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HomeMy WebLinkAbout080100 CC/PC Jnt. Workshop AgendaIn compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the office of the City Clerk (909) 694-6444. Notification 48 hours prior to a meeting will enable the City to make reasonable arrangements to ensure accessibility to that meeting [28 CFR 35.102.35.104 ADA Title II] AGENDA JOINT CITY COUNCIL/PLANNING COMMISSION AN ADJOURNED REGULAR WORKSHOP CITY COUNCIL CHAMBERS 43200 BUSINESS PARK DRIVE AUGUST 1, 2000- 6:00 P.M. At approximately 9:45 P.M., the City Council will determine which of the remaining agenda items can be considered and acted upon prior to 10:00 P.M. and may continue all other items on which additional time is required until a future meeting. All meetings are scheduled to end at 10:00 P.M. CALL TO ORDER: Mayor Jeff Stone Invocation: Councilman Naggar ROLL CALL: Councilmembers Comerchero, Naggar, Pratt, Roberrs, Stone Planning Commissioners Chiniaeff, Mathewson, Telesio, Webster, Guerriero PUBLIC COMMENTS A total of 30 minutes is provided so members of the public may address the Council on items that appear within the Consent Calendar or ones that are not listed on the agenda. Speakers are limited to two (2) minutes each. If you desire to speak to the Council on an item which is listed on the Consent Calendar or a matter not listed on the agenda, a pink "Request to Speak" form should be filled out and filed with the City Clerk. When you are called to speak, please come forward and state your name for the record. For all Public Hearing or Council Business matters on the agenda, a "Request to Speak" form must be filed with the City Clerk prior to the Council addressing that item. There is a five-minute (5) time limit for individual speakers. CITY COUNCIL/PLANNING COMMISSION REPORTS Repods by the members of the City Council/Planning Commission on matters not on the agenda will be made at this time. A total, not to exceed, ten (10) minutes will be devoted to these reports. R:~Agenda\080100 1 COUNCIL/COMMISSION BUSINESS 1 Housing Element ProGress Report RECOMMENDATION: 1.1 Receive the Housing Element Needs Assessment and provide comments regarding issues to be addressed in the updated Housing Element. 2 Growth Manaqement Plan RECOMMENDATION: 2.1 Provide direction to the Planning Commission and staff on the density and amenity issues associated with the Growth Management Plan (GMP). 3 General Plan ProGress Update RECOMMENDATION: 3.1 Provide comments on the Elements (i.e. Land Use, Circulation, Growth Management) that should be examined during the update of the City's General Plan. ADJOURNMENT City Council next regular meeting: Tuesday, August 8, 2000, 7:00 P.M., City Council Chambers, 43200 Business Park Drive, Temecula, California. Planning Commission next regular meeting: Wednesday, August 2, 6:00 P.M., City Council Chambers, 43200 Business Park Drive, Temecula, California. R:~Agenda\080100 2 TEMECULA COMMUNITY SERVICE~'DISTRICTi. MEE, TING=?~! !':: CALL TO ORDER: President Jeff Comerchero ROLL CALL: DIRECTORS: Naggar, Pratt, Roberrs, Stone, Comerchero PUBLIC COMMENTS A total of 15 minutes is provided so members of the public may address the Board of Directors on items that are not listed on the agenda or on the Consent Calendar. Speakers are limited to two (2) minutes each. If you decide to speak to the Board of Directors on an item not on the agenda or on the Consent Calendar, a pink "Request to Speak" form should be filled out and filed with the City Clerk. When you are called to speak, please come forward and state your name for the record. For all other agenda items, a "Request to Speak" form must be filed with the City Clerk Prior to the Board of Directors addressing that item. There is a five (5) minute time limit for individual speakers. Anyone wishing to address the Board of Directors should present a completed pink "Request to Speak" form to the City Clerk. When you are called to speak, please come forward and state your name and address for the record. CONSENTCALENDAR 1 Minutes RECOMMENDATION: 1.1 Approve the minutes of June 13, 2000. DIRECTOR OF COMMUNITY SERVICES REPORT GENERAL MANAGER'S REPORT BOARD OF DIRECTORS' REPORTS ADJOURNMENT Next regular meeting: August 8, 2000, at 7:00 P.M., scheduled to follow the City Council Consent Calendar, City Council Chambers, 43200 Business Park Drive, Temecula, California. R:~Agenda\080100 3 TEMECULA REDEVELOPMENT AGENCY MEETING:'~:'!: i !:" CALL TO ORDER: Chairperson Ron Roberts presiding ROLL CALL AGENCY MEMBERS: Comerchero, Naggar, Pratt, Stone, Roberrs PUBLIC COMMENTS A total of 15 minutes is provided so members of the public may address the Redevelopment Agency on items that are not listed on the agenda or on the Consent Calendar. Speakers are limited to two (2) minutes each. If you decide to speak to the Board of Directors on an item not on the agenda or on the Consent Calendar, a pink "Request to Speak" form should be filled out and filed with the City Clerk. When you are called to speak, please come forward and state your name for the record. For all other agenda items, a "Request to Speak" form must be filed with the City Clerk Prior to the Board of Directors addressing that item. There is a five (5) minute time limit for individual speakers. Anyone wishing to address the Board of Directors should present a completed pink "Request to Speak" form to the City Clerk. When you are called to speak, please come forward and state your name and address for the record. CONSENT CALENDAR I Minutes RECOMMENDATION: 1.1 Approve the minutes of June 13, 2000. EXECUTIVE DIRECTOR'S REPORT AGENCY MEMBERS' REPORTS ADJOURNMENT Next regular meeting: August 8, 2000, at 7:00 P.M., scheduled to follow the Community Services District Meeting, City Council Chambers, 43200 Business Park Drive, Temecula, California. R:V~genda\0801 O0 4 ITEM 1 TO: FROM: DATE: SUBJECT: APPROVI~,~ CiTY ATTORNEY DIRECTOR OF FINANC CITY MANAGER CITY OF TEMECULA AGENDA REPORT City ManagedCity Council/Planning Commission Gary Thornhill, Deputy City ManageP~'~ August 1, 2000 Housing Element Progress Report RECOMMENDATION: That the City Council and Planning Commission receive the Housing Element Needs Assessment and provide comments regarding issues to be addressed in the updated Housing Element. BACKGROUND: Historically cities and counties are required to update their Housing Elements every five years. For the last six years State funds were not available to prepare the Regional Housing Needs Assessment which is the basis for updating the Housing Element. Under a new State law, cities and counties in the six-county region served by the Southem California Association of Government (SCAG) have until December 31, 2000 to update their housing elements. The City of Temecula selected Cotton Beland and Associates to prepare the Housing Element update. During the last pad of 1999 and early 2000 they have been preparing a needs assessment for the City. This assessment is based on the current Housing Element and the development changes that have occurred in Temecula since this Element was adopted. The Consultant will be presenting the findings of the needs assessment along with recommendations for future programs that will insure a Housing Element that will qualify for State Certification, After the consultant's presentation, the Council and Commission will have an opportunity to comment on the needs assessment and provide input on key issues related to the Housing Element. FISCAL IMPACT: Adequate funds are available in the 2000/2001 budget to cover the $27,250.00 cost of the Housing Element Update Fund from the Consulting Services line item (001-161-999- 5248). Attachments: 1. Draft Housing Needs Assessment R:\BROWNS~housing clcmenfiSlaffReport-ee workshop 8-14)0.doe ATTACHMENT NO. 1 DRAFT HOUSING NEEDS ASSESSMENT R:\BRO~¥NS~housing elementXStaff Report-cc workshop 8-1-00.doe 2 City of Temecula 2000-2005 Housing Element Needs Assessment July 2000 City of Temecula 43200 Business Park Drive Temecula, CA 92589-9033 Consultants to the City Cotton/Beland/Associates 6336 Greenwich Drive, Suite F San Diego, CA 92122 1100.00 CITY OF TEMECULA Housing Element Section Page Section I. Introduction Section II. Housing Needs Assessment A. Population Characteristics B. Employment Characteristics C. Household Characteristics D. Special Needs Populations E. Housing Stock Characteristics Section III. Constraints on Housing Production A. Market Constraints B. Governmental Constraints C. State Tax Policies and Regulations D. Infrastructure Constraints E. Environmental Constraints Section IV. Housing Resources A. Sites for Housing Development B. Financial Resources C. Non-profit Housing Developers D. Infrastructure and Facilities E. Energy Conservation 4-1 4-2 4-2 4-4 4-6 4-9 4-11 4-22 4-22 4-23 4-31 4-31 4-32 4-33 4-33 4-37 4-39 4-39 4-39 TOC · July 17, 2000 Page 4-i CITY OF TEMECULA Figure Figure 4-1 1990 Age Distribution Figure 4-2 Temecula Housing Stock Composition Housing Element Page 4-3 4-12 TOC · July 17, 2000 Page 4-ii CITY OF TEMECULA Housing Element Table Page Table 4.1 Table 4.2 Table 4.3 Table 4-4 Table 4.5 Table 4.6 Table 4.7 Population Growth Trends 1990 Race and Ethnicity Employment of Residents by Occupation Employment by Industry: 1996 Household Growth Trends Average Number of Persons per Household 1998 Household Income by Income Group Table4-8 1990 Households Overpaying for Housing Table 4.9 Total Housing Units Table 4-10 1990 Housing Tenure Table 4-11 Age of Housing Stock Table 4-12 Median Home Prices Table 4-13 Housing Sales - January 1999 through June 2000 Table 4. 14 Affordable Housing Costs by Income Category - Riverside County Table 4-15 Assisted Housing Inventory and At Risk Status Table 4-16 Value of At-Risk Housing Units - Rancho California Apartments Table 4-17 Rent Subsidies Required Table 4. 18 Disposition of Conventional Loan Applications - 1997 Table 4. 19 Disposition of Government Backed Loan Applications - 1997 Table 4-20 Residential Development Standards Table 4-21 Parking Space Requirements Table 4-22 Planning Fee Schedule - City of Temecula Table 4-23 Development Fees - City of Temecula Table 4-24 Residential Development Potential of Vacant Land Outside Specific Plan Areas Table 4-25 Remaining Approved Residential Development for Existing Specific Plans Table 4-26 Regional Housing Growth Need by Income Group 4-2 4.4 4-4 4.5 4-6 4-7 4.8 4-9 4.12 4-13 4-13 4.14 4.15 4-15 4-17 4-19 4-20 4-23 4-23 4-25 4-25 4-29 4-30 4-33 4-34 4-36 TOC · July 17, 2000 Page 4-iii CITY OF TEMECULA Housing Element I. INTRODUCTION The City of Temecula is a growing community located along Interstate 15 in southwestern Riverside County, just north of the San Diego County line. Located in Temecula Valley, the City is surrounded by gentle rolling hills, close to the wine country. Surrounded by this attractive natural setting and located with access to both Orange and Los Angeles Counties to the north and San Diego County .to the south, the City population almost doubled during the past ten years, increasing from 27,099 persons in 1990 to 53,791 persons in 2000. With its European history beginning in the 1800's, Temecula has played an important role locally for over a century. Old Town Temecula is the historic core of the City and is located in the western portion of the City. The City's current development trend, changing it from a small agricultural community to an urbanized city, began in 1964 when Kaiser Aluminum and Chemical purchased the 87,500-acre Vail Ranch. Development of the ranch occurred under the design of a master plan that continues to influence the land use pattern and circulation system of Temecula today. Much of the remaining vacant land within the City will be developed under the control of approved specific plans. The majority (79%) of the existing housing in Temecula consists of single-family houses, with the remainder consisting of multi-family units. The high number of single-family homes is reflective of the City's young family-oriented population and desire to maintain its rural traditions. In comparison to the surrounding communities, the cost of purchasing a new home in Temecula is high, with a 1999 median price of $195,000. In the neighboring communities of Hemet, Lake Elsinore, Mumeta, and Perris the 1999 median home price ranges from $79,250 to $169,000, while the median home price in the County is $130,000. Employment opportunities exist within Temecula, allowing residents to work and live within the City. In 1990, the Southem California Association of Governments (SCAG) estimated an average of 1.66 jobs was available in Temeeula for each household, approximating the City average of 1.62 wage earners per household. Thejobs/housing ratio in Temecula is anticipated to decrease to only 1.06 jobs per household by 2005, as the construction of new housing outpaces employment growth. The City of Temecula is faced with important housing issues such as preserving the historic traditions of the community; ensuring that new development is compatible with the existing character; providing a range of housing that meets the needs of all residents; ensuring that the supply of housing is affordable to all segments of the community; and balancing employment and housing opportunities. This Housing Element evaluates housing needs in Temecula based on its demographic and housing characteristics, compiles an inventory of resources available to address the identified housing needs, assesses the effectiveness and appropriateness of existing housing programs being implemented by the City, and craRs a housing strategy that would effectively address the housing issues relating to availability, adequacy, and affordability within the limitations of the City. This Housing Element represents a policy statement indicating that Temecula will continue to strive toward maintaining and enhancing its housing quality and its desirability as a place to work and live. I. lnrro ,, July 17, 2000 Page 4- I CITY OF TEMECULA Housing Element II. HOUSING NEEDS ASSESSMENT This section of the Housing Element describes the supply and demand for housing in Temecula and is broken into five subsections, addressing the characteristics of population, employment, households, special needs populations, and housing stock. This analysis provides the basis for developing a successful housing program that meets the needs of the community. A. Population Characteristics 1. Population Growth Trends Temecula is the fifth largest city among the 24 cities in the County of Riverside. According to the Census, Temecula had a population of 27,099 in 1990. During the period from 1990 to 2000, the California Department of Finance (DOF) estimates that the City population almost doubled. As depicted in Table 4-1, Temecula experienced the largest growth in the last ten years in comparison to surrounding communities, and almost three times the growth that the County as a whole experienced. Jurisdiction Ternecula Hernet Lake Elsinore Munieta' Perris Riverside County Table 4-1 Population Growth Trends % Change 1990' 27,099 36,094 18,285 24,264 21,460 1,170,413 Projected 2000 1990-2000 2005 53,791 98% 72,080 62,751 74% 75,646 30,370 66% 53,261 43,989 81% " 32.369 51% i 55,062 1,522,855 30% ! 