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Staff Report PREPARED BY: RYAN SAFTY, Associate Planner, and JENNIFER ARMER, Senior Planner Reviewed by: Town Manager, Town Attorney, Community Development Department Director, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● 408-354-6874 www.losgatosca.gov TOWN OF LOS GATOS COUNCIL AGENDA REPORT MEETING DATE: 04/17/2018 ITEM NO: 10 DATE: APRIL 12, 2018 TO: MAYOR AND TOWN COUNCIL FROM: LAUREL PREVETTI, TOWN MANAGER SUBJECT: TOWN CODE AMENDMENT APPLICATION A-17-006 AND GP-17-003. PROJECT LOCATION: TOWN WIDE. APPLICANT: TOWN OF LOS GATOS. CONSIDER AMENDMENTS TO CHAPTER 29 (ZONING REGULATIONS) OF THE TOWN CODE AND THE GENERAL PLAN, REGARDING PLANNED DEVELOPMENT ORDINANCES AND THE CONDITIONAL USE PERMIT TABLE. RECOMMENDATION: Accept the Planning Commission’s recommendation and introduce the draft Ordinance (Attachment 6) by title only to amend Chapter 29 (Zoning Regulations) of the Town Code regarding Planned Development Ordinances and the Conditional Use Table and adopt a resolution (Attachment 7) approving a General Plan Amendment regarding non-residential land use designations. BACKGROUND: A Planned Development (PD) overlay zone provides property owners and developers an option for permitting uses that would not ordinarily be approved under the strict regulations of the underlining zoning designation. As provided in the General Plan (page LU -16), “The PD overlay zone is intended to ensure orderly planning and quality design that will be in harmony with the existing or potential development of the surrounding neighborhood.” The existing PD Ordinance (Attachment 1, Exhibit 2) states, “The purpose of the PD or planned development overlay zone is to provide for alternative uses and developments more consistent with site characteristics than are allowed in other zones, and so create an optimum quantity and use of open space and encourage good design.” In 2013, Town Council began discussions on the use of PD overlay zoning designations within the Town’s land use development process. PAGE 2 OF 7 SUBJECT: CONSIDER AMENDMENTS THE TOWN CODE AND GENERAL PLAN REGARDING PLANNED DEVELOPMENTS AND RESIDENTIAL USES IN NON-RESIDENTIAL ZONES. TOWN CODE AMENDMENT/A-17-006/GP-17-003 APRIL 12, 2018 S:\COUNCIL REPORTS\2018\04-17-18\PD Ord and CUP Table\10 Staff Report FINAL.docx BACKGROUND (Continued): On November 4, 2013, a Town Council PD Ad Hoc Committee was established, consisting of two Council Members. The Committee worked on the issue with staff for six months, which resulted in proposed modifications to the Town’s PD Ordinance from the Town Council Ad Hoc Committee (Attachment 1, Exhibit 3). Following subsequent review and consideration by the Town Council, Planning Commission, and members of the public, the Planning Commission recommended that the Town Council consider the formation of a committee to further research the subject. On February 17, 2015, the Town Council adopted Resolution 2015-008 (Attachment 1, Exhibit 4) establishing the Planned Development Study Committee (PDSC). The PDSC consisted of 12 members: two Council Members, three Planning Commissioners, three General Plan Committee members, a member of the public with land development experience, a member of the public with business experience, and two Town residents. On September 30, 2015, the PDSC began their review. Over the next six and one-half months the PDSC received a large amount of information and considered potential modifications to the PD Ordinance and the residential portion of the Table of Conditional Uses. Agendas, minutes, and information provided during the PDSC review can be found online at: http://www.losgatosca.gov/AgendaCenter/Planned-Development-Study-Committee-15/ On August 2, 2016, the recommendations of the PDSC were presented to the Town Council. The Town Council directed staff to prepare proposed amendments to the Town Code, General Plan, and other policy documents, incorporating the recommendations from the PDSC, and to forward them to the Planning Commission for consideration. On February 14, 2018, the recommendations of the PDSC and results of staff research were considered by the Planning Commission. The Planning Commission continued the item with a request for additional information from neighboring jurisdictions. On March 28, 2018, staff provided the Planning Commission with the additional information requested. DISCUSSION: The purpose of this PD Ordinance update process was to conduct further research regarding the history and use of the PD overlay zone designation and to formulate recommendations for the Town Council’s consideration. The Town Council also directed the PDSC to examine the Conditional Use Permit (CUP) process, which currently allows residential uses in commercial zones, to determine if the Town should consider amendments to the Town Code to address this topic. PAGE 3 OF 7 SUBJECT: CONSIDER AMENDMENTS THE