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HomeMy WebLinkAbout08 - Extension of Waiver of Fees for the Permitting of Accessory Dwelling Units (PA2022-037)Q �EwPpRT CITY OF s NEWPORT BEACH `q44:09 City Council Staff Report November 29, 2022 Agenda Item No. 8 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Seimone Jurjis, Community Development Director - 949-644-3232, sjurjis@newportbeachca.gov PREPARED BY: Jaime Murillo, AICP, Principal Planner jmurillo@newportbeachca.gov PHONE: 949-644-3209 TITLE: Resolution No. 2022-86: Extension of Waiver of Fees for the Permitting of Accessory Dwelling Units (PA2022-037) /_1 16"t I:7_\;91 6 For the City Council's consideration is a resolution (Attachment A) extending the temporary waiver of City of Newport Beach (City) building construction permit and plan check fees directly related to the development of an Accessory Dwelling Unit (ADU) or a Junior Accessory Dwelling Unit (JADU). On April 27, 2021, the City Council established the pilot program waiving fees in support of Council Policy K-4 (Reducing the Barriers of the Creation of Housing) and to encourage increased production of ADUs and JADUs to help meet the City's Regional Housing Needs Assessment (RHNA) allocation of 4,845 units of varying affordability. The fee waiver extension will complement other new City programs intended to promote and facilitate ADU development, including website enhancements and pre -approved plans anticipated to be rolled out early next year. RECOMMENDATION: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Adopt Resolution No. 2022-86, A Resolution of the City Council of the City of Newport Beach, California, Extending the Temporary Waiver of Building Plan Check, Building Construction Permit, and Other City Permit Fees Directly Related to the Design and Construction of Accessory Dwelling Units and Junior Accessory Dwelling Units. DISCUSSION: At the February 9, 2021, City Council Study Session related to the Housing Element Update, the City Council provided staff direction to develop a new Council policy related to housing production, including ADU production, review of existing mixed -use zoning districts, and potentially allowing residential development in conjunction with existing hotel development. 8-1 Resolution No. 2022-86: Extension of Waiver of Fees for the Permitting of Accessory Dwelling Units (PA2022-037) November 29, 2022 Page 2 On March 9, 2021, the City Council adopted Resolution No. 2021-18 to add City Council Policy K-4, Reducing the Barriers of the Creation of Housing (Attachment B). As discussed in City Council Policy K-4, encouraging the development of ADUs is an important strategy to accommodate future growth and is an integral strategy to help meet the City's RHNA allocation. ADUs allow for a dispersion of density citywide and avoid the need for excessive rezoning and high infrastructure costs associated with new, higher -density developments. Since ADUs tend to be relatively small with modest amenities, they provide more affordable housing options for select groups, such as students, seniors, caretakers and people with disabilities. On April 27, 2021, the City Council adopted Resolution No. 2021-37 (Attachment C), establishing the pilot program waiving fees for a variety of ADU and JADU types in support of Council Policy K-4. The temporary fee waiver pilot program is set to sunset on December 31, 2022 unless extend further. Eligible Projects The temporary fee waiver only applies to City fees for the following projects: 1. Construction of a new detached ADU to an existing residence; 2. Construction of a new attached ADU or JADU to an existing residence; 3. Conversion of existing residential floor area, including a garage, to an ADU or JADU; or 4. Legalization of an existing unpermitted ADU or JADU that meets all code requirements. Non-Eliaible Proiects Not all types of ADU and JADU projects are eligible for the fee waiver. ADUs and JADUs that are proposed as part of a new construction project are not eligible for the fee waiver under the program. For example, if an applicant proposed the development of a new single-family dwelling with an ADU, then the project would not be eligible for a fee waiver. Estimated Fees Waived versus Actual Fees Waived It was estimated that the pilot program would assist the permitting of 44 ADUs and JADUs during the program period and reduce the City's revenue by approximately $117,000. Through October 2022, the actual number of qualifying ADUs and JADUs has resulted in the waiver of permitting fees for a total of 33 units and associated waiver of fees of approximately $75,000. Benefits of Program Extension and Housing Element Policy Action 1 H As awareness of ADU development potential increases, and with the rollout of other City ADU incentive programs on the horizon, extending the fee waiver program will serve to help to maintain the momentum of ADU development in the city. 8-2 Resolution No. 2022-86: Extension of Waiver of Fees for the Permitting of Accessory Dwelling Units (PA2022-037) November 29, 2022 Page 3 A two-year extension of the fee waiver would assist in encouraging ADU/JADU development early in the RHNA planning period (2021-2029) and would serve to implement Housing Element Policy Action 1 H (Accessory Dwelling Unit Construction). Policy Action 1 requires the City to analyze methods to aggressively support and accommodate ADU construction within 12 months of Housing Element adoption and establish a program within 24 months of adoption. Status of ADU/JADU Development in the 2021-2029 Plannina Period Housing Element Policy Actions 1 H and 1 J establish a target of permitting at least 30 ADUs annually, for a total of at least 240 ADUs constructed by the end of the planning period (June 30, 2021 through October 15, 2029). Through October 2022, the City has issued permits for 70 ADUs/JADUs and an additional 26 permits are pending for units that will count in this planning period, equating to approximately 64 units annually. However, it should be noted that these figures include 30 ADUs developed within one large multi -unit apartment complex through the conversion of existing non -living area. Excluding this anomaly apartment project, the City is currently permitting approximately 45 units annually. Status of other ADU Incentive Programs/Efforts Website Enhancements In August of 2022, the Community Development Department launched a new website featuring Newport Beach ADU; an outreach program designed to assist homeowners interested in constructing an ADU on their property. The website informs property owners and the development community of the benefits of ADUs, promotes City incentives, and streamlines the development process. Over the next few months, more resources will be added to the site including downloadable guidebooks, interactive activities and exercises to help homeowners plan their ADUs, an online calculator to estimate costs, and standard plans that will be available later this year. The Newport Beach ADU website can be reached at https://www.newportbeachca.gov/adu Municipal Code Updates On September 9, 2021, the Planning Commission formed an Ad Hoc Committee to evaluate potential code amendments related to encouraging new ADU development within the City. The Ad Hoc Committee met a total of five times and developed recommendations that were shared with the Planning Commission at a study session on July 7, 2022; however, due to new ADU legislation that was pending, the Planning Commission directed staff to delay the amendments, monitor the pending legislation, and incorporate any necessary code revisions needed to comply with new legislation. The governor signed the new ADU legislation (AB221 and SB 897) on September 28, 2022. Staff is in the process of revising the code for compliance and anticipates a Planning Commission review on December 8, 2022. 8-3 Resolution No. 2022-86: Extension of Waiver of Fees for the Permitting of Accessory Dwelling Units (PA2022-037) November 29, 2022 Page 4 FISCAL IMPACT: Adoption of the fee waiver extension will result in a reduction in projected revenue of plan check review fees, building permitting fees, and other City fees for ADU and JADU projects. Assuming a conservative estimate of 45 ADUs/JADUs permitted annually, the estimated reduction in revenue for the remaining FY 2022-23 year is approximately $52,500. For the entire FY 2023-24, the estimated reduction in revenue would be $102,000. For the first six months of FY 2024-25, the estimated reduction in revenue is $52,500. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A — Resolution No. 2022-86 Attachment B —City Council Policy K-4 Attachment C — Resolution No. 2021-37 RM RESOLUTION NO. 2022- 86 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, EXTENDING THE TEMPORARY WAIVER OF BUILDING PLAN CHECK, BUILDING CONSTRUCTION PERMIT, AND OTHER CITY PERMIT FEES DIRECTLY RELATED TO THE DESIGN AND CONSTRUCTION OF ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS . WHEREAS, the City Council adopted Resolution No. 2021-18 on March 9, 2021, adding City Council Policy K-4 (Reducing the Barriers of the Creation of Housing) setting forth policy goals including an increase in the production of accessory dwelling units ("ADUs") and junior accessory dwelling units ("JADUs") to help meet the City of Newport Beach's ("City") Regional Housing Needs Assessment ("RHNA") allocation of 4,845 units of varying affordability; WHEREAS, Chapter 3.36 (Cost Recovery for User Services) of the Newport Beach Municipal Code ("NBMC") and the City's Schedule of Rents, Fines and Fees ("SRFF") establish the fees for permits, inspections, and other fees related to building and construction activities; WHEREAS, the City Council desires to promote the construction of ADUs and JADUs by temporarily waiving City related fees, including building plan check, building construction permit, and other directly associated