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Ord 2359 - Amend Chapter 29, "Zoning Regularions," of the T.C. Regarding Senate Bill (SB) 9 for Modified Design Review StandardsORDINANCE2359 AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS AMENDING CHAPTER 29, "ZONING REGULATIONS," OF THE TOWN CODE REGARDING SENATE BILL (SB) 9 FOR MODIFIED DESIGN REVIEW STANDARDS AND OTHER CLARIFYING REVISIONS TOWN CODE AMENDMENT APPLICATION A-24-003 PROPERTY LOCATION: TOWN WIDE APPLICANT: TOWN OF LOS GATOS WHEREAS, the Town of Los Gatos (Town) has adopted a General Plan to ensure a well -planned and safe community; and WHEREAS, protection of public health, safety, and welfare is fully articulated in the General Plan; and WHEREAS, State law requires that the Town's Zoning Code conform with the General Plan's goals and policies; and WHEREAS, in 2021, the California Legislature approved, and the Governor signed into law Senate Bill (SB) 9, which among other things, adds Government Code Sections 65852.21 and 66411.7 to impose new limits on local authority to regulate two -unit housing developments and urban lot splits; and WHEREAS, SB 9 requires the Town to provide for the ministerial (or "by right") approval of a housing development containing no more than two residential units of at least 800 square feet in floor area (two -unit housing development) and a parcel map dividing one existing lot into two approximately equal parts (urban lot split) within a single-family residential zone for residential use; and WHEREAS, SB 9 eliminates discretionary review and public oversight of proposed housing developments containing no more than two residential units by removing public notice and hearings by the Development Review Committee or Planning Commission, by authorizing only administrative review of the project, and by requiring ministerial approval of a two -unit housing development that meets objective standards; and WHEREAS, SB 9 eliminates discretionary review and public oversight of the proposed subdivision of one lot into two parcels by removing public notice and hearings by the Development Review Committee or Planning Commission, by requiring only administrative review of the project, and by providing ministerial approval of an urban lot split, and also authorizes local agencies to adopt an ordinance allowing for up to a 24- month additional map extension, for the use of an approved or conditionally approved Tentative Parcel Map; and 1 of 18 Ordinance 2359 May 21, 2024 WHEREAS, SB 9 exempts SB 9 projects from environmental review as required by the California Environmental Quality Act (CEQA), by establishing a ministerial review process without discretionary review or a public hearing; and WHEREAS, SB 9 allows the Town to adopt objective zoning and subdivision standards for two -unit housing developments and urban lot splits; and WHEREAS, the Town desires to amend its local regulatory scheme to comply with and implement Government Code Sections 65852.21 and 66411.7 and to appropriately regulate projects under SB 9; and WHEREAS, on November 15, 2022, Town Council adopted Ordinance 2334 to regulate SB 9 projects within the Town; and WHEREAS, at the February 13, 2024, Strategic Priorities meeting, Town Council voted to include a request for a modification to the second -story step -back requirement for SB 9 units (Section 29.10.630.(2)(e) of Ordinance 2334) within the Town's upcoming Strategic Priorities for ordinance amendments; and WHEREAS, the Planning Commission at its meeting on April 10, 2024, reviewed the proposed amendments to the Town Code regarding SB 9 second -story step -back requirements and other clarifying revisions as recommended by staff, held a public hearing, and forwarded a recommendation of approval to the Town Council with recommended modifications related to prohibited exterior materials and screening requirements for ground -mounted mechanical equipment; and WHEREAS, this matter was regularly noticed in conformance with State and Town law and came before the Town Council for public hearing on May 7, 2024; and WHEREAS, on May 7, 2024, the Town Council accepted the report of the Planning Commission's recommendation of approval for the proposed amendments to the Town Code regarding SB 9, held a public hearing, and voted to introduce the Ordinance. NOW, THEREFORE, BE IT ORDAINED by the Town Council of the Town of Los Gatos as follows: SECTION I. Section 29.10.600, "Purpose and Applicability," of Division 10., "Two -Unit Housing Development and Urban Lot Splits," of Chapter 29, "Zoning Regulations," is amended to read as follows: The Town Council finds and determines that this Division is applicable only to voluntary applications for two -unit housing developments and urban lot splits consistent with Senate Bill (SB) 9. Owners of real property or their representatives may continue to exercise rights for 2of18 Ordinance 2359 May 21, 2024 property development in conformance with the Zoning Code and Subdivision Code. Development applications that do not satisfy the definitions for a two -unit housing development or an urban lot split provided in Section 29.10.610 (Definitions) shall not be subject to this Ordinance. Any provision of this Division which is inconsistent with SB 9 shall be interpreted in a manner which is the most limiting on the ability to create a two -unit housing development or urban lot split, but which is consistent with State law. The provisions of this Division shall supersede and take precedence over any inconsistent provision of the Town Code to the extent necessary to effect the provisions of this Division. SECTION II. Section 29.10.610, "Definitions," of Division 10., "Two -Unit Housing Development and Urban Lot Splits," of Chapter 29, "Zoning Regulations," is amended to read as follows: In addition to definitions