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HomeMy WebLinkAboutStaff Report 5.C 05/04/2020a��LU Agenda Item #5.0 z85s DATE: May 4, 2020 TO: Honorable Mayor and Members of the City Council through City Manager; `J FROM: Brittany Bendix, Deputy Planning Manager SUBJECT: Introduction of an Ordinance approving Zoning Text Amendments to the SmartCode Section 1.10.010, Table 3. 1, Section 4.70.040 and Section 9.10.020 to clarify land us size limitations, align specific permit requirements, enable administrative Site Plan and Architectural Review, and coordinate reference to green building requirements RECOMMENDATION It is recommended that the City Council introduce an ordinance approving Zoning Text Amendments to the SmartCode to modify Section 1.10.010 (Applicability of Code Standards), Table 3.1 (Allowed Building Functions and Permit Requirements), Section 4.70.040 (Building Material Guidelines), and Section 9.10.020 (Definitions of Specialized Terms and Phrases) to clarify land use size limitations, align specific permit requirements with the Implementing Zoning Ordinance (IZO), enable administrative Site Plan and Architectural Review for minor scopes of work, and coordinate reference to Green Building requirements with those of the current Building Code. The Council may also wish to provide policy direction regarding future code amendments to create parking maximums instead of or in addition to parking minimums. BACKGROUND The Central Petaluma Plan r r . and SmartCode provide specific land use ai development. • for an area generally boundedby on and nort PetalumaBoulevard on i Highway 101 on the south.i• .• in June of 00 shopping,Plan envisions Central Petaluma to be a place where a wide range of new employment, housin i entertainment activities develop in relativet t one • urban• adjacent o the historicdowntown and the Petaluma River.As an appendix•. tile r r initialr' t was adopted • provide zoning regulations for CPSP boundaries. In 2013, the City adopted t Area Master Plan and an amended SrnartCode to furthm advance • for area. amended SmartCode included significantrevisions regulatoryprocesses,and creationwarrants • variances to provi l flexibilitv. Since that aipplication of r ••- standards hasproceeded smoothl - howev identifiedstaff has areas •uld benefit from greater clarity and/or flexibility wA standard especially as they relate to market changes, modification to the Implementing Zoning Ordinanc. Page I which governs the broader City, and advancements in Green Building practices. I lo NO V R. • me I is I RM tog�' 'i• ♦ . �. • Provision for Administrative Site Plan and Architectural Review for smaller projects and matching provisions in the IZO • Reference to Nome Occupation Permit requirement in the land use table • Clarification of size limitations for specific land uses • Modification to the definition of Artisan Craft Product Manufacturing to include small scale food and beverage manufacturing • Creation of a new land use category for Tasting Rooms to be allowed with a Minor Use Permit The proposed amendments were presented to the Planning Commission on March 10, 2020 and the Planning Commission approved Resolution No. 2020-04 recommending City Council approval of the SmartCode amendments. The Planning Commission identified most of the proposed amendments as legislative clean-up items. Each of the proposed amendments is presented in Attachment 3 to include a summary of the existing regulation, the proposed modifications, and the rationale for the amendment. In addition to these modifications, the staff report also initiated a discussion with the Planning Commission regarding the potential for future modifications to transition parking requirements for properties within the SmartCode boundaries from parking minimums to parking maximums. Staff raised this topic in response to recent feedback from both the public and decision makers during specific project review. In addition to the discussion regarding a future transition to parking maximums, the Planning Commission's deliberation also focused on regulations and oversight of tasting rooms and public noticing practices. The following surmnarizes the Planning Commission's discussion on those specific topics. Public Noticing During the public comment portion of the hearing, a resident raised a concern that the proposed amendments were reducing public involvement when their opinion was that increased public involvement was desired. Changes to allow Administrative SPAR and allowing tasting rooms and small scale food and beverage manufacturing with a Minor Use Permit would reduce noticing from the required 1,000 foot radius for major projects to the 500 foot radius for administrative projects. This comment carried forward into the Planning Commission's discussion about the appropriate noticing radius for projects and consideration of whether increased public noticing should be encouraged to require a 1,000 foot noticing radius for all projects. During this discourse, staff reminded the Commission of the most recent changes to noticing requirements adopted by the City Council in 2018 to increase the radius to 1,000 feet and requirement