AGENDA REPORT. SAN CLEMENTE CITY COUNCIL MEETING Meeting Date: August 18, 2015

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Agenda Item 1 A: AGENDA REPORT SAN CLEMENTE CITY COUNCIL MEETING Meeting Date: August 18, 2015 Approvals: City Manager ~ Dept. Hea~ Attorney Sr Finance '-=-,w,--.._ Department: Prepared By: Subject: Community Development Cecilia Gallardo-Daly, Community Development Di.rector ADOPTION OF AN ORDINANCE EXTENDING AN INTERIM URGENCY ORDINANCE ON THE PERMITTING OR ESTABLISHMENT IN RESIDENTIAL ZONES OF (1) SOBER LIVING HOMES AND (2) LARGE ALCOHOLISM OR DRUG ABUSE RECOVERY OR TREATMENT FACILITIES, SUBJECT TO REASONABLE ACCOMMODATION, TO ALLOW TIME FOR CONSIDERATION OF APPROPRIATE AMENDMENTS TO THE CITY MUNICIPAL CODE; AND A "REPORT OF THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE OF MEASURES TAKEN TO ALLEVIATE THE CONDITIONS PREVIOUSLY IDENTIFIED AND LEADING TO THE ADOPTION OF A MORA TOR/UM ON THE PERMITTING OR ESTABLISHMENT IN RESIDENTIAL ZONES (1) SOBER LIVING HOMES AND (2) LARGE ALCOHOLISM OR DRUG ABUSE RECOVERY OR TREATMENT FACILITIES, SUBJECT TO REASONABLE ACCOMMODATION, IN THE CITY(0RDINANCE No 1602)". Fiscal Impact: Approval of this item will not result in net city cost (discretionary general funding). Summary: Background: Discussion: Staff recommends that the Council issue the Report of the Council, adopt the Interim Urgency Ordinance extending the moratorium on the permitting or establishment in residential zones of (1) sober living homes and (2) large alcoholism or drug abuse recovery or treatment facilities, subject to reasonable accommodation, for 10-months and 15-days, adopt relevant findings, and approve a Notice of Exemption. On July 7, 2015, the City Council adopted Urgency Ordinance No. 1602, imposing a temporary moratorium on the permitting or establishment in residential zones of (1) sober living homes and (2) large alcoholism or drug abuse recovery or treatment facilities, subject to reasonable accommodation, to allow time for consideration of appropriate amendments to the City Municipal Code. By law, Ordinance No. 1602 could only be in effect for 45 days. The proposed Ordinance extends the moratorium for 10 months and 15 days. This would continue to put a "hold" on the permitting or establishment in residential zones of (1) sober living homes and (2) large alcoholism or drug abuse recovery or treatment facilities of more than 6 clients, subject to reasonable accommodation. This will allow the City time to analyze the impacts created by these types of uses, develop regulations that are tailored to the impacts, protect the community, and comply with federal and state fair housing laws. Over the last few months, the City has received an increasingly large number of complaints relating to neighborhood nuisances such as excessive noise, unauthorized construction, invasions of privacy, secondhand tobacco smoke, unauthorized disposal of medical waste, poor property maintenance, trash and debris, and illegal parking. The City investigation and follow-up on these complaints have shown that a large portion of these impacts coincide with a proliferation of sober living homes and Community Development Agenda Report 8-18-15 I 7 A-1

