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Item 4 - Exhibit 04 - Conditional Use Permit U-05-016PREPARED BY: JOEL PAULSON Community Development Director Reviewed by: Town Manager 110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832 www.losgatosca.gov TOWN OF LOS GATOS POLICY COMMITTEE REPORT MEETING DATE: 4/9/2019 ITEM NO: 2 DATE: APRIL 2, 2019 TO: POLICY COMMITTEE FROM: LAUREL PREVETTI, TOWN MANAGER SUBJECT: PROVIDE DIRECTION ON POTENTIAL DEMOLITION REGULATION MODIFICATIONS. RECOMMENDATION: Provide direction on potential demolition regulation modifications. BACKGROUND: On February 26, 2019, the Policy Committee reviewed an outline of possible streamlining opportunities that relate to the land use process and costs for businesses and residences. Following a brief discussion, the Policy Committee provided direction to brin g back demolition regulations for further discussion. Potential demolition regulation modifications were one of the topics identified by staff as an opportunity to streamline the land use process and costs for residences. Attachment 1 contains the general comments and questions regarding potential demolition regulation modifications presented in the February 26, 2019 Policy Committee report. DISCUSSION: Design professionals and property owners often find it difficult to comply with the Town’s demolition regulations, and more specifically the contiguity requirement. This can lead to increased costs for plan revisions and design modifications that do not meet the needs of the property owner. Alternatively, the property owner can decide to go through the Architecture EXHIBIT 4 PAGE 2 OF 2 SUBJECT: DEMOLITION REGULATIONS DATE: APRIL 2, 2019 N:\MGR\AdminWorkFiles\Council Committee - POLICY\2019\04.09.19\02 Demolition Regulations\Item #2 - Demolition Regulations Staff Report.docx 4/5/2019 10:01 AM DISCUSSION (continued): and Site application process for a technical demolition (new house) which leads to increased processing time and costs when compared to a non -discretionary Building Permit process. Another challenge that arises during the construction process for an approved remodel of a non-historic house is structural element or material damage that is not discovered until construction has begun. Currently there are three exemptions for historic structures rel ating to replacement, repair, and removal, as outlined in Attachment 2. Under the current requirements, non-historic buildings do not allow any of these exemptions. When non- repairable circumstances arise, that if repaired would trigger a demolition, then the property owner must go through the Architecture and Site application process for a technic al demolition (new house) which leads to increased processing time and costs. Based on the concerns raised above, staff has prepared potential Town Code amendments (Attachment 2) for the Policy Committee’s consideration. These amendments would allow for more remodels to be processed as Building Permits and provide non-historic houses similar flexibility as historic houses when non-repairable circumstances arise. The potential amendments, shown in strike through and underline font, would make the following changes: • Remove the contiguity requirement from the demolition definitions; and • Allow an exception to the demolition requirements for the repair of non-historic homes. Amendments to the Demolition Affidavit (Attachment 3) reflecting these changes will also be prepared following the Policy Committee’s direction on this topic. This meeting will allow for a conversation between staff and the Policy Committee. Staff will be prepared to walk through this matter and answer questions. Staff is interested in the Policy Committee’s discussion and direction on the potential demolition regulation modifications. COORDINATION: The preparation of this report was coordinated with the Town Manager’s Office. Attachments: 1. General comments and questions regarding potential demolition regulation modifications 2. Potential Town Code amendments 3. Existing Demolition Affidavit ATTACHMENT 1 POSSIBLE STREAMLINING OPPORTUNITIES DEMOLITION REGULATIONS - The contiguity requirement can create extra work for property owners and design professionals. - If contiguity is not maintained, then an Architecture and Site application is required. - Should chimneys count as exterior siding? - Should chimneys be exempt from the contiguity requirement? - Should relocation of a house constitute a demolition? - Should entryway modifications be exempt from the contiguity requirement? - Is a 12-inch wall material connection contiguity requirement appropriate? - Is a 12-inch contiguity requirement appropriate where 12 inches doesn’t exist above an existing door or window? - If retained, should existing shear wall beneath stucco or other exterior wall material be considered retained wall area? - Should replacement of in kind non-repairable exterior wall covering as determined by Building Official, and resulting in no change to exterior appearance, be considered retained wall area for non-historic structures? - If attached garage wall framing is retained, but exterior wall material is removed, should exterior garage walls with no interior finish be considered retained wall area? - Should the requirement that the wall area remaining must be contiguous be removed? - Should the 50% wall area requirement be removed? - This would assist with remodels. N:\DEV\TC POLICY COMMITTEE REPORTS\2019\4-9-19\Demolition\Attachment 1 - General Comments and Questions.docx ATTACHMENT 2 Excerpts from Los Gatos Town Code Chapter 29 Section 29.10.020 Demolition (historic structures) means: (1) Removal of more than twenty-five (25) percent of the wall(s) facing a public street(s) (or a street facing elevation if the parcel is a corridor lot or is landlocked) or fifty (50) percent of all exterior walls; or (2) Enclosure or alteration (i.e.: new window and/or window relocation) of more than twenty-five percent of the walls facing a public street (or a street facing elevation i f the parcel is a corridor