for onsite posting for major projects and acknowledged that the minimum radius required by State Code is 300 feet. Staff also noted that the cost of preparing and mailing notices is applied to the project and that while the cost varies for each project based on the number of owners and occupants within the noticing area that Page 2 generally the 1,000 foot radius is significantly more expensive for the project. The majority of Commissioners indicated that the current noticing requirements based on the scope of the project (major versus minor) is acceptable although there was openness to future discussion. Commissioner Streeter indicated that the City of Santa Rosa has seen an increase in participation by shifting to a postcard notice. Commissioner Gomez encouraged staff to consider ways to use social media and the website to expand outreach regardless of the required noticing radius. Commissioner Alonso, indicated he did not believe the 500 -foot radius sufficient for administrative projects and encouraged staff to pursue increasing it to 1,000 feet. No changes to the amendments were proposed as a result of the Commission's discussion. Tasting Rooms Building on the discussion of public noticing, Commissioner Alonso raised a concern that the proposed amendments would diminish the Planning Commission's oversite with regards to tasting rooms, either as a component to a food and beverage manufacturing use, or as a stand-alone use. The Commission discussed the proposed modifications to allow Tasting Rooms through a Minor Use Permit, with particular focus on the Planning Division's coordination with the Police Department, avoidance of an over -concentration, and the review framework for processing a Minor Use Permit. Staff clarified the differences between the administrative review process for MUP or Administrative SPAR as differentiated from Planning Commission review of a CUP or Major SPAR. The two scales of review are distinct from each other in the cost of the application and the requirement for a public hearing. The standards of review, internal coordination with City departments, and application of conditions of approval remain the same. Additionally, the intent of offering an administrative review process is to provide a more cost effective and time efficient path for small projects, which is essential for small businesses that may need to pay rent while seeking entitlements or individual property owners that are pursuing minor improvements to their sites. Coordination with the Police Department relative to alcohol related establishments happens regardless, and if the Police Department, or any other City department or division raises strong objections to a project during administrative review, the Planning Manager can refer the application to the Planning Commission for a public hearing. This would also be the case should over -concentration and resulting impacts become a concern. Additionally, all administrative decisions can be appealed to the Planning Commission. Upon further discussion the majority of Commissioners appreciated the flexibility afforded to tasting rooms to proceed through the administrative review process, especially as this is consistent with the controls in the IZO as amended in 2018, and that since that time staff has not received public opposition to such projects. Further, Commissioners suggested that should over - concentration become an issue of concern in the future, the matter return for consideration and policy direction. Ultimately, six of the Commissioners voted in support of the text amendments as initially proposed. However, Commissioner Alonso voted against the modification package maintaining his concern that the lack of direct oversight by the Commission and potential for over - concentration of tasting rooms was a matter of public health and merited additional study and outreach prior to any procedural changes. Page 3 Parking Maxilmns Although there was no formal action before the Planning Commission relative to applying parking maximums in the SmartCode, the Commission welcomed the discussion and supported advancing the concept. There was also consensus that such a policy shift should use incentives or exceptions to encourage less parking, rather than using restrictions. Additionally, some Commissioners recommended the following information should zoning amendments be brought forward in the future: • The influence of onsite parking relative to financing options through banks, with the desire to not create additional financial obstacles • The appropriateness of maintaining some level of a minimum parking requirement • Comparison with other cities of a similar scale to Petaluma that have shifted their parking requirements and using those case studies to assess unintended consequences • Ensuring that parking maximums do not impact ADA accessibility • Ensuring that visitor serving uses have adequate parking DISCUSSION Prior to approving a Zoning Text Amendment the City Council must find that the amendments conform to the Petaluma General Plan and are consistent with the public necessity, convenience, and general welfare in accordance with Section 25.050(B) of