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11.01 First Reading ORD 02-18 DRC Noticing1. SUBJECT An Ordinance amending Section 17.08.040 of the Orange Municipal Code (OMC) to establish notification requirements for Design Review projects involving construction of second stories or additional units on properties in residential zones within the boundaries of an established historic district. 2. SUMMARY 7= The Ordinance Amendment of OMC Section 17.08.040 will require noticing of public meetings of the Design Review Committee to consider projects involving construction of second stories or additional units on properties in residential zones in an established historic district. Notices will be posted at the subject property and mailed to property owners and residents within 300 feet of the subject property. 3. RECOMMENDED ACTION Adopt Ordinance No. 02 -18: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ORANGE AMENDING SECTION 17.08.040 OF THE ORANGE MUNICIPAL CODE TO ESTABLISH NOTIFICATION REQUIREMENTS FOR DESIGN REVIEW PROJECTS INVOLVING CONSTRUCTION OF SECOND STORIES OR ADDITIONAL UNITS ON PROPERTIES IN RESIDENTIAL ZONES WITHIN THE BOUNDARIES OF AN ESTABLISHED HISTORIC DISTRICT 4. FISCAL IMPACT Minor costs associated with administrative staff time and mailings. 5. STRATEGIC PLAN GOAL(S) 3(c). Enhance and promote quality of life in the community; support and enhance attractive, diverse living environments. 5(b). Recognize, promote and preserve Orange's rich heritage; expand and strengthen processes and practices related to protection of cultural resources. 6. GENERAL PLAN IMPLEMENTATION Land Use Element Goal 8.0 Encourage active involvement of residents, businesses, and agencies in the planning and decision making process. Policy 8.1 Continue to provide opportunities for public education and involvement in land use planning decisions through public hearings, community meetings, study sessions, electronic media, and any other appropriate and available means. Implementation Program IV -3 Use public education activities to accomplish the following objectives: Improve citizen participation in land use and economic development planning processes. Promote awareness of Orange's historical and architectural resources and potential strategies for adaptive reuse of historic structures. 7. DISCUSSION and BACKGROUND The Historic Preservation Design Standards for Old Towne (Design Standards) were adopted by City Council on December 12, 2017. At that Council meeting, the Council expressed that the proposed elimination of Planning Commission review for construction of second stories and additional units would limit the ability of adjacent property owners and residents to comment on proposed projects prior to their approval. The Council adopted the update and directed staff to prepare an Ordinance Amendment to establish notification requirements for these types of Design Review projects on properties in residential zones in historic districts to ensure that members of public have the opportunity to comment on projects that may affect the aesthetics, privacy, and enjoyment of their properties. The proposed Draft Ordinance Amendment (Attachments la and lb to this report) modifies OMC Section 17.08.040 — Notice of Hearings to create notification requirements for the following Design Review projects in established historic districts: • New second stories • Additions to existing second stories • Construction of additional units ITEM 2 2/13/2018 As part of the Design Review application for these projects, applicants will be required to provide notification maps, mailings lists, and labels from a Title Company or Ownership Listing Service as described in the Land Use Project Application. Notification of the Design Review Committee meeting to consider the project is required in the following manner: • Posted notice at the subject property • Mailed notice to property owners and occupants within 300 feet of the subject property The 300 foot radius for mailed notices is consistent with noticing requirements for other project types in the City. The Ordinance Amendment will apply to the currently established historic districts (the National Register of Historic Places designated Plaza Historic District, the National Register designated Old Towne Historic District, and the local Old Towne Historic District) and any future historic districts. No other changes are proposed to the notification requirements in OMC 17.08.040. Design Review projects inside the Old Towne Historic Districts that do not involve construction of second stories or additional units and Design