Staff Report. Referendum
PREPARED BY: Gabrielle Whelan, Town Attorney
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Community Development
Director, Planning Manager, and Interim Finance Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 10/18/2022 ITEM NO: 11
DATE: October 13, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Discuss the Housing Element Process and the Next Steps for the Referendum
of the 2040 General Plan Land Use and Community Design Elements, and
Provide Direction on the Preferred Approach for the Referendum
RECOMMENDATION:
Discuss the Housing Element process and next steps for the referendum of the 2040 General
Plan Land Use and Community Design Elements, and provide direction on the preferred
approach for the Referendum.
BACKGROUND:
In accordance with the State Elections Code, sufficient signatures have been collected on a
petition to referend the Land Use and Community Design Elements of the Town’s 2040 General
Plan. This means that the question of whether or not the Land Use and Community Design
Elements of the 2040 General Plan should be adopted has qualified for placement on an
upcoming ballot. In accordance with Elections Code Section 9237, the effective date of those
two Elements is currently “suspended.”
Elections Code Section 9241 provides that, if the Town Council does not repeal the legislation
that is being referended, the Town Council shall submit the legislation to the voters at either a
special election or a regular municipal election. Either the special election or the regular
municipal election must be conducted at least 88 days after the Town Council votes to put the
PAGE 2 OF 4 SUBJECT: Housing Element Process and Next Steps on Referendum of 2040 General Plan Land Use and Community Design Elements DATE: October 18, 2022
BACKGROUND (continued):
legislation on the ballot. The legislation (e.g., the Land Use and Community Design Elements of
the 2040 General Plan) would not take effect until approved by a majority of the voters. The
options are discussed in more detail later in this report. There is no immediate deadline for the
Town Council to decide its preferred approach to address the Referendum.
At the last Council meeting, the Council expressed interest in understanding the relationship
between the Referendum and the Housing Element. Regardless of the Referendum option the
Town Council ultimately chooses, the Housing Element update process will continue to move
forward concurrently.
The public comment period for the Initial Public Review Draft of the Housing Element ended on
September 27, 2022. After making some changes to the Draft Housing Element, the Town has
submitted it along with a response to comments to the California Department of Housing and
Community Development (HCD) for its first preliminary review. The review by HCD can take up
to 90 days to complete. Based on the experience of other California communities, the process
is expected to include multiple reviews by HCD, and this review is a chance for preliminary
feedback to guide future revisions.
Initiating this first review by HCD is critical, both because of the tight timeline available for this
process, and so the Town Council, Planning Commission, and Housing Element Advisory Board
(HEAB) have input from HCD for their future discussions. The Town has a legal obligation to
adopt the final Housing Element within 120 days of the statutory deadline of January 31, 2023.
Staff has included two implementation programs in the Draft Housing Element submitted to
HCD that require updates to the 2020 General Plan Land Use Element and Zoning Regulations.
These implementation measures would affect the regulations in the 2020 General Plan Land
Use Element while it is in effect during the suspension period imposed by the referendum, and
the Zoning Regulations for those sites included in the Site Inventory of the Draft Housing
Element.
DISCUSSION:
The Town Council’s options in response to the Referendum are:
A. Hold a Special Election for Consideration of the Ballot Measure
The Town Council could vote to place the measure on the ballot at a special election in
2023.
PAGE 3 OF 4 SUBJECT: Housing Element Process and Next Steps on Referendum of 2040 General Plan Land Use and Community Design Elements DATE: October 18, 2022
DISCUSSION (continued):
The established Special Election dates for 2023 are March 7, May 2 (mail-in ballot only),
August 29 (mail-in ballot only), and November 7. Following are the dates between
which a resolution can be submitted to the Registrar of Voters to place a measure on
the ballot and call a Special Election:
• March 7, 2023 election: November 24 – December 9, 2022
• May 2, 2023 election: January 19 – February 3, 2023
• August 29, 2023 election: May 18 – June 2, 2023
• November 7, 2023 election: July 27 – August 11, 2023
The estimated cost for a stand-alone Special Election is approximately $900,000 -
$1,000,000 and the estimated cost for a stand-alone mail in ballot only Special Election
is approximately $600,000 - $700,000.
B. Place the Measure on the Ballot at the November 2024 General Municipal Election
The Town Council could vote to place the measure on the ballot for the General
Municipal Election in November of 2024.
The deadline for placing a measure on the November 5, 2024, General Election has not
yet been posted on the Registrar of Voters website. Typically, the deadline to submit a
resolution placing a measure on the ballot is 88 days before the Election Day, which
would be August 9, 2024.
The estimated cost for placing a measure on the November 5, 2024 ballot is
approximately $145,000.
C. Rescind the Land Use and Community Design Elements of the 2040 General Plan and
Adopt Revised Elements
The Town Council could vote to rescind its adoption of the Land Use and Community
Design Elements of the 2040 General Plan and adopt revised Land Use and Community
Design Elements. This option could be completed at any time prior to the November
2024 general municipal election. Doing so no later than three months prior to the
election would give the referendum proponents an opportunity to remove the ballot
measure from the ballot.
If the Town Council wishes to place a competing ballot measure on the ballot, the
competing ballot measure should be submitted no later than six months before the
election in order to meet the deadline for providing ballot materials to the County
PAGE 4 OF 4 SUBJECT: Housing Element Process and Next Steps on Referendum of 2040 General Plan Land Use and Community Design Elements DATE: October 18, 2022
DISCUSSION (continued):
Registrar. Development of revised Land Use and Community Design Elements would
include review by the General Plan Committee (GPC) and the Planning Commission (PC)
prior to Town Council consideration and adoption.
Please note that regardless of the Referendum option the Town Council chooses, the Housing
Element update process will continue to move forward concurrently.
CEQA:
The Town Council’s decision with regard to next steps is not a project subject to the California
Environmental Quality Act (CEQA). The environmental impacts of any revisions to the Land Use
and Community Design Elements will undergo CEQA review.
CONCLUSION AND NEXT STEPS:
Staff looks forward to the Town Council’s discussion and direction. To structure the Council
conversation, the Council may wish to follow the organization of this report by first discussing
the Housing Element and then each Referendum option.
If the Council decides to move forward with one of the election options, staff will bring forward
the appropriate resolution during the required timeframe for the preferred election date. If the
Council prefers to rescind the two Elements, a resolution for the rescission will be brought
forward at a later date and at that time, the Council may provide additional direction for the
preparation of new Land Use and Community Design Elements.
COORDINATION:
This report was coordinated with the Town Attorney, Town Clerk, and Community
Development Director.
FISCAL IMPACT:
The fiscal impacts are outlined above.