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Staff Report.Draft 2040 General Plan PREPARED BY: Jennifer Armer, AICP Planning Manager Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Community Development 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: 06/20/2022 ITEM NO: 1 DATE: June 15, 2022 TO: Mayor and Town Council FROM: Laurel Prevetti, Town Manager SUBJECT: Conduct a Public Hearing, Review the Planning Commission Recommendations, Determine Any Additional Modifications, Adopt the Draft 2040 General Plan, and Certify the Final Environmental Impact Report. RECOMMENDATION: Conduct a public hearing, review the Planning Commission recommendations, determine any additional modifications, adopt the Draft 2040 General Plan (Attachment 6), and certify the Final Environmental Impact Report (Final EIR) (Attachment 5). EXECUTIVE SUMMARY: The Draft 2040 General Plan is a result of the Town Council’s direction to update the existing 2020 General Plan to address emerging trends and recent State laws, and consider new issues relevant to the Town. Over the course of two and a half years and 35 meetings, the General Plan Advisory Committee (GPAC) worked with staff and consultants to create an updated General Plan. The GPAC reviewed each General Plan Element to ensure a forward-looking document that is consistent and accessible. The Draft 2040 General Plan is the result of extensive work and outreach as described in this report. After the completion of the environmental review process, the Planning Commission conducted four meetings on April 13, April 25, April 27, and May 2, 2022, for consideration of the Draft 2040 General Plan. It unanimously recommended that the Town Council adopt the Draft 2040 General Plan with modifications and adopt the Final EIR. PAGE 2 OF 10 SUBJECT: Draft 2040 General Plan and Final EIR DATE: June 15, 2022 EXECUTIVE SUMMARY (continued): The Town Council is the final decision-making body for both the Final EIR and the Draft 2040 General Plan. The Town Council has full discretion to modify the Draft 2040 General Plan, including and not limited to its goals, policies, implementation programs, and housing numbers. After listening to public testimony, the Council may wish to work through the Planning Commission recommendations (Attachment 7) to provide structure for its deliberations. This would involve considering modifications to the Vision and Guiding Principles and working through individual Elements, leaving the Land Use and Community Design Elements last. BACKGROUND: On February 6, 2018, Town Council began the process of updating the 2020 General Plan with a discussion of the scope and process for the General Plan update. At that meeting, the Town Council indicated that the General Plan is serving the community well, and an update provides the opportunity to refine the General Plan, address emerging trends and recent State laws, and consider new issues. Over the following four years, the General Plan update process has included multiple community engagement opportunities, meetings with the Planning Commission and Town Council, and the following key milestones: • On April 17, 2018, the Town Council established the General Plan Update Advisory Committee (GPAC) and identified initial guiding principles to support their work. • On July 9, 2018, after approval by the Town Council, the Town Manager executed an agreement with Mintier Harnish Planning Consultants for preparation of the General Plan update and Draft EIR. • On October 30, 2018, the GPAC held its first meeting. • On March 15, 2019, the Background Report (available online here: http://losgatos2040.com/documents.html) was released. • On June 20, 2019, the GPAC reviewed the Issues, Opportunities, and Constraints Report (available online here: http://losgatos2040.com/documents.html). • On August 20, 2019, the Town Council adopted the General Plan Vision and Guiding Principles (available online here: http://losgatos2040.com/documents.html). • In December 2019, the Land Use Alternatives Report (available online here: http://losgatos2040.com/documents.html) was released. • On March 3, 2020, the GPAC started review and discussion of the initial drafts of individual elements of the General Plan. • On April 7, 2020, the Town Council approved the Preferred Land Use Alternatives Framework (available online here: http://losgatos2040.com/documents.html). PAGE 3 OF 10 SUBJECT: Draft 2040 General Plan and Final EIR DATE: June 15, 2022 BACKGROUND (continued): • On November 17, 2020, the Town Council discussed and provided direction on the Draft Land Use and Community Design Elements. • On May 6, 2021, the GPAC recommended approval of the Draft 2040 General Plan (available online here: http://losgatos2040.com/documents.html). • On June 18, 2021, the Draft 2040 General Plan was released for public review. • On July 31, 2021, the Draft EIR (available online here: http://losgatos2040.com/documents.html) was released for public review. The public comment period ended on September 13, 2021. • On September 20, 2021, the Town Council and Planning Commission held a Joint Study Session for discussion of the Draft 2040 General Plan. • On November 19, 2021, the revised Notice of Completion and Availability was reissued along with a revised Chapter 4.15, Transportation, and Executive Summary of the Draft EIR (available online here: http://losgatos2040.com/documents.html) for a reopened public review period which ended on January 8, 2022. • On December 7, 2021, the Town Council held a Study Session for discussion of housing growth options and related analyses for Planning Commission and Town Council consideration of the Draft 2040 General Plan. • On March 24, 2022, the Final EIR was published online (available here: http://losgatos2040.com/documents.html). • On April 13, April 25, April 27, and May 2, 2022 Planning Commission considered and recommended approval of the Draft 2040 General Plan with modifications and certification of the Final EIR (staff report materials, meeting minutes, and a summary of recommendation available here: http://losgatos2040.com/participate/general.html). Over the course of two and a half years and 35 meetings, the GPAC worked with staff and the consultants to create an updated General Plan. The GPAC reviewed each General Plan Element to ensure a forward-looking document that is consistent and accessible. Each Element was considered over multiple meetings (between two and five GPAC meetings per Element) with the GPAC providing comments to staff and the consultant, and then further review and direction on the implementation of those comments in a revised draft of each Element. The Draft 2040 General Plan (previously provided and referenced here as Attachment 1) is the result of this extensive work and outreach. Additional outreach activities conducted throughout the process have included: the Town’s website and weekly newsletter; social media posts; online engagement activities; newsletters; two in-person community workshops; numerous in-person and online community meetings; handouts and posters at the Library; information on the Town’s webpage; information in the email signature of Planning Division staff; a Town-wide mailer; and informational booths at the farmers market, the Library, Spring into Green, and Music in the Park. PAGE 4 OF 10 SUBJECT: Draft 2040 General Plan and Final EIR DATE: June 15, 2022 BACKGROUND (continued): On April 13, 2022, the Planning Commission received public comments on the Draft 2040 General Plan and Final EIR, and began the review of the Draft 2040 General Plan. The April 13, 2022 staff report (Attachment 8) included information on the GPAC recommendation, all written public comments received after the final meeting of the GPAC, as well as the following topics, as requested by Town Council: • Housing units; • Community engagement; • Missing Middle Housing; • Senate Bill 9; • Plan timeframe; • Declining California population; • Suggestions from public comments; and • Additional changes recommended by staff and the California Board of Forestry. The review of the Draft 2040 General Plan and consideration of the Final EIR continued on April 25, April 27, and May 2, 2022, for a total of 14 and a half hours of deliberations. At the May 2, 2022 meeting, the Planning Commission unanimously recommended approval of the Draft 2040 General Plan with modifications, and recommended certification of the Final EIR. DISCUSSION: A. General Plan Update Advisory Committee On May 6, 2021, the GPAC recommended approval of the Draft 2040 General Plan. The discussion at this meeting also included a recommendation for some modifications to the Vision and Guiding Principles to better reflect the direction developed over the previous years’ work. These changes are shown in Attachment 8, Exhibit 6 and summarized in Attachment 8, Exhibit 7. Planning Commission’s recommendation supported these modifications. B. Planning Commission The Planning Commission’s deliberations on the Draft 2040 General Plan and Final EIR occurred on April 13, April 25, April 27, and May 2, 2022, and were based on the materials provided in the staff reports (Attachments 8, 9, 10, 12, 13, 15, 17, and 18), particularly