1.976,938 Projected % Change 2000-2005 34% 21% 75% 70% 30% SCAG estimates that Temecula will continue to experience substantial growth during the next five years. The level of growth however, is anticipated to be less than that experienced during the last ten years, with a projected growth of 34% to about 72,000 persons. For Riverside County, an overall 30% growth is expected for the next five years. The neighboring cities of Lake Elsinom and Perris are expected to experience greater growth in comparison to Temecula in the coming years. Temecula's share of the total population in Riverside County is projected to maintain at slightly below 4% in 2005. I I. Needs · July I7, 2000 Page 4-2 CITY OF TEMECULA Housing Element 2. Age Characteristics The age structure of a population is an important factor in evaluating housing needs and projecting the distribution of future housing development. Traditionally, both the young adult population (20-34) and the elderly population (65+) tend to prefer low to moderate cost, smaller units. Persons between 35 to 54 years old usually reside in higher cost, larger units .because they typically have higher incomes and a larger household size. As shown in Figure 4-1, the 1990 population of Temecula contains a younger population than the County as a whole. The median age of Temecula residents was 29.1, while the County median age was 31.5. While the City population has grown significantly since 1990, the City has remained as a family-oriented community and mostly likely has maintained a similar age structure as in 1990. This age structure indicates that the City may require larger single-family homes to meet the needs of families with their school age children, as well as smaller, moderately priced houses and multi-family units for those younger individuals who do not have children, or are just beginning their families. Figure 4-1 1990 Age Distribution 45% , 40% - 35%; 30% ~ 25% 2 20% ~ 15% ~ 10% 5% 0% II Temecula ~ · Riverside County <5 5-17 18-20 21-24 25-44 45-54 55-59 60-64 65-74 75-84 85+ Age Groups Source: 1990 Census 3. Race/Ethnicity Characteristics The racial and ethnic composition of a population affects housing needs because of the unique household characteristics of different racial/ethnic groups. These characteristics tend to correlate with other factors such as family size, housing location choices, and mobility. As shown in Table 4-2, the large majority (81%) of the 1990 population in Temecula was White, with Hispanics making up the next largest ethnic group (15%). In comparison, Riverside County contains a much more diverse population. Only 64% II. Needs · July l 7, 2000 Page 4-3 CITY OF TEMECULA Housing Element of the County's 1990 population was White. The next largest ethnic group was the Hispanic popu!ation at 26%. Table 4-2 1990 Race and Ethnicity Race/ Ethnicity White Black Asian/Other Hispanic Total s~rce: ~990census Number of Temecula % of Temecula's Number of Riverside % of Riverside Residents Population County Residents County's Population 21,882 i 80,7% i 754,140 ~ 64,4% 395 i 1,5% i 59,966 ~ 5,1% 883 i 3.3% i 48,793 i 4.2% 3,939 i 14.5% i 307,514 i 26.3% 27,099 j 100.0% i 1,170,413 i 100.0% Since 1990, the racial and ethnic composition of Temecula's population has changed. This is reflected in the school enrollment data obtained from the State Department of Education. Enrollment data for the 1997/98 school year in the Temecula Valley Unified School District showed that only 71 percent of the students were White, 18 percent were Hispanic, 7 percent were Asian and others, and 4 percent were Black. B. Employment Characteristics 1. Employment Growth According to the 1990 Census, 13,932 Temecula residents were in the labor force, representing a labor participation rate of 74%. (The labor force includes employed and unemployed persons aged 16 years and above.) As shown in Table 4-3, most of the residents were employed in two categories of occupation: managerial and professional specialty (29%) and sales, technical, and administrative support (33%). In 1990, the unemployment rate was 3.1%. According to the State Employment Development Department, Temecula's unemployment rate in June 2000 was 2.9%, much lower than the countywide rate of 4.7%. Table 4-3 Employment of Residents by Occupation Occupation Managerial/Professional Sales/Technica~Administrative (SupportO Service Occupation Precision Production, Craft & Repair Operators, Fabrications, Laborers Farming, Forestry, Fishing Total Number of Jobs 3,753 4,349 1,303 1,861 1,537 339 13,142 % of Total 28.6% 33.1% 9.9% 14.2% 11.7% 2.6% 100.0% II. Needs · Julyl7, 2000 Page 44 CITY OF TEMECULA Housing Element A City study of employment opportunities indicated that there were 19,714 jobs in Temecula in 1996. Employment by industry is tabulated in Table 4-4. As shown, manufacturing and retail trade were the primary industries in Temecula. Manufacturing Retail Trade Government, Education, Utilities Distribution & Transportation Agriculture & Mining Support Services Construction Hotel & Amusement Business Services Finance & Real Estate Health Services Engineering & Management Total Source: City of Temecula C~mmunity Profile, 1996. Table 4-4 Employment by Industry: 1996 Industry # of Jobs 5,455 4,370 1,910 1,445 1,193 1,048 1,130 860 777 571 563 393 19,714 % of Total 27.7% 22,2% 9.7% 7.3% 6.1% 5.35 5.7% 4,4% 3.9% 2,9% 2.6% 2.0% 100.0% According to SCAG, the City had an employment base of 15,184jobs in 1990, which is projected to increase by 53% to 23,179 by the year 2005, representing an average annual growth of 3.5%. With this projected increase in employment, thers will likely be an accompany increase in the demand for housing in the City. 2. Jobs-Housing Ratio A general measure of the balance between a community's employment opportunities and the housing needs of its residents is through a "jobs-housing ratio" test. According to the Census, Temecula had an average of 1.62 wage-eamers in a family while SCAG estimated that the City had 1.66 jobs per household in 1990. These figures generally indicated that the City provided adequate employment opportunities in the City, potentially allowing a portion of its residents to work in the City. In comparison, Riverside County had 1.50 wage-eamers per family, but offered only 0.89 job per household in 1990. Overall, more residents in other parts of the County worked outside of their place of residence. However, by the year 2005, the jobs-per-housing ratio in Temecula is projected to decrease substantially to 1.06, indicating that employment growth in the City is not projected to keep pace with household growth. By the year 2005, an increased number of Temecula residents will commute to other places in the region for employment. II. Needs · Julyl 7, 2000 Page 4-5 CITY OF TEMECULA Housing Element C. Household Characteristics 1. Household Growth Trends Parallel to the population growth trends shown in Table 4-1, household growth in Temecula exceeded that of the surrounding communities and the County as a whole. Between 1990 and 2000, the number of households in Temecula increased by 74% while that in the County only increased by 20%. Comparing the City population growth (98%) with its household growth (74%) indicates that the City has become more family-oriented with increasing household size. Overall, Temecula is expected to grow at a faster pace than the County as shown in Table 4-5. However, the discrepancy is expected to shrink by 2005 when Temecula's household growth is projected at 37% and the County's at 32%. Table 4-5 Household Growth Trends % Change Projected Projected % Change Judsdiction 1990' 2000 1990-2000 2005 2000-2005 Temecula 9,130 15,875 74% 21,816 37% Hernet 17.397 27,241 57% 33.645 24% Lake EIsinore 6,066 8,844 46% 16, 199 83% Mur~eta* 6.849 10,296 50% Pen'is 6,726 8,850 32% 16.811 90% Riverside County 402,067 483.580 20% 640,311 32% 2. Household Composition and Size The characteristics of the households in a city are important indicators of the type of housing needed in that community. The Census defines a household as all persons who occupy a housing unit, which may include families related through marriage or blood, unrelated individuals living together, or individuals living alone. People living in retirement or convalescent homes, dormitories, or other group living situations are not considered households. According to the 1990 Census, 80% of the 9,130 households in Temecula were considered families~. Among the 1,861 non-family households, 1,264 (68%) were single people living alone, including 259 (14%) elderly persons living alone. Overall, only 12 Temecula residents lived in group quarters in 1990. i Farmlies are deftned by the Census as people who live together in a household who are related to the householder by birth, marriage, or adoption. It. Needs · Julyl7, 2000 Page 4-6 J CITY OF TEMECULA Housing Element Household size is an important indicator for identifying sources of population growth as well as overcrowding in individual housing units. A city's average household size may decline in communities where the population is aging. As depicted in Table 4-6, the average persons per household increased by 14% in Temecula during the period of 1990-2000. This is consistent with the large number of families with school age children living in Temecula. Except for Hemet and Mumeta, surrounding communities also experienced a similar. growth in average household size. Table 4-6 Average Number of Persons per Household 1990 & 2000 Judsdiction Temecula Hernet Lake Elsinore Mumeta' Perds Riverside County · AsMurrietawasnotine~t Average Persons/Household 1990 2000 2.97 3.39 2.04 2.27 2.99 3.41 3,53 4.27 3.16 3.63 2.85 3.09 erred in 19~0. 1992 Department of Finance % Change 1990 - 2000 14.1% 9.7% 14.1% 21.0% 14.9% 8.4% Source: 1990 Census and CaJfforniaDepamnemofFina~ce, Januaff1,1992mqdJanuat,/1, 3. Household Income The income earned by a household is an important indicator of the household's ability to acquire adequate housing. While Upper Income households have more discretionary income to spend on housing, Low and Moderate Income households are more limited in the range of housing that they can afford. Typically, as the income of households decreases the incidence of overpayment and overcrowding increases. The California DeparUnent of Housing and Community Development (HCD) has developed the following income categories: · Very Low Income Households earn between 0 and 50% of the Median Family Income (MFI), adjusted for household size; Low Income Households earn between 51 and 80% of the MFI, adjusted for household size; · Moderate Income Households earn between 81 and 120% of the MFI, adjusted for household size; and, · Above Moderate/Upper Income Households earn over 120% of the MFI, adjusted for household size. It. Needs, JulyIT, 2000 Page 4-7 CITY OF TEMECULA Housing Element As part of the Regional Housing Needs Assessment (RHNA), SCAG has developed estimates on income distribution for all jurisdictions within the SCAG region in 1998. The income distributions for Temecula and Riverside County are presented in Table 4- 7. Overall, household incomes in Temecula are higher than Countywide, with about 22% of households in the City earning Very Low and Low incomes while more than 35% of the households in the County were lower incomes. Median household income in Temecula was estimated at $56,946 in 1998, which continued to be higher than the Countywide median income of only $46,500. Table 4-7 1998 Household Income by Income Group Income Group Very Low Income Low Income Moderate Income Upper Income Total City of Temecula Owner- Renter. Households Households 4.6% 19.8% 7.1% 18,6% 17.3% 27.7% 71.0% 33,9% 100.0% 100.0% Source: Regional Housing Needs Assessment, SCAG, 1998. Total Westem Riverside Households County 10.1% 19.9% 11.3% 15.5% 21.1% ! 20.9% 57.5% i 43.7% 100.0% i 100.0% 4. Overcrowding An ovemrowded household is typically defined as one with more than one person per room, excluding bathrooms, kitchens, hallways, and porches. A severely overcrowded household is defined as one with more than 1.5 persons per room. Overcrowding in results from either a lack of affordable housing and/or a lack of available housing units of adequate size. According to the 1990 Census, only 117 (2%) of the owner-households and 321 (9.7%) of the renter-households were overcrowded. In comparison, overcrowding was a more prevalent issue Countywide, with 6% of the owner-households and 18% of the renter- households living in overcrowded conditions. 5. Overpayment State and Federal standards consider a family as overpaying for housing if it spends more than 30% of its gross income on housing. A household that is spending more than it can afford for housing has less money available for other necessities and emergency expenditures. Very Low Income households overpaying for housing are more likely to be at risk of becoming homeless than other households. Renter-households overpay for their housing costs more often than owner-households because of their typically lower incomes. Compared to renters, overpayment by owners is less of a concern because homeowners have the option to retinanee the mortgage, or to sell the house and move into rentals or buy a less expensive home. 1[. Needs · Julyl7, 2000 Page 4-8 CITY OF TEMECULA Housing Element As shown in Table 4-8 below, among the City's overpaying households, 40% were Very Low and .Low Income households and 60% were Moderate and Upper Income households. The majority of the Moderate and Upper Income households with housing overpayments were homeowners. Overall, lower income renter-households were more impacted by housing overpayment than other groups. Similarly, Countywide, approximately 35% of the households experiencing housing overpayment in 1990 earned lower incomes. Table 4-8 1990 Households Overpaying for Housing Total Households Renter-Households Owner-Households Overpaying Overpaying Overpaying Income Group # % # % # % Very Low Income 850 21.3% 669 45.2% 181 7.2% Low Income 757 19.0% 434 29.3% 323 12.9% Moderate/Upper Income 2,385 59.7% 378 25.5% 2,007 79.9% Total Overpaying Households 3,992 100.0% 1,481 100.0% 2,511 100.0% Source: CHAS Databook, HUD, 1993. D. Special Needs Populations Certain segments of the population may have a more difficult time finding decent, affordable housing due to their special circumstances or needs. These "special needs" population include elderly persons, disabled persons, large households, single parent households, farm workers, and the homeless. 1. Agricultural Workers Agriculture is a predominant industry in Riverside County and the area is divided into four distinct agricultural districts. The City of Temecula is located within the San Jacinto/Temecula agricultural district. The 1990 Census reported 339 Temecula residents employed in farming, forestry, and fishing occupations. While there is no agricultural operation in the City, nearby wineries represent an employment base for agricultural workers. The City study indicates that 1,193 agriculture-related jobs were located in Temecula in 1996. Agricultural workers face various housing issues due to their typically lower incomes and the seasonal nature of their work. 2. Single Parents Single-parent families with children often require special attention due to their needs for affordable childcare, health care, and housing assistance. Female-headed families with children particularly tend to have lower incomes, thus limiting housing availability for this group. II. Needs · Julyl 7, 2000 Page 4-9 CITY OF TEMECULA Housing Element According to the 1990 Census, 750 households in Temecula were headed by single- parents, 70% of. which were headed by females. Among the female-headed households, 43% were living below the poverty level. 