3. The application is consistent with the applicable Secretary of the Interior's Standards for the Treatment of Historic Properties, the rules and regulations of the Office of Historic Preservation of the California State Parks Department, and the California Historical Building Code.
4. The application is consistent with the requirements of this Chapter.
14.95.090 - Review of applications.
A. The Zoning Administrator shall review the applications for completeness and accuracy and may require such additional information from the applicant as is needed to make the application complete. Only a Applications should be filed on or before June July 1 of a calendar year shall be eligible for consideration for a historic property contract for the subsequent fiscal year.
B. All applications deemed complete by the Zoning Administrator shall be referred to the Historical Commission for recommendation to the City Council on eligibility of the property for a historic property contract.
C. The Historical Commission shall make a recommendation on the eligibility of the property for a historic property contract for consideration by the City Council.
D. If the Historical Commission finds that the application meets the criteria for eligibility for a historic property contract, the Historical Commission shall recommend approval to the City Council. If the Historical Commission finds that the application does not meet the criteria for eligibility, the Historical Commission shall recommend to the City Council that the application be denied for a historic property contract.
E. The historic property contract shall be consistent with the requirements of this Chapter and state law and in a form acceptable to the City Attorney. The contract shall be approved as to form by City Attorney prior to submission of the contract to the City Council for its consideration.
F. Final action on the contract shall be considered by the City Council at a noticed public hearing. The City of Los Altos shall not execute any contract until authorized by the City Council and until all persons and entities having any right, title, or interest in the property which is the subject of the contract have signed the contract or provided written authorization for an agent to execute the contract on their behalf and until the owner(s) have submitted to the city the appropriate fee for recordation of the contract.
14.95.100 - Recordation of approved historic property contracts.
No later than twenty (20) calendar days after execution by all parties of the historic property contract, the City Clerk shall cause a copy of the executed historic property
contract to be recorded in the Office of the Recorder of the County of Santa Clara accompanied by the fee paid by owner for recordation of the contract.
14.95.110 - Review of approved historic property contracts.
A. The owner shall allow for inspection of the interior and exterior of the premises by the City of Los Altos Development Services Department staff after five (5) years from entry into the contract and every five (5) years thereafter to determine the owner's continuing compliance with the historic property contract. Photographs of the interior and exterior shall not substitute the requirement for an onsite inspection of the property by city staff.
B. No later than ninety (90) days prior to each five (5) year inspection date, the owner shall submit documentation to the Development Services Department in sufficient detail to demonstrate compliance with the historic property contract's work program, including but not limited to the following documentation:
1. Color photos of actual work done in conformance with the contract;
2. Receipts and copies of financial transactions related to work carried out in conformance with the recorded contract;
3. Copies of building permits, planning entitlements, and/or historic alteration permits for work carried out in conformance with the recorded historic property contract; and
4. Such other information as may be required by the Zoning Administrator.
C. The Zoning Administrator shall review the documentation to determine compliance with the recorded historic property contract. If documentation is not submitted within the required timeframe or the documentation submitted demonstrates in the determination of the Zoning Administrator that the owner has breached any of the conditions of the historic property contract or has allowed the property to deteriorate to the point that it no longer meets the standards for a qualified historical property, the Zoning Administrator shall begin the process for cancellation of the contract pursuant to this Chapter.
D. At least sixty (60) days prior to the tenth anniversary date of the historic property contract, the owner shall submit a report from a qualified historian to the Development Services Department. The report shall describe the work carried out pursuant to the contract and shall recommend any appropriate improvements needed to achieve rehabilitation, restoration, or preservation of the property. Based on the recommendations, the City of Los Altos may require an amendment to the contract to update the maintenance/rehabilitation program. If the Zoning Administrator determines, as part of the tenth year review, that rehabilitation or restoration for the subject property has been achieved, the owner shall commit to
and be responsible for appropriate maintenance and preservation of the subject property in accordance with the Secretary of the Interior's Standards for the Treatment of Historic Properties so long as the contract remains in effect.
14.95.120 - Nonrenewal of historic property contracts.
A. Each year on the anniversary date of the contract or such other date as is specified in the contract, a year shall be added automatically to the initial term of the contract, unless the owner or the City has given timely written notice of nonrenewal in accordance with the requirements of state law and this Chapter. If the owner desires in any year not to renew the contract, the owner shall serve written notice of nonrenewal of the contract to the Zoning Administrator at least ninety (90) days in advance of the annual renewal date of the contract. If the City Council determines in any year not to renew the contract, the City Council or their authorized designee shall serve written notice of nonrenewal of the contract on the owner at least sixty (60) days in advance of the annual renewal date of the contract. The City of Los Altos shall serve a notice of nonrenewal only after the City Council has conducted a noticed public hearing to consider the nonrenewal. Unless the notice of nonrenewal is served by the owner(s) or the City in accordance with these requirements, one year shall automatically be added to the term of the contract.
B. Upon receipt by the owner of a notice from the City for nonrenewal of the contract, the owner may make a written protest of the notice to the City Council. Such protest must be in writing and filed with the City Clerk within ten (10) fourteen (14) days after the written notice of nonrenewal was mailed to the owner. If a written notice of protest is timely filed, the City Clerk shall schedule the protest for a noticed public hearing before the City Council within sixty (60) days of the filing of the protest and notify the owner of the hearing date. The City Council may, at any time prior to the renewal date, withdraw the notice of non-renewal. Following the hearing, the City Council may withdraw or affirm the notice of non-renewal. If the City Council affirms the notice of nonrenewal, the existing contract shall remain in effect for the balance of the period remaining since the original execution or the last renewal of the contract.
C. Following the nonrenewal of the contract, the property shall be assessed in accordance with state law (Section 439.3 of the Revenue and Taxation Code, as may be periodically amended).
14.95.130 - Amendment of historic property contracts.
A. A historic property contract may be amended, in whole or in part, in accordance with the provisions of this Chapter.
B. For owner-initiated amendments to a historic property contract, the owner must file an application for an amendment with the Development Services Department on the form and in the manner prescribed by the Zoning Administrator. The owner shall pay such application fees as have been set by resolution of the City Council. The Zoning Administrator shall review the amendment application for completeness and adequacy. The Zoning Administrator may request additional information as necessary to evaluate the amendment.
C. For City of Los Altos-initiated amendments to a historic property contract, the Zoning Administrator shall inform existing owner(s) of intended amendments. Cityinitiated amendments shall be in conformance with the provisions of this Chapter and are to ensure the continued preservation of historic resources with historic property contracts.
1. City-initiated amendments shall be considered during the annual review of historic property contracts in order to ensure each existing contract adheres to the provisions of this Chapter as amended from time to time.
D. At such time that the Zoning Administrator has determined the amendment to be complete, the Zoning Administrator shall refer the amendment to the Historical Commission for a recommendation to the City Council.
E. Following receipt of the Historical Commission recommendation and following all applicable environmental review, the City Council shall render a decision on the proposed amendment.
F. No later than twenty (20) calendar days after City of Los Altos execution of the amendment to the historic property contract, the City Clerk shall cause a copy of the executed amendment to be recorded in the Office of the Recorder of the County of Santa Clara accompanied by the fee paid by owner for recordation of the contract amendment.
14.95.140 - Cancellation of historic property contracts.
A. The City of Los Altos may cancel a historic property contract, subject to the process described in this section, if the City finds that one of the following conditions has occurred:
1. The owner has breached any of the conditions of the historic property contract; or
2. The owner has allowed the property to deteriorate to the point that it no longer meets the definition of a qualified historical property.
B. The following process shall be followed for cancellation of a historic property contract:
1. If the Zoning Administrator determines at any time that the owner has breached any of the conditions of the historic property contract or has allowed the property to deteriorate to the point that it no longer meets the definition of a qualified historical property, the Zoning Administrator shall notify the owner in writing describing the deficiencies. If the owner has not corrected the deficiencies to the satisfaction of the Zoning Administrator within sixty (60) days of the issuance of the notification, the Zoning Administrator may refer the cancellation of the contract to the Historical Commission for a recommendation to the City Council on the cancellation.
2. The Historical Commission shall, at a noticed public hearing, evaluate the evidence in the record and provide a written recommendation to the City Council as to whether one of the conditions for cancellation has occurred.
3. Following receipt of the Historical Commission recommendation, the City Council shall, at a noticed public hearing, consider whether to cancel the contract. No contract shall be cancelled until after the City Council has given notice of and has held a public hearing on the cancellation.
C. To cancel the contract, the City Council must make a finding, based on substantial evidence that one of the following conditions has occurred:
1. The owner has breached a condition of the historic property contract; or
2. The owner has allowed the property to deteriorate to the point that it no longer meets the definition of a qualified historical property.
D. If a historic property contract is cancelled under this section, the owner shall, in accordance with Government Code Sections 50284 and 50286, pay a cancellation fee equal to twelve and one-half (12½) percent of the property's current fair market value, as determined by the County Assessor as though the property were free of the contractual restriction.
14.95.150 - Notice of hearing.
Any decisions rendered under regulations contained within this Chapter are subject to public meeting notice requirements pursuant to Section 14.01.130 of the Los Altos Municipal Code.
