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11-25-19 MINUTES OF A ' GULAR MEETING OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS, CALIFO ' IA MONDAY,NOVEMBER 25,2019 1. CALL TO 0 ' I ER A regular meeting of the City Council of the City of Rolling Hills was called to order by Mayor Mirsch at 7:06p.m. in the City Council Chamber at City Hall, 2 Portuguese Bend Road, Rolling Hills, California. 2. ROLL CALL PLEDGE OF ALLEGI CE PLEDGE OF ALLEGIANCE WAS LED BY GUEST OF THE MAYOR, 5TH GRADE ELEMENTARY SCHOOL STUDENT MATEYA JENG. Councilmembers Present: Mayor Mirsch, Pieper, Dieringer, Black and Wilson. Councilmembers Absent: None Others Present: Elaine Jeng, P.E., City Manager. Meredith Elguira, Planning and Community Services Director Yohana Coronel, City Clerk Michael Jenkins, City Attorney Carrie & Jim Holland, Ambassadors with OneLegacy. Vahe Avedissian, 14 Caballeros Jack Shoemaker, 9 Maverick Lane Beate Kirmse, 2 Chuckwagon Road Bern Galvin, 2 Chuckwagon Road Diana Howard, 85 Eastfield Drive Dr. Richard Krauthamer, 41 Crest Road West Roger Hawkins, 37 Crest Road West Alfred Visco, 15 Cinchuring Road Mark Stetson, 71 Saddleback Road 3. OPEN AGENDA- PUBLIC COMMENT WELCOME Carrie&Jim Holland, Ambassadors with OneLegacy. Mrs. Holland stated she came to follow up on an email invitation that was sent to the Council inviting them to an exclusive first look of the Donate Life Rose Parade Float. Mrs. Holland described the float in detail and provided a date and time for the early viewing. Mrs. Holland emphasized the importance of advocating and educating the public on organ, eye and tissue donation. Mrs. Holland shared her personal connection to the organization: her husband, Jim, was a liver transplant recipient and her younger brother, Marty, who passed away, donated his kidneys, saving two strangers' lives. Mayor Mirsch thanked Mrs. Holland for her comments. Vahe Avedissian, 14 Caballeros, commented on the ordinance regarding view preservation. Mr. Avedissian referenced the City's ordinance that protects a resident's views from vegetation, however,he was shocked that the current ordinance does not offer the same protection from homes that are being built under one thousand square feet. Mr.Avedissian stated it provides an unintended loophole, allowing properties of fewer than one thousand square feet an exemption; allowing them not to comply with the current view preservation ordinance. Mr. Avidissian requested the subject matter be agendized for a future Council meeting. Mayor Mirsch thanked Mr. Avidissian for his comments and responded that the Council cannot take action on an item not on the agenda. Mayor Mirsch informed Mr. Avedissian that Planning& Community Services Director, Meredith Elguira, would reach out and provide him with pertinent information. -1- 4. CONSENT CALENDAR Matters which may be acted upon by the City Council in a single motion. Any Councilmember may request removal of any item from the Consent Calendar causing it to be considered under Council Actions. A. MINUTES —REGULAR MEETING OF OCTOBER 28, 2019. ' COMMENDATION: APPROVE AS P ' SENTED B. PAYMENT OF BILLS. ' COMMENDATION: APPROVE AS P' SENTED C. FINANCIAL STATEMENT FOR THE MONTH OF OCTOBER 2019. ' COMMENDATION: APPROVE AS P ' SENTED D REPUBLIC SERVICES RECYCLING TONNAGE REPORT FOR OCTOBER 2019. ' COMMENDATION: APPROVE AS ' SENTED Mayor Mirsch stated that Council had updated minutes. Councilmember Dieringer pulled consent item 4A and requested it be presented at a future meeting, allowing Council to review and make suggestions on the item. Mayor Pro Tern Pieper moved that the City Council approve consent items 4B, 4C and 4D as presented. Councilmember Black seconded the motion. The motion passed unanimously by voice vote. AYES: COUNCILMEMBERS: Mayor Mirsch, Pieper, Dieringer, Black, and Wilson NOES: COUNCILMEMBERS: None. ABSENT: COUNCILMEMBERS: None. ABSTAIN: COUNCILMEMBERS: None. 5. COMMISSION ITEMS NONE. 6. PUBLIC HEARINGS NONE. Mayor Mirsch moved item 10B. Matters From Staff due to the large number of public comment speakers present. 