the Implementing Zoning Ordinance. As outlined in the Planning Commission Resolution No. 2020-04, the proposed zoning text amendments are in general conformity with the Petaluma General Plan 2025 and Central Petaluma Specific Plan in that the amendments do not change the general character or impacts of current zoning regulations. The proposed amendments to the SmartCode provide greater clarity for existing controls by simplifying language and bring requirements into alignment with the IZO and Building Code. Ultimately, the changes support the General Plan's overall goal to guide development in line with the vision and underlying policies. Specifically, the proposed text amendments are consistent with the following General Plan policies: Policy 1-P-7: Encourage flexibility in building form and in the nature of activities to allow for innovation and the ability to change over time. Policy 1-P-9: Support continued development and intensification of employment centers. Policy 1-P-13: Maintain Downtown as the City's geographic and symbolic center and a focus of commercial activities. Policy 9-P-1: Retain and attract `basic' economic activities that bring dollars into the local economy by exporting products and services. Allow flexibility within the City's standards and regulations to encourage a variety of housing types. The proposed amendments are consistent with the public necessity, convenience, and welfare in that they update and clarify existing regulations, provide greater flexibility in processing Page 4 development proposals, and remove identified obstacles to the implementation of the zoning code, which implements the policies of the General Plan. CITY GOALS The proposed text amendments are in alignment with the following City Council Goals for 2019- 2021: Workplan Item #101: Create and promote business -friendly City operations such as zoning, permitting and licensing. Workplan Item #106: Enhance information on licensing and permitting guidelines to be accessible and understandable to all. Workplan Item #110: Retain businesses that support local agriculture (e.g. processing, product development). Workplan Item #111: Incentivize, support, and incubate small, start-up businesses. Workplan Item #122: Review Downtown zoning to identify ways to balance entertainment venues with retail and services and to incorporate SmartCode ENVIRONMENTAL REVIEW The proposed zoning text amendments are exempt from CEQA pursuant to CEQA Guidelines Sections 15061(B)(3), General Rule, in that there is no possibility that the approval of the modifications to the SmartCode will result in a significant impact on the environment. Additionally, the zoning text amendments are exempt pursuant to CEQA Guidelines Section 15183 in that the modifications are consistent with the General Plan as discussed above. The subject zoning text amendments are minor modifications to existing regulations that only apply to specific locations and uses as governed by the SmartCode, consistent with the General Plan. For the above reasons, the proposed amendments are exempt from environmental review. PUBLIC OUTREACH Public notice for both the March 10, 2020 Planning Commission meeting and the Mary 4, 2020 City Council meeting was published in the Argus Courier as an eighth page ad at least ten days prior to each public hearing. No written public comments have been received in response to either public notice. Two members of the public spoke at the Planning Commission hearing on March 10, 2020. One individual, as noted above encouraged the Commission to consider expanding the notification radius for administrative projects from 500 feet to 1,000 feet. A second individual spoke to provide encouragement of future study of parking maximums. Page 5 FINANCIAL IMPACTS The SmartCode Amendments were drafted by staff under Base Level Services without any additional cost to the General Fund. ATTACHMENTS Attachment 1: Draft Ordinance Exhibit 1: SmartCode Amendments Clean Copy Attachment 2: Planning Commission Resolution No. 2020-04 Attachment 3: Planning Commission Staff Report, March 3, 2020 Attachment 4: Redline of Proposed SmartCode Amendments Page 6 ATTACHMENT 1 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA AMENDING THE TEXT OF THE SMARTCODE, ORDINANCE NO. 2470 N.C.S., TO MODIFY SECTION 1.10.010 (APPLICABILITY OF CODE STANDARDS), TABLE 3.1 (ALLOWED BUILDING FUNCTIONS AND PERMIT REQUIREMENTS), SECTION 4.70.040 (BUILDING MATERIAL GUIDELINES), AND SECTION 9.10.020 (DEFINITIONS OF SPECIALIZED TERMS AND PHRASES) TO PROVIDE CLARITY ON LAND USE LIMITATIONS AND PROCEDURAL REQUIREMENTS WHEREAS, the text amendments contained in Exhibit 1 to this ordinance would modify the following sections of the City's SmartCode Ordinance 2470 N.C.S.: Section 1.10.010 (Applicability of Code Standards), Table 3.1 (Allowed Building Functions and Permit Requirements), Section 4.70.040 (Building Material Guidelines), and Section 9.10.020 (Definitions of Specialized Terms and Phrases); and WHEREAS, the text amendments contained in Exhibit I would provide clarification and minor updates common to address changing trends in land use and construction and to more effectively