contained in Chapter 24 (Subdivision Regulations) and Chapter 29 (Zoning Regulations), the following definitions apply for purposes of this Division. Where a conflict may exist, the definitions in this Division shall apply. Acting in concert means persons, as defined by Government Code Section 82047, as that section existed on January 1, 2022, acting jointly to pursue development of real property whether or not pursuant to a written agreement and irrespective of individual financial interest. Addition means any construction which increases the size of a building or facility in terms of site coverage, height, length, width, or gross floor area. Adjacent parcel means any parcel of land that is: touching the parcel at any point; separated from the parcel at any point only by a public right-of-way, private street or way, or public or private utility, service, or access easement; or separate from another parcel only by other real property which is in common ownership or control of the applicant. Alteration means any construction or physical change in the arrangement of rooms or the supporting members of a building or structure or change in the relative position of buildings or structures on a site, or substantial change in appearances of any building or structure. Car -share vehicle means a motor vehicle that is operated as part of a regional fleet by a public or private car sharing company or organization and provides hourly or daily service. Common ownership or control means property owned or controlled by the same person, persons, or entity, or by separate entities in which any shareholder, partner, member, or family member of an investor of the entity owns ten percent or more of the interest in the property. Entryfeature means a structural element, which leads to an entry door. Existing structure means a lawfully constructed building that has received final building permit clearance. First residential unit means one of two primary dwelling units developed under a two -unit 3 of 18 Ordinance 2359 May 21, 2024 housing development and can be an existing primary dwelling unit if it meets or is modified to meet the 1,200-square foot floor area limitation on first residential units. Flag lot means "lot, corridor" as defined in Section 29.10.020 of Town Code. Nonconforming zoning condition means a physical improvement on a property that does not conform with current zoning standards. Two -unit housing development means an application proposing no more than two primary dwelling units on a single parcel located within a single-family residential zone as authorized by Government Code Section 65852.21. A two -unit housing development shall consist of either the construction of no more than two new primary dwelling units, one new primary dwelling unit and retention of one existing primary dwelling unit, or retention of two existing legal non- conforming primary dwelling units where one or both units are subject to a proposed addition or alteration. Public transportation means a high -quality transit corridor, as defined in subdivision (b) of Public Resources Code Section 21155, or a major transit stop, as defined in Public Resources Code Section 21064.3. Single-family residential zone means a "R-1 or Single -Family residential Zone", "R-ID or Single -Family Residential Downtown Zone", or "HR or Hillside Residential Zone" as specified in Article IV, "Residential Zones," of the Zoning Code. Subdivision Code means Chapter 24 of the Los Gatos Town Code. Sufficient forseparate conveyance means that each attached or adjacent dwelling unit is constructed in a manner adequate to allow for the separate sale of each unit in a common interest development as defined in Civil Code Section 1351 (including a residential condominium, planned development, stock cooperative, or community apartment project), or into any other ownership type in which the dwelling units may be sold individually. Urban lot split means a ministerial application for a parcel map to subdivide an existing parcel located within a single-family residential zone into two parcels, as authorized by Government Code Section 66411.7. Zoning Code means Chapter 29 of the Los Gatos Town Code. SECTION III. Section 29.10.620, "Eligibility," of Division 10., "Two -Unit Housing Development and Urban Lot Splits," of Chapter 29, "Zoning Regulations," is amended to read as follows: An urban lot split or a two -unit housing development may only be created on parcels satisfying all of the following general requirements: (1) Zoning District. A parcel that is located within a single-family residential zone. (2) Legal Parcel. A parcel which has been legally created in compliance with the Subdivision Map Act (Government Code Section 66410 et seq.) and the Town's 4of18 Ordinance 2359 May 21, 2024 Subdivision Regulations in effect at the time the parcel was created. Applications for an urban lot split or two -unit housing development will only be accepted on parcels with either a recorded parcel map or certificate of compliance. When both an urban lot split and two -unit housing development application are submitted simultaneously, no construction or building permits for new construction or grading activities may be issued until the new parcel map for the urban lot split approval has been recorded. (3) Excluding Historic Property. A parcel that is not located within a historic district or property included on the State Historic Resources Inventory, as defined in Section 5020.1 of the Public Resources Code, or a parcel that does not contain a Historic Structure, as defined in Town Code Section 29.10.020, or is not listed on the Town of Los Gatos Historic Resource Inventory, as defined by Town Code Chapter 29, Article VII, Division 3, "Historic Preservation and LHP or Landmark and Historic Preservation Overlay