HomeMy WebLinkAboutStaff Report 14507
City of Palo Alto (ID # 14507)
City Council Staff Report
Report Type: Action Items Meeting Date: 6/21/2022
City of Palo Alto Page 1
Summary Title: Hazardous Materials (Tier 2) Emergency Ordinance
Title: Urgency Ordinance of the Council of the City of Palo Alto Imposing a
Temporary Moratorium on the Approval of Development Entitlements or
Building Permits that Entail the Storage, Use, or Handling of Hazardous
Materials Within the General Manufacturing (GM) District, Research, Office
and Limited Manufacturing (ROLM) District, and Research Park (RP) District
From: City Manager
Lead Department: Planning and Development Services
Recommendation:
Staff recommends that Council adopt an urgency ordinance imposing a temporary moratorium
on the approval of development entitlements or building permits that entail the storage, use,
or handling of hazardous materials within the General Manufacturing (GM) District, Research,
Office and Limited Manufacturing (ROLM) District, and Research Park (RP) District.
Background:
On March 21, 2022, as part of the City’s Housing Element update, the City Council reviewed and
endorsed a recommended list of housing opportunity sites identified by staff, the housing
element working group and planning and transportation commission. This list of housing sites
are areas where the City anticipates planning for over 6,600 housing units over the next eight
year housing cycle and includes locations within the Stanford Research Park and other industrial
areas of the City.
Through a regular departmental coordination meeting between the City’s planning and building
programs, management staff connected the Council’s housing policy interests to an increase in
tenant improvement applications to establish lab space in various locations in the City. These
facilities typically contain hazardous materials that are regulated locally and by the State. The
zoning code prohibits certain quantities of hazardous materials from being located within 300
feet of a residentially zoned property; a conditional use permit is required to handle, store, or
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use hazardous materials if there is a residential zone between 300 and 600 feet.
Staff has since obtained more information about the pending applications and reviewed the
City’s regulatory framework and procedures for processing applications with hazardous
materials. Based on this review, staff recommends the City pause certain development activity
that uses hazardous materials in certain zoning districts while the City considers the policy
implications of these land uses and to clarify municipal code regulations.
Discussion:
What started as an observation of increased lab space applications in the City and a policy
exploration as to how this may impact future housing production in the City revealed other
concerns related to the City’s standards regulating hazardous materials.
To give time to sort through these policy and regulatory issues, staff recommends the City
Council adopt an urgency ordinance imposing a temporary moratorium on the issuance of a
building permit or planning entitlement that involves the handling, storage or use of Tier 2
hazardous materials in the Stanford Research Park and two other industrial zoning districts,
General Manufacturing (GM) and Research, Office and Limited Manufacturing (ROLM).1 These
districts permit the type of land uses that would be subject to the City’s hazardous materials
regulations, but are also areas where the City Council has expressed an interest in creating
future housing opportunities.
An interim urgency ordinance requires a four-fifths vote from City Council members present at
the hearing for passage and would take effect immediately upon adoption. The urgency
ordinance would automatically expire after 45 days, unless extended by the Council. The
effective term of the urgency ordinance may be extended by the Council for a total period not
to exceed 2 years. With the upcoming summer recess, staff anticipates requesting an extension
in August 2022.
Policy Issue: Research and Laboratory Uses as Potential Constraints on Housing Opportunity
Sites
Through the Housing Element update, the City identified several housing opportunity sites in
the Stanford Research Park and two industrial/manufacturing districts were certain hazardous
materials are permissible. Hazardous materials are defined in the zoning code based on a tiered
classification.2 New Tier 2 hazardous materials facilities must be located 300 feet away from
1 Under current zoning, GM and ROLM zones are primarily located along the southern (San Antonio Road) and
eastern (East Bayshore and West Bayshore Roads) edges of the City.
2 Tier 1 means uses with quantities of hazardous materials that are not defined as Toxic or Highly Toxic hazardous
materials and that are both above the threshold quantities in Health and Safety Code Division 20, Chapter 6.95 and
below the Title 19 thresholds of the California Code of Regulations.
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residential land uses and sensitive receptors.
There are seven pending applications involving hazardous materials on file with the City,
including four applications within the Stanford Research Park. Staff understands from Stanford
University representatives that, as landowner, the University does not permit new Tier 2
hazardous materials from being handled, stored or used within the Research Park. Accordingly,
staff does not anticipate the subject moratorium will have a significant impact on pending
applications in the Research Park.
The three other pending applications are in the GM and ROLM districts; it is unknown at this
time if those proposed facilities intend to use hazardous materials that may qualify as Tier 2.
Staff working on the Housing Element have already removed some housing sites from the
housing opportunity list due to its proximity to existing Tier 2 facilities. New Tier 2 facilities in
these districts could undermine the City’s interest in placing more housing units in this part of
the City.
Regulatory Issue: Ambiguity and Potential Inconsistencies in the City’s Hazardous Materials
Ordinances
In addition to the housing policy considerations, staff’s review of the different tiered hazardous
materials definitions in the zoning code are potentially problematic and may require revision.
