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Staff Report PREPARED BY: SALLY ZARNOWITZ, AIA, LEED AP Planning Manager 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: 12/05/2017 ITEM NO: 13 DATE: NOVEMBER 30, 2017 TO: MAYOR AND TOWN COUNCIL FROM: LAUREL PREVETTI, TOWN MANAGER SUBJECT: TOWN CODE AMENDMENT APPLICATION A-17-003. PROJECT LOCATION: TOWN WIDE. APPLICANT: TOWN OF LOS GATOS. CONSIDER AMENDMENTS TO CHAPTER 29 (ZONING REGULATIONS) OF THE TOWN CODE REGARDING ACCESSORY DWELLING UNITS. RECOMMENDATION: Accept the Planning Commission’s recommendation and introduce the draft Ordinance, by title only, to amend Chapter 29 (Zoning Regulations) of the Town Code regarding accessory dwelling units (Attachment 9). BACKGROUND: In 2016 Governor Brown signed Senate Bill 1069 and Assembly Bill 2299 (Attachment 1, Exhibits 1 and 2), amending Government Code Section 65852.2 regarding accessory dwelling unit regulations (Attachment 1, Exhibit 3). The intent of the new State law was to address the current housing crisis and increase affordable housing opportunities by allowing more flexibility in land use regulations. An application for a permit to create an accessory dwelling unit is required to be approved or disapproved ministerially by a local jurisdiction, without discretionary review, within 120 days of receiving the application. Local ordinances that do not wholly conform to the new State law are superseded until conforming local ordinances are adopted. At the Town Council Priority Setting Study Session on January 31, 2017, amendments to Chapter 29 of the Town Code (Zoning Regulations) regarding accessory dwelling units was identified as a strategic priority. In the Fall of 2017 the Governor signed Senate Bill 229 and Assembly Bill 494 (Attachment 5, Exhibit 10A), further clarifying certain provisions for accessory dwelling units. PAGE 2 OF 11 SUBJECT: CONSIDER AMENDMENTS TO THE TOWN CODE REGARDING ACCESSORY DWELLING UNITS. TOWN CODE AMENDMENT/A-17-003 NOVEMBER 30, 2017 S:\COUNCIL REPORTS\2017\12-05-17\ADU Ordinance\Staff Report - ADU Final.docx 11/30/2017 4:31 PM DISCUSSION: A. Public Outreach Staff reached out to the following organizations and requested input on the proposed Town Code amendments regarding accessory dwelling units:  Santa Clara Valley Chapter of the American Institute of Architects (AIASCV)  Santa Clara County Association of Realtors (SCCAR)  Silicon Valley Association of Realtors (SILVAR) 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. To date, staff has also discussed the proposed amendments with approximately ten different members of the public and design community. B. Planning Commission At the September 27, 2017 Planning Commission hearing, the Commission received the Staff Report (Attachments 1 through 3), considered comments from the public, and discussed the proposed draft Ordinance (see Verbatim Minutes, Attachment 4). During the September 27, 2017 Planning Commission hearing, members of the public provided comments, including support for the draft Ordinance, as well as concerns related to:  The status of a deed restriction previously required to be recorded prohibiting an accessory dwelling unit on an individual lot due to parking constraints; and  Questions about the definition of a nonconforming lot, deed restriction requirements for low income units, and how Floor Area Ratio (FAR) standards would be applied for existing square footage. PAGE 3 OF 11 SUBJECT: CONSIDER AMENDMENTS TO THE TOWN CODE REGARDING ACCESSORY DWELLING UNITS. TOWN CODE AMENDMENT/A-17-003 NOVEMBER 30, 2017 S:\COUNCIL REPORTS\2017\12-05-17\ADU Ordinance\Staff Report - ADU Final.docx 11/30/2017 4:31 PM DISCUSSION (Continued): The Planning Commission discussed input received during public testimony, and and continued the item to November 8, 2017 with the following recommendations: Parking  Allow accessory dwelling unit parking spaces in front setback areas and in a tandem configuration;  Clarify that the exception to parking requirements apply to accessory dwelling units within one-half mile of a public transit “stop;”  Define the term “car share vehicle;” and  Add an exception to parking requirements in cases where individual lots do not have adequate area