Exhibit 7 to the April 13, 2022 Planning Commission staff report. Verbatim minutes are included as Attachments 11, 14, 16, and 19. PAGE 5 OF 10 SUBJECT: Draft 2040 General Plan and Final EIR DATE: June 15, 2022 DISCUSSION (continued): On Monday, May 2, 2022, the Planning Commission completed its 14 and a half hours of deliberations on the Draft 2040 General Plan and Final EIR with a unanimous recommendation to the Town Council to adopt the Draft 2040 General Plan with modifications and certify the Final EIR. The bulk of the Planning Commission’s discussion was spent working towards a consensus on housing numbers. An informational memorandum (Attachment 20) was prepared, provided to the Town Council, and posted online in May that summarized the Commission’s recommendations. Attachment 7 is a full description of the modifications recommended by Planning Commission, without the references to Planning Commission’s Exhibit 7 that were part of the original motions, and with suggested wording for the new definitions that Planning Commission recommended be included. C. Potential Housing Buildout As a result of the recommended modifications to the residential densities in the Land Use Element, the General Plan Residential Buildout table (Table 3-1 on page 3-4 of the Draft 2040 General Plan, available: www.losgatos2040.com) would be modified as follows: Land Use Designation Density Range (du/ac) Typical Density (du/ac) Assumed Redevelopment New Housing (Vacant Land) New Housing (Redevelopment) LDR Low Density Residential 1 to 10 10 5% 230 56 MDR Medium Density Residential 14 to 22 18 10% 201 302 HDR High Density Residential 30 to 40 36 15% 110 268 NC Neighborhood Commercial 10 to 20 18 10% 26 91 CC Community Commercial 20 to 30 26 15% 0 156 MU Mixed-Use 30 to 40 36 20% 126 605 CBD Central Business District 20 to 30 26 15% 21 113 Subtotal 714 1,591 Housing Units, New and Redeveloped 2,305 Housing Units, ADUs 500 Housing Units, Existing Projects 475 TOTAL NEW THROUGH 2040 3,280 PAGE 6 OF 10 SUBJECT: Draft 2040 General Plan and Final EIR DATE: June 15, 2022 DISCUSSION (continued): As noted in the April 13, 2022 Planning Commission staff report, the Town’s Regional Housing Needs Allocation (RHNA) is 1,993 dwelling units plus a recommended 15 percent buffer, resulting in 2,292 units for the eight-year Housing Element. If one were interested to understand the contribution of accessory dwelling units (ADUs) and existing projects towards the eight-year RHNA, then at a minimum, 300 ADUs and 400 units of Existing Projects should be removed prior to making a comparison. As a result, the potential residential buildout for the eight-year period based on the Planning Commission recommendation would be 2,580 units, which is 288 housing units above the RHNA plus buffer, instead of the 746 excess units noted in the April 13, 2022 staff report for the Draft 2040 General Plan recommended by the GPAC. This reduces the excess units by more than half. Please note that the table does not include the potential for growth through new homes on properties in the Hillside Residential designation because the 116 units noted in previous documents is based on acreage of undeveloped lots, with no consideration of land slope or other constraints, and the Draft 2040 General Plan does not include any changes to the current regulations in this designation. Please note the calculations have not taken into consideration that the Town’s zoning regulations do currently allow housing as part of a mixed-use project in the Office zone through a Conditional Use Permit, even though the Office Professional General Plan designation does not specify if housing is allowed or not. It is therefore not yet been determined whether residential could now be prohibited in these zones, due to constraints imposed by Senate Bill 330. If residential has to continue to be allowed in the Office zone, an additional 114 units would be added back based on an existing typical density of 18 dwelling units per acre. The Town Council has full discretion to modify the Draft 2040 General Plan, including and not limited to its goals, policies, implementation programs, and housing numbers. If the Council wishes to reduce the housing capacity of the Draft 2040 General Plan further, please refer to Attachment 8 page 6 which details additional reduction options. PUBLIC COMMENT: Written comments received since the completion of the work by the GPAC are included as attachments to this report, as described here: • Written comments received between 11:01 a.m., Thursday, May 6, 2021, and 11:00 a.m., Monday, September 