HomeMy WebLinkAbout19 - Report on Transitory Residential Uses MoratoriumCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 19
(May 22, 2007)
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Robin Clauson, City Attorney
Ext. 3131, rclauson @ city.newport- beach.ca.us
Aaron Harp, Assistant City Attorney
Ext. 3131, ahamt &city.newport- beach.ca.us
SUBJECT: REPORT ON THE ADOPTION OF AN INTERIM URGENCY
ORDINANCE ESTABLISHING A TEMPORARY MORATORIUM
ON THE ESTABLISHMENT AND OPERATION OF NEW
RESIDENTIAL USES THAT ARE TRANSITORY IN NATURE AS
WELL AS THE ISSUANCE OF NEW SHORT -TERM LODGING
PERMITS IN ALL RESIDENTIAL ZONING DISTRICTS OF THE
CITY
RECOMMENDATION:
Receive and file the report.
BACKGROUND:
On April 24, 2007 after conducting a noticed public hearing, the City Council of the City
of Newport Beach enacted Ordinance No. 2007 -8 an interim urgency ordinance
adopting a temporary forty -five (45) day moratorium on the establishment and operation
of new residential uses that are transitory in nature such as parolee - probationer homes,
safe houses, unlicensed residential care facilities and residential care facilities, general,
as well as the issuance of new short-term lodging permits in all residential zoning
districts of the City.
Pursuant to Government Code Section 65858, ten (10) days prior to the expiration of
the moratorium, the City Council must issue a written report describing the measures
taken to alleviate the condition which led to the adoption of the moratorium.
Accordingly, Staff has prepared a report in satisfaction of the requirements of Section
65858.
Report on Urgency Ordinance Regarding
Uses in Residential Zoning Districts
May 22, 2007
Page 2
PUBLIC NOTICE:
Public notice was provided in accordance with all applicable laws.
Prepared by:
, _ ff
Aaron C. Harp,
Assistant City Attorney
Submitted by:
Robin Clauson,
City Attorney
Attachments: Report on Urgency Ordinance Regarding Uses in Residential
Zoning Districts
REPORT OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH ON THE INTERIM URGENCY
ORDINANCE ADOPTING A TEMPORARY MORATORIUM
ON THE ESTABLISHMENT AND OPERATION OF NEW
RESIDENTIAL USES THAT ARE TRANSITORY IN
NATURE SUCH AS PAROLEE - PROBATIONER HOMES,
SAFE HOUSES, UNLICENSED RESIDENTIAL CARE
FACILITIES AND RESIDENTIAL CARE FACILITIES,
GENERAL, AS WELL AS THE ISSUANCE OF NEW
SHORT -TERM LODGING PERMITS IN ALL RESIDENTIAL
ZONING DISTRICTS OF THE CITY
Introduction
On April 24, 2007 after conducting a noticed public hearing, the City
Council of the City of Newport Beach enacted Ordinance No. 2007 -8 an interim
urgency ordinance adopting a temporary forty-five (45) day moratorium on the
establishment and operation of new residential uses that are transitory in nature
such as parolee - probationer homes, safe houses, unlicensed residential care
facilities and residential care facilities, general, as well as the issuance of new
short-term lodging permits in all residential zoning districts of the City.
Pursuant to Government Code Section 65858, ten (10) days prior to the
expiration of the moratorium, the City Council must issue a written report
describing the measures taken to alleviate the condition which led to the adoption
of the moratorium. Accordingly, the City has prepared this report in satisfaction
of the requirements of Section 65858.
II. Background to the Adoption of the Interim Urgency Ordinance
A. Group Residential Use Regulations.
Prior to March 1997, the City's Zoning Code did not address group
residential uses in residential districts. There were few definitions and
regulations that could be directly applied to uses of this type. In 1997, the City
introduced Zoning Code amendments which adopted a comprehensive land use
classification system. This included classifications intended to address the state
preemptions on City regulation of residential care facilities and group homes.
Residential Care, General and Limited and Group Residential classifications
were added to the Zoning Code, and a use permit requirement was established
for Residential Care, General uses. Group Residential uses were prohibited in
all residential zones.
In October, 2004, the City again updated its Zoning Code in an attempt to
improve City restrictions on residential care facilities and reflect changes in the
federal case law affecting cities' ability to regulate these facilities. After a nine -
month period of public hearings and input from many residents of Newport Beach
and local recovery facility operators, the Zoning Code was revised to prohibit
Residential Care, General facilities from locating in any R -1 district. The
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amendment also replaced the use permit process with a Federal Exception
Permit (FEP) process for Residential Care, General and established a definition
of the term "campus."
B. Short-tern Lodging Regulations.
Prior to 1992, the City's Municipal Code did not address short-term
lodging uses. In 1992, the City Council first adopted the Short-term Lodging
Ordinance which added Chapter 5.95 to the Municipal Code. Chapter 5.95 was
added to the Municipal Code in an effort to regulate the long- standing practice of
many property owners to rent dwelling units on a weekly basis in the summer
and on a monthly basis for the remainder of the year.
From 1992 to 2004, most of the short-term lodging permits were issued for
dwelling units in the R1.5, R -2 and MFR zones which are residential uses with
relatively high densities. In 2004, staff became concerned that the issuance of
permits for dwelling units in R -1 zones could change the character of those
neighborhoods. Based thereon, the City Council adopted an ordinance
amending Chapter 5.95 to prohibit the issuance of new permits subsequent to
June 1, 2004 for dwelling units in areas zoned R -1 or the equivalent. The
amendment did not impact existing permits.
C. Moratorium.
In 2006, the City of Newport Beach adopted a new General Plan and the
voters adopted a new Land Use Plan. The General Plan includes a vision
statement that provides a framework or vision for the City. The first vision is to
Preserve Community Character and provides that "We have preserved our
character as a beautiful, unique residential community with diverse upland and
coastal neighborhoods. We value our colorful past, the quality of life, and our
community bonds. The successful balancing of the needs of residents,
businesses and visitors has been accomplished with the recognition that Newport
Beach is primarily a residential community."
After adopting the new General Plan, the City received evidence that the
number of group residential uses located in the residential neighborhoods was
increasing. These transitory group residential uses operate more like institutional
and boarding housing uses rather than as single housekeeping units. Most of
the group residential uses that are operating in the City have concentrated in
Residential Zoning Districts R1.5, R -2 and MFR.
This change from traditional residential uses where people live as single
housekeeping units to institutional /business uses in residentially zoned areas is
changing the unique character and balance of Newport Beach's residential
neighborhoods, violating the General Plan's vision that seeks to retain Newport
Beach as primarily a residential community, and in many cases placing
incompatible uses in residential neighborhoods, contrary to the policies in the
City's Land Use Element (Policies LU 1.1, LU 5.1.1, LU 6.2.6 and LU 6.2.7).
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On January 23, 2007, the City Council adopted Resolution No. 2007 -5
forming the City Council- Citizens Advisory Committee on Intense Residential
Occupancy. The City Council determined that formation of the committee was
necessary because of the adverse impact the group residential uses were having
on residential neighborhoods. Specifically, the City Council found that when
these facilities are poorly managed, they can operate more like an intense
institutional use and create adverse impacts inconsistent with residential
neighborhoods such as parking problems, excessive delivery times and
durations, nuisances such as excessive noise, obvious business operations over
and above those authorized for residential uses, second hand smoke and other
impacts.
On February 13, 2007, the City Council adopted Resolution No. 2007 -10
initiating an amendment to Title 20 of the Newport Beach Municipal Code to
revise land use classifications and definitions related to residential care facilities.
Resolution No. 2007 -10 was adopted based on concerns that the Municipal
Code's regulation of residential care facilities did not conform with State law.
On April 24, 2007, the City Council adopted Resolution No. 2007 -8 which
imposed a moratorium on the establishment and operation of new group
residential uses and the issuance of new short -term lodging permits. The City
Council adopted Resolution No. 2007 -8 based on information provided by
citizens of Newport Beach to staff and at the Intense Residential Occupancy
meetings. Specifically, the citizens of Newport Beach expressed significant
concerns regarding the impacts that a proliferation of parolee /probationer,
transient, group, non - residential, and commercial uses has on the community,
including, but not limited to, impacts on traffic and parking, excessive delivery
times and durations, the commercial use of public property, commercial and /or
institutional services offered in private residences, more frequent trash collection,
daily arrival of staff who live off -site, loss of affordable rental housing, violation of
boarding house and illegal dwelling unit regulations contained in the Municipal
Code, obvious business operations in residences, secondhand smoke, use of
illegal drugs, and nuisance behaviors such as excessive noise, litter, loud and
offensive language and public drunkenness.
In addition, the City Council adopted Resolution No. 2007 -8 because the
number of vacation rentals in the City, which are regulated by requiring a short -
term lodging permit under Chapter 5.95, had increased in recent years. At the
time Resolution No. 2007 -8 was adopted, the City had issued short -term lodging
permits for approximately 801 residential units on 527 parcels to use as transient
rentals. Most of the short -term lodging permits are issued to owners of residential
properties located in Residential Zoning Districts R1.5, R.2, and MFR.
The City Council found that a moratorium on the issuance of short -term
lodging permits was necessary so that the City could analyze the impacts of
these uses and determine whether the current regulations adequately addressed
these impacts.
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III. Measures Taken Since the Adoption of the Interim Urgency
Ordinance
A. Questionnaire Distributed by City.
1. Background.
To help Staff determine the impact of group residential and short -tern
lodging uses, the City Attorney's Office distributed a questionnaire to residents
residing in the following blocks of the City:
• Location One: The 1100 and 1200 blocks of West Balboa
and West Bay Avenue and 1100 block of West Ocean Front;
• Location Two: The central portions of the 1800 block of West
Ocean Front and West Balboa Blvd;
• Location Three: Portions of the 100 blocks of 38th and one
side of 39th Street; and
• Location Four: The northern portions of Topaz, Agate, and
Opal on Balboa Island.
The four locations were selected because staff determined that the best
way to determine the impacts of the group residential and short -term lodging
uses was to pick specific areas where there is high density of these uses. The
first three locations were selected because they had both high density of
recovery facilities and short -tern rentals, and residents there were likely to be in
a good position to offer insight on the relative impacts of the different types of
uses. The Balboa Island location was selected because it has a number of short -
term rentals, but no known recovery facilities. Residents of Balboa Island were in
a position to offer first -hand accounts of the impacts of short -term renters in a
different residential setting.
When residents expressed a desire to have the questionnaire more widely
available, the questionnaire was posted on the City website, additional copies
were made available through City offices, multiple copies were delivered or
distributed to residents, and the deadline for responding to the questionnaire was
extended. Questionnaires, letters, emails and phone calls from residents from
additional streets in West and Central Newport, Newport Heights and Santa Ana
Heights were sent to the City as well. As of the deadline of 4:00 PM Monday,
May 14, of the nearly 400 questionnaires distributed, 47 were completed and
returned. Although questionnaires were distributed to recovery facilities in
Locations One, Two and Three as well, no response was received from any
recovery facility as of the May 14th deadline.
Both the Planning Department and the City Attorney's Office appreciate
the valuable time the residents took to fill out these lengthy and detailed forns.
The information submitted by residents in this format appears to be fact- based,
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and is credible. A large percentage of the questionnaires were returned by
persons who have not communicated with the City on these issues before.
2. Summary of Information Contained in Questionnaires.
Based on the questionnaires, a distinct pattern emerged in Locations One,
Two and Three regarding the impact of the group residential uses. Many
licensed and unlicensed recovery facilities in those locations appear to be having
a daily impact on parking and traffic in the area, either from cars and vans
illegally parking in the alleys behind the homes on a daily basis, or from vans and
other vehicles stopping in a traffic lane in the street to pick up residents. Based
on the personal observations of their neighbors, many of these facilities use their
garage spaces for uses other than parking. This appears to result in a dearth of
passenger loading areas, and regular short-term illegal alley parking.
The group residential uses were also regularly reported as producing
substantially more garbage than the surrounding residential uses, because of the
density of the population. One facility is reportedly generating one commercial
dumpster pickup daily, and another generates two commercial dumpsters three
times per week.
Smoking by facility residents of group residential uses was highlighted. In
fact, in one questionnaire a respondent reported that "[The residents] all seem to
smoke ... continually and unrelentingly." Since this particular respondent has
facilities in close proximity on either side of his house, the smoke entering his
house has forced him to leave windows closed that normally would remain open.
This situation, as well as litter caused by cigarette butts regularly thrown on their
property, was reported by most immediate neighbors of recovery facilities
answering the questionnaires. Many not -so- immediate neighbors reported
regular cigarette butt litter attributable to the facilities on their property as well.
In addition, frequent exposure to loud arguments and verbal exchanges
(between residents, and between residents and supervising staff), foul language,
and physical altercations between facility residents was also widely reported by
those living near residential recovery facilities. In most locations, the most
objectionable sustained noise was during the early morning, day and evening
hours. With the exception of periodic medical emergency or police calls
generated by one recovery facility, the majority (but not all) of recovery facilities
were comparatively quiet late at night.
The impacts of overconcentration were not addressed in the questionnaire
because many were already known, but many residents commented on the
problems of overconcentration. One resident in Location One noted that he was
surrounded by recovery facilities on all four sides. A resident in Location Three
noted that there were six recovery facilities in his immediate vicinity, and only five
owner - occupied homes in the 100 block of 39th Street.
Residents responding to questionnaires noted that they had informed
recovery facility managers regarding these conditions; however, this did not
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generally result in long -term improvement of the situation. While most (but not
all) residents who complained to recovery facility staff or management were told
the problem would be addressed, the problem behaviors either continued or were
repeated by new residents after a brief period of improvement.
By contrast, the major complaint against renters of short-term occupancies
was late -night noise. A majority of residents in Locations One and Three who
addressed short-term rental uses characterized the renters as groups who came
to the beach for a week of partying. Most of these residents also reported that
the short-term rentals of these properties were managed by property
management or real estate agencies. A number of residents reported that calls
to the short-term rentals' property management agencies did not produce any
improvement, and that the property management agencies were unresponsive to
resident complaints. The quality of the property owner or property manager
oversight and responsiveness to neighbor complaints appears to have significant
impact on the impacts short-term rentals have in a neighborhood.
Some residents at Location Two stated that they lived near short-term
rental units that were mainly rented to families, and these residents reported a
reduced intensity of impacts that could be dealt with by direct contact with the
renters. Illegal parking in the alley and late evening parties were reported at
these locations, but ceased when residents drew the renters' attention to the
neighborhood impacts or reported incidents to property managers.
The property owners, property managers and residents in Location Four,
on Balboa Island, reported a completely different situation. Not one of the 12
completed questionnaires received from Balboa Island produced a complaint
about short-term renters.
In general, the summer renters choosing to rent on Balboa Island were
described as having no negative impact on the surrounding neighborhood. More
widespread complaints from Balboa Island were impacts from construction
activity, long -term parking by passengers of the Catalina Flyer, noise from
commercial party boats in the harbor, and the daily summer pickups and drop -
offs of Junior Lifeguards.
3. Impact by Location.
The following is a more detailed look at the case studies at each location,
and selected quotes from questionnaire respondents in that area:
(i) Location One: the 1100 and 1200 blocks of West Balboa
and West Bay Avenue and 1100 block of West Ocean
Front
U.
RESIDENTIAL RECOVERY FACILITIES
Staff and Services
• Group residential uses appear to have on -site staff as well as staff that
appeared to arrive daily from offsite at the licensed facilities. No staff were
identified in the questionnaires related to unlicensed facilities. One person
noted that "[Group residential staff] are quick to respond (to complaints),
but changes are only temporary ... "
Parking and Traffic
• At one location (1216 W. Balboa Blvd.), neighbors reported that illegal
parking in the alley was a daily occurrence, partly due to the fact that the
garage had been converted to other uses. A neighbor who complained to
this facility's management about early morning noise from residents being
loaded into vans in the alley got quick response from the facility's
management. The van loading functions were moved to the front of the
facility, on Balboa Blvd. However, other neighbors now report that the
vans periodically block traffic lanes adjacent to the facility while loading
residents on Balboa Blvd.
