Los Altos Hills City Council
August 17, 2023

Staff Report to the City Council Page 3
Introducing SB 9 Permanent Ordinance
August 17, 2023
On August 3, 2023, the Planning Commission reviewed the second version of the draft ordinance that incorporated the changes per Planning Commission’s direction at the July 27’s Study Session and staff’s recommended changes for the final draft ordinance (Attachment 3). After the public hearing and Planning Commission’s deliberation, the Commission voted 3-2 to adopt a resolution recommending to the City Council the proposed SB 9 Ordinance presented to the commission inclusive of certain changes. The proposed ordinance as recommended by the Commission is attached for the Council’s consideration as Attachment 1 and 1a to this report.

In addition to its recommendation on the proposed permanent ordinance, the Commission also desired to forward to the City Council its comment regarding the utilization of basements as an incentive for SB 9 developments. This comment will be explained in the section below along with a summary of the proposed ordinance requirements.

August 17, 2023 City Council Meeting
As the urgency ordinance expires in October 2023, the Town must adopt a permanent ordinance to be in effect before the expiration date in order to continue enforcing local regulations and avoid a lapse between the urgency ordinance expiration date and the permanent ordinance effective date.

Otherwise, any SB 9 applications submitted during the absence of local regulations are subject to the state law which only contains minimal development and design regulations and not any of the local regulations in the interim ordinance. The timeline below is critical to timely adopt the permanent ordinance in effect prior to the urgency ordinance expiration date. • August 17, 2023- the City Council will consider the SB 9 Permanent Ordinance for first reading and introduction at a public hearing.
• If introduced, September 20, 2023 September 21, 2023 would be the City Council Regular Meeting for second reading and adoption. Adoption must occur at a regular meeting. • Once adopted, the SB 9 Permanent Ordinance would be in effect on the 31st day after adoption.

For instance, if adopted on September 20 September 21, the ordinance would be effective on October 21 October 22, 2023.

Additional Legislative Developments Regarding SB 9
Staff also wishes to bring to the Council’s attention recent legislative developments regarding SB

9. In 2023, Senate President pro-Tempore Toni G. Atkins (D-San Diego) introduced Senate Bill 450 to modify and strengthen certain provisions of SB 9 as a part of the legislative efforts to promote the ministerial review process and utilization by applicants and property owners. SB 450 passed Senate on May 12, 2023, and is currently with the Assembly for hearing. If adopted as currently proposed, SB 450 would do the following, among other changes:
• Prohibits local governments from imposing objective zoning, subdivision, and design standards that do not apply uniformly to development within the underlying zone. This means that cities cannot adopt standards and regulations that specifically apply to SB 9 but not to other residential developments in the underlying zone.
• Require local governments to either approve or deny an application for a new SB 9 unit or lot split within 60 days.
• Provide additional enforcement authority to the California Department of Housing and Community Development’s (HCD) over SB 9 developments.

Staff Report to the City Council Page 4
Introducing SB 9 Permanent Ordinance
August 17, 2023
If adopted as-written, these changes under SB 450 would apply to proposed and existing zoning and development regulations. At this time, SB 450 has yet to be approved by the Legislature and has not been signed into law. It is uncertain whether any additional changes may be made to the bill as it moves forward in the legislative process. Since SB 450 is not currently governing law, the foregoing information is provided for the City Council’s information only as an update. As with any legislative change, if the bill is approved and signed into law, the Town would have to review its permanent SB 9 ordinance and make amendments as necessary to ensure consistency with statutory requirements.

NOTICING/PUBLIC OUTREACH
The Study Session was noticed as a Public Hearing and notice was provided to the public. The public was advised of this Public Hearing in the following ways:
• Public Newspaper – Town Crier – August 3, 2023
• Public Posting Places – August 4, 2023
• Town Website: www.losaltoshills.ca.gov – August 11, 2023 • City Manager Weekly newsletter – June 23 and 30, July 7, 14, 21, 28, August 4, and 11 As of August 11, 2023, staff received one (1) public comment (Attachment 4).

DISCUSSION
The proposed SB 9 permanent ordinance implements local regulations that are tailored to Los Altos Hills and are consistent with its Housing Element as well as state law. To illustrate, the draft permanent ordinance carries over certain regulations from the interim ordinance, and makes other changes based on the Town’s experience in processing SB 9 applications during the interim period. The following sections highlights and summarizes major regulatory components, including development and design standards, proposed in the draft permanent ordinance.

Definitions
The permanent ordinance redefines “primary dwelling” and adds three definitions of “adjacent parcel,” “SB 9 Lot Split,” and “SB 9 Lot” to provide consistent reference throughout the draft ordinance. In particular, SB 9 Lot refers to lots created through SB 9 Lot Split, not including the lots accommodating SB 9 Units only.

SB 9 Lot Split
The permanent ordinance includes application materials for tentative map and final map based on the information required for standard subdivisions in the Town, pursuant to Municipal Code Section 9-1.504, 9-1.1205, and the Subdivision Application Packet. In addition, detailed SB 9 Lot Split review procedures are added to the permanent ordinance, requiring the tentative map and final map to be reviewed ministerially by the Community Development Director without public hearings. The draft ordinance also clarifies the Community Development Director’s decision shall be final. These edits are included for consistency with state law and to create a streamlined review process for such ministerial lot split projects.

Staff Report to the City Council Page 5
Introducing SB 9 Permanent Ordinance
August 17, 2023
The following development standards of SB 9 Lot Split are proposed or clarified in the draft permanent ordinance.
• Maximum number of units permitted on parcels created through SB 9 subdivisions. • Location, height, and massing requirements to rebuild existing structures. • Maximum depth to width ratio of 3:1 for a newly created lot. • Shared driveway options as identified in graphics.

To be consistent with the state law, applicable development standards for SB 9 Lot Split would be waived by the Community Development Director if the applicable regulation at issue would physically preclude the construction of two SB 9 Units on either resulting parcel or would result in an SB 9 Unit of less than nine hundred (900) square feet in floor area.

Please be advised that an errata sheet has been prepared for the draft ordinance to make additional clerical corrections discovered after the publication of the agenda. Staff would like to note that one clerical modification is proposed to Section 9-1.1601 (h) as below. The change is to reflect the ordinance’s intention, as recommended by the Planning Commission, that all existing and proposed easements would be identified on the tentative map for SB 9 Lot Split. (a) Location, width, and character of all existing and proposed easements including but not limited to easements for pathways, open space, conservation or agricultural purposes, utilities, equestrian uses,drainage, water, sewage, public utilities, together with the location and approximate dimensions of any existing buildings and structures, driveways, pools, hardscape, retaining walls, septic tanks, leach fields, wells, active or abandoned, and proposed disposition;
SB 9 Development Standards
The sections below provide a brief overview of the current baseline development standards for SB 9 units under the Town’s interim urgency ordinance, which are ministerially approved housing units in accordance with state law including the required 4-foot side and rear setbacks; the potential incentives options to encourage applicants to provide a 30-foot side and rear yard setback as specified in the underlying zoning districts and voluntarily offer easements to the Town, which is required for any new primary residences (except ADUs) in the Town that are discretionarily reviewed.

Baseline
Currently, under the interim SB 9 ordinance set forth in Los Altos Hills Municipal Code (LAHMC) Section 10-1.1507, SB 9 units are required to meet the following standards. • Forty (40)-foot front and four (4)-foot side and rear setbacks for any new SB 9 units. • Maximum eight hundred (800) square-foot floor area for one (1) SB 9 unit on any lot regardless of maximum floor area calculations.
• Maximum sixteen (16) – foot building height.
• Maximum number of units: two (2) SB 9 Units, ADU, JADUs as required by the Town’s ADU Ordinance and state law.

Staff Report to the City Council Page 6
Introducing SB 9 Permanent Ordinance
August 17, 2023
• For lots created by an SB 9 Urban Lot Split, MDA is MFA plus additional 2,100 square feet.
• No basement, bunkers, roof decks, and balconies are permitted. • One parking space is required outside of the 40-foot front and 30-foot rear and side setbacks of the underlying zoning districts.
• SB 9 units are not permitted in conservation easements, within twenty-five (25) feet of the top of a creek bank, within critical root zones, within ten (10) feet of parcel line next to a pathway, and in areas with slopes greater than forty (40) percent.

Most of these standards are proposed to remain and be carried over to the permanent ordinance per Planning Commission’s recommendation, with the following modifications:
• Maximum one nine (900) square-foot floor area for one (1) SB 9 unit.

As noted above, the Town’s 2023-2031 Housing Element strategies commit to promoting and encouraging SB 9 developments including Program B-10 to allow larger SB 9 units and include development incentives. For example, Programs B-10 states the following commitment: “allow(s) SB 9 units constructed on newly created SB 9 parcels to have default floor areas greater than 800 square feet as currently stated in the interim ordinance, and require compliance with the Town’s objective design standards which will be prepared as a part of the permanent ordinance.” To implement these Housing Element strategies, the proposed ordinance would set the baseline default size for one SB 9 unit at 900 square feet regardless of maximum floor area calculations. This default size applies to any parcel and provides a 100-square-foot expansion from the current 800 square feet default size in the interim ordinance. The rationale behind the 900 square feet default size is that it provides the opportunity for the SB 9 unit to construct an additional bedroom (which is commonly approximately 100 square feet minimum) to facilitate development and utilization of the unit. Additionally, the Town’s ADU ordinance currently allows ADUs, which are secondary dwelling units, to be up to one thousand (1,000) square feet with available development capacity while maintaining four-foot side and rear setbacks. Thus, it is reasonable for the Town to provide a default size of 900 square feet for SB 9 units which are primary dwellings to encourage their use and development. This is consistent with state law requirement that a certain size of SB 9 units must be allowed on single-family lots and the Housing Element goals to promote these units.
• SB 9 units are not permitted in areas with slopes greater than thirty (30) percent instead of forty (40) percent.
• Parking requirement is modified to be consistent with ADU parking requirements so that the space may be provided as tandem parking within the standard setback areas.
• Modification of “Minimum MFA and MDA” for Calculation of Development and Floor areas. Currently, Municipal Code Sections 10-1.502 (c) and 10-1.503 (c) provides that each lot will be able to receive at least 5,000 square feet of MFA and 7,500 square

Staff Report to the City Council Page 7
Introducing SB 9 Permanent Ordinance
August 17, 2023
feet of MDA (in the case of lots with LUF equal or less than 0.5 requiring a Conditional Development Permit, these figures are 2,500 square feet of MFA and 4,500 square feet of MDA, or as granted by the applicable site development authority). The proposed ordinance removes this requirement for all substandard lots (LUF less than 1.0) that are created after the proposed ordinance has been adopted and goes into effect. Please note this requirement does not impact how current MFAs and MDAs are calculated for standard and substandard lots that have already been created and currently existing.

Additionally, SB 9 units are required to comply with objective design and development standards set forth in the proposed ordinance. These include location requirements, sewer connection, driveway access, objective grading requirements, lighting and landscape/tree removal requirements, and applicable building code/fire code requirements. As required by state law, objective design, location and development standards would be waivable by the Community Development Director so as not to physically preclude the construction of up to two (2) units on one lot and for one unit to be at least nine hundred (900) square feet, except that SB 9 units will need to comply with all Building Code requirements and will not be allowed to encroach into any recorded easement. The section further below provides more details regarding objective standards requirements.

Incentives for Compliance with Standard Development Regulations In addition to standard, objective development regulations, the Town also proposes an option to include various development incentives to provide an opportunity for applicants to receive development bonuses in exchange for voluntary compliance with additional development requirements that do not apply to SB 9 units per state law. Availability of incentives may encourage voluntary compliance with standards that are stricter than what state law requires and may further preserve the Town’s development pattern and characteristics. It is important to note that all SB 9 applicants would continue to be able to utilize the ministerial SB 9 development process and have their units approved in the same streamlined manner, regardless of any incentives that the Town may choose to provide.

To qualify for the incentives, the proposed SB 9 development must meet the following criteria to comply with the development standards of the underlying zoning district. (1) Criteria for Development Incentives:
• The proposed SB 9 Unit meets the 40-foot front and 30-foot side and rear setbacks. • The applicant or property owner proposes to dedicate to the Town all the following as applicable:
o For any parcel, a public right-of-way interest pursuant to Section 9-1.703. o For a parcel with a slope equal to or exceeding thirty percent (30%), an open space easement covering the entire sloped area.
o For a parcel containing a creek identified in General Plan, an open space easement providing at least a twenty-five (25) feet buffer zone from the top of the creek bank. o For a parcel with a proposed pathway identified on the Town’s Pathway Master Plan, a pathway easement of at least ten (10) feet in width covering the identified pathway segment.

Staff Report to the City Council Page 8
Introducing SB 9 Permanent Ordinance
August 17, 2023
(2) Development Incentives- applicable if both setback and dedication criteria above are met:
• The parcel may calculate its maximum floor area (MFA) and maximum development area (MDA) in accordance with the Town’s LUF formula.
• Of said MFA permitted, two thousand (2,000) square feet would be the maximum size for the development of one (1) SB 9 Unit, if the Lot Unit Factor (LUF) is less than or equal to 0.5; three thousand (3,000) square feet would be the maximum size for the development of one (1) SB 9 Unit, if the LUF is greater than 0.5. • The maximum height remains sixteen (16) feet for an SB 9 unit receiving development incentives. During previous public meetings, the Planning Commission considered to include in the incentives program a nineteen (19)-foot maximum height to align with the maximum height for an ADU located outside the standard setbacks in the Town and thereby encourage the utilization of said program, but ultimately reached a consensus to maintain the sixteen (16)-foot maximum height for all SB 9 Units regardless of incentives.
• A basement would be permitted for SB 9 Units subject to the requirements of Section 10-1.202 and the setback requirements under Section 10-1.505, which also apply to any light wells and roof eaves.
• The basement level floor area is included in the floor area calculation if any portion of the basement is “daylighted” (visible above ground).
• The lightwell for the basement shall be three (3) by nine (9) feet in size per bedroom and meet the requirements for ingress and egress under the California Building Code (CBC) or California Residential Code (CRA).
• Required Parking. The parking spaces at least ten (10) feet wide by twenty (20) feet deep are required based on the floor area of the proposed SB 9 units listed below.

Floor Area Number Forms Setbacks
Under 1000 square feet 1 uncovered Permitted in the Setback areas 1,000 to 1,600 square feet 1 uncovered Outside the 40-foot front and 30-foot rear and side setbacks 1,600 to 2,400 square feet 3 uncovered 2,400 to 3,000 square feet 4 At least Two
(2) covered
No more than seven (7) parking spaces, including covered and uncovered, shall be allowed on any lots.

As mentioned in the first section of this report, the Commission also desired to forward a comment regarding including basements as an incentive for SB 9 developments to the City Council for consideration. While the draft ordinance recommended by the Commission includes basements as a development incentive for SB 9 units that adhere to standard setbacks and dedicates easements, some commissioners thought that the incentives program should reserve basements until a later time when the Town can evaluate whether the incentives program is effective. Since the inclusion of basements is a development incentive and not a baseline requirement, the Town has the option of including or removing it from the incentives program.

Staff Report to the City Council Page 9
Introducing SB 9 Permanent Ordinance
August 17, 2023
At the same time, the Council should consider whether the removal of basements from the list of incentives would make the incentives program desirable enough for applicants to utilize. The Council should keep these considerations in mind when it evaluates the incentives program.

Objective Design Standards
The proposed permanent ordinance incorporates as objective standards the Town’s Grading Policy, Outdoor Lighting Policy, and Metal Roof Policy, as well as the standard condition of approval for Light Reflective Value (LRV) requirements for exterior walls and roofs. In addition, the following objective design standards are included to guide SB 9 development to be consistent with the standard single-family residential development in the underlying zoning district. • For a detached unit greater than 1,000 square feet in floor area or an attached unit, the exterior materials and design shall match the design of any existing primary dwelling unit on the parcel. If future additions increase the total floor area of an existing SB 9 unit to be greater than 1,000 square feet, this provision applies. • Detached dwelling units will be required to maintain no less than ten (10)-foot separation between units as measured from the exterior walls. • Building features and equipment, such as operable doors, attached HVAC, generators, hardscape, and temporary construction equipment, are required to maintain a minimum 10-foot setback from any property line.
• Windows may not occupy more than 33% of any façade of an SB 9 unit, and must install “privacy glass” if the distance is less than ten (10) feet between the windows and the property line and the window is less than six (6) feet high). • An arborist report is required for construction within the driplines of any trees with trunk diameters of twelve (12) inches or greater to identify a heritage oak tree. • Objective landscape screening standards are included for baseline and incentivized SB 9 development.
• WELO calculations and landscape deposit required for other residential development projects are required for proposed landscape associated with SB 9 units.

NEXT STEP
If introduced for adoption, the permanent SB 9 Ordinance would be scheduled for second reading and adoption at the September 20 September 21, 2023 City Council Regular Meeting. Once adopted, the SB 9 Permanent Ordinance would be in effect after 30 days from adoption before the expiration of the interim ordinance on October 31, 2023.

ENVIRONMENTAL REVIEW
SB 9 state law exempts local ordinances implementing SB 9 from California Environmental Quality Act (CEQA) requirements. Therefore, CEQA is not applicable and the ordinance is exempt from CEQA.
2023 CITY COUNCIL STRATEGIC PRIORITIES

Staff Report to the City Council Page 10
Introducing SB 9 Permanent Ordinance
August 17, 2023
This is part of 2023 City Council Priorities under ‘Quality of Life and Community Character,’ and satisfies the milestone “Adopt SB 9 Ordinance” under the key project “Permanent SB 9 Ordinance.”

FISCAL IMPACT
There are sufficient funds in the FY2023-24 Operating Budget to cover staff and City Attorney’s time and no additional funds need to be appropriated.

ATTACHMENTS

1. Ordinance and Draft SB 9 Permanent Ordinance—Exhibit A (proposed regulations)

1.a. LAH SB 9 Ordinance Errata Sheet

2. July 27 Planning Commission Study Session Staff Report and Draft Ordinance (Version 1)

3. August 3 Planning Commission Staff Report and Draft Ordinance (Version 2)

4. Public Comments – Redacted

5. Draft Minutes – August 3 Planning Commission Meeting 5435626.1

ORDINANCE ______
AN ORDINANCE OF THE TOWN OF LOS ALTOS HILLS AMENDING TITLE 9 (SUBDIVISIONS AND PLAN LINES) AND TITLE 10 (ZONING AND SITE DEVELOPMENT) OF THE LOS ALTOS HILLS MUNICIPAL CODE TO ADD ARTICLE 16 TO CHAPTER 1, AND ARTICLE 15 TO CHAPTER 1, RESPECTIVELY, ESTABLISHING REGULATIONS FOR THE SUBDIVISION AND DEVELOPMENT OF QUALIFIED SENATE BILL 9 PROPERTIES WHEREAS, a severe housing crisis exists in the state with the demand for housing outstripping supply;
WHEREAS, in September 2021, Governor Newsom signed into law Senate Bill 9 (“SB 9”), entitled the “California Home Act”. Among other provisions, this bill adds Sections 65852.21and 66411.7 to the Government Code, and became effective on January 1, 2022.

WHEREAS, SB 9 requires cities and counties, including the Town of Los Altos Hills (“Town”), to ministerially approve a parcel map for an urban lot split and/or a proposed housing development containing a maximum of two residential units within a single-family residential zone, if the twounit or subdivision project meets certain statutory criteria. SB 9 specifies that proposed projects and subdivisions cannot be situated in prohibited locations under Government Code Section 65913.4(a)(6)(B)-(K), such as in an earthquake fault zone, lands under conservation easement, a federally designated flood plain, and high fire hazard severity zones as defined under state law.

WHEREAS, SB 9 further restricts the standards and regulations that local agencies, including the Town, may impose on qualifying two-unit or subdivision projects. For example, SB 9 specifies that local agencies may impose only objective zoning, subdivision, and design standards that do not conflict with the statutes, but such standards must not physically preclude a unit size of 800 square feet. In addition, SB 9 permits a local agency to deny a proposed two-unit or subdivision project only if the agency’s Building Official makes a written finding based on preponderance of the evidence that the proposed project would have a specific, adverse impact upon public health and safety or the physical environment, which is a very high standard for municipalities to meet under the statute.

WHEREAS, initially on December 16, 2021, pursuant to duly noticed public hearings, and subject to findings of urgency specifying the circumstances constituting the need for the immediate preservation of the public peace, health, and safety, the Town of Los Altos Hills adopted an urgency ordinance and further extended it for an additional twenty-two (22) months and 15 days to October 31, 2023 to establish certain regulations for Senate Bill (SB) 9 units in light of the need for the immediate preservation of the public health, safety and welfare as specified in the findings supporting the urgency ordinance and its extension.

WHEREAS, the Town’s 2023-2031 Housing Element considers SB 9 developments an important part of the Town’s site inventory and housing strategy; the Housing Element included a number of programs to remove constraints, and encourage and facilitate SB 9 unit developments in Los Altos Hills. This includes the adoption of a revised, permanent SB 9 ordinance to replace the interim urgency ordinance, new Town policies “facilitating increased SB 9 production and increased density in the Residential-Agricultural (R-A) zone”, an SB 9 education program, and program to advertise vacant dwellings including SB 9 units to find tenants from the larger region.

WHEREAS, specifically, Program B-10 of the Housing Element states the following commitments: (1) Allow SB 9 units constructed on newly created SB 9 parcels to have default floor Attachment 1

areas greater than 800 square feet as currently stated in the interim ordinance, and require compliance with the Town’s objective design standards which will be prepared as a part of the permanent ordinance; (2) Allow SB 9 units the ability to obtain additional floor areas based on availability of Maximum Floor Area for the parcel and/or adherence to standard setbacks and easement dedication requirements as incentives. Maximum size of SB 9 units constructed on existing parcels will be determined through the Town’s Maximum Floor Area/Maximum Development Area formula applicable to single-family residential developments in Town; (3) Remove affordability restriction to promote development of units of all income levels, rather than only affordable units.

WHEREAS, as a part of the Town’s efforts to adopt a permanent SB 9 Ordinance, the Los Altos Hills Planning Commission formed an ad hoc committee at its October 6, 2022 meeting to undertake initial efforts at formulating relevant regulations.