use the SmartCode to implement City policy as adopted in the Petaluma General Plan and Central Petaluma Specific Plan; and WHEREAS, on February 27, public notice of the March 10, 2020 Planning Commission meeting to consider the amendments was published in the Argus Courier as an eighth page ad; and WHEREAS, pursuant to IZO Section 25.050, the Planning Commission held a duly noticed public hearing to consider the zoning text amendments on March 10, 2020, at which time all interested parties had the opportunity to be heard; and WHEREAS, after the conclusion of said public hearing, the Planning Commission adopted Resolution No. 2020 -XX, recommending the City Council adopt the amendments; and WHEREAS, on April 23, 2020, public notice of the May 4, 2020 public hearing before the City Council to consider the amendments was published in the Argus Courier in accordance with Government Code Section 65090; and WHEREAS, on May 4, 2020, the City Council of the City of Petaluma held a duly noticed public hearing to consider the amendments. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS: Section 1: Findings. The City Council of the City of Petaluma hereby finds: The text amendments contained in Exhibit 1 to this ordinance, which exhibit is hereby made a part of this resolution for all purposes, are exempt from CEQA pursuant to Sections 15061(b)(3) and 15183 in that the proposed text amendments are minor modifications to existing regulations that will only apply to specific locations and uses as governed by the SmartCode. ATTACHMENT 1 2. In accordance with Sections 25.010 and 25.050(B) of the City' s Implementing Zoning Ordinance, Ordinance No. 2300 N.C.S., ("IZO"), the proposed amendments to the SmartCode as contained in Exhibit 1 are in general conformity with the Petaluma General Plan 2025 in that these amendments do not change the general character or impacts of current zoning regulations and implement the General Plan as outlined in the March 10, 2020 Planning Commission staff report, which is incorporated into this ordinance by this reference. 3. In accordance with Section 25.050(B) of the IZO, the proposed amendments are consistent with the public necessity, convenience, and welfare in that they update and clarify existing regulations, provide greater flexibility in assigning designations to current land uses, and remove identified obstacles to the implementation of the zoning code, which implements the policies of the General Plan. Section 2: Section 1.10.010 of the SmartCode, Ordinance No. 2470 N.C.S. is hereby amended to read as follows: H. Design Review. All buildings and associated site improvements within the Central Petaluma Specific Plan boundaries are subject to Site Plan and Architectural Review and approval, as outlined in Petaluma Implementing Zoning Ordinance Section 24.010. Refer to the Architectural Guidelines (Appendix "B" of the Central Petaluma Specific Plan) for example illustrations and information on architectural character in the Specific Plan area. Section 3: Table 3.1 of the SmartCode, Ordinance No. 2470 N.C.S. is replaced by Exhibit 1 to this ordinance. Section 4: Section 4.70.040 of the SmartCode, Ordinance No. 2470 N.C.S. is hereby amended to read as follows: D. CALGreen Requirements. Building shall meet or exceed the current requirements of the adopted local Building Code and any associated Reach Codes. Section 5: Section 9.10.020 of the SmartCode, Ordinance No. 2470 N.C.S. is amended to read as follows: Artisan/Craft Product Manufacturing. An establishment manufacturing and/or assembling small products primarily by hand, including jewelry, pottery and other ceramics, as well as small glass and metal art and craft products. Includes taxidermists. May also include small scale artisan food and beverage product manufacturing and affiliated tasting rooms. Bar/Tavern. A business where alcoholic beverages are sold for on-site consumption, which are not part of a larger restaurant. Includes bars, taverns, 10 ATTACHMENT 1 pubs and similar establishments where any food service is subordinate to the sale of alcoholic beverages. May also include beer brewing as part of a microbrewery, and other beverage tasting facilities. Does not include adult entertainment businesses. Does not include tasting rooms that are limited to a sole manufacturer. Food and Beverage Product Manufacturing. Manufacturing establishments producing foods and beverages for human consumption, and certain related products. Examples of these uses include: bottling plants; breweries; candy, sugar and confectionery products manufacturing; catering services separate from stores or restaurants; coffee roasting; dairy products manufacturing; fats and oil product manufacturing; fruit and vegetable canning, preserving, related processing; grain mill products and by- products; meat, poultry and seafood canning, curing, byproduct processing; soft drink production; miscellaneous food item preparation from raw products; wineries. Does not includes: bakeries, which are separately defined; beer brewing as part of a brewpub, bar or restaurant (see 'Bar/Tavern," and "Night Club"); or tasting rooms. Tasting Room. A facility