• The pattern of illegal vehicle parking in the alley was reported at two other
facilities in the Location One case study area.
Noise
• Gathering outside, talking loudly, yelling, and/or arguing with other
residents or staff, extensive cell phone conversations in the alleys, and
vulgar language. Most respondents from Location One described the
noise level as "high," and either reported that the noise went on day and
night, or that it began at 7:00 AM and tapered off at 11:00 PM.
Trash
• Neighbors described the amount of trash generated at all recovery
facilities in Location One as substantially in excess of that generated by
surrounding residential uses. One neighbor reported daily commercial
trash pickup at 1216 West Balboa.
Smoking
• All respondents in Location One reported that residents at every recovery
facility smoked, that cigarette butts were thrown on their property ( "on an
hourly basis," one resident said) and all but two reported that smoke from
the recovery facilities entered their properties.
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• Most residents reported that they and the members of their households
were non - smokers, and found the second -hand smoke very bothersome.
Even the one Location One respondent who stated that a member of his
household smoked objected to the volume of smoke entering his house
from the neighboring recovery facility. A number of neighbors keep their
windows shut as a result.
• One resident found smoldering cigarette butts on his property near the gas
meter which he attributed to residents of the recovery facility next door.
Another reported a fire had occurred at the 1216 West Balboa recovery
facility and expressed concern for the safety of the 29 recovery facility
residents.
Resident Conduct
• Residents objected to vulgar language, inappropriate attention to female
neighbors, and recovery facility residents with apparent unstructured time
wandering unsupervised throughout the immediate neighborhood.
• One neighbor reported being approached by persons still under the
influence who were seeking a recovery facility. Another reported a late
night ambulance call after a recovery facility resident overdosed.
Crime
• One resident discovered recovery facility residents smoking pot on his
property.
Other
• Another resident reported that when he asked a recovery facility manager
where he was taking a plate of food, the recovery facility manager told him
that one of the former recovery facility clients had relapsed and had been
removed from the recovery facility. Since the former facility client was
from out of the area and had no resources, he was living in a Newport
Beach park nearby.
SHORT -TERM OCCUPANCIES
Noise and Resident Conduct
• Respondents at Location One addressing short -term occupancies
described the noise from the vacation rentals near them as worse than the
noise at the recovery facilities, and described the property management
agency managing the property as unresponsive. Vacation rental noise
appeared to offend mainly in the evening and late -night hours.
E.
• One neighbor noted that, for his property, rental property residents
returning home late at night after area bars closed created more intrusive
late -night disruptions than recovery facilities.
Parking — some issues reported but not described.
Trash - in excess of that produced by surrounding long -term residents.
OTHER COMMERCIAL USES IN NEIGHBORHOOD
• Several questionnaire respondents from this area reported that they
worked from home. No complaints have been received by the City about
the impact of the respondents' commercial activities in their residential
neighborhood. Therefore, it is reasonable to assume that these business
activities are being conducted without external impacts on the surrounding
residential neighborhood, as contemplated by the City's home occupation
ordinance.
(ii.) Location Two: the 1800 block of West Ocean
Front and West Balboa Blvd.
RESIDENTIAL RECOVERY FACILITY
Staff and Services
• Staff lives onsite at this recovery facility, and more staff arrives daily,
including an employee who has described herself to neighbors as the
receptionist, and a house manager. The exact number of staff is
unknown. However, neighbors report that large numbers of persons
(status unknown) either are brought to the recovery facility, or return to the
recovery facility, each morning.
• Office functions appear extensive, based on resident - reported daily visits
from UPS. Fedex deliveries are reported one to two times daily. A
neighboring resident interviewed the block's regular mailman, who
reported that this recovery facility received so much mail that he made a
daily separate trip in the morning just to deliver this facility's mail, and
returned later in the afternoon with the rest of the route's mail deliveries.
• Southern California Produce delivers food two times a week, and Sysco
delivers food to the recovery facility two times a week.
• Laundry and linens are taken away from and returned to the recovery
facility by a commercial laundry service.
• Because of shortage of onsite parking (three onsite parking spaces),
delivery and service vehicles park illegally in the alley behind the facility.
Massage services appear to be provided onsite, and an employee
identified as a cook lives onsite.
Parking and Traffic
• Parking and traffic infractions from commercial service pickups and
deliveries are detailed above, and residents emphasized that they
generally at least partially block traffic.
• Residents, and /or staff are brought to and from the site more than once a
day in vans. Some vans park onsite, some park illegally in the alley
behind the house on a short-term basis while loading and unloading
individuals. One neighbor reported six vehicles associated with the
recovery facility parking onsite each day. Staff appear to park on adjacent
streets and walk to the recovery facility as well.
Noise
• "It's a din," one resident reported.
from the recovery facility can he
meetings. Noise begins at 7:30 AM
10:00 PM.
Residents at least two houses away
r the morning roll call and evening
or 8:00 AM and continues until around
• During the day, the movement of the recovery facilities occupants up and
down the exterior stairs was described as "constant." During a one -hour
period, a neighbor counted 151 trips made up and down the recovery
facility stairs by its residents.
• Residents describe regular Friday night meetings at the recovery facility,
with loud applause, stomping of feet and yelling.
• One next -door neighbor provided photos of the interior of their family's
house, with six -inch soundproofing material installed where windows and
doors adjacent to the recovery facility were located.
Trash
• Waste Management performs commercial trash pickups, removing trash
from two full -sized dumpsters three times a week.
Smoking
Complaints about smoking from this location have been ongoing for at
least the past four years. The facility has apparently attempted to address
the complaints by not allowing smoking outside on the facility's premises,
but residents still report daily second -hand smoke and cigarette butts
generated by the recovery facility's residents and staff. Immediately
adjacent neighbors and more distant downwind neighbors report that they
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keep their windows on the recovery facility's side of the building shut, to
minimize intrusions from smoke and noise. Smoking on the beach by
recovery facility residents is also reported.
Resident Conduct
• Neighbors report that the management of this recovery facility appears to
be making an effort to improve the recovery facility's relationship with the
surrounding neighborhood. Management has recently escorted recovery
facility's residents throughout the neighborhood picking up trash, and
cigarette butts are picked up upon neighbor request.
• Neighbors report regular use of audible profanity, usually directed at
others within the recovery facility. Neighbors feel the homes immediately
next door to the recovery facility have become next to uninhabitable, and
have not attempted to rent them. The only full -time resident of the
oceanfront homes immediately adjacent to the recovery facility does not
use the door adjacent to the recovery facility, but has entered through a
first -story window on the other side of the building for at least three years.
Crime
• On May 4, 2007, residents of the 1900 block of West Ocean Front had to
call for police assistance when a recovery facility resident ran from the
facility, smashed a patio table at one residence in the 1900 block, and
threw a table leg at the window of the reporting resident's property. It is
unknown at this time whether the police were able to locate the recovery
facility resident.
SHORT -TERM OCCUPANCIES
Staff and Services
• Cleaning services arrive once a week for a few hours during weekly tenant
shift. Cleaning staff park legally on rental facilities' onsite parking and do
not block traffic.
Noise, Parking and Resident Conduct
• While there were several short -term rentals on the 1800 block, long -term
residents report they produce comparatively minor impacts. At one
recovery facility, new weekly renters temporarily block alley access during
unloading every week, but do not repeat the pattern when told by
neighbors that this is not an acceptable practice. Complaints about
nighttime gathering noise have been handled promptly by the property
management agency or personal contacts by neighbors.
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• On the 1900 block, by contrast, a resident stated that property
management firms have been at best "grudgingly responsive" to
complaints about noise, trash and parking at two short-term rental
locations near his property. As this resident described it, `Each Saturday
in the summer 2 noisy, raucous groups of strangers move into each short-
term facility to party for a week." The resident also reports that at least
three to four times per week, weekly renters park in the alley or behind
the garages of long -term residents, blocking resident egress and traffic.
Second hand smoke and some cigarette butt litter were also reported on
the 1900 block.
OTHER COMMERCIAL USES
• None reported, but neighbors who were asked said they had no impacts
from use of the beach and sidewalk in their immediate vicinity for City
recreation camps and activities.
(iii.) Location Three: 38th and 39th Streets
RESIDENTIAL RECOVERY FACILITIES
Staff and Services
• Some recovery facilities have staff living onsite, some do not. In two
locations, staff has been responsive to neighbor complaints. In two
others, staff has been notably unresponsive.
• Transportation services via recovery facility vehicles appear to be
provided at almost all recovery facilities.
• Onsite services provided at three recovery facilities include daily cleaning
services.
Parking and Traffic
• One accident has been attributed to a recovery facility s van blocking
traffic on 39th Street while dropping or picking up recovery facility
residents.
• Traffic blockages on 39th Street due to recovery facility vehicles stopping
in front of their facilities were reported to be frequent.
• Residents report that at an adjacent sober living facility, as many as 10
vehicles can be associated with the residence (which has two onsite
parking spaces) at any given time.
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Noise
Reports of noise from the recovery facilities varied, depending on the
facility operators. Two facilities on 39th Street appeared to be particularly
egregious in the amount of noise and profanity used by its residents, and
in the late hours such noise is reported. Loud arguments and yelling
between recovery facility residents was also reported.
Trash
Trash produced by the recovery facilities was generally reported to be
extensive by all residents responding in this location, and the high number
of resulting flies was mentioned more than once.
Smoking
• Smoking was reported to be almost universal at the recovery facilities.
One resident reported counting 25 individuals on a recovery facility
balcony smoking at one time. The same resident reports that he found a
burning AA 12 -step book in his trash can.
• Another (non- smoking) resident reported being asked repeatedly for
cigarettes and once for beer by recovery facility residents.
• Windows are reportedly kept closed, and some neighbors do not use their
patios because of smoke and noise.
Resident Conduct
• Conduct varies according to recovery facility. Two recovery facilities were
identified as having residents with consistent problem behaviors.
Recovery facilities which neighbors had fewer objections to also had their
share of complaints about loud profanity.
Crime
One resident reported finding syringes and other drug paraphernalia in the
side yard between his property and the sober living facility next door, as
well as witnessing what he believed were drug sales in the alley behind
that same recovery facility. That resident also personally witnessed a
resident at another recovery facility on 39th Street exposing himself; the
offending party was removed from the facility when the resident reported
the behavior to the recovery facility's management.
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SHORT -TERM OCCUPANCIES
Noise and Resident Conduct
• The main impacts reported for short-term occupancies in Location Three
were that two nearby properties were being used as short-term rentals, an
excessive amount of noise was produced by parties at those locations,
and the property management company in control of those properties "will
not respond to noise complaints."
(iv.) Location Four: Balboa Island (portions of Opal,
Agate and Topaz)
SHORT -TERM OCCUPANCIES
No Impacts Reported
• Of the twelve questionnaire responses received from Balboa Island by the
deadline, there was not one complaint about short-term renters.
• Residents, property owners and property management firms were
consistent in their message that no negative impacts were generated on
Balboa Island from short-term renters.
• Noise produced by short-term renters was described as anything from
nonexistent to "music, conversation and laughter."
• Any complaints, residents reported, were promptly handled by the owner
or property management firm to the complainant's satisfaction.
• Cleaning and maintenance services and parking availability were
described as similar to that used at surrounding long -term residences.
OTHER COMMERCIAL USES
Noise, Traffic and Parking
• Questionnaire respondents had a number of complaints about other
commercial impacts: traffic and noise issues associated with new home
construction on the island, passengers on the Catalina Flyer parking their
cars on the island and leaving them there up to a week, parents of Junior
Lifeguards dropping off and picking up their children, and noise from
commercial dinner cruise yachts in Newport Harbor.
B. Disturbance Advisement Cards.
During 2006, the Newport Beach Police Department distributed 501
disturbance advisement cards based on loud parties at residences in the City.
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Thirty of these cards were distributed to properties that have short-term lodging
permits (of the 30, 23 were distributed from May through September).
C. Expert Analysis of Group Residential Care Facilities.
As part of the City's review of the group residential care facilities, the City
has retained Dr. Michael Gales to prepare a report analyzing what services are a
necessary component of recovery from addiction to alcohol and/or drugs, what
reasonable accommodations are necessary for the recovery from these type of
addictions and what policies and procedures are implemented by well run
facilities. Staff will present Dr. Gales' report regarding these matters to the City
Council as soon as it is available.
D. Regulation of Group Residential Uses.
1. Identification of Group Residential Uses.
Currently, the total number of known licensed alcohol and drug recovery
and treatment facilities and sober living homes is 73 units on 34 parcels (i.e.
Licensed Residential Treatment Facilities = 48 units on 18 parcels and Sober
Living Facilities = 25 units on 18 parcels.) The majority of these group residential
facilities are located in the area adjacent to the beach from the Santa Ana River
Jetty to the Balboa Pier. Staff is in the process of investigating whether additional
group residential facilities are located in the City. (A map showing the location of
the parcels identified as having group residential uses is attached hereto as
Exhibit A.)
2. Proposed Regulation of Group Residential Uses.
To assist the City Attorney in analyzing the regulation of group residential
uses, the City Attorney's office retained Polly Marshall of Goldfarb Lipman, LLP,
to conduct analysis of the current regulation of group residential uses and to
propose changes to the regulations. Her memorandum and proposed changes
to the current regulations is attached hereto as Exhibit B.
3. Moratorium.
Given the likelihood that additional uses will seek to be established prior to
the adoption of regulations, the nature of the impacts caused by group residential
uses, and the need for Planning Commission review, the City Attorney
recommends that the City Council extend the moratorium for five months and
direct staff to prepare an ordinance for consideration by the Planning
Commission by the second Planning Commission meeting in June.
15
E. Regulation of Short-Term Lodging Uses.
1. Identification of Short-Term Lodging Uses.
Currently, the City has issued short-term lodging permits for approximately
801 residential units on 527 parcels to use as transient rentals. The majority of
the short-term lodging permits have been issued to owners of properties located
in the area adjacent to the beach from the Santa Ana River Jetty to the Wedge
and on Balboa Island. (A map showing the location of the parcels identified as
having short-term lodging permits is attached hereto as Exhibit C.)
Based on information obtained by staff and interviews with Mr. Craig
Batley of Burr White Realty, it appears there have been significant changes in the
short-term lodging rental business since the original regulations were adopted in
1992. First, while the majority of short-term rentals are still offered for rental
during the summer months and on a month -to -month basis the remainder of the
year, many short-term rental properties are now offered for short-term lodging
purposes year round. This decreases the number of month -to -month rentals in
non - summer months and increases the number of weekly rentals.
The peak periods for short-term lodging purposes still encompasses the
summer months from the Friday before Memorial Day through Labor Day.
However, there has been an increasing demand for short-term rentals throughout
the year especially during the following time periods: Thanksgiving week; the
last two weeks of December through the first week in January; and March
through April. In recent years, the peak periods have expanded to cover the
entire months of March and April due to the fluctuation in the scheduling of spring
break by schools.
In addition, while many individual property owners still manage their own
short-term rental properties, the rental market for short-term lodging uses is now
dominated by property management companies. for instance, Burr White Realty
reports that it currently manages approximately 200 properties that are offered
for short-term lodging uses.
The following information on the process of short-term rental management
was reported by Mr. Batley. Through the use of agreements with the owners,
Burr White Realty obtains exclusive use of the property for fixed periods of time.
The company then markets the properties based on the maximum occupancy for
the property, which is set by the company based on the number of beds
available, location, and amenities.
