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LAND USE PLANNING AND INFRASTRUCTURE
A
Briefing Paper for the Conference
Committee June
12, 2002
The AB 857 (Wiggins)/SB 741 (Sher) Conference Committee was established to update California's land use and infrastructure policies and approaches. This report describes the problems to be considered by the conference committee and several approaches to address them. The charge of the conference committee is threefold. First, at the June 12th hearing, the committee will review and receive public input on the four approaches to addressing California's land use and infrastructure polices and practices, and determine a preferred approach. Second, staff will return with options within that approach for the committee to consider and refine in one or more follow-up meetings. Lastly, the conference committee will consider signing a conference report to include the finalized details, to go back to the floors for concurrence. There is widespread agreement that California's populace will continue to grow significantly over the next two decades. The most recent projection by the Department of Finance is that state population will grow by 11.3 million people, from 34.5 million in 2000 to 45.8 million in 2020. 1 There is also increasing agreement among a diverse array of groups statewide that serious growth-related problems face California, including:
State leadership in addressing California's growth challenges is warranted by widespread public concern over the state's growth and its potential for worsening California's existing problems. In the most recent survey conducted by the Public Policy Institute of California, Central Valley residents ranked population growth and sprawl as the most serious issue facing the Valley. 13 In November 2001, a statewide poll by PPIC also showed strong concern about growth. 14 Without state action, "ballot box" planning at the local level and continued public earmarking of state funds, may limit California's ability to maintain and create quality communities statewide. III. A MORE PROMISING SCENARIO FOR CALIFORNIA The state could encourage a more promising scenario for California through the following policies:.
This section discusses four basic approaches, on the spectrum from less to more policy direction, that the conference committee may wish to consider in addressing California's land use policies, along with some typical arguments in support of and against each approach. The approaches could be evaluated in terms of achieving most efficiently and effectively the policy improvements described above.
This approach would require the state to do nothing significant beyond existing policies. ARGUMENTS IN FAVOR The State doesn't have the money to update land use policies. The state's weak fiscal condition makes it difficult to finance an update the state's land use policies, and makes it harder for local governments to update their own plans. Local governments and residents often prefer the status quo. Many local governments and residents prefer strong local control, and seek to keep the current system unchanged. Local governments have many tools to make changes in their communities and development patterns if they so desire. Local jurisdictions through the planning and zoning process already have significant power to shape their community's growth patterns.
The status quo will worsen existing problems. Declining communities, social and economic inequity, aging and inadequate infrastructure, long commute times, high housing prices, farmland loss and air and water pollution will worsen if the status quo is maintained. The market and existing land use policies are not adequately meeting consumer needs and preferences. Many existing land use policies have not responded to a strong desire by working families to spend less time commuting and to live in housing that they can afford that is closer to work. Existing practices primarily favor larger single-family homes that are often separated from jobs and services, and other housing choices are limited. Public dissatisfaction is leading to ballot box planning. Public frustration with existing development patterns has led to a patchwork of local initiatives to control growth and permanently earmark public funds. This trend will continue unless the state shows some leadership in correcting some of the problems.
ARGUMENTS IN FAVOR Infill currently is not attractive to developers because there are too many hurdles. Aging infrastructure, brownfields, cleanup liabilities, and inadequate school facilities discourage developers from pursuing infill development, even though there is developer interest. Deregulation is necessary to entice developers back into infill areas. Neighborhood opposition presents challenges to developers. Because infill development is surrounded by other uses, neighborhood concerns more easily develop and can result in more hearings and litigation. Construction defect litigation has slowed the condominium market. The growth in homeowner association lawsuits has led to unaffordable construction defect insurance, inhibiting compact condominium and townhouse development.
