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Staff Report PREPARED BY: SALLY ZARNOWITZ, AIA, LEED AP Planning Manager Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Community Development Department 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: 01/16/2018 ITEM NO: 13 DATE: JANUARY 11, 2018 TO: MAYOR AND TOWN COUNCIL FROM: LAUREL PREVETTI, TOWN MANAGER SUBJECT: TOWN CODE AMENDMENT APPLICATION A-17-003. PROJECT LOCATION: TOWN WIDE. APPLICANT: TOWN OF LOS GATOS. CONSIDER AMENDMENTS TO CHAPTER 29 (ZONING REGULATIONS) OF THE TOWN CODE REGARDING ACCESSORY DWELLING UNITS. RECOMMENDATION: Introduce the draft Ordinance (Attachment 11), by title only, to amend Chapter 29 (Zoning Regulations) of the Town Code regarding accessory dwelling units. DISCUSSION: A. December 5, 2017 Town Council Hearing At the December 5, 2017 Town Council hearing, the Council received the staff report and considered comments from the public. The Council discussed the Planning Commission’s recommended amendments, and continued the item to January 16, 2018 with the direction outlined below. Each direction item is followed by a staff response. Questions for the Town Council are also included where further direction from the Town Council is requested by staff. Permitted zones  Allow accessory dwelling units in the R-D (Duplex Residential) zone. This change has been incorporated into the revised draft Ordinance (Attachment 11, page 6). The primary dwelling unit definition has also been changed to include PAGE 2 OF 6 SUBJECT: CONSIDER AMENDMENTS TO THE TOWN CODE REGARDING ACCESSORY DWELLING UNITS. TOWN CODE AMENDMENT/A-17-003 JANUARY 11, 2018 S:\COUNCIL REPORTS\2018\01-16-18\13 - Accessory Dwelling Units\Staff Report FINAL.docx 1/11/2018 4:15 PM DISCUSSION (Continued): two-family dwelling units (Attachment 11, pages 2 and 4). Stories  Allow an attached accessory dwelling unit as a second-story addition to a primary dwelling unit where a two-story primary dwelling unit exists. This change has been incorporated into the revised draft Ordinance (Attachment 11, page 6).  Allow a detached accessory dwelling unit as a second-story addition above an existing one-story accessory structure where a two-story primary dwelling unit exists. This change has been incorporated into the revised draft Ordinance (Attachment 11, pages 6 - 7). However, the change does not include an allowance for a new second story accessory dwelling unit above an existing one-story accessory structure in the HR (Hillside Residential) and RC (Resource Conservation) zones. Should the Council decide to allow a new second story accessory dwelling unit to be constructed above an existing one-story accessory structure in the HR and RC zones, a setback of no more than five feet from the side and rear lot lines could be required. Q: Should a second story accessory dwelling unit be allowed to be constructed above an existing one-story detached accessory structure in the HR and RC zones? Setbacks  Provide information on setbacks. Under new State law, local jurisdictions may require a setback of no more than five feet from the side and rear lot lines for a new detached accessory dwelling unit that is constructed above an accessory structure. Consistent with new State law, the revised draft Ordinance requires a setback of no more than five feet from the side and rear lot lines for a new accessory dwelling unit in the R-1, R-D, R-M, and R-1D zones (Attachment 11, page 6). The revised draft Ordinance requires a setback matching that required for a primary dwelling unit, from the side and rear lot lines, for a new detached accessory dwelling unit in the HR and RC zones (Attachment 11, page 6). PAGE 3 OF 6 SUBJECT: CONSIDER AMENDMENTS TO THE TOWN CODE REGARDING ACCESSORY DWELLING UNITS. TOWN CODE AMENDMENT/A-17-003 JANUARY 11, 2018 S:\COUNCIL REPORTS\2018\01-16-18\13 - Accessory Dwelling Units\Staff Report FINAL.docx 1/11/2018 4:15 PM DISCUSSION (Continued): Size  Provide information on Floor Area Ratio (FAR) requirements. Under new State law, local jurisdictions may impose development standards on accessory dwelling units regulating size. The Council’s discussion included the potential to allow an increase in the FAR standards for an accessory dwelling unit from those required by the zone for the primary dwelling unit. The largest allowable FAR (excluding garages) on lots between 5,000 square feet and 30,000 square feet is 0.35. Lots with slopes of less than ten percent and containing more than 30,000 square feet in the R-1, R-D, R-M, and R-1D zones are exempt from the FAR requirements. Lots greater than 30,000 square feet and lots located in the HR and RC zones are subject to the FAR standards set forth in the Hillside Standards and Design Guidelines. A ten percent increase from the largest allowable FAR would be 0.45. As an option, language allowing an increase in floor area of ten percent for an accessory dwelling unit has been incorporated into the revised draft Ordinance (Attachment 11, page 7). However, the Town Council can modify this percentage or choose not to apply FAR standards to accessory dwelling units. Q: Should accessory dwelling units be allowed on lots less than 5,000 square feet? Q: Should an exception for the FAR standards required by the zone for the primary dwelling unit be provided for accessory dwelling units?  