or portion of a facility that supports a small-scale artisan craft brewery, distillery, or winery. The tasting room shall only serve and/or sell those beverages produced by the operating manufacturer and may operate at a separate location from the production facilities if under a duplicate ABC license type. The tasting room must also comply with all applicable ABC and State regulations for wine, beer and distilled spirit manufacturers and tasting rooms. Section 6: Except as amended herein, the SmartCode, Ordinance No. 2470 N.C.S. remains unchanged and in full force and effect. Section 7: Severability. If any section, subsection, sentence, clause, phrase or word of this ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court of competent jurisdiction or preempted by state legislation, such decision or legislation shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Petaluma hereby declares that it would have passed and adopted this ordinance and each and all provisions thereof irrespective of the fact that any one or more of said provisions be declared unconstitutional, unlawful or otherwise invalid. Section 8: Effective Date. This Ordinance shall become effective thirty (30) days after the date of its adoption by the Petaluma City Council. Section 9: Posting/Publishing of Notice. The City Clerk is hereby directed to publish or post this ordinance or a synopsis for the period and in the manner provided by the City Charter and other applicable law. 1-3 Attachment 2 CITY OF PETALUMA PLANNING COMMISSION RECOMMENDING THE CITY COUNCIL APPROVE A ZONING TEXT AMENDMENTS TO THE SMARTCODE, ORDINANCE NO. 2470 N.C.S., TO MODIFY SECTION 1.10.010 (APPLICABILITY OF CODE STANDARDS), TABLE 3.1 (ALLOWED BUILDING FUNCTIONS AND PERMIT REQUIREMENTS), SECTION 4.70.040 (BUILDING MATERIAL GUIDELINES), AND SECTION 9.10.020 (DEFINITIONS OF SPECIALIZED TERMS AND PHRASES) TO PROVIDE CLARITY ON LAND USE LIMITATIONS AND PROCEDURAL REQUIREMENTS WHEREAS, the text amendments contained in Exhibit 1 to this resolution would modify the following sections of the City's SmartCode Ordinance No. 2470 N.C.S., Section 1.10.010 (Applicability of Code Standards), Table 3.1 (Allowed Building Functions and Permit Requirements), Section 4.70.040 (Building Material Guidelines), and Section 9.10.020 (Definitions of Specialized Terms and Phrases); and WHEREAS, the text amendments contained in Exhibit 1 would provide clarification and minor updates common to address changing trends in land use and construction and to more effectively use the SmartCode to implement City policy as adopted in the Petaluma General Plan and Central Petaluma Specific Plan; and WHEREAS, on February 27, public notice of the March 10, 2020 Planning Commission meeting to consider the amendments was published in the Argus Courier as an eighth page ad; and WHEREAS, pursuant to IZO Section 25.050, the Planning Commission held a duly noticed public hearing to consider the zoning text amendments on March 10, 2020, at which time all interested parties had the opportunity to be heard; and WHEREAS, the Planning Commission considered the staff report dated March 10, 2020 including the California Environmental Quality Act (CEQA) determination included therein; and WHEREAS, IZO Section 25.010 provides for Zoning Text Amendments, which in this case has been initiated by the Community Development Director. NOW THEREFORE BE IT RESOLVED by the Planning Commission as follows: 1. The above recitals are hereby declared to be true and correct and are incorporated into the resolution as findings of the Petaluma Planning Commission. 2. The text amendments contained in Exhibit 1 to this resolution, which exhibit is hereby made a part of this resolution for the purposes, are exempt from CEQA pursuant to Sections 15061(b) (3) and 15183 in that the proposed text amendments are minor modifications to existing regulations that will only apply to specific locations and uses as governed by the SmartCode. 3. In accordance with Sections 25.010 and 25.050(B) of the City' s Implementing Zoning Ordinance, Ordinance No. 2300 N.C.S., (" IZO"), the proposed amendments to the SmartCode as contained in Exhibit 1 are in general conformity with the Petaluma General Plan 2025 in that these amendments do not change the general character or impacts of current zoning regulations and implement the General Plan as outlined in the March 10, 2020 Planning Commission staff report. 