WHEREAS, the ad hoc committee met several times over the course of many months, and the Planning Commission held three (3) duly noticed study sessions on a permanent SB 9 ordinance on December 12, 2022, February 15, 2023, and July 27, 2023, to provide public outreach and participation opportunities and to comprehensively discuss and review drafts of permanent ordinance and pertinent regulations.

WHEREAS, on August 3, 2023, the Planning Commission held a duly noticed public hearing to consider a proposed SB 9 permanent ordinance and, inclusive of certain changes proposed by the Commission, adopted a resolution recommending the City Council introduce and adopt said ordinance to replace the interim ordinance.

WHEREAS, the proposed permanent SB 9 ordinance is comprised of regulations that are (1) consistent with SB 9 statutes, state housing laws including the Housing Crisis Act and Housing Element Law, and with the Town’s 2023-2031 Housing Element inclusive of housing strategies to promote SB 9 development and Program B-10’s commitments; (2) oriented towards achieving the Town’s housing goals and implement its housing mobility, fair housing, and other regional housing obligation strategies and goals; and (3) utilize a carefully balanced approach and create objective zoning, design, and subdivision standards to preserve the Town’s natural beauty including the hills and views of the Bay, and significant residential communities; address hazards relating to fire, earthquake, geology and other natural conditions unique to the Town; and to provide reasonably regulated and orderly development of single family residential construction and subdivision projects.

WHEREAS, SB 9 specifically authorizes cities to impose objective zoning, subdivision, and design standards consistent with state law, and to adopt an ordinance to implement its provisions.

SB 9 further provides that such ordinances are not considered a “project” under the California Environmental Quality Act (CEQA). The proposed SB 9 permanent ordinance would amend the Town’s Zoning Code (Title 10) and Subdivision Ordinance (Title 9) under the Los Altos Hills Municipal Code to achieve the Town’s goals and policies and comply with state law.

WHEREAS, on August 17, 2023, the City Council held a duly noticed public hearing to consider the proposed SB 9 permanent ordinance as recommended by the Planning Commission, at which time all interested parties were provided an opportunity to give input and participate in the public process.

WHEREAS, after the close of the public hearing, the City Council considered all public comments received both before and during the public hearing, the presentation by Town staff, the staff report,

comments from the Planning Commission accompanying its recommendation, and all other pertinent documents regarding the proposed permanent SB 9 ordinance.

WHEREAS, the City Council finds that the proposed amendments to the Zoning Code and Subdivision Ordinance under the SB 9 permanent ordinance are consistent with and support the Los Altos Hills General Plan by helping to ensure the implementation of housing goals, programs and strategies in the 2023-2031 Housing Element, and utilize a carefully balanced approach and create objective zoning, design, and subdivision standards to preserve the Town’s unique characteristics while remaining in compliance with SB 9 and state housing laws.

WHEREAS, the City Council finds that the proposed ordinance is intended to comply with state housing laws and to establish comprehensive requirements and standards for the development and subdivision of qualified SB 9 properties in a way that protects and promotes public safety, community welfare, and the Town’s character and aesthetic quality in a manner consistent with SB 9 and applicable laws.

WHEREAS, the City Council desires to adopt the proposed ordinance to amend the Zoning Code and the Subdivision Ordinance to implement the requirements contained therein.

NOW, THEREFORE, the City Council of the Town of Los Altos Hills does hereby ordain as follows:

SECTION I. FINDINGS.

Based on the entirety of the record as described above, the City Council for the Town of Los Altos Hills hereby makes the following findings:

1. All of the facts and recitals above are true, correct, incorporated herein and made a part hereof.

2. This Ordinance is exempt from CEQA pursuant to Government Code sections 65852.21(j) and 66411.7(n).

3. This Ordinance was prepared and adopted in accordance with the requirements of Planning and Zoning Law (Government Code, sections 65853-65860) and meets all of the requirements thereunder.

4. This Ordinance is consistent with and supports the Los Altos Hills General Plan by implementing housing goals, programs and strategies in the 2023-2031 Housing Element, complying with SB 9 and state housing laws, and utilizing a carefully balanced approach to create objective zoning, design, and subdivision standards to preserve the Town’s unique characteristics. In addition, this Ordinance establishes comprehensive requirements and standards for SB 9 development and subdivision projects in a way that protects and promotes public safety, community welfare, and the Town’s character and aesthetic quality in a manner consistent with SB 9 and applicable laws.

SECTION II. AMENDMENT.

Chapter 1, Title 9, and Articles 5 and 15 of Chapter 1, Title 10, of the Los Altos Hills Municipal Code, are hereby amended to read as set forth in Exhibit A to this Ordinance, which is

hereby incorporated as though set forth in full herein.

SECTION III. SEVERABILITY.

If any provision of this ordinance or the application thereof to any person or circumstance is held invalid or unconstitutional the remainder of this ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions of this ordinance are severable. The City Council of the Town of Los Altos Hills hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable.

SECTION IV. EFFECTIVE DATE AND PUBLICATION.

Pursuant to the provisions of Government Code Section 36933, a summary of this Ordinance shall be prepared by the City Attorney. At least five (5) days prior to the Council meeting at which this Ordinance is scheduled to be adopted, the City Clerk shall (1) publish the Summary, and (2) post in the City Clerk’s Office a certified copy of this Ordinance. Within fifteen (15) days after the adoption of this Ordinance, the City Clerk shall (1) publish the summary, and (2) post in the City Clerk’s Office a certified copy of the full text of this Ordinance along with the names of those City Council members voting for and against this Ordinance or otherwise voting. This Ordinance shall become effective thirty (30) days from and after its adoption. Upon this Ordinance becoming effective, Ordinance No. 599 as adopted on December 16, 2021 pursuant to Government Code section 65858 shall be repealed and be of no further force and effect.

INTRODUCED: August 17, 2023
PASSED:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

BY: _________________________
Mayor
ATTEST:
_________________________

City Clerk
APPROVED AS TO FORM:
_________________________
City Attorney

EXHIBIT A
SECTION I. Revisions to Article 5, “Area, Coverage, Height and Setback Limitations” of Chapter 1 of Title 10
Sections 10-1.502 and 10-1.503 are amended as shown as follows, with additions in double underline and deletions in strikethrough. Sections, subsections, paragraphs and texts not modified by this amendment are not included below and shall remain in full force and effect.

Article 5. Area, Coverage, Height and Setback Limitations” . . .
10-1.502 Development area.

Except as provided in subsections (c) and (d) of this section, the amount of development area in square feet allowable on a parcel or lot shall not exceed the amounts determined by application of the formula in subsection (a) of this section where An is net area in acres, S is the average slope of the parcel or lot in percent, as defined in Section 10-1.202, LUF is the lot unit factor as defined by Section 10-1.202 and MDA is the maximum development area allowable. . . .
(6) Development Area Bonus. A development area bonus (five hundred (500) square foot maximum) of one square foot for every one square foot of roof-mounted photovoltaic (PV) power generation facility (solar panels) shall be granted subject to the following requirements:
. . .
(vii) Any development area bonus request may be referred to the Planning Commission by the Planning Director Community Development Director. A development area bonus request for a property of less than one net acre in size shall be subject to Planning Commission review and decision,
(viii) Sunset Provision. This section shall expire on July 31, 2016. (ix) The Planning Director Community Development Director shall provide the City Council with an annual report that evaluates the effectiveness of this subsection as an incentive for increasing PV system installations;
. . .
(c) Minimum MDA. The allowable development area on any parcel or lot shall not be reduced to less than seven thousand five hundred (7,500) square feet by application of the provisions of this section, except as set forth in Section 10-1.502(e) or except in the case of parcels or lots which have a lot unit factor of 0.50 or less. Parcels or lots which have a lot unit factor of 0.50 or less require a Conditional Development Permit and development area may be restricted below seven thousand five hundred (7,500) square feet as a condition of the permit. Maximum development area for lots which require a Conditional Development Permit shall be established as the maximum floor area allowed by Section 10-1.503(c), plus two thousand one hundred (2,100) square feet. The Site

Development Authority may approve development area of up to a total of four thousand five hundred (4,500) square feet for any lot or parcel without requiring a variance, so long as the findings for a Conditional Development Permit are made. Notwithstanding the foregoing, this subsection (c) shall not apply to any parcel that has a LUF less than 1.0 and was created after the enabling date of the ordinance implementing this sentence.
. . .
10-1.503 Floor area.
. . .
(c) Minimum MFA. The allowable floor area on any parcel or lot shall not be reduced to less than five thousand (5,000) square feet by application of the provisions of this section, except as set forth in subsection (e) of this section or except in the case of parcels or lots which have a lot unit factor of 0.50 or less. Parcels or lots which have a lot unit factor of 0.50 or less require a Conditional Development Permit and floor area may be restricted below five thousand (5,000) square feet as a condition of the permit. Maximum floor area for lots which require a Conditional Development Permit shall be established as the ratio of the lot unit factor (LUF) for the lot divided by 0.50 times five thousand (5,000) square feet. The Site Development Authority may approve floor area of up to two thousand five hundred (2,500) square feet for any lot without requiring a variance, so long as the findings for a Conditional Development Permit are made. Notwithstanding the foregoing, this subsection (c) shall not apply to any parcel that has a LUF less than 1.0 and was created after the enabling date of the ordinance implementing this sentence. . . .

SECTION II. Revisions to Article 15, “Objective Standards for Qualified Senate Bill 9 Subdivisions and Development Projects” of Chapter 1 of Title 10 Article 15 of Chapter 1 of Title 10 is repealed in its entirety and a new Article 15 is added as follows.

Other articles, sections, subsections, paragraphs and texts not modified by this amendment are not included below and shall remain in full force and effect.

Article 15.

Objective Standards for Qualified Senate Bill 9 Lot Splits and Development Projects 10-1.1501 Purpose and Intent.
10-1.1502 Definitions.
10-1.1503 SB 9 Lot Split Eligibility.
10-1.1504 Objective Development Standards for SB 9 Lot Splits. 10-1.1505 Objective Development Standards for SB 9 Units. 10-1.1506 Objective building and design requirements for SB 9 Units. 10-1.1507 Adoption of Fees and Charges.

10-1.1501 Purpose and Intent.

The purpose of this article is to establish objective standards and regulations to govern the development of qualified Senate Bill No. 9 (2021) (“SB 9”) subdivisions and development projects on single-family residential zoned properties within the Town of Los Altos Hills. The establishment of these regulations will result in the orderly subdivision and development of qualified SB 9 projects while ensuring that the new units are consistent with the semi-rural character of the Town and do not create any significant impacts with regards to public infrastructure or public safety. The regulations are established to implement the requirements under California Government Code Sections 65852.21 and 66411.7.
10-1.1502 Definitions.

For purposes of this article, the following definitions apply:
(a) Adjacent parcel means any parcel of land that (1) adjoins another parcel by any portion of a shared property line; (2) is separated from another parcel at any point only by a public rightof-way, ingress-egress easement, or public or private easement; or (3) is separated from another parcel only by other real property which in common ownership or control of the same owner or development project applicant.
(b) Accessory dwelling unit or ADU, means an attached or a detached residential dwelling unit as defined by Section 10-1.1402 of this code.
(c) Dwelling unit or Dwelling means an ADU, JADU, a primary dwelling, and an SB 9 Unit, as applicable.
(d) Junior accessory dwelling unit or JADU, or “efficiency unit”, means a dwelling unit as defined by Section 10-1.1402 of this code.
(e) Conservation Easement means restrictive covenants that run with the land and bind upon successive owners that protects against future development such as preservation of open space, scenic, riparian, historical, agricultural, forested, or similar conditions. Open space and riparian easements are included in this definition.
(f) Existing dwelling means a primary dwelling or other dwelling unit on a parcel that exists prior to any voluntary demolition or reconstruction or remodel where no more than 50% of the exterior wall framing has been removed or altered. Any existing dwelling unit where more than 50% of the exterior wall framing has been removed is considered a new dwelling for purposes of this article.
(g) Panhandle means the portion of a lot which connects the buildable section of the lot to a public or private vehicular right-of-way.
(h) Pathway means designated pedestrian, equestrian, and/or bicycle routes as shown on the Pathway Master Plan of the Town.
(i) Primary dwelling means a building as defined in Section 10-1.202 and is reviewed and entitled as a single-family residence pursuant to the provisions of Article 3, Chapter 2 of Title 10 of this code.

(j) Private Road means a road, way, or street in private ownership and under private maintenance, not offered for dedication as a public road, way, place, or street, which affords the principal means of access to three or more lots or parcels which do not have frontage on a public street.
(k) SB 9 Lot Split means a subdivision of an existing parcel to create up to two (2) new parcels using the provision in this article, Article 16 of Chapter 1 of Title 9 of this code, and the provisions identified in California Government Code Sections 65852.21 and 66411.7. (l) SB 9 Lot means single-family residential lots created from an SB 9 Lot Split. (m) SB 9 Dwelling Unit or SB 9 Unit means a dwelling unit that seeks to use or is developed using the provisions in this article and the provisions identified in California Government Code Sections 65852.21 and 66411.7.
10-1.1503 SB 9 Lot Split Eligibility.

Any parcel within the Residential-Agricultural (R-A) zoning district meeting the requirement of this article and Article 16 of Chapter 1, Title 9 of this code is eligible for SB 9 Lot Split, except under the following circumstances:
(a) Any parcel that was established through a prior exercise of SB 9 Lot Split as provided for in this article.
(b) Any parcel proposing to be subdivided that is adjacent to another parcel where either the owner of the parcel proposing to be subdivided or any person acting in concert with said owner has previously subdivided that adjacent parcel using the provisions in this article. For the purposes of this article, “any person acting in concert” with the owners includes, but is not limited to, an individual or entity operating on behalf of, acting jointly with, or in partnership or another form of cooperative relationship with, the property owner. (c) Any parcel located within an historic district or included on the State Historic Resources Inventory, as defined in Section 5020.1 of the Public Resources Code, or a parcel within a site that is designated or listed as a Town of Los Altos Hills or Santa Clara County landmark or historic property or district pursuant to a Town of Los Altos Hills or Santa Clara County ordinance.
(d) Any parcel where SB 9 Lot Split would require the demolition or alteration of any of the following types of housing:
(1) Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. (2) Housing that is subject to any form of rent or price control through a public entity's valid exercise of its police power.
(3) A parcel or parcels on which an owner of residential real property has exercised the owner's rights under Government Code section 7060 et seq. to withdraw accommodations from rent or lease within 15 years before the date that the development proponent submits an application.

(4) Housing that has been occupied by a tenant in the last three years. (e) Any parcel fully encumbered with a conservation easement or identified for conservation in an adopted natural community conservation plan pursuant to the Natural Community Conservation Planning Act (Chapter 10 (commencing with Section 2800) of Division 3 of the Fish and Game Code), habitat conservation plan pursuant to the federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.), or other adopted natural resource protection plan. (f) Any parcel that is designated prime farmland or farmland of statewide importance, as defined pursuant to United States Department of Agriculture land inventory and monitoring criteria, as modified for California, and designated on the maps prepared by the Farmland Mapping and Monitoring Program of the Department of Conservation, or land zoned or designated for agricultural protection or preservation by a local ballot measure. (g) Any parcel containing wetlands, as defined in the United States Fish and Wildlife Service Manual, Part 660 FW 2 (June 21, 1993), that would prevent the development of the parcel. (h) Any parcel within a very high fire hazard severity zone, as determined by the Department of Forestry and Fire Protection pursuant to Government Code Section 51178, or within a high or very high fire hazard severity zone as indicated on maps adopted by the Department of Forestry and Fire Protection pursuant to Section 4202 of the Public Resources Code. This subsection does not apply to parcels that have been excluded from specific hazard zones by actions of the Town pursuant to Government Code section 51179(b), or parcels that have adopted fire hazard mitigation measures pursuant to existing building standards or state fire mitigation measures applicable to the development.
(i) Any parcel with a hazardous waste site that is listed pursuant to Government Code Section 65962.5 or a hazardous waste site designated by the Department of Toxic Substances Control pursuant to Section 25356 of the Health and Safety Code, unless the State Department of Public Health, State Water Resources Control Board, or Department of Toxic Substances Control has cleared the site for residential use or residential mixed uses. (j) Any parcel within a special flood hazard area subject to inundation by the 1 percent annual chance flood (100-year flood) as determined by the Federal Emergency Management Agency (FEMA) in any official maps published by the FEMA. However, a SB 9 Lot Split and/or development project may be located on a parcel described in this subsection if (i) the parcel is otherwise eligible for approval under the provisions of this article and (ii) the project applicant is able to satisfy all applicable federal qualifying criteria demonstrating either of the following are met:
(1) The site has been subject to a Letter of Map Revision prepared by the FEMA and issued to the Town.
(2) The site meets FEMA requirements necessary to meet minimum flood plain management criteria of the National Flood Insurance Program pursuant to Part 59 (commencing with Section 59.1) and Part 60 (commencing with Section 60.1) of Subchapter B of Chapter I of Title 44 of the Code of Federal Regulations.

(k) Any parcel within a regulatory floodway as determined by the FEMA in any official maps published by the FEMA, unless the SB 9 Lot Split and/or development project has received a no-rise certification in accordance with Section 60.3(d)(3) of Title 44 of the Code of Federal Regulations.
(l) Any parcel containing habitat for protected species identified as candidate, sensitive, or species of special status by state or federal agencies, fully protected species, or species protected by the federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.), the California Endangered Species Act (Chapter 1.5 (commencing with Section 2050) of Division 3 of the Fish and Game Code), or the Native Plant Protection Act (Chapter 10 (commencing with Section 1900) of Division 2 of the Fish and Game Code). 10-1.1504 Objective Development Standards for SB 9 Lot Splits.

The following objective standards and regulations apply to all SB 9 Lot Splits:
(a) The subdivision shall create no more than two new parcels of approximately equal area provided that one parcel shall not be smaller than 40 percent of the lot area of the original parcel proposed for subdivision. In no instance shall any resulting parcel be smaller than 1,200 square feet in area.
(b) Where noted, the requirements of this Section 10-1.1504 shall be waived by the Community Development Director if the applicable regulation at issue would physically preclude the construction of two SB 9 Units on either resulting parcel or would result in an SB 9 Unit from being less than nine hundred (900) square feet in floor area. All such waivers made by the Community Development Director shall be final.
(c) No more than two (2) dwellings shall be permitted on a new parcel created through an SB 9 Lot Split. For the purposes of this subsection, “dwelling unit” means a primary dwelling, an SB 9 Unit, an Accessory Dwelling Unit or Junior Accessory Dwelling Unit. (d) Existing parcels shall be split approximately perpendicular to the longest contiguous property line. Resulting lots shall have a maximum depth to width ratio of three-to-one (3:1).

However, this requirement shall be waived if the subdivider demonstrates that it would prohibit an SB 9 Lot Split that otherwise meets the requirements of this article. (e) The front parcel line of any newly created parcel shall be the parcel line that is closest to or parallel to the public or private road that serves the parcel. (f) A twenty (20)-foot-wide panhandle (for a flag lot) or an ingress/egress easement shall be provided for all new parcels that do not have direct frontage on a public or private road.

Driveway access to the new parcels shall be shared as identified in Figure 1, 2, and 3, unless the new driveways are a minimum of one hundred (100) feet apart. No more than one (1) driveway cut is permitted for each parcel.

Figure 1 Figure 2 Figure 3
(g) Easements for access and public and private utilities shall be provided for any newly created parcel that does not front on a public or private street. (h) Separate utility meters shall be provided for each parcel prior to recordation. (i) All newly created parcels shall be connected to public sewer or provide a private onsite wastewater treatment system (OWTS) that is fully contained within the new parcel boundaries to be approved by the Santa Clara County Environmental Health Department. (j) No setbacks shall be required for an existing structure on the parcel from a proposed parcel line. For the purposes of this article, existing dwelling units or accessory structures may be demolished and reconstructed as new units pursuant to the ministerial approval process of this article to the same or lesser massing and dimensions of the previously existing dwelling or accessory structure at the same location and within the same building footprint. Roof decks and balconies are permitted if reconstructed in the same location and orientation. However, in no event shall any reconstruction increase the height, floor area, development area, or setbacks of the prior existing dwelling or structure.
(k) In the event that an applicant desires to demolish and reconstruct an existing dwelling unit or accessory structure, the applicant shall apply for a demolition permit with the Town concurrently or after submitting an application pursuant to this article, and shall submit with the demolition permit application a pre-demolition survey prepared by a licensed surveyor or civil engineer and as-built plans and elevations of the existing dwelling or structure prepared by a licensed architect. All other accessory structures that are not primary or secondary dwellings shall be reviewed by the applicable hearing body pursuant to pursuant to the provisions of Article 3, Chapter 2 of Title 10 of this code.
(l) An SB 9 Lot Split is subject to all impact or development fees related to the creation of a new parcel pursuant to Title 9 of this code and any applicable fee schedules adopted by the City Council and most currently in effect.
10-1.1505 Objective Development Standards for SB 9 Units.

The following objective standards and regulations apply to the development of SB 9 Units:
(a) Number of Units Permitted.
(1) For parcels not created through an SB 9 Lot Split, the following unit types and count shall be permitted on one parcel:

A. a primary dwelling and an SB 9 unit (or two SB 9 units); B. ADU as provided by Article 14 of Title 10 of this code; and

C. a JADU as provided by Article 14 of Title 10 of this code. (2) For SB 9 Lots, the following unit types and count shall be permitted:

A. Up to two dwelling units, consisting of existing or proposed (including reconstruction pursuant to Section 10-1.1504(j) of this code) primary dwellings or SB 9 Units; or
B. Up to two SB 9 Units.

C. No ADUs and JADUs are permitted.
(b) Unit Size and Construction. The maximum size and development area for one SB 9 Unit shall be nine hundred (900) square feet with a maximum height of sixteen (16) feet. The maximum development area (MDA) permitted on an SB 9 Lot shall be the maximum floor area (MFA) plus an additional two thousand one hundred (2,100) square feet.