TOWN CODE AND GENERAL PLAN REGARDING PLANNED DEVELOPMENTS AND RESIDENTIAL USES IN NON-RESIDENTIAL ZONES. TOWN CODE AMENDMENT/A-17-006/GP-17-003 APRIL 12, 2018 S:\COUNCIL REPORTS\2018\04-17-18\PD Ord and CUP Table\10 Staff Report FINAL.docx DISCUSSION (Continued): The PDSC and Planning Commission meetings resulted in draft PD Ordinance (Attachment 6), amendments to the Table of Conditional Uses related to residential uses in non-residential zones (Attachment 6), General Plan Amendments (Attachment 7) to maintain consistency with the revised Table of Conditional Uses, and a list of “Other Important Issues to be Addressed by the Planning Commission and Town Council” (Attachment 1, Exhibit 7). A summary of the Planning Commission discussion on each of these items is provided below. A. Draft Planned Development Ordinance The Planning Commission appreciated the work done by the PDSC and supported the PDSC’s recommended draft PD Ordinance, acknowledging that the draft PD Ordinance was a substantial improvement to the existing PD Ordinance. Minor grammatical edits to the PDSC’s recommended draft PD ordinance, recommended by the Planning Commission, have been indicated in red font in the draft PD Ordinance (Attachment 6). B. Draft Table of Conditional Uses The Planning Commission supported the recommended PDSC modification s to the Table of Conditional Uses regarding residential uses in commercial zones and did not recommend any additional modifications (Attachment 6). C. General Plan Amendment The Planning Commission also supported the PDSC’s draft revisions to the Non-Residential Land Use Designation section of the General Plan and did not recommend any modifications (Attachment 7). D. Other Important Issues The PDSC recommendation also included a list of “Other Important Issues to be Addressed by the Planning Commission and Town Council.” See Attachment 1, pages five through nine, for information from staff regarding these issues. Although the Planning Commission’s motion contained no specific consensus on the questions, Commission responses are included for items with support from three or more of the six Commissioners present at the March 28, 2018 hearing. Staff has also provided recommendations, or references to additional information, for those questions not discussed by Planning Commission. The issues are listed below for Council consideration. PAGE 4 OF 7 SUBJECT: CONSIDER AMENDMENTS THE TOWN CODE AND GENERAL PLAN REGARDING PLANNED DEVELOPMENTS AND RESIDENTIAL USES IN NON-RESIDENTIAL ZONES. TOWN CODE AMENDMENT/A-17-006/GP-17-003 APRIL 12, 2018 S:\COUNCIL REPORTS\2018\04-17-18\PD Ord and CUP Table\10 Staff Report FINAL.docx DISCUSSION (Continued): 1. Should a minimum percentage of open space be required for commercial zones? o During Planning Commission discussions, three of the Commissioners expressed that they did not want to require a minimum percentage of open space in the PD Ordinance. The Commissioners stated a preference for not allowing hardscape, such as sidewalks and patios, to apply towards an open space requirement, and recommended that this stipulation be discussed by the Town Council. The draft Ordinance in Attachment 6 does not contain an open space minimum for commercial zones. 2. Should the definitions of apartment hotel, boardinghouse, and residential condominium be removed from Chapter 29 (Zoning Regulations) of the Town Code? o The Planning Commission did not make a recommendation on this question; however, staff recommends that these outdated terms be deleted. This amendment is included in Attachment 6. 3. Should PD applications be required for subdivisions of five or more lots in the Hillside Residential Zone? o The draft PD Ordinance does not require subdivisions of five or more lots in the Hillside Residential (HR) zone to be processed as a PD. However, the HR zone requirements of the Town Code does. The Planning Commission did not make a recommendation on this question; however, staff recommends that this requirement in the HR zone (Section 29.40.255 of the Town Code) be removed. This amendment is included in Attachment 6. 4. Should there be a minimum lot size requirement for PD applications? o During Planning Commission discussions, four of the six Commissioners stated that there should be no minimum lot size requirement for PD applications. Additionally, the PDSC recommendation does not include a minimum lot size. The draft Ordinance in Attachment 6 does not contain a minimum lot size requirement for PD applications. PAGE 5 OF 7 SUBJECT: CONSIDER AMENDMENTS THE TOWN CODE AND GENERAL PLAN REGARDING PLANNED DEVELOPMENTS AND RESIDENTIAL USES IN NON-RESIDENTIAL ZONES. TOWN CODE AMENDMENT/A-17-006/GP-17-003 APRIL 12, 2018 S:\COUNCIL REPORTS\2018\04-17-18\PD Ord and CUP Table\10 Staff Report FINAL.docx DISCUSSION (Continued): 5. Should Architecture and Site and PD applications be allowed to be processed at the same time? o During Planning Commission discussions, three of the Commissioners were opposed to allowing the processing of both Architecture and Site and PD applications concurrently because of recent state law changes. The draft Ordinance in Attachment 6 does not contain amendments related to this question. 