CITY COUNCIL OF THE CITY OF NOVATO ORDINANCE NO. 1603

CITY COUNCIL OF THE CITY OF NOVATO ORDINANCE NO. 1603 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NOVATO ADDING SECTION 4-15 TENANTING, MANAGEMENT, AND SAFETY FOR MULTI-FAMILY HOUSING TO CHAPTER IV, BUILDING AND HOUSING, OF THE NOVATO MUNICIPAL CODE TO INCLUDE PROVISIONS FOR A MANAGEMENT PLAN FOR MULTI FAMILY RENTAL HOUSING INCLUDING 16 OR MORE UNITS AND FINDING THAT THE PROJECT IS WITHIN THE SCOPE OF A PREVIOUSLY CERTIFIED ENVIRONMENTAL IMPACT REPORT AND MAKING FINDINGS PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA), PURSUANT TO CEQA GUIDELINES SECTION 15162 AND 15168(C)(2) WHEREAS, Section 4-14 Apartments and Hotels; Periodic Housing Inspection Program and Caretaker Requirements of Chapter IV Building and Housing of the Novato Municipal Code, was established and adopted by City Council to protect the public health, safety and welfare, by ensuring the proper maintenance of such housing, by identifying and requiring correction of substandard housing conditions in such housing, and by preventing conditions of deterioration and blight in such housing that could adversely affect economic conditions and the quality of life in the city; and WHEREAS, in keeping with Section 4-14, the City desires to further advance the City s efforts to protect the public health, safety and welfare, by ensuring adequate tenanting, management and safety for multi-family housing, by the implementation of Section 4-15 - Tenanting, Management and Safety for Multi-Family Housing; and WHEREAS, Division 4-15 specifically implements the following program of the 2015-2023 Housing Element of the City of Novato s General Plan: Program 5.A Ensure Adequate Tenanting, Management and Safety for Multifamily Housing. Ensure adequate tenanting, management and safety for multi-family housing by implementing the following: a. As legally permissible, initiate City provisions for review of the management of multi-family housing to implement best management practices. Zero tolerance for criminal activity is a goal. Programs should apply to projects of a defined size and/or type. Best management practices should include, but not be limited to, addressing the following performance measures: 1. Property management staffing 2. Tenant selection plan 3. Lease agreement 4. Security-minded design 5. Resident services 6. Community and activity space ord635 1 1

7. Communication WHEREAS, on November 18, 2014, the City Council did conduct a public hearing on the 2015-2023 Housing Element, and including the Final Environmental Impact Report (FEIR) and its accompanying Mitigation Monitoring and Reporting Program, and did consider all oral and written testimony submitted to the City regarding the same prior to taking its action, by Resolution 100-13, regarding the 2007-2014 Housing Element, inclusive of Programs 5.A calling for tenanting, management and safety for multi-family housing at issue herein; and by separate Resolution No. 99-13, adopted prior hereto, the City Council did certify an EIR (Certified EIR) for the 2007-2014 Housing Element, including its related goals, policies and programs and did consider the Certified EIR and identified mitigation measures prior to taking action on the 2007-2014 Housing Element; and WHEREAS, by Resolution No. 110-14, the City Council did find that the City of Novato Housing Element, 2015-2023, and the policies and programs contained therein, inclusive of Program 5.A, is within the scope of the Certified FEIR, is adequately described in the Certified FEIR and that no new environmental document is required pursuant to CEQA Guidelines Section 15162; and WHEREAS, on April 6, 2015, the Planning Commission held a public hearing to consider regulatory options for tenanting, management and safety requirements for multi-family housing and recommended to City Council approval of tenanting, management and safety requirements for all new multi-family housing developments of 16 units or more and existing multi-family of 16 units or more seeking new entitlements; and WHEREAS, on April 21, 2015, the City Council held a public hearing to consider regulatory options for tenanting, management and safety requirements for multi-family housing and the April 6, 2015 recommendation of the Planning Commission, and by way of vote, 3-1-1, directed staff to prepare tenanting, management and safety requirements for all new multi-family housing developments of 16 units or more and existing multi-family of 16 units or more seeking new entitlements. Such amendments are set forth in Exhibit A, attached hereto and referred to hereafter as the Project ; and WHEREAS, a public notice describing the City Council's public hearing on the Project, including the environmental determination, pursuant to CEQA Guidelines Section 15168, and its pending action on the Project was sent to the ownership of all known existing multi-family rental developments within the City of Novato of 16 units or more, all persons requesting notice pursuant to Section 19.58.020 of the Novato Municipal Code, posted on the City s website, and published in the Marin Independent Journal, a newspaper of local circulation, on August 23, 2015; and WHEREAS, the City Council did conduct a public hearing on September 1, 2015 on the Project, including an environmental determination, and did consider all oral and written testimony submitted to the City regarding the same prior to taking its actions on the Project, including the environmental determination; and WHEREAS, the location and custodian of the records is the Novato Community Development Department, 922 Machin Avenue, Novato, California, 94945. 2 2

