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Staff Report PREPARED BY: ERIN WALTERS Associate Planner Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Community Development Department Director, and 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: 09/05/2017 ITEM NO: 14 DATE: AUGUST 30, 2017 TO: MAYOR AND TOWN COUNCIL FROM: LAUREL PREVETTI, TOWN MANAGER SUBJECT: TOWN CODE AMENDMENT APPLICATION A-17-001. CONSIDER AMENDMENTS TO CHAPTER 29 (ZONING REGULATIONS) OF THE TOWN CODE REGARDING CELLARS. PROJECT LOCATION: TOWN WIDE. APPLICANT: TOWN OF LOS GATOS. RECOMMENDATION: Approve the Planning Commission’s recommendation to adopt a resolution (Attachment 8) to rescind Cellar Policy Resolution 2002-167 (Resolution of the Town Council of the Town of Los Gatos Adopting Cellar Policies) and to introduce the proposed Ordinance by title only to amend Chapter 29 (Zoning Regulations) of the Town Code regarding cellars (Attachment 9). BACKGROUND: In October of 2002, Town Council adopted the Cellar Policy (Attachment 1, Exhibit 9). The General Plan encourages the use of basements and cellars to provide “hidden” square footage in-lieu of visible mass (Policy CD-6.3). The Cellar Policy was intended to help provide clear direction to developers and homeowners processing development applications and to help reduce the bulk, mass, and scale of new and remodeled homes. The Town currently has two sources that define and regulate basements and cellars, Chapter 29 of the Town Code and the Cellar Policy. PAGE 2 OF 9 SUBJECT: CONSIDER AMENDMENTS TO THE TOWN CODE REGARDING CELLARS. TOWN CODE AMENDMENT/A-17-001 AUGUST 30, 2017 S:\COUNCIL REPORTS\2017\09-05-17\Cellar Policy\Staff Report - Cellar Policy Final.docx 8/31/2017 3:06 PM BACKGROUND (Continued): Town Council Policy Committee Beginning in June of 2016, the Policy Committee considered and discussed rescinding the Cellar Policy and amending Chapter 29 of the Town Code to simplify and clarify how below grade square footage is defined and applied to projects. On July 14, 2016, the Policy Committee further discussed the Cellar Policy and basement definition, and provided the following direction:  Eliminate the definition of cellar and basement from the Town Code;  Add language to the Floor Area Ratio (FAR) section in the Town Code and Hillside Development Standards and Guidelines (HDS&G) related to areas below grade; and  Add language to the FAR section in the Town Code and HDS&G stating that if a house has any elevation that is more than four feet above grade th en the entire area of that level will be counted as FAR. Exhibit 3 of Attachment 1 contains the Policy Committee report and Exhibit 4 of Attachment 1 contains the Policy Committee minutes for the July 14, 2016 meeting. On December 15, 2016, the Policy Committee reviewed the revised draft Town Code language to address below grade square footage. Exhibit 5 of Attachment 1 contains the Policy Committee report for this meeting. The Policy Committee directed staff to proceed to the Town Council to rescind the Cellar Policy and to the Planning Commission for consideration of the necessary revisions to the Town Code and other policy documents. Exhibit 6 of Attachment 1 contains the Policy Committee minutes for the December 15, 2016 meeting. On January 19, 2017, the Policy Committee reviewed and discussed light and exit well standards relating to below grade square footage. Exhibit 7 of Attachment 1 contains the Policy Committee report for this meeting. The Committee members requested that the light and exit well standards be added to the setback sections in various zones. Exhibit 8 of Attachment 1 contains the Policy Committee minutes for the January 19, 2017 meeting. At the January 31, 2017 priority setting session, the Town Council prioritized updating the cellar/basement policy as a 2017-2019 Town Council Strategic Priority, which became part of the Community Development Department work plan. PAGE 3 OF 9 SUBJECT: CONSIDER AMENDMENTS TO THE TOWN CODE REGARDING CELLARS. TOWN CODE AMENDMENT/A-17-001 AUGUST 30, 2017 S:\COUNCIL REPORTS\2017\09-05-17\Cellar Policy\Staff Report - Cellar Policy Final.docx 8/31/2017 3:06 PM DISCUSSION: A. Planning Commission Per the direction of the Policy Committee, the Planning Commission considered amendments to Chapter 29 (Zoning Regulations) of the Town Code regarding cellars on May 24, 2017 which included the following: 1. Amendments to Chapter 29 (Zoning Ordinance) of the Town Code pertaining to cellars: a. Delete the definitions of basement and cellar; b. Amend the definition of gross floor area (including, “If at any point on any elevation there is more than four feet above proposed grade then the entire floor counts as gross floor area”); and c. Add a section with additional criteria for reviewing below grade square footage, which had been previously included in the Cellar Policy: i. Light and exit well size and location; ii. Below grade patios; and iii. Location of below grade square footage. 