to provide parking. Permitted zones  Allow accessory dwelling units on nonconforming lots in the R-1, R-M, R-1D, HR, and RC zones. Stories and height  Allow attached or detached accessory dwelling units within the existing space of a two-story primary dwelling unit or accessory structure; and  Do not allow the construction of new two-story attached or detached accessory dwelling units. Size  Do not limit the allowable floor area of an attached accessory dwelling unit to 50 percent of the existing floor area of the primary dwelling unit; and  Allow a sliding-scale, up to 1,200 square feet, for the maximum size of accessory dwelling units based on type (attached or detached), and lot size.  Require units to comply with the FAR and coverage standards for the zone. Elimination of Existing Accessory Dwelling Units  Designate the Development Review Committee (DRC) as the primary decision- making body for applications for elimination and/or demolition of accessory dwelling units. Other  Require accessory dwelling units in the HR and RC zones to comply with the HSD&G; and  Do not require a recorded deed restriction specifying that the accessory dwelling unit shall be offered at a lower income rent (less than 80 percent AMI) if it is occupied by someone other than a member of the household. PAGE 4 OF 11 SUBJECT: CONSIDER AMENDMENTS TO THE TOWN CODE REGARDING ACCESSORY DWELLING UNITS. TOWN CODE AMENDMENT/A-17-003 NOVEMBER 30, 2017 S:\COUNCIL REPORTS\2017\12-05-17\ADU Ordinance\Staff Report - ADU Final.docx 11/30/2017 4:31 PM DISCUSSION (Continued): At the November 8, 2017 Planning Commission hearing, the Commission received the Staff Report (Attachments 5 through 7), considered comments from the public, and discussed the proposed draft Ordinance (see Verbatim Minutes, Attachment 8). During the November 8, 2017 Planning Commission hearing, members of the public provided comments, including support for the draft Ordinance, as well as additional concerns related to:  Questions about allowing parking in setbacks; and  State law requirements to allow at least one efficiency unit on a lot, defined as a unit no larger than 150 square feet with partial kitchen or bathroom facilities. The Planning Commission discussed the input received during public testimony, and forwarded a recommendation to the Town Council for approval of the proposed Ordinance with the following modifications: 1. Incorporate language on roof pitch from the Monte Sereno Ordinance (Attachment 5, Exhibit 11); 2. Incorporate language on the location of the entrance door from the Campbell Ordinance; 3. Incorporate language prohibiting an exterior staircase from the Cupertino Ordinance, with the exception that if an additional staircase is required to get to a second story, that the square footage shall not be counted in the floor area ratio; 4. Incorporate language that an accessory dwelling unit shall not be placed in front of the main unit from the Sunnyvale Ordinance; with the exception of the hillsides, where it could be elsewhere as long as it complies with the requirements on setbacks; 5. Incorporate language requiring deed-restricted owner occupation of one unit from the Campbell Ordinance; 6. Incorporate language prohibiting short-term rentals from the Campbell Ordinance; and 7. Incorporate language limiting the number of dogs and cats, consistent with the Town Code. Attachment 9 contains the proposed Ordinance as recommended by the Planning Commission. C. Components of the draft Ordinance Amendments to Chapter 29, including the following sections, are necessary to bring the Town Code into conformance with the new State law regarding accessory dwelling units: PAGE 5 OF 11 SUBJECT: CONSIDER AMENDMENTS TO THE TOWN CODE REGARDING ACCESSORY DWELLING UNITS. TOWN CODE AMENDMENT/A-17-003 NOVEMBER 30, 2017 S:\COUNCIL REPORTS\2017\12-05-17\ADU Ordinance\Staff Report - ADU Final.docx 11/30/2017 4:31 PM DISCUSSION (Continued):  ARTICLE I. DIVISION 1. Sec. 29.10.020 Definitions  ARTICLE I. DIVISION 4. Sec. 19.10.150(c)(2) Parking  ARTICLE I. DIVISION 7. Sec. 29.10.305-335 Accessory Dwelling Units  ARTICLE II. DIVISION 7. Sec. 29.20.745-750 Assignment of Duties  ARTICLE IV. DIVISION 1. Sec. 29.40.015 Accessory Buildings