California Office of Historic Preservation
Technical Assistance Series
Department of Parks & Recreation
1416 9th St,
Rm 1442-7
Sacramento CA 95814
PO Box 942896
Sacramento CA
94296-0001
phone:
(916) 653-6624
fax:
(916) 653-9824
email:
[email protected]
website:
ohp.parks.ca.gov
12 Mills Act
Property Tax
Abatement
Program
This publication has been financed in part with Federal funds from the National Park Service, Department of the Interior, under the National Historic Preservation Act of 1966, as amended, and administered by the California Office of Historic Preservation. The contents and opinions do not necessarily reflect the views or policies of the Department of the Interior, nor does the mention of trade names or commercial products constitute endorsement or recommendation by the Department of the Interior. Under Title VI of the Civil Rights Act of 1964 and Section 504 of the Rehabilitation Act of 1973, the U.S. Department of the Interior strictly prohibits unlawful discrimination on the basis of race, color, national origin, age, or handicap in its federally-assisted programs. If you believe you have been discriminated against in any program, activity, or facility as described above, or if you desire further information, please write to Office for Equal Opportunity, U.S. Department of the Interior, National Park Service, Box 37127, Washington DC 20013-7127.
Table of Contents
Mills Act Property Tax Abatement Program .................................................................... 1 Purpose of the Mills Act Program ................................................................................ 1 Benefits to Local Governments.................................................................................... 1 Benefits to Owners ...................................................................................................... 1 Qualified Historic Property ........................................................................................... 2 OHP’s Role.................................................................................................................. 2 For Additional Information............................................................................................ 2 California State Codes Relating to Mills Act Program ..................................................... 3 California Government Code, Article 12, Sections 50280 - 50290............................... 3 California Revenue and Taxation Code, Article 1.9, Sections 439 – 439.4.................. 6
Mills Act Property Tax Abatement Program
Purpose of the Mills Act Program
Economic incentives foster the preservation of residential neighborhoods and the revitalization of downtown commercial districts. The Mills Act is the single most important economic incentive program in California for the restoration and preservation of qualified historic buildings by private property owners.
Enacted in 1972, the Mills Act legislation grants participating local governments (cities and counties) authority to enter into contracts with owners of qualified historic properties who actively participate in the restoration and maintenance of their historic properties while receiving property tax relief.
Benefits to Local Governments
The Mills Act allows local governments to design preservation programs to accommodate specific community needs and priorities for rehabilitating entire neighborhoods, encouraging seismic safety programs, contributing to affordable housing, promoting heritage tourism, or fostering pride of ownership. Local governments have adopted the Mills Act because they recognize the economic benefits of conserving resources and reinvestment as well as the important role historic preservation can play in revitalizing older areas, creating cultural tourism, building civic pride, and retaining the sense of place and continuity with the community’s past.
A formal agreement, generally known as a Mills Act or Historical Property Contract, is executed between the local government and the property owner for a minimum ten-year term. Contracts are automatically renewed each year and are transferred to new owners when the property is sold. Property owners agree to restore, maintain, and protect the property in accordance with specific historic preservation standards and conditions identified in the contract. Periodic inspections by city or county officials ensure proper maintenance of the property. Local authorities may impose penalties for breach of contract or failure to protect the historic property. The contract is binding to all owners during the contract period.
Benefits to Owners
Owners of historic buildings may qualify for property tax relief if they pledge to rehabilitate and maintain the historical and architectural character of their properties for at least a ten-year period. The Mills Act program is especially beneficial for recent buyers of historic properties and for current owners of historic buildings who have made major improvements to their properties.
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Mills Act participants may realize substantial property tax savings of between 40% and 60% each year for newly improved or purchased older properties because valuations of Mills Act properties are determined by the Income Approach to Value rather than by the standard Market Approach to Value. The income approach, divided by a capitalization rate, determines the assessed value of the property. In general, the income of an owner-occupied property is based on comparable rents for similar properties in the area, while the income amount on a commercial property is based on actual rent received. Because rental values vary from area to area, actual property savings vary from county to county. In addition, as County Assessors are required to assess all properties annually, Mills Act properties may realize slight increases in property taxes each year.
Qualified Historic Property
A qualified historic property is a property listed on any federal, state, county, or city register, including the National Register of Historic Places, California Register of Historical Resources, California Historical Landmarks, State Points of Historical Interest, and locally designated landmarks. Owner-occupied family residences and incomeproducing commercial properties may qualify for the Mills Act program.
OHP’s Role
OHP provides technical assistance and guidance to local governments and property owners. OHP maintains a current list of communities participating in the Mills Act program and copies of Mills Act ordinances, resolutions, and contracts that have been adopted. OHP does not participate in the negations of the agreement and is not a signatory to the contract.
For Additional Information
Contact the planning department of the city or county within which the historic property is located.
California’s four largest cities (Los Angeles, San Diego, San Francisco, and San Jose) as well as more than 75 other city and county governments have instituted Mills Act programs. A list of communities participating in the Mills Act Program is available online at http://www.ohp.parks.ca.gov/default.asp?page_id=21412 .
For additional information on the Mills Act, please contact Maryln Lortie in the Office of Historic Preservation, PO Box 942896, Sacramento CA 94296-0001, (916) 653-8911, [email protected].
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California State Codes Relating to Mills Act Program
California Government Code, Article 12, Sections 50280 - 50290 50280. Restriction of property use.
Upon the application of an owner or the agent of an owner of any qualified historical property, as defined in Section 50280.1, the legislative body of a city, county, or city and county may contract with the owner or agent to restrict the use of the property in a manner which the legislative body deems reasonable to carry out the purposes of this article and of Article 1.9 (commencing with Section 439) of Chapter 3 of Part 2 of Division 1 of the Revenue and Taxation Code. The contract shall meet the requirements of Sections 50281 and 50282.
50280.1. Qualified historic property.
"Qualified historical property" for purposes of this article, means privately owned property which is not exempt from property taxation and which meets either of the following:
(a) Listed in the National Register of Historic Places or located in a registered historic district, as defined in Section 1.191-2(b) of Title 26 of the Code of Federal Regulations. (b) Listed in any state, city, county, or city and county official register of historical or architecturally significant sites, places, or landmarks. 50281. Required contract provision.
Any contract entered into under this article shall contain the following provisions:
(a) The term of the contract shall be for a minimum period of 10 years. (b) Where applicable, the contract shall provide the following:
(1) For the preservation of the qualified historical property and, when necessary, to restore and rehabilitate the property to conform to the rules and regulations of the Office of Historic Preservation of the Department of Parks and Recreation, the United States Secretary of the Interior's Standards for Rehabilitation, and the State Historical Building Code.
(2) For the periodic examinations of the interior and exterior of the premises by the assessor, the Department of Parks and Recreation, and the State Board of Equalization as may be necessary to determine the owner's compliance with the contract. (3) For it to be binding upon, and inure to the benefit of, all successors in interest of the owner. A successor in interest shall have the same rights and obligations under the contract as the original owner who entered into the contract. (c) The owner or agent of an owner shall provide written notice of the contract to the Office of Historic Preservation within six months of entering into the contract.
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50281.1. Fees.
The legislative body entering into a contract described in this article may require that the property owner, as a condition to entering into the contract, pay a fee not to exceed the reasonable cost of administering this program.
50282. Renewal.
(a) Each contract shall provide that on the anniversary date of the contract or such other annual date as is specified in the contract, a year shall be added automatically to the initial term of the contract unless notice of nonrenewal is given as provided in this section. If the property owner or the legislative body desires in any year not to renew the contract, that party shall serve written notice of nonrenewal of the contract on the other party in advance of the annual renewal date of the contract. Unless the notice is served by the owner at least 90 days prior to the renewal date or by the legislative body at least 60 days prior to the renewal date, one year shall automatically be added to the term of the contract.
(b) Upon receipt by the owner of a notice from the legislative body of nonrenewal, the owner may make a written protest of the notice of nonrenewal. The legislative body may, at any time prior to the renewal date, withdraw the notice of nonrenewal. (c) If the legislative body or the owner serves notice of intent in any year not to renew the contract, the existing contract shall remain in effect for the balance of the period remaining since the original execution or the last renewal of the contract, as the case may be.
(d) The owner shall furnish the legislative body with any information the legislative body shall require in order to enable it to determine the eligibility of the property involved.
(e) No later than 20 days after a city or county enters into a contract with an owner pursuant to this article, the clerk of the legislative body shall record with the county recorder a copy of the contract, which shall describe the property subject thereto. From and after the time of the recordation, this contract shall impart a notice thereof to all persons as is afforded by the recording laws of this state. 50284. Cancellation.
The legislative body may cancel a contract if it determines that the owner has breached any of the conditions of the contract provided for in this article or has allowed the property to deteriorate to the point that it no longer meets the standards for a qualified historical property. The legislative body may also cancel a contract if it determines that the owner has failed to restore or rehabilitate the property in the manner specified in the contract.
50285. Consultation with state commission.
No contract shall be canceled under Section 50284 until after the legislative body has given notice of, and has held, a public hearing on the matter. Notice of the hearing shall be mailed to the last known address of each owner of property within the historic zone and shall be published pursuant to Section 6061.
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50286. Cancellation.
(a) If a contract is canceled under Section 50284, the owner shall pay a cancellation fee equal to 121/2 percent of the current fair market value of the property, as determined by the county assessor as though the property were free of the contractual restriction.
