for and secure a permit authorizing such use in the manner provided for in this Chapter. 4-15-2: DEFINITIONS For the purpose of this chapter, the following definitions shall apply: BOOKING: A reservation for a short-term rental. BOOKING TRANSACTION: Any reservation or payment service provided by a person who facilitates a short-term rental transaction between a prospective transient user and a host. HOST: Any person who is an owner, lessee, or sub -lessee of a residential dwelling unit offered for use as a short-term rental. Host also includes any person who offers, facilitates, or provides services to facilitate, the short-term rental of a residential dwelling unit, including, but not limited to, insurance, concierge services, catering, restaurant bookings, tours, guide services, entertainment, cleaning, property management, or maintenance of the residential property or unit regardless of whether the person is an Page 7 51 owner, lessee, or sub -lessee of a residential dwelling unit offered for use as a short-term rental. Any person, other than an owner, lessee, or sub -lessee, who operates a short- term rental unit exclusively on the Internet shall not be considered a host. HOSTING PLATFORM: A person who participates in the business of the short-term rental of a residential dwelling unit by collecting or receiving a fee, directly or indirectly through an agent or intermediary, for conducting a booking transaction using any medium of facilitation. OWNER: The person(s) or entity(ies) that hold(s) legal and/or equitable title to the short- term rental unit. PERSON: Any natural person, joint venture, joint stock company, partnership, association, club, company, corporation, business trust, or organization of any kind. SHORT-TERM RENTAL: The rental of any structure or any portion of any structure for occupancy, dwelling, lodging or sleeping purposes for a period of 30 consecutive calendar days or less. SHORT-TERM RENTAL UNIT: A dwelling unit, or portion thereof, that is made available for short-term rental. A "short-term rental unit" has historically been, and continues to be, included in the definition of "hotel" for purposes of Title 3, Chapter 4 of this Code. 4-15-3: PERMIT REQUIRED No owner of a dwelling unit located within a zoning district where short-term rental units are permissible may rent, offer to rent, or advertise for rent the short-term rental to another person without a valid short-term rental permit approved and issued in the manner provided for in this Chapter. 4-15-4: AGENTS An owner may retain an agent or a representative to comply with the requirements of this Chapter, including, without limitation, the filing of an application for a permit that has been signed and notarized by the owner, the management of the short-term rental unit, and the compliance with the conditions of the permit. The permit shall be issued only to the owner of the short-term rental unit. The owner of the short-term rental unit is responsible for compliance with the provisions of this Chapter and the failure of an agent to comply with this Chapter shall be deemed non-compliance by the owner. 4-15-5: APPLICATION FOR PERMIT; FEE An application for a short-term rental permit, or for renewal of a short-term rental permit, must be made on a form approved by the Director and must contain the following information: Page 8 52 A. The name, address and telephone number of the owner of the unit for which the permit is to be issued. B The name, address and telephone number of the agent, if any, for owner of the unit, and a signed affidavit from the property owner allowing agent to file an application on the property owner's behalf. C. Evidence that a City business license has been applied for or obtained for the separate business of operating a short-term rental. D. Evidence of valid transient occupancy registration certificate issued by the City for the short-term rental unit. E. Proof of general liability insurance in the amount of one million dollars combined single limit and an executed agreement to indemnify, defend, and save the City harmless from any and all claims and liabilities of any kind whatsoever resulting from or arising out of the short-term rental. F. An acknowledgment that the use of the property for a short-term rental unit is subject to a sunset provision and that owner will acquire no vested right to the continued use of any dwelling unit as a short-term rental unit after the sunset period has expired. G. An affidavit signed by the property owner attesting that the dwelling unit sought to be used as a short-term rental unit is his/her principal residence as defined in Section 4-15-8(A)(1). H. Such other information as the Director deems reasonably necessary to administer this Chapter. I. The short-term rental permit application must be signed by the property owner and notarized. J. An application for a short-term rental permit must be accompanied by a fee established by resolution of the City Council. 4-15-6: PERMIT EXPIRATION; RENEWAL A. Applications for short-term rental permits will be accepted for a pilot period commencing on February 1, 2020, through June 29, 2021. All short-term rental permits issued pursuant to applications received during the pilot period will automatically expire on June 30, 2021. B. All short-term rental permits issued after July 1, 2021 will automatically expire on December 31 of each calendar year. Short-term rental permits may be renewed on an annual basis provided the permit holder and the property are in full Page 9 53 compliance with this Chapter and all transient occupancy taxes due and owing pursuant to Title 3, Chapter 4 have been paid. C. Upon change of property ownership, the short-term rental permit will automatically expire. For purposes of this Chapter, a "change of ownership" has the definition set forth in Revenue and Taxation Code § 60 et seq. D. No short-term rental permit will automatically renew. It shall be the responsibility of the owner to renew each permit annually. To renew a short-term rental permit, the owner must submit an application in accordance with Section 4-15-5. E. A short-term rental permit may not be renewed if any required transient occupancy tax payment is past due. 4-15-7: DENIAL OF PERMIT No application for an original permit or a subsequent renewal shall be denied if it meets the conditions of permit issuance pursuant to 4-15-8. An application for a short-term rental permit must be denied if any information submitted by the applicant in connection with the application is materially false. Further, an original permit or a subsequent renewal may not be issued for any dwelling that is delinquent in the payment for its associated water service. 4-15-8: CONDITIONS OF PERMIT ISSUANCE AND RENEWAL A. All short-term rental permits and renewals are subject to the following standard conditions: The short-term rental unit must be the principal residence of the owner. For purposes of this section, "principal residence" means the place where the owner resides for more than half of the year. No short-term rental permit may be issued for a dwelling unit that does not serve as the owner's principal residence. If the owner of the dwelling unit is not a natural person or a trust, the person who claims the dwelling unit as his/her principal residence must be a shareholder, member, or partner of the corporation, limited liability company, partnership, or joint venture that owns the dwelling unit. 2. Parking must be provided on-site at a ratio of not less than one parking space per bedroom in the main residence/unit on the parcel and must be available for use by the short term rental guest(s). Parking spaces may include garage or driveway spaces. Tandem parking spaces are acceptable provided each tandem space measures at least 9 feet by 20 feet and does not extend into any sidewalk or other public right-of-way. If any of the required parking is provided in a garage, each garage space must be kept clear of debris and able to accommodate a vehicle at all times. Page 10 54 3. The owner must provide a 24-hour contact phone number and must be personally available by telephone on a 24-hour basis to respond to calls regarding the condition and/or operation of the short-term rental unit. The owner's contact information will be provided to the EI Segundo Police Department and all City departments. The owner must respond to an initial call within two hours and must commence action within 24 hours of the initial call to address any violation of this Chapter. 4. The short-term rental unit must at all times provide operable basic health and safety features, including fire extinguishers, smoke detectors, and carbon monoxide detectors. 5. The property of the short-term rental unit shall be maintained in a clean and sanitary condition. Trash and refuse shall not be left outdoors and shall not be left stored within public view, except in proper containers for the purpose of collection by the trash collectors. The owner must contract with the City's exclusive residential solid waste service provider for weekly solid waste services. If the owner or the owner's agent is not present on the site on the designated collection day, the owner must contract for roll out service (and pay the applicable cost thereof) to ensure that all receptacles are timely removed from the right-of-way after collection. 6. No signs or displays advertising the short-term rental unit are allowed on the subject property. 7. The short-term rental unit must have a clearly visible and legible notice in a conspicuous place inside the unit containing the information described below together with any additional information required by the Director. The notice required by this paragraph shall be in the form prescribed by the City. a. The name of the owner, agent, managing agency, or property manager and a telephone number at which that party may be reached; b. The maximum number of vehicles allowed to be parked on the property and their locations. c. Rules of conduct applicable to short-term renters and their guests. 8. The owner must maintain a transient occupancy registration certificate and must ensure the timely remittance of all transient occupancy taxes due in accordance with Title 3, Chapter 4 of this Code. 9. A short-term rental unit is for overnight lodging accommodations only and may not be used for, or advertised for use for weddings, parties, bachelor/bachelorette parties, conferences, or similar events. The owner is responsible for the content of all advertising with respect to the short-term Page 11 6•'1•". rental unit. 10. The occupancy of each short-term rental unit may not exceed two adults for each bedroom contained within the unit. If the short-term rental unit consists of a single bedroom or studio, no more than two adult occupants may be allowed. The applicable maximum occupancy must be included in every advertisement, posting, and listing for a short-term rental unit. 11. The short-term rental permit number must be included in every advertisement, posting, and listing for a short-term rental unit. 12. The short-term rental of space within any dwelling unit or garage for the purpose of storing personal property for compensation is prohibited in all residential zones. 13. An accessory dwelling unit may not be used for short-term rental. B. Special rules for short-term rentals in the R-2 Zone.- 1. one: 1. If all dwelling units on the parcel are under common ownership, only one of the dwelling units may be permitted for short-term rental. 2. If the dwelling units on the parcel are under separate ownership, each of the dwelling units may be permitted for short-term rental. C. Special rules for short-term rentals in the R-3 Zone: 1. If all dwelling units on the parcel are under common ownership, only one of the dwelling units may be permitted for short-term rental. D. A short-term rental permit may not be issued if a short-term rental permit for the unit has been revoked pursuant to section 4-15-12(C) or (D) within the last 12 months. E. The City Manager and/or Director shall have the authority to impose additional standard conditions, applicable to all short-term rental units, as necessary to achieve the objectives of this Chapter. F. The City Manager and/or Director shall have the authority to impose additional conditions on any permit in the event of any violation of the conditions of the permit or the provisions of this Chapter. G. The Director may direct a hosting platform to remove a listing for any unpermitted short-term rental unit or for any short-term rental unit that has had its permit revoked or suspended pursuant to this chapter. Page 12 56 4-15-9: REGISTRY All owners and their respective properties permitted for use as short-term rental units pursuant to this Chapter will be listed on a registry created by the City and updated periodically by the City. The City shall make a copy of the registry available electronically to any person upon request. 4-15-10: HOSTING PLATFORM RESPONSIBILITIES A. A hosting platform shall be responsible for collecting all transient occupancy taxes applicable to bookings completed through the hosting platform and for remitting the same to the City. The hosting platform shall be considered an agent of the owner for purposes of such transient occupancy tax collections and remittance responsibilities as set forth in Title 3, Chapter 4 of this Code. B. The hosting platform shall require the host to input the short-term rental unit's corresponding Short -Term Rental Permit Number, consistent with the City's alphanumeric format, before the listing can be displayed. Any short-term rental unit listing that predates this ordinance and that does not have a corresponding Short -Term Rental Permit Number shall be removed by the hosting platform within 30 days of the effective date of this ordinance. C. A hosting platform shall not complete any booking transaction for any residential property or unit unless it is listed on the City's registry created under Section 4-15- 9 at the time the hosting platform receives a fee for booking the transaction. The hosting platform shall remove any short-term rental listing upon request from the Director. D. A hosting platform shall provide the following information to the city on a quarterly basis: The total number of short-term rental units in the city listed on the platform during the reporting period, and 2. The total number of nights all short-term rental units were rented through the platform during the applicable reporting period. 3. The report shall be provided in an electronic format determined by the Director and shall include the URL of each listing and the corresponding Short -Term Rental Permit Number of each reported listing. E. A hosting platform shall not collect or receive a fee, directly or indirectly through an agent or intermediary, for facilitating or providing services ancillary to an unregistered short-term rental unit, including, but not limited to, insurance, concierge services, catering, restaurant bookings, tours, guide services, entertainment, cleaning, property management, or maintenance of the residential property or unit. Page 13 57 F. Safe Harbor. A hosting platform operating exclusively on the Internet, which operates in compliance with subsections (A), (B), (C), (D), and (E) above, shall be presumed to be in compliance with this Chapter. G. The provisions of this Section shall be interpreted in accordance with otherwise applicable State and Federal law(s) and will not apply if determined by the City to be in violation of, or preempted by, any such law(s). 4-15-11: PROHIBITIONS It is unlawful for any host to offer, operate, maintain, authorize, aid, facilitate or advertise the short-term rental of any residential dwelling unit without a valid short-term rental permit. It is unlawful to operate or maintain a short-term rental unit in violation of Section 4-15-8. Only a qualifying residential dwelling unit or portion thereof may be made available for short-term rental subject to this chapter and Title 15. It is unlawful to offer, operate, maintain, authorize, aid, facilitate or advertise the short-term rental of anything other than a dwelling unit or portion thereof for purposes of overnight lodging (for example, a vehicle, recreational vehicle, trailer, tent, yurt, etc.) 4-15-12: ENFORCEMENT; PENALTIES A. Any host violating any provision of this Chapter, or hosting platform that violates its obligations under Section 4-15-10, is guilty of an infraction which shall be punishable by a fine not exceeding $2,500 for the first violation and $5,000 for each additional violation within a twelve-month period, or as a misdemeanor which shall be punishable by a fine not exceeding $500 or by imprisonment for not more than six months. B. Any host who violates any provision of this Chapter, or hosting platform that violates its obligations under Section 4-15-10, shall be subject to administrative citations and penalties pursuant to Title 1, Chapter 2A of this Code. C. If, within any twelve-month period, the property upon which a short-term rental unit is located is the subject or the site of two violations of any of the provisions of this chapter, or of chapters 1, 2, or 13 of Title 7, or any combination thereof, the short- term rental permit for the unit shall be automatically revoked. In such a case, no new short-term rental permit may be issued for the subject dwelling unit for a period of twelve months from the date of revocation. For purposes of this section, the automatic revocation shall become effective as of the date the second citation within any twelve-month period becomes final (i.e., the time for administrative and/or judicial review has passed or final judgment of a court has been entered upholding the citation.) D. In addition to the penalties set forth herein, if the short-term rental unit or the dwelling unit that houses the short-term rental unit is the site of a loud or unruly gathering in violation of section 7-13-3 that results in the issuance of an Page 14 administrative citation and/or criminal charge, the short-term rental permit shall be automatically revoked if and when the administrative citation becomes final (i.e., the time for administrative and/or judicial review has passed or final judgment of a court has been entered upholding the citation) or a criminal conviction is obtained. In such a case, no new short-term rental permit may be issued for the subject dwelling unit for a period of twelve months from the date of revocation. E. The remedies provided in this Section are not exclusive, and nothing in this Section shall preclude the use or application of any other remedies, penalties or procedures established by law. 4-15-13: REMEDIES NOT EXCLUSIVE The remedies listed in this chapter are not exclusive of any other remedies available to the city under any applicable federal, state or local law and it is within the discretion of the city to seek cumulative remedies. 