Item No. 3
Town of Atherton
CITY COUNCIL STAFF REPORT – CONSENT AGENDA
TO: HONORABLE MAYOR AND CITY COUNCIL
GEORGE RODERICKS, CITY MANAGER
FROM: BRITTANY BENDIX, TOWN PLANNER
DATE: MARCH 18, 2026
SUBJECT: SECOND READING AND ADOPTION OF AN ORDINANCE TO ADD CHAPTER 17.59 AND AMEND CHAPTER 17.60 OF THE ATHERTON
MUNICIPAL CODE, TO ADDRESS POTENTIAL DEVELOPMENT
UNDER SENATE BILL 79
RECOMMENDATION:
Staff recommends that the City Council adopt the attached ordinance to add Chapter 17.59 “Regulations and Objective Standards for Development Projects Sought Pursuant to Government Code Section 65912.157 (SB 79)” and to amend Chapter 17.60 “Definitions” in the Atherton Municipal Code with the purpose of establishing development standards in response to the stateenabled massing and density of Senate Bill 79.
BACKGROUND
SB 79, now codified as Government Code Section 65912.155 - 65912.162, is a State housing law that applies to residential developments located within a specified distance of a transit-oriented development (TOD) stop. The law requires that qualifying housing projects be treated as a permitted use on any site zoned for residential, mixed-use, or commercial development, provided the project complies with the provisions set forth in SB 79. Projects submitted pursuant to SB 79 are not subject to review under the California Environmental Quality Act (CEQA), unless they involve a separate discretionary action.
In Atherton, SB 79 applies to properties located within one-quarter mile of the Menlo Park Caltrain Station. For those properties, the statute requires that residential development be permitted at a minimum density of 120 dwelling units per acre (du/ac), a minimum building height of 75 feet, and a minimum floor area ratio (FAR) of 3.5. Seven properties in Atherton meet the statutory eligibility criteria and are subject to SB 79, as shown in Figure 1 below.
SB 79 Ordinance – City Council Staff Report, 2nd Reading March 18, 2026
Figure 1: SB 79 Eligible Lots in Atherton
On December 3, 2025, the City Council held a study session regarding implementation of SB 79.
The presentation identified eligible sites within the Town and summarized the development standards required under State law. Atherton does not currently have objective standards in place for development at this intensity. Accordingly, Council directed staff to prepare an implementing ordinance establishing objective development and design standards applicable to SB 79 projects prior to the law’s effective date on July 1, 2026.
On January 20, 2026, the Town held a public workshop to receive feedback on development modeling and potential objective standards applicable to SB 79 projects. The workshop included an overview of state-mandated requirements, as well as illustrative massing scenarios demonstrating how those standards could be implemented on eligible sites within Atherton.
Participants emphasized the importance of maximizing setbacks to maintain privacy and neighborhood character, though there was limited support for increasing height or floor area as trade-offs to achieve greater setbacks. Staff incorporated this feedback into the preparation of the draft ordinance.
The Planning Commission considered the draft ordinance at its January 28, 2026, meeting and voted to recommend approval to the City Council. During its discussion, the Commission acknowledged staff’s approach to prioritizing setbacks while ensuring compliance with height and density requirements. Commissioners also expressed concerns that the proposed open space standards could be overly permissive and may result in noise or privacy impacts to adjacent R-1 properties. Commissioners Polito, Tonelli, Leugers, and Levison voted in favor of recommending approval of the ordinance, with direction to further evaluate the open space provisions.
Commissioner Seabolt voted against the recommendation, citing concerns regarding the allowance of open space under the proposed standards.
The draft ordinance was revised consistent with Planning Commission direction and presented to the City Council for first reading at its regular meeting on February 18, 2026. At that meeting, Council provided additional direction to staff, as outlined in the Analysis section below, and voted 5-0 to introduce the ordinance and advance it to a second reading.
SB 79 Ordinance – City Council Staff Report, 2nd Reading March 18, 2026
Since the City Council meeting, staff has also had an opportunity to meet with the California Department of Housing and Community Development (HCD) and discuss the proposed ordinance.
Generally, HCD is supportive of the Town’s approach and directed the Town to make one modification to clarify the inclusionary requirements, as discussed further below.
ANALYSIS
Staff has included a revised ordinance as Attachment 1 reflecting changes made since the first reading. Since the February 18, 2026, meeting, the following revisions have been made:
• Purpose: For greater transparency, staff has added language to link the effective date of this chapter to the effective date of state law. Given the state’s ongoing efforts to refine the language of SB 79, it is possible that the effectiveness of the state law could be delayed.
However, the current timeline does not afford the Town an option to “wait and see.” • Characteristics of the District: This section identifies the affordability requirements of projects pursuant to state law. During staff’s discussion with HCD, the Town was directed to clarify in this section that while the Town’s 20 percent inclusionary housing requirement would apply, a portion of that amount would need to satisfy one of the state’s three affordability requirements for SB 79 projects – either 7 percent at extremely low income, 10 percent at very low income or 13 percent at lower income. For example, an eligible SB 79 project in Atherton could provide 7 percent of units at extremely low income and 13 percent of moderate income to meet the Town’s overall 20 percent requirement. • Site Design (Section D): The word “paved” has been removed from Standard (D)(3)(a) to provide greater flexibility in sidewalk design as the Town pursues its Active Transportation Plan, while maintaining the required minimum five-foot-wide walkway per ADA requirements. Figure 17.59.030-1 has been updated, consistent with the presentation to Council, to depict a landscape buffer and to include an additional plan view of the streetscape requirements for clarity.
• Open Space Design (Section E): Standard (E)(2)(a) has been modified to require common open space to be provided at grade and requires open space designed for active recreation (including outdoor kitchens, pools, play areas, sports courts, and dog runs) to be located at least forty (40) feet from any shared R-1 lot line. Standard (E)(2)(b) has been deleted because elevated common open space is no longer allowed per Council direction. “Patios” has been added to Standard (E)(3)(d) to clarify that private open space areas—including balconies, patios, and decks—may not face an adjacent R-1 lot. • Landscaping (Section F): Standard (F)(2)(b) has been modified at Council’s direction to establish minimum tree size requirements for landscape screening, consistent with the Town Arborist’s recommendation that screening trees achieve a minimum mature height of twenty-five (25) feet.
SB 79 Ordinance – City Council Staff Report, 2nd Reading March 18, 2026
• Entries and Openings (Section I): Standard (I)(1) has been added to limit buildings to no more than two (2) resident entries facing an adjacent R-1 lot, except where additional entries are required to meet fire and life safety requirements under the California Building Code. Furthermore, the minimum fifty-four (54)-inch window sill height requirement has been removed from Standard (I)(7)(c) for consistency with building code requirements. • Accessory Buildings and Structures (Section M): The standards have been updated for consistency with RM-10 development requirements. This includes increasing side and rear setbacks from five (5) feet to ten (10) feet and introducing standards for detached garages and trash collection consistent with RM-10 development standards.
FINDINGS:
Chapter 17.18 of the AMC sets the process for zoning code amendments whereby the Planning Commission adopts a resolution with recommendations to the City Council. The Council will then approve, conditionally approve, or deny the zoning amendments. To approve the amendments the Council must find that the changes are consistent with the Town’s General Plan goals, policies, and implementation programs, as identified below:
Housing Element Goal 3.710 Facilitate the private development of housing to meet the above moderate income housing need identified for
Atherton.
Housing Element Objective 3.711 Realize the construction of approximately 150 net new housing units in the above-moderate income category in
Atherton from 2023-2031.
Housing Element Policy 3.712 Within the limitations of the private housing market the Town shall work with private developers to encourage new housing development.
Housing Element Goal 3.760 Encourage special consideration to the maintenance and expansion of housing opportunities for handicapped and
low- and moderate-income homeless persons.
Housing Element Objective 3.761 B. Support the conservation and development of affordable housing for citizens of modest means.
Housing Element Goal 3.770 Meet the needs of seniors, in light of the pending growth of this population in San Mateo County
Housing Element Policy 3.772 B. Support the conservation and development of affordable housing for seniors with lower incomes.
ENVIRONMENTAL IMPACT:
The project is Categorically Exemption per Section 15061(b)(3) of the CEQA Guidelines. Section 15061(b)(3) relates to the common sense exemption, as the ordinance amendments would not result in any changes to land use or density already approved by the state.
SB 79 Ordinance – City Council Staff Report, 2nd Reading March 18, 2026
PUBLIC NOTICE:
Public notification was achieved by posting the agenda, with this agenda item being listed, at least 72 hours prior to the meeting in print and electronically. Legal advertisement of this hearing was published in The Almanac newspaper. Information about the project is also disseminated via the Town’s electronic News Flash and Atherton Online. There are approximately 1,200 subscribers to the Town’s electronic News Flash publications. Subscribers include residents as well as stakeholders – to include, but be not limited to, media outlets, school districts, Menlo Park Fire District, service provides (water, power, and sewer), and regional elected officials.
FORMAL MOTION:
I move that the City Council introduce and conduct the second reading of an ordinance adding Chapter 17.59, “Regulations and Objective Standards for Development Projects Sought Pursuant to Government Code Section 65912.157 (Senate Bill 79),” and amending Chapter 17.60, “Definitions,” of the Atherton Municipal Code, based on the findings and reasons outlined in the Staff Report.
/s/Brittany Bendix
Brittany Bendix, Town Planner
Attachments:
1. Draft City Council Ordinance (Tracked-Changes)
2. Draft City Council Ordinance (Clean)