(b) The cancellation fee shall be paid to the county auditor, at the time and in the manner that the county auditor shall prescribe, and shall be allocated by the county auditor to each jurisdiction in the tax rate area in which the property is located in the same manner as the auditor allocates the annual tax increment in that tax rate area in that fiscal year.
(c) Notwithstanding any other provision of law, revenue received by a school district pursuant to this section shall be considered property tax revenue for the purposes of Section 42238 of the Education Code, and revenue received by a county superintendent of schools pursuant to this section shall be considered property tax revenue for the purposes of Article 3 (commencing with Section 2550) of Chapter 12 of Part 2 of Division 1 of Title 1 of the Education Code.
50287. Action to enforce contract.
As an alternative to cancellation of the contract for breach of any condition, the county, city, or any landowner may bring any action in court necessary to enforce a contract including, but not limited to, an action to enforce the contract by specific performance or injunction.
50288. Eminent domain.
In the event that property subject to contract under this article is acquired in whole or in part by eminent domain or other acquisition by any entity authorized to exercise the power of eminent domain, and the acquisition is determined by the legislative body to frustrate the purpose of the contract, such contract shall be canceled and no fee shall be imposed under Section 50286. Such contract shall be deemed null and void for all purposes of determining the value of the property so acquired. 50289. Annexation by city.
In the event that property restricted by a contract with a county under this article is annexed to a city, the city shall succeed to all rights, duties, and powers of the county under such contract.
50290. Consultation with state commission.
Local agencies and owners of qualified historical properties may consult with the State Historical Resources Commission for its advice and counsel on matters relevant to historical property contracts.
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California Revenue and Taxation Code, Article 1.9, Sections 439 – 439.4 439. Historical Property Restrictions; enforceably restricted property.
For the purposes of this article and within the meaning of Section 8 of Article XIII of the Constitution, property is "enforceably restricted" if it is subject to an historical property contract executed pursuant to Article 12 (commencing with Section 50280) of Chapter 1 of Part 1 of Division 1 of Title 5 of the Government Code. 439.1. Historical Property; definitions.
For purposes of this article "restricted historical property" means qualified historical property, as defined in Section 50280.1 of the Government Code, that is subject to a historical property contract executed pursuant to Article 12 (commencing with Section 50280) of Chapter 1 of Part 1 of Division 1 of Title 5 of the Government Code. For purposes of this section, "qualified historical property" includes qualified historical improvements and any land on which the qualified historical improvements are situated, as specified in the historical property contract. If the historical property contract does not specify the land that is to be included, "qualified historical property" includes only that area of reasonable size that is used as a site for the historical improvements. 439.2. Historical Property; valuation.
When valuing enforceably restricted historical property, the county assessor shall not consider sales data on similar property, whether or not enforceably restricted, and shall value that restricted historical property by the capitalization of income method in the following manner:
(a) The annual income to be capitalized shall be determined as follows:
(1) Where sufficient rental information is available, the income shall be the fair rent that can be imputed to the restricted historical property being valued based upon rent actually received for the property by the owner and upon typical rentals received in the area for similar property in similar use where the owner pays the property tax. When the restricted historical property being valued is actually encumbered by a lease, any cash rent or its equivalent considered in determining the fair rent of the property shall be the amount for which the property would be expected to rent were the rental payment to be renegotiated in the light of current conditions, including applicable provisions under which the property is enforceably restricted.
(2) Where sufficient rental information is not available, the income shall be that which the restricted historical property being valued reasonably can be expected to yield under prudent management and subject to applicable provisions under which the property is enforceably restricted.
(3) If the parties to an instrument that enforceably restricts the property stipulate therein an amount that constitutes the minimum annual income to be capitalized, then the income to be capitalized shall not be less than the amount so stipulated. For purposes of this section, income shall be determined in accordance with rules and Mills Act Property Tax Abatement Program 6
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regulations issued by the board and with this section and shall be the difference between revenue and expenditures. Revenue shall be the amount of money or money's worth, including any cash rent or its equivalent, that the property can be expected to yield to an owner-operator annually on the average from any use of the property permitted under the terms by which the property is enforceably restricted. Expenditures shall be any outlay or average annual allocation of money or money's worth that can be fairly charged against the revenue expected to be received during the period used in computing the revenue. Those expenditures to be charged against revenue shall be only those which are ordinary and necessary in the production and maintenance of the revenue for that period. Expenditures shall not include depletion charges, debt retirement, interest on funds invested in the property, property taxes, corporation income taxes, or corporation franchise taxes based on income. (b) The capitalization rate to be used in valuing owner-occupied single family dwellings pursuant to this article shall not be derived from sales data and shall be the sum of the following components:
(1) An interest component to be determined by the board and announced no later than September 1 of the year preceding the assessment year and that was the yield rate equal to the effective rate on conventional mortgages as determined by the Federal Housing Finance Board, rounded to the nearest 1/4 percent. (2) A historical property risk component of 4 percent.
(3) A component for property taxes that shall be a percentage equal to the estimated total tax rate applicable to the property for the assessment year times the assessment ratio.
(4) A component for amortization of the improvements that shall be a percentage equivalent to the reciprocal of the remaining life.
(c) The capitalization rate to be used in valuing all other restricted historical property pursuant to this article shall not be derived from sales data and shall be the sum of the following components:
(1) An interest component to be determined by the board and announced no later than September 1 of the year preceding the assessment year and that was the yield rate equal to the effective rate on conventional mortgages as determined by the Federal Housing Finance Board, rounded to the nearest 1/4 percent. (2) A historical property risk component of 2 percent.
(3) A component for property taxes that shall be a percentage equal to the estimated total tax rate applicable to the property for the assessment year times the assessment ratio.
(4) A component for amortization of the improvements that shall be a percentage equivalent to the reciprocal of the remaining life.
(d) Unless a party to an instrument that creates an enforceable restriction expressly prohibits the valuation, the valuation resulting from the capitalization of income method described in this section shall not exceed the lesser of either the valuation that would have resulted by calculation under Section 110, or the valuation that would have resulted by calculation under Section 110.1, as though the property was not subject to an enforceable restriction in the base year.
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(e) The value of the restricted historical property shall be the quotient of the income determined as provided in subdivision (a) divided by the capitalization rate determined as provided in subdivision (b) or (c).
(f) The ratio prescribed in Section 401 shall be applied to the value of the property determined in subdivision (d) to obtain its assessed value. 439.3. Historical Property; notice of nonrenewal.
Notwithstanding any provision of Section 439.2 to the contrary, if either the county or city or the owner of restricted historical property subject to contract has served notice of nonrenewal as provided in Section 50282 of the Government Code, the county assessor shall value that restricted historical property as provided in this section. (a) Following the hearing conducted pursuant to Section 50285 of the Government Code, subdivision (b) shall apply until the termination of the period for which the restricted historical property is enforceably restricted. (b) The board or assessor in each year until the termination of the period for which the property is enforceably restricted shall do all of the following:
(1) Determine the full cash value of the property pursuant to Section 110.1. If the property is not subject to Section 110.1 when the restriction expires, the value shall be determined pursuant to Section 110 as if the property were free of contractual restriction. If the property will be subject to a use for which this chapter provides a special restricted assessment, the value of the property shall be determined as if it were subject to the new restriction.
(2) Determine the value of the property by the capitalization of income method as provided in Section 439.2 and without regard to the fact that a notice of nonrenewal or cancellation has occurred.
(3) Subtract the value determined in paragraph (2) of this subdivision by capitalization of income from the full cash value determined in paragraph (1). (4) Using the rate announced by the board pursuant to paragraph (1) of subdivision (b) of Section 439.2, discount the amount obtained in paragraph (3) for the number of years remaining until the termination of the period for which the property is enforceably restricted.
(5) Determine the value of the property by adding the value determined by the capitalization of income method as provided in paragraph (2) and the value obtained in paragraph (4).
(6) Apply the ratios prescribed in Section 401 to the value of the property determined in paragraph (5) to obtain its assessed value.
439.4. Historical Property; recordation.
No property shall be valued pursuant to this article unless an enforceable restriction meeting the requirements of Section 439 is signed, accepted and recorded on or before the lien date for the fiscal year in which the valuation would apply.
1 ORDINANCE NO. 2025-__
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LOS ALTOS REPEALING IN ITS ENTIRETY CHAPTER 12.44 FOR EXISTING HISTORIC
PRESERVATION REGULATIONS
WHEREAS, the City Council is empowered pursuant to Article XI, Section 7 of the California Constitution to make and enforce within the City all local, police, sanitary, and other ordinances, and regulations not in conflict with general laws; and WHEREAS, the City Council held a duly noticed public hearing on DATE TO BE INSERTED, and DATE TO BE INSERTED; and
WHEREAS, the amendments were processed in accordance with the applicable provisions of the California Government Code and the Los Altos Municipal Code; and WHEREAS, the City Council repeals in its entirety Chapter 12.44 of the Los Altos Municipal Code; and
WHEREAS, this Ordinance is exempt from environmental review pursuant to Section 15061(b)(3) of the State Guidelines implementing the California Environmental Quality Act of 1970, as amended; and
NOW, THEREFORE, the City Council of the City of Los Altos does hereby ordain as follows:
SECTION 1. REPEAL CHAPTER 12.44 OF THE LOS ALTOS MUNICIPAL CODE.
