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RESOLUTION RECOMMENDING THE CITY COUNCIL ADOPT AN ORDINANCE AMENDING TITLE 16 OF THE STOCKTON MUNICIPAL CODE, SECTION 16.80.390 RELATED TO INDUSTRIAL WAREHOUSE STANDARDS.
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RECOMMENDATION
Staff recommends that the Planning Commission adopt a resolution recommending that the City Council:
1) Find the proposed ordinance is exempt pursuant to the California Environmental Quality Act (CEQA) Section 15061(b)(3), and that no future environmental review is required for proposed code amendments pursuant to CEQA Section 15183 (Consistency with General Plan and Community Plan); and
2) Adopt an Ordinance Amending Title 16 (Development Code) of the Stockton Municipal Code (SMC), Chapter 16.80 Standards for Specific Land Uses, Section 16.80.390 Industrial Warehouse Standards, to include certain modifications.
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Summary
On December 12, 2023, the Stockton City Council considered a new industrial warehouse ordinance in compliance with separate settlement agreements between the City and the State Attorney General’s Office (AG) and Sierra Club, and adopted an ordinance to establish warehouse development standards that became effective on January 11, 2024. Council’s approval included direction for staff to evaluate and determine the feasibility of additional modifications to six development standards that were requested during public hearing comments. Staff was to return back to Council with a subsequent potential amendment to the industrial warehouse ordinance, following additional public outreach, and Planning Commission review and recommendation for Council’s consideration no later than the first Council meeting in July 2024.
The requested modifications to development standards include consideration of:
1. Increasing the minimum applicable warehouse size
2. Applicability of warehouse standards on development projects within the City Limits
3. Adjustments to minimum setback standards when adjacent to sensitive receptors
4. Clarification of solar installation requirements
5. Adjustments to electric truck charging infrastructure requirements
6. Adjustments to electric automobile charging infrastructure requirements
Following the December 12, 2023 Council meeting, staff initiated exploration of the six requested modifications summarized above. This entailed conducting research and gathering information on industry standards, meeting with stakeholders, conducting public outreach, and hosting a public workshop on March 6, 2024 to solicit feedback. On March 28, 2024, during the regularly scheduled Planning Commission meeting, staff held a public informational session where the Planning Commission, interested stakeholders, and general public discussed and worked through potential modifications to the existing ordinance language. At the conclusion of the session, staff received direction from the Planning Commission, based on their consensus, for preparing an amendment that includes certain modifications to three of the six potential development standards under consideration. These three modifications relate to size applicability, ordinance applicability and clarification for heavy duty truck charging.
At the Planning Commission’s direction, staff proposes an amendment to the recently adopted Industrial Warehouse ordinance that is based on a performed feasibility analysis. Staff is requesting the Planning Commission’s consideration and approval of a recommendation to the City Council to adopt an ordinance amending Title 16 to modify certain industrial warehouse development standards.
DISCUSSION
Background
On December 6, 2022, the City Council approved separate settlement agreements with the State Attorney General and Sierra Club, in conjunction with the approval of warehouse development project. Both agreements obligated City staff to propose a warehouse ordinance to identify and apply all feasible recommended mitigation measures to qualifying warehouse and logistics facility projects to minimize their potentially significant environmental impacts. Per the settlement agreements, a warehouse ordinance was to be presented for consideration by the City Council by December 31, 2023.
On October 26, 2023, the Planning Commission considered three ordinance options (A, B, and C) and recommended Council approval of the Option C Ordinance. On December 12, 2023, the City Council adopted the Option C Ordinance (Attachment A - Ordinance 2023-12-12-1602) that became effective on January 11, 2024. Based on public comments received during the public hearing, Council directed staff to explore potential modifications to six development standards that may require amending the newly adopted ordinance (Attachment B - Public Comments). Council’s direction to staff was to perform additional public outreach and prepare feasibility analysis on the six modifications and return back to Council with a proposed amendment no later than the first council meeting in July 2024 or earlier.
The following provides an overview of considerations for potential modification to the six development standards, that were proposed via public comments at the December 12, 2023 City Council Hearing. Some of the modifications have been summarized and they all can be read verbatim in Attachment B - Public Comments.
