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HomeMy WebLinkAboutAgenda Packet - CC - 2020.03.02• City of Burlingame BURLINGAME CITY HALL 501 PRIMROSE ROAD BURLINGAME BURLINGAME, CA 94010 Meeting Agenda - Final City Council Monday, March 2, 2020 7:00 PM Council Chambers CLOSED SESSION - 6:00 p.m. - Conference Room A a. Approval of the Closed Session Agenda b. Closed Session Community Forum: Members of the Public May Address the Council on any Item on the Closed Session Agenda at this Time C. Adjournment into Closed Session d. Conference with Legal Counsel - Anticipated Litigation Significant Exposure to Litigation Pursuant to Government Code Section 54956.9(b): One Case (Letter regarding California Voting Rights Act/District Elections) Staff in Attendance: City Clerk, City Manager, and City Attorney Note: Public comment is permitted on all action items as noted on the agenda below and in the non -agenda public comment provided for in item 7. Speakers are asked to fill out a "request to speak" card located on the table by the door and hand it to staff, although the provision of a name, address or other identifying information is optional. Speakers are limited to three minutes each; the Mayor may adjust the time limit in light of the number of anticipated speakers. All votes are unanimous unless separately noted for the record. 1. CALL TO ORDER - 7:00 p.m. - Council Chambers 2. PLEDGE OF ALLEGIANCE TO THE FLAG 3. ROLL CALL 4. REPORT OUT FROM CLOSED SESSION 5. UPCOMING EVENTS 6. PRESENTATIONS a. Presentation by CORA (Community Overcoming Relationship Abuse) Recognizing Police Officer Richard Scheno City of Burlingame Page 1 Printed on 212712020 City Council Meeting Agenda - Final March 2, 2020 b. Proclamation Celebrating the 100th Anniversay of the 19th Amendment and the Founding of the League of Women Voters 7. PUBLIC COMMENTS, NON -AGENDA Members of the public may speak about any item not on the agenda. Members of the public wishing to suggest an item for a future Council agenda may do so during this public comment period. The Ralph M. Brown Act (the State local agency open meeting law) prohibits the City Council from acting on any matter that is not on the agenda. 8. APPROVAL OF CONSENT CALENDAR Consent calendar items are usually approved in a single motion, unless pulled for separate discussion. Any member of the public wishing to comment on an item listed here may do so by submitting a speaker slip for that item in advance of the Council's consideration of the consent calendar. a. Approval of City Council Meeting Minutes for February 18, 2020 Attachments: Meeting Minutes b. Quarterly Investment Report, Period Ending December 31, 2019 Attachments: Staff Report Portfolio Holdings CERBT Strategy 1 PARS Statement 9. PUBLIC HEARINGS (Public Comment) a. Public Hearing to Consider Proposed Amendments to Chapter 25.59 (Accessory Dwelling Units) Chapter 25.60 (Accessory Structures in R-1 and R-2 Districts), Chapter 25.26 (R-1 District Regulations) and Chapter 25.70 (Off -Street Parking) of the Burlingame Municipal Code Related to Accessory Dwelling Units to be Consistent with Recently Adopted Amendments to California Government Code Sections 65852.2 and 65852.22 and Additional Changes to Remove Constraints to Creating Accessory Dwelling Units Attachments: Staff Report Draft Ordinance Proposed CEQA Resolution ADU Amendments - Clean 2019 State Legislation - ADU 10. STAFF REPORTS AND COMMUNICATIONS (Public Comment) a. Consideration of Appointment to the Planning Commission Attachments: Staff Report City of Burlingame Page 2 Printed on 2/27/2020 City Council Meeting Agenda - Final b. Consideration of Two Appointments to the Measure I Citizens' Oversight Committee Attachments: Staff Report C. 220 Park Road (Former Post Office) — Application Update Attachments: Staff Report January 21 2020 Meeting Minutes 11. COUNCIL COMMITTEE AND ACTIVITIES REPORTS AND ANNOUNCEMENTS Councilmembers report on committees and activities and make announcements. a. Mayor Beach's Committee Report Attachments: Committee Report b. Councilmember Colson's Committee Report Attachments: Committee Report 12. FUTURE AGENDA ITEMS 13. ACKNOWLEDGMENTS March 2, 2020 The agendas, packets, and meeting minutes for the Planning Commission, Traffic, Safety & Parking Commission, Beautification Commission, Parks & Recreation Commission, and Library Board of Trustees are available online at www.burtingame.org. 14. ADJOURNMENT Notice: Any attendees wishing accommodations for disabilities please contact the City Clerk at (650)558-7203 at least 24 hours before the meeting. A copy of the Agenda Packet is available for public review at the City Clerk's office, City Hall, 501 Primrose Road, from 8:00 a.m. to 5:00 p.m. before the meeting and at the meeting. Visit the City's website at www.burtingame.org. Agendas and minutes are available at this site. NEXT CITY COUNCIL MEETING 2019-20 Mid -Year Budget Study Session Wednesday, March 11, 2020 at 6:30 p.m. in Council Chambers Next regular City Council Meeting - Monday, March 16, 2020 VIEW REGULAR COUNCIL MEETING ONLINE AT www.burlingame.org/videos Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at the Water Office counter at City Hall at 501 Primrose Road during normal business hours. City or Burlingame Page 3 Printed on 2/272020 Agenda Item 8a Meeting Date: 03/02/2020 BURLINGAME CITY COUNCIL Unapproved Minutes Regular Meeting on February 18, 2020 STUDY SESSION a. DISCUSSION OF BUILDING ELECTRIFICATION AND ELECTRIC VEHICLE REACH CODES Sustainability Coordinator Sigalle Michael began her presentation by highlighting two recent articles in the New York Times. One discussed a Washington city's decision to ban natural gas in existing homes, and the other highlighted new all -electric ADOBE building in Silicon Valley. Sustainability Coordinator Michael stated that in 2010, the City passed a reach code. She noted that this was prior to the State's adoption of CALGreen. She explained that the City's 2010 reach code went beyond the State's building code at the time by requiring buildings to be 15% more efficient and implementing a checklist. She stated that after the passage of the City's reach code, the State adopted CALGreen, which surpassed the City's requirements. Therefore, she noted that a similar story could now happen with the City reaching beyond the State's requirements until the State surpasses the City's reach code. Sustainability Coordinator Michael stated that at the last study session, Council voiced three concerns: 1. Council didn't want to risk losing new housing units as a result of the reach codes. Sustainability Coordinator Michael stated that staff held two stakeholder meetings with developers. At the meetings, a developer from each sector attended (single family, multi -family, and commercial). She reviewed some of the comments that staff heard including: • all -electric over 25,000 square feet could be challenging • they are cautious about committing to EV charging technology while the technology is still evolving • automated mechanical garages can't install EV chargers • need to be competitive with development in neighboring cities • residents want to cook with natural gas 2. Council asked if the electric load can handle the reach codes. Sustainability Coordinator Michael stated that she learned from Peninsula Clean Energy ("PCE") that this shouldn't be a problem. 3. Council asked if all -electric is cost effective. 1 Burlingame City Council February 18, 2020 Unapproved Minutes Agenda Item 8a Meeting Date: 03/02/2020 Sustainability Coordinator Michael stated that to enact a reach code, the City must prove cost- effectiveness to the California Energy Commission. Sustainability Coordinator Michael noted that she also presented options to the Citizens Environmental Council ("CEC") and received a clear message: Do more quicker. Sustainability Coordinator Michael discussed what other cities have done. She noted that Morgan Hill enacted a natural gas ban. She stated that Brisbane, Mountain View, Pacifica, Palo Alto, San Jose, and San Mateo County have all adopted the Menlo Park approach, which is for all -electric with limited gas use. Next, Sustainability Coordinator Michael reviewed staff s proposal for single-family homes and townhouses, multi -family buildings, and commercial buildings. She noted that staff s proposals take into consideration comments from the Council, developers, environmental advocates, and PCE. Staff s proposals for each building type included requirements for all -electric, solar, and EV infrastructure. Sustainability Coordinator Michael reviewed staff s proposal for single-family homes and townhouses. She stated that staff is proposing requiring new buildings to be all -electric, with a natural gas exception for cooking with prewiring. She noted that other cities have enacted a natural gas exception for cooking. However, a lot of the benefit in all -electric is avoiding the natural gas hook up. She stated that State legislation now requires solar on new single-family homes. She added that for EV infrastructure, staff is proposing requiring one level 2 and one standard outlet. She noted that these proposals were vetted through the developers and that the developers felt that the proposal was acceptable. Next, Sustainability Coordinator Michael reviewed staff s proposal for multi -family buildings. She stated that staff is proposing all -electric with a natural gas exception for cooking with prewiring. She noted that Menlo Park doesn't allow natural gas for cooking in multi -family buildings. However, the developers made it clear to staff that they want to stay competitive with neighboring cities and therefore want to keep natural gas for cooking. She stated that staff also heard that it could be difficult to require electric water heating, and therefore, if the developer can show it is infeasible, the City could provide an exemption. She noted that staff proposes following the PCE model for solar, which requires a minimum 3kw system with exemptions for limited solar zones. She explained that for EV infrastructure, staff worked closely with the developers to ensure that the requirement was obtainable. Therefore, staff is suggesting that 10% of units, not parking spaces, have level 2, and 90% have standard outlets. She noted that for EV infrastructure on multi -family buildings, staff created an exemption if the developer can show that the infrastructure would exceed $4,500 a parking space. Councilmember Colson stated that what she heard was that it wasn't just the cost but also the space requirement for EV-enabled parking spaces. Sustainability Coordinator Michael noted that this was discussed in the staff report. She explained that PCE took out any space requirements, and therefore it is only the regular stall requirements. Councilmember Colson stated that what she heard from developers is that the EV infrastructure proposal could require the need for additional transformers. She explained that a transformer could take up five to six 2 Burlingame City Council February 18, 2020 Unapproved Minutes Agenda Item 8a Meeting Date: 03/02/2020 parking spaces. Therefore, if the developer needed to decrease the number of parking spaces, they could lose some units, and the project wouldn't pencil out. Councilmember Ortiz asked if he was correct that because the water table is shallow in parts of Burlingame, the transformers couldn't be underground, and therefore they would need to be at ground level. Sustainability Coordinator Michael replied in the affirmative and noted that this was part of the reason for the exemption. She added that she would have further discussions with developers about transformers and their concerns. Vice Mayor O'Brien Keighran asked how staff came to $4500 per parking space for an exemption. PCE Director of Energy Programs Rafael Reyes stated that the $4500 price tag is an extrapolation from the CALGreen. He added that PCE vetted the EV infrastructure proposal and $4500 price tag with developers and that the developers felt comfortable with the number. Vice Mayor O'Brien Keighran asked if PCE considered if the price tag for the exemption should vary depending on the size of the project. Mr. Reyes stated that they had not looked at this possibility but had conducted a thorough cost-effectiveness study and felt comfortable with the number. Councilmember Brownrigg stated that whatever constraints people think currently exist for EV infrastructure will be moot in five to ten years. He explained that he believed there will be so many electric vehicles that buildings will have to be retrofitted to accommodate them. Additionally, he stated that buildings would need more level 2 chargers. He noted that level 1 chargers are not powerful enough to charge a vehicle for a full day's use. Sustainability Coordinator Michael stated that they heard from developers that because technology is evolving, they shouldn't fully commit to either level. Mr. Reyes added that PCE studied the commute patterns in the County, and the average commute range is under 30 miles, which could be accommodated by a level 1 charger. He stated that they estimate that 60% of EV drivers are using level 1 in their homes. Next, Sustainability Coordinator Michael reviewed staff s proposal for commercial buildings. She stated that staff is proposing all -electric, with a natural gas exception for cooking in restaurants with prewiring. She discussed exempting life sciences buildings and buildings over 100,000 square feet from the all -electric requirement. She stated that commercial buildings would be required to have a minimum 3kw system for solar with exemptions for limited solar zones. She explained that for EV infrastructure, staff was proposing that 10% of parking would have level 2 charging, 10% standard outlet, and one fast charger for buildings with more than 100 spaces. She noted that staff proposed an exemption for mechanical parking systems and areas without power supply. Vice Mayor O'Brien Keighran asked if hospitals would be exempt from the all -electric requirement. Sustainability Coordinator Michael replied in the affirmative. Mayor Beach stated that the Council just reviewed the proposed development at 1095 Rollins Road that included EV infrastructure on stackers. Sustainability Coordinator Michael stated that this is new Burlingame City Council February 18, 2020 Unapproved Minutes Agenda Item 8a Meeting Date: 03/02/2020 technology. She noted that while she hadn't reviewed the project, from what she heard the project didn't meet staff s proposed EV infrastructure requirements. Sustainability Coordinator Michael discussed the reach codes in conjunction with the Climate Action Plan. She stated that all -electric would almost double the reductions that the City is expecting from their current CAP measures in their respective categories. She explained that the reason that building electrification takes it that much further is because the existing electrification measures rely on voluntary compliance. Mayor Beach asked if the doubling of GHG reductions is with a total ban of natural gas or with the proposed reach codes. Sustainability Coordinator Michael stated that it was reflective of the proposed reach codes. Mayor Beach asked if the City did ban natural gas, was there a sense of what additional impact the City would see. Sustainability Coordinator Michael stated that while she didn't have the exact numbers, natural gas for cooking is the smallest part of natural gas usage, so it would be a small impact. Ms. Michael reviewed the next steps. She stated that based on Council's comments, staff would bring back a reach code for adoption, which, if adopted, would be reviewed by the California Energy Commission. Mayor Beach asked SummerHill Vice President of Development Elaine Breeze how all -electric could affect developments that are in the flood zone. Ms. Breeze stated that the garage is elevated to be out of the flood zone, and this would be where the transformers are located. She noted that staff and PCE have been receptive to her concerns but that building all -electric in a flood zone under height restrictions and parking requirements remains a concern. Mayor Beach discussed potential tradeoffs to allow for all -electric in the flood zone including allowing the transformers on the roof or a reduction in the parking requirement. She noted that all -electric isn't infeasible; it is that the restrictions under the code that might not allow for it. Ms. Breeze replied in the affirmative. Vice Mayor O'Brien Keighran asked what the threshold is in asking smaller multi -dwelling projects to do all -electric versus larger projects. Ms. Breeze discussed alternatives for heating and stated that she didn't believe that smaller developments would need to get a large transformer. Vice Mayor O'Brien Keighran asked if electric fireplaces radiate enough heat as compared to gas fireplaces. Ms. Breeze stated that she didn't know. Mayor Beach opened the item up for public comment. Mike McCord voiced his support for reach codes and asked Council not to allow for an exception for cooking. Christine Yballa voiced support for reach codes as it is an easy way to reduce the City's greenhouse gas emissions. 4 Burlingame City Council February 18, 2020 Unapproved Minutes Agenda Item 8a Meeting Date: 03/02/2020 Bruce Nagel voiced support for the reach codes and asked the Council not to allow for any exemptions. Robert Whitehair voiced concern about exemptions to reach codes. He noted that he believed that exemptions would become the norm and would limit the benefits of a reach code. Lisa Happich discussed the climate crisis and stated that this is the most important issue that the City is now facing. Terry Nagel stated that 15 cities in Silicon Valley have approved reach codes. She urged the Council to review Mountain View's reach code and not to adopt exceptions. James Tuleya, the Chair of Carbonfree Silicon Valley, stated that he has been in the energy efficiency business for 12 years. He talked about the increased costs that could be associated with creating a cook exception. Dashiell Leeds discussed the climate crisis and his concerns about building more gas pipelines. Sharon Refvem voiced her support for the reach code. John Andary, a professional mechanical engineer, discussed the possibilities for developers under the reach codes. He urged the Council to adopt a reach code that didn't include an exception for natural gas cooking. Carol Vollem stated that the climate crisis is encroaching on the world much more aggressively than expected and that cities must take action. Diane Bailey discussed building a city's resiliency by encouraging solar and electric vehicles. She noted that electric vehicles can be used during a power outage to power critical services in one's home. Chris Detjen, an architectural designer, stated that the opportunity for the City to take leadership on green building lies with commercial buildings. He noted that he is opposed to exceptions and that the large buildings that help shape a community should be all -electric and efficient. Scott Shell, a principal at an architectural firm, requested that the Council not have an exemption for multi- family buildings to have gas water heating. Mayor Beach closed public comment. Vice Mayor O'Brien Keighran asked what the necessary power supply would be if the City adopts an ordinance for all -electric, and would there be enough. Mr. Reyes stated that PCE started estimating the need in the near -term and found that in 2025, there is more load associated with electric vehicles than there is with electric buildings. He stated that there is about a 3% increase for electric vehicles in 2025. He discussed that the cost of solar has declined, and therefore it is likely that it will be extremely cheap to power large amounts of electric loads in the future. Burlingame City Council February 18, 2020 Unapproved Minutes Agenda Item 8a Meeting Date: 03/02/2020 Vice Mayor O'Brien Keighran asked PCE for data on the increase in electricity. Mr. Reyes replied in the affirmative. Councilmember Ortiz stated that he liked staff s proposal for single-family homes, multi -family buildings, and commercial buildings, but would remove the exception for natural gas cooking. He added that he supported staff s proposal concerning EV infrastructure. He noted that if the EV proposal was more stringent, he did have concern that it would be cost prohibitive for developers. Councilmember Brownrigg stated that he concurred with Councilmember Ortiz. He noted that he would remove the exemption for life science buildings because of testimony from some of the professionals that it was unnecessary. He stated that he thought the Council should consider a conditional use permit for restaurants to use natural gas. Councilmember Colson stated that she supported staff s proposal. She noted her concern about gas fireplaces. She discussed the importance of educational outreach to developers to inform them of the benefits of all -electric. She added that if the City is going to carve out an exception for natural gas for cooking, that the City should do the same for gas fireplaces. Councilmember Colson discussed Brisbane's incentive program to promote all -electric. She asked staff to provide Council with details on the program. Vice Mayor O'Brien Keighran stated that overall, she agrees with most of staffs proposals. She asked about the Restaurant Association's lawsuits against Berkeley and Windsor. City Attorney Kane stated that both lawsuits are in their early stages and that the Windsor lawsuit was from developers. Vice Mayor O'Brien Keighran asked staff to keep the Council apprised of the two lawsuits. Vice Mayor O'Brien Keighran stated that regarding single-family homes, she is hesitant about banning natural gas for cooking. She asked that staff look into incentive programs including rebates to encourage the community to move to all -electric for cooking. Vice Mayor O'Brien Keighran voiced concern with electric water heating for multi -family buildings. She explained that she would like to learn more about electric water heating and what is available to developers. Vice Mayor O'Brien Keighran echoed Councilmember Colson's concerns about electric fireplaces. Vice Mayor O'Brien Keighran asked staff to conduct a survey through the e-newsletter to ascertain how the community feels about all -electric versus natural gas, the variety of options that were presented, and what exemptions people felt the City should offer. Mayor Beach asked if the reach codes would only apply to brand new construction. CDD Gardiner replied in the affirmative. He stated that the staff would want to clarify what is meant by new construction. He noted that currently in the City's code, new construction is considered 50% or more of the replacement 6 Burlingame City Council February 18, 2020 Unapproved Minutes Agenda Item 8a Meeting Date: 03/02/2020 value. Therefore, new construction might include a second story addition, and he believed that the reach code's intent was to focus on ground up construction. Mayor Beach thanked staff, developers, and the community for engaging in this conversation. She stated that she leaned into all -electric with no natural gas for cooking in single family homes, multi -family buildings, and commercial. She explained that she believed big development is hard for the community, but if the City could tell the community that the new commercial building is 100% green, it would go a long way. She noted that she could see an exemption for hospitals. Mayor Beach stated that the North Rollins Road neighborhood could be a shining example of a green neighborhood. Councilmember Colson stated that if the City is going in the direction of eliminating natural gas and not providing exceptions for cooking, then it should be for remodels too. She discussed incentivizing people through streamlined permitting or through rebates. Councilmember Brownrigg talked about his own experience with building a house and the amount of time they lost because of PG&E doing gas deconstruct and reconstruct. He stated that if someone had told him he could save three to four months in construction by going all -electric, he would have. Councilmember Brownrigg stated that he would be willing to reduce residential impact fees to help compensate developers for taking on new technology. City Manager Goldman stated that there didn't seem to be a consensus from the Council on direction. Therefore, she explained that staff would review Council's comments and come back with a staff report. Mayor Beach stated that she believed she did hear three in favor of all -electric even for cooking on new construction. City Manager Goldman replied in the affirmative but noted that Council had asked for additional information on several issues. Vice Mayor O'Brien Keighran asked that developers for single-family homes, multi -family buildings, and commercial buildings attend the next meeting that this matter is agendized. City Manager Goldman stated that staff would reach out to developers in the community. Councilmember Colson asked if she was correct that the two projects in the pipeline on Rollins Road wouldn't be under the City's reach code if adopted. City Attorney Kane replied in the affirmative and explained that plans that have been deemed complete under the existing zoning provision would be going through the pipeline on the existing code. 1. CALL TO ORDER A duly noticed meeting of the Burlingame City Council was held on the above date in the City Hall Council Chambers at 7:27 p.m. 7 Burlingame City Council February 18, 2020 Unapproved Minutes Agenda Item 8a Meeting Date: 03/02/2020 2. PLEDGE OF ALLEGIANCE TO THE FLAG The pledge of allegiance was led by Mayor Beach. 3. ROLL CALL MEMBERS PRESENT: Beach, Brownrigg, Colson, O'Brien Keighran, Ortiz MEMBERS ABSENT: None 4. REPORT OUT FROM CLOSED SESSION There was no closed session. 5. UPCOMING EVENTS Mayor Beach reviewed the upcoming events taking place in the city. 6. PRESENTATIONS There were no presentations. 7. PUBLIC COMMENT There were no public comments. 8. CONSENT CALENDAR Mayor Beach asked the Councilmembers and the public if they wished to remove any item from the Consent Calendar. Vice Mayor O'Brien Keighran recused herself from 8b. Councilmember Brownrigg pulled item 8i. Councilmember Brownrigg made a motion to approve 8a, 8b, 8c, 8d, 8e, 8f, 8g, 8h, and 8j; seconded by Councilmember Ortiz. The motion passed unanimously by voice vote, 5-0 (with the note that the vote on item 8b was 4-0-1 as Vice Mayor O'Brien Keighran recused herself from this item). a. APPROVAL OF CITY COUNCIL MEETING MINUTES FOR FEBRUARY 3, 2020 City Clerk Hassel -Shearer requested Council approve of the City Council Meeting Minutes for February 3, 2020. b. ADOPTION OF A RESOLUTION RECOGNIZING THE IMPORTANCE OF THE 2020 CENSUS AND ENCOURAGING RESIDENTS OF THE COUNTY OF SAN MATEO TO 8 Burlingame City Council February 18, 2020 Unapproved Minutes Agenda Item 8a Meeting Date: 03/02/2020 PROMOTE AND COMPLETE THE CENSUS TO ENSURE A FAIR, ACCURATE, AND COMPLETE COUNT Vice Mayor O'Brien Keighran recused herself from voting on this item as she drafted the Census resolution for the San Mateo County Board of Supervisors. City Clerk Hassel -Shearer requested Council adopt Resolution Number 018-2020. e. ADOPTION OF A RESOLUTION AWARDING A CONSTRUCTION CONTRACT TO RANGER PIPELINES, INC. FOR THE FY 2019-20 CITYWIDE SANITARY SEWER IMPROVEMENTS PROJECT IN THE AMOUNT OF $1,086,420, AND APPROVING A PROFESSIONAL SERVICES AGREEMENT WITH BELLECCI 7 ASSOCIATES FOR CONSTRUCTION MANAGEMENT SERVICES IN THE AMOUNT OF $150,121 DPW Murtuza requested Council adopt Resolution Number 019-2020 and Resolution Number 020-2020. d. ADOPTION OF A RESOLUTION AWARDING A CONSTRUCTION CONTRACT TO VALENTINE CORPORATION FOR THE 1740 ROLLINS ROAD AND 842 COWAN ROAD PUMP STATIONS FLAP GATES REPLACEMENT PROJECT IN THE AMOUNT OF $229,369 DPW Murtuza requested Council adopt Resolution Number 021-2020. e. ADOPTION OF AN ORDINANCE REZONING PROPERTY FROM C-1 TO R-4 FOR A NEW SIX -STORY, 150-UNIT RESIDENTIAL APARTMENT DEVELOPMENT LOCATED AT 1095 ROLLINS ROAD (FATTORIA E MARE SITE) CDD Gardiner requested Council adopt Ordinance Number 1973. f. OPEN NOMINATION PERIOD TO FILL ONE VACANCY ON THE PLANNING COMMISSION City Manager Goldman requested Council open the nomination period to fill one vacancy on the Planning Commission. g. APPROVAL OF OUT-OF-STATE TRAVEL FOR THE MAYOR, CITY MANAGER, AND PUBLIC WORKS DIRECTOR RELATED TO FEDERAL ADVOCACY FOR A BROADWAY GRADE SEPARATION PROJECT GRANT City Manager Goldman requested Council approve of out-of-state travel for the Mayor, City Manager, and Public Works Director related to federal advocacy for a Broadway Grade Separation Project Grant. 9 Burlingame City Council February 18, 2020 Unapproved Minutes Agenda Item 8a Meeting Date: 03/02/2020 h. ADOPTION OF A RESOLUTION OF SUPPORT FOR THE CITY'S APPLICATION FOR $125 MILLION FROM THE U.S. DEPARTMENT OF TRANSPORTATION INFRASTRUCTURE FOR REBUILDING AMERICA (INFRA) DISCRETIONARY GRANT PROGRAM City Manager Goldman requested Council adopt Resolution Number 022-2020. i. ADOPTION OF A RESOLUTION APPROVING A PROFESSIONAL SERVICES AGREEMENT WITH W-TRANS FOR ENGINEERING DESIGN SERVICES FOR THE OAK GROVE AVENUE AND CAROLAN AVENUE TRAFFIC SIGNAL AND RELATED INTERSECTION IMPROVEMENTS IN THE AMOUNT OF $129,250 Councilmember Brownrigg stated that he received input on this item from a member of the public that believes the City is on the wrong track with regards to the intersection at Oak Grove Avenue and Carolan Avenue. He asked about next steps for this project. DPW Murtuza stated that staff conducted a preliminary traffic analysis to review options to address the traffic impact at the intersection. He explained that in order to improve the flow of traffic across the railroad tracks, it was suggested that traffic signals be installed. Councilmember Brownrigg asked where the City was in the process of the project. DPW Murtuza stated that the project was discussed at the Traffic, Safety & Parking Commission, and the Commission unanimously supported moving forward with installing traffic signals. He explained that staff would be designing and implementing the project. Councilmember Brownrigg asked if a hearing on the item was conducted at the Traffic, Safety & Parking Commission and if members of the public were given an opportunity to speak. DPW Murtuza replied in the affirmative. Mayor Beach asked if she was correct that the staff report isn't for consulting services but for the final design of the traffic signals. DPW Murtuza replied in the affirmative. Mayor Beach asked if westbound on Oak Grove would be addressed in this project. DPW Murtuza replied in the affirmative. Councilmember Ortiz thanked the City for improving the intersection as he has long complained about it. Mayor Beach opened the item up for public comment. No one spoke. Councilmember Brownrigg made a motion to adopt Resolution Number 023-2020; seconded by Councilmember Ortiz. The motion passed unanimously by voice vote, 5-0. j. ADOPTION OF A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH LOS LOZA LANDSCAPING FOR THE INSTALLATION OF THE MURRAY NATURAL PLAYGROUND FOR $228,000, CITY PROJECT NO. 85400 10 Burlingame City Council February 18, 2020 Unapproved Minutes Agenda Item 8a Meeting Date: 03/02/2020 Parks and Recreation Director Glomstad requested Council adopt Resolution Number 024-2020. 9. PUBLIC HEARINGS a. REQUEST FOR AMENDMENT TO A CONDITIONAL USE PERMIT TO ADD SALES OF ALCOHOLIC BEVERAGES TO A MINI -MART AT AN EXISTING GASOLINE SERVICE STATION AND A FINDING OF PUBLIC CONVENIENCE AND NECESSITY (PCN) PURSUANT TO SECTION 23958.4 OF THE CALIFORNIA BUSINESS AND PROFESSIONS CODE, RELATED TO A REQUEST FOR A TYPE 20 (OFF -SALE BEER AND WINE) ALOCHOLIC BEVERAGE SALES PERMIT ISSUED THROUGH THE CALIFORNIA ALCHOLIC BEVERAGE CONTROL BOARD (ABC), AT 1147 ROLLINS ROAD CDD Gardiner stated that Gladys and Gus Greco, owners and operators of Gus 76, submitted an application for an amendment to the conditional use permit for a mini mart located at 1147 Rollins Road. The amendment is to allow the sale of alcoholic beverages, beer and wine, for off -site consumption. CDD Gardiner stated that the application will require the determination of Public Convenience and Necessity ("PCN") to sell beer and wine for off -site consumption. He explained that the PCN must be reviewed and acted on by the Council. He stated that the Burlingame Police Department reviewed the application for the license, and the findings are included with the staff report. He explained that the Police Department supports a finding of "public convenience and necessity" based, in part, upon the following findings: • A review of the police -related calls for service at Gus 76 showed minimal calls • Gus 76 provides a variety of other grocery and sundry items to serve residents and visitors • There are no parks or schools in the area The Police Department recommended five conditions be forwarded to ABC for its consideration prior to issuance of the license (while not specifically stated at the meeting, the Council discussed the recommendations, and therefore they have been included below): 1. The licensee(s) shall be responsible for maintaining, free of litter, the area in front of and adjacent to the premises over which they have control. 2. Graffiti shall be removed from the premises and all parking lots under the control of the licensee(s) within seventy-two hours of application 3. The exterior of the premises shall be equipped with lighting of sufficient power to illuminate and make easily discernible the appearance and conduct of all persons on or about the premises. Additionally, the position of such lighting shall not disturb the normal privacy and use of any neighboring residences. 4. Electronic video surveillance shall be maintained at the premises, minimally covering entrances and exits. Footage shall be maintained for at least 30 days. 5. Loitering (loitering is defined as "to stand idly about; linger aimlessly without lawful business") is prohibited on any sidewalks or property on any sidewalks or property adjacent to the licensed premises under the control of the licensee(s). 