Chapter 12.44 of the Los Altos Municipal Code is hereby amended as set forth in Appendix A to this Ordinance, underline indicating addition, strikethrough indicating deletion.
SECTION 2. CONSTITUTIONALITY; AMBIGUITIES. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions hereof. Any ambiguities in the Los Altos Municipal Code created by this Ordinance shall be resolved by the Development Services Director, in their reasonable discretion, after consulting the City Attorney.
SECTION 3. PUBLICATION. This Ordinance shall be published as provided in Government Code Section 36933.
SECTION 4. EFFECTIVE DATE. This Ordinance shall be effective upon the commencement of the thirty-first day following the adoption hereof.
I HEREBY CERTIFY that the foregoing Ordinance was duly and properly introduced at a regular meeting of the City Council of the City of Los Altos held on DATE TO BE INSERTED, and was thereafter, at a regular meeting held on DATE TO BE INSERTED, passed, and adopted by the following vote:
AYES:
NOES:
2 ABSENT:
ABSTAIN:
___________________________________
Pete Dailey, MAYOR
Attest:
____________________________
Melissa Thurman, MMC, CITY CLERK
APPENDIX A
Los Altos, California, Code of Ordinances Created: 2025-05-06 12:46:38 [EST] (Supp. No. 43)
Chapter 12.44 HISTORIC PRESERVATION1
Sections:
Article 1. General Provisions
12.44.010 Purpose.
It is hereby declared as a matter of public policy that the recognition, preservation, enhancement and use of historic resources within the City of Los Altos is required in the interest of health, economic prosperity, cultural enrichment and general welfare of the people. The purpose of this chapter is to:
A. Safeguard the heritage of the city by providing for the protection of irreplaceable historic resources representing significant elements of its history;
B. Enhance the visual character of the city by encouraging the compatibility of architectural styles which reflect established architectural traditions;
C. Encourage public knowledge, understanding and appreciation of the city's past, and foster civic and neighborhood pride and sense of identity based upon the recognition and use of the city's historic resources;
D. Stabilize and improve property values within the city and increase the economic and financial benefits to the city and its inhabitants derived from the preservation, rehabilitation, and use of historic resources;
E. Integrate the conservation of historic resources into the public and private development process and identify as early as possible and resolve conflicts between the preservation of such resources and alternative land uses; and
F. Fulfill the city's responsibilities for Federal Section 106 reviews and for the California Environmental Quality Act.
(Ord. No. 2011-363, § 1, 3-8-2011)
12.44.020 Area of application.
This chapter shall apply to all historic resources listed in the historic resources inventory, historic landmarks and properties, and structures.
(Ord. No. 2011-363, § 1, 3-8-2011; Ord. No. 2017-437, § 1, 3-13-2018)
12.44.030 Definitions.
For the purposes of this chapter, the following words and phrases shall have the meanings respectively ascribed to them in this section, unless the context or the provision clearly requires otherwise:
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"Alteration" means any act or process that changes any portion of the exterior architectural appearance of a structure or object, including, but not limited to, the erection, construction, reconstruction, removal of exterior architectural features or details, or the addition of new structures, but does not include painting, ordinary maintenance and landscaping.
"California Historical Building Code" is Part 8 of Title 24 (State Building Standards Code) and applies to all qualified historic structures and sites, designated under federal, state and local authority. It provides alternative building regulations for the rehabilitation, preservation, restoration or relocation of structures designated as qualified historic buildings.
"California Office of Historic Preservation" means the governmental agency primarily responsible for the statewide administration of the historic preservation program in California. "California Register of Historical Resources" is a comprehensive listing of California's historical resources, including those of local, state and national significance. "Character defining features" means the defining elements, such as prominent architectural features, materials, craftsmanship or other elements, that, individually or in combination, identify a historic property, building or landscape.
"Commission staff" means the staff liaison assigned to the historical commission. "DPR 523" means the California Department of Parks and Recreation Historic Resource Inventory Forms used for historic evaluations. The DPR 523A form provides descriptive information about a resource. The DPR 523B form provides an evaluation of the resources and includes a determination as to whether the resource is eligible for the National or State Register of Historic Places or listing on the Los Altos Historic Resources Inventory. "Exterior architectural feature" means the architectural elements embodying style, design, general arrangement and components of all the outer surfaces of an improvement, including but not limited to, the kind, size, shape and texture of building materials, and the type and style of windows, doors, lights, signs and other fixtures appurtenant to such improvement.
"Historic landmark" means a building, improvement, structure, natural feature, site or area of land, under single or common ownership that has significant historical, architectural, cultural, and/or aesthetic interest or value, and is designated as a historic landmark by the city council. "Historic resource" is a property or structure that has been determined to be over fifty (50) years old, retains its physical integrity, has historical, architectural, cultural, and/or aesthetic value, and is listed on the historic resources inventory.
"Historic resources inventory" means the city's official inventory of the historic resources, as adopted and amended from time to time by resolution of the historical commission and/or the city council. A property or structure must be designated as a historic landmark or a historic resource in order to be listed. "Historical commission" is a seven-member advisory commission appointed by the city council that is tasked with maintaining the historic resources inventory, making recommendations on historic landmarks, working with property owners on preservation, maintenance and other development activities related to historic resources, and other activities as identified in the municipal code.
"Improvement" means any building, structure, parking facility, wall, work of art or other appurtenance or addition thereto constituting a physical betterment of real property or any part of such betterment. "Integrity" is the authenticity of the characteristics, also referred to as character defining features, from which resources derive their significance. Integrity is the composite of seven qualities: location, design, setting, materials, workmanship, feeling and association.
"Mills Act" is an economic incentive program in California for the restoration and preservation of qualified historic structures. Enacted in 1972, the Mills Act grants participating local governments the authority to enter into
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contracts with owners of qualified historic properties to reduce the property tax assessment in exchange for the restoration and maintenance of the historic resource.
"National Register of Historic Places" is the official inventory of districts, sites, buildings, structures and objects significant in American history, architectural, archeology and culture, maintained by the Secretary of Interior under the authority of the Historic Sites Act of 1935 and the National Historic Preservation Act of 1966. "Preservation" means the act of identification, study, protection, reconstruction, restoration, rehabilitation or enhancement of historic and/or cultural resources.
"Reconstruction" means the act or process of reproducing by new construction, the exact form and detail of a vanished building, structure or any part thereof, as it appeared at a specific period of time. "Rehabilitation" means the act or process of returning a property to a state of utility through repair or alteration that makes possible an efficient contemporary use while preserving those portions or features of the property which are significant to its historical, architectural and cultural value. "Restoration" means the act or process of accurately recovering the form and details of a property and its setting as it appeared at a particular period of time by means of the removal of later work or by the replacement of missing earlier work.
"Secretary of Interior's Standards" are the Federal Standards for the Treatment of Historic Properties that are utilized in the identification, evaluation, registration and treatment of historic properties. The list of ten (10) Rehabilitation Standards, published as the Secretary of the Interior's Standards, is aimed at retaining and preserving those features and materials that are important in defining the historic character of a resource. (Ord. No. 2011-363, § 1, 3-8-2011; Ord. No. 2017-437, § 1, 3-13-2018) Article 2. Designation of Historic Resources
12.44.040 Criteria for designation.
A structure, property or object may be eligible for designation as a historic resource or historic landmark, if it/they satisfy each of the three criteria listed below:
A. Age. A structure or property should be more than fifty (50) years in age. (Exceptions can be made to this rule if the building(s) or site(s) is/are truly remarkable for some reason - such as being associated with an outstanding architect, personage, usage or event).
B. Determination of Integrity. A structure or property should retain sufficient historic integrity in most of the following areas:
1. Design: The combination of elements that create the form, plan, space, structure and style of a property.
2. Setting: The physical environment of a historic property.
3. Materials: The physical elements that were combined or deposited during a particular period of time and in a particular pattern or configuration to form a historic property.
4. Workmanship: The physical evidence of the crafts of a particular culture or people during any given period in history or prehistory.
5. Feeling: A property's expression of the aesthetic or historic sense of a particular period of time.
C. Historic Significance. A structure or property should be clearly associated with one or more of the following areas of significance:
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1. Event: Associated with a single significant event or a pattern of events that have made a significant contribution to broad patterns of local or regional history, or cultural heritage of California or the United States;
2. Person/People: Associated with the lives of persons important to the local, California or national history;
3. Architecture/Design: Embodies the distinctive characteristics of a design-type, period, region or method of construction, or represents the work of a master or possesses high artistic value; or
4. Archaeology: Yields important information about prehistory or history of the local area, California or the nation.
The city's historic resource evaluation methodology, which provides more details about the above listed criteria, is available from the planning division.
(Ord. No. 2011-363, § 1, 3-8-2011; Ord. No. 2017-437, § 1, 3-13-2018)
12.44.050 Applications for designation.
A. Applications for designation as a historic landmark, or listing a historic resource on the historic resources inventory may be initiated by the owner or owners of a building, improvement, structure, natural feature, site or area of land, requesting designation of their property as a historic resource or historic landmark.
B. The city council or the planning commission may, by resolution or motion, refer a proposed designation to the historical commission. The historical commission may also consider a proposed designation upon its own initiative or by referral by the development services director.
C. Applications for designation as a historic landmark, or listing a historic resource on the historic resources inventory shall be made to the historical commission. Applications must be accompanied by such historical and architectural information as is required by the historical commission in order to make an informed recommendation concerning the request.