4-15-14: SUNSET PROVISION This Chapter shall remain in effect only until June 30, 2021 and as of that date this Chapter is repealed. The sunset or repeal of any provision of this Chapter does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before effective date of the sunset or repeal of the Chapter. Any such repealed part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of the repeal." SECTION 10: CONSTRUCTION. This Ordinance must be broadly construed in order to achieve the purposes stated in this Ordinance. It is the City Council's intent that the provisions of this Ordinance be interpreted or implemented by the City and others in a manner that facilitates the purposes set forth in this Ordinance. SECTION 11 _ ENFORCEABILITY. Repeal of any provision of the ESMC does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before this Ordinance's effective date. Any such repealed part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Ordinance. SECTION 12: VALIDITY OF PREVIOUS CODE SECTIONS. If this entire Ordinance or its application is deemed invalid by a court of competent jurisdiction, any repeal or amendment of the ESMC or other city ordinance by this Ordinance will be rendered void and cause such previous ESMC provision or other the city ordinance to remain in full force and effect for all purposes. SECTION 13: SEVERABILITY. If any part of this Ordinance or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Ordinance are severable. Page 15 59 SECTION 14: The City Clerk is directed to certify the passage and adoption of this Ordinance; cause it to be entered into the City of EI Segundo's book of original ordinances; make a note of the passage and adoption in the records of this meeting; and, within fifteen (15) days after the passage and adoption of this Ordinance, cause it to be published or posted in accordance with California law. SECTION 15: This Ordinance will take effect 30 days after its passage and adoption. PASSED AND ADOPTED this day of , 2020. Drew Boyles, Mayor APPROVED AS TO FORM.- Mark ORM: Mark D. Hensley, City Attorney ATTEST: STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO 1 I, Tracy Weaver, City Clerk of the City of EI Segundo, California, do hereby certify that the whole number of members of the City Council of said City is five; that the foregoing Ordinance No. was duly introduced by said City Council at a regular meeting held on the day of 2020, and was duly passed and adopted by said City Council, approved and signed by the Mayor, and attested to by the City Clerk, all at a regular meeting of said Council held on the day of 2020, and the same was so passed and adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: Tracy Weaver, City Clerk Page 16 0 EL SEGUNDO CITY COUNCIL MEETING DATE: November 19, 2019 AGENDA STATEMENT AGENDA HEADING: Public Hearing AGENDA DESCRIPTION: Zone Text Amendment creating a pilot program to allow and regulate Short -Term Rentals in the City's residential zoning districts through a Short-term Rental Permit process. ENVIRONMENTAL DETERMINATION: The proposed project is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Class 6 (Information Collection) (14 Cal. Code Regs. § 15306), because it involves creating a regulatory process for a use in the Residential zoning districts for a limited time. RECOMMENDED COUNCIL ACTION: 1. Conduct a public hearing; 2. Take testimony and other evidence as presented; 3. Introduce by title only and waive further reading of an Ordinance allowing short-term rentals in the City's Residential Zones through a Short -Term Rental Permit process; and, 4. Schedule second reading and adoption of the Ordinance for December 3, 2019; and/or, ATTACHED SUPPORTING DOCUMENTS: A. Proposed Ordinance No. B. Planning Commission Resolution No. 2852 C. Planning Commission Staff Report, dated June 27, 2019 (without attachments) FISCAL IMPACT: Potential revenue of $37,000 from permits and business licenses; and $125,000 from Transient Occupancy Taxes (TOT), which could offset a portion of Staff time involved with processing and monitoring applications. Amount Budgeted: None Additional Appropriation: None Account Number(s): 001-300-0000-3301 (Business License) 001-300-0000-3203 (Transient Occupancy Tax) tbd (Short-term Rental Permit) STRATEGIC PLAN COMPLIANCE Goal: Enhance customer service and engagement Objective: City services are convenient, efficient and user-friendly for all residents and businesses. PREPARED BY: Eduardo Schonbom, AICP, Principal Planner REVIEWED BY: Gregg McClain, Planning Manager Sam Lee, Planning and Building Safety Director Joseph Lilio, Finance Director Bill Whalen, Police Chief APPROVED BY: Scott Mitnick, City Manager 61 EXECUTIVE SUMMARY In 2016, Council was approached with concerns regarding residences being rented informally on a short-term basis (fewer than 30 days). At the direction of City Council, staff worked as a team to create a process for managing short-term rentals (STRs). The team consisted of representatives from Planning, Business License and Revenue, Police, and the City Attorney. The intent of the group was to find a way that creates the best balance of monitoring, enforcement and taxation on the one hand, and ease of participation and low cost on the other. Staff has been actively involved with the South Bay COGS working group on the topic of short- term rentals, and saw other cities adopt bans on STRs in 2016 and 2017. In the summer of 2017, staff conducted a survey that was posted on the City's website to obtain the public's opinions, attitudes and experiences with STRs. Paper surveys were also available at the city library and at the recreation center. Over 620 responses were obtained. Also in 2017 and 2018, Planning Commission conducted numerous public hearings on the topic, considering various code amendments to allow STRs, prohibit them, or regulating them. Most recently, on June 27, 2019, Planning Commission adopted a Resolution recommending City Council adopt an ordinance allowing STRs in the City's Residential Zones through a Short -Term Rental Permit process that would commence initially as a pilot program through June 30, 2021. The Commission and staff believe that a heavy-handed approach such as a ban would/could just drive the practice underground, ultimately increasing the need for enforcement while precluding the collection of revenue that might fund the enforcement effort. The Ordinance is now before City Council for its consideration. BACKGROUND The following is a summary of the various public hearings conducted on the matter: • July 27, 2017: Planning Commission considered a draft Ordinance to allow short-term rentals within the R-1 zone through a permit process. Planning Commission directed staff to modify the proposed ordinance to allow short-term rentals in all residential zoning districts. • August 10, 2017: Planning Commission adopted a Resolution recommending City Council approve an ordinance to expressly allow STRs in in all residential zoning districts, and allowing for the short-term rental of single-family residences, accessory dwelling units, condominium or townhomes, and in one apartment unit of an apartment complex. • November 7, 2017: City Council considered the code amendment to allow STRs in the City's Residential Zones. The item was continued to allow time for Staff to meet with the residents on Virginia Street, obtain additional public opinion on the issue, and return with additional information. • January 16, 2018: City Council directed staff prepare an ordinance that adds to the city's existing requirement specific to "party houses". • June 2018, City Council adopted a party house ordinance, establishing that loud or unruly gatherings are prohibited and constitute a public nuisance, and provides a means for the City to hold property owners and persons responsible for loud and unruly gatherings accountable through the issuance of administrative citations and other penalties. • October 11, 2018: Staff updated the Planning Commission regarding how other cities have addressed STRs, the typical impacts/issues associated with STRs, and the options available 2 62 to address STRs. Planning Commission voted 3-1-1 (Commissioner Keldorf dissenting and Chairperson Baldino absent) directing staff to draft an ordinance that expressly prohibits STRs. December 13, 2018: Planning Commission considered a draft Ordinance expressly prohibiting STRs, homesharing, and the advertisement of these activities. However, after further consideration, Planning Commission voted 4-1 (Vice Chair Newman dissenting) directing staff to prepare a draft ordinance allowing and regulating homeshares and short- term rentals. June 27, 2019: Planning Commission adopted a resolution recommending City Council adopt an Ordinance allowing STRs on residentially zoned properties subject to a permit and subject to operational conditions. Most notably is that the Ordinance is written such that allowance of the STRs and associated permits automatically sunset on June 30, 2021, after which short-term rentals will no longer be a permitted use. The limited pilot period allows the city the ability to ascertain whether STRs may be appropriate over the long term in residential zones before committing to making them permanent. DISCUSSION Definitions and Allowances The proposed Ordinance contains amendments to two Titles of the City's Municipal Code, specifically Title 15 (Zoning Regulations) and Title 4 (Business Regulations and Licensing). The amendments to Title 15 include new definitions for "Short -Term Rental" and for "Short -Term Rental Unit". The amendment also includes new language in the "Permitted Uses" section for each Residential zoning district to read as follows: X. On compliant parcels only, short-term rental units when conducted in accordance with a valid short-term rental permit issued pursuant to Title 4, Chapter 15 of the El Segundo Municipal Code. This subsection will automatically sunset on June 30, 2021. Thereafter, short-term rentals will no longer be a permitted use in the R-# Zone and must be immediately discontinued. #. For purposes of this section, a "compliant parcel" is one that provides off- street parking on the parcel at a ratio of not less than one parking space per bedroom for all dwelling units on the parcel. Parking spaces may include garage or driveway spaces. Tandem parking spaces are acceptable provided each tandem space measures at least 9 feet by 20 feet and does not extend into any sidewalk or other public right-of-way. #. A short-term rental unit is not a permitted use in the absence of a valid short- term rental permit. The proposed Ordinance allows short-term rentals on residentially zoned properties, provided that parking is available on-site and that a short-term rental permit is obtained. It is important to note that the Ordinance is written such that allowance of STRs and the associated permits will automatically sunset on June 30, 2021, after which short-term rentals will no longer be a permitted 63 use. The limited pilot period allows the city the ability to ascertain whether STRs may be appropriate over the long term in residential zones before committing to making them permanent. If STRs are deemed to be detrimental, the permits would expire, no new permits would be issued and short-term rentals must be immediately discontinued. If it is deemed necessary to extend the sunset date or if the use is determined to not create adverse impacts, then the sunset provision would be modified or deleted through a subsequent code amendment. In both instances, staff would monitor the activity and report its findings back to Planning Commission during the first quarter of 2021, with a recommendation as to how to proceed, which could include: a. Allow the pilot period to expire; b. Extend the pilot period; c. Lift the pilot period, thereby allowing STRs to operate subject to a valid STR permit; d. Take other action deemed appropriate to address issues that arise during the pilot period; or, e. Adopt an Ordinance expressly prohibiting STRs, and the advertisement of these activities. Short -Term Rental Permit Process Overview Since the Zoning Code would allow the operation of a STR only with a valid STR Permit, the amendment to Title 4 includes a new Short Term Rental Permit along with the requirements and conditions for issuance and operation. Issuance of the initial permit would not be discretionary and must be issued if the applicant meets the requirements in 4-15-8. As illustrated in the flowchart below, the process would begin with the submittal of a Short-term Rental (STR) Permit application. STR permit application submitted annually • Business License • Affidavit of principal residence Verify information • General liability insurance ($1 M) Review for violations -------------------------- Initial permit or renewal denied if: • 2 violations of STR ord, and ESMC. in previous 12 months • 1 violation of "party house" ord. Permit approved • Nonpayment of TOT • Nonpayment of water bill STR placed on City's Registry Monitor and respond to complaints Permit expires at end of calendar year — no automatic renewal Reapply C! • Code enforcement, PD, and possible contract vendor to track and respond as necessary • Automatic revocation for 2 STR violations in 12 -month period or for 1 violation of "party house" Ord. •E Steps 1-2: Planning staff would review the application and verify that a business license is pending; the applicant has signed the application, which contains the conditions that govern operating a STR (conditions are illustrated in the following section) and an affidavit that the location is the applicant's principal residence'; and ensure that the applicant has obtained general liability insurance for the proposed STR. Steps 3-4: Staff would then coordinate with Finance Department, Code Enforcement, and Police Department personnel to determine if there are any violations that would warrant denial of a STR Permit. The following would result in denial of a STR Permit: Unpaid water bills; Unpaid Transient Occupancy Taxes (TOT); or, The STR Permit was revoked within the previous 12 months If there are no disqualifying violations, the STR permit would be approved by Planning Staff and the STR permit would be valid through the end of the calendar year. Step 5: Staff would also create a registry of the approved/valid STR permits in El Segundo. The information would be available to the public upon request. Step 6: During the calendar year in which the STR operates, Staff would monitor the STR and respond to complaints received. It is important to note that not all complaints would be considered a violation since each complaint would be investigated. If a complaint is verified and warrants issuing a citation, one would be issued. And, to ensure that citees/permit holders are afforded due process, only citations that are final (the time for administrative and/or judicial review has passed or there is final judgment of a court upholding the citation) count toward the limit. In addition to citations, the following would result in automatic revocation of a STR Permit, and would make the property ineligible for another permit for 12 months from the date of revocation: • Two violations of the Short -Term Rental Ordinance (Title 4, Chapter 15), or of Chapters 1 (Nuisances), 2 (Noise and Vibration) or 13 (Social Host Regulations) of Title 7 within the previous 12 months; or, • One citation for violating ESMC Chapter 7-12-1 (Loud and Unruly Gatherings). Ooerational Conditiom As stated above, the application would include an affidavit signed by the property owner attesting that the dwelling unit is the owner's principal residence. The affidavit would also contain the operational conditions. The following is a list of the draft STR operational conditions, including those recommended by Planning Commission: The short-term rental unit must be the principal residence of the owner. For purposes of this section, "principal residence" means the place where the owner resides for more than half of the year. No short-term rental permit may be issued for a dwelling ' "Principal residence" means the place where the owner resides for more than half of the year. No short- term rental permit may be issued for a dwelling unit that does not serve as the owner's principal residence. 65 unit that does not serve as the owner's principal residence. Notwithstanding the foregoing, a permitted accessory dwelling unit may be used as a short-term rental unit if it is located on the same parcel as the owner's principal residence. If the owner of the dwelling unit is not a natural person or a trust, the person who claims the dwelling unit as his/her principal residence must be a shareholder, member, or partner of the corporation, limited liability company, partnership, or joint venture that owns the dwelling unit. 2. Parking must be provided on-site at a ratio of not less than one parking space per bedroom in the main residence/unit on the parcel and must be available for use by the short term rental guest(s). Parking spaces may include garage or driveway spaces. Tandem parking spaces are acceptable provided each tandem space measures at least 9 -feet by 20 -feet and does not extend into any sidewalk or other public right-of-way. If any of the required parking is provided in a garage, each garage space must be kept clear of debris and able to accommodate a vehicle at all times. 