3. Elderly The special needs of the elderly are a function of their often lower or fixed income. In addition, housing for the elderly often requires special attention in design to allow greater access and mobility. Housing located within vicinity of community facilities and public transportation also facilitates mobility of the elderly in the community. According to the Census, Temecula had 1,709 residents age 65 or older, representing slightly more than 6% of the total population. In Temecula, about 14% of all owner- householders in 1990 were over 65 years of age. Furthermore, approximately 30% of the elde~y residents were reported to have self-care and mobility limitations and/or work disabilities. Many elderly live on fixed incomes and occupy older homes. These factors make paying for needed home repairs and maintenance difficult. 4. Persons with Disabilities In 1990, about 9% of the Temecula residents age 16 or over were recorded by the Census as experiencing self-care and mobility limitations and/or work disabilities. Physical and mental disabilities can hinder a person's access to traditionally designed housing units (and other facilities) as well as potentially limit the ability to earn income. Housing that satisfies the design and location requirements of disabled persons is limited in supply and often costly to provide. Housing oppommities for disabled persons can be addressed through the provision of affordable, barrier-flee housing. In addition to the development of new units, rehabilitation assistance can also be provided to disabled residents to make necessary improvements to remove architectural barriers of existing umts. 5. Large Households Large households are defined as those with five or more persons. The 1990 Census reported 1,336 households in Temecula had five or more members, 70% were owner- households and 30% were renters. Typically, the availability of adequately sized and affordable housing units is a major obstacle facing large households. In 1990, Temeeula had 3,528 three-bedroom housing units and another 3,166 housing units with four or more bedrooms. Thus, the City has an adequate supply of large-size housing units. The issue for large households is related to affordability, particularly among renters. According to the Census, 48% of the large renter-households were overpaying for housing. 1I. Needs, Julyl7, 2000 Page 4-10 CITY OF TEMECULA Housing Element 6. Homeless The homeless population refers to persons lacking consistent and adequate shelter. According to the 1990 Census, there were no homeless person reported visible at street locations in Temecula. The Temecula Police Department indicated that approximately 20 to 22 homeless persons were estimated to be living in the Old Town retail area. A program was put into place to find housing for these persons and all were placed. Since then, only a few homeless persons travelling through are found in the City. Outside of the City in the agricultural areas, rural homeless persons such as migrant farmer workers are occasionally identified. A number of facilities and service agencies serve the homeless in the Temecula Valley area: Corner Stone Outreach, Inc. - A one-year supervised residential structured program for males aged 18 to 60. This program offers shelter, food, clothing, Christian education, and assistance in legal matters. Mustard Seed - Transitional housing facility for women and their children. Mustard Seed operates a four-bedroom facility that can accommodate up to 15 women and children. The maximum stay is six months and education on parenting skills, finance, and other life skills is provided. Valley Restart Shelter - Drop-in center for homeless people offering showers, meals, telephone, counseling, transportation, temporary mailing address, laundry facilities, job information and referral. E. Housing Stock Characteristics 1. Housing Growth Trends As shown in Table 4-9, the housing stock in Temecula increased by almost 74% during the period of 1990 to 2000. Temecula had the greatest increase in its housing stock compared to the surrounding communities. However, over the next few years, Temecula is expected to experience only moderate housing growth, while a housing boom is anticipated for the surrounding Lake Elsinom and Petals. 2. Housing Type The majority (78%) of the existing housing stock in Tememila consists of single-family detached and attached homes (see Figure 4-2). Single-family housing units are dispersed throughout the City. Multi-family developments of five or more units represent the next largest segment (19%) of the housing stock, and the greatest concentration of apartment complexes is located along Margarita Drive. Consisting of II. Needs · Julyl 7, 2000 Page 4-11 CITY OF TEMECULA Housing Element 276 units, Heritage Mobilehome Park located in the northeastern comer of the City is the only mobilehome park in Temecula. Judsdiction Ternecula Hernet Lake Elsinore Murrieta" Perds Riverside County .~ ~e~a w~ not .r~r Table 4-9 Total Housin Units 1990' 2000 10,659 18,534 19,692 30,802 6,981 10,150 9,664 14,528 7,761 10,444 483,847 582,419 % Change 1990-2000 74% 56% 45% 50% 35% 20% 2005 21,816 33,645 16,199 16,811 640,311 % Change 2000-2005 18% 9% 60% 61% 10% Figure 4-2 Temecula Housing Stock Composition Mu8j Famly (2-4 un~) 327 unils (2%) /-' SIngle Femly (detached) 14,287 units Source: California Department of Finance, January 1,2000 3. Tenure Table 4-10 illustrates the tenure distribution of occupied housing in Temecula and in the surrounding communities. Compared to the surrounding communities Temecula has an average rate of homeownership. Correlating the high percentage of single- family homes that exist in Temecula and the average proportion of renters in the City indicates that many single-family homes are used as rentals. 1I. Needs · Julyl7, 2000 Page 4-12 CITY OF TEMECULA Housing Element The rate of vacancy is a measure of housing availability in a community. A vacancy rate of 5% generally indicates an adequate supply of housing with room for mobility. According to the 2000 DOF data, the overall vacancy rate in Temecula was 14.4% while that in the County was recorded at 17.0%. The relatively high vacancy rate in Temecula and in the County is attributed to the high level of residential development activities in the area, with many housing units being put on the market for sale at any given time. Jurisdiction Temecula Fiemet Lake Elsinore Murdeta" Pen'is Owner Occupied 5,806 10,844 3,565 424 4,703 Riverside 270,876 County Table 4-10 1990 Housing Tenure Occupied Dwellinc % of Total Occupied Units i Renter Occupied 63.6% ! 3,324 62.3% ! 6,553 58.8% i 2,501 74.6% 144 69.9% 2,023 67.4% 131,191 Units % of Total Occupied Units. 36.4% 37.7% 41.2% 25.4% 30.1% 32.6% Total Occupied Units 9,130 17,397 6,066 568 6,726 402,067 ' of Mumeta. 4. Age and Housing Stock Conditions The age of housing is commonly used as a measure of when housing may begin to require major repairs. In general, housing units over 30 years old are likely to exhibit signs of rehabilitation needs, such as new roofing, foundation work, and new plumbing. Year Built Apd11990 - January 2000 1989 to March 1990 1985 to 1988 1980 to 1984 1970 to 1979 1960 to 1969 1950 to 1959 1940 to 1949 Table 4-11 Age of Housing Stock Number of Units 7,875 2,941 5,137 995 1,361 170 13 0 1939 or eadier 42 i % of Total 43% 16% 28% 5% 7% <1% <1% 0% <1% 1I. Needs * Julyl7, 2000 Page 4-13 CITY OF TEMECULA Housing Element As depicted in Table 4-1 I, the majority of the housing units in Temecula (92%) were built between 1980 through 1999 and most likely are in good condition. Less than 3% of the existing housing stock is over 30 years old. The remainder of the City's existing housing units (approximately 8%) was built in the 1970s. Many of these units will be 30 years old during this Housing Element period. As a result, there may be a need for additional rehabilitation financing to assist homeowners with the maintenance of their older housing units. 5. Housing Costs Ownership Housing Temecula is one of the fastest growing and most prosperous communities in the Inland Empire. With its setting amidst the wine country and location along 1-15 mid-way between San Diego and Orange counties, Temecula receives growth impulses from both directions. As a result, Temecula was one of the first communities to see its residential real estate market recovering from Southem Califomia's steep recession. According to the California Association of Realtors, housing prices in Temecula are significantly higher than in surrounding communities and in the County. As evidenced in Table 4-12, median home price in Temecula increased significantly between 1998 and 1999 while median prices in surrounding communities even declined slightly or increased only nominally. Jurisdiction Ternecula Hernet Lake Elsinore Mumeta Perds Riverside County Table 4-12 Median Home Prices June 1999 June 1998 $195,000 $157,637 $79,250 $79,500 $114,000 $114,500 $169,000 $158,000 $85,000 $84.500 $130,000 $126,000 % Change 23.7% -0.3% -3.95% 7.0% 0.6% 3.2% Reflective of the housing stock, most housing sales in Temecula are for three- and four- bedroom single-family homes. During the 18-month period between January 1999 and June 2000, 1,188 housing sales were executed, of which 85% were three- and four- bedroom single-family homes. Housing units in Temecula are sold for a wide range of prices. As shown in Table 4-13, four-bedroom homes are sold from $95,000 to $645,000, indicating that some older housing units are sold for much lower prices while newer and custom homes are priced much higher. Condominium sales in Temecula exhibited similar paRems of wide price ranges. II. Needs · Jutyl7, 2000 Page 4-14 CITY OF TEMECULA Housing Element Single-Family 2-bedroom 3-bedroom 4-bedrcom 5-bedroom 6.-bedroom Condominiums 2-bedroom 3-bedroom 4Jcedrcom Table 4-13 Housing Sales January 1999 through June 2000 Median Pdce $126,250 $153,000 $190,000 $254,000 $252,000 Median Pdce $107,000 $120,000 $148.000 Pdce Range $47,000-$750,000 $68,181 -$560,000 $95,000-$645,000 $152,000-$740,000 $198,000,$400,000 Pdce Range $72,000-$165,854 $69,500-$142,500 $148,000 Source: Los Angeles Time, Dataquick Service Units Sold 52 553 456 81 5 Units Sold 15 25 1 % of Total 4.5% 48.2% 39.8% 7.1% 0.1% % of Total 36.6% 61.0% 0.4% Housing affordability is dependent upon income and housing costs. According to the HUD guidelines for 2000, the median family income (MFI) for a family of four in Riverside County is $47,400. Based on this median income, the following maximum income limits for a four-person family can be established: Very Low Income households (0 to 50% of MFI) eam a maximum of $23,700 Low Income households (51 to 80% of MFI) earn a maximum of $37,900 Moderate Income households (81 to 120% of MFI) earn a maximum of $56,900 Median Income households earn $47,400 Income Category Very Low Low Moderate Median Table 4-14 Affordable Housing Costs by Income Category Riverside County Maximum income $23,700 $37,900 $56,900 $47,400 Monthly Affordable Housing Cost $592 $947 $1,422 $1,185 UtiliWrraxes/ Maintenance $100 $150 $200 $200 Affordable i Affordable Rent i Home Pdce $492 r $78,200 $797 I $126,650 $1,222 i $194,200 $985 ~ $156,500 Maximum affordable home price based on a 30-year loan at 7.5% interest, assuming that the homebuyer can afford to pay a 10% downpayment and dosing costs. Assuming that the potential homebuyer within each income group has sufficient credit, downpayment (10%), and maintains affordable housing expenses (i.e. spends no more than 30% of their gross income on the mortgage, taxes, and insurance), the maximum affordable home price can be determined for each income group. Table 4-14 shows the maximum housing prices affordable to the various income groups. Based on the median home prices shown in Table 4-13, housing ownership opportunities are available in Temecula for Low and Moderate Income households, although Very Low Income households would not be able to afford median prices housing in the City. [1. Needs * July I T, 2000 Page 4-15 CITY OF TEMECULA Housing Element Most condominiums are affordable to both Low and Moderate Income households. In addition, mos,t two-bedroom houses and some three- and four-bedroom houses are affordable to Low and Moderate Income households. Rental Housing Current rental information for private rental units in Temecula was obtained through a 1998 market study conducted for Old Town Temecula. The study surveyed 13 apartment complexes containing a total of 3,120 units. The large majority (70%) of the units in Temecula are two-bedroom units. In 1998, the average rent in Temecula was $515 for a one-bedroom unit, $625 for a two-bedroom unit, and $695 for a three- bedroom unit. Based on the household income limits identified in Table 4-14, a Low Income household can affordable to pay $797 per month, while a Moderate Income household can afford to pay up to $1,222 per month. Based on these limits, Low and Moderate Income households can afford to live in Temecula even if rents have increased somewhat since the survey. As Very Low Income households can only afford to pay $492 a month in rent, they will not be able to afford market rate rants without paying in excess of 30% of their gross income. Often large households with Very Low Incomes have to resort to smaller units in order to save on housing costs, but overcrowding typically occurs. 6. Assisted Housing at Risk of Conversion Inventory of Assisted Housing State Housing Element law requires cities to prepare an inventory including all assisted multi-family rental units which are eligible to convert to non-low income housing uses due to termination of subsidy contract, mortgage prepayment, or expiring use restrictions. Under Housing Element law, this inventory is required to cover an evaluation period following the statutory due date of the Housing Element (July 1, 2000). Thus, this at-risk housing analysis covers the period from July 1, 2000 through June 30, 2010. Table 4-15 provides an inventory of the City's assisted multi-family housing stock by various government assistance programs. This inventory includes all multi-family rental units assisted under federal, state, and/or local programs, including HUE} programs, state and local bond programs, redevelopment programs, and local density bonus or direct assistance programs. 