Applications for designation shall be acted on as set forth in sections 12.44.050, 12.44.060 and 12.44.070 of this chapter.
(Ord. No. 2011-363, § 1, 3-8-2011; Ord. No. 2017-437, § 1, 3-13-2018; Ord. No. 2023-490, § 2(App. A), 3-28-2023)
12.44.060 Historic resource listing.
A. Once the application for designating a property as a historic resource and listing it on the historic resources inventory has been received, the historical commission shall consider the request at its next available scheduled meeting.
B. The commission shall conduct a public hearing to consider the proposed listing. Notice of the hearing shall be given at least ten (10) days prior to the date of the hearing by mail to the applicant, to the owner or owners of the property and to the owners of abutting properties, and by posting a notice on the property near the front property line in accordance with the standards set by commission staff.
C. The commission shall consider the proposed historic resource and determine whether or not the property satisfies the three criteria outlined in Section 12.44.040. The commission shall by motion either approve or disapprove the designation of the property as a historic resource and listing it in the historic resources inventory.
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D. If the commission approves the historic resource for listing on the historic resources inventory, the listing shall become effective immediately and the designated property shall be subject to the regulations set forth in this chapter.
E. Until final action has been taken by the commission on the request to list a property, no building, alteration, grading, demolition or tree removal permit(s) shall be issued for any work to be performed upon or within the subject property, unless approved by the historical commission or the development services director.
This restriction shall become effective as of the time the application is submitted, and shall extend until the commission has taken action.
F. Within fifteen (15) days of the action taken by the historical commission, the decision may be appealed to the city council. The appeal may be filed by the applicant or any interested party. (Ord. No. 2011-363, § 1, 3-8-2011; Ord. No. 2023-490, § 2(App. A), 3-28-2023)
12.44.070 Historic landmark designation.
A. Once the application for the proposed designation has been received, the historical commission shall consider the request at its next available scheduled meeting.
B. The commission shall conduct a public hearing to consider the proposed designation. Notice of the hearing shall be given at least ten (10) days prior to the date of the hearing by publication in at least one newspaper of general circulation within the city, by mail to the applicant, to the owner or owners of the property, and to the owners of abutting properties, and by posting a notice on the property near the front property line in accordance with the standards set by commission staff.
C. The commission shall make a recommendation to the city council on the proposed designation. In order to make a positive recommendation, the commission shall make the following findings:
1. That the proposed historic landmark satisfies the three criteria outlined in Section 12.44.040; and
2. That the proposed landmark has special historical, cultural, archeological, scientific, architectural or aesthetic interest or value as part of the heritage or history of the city, the county, the state or the nation.
D. The city council shall consider the proposed designation at its next available regular meeting and determine whether or not to accept the historical commission's recommendation. The city council shall by resolution either approve the proposed designation, in whole or in part or as modified, or shall, by motion, disapprove the proposal in its entirety.
E. If the city council approves the landmark designation, the resolution shall become effective immediately and the designated property shall be subject to the regulations set forth in this chapter and to such further restrictions or controls as may be specified in the designating resolution.
F. Adoption of a designating resolution by the city council shall be based upon the findings outlined in subsection (C) of this section.
G. Until final action has been taken by the city council on the proposed landmark, no building, alteration, grading, demolition or tree removal permit(s) shall be issued for any work to be performed upon or within the subject property, unless approved by the historical commission or the city council. This restriction shall become effective as of the time the application is submitted, and shall extend until the designating resolution becomes effective.
(Ord. No. 2011-363, § 1, 3-8-2011)
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12.44.080 Notice of designation.
A. Following adoption by the city council of a resolution designating a historic landmark, the commission staff shall send notice of the designation, together with a copy of the resolution or ordinance, to the owner or owners of the designated historic landmark. The city council also shall send notice of the designation to:
1. The Santa Clara County Historical Heritage Commission; and
2. The California State Historic Preservation Officer.
B. The designating resolution or ordinance shall be recorded with the county clerk-recorder. (Ord. No. 2011-363, § 1, 3-8-2011; Ord. No. 2017-437, § 1, 3-13-2018) Editor's note(s)—Ord. No. 2017-437, § 1, adopted March 13, 2018, repealed § 12.44.080, which pertained to historic district designation, and derived from Ord. No. 2011-363, § 1, adopted March 8, 2011, and subsequently renumbered the remaining sections 12.44.090—12.44.220 as 12.44.080—12.44.210. Historical notations for former sections have been retained for reference.
12.44.090 Termination of designation.
The only legitimate reason for terminating the designation of a historic resource or historic landmark is when clear evidence is presented that shows the resource no longer meets the criteria of Section 12.44.040 due to loss of integrity and/or historic significance.
(Ord. No. 2011-363, § 1, 3-8-2011; Ord. No. 2017-437, § 1, 3-13-2018) Editor's note(s)—Former § 12.44.100, see editor's note § 12.44.080.
Article 3. Permits
12.44.100 Applicability.
A. For historic landmark properties, a historical alteration permit (Section 12.44.150) is required in order to alter, demolish, remove, relocate or change any exterior architectural features of the designated landmark structure(s), or remove or relocate any improvements, structures or natural features that contribute to the integrity or the historic significance of the historic landmark.
B. For historic resources listed on the historic resources inventory, an advisory review (Section 12.44.140) is required in order to alter, demolish, remove, relocate or otherwise change in any manner any exterior architectural feature or natural feature that contributes to the integrity or the historic significance of a historic resource.
C. For subsection (B) of this section, the historical commission's review will take into account whether or not the proposed work adversely affects the physical integrity or the historic significance of the resource. The historical commission's recommendation to the development services director, planning commission, or city council, shall be advisory only.
D. For non-residential properties that are historic landmarks or historic resources, non-permanent improvements such as signage, awnings and landscaping that do not adversely affect the physical integrity or the historic significance of the resource may be exempted from historical commission review by the development services director.
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E. For residential properties that are historic landmarks or historic resources, improvements such as swimming pools, fences, minor accessory structures such as trellises or barbecues, and landscaping that do not adversely affect the physical integrity or the historic significance of the resource may be exempted from historical commission review by the development services director. (Ord. No. 2011-363, § 1, 3-8-2011; Ord. No. 2017-437, § 1, 3-13-2018; Ord. No. 2023-490, § 2(App. A), 3-28-2023) Editor's note(s)—Former § 12.44.110, see editor's note § 12.44.080.
12.44.110 Applications.
Applications for historical alteration permits or advisory review shall be submitted to the development services director. Applications shall include the following information:
A. A clear statement of the proposed work;
B. A site plan showing all existing buildings, structures, trees over six inches in diameter, property lines, easements and the proposed work;
C. Detailed plans showing both the existing and proposed exterior elevations, including a street elevation, photographs of windows and/or special features, materials and grading; D. Specifications describing all materials to be used and all processes that would affect the appearance or nature of the materials;
E. Notes indicating any deviation from the Secretary of the Interior's Standards for Historic Rehabilitation; and
F. Such other information or documents as may be requested by the development services director or the historical commission.
Applications shall be noticed as set forth in Section 12.44.120 and shall be acted on as set forth in Section
12.44.130 and 12.44.140 of this chapter.
(Ord. No. 2011-363, § 1, 3-8-2011; Ord. No. 2017-437, § 1, 3-13-2018; Ord. No. 2023-490, § 2(App. A), 3-28-2023) Editor's note(s)—Former § 12.44.120, see editor's note § 12.44.080.
12.44.120 Notice of public meetings.
A. Notification shall be provided when an application for a historical alteration permit is required for a historic landmark. Applicants shall be responsible for providing notification via first class mail to the adjoining property owners, in the manner set forth by the commission staff, at least ten (10) days prior to the meeting at which the application is to be reviewed. The property owners who shall be mailed notice include, but are not limited to, the following:
1. The two adjoining property owners on each side;
2. The three adjoining rear property owners; and
3. The five adjoining front property owners across the street.
4. As deemed appropriate or necessary, the commission staff may require that notification be mailed to a greater or lesser number of property owner(s) than are identified above based on the configuration of the properties adjoining the site of the application.
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5. Notice shall also be posted on the project site near the front property line in accordance with the standards set by the commission staff.
B. Notice shall be provided when an application for an advisory review is required for a historic resource.
Applicants shall be responsible for posting a notice on the project site near the front property line in accordance with the standards set by the commission staff. (Ord. No. 2011-363, § 1, 3-8-2011; Ord. No. 2017-437, § 1, 3-13-2018) Editor's note(s)—Former § 12.44.130, see editor's note § 12.44.080.
12.44.130 Advisory review.
A. For projects that require an advisory review, the historical commission shall complete its review and issue a recommendation at its next available scheduled meeting. In order to recommend approval, the commission shall find that:
1. The project complies with all provisions of this chapter; and
2. The project does not adversely affect the physical integrity or the historic significance of the subject property.
B. The historical commission recommendation shall be forwarded to the development services director, the planning commission, or the city council to be considered as part of their decision. (Ord. No. 2011-363, § 1, 3-8-2011; Ord. No. 2017-437, § 1, 3-13-2018; Ord. No. 2023-490, § 2(App. A), 3-28-2023) Editor's note(s)—Former § 12.44.140, see editor's note § 12.44.080.
12.44.140 Historical alteration permit.
A. For projects that require a historical alteration permit, the historical commission shall complete its review and issue a decision at its next available scheduled meeting. In order to approve a permit, the commission shall find that:
1. The project complies with all provisions of this chapter; and
2. The project does not adversely affect the physical integrity or the historic significance of the subject property.
3. The project is in compliance with the Secretary of the Interior's Standards for the Treatment of Historic Properties.
B. If the historical commission approves the historical alteration permit, or approves such permit subject to conditions, the development services director shall issue the permit in accordance with the recommendation, provided that no other approval is required under this code. In the event the historical commission recommends denial of the permit, the development services director shall notify the applicant that the requested permit will not be granted.
(Ord. No. 2011-363, § 1, 3-8-2011; Ord. No. 2017-437, § 1, 3-13-2018; Ord. No. 2023-490, § 2(App. A), 3-28-2023) Editor's note(s)—Former § 12.44.1500, see editor's note § 12.44.080.
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12.44.150 Appeal.
Within fourteen (14) days of any approval or denial by the historical commission, the decision may be appealed to the city council. The appeal may be filed by the applicant or any interested party and shall be accompanied by a fee to cover the administrative cost of handling the appeal as set by city council resolution. (Ord. No. 2011-363, § 1, 3-8-2011; Ord. No. 2017-437, § 1, 3-13-2018; Ord. No. 2023-490, § 2(App. A), 3-28-2023) Editor's note(s)—Former § 12.44.160, see editor's note § 12.44.080.
Article 4. Miscellaneous Provisions
12.44.160 Incentives for preserving historic resources.
A. California Historical Building Code. It is the purpose of the state historical building code to provide regulations and standards for the rehabilitation, preservation, restoration (including related reconstruction) or relocation as applicable to all historical buildings, structures and properties deemed of importance to the history, architecture, or culture of an area by an appropriate local or state governmental jurisdiction. Such standards and regulations are intended to facilitate the restoration or change of occupancy so as to preserve their original or restored elements and features, to encourage energy conservation and a cost effective approach to preservation, and to provide for reasonable safety from fire, seismic forces or other hazards for occupants and users of such "buildings, structures and properties" and to provide reasonable availability and usability by the physically disabled. The state historical building code is defined in sections 18950 to 18961 of Division 13, Part 2.7 of Health and Safety Code (H&SC) Health and Safety Code, a part of California Law.
B. Economic incentives. In order to carry out more effectively and equitably the purposes of this chapter, the city council may, by resolution, adopt a program of economic (i.e., Mills Act contracts) and other incentives to support the preservation, maintenance and appropriate rehabilitation of the city's historic resources. (Ord. No. 2011-363, § 1, 3-8-2011; Ord. No. 2017-437, § 1, 3-13-2018) Editor's note(s)—Former § 12.44.170, see editor's note § 12.44.080.
12.44.170 Hardship.
Notwithstanding the criteria of this chapter, the development services director, on the recommendation of the historical commission or the planning commission or city council on appeal, may approve an application for a permit to conduct any proposed work upon or within a historic resource or historic landmark if the applicant presents clear and convincing evidence demonstrating that a disapproval of the application will cause immediate and substantial hardship on the applicant because of conditions peculiar to the person seeking to carry out the proposed work or because of conditions peculiar to the particular improvement, building, structure, topography or other feature involved. If a hardship is found to exist under this section, the historical commission or the planning commission or city council shall make a written finding to that effect, and shall specify the facts and reasons relied upon in making such finding.
(Ord. No. 2011-363, § 1, 3-8-2011; Ord. No. 2017-437, § 1, 3-13-2018; Ord. No. 2023-490, § 2(App. A), 3-28-2023) Editor's note(s)—Former § 12.44.180, see editor's note § 12.44.080.
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12.44.180 Fees.
A. No fee shall be charged for the filing, processing or public noticing of any application for designation.
B. The city council shall by resolution adopt a schedule of fees to be charged for any application for termination of a designation, for the filing and processing of applications for any permit required under this chapter, and for appeals pursuant to this chapter.
(Ord. No. 2011-363, § 1, 3-8-2011; Ord. No. 2017-437, § 1, 3-13-2018) Editor's note(s)—Former § 12.44.190, see editor's note § 12.44.080.
12.44.190 Ordinary maintenance and repair.
Nothing in this chapter shall be construed to prevent the ordinary maintenance, painting, landscaping or repair of any exterior feature in or upon any historic resource or historic landmark that does not involve a change in design, material or the external appearance thereof, nor does this chapter prevent the construction, reconstruction, alteration, restoration, demolition or removal of any historic resource or historic landmark which has been certified by the city building inspector, or fire chief, or other code enforcement officer as being in unsafe or dangerous condition which cannot be rectified through the use of the California State Historic Building Code. (Ord. No. 2011-363, § 1, 3-8-2011; Ord. No. 2017-437, § 1, 3-13-2018) Editor's note(s)—Former § 12.44.200, see editor's note § 12.44.080.
12.44.200 Duty to keep in good repair.
A. The owner, occupant or the person in actual charge of a historic resource or a historic landmark shall keep and maintain in good condition and repair all exterior portions of the improvement or structure, and all interior portions thereof whose maintenance is necessary to prevent deterioration and decay of any exterior architectural feature or natural feature.
B. It shall be the duty of the development services director or their designee to enforce this section. (Ord. No. 2011-363, § 1, 3-8-2011; Ord. No. 2017-437, § 1, 3-13-2018; Ord. No. 2023-490, § 2(App. A), 3-28-2023) Editor's note(s)—Former § 12.44.210, see editor's note § 12.44.080.
12.44.210 Enforcement.
The violation of any provision contained in this chapter is hereby declared to be unlawful and shall constitute a misdemeanor, subject to the penalties as prescribed in Title 1, Chapter 1.20 of this code. (Ord. No. 2011-363, § 1, 3-8-2011; Ord. No. 2017-437, § 1, 3-13-2018) Editor's note(s)—Former § 12.44.220, see editor's note § 12.44.080.
City Council Staff Report
Meeting Date: September 30, 2025
Prepared By: Katie Krauss
Approved By: Gabe Engeland
Subject: Program Implementation - Drone as a First Responder
COUNCIL PRIORITY AREA
Public Safety
RECOMMENDATION
Authorize staff to move forward with the development and implementation of a Drone as First Responder (DFR) Program to enhance emergency response capabilities, improve situational awareness for first responders and promote public safety
ENVIRONMENTAL IMPACT
N/A
FISCAL IMPACT
The cost would be approximately $100,000 per year to operate a Drone as First Responder Program. The program costs include the FAA licensing, pilot training and dock infrastructure. There is sufficient funding for Year 1 that has been appropriated in the FY25/26 Operating Budget under the Public Safety Department. No additional appropriation is required at this time for the current fiscal year.
PREVIOUS COUNCIL CONSIDERATION
N/A
BACKGROUND
What is the current drone program at the Los Altos Police Department? The Unmanned Aircraft System (UAS) program at the Los Altos Police Department is designed to enhance public safety, support tactical operations and improve situational awareness during an emergency. Our current program includes two DJI drones that are operated by specially trained and FAA Part 107-certified pilots who deploy them for tasks such as search and rescue, traffic collision reconstruction, high risk incidents and crime scene documentation. The Los Altos Police Department follows strict policies and privacy guidelines in accordance with California state laws, including requirements for public transparency, data retention limits and usage audits. Overall, this program aims to provide aerial capabilities that improve response efficiency while maintaining public trust.
With the current UAS program, drone operation is reactive and usually occurs after an incident has been reported. Deployment of the drones takes longer due to travel time and set-up at the incident location.
Under our current program and FAA licensing, the drones must be operated manually by certified pilots with designated spotters who are both present at the location. Because of this requirement, the drone use is
mission based, not continuous. The drone can only be utilized when an authorized pilot is on-duty, and available solely for drone operation.
What is a Drone as First Responder (DFR) Program?
A Drone as First Responder program involves deploying Unmanned Aerial Systems (UAS, or drones) from strategic locations to the scene of an emergency immediately after a call for service is received in the dispatch center. The drone program can be fully integrated with the 911 dispatch systems for immediate response to calls for service. The drone typically arrives before police, fire or EMS units and transmits live video to officers while they are enroute. This real-time aerial intelligence allows for better tactical decisions and resource allocation. The purpose of implementing a DFR Program is to leverage technology to deliver faster, safer and more effective public safety services to the community. DFR programs have been successfully launched in many California cities, including Campbell, Atherton, Elk Grove and Vacaville.
What are the key differences between our current UAS program and a DFR program? Feature Current UAS Program Drone as First Responder (DFR) Program Mission Type Reactive, post-incident Immediate response to call for service Deployment Time Minutes to hours Seconds to a few minutes Operator Presence On-site operator Remote operator
Dispatch Integration Limited or none Can be fully integrated with 911 system Situational Awareness After arrival Real-time before officers arrive Use Case Investigations, planning Call response, scene assessment
ANALYSIS
N/A
DISCUSSION
DFR Benefits:
• Faster Response Times: Drones can be launched within seconds of a call for service, arriving on scene significantly faster than ground units. Depending on the location of the UAS docks, drones can arrive at a scene in under two minutes anywhere in the City of Los Altos, allowing early assessment of the incident. This allows for more informed deployment of emergency resources.
