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135 Riviera Drive�°W►+ 0, MEETING DATE: 01/17/12 a ITEM NO; 4 � cap °S COUNCIL AGENDA REPORT DATE: January 11, 2012 TO: MAYOR AND TOWN COUNCIL FROM: GREG LARSON, TOWN MANAGER SUBJECT: INTRODUCTION OF AN ORDINANCE FOR PLANNED DEVELOPMENT APPLICATION PD -10 -001 AND NEGATIVE DECLARATION ND -10 -001. PROJECT LOCATION: 135 RIVIERA DRIVE. PROPERTY OWNER: THE SOBRATO ORGANIZATION. APPLICANT: TIM STEELE A. CONSIDER A PLANNED DEVELOPMENT APPLICATION FOR RENOVATION AND EXPANSION OF AN EXISTING APARTMENT COMPLEX (RIVIERA TERRACE). APNs 529 -13 -016, 529 -09 -031 AND 034. B. CONSIDER ADOPTION OF MITIGATED NEGATIVE DECLARATION AND MITIGATION MONITORING PLAN, RECOMMENDATION After opening and closing the public hearing, and asking the Clerk Administrator to read the title of the proposed ordinance, it is recommended the Town Council: 1. Accept the Planning Commission's findings and recommendations in the form of meeting minutes (Attachments 6, 7, and 12). 2. Follow the recommendation of the Planning Commission and deny Planned Development application PD -10 -001. 3. Adopt a resolution confirming the action (Attaclunent 19). ALTERNATIVES Alternatively the Council may: • Approve the application as follows: 1. Waive the reading of the proposed ordinance. 2. Adopt the Mitigated Negative Declaration (Exhibit 2 of Attachment 1) and the Mitigation Monitoring Plan (Attachment 14). PREPARED BY ; 0 Wendie R. Rooney, Director of Community Development Reviewed by: v ) Assistant Town Town Attorney Finance N: \DEV \TC REP0RTS\2012\Riviera135- PD.doc Reformatted: 5/30/02 PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: 135 Riviera Drive /PD -10 -001, ND -10 -001 January 11, 2012 3. Adopt findings supporting the zone change (Attachment 13), approve the application subject to the performance standards included in the Planned Development Ordinance, and introduce the ordinance of the Town of Los Gatos effecting the zone change from RM:12 -20 TO RM:12 -20:PD (Attachment 15). • Continue the project to a date certain with direction to the applicant for desired plan revisions. BACKGROUND The Riviera Terrace apartment complex was constructed in 1960. The complex includes 123 apartments (21 two - bedroom and 102 one - bedroom units) in three, three -story buildings, surface parking, a pool and open space area. The zoning allows up to 20 units per acre: 118 units are permitted based on the property size of 5.9 acres. The existing complex size of 123 units exceeds this maximum density by five units. The applicant has owned the property since 2001. A proposal to expand the apartment complex was considered by the Conceptual Development Advisory Committee (CDAC) on January 13, 2010 (see pages 4 and 5 of the July 13, 2011, report to Planning Commission; and Exhibit 7 to Attachment 1). At that time the proposal was to add 56 units. As plans were refined, the number of new units was reduced to 50. DISCUSSION A. Project Summary The applicant is requesting approval of the following: • Mitigated Negative Declaration (MND) and corresponding Mitigation Monitoring Plan (MMP); and • Planned Development to renovate the Riviera Terrace apartment complex and to construct 50 new units, inclusive of 25 affordable units (24 low income units and one moderate income unit). A detailed project description is included in the July 13, 2011, Planning Commission report (Attachment 1). The applicant is proposing that all of the affordable units will be existing renovated units. B. Density Town of Los Gatos General Plan The current zoning for this property allows up to 118 units. Applicant is proposing to provide 20% of low income level units for a total of 24 units (20% x 118 units = 23.4 units which is PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: 135 Riviera Drive /PD -10 -001, ND -10 -001 January 11, 2012 rounded up to 24 units). Applicant will also be providing l moderate income level unit. General Plan Policy HOU -13 states that below market price (affordable) units are not included or counted in the base density for a project. For this project, following GP Policy HOU -13, the maximum allowable density is 142 units (118 units per zoning district + 24 below market rate units). State Law Density Bonus State law requires a local jurisdiction to follow the density bonus statutes for residential projects that provide a specified minimum percentage of affordable units. The State law requires a density increase over the otherwise maximum allowable density of the local jurisdiction. As calculated in Section B.1.above, the maximum allowable density is 142 units. Under State law, once the applicant elects to provide 20% of low income affordable units, applicant is entitled, by right, to a 35% density increase over the maximum allowable density based on the commitment to provide the 24 low income units proposed in this project. Applicant is entitled to additional density of 42 units (118 x 35% = 41.3 units when rounded up as allowed by State law). Therefore, the potential number of units allowed for this project totals 182 units (118 + 24 + 42). In this project, the applicant is only requesting a total of 173 units. Applicant's request conforms to State law. Staff discussed this project with the State Department of Housing and Community Development (HCD) with respect to the request for increased density under State law provisions. HCD believes that Town's calculations are consistent with the requirements under State law. HCD staff also noted that it is more common that a developer would request financial assistance from a local jurisdiction for this type