2. Rescind the Cellar Policy; and 3. Revise additional Town documents for consistency. At the May 24, 2017 Planning Commission hearing, members of the public and members of the local design professionals’ community provided public testimony (see Verbatim Minutes, Attachment 3). Concerns were raised by local design professionals regarding the proposed amendment to the gross floor area definition, specifically the added language, “If at any point on any elevation there is more than four feet above proposed grade then the entire floor counts as gross floor area.” Concerns were expressed that this specific language would discourage rather than encourage the use of basements and cellars to provide “hidden” square footage in-lieu of visible mass. The Planning Commission continued the item to the June 28, 2017 Planning Commission meeting. The Planning Commission provided direction to staff to reach out to architecture and real estate professionals to request input and specific recommendations on: how to achieve the Town’s goal of reducing the bulk and mass of residential buildings, and the proposed draft Code amendments. B. Public Outreach Staff reached out to the following organizations and requested input on the proposed Town Code amendments regarding cellars: PAGE 4 OF 9 SUBJECT: CONSIDER AMENDMENTS TO THE TOWN CODE REGARDING CELLARS. TOWN CODE AMENDMENT/A-17-001 AUGUST 30, 2017 S:\COUNCIL REPORTS\2017\09-05-17\Cellar Policy\Staff Report - Cellar Policy Final.docx 8/31/2017 3:06 PM DISCUSSION (Continued):  Santa Clara Valley Chapter of the American Institute of Architects (AIASCV)  Santa Clara County Association of Realtors (SCCAR)  Silicon Valley Association of Realtors (SILVAR) Planning staff was invited to present the proposed amendments regarding cellars at the June 14, 2017 Silicon Valley Association of Realtors Los Gatos/Saratoga District Tour meeting. Staff presented the proposed changes to approximately thirty real estate professionals. In addition to reaching out to professional organizations , staff requested public input through the following media and social media resources.  A half-page public notice in the newspaper;  A poster posted at the Planning counter at Town Hall;  On the Town’s website home page, What’s New?;  On the Town’s Facebook page;  On the Town’s Twitter account;  On the Town’s Instagram account; and  On the Town’s NextDoor page. Staff also reached out to approximately twenty different local architects, developers, and interested parties for public input and specific recommendations. Staff discussed the proposed cellar modifications with approximately ten different members of the public and design community. C. Planning Commission Recommendation On June 28, 2016, the Planning Commission considered the results from the public outreach and further public testimony regarding the proposed changes regarding cellars (see Staff Report, Attachment 4 and Verbatim Minutes Attachment 6). Public input received at both Planning Commission meetings and the public outreach included a common response to not modify the Town’s existing method of counting below grade square footage (countable floor area). Currently one floor can have both countable floor area (basement) and non-countable floor area (cellar). The proposed regulations would have required that at any point on any elevation if there is more than four feet above the proposed grade then the entire floor area counts as gross floor area. An example of this condition is when a portion of the cellar daylights more than four feet above proposed PAGE 5 OF 9 SUBJECT: CONSIDER AMENDMENTS TO THE TOWN CODE REGARDING CELLARS. TOWN CODE AMENDMENT/A-17-001 AUGUST 30, 2017 S:\COUNCIL REPORTS\2017\09-05-17\Cellar Policy\Staff Report - Cellar Policy Final.docx 8/31/2017 3:06 PM DISCUSSION (Continued): grade, on a sloped lot. Attachment 7 illustrates the Policy Committee’s recommendation and the Planning Commission’s recommendation. After full consideration of the proposed amendments, the Planning Commission recommended that the Town Council rescind the Cellar Policy (Attachment 8) and approve the amendments to the Town Code (Chapters 29) pertaining to cellars with modification s (Attachment 