Desk Item #4wh f MEETING DATE: 11/4/13
ITEM NO: 1
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COUNCIL AGENDA REPORT DESK ITEM
DATE: November 4, 2013
TO: MAYOR AND TOWN COUNCIL
FROM: GREG LARSON, TOWN MANAGER
SUBJECT: INTRODUCTION OF A GENERAL PLAN AMENDMENT TO INCLUDE THE
AFFORDABLE HOUSING OVERLAY ZONE SITES IN THE HOUSING
ELEMENT TECHNICAL APPENDIX HOUSING SITES INVENTORY•
AMENDING THE TOWN CODE TO INCORPORATE THE AFFORDABLE
HOUSING OVERLAY INTO DIVISION 5, ARTICLE VIII OVERLAY ZONES
AND HISTORIC PRESERVATION; ADOPTION OF AFFORDABLE
HOUSING OVERLAY ZONE DESIGN GUIDELINES; AND APPLICATION
OF AN AFFORDABLE HOUSING OVERLAY TO FIVE PROPERTIES
GENERALLY LOCATED AT:
A. KNOWLES DRIVE, EAST OF WINCHESTER BOULEVARD, APN 424-
32 -077
B. LOS GATOS LODGE, 50 LOS GATOS SARATOGA ROAD, APN 529 -24-
032
C. LOS GATOS LODGE, 50 LOS GATOS SARATOGA ROAD, APN 529 -24-
001
D. HIGGINS BUSINESS PARK, 400 BLOSSOM HILL ROAD, APN 529 -16-
071
E. LOS GATOS OAKS APARTMENTS, 517 BLOSSOM HILL ROAD, APN
529 -16 -042
REMARKS:
After the staff report for this item was prepared, a Council Member asked staff to address the
following items related to the correspondence submitted by Lee Quintana on October 23, 2013
(Attachment 13):
• The timing of the approvals required for the Affordable Housing Overlay Zone
implementation
PREPARED BY: Sandy L. Baily, Director of Community Development
Reviewed by: l a Assistant Town Manager —&L Town Attorney Finance
N: \DEV \TC REPORTS\2013AHOZ TC I14 -13 (DESK).doex Reformatted: 5/30/02
PAGE
MAYOR AND TOWN COUNCIL
SUBJECT: Affordable Housing Overlay Zone /A -12 -003/ GPA -13 -003
November 4, 2013
• "Significant component" definition related to affordable housing units provided in a
project
• Density bonus and developer concessions noted in the AHOZ Guidelines
• Setback references in the AHOZ Guidelines vs. the Zoning Ordinance
• The use of the terms "Standards" vs. "Guidelines"
Additionally, staff did not provide a draft resolution for certification of the Addendum EIR. A
draft resolution is included with this desk item as Attachment 14.
Timing of AHOZ Approvals
The Town's Housing Element was adopted on March 5, 2012, and certified by the State Housing
Community Development Department (HCD) on September 20, 2012. The Housing Element has
an implementation timeframe for the Affordable Housing Overlay Zone (AHOZ) of within one
year of adoption. Due to the late adoption and certification dates in 2012, the Town's HCD
reviewer encouraged the Town during telephone conversations in February 2013 to implement
the AHOZ as soon as possible within the current Housing Element period to avoid rolling over
"unmet" (i.e. unplanned for) Regional Housing Needs Allocation (RHNA) units into the next
Housing Element period beginning on January 1, 2014.
In order to implement the AHOZ as noted above and as referenced in the Housing Element, the
Town Council must act on the following items before December 31, 2013:
1) Adoption of the General Plan Amendment establishing the AHOZ sites in its Technical
Appendix exhibits;
2) Adoption of the Zoning Ordinance Amendments codifying the AHOZ overlay into the
Zoning Regulations Chapter of the Town Code;
3) Adoption of the Zoning Map changes designating the AHOZ sites; and
4) Developing AHOZ Design Guidelines.
Significant Component of Affordable Housing in a Project
The AHOZ Design Guidelines do not define "significant component" in the text references to a
development's provision of affordable units. Staff believes this was done to afford the Planning
Commission and Town Council as much flexibility as possible during their reviews of future
projects and so the project's merits can be reviewed on a case by case basis.
If Council desires to establish a definition for a "significant component" of affordable housing in
a project there are three possible thresholds that staff can recommend for Council consideration:
1) A project that provides affordable units in excess of the amount required by the Town's
BMP lnclusionary Ordinance (e.g. 10 -20% of total units);
2) A project that provides at least 50% of the total units as affordable as required by the
AHOZ; or
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: Affordable Housing Overlay Zone /A -12 -003/ GPA -13 -003
November 4, 2013
3) A project that provides 20 -35% of the total units as affordable as required by the the
adopted Density Bonus Ordinance.
Densitv Bonus and Developer Concessions Noted in the AHOZ Guidelines
The AHOZ Design Guidelines reference potential developer concessions and possibly additional
density bonus pending Council decisions on the AHOZ Zoning Ordinance items. Lee Quintana's
comments assume that Town Council will accept the General Plan Committee and Planning
Commission recommendations to delete the Density Bonus concession. The staff report
recommends the Council affirm the Planning Commission's approval recommendation but also
recommends adoption of a revised resolution that authorizes staff to amend the Draft AHOZ
design guidelines to incorporate the Town Council's action and to maintain consistency with the
AHOZ Zoning Ordinance amendments.