Zone." (4) Excluding Very High Fire Hazard Severity Zone. A parcel that is not within a very high fire hazard severity zone, as determined by the Department of Forestry and Fire Protection pursuant to Government Code Section 51178, or within a state responsibility area, as defined in Section 4102 of the Public Resources Code. This subparagraph does not apply to sites that have adopted fire hazard mitigation measures pursuant to existing building standards or state fire mitigation measures applicable to the development, including, but not limited to, standards established under all of the following or their successor provisions: (i) Section 4291 of the Public Resources Code or Section 51182, as applicable; (ii) Section 4290 of the Public Resources Code; and (iii) Section 7A of the California Building Code (Title 24 of the California Code of Regulations). (5) Excluding Hazardous Waste Sites. A parcel that is not identified as a hazardous waste site pursuant to Government Code Section 65962.5 or a hazardous waste site designated by the Department of Toxic Substances Control pursuant to Health and Safety Code Section 25356, unless the State Department of Public Health, State Water Resources Control Board, or Department of Toxic Substances Control has cleared the site for residential use. (6) Excluding Earthquake Fault Zone. A parcel that is not located within a delineated earthquake fault zone as determined by the State Geologist on any official maps published by the State Geologist, unless the two -unit housing development complies with applicable seismic protection building code standards adopted by the California Building Standards Commission under the California Building Standards Law (Part 2.5 (commencing with Section 18901) of Health and Safety Code Division 13), and by any local building department under Chapter 12.2 (commencing with Section 8875) of Division 1 of Title 2. (7) Excluding Flood Zone. A parcel that is not located within a special flood hazard area subject to inundation by the 1 percent annual chance flood (100-year flood) on the official maps published by the Federal Emergency Management Agency unless a Letter of Map Revision prepared by the Federal Emergency Management Agency has 5ofIs Ordinance 2359 May 21, 2024 been issued or if the proposed two -unit housing development is constructed in compliance with the provisions of Town Code Chapter 29, Article XI, "Floodplain Management," as determined by the floodplain administrator. (8) Excluding Natural Habitat. A parcel that is not recognized by the Town as a habitat for protected species identified as a candidate, sensitive, or species of special status by State or Federal agencies, fully protected species, or species protected by the Federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.), the California Endangered Species Act (Chapter 1.5 (commencing with Section 2050) of Division 3 of the Fish and Game Code), or the Native Plant Protection Act (Chapter 10 (commencing with Section 1900) of Division 2 of the Fish and Game Code). (9) Excluding Prime Farmland and Wetlands. A parcel that contains either prime farmland or farmland of statewide importance, as defined pursuant to the United States Department of Agriculture land inventory and monitoring criteria, as modified for California, and designated on the maps prepared by the Farmland Mapping and Monitoring Program of the Department of Conservation, or land zoned or designated for agricultural protection or preservation by a local ballot measure that was approved by the voters of that jurisdiction; or wetlands, as defined in the United States Fish and Wildlife Service Manual, Part 660 FW 2 (June 21, 1993). (10) Excluding Conservation Easements. A parcel subject to a recorded conservation easement. SECTION IV. Section 29.10.630, "Requirements," of Division 10., "Two -Unit Housing Development and Urban Lot Splits," of Chapter 29, "Zoning Regulations," is amended to read as follows: Two -unit housing developments must comply with the following objective zoning standards, design review standards, and general requirements and restrictions: (1) Zoning Standards. The following objective zoning standards supersede any other standards to the contrary that may be provided elsewhere in the Zoning Code, as they pertain to a two -unit housing development under Government Code Section 65852.21. Two -unit housing developments shall be constructed only in accordance with the following objective zoning standards, except as provided by subsection (4), "Exceptions:" a. Building Height. Maximum building height shall be as specified by the applicable zoning district for the main structure. Buildings located within the required side or rear setbacks of the applicable zoning district, and those located in the Hillside Residential (HR) zones, shall not exceed 16 feet in height; b. New Driveways. Each parcel shall include no more than a single driveway unless the parcel has more than 100 feet of contiguous street frontage or more than one existing driveway. Any new driveway shall satisfy the following requirements: 6of18 Ordinance 2359 May 21, 2024 1. A minimum width of 10 feet up to a maximum width of 18 feet. Driveways in the Hillside Residential (HR) zones shall have a minimum width of 12 feet; 2. A minimum depth of 18 feet measured from the front or street side property line; 3. Surfacing shall comply with Town Code Section 29.10.155(e); 4. Only a single driveway curb -cut shall be permitted per parcel unless the parcel has more than 100 feet of contiguous street frontage, designed in accordance with the Town's Standard Specifications and Plans for Parks and Public Works Construction; and 5. A maximum slope of 15 percent. C. Dwelling Unit Type. The primary dwelling units comprising a two -unit housing development may take the form of detached single-family dwellings, attached units, and/or duplexes. A duplex may consist of two dwelling units in a side -by - side or front -to -back configuration within the same structure or one dwelling unit located atop another dwelling unit within the same structure; d. Fencing. All new fencing shall comply with the requirements of Sections 29.40.030 through 29.40.0325 of the Zoning Code; e. Floor Area Ratio and Lot Coverage. 