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ORDINANCE 1647ORDINANCE NO. 1647 AN ORDINANCE ADDING CHAPTER 15-13C (MICRO -UNITS) TO EL SEGUNDO MUNICIPAL CODE TITLE 15 TO IMPLEMENT THE 2021- 2029 EL SEGUNDO HOUSING ELEMENT The City Council of the city of El Segundo does ordain as follows: SECTION 1: The City Council finds and declares as follows: A. The State Legislature has declared that the lack of housing, including providing for a variety of housing types for all income levels and special needs groups, is a critical problem that threatens the economic, environmental, and social quality of life in California. & Government Code Section 65583 requires that the City's Housing Element address governmental constraints to the development of housing, including providing for a variety of housing types for all income levels. C. The City Council of the City of El Segundo adopted the City's 2021-2029 Housing Element on February 1, 2022. D. Program 8 of the City's 2021-2029 Housing Element provides that the City will establish regulations for micro -units. E. On June 23, 2022, the Planning Commission held a study session to receive public testimony and provide direction to staff on drafting a micro -unit ordinance. The Planning Commission appointed a subcommittee of two Commissioners to work with staff on drafting the proposed ordinance ("Ordinance"). F. On January 12, 2023, the Planning Commission held a public hearing to receive public testimony and other evidence regarding the Ordinance and adopted Resolution No. 2928 recommending that the City Council introduce and adopt the micro -unit Ordinance. G. On February 21, 2023, the City Council held a duly noticed public hearing and considered the information provided by City staff and public testimony regarding the updated Ordinance; and H. This Ordinance and its findings are made based upon the entire administrative record including, without limitation, testimony and evidence presented to the City Council at its February 21, 2023 hearing and the staff report submitted by the Community Development Department. ORDINANCE NO. 1647 PAGE 1 of 12 SECTION 2: Factual Findings and Conclusions. The City Council finds that introducing and adopting the Ordinance will amend the City's municipal code to establish: A. a minimum unit size in the City's residential zones; B. a definition for Micro -Unit developments; C. development, design, and operational standards; and D. ministerial and discretionary review and approval processes for micro -unit developments. SECTION 3: General Plan Findings. As required under Government Code § 65855 the proposed Ordinance is consistent with the City's General Plan as follows: A. 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 development restrictions that limit the number of affordable housing units that can be produced in the City. In addition, the zone text amendment is consistent with Goal No. 2 to provide sufficient new, affordable housing opportunities in the City. Further, the Ordinance is consistent with Program 7e, (Zoning Revisions) to consider an amendment to the ESMC to establish regulations for Single Room Occupancy (SRO) or Micro -unit Housing. SECTION 4: Zone Text Amendment Findings. In accordance with ESMC § 15-27-3, the Planning Commission finds that: A. The amendment is consistent with the General Plan, in that it is consistent with and implements several Housing Element goals and programs as set forth in Section 3 above. B. The amendment is necessary to serve the public health, safety, and general welfare in that it will facilitate the construction of new affordable housing units ranging from 250 to 450 square feet, which will meet the needs of certain groups with special requirements, including the needs of lower and moderate- income households as identified in the 2021-2029 Housing Element. ORDINANCE NO. 1647 PAGE 2 of 12 SECTION 5: Environmental Assessment. Based on the facts set forth in Section 2, the City Council finds that the Ordinance is exempt from the California Environmental Quality Act ("CEQA") (Pub. Resources Code, § 21000 et seq.) pursuant to CEQA Guidelines § 15061(b)(3)), because it consists only of minor revisions to existing zoning regulations and related procedures, and, therefore, it can be seen with certainty that there is no possibility that the Ordinance may have a significant effect on the environment. Furthermore, the Ordinance does not approve any specific project, and City staff will conduct discrete environmental review for any project proposed under this Ordinance's provisions. SECTION 6: ESMC Subsection 15-4A-6(F) regarding the R-1 zone Floor Area Ratio for lots wider than 25 feet is amended to read as follows: F. Minimum Unit Size and Floor Area Ratio: The minimum dwelling unit size shall be 250 square feet and the floor area ratio shall be as follows: 1. The maximum total building area on the lot shall not exceed an overall floor area ratio (FAR) of 0.60. There is no minimum building size. 2. The maximum FAR for the second floor of the primary structure shall not exceed 0.25. 