Modification #1: Increase Warehouse Size for Ordinance Applicability (Chamber of Commerce / San Joaquin Partnership)
Description: Consideration of the following change: These standards shall apply to all logistics warehouses 1400,000 square feet in size or greater.
Consideration:
• Would increase the minimum applicability of industrial warehouse size from 100,000 to 400,000 square feet, more in line with logistics uses.
• Smaller warehouse facilities (399,999 square feet or less) would not be subject to the industrial warehouse standards.
• Size increase would lessen the unintended impacts on smaller business owners and operators (i.e., non-fortune 500 companies).
• Could reduce the minimum lot size required for smaller warehouse buildings that may be accommodated on a 5.5 acre parcel, but would require as much as a 380% increase in lot size to meet the industrial warehouse standards.
• The last 10 entitled logistics projects in Stockton measured an average total size range of 700,000 square feet to 1,000,000 square feet
• Since 2016, 37 building permits have been approved for new warehouses 100,000 square feet or greater (average size ±420,000 square feet)
Modification #2: Applicability for new logistic warehouses (Holman LLC).
Description: Consideration of the following addition: Warehouse Ordinance standards shall not apply to any new building constructed on property that was incorporated into the City of Stockton prior to December 31, 2023.
Considerations:
• Since the Industrial Warehouse Ordinance became effective on January 11, 2024, this date may be most logical to consider for prior incorporation period.
• The Ordinance would not apply to new logistic warehouse facilities constructed on vacant properties that were located within the Stockton City Limits prior to December 31, 2023.
• SMC Section 16.04.050 already regulates project applicability and “vested” rights of completed applications when new Code standards are adopted. The inclusion of this additional “vesting” option would limit the City’s use of the warehouse standards to future annexation projects that meet size thresholds.
Modification #3: Change Minimum Setback Requirements (Stockton Environmental Justice Advocates (SEJA))
Description: Addition of a 2:1 setback to height ratio building setback requirement; remove options for design flexibility by not allowing “physically infeasible” from consideration for site with unique constraints in complying with 300-foot setback distance or the use EV trucks within the 300-foot setback area, and prohibit loading docks, truck entries, and drive aisles from abutting adjacent sensitive receptors.
To address clarity concerns raised by SEJA and the development industry at the Planning Commission informational session held in March, staff proposes making clarifications on uses and design elements that may be included within the 300’ setback area when adjacent to sensitive receptors. These uses and elements include stormwater basins, daytime employee gathering areas, pedestrian and bicycle pathways, outdoor storage areas, and an internal drive aisle for autos, trucks and emergency vehicles to circulate around the building, that would be located as close to the building as possible and not abut adjacent sensitive receptors. While the existing code did not explicitly include these, they are common elements of site design for industrial and office facilities. This language is not included in the proposed ordinance redlines (Attachment C - Redline/Strikeout Ordinance) as staff requests Planning Commission input prior to inclusion. With the Commission’s concurrence, the language would be added for the City Council’s review and consideration.
Considerations:
• Would prohibit all truck (Electric Vehicle and Fuel) movement, parking, and access within 300-feet of any sensitive receptor defined by code.
• Would impact future site design via building placement, location of parking and access, as well as what could be located within the 300-foot buffer should only 20-feet of landscaping be proposed for compliance.
• This change would achieve the EJA’s desired result of completely prohibiting trucks within 300-feet of a defined sensitive receptor.
• Could significantly impact site design for smaller projects where the project site does not have enough spaces to accommodate a total restriction of trucks within 300-feet. For example, a 5.5-acre site proposing a 100,000 square feet warehouse facility could have a project boundary of around 480 feet x 480 feet. A 300-foot buffer restriction would restrict truck movement to less than 25-percent of the site of the entire project site should it be boarded on one side by a sensitive receptor.
• Could result in larger land annexations to accommodate 300-foot buffer restriction.
Modification #4: Clarification on Solar Installation Process (SEJA )
Description: Consideration of the following addition: The solar system installation should be done by owners, operators, tenants, or a qualified solar system contractor.