1. The maximum floor area ratio and lot coverage shall be as specified by the applicable zoning regulations. 2. For flag/corridor lots, the gross lot size includes the access corridor for the purposes of determining maximum floor area ratio and lot coverage as follows: i. When an easement is used to provide access, the access corridor is included in the gross lot size for the lot granting the easement; and ii. When the access corridor is owned in -fee and is part of the rear lot, the access corridor is included in the gross lot size for the rear lot. 3. The maximum size of the first new residential unit shall not exceed 1,200 square feet. 4. When a two -unit housing development is proposed and the existing structures are at or below the maximum allowed floor area, a 10 percent increase in the floor area ratio standards for residential structures is allowed, excluding garages, and this increase in floor area cannot be combined with a separate increase for an Accessory Dwelling Unit allowed by Town Code Section 29.10.320. The additional floor area allowed by this subsection shall not exceed 1,200 square feet. 7of18 Ordinance 2359 May 21, 2024 5. Notwithstanding the floor area ratio and lot coverage standards in this subsection, a new two -unit housing development with unit sizes of 800 square feet or less shall be permitted. Grading. 1. To the extent required by Chapter 12, Article II and Section 29.10.09045(b) of the Town Code, the grading activities set forth in subsection 2. below may require a Grading Permit, but will not require discretionary review of an Architecture and Site Application; 2. Grading activity associated with a two -unit housing development shall not exceed 50 cubic yards, cut plus fill, except: i. Light wells that do not exceed the minimum required per Building Code shall not count as grading activity for the purpose of this section; ii. Grading activities required to provide the minimum driveway and fire access as required by the Santa Clara County Fire Department shall not count as grading activity for the purpose of this section; and iii. Excavation within the footprint of a primary dwelling unit or garage shall not count as grading activity for the purpose of this section. g. Cut and Fill. Two -unit housing developments shall be subject to the cut and fill requirements specified by Table 1-1 (Cut and Fill Requirements) below: Table 1-1- Cut and Fill Requirements Site Element Cut * Fill House and attached garage 8' ** 3' Detached accessory building * 4' 3' Driveways *** 4' 3' Other (decks, yards) * 4' 3' * Combined depths of cut plus fill for development other than the main residence shall be limited to 6 feet. ** Excludes below grade square footage pursuant to Section 29.40.072 of the Town Code and light -wells that do not exceed the minimum required per Building Code. *** Excludes cut and fill for the minimum driveway and fire access standards as required by the Santa Clara County Fire Department. h. Building Sites. The footprint of the proposed residential unit(s) and garage(s) shall not be located on lands with slopes exceeding 30 percent. This provision applies only to the building site, not the property as a whole; i. Retaining Walls. Retaining walls shall not exceed five feet in height and shall not run in a straight continuous direction for more than 50 feet without a 8of18 Ordinance 2359 May 21, 2024 break, offset, or planting pocket. Retaining walls shall have a five-foot landscaped buffer when adjacent to the street; j. Light Reflectivity Value. Exterior material colors for primary dwelling units and garages in the Hillside Residential (HR) zones shall comply with requirements in Chapter V, Section I, of the Town's Hillside Development Standards and Guidelines; k. Landscaping Requirement. All landscaping shall comply with the California Model Water Efficient Landscape Ordinance (MWELO); I. Lighting. New exterior lighting fixtures shall be downward directed and utilize shields so that no bulb is visible to ensure that the light is directed to the ground surface and does not spill light onto neighboring parcels consistent with Section 29.10.09015 of the Zoning Code; m. Trees. Any proposed work shall comply with the protection, removal, and replacement requirements for protected trees in Chapter 29, Article 1, Division 2, "Tree Protection," of Town Code; n. Minimum Living Area. The minimum living area of a primary dwelling unit shall be 150 square feet, subject to the restrictions specified by Health and Safety Code Section 17958.1; o. Parking. 1. One parking stall per primary dwelling unit shall be required, except for two -unit housing developments located on parcels within one-half mile walking distance of public transportation; or where there is a designated parking area for one or more car -share vehicles within one block of the parcel. 2. Parking stalls may either be uncovered or covered (garage or carport) in compliance with applicable developments standards of the Zoning Code, including Chapter 29, Article I, Division 4, "Parking," except that uncovered parking spaces may be provided in a front or side setback abutting a street on a driveway (provided that it is feasible based on specific site or fire and life safety conditions) or through tandem parking. p. Setbacks. Two -unit housing developments and attached garages shall be subject to the setback and building separation requirements specified by Table 1-2 (Setback Requirements), below. Detached garages and detached accessory structures shall meet the setback requirements specified in Town Code Section 29.40.015 (Accessory Buildings). Table 1-2 - Setback Requirements Setback Requirement�2) Property Line Setbacks(') Front Per the applicable zoning district.