Definitions The new State law mandates that the term “second” dwelling unit be replaced with that of “accessory” dwelling unit. This requirement has been incorporated into the Definitions Section (Attachment 9, page 1), and throughout the draft Ordinance. References to the term “second” dwelling unit appear in other Town documents, including the 2020 General Plan, the 2015-2023 Housing Element, and the Residential Design Guidelines. As the above documents come forward for modification, staff will include the necessary amendments. The definition of an attached accessory dwelling unit would also be revised to match terminology used in the new State law by deleting the definition of an “interior accessory dwelling unit” and replacing it with “contained within the existing space of a primary dwelling unit or accessory structure” to match terminology used in the new State law (Attachment 9, page 2). Parking The new State law mandates that parking requirements for accessory dwelling units shall not exceed one parking space per unit or per bedroom, whichever is less. The new State law mandates that local jurisdictions allow accessory dwelling unit parking spaces in setback areas or through tandem parking, unless specific findings are made that such parking is not feasible based upon specific site or regional topographical , or fire and life safety conditions. The Planning Commission recommended allowing accessory dwelling unit parking spaces in front setback areas and in a tandem configuration to further meet the intent of the new State law. These requirements have been incorporated into the draf t Ordinance (Attachment 9, page 2). When a garage is demolished in conjunction with the construction of an accessory dwelling unit or converted to an accessory dwelling unit, and those parking spaces are required to be replaced, the new State law requires local jurisdictions to allow the replacement spaces be located in any configuration on the lot, including as tandem spaces, or as mechanical automobile lift spaces. These requirements have been incorporated into the draft Ordinance (Attachment 9, pages 3 and 7). PAGE 6 OF 11 SUBJECT: CONSIDER AMENDMENTS TO THE TOWN CODE REGARDING ACCESSORY DWELLING UNITS. TOWN CODE AMENDMENT/A-17-003 NOVEMBER 30, 2017 S:\COUNCIL REPORTS\2017\12-05-17\ADU Ordinance\Staff Report - ADU Final.docx 11/30/2017 4:31 PM DISCUSSION (Continued): The new State law mandates that local jurisdictions not impose parking requirements for an accessory dwelling unit: that is located within one-half mile of public transit; within an architecturally and historically significant historic district; within the existing space of a primary dwelling unit or accessory structure; when on-street parking permits are required but not offered to the occupant of the accessory dwelling unit; or when there is a car share vehicle located within one block of the accessory dwelling unit. The Planning Commission recommended clarifying that the exception to parking requirements apply to accessory dwelling units within one-half mile of a public transit “stop,” and defining the term “car share vehicle.” These clarifications have been incorporated into the draft Ordinance (Attachment 9, pages 3 and 7). The new State law also allows local jurisdictions to reduce or eliminate parking requirements for an accessory dwelling unit. The Planning Commission recommended adding an exception to the parking requirements for accessory dwelling units in cases where individual lots do not have adequate area to provide parking. This exception has been incorporated into the draft Ordinance (Attachment 9, pages 3 and 7). Existing unlawful accessory dwelling unit section The current Ordinance includes a section allowing for a moratorium period between June 1, 1983 and December 31, 1987 for existing unpermitted accessory dwelling units in the Town (Sec. 29.10.315). This section is no longer necessary, as an accessory dwelling unit application received after December 31, 1987 is treated as a new accessory dwelling unit, unless it is determined to be a nonconforming accessory dwelling unit due to a zone change or annexation. This section has been deleted from the draft Ordinance because it is no longer necessary, and