Considerations:
• The current City Building Permit process already requires this for solar (photovoltaic) system construction permit approval.
Modification #5: Additional Electric Vehicle (EV) Charging Facilities (SEJA)
Description: Facilitate future charging stations by expanding the current electric vehicle charging station infrastructure requirement to include light-heavy duty (LHD) and medium-heavy duty (MHD) in addition to heavy-heavy duty (HHD) trucks. Also requests conduits to be provided to meet future Electric Vehicle Chargers Stations (EVCS) needs; and conduit to be provided on the site to serve 50% of the number of truck docking stations. Location of conduit is at discretion of the developer (e.g., truck trailer parking spaces or docking stations).
Considerations:
• Could potentially lead to more EV charging stations (EVCS) and EV-ready facilities.
• Potential added cost for additional spaces.
• Currently adopted California Green Building Standards Code (CALGreen) generally already require this. In addition to the conduit requirements, CALGreen currently requires upsizing of the electrical service to accommodate future medium- and heavy-duty EVCS for warehouse uses.
Modification #6: Additional Electric Vehicle (EV) Charging Facilities (SEJA)
Description: Consideration of the following additions:
• At least 10% of all passenger vehicle parking spaces shall be electric vehicle (EV) ready, with all necessary conduit and related appurtenances installed.
• At least 5% of all passenger vehicle parking spaces shall be equipped with working Level 2 Quick charge EV charging stations installed and operational, prior to building occupancy.
• Signage shall be installed indicating EV charging stations and specifying that spaces are reserved for clean air/EV vehicles.
• Unless superior technology is developed that would replace the EV charging units, facility operator and any successors in interest shall be responsible for maintaining the EV charging stations in working order for the life of the facility.
Considerations:
• Potential additional EV charging and quick charging spaces.
• Potential added Cost for additional spaces.
• Current adopted California Green Building Standards Code (CALGreen) generally requires this. CALGreen currently has minimum requirements to provide EV capable spaces in quantities greater than the proposed amendment and substantially similar requirements for spaces provided with EV equipment. CALGreen currently requires Level 2 chargers or the highest-level Direct Current Fast Charging type.
Present Situation
Earlier this year, staff initiated the preparation of potential modifications to the adopted industrial warehouse ordinance. This entailed conducting research, gathering information on available industry standards, public outreach, and meeting with interested stakeholders. On March 6, 2024, the City hosted a public workshop on the requested modifications to the recently adopted Warehouse Ordinance at the Robert J. Cabral Agricultural Center from 5 p.m. to 7 p.m. At the request of a stakeholder, staff provided 250 copies of the meeting flyer written in both English and Spanish for stakeholder distribution to encourage participation. The workshop was attended by 30 members of the public, and approximately 20 attending virtually via Teams. At the meeting, staff described the six requested modifications and responded to comments and questions raised by all attendees. Attachment D includes the workshop presentation, meeting notes and comments received at the meeting. All past hearing and workshop materials for the Warehouse Ordinance are located on Community Development Department’s (CDD) “Zoning Update” website (https://www.stocktonca.gov/business/planning___engineering/zoning/zoning_update.php).
On March 28, 2024, a public Planning Commission informational session was held to obtain feedback from the Planning Commission, interested stakeholders, and general public regarding the requested modifications to the existing ordinance. Staff presented the six requested modifications and public comments were received, most notably related to the setback area, warehouse size applicability, and ordinance applicability. At the conclusion of the session, the Commission directed staff to prepare an Ordinance that includes two of requested modifications related to warehouse size and ordinance applicability, and a third modification that proposes code language to clarify EV truck types subject to required charging facilities. The remaining three public requested modifications related to Buffer, Solar, and EV Auto Charging Facilities were not supported by the Planning Commission for amendment. The Commission's recommended changes to the ordinance are reflected in Attachment C - Redline/Strikeout Ordinance.