11 Burlingame City Council February 18, 2020 Unapproved Minutes Agenda Item 8a Meeting Date: 03/02/2020 CDD Gardiner stated that the Planning Commission reviewed the application on January 13, 2020, and recommended approval. He added that the Planning Commission agreed with staffs suggestion to remove the condition that restricted the sale of hot food to be sold as typical of convenience markets. Councilmember Colson asked if there were any other potential merchants in that area that might request a license to sell alcohol. CDD Gardiner stated that based on what is already in existence and what the zoning would allow, he would not foresee additional requests. Councilmember Colson asked if Peninsula High School was considered in the proximity of the mini mart. CDD Gardiner stated that he didn't know the exact location of the high school but believed it was outside the range. Councilmember Colson asked if any of the merchants on Broadway expressed concern over this application. CDD Gardiner stated that per the code, staff sent notices to properties within 300 feet of the area and therefore didn't include Broadway. Accordingly, while he hadn't received any comments from Broadway, he was unsure if they knew of the application. Mayor Beach discussed the condition that the sale of beer and wine be for off -site consumption. She noted that this meant that alcohol wouldn't be consumed, legally, on -site. She asked if this was up to the property owner to enforce. CDD Gardiner replied in the affirmative. Vice Mayor O'Brien Keighran asked if there were an increase in complaints, could the City revoke the license. City Attorney Kane replied that the State regulators are quick to respond to habitual malfeasance, and it would be the State regulating the license. Vice Mayor O'Brien Keighran noted that one of the reasons she felt comfortable with approving the amendment is because the Police Chief has reported that there haven't been many if any issues at the property. She voiced concern that if there was an uptick in issues that the City wouldn't have any say on revoking the license. City Attorney Kane replied that the license is issued by the State, and therefore it is not the City's to revoke. Councilmember Brownrigg stated that this isn't the first time that the City has authorized sale of alcoholic beverages for off -site consumption. He asked about the requirement for electronic video surveillance and if it was a common practice of the City. Police Chief Matteucci stated that it is a standard requirement in the PCNs. He noted that Gus 76 already has video surveillance. Councilmember Brownrigg asked if the defining characteristic for why the Police Chief requires electronic video surveillance is that the store is selling alcohol. Police Chief Matteucci replied in the negative. Councilmember Brownrigg stated that in the future he would like the Council to discuss the City's policy on video surveillance and facial recognition technology. 12 Burlingame City Council February 18, 2020 Unapproved Minutes Agenda Item 8a Meeting Date: 03/02/2020 City Attorney Kane explained that when the video surveillance is controlled by a private owner, the police must ask to review the video or obtain a subpoena. Therefore, she noted that there are some protections in place for direct government access. Councilmember Colson discussed the importance of the applicant reviewing drivers' licenses prior to sale of alcohol to ensure that a minor doesn't purchase. Mayor Beach opened the public hearing. John Greco, the owner of Gus 76, stated that they have always worked with the Police Department and given them access to their cameras. He discussed the practices that his store has in place to prevent sales to minors and noted that he could lose all three of his licenses if he sold to minors. He thanked the Police, staff, and the Council for their consideration of his application. Mayor Beach closed the public hearing. Councilmember Colson made a motion to adopt Resolution Number 025-2020; seconded by Vice Mayor O'Brien Keighran. The motion passed unanimously by voice vote, 5-0. 10. STAFF REPORTS a. ADOPTION OF A RESOLUTION APPROVING PERSONNEL CHANGES, AMENDING THE PART-TIME EMPLOYEE SALARY & BENEFIT PLAN, AMENDING THE DEPARTMENT HEAD AND UNREPRESENTED COMPENSATION AND BENEFIT PLAN, AND APPROVING THE CITY OF BURLINGAME PAY RATES AND RANGES (SALARY SCHEDULE) HR Director Morrison stated that before Council was a resolution to approve personnel changes in the Community Development, Human Resources, Public Works, and City Manager's Office. She noted that the resolution would also approve amendments to relevant compensation and benefit plans and adopt a salary schedule. HR Director Morrison explained that the City has carefully reviewed all increases in staffing levels in consideration of a financially sustainable level of staffing that is adequate to meet the ever-increasing demands on City staff time. She noted that the Council has approved conservative increases in headcount while being mindful of budget impacts, unfunded pension and benefit liabilities, and overall City costs. HR Director Morrison stated that as a result of regulatory changes and an increase in demand for services in transportation, building, planning, and housing, current staffing levels are inadequate to deal with the workload. She added that human resources staffing is inadequate to attract, retain, develop, and support the workforce. 13 Burlingame City Council February 18, 2020 Unapproved Minutes Agenda Item 8a Meeting Date: 03/02/2020 HR Director Morrison stated that Assembly Bill 5 went into effect on January 1, 2020. The legislation requires the City to adopt new standards for the use of contract labor. AB 5 assumes an individual is an employee rather than a contractor unless a strict test is satisfied. HR Director Morrison explained that City Attorney Kane and she conducted a Citywide analysis of the current uses of contractor staff and determined many of the contractors the City currently uses, particularly in Building and Planning, do not meet the new standard. As a result, these contractors will be unable to provide contract services for the City under the new regulations, and permanent staff will need to be hired. She explained that the decrease in budget costs will help offset the cost of hiring new staff. HR Director Morrison stated that she reviewed long-term casual employees who have been with the City for many years. She explained that these positions support Council goals and initiatives (for example the Sustainability Coordinator and the Assistant to the City Manager). Therefore, she identified three casual positions that are not temporary and should be reclassified to regular part-time positions. HR Director Morrison stated that the proposed changes will increase the City's workforce by 2.25 FTEs. The positions are deemed necessary to effectively carryout the City's priorities and meet the City's service level needs. Councilmember Brownrigg asked for clarification on how 2.25 FTEs equates to an annual budget impact of $550,000. HR Director Morrison stated that in reality it's a budget impact of 6.75 FTEs. She explained that the contractors that currently exist will be replaced with FTEs, and with that there will be pension and benefit costs. She noted that the City would be adding a Senior Public Works Inspector, Program Manager, and a Human Resources Analyst. City Manager Goldman stated that on pages four to five of the staff report there is a summary of all the changes to positions. She reviewed the different positions that are being affected under the AB 5. Mayor Beach asked about the process for some of the positions and whether the positions would be announced or if the contract employees would be slotted into the positions. HR Director Morrison replied that the City's recruitment process would be followed. City Manager Goldman added that the City conducts oral boards, written tests (when necessary), and interviews for all positions. Councilmember Brownrigg asked if the City was upscaling employees as a result of AB 5. City Manager Goldman replied in the negative. She explained that a few things were happening to ensure the City's compliance with the law including: • taking existing temporary employees and making them permanent part-time employees • adding 2.25 FTE new employees. • converting the contract labor positions into permanent full-time positions. Vice Mayor O'Brien Keighran stated that AB 5 may have forced other cities to hire new people and cost a lot of money. 14 Burlingame City Council February 18, 2020 Unapproved Minutes Agenda Item 8a Meeting Date: 03/02/2020 Councilmember Colson asked if the net cost is $550,000. HR Director Morrison replied in the affirmative. Councilmember Colson asked if this was after the reduction in contract costs. HR Director Morrison replied in the affirmative. City Manager Goldman stated that she was just at the statewide City Managers' meeting, and AB 5 was a main topic as a lot of people are trying to figure out how to handle this issue. Mayor Beach opened the item up for public comment. No one spoke. Vice Mayor O'Brien Keighran made a motion to adopt Resolution Number 026-2020; seconded by Councilmember Ortiz. The motion passed unanimously by voice vote, 5-0. 11. COUNCIL COMMITTEE AND ACTIVITIES REPORTS AND ANNOUNCMENTS a. MAYOR BEACH'S COMMITTEE REPORT b. COUNCILMEMBER COLSON'S COMMITTEE REPORT 12. FUTURE AGENDA ITEMS Councilmember Ortiz stated that Congresswoman Speier proposed legislation that would give airports more control over flight operations. He asked that Council agendize a discussion for a resolution in support of her legislation. The Council agreed to agendize the matter. Vice Mayor O'Brien Keighran asked about scheduling the discussion on short-term rentals. Staff advised Council that they are fitting it into the queue with other items that require urgent attention. 13. ACKNOWLEDGEMENTS The agendas, packets, and meeting minutes for the Planning Commission, Traffic, Safety & Parking Commission, Beautification Commission, Parks and Recreation Commission, and Library Board of Trustees are available online at www.burlin a� me.org. 14. ADJOURNMENT Mayor Beach adjourned meeting at 8:21 p.m. in memory of Sandy Towle. Respectfully submitted, Meaghan Hassel -Shearer City Clerk 15 Burlingame City Council February 18, 2020 Unapproved Minutes BURLINGAME To: Date: From: Subject: STAFF REPORT Honorable Mayor and City Council March 2, 2020 AGENDA NO: 8b MEETING DATE: March 2, 2020 Carol Augustine, Finance Director—(650) 558-7222 Quarterly Investment Report, Period Ending December 31, 2019 RECOMMENDATION Staff recommends that the City Council receive and approve the City's investment report through December 31, 2019. BACKGROUND This report represents the City's investment portfolio as of December 31, 2019. The report includes all invested City funds with the exception of bond proceeds, the City's account with the California Employers' Retiree Benefit Trust Fund (CERBT), which is used to pre -fund the City's retiree medical obligations, and the §115 trust account with the Public Agency Retirement Services (PARS) Pension Rate Stabilization Program. All other investments are covered by and in compliance with the City's adopted Statement of Investment Policy. DISCUSSION The City's investments are guided by the Statement of Investment Policy (the "Policy"), which is reviewed and approved by the Council annually. The Policy was last approved by the City Council on June 3, 2019. The Policy directs that investment objectives, in order by priority, are safety, liquidity, and return. This conservative approach ensures assets are available for use while also allowing the City to earn additional resources on idle funds. The City utilizes a core portfolio of investments managed by the City's investment advisor, PFM Asset Management (PFM), and also maintains funds invested in the State's Local Agency Investment Fund (LAIF) and the California Asset Management Program (CAMP) to achieve its investment goals. CURRENT MARKET CONDITIONS The U.S. Treasury yield curve steepened during the fourth quarter and ultimately un-inverted by December 31, 2019, as short-term yields fell in response to cuts to the fed funds target rate. At the same time, intermediate- and longer -term yields increased as investors responded favorably to positive economic data and the announcement of a phase one trade deal between the U.S. and China. This steepening effect on the curve is evidenced by the spread between the 3-month and 10-year Treasuries, which began the quarter at -14 basis points (-0.14%) and finished the quarter at +11 basis points (+0.11 %). 1 Investment Report, December 31, 2019 March 2, 2020 After delivering two rate cuts in the third quarter, the Federal Reserve (the "Fed") cut the overnight fed funds target rate again in October to the new range of 1.50% to 1.75%. The dynamics supporting the rate cut were similar to those cited for the first two cuts, including weakness in global growth, ongoing trade uncertainty, and muted inflation. The Fed held rates steady through the end of 2019 and is expected to hold their target range steady over the near -term absent a "material reassessment" to their outlook. The U.S. economy grew a moderate 2.1% in the third quarter. The reading highlighted continued reliance on the American consumer as consumer spending, at 2%, accounted for nearly all of the growth. Government spending and residential housing were also positive contributors, while business investment was a detractor, marking the first back-to-back contraction in business investment of more than 1% since 2009. The U.S. labor market continued to grow at a solid pace in the final quarter of the year. The national economy added an average of 180,000 jobs in the fourth quarter, bringing the 2019 monthly average to 177,000 - short of the 223,000 average of monthly gains in 2018. The unemployment rate held steady at a 50-year low of 3.5% to round out the year. Inflation remains muted, showing no indication of substantial upward price pressure heading into the first quarter of 2020. Year -over -year growth in the core Consumer Price Index reached 2.3% in December, while the Fed's preferred inflation gauge, the core Personal Consumption Expenditure price index, dropped to 1.5% on a yearly basis in November, which is well below the Fed's 2% target. Price pressures on services were stable in the fourth quarter, while price pressures on goods drifted lower amid a de-escalation of trade tensions. U.S. manufacturing activity was mixed in the fourth quarter. The ISM manufacturing PMI survey remained in contractionary territory during the quarter and, in December, fell to its lowest level since 2009. A similar measure of manufacturing activity by Markit diverged, recovering from the slowdown in the third quarter and remaining in expansionary territory in the fourth quarter. Each index tells a slightly different story as the result of a difference in methodology, as ISM data surveys large multinational companies, leaving it more exposed to U.S. and China trade tensions that have weighed on confidence and business decisions. Bond yields ended the year down markedly across the curve, boosting fixed income returns, while the U.S. equity markets continued to rally to new record highs. The S&P 500 Index returned 9.1 % in the fourth quarter and 31.5% for the year. Investment Report, December 31, 2019 March 2, 2020 U.S. Treasury Yield Curve 3.5 % 3.0°% --._ _ 26% --- -- ----- i 2 000 — — ........ --------- December 31, 2019 . • _ • September 30 2019 1 i700 December 31 2010 Maturity Yield Curve History Maturity 3-Mo. 12/31/19 1.54% 9/30/19 1.81 % Change 0.27% 6-Mo. 1.58% 1.81 % 0.23% 1-Yr. 1.57% 1.74% 0.17% 2-Yr. 1.57% 1.62% 0.05% 3-Yr. 1.61 % 1.56% 0.0544 5-Yr. 1.69% 1.54% --0.15% 10-Yr. 1.92% 1.66% - 0.26°%_ 30-Yr. 2.39% 2.11 % 0.280 The City's cash, excluding bond proceeds, is pooled for investment purposes. As of December 31, 2019, invested funds totaled $190,961,898.93. These investments are assets of the City of Burlingame and include the General Fund, the enterprise funds (such as Water, Sewer, and Solid Waste), as well as various non -major funds. Note that the City's account with the California Employers' Retiree Benefit Trust Fund (CERBT), used to pre -fund the City's retiree medical obligations, is not included in this calculation of the City's investment portfolio. Similarly, funds held within the City's §115 trust account with the Public Agency Retirement Services (PARS) Pension Rate Stabilization Program are not included in this calculation of the City's investment portfolio. Main Investment Portfolio $119,338,146.66 Main Investment Portfolio - Cash Balance in Custody Account $195,898.33 CAMP Balance $41,271,982.19 LAIF Balance $30,155,871.75 190,961,898.93 PFM has continued to maintain a neutral duration stance relative to the benchmark. This neutral duration positioning is intended to minimize risk and maximize relative performance. At the end of the quarter, the main portfolio's duration was 2.52 years, in line with the benchmark's duration of 2.55 years. Factoring in liquid investments, such as LAIF and CAMP, the effective duration of the City's aggregate investments was 1.71 years. The City continues to benefit from a strategy of broad diversification, which serves to reduce the overall risk in the portfolio while providing for the opportunity for better returns over the long-term. In the municipal sector, taxable issuance volume remained elevated, thus presenting opportunities to increase the portfolio's allocation to this sector at attractive yields. In mid -October, PFM recommended selling U.S. Treasury notes and reinvesting the proceeds in $1.17 million par of a 3 Investment Report, December 31, 2019 March 2, 2020 high -quality, newly -issued State of California taxable general obligation bond at a yield of 1.92%. This represented an attractive yield pick-up of approximately 30 basis points (0.30%) over comparable -maturity U.S. Treasury notes at the time. After remaining quite low throughout the early part of 2019, yield spreads on negotiable bank certificates of deposit (CDs) approached historic norms during the fourth quarter, creating compelling buying opportunities. In early December, PFM recommended selling a Fannie Mae note with three years to maturity and reinvesting the proceeds in a negotiable bank CD at an attractive yield of 2.04%. PFM generally recommended U.S. Treasury obligations for rebalancing trades, and at the end of the quarter, the main portfolio maintained a 40% allocation to the U.S. Treasury sector. PFM will continue to monitor the markets and remain alert for compelling opportunities to swap out of existing U.S. Treasury holdings and into other higher yielding, high -quality sectors, as permitted by the City's Investment Policy. Please see below for a summary of transactions for the quarter ended December 31, 2019: Trade�.Principal Date 10/1/2019 10/3/2019 Purchase 9128282Y5 United States 60 1.50% $2,110,000 Treasury Inter -American 10/1/2019 10/3/2019 Sale 4581XOCD8 Development 13 1.80% $1,870,000 Bank 10/16/2019 10/24/2019 Purchase 13063DRJ9 California State 48 1.87% $1,170,000 Taxable GO 10/16/2019 10/24/2019 Sale 9128285D8 United States 48 1.57 °/o $1,110,000 Treasury 11/4/2019 11/6/2019 Purchase 9128283DO United States 60 1.62% $1,500,000 Treasury American 11/4/2019 11/6/2019 Sale 0258MOEE5 Express Co 3 2.03% $1,300,000 Note 12/2/2019 12/4/2019 Purchase 9128283J7 United States 60 1.67% $2,650,000 Treasury 12/2/2019 12/4/2019 Sale 22549LFR1 Credit Suisse 2 1.98% $1,030,000 Group Note 12/2/2019 12/4/2019 Sale 90275DHG8 UBS CGD Neg. 3 1.89% $1,500,000 12/5/2019 12/6/2019 Purchase 23341 VZT1 DNB ACSDA Neg. 36 2.04% $885,000 12/5/2019 12/6/2019 Sale 3135GOT94 FNMA 37 1.65% $825,000 12/13/2019 12/18/2019 Purchase 3136AJB54 FNMA CMBS 52 1.04% $845,000 12/13/2019 12/18/2019 Sale 912828WE6 United States 47 1.66% $850,000 Treasury 2 Investment Report, December 31, 2019 March 2, 2020 PFM continues to recommend a neutral duration positioning and a continued strategy of broad diversification across the high -quality sectors permitted by California Government Code and the City's Statement of Investment Policy. PFM continues to monitor the markets and recommend relative -value trades as appropriate in order to safely enhance the City's portfolio earnings. However, the priority will always be to maintain the safety and liquidity of the City's investments. PFM will continue to carefully monitor the creditworthiness of all current issues in the City's portfolio and any new issues recommended for purchase. As noted in the following pie charts, the City's investment portfolio, as of December 31, 2019, was heavily weighted towards the State Local Agency Investment Fund (LAIF), the AAAm-rated CAMP Fund, and high -quality (AA+ rated) federal agency and U.S. Treasury securities to maintain the focus on safety and liquidity. Investments By Security Type As of December 31. 2019 Local Agency _Investment Fund Corporate Notes (LAIF) 1200_t 16qu ti Asset -Backed SecuritiE 3°0 Negotiable Certificates of Deposit —' 6°b Supranationals N1unicipa0L4- __"--_ - 19'6 Federal Agency CI'll 0 1% Federal Agencies 1290 CAM P 22°'b Cash <10.0 asunes 25°b 5 Investment Report, December 31, 2019 March 2, 2020 Credit Quality of Investments As of December 31, 2019 NR (LAIF) 16% BBB+* 1% A 8% 43% n (CAMP) 22% A-1 (Short - Term) �% A-1+ (Short -Term) —�� 2% (Aaa)** 1% `I he "LsLf 3+.. category comprises securities rated in the category of A or better by Moody's and/or Fitch, which meets the credit rating criteria established in the City's Statement of Investment Policy. "The NR (Aaa) category comprises asset -backed securities that are not rated by S&P but are rated Aaa by Moody's. As of December 31, 2019, 38% of the City's funds were invested in very short-term liquid investments, 15% of the funds were invested with maturities between one day and two years, and 48% of the investment portfolio had a maturity ranging from two to five years. This distribution gives the City the necessary liquidity to meet operational and emergency cash needs while maximizing returns on funds not needed in the immediate future. The City's aggregate investments maintain an effective duration of 1.71 years and currently generate annual income of 2.22% before investment expenses. The City's funds are invested in high credit quality investments and continue to meet the City's goals of safety, liquidity, and yield/return. M Investment Report, December 31, 2019 March 2, 2020 40% 35% 30% 25% 20% Maturity Distribution As of December 31, 2019 10% 19% 20% 9% 5% 4% 1% ■0% _ Overnight One Day-6 6-12 Months 1-2 Years 2-3 Years 3-4 Years 4-5 Years Months As of December 31, 2019, the yield to maturity at cost on the main portfolio of securities was 2.35%. Including additional investments such as LAIF and CAMP, the average yield to maturity** on the City's aggregate investments was 2.22%. During the quarter, the main portfolio generated accrual basis earnings of $774,486.46. Market Value $190,961,898.73 Effective Duration 1.71 Years Average Credit Quality* AA Yield to Maturity" 2.22% 'Ratings by Standard & Poor's. Average excludes 'Not Rated' securities. "'Yield to maturity at cost. Calculated as a weighted average of the main portfolio's yield at cost as of 12131119, the LAIF quarterly apportionment rate for the quarter ended 12131119, and CAMP's monthly distribution yield as of 12131119. 7 Investment Report, December 31, 2019 March 2, 2020 The chart below compares the yield of the City's managed portfolio to the yields on the 2-year U.S. Treasury note, LAIF, and the San Mateo County Pool. As of December 31, 2019, the gross yield on the City's managed portfolio was 2.35%; net of PFM's investment advisory fees, the yield on the City's managed portfolio was 2.27%. Yield History December 31. 2015 - December 31. 2019 Portfolio Under Management LAIF 2-Year Treasury San Mateo County Pod 2.75% 2.50% 2.25% 2.00% 1.75% 1.50% 1.25% 1.00% 0.75% 0.50% 0.25% 0.00% 15 pp� 16 016 NCO 11 11 11 10 10 10 19 19 19 peg fee p,P� Pig fee pps p,�� fee pp� P�0 fee 2.35% 2.29% 1.78% 1.57% The following summary of cash and investment holdings held by each fund as of December 30, 2019, includes invested funds, debt service reserves, amounts held in overnight (liquid) accounts, the City's main checking account, and other operating funds: Cash and Investments by Fund As of 12/31/19 As of 09/30/19 Change $ I General Fund $ 28,737,133 $ 38,284,473 $ (9,547,340) Capital Project Funds 69,136,477 54,959,852 14,176,625 Internal Service Funds 21,237,426 20,226,809 1,010,617 Water Fund 19,774,618 20,286,248 (511,630) Sewer Fund 18,944,144 19,084,158 (140,014) Solid Waste Fund 4,650,325 4,665,558 (15,233) Parking Fund 11,327,855 11,240,611 87,244 Building Fund 12,948,464 12,072,822 875,642 Landfill Fund 1,994,755 1,921,187 73,568 Debt Service Fund 51,978,130 8,024,350 43,953,780 Subtotal, Operating Funds 240,729,327 190,766,068 49,963,259 Other Funds 14,530,061 15,632,032 (1,101,971) I Total Cash and Investments e $ 255,259,389 $ 206,398,101 $ 48,861,288 0 Investment Report, December 31, 2019 March 2, 2020 Cash holdings in the General Fund decreased in the second quarter of the 2019-20 fiscal year due largely to the significant amount of transfers out to other funds. Usually provided in the first quarter of the fiscal year, these annual transfers to fund capital improvement and debt service ($20.5 million) were delayed for input into the new financial system (go -live date October 1, 2019). The transfers out were partially offset by the annual transfers in from other funds ($2.5 million), largely to pay for administrative services provided by General Fund resources, per the adopted budget. Major property tax receipts of over $9.6 million that were received in December also offset the decrease in cash balances caused by the transfers. The $14.2 million increase in Capital Project Funds is due to the large transfers from the General Fund (nearly $15.7 million), offset by $1.5 million in capital spending, mainly for the Washington Park playground/sports court/picnic area project. The Debt Service Fund received transfers from other funds ($6.8 million) for principal and interest payments on governmental bonded debt as they become due. Actual debt service payments made in the quarter were $1.8 million. The large increase in the Debt Service Fund is due to the $38.9 million in bond proceeds from the 2019 Lease Revenue Bonds. These bonds were issued in December to provide a significant portion of the funding needed for the Community Center project. As for the performance of the City's trust funds, which adhere to different strategies than reflected in the City's Investment Policy for its main portfolio, the most recent statements are attached to this staff report. The balance of the City's account in the California Employer's Retiree Benefit Trust (CERBT) totaled nearly $21.7 million at December 31, 2019. Because the City's funding of its retiree medical obligations is now well over 30%, the City will be considering changing the investment strategy from the most progressive strategy provided by the CERBT Fund (Strategy 1) to a strategy with slightly lower risk. Due to a net return of 21.6% over the past calendar year, the cumulative net rate of return since the initial contribution (in October 2013) for the portfolio as of January 31 It was approximately 7.31%. The PARS §115 trust account for funding the City's pension liabilities was established in October 2017, and the December 31, 2019 statement reports a 1-year rate of return of 17.27%, and a balance of over $12.6 million. CONCLUSION All City funds are invested in accordance with the approved Statement of Investment Policy with an emphasis on safety, liquidity, and return (in that order). The City's investment strategy of balancing the investment portfolio between short-term investments (to meet cash flow needs) and longer -term maturities (to realize a higher rate of return) is appropriate, given current market conditions. Due to the ease of access of the City's funds in liquid accounts such as LAIF and CAMP, the City has more than sufficient funds available to meet its liquidity (expenditure) requirements for the next six months. Staff and the City's investment advisor will continue to closely monitor the City's investments to ensure the mitigation of risk and the ability to meet the City's investment goals while being able to respond to changes in market conditions. Investment Report, December 31, 2019 March 2, 2020 FISCAL IMPACT Quarterly reporting of the City's Investment Portfolio will not result in any direct impact on City resources. Exhibits: • Portfolio Holdings as of December 31, 2019 • CERBT Monthly Fact Sheet for December 31, 2019 • PARS Monthly Statement for December 31, 2019 10 0 PfM Managed Account Detail of Securities Held For the Month Ending December 31, 2019 NO Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value U.S. Treasury Bond / Note US TREASURY NOTES 912828D72 875,000.00 AA+ Aaa 12/01/16 12/05/16 877,255.86 1.94 5,913.46 875,819.06 880.776.75 DTD 09/02/2014 2.000% 08/31/2021 US TREASURY NOTES 912828W89 1,000,000.00 AA+ Aaa 12/06/17 12/07/17 991,796.88 2.07 4,764.34 995,644.77 1,006,367.00 DTD 03/31/2017 1.875% 03/31/2022 US TREASURY NOTES 912828W89 1,150,000.00 AA+ Aaa 08/01/18 08/03/18 1,112,265.63 2.82 5,479.00 1,126,397.32 1,157,322.05 DTD 03/31/2017 1.875% 03/31/2022 US TREASURY NOTES 912828W89 2,190,000.00 AA+ Aaa 09/04/18 09/06/18 2,125,412.11 2.75 10,433.91 2,148,612.92 2,203,943.73 DTD 03/31/2017 1.875% 03/31/2022 US TREASURY NOTES 912828W89 2,700,000.00 AA+ Aaa 01/03/18 01/04/18 2,666,988.28 2.18 12,863.73 2,682,145.31 2,717,190.90 DTD 03/31/2017 1.875% 03/31/2022 US TREASURY NOTES 912828X47 1,050,000.00 AA+ Aaa 03/25/19 03/26/19 1,039,828.13 2.20 3,353.37 1,042,292.11 1,056,808.20 DTD 05/01/2017 1.875% 04/30/2022 US TREASURY NOTES 9128282P4 1,225,000.00 AA+ Aaa 11/01/17 11/03/17 1,217,870.12 2.00 9,611.92 1,221,043.38 1,233,660.75 DTD 07/31/2017 1.875% 07/31/2022 US TREASURY NOTES 912828XO8 2,450,000.00 AA+ Aaa 08/31/17 09/01/17 2,481,103.52 1.73 20,505.43 2,466,677.13 2,475,264.40 DTD 07/31/2015 2.000% 07/31/2022 US TREASURY NOTES 912828L57 1,500,000.00 AA+ Aaa 06/04/18 06/06/18 1,438,769.53 2.76 6,670.08 1,460,244.62 1,506,034.50 DTD 09/30/2015 1.750% 09/30/2022 US TREASURY NOTES 912828L57 1,585,000.00 AA+ Aaa 12/04/17 12/05/17 1,555,962.31 2.15 7,048.05 1,568,100.87 1,591,376.46 DTD 09/30/2015 1.750% 09/30/2022 US TREASURY NOTES 912828P38 230,000.00 AA+ Aaa 10/02/18 10/04/18 219,021.09 2.93 1,684.38 222,038.14 230,952.43 DTD 02/01/2016 1.750% 01/31/2023 US TREASURY NOTES 912828P79 1,890,000.00 AA+ Aaa 07/02/18 07/05/18 1,787,895.70 2.74 9,579.81 1,819,270.61 1,883,428.47 DTD 02/29/2016 1.500% 02/28/2023 US TREASURY NOTES 912828P79 2,700,000.00 AA+ Aaa 04/30/18 04/30/18 2,542,113.28 2.80 13,685.44 2,594,386.26 2,690,612.10 DTD 02/29/2016 1.500% 02/28/2023 US TREASURY NOTES 912828029 2,175,000.00 AA+ Aaa 02/08/19 02/12/19 2,094,881.84 2.44 8,289.96 2,111,379.68 2,167,098.23 DTD 03/31/2016 1.500% 03/31/2023 PFM Asset Management LLC Page i 0 PfM Managed Account Detail of Securities Held For the Month Ending December 31, 2019 w Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value U.S. Treasury Bond / Note US TREASURY N/B NOTES 912828R28 1,885,000.00 AA+ Aaa 07/02/18 07/05/18 1,789,792.77 2.75 5,217.41 1,817,943.54 1,884,852.97 DTD 05/02/2016 1.625% 04/30/2023 US TREASURY NOTES 912828S92 1,330,000.00 AA+ Aaa 04/02/19 04/04/19 1,273,682.81 2.28 6,957.20 1,282,998.35 1,312,180.66 DTD 08/01/2016 1.250% 07/31/2023 US TREASURY NOTES 912828S92 2,100,000.00 AA+ Aaa 02/08/19 02/12/19 1,994,917.97 2.44 10,985.05 2,014,864.36 2,071,864.20 DTD 08/01/2016 1.250% 07/31/2023 US TREASURY NOTES 9128282D1 4,195,000.00 AA+ Aaa 07/01/19 07/03/19 4,132,402.73 1.75 19,491.19 4,139,693.79 4,156,326.30 DTD 08/31/2016 1.375% 08/31/2023 US TREASURY NOTES 9128285D8 780,000.00 AA+ Aaa 05/01/19 05/03/19 800,505.47 2.25 5,698.16 797,550.59 814,642.92 DTD 10/01/2018 2.875% 09/30/2023 US TREASURY NOTES 912828WE6 1,375,000.00 AA+ Aaa 03/06/19 03/08/19 1,388,911.13 2.52 4,882.38 1,386,624.20 1,431,127.50 DTD 11/15/2013 2.750% 11/15/2023 US TREASURY NOTES 912828U57 1,515,000.00 AA+ Aaa 01/30/19 01/31/19 1,484,581.64 2.57 2,814.75 1,490,094.70 1,541,985.18 DTD 11/30/2016 2.125% 11/30/2023 US TREASURY N/B NOTES 912828V80 1,050,000.00 AA+ Aaa 03/25/19 03/26/19 1,050,943.36 2.23 9,886.55 1,050,811.99 1,074,322.20 DTD 01/31/2017 2.250% 01/31/2024 US TREASURY N/B NOTES 912828X70 2,300,000.00 AA+ Aaa 06/03/19 06/05/19 2,310,421.88 1.90 7,835.16 2,309,268.15 2,331,535.30 DTD 05/01/2017 2.000% 04/30/2024 US TREASURY N/B 9128282N9 500,000.00 AA+ Aaa 08/01/19 08/02/19 506,992.19 1.83 4,446.33 506,437.56 509,726.50 DTD 07/31/2017 2.125% 07/31/2024 US TREASURY NOTES 912828D56 1,650,000.00 AA+ Aaa 08/30/19 09/03/19 1,723,154.30 1.44 14,801.80 1,718,492.37 1,700,531.25 DTD 08/15/2014 2.375% 08/15/2024 US TREASURY NOTES 9128282Y5 2,110,000.00 AA+ Aaa 10/01/19 10/03/19 2,173,052.73 1.50 11,393.14 2,170,050.79 2,152,200.00 DTD 10/02/2017 2.125% 09/30/2024 US TREASURY N/B 9128283DO 1,500,000.00 AA+ Aaa 11/04/19 11/06/19 1,545,000.00 1.62 5,748.63 1,543,661.34 1,539,258.00 DTD 10/31/2017 2.250% 10/31/2024 US TREASURY N/B 912828337 2,650,000.00 AA+ Aaa 12/02/19 12/04/19 2,707,554.69 1.67 4,923.50 2,706,705.15 2,704,139.50 DTD 11/30/2017 2.125% 11/30/2024 P'FM Asset Management LLC Page 2 Managed Account Detail of Securities Held For the Month Ending December 31, 2019 INTERNATIONAL FINANCE CORPORATION 45950KCMO 795,000.00 AAA Aaa 01/18/18 01/25/18 792,662.70 2.35 7,751.25 794,150.38 799,765.23 NOTE DTD 01/25/2018 2.250% 01/25/2021 INTERNATIONAL FINANCE CORPORATION 45950VLO7 1,550,000.00 AAA Aaa 03/09/18 03/16/18 1,548,837.50 2.66 12,706.56 1,549,523.56 1,562,719.30 NOTE DTD 03/16/2018 2.635% 03/09/2021 INTER-AMERICAN DEVELOPMENT BANK 4581XODB1 895,000.00 AAA Aaa 04/12/18 04/19/18 893,031.00 2.70 4,698.75 894,127.80 905,797.28 NOTE DTD 04/19/2018 2.625% 