lot or is landlocked) or fifty (50) percent of the exterior walls so that they no longer function as exterior walls; or All remaining exterior walls must be contiguous and must retain the existing exterior wall covering. No new exterior wall covering shall be permitted over the existing exterior wall covering. The following are exempt from this definition: a. Replacement. The exterior wall covering may be removed if the covering is not original to the structure. b. Repair. The removal and replacement of in kind non-repairable exterior wall covering resulting in no change to its exterior appearance or historic character if approved by the deciding body. c. Removal. The removal of an addition(s) that is not part o f the original structure and which has no historic significance, as determined by the Historic Preservation Committee. Demolition shall be determined by subsections (1) and (2) above for the original structure, where walls enclosed by additions shall be considered as exterior walls. Demolition (non historic structures) means removal of more than fifty (50) percent of the exterior walls. The remaining exterior walls must be contiguous and must maintain retain either the existing interior or existing exterior wall covering. The following is exempt from this definition: a. Repair. The removal and replacement of in kind non-repairable exterior wall covering resulting in no change to its exterior appearance or historic character if approved by the deciding body. N:\DEV\TC POLICY COMMITTEE REPORTS\2019\4-9-19\Demolition\Attachment 2 - Potential Town Code Amendments.docx ATTACHMENT 3 DEMOLITION AFFIDAVIT Non-Historic Structures (Not in an historic district or on an historic site and/or constructed after 1941) Demolition: The definition of demolition as set forth in Section 29.10.020 is attached. Demolition of a structure means: • Demolition of more than fifty (50) percent of all exterior wall areas. • Failure to maintain a contiguous (connecting without a break) portion of existing exterior wall area that is 50% or more of the total exterior wall area. • The remaining exterior wall area must maintain either the existing interior or existing exterior wall covering . Historic Structures (Located in an historic district or on a n historic site and/or constructed before 1941) Demolition: The definition of demolition as set forth in Section 29.10.020 is attached. Demolition of an historic structure means: • Removal of more than twenty-five (25) percent of the wall area facing a public street(s) and/or fifty (50) percent of all exterior wall area; or • Enclosure or alteration of more than twenty-five (25) percent of the wall area facing a public street and/or fifty (50) percent of the exterior wall area so that they no longer function as exterior walls. All remaining exterior wall area must be contiguous. No new exterior wall covering shall be permitted over the existing exterior wall covering. There are exceptions for replacement, repair, or removal. Please see Section 29.10.020 for exceptions. Additional Information: • When a section of an exterior wall has both the interior and exterior wall covering removed, this section of wall is considered demolished, even if the structural components (i.e. studs or sheathing) of the wall remain, except for historical structures. • Dry rot or any other damage does not exempt the project from any provision set forth by Section 29.10.09030. If you find dry rot and need to repair it, STOP WORK and contact the Planning Division at (408) 354-6872 to discuss the changes BEFORE YOU PROCEED. • If you encounter an unanticipated situation that changes the scope of work, STOP WORK and contact the Planning Division at (408) 354-6872 to discuss the changes BEFORE YOU PROCEED. • Exterior wall covering means the finished surface of an exterior wall (i.e. stucco, siding or shingles). • Interior wall covering means the finished surface of an interior wall (i.e. sheetrock or plaster). • Exterior wall means the side of a building connecting foundation and roof. A wall encompasses the total height and width of the side of the building, the exterior or interior wall covering , and studs/structural elements used in framing the wall. • Existing wall area does not include existing door and window openings. • If the connection from the roof all the way to the foundation is broken, contiguity is broken. A one foot minimum connection is typically required to qualify as contiguous. I have read and understand all the information on this page: Property Owner (sign and date) Architect of Record (sign and date) Engineer of Record (sign and date) Contractor of Record (sign and date) The information contained in this application is considered part of the public record. Therefore, it will appear in both the public record file for the site address, which is available upon request, and on the permitting system on the official Town of Los Gatos website at www.losgatosca.gov. Rev. 8/12 DEMOLITION AFFIDAVIT (continued) Read this entire page, initial by your title, sign, and date at the bottom. __________ Property Owner: I certify that I have reviewed the proposed plans and understand all the implications of the proposed scope of work as it pertains to the demolition affidavit. I understand that an unlawful demolition will result in a stop work order, fee penalties, and additional review (as a new structure) as prescribed by the Town. Furthermore, I am ultimately responsible for all persons working on this project. __________ Architect of Record: I certify that I have reviewed the project demolition plan/colorized elevations and verify that it is accurate, does not propose a demolition as defined by the Town , and that the structural plans do not conflict with the demolition plans. I understand that an unlawful demolition will result in a stop work order, fee penalties, and additional review (as a new structure) as prescribed by the Town. This certification does not apply to work of any other consultant or contractor that is inconsistent with the plan that I have prepared or