The short-term lodging agreement entered into by Burr White with the
short-term renters requires a substantial deposit to ensure that the person
complies with the terms of the agreement, the property is not damaged, and fines
for violations of the Newport Beach Municipal Code are paid. The terms of the
agreement require the short-term renter to disclose who will be occupying the
property, prohibit the sole occupants of the premises from being under the age of
21, prohibit smoking inside the residence, prohibit pets, limit the number of
16
guests that can be at the property during the day to three times the bed limit,
regulate parking at the premises, prohibit the blocking of garages, prohibit the
disturbance of neighboring property owners and other nuisances, and prohibit the
violation of any laws, including the Newport Beach Municipal Code.
At Burr White, the person that executes the rental agreement is required
to check -in at the office. At check -in, the person is reportedly informed of City
regulations and procedures related to loud parties, noise, parking, and trash
pickup. According to Mr. Batley, if a guest violates the terms of the short-term
rental agreement, the agency takes action to have them removed from the
property.
Many of the residences offered as short-term rentals are reported to be
rented to repeat customers that stay at the residences several times a year or
annually. The company also maintains a database of its past customers and
references whether there were any issues related to the customer based on their
previous stay. If there were problems, the company states that it analyzes
whether the company should enter into another agreement with that person or
what conditions should be added to the agreement.
2. Current Regulation of Short -Term Lodging Uses.
Currently, the City regulates short-term lodging through the issuance of
short-term lodging permits pursuant to Chapter 5.95. Every owner of a property
who wishes to rent their property for a short-term use (i.e. 30 days or less) is
required to have a short-term lodging permit. An owner may retain an agent or a
representative to comply with the requirements of Chapter 5.95; however, the
permit may only be issued to the owner of the short-term lodging unit and the
owner is responsible for any failure of an agent to comply with Chapter 5.95.
Any permit issued pursuant to Chapter 5.95 is subject to the following
standard conditions:
A. The owner shall, by written or oral agreement, limit overnight,
occupancy of the short-term lodging unit to a specific number of occupants, with
the number of occupants not to exceed that permitted by the provisions of Title
15 of the Newport Beach Municipal Code.
B. The owner shall use best efforts to insure that the occupants and/or
guests of the short-term lodging unit do not create unreasonable noise or
disturbances, engage in disorderly conduct, or violate provisions of the Municipal
Code or any State Law pertaining to noise, disorderly conduct, the consumption
of alcohol, or the use of illegal drugs.
C. The owner shall, upon notification that occupants and /or guests of
his /her short-term lodging unit have created unreasonable noise or disturbances,
engaged in disorderly conduct or committed violations of the Municipal Code or
State law pertaining to noise, disorderly conduct, the consumption of alcohol or
17
the use of illegal drugs, promptly use best efforts to prevent a recurrence of such
conduct by those occupants or guests.
D. The owner of the short-term lodging unit shall use best efforts to
insure compliance with all the provisions of Title 6 of the Newport Beach
Municipal Code (garbage, refuse and cuttings).
E. The owner of the short-term lodging unit shall post a copy of the
permit and a copy of the conditions set forth in the Newport Beach Municipal
Code in a conspicuous place within the unit.
F. With respect to any short-term lodging unit that is located in any
Safety Enhancement Zone, the owner of the unit and any agent retained by the
owner shall take immediate action during the period that the Safety
Enhancement Zone is in effect to prevent occupants or guests from engaging in
disorderly conduct or committing violations of the Newport Beach Municipal Code
or State law pertaining to noise, disorderly conduct, the consumption of alcohol
or the use of illegal drugs.
In addition to the standard conditions, the City Manager has the authority
to impose additional standard conditions, applicable to all short-term lodging
units, as necessary to achieve the objectives of Chapter 5.95 or to impose
additional conditions on any permit in the event of any violation of the conditions
of the permit or the provisions of Chapter 5.95.
The Newport Beach Municipal Code also provides for penalties for
violation of the conditions of approval and /or the revocation of the short-term
lodging permit. The operation of a short-term lodging without a valid permit is a
misdemeanor under the provisions of the Newport Beach Municipal Code.
3. Proposed Regulation of Short -Term Lodging Uses.
As set forth above, short-term lodgings are currently regulated by Chapter
5.95. Proposed changes to the Short-term Lodging Regulations are as follows:
• Section 20.05.030 (Use Classifications): Add a use classification
for vacation home rentals - short-term lodgings. (See, Exhibit B.)
• Section 20.10.020 (Residential Districts: Land Use Regulations):
Add vacation home rentals (short-term lodgings) to allow vacation
home rentals in all R -1.5, R -2, and MFR Districts by right subject to
obtaining a short-term lodging permit.
• Chapter 5.95 (Short-Term Lodging Permits): A global change
should be made to refer to the "Finance Director" as "Revenue
Manager."
f.3
• Section 5.95.005 (Purpose and Findings): Add language to:
Note the long tradition of vacation homes.
Note the positive fiscal impacts of short -term rentals.
Reference Coastal Land Use Plan Section 2.33 and Policy
2.7 -3, which support the short -term rentals as alternative
visitor accommodations pursuant to permits and standard
conditions that ensure the rentals will not interfere with public
access and enjoyment of coastal resources.
• Section 5.95.010(A) (Definitions): change reference to Section
20.87.140 to Section 20.03.030. Add definition of "guest" to
describe renters of properties offered for short -term lodging.
• Section 5.95.020 (Permit): Add to this section a requirement that
any managing agency, agent, or property manager of short -term
lodgings be required to obtain short -term lodging management
permit. Add a permit fee to cover costs associated with the permit
as set by City Council resolution.
• Section 5.95.025 (Agency): Revise this section to make both the
owner and his /her manager /operator responsible for compliance
with Municipal Code and permit conditions.
• New Section 5.95.045 (Notice): Add a new section requiring notice
that the property will be used for short -term lodgings and provide
contact information to all property owners within 100 feet of the
property. Notification will also be required upon permit renewal or if
contact information changes.
• Revise Section 5.95.050 (Conditions): Revise section to include
the following:
Require a written rental or lease agreement; limit one per
unit.
Require rental /lease agreements to be for a period of not
less than 3 days and not more than 30 days.
Remove the option of oral agreement to limit overnight
occupancy.
Limit overnight occupancy to 2 persons per bedroom (plus 2
other persons). City would have the right to conditionally
approve an increase in occupancy if a management plan
was submitted showing how the property can physically
accommodate more people.
19
Require all occupants be listed on the rental/lease
agreement.
Require both the owner and his/her manager /operator to
take reasonable steps to avoid and correct unreasonable
noise, disturbances, disorderly conduct, violations of law,
etc.
Exterior posting of contact information. This requirement
could be optional if the owner /operator provides notice in
accordance with Section 5.95.045.
Require owner or managing agent to provide a 24 hour
contact and respond within two hours of complaint.
Limit the total number of vehicles associated with a short-
term lodging property to the total number of parking places
available at the site plus one.
Require owner and his /her manager /operator to disclose
relevant local ordinances such as loud party ordinance and
other relevant information such as trash collection services
to guests.
Require all advertisements to disclose the owner or his/her
manager /operator City permit number.
• New Section 5.95.055 (Inspections): Add a new section requiring
inspections for code compliance prior to the initial issuance of the
permit and upon every other renewal (i.e. every 4 years).
• Section 5.95.060 (Violations): Revise section to:
Make both the owner and his/her manager /operator subject
to fines for failure to comply with Municipal Code and
conditions of permit.
Add the option of requiring a management plan with the third
violation in 12 months.
Add management permit to revocation procedures for
violations.
• Section 5.95.060 (Penalties): Revise section to:
Make it a misdemeanor to manage a property without a
management permit.
20
4. Moratorium.
Given the extensive regulation already in place, the limited number of new
short -term lodging permits likely to be issued prior to the adoption of new
regulations, the ability of the City to change the conditions for short -term lodging
permits at any time, the nature of the impacts caused by short -term lodgings, and
the ability of the City Council to make modifications to the substantive regulations
in an expedited manner, the City Attorney does not believe the moratorium
should be extended for short —term lodging permits. Rather, the City Attorney's
advice to the City Council is to direct staff to make the proposed changes and
have an ordinance ready for first reading by the second meeting of the City
Council in June 2007.
21
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NEW PORT COAST
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goldfarb 1300 Clay Street, Ninth Floor
i pm a n Oakland, California 94612
attorneys 510 836 -6336
M David Kroot
May 13, 2007
Lee C. Rosenthal
Memorandum
John T. Nagle
Polly V. Marshall
Lynn Hutchins
To
Koren M. Tiedemann
Robin Clauso n, City Attorne y, City of Newport port Beach
Thomas H. Webber
Aaron Harp, Assistant City Attorney, City of Newport Beach
John T. Hoygood
From
Dionne Jackson McLean
Michelle D. Brewer
Polly V. Marshall and Erica Kyle Williams
Jennifer K. Bell
RE
Robert C. Mills
Zoning Ordinance Amendments
Isobel L. Brown
James T. Diamond, Jr.
William F. DiCamillo
On May 22, 2007, the City Council will receive a report on the recent temporary
Margaret F. Jung
moratorium on the establishment and operation of new residential uses that are
Heather J. Gould
transitory in nature. As part of this report, staff intends to distribute proposed revisions
to the Newport Beach Zoning Code concerning group occupancies, and additional
Juliet E. Cox
revisions concerning short-term lodging permits. This memorandum provides a brief
Erica Kyle Williams
summary of the draft amendments concerning group occupancies.
Amy DeVoudreuil
Barbara E. Kautz
Luis A. Rodriguez Under the existing ordinance, group residential uses are prohibited in all zones, with the
exception of small residential care facilities (housing 6 or fewer persons with
disabilities), which are permitted by right in all residential zones, and general residential
care facilities (housing 7 or more persons with disabilities), which are permitted in
certain residential zones only with a federal exception permit. The proposed
amendments continue the general prohibition of group residential uses, and provide
more specific and detailed definitions of the facilities which are exempt from this
Facsimile prohibition. The proposed amendments also eliminate the federal exception permit
510 B36 -1035 requirement for larger facilities and replace it with a use permit requirement. A new
Son Francisco chapter is also added providing procedures for granting requests for reasonable
415 7B8 -6336 accommodations for persons with disabilities, which will also permit group residential
Los Angeles occupancies for disabled persons in residential zones in certain instances.
213 627- 6336 The proposed amendments include the following:
Son Diego
619239-6336 1. Lame Residential Care Facilities -Integral Facilities
Goldfarb & Lipman LLP
Under the existing code, residential care facilities housing seven or more persons
with disabilities are permitted in R -1.5, R -2, and MFR zones with a federal exception
1526102\342065.2
May 13, 2007
Page 2
permit. The amendments eliminate the federal exception permit and instead require a
use permit for such facilities. The proposed amendments also add a new definition of
"Integral Facilities" to the Zoning Code, which reads as follows:
"Integral facilities" means two or more residential care facilities (small licensed
or general) or group residential uses, as defined in 20.05.030, which may or may
not be on contiguous parcels of land, that are under the control and management
of the same owner, operator, management company or licensee, including
affiliates of such entities, and are integral components of the same residential
facility, such as by providing housing in one facility and recovery, treatment,
meals or other services in another residential facility, or by designating one
residential facility to provide recovery, treatment, meals or other services for
several residences. Licensed residential care facilities that are eligible to be
licensed as a single facility under State law are integral facilities, regardless of
the number of licenses actually held.
The new integral facilities definition is intended to address the problem of operators
claiming to operate small residential care facilities, which are permitted by right in all
residential zones, but who in reality are operating larger facilities because of integrated
operations (for example a three unit building which houses what is claimed to be three
separate small facilities of six persons each, but in reality is operated as a large facility
of 18 persons). A related change in Section 20.010.20(P) prohibits a facility that
provides services to residents from offering services to nonresidents. Under the
proposed amendments, the City would be able to monitor and control residential care
facilities with seven or more occupants, including integral facilities, through the use
permit process.
2. Small care residential facilities
The amendments change the name of "Residential Care, Limited" to "Residential Care
Facilities, Small Licensed" and changed the definition so that it includes only state
licensed facilities that are required by State law to be treated as a single housekeeping
unit for zoning purposes. The amendments also clarify that if such a facility is part of
an "integral facility" (see above for description of integral facility) that serves seven or
more persons, it is not classified as a Residential Care Facility, Small Licensed.
Small unlicensed group homes for persons with disabilities may also be permitted
through the reasonable accommodation process, as explained below.
2
1526\02\442065.2
May 13, 2007
Page 3
3. Parolee - probationer homes
The amendments add a new definition of parolee- probationer homes, which includes a
residential structure that houses two or more parolee- probationers unrelated by blood,
marriage, or legal adoption, in exchange for monetary or non - monetary consideration,
and excludes licensed facilities for disabled persons. These facilities are prohibited in
all zones as a group residential use.
4. Convalescent homes and hospitals
Convalescent homes and hospitals were deleted from the residential districts land use
schedule as inappropriate for residential districts. It is our understanding that no such
uses currently exist in residential districts in the City
5. Reasonable Accommodation
The proposed amendments add a reasonable accommodation chapter that is needed to
assist the City in complying with federal and state fair housing laws. The chapter sets
forth the City's policy to provide reasonable accommodation in its zoning regulations
when needed to provide an individual with a disability an equal opportunity to use and
enjoy a residence or avoid discrimination on the basis of disability.
The amendments establish a procedure where most requests for reasonable
accommodation may be approved, conditionally approved or denied by the Zoning
Administrator or other entity that may be considering the accommodation request along
with another discretionary permit. In order to balance the privacy and equal opportunity
rights of persons with disabilities with the due process rights of neighbors to receive
notice, the reasonable accommodation process provides for limited notice of a
reasonable accommodation determination to the abutting property owners (including
those across the street and/or alley) only after the initial decision is made. The
applicant, the abutting neighbors or a member of the Planning Commission may then
appeal the initial decision to grant or deny a reasonable accommodation, and a hearing
will be held. If the reasonable accommodation is requested as part of another approval,
it will be subject to the same notice and hearing procedures as the other approval
The proposed reasonable accommodation amendments treat requests for reasonable
accommodation for group homes for people with disabilities serving six or fewer people
differently. For these smaller group homes, the Zoning Administrator may take
ministerial action to approve a reasonable accommodation if certain specified standards
are met. These standards are intended to allow the Zoning Administrator to disapprove
small unlicensed homes that are operating illegally (for example, operating without a
license where a license would be required) or as part of larger integral facilities. Where
the legitimate homes are approved by the Zoning Administrator as a ministerial action,
no notice or appeal rights are given to abutting neighbors. However, in order to assure
1526 \02\442065.2
May 13, 2007
Page 4
the Zoning Administrator applies the standards correctly, a member of the Planning
Commission may appeal a ministerial approval if such member asserts that the Zoning
Administrator made a clear error in application of the standards. These provisions are
intended to provide reasonable accommodation for people with disabilities in legitimate,
properly operated unlicensed homes and to provide equal protection under the law to
persons who need to reside in these small unlicensed facilities in order to have equal
opportunity to reside in Newport Beach's residential neighborhoods. Finally, these
provisions were developed in recognition of case law that has consistently struck down
procedures which expose persons with disabilities to potentially- abusive hearing
processes that are not required for other, comparable residential uses for persons
without disabilities
6. No separation requirements
The proposed amendments do not include separation requirements. Separation
requirements are classified by the courts as facially discriminatory. In the Wh Circuit,
facially discriminatory classifications withstand legal challenge only if the restriction
benefits the disabled or the restriction responds to legitimate safety concerns raised by
the individuals affected, rather than being based on stereotypes. We have not located
any studies that indicate that separation requirements are necessary to benefit persons
with disabilities, and consequently we conclude that such requirements would violate
fair housing laws and would not withstand legal challenge.