04/19/2021 INTL BANK OF RECONSTRUCTION AND DEV 459058GHO 1,210,000.00 AAA Aaa 07/18/18 07/25/18 1,207,168.60 2.83 14,604.03 1,208,493.84 1,230,116.25 NOTE DTD 07/25/2018 2.750% 07/23/2021 Security Type Sub -Total 4,450,000.00 4,441,699.80 2.66 39,760.59 4,446,295.58 4,498,398.06 MunicipalBond / Note CA ST TXBL GO BONDS 13063DRJ9 1,170,000.00 AA- Aa2 10/16/19 10/24/19 1,193,411.70 1.87 5,226.00 1,192,337.69 111881427.50 DTD 10/24/2019 2.400% 10/01/2023 Security Type Sub -Total 1,170,000.00 1,193,411.70 1.87 5,226.00 1,192,337.69 1,188,427.50 ObligationFederal Agency Collateralized Mortgage FNA 2018-M5 A2 3136B1XP4 425,603.22 AA+ Aaa 04/11/18 04/30/18 434,068.91 2.27 1,262.62 429,742.86 429,844.82 DTD 04/01/2018 3.560% 09/25/2021 FANNIEMAE-ACES 3136AJB54 845,000.00 AA+ Aaa 12/13/19 12/18/19 886,061.72 1.04 2,356.03 886,061.72 880,905.82 DTD 04/01/2014 3.346% 03/25/2024 Security Type Sub -Total 1,270,603.22 1,320,130.63 1.44 3,618.65 1,315,804.58 1,310,750.64 Federal Agency Bond / Note PFM Asset Management LLC Page 3 0 PfM Managed Account Detail of Securities Held For the Month Ending December 31, 2019 Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Federal Agency Bond / Note FANNIE MAE NOTES 3135GOS38 1,585,000.00 AA+ Aaa 06/27/17 06/29/17 1,595,128.15 1.85 15,497.78 1,589,614.90 1,597,215.60 DTD 01/09/2017 2.000% 01/05/2022 FANNIE MAE NOTES 3135GOS38 2,500,000.00 AA+ Aaa 02/10/17 02/13/17 2,502,650.00 1.98 24,444.44 2,501,126.65 2,519,267.50 DTD 01/09/2017 2.000% 01/05/2022 FANNIE MAE NOTES 3135GOU92 945,000.00 AA+ Aaa 01/09/19 01/11/19 944,319.60 2.65 11,714.06 944,534.29 964,121.13 DTD 01/11/2019 2.625% 01/11/2022 FANNIE MAE NOTES 3135GOT45 1,605,000.00 AA+ Aaa 06/27/17 06/29/17 1,604,759.25 1.88 7,189.06 1,604,890.65 1,615,341.02 DTD 04/10/2017 1.875% 04/05/2022 FANNIE MAE NOTES 3135GOT45 2,500,000.00 AA+ Aaa 05/08/17 05/09/17 2,485,150.00 2.00 11,197.92 2,492,982.53 2,516,107.50 DTD 04/10/2017 1.875% 04/05/2022 FANNIE MAE NOTES 3135GOW33 2,385,000.00 AA+ Aaa 09/05/19 09/06/19 2,373,623.55 1.54 10,475.78 2,374,811.85 2,369,309.09 DTD 09/06/2019 1.375% 09/06/2022 FANNIE MAE AGENCY NOTES 3135GOT78 2,635,000.00 AA+ Aaa 04/30/18 04/30/18 2,542,195.30 2.85 12,589.44 2,575,837.24 2,663,336.79 DTD 10/06/2017 2.000% 10/05/2022 FANNIE MAE NOTES 3135GOT94 675,000.00 AA+ Aaa 03/25/19 03/26/19 678,172.50 2.25 7,214.06 677,566.75 690,241.50 DTD 01/23/2018 2.375% 01/19/2023 FREDDIE MAC NOTES 3137EAEN5 2,085,000.00 AA+ Aaa 01/07/19 01/09/19 2,099,636.70 2.58 1,911.25 2,096,571.92 2,165,476.83 DTD 06/11/2018 2.750% 06/19/2023 FANNIE MAE NOTES 3135GOU43 3,550,000.00 AA+ Aaa 12/03/18 12/06/18 3,542,829.00 2.92 30,902.26 3,544,423.06 3,705,692.35 DTD 09/14/2018 2.875% 09/12/2023 FEDERAL HOME LOAN BANKS NOTES 3130AOF70 1,400,000.00 AA+ Aaa 01/30/19 01/31/19 1,441,263.45 2.72 3,018.75 1,433,902.11 1,487,186.40 DTD 12/09/2013 3.375% 12/08/2023 Security Type Sub -Total 21,865,000.00 21,809,727.50 2.32 136,154.80 21,836,261.95 22,293,295.71 Corporate JOHN DEERE CAPITAL CORP NOTES 24422ETS8 220,000.00 A A2 06/19/17 06/22/17 219,865.80 1.97 107.25 219,978.23 220,041.36 DTD 06/22/2017 1.950% 06/22/2020 WAL-MART STORES INC CORP NOTE 931142EA7 1,850,000.00 AA Aa2 10/11/17 10/20/17 1,847,317.50 1.95 1,562.22 1,849,164.19 1,852,525.25 DTD 10/20/2017 1.900% 12/15/2020 PFM Asset Management LLC Page 4 PFM Asset Management LLC Page 5 0 PfM Managed Account Detail of Securities Held For the Month Ending December 31, 2019 , OF,1RIN�AME Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Corporate AMAZON.COM INC BONDS 023135AW6 1,750,000.00 AA- A3 04/12/19 04/16/19 1,730,067.50 2.71 15,050.00 1,733,609.08 1,781,122.00 DTD 06/06/2018 2.400% 02/22/2023 IPMORGAN CHASE & CO BONDS 46647PBB1 965,000.00 A- A2 04/02/19 04/04/19 970,336.45 3.06 7.736.89 969,393.56 988.012.36 DTD 03/22/2019 3.207% 04/01/2023 HOME DEPOT INC CORP NOTES 437076AZ5 1,075,000.00 A A2 04/03/18 04/05/18 1,054,682.50 3.11 7,256.25 1,061,417.24 1,102,717.80 DTD 04/05/2013 2.700% 04/01/2023 US BANK NA CINCINNATI CORP NOTES 91159HHV5 1,790,000.00 A+ Al 07/22/19 07/24/19 1,875,472.50 2.26 24.500.63 1,867,619.34 1,879,720.17 DTD 02/04/2019 3.375% 02/05/2024 PFIZER INC CORP NOTES 717081ES8 1,500,000.00 AA- Al 03/25/19 03/27/19 1,522,485.00 2.63 13,029.17 1,519,229.73 1,557,894.00 DTD 03/11/2019 2.950% 03/15/2024 Security Type Sub -Total 23,095,000.00 23,184,076.40 2.48 149,728.02 23,151,784.18 23,448,464.73 Certificate of Deposit CANADIAN IMP BK COMM NY FLT CERT 13606BVFO 900,000.00 A-1 P-1 04/06/18 04/10/18 900,000.00 2.78 4,999.71 900,000.00 900,916.20 DEPOS DTD 04/10/2018 2.410% 04/10/2020 BANK OF NOVA SCOTIA HOUSTON CD 06417GU22 1,700,000.00 A-1 P-1 06/05/18 06/07/18 1,699,354.00 3.10 3,781.56 1,699,857.76 1,710,436.30 DTD 06/07/2018 3.080% 06/05/2020 WESTPAC BANKING CORP NY CD 96121T4A3 1,615,000.00 A-1+ P-1 08/03/17 08/07/17 1,615,000.00 2.05 13,243.00 1,615,000.00 1,618,788.79 DTD 08/07/2017 2.050% 08/03/2020 BANK OF MONTREAL CHICAGO CERT DEPOS 06370REU9 1,800,000.00 A-1 P-1 08/01/18 08/03/18 1,800,000.00 3.23 23,765.50 1,800,000.00 1,812,240.00 DTD 08/03/2018 3.190% 08/03/2020 SWEDBANK (NEW YORK) CERT DEPOS 87019U6D6 1,860,000.00 A-1+ P-1 11/16/17 11/17/17 1,860,000.00 2.30 5,160.47 1,860,000.00 1,865,079.66 DTD 11/17/2017 2.270% 11/16/2020 MUFG BANK LTD/NY CERT DEPOS 55379WZT6 930,000.00 A Al 02/27/19 02/28/19 930,000.00 2.99 23,554.58 930,000.00 943,930.47 DTD 02/28/2019 2.970% 02/26/2021 CREDIT AGRICOLE CIB NY CERT DEPOS 22535CDU2 900,000.00 A+ Aa3 04/03/19 04/04/19 900,000.00 2.85 19,244.00 900,000.00 909,198.00 DTD 04/04/2019 2.830% 04/02/2021 PFM Asset Management LLC Page 6 Security Type Sub -Total 12,090,000.00 12,089,354.00 2.58 104,738.29 12,089,857.76 12,147,082.43 Asset -Backed Security NAROT 2017-C A3 65478HADO 289,474.87 NR Aaa 12/06/17 12/13/17 289,425.93 2.13 272.75 289,457.01 289,770.39 DTD 12/13/2017 2.120% 04/15/2022 HART 2018-A A3 44891KAD7 330,000.00 AAA Aaa 04/10/18 04/18/18 329,950.30 2.80 409.20 329,969.62 332,270.24 DTD 04/18/2018 2.790% 07/15/2022 TAOT2018-BA3 89238TAD5 910,000.00 AAA Aaa 05/09/18 05/16/18 909,986.44 2.96 1,197.16 909,991.42 918,933.93 DTD 05/16/2018 2.960% 09/15/2022 MBART 2018-1 A3 58772RAD6 640,000.00 AAA Aaa 07/17/18 07/25/18 639,975.42 3.03 861.87 639,983.25 646,299.65 DTD 07/25/2018 3.030% 01/15/2023 ALLYA 2018-3 A3 020073AC1 1,075,000.00 AAA Aaa 06/19/18 06/27/18 1,074,926.47 3.09 1,433.33 1,074,950.28 1,083,340.39 DTD 06/27/2018 3.000% 01/15/2023 NAROT 2018-B A3 65479GAD1 600,000.00 AAA Aaa 07/17/18 07/25/18 599,980.56 3.06 816.00 599,986.59 608,121.72 DTD 07/25/2018 3.060% 03/15/2023 HYUNDAI AUTO RECEIVABLES TRUST 44932NAD2 525,000.00 AAA NR 04/03/19 04/10/19 524,930.91 2.67 620.67 524,942.80 530,638.92 DTD 04/10/2019 2.660% 06/15/2023 HAROT 2019-2 A3 43815MACO 610,000.00 NR Aaa 05/21/19 05/29/19 609.977.25 2.52 427.00 609,980.56 617,241.74 DTD 05/29/2019 2.520% 06/21/2023 COPAR 2019-1 A3 14042WAC4 330,000.00 AAA Aaa 05/21/19 05/30/19 329,933.14 2.52 368.13 329,941.27 332,952.51 DTD 05/30/2019 2.510% 11/15/2023 NAROT 2019-B A3 65479HAC1 650,000.00 NR Aaa 05/21/19 05/28/19 649,853.04 2.51 722.22 649,871.17 656,545.44 DTD 05/28/2019 2.500% 11/15/2023 CARMX 2019-2 A3 14316LAC7 405.000.00 AAA NR 04/09/19 04/17/19 404,958.61 2.90 482.40 404,964.36 410,084.21 DTD 04/17/2019 2.680% 03/15/2024 PFM Asset Management LLC Page 7 0 PfM Managed Account Detail of Securities Held For the Month Ending December 31, 2019 CITY OF BURLINGAME Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Asset -Backed Security Security Type Sub -Total 6,364,474.87 6,363,898.07 2.81 7,610.73 6,364,038.33 6,426,199.14 Managed Account Sub -Total 117,965,078.09 117,435,376.05 2.35 681,801.21 117,665,629.13 119,338,146.66 Securities Sub -Total $117,965,078.09 $117,435,376.05 2.35% $681,801.21 $117,665,629.13 $119,338,146.66 Accrued Interest $681,801.21 Total Investments $120,019,947.87 PFM Asset Management LLC Page 8 Objective The objective of the CERBT Strategy 1 portfolio is to seek returns that reflect the broad investment performance of the financial markets through capital appreciation and investment income. There is no guarantee that the portfolio will achieve its investment objective. Strategy The CERBT Strategy 1 portfolio is invested in various asset classes in percentages approved by the CalPERS Board. The specific percentages of portfolio assets allocated to each asset class are shown under "Composition". Generally, equities are intended to help build the value of the employer's portfolio over the long term while bonds are intended to help provide income and stability of principal. Also, strategies invested in a higher percentage of equities seek higher investment returns (but assume more risk) compared with strategies invested in a higher percentage of bonds. Compared with CERBT Strategy 2 and Strategy 3, this portfolio consists of a higher percentage of equities than bonds and other assets. Historically, equities have displayed greater price volatility and therefore this portfolio may experience greater fluctuation of value. Employers that seek higher investment returns, and are able to accept greater risk and tolerate more fluctuation in returns, may wish to consider this portfolio. CaIPERS Board may change the list of approved asset classes, in composition as well as targeted allocation percentages and ranges at any time. Assets Under Management As of the specified reporting month -end, the aggregate total of assets under management for all CERBT Strategies was $11,218,781,370. Composition Asset Class Allocations and Benchmarks The CERBT Strategy 1 portfolio consists of the following asset classes and corresoondina benchmarks: Asset Class Allocation' TargetTarget Range Benchmark Global Equity 59% ±5% MSCIAIICountryWorldIndex lMI(net) Bloomberg Barclays Long Liability Fixed Income 25% +5% Index Treasury Inflation- Bloomberg Barclays US TIPS Index, Protected Securities ° 5 /° ° ± 3 /° Series L ('TIPS-) Real Estate Investment 8/0 ° o ± 5 /0 FTSE EPRAINAREIT Developed Trusts ("REITs") Liquid Index (net) Commodities 3% ± 3% S&P GSCI Total Return Index Cash +2% 191 Day Treasury Bill Allocations were approved by the Board at the May 2018 Investment Committee meeting. Portfolio Benchmark The CERBT Strategy 1 benchmark is a composite of underlying asset class market indices, each assigned the target weight for the asset class it represents. Target vs. Actual Asset Class Allocations The following chart shows policy target allocations compared with actual asset allocations as of the specified reporting month -end. CalPERS may overweight or underweight an allocation to a particular asset class based on market, economic, or CaIPERS policy considerations. 80% 60 % 40% 20% 0% ■ Target o Actual Global Equity Fixed Income TIPS REITs Commodities Cash CERBT 1 Month Strategy 3 Months I Performance Fiscal YTD as of 1 Year December 3 Years' 1 5 Years" 10 Years' Since Inception' (June 1, 2007) Gross Returnt•3 2.26% 5.64% 6.98% 21.71% 9.76% 6.84% 8.06% 5.28% Net Return2,3 2.25% 5.62% 6.93% 21.61 % 9.66% 6.75% 7.96% 5.21 % Benchmark returns 2.25% 5.58% 6.85% 21.55% 9.41 % 6.45% 7.80% 4.85% Standard Deviation^ - - - - 7.55% 7.83% 9.42% 12.38% Performance quoted represents past performance, which is no guarantee of future results that may be achievea by the Tuna. " Returns for periods greater than one year are annualized. Gross performance figures are provided net of SSGA operating expenses. 2 Net Performance figures deduct all expenses to the fund, including investment management, administrative and recordkeeping fees. 3 See the Expense section of this document. 4 Standard Deviation is based on gross returns. General Information Information Accessibility The CERBT Strategy 1 portfolio consists of assets managed internally by CalPERS and/or by external advisors. Since it is not a mutual fund, a prospectus is not available nor is information available from a newspaper source. This summary is designed to provide descriptive information. CaIPERS provides a quarterly statement of the employer's account and other information about the CERBT. For total market value, detailed asset allocation, investment policy and current performance information, including performance to the most recent month -end, please visit our website at: www.calpers.ca.gov. Portfolio Manager Information The CalPERS Investment Committee and Board of Administration directs the investment strategy and investments of the CERBT. State Street Global Advisors (SSGA) manages all asset classes for CERBT, which includes: Global Equity, Fixed Income, Real Estate Investment Trusts, Treasury Inflation -Protected Securities, and Commodities.' Custodian and Record Keeper State Street Bank serves as custodian for the CERBT. Northeast Retirement Services serves as record keeper. Expenses CERBT is a self -funded trust in which participating employers pay for all administrative and investment expenses. Expenses reduce the gross investment return by the fee amount. The larger the fee, the greater the reduction of investment return. Currently, CERBT expenses are 0.10% which consist of administrative expenses borne by CalPERS to administer and oversee the Trust assets, investment management and administrative fees paid to SSGA to manage all asset classes, and recordkeeping fees paid to Northeast Retirement Services to administer individual employer accounts. The expenses described herein are reflected in the net asset value per share. CERBT's actual expenses may differ from the amount currently being accrued due to factors such as changes in average fund assets or market conditions. The expense accrual rate may change without notice in order to reflect changes in average portfolio assets or in expense amounts. The CalPERS Board annually reviews the operating expenses and changes may be made as appropriate. Even if the portfolio loses money during a period, the fee is still charged. What Employers Own Each employer choosing CERBT Strategy 1 owns a percentage of this portfolio, which invests in pooled asset classes managed by CalPERS and/or external advisors. Employers do not have direct ownership of the securities in the portfolio. Price The value of the portfolio changes daily based upon the market value of the underlying securities. Just as prices of individual securities fluctuate, the portfolio's value also changes with market conditions. Principal Risks of the Portfolio The CalPERS CERBT Fund provides California government employers with a trust through which they may prefund retiree medical costs and other post - employment benefits. CERBT is not, however, a defined benefit plan. There is no guarantee that the portfolio will achieve its investment objectives nor provide sufficient funding to meet these employer obligations. Further, CalPERS will not make up the difference between the employer's CERBT assets and the actual cost of Other Post Employment Benefits provided to employer's plan members. An investment in the portfolio is not a bank deposit, and it is not insured nor guaranteed by the Federal Deposit Insurance Corporation (FDIC), CalPERS, the State of California or any other government agency. There are risks associated with investing, including possible loss of principal. The portfolio's risk depends in part on the portfolio's asset class allocations and the selection, weighting and risks of the underlying investments. For more information about investment risks, please see the document entitled "CERBT Principal Investment Risks" located at www.calpers.ca.gov. Fund Performance Performance data shown on page 1 represents past performance and is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an employer's units, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than historical performance data shown. For current performance information, please visit www.calpers.ca.gov and follow the links to California Employers' Retiree Benefit Trust. CERBT Strategy Risk Levels CaIPERS offers employers the choice of one of three investment strategies. Risk levels among strategies vary, depending upon the target asset class allocations. Generally, equities carry more risk than fixed income securities. TargetAsset Class Global Equity 59% 40% 22% Fixed Income 25% 43% 49% Treasury Inflation -Protected Securities 5% 5% 16% Real Estate Investment Trusts 8% 8% 8% Commodities 3% 4% 5% .n. shlitegy 1 Less conservative More conservative Less conservative More conservative T strategy i Less conservative More conservative 1 Since June 2018 SSGA has managed passively all CERBT asset classes. Previously Fixed Income, TIPS and Commodity asset classes were internally managed. PUBLIC AGENCY RETIREMENT SERVICES PARS CITY OF BURLINGAME PARS Post -Employment Benefits Trust Carol Augustine Finance Director City of Burlingame 501 Primrose Rd., 1 st Floor Burlingame, CA 94010 Account Report for the Period 12/1/2019 to 12/31/2019 Account Summary Beginning Balance as Ending of Balance as of Source 12/1/2019 Contributions Earnings Expenses Distributions Transfers 12/31/2019 PENSION $12,451,514.11 $0.00 $201,812.27 $9,472.87 $0.00 $0.00 $12,643,853.51 Totals $12,451,514.11 $0.00 $201,812.27 $9,472.87 $0.00 $0.00 $12,6439853.51 Investment Selection Source PENSION City of Burlingame Investment Objective Source PENSION Individual Custom Account Source PENSION 1-Month 3-Months 1.62% 4.14% Investment Return Annualized Return 1-Year 3-Years 5-Years 10-Years 17.27% Plan's Inception Date 10/3/2017 Information as provided by US Bank, Trustee for PARS; Not FDIC Insured; No Bank Guarantee; May Lose Value Past performance does not guarantee future results. Performance returns may not reflect the deduction of applicable fees, which could reduce returns. Information is deemed reliable but maybe subject to change. Investment Return: Annualized rate of return is the return on an investment over a period other than one year multiplied or divided to give a comparable one-year return. Account balances are inclusive of Trust Administration, Trustee and Investment Management fees Headquarters - 4350 Von Karman Ave., Suite 100, Newport Beach, CA 92660 800.540.6369 Fax 949.250.1250 www.pars.org BURLINGAME STAFF REPORT AGENDA NO: 9a ;ffl=JWZ MEETING DATE: March 2, 2020 To: Honorable Mayor and City Council Date: March 2, 2020 From: Kevin Gardiner, Community Development Director — (650) 558-7255 Ruben Hurin, Planning Manager — (650) 558-7256 Kathleen Kane, City Attorney — (650) 558-7263 Subject: Public Hearing to Consider Proposed Amendments to Chapter 25.59 (Accessory Dwelling Units), Chapter 25.60 (Accessory Structures in R-1 and R-2 Districts), Chapter 25.26 (R-1 District Regulations) and Chapter 25.70 (Off -Street Parking) of the Burlingame Municipal Code Related to Accessory Dwelling Units to be Consistent with Recently Adopted Amendments to California Government Code Sections 65852.2 and 65852.22 and Additional Changes to Remove Constraints to Creating Accessory Dwelling Units RECOMMENDATION Staff recommends that the City Council consider proposed amendments to the Burlingame Municipal Code regarding accessory dwelling units. In order to do so, the City Council should: 1. Receive the staff report and ask any questions of staff. 2. Request the City Clerk to read the title of the proposed ordinance. 3. By motion, waive further reading and introduce the proposed ordinance. 4. Conduct a public hearing on the proposed ordinance. 5. Following closure of the public hearing, discuss the proposed ordinance and provide any direction to staff; if no changes are requested, direct staff to bring it back for adoption and ask the City Clerk to publish a summary of the ordinance at least five days before proposed adoption. If Council so directs, the ordinance along with a resolution addressing compliance with the California Environmental Quality Act (CEQA) will be presented for adoption at the March 16, 2020 meeting. BACKGROUND In response to California's statewide and the Bay Area's regional housing shortages, the Governor signed into law a number of bills (AB 881, AB 68, and SB 13) to encourage the construction of accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) by reducing the regulatory barriers commonly found in local zoning ordinances. The recently adopted legislation defines the standards local jurisdictions can apply to ADUs and JADUs. Details of this legislation 1 Title 25 - Zoning Amendments for Accessory Dwelling Units March 2, 2020 are contained in amended Government Code Sections 65852.2 and 65852.22 (see attached for reference). This legislation was signed into law in late 2019 and took effect on January 1, 2020. This State legislation supersedes the City's regulations for ADUs as currently outlined in Municipal Code Chapter 25.59 - Accessory Dwelling Units. The proposed changes are to bring the City of Burlingame's Accessory Dwelling Unit regulations into conformity with State law. At its meeting of February 24, 2020, the Planning Commission reviewed the proposed amendments to the Zoning Regulations and recommended that the City Council adopt the changes as proposed in the attached Draft Ordinance. DISCUSSION The attached draft ordinance makes changes to Chapter 25.59 (Zoning Regulations) of the Municipal Code and other related Municipal Code sections pertaining to Accessory Dwelling Units. Jurisdictions are required to provide a copy of the changes to the Accessory Dwelling Unit regulations to the State Department of Housing and Community Development (HCD) for their review within 60 days of adoption. Changes Mandated by State Law The key areas of change mandated by the State legislation include the following: 1. There is no minimum lot size requirement for construction of an ADU, whether it is a conversion of existing space, an addition, or a new detached structure. 2. In addition to an ADU, a JADU (up to 500 SF in size and located within an existing or proposed single family dwelling) may be created on a single family zoned property. 3. The maximum allowed size for an ADU is 850 SF, or 1,000 SF for two or more bedrooms. 4. ADUs up to 800 SF in size are exempt from lot coverage and floor area regulations. For simplicity and to avoid confusion, staff is proposing that the lot coverage and floor area ratio exemption be applied to 850 SF ADUs to be consistent with the maximum allowed size. 5. Required side and rear setbacks can be no greater than 4'-0". This does not affect detached ADUs since they are exempt from side and rear setbacks if located within the rear 30% of the lot. However, this does reduce the rear setback requirement for an attached ADU from 15-0" to 4'-0". 6. No replacement parking for the primary dwelling can be required if an existing detached or attached garage is converted to an ADU or JADU. 7. No parking is required for a JADU. 8. ADUs are now permitted in all districts zoned to allow multifamily dwelling residential uses (allowed on properties where a multifamily dwelling structure exists). Up to 25 percent of the 2 Title 25 - Zoning Amendments for Accessory Dwelling Units March Z 2020 existing dwelling units within a multifamily dwelling structure, but at least one ADU, may be created within existing non -livable space(s). In addition, up to two new detached ADUs may allowed. 9. Approval for a compliant ADU or JADU must be issued within 60 days of receiving a complete application. Additional Suggested Changes — Not Mandated by State Law In addition to amending Chapter 25.59 (Accessory Dwelling Units), there are several other Municipal Code sections that address accessory dwelling units that require updating for consistency including: • Chapter 25.26 - R-1 District Regulations • Chapter 25.60 - Accessory Structure Regulations • Chapter 25.70 - Off -Street Parking Regulations In order to work toward the spirit of having more ADUs approved to add to Burlingame's housing stock, there are several changes suggested by staff that are not required for compliance with State law. In particular, Sections 25.60.010 (Conditional Use Permit Requirements for Accessory Structures) and 25.26.035 (Uses Allowed with a Special Permit) currently include a number of provisions that may serve to discourage ADUs. Therefore, staff recommends the following changes to these sections: a) Removal of C.S. 25.60.010 (i), which requires a Conditional Use Permit for glazed openings in an accessory structure within 10 feet of the property line or any portion of a glazed opening higher than 10 feet above grade. This section limits the locations of windows and skylights in accessory structures. Discussion: This would apply to ADUs, a detached garage, or any other permitted accessory structure. It has been the experience of staff that most properties contain existing fencing or vegetation that screen the view of and reduce any impacts from windows and skylights in accessory structures. Windows and skylights are standard features typically found in living areas, are required to comply with egress requirements (windows), and provide necessary natural light and ventilation, and therefore should not be restricted in terms of placement. Windows and skylights would still be required to comply with applicable building and fire codes, which means that in most cases, no openings would be allowed within 5'-0" of property line. The Planning and Code Enforcement Divisions have not received any complaints regarding placement of windows and skylights in accessory structures that comply with the otherwise -applicable 5-foot setback. In the past, requests for Conditional Use Permits for windows and skylights have generally been granted. b) Removal of C.S. 25.26.035 (f), which requires a Special Permit for a direct exit from a basement to the exterior of the structure that is anything other than a light or window well. Title 25 - Zoning Amendments for Accessory Dwelling Units March 2, 2020 Discussion: This would apply to ADUs, JADUs, and for all single family dwellings. This change is necessary in order to be consistent with State law, which requires a separate exterior entrance for an ADU or JADU. This would encourage ADUs and JADUs in basements, which would reduce the visible mass and bulk above ground if a detached ADU were to be built as an alternative. This change would also apply to all single family dwellings in the R-1 zoning district, regardless if an ADU was being created. In the case of a single family dwelling, the exit would presumably be used less frequently than if it were for an ADU or JADU, so for consistency, staff recommends that this restriction also be removed altogether. c) Removal of C.S. 25.26.037, which prohibits bedrooms, bathtubs, and shower stalls in basements. This amendment was previously approved by the Planning Commission and City Council with adoption of ADU amendments in 2018 as a way to encourage ADUs in basements. However, due to an oversight, this section was not removed from the Municipal Code. There is no new language or revision being introduced; this is a code cleanup from a previous action. The attached Draft Ordinance sets forth text amendments to the City's existing Accessory Dwelling Unit regulations (Chapter 25.59) to ensure that the Burlingame Municipal Code is consistent with. the new, recently adopted State regulations and to help clarify and improve various provisions of the accessory dwelling unit law to promote the development of accessory dwelling units and junior accessory dwelling units; as reflected in the edits to Title 25, Chapters 25.59, 25.60, 25.26 and 25.70. The Draft Ordinance is provided as an attachment to this report. Regulations to be added are underlined and text to be deleted is indicated in strikeouts. FISCAL IMPACT None. Exhibits: ■ Draft Ordinance ■ Proposed CEQA Resolution ■ Revised Chapters - Clean Version ■ Government Code Sections 65852.2 and 65852.22 4 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BURLINGAME, AMENDING TITLE 25 (ZONING CODE) OF THE BURLINGAME MUNICIPAL CODE, CHAPTERS 25.59, 25.60, 25.26 AND 25.70 TO UPDATE EXISTING ACCESSORY DWELLING UNIT REGULATIONS TO BE CONSISTENT WITH RECENTLY ADOPTED AMENDMENTS TO CALIFORNIA GOVERNMENT CODE SECTIONS 65852.2 AND 65852.22 RELATED TO ACCESSORY DWELLING UNITS The City Council of the City of Burlingame ordains as follows: Division 1. Factual Background WHEREAS, on October 19, 2019, the State of California enacted legislation known as Assembly Bill 881, Assembly Bill 68, and Senate Bill 13, which, among other things, amended Sections 65852.2 and 65852.22 of the Government Code pertaining to accessory dwelling units and junior accessory dwelling units; and WHEREAS, the State of California has enacted legislation to encourage the construction of accessory dwelling units and junior accessory dwelling units in single family and multifamily residential zones, as further defined in this ordinance; and WHEREAS, the revisions to State Law became effective on January 1, 2020. Local jurisdictions are required to comply with the new requirements, which supersede local ordinances. The proposed zoning amendments would ensure that the Burlingame Municipal Code is consistent with the new recently adopted State regulations and help clarify and improve various provisions of the accessory dwelling unit law to promote the development of accessory dwelling units and junior accessory dwelling units; and WHEREAS, Government Codes Sections 65852.2 and 65852.22 require the City of Burlingame to adopt zoning regulations in compliance with State law provisions regarding accessory dwelling units and junior accessory dwelling units; and WHEREAS, the proposed amendments to the zoning code related to accessory dwelling units are Statutorily Exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15282(h) which exempts the adoption of an ordinance regarding second units in a single-family or multifamily residential zone by a city or county to implement the provisions of Sections 65852.2 and 6582.22 of the Government Code as set forth in Section 21080.17 of the Public Resources Code; and WHEREAS, said matters were heard by the Planning Commission of the City of Burlingame on February 24, 2020, at which time it reviewed and considered the staff report and all other written materials and testimony presented and recommended to the City Council that it adopt amendments to Title 25 (Zoning Code) of the Burlingame Municipal Code to amend Chapters 25.59, 25.60, 25.26, and 25.70 to update existing accessory dwelling unit regulations to be consistent with recently adopted amendments to California Government Code Sections 65852.2 and 65852.22 and additional changes to remove constraints to creating accessory dwelling units. ORDINANCE NO. WHEREAS, at its regular meeting of March 2, 2020 the Burlingame City Council introduced an ordinance amending Title 25 — (Zoning Code) of the Burlingame Municipal Code, Chapters 25.59, 25.60, 25.26 and 25.70 to update existing Accessory Dwelling Unit regulations to be consistent with recently adopted amendments to California Government Code Sections 65852.2 and 65852.22 along with additional zoning code changes to the above stated chapters to remove constraints to the creation of accessory dwelling units and junior accessory dwelling units. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BURLINGAME ORDAINS AS FOLLOWS: Division 2. The following code sections are amended, repealed or deleted as follows with underlining indicating new text and strikeouts (s#ikeeai) indicating deleted text. Section 1: Chapter 25.59 Accessory Dwelling Units, Section 25.59.010 Purpose, is amended as follows: Chapter 25.59 ACCESSORY DWELLING UNITS 25.59.010 Purpose. The purpose of this chapter is to regulate both existing and Re accessory dwelling units AS DUs) and junior accessory dwelling units (JADUs) in compliance with California Government Code Sections 65852.2 and 65852.22. . This chapter is intended to implement the Housing Element of the Burlingame General Plan by providing for additional housing opportunities. This will be accomplished by increasing the number of units available within existing neighborhoods while maintaining the primarily single-family and multifamily residential character of the area, and establishing standards for the development and occupancy of accessory dwelling units and junior accessory dwelling units to ensure that they are compatible with neighboring uses and structures, adequately equipped with public utility services, safe for human occupancy, and do not create unreasonable traffic and safety impacts. In cases of conflict between this chapter and any other provision of this title, the provisions of this chapter shall prevail. To the extent that any provision of this chapter is in conflict with State law, the applicable provision of State law shall control, but all other provisions of this chapter shall remain in full force and effect. An accessory residential dwelling unit or junior accessory dwelling unit which conforms to the requirements of this chapter shall not be considered to exceed the allowable density for the lot upon which it is located and shall be deemed to be a residential use which is consistent with the existing General Plan and zoning designations for the lot. ORDINANCE NO. Section 2: Chapter 25.59 Accessory Dwelling Units, Section 25.59.015 Definitions, is added as follows: Chapter 25.59 ACCESSORY DWELLING UNITS 25.59.015 Definitions. The following terms shall have the following meanings for this chapter only and shall supersede the terms defined by Chapter 25.08 (Definitions): (a) "Accessory dwelling unit" or "ADU" means an attached or detached residential dwelling unit ancillary to a primary dwelling unit that provides complete independent living facilities for one (1) or more persons and is located on a lot with a proposed or existing primary residence. It shall include permanent provisions for living sleeping eating cooking and sanitation on the same parcel as the single family or multifamily dwelling is or will be situated. An accessory dwelling unit also includes an efficiency unit as defined in Section 17958.1 of the Health and Safety Code, and a manufactured home, as defined in Section 18007 of the Health and Safety Code. This Chapter recognizes three types of accessory dwelling units as defined below Where a proposed accessory dwelling unit does not clearly fall into one of the defined types the Community Development Director shall make a determination pursuant to Code Section 25.16.150. u "Attached accessory dwelling unit" means an accessory dwelling unit that is constructed as a physical expansion (i.e., addition) of an existing primary dwelling unit including construction of a new basement underneath a primary dwelling unit to accommodate an accessory dwelling unit. (2) "Detached accessory dwelling unit" means an accessory dwelling unit that is constructed as a separate structure from the primary dwelling unit or contained within the existing space of an accessory structure (as defined herein). (3) "Interior accessory dwelling unit" means an accessory dwelling unit that is contained within the existing space of a primary dwelling unit including within its living area basement or attached garage; constructed as part of a proposed primary dwelling unit or created from non -livable space of a multifamily dwelling. "Accessory structure" means a structure that is accessory and incidental to a dwelling located on the same lot. u "Efficiency kitchen" means a kitchen that includes each of the following: (1) A sink and cooking facility with appliances (e.g., microwave toaster oven or hot plate). u A food preparation counter and storage cabinets that are of reasonable size in relation to the size of the junior accessory dwelling unit. (d) "Junior accessory dwelling unit" or "JADU" means a residential dwelling unit that: M is no more than 500 square feet in size. ORDINANCE NO. (2) is contained entirely within an existing or proposed single family dwelling, (3) includes its own separate sanitation facilities (bathroom containing a sink, toilet, and shower or tub) or may share sanitation facilities with the existing or proposed single family structure, and (4) includes an efficiency kitchen, as defined in subsection (c) above. (a) "Living area" means the interior habitable floor area of a dwelling unit including basements and attics but does not include a garage or any accessory structure. (f) "Nonconforming zoning conditions" means a physical improvement on a property that does not conform with current zoning standards. (g) "Passageway" means a pathway that is unobstructed clear to the sky and extends from a street to the entrance of an accessory dwelling unit or junior accessory dwelling unit. (h) "Public transit" means a location including but not limited to a bus stop or train station, where the public may access buses trains subways and other forms of transportation that charge set fares, run on fixed routes and are available to the public. (i) "Tandem parking' means a parking configuration where two (2) or more automobiles are parked on a driveway or in any other location on a lot lined up behind one another. Section 3: Chapter 25.59 Accessory Dwelling Units, Section 25.59.020 Accessory dwelling unit permit procedure, is amended as follows: Chapter 25.59 ACCESSORY DWELLING UNITS 25.59.020 Applications and processing Asses (a) Applications for ADU and JADU permits GuGh an aGGesseFy dwelling Mit P9FFAkshall be in writing and filed with the Community Development Department GOMmunity develepment diFeGte on a form approved by the sCommunity dDevelopment dDirector. (b) As established by council resolution, a fee will be charged for an application for an ADU or JADU aGG966OFy dwelling-wift permit under this chapter. All ADUs and JADUs are also subject to building permit fees. (c) Within sixty ene huRdred tweRty @0 4-2-9) days of receipt of a complete application, the Community Development Department staff shall ministerially process for approval any application for an aGG966eFy dwelling ADU or JADU permit pursuant to this chapter. Incomplete applications will be returned with an explanation of what additional information is required. Upon finding that the ADU or JADU meets the requirements of this chapter, the application prepesat shall be approved ministerially without discretionary review or public hearing and the applicant may proceed to acquire a building permit. All ORDINANCE NO. ADUs and JADUs aGGeSSOry units are categorically exempt from CEQA pursuant to Sections 15301 and 15303 of the CEQA guidelines. if the appliGation does ^et .meet all of thereq&8MeRtS of this Ghapt@F the GOMMYRity developmeRt diF8GtGF shall deny the appliGatiOR. (d) If an application for an attached ADU or JADU is submitted with an application for an addition to an existing single family dwelling or construction of a new single family dwelling that is subject to design review or other discretionary permit for the same parcel the application for the ADU or JADU permit shall not be acted upon until the application for design review or other discretionary permit is approved Following the approval for design review or other discretionary permit for the primary dwelling unit the ADU or JADU application will be ministerially processed within 60 days of receipt of a complete application and approved if it meets the requirements of this chapter. (e) If the applicant requests a delay, the 60-day time period for approval shall be tolled for the period of the delay. Section 4: Chapter 25.59 Accessory Dwelling Units, Section 25.59.040 Revocation of accessory dwelling unit permit, is amended as follows: Chapter 25.59 ACCESSORY DWELLING UNITS 25.59.040 Revocation of permit aGGessory dwelling uni permit. (a) Grounds. An ADU or JADU permit granted pursuant to this chapter may be revoked on any one or more of the following grounds: (1) Failure to comply with the requirements of this chapter The peFfaffnaRG8 standards A, -tliRpa this ha tee are not being mote or (2) The ADU or JADU aGGGS69FY dwelliRg-4RA is no longer used for residential purposes; or (3) The parking required by this chapter is no longer provided; or ----MMMM (b) Notice. Written notice to revoke an ADU or JADU aGressary dwell Rg permit shall be served on the property owner, as shown on the last equalized assessment roll, either personally or by certified mail, and shall state: (1) The reasons for the proposed revocation. (2) That the proposed action will be taken by the Community Development Director difester-ef GOmmunity development unless a written request for a hearing before the Pplanning Ceommission is requested within fifteen (15) days after the date of said notice. If no response is received, the Community Development Director dirpntnF Af AOMMURity developmeRt shall forthwith will revoke the ADU or JADU permit as set forth in the said notice. ORDINANCE NO. (c) Hearing. If a hearing is requested, at least ten (10) days' notice thereof shall be given to the requested party. At the any-sush hearing, the property owner may shaa call witnesses and present evidence in his or her behalf. Upon conclusion of the such hearing, the Pplanning Csommission will determine whether or not the permit will shaa be revoked. Such determination may be appealed to the city council in the same manner as for appeals taken on applications for the granting of conditional use permits or variances. Section 5: Chapter 25.59 Accessory Dwelling Units, Section 25.59.050 Variances prohibited, is repealed and deleted in its entirety. Section 6: Chapter 25.59 Accessory Dwelling Units, Section 25.59.055 Minimum standards for eligibility, is added as follows: Chapter 25.59 ACCESSORY DWELLING UNITS 25.59.055 Minimum standards for eliaibility. (a) No minimum lot area is required for creation of an ADU or JADU. (b) An ADU or JADU shall only be allowed on a parcel which has been legally created in compliance with the Subdivision Map Act and Title 26 (Subdivisions) and where the ADU or JADU is developed with an existing or proposed single family dwelling except for ADUs constructed on multifamily residential properties pursuant to Section 25.59.090. (c) ADUs may only be permitted in districts zoned to allow single family dwelling or multifamily dwelling residential uses as a permitted use ADUs are also permitted on any parcel that has a current and valid nonconforming single family or multifamily residential use so long as the ADU complies with all other portions of this chapter. (d) JADUs may only be permitted in districts zoned to allow a single family dwelling residential use as a permitted use JADUs are also permitted on any parcel that has a current and valid nonconforming single family residential use so long as the JADU complies with all other portions of this chapter. Section 7: Chapter 25.59 Accessory Dwelling Units, Section 25.59.060 Performance standards for accessory dwelling units, is repealed and replaced in its entirety with the following text: Chapter 25.59 ACCESSORY DWELLING UNITS 25 59 060 General requirements and restrictions. The following requirements and restrictions apply to all existing and new ADUs and JADUs, as applicable: ORDINANCE NO. (a) ADUs and JADUs shall comply with all applicable provisions of this title and all applicable building health and fire codes. However. ADUs and JADUs shall not be required to provide fire sprinklers unless required for the primary single family dwelling or multifamily dwelling structure (b) All development standards contained in the underlying zoning district including Chapter 25.60, shall apply to ADUs and JADUs unless they are inconsistent with the provisions of this chapter, in which case the development standards of this chapter shall apply. (c) Accessory dwelling units. (1) ADUs maybe rented separately from the single family dwelling or multifamily dwelling structure but may not be sold or otherwise conveyed separately from the other dwellings on the lot. (2) ADUs may not be rented for fewer than 30 consecutive calendar days. (3 ADUs are not subject to any owner -occupancy requirement. (d) Junior accessory dwelling units. (1) JADUs maybe rented separately from the single family dwelling, but may not be sold or otherwise conveyed separately from the single family dwelling on the lot. (2) JADUs may not be rented for fewer than 30 consecutive calendar days. 3) JADUs are subject to an owner -occupancy requirement A person with legal or equitable title to the property shall reside on the property in either the primary dwelling or JADU as that person's legal domicile and permanent residence However the owner -occupancy requirement of this paragraph does not apply if the property is entirely owned by another governmental agency, land trust, or housing organization Prior to issuance of a building permit for a JADU the owner shall record a covenant in a form prescribed by the city attorney which shall run with the land and provide for the following: (i) A prohibition on the sale of the JADU separate from the sale of the single family dwelling• (ii) A restriction on the size and attributes of the JADU consistent with this section; (iii) A prohibition against renting the property for fewer than 30 consecutive calendar days: and (iv) A requirement that either the primary residence or the JADU unit be the owner's bona fide principal residence unless the owner is a governmental agency, land trust or housing organization. (e) If an ADU or JADU which was created within a single family dwelling accessory structure or multifamily dwelling structure is required to be removed or is voluntarily removed, the kitchen facility shall be removed and the space shall be converted back to its original use. If an ADU was newly constructed (1) the space or structure shall be entirely removed or (2) the kitchen facility shall be removed and the space shall be converted to a permitted use allowed within the underlying zoning ORDINANCE NO. district or (3) the kitchen facility shall be removed and the applicant shall obtain the appropriate land use permit for the proposed use within the space. (f) Certificates of occupancy. A certificate of occupancy for an ADU shall not be issued before a certificate of occupancy is issued for the primary dwelling unit. (q) Deed restriction Prior to issuance of a building permit for an ADU or JADU, a deed restriction must be recorded against the title of the property in the County Recorder's office and a copy filed with the Community Development Department. The deed restriction must run with the land and bind all future owners The form of the deed restriction will be provided by the City and must provide that: (1) The ADU or JADU shall not be sold separately from the primary dwelling. (2) The ADU or JADU is restricted to the approved size and to other attributes allowed by this Section. (3) The deed restriction runs with the land and maybe enforced against future property owners. (4) The deed restriction may be removed if the owner eliminates the ADU or JADU, as evidenced by for example removal of the kitchen facilities. To remove the deed restriction, an owner may make a written request of the Citv providing evidence that the ADU or JADU has in fact been eliminated The City may then determine whether the evidence supports the claim that the ADU or JADU has been eliminated Appeal may be taken from the City's determination consistent with other provisions of this Code. If the ADU or JADU is not entirely physically removed but is only eliminated by virtue of havina a necessary component of an ADU or JADU removed the remaining structure and improvements must otherwise comply with applicable provisions of this Code. (5) The deed restriction is enforceable by the Community Development Director or his or her designee for the benefit of the City. Failure of this property owner to comply with the deed restriction may result in legal action against the property owner and the City is authorized to obtain any remedy available to it at law or equity, including but not limited to obtaining an iniunction enioinina the use of the ADU or JADU in violation of the recorded restrictions or abatement of the illegal unit. Section 8: Chapter 25.59 Accessory Dwelling Units, Section 25.59.070 Development standards for accessory dwelling units, is added as follows: Chapter 25.59 ACCESSORY DWELLING UNITS 25 59 070 Development standards for accessory dwelling units. An ADU shall be constructed only in accordance with the following development standards. (7 ORDINANCE NO. (a) Location and number. Only one (1) ADU shall be permitted per lot which contains an existing or proposed single family dwelling ADUs may be located in any of the following: (1) Within the walls of an existing or proposed single family dweliina: (2) Attached to an existing or proposed single family dwelling: (3) Within an existing accessory structure: or (4) Detached from the single family dwelling but located on the same lot as the existing or proposed single family dwelling. (b) Minimum size No ADU shall be smaller than the size required to allow an efficiency unit pursuant to Health and Safety Code Section 17958.1. (c) Maximum size The maximum floor area for an ADU shall be 850 sauare feet or 1,000 square for two (2) or more bedrooms. (1) If the ADU is created by converting space within an existing single family dwelling or accessory structure: (i) an expansion limited to 150 square foot beyond the physical dimensions of the existing single family dwelling or accessory structure is permitted strictly to accommodate ingress and egress to the ADU: this additional square footage shall be exempt from lot coverage and floor area ratio requirements The side and rear setback requirements for the single family dwelling may be reduced to no less than four (4) feet to accommodate an exterior stair and landing that provide required access to the ADU if it is located on the second story: and (ii) the ADU must have side and rear setbacks sufficient for fire and safety, as dictated by applicable building and fire codes. (d) Floor area ratio and lot coverage An ADU measuring no more than 850 square feet in size shall be exempt from floor area ratio and lot coverage requirements An ADU greater than 850 square feet shall comply with the floor area ratio and lot coverage regulations as specified by the applicable zoning district. (e) Maximum living area within a single family dwelling An attached or interior ADU shall not exceed fifty percent (50%) of the living area of the single family dwelling except to the extent necessary to allow an ADU of up to 850 square feet. (f) Allowable rooms An ADU shall be limited to a maximum of two (2) bathrooms and two (2) bedrooms (defined as a habitable room with an area not less than 70 square feet as described by California Building Code). An ADU shall also contain no more than one (1) kitchen facility. (q) Setbacks An ADU (attached or detached) shall conform to the following setback standards: ORDINANCE NO. (1) A setback of four (4) feet is required from the side and rear property lines: however, no setbacks shall be required under the following circumstances: M Existing livable space or an existing accessory structure that is converted in whole or in part, to an ADU: (ii) The ADU is constructed in the same location and to the same dimensions as an existing structure that is demolished solely for the purpose of constructing the ADU: or (iii) Construction of anew detached ADU entirely located within the rear 30% of the lot. If any portion of the detached ADU is located forward of the rear 30% of the lot, it shall comply with the setback requirements of the applicable zoning district in which it is located, but no more than four (4) foot side or rear setbacks shall be required. (2) There shall be a minimum four (4) foot separation between a detached ADU and any other structure on the lot. (3) Where an existing single family dwelling is located within the rear 60% of the lot, a detached ADU may be located in front of the single family dwelling but not in any portion of the required front setback. (h) Maximum height and stories. (1) Detached ADUs. (i) All detached ADUs shall be limited to one (1) story in height and shall not be constructed above detached garages or detached accessory structures except for accessory dwelling units created entirely within an existing legal two-story detached accessory structure. (ii) The maximum allowed building height for a detached ADU is 16 feet, as measured from average adjacent grade to the top of the highest roof ridge; the roof shall be pitched from ridge to plate on at least two (2) sides and the ridge shall be no closer than five (5) feet to a side property line. NO The maximum allowed plate height is 9 feet as measured from average adjacent grade to the top of plate. (2) Attached ADUs Attached ADUs maybe constructed on the first or second floor of an existing or proposed single family dwelling and shall be subject to the height requirements of the applicable zoning district in which it is located. (i) Entrance An ADU shall have a separate exterior entrance from themain entrancetothe existing or proposed single family dwelling. For an ADU located entirely on a second story, this shall require a separate interior or exterior stairway. The entrance to the ADU shall not face the same public street as the entrance to the single family dwelling unless it is the only location determined to comply 10 ORDINANCE NO. with applicable building and fire codes A passageway from the ADU to a public street may be created but is not required. (i) Windows and skylights The placement of windows and skylights in ADUs shall comply with all applicable building and fire codes. (k) Balconies/Decks Balconies second story decks and rooftop terraces are prohibited for all ADUs. (I) Interior Connection Attached and interior ADUs may, but are not be required, to contain an interior doorway connection between the single family dwelling and ADU. (m) Permanent Foundations. (1) All ADUs shall be permanently attached to a permanent foundation. (2) A recreational vehicle commercial coach trailer, motor home, camper, camping trailer, boat or similar vehicle shall not be used as an ADU. (n) Existing ADUs built before January 1 1954. For existing ADUs built before January 1. 1954 the following additional criteria shall be met: (1) The ADU shall conform to the requirements of the California Health and Safety Code Section 17920.3. and the Uniform Housing Code as adopted by Section 17922; (2) Improvements may be made to the ADU so long as it conforms to the requirements of this chapter and corrects any violation of Health and Safety Code Section 17920.3 and the Uniform Housing Code. Section 9: Chapter 25.59 Accessory Dwelling Units, Section 25.59.080 Development standards for junior accessory dwelling units, is added as follows: Chapter 25.59 ACCESSORY DWELLING UNITS 25 59 080 Development standards for junior accessory dwelling units. A junior accessory dwelling unit shall be constructed only in accordance with the following development standards: (a) Location The JADU may only be located within the walls of an existing or proposed single family dwelling The JADU must have side and rear setbacks sufficient for fire and safety, as dictated by applicable building and fire codes. (b) Number. Only one (1) JADU shall be permitted per lot which contains an existing or proposed single family dwelling A JADU may be allowed in conjunction with one (1) detached ADU on the same lot as long as the ADU does not exceed 850 square feet. 11 ORDINANCE NO. (c) Minimum size No JADU shall be smaller than the size required to allow an efficiency unit pursuant to Health and Safety Code Section 17958.1. (d) Maximum size. The JADU shall not exceed 500 square feet in area. An expansion limited to 150 square foot beyond the physical dimensions of the existing single family dwelling is permitted strictly to accommodate ingress and egress to the JADU• this additional square footage shall be exempt from lot coverage and floor area ratio requirements The side and rear setback requirements for the single family dwelling may be reduced to no less than four (4) feet to accommodate an exterior stair and landing that provide required access to the JADU if it is located on the second story. (e) Kitchen The JADU shall contain an efficiency kitchen satisfying the following the criteria: (1) Contains a sink and cooking facility with appliances (e g., microwave, toaster oven or hot late . (2) Contains afood preparation counter and storage cabinets that are of reasonable size in relation to the size of the JADU. (f) Bathroom The JADU may have a separate bathroom or may share a bathroom with the single family dwelling The bathroom shall contain a sink toilet, and shower or tub. If the bathroom is shared there must be a connecting door between the JADU and the single family dwelling. (q) Entrance The JADU shall have a separate exterior entrance from themain entrancetothe existing or proposed single family dwelling The entrance to the JADU shall not face the same public street as the entrance to the primary dwelling unless it is the only location determined to comply with applicable building and fire codes A passageway from the ADU to a public street may be created but shall not be required. (h) A JADU is not considered a separate or new dwelling for purposes of fire safety or life safety. Section 10: Chapter 25.59 Accessory Dwelling Units, Section 25.59.090 Accessory dwelling units on multifamily residential properties, is added as follows: Chapter 25.59 ACCESSORY DWELLING UNITS 25 59 090 Accessory dwelling units on multifamily residential properties. The following requirements and restrictions apply to creation of ADUs on multifamily residential properties. (a) For the purposes of this section the term "multifamily dwelling structure" means two (2) or more residential units contained within one (1) or more buildings on the same lot. 12 ORDINANCE NO. (b) Conversion. A minimum of one (1) and up to 25 percent of the existing dwelling units within a multifamily dwelling structure maybe created within existing non -livable space(s), including, but not limited to storage rooms, boiler rooms, passageways, attics, basements, or garages, provided that the dwellings comply with building and fire codes An ADU shall not be created within any portion of the habitable area of an existing dwelling unit in a multifamily structure. When calculating the number of allowed ADUs based on the percentage of existing multifamily units round down to the nearest inteqer. (1) Spaces required as part of a condition of approval or zoning requirement (e.g. bike storage room) cannot be converted to ADUs. (c) New detached ADUs In addition to ADUs allowed by subsection (b), up to two (2) new detached accessory dwelling units may be allowed provided that the height does not exceed 16 feet and that four (4) foot side and rear yard setbacks are maintained. These ADUs shall be subject to the standards requirements and restrictions of this Chapter. (1) New detached ADUs shall not be located between a multifamily dwelling structure and property line abutting a public street: provided where an existing multifamily dwelling structure is located within the rear 60% of the lot a detached ADU may be located in front of the multifamily dwelling structure but not in any portion of the required front setback. (2) There shall be a minimum four (4) foot separation between a detached ADU and any other structure on the lot. Section 11: Chapter 25.59 Accessory Dwelling Units, Section 25.59.100 Design, is added as follows: Chapter 25.59 ACCESSORY DWELLING UNITS 25.59.100 Design. The design of accessory dwelling units shall conform with the following standards: (a) Attached and detached accessory dwelling units Attached and detached ADUs shall incorporate the same or similar architectural features and building materials as the primary structure located on the property. Compatibility with the primary structure includes coordination of exterior building and roofing materials roof slope and other architectural features. (b) Interior accessory dwelling units Interior accessory dwelling units contained within the existing space of an attached garage shall include removal of garage doors which shall be replaced with architectural features the same as those of the primary dwelling unit including the same wall cladding window type and trim that remove any appearance that the structure was originally a garage. This wall shall contain at least one (1) window that is consistent in size and type with other existing windows on the same building facade. 13 ORDINANCE NO. Section 12: Chapter 25.59 Accessory Dwelling Units, Section 25.59.110 Parking, is added as follows: Chapter 25.59 ACCESSORY DWELLING UNITS 25.59.110 Parking. (a) Unless otherwise provided in this section one (1) off-street parking space shall be provided for the ADU in addition to the off-street parking spaces required for the single family dwelling or multifamily residential structure All parking shall be provided on a hard all-weather surface. (b) The parking space may be provided in setback areas or as tandem parking, unless specific findings are made that parking in setback areas or tandem parking is not feasible based upon specific site or regional topographical or fire and life safety conditions. (c) No parking shall be required for an ADU in any of the following instances: (1) The ADU is located within one-half mile walking distance of public transit. For the purposes of this section only, public transit is defined as a location including, but not limited to, a bus stop or train station where the public may access buses trains subways, and other forms of transportation that charge set fares run on fixed routes and are available to the public. (2) The ADU is located within an architecturally and historically significant historicdistrict. (3) The ADU is part of the proposed or existing primary residence or an existing accessory structure. (4) When on -street parking permits are required but not offered to the occupant of the ADU. (5) When there is an established car share vehicle stop located within one block of the ADU. (d) No parking shall be required for a JADU and any parking displaced by its construction, including conversion of all or part of an existing attached garage are not required to be replaced. (e) When a garage carport or covered parking structure is demolished in conjunction with the construction of an ADU or converted to an ADU those off-street parking spaces are not required to be replaced. Section 13: Chapter 25.59 Accessory Dwelling Units, Section 25.59.120 Utilities, is added as follows: Chapter 25.59 ACCESSORY DWELLING UNITS 25.59.120 — Utilities. (a) No ADU or JADU shall be permitted if it is determined that there is not adequate water or sewer service to the property. 14 ORDINANCE NO. (b) Except as provided in subsection (c)an ADU maybe required to have anew or separate utility connection, including a separate sewer lateral, between the ADU and the utility. A connection fee or capacity charge may be charged that is proportionate to the size in square feet of the ADU or its drainage fixture unit (DFU) values Separate electric and water meters shall be required for the ADU (c) The following ADUs shall be exempt from any requirement to install anew or separate utility connection and to pay any associated connection or capacity fees or charges: (1) Junior accessory dwelling units. (2) Standard ADUs converted from interior space unless the unit is constructed within a new single-family home. Section 14: Chapter 25.59 Accessory Dwelling Units, Section 25.59.130 Delay of enforcement of building standards, is added as follows: Chapter 25.59 ACCESSORY DWELLING UNITS 25 59130 — Delay of enforcement of building standards. (a) Prior to January 1 2030 the owner of an ADU that was built before January 1. 2020, may submit a written request to the Chief Building Official requesting that correction of any violation of building standards be delayed for five (5) years For purposes of this section "building standards" refers to those standards enforced by local agencies under the authority of Section 17960 of the California Health and Safety Code. (b) The Chief Building Official will grant the application if the Chief Building Official determines that enforcement of the building standard is not necessary to protect health and safety. In making this determination the Chief Building Official will consult with the Fire Marshal. (c) No applications pursuant to this section shall be approved on or after January 1. 2030. However, any delay that was approved by the city before January 1. 2030 shall be valid for the full term of the delay that was approved at the time of the approval of the application. (d) Until January 1 2030 any notice to correct a violation of building standard that is issued to the owner of an ADU built before January 1 2020 shall include a statement that the owner has a right to request a delay in enforcement of the building standard for an ADU pursuant to this section. Section 15: Chapter 25.60 Accessory Structures in R-1 and R-2 Districts, Section 25.60.010 Conditional use permit requirements, is amended as follows: Chapter 25.60 ACCESSORY STRUCTURES IN R-1 AND R-2 DISTRICTS 25.60.010 Conditional use permit requirements. Accessory structures in the R-1 or R-2 Districts shall be a conditional use requiring a conditional use permit if any of the following will exist: 15 ORDINANCE NO. (a) Two (2) or more accessory structures, each having over one hundred twenty (120) square feet gross floor area, will exist on a single lot, except that there may be two (2) accessory structures if one is an accessory dwelling unit which complies with the provisions of Chapter 25.59 and obtains an accessory dwelling unit permit; (b) Any single accessory structure will exceed six hundred (600) square feet of gross floor area; except that an accessory structure containing an accessory dwelling unit which complies with the provisions of Chapter 25.59 and obtains an accessory dwelling unit permit may be up to six handfed " (649) 850 square feet or 1,000 square feet for two (2) or more bedrooms; (c) All accessory structures on a single lot will exceed a total of eight hundred (800) square feet gross floor area; except that an accessory structure containing an accessory dwelling unit which complies with the provisions of Chapter 25.59 and obtains an accessory dwelling unit permit may be up to 850 square feet or 1,000 square feet for two (2) or more bedrooms; (d) An accessory structure will occupy any portion of the lot in front of the main building; provided, where a dwelling has been erected on the rear sixty (60) percent of the lot prior to January 15, 1954, a garage may be erected in front of the main building, but not in any portion of the front setback; (e) An accessory structure will be erected closer than four (4) feet to any other structure on the same lot; (f) Accessory structures will cover more than fifty (50) percent of the rear thirty (30) percent of a lot; an accessory structure containing an accessory dwelling unit which complies with the provisions of Chapter 25.59 and obtains an accessory dwelling unit permit shall not be included in this calculation; (g) The plate line of the accessory structure will be more than nine (9) feet above grade at the closest point between the plate line and adjacent grade; (h) he roof height of the accessory structure will exceed ten (10) feet above grade, except the height may be increased one foot for each foot of separation from an adjacent property line, up to a maximum height of fourteen (14) feet, provided: (1) Where the lot slopes more than ten (10) percent at the location of the accessory structure, the maximum height shall be four (4) feet above the plate line, (2) The portion of the structure at the rear property line may have a maximum height of fourteen (14) feet if the structure has a pitched roof on both sides and the rear plate line does not exceed nine (9) feet above the natural grade, (3) The roof height of an accessory structure may have a maximum height of fifteen (15) feet above grade when the roof is pitched from ridge to plate on at least two (2) sides, and the ridge is no closer than five (5) feet to a side property line, and the rear plate line does not exceed nine (9) feet above the natural grade;• except that an accessory structure containing an accessory dwelling unit 16 ORDINANCE NO. which complies with the provisions of Chapter 25.59 and obtains an accessory dwelling unit permit may be up to sixteen (16) feet above grade: and (4) No portion of the space within any accessory structure between the top of plate and the lowest portion of the roof structure including any dormer shall exceed seven (7) feet in height; (jJ Water or sewer connections to the accessory structure will exceed building code minimums or the -accessory structure will contain any shower, bath or toilet, except thatfor an accessory structure containing an accessory dwelling unit which complies with the provisions of Chapter 25.59 and obtains an accessory dwelling unit permit; (kj) The accessory structure will enclose mechanical equipment, excluding air conditioning equipment, which is designed to operate on a regular or continuous basis, which may be objectionable because of loudness, hours of operation, odor or other reason, and which is to be located less than twenty (20) feet from any structure for habitation, or less than ten (10) feet from any property line; provided such shall be allowed without a special permit if the building official approves the structureas adequately sound insulated; (kl) Storage of household goods, tools or equipment in the accessory structure will exceed ten (10) percent of the gross floor area of the main dwelling structure; (ral) Any portion of the accessory structure will be used for accessory living quarters, recreation purposes or for use in a home occupation; except for an accessory structure containing an accessory dwelling unit which complies with the provisions of Chapter 25.59 and obtains an accessory dwelling unit permit does not require a conditional use permit; (am) The accessory structure will be a greenhouse, trellis, lanai, patio shelter or similar structure exceeding one hundred twenty (120) square feet of gross floor area. Section 16: Chapter 25.26 R-1 District Regulations, Section 25.26.035 Uses allowed with a special permit, is amended as follows: Chapter 25.26 R-1 DISTRICT REGULATIONS 25.26.035 Uses allowed with a special permit. The following are uses allowed in the district with a special permit: (a) Attached garages for single-family dwelling units; (b) Reduction in the number of parking spaces existing on site; except where the on -site parking requirement is met per Chapter 25.70 for the existing units on -site and the reduction in the number of 17 ORDINANCE NO. parking spaces is for the purpose of creating an accessory dwelling unit which complies with the provisions of Chapter 25.59; (c) Construction exceeding the limits of the declining height envelope; (d) An accessory structure damage exempt from setback restrictions located within the rear forty (40) percent of the lot; (e) An accessory structure that is in the rear of the lot and that is more than twenty-eight (28) feet in width or depth, except that for an accessory structure containing an accessory dwelling unit which complies with the provisions of Chapter 25.59 and obtains an accessory dwelling unit permit. erw+adew-wel6 Section 17: Chapter 25.26 R-1 District Regulations, Section 25.26.037 Prohibited uses, is repealed and deleted in its entirety. 