10B. RECEIVE AND FILE A PRESENTATION ON RECENT HOUSING LAW CHANGES, COMMENTS FROM THE STATE ON THE CITY'S 5TH CYCLE HOUSING ELEMENT AND THE SCHEDULE OF EVENTS FOR THE 6TH CYCLE HOUSING ELEMENT. Planning and Community Services Director, Meredith Elguira, presented on the recent housing law changes in California. Planning Director Elguira defined the Housing Element, which is one of the seven elements of a City's General Plan. Planning Director Elguira described the role of the Housing Element in the City' General Plan and the requirements of certification,made every eight years,by the State of California. Planning Director Elguira highlighted the following: the Housing Element requires cities to provide a fair share of housing for all economic segments of the community; the Department of Housing and Community Development (HCD) identifies housing needs for each region, certifies the Housing Element and reports non-compliant cities to the Attorney General; Southern California Association of Governments (SCAG) is comprised of six counties, including the City of Rolling Hills; and the Regional Housing Needs Assessment (' A) quantifies the need for housing within each jurisdiction. RHNA determines the regional number and establishes the number of housing units that each city and county must provide along with zoning capacity for the required units for the eight year planning period. SCAG and HCD adopt and approve ' A numbers,then the City and County Minutes City Council Meeting 11-25-19 -2- must update its Housing Element to comply with RHNA. Planning Director Elguira emphasized its importance, as the City has not been in compliance since 1969. HCD ordered the City of Rolling Hills to comply in the current and previous cycles. Per new State legislation, the City must now comply with previous (2006-2013) and current (2013-2021) cycles, meaning the City must provide 18 affordable units. The cycle to follow covers the planning period, October 2021 through October 2029. The State is ordering the City of Rolling Hills to be compliant in the following cycle by identifying physical sites for affordable housing within City limits to accommodate 44 units. This must include very low to moderate income units and lots for development and redevelopment. As the State does not require the City to construct affordable housing, Planning Director Elguira, explained the path the City would take to comply with the current cycle. Planning Director Elguira reminded the Council that the City has to respond to State comments within a certain time frame; additionally, the City is ordered to rezone and identify lots within its boundaries, and resubmit a revised Housing Element by October 2020. Planning Director Elguira presented and highlighted potential sites within the City to Council, utilizing a 2013 map produced by SCAG. There are 43 vacant lots, 34 unimproved lots, 7 Rights- of-Way lots, 7 publicly owned lots, (6 City properties, 1 School owned, and 1 outside the gates), and 4 parcels located outside the gate (2 City Owned, Civic Center and Tennis Courts, 1 School property, and 1 privately owned Daughters of Mary Joseph Retrieve Center "DMJRC"). She proceeded to state that staff is working to protect the City's character and maintain single-family zoning and low density. She highlighted the pros and cons as well as an overview of the analysis for four potential sites: the Tennis Court, Civic Center, DMJRC and the PVPUSD school. Planning Director Elguira reviewed the City's timeline and restated the State's requirement to submit a revised 5th cycle Housing Element by October 2020. The City has to prove their revised Housing Element hit certain milestones in an effort to be compliant with State law. In response to the housing crisis, the State has passed legislations fining municipalities out of compliance, between $10,000 to $600,000 per month, additionally, the court may require the State Controller to intercept any State and local funds until substantial compliance is reached. In an effort to increase the supply of housing, the State passed Assembly Bill 671 and Bill 139 to promote and incentivize creation of Accessory Dwelling Units (ADU) to be used for affordable rental units. City staff is currently exploring possibilities between ADUs and City's RHNA requirements,which may allow the City to avoid rezoning. City staff is in the process of applying for a SB2 Grant to offset the General Fund and cover the Housing Element expenses. Councilmember Black clarified that the City was not involved in the decision of the amount of units proposed to be built. He noted he has been on the Council since 2002 and has known that the City has been out of compliance and it was his belief that the Council purposely did not zone for low-income housing. Councilmember Dieringer stated that it was her belief, that at the time, the Council believed that it had been in compliance with the necessary requirements. She added that it was her understanding that, in order to be compliant, the City had given away monies to other cities for the purpose of building affordable housing. Councilmember Black clarified that the