(') Garage Entry 18 feet Interior Sides 4 feet") 9of18 Ordinance 23S9 May 21, 2024 Rear Street Side Separation Between Detached Structures(3)(4) Per the applicable zoning district. 5 feet Exceptions: (1) Cornices, eaves, belt courses, sills, canopies, bay windows, chimneys, or other similar architectural features may extend into required setbacks as specified Section 29.40.070(b) of the Zoning Code. (2) No setback shall be required for an existing structure, or a structure constructed in the same location and to the same dimensions as an existing structure. (3) For parcels created through an urban lot split where the parcels are under the same ownership, no interior side setback shall be required for two -unit housing development units constructed as attached units on separate lots, provided that the structures meet building code safety standards and are sufficient to allow separate conveyance as a separate fee parcel. Similarly, no rear setback (for the front property) or front setback (for the rear property) shall be required for two -unit housing development units constructed as attached units in a flag -lot configuration where the parcels are under the same ownership. (4) Except for primary dwellings constructed as a duplex or attached single-family residences. (5) Flag/corridor lots shall use the interior side setback requirements for all property lines other than the rear. Stormwater Management. The development shall comply with the requirements of the Town's National Pollution Discharge Elimination System Permit as implemented by Chapter 22 of the Town Code, and as demonstrated by a grading and drainage plan prepared by a registered civil engineer; and Utilities. New units shall be designed as individual units, with separate gas, electric, and water utility connections directly between each dwelling unit and the utility. (2) Design Review Standards. The following objective design review standards apply to construction of new primary dwelling units and to any addition and/or alteration to existing primary dwelling units as part of a two -unit housing development, except as provided by subsection (4) below, "Exceptions:" a. Balconies/Decks. Rooftop and second floor terraces and decks are prohibited. Balconies shall only be permitted on the front- and street -side elevations of a primary dwelling unit fronting a public street. Such balconies shall be without any projections beyond the building footprint; b. Finished Floor. The finished floor of the first story shall not exceed three feet in height as measured from finished grade; C. Front Entryway. A front entryway framing a front door shall have a roof eave that matches or connects at the level of the adjacent eave line; d. Front Porch. If proposed, porches shall have a minimum depth of six feet and a minimum width equal to 25 percent of the linear width of the front elevation; 10 of 18 Ordinance 2359 May 21, 2024 e. Second Story Setback. The interior side and rear elevations of the second story of a two-story primary dwelling unit shall have a minimum setback of nine feet; f. Garages. Street -facing attached garages shall not exceed 50 percent of the linear width of the front -yard or street -side yard elevation; g. Plate Height. The plate height of each story shall be limited to a maximum of 10 feet as measured from finished floor, and when above the first floor the plate height shall be limited to a maximum of eight feet; and h. Windows. All second story windows less than 10 feet from rear and interior side property lines shall be clerestory with the bottom of the glass at least six feet above the finished floor except as necessary for egress purposes as required by the Building Code. I. Prohibited Materials. The following exterior materials are prohibited on all building exteriors: 1. Vinyl siding; and 2. Plywood. j. Mechanical Equipment. Heating, ventilation, and air conditioning (HVAC) units, generators, energy storage systems (ESS), and other similar ground -mounted mechanical equipment shall be screened from view from any adjacent street if not already located out of view behind a building or solid fence. (3) General Requirements and Restrictions. The following requirements and restrictions apply to all two -unit housing developments, inclusive of existing and new primary dwelling units, except as provided by subsection (4) below, "Exceptions:" a. Number of Units. A maximum of four units, with a maximum of two primary dwelling units, on lots that have not undergone an urban lot split. b. Accessory Dwelling Units. In addition to the two residential units allowed under this section, consistent with Chapter 29, Article 1, Division 7, "Accessory Dwelling Units," of the Town Code, one accessory dwelling unit and one junior accessory dwelling unit shall be allowed on lots that have not undergone an urban lot split. C. Building and Fire Codes. The International Building Code ("Building Code"), and the California Fire Code and International Fire Code (together, "Fire Code"), as adopted by Chapter 6 of the Town Code, respectively, apply to all two -unit housing developments. d. Encroachment Permits. Separate encroachment permits, issued by the Parks and Public Works Department, shall be required for the installation of utilities to serve two -unit housing developments. Applicants shall apply for and pay all necessary fees for utility permits for sanitary sewer, gas, water, electric, and all other utility work. 11 of 18 Ordinance 7359 May 21, 2024 e. Restrictions on Demolition. The two -unit housing development shall not require either demolition of more than 25 percent of the exterior walls or alteration of any of the following types of housing: 1. Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. This shall be evidenced by an attestation from the property owner; 2. Housing that is subject to any form of rent or price control through a public entity's valid exercise of its police power. This shall be evidenced by an attestation from the property owner; or 3. Housing that has been occupied by a tenant in the last three years. This shall be evidenced by an attestation from the property owner. If any existing housing is proposed to be altered or demolished, the owner of the property proposed for a two -unit housing development shall sign an affidavit, stating that none of the conditions listed above exist and shall provide a comprehensive history of the occupancy of the units to be altered or demolished for the past three years on a form prescribed by the Town. If any existing dwelling unit is proposed to be demolished, the applicant shall comply with the replacement housing provisions of Government Code Section 66300(d). f. Recorded Covenant. Prior to building permit issuance, the applicant shall record a restrictive covenant in the form prescribed by the Town, which shall run with the land and provide for the following: 1. A limitation restricting the property to residential uses only; and 2. A requirement that any dwelling units on the property may only be rented for a period longer than thirty (30) days. (4) Exceptions. If any of the provided zoning standards or design review standards would have the effect of physically precluding construction of up to two (2) primary dwelling units or physically preclude either of the two (2) primary dwelling units from being at least eight hundred (800) square feet in floor area, the Community Development Director shall grant an exception to the applicable standard(s) to the minimum extent necessary as specified by this section. An exception request shall be explicitly made on the application for a two -unit housing development. a. Determination. In order to retain adequate open space to allow for recreational enjoyment, protection of the urban forest, preservation of the community character, reduction of the ambient air temperature, and to allow for the percolation of rainfall into the groundwater system, when considering an exception request, the Community Development Director shall first determine that a reduction in any other zoning and/or design review standard(s) will not allow the construction of the two -unit housing 12 of 18 Ordinance 2359 May 21, 2024 development as specified by this section prior to allowing an exception(s) to the landscaping requirement, front -yard setback, or street -side setbacks standards. SECTION V. Section 29.10.640, "Application Process for Two -Unit Housing Development," of Division 10., "Two -Unit Housing Development and Urban Lot Splits," of Chapter 29, "Zoning Regulations," is amended to read as follows: Applications for two -unit housing developments shall be submitted and processed in compliance with the following requirements: (1) Application Type. Two -unit housing developments shall be reviewed ministerially by the Community Development Director for compliance with the applicable regulations. The permitting provisions of Town Code Sections 29.20.135 through 29.20.160, "Architecture and Site Approval," shall not be applied; (2) Application Filing. An application for a two -unit housing development, including the required application materials and fees, shall be filed with the Community Development Department; (3) Neighbor Notification. In addition to the standard application materials, the applicant will be required to submit one (1) set of stamped, addressed envelopes to neighboring residents and property owners. The Planning Department will assist the applicant in determining the neighboring properties to be notified (which will consist of all properties abutting the applicant's parcel, properties directly across the street and the two (2) parcels on each side of the properties directly across the street). (4) Building Permits. Approval of a two -unit housing development application shall be required prior to acceptance of an application for building permit(s) for the new and/or modified primary dwelling unit(s) comprising the two -unit housing development; (5) Denial. The Community Development Director may deny a two -unit housing development project only if the Building Official makes a written finding, based upon a preponderance of the evidence, that the two -unit housing development would have a specific, adverse impact, as defined and determined in paragraph (2) of subdivision (d) of Government Code Section 65589.5, upon public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact; and (6) Appeals. Two -unit housing application decisions are ministerial and are not subject to an appeal. SECTION VI. Section 29.10.650, "Subdivision Standards," of Division 10., "Two -Unit Housing Development and Urban Lot Splits," of Chapter 29, "Zoning Regulations," is amended to read as follows: 13 of 18 Ordinance 2359 May 21, 2024 Urban lot splits shall comply with the following objective subdivision standards, and general requirements and restrictions: (1) Subdivision Standards. The following objective subdivision standards supersede any other standards to the contrary that may be provided in the Zoning Code or Subdivision Code, as they pertain to creation of an urban lot split under Government Code Section 66411.7: a. Flag/Corridor Lots. The access corridor of a flag/corridor lot (Town Code Section 29.10.085) shall be either in fee as part of the parcel or as an easement, and shall be a minimum width of 12 feet; b. Minimum