3. The owner must provide a 24-hour contact phone number and must be personally available by telephone on a 24-hour basis to respond to calls regarding the condition and/or operation of the short-term rental unit. The owner's contact information will be provided to the El Segundo Police Department and all City departments. The owner must respond to an initial call within two hours and must commence corrective action within 24 hours of the initial call to address any violation of this Chapter. 4. The short-term rental unit must, at all times provide operable basic health and safety features, including fire extinguishers, smoke detectors, and carbon monoxide detectors. The property of the short-term rental unit shall be maintained in a clean and sanitary condition. Trash and refuse shall not be left outdoors and shall not be left stored within public view, except in proper containers for the purpose of collection by the trash collectors. The owner must contract with the City's exclusive residential solid waste service provider for weekly solid waste services. If the owner or the owner's agent is not present on the site on the designated collection day, the owner must contract for roll out service (and pay the applicable cost thereof) to ensure that all receptacles are timely removed from the right-of-way after collection. 6. No signs or displays advertising the short-term rental unit are allowed on the subject property. 7. The short-term rental unit must have a clearly visible and legible notice in a conspicuous place inside the unit containing the information described below together with any additional information required by the Director. The notice required by this paragraph shall be in the form prescribed by the City. a. The name of the owner, agent, managing agency, or property manager and a telephone number at which that party may be reached; b. The maximum number of vehicles allowed to be parked on the property and their locations. C. Rules of conduct applicable to short-term renters and their guests. M 8. The owner must maintain a transient occupancy registration certificate and must ensure the timely remittance of all transient occupancy taxes due in accordance with Title 3, Chapter 4 of this Code. 9. No more than one booking is allowed for any given night. 10. A short-term rental unit is for overnight lodging accommodations only and may not be used for, or advertised for use for weddings, parties, bachelor/bachelorette parties, conferences, or similar events. The owner is responsible for the content of all advertising with respect to the short-term rental unit. 11. The occupancy of each short-term rental unit may not exceed two persons for each bedroom contained within the unit. If the short-term rental unit consists of a single bedroom, no more than two occupants may be allowed. The applicable maximum occupancy must be included in every advertisement, posting, and listing for a short- term rental unit. 12. The short-term rental permit number must be included in every advertisement, posting, and listing for a short-term rental unit. 13. The short-term rental of space within any dwelling unit or garage for the purpose of storing personal property for compensation is prohibited in all residential zones. Step 7: Absent revocation, the STR permit would be valid until the end of the calendar year, at which time the STR permit would automatically expire. Assuming that STRs would be allowed for the long-term, the applicant would reapply for a new STR permit for the following calendar year and the process would repeat. Snecial Rules in R-2 and R-3 Zones The intent of the ordinance is to allow one STR on a property in all residential zones. In the R-1 zone, one STR would be permitted either of a single-family unit (or portion) or of a permitted ADU, not both. In the R-2 and R-3 zones, the draft ordinance includes special rules to limit the number of STRs. In the R-2 and R-3 zones, if all dwelling units on the parcel are under common ownership (such as a duplex, triplex or apartment complex), then only one unit can be permitted as a STR; but if dwelling units on the parcel are under separate ownership (such as condominiums), then each dwelling (or portion) may be permitted as a STR. In the R-3 zone, an additional restriction is that ADUs may not be used as a STR. Hosting Platform Responsibilities The draft Ordinance includes provisions for hosting platforms, requiring platforms to collect and remit TOT to the city. Other requirements for hosting platforms include disclosing STR listings and their locations; and prohibit bookings of STRs that do not have a valid STR Permit issued by the City. These provisions stem from a recent Federal district court dismissal of a lawsuit filed by Airbnb and Homeaway that challenged the City of Santa Monica's STR law.' The lawsuit sought z HomeAway. com, Inc. v. City of Santa Monica, (C.D. Cal. June 14, 2018) 2018 WL 3013245. 7 67 to invalidate portions of the City's law that penalize online platforms for booking short-term rentals of unlicensed properties. Potential Revenue Revenue would come from the annual business license fee, the annual short-term rental permit fee, and from the transient occupancy tax (TOT). Although fees are established by Council Resolution, the business license fee is anticipated to cost approximately $110, while the Short-term Rental permit fee is $206. Revenue from TOT depends on the nightly rate charged, the number of nights booked, and the number of short-term rentals in operation. However, assuming there are 100 short- term rental units and each unit is rented every weekend in the year, the potential TOT could be approximately $125,000. Planning Commission Recommendation On June 27, 2019, Planning Commission adopted a resolution recommending City Council approve the proposed amendment to allow the operation of short term rentals in the City's Residential Zones through a Short -Term Rental Unity Permit process. After hearing from over 20 speakers (both in favor and opposed), Planning Commission discussion resulted in modifications to the proposed Ordinance presented by Staff. In summary, Planning Commission requested the following modifications to the Ordinance: 1. Add language prohibiting the use of the garage for commercial storage of items. 2. Modify the Registry so that a copy is made available to any person upon request (as opposed to publishing the list on the City's website). 3. Add an occupancy limitation, and require that the occupancy be listed in the advertisement. 4. Require that the city -issued permit number be displayed in the advertisement of the STR. 5. Add language prohibiting the use of a car, RV, tent, trailer, etc. as a STR. Staff has incorporated language in the proposed Ordinance in accordance with the Commission's request. Potential Use of Monitoring Company In addition to the recommendations above, Planning Commission recommended that City Council consider utilizing a private company that can assist the City with scanning the internet to identify STR advertisements across the multiple online platforms that are available for advertising STRs. Additional Edits to Draft Ordinance Since Planning Commission's consideration of the Draft Ordinance, Staff has further considered the penalties for violations of the proposed STR Ordinance. As currently proposed, the penalties include a fine of $250 for the first violation and $500 for the second and subsequent violation. Staff believes that to incentivize compliance and minimize impacts to the community, fines for violating the proposed Ordinance must be increased to $2,500 for the first violation and $5,000 for the second violation, similar to fines for violating the City's unruly gathering Ordinance. Staff has also considered the duration of the pilot period, and is suggesting the pilot period be open through June 30, 2021, rather than the initial December 31, 2020. Staff believes this will provide .: a full year of monitoring before going back to the Planning Commission and City Council. This allows staff to assess a complete summer season and a complete holiday season, whereas the previous December 31 st sunset would only allow an assessment of the summer season. Next Stens If City Council approves the amendment, Staff will finalize an application form and commence accepting applications as early as January 15, 2020 through June 30, 2021. During this time, Staff would ascertain whether STRs may be appropriate over the long term in residential zones before committing to making them permanent. Staff would monitor the activity and report its findings back to Planning Commission in the Fall 2020, along with a recommendation as to how to proceed. The proposed Ordinance has been prepared such that if no action is taken next year, then the pilot program ends, all permits expire, and no new permits or renewals would be issued for subsequent years. CONCLUSION For the foregoing reasons, Planning Staff recommends that City Council introduce an Ordinance amending Titles 4 and 15 of the El Segundo Municipal Code; and schedule second reading and adoption of the Ordinance for December 3, 2019. .• EL SEGUNDO CITY COUNCIL AGENDA ITEM STATEMENT AGENDA DESCRIPTION: FY 2018-19 City Strategic Work Plan Year -End Report. RECOMMENDED COUNCIL ACTION: 1. Receive and file. ATTACHED SUPPORTING DOCUMENTS: MEETING DATE: February 4, 2020 AGENDA HEADING: Staff Presentation 1. Exhibit A — 4th Quarter FY 2018-19 Strategic Work Plan update STRATEGIC PLAN: Goal: 5(b) Champion Economic Development and Fiscal Sustainability: Objective: 2 The City will maintain a stable, efficient, and transparent financial environment FISCAL IMPACT: $ (0) Amount Budgeted: $0 Additional Appropriation: N/A PREPARED BY: Joseph Lillio, Finance Directo REVIEWED BY: Barbara Voss, Deputy City Manag C'v APPROVED BY: Scott Mitnick, City Manager `�0( BACKGROUND & DISCUSSION: On December 18, 2018, City Council adopted the FY 2018-19 City Strategic Plan. The Plan includes the City's Mission Statement: "Provide a great place to live, work and visit," and serves as the foundation for the City's five major goals. These goals are: 1. Enhance Customer Service and Engagement; 2. Support Community Safety and Preparedness; 3. Develop as a Choice Employer and Workforce; 4. Develop and Maintain Quality Infrastructure and Technology; 5. Champion Economic Development and Fiscal Sustainability. This is the year-end update on the City Strategic Plan progress. Preparing this report allows the City to align its efforts and resources to ensure goals were accomplished. This plan sets the course for the City organization to ensure the City's mission is accomplished. 70 The Strategic Plan is a living document and should not be considered static by any means. The Strategic Plan features a framework that can be adjusted based on the current needs of the community. The goals, objectives, activities, and Key Performance Indicators (KPIs) will be reviewed annually. Also, on a quarterly basis, the City will provide updates on the progress and performance of the Strategic Plan. As such, the plan may be modified to ensure that stated goals are aligned with the needs of the community. The City's Year-end plan update includes a status column that delineates whether there is compliance with each activity. Green — Current conwlianee with stated aetivih : City is on target to fully implement or has already implemented the stated activity. Yellow Current non-compliance with stated activity: City activity is not fully implemented as identified in the Strategic Plan but the estimated date to achieve full implementation has been delayed. Red : Current non-commliance and cannot comply with stated activity: City activity is not currently attainable as identified in the Strategic Plan and staff recommends suspending attempts to pursue implementation at this time. This may necessitate a change in the activity in the future. Some key highlights of the work plan update are: • Of the 58 work plan items identified, 88% of the items have been completed, with some initiatives ongoing. There are 7 yellow items (12% of the total) that started to be addressed during FY 2018-19, and will be completed in 2019-20: o Streamline the contract policy for greater efficiency and effectiveness; o Implement the business center for increased customer service and efficiency; o Develop a new approach to human resources that will position the City for being a choice employer and meeting future workforce needs; o Enhance employee safety and reduce accidents and costs; o Use the full potential of (existing) software; o Implement the accessory dwelling unit ordinance, reflecting amendments as necessary; o Explore developing a strategy in collaboration with other cities to get relief from low property tax with the potential of working toward a future statewide ballot measure; and o Evaluate creating a risk manager position to establish a coordinated program of management and reduction of costs associated with liability claims and workers' compensation. There are no items identified to be put on hold - and reevaluated. With the development and implementation of the Strategic Plan, the City reaffirms its commitment to continue to provide exceptional services and programs to its community. 71 FY 18-19 4th Quarter City of EI Segundo Strategic Plan 2019 to 2021 Status Report as of September 30, 2019 This document contains all of the goals, objectives and activities in the current strategic plan. The status of each activity is shown. The items highlighted in green are the Priority Activities as determined by the Council in 2018. GOAL 1: Enhance Customer Service and Engagement Tier 1 Priority Activities Activity Activity to be delayed for the completed in foreseeable 2019-20 future; may need to modify a. Develop an effective strategy for improving City Manager X Communications Program formed under Deputy communications with the public City Manager. Presented to City Council in May '19, b. Clarify roles and expectations of the Council, City Manager X Staff working with Committees to clarify bylaws. committees, boards, subcommittees and task forces c. Strengthen relationships between Council, City Manager X Teambuilding held with School Board Executives to executives and staff discuss during retreat. Working on teambuilding experience between City Council and executive staff. Working on employee survey. Other Activities Finance/City X Streamlined portions of the contract processing d. Streamline the contract policy for greater Clerk within the City Clerk's Office. In the process of efficiency and effectiveness completing IS Charter to implement possible technology solutions related to inter departmental processes. Conduct a review workshop for City Staff with the City Attorney's Office. e. Develop and implement an operations and Rec/Parks X Aquatics Center opened in January 2019; primary management plan for the new aquatics center I user groups began regular scheduled in March/April 2019 and community programming has been v expanded. A Year 1 Review will be completed and N presented to Council in March 2020. 