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NOVATO DOES FIND AND ORDAIN AS FOLLOWS: Section 1. Record: The Record of Proceedings ("Record") upon which the City Council bases its decision includes, but is not limited to: (1) the Certified EIR and the appendices and technical reports cited in and/or relied upon in preparing the Certified EIR, (2) the 2015-2023 Housing Element, (3) the staff reports, City files and records and other documents, prepared for and/or submitted to the City relating to the Final EIR, the 2015-2023 Housing Element and the Project, (4) the Planning Commission recommendation regarding the Project, (5) the evidence, facts, findings and other determinations set forth in this Ordinance, (6) the City of Novato 1996 General Plan and its related Final EIR and the Novato Municipal Code, (7) all documentary and oral evidence received at public workshops, meetings, and hearings or submitted to the City during the comment period relating to the Certified EIR, the 2015-2023 Housing Element and the Project, (8) all other matters of common knowledge to the City including, but not limited to, City, State, and Federal laws, policies, rules, regulations, reports, records and projections related to development within the City of Novato and its surrounding areas. Section 2. Findings: A. General Plan Consistency. The proposed amendments to Chapter IV of the Novato Municipal Code as set forth in Exhibit A attached hereto which set forth tenanting, management and safety requirements for all new multi-family housing developments of 16 units or more and existing multi-family developments of 16 units or more seeking new entitlements, are consistent with and advance the goals, objectives, policies and programs of the Novato General Plan, including the Housing Element, and the Downtown Novato Specific Plan, including: 1. Provide standards for the orderly growth and development of the City, and guide and control the use of land to provide a safe, harmonious, attractive and sustainable community; 2. Implement the uses of land designated by the Novato General Plan and Downtown Specific Plan; 3. Maintain and protect the value of property; 4. Protect the character, and social and economic stability of residential, commercial and industrial areas; 5. Assist in maintaining a high quality of life without causing unduly high public or private costs for development or unduly restricting private enterprise, initiative or innovation in design. More specifically, the proposed amendment to Chapter IV of the Novato Municipal Code are consistent with and specifically implement the following General Plan program: 3 3

Program 5.A Ensure Adequate Tenanting, Management and Safety for Multi- Family Housing. Ensure adequate tenanting, management and safety for multi-family housing by implementing the following: a. As legally permissible, initiate City provisions for review of the management of multi-family housing to implement best management practices. Zero tolerance for criminal activity is a goal. Programs should apply to projects of a defined size and/or type. Best management practices should include, but not be limited to, addressing the following performance measures: 1. Property management staffing 2. Tenant selection plan 3. Lease agreement 4. Security-minded design 5. Resident services 6. Community and activity space 7. Communication Facts in Support: The proposed amendment to Chapter IV of the Novato Municipal Code as drafted in Exhibit A provides for tenanting, management and safety requirements for all new multi-family housing developments of 16 units or more and existing multi-family developments of 16 units or more seeking new habitable area of 500sf. or greater or any number of new housing unit(s) and which currently includes or which after new construction will include 16 or more units of rental housing at any time. These requirements will provide standards to guide operation of housing projects where people live in close proximity to one another in order to promote a safe, harmonious, attractive and sustainable community and protect the character, social and economic stability of the neighborhoods in which such projects are located, In addition, adoption of these standards will improve the quality of life of residents of such project and the surrounding areas by providing best management practices for staffing, tenant selection, security, grievance processes and other minimum operational standards to provide a safe and secure environment for City residents and visitors. B. The proposed amendment to Chapter IV of the Novato Municipal Code as set forth in Exhibit A attached hereto would not be detrimental to the public interest, health, safety, convenience, or welfare of the City because said amendments further the public interest, convenience and welfare inasmuch as it sets forth tenanting, management and safety requirements for multi-family housing developments of 16 units or more in order to further the safety and welfare of the Citizens and visitors of the City. Section 3. Environmental Review. The City Council hereby finds that, pursuant to CEQA Guidelines Section 15162 no new effects could occur and no new mitigation measures would be required, as set forth below and the Project is within the scope of the Certified EIR as set forth in CEQA Guidelines Section 15168 (C)(2). No further or additional environmental review is required relating to the implementation of HO Program 5.A of the 2015-2023 Novato Housing Element, and the Municipal Code amendment at issue herein. Specifically, the City Council finds that: 4 4

