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CITY COUNCIL AGENDA ITEM NO. 26

Meeting Date: July 13, 2004

Subject/Title: Public Hearing: Consideration of Residential Growth Management Program (RGMP) allocations for DeNova Homes located south of Sunset Road and east of Connor Way at the eastern terminus of Havenwood Avenue

Submitted by: Winston Rhodes, Senior Planner

Approved by: Mike Leana, Chief of Planning

RECOMMENDATION
The Housing/RGMP Committee and staff recommend that the City Council adopt the attached resolution granting an allocation for 480 dwelling units to DeNova Homes.

PREVIOUS ACTION
The Housing/RGMP Committee met on June 17, 2004, to consider this allocation request and formulated the above recommendation to the City Council.

BACKGROUND
There were three RGMP applications requesting a total of 1,313 units, submitted by the deadline of November 30, 2003, for consideration during the eighth cycle of the RGMP. The Vineyards at Marsh Creek received its allocation of 725 units phased over five years and Western Pacific Housing received its allocation of 108 units phased over two years earlier this year. This project by DeNova Homes is requesting an allocation of 480 dwelling units located south of Sunset Road and east of the terminus of Havenwood Avenue. The allocation requested is for a 3-year build-out period (2004-2006) as follows: 146 dwelling units in Fiscal Year 2003/04 and 201 dwelling units in Fiscal Year 2004/05 and 133 in Fiscal Year 2005/06.

This application was rated by the Housing/RGMP Committee based on the set of 10 evaluation criteria that were established as part of the RGMP. A project needs a minimum of 100 points to receive an allocation. This project was awarded 125 points, the bulk of which were due to on- and off-site amenities or infrastructure, and job generating uses related to improvements proposed for the abutting commercial area west of the project site. Staff reviewed the latest application information and provided a recommendation to the Housing/RGMP Committee, which met on June 17, 2004 (a copy of the Staff’s recommendation to the Committee, with a detailed evaluation of the project is attached). The Committee agreed with the staff’s scoring of the application with the caveat that the proposed affordable housing units need to be better dispersed within the project site. The applicant has agreed to work with staff to disperse the units more evenly on the project site during review and processing of the tentative subdivision map.

The General Plan designation for the site is Low Density Residential. The Low Density Residential designation allows 1.1 to 5 dwelling units per acre with a mid-range of 3 dwelling units per acre. This project, at 494 units (480 units allocated plus 14 affordable units that are exempt from the RGMP) has a density of 3.1 dwelling units per acre. Although this figure is above the mid-range, the Housing/RGMP Committee felt this density was justified due to the applicant’s willingness to build very low income units for sale on site, donate funds to assist Habitat for Humanity construct affordable units off-site, as well as provide land and stub utilities for an elementary school, provide land and construct a City detention basin, and provide land and construct a fire station on the project site. The applicant has also agreed to construct off-site improvements to Sand Creek Road west and east of the project site in order to complete the Sand Creek planned roadway segment between Brentwood Boulevard and Sellers Avenue. The following details the project density:

Total residential site acreage 160 acres
Allowable General Plan density 1-5 units/acre with a mid-range of 3
Allowable units at mid-range density 480 units
Units requested above mid-range 14 units (proposed as affordable units)

Subtotal 480 units

5% affordable housing requirement
(5% of 480) = 24 units

Plus affordable housing density bonus based 14 units
on compliance with the Affordable Housing
Ordinance

Total units requested 494 units

As listed above, 24 affordable units are required. The applicant has satisfied their affordable housing requirement by proposing to provide the following:

3 Units Deeded to the City (eligible for 2 for 1 credit) = 6 units
2 Units for sale to Very Low Income Households = 2 units
9 Units for sale to Low Income Households = 9 units
In lieu fees for 7 Very Low Income Housing Units = 7 units
TOTAL = 24 units

This applicant exceeds their affordable housing requirements in that they are proposing to construct 2 units affordable to very low income households on-site and are donating funds to assist with the development of affordable housing off-site units by Christian Church Homes.

The applicant has proposed an elementary school site, fire station site, and detention basin site on their property. DeNova homes has worked very cooperatively with the City to relocate the school and fire station sites to address earlier concerns. The applicant has also worked closely with staff to reconfigure the proposed park acreage adjacent to the detention basin and has agreed to dedicate the detention basin to the City in the future.