1 FY 18-19 41h Quarter f. Implement the business center for increased Planning/BS/IS customer service and efficiency — new Citywide permit system g. Develop options for expanding Library services v w Activity Activity to be delayed for thd Status and Comments completed inforeseeable 2019 -200 --future; may need to modify - 11 -X New Citywide Permit System - focusing on implementing the new system. Necessary technology for the city's business center. Anticipated completion is June 2021. Activities to date — RFP, Vendor selection, contract, and secure project team have been completed. Kick off meeting is anticipated in February. Library X Updated technology for better customer service, including improving Wi-Fi access and implementing self -checkout, wireless printing, public scanning,— and online booking of the library's meeting rooms. Introduced new library partnerships and programs and facilitated a series of Community Conversations with teens and older adults to learn about residents' aspirations for EI Segundo. P) Additional options for expanding Library services were presented for Council consideration during Strategic Planning and Budget Study Sessions. A Library Park activation project in FY 2019-2020 will expand Library services and programs outdoors. FY 18-19 4th Quarter v' I Activity to be tete/ completed in way In 2019-20 18-i9 h. Provide GIS software access to basic property Is X information and relevant documents Goal IB: El Segundo's engagement with the community ensures excellence. Other Activities Activity delayed for the Status and Comments foreseeable future; may need to modik] J Beginning initial research for a road map to improving GIS software and services on a sustainable scale and timeline. Latest accomplishments are as follows: • Updated Public Works field collection utility Software (Inframap) and software (Windows) on Public Works field tablets • Created new interactive Web Maps to better connect the pubic with our City Created Public Art Story Map for the EI Segundo Public Library to showcase art around the City • Created City Maps homepage for new City Website slated to launch January 28 2020 Finance/City X V NPS based community surveys conducted, a. Obtain customer feedback, assess customer Manager results analyzed and action plans being developed; satisfaction and use it to improve services through transactional surveys are on hold and under surveys and other methods (e.g., annual resident evaluation for improvement; annual NPS surveys to and business survey, transactional and event continue for residents and businesses. questionnaires, and personal outreach throughout the year) b. Proactively identify City successes and highlight City Manager X Part of City e -newsletter and City Manager them to the public message. To be expanded with communications program/website replacement. v 3 FY 18-19 4th Quarter c. Update the website and create a mobile app for IS X full interface with the website Activity Activity to be delayed fort 0! Status and Comments completed in foreseeable 2019-20 future; may need to modify• A soft website launch will take place in late January 2020. We will work through all the post launch processes and functionality in February 2020, with an official publicized launch on Valentine's day! d. Expand use of social media as communication tool CM X Use of social media increased with communications program to be expanded with website replacement. Goal 2: Support Community Safety and Preparedness Goal 2A: EI Segundo is a safe and prepared city. Tier 1 Priority Activities Implement strategies for recruitment and training PD X HR Director and Chief of Police, along with Police of police officers Command Staff, are currently reviewing and analyzing current efforts, and developing strategy for recruitment of Lateral officers, along with Academy Graduates, and Police Officer Trainees. Implement strategy with open Academies for in- person recruitment of pre -service candidates. Review issues and concerns regarding Lateral transfers by "classic" safety members compared to PEPRA Laterals Increase community awareness of the need for PD/Fire X The new hybrid Community Emergency Response preparedness; increase the number of people who Training (CERT) class has been successful with an are prepared for disaster and involved in CERT additional 12 CERT members trained during the services we offer June class. This new hybrid class includes on-line training at the CERT member's discretion with a hands-on 8 hour manipulative final training session at Fire Station 2. During the 2018-19 performance period, 43 new community members were trained in CERT. v cn 4 FY 18-19 4th Quarter Tier 2 Priority Activities Activity Activity to be delayed for to.. completed in foreseeable Status and Comments 2019-20 future; may need to modify c. Enhance the public safety in the City's streets and PW X Public safety improvements are completed each sidewalks and every year as part of the CIP Program and through Traffic Committee actions. The Downtown Traffic and Pedestrian Safety Study was completed last year and recommendations for improvements were installed last year as well. Other Priorities d. Initiate the fire accreditation process, to include a Fire X The first phase of the accreditation process was response coverage study started through a community -driven strategic plan process that began in September 2019. The community -driven strategic plan was completed in December 2019 with the second phase, a community risk profile and standards of cover report, initiated by Q1 of 2020. e. Meet and where feasible exceed national Fire X All EI Segundo Firefighters continue to receive at standards for in-service training and employee minimum two (2) hours of mandatory training each development day to meet and when possible exceed the national standards. Over 10,000 hours of in-service training was conducted during the 2018-19 performance period. v rn 5 FY 18-19 4th Quarter f. Establish and maintain a local all -hazard Incident Emergency X Management Team (IMT) Management v v 0 Activity Activity to be delayed for the Status and Comments completed in foreseeable 2019-20 future; may need to modify The Incident Management Team has been established. Maintenance and exercising will be ongoing. Specifically, maintenance has occurred by entering all members of the incident management team into OneResponder, a software program that tracks team member training and performance. One of our finance section chiefs attended the All - Hazards Incident Management Teams Association annual conference in December. A group within EverBridge has been created that assists with the activation of the incident management team. The Incident Command Post (formally known as the EOC) has been cleaned out, TVs have been remounted on the walls, the indoor Satellite phone has been checked for operation, inoperable phones have been fixed/replaced/ and old surplus equipment has been turned in. Future maintenance includes a Table Top Exercise scheduled for May 22. An emergency operations plan review, three training courses will also be scheduled. FY 18-19 41h Quarter Goal 3: Develop as a Choice Employer and Workforce Goal 3A: El Segundo is a City employer of choice and consistently hiring for the future, with a workforce that is inspired, world-class and engaged, demonstrating increasing stability and innovation Tier 1 Priority Activities Develop a new approach to human resources that will position the City for being a choice employer and meeting future workforce needs HR 7 Activity Activity to be delayed for the completed in foreseeable 2019-20 future; may need to modify X This is an on-going continual process improvement strategy. Develop and implement "Learning Based" organization principles: held inaugural Leadership Development Academy. Develop and implement Mid -Mgr retreat, as well as town hall and strategy meetings with Managers & Executive Mgmt. Strengthen overall recruitment efforts by collecting and managing data related to recruitment and hiring timelines; Develop and implement computer based training opportunities for all City staff; coordinate and implement an Employee Wellness program. Efforts to be completed in 2019-20 include: Lunch and Learn program —for ongoing learning opportunities; Wellness Program update and improvements based upon employee feedback/use patterns; align training programs and tailor training programs for employee development and growth v co P FY 18-19 4th Quarter Activi ' Activity delayed for • • • - delayed & to tatus -Comments • . and Activities Department foreseeable be completed future; may in 2019-20 need to rn;t��� Tier 2 Priority Activities _ b. Complete current labor negotiations HR X Completed the following labor negotiations in FY 18-19: POA, FFA, PSSEA, CEA, Mgmt. Confidential and Exec Mgmt. Completed the following labor negotiations in 1st Qtr. of FY19-20: PMA and SPEA. Implementation of multi-year provisions of each MOU in timely and coordinated effort with Labor and with internal operating departments c. Improve our employees' experience in our HR X Ongoing, continual process improvement strategy. organization and enhance employee/management Current HR Department outreach to all Labor relations Associations, for ongoing communication and staff development opportunities such as the comprehensive Leadership Academy. d. Conduct a review of part-time classifications and HR X Review of PT classifications (non -covered), for wages to ensure the City can attract and retain attraction and retention following completion of all needed staff labor negotiations. e. Fill vacant positions in order to provide needed HR X Ongoing, continual process improvement strategy; services to the community Developed and implemented a monthly vacancy report continue to review vacancy reporting and recruitment data mining for process improvement; and in conjunction with Goal #2 above (police recruitment and training). Other Activities f. Engage a third -party to conduct a Human Finance/HR X Independent assessment of HR complete. Resources audit to identify best practices that will Implementation on projects/focus areas is enable the City to become a choice employer underway. v co P FY 18-19 4th Quarter g. Improve our attention on employee development HR X and engagement (e.g., develop leadership bench - strength professional development plans, meaningful employee evaluations, succession planning) h. Enhance employee safety and reduce accidents and costs Implement formal and informal methods of recognizing employees which are valued by the City M. HR HR �t Activity Activity to be delayed for the Status and Comments completed in foreseeable 2019-20 future; may need to mod#y, Ongoing, continual process improvement strategy, currently reviewing the organization and HR will develop a vision for employee development and engagements. Implemented Leadership Development Academy; and will coordinate future staff development and training with Executive Team, and City workforce. Working with City Management., and labor associations to develop additional staff development and engagement strategies. Ongoing continual process improvement strategy, including focus training on loss leaders. Currently working with our third party administrator to review and analyze employee injury trends. Develop and implement City-wide employee safety training program, with focus on WC loss leaders. Employee softball game held in October 2018; Employee Appreciation luncheon held in December 2018; Employee Service Awards recognition was held in March 2019; Working with Employee Engagement Committee, labor associations and through other work committees, to develop other informal methods for employee recognition and efforts. FY 18-19 4th Quarter Goal 4: Develop and Maintain Quality Infrastructure and Technology Goal 4A: El Segundo's physical infrastructure supports an appealing, safe and effective community. Tier 1 Priority Activities a. Focus on improving City facilities through completing a conditions assessment and making improvements Tier 2 Priority Activities b. Develop and deliver a multi-year capital improvement plan (CIP) Other Activities c. Develop a plan to utilize increased transportation funding d. Regularly assess Citywide facility conditions meet safety standards and best practices e. Identify funding and commitment to future infrastructure needs. PW Activity Activity to be delayed for l.—I Status and Comments completed in foreseeable 2019-20 future; may need to modi X Citywide Facilities Condition Assessment completed and approved by Council for implementation last year. $44M, 20 -year program. Projects are being implemented as part of the newly -created 3 -year CIP Program. PW X i i PW x PW x PW X f. Monitor the desalinization plant project of the CM x water district 00 10 3 -year CIP Program produced and adopted by Council this current FY. Delivery on-going. Plans to develop a 5 -year CIP program in place. In process as part of the multi-year CIP Program. Done by staff each day to ensure a safe user environment. FCA has identified projects to ensure compliance. New Multi-year CIP will assist with this process. $4M in Measure M and $5M in Measure R (pending Metro Board approval in spring) awarded for EI Segundo Boulevard and Park Place projects, respectively. I Comments provided on draft EIR— waiting for release of FEIR. FY 18-19 4th Quarter Goal 48: El Segundo's technology supports effective, efficient and proactive operations Tier 1 Priority Activities Activity Activity to be delayed for the completed in foreseeable 2019-20 future; may need to modify a. Successfully implement new technology as IS X ISD staff is implementing 11 high priority projects prioritized in the Technology Master Plan from the Technology Master Project list. 6 projects are pending initiation, and 10 projects have been successfully completed. As a mid -year check, the department will meet with Directors and the Tech subcommittee to review, validate and reprioritize projects where appropriate. Tier 2 Priority Activities b. Digitize document imaging of historical plans and IS X Plan has been created and scanning is in process. records to aid in public accessibility Currently about 10% complete with scanning of ` historical plans. c. Implement emergency operations center (EOC) CM X I Received preliminary approval for a grant from LA software _ County in order to acquire the software. Other Activities d. Use the full potential of software IS X ISD continues to work with Departments to promote efficiency and process improvement. Analysis of a number of preexisting business applications is in process to increase usage and efficiency where applicable: IN 11 • Eden Requisition Module — use of the electronic automated requisition module completed — reduces paper usage and routing time by making it all electronic FY 18-19 4" Quarter d. Cont'd — Use the full potential of software e. Implement paperless goals. IS/All City Departments X 12 Activity to be completed in 2019-20 Activity delayed for the foreseeable future; may need to modify • Expanded usage of the conference call capability within the existing phone system is completed • Use of document imaging system to optimize city wide contract & insurance management processes -80% complete • Eden HR Module — a gap analysis is schedule to kick-off in March 2020 ISD staff is continuing to work with Departments to identify stretch goals to reduce paper use and automate processes. Examples: Expanded use of the Eden requisition modules which allows City staff to submit purchase requisitions to the purchasing agent in an automated/paperless fashion. Four Departments are currently utilizing the software, while training is still in process for the remainder of the Departments. ISD has replaced the City's Multifunction Printers (MFP) fleet with newer models. Software was installed to monitor and manage the City's print volumes to promote conservative printing practices and reduce the City's print volumes. FY 18-19 4th Quarter f. Install Wi-Fi in all critical facilities. I IS X Goal 5: Champion Economic Development and Fiscal Sustainability Goal SA: El Segundo promotes economic growth and vitality for businesses and the community. Tier 1 Priority Activities a. Advocate for the City's interests regarding the impacts of LAX. Tier 2 Priority Activities b. Complete the golf course request for proposals process and determine the future of the property. CM Rec/Park X Activity Activity to be delayed for the completed in foreseeable 2019-20 future; may need to modi Wi-Fi has been installed in the most critical facilities; this is an ongoing project and will take a number of years to fully optimize: -A wireless assessment of the City is in process to determine the City's current system capacity to offer additional Wi-Fi options. -Recently ISD optimized free Wi-Fi services by doing away with user login to access Wi-Fi services. -ISD worked with the Library to implemented wireless printing and self-service check-out. Ongoing X Council subcommittee entered exclusive negotiations with Centercal/Topgolf; Ground Lease Agreement & Management Agreement were approved by Council November 5, 2019; the Due Diligence Period and "conditions precedent" are expected to be satisfied in February 2020 with a target premises turnover in late March or early April 2020. 13 FY 18-19 4 1 Quarter Activity Activity to be unattainable in completed in 2019 or 2020; 2019-20 may need to modify c. Implement the accessory dwelling unit ordinance, P&BS x Will adopted ADU Ordinance Ordinances in Feb. reflecting amendments as necessary. 2020. d. Refine our focus on economic development to CM X Ongoing define who we want to attract and why. Other Activities _ e. Implement Downtown improvements and "re- CM & X Completed landscaping upgrades and ongoing imagine" the downtown, which includes Downtown maintenance, installed lighting over three downtown beautification, developing a vision for Sub- downtown intersections, working on parklet design the downtown, promoting the downtown and committee review and approval. The downtown area is creating a funding source for marketing the highlighted on new websites, (ElSegundoBusiness.com and downtown. Destination ElSegundo.com). Tree uplighting project was completed last year. f. Implement the economic development strategic CM X Plan is complete; implementation is underway plan in order to promote business attraction, retention of existing businesses, and industry diversification. g. Conduct proactive outreach with existing CM X Developing Mayor's CEO Roundtable Program. businesses as part of the City's business retention Working with EDAC Business Retention Committee to schedule visits. program. h. Enhance new business attraction, marketing and CM X Completed two new websites branding efforts through public relations and (ElSegundoBusiness.com, and advertising. Destination ElSegundo.com). Enhanced digital advertising campaign launched in January 2019. Ongoing social media posting. i. Launch hospitality and tourism marketing CM X Hospitality & Tourism, R&D, and communication program. strategy complete. Implementation of communications plan is underway. 14 FY 18-19 4th Quarter j. Identify EI Segundo's advantages for employers CM X and use that to inform marketing campaigns to attract new employers. GOal 58: El Segundo approaches its work in a financially strategic and responsible way. Tier 1 Priority Activities a. Continue to implement a strategy to shrink Finance X pension liabilities. b. Continue on a sustainable financial path, solve Finance future structural deficits and maintain reserves. Tier 2 Priority Activities c. Negotiate the trash contract, assess services, and PW determine how to pay for the services. X Activity Activity to be unattainable completed in 2019 or 2020 2019-20 may need tc modify Information available on Elsegundobusiness.com and ongoing. City Council has approved actions that have saved the City ^'$11.7 million over the next —25 years. City Council approved $2.5million with the FY 18-19 budget to address pension liabilities. This is a priority activity that will be continuously monitored. POA, FFA, PSSEA & CEA Employees picked up additional pension costs in their new MOUS. Executives, Management & Confidential staff picked up an additional pension costs as of July 2019. Being done through labor negotiations, Pension Ad - Hoc committee, and through Strategic Plan & Budget X RFP and Prop 218 process approved. New automated trash service commenced May 2019 with a residential (SFH/Duplex) monthly fee of $15. d. Identify new revenue options for operations and Finance x infrastructure. e. Explore developing a strategy in collaboration with Finance other cities to get relief from low property tax c ith the potential of working toward a future Cstatewide ballot measure. 