For any vacant SB 9 Lot with an MFA of less than one thousand eight hundred (1,800) square feet, the parcel shall be allowed to construct up to two (2) SB Units with a maximum size of nine hundred (900) square feet and a height of sixteen (16) feet each. For an SB 9 Lot with one existing residence exceeding the MFA of the parcel, nine hundred (900) square feet of floor area and development area shall be excluded from the MFA and MDA. For parcels not created through an SB 9 Lot Split, nine hundred (900) square feet of floor area and development area for the construction of SB 9 Units shall be excluded from the maximum floor area and development area. No basement, bunker, or roof deck shall be permitted in any of the foregoing developments.
(c) Setbacks. The minimum front yard setback for any new SB 9 dwelling unit shall be 40 feet measured from any point of the architecture extrusions, including roof eaves and permanent wall features to the front parcel line or a public or private road right-of-way and four (4) feet from the side and rear parcel lines. In addition, all outdoor patios, covered patios, decks, and other hardscape, except walkways as defined in Section 10-1.202, shall meet the standard 40- foot front and 30-foot side and rear setbacks as set forth under Section 10-1.505.

Notwithstanding the foregoing, no setback shall be required for a dwelling unit proposed pursuant to this article that is constructed in the same location and to the same dimensions as an existing structure on the parcel in accordance with Section 10-1.1504(j). (d) Structures shall not be located in the following locations:
(1) In areas encumbered by a recorded easement, including but not limited to, public utility easements, conservation easements, access easements, equestrian easements, general public easements, pathway easements, and open space easements; (2) In areas within twenty-five (25) feet of the top of a creek bank; (3) Within 10 feet of a parcel line where a pathway is designated on the adopted Master Path Plan for the Town of Los Altos Hills.
(4) Areas with slopes greater than thirty percent (30%). (e) Required Parking. One on-site parking space is required per SB 9 Unit as follows:

(1) The parking space may be covered or uncovered and shall be at least ten (10) feet wide by twenty (20) feet deep.
(2) The space may be provided as tandem parking on a driveway or located in a setback area, unless specific findings are made by the Community Development Director that parking in a setback area or as tandem is not feasible based upon specific site or regional topographical or fire and life safety conditions.
(3) The parking space shall not encroach into a required fire truck turnaround or obstruct the driveway access to the primary dwelling.
(4) However, no parking shall be required in either of the following circumstances:

A. The parcel is located within one-half mile walking distance of either a high-quality transit corridor, as defined in subdivision (b) of Section 21155 of the Public Resources Code, or a major transit stop, as defined in Section 21064.3 of the Public Resources Code.

B. There is a car share vehicle located within one block of the parcel. (f) Heritage Oak Tree Removal. If an SB 9 Unit development project proposes to remove, or damages in the course of construction, a heritage oak tree, the applicant shall be required to provide replacement trees in accordance with the following:

For a heritage oak tree between 12-18 inches in trunk diameter: replacement of two (2) 24-inch box California native oak trees.

For a heritage oak tree between 18-24 inches in trunk diameter: replacement of three (3) 24-inch box California native oak trees.

For a heritage oak tree greater than 24 inches in trunk diameter: replacement of four (4) 24-inch box California native oak trees.
(g) Development Incentives for SB 9 Units on Parcels Meeting Certain Requirements. If an SB 9 Unit is proposed to be constructed to meet the 40-foot front and 30-foot side and rear setbacks as set forth under Section 10-1.505, and if the applicant or property owner proposes to dedicate to the Town all of the following as applicable: (i) for any parcel, a public right-of-way interest pursuant to Section 9-1.703; (ii) for a parcel with a slope equal to or exceeds thirty (h) percent (30%), an open space easement covering the entire sloped area (iii) for a parcel containing a creek identified in the General Plan, an open space easement providing at least a twenty-five (25) feet buffer zone from the top of the creek bank; or (iv) for a parcel with a proposed pathway identified on the Town’s Pathway Master Plan, a pathway easement of at least ten (10) feet in width covering the identified pathway segment, then any SB 9 Unit constructed on the parcel shall receive development incentives as described below and subject to the following:
(1) The maximum floor area (MFA) and maximum development area (MDA) permitted on the parcel shall be calculated in accordance with the requirements of the underlying zoning district per Sections 10-1.502 and 10-1.503. For parcels with a Lot Unit Factor (LUF) as defined under Section 10-1.202 less than or equal to 0.5, up to two thousand

(2,000) square feet of the lot’s MFA shall be available for the development of one SB 9 Unit. For parcels with a LUF greater than 0.5, up to three thousand (3,000) square feet of the lot’s MFA shall be available for the development of one SB 9 Unit. Subject to unit count requirements under subsection (a) of 10-1.1505, the maximum floor area of any SB 9 Unit shall be three thousand (3,000) square feet.
(2) The maximum height of an SB 9 Unit shall be sixteen (16) feet. (3) A basement shall be permitted for SB 9 Units subject to the requirements of Section 10-1.202 and the setback requirements under Section 10-1.505, which shall also apply to any light wells and roof eaves. Additionally, if any portion of the basement is visible above ground level, then the entire square footage of said basement shall be included in the calculation of maximum floor area for the lot pursuant to Section 10-1.503. (4) Required Parking for an SB 9 Unit shall be as follows, based on the proposed floor area of said unit. All spaces shall be at least ten (10) feet wide by twenty (20) feet deep.

No more than seven (7) parking spaces shall be required on one lot.

Floor Area Number Forms Setbacks
Under 1000 square
feet
1 uncovered Permitted in the Setback
areas
1,000 to 1,600 square
feet
2 uncovered One space may be located in
the Setback areas, all other
spaces shall be outside the
40-foot front and 30-foot
rear and side setbacks
1,600 to 2,400 square
feet
3 uncovered
2,400 to 3,000 square
feet
4 2 covered
2 uncovered
(5) Any SB 9 Unit receiving a development incentive pursuant to this subsection (g) shall comply with the 40-foot front and 30-foot side and rear setbacks as set forth under Section 10-1.505.
(6) For any SB 9 Unit receiving a development incentive pursuant to this subsection (g), trees and shrubs shall be provided as landscape screening within the 40-foot front and 30- foot rear and side setback areas as follows: maximum spacing for existing and proposed screening trees shall be 25 feet on center and 10 feet on center for existing and proposed screening shrubs. All new screening trees shall be California-native evergreen trees of at least 24-inch box size, and all screening shrubs shall be California-native evergreen shrubs of at least 15-gallon box size. However, the foregoing landscape screening shall not be required or located in a recorded easement area, except for open space easements, including but not limited to a driveway or ingress-egress easement, public utility easements; areas for septic systems; and within 25-foot from the top of bank of creeks. (i) Driveways and Access. All dwelling units on a parcel shall be served by a common driveway from the nearest public or private street. Driveway access to all new units shall be compliant with the Santa Clara County Fire Department standard details and specifications for driveways and turnarounds.

(j) Sewer Connection. All newly created dwelling units shall be connected to public sewer or provide an onsite wastewater treatment system (OWTS) approved by the Santa Clara County Department of Environmental Health.
(k) Occupancy Requirements. An SB 9 Unit may be rented separately from the primary dwelling unit. However, no SB 9 Unit shall be rented for a period of less than thirty-one (31) days and cannot be occupied as a short-term rental unit, as defined under section 10-1.1202. (l) Development projects pursuant to this article shall be subject to all impact or development fees related to the development of a new dwelling unit. (m)Notwithstanding the foregoing, no housing development project shall be permitted on a site pursuant to this article if the underlying parcel falls within any provision under Section 10-

1.1503 (c) through (l).
(n) Where noted, the requirements of this section 10-1.1505 except for the requirement under subsection (d)(1) above shall be waived by the Community Development Director if the applicable regulation at issue would physically preclude the construction of two SB 9 Units on the parcel or would result in an SB 9 Unit from being less than nine hundred (900) square feet in floor area. All such waivers made by the Community Development Director shall be final. 10-1.1506 Objective building and design requirements for SB 9 Units.

All SB 9 Units shall be reviewed and approved without discretionary review or public hearing. As part of the Planning Department’s ministerial approval, the following requirements shall be confirmed for SB 9 Unit developments and construction:
(a) All SB 9 Units shall comply with applicable requirements of the California Building Standards Code including but not limited to the Residential Code and the Fire Code. (b) Proposed grading for SB 9 Unit development and associated site improvements shall not exceed the vertical cuts and fills thresholds listed as below:

Cut Fill
House and Garage 8’ 3’
Driveway 10’ 5’
Fire Truck Turnaround 7’ 5’
Patio and Yards 4’ 3’
(c) No site grading shall be permitted within ten (10) feet of any property line and public or private road right-of-way easements, except such grading is permitted for the construction of pathways; to allow access for driveways where they cross a property line; within a panhandle; or for the construction of an SB 9 Unit within five (5) feet of the building footprint within the parcel.
(d) The height of lowest finished floor(s) of a structure shall not be set in excess of four feet six inches (4’-6”) above the existing grade, to assure that structures step with the slope. Supported decks shall not exceed three (3) feet above adjoining grade except where located within six (6) feet of an exterior wall of a building.

(e) For detached units proposed or expanded to be greater than nine hundred (900) square feet in floor area, the exterior materials and design shall match the design of any existing primary dwelling unit on the parcel through the use of the same exterior wall materials, identified color tones, window types, door and window trims, roofing materials and roof pitch. (f) For an attached unit, the exterior materials, windows and other architectural features shall match the existing structure by employing the same building form, color tones, window design, door and window trims, roofing materials and roof pitch. (g) Detached units shall maintain no less than ten (10)-foot separation, inclusive of eaves, measured from the exterior walls.
(h) All operable doors, outdoor steps, landings, railings, HVAC equipment attached to a dwelling, propane tanks, generators, water collection tanks, hardscape, storage for trash receptacles, above-ground backflow preventer valves and temporary construction equipment shall be located at least ten (10) feet away from any property line. Operable doors shall not be located within ten (10) feet of the property line.
(i) No exterior entrance shall face the rear or side property lines if the distance is less than thirty (30) feet between the entrance and the property line that the entrance faces. (j) Windows shall not occupy more than 33% of any façade of an SB 9 Unit. Prior to issuance of certificate of occupancy, windows shall install “privacy glass” if the distance between the windows and the property line is less than ten (10) feet. However, privacy glass shall not be required if a window is situated six (6) feet or higher measured from the finish floor to the bottom of windowsills.
(k) Exterior wall colors and materials shall have a light reflectivity value (LRV) of 50 or less and roof materials shall have a light reflectivity value (LRV) of 40 or less. All metal roofs shall conform to a color specified in Exhibit A of the Metal Roofing Policy approved by the Planning Commission and most currently in effect.
(l) Exterior building lighting shall be fully shielded and downward facing and limited to one exterior light fixture per exterior doorway, or the minimum necessary to comply with the California Building Standards Code.
(m)The following lighting features are permitted, and light emission and color temperatures of any light bulbs used hall be limited as follows:

Maximum Light Emission
(Lumens, Φv)
Maximum Color
Temperature (Kelvin, K)
Path Lights 200 2700
Step Lights 110 2700
Exterior Wall Scones 600 3000
Recessed Ceiling Lights 600 3000
Pendant Lights 600 3000
Gate Lights 600 3000
Temporary Construction
Lighting
500 3000

(n) Recessed lights and downlights shall not be installed in second floor roof eaves. Such lights in first floor eaves shall be located over entryways, garage doors, and patio doorways only.

Recessed lights and downlights in first floor roof eaves shall be positioned so that the light cone does not shine down into a neighboring property. No lighting shall be placed at or near the peak of the roof line of a one- or two-story gabled roof.
(o) Pathway and driveway lighting shall be fully shielded fixtures, directed downward and no taller than 18 inches. The spacing between pathway lights shall be 20 feet on center. (p) Garage door windows, panels, or other opening shall not emit light more than 30% of the door’s surface area. The emitting light shall be translucent, allowing no more than 30% of the interior light emission to pass through to the outside. (q) Notwithstanding subsection (l) above, the following outdoor lighting types are prohibited:
(1) Any light beams that emits or stretches beyond the aerial space defined by the property lines.
(2) Up-lighting of any kind.
(3) Wall wash lighting of exterior walls.
(4) Visible LED lighting strips, tape lights, and bistro lights. (5) Bistro lights, pendant lights, and any similar lighting fixtures hung down from or hung amongst trees.
(6) Tree lights.
(r) Only two landscape lights shall be permitted to locate within the 30- and 40-foot setback areas set forth under Section 10-1.505.
(s) All SB 9 Units are required to have fire sprinklers. A solid (no openings) one-hour fire wall shall be required between an SB 9 Unit, the primary dwelling, an ADU, or any two units configured as a duplex on a parcel. No internal accesses are permitted between the SB 9 Units and other dwelling units. In addition, a deed restriction in a form approved by the City Attorney’s Office shall be recorded stipulating that the duplex shall be maintained as two (2) separate units.
(t) For the purposes of identifying a heritage oak as defined in Section 12-2101 of this code, an arborist report prepared by an International Society of Arboriculture (ISA) certified arborist shall be submitted by the applicant if construction is proposed within the driplines of any trees with trunk diameters of twelve (12) inches or greater to be preserved. (u) No roof decks are permitted on SB 9 dwelling units. A hedge, consisting of 15-gallon minimum evergreen shrubs and at a minimum four (4) feet in height, shall be planted and maintained inside the parcel line (and outside of any recorded easement area) at six (6)-foot intervals adjacent to the wall of the SB 9 dwelling unit located closer than ten (10) feet from the side and rear property lines.
(v) A Water Efficient Landscape Ordinance (WELO) Worksheet of the Town shall be submitted by the applicant for any proposed landscape associated with SB 9 Units. The

applicant shall furnish to the Town a Landscape Maintenance and Water Usage Deposit in the amount based on the Town’s adopted fee schedule most currently in effect. For two years after completion of the project, Town staff shall review water usage for the parcel and conduct a site inspection to ensure any installed landscape features and screening remains in existence and continues to be adequately maintained. The deposit shall be applied towards remedying insufficient or removed landscape screening or water usage greater than the annual usage indicated on the approved parcel water budget worksheet. (w)All electrical and utility services to a new dwelling unit shall be undergrounded. (x) All basements within a dwelling unit shall include at least one emergency escape/rescue opening as required by the applicable provision of the California Building Code. In addition, each bedroom located in the basement within a dwelling unit shall require a light well with dimensions of three (3) feet by nine (9) feet, extending maximum three (3) feet from the exterior wall, and meeting the requirements for ingress and egress under the California Building Code (CBC) or California Residential Code (CRA).
(y) Notwithstanding the foregoing subsections, any development or design standards, except for requirements of any provisions of the California Building Standards Code including but not limited to the Residential Code and the Fire Code, that would physically preclude the construction of up to two SB 9 Units on the parcel or that would physically precludes an SB 9 dwelling unit from being nine hundred (900) square feet in floor area shall be waived by the Community Development Director. All such waivers made by the Community Development Director shall be final.
10-1.1507 Adoption of Fees and Charges.

The City Council may establish and set by resolution all fees and charges, consistent with Government Code sections 65852.2 and 65852.22, and related provisions, as may be necessary to effectuate the purpose of this article.

SECTION III. Revisions to Chapter 1 “Subdivisions” of Title 9 A new Article 16, entitled “SB 9 Lot Splits”, is hereby added to Chapter 1 of Title 9 and shown in its entirety as follows. Other articles, sections, subsections, paragraphs and texts not modified by this amendment are not included below and shall remain in full force and effect.

Article 16
Senate Bill 9 Lot Split
9-1.1061 Application Materials for SB 9 Lot Splits.
9-1.1062 Review and Approval of SB 9 Lot Splits.
9-1.1601 Application Materials for SB 9 Lot Splits. A subdivider seeking an SB 9 Lot Split as defined in Article 15 of Chapter 1, Title 10 of this code shall file a tentative parcel map and a parcel map, an SB 9 Lot Split Application established by the Town containing the information set

forth in this section to the Planning Department for review. Submittals shall be accompanied by the required fees and deposits as prescribed by resolution of the City Council. (a) Application and Billing Agreement signed by all parties holding an ownership interest in any properties which are the subject of the proposed subdivision. (b) Numbered Tract Map, Parcel Map, or Certificate of Compliance to demonstrate the lot legality, pursuant to Section 9-1.318.
(c) Preliminary title report within the past six (6) months. (d) Topographic survey. Minimum contour interval is five (5) feet when the average slope exceeds 10% and two (2) feet when the average slope is less than 10%. (e) Preliminary approval of the percolation test from the Santa Clara County Department of Environmental Health, if the parcels must connect to onsite wastewater treatment systems (OWTS).
(f) A tentative Parcel Map containing the following information:
(1) Date, north arrow, scale, sufficient description to define the location, boundaries of the proposed tract and contour intervals, all located in the lower right-hand corner of the map.
(2) Adjacent properties on all sides of the proposed SB 9 Lot Split, including those separated by a public or private right-of-way, with information of the last name of owner or owners, Assessor Parcel Numbers, topographic features, and all improvements. (3) The names, addresses, and telephone numbers of the recorded owners, subdivider, and State of California registered civil engineer or State-licensed land surveyor who prepared the preliminary map. The registered civil engineer or licensed land surveyor shall include his or her valid stamp, number, and signature;
(4) Locations, names, widths, centerline radii, and centerline grades of all streets, roads, and rights-of-way in the proposed subdivision with typical cross-sections showing proposed improvements. Centerline grades shall be shown by a profile, preferably referred to mean sea level datum as established by the United States Geological Survey, or to Town approved bench marks established by the City Engineer. Cross-sections shall be presented as required by the City Engineer;
(5) Gross and net acreage of each individual lot to the nearest one hundredth of an acre which may be based on the calculation of the gross and net acreage of the entire parcel; (6) A number for each lot, dimensions of the lots, including frontage, depth, width, and gross and net area of each lot to the nearest hundredth of an acre; and (7) The location of any existing and/or proposed easements, including easements for conservation purposes, Open Space Easements and Pathway Easements. (g) A form prepared and signed by the registered civil engineer, or licensed land surveyor who prepared the Parcel Map setting forth the average slope, Lot Unit Factor (LUF) and slope density calculations for the original lot and for each new parcel;

(h) Location, width, and character of all existing and proposed easements for drainage, water, sewage, public utilities, together with the location and approximate dimensions of any existing buildings and structures, driveways, pools, hardscape, retaining walls, septic tanks, leach fields, wells, active or abandoned, and proposed disposition;
(i) Approximate location and direction of flow of all creeks, streams, and other watercourses and drainages, showing type of existing top-of-banks and creek depths, with a separate sheet showing cross-sections of allsuch creeks, streams, and watercourses, when such streams, creeks or other watercourses are three (3) feet in depth and/or the width is four (4) feet or more at the bed of the stream, creek, or other watercourse;
(j) Location and building footprint of the existing structures identified by type. Structures to be removed shall be so marked.
(k) Location of all trees with trunks equal to or greater than twelve (12) inches in diameter.

Trees in concentrated areas shall be approximately marked on the map with a corresponding legend indicator. The trees proposed to be removed shall be identified on the tentative Parcel Map.
(l) Proposed or required Green Infrastructure;
(m)Conceptual grading design with the proposed contours at two (2)-foot intervals minimum if the existing ground slope is less than 10 percent, or at five (5)-foot intervals minimum if the existing ground slope is 10 percent or more.
(n) Conceptual drainage design show how runoff of surface waters from individual lots will be achieved and the ultimate disposal of all subdivision surface waters. (o) Approximate distance, size and location of the nearest existing sanitary sewer main line; Or the septic system locations on the proposed parcels, if the parcel proposes to connect to onsite wastewater treatment systems (OWTS).
(p) Source of domestic water supply.
(m)Fire protection system and design as required by the Los Altos Hills County Fire Protection District.
9-1.1602 Review and Approval of SB 9 Lot Splits.
(a) SB 9 Lot Splits shall be reviewed for conformance with the standards and requirements under Article 15 of Chapter 1, Title 10 of this code.
(b) Upon completion of review and preparation of conditions of approval authorized by this chapter by the Planning Department, the Community Development Director shall ministerially approve the tentative parcel map without discretionary review or public hearings if the tentative parcel map conforms to the applicable requirements of this chapter and applicable provisions of Article 15 under Chapter 1, Title 10 of this code. The Community Development Director’s decision shall be final.
(c) The expiration and extension of the tentative parcel map shall be in accordance with Section 9-1.519, unless a longer or shorter period is prescribed by applicable state law.

(d) All persons submitting maps as required by this article shall pay all fees and/or deposits as provided by the City Council's resolution establishing fees and charges. (e) A note on the parcel map and a recorded deed restriction in a form approved by the City Attorney’s Office shall be applied to all newly created parcels indicating that the parcel was split using the provision of this article and that no further SB 9 Lot Split are permitted. The deed restriction shall also identify that the parcel shall be used for residential uses only and that it is subject to the requirements of Section 10-1.1505(a)(2) and Sections 10-1.502 and 503 of Article 15 of Chapter 1 of Title 10 of this code.
(f) Prior to the recordation of the parcel map, the applicant shall sign and record an affidavit in a form approved by the City Attorney’s Office stating that the applicant intends to reside in one of the proposed or existing primary dwellings or SB 9 Units as defined in Article 15 of Chapter 1, Title 10 of this code for three years from the date of the approval of the subdivision. This requirement shall not apply if the applicant is a community land trust or a qualified nonprofit corporation as provided in Sections 402.1 and 214.15 of the Revenue and Taxation Code. 5432406.1

CITY COUNCIL ERRATA SHEET
AGENDA ITEM #6A, Attachment 1
August 14, 2023
The following changes, reflected in redline (with red double underline indicating addition and red strikethrough indicating deletion), have been made to Exhibit A to Attachment 1 of Agenda Item #6A, Draft SB 9 Ordinance. Item #6A is the consideration of an Ordinance to amend the Zoning and Subdivision Ordinances for the review and approval of Senate Bill 9 development and subdivision projects. Exhibit A lists the proposed regulations of the Ordinance and amendments. The changes makes clerical corrections to the draft document.