STAFF ANALYSIS
Based on the proposed Ordinance recommended by the Planning Commission, staff provides the following analysis:
Development Code Amendment
The proposed ordinance amendment complies with the City’s General Plan policies to provide enhanced development measures to mitigate potential environmental impacts from future projects and encourage orderly growth within the City’s areas designated for industrial use. The proposed ordinance amendment is internally consistent with all policy and supportive regulatory documents and will not be detrimental to the public interest, health, safety, convenience, or welfare, and will not result in a physical change in the environment. This includes the following policies:
• Policy TR-3.2 Require new development and transportation projects to reduce travel demand and greenhouse gas emission, support electric vehicle charging, and accommodate multi-passenger autonomous vehicle travel as much as feasible.
• Policy SAF-4.1 Reduce air impacts from mobile and stationary sources of air pollution.
• Policy CH-2.3 Focus on reducing the unique compounded environmental impacts and risks in disadvantaged communities.
• Policy SAF-2.5 Protect the community from health hazards and annoyance associated with excessive levels.
A feasibility analysis was conducted for the proposed amendment using the same methodology as the one used for the original Industrial Warehouse Ordinance adoption (Attachment E Feasibility Analysis). The feasibility analysis was prepared by the City with the help of outside consultants, PlaceWorks, who were independently hired by the City.
The analysis considered all six modifications and concluded that many of the proposed changes are already required by building codes or current city regulations, such as solar installation and EV parking for trucks and automobiles. The restriction of site design elements and uses in the required 300 foot setback area is expected to increase costs significantly for private applicants and could affect smaller facilities that have limited space for internal truck movement within 300 feet of the project site. However, proposed modifications for annexation and size applicability are expected to reduce potential cost increases for the development community as current projects and smaller facilities (less than 400,000 square feet) would not be subject to the objective warehouse standards.
Environmental Analysis
The proposed ordinance is exempt pursuant to the California Environmental Quality Act (CEQA) Section 15061(b)(3), (Common Sense Exemption) and that no future environmental review is required for proposed code amendments pursuant to CEQA Section 15183 (Consistency with General Plan and Community Plan).
For Section 15061(b)(3) Exemption (“Common Sense Exception”)
CEQA requires the analysis of agency approvals for discretionary actions that could lead to a direct or indirect physical change in the environment. The proposed Project involves discretionary amendments to the Stockton Municipal Code (SMC) but is exempt from CEQA review as it would not significantly impact the environment. The Zoning Code amendments would amend the City’s zoning standards to add enhanced development standards for logistic warehouse construction and operation. These amendments are consistent with General Plan policies to enhance project reviews, environmental protections, and balance changes to encourage a strong industrial and goods movement market. The amendment would not result in a physical change to the environment as future projects would be reviewed on a case-by-case basis for this consistency to Federal, State, General Plan, zoning, and developmental standards. The Project is exempt from CEQA because it would not significantly affect the environment.
For Section 15183 (General Plan Consistency) Exemption
The General Plan Environmental Impact Report (GP EIR) was prepared and certified by the City Council as part of the Envision Stockton 2040 General Plan process (SCH# 2017052062). The proposed code amendments would amend the City’s zoning standards to add enhanced development standards for logistic warehouse construction and operation. These amendments are consistent with General Plan policies to enhance project reviews, environmental protections, and balance changes to encourage a strong industrial and goods movement market. The amendment would not result in a physical change to the environment as future projects would be reviewed on a case-by-case basis for this consistency to Federal, State, General Plan, zoning, and developmental laws and standards. No potential new impacts related to the Project have been identified that would necessitate further environmental review beyond the impacts and issues already disclosed and analyzed in the GP EIR. Therefore, no additional environmental review is required per CEQA Guidelines Section 15183 (Consistency with General Plan or Community Plan).
Public Notice
Notice for the Planning Commission public hearing for this request was published in The Record on May 1, 2024. An e-mail notice was sent to all residents and stakeholders that have shown interest in the amendment at least ten days before the hearing. As of the publication of this report, no written comments have been received.
This staff report was prepared by Matt Diaz, Advanced Planning Manager, (209) 937-8598 or via e-mail: matt.diaz@stocktonca.gov.
Attachment A - Approved Ordinance 2023-12-12-1602
Attachment B - Public Comments
Attachment C - Proposed Ordinance (Redline/Strikeout)
Attachment D - Workshop Materials (March 6, 2024)
Attachment E - Ordinance Feasibility Analysis