CITY OF DANA POINT AGENDA REPORT URSULA LUNA-REYNOSA, COMMUNITY DEVELOPMENT DIRECTOR BELINDA DEINES, SENIOR PLANNER

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03/20/18 Page 1 Item #15 CITY OF DANA POINT AGENDA REPORT Reviewed By: DH X CM X CA DATE: MARCH 20, 2018 TO: FROM: CITY MANAGER/CITY COUNCIL URSULA LUNA-REYNOSA, COMMUNITY DEVELOPMENT DIRECTOR BELINDA DEINES, SENIOR PLANNER SUBJECT: DOHENY VILLAGE PLAN UPDATE RECOMMENDED ACTION: That the City Council: 1. Receive and file the Doheny Village Plan Update report; 2. Adopt guiding principles for the Doheny Village Plan Update project; 3. Direct staff to: a. Continue meeting with the Doheny Village Merchants Association as a working group and prepare a Draft Zoning Code Update for City Council review; b. Prepare a Zone Text Amendment for inclusion in the 2018 Zoning Ordinance cleanup project to streamline existing, nonconforming property regulations and provide more flexibility for Village property owners to invest in updating and improving their properties; c. Prepare a beautification plan; and d. Suspend work authorized by the Council for the Doheny Village Plan Update EIR contract. BACKGROUND: In 2010, the City Council selected ROMA Design Group to prepare the Doheny Village Plan for the project area commonly referenced as Doheny Village ( The Village ), and the project included public outreach and resulted in a draft document in 2013. In 2015, the City Council awarded a contract to Opticos Design, Inc. to build off the effort of ROMA Design Group and prepare implementation language for The Village to be incorporated into the City s zoning code. A key component of Opticos work plan was to facilitate a community design charrette to engage the community and solicit additional input. In March 2016, the draft code was informally distributed and community members expressed issues related to parking, nonconforming uses, and development standards. The most vocal group being the Doheny Village Merchants Association ( DVMA ) which

03/20/18 Page 2 Item #15 is a group of long-term business owners, property owners, and area residents in The Village. DVMA was formed in late 2016 to express concerns with the proposed plan. Beginning in October 2017, City staff re-initiated a public engagement process to inform, consult, and involve DVMA with a series of five (5) monthly meetings which featured interactive presentations and group discussions structured by a citizen partnership model. Meetings focused on challenges and opportunities related to land uses and development standards in The Village, as well as identifying areas of consensus to move forward with the project. Furthermore, City staff facilitated onsite, one-on-one conversations with residents, business owners, and property owners to gain insight on various perspectives and shared interests and concerns. Participants feedback of the City s recent outreach efforts have been favorable and the majority of evaluation forms respondents from the most recent stakeholder meeting supported moving forward with the recommendations detailed in this report. DISCUSSION: As a result of the most recent outreach efforts, City staff developed an action plan with DVMA to move long-range planning in The Village forward. The proposed action plan is intended to implement both practical short-term measures and a longer term effort to complete a zoning code update to support the vision for the future of The Village. In the short-term, City staff recommends adopting the proposed guiding principles, suspending work efforts on the project s Environmental Impact Report ( EIR ), and including a Zone Text Amendment in the 2018 Zoning Ordinance Clean-up project to provide some additional flexibility for nonconforming properties in The Village and development of a beautification plan. Longer term efforts include implementation of a beautification plan and a comprehensive update to zoning regulations specific to The Village. Details of the proposed action plan are as follows: Guiding Principles The Village is a diverse area with different interest groups and stakeholders. These guiding principles highlight areas of consensus as a result of DVMA input over the past five months. These core principles are intended to be the foundation for future land use planning and serve as a foundation to guide the project moving forward in The Village. Community input developed the following guiding principles for The Village: 1. Planning process must be driven by the community Ongoing meetings and outreach Continue to solicit community input through decision making process 2. Adopt zoning that aligns and respects existing uses Recognize existing, nonconforming uses Update/ensure regulations allow existing uses