Agenda Report Page 2 alcoholism or drug abuse recovery or treatment facilities in residential zones. The City investigation has also revealed discrepancies in information submitted to state regulatory agencies relating to construction and occupancy of some of these facilities. We have found that facilities are lacking necessary permits or City licenses. In addition, the City's investigation has raised concerns about the welfare and safety of sober living home and alcoholism or drug abuse recovery or treatment facility residents relating to the maintenance and operation of the homes. The City has received information indicating that some treatment providers may lack the training or credentials necessary to provide treatment and support and may be illegally converting single-family homes and related structures into institutional structures operated without proper building and occupancy permits. Staff is concerned that the cumulative facilities and illegal buildings undermine the residential environment for sober living and recovery that state and federal laws are designed to further. Ongoing Planning Studies Staff has begun an ongoing process to conduct an orderly, comprehensive, and wellresearched assessment of the impacts related to sober living homes and large alcoholism or drug abuse recovery or treatment facilities in order to develop regulations tailored to the impacts and ensure reasonable regulation in compliance with federal and state fair housing laws. Staff has begun to evaluate the means of information sharing with Orange County Fire Authority, the Orange County Sheriffs Department, and the OC Health Department relating to code enforcement complaints, building and occupancy permits, and repeat citations. Staff will study and review better coordination and exchange of information between the City, state regulatory agencies, specifically the Department of Health Care Services and Department of Health Services, to determine which homes require licensing, and whether information provided to state licensing agencies is valid. Staff has consulted with other cities to determine their experience with sober living homes and large alcoholism or drug abuse recovery or treatment facilities in residential zones. Staff has been reviewing and monitoring the actions of the Cities of Costa Mesa and Newport Beach. Staff is also reviewing the provisions and policies of other cities with regard to sober living homes and large alcoholism or drug abuse recovery or treatment facilities in residential. Further, staff will reach out to other cities within the League of California Cities to see how cities throughout the State are handling the issue. In addition, together with legal counsel, staff will examine court rulings which may provide further guidance that we can use in crafting an appropriate ordinance. Staff will study and review potential amendments to the Municipal and Zoning Codes to re-establish appropriate regulations that are compatible with the intent of the City's residential zones. The study will include evaluating blending uses in single-family neighborhoods and not undermining the residential environment, or weaken the 8-18-15 I?A-2

Agenda Report Page 3 therapeutic and rehabilitative effects of residential neighborhoods for sober living and recovery that state and federal laws intended them to have. Studies will evaluate noise, traffic and parking impacts of these uses. We will study the special operational Characteristics of San Clemente facilities that apparently are operating as collective commercial uses, inconsistent with the intent of state and federal law that favors traditional single-family occupancies for group home rehabilitation. Staff will evaluate the accurate therapeutic information as it relates to potential reasonable accommodation requests. The research and assessment will also include what the potential issues may be resulting from potential amendments to the Municipal Code. Staff will evaluate the potential that continued proliferation and over-concentration of sober living homes and alcoholism or drug abuse recovery facilities on particular blocks or neighborhoods could create the institutionalizing effects that state and federal laws are designed to prevent. The ongoing studies will include evaluating the applicability of the City's business license and home occupation ordinances to these uses. Any revisions necessary to the Zoning Code will be considered by the Planning Commission. Upon conclusion of the Planning Commission public hearing process, the zoning text amendments will be forwarded to the City Council for consideration. Although the City receives complaints about similar impacts from other uses (for example, vacation rentals), the City has noted that - in contrast to sober living homes and alcoholism or drug abuse recovery or treatment facilities - the severity of the impacts from those other uses and the time and effort required to obtain code compliance are exponentially smaller. The City continues to track those complaints and their resolution during the period of this moratorium, and will have the opportunity to prosecute any outstanding violations and/or consider additional legislation regarding those uses as part of these ongoing studies. The City's existing zoning regulations do not adequately address the establishment of sober living homes and large alcoholism or drug abuse recovery or treatment facilities. The interim urgency ordinance is necessary to provide City staff time to study and assess various approaches to regulating these land uses and to present recommendations to the City Council. Recommended Action: STAFF RECOMMENDS THAT the City Council adopt an Interim Urgency Ordinance of the City Council of the City of San Clemente, California Under Government Code Section 65858 Extending a Temporary Moratorium on the Permitting or Establishment in Residential Zones of (1) Sober Living Homes and (2) large Alcoholism or Drug Abuse Recovery or Treatment Facilities, Subject to Reasonable Accommodation, to Allow Time for Consideration of Appropriate Amendments to the City Municipal Code; adopt the findings related thereto; adopt a Notice of Exemption with regard to the moratorium; and issue this Report of the City Council of the City of San Clemente of 8-18-15 I?A-3