Current law already includes time limits and streamlining for various actions. California's Permit Streamlining Act sets time limits for acting on development projects, includes streamlined procedures and exemptions in CEQA for various types of housing, certain infill and mixed-use projects, and provides incentives such as density bonuses when affordable units are included in a project. Stifling public comment will create public resentment and backlash. Allowing development to proceed with little review will fuel public resentment and encourage more "ballot box" planning. Current procedures like CEQA review help ensure project impacts are mitigated to resolve neighborhood concerns. Condo developers contributed to the growth in lawsuits. Shoddy construction by some developers led to growth in construction-defect lawsuits. An improved dispute resolution process was approved last year by the Legislature. 3. LINKAGE/COORDINATION APPROACH The linkage/coordination approach focuses on updating existing state and local land use plans, policies, and spending consistent with identified state goals. Examples include: establishing goals to guide growth statewide; increasing state and local coordination and planning capacity to achieve those goals; revising state infrastructure spending and other programs to support development and land conservation activities to meet those goals; and developing conflict resolution mechanisms to resolve state and local conflicts over planning and development.
The state should provide consistent guidance and direction. The state has no common land use goals to bring consistency to state agency policies that affect California's development and land protection efforts. While some state agencies help protect farmland and open space, other agencies are facilitating loss of these lands through, for example, the approval of school sites in agricultural areas, or the approval of freeway interchanges in open space areas. The state should insure its policies and directives are consistent to achieve multiple, identified goals. Finite state resources should be prioritized for maximum cost-effectiveness. The state's resources are limited. Proper fiscal management suggests that the state should prioritize how it uses its infrastructure dollars so that the benefits of growth are enhanced and important lands protected, while social costs are minimized. Local control would be protected if the state develops goals and attaches priorities to infrastructure spending. Local governments would still have the ultimate say in deciding where to grow, and would have the option of declining to use state funding and using local funds if they did not wish to meet state criteria for infrastructure funds.
Linking policies to funding may be vulnerable to the priorities of the administration. An administration that is not supportive of consistency between policy and funding may ignore the state land use goals and objectives when distributing infrastructure dollars. Implementing state goals can create complexity. Linking state land use goals and policies may be complex in practice. Local control could be reduced if local governments desire state funds. With limited options for generating new local funding, local governments may feel they have no other choice but to conform with state policies if they want state funds. 4. STATE-CENTERED APPROACH The state-centered approach focuses on a more directive role for state government in addressing growth and planning statewide. Examples of such an approach include: establishing a state planning agency, requiring local jurisdictions to establish urban growth boundaries, establishing state requirements for new development within those boundaries, and establishing a state appeals process by which to challenge local land use decisions.
Urban growth boundaries are clearly understandable. Complexity is avoided and certainty is established when everyone understands that development cannot occur outside a clearly defined area. Local governments would be better equipped to balance competing needs. Protecting important resource lands and open space often means increasing density elsewhere. A strong state system would strengthen the ability of local governments to approve necessary development even in the face of neighborhood opposition. This opposition would likely decrease because the public can more clearly see beneficial tradeoffs. Statewide urban growth boundaries would reduce "leapfrog" development. Some local governments currently have urban growth boundaries, but there may be pressure for growth in a nearby community. Uniform, statewide boundaries would promote balanced development between communities, rather than "driving" lower density development to a nearby community. ARGUMENTS AGAINST Local control would be diminished. A state-centered approach would give the state more control over local development decisions. Urban growth boundaries could constrain development. Drawing urban growth boundaries could worsen California's housing shortage if communities do not provide for an adequate supply of affordable housing within the boundaries. Some property owners would not receive maximum return on investment. If a property is outside the urban growth boundary, that property would be worth less than its potential value if urban growth boundary did not exist.