SECTION I. Revisions to Article 5, “Area, Coverage, Height and Setback Limitations” of Chapter 1 of Title 10
. . .
(6) Development Area Bonus. A development area bonus (five hundred (500) square foot maximum) of one square foot for every one square foot of roof-mounted photovoltaic (PV) power generation facility (solar panels) shall be granted subject to the following requirements:
. . .
(viii) Sunset Provision. This section shall expire on July 31, 2016. (This subsection (viii) is removed from Exhibit A, as it is not impacted by the proposed zoning amendments in the Ordinance. However, this deletion is not removing (viii) from the Municipal Code and it will be retained.)
SECTION II. Revisions to Article 15, “Objective Standards for Qualified Senate Bill 9 Subdivisions and Development Projects” of Chapter 1 of Title 10 . . .
(d) Structures shall not be located in the following locations:
(1) In areas encumbered by a recorded easement, including but not limited to, public utility easements, conservation easements, access easements, equestrian easements, general public easements, pathway easements, and open space easements;
(2) In areas within twenty-five (25) feet of the top of a creek bank; (3) Within 10 feet of a parcel line where a pathway is designated on the adopted Master Path Plan Pathway Master Plan for the Town of Los Altos Hills. (4) Areas with slopes greater than thirty percent (30%). . . .
(g) Development Incentives for SB 9 Units on Parcels Meeting Certain Requirements. If an SB 9 Unit is proposed to be constructed to meet the 40-foot front and 30-foot side and rear Attachment 1.A
Posted 8/15/23

setbacks as set forth under Section 10-1.505, and if the applicant or property owner proposes to dedicate to the Town all of the following as applicable: (i) for any parcel, a public right-of-way interest pursuant to Section 9-1.703; (ii) for a parcel with a slope equal to or exceeds thirty
(h) percent (30%), an open space easement covering the entire sloped area (iii) for a parcel containing a creek identified in the General Plan, an open space easement providing at least a twenty-five (25) feet buffer zone from the top of the creek bank; or (iv) for a parcel with a proposed pathway identified on the Town’s Pathway Master Plan, a pathway easement of at least ten (10) feet in width covering the identified pathway segment, then any SB 9 Unit constructed on the parcel shall receive development incentives as described below and subject to the following:
. . .

SECTION III. Revisions to Chapter 1 “Subdivisions” of Title 9 9-1.1601 Application Materials for SB 9 Lot Splits. A subdivider seeking an SB 9 Lot Split as defined in Article 15 of Chapter 1, Title 10 of this code shall file a tentative parcel map and a parcel map, an SB 9 Lot Split Application established by the Town containing the information set forth in this section to the Planning Department for review. Submittals shall be accompanied by the required fees and deposits as prescribed by resolution of the City Council. . . .
(h) Location, width, and character of all existing and proposed easements, including but not limited to easements for pathways, open space, conservation or agricultural purposes, equestrian uses, drainage, water, sewage, public utilities, together with the location and approximate dimensions of any existing buildings and structures, driveways, pools, hardscape, retaining walls, septic tanks, leach fields, wells, active or abandoned, and proposed disposition; . . .
5435733.1

TOWN OF LOS ALTOS HILLS July 27, 2023
Staff Report to the Planning Commission
SUBJECT: Study Session Regarding Senate Bill 9 (SB 9) Ordinance – Town of Los Altos Hills
Study Session to provide an overview and obtain feedback on a Zoning Ordinance Amendment of the Municipal Code to ministerially review and approve residential development and subdivision projects pursuant to California Senate Bill 9 (SB 9).

FROM: Elaine Ling, Interim Community Development Director RECOMMENDATION: That the Planning Commission take the following actions:

Receive the staff report, consider public comments, and provide feedback and direction on proposed provisions for a permanent SB 9 Ordinance as an amendment to the Town’s Zoning Code. This is a Study Session only, and no formal action would occur at this meeting.

BACKGROUND
Introduction and Procedural History
Pursuant to duly noticed public hearings, the Town adopted an interim urgency ordinance pursuant to Government Code section 65858 initially on December 16, 2021 and further extended it for an additional twenty two (22) months to establish certain regulations for Senate Bill (SB) 9 units in light of the need for the immediate preservation of the public health, safety and welfare. The urgency ordinance and the regulations therein are currently set to expire in October 2023, unless the Town adopts a permanent ordinance prior to that date.

The purpose of the ordinance, as documented through the urgency findings adopted by the City Council and noted above, is to address certain concerns which present an immediate threat to public health, safety, and welfare through interim regulations while the Town considers permanent regulations applicable to facilitate SB 9 units construction and subdivisions. The interim ordinance sets forth objective standards and establishes a streamlined process for ministerially approving SB 9 projects consistent with state law. In particular, the interim ordinance amended the Town’s Zoning Code to be consistent with the then-newly adopted Government Code Sections 65852.21 and 66411.7, and expanded the types, size, and number of residential units that may be permitted and constructed in single-family zones, thereby resulting in a larger number of residential units than under the then-current zoning regulations.

SB 9 units continue to remain an important part of the Town’s housing strategy to meet its regional housing obligations in conjunction with other programs and policies to facilitate housing supply growth. Adoption of a permanent ordinance would further the Town’s efforts and establish longterm regulations consistent with state law. For instance, the Town’s 2023-2031 Housing Element, adopted by the City Council and certified by the California Department of Housing and Community Development (HCD), incorporates the implementation of a permanent SB 9 Ordinance as a housing program (Program B-10). Among other things, this Program’s strategy proposes to remove affordability requirements established by the interim ordinance and allows SB 9 units to obtain additional floor areas based on the availability of maximum floor area (MFA) for Attachment 2

Planning Commission Page 2
Study Session – SB 9 Permanent Ordinance
July 27, 2023
the parcel and/or adherence to standard setbacks and easement dedication requirements as incentives to further promote development.

The Town has continued to work towards adopting a permanent SB 9 Ordinance during this interim period. On October 6, 2022, the Planning Commission formed an ad hoc committee consisting of two commissioners to initiate the ordinance effort and present draft concepts and language for the Planning Commission to consider. On December 12, 2022, and February 15, 2023, the Planning Commission held two (2) SB 9 Ordinance Study Sessions regarding the permanent local ordinance, focusing on a review of the State Legislation, other jurisdictions’ SB 9 ordinances, and the proposed development standards for the permanent ordinance. In addition, surveys were conducted during the meetings to collect initial feedback on providing incentives to SB 9 projects that meet the Town’s development standards.

On February 3, 2023, the Town launched a new SB 9 Information webpage, which can be found via the following link: https://los-altos-hills-ca.civilspace.io/en/projects/senate-bill-9-sb-9. The webpage includes an introduction to the State Legislation and the progress of the local ordinance update. In addition, a questionnaire for SB 9 development incentives has been open until July 18, 2023, and the survey results collected on the same day are included in Attachment 1.

July 25, 2023 PC Study Session
As the urgency ordinance expires in October 2023, the Town must adopt a permanent ordinance to be in effect before the expiration date in order to continue enforcing local regulations and avoid a lapse between the urgency ordinance expiration date and the permanent ordinance effective date.

Otherwise, any SB 9 applications submitted during the absence of local regulations are subject to the state law only. A series of public hearings are scheduled and publicly noticed as below for a timely adoption of the permanent ordinance.
• July 25, 2023, Planning Commission Study Session on the draft SB 9 Permanent Ordinance. • August 3, 2023, Planning Commission Regular Meeting to review and make recommendation on the Permanent Ordinance to the City Council.
• August 17, 2023, City Council Meeting for first reading and consideration of SB 9 Permanent Ordinance at a public hearing.
• If introduced for adoption, September 20, 2023 would be the City Council Regular Meeting for second reading and adoption
• Once adopted, October 20, 2023, the SB 9 Permanent Ordinance would be in effect, which is thirty (30) days from adoption on September 20.

A draft ordinance exhibit containing proposed regulations has been prepared based on ad hoc committee and staff recommendation, for the Planning Commission’s review at this July 25 study session. With the above proposed schedule in mind, it is recommended that the Commission focus its discussion at the July 25 Study Session to provide clear directions to staff regarding any comments and further revisions to the draft permanent ordinance as included in Attachment 2. It is important for the Planning Commission to be able to make a recommendation by its August 3 public hearing for a recommendation to the City Council in order to timely continue implementing local regulations.

Planning Commission Page 3
Study Session – SB 9 Permanent Ordinance
July 27, 2023
Additional Legislative Developments Regarding SB 9
Staff also wishes to bring to the Commission’s attention recent legislative developments regarding SB 9. In 2023, Senate President pro-Tempore Toni G. Atkins (D-San Diego) introduced Senate Bill 450 to modify and strengthen certain provisions of SB 9 as a part of the legislative efforts to promote the ministerial review process and utilization by applicants and property owners. SB 450 passed Senate on May 12, 2023, and is currently with the Assembly for hearing. If adopted as currently proposed, SB 450 would do the following, among other changes:
• Prohibits local governments from imposing objective zoning, subdivision, and design standards that do not apply uniformly to development within the underlying zone. • Require local governments to either approve or deny an application for a new SB 9 unit or lot split within 60 days.
• Provide additional enforcement authority to the California Department of Housing and Community Development’s (HCD) over SB 9 developments.

At this time, SB 450 has yet to be approved by the Legislature and has not been signed into law.

It is uncertain whether any additional changes may be made to the bill as it moves forward in the legislative process. Since SB 450 is not currently governing law, the foregoing information is provided for the Planning Commission’s information only as an update. As with any legislative change, if the bill is approved and signed into law, the Town would likely have to review its permanent SB 9 ordinance to ensure consistency with statutory requirements and make amendments as necessary.

NOTICING/PUBLIC OUTREACH
The Study Session was noticed as a Public Hearing and notice was provided to the public. The public was advised of this Public Hearing in the following ways:
• Public Newspaper – Town Crier – July 19, 2023
• Public Posting Places – July 14, 2023
• Town Website: www.losaltoshills.ca.gov – July 19, 2023 • City Manager Weekly newsletter – June 23 and 30, July 7, 14, and 21 As of July 19, 2023, staff has not received any public comments.

DISCUSSION
The proposed SB 9 permanent ordinance implements local regulations that are tailored to Los Altos Hills and are consistent with its Housing Element as well as state law. To illustrate, the draft permanent ordinance carries over certain regulations from the interim ordinance, and makes other changes based on the Town’s experience in processing SB 9 applications during the interim period. The purpose of this third Study Session is to comprehensively review these regulations.

The following sections highlights and summarizes major regulatory components, including development and design standards, proposed in the draft permanent ordinance.

Planning Commission Page 4
Study Session – SB 9 Permanent Ordinance
July 27, 2023
Definitions
The permanent ordinance redefines “primary dwelling” and adds three definitions of “adjacent parcel,” “SB 9 Lot Split,” and “SB 9 Lot” to provide consistent reference throughout the draft ordinance.

SB 9 Lot Split
The permanent ordinance includes application materials for tentative map and final map based on the information required for standard subdivisions in the Town, pursuant to Municipal Code Section 9-1.504, 9-1.1205, and the Subdivision Application Packet. In addition, detailed SB 9 Lot Split review procedures are added to the permanent ordinance, requiring the tentative map and final map to be reviewed ministerially without public hearings. The draft ordinance also clarifies the Community Development Director’s decision shall be final. These edits are included for consistency with state law and to create a streamlined review process for such ministerial lot split projects.

The following development standards of SB 9 Lot Split are proposed or clarified in the draft permanent ordinance.
• Maximum number of units permitted on parcels created through SB 9 subdivisions. • Location, height, and massing requirements to rebuild existing structures. • Maximum depth to width ratio of 3:1 for a newly created lot. • Shared driveway options as identified in graphics.

To be consistent with the state law, all requirements for SB 9 Lot Split would be waived by the Community Development Director if the applicable regulation at issue would physically preclude the construction of two SB 9 Units on either resulting parcel or would result in an SB 9 Unit of less than eight hundred (800) square feet in floor area.

SB 9 Development Standards
The sections below provide a brief overview of the current baseline development standards for SB 9 units under the Town’s interim urgency ordinance, which are ministerially approved housing units in accordance with state law including the required 4-foot side and rear setbacks; the potential incentives options to encourage applicants to provide a 30-foot side and rear yard setback as specified in the underlying zoning districts and voluntarily offer easements to the Town, which is required for any new primary residences (except ADUs) in the Town that are discretionarily reviewed.

Baseline
Currently, under the interim SB 9 ordinance set forth in Los Altos Hills Municipal Code (LAHMC) Section 10-1.1507, SB 9 units are required to meet the following standards. • Forty (40)-foot front and four (4)-foot side and rear setbacks for any new SB 9 units. • Maximum eight hundred (800) square-foot floor area for one (1) SB 9 unit. • Maximum sixteen (16) – foot building height.

Planning Commission Page 5
Study Session – SB 9 Permanent Ordinance
July 27, 2023
• Maximum number of units: two (2) SB 9 Units, ADU, JADUs as required by the Town’s ADU Ordinance and state law.
• For lots created by an SB 9 Urban Lot Split, MDA is MFA plus additional 2,100 square feet.
• No basement and bunkers are permitted.
• One parking space is required outside of the 40-foot front and 30-foot rear and side setbacks of the underlying zoning districts.
• SB 9 units are not permitted in conservation easements, within twenty-five (25) feet of the top of a creek bank, within critical root zones, within ten (10) feet of parcel line next to a pathway, and in areas with slopes greater than forty (40) percent.

At the last study session, the Planning Commission provided direction that most of these standards should remain and be carried over to the permanent ordinance. The ad hoc committee and staff have proposed the following modifications:
• Maximum one thousand (1,000) square-foot floor area for one (1) SB 9 unit. The requirement is consistent with the MFA requirement for an ADU located within the 30- foot rear and side setback. It is also consistent with Housing Element Program B-10. • SB 9 units are not permitted in areas with slopes greater than thirty (30) percent. • Parking requirement is modified to be consistent with ADU parking requirements.

Staff also notes that the location requirements would be clarified so as not to physically preclude the construction of up to two (2) units from being at least 800 square feet in floor area for each unit, except for a recorded easement.

Incentives for Compliance with Standard Development Regulations In addition to standard, objective development regulations, the Town also proposes an option to include various development incentives to provide an opportunity for applicants to receive development bonuses in exchange for voluntary compliance with additional development requirements that do not apply to SB 9 units per state law. Availability of incentives may encourage voluntary compliance with standards that are stricter than what state law requires and may further preserve the Town’s development pattern and characteristics. However, all SB 9 applicants would continue to be able to utilize the ministerial SB 9 development process and have their units approved in the same streamlined manner, regardless of any incentives that the Town may choose to provide.

As discussed in the second study session as recommended by the ad hoc committee, development incentives are added in the draft permanent ordinance on conditions that the SB 9 development meets a set of criteria to encourage compliance with the development standards of the underlying zoning district.
(1) Criteria for Development Incentives:
• The proposed SB 9 Unit meets the 40-foot front and 30-foot side and rear setbacks. • The applicant or property owner proposes to dedicate to the Town all the following as applicable:

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Study Session – SB 9 Permanent Ordinance
July 27, 2023
o For any parcel, a public right-of-way interest pursuant to Section 9-1.703. o For a parcel with a slope equal to or exceeding thirty percent (30%), an open space easement covering the entire sloped area.
o For a parcel containing a creek identified in General Plan, an open space easement providing at least a twenty-five (25) feet buffer zone from the top of the creek bank. o For a parcel with a proposed pathway identified on the Town’s Pathway Master Plan, a pathway easement of at least ten (10) feet in width covering the identified pathway segment.
(2) Development Incentives- applicable if both setback and dedication criteria above are met:
• The parcel may calculate its maximum floor area (MFA) and maximum development area (MDA) in accordance with the Town’s LUF formula.
• Of said MFA permitted, three thousand (3,000) square feet would be the maximum size for the development of one SB 9 Unit.
o Eight hundred (800) square feet of additional floor area and development area beyond the MFA/MDA is permitted for an ADU pursuant to the Town’s ADU ordinance.
o Additionally, for a parcel not created through an SB 9 Lot Split, eight hundred (800) square feet of additional MFA and twelve hundred (1,200) square feet of additional MDA would be available towards the construction of one (1) SB 9 Unit • The maximum height of an SB 9 Unit would be twenty-seven (27) feet. • A basement or bunker would be permitted for SB 9 Units subject to the requirements of Section 10-1.202 and the setback requirements under Section 10-1.505, which also apply to any light wells and roof eaves. Note, however, roof decks or balconies are not permitted for SB 9 units.
• Required Parking. The parking spaces at least ten (10) feet wide by twenty (20) feet deep are required based on the floor area of the proposed SB 9 units listed below.

Floor Area Number Forms Setbacks
Under 1000 square feet 1 uncovered Permitted in the Setback areas 1,000 to 1,600 square feet 1 uncovered Outside the 40-foot front and 30-foot rear and side setbacks
1,600 to 2,400 square feet 2 uncovered
2,400 to 3,000 square feet 2 covered
Objective Design Standards
The proposed permanent ordinance incorporates as objective standards the Town’s Grading Policy, Outdoor Lighting Policy, and Metal Roof Policy, as well as the standard condition of approval for Light Reflective Value (LRV) requirements for exterior walls and roofs. In addition, the following objective design standards are included to guide SB 9 development to be consistent with the standard single-family residential development in the underlying zoning district.

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Study Session – SB 9 Permanent Ordinance
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• For a detached unit greater than 1,000 square feet in floor area or an attached unit, the exterior materials and design shall match the design of any existing primary dwelling unit on the parcel. If future additions increase the total floor area of an existing SB 9 unit to be greater than 1,000 square feet, this provision applies. • Detached dwelling units will be required to maintain no less than ten (10)-foot separation measured from the exterior walls.
• Building features and equipment, such as operable doors, attached HVAC, generators, hardscape, and temporary construction equipment, are required to maintain a minimum 10-foot setback from any property line.
• Windows may not occupy more than 33% of any façade of an SB 9 unit, and must install “privacy glass” if the distance is less than ten (10) feet between the windows and the property line that the windows faces, unless the windows are six (6) feet or higher. • An arborist report is required for construction within the driplines of heritage oak trees. • WELO calculations and landscape deposit required for other residential development projects are required for proposed landscape associated with SB 9 units.

NEXT STEPS
Based on the Planning Commission discussion, staff will incorporate revisions and feedback into the permanent ordinance draft, and return to the Commission for formal recommendation to the City Council during a subsequent public hearing.

ENVIRONMENTAL REVIEW
A Study Session is not a “project” defined by CEQA Guidelines Section 21065; In addition, SB 9 exempts local ordinances implementing SB 9 from CEQA requirements. Therefore, CEQA is not applicable.

ATTACHMENTS

1. Online SB 9 Questionnaire Result by February 10, 2023

2. Draft SB 9 Permanent Ordinance—Exhibit A (containing proposed regulations)

3. SB 9 Urgency Ordinance Changes Noted in Redlines – Exhibit B

STUDY SESSION DRAFT
Ordinance ____ - Exhibit A Page 1

EXHIBIT A
SECTION I. Revisions to Article 5, “Area, Coverage, Height and Setback Limitations” of Chapter 1 of Title 10
Sections 10-1.502 and 10-1.503 are amended as shown as follows, with additions in double underline and deletions in strikethrough. Sections, subsections, paragraphs and texts not modified by this amendment are not included below and shall remain in full force and effect.

Article 5. Area, Coverage, Height and Setback Limitations” . . .
10-1.502 Development area.

Except as provided in subsections (c) and (d) of this section, the amount of development area in square feet allowable on a parcel or lot shall not exceed the amounts determined by application of the formula in subsection (a) of this section where An is net area in acres, S is the average slope of the parcel or lot in percent, as defined in Section 10-1.202, LUF is the lot unit factor as defined by Section 10-1.202 and MDA is the maximum development area allowable. . . .
(6) Development Area Bonus. A development area bonus (five hundred (500) square foot maximum) of one square foot for every one square foot of roof-mounted photovoltaic (PV) power generation facility (solar panels) shall be granted subject to the following requirements:
(i) The development area bonus shall apply only to properties that do not already exceed the maximum development area allowable,
(ii) The roof-mounted PV facility shall be grid tied or connected, (iii) For new residences, the roof-mounted PF facility shall be fully installed and grid connected prior to the final inspection and occupancy of the new residence, (iv) For all other structures and projects, the roof-mounted PV facility shall first be installed with a building permit and receive satisfactory final inspection prior to granting of the development area bonus,
(v) The development area bonus shall only be used for projects that otherwise comply with all other zoning and site development ordinances,
(vi) The maximum allowable development area bonus shall be reduced by one square foot for every one square foot of ground-mounted PV system over five hundred (500) square feet that is exempted from development area requirements by action of the Planning Commission, (vii) Any development area bonus request may be referred to the Planning Commission by the Planning Director Community Development Director. A development area bonus request for a property of less than one net acre in size shall be subject to Planning Commission review and decision,
(viii) Sunset Provision. This section shall expire on July 31, 2016.

STUDY SESSION DRAFT
Ordinance ____ - Exhibit A Page 2
(ix) The Planning Director Community Development Director shall provide the City Council with an annual report that evaluates the effectiveness of this subsection as an incentive for increasing PV system installations;
(7) Photovoltaic Power Generation Facilities. Photovoltaic power generation facilities that are connected to the grid and that are five hundred (500) square feet or less are exempt from the requirements of this section. Photovoltaic power generation facilities greater than five hundred (500) square feet in area are subject to the requirements of this section, unless the Planning Commission determines that the off-site visual impacts of the facility are adequately mitigated. (c) Minimum MDA. The allowable development area on any parcel or lot shall not be reduced to less than seven thousand five hundred (7,500) square feet by application of the provisions of this section, except as set forth in Section 10-1.502(e) or except in the case of parcels or lots which have a lot unit factor of 0.50 or less. Parcels or lots which have a lot unit factor of 0.50 or less require a Conditional Development Permit and development area may be restricted below seven thousand five hundred (7,500) square feet as a condition of the permit. Maximum development area for lots which require a Conditional Development Permit shall be established as the maximum floor area allowed by Section 10-1.503(c), plus two thousand one hundred (2,100) square feet. The Site Development Authority may approve development area of up to a total of four thousand five hundred (4,500) square feet for any lot or parcel without requiring a variance, so long as the findings for a Conditional Development Permit are made. Notwithstanding the foregoing, this subsection (c) shall not apply to any parcel that has a LUF less than 1.0 and was created after the enabling date of the ordinance implementing this sentence. . . .
10-1.503 Floor area.
. . .
(c) Minimum MFA. The allowable floor area on any parcel or lot shall not be reduced to less than five thousand (5,000) square feet by application of the provisions of this section, except as set forth in subsection (e) of this section or except in the case of parcels or lots which have a lot unit factor of 0.50 or less. Parcels or lots which have a lot unit factor of 0.50 or less require a Conditional Development Permit and floor area may be restricted below five thousand (5,000) square feet as a condition of the permit. Maximum floor area for lots which require a Conditional Development Permit shall be established as the ratio of the lot unit factor (LUF) for the lot divided by 0.50 times five thousand (5,000) square feet. The Site Development Authority may approve floor area of up to two thousand five hundred (2,500) square feet for any lot without requiring a variance, so long as the findings for a Conditional Development Permit are made. Notwithstanding the foregoing, this subsection (c) shall not apply to any parcel that has a LUF less than 1.0 and was created after the enabling date of the ordinance implementing this sentence. . . .