Review projects outside of the Historic Districts will not require notification. Any projects in the Historic Districts that require Variances, Conditional Use Permits, Major Site Plan Reviews, or environmental review under the California Environmental Quality Act (CEQA) will continue to require notification as described in OMC 17.08.040. However, staff is currently studying a comprehensive update to all notification requirements that will be brought forward to the Council in the future. The new notification requirements will necessitate an increase in administrative staff time and costs in preparing for Design Review Committee meetings and processing the mailings. In some cases, the notification requirement may result in longer timelines for project processing due to the staff time required to coordinate the mailings approximately two weeks prior to the Design Review Committee meeting. In 2017, staff received and processed three applications that would require notification under the proposed Ordinance Amendment. Alternative Notification Study In response to Council's direction about potential impacts to adjacent property owners, staff also studied an alternative approach to mailed notices. A 300 foot radius around a standard residential lot in Old Towne typically includes properties more than a block away from the subject property (See Attachment 3 — Sample Notification Maps). In some cases, the 300 foot radius will require mailed notices to property owners who may not be directly affected by potential changes to privacy or aesthetics from these projects. As an alternative, staff considered a mailed notification requirement for adjacent properties only. This would include any parcels sharing property lines with the subject property and those directly across any streets. This would typically result in under 10 adjacent properties requiring notification, compared with 50 to 70 properties typical of a 300 foot radius in Old Towne. Under either option, a notice would be posted at the subject property to inform the neighborhood at large of the proposed project. The benefits of noticing only adjacent properties include: ITEM 3 2/13/2018 • Staff would be able to generate the notification maps and mailing labels given the small number of properties, rather than requiring the applicant to pay a Title Company or Ownership Listing Service • Reduced amount of property owner and staff time, and mailing costs for the smaller number of mailed notices Staff's consideration of alternative noticing is provided for informational purposes. In order to be consistent with the existing notification requirements for other project types in the City, staff is recommending approval of the 300 foot radius for mailed notices and has prepared the Draft Ordinance Amendment to reflect this radius. Planning Commission Recommendation On January 15, 2018, the Planning Commission conducted a regularly scheduled public hearing on the Ordinance Amendment. A Public Hearing Notice was published in the local newspaper on January 3, 2018. No public comments were received. The Planning Commission recommended approval of the Ordinance Amendment to the City Council with a 4 -0 vote. City Council Hearing A Public Hearing Notice was published in the local newspaper on December 31, 2018. As of the writing of this staff report, no public comments were received. Should the Council approve the Ordinance, a second reading will be agendized and the Ordinance will become effective 30 days after the second reading. Environmental Review Per California Environmental Quality Act (CEQA) Guideline 15378, the draft Zoning Ordinance Amendment is not a project, because noticing is an administrative activity of a local government that does not have the potential to result in a direct or reasonably foreseeable indirect physical change to the environment. Because the amendment is not a project, it is not subject to the provisions of CEQA and no public environmental review is required. 