20, 2021, were provided with the written staff report materials for the September 20, 2021 Town Council and Planning Commission Joint Study Session, and are provided again here as Attachment 8, Exhibit 9. PAGE 7 OF 10 SUBJECT: Draft 2040 General Plan and Final EIR DATE: June 15, 2022 PUBLIC COMMENT (continued): • Written comments received on the Draft EIR are included, with responses to comments, in the Final EIR, and referenced here as Attachment 4. • Written comments received between 11:01 a.m., Monday, September 20, 2021, and 11:00 a.m., Thursday, April 7, 2022, are included as Attachment 8, Exhibit 10. • Written comments received between 11:01 a.m., Thursday, April 7, 2022, and 11:00 a.m., Monday, April 11, 2022, are included as Attachment 9, Exhibit 11. • Written comments received between 11:01 a.m., Monday, April 11, 2022, and 11:00 a.m., Wednesday, April 13, 2022, are included as Attachment 10, Exhibit 13. • Written comments received between 11:01 a.m., Wednesday, April 13, 2022, and 11:00 a.m., Friday, April 22, 2022, are included as Attachment 12, Exhibit 15. • Written comments received between 11:01 a.m., Friday, April 22, 2022, and 11:00 a.m., Monday, April 25, 2022, are included as Attachment 13, Exhibit 16. • Written comments received between 11:01 a.m., Monday, April 25, 2022, and 11:00 a.m., Monday, May 2, 2022, are included as Attachment 18, Exhibit 18. • Written comments received between 11:01 a.m., Monday, May 2, 2022, and 11:00 a.m., Wednesday, June 15, 2022, are provided as Attachment 23. As requested by Town Council, a summary of the questions asked at the September 20, 2021, and December 7, 2021, Study Sessions is included as Attachment 21 with responses. A collection of all of the Breaking It Down Series published between July 30, 2021, and March 11, 2022, to respond to questions and increase awareness of the content of the Draft 2040 General Plan is included as Attachment 22. ENVIRONMENTAL ASSESSMENT: A Notice of Completion and Availability of the Draft EIR (previously provided and referenced here as Exhibit 2) for the project was circulated for 45 days commencing on July 30, 2021, and concluding on September 13, 2021 at 5:00 p.m. Written comments were received by the Community Development Department. A Planning Commission public hearing to receive oral comments was held during the review period on September 8, 2021. During the review of comments and the preparation of the Final EIR, the Town became aware of a procedural error in the original Notice of Completion and Availability and also noted that Appendix C erroneously included a draft rather than a final Transportation Analysis. Additionally, Chapter 4.15, Transportation, of the EIR was revised to elaborate on transit impacts and cumulative VMT impacts. Even though the content changes were minor, the Town believed to provide maximum clarity, it was important to recirculate the Transportation Analysis of the Draft EIR and its Appendix, as well as the Executive Summary which includes a PAGE 8 OF 10 SUBJECT: Draft 2040 General Plan and Final EIR DATE: June 15, 2022 ENVIRONMENTAL ASSESSMENT (continued): summary of transportation impacts (previously provided and referenced here as Exhibit 3). Accordingly, the Town of Los Gatos reissued the Notice of Completion and Availability of the Draft EIR, and formally recirculated Chapter 4.15, Transportation and Appendix C, Transportation Analysis for the Draft EIR, as well as the Executive Summary. The reopened public review period ran from Friday, November 19, 2021, to at 5:00 p.m. on Friday, January 7, 2022. A public hearing to receive comments on the revised Draft EIR was held on December 8, 2021. During this additional 45-day public review period, written comments were received and are included, along with response to all comments from the initial comment period, in the Final EIR (previously provided and referenced here as Exhibit 3). The analysis of the Draft EIR identified significant and potentially significant impacts in the following environmental issue areas: • Air Quality; • Cultural Resources; • Geology and Soils; • Greenhouse Gas Emissions; • Noise; and • Transportation. Mitigation measures are proposed in all of these subject areas. Not all of the potential impacts could be mitigated to a less than significant level and therefore, the following topic areas were found to have significant unavoidable impacts: Greenhouse Gas Emissions; and Transportation. The Town is the Lead Agency under the California Environmental Quality Act (CEQA) for the environmental review process for the projects, including the Draft 2040 