For City Council Meeting September 9, 2025
TO: Honorable Mayor and City Council
APPROVAL: Tanya Williams, City Manager
FROM: Christina Taylor, Community Development Director
Title
Request the City Council Conduct a Public Hearing to Introduce for First Reading of Ordinance No. 1703, entitled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RIALTO, CALIFORNIA, AMENDING PORTIONS OF CHAPTER 18.112 (INDOOR STORAGE USES) OF THE RIALTO MUNICIPAL CODE FOR COMPLIANCE WITH CALIFORNIA STATE ASSEMBLY BILL 98 (AB 98)”, reading by title only and waiving full reading thereof.
(ACTION)
Body
RECOMMENDATION:
Staff recommends that the City Council:
1) Conduct a Public Hearing; and
2) Introduction of Ordinance (Exhibit A) to amend portions of Chapter 18.112 (Indoor Storage Uses) of the Rialto Municipal Code for compliance with California State Assembly Bill 98 (AB 98).
APPLICANT:
City of Rialto, 150 S. Palm Avenue, Rialto, CA 92376
BACKGROUND:
In January 2021, the City of Rialto became a forerunner on indoor storage facility regulations with the adoption of Ordinance No. 1653, which created Chapter 18.112 (Indoor Storage Uses) of the Rialto Municipal Code to regulate the establishment, modification, expansion, or intensification of indoor storage facilities within the City limits. The term “indoor storage facilities” is all-encompassing and includes storage warehouses, fulfillment centers, and other buildings often referred to as “logistic facilities”.
In September 2024, Governor Gavin Newsom signed Assembly Bill 98 (AB 98) into law, establishing environmental and design standards for logistics facilities near sensitive receptors (residences, parks, schools, etc.) to mitigate impacts on air quality, noise, and traffic. A copy of AB 98 is attached as Exhibit B.
AB 98 identified the City of Rialto as being within a “Warehouse Concentration Region”. Cities within the “Warehouse Concentration Region” are required to incorporate the provisions of AB 98 into their municipal codes by January 1, 2026. As a result, the Planning staff has analyzed the provisions of AB 98 and crafted a Draft Ordinance for review and consideration by the City Council.
ANALYSIS/DISCUSSION:
The Draft Ordinance (Exhibit A) proposes textual changes to Chapter 18.112 (Indoor Storage Uses) of the Rialto Municipal Code to achieve compliance with AB 98. Additions within the Draft Ordinance are shown in bold italics and deletions in strikethroughs.
In summary, the Ordinance will:
1. Amend Section 18.112.020 of the Rialto Municipal Code to include definitions for the following:
a. “Logistics facility”
b. “Expansion of an indoor storage facility use”
c. “Sensitive receptor”
d. “Heavy-duty truck”
e. “21st Century Warehouse Design”
f. “Tier 1 – 21st Century Warehouse Design”
2. Amend Section 18.112.030 of the Rialto Municipal Code applying the new AB 98 provisions to all entitlement applications for new or expanded indoor storage facilities that were filed after September 29, 2024 – the effective date of AB 98.
3. Amend Section 18.112.040 of the Rialto Municipal Code to add new siting criteria requiring new indoor storage facilities to be located along Arterial, Collector, and Local roads that predominantly serve commercial uses.
4. Amend Section 18.112.050 of the Rialto Municipal Code to add development standards required by AB 98, which consist of the following:
a. Development standards for new or expanded indoor storage facilities less than 250,000 square feet in size on an industrial-zoned site with loading bays within 900 feet of a sensitive receptor, including:
i. Orient truck loading bays away from sensitive receptors.
ii. Locate truck entries, exits, and internal circulation away from sensitive receptors.
iii. Minimum 50-foot buffer adjacent to sensitive receptors.
iv. Energy requirements.