to reduce confusion between the terms and regulations for unlawful and nonconforming accessory dwelling units (Attachment 9, page 4). Permitted zones The new State law allows local jurisdictions to allow for the creation of accessory dwelling units in areas zoned to allow single-family or multifamily use. Currently, accessory dwelling units are allowed on conforming lots in the R-1, R-M, and R-1D zones. The 2015-2023 Housing Element Enhanced Second Unit Policy (HOU-1.2) recommended expanding the allowable areas to include nonconforming lots 10,000 square feet or greater in the R-1, R-M and R-1D zones; and lots five acres or greater in the Hillside (HR and RC) zones with the recordation of a deed restriction. The deed restriction would specify that the accessory dwelling unit shall be offered at a reduced rent that is affordable to a lower income renter (less than 80 percent AMI) if the unit is occupied by someone other than a member of the household. The Planning Commission recommended allowing accessory PAGE 7 OF 11 SUBJECT: CONSIDER AMENDMENTS TO THE TOWN CODE REGARDING ACCESSORY DWELLING UNITS. TOWN CODE AMENDMENT/A-17-003 NOVEMBER 30, 2017 S:\COUNCIL REPORTS\2017\12-05-17\ADU Ordinance\Staff Report - ADU Final.docx 11/30/2017 4:31 PM DISCUSSION (Continued): dwelling units on nonconforming and hillside lots of all sizes, subject to FAR standards and the HDS&G without requiring recordation of a deed restriction. These requirements have been incorporated into the draft Ordinance (Attachment 9, page 6), with the inclusion of a 5,000-square foot minimum lot size requirement, which aligns with the smallest minimum lot size allowed in a residential zone (R-1D). The allowance for an incentive program referenced in the Housing Element would remain to encourage, but not require, homeowners to record a deed restriction to meet the Town’s Regional Housing Needs Allocation (RHNA) for low income un its (Attachment 9, page 5). Setbacks The proposed amendments would clarify that attached accessory dwelling units are required to meet all setbacks of the zone for the primary dwelling unit. The Planning Commission recommended that language be added clarifying that detached accessory dwelling units in the HR and RC zones are also required to comply with the setbacks of the zone for a primary dwelling unit and must be located within the Least Restrictive Development Area (LRDA) in conformance with the HDS&G. Detached accessory dwelling units in the R-1, R-M, and R-1D zones are required to meet front setbacks and side setbacks abutting a street of the zone for the primary dwelling unit, and are required to have five-foot rear and side setbacks. The Planning Commission included in its recommendation for approval, a provision that no accessory dwelling unit may be placed in front of the primary dwelling unit in the R-1, R-M, and R-1D zones. Given the varying lot conditions in Hillside areas, the Planning Commission did not feel this provision was necessary in the HR and RC zones. These requirements have been incorporated into the draft Ordinance (Attachment 9, page 6). Stories and height The proposed amendments would clarify that all new accessory dwelling units (attached and detached) shall be limited to one story and 15 feet in height. The new State law mandates that an accessory dwelling unit shall be permitted if it is proposed to be contained within the existing space of a primary dwelling unit or accessory structure, and would therefore be permitted within the existing second-story space of a primary dwelling unit or accessory structure. Most of the Planning Commissioners supported the construction of accessory dwelling units within the existing space of the second floor of a primary dwelling unit or accessory structure, including new window openings for e gress, light, and ventilation. The Commissioners did not support the construction of new two- story attached or detached accessory dwelling units. These requirements have been incorporated into the draft Ordinance (Attachment 9, pages 6 and 8). PAGE 8 OF 11 SUBJECT: CONSIDER AMENDMENTS TO THE TOWN CODE REGARDING ACCESSORY DWELLING UNITS. TOWN CODE AMENDMENT/A-17-003 NOVEMBER 30, 2017 S:\COUNCIL REPORTS\2017\12-05-17\ADU Ordinance\Staff