California has adopted over the years numerous planning-related requirements and policies to guide California's growth and development. California used to be, but is no longer, a leader in state, regional and local planning law. Nevertheless, any of the previously discussed approaches could benefit from building on the state's current planning provisions. Below is a brief overview of current law: General Plans. State law requires every city and county to adopt a comprehensive general plan with seven mandatory elements: land use, circulation, housing, conservation, open space, noise, and safety. The general plan is a comprehensive, long-term plan for development of a city or county. Most local governments select 15 to 20 years as the long-term horizon for a general plan. Local officials may also adopt optional elements for topics that are important to their communities. For example, 14 counties and 23 cities have adopted optional energy elements as part of their local general plans. Unfortunately, state law at times hinders improved planning efforts. Planning and Zoning Law sets procedural requirements for public notices, hearings, amendments, and appeals. The general plan is supposed to be the "constitution for all future developments." Yet, a mandatory general plan element may be amended up to four times each year, and each amendment may include more than one change in the general plan, meaning there is not necessarily consistency in planning direction over time. Unlike other states, California also provides no direct financial help and little technical assistance to local planning departments, hampering their ability to update general plans on a regular basis. State law also contains inconsistent and duplicative planning requirements in, for example, procedures for cities and counties to refer plans to neighboring entities, and for local capital facilities planning. At various times, the state has also suspended various mandates, such as certain housing element requirements during the 1990s, making it confusing and difficult for local governments to comply with the state law in a consistent fashion. Another hindrance is that state public works projects and permit decisions do not have to follow local general plans, thereby eroding the ability for local governments to implement their plans. State departments can differ from local land use policies when siting state facilities like universities and highways. State school siting requirements also restrict local governments' ability to plan for a community's school needs, and to mitigate a development project's impact on school facilities. Zoning and building requirements. Zoning ordinances regulate the use of buildings, structures and land between different uses, including the location, height, lot sizes, and bulk. Building codes deal with the safety and structure of buildings and regulate, for example, construction details, use of materials, and electrical, plumbing, and heating. These building codes are based on the type of occupancy. In addition to the exception for state facilities, state law allows school districts and special districts to override county and city general plans and zoning to carry out their own public works projects, in some cases creating conflicts between local governments over preferred land uses. California Environmental Quality Act (CEQA). CEQA provides a process for evaluating the environmental effects of a project, and includes statutory exemptions, as well as categorical exemptions in the CEQA guidelines. If a project is not exempt from CEQA, an initial study is prepared to determine whether a project may have a significant effect on the environment. If the initial study shows that there would not be a significant effect on the environment, the lead agency must prepare a negative declaration. If the initial study shows that the project may have a significant effect on the environment, the lead agency must prepare an environmental impact report (EIR). Generally, an EIR must accurately describe the proposed project, identify and analyze each significant environmental impact expected to result from the proposed project, identify mitigation measures to reduce those impacts to the extent feasible, and evaluate a range of reasonable alternatives to the proposed project. Prior to approving any project that has received environmental review, an agency must make certain findings. If mitigation measures are required or incorporated into a project, the agency must adopt a reporting or monitoring program to ensure compliance with those measures. An independent survey of cities and counties found that 94% of their projects resulted in negative declarations and only 6% needed EIRs. Although environmental lawsuits are always controversial, CEQA litigation is extremely rare; cities and counties reported just one suit for every 354 projects. 15 Subdivision Map Act. The Subdivision Map Act provides for the regulation and control of the design and improvement of subdivisions. The act has several purposes, including creation of accurate maps showing boundaries; setting procedures for the contents and processing of tentative, final, and parcel maps, along with uniform mapping standards important for parcel conveyance and title insurance needs; orderly development through the regulation and control of subdivision design and improvement; coordination of subdivisions with general plans and applicable standards for development type and density, public health, and other environmental concerns; and dedication and reservation of areas for public purposes, such as streets and easements for various infrastructure. The Subdivision Map Act has been amended periodically to lengthen the life of a tentative map, enabling some projects to avoid compliance with conditions