15 Measure C passed. City-wide fee study complete. Staff continues to research further options. Prop 218 process for Solid Waste completed. Prop 218 process for water & wastewater underway. Annual update to the master fee schedule planned. X In preliminary discussions with other cities. FY 18-19 4 1 Quarter f. Create a development fee for the arts to help with economic development. g. Review the business license tax to determine the appropriate level. h. Evaluate creating a risk manager position to establish a coordinated program of management and reduction of costs associated with liability claims and workers' compensation. Other Activities i. Conduct a water and sewer rate study to ensure adequacy of rates to support the water and sewer systern_ j. Annual review of the City's master fee schedule and cost recovery policy to support City programs and needs. Library X j� HR On November 19, 2019, the EI Segundo City Council adopted Ordinance 1594 amending Title 15 of the EI Segundo Municipal Code establishing a Public Art or In -Lieu Fee Requirement and a Cultural Development Fund. The requirement applies to specific commercial and industrial developments with a project cost exceeding $2,000,000. The new requirement should equate to approximately $685,000 in public art and fee revenues per year. Will be discussed during 2020 Strategic Planning Meeting. X i Under review in 2020. Finance X Process underway and will be completed in FY 2019-20 Finance X Completed for the first time in August 2019 & will continue to review all fees w/ Budget Process and apply an appropriate CPI factor on annual basis. 16 EL SEGUNDO CITY COUNCIL MEETING DATE: February 4, 2020 AGENDA ITEM STATEMENT AGENDA HEADING: Staff Presentation AGENDA DESCRIPTION: Proposed 2020 Legislative Platform which represents the City's positions on proposed regional, state and federal legislation. The platform is intended to provide clear direction to the City Manager to respond and take action on proposed legislation that will impact the City. RECOMMENDED COUNCIL ACTION: 1. Approve 2020 Legislative Platform ATTACHED SUPPORTING DOCUMENTS: 1. 2020 Legislative Platform FISCAL IMPACT: None PREPARED BY: Barbara Voss, Deputy City Manager APPROVED BY: Scott Mitnick, City Manager BACKGROUND & DISCUSSION: The purpose of the City's annual Legislative Platform is to represent the official City positions on proposed regional, state, and federal legislation. The Legislative Platform is aligned with the City's five Strategic Goals which focus on providing the highest level of service to the City's residents and businesses. The Legislative Platform provides clear direction to the City Manager to respond and take actions quickly, under the direction of City Council, as initiatives that impact the City are considered at the regional, state, and federal levels. The City Manager shall coordinate the monitoring of legislative issues that impact the City and ensure that the City takes a position on all applicable proposed regional, state-wide, and national legislation, regulation, and related matters. The City Manager will update the Legislative Platform throughout the year, as necessary, to address and prioritize new issues as they relate to the City or the region. The Legislative Platform does not preclude City Council consideration of additional legislative and regulatory matters arising throughout the year. As necessary, Staff will solicit, City Council authorization to, amend the Legislative Platform to include items not included in the existing Legislative Platform. The City's primary legislative focus includes protecting local government control, maintaining local government revenue, pursuing public security funding, obtaining funding for environmental sustainability, transportation, recreational, technology and public infrastructure improvements. Staff recommends approval of the 2020 Legislative Platform. CPPV OF EL,SEGUNDO 2020 Legislative Platform Introduction The purpose of the City's annual Legislative Platform is to represent the official City positions on proposed regional, state, and federal legislation. The Legislative Platform is aligned with the City's five Strategic Goals which focus on providing the highest level of service to the City's residents and businesses. The Legislative Platform provides clear direction the City Manager to respond and take actions quickly, under the direction of City Council, as initiatives that impact the City are considered at the regional, state, and federal levels. The City Manager shall coordinate the monitoring of legislative issues that impact the City and ensure that the City takes a position on all applicable proposed regional, state-wide, and national legislation, regulation, and related matters. The City Manager will update the Legislative Platform throughout the year, as necessary, to address and prioritize new issues as they relate to the City or the region. The Legislative Platform does not preclude City Council consideration of additional legislative and regulatory matters arising throughout the year. As necessary, Staff will solicit, City Council authorization to, amend the Legislative Platform to include items not included in the existing Legislative Platform. The City's primary legislative focus includes protecting local government control, maintaining local government revenue, pursuing public security funding, obtaining funding for environmental sustainability, transportation, recreational, technology and public infrastructure improvements. Guiding Principles — City Strategic Plan The Legislative Platform is aligned with the City's five strategic goals. 1. Enhance Customer Service, Engagement, and Communications 2. Support Community Safety and Preparedness 3. Develop as Choice Employer and Workforce 4. Develop Quality Infrastructure and Technology 5. Champion Economic Development and Fiscal Sustainability crry of ELSEGUNDO City Clerk/Electoral Process City of El Segundo supports: • Safeguards ensuring that all eligible voters are provided with the mechanisms to exercise the right to vote. • Transparency, public participation and first amendment rights, while preserving procedures that continue to foster efficient government proceedings. • Efforts to enhance local governments' ability to achieve greater transparency of governmental business by improving the platform in which agencies can publish and advertise notices, resolutions, orders, or other matters required by law. • Measures that preserve the integrity and fundamentals of the Brown Act and oppose measures that would constrain communication among staff and local officials. • Increased local autonomy, protecting privacy and maintaining the City's authority over public records. This includes measures that provide for the recovery of costs with regard to public records requests. • Maximizing the City's ability to efficiently and effectively administer local elections, including programs designed to encourage and increase voter education, registration and voter turn -out. 2020 LEGISLATIVE PLATFORM 2 •t OM OF ELSEGUNDO Community Service City of El Segundo supports: • Funding for the development and rehabilitation of infrastructure in parks, libraries, public right of ways, and similar neighborhood and community serving facilities. • Enhanced California State Library funding and budget • Increased state resources for local arts, recreation, cultural events and library programs. • Expanded state resources for local library, recreation, arts, and culture programs • Funding for ADA facility and park upgrades. • Intellectual Freedom, Privacy, Census 2020, and Net Neutrality • Statewide initiatives for: o Early education o Adult/family literacy o Digital literacy o Career support o Services for vulnerable populations o After-school/summer programs for youth o Other educational and social service programs • Equitable access to library and information services including: o Broadband equity for California communities o eMedia and electronic resources • Enhanced school sites and/or supports education and partnership between cities and school districts. • Increased services and/or funding for at -risk populations, such as the homeless, disabled and other vulnerable populations • Expanded opportunities for healthy "aging in place" options and services for the older adult population 2020 LEGISLATIVE PLATFORM 91 cm OF ELSEGUNDO Economic Development City of El Segundo supports: • Measures that enhance the City's business attraction and retention efforts. • Providing resources and incentives to supports job creation, business attraction, and retention. Emergency Management City of El Segundo supports: ■ Funding that promotes mitigation, preparedness, response, and recovery efforts for manmade and natural disaster hazards. • Funding for disaster relief for all types of natural and manmade disasters. • Efforts to coordinate the development of telecommunications infrastructure within the region for use during large scale emergency situations. • I.C.I. System (Interagency Communications Interoperability System) participation among jurisdictions and funding for equipment and operations. • Funding for the Urban Area Security Initiative (UASI) and other funding initiatives administered by the Department of Homeland Security to enhance the City's ability to respond to regional or national threats. 2020 LEGISLATIVE PLATFORM 4 W ury - ELSEGUNDO Environmental Sustainability City of El Segundo supports: • State bonds, funding, and legislation aimed at improving ocean water quality and reducing ocean pollution, banning new offshore oil or gas drilling or extraction, and funding coastal clean-up and restoration. • Cost-effective, sustainable, and responsible environmental policy and programs in the areas of energy efficiency, greenhouse gases, climate change, potable water, wastewater, solid waste removal and stormwater, among others. • State funding opportunities to assist agencies in meeting sustainability objectives including energy and water efficiencies, active transportation enhancements, connectivity and mobility improvements and carbon sequestration through natural landscape management and protection. • Protecting, preserving and restoring the natural environment where it does not conflict with local control and land use designations. • Creating partnerships among the City, El Segundo Unified School District, businesses, residents, and all other community stakeholders as necessary to achieve a sustainable community. • Proactively addressing climate change and improving air quality. Support funding to foster an environmentally sustainable city, walk -able community that provides ample goods, services and benefits to all residents while respecting the local environment. • Funding for the Los Angeles County Metropolitan Transportation Authority (Metro) and other regional transit authorities to continue to create multi -modal transportation systems that minimize pollution and reduce motor vehicle congestion while ensuring access and mobility for all. 2020 LEGISLATIVE PLATFORM 93 CffY oY ELSEGUNDO Fiscal and Administrative City of El Segundo supports: • Fiscal sustainability and best -practice administrative initiatives to ensure the delivery of unparalleled city services. • Full cost reimbursement to the City for all federal, state and county -mandated programs. • Protect integrity of existing revenue sources for local government. • Efforts to achieve public employee pension reform. • Efforts to maintain and expand the types of municipal investment-grade revenue bonds. City of El Segundo opposes: • Any attempt to eliminate or limit the traditional tax exemption for municipal bonds. • Legislation that makes local agencies more dependent on the State for financial stability and policy direction. • Changes revenue allocations that negatively affect local government, including the redistribution of sales tax, property tax, COPS grants, Proposition 172 funds, gas tax (HUTA), transient occupancy tax (TOT) and vehicle in -lieu fees (VLF). • Effort by the State or Federal government to preempt the City's right to levy and collect taxes, fees and assessments. • Diminishing the City's authority over local taxes and fees. 2020 LEGISLATIVE PLATFORM 92 cm or ELSEGUNDO Human Resources City of El Segundo supports: • Measures that place reasonable parameters over public pension plans, while opposing measures that would eliminate local control over plan specifics. • Managing the rising cost of health insurance and urging officials to fully consider the financial impact on local governments when considering any health care coverage legislation. City of El Segundo opposes: • Measures that mandate upon local governments any additional and costly program for employee benefits without local control. General Government City of El Segundo supports: • Efforts that are consistent with the doctrine of local control especially in the areas of police power, land use planning and public safety. • Enhanced local control of resources and that allows the City to address the needs of its constituents within a framework of regional cooperation. • Preserving local control of short-term rentals and online hotel intermediaries. • The use of federal and state incentives for local government, rather than mandates. • Funding opportunities for public facilities and services including capital improvement projects, public works projects, homeland security, library, parks and social service facilities. City of El Segundo opposes: • State and federal legislation that preempts the City's local authority. • State or federal mandates without the direct or indirect reimbursement for the costs associated with complying with new and/or modified laws, regulations, policies, procedures, permits and/or programs. 2020 LEGISLATIVE PLATFORM 7 95 crry or ELSEGUNDO Planning, Housing and Land Use City of El Segundo supports: • Increased input from municipalities in the development of the Regional Housing Needs Assessment (RHNA). • Flexibility for local jurisdictions to work together to provide housing that counts toward Regional Housing Needs Assessment (RHNA) requirements. • Maintaining local control over medical marijuana dispensaries and upholding cities' ability to regulate and ban dispensaries. • Funding for affordable senior housing opportunities and projects. City of El Segundo opposes: • Limiting the City's ability to condition and deny projects that negatively impact the community. • Overriding the City's adopted zoning ordinances. • Legislation that establishes detrimental, residential rent control restrictions (such as AB 1482) • Legislation that reduces local land -use authority and/or alters local land use zoning designations without approval of local City Council (such as SB 50). 2020 LEGISLATIVE PLATFORM M cry or ELSEGUNDO Public Safety City of El Segundo supports: • Assistance for local police, fire, and homeland security initiatives, and any measures that will help contribute to local public safety. • Strengthening local law enforcement's ability to prevent and fight crime. • Funding and alternative avenues of health care to local first response agencies to adequately address behavioral health issues. + Efforts to reverse all legislation, including AB 109, that created "early release" for low-risk, serious and violent offenders. • Programs for rehabilitation, housing and employment for local and state prisoners. • Strengthening state and regional collaboration to reduce and prevent homelessness as well as programs that provide funding to cities to implement local strategies. • Strengthening efforts to eradicate human trafficking. • Fire prevention and environmental safety legislation and funding. • Legislation that aids paramedics and other emergency medical service practitioners in their ability to be responsive to community needs. • Funding initiatives for Peace Officers Standards and Training (POST) and other law enforcement support organizations. • Upholding local control and preserves a city's "Section 201" and "Section 224" rights to continue to contract for or provide pre -hospital medical care and transport. City of El Segundo opposes: ■ Impeding local law enforcement from addressing crime problems and recovering costs resulting from a crime committed by the guilty party. • Limiting local police departments' ability to collect and utilize asset forfeiture funds for a wide variety of police services. • Modifying existing bail programs that are potentially harmful to El Segundo community. • Expanding "early release" for low-risk, serious and violent offenders. • Expanding the definition of "early release", non -serious crimes, and non-violent crimes. 2020 LEGISLATIVE PLATFORM 97 crrr of ELSEGUNDO Public Safety • Re -categorizing serious crimes as non -serious crimes. Decriminalizing existing crimes in California or reducing the sentences of any offenses, resulting in the release of serious criminals who may further harm the safety of the public and law enforcement personnel. Legislation that requires local Public Safety agencies to take on more services without providing full funding to provide new/enhanced services. 