6. Should public benefit be defined? If so, is the PDSC’s recommended definition appropriate? o The Planning Commission did not make a recommendation on this question; however, one Commissioner recommended providing examples of potential public benefits. During their research, the PDSC drafted the following definition of public benefit for Planning Commission and Town Council consideration: “A project that makes a substantial contribution to the public infrastructure that is consistent with the vision and objectives of the General Plan. Mere compliance with the existing zoning shall not be considered a substantial community benefit. Substantial benefits must be actions that are substantially above and beyond what an applicant would be required to make in order to comply with the underlying zoning.” The draft Ordinance in Attachment 6 does not contain a definition or examples of public benefits. 7. Should minimum/maximum density be defined for residential units in commercial zones? If so, are density findings necessary? o The Planning Commission did not make a recommendation on this question. See page eight of Attachment 1 for information from staff on this issue. 8. Should mixed-use be defined in the Zoning Code? If so, should the Town use the existing General Plan definition, the Commercial Design Guidelines definition, a definition from a neighboring jurisdiction, or another definition? o The Planning Commission did not make a recommendation on this question. See pages eight and nine of Attachment 1 for information from staff on this issue. 9. Should one or more General Plan Land Use and/or Zoning Designations be added? o The Planning Commission did not make a recommendation on this question. Staff does not recommend additional General Plan Land Use or Zoning Designations. PAGE 6 OF 7 SUBJECT: CONSIDER AMENDMENTS THE TOWN CODE AND GENERAL PLAN REGARDING PLANNED DEVELOPMENTS AND RESIDENTIAL USES IN NON-RESIDENTIAL ZONES. TOWN CODE AMENDMENT/A-17-006/GP-17-003 APRIL 12, 2018 S:\COUNCIL REPORTS\2018\04-17-18\PD Ord and CUP Table\10 Staff Report FINAL.docx PLANNING COMMISSION RECOMMENDATION: At the March 28, 2018 hearing, the Planning Commission discussed the issues and forwarded a recommendation to the Town Council for approval of the proposed amendments to the PD Ordinance (Attachment 6), Table of Conditional Uses (Attachment 6), and General Plan (Attachment 7) with minor modifications and discussions of Other Important Issues as outlined above. CONCLUSION: Staff recommends that the Town Council: 1. Make the finding that there is no possibility that this project will have significant impact on the environment; therefore, the project is not subject to the California Environmental Quality Act [Section 15061(b)(3)] (Attachments 6 and 7); 2. Make the required finding that the Town Code (Zoning Regulations) amendments are consistent with the General Plan (Attachment 6); 3. Make the required finding that the General Plan (Land Use) amendments are internally consistent with the General Plan (Attachment 7); 4. Adopt a Resolution approving a General Plan Amendment regarding non-residential land use designations GP-17-003 (Attachment 7); and 5. Introduce the Ordinance of the Town of Los Gatos affecting the amendments of Town Code regarding Planned Development Ordinances and the Conditional Use Table A-17-006 (Attachment 6), by title only, with any specific changes identified and agreed upon by the majority of the Town Council. ALTERNATIVES: Alternatively, the Council may: 1. Continue this item to a date certain with specific direction to staff; 2. Refer the item back to the Planning Commission with specific direction; or 3. Take no action, leaving the Town Code and General Plan unchanged. PAGE 7 OF 7 SUBJECT: CONSIDER AMENDMENTS THE TOWN CODE AND GENERAL PLAN REGARDING PLANNED DEVELOPMENTS AND RESIDENTIAL USES IN NON-RESIDENTIAL ZONES. TOWN CODE AMENDMENT/A-17-006/GP-17-003 APRIL 12, 2018 S:\COUNCIL REPORTS\2018\04-17-18\PD Ord and CUP Table\10 Staff Report FINAL.docx 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)]. PUBLIC COMMENTS: No public comments have been received by the publishing of this report. Attachments: 1. February 14, 2018 Planning Commission Staff Report (with Exhibits 1-14) 2. February 14, 2018 Planning Commission Addendum Report (with Exhibit 15) 3. February 14, 2018 Planning Commission Verbatim Minutes (36 pages) 4. March 28, 2018 Planning Commission Staff Report (with Exhibits 16-33) 5. March 28, 2018 Planning Commission Verbatim Minutes (38 pages) 6. Draft Ordinance Amending Town Code Chapter 29 (12 pages) 7. Draft Resolution for General Plan Amendment (six pages)