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Item 4 - Staff Report.Demolition Regulations PREPARED BY: JENNIFER ARMER Senior Planner Reviewed by: Economic Vitality Manager, Planning Manager and Community Development Director 110 E. Main Street Los Gatos, CA 95030 ● 408-354-6874 www.losgatosca.gov TOWN OF LOS GATOS PLANNING COMMISSION REPORT MEETING DATE: 05/22/2019 ITEM NO: 4 DATE: MAY 17, 2019 TO: PLANNING COMMISSION FROM: JOEL PAULSON, COMMUNITY DEVELOPMENT DIRECTOR SUBJECT: TOWN CODE AMENDMENT APPLICATION A-19-003. PROJECT LOCATION: TOWN WIDE. APPLICANT: TOWN OF LOS GATOS. CONSIDER AMENDMENTS TO CHAPTER 29 (ZONING REGULATIONS) OF THE TOWN CODE REGARDING DEMOLITION REGULATIONS. RECOMMENDATION: Forward a recommendation to the Town Council for approval of the amendments to Chapter 29 (Zoning Regulations) of the Town Code regarding demolition regulations. CEQA: The project is Categorically Exempt pursuant to the adopted Guidelines for the 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 will have a significant effect on the environment. FINDINGS:  As required, pursuant to the adopted Guidelines for the Implementation of the California Environmental Quality Act, this project is Exempt, Section 15061(b)(3); and  That the amendments to Chapter 29 of the Town Code are consistent with the General Plan. 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 bring back demolition regulations for further discussion. PAGE 2 OF 5 SUBJECT: AMENDMENTS TO THE TOWN CODE REGARDING DEMOLITION/A-19-003 MAY 17, 2019 BACKGROUND (continued): Potential demolition regulation modifications was one of the topics identified by staff as an opportunity to streamline the land use process and costs for residences. On April 9, 2019, the Policy Committee reviewed potential demolition regulation modifications, including adding existing chimneys as an exclusion from the existing wall area, and recommended approval with review by the Historic Preservation Committee for modifications relating to historic structures. On April 24, 2019, the Historic Preservation Committee (HPC) considered the potential changes, as they would apply to historic structures. The verbal public comment received included a concern that existing walls proposed to remain could be divided into multiple non-contiguous “slivers.” After discussing the matter, the HPC recommended approval of the changes as recommended by the Policy Committee. 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 don’t meet the needs of the property owner. Alternatively, the property owner can decide to go through the discretionary Architecture 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 or material damage that is not discovered until construction has begun. Currently, there are three exemptions for historic structures relating to replacement, repair, and removal, as outlined in Exhibit 7. Under the current requirements, non-historic buildings don’t allow any of these exemptions. When non-repairable damage is discovered, that if repaired would trigger a demolition, then the property owner must go through the Architecture and Site Application process for a technical demolition (new house) which leads to increased processing time and costs. A. Public Outreach Public input has been requested through the following media and social media resources: • An eighth-page public notice in the newspaper; • A poster at the Planning counter at Town Hall; • The Town’s website home page, What’s New; • The Town’s Facebook page; PAGE 3 OF 5 SUBJECT: AMENDMENTS TO THE TOWN CODE REGARDING DEMOLITION/A-19-003 MAY 17, 2019 DISCUSSION (continued): • The Town’s Twitter account; • The Town’s Instagram account; and • The Town’s NextDoor page. In addition, the following organizations have been contacted regarding the amendments: • American Institute of Architects (AIA) Silicon Valley; • Santa Clara County Association of Realtors (SCCAR); and • Silicon Valley Association of Realtors (SILVAR). B. Existing Town Code Existing Town Code Section 29.10.020 defines demolition separately for historic structures and nonhistoric structures as defined below: 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 (ie: new window and or window relocation) of more than twenty-five (25) 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 historic 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. PAGE 4 OF 5 SUBJECT: AMENDMENTS TO THE TOWN CODE REGARDING DEMOLITION/A-19-003 MAY 17, 2019 DISCUSSION (continued): Demolition (nonhistoric 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. C. Existing Demolition Affidavit Per Town Code Section 29.10.09030(f), the Demolition Affidavit must be signed by the property owner and contractor prior to building permit submittal if the proposed work will result in the removal of over forty (40) percent of the exterior walls. The purposed of this affidavit is to show that they are aware of the Town's definition of a demolition and the penalties associated with an unlawful demolition. The Town’s current Demolition Affidavit is included as Exhibit 4, Attachment 3. D. Proposed Town Code Amendments Based on the concerns raised above, as recommended by the Policy Committee and the Historic Preservation Committee, staff has prepared potential Town Code amendments, (Exhibit 7) for Planning Commission’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 for non-historic and historic homes; and • Allow an exception to the demolition requirements for repair of non-historic homes. PUBLIC COMMENTS: Public comments received by 11:00 AM, Friday, May 17, 2019 are included as Exhibit 8. CONCLUSION: A. Recommendation Based on the direction of the Town Council Policy Committee, and recommendation of the Historic Preservation Committee, staff recommends that the Planning Commission review the information included in the staff report and forward a recommendation to the Town Council for approval. The Commission should also include any comments or recommended changes to the draft Ordinance in taking the following actions: PAGE 5 OF 5 SUBJECT: AMENDMENTS TO THE TOWN CODE REGARDING DEMOLITION/A-19-003 MAY 17, 2019 CONCLUSION (continued): 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)] (Exhibit 1); 2. Make the required finding that the amendments to the Town Code (Zoning Regulations) are consistent with the General Plan (Exhibit 1); and 3. Forward a recommendation to the Town Council for approval of the proposed amendments to Chapter 29 of the Town Code (Exhibit 7). B. Alternatives Alternatively, the Commission can: 1. Forward a recommendation to the Town Council for approval of the amendments to Chapter 29 of the Town Code with modifications; or 2. Forward a recommendation to the Town Council for denial of the proposed amendments to Chapter 29 of the Town Code; or 3. Continue the matter to a date certain with specific direction. EXHIBITS: 1. Required Findings (one page) 2. Town Council Policy Committee Minutes, February 26, 2019 (three pages) 3. Town Council Policy Committee Report, February 26, 2019 (12 pages) 4. Town Council Policy Committee Report, April 9, 2019 (10 pages) 5. Historic Preservation Committee Minutes, April 24, 2019 (six pages) 6. Historic Preservation Committee Report, April 24, 2019 (three pages) 7. Draft Amendments to Chapter 29 of the Town Code (one page) 8. Public Comments Received before 11:00 a.m., Friday, May 17, 2019 N:\DEV\PC REPORTS\2019\Demolition Regulations 05-22-19.docx