Provide information on coverage requirements for accessory structures. The Town Code currently includes an additional requirement for accessory structure coverage. An accessory structure may not occupy more than fifteen percent of a lot, calculated exclusive of the required building setbacks. An exception to this requirement, for a new detached accessory dwelling unit, has been incorporated into the revised draft Ordinance (Attachment 11, page 12). Additionally, the R-1, R-D, and R-M zones have a maximum building lot coverage of 40 percent which is not proposed to be modified. Owner occupation  Do not require deed-restricted owner occupation of either the primary dwelling unit or accessory dwelling unit. This language has been removed from the revised draft Ordinance (Attachment 11, page 9). PAGE 4 OF 6 SUBJECT: CONSIDER AMENDMENTS TO THE TOWN CODE REGARDING ACCESSORY DWELLING UNITS. TOWN CODE AMENDMENT/A-17-003 JANUARY 11, 2018 S:\COUNCIL REPORTS\2018\01-16-18\13 - Accessory Dwelling Units\Staff Report FINAL.docx 1/11/2018 4:15 PM DISCUSSION (Continued): Other  Remove the existing ordinance language allowing denial of an accessory dwelling unit application with acknowledgment of limiting the housing opportunities in the region. This language has been removed from the revised draft Ordinance (Attachment 11, page 8).  Planning Commission recommendation to prohibit an open, exterior stairway. The Planning Commission recommended prohibiting an open exterior stairway. The recommendation would require an exterior stairway to be enclosed and would include an exception that if an additional stairway is required to get to a second story, that the square footage shall not be counted as coverage or FAR (Attachment 11, page 8). Depending on the direction received from Council, similar language could be added to the design and development standards for new accessory dwelling units. Q: Should open exterior stairways be prohibited? B. Public Outreach Staff reached out to the following organizations to inform them of the continued hearing date for the proposed Town Code amendments regarding accessory dwelling units:  Santa Clara Valley Chapter of the American Institute of Architects (AIASCV)  Santa Clara County Association of Realtors (SCCAR)  Silicon Valley Association of Realtors (SILVAR) In addition to reaching out to professional organizations, staff informed the public of the continued hearing date through the following media and social media resources:  A half-page public notice in the newspaper;  A poster posted at the Planning counter at Town Hall;  On the Town’s website home page, What’s New;  On the Town’s Facebook page;  On the Town’s Twitter account;  On the Town’s Instagram account; and  On the Town’s NextDoor page. PAGE 5 OF 6 SUBJECT: CONSIDER AMENDMENTS TO THE TOWN CODE REGARDING ACCESSORY DWELLING UNITS. TOWN CODE AMENDMENT/A-17-003 JANUARY 11, 2018 S:\COUNCIL REPORTS\2018\01-16-18\13 - Accessory Dwelling Units\Staff Report FINAL.docx 1/11/2018 4:15 PM DISCUSSION (Continued): To date, staff has also discussed the proposed amendments with approximately ten different members of the public and design community. CONCLUSION: The revised draft Ordinance (Attachment 11) details the proposed amendments. The originally proposed draft Ordinance amendments are shown in underlined font and all deletions are shown in strikethrough font. Modifications based on the Planning Commission’s recommendations are shown in bold font, and modifications included in the Town Council’s direction are shown in red bold font. Staff recommends that the Town Council: 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)] (Attachment 11); 2. Make the required finding that the Town Code (Zoning Regulations) amendments are consistent with the General Plan (Attachment 11); and 3. Introduce the Ordinance (Attachment 11) of the Town of Los Gatos affecting the amendments of the Town Code regarding accessory dwelling units (A-17-003), by title only, with any specific changes identified and agreed upon by a majority of the Town Council. ALTERNATIVES: Alternatively, the Council may: 1. Continue this item to a date certain with specific direction to staff; or 2. Refer the item back to the Planning Commission with specific direction. CEQA DETERMINATION: There is no possibility that the project would have a significant impact on the environment; therefore, the project is not subject to the California Environmental Quality Act [Section 15061(b)(3)]. PAGE 6 OF 6 SUBJECT: CONSIDER AMENDMENTS TO THE TOWN CODE REGARDING ACCESSORY DWELLING UNITS. TOWN CODE AMENDMENT/A-17-003 JANUARY 11, 2018 S:\COUNCIL REPORTS\2018\01-16-18\13 - Accessory Dwelling Units\Staff Report FINAL.docx 1/11/2018 4:15 PM PUBLIC COMMENTS: Public Comments received between 11:00 a.m., Tuesday, December 5, 2017 and 11:00 a.m., Thursday, January 11, 2018 are included below in Attachment 12. Attachments received with December 5, 2017 Council Report: 1. September 27, 2017 Planning Commission Staff Report (with Exhibits 1-8) 2. September 27, 2017 Planning Commission Addendum (with Exhibit 9) 3. September 27, 2017 Planning Commission Desk Item (with Exhibit 10) 4. September 27, 2017 Planning Commission Verbatim Minutes 5. November 8, 2017 Planning Commission Staff Report (with Exhibits 9A-16) 6. November 8, 2017 Planning Commission Addendum (with Exhibit 16A-18) 7. November 8, 2017 Planning Commission Desk Item (with Exhibit 19) 8. November 8, 2017 Planning Commission Meeting Verbatim Minutes 9. Draft Ordinance Amending Town Code Chapter 29 Attachments received with December 5, 2017 Addendum: 10. Public comments received between 11:00 a.m., Thursday, November 30, 2017 and 11:00 a.m., Monday, December 4, 2017 Attachments received with this Staff Report: 11. Revised Draft Ordinance Amending Town Code Chapter 29 12. Public comments received between 11:00 a.m., Tuesday, December 5, 2017 and 11:00 a.m., Thursday, January 11, 2018