4. In accordance with Section 25.050(B) of the IZO, the proposed amendments are consistent with the Planning Commission Resolution No. 2020-04 Page 1 public necessity, convenience, and welfare in that they update and clarify existing regulations, provide greater flexibility in assigning designations to current land uses, and remove identified obstacles to the implementation of the zoning code, which implements the policies of the General Plan. 5. The proposed amendments attached hereto as Exhibit 1, are hereby recommended to the Petaluma City Council for consideration and finings in accordance with Sections 25.010 and. 25.050 of the City's Implementing Zoning Ordinance. ADOPTED this 10th day of March, 2020, by the following vote: Commission Member Aye No Councilmember X McDonnell Chair Alonso X Vice Chair Bauer X Gomez X Marzo X Potter X Streeter X ATTEST: Heather Hines, Commission Secretary Scott Alonso, Chair Absent Eric Danly, City Attorney GI: n, m Planning Commission Resolution No. 2020-04 Page 2 DATE: March 3, 2020 TO: Planning Commission FROM: Brittany Bendix, Deputy Planning Manager Attachment 3 Wei 110 7_\119100 [em/ ? SUBJECT: Zoning Text Amendment to SmartCode Section 1.10.010, Table 3.1, Section 4.70.040 and Section 9.10.020 to provide clarity on use size limitations to better assist the public, to align permit requirements with the Implementing Zoning Ordinance (IZO), to enable administrative Site Plan and Architectural Review for minor scopes of work — as consistent with the IZO, and to align Green Building requirements with those of the current Building Code. RECOMMENDATION It is recommended that the Planning Commission adopt a resolution recommending that the City Council approve a Zoning Text Amendment to the SmartCode, modifying Section 1.10.010 (Applicability of Code Standards), Table 3.1 (Allowed Building Functions and Permit Requirements), Section 4.70.040 (Building Material Guidelines), and Section 9.10.020 (Definitions of Specialized Terms and Phrases) to provide clarity on use size limitations to better assist the public, to align permit requirements with the Implementing Zoning Ordinance (IZO), to enable administrative Site Plan and Architectural Review for minor scopes of work — as consistent with the IZO, and to align Green Building requirements with those of the current Building Code. (Attachment A) DISCUSSION Site Plan and Architectural Review Section 1.10.010 of the Smart Code currently requires Planning Commission review for all building and site improvements within the Central Petaluma Specific Plan area. However, the SmartCode does not directly identify the mechanism or findings by which to conduct this review. In practice, this review process has functioned as Major Site Plan and Architectural Review (SPAR) consistent with the requirements outlined in Section 24.010 of the Implementing Zoning Ordinance (IZO). The proposed text change to SmartCode Section 1.10.010 would make the connection to the IZO explicit and remove any existing ambiguity. Additionally, the proposed amendment would allow Administrative Site Plan and Architectural Review for those projects that fall within the definition outlined in the IZO: "Tire Director may grant administrative site plan and architectural approval for nonproduction residential units in approved subdivisions of five or more lots, all residential development of less than five units, and all minor additions or modifications to industrial, commercial or office buildings, or may refer said development proposals to the Planning Commission. " (IZO Section 24.010.B) Page I Home Occupation Permits A Home Occupation use is a commercial activity conducted in a dwelling unit that is secondary to the use of that dwelling. Many of the uses that are permissible as home occupation activities, such as a professional offices and private one-on-one instruction, are principally permitted within the Central Petaluma Specific Plan area. However, the `home occupation' designation and permitting process enables the business activities to be conducted within a residence, subject to specific conditions that ensure the business is compatible with adjacent residential uses. SmartCode Table 3.1 indicates that a Home Occupation use is principally permitted in the T4, T5, T6, T6-0 and D4 transect zones. However, it does not include any reference to the actual home occupation permit outlined in IZO Section 7.050. In practice, residents pursuing a Home Occupation use at their residence must complete an over-the-counter application with the Planning Division and submit a Business License. This application process alerts residents to the operational conditions required of a Home Occupation use and asserts their awareness of these requirements. The proposed text amendments include a direct reference to IZO Section 7.050 to provide greater clarity. Use Size Limitations When the City adopted the Station Area Master Plan and the updated SmartCode in 2013 the newly adopted code introduced the Minor Use Permit application process. The Minor Use Permit process enables administrative review of proposals that necessitate conditional operation standards, but are otherwise routine, small in scale, or straightforward. These permits require a 10 -day mailed notice to all owners and occupants within 500 -feet and an advertisement in the local paper. Alternatively, the Conditional Use Permit process extends the notice area to 1,000 -feet, requires onsite signage, preparation of a staff report and a public hearing before the Planning Commission. The timeline and cost associated with a Conditional Use Permit versus a Minor Use Permit is significant. However, the required review and findings are consistent. Therefore, Minor Use Permits typically enable a more efficient and cost -sensitive pathway for small business owners who may be opening their first brick and mortar location. As part of the 2013 amendments