3. In calculating the overall FAR, floor area is measured to the interior of a building's perimeter walls and shall include all floors of the primary dwelling (i.e., main structure), attached and detached accessory dwelling units, habitable attic space, accessory buildings, and balconies, decks, verandas and porches. 4. Areas where the vertical measurement between the floor and ceiling directly above is fourteen feet (14') or more shall be counted on both the first and second stories for FAR calculations (areas such as rotundas, spaces with vaulted ceilings, and other similar areas with volume). 5. Stairs and elevators are counted once and are applied to the first floor. ORDINANCE NO. 1647 PAGE 3of12 6. For purposes of calculating floor area, the following are not included: a. Basements as defined in section 15-1-6 of this title; b. Up to five hundred (500) square feet of interior floor area of an attached or detached garage; c. Detached accessory structures measuring not more than one hundred twenty (120) square feet; d. Up to five hundred (500) square feet cumulative of first floor decks, verandas and porches, covered or uncovered, attached or detached, and at least thirty inches (30") in height (as measured from adjacent grade to the walking surface), provided that the deck, veranda or porch is at least fifty percent (50%) open on the sides. e. Second floor balconies and decks that are not covered. f. Up to twelve (12) square feet of second floor decks and balconies that are covered by roof, lattice, or trellis. g. The area of decks, balconies, verandas or porches covered by eave projections up to eighteen inches (18"). 7. In cases of uncertainty or ambiguity, the director will determine whether an area is counted toward FAR. SECTION 7 ESMC Subsection 15-4A-6-1(F) regarding the R-1 zone Building Area for lots 25 feet wide or less is amended to read as follows: F. Minimum Unit Size: The minimum dwelling unit size shall be 250 square feet. SECTION 8: ESMC Subsection 15-4B-6(F) regarding the R-2 zone Building Area is amended to read as follows: F. Minimum Unit Size: The minimum dwelling unit size shall be 250 square feet. SECTION 0: ESMC Subsection 15-4C-5(F) regarding the R-3 zone Building Area is amended to read as follows: F. Minimum Unit Size and Density: The minimum dwelling unit size shall be 250 square feet and the density shall be as follows: 1. On property of 15,000 square feet or less in size, one unit for every 1,613 square feet of lot area is allowed. A fraction of a lot greater than 1,075 square feet will allow an additional unit. ORDINANCE NO. 1647 PAGE 4 of 12 2. On property greater than 15,000 square feet in size, one unit for every 2,420 square feet of lot area is allowed. A fraction of a lot greater than 1,613 square feet will allow an additional unit. SECTION 10: A new Chapter 15-13C (Micro -Units) is added to ESMC Title 15 to read as follows: CHAPTER 15-13C Micro -Units 15-13C-1: Purpose 15-13C-2: Applicability; Locations 15-13C-3: Unit size; Unit size mix 15-13C-4: Concentration; Unit mix 15-13C-5: Development agreement required 15-13C-6: Operational standards 15-13C-7: In -unit amenities 15-13C-8: Development standards 15-13C-9: Common onsite amenities 15-13C-10: Design standards 15-13C-11: Prohibition of condominium subdivisions 15-13C-12: Development impact mitigation fees 15-13C-13: Administration and enforcement 15-13C-1: Purpose It is the purpose of this chapter to encourage the production of a more diverse housing stock and more affordable housing options. In enacting this chapter, it is also the intent of the City to implement the goals, objectives, and policies of the Housing Element of the City's General Plan. 15-13C-2: Applicability; Locations A. Housing developments containing 5 or more units 250 to 450 square feet shall be considered "Micro -Unit developments" and be subject to the standards in the underlying zoning district, specific plan or overlay and the standards in