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2015-09-21039 MINUTES OF A SPECIAL MEETING OF THE CYPRESS CITY COUNCIL HELD September 21, 2015 A special meeting of the Cypress City Council was called to order at 6:00 p.m. by Mayor Johnson in the Executive Board Room, 5275 Orange Avenue, Cypress, California. Members present: Mayor Rob Johnson Mayor Pro Tem Mariellen Yarc Council Member Stacy Berry Council Member Paulo Morales Council Member Jon Peat Staff present: City Manager Peter Grant City Attorney Anthony Taylor Director of Community Development Doug Dancs City Planner Doug Hawkins Associate Planner Kori Sanders Assistant Planner Judy Aquino City Clerk Denise Basham ORAL COMMUNICATIONS: The following spoke regarding development in the City: Gene Andre, Cypress, George Pardon, Cypress, Bill Hutchens, Cypress John Roper, Cypress Terry McCarthy, Cypress Carol Wilkerson, Cypress Sue Douglas, Cypress Sherry Yurenko, Cypress Elaine Black, Cypress Deanna Merriman, Cypress Linda Gavlick, Cypress Steve Gavlick, Cypress Lisa Berger, Cypress Bruce Berger, Cypress Stacia DeFazio, Cypress Katie Wiedel, Cypress Julie Oakley, Cypress Clyde Thomlinson Schlector, Cypress Dennis Brandt, Cypress Rachel Miranda, Cypress Irene Thomlinson, Cypress WORKSHOP SESSION: The City Manager stated that the Community Development Director and City Planner would provide an informal presentation regarding planning, zoning and land use, and that no formal actions would be taken by the City Council. He stated that a public hearing would be held at future City Council meeting to discuss the proposed Orange Avenue development. Mayor Pro Tem Yarc spoke in support of holding a town hall meeting and asked about the City Council Members' ability to meet informally with residents. CITY COUNCIL MINUTES SEPTEMBER 21, 2015 040 The City Manager stated that the public hearing to be held at a future City Council meeting would provide enhanced abilities for the City Council Members to interact with members of the public. The City Attorney provided a brief explanation of the Brown Act and clarified that legal constraints include focusing on the agenda and limiting public interaction and discussions at formal City Council meetings. The City Manager indicated that three or more City Council Members meeting would violate the Brown Act, and that individual City Council Members could meet informally with the public. The Director of Community Development stated that a detailed presentation would be made regarding the City of Cypress General Plan Land Use Policy, zoning, 10 -Year Residential Development History, and Multi - Family Residential and Commercial Zones. The City Planner reviewed the General Plan Land Use Policy and Zoning maps. He stated that each identifies various types of land uses within the City and that every city and county in the state is required to have an approved General Plan that includes elements such as circulation and recreation. The City Planner identified the color- coding on the General Plan Land Use Policy map and stated that the map also depicts community service, facility -type uses, Forest Lawn Cemetery, and the Los Alamitos Race Track. He indicated that the Specific Plan Area includes different development standards and uses. The City Planner reviewed the zoning map color- coding and indicated that each zone classification contains its own development standards that includes building height, building setbacks, parking, landscaping, and the number of dwelling units that could be developed on each acre of property. He stated that the zoning map reflects Specific Plans which is consistent with the approved General Plan. He stated that developments are approved through a public hearing by the City Council, with a required environmental analysis. The City Planner stated that the Lincoln Avenue Specific Plan was approved in 1998 which identified various land uses along Lincoln Avenue. He indicated that there are currently approved residential uses along Lincoln Avenue, and that properties permitted to have 30 units per acre are included in the Lincoln Avenue Specific Plan. The Director of Community Development spoke of residential single - family zones and 30 acre per unit developments, and indicated that some units on Lincoln Avenue are designated for affordable housing, in accordance with State law. He provided an overview of the residential developments that have occurred over the past 10 years, and stated that according to the Department of Finance, there are approximately 16,627 dwelling units within the City. He spoke of how the economy affected land developments and that the majority of specific planned communities are residential. The Director of Community Development stated that prior to the Lincoln Avenue Specific Plan, the majority of the property could have been developed up to 20 units to the acre with an approved Conditional Use Permit (CUP). He indicated that the zoning on Lincoln Avenue had not changed, only the housing element requirements. He spoke of how Lincoln Avenue was bleak prior to approval of the Lincoln Avenue Specific Plan and how mixed - retail uses have improved the area. The Director of Community Development provided an overview of the Multi - Family Residential and Commercial Zones and informed of development restrictions. He stated that the Zoning Code change in 2004 allowed permits for multi -use or multi- family development in the office /professional and other commercial zones. He spoke of areas that may not be conducive to residential development because of development setback restrictions. The City Manager asked the Director of Community Development to speak on the Conditional Use Permit process, as well as research done with regard to the 2004 Zoning Code update. 