of affordable housing project. Applicant has not requested any Town subsidy for the project. C. Riparian Corridor A discussion on the riparian corridor is included in the September 14, 2011, Planning Commission staff report, beginning on page 4 (see Attachment 8). The Planning Commission expressed concern that details were not provided on the riparian restoration that was offered by the applicant. Following the Planning Commission meeting the applicant's biological consultant completed a detailed report on proposed enhancements to the creek and riparian canopy (see Attachment 16). Santa Clara Valley Water District (SCVWD) reviewed the report and made the following recommendations: • Mitigation of the sycamore tree needs to comply with the Guidelines and Standards for Land Use Near Streams for native riparian species used within or near the riparian corridor, i.e. the trees need to be sourced from Los Gatos Creek watershed stock. • The District is controlling giant reed along the reach of Los Gatos Creek that includes the project site. The District is planning on another season or two of chemical treatment of remaining giant reed growth. Any planting that occurs while the District is still PAGE 4 MAYOR AND TOWN COUNCIL SUBJECT: 135 Riviera Drive /PD -10 -001, ND -10 -001 January 11, 2012 controlling giant reed at the site needs to allow for the District's continued activities or the property owner may take on the responsibility for controlling giant reed at the site. • California bay should be deleted from the planting list, Table 1. • To be more consistent with the Guidelines and Standards for Land Use Near Streams, the seed list, Table 2, should require the use of seed produced from selections originally collected in Santa Clara County, and at a minimum, from the SF Bay Area. • The District continues to recommend an increased buffer to the creek, including providing protection of the existing riparian trees greater than the proposed parking space sized planter areas within the parking lot. The first four recommendations can be incorporated into the restoration plan. The recommendation to increase the buffer to the creek cannot easily be accommodated. Staff believes that the proposed restoration plan is appropriate and should be supported for the following reasons: 1. Most of the parking area that parallels the creek already exists, and the emergency vehicle turnaround that encroaches into the riparian canopy is a required element. The northern end of the expanded parking area could be reduced as discussed on page 4 of the September 14, 2011, Planning Commission staff report (Attachment 8). 2. No new construction or paving will occur beyond the existing chain link fence that borders the creek area. 3. Pavers will be used in drive aisles and areas with uncovered parking spaces to reduce impervious surfaces and to off -set the addition of the pavement at the east end of the site. 4. A new drainage system will be installed to treat runoff before it enters the creek (water currently flows from the carport roof and across the paved areas untreated). 5. New lighting will be far less intrusive on the creek area (existing flood lights will be removed and replaced with low level, down directed fixtures). 6. The project will significantly enhance and improve the riparian corridor along the Riviera Terrace property. Although SCVWD believes the buffer should be increased, the Town has the discretion to interpret the Guidelines and Standards for Land Use Near Streams, and to determine whether strict adherence is warranted based on site characteristics and the merits of the project. If the Council decides to approve the project, staff recommends that the following performance standard be added to the PD Ordinance: The following recommendations of the Santa Clara Valley Water District shall be incorporated into the creek restoration plan; a. Mitigation of the sycamore tree shall comply with the Guidelines and Standards for Land Use Near Streams for native riparian species used within or near the riparian corridor. PAGE 5 MAYOR AND TOWN COUNCIL SUBJECT: 135 Riviera Drive /PD -10 -001, ND -10 -001 January 11, 2012 b. Any planting that occurs while the District is still controlling giant reed at the site needs to allow for the District's continued activities, or the property owner may take on the responsibility for controlling giant reed at the site. c. California bay shall be deleted from the planting list (Table 1). d. The seed list (Table 2) should include the use of seed produced from selections originally collected in Santa Clara County, and at a minimum, from the SF Bay Area. D. Planning Commission On July 13, 2011, the Planning Commission considered the subject application and continued the matter to August 10, 2011, directing the applicant to address concerns about proposed development within the riparian corridor. The Commission also discussed and expressed concern about the community benefit proposal and the lack of story poles on the project site. The application was again continued from August 10, 2011, to September 14, 2011, to allow additional time for staff and the applicant to address the Commission's concerns. On September 14, 2011, the Commission voted 6 -1 to recommend denial of the PD application and environmental documents, citing concerns about impact to the riparian corridor. Attachment 12 is a verbatim transcript of the Commission meeting. E. Public Comment The Planning Commission received public testimony from a number of Riviera Terrace residents at the July 13, 2011, public hearing. Several residents and members of the public spoke at the