1I. Needs * Julyl 7, 2000 Page 4-16 CITY OF TEMECULA Housing Element Table 4-15 Assisted Housing Inventory and At Risk Status Project Temecula Villas (28837 Pujol St.) Woodcreek (4220 Morago Rd.) Rancho California {29210 Stonewood Rd.) Rancho West (4220 Main St.) Rancho Creek (28464 Felix Valdez Rd.) Mission Village Apartments (28497 Pujol St.) Oaktree (42176 Lindley Lane) Creekside (28955 Pujo(St.) Total Prolect Units 96 344 55 Program Section 8 New Const. Mortgage Revenue Bond Section 8 New Const. Section 221(d)4 150 i RDN ] HOME 30 RDA 38-existing 38-under construction 40 i48 Source: City of Ternecula, September 1999. RDA Revenue Bond FmHA New Const. Section 515/Section 8 FmHA New Con. Section 515 Eadiest i # of Units At Conversion Date i Risk 6/1999 48 (expired) 3/31/2003 71 3/15/2004 55 4/8/2026 150 9~30~2026 30 7/16/2028 38-existing 38-under construeion 818/2004 40 8/22/2036 43 The Section 8 contract for one apartment complex, Temecula Villas (28837 Pujol Street), expired in June 1999. The owner has not entered into an agreement with the Temecula Redevelopment Agency to accept additional funding in exchange for preserving the affordability of the units, nor are Section 8 vouchers accepted at the complex. The owner plans on renting the units at market rate. At-Risk Housing Conversion Potential Oaktree, Woodcreek, and Rancho Califomia complexes are the only housing developments that may be at risk between July 1, 2000 and June 30, 2010. The details of each project are discussed below. Oaktree: The 40-unit Oaktree project was financed through FmHA-New Construction Section 515 loans. While this project has the potential to expire in 2004 with prepayment of the loan, due to the nature of the program it is extremely unlikely that the Oaktree project will be permitted to prepay and convert to market-rate rents. To qualify for prepayment and conversion, the owner of the project must prove that the affordable, rural housiiig provided by the project is not needed. Discussions with FmHA representatives indicate that few farm housing projects have ever been able to document that affordable housing is no longer needed. Therefore, the affordable housing restrictions on Oaktree are expected to continue for the entire duration of the loan. Also, additional incentives are often offered to owners of affordable housing financed under the FmHA New Construction Section 515 program to encourage the continued affordability of the units. Since it is not anticipated that the Oaktree project II. Needs · Julyl 7, 2000 Page 4-17 CITY OF TEMECULA Housing Element will convert during the Housing Element planning period due the constraints described above, preservation of this affordable housing complex is not analyzed below. Woodcreek: The 344-unit Woodcreek project was financed with a multi-family mortgage revenue bond. Under the bond program, 20% (71) of the project units are required to be reserved for Low Income tenants for the greater of 15 years or as long as the bond is outstanding. The Low Income use restriction on the 71 units is due to expire in March 2003. Rancho California: This 55-unit project was developed with a HUD-insured Section 221(d)4 mortgage loan. This mortgage loan maintains a market rate interest and places no deed restriction on the project to maintain the units as affordable housing. To ensure affordability of these units, HUD provided a 20-year Section 8 contract for the 55 units subsidizing the rent payments by tenants. This Section 8 contract is due to expire in March 2004. Preservation and Replacement of At-Risk Housing Cost Analysis Preservation of the at-risk projects can be achieved in four ways: 1) facilitate transfer of ownership of the at-risk properties to non-profit organizations; 2) purchase of affordability covenants; 3) provide rental assistance to tenants using funding sources other than Section 8; and 4) construct or purchase replacement affordable units. Transfer of Ownership: By transferring ownership of at-risk projects to non-profit housing organizations, long-term, low income use of those projects can be secured, and the project will be eligible for a greater range of government assistance programs. Of the two at-risk housing development within Temecula, transferring ownership to a non- profit is only appropriate in the case of Rancho Califomia. Since only 20% of the Woodcreek complex is affordable to lower income households, it is not cost-effective to purchase the entire apartment complex. Table 4-16 presents the estimated market value for the Rancho Califomia project to establish an order of magnitude for assessing preservation costs. According to development experts, current market values for the at-risk project can be estimated on the basis of the project's potential annual income, operating expenses and building condition. As shown in Table 4-16, the estimated market value of the Rancho California project is $4 million. However, unless some form of mortgage assistance is available to the non-profit organizations, rental income from the lower income tenants would not likely be adequate to cover the mortgage payment, and rental subsidy would be required. II. Needs * Julyl7, 2000 Page 4-18 CITY OF TEMECULA Housing Element Size of Units 2-Bedroom 3-Bedroom 4-Bedroom Total Gross Operating Incoroe Annual Operating Net Annual Income Market Value Table 4-16 Value of At-Risk Housing Units Rancho California Apartments Number of Units in Project 22 22 11 55 $373,065 $37,307 $335,759 $4,029,102 Market valve for Rancho California Aparanents is estirnated with fie following assumpbens: 1. Old Town Temec~la Market Study - average market rent for a 2-bedroorn is $5I 5, 2- bedroom is $625, 3~:Jroom is $695, and a 4-bedmorn is estimated to be 10% higher than a 3-bedroom for an average rent of $765. 2. Vacancy Rate = 5% 3. Annvelngeratingexpenses=10%ofgrossrevenues 4. Market Value = Annual net project income * murdplicaffi3n factor. 5, Mutij0iicaifonfacforforbeildingsingoodtoexvellentconditmin12. Purchase of Affordability Covenant: Another option to preserve the affordability of at-risk projects is to provide an incentive package to the owners to maintain the projects as low income housing. Incentives could include writing down the interest rate on the remaining loan balance, and/or supplementing the tenant's rent payment or Section 8 subsidy amount from HUD to market levels. To purchase the affordability covenant on the at-risk projects, an incentive package should include interest subsides at or below what the property owners can obtain in the open market. To enhance the attractiveness of the incentive package, the interest subsidies may need to be combined with additional rent subsidies. Rent Subsidy: A total of 55 units in the Rancho California project currently maintain Section 8 contracts that are due to expire within the time frame of this Housing Element. Should annual renewal of project-based Section 8 contracts become unavailable in the future, tenant-based rent subsidies such as Section 8 vouchers and certificates may be used to preserve the affordability of housing. Also, should the owner of Woodcreek decide to convert the 71 units into market rate housing, Section 8, or other forms of rent subsidies may be required to assist the existing tenants. Under the HUD Section 8 program, assistance is only available to Very Low Income households (up to 50% of the County Median Family Income). Thus the discrepancy between the Fair Market Rent for a unit and the housing cost affordable to a Very Low Income household is used to estimate the amount of rent subsidy required for that unit. Table 4-17 estimates the rent subsidies required to preserve the affordability of the assisted units to Very Low Income households. Based on the estimates and assumptions shown in this table, approximately $191,664 in rent subsidies would be required annually to preserve the Rancho Califomia units, and approximately $168,246 1[. Needs · Julyl7, 2000 Page 4-19 CITY OF TEMECULA Housing Element in annual rent subsidies would be required to preserve the Woodcreek units, for a total of $329,910. Table 4-17 Rent Subsidies Required Section 8/Subsidized At-dsk Units Rancho California Woodcreek 2-Bedroom 22 58 3-Bedroom 22 13 4-Bedroom 11 0 Total 55 71 Total Monthly Rent Income Supported by Affordable $26,180 $31,383 Housing Cost of Very Low income Households Total Month Rent Allows by Fair Market Rents $42,152 $45,403 Total Annual Subsidies Required $191,664 $168,246' Notes: 1. Unit mix of Woodcrook Apartment units is based on propodions in the entire project. 2. A two-bedroom unit is assumed to be occupied by a throo-person household, a three- bedroom unit by a four-person household, and a fcor-bedroom unit by a five-person household. Based on 1999 Median Family Income in Riverside County, affordable monthly housing cost for a three-person Very Low Income household is $431, for a four-person household is $490, and a five-person household is $538. 1999 Fair Market Rents in Riverside County is $597 for a twc-bedroom unit, $829 for a three-bedroom unit, and $980 for a four-bedroom unit. Replacement Cost Analysis/Purchase of Similar Units: The cost of developing new housing depends on a variety of factors such as density, size of units, location and related land costs, and type of construction. Based on discussions with a local developer with recent experience building multi-family housing within Temecula, it would be difficult to development multi-family rental housing for less than approximately $100,000 per unit. This cost estimate includes all costs associated with development. To replace the 126 affordable units in Rancho California and Woodcreek apartments would therefore require at least $12,600,000 ($5.5 million for Rancho California and $7.1 million for Woodcreek), provided that vacant or underutilized multi-family residential sites would be available for construction of replacement housing. Instead of constructing new at-risk affordable units, similar existing units may be purchased to replace those units. Based on the value analysis for the Rancho California apamnents, an existing unit would cost approximately $73,250. To replace the 126 affordable units in Rancho Califomia and Woodcreek through the purchase of similar existing units, the total cost would be approximately $9.2 million ($4 million for Rancho Califomia and $5.2 million for Woodcreek). Cost Comparison The cost to build new housing to replace the 126 at-risk units within the Rancho California and Woodcreek projects is high, with an estimated total cost of close to 11. Needs · Julyl7, 2000 Page 4-20 CITY OF TEMECULA Housing Element $12.6 million. This cost estimate is higher than the cost to preserve the units by transferring ownership to a non-profit (in the case of Rancho California) or purchasing 126 similar existing units, which is estimated at approximately $9.2 million. Use of other forms of rent subsidies to replace rental assistance, such as Section 8, does not ensure long-term unit affordability. The cost associated with rent subsidies is lower, requiring a total of approximately $359,910 annually. Overall, transferring project ownership to non-profit organizations combined with financing techniques to lower the mortgage payment, as well as purchase of affordability covenants, are probably the most cost-effective means to preserving the at- risk housing projects in Temecula. II. Needs · July l 7, 2000 Page 4-21 CITY OF TEMECULA Housing Element III. CONSTRAINTS ON HOUSING PRODUCTION Market, governmental, and infrastructure factors pose constraints to the provision of adequate and affordable housing. These constraints may result in housing that is not affordable to Very Low, Low, and Moderate Income households, or may render residential construction economically infeasible for developers. A. Market Constraints 1. Land and Construction Costs A major cost associated with developing new housing is the cost of land. Most vacant residential parcels in Temecula have been subdivided, while others are contained within planned communities. In the Meadow View area, where parcels begin at ½ acre and increase in size, the average price of a vacant parcel ranges from $60,000 to over $100,000. Larger tracts of raw land are available in the surrounding sphere of influence and wine country at a lower cost per acre. However, the potential development of this raw land is constrained by the City's and County's desire to preserve the agricultural lands, as evident in the respective General Plans. Another major cost associated with building a new house is the cost of building materials, which can comprise up to 50% of the sales price of a home. Construction costs for wood frame single-family construction of average to good quality range from $50 to $70 per square foot, while custom homes and traits with extra amenities may run higher. Costs for wood frame, multi-family construction average about $50 per square foot excluding parking. Both the costs of land and construction of a new house are passed on to the homebuyer. As a result, an increase in the cost of land or construction materials will result in a higher housing price for the purchaser. 2. Availability of Mortgage and Rehabilitation Financing Under the Home Mortgage Disclosure Act (HMDA), lending institutions are required to disclose infonnation on the disposition of loan applications. Overall, financing is generally available to homebuyers and homeowners in Temecula. As depicted in Table 4-18, in 1997 overall, 73% of the 1,031 applications submitted for conventional home purchase loans were approved (though not all applicants accepted the loan [i.e. originated the loan]), and only 12% were denied, with the remaining 14% of the applications withdrawn or closed for incompleteness. However, lower income applicants had a lower rate of approval in comparison to the higher income applicants. The disparity between income groups with the availability of funding is also apparent in the approval rate for conventional home improvement loans. Overall, home improvement loans have lower approval rates. In 1997, only 54% of the 430 applications submitted for conventional improvement loans were approved, indicating IlL Constraints · July 17, 2000 Page 4-22 CITY OF TEMECULA Housing Element the continued need for City assistance in providing home improvement loans, especially for lower income applicants. Table 4-18 Disposition of Conventional Loan Applications: 1997 Applicant Income ~ Home Purchase Loans i Total I % % ~ % Total i! Apprns i Odginated/ Denied i Other Appl'ns Approved* Low Income 106 ! 68.9% 14.1% ~ 17.0% 34 (<80% MFI) Moderate Income 183 i 70.5% 16.4% ~ 13.1% 108 38.0% (80-119% MFI) Upper Income i 686 ] 76.7% 10.8% 12.5% 288 60.1% (>+120% MFI) Not Available ! 56 i 51.8% 16.1% 32.1% 0 0 Total i 1,031 i 73.4% 12.4% 14.1% 430 54.2% * Odginated Loan is a loan that has been approved and accepted by the apelicent. Source: Home Mortgage Disclosure Act (HMDA) data for 1997 Tabulated with the Centrax software. Home Improvement Loans % % Ohginated/ Denied Approved' 55.9% 32.4% 56.5% 34,4% 0 39.8% % Other 11.8% 5.6% 5.6% 0 6.0% As shown in Table 4-19 below, lower income applicants fared better in acquiring govemment backed home purchase loans. Govemment backed loans include FHA- insured, VA-guaranteed, and FmHA-insured loans. Overall, 77% of the loan applications were approved (though not all were originated). Moderate Income applicants had a higher rate of approval (81%) when compared to the Upper Income applicants (77%). Overall, government backed home improvement loans had a very low average rate of approval (38% overall approval rate), again indicating a need for further assistance for home improvement projects. Low Income (<80% MFI) Mederate Income (80-119% MFI) Upper Income (>+120% MFI} Not Available Total Table 4-19 Disposition of Government Backed Loan Applications: 1997 Applicant Income Total AppFns 116 328 380 Home Purchase Loans % % Odginated/ Denied Approved* 74.1% 12,1% 80,8% 10.7% 76.8% 14.2% 37 59.5% 13.5% 861 77.2% 12,5% % Other 13.8% 8.5% 8.9% 27.0% 10.2% Home Improvement Loans Total % % Appl'ns Originated/ Denied Approved* 12 0% i 66.7% 58 36.2% i 39.7% 101 45.5% i 33.7% 6 16.7% i 83.3% 17.7 38.4% i 39.5% · Ohginated Loan is a loan that has been approved and accepted by the applicant. Source: Home Mortgage Disclosure Act (HMDA) data for 1997. Tabulated with the Centrax software. % Other 33.3% 24.1% 20.8% 0% 22.0% IIl. Constraints * July 17, 2000 Page 4-23 CITY OF TEMECULA Housing Element B. Governmental Constraints 1. Land Use Controls The Land Use Element of the Temecula General Plan and corresponding Development Code provide for a range of residential types and densities dispersed throughout the City. The current Land Use Element has designated 10,295 acres (63%) of the City's total land inventory for residential uses, including: single-family homes, multi-family units, and mobile homes. Residential densities in Temecula cover a wide spectram, including the following categories: · Hillside Residential (HR) (0-0.1 unit/net acre) · Very Low Density Residential (VL) (0.2-0.4 unit/net acre) · Low Density Residential-1 (L-I) (0.4-1 unit/net acre) · Low Density Residential-2 (L-2) (1-2 units/net acre) · Low Medium Density Residential (LM) (3-6 units/net acre) · Medium Density Residential (M) (7-12 units/net acre) · High Density Residential (H) (13-20 units/net acre) These residential categories provide for a range of housing types to be developed in Temecula. The City has set target levels for density for the Hillside (0.1 unit/acre); Very Low (0.3 units/acre); Low (1.3 units/acre); and Low Medium (4.5 units/acre) Density Residential designations. Only projects that provide amenities or public benefits will be allowed to exceed the target level. The City has not set densiW target levels for the Medium and High Density Residential categories in order to facilitate the development of affordable housing. 