9). The Planning Commission’s recommended modifications to the Town Council Policy Committee’s recommendation are included below and in Attachment 9. D. Planning Commission’s Recommended Modification to the Town Code The Policy Committee’s proposed amendments to the Town Code are shown below as underlined and a strike through. The Planning Commission’s modifications to the Policy Committee’s amendments are shown below in bold. 1. The proposed amendments (Attachment 9) would require the elimination of the Cellar Policy and the basement and cellar definitions: Sec. 29.10.020. - Definitions. ….. Basement means an enclosed area that extends more than four (4) feet above the existing or finished grade in any location. Basements, as defined here, shall be included in the floor area ratio calculation. For purposes of this definition, whichever grade (existing or proposed) results in the lowest building profile of a building shall be used. ….. Cellar means an enclosed area that does not extend more than four (4) feet above the existing or finished grade in any location. Cellars, as defined here, shall not be included in the floor area ratio calculation for residential developments. That area of a cellar where the building height exceeds four (4) feet above existing or finished grade shall not be included in this definition and shall be included in the floor ar ea ratio calculation. For purposes of this definition whichever grade (existing or proposed) results in the lowest building profile of a building shall be used. ….. PAGE 6 OF 9 SUBJECT: CONSIDER AMENDMENTS TO THE TOWN CODE REGARDING CELLARS. TOWN CODE AMENDMENT/A-17-001 AUGUST 30, 2017 S:\COUNCIL REPORTS\2017\09-05-17\Cellar Policy\Staff Report - Cellar Policy Final.docx 8/31/2017 3:06 PM DISCUSSION (Continued): 2. The proposed amendments would amend the definition of gross floor area: Section 29.10.020-Definitions. ….. Floor Area, gross means the entire enclosed area of all floors that are more than four feet above the proposed grade at any point on the elevation, including basements and cellars, measured from the outer face of exterior walls or in the case of party walls from the centerline. If at any point on any elevation there is more than four feet above proposed grade then that entire floor counts as gross floor area. Gross floor area also includes any part of exterior balconies or walkways above the ground floor required for ingress and egress. Ornamental balconies and outside unroofed corridors not required for ingress or egress are excluded. The area of elevator shafts and stairwells is also included except on the ground floor. ….. Please note that this modification to the Policy Committee’s recommendation does not change the way we currently count below grade square footage. 3. The proposed amendments (Attachment 9) would add a section with additional criteria for reviewing below grade square footage, which had been previously included in the Cellar Policy. Section 29.40.072 - Below grade square footage in residential zones. (a) The use of below grade square footage is allowed in residential zones as a means to provide hidden square footage in lieu of visible mass. Below grade square footage shall not be counted as floor area when meeting the following criteria: 1. Below grade square footage shall not extend beyond the enclosed building footprint of the main building (including attached garage) or detached accessory structures. 2. Below grade square footage is permitted only once on a limited to one location on a property, additional below grade areas shall be included in the floor area calculation. PAGE 7 OF 9 SUBJECT: CONSIDER AMENDMENTS TO THE TOWN CODE REGARDING CELLARS. TOWN CODE AMENDMENT/A-17-001 AUGUST 30, 2017 S:\COUNCIL REPORTS\2017\09-05-17\Cellar Policy\Staff Report - Cellar Policy Final.docx 8/31/2017 3:06 PM DISCUSSION (Continued): 3. Light and exit wells may encroach into front and side yard setbacks for the purpose of providing the minimum criteria for natural light and ventilation as required to comply with the uniform building code. A minimum three -foot wide pedestrian access shall be provided around the light well(s). 4. Light wells and exit wells may extend beyond the building footprint. 