03/20/18 Page 3 Item #15 3. Keep jobs and services in the community Recognize and respect existing businesses in the area 4. Offer incentives for rehabilitation and new development Zoning regulations must allow existing, nonconforming properties to be updated Public investment in beautification 5. Increase connectivity to the Village To the beach, across the creek, and PCH 6. Invest in beautification Landscaping and streetscape enhancements Façade improvements on private property 7. Consider options for traffic calming Avoid congestion impacts 8. Explore parking opportunities Identify additional on-street parking sites Apply parking management tools 9. Preserve character and enhance vitality Recognize The Village as an eclectic area - Industrial, Mixed-Use, Commercial - Many long-standing businesses - Variety of housing types (mobile homes, SFD, apartments, etc.) City staff and Village stakeholders are seeking City Council s input and support of the Guiding Principles drafted above. These principles will be utilized throughout the planning process and will ensure that the Council s and stakeholders vision is aligned. Zoning Code Cleanup Amendment Among the core land use issues facing The Village is addressing nonconforming uses and structures. While a longer term zoning code update effort is needed to address this issue comprehensively, staff recommends streamlining existing regulations to allow property owners to invest and improve their existing, nonconforming properties in the short-term. In December 2017, the City Council approved a zoning ordinance Code Cleanup to update and clarify requirements within the Dana Point Zoning Code. The 2018 Code Cleanup is currently underway with public workshops anticipated this spring. In conjunction with the 2018 Code Cleanup, staff proposes a Zone Text Amendment to existing, nonconforming regulations to provide an ability for property owners to invest in updating and improving their properties in The Village. The Zone Text Amendment would focus on increasing allowances to remodel existing non-conforming properties, and allow nonconforming expansions to be reviewed and approved administratively through a Minor Conditional Use Permit versus the current requirements for a (major) Conditional Use Permit for properties only located in The Village.

03/20/18 Page 4 Item #15 Beautification Plan As identified in the Guiding Principles, Village stakeholders desire investment in beautification, preservation of character, and enhancement of vitality. Development of a beautification plan will require public and private partnership working toward neighborhood revitalization. A beautification plan is intended to build upon a strong sense of place, raise the aesthetic appeal in The Village, foster community pride, encourage community involvement, and maintain beautification enhancements in perpetuity. The beautification plan may include, but is not limited to: volunteer efforts, community cleanups, landscape plantings, streetscape enhancements, public art, decorative bicycle racks, wayfinding signage, and screening. While some improvements have been made, the plan would bring all these elements together in one unified effort and expand to include future improvements that will add cohesiveness throughout The Village. As a first step, staff is requesting direction to prepare a beautification plan focused on public improvements and return at a future Council meeting to review the draft plan and budget. Working Group Building upon the input and collaboration of the most recent DVMA outreach efforts, staff is proposing continued outreach and forming a working group to develop and review zoning code language for The Village. DVMA have identified the need to better understand zoning code changes to be brought forward and a willingness to commit to this level of effort to take a more active role in drafting and reviewing proposed zoning language. The working group would consist of DVMA stakeholders committed to meeting with City staff on a regular basis. Working group sessions would be open to the public and could entail broader meetings with the community at large as needed. The end product of the working group s effort will be a draft zoning code update that reflects the vision and values of the guiding principles. The draft zoning code would be presented to the City Council for preliminary review prior to finalizing and releasing the Draft EIR for public review and comment. Environmental Impact Report Staff recommends suspending the contract for the Program Environmental Impact Report (the EIR ), which is being prepared by Michael Baker and Associates. The EIR was based on the draft form-based code, and any substantive changes to the project description will likely require revisions to technical reports, which in turn could delay completion of the EIR. Based on community feedback, additional code revisions and changes to the project description are likely necessary to ensure that a future plan for enhanced zoning regulations are consistent with the Guiding Principles. Staff anticipates re-initiating the EIR work after the working group completes the zoning code language updates and has received preliminary support from the Council. Technical studies and EIR work completed to date will be utilized to complete the Draft EIR. However, some modifications will likely be needed. Cost implications associated with potential changes are unknown at this time.

03/20/18 Page 5 Item #15 NOTIFICATION AND FOLLOW-UP: Doheny Village Merchants Association STRATEGIC PLAN IMPLEMENTATION: Evaluate land use issues to insure that the goals, policies and programs of the General Plan reflect the community s vision and mission; Maintain, modernize and beautify the City s infrastructure and neighborhoods; Foster a vibrant business climate. FISCAL IMPACT: Aside from City staff time, there have been no expenditures for the community engagement efforts from October 2017 to date. Staff time includes monthly meeting preparation, attendance, and follow-up. In an effort to keep the City Council apprised of committments related to the planning process, summarized below are existing contracts and other miscellaneous expenses to date: Doheny Village Project Budget Summary To Date Contract Amount Keyser Marston Associates Economic Analysis $38,000.00 Opticos Design, Inc. Form-Based Code $249,472.00 JLC Engineering Hydraulic Analysis $42,500.00 Nelson/Nygaard Consulting Associates Traffic Study $113,660.00 Michael Baker International EIR $169,833.00 Hetherington Coastal Geotechnical Geotechnical Consultant $17,000.00 David Evans & Associates Right of Way Surveying $50,000.00 Linscott, Law & Greenspan Richard Willson Transportation Consultant Traffic Engineers Joint Parking Study $77,600.00 $15,000.00 Charrette Incidentals Materials, Meals and Advertising $8,670.00 Total Expenses $781,735.00

03/20/18 Page 6 Item #15 Estimated Contract Amount Discretionary Contracts to Move Forward Survey Work $50,000 LLG Traffic Impact Analysis $82,900 Current FBC Public Improvement Engineering/ Costing $50,000