7. Amortization of non - conforming uses
The proposed amendments do not at this time include new provisions for amortizing
existing uses that do not conform to the changed zoning code. Newport Beach already
has broad amortization provisions providing for a uniform five year amortization period
which we understand are not currently being enforced. Staff is considering a broad
revamping of these provisions as a separate action, after the group home zoning code
amendments are considered. Revised amortization procedures could require non-
conforming uses that now require a use permit to apply for such a permit, and, if denied,
the use could then be amortized over a appropriate period of time for various uses, as
determined by economic studies.
8. Short term lodging
The proposed amendments include a new Residential Use Classification for Vacation
Home Rental described as a "residence or dwelling unit where the complete residential
unit, including bedroom(s), kitchen and bath(s), is rented or leased to a person, or group
of persons, under a single written or oral rental or lease agreement for a period of 30
days or less." The Vacation Home Rental Use Classification is consistent with and
recognizes the use of vacation rentals in the R1.5, R2 and MFR zones and continues the
1526 \02\442065.2
May 13, 2007
Page 5
required permitting requirements under the existing rules. Regulations necessary to
alleviate any impacts not sufficiently handled by the existing regulations will be
addressed in a separate ordinance amending provisions of Chapter 5.95.
1526 \02\142065.2
DRAFT FOR DISCUSSION PURPOSES
Chapter 20.03
Sections:
20.03.010 Purpose and Applicability
20.03.020 Rules for Construction of Language
20.03.030 Definitions
20.03.010 Purpose and Applicability [not included here]
20.03.020 Rules for Construction of Language [not included here]
20.03.030 Definitions [only changed sections included]
Add the fallowing definitions:
"Boarding or rooming house"tneans a[ residence or dwelling unit. or na_rt thereof. wherein two
or more rooms are rented under two or more separate written or oral rental agreements- leases or
subleases or combination thereof- whether or not the owner. agent or rental manager resides
within the residence.]
r, rtt<tFlt- a o - ;, otfier asewhwidieapped . ai ru.i, ,i -they ar
zt *r"- :11WF'v R-single ha, k..,.....ng u.i.,;t but hall + el ide y atli:., 7 ,,,.,,,- r6.,ri�HHt
"Integral facilities" means two or more residential care facilities. (small licensed or general) -a
group residential uses, as defined in 20.05.030. which may or may not be on contiguous parcel
of land, that are under the control and management of the same owner. operator, management
company or licensee. including affiliates of such entities, and are integral components of
same residential facility. such as by providing housing in one facility and recovery, treatment.
meals or other services in another residential facility, or by designating one residential facility to
provide recovery treatment meals or other services for several residences Licensed residential
care facilities that are eligible to be licensed as a single facility under State law are integral
facilities, regardless of the number of licenses actually held
" "Single k low,ektef)jfie Uilit- housekeeping unit" means the functional equivalent of a traditional
family, whose members are an interactive group of persons jointly occupying a single dwelling
unit, under no more than one written or oral rental agreement, including the joint use of common
1526 \02 \439504.6
DRAFT FOR DISCUSSION PURPOSES
areas and sharing household activities and responsibilities such as meals, chores and expenses.
" 6+ = R-A and P ! a tr ,.,r a c. Vle a ek v tjlI member , : ,.i
ce a l Edso l 2
tioll -i= olsie+rt gl-ou ..
means a parccl Qr adj()ining parcels under r' • or rr r considered .
unit for p=oses of develoment or other
" Campus" means three or more buildings in a residential zone within a three hundred (300) foot
gqg
r•r -� • r' • II.- r r r- • r- r
1526\02 \439504.6
DRAFT FOR DISCUSSION PURPOSES
Chapter 20.05
USE CLASSIFICATIONS
Sections:
20.05.010
Purpose and Applicability.
20.05.020
Uses Not Classified.
20.05.030
Residential Use Classifications.
20.05.040
Public and Semi - public Use Classifications.
20.05.050
Commercial Use Classifications.
20.05.060
Industrial Use Classifications.
20.05.070
Agriculture and Extractive Use Classifications.
20.05.080
Accessory Use Classifications.
20.05.090
Temporary Use Classifications.
20.05.010 Purpose and Applicability
Use classifications describe one or more uses having similar characteristics, but do not list every
use or activity that may appropriately be within the classification. The Planning Director shall
determine whether a specific use shall be deemed to be within one or more use classifications or
not within any classification in this Code. The Planning Director may determine that a specific
use shall not be deemed to be within a classification, whether or not named within the
classification, if its characteristics are substantially incompatible with those typical of uses
named within the classification. The Planning Director's decision may be appealed to the
planning commission. (Ord. 97 -09 Exh. A (part), 1997)
20.05.020 Uses Not Classified
Any new use, or any use that cannot be clearly determined to be in an existing use classification,
may be incorporated into zoning regulations by a Zoning Code text amendment, as provided in
chapter 20.94. (Ord. 97 -09 Exh. A (part), 1997)
20.05.030 Residential Use Classifications
A A.-Day Care, Limited. "Pay G a°°. T imit @d" means- ae�a;�i Nonresidential, nonmedical
care and supervision of fourteen (14) or fewer persons on a less than twenty -four (24) hour basis.
This classification includes, but is not limited to, nursery schools, preschools, and day care
centers for children (large and small family day care homes) and adults.
1. 4 —Large Family Child Care Homes. Day care facilities located in single - family residences
where an occupant of the residence provides care and supervision for nine to fourteen (14)
1526 \02 \439504.6
DRAFT FOR DISCUSSION PURPOSES
children. Children under the age of ten years who reside in the home, count as children served by
the day care facility.
2. 2 —Small Family Child Care Homes. Day care facilities located in single - family residences
where an occupant of the residence provides care and supervision for eight or fewer children.
Children under the age of ten years who reside in the home, count as children served by the day
care facility.
B. , oe-eupied
11 its 4iftiedqrpup Residential Shared living quarters occupied by two or more persons not
living together as a dingle Ho Fe' eep w 4git Ingle housekeeping uni . This classification
includes[J without limitation. boarding ha rooming houses, dormitories, fraternities,
sororities, and private residential clubs, but excludes general residential care facilities, small
licensed residential care facilities, and residential hotels (see Single -Room Occupancy (SRO)
Residential Hotels, Section 20.05.050(EE)(4)).
C.
D. .}._Lb. -di , r ..r D,.efoi ... l400ses. A J ..esidenee eF ,1.. elling unit of .aft thefoe f wherein twe
or mare rooffis afe fet-ted undef two or more sepaFate "tten of ofal fental agreements, leases-of
subleases of eefnbination thereeKI, w4iother or fiot the owner, agent of fefftal ffianageF resides
within the ..esi fie.......t
E. (_ = Multifamily Residential. Three or more dwelling units on a site. This classification
includes mobile home and factory -built housing.
F Parolee - probationer home Any residential structure or
...- u. . rr �..
url- ,r r1=1-
mom
and received conditional and revocable release in the community under the supervisiQn Qf a
k-UleWILr, ,
girl �.Bids .l . r $141 . r . . of . . . .r .t
.. mm"
111
the supervision of . uth Authority-Pa
E 44- Residential Care-Facilities, General. c,,,..ed IiVing .... +e._. (A'4140 LA se...,.-.,.,,,,; +, ,r
=ti` u :f= 1' a f: • Ae ^" ^ ^r ^^ + Anv site or building. or groups of sites or buildings.
including integral facilities (as defined in 20.03.0301. for seven or more persons with physical or
mental impairments that substantially limit one or more of such person's major life activities
when such persons are not living together as a single housekeeping unit. This classification
includes, but is not limited to, gin groan residential uses such as boarding or
rooming houses, sober living environments, recovery facilities and establishments providing
4
1526 \02 \439504.6
DRAFT FOR DISCUSSION PURPOSES
non - medical care for persons in need of personal services, supervision, protection or assistance
essential for sustaining the activities of daily living.
1 1.._..R4def+tl6l Gars. Limited. Shtifed. 1. :. ( ithOLIt sepaFate kitchen and bathresp3
'a rzr4 one E ore of s�ieh pefsaii's niajeF life aetivities. This ,.I . „ lf.,. ,«...., .I .
';12 }41t1E�v; —l., t is not I: .tee fe, g „1, 'itii)81•_i' Pnvironiiients, reeeve-y t'i ilitie ...]
H. Residential-Care Facilities. Small Licensed. State licensed facilities that provide care.
services, or treatment in a community residential setting for six or fewer adults. children. or
adults and children and which are re * Lby State -law to be treated as a single housekeeping
niLfor zoning purposes. Small licensed residential care facilities shall be subject to all land use
and Property development &gulations applicable to single housekeeping units. This classification
does not include State-licensed facilities that provide care services or treatment in a community
residential setting for six or fewer adults, children, or adults and children if such facilities onerate
as part of integral facilities- as defined in 20.03.030. when such integral facilities serve seven or
more adults, children, or adults and children (in such circumstances, the integral facilities aze
classified as general residential care fag_ es.)
L_ F -.- Single - Family Residential. A building or buildings containing one dwelling unit located on
a single lot for occupancy by one family. This classification includes mobile homes and factory-
built housing.
L 6 -Two- Family Residential. A building or buildings containing two dwelling units located on
a single lot, each unit limited to occupancy by a single family. This classification includes
mobile homes and factory-built housing. (Ord ,006, 27 c 1 (. ,. -t), 2006; n..,1 006 25 e 1 (part
20061 014 4-16 § 200/k Ord 97 nc�n.,> �A (..art) -1om)
-1 M,
20.05.040 Public and Semi- public Use Classifications
A. Airport. Runways and related facilities for airplane landing and take -off.
B. Cemetery. Land used or intended to be used for the burial of human remains and dedicated for
cemetery purposes. Cemetery purposes include columbariums, crematoriums, mausoleums and
mortuaries operated in conjunction with the cemetery.
C. Clubs and Lodges. Meeting, recreational, or social facilities of a private or nonprofit
organization primarily for use by members or guests. This classification includes union halls,
social clubs and youth and senior centers.
1526 \02\439504.6
DRAFT FOR DISCUSSION PURPOSES
1. Yacht Clubs. Meeting, recreational, social and support facilities of an organization primarily
used to promote and regulate yachting and boating.
D. Convalescent Facilities. Establishments providing care on a twenty -four (24) hour basis for
persons requiring regular medical attention, but excluding facilities providing surgical or
emergency medical services.
E. Cultural Institutions. Nonprofit institutions displaying or preserving objects of interest in one
or more of the arts or sciences. This classification includes libraries, museums, and art galleries.
F. Day Care, General. Provision of »e tinnediealnon- medical care for fifteen (15) or more persons
on a less than twenty -four (24) hour basis. This classification includes nursery schools,
preschools, and day care centers for children or adults.
G. Detention Facilities. Publicly owned and operated facilities providing housing, care, and
supervision for persons confined by law.
H. Emergency Health Care. Facilities providing emergency medical service with no provision for
continuing care on an inpatient basis.
I. Emergency Shelter. Overnight sleeping accommodations providing temporary housing (not to
exceed sixty (60) days) to indigent, homeless, needy, or transient families and/or individuals.
Such accommodations may include basic supportive services such as eating and drinking,
restroom, bathing, laundry facilities, and storage areas.
J. Government Offices. Administrative, clerical, or public contact offices of a government
agency, including postal facilities, together with incidental storage and maintenance of vehicles.
K. Heliports. Pads and facilities enabling takeoffs and landings by helicopters.
L. Hospitals. Facilities providing medical, surgical, psychiatric, or emergency medical services
to sick or injured persons, primarily on an inpatient basis. This classification includes incidental
facilities for out - patient treatment, as well as training, research, and administrative services for
patients and employees.
M. Maintenance and Service Facilities. Facilities providing maintenance and repair services for
vehicles and equipment, and materials storage areas. This classification includes corporation
yards, equipment service centers, and similar facilities.
N. Marinas. A boat basin with docks, mooring facilities, supplies and equipment for small boats.
O. Park and Recreation Facilities. Noncommercial parks, playgrounds, recreation facilities, and
open spaces.
P. Public Safety Facilities. Facilities for public safety and emergency services, including police
and fire protection.
6
1526 \021439504.6
DRAFT FOR DISCUSSION PURPOSES
Q. Religious Assembly. Facilities for religious worship and incidental religious education, but
not including private schools as defined in this section.
R Redd .
iii`fN'�- tE'Y4i't4iEi'-as a s i 11 g 1 e h 0 asekee pin-, .. it. T hi 5 e lassi fie Ettien kle 1 tides 13-) hL#tiSi3Ei�
cael }t• ^1 far .taming the aetiyifie; of A.:1.. living.S: Schools, Public or Private.
Educational institutions having a curriculum comparable to that required in the public schools of
the State of California.
. -S Utilities, Major. Generating plants, electrical substations, above - ground electrical
transmission lines, lone switching buildings, refuse collection, transfer recycling or disposal
facilities, water reservoirs, flood control or drainage facilities, water or wastewater treatment
plants, transportation or communications utilities, and similar facilities of public agencies or
public utilities. A structure that may have a significant effect on surrounding uses shall be
regulated under this classification.
1: -1 Utilities, Minor. Utility facilities that are necessary to support legally established uses and
involve only minor structures such as electrical distribution lines, underground water and sewer
lines. (Ord. 2006 -27 § 1 (part), 2006; Ord. 2004 -16 § 3, 2004; Ord. 97 -09 Exh. A (part), 1997)
20.05.050 Commercial Use Classifications [not included here]
20.05.060 Industrial Use Classifications [not included here)
20.05.070 Agriculture and Extractive Use Classifications [not included here]
20.05.080 Accessory Use Classifications [not included here]
20.05.090 Temporary Use Classifications [not included here]
7
1526 \02\439504.6
DRAFT FOR DISCUSSION PURPOSES
Chapter 20.10
RESIDENTIAL DISTRICTS
Sections:
20.10.010 Specific Purposes.
20.10.020 Residential Districts: Land Use Regulations.
20.10.030 Residential Districts: Property Development Regulations.
20.10.040 Special Development Regulations for Corona del Mar, West Newport, and
the Balboa Peninsula.
20.10.010 Specific Purposes
Residential district regulations are intended to:
A. Locate residential development in areas which are consistent with the General Plan and with
standards of public health and safety established by the Municipal Code;
B. Ensure adequate light, air, privacy, and open space for each dwelling, and protect residents
from the harmful effects of excessive noise, population density, traffic congestion, and other
adverse environmental effects;
C. Promote development of quality housing affordable by low- and moderate - income households
by providing a density bonus for projects in which a portion of the units are affordable for such
households;
D. Protect residential areas from fires, explosions, landslides, toxic fumes and substances, and
other public safety hazards;
E. Protect adjoining single - family residential districts from excessive loss of sun, light, quiet, and
privacy resulting from proximity to multifamily development;
F. Achieve design compatibility with surrounding neighborhoods;
G. Provide sites for public and semipublic land uses which complement residential development
or which require a residential environment;
H. Provide public services and facilities to accommodate planned population and densities.
The specific residential districts and their purposes are as follows:
Residential - Agricultural (R -A) District. Provides areas for single - family residential and light
farming land uses.
1526 \02 \439504.6
DRAFT FOR DISCUSSION PURPOSES
Single - Family Residential (R -1) District. This is the City's most restrictive residential zoning
district, established to provide for a stable, social neighborhood for single - family residential land
uses by limiting occupancy to one family.
Restricted Two - Family Residential (R -1.5) District. Provides areas for single- family and two -
family residential land uses with the total gross floor area of all buildings limited to a maximum
floor area ratio of 1.5 times the buildable area.
Two - Family Residential (R -2) District. Provides areas for single - family and two - family
residential land uses.