2. Residential Development Standards Temecula's residential development and parking standards are summarized in Tables 4- 20 and 4-21. Residential standards have been adopted by the City to protect the safety and welfare of its residents. The Development Code and General Plan allow for modification and flexibility in the development standards through the provision of a Village Center Overlay and Planned Development Overlay. Flexibility in the planning for overlay areas is allowed to promote a greater range of housing opportunities within the City. Diversityof housing, including affordable housing is one of the performance standards for the Village Center Overlay. The Planned Development Overlay Zoning District also encourages the provision of additional housing opportunities forthe community. Additional flexibility in development standards is also provided in the Development Code through the use of variable setbacks. This flexibility allows for the creative site planning, especially for irregular sites. Ill. Constrmnts · July 17, 2000 Page4-24 CITY OF TEMECULA Housing Element Table 4-20 Residential Development Standards Minimum Net Lot Area (square feet) Minimum Average Net Lot Area per Dwelling Unit Maximum Dwelling Units Per Acre~ LOT DIMENSIONS Minimum Lot Frontage at Front Property Uee Minimum Lot Frontage for a Flag Lot at Front Property Une Minimum Width at Required Front Setback Area Minimum Average Width Minimum Lot Depth SETBACKS Minimum Front Yard2 Minimum Comer Side Yard Minimum Intehor Side Yard3 Minimum Rear Yard Maximum Height Maximum % of Lot Coverage Open Space Required Private Open Space/Per Unit Notes: HR i VL 400,000 i 100,000 10 acres 0.1 0.3 50~. 4Oft 40ft. 30ft 100ft 100ft. 100ft. 80~. 150fi. 120ft 40ft. 25~. 40ft. 15ft 10ft. 10ft. 20ft. 20ft. 35ft 35ft 10% 20% 90% 70% NA NA L-1 L-2 i LM M 40,000 20,000 i 7,200 7,200 1.0 acre i 0.5 ac~e i 7,200 s.f. i 3,600 s.f. 1.0 1.3 ~ 4.5 12.0 40ft 30ft. 30ft. 30~. 30~. 25fi. 20ft. 20~. 70~. 50ft. 50ft 40~. 70~. 60~. 50~. 50~. 100ft 9011. 80ft 100ft 25ft. 25ft.2 20ft2 20ft2 15ft 15~. '15ft 15fl. 10ft. 10ft. Vadable~ Veqable3 20~. 20ft. 20~. 20ft. 35ft. 35ft 35ft 40ft 25% 25% 35% 35% 60% 60% 25 % 25% NA NA NA 200 H 7,200 2,400 s.f. 20.0 30ft. 20N. 30ft. 50ft lOOft 2Oft2 15ft Vadable~ 20ft 50ft 30% 30% 150 1. Affordable housing and congregate Care facilities may exceed the stated densities pursuant to the provisions included in Sealion 17.06.050.H of the City of Temecula Development Code. 2. Variable Front Year Setbacks: In order to allow for a more interesting visual image and more flexible site planning yahable setbacks may be permitted in the L-2, LM, M and H disthds. Front yard setbacks shall have an average of at leest twenty feet. Garages with entrances not faring the front yard area may be setback a minimum of 10 feet. Other pertions of a structure may have a front yard setback of a minimum of 10 feet; however, the average setback of 20 feet shall be malntajned. 3. Variable Side Yard Seffiacks: In the LM zoning disthct, the combined side yard setback for both sides must equal at least 15 feet with one side having at least 10 feet to provide potential vehicular access to the mar of the property and shall be located on the same side as the dhveway. In the M and H zoning districts, yahable side yard setharcs may be permitted provided the sum of the side year setbacks is not less than 10 feet and the distanCe between adjacent structures is not less than 10 feet. This permits a zero lot line arrangement with a zero setback on one yard and 10 feet on the opposite side yard. Source: The City of Temecula Development Code. Table 4.21 Parking Space Requirements Land Use Single-family Unit Duplex, Thplex Multi-family Units (12 units or less) - 3 or fewer bedrooms Multi-family Units (13 or more units) -3 or fewer beqreoms Mobilehome Park Second Unit Granny Flat Senior Citizens Housing Complex/COngregate Care Source: City of Temecula Development Code Required Parking Spaces 2 enclosed spaCes 2 covered spaces/units, plus 1 guest spaoo/4 units · 2-5 units: 2 cevereq spaces/units, plus 2 guest spaCes · 6-12 units: 2 cevemd spaces/unit, plus 3 guest spaces · 1 covered space and ',/, uncovereq space for each 1 -bedroom unit; · I covereq and 1 uncovered spaCa for each 2-bedroom unit; · 2 covered spaces and ~ uncovered space for each 3-bedroom (or more) unit; plus 1 guest space/6 units, with a minimum of 4 guest spaces. 1 covered space/trailer site, plus 1 guest space/2 trailer sites · 1 covered space for each 2-pedroore (or smaller) unit; · 2 covered spaces for each 3-bedteem (or larger) unit. 1 uncovered space/unit Y, covered space/unit, plus 1 uncovered guest space per 5 units l[l. Constraints · July I7, 2000 Page 4-25 CITY OF TEMECULA Housing Element To provide for additional opportunities for affordable housing, the Development Code and General Plan also allow senior, congregate care, and affordable housing in some non- residential zoning districts. Senior housing is allowed in the Neighborhood Commercial, Community Commercial, Service Commercial, Highway/Tourist Commercial, and Professional Office zoning districts. Congregate care facilities are allowed in the Neighborhood Commercial, Community Commercial, Highway/Tourist Commercial, Service Commercial, and Professional Office zoning districts. Affordable housing projects are allowed in the Professional Office zoning district. 3. Provisions for a Variety ofHousing Housing Element law specifies that jurisdictions must identify adequate sites to be made available through appropriate zoning and development standards to encourage the development of a variety of types of housing for all income levels, including mobile homes, congregate care facilities, senior housing, emergency shelters, and transitional housing. The following paragraphs describe the City's provision for these types of housing. Mobile Homes/Manufactured Housing: Temecula allows for the provision of manufactured housing in all of its residential zoning districts. Mobile home parks are allowed with a conditional use permit in all of the residential zoning districts. Manufactured housing must be certified according to the National Mobile Home Construction and Safety Standards Act of 1974 and conform to all other development and use requirements applicable to the primary units in the zoning district. The units must stand on a permanent foundation and the materials used for the siding must be approved by the Planning Director. Senior Housing/Affordable Housing: Senior and affordable housing are permitted in the High, Medium, and Low Medium Density Residential zoning districts, with approval of a development plan. The maximum density allowed for senior housing that complies with the City's affordable housing provisions, including the density bonus, is: 30 units/acre for High Density Residential, 20 units/acre for Medium Density Residential, and 8 units/acre for Low Medium Density Residential. For the approved Specific Plans, the maximum density, including the density bonus, is not allowed to exceed 50% of the target density in the planning area. Senior housing is also allowed in the Neighborhood Commercial, Community Commercial, Service Commercial, Highway/Tourist Commercial, and Professional Office zoning districts. Senior housing constructed in the Neighborhood Commercial zone will be developed consistent with the development and performance standards allowed in the Medium Density Residential zoning district. For the Community Commemial, Service Commemial, Highway/Tourist Commercial, and Professional Office zoning districts, senior housing will be developed consistent with the development and performance standards allowed for the High Density Residential zoning district. Affordable housing developments are entitled to receive at least a density bonus of 25% in each residential zoning district. The maximum densities for affordable housing lII. Constraints · July 17, 2000 Page 4-26 CITY OF TEMECULA Housing Element projects, including the density bonus, are: 30 units/acre for High Density Residential, 18 units/acre for Medium Density Residential, and 8 units/acre for Low Medium Density Residential development. For the approved Specific Plans, the maximum density, including the density bonus, is not allowed to exceed 50% of the target density in the planning area. Affordable housing projects are also allowed in the Professional Office zoning district up to 30 units/acre with a conditional use permit. Affordable housing projects, including affordable senior projects may also be granted at least one development concession by the City as an incentive for the provision of affordable housing. The potential concessions include: · An increase in the amount of required lot coverage; · A modification to the setback or required yard provisions; · An increase in the maximum allowable building height; · A reduction in the amount of required on-site parking; · A reduction in the amount of on-site landscaping, except that no reduction in on-site recreational amenities may be approved unless the affordable housing is in close proximity with easy access to a public park with recreational amenities; · A reduction in the minimum lot area; or · Approval of an affordable housing project in the Professional Office zone with the approval of a conditional use permit. Congregate Care: Congregate care facilities are not limited specifically to the density requirements as long as all of the development standards for the zoning district are met. Congregate care facilities are allowed in the Low-2 Density Residential, Low Medium Density Residential, Medium Density Residential, High Density Residential, Neighborhood Commercial, Community Commercial, Highway/Tourist Commercial, Service Commercial, and Professional Office zoning districts. Second Units: The City of Temecula allows second units in all of the residential districts where a detached single-family unit exists and the owner occupies either the primary or secondary unit. Second units cannot be sold, but may be rented. The second unit must be compatible with the design of the primary dwelling unit and meet the size and parking requirements identified in the Development Code. Emergency Shelters/Transitional Housing: Emergency shelters and transitional housing is permitted in the Medium Density and High Density Residential districts. These uses are also permitted in other residential districts with a conditional use permit. Emergency shelters are also permitted with a conditional use permit in the Neighborhood Commercial, Community Commercial, Highway/Tourist Commercial, Service Commercial, Professional Office, Business Park, and Light Industrial zoning districts. II1. Constraints · July 17, 2000 Page 4-27 CITY OF TEMECULA Housing Element 4. Development and Planning Fees The cost of d~velopment is a constraint to the implementation of affordable housing projects. Typically, the cost of developing raw land is significantly increased by the various regulations and fees local governments impose on developers. The City of Temecula charges various fees and assessments to cover the cost of processing permits and providing certain services and utilities. Table 4-22 summarizes that City's planning fee requirements for residential development, while Table 4-23 depicts the City's development fees for residential development. Comparing the cost of one jurisdiction's development and planning fees to another is difficult since each jurisdiction calculates and applies its fee schedule in its own unique way. While no recent studies available to the general public have been completed in Riverside County to compare the fees charged by various jurisdictions, a 1991 County of Riverside Administrative Office (CAO) study compared the cost of developing a 50- unit subdivision in various communities. In this study, Temecula ranked in the top three of jurisdictions for development fees charged. IIL Constraints * July 17, 2000 Page 4-28 CITY OF TEMECULA Housing Element Proiect Type Table 4-22 Planning Fee Schedule City of Temecula City of Temecu~a Fee Planning and Zoning Conditional Use Permit - New Building ~.z3.4 Conditional Use Permit - Existing Building1 Development Agreement Development Plan - Less than 10,000 sf (Administrative) Development Plan - Less than 10,000 sf Development Plan - Over 10.000 sf ~.z3,. General Plan AmendmenFz3 Single Family Residence and Additions Vadance1 Zoning Amendment (Text Changes, Map Changes) Zoning Amendment (Specific Plan) Subdivisions Ceaificate of Land Division Compliance (fee per parcel) Ceaificete of Land Division Compliance w/Waiver of Final Parcel Map (fee per parcel) Lot Une Adjustment Merger of Continuous Parcel Minor Change (Parcel Map) Minor Change (Tract Map) Pareel Map - Tentative (Residential) w/Waiver of Final Mapu.3.s Parcel Map - Tentative (Residential) w/o Waiver of Final Map~2-3.s Parcel Map - Vesting Tentative Mapt.z3.5 Tract Map - MultM:amily-Tentative Statuton/Condo Subdivision Map Filing~.z3.5 Tract Map - Multi-Family-Revised StatutoP/Condo Subdivision Map Filings.2.3.5 Tract Map - Single Family Residential Tract (Sewers) Tract Map - Single Family Residential Tract (Sub-Surface Disposal) ~,2.3,5 Tract Map - Single Family Residential Tract (Revised Tentative Subdivision Map) u.3,s Tract Map Besting Tentative Single Family Residential Tract~.z3,s Miscellaneous Chargee CEQA (Draft EIR) ~ Old Town Architectural Review 1. Add CEQA Fee of $613+$5/gross acre (if required) 2. Add UC Regents Fee of $25 (if required) - not appliceble to duplicate applications 3. Add Traffic Study Fee of $780 (if required) 4. Add DRC Landscape Fee of $200 5. Add per lot and per gross acre fee (depends on specific projed) Source: Temecula Abddged Application Fee Schedule (June 4,1998) $5,837 $888 $4,550 $190 $3,540 $5,880 $5,587 $30 $1,954 $3,617 $15,578 $1,093 $837 $834 $714 $729 $741 $3,735 $3,346 $7,734 $7,085 $6.007 $6,000 $5,000 $3,861 $7,120 $20 ,artment of Environmental Health Fee $234 $234 N/A N/N $136 $136 $59 N/A $120 $61 $197 $138 N/A $72 N/A N/A N/A $389 $675 $424 $528 $203 $528 $424 $528 $395 N/A IlL Constraints · July 17, 2000 Page 4-29 CITY OF TEMECULA Housing Element Development Fee Street System Improvements Traffic Signals and Traffic Control Systems Coq~orete Facilities Fire Protection Facilities Parks and Recreational Improvements Ubrades Total Source: City of Temecula, 1999 Table 4-23 Development Fees City of Temecula Land Use Residential Attached Residential Detached Residential Attached ResidentiaJ Detached Residential Attached Residential Detached Residentia] Attached Residential Detached Residential Attached Residential Detached Residential Attached Residential Detached Residential Attached Residential Detached Fee/UnR $517 $737 $78 $110 $119 $224 $42 $56 $1,222 $1,629 $158 $210 $2,136 $2,966 5. Building Codes and Enforcement The City of Temecula has adopted the Uniform Building Code (UBC) and has not made any additional modifications to the UBC. This Code is considered to be the minimum necessary to protect the public health, safety, and welfare. The City is responsible for the enforcement of the UBC. 6. Local Processing and Permit