Agenda Report Page4 Measures Taken to Alleviate the Conditions Previously Identified and Leading to the Adoption of a Moratorium on the Permitting or Establishment In Residential Zones of (1) Sober Living Homes and (2) Large Alcoholism or Drug Abuse Recovery or Treatment Facilities, Subject to Reasonable Accommodation, in the City (Ordinance No 1602). Attachments: INTERIM URGENCY ORDINANCE OF THE CITY OF SAN CLEMENTE EXTENDING THE TEMPORARY MORATORIUM ON PERMITTING OR ESTABLISHMENT IN RESIDENTIAL ZONES OF (1) SOBER LIVING HOMES AND (2) LARGE ALCOHOLISM OR DRUG ABUSE RECOVERY OR TREATMENT FACILITIES, SUBJECT TO REASONABLE ACCOMMODATION, TO ALLOW TIME FOR CONSIDERATION OF APPROPRIATE AMENDMENTS TO THE CITY MUNICIPAL CODE. Notification: Notification is required under Government Code Section 65858 and public notice was published in the Sun Post. 8-18-15 I 7 A-4

ORDINANCE NO. INTERIM URGENCY ORDINANCE OF THE CITY OF SAN CLEMENTE EXTENDING THE TEMPORARY MORA TORI UM ON PERMITTING OR ESTABLISHMENT IN RESIDENTIAL ZONES OF (1) SOBER LIVING HOMES AND (2) LARGE ALCOHOLISM OR DRUG ABUSE RECOVERY OR TREATMENT FACILITIES, SUBJECT TO REASONABLE ACCOMMODATION, TO ALLOW TIME FOR CONSIDERATION OF APPRQPRIATE AMENDMENTS TO THE CITY MUNICIPAL CODE WHEREAS, over the last few months, the City has received an increasingly large number of complaints relating to neighborhood nuisances such as excessive noise, unauthorized construction, invasions of privacy, secondhand tobacco smoke, unauthorized disposal of medical waste, poor property maintenance, trash and debris, and illegal parking; WHEREAS, City investigation and follow-up on these complaints has revealed that a large portion of these impacts coincide with a proliferation of sober living homes and alcoholism or drug abuse recovery or treatment facilities in residential zones; WHEREAS, City investigation has also revealed discrepancies in information submitted to state regulatory agencies relating to construction and occupancy of some of these facilities; WHEREAS, many of these sober living homes and facilities lack necessary City licenses and permits; WHEREAS, City investigations have also raised concerns about the welfare and safety of sober living home and alcoholism or drug abuse recovery or treatment facility residents relating to the maintenance and operation of these homes and facilities: While the City Code Enforcement, Planning, and Building Divisions, law enforcement, Finance and Administrative Services Department (business and home occupation licensing offices), and other departments have fully supported the therapeutic and rehabilitative goals and effects of these uses and in particular, the benefits of particular treatment in residential neighborhoods, the City has received information indicating that some treatmeht providers may lack the training or credentials necessary to provide such treatment and support, and may be illegally converting single-family homes and related structures into institutional structures operated without proper building and occupancy permits; WHEREAS, staff is concerned that these aggregate facilities and illegal buildings undermine the residential environment for sober living and recovery that state and federal laws are designed to further; WHEREAS, existing zoning regulations do not adequately address the establishment of sober living homes and large alcoholism or drug abuse recovery or treatment facilities; - 1-8-18-15 I?A-5