relating to, for example, roads, sidewalks, parks, and other infrastructure. Some local governments are also hindered in their efforts to develop orderly plans because of antiquated subdivisions - lots allegedly created from land holdings before the first subdivision map act in 1893 or the first map act providing regulatory authority to local governments regarding maps in 1929. If found to be valid, these subdivisions frequently do not comply with the current local requirements relating to size, location, and conditions that would otherwise apply. Vertical Consistency. Zoning, subdivision approvals, use permits, and public works projects must follow the goals, policies, and standards in general plans. This vertical consistency requirement means that a local government must zone land for apartments to meet its general plan's goal for affordable housing, and must deny a builder's residential rezoning application if their general plan reserves that land for long-term productive agricultural use. Regional planning programs. The state has land use authority in four regions. The San Francisco Bay Conservation and Development Commission controls land use decisions affecting the Bay and its shoreline. The bi-state Tahoe Regional Planning Agency sets land use policy within the Tahoe basin. The California Coastal Commission manages land use in the coastal region. Local land use decisions in the Sacramento-San Joaquin Delta must conform to the plan adopted by the Delta Protection Commission. Current law also establishes local agency formation commissions (LAFCOs) in each county, and provides for air pollution control districts, regional water quality control boards, regional transportation planning agencies, and other regional entities. A Council of Governments (COG) may also be formed through a joint-powers agreement. State program and infrastructure planning. Instead of adopting a statewide comprehensive plan analogous to a local general plan, state officials prepare about 40 functional plans to guide departments' programs, decisions, and projects. The State Department of Water Resources, for example, prepares the California Water Plan. Comprehensive local plans (i.e., city and county general plans) force local elected officials to confront trade-offs between competing policy goals. Functional state plans (e.g., the California Transportation Plan) allow a state department to pursue its own ends without having to be consistent with other agencies' programs. Coordination and direction for the state's functional plans is supposed to come from the Governor's Office of Planning and Research (OPR). State law directs OPR to coordinate state departments' functional plans. OPR is supposed to direct state departments' policies by issuing the Environmental Goals and Policy Report every four years. OPR's last report, An Urban Strategy for California, came out in 1978 and is still in effect, but routinely ignored. The Governor must also establish and annually update a five-year plan for funding infrastructure, to be submitted with the annual state budget. According to the Legislative Analyst, however, "The state lacks a methodology for setting priorities in the context of statewide goals and objectives." The LAO further notes that "the state has no method of ranking the various capitol outlay proposals. Absent such a priority ranking, the Legislature cannot assess infrastructure demands across programs and evaluate the tradeoffs of funding different proposals in order to ensure that the state will get the 'biggest bang for the buck. '" 16 Funding for planning and services. Cities and counties pay for planning and services out of local revenues. As revenue sources have eroded for local governments, it has become increasingly difficult for many local governments to plan well for new development, provide adequate community services, and protect important land resources. Developer fees may not cover the full costs of a functioning planning department. Also, other sources of local government revenue have been diminished, including property tax revenues shifted to the educational revenue augmentation fund (ERAF), reduced vehicle license fees that are currently backfilled to local governments but are not constitutionally protected, cigarette tax subventions, sales tax exemptions, and liquor license fees. Proposition 218 has made it more difficult to finance needed services and infrastructure through assessments. Available funds have also been limited for farmland and open space protection. Recent changes. In the last few years, California has begun on a limited basis to address some growth-related issues through legislation, regulation, and executive order. Examples of these measures include the following:
VI. CONCLUSION The task
of the Conference Committee is to choose an approach to begin to address
California's growth and planning challenges, and to direct staff to return
with options for implementing that approach. Twenty four states that have enacted some form of growth-related policies, or the one-third of the states that have some form of oversight role regarding regional land use planning and decisions. Despite different challenges and political traditions, these states have used tools that the conference committee may wish to explore, such as revised general plan and housing plan requirements, more targeted public investment priorities, and incentives to builders, consumers, and local governments to develop in existing urbanized areas and protect urban and rural green spaces. Examples of efforts in other states include: Investment in existing developed areas
For more information the Smart Growth Caucus, call Dan Flynn, Office of Assemblymember Patricia Wiggins, 916/319-2007. 1 5 13
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