This allocation request would utilize 146 of the remaining 146 RGMP units available in Fiscal Year 2003/04, 201 of the 245 remaining RGMP units available in Fiscal Year 2004/05, and 133 of the remaining RGMP units available in Fiscal Year 2005/06. The effect of this RGMP allocation request and other approved allocation requests on the 650 annual maximum are summarized on the attached RGMP Status Report table.

FISCAL IMPACT

The project, once developed, would generate additional property tax for the City. The project will also increase demand for the urban services the City provides, which will result in ongoing service delivery costs associated with the new neighborhood. The development of a new school on the project site will result in the creation of additional jobs and the proposed extension of Sand Creek Road and utilities west of the project is expected to encourage the creation of new businesses and jobs west of the project site within the City’s Redevelopment Area.

ATTACHMENTS
1. Resolution
2. Report from Staff to the RGMP Committee
3. Table showing Status of RGMP Allocations
4. Table showing comparison of points received by approved applications
5. Project Plans (Proposed Building Elevation Information is Available for Review
at the Community Development Department.)

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD APPROVING AN ALLOCATION OF 480 DWELLING UNITS, OVER A 3 FISCAL YEAR PERIOD TO DENOVA HOMES IN ACCORDANCE WITH ITS APPLICATION SUBMITTED FOR THE RESIDENTIAL GROWTH MANAGEMENT PROGRAM (RGMP) FOR THE CYCLE ENDING NOVEMBER 30, 2003.

WHEREAS, the City Council adopted Resolution No. 2326 adopting a Residential Growth Management Program (RGMP) to provide for the review and evaluation of residential growth in the City of Brentwood on July 6, 2001, and effective July 1, 2001; and

WHEREAS, on September 11, 2001, the City Council adopted Resolution No. 2363, amending Resolution No. 2326, and on November 26, 2002, the City Council adopted Resolution No. 2752 amending Resolution No. 2326, and on May 27, 2003, the City Council adopted Resolution No. 2883 amending Resolution No. 2326, and again on September 23, 2003, the City Council adopted Resolution No. 2991 amending Resolution No. 2326 of the RGMP; and

WHEREAS, the RGMP provides for the submittal of applications for dwelling unit allocations in three separate cycles during the fiscal year, July 30, November 30 and March 30; and

WHEREAS, an application was submitted by DeNova Homes for 494 dwelling units (480 allocations and 14 exempt affordable units) on November 26, 2003; and

WHEREAS, Staff prepared a report to the RGMP Committee including the recommended point total and corresponding rationale for awarding said points based in part on information submitted by the applicant in support of its application; and

WHEREAS, the RGMP Committee conducted a noticed public meeting on June 17, 2004, to consider Staff’s recommendation after reviewing the report from Staff and all available information related to the application; and

WHEREAS, the RGMP Committee recommended to the City Council that the application receive a total of 125 points; and

WHEREAS, a minimum of 100 points is needed to receive an allocation and the applicant was notified of the point total recommended by the RGMP Committee; and

WHEREAS, on July 13, 2004, the City Council held a public hearing and reviewed all available information, including the application, correspondence from the applicant, Staff’s report to the RGMP Committee, the report prepared by Staff to the Council on the recommendation of the RGMP Committee, and public testimony; and

WHEREAS, consideration of this application is determined to be covered by the general rule that the California Environmental Quality Act (CEQA) applies only to projects which have the potential for causing a significant effect on the environment. In this case, where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA (CEQA Guidelines Section 15061(b)(3)), in that any granting of an allocation for dwelling units will need to be followed by an appropriate Tentative Subdivision Map application to receive an actual entitlement, including the appropriate level of environmental review in compliance with CEQA.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Brentwood hereby finds and determines as follows:

Section 1. The foregoing recitals and Staff report statements are found and determined to be true and correct.

Section 2. The City Council finds that this action is exempt from the requirements of the California Environmental Quality Act, pursuant to Section 15061(b)(3) of the CEQA Guidelines, and directs Staff to file the Notice of Exemption with the County Clerk.

Section 3. The City Council finds that DeNova Homes has achieved 125 total points or 25 points over the minimum required total of 100 points and grants the requested allocation of 480 dwelling units in accordance with its application and the following proposed on-site and off-site improvements:

1. Reservation of land and extension of wet utilities necessary to construct a 12-acre elementary school.

2. Reservation of land and construction of a fire station.

3. Reservation of land and construction of a City detention basin.

4. Construction of Sand Creek Road frontage improvements to City of Brentwood Arterial Roadway Standards including oversizing and extending all wet utilities, extending motor vehicle lanes, bike lanes, curb and gutter, sidewalk, parkway landscaping and irrigation where appropriate from Brentwood Boulevard to the project’s western boundary.

