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ADOPTION OF AN ORDINANCE AMENDING TITLE 16 OF THE STOCKTON MUNICIPAL CODE, SECTION 16.80.390 RELATED TO INDUSTRIAL WAREHOUSE STANDARDS
recommended action
RECOMMENDATION
It is recommended 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 and adopted a new industrial warehouse ordinance to establish development standards, in compliance with separate settlement agreements between the City and the State Attorney General’s Office (AG) and Sierra Club. As a part of Council’s approval, staff was directed to evaluate and determine the feasibility of additional modifications related to size and applicability and additional requested changes from Stockton Environmental Justice advocates. Staff was to return 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 100,000 square foot warehouse size to 400,000 square foot and greater.
2. Applicability of warehouse standards on future development projects that include annexation versus projects developing within the existing City Limits.
3. Adjustments to minimum setback standards when adjacent to sensitive receptors.
4. Clarification of qualified installers for solar systems.
5. Adjustments to electric truck charging infrastructure requirements.
6. Adjustments to electric automobile charging infrastructure requirements.
Early this year, staff-initiated exploration of the six requested modifications summarized above. This entailed conducting research, gathering information on industry standards, meeting with stakeholders, conducting public outreach, and hosting a public workshop on March 6, 2024, to solicit public feedback. On March 28, 2024, during the regularly scheduled Planning Commission meeting, a public informational work session was held where the Planning Commission, City staff, interested stakeholders, and general public discussed and worked through the six potential modifications. At the conclusion, staff received direction from the Planning Commission, based on their consensus, for preparing an amendment.
On May 9th, the Planning Commission held a public hearing to consider an amendment to the Industrial Warehouse Ordinance. The Planning Commission unanimously approved (6-0 vote) a recommendation to City Council to amend the Title 16 Ordinance via modifications to four of the six industrial warehouse development standards that were under consideration.
DISCUSSION
Background
On December 12, 2023, the City Council adopted the Option C Ordinance (Attachment A - Approved 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 under consideration and return back to Council with a proposed amendment no later than the first council meeting in July 2024.
Early 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, seeking public input, and meeting with interested stakeholders. In addition to required noticing, E-mail notices were sent to all residents and stakeholders that have shown interest in the amendment in advance of the public workshop and informational work session.
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 in advance of the meeting. 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 C includes the workshop presentation that provides an overview of the six modifications and considerations for evaluation along with meeting notes and comments received.
On March 28, 2024, a Planning Commission informational work 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 required setback area, warehouse size applicability, and ordinance applicability. At the conclusion of the session, the consensus of the Commission was for staff to prepare an Ordinance including four of the six modifications for their consideration at an upcoming meeting.
Present Situation
On May 9, 2024, the Planning Commission held a public hearing to consider the proposed ordinance amendment. Three individuals made in-person comments and two written comments were received. Following, the Planning Commission approved a resolution recommending the City Council approve four changes to the existing logistic warehouse ordinance, which are summarized below and reflected in Attachment D - Redline/Strikeout Ordinance.
• Increase Ordinance applicability of warehouse size from 100,000 to 400,000 square feet.
• Ordinance shall not apply to any new warehouse building constructed on property that was incorporated into the City of Stockton prior to December 31, 2023.
• Clarify site design elements that may be included within the minimum 300-foot setback area.
• Addition of light-heavy duty (LHD) and medium-heavy duty (MHD) trucks to installation requirements for future electric charging stations.
STAFF ANALYSIS
Based on the proposed Ordinance recommended by the Planning Commission, staff provides the following analysis for Council’s consideration:
Development Code Amendment
In accordance with the Findings of Fact (SMC 16.116.050.B) the proposed ordinance amendment complies with the City’s mandatory findings for approval. This includes compliance with 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. Also, 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 Requires 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 Reduces air impacts from mobile and stationary sources of air pollution.
• Policy CH-2.3 Focuses on reducing the unique compounded environmental impacts and risks in disadvantaged communities.
• Policy SAF-2.5 Protects the community from health hazards and annoyance associated with excessive levels.
A feasibility analysis was conducted for the proposed amendments using the same methodology as the one used for the original Industrial Warehouse Ordinance adoption. The feasibility analysis was prepared by the City with the assistance of an outside consultant, PlaceWorks, who was independently hired by the City. The analysis considered all six modifications and concluded that many of the proposed changes are already required by California 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 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. See Attachment E - Feasibility Analysis.
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 consistency with 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 City Council public hearing for this request was published in The Record on June 28, 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.
FINANCIAL SUMMARY
The requested action to amend the Stockton Municipal Code Title 16 (Development Code) will have no immediate financial impact.
Attachment A - Approved Ordinance 2023-12-12-1602
Attachment B - Public Comments
Attachment C - Workshop Materials (March 6, 2024)
Attachment D - Proposed Ordinance (Redline/Strikeout)
Attachment E - Ordinance Feasibility Analysis
Attachment F - Approved Planning Commission Resolution