City did not give money to other cities. City Manager Elaine Jeng further clarified that the money Councilmember Dieringer is referring to, was a block grant provided to the City from the State. Mayor Mirsch thanked the staff and Planning Director Elguira for putting together the informative presentation. She asked for public comments to be limited to under 3 minutes to assure everyone present had time to speak. Jack Shoemaker, 9 Maverick Lane,inquired if property owners could designate part of their parcel for ADU to satisfy the State's requirements. City Attorney Michael Jenkins suggested that answers to public comment questions be answered after the public comment is closed. Minutes City Council Meeting 11-25-19 -3- Mayor Mirsch thanked and concurred with City Attorney Jenkins' suggestion. Beate Kirmse,2 Chuckwagon Road,spoke about building an ADU but was denied by the Planning Department. She was informed a guesthouse was permissible if it was not rented out. She added that she would happily convert part of her property to an ADU and in an effort to help the City count it as part of the required units. Bern Galvin, 2 Chuckwagon Road, inquired about the formula for the low-income housing units with respect to ADUs. Diana Howard, 85 Eastfield Drive, inquired about the number of barns that had been converted into residences. She suggested legitimizing them and counting them as part of the City's required units. She asked if the City would have to purchase the PVPUSD land. Dr. Richard Krauthamer, 41 Crest Road West, asked when the first unit had to be built, rezoning for PVPUSD and zoning restrictions for the developer. Dr. Krauthamer requested the City restrict the developer and not allow the developer to build an access road behind the gate. Dr. Krauthamer mentioned the lack of public transportation, medical health facilities, drug addiction centers, and job opportunities.He suggested the other options mentioned by Planning Director Elguira are more visible, accessible and closer to public transportation. Dr. Krauthamer inquired about the process for determining the low-income people and whether residents have a vote in the process. Roger Hawkins, 37 Crest Road West,asked for the number of cities currently not compliant in the State of California. Mr. Hawkins also asked whether the Engine Company 56 lot could be considered to satisfy some of the building requirements. Alfred Visco, 15 Cinchring Road, asked if Council considered rezoning properties that are outside the City's gates, along PV Drive North. Mark Stetson, 71 Saddleback Road, asked if the following cycle, 44 units include units required from the previous and current cycle. Mayor Mirsch thanked the public for their participation and closed the public comment. She stated the Councilmembers reside in Rolling Hills and share the same concerns addressed by residents. City Manager Jeng shared that Governor Gavin Newsom invited noncompliant cities to a meeting in Long Beach in February of 2019. Mayor Pat Wilson, then Mayor, learned 47 out of 500 cities that were noncompliant. City staff inquired about the ADU Ordinance and how it can help the City with its RI-INA numbers. State representatives could not provide a concrete answer and further explained that in order for an ADU unit to qualify to meet a RHNA category unit, the City would need to review an ADU rental agreement and income category to determine compliance. City Manager Jeng and Planning Director Elguira researched other cities and their Housing Elements, and learned the State has an ADU policy and permitted some cities to use ADUs to count in their RI-1NA numbers. Unfortunately,the State's position on ADUs is not concretely known, as there is additional level of requirements to have ADUs count towards cities' RHNA numbers. City Manager Jeng proceeded to answer the question of when the first affordable housing unit must be built. She stated that there is no requirement imposed on the City to build. It is more of a planning exercise, requiring the City to issue a planning document that would allow a developer to build these units. Planning Director Elguira answered the following questions: 1) Can property owners designate part of their parcel(s) as an ADU to satisfy the State requirements? Planning Director Elguira stated that there would be new State legislation that will be more lenient towards building ADUs, but currently the City has not received confirmation that it will count for RHNA numbers. City Attorney Michael Jenkins added that if an ADU is to count towards the RHNA numbers for Minutes City Council Meeting 11-25-19 -4-