5. Construction of Sand Creek Road frontage improvements to City of Brentwood Arterial Roadway including oversizing and extending all wet utilities, extending motor vehicle lanes, bike lanes, sidewalk, parkway landscaping and irrigation where appropriate from the project’s eastern boundary to Sellers Avenue.

6. Modification of the existing traffic signal at the intersection of Brentwood Boulevard and Sand Creek Road.

7. Extension of all necessary utilities to service the planned mixed use Business Park site west of the project.

8. Installation of trail and landscaping improvements north of the project site within the East Bay Municipal Utility District right-of way area.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at their regular meeting of July 13, 2004, by the following vote:

COMMUNITY DEVELOPMENT DEPARTMENT
MEMORANDUM

DATE: June 17, 2004

TO: Residential Growth Management Program (RGMP) Committee
Brian Swisher, Mayor
Bill Hill, City Councilman
Ray Shipley, Planning Commission Chairman
Chris Becnel, Planning Commission Vice Chairman

FROM: Mike Leana, Chief of Planning
Winston Rhodes, Senior Planner

SUBJECT: Evaluation of Denova Homes Inc. - Barrington RGMP Application

Background
This represents the eighth cycle for the RGMP since it became effective on July 1, 2001. The DeNova Homes Barrington project is one of three allocation applications submitted for this cycle. Denova Homes is requesting an allocation of 480 lots (plus 14 affordable housing units which are exempt from the RGMP process). The project is site situated on the south side of Sunset Road and east of the Havenwood Townhouse Development.

The proposed project is located on the Stolich property, which was annexed into the City in November 2000. The property has a Low Density Residential General Plan designation with a mid-range density of 3 du/ac. and is zoned PD-46 as a “shell” planned development. The mid-range density for this project site is 480 dwelling units. The proposed 494 unit project is 14 units or 3% over mid-range. However, the number of proposed units over the mid-range density are all affordable housing units. The applicant is requesting a multi-year 480 allocation (affordable units are exempt from the allocation process) with a 3-year anticipated build-out period (2004–2006). The 3-year allocation request is as follows:

Fiscal Year Allocation Requested
2003/04……………………………… 146
2004/05 …………………………….. 201
2005/06 ……………………………… 133
===
480

This allocation request would not exceed the annual 650 allocation cap for any of the three affected fiscal years (see the attached RGMP status report).

The project was discussed by the RGMP Committee on February 19. Concerns were raised about the contribution of affordable housing opportunities provided in conjunction with the allocation request as well as the timing of infrastructure improvements.

Analysis
Staff has reviewed the revised DeNova Homes application with respect to the evaluation criteria that were adopted as part of the RGMP and the most recent Council direction on the recently adopted Affordable Housing Ordinance. The application received a certain number of points for each criterion and the total is shown at the end of the narrative below. Staff's intent in reviewing the application was to maintain consistency with the review of previous applications relative to the following criteria while recognizing the evolving policy direction on affordable housing.

1. Does the project provide housing for a range of incomes and lifecycles? Does it include a minimum of 10% of housing affordable to low or very low income households through inclusionary housing, and/or provide other assistance for affordable housing for low or very low income: families, the disabled, seniors, credentialed school teachers, East Diablo Fire Protection District firefighters, City of Brentwood public employees, and/or agricultural farm workers? (50 points possible)

The applicant has proposed affordable housing units on-site for sale and for dedication to the City. Affordable units proposed on site will include at least two different product types and would be distributed throughout the site within walking distance to the proposed school and fire station sites. In addition, the applicant is proposing to provide a $10,000 contribution to Habitat for Humanity to facilitate development of 4 proposed off-site units immediately north of the ECCID main canal along Fairview Avenue. A summary of the project’s contribution to the availability of affordable housing opportunities is as follows:

3 Units Dedicated to the City (eligible for 2 for 1 credit) ………… 6
2 Units for sale to Very Low Income Households…...…………….2
9 Units for sale to Low Income Households ……………………….9
In lieu fees for 7 Very Low Income Housing Units ……………….. 7
====
24

It should be noted that the RGMP was adopted prior to the adoption of the City’s Affordable Housing Ordinance. The Affordable Housing Ordinance is currently under review with City Council direction to apply 50% of its requirements until amendments are adopted later this year. Consequently, staff has reviewed this allocation request to determine if a good faith effort has been made to provide affordable housing opportunities and exceed the flexible City affordable housing requirements currently in effect. The applicant is proposing that the equivalent of 5% (24 of 480 units) of the project be affordable housing consistent with the latest Council direction for developments under review.