September 14, 2011, hearing. Verbatim transcripts of the Planning Commission hearings (Attachments 6 and 12) include the public testimony. ENVIRONMENTAL ASSESSMENT An Initial Study and Mitigated Negative Declaration (MND were prepared for the project by the Town's Environmental Consultant, Geier & Geier Consulting. The MND was circulated to relevant agencies, including local utility companies, Santa Clara Valley Water District (SCVWD), the State Department of Fish & Game, Regional Water Quality Control Board, Department of Water Resources, Caltrans, Office of Historic Preservation and the Native American Heritage Commission. The Town Council also received copies of the environmental documents at that time. The 30 -day public review period ended on April 6, 2011. Written comments were received from PG &E and SCVWD. The PG &E comments were relative to service to the site. A response to SCVWD comments is Exhibit 5 of Attachment 1. The areas of mitigation are within the following categories: • Air Quality • Biological Resources • Cultural Resources PAGE 6 MAYOR AND TOWN COUNCIL SUBJECT: 135 Riviera Drive /PD -10 -001, ND -10 -001 January 11, 2012 • Geology and Soils • Hydrology and water quality The Mitigation Monitoring Plan that specifies timing and staff responsible for implementation and oversight of the project mitigation measures (Attachment 14). Mitigations have also been incorporated as performance standards in the PD Ordinance (Attachment 15). CONCLUSION The proposed project will provide 25 affordable units, 24 of which will be available to low income households, and one to a moderate income household, plus 25 additional market rate units. The project meets the General Plan policy to encourage affordable housing units and meets State law and density bonus requirements. The applicant has presented detailed plans to demonstrate the merits of the proposed project, including high quality architecture and construction, extensive landscaping, and addition of desirable amenities to provide a better quality of life for residents of the Riviera Terrace apartment complex. The project will provide quality rental housing to the Town's housing stock which is consistent with the goals of the 2007 -2014 Housing Element. The new buildings will step with the terrain and will be lower in height than the existing buildings. The upgrades to the site and quality of the design will enhance the property and retain compatibility with the neighborhood. Mitigation measures have been included to ensure that the project will not result in any significant environmental impacts. The applicant has prepared a creek restoration plan in addition to required biological resources mitigation measures and has provided adequate evidence and support for allowing the parking lot expansion within the riparian canopy. The project will result in the restoration and enhancement of Los Gatos Creek as follows: • A new drainage and stormwater system will be installed so any runoff that flows into the creek will be treated. • Pervious pavers will be used in drive aisles and for uncovered parking spaces to increase on -site water percolation. • Invasive species will be removed as recommended by the Town's Biological Consultant (through the environmental review). • Planting of native riparian species will be done to restore the canopy and enhance the creek area. The Planting Program is being developed by HT Harvey Ecological Consultants. • Vines will be planted along the existing chain link fence that parallels the creek to create a "green screen" and provide more protection from human activity and lighting. • Exterior and landscape lighting will be modified to reduce glare and light intrusion into the creek area. Existing flood lights on the carports that are directed toward the creek will be removed. Low level, down directed fixtures will be installed. PAGE 7 MAYOR AND TOWN COUNCIL SUBJECT: 135 Riviera Drive /PD -10 -001, ND -10 -001 January 11, 2012 FISCAL IMPACT None ATTACHMENTS Received under separate cover 1. July 13, 2011, report to the Planning Commission with Exhibits 1 -12 2. July 13, 2011, Planning Commission desk item with Exhibits 13 -15 3. Presentation by Elizabeth O'Kane, received July 13, 2011 4. Petition from Monroe Court residents (one page), received July 13, 2011 5. Comments from Barry Minkin (three pages), received August 10 and September 14, 2011 6. July 13, 2011, Planning Commission verbatim minutes (33 printed pages) 7. August 10, 2011, Planning Commission verbatim minutes (four printed pages) 8. September 14, 2011, report to the Planning Commission with Exhibits 16 -24 9. September 14, 2011, addendum to the Planning Commission Report with Exhibit 25 10. September 14, 2011, Planning Commission Desk Item with Exhibits 26 -28 11. Applicant's presentation from September 14, 2011, Planning Commission meeting 12. September 14, 2011 Planning Commission verbatim minutes (43 printed pages) Received with this staff report 13. Required Findings and Considerations (one page) 14. Mitigation Monitoring Plan (eight pages) 15. Draft Planned Development Ordinance (26 pages) with zone change map 16. Report from Patrick J. Boursier (13 pages), HT Harvey Ecological Consultants, received October 5, 2011 17. Letter from Cox Castle Nicholson (four pages with attachments A, B and C), received December 21, 2011 18. Computer models (three sheets), received December 20, 2011 19. Resolution for denial Distribution cc: Tim Steele, The Sobrato Organization, 10600 N. DeAnza Boulevard, Suite 200, Cupertino, CA 95014 WRR:SD:ah N: \DEV \TC REPORTS\2012 \Riviera135- PD.doc THIS PAGE INTENTIONALLY LEFT BLANK