STUDY SESSION DRAFT
Ordinance ____ - Exhibit A Page 3
SECTION II. Revisions to Article 15, “Objective Standards for Qualified Senate Bill 9 Subdivisions and Development Projects” of Chapter 1 of Title 10 Article 15 of Chapter 1 of Title 10 is amended in its entirety and restated as follows. Articles, sections, subsections, paragraphs and texts not modified by this amendment are not included below and shall remain in full force and effect.

Article 15. Objective Standards for Qualified Senate Bill 9 Lot Splits and Development Projects
10-1.1501 Purpose and Intent.

The purpose of this article is to establish objective standards and regulations to govern the development of qualified Senate Bill No. 9 (2021) (“SB 9”) subdivisions and development projects on residential zoned properties within the Town of Los Altos Hills. The establishment of these regulations will result in the orderly subdivision and development of qualified SB 9 projects while ensuring that the new units are consistent with the semi-rural character of the Town and do not create any significant impacts with regards to public infrastructure or public safety. The regulations are established to implement the requirements under California Government Code Sections 65852.21 and 66411.7.
10-1.1502 Definitions.

For purposes of this article, the following definitions apply:
(a) Adjacent parcel means any parcel of land that (1) adjoins another parcel by any portion of a shared property line; (2) is separated from another parcel at any point only by a public right-of-way, ingress-egress easement, or public or private easement; or (3) is separated from another parcel only by other real property which in common ownership or control of the same owner or development project applicant.
(b) Accessory dwelling unit or ADU, means an attached or a detached residential dwelling unit as defined by Section 10-1.1402 of this code.
(c) Dwelling unit or Dwelling means an ADU, JADU, a primary dwelling, and an SB 9 Unit, as applicable.
(d) Junior accessory dwelling unit or JADU, or “efficiency unit”, means a dwelling unit as defined by Section 10-1.1402 of this code.
(e) Conservation Easement means restrictive covenants that run with the land and bind upon successive owners that protects against future development such as preservation of open space, scenic, riparian, historical, agricultural, forested, or similar conditions. Open space and riparian easements are included in this definition. (f) Existing dwelling means a primary dwelling or other dwelling unit on a parcel that exists prior to any voluntary demolition or reconstruction or remodel where no more than 50% of the exterior wall framing has been removed or altered. Any existing dwelling unit where more than 50% of the exterior wall framing has been removed is considered a new dwelling for purposes of this article.

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(g) Panhandle means the narrow strip of land on a flag lot, typically less than 30 feet in width, that provides access to a public or private road. (h) Primary dwelling means a building as defined in Section 10-1.202 and is reviewed and entitled as a single-family residence pursuant to the provisions of Article 3, Chapter 2 of Title 10 of this code.
(i) Private Road means a road, way, or street in private ownership and under private maintenance, not offered for dedication as a public road, way, place, or street, which affords the principal means of access to three or more lots or parcels which do not have frontage on a public street.
(j) SB 9 Lot Split means a subdivision of an existing parcel to create two (2) new parcels using the provision in this article, Article 16 of Chapter 1 of Title 9 of this code, and the provisions identified in California Government Code Sections 65852.21 and 66411.7. (k) SB 9 Lot means single-family residential lots created from an SB 9 Lot Split. (l) SB 9 dwelling unit or SB 9 unit means a dwelling unit that is developed using the provisions in this article and the provisions identified in California Government Code Sections 65852.21 and 66411.7.
10-1.1503 SB 9 Lot Split Eligibility.

Any parcel within the Residential-Agricultural (R-A) zoning district meeting the requirement of this article and Article 16 of Chapter 1, Title 9 of this code is eligible for SB 9 Lot Split, except under the following circumstances:
(a) Any parcel that was established through a prior exercise of SB 9 Lot Split as provided for in this article.
(b) Any parcel proposing to be subdivided that is adjacent to another parcel where either the owner of the parcel proposing to be subdivided or any person acting in concert with said owner has previously subdivided that adjacent parcel using the provisions in this article.

For the purposes of this article, “any person acting in concert” with the owners includes, but is not limited to, an individual or entity operating on behalf of, acting jointly with, or in partnership or another form of cooperative relationship with, the property owner. (c) Any parcel located within an historic district or included on the State Historic Resources Inventory, as defined in Section 5020.1 of the Public Resources Code, or a parcel within a site that is designated or listed as a Town of Los Altos Hills or Santa Clara County landmark or historic property or district pursuant to a Town of Los Altos Hills or Santa Clara County ordinance.
(d) Any parcel where SB 9 Lot Split would require the demolition or alteration of any of the following types of housing:
(1) Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. (2) Housing that is subject to any form of rent or price control through a public entity's valid exercise of its police power.

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(3) A parcel or parcels on which an owner of residential real property has exercised the owner's rights under Government Code section 7060 et seq. to withdraw accommodations from rent or lease within 15 years before the date that the development proponent submits an application.
(4) Housing that has been occupied by a tenant in the last three years. (e) Any parcel fully encumbered with a conservation easement or identified for conservation in an adopted natural community conservation plan pursuant to the Natural Community Conservation Planning Act (Chapter 10 (commencing with Section 2800) of Division 3 of the Fish and Game Code), habitat conservation plan pursuant to the federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.), or other adopted natural resource protection plan.
(f) Any parcel that is designated prime farmland or farmland of statewide importance, as defined pursuant to United States Department of Agriculture land inventory and monitoring criteria, as modified for California, and designated on the maps prepared by the Farmland Mapping and Monitoring Program of the Department of Conservation, or land zoned or designated for agricultural protection or preservation by a local ballot measure.
(g) Any parcel containing wetlands, as defined in the United States Fish and Wildlife Service Manual, Part 660 FW 2 (June 21, 1993), that would prevent the development of the parcel.
(h) Any parcel within a very high fire hazard severity zone, as determined by the Department of Forestry and Fire Protection pursuant to Government Code Section 51178, or within a high or very high fire hazard severity zone as indicated on maps adopted by the Department of Forestry and Fire Protection pursuant to Section 4202 of the Public Resources Code. This subsection does not apply to parcels that have been excluded from specific hazard zones by actions of the Town pursuant to Government Code section 51179(b), or parcels that have adopted fire hazard mitigation measures pursuant to existing building standards or state fire mitigation measures applicable to the development.
(i) Any parcel with a hazardous waste site that is listed pursuant to Government Code Section 65962.5 or a hazardous waste site designated by the Department of Toxic Substances Control pursuant to Section 25356 of the Health and Safety Code, unless the State Department of Public Health, State Water Resources Control Board, or Department of Toxic Substances Control has cleared the site for residential use or residential mixed uses.
(j) Any parcel within a special flood hazard area subject to inundation by the 1 percent annual chance flood (100-year flood) as determined by the Federal Emergency Management Agency (FEMA) in any official maps published by the FEMA. However, a SB 9 Lot Split and/or development project may be located on a parcel described in this subsection if (1) the parcel is otherwise eligible for approval under the provisions of this article and (2) the project applicant is able to satisfy all applicable federal qualifying criteria demonstrating either of the following are met:

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(1) The site has been subject to a Letter of Map Revision prepared by the FEMA and issued to the Town.
(2) The site meets FEMA requirements necessary to meet minimum flood plain management criteria of the National Flood Insurance Program pursuant to Part 59 (commencing with Section 59.1) and Part 60 (commencing with Section 60.1) of Subchapter B of Chapter I of Title 44 of the Code of Federal Regulations. (k) Any parcel within a regulatory floodway as determined by the FEMA in any official maps published by the FEMA, unless the SB 9 Lot Split and/or development project has received a no-rise certification in accordance with Section 60.3(d)(3) of Title 44 of the Code of Federal Regulations.
(l) Any parcel containing habitat for protected species identified as candidate, sensitive, or species of special status by state or federal agencies, fully protected species, or species protected by the federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.), the California Endangered Species Act (Chapter 1.5 (commencing with Section 2050) of Division 3 of the Fish and Game Code), or the Native Plant Protection Act (Chapter 10 (commencing with Section 1900) of Division 2 of the Fish and Game Code). 10-1.1504 Objective Development Standards for SB 9 Lot Splits.

The following objective standards and regulations apply to all SB 9 Lot Splits under this article:
(a) The subdivision shall create no more than two new parcels of approximately equal area provided that one parcel shall not be smaller than 40 percent of the lot area of the original parcel proposed for subdivision. In no instance shall any resulting parcel be smaller than 1,200 square feet in area.
(b) Where noted, the requirements of this Section 10-1.1504 shall be waived by the Community Development Director if the applicable regulation at issue would physically preclude the construction of two SB 9 Units on either resulting parcel or would result in an SB 9 Unit of less than eight hundred (800) square feet in floor area. All such waivers made by the Community Development Director shall be final. (c) No more than two (2) dwellings shall be permitted on a new parcel created through an SB 9 Lot Split. For the purposes of this subsection, “dwelling unit” means a primary dwelling, an SB 9 Unit, an Accessory Dwelling Unit or Junior Accessory Dwelling Unit. (d) Existing parcels shall be split approximately perpendicular to the longest contiguous property line. Resulting lots shall have a maximum depth to width ratio of three-to-one (3:1). However, this requirement shall be waived if the subdivider demonstrates that it would prohibit an SB 9 Lot Split that otherwise meets the requirements of this article. (e) The front parcel line of any newly created parcel shall be the parcel line that is closest to or parallel to the public or private road that serves the parcel. (f) A 20-foot-wide panhandle (for a flag lot) or an ingress/egress easement shall be provided for all new parcels that do not have direct frontage on a public or private road. Driveway access to the new parcels shall be shared as identified in Figure 1, 2, and 3, unless the new driveways are a minimum of 100 feet apart.

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Figure 1 Figure 2 Figure 3
(g) Easements for access and public and private utilities shall be provided for any newly created parcel that does not front on a public or private street. (h) Separate utility meters shall be provided for each parcel prior to recordation. (i) All newly created parcels shall be connected to public sewer or provide a private onsite wastewater treatment system (OWTS) that is fully contained within the new parcel boundaries to be approved by the Santa Clara County Environmental Health Department. (j) No setbacks shall be required for an existing structure on the parcel from a proposed parcel line.

For the purposes of this article, existing dwelling units or accessory structures may be demolished and reconstructed as new dwelling units to the same or lesser massing and dimensions of the previously existing dwelling or accessory structure at the same location and within the same building footprint. Roof decks and balconies are permitted if reconstructed in the same location and orientation. However, in no event shall any reconstruction increase the height, floor area, development area, or setbacks of the prior existing dwelling or structure.
(k) In the event that an applicant desires to demolish and reconstruct an existing dwelling unit or accessory structure, the applicant shall apply for a demolition permit with the Town concurrently or after submitting an application pursuant to this article, and shall submit with the demolition permit application a pre-demolition survey prepared by a licensed surveyor or civil engineer and as-built plans and elevations of the existing dwelling or structure prepared by a licensed architect. All other accessory structures that are not primary or secondary dwellings shall be reviewed by the applicable hearing body pursuant to pursuant to the provisions of Article 3, Chapter 2 of Title 10 of this code. (l) An SB 9 Lot Split is subject to all impact or development fees related to the creation of a new parcel pursuant to Title 9 of this code and any applicable fee schedules adopted by the City Council and most currently in effect.
10-1.1505 Objective Development Standards for SB 9 Units.

The following objective standards and regulations apply to the development of SB 9 Units:
(a) Number of Units Permitted.
(1) For parcels not created through an SB 9 Lot Split, the following unit types and count shall be permitted on one parcel:

A. a primary dwelling and an SB 9 unit (or two SB 9 units); B. ADU as provided by Article 14 of Title 10 of this code; and

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C. a JADU as provided by Article 14 of Title 10 of this code. (2) For parcels created through an SB 9 Lot Split, the following unit types and count shall be permitted:

A. Up to two dwelling units, consisting of existing or proposed (including reconstruction pursuant to Section 10-1.1504(j) of this code) primary or secondary dwellings or SB 9 Units; or
B. Up to two SB 9 Units.
(b) Unit Size and Construction. The maximum floor area for an SB 9 Unit shall be one thousand (1,000) square feet, and the maximum height shall be sixteen (16) feet. No basement, bunker, or roof deck shall be permitted. For parcels not created through an SB 9 Lot Split, eight hundred (800) square feet of floor area and development area for an SB 9 Unit shall be excluded from the maximum floor area and development area calculation through the lot unit fact (LUF) as defined under Section 10-1.202 for the underlying parcel pursuant to Article 5 of this code.
(c) Setbacks. The minimum front yard setback for any new SB 9 dwelling unit shall be 40 feet measured from any point of the architecture extrusions, including roof eaves and permanent wall features to the front parcel line or a public or private road right-of-way and four (4) feet from the side and rear parcel lines. In addition, all outdoor patios, covered patios, decks, and other hardscape, except walkways as defined in Section 10-

1.202, shall meet the standard 40-foot front and 30-foot side and rear setbacks as set forth under Section 10-1.505. Notwithstanding the foregoing, no setback shall be required for a dwelling unit proposed pursuant to this article that is constructed in the same location and to the same dimensions as an existing structure on the parcel in accordance with Section 10-1.1504(j).
(d) Structures shall not be located in the following locations:
(1) In areas encumbered by a recorded easement, including but not limited to, public utility easements, conservation easements, access easements, pedestrian pathway easements and open space easements;
(2) In areas within twenty-five (25) feet of the top of a creek bank; (3) Within 10 feet of a parcel line where a pathway is designated on the adopted Master Path Plan for the Town of Los Altos Hills.
(4) Areas with slopes greater than thirty percent (30%). (e) Required Parking. One on-site parking space is required for SB 9 Unit as follows:
(1) The parking space may be covered or uncovered and shall be at least ten (10) feet wide by twenty (20) feet deep.
(2) The space may be provided as tandem parking on a driveway or located in a setback area, unless specific findings are made by the Community Development Director that parking in a setback area or as tandem is not feasible based upon specific site or regional topographical or fire and life safety conditions.

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(3) The parking space shall not encroach into a required fire truck turnaround or obstruct the driveway access to the primary dwelling.
(f) Heritage Oak Tree Removal. If an SB 9 Unit development project proposes to remove, or damages in the course of construction, a heritage oak tree, the applicant shall be required to provide replacement trees in accordance with the following:

For a heritage oak tree between 12-18 inches in trunk diameter: replacement of two (2) 24-inch box California native oak trees.

For a heritage oak tree between 18-24 inches in trunk diameter: replacement of three (3) 24-inch box California native oak trees.

For a heritage oak tree greater than 24 inches in trunk diameter: replacement of four (4) 24-inch box California native oak trees.
(g) Development Incentives for SB 9 Units on Parcels Meeting Certain Requirements.

If an SB 9 Unit is proposed to be constructed to meet the 40-foot front and 30-foot side and rear setbacks as set forth under Section 10-1.505, and if the applicant or property owner proposes to dedicate to the Town all of the following as applicable: (i) for any parcel, a public right-of-way interest pursuant to Section 9-1.703; (ii) for a parcel with a slope equal to or exceeds thirty percent (30%), an open space easement covering the entire sloped area (iii) for a parcel containing a creek identified in the General Plan, an open space easement providing at least a twenty-five (25) feet buffer zone from the top of the creek bank; or (iv) for a parcel with a proposed pathway identified on the Town’s Pathway Master Plan, a pathway easement of at least ten (10) feet in width covering the identified pathway segment, then any SB 9 Unit constructed on the parcel shall receive the following development incentives:
(1) The maximum floor area (MFA) and maximum development area (MDA) permitted on the parcel shall be calculated in accordance with the requirements of the underlying zoning district per Sections 10-1.502 and 10-1.503. Of said MFA permitted, three thousand (3,000) square feet shall be available for the development of SB 9 Units, and that eight hundred (800) square feet of additional floor area and development area beyond the MFA/MDA is permitted for an ADU pursuant to Article 14 of Title 10 of this code. Additionally, for a parcel not created through an SB 9 Lot Split, eight hundred (800) square feet of additional MFA and twelve hundred (1,200) square feet of additional MDA shall be applied towards the construction of one (1) SB 9 Unit.
(2) The maximum height of an SB 9 Unit shall be twenty-seven (27) feet. (3) A basements or bunker shall be permitted for SB 9 Units subject to the requirements of Section 10-1.202 and the setback requirements under Section 10-1.505, which shall also apply to any light wells and roof eaves.
(4) Required Parking for an SB 9 Unit shall be permitted as follows, based on the proposed floor area of said unit. All parking spaces shall be at least ten (10) feet wide by twenty (20) feet deep.

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Floor Area Number Forms Setbacks
Under 1000 square feet 1 uncovered Permitted in the
Setback areas
1,000 to 1,600 square feet 1 uncovered Outside the 40-
foot front and 30-
foot rear and side
setbacks
1,600 to 2,400 square feet 2 uncovered
2,400 to 3,000 square feet 2 covered
(h) Driveways and Access. All dwelling units on a parcel shall be served by a common driveway from the nearest public or private street. Driveway access to all new units shall be compliant with the Santa Clara County Fire Department standard details and specifications for driveways and turnarounds.
(i) Sewer Connection. All newly created dwelling units shall be connected to public sewer or provide an onsite wastewater treatment system (OWTS) approved by the Santa Clara County Department of Environmental Health.
(j) Occupancy Requirements. An SB 9 Unit may be rented separately from the primary dwelling unit. However, no SB 9 Unit shall be rented for a period of less than thirty-one (31) days and cannot be occupied as a short-term rental unit, as defined under section 10-

1.1202.
(k) Development projects pursuant to this article shall be subject to all impact or development fees related to the development of a new dwelling unit. (l) Notwithstanding the foregoing, no housing development project shall be permitted on a site pursuant to this article if the underlying parcel falls within any provision under Section 10-1.1503 (c) through (l).
(m) Where noted, the requirements of this section 10-1.1505 except for the requirement under subsection (d)(1) above shall be waived by the Community Development Director if the applicable regulation at issue would physically preclude the construction of two SB 9 Units on either resulting parcel or would result in an SB 9 Unit of less than eight hundred (800) square feet in floor area. All such waivers made by the Community Development Director shall be final.
10-1.1506 Objective building and design requirements for SB 9 Units.

All SB 9 Units shall be reviewed and approved without discretionary review or public hearing. As part of the Planning Department’s ministerial approval, the following requirements shall be confirmed for an SB 9 Unit:
(a) All SB 9 Units shall comply with applicable requirements of the California Building Standards Code including but not limited to the Residential Code and the Fire Code. (b) Proposed grading for SB 9 Unit development and associated site improvements shall not exceed the vertical cuts and fills thresholds listed as below:

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Cut Fill
House and Garage 8’ 3’
Driveway 10’ 5’
Fire Truck Turnaround 7’ 5’
Patio and Yards 4’ 3’
(c) The height of lowest finished floor(s) of a structure shall not be set in excess of four feet six inches (4’-6”) above the existing grade, to assure that structures step with the slope.

Supported decks shall not exceed three (3) feet above adjoining grade except where located within six (6) feet of an exterior wall of a building. (d) For detached units proposed or expanded to be greater than 1,000 square feet in floor area, the exterior materials and design shall match the design of any existing primary dwelling unit on the parcel through the use of the same exterior wall materials, identified color tones, window types, door and window trims, roofing materials and roof pitch. (e) For an attached unit, the exterior materials, windows and other architectural features shall match the existing structure by employing the same building form, color tones, window design, door and window trims, roofing materials and roof pitch. (f) Detached units shall maintain no less than ten (10)-foot separation measured from the exterior walls.
(g) All operable doors, outdoor steps, landings, railings, HVAC equipment attached to a dwelling, propane tanks, generators, water collection tanks, hardscape, storage for trash receptacles, above-ground backflow preventer valves and temporary construction equipment shall be located at least ten (10) feet away from any property line. Operable doors shall not face a property line within ten (10) feet from the door entrance. (h) The distance between individual dwelling units on the parcel, inclusive of eaves, shall be at least ten (10) feet.
(i) No exterior entrance shall face the rear or side property lines if the distance is less than thirty (30) feet between the entrance and the property line that the entrance faces. (j) Windows shall not occupy more than 33% of any façade of an SB 9 Unit. Prior to issuance of certificate of occupancy, windows shall install “privacy glass” if the distance between the windows and the property line facing the window is less than ten (10) feet. However, privacy glass shall not be required if a window is six (6) feet or higher measured from the finish floor to the bottom of window sills.
(k) Exterior wall colors and materials shall have a light reflectivity value (LRV) of 50 or less and roof materials shall have a light reflectivity value (LRV) of 40 or less. All metal roofs shall conform to a color specified in Exhibit A of the Metal Roofing Policy approved by the Planning Commission and most currently in effect.

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(l) Exterior building lighting shall be fully shielded and downward facing and limited to one exterior light fixture per exterior doorway, or the minimum necessary to comply with the California Building Standards Code.
(m) The following lighting features are permitted. Light emission and color temperatures of any light bulbs used hall be limited as follows:

Maximum Light
Emission (Lumens, Φv)
Maximum Color Temperature
(Kelvin, K)
Path Lights 200 2700
Step Lights 110 2700
Exterior Wall Scones 600 3000
Recessed Ceiling Lights 600 3000
Pendant Lights 600 3000
Gate Lights 600 3000
Tree Lights 300 (600 for two fixtures) 2700
Temporary Construction
Lighting
500 3000
(n) Recessed lights and downlights shall not be installed in second floor roof eaves. Such lights in first floor eaves shall be located over entryways, garage doors, and patio doorways only. Recessed lights and downlights in first floor roof eaves shall be positioned so that the light cone does not shine down into a neighboring property. No lighting shall be placed at or near the peak of the roof line of a one- or two-story gabled roof.
(o) Pathway and driveway lighting shall be fully shielded fixtures, directed downward and no taller than 18 inches. The spacing between pathway lights shall be 20 feet on center. (p) Garage door windows, panels, or other opening shall not emit light more than 30% of the door’s surface area. The emitting light shall be translucent, allowing no more than 30% of the interior light emission to pass through to the outside. (q) Notwithstanding subsection (l) above, the following outdoor lighting are prohibited:
(1) Any light beams that emits or stretches beyond the aerial space defined by the property lines.
(2) Up-lighting of any kind.
(3) Wall wash lighting of exterior walls.
(4) Visible LED lighting strips, tape lights, and bistro lights.

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(5) Bistro lights, pendant lights, and any similar lighting fixtures hung down from or hung amongst trees.
(6) Tree lights, except those that are shielded and directed downward, not visible from any point outside of the property lines, and installed no more than 15 feet above the ground and not within 20 feet to any pathway lights. (r) All SB 9 Units are required to have fire sprinklers. A solid (no openings) one-hour fire wall shall be required between an SB 9 Unit, the primary dwelling, an ADU, or any two units configured as a duplex on a parcel. No internal accesses are permitted between the SB 9 Units and other dwelling units. In addition, a deed restriction in a form approved by the City Attorney’s Office shall be recorded stipulating that the duplex shall be maintained as two (2) separate units.
(s) An arborist report prepared by an International Society of Arboriculture (ISA) certified arborist shall be submitted by the applicant if construction is proposed within the driplines of any trees with trunk diameters of twelve (12) inches or greater to be preserved. (t) No roof decks are permitted on SB 9 dwelling units. A hedge, consisting of 15-gallon minimum evergreen shrubs, shall be planted along the parcel line (and outside of any easement) at six (6)-foot intervals adjacent to the wall of the SB 9 dwelling unit located closer than ten (10) feet from the side and rear property lines. . (u) A Water Efficient Landscape Ordinance (WELO) Worksheet of the Town shall be submitted by the applicant for any proposed landscape associated with SB 9 Units. The applicant shall furnish to the Town a Landscape Maintenance and Water Usage Deposit in the amount based on the Town’s adopted fee schedule most currently in effect. . For two years after completion of the project, Town staff shall review water usage for the parcel and conduct a site inspection to ensure any installed landscape features and screening remains in existence and continues to be adequately maintained. The deposit shall be applied towards remedying insufficient or removed landscape screening or water usage greater than the annual usage indicated on the approved parcel water budget worksheet.
(v) All electrical and utility services to a new dwelling unit shall be undergrounded. (w) Notwithstanding the foregoing subsections, any development or design standards that physically precludes an SB 9 dwelling unit from being 800 square feet in floor area shall be waived by the Community Development Director. All such waivers made by the Community Development Director shall be final.
10-1.1508 Adoption of Fees and Charges.

The City Council may establish and set by resolution all fees and charges, consistent with Government Code sections 65852.2 and 65852.22, and related provisions, as may be necessary to effectuate the purpose of this article.

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SECTION III. Revisions to Chapter 1 “Subdivisions” of Title 9 Addition of Article 16. A new Article 16, entitled “SB 9 Lot Splits”, is hereby added to Chapter 1 of Title 9 and shown in its entirety as follows.

Article 16. Senate Bill 9 Lot Split
9-1.1601 Application Materials for SB 9 Lot Splits. A subdivider seeking an SB 9 Lot Split as defined in Article 15 of Chapter 1, Title 10 of this code shall file a tentative parcel map and a parcel map, an SB 9 Lot Split Application established by the Town containing the information set forth in this section to the Planning Department for review. Submittals shall be accompanied by the required fees and deposits as prescribed by resolution of the City Council. (a) Application and Billing Agreement signed by all parties holding an ownership interest in any properties which are the subject of the proposed subdivision. (b) Numbered Tract Map, Parcel Map, or Certificate of Compliance to demonstrate the lot legality, pursuant to Section 9-1.318.
(c) Preliminary title report within the past six (6) months. (d) Topographic survey. Minimum contour interval is five (5) feet when the average slope exceeds 10% and two (2) feet when the average slope is less than 10%. (e) Preliminary approval of the percolation test from the Santa Clara County Department of Environmental Health, if the parcels must connect to onsite wastewater treatment systems (OWTS).
(f) A tentative Parcel Map containing the following information:
(1) Date, north arrow, scale, sufficient description to define the location, boundaries of the proposed tract and contour intervals, all located in the lower right-hand corner of the map.
(2) Adjacent properties on all sides of the proposed SB 9 Lot Split, including those separated by a public or private right-of-way, with information of the last name of owner or owners, Assessor Parcel Numbers, topographic features, and all improvements.
(3) The names, addresses, and telephone numbers of the recorded owners, subdivider, and State of California registered civil engineer or State-licensed land surveyor who prepared the preliminary map. The registered civil engineer or licensed land surveyor shall include his or her valid stamp, number, and signature; (4) Locations, names, widths, centerline radii, and centerline grades of all streets, roads, and rights-of-way in the proposed subdivision with typical cross-sections showing proposed improvements. Centerline grades shall be shown by a profile, preferably referred to mean sea level datum as established by the United States Geological Survey, or to Town approved bench marks established by the City Engineer. Cross-sections shall be presented as required by the City Engineer;

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(5) Gross and net acreage of each individual lot to the nearest one hundredth of an acre which may be based on the calculation of the gross and net acreage of the entire parcel;
(6) A number for each lot, dimensions of the lots, including frontage, depth, width, and gross and net area of each lot to the nearest hundredth of an acre; and (7) The location of any existing and/or proposed easements, including easements for conservation purposes, Open Space Easements and Pathway Easements. (g) A form prepared and signed by the registered civil engineer, or licensed land surveyor who prepared the Parcel Map setting forth the average slope, Lot Unit Factor (LUF) and slope density calculations for the original lot and for each new parcel; (h) Location, width, and character of all existing and proposed easements for drainage, water, sewage, public utilities, together with the location and approximate dimensions of any existing buildings and structures, driveways, pools, hardscape, retaining walls, septic tanks, leach fields, wells, active or abandoned, and proposed disposition; (i) Approximate location and direction of flow of all creeks, streams, and other watercourses and drainages, showing type of existing top-of-banks and creek depths, with a separate sheet showing cross-sections of all such creeks, streams, and watercourses, when such streams, creeks or other watercourses are three (3) feet in depth and/or the width is four (4) feet or more at the bed of the stream, creek, or other watercourse; (j) Location and building footprint of the existing structures identified by type. Structures to be removed shall be so marked.
(k) Location of all trees with trunks equal to or greater than twelve (12) inches in diameter.

Trees in concentrated areas shall be approximately marked on the map with a corresponding legend indicator. The trees proposed to be removed shall be identified on the tentative Parcel Map.
(l) Proposed or required Green Infrastructure;
(m) Conceptual grading design with the proposed contours at two (2)-foot intervals minimum if the existing ground slope is less than 10 percent, or at five (5)-foot intervals minimum if the existing ground slope is 10 percent or more.
(n) Conceptual drainage design show how runoff of surface waters from individual lots will be achieved and the ultimate disposal of all subdivision surface waters. (o) Approximate distance, size and location of the nearest existing sanitary sewer main line; Or the septic system locations on the proposed parcels, if the parcel proposes to connect to onsite wastewater treatment systems (OWTS).
(p) Source of domestic water supply.
(m) Fire protection system and design as required by the Los Altos Hills County Fire Protection District.
9-1.1602 Review and Approval of SB 9 Lot Splits.
(a) SB 9 Lot Splits shall be reviewed for conformance with the standards and requirements under Article 15 of Chapter 1, Title 10 of this code.

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Ordinance ____ - Exhibit A Page 16
(b) Upon completion of review and preparation of conditions of approval authorized by this chapter by the Planning Department, the Community Development Director shall ministerially approve the tentative parcel map without discretionary review or public hearings if the tentative parcel map conforms to the applicable requirements of this chapter and applicable provisions of Article 15 under Chapter 1, Title 10 of this code.

The Community Development Director’s decision shall be final. (c) The expiration and extension of the tentative parcel map shall be in accordance with Section 9-1.519, unless a longer or shorter period is prescribed by applicable state law. (d) All persons submitting maps as required by this article shall pay all fees and/or deposits as provided by the City's resolution establishing fees and charges. (e) A note on the parcel map and a recorded deed restriction in a form approved by the City Attorney’s Office shall be applied to all newly created parcels indicating that the parcel was split using the provision of this article and that no further SB 9 Lot Splits are permitted.
(f) Prior to the recordation of the parcel map, the applicant shall sign and record an affidavit in a form approved by the City Attorney’s Office stating that the applicant intends to reside in one of the proposed or existing primary dwellings or SB 9 Units as defined in Article 15 of Chapter 1, Title 10 of this code for three years from the date of the approval of the subdivision. This requirement shall not apply if the applicant is a community land trust or a qualified nonprofit corporation as provided in Sections 402.1 and 214.15 of the Revenue and Taxation Code.
5410761.4

STUDY SESSION DRAFT
Exhibit C
Additional Changes to the Draft SB 9 Ordinance
The following changes are proposed for the draft SB 9 Permanent Ordinance (Exhibit A). • 10-1.1501 Purpose and Intent.

Clarify SB 9 Lot Split and development projects only apply to single-family residential zoned properties within the Town of Los Altos Hills.

The purpose of this article is to establish objective standards and regulations to govern the development of qualified Senate Bill No. 9 (2021) (“SB 9”) subdivisions and development projects on single-family residential zoned properties within the Town of Los Altos Hills. The establishment of these regulations will result in the orderly subdivision and development of qualified SB 9 projects while ensuring that the new units are consistent with the semi-rural character of the Town and do not create any significant impacts with regards to public infrastructure or public safety. The regulations are established to implement the requirements under California Government Code Sections 65852.21 and 66411.7.
• 10-1.1502 Definitions.

Align definitions of this chapter with Section 10-1.202, except the definition of “primary dwelling.”
Panhandle means the portion of a lot which connects the buildable section of the lot to a public or private vehicular right-of-way.

Pathway means designated pedestrian, equestrian, and/or bicycle routes as shown on the Pathway Master Plan of the Town.
• 10-1.1505 (a)(2)
Further clarify up to two (2) dwelling units are permitted on a new SB 9 Lot. (2) For SB 9 Lots, the following unit types and count shall be permitted:

A. Up to two dwelling units, consisting of existing or proposed (including reconstruction pursuant to Section 10-1.1504(j) of this code) primary or secondary dwellings or SB 9 Units; or
B. Up to two SB 9 Units.

C. New ADUs and JADUs are not permitted on a new SB 9 Lot. • 10-1.1505 (b)
Propose a change that the default maximum floor area for one SB 9 Unit is 1,000 square feet, and any lot is permitted for two (2) 1,000-square-foot SB 9 Units, regardless of the MFA of the lot per the formulas.

The change is intended to align with the Housing Element Program B-10, which allows SB 9 units constructed on newly created SB 9 parcels to have default floor areas greater

STUDY SESSION DRAFT
than 800 square feet. Please note that the maximum size for an SB 9 Unit is 800 square feet, if it deviates from the development standards and requires a waiver from the Community Development Director.
• 10-1.1505 (d)(1)
Modify “pedestrian pathway easements” to “pathway easements” to include “equestrian easement” as defined for “Pathway” in Section 10-1.202
(1) In areas encumbered by a recorded easement, including but not limited to, public utility easements, conservation easements, access easements, pedestrian pathway easements and open space easements;
• 10-1.1505 (g)
Add one additional requirement for one SB 9 unit proposed on a vacant SB 9 Lot. If one SB 9 Unit is proposed on an SB 9 Lot, the maximum size of the unit is the maximum floor area of the lot minus 800 square feet, or 3,000 square feet, whichever is less. • 10-1.1506 (f)(h)
Combine repetitive provisions of 10-1.1506 (f) and (h) and clarify the ten (10)-foot separation requirement only apply to detached dwellings. • 10-1.1506 (g)
Modify the last sentence to prohibit any operable doors within (10) feet of the property line.

Subdivision Ordinance
• 9-1.1602(f)
Modify the timeline to be “for three years from the issuance of an SB 9 dwelling unit’s Certificate of Occupancy.”

TOWN OF LOS ALTOS HILLS August 3, 2023
Staff Report to the Planning Commission
SUBJECT: Review and Recommendation to City Council on Senate Bill 9 (SB 9) Ordinance – Town of Los Altos Hills
Public Hearing to review and make recommendation to the City Council regarding a Zoning Ordinance and Subdivision Ordinance Amendments of the Municipal Code to ministerially review and approve residential development and subdivision projects pursuant to California Senate Bill 9 (SB 9).

FROM: Elaine Ling, Interim Community Development Director RECOMMENDATION: That the Planning Commission take the following actions:

1. Receive the staff report, consider public comments, determine that the proposed action is exempt from the California Environmental Quality Act, and recommend to the City Council introduce an ordinance amending Title 9 (Subdivisions and Plan Lines) and Title 10 (Zoning and Site Development) to adopt regulations pertaining to the ministerial review and approval of residential development and subdivision projects pursuant to California Senate Bill 9.

BACKGROUND
Introduction and Procedural History
Pursuant to duly noticed public hearings, the Town adopted an interim urgency ordinance pursuant to Government Code section 65858 initially on December 16, 2021 and further extended it for an additional twenty two (22) months to establish certain regulations for Senate Bill (SB) 9 units in light of the need for the immediate preservation of the public health, safety and welfare. The urgency ordinance and the regulations therein are currently set to expire in October 2023, unless the Town adopts a permanent ordinance prior to that date.

SB 9 units continue to remain an important part of the Town’s housing strategy to meet its regional housing obligations in conjunction with other programs and policies to facilitate housing supply growth. Adoption of a permanent ordinance would further the Town’s efforts and establish longterm regulations consistent with state law. For instance, the Town’s 2023-2031 Housing Element, adopted by the City Council and certified by the California Department of Housing and Community Development (HCD), incorporates the implementation of a permanent SB 9 Ordinance as a housing program (Program B-10). Among other things, this Program’s strategy proposes to remove affordability requirements established by the interim ordinance and allows SB 9 units to obtain additional floor areas based on the availability of maximum floor area (MFA) for the parcel and/or adherence to standard setbacks and easement dedication requirements as incentives to further promote development.

The Town has continued to work towards adopting a permanent SB 9 Ordinance during this interim period. On October 6, 2022, the Planning Commission formed an ad hoc committee consisting of two commissioners to initiate the ordinance effort and present draft concepts and language for the Planning Commission to consider. On December 12, 2022, and February 15, 2023, the Planning Attachment 3

Planning Commission Page 2
Public Hearing – SB 9 Permanent Ordinance
August 3, 2023
Commission held two (2) SB 9 Ordinance Study Sessions regarding the permanent local ordinance, focusing on a review of the State Legislation, other jurisdictions’ SB 9 ordinances, and the proposed development standards for the permanent ordinance. In addition, surveys were conducted during the meetings to collect initial feedback on providing incentives to SB 9 projects that meet the Town’s development standards.

On February 3, 2023, the Town launched a new SB 9 Information webpage, which can be found via the following link: https://los-altos-hills-ca.civilspace.io/en/projects/senate-bill-9-sb-9. The webpage includes an introduction to the State Legislation and the progress of the local ordinance update.

On July 25, 2023, Planning Commission Study Session on the draft SB 9 Permanent Ordinance was continued to July 27, 2023, due to technical difficulties. At the July 27’s meeting, Planning Commission considered the draft SB 9 Ordinance and provided the directions to staff that are discussed in the staff report and updated in the draft ordinance in Attachment 1.

August 3, 2023 Public Hearing at Planning Commission Meeting As the urgency ordinance expires in October 2023, the Town must adopt a permanent ordinance to be in effect before the expiration date in order to continue enforcing local regulations and avoid a lapse between the urgency ordinance expiration date and the permanent ordinance effective date.

Otherwise, any SB 9 applications submitted during the absence of local regulations are subject to the state law only. A series of public hearings are scheduled and publicly noticed as below for a timely adoption of the permanent ordinance.
• August 3, 2023, Planning Commission Regular Meeting to review and make recommendation on the Permanent Ordinance to the City Council.
• August 17, 2023, City Council Meeting for first reading and consideration of SB 9 Permanent Ordinance at a public hearing.
• If introduced for adoption, September 20, 2023 would be the City Council Regular Meeting for second reading and adoption
• Once adopted, October 20, 2023, the SB 9 Permanent Ordinance would be in effect, which is thirty (30) days from adoption on September 20.

A draft ordinance exhibit containing proposed regulations has been prepared based on ad hoc committee and staff recommendation, as well as directions from the Planning Commission during its July 27, 2023 study session, for the Planning Commission’s review at this meeting.

With the above proposed schedule in mind, it is important for the Planning Commission to be able to make a recommendation at the August 3 public hearing for a recommendation to the City Council in order to timely continue implementing local regulations.

Additional Legislative Developments Regarding SB 9
Staff also wishes to bring to the Commission’s attention recent legislative developments regarding SB 9. In 2023, Senate President pro-Tempore Toni G. Atkins (D-San Diego) introduced Senate Bill 450 to modify and strengthen certain provisions of SB 9 as a part of the legislative efforts to promote the ministerial review process and utilization by applicants and property owners. SB 450

Planning Commission Page 3
Public Hearing – SB 9 Permanent Ordinance
August 3, 2023
passed Senate on May 12, 2023, and is currently with the Assembly for hearing. If adopted as currently proposed, SB 450 would do the following, among other changes:
• Prohibits local governments from imposing objective zoning, subdivision, and design standards that do not apply uniformly to development within the underlying zone. This essentially means that cities may not adopt different regulations for SB 9 developments that do not also apply to developments within the underlying zone the same way. • Require local governments to either approve or deny an application for a new SB 9 unit or lot split within 60 days.
• Provide additional enforcement authority to the California Department of Housing and Community Development’s (HCD) over SB 9 developments.

At this time, SB 450 has yet to be approved by the Legislature and has not been signed into law.

It is uncertain whether any additional changes may be made to the bill as it moves forward in the legislative process. Since SB 450 is not currently governing law, the foregoing information is provided for the Planning Commission’s information only as an update. As with any legislative change, if the bill is approved and signed into law, the Town would likely have to review its permanent SB 9 ordinance to ensure consistency with statutory requirements and make amendments as necessary.

NOTICING/PUBLIC OUTREACH
The Study Session was noticed as a Public Hearing and notice was provided to the public. The public was advised of this Public Hearing in the following ways:
• Public Newspaper – Town Crier – July 19, 2023; Daily Post – July 24, 2023. • Public Posting Places – July 21, 2023
• Town Website: www.losaltoshills.ca.gov – July 20, 2023 • City Manager Weekly newsletter – June 23 and 30, July 7, 14, 21, and 28 As of July 28, 2023, staff has not received any public comments after the July 27 Study Session.

DISCUSSION
Changes Recommended by Planning Commission on the July 27 Study Session • Modify Section 10-1.1504(f) that driveway access for both SB 9 Lots shall be shared unless the new driveways are a minimum of 100 feet apart on separate parcels, consistent with Section 10-1.1506(h) that all dwelling units on the same parcel shall be served by a common driveway.
• Add clarifications to Section 10-1.1504(j) that the existing structure rebuild is done pursuant to the SB 9 ministerial approval process and thus subject to applicable development and design standards.
• Modify the default size of one (1) SB 9 Unit from 1,000 square feet to 900 square feet regardless of MFA calculations in Section 10-1.1505(b) to be consistent with Housing Element Program B-10. As discussed and recommended by staff in the July 27, 2023

Planning Commission Page 4
Public Hearing – SB 9 Permanent Ordinance
August 3, 2023
Study Session, this square footage is proposed so that the default size of an SB 9 unit would be greater than 800 square feet as identified in the Housing Element Program B-10 but less than 1,000 square feet as the Planning Commission had concerns with the proposed size.
• Include a provision stating “the maximum development area (MDA) permitted on the parcel shall be one thousand six hundred (1,600) square feet plus an additional two thousand one hundred (2,100) square feet.” This is currently in the Town’s interim urgency ordinance.
• Clarify Section 10-1.1505(e) that one (1) on-site parking space is required per one (1) SB 9 Unit, and add state law mandated restrictions where no parking can be required (when major transit stop or car share vehicle is close by).
• Remove the incentive of 800 square-foot MFA and 1,200 square-foot MDA for incentivized development standards in Section 10-1.1505(g)(1). • Remove the incentive of 27-foot maximum height for SB 9 Unit for incentivized development standards in Section 10-1.1505(g)(2).
• Remove “bunkers” as an incentive and add the maximum light well size of 60 square feet for each bedroom at the basement level.
• Increase the parking incentives in Section 10-1.1505 (g)(4) for the incentivized development of one (1) SB 9 Unit.

Floor Area Number Forms Setbacks
Under 1000 square feet 1 uncovered Permitted in the
setback areas
1,000 to 1,600 square feet 2 uncovered One permitted in the setback areas, and the
rest outside the 40-
foot front and 30-foot
rear and side setbacks
1,600 to 2,400 square feet 3 uncovered
2,400 to 3,000 square feet 4 Two (2) covered and
two (2) uncovered
• Remove tree lights in 10-1.1506 (m) and (q) to simplify SB 9 development standards. • Modify Section 9-1.1602 (e) to require a note in the deed restriction that the subject SB 9 Lot is permitted for a maximum of two (2) dwelling units.

The foregoing changes are identified in redline Exhibit A to the Ordinance as shown in Attachment 2 to the staff report, for ease of reference.