75.2 027 D hubmtedl Uses. (b) Q . mernc OR basements. Section 18: Chapter 25.70 Off -Street Parking, Section 25.70.010 Vehicle parking spaces to be provided, is amended as follows: Chapter 25.70 OFF-STREET PARKING 25.70.010 Vehicle parking spaces to be provided. (a) Parking Required. At the time of erection of any building or structure, or at the time any building or structure is enlarged or increased in capacity, there shall be provided off-street parking spaces with adequate and proper provision for ingress and egress by standard size automobiles. (b) Parking with Remodel or Reconstruction. When any building is remodeled, reconstructed or changed in use by the addition of dwelling units, gross floor area, seating capacity, change in type of use or intensified use, such additional garage or parking facilities as may be required must be provided, except for accessory dwelling units and junior accessory dwelling units approved per Chapter 25.59. (c) Minimum Requirements. The regulations which follow are the minimum requirements unless specific requirements are made for a particular use in a district. Additional spaces may be provided. Unless otherwise expressly permitted by a section of this chapter, parking required by this chapter is to be provided on the same lot as the use for which the parking is required. iu ORDINANCE NO. Section 19: Chapter 25.70 Off -Street Parking, Section 25.70.030 Requirements for single-family dwellings, is amended as follows: Chapter 25.70 OFF-STREET PARKING 25.70.030 Requirements for single-family dwellings. The following are parking requirements for single-family dwellings. (a) Parking Space Requirements. Each single-family dwelling shall provide off-street parking spaces for at least two (2) vehicles, one of which must be covered by a garage or carport. The following further requirements apply to certain additions and to new single-family dwellings: (1) An existing single-family dwelling increased in size to three (3) or four (4) bedrooms and a new single-family dwelling with up to four (4) bedrooms shall provide off-street parking spaces to current code dimensions for at least two (2) vehicles, one of which must be covered by a garage or carport; (2) A single-family dwelling hereafter increased in size to five (5) or more bedrooms and a new single-family dwelling with five (5) or more bedrooms shall provide off-street parking to current code dimensions for at least three (3) vehicles, two (2) of which must be covered by a garage or carport; (3) For the purposes of subsections (a)(1) and (2) of this section, an existing garage not less than eighteen (18) feet wide and twenty (20) feet deep interior dimension shall be considered to provide two (2) covered off-street parking places; (4) For additions to existing single-family dwellings, an existing garage with an eighteen (18) foot depth interior dimension shall be considered to meet the dimensional requirements for a parking space; (5) Bedrooms that are within accessory dwelling units or junior accessory dwelling units shall not be counted toward the overall number of bedrooms for the primary single-family dwelling on the lot on which it is located; parking for accessory dwelling units shall comply with Sestiea the provisions of Chapter 25.59.060(9 . (b) Parking Aisles and Driveways. Covered parking spaces shall have a twenty-four (24) foot back-up area or be designed to be entered or exited in no more than three (3) maneuvers. All spaces must allow entry in three (3) maneuvers in the forward direction. (c) Parking Limitations. (1) A vehicle shall not be parked between a structure and the front or side property line except in a garage, driveway or other approved parking; except for parking for an accessory dwelling unit which complies with the provisions of Chapter 25.59; 19 ORDINANCE NO. (2) Inoperative vehicles, vehicle parts, boats and campers (as defined by Section 243 of the Vehicle Code) shall not be stored or parked in driveways or between a structure and front or side property line; (3) Required covered parking shall not be provided in tandem configuration; except for an accessory dwelling unit which complies with the provisions of Chapter 25.59; (4) For an addition to an existing single-family dwelling and for accessory dwelling units, required uncovered spaces may be provided in tandem configuration and may extend: (A) In areas with sidewalks, to the inner edge of the sidewalk, (B) In areas without sidewalks to five (5) feet from the inner edge of the curb, (C) In areas without either sidewalks or curbs, to five (5) feet from the edge of pavement. Section 20: Chapter 25.70 Off -Street Parking, Section 25.70.032 Requirements for duplexes, apartment hotels and condominium, is amended as follows: Chapter 25.70 OFF-STREET PARKING 25.70.032 Requirements for duplexes, apartment hotels and condominium. (a) Except as specified below for properties within certain portions of downtown Burlingame as identified in Figure 3-4 of the Burlingame Downtown Specific Plan, the following are parking requirements for duplexes, apartments, apartment hotels and condominiums: (1) There shall be at least one and one-half (1 1/2) permanently maintained parking spaces on the same lot with the building for each studio or one -bedroom dwelling unit in the building. (2) For each dwelling unit containing two (2) bedrooms, or two (2) potential bedrooms, there shall be provided at least two (2) parking spaces. (3) For each dwelling unit containing three (3) or more bedrooms, there shall be provided at least two and one-half (2 1/2) parking spaces. (b) For properties within the area identified in Figure 3-4 of the Burlingame Downtown Specific Plan, the following are parking requirements for duplexes, apartments, apartment hotels and condominiums: (1) There shall be at least one permanently maintained parking space on the same lot with the building for each studio or one -bedroom dwelling unit in the building. (2) For each dwelling unit containing two (2) bedrooms, or two (2) potential bedrooms, there shall be provided at least one and one-half (1 1/2) permanently maintained parking spaces. 20 ORDINANCE NO. (3) For each dwelling unit containing three (3) or more bedrooms, there shall be provided at least two (2) permanently maintained parking spaces. (c) Accessory dwelling units Where accessory dwelling units are allowed in compliance with Chapter 25 59 parking shall be provided with the provisions of Chapter 25.59. (ed) Eighty (80) percent of the total required parking spaces shall be covered or within a garage or carport. Parking spaces shall not be situated in the front or side setback areas. A vehicle shall not be parked between a structure and the front or side property lines except in a garage, driveway or other approved parking. (de) Inoperative vehicles, vehicles, vehicle parts, boats and campers (as defined by Section 243 of the Vehicle Code) shall not be stored or parked in driveways or between a structure and front or side property lines. Division 3: If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The Council declares that it would have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid. Division 4: This Ordinance shall be published in a newspaper of general circulation in accordance with California Government Code Section 36933, published, and circulated in the City of Burlingame, and shall be in full force and effect thirty (30) days after its final passage. Emily Beach, Mayor I, Meaghan Hassel -Shearer, City Clerk of the City of Burlingame, certify that the foregoing ordinance was introduced at a public hearing at a regular meeting of the City Council held on the 2nd day of March, 2020, and adopted thereafter at a regular meeting of the City Council held on the day of 2020, by the following vote: AYES: Councilmembers: NOES: Councilmembers: ABSENT: Councilmembers: Meaghan Hassel -Shearer, City Clerk 21 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME FINDING THAT ADOPTION OF AMENDMENTS TO TITLE 25 (ZONING CODE) OF THE BURLINGAME MUNICIPAL CODE, CHAPTERS 25.59, 25.60, 25.26 AND 25.70 TO UPDATE EXISTING ACCESSORY DWELLING UNIT REGULATIONS TO BE CONSISTENT WITH RECENTLY ADOPTED AMENDMENTS TO CALIFORNIA GOVERNMENT CODE SECTIONS 65852.2 AND 65852.22 RELATED TO ACCESSORY DWELLING UNITS, IS STATUTORILY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO CEQA GUIDELINES SECTION 15282 (H) WHICH EXEMPTS THE ADOPTION OF AN ORDINANCE REGARDING SECOND UNITS IN A SINGLE-FAMILY OR MULTIFAMILY RESIDENTIAL ZONE BY A CITY OR COUNTY TO IMPLEMENT THE PROVISIONS OF SECTIONS 65852.1 AND 6582.2 OF THE GOVERNMENT CODE AS SET FORTH IN SECTION 21080.17 OF THE PUBLIC RESOURCES CODE. THE CITY COUNCIL OF THE CITY OF BURLINGAME finds as follows: Section 1. On October 19, 2019, the State of California enacted legislation known as Assembly Bill 881, Assembly Bill 68, and Senate Bill 13, which, among other things, amended Sections 65852.2 and 65852.22 of the Government Code pertaining to accessory dwelling units and junior accessory dwelling units. Section 2. The State of California has enacted legislation to encourage the construction of accessory dwelling units and junior accessory dwelling units in single family and multifamily residential zones, as further defined in this ordinance. Section 3. The revisions to State Law became effective on January 1, 2020. Local jurisdictions are required to comply with the new requirements, which supersede local ordinances. The proposed zoning amendments would ensure that the Burlingame Municipal Code is consistent with the new recently adopted State regulations and to help clarify and improve various provisions of the accessory dwelling unit law to promote the development of accessory dwelling units and junior accessory dwelling units. Section 4. Government Codes Sections 65852.2 and 65852.22 require the City of Burlingame to adopt zoning regulations in compliance with State law provisions regarding accessory dwelling units and junior accessory dwelling units. Section 5. At a duly noticed public hearing was held on March 2, 2020, the City Council introduced an ordinance amending Title 25 — (Zoning Code) of the Burlingame Municipal Code, Chapters 25.59, 25.60, 25.26, and 25.70 to update existing Accessory Dwelling Unit regulations to be consistent with recently adopted amendments to California Government Code Sections 65852.2 and 65852.22 related to accessory dwelling units. RESOLUTION NO. Section 4. The proposed amendments to the zoning code related to accessory dwelling units are Statutorily Exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15282(h) which exempts the adoption of an ordinance regarding second units in a single-family or multifamily residential zone by a city or county to implement the provisions of Sections 65852.1 and 6582.2 of the Government Code as set forth in Section 21080.17 of the Public Resources Code. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BURLINGAME THAT adoption of the amendments to Title 25 (Zoning Code) of the Burlingame Municipal Code, Chapters 25.59, 25.60, 25.26, and 25.70 to update existing Accessory Dwelling Unit regulations to be consistent with recently adopted amendments to California Government Code Sections 65852.2 and 65852.22 related to accessory dwelling units is Statutorily Exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15282(h) which exempts the adoption of an ordinance regarding second units in a single-family or multifamily residential zone by a city or county to implement the provisions of Sections 65852.1 and 6582.2 of the Government Code as set forth in Section 21080.17 of the Public Resources Code. Emily Beach, Mayor I, MEAGHAN HASSEL-SHEARER, City Clerk of the City of Burlingame, certify that the foregoing resolution was adopted at a regular meeting of the City Council held on the 16'h day of March, 2020 by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: Meaghan Hassel -Shearer, City Clerk CLEAN VERSION PROPOSED CODE CHANGES TO CHAPTERS 25.59, 25.60, 25.26 AND 25.70 OF THE BURLINGAME MUNICIPAL CODE RELATED TO ACCESSORY DWELLING UNITS TO BE CONSISTENT WITH CALIFORNIA GOVERNMENT CODE SECTIONS 65852.2 AND 65852.22 Chapter 25.59 ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS Sections: 25.59.010 Purpose. 25.59.015 Definitions. 25.59.020 Applications and processing. 25.59.030 Appeal. 25.59.040 Revocation of permit. 25.59.055 Minimum standards for eligibility. 25.59.060 General requirements and restrictions. 25.59.070 Development standards for accessory dwelling units. 25.59.080 Development standards for junior accessory dwelling units. 25.59.090 Accessory dwelling units on multifamily residential properties. 25.59.100 Design. 25.59.110 Parking. 25.59.120 Utilities. 25.59.130 Delay of enforcement of building standards. 25.59.010 Purpose. The purpose of this chapter is to regulate accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) in compliance with California Government Code Sections 65852.2 and 65852.22. This chapter is intended to implement the Housing Element of the Burlingame General Plan by providing for additional housing opportunities. This will be accomplished by increasing the number of units available within existing neighborhoods while maintaining the primarily single-family and multifamily residential character of the area, and establishing standards for the development and occupancy of accessory dwelling units and junior accessory dwelling units to ensure that they are compatible with neighboring uses and structures, adequately equipped with public utility services, safe for human occupancy, and do not create unreasonable traffic and safety impacts. In cases of conflict between this chapter and any other provision of this title, the provisions of this chapter shall prevail. To the extent that any provision of this chapter is in conflict with State law, the applicable provision of State law shall control, but all other provisions of this chapter shall remain in full force and effect. An accessory residential dwelling unit or junior accessory dwelling unit which conforms to the requirements of this chapter shall not be considered to exceed the allowable density for the lot upon which it is located and shall be deemed to be a residential use which is consistent with the existing General Plan and zoning designations for the lot. 25.59.015 Definitions. The following terms shall have the following meanings for this chapter only and shall supersede the terms defined by Chapter 25.08 (Definitions): (a) "Accessory dwelling unit" or "ADU" means an attached or detached residential dwelling unit ancillary to a primary dwelling unit that provides complete independent living facilities for one (1) or more persons and is located on a lot with a proposed or existing primary residence. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single family or multifamily dwelling is or will be situated. An accessory dwelling unit also includes an efficiency unit, as defined in Section 17958.1 of the Health and Safety Code, and a manufactured home, as defined in Section 18007 of the Health and Safety Code. This Chapter recognizes three types of accessory dwelling units as defined below. Where a proposed accessory dwelling unit does not clearly fall into one of the defined types, the Community Development Director shall make a determination pursuant to Code Section 25.16.150. (1) "Attached accessory dwelling unit' means an accessory dwelling unit that is constructed as a physical expansion (i.e., addition) of an existing primary dwelling unit, including construction of a new basement underneath a primary dwelling unit to accommodate an accessory dwelling unit. (2) "Detached accessory dwelling unit' means an accessory dwelling unit that is constructed as a separate structure from the primary dwelling unit; or contained within the existing space of an accessory structure (as defined herein). (3) "Interior accessory dwelling unit' means an accessory dwelling unit that is contained within the existing space of a primary dwelling unit, including within its living area, basement, or attached garage; constructed as part of a proposed primary dwelling unit; or created from non -livable space of a multifamily dwelling. (b) "Accessory structure" means a structure that is accessory and incidental to a dwelling located on the same lot. (c) "Efficiency kitchen" means a kitchen that includes each of the following: (1) A sink and cooking facility with appliances (e.g., microwave, toaster oven or hot plate). E (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) "Junior accessory dwelling unit' or "JADU" means a residential dwelling unit that: (1) is no more than 500 square feet in size, (2) is contained entirely within an existing or proposed single family dwelling, (3) includes its own separate sanitation facilities (bathroom containing a sink, toilet, and shower or tub), or may share sanitation facilities with the existing or proposed single family structure, and (4) includes an efficiency kitchen, as defined in subsection (c) above. (e) "Living area" means the interior habitable floor area of a dwelling unit, including basements and attics, but does not include a garage or any accessory structure. (f) "Nonconforming zoning conditions" means a physical improvement on a property that does not conform with current zoning standards. (g) "Passageway" means a pathway that is unobstructed clear to the sky and extends from a street to the entrance of an accessory dwelling unit or junior accessory dwelling unit. (h) "Public transit' means a location, including, but not limited to, a bus stop or train station, where the public may access buses, trains, subways, and other forms of transportation that charge set fares, run on fixed routes, and are available to the public. (i) "Tandem parking" means a parking configuration where two (2) or more automobiles are parked on a driveway or in any other location on a lot, lined up behind one another. 25.59.020 Applications and processing (a) Applications for ADU and JADU permits shall be in writing and filed with the Community Development Department on a form approved by the Community Development Director. (b) As established by council resolution, a fee will be charged for an application for an ADU or JADU permit under this chapter. All ADUs and JADUs are also subject to building permit fees. (c) Within sixty (60) days of receipt of a complete application, the Community Development Department staff shall ministerially process for approval any application for an ADU or JADU permit pursuant to this chapter. Incomplete applications will be returned with an explanation of what additional information is required. Upon finding that the ADU or JADU meets the requirements of this chapter, the application shall be approved ministerially without discretionary review or public hearing and the applicant may proceed to acquire a building permit. All ADUs and JADUs are categorically exempt from CEQA pursuant to Sections 15301 and 15303 of the CEQA guidelines. 3 (d) If an application for an attached ADU or JADU is submitted with an application for an addition to an existing single family dwelling or construction of a new single family dwelling that is subject to design review or other discretionary permit for the same parcel, the application for the ADU or JADU permit shall not be acted upon until the application for design review or other discretionary permit is approved. Following the approval for design review or other discretionary permit for the primary dwelling unit, the ADU or JADU application will be ministerially processed within 60 days of receipt of a complete application and approved if it meets the requirements of this chapter. (a) If the applicant requests a delay, the 60-day time period for approval shall be tolled for the period of the delay. 25.59.030 Appeal. The applicant that requested the accessory dwelling unit permit may appeal the community development director's denial of the request. The appeal shall be submitted to the community development director in writing within ten (10) days after the date of the community development director's decision. The appeal shall be heard by the planning commission in a public hearing pursuant to the procedures established for discretionary actions in Chapter 25.16. 25.59.040 Revocation of permit. (a) Grounds. An ADU or JADU permit granted pursuant to this chapter may be revoked on any one or more of the following grounds: (1) Failure to comply with the requirements of this chapter; or (2) The ADU or JADU is no longer used for residential purposes; or (3) The parking required by this chapter is no longer provided; or (b) Notice. Written notice to revoke an ADU or JADU permit shall be served on the property owner, as shown on the last equalized assessment roll, either personally or by certified mail, and shall state: (1) The reasons for the proposed revocation. (2) That the proposed action will be taken by the Community Development Director unless a written request for a hearing before the Planning Commission is requested within fifteen (15) days after the date of said notice. If no response is received, the Community Development Director will revoke the ADU or JADU permit as set forth in the notice. (c) Hearing. If a hearing is requested, at least ten (10) days' notice thereof shall be given to the requested party. At the hearing, the property owner may call witnesses and present evidence in his or her behalf. Upon conclusion of the hearing, the Planning Commission will determine whether or not the permit will be revoked. Such determination may be appealed to the city council in the same manner as for appeals taken on applications for the granting of conditional use permits or variances. 121 25.59.055 Minimum standards for eligibility. (a) No minimum lot area is required for creation of an ADU or JADU. (b) An ADU or JADU shall only be allowed on a parcel which has been legally created in compliance with the Subdivision Map Act and Title 26 (Subdivisions), and where the ADU or JADU is developed with an existing or proposed single family dwelling, except for ADUs constructed on multifamily residential properties pursuant to Section 25.59.090. (c) ADUs may only be permitted in districts zoned to allow single family dwelling or multifamily dwelling residential uses as a permitted use. ADUs are also permitted on any parcel that has a current and valid nonconforming single family or multifamily residential use, so long as the ADU complies with all other portions of this chapter. (d) JADUs may only be permitted in districts zoned to allow a single family dwelling residential use as a permitted use. JADUs are also permitted on any parcel that has a current and valid nonconforming single family residential use, so long as the JADU complies with all other portions of this chapter. 25.59.060 General requirements and restrictions. The following requirements and restrictions apply to all existing and new ADUs and JADUs, as applicable: (a) ADUs and JADUs shall comply with all applicable provisions of this title and all applicable building, health and fire codes. However, ADUs and JADUs shall not be required to provide fire sprinklers unless required for the primary single family dwelling or multifamily dwelling structure. (b) All development standards contained in the underlying zoning district, including Chapter 25.60, shall apply to ADUs and JADUs unless they are inconsistent with the provisions of this chapter, in which case the development standards of this chapter shall apply. (c) Accessory dwelling units. (1) ADUs may be rented separately from the single family dwelling or multifamily dwelling structure, but may not be sold or otherwise conveyed separately from the other dwellings on the lot. (2) ADUs may not be rented for fewer than 30 consecutive calendar days. (3) ADUs are not subject to any owner -occupancy requirement. (d) Junior accessory dwelling units. (1) JADUs may be rented separately from the single family dwelling, but may not be sold or otherwise conveyed separately from the single family dwelling on the lot. (2) JADUs may not be rented for fewer than 30 consecutive calendar days. 5 (3) JADUs are subject to an owner -occupancy requirement. A person with legal or equitable title to the property shall reside on the property in either the primary dwelling or JADU as that person's legal domicile and permanent residence. However, the owner -occupancy requirement of this paragraph does not apply if the property is entirely owned by another governmental agency, land trust, or housing organization. Prior to issuance of a building permit for a JADU, the owner shall record a covenant in a form prescribed by the city attorney, which shall run with the land and provide for the following: (i) A prohibition on the sale of the JADU separate from the sale of the single family dwelling; (ii) A restriction on the size and attributes of the JADU consistent with this section; (iii) A prohibition against renting the property for fewer than 30 consecutive calendar days; and (iv) A requirement that either the primary residence or the JADU unit be the owner's bona fide principal residence, unless the owner is a governmental agency, land trust, or housing organization. (e) If an ADU or JADU which was created within a single family dwelling, accessory structure or multifamily dwelling structure is required to be removed or is voluntarily removed, the kitchen facility shall be removed and the space shall be converted back to its original use. If an ADU was newly constructed, (1) the space or structure shall be entirely removed, or (2) the kitchen facility shall be removed and the space shall be converted to a permitted use allowed within the underlying zoning district, or (3) the kitchen facility shall be removed and the applicant shall obtain the appropriate land use permit for the proposed use within the space. (f) Certificates of occupancy. A certificate of occupancy for an ADU shall not be issued before a certificate of occupancy is issued for the primary dwelling unit. (g) Deed restriction. Prior to issuance of a building permit for an ADU or JADU, a deed restriction must be recorded against the title of the property in the County Recorder's office and a copy filed with the Community Development Department. The deed restriction must run with the land and bind all future owners. The form of the deed restriction will be provided by the City and must provide that: (1) The ADU or JADU shall not be sold separately from the primary dwelling. (2) The ADU or JADU is restricted to the approved size and to other attributes allowed by this Section. (3) The deed restriction runs with the land and may be enforced against future property owners. (4) The deed restriction may be removed if the owner eliminates the ADU or JADU, as evidenced by, for example, removal of the kitchen facilities. To remove the deed restriction, an owner may make a written request of the City, providing evidence that the ADU or JADU has in fact been eliminated. The City may then determine whether the evidence supports the claim that the ADU or JADU has been eliminated. Appeal may be taken from the City's determination consistent with other provisions of this Code. If the ADU or JADU is not entirely physically 6 removed, but is only eliminated by virtue of having a necessary component of an ADU or JADU removed, the remaining structure and improvements must otherwise comply with applicable provisions of this Code. (4) The deed restriction is enforceable by the Community Development Director or his or her designee for the benefit of the City. Failure of this property owner to comply with the deed restriction may result in legal action against the property owner, and the City is authorized to obtain any remedy available to it at law or equity, including, but not limited to, obtaining an injunction enjoining the use of the ADU or JADU in violation of the recorded restrictions or abatement of the illegal unit. 25.59.070 Development standards for accessory dwelling units. An ADU shall be constructed only in accordance with the following development standards. (a) Location and number. Only one (1) ADU shall be permitted per lot which contains an existing or proposed single family dwelling. ADUs may be located in any of the following: (1) Within the walls of an existing or proposed single family dwelling; (2) Attached to an existing or proposed single family dwelling; (3) Within an existing accessory structure; or (4) Detached from the single family dwelling, but located on the same lot as the existing or proposed single family dwelling. (b) Minimum size. No ADU shall be smaller than the size required to allow an efficiency unit pursuant to Health and Safety Code Section 17958.1. (c) Maximum size. The maximum floor area for an ADU shall be 850 square feet or 1,000 square for two (2) or more bedrooms. (1) If the ADU is created by converting space within an existing single family dwelling or accessory structure: (i) an expansion limited to 150 square foot beyond the physical dimensions of the existing single family dwelling or accessory structure is permitted strictly to accommodate ingress and egress to the ADU; this additional square footage shall be exempt from lot coverage and floor area ratio requirements. The side and rear setback requirements for the single family dwelling may be reduced to no less than four (4) feet to accommodate an exterior stair and landing that provide required access to the ADU if it is located on the second story; and (ii) the ADU must have side and rear setbacks sufficient for fire and safety, as dictated by applicable building and fire codes. 