otherwise approved for this project. __________ Engineer of Record: I certify that I have reviewed the project demolition plan/colorized elevations, and the structural plans do not conflict with the demolition plans. I understand that an unlawful demolition will result in a stop work order, fee penalties, and additional review (as a new structure) as prescribed by the Town. This certification does not apply to work of any other consultant or contractor that is inconsistent with the plan that I have prepared or otherwise approved for this project. __________ Contractor of Record: I certify that I have reviewed the proposed plans and understand all the implications of the proposed scope of work as it pertains to the demolition affidavit. I certify that I have reviewed the project demolition plan/colorized elevations, and the structural plans do not conflict with the demolition plans. I understand that an unlawful demolition will result in a stop work order, fee penalties , and additional review (as a new structure) as prescribed by the Town. I, Engineer of Record, Architect of Record, Property Owner, and Contractor of Record, hereby certify that I have read and fully understand Section 29.10.020 of the Town Code (attached) concerning the definition of an historic structure and the definition of a demolition and that I have read and fully understand Section 29.10.09030 (f) through (I) of the Town Code (attached) concerning penalties associated with unlawful demolition. I understand that if an unlawful demolition occurs , this application and permit will be subject to an additional development review process including a public h earing for which new requirements may be imposed and any existing nonconforming conditions will need to be addressed. New requirements may include undergrounding of electr ical service, sidewalk improvements, and right-of-way dedication. PROJECT ADDRESS Building Permit Number Engineer of Record (sign, print, and date) Property Owner (sign, print, and date) Architect of Record (sign, print, and date) Contractor of Record (sign, print, and date) Excerpts from Los Gatos Town Code Chapter 29 Section 29.10.020 Demolition (historic structures) means: (1) Removal of more than twenty-five (25) percent of the wall(s) facing a public street(s) (or a street facing elevation if the parcel is a corridor lot or is landlocked) or fifty (50) percent of all exterior walls; or (2) Enclosure or alteration (i.e.: new window and/or window relocation) of more than twenty-five percent of the walls facing a public street (or a street facing elevation if the parcel is a corridor lot or is landlocked) or fifty (50) percent of the exterior walls so that they no longer function as exterior walls; or All remaining exterior walls must be contiguous and must retain the existing exterior wall covering. No new exterior wall covering shall be permitted over the existing exterior wall covering. The following are exempt from this definition: a. Replacement. The exterior wall covering may be removed if the covering is not original to the structure. b. Repair. The removal and replacement of in kind non-repairable exterior wall covering resulting in no change to its exterior appearance or hi storic character if approved by the deciding body. c. Removal. The removal of an addition(s) that is not part of the original structure and which has no historic significance, as determined by the Historic Preservation Committee. Demolition shall be determined by subsections (1) and (2) above for the original structure, where walls enclosed by additions shall be considered as exterior walls. Demolition (non historic structures) means removal of more than fifty (50) percent of the exterior walls. The remaining exterior walls must be contiguous and must maintain either the existing interior or existing exterior wall covering. Excerpts from Los Gatos Town Code Chapter 29 Section 29.10.09030 Sec. 29.10.09030. Demolitions. (a) Scope. Applications for demolition permits (Uniform Building Code, section 301(a), or any successor section) filed with the Building Department shall be submitted to the Planning Director for approval unless such permit is required as part of a cod e enforcement action by the Building Official, Council, or other authorized agency. (b) Approval of permits. The Planning Director may approve the demolition permit application if: (1) It is accompanied by a building permit for a replacement structure which meets all town regulations and has received all required approvals, or (2) It is for demolition of an accessory building or structure. (c) Demolition of historic structures. A demolition permit for a historic structure may only be approved if: (1) The structure poses an imminent safety hazard; or (2) The structure is determined not to have any special historical, architectural or aesthetic interest or value. Any request to demolish an historic structure shall be reviewed by the Historic Preservation Committee. All applications to demolish an historic structure which has been identified as a contributor to an existing historic district, a potential historic district, or is eligible for local designation shall be accompanied by a detailed report describing all aspects of the structure's physical condition and shall incorporate pertinent information from the Town's Historic Resources Inventory describing the structure's historical and architectural characteristics. This report shall be prepared by a qualified person knowledgeable in historic preservation under contract with the Town at the applicant's expense. Applications for all other historic structures proposed for demolition shall be accompanied by a detailed report describing all aspects of the structure's physical condition prepared by an architect, licensed design professional or registered civil engineer at the applicant's expense. (d) Architecture and site approval required. Issuance of a demolition permit requires architecture and site approval if: (1) The conditions of subsection (b)(1) are not met, or (2) An application is for