Multifamily Residential (MFR) District. Provides areas for single - family and two - family
residential land uses. (Ord. 2004 -15 § 4, 2004: Ord. 2004 -1 Exh. ZA -1 (part), 2004; Ord. 97 -15
Exh. B (part), 1997: Ord. 97 -09 Exh. A (part), 1997)
20.10.020 Residential Districts: Land Use Regulations
The following schedule establishes the land uses defined in Chapter 20.05 as permitted or
conditionally permitted in residential districts, and includes special requirements, if any,
applicable to specific uses. The letter "P" designates use classifications permitted in residential
districts. The letter "L" designates use classifications subject to certain limitations prescribed
under the "Additional Use Regulations" which follows. The letters "UP" designate use
classifications permitted on approval of a use permit, as provided in Chapter 20.91. The letters
"PD/U" designate use classifications permitted on approval of a use permit issued by the
Planning Director, as provided in Chapter 20.91. The letters "P/UP" designate use classifications
which are permitted when located on the site of another permitted use, but which require a use
permit when located on the site of a conditional use. The ' "' ^ °° "CrP" designate use
2 ):41:- Letters in parentheses in the "Additional Regulations" column refer to "Additional Use
Regulations" following the schedule. Where letters in parentheses are opposite a use
classification heading, referenced regulations shall apply to all use classifications under the
heading.
1526\02 \439504.6
DRAFT FOR DISCUSSION PURPOSES
Residential Districts: Land Use Regulations
P= Permitted
UP =Use permit
PD /U =Use permit issued by the Planning Director
L= Limited see Additional Use Re ulations)
- -- =Not Permitted
Additional
PUBLIC AND SEMI - PUBLIC
Cemeteries
Clubs and Lodees
Day Care, General
Government Offices
Park and Recreation Facilities
Public Safety Facilities
Religious Assembly
Schools, Public and Private
Utilities, Major
Utilities, Minor
COMMERCIAL USES
Horticulture, Limited
Nurseries
Vehicle /Equipment Sales and
1526 \02 \439504.6
L -1 L -1 L -1
- -- L -2 L -2 L -2
UP
UP
UP
UP
UP
P
UP
UP
R -A
R -1
R -1.5
R -2
MFR
Regulations
RESIDENTIAL
UP
UP
UP
UP
UP
(A), (B), (C),
UP
UP
UP
UP
P
P
M
Day Care, Limited
- --
- --
- --
- --
- --
Group Residential
- --
- --
- --
- --
(Ol_ (Pl
Large Family Child Care Homes
PD /U
PD/U
PD /U
PD /U
PD/U
N
Caro' Q __- '5 e
Residential Care Facilities,
P
P
P
P
P
(OL -_ P)
Limi4edSmall Licensed
Residential Care Facilities,
- --
- --
447-PUP
4=L-PUP
1- N 2UP
General
Single- Family Residential
P
P
P
P
P
(D), (E), (M)
Small Family Child Care Homes
P
P
P
P
P
(N)
Multifamily Residential
- --
- --
- --
- --
P
(D)
Two - Family Residential
- --
- --
P
P
P
(D)
PUBLIC AND SEMI - PUBLIC
Cemeteries
Clubs and Lodees
Day Care, General
Government Offices
Park and Recreation Facilities
Public Safety Facilities
Religious Assembly
Schools, Public and Private
Utilities, Major
Utilities, Minor
COMMERCIAL USES
Horticulture, Limited
Nurseries
Vehicle /Equipment Sales and
1526 \02 \439504.6
L -1 L -1 L -1
- -- L -2 L -2 L -2
UP
UP
UP
UP
UP
P
UP
UP
UP
UP
UP
UP
UP
UP
UP
UP
UP
UP
UP
UP
UP
UP
UP
UP
UP
UP
UP
P
P
P
(A),
L -1
L -2
Lw
UP
UP
UP
UP
UP
P
P- -- - -- - -- - --
PD/U - -- - --
10
(A); (B), (C)3
a
DRAFT FOR DISCUSSION PURPOSES
Services
- Commercial Parking Facility
Visitor Accommodations
-Bed and Breakfast Inns
-SRO Residential Hotels
AGRICULTURAL AND
EXTRACTIVE USES
Animal Husbandry
Crop Production
Mining and Processing
ACCESSORY USES
Accessory Structures and Uses
TEMPORARY USES
Circuses and Carnivals
Commercial Filming, Limited
Personal Property Sales
Heliports, Temporary
Real Estate Offices, Temporary
- -- L -3 L -3 L -3 L -3
- -- - -- - -- UP UP (F)
- -- - -- - -- - -- UP
(A), (B), (C)
PD/U
- --
- --
- --
(G)
P-
--
- --
- --
- --
L-4
L -4
L -4
L4
L -4
(H)
(A), (B), (C)
P/UP
P/UP
P/iJP
P/UP
P/UP
(I)
(A), (B), (C)
P
P
P
P
P
(K)
P
P
P
P
P
(K)
P
P
P
P
P
(L)
L -5
- --
- --
- --
L -5
(J)
L -5
L -5
L -5
L -5
L -5
(B)
Residential Districts: Additional Land Use Regulations
L -1: Twenty (20) acres minimum.
L -2: Limited to yacht clubs, use permit required.
L -3: Public or no fee private lots for automobiles may be permitted in any residential district
adjacent to any commercial or industrial district subject to the securing of a use permit in each
case.
L -4: See Chapter 20.8 1, Oil Wells.
L -5: Subject to the approval of the Planning Director.
L -6: Permitted by right.
(A): See Section 20.60.025, Relocatable Buildings.
(B): See Section 20.60.015, Temporary Structures and Uses.
(C): See Section 20.60.050, Outdoor Lighting.
(D): With-Flw ei\- , ti ol'uses in the o 1 Zone, any d ling unit oth peffflwed by flit
alcPermitted subject to the securing of
1. A 1�+,,tiiess License pursuant to Chapter 5.04 of the Municipal Code.
15261021439504.6
DRAFT FOR DISCUSSION PURPOSES
2. A m+ii;4°11' + ^^ ^Transient Ocmnancv Registration Certificate
pursuant to Section 3.16.060 of the Municipal Code.
3. A shart „_.,, 'odgiiig peiiiiiQQdJerm ing Perini pursuant to Chapter 5.95 of the
Municipal Code.
(E): See Chapter 20.85, Accessory Dwelling Units.
(F): See Section 20.60.110, Bed and Breakfast Inns.
(G): Keeping of Animals in the R -A District. The following regulations shall apply to the
keeping of animals in the R -A District:
1. Large Animals. The keeping of large animals (as defined in Section 20.03.030) shall be
subject to the following regulations:
a. Horses. One horse may be kept for each ten thousand (10,000) square feet of lot area, up to a
maximum of three horses; provided, the horse or horses are kept for recreational purposes only.
The keeping of four or more horses for recreational uses shall require a use permit issued by the
Planning Director. The keeping of horses for commercial purposes shall require a use permit
issued by the Planning Commission.
b. Other Large Animals. Other large animals, including goats, sheep, pigs and cows, may be kept
on lots of fifteen thousand (15,000) square feet or more and the number shall not exceed two
adult animals of any one species.
c. Total Number Permitted. The total number of large animals shall not exceed six. Offspring are
exempt until such time as they are weaned.
2. Domestic and Exotic Animals. The number of domestic and exotic animals (as defined in
Section 20.03.030) shall not exceed six. Offspring are exempt up to the age of three months. The
keeping of four or more dogs over the age of three months shall require a kennel license pursuant
to Section 7.04.090 of the Municipal Code. The keeping of wild animals shall require a permit
pursuant to Chapter 7.08 of the Municipal Code.
3. Small Animals. The number of small animals, other than domestic and exotic animals (as
defined in Section 20.03.030), shall not exceed six. Offspring are exempt up to the age of three
months.
4. Control.
a. Domestic Animals. No such animals, except for cats, shall be permitted to run at large, but
shall be confined, at all times within a suitable enclosure or otherwise under the control of the
owner of the property.
12
1526 \02 \439504.6
DRAFT FOR DISCUSSION PURPOSES
b. Other Animals. No animal, other than domestic animals, shall be permitted to run at large, but
shall be confined, at all times within a suitable enclosure.
(H): See Chapter 20.8 1, Oil Wells.
(I): See Section 20.60.100, Home Occupations in Residential Districts.
(J): See Section 20.60.055, Heliports and Helistops.
(K): Special event permit required, see Chapter 5.10 of the Municipal Code.
(L): See Section 20.60.120, Personal Property Sales in Residential Districts.
(M): See Section 20.60.125, Design Standards for Mobile Homes on Individual Lots
(N): See Section 20.60.130 (Day Care Facilities for Children).
r 1meg al raciuues, as aennea in zi . i . serving seven or more aquas. are crassinea as
residential care facilities general Residential care facilities general would normally be
prohibited in all residential zones as a group residential use, but may be Permitted with a use
permit in the R -1.5. R -2 and MFR zones to facilitate housing for persons with disabilities.
L)i :d.. 2006 ,-, c i (part �006, n.A �nni 16 e c, 2004, n.-,r inn+ r G.,ti 7n i (part) >nnn•
,nn r i, n ; ,, ..> >nr ».{tt t}n v c i r .. ono. n..a n i . r: ,.r, n r ,. yi one.
_ _ z . . Try, .... .. .
(P):_No_residential use that includes the nrovision of services to residents may offer services to
PpmesidePts_
20.10.030 Residential Districts: Property Development Regulations [not included here]
20.10.040 Special Development Regulations for Corona del Mar, West Newport, and
the Balboa Peninsula [not included here]
13
1526\02 \439504.6
DRAFT FOR DISCUSSION PURPOSES
Chapter 20.90
ZONING ADMINISTRATOR
Sections:
Note to Chapter 20.90
20.90.010
Purpose.
20.90.020
Authority.
20.90.030
Application Filing.
20.90.040
Planning Department Review.
20.90.050
Environmental Review.
Note to Chapter 20.90
* Prior ordinance history: Ord. 97 -09.
20.90.010 Purpose
To establish administrative provisions and procedures for the implementation of this code. (Ord.
2004 -25 § 1 (Exh. A (part)), 2004)
20.90.020 Authority
A. Planning Director. This code shall be administered by the Planning Director under the
administrative authority and direction of the City Manager pursuant to Title 2 of the Municipal
Code.
B. Zoning Administrator. The Planning Director shall appoint a qualified Planning Department
staff member as the Zoning Administrator. The Zoning Administrator shall have the authority to
investigate and render decisions on applications as prescribed by the individual chapters of this
code. The Zoning Administrator shall serve in that capacity at the discretion of the Planning
Director.
C. Planning Commission. The Planning Commission established by Article VII of the City
Charter shall have the authority to investigate and render decisions on applications as prescribed
by the individual chapters of this code. (Ord. 2004 -25 § 1 (Exh. A (part)), 2004)
20.90.030 Application Filing
A. Required Forms. Applications for discretionary approvals, including but not limited to,
amendments, development plans, modifications permits, site plan review, use permits, variances,
and coastal permits shall be filed in the office of the Planning Department in writing on forms
prescribed by the Planning Director.
1526 \02 \439787.6
DRAFT FOR DISCUSSION PURPOSES
B. Required Materials. Applications for discretionary approvals shall be accompanied by all
plans, maps, and other materials required by the prescribed forms, unless specifically waived by
the Planning Director. The Planning Director may request additional materials deemed necessary
to support the application.
C. Required Signatures. Application for discretionary approvals may be made by the owner,
lessee, or agent of the owner of the property affected. The application shall be signed by the
owner of record or may be signed by the lessee or by an authorized agent if written authorization
from the owner of record is filed concurrently with the application.
D. Fees. Applications for discretionary approvals shall be accompanied by a fee as established
by resolution of the City Council. (Ord. 2004 -25 § 1 (Exh. A (part)), 2004)
20.90.040 Planning Department Review
A. Time Limits and Notification. Within thirty (30) days of the filing of an application, the
Planning Department shall determine whether the application is complete and notify the
applicant in writing if the application is determined to be incomplete.
B. Incomplete Applications. If the application is determined not to be complete, the Planning
Department shall notify the applicant in writing and shall specify those parts of the application
which are incomplete and shall indicate the manner in which they can be made complete,
including a list and thorough description of the specific information or materials needed to
complete the application. Upon the receipt of the information or materials needed to complete
the application, or any resubmittal of the application, a new thirty (30) day review period shall
begin to determine the completeness of the application.
C. Extension of Time Limits. Extensions of the time limits of the review period are permitted
when mutually agreed upon by the Planning Department and the applicant.
D. Waivers. The Planning Director may waive the submission of items deemed unnecessary.
E. Exemption for Environmental Review. This section shall not be construed as limiting the
ability of the Planning Department to request and obtain information needed to conduct
environmental review under the terms of the California Environmental Quality Act. (Ord. 2004-
25 § l (Exh. A (part)), 2004)
20.90.050 Environmental Review
A. A project that is not exempt from the California Environmental Quality Act (CEQA) shall be
reviewed and either a Negative Declaration or an Environmental Impact Report (EIR) shall be
prepared.
1526 \02\439787.6
DRAFT FOR DISCUSSION PURPOSES
B. Time Limits. For projects in which the City is the lead agency, negative declarations shall be
completed and ready for approval within one hundred five (105) days from the date the
application is accepted as complete; environmental impact reports shall be completed and
certified within one year from date the application is accepted as complete. No application for a
project shall be deemed to be incomplete for lack of a waiver of the time limits established by
this section.
C. Extension of Time Limits. The Planning Director may provide for a reasonable extension of
the time limits established by this section in the event that compelling circumstances justify
additional time and the project applicant consents thereto. (Ord. 2004 -25 § 1 (Exh. A (part)),
2004)
Chapter 20.91
USE PERMITS AND VARIANCES
Sections:
20.91.01 Purpose.
20.91.015 Use Permit;Qx Variance, of Fedefal &Eee._t:,... Perm: Requisite to Other
Permits.
20.91.020 Application for Use Permit;9s Variance, or c°a~~a' li°eeptia • Pe
20.91.025 Duties of the Planning Director and the Planning Commission.
20.91.030 Notice and Public Hearing.
20.91.035 Required Findings.
20.91.040 Conditions of Approval.
20.91.045 Effective Date.
20.91.050 Expiration, Time Extension, Violation, Discontinuance, and Revocation.
20.91.055 Amendments and New Applications.
20.91.060 Rights of Appeal.
I ' I I �i ►I r' t!r" rr •rrr 'r r � '!' �.
•i � �' r! r'•e '� ! '! r ! •� rr +� , rrrrrr!!s�r r�� '
A. This chapter provides the flexibility in application of land use and development regulations
necessary to achieve the purposes of this Code by establishing procedures for approval,
conditional approval, or disapproval of use permit and variance applications.
B. Use permits are required for use classifications typically having unusual site development
features or operating characteristics requiring special consideration so that they may be designed,
located, and operated compatibly with uses on adjoining properties and in the surrounding area.
C. Variances are intended to resolve practical difficulties or unnecessary physical hardships that
may result from the size, shape, or dimensions of a site or the location of existing structures
thereon; from geographic, topographic, or other physical conditions on the site or in the
immediate vicinity; or from street locations or traffic conditions in the immediate vicinity of the
site. Variances may be granted with respect to property development regulations and
performance standards, but do not extend to land use regulations. (Ord. 97 -09 Exh. A (part),
1997)
20.91.015 Use Permit;9r Variance, or Feder°' E xeeption Permit Requisite to Other
Permits
No building permit or certificate of occupancy shall be issued in any case where a use permit;Qr
variance, ot ' ed s-al ': °' ~' ' a Pei-nit is required by the terms of this code unless and until such
use permit:91 variance or Federal E et k has been granted by the Planning Director or
1526 \02 \439787.6
DRAFT FOR DISCUSSION PURPOSES
the Planning Commission or by the affirmative vote of the City Council on appeal or review and
then only in accordance with the terms and conditions of the use permit,Q variance or Fedefal
ie:xc�y3e�rR granted. (Ord. 2004 -16 § 6, 2004: Ord. 97 -09 Exh. A (part), 1997)
20.91.020 Application for Use Perirnit5--qr Variance, or Federal Exeeption Permi
An application for a use permit;Q variance, fede°°' Exeepfien Pef T * shall be filed in a
manner consistent with the requirements contained in Chapter 20.90, Application Filing and
Fees. (Ord. 2004 -06 § 7, 2004: Ord. 97 -09 Exh. A (part), 1997)
20.91.025 Duties of the Planning Director and the Planning Commission
A. Authority. The Planning Commission shall approve, conditionally approve, or disapprove
applications for use permits; or variances; or- Pede+at Exception Pei-ffl ts, unless the authority for
an administrative decision on a use permit is specifically assigned to the Planning Director in the
individual chapters of this code.*
Exception. The City Council shall have final decision - making authority on the applications for
use permits; or variances, aHO Fed._..' &,.eptien ileni.:.s filed concurrently with amendments to
the General Plan, zoning code, or a planned community development plan or with a development
agreement.