For example, a Tier 2 use is one that achieves two requirements: first the quantity of the toxic
or highly toxic hazardous material must be above a certain threshold as set forth in the Health
and Safety Code, and below other thresholds in the California Code of Regulations.
In conversation with City staff and consultants, the referenced codes in the tiered definitions do
not always align. A toxic material listed in the Health and Safety Code may not be listed in the
California Code of Regulations making it difficult to correctly classify the proposed facility into
the appropriate tier. Moreover, in some instances, the California Code of Regulations threshold
may be below the Health and Safety Code standard, further complicating the proper
categorization. A significant amount of staff and consultant time is spent reviewing these
applications and the consequence of making an error is too great a concern to leave these
standards in place without further clarity. The proposed temporary moratorium would allow
staff time to study and prepare possible revisions the City’s fire and zoning regulations related
Tier 2 means uses with quantities of Toxic or Highly Toxic hazardous materials that are both above the threshold
quantities in Health and Safety Code Division 20, Chapter 6.95 and below the Title 19 thresholds of the California
Code of Regulations.
Tier 3 means uses with quantities of hazardous materials above the Title 19 thresholds of the California Code of
Regulations.
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to hazardous materials.
Regulatory Issue: Hazardous Material Control Areas
Another potential regulatory concern involves the State-authorized use of control areas in B-
occupancy buildings. Typically, a facility that handles, stores or uses hazardous materials is in an
H-occupancy building as defined in the building and fire code. Such buildings have certain
seismic, ventilation and other requirements to safely store and contain hazardous materials.
The State also allows business or B-Occupancy buildings, which are typical commercial
buildings, to include control areas within the building designed to meet certain building and fire
code standards. The amount of materials stored within a control room can be increased if there
are fire sprinklers and other safety measures incorporated into the design. Depending on the
size and number of stories of the building, there may be several control areas within a building
on each floor. At present, staff is reviewing these projects for compliance with applicable codes.
If the moratorium on Tier 2 hazardous materials is approved by Council, staff would also like to
further explore whether it would be feasible and appropriate to impose stricter standards at a
local level to limit the overall quantity of hazardous materials within a building. Many of the
City’s zoning districts that permit hazardous materials are also in proximity to sensitive land
uses and residentially zoned properties.
Summary of Key Issues:
Staff is seeing an increase in building permit applications for the handling, storage and use of
hazardous materials. Depending on the type and quantity of materials being used,
establishment of these land uses may frustrate the City’s interest to place housing in certain
areas of the City. Staff recommends a temporary moratorium on Tier 2 hazardous materials to
allow time to explore this policy concern and make recommended changes to the hazardous
materials municipal code regulations to improve clarity and administration of these
requirements.
Policy Implications:
If the moratorium is approved, some pending applications requesting to handle, store and use
hazardous materials may be prevented from obtaining a building permit. At this time staff is
unable to determine specifically which projects may be impacted as it is still working with
applicants to properly classify the proposed hazardous materials facility into the property tiered
category.
Beyond the pending applications, there are two other policy considerations, one involving the
use of control areas and whether the City can or wants to enact stricter standards than State
code due to the proximity of these uses to sensitive receptors. Another policy consideration
relates to future housing sites in Palo Alto. Specifically, does the City want to limit the
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expansion of Tier 2 hazardous materials to potentially preserve more housing opportunity sites
– or does the City want to explore other housing strategies through the Housing Element
process to make up for the potential forgone opportunity of some previously identified sites.
Resource Impact:
The recommendation in this report does not initially have any fiscal impacts. To provide a more
timely reivew and response to the key issues, consultant services may be necessary to augment
staff work. Staff has not identified a funding source at this time but it is anticipated any costs
can be absorbed through department budgets.
Timeline:
The interim ordiance would take place immediately upon adoption and last for 45 days. Before
this deadline expires staff would return with an extension for additional time to complete the
task, initially estimated to be about 4 months.
Stakeholder Engagement:
Staff reached out to representatives of the Stanford Research Park to advise the University of
the proposed temporary moratorium. Additional outreach to the broader community would
follow after adoption of the moratorium and for the drafting of potentially new, clarifying
regulations.
Environmental Review:
Council action on the proposed ordinance statutorily exempt from environmental review under
the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section
20180(b)(4) (specific actions necessary to mitigate or prevent an emergency) and is
categorically exempt from CEQA under CEQA Guidelines Sections 15301 (existing facilities) and
15304(e) (minor temporary use of land having negligible or no permanent effects on the
environment).