The applicant’s proposal includes the construction of 2 very low income single-family units which is not currently required and the provision of financial assistance for the development of off-site affordable housing by Habitat for Humanity. The proposed units on site include a mix of housing types and are somewhat geographically disbursed. The proposed units include the direct construction of very low income housing for sale as well as low income housing for sale. In addition, the proposed project includes affordable units dedicated to the City in “move in” condition (i.e., with all major appliances and full landscaping) for permanent affordable housing opportunities within the community. Finally, the proposed project includes funds to assist with the development of off-site affordable housing opportunities through a $10,000 grant to Habitat for Humanity and by payment of in lieu fees.

Staff recommends 15 points for this category. Staff is receptive to awarding more points in this category if additional affordable dwelling units are provided on-site, and if a larger monetary contribution or additional assistance is provided to facilitate off-site affordable housing construction by Habitat for Humanity or other non-profit home builders within the City.

2. Does the project provide on-site and/or off-site amenities and or infrastructure (other than standard requirements and improvements) through a Development Agreement, in addition to required facilities, which are desirable for the City as a whole? (30 points possible)

The applicant is proposing to extend two arterial roadways Garin Parkway (on-site) from the southern boundary of the site to Sunset Road and extend Sand Creek Road (on and off-site) from Brentwood Boulevard to Sellers Avenue. The applicant proposes to install and oversize all wet utilities within the Sand Creek Road extension between Brentwood Boulevard and the western edge of the site and install the wet utilities and half width of road improvements for Sand Creek Road east of the project site.

The applicant has set aside 12.0 acres of land for a future elementary school and the Brentwood Union Elementary School District has confirmed a desire for a school site on the property. The District has reviewed the proposed school site size and configuration and determined that it is acceptable. The applicant is proposing to stub all utilities necessary to serve the future school site and work closely with the City and School District on traffic control measures for the streets that would serve the future school.

The applicant has set-aside approximately 1.1 acres for a future fire station site along Sunset Road and proposed to stub all utilities to serve the station. The applicant has also agreed to build the fire station if reimbursed by the City. The East Contra Costa Fire Protection District has reviewed the proposed location and determined that the location and size of the proposed fire station site along north side of Sand Creek Road is acceptable. Both a future school and fire station site are identified in the General Plan for this area to meet future community service needs.

The project requires 7.7 acres of parks minimum and the General Plan identifies two future park locations on the project site. The applicant is proposing 9.4 acres of eligible park acreage. In addition, the applicant has agreed to grade the proposed detention basin to allow it to be used for seasonal athletic play fields and dedicate it to the City. The project also includes an extensive trail network linking several of the neighborhoods to the largest of three proposed parks.

Staff recommends 30 points be awarded for this criterion since the project includes extension of two important arterial roadways, helps establish school and fire station facilities in northeast Brentwood, and exceeds minimum requirements for park acreage and recreational amenities.

3. Does the project propose to rehabilitate existing units in the City and make them available for very low or low-income households? (20 points possible)

The applicant did not respond to this criterion so Staff recommends that 0 points be awarded. Staff is receptive to providing points in this category if the applicant is willing to donate funds for the rehabilitation of homes within northeast Brentwood.

4. Does the project incorporate energy efficient design, layout, landscaping, construction and materials of an active or passive nature, which exceed those otherwise required by Title 24? (20 points possible)

The applicant has stated that a significant percentage of the homes will be solar-oriented. A preliminary review of the latest proposed lot pattern by staff has confirmed that at least 38 percent of the proposed lots are located on East-West oriented streets and therefore could have a North-South orientation. The project is proposed to include high reflectivity (light-colored) pavement. The developer is proposing the narrowest street widths allowed under the City’s roadway standards. All of the homes are proposed to meet PG&E’s “Comfort Home” Program criteria that exceed Title 24 energy conservation standards. The applicant is proposing to utilize “cool roofs” energy star rated exterior lighting.

Staff has reviewed the proposed energy savings from these features and recommends 15 points be given for this criterion. Staff is receptive to providing more points if additional energy savings features are proposed for the project.

5. Does the project propose to develop job generating land uses, or otherwise assist economic development, in conjunction with the development of dwelling units? (40 points possible)

The project includes a school site and fire station site which will provide jobs on site when constructed. In addition, the extension of Sand Creek Road through a planned mixed use Business Park immediately adjacent to the site will encourage future job generating development and assist economic development.