The evaluation and review process required by City procedures contributes to the cost of housing in that the holding costs incurred by developers during the review period are ultimately manifested in the umt's selling price. The administrative approval process (which includes development plans that are less than 10,000 square feet and are exempt from the California Environmental Quality Act [CEQA]) is administered by the Community Development Department and other involved agencies, and does not require review by the City Council nor Planning Commission. The average time for administrative approval is five weeks. Once approval is given, the property owner must submit the approved plans to the Community Development and Public Works Departments to obtain the required permits. Discretionary projects require review and approval by City staff, affected agencies, City Council, and Planning Commission. The average period until a discretionary project reaches the public hearing stage is 11 weeks. An additional five weeks may be required after the public hearing until the final approval with associated conditions is given. This processing time frame is not considered excessive. The City has not adopted any special design or environmental review processes that would add additional time to the processing period. In addition, since much of the Ill. Constraints · July 17, 2000 Page 4-30 CITY OF TEMECULA Housing Element remaining vacant residential land is contained in Specific Plan areas, the environmental review required under CEQA has been completed and the development standards required have been identified, expediting the approval process of projects within the Specific Plan area. C. State Tax Policies and Regulations I. Article 34 ofthe California Constitution Article 34 was enacted in 1950. It requires that low rant housing projects developed, constructed, or acquired in any manner by any State or public agency, including cities, receive voter approval through the referendum process. The residents of Temecula have not passed a referendum to allow the City to develop, construct, or acquire affordable housing. While California Health and Safety Code further cladties the scope and applicability of Article 34 to exclude housing projects that have deed-restriction on less than 49% of the units or rehabilitation/reconstruction of housing projects that are currently deed- restricted or occupied by lower income persons, Article 34 still constitutes an obstacle for local governments to be directly involved in production of long-term affordable housing. 2. Environmental Protection State regulations require environmental review of proposed discretionary projects (e.g., subdivision maps, use permits, etc.). Costs resulting from fees charged by local government and private consultants needed to complete the environmental analysis, and from delays caused by the mandated public review periods, are also added to the cost of housing and passed on to the consumer. However, the presence of these regulations helps preserve the environment and ensure environmental safety to Temecula's residents. In addition, much of the remaining vacant residential land is located within approved specific plan areas for which the required environmental review has been completed. D. Infrastructure Constraints Another factor adding to the cost of new construction is the cost of providing adequate infrastructure (major and local streets; curbs, gutters, and sidewalks; water and sewer lines; and street lighting) which is required to be built or installed in new development. In most cases, these improvements are dedicated to the City, which is then responsible for their maintenance. The cost of these facilities is borne by developers, and is added to the cost of new housing units, and is eventually passed on to the homebuyer or property owner. Ill. Constraints · July 17, 2000 Page 4-31 J CITY OF TEMECULA Housing Element The City has experienced great levels of growth over the past few years. Due to this growth some of the streets in Temecula are impacted by traffic generated by new development. The City is in the process of revising its Circulation Element to address these impacted streets. Until the cimulation system is expanded to provide a sufficient level of service, the currently impacted circulation system will constrain the amount of new development that can occur within the City. In addition, two areas of the City, designated for residential uses, are partially developed and do not have sewer service. Development of this land is limited to Very Low Density Residential uses. The majority of the remainder of future residential development within the City will occur in master planned communities, or on sites adjacent to existing infrastructure. As a result, residential development will not be constrained by the lack of sufficient infrastructure in the remainder of the City. E. Environmental Constraints The City is impacted by various environmental hazards that include active fault traces, liquefaction and subsidence, steep slopes, and flooding. These natural hazards form environmental constraints to residential development by threatening the public safety. To protect the health, safety, and welfare of residents in Temecula, the City has adopted regulations that limit development within areas of nigh risk, and/or require design standards that can withstand natural hazards. Flood Plain (FP) Overlay District: The City has applied a Flood Plain Overlay District to portions of the City that are threatened by flooding hazards. The overlay district includes design requirements that must be met for new construction and substantial improvement of structures witnin the district. These design standards have been adopted to reduce the flooding hazards threatening people and structures witnin the overlay district. 1II. Constraints · July 17, 2000 Page 4-32 CITY OF TEMECULA Housing Element IV. HOUSING RESOURCES A. Sites for Housing Development 1. Vacant Sites An important component of the Temecula Housing Element is the identification of sites for future housing development, and evaluation of the adequacy of this site inventory in accommodating the City's share of regional housing growth as determined by the Western Riverside Council of Governments (WRCOG). As part of this Housing Element update, the City conducted a parcel-by-parcel vacant residential site analysis, for land outside of approved specific plans, based on data obtained ~'om the City's geographic information system (GIS). Table 4-24 quantifies the number and type of housing units that could be accommodated on the City's vacant residential sites located outside of approved Specific Plan areas. The City also conducted a records search and visual survey using aerial photos and site visits to estimate the remaining residential development capacity by number and type of housing within the approved Specific Plans. Table 4-25 summarizes the housing development potential remaining in the specific plan areas. Overall, the vacant site inventory yields an estimated development capacity of 10,669 units. The residential densities identified in the Land Use Plan are generally lower than other urbanized areas primarily due to the existing rural character of the community. The abundance of relatively cheap land in Riverside County has allowed for the development of housing that sells for less than the housing in Orange, Los Angeles, and San Diego Counties. Table 4-24 Residential Development Potential of Vacant Land Outside Specific Plan Areas Density Range 0,0.1 DU/AC 0.2,0.4 DU/AC 0.5-2 DU/AC 3.6 DU/AC 7-12 DU/AC 13-20 DU/AC General Plan Designations Hillside Very Low Low Low Medium Medium High Total Target Density Target Income Group 0.1 DU/AC Upper 0.3 DU/AC Upper 1.3 DU/AC Upper 4.5 DU/AC Moderate 12 DU/AC* Moderate 20 DU/AC* LowNery Low Vacant Acreage 47 1,089 218 539 167 47 2,107 Net Dwelling Units 5 327 283 2,426 2,004 940 5,985 · The City of Temecula allows the development of Medium and High Density residential land at the maximurn density. Source: City of Temecula, September 1999. IV. Housing Resources · July 17, 2000 Page 4-33 CITY OF TEMECLrLA Housing Element The Temecula Development Code allows for an increase in density in the High, Medium, and Low Medium residential designations if the development is senior housing, affordable housing or a congregate care facility. Densities for senior housing may be increased in High Density to 30 units/acre, in Medium Density to 20 units/acre, and in Low Medium Density to 8 units/acre. Density bonuses of at least 25% may also be granted for affordable housing projects, potentially increasing the maximum density, including density bonus, to 30 units/acre in High Density, 18 units/acre in Medium Density, and 8 units/acre in Low Medium Density. Density bonuses may also be granted to Specific Plans areas, as long as the maximum density, including the bonus, does not exceed 50% of the target density in the planning area. Table 4-25 Remaining Approved Residential Development for Existing Specific Plans Speo~c Plan/Land Low Density Use Designations~ (.4-2 DU/AC) (Target Income) (Upper) Cam Dos Vetdes 16 Margadta Village 19 Paloma Del Sol 0 Rancho Highlands 0 Westside i 0 Total ~ 35 Low Medium/ Medium High Medium Density Density (2-5 DU/AC) (5-8 DU/AC) (Upper) (Upper) 226 0 351 i 764 917 i 941 01 0 OF 0 1.494 I 1,705 Land use categories titles for Specific Plans vary from those used in the Devalo; Very High High Density2 Densityz (8-14 DU/AC) (14-20 DU/AC) (Moderate) (Low/Very Low) 0, 0 175 0 0 i 590 0 i 383 0 i 3023 175 ~ 1,275 ,ment Code, Total Units 242 1,309 2,448 383 302 4,684 2 The antidpated density for High Density Residential in edopled Spedtic Plans, except for the Westside Specific Plan, is 11.6 DU/AC and 15.8-16.2 DU/AC for Very High Density Residential. 3 The Westside Specific Plan allows 13 to 20 units per acre. · The Old Town Specific Plan is a redevalopment plan for the Old Town Distdct and does not identify a specific number of housing units that will be built. Source: City of Temecula, September 1999 2. Targeted Sites Within the Old Town Specific Plan area, the Temecula Redevelopmerit Agency has identified several sites with the potential for residential redevelopment. Currently, the Redevelopment Agency is securing site control of three sites, totaling 6.2 acres. While the scope of housing development to occur on these sites has not been determined, given the Agency involvement, some form of affordable housing development can be expected. 3. Second Units In addition to development on vacant land, the City recognizes the potential for additional new development of affordable housing in the form of second units. The City has incorporated development standards for second units into its Development Code. The Code allows for second umts in all residential zoning districts where there is an existing owner-occupied single-family detached dwelling unit if the following conditions are met: IV. Housing Resources * July 17, 2000 Page 4-34 CITY OF TEMECLrLA Housing Element · The unit may be rented, but not sold; An attached second unit's floor area is no more than 400 square feet, and does not exceed 30% of the floor area of the primary residential unit; · A detached second unit has a floor area between 400 and 1,200 square feet; · The application for the second unit is signed by the owner of the parcel and primary residential dwelling unit; · The design of the second unit is compatible with the primary dwelling unit and the surrounding neighborhood; and · There is one covered parking space for each two-bedroom (or smaller) second unit or two covered parking spaces for each three-bedroom (or larger) second unit. Residential Development Potential Compared with Temecula's Regional Housing Needs The WRCOG has adopted a Regional Housing Needs Assessment (RHNA) for its member cities. For Temecula, WRCOG has established the City's share of regional housing needs as 7,798 additional units for the period of January 1,1998 to June 30, 2005, as of the writing of this Drafl Housing Element. Table 4-26 shows the breakdown of these 7,798 dwelling units into income categories. Housing units constructed and issued certificates of occupancy between January 1, 1998 and June 30, 2000 can also be counted toward fulfilling the RHNA for this Housing Element cycle. According to City records, a total of 1,408 new single-family dwelling units and 834 multi-family dwelling units have been approved, issued building permits, or constructed since January I, 1998, as of the writing of this Draft Housing Element. Of these newly approved or constructed housing units, 38 are part of the Mission Village Apartments affordable housing development. One half (19 units) of these 38 units will be affordable to Very Low Income households, and the remainder (19 units) will be affordable to Low Income households. Two senior apamuent projects, at densities of 30 units/acre, have been approved for a total of 385 units. Based on the allowable density, these senior units could be affordable to Very Low Income households. Since the units are larger than the average unit and include additional amenities, the actual rent will be higher than typically found in units at a density of 30 units/acre and are assumed to be affordable to Low Income households. Based on the housing cost and affordability analysis contained in Section II of this Housing Element, 50% of the remaining 411 newly constructed multi-family units will most likely be affordable to Low Income households and 50% affordable to Moderate Income households. IV. Housing Resources · July 17, 2000 Page 4-35 CITY OF TEMECULA Housing Element Table 4-26 Regional Housing Growth Need by Income Group i Total RHNA Income Group i (1/1/1998-6/30/2005) Very Low Income' '. 1,403 Low Income ] . 1,014 Moderate Income ! 