this chapter. If the standards in this chapter conflict with the underlying zoning, the standards in this chapter will take precedence. Housing developments containing fewer than 5 units 250 to 450 square feet shall not be considered Micro -Unit developments and shall be subject only to the standards in the underlying zoning district, specific plan or overlay. ORDINANCE NO. 1647 PAGE 5 of 12 B. Micro -Unit developments are permitted in the following zones, overlays, specific plans, and other locations that the City Council may designate: 1. Multi -family Residential (R-3) Zone 2. Housing Overlay (HO) District 3. Mixed -Use Overlay (MU-0) District 4. Downtown Specific Plan (DSP) 15-13C-3: Unit size; Unit size mix A. Unit size. Each unit must be at least 250 square feet in floor area but cannot exceed 450 square feet in floor area. B. Unit size mix. 50% of the micro -units in a project must be at least 350 square feet in floor area. 15-13C-4: Concentration; Unit mix A maximum 25% of residential units in a development may be micro -units, unless otherwise agreed to via development agreement under section 15-13C-6. 15-13C-5: Development agreement required A. A development agreement pursuant to Government Code § 65854 et seq. is required for a micro -unit development proposing more than 40 total units or in excess of the 25% micro -unit limit set forth in section 15-13C-4. The foregoing notwithstanding, no development may not exceed a maximum of 75% micro -units of the total number of residential units in a development. B. A development agreement is required for projects with 40 or fewer total units that do not comply with the required standards, amenities, or unit mix specified in this chapter. C. The Community Development Director, or designee, may require the person requesting the development agreement to include reasonable information or documentation as part of the development agreement application process. ORDINANCE NO. 1647 PAGE 6 of 12 15-13C-6: Operational standards Projects subject to this chapter must comply with this section's operational standards, unless otherwise provided in a development agreement pursuant to section 15-13C-6: A. Onsite manager required for projects pursuant to California Code of Regulations Title 25 section 42. B. The minimum length of stay shall be 30 days; short-term rentals are prohibited,. C. Occupancy is limited to two persons, not including children up to three years of age. D. A management plan must be submitted to the Community Development Director before the City issues building permits or before a development agreement is approved for review and approval and must, without limitation, provide for the following: 1. Security; 2. Rental periods; 3. Tenant screening and residency requirements; 4. Parking; and 5. Occupancy limits. 15-13C-7: In -unit amenities Each micro -unit must contain the following amenities, unless otherwise provided in a development agreement pursuant to section 15-13C-6: A. One kitchen in every unit, including the following minimums: 1. 30-inch sink; 2. 18-inch by 24-inch counter; 3. Stove and/or oven feature; 4. 24-inch wide, full height refrigerator; and 5. Microwave B. One bathroom, including the following minimums: 1. Toilet; 2. Sink; and 3. Bathtub or shower. C. A minimum 48 square feet of storage space in a closet. ORDINANCE NO. 1647 PAGE 7 of 12 15-3C-8: Development standards Projects subject to this chapter must comply with this section's development standards for micro -units, unless otherwise provided in a development agreement pursuant to section 15-13C-6: A. Vehicle parking. One space for studio and one -bedroom units or 1.5 spaces for two -bedroom units. B. Other parking standards in Chapter 15-15 (Off-street parking) C. Bicycle parking —1 rack (two -bike capacity) for every 3 units D. Deviation from parking standards. Any person requesting deviation from the vehicle parking requirements in section 15-3C-9 must submit a parking demand study and Transportation Demand Management (TDM) program to the City with its development agreement application, or at a later time, for review and approval by the Community Development Director or designee. The Community Development Director or designee will consider the following mobility amenities and incentives in reviewing the TDM program and proposed deviations from the parking requirements in this section: 1. Bicycle parking/storage beyond minimum code requirements; 2. Onsite bike -share station; 3. Onsite car -share stop; 4. Shuttle service to major hubs; 5. Onsite childcare service; 6. Subsidized transit passes for residents; 7. Unbundling parking spots from the regular rent; or 8. Use of point system or consideration of proximity to public transit. E. Security. 