Report - ADU Final.docx 11/30/2017 4:31 PM DISCUSSION (Continued): Size The new State law includes a provision that no size requirement shall be established by a local jurisdiction that does not permit at least an efficiency unit (150 square feet with partial kitchen or bathroom facilities) to be constructed in compliance with local design and development standards, such as setbacks and height. The new State law allows local jurisdictions to limit the floor area of an attached accessory dwelling unit to 50 percent of the existing living area, or 1,200 square feet. The Planning Commission did not recommend limiting the allowable floor area of an attached accessory dwelling unit to 50 percent of the existing floor area of the primary dwelling unit. The Commission recommended allowing a sliding-scale, up to 1,200 square feet, for the maximum size of accessory dwelling units based on type (attached or detached), and lot size. The proposed amendments would retain the 750-square-foot allowable floor area for attached accessory dwelling units on lots between 5,000 and 9,999 square feet and increase the allowable floor area to 900 square feet for attached accessory dwelling units on lots 10,000 gross square feet or greater. The 900-square-foot allowable floor area would be retained for detached accessory dwelling units on lots between 5,000 and 9,999 square feet and would be increased to 1,200 square feet on lots 10,000 gross square feet or greater. Accessory dwelling units would not be subject to the Administrative Procedure for Minor Residential Projects, even if they are greater than 450 square feet. Additionally, accessory dwelling units in the Hillside Residential zones would not be subject to discr etionary DRC or Planning Commission review, regardless of whether they were greater than 600 or 1,000 square feet. Maximum sizes would continue to be subject to FAR and coverage limits for the zone, with the provision that enclosed entrance stairway space, when needed, would be excluded from FAR and coverage standards. These requirements have been incorporated into the draft Ordinance (Attachment 9, page 6). Design, form, materials, and color The current Ordinance requires the design, form, materials, and color of an accessory dwelling unit to be compatible with those of the primary dwelling unit. The Planning Commission’s recommendation included a provision requiring roof pitches to be compatible, and prohibiting entrances serving the accessory dwelling unit from being constructed on any elevation facing a public street . These requirements have been incorporated into the draft Ordinance (Attachment 9, page 7). Conversion of Existing Space The new State law mandates that an accessory dwelling unit shall be permitted if it is proposed to be contained within the existing space of a primary dwelling unit or accessory structure. The proposed amendments would specify that such an accessory dwelling unit PAGE 9 OF 11 SUBJECT: CONSIDER AMENDMENTS TO THE TOWN CODE REGARDING ACCESSORY DWELLING UNITS. TOWN CODE AMENDMENT/A-17-003 NOVEMBER 30, 2017 S:\COUNCIL REPORTS\2017\12-05-17\ADU Ordinance\Staff Report - ADU Final.docx 11/30/2017 4:31 PM DISCUSSION (Continued): shall be permitted if it is located within a zone for single-family use, has a separate entrance from the primary dwelling unit, and has existing side and rear setbacks sufficient for fire safety. Most of the Planning Commissioners supported the construction of accessory dwelling units within the existing space of the second floor of a primary dwelling unit or accessory structure, including new window openings for egress, light, and ventilation. The Planning Commission’s recommendation included a provision excluding the area of an enclosed accessory dwelling unit entrance stairway from countable floor area for the purposes of FAR and coverage calculations. This exclusion has been incorporated into the draft Ordinance (Attachment 9, page 8). Elimination of Existing Accessory Dwelling Units Town Code currently designates the Planning Commission as the decision-making body for applications for demolition, conversion, removal of accessory dwelling units, and the construction of new units. State law superseded the requirement