8. ATTACHMENTS Attachments to Report 1. Ordinance No. 02 -18 a. Draft Ordinance Amendment (clean) b. Draft Ordinance Amendment (redline) 2. City Council Minutes from December 12, 2017 3. Planning Commission Resolution No. PC 01 -18 4. Planning Commission Staff Report from January 15, 2018 (no attachments) 5. Draft Planning Commission Minutes from January 15, 2018 6. Sample Notification Maps for 300 Foot Radius and Adjacent Properties N: \CDD\PLNG \Ordinance Amendments\DRC Noticing for Historic District \CC_Staff Report 2018- 02- 13.doc ITEM 4 2/13/2018 ORDINANCE NO. 02-18 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ORANGE AMENDING SECTION 17.08.040 OF THE ORANGE MUNICIPAL CODE TO ESTABLISH NOTIFICATION REQUIREMENTS FOR DESIGN REVIEW PROJECTS INVOLVING CONSTRUCTION OF SECOND STORIES OR ADDITIONAL UNITS ON PROPERTIES IN RESIDENTIAL ZONES WITHIN THE BOUNDARIES OF AN ESTABLISHED HISTORIC DISTRICT WHEREAS, at the December 12, 2017 City Council meeting, the Council reviewed and adopted an update to the Historic Preservation Design Standards for Old Towne; and WHEREAS, at that same meeting, the City Council directed staff to prepare an Ordinance Amendment to establish notification requirements for Design Review projects involving construction of second stories or additional units on properties in residential zones within the boundaries of established historic districts; and WHEREAS, the City of Orange contains three established historic districts: 1) the Plaza Historic District, designated in the National Register of Historic Places in 1982; 2) the local Old Towne Historic District, designated by City Council in 1991; and 3) the Old Towne Historic District, designated in the National Register of Historic Places in 1997, and may establish additional historic districts in the future; and WHEREAS, the City desires to provide nearby property owners and residents the opportunity to comment in a public meeting on proposed projects in established historic districts that may affect the aesthetics, privacy, or enjoyment of their properties; and WHEREAS, the amendment of Orange Municipal Code Section 17.08.040 requires that notice of the public meeting of the Design Review Committee to consider these projects shall be posted at the subject property and mailed to property owners and occupants within 300 feet of the subject property; and WHEREAS, the proposed ordinance amendment is not a project pursuant to California Environmental Quality Act (CEQA) Guideline 15378, because changes to the noticing requirements for projects could not have the potential to result in a direct or reasonably foreseeable indirect physical change to the environment; and WHEREAS, the Planning Commission conducted one duly advertised public hearing on January 15, 2018, at which time interested persons had an opportunity to testify either in support of or in opposition to the proposed ordinance amendment and recommended its approval to the City Council; and ATTACHMENT NO. 1A ORDINANCE NO. 02-18 DRAFT ORDINANCE AMENDMENT (CLEAN) FEBRUARY 13, 2018 CC MEETING CITY COUNCIL MINUTES FEBRUARY 13, 2018 11 PUBLIC HEARINGS 11.1 An Ordinance amending Section 17.08.040 of the Orange Municipal Code to Establish Notification Requirements for Design Review Projects involving Construction of Second Stories or Additional Units on Properties in Residential Zones within the Boundaries of an Established Historic District. (A2500.0) Time set for a public hearing to consider establishing notification requirements for certain types of Design Review projects on properties in residential zones within the boundaries of an established historic district. THE MAYOR OPENED THE PUBLIC HEARING; AND THERE BEING NO SPEAKERS, THE MAYOR CLOSED THE PUBLIC HEARING. Ordinance No. 02 -18 (First Reading) An Ordinance of the City Council of the City of Orange amending Section 17.08.040 of the Orange Municipal Code to Establish Notification Requirements for Design Review Projects involving Construction of Second Stories or Additional Units on Properties in Residential Zones within the Boundaries of an Established Historic District. MOTION — Smith SECOND — Whitaker AYES — Alvarez, Whitaker, Smith, Murphy, Nichols Moved to approve Ordinance No. 02 -18 for First Reading and same was set for Second Reading by the preceding vote. 11.2 An appeal of the Planning Commission decision to deny Conditional Use Permit No. 3003 -16 for an Alcohol and Beverage Control (ABC) License Type 20 (Off -Sale Beer & Wine) located at 684 S. Glassell Street. Appeal No. 550 -17. (A4000.0) (NOTE: ITEM TO BE CONTINUED TO THE MAY 8, 2018, CITY COUNCIL MEETING) Time set for a public hearing to consider an appeal by the applicant, Joseph Karaki of Western States Engineering, on behalf of Cadnicks 76 Service Station, of the Planning Commission decision to deny Conditional Use Permit No. 3003 -16 for an Alcohol and Beverage Control (ABC) License Type 20 (Off -Sale Beer & Wine) located at 684 S. Glassell Street. Councilmember Alvarez left the dais at 9:07 p.m. MOTION — Nichols SECOND — Murphy AYES — Whitaker, Smith, Murphy, Nichols ABSENT — Alvarez Moved to continue this Item to the May 8, 2018, Regular City Council meeting. Councilmember Alvarez returned to the dais at 9:08 p.m. PAGE 12