permit fees; WHEREAS, the City Council adopted Resolution No. 2021-37 on April 27, 2021, establishing a temporary waiver of building plan check, building construction permit, and other City permit fees directly related to the design and construction,of ADUs and JADUs, until December 31, 2022; WHEREAS, the temporary fee waiver encouraged the construction of new ADUs and JADUs, and encouraged property owners to bring existing unpermitted ADUs and JADUs into compliance with the NBMC, which helps to meet the City's RHNA allocation; WHEREAS, extending the temporary fee waiver will help maintain the momentum of ADU and JADU development in the City; and WHEREAS, the City Council hereby finds that it is in the best interest of the City to continue to invest in protecting the character and distinctive areas of the community through the extension of the temporary fee waiver. -1 Resolution No. 2022- Page 2 of 3 NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council does hereby extend the temporary waiver of City building plan check, building construction permit, and other related City fees required for plan check, permits, inspections, re -inspections and other related activities, for the design and construction of ADUs and JADUs on existing residential developments and the legalization of existing unpermitted ADUs and JADUs subject to the additional eligibility requirements set forth herein. Section 2: The extension of the temporary waiver of the fees set forth in Section 1 apply to: 1) construction of a new detached ADU to an existing residence; 2) construction of a new attached ADU or JADU to an existing residence; 3) conversion of existing residential floor area, including a garage, to an ADU or JADU; or 4) legalization of an existing unpermitted ADU or JADU that meets all current and applicable requirements of Title 9 (Fire Code), Chapter 15.04 (Building Code), Chapter 15.05 (Residential Code), Chapter 15.06 (Electrical Code), Chapter 15.07 (Mechanical Code), Chapter 15.08 (Plumbing Code) and Sections 20.48.200/21.48.200 (Accessory Dwelling Units) of the NBMC. The temporary waiver of fees shall not apply to an application for an ADU or JADU as part of a new residential development or to any application for an ADU or JADU submitted to the City prior to the effective date of Resolution 2021-37. Section 3: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 4: Except as expressly set forth herein, nothing contained in this resolution shall be deemed to waive any fees otherwise required by any other provision of law, including fees collected by the City on behalf of any other public agency or entity, nor otherwise waive compliance with any other applicable provisions of the NBMC or any other City ordinance, policy or regulation. Section 5: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. RM Resolution No. 2022- Page 3 of 3 Section 6: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 7: This resolution shall take effect immediately upon its adoption by the City Council and remain in effect through December 31, 2024, at which time this resolution shall automatically sunset without further action by the City Council. The City Clerk shall certify the vote adopting the resolution. ADOPTED this 29th day of November 2022. Kevin Muldoon Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE ow_ c 0 Aaron C. Harp City Attorney :r Reducing the Barriers to the Creation of Housing Background LIMA! The State of California has declared that the lack of housing is a critical problem that threatens the economic, environmental, and social quality of life in California. The consequences of the housing crisis include the lack of housing to support employment growth, imbalance in jobs and housing, reduced mobility, urban sprawl, excessive commutes, and air quality deterioration. While the causes of this crisis are multiple and complex, the State attributes the underlying cause to insufficient housing supply. On October 15, 2019, the California Department of Housing and Community Development (HCD) issued a Regional Housing Needs Assessment (RHNA) for the Southern California Association of Governments (SCAG) region of 1,341,827 units that each jurisdiction within the region must plan for in the 2021-2029 Planning Permit (Sixth Cycle). As required under State law, SCAG developed a RHNA Allocation Methodology to reallocate the regional determination to each of the 197 jurisdictions in the region, including Newport Beach. The City of Newport Beach worked diligently for many months in partnership with other member jurisdictions and stakeholders throughout the RHNA Allocation Methodology development process to provide comments and recommendations to achieve a RHNA allocation that is fair, equitable and in consideration of the unique circumstances and local planning factors inherent in our community. Despite this process and a City -initiated RHNA appeal, the final adopted RHNA methodology resulted in an