1,716 Upper Income i 3,665 Total i 7,798 Housing Units Constmcted/Approved ( 1/1/1998-6130/1999) 19 610 510 1,103 2,242 RHNA Remaining 1,384 404' 1,206 2,562 5,556 ' Site Inventory Feasible Units Capacity 2,215 4,605 3,849 10,669 · Affordable housing projects within the High Density Residential zone may quality for a density bonus that would increase the overall density to 30 unitsJacre, thereby providing housing affordable to Very Low Income households. Source: WRCOG, June1999; City of Temecula, July 1999. Of the 1,408 single-family housing units, 189 units were developed at densities less than eight units/acre, and as such are affordable to Upper Income households. One quarter of the remaining 1,219 single-family homes are projected to be affordable to Moderate Income households since the 1999 median cost for a house in Temecula is $195,000 and Moderate Income households can afford approximately $193,000 for a home. The remainder of the newly constructed single-family houses are affordable to Upper Income households. Of the remaining 5,556 RHNA units, 2,994 will need to be affordable to Very Low, Low, and Moderate Income households. Table 4-26 compares the City's RHNA as determined by WRCOG, the affordability level of housing units cons~'ucted since January 1998, and development capacity in the City. The City's site inventory demonstrates the availability of adequate sites to adch:ess the projected growth need for lower income groups. However, the difficulties of producing housing affordable to Very Low Income households is acknowledged in Section II of this Housing Element. The site inventory indicates a capacity of 940 units on properties outside of a Specific Plan and 302 units within the Westside Specific Plan area, with a High Density zoning allowing 13 to 20 units per acre. Development in the City's High Density zone is permitted to occur at densities of 20 units/acre, which can be increased to 30 units/acre with a density bonus, potentially creating housing affordable to Very Low Income households. Density bonuses for senior and affordable housing may also be permitted within approved Specific Plan areas as long as the maximum density, including density bonus, does not exceed 50% of the target density in the planning area. IV. Housing Resources · July 17, 2000 Page4-36 CITY OF TEMECULA Housing Element B. Financial Resources 1. Redevelopment Set-Aside Fund State Redevelopment Law provides the mechanism whereby cities and counties within the state can, through adoption of an ordinance, establish a redevelopment agency. The Agency's primary purpose is to provide the legal and financial mechanism necessary to address blighting conditions in the community through the formation of a redevelopment project area(s). Of the various means permitted under State Law for financing redevelopment implementation, the most useful of these provisions is tax increment financing. This technique allows the assessed property valuation within the redevelopment project area to be frozen at its current assessed level when the redevelopment plan is adopted. As the property in the project area is improved or resold, the tax increment revenue generated from valuation increases above the frozen value is redistributed to the redevelopment agency to finance other redevelopment projects. State Redevelopment Law also requires the redevelopment agency to address housing issues for Low and Moderate Income residents in the following ways: · expend 20% of the tax increment revenue to increase and improve the supply of Low and Moderate Income housing; · replace Low and Moderate Income housing which is destroyed as a result of a redevelopment project (replacement housing obligation); and ensure that a portion of all hgusing constructed or substantially rehabilitated in a redevelopment project area be affordable to Low and Moderate Income households (inclusionary obligation). Prior to Temecula's incorporation, the County of Riverside established a Redevelopment Project on July 12, 1988 with the adoption of Redevelopment Plan No. 1-1988. The Project area extends from Interstatel5/State Route 79 interchange north to the City limits. The Old Town is included within the Project area. After incorporation, the City of Temecula assumed responsibility for administering the Project area. Pursuant to State law, the Temecula Redevelopment Agency has established a Redevelopment Housing Fund by setting aside 20% of the tax increment revenue. The Agency anticipates an annual deposit of about $1.4-1.6 million in tax increment over a five-year period, for a total deposit of approximately $7.7 million. Based on the required 20% set-aside, approximately $1.5 million will be available during the five- year period for housing activities. Since set-aside funds are a function of property tax revenues, the amount of future deposits will depend on factors such as market conditions and the timing of new taxable development. IV. HousingResources*July 17,2000 Page4-37 CITY OF TEMECULA Housing Element State law sets forth a variety of options for localities to expend their housing funds, including: · Land disposition and write-downs; · Site improvements; · Loans; · Issuance of bonds; · Land and building acquisition by Agency; · Direct housing construction; · Housing rehabilitation; · Rent subsidies; · Predevelopment funds; and · Administrative costs for non-profit housing corporations. The specific uses of the set aside funds are described in the Housing Plan section of this Housing Element. Section 8 The Section 8 rental assistance program extends rental subsidies to Very Low Income families and elderly who spend more than 30% of their income on rent. The subsidy represents the difference between the excess of 30% of the monthly income and the actual rent. Most Section 8 assistance is issued to the recipients as vouchers, which permit tenants to locate their own housing and rent units beyond the federally determined fair market rent in an area, provided the tenants pay the extra rent increment. The Housing Authority of Riverside administers the Section 8 Certificate/Voucher Program for Temecula. As of April 1999, 22 households were leasing in Temecula with the assistance of Section 8 programs. Of these 22, four households were elderly, and seven were disabled. An additional 138 households living in Temecula were on the waiting list to receive Section 8 rental assistance, 35 of which were elderly and/or disabled. 3. Community Development Block Grant (CDBG) Program The City receives its CDBG funding through the County of Riverside. Based on its population, the City is eligible to receive approximately $300,000 annually from the County. The City has, in the past, used approximately 85% of the CDBG funds for capital projects, such as the Senior Citizen Center Expansion project, and the remaining 15% of the funding is awarded to various public service organizations. No CDBG funds have been used for housing at this time. IV. HousingResources,July 17,2000 Page4-38 J CITY OF TEMECULA Housing Element C. Non-profit Housing Developers The following are several non-profit housing providers interested in developing and/or preserving affordable housing in the City: Coachella Valley Housing Coalition 45-701 Monroe Street, Suite G Indio, CA 92201 (760) 347-3157 · Habitat for Humanity 41964 Main Street Temecula, CA 92591 (909) 693-0460 Jamboree Housing Corporation 2081 Business Center Drive, Suite 216 Irvine, CA 92612 (949) 263-8676 Retirement Housing Foundation 5150 Pacific Coast Highway, Suite 600 Long Beach, CA 90804-3312 (562) 597-5541 D. Infrastructure and Facilities The majority of the land available for residential development is located adjacent to existing infrastructure facilities, or within a Specific Plan area where infrastructure will be provided as part of the development process. As a result, infrastructure facilities will be able to serve most of the future residential development. The one exception to this is the circulation system. As discussed in the Constraints section of this EIR, the existing roadway system within Temecula is highly impacted with traffic generated by new development. Until the cimulation system is expanded to meet the needs of the existing development, the circulation system will constrain future development. E. Energy Conservation As residential energy costs rise, increasing utility cost reduce the affordability of housing. The City has many opportunities to directly affect energy use within its jurisdiction. Title 24 of the California Administrative Code sets forth mandatory energy standards for new development, and requires adoption of an "energy budget". The home building industry must comply with these standards while localities are responsible for enforcing the energy conservation regulations. IV. HousingResources,July 17,2000 Page4-39 ITEM 2 CITY OF TEMECULA AGENDA REPORT TO: FROM: DATE: SUBJECT: August 1, 2000 Growth Management Plan RECOMMENDATION: Provide direction to the Planning Commission and staff on the density and amenity issues associated with the Growth Management Plan (GMP). BACKGROUND: On March 21, 2000 the City Council adopted the Growth Management Program Action Plan which is intended to serve as the City Council's policy for the study and implementation of growth management measures for the City of Temecula. It was the intent of the Council to have staff and the Planning Commission review every development project to ensure consistency with the GMP. On April 24, 2000, this Action Plan was amended. DISCUSSION: There is one element of the GMP that requires some clarification among staff and the Planning Commission. Under the Policy to "Redirect Urban Development to Urban Areas," a goal is to "direct the Planning Commission to consider approving residential projects at the lowest allowable density in each density category. The Commission may consider approving a project above the lowest density if the project provides onsite or community amenities." The Planning Commission has expressed some concerns with what constitutes an amenity when reviewing residential projects. It is the hope of the Planning Commission that this issue can be clarified at this joint City Council\Planning Commission Workshop. FISCAL IMPACT: impacts. Since this staff report is dealing with a Policy issue, there are no fiscal Attachment: Growth Management Action Plan F:\DEPTS~,DLANNING~ebbie~oc.ccworkshop.gmp.doc 1 City of Temecula GROWTH MANAGEMENT PROGRAM ACTION PLAN As Adopted by the City Council on March 21, 2000 This Action Plan is intended to serve as the City Council's policy for the study and implementation of growth management measures for the City of Temecula. Each development project shall be studied by Staff, the Planning Commission and City Council in light of the concerns expressed in this Plan and its action programs. Each project shall be considered on its own merit and in accordance with all applicable federal and state laws and under the City's General Plan and zoning ordinances. 1. Inter-Agency Coordination A. Engage actively in the Riverside County Integrated Plan (RCIP) 1. Appoint Council representatives to monitor the following three (3) Advisory Committees: a. Community and Environmental Transportation Acceptability Process (CETAP) - Ron Roberts. b. General Plan Advisory Committee (GPAC) - JeffComerchero c. Multi-Species Habitat Conservation Plan (MSHCP) - Mike Naggar Provide monthly committee reports to the City Council regarding the status of the respective committees the second meeting of each month. Staff should also participate and summarize meetings to assist the Council representatives. 3. Dedicate staff resources to monitor the Riverside County Integrated Plan (RCIP) process. a. Create Senior Management Analyst position dedicated to the Riverside County Integrated Plan. - Steve Brown b. Hire Project Consultant to completely interface and represent the City of Temecula's interests in every facet of the RCIP. - Sandra Massa-Lavitt F:\Depts\PLANNING\BROWNS\growth nmnagemenfiFinal Growth Management Program 2000.doc 4. Encourage community participation. Provide quarterly publications informing our citizens of the progress of the RCIP. Included in the budget for 2000-2001; a community wide newsletter is planned following the April 27th workshop. b. Provide updated information on the City's web site regarding the City and County regional planning efforts. Provide news releases and other information regarding various public meetings related to the RCIP process. Assist the County in distributing printed materials to any community. Conduct a citizen survey to determine the community's perspective on growth related, as well as, other municipal issues. The survey questions will be balanced and objective and wilt be approved by the City Council prior to distribution. Hold quarterly City Council workshops with County staff to gauge the progress of the RCIP. Deny general plan amendments, change of zones, specific plan amendments, or specific plans within the City that result in increased traffic levels greater than Level of Service "D" at buildout. It is recommended that the City formally request that the County also adopt this proposed policy. Proposed land use intensities outside of the City boundaries must not adversely affect Temecula's quality of life from a traffic or environmental standpoint or the City will consider litigation. Projects with Specific Plan zoning that are consistent with the underlying General Plan densities may proceed. Analyze the circulation system impacts as they relate to proposed land use changes along the 79 Noah Winchester Corridor and the 79 South Corridor. Traffic modeling shall be performed for any changes as part of the Riverside County Integrated Plan process. The City shall verify the results of modeling. 8. Advocate the following policies throughout the RCIP process: a. Address public transportation as it relates to our freeways and connections to urban areas. b. Phase and fund infrastructure to keep pace with proposed development projects. F:\Depts\PLANNING\BROWNS\growth management\Final Growth Management Program 2000.doc 2 c. Preserve significant amounts of land outside of the urban areas as open space. d. Establish urban growth boundaries for Temecula and other communities within the RCIP Planning Area. e. Establish greenbelts and open spaces around communities. Collaborate with the Pechanga Band of Luisefio Indians. 1. Cooperate regarding infrastructure improvements for the betterment of the community. 2. Support the Tribe's efforts to promote self-reliance for the reservation while promoting and preserving Temecula's quality of life. Collaborate with other agencies. 1. Take a strong position against proposed recreational improvements on the Diamond Lake Reservoir unless appropriate traffic mitigation and phasing measures are a condition of approval for those improvements. Redirect Urban Development to Urban Areas A. Focused Review of City/County General Plan Opportunities. 1. Form a City Council General Plan Sub-Committee - Jeff Comerchero and Mike Naggar 2. The Sub-Committee will work with the staff and advisory committee (if an advisory committee is appointed by the Council) to address the following General Plan issues: a. Redistribution ofland uses. b. Cluster densities related to Specific Plans. c. Review multi-family housing issues throughout the City. d. Evaluate opportunities for open space. e. Update the Circulation Element f. Consider other areas as necessary. F:\Depts\PLANNINGXBROWNS\growth management\Final Growth Management Program 2000.doe 3 Evaluate the total number of building permits that may be issued annually to projects that are not covered by a development agreement or a vesting map. B. City Development Project Review Process Direct the Planning Commission to consider approving residential projects at the lowest allowable density in each density category. The Commission may consider approving a project above the lowest density if the project provides onsite or community amenities. Preserve Open Space to Create Buffers and Protect Agriculture and Valuable Habitat Areas A. Acquire vital open space and resource areas. Evaluate a DIF component for the preservation of open space. Consider feasibility of a ¼ cent sales tax ballot measure for the acquisition and preservation of open space. 2. Condition Specific Plans to preserve a significant amount of area for open space. , Maintain large parcel sizes in rural areas. Parcel sizes should increase the greater the distance from urban core areas. Encourage down zoning and parcel merging to maintain large rural lot sizes. 4. Apply for and utilize State Bond Funds (e.g. Propositions 12 and 13) and other grant sources to acquire and preserve open space. 5. Explore potential tax advantages for developers interested in selling land for open space and/or encouraging continued agricultural use. Complete an analysis to the amount of open space remaining in the City and determine the costs per acre, acquisition priority, and implement acquisition funding strategy. Traffic Circulation System Improvements A. Ensure that infrastructure in constructed ahead of new development. Implement the Capital Improvement Program (CIP). This will include construction of freeway overcrossings, bridge crossings, arterial street improvements, etc., as outlined in the City Capital Improvement Plan. This is a 5-year planning and budget document that is reviewed and adopted each year. F:\Depts\pLANNING\BROWNS\growth management\Final Growth Management Program 2000.doe 4 2. Implement Category 1 and 2 street striping and paving improvements. 