WHEREAS, an interim urgency ordinance became necessary to provide the City staff time to study and assess various approaches to regulating the subject land uses and to present recommendations to the City Council. Recommendations may include amendments to the City's Municipal Code addressing establishment of sober living homes and large alcoholism or drug abuse recovery or treatment facilities and compliance with state law, including appropriate review procedures; WHEREAS, without the moratorium, such transitory residential uses could possibly locate in close proximity to each other or operate as an integral facility or integral use so as to create an overconcentration of such uses and so further threaten the health, safety, and welfare of facility residents and their neighbors; WHEREAS, as a consequence, there is a current and immediate threat to the public health, safety and welfare if permits or entitlements for sober living homes and alcoholism or large drug abuse recovery or treatment facilities are issued, and such permits or entitlements could result in land uses and developments that conflict with amendments to the Municipal Code that may be adopted as a result of the study that the City intends to undertake; WHEREAS, the negative impacts of these facilities on neighborhoods and the potential risks to inhabitants of these facilities is of growing concern to the City, especially given the sudden and exponential growth in the number of residents' and occupants' complaints about property nuisances and illicit operations of these facilities in the City; WHEREAS, the adoption and immediate enactment of the moratorium ordinance and this ordinance are necessary for the preservation of the public health, safety, and welfare to prevent establishment of new uses and the expansion or modification of existing uses at locations that might conflict with and be inconsistent with the intended amendment to the Zoning Code; WHEREAS, minimizing incompatibility of land uses promotes orderly development, which is necessary to encourage quality neighborhoods; WHEREAS, this is a matter of importance to the entire City of San Clemente and is not directed at any particular property; WHEREAS, the City Council adopted Ordinance Number 1602 on 7 July, 2015 to establish the needed temporary moratorium; WHEREAS, the City has begun studying the issues related to these uses but has not yet completed its study and evaluation; and WHEREAS, Government Code section 65858(a) allows the City Council to extend the interim moratorium ordinance based on the current and immediate threats described above, which continue. NOW, THEREFORE, the City Council of the City of San Clemente, California, ordains as follows: - 2-8-18-15 I?A-6

Section 1. The recitals above are each incorporated by reference and adopted as findings of the City Council, including those relating to the urgency need forth is ordinance. Section 2. The moratorium established by Ordinance No. 1602 is extended for ten months and 15 days, as authorized by Government Code section 65858(a). Section 3. The City Council finds that this ordinance is not subject to the California Environmental Quality Act under California Code of Regulations, Title 14, Section 15060, subdivision (c)(2), because the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment nor under subdivision (c)(3) because the activity has no potential for resulting in physical change to the environment, directly or indirectly and so is not a project. Section 4. If any provision of this ordinance or its application to any person or circumstance is held invalid, such invalidity has no effect on other provisions or applications of the ordinance that can be given effect without the invalid provision or application, and to this end the provisions of this ordinance are severable. The City Council hereby declares that it would have adopted this ordinance irrespective of the invalidity of any particular portion thereof. Section 5. This ordinance is declared an urgency measure necessary for the immediate protection and preservation of the public peace, health, safety, and welfare for the reasons stated in the above recitals (incorporated by Section 1 ), and it takes effect immediately on adoption by the City Council, by at least a four-fifths vote, and signing by the City Clerk. The moratorium remains in effect for ten months and 15 days after the initial 45-day period (for a total of one year from the 7 July 2015 adoption of Ordinance 1602) unless the City Council extends the moratorium under Government Code section 65858. Ten days before the extended moratorium expires, the City Council shall issue a written report describing the measures that the City has taken to address the conditions. that led to the adoption of this ordinance. [Signatures on following page] - 3-8-18-15 I 7 A-7

APPROVED AND ADOPTED this_ day of August, 2015. ATIEST: Joanne Baade, City Clerk City of San Clemente Chris Hamm, Mayor City of San Clemente STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF SAN CLEMENTE ) ) ss. ) I, JOANNE BAADE, City Clerk of the City of San Clemente, California, hereby certify that Urgency Ordinance No. _, the reading in full thereof unanimously waived, was duly passed and adopted at a regular meeting of the City Council held on the_ day of August, 2015, by the following vote: AYES: NOES: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this_ day of August, 2015. Joanne Baade, City Clerk City of San Clemente APPROVED AS TO FORM: Scott C. Smith, City Attorney City of San Clemente - 4-8-18-15 I?A-8