B. Rendering of Decision. After the conclusion of the hearing on any application for a use
permit-or variance, or Fede al E- iee..6o n.,. n+k the Planning Commission shall render a
decision within thirty -five (35) days. Where the authority for an administrative decision on a use
permit is assigned to the Planning Director, the Planning Director shall render a decision within
fourteen (14) days of the acceptance of a completed application.
C. Report to the Planning Commission and City Council. The Planning Director shall report the
discussion to the Planning Commission on a use permit or variance to the City Council at the
next regular meeting or within five days of the decision, whichever occurs first. Upon rendering
a decision on a use permit, the Planning Director shall report to the Planning Commission and
the City Council at the next regular meeting or within five days of the decision, whichever
occurs first.
D. Notice of Decision. Upon the rendering of a decision on a use permit by the Planning
Director, a notice of the decision shall be mailed to the applicant and all owners of property
within three hundred (300) feet of the boundaries of the site. (Ord. 2004 -18 (part), 2004; Ord.
2004 -16 § 8, 2004; Ord. 98 -21 § 1 (part), 1998; Ord. 97 -09 Exh. A (part), 1997)
_:..The 111allmlig Ce-Bligission s, ., 4ei>y -ari
app eao .
ice „ .,
•.
+e 4e+44a
1526 \02\439787.6
DRAFT FOR DISCUSSION PURPOSES
20.91.030 Notice and Public Hearing
A. Public Hearings. The Planning Commission shall hold a public hearing on an application for
a use permit;9r variance,, or ' ederal Exee t on Permit. Public hearings are not required for
applications where the authority for an administrative decision on a use permit is assigned to the
Planning Director.
B. Timing of Hearings. A public hearing shall be held on all use permit7.gr variance,, e a;
ii -ff.
iori-Pei- mit applications, except as otherwise provided in this chapter, within sixty (60)
days after the acceptance of a completed application.
C. Required Notice. Notice of a public hearing or an administrative decision shall be given as
follows:
1. Mailed or Delivered Notice.
a. Residential Districts. At least ten days prior to the hearing or an administrative decision,
notice shall be mailed to the applicant and all owners of property within three hundred (300) feet
of the boundaries of the site, as shown on the last equalized assessment roll or, alternatively,
from such other records as contain more recent addresses. It shall be the responsibility of the
applicant to obtain and provide to the City the names and addresses of owners as required by this
section.
b. Nonresidential Districts. At least ten days prior to the hearing or an administrative decision,
notice shall be mailed to the applicant and all owners of property within three hundred (300) feet,
excluding intervening rights -of -way and waterways, of the boundaries of the site, as shown on
the last equalized assessment roll or, alternatively, from such other records as contain more
recent addresses. It shall be the responsibility of the applicant to obtain and provide to the City
the names and addresses of owners as required by this section.
2. Posted Notice. Notice shall be posted in not less than two conspicuous places on or close to
the property at least ten days prior to the hearing or the administrative decision.
3. Published Notice. Notice shall be published in at least one newspaper of general circulation
within the City, at least ten days prior to the hearing.
D. Contents of Notice. The notice of public hearing or of the decision of the Planning Director
shall contain:
1. A description of the location of the project site and the purpose of the application;
2. A statement of the time, place, and purpose of the public hearing or of the purpose of the
administrative decision;
3. A reference to application materials on file for detailed information;
6
1526 \02\439787.6
DRAFT FOR DISCUSSION PURPOSES
4. A statement that any interested person or authorized agent may appear and be heard at the
planning hearing and an explanation of their rights of appeal in case of an administrative
decision.
E. Continuance. Upon the date set for a public hearing before the Planning Commission, the
Planning Commission may continue the hearing to another date without giving further notice
thereof if the date of the continued hearing is announced in open meeting. (Ord. 2004 -16 § 9,
2004: Ord. 97 -09 Exh. A (part), 1997)
20.91.035 Required Findings
The Planning Commission or the Planning Director, as the case may be, shall approve or
conditionally approve an application for a use permit;" variance, or FedeFal Exce boll °°~ffl:.
if, on the basis of the application, plans, materials, and testimony submitted, the Planning
Commission or the Planning Director finds:
A. For Use Permits.
I. That the proposed location of the use is in accord with the objectives of this code and the
purposes of the district in which the site is located;
2. That the proposed location of the use permit and the proposed conditions under which it
would be operated or maintained will be consistent with the General Plan and the purpose of the
district in which the site is located; will not be detrimental to the public health, safety, peace,
morals, comfort, or welfare of persons residing or working in or adjacent to the neighborhood of
such use; and will not be detrimental to the properties or improvements in the vicinity or to the
general welfare of the city;
3. That the proposed use will comply with the provisions of this code, including any specific
condition required for the proposed use in the district in which it would be located.
B. For Variances.
1. That because of special circumstances applicable to the property, including size, shape,
topography, location or surroundings, the strict application of this code deprives such property of
privileges enjoyed by other property in the vicinity and under identical zoning classification;
2. The granting of the application is necessary for the preservation and enjoyment of substantial
property rights of the applicant;
3. The granting of the application is consistent with the purposes of this code and will not
constitute a grant of special privilege inconsistent with the limitations on other properties in the
vicinity and in the same zoning district;
1526 \02\439787.6
DRAFT FOR DISCUSSION PURPOSES
4. The granting of such application will not, under the circumstances of the particular case,
materially affect adversely the health or safety of persons residing or working in the
neighborhood of the property of the applicant and will not under the circumstances of the
particular case be materially detrimental to the public welfare or injurious to property or
improvements in the neighborhood.
.I., _ 1r`.C'defi:i EXeet366. Pel- .'r Sought ., ' h,,,,J',..pped relate.!
keig ele -Ad be -11—d to a saeb an extent �hat it would he eentFar�f' 10,-Of
•-44e' ci ry 1'c10 Wall. )f0V+ .-0 }4 tile Atka.-.... Reach Mapie pal Code :f R.�
}3': W l3eil3e .. ,
14aL ifFe ilpplieable to other fesidential uses in the fleigghberhE3ad weald he violated.
20.91.040 Conditions of Approval
The Planning Commission or the Planning Director, as the case may be, may impose such
conditions in connection with the granting of a use permit72_r variance, edef i °xeepti
Pem+4 as they deem necessary to secure the purposes of this code and may require guarantees
and evidence that such conditions are being or will be complied with. Such conditions may
include requirements for off - street parking facilities and prohibitions against assembly uses as
determined in each case.
1526 \02 \439787.6
DRAFT FOR DISCUSSION PURPOSES
A. Tile) than the
;+i+i 01 4660ti ant. 9ero.,4ted by +-Ie ..royi.`"o'Hs -."T itle 15 of the Nr,,,,poit L]er...l. n R,.......,...1
131_-_ shall me best ek'- to ensure that the ,+ts dr. not ereate able
rpe!iamillg to noise, ,
"41i ... eilgaged i1i disorderly eenduet eF eefflm4ted violat (44q-4 this; eode 01- !a",
- )ett'al' n r !he eousumpt on _
l"nrncS 4i3fttt 'FF' .t, tO ,.t.
}. . 4..,.i , to ensurL ....7: ,,.. .'Fh alI A. , ,s ,FI :Ne / .F
: 44+et.w-iLffi4tc-e shill- s
tile 4lteti e- it)9 -6 ode (c. .i., r.. o + lse ....,1 r stings),
20.91.045 Effective Date
Use permits:-aud variances and ° °eeptien °°°ffl'ts shall not become effective for
fourteen (14) days after being granted, and in the event an appeal is filed or if the Planning
Commission or the City Council shall exercise its right to review any such decision under the
provisions of Chapter 20.95, the permit shall not become effective unless and until a decision
granting the use permit, 4r variance; or Fed ral E*eeption Peffflit is made by the Planning
Commission or the City Council. (Ord 2004 -16 § 12, 2004: Ord. 97 -09 Exh. A (part), 1997)
20.91.050 Expiration, Time Extension, Violation, Discontinuance, and Revocation
A. Expiration. Any use permit;Q variance, of Vedei' ^l Exeeptiofl Permit granted in accordance
with the terms of this code shall expire within twenty-four (24) months from the effective date of
approval or at an alternative time specified as a condition of approval unless:
1. A grading permit has been issued and grading has been substantially completed; or
2. A building permit has been issued and construction has commenced; or
3. A certificate of occupancy has been issued; or
4. The use is established; or
9
1526 \02 \439787.6
DRAFT FOR DISCUSSION PURPOSES
5. A time extension has been granted.
In cases where a coastal permit is required, the time period shall not begin until the effective date
of approval of the coastal permit.
B. Time Extension. The Planning Director may grant a time extension for a use permit; or
variance, or Federal r°eeption Perm4 for a period or periods not to exceed three years. An
application for a time extension shall be made in writing to the Planning Director no less than
thirty (30) days or more than ninety (90) days prior to the expiration date.
C. Violation of Terms. Any use permit;Qr variance. Or ' edep -a' Exeeption °°•grit granted in
accordance with the terms of this code may be revoked if any of the conditions or terms of such
use permit;Qr variance, or Federal Exeepfiefl ° e• ait are violated or if any law or ordinance is
violated in connection therewith.
D. Discontinuance. A use permit-,=pr variance. or F de l &eept On Pe ' shall lapse if the
exercise of rights granted by it is discontinued for one hundred eighty (180) consecutive days.
E. Revocation. Procedures for revocation shall be as prescribed by Chapter 20.96, Enforcement.
(Ord. 2004 -18 § 13, 2004: Ord. 97 -09 Exh. A (part), 1997)
20.91.055 Amendments and New Applications
A. Amendments. A request for changes in conditions of approval of a use permit;2 variance,
--q cele� a1 I E e}rt t�+r Ps�irrit -or a change to plans that would affect a condition of approval shall
be treated as a new application. The Planning Director may waive the requirement for a new
application if the changes are minor, do not involve substantial alterations or additions to the
plan or the conditions of approval, and are consistent with the intent of the original approval.
B. New Applications. If an application for a use permit;Qx variance, eF Federal gxeepti�
F er+rr is disapproved, no new application for the same, or substantially the same, use permit;
variance. Pe j- ' ,. a ..,t:„., Permit shall be filed within one year of the date of denial of the
initial application unless the denial is made without prejudice. (Ord. 2004 -16 § 14, 2004: Ord.
97 -09 Exh. A (part), 1997)
20.91.060 Rights of Appeal
A. Appeals. Decisions of the Planning Director may be appealed to the Planning Commission
and decisions of the Planning Commission may be appealed to the City Council.
B. Procedures. Procedures for appeals shall be as prescribed by Chapter 20.95, Appeals. (Ord.
2004 -18 (part), 2004: Ord. 97 -09 Exh. A (part), 1997)
10
1526 \02 \439787.6
DRAFT FOR DISCUSSION PURPOSES
Chapter 20.92
SITE PLAN REVIEW [NOT INCLUDED[
11
1.526 \02 \439787,6
DRAFT FOR DISCUSSION PURPOSES
Chapter 20.93
MODIFICATION PERMITS
Sections:
Note to Chapter 20.93
20.93.010
Purpose.
20.93.015
Authority.
20.93.020
Application for a Modification Permit.
20.93.025
Notice and Public Hearing.
20.93.030
Required Findings.
20.93.035
Duties of the Zoning Administrator.
20.93.040
Conditions of Approval.
20.93.045
Effective Date.
20.93.050
Expiration, Time Extension, Violation, Discontinuance, and Revocation.
20.93.055
Amendments and New Applications.
20.93.060
Rights of Appeal.
Note to Chapter 20.93
* Prior ordinance history: Ords. 2004 -18, 2001 -18, 98 -21, 97 -09.
20.93.010 Purpose
This Chapter provides administrative relief through a Modification Permit for certain
development proposals where there is a practical difficulty or physical hardship. This article
achieves the purposes of this code by establishing procedures for approval, conditional approval
and disapproval for a Modification Permit. Additionally, this Chapter establishes procedures for
the administration of minor discretionary items where the authority is assigned to the Zoning
Administrator by the individual chapters of the Municipal Code or by action of the Planning
Commission or City Council. (Ord. 2004 -25 § 1 (Exh. A (part)), 2004)
20.93.015 Authority
A. Modification Permits. The Zoning Administrator shall approve, conditionally approve, or
disapprove applications for Modification Permits relating to the following code provisions,
subject to the submitted application, plans, materials, and testimony and findings in Section
20.93.030:
1. Required building setbacks in front, side or rear yards;
2. Heights of walls, hedges or fences;
12
i 526 \02A39787.6
DRAFT FOR DISCUSSION PURPOSES
3. Distances between buildings;
4. Area, number and height of signs not requiring an exception permit or limited by Planned
Community District regulations;
5. Roof signs and off -site signs in accordance with Chapter 20.67;
6. Structural appurtenances or projections which encroach into front, side or rear yards;
7. Location of accessory buildings on a site; the construction or installation of chimneys, vents,
rooftop architectural features and solar equipment in excess of permitted height limits;
8. Size or location of parking spaces or access to parking spaces;
9. Swimming pool and swimming pool equipment encroachments;
10. Roof parking of automobiles in nonresidential districts; and
11. Minor modifications and improvements to nonconforming buildings.
B. Other Applications. The Zoning Administrator may approve, conditionally approve, or
disapprove the following applications, subject to the submitted application, plans, materials, and
testimony and applicable findings in the referenced sections of the Municipal Code:
1. Lot line adjustments, in accordance with Chapter 19.76 of Title 19 (Subdivision Code);
2. Tentative parcel maps, in accordance with Chapter 19.12 of Title 19 (Subdivision Code);
3. Condominium conversions involving four or less units, via approval of a tentative parcel map
in accordance with Chapter 20.83 and Title 19 (Subdivision Code); and
4. Such items as may be subsequently set forth by the Planning Commission resolution, subject
to a confirming resolution by the City Council. The Zoning Administrator shall also pass upon
all requests to extend existing use permits which have been approved by the Planning
Commission and exercised by the applicant. (Ord. 2004 -25 § 1 (Exh. A (part)), 2004)
20.93.020 Application for a Modification Permit
A. Procedure. An application for a modification permit shall be filed and processed in a manner
consistent with the requirements contained in Chapter 20.90: Application Filing and Fees.
B. Required Plans and Materials. An application for a modification permit shall be
accompanied by the following:
13
1526\02 \439787.6
DRAFT FOR DISCUSSION PURPOSES
1. Plot plans showing all property lines, structures, parking, driveways, other major
improvements or facilities and landscaped areas.
2. Elevations of all proposed structures.
3. Other plans such as floor plans as may be required by the Planning Director to assure a proper
consideration of the application.
4. In the case of a lot line adjustment, the materials described in Chapter 19.76 of Title 19
(Subdivision Code).
5. In the case of a tentative parcel map, the map and other materials described in Title 19
(Subdivision Code). (Ord. 2004 -25 § 1 (Exh. A (part)), 2004)
20.93.025 Notice and Public Hearing
A. Tentative Parcel Maps. Notwithstanding other provisions of this Section, notice and hearing
procedures for tentative parcel maps shall be as specified in Chapter 19.08 of Title 19
(Subdivision Code).