Planning Commission Page 5
Public Hearing – SB 9 Permanent Ordinance
August 3, 2023
Further Recommendations from Staff
Per the discussion at the July 27 Study Session, staff recommends the following revisions for the Planning Commission’s further consideration.
1) Default Size of One (1) SB 9 Unit
The Town’s Housing Element includes Program B-10 as well as policies to facilitate the development of SB 9 projects to remove governmental constraints so that the Town’s housing policies and programs would achieve substantial compliance with State Housing Element Law. Programs B-10 states the following commitment:“allow(s) SB 9 units constructed on newly created SB 9 parcels to have default floor areas greater than 800 square feet as currently stated in the interim ordinance, and require compliance with the Town’s objective design standards which will be prepared as a part of the permanent ordinance.”
Therefore, for any SB 9 lots, the default maximum size for one (1) SB 9 Unit would need to be greater than 800 square feet regardless of maximum floor area standards to be consistent with Program B-10 in the Town’s Housing Element. Otherwise, if factoring in MFA as currently described in the interim urgency ordinance and only allowing SB 9 units to exceed 800 square feet where additional MFA is available, the default standard for an SB 9 unit would continue to be 800 square feet and be inconsistent with Program B-10.

Considering that the Town’s ADU ordinance allows ADUs, which are secondary dwelling units, to be up to 1,000 square feet while maintaining four-foot side and rear setbacks, staff initially recommended a 1,000 square-foot default size for one (1) SB 9 Unit at the July 27 Study Session. As Planning Commission provided direction expressing concerns with this size figure,, staff proposes a 900-square-foot default size for one (1) SB 9 Unit and recommends the following modifications. Staff believes the 100 square feet increase is a reasonable expansion from 800 square feet (i.e. the size of one bedroom) and would facilitate the utilization of SB 9 development as described in the Housing Element. • The default size of one (1) SB 9 Unit shall be 900 square feet for the baseline development standards.
• For parcels not created through an SB 9 Lot Split, nine hundred (900) eight hundred (800) square feet of floor area and development area for an SB 9 Unit shall be excluded from the maximum floor area and development area calculation. • For SB 9 Lots, the default sizes for one (1) or two (2) SB 9 Units are 900 square feet in floor area, regardless of MFA calculation of the lot. 2) Incentivized Development Standards
The SB 9 state law does not permit the local jurisdiction to require easements except for public services and facilities. In particular, state law specifies that the local jurisdiction shall not impose the right-of-way dedication or offsite improvements as conditions of

Planning Commission Page 6
Public Hearing – SB 9 Permanent Ordinance
August 3, 2023
approval for an SB 9 Lot Split. However, the proposed incentivized development standards are intended to encourage the property owners to voluntarily comply with the site development standards and dedicate their land to the Town, in exchange for valuable development incentives. To make the development incentives valuable and actually encourage applicants to utilize them, staff recommends the Planning Commission reconsider modifying the proposed changes at the July 27 Study Session as follows. • Maintain the 800 square-foot MFA and 1,200 square-foot MDA for incentivized development standards in Section 10-1.1505(g)(1). The additional 400 square-foot MDA would accommodate two (2) parking spaces as required for incentivized development standards.
• Instead of reducing the incentive for maximum height to 16 feet, reduce the incentive of the 27-foot maximum height to 19 feet in Section 10-1.1505(g)(2).

Please note that the maximum height for an ADU located outside of the standard setbacks is 19 feet. Based on the submitted ADU applications in the record, many of the ADUs located outside of the setbacks are 19-feet in height. It appears to be an effective incentive for maintaining the standard setbacks. • Modify the parking requirements in Section (g)(4) for the incentivized development of one (1) SB 9 Unit.

Floor Area Number Forms Setbacks
Under 1000 square feet 1 uncovered Permitted in the
setback areas
1,000 to 2,000 square feet 2 uncovered One permitted in the setback areas, and the
rest outside the 40-
foot front and 30-foot
rear and side setbacks
2,000 to 3,000 square feet 3 One (1) covered, two
(2) uncovered
An alternative option is proposed for the Planning Commission’s consideration as below.

Floor Area Number Forms Setbacks
Under 1000 square feet 1 uncovered Permitted in the
setback areas
1,000 to 1,600 square feet 2 uncovered One permitted in the setback areas, and the
rest outside the 40-
foot front and 30-foot
rear and side setbacks
1,600 to 2,400 square feet 3 uncovered
2,400 to 3,000 square feet 4 Two (2) covered and
two (2) uncovered

Planning Commission Page 7
Public Hearing – SB 9 Permanent Ordinance
August 3, 2023
No more than seven (7) parking spaces, including covered and uncovered, shall be permitted on any lots.

For reference, the table below identifies the parking requirements for the primary dwellings in all jurisdictions of Santa Clara County.

City Number Forms
Cupertino 4 Two covered, two uncovered
Gilroy 2 One covered
Los Altos 2 One covered
Los Gatos 2 uncovered
Milpitas 2-3 uncovered
Monte Sereno 4 Two covered
Morgan Hill 2 Two covered
Mountain View 2 One covered
Palo Alto 2-4 One covered
Santa Clara 2 Two covered
San Jose 0
Saratoga 2 Two covered
Sunnyvale 4 Two covered
County of Santa Clara 2 One covered

NEXT STEPS
After the Planning Commission makes a recommendation on the draft ordinance, staff will bring the proposed ordinance for the City Council’s consideration at the August 17, 2023 City Council meeting for a subsequent public hearing.

ENVIRONMENTAL REVIEW
SB 9 state law exempts local ordinances implementing SB 9 from CEQA requirements. Therefore, CEQA is not applicable and the ordinance is exempt from CEQA.

ATTACHMENTS

1. Resolution and the Ordinance (clean version)

2. Draft Updated SB 9 Permanent Ordinance – redline version.

Ordinance ____ - Exhibit A Page 1

EXHIBIT A
SECTION I. Revisions to Article 5, “Area, Coverage, Height and Setback Limitations” of Chapter 1 of Title 10
Sections 10-1.502 and 10-1.503 are amended as shown as follows, with additions in double underline and deletions in strikethrough. Sections, subsections, paragraphs and texts not modified by this amendment are not included below and shall remain in full force and effect.

Article 5. Area, Coverage, Height and Setback Limitations” . . .
10-1.502 Development area.

Except as provided in subsections (c) and (d) of this section, the amount of development area in square feet allowable on a parcel or lot shall not exceed the amounts determined by application of the formula in subsection (a) of this section where An is net area in acres, S is the average slope of the parcel or lot in percent, as defined in Section 10-1.202, LUF is the lot unit factor as defined by Section 10-1.202 and MDA is the maximum development area allowable. . . .
(6) Development Area Bonus. A development area bonus (five hundred (500) square foot maximum) of one square foot for every one square foot of roof-mounted photovoltaic (PV) power generation facility (solar panels) shall be granted subject to the following requirements:
(i) The development area bonus shall apply only to properties that do not already exceed the maximum development area allowable,
(ii) The roof-mounted PV facility shall be grid tied or connected, (iii) For new residences, the roof-mounted PF facility shall be fully installed and grid connected prior to the final inspection and occupancy of the new residence, (iv) For all other structures and projects, the roof-mounted PV facility shall first be installed with a building permit and receive satisfactory final inspection prior to granting of the development area bonus,
(v) The development area bonus shall only be used for projects that otherwise comply with all other zoning and site development ordinances,
(vi) The maximum allowable development area bonus shall be reduced by one square foot for every one square foot of ground-mounted PV system over five hundred (500) square feet that is exempted from development area requirements by action of the Planning Commission, (vii) Any development area bonus request may be referred to the Planning Commission by the Planning Director Community Development Director. A development area bonus request for a property of less than one net acre in size shall be subject to Planning Commission review and decision,
(viii) Sunset Provision. This section shall expire on July 31, 2016.

Ordinance ____ - Exhibit A Page 2
(ix) The Planning Director Community Development Director shall provide the City Council with an annual report that evaluates the effectiveness of this subsection as an incentive for increasing PV system installations;
(7) Photovoltaic Power Generation Facilities. Photovoltaic power generation facilities that are connected to the grid and that are five hundred (500) square feet or less are exempt from the requirements of this section. Photovoltaic power generation facilities greater than five hundred (500) square feet in area are subject to the requirements of this section, unless the Planning Commission determines that the off-site visual impacts of the facility are adequately mitigated. (c) Minimum MDA. The allowable development area on any parcel or lot shall not be reduced to less than seven thousand five hundred (7,500) square feet by application of the provisions of this section, except as set forth in Section 10-1.502(e) or except in the case of parcels or lots which have a lot unit factor of 0.50 or less. Parcels or lots which have a lot unit factor of 0.50 or less require a Conditional Development Permit and development area may be restricted below seven thousand five hundred (7,500) square feet as a condition of the permit. Maximum development area for lots which require a Conditional Development Permit shall be established as the maximum floor area allowed by Section 10-1.503(c), plus two thousand one hundred (2,100) square feet. The Site Development Authority may approve development area of up to a total of four thousand five hundred (4,500) square feet for any lot or parcel without requiring a variance, so long as the findings for a Conditional Development Permit are made. Notwithstanding the foregoing, this subsection (c) shall not apply to any parcel that has a LUF less than 1.0 and was created after the enabling date of the ordinance implementing this sentence. . . .
10-1.503 Floor area.
. . .
(c) Minimum MFA. The allowable floor area on any parcel or lot shall not be reduced to less than five thousand (5,000) square feet by application of the provisions of this section, except as set forth in subsection (e) of this section or except in the case of parcels or lots which have a lot unit factor of 0.50 or less. Parcels or lots which have a lot unit factor of 0.50 or less require a Conditional Development Permit and floor area may be restricted below five thousand (5,000) square feet as a condition of the permit. Maximum floor area for lots which require a Conditional Development Permit shall be established as the ratio of the lot unit factor (LUF) for the lot divided by 0.50 times five thousand (5,000) square feet. The Site Development Authority may approve floor area of up to two thousand five hundred (2,500) square feet for any lot without requiring a variance, so long as the findings for a Conditional Development Permit are made. Notwithstanding the foregoing, this subsection (c) shall not apply to any parcel that has a LUF less than 1.0 and was created after the enabling date of the ordinance implementing this sentence. . . .

Ordinance ____ - Exhibit A Page 3
SECTION II. Revisions to Article 15, “Objective Standards for Qualified Senate Bill 9 Subdivisions and Development Projects” of Chapter 1 of Title 10 Article 15 of Chapter 1 of Title 10 is amended in its entirety and restated as follows. Articles, sections, subsections, paragraphs and texts not modified by this amendment are not included below and shall remain in full force and effect.

Article 15. Objective Standards for Qualified Senate Bill 9 Lot Splits and Development Projects
10-1.1501 Purpose and Intent.

The purpose of this article is to establish objective standards and regulations to govern the development of qualified Senate Bill No. 9 (2021) (“SB 9”) subdivisions and development projects on single family residential zoned properties within the Town of Los Altos Hills. The establishment of these regulations will result in the orderly subdivision and development of qualified SB 9 projects while ensuring that the new units are consistent with the semi-rural character of the Town and do not create any significant impacts with regards to public infrastructure or public safety. The regulations are established to implement the requirements under California Government Code Sections 65852.21 and 66411.7. 10-1.1502 Definitions.

For purposes of this article, the following definitions apply:
(a) Adjacent parcel means any parcel of land that (1) adjoins another parcel by any portion of a shared property line; (2) is separated from another parcel at any point only by a public right-of-way, ingress-egress easement, or public or private easement; or (3) is separated from another parcel only by other real property which in common ownership or control of the same owner or development project applicant.
(b) Accessory dwelling unit or ADU, means an attached or a detached residential dwelling unit as defined by Section 10-1.1402 of this code.
(c) Dwelling unit or Dwelling means an ADU, JADU, a primary dwelling, and an SB 9 Unit, as applicable.
(d) Junior accessory dwelling unit or JADU, or “efficiency unit”, means a dwelling unit as defined by Section 10-1.1402 of this code.
(e) Conservation Easement means restrictive covenants that run with the land and bind upon successive owners that protects against future development such as preservation of open space, scenic, riparian, historical, agricultural, forested, or similar conditions. Open space and riparian easements are included in this definition. (f) Existing dwelling means a primary dwelling or other dwelling unit on a parcel that exists prior to any voluntary demolition or reconstruction or remodel where no more than 50% of the exterior wall framing has been removed or altered. Any existing dwelling unit where more than 50% of the exterior wall framing has been removed is considered a new dwelling for purposes of this article.

Ordinance ____ - Exhibit A Page 4
(g) Panhandle means the portion of a lot which connects the buildable section of the lot to a public or private vehicular right-of-way.
(h) Pathway means designated pedestrian, equestrian, and/or bicycle routes as shown on the Pathway Master Plan of the Town.
(i) Primary dwelling means a building as defined in Section 10-1.202 and is reviewed and entitled as a single-family residence pursuant to the provisions of Article 3, Chapter 2 of Title 10 of this code.
(j) Private Road means a road, way, or street in private ownership and under private maintenance, not offered for dedication as a public road, way, place, or street, which affords the principal means of access to three or more lots or parcels which do not have frontage on a public street.
(k) SB 9 Lot Split means a subdivision of an existing parcel to create up to two (2) new parcels using the provision in this article, Article 16 of Chapter 1 of Title 9 of this code, and the provisions identified in California Government Code Sections 65852.21 and 66411.7.
(l) SB 9 Lot means single-family residential lots created from an SB 9 Lot Split. (m) SB 9 Dwelling Unit or SB 9 Unit means a dwelling unit that seeks to use or is developed using the provisions in this article and the provisions identified in California Government Code Sections 65852.21 and 66411.7.
10-1.1503 SB 9 Lot Split Eligibility.

Any parcel within the Residential-Agricultural (R-A) zoning district meeting the requirement of this article and Article 16 of Chapter 1, Title 9 of this code is eligible for SB 9 Lot Split, except under the following circumstances:
(a) Any parcel that was established through a prior exercise of SB 9 Lot Split as provided for in this article.
(b) Any parcel proposing to be subdivided that is adjacent to another parcel where either the owner of the parcel proposing to be subdivided or any person acting in concert with said owner has previously subdivided that adjacent parcel using the provisions in this article.

For the purposes of this article, “any person acting in concert” with the owners includes, but is not limited to, an individual or entity operating on behalf of, acting jointly with, or in partnership or another form of cooperative relationship with, the property owner. (c) Any parcel located within an historic district or included on the State Historic Resources Inventory, as defined in Section 5020.1 of the Public Resources Code, or a parcel within a site that is designated or listed as a Town of Los Altos Hills or Santa Clara County landmark or historic property or district pursuant to a Town of Los Altos Hills or Santa Clara County ordinance.
(d) Any parcel where SB 9 Lot Split would require the demolition or alteration of any of the following types of housing:
(1) Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income.

Ordinance ____ - Exhibit A Page 5
(2) Housing that is subject to any form of rent or price control through a public entity's valid exercise of its police power.
(3) A parcel or parcels on which an owner of residential real property has exercised the owner's rights under Government Code section 7060 et seq. to withdraw accommodations from rent or lease within 15 years before the date that the development proponent submits an application.
(4) Housing that has been occupied by a tenant in the last three years. (e) Any parcel fully encumbered with a conservation easement or identified for conservation in an adopted natural community conservation plan pursuant to the Natural Community Conservation Planning Act (Chapter 10 (commencing with Section 2800) of Division 3 of the Fish and Game Code), habitat conservation plan pursuant to the federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.), or other adopted natural resource protection plan.
(f) Any parcel that is designated prime farmland or farmland of statewide importance, as defined pursuant to United States Department of Agriculture land inventory and monitoring criteria, as modified for California, and designated on the maps prepared by the Farmland Mapping and Monitoring Program of the Department of Conservation, or land zoned or designated for agricultural protection or preservation by a local ballot measure.
(g) Any parcel containing wetlands, as defined in the United States Fish and Wildlife Service Manual, Part 660 FW 2 (June 21, 1993), that would prevent the development of the parcel.
(h) Any parcel within a very high fire hazard severity zone, as determined by the Department of Forestry and Fire Protection pursuant to Government Code Section 51178, or within a high or very high fire hazard severity zone as indicated on maps adopted by the Department of Forestry and Fire Protection pursuant to Section 4202 of the Public Resources Code. This subsection does not apply to parcels that have been excluded from specific hazard zones by actions of the Town pursuant to Government Code section 51179(b), or parcels that have adopted fire hazard mitigation measures pursuant to existing building standards or state fire mitigation measures applicable to the development.
(i) Any parcel with a hazardous waste site that is listed pursuant to Government Code Section 65962.5 or a hazardous waste site designated by the Department of Toxic Substances Control pursuant to Section 25356 of the Health and Safety Code, unless the State Department of Public Health, State Water Resources Control Board, or Department of Toxic Substances Control has cleared the site for residential use or residential mixed uses.
(j) Any parcel within a special flood hazard area subject to inundation by the 1 percent annual chance flood (100-year flood) as determined by the Federal Emergency Management Agency (FEMA) in any official maps published by the FEMA. However, a SB 9 Lot Split and/or development project may be located on a parcel described in this subsection if (1) the parcel is otherwise eligible for approval under the provisions of this

Ordinance ____ - Exhibit A Page 6
article and (2) the project applicant is able to satisfy all applicable federal qualifying criteria demonstrating either of the following are met:
(1) The site has been subject to a Letter of Map Revision prepared by the FEMA and issued to the Town.
(2) The site meets FEMA requirements necessary to meet minimum flood plain management criteria of the National Flood Insurance Program pursuant to Part 59 (commencing with Section 59.1) and Part 60 (commencing with Section 60.1) of Subchapter B of Chapter I of Title 44 of the Code of Federal Regulations. (k) Any parcel within a regulatory floodway as determined by the FEMA in any official maps published by the FEMA, unless the SB 9 Lot Split and/or development project has received a no-rise certification in accordance with Section 60.3(d)(3) of Title 44 of the Code of Federal Regulations.
(l) Any parcel containing habitat for protected species identified as candidate, sensitive, or species of special status by state or federal agencies, fully protected species, or species protected by the federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.), the California Endangered Species Act (Chapter 1.5 (commencing with Section 2050) of Division 3 of the Fish and Game Code), or the Native Plant Protection Act (Chapter 10 (commencing with Section 1900) of Division 2 of the Fish and Game Code). 10-1.1504 Objective Development Standards for SB 9 Lot Splits.

The following objective standards and regulations apply to all SB 9 Lot Splits:
(a) The subdivision shall create no more than two new parcels of approximately equal area provided that one parcel shall not be smaller than 40 percent of the lot area of the original parcel proposed for subdivision. In no instance shall any resulting parcel be smaller than 1,200 square feet in area.
(b) Where noted, the requirements of this Section 10-1.1504 shall be waived by the Community Development Director if the applicable regulation at issue would physically preclude the construction of two SB 9 Units on either resulting parcel or would result in an SB 9 Unit from being less than eight hundred (800) square feet in floor area. All such waivers made by the Community Development Director shall be final. (c) No more than two (2) dwellings shall be permitted on a new parcel created through an SB 9 Lot Split. For the purposes of this subsection, “dwelling unit” means a primary dwelling, an SB 9 Unit, an Accessory Dwelling Unit or Junior Accessory Dwelling Unit. (d) Existing parcels shall be split approximately perpendicular to the longest contiguous property line. Resulting lots shall have a maximum depth to width ratio of three-to-one (3:1). However, this requirement shall be waived if the subdivider demonstrates that it would prohibit an SB 9 Lot Split that otherwise meets the requirements of this article. (e) The front parcel line of any newly created parcel shall be the parcel line that is closest to or parallel to the public or private road that serves the parcel. (f) A 20-foot-wide panhandle (for a flag lot) or an ingress/egress easement shall be provided for all new parcels that do not have direct frontage on a public or private road. Driveway

Ordinance ____ - Exhibit A Page 7
access to the new parcels shall be shared as identified in Figure 1, 2, and 3, unless the new driveways are a minimum of 100 feet apart. No more than one (1) driveway cut is permitted for each parcel.

Figure 1 Figure 2 Figure 3
(g) Easements for access and public and private utilities shall be provided for any newly created parcel that does not front on a public or private street. (h) Separate utility meters shall be provided for each parcel prior to recordation. (i) All newly created parcels shall be connected to public sewer or provide a private onsite wastewater treatment system (OWTS) that is fully contained within the new parcel boundaries to be approved by the Santa Clara County Environmental Health Department. (j) No setbacks shall be required for an existing structure on the parcel from a proposed parcel line.

For the purposes of this article, existing dwelling units or accessory structures may be demolished and reconstructed as new units pursuant to the ministerial approval process of this article to the same or lesser massing and dimensions of the previously existing dwelling or accessory structure at the same location and within the same building footprint. Roof decks and balconies are permitted if reconstructed in the same location and orientation. However, in no event shall any reconstruction increase the height, floor area, development area, or setbacks of the prior existing dwelling or structure. (k) In the event that an applicant desires to demolish and reconstruct an existing dwelling unit or accessory structure, the applicant shall apply for a demolition permit with the Town concurrently or after submitting an application pursuant to this article, and shall submit with the demolition permit application a pre-demolition survey prepared by a licensed surveyor or civil engineer and as-built plans and elevations of the existing dwelling or structure prepared by a licensed architect. All other accessory structures that are not primary or secondary dwellings shall be reviewed by the applicable hearing body pursuant to pursuant to the provisions of Article 3, Chapter 2 of Title 10 of this code. (l) An SB 9 Lot Split is subject to all impact or development fees related to the creation of a new parcel pursuant to Title 9 of this code and any applicable fee schedules adopted by the City Council and most currently in effect.
10-1.1505 Objective Development Standards for SB 9 Units.

The following objective standards and regulations apply to the development of SB 9 Units:
(a) Number of Units Permitted.
(1) For parcels not created through an SB 9 Lot Split, the following unit types and count shall be permitted on one parcel:

Ordinance ____ - Exhibit A Page 8
A. a primary dwelling and an SB 9 unit (or two SB 9 units); B. ADU as provided by Article 14 of Title 10 of this code; and C. a JADU as provided by Article 14 of Title 10 of this code. (2) For parcels created through an SB 9 Lot Split, the following unit types and count shall be permitted:

A. Up to two dwelling units, consisting of existing or proposed (including reconstruction pursuant to Section 10-1.1504(j) of this code) primary dwellings or SB 9 Units; or
B. Up to two SB 9 Units.