1. No substantial changes are proposed that were not already contemplated in the Certified EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects. Facts in Support: The Municipal Code amendment set forth in Exhibit A is consistent with the specified provisions called for in Program 5.A and as evaluated in the Certified EIR. No new significant environmental effects or a substantial increase in the severity of previously identified significant effects are identified relative to the Municipal Code amendments as drafted in Exhibit A. 2. No substantial changes have occurred with respect to the circumstances under which the Project is to be undertaken that would require revisions to the Certified EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects. Facts in Support: There are no substantial changes in the circumstances, including involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects that are related to implementation of the tenanting, management and safety requirements pursuant to the Municipal Code amendments in Exhibit A that would require revisions to the Certified EIR. 3. No new information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the FEIR was certified as complete shows any of the following: (a) The proposed Municipal Code amendment set forth in Exhibit A will have one or more significant effects not discussed in the Certified EIR; (b) Significant effects previously examined will be substantially more severe than shown in the Certified EIR; (c) Mitigation measures or alternatives previously found not to be feasible would in fact be feasible and would substantially reduce one or more significant effects of the project, but the project proponents decline to adopt the mitigation measure or alternative; or (d) Mitigation measures or alternatives which are considerably different from those analyzed in the Certified EIR would substantially reduce one or more significant effects on the environment, but the project proponents decline to adopt the mitigation measure or alternative. Facts in Support: 1) The Municipal Code provisions contained in Exhibit A are consistent with the guiding provisions of Program 5.A from which they are based, and which were discussed in the Certified EIR. 2) There are no significant effects previously examined in the certified EIR that are deemed to be substantially more severe as a result of implementing the Municipal Code amendments as drafted in Exhibit A. 3) With implementation of the Municipal Code amendments set forth in Exhibit A, as drafted, there are no applicable mitigation measures or alternatives previously found not to be feasible that would in fact now be feasible and would substantially reduce one or more significant effects of implementing Programs contained in the 2015-2023 Novato Housing Element, including Program 5.A. 4) The proposed Municipal Code amendment 5 5

Section 4. as drafted in Exhibit A do not trigger the need for additional mitigation measures or alternatives inasmuch as they are consistent with the guiding provisions of Program 5.A from which they are based, and which were discussed in the Certified EIR. Adoption of Amendment to Municipal Code. Chapter 4 of the Novato Municipal Code is hereby amended to add Section 4-15 - Tenanting, Management and Safety for Multi-Family Housing as set forth in Exhibit A, attached hereto and incorporated herein by reference. Section 5. Severability: If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this and each section, subsection, phrase or clause thereof irrespective of the fact that any one or more sections, subsections, phrase or clauses be declared unconstitutional on their face or as applied. Section 6. Publication and Effective Date: This ordinance shall be published in accordance with applicable provisions of law, by either: publishing the entire ordinance once in a newspaper of general circulation, published in the City of Novato, within fifteen (15) days after its passage and adoption, or publishing the title or appropriate summary in a newspaper of general circulation, published in the City of Novato, at least five (5) days prior to adoption, and a second time within fifteen (15) days after its passage and adoption with the names of those City Councilmembers voting for and against the ordinance; and This ordinance shall go into effect thirty (30) days after the date of its passage and adoption. * * * * * * THE FOREGOING ORDINANCE was first read at a regular meeting of the Novato City Council on the 1 st day of September, 2015, and was passed and adopted at a regular meeting of the Novato City Council on the day of, 2015. AYES: NOES: ABSTAIN: ABSENT: Councilmembers Councilmembers Councilmembers Councilmembers 6 6