This will also increase apprehension of criminals and decrease overall crime. • Enhanced Situational Awareness: Live aerial video feeds give responding units real-time information before arrival. Officers can better understand the nature of the incident, identify potential threats, and prepare appropriate resources.
• Improved Community and Officer Safety: Drones can be used to monitor dangerous situations (e.g., armed suspects, hazardous materials, natural disasters) without immediately placing officers or community members in harm’s way. In the instances where a crime is occurring and the drone is overhead, the longstanding benefits of aerial support in crisis scenarios are undeniable. Real-time video feeds and communication from trained aerial observers have provided essential guidance, leading to safer and more effective outcomes on the ground. While helicopters have played this role for larger police departments for years, the advent of drones offers a modern, agile and accessible solution for proactive assistance across a wide range of emergency situations. DFR reduces the risk
to both officers and the public by offering a non-intrusive presence and early intelligence. • Resource Efficiency: By assessing calls remotely, drones may reduce the need for full ground response in certain situations (e.g., verifying false alarms or low-level incidents), allowing officers to remain available for higher-priority calls. The real-time aerial views of the scene assist officers in determining the severity of a situation, allowing proper resource allocation. In some cases, the information provided by the drone can eliminate the need for an officer response. For example, the video from the drone may reveal that a subject reported to be in possession of a weapon is in fact holding a cell phone, or that a vehicle blocking a driveway is in fact parked legally. DFR allows law enforcement to evaluate the nature of the call from a distance. If the person is not committing a crime, a determination can be made as to whether or not to contact the individual. • Transparency and Accountability: Drone deployments can be logged, tracked, and recorded, creating a clear record of use and reinforcing accountability in line with departmental policies and community expectations.
The Drone as First Responder program has demonstrated clear value in enhancing emergency response capabilities. Investment in this technology will further strengthen public safety, improve outcomes and position the city as a national leader in innovative emergency services.
DFR Challenges and Considerations:
• Privacy Concerns: Proactive community outreach and clearly defined policies are essential to address surveillance concerns and civil liberties. The drones are programmed to fly with the camera facing up as they respond to the scene to reduce the video capture of uninvolved vehicles or people.
Drones will not be used for general surveillance or random monitoring of the public. Drones are reactive in nature and are only deployed as a response to a call for service. Video data retention will follow established policies consistent with state law, best practices and current Los Altos Police Department policy. Information will never be shared for immigration enforcement. • Transparency: Policies and procedures governing drone use will be made available to the public.
Annual reports summarizing drone deployments, purposes and outcomes will be provided to ensure accountability and build public trust. Information will be posted on the City’s website with information related to each drone flight. If the purchase of a new drone is required in order to implement a DFR Program, this would fall under AB 481 Military Use Equipment. Staff would post all materials and information on the City website and would hold a publicized community meeting. Then the item would be brought to Council for approval on the AB 481 portion prior to purchasing any equipment.
• FAA Compliance: Requires coordination with the FAA for waivers and authorizations, which are handled by the vendors that offer DFR. Staff must be properly trained and certified to operate within FAA regulations.
• Operational Infrastructure: Requires dedicated personnel, drone docking stations, maintenance protocols, and secure video streaming platforms.
ATTACHMENTS
None
City of Los Altos 2025 Tentative Council Agenda Calendar All items and dates are tentative and subject to change unless a specific date has been noticed for a legally required Public Hearing.
Items may be added or removed from the shown date at any time and for any reason prior to the publication of the agenda.
October 14, 2025 – 7:00 p.m.
CONSENT:
• Adoption of Historic Preservation & Mills Act Ordinances • Amendment No. 13 to the Agreement with the City of Palo Alto RWQCP • Amendment to Harris & Associates Contract
• Acceptance of private donation for 999 Fremont
PUBLIC HEARING:
• Introduction to 2025 Building Codes Ordinance
DISCUSSION ITEM:
• MOU for the Woodland Library Patio Expansion
October 28, 2025 - 7:00 p.m.
CONSENT:
• Adoption of 2025 Building Codes Ordinances
DISCUSSION ITEM:
• Drone as a First Responder Program
The remaining 2025 City Council agenda calendar items are pending and will be published at a later date.
PROGRAM SUB PROJECT INITIATION DATE HEU COMPLETION DATE STATUS Program 2.D: Encourage and streamline Accessory Dwelling Units (ADUs).
Budget & Hire Planning
Technician December 31, 2022 COMPLETED
Program 2.D: Encourage and streamline Accessory Dwelling Units (ADUs).
Amend ADU Ordinance
based upon HCD's letter 6 months or less COMPLETED
Program 6.G: Housing mobility
Allow more than one
JADU (at least two per
site)
with ADU Ordinance
Update COMPLETED
Program 3.H: Amend design review process and
requirements.
Eliminate 3rd Party
Architectural Review February 28, 2023 COMPLETED
Program 3.H: Amend design review process and
requirements.
Dismiss Design Review
Commission February 28, 2023 COMPLETED
Program 3.L: Eliminate the requirement of story poles. March 31, 2023 COMPLETED Program 2.E: Conduct annual ADU rental income surveys.
Budget & Hire Housing
Program 4.J: Facilitate alternate modes of transportation for Manager March 31, 2023 COMPLETED residents.
Adopt VMT Policy &
Transportation Demand June 30, 2023 COMPLETED
Program 2.D: Encourage and streamline Accessory Dwelling Units (ADUs).
RFP-Permit Ready ADU
Plans July 31, 2023 COMPLETED
Program 1.H: Facilitate housing on City-owned sites. Financial Analysis July 1, 2023 December 31, 2023 COMPLETED Program 3.D: Evaluate and adjust impact fees. August 1, 2023 December 31, 2024 COMPLETED Program 1.H: Facilitate housing on City-owned sites. Release RFP December 31, 2023 COMPLETED Program 6.C: Target housing development in highest
resource areas. Initial Outreach September 31, 2023 COMPLETED Program 6.D: Promote Housing Choice (Section 8) rental
assistance program. September 31, 2023 COMPLETED
Program 2.A: Continue to implement and enhance
inclusionary housing requirements. December 31, 2023 ONGOING Program 2.B: Establish an affordable housing in-lieu fee and commercial linkage fee. Housing in-lieu fee. December 31, 2023 COMPLETED Program 2.F: Water and Sewer Service Providers. December 31, 2023 COMPLETED Program 3.B: Modify building height in mixed-use zoning districts. Downtown Districts December 31, 2023 COMPLETED Program 3.E: Ensure that the density bonus ordinance
remains consistent with State law. December 31, 2023 ONGOING
Program 3.H: Amend design review process and
requirements. Code Amendments December 31, 2023 COMPLETED Program 3.K: Standardize multimodal transportation
requirements.
Bicycle Storage and
Charging Regulations December 31, 2023 COMPLETED
Program 3.K: Standardize multimodal transportation
requirements.
Remove CSC Review of
Housing Developments December 31, 2023 COMPLETED
Program 4.C: Allow Low Barrier Navigation Centers
consistent with AB 101. December 31, 2023 COMPLETED
Program 4.D: Allow transitional and supportive housing
consistent with State law. December 31, 2023 COMPLETED
Program 4.E: Allow employee/farmworker housing
consistent with State law. December 31, 2023 COMPLETED
Program 4.F: Reasonably accommodate disabled persons’
housing needs. December 31, 2023 COMPLETED
Program 6.B: Maintain and expand an inventory of affordable housing funding sources. Prepare Inventory. December 31, 2023 COMPLETED Program 6.E: Prepare and distribute anti-displacement
information. December 31, 2023 COMPLETED
Program 1.A: Rezone for RHNA shortfall. January 31, 2024 COMPLETED Program 1.G: Rezone housing sites from previous Housing Elements. January 31, 2024 COMPLETED
Program 3.G: Amend Conditional Use Permits findings
applicable to housing developments. March 31, 2024 COMPLETED Program 3.I: Allow residential care facilities consistent with State law. January 31, 2024 COMPLETED
Program 3.J: Explicitly allow manufactured homes consistent with State law. January 31, 2024 COMPLETED
Program 3.F: Reduce Conditional Use Permit requirement for residential mixed-use and
multi-family. September 31, 2024 COMPLETED
Program 1.B: Facilitate higher density housing in the
Commercial Thoroughfare (CT) District. January 31, 2024 COMPLETED Program 1.C: Allow housing in the Office Administrative (OA) District. January 31, 2024 COMPLETED
Program 1.E: Update the Loyola Corners Specific Plan. January 31, 2024 COMPLETED Program 2.D: Encourage and streamline Accessory Dwelling Units (ADUs).
Adopt-Permit Ready ADU
Plans December 31, 2024 COMPLETED
Program 3.A: Prepare a Downtown parking plan and update citywide parking requirements. Downtown Parking Plan December 31, 2024 COMPLETED Program 3.A: Prepare a Downtown parking plan and update citywide parking requirements.
Comprehensive Parking
Ordinance Update December 31, 2024 COMPLETED
Program 3.B: Modify building height in mixed-use zoning districts.
