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09-28-2010 CC Rpt A13 COUNCIL AGENDA STAFF REPORT CITY ! RECEVED Meeting Date: September 28, 2010 �. ,:� 2010 SEP 2 I PH 4: 50 "0444/;.. : Public Hearing: 0 Discussion Item: OFFICE,' Cif CITY CLERK ra Consent item: ❑ CHINO HILLS C171(OF CHEN°1111M, September 21, 2010 TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: CITY MANAGER SUBJECT: DEVELOP A CODE AMENDMENT CLARIFYING REQUIREMENTS AND BIFURCATING PROCESS FOR GATE GUARDED NEIGHBORHOODS RECOMMENDATION: Direct staff to develop a development code amendrnent clarifying requirements and bifurcating- process for gate guarded neighborhoods. BACKGROUND/ANALYSIS At the August 24, 2010 City Council meeting, staff presented an analysis of the background, process, and requirements for gate guarded neighborhoods. Currently, the proceedings and procedures for a gate guarded neighborhood require that the application first be submitted to the Community Development Department, then be reviewed by the City's Project Review Committee, and the City Attorney. Once the application has been reviewed for aesthetic, social, health, safety, and economic impacts by all the affected departments, the Community Development Director shall make a recommendation to the City Council. The City Council reserves sole discretion to grant or deny an application. Along with the approval of the gate, the City Council shall also vacate the public use of the affected street(s). Unlike most development projects, gate guarded neighborhoods are not heard by the Planning Commission prior to City Council action. The current process requires that the applicant provide a gate guarded neighborhood plan, showing the area to be gated along with gate location, and compliance with setback and radius turnaround requirements. In addition to the gate guarded neighborhood plan, the applicant is also required to provide a financial plan, for the maintenance of the street(s), streetlights, and gates. If the gate guarded neighborhood plan requires the vacation of public streets, the applicant shall form a homeowners association (HOA) for the maintenance of the gated neighborhood, and a separate approval by the City Council shall be required. The gate guarded plan, and the formation of a HOA, requires time and expense for the applicant, similar to most development projects. However, the current process does not allow the applicant to receive public comments, as development projects would at a Planning Commission hearing, prior to City Council's action. j9j3 September 28, 2010 Page 2 SUBJECT: DEVELOP A CODE AMENDMENT CLARIFYING REQUIREMENTS AND BIFURCATING PROCESS FOR GATE GUARDED NEIGHBORHOODS At the August 24, 2010 City Council meeting, Council discussed amending the current proceedings and procedures to include a bifurcation process in which Planning Commission reviews the application prior to City Council review, which would allow the applicant the opportunity to present evidence, respond to public issues and concerns, and revise the proposal accordingly prior to City Council's action. As a result, Council directed staff to develop a code amendment to bifurcate the process to reduce time and expense for the applicant. The following procedures are recommended for amendment: PROPOSAL FROM A NEIGHBORHOOD WITH PUBLIC STREETS WITHOUT AN. EXISTING HOMEOWNERS ASSOCIATION A proposal from a neighborhood with public streets without an existing HOA shall submit a gate guarded neighborhood plan and a financial plan for review according to Municipal Code Chapter 16.88 Gate Guarded Neighborhoods. Once the plans are reviewed by the Project Review Committee and the City Attorney, the Community Development Director shall make a recommendation to the-Planning Commission.. The-Commission shall act by resolution to - recommend approval, approval with modifications, or denial of the application or resolution. Upon receipt of the Planning Commission resolution, the City Clerk shall set the matter for hearing before the City Council where the Council shall hear and take action upon the application or resolution. The Council shall act to approve, conditionally approve, or deny the application. If the Council approves the gate guarded neighborhood plan, then a request for the vacation of the public street shall be submitted. In order for a pubic street to become private, it is necessary for the city to vacate the street by resolution and execute a quitclaim deed for the street, so an entity can take possession of the now privately owned and maintained street. If the neighborhood does not have an existing HOA, then one shall be formed and legally incorporated and provide draft CC&Rs which include a financial plan, prior to the Council's action on the public street vacation. However, if the applicant prefers, subsequent to Planning Commission's resolution, the request for the gate guarded neighborhood plan and the public street vacation can be heard by the Council concurrently, although as separate actions, as long as a HOA has been legally incorporated and a draft CC&Rs has been provided. PROPOSAL FROM A NEIGHBORHOOD WITH PRIVATE STREETS WITH AN. EXISTING HOMEOWNERS ASSOCIATION, A proposal from a neighborhood with private streets with an existing HOA shall submit a request for gate guarded neighborhood plan and financial plan according to Municipal Code Chapter 16.88 Gate Guarded Neighborhoods. Section 16.88.020(B) currently requires a petition of support from at least 66 213 % of the signatures of property owners residing within the neighborhood. An amendment is recommended to require that the petition be approved by the HOA board, prior to submission, since the HOA will be responsible for maintenance of the street(s), streetlights and gate. Once the plans are reviewed by the Project Review Committee and the City Attorney, the Community Development Director shall make a September 28, 2010 Page 3 SUBJECT: DEVELOP A CODE AMENDMENT CLARIFYING REQUIREMENTS AND BIFURCATING PROCESS FOR GATE GUARDED NEIGHBORHOODS recommendation to the Planning Commission. The Commission shall act by resolution to recommend approval, approval with modifications, or denial of the application or resolution. Upon receipt of the Planning Commission resolution, the City Clerk shall set the matter for hearing before the City Council where the Council shall hear and take action upon the application or resolution. The Council shall act to approve, conditionally approve, or deny the application. If the Council approves the gate guarded neighborhood plan and financial plan, as a condition of approval, the applicant shall submit an amended CC&Rs, which incorporates the financial plan, to the Community Development Director, City Engineer, and City Attorney for review and approval prior to issuance of building permits of the gate system. The gate guarded neighborhood plan approval will not become effective until the final CC&Rs are approved. MINIMUM NUMBER OF HOMES-CONSTITUTING AGATE—GUARDED , NEIGHBORHOOD Council also discussed the possibility of requiring a minimum number of homes constituting a gate guarded neighborhood. The current code does not include a minimum standard. In reviewing the practical application of this proposed standard, staff considered maintenance costs and the minimum size of a potential neighborhood as criteria for review. If the minimum number of homes is based on the ability to cover costs associated with the maintenance of the gated area, it is important to note that costs for maintenance of the gated neighborhood may vary for each proposal depending on terrain, area required for gated area, manned gatehouse vs. automatic gates, landscaped island, etc. Therefore, it would be difficult to propose a minimum number based on potential costs. However, as part of the required financial plan, the applicant is currently required to demonstrate that the homeowners association is capable of financing the maintenance of the neighborhood. If the minimum standard is to address the design and/or size of the gated community, because each location is unique in size, terrain, aesthetics, etc., it is infeasible to establish a rational methodology to determine a minimum standard. Therefore, unless directed by Council, there will be no further analysis. REVIEW BY AFFECTED DEPARTMENTS:, This item has been reviewed by the City Attorney's Office. Respectfully submitted, Recommended by: 1, • Michael . Fleag r��7%/ Christine Kelly or City Manager Community Development Dire