General Plan, that are proposed within its jurisdiction. When a Lead Agency finds that there are impacts that are significant and unavoidable, CEQA requires preparation of Findings of Fact and a Statement of Overriding Considerations (Attachment 5, Exhibit A). The Town Council is the deciding body on both the Final EIR and the Draft 2040 General Plan. CONCLUSION: The Draft 2040 General Plan is a result of the Town Council’s direction to update the existing 2020 General Plan to address emerging trends and recent State laws, and consider new issues relevant to the Town. Over the course of two and a half years and 35 meetings, the GPAC worked with staff and the consultant to create an updated General Plan. The GPAC reviewed each General Plan Element to ensure a forward-looking document that is consistent and PAGE 9 OF 10 SUBJECT: Draft 2040 General Plan and Final EIR DATE: June 15, 2022 CONCLUSION (continued): accessible. The Draft 2040 General Plan is the result of extensive work and outreach as described in this report. All additional comments received on the Draft 2040 General Plan are included as Attachments as described in this report. The Final EIR, which includes all comments received on the Draft EIR as well as the responses to the comments and any changes to the EIR is contained in Attachment 4. After the completion of the environmental review process, the Planning Commission conducted four meetings on April 13, April 25, April 27, and May 2, 2022, for consideration of the Draft 2040 General Plan. It unanimously recommended that the Town Council adopt the Draft 2040 General Plan with modifications and adopt the FEIR. In conclusion, based on the GPAC and Planning Commission's recommendations, staff recommends that the Town Council: • Receive public comments; • Review the Draft 2040 General Plan (Attachment 1) and recommended modifications from the Planning Commission (Attachment 7); • Consider additional modifications or changes to the Planning Commission’s recommendations; • Consider the Final EIR (Attachments 2 through 4) and Findings of Fact and a Statement of Overriding Considerations (Attachment 5, Exhibit A); and • Adopt a resolution (Attachment 5) to certify the Final EIR; and • Adopt a resolution (Attachment 6) to adopt the Draft 2040 General Plan. ALTERNATIVES: Alternatively, the Town Council may: 1. Certify the Final EIR and adopt the Draft 2040 General Plan with additional or different modifications; or 2. Continue consideration of the Draft 2040 General Plan to a date certain with specific direction. COORDINATION: The preparation of the Draft 2040 General Plan involved all Town Departments and most Town Commissions. The Community Development Department coordinated with the Town PAGE 10 OF 10 SUBJECT: Draft 2040 General Plan and Final EIR DATE: June 15, 2022 COORDINATION (continued): Attorney’s Office, Parks and Public Works Department, and the Santa Clara County Fire Department in the review of the final recommendation from Planning Commission. FISCAL IMPACT: Funding for the General Plan update comes from the General Plan update fund. ATTACHMENTS: Attachments previously received under separate cover: (available online here: http://losgatos2040.com/documents.html) 1. Draft 2040 General Plan 2. Draft EIR 3. Revised NOA and Transportation Section 4. Final EIR Attachments with this Staff Report: 5. Draft Resolution Certifying the EIR for the 2040 General Plan, with Exhibit A Draft Findings of Fact and Statement of Overriding Considerations 6. Draft Resolution Approving the 2040 General Plan 7. Planning Commission Recommendation 8. April 13, 2022 Planning Commission Staff Report, with Exhibits 5-10 9. April 13, 2022 Planning Commission Addendum Report, with Exhibit 11 10. April 13, 2022 Planning Commission Desk Item Report, with Exhibits 12-13 11. April 13, 2022 Planning Commission Verbatim Minutes 12. April 25, 2022 Planning Commission Staff Report, with Exhibits 14-15 13. April 25, 2022 Planning Commission Desk Item Report, with Exhibits 16 14. April 25, 2022 Planning Commission Verbatim Minutes 15. April 27, 2022 Planning Commission Desk Item Report, with Exhibits 17 16. April 27, 2022 Planning Commission Verbatim Minutes 17. May 2, 2022 Planning Commission Staff Report 18. May 2, 2022 Planning Commission Desk Item Report, with Exhibits 18 19. May 2, 2022 Planning Commission Verbatim Minutes 20. Planning Commission Recommendation Informational Memo 21. Study Session Questions and Responses 22. Breaking it Down Series 23. Public Comment received between 11:01 a.m., Monday, May 2, 2022, and 11:00 a.m., Wednesday, June 15, 2022