Commercial
Neighborhood (CN)
District December 31, 2024 COMPLETED
Program 3.C: Remove floor-to-area ratio (FAR) restriction at Rancho Shopping Center and
Woodland Plaza. December 31, 2024 COMPLETED
Program 3.M: Modify parking requirements for emergency
shelters consistent with State
law. December 31, 2024 COMPLETED
Program 2.B: Establish an affordable housing in-lieu fee and commercial linkage fee. Commercial linkage fee. December 31, 2025 COMPLETED Program 1.D: Allow housing on certain Public and
Community Facilities District sites and
facilitate housing on religious institution properties. December 31, 2025 IN-PROGRESS Program 6.G: Housing mobility
Allow housing on all
religious sites within the
City December 31, 2025 IN-PROGRESS
Program 1.F: Rezone Village Court parcel. December 31, 2025 COMPLETED Program 4.H: Provide additional density bonuses and
incentives for housing that accommodates special needs
groups. December 31, 2025 IN-PROGRESS
Program 4.I: Allow senior housing with extended care
facilities in multi-family and mixed-use zoning districts. December 31, 2025 IN-PROGRESS Program 1.I: Incentivize Downtown lot consolidation. July 31, 2026 Program 4.G: Assist seniors to maintain and rehabilitate their homes. July 31, 2026 ONGOING
Program 6.C: Target housing development in highest
resource areas. Follow-up Outreach September 31, 2026
Program 1.H: Facilitate housing on City-owned sites. Entitlement Review December 31, 2026 Program 3.N: Modify standards in the R3 zoning districts. December 31, 2026 COMPLETED Program 4.J: Facilitate alternate modes of transportation for residents.
Capital Improvement
Project for above head
pedestrian crossing
signals on San Antonio
Road near Downtown Los
Altos December 31, 2027
Program 5.F: Incentivize the creation of play areas for multifamily housing projects. December 31, 2027 Program 1.K: Participate in regional housing needs planning efforts. Ongoing ONGOING
Program 1.L: General Plan amendments. Ongoing ONGOING
Program 1.M: SB 9 implementation. Ongoing ONGOING
Program 1.N: Facilitate and monitor pipeline housing
projects. Ongoing ONGOING
Program 2.C: Assist in securing funding for affordable
housing projects. Ongoing ONGOING
Program 2.D: Encourage and streamline Accessory Dwelling Units (ADUs). Ongoing ONGOING
Program 2.E: Conduct annual ADU rental income surveys. Annual Survey Annually ONGOING Program 4.A: Support efforts to fund homeless services. Ongoing ONGOING Program 4.B: Continue to participate in local and regional forums for homelessness,
supportive, and transitional housing. Ongoing ONGOING
Program 5.A: Monitor condominium conversions. Ongoing ONGOING Program 5.B: Continue to administer the City’s affordable housing programs. Ongoing ONGOING
Program 5.C: Restrict commercial uses from displacing
residential neighborhoods. Ongoing ONGOING
Program 5.D: Implement voluntary code inspection program. Ongoing ONGOING Program 5.E: Help secure funding for housing rehabilitation and assistance programs. Ongoing ONGOING
Program 6.A: Assist residents with housing discrimination and landlord-tenant
complaints. Ongoing ONGOING
Program 6.B: Maintain and expand an inventory of affordable housing funding sources.
Inform, Evaluate
Apply/Submit Ongoing ONGOING
Program 6.F: Affirmatively market physically accessible units. Ongoing ONGOING Program 7.A: Promote energy and water conservation and
greenhouse gas reduction
through education and awareness campaigns. Ongoing ONGOING Program 7.B: Monitor and implement thresholds and
statutory requirements of climate change legislation. Ongoing ONGOING
DATE: 9/30/2025
TO: COUNCILMEMBERS
FROM: CITY MANAGER’S OFFICE
SUBJECT: COUNCIL Q&A FOR SEPTEMBER 30, 2025 CITY COUNCIL REGULAR
MEETING
Agenda Item 2 (Short-Term Seat of Parks, Arts, Recreation & Cultural Commissioner):
x What is the plan to revisit the remaining open commission positions? Answer: Staff will be discussing this item with the Mayor and determining if it is a future agenda item.
Agenda Item 3 (Comprehensive General Plan Update - Professional Services Agreement):
x What consultant was used for the last revision of the General Plan, and what was the cost? Answer: That information is not available. To the best of the staff’s knowledge the General Plan was updated internally by previous city staff. x Are the optional tasks (implementation financing plan and web-based general plan, pp. 50- 51 of the packet) included in the amount before Council? Answer: These two tasks are not included in the project total; however, they could be added into the project cost now or in the future.
Agenda Item 4 (Outdoor Fitness Equipment Replacement at Hillview Park):
x What data, if any, is available about public usage of the existing fitness equipment? Answer: There is currently only observational assessments of the current equipment usage that is not statistically significant. It is used daily. x Resolution: “has reach it’s end of useful life” No apostrophe.
Answer: Resolution will be corrected.
Agenda Item 5 (Contract Amendment – Fremont Bridge Pedestrian Bridge):
x Does staff have the authority to reject a recommendation from the RWQCB and CDFW and move forward with an approach that they don’t approve?
Answer: The staff can reject the recommendation from RWQCB and the CDFW especially when it has a long-term impact. The mitigation that is being recommended by RWQCB and CDFW is to hydro-seed the slope embankment. This mitigation was previously recommended by RWQCB and CDFW for the vehicle bridge reconstruction.
Because the area is constantly shaded either by the existing tree or the bridge, the
hydro-seed never germinated. The vegetation that did germinate was eaten by wildlife.
The city applied another hydro-seed of the slope with no success. The intent of the change order is to propose a remedy that both RWQCB and CDFW will accept.
Mitigation that may be acceptable is contribution to a mitigation fund to stream restoration upstream of the Fremont bridge crossing.
x Dewberry Engineers stated that RWQCB has rejected most of the common solutions for erosion control and it doesn’t sound like Dewberry knows if they can come up with a solution that is acceptable to RWQCB and CDFW. When will we have more information about our ability to finish this project, and is there a risk we can’t complete it with a workable solution? Answer: The most common solution has already been proposed and rejected. RWQCB and CDFW want all possible solutions explored before they are willing to explore alternatives. Until all possible solutions and alternatives are explored, the project will remain at an impasse.
x The Background provided suggests the RWQCB and the City are at an impasse about erosion control, with the former insisting on hydroseeding and the latter reporting that hydroseeding consistently fails. How can we be sure that these funds will bring the project past this impasse?
Answer: Any proposals to resolve this matter do not guarantee the city will receive the necessary permits. The city must explore alternatives that may be acceptable to all parties. The other alternative is to accept the recommendation by RWQCB and CDFW but the city runs the risk of being required to hydro-seed annually until such time enough vegetation is present on the slope. Given past experience, staff does not see an easy solution to address the issue until all possible alternatives have been explored and rejected by the State. Once all alternatives have been considered, the State will be more open to negotiating to possible alternative solutions.
Agenda Item 6 (Accepting North Council Library Authority Funds for Main Library Improvements Project):
x What does ABA stand for?
Answer: ABA stands for Anderson Brule Architects.
Agenda Item 7 (Historic Preservation and Mills Act):
x On page 81 of Appendix A, does #3 apply to owner applications? Answer: Yes.
x Shouldn’t the proposed wording for #3 be dependent on how the policy question is addressed? The proposed wording is "3. … the owner(s) shall be notified of the proposed designation and given the opportunity to comment; however, owner consent is not required for designation to proceed.” Is #3 saying that because an owner has already submitted an application, that if they change their mind the designation could still move ahead regardless of their preference?
Answer: Yes, because designations can be made by Owners, Commission, and Council.
x How many Mills Act properties do we currently have in Los Altos? Answer: Seventeen (17).
x No mention is made of maintaining visibility of the property from the street, which has been an issue with some existing Mills Act properties. Can new contracts include provisions that the property must remain reasonably visible to the public from the street? Answer: Yes. The City Council can discuss including a provision that requires this to be maintained throughout the course of the contract terms. x 14.93.040 A 2 - Why strike “most”? Some historical resources may not meet all the following criteria but still be deemed historical. For example, the Neutra House is no longer in its original location, but meets all the other criteria.
Answer: This was a modification that was made after meeting with residents that have existing Mills Act Contracts. However, in general most criteria must be met to be determined as a resource.
x 14.93.040 A 2 - If “most” is struck, then “of” should also be struck.
Answer: Correct.
x 14.95.060 B 2 - Why strike the requirement that all owners must indicate they agree with the application? This requirement seems like a minor burden, and a circumstance where one owner acted without consensus could cause thorny complications.
Answer: This was a modification that was made after meeting with residents that have existing Mills Act Contracts.
x 14.95.060 B 2 - The OHP Technical Assistance document describes a Qualified Historic Property as including “locally designated landmarks.” (p. 104 of the packet). Does this imply also including locally designated resources?
Answer: Yes.
Agenda Item 8 (Drone as First Responder):
x Have any sessions been conducted for public education and feedback regarding the proposed DFR program?
Answer: We have discussed the program with various community members at multiple community events, such as our National Night Out Event, as well as several neighborhood meetings and crime prevention meetings. The majority of the feedback has been positive. It has also been discussed with the LARE group in Los Altos. We will be holding a community meeting on Wednesday, October 15, 2025, from 5-6pm at the Los Altos Community Center to discuss the program as it relates to Assembly Bill 481 (Military Equipment Use Policy).