Honorable Mayor and Members of the Hermosa Beach City Council
Regular Meeting of November 28, 2023
Title
ADOPTION OF RESOLUTION EXTENDING CITY’S DEADLINE TO
ESTABLISH AN ONLINE PERMITTING SYSTEM FOR POST-ENTITLEMENT PERMIT TO JANUARY 2026 AND FINDING THE SAME EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
(City Attorney Patrick Donegan)
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Recommended Action:
Recommendation
Staff recommends City Council adopt a resolution (Attachment 1) extending the City’s deadline to establish its online permitting system under AB 2234 for post-entitlement phase permits.
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Executive Summary:
Recent State legislation amended the Permit Streamlining Act as it pertains to the City’s processing of post-entitlement phase permits (e.g., building permits, permits for off-site improvements, demolition permits, etc.). Among other things, this State law requires the implementation of an online permitting system for post-entitlement phase permits by January 1, 2024, unless the City adopts a resolution providing for an extension. Staff recommends City Council adopt a resolution (Attachment 1) extending the City’s deadline to January 1, 2026 to allow for the necessary permitting software modifications.
Background:
California Assembly Bill 2234 (“AB 2234”) took effect on January 1, 2023. AB 2234 added sections 65913.3 and 65913.3.5 to the Government Code and, most notably, extends elements similar to those of the Permit Streamlining Act to a local agency’s review of ministerial “post-entitlement phase permit” applications for housing development project.
Under AB 2234, post-entitlement phase permits include all nondiscretionary permits and reviews, filed after the entitlement process has been completed, that are required or issued by the local agency to begin construction of a development that will be at least two-thirds residential. Examples of post-entitlement phase permits include but are not limited to building permits, permits of minor or standard off-site improvements, permits for demolition, or permits for minor or standard excavation and grading.
AB 2234 imposes numerous requirements on a local agency’s review and processing of a post-entitlement phase permit application, including posting application checklists and examples online, time limits to determine whether an application is complete, time limits to approve or deny an application, providing an applicant with the right to appeal the local agency’s decision, and implementing an online permitting system. The focus of this report is the online permitting system requirement.
AB 2234 requires local agencies located in counties with a population of 250,000 or greater to implement an online permitting system to allow applicants to apply for, check the status of, complete, and retrieve post-entitlement phase permits. Local agencies in counties with a population of less than 250,000 are exempt from this online permitting system requirement.
For local agencies in counties with a population or 250,000 or greater, the deadline to comply with AB 2234’s online permitting system requirement is January 1, 2024, if the local agency has a population of 75,000 or greater or is located in a county with a population of 1.1 million or greater, or January 1, 2028 for all other local agencies. The City of Hermosa Beach is subject to the January 1, 2024 deadline because Los Angeles county has a population of 1.1 million or greater.
Discussion:
AB 2234 authorizes any local agency subject to the January 1, 2024 deadline to give itself an extension of up to two years (i.e., to January 1, 2026) if its legislative body does both of the following before January 1, 2024:
• Makes a written finding that adopting an online permitting system by January 1, 2024, would require substantial increases in permitting fees; and
• Initiated a procurement process for the purpose of complying with the online permitting system requirement.
The City currently has an online permitting system (Accela) with the capability of being configured to accommodate the requirements of AB 2234, but must undergo upgrades to meet the requirements. Implementing changes to the current online permitting system by the January 1, 2024 deadline would present several financial and logistical burdens for the City that, in turn, would require a substantial increase in permitting fees due to the City’s need to recover costs associated with the development review process.
In order to meet the current deadline, the City would need to procure software and technology configuration services from a private vendor, which would lead to additional costs to the City and necessitate increase in the costs of the fees to the users to cover the additional software costs. Similarly, if the City were to pursue completing associated tasks in-house, it would divert already strained staff resources and lead to an increase in the fees charged to users.
Staff recommends City Council approve the proposed resolution (Attachment 1) to make the requisite findings and extend the City’s deadline to comply with AB 2234’s online permitting system requirement to January 1, 2026. As required by AB 2234, the resolution also includes direction to staff to initiate any procurement process necessary to comply with this State requirement. This process would be conducted in accordance with State law and the City’s applicable procurement policies.
General Plan Consistency:
This report and associated recommendation have been evaluated for their consistency with the City’s General Plan. Relevant Policies are listed below:
Governance Element
Goal 1. A high degree of transparency and integrity in the decision-making process.
Policies:
• 1.3 Priority-based budgeting. Utilize priority-based budgeting to ensure funding allocations are consistent with priorities set by the community and City Council.
• 1.4 Consensus oriented. Strive to utilize a consensus-oriented decision-making process.
Goal 5. Small beach town character is reflected throughout Hermosa Beach.
Policy:
• 5.2 Development decision. Strive to conduct the development review process in a consistent and predictable manner.
Fiscal Impact:
If the attached resolution is not adopted, the City would face additional costs related to the implementation of this online permitting system.
Attachment:
Draft Resolution
Respectfully Submitted by: Patrick Donegan, City Attorney
Concur: Myra Maravilla, City Clerk
Noted for Fiscal Schedule: Viki Copeland, Finance Director
Legal Review: Patrick Donegan, City Attorney
Approved: Suja Lowenthal, City Manager