5. Planning Commission may allow an exception to the criteria listed above based on extenuating or exceptional circumstances applicable to the proper ty including, but not limited to size, shape, topography, location, or surroundings. The commission shall make findings to support their decision. In addition to the changes noted above, the following sections of the Town Code would need to be amended, replacing the term cellar with below grade square footage, to provide further consistency throughout the Town Code (Attachment 9): a. Section 29.40.650 - Height The maximum height of any principal building in a R-M or multiple-family residential zone is thirty (30) feet, except when the building has cellar below grade parking the maximum is thirty-five (35) feet. The height shall be measured as provided in section 29.40.045 and is subject to the exception listed in section 29.10.090. b. Section 29.20.485 (3)(c)- Administrative procedure for minor historic projects Additions to the first floor of a residence (excluding additions not visible from the street that do not exceed fifteen (15) percent of the existing floor area of the house (excluding cellars below grade square footage) or four hundred (400) square feet of gross floor area, whichever is less). In addition, the Planning Commission recommended that Council consider other options for reducing bulk and mass. This request will be added to the list of possible strategic priorities for 2018-2020. PAGE 8 OF 9 SUBJECT: CONSIDER AMENDMENTS TO THE TOWN CODE REGARDING CELLARS. TOWN CODE AMENDMENT/A-17-001 AUGUST 30, 2017 S:\COUNCIL REPORTS\2017\09-05-17\Cellar Policy\Staff Report - Cellar Policy Final.docx 8/31/2017 3:06 PM DISCUSSION (Continued): E. Additional Town Documents Requiring Modification If the amendments to Chapter 29 of the Town Code are adopted, the following documents will need to be revised in order to ensure consistency as they reference the terms basement and/or cellar: Town Document Page Number General Plan Policy CD-6.3 Residential Design Guidelines Pages 3, 5, 12, 23, 41, 57, 60, 84 Hillside Development Standards and Guidelines Pages 17, 29, 30, 36, 68, 70 Hillside Development Standards and Guidelines Compliance Checklist Pages 2, 3, 4 North 40 Specific Plan Pages 2-11, 6-10, 6-11, 6-15 A summary of the specific changes to these Town documents are included in Exhibit 11 of Attachment 1. As the above documents come forward for modification, staff will include the necessary amendments. CONCLUSION: Staff recommends that the Town Council: 1. Make the finding that there is no possibility that this project will have a significant impact on the environment; therefore the project is not subject to the California Environmental Quality Act [Section 15061 (b) (3).] (Attachment 1, Exhibit 1); 2. Make the required finding that the Town Code (Zoning Regulations) amendments are consistent with the General Plan (Attachment 1, Exhibit 1); 3. Adopt a Resolution rescinding Resolution 2002-167, Cellar Policy (Attachment 8); and 4. Introduce the Ordinance of the Town of Los Gatos affecting the amendments of Town Code Amendment regarding cellars A-17-001 (Attachment 9), by title only, with any specific changes identified and agreed upon by the majority of the Town Counc il. PAGE 9 OF 9 SUBJECT: CONSIDER AMENDMENTS TO THE TOWN CODE REGARDING CELLARS. TOWN CODE AMENDMENT/A-17-001 AUGUST 30, 2017 S:\COUNCIL REPORTS\2017\09-05-17\Cellar Policy\Staff Report - Cellar Policy Final.docx 8/31/2017 3:06 PM ALTERNATIVES: Alternatively, the Council may: 1. Accept the Planning Commission’s recommendation with modifications; or 2. Accept the Town Council Policy Committee’s recommendation; or 3. Continue this item to a date certain with specific direction to staff; or 4. Refer the item back to the Town Council Policy Committee with specific direction. CEQA DETERMINATION: The project is Categorically Exempt pursuant to the adopted Guidelines for t he Implementation of the California Environmental Quality Act, Section 15061(b)(3), in that it can be seen with certainty that there is no possibility that the proposed amendments to the Town Code would have a significant effect on the environment. PUBLIC COMMENTS: Exhibit 10 includes public comments received between 11:01 a.m. on June 28, 2017 and 11:00 a.m. August 31, 2017. Attachments: 1. May 24, 2017 Planning Commission Staff Report (with Exhibits 1-13) 2. May 24, 2017 Planning Commission Addendum (with Exhibits 14-15) 3. May 24, 2017 Planning Commission Meeting Verbatim Minutes 4. June 28, 2017 Planning Commission Staff Report (with Exhibit 16) 5. June 28, 2017 Planning Commission Desk Item (with Exhibit 17) 6. June 28, 2017 Planning Commission Meeting Verbatim Minutes 7. Existing and Proposed Below Square Footage Diagram 8. Draft Resolution Rescinding Resolution 2002-167: Cellars 9. Draft Ordinance Amending Town Code Chapter 29 10. Public comments received between 11:01 a.m., June 28, 2017 and 11:00 a.m., August 31, 2017