7 (d) Floor area ratio and lot coverage. An ADU measuring no more than 850 square feet in size shall be exempt from floor area ratio and lot coverage requirements. An ADU greater than 850 square feet shall comply with the floor area ratio and lot coverage regulations as specified by the applicable zoning district. (e) Maximum living area within a single family dwelling. An attached or interior ADU shall not exceed fifty percent (50%) of the living area of the single family dwelling, except to the extent necessary to allow an ADU of up to 850 square feet. (f) Allowable rooms. An ADU shall be limited to a maximum of two (2) bathrooms and two (2) bedrooms (defined as a habitable room with an area not less than 70 square feet as described by California Building Code). An ADU shall also contain no more than one (1) kitchen facility. (g) Setbacks. An ADU (attached or detached) shall conform to the following setback standards: (1) A setback of four (4) feet is required from the side and rear property lines; however, no setbacks shall be required under the following circumstances: (i) Existing livable space or an existing accessory structure that is converted, in whole or in part, to an ADU; (ii) The ADU is constructed in the same location and to the same dimensions as an existing structure that is demolished solely for the purpose of constructing the ADU; or (iii) Construction of a new detached ADU entirely located within the rear 30% of the lot. If any portion of the detached ADU is located forward of the rear 30% of the lot, it shall comply with the setback requirements of the applicable zoning district in which it is located, but no more than four (4) foot side or rear setbacks shall be required. (2) There shall be a minimum four (4) foot separation between a detached ADU and any other structure on the lot. (3) Where an existing single family dwelling is located within the rear 60% of the lot, a detached ADU may be located in front of the single family dwelling, but not in any portion of the required front setback. (h) Maximum height and stories. (1) Detached ADUs. (i) All detached ADUs shall be limited to one (1) story in height and shall not be constructed above detached garages or detached accessory structures except for accessory dwelling units created entirely within an existing legal two-story detached accessory structure. (ii) The maximum allowed building height for a detached ADU is 16 feet, as measured from average adjacent grade to the top of the highest roof ridge; the roof shall be pitched from ridge to plate on at least two (2) sides, and the ridge shall be no closer than five (5) feet to a side property line. n (iii) The maximum allowed plate height is 9 feet, as measured from average adjacent grade to the top of plate. (2) Attached ADUs. Attached ADUs may be constructed on the first or second floor of an existing or proposed single family dwelling and shall be subject to the height requirements of the applicable zoning district in which it is located. (i) Entrance. An ADU shall have a separate exterior entrance from the main entrance to the existing or proposed single family dwelling. For an ADU located entirely on a second story, this shall require a separate interior or exterior stairway. The entrance to the ADU shall not face the same public street as the entrance to the single family dwelling, unless it is the only location determined to comply with applicable building and fire codes. A passageway from the ADU to a public street may be created, but is not required. 0) Windows and skylights. The placement of windows and skylights in ADUs shall comply with all applicable building and fire codes. (k) Balconies/Decks. Balconies, second story decks, and rooftop terraces are prohibited for all ADUs. (1) Interior Connection. Attached and interior ADUs may, but are not be required, to contain an interior doorway connection between the single family dwelling and ADU. (m) Permanent Foundations. (1) All ADUs shall be permanently attached to a permanent foundation. (2) A recreational vehicle, commercial coach, trailer, motor home, camper, camping trailer, boat or similar vehicle shall not be used as an ADU. (n) Existing ADUs built before January 1, 1954. For existing ADUs built before January 1, 1954 the following additional criteria shall be met: (1) The ADU shall conform to the requirements of the California Health and Safety Code Section 17920.3, and the Uniform Housing Code as adopted by Section 17922; (2) Improvements may be made to the ADU so long as it conforms to the requirements of this chapter and corrects any violation of Health and Safety Code Section 17920.3 and the Uniform Housing Code. 0 25.59.080 Development standards for junior accessory dwelling units. A junior accessory dwelling unit shall be constructed only in accordance with the following development standards: (a) Location. The JADU may only be located within the walls of an existing or proposed single family dwelling. The JADU must have side and rear setbacks sufficient for fire and safety, as dictated by applicable building and fire codes. (b) Number. Only one (1) JADU shall be permitted per lot which contains an existing or proposed single family dwelling. A JADU may be allowed in conjunction with one (1) detached ADU on the same lot as long as the ADU does not exceed 850 square feet. (c) Minimum size. No JADU shall be smaller than the size required to allow an efficiency unit pursuant to Health and Safety Code Section 17958.1. (d) Maximum size. The JADU shall not exceed 500 square feet in area. An expansion limited to 150 square foot beyond the physical dimensions of the existing single family dwelling is permitted strictly to accommodate ingress and egress to the JADU; this additional square footage shall be exempt from lot coverage and floor area ratio requirements. The side and rear setback requirements for the single family dwelling may be reduced to no less than four (4) feet to accommodate an exterior stair and landing that provide required access to the JADU if it is located on the second story. (e) Kitchen. The JADU shall contain an efficiency kitchen satisfying the following the criteria: (1) Contains a sink and cooking facilitywith appliances (e.g., microwave, toaster oven or hot plate). (2) Contains a food preparation counter and storage cabinets that are of reasonable size in relation to the size of the JADU. (f) Bathroom. The JADU may have a separate bathroom, or may share a bathroom with the single family dwelling. The bathroom shall contain a sink, toilet, and shower or tub. If the bathroom is shared, there must be a connecting door between the JADU and the single family dwelling. (g) Entrance. The JADU shall have a separate exterior entrance from the main entrance to the existing or proposed single family dwelling. The entrance to the JADU shall not face the same public street as the entrance to the primary dwelling, unless it is the only location determined to comply with applicable building and fire codes. A passageway from the ADU to a public street may be created, but shall not be required. (h) A JADU is not considered a separate or new dwelling for purposes of fire safety or life safety. 10 25.59.090 Accessory dwelling units on multifamily residential properties. The following requirements and restrictions apply to creation of ADUs on multifamily residential properties. (a) Forthe purposes of this section, the term "multifamily dwelling structure" means two (2) or more residential units contained within one (1) or more buildings on the same lot. (b) Conversion. A minimum of one (1) and up to 25 percent of the existing dwelling units within a multifamily dwelling structure may be created within existing non -livable space(s), including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages, provided that the dwellings comply with building and fire codes. An ADU shall not be created within any portion of the habitable area of an existing dwelling unit in a multifamily structure. When calculating the number of allowed ADUs based on the percentage of existing multifamily units, round down to the nearest integer. (1) Spaces required as part of a condition of approval or zoning requirement (e.g. bike storage room) cannot be converted to ADUs. (c) New detached ADUs. In addition to ADUs allowed by subsection (b), up to two (2) new detached accessory dwelling units may be allowed provided that the height does not exceed 16 feet and that four (4) foot side and rear yard setbacks are maintained. These ADUs shall be subject to the standards, requirements, and restrictions of this Chapter. (1) New detached ADUs shall not be located between a multifamily dwelling structure and property line abutting a public street; provided, where an existing multifamily dwelling structure is located within the rear 60% of the lot, a detached ADU may be located in front of the multifamily dwelling structure, but not in any portion of the required front setback. (2) There shall be a minimum four (4) foot separation between a detached ADU and any other structure on the lot. 25.59.100 Design. The design of accessory dwelling units shall conform with the following standards: (a) Attached and detached accessory dwelling units. Attached and detached ADUs shall incorporate the same or similar architectural features and building materials as the primary structure located on the property. Compatibility with the primary structure includes coordination of exterior building and roofing materials, roof slope, and other architectural features. (b) Interior accessory dwelling units. Interior accessory dwelling units contained within the existing space of an attached garage shall include removal of garage doors which shall be replaced with architectural features the same as those of the primary dwelling unit, including the same wall cladding, window type and trim that remove any appearance that the structure was originally a garage. This wall shall contain at least one (1) window that is consistent in size and type with other existing windows on the same building fagade. 11 25.59.110 Parking. (a) Unless otherwise provided in this section, one (1) off-street parking space shall be provided for the ADU in addition to the off-street parking spaces required for the single family dwelling or multifamily residential structure. All parking shall be provided on a hard, all-weather surface. (b) The parking space may be provided in setback areas or as tandem parking, unless specific findings are made that parking in setback areas or tandem parking is not feasible based upon specific site or regional topographical or fire and life safety conditions. (c) No parking shall be required for an ADU in any of the following instances: (1) The ADU is located within one-half mile walking distance of public transit. For the purposes of this section only, public transit is defined as a location, including, but not limited to, a bus stop or train station, where the public may access buses, trains, subways, and other forms of transportation that charge set fares, run on fixed routes, and are available to the public. (2) The ADU is located within an architecturally and historically significant historic district. (3) The ADU is part of the proposed or existing primary residence or an existing accessory structure. (4) When on -street parking permits are required but not offered to the occupant of the ADU. (5) When there is an established car share vehicle stop located within one block of the ADU. (d) No parking shall be required for a JADU and any parking displaced by its construction, including conversion of all or part of an existing attached garage, are not required to be replaced. (e) When a garage, carport, or covered parking structure is demolished in conjunction with the construction of an ADU or converted to an ADU, those off-street parking spaces are not required to be replaced. 25.59.120 — Utilities. (a) No ADU or JADU shall be permitted if it is determined that there is not adequate water or sewer service to the property. (b) Except as provided in subsection (c), an ADU may be required to have a new or separate utility connection, including a separate sewer lateral, between the ADU and the utility. A connection fee or capacity charge may be charged that is proportionate to the size in square feet of the ADU or its drainage fixture unit (DFU) values. Separate electric and water meters shall be required for the ADU. (c) The following ADUs shall be exempt from any requirement to install a new or separate utility connection and to pay any associated connection or capacity fees or charges: 12 (1) Junior accessory dwelling units. (2) Standard ADUs converted from interior space, unless the unit is constructed within a new single-family home. 25.59.130 — Delay of enforcement of building standards. (a) Prior to January 1, 2030, the owner of an ADU that was built before January 1, 2020, may submit a written request to the Chief Building Official requesting that correction of any violation of building standards be delayed for five (5) years. For purposes of this section, "building standards" refers to those standards enforced by local agencies under the authority of Section 17960 of the California Health and Safety Code. (b) The Chief Building Official will grant the application if the Chief Building Official determines that enforcement of the building standard is not necessary to protect health and safety. In making this determination, the Chief Building Official will consult with the Fire Marshal. (c) No applications pursuant to this section shall be approved on or after January 1, 2030. However, any delay that was approved by the city before January 1, 2030, shall be valid for the full term of the delay that was approved at the time of the approval of the application. (d) Until January 1, 2030, any notice to correct a violation of building standard that is issued to the owner of an ADU built before January 1, 2020, shall include a statement that the owner has a right to request a delay in enforcement of the building standard for an ADU pursuant to this section. CHAPTER 25.60 ACCESSORY STRUCTURES IN R-1 AND R-2 DISTRICTS 25.60.010 Conditional use permit requirements. Accessory structures in the R-1 or R-2 Districts shall be a conditional use requiring a conditional use permit if any of the following will exist: (a) Two (2) or more accessory structures, each having over one hundred twenty (120) square feet gross floor area, will exist on a single lot, except that there may be two (2) accessory structures if one is an accessory dwelling unit which complies with the provisions of Chapter 25.59 and obtains an accessory dwelling unit permit; (b) Any single accessory structure will exceed six hundred (600) square feet of gross floor area; except that an accessory structure containing an accessory dwelling unit which complies with the provisions of Chapter 25.59 and obtains an accessory dwelling unit permit may be up to 850 square feet or 1,000 square feet for two (2) or more bedrooms; 13 (c) All accessory structures on a single lot will exceed a total of eight hundred (800) square feet gross floor area; except that an accessory structure containing an accessory dwelling unit which complies with the provisions of Chapter 25.59 and obtains an accessory dwelling unit permit may be up to 850 square feet or 1,000 square feet for two (2) or more bedrooms; (d) An accessory structure will occupy any portion of the lot in front of the main building; provided, where a dwelling has been erected on the rear sixty (60) percent of the lot prior to January 15, 1954, a garage may be erected in front of the main building, but not in any portion of the front setback; (e) An accessory structure will be erected closer than four (4) feet to any other structure on the same lot; (f) Accessory structures will cover more than fifty (50) percent of the rear thirty (30) percent of a lot; an accessory structure containing an accessory dwelling unit which complies with the provisions of Chapter 25.59 and obtains an accessory dwelling unit permit shall not be included in this calculation; (g) The plate line of the accessory structure will be more than nine (9) feet above grade at the closest point between the plate line and adjacent grade; (h) The roof height of the accessory structure will exceed ten (10) feet above grade, except the height may be increased one foot for each foot of separation from an adjacent property line, up to a maximum height of fourteen (14) feet, provided: (1) Where the lot slopes more than ten (10) percent at the location of the accessory structure, the maximum height shall be four (4) feet above the plate line, (2) The portion of the structure at the rear property line may have a maximum height of fourteen (14) feet if the structure has a pitched roof on both sides and the rear plate line does not exceed nine (9) feet above the natural grade, (3) The roof height of an accessory structure may have a maximum height of fifteen (15) feet above grade when the roof is pitched from ridge to plate on at least two (2) sides, and the ridge is no closer than five (5) feet to a side property line, and the rear plate line does not exceed nine (9) feet above the natural grade; except that an accessory structure containing an accessory dwelling unit which complies with the provisions of Chapter 25.59 and obtains an accessory dwelling unit permit may be up to sixteen (16) feet above grade; and (4) No portion of the space within any accessory structure between the top of plate and the lowest portion of the roof structure including any dormer shall exceed seven (7) feet in height; (i) Water or sewer connections to the accessory structure will exceed building code minimums or the accessory structure will contain any shower, bath or toilet, except for an accessory structure containing an accessory dwelling unit which complies with the provisions of Chapter 25.59 and obtains an accessory dwelling unit permit; 14 Q) The accessory structure will enclose mechanical equipment, excluding air conditioning equipment, which is designed to operate on a regular or continuous basis, which may be objectionable because of loudness, hours of operation, odor or other reason, and which is to be located less than twenty (20) feet from any structure for habitation, or less than ten (10) feet from any property line; provided such shall be allowed without a special permit if the building official approves the structure as adequately sound insulated; (k) Storage of household goods, tools or equipment in the accessory structure will exceed ten (10) percent of the gross floor area of the main dwelling structure; (1) Any portion of the accessory structure will be used for accessory living quarters, recreation purposes or for use in a home occupation; except for an accessory structure containing an accessory dwelling unit which complies with the provisions of Chapter 25.59 and obtains an accessory dwelling unit permit does not require a conditional use permit; (m) The accessory structure will be a greenhouse, trellis, lanai, patio shelter or similar structure exceeding one hundred twenty (120) square feet of gross floor area. CHAPTER 25.26 R-1 DISTRICT REGULATIONS 25.26.035 Uses allowed with a special permit. The following are uses allowed in the district with a special permit: (a) Attached garages for single-family dwelling units; (b) Reduction in the number of parking spaces existing on site; except where the on -site parking requirement is met per Chapter 25.70 for the existing units on -site and the reduction in the number of parking spaces is for the purpose of creating an accessory dwelling unit which complies with the provisions of Chapter 25.59; (c) Construction exceeding the limits of the declining height envelope; (d) An accessory structure exempt from setback restrictions located within the rear forty (40) percent of the lot; (e) An accessory structure that is in the rear of the lot and that is more than twenty-eight (28) feet in width or depth, except for an accessory structure containing an accessory dwelling unit which complies with the provisions of Chapter 25.59 and obtains an accessory dwelling unit permit; 15 CHAPTER 25.70 OFF-STREET PARKING REGULATIONS 25.70.010 Vehicle parking spaces to be provided. (a) Parking Required. At the time of erection of any building or structure, or at the time any building or structure is enlarged or increased in capacity, there shall be provided off-street parking spaces with adequate and proper provision for ingress and egress by standard size automobiles. (b) Parking with Remodel or Reconstruction. When any building is remodeled, reconstructed or changed in use by the addition of dwelling units, gross floor area, seating capacity, change in type of use or intensified use, such additional garage or parking facilities as may be required must be provided, except for accessory dwelling units and junior accessory dwelling units approved per Chapter 25.59. (c) Minimum Requirements. The regulations which follow are the minimum requirements unless specific requirements are made for a particular use in a district. Additional spaces may be provided. Unless otherwise expressly permitted by a section of this chapter, parking required by this chapter is to be provided on the same lot as the use for which the parking is required. 25.70.030 Requirements for single-family dwellings. The following are parking requirements for single-family dwellings. (a) Parking Space Requirements. Each single-family dwelling shall provide off-street parking spaces for at least two (2) vehicles, one of which must be covered by a garage or carport. The following further requirements apply to certain additions and to new single-family dwellings: (1) An existing single-family dwelling increased in size to three (3) or four (4) bedrooms and anew single-family dwelling with up to four (4) bedrooms shall provide off-street parking spaces to current code dimensions for at least two (2) vehicles, one of which must be covered by a garage or carport; (2) A single-family dwelling hereafter increased in size to five (5) or more bedrooms and a new single-family dwelling with five (5) or more bedrooms shall provide off-street parking to current code dimensions for at least three (3) vehicles, two (2) of which must be covered by a garage or carport; (3) For the purposes of subsections (a)(1) and (2) of this section, an existing garage not less than eighteen (18) feet wide and twenty (20) feet deep interior dimension shall be considered to provide two (2) covered off-street parking places; (4) For additions to existing single-family dwellings, an existing garage with an eighteen (18) foot depth interior dimension shall be considered to meet the dimensional requirements for a parking space; (5) Bedrooms that are within accessory dwelling units or junior accessory dwelling units shall not be counted toward the overall number of bedrooms for the primary single-family dwelling on the lot on which it is located; parking for accessory dwelling units shall comply with the provisions of Chapter 25.59. IN (b) Parking Aisles and Driveways. Covered parking spaces shall have a twenty-four (24) foot back-up area or be designed to be entered or exited in no more than three (3) maneuvers. All spaces must allow entry in three (3) maneuvers in the forward direction. (c) Parking Limitations. (1) A vehicle shall not be parked between a structure and the front or side property line except in a garage, driveway or other approved parking; except for parking for an accessory dwelling unit which complies with the provisions of Chapter 25.59; (2) Inoperative vehicles, vehicle parts, boats and campers (as defined by Section 243 of the Vehicle Code) shall not be stored or parked in driveways or between a structure and front or side property line; (3) Required covered parking shall not be provided in tandem configuration; except for an accessory dwelling unit which complies with the provisions of Chapter 25.59; (4) For an addition to an existing single-family dwelling and for accessory dwelling units, required uncovered spaces may be provided in tandem configuration and may extend: (A) In areas with sidewalks, to the inner edge of the sidewalk, (B) In areas without sidewalks to five (5) feet from the inner edge of the curb, (C) In areas without either sidewalks or curbs, to five (5) feet from the edge of pavement. 25.70.032 Requirements for duplexes, apartment hotels and condominium. (a) Except as specified below for properties within certain portions of downtown Burlingame as identified in Figure 3-4 of the Burlingame Downtown Specific Plan, the following are parking requirements for duplexes, apartments, apartment hotels and condominiums: (1) There shall be at least one and one-half (1 1/2) permanently maintained parking spaces on the same lot with the building for each studio or one -bedroom dwelling unit in the building. (2) For each dwelling unit containing two (2) bedrooms, or two (2) potential bedrooms, there shall be provided at least two (2) parking spaces. (3) For each dwelling unit containing three (3) or more bedrooms, there shall be provided at least two and one-half (2 1/2) parking spaces. (b) For properties within the area identified in Figure 3-4 of the Burlingame Downtown Specific Plan, the following are parking requirements for duplexes, apartments, apartment hotels and condominiums: 17 (1) There shall be at least one permanently maintained parking space on the same lot with the building for each studio or one -bedroom dwelling unit in the building. (2) For each dwelling unit containing two (2) bedrooms, or two (2) potential bedrooms, there shall be provided at least one and one-half (1 1/2) permanently maintained parking spaces. (3) For each dwelling unit containing three (3) or more bedrooms, there shall be provided at least two (2) permanently maintained parking spaces. (c) Accessory dwelling units. Where accessory dwelling units are allowed in compliance with Chapter 25.59, parking shall be provided with the provisions of Chapter 25.59. (d) Eighty (80) percent of the total required parking spaces shall be covered or within a garage or carport. Parking spaces shall not be situated in the front or side setback areas. A vehicle shall not be parked between a structure and the front or side property lines except in a garage, driveway or other approved parking. (e) Inoperative vehicles, vehicles, vehicle parts, boats and campers (as defined by Section 243 of the Vehicle Code) shall not be stored or parked in driveways or between a structure and front or side property lines. m EFFECTIVE PROVISIONS OF 2019 ADU BILLS GOVERNMENT CODE SECTION 65852.2 AS CHAPTERED BY AB 881 65852.2. In Effect Until 2025 (a) (1) A local agency may, by ordinance, provide for the creation of accessory dwelling units in areas zoned to allow single-family or multifamily dwelling residential use. The ordinance shall do all of the following: (A) Designate areas within the jurisdiction of the local agency where accessory dwelling units may be permitted. The designation of areas may be based on eyite -ia that may include, but are not limited the adequacy of water and sewer services and the impact of accessory dwelling units on traffic flow and public safety. A local agency that does not provide water or sewer services shall consult with the local water or sewer service provider regarding the adequacy of water and sewer services before designating an area where accessory dwelling units may be permitted. (13) (i) Impose standards on accessory dwelling units that include, but are not limited to, parking, height, setback, !at ea landscape, architectural review, maximum size of a unit, and standards that prevent adverse impacts on any real property that is listed in the California Register of Historic Dl� -racier Resources. These standards shall not include requirements on minimum lot size. (ii) Notwithstanding clause (i), a local agency may reduce or eliminate parking requirements for any accessory dwelling unit located within its jurisdiction. (C) Provide that accessory dwelling units do not exceed the allowable density for the lot upon which the accessory dwelling unit is located, and that accessory dwelling units are a residential use that is consistent with the existing general plan and zoning designation for the lot. (D) Require the accessory dwelling units to comply with all of the following: (i) The accessory dwelling unit may be rented separate from the primary residence, but may not be sold or otherwise conveyed separate from the primary residence. (ii) The lot is zoned to allow single-family or multifamily dwelling residential use and includes a proposed or existing single family dwelling. (iii) The accessory dwelling unit is either attached to, or located %vithi„ the living area of the within, the proposed or existing primary dwelling dwelling, including attached garages, storage areas or similar uses, or an accessory structure or detached from the proposed or existing primary dwelling and located on the same lot as the proposed or existing primary dwelling. (iv) The total aYea of floor- pae^ ^r If there is an existing primary dwelling, the total floor area of an attached accessory dwelling unit shall not exceed 50 percent of the proposed ^r existing „r•immy dwelhRg living area ^r 1,200 square r^^t, existing primary dwelling. (v) The total floor area of fl^vrrraer-sapaee for a detached accessory dwelling unit shall not exceed 1,200 square feet. (vi) No passageway shall be required in conjunction with the construction of an accessory dwelling unit. (vii) No setback shall be required for an existing gauge living area or accessory structure or a structure constructed in the same location and to the same dimensions as an existing structure that is converted to an accessory dwelling unit or to a portion of an accessory dwelling unit, and a setback of no more than 4ve four feet from the side and rear lot lines shall be required for an accessory dwelling unit that is ^^„CtN11rtad- above a Tara^^. not converted from an existing structure or a new structure constructed in the same location and to the same dimensions as an existing structure. (viii) Local building code requirements that apply to detached dwellings, as appropriate. (ix) Approval by the local health officer where a private sewage disposal system is being used, if required. (x) (I) Parking requirements for accessory dwelling units shall not exceed one parking space per accessory dwelling unit or per bedroom, whichever is less. These spaces may be provided as tandem parking on a driveway. (II) Offstreet parking shall be permitted in setback areas in locations determined by the local agency or through tandem parking, unless specific findings are made that parking in setback areas or tandem parking is not feasible based upon specific site or regional topographical or fire and life safety conditions. (III) This clause shall not apply to a- an accessory dwelling unit that is described in subdivision (d). (xi) When a garage, carport, or covered parking structure is demolished in conjunction with the construction of an accessory dwelling unit or converted to an accessory dwelling unit, a*4- the local agency requires shall not require that those Affstreet offstreet parking spaces be replaced, the replacement spaces may he located in any configur-atien on the same lot as the accessory dwellin unit, ineluding, but not limited to, as eever-ed spaces, uneaver-ed spaees, E)r- tandem spaees, or- by the use of Faechanic-al automobile par -king lifts. This elause shall nat apply to a unit that Js deseribed in subdivision (a). replaced. (xii) Accessory dwelling units shall not be required to provide fire sprinklers if they are not required for the primary residence. (2) The ordinance shall not be considered in the application of any local ordinance, policy, or program to limit residential growth. (3) this subdivision, the ^^^'ic-ation A permit application for an accessory dwelling unit or a junior accessory dwelling unit shall be considered and approved ministerially without discretionary review or a hearing, notwithstanding Section 65901 or 65906 or any local ordinance regulating the issuance of variances or special use mils within "n days after-r-eeeiviag the application. permits. The permitting agency shall act on the application to create an accessory dwelling unit or a junior accessory dwelling unit within 60 days from the date the local agency receives a completed application if there is an existing single-family or multifamily dwelling on the lot. If the permit application to create an accessory dwelling unit or a junior accessory dwelling unit is submitted with a permit application to create a new single-family dwelling on the lot, the permitting agency may delay acting on the permit application for the accessory dwelling unit or the junior accessory dwelling unit until the permitting agency acts on the permit application to create the new single-family dwelling, but the application to create the accessory dwelling unit or junior accessory dwelling unit shall be considered without discretionary review or hearing. If the applicant requests a delay, the 60-day time period shall be tolled for the period of the delay. A local agency may charge a fee to reimburse it for costs *h^* it J result of amendments to this par-agr-aph enaeted dur-jl4g thie Regular- Session of the Legislature,- e, incurred to implement this paragraph, including the costs of adopting or amending any ordinance that provides for the creation of an accessory dwelling unit. (4) An existing ordinance governing the creation of an accessory dwelling unit by a local agency or an accessory dwelling ordinance adopted by a local agency subsequent W the offoetive date f the a4 adding this paragr-aph- shall provide an approval process that includes only ministerial provisions for the approval of accessory dwelling units and shall not include any discretionary processes, provisions, or requirements for those units, except as otherwise provided in this subdivision. In -the p�t that- If a local agency has an existing accessory dwelling unit ordinance that fails to meet the requirements of this subdivision, that ordinance shall be null and void upon the effective date f+ho act adding this par-agr-af4 and that agency shall thereafter apply the standards established in this subdivision for the approval of accessory dwelling units, unless and until the agency adopts an ordinance that complies with this section. (5) No other local ordinance, policy, or regulation shall be the basis for the delay or denial of a building permit or a use permit under this subdivision. (6) This subdivision establishes the maximum standards that local agencies shall use to evaluate a proposed accessory dwelling unit on a lot 7-^^^a f^r residential usta that includes a proposed or existing single-family dwelling. No additional standards, other than those provided in this subdivision, shall be -Wived used or imposed, including any owner -occupant requirement, except that a local agency may require an applieafit for- a ^ H44 issued ^ nt to this subdivision to bean that the property be used for rentals of terms longer than 30 days. (7) A local agency may amend its zoning ordinance or general plan to incorporate the policies, procedures, or other provisions applicable to the creation of an accessory dwelling unit if these provisions are consistent with the limitations of this subdivision. (8) An accessory dwelling unit that conforms to this subdivision shall be deemed to be an accessory use or an accessory building and shall not be considered to exceed the allowable density for the lot upon which it is located, and shall be deemed to be a residential use that is consistent with the existing general plan and zoning designations for the lot. The accessory dwelling unit shall not be considered in the application of any local ordinance, policy, or program to limit residential growth. (b) When a local agency that has not adopted an ordinance governing accessory dwelling units in accordance with subdivision (a) receives an application for a permit to create an accessory dwelling unit pursuant to this subdivision, the local agency shall approve or disapprove the application ministerially without discretionary review pursuant to subdivision (a) within 129 days after- ^R the appli^ati^^. (a). The permitting agency shall act on the application to create an accessory dwelling unit or a junior accessory dwelling unit within 60 days from the date the local agency receives a completed application if there is an existing single-family or multifamily dwelling on the lot. If the permit application to create an accessory dwelling unit or a junior accessory dwelling unit is submitted with a permit application to create a new single-family dwelling on the lot, the permitting agency may delay acting on the permit application for the accessory dwelling unit or the junior accessory dwelling unit until the permitting agency acts on the permit application to create the new single-family dwelling, but the application to create the accessory dwelling unit or junior accessory dwelling unit shall still be considered ministerially without discretionary review or a hearing. If the applicant requests a delay, the 60-day time period shall be tolled for the period of the delay. If the local agency has not acted upon the completed application within 60 days, the application shall be deemed approved. (c) (1) Subject to paragraph (2), a local agency may establish minimum and maximum unit size requirements for both attached and detached accessory dwelling units. (2) Notwithstanding paragraph (1), a local agency shall not establish by ordinance any of the following: (A) A minimum square footage requirement for either an attached or detached accessory dwelling unit that prohibits an efficiency unit. (B) A maximum square footage requirement for either an attached or detached accessory dwelling unit that is less than either of the following: (i) 850 square feet. (ii)1,000 square feet for an accessory dwelling unit that provides more than one bedroom. {c4 (C) A local ageney may establish minimurn -and _m­;;ximH_1_m_ unit ';J Ptq fAr hoth tt h d- a a h d y dwell:,,^ uRits NO R4ini ung Any other minimum or maximum size for an accessory dwelling unit, e� size based upon a percentage of the proposed or existing primary dwelling, shall be established by ^"`mane^ or limits on lot coverage, floor area ratio, open space, and minimum lotsize, for either attached or detached dwellings that does not permit at least an e€€ieiene shall not be required to provide f;spr-inklers if they are et, edforthe. ; lenee. 