Setback References in the AHOZ Guidelines vs. the Zoning Ordinance
Lee Quintana's correspondence notes that she would like the AHOZ Design Guidelines setbacks
to be as specific as AHOZ Zoning Ordinance amendments. Staff informed Quintana that the
Zoning Ordinance which is codified in the Town Code as Zoning Regulation sets the legal
building envelope requirements for property and is higher in legal hierarchy than a Design
Guideline document which typically has less specificity. The AHOZ Design Guidelines are
consistent with the Town's commercial, residential and hillside residential design guidelines in
not noting specific zoning development standards.
The proposed AHOZ Zoning Ordinance amendment has specific setbacks of each proposed
AHOZ designated site. The AHOZ Design Guidelines do not have defined numerical setbacks
for each potential AHOZ site's yards but have references to property features and characteristics
(e.g. mature landscaping, topography, etc.). A property's zoning designation is referenced on the
Zoning Map and the associated Zoning Ordinance of Town Code codifies the legal yard setbacks
for a property. As discussed above, staff does not believe additional setback edits in the design
guidelines are necessary.
Lee Quintana noted verbally to staff that she believes the AHOZ design guidelines should have
the same specificity as the Draft North 40 Specific Plan since a member of the public may read
the AHOZ Design Guidelines before reading the AHOZ zoning. Staff noted that the AHOZ
Design Guidelines are not a Specific Plan which is a combination of General Plan and Zoning
standards for a specific planning area. Staff further noted that the common practice of most
developers and property owners is to refer to the General Plan and Zoning before reading Design
Guidelines because the former documents establish the legal framework for the potential land
use entitlements for a given property.
PAGE
MAYOR AND TOWN COUNCIL
SUBJECT: Affordable Housing Overlay Zone /A -12 -003/ GPA -13 -003
November 4, 2013
Standards vs. Guidelines
The AHOZ Design Guidelines document uses the two terms irregularly in this draft. The
General Plan Committee spent approximately 6 -7 months in 2012 editing the document
paragraph by paragraph. The most recent efforts by the General Plan Committee only revised
text in the original draft related to the designation of specific AHOZ sites in deference to the
prior work of the past Committee members.
If desired by Council, staff can revise the draft document and return recommended edits that
have a more consistent useage of the two terms for its December meeting. As an alternative, the
Council can also approved the draft as noted and direct staff to include edits for more consistent
usage of the two terms in the document prior to distribution or printing.
ATTACHMENTS:
Received Under Separate Cover
1. Staff Report to the Planning Commission for the meeting of October 9, 2013
2. Copy of Fred Lyon's speaker handout from the Planning Commission meeting of October
9, 2013
Received with Town Council Report
3. Verbatim Minutes to the Planning Commission meeting of October 9, 2013
4. Required Findings
S. Draft Zoning Ordinance Amendment
6. Draft Resolution for General Plan Amendment GP -13 -003
7. Ordinance Applying the AHOZ Designation to APN: 424 -32 -077
8. Ordinance Applying the AHOZ Designation to APN: 529 -24 -032
9. Ordinance Applying the AHOZ Designation to APN: 529 -24 -001
10. Ordinance Applying the AHOZ Designation to APN: 529 -16 -071
11. Ordinance Applying the AHOZ Designation to APN: 529 -16 -042
12. Draft Resolution Approving Affordable Housing Overlay Zone Design Guidelines
13. Correspondence from Lee Quintana received October 23, 2012
Received with this Desk Item Report
14. Draft Resolution for Addendum EIR (Exhibit 10 of Attachment 1)
SLB:EO:ah
RESOLUTION NO.
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
ADOPTING AN ADDENDUM TO THE GENERAL PLAN 2020
FINAL ENVIRONMENTAL IMPACT REPORT
WHEREAS, the Town Council of the Town of Los Gatos certified and adopted a Final
Environmental Impact Report (FEIR) for the 2020 General Plan by Resolution 2010 -091; and
WHEREAS, the Town Council of the Town of Los Gatos adopted the 2007 - 2014
Housing Element by Resolution 2012 -008; and
WHEREAS, Housing Element Action Item HOU -2.1 calls for the establishment of an
Affordable Housing Overlay Zone (AHOZ) as the principal means for meeting the Town's
regional share of housing needs allocation (RHNA) for persons and families of low and moderate
income; and
WHEREAS, the AHOZ as revised and recommend by the Town's General Plan
Committee on September 25, 2013 and Planning Commission on October 9, 2013 encompass
potential projects with less intensive development and less impacts than what was originally
considered in the 2020 General Plan FEIR; and
WHEREAS, Pursuant to Section 21166 of the California Environmental Quality Act
(CEQA) and Section 15162 of the State CEQA Guidelines, after an EIR has been certified for a
project, if some minor technical changes to the previously certified EIR are necessary, preparation
of an Addendum to the EIR is appropriate and a supplemental EIR is not required unless there is
substantial evidence that modifications to the project would substantially increase the severity of
the impacts identified in the previous EIR; and
WHEREAS, CEQA defines substantial evidence as facts, reasonable assumptions
predicated upon facts and expert opinion supported by facts; and
WHEREAS, the Town has prepared an Addendum to the 2020 General Plan FEIR in
accordance with CEQA Guidelines Section 15162; and
WHEREAS, the Addendum provided a detailed analysis that determined that the approval
of the AHOZ would not involve new significant environmental effects or a substantial increase in
ATTACHMENT 14
the severity of previously identified significant effects beyond those already indentified in the
certified FEIR; and
WHEREAS, on October 9, 2013, the Planning Commission recommended approval of the
Addendum to the 2020 General Plan FEIR the Town Council;
NOW, THEREFORE, BE IT RESOLVED: the Town Council of the Town of Los Gatos
adopts the Town of Los Gatos General Plan 2020 FEIR Addendum attached hereto as Exhibit A.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los
Gatos, California, held on the _ day of November, 2013, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA