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SR - ORD-08-14 - STREAMLINING CITY REVIEWmay a untrx AGENDA ITEM December 9, 2014 TO: Honorable Mayor and Members of the City Council THRU: John W. Sibley City Manager FROM: Rick Otto, Interi Community Deve pment Director ReviewedNerified By: City Manager Finance Dire or To Be Presen Anna Pehoushek Cons Calendar _ City Mgr Rpts Council Reports _ Legal Affairs Boards /Cmtes X Public Hrgs Admin Reports Plan /Environ 1. SUBJECT An Ordinance of the City Council of the City of Orange amending Title 17 of the Orange Municipal Code to streamline City review and clarify standards for certain types of residential accessory structures, bingo games, churches in Industrial zones, and parking structure floor area ratio. 2. SUMMARY In October 2012, the City Council directed the Community Development Department to undertake amendments to Title 17 of the Orange Municipal Code (Zoning Ordinance) with the purpose of streamlining the review of certain types of development applications and uses in order to simplify and make the public's interaction with the City more streamline, as well as to make more efficient use of City staff resources. The subject Ordinance represents the third phase of Code streamlining and addresses certain types of residential accessory structures, bingo games, churches in Industrial zones, and parking structure floor area ratio. 3. RECOMMENDATION (1) Find the Ordinance categorically exempt from the provisions of the California Environmental Quality Act (CEQA) per State CEQA Guidelines Section 15305. (2) Adopt Ordinance No. 08 -14 amending Title 17 of the Orange Municipal Code related to accessory structures, bingo games, churches in Industrial zones, and parking structure floor area ratio. 4. FISCAL IMPACT None. ITEM // / 1 12/9/14 5. STRATEGIC PLAN GOAL(S) 4a. Obtain, implement and evaluate public input into our services and programs. 4b. Provide facilities and services to meet customer expectations. 6. GENERAL PLAN IMPLEMENTATION Land Use Element Goal 6.0: Advance development activity that is mutually beneficial to both the environment and the community. 7. DISCUSSION and BACKGROUND The subject Ordinance represents the third tier of development streamlining opportunities stemming from the City's 2012 Organizational Assessment. A fourth phase of Code streamlining amendments is presently under development to continue this effort. The proposed Ordinance addresses the review process and clarifies City standards for certain types of residential accessory structures, bingo games, churches in Industrial zones, and parking structure floor area ratio. Specifically, the Ordinance: • Provides new parameters for plumbing facilities, washing machines, and water heaters in accessory structures. • Provides new definitions for habitable and non - habitable accessory structures and distinguishes them from accessory second dwelling units. • Consolidates and clarifies standards for attached and detached accessory structures. • Provides greater flexibility for the City to allow bingo games as an accessory use, and a more streamlined review process for bingo games as a stand -alone use. • Establishes a process for allowing churches in the Industrial zone based on a review of parking conditions rather than as a conditionally permitted use. • Codifies the City's practice of not including parking structures in the calculation of floor area ratio. A detailed discussion of the Code revisions is presented in Attachment 5 to this report. The following discussion summarizes the Code changes related to each matter. ITEM 2 12/9/14 Residential Accessory Structures Staff receives routine inquiries from the public about a wide variety of accessory structure scenarios including: Installation of utility sinks, washing machines, and water heaters in garages. Installation of wet bars and/or bathrooms in various types of detached accessory structures (e.g., recreation rooms, pool houses, exercise rooms, guest houses). Presently, the Code allows plumbing facilities in accessory structures in a limited capacity. Specifically, detached accessory structures with unfinished interiors may contain a utility sink, and detached accessory structures less than 150 sq. ft. may contain a half -bath (toilet and sink). Additional interior plumbing facilities for accessory structures not meeting either of these criteria are allowed only with approval of a conditional use permit. Existing Code requirements also lead to ambiguity regarding the treatment of detached habitable accessory structures such as pool houses, recreation rooms, exercise rooms, and guest houses. These structures generally exceed 150 sq. ft. in area. Property owners often want to incorporate bathrooms and wet bars into these types of structures. Here again, approval of a conditional use permit is required. While the limitations in the present Code language serve a purpose, and are designed to preserve onsite parking accessibility, and discourage illegal accessory structure conversions to living units, in some instances the amenities being requested are simply functional and justifiable given the circumstances, and the Code requirement for a conditional use permit places an unnecessary burden on the property owner, as the requested activity presents no potential adverse effects on its surrounding (e.g., utility sink and water heater together in an accessory structure, or a bathroom and wet bar in a pool house). In order to simplify the Code requirements for accessory structures, and streamline the approval process for accessory structures with certain types of amenities, Staff has proposed the following Code revisions: • Establish definitions for "habitable accessory structure" and "non- habitable accessory structure" to distinguish them from "accessory second housing unit." • Revise the definition of "kitchen" to distinguish a full kitchen intended for typical household use from incidental kitchen -like amenities commonly associated with an accessory structure intended for recreational uses (i.e., wet bar, microwave, mini - refrigerator). • Combine the development standards for attached and detached accessory structures. ITEM 3 12/9/14 • Allow installation of a utility sink, washing machine, water heater, or similar plumbing facilities in a residential garage provided that the garage remains available for parking. Allow habitable accessory structures up to 450 sq. ft. in size to include plumbing facilities. Require approval of a conditional use permit for habitable accessory structures larger than 450 sq. ft. in aggregate area, either with or without plumbing facilities. Where such structures meet the criteria for an "accessory second housing unit" as defined in the Code, they would be permitted, and be subject to the provision of additional on -site parking. These changes enable over - the - counter review and approval of a substantial portion of accessory structure improvements that come before Planning staff. Scenarios involving a larger accessory structure footprint as noted in the final bullet above would continue to require approval of a conditional use permit via a Planning Commission public hearing. This process enables closer scrutiny of property changes that could fundamentally alter property characteristics in a manner that is incompatible with the prevailing neighborhood character and intent and purpose of the underlying residential General Plan land use designation and zoning classification for the property (e.g., creation of a compound). Parking Structures and Floor Area Ratio As a practice, the City has not included parking structures in the calculation of floor area ratio (FAR) for new development, in order to encourage land to be put to higher and better use, and provide property owners and developers with greater flexibility. This exemption, however, is not clearly presented in the Code. Staff proposes a revision to the definition of FAR to indicate that parking structure floor area shall not be included in the calculation of FAR. Bingo Games The Code presently requires bingo games subject to approval of a conditional use permit. Often Bingo is proposed as an accessory activity to existing church, fraternal organization, or similar not - for - profit uses; however, in some instances, bingo is proposed as a stand -alone use. Conditional use permits for Bingo involve a recommendation from the Planning Commission, and ultimate approval by the City Council. City Council review typically does not result in public input or the addition of conditions of approval beyond those recommended by the Planning Commission. Therefore, staff is proposing revisions to the Code that would allow bingo as an accessory to certain uses to occur without a conditional use permit provided that the activity is conducted in accordance with Chapter 5.95 of the Orange Municipal Code (Business Taxes and Regulations, Bingo). The Code revisions would allow bingo as a stand -alone use through the approval of a ITEM 4 12/9/14 conditional use permit by the Planning Commission. City Council approval would no longer be required. The proposed changes also address bingo uses in Industrial and Public Institution zones, as bingo is not presently included in the land use tables for these zones. Churches in Industrial Zones The City presently requires approval of a conditional use permit for churches in Industrial zones. This requirement is based primarily on the need to confirm that parking demand associated with a church does not negatively impact industrial activity occurring on a shared site. The City requests information about hours of peak activity and parking demand for proposed churches and adjacent uses to confirm that peak demand for shared parking does not conflict. Based on this review, the City routinely grants approval of these types of conditional use permits. Staff is proposing revisions to the Code that allow churches in Industrial zones as a permitted use. Where a church occupies a tenant space in a multi- tenant industrial center, approval of a parking management plan via the Minor Site Plan Review process would be required. This change provides relief from the Planning Commission public hearing process. Planning Commission Review The Planning Commission conducted a public hearing on the proposed Ordinance on September 15, 2014. The Commission requested information about whether or not churches were allowed by right in any one of the City's zoning districts, and if the Code change was intended to encourage churches in industrial zones rather than other areas of the community. The Commission also asked whether staff had any concerns about parking issues related to bingo as an accessory use. There were no comments from members of the public on the item. With regard to churches as a use in the various zoning districts, a conditional use permit is presently required in all zoning districts that accommodate churches as a use. With the Code changes, the two industrial zones would be the only zoning districts that would not require a church to obtain a conditional use permit. Staff believes that allowing churches by right in the industrial zones is appropriate given the fact that these zones are found in areas of the city that are generally developed with large buildings and sites that can accommodate gatherings of people, and are typically separated from sensitive land uses, such as residential neighborhoods, that have greater potential to be negatively impacted by parking, traffic, and evening activities commonly associated with churches. The Code changes are not designed to encourage churches in industrial zones, but rather to streamline the review process due to the minimal potential for negative effects on surrounding land uses. In the case of parking demand related to bingo as an accessory use, staff does not believe that bingo would generate an inordinate amount of parking demand beyond other types of gatherings associated with the primary use of the property (e.g., musical programs, lectures). ITEM 5 12/9/14 7. ATTACHMENTS 1. Ordinance No. 08 -14 (clean copy) 2. Ordinance No. 08 -14 (redline copy) 3. Planning Commission Resolution No. 15 -14 4. Planning Commission Minutes, September 15, 2014 5. Planning Commission Staff Report, September 15, 2014 N: \CDD\PLNG \Ordinance Amendments\Dev_Strm_AccStrct_ Bingo _ PkgStrFAR_ ChurcheslndZones (Ord_08- 14) \CC \CC_Rpt_ 12_9_14.docx ITEM 6 12/9/14 ORDINANCE NO. 08-14 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ORANGE AMENDING TITLE 17 OF THE ORANGE MUNICIPAL CODE TO STREAMLINE THE REVIEW PROCESS AND CLARIFY CITY STANDARDS FOR CERTAIN TYPES OF RESIDENTIAL ACCESSORY STRUCTURES, BINGO GAMES, CHURCHES IN INDUSTRIAL ZONES, AND PARKING STRUCTURE FLOOR AREA RATIO WHEREAS, the City desires to put in place policies and procedures that avail the public of efficient and expeditious review of new residential accessory structures that provide conveniences and amenities for single - family residences, while ensuring preservation of the distinctive quality and character of Orange's diverse neighborhood environments; and WHEREAS, the City recognizes that Bingo games most commonly occur as an accessory activity to churches, fraternal organizations, and similar uses as a not - for - profit fundraising tool to support organization and community service efforts, and that the Planning Commission's public hearing process provides an adequate forum for vetting concerns and imposing conditions for Bingo games as stand -alone uses; and WHEREAS, the City desires to accommodate churches in Industrial zones without the need for a public hearing, provided that they do not negatively impact parking, and create negative conditions for conducting business consistent with the land use and economic development objectives of the City's industrial zones; and WHEREAS, the City recognizes that site redevelopment or intensification often involves the need for structured parking to satisfy project parking as required by the Zoning Ordinance, and desires to exempt the floor area of structured parking for purposes of calculating a project's floor area ratio in order to facilitate site redevelopment at levels of intensity allowed for in the General Plan. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ORANGE DOES HEREBY ORDAIN AS FOLLOWS: SECTION I: Section 17.04.020 is revised to amend the definition of Accessory Structure as follows: ACCESSORY STRUCTURE — A building attached to or detached from the principal building on the same lot and customarily incidental and subordinate to the principal building. In no circumstances shall an accessory building contain facilities for fully independent living. ATTACHMENT NO. 1 1 ORDINANCE NO. 08-14 (CLEAN COPY) TITLE 17 PUBLIC HEARING DECEMBER 9, 2014 CC MTG