800 r square foot accessory dwelling unit that is at least 16 feet in height with four foot side and rearyard setbacks to be constructed in compliance with all other local development standards. (d) Notwithstanding any other law, a local agency, whether or not it has adopted an ordinance governing accessory dwelling units in accordance with subdivision (a), shall not impose parking standards for an accessory dwelling unit in any of the following instances: (1) The accessory dwelling unit is located within one-half mile walking distance of public transit. (2) The accessory dwelling unit is located within an architecturally and historically significant historic district. (3) The accessory dwelling unit is part of the proposed or existing primary residence or an accessory structure. (4) When on -street parking permits are required but not offered to the occupant of the accessory dwelling unit. (5) When there is a car share vehicle located within one block of the accessory dwelling unit. (e) (1) Notwithstanding subdivisions (a) to (d), inclusive, a local agency shall ministerially approve an application for a building permitwithin a zene faF single l family use one aeeessor- dwelling rpridi-pre or- aecesserw str-uetui:e. includine, but not limited to, a studio, peal house, or- other- simila the dwell,,,g unit created through this " r^ s within a residential ormixed-use zone to create any of the following: (A) One accessory dwelling unit or junior accessory dwelling unit per lot with a proposed or existing single-family dwelling if all of the following apply: (i) The accessory dwelling unit orjunior accessory dwelling unit is within the proposed space of a single- family dwelling or existing space of a single-family dwelling or accessory structure and may include an expansion of not more than 150 square feet beyond the same physical dimensions as the existing accessory structure. An expansion beyond the physical dimensions of the existing accessory structure shall be limited to accommodating ingress and egress. (ii) The space has exterior access from the proposed or existing single-family dwelling. (iii) The side and rear setbacks are sufficient for fire and safety. (iv) The junior accessory dwelling unit complies with the requirements of Section 65852.22. (B) One detached, new construction, accessory dwelling unit that does not exceed four footside and rear yard setbacks for a lot with a proposed or existing single-family dwelling. The accessory dwelling unit may be combined with a junior accessory dwelling unit described in subparagraph (A). A local agency may impose the following conditions on the accessory dwelling unit: (i) A total floor area limitation of not more than 800 square feet. (ii) A height limitation of 16 feet. (C) (i) 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. (ii) A local agency shall allow at least one accessory dwelling unit within an existing multifamily dwelling and shall allow up to 25 percent of the existing multifamily dwelling units. (D) Not more than two accessory dwelling units that are located on a lot that has an existing multifamily dwelling, but are detached from that multifamily dwelling and are subject to a height limit of 16 feet and four foot rearyard and side setbacks. (2) A local agency shall not require, as a condition for ministerial approval of a permit application for the creation of an accessory dwelling unit or a junior accessory dwelling unit, the correction of nonconforming zoning conditions. (3) The installation of fire sprinklers shall not be required in an accessory dwelling unit if sprinklers are not required for the primary residence. (4) A local agency shall require that a rental of the accessory dwelling unit created pursuant to this subdivision be for a term longer than 30 days. (5) A local agency may require, as part of the application for a permit to create an accessory dwelling unit connected to an onsite water treatment system, a percolation test completed within the last five years, or, if the percolation test has been recertified, within the last 10 years. (6) Notwithstanding subdivision (c) and paragraph (1) a local agency that has adopted an ordinance by July 1, 2018, providing for the approval of accessory dwelling units in multifamily dwelling structures shall ministerially consider a permit application to construct an accessory dwelling unit that is described in paragraph (1), and may impose standards including, but not limited to, design, development, and historic standards on said accessory dwelling units. These standards shall not include requirements on minimum lot size. (f) (1) Fees charged for the construction of accessory dwelling units shall be determined in accordance with Chapter S (commencing with Section 66000) and Chapter 7 (commencing with Section 66012). (2) y-An accessory dwelling HRits unit shall not be considered by a local agency, special district, or water corporation to be a new residential use for t#e- purposes of calculating connection fees or capacity charges for utilities, including water and sewer serid ee service, unless the accessory dwelling unit was constructed with a new single-family dwelling. (3) (A) A local agency, special district, or water corporation shall not impose any impact fee upon the development of an accessory dwelling unit less than 750 square feet. Any impact fees charged for an accessory dwelling unit of 750 square feet or more shall be charged proportionately in relation to the square footage of the primary dwelling unit. (B) For purposes of this paragraph, "impact fee" has the same meaning as the term 'fee" is defined in subdivision (b) of Section 66000, except that it also includesfees specified in Section 66477. "Impactfee" does not include any connection fee or capacity charge charged by a local agency, special district, or water corporation. P4 (4) For an accessory dwelling unit described in subparagraph (A) of paragraph (1) of subdivision (e), a local agency, special district, or water corporation shall not require the applicant to install a new or separate utility connection directly between the accessory dwelling unit and the utility or impose a related connection fee or capacity charge: charge, unless the accessory dwelling unit was constructed with a new single-family home. f434 (5) For an accessory dwelling unit that is not described in subparagraph (A) of paragraph (1) of subdivision (e), a local agency, special district, or water corporation may require a new or separate utility connection directly between the accessory dwelling unit and the utility. Consistent with Section 66013, the connection may be subject to a connection fee or capacity charge that shall be proportionate to the burden of the proposed accessory dwelling unit, based upon either its size- square feet or the number of its plumbing fixtures, drainage fixture unit (DFU) values, as defined in the Uniform Plumbing Code adopted and published by the International Association of Plumbing and Mechanical Officials, upon the water or sewer system. This fee or charge shall not exceed the reasonable cost of providing this service. (g) This section does not limit the authority of local agencies to adopt less restrictive requirements for the creation of an accessory dwelling unit. (h) Weal (1) ageReies A local agency shall submit a copy of the ordinance adopted pursuant to subdivision (a) to the Department of Housing and Community Development within 60 days after adoption. T1 nt R4ay review and eomment on this Submitted Ar-di ance. After adoption of an ordinance, the department may submit written findings to the local agency as to whether the ordinance complies with this section. (2) (A) If the departmentfinds that the local agency's ordinance does not comply with this section, the department shall notify the local agency and shall provide the local agency with a reasonable time, no longer than 30 days, to respond to the findings before taking any other action authorized by this section. (B) The local agency shall consider the findings made by the department pursuant to subparagraph (A) and shall do one of the following: (i) Amend the ordinance to comply with this section. (H)Adopt the ordinance without changes. The local agency shall include findings in its resolution adopting the ordinance that explain the reasons the local agency believes that the ordinance complies with this section despite the findings of the department (3) (A) !f the local agency does not amend its ordinance in response to the department'sfindings or does not adopt a resolution with findings explaining the reason the ordinance complies with this section and addressing the department's findings, the department shall notify the local agency and may notify the Attorney General that the local agency is in violation of state law. (B) Before notifying the Attorney General that the local agency is in violation of state law, the department may consider whether a local agency adopted an ordinance in compliance with thissection between January 1, 2017, and January 1, 2020. (i) The department may review, adopt amend, or repeal guidelines to implement uniform standards or criteria that supplement or clarify the terms, references, and standards set forth in this section. The guidelines adopted pursuant to this subdivision are not subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2. (44 (j) As used in this section, the following terms mean: (I) "Living area" mean,; tho intpr-mar hah- -ilmahwe Area afa tia,. ,a..a,. ., ., gar -age any aceesseFy ffe- (3) rer purposes of this seet4en, "neighbar4aod" has t4e same FaeaRing as .;Pt forth OR sprtiRR 69989.9. (4} (1) "Accessory dwelling unit" means an attached or a detached residential dwelling unit i4igh that provides complete independent living facilities for one or more persons. persons and is located on a lot with a proposed or existing primary residence. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single- family or multifamily dwelling is or will be situated. An accessory dwelling unit also includes the following: (A) An efficiency unit. (B) A manufactured home, as defined in Section 18007 of the Health and Safety Code. (2) Accessory structure" means a structure that is accessory and incidental to a dwelling located on the same lot. {A3 (3) An ef� t-, "Efficiency unit" has the same meaning as defined in Section 17958.1 of the Health and Safety Code. (4} (4) A manufartured�eme,defined gertiAn I RQQ;) .,f «H , Health and Safety Cade. "Living area" means the interior habitable area of a dwelling unit including basements and attics, but does not include a garage or any accessory structure. (5) "Local agency" means a city, county, or city and county, whethergeneral law or chartered. (6) "Neighborhood" has the same meaning as set forth in Section 65589.5. (7) "Nonconforming zoning condition" means a physical improvement on a property that does not conform with current zoning standards. (-54 (8) "Passageway" means a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the accessory dwelling unit. (9) "Proposed dwelling" means a dwelling that is the subject of o permit application and that meets the requirements for permitting. (10) "Public transit" means a location, including, but not limited to, a bus stop or train station, where the public may access buses, trains, subways, and other forms of transportation that charge set fares, run on fixed routes, and are available to the public. W (11) "Tandem parking" means that two or more automobiles are parked on a driveway or in any other location on a lot, lined up behind one another. (k)A local agency shall not issue a certificate of occupancy for an accessory dwelling unit before the local agency issues a certificate of occupancy for the primary dwelling. fi3 (1) Nothing in this section shall be construed to supersede or in any way alter or lessen the effect or application of the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code), except that the local government shall not be required to hold public hearings for coastal development permit applications for accessory dwelling units. (m) A local agency may count an accessory dwelling unit for purposes of identifying adequate sites for housing, as specified in subdivision (a) of Section 65583.1, subject to authorization by the department and compliance with this division. (n) In enforcing building standards pursuant to Article 1 (commencing with Section 17960) of Chapter 5 of Part 1.5 of Division 13 of the Health and Safety Code for an accessory dwelling unit described in paragraph (1) or (2) below, a local agency, upon request of an owner of an accessory dwelling unit for a delay in enforcement, shall delay enforcement of a building standard, subject to compliance with Section 17980.12 of the Health and Safety Code: (1) The accessory dwelling unit was built before January 1, 2020, (2) The accessory dwelling unit was built on or after january 1, 2020, in a local jurisdiction that, at the time the accessory dwelling unit was built, had a noncompliant accessory dwelling unit ordinance, but the ordinance is compliant at the time the request is made. (a) This section shall remain in effect only until January 1, 2025, and as of that date is repealed. GOVERNMENT CODE SECTION 65852.22 AS CHAPTERED BY AB 68 65852.22. (a) Notwithstanding Section 65852.2, a local agency may, by ordinance, provide for the creation of junior accessory dwelling units in single-family residential zones. The ordinance may require a permit to be obtained for the creation of a junior accessory dwelling unit, and shall do all of the following: (1) Limit the number of junior accessory dwelling units to one per residential lot zoned for single- family residences with a single-family residence air^ built, or proposed to be built, on the lot. (2) Require owner -occupancy in the single-family residence in which the junior accessory dwelling unit will be permitted. The owner may reside in either the remaining portion of the structure or the newly created junior accessory dwelling unit. Owner -occupancy shall not be required if the owner is another governmental agency, land trust, or housing organization. (3) Require the recordation of a deed restriction, which shall run with the land, shall be filed with the permitting agency, and shall include both of the following: (A) 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. (B) A restriction on the size and attributes of the junior accessory dwelling unit that conforms with this section. (4) Require a permitted junior accessory dwelling unit to be constructed within the existing walls of the structure, and require the inclusion of an ovictiRg 19od proposed or existing single-family residence. (5) Require a permitted junior accessory dwelling to include a separate entrance from the main entrance to the , with an inter-ior entr-y to the main living area. A perzf+iitted juniar- aceesser-j dwelling , a a seeand inter-ior-door-.- f.,,. ay Se-u d- .,tten„atien proposed or existing single- family residence. (6) Require the permitted junior accessory dwelling unit to include an efficiency kitchen, which shall include all of the following: (A) A sink with a maximum waste line diameter- .,f 1.5 innhnr (44 (A) A cooking facility with appliaiwes that * qui,-e ele etr .,i seFyiee n-eater thin 9 7nw c-vv-rrvcrcc�-azrc-crcccr: ccri ocv v ccc�x cacc� cxxa:c ic.. .., ,atu -al oF p -apane g F. appliances. K4 (B) A food preparation counter and storage cabinets that are of reasonable size in relation to the size of the junior accessory dwelling unit. (b) (1) An ordinance shall not require additional parking as a condition to grant a permit. (2) This subdivision shall not be interpreted to prohibit the requirement of an inspection, including the imposition of a fee for that inspection, to determine whether if the junior accessory dwelling units it eemplianee complies with applicable building standards. (c) An application for a permit pursuant to this section shall, notwithstanding Section 65901 or 65906 or any local ordinance regulating the issuance of variances or special use permits, be considered ministerially, without discretionary review or a hearing. ^ permit shall be issued within 120 days of submission of an application for- a per-mit PUFSUaRt �_A_ t-h J S S e eti a n. The permitting agency shall act on the application to create a junior accessory dwelling unit within 60 days from the date the local agency receives a completed application if there is an existing single-family dwelling on the lot. If the permit application to create a junior accessory dwelling unit is submitted with a permit application to create a new single-family dwelling on the lot, the permitting agency may delay acting on the permit application for the junior accessory dwelling unit until the permitting agency acts on the permit application to create the new single-family dwelling, but the application to create the junior accessory dwelling unit shall still be considered ministerially without discretionary review or a hearing. If the applicant requests a delay, the 60-day time period shall be tolled for the period of the delay. A local agency may charge a fee to reimburse the local agency for costs incurred in connection with the issuance of a permit pursuant to this section. (d) For 4b4-- purposes of any fire or life protection ordinance or regulation, a junior accessory dwelling unit shall not be considered a separate or new dwelling unit. This section shall not be construed to prohibit a city, county, city and county, or other local public entity from adopting an ordinance or regulation relating to fire and life protection requirements within a single-family residence that contains a junior accessory dwelling unit so long as the ordinance or regulation applies uniformly to all single-family residences within the zone regardless of whether the single-family residence includes a junior accessory dwelling unit or not. (e) For t44-- purposes of providing service for water, sewer, or power, including a connection fee, a junior accessory dwelling unit shall not be considered a separate or new dwelling unit. (f) This section shall not be construed to prohibit a local agency from adopting an ordinance or regulation, related to parking or a service or a connection fee for water, sewer, or power, that applies to a single-family residence that contains a junior accessory dwelling unit, so long as that ordinance or regulation applies uniformly to all single-family residences regardless of whether the single-family residence includes a junior accessory dwelling unit. (g) /f a local agency has not adopted a local ordinance pursuant to this section, the local agency shall ministerially approve a permit to construct a junior accessory dwelling unit that satisfies the requirements set forth in subparagraph (A) of paragraph (1) of subdivision (e) of Section 65852.2 and the requirements of this section. W (h) For purposes of this section, the following terms have the following meanings: (1) "Junior accessory dwelling unit" means a unit that is no more than 500 square feet in size and contained entirely within an existing a single-family structure. residence. A junior accessory dwelling unit may include separate sanitation facilities, or may share sanitation facilities with the existing structure. (2) "Local agency" means a city, county, or city and county, whether general law or chartered. HEALTH & SAFETY CODE SECTION 17980.12 AS CHAPTERED IN SB 13 17980.12. (a) (1) An enforcement agency, until January1, 2030, that issues to an owner of an accessory dwelling unit described in subparagraph (A) or (B) below, a notice to correct a violation of any provision of any building standard pursuant to this part shall include in that notice a statement that the owner of the unit has a right to request a delay in enforcement pursuant to this subdivision: (A) The accessory dwelling unit was built before January 1, 2020. (B) The accessory dwelling unit was built on or after january 1, 2020, in a local jurisdiction that, at the time the accessory dwelling unit was built had a noncompliant accessory dwelling unit ordinance, but the ordinance is compliant at the time the request is made. (2) The owner of an accessory dwelling unit that receives a notice to correct violations or abate nuisances as described in paragraph (1) may, in the form and manner prescribed by the enforcement agency, submit an application to the enforcement agency requesting that enforcement of the violation be delayed forfiveyears on the basis that correcting the violation is not necessary to protect health and safety. (3) The enforcement agency shall grant an application described in paragraph (2) if the enforcement determines that correcting the violation is not necessary to protect health and safety. In making this determination, the enforcement agency shall consult with the entity responsible for enforcement of building standards and other regulations of the State Fire Marshal pursuant to Section 13146. (4) The enforcement agency shall not approve any applications pursuant to this section on or after January 1, 2030. However, any delay that was approved by the enforcement agency before January 1, 2030, shall be valid for the full term of the delay that was approved at the time of the initial approval of the application pursuant to paragraph (3). (b) For purposes of this section, "accessory dwelling unit" has the same meaning as defined in Section 65852.2. (c) This section shall remain in effect only until January 1, 2035, and as of that date is repealed. CITY O STAFF REPORT �o To: Date: From: Subject: Honorable Mayor and City Council March 2, 2020 AGENDA NO: MEETING DATE Ana Maria Silva, Executive Assistant — (650) 558-7204 Consideration of Appointment to the Planning Commission RECOMMENDATION 10a March 2, 2020 Staff recommends that the City Council make appointment to fill one vacancy on the Planning Commission or take other action. BACKGROUND The vacancy is due to the vacated seat of Commissioner Brenden Kelly. The vacancy was publicized, and staff sent notification letters to past Commission applicants. The City received one application as of the deadline of January 31, 2020, and the City Council interviewed the applicant, John Schmid, on February 20, 2020. Should the City Council choose to appoint the applicant, the appointment will be until April 7, 2021. 1 sLIRLINGAME STAFF REPORT AGENDA NO: 10b MEETING DATE: March 2, 2020 To: Honorable Mayor and City Council Date: March 2, 2020 From: Ana Maria Silva, Executive Assistant — (650) 558-7204 Subject: Consideration of Two Appointments to the Measure I Citizens' Oversight Committee RECOMMENDATION Staff recommends that the City Council make appointment to fill two impending vacancies on the Measure I Citizens' Oversight Committee or take other action. BACKGROUND The vacancy is due to the expired terms of Committee members Stephanie Lee and Sandeep Shroff. The vacancies were publicized, and staff sent notification letters to past Commission applicants. The City received four applications as of the deadline of February 7, 2020, but one applicant withdrew his application. The City Council interviewed the following three applicants on February 20, 2020: Stephanie Lee, Sandeep Shroff, and Chad Krakow. The appointee terms will be for three years, ending on February 20, 2023. 1 auR� STAFF REPORT AGENDA NO: 10c MEETING DATE: March 2, 2020 To: Honorable Mayor and City Council Date: March 2, 2020 From: Kevin Gardiner, Community Development Director — (650) 558-7253 Subject: 220 Park Road (Former Post Office) —Application Update RECOMMENDATION Staff recommends that the City Council receive an update from the applicant proposing an adaptive re -use development project involving the former United States Post Office at 220 Park Road. BACKGROUND The United States Postal Service (USPS) sold the former Burlingame Main Post Office, located at 220 Park Road, in 2014. The property is now privately held. The City of Burlingame entered into an Exclusive Negotiating Agreement (ENA) with property owner Burlingame Park Square LLC in 2015 for a development proposal that would encompass both the Post Office property and the adjacent City -owned Parking Lot E. The ENA expired in September 2019, and the previous development proposal has become inactive. Since then, the property owner of the former Post Office has engaged developer Sares Regis on a new development proposal for adaptive reuse of the Post Office site. In a study session on January 21, 2020, representatives from Sares Regis presented an update to the City Council on potential uses and development concepts for the former Post Office property. The representatives reported that a commercial/office development concept was being pursued, in coordination with commercial/office developer Dostart Development Company (meeting minutes attached). While a formal planning application has not been submitted, staff has met with the development team for pre -application meetings to ensure that each City department has the opportunity to review the preliminary development concepts and ensure compliance with applicable regulations. Staff has not conducted formal plan checks, but has reviewed the proposal in concept and provided feedback to the development team. nmrIISSI[1N The following items are relevant to the ongoing discussion of potential adaptive re -use of the former Post Office: 1 220 Park Road (Former Post Office) - Application Update March 2, 2020 Zonina and General Plan Desianations: 220 Park Road is located within the Howard Mixed Use (HMU) zoning district of the Downtown Specific Plan. The HMU zone allows a range of uses including retail, restaurants, and services on the ground floor, and housing, offices, and hotels on upper floors. Historic Preservation Covenant: The Historic Resources Inventory prepared for the Downtown Specific Plan identified the building as being potentially eligible for listing on a state or national register under Criteria A (events) and C (design/construction). In anticipation of the disposition of the Post Office, the USPS commissioned an historic resource evaluation to identify potentially historic or character -defining elements of the property. Those elements include the lobby (both interior and exterior), the primary building facade facing Park Road, and the exterior artwork including the bronze relief over the entrance doors. As a condition of the sale, USPS placed a preservation covenant on the property to ensure preservation of those character defining elements of the property. Any adaptive re -use of the building must retain and incorporate these elements. Historic Preservation Incentives: Title 21 of the Burlingame Municipal Code (Historic Resource Preservation) allows incentives to be made available for eligible properties such as the former Post Office that undergo maintenance or alteration consistent with the Secretary of the Interior Standards for Rehabilitation. The Sates Regis development team has indicated an intent to have the project be consistent with the Secretary of the Interior Standards for Rehabilitation, which would allow it to utilize incentives outlined in the chapter. In particular, Municipal Code Section 21.04.120(3)(b) allows "Historic Variances" where owners of designated properties may apply for variances from development standards applicable to the property in instances where the deviation from the standard is warranted in order to preserve the historic character of the property. Per the regulations, the property's status as a designated historic resource may be used as a basis for determining whether the property owner is denied privileges enjoyed by other property owners in the vicinity and within the same zoning district. Requests for historic variances could include deviations from development standards such as applicable building heights and parking ratios, provided the variance supports the adaptive reuse of the historic resource. Based on pre -application meetings held with staff, the development team is proposing a building height of 90 feet, where the maximum building height in the HMU zoning district is 55 feet —an increase of 35 feet. The procedure for requesting approval of an historic variance is the same as that required for other forms of variances, as specified in Municipal Code Section 25.54. That section outlines a series of findings that would need to be made in order to approve a variance: a) There are exceptional or extraordinary circumstances or conditions applicable to the property involved that do not apply generally to property in the same district; b) The granting of the application is necessary for the preservation and enjoyment of a substantial property right of the applicant, and to prevent unreasonable property loss or unnecessary hardship; c) The granting of the application will not be detrimental or injurious to property or improvements in the vicinity and will not be detrimental to the public health, safety, general 220 Park Road (Former Post Office) - Application Update March 2, 2020 welfare or convenience; d) That the use of the property will be compatible with the aesthetics, mass, bulk and character of existing and potential uses of properties in the general vicinity. Town Square/Community Open Space: Concurrent with the proposal for the Post Office property, the City will pursue the design and development of a town square/community open space on the adjacent City -owned Parking Lot E. A "signature open space" was a key element of the Downtown Specific Plan, envisioned to be in the heart of Downtown in the vicinity of the former Post Office. The previous development proposal had combined the City's parking lot and the Post Office property into a single development site to be developed jointly; the direction going forward will be to coordinate the two efforts so they are complementary, but they will not necessarily be combined together into a single development project. On January 6, 2020, the City Council approved a professional services agreement with the urban design firm Urban Field Studio to work with the community to develop conceptual design options for a public plaza on Parking Lot E. This work will include public participation and the development of design concepts for the public plaza, which is intended to become a community amenity. The study will consider the relationship of the public plaza to the adjacent buildings facing (and backing onto) Lot E, as well as coordination with the proposed development of the Post Office site. Proposed Parking and Culvert Easement Exchange: An underground culvert runs through this area of downtown Burlingame, connecting stormwater drainage for Burlingame Creek between the hills and the Bay. This culvert runs across a portion of the Post Office property and continues along Lot E. The project applicant is proposing an exchange of easements, whereby the City would receive a subsurface easement for the portion of the culvert under the Post Office property, and the project would receive a subsurface easement under Lot E to benefit its parking. Under the proposed terms, the City would receive approximately 2600 square feet, and the project would receive approximately 7600 square feet through this exchange. In addition, the project would allow the public access to a portion of its parking (36 spaces) in its underground garage during nights and weekends, for a total of 53 hours per week. Downtown Specific Plan Development Capacity: The City Council adopted the Downtown Specific Plan in 2010. The environmental review, as required by the California Environmental Quality Act (CEQA), evaluated a build -out involving up to 1,232 new residential units, up to 248,702 square feet of new office space, and up to 183,843 square feet of new retail space. The General Plan Update, adopted in January 2019, incorporated these same figures into the Environmental Impact Report (EIR). To date, 443 new residential units (371 net, accounting for existing units being replaced) have been built or approved since the adoption of the Downtown Specific Plan. Retail space has decreased slightly (by a net 4,470 square feet) as some existing commercial retail buildings were replaced with new mixed use buildings that included a smaller amount of retail space than had existed previously. 