Lot Size. Each new parcel shall be approximately equal in lot area provided that one (1) parcel shall not be smaller than forty (40) percent of the lot area of the original parcel proposed for subdivision. In no event shall a new parcel be less than 1,200 square feet in lot area. If one (1) of the proposed lots is a flag/corridor lot, the area of the access corridor shall count toward the lot area as follows: 1. When an easement is used to provide access, the access corridor is included in the gross lot size for the lot granting the easement; and 2. When the access corridor is owned in -fee and is part of the rear lot, the access corridor is included in the gross lot size for the rear lot. C. Minimum Lot Width. Each new parcel shall maintain a minimum lot width of twenty (20) feet; d. Minimum Public Frontage. Each new parcel shall have frontage upon a street with a minimum frontage dimension of twenty (20) feet, except as allowed above for flag/corridor lots; e. Number of Lots. The parcel map to subdivide an existing parcel shall result in no more than two (2) parcels; and f. Lot Merger. Lots resulting from an urban lot split shall not be merged unless that lot merger can be done without loss of housing units and without causing a non -conforming building, lot, or use. (2) General Requirements and Restrictions. The following requirements and restrictions apply to all proposed urban lot splits: a. Adjacent Parcels. Neither the owner of the parcel being subdivided nor any person acting in concert with the owner has previously conducted an urban lot split to create an adjacent parcel as provided for in this Division; b. Dedication and Easements. The Town Engineer shall not require dedications of rights -of -way nor the construction of offsite improvements but may, however, require recording of easements necessary for the provision of private services, facilities, and future public improvements or future public services, facilities, and future public improvements; 14 of 18 Ordinance 2359 May 21, 2024 C. Existing Structures. Existing structures located on a parcel subject to an urban lot split shall not be subject to a setback requirement. However, any such existing structures shall not be located across the shared property line resulting from an urban lot split, unless the structure is converted to an attached unit as provided for in Table 1-2 (Setback Requirements, Exception Number 3). All other existing structures shall be modified, demolished, or relocated prior to recordation of a parcel map; d. Intent to Occupy. The applicant shall submit a signed affidavit to the Community Development Director attesting that the applicant intends to occupy one (1) of the housing units on the newly created parcels as their principal residence for a minimum of three (3) years from either: 1. The date of the approval of the urban lot split when the intent is to live in an existing residence; or 2. Certificate of occupancy when the intent is to occupy a newly constructed residential unit. This requirement shall not apply to an applicant that is a "community land trust," as defined in clause (ii) of subparagraph (C) of paragraph (11) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code, or a "qualified nonprofit corporation" as described in Section 214.15 of the Revenue and Taxation Code; e. Non -Conforming Conditions. The Town shall not require, as a condition of approval, the correction of nonconforming zoning conditions. However, no new nonconforming conditions may result from the urban lot split other than setbacks as specified by Table 1-2 (Setback Requirements, Exception Number 2), maximum allowed lot coverage, and maximum allowed floor area ratio; f. Number of Units. No more than two (2) dwelling units may be located on any lot created through an urban lot split, including primary dwelling units, accessory dwelling units, junior accessory dwelling units, density bonus units, and units created as two -unit developments. Any excess dwelling units that do not meet these requirements shall be relocated, demolished, or otherwise removed prior to approval of a parcel map; g. Prior Subdivision. A parcel created through a prior urban lot split may not be further subdivided. The subdivider shall submit a signed deed restriction to the Community Development Director documenting this restriction. The deed restriction shall be recorded on the title of each parcel concurrent with recordation of the parcel map; h. Restrictions on Demolition. The proposed urban lot split shall not require either the demolition of more than twenty-five (25) percent of the exterior walls or alteration of any of the following types of housing: 1. Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, 15 of 18 Ordinance 2359 May 21, 2024 low, or very low income. This shall be evidenced by an attestation from the property owner; Housing that is subject to any form of rent or price control through a public entity's valid exercise of its police power. This shall be evidenced by an attestation from the property owner; or 3. Housing that has been occupied by a tenant in the last three (3) years. This shall be evidenced by an attestation from the property owner; If any existing housing is proposed to be altered or demolished, the owner of the property proposed for an urban lot split shall sign an affidavit, stating that none of the conditions listed above exist and shall provide a comprehensive history of the occupancy of the units to be altered or demolished for the past three (3) years on a form prescribed by the Town. The owner and applicant shall also sign an affidavit stating that neither the owner nor applicant, nor any person acting in concert with the owner or applicant, has previously subdivided an adjacent parcel using and urban lot split; Replacement Units. If any existing