allocation of 4,845 units for the City. The City has successfully obtained and maintained HCD certification of its Housing Element for both the Fourth Cycle (2008-2014) Planning Period with a RHNA Allocation of 1,769 units and the Fifth Cycle (2014-2021) Planning Period with a RHNA Allocation of 5 units. Despite a low Fifth Cycle RHNA Allocation, the City maintained its commitment to housing programs intended to reduce the barriers to the development of affordable housing, including preserving the Residential Overlay within the Newport Place Planned Community. During the first six years of the Fifth Cycle Planning Period, the City has permitted over 1,768 new units, including 95 lower income units. In addition, the City has approved entitlements for housing development projects totaling another 662 multi -unit residential units in the Airport Area, including 13 very low- and 78 low-income units. The Newport Airport Village Planned Community was also adopted creating the opportunity for another 444 residential units that would include a minimum affordable housing component consisting of at least 5 percent very low-income units or 10 percent low income units. Lastly, the City has committed approximately $2 million to fund the 8-10 acquisition and rehabilitation of the Cove permanent supportive housing project a 12-unit apartment complex for homeless veterans and low-income seniors that opened in 2018. Despite an immensely difficult -to -attain Sixth Cycle RHNA Allocation, the City remains committed to addressing the housing crisis by developing a timely and compliant Housing Element and continuing to support the production of housing for all income levels. Policy Recognizing that the City has several major constraints on existing lands that severely limit or totally restrict the City's ability to accommodate growth to the extent identified in the Sixth Cycle RHNA Allocation, it shall be the policy of the City Council to consider new and flexible land use and zoning regulations and strategies in order to reasonably and practically accommodate this ambitious State housing mandate while protecting the character and maintaining a quality of life that makes Newport Beach a special place to live, work, and visit. The City Council therefore directs City staff and the Newport Beach Planning Commission to develop, modify as necessary, and aggressively implement strategies and action plans that are designed to accelerate housing production consistent with this policy as described in the following sections: Production of Accessory Dwelling Units The Legislature approved, and the Governor signed SB 13 (Chapter 653, Statutes of 2019), AB 68 (Chapter 655, Statutes of 2019), and AB 881 (Chapter 659, Statutes of 2019) into law that, among other things, amended Government Code sections 65852.2 and 65852.22 to further impose new limits on the City's ability to regulate ADUs and Junior Accessory Dwelling Units (JADUs). The Legislature's intent was to reduce regulatory barriers and costs, streamline the approval process, and expand the potential capacity for ADUs. Although the City has revised its ADU regulations to comply with the minimum requirements of State law, further encouraging the development ADUs is an important strategy to accommodate future growth in combination with other strategies to meet the RHNA Allocation. HCD allows ADUs to meet a portion of the City's RHNA based on trends in past production and more aggressive production estimates based on the adoption of production programs. Encouraging ADUs allows for the dispersing of density throughout the City and avoids the need for excessive rezoning and high infrastructure costs associated with new high -density developments. Because ADUs tend to be relatively small with modest amenities, they provide more affordable housing options for select groups, such as students, seniors, caretakers, and people with disabilities. Therefore, to further encourage and incentivize the development of ADUs, the City should pursue the following: 8-11 1. Interpret ambiguities in code provisions regulating ADUs in a manner that accommodates and maximizes production. 2. Direct staff and the Planning Commission to review and recommend code changes that reduce regulatory barriers, streamline the approval process, and expand potential capacity of ADUs beyond minimum State law requirements. 3. Publicize incentives for construction of ADUs with a systematic approach utilizing all forms of media and outreach. 4. Prepare and maintain a user-friendly website committed to information related to codes, processes, and incentives pertaining to the development of ADUs and JADUs in the City. 5. Develop and administer a program that includes waiving all permit and City fees for property owners of unpermitted units when they agree to bring units into compliance with current building and fire codes to ensure the safety of occupants and structures. 