1. Solar installation
2. Cool roofing
3. Medium and heavy-duty vehicle charging readiness
4. Light-duty vehicle charging readiness and installed charging stations
v. Electrical conduits installed at each loading bay serving cold storage.
vi. High-efficiency heating, ventilation, and air-conditioning.
vii. Separate entrances for heavy-duty trucks on roads that predominantly serve commercial oriented uses.
b. Development standards for new or expanded indoor storage facilities 250,000 square feet or more in size on an industrial-zoned site with loading bays within 900 feet of a sensitive receptor, including:
i. Tier 1 – 21st Century Warehouse Design elements
ii. Orient truck loading bays away from sensitive receptors.
iii. Locate truck loading bays a minimum of 300 feet from sensitive receptors.
iv. Separate entrances for heavy-duty trucks on roads that predominantly serve commercial-oriented uses.
v. Locate truck entries, exits, and internal circulation away from sensitive receptors.
vi. No truck drive aisles along the sides adjacent to sensitive receptors.
vii. Minimum 50-foot buffer adjacent to sensitive receptors.
c. Development standards for new or expanded indoor storage facilities with loading bays within 900 feet of a sensitive receptor on non-industrial zoned land that needs to be rezoned, including:
i. Tier 1 – 21st Century Warehouse Design elements (250,000 square feet or more).
ii. 21st Century Warehouse Design elements (less than 250,000 square feet).
iii. Orient truck loading bays away from sensitive receptors.
iv. Locate truck loading bays a minimum of 500 feet from sensitive receptors.
v. Separate entrances for heavy-duty trucks on roads that predominantly serve commercial-oriented uses.
vi. Locate truck entries, exits, and internal circulation away from sensitive receptors.
vii. No truck drive aisles along the sides adjacent to sensitive receptors.
viii. Minimum 100-foot buffer adjacent to sensitive receptors.
d. Two-to-one replacement of any demolished housing that was on-site and occupied within the last ten (10) years. Replacement units must be deed-restricted to house low- or moderate-income families only.
e. Displaced tenants provided equivalent to 12 months’ rent at the current rate.
f. Truck court entry gate setback of 70 feet minimum and 70 additional feet for every 20 loading bays beyond 50 loading bays.
g. Signage at truck exit driveways directing trucks to the nearest truck route.
h. Anti-idling signs installed at all truck court entrances and loading bays.
The proposed Ordinance, as written, will achieve compliance with AB 98.
Jobs & Economic Impact
The full impact of AB 98 on the City of Rialto is uncertain, however, a Special Report prepared by the California Center for Jobs & the Economy (Exhibit C) recently estimated that California’s current regulatory environment, including AB 98, will result in a reduction in market share to competing states, which will lead to fewer jobs and reduced local and state tax revenue. Specific estimates include 45,400 jobs lost annually in Southern California, $3.86 billion in reduced labor income, and $590.9 million in lost local and state tax revenue in Southern California.
Since AB 98 was signed into law in September 2024, only one (1) new development application for an indoor storage facility has been received by the Planning Division. That particular application is for an 89,000 square foot expansion to an existing storage warehouse within the Renaissance Specific Plan area. No new indoor storage facilities have been proposed within the City of Rialto since the signing of AB 98.
GENERAL PLAN CONSISTENCY:
The proposed Ordinance will create a public review process for an amendment to Chapter 18.112 (Indoor Storage Uses) of the Rialto Municipal Code and achieve consistency with AB 98 requirements. As such, it is consistent with the following City of Rialto General Plan policies:
Guiding Principle: Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
ENVIRONMENTAL IMPACT:
The adoption of the proposed Ordinance is exempt from the California Environmental Quality Act (CEQA). Pursuant to Section 15378 of the California Environmental Quality Act, a ‘Project’ means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. A project does not include:
• Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
The Planning Division will file a Notice of Exemption with the Clerk of the Board of San Bernardino County in accordance with CEQA upon completion of the Ordinance.
LEGAL REVIEW:
The City Attorney has reviewed and approved the staff report and the ordinance as to form.
FINANCIAL IMPACT:
Operating Budget Impact
The Ordinance will not result in any impact to the City’s operating budget.
Capital Improvement Budget Impact
The Ordinance does not include any development; therefore, there are no financial costs associated with the Ordinance.
Business License
The adoption of an Ordinance does not require a business license.