2 Rom* CITY COUNCIL MINUTES SEPTEMBER 21, 2015 The Director of Community Development indicated that staff was not able to find written discussion regarding the 2004 zoning change. Council Member Morales asked for clarification on if it was the public that had no discussion. The Director of Community Development responded that no recorded documentation or staff report was found. Council Member Berry asked if the City Council minutes had been researched. The Director of Community Development replied that the minutes do not reflect any discussion on that matter. The City Manager clarified that with regard to the 2004 Zoning Code update, staff has been unable to find staff rationale for the change or any City Council or public discussion. The Director of Community Development indicated that a Conditional Use Permit receives a more high -level review by staff and includes a City Council public hearing that allows for public notice and public testimony, and review of the developer's application to ensure that the project is within the development standards. He stated that staff does not have the authority to change the City Code. He indicated that review of a Tract Map may be part of the application review process to include subdividing and /or combining of parcels. Mayor Johnson asked about environmental and traffic studies, and if outside companies provide that service. The Director of Community Development responded that some projects are not required to conduct environmental studies based on their categorical exemption within the State law. The City Planner clarified that there is a specific categorical exemption for certain types of infill projects that are less than five acres in area and are consistent with the zoning and general plan designation. He stated that the any project that would require a specific plan or additional entitlement would be required to complete a full environmental analysis either a Negative Declaration or Environmental Impact Report. Mayor Johnson asked about a traffic report. The City Planner indicated that a traffic report would be included if there is either a Negative Declaration or an Environmental Impact Report if the project is more than five acres in area. He clarified that staff could ask for a traffic report if the project is less than five acres in area, however it is not required. The Director of Community Development indicated that a traffic report is not required as part of the California Environmental Quality Act (CEQA), however staff could still ask for a traffic report based on possible traffic impacts of the surrounding areas. Mayor Pro Tem Yarc asked if the City Council could deny the project even if it is in compliance with the City Code. The Director of Community Development indicated that the City Council could deny the project based on findings with regard to public health, safety, and welfare such as material injurious to the property. The City Attorney spoke of the City Council legal constraints related to Conditional Use Permits, and stated that the City Council has less direction for denial and would have to make specific findings that there would be injuries to public health, safety, and welfare or inconsistencies with the existing City plans and laws or a particular defect with that specific project. 3 041 CITY COUNCIL MINUTES SEPTEMBER 21, 2015 Council Member Morales clarified that an Environmental Impact Report (EIR) is not required if the project is less than five acres in area, and asked if the City Council could require a traffic report. The City Attorney responded that there would be some discretion to require a specific traffic analysis, and indicated that CEQA sets the industry standards. He stated that the City could be faced with additional legal issues should the industry standards not be followed. Council Member Morales asked if the developer has the option to take the City to court should the industry standards not be met. The City Attorney stated that every city and every City Council is faced with different project perimeters based on State mandates, and that type of lawsuit would be a financial obligation to tax payers. Mayor Pro Tem Yarc asked about the process for a zone change and if the City Council would have more discretion over the Conditional Use Permit. The City Attorney responded in the affirmative, and clarified that the City Council must follow certain industry standards of environmental review. Mayor Pro Tem Yarc asked if the City Council could deny a zoning change. The City Manager responded in the affirmative, and stated that the City Council has latitude in making the findings for denial and that staff presented maps that identified site - specific zoning development standards that typically accompany a zone change. Mayor Johnson asked if additional units have been added to the proposed development. The City Planner replied that State law allows developers to request a density bonus over what is allowed in the Specific Plan or zoning for the property. He stated that the City must grant the density bonus and exceptions based on the level of affordability. The City Manager indicated that the State has determined that it is in the State's best interest for there to continue