2020 LEGISLATIVE PLATFORM 10 •; cm of ELSEGUNDO Public Works City of El Segundo supports: • Increased funding for maintaining and upgrading the City's major streets, allowing for better traffic flow and user safety. • Funding for transportation infrastructure projects that improve mobility for residents, businesses and visitors. • Expanded transportation funding to encourage use of public transit, alternative fuel vehicles and fleets, pedestrian ways, bikeways, and multi -use trails. • Measures that provide City's fair share of funding from the State's "Cap and Trade" funding sources. • Measures that seek to reevaluate the method and manner in which the state and federal gas taxes are collected and allocated to local jurisdictions to emphasize actual roadway usage (i.e. working/daytime population -based). Efforts to secure the City's fair share of funding from SB 1 revenues to fund local transportation projects. • Working with other agencies in the region to support current state and federal funding levels and encourage increased funding and flexibility in both operating and capital funding for mass transit. • Working with the South Bay Cities Council of Governments and other regional agencies to support legislation that provides incentives for the improvement and/or development of regional transportation corridors. City of El Segundo opposes: • Efforts to remove local regulatory authority on wireless infrastructure development. • Any legislation that threatens to withhold State -allocated funds reserved for roadway or other public infrastructure maintenance and/or improvements if certain actions are not taken by the local jurisdiction, such as construction of housing or homeless shelters. 2020 LEGISLATIVE PLATFORM 11 •• EL SEGUNDO CITY COUNCIL AGENDA STATEMENT AGENDA DESCRIPTION: MEETING DATE: February 4, 2020 AGENDA HEADING: Staff Presentation Receive and file Fiscal Year End (FYE) 2018-19 Unaudited Financial Review of the General Fund and Enterprise Funds. (Fiscal Impact: none) RECOMMENDED COUNCIL ACTION: (1) Receive and File FYE 2018-19 Unaudited Financial Report. ATTACHED SUPPORTING DOCUMENTS: None FISCAL IMPACT: None Amount Budgeted: $0 Additional Appropriation: N/A Account Number(s): None STRATEGIC PLAN: Goal: 5(b) Champion Economic Development and Fiscal Sustainability: El Segundo approaches its work in a financially disciplined and responsible way Objective: 1 The City will maintain a structurally balanced budget 2 The City will maintain a stable, efficient, and transparent financial environment ORIGINATED BY: Juliana Demers, Business Services Manager & Dave Davis, Finance Manager REVIEWED BY: Joseph Lillio, Director of Finance APPROVED BY: Scott Mitnick, City Manager ?V ai lv, BACKGROUND AND DISCUSSION: Fiscal Year-end (FYE) 2018-2019 General Fund Year -End Results FYE 2018-19 General Fund operations resulted in total revenues (unaudited) of $78,826,161 compared to the original adopted budget of $74,565,624, and year-end estimate of $75,559,271. Total General Fund expenditures (unaudited) were $77,880,492, compared to the adopted budget of $79,081,046, and year-end estimate of $77,840,000. The additional revenues and the reduction in expenditures resulted in an increase to the beginning General Fund balance at October 1, 2019 of approximately $3.2 million as reflected in Table 3. 1 100 rA Table 1 categorizes the various General Fund revenue sources and compares the FY 2018-19 adopted budget to the estimated year-end actuals (unaudited): Table 1— FY 2018-19 Year-end Revenues — Budget v. Actual (unaudited) 1 Transient 0ccupancy ( VO T) FY 2018-19FY 14,500,000 $ 98,200 O_W 2018-19 13,023,091 11,900,400 1,123,091 2e Year -End Actual } 3 Business License '%o Change 11,800,000 Budget (unaudited) - - 4 Property Tax 1 Transient 0ccupancy ( VO T) $ 14,598,200 $ 14,500,000 $ 98,200 O_W 2 Sales & Use Tax 13,023,091 11,900,400 1,123,091 9.44%0 3 Business License 12,225.018 11,800,000 425,018 3.60% 4 Property Tax 8,458,829 8,057,164 411,665 5.11% 5 Tax Resolution Agr•eerrient 6,171,627 5,800,000 371,627 6.41% 6 Utility Umes 3; axon (UUT) 5,960,961 5,010,000 950,961 18.98% 7 Charges for Services ',.3o6,4ZO 5,393,625 {27,205) -0.50% 8 Other " 5,278,843 4,359,747 909,096 20.8.0% 9 Franchise Tax 2,709,760 ;, UO,uu) (1,190,240) -30.52% 10 License & Permits 2,322,187 1,668,388 653,799 39.19% 12 .Cogeneration Electric 1,460,258 925.000 535,258 57.87% 11 Interest on Investments 674,417 824,000ly91�1�) -18.15% 13 Fines & Forfeitures 566,550 317,700 4i4, 50 78.33% Total Gvnead GW Revenues, C 1i`'i� 7;426'.1r+1 "4ki5,624 4,360,537 6% Transfers In - - Total GOOMA &WIMORM 578,826,161 $74,465,624 $4,360,537 6 As noted in the table above, the major changes to estimates in revenues are as follows: • T.O.T. — Revenues came in as budgeted. • Sales & Use Tax — Despite a slow start, sales tax revenues exceeded budget almost 10% due to catch up on late payments from last year's CDTFA system upgrade delays. There was a one-time $1 million catch-up payment to the City received in late 2019. ■ Probertv Tax — An increase in property values and a change in ownership of properties has contributed to a higher than anticipated property tax revenue. • Franchise Tax — This revenue source is primarily made up of the annual payment received by Southern California Edison (SCE) and The Gas Co. The payment from SCE was lower than expected in the adopted budget. • License & Permits --- The strong economy allowed for increased development activity including several tenant improvement projects that allowed for higher revenues on building permits in general. • Coeeneration Electric — Higher than anticipated production in power plant operations allowed for almost 60% additional revenue than originally forecasted. • Fines & Forfeitures — Increased parking and code enforcement has resulted in additional fines revenues. 101 Table 2: General Fund expenditure sources compares the FY 2018-19 adopted budget to the year-end actuals (unaudited): 1 Police (includes RCC - $1.4M) $22,970,547 $21,746,192 -,'1,224,355) 106% 2 Fire 16,597,349 15,964,187 (633,162) 104% 3 Administrative Support (CMO, City Clerk, HR, & 8,772,216 8,726,622 (45,594) 101% Finance) 4 Public Works 7,361,602 8,507,761 1,146,159 87% 5 Non -departmental 6,700,397 8,251,373 1,550,976 81% 6 Recreation and Parks 6,664,557 7,272,244 607,687 92% 7 Planning Building Safety 2,758,346 2,830,338 71,992 97% 8 Library 2,439,735 2,363,788 (75,947) 103% 9 Elected Officials 265,743 288,541 22,798 92% 10 Expenditures 74,530,492 75,951,046 1,420,554 98% 11 Transfers Out 3,350,000 3,130,000 220,000 107% 12 Total General Fund $77,880,492 $79,081,046 $1,200,554 98% Expenditures As noted in the table above, the major changes to estimates in expenditures are as follows: • Police — An increase in salaries and benefits due to the new MOU approved in November 2018. • Fire — An increase in salaries and benefits due to the new MOU approved in November 2018. • Public Works — Under budget primarily due to multiple vacancies throughout the year. • Non -departmental — Under budget due to a combination of several factors: a reduction in accrued vacation/sick payouts, the group health insurance was $250k under budget, and a reduction in credit card fees (due to the credit card service fee passed by City Council). • Recreation & Parks — Under budget primarily due to multiple vacancies throughout the year. Table 3 represents the City's General Fund balance and reserves. The fund balance is the amount of financial resources immediately available for use. The City also has a Council policy to maintain a 17% general fund financial reserve for the current fiscal year and 20% reserve for the long-term goal. The additional fund balance that is not assigned towards the required 17% reserve is referred to as "unassigned" fund balance. These unassigned funds can be used at the discretion of City Council. Table 3: Revised General Fund balance for Fiscal Year-end 2018-19 & FY 2019-20 3 102 Year-end estimate Actuals (Unaudited) Beginning Unassigned Fund Balance at October 1, 2018 (based on FY 2017-18 audited CAFR) $21,064,124 $21,064,124 Plus revenues for FY 2018-19 75,559,271 78,826,161 Less revised estimated year-end expenditures for FY 2018-19 (includes transfers out) (77,840,000) (77,880,492) Beginning Fund Balance at October 1, 2019 18,783,395 22,009,793 Plus estimated revenues for FY 2019-20 76,510,208 76,510,208 Less estimated expenditures for FY 2019-20 (includes transfer out to CIP of $2,470,000) (80,428,539) (80,428,539) Less Continued Appropriations (442,528) Estimated Ending Unassigned Fund Balance at :September 30, 2020 14,865,064 17,648,934 17% General Fund Reserve 13,252,952 13,328,181 Over/(Under) reserve policy at September 30, 2020 1,612,112 4,320,753 Equivalent to 2% of General Fund reserves (transfer Funds to the Pension Trust) (1,559,000) (1,559,000)_ Discussion on Enterprise Funds Water Utility Enterprise Fund This year's revenues were on 20% higher than budgeted. Staff has performed several account audits and corrected charge tables to existent accounts. In addition, several new accounts were added to the database as a result of new commercial and residential developments throughout the City. Expenses have come in 8% below budget due to salary savings and lower than anticipated spending on capital projects. There are two pending large capital projects: water infrastructure replacement and AMR meters that total $3.4 million. Revenues: udg FY 2018-19 Actuals (unaudited) $37,220,048 Expenditures: ITN--19Sudge643,150 FY 2018-19 Actuals (unaudited) $28,440,802 4 103 Wastewater (Sewer) Utility Enterprise Fund Revenues in the Sewer Utility Fund are 33% higher than budgeted. Staff has performed several account audits and corrected charge tables to existent accounts. In addition, several new accounts were added to the database as a result of new commercial and residential developments throughout the City. Expenditures were 17% lower than budgeted due to lower anticipated spending on contractual services and capital projects. There are five pending large capital projects: Lifeguard force -main & pump station, annual sewer main repair, sewer pump station #1, rehabilitation of pump stations and AMR meters for a total of $7.6 million. Revenues: FY 2018-19 Actuals (unaudited) $5,075,288 Expenditures: FY 2018-19" FY 2018-19 Actuals (unaudited) The Golf Course Fund revenues have come 13% higher than budgeted as a result of better utilization of the facilities for special events. Expenditures have been on track with the budget with 87% of budgeted expenditures expensed. The FY 2018-19 revenues exceeded expenses by $173,728. Revenues: II FY 2018-19 Bud FY 2018-19 Actuals (unaudited) Expenditures: Conclusion Once the FY 2018-19 financial audit is complete, the audited results will be presented to City Council in March/April 2020. The mid -year review of the current budget will take place during the first City Council meeting of May 2020. During the mid -year review, staff will present to Council strategic uses for the unassigned General Fund reserves estimated at $2.7 million that fall in line with the City's adopted Strategic Plan. 5 104 EL SEGUNDO CITY COUNCIL MEETING DATE: February 4, 2020 AGENDA STATEMENT AGENDA HEADING: Staff Presentation AGENDA DESCRIPTION: Approval of new process to evaluate Community Benefit Plans in Smoky Hollow Specific Plan area prior to consideration by Planning Commission and City Council RECOMMENDED COUNCIL ACTION: 1. Waive second reading and adopt Resolution approving the Smoky Hollow Community Benefit Plan worksheets ATTACHED SUPPORTING DOCUMENTS: 1. Smoky Hollow Community Benefits worksheets 2. Smoky Hollow Specific Plan excepts: a. Project review and approval process b. Land Use Objectives c. Design Guidelines d. Public realm design guidelines 3. Draft resolution FISCAL IMPACT: None. Staff time is either already budgeted or will be covered by reimbursements from applicants. Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A PREPARED BY: Gregg McClain, Planning Manager REVIEWED BY: Sam Lee, Planning and Building Safety 7rector APPROVED BY: Scott Mitnick, City Manager1 � � c; s-m� i. Chapter 4 of the Smoky Hollow Specific Plan (SHSP) allows property owners and developers to submit Community Benefit Plans (CBPs) to the City outlining specific benefits in exchange for approval of increases in development intensity, height, or other special exceptions. CBPs are divided into two levels of review depending on the types of exceptions requested. Tier 1 is for minor exceptions and are approved by the Planning Commission. Tier 2 are more substantial exceptions and are approved by the City Council with Planning Commission recommendation. A minimal requirement for consideration of a CBP at either level is that the proposed community benefits provide "exemplary project and/or streetscape design." (SHSP, p 61) This is clearly one of several subjective standards that the Planning Commission and City Council can apply when evaluating CBPs. With all land use applications, staff will evaluate the proposals and make a recommendation to the decision making bodies. The design criteria in the Specific Plan are intentionally open-ended to allow applicants flexibility in their proposals. The proposed evaluation criteria will enable staff to objectively rate each proposal and determine whether or not the basic community benefits components are present prior to advancing the project to Planning Commission and City Council. For this reason, staff developed a tool to objectively screen CBP applications and which will serve as the basis for recommendations. IV 105 The attached worksheets are intended for staff and applicants to evaluate in great detail the benefits and costs associated with the application request. The worksheets are structured as a linear process, which is explained below. TIER I COMMUNITY BENEFIT PLANS Tier I CBPs are best described as everything that does not qualify for Tier II. Tier II is for any request seeking a floor area ratio (FAR) greater than 1.5, building height over 35 feet, or deviation from three or more standards aside from height and FAR. Every case that does not cross at least one of those three thresholds is handled as a Tier I CBP. First Finding The proposed height, intensity, or deviation from the development standards would not be detrimental to the public health, safety or welfare, or materially injurious to properties or improvements in the vicinity. On the Findings Worksheet, Step 1 identifies the first necessary finding for approval of a CBP. Essentially it states that the benefit conferred on the property is not detrimental to the public health safety and welfare. Staff almost always determines that this finding can be made, as this particular finding is attached to most discretionary approvals throughout the state. In the rare case where staff does not think the finding is met the process stops, allowing the applicant to redesign or appeal staff's determination. If staff thinks the finding can be made, the process moves on to Step 2 and staff will recommend this finding as met to the decision makers. Ultimately, the Planning Commission or City Council will decide if the finding is supported by the evidence, of which staff's recommendation is one part. Second Finding The proposed community benefits provide exemplary project and/or streetscape design. Step 2 involves making the finding that the proposed community benefits contribute to an exemplary project. As noted above, this is clearly a subjective call of the decision making body, but staff is expected to make a recommendation nonetheless. To avoid applying subjectivity at the staff level, we devised a quantitative way to credibly make a recommendation that the benefits are exemplary. The Smoky Hollow Specific Plan discusses design and devotes several pages to design guidelines. The design guidelines are sorted into five categories, which are 1) Enhance building character; 2) Facilitate gathering; 3) Incorporate landscape and environmental design; 4) Encourage connectivity; and 5) Design for signage, way -finding, and public art. Each category offer between one and twelve examples, but other design solutions within these broad categories are encouraged in the Specific Plan. Altogether there are 32 design guidelines in the plan. Staff's approach was to select a number of these that must be incorporated into the project as a proxy for recommending the finding is met. The number will be known to the public and designers can use the design guidelines to add features to project to improve their chances of a favorable outcome at a public hearing. The number settled upon was 17, which was derived by taking one half of the 2 106 32 criteria and adding one more. Based on the preliminary examination of several CBP projects that were coming in, achieving 17 or more seemed to be a reasonably achievable yet high standard of design. Third Finding The proposed community benefit directly implements objective of the Specific Plan. Step 3 requires that the benefits proposed directly implement objectives of the specific plan. The Smoky Hollow plan does not have a table listing objectives, but throughout the text several objectives are elucidated. For example, on page 29 there is an objective that says: Limit non- supportive land uses that dilute the area's reputation as a creative and cutting-edge business community. To support any recommendation related to this finding staff will seek evidence in the specific plan that addresses the type of benefits or land uses proposed. With this information the Planning Commission and City Council will be able to make the third finding if they so choose. If all three findings are thought to be met, staff will forward the CBP application to the Planning Commission with a recommendation of approval. If the Planning Commission, after evaluating the evidence agree with staff, the project is approved by resolution and Tier I CBP process is finished. TIER II COMMUNITY