3. Pursue Measure A and discretionary funds for regional traffic improvement projects. a. Involve CETAP representative. b. Utilize Southwest Riverside Coalition to position region for funding allocation opportunities. 4. Work with other jurisdictions to establish programs and funding sources for construction of required traffic improvements. a. Maximize infrastructure dollars by teaming with other local jurisdictions, particularly the City of Murrieta and the Pechanga Tribe. b. Establish a regional Transportation Uniform Mitigation Fee (TUMF) for construction of regional circulation improvements and work with the City of Murrieta to build a consensus on proposed traffic projects. c. Work with the County to ensure that County development impact fees collected in this area are spent in the southwest area of Riverside County. B. Work with Cal-Trans to develop regional improvements to circulation system. 1. Determine how the RCIP and CETAP will mitigate and address the impact that future growth will have on the 1-15 and 1-215 freeway system. 2. Continue to pressure the State to fund new highway and freeway construction. 3. Analyze feasibility to realigning SR-79 North between Murrieta Hot Springs Road and Interstate 215/15 and making that portion of Winchester Road a city-controlled street. C. Continue to condition new development to ensure that infrastructure is constructed in conjunction with development impacts. 1. Require comprehensive traffic studies for project specific and regional impacts. a. Identify thresholds/criteria to require traffic studies. F:\Depts\PLANNING\BROWNS\growth managemenfiFinal Growth Management Program 2000.doe 5 Require independent traffic analysis, when appropriate on all proposed development projects. This independent analysis would be paid for by the developer but controlled and administered by the City. Require that phased traffic improvements be constructed prior to projected impacts of development. Re-evaluate DIF fees to ensure that appropriate mitigation fees are being charged and the timing of the DIF fees are appropriately collected. The Development Impact Fees should be reviewed on an annual basis. Complete traffic counts on an ongoing basis at major intersections during peak times to ensure that Levels of Service remain at "D" or better. Maximize Existing Transportation Network Efficiency A. Enhance traffic signal and roadway system operations. 1. Hire a traffic signal technician specifically dedicated only to improving the operation of all traffic signals. (this has been done.) 2. Monitor and check traffic signals proactively for coordination and efficiency on a daily basis. 3. Work with CalTrans on traffic signals within the State's right ofway. 4. Provide traffic count information to local employers to assist them in scheduling shift changes and deliveries during peak traffic periods where possible. Identify and Expand Public Transit Opportunities. 1. Work with outside agencies to identify and determine feasibility of external public transit options. a. Establish Mag Lev or High Speed Rail. b. Expand Metrolink. c. Provide High Speed Express Buses. d. Consider other transit opportunities. F:\Depts\PLANNING\BROWNS\growth management\Final Growth Management Program 2000.doe 6 2. Identify and determine feasibility of intemal public transit options, working with outside agencies, as appropriate, including: a. Expand Bus Program in coordination with RTA. b. Acquire alternate fuel vehicles such as electric fuel cell or natural gas (example: electric trolley) where appropriate, through working with transportation agencies. c. Provide direction to staff regarding an electric trolley system. d. Explore the option to integrate the RTA bus system with the school district system to achieve economies of scale and avoid duplication of services. e. Establish a Dial-a-Ride/Smart Shuttle. f. Support a program to provide bus passes to students and the elderly. Support could be in the form of either a direct or partial subsidy to the t?ansit providers. g. Provide Fixed Rail - Monorail - Light Rail. h. Establish a shuttle system to move employees from the west side of the freeway to commercial areas/restaurants within the City. i. Support vanpools for major employers in the Temecula area and support efforts to facilitate ride sharing. 4. Identify Funding Sources for Public Transit options. 5. Develop clean fuel facilities and infrastructure to support new technologies in clean fuel development. ADMINISTRATION The Growth Management Program Action Plan will be annually reviewed by the City Council. F:\Depts\PLANNING\BROWNS\growth n~anagemenfiFinal Growth Management Program 2000.doe 7 ITEM 3 J TO: FROM: DATE: SUBJECT: CITY OF TEMECULA AGENDA REPORT City Manager/City Council/Planning Commission Gary Thornhill, Deputy City Manager August 1, 2000 General Plan Progress Report RECOMMENDATION: That the City Council and Planning Commission provide comments on the Elements (i.e. Land Use, Circulation, Growth Management) that should be examined during the update of the City's General Plan. BACKGROUND: Staff was directed to prepare an update to the City's General Plan as an outcome of a sedes of workshops and public meetings on growth management. A draft Request for Proposal and Request for Qualifications (RFP/RFQ) has been prepared by staff but has not been distributed to potential consultants. Staff has been compiling a comprehensive mailing list of quality out of area firms to receive the RFP/RFQ. A comprehensive discussion with the Council and Commission was deemed necessary in order to incoq~orate all the key issues that should be examined in the revised General Plan. The revised RFQ/RFP will be presented to the General Plan Sub Committee for final concurrence prior to release to the consultants. FISCAL IMPACT: Adequate funds are available in the 2000/2001 budget to coverthe $300,000,00 cost of the General Plan Update Fund from the Consulting Services line item (001-161-999-5248). F:\Dep~PLANNING\GENPLAN\Comp Plan Update~StaffReport-cc workshop 8-1430.doc TEMECULA COMMUNITY SERVICES DISTRICT ITEM 1 MINUTES OF A REGULAR MEETING OF THE TEMECULA COMMUNITY SERVICES DISTRICT JUNE 13, 2000 A regular meeting of the City of Temecula Community Services District was called to order at 8:11 P.M., at the City Council Chambers, 43200 Business Park Drive, Temecula, California. President Comerchero presiding. ROLLCALL PRESENT: 5 DIRECTORS: Nagger, Pratt, Roberts, Stone, and Comerchero ABSENT: 0 DIRECTORS: None Also present were General Manager Nelson, City Attorney Thorson, and City Clerk Jones. PUBLIC COMMENTS No input. CONSENT CALENDAR Award of Construction Contract for the Rancho California Sports Park Parkinq Lot Rehabilitation Project - Project No. PW00-05 RECOMMENDATION: 1.1 Award a contract for Rancho California Sports Park Parking Lot Rehabilitation Project - Project No. PW00-05 to E. A. Mendoza, Inc. of Irvine, California, in the amount of $153,030.00 and authorize the President to execute the contract; 1.2 Authorize the General Manager to approve change orders not to exceed the contingency amount of $15,303.00 which is equal to 10% of the contract amount. (Director Naggar abstained with regard to this item.) 2 Approval of the Plans and Specifications and Authorization to solicit Construction Bids for Maintenance Facility Modifications - Project No. PW00-16 RECOMMENDATION: 2.1 Approve the construction plans and specifications and authorize the Department of Public Works to solicit construction bids for the Maintenance Facility Modifications - Project No. PW00-16. Minutes,csd\061300 1 3 Santa Gertrudis Creek Bike Trail Undercrossincl - Proiect PW97-25CSD Chanqe Order with Granite Construction for additional work RECOMMENDATION: 3.1 Authorize the General Manager to approve Contract Change Order No, 4 for an amount of $93,075.00 above the previously approved 10% contingency for the Santa Gertrudis Creek Bike Trail Undercrossing - Project No. PW97-25CSD. 3.2 Authorize the transfer of funds from the I-15 Southbound Off-Ramp Widening at Rancho California Road Project Account No. 210-165-605-5802 in the amount of $93,075.00 to the Santa Ger~rudis Creek Bike Trail Undercrossing Project Fund - Construction Account No. 210-190-147-5804. (Pulled for separate discussion; see below.) 4 Inclusion of Tracts into Service Level B for Fiscal Year 2000-2001 RECOMMENDATION: 4.1 Adopt a resolution entitled: RESOLUTION NO. CSD 2000-10 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA COMMUNITY SERVICES DISTRICT ACCEPTING CERTAIN TRACTS INTO TCSD SERVICE LEVEL B FOR PURPOSES OF ENERGIZING RESIDENTIAL STREET LIGHTS BEGINNING FISCAL YEAR 2000-200'1 5 Financial Statements for the nine months ended March 31, 2000 RECOMMENDATION: 5.1 Receive and file the Financial Statements for the nine months ended March 31, 2000. MOTION: Director Stone moved to approve Consent Calendar Item Nos. 1-2 and 4-5 (Item No. 3 was pulled for separate discussion; see below). The motion was seconded by Director Naggar and voice vote reflected unanimous approval. CONSENT CALENDAR ITEM PULLED FOR SEPARATE DISCUSSION 3 Santa Gertrudis Creek Bike Trail Undercrossincl - Project PW97-25CSD Chanqe Order with Granite Construction for additional work RECOMMENDATION: 3.1 Authorize the General Manager to approve Contract Change Order No. 4 for an amount of $93,075.00 above the previously approved 10% contingency for the Santa Gertrudis Creek Bike Trail Undercrossing - Project No. PW97-25CSD. Minutes,csd\061300 2 /I 3.3 Authorize the transfer of funds from the I-15 Southbound Off-Ramp Widening at Rancho California Road Project Account No. 210-165-605-5802 in the amount of $93,075.00 to the Santa Gertrudis Creek Bike Trail Undercrossing Project Fund - Construction Account No. 210-190-147-5804. Public Works Director Hughes presented the staff report (as per agenda material), clarifying that there was an error in the engineering quantities; that this error was determined after construction had started; that the work was completed; that the work was necessary in order to complete the project; and that the City may direct staff to pursue possible reimbursement by way of the oonsultant's errors and omissions insurance. Although not disputing the need for the completed work, Director Stone relayed concern with the City incurring the financial responsibility as a result of an error on the part of the consultant. City Attorney Thorson advised that the District must settle with the contractor for the extra work completed and that the approval of this recommendation would not preclude the District from pursuing the consultant's errors and omissions insurance. MOTION: Director Stone moved to approve the staff recommendation. The motion was seconded by Director Naggar and voice vote reflected unanimous approval. PUBLIC HEARINGS 6 TCSD Proposed Rates and Charaes for Fiscal Year 2000-2001 RECOMMENDATION: 6.1 Adopt a resolution entitled: RESOLUTION NO. CSD 2000-11 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA COMMUNITY SERVICES DISTRICT ADOPTING RATES AND CHARGES FOR SERVICE LEVEL B - RESIDENTIAL STREET LIGHTING, SERVICE LEVEL C - SLOPE MAINTENANCE, AND SERVICE LEVEL D - RECYCLING AND REFUSE COLLECTION SERVICES FOR FISCAL YEAR 2000-2001 6.2 Adopt a resolution entitled: RESOLUTION NO. CSD 2000-12 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA COMMUNITY SERVICES DISTRICT ADOPTING RATES AND CHARGES FOR SERVICE LEVEL R - STREET AND ROAD MAINTENANCE SERVICES FOR FISCAL YEAR 2000-2001 Minutes.csd~61300 3 Community Services Director Parker reviewed the staff report (of record). In order for Director Stone to vote on recommendation 6.1, City Attorney Thorson advised that Service Level R has been removed from the associated resolution. MOTION: Director Naggar moved to approve staff recommendation 6,1. The motion was seconded by Director Stone and voice vote reflected unanimous approval. MOTION: Director Naggar moved to approve staff recommendation 6.2. The motion was seconded by Director Roberts and voice vote reflected approval with the exception of Director Stone who abstained. DIRECTOR OF COMMUNITY SERVICES REPORT No additional comments. GENERAL MANAGER'S REPORT No additional comments. BOARD OF DIRECTORS' REPORTS No comments. ADJOURNMENT At 8:28 P.M., the Temecula Community Services District meeting was formally adjourned to Tuesday, June 27, 2000, at 7:00 P.M., City Council Chambers, 43200 Business Park Drive, Temecula, California. A"FrEST: Jeff Comerchere, President Susan W. Jones, CMC City Clerk/District Secretary [SEAL] Minu~s.csd\061300 4 REDEVELOPMENT AGENCY ITEM 1 MINUTES OF A REGULAR MEETING OF THE TEMECULA REDEVELOPMENT AGENCY JUNE '13, 2000 A regular meeting of the City of Temecula Redevelopment Agency was called to order at 8:28 P.M., in the City Council Chambers, 43200 Business Park Drive, Temecula. ROLLCALL PRESENT: 5 AGENCY MEMBERS: Comerchero, Naggar, Pratt, Stone, and Chairman Robeds. ABSENT: 0 AGENCY MEMBER: None. Also present were Executive Director Nelson, City Attorney Thorson, and City Clerk Jones. PUBLIC COMMENTS No input. CONSENT CALENDAR 1 Financial Statements for the nine months ended March 31, 2000 RECOMMENDATION: 1.1 Receive and file the Financial Statements for the nine months ended March 31, 2000. MOTION: Agency Member Naggar moved to approve Consent Calendar Item No. 1. The motion was seconded by Agency Member Comerchero and voice vote reflected unanimous approval. AGENCY BUSINESS 2 Professional Services Aqreement with Fisher Merriman Sehclal Yanez, Inc. RECOMMENDATION: 2.1 Approve a Professional Services Agreement with Fisher Merriman Sehgal Yanez, Inc. for the design of the Old Town Community Theater in the amount of $75,000; 2.2 Approve a 10% contingency in the amount of $7,500. (Agency Member Stone abstained with regard to this item.) Housing Redevelopment Manager Meyer reviewed the staff report (of record), amending the staff report to accurately include $4,000 for reimbursable expenses with a total contract amount of $86,500. R:\Minutes\061300 1 Commenting on this successful private/public partnership and addressing the benefits to Old Town as well as the entire City with the construction of a theater, Mr. Harry Clark, Member of the Board of the Theater Foundation, presented to the Agency a check in the amount of $43,250. Chairman Roberrs, echoed by Agency Member Comerchero, relayed appreciation and expressed his enthusiasm with this private/public partnership, with Mr. Comerchero advising that the chosen architectural firm was chosen because of its history with theater projects. For Agency Member Naggar, it was noted that this project should be completed in two years. MOTION: Agency Member Naggar moved to approve the staff recommendation as amended, including the additional $4,000 for reimbursable expenses. The motion was seconded by Agency Member Comerchero and voice vote reflected unanimous approval. EXECUTIVE DIRECTOR'S REPORT Commending the Theater Foundation on its financial contribution, Executive Director Nelson advised that the Foundation had pledged to raise $1 million toward this project. Noting that the Capital Improvement Program will be discussed at the June 27, 2000, City Council meeting, Mr. Nelson noted that a $464,000 increase is being proposed to this project to the already designated amount of $650,000. AGENCY MEMBERS'REPORTS No comments. ADJOURNMENT At 8:39 P.M., the Temecula Redevelopment Agency meeting was formally adjourned to Tuesday, June 27, 2000, in the City Council Chambers, 43200 Business Park Drive, Temecula, California. Ron Roberts, Chairman ATI'EST: Susan W. Jones, CMC City ClerWAgency Secretary [SEAL] R:\Minutes\061300