to include the Minor Use Permit process, changes to SmartCode Table 3.1 included footnotes that addressed how the permitting requirements differed based on the size of certain uses. Footnote "Y in Table 3.1 limits certain small to moderate scale manufacturing uses to 5,000 square -feet on the ground floor. The proposed amendments would clean up the current language to express that clearly and concisely. Footnote "4" in Table 3.1 requires larger manufacturing or wholesaling uses to obtain either a Conditional or Minor Use Permit if they are greater than 8,000 square -feet on the ground floor. If the uses are 8,000 square -feet or less, then they are principally permitted. The proposed amendments clarify this requirement. Artisan/Craft Product Manufacturing Table 3.1 of the SmartCode sets forth the permit requirements for Artisan/Craft product manufacturing uses in the Central Petaluma Specific Plan Area. Such uses are principally permitted in the T4 and D3 Transects and require a Minor Use Permit in the T5, T6, and T6-0 Transects. As currently defined, artisan/craft product manufacturing includes a grouping of small manufacturing uses that are smaller in scale and less operationally intensive than larger manufacturing uses. Table 3.1 of the SmartCode also provides the permit requirements for Food and Beverage Product Manufacturing. This use requires a Conditional Use Permit in the T4, T5 and D1 Transects and is principally permitted in the D3 Transect. Page 2 In 2018, the City Council approved changes to the Implementing Zoning Ordinance that broadened the definition of Artisan/Craft Product Manufacturing to include small-scale artisan food and beverage product manufacturing when impacts are minimal. As a result, this change has enabled small business owners to locate small scale artisan food and beverage manufacturing in the downtown Mixed Use zoning districts. The IZO amendments in 2018 did not extend to the SmartCode, which covers the majority of non-residential tenant space in downtown and where there is still a demand from local small-scale food and beverage entrepreneurs to operate. The proposed amendments to SmartCode Section 9.10.020 would change the definition of Artisan/Craft Product Manufacturing in the SmartCode to be consistent with the definition and standards in the IZO. Tasting Rooms To further address the demand of local small-scale artisan food and beverage producers, the proposed SmartCode amendments include `Tasting Room' as a new land use category. As proposed, the definition for `Tasting Room' means a facility or portion of a facility that supports a small-scale artisan craft brewery, distillery, or winery. The tasting room shall only serve and/or sell those beverages produced by the operating manufacturer and may operate at a separate location from the production facilities if under a duplicate ABC license type. The tasting room must also comply with all applicable ABC and State regulations for wine, beer and distilled spirit manufacturers and tasting rooms. The proposed amendments would require a Minor Use Permit in the T4, T5, T6, T6-0 and D4 Transects. Tasting Rooms, as an individual land use category, are distinct from `Artisan/Craft Product Manufacturing' because they are allowed at the street front, on the ground floor and are not subject to the same square -footage controls as manufacturing spaces. As a small-scale use, Tasting Rooms are distinct from the `Food and Beverage Product Manufacturing' category which addresses large- scale operations. Tasting Rooms are distinct from the `Bar/Tavern' category because the are limited to a single manufacturer and typically do not have the same operating hours and service impacts as a bar/tavern use. Finally, Tasting Rooms are distinct from the `Alcoholic Beverage Sales' category because they include on -premise consumption and provide an ancillary retail component for a specific manufacturer, operating under a shared or duplicate ABC license for production. To track with the creation of "tasting rooms" as a separate land use category, changes are proposed to the definition of "Bar/Tavern" to exclude tasting rooms. Green Building Materials SmartCode Section 4.7.040 requires that all buildings meet the minimum requirements of CALGreen Tier I. As of January 2020, the Building Code requires CALGreen Tier lI compliance, and the City Council is poised to consider all -electric regulations in the near future. Therefore, the proposed amendments modify this requirement to align with and exceed the current requirements of the adopted local Building Code and any associated Reach Codes. Off -Street Parking Requirements Although the amendments included in the attached draft Ordinance do not include changes to the SmartCode's off-street parking requirements, staff would like to initiate a discussion with the Planning Commission on the topic of potential future amendments that would transition the CPSP area from a minimum parking standard to a maximum parking standard. This is especially relevant Page 3 as recent development proposals have generally provided more than the minimum amount of required parking spaces. However, the General