Staff therefore recommends that 20 points be awarded for this criterion. Staff is receptive to providing more points if the applicant contributes funds for actual construction of the fire station on the project site.

6. Is the project proposed for a site that is considered to be in-fill? That is, is the project site surrounded on at least two sides by either already developed or developing projects, or sites already approved for subdivision or development, or sites which have a housing allocation? (20 points possible)

The proposed site is bordered on three sides by existing or approved development. Consequently, the project site meets the criterion for a site to be considered an in-fill. Staff recommends that 15 points be given for this criterion.

7. Does the project preserve prime soils for agricultural use on sites within the City, or otherwise provide benefits for agricultural enterprise? (15 points possible)

The proposed project would result in a loss of approximately 160 acres of productive agricultural land within the City. The applicant did not respond to this criterion and Staff recommends that 0 points be awarded.

8. Does the project demonstrate high quality, innovative design and product type, demonstrate maximum provisions for pedestrian and bicycle use, and reflect progressive planning principles such as Smart Growth, Neotraditional design, and/or the Ahwanee Principles; and has the developer exhibited a high level of past performance in the quality of their development projects? (20 points possible)

The applicant has indicated that the proposed homes will include 7 different products with 26 different floor plans utilizing a variety of different architectural styles. The homes include a mix of typical single-family design features found in homes throughout Brentwood. The applicant is proposing a 7.3-acre neighborhood park located within the northeast corner of the project, two 1-acre pocket parks and a pedestrian/bicycle trail along the eastern, northern, and portion of the western edges of the project site. The applicant has agreed to add 2-3 bus turnouts in locations to be determined following consultation with the Tri-Delta Transit District. The project is consistent with Smart Growth and Ahwanee principles because it is an in-fill development, includes features that encourage pedestrian and bicycle use, and contains open space that is located to encourage the attention and presence of people throughout the day. It should also be noted that DeNova Homes has exhibited a high level of past performance in the quality of homes built in the City.

Staff recommends that 15 points be awarded for this criterion, based on the proposed location, layout, and features of the subdivision.

9. Is the project proposed for a location which has been identified by the City as being particularly prioritized for development or redevelopment, such as the Downtown, Northeast Brentwood, or along the Highway 4 Bypass? (15 points possible)

The proposed project is located in Northeast Brentwood. The project would help extend infrastructure to this portion of the City and help implement the City’s Circulation Plan and complete Storm Drain Line A by making improvements to Garin Parkway and Sand Creek Road. These improvements will help address existing drainage and circulation concerns as well as facilitate development within the City’s redevelopment area. Based on these project features, Staff recommends that 15 points be awarded for this criterion.

10. Is the project a continuing project - a second or later phase of a multi-phase project where construction has begun on at least one previous phase and public improvements have been started? (10 points possible)

The proposed project is not a continuing project and, therefore, Staff recommends that 0 points be awarded for this criterion.
Recommendation
Staff recommends that the RGMP Committee recommend awarding 125 points for this application by DeNova Homes. By awarding a minimum of 100 points for this application, the Committee would be recommending that the City Council approve the allocation of as many as 146 of the 146 remaining RGMP units available in Fiscal Year 2003/04, 201 of the 245 remaining RGMP units available in Fiscal Year 2004/05, and 133 of the 440 remaining RGMP units available in Fiscal Year 2005/06 unless alternate phasing is arranged. In the table below is a summary of the RGMP score for DeNova’s previous and current RGMP request for the Barrington project. Staff and DeNova Homes have worked cooperatively in redesigning the Barrington project to help raise the project’s RGMP allocation score, include more amenities for the City, and get a better overall product.

Allocation Request Scoring Summary

Rating Criterion & Maximum Points Available DeNova Homes – Barrington
February 19, 2004 Proposal June 17, 2004 Proposal
1. Affordable / Special Housing
Needs – 50 0 15
2. Amenities and Infrastructure – 30 25 30
3. Housing Rehabilitation – 20 0 0
4. Energy Efficiency – 20 15 15
5. Job Generation – 40 20 20
6. Infill Development – 20 15 15
7. Agricultural Enterprise – 15 0 0
8. Design Quality – 20 17 15
9. Development Priority – 15 15 15
10. Ongoing Project –10 0 0
Possible Points: 240 TOTAL 107 Points 125 Points
Attachments

Status of RGMP Allocated Units
Past RGMP Project Point Summaries
 

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