B. Time of Hearing. Upon receipt of a complete application, a time and place for a public
hearing shall be scheduled according to the provisions set forth in Chapter 20.90.
C. Required Notice.
1. Mailed or Delivered Notice.
a. Residential Districts. At least ten days prior to the hearing, notice shall be mailed to the
applicant and all owners of property within three hundred (300) feet of the boundaries of the site,
as shown on the last equalized assessment roll or, alternatively, from such other records as
contain more recent addresses. It shall be the responsibility of the applicant to obtain and provide
to the City the names and addresses of owners as required by this section.
b. Nonresidential Districts. At least ten days prior to the hearing, notice shall be mailed to the
applicant and all owners of property within three hundred (300) feet, excluding intervening
rights -of -way and waterways, of the boundaries of the site, as shown on the last equalized
assessment roll or, alternatively, from such other records as contain more recent addresses. It
shall be the responsibility of the applicant to obtain and provide to the City the names and
addresses of owners as required by this section.
2. Posted Notice. Notice shall be posted in not less than two conspicuous places on or close to
the property at least ten days prior to the hearing.
D. Contents of Notice. The notice of public hearing shall contain:
14
1526 \02 \439787.6
DRAFT FOR DISCUSSION PURPOSES
1. A description of the location of the project site and the purpose of the application;
2. A statement of the time, place, and purpose of the public hearing;
3. A reference to application materials on file for detailed information; and
4. A statement that any interested person or authorized agent may appear and be heard.
E. Continuance. Upon the date set for a public hearing before the Zoning Administrator, the
Zoning Administrator may continue the hearing to another date without giving further notice
thereof if the date of the continued hearing is announced in open meeting. (Ord. 2004 -25 § 1
(Exh. A (part)), 2004)
20.93.030 Required Findings
The Zoning Administrator may approve or conditionally approve a modification permit if, on the
basis of the application, plans, materials, and testimony submitted, the Zoning Administrator
finds all of the following:
A. The granting of the application is necessary due to practical difficulties associated with the
property and that the strict application of the Zoning Code results in physical hardships that are
inconsistent with the purpose and intent of the Zoning Code.
B. The requested modification will be compatible with existing development in the
neighborhood.
C. The granting of such an application will not adversely affect the health or safety of persons
residing or working in the neighborhood of the property and will not be detrimental to the
general welfare or injurious to property or improvements in the neighborhood. (Ord. 2004 -25 §
(Exh. A (part)), 2004)
20.93.035 - Duties of the Zoning Administrator
A. Investigation. The Zoning Administrator shall investigate each application to assure that the
proposal is consistent with the intent and purpose of this chapter, all applicable regulations and
policies, and sound planning practices. The Zoning Administrator shall refer each application to
the Building Department and Public Works Department, and to other city departments as needed.
Each department shall make written recommendations to the Zoning Administrator.
B. Rendering of Decision. After the conclusion of the hearing on any application for a
modification permit, the Zoning Administrator shall render a decision within fifteen (15) days
unless both the applicant and the Zoning Administrator consent to a later date.
15
1526 \02 \439787.6
DRAFT FOR DISCUSSION PURPOSES
When addressing the finding in Section 20.93.030(A), the Zoning Administrator may consider
the physical aspects of the property and/or improvements and their relationship to adjacent
properties.
In addressing the finding in Section 20.93.030 (B), the Zoning Administrator may consider the
sum of qualities that distinguish the neighborhood from other areas within the City. However, the
Zoning Administrator may only consider such characteristics as they relate to direct impact of
the proposed modification on the neighborhood's character and not development rights that
would otherwise be enjoyed without the Modification Permit.
In addressing the finding in Section 20.93.030 (C), the Zoning Administrator may consider the
potential adverse impacts on persons or property in the vicinity. These include, but are not
limited to, modifications that would significantly interfere with provision of adequate air and
light on an adjacent property, adversely impact use of a public right -of -way, impede access by
public safety personnel, result in excessive noise, vibration, dust, odors, glare, or electromagnetic
interference, interfere with safe vehicular sight distances, or result in a substantial invasion of
privacy.
C. Referral to Planning Commission. In the event the Zoning Administrator determines that an
application should properly be heard by the Planning Commission, the Zoning Administrator
may refer the matter to the Planning Commission for hearing and original determination on the
merits. The procedure for notice and hearings held by the Planning Commission on such
applications shall be in accordance with the same provisions as set forth in this chapter.
D. Administrative Act. The granting of any modification permit, when conforming to the
provisions of this code, is hereby declared to be an administrative function, the authority and
responsibility for performing which is imposed upon the Zoning Administrator. The action
thereon by the Zoning Administrator shall be construed as administrative acts performed for the
purpose of assuring that the intent and purpose of this code shall apply in special cases, as
provided in this section, and shall not be construed as amendments to the provisions of this code
or the districting map of the City.
E. Meetings. The Zoning Administrator shall hold at least one regular meeting each month and
may hold special meetings as necessary. (Ord. 2004 -25 § I (Exh. A (part)), 2004)
20.93.040 Conditions of Approval
The Zoning Administrator may impose such conditions in connection with the granting of a
modification permit as they deem necessary to secure the purposes of this code and may require
guarantees and evidence that such conditions are being or will be complied with. (Ord. 2004 -25
§ I (Exh. A (part)), 2004)
16
1526 \02 \439787.6
DRAFT FOR DISCUSSION PURPOSES
20.93.045 Effective Date
No permit or license shall be issued for any use or property modification until the decision shall
have become final by reason of the expiration of time to make an appeal, which for purposes of
modification permits shall be within fourteen (14) eFdays after the date of the Zoning
Administrator's decision. In the event an appeal is filed, the modification permit shall not
become effective unless and until a decision is made by the Planning Commission on such
appeal, under the provisions of Chapter 20.95. No permit or license shall be issued for any use or
property modification until the decision shall have become final by reason of the expiration of
time to make an appeal. (Ord. 2004 -25 § 1 (Exh. A (part)), 2004)
20.93.050 Expiration, Time Extension, Violation, Discontinuance, and Revocation
A. Expiration. Any modification permit granted in accordance with the terms of this code shall
expire within twenty -four (24) months from the effective date of approval or at an alternative
time specified as a condition of approval unless:
1. A grading permit has been issued and grading has been substantially completed;
2. A building permit has been issued and construction has commenced;
3. A certificate of occupancy has been issued;
4. The use is established; or
5. A time extension has been granted.
In cases where a coastal permit is required, the time period shall not begin until the effective date
of approval of the coastal permit.
B. Time Extension. The Planning Director may grant a time extension for a modification permit
for a period or periods not to exceed three years. An application for a time extension shall be
made in writing to the Planning Director no less than thirty (30) days or more than ninety (90)
days prior to the expiration date.
C. Violation of terms. Any modification permit granted in accordance with the terms of this
code may be revoked if any of the conditions or terms of such modification permit are violated,
or if any law or ordinance is violated in connection therewith.
D. Discontinuance. A modification permit shall lapse if the exercise of rights granted by it is
discontinued for one hundred (180) consecutive days.
E. Revocation. Procedures for revocation shall be as prescribed by Chapter 20.96: Enforcement.
(Ord. 2004 -25 § 1 (Exh. A (part)), 2004)
17
1526 \02 \439787.6
DRAFT FOR DISCUSSION PURPOSES
20.93.055 Amendments and New Applications
A. Amendments. A request for changes in conditions of approval of a modification permit, or a
change to plans that would affect a condition of approval shall be treated as a new application.
The Planning Director may waive the requirement for a new application if the changes are minor,
do not involve substantial. alterations or addition to the plan or the conditions of approval, and
are consistent with the intent of the original approval.
B. New Applications. If an application for a modification permit is disapproved, no new
application for the same, or substantially the same, modification permit shall be filed within one
year of the date of denial of the initial application unless the denial is made without prejudice.
(Ord. 2004 -25 § 1 (Exh. A (part)), 2004)
20.93.060 Rights of Appeal
A. Appeals. Decisions of the Zoning Administrator may be appealed to the Planning
Commission and decisions of the Planning Commission may be appealed to the City Council.
B. Procedures. Procedures for appeals shall be as prescribed by Chapter 20.95: Appeals. (Ord.
2004 -25 § 1 (Exh. A (part)), 2004)
18
1526102W39787.6
DRAFT FOR DISCUSSION PURPOSES
Chapter 20.94
AMENDMENTS [NOT INCLUDED]
19
1526 \02\439787.6
DRAFT FOR DISCUSSION PURPOSES
20
1526 \02\439787.6
DRAFT FOR DISCUSSION PURPOSES
X20.95
APPEALS [NOT INCLUDED]
21
1526 \02 \439787.6
DRAFT FOR DISCUSSION PURPOSES
Chapter 20.96
ENFORCEMENT [NOT INCLUDED]
22
15261021439787.6
DRAFT FOR DISCUSSION PURPOSES
Sections:
20.98 .015 �
20.98.020 Auh. .8
20.98.030 Decision.
20,98 ,035 . .n
20.98.040 Ministerial Approval of Reasonable Accommodation For Unlicenacd
Small .._.
20.98.045 Expiration, Tim Exten5ion. Violation, Discontinuance. —and Revocation.
20.98.0 50 :n ndn
disability egual opportunity . - . . . . n n. .� on—the
.. . disability. —
A Fair Housing aw The Federal Fair Housing Act the Americans with Disabilities Act and
alifornia's Fair Employment and Housing Act, as each Act may be-amended from time to time,
and each Act's implementing regulations.
B Individual with a Disability As more specifically defined under the fair housing laws, a
person who has a physical or mental impairment that limits one or more maior life activities.
anyone who is regarded as having that tune of impairment or anyone who has a record of that
type of impairment and does not include current illegal use of a controlled substance.
B. Other Requests for Reasonable . ... . n. Jhc Zoning Administrator may approve,
conditionallv al2pmve, or . er api2lications for .r.. accommodation unlos
otherwise provided 1.8. . .
23
1526 \02 \439787.6
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:fzl 1 :-.. IJ..1 11111. 1 r !rl 11 1 1 1- 111.111. rl
1 1 1 1! - J. 1 1. 1 Off M—MMINUMMrs r l 1 /
" 111 1 . I - . 1 - 1 � I t 11 1 1 - 1 . - ' • / - 1 . 1 11 - 1 ! 1 1 r r
1 •. 1 1- 'r - -1 e 1 • 1" - 1r" 1 1 1" 1 11 1• 1_ !1 11 IWA IIII .- 11MIAMINW.
2. Other Discretionary Permits. If the pr-Qject for which the request for reasonable
accommodation is made requires another discretionary permit or approval, then the anplicant
shall, to the maximum extent feasible, file the request for reasonable accommodation together
appeal procedures-p�Jorthc other discretionary / -111 • 11 the notice, approval and
appeal procedures of this chapter 20.
B. Required Submittals. In addition to materials "1 1 under other applicable l2rovisionS 1
this Code, an application for 1 1• r - accommodation shall include ft
1. Documentation that the applicant 1 a disability 1 applying 1 behalf 1
individual an 1! disability, 1 dtytioacLorproyider of 1 for individual 1 1
specific 2. The - / 11 or 11 1 1 the Zoning Code requested by thtavplkanta—nd
1 1 . 11 " 1 1 1! !� " 1 1� 1 1 1 1 1 1" 1 1 1 1- 1- 1 1 1•
1 1 _ A• !! "r Irr111 1 1 r '1 1 J.- 1-1 Oil
A. Time to Act. The Zoning Administrator shall issue a written determination to either grant,
grant with modifications. or deny a request for reasonable accommodation within 45 days ofthe
date the application is deemed complete, or within an extended period as mutually agreed upon
in writing by the applicant and the Zoning Administrator.
complies with the fair housing law protections and the privacy rights of the individual wither
disability to use the specified housing If additional information is requested, the 45 -day time
period for making a determination on the request stops running until the additional information is
provided.
C. Findings_ Findings shall not be required for a ministerial approval of a reasonable
111111(• 11 muff i." - ms i / 11 1•
24
1526 \02 \439787.6
DRAFT FOR DISCUSSION PURPOSES
1. that the housing, which is the subject of the request for reasonable accommodation, will be
used by an individual with a disability protected under the fair housing laws:
2. that the requested accommodation is necessary to make housing - available to an individual
with a disability protected under the fair housing laws
4. that the reauested accommodation[
would not
require a fundamental
alteration in the nature of
] ..... +r•ahe City's
and intemretive case law.
zoning
program,
as such term
is defined in fair housing laws
D. Coastal Zone Properties. For housing located in the Coastal Zone. a request £or reasonable
with the lntemretative Guidelines for Coastal Planning and Permits as established by the
California Coastal Commission dated February 11. 1977. and any subsequent amendments ansl
the Local Coastal Prog.
ram
Where a request for reasonable accommodation is not con -i -tent with the regulations identified
in the par eraoh above. the Citym_av waive compliance with an othe»wise annlicable nrovisio
of these regulations and annrQv She-mttuest for reasonable accommodation if the Citv find
1. that the requested reasonable accommodation is consistemt.�_o_ th_ a m_ aximum extent feasible.
ith the regulations identified in this subsection: and.
2. that there are no feasible alternative means for providing a reasonable accommodation that
would provide greater consistency with the regulation- identified in this subsection
E. Rules While Decision is Pending. While a request for reasonable accommodation is pendim
all laws and regulations otherwise applicable to the property that is the subject of the reoues
shall remain in full force and effect.
20.98.035 Notice of Decision and Anneal
A Notice In the event that there is no approval currently sought other than the request for
reasonable accommodation notice of the determination shall be provided to the applicant and to
property that would abut the subject property if the existence of a street or alleyway is
disregarded All written decisions shall give notice of the right to anneal and to reauect
reasonable accommodation in the anneals process as set -forth in Paragraph B below.
B. Anneal of Determination. A reasonable accommodation determination by the Zoning
Administrator shall be final unless annealed to the Planning Commission within 15 calendar days
of the date of mailing of the determination The aggrieved applicant abutting owners who
received notice of the reasonable accommodation determination or a member of the Planning
25
1526 \02 \439787.6
DRAFT FOR DISCUSSION PURPOSES
Commission may anneal the decision An anneal shall be made in writing pursuan t to
procedures established in Section 20.95-060 of this Code
C. Effective Date. No permit or license shall be issued foLany reasonable accommodation until
the decision shall have become final by reason of the expiration of tim_ a to make an appeal. In the
event an anneal is filed- the reasonable accommodation shall not become effective unless and
u l" decision is made by the Planning Commission on such appeal, under the provisions of
Chapter 20.95. No permit or license shall he issued for any use or property modification until the
decision shall have becomes final by reason of the expiration of time to make an anneal.
ministerial approval if the
group residence meets the standards set forth below. The Zoning
Administrator may impose
conditions of approval to ensure continued compliance with such
standards. Ministerial approvals
pursuant to this Section 20.98_0_4_Tshall noLb - subiect to the
notice and appeal provisions
of Section 20 98 035 except that any member of the Planning
Commission may anneal an
approval if such member asserts that the Zoning Administ a-t-QL ias
made a clear error in application
of the standards below. Facilities that do not meet the standards
set forth below, or which
are found by the Zoning Administrator not to meet such standards.
m v a my for reasonable accommodation under Section 20.98.020B.
A. Sober Living Home. If
the group residential facility is or will be operated as a cooperative
living arrangement for no
more than six (6) occupants to provide an alcohol- and drug -free
environment for persons recovering
from alcoholism or drug_abuse. or both. who seek a living
environment in which to remain
clean and sober, the facility shall meet the following operational
st udard
1 The facility is not operated
as part of an integral facility as defined in Section 20.03.030 of
this Code, serving more than
six (6) occupants.