6. Develop permit -ready standard plans to permit new ADU construction to minimize design costs, expedite permit processing, and provide development certainty for property owners. Planninq Commission Review and Recommendations for Mixed -Use Designations As part of the 2006 Comprehensive General Plan Update and 2010 Zoning Code Update, new mixed -use housing opportunity zones were created throughout the City as a strategy to enhance and revitalize underperforming and underutilized properties. These areas included the Airport Area, Dove r/Westcliff, Newport Center, Mariners Mile, and portions of the Balboa Peninsula. The Airport Area and Newport Center have proven the most successful with several approved and constructed mixed -use developments, such as Uptown Newport and Villas Fashion Island. The Balboa Peninsula has had some limited success while Dover/Westcliff and Mariners' Mile have not proven successful to -date. Despite the housing opportunity that has been created on several properties in these areas, a majority of these sites remain underutilized with a single, non-residential use, such as retail or office. It is evident the City's existing development standards (e.g., setbacks, height, density, parking, dedications, etc.) related to mixed -use development may create constraints to the redevelopment of these properties. Therefore, to ensure that mixed -use opportunities envisioned by the 2006 General Plan redevelop to their full potential, the City should pursue the following: 1. Direct staff and the Planning Commission to review annually the established mixed -use zones in the City and recommend code changes or policy ideas to the City Council that reduce regulatory barriers and incentivize mixed -use residential development. 8-12 Mixed -Use Resort Opportunities Mixed -use resorts are an established trend in the hospitality industry that incorporate hotel -branded residential units as an accessory use located within a resort hotel complex where residents enjoy access to the full range of services, facilities, and amenities provided by the hotel operator or brand. The residential use cannot exist without the hotel's services, facilities, and amenities. The hotel industry has been one of the hardest hit industries due to the COVID-19 pandemic and a full recovery of the industry is not anticipated for many years. Mixed -use resorts provide an opportunity to revitalize older or underperforming hotels and maintain their competitive standing by creating multiple revenue streams. Economies of scale created by shared facilities, amenities, and services add additional benefit to mixed -use resort developments. This cross pollination of business benefits both the hotel and the resident. It may also increase occupancy rates at the resort by creating increased synergy between uses and social gathering opportunities, boosting transient occupancy taxes while providing in -fill housing opportunities to partially assist the City in meeting its RHNA obligation in highly desirable and built -out areas. Incorporating residences also helps to off -set cyclical variations in hotel occupancy rates that can, for instance, result in seasonal decreases in revenue for the hotel's food and beverage offerings. Therefore, to further encourage and incentivize the development of mixed -use hotels, the City should pursue the following: 1. Issue interpretations that interpret ambiguities in General Plan, Zoning Code, and/or Local Coastal Plan Program provisions to allow hotels and motels, located outside of the Coastal Commission Appeal Areas, to convert up to thirty percent (30%) of their permitted hotel and motel rooms into residential units on a one -for - one basis. Such interpretation would allow for residential units to be deemed an accessory use to the principal use of a hotel and find that such residential uses are consistent with the hotel's and motel's underlying General Plan, Zoning Code, and Local Coastal Plan Program land use and zoning designations. 2. The residential units may be allowed in repurposed hotel and motel rooms and/or in new residential structures, subject to the City's project approval process (e.g., Site Development Review) and including, as appropriate, review under the California Environmental Quality Act. 3. Consider establishing parking programs (e.g., shared parking) and/or reduced residential parking requirements that mitigate the need for any additional parking due to the conversion to residential use. 4. Consider fiscal impact analysis to disclose and mitigate any reduction in transient occupancy tax due to the conversion. 8-13 5. Consider increasing the flexibility in use of transfer of development rights to allow for transfer of unbuilt residential units to hotel sites. 6. Require property owners converting permitted hotel and motel rooms into residential units to mitigate impacts as a result of the conversion including, but not limited to, creating affordable housing units either in the project itself or through a contribution of in -lieu fees. Adopted K-4 — 03-09-2021 8-14 RESOLUTION NO. 2021-37 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, TEMPORARILY WAIVING BUILDING PLAN CHECK, BUILDING CONSTRUCTION PERMIT, AND OTHER CITY PERMIT FEES DIRECTLY RELATED TO THE DESIGN AND CONSTRUCTION OF ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS WHEREAS, the City Council adopted Resolution No. 2021-18 on March 9, 2021 adding City Council Policy K-4 (Reducing the Barriers of the Creation of Housing) whose stated policy goals include an increase in the production of accessory dwelling units ("ADUs") and junior accessory dwelling units ("JADUs") in order to meet the City of Newport Beach's ("City") Regional Housing Needs Assessment ("RHNA") allocation of 4,845 units of varying affordability; WHEREAS, Chapter 3.36 (Cost Recovery for User Services) of the Newport Beach Municipal Code ("NBMC") and the City's Schedule of Rents, Fines and Fees ("SRFF") establish the fees for permits, inspections, and other fees related to building and construction activities; WHEREAS, the City Council desires to promote the construction of ADUs and JADUs by temporarily waiving City related fees, including building plan check, building construction permit, and other directly associated permit fees; WHEREAS, this temporary fee waiver encourages the construction of new ADUs and JADUs, as well as the legalization of existing unpermitted ADUs and JADUs, as part of an existing residence, to meet the City's RHNA allocation; and WHEREAS, the City Council hereby finds that it is in the best interest of the City to invest in protecting the character and distinctive areas of the community through the establishment of this temporary fee waiver. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council does hereby temporarily waive the City building plan check, building construction permit, and other related City fees required for plan check, permits, inspections, re -inspections and other related activities, for the design and construction of ADUs and JADUs on existing residential developments and the legalization of existing unpermitted ADUs and JADUs subject to the additional eligibility requirements set forth herein. Resolution No. 2021-37 Page 2 of 3 Section 2: The temporary waiver of the fees set forth in Section 1 apply to: 1) construction of a new detached ADU to an existing residence; 2) construction of a new attached ADU or JADU to an existing residence; 3) conversion of existing residential floor area, including a garage, to an ADU or JADU; or 4) legalization of an existing unpermitted ADU or JADU that meets all current and applicable requirements of Title 9 (Fire Code), Chapter 15.04 (Building Code), Chapter 15.05 (Residential Code), Chapter 15.06 (Electrical Code), Chapter 15.07 (Mechanical Code), Chapter 15.08 (Plumbing Code) and Sections 20.48.200/21.48.200 (Accessory Dwelling Units) of the NBMC. The temporary waiver of fees shall not apply to an application for an ADU or JADU as part of a new residential development or to any application for an ADU or JADU submitted to the City prior to the effective date of this resolution. Section 3: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 4: Except as expressly set forth herein, nothing contained in this resolution shall be deemed to waive any fees otherwise required by any other provision of law, including fees collected by the City on behalf of any other public agency or entity, nor otherwise waive compliance with any other applicable provisions of the NBMC or any other City ordinance, policy or regulation. Section 5: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 6: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. 8-17 Resolution No. 2021-37 Page 3of3 Section 7: This resolution shall take effect immediately upon its adoption by the City Council through December 31, 2022, at which time this resolution shall automatically sunset without further action by the City Council. The City Clerk shall certify the vote adopting the resolution. ADOPTED this 27th day of April, 2021. ATTEST: r FWPO\ Q� .: Leilani I. Brown �. City Clerk U =` cgc�FQa% APPROVED AS TO FORM: CITY TTORNEY'S OFFICE Gv-- AaroA C. Harp City Attorney 8-18 STATE OF CALIFORNIA COUNTY OF ORANGE ss. CITY OF NEWPORT BEACH } I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; the foregoing resolution, being Resolution No. 2021-37 was duly introduced before and adopted by the City Council of said City at a regular meeting of said Council held on the 27th day of April, 2021, and the same was so passed and adopted by the following vote, to wit: AYES: Mayor Brad Avery, Mayor Pro Tern Kevin Muldoon, Council Member Joy Brenner, Council Member Diane Dixon, Council Member Will O'Neill NAYS: None ABSENT: Council Member Noah Blom, Council Member Duffy Duffield IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 28th day of April, 2021. Leilani I. Brown City Clerk Newport Beach, California .YYl ,� TO V-t% 8-19