for Planning Commission approval for the construction of new units in 2003. The Planning Commission recommended the DRC as the primary decision-making body for applications for elimination and/or demolition of accessory dwelling units. This modification has been incorporated into the draft Ordinance (Attachment 9, page 10). Owner-occupation and rentals longer than 30 days The current Ordinance does not require owner-occupation of either a primary or accessory dwelling unit. The new State law allows local jurisdictions to require owner-occupation and rental terms longer than 30 days. The Planning Commission included in its recommendation for approval a provision requiring deed-restricted owner occupation of either the primary or accessory dwelling unit, and a provision prohibiting rental terms less than 30 days. These modifications have been incorporated into the draft Ordinance (Attachment 9, page 8). Number of dogs and cats The Planning Commission’s recommendation included a provision requiring accessory dwelling units to conform with the Town Code regarding the maximum number of dogs and cats. A requirement to comply with Section 4.40.010 of the Town Code has been incorporated in the draft Ordinance (Attachment 9, page 8). The draft Ordinance (Attachment 9) details the proposed amendments. All new text is shown as underlined font and all deletions are shown with strikethrough font. Modifications included in the Planning Commission’s recommendation are provided in bold font. Additional discussion and supporting information for the proposed amendments are available in the materials for the September 27, 2017 Planning PAGE 10 OF 11 SUBJECT: CONSIDER AMENDMENTS TO THE TOWN CODE REGARDING ACCESSORY DWELLING UNITS. TOWN CODE AMENDMENT/A-17-003 NOVEMBER 30, 2017 S:\COUNCIL REPORTS\2017\12-05-17\ADU Ordinance\Staff Report - ADU Final.docx 11/30/2017 4:31 PM DISCUSSION (Continued): Commission hearing (Attachments 1 through 3) and verbatim minutes (Attachment 4), and the materials for the November 8, 2017 Planning Commission hearing (Attachments 5 through 7) and verbatim minutes (Attachment 8). D. Planning Commission Recommendation At the November 8, 2017 hearing, the Planning Commission discussed input received during public testimony, and forwarded a recommendation to the Town Council for approval of the proposed amendments (Attachment 9) with modifications as outlined above. 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 9); 2. Make the required finding that the Town Code (Zoning Regulations) amendments are consistent with the General Plan (Attachment 9); and 3. Introduce the Ordinance of the Town of Los Gatos affecting the amendments of the Town Code regarding accessory dwelling units A-17-003 (Attachment 9), by title only, with any specific changes identified and agreed upon by the majority of the Town Council. ALTERNATIVES: Alternatively, the Council may: 1. Continue this item to a date certain with specific direction to staff; 2. Refer the item back to the Planning Commission with specific direction; or 3. Take no action, leaving the Town Code unchanged. CEQA DETERMINATION: There is no possibility that the project would have a significant impact on the environment; therefore, the project is not subject to the California Environmental Quality Act [Section 15061(b)(3)]. PAGE 11 OF 11 SUBJECT: CONSIDER AMENDMENTS TO THE TOWN CODE REGARDING ACCESSORY DWELLING UNITS. TOWN CODE AMENDMENT/A-17-003 NOVEMBER 30, 2017 S:\COUNCIL REPORTS\2017\12-05-17\ADU Ordinance\Staff Report - ADU Final.docx 11/30/2017 4:31 PM PUBLIC COMMENTS: No public comments have been received. Attachments: 1. September 27, 2017 Planning Commission Staff Report (with Exhibits 1-8) 2. September 27, 2017 Planning Commission Addendum (with Exhibit 9) 3. September 27, 2017 Planning Commission Desk Item (with Exhibit 10) 4. September 27, 2017 Planning Commission Verbatim Minutes 5. November 8, 2017 Planning Commission Staff Report (with Exhibits 9A-16) 6. November 8, 2017 Planning Commission Addendum (with Exhibit 16A-18) 7. November 8, 2017 Planning Commission Desk Item (with Exhibit 19) 8. November 8, 2017 Planning Commission Meeting Verbatim Minutes 9. Draft Ordinance Amending Town Code Chapter 29