dwelling unit is proposed to be demolished, the applicant will comply with the replacement housing provisions of Government Code Section 66300(d); j. Recorded Covenant. Prior to approval and recordation of the parcel map, the applicant shall record a restrictive covenant and agreement in the form prescribed by the Town, which shall run with the land and provide for the following: 1. A prohibition against further subdivision of the parcel using the urban lot split procedures as provided for in this section; 2. A limitation restricting the properties to residential uses only; and 3. A requirement that any dwelling units on the property may only be rented for a period longer than thirty (30) days. k. Stormwater Management. The subdivision shall comply with the requirements of the Town's National Pollution Discharge Elimination System Permit as implemented by Chapter 22 of the Town Code, and as demonstrated by a grading and drainage plan prepared by a registered civil engineer; I. Utility Providers. The requirements of the parcel's utility providers shall be satisfied prior to recordation of a parcel map; and m. Compliance with Subdivision Map Act. The urban lot split shall conform to all applicable objective requirements of the Subdivision Map Act (commencing with Government Code Section 66410), except as otherwise expressly provided in Government Code Section 66411.7. SECTION VII. Section 29.10.660, "Application Process for Urban Lot Splits," of Division 10., 16 of 18 Ordinance 2359 May 21, 2024 "Two -Unit Housing Development and Urban Lot Splits," of Chapter 29, "Zoning Regulations," is amended to read as follows: Applications for urban lot splits shall be submitted and processed in compliance with the following requirements: (1) Application Type. Urban lot splits shall be reviewed ministerially by the Community Development Director for compliance with the applicable regulations. A tentative parcel map shall not be required; (2) Application Filing. An urban lot split application, including the required application materials and fees, shall be filed with the Community Development Department; (3) Neighbor Notification. In addition to the standard application materials, the applicant will be required to submit one (1) set of stamped, addressed envelopes to neighboring residents and property owners. The Planning Department will assist the applicant in determining the neighboring properties to be notified (which will consist of all properties abutting the applicant's parcel, properties directly across the street and the two (2) parcels on each side of the properties directly across the street). (4) Parcel Map. Approval of an urban lot split permit shall be required prior to acceptance of an application for a parcel map for an urban lot split. Applicants shall apply for an Urban Lot Split Parcel Map and pay all fees; (5) Development. Development on the resulting parcels is limited to a project approved by the two -unit housing development process, the Town's Accessory Dwelling Unit process, or through the Town's standard discretionary process; (6) Denial. The Community Development Director may deny an urban lot split only if the Building Official makes a written finding, based upon a preponderance of the evidence, that an urban lot split or two -unit housing development located on the proposed new parcels would have a specific, adverse impact, as defined and determined in paragraph (2) of subdivision (d) of Section 65589.5, upon public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact; and (7) Appeals. Urban lot split application decisions are ministerial and are not subject to an appeal. SECTION VIII. Severability. In the event that a court of competent jurisdiction holds any Section, subsection, paragraph, sentence, clause, or phrase in this Ordinance unconstitutional, preempted, or otherwise invalid, the invalid portion shall be severed from this Section and shall not affect the validity of the remaining portions of this Section. The Town hereby declares that it would have adopted each Section, subsection, paragraph, sentence, clause, or phrase in this Section irrespective of the fact that any one or more Sections, subsections, paragraphs, sentences, clauses or phrases in this Section might be declared unconstitutional, preempted, or otherwise invalid. 17 of 18 Ordinance 2359 May 21, 2024 SECTION IX. CEQA. Adopting this Ordinance is not a project subject to CEQA because it can be seen with certainty that it will not impact the environment (CEQA Guidelines Section 15378). Additionally, in accordance with Government Code Section 66411.7(n) and 66452.21(g), Senate Bill 9 Ordinances are not a project subject to the California Environmental Quality Act. SECTION X. Consistency with General Plan. The amendments to the Town Code are consistent with the General Plan as SB 9 is a state law; and SECTION XI. Publication. In accordance with Section 63937 of the Government Code of the State of California, this Ordinance takes effect 30 days from the date of its passage. The Town Council hereby directs the Town Clerk to cause this Ordinance or a summary thereof to be published or posted in accordance with Section 36933 pf the Government Code of the State of California. SECTION XII. Effective Date. This Ordinance was introduced at a regular meeting of the Town Council of the Town of Los Gatos on the 7th day of May 2024, and adopted by the Town Council of the Town of Los Gatos at its regular meeting on the 21s` day of May 2024, by the following vote: COUNCIL MEMBERS: Maria Ristow, Rob Rennie, Rob Moore, Matthew Hudes, Mayor Mary Badame AYES: NAYS: ABSENT: ABSTAIN None None None SIGNED: ATOS MO OR THE TOWN OF LOS G LATOS, CALIFORNIA DATE: ATTEST: • TOWN CLERK THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA DATE: 18 of 18 Ordinance 2359 May 21, 2024