BENEFIT PLANS When height, FAR or multiple exceptions are requested, the CBP will be evaluated by both the Planning Commission and the City Council and will involve two additional steps. In order to facilitate the analysis required for Tier II review, the applicant must agree to reimburse the city for costs associated with hiring a consultant to evaluate the financial aspects of the benefits transaction. The City currently has three qualified consultants that are prepared to make the needed report, and work will be distributed based on the most responsive proposal for each project based on cost, time to complete, and past performance. All Tier II CBP must be able to support making the three findings of Tier I (Steps 1 through 3). The next step, Step 4, has the finding that the community benefits proposed do not principally benefit the project or its occupants. Rather than make a recommendation on this finding immediately, staff built into the analysis of Step 5 a methodology that will support this recommendation. Fourth and Fifth Findings :1T11 The value of the community benefits bear a relationship to the value generated by the project. The community benefits proposed do not principally benefit the project or occupant of the project, but rather provide a district or area -wide benefit to the larger Smoky Hollow Plan area. 107 Step 5 addresses the finding that the value of the community benefits bear a relationship to the value generated by the project. In other words, without specifying a particular ratio, the finding requires that the value gained by the community is appropriately balanced with the additional value the property gains through relief of development standards. So if the granting of additional height allows the applicant to build another 5,000 square feet of usable space, for example, that additional space has value based on its rent generating capacity. It is not straight forward though, it depends on the location within the development, ceiling heights, access to amenities, and dozens of other possible factors. This sort of analysis is quantifiable, but beyond the capabilities of staff. This is why the City has economic consultants involved. A commercial real estate broker with local knowledge may come up with the same approximate value, but to avoid possible conflicts of interest we intend to use consultants for this work. The other side of the equation is also needing to be quantified so that a meaningful comparison to the community benefits is possible. For example, if a developer or property owner builds a small private park on their property, but makes it continuously available to the public, any portion of the land set aside for this park has lost opportunities to generate rent. Again, there are many factors beyond just the cost of construction and maintenance that go into calculating a value, and the City's consultant will use input from their experience as well as estimates and receipts from the applicant to derive this number. With the economic analysis in hand the calculations in Step 5 can be done. Community Value of Pr000sed Benefits Step 5 starts with eight lines that require input. Each community benefit is sorted into the same five categories as the design standards in the specific plan, plus three additional areas that are based on objectives in the specific plan but not part of the design guidelines. The monetary values associated with each benefit category, as determined by the economist, are input into the beige boxes. Each line is calculated differently from this point to determine the value of the benefits from the perspective of the community. These numbers will appear in the grey boxes on the right side of the worksheet. The methodology for deriving the community value of each proposed benefit is described next. Architecture Group Line 1 is Group A, Enhance building character, abbreviated as "Architecture" on the worksheet. The value as determined by our consultant is in the beige box , but determining the community value for the grey box requires a tally of design standards marked "yes" on the Tabulation Worksheet. One point is granted for every design guideline met in Group A. If the tabulation exceeds half of available options, in this case seven or more, the number over half is multiplied by 8.33%, and that number is multiplied by the value in the beige box. The result will appear in the grey box. 8.33% is the proportionate value of each criteria in that category. For group A there are 12 criteria and 8.33% is the equivalent of 1/12. So each criteria tabulated on the Tabulation Worksheet could add 1/12 of the value of the benefit into the grey box. However, since a similar method was applied to determine the second finding related to exemplary projects, the first six tabulated points are not counted. Therefore, the maximum possible community value is one half of the value based on cost because 12 of 12 are tabulated, first 6 removed, that leaves 6 of 12 remaining, or 6/12, which can be reduced to one half. 4 108 If less than seven are tabulated in the category, the calculation will be based on 0/12, or zero, and no value for that benefit is recorded in the grey box. This is for two reasons, the first, going back to the fourth finding concerning benefits principally to the applicant. By requiring applicants to overachieve in a category to even have the benefits calculated, it is assumed that community comes out ahead. In other words, in the example above, the community enjoys the benefit of 12 criteria while the applicant only benefits from six. Open Space, Landscaping, and Other Groups The following two lines and the line for Group E follow the same procedure but adjusted to the number of available criteria in the category. For Group E, if public art is required by another ordinance on a particular project, only that portion exceeding the minimum required cost or donation to the Arts Fund will be used for the worksheet calculations. Connectivity Group Group D has only one criteria, so a different approach is required. Group D counts bicycle parking spaces that take up approximately 1/16 the space of an automobile parking space. The in -lieu parking ordinance set the in lieu fee at $28,000 per space. Divided that number by 16 is how a value of $1,750 per space was derived. However, since bicycle parking is required by the ESMC anyway, the worksheet only counts bike parking over the required number. Any other benefits that address connectivity exclusively, such as providing a walkway through the property that connects two "destinations" will be recommended at full value. Coffee Shops and Cafes The next line addresses cafes and coffee shops because these are addressed in the specific plan as desirable objectives yet do not fit a design category. The value that the community gets from a local coffee shop or cafe is directly related to the distance of the next similar use. For this category the community benefit grows from 5% to 20% based on this distance. A coffee shop that is on the same block as another will get 5% of the value, but if the nearest coffee shop is 1/2 mile away, they get 20% credit. There are also 10% and 15% values associates with intermediary distances. Public Realm Improvements The next two lines deal with benefits in the public realm, meaning sidewalks and streets primarily. These are considered to be whole to the benefit of the community and also highly desirable to the City. Therefore, they are assigned values above the actual costs to implement as incentive to developers. Undergrounding utilities is valued at 130% of cost. This requires the removal of a pole since undergrounding utilities to the property is already required. The other is approved public infrastructure, meaning improvements described in the specific plan. These are valued at 110%. Public infrastructure is complicated because the timing has to be coordinated carefully with the Public Works Department. In order to not create chaos, the City is setting up a fund that an applicant can pay into rather than perform the actual public works improvements. As money accumulates it will be added to the CIP process but strictly earmarked for improvements with the boundaries of the Smoky Hollow Specific Plan. 109 One additional way of ensuring that benefits are largely to the community rather than the applicant is a requirement that at least 10% of the value added to the applicant's property be allocated to the public improvements category when a project is values over $2 million. Unanticipated Benefit Proposals When the Specific Plan was written, staff envisioned creative benefits being proposed that we could not predict or foresee. These benefits are evaluated by our consultant but the value is only noted on the worksheet, it does not factor into any of the calculations. This is information that the City Council may choose to consider when deciding if a CBP is appropriate. Relationship between Benefits to AvDlieant and Benefits to Community The next portion of the worksheet is intended to address the relationship between community benefits and value added to the applicant's property. Staff determined that, in order for us to make a recommendation to approve a CBP, the appropriate minimum value of community benefits should be 30% of the value added to the applicant's property. This number was thought to be not so low as to be perceived as a give-away to developers, but not so high as to create a disincentive to apply for a CBP. How the Council or Commissioners feel about this ratio need not be the same as staff, 30% is just the threshold that staff will use to make a recommendation that the fifth finding can be met. The City Council may approve a CBP if all the finding are met, but are not obligated to approve based on staff s recommendation concerning findings. The Council will weigh the totality of evidence and decide based on their majority opinion that the benefits offered are appropriate in scale, type, and character, of which staff s recommendations will be one part. CONCLUSION Once implemented, scoring CBPs with the worksheets will be an objective exercise for staff to determine if a CBP qualifies for a positive recommendation. Additionally, implementation of the design criteria needed to score highly on the worksheet will lead to more quality projects in Smoky Hollow—at least from those projects that will be larger or taller than the standard's otherwise required. Lastly, the worksheets will be available to the public, so developers and property owners seeking CBPs will understand exactly what options they have to move their project quickly to a public hearing. 6 110 SMOKY HOLLOW COMMUNITY BENEFITS TABULATION WORKSHEET Project Name: Group A Enhance Building_ Character (minimum 4 required) yes no n/a criteria Build on the quality industrial character a Convey a sense of old and new P Build upon existing context Conserve and retain the character -defining features Encourage additions that complement existing character -defining features v Incorporate small, medium, and large scales v Emphasize design at the pedestrian level a` Specify 360° architecture E E Enhance entry expression Encourage the use of roll -up doors and sliding walls at street frontages Orient secondary entries to alleys Incorporate different materials, colors, and textures Group B Facili':ate Gathering (minimum 2 required) yes no n/a criteria a Form an active street wall o Provide street corner plazas rDevelop outdoor gathering spaces Provide alley -facing gathering spaces v Provide ease of access v Enhance surface parking m Use enduring, quality paving materials E E Provide street furniture Use exterior lighting to accentuate safety and design Provide Wi-Fi hotspots Group C tncor )orale Landscape and Environmental Design (minimum 3 required) yes no n/a criteria v Design layered and lush landscaping Q� Select drought -tolerant and native plants N i Utilize planters and pots to provide greenery E j improve landscaping in parking areas g f Use fences and walls as an extension of the architecture 21 Utilize natural light Group D Encourage Connectivity yes no I n/a lcrite,,i3 Install bike facilities If "yes," total bike storage spaces Provided:" Required:LJJ Group E Design for Signag, Way -Finding, and Public Art Yes no n/a criteria Design signs as an integral component Incorporate way -finding through integral design Encourage public art 111 56 SMOKY HOLLOW COMMUNITY BENEFITS FINDINGS WORKSHEET Project Name: Step 1 findin flThe proposed building height, intensity, or deviation from the development standards would not be detrimental to the public health, safety or -> If finding is met, proceed to Step 2. If finding cannot be met, stop, the project does not qualify. Step 2 finding:lThe proposed community benefits provide exemplary project and/or streetscape design Number of criteria this project incorporates: -> If 17 or more, proceed to Step 3, otherwise stop, the project does not qualify. Step 3 findinflThe proposed community benefit directly Impiiments objectives of the specific plan. 4 If none of the proposed community bnefits meet this finding, stop, project does not qualify. If at least one proposed community benefit meets this finding and project does not qualify for Tier 2, proceed to Planning Commission If at least one proposed community benefit meets this finding and project qualifies for Tier 2, proceed to Step 4 Only Tier 2 projects must meet Findings 4 & 5 Step 4 findir4:lThe community benefits proposed do not principally benefit the project or occupants of the project, but rather provides a distinct or area -wide -3 If finding is met, proceed to Step 5. If finding cannot be met, stop, the project does not qualify. Step 5 finding:IThe value of the community benefits bear a relationship to the value generated by the project. Sums of developer costs for qualified proposed community benefits by groups: Community value of proposed Improvements; Group A: Architecture I $ multiply by (Number of met criteria in Group A > 6 * 8.33%) = I S Group B: Open Space I $ multiply by (Number of met criteria in Group B > 5 * 10%) = I $ E Group C: Landscaping $ multiply by (Number of met criteria in Group C > 3 * 16.67%) = I $ a e Group D: Connectivity $ multiply by (Number of Bike spaces > 2 * $1,750) - $ Group E: Other S multiply by (Number of met criteria inGroupA * 33.33%) _ $ Cafes and coffee shops $ distance to nearest similar? I Select one - $ E Undergrounding utilities $ multiply by 130% a v Approved public Infrastructure I $ multiply by 110% = t $ Projects with more $2 million or more value added must contribute at least 10% of value added to public infrastructure Other proposed benefits Is - I <-These benefits are not considered for qualifying purposes unless accepted by City Council Total cost for community benefits to developer 1 $ - Estimated added project value I $ Community value of proposed benefits I $ Community value share of added value j 4 If CV/AV is <30%, recommend additional community benefits and recalculate. 4 If CV/AV is >30%, go to Planning Commission for recommendation to City Council 112 57 Specific Plan Process + Administration El Segundo Art Walk D. Change of Occupancy. When all or a portion of a building is modified in such a manner, including how it is used, such that the Building Code occupancy group is changed, parking, as required by this Specific Plan, shall be provided for the entire building and all other buildings on the same lot. 4.4.5 Nonconforming Curb Cuts Existing nonconforming curb cuts along street frontages shall be removed subject to the following provisions: A. New Buildings. When new buildings are constructed on a lot, any nonconforming curb cuts on the property shall be removed. B. Additions to Buildings. When additions to structures add 50 percent or more of the gross floor area of existing structures on a lot, all nonconforming curb cuts shall be removed. 4.5 PROJECT REVIEW AND APPROVAL PROCESS All projects proposed within the Smoky Hollow Specific Plan area shall substantially conform with the provisions of this Specific Plan. 4.5.1 Administratiue Adjustments The Administrative Adjustment review process allows limited exceptions to certain development standards. In addition to the instances allowed by ESMC Section 15-24-1 (Adjustments), a property owner or authorized City of El Segundo \ SMOKY HOLLOW SPECIFIC PLAN \ 101 58 agent of the property owner may file an Administrative Adjustment application whenever any one or the following deviations from the provisions of this Specific Plan is proposed: A. Condition of Approval. If an Administrative Adjustment process is not already included in an approved conditional use permit or administrative use permit, a minor deviation from a condition of approval. B. Development Standards. A deviation in any numeric development standard, excluding Lhe number of required parking spaces, density, height, or floor area ratio, not exceeding 10 percent... C. Curb Cuts for Additions, A deviation from the standard required by Section 4.4.5.13 (Additions to Buildings). Findings and required notice for Administrative Adjustments shall comply with ESMC Chapter 15-24 (Adjusti-nents). 