to be the development of housing and affordable housing in communities. He stated that the City has obligations under State law and the City's Housing Element to comply with the State law, and should the City be out of compliance, it would be subject to sanctions and deemed illegible for various grants and subsidies. Mayor Pro Tem Yarc asked if the Lincoln Avenue Specific Plan is the only area in the City that allows for 30 acre per unit development. The City Planner responded in the affirmative. Mayor Pro Tem Yarc asked about the next step should the City Council desire to change the 2004 Zoning change. The City Manager stated that a public hearing and environmental review at an agendized City Council meeting would be required in order to change the property zoning. Mayor Pro Tem Yarc asked how the City Council could direct staff to change the property zoning. The City Manager responded that this matter would be discussed at a future City Council meeting, and that staff would prepare options for the City Council consideration. Council Member Peat asked what zoning changes would be considered. 4 042 CITY COUNCIL MINUTES SEPTEMBER 21, 2015 The City Manager stated that consideration would be given to all of the commercial and office professional sites in the City. Council Member Peat asked about the zoning changes process and if it would change for the proposed project. The City Manager replied that not grandfathering current projects into a zoning change could create litigation for the City. He indicated that staff would prepare specific options for the City Council consideration. Council Member Berry asked how the 2004 Zoning Code change was noticed by staff. The Director of Community Development responded the change was in the approved Zoning Code and that the land use tables did change. Council Member Berry asked about other Zoning Code changes. The Director of Community Development stated that the 2004 City Council and staff held multiple workshops and made changes to the City Code, and nothing with regard to land use changes. Council Member Berry asked if Zoning Code changes were done by other cities. The City Manager stated that this allowable use is less common and that in 2004 the housing market was at its height, and there was possibly more opportunities for residential development. Council Member Berry asked about the Housing Element and if six parcels were set aside in order to accommodate the new Housing Element. The City Planner responded that there are three parcels approved for development which include a 57 unit condominium development and a 66 unit apartment complex. Council Member Peat asked which parcels on the Lincoln Avenue Specific Plan have a 30 unit per acre density, and which are not yet developed. The City Planner displayed a map that indicated three identified parcels on Lincoln Avenue which satisfy the Regional Housing Needs Assessment (RHNA). Mayor Pro Tem Yarc asked if the Lincoln Avenue Specific Plan could include commercial developments. The City Planner responded in the affirmative, and indicated that the Lincoln Avenue Specific Plan includes Commercial Mixed Uses and residential. Council Member Peat asked about the allowable level of residential density development on Lincoln Avenue. The City Planner displayed a map depicting an area that allows up to a maximum of 20 units per acre. Council Member Morales asked about required affordable housing and the number the City has thus far. The City Planner replied that there must be 308 units over the next eight years, and that the current number of units is not immediately known but could be provided by staff at a later time. The City Manager stated that the current number of affordable housing units is a low amount and spoke of the City's obligation to provide development sites for affordable housing units. Mayor Pro Tem Yarc asked about the City control over private property and the ability to condemn property. 5 043 CITY COUNCIL MINUTES SEPTEMBER 21, 2015 The City Manager indicated that the City would have to create the regulatory framework that would allow for affordable housing in an expeditious manner. Mayor Pro Tem Yarc asked about the benefits to the City to meet 50,000 in population. The City Manager indicated that there is a small amount of CDBG monies, Tess than $10,000 annually, that the City would receive should its population be at least 50,000. Mayor Johnson asked about affordable housing guidelines. The City Manager replied that State law dictates affordable housing sale pricing, number of residents, and income level qualifications. Mayor Johnson spoke of Habitat for Humanity developments in the City. Mayor Pro Tem Yarc asked about the promotion of commercial growth in the City. The City Manager spoke of active successful development projects that include BRACE, AGENT, adaptive reuse of the OfficeMax site to a restaurant, customer service for assistance in commercial developments, a strong relationship with the Cypress Chamber of Commerce, demographic market research, and a strong relationship with Cypress Land and Warland Investments. Mayor Johnson thanked City staff for their presentations, the City Attorney for his legal guidance, and the City Manager for his updates on the City's business master plan. ADJOURNMENT: Mayor Johnson adjourned the meeting at 7:45 p.m. to Monday, September 28, 2015, beginning at 5:30 p.m. in the E.ecutive Board Room. ATTEST: PACIL CTY CLERK OF THE CITY OF CYPRESS 6 MAYOR THE CITY OF CYPRESS 044