107,789 square feet of new office space (all new space; no existing office space has been replaced) has been approved, leaving 140,000 square feet remaining under the Downtown Specific Plan. 3 220 Park Road (Former Post Office) - Application Update March 2, 2020 The development team's preliminary plans propose approximately 140,000 square feet of office, and approximately 15,000 square feet of retail space. As proposed, the project would utilize all remaining office capacity in the Downtown Specific Plan. Any future office projects would be required to perform their own environmental review without the benefit of CEQA streamlining, and/or the City would need to amend the Downtown Specific Plan and its environmental review to allow additional office development. Community Input. Any adaptive re -use of the Post Office is subject to Planning Commission review, including public hearings. Review will also include study of potential environmental impacts, as required by CEQA. The design of the town square will include a separate series of community meetings intended to determine the design and programming of the open space. The Planning Division maintains an informational page on the former Post Office property at www.burlingame.org/220park. The page includes Frequently Asked Questions (FAQ), and will include project updates as they become available. City Council Direction. In advance of submitting a formal application, the applicant and staff are seeking direction from the City Council on the following items: 1. Would the City Council be amenable to the parking and culvert exchange concept proposed by the applicant, and if so would it be contingent on particular terms? Should the Council be amenable, staff can coordinate with the applicant on terms. Whether through an easement exchange or another mechanism, does the Council wish to authorize the project to submit plans incorporating a portion of Lot E? If so, staff will return with a resolution memorializing the Council's direction and any action on this issue. 2. Would the City Council be amenable to a building height of 90 feet, to be evaluated through the historic variance process that is offered to preserve the character of a historic resource? The Planning Commission is charged with making the final determination of whether a variance is supportable, but Council's initial feedback on the project scope would be useful as the applicant refines its plans prior to formal submission to the Planning Department. 3. Is the City Council amenable to the project utilizing all remaining office space capacity evaluated under the Downtown Specific Plan? 4. Does the City Council have suggestions for community engagement to solicit feedback on the proposed project and its design? FISCAL IMPACT None. Exhibit: • January 21, 2020 City Council Study Session Meeting Minutes 0 BURLINGAME CITY COUNCIL Approved Minutes Regular Meeting on January 21, 2020 STUDY SESSION a. 220 PARK ROAD (FORMER POST OFFICE) — APPLICATION UPDATE CDD Gardiner stated that the property owner of the former post office, 220 Park Road, has engaged developer Sares Regis on a new development proposal for adaptive reuse of the post office site. He explained that the site is in the Howard Mixed Use zoning district, which allows for a range of uses including retail, restaurants, and services on the ground floor, and housing, offices, and hotels on upper floors. CDD Gardiner explained that the Historic Resources Inventory that was prepared for the Downtown Specific Plan identified the building as being potentially eligible for listing on a state or national register under Criteria A (events) and C (design/construction). He stated that the key elements of the building for historic status are the lobby, primary building fagade facing Park Road, and the exterior artwork including the bronze relief over the entrance doors. He added that as a condition of the United States Postal Service's sale of the building, USPS required that a preservation covenant be placed on the property so that future developments would retain the above -listed features. CDD Gardiner stated that concurrent with the proposal for the Post Office property, the City will pursuing the design and development of a town square/community open space on the adjacent city -owned Parking Lot E. He explained that this signature open space is a concept that first emerged in the Downtown Specific Plan. He stated that the City hired Urban Field Studio to work on design concepts for the town square. CDD Gardiner stated that the proposed development would be subject to Planning Commission review and CEQA. Therefore, he noted that the community would have several opportunities to offer input and comment. Sares Regis Chief Operating Officer David Hopkins discussed his company's background. He explained that Sares Regis is based out of San Mateo, and most of their work is in San Mateo County and Santa Clara County. Mr. Hopkins discussed their approach to the post office site. He explained that they first reviewed the General Plan and specific plan to understand what the City's vision is for the downtown district. He noted the recently redesigned Burlingame Avenue and voiced support for its aesthetic. Burlingame City Council January 21, 2020 Approved Minutes Mr. Hopkins stated that after reviewing the specific plan, they talked with the members of the community about what their priorities were for the building: • Start and deliver • Active town square • Preservation of post office • Quality design and architecture • Convenient public parking • Sustainability • Long term ownership and care He explained that as a result of community input, Sares Regis was proposing to build commercial space above the post office. Mr. Hopkins explained that Sares Regis had formed a team for this project including KSH Architects, Bionic (landscaping firm), and Dostart Development Company to assist with the project. KSH Architect Principal Ted Korth began by displaying pictures of previous projects that his firm had undertaken. He explained that his firm had undertaken ADA upgrades and renovations in historic buildings without altering their historic features. Mr. Korth stated that the proposal for the post office site would include green spaces, retail, restaurants, parking, and upper floors of commercial space. He discussed preserving the fagade of the post office while seismically retrofitting the building. Mr. Hopkins stated that his firm would be speaking to the City about a potential below -grade easement. He explained that this would assist with creating the parking garage and preserving the fagade. Bionic Design Director Marcel Wilson discussed his firm's work on the Fort Mason Center in San Francisco, a national historic site within a national historic district. Mr. Wilson stated that he believed there was a great deal of potential for the post office site. He noted that they are ready and willing to work with the City's consultant on what should be in the town square. He stated that the ingredients of a great town square are food and beverage, successful retail, activities and programming, and green space. He added that it is important to consider how the town square would work during the day versus night and what events could be held in the area. Mr. Hopkins discussed the benefits of the development: • Active town square • Restoration of the post office • Quality design and architecture • Convenient public parking • Affordable housing contribution • Mobility (bike, ped, transit) • Sustainable building 2 Burlingame City Council January 21, 2020 Approved Minutes Mr. Hopkins reviewed the next steps for the project: • Submit application in February • Coordinate with town square design • Community outreach • Environmental review • Historic Preservation Committee • Planning Commission Mayor Beach acknowledged the work of Councilmember Colson and Councilmember Brownrigg, who serve on the subcommittee concerning the post office and town square. Councilmember Colson asked about Lot E and whether instead of only utilizing part of it for the town square, the City should consider utilizing all of Lot E. She added that she was concerned about having the town square against a busy parking lot. City Manager Goldman stated that Urban Field Design would be considering this option. Councilmember Ortiz voiced support for turning Lot E into green space if removing those parking spaces didn't negatively impact the downtown district. Vice Mayor O'Brien Keighran agreed that the City should review this option. She noted that Lot E abuts the back of stores and wondered how this would affect utilizing all of Lot E as a town square. Councilmember Colson stated that the subcommittee discussed utilizing living walls and smaller retail/kiosks along the back of the buildings. Regarding parking concerns, she noted that a parking garage was being built on Lot N, and that the post office proposal included parking that would be available to the public in the evenings and on weekends. Vice Mayor O'Brien Keighran asked if there were traits from the Burlingame Avenue redesign that would be interwoven into the project's design. Mr. Hopkins replied in the affirmative and stated that this would be specifically seen in the town square. Vice Mayor O'Brien Keighran asked how many stories the building would be. Mr. Hopkins stated that they have not yet determined the height of the project but are aware of the requirements in the specific plan. Councilmember Brownrigg agreed with Councilmember Colson that the City should discuss utilizing all of Lot E for the town square. He asked if the development would read as a single building or would it be pair. Mr. Hopkins replied that it is being developed as a pair but would read as a single building. Councilmember Brownrigg asked about the proposed architecture style for the building. Dostart Development Company President Steve Dostart stated that it would be something compatible with the post office. He explained that his team looked at the Marina Middle School in San Francisco as it had similar aspects. Councilmember Brownrigg discussed the importance of ensuring that the height of the building doesn't Burlingame City Council January 21, 2020 Approved Minutes completely shade the town square. Mr. Wilson stated that having air and light hit as much of the plaza as possible is a basic tenet. He added that the goal was to have areas of sun but also shade for the community in the town square. Councilmember Ortiz stated that prior designs for the site included a huge wall on Lorton Avenue, and he appreciated that the proposal included setbacks on Lorton to soften that area up. Mayor Beach voiced her excitement about creating restaurant and entertainment uses at the post office site. She agreed with her colleagues that the Council should consider utilizing all of Lot E for the town square. Mayor Beach asked Mr. Hopkins to explain why the proposal was for commercial versus housing. Mr. Hopkins discussed the types of housing that would support the cost of the project. He noted that their proposal would require them to pay commercial linkage fees, which would be earmarked for affordable housing. Mayor Beach opened the study session for public comment. Former Mayor Cathy Baylock voiced her support for the development proposal. Burlingame resident Jennifer Pfaff voiced her support for the project. Mayor Beach closed public comment. Vice Mayor O'Brien Keighran stated that the advantage of having commercial uses at the site is that allows the City to have a lot more flexibility with the town square. She discussed the ability to utilize the space for events that could bring noise and food odor issues, which would negatively impact households at night but not necessarily commercial spaces. Councilmember Colson stated that this is an exciting opportunity. She agreed with Vice Mayor O'Brien Keighran about going forward with commercial instead of housing. She added that the price tag of the condominiums would put the building out of the price range of most. Councilmember Brownrigg asked if the next opportunity that the community would have to review and provide input on the project would be at the Planning Commission. CDD Gardiner replied that because of the importance of the project to the community, he will review options, but at the very least it would be presented as a study session at the Planning Commission. Mayor Beach thanked the developers for coming to the study session. 4 Burlingame City Council January 21, 2020 Approved Minutes BURLINGAME Memorandum To: City Council Date: March 2nd, 2020 From: Mayor Emily Beach Subject: Committee Report Thursday, 2/13 League of California Cities Webinar on Housing Legislation for State Board of Directors Ongoing past three weeks: Broadway Grade Separation Federal Grant outreach and requesting/securing letters of support from: Members of U.S. Congress, State Senate, State Assembly, County, San Mateo County Transit District, Caltrain, Transportation Authority, Silicon Valley Leadership Group, Labor, etc. Friday, 2/14 State of the Valley Annual Meeting, San Jose Meeting regarding SB 378 with City of San Jose staff Tuesday, 2/18 City Council Meeting Wednesday, 2/19 Constituent Meeting — Women's Workspace Rotary Lunch, Italian Boosters Club Burlingame High School Thursday, 2/20 Commute.org Board of Directors Meeting • Presentation from Caltrans about US 101 @ Alemany deck replacement scheduled from 7/10/20- 7/20/20. Many residents from San Mateo County commute to/from San Francisco, so drivers should avoid commuting this route to avoid delays. BART will be running longer trains to absorb additional passengers. • Commute.org leading 12 applications to SMCTA for $7.2 million commuter shuttles, including Burlingame Bayside, North Burlingame and additional shuttle to Burlingame Point (Facebook proposed to privately fund 80% of this public shuttle.) Commuters Incentive Programs for residents, workers, college students are eligible to receive the following by signing up at Commute.org • $100 for carpooling • $500 for vanpooling • Guaranteed ride home ($60 per trip up to 4x year) if you take transit to work and need to call taxi/rideshare for emergency ride home • STAR store — earn swag/gifts for NOT driving alone to work Beach Committee Report March 2nd, 2020 • Businesses and City staff encouraged to attend Commute.org annual Employer Symposium 3/11 to learn about commuter program benefits. • Commute.org staff assembling (and keeping up to date!) consolidated list of micro -mobility (bike share, scooter share, mopeds) —program highlights, agreements, and local policies throughout the Bay Area as shared database. Will be important tool for Burlingame once we are ready to re-enter this marketplace. • 5/14/20: Bike to Work Day, mark your calendars. League of Cities State-wide Board of Directors Meeting • Board approved all positions on legislation submitted by Transportation, Environmental, and Housing policy committees • Board approved Housing Committee's recommendation, as key elements behind the League's upcoming housing production proposal as alternative to SB50- see below. Elements of the League's Housing Production Proposal: 1) Long-term actions: • SB 50 (or similar legislation) not needed because zoning and land use changes will happen (organically) during the upcoming 6th cycle of RHNA (due to huge increases in housing numbers all Cities will be required to accommodate -- in some cases 3x or 4x current numbers. We will have to make land use decisions that allow more density.) Cities will prioritize housing site identification near transit, downtown, commercial corridors, etc. Implemented by 2023. 2) Near -term actions: • New funding to support needed affordable housing and infrastructure. o SB 795 (Beall) Affordable Housing and Community Development Investment Program. o ACA 1 (Aguiar-Curry) Affordable Housing and Public Infrastructure. Voter approval. • Require cities to take some (qty TBD) near -term actions (already adopted actions would qualify) this helps cities who have already done the right thing o Cap or eliminate certain development fees o Adopt/update an accessory dwelling unit ordinance o Streamline housing approval process o Adopt -by right approvals of housing developments o Develop objective design review standards o Adopt of expand an inclusionary housing ordinance o Establish a local housing trust o Restrict demolition of existing housing stock o Allow up to four-plexes in single-family zones o Increase allowable heights and densities o Adopt transit -oriented development plans o Reduce parking requirements o Adopt tenant protections • Board also included a request that the State work on reducing barriers/regulations that increase cost of housing production. This was of particular concern for rural communities that have already done TOD local land use, but housing projects don't pencil for developers due to land values, cost of construction, and onerous state regulatory requirements. League staff will develop language around this, TBA. 2 Beach Committee Report March 2nd, 2020 Also, Governor Newsom met with us on Thursday for about one hour and answered many questions. His remarks focused on housing and homelessness -- same themes from his State of the State earlier last week. Good dialogue, and demonstrates his recognition that he needs Cities as an ally to get significant housing legislation done this year. The best news is that the Governor's office requested a meeting with League staff early next week to listen and learn more about our housing proposal. Friday, 2/21 League of Cities State-wide Board of Directors Meeting (Continued) Sunday, 2/23 Historical Society — Longtime & Local Businesses Celebrating 25+ years Monday, 2/24 Meeting with Sierra Club C/CAG's Congestion Management and Environmental Quality Policy Committee Received Safe Routes to Schools County presentation County survey (3,000 parents) 25% Walk to School County wide 10% bike 47% drive alone Of kids who live within only %2 mile of school 60% walk or bike 30% drive along Of kids who live within %2 mile of school and parents drive alone, top reasons: 1. Speeding 2. Unsafe intersections 3. Stranger danger 4. Too much traffic 5. No crossing guards Conclusions: schools can't resolve these concerns alone — need help of City Public Works and City Councils. Approved C/CAG recommendation to contract bulk discount subscription for StreetLight Data Services (10+ cities interested) -- helps cities track multi -modal vehicular movement patterns throughout cities and regions. Incredible technology. Approved "fiscally constrained" list of San Mateo projects to MTC for the Regional Transportation Plan (Plan Bay Area 2050.) Ensured grade separations had separate category (new) and advocated for remaining capacity (left over) bulk up Grade Separation bucket. Tuesday -Thursday, 2/25-2/27 In Washington D.C. to advocate for Burlingame Broadway Grade Separation INFRA Federal Grant dollars. Positive meetings and effort. Detailed update next report. 3 9BURLINGAME Memorandum To: City Council Date: March 2nd, 2020 From: Councilmember Donna Colson Subject: Committee Report City Council Meeting Notes February 18, 2020 SMC HFA Finance Department • Updated DOH dashboard for housing https:Hqpp.powerbigov.us/view?r--eyJrljoiYzgwY2EzZDMtYTUI OSOOMzl2LWIxMjgtM jU 1 ZmFhZj MONDdiIiwidCl6lj BkZmFmNjM 1 LWEwNGOtNDhjYyl hN2UzLTZkYTFhZ jA40DNmOSJ9 • Reviewed housing pipeline for affordable - did request a master spreadsheet with all new Multi -family and BMR housing going on in SMC in addition to the Measure K funds working on the affordable units • Collaborative Opportunities - Local Housing Trust Fund program of $56.7 million NOFA for Spring 2020 late July due date. • Deep Dive into bond financing model and hope that we can invite in Catalyst and CALCHA for more information. February 18, 2020 Housing and Community Development Committee • Update on homelessness o County funds Min 5% of units for homeless and min 10% for ELI • Housing for county Clients - Total 550 units either built or under construction, for example o Homeless Vets 184 o MentalI11103 • Pipeline 31 projects total 2,361 completed, construction or permitted • Projects are building more than 5% minimum required and have 7 projects with 66 units for county homeless clients • FY 18-20 Total of $1.3 million CDBG, ESG (Emergency Service Grants - for rapid housing) and State ESG • Voucher - 4,903 vouchers and 95% are used in SMC • SMC Core Service Agencies - eight agencies that work in collaboration to prevent homelessness. 1 Colson Committee Report March 2"d, 2020 Shelter Count plus unsheltered - 1,512 (2019) went down in 2017, but now up due to people living in RV households 0 80 RV households surveyed o Over half were employed - Employment income $2,270 was average pay o Over 80% reported that they stayed in RV every night and 64% had been in an RV more than twelve months, 8% have home in another area, 11 % stay with home of friend or family o Results in how we work our services o How can we make sure that they access services o 57% said RV was a temporary housing, 12% permanent, 18% permanent and looking for a park o 2017-18 nearly 3000 entered homeless system and 2,215 moved into permanent housing and 47% found housing without a subsidy o 2019 - 1, 512 in one point in time county More money coming from HUD for affordable housing Review of Projects and Funding (You can find information on the DOH website) $6,372,356 total funding in this 20/21 NOFA from CDBG, HOME, ESG Review of all applications and funding recommendations prior to the public meeting next week. February 19, 2020 C/GAG - RCMP Meeting Dario Presezzi - CEO and Valentino http://bioforcetech.com Bioforcetech - Sewage sludge o Pyrolysis process starts for for 2-3 hours on natural gas - Then the Biodryer that uses the organic waste for fuel then can operate for 2-3 months without any other fuel 0 100 tons of bio solids to 10 tens of biochar o PFAS - molecules that are fire retardant and this process can remove the pathogens o One time a year there is 250 pounds of charcoal to landfill from 5,000 tons of bio solids - 100,000 people per year. Replaces digesters in cities with 25 million gallons of waste day. SVCW is the lead agency working on this. Palo Alto and also Redwood City are working on this as well. o About half the cost to construct and operations are less be you are automating the process. Can operate one month without people. o Can use rather than burning petroleum to create charcoal for plastic dye and also things like charcoal for the printer, cement and also can be used mainly for fertilizer for parks etc. Fluence based in White Plains, New York (traded on Australian Stock Exchange) Value from water o China, Argentina, Dubai, Argentina - etc. o The technology - just add a component that can be added to any process... reduces energy by over 90% for the introduction of water and energy consumption 2 Colson Committee Report March rd P 2020 (bubblers) - translates to 50% reduction in operating costs of the waste water. Unique bacteria that treats waste water in an unconventional way and these two reduce the water treatment plant in more economical way. Recycled Water Pipeline - Wastewater treatment Menlo Park and Portola Valley to Sharon Heights Golf Course provide 152 AFY - for both Sharon Heights and SLAC Done by West Bay Sanitary District - serves EPA, PV, MP, and a few other areas. o Rate Neutral - the Country Club paid the capital and it was $22.5 million and then pay for ongoing OM. o State funding at 1 % loan for the work and the golf course pays back the loan o Maintain an $8 million CF Reserve, $22.5 mm project price, 1% loan and $5.25 million grant February 20, 2020 Housing and Climate Change Plan Bay Area 2050 - Update SB375 = Rules will be difficult to hit and we will have a gap when we finish the plan, so how do we target? Or do we have a non -confirming plan. Concern to lose $100 million a year in state funding. Blueprint Plus - $20 billion investment into upgrading buildings focus on energy, wildfire, seismic and water. This has 97% support from strategy but how do you pay for it? Where do you get $20 billion. Residential Housing Units - Adaption strategies - protecting in areas where we have vulnerabilities. Basic is $1 billion and Blueprint Plus is $20 billion Natural Lands - Marshlands just at or above sea level are at risk even in 1 foot of SLR. Blueprint basics - $6 billion and then plus is $10 billion Review about more affordable housing - and goal for 10% to be affordable and how do we combine this with green building standards. Groundwater conversation as well - reduce pollution, manage flood risk, and reduce heat island, clean water supply. Three scales - o Manage parcels, o Green Streets that are primarily private funding to work on green infrastructure and sustainable street structure. o Regional - large retentions and water Regional permit that we manage this pollution for the water board and water quality improvement - been in place since 2005 so we have 15 years of data. February 24, 2020 Meeting with staff regarding herbicides and use in our parks and city landscaping 3 Colson Committee Report March 2"d12020 • Meeting with potential donor for the Anson Burlingame Art Walk - helping represent the Park and Recreation Foundation February 24, 2020 SMC Flood and Sea Level Rise Resiliency District Meeting Approved contract with the new CEO Len Materman who has agreed to the position Conversation about other benefits and transitioning employees from the County to the FSLRRD • Will need to get an easement from Cargill to complete the Bay Front canal project which has at least five vulnerable communities that are flooding as a result. Need two permits that are required for the project. Stanford has $26 billion endowment fund - question is are they interested in contributing. Stanford did foundational hydrology work and does have benefit from this. Important to know who are beneficiaries and what do they have to gain or loss in this project. This is the most advanced MOU and is ready for funding so this shows how this works. Study to show how Mitigated Negative Declaration works. • Did receive a Mayor's Award from the San Mateo Chamber of Commerce for the most innovative project in local government. • Also have more information on the Resiliency Bond (now three versions) -Assemblymen Mullin is leading the Assembly version of the bill. • Invoiced the local agencies and now cash is flowing in and we have revenue that is non - county funding. • San Fransciquito Creek - between $2-5 million sub -zone balance and they are evaluating increasing member dues. • SB - Just enough revenue to maintain the facility. February 25, 2020 Department of Housing - Housing and Community Development Committee (HCDC) Meeting • Update on The Brown Act and compliance • HUD released the financial numbers for 2020 so we now have firm data on that for allocations Review of CDBG, HOME, ESG Action Plan for 2020/2021 Total of $7.7 million between these three programs Housing Development o Bay Oaks (MidPen) - Total $1.25 million. Will re -syndicate this property to allow a completion of almost $6 million in renovation. Exterior repairs as well as sewer line repairs. Asked about moving to full electric - not really possibly with the given infrastructure o Willow and Greenridge Rehab (MidPen), Resyndiation - Older project with asbestos and structural upgrades. CDBG funds requested $1 million. Will be adding solar to both projects. o Firehouse Live (Habitat) - 24 unit building all for sale, targeting 80% below AMI for the development. $300-$400k in gap financing to subsidize these units. Provide 4 Colson Committee Report March 2"d02020 zero interest, zero down for all of the buyers. Cannot tap the tax credit funding sources on for sale projects. All units will be adaptable and several will be ADA compliant. Will be able to comply with all -electric reach code for county. o 612 Jefferson Project (Habitat) - Again, for sale units, with future owners putting in over 500 hours of time to build and construct the units. o 965 Weeks (EPA CAN DO) - This is project proposed to add more information. Include 136 homes for low-income with 30% at extremely low income and all affordable. Goal is to start construction in 2021. Minor Repair Programs o CIID focused on disabilities, accessibility and modifications o El Concilio of SMC - Energy efficiency services, work with energy efficiency and improve health with these updates. Work with Healthy Home Connect to increase efficiency for minor home repairs. o Habitat Neighborhood Revitalization Program - Expand critical home repairs for EPA and Bellhaven neighborhood. The base funding is leveraged to attract other private, foundation, and government funding. About $25,000 per individual home to keep these homes repaired. o Rebuilding Together Peninsula - National Rebuilding Day and Safe at Home Minor Repair - Data 80% of all seniors would like to age in place. Also have many multi -generational homes. Will serve about 20 homes and facilities. Homes are primarily located in Bellhaven and EPA. Coast -side - have two facilities and one home. New outreach coordinator is helping identify new homes. o Senior Coastsiders - Work with seniors and their houses and will work to ADA upgrade the homes so that they can age in place. Funding helps pay for staff to coordinate these issues and block and tackle each everyday with needs. Public Facilities o Retraining the Village - Serve personal care for men coming out of drug recovery, job training, chronic mental health, etc. Would like to add more space to the project. This is a ten bed facility. Micro -Enterprises o Renaissance Entrepreneurship Center - Average client retrains and makes about $90,000 per year. Would like to do a share with churches that do not use their space during the week and could be used to train people. Public Services o Legal Aid SMC - Focus on domestic violence legal aid access and assistance. o CALLPrimrose - Food pantry for Brisbane through San Carlos to meet basic grocery need and allows them to pay rent and hold on to housing. Over 40% of clients come over 2x month, and provide 60,000 bags of groceries in 38,000 visits and serve 980 to 1,000 households. Can do 3 bags I week for a single person or up to 8 for a family. Colson Committee Report March 2"d12020 o Coastside Adult Day Health Center - Caregiver and support services for adult day care. Social environment and do adult day health center to enhance their daily lives. Also provide transportation. o Community Legal Services for EPA - Legal services funding for tenants. Keeping people housed and working on legal actions. o El Concilio of SMC - Emergency Services partnership o Free at Last - Recovery and rehab services and sober supportive transitional housing o Friends for Youth - o HIP Housing - Home sharing 650 people, looking for 37 seekers, but do work with many more people on other issues and working with the county to help their employees and schools 17% work for schools, 16% municipal and 10% are with hospitals. o Legal Aid of SMC - Homeless prevention services working basically with tenants. o Peninsula Volunteers - Meals on Wheels who serve over 600 meals a day. YTD it is 766 clients for the entire county except the coast side that has their own. o Retraining the Village - Help Our Men Excel (HOME) - this is 60% funded by services for behavioral health and the request is to enable them to match from Chan Zuckerberg and use it to hire new professional staff to make sure the bookkeeping is transparent. o United Way Bay Area - 211 helpline you can text 898 211 and be able to call and speak to live specialist. Public Service o Project Sentinel - Fair Housing Agency Public Services Core Agencies - Samaritan House - both safety net services - 2 case managers one in San Mateo and one in EPA Public Service Shelters o CORA - Safe House emergency services, both for women and men o Home and Hope - Rotational Shelter - partnership with congregations in Burlingame and sleep in physical services and some sign up for a week or more - sleep in 1Ox10 tents and have a cot or air mattress congregations do make food. o LifeMoves - offer five shelters and four family facilities and one for single adults, serve 716 SMC residents 96% utilization rate for that bed or apartment who needs services. Rapid rehousing program o Starvista - Daybreak program 16-21 years old for a 10 bed home and provided 239 beds four youth. Two rooms with four to a room and two to one room. Residents are provided room by gender ID and do move things around. February 25, 2020 6 Colson Committee Report March 2nd 2020 Meeting with USPO office developer to discuss preliminary design concepts and understanding of the impacts of reach codes on both the office, retail and restaurant facilities. February 26, 2020 Follow up meeting with Community Center Capital Campaign and the team we have assembled to assist in the various development efforts. 7