Attachments:
Attacment A: Hazardous Materials (Tier 2) Urgency Ordinance (PDF)
NOT YET APPROVED
Ordinance No. ____
Urgency Ordinance of the Council of the City of Palo Alto Imposing a Temporary
Moratorium on the Approval of Development Entitlements or Building Permits that
Entail the Storage, Use, or Handling of Hazardous Materials Within the General
Manufacturing (GM) District, Research, Office and Limited Manufacturing (ROLM)
District, and Research Park (RP) District
The Council of the City of Palo Alto does ORDAIN as follows:
SECTION 1. The Council of the City of Palo Alto finds and determines as follows:
A. The Council, pursuant to its police powers, has broad authority to maintain public
peace, health, and safety of its community and preserving the quality of life for its
residents.
B. Palo Alto Municipal Code Section 2.04.270 authorizes the adoption of an urgency
ordinance to protect the public peace, health or safety, where there is a declaration of
the facts constituting the urgency and the ordinance is adopted by four-fifths of Council
Members present.
C. Section 65858 of the California Government Code authorizes the Council to adopt as an
urgency measure an interim ordinance prohibiting any uses that may be in conflict with
a contemplated general plan, specific plan, or zoning proposal that the City is
considering or studying or intends to study within a reasonable time; such a measure
must be adopted by four-fifths vote of the Council.
D. Palo Alto Municipal Code Section 18.80.080 authorizes the Council, on its own initiative,
to make changes to provision of Title 18 Zoning, which shall then be forwarded to the
Planning Commission for review and recommendation.
E. Palo Alto Municipal Code Title 15 (Fire Code) and Title 17 (Hazardous Materials Storage)
regulate the storage, use, and handling of hazardous materials, as that term is defined
therein, for purpose of protecting health, life, resources, and property.
F. Palo Alto Municipal Code Title 18 (Zoning) regulates the development of sites in multi-
family, commercial, industrial, and planned community zoning districts that will entail
the storage, use, or handling of hazardous materials, as that term is defined therein, for
the purpose of minimizing hazards and balancing the needs of such developments with
the need to minimize impacts to surrounding neighborhoods and businesses.
G. Palo Alto Municipal Code Section 18.23.100 classifies hazardous materials uses into tiers
based on whether the use involves “toxic” or “highly toxic” hazardous materials, and
NOT YET APPROVED
whether the hazardous materials are present in quantities above thresholds contained
in certain state and federal regulations.
H. City of Palo Alto staff has identified ambiguous and uncertain criteria within the
municipal code that could result in a hazardous material use being misclassified into the
incorrect tier.
I. An urgency ordinance that is effective immediately is necessary to avoid the immediate
threat to public peace, health, and safety that could result from a potential
misclassification of a hazardous material use.
J. Palo Alto Municipal Code Section 18.23.100 requires a minimum 300 foot buffer
between Hazardous Materials Tier 2 uses and sensitive receptors or residential zones,
and requires that Hazardous Materials Tier 2 uses within 600 feet of sensitive receptors
or residential zones submit an emergency response plan to the City of Palo Alto Fire
Department and obtain a Conditional Use Permit.
K. An urgency ordinance that is effective immediately is necessary to avoid the immediate
threat to public peace, health, and safety that could result in the establishment of
Hazardous Materials Tier 2 uses in close proximity to housing opportunity sites, thereby
frustrating the City’s goals, policies, programs for additional housing development.
SECTION 2. During the effective term of this Ordinance, and notwithstanding subsection vi of
paragraph B of Section 18.23.100 of the Municipal Code, no development entitlements shall be
approved or building permits issued for “Hazardous Materials Tier 2” uses located within the
zoning districts designated General Manufacturing (GM), Research, Office and Limited
Manufacturing (ROLM), or Research Park (RP).
SECTION 3. Notwithstanding any provision contained in the Municipal Code to the contrary, the
time to act on any application for development entitlement or building permit affected by this
urgency ordinance shall be extended for a period equal to the effective term of this urgency
ordinance.
SECTION 4. Consistent with Section 18.80.080 of the Municipal Code, a copy of this Ordinance
and the accompanying staff report shall be forwarded to the Planning and Transportation
Commission to facilitate its review and recommendation.
SECTION 5. Severability.
If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held
to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such
decision shall not affect the validity of the remaining portions of this Ordinance. The City
NOT YET APPROVED
Council hereby declares that it would have passed this Ordinance and each and every section,
subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard
to whether any portion of the Ordinance would be subsequently declared invalid or
unconstitutional.
SECTION 6. CEQA.
The Council finds that the Ordinance is statutorily exempt from environmental review under
the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section
20180(b)(4) (specific actions necessary to mitigate or prevent an emergency) and is
categorically exempt from CEQA under CEQA Guidelines Sections 15301 (existing facilities) and
15304(e) (minor temporary use of land having negligible or no permanent effects on the
environment).
SECTION 7. Uncodified.
This ordinance shall not be codified.
SECTION 8. Effective Date and Term.
This ordinance shall be effective immediately upon its adoption by four-fifths of the City Council
and shall expire 45 days thereafter unless extended by four-fifths of the City Council.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
NOT PARTICIPATING:
ATTEST:
_________________________ ___________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
________________________ __________________________
Assistant City Attorney City Manager
___________________________
Director of Planning and Community Environment