2. Residents of the facility,
including live -in managers operator, or owners, are living a sober
lifestyle and the facility qualifies
as a sober living home pursuant to a definition if any. adopted
by the State of California
and the facility has received or will receive certification by Orange
County under its Adult Alcohol
and Drug Sober Living Facilities Certification Program or by the
City pursuant to a comparable
certification program that may be adopted by the Citv
3 Ue facility is not required to be licensed by the State of Califomia. and owners managers
operators and residents do
not provide any onsite services including without limitation
detoxification educational
counseling individual or group counseling or treatment or recovery
planning, which would require
licensure of the facility under California law.
26
1526\02W39787.6
DRAFT FOR DISCUSSION PURPOSES
4. No resident reguimaxon- medical care ors 1Pervision_ as those terms are defined in Section
1503.5 and Paragraph (3) of subdivision (a) of Section 80001 of Title 22 of the California Code
of Regulations.
5. The facilitv is not a parolee- probationer home.
6. The operator of the residential facility hQlds a b 1 iness license provided by the City.
7 The names of all persons and entities with an ownership or master leasehold interest in the
facility, or who will participate in operation or management of the facility, are disclosed in
writing to the City, and such persons and entities don not have a pattern or practice of operating
similar facilities in violation of state or local law.
8. The operator of the residential facility provides a list of the addresses of all similar facilities
in the State of California owned or operated by the operator certifies under Penalty of Periury
that none of such facilities have been found by state-ox-local authorities to be operating in
violation of state or local law, and such certification is verified by the Zoning Administrator.
' • JI-
Millm
B. Other Small Group Residential Homes to be Occupied bY Individuals with Disabilities. If the
group residence is or be 11" "1 as a cooperative . no more than six
1 persons 1 disabilities, and it is nQt . I' bome, the residencc shall meet the
1 . 11. . —
1. The facility is not operated as part of an integral facility. as defined in Section 20.03.030 of
this Code. serving more than six (6) occupants
2. The facility is not required to be licensed by the State of California, and ovmers- managem
operators, and residents do not brovide onsite any services which would require licensure of the
facility under California law.
- s _ 1 1 . , ! . - 1. 1 11 • 1 - 1 1 - I - 1 . 1 - • 1 sl*MW WoRwo 1
Mg
1 e11 .. .• Y..I 1 .. 11 1
11 :111
1
1 1-
1 1.-
5 The facility is not a parolee - probationer home.
6. The werator of the residential facility holds a- business licen_ e Provided by the City.
7. The names of all persons and entities with an ownership or leasehold interest in the �
or who will participate in operation of the facility are disclosed in writing to the City, and sus
27
1526 \02 \439787.6
DRAFT FOR DISCUSSION PURPOSES
8. The operator of the residential facility provides a list of the addresses of all similar facilities
in the State of California owned or operated by the operator- certifies under penalty of penury
that none of such facilities have been found by state or local authorities to be operating in
violation of state or local law. and such -c-ert4 fication is verified by the Zoning Administrator.
temadve time specified as a condition of approval unless:
2. A certificate of occupancy has been issued-
3. The use is established: or
4. A time extension has been granted.
In cases where a coastal permit is required the time period shall not begin until the effective date
of approval of the coastal Hermit.
B Time Extension The Planning Director may grant a time extension for a reasonable
accommodation for a period or periods not to exceed three years An application for a time
all be made in writing to the Planning Director no less than thirty (301 days or more
than ninety (90) days prior to the expiration date.
C Violation of terms Any reasonable accommodation granted in accordance with the terms of
this code may be revoked if any of the conditions or terms of such reasonable accommodation
are violated or if any law or ordinance is violated in connection therewith
D Discontinuance
A reasonable accommodation
shall lapse if the exercise
of rights granted by
it is discontinued for
one hundred eighty
(180) consecutive days. If the
persons initially
occu_nvina a residence
vacate the reasonable
accommodation shall remain
in effect only if the
Planning Director determines
that (1) the modification is physically integrated
into the residential
structure and cannot
easily be removed
or altered to comply with the
Code or (21 the
accommodation is to
he used by another
individual with a disabilitv.
The Planting Director may
request the applicant or his/her successor
in interest to the property to
Drovide documentation
that Sequent occunan
s are persons
with disabilities. Failure to provide
such documentatio
28
1526 \02 \439787.6
DRAFT FOR DISCUSSION PURPOSES
within ten (10) days of the date of a request by the City shall constitute grounds for
discontinuance by the City of a previously granted reasonable accommodation
E Revocation Procedures for revocation shall be as prescribed by Chanter 20.96: Enf
[NOTE: 20.96.040 needs to be modified to include reasonable accommodation anorov_al.l
A request for changes in conditions of approval of a reasonable accommodation or a change to
plans that would affect a condition of approval shall be treated as a new application. The
Planning Director may waive the requirement for a new annlicati n if the changes are minor, do
not involve substantial alterations or addition to the plan or the conditions of approval, and are
consistent with the intent of the original approval.
29
1526\02\439787.6
Short Term Lodging r
Permit Locations c�
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10-K 1 d10k.htm FORM 10-K. 00% Oli ac I�
bl of en's =*J IF #A Ra"0JU
C bS t �k t
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10 -K
I
9/o 7a,--iG
4V el `// %G-�
'q" Yz 0 �
(Mark One)
X ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
For the fiscal year ended: December 31, 2006
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the transition period from to
Commission file number 333 - 135172
CRC HEALTH
CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
73- 1650429
(State or other jurisdiction of
(LP-S. Employer
incorporation or organization)
Identification No.)
20400 Stevens Creek Boulevard;
Suite 600, Cupertino,California
95014
(Address of principal executive offices)
(Zip code)
(877) 272 -8668
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act: None
Securities, registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well -known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ❑ No O
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ❑ No
Indicate by check mark whether the registrant (1) has fried all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to File such reports), and (2) has
been subiect in such filino rnn..iwm nh f— the nn a,..... v__ rs
'i
�es7�n
C�
ZV NS N
IZIE6.vL*-t0A
Municipal and other local governments may also regulate our treatment programs.
and land use requirements in order to operate. For example, local zoning authorities reg
such as
areas.
also the location and
of our facilities must comply with zoning
R only the physical properties ot a hea
n community or political objections to the
,event the operation of facilities in certain
Our treatment facilities are sometimes subject to attempts by local or regional governmental authorities and local area residents to force
their closure or relocation.
Property owners and local authorities have attempted, and may in the future attempt, to use zoning ordinances to eliminate our ability
to operate a given treatment facility by claiming that the program violates existing ordinances, rezoning or adopting new ordinances. oca
governmental authorities in some cases have attempted to use litigation and the threat of prosecution to force the closure of certain of our
clinics. If any of these attempts were to succeed or if their frequency were to.increase, our revenue would be adversely affected and our
operating results might be harmed.
Changes to federal, state and local regulations affecting the operation of our treatment facilities could prevent us from operating our
existingfacilities or acquiring additional facilities, which may cause our growth to be restrained and our operating results to be adversely
' affected.
. Federal, state and local regulations determine the capacity at which our therapeutic education programs for adolescents may be
,operated. Some of our programs in our youth treatment division rely on federal land -use permits to conduct the hiking, camping and
ranching aspects of these programs. State licensing standards require many of our programs to have minimum staffing levels, minimum
amounts of residential space per student and adhere to other minimum standards. Local regulations require us to follow land use guidelines
at many of our programs, including those pertaining to fire safety, sewer capacity and other phvsical plant matters. In addition,. federal, stag
,ulations may be enacted that impose additional requirements on our facilities. For example, in the 2007 legislative session,
I assemblymen from the state of California, introduced numerous bills that would impose new regulations on our operations in
kdoption of legislation or the creation of new regulations affecting our facilities could increase our operating costs, restrain our
harm our operating results.
Changes in state 'and federal regulation and in the regulatory environment, as well as different or new interpretations of existing
regulations, could adversely affect our operations and profitability.
Since our treatment programs and operations are regulated at federal, state and local levels, we could be affected by different
regulatory changes in different regional markets. Increases in the costs of regulatory compliance and the risks of noncompliance may
increase our operating costs, and we may not be able to recover these increased costs, which may adversely affect our results of operations
and profitability.
C d N7 V:t�L F= NO% A L
Funds associated with Bain Capital Partners, LLC control us and may have conflicts of interest with us-
Investment funds associated with or designated by Bain Capital Partners LLC which we refer to as Bain Capital indirectly own,
through their ownership in our parent company, substantially all of our capital s .:® ., ® So long as investment funds,
associated with or designated by Bain Capital continue to indirectly own a significant amount of the outstanding shares of our common
stock, even if such amount is less than 50 %, Bain Capital will continue to be able to strongly influence or effectively control our, decisions.
We have a limited history of prof:iability, have incurred net losses in the past and may incur' substantial net losses in the future.
We began operations in August 2002, and our predecessor organizations began operations in September 1995 - In 2002 and 2003, we
recorded a net loss from continuing operations of approximately $11.5 million and $1.6 million, respectively- For the year ended
December 31, 2006, we recorded a net loss of approximately $35 -5 million. We recorded a net profit in 2004 and 2005, but we cannot
assure you that we will operate profitably in the future- In addition, we may experience significant quarter -to- quarter variations in operating
results -
0 Our level of indebtedness could adversely affect our ability to meet our obligations under our indebtedness, raise additional capital to fund
our operations and limit our ability to react to changes in the economy or our industry.
We are highly leveraged- The following chart shows our level of indebtedness, and certain other information as of December 31, 2006
(in thousands)-
Senior Secured Credit Facility(')
Senior Subordinated Notes
Other
Total Debt
Total Stockholder's Equity -
Is
l^ 2 Vv o \doe— met v �—F
r
�c�l T 6 s l3 c ES
$ 421,827
197,295
7,406
$ 626,528
$ 437,174
'IWcl �,j
-7 bZ LfZ 9
Lfoo
� (� (03,0 ,�
Table of Contents
Consolidating Balance Sheet as of December 31, 2006 (Successor)
,ffin thousands)
CRC Subsidiary
Realth Subsidiary Non -
Corporation Guarantors Guarantors Eliminations Consolidatrd
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$ -
$ 4,167
$ 39
$ -
$ 4,206
Accounts receivable --net of allowance
4
33,309
492
33,805
Prepaid expenses
3,977
3,676
22
7,675
Other current assets
152
2,096
13
2,261
Income taxes receivable
6,110
386
6,496
Deferred income taxes
5,873
1,179
7,052
Total current assets
16,116
44,813
566
-
61,495
PROPERTY AND EQUIPMENT -Net
4,258
89,835
883
94,976
GOODWILL
702,425
i 702,425
INTANGIBLE ASSETS -Net
43
400,671
400,714
OTHER ASSETS
26,953
2,205
20
29,178
INVESTMENT IN SUBSIDIARIES -At cost
577,739
577,739)
TOTAL ASSETS
$ 625,109
$1,239,949
$ 1,469
$ (577,739
$ 1,288,788
LIABILITIES AND STOCKHOLDER'S
EQUITY
CURRENT LIABILITIES:
Accounts payable
$ 3,990
$ 2,662
$ 62
$ -
$ 6,714
Accrued liabilities
13,473
20,544
810
34,827
Current portion of long -term debt
7,793
2,950
10,743
Other current liabilities
332
27,215
394
27,941
Total current liabilities
25,588
53,371
1,266
-
80,225
LONG -TERM DEBT -Less current portion
611,329
4,456
615,785
OTHER LONG -TERM LIABILITIES
90
5,436
5,526
DEFERRED INCOME TAXES
109,992
39,835
149,827
Total liabilities
746,999
103,098
1,266
-
851,363
MINORITY INTEREST
66
185
251
STOCKHOLDER'S EQUITY:
Common stock
Additional paid -in capital(')
(118,916)
1,130,185
122
(577,739)
433,652
(Accumulated deficit) retained earnings
2,974)
6,600
104)
3,522
Total stockholder's equity
121,890)
1,136,785
18
(577,739)
"M 437,174
TOTAL LIABILITIES AND STOCKHOLDER'S
EQUITY $ 625,109 $1,239,949 $ 1,469 $ 577,739) $ 1,288,788
(1) Includes intercompany balances
77
Table of Contents
Consolidating Balance Sheet as of December 31, 2006 (Successor)
. n thousands)
CRC
Subsidiary
Health
Subsidiary
Non -
Corporation
Guarantors
Guarantors
Eliminations
Coosotidated
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$ -
$ 4,167
$ 39
$ -
$ 4,206
Accounts receivable -net of allowance
4
33,309
492
33,805
Prepaid expenses
3,977
3,676
22
7,675
Other current assets
152
2,096
13
2,261
Income taxes. receivable
6,110
386
6,496
Deferred income taxes
5,873
1,179
7,052
Total current assets
16,116
44,813
566
-
61,495
PROPERTY AND EQUIPMENT -Net
4,258
89,835
883
94,976
GOODWILL
702,425
i 702,425
INTANGIBLE ASSETS -Net
43
400,671
rid 400,714
OTHER ASSETS
26,953
2,205
20
29,178
INVESTMENT IN SUBSIDIARIES -At cost
577,739
(577,739)
TOTAL ASSETS
$ 625,109
$1,239,949
$ 1,469
$ (577,739)
$ 1,288,788
LIABILITIES AND STOCKHOLDER'S
EQUITY
CURRENT LIABILITIES:
Accounts payable
$ 3,990
$ 2,662
$ 62
$ -
$ 6,714
Accrued liabilities
13,473
20,544
810
34,827
Current portion of long -term debt
7,793
2,950
10,743
Other current liabilities
332
27,215
394
27,941
Total current liabilities
25,588
53,371
1,266
-
80,225
LONG -TERM DEBT - --Less current portion
611,329
4,456
615,785
OTHER LONG -TERM LIABILITIES
90
5,436
5,526
DEFERRED INCOME TAXES
109,992
39,835
149,827
Total liabilities
746,999
103,098
1,266
-
851,363
MINORITY INTEREST
66
185
251
STOCKHOLDER'S EQUITY:
Common stock
Additional paid-in capital(')
(118,916)
1,130,185
122
(577,739)
433,652
(Accumulated deficit) retained earnings
2,974)
6,600
104)
3,522
Total stockholder's equity
121,890)
1,136,785
18
577,739)
� 437,174
TOTAL LIABILITIES AND STOCKHOLDER'S
EQUITY
$ 625,109
$1,239,949
$ 1,469
$ (577,739)
$ 1,288,788
(1) Includes intercompany balances
77
Intangible assets at December 31, 2006 and 2005 consist of the following (in thousands)
63
Amortization
Lives
2006
2005
(Successor)
(Predecessor)
Intangible assets subject to amortization:
Referral network
20 years
$ 45,400
$ —
Accreditations
20 years
24,400
—
Curriculum
20 years
9,000
Government, including Medicaid, contracts
15 years
35,600
4,090
Managed care contracts
10 years
14,400
—
Core developed technology
5 years
2,704
2,500
Covenants not to compete
3 years
152
200
Registration rights
2 years
200
200
Student contracts
I year
2,241
—
Less: accumulated amortization
4,929)
(688)
Total intangible assets subject to amortization
129,168
6,302
Intangible assets not subject to amortization:
Trademarks and trade names
183,725
23,400
Certificates of need
44,600
18,006
Licenses
43,221
12,300
Total intangible assets not subject to amortization
271,546
53,706
Total intangible assets
$ 400,714
$ 60,008
Amortization expense of intangible assets subject to amortization was $4.9 million, $0.02 million,
$0.3 million and $ 0.2 million for
the eleven months ended December 31, 2006, one month ended January 31, 2006 and the years ended December 31, 2005 and 2004,
respectively.
Estimated future amortization expense related to the amortizable intangible assets at December 31,
2006 is as follows
(in thousands):
Fiscal Year
2007
$ 10,421
2008
8,318
2009
8,293
2010
8,293
2011
7,798
Thereafter
86,045
Total
$129,168
63