4.5.2 Community Benefits Plan Community benefits are based on the principle that in exchange for allowing incremental increases in development intensity, the community should, in return, receive certain benefits, including beneficial design features such as publicly accessible open space and other development requirements that serve the community's core needs. Any project in Smoky Hollow proposing a deviation from development standards beyond the minor deviations allowed by Section 4.5.1 Administrative Adjustment shall submit a Community Benefits Plan for review and approval by the Director. The Community Benefits Plan shall outline the request for flexibility from strict interpretation of the development standards and regulations or this Specific Plan, as well as the proposed public amenities, features, and improvements prioritized in this Specific Plan that would be provided. Examples of potential community benefits include, but are not limited to, publicly accessible open space, publicly accessible parking, enhanced accessibility improvements, and implementation and/or funding of streetscape improvements identified in this Specific Plan. See Table 4-1: Community Benefits Plan for a description of the process and requirements for Community Benefits Tiers I and II. 102 / SMOKY HOLLOW SPECIFIC PLAN / City of EI Segundo 4.6 APPEALS All appeals pertaining to the Smoky Hollow Specific plan shall be conducted in accordance with the provisions of SSMC Chapter 15-25. 4.7 SPECIFIC PLAN MODIFICATIONS AND AMENDMENTS Modifications to the text or exhibits of this Specific Plan may be warranted in the future to accommodate unforeseen conditions or events. The City will process revisions pursuant Lo California Government Code Section 65450, et seq. All Specific Plan amendments shall be found consistent with the EI Segundo General Plan in compliance with Government Code Section 65454. The Specific Plan may be amended as often as deemed necessary by the City Council in compliance with Government Code Section 65453. 59 Table 4-1: Community Benefits Plan Community Planning Projects that include any of the following Benefits Tier I Commission components shall be considered under the Tier I review process: A. FAR deviation up to 1.5 B. One or more deviations to standards (neither of which is height or FAR) that exceed the minor deviation threshold (10%) allowed by Section 4.5.1 Administrative Adjustment Community City Council Projects that include any of the following Benefits Tier II components shall be considered under the Tier II review process: A. Building height deviation up to 50 feet B. FAR > 1.5 C. Three or more deviations to standards (one of which is height or FAR) that exceed the minor deviation threshold (10%) allowed by Section 4.5.1 Administrative Adjustment Specific Plan Process + Administration A Community Benefits Plan for Tier I may be approved if the following findings are made: A. The proposed additional building height, intensity, or deviation from development standards would not be detrimental to the public health, safety or welfare, or materially injurious to properties or improvements in the vicinity; B. The proposed community benefit provides exemplary project and/or streetscape design; and C. The proposed community benefit directly implements objectives of the Specific Plan. A Community Benefits Plan for Tier II may be approved if the following findings are made: A. All findings In Tier I; and B. The value of the community benefits bear a relationship to the value generated by the project; and C. The community benefits proposed do not principally benefit the project or occupants of the project, but rather provide a district or area -wide benefit to the larger Smoky Hollow Plan -area. City of El Segundo \ SMOKY HOLLOW SPECIFIC PLAN \ 103 60 2.2 LAND USE REGULATIONS ► 2.2.1 Land Use Objectives These land use objectives are broad policy statements intended to guide land use decision- making; ► Encourage commercial and industrial development that promotes new and established businesses and sustains economic growth while also preserving Smoky Hollow's postwar industrial character, history, authenticity, and fine- grained architectural scale. ► Encourage the integration of everyday uses that serve the Smoky Hollow district without unduly competing with the retail activity of Main Street and surrounding districts. ► ► Limit non -supportive land uses that dilute the area's reputation as a creative and cutting-edge business community. 2.2.2 Zoning Districts To identify specific areas for certain allowed uses and development standards, the Specific Plan establishes four zoning districts (see Figure 2-1: Zoning Districts). Private Realm Strategies The purpose of the Smoky Hollow West (SH -W) zoning district is to encourage a range of small business and incubator industrial uses, including light industrial activities and research, creative office, and technology uses. The Smoky Hollow East (SH -E) zoning district provides a transitional land use area between higher -intensity office uses east of Sepulveda Boulevard and the smaller, single -parcel industrial and creative businesses of the western portion of the Smoky Hollow area. The SH -E zoning district accommodates development of incubator industrial, research, and technology uses; medium-sized light industrial and manufacturing; and creative office activities. The Public Facilities (PF) zoning district designates property for public uses necessary to support community needs, such as libraries, fire stations, schools, and utilities. ■ The Parking (P) zoning district identifies land that is currently used or expected to be used as a parking facility either as surface lots or parking structures. City of EI Segundo \ SMOKY HOLLOW SPECIFIC PLAN \ 29 61 U R BA N D E G N GUIDELINES HOW TO USE THE SMOKY HOLLOW DESIGN GUIDELINES This section presents guidelines to assist applicants in developing high-quality building rehabilitation, additions, and new construction projects in Smoky Hollow. Guideline concepts are noted over photographic examples of project types; these concepts are further described in the written design guidelines that follow the photographic examples. Applicants and their design teams should utilize the following design guidelines to the maximum extent for all construction projects The design guidelines are organized into five key themes: ► Erhance Building Character ► EaciLtate Gathering ► Provde Landscape ► Encourage Connectivity ► Desig- for Signage. \,Vayfind ng. and Public Art Each theme is represented by a color - and individual guidelines by an icon - to visually cross-reference the themes and ideas of the guidelines to the illustrative examples shown on the previous pages. Figure 2-4: Design for Adaptive Reuse may° lug" -: Conserve & Retain -- 1 =+ `Convey a Sense of Old &New r r, Fences and Walls as an Extension of the Architecture Develop Outdoor Gathering Spaces �M— Select Drought -Tolerant and Native Plai a 50 / S',•ioi<� Ho�LO�ni S�ECIGIC Pva�i City of El Segundo 63 Figure 2-5: Design for Infill Buildings Utilize Natural Light Mal f Design Creative Signs Private Realm Strategies i Build on the Industrial Character .. Enhance Parking Surfaces City of El Segundo \ SMOKY HOLLOW SPECIFIC PLAN \ 51 64 N O Figure 2-6: Design for Building Additions 52 / SMOKY HOLLOW SPECIFIC PLAN / City of El Segundo 65 Private Realm Strategies Figure 2-7: Design for Campus Projects City of EI Segundo \ SMOKY HOLLOW SPECIFIC PLAN \ 53 66 N N Figure 2-8: Design for Street and Sidewalk Frontages i I 54 / SMOKY HOLLOW SPECIFIC PLAN / City of El Segundo �i Prwirio C+rcc+ Gi irnifi arc 67 N W Private Realm Strategies Figure 2-9: Design for Street Corners City of El Segundo \ SMOKY HOLLOW SPECIFIC PLAN \ 55 68 Figure 2-10: Design for Alleyways ft M, M, � sto Alleys d Plant Pots 56 / SMOKY HOLLOW SPECIFIC PLAN / City of El Segundo Design Creative Signs U Provide L Specify 360° Architecture acing Gathering Spaces e N Cn SMOKY HOLLOW DESIGN GUIDELINES Not all of the design guidelines will be applicable to each project, but each project team should be able to explain how the guidelines shaped their project design and work with City staff to incorporate as many of the ideas as possible. Enhance Building Character Build on the quality industrial character of architecture currently in Smoky Hollow. j Convey a sense of old and new through conservation of existing materials and details and selection of new building components that complement existing conditions without mimicking an older architectural character. Build upon existing context through use of similar forms, heights, proportions, building materials, and details observed in the surrounds. Private Realm Strategies Conserve and retain the character - defining features of an existing building; minimize the removal of older components, materials, and details. Repair such features rather than replace them, to the maximum extent feasible. 0 Encourage additions that complement existing character -defining features and are differentiated and secondary to the bulk and massing of existing buildings. Incorporate small, medium, and large scales through design of differentiated massing and a variety of components, proportions, and details. Emphasize design at the pedestrian level through expressed forms, shapes, masses, materials, and details at first - floor frontages. Q Specify 3600 architecture through extension of the character -defining elements and materials, level of detail, and architectural consistency at all building facades. City of El Segundo \ SMOKY HOLLOW SPECIFIC PLAN \ 57 70 Enhance entry expression through use of color, forms, materials, details, orientation to sidewalks, landscaping, and place -making to create a sense of arrival. Encourage the use of roll -up doors and sliding walls at street frontages to add visual interest at the pedestrian level and enhance indoor -outdoor interactions. 43 Orient secondary entries to alleys to create a sense of arrival and increase pedestrian presence in alleys. Is Incorporate different materials, colors, and textures at a building's exterior to create visual interest, avoid monotonous or repetitive building frontages. Facilitate Gathering .,P Form an active street wall through design of building frontages with material and detail interest at or near sidewalks and use of sidewalk - oriented entries. Provide street corner plazas through setbacks from street corners or through conversion of front yard surface parking ® Develop outdoor gathering spaces at entries, along sidewalks, at patios, and on rooftops to invite activity. 0 Provide alley -facing gathering spaces through setbacks and modulations at rear property lines that invite safe use and activity. Provide ease of access along and across sites through leveling outdoor and indoor height differences, provision of accessible ramps and handrails, removal of obstacles on sidewalks, and minimization of curb cuts. Enhance surface parking through use of enduring quality paving materials that create visual interest; use permeable paving materials consistent with City building codes. ® Use enduring, quality paving materials or street painting to realize visual interest and differentiate the defined 58 / SMOKY HOLLOW SPECIFIC PLAN / City of El Segundo pedestrian zone from traffic lanes. QProvide street furniture of enduring quality and aesthetic value; examples include benches, information posts, trash cans, etc. Use exterior lighting to accentuate safety and design elements of public and private outdoor areas and sidewalks. Provide Wi-Fi hotspots to attract pedestrians and encourage gathering at specified locations. Incorporate Landscape and Environmental Design © Design layered and lush landscaping through selection of plant materials that display a variety of shapes, textures, and colors. Select drought -tolerant and native plants to reduce irrigation and conserve water. Utilize planters and pots to provide greenery along sidewalks where street trees are not permitted. 71 N v Improve landscaping in parking areas VV through the use of tree canopies, landscape planters, and design of walls and fences that create visual interest, and reduce the heat island effect. 1 Use fences and walls as an extension of the architecture and character of the building. Utilize natural light through use of large window expanses, clearstories, skylights, etc. to enhance working spaces and reduce lighting energy consumption. Encourage Connectivity G Install bike facilities consistent with City building code requirements - such as bike racks, bike storage, bike sharing stations, dedicated shower rooms, and lockers - to encourage biking. Private Realm Strategies Design for Signage, Way -Finding, and Public Art .0 Design signs as an integral component of the architectural program. Consider channel letter signs, projecting signs, and flag signs. Avoid box signs with plastic covers. Incorporate way -finding through integral design of identity and directional signage and on-site lighting to guide and enhance circulations. Encourage public art, including murals, street paintings, outdoor installation art, and light -based art installations, to create visual interest along alleys. City of El Segundo \ SMOKY HOLLOW SPECIFIC PLAN \ 59 72 DESIGN GUIDELINES Design for public rights-of-way, pedestrian amenities, and parklets should consider and utilize the following design concepts. Provide street furniture of enduring quality and aesthetic value; examples include benches, information posts, trash cans, etc. ® Use enduring, quality paving materials or street painting to realize visual interest and differentiate the defined pedestrian zone from traffic lanes. QDesign layered and lush landscaping through selection of plant materials displaying a variety of shapes, textures, and colors. Utilize planters and pots to provide greenery, especially those that are lightweight, modular, movable, and easy to assemble and disassemble in anticipation of temporal events or for emergency use. IV 00 OCreate landscape buffers through use of flourishing plants and sturdy planters that enhance safety by separating the pedestrian zone from traffic lanes. Develop location -specific phone applications that inform about public amenities, assist in wayfinding, and encourage pedestrian interactions with destinations in and around Smoky Hollow. Design for public -rights-of-way should also consider the additional design concepts, as noted below. 1 Introduce outdoor food -related retail through allocation of dedicated spaces for food trucks, ice cream cars, food carts, farmer's market, and tailgating events. 6) Install bike facilities such as bike racks, bike storage, and bike sharing stations Public Realm Strategies j01 Utilize curb extensions (bulb -outs) to reduce pedestrian crossing distance and mitigate vehicular traffic. ® Use exterior lighting to accentuate safety and design elements and enhance the safety of public rights-of-way. Provide WiFi hotspots to attract pedestrian flows and encourage gathering at specified locations. Select drought -tolerant and native plants to reduce irrigation and conserve water. 0 Encourage public art including murals, street paintings, outdoor installation art, and light -based art installations to create visual interest. III Provide mid -block crossings to shorten walking distances, increase the safety of crossings, and enhance interactions between both sides of streets. City of El Segundo \ SMOKY HOLLOW SPECIFIC PLAN \ 87 73 RESOLUTION NO. A RESOLUTION ADOPTING AND APPROVING THE METHODOLOGY FOR APPROVING SMOKY HOLLOW SPECIFIC PLAN COMMUNITY BENEFIT PLANS The City Council of the City of EI Segundo does resolve as follows: SECTION 1: The City Council finds and declares that: A. In September 2018, the City Council approved comprehensive updates to the Smoky Hollow Specific Plan (EA -1011); B. Chapter 4 of the Smoky Hollow Specific Plan allows property owners and developers to submit Community Benefit Plans to the City outlining specific benefits in exchange for approve of increases in development intensity and/or other specified exceptions from the Specific Plan's standards; C. The Smoky Hollow Specific Plan prescribes five specific findings that must be made in order to approve a Community Benefit Plan proposal; D. To implement the Community Benefit Plan concept and to justify staff recommendations concerning the five required findings of a Community Benefit Plan, staff have developed a methodology for evaluating such plans; E. On December 12, 2019, Planning staff presented such methodology to the City's Planning Commission; F. The City Council desires to adopt such methodology. SECTION 2: Environmental Assessment. On September 18, 2018, the City Council certified an Environmental Impact Report (EIR) and a Mitigation Monitoring and Reporting Program (MMRP) for the Smoky Hollow Specific Plan. None of the conditions described in California Environmental Quality Act (CEQA) guidelines section 15162 exist that would require preparation of a subsequent EIR. The project is consistent with the certified EIR. SECTION 3: General Plan Findings. The City Council finds that the proposed methodology is consistent with the City's General Plan. SECTION 4: Approval and Authorization. The City Council adopts and approves the Community Benefit Plan methodology, as set forth in the attached Exhibit "A," which is incorporated herein by this reference. The City Manager or his designee is hereby authorized to take any actions necessary to implement the methodology. SECTION 5: Reliance On Record. Each and every one of the findings and determination in this Resolution are based on the competent and substantial evidence, both oral and written, contained in the entire record relating to the project. The findings and determinations constitute the independent findings and determinations of the City Council 129 in all respects and are fully and completely supported by substantial evidence in the record as a whole. SECTION 6: Limitations. The City Council's analysis and evaluation of the project is based on information available at the time of the decision. It is inevitable that in evaluating a project that absolute and perfect knowledge of all possible aspects of the project will not exist. In all instances, best efforts have been made to form accurate assumptions. SECTION 7: This Resolution will take effect immediately and remain effective until superseded by a subsequent resolution. PASSED, APPROVED AND ADOPTED this 4th day of February, 2020. ATTEST: Tracy Weaver, City Clerk APPROVED AS TO FORM: Mark D. Hensley, City Attorney Drew Boyles, Mayor 2 130