Mayor of the City of Novato Attest: City Clerk of the City of Novato Approved as to form: City Attorney of the City of Novato 7 7

EXHIBIT A SECTION4-15 Tenanting, Management and Safety for Multi-Family Housing: 4-15.01 Declaration of Purpose. The Council finds that the establishment of provisions for tenanting, management and safety for multi-family rental housing is necessary to protect the public health, safety and welfare. Ensuring proper management, tenant screening, security measures, rules of conduct, and maintenance of multi-family developments is intended to prevent conditions of deterioration and blight in such housing, promote fair housing practices and prevent conditions that could adversely affect the quality of life in the City. 4-15.02 Applicability. The requirements of this Section shall apply to (1) all new multi-family rental housing developments of 16 units or more units; (2) all existing multi-family rental housing developments applying for any discretionary entitlement or building permit to increase the total square footage of the development by 500sf. or greater or which would add any number of new dwelling unit(s) to the development and which currently includes or which after new construction will include 16 or more units of rental housing.. 4-15.03 Requirements. Prior to the issuance of a building permit for a development subject to the provisions of this Section, the Owner of the project shall enter into a Housing Agreement, in the City s standard form, as the same may be amended from time to time. In the event that the development includes affordable housing units in accordance with Chapter 19.24 or Section 19.16.070 of the Novato Municipal Code, the City s standard Affordable Housing Agreement as required by Section 19.24.090 and/or Section 19.16.070 F.7 may take the place of the Housing Agreement. The Housing Agreement or Affordable Housing Agreement shall, at a minimum, address the following: A. Management. A requirement for Owner to provide to the City for review and approval a copy of the Management Agreement between Owner and the Manager or proposed Manager of the development including provisions for: (1) City inclusion as a third-party beneficiary permitting City the right to enforce such agreement; (2) right of the City to approve or disapprove such Management Agreement to the extent to ensure compliance of such agreement with the provisions of the Housing Agreement or Affordable Housing Agreement; (3) requirement for high quality property management, on-going grounds and property maintenance, implementation, monitoring and compliance and adherence to the Management Plan; and (4) right to require replacement of the Manager in the event the requirements of the Housing Agreement/Affordable Housing Agreement, Management Agreement or Management Plan are not adhered to. B. Management Plan. A requirement for the Owner to provide to the City a Management Plan for the management of the Project, which shall include but not be limited to each of the following minimum provisions, and which shall be subject to the review and approval of the City: 1. Rules and procedures for qualifying and screening tenants and filling vacancies. Said rules and procedures shall include anti-discrimination policies, waiting list policies, grievance process, eligibility certification process and unit transfer policies; 8 8

2. Measures to maintain security and crime prevention, including a process for addressing excessive police calls to the development; 3. Rules of conduct for tenants, including provisions for: drug free property; anti violence against women and other tenants; anti drug; smoking; storage and open space use; noise; alcohol in common areas, unlawful activities, annual inspections; parking; annual eligibility certification; grounds for eviction; 4. Process for handling tenant complaints/grievances; 5. Provisions for maintenance of the development and the property upon which the development is to be constructed including requirements for minimum maintenance standards, keeping the development free of waste or deterioration and in full compliance with all City ordinances; 6. Provisions for ongoing communications between management and tenants, management and Owner, City and management and City and Owner; 7. Provisions for on-site property management staffing; and 8. A copy of the standard lease agreement. C. City Approval. City approval of the Management Agreement and Management Plan shall be required prior to final inspection of the development and issuance of a certificate of occupancy therefore. 9 9