Plan and Central Petaluma Specific Plan encourage a more transit oriented, bike and pedestrian friendly development pattern in the downtown core. Additionally, feedback from both the public and decision makers has been to encourage a more transit -oriented development pattern that is less dominated by the automobile. In response to this feedback staff is considering proposing an amendment that would limit automobile parking and encourage a development pattern more in keeping with the stated intent of the General Plan, CPSP, and Station Area Master Plan. The current off-street parking requirements for the SmartCode are stated as minimum requirements as follows: ■ One space per market rate housing unit ■ Half a space per affordable (below market rate) housing unit ■ One space per room in a lodging use ■ Two spaces per 1,000 square -feet for all other uses. Staff would like to engage the Planning Commission on this topic and get a sense of any preferred approach. For example, if the current requirements became parking maximums, instead of minimums, could developers seek an exception to exceed that maximum and what criteria should be used to evaluate that exception? The following is a list of criteria established by other jurisdictions that have parking maximums: 1. Vehicle movement on or around the project does not unduly impact pedestrian spaces or movement, transit service, bicycle movement, or the overall traffic movement in the district; 2. Accommodating excess accessory parking does not degrade the overall urban design quality of the project proposal; 3. All above -grade parking is architecturally screened and lined with active uses and the project proponent is not requesting any other exceptions or variances; 4. Excess accessory parking does not diminish the quality and viability of existing or planned streetscape enhancements; 5. Where more than 10 spaces are proposed at least half of them, rounded down to the nearest whole number are stored and accessed by mechanical stackers or lifts, valet, or other space -efficient means that reduces space used for parking and maneuvering, and maximizes other pedestrian oriented uses. Additional criteria could also reference the provision of below market rate units on-site, the application of green building features beyond minimum requirements, and the implementation of voluntary transportation demand management tools. G_\ 1 ►_ To recommend the proposed amendments to the City Council the Planning Commission must find that they conform to the Petaluma General Plan and are consistent with the public necessity, convenience, and general welfare in accordance with Section 25.050(B) of the Implementing Zoning Ordinance. The Planning Commission has discretion to recommend modifications to the proposed amendments. If it does so, the Commission should convey the reasons for the Page 4 modifications to the City Council. A simple majority vote of the Commission members present, assuming a quorum of Commissioners is present, suffices to approve a resolution recommending action on the amendments to the City Council. The proposed zoning text amendments are consistent in general conformity with the Petaluma General Plan 2025 and Central Petaluma Specific Plan in that the amendments do not change the general character or impacts of current zoning regulations. The proposed amendments to the SmartCode provide greater clarity for existing controls by simplifying language and bring requirements into alignment with the IZO and Building Code. Ultimately, the changes support the General Plan's overall goal to guide development in line with the vision and underlying policies. PUBLIC NECESSITY, CONVENIENCE, AND WELFARE The proposed amendments are consistent with the public necessity, convenience, and welfare in that they update and clarify existing regulations, provide greater flexibility in processing development proposals, and remove identified obstacles to the implementation of the zoning code, which implements the policies of the General Plan. ENVIRONMENTAL REVIEW The proposed zoning text amendments are exempt from CEQA pursuant to CEQA Guidelines Sections 15061(B)(3) and 15183 as follows: Section 15061(b)(3), General Rule, of the CEQA Guidelines is applicable as there is no possibility that the activity may have a significant impact on the environment in that proposed zoning text amendments Section 15183 of the CEQA Guidelines provides an exemption for projects that are consistent with the General Plan. The subject zoning text amendments are minor modifications to existing regulations that only apply to specific locations and uses as governed by the Implementing Zoning Ordinance, consistent with the General Plan. For the above reasons, the proposed amendments are exempt from environmental review. PUBLIC COMMENT Public notice was published in an eighth page ad in the Argus Courier on February 27, 2020. No specific public comment has been received in response to this public notice as of the preparation of this report. EII ■u _L -- Attachment A Resolution Recommending Council Approval of Text Amendments Exhibit 1 SmartCode Redlines Exhibit 2 Draft Text Amendment Ordinance Page 5