demolition of an accessory building or structure and the Planning Director determines for any reason that the accessory building or structure ought not to be demolished. (e) Findings. In architecture and site approval proceedings, the deciding body shall consider: (1) Maintaining the Town's housing stock. (2) Preservation of historically or architecturally significant buildings or structures. (3) Property owner's desire or capacity to maintain the structure. (4) Economic utility of the building or structure. (f) Verification that work will not result in a demolition: Prior to issuance of a building permi t and/or zoning approval for an addition where the work will result in the removal of over forty (40) percent of the exterior walls, the developer shall submit written verification from a registered structural engineer, certifying that the exterior walls s hown to remain are structurally sound and will not be required to be removed for the addition. Prior to issuance of a building permit, the property owner and contractor shall sign an affidavit to the town that they are aware of the town's definition of a demolition and the penalties associated with an unlawful demolition. (g) Penalties for unlawful demolition: A property owner who has unlawfully demolished a structure shall: (1) File the required Planning and Building Department applications and pay the required fees as established by resolution for new applications and for work unlawfully completed. (2) Be subject to the greater of the following penalties set by the Planning Director as an administration order: a. If the structure has a Landmark Historic Preservation designation a fine equaling fifteen (15) percent of the building permit valuation at the time of demolition, as determined by the Planning Director; or b. If the structure was an historic residence and does not have a Landmark Historic Preservation overlay zone, the fine shall be equal to ten (10) percent of the building permit valuation at the time of demolition, as determined by the Planning Director. If no building permit was issued, the fine shall be assessed on the building permit filed for the replacement structure. (3) In all cases, no changes to the previously approved plans may be made except as determined by the Planning Director to meet current zoning and building code requirements. No building permits for new construction at this site shall be approved until the required applications have been filed and approved and the required penalty fee has been paid. (h) Collection of penalty fees. The Town may collect the assessed penalty fees by use of all legal means including the recordation of a lien. (1) Whenever the amount on the penalty fee pursuant to this chapter has not been satisfied in full within ninety (90) days and/or has not been successfully challenged by a timely writ of mandate, this obligation may constitute a lien against the real property on which the violation has occurred. (2) The lien provided herein shall have no force and effect until recorded with the county recorder. Once recorded, the administration order shall have the force and effect and priority of a judgment lien governed by the provisions of sections 697.340 of the Code of Civil Procedure and may be extended as provided in sections 683.110 to 683.220, inclusive, of the Code of Civil Procedure. (3) Interest shall accrue on the principal amount of the judgment remaining unsatisfied pursuant to law. (4) Prior to recording any such lien, the Planning Director shall prepare and file with the Town Clerk a report stating the amounts due and owing. (5) The Town Clerk shall fix a time, date and place for hearing such report and any protests or objections thereto by Town Council. (6) The Planning Director shall cause written notice to be served on the property owner not less than ten (10) days prior to the time set for the hearing. a. Demolition for Corrective Maintenance. If during the construction process for an approved construction the developer has determined that the structure is in a deteriorated condition that cannot be repaired, an architecture and site application can be filed requesting a demolition without a penalty provided the following conditions have been met: 1. Construction work has ceased, and 2. The work completed prior to filing the application does not classify as a demolition, and 3. Documentation has been provided to justify the necessity of the demolition, and 4. No changes to the previously approved plans will be made except as determined by the Planning Director to meet current zoning and building code requirements. If a planning filing fee was paid for the original addition, this fee shall be credited to the architecture and site application fee. If the Development Review Committee determines that the application cannot be approved, the applicant shall pay the credited fee for the architecture and site application if the application is appealed to the Planning Commission. (j) Salvage of Building Materials. When demolition of a structure is allowed, the town shall provide the developer of the structure to be demolished with information about the salvaging of building materials. At least ten (10) days prior to the date when the demolition is scheduled to commence, the developer shall provide the Planning Director with written notice, and an advertisement published in a newspaper of general circulation, of the availability of materials for salvage, including the name and telephone number of a contact person. Upon request, the Planning Director may make this information available to persons who may be interested in contacting the owner(s) to arrange for possible salvage of building materials. No salvaging of materials shall occur until a demolition permit has been approved by the Building Department. (Ord. No. 1316, §§ 3.65.010--3.65.040, 6-7-76; Ord. No. 1375, 11-21-77; Ord. No. 1789, § V, 5- 15-89; Ord. No. 1887, § I, 2-3-92; Ord. No. 2083, § I, 5-7-01) N:\DEV\TC POLICY COMMITTEE REPORTS\2019\4-9-19\Demolition\Attachment 3 - Existing Demolition Affidavit.docx