1. Minimum lighting of 1.25 foot-candles is required in all parking areas. 2. Projects must comply with all applicable security code provisions in this code. 15-13C-9: Common onsite amenities A. Private Open Space. All units must have a minimum of 50 square feet of private open space. ORDINANCE NO. 1647 PAGE 8 of 12 B. Common Open Space. There must be a minimum of 400 square feet of common open space for the first 30 project units overall, plus 15 square feet per each unit above the first 30 project units. C. Common Indoor Space, 1. Projects must include common indoor space equal to at least the greater of 10 square feet per unit or 200 square feet. 2. Common indoor space must consist of the following amenities: a. Communal kitchen. Projects with more than 30 units must incorporate at least one common full kitchen and b. Multipurpose space. Projects must incorporate multipurpose space on each floor that may include any of the following: i. Office/meeting room; ii. Fitness room/gym; iii. Game/craft room; iv. Living room; or v. Other similar uses. 3. Required common indoor space excludes janitorial storage, laundry facilities, and common hallways. D. Laundry. Projects must provide one washer and dryer per 10 units or fraction thereof. 15-13C-10: Design Standards Projects subject to this chapter must comply with the following design standards, unless otherwise provided in a development agreement pursuant to section 15-13C-6: A. Unit configuration. Project configuration must facilitate the future combination of micro -units into larger units. B. Ceiling height. Micro -unit ceiling height must be at least nine feet. C. Access to natural light. Micro -units must have direct access to natural light. D. Window size. The total square -foot area of windows in a micro -unit must equal at least 15% of the unit's floor area. ORDINANCE NO. 1647 PAGE 9 of 12 15-13C-11: Prohibition of condominium subdivisions The subdivision or individual sale of micro -units is prohibited. 15-13C-12: Development impact mitigation fees Micro -units are subject to the same development impact mitigation fees as other multi- family residential units. 15-13C-13: Administration and enforcement. A. The City Council may establish fees by resolution for the City's ongoing administration of this chapter. B. The Community Development Director, or designee, may promulgate regulations to facilitate the City's ongoing administration of this chapter, and such regulations will become effective upon publication on the City's website. SECTION 11: Electronic Signatures. This Ordinance may be executed with electronic signatures in accordance with Government Code § 16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature. SECTION 12: Construction. This Ordinance must be broadly construed 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 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. SECTION 1'4: Recordation. The City Clerk, or designee, is directed to certify the passage and adoption of this Ordinance; cause it to be entered into the City of El 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. ORDINANCE NO. 1647 PAGE 10 of 12 SECTION 15: Effective Date. This Ordinance will become effective 30 days following its passage and adoption. PASSED AND ADOPTED this 7th day of March, 2023. ATTEST: Tray aver, City Clerk APPROVED 0 FORM: Mark D. HeKsley, City Attorney Dr6w-Boyles, Mayor ORDINANCE NO. 1647 PAGE 11 of 12 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) I, Lili Sandoval, Deputy City Clerk of the City of El 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. 1647 was duly introduced by said City Council at a regular meeting held on the 21st day of February 2023, and was duly passed and adopted by said City Council, approved and signed by the Mayor, and attested to by the Deputy City Clerk, all at a regular meeting of said Council held on the 7th day of March, 2023, and the same was so passed and adopted by the following vote: AYES: Mayor Boyles, Mayor Pro Tern Pimentel, Council Member Pirsztuk, Council Member Giroux, and Council Member Baldino NOES: None ABSENT: None ABSTAIN: None WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this day of March, 2023. Lili 86ndoval, Deputy City Clerk of the City of El Segundo, California ORDINANCE NO. 1647 PAGE 12 of 12