C. No ADUs and JADUs are permitted.
(b) Unit Size and Construction. Notwithstanding Article 5, Chapter 1 of this code, the maximum floor area (MFA) permitted on a parcel for the development of SB 9 Units shall be nine hundred (900) square feet. The MFA for an SB 9 Unit shall be one nine hundred (900) square feet, and the maximum height shall be sixteen (16) feet. No basement, bunker, or roof deck shall be permitted. For parcels not created through an SB 9 Lot Split, eight hundred (800) square feet of floor area and development area for an SB 9 Unit shall be excluded from the maximum floor area and development area calculation through the lot unit fact (LUF) as defined under Section 10-1.202 for the underlying parcel pursuant to Article 5, Chapter 1 of this code.
(c) Setbacks. The minimum front yard setback for any new SB 9 dwelling unit shall be 40 feet measured from any point of the architecture extrusions, including roof eaves and permanent wall features to the front parcel line or a public or private road right-of-way and four (4) feet from the side and rear parcel lines. In addition, all outdoor patios, covered patios, decks, and other hardscape, except walkways as defined in Section 10-

1.202, shall meet the standard 40-foot front and 30-foot side and rear setbacks as set forth under Section 10-1.505. Notwithstanding the foregoing, no setback shall be required for a dwelling unit proposed pursuant to this article that is constructed in the same location and to the same dimensions as an existing structure on the parcel in accordance with Section 10-1.1504(j).
(d) Structures shall not be located in the following locations:
(1) In areas encumbered by a recorded easement, including but not limited to, public utility easements, conservation easements, access easements, equestrian easements, general public easements, pathway easements, and open space easements; (2) In areas within twenty-five (25) feet of the top of a creek bank; (3) Within 10 feet of a parcel line where a pathway is designated on the adopted Master Path Plan for the Town of Los Altos Hills.
(4) Areas with slopes greater than thirty percent (30%). (e) Required Parking. One on-site parking space is required per SB 9 Unit as follows:
(1) The parking space may be covered or uncovered and shall be at least ten (10) feet wide by twenty (20) feet deep.

Ordinance ____ - Exhibit A Page 9
(2) The space may be provided as tandem parking on a driveway or located in a setback area, unless specific findings are made by the Community Development Director that parking in a setback area or as tandem is not feasible based upon specific site or regional topographical or fire and life safety conditions. (3) The parking space shall not encroach into a required fire truck turnaround or obstruct the driveway access to the primary dwelling.
(4) However, no parking shall be required in either of the following circumstances:

A. The parcel is located within one-half mile walking distance of either a highquality transit corridor, as defined in subdivision (b) of Section 21155 of the Public Resources Code, or a major transit stop, as defined in Section 21064.3 of the Public Resources Code.

B. There is a car share vehicle located within one block of the parcel. (f) Heritage Oak Tree Removal. If an SB 9 Unit development project proposes to remove, or damages in the course of construction, a heritage oak tree, the applicant shall be required to provide replacement trees in accordance with the following:

For a heritage oak tree between 12-18 inches in trunk diameter: replacement of two (2) 24-inch box California native oak trees.

For a heritage oak tree between 18-24 inches in trunk diameter: replacement of three (3) 24-inch box California native oak trees.

For a heritage oak tree greater than 24 inches in trunk diameter: replacement of four (4) 24-inch box California native oak trees.
(g) Development Incentives for SB 9 Units on Parcels Meeting Certain Requirements.

If an SB 9 Unit is proposed to be constructed to meet the 40-foot front and 30-foot side and rear setbacks as set forth under Section 10-1.505, and if the applicant or property owner proposes to dedicate to the Town all of the following as applicable: (i) for any parcel, a public right-of-way interest pursuant to Section 9-1.703; (ii) for a parcel with a slope equal to or exceeds thirty percent (30%), an open space easement covering the entire sloped area (iii) for a parcel containing a creek identified in the General Plan, an open space easement providing at least a twenty-five (25) feet buffer zone from the top of the creek bank; or (iv) for a parcel with a proposed pathway identified on the Town’s Pathway Master Plan, a pathway easement of at least ten (10) feet in width covering the identified pathway segment, then any SB 9 Unit constructed on the parcel shall receive the following development incentives:
(1) The maximum floor area (MFA) and maximum development area (MDA) permitted on the parcel shall be calculated in accordance with the requirements of the underlying zoning district per Sections 10-1.502 and 10-1.503. Of said MFA permitted, three thousand (3,000) square feet shall be available for the development of SB 9 Units, and that eight hundred (800) square feet of additional floor area and development area beyond the MFA/MDA is permitted for an ADU pursuant to Article 14 of Title 10 of this code.
(2) The maximum height of an SB 9 Unit shall be sixteen (16) feet.

Ordinance ____ - Exhibit A Page 10
(3) A basement shall be permitted for SB 9 Units subject to the requirements of Section 10-1.202 and the setback requirements under Section 10-1.505, which shall also apply to any light wells and roof eaves.
(4) Required Parking for an SB 9 Unit shall be permitted as follows, based on the proposed floor area of said unit. All parking spaces shall be at least ten (10) feet wide by twenty (20) feet deep.

Floor Area Number Forms Setbacks
Under 1000 square feet 1 uncovered Permitted in the
Setback areas
1,000 to 1,600 square feet 2 uncovered One space may be located in the
Setback areas, all
other spaces shall
be outside the 40-
foot front and 30-
foot rear and side
setbacks
1,600 to 2,400 square feet 3 uncovered
2,400 to 3,000 square feet 4 2 covered
2 uncovered
(h) Driveways and Access. All dwelling units on a parcel shall be served by a common driveway from the nearest public or private street. Driveway access to all new units shall be compliant with the Santa Clara County Fire Department standard details and specifications for driveways and turnarounds.
(i) Sewer Connection. All newly created dwelling units shall be connected to public sewer or provide an onsite wastewater treatment system (OWTS) approved by the Santa Clara County Department of Environmental Health.
(j) Occupancy Requirements. An SB 9 Unit may be rented separately from the primary dwelling unit. However, no SB 9 Unit shall be rented for a period of less than thirty-one (31) days and cannot be occupied as a short-term rental unit, as defined under section 10-

1.1202.
(k) Development projects pursuant to this article shall be subject to all impact or development fees related to the development of a new dwelling unit. (l) Notwithstanding the foregoing, no housing development project shall be permitted on a site pursuant to this article if the underlying parcel falls within any provision under Section 10-1.1503 (c) through (l).
(m) Where noted, the requirements of this section 10-1.1505 except for the requirement under subsection (d)(1) above shall be waived by the Community Development Director if the applicable regulation at issue would physically preclude the construction of two SB 9 Units on the parcel or would result in an SB 9 Unit from being less than (800) square feet in floor area. All such waivers made by the Community Development Director shall be final.

Ordinance ____ - Exhibit A Page 11
10-1.1506 Objective building and design requirements for SB 9 Units.

All SB 9 Units shall be reviewed and approved without discretionary review or public hearing. As part of the Planning Department’s ministerial approval, the following requirements shall be confirmed for SB 9 Unit developments and construction:
(a) All SB 9 Units shall comply with applicable requirements of the California Building Standards Code including but not limited to the Residential Code and the Fire Code. (b) Proposed grading for SB 9 Unit development and associated site improvements shall not exceed the vertical cuts and fills thresholds listed as below:

Cut Fill
House and Garage 8’ 3’
Driveway 10’ 5’
Fire Truck Turnaround 7’ 5’
Patio and Yards 4’ 3’
(c) No site grading shall be permitted within ten (10) feet of any property line and public or private road right-of-way easements, except such grading is permitted for the construction of pathways; to allow access for driveways where they cross a property line; within a panhandle; or for the construction of an SB 9 Unit within five (5) feet of the building footprint within the parcel.
(d) The height of lowest finished floor(s) of a structure shall not be set in excess of four feet six inches (4’-6”) above the existing grade, to assure that structures step with the slope.

Supported decks shall not exceed three (3) feet above adjoining grade except where located within six (6) feet of an exterior wall of a building. (e) For detached units proposed or expanded to be greater than nine hundred (900) square feet in floor area, the exterior materials and design shall match the design of any existing primary dwelling unit on the parcel through the use of the same exterior wall materials, identified color tones, window types, door and window trims, roofing materials and roof pitch.
(f) For an attached unit, the exterior materials, windows and other architectural features shall match the existing structure by employing the same building form, color tones, window design, door and window trims, roofing materials and roof pitch. (g) Detached units shall maintain no less than ten (10)-foot separation, inclusive of eaves, measured from the exterior walls.
(h) All operable doors, outdoor steps, landings, railings, HVAC equipment attached to a dwelling, propane tanks, generators, water collection tanks, hardscape, storage for trash receptacles, above-ground backflow preventer valves and temporary construction equipment shall be located at least ten (10) feet away from any property line. Operable doors shall not be located within ten (10) feet of the property line.

Ordinance ____ - Exhibit A Page 12
(i) No exterior entrance shall face the rear or side property lines if the distance is less than thirty (30) feet between the entrance and the property line that the entrance faces. (j) Windows shall not occupy more than 33% of any façade of an SB 9 Unit. Prior to issuance of certificate of occupancy, windows shall install “privacy glass” if the distance between the windows and the property line is less than ten (10) feet. However, privacy glass shall not be required if a window is situated six (6) feet or higher measured from the finish floor to the bottom of windowsills.
(k) Exterior wall colors and materials shall have a light reflectivity value (LRV) of 50 or less and roof materials shall have a light reflectivity value (LRV) of 40 or less. All metal roofs shall conform to a color specified in Exhibit A of the Metal Roofing Policy approved by the Planning Commission and most currently in effect.
(l) Exterior building lighting shall be fully shielded and downward facing and limited to one exterior light fixture per exterior doorway, or the minimum necessary to comply with the California Building Standards Code.
(m) The following lighting features are permitted. Light emission and color temperatures of any light bulbs used hall be limited as follows:

Maximum Light
Emission (Lumens, Φv)
Maximum Color Temperature
(Kelvin, K)
Path Lights 200 2700
Step Lights 110 2700
Exterior Wall Scones 600 3000
Recessed Ceiling Lights 600 3000
Pendant Lights 600 3000
Gate Lights 600 3000
Temporary Construction
Lighting
500 3000
(n) Recessed lights and downlights shall not be installed in second floor roof eaves. Such lights in first floor eaves shall be located over entryways, garage doors, and patio doorways only. Recessed lights and downlights in first floor roof eaves shall be positioned so that the light cone does not shine down into a neighboring property. No lighting shall be placed at or near the peak of the roof line of a one- or two-story gabled roof.
(o) Pathway and driveway lighting shall be fully shielded fixtures, directed downward and no taller than 18 inches. The spacing between pathway lights shall be 20 feet on center.

Ordinance ____ - Exhibit A Page 13
(p) Garage door windows, panels, or other opening shall not emit light more than 30% of the door’s surface area. The emitting light shall be translucent, allowing no more than 30% of the interior light emission to pass through to the outside. (q) Notwithstanding subsection (l) above, the following outdoor lighting are prohibited:
(1) Any light beams that emits or stretches beyond the aerial space defined by the property lines.
(2) Up-lighting of any kind.
(3) Wall wash lighting of exterior walls.
(4) Visible LED lighting strips, tape lights, and bistro lights. (5) Bistro lights, pendant lights, and any similar lighting fixtures hung down from or hung amongst trees.
(6) Only two landscape lights shall be permitted to locate within the 30- and 40-foot setback areas.
(r) All SB 9 Units are required to have fire sprinklers. A solid (no openings) one-hour fire wall shall be required between an SB 9 Unit, the primary dwelling, an ADU, or any two units configured as a duplex on a parcel. No internal accesses are permitted between the SB 9 Units and other dwelling units. In addition, a deed restriction in a form approved by the City Attorney’s Office shall be recorded stipulating that the duplex shall be maintained as two (2) separate units.
(s) For the purposes of identifying a heritage oak as defined in Section 12-2101 of this code, an arborist report prepared by an International Society of Arboriculture (ISA) certified arborist shall be submitted by the applicant if construction is proposed within the driplines of any trees with trunk diameters of twelve (12) inches or greater to be preserved. (t) No roof decks are permitted on SB 9 dwelling units. A hedge, consisting of 15-gallon minimum evergreen shrubs and at a minimum four (4) feet in height, shall be planted inside the parcel line (and outside of any recorded easement area) at six (6)-foot intervals adjacent to the wall of the SB 9 dwelling unit located closer than ten (10) feet from the side and rear property lines.
(u) A Water Efficient Landscape Ordinance (WELO) Worksheet of the Town shall be submitted by the applicant for any proposed landscape associated with SB 9 Units. The applicant shall furnish to the Town a Landscape Maintenance and Water Usage Deposit in the amount based on the Town’s adopted fee schedule most currently in effect. For two years after completion of the project, Town staff shall review water usage for the parcel and conduct a site inspection to ensure any installed landscape features and screening remains in existence and continues to be adequately maintained. The deposit shall be applied towards remedying insufficient or removed landscape screening or water usage greater than the annual usage indicated on the approved parcel water budget worksheet. (v) All electrical and utility services to a new dwelling unit shall be undergrounded. (w) Notwithstanding the foregoing subsections, any development or design standards that would physically preclude the construction of up to two SB 9 Units on the parcel or that would physically precludes an SB 9 dwelling unit from being eight hundred (800) square

Ordinance ____ - Exhibit A Page 14
feet in floor area shall be waived by the Community Development Director. All such waivers made by the Community Development Director shall be final. 10-1.1508 Adoption of Fees and Charges.

The City Council may establish and set by resolution all fees and charges, consistent with Government Code sections 65852.2 and 65852.22, and related provisions, as may be necessary to effectuate the purpose of this article.

Ordinance ____ - Exhibit A Page 15
SECTION III. Revisions to Chapter 1 “Subdivisions” of Title 9 Addition of Article 16. A new Article 16, entitled “SB 9 Lot Splits”, is hereby added to Chapter 1 of Title 9 and shown in its entirety as follows.

Article 16. Senate Bill 9 Lot Split
9-1.1601 Application Materials for SB 9 Lot Splits. A subdivider seeking an SB 9 Lot Split as defined in Article 15 of Chapter 1, Title 10 of this code shall file a tentative parcel map and a parcel map, an SB 9 Lot Split Application established by the Town containing the information set forth in this section to the Planning Department for review. Submittals shall be accompanied by the required fees and deposits as prescribed by resolution of the City Council. (a) Application and Billing Agreement signed by all parties holding an ownership interest in any properties which are the subject of the proposed subdivision. (b) Numbered Tract Map, Parcel Map, or Certificate of Compliance to demonstrate the lot legality, pursuant to Section 9-1.318.
(c) Preliminary title report within the past six (6) months. (d) Topographic survey. Minimum contour interval is five (5) feet when the average slope exceeds 10% and two (2) feet when the average slope is less than 10%. (e) Preliminary approval of the percolation test from the Santa Clara County Department of Environmental Health, if the parcels must connect to onsite wastewater treatment systems (OWTS).
(f) A tentative Parcel Map containing the following information:
(1) Date, north arrow, scale, sufficient description to define the location, boundaries of the proposed tract and contour intervals, all located in the lower right-hand corner of the map.
(2) Adjacent properties on all sides of the proposed SB 9 Lot Split, including those separated by a public or private right-of-way, with information of the last name of owner or owners, Assessor Parcel Numbers, topographic features, and all improvements.
(3) The names, addresses, and telephone numbers of the recorded owners, subdivider, and State of California registered civil engineer or State-licensed land surveyor who prepared the preliminary map. The registered civil engineer or licensed land surveyor shall include his or her valid stamp, number, and signature; (4) Locations, names, widths, centerline radii, and centerline grades of all streets, roads, and rights-of-way in the proposed subdivision with typical cross-sections showing proposed improvements. Centerline grades shall be shown by a profile, preferably referred to mean sea level datum as established by the United States Geological Survey, or to Town approved bench marks established by the City Engineer. Cross-sections shall be presented as required by the City Engineer;

Ordinance ____ - Exhibit A Page 16
(5) Gross and net acreage of each individual lot to the nearest one hundredth of an acre which may be based on the calculation of the gross and net acreage of the entire parcel;
(6) A number for each lot, dimensions of the lots, including frontage, depth, width, and gross and net area of each lot to the nearest hundredth of an acre; and (7) The location of any existing and/or proposed easements, including easements for conservation purposes, Open Space Easements and Pathway Easements. (g) A form prepared and signed by the registered civil engineer, or licensed land surveyor who prepared the Parcel Map setting forth the average slope, Lot Unit Factor (LUF) and slope density calculations for the original lot and for each new parcel; (h) Location, width, and character of all existing and proposed easements for drainage, water, sewage, public utilities, together with the location and approximate dimensions of any existing buildings and structures, driveways, pools, hardscape, retaining walls, septic tanks, leach fields, wells, active or abandoned, and proposed disposition; (i) Approximate location and direction of flow of all creeks, streams, and other watercourses and drainages, showing type of existing top-of-banks and creek depths, with a separate sheet showing cross-sections of all such creeks, streams, and watercourses, when such streams, creeks or other watercourses are three (3) feet in depth and/or the width is four (4) feet or more at the bed of the stream, creek, or other watercourse; (j) Location and building footprint of the existing structures identified by type. Structures to be removed shall be so marked.
(k) Location of all trees with trunks equal to or greater than twelve (12) inches in diameter.

Trees in concentrated areas shall be approximately marked on the map with a corresponding legend indicator. The trees proposed to be removed shall be identified on the tentative Parcel Map.
(l) Proposed or required Green Infrastructure;
(m) Conceptual grading design with the proposed contours at two (2)-foot intervals minimum if the existing ground slope is less than 10 percent, or at five (5)-foot intervals minimum if the existing ground slope is 10 percent or more.
(n) Conceptual drainage design show how runoff of surface waters from individual lots will be achieved and the ultimate disposal of all subdivision surface waters. (o) Approximate distance, size and location of the nearest existing sanitary sewer main line; Or the septic system locations on the proposed parcels, if the parcel proposes to connect to onsite wastewater treatment systems (OWTS).
(p) Source of domestic water supply.
(m) Fire protection system and design as required by the Los Altos Hills County Fire Protection District.
9-1.1602 Review and Approval of SB 9 Lot Splits.
(a) SB 9 Lot Splits shall be reviewed for conformance with the standards and requirements under Article 15 of Chapter 1, Title 10 of this code.

Ordinance ____ - Exhibit A Page 17
(b) Upon completion of review and preparation of conditions of approval authorized by this chapter by the Planning Department, the Community Development Director shall ministerially approve the tentative parcel map without discretionary review or public hearings if the tentative parcel map conforms to the applicable requirements of this chapter and applicable provisions of Article 15 under Chapter 1, Title 10 of this code.

The Community Development Director’s decision shall be final. (c) The expiration and extension of the tentative parcel map shall be in accordance with Section 9-1.519, unless a longer or shorter period is prescribed by applicable state law. (d) All persons submitting maps as required by this article shall pay all fees and/or deposits as provided by the City's resolution establishing fees and charges. (e) A note on the parcel map and a recorded deed restriction in a form approved by the City Attorney’s Office shall be applied to all newly created parcels indicating that the parcel was split using the provision of this article and that no further SB 9 Lot Splits are permitted. The deed restriction shall also identify that the parcel shall be used for residential uses only and that it is subject to the requirements of Section 10-1.1505(a)(2) and Sections 10-1.502 and 503 of Article 15 of Chapter 1 of Title 10 of this code. (f) Prior to the recordation of the parcel map, the applicant shall sign and record an affidavit in a form approved by the City Attorney’s Office stating that the applicant intends to reside in one of the proposed or existing primary dwellings or SB 9 Units as defined in Article 15 of Chapter 1, Title 10 of this code for three years from the date of the approval of the subdivision. This requirement shall not apply if the applicant is a community land trust or a qualified nonprofit corporation as provided in Sections 402.1 and 214.15 of the Revenue and Taxation Code.
5410761.4

AUGUST 3 DRAFT
Exhibit C
Additional Changes to the Draft SB 9 Ordinance
The following clarifying changes are added (shown in redline) to the draft Ordinance Exhibit A (Attachment 1), to reflect the recommendations from Planning/City Attorney staff and the Planning Commission ad hoc committee. A brief explanation of the clarifications is also included below.
• 10-1.1505 (b)
Propose a change that the default maximum floor area for one SB 9 Unit is 1,000 square feet if meeting the four-foot rear and side setbacks. Nine hundred (900) square-foot floor area and development area are exempt from MFA and MDA calculation for SB 9 units on non-SB 9 Split Lots. SB 9 Lots are permitted for two (2) 900-square-foot SB 9 Units, regardless of the MFA of the lot per the formulas.

The change is intended to align with the Housing Element Program B-10, which allows SB 9 units constructed on newly created SB 9 parcels to have default floor areas greater than 800 square feet. Please note that the maximum size for an SB 9 Unit is 800 square feet, if it deviates from the development standards and requires a waiver from the Community Development Director. In addition, the Town’s ADU Ordinance allows ADUs located at 4-foot rear and side setbacks have an MFA up to 1,000 square feet. The proposed baseline SB 9 standards align with the ADU development standards. a) Unit Size and Construction. Notwithstanding Article 5, Chapter 1 of this code, the maximum size for one (1) SB 9 Unit shall be one thousand (1,000) square feet, and the maximum height shall be sixteen (16) feet. No basement, bunker, or roof deck shall be permitted. For parcels not created through an SB 9 Lot Split, nine hundred (900) square feet of floor area and development area for SB 9 Units shall be excluded from the maximum floor area and development area calculation through the lot unit fact (LUF) as defined under Section 10-1.202 for the underlying parcel pursuant to Article 5, Chapter 1 of this code. For SB 9 Lots with MFA less than one thousand eight hundred (1,800) square feet, the parcel is permitted for two (2) SB Units with a maximum size of nine hundred (900) square feet each.
• 10-1.1505 (b)
Add MDA requirements for SB 9 Lots from the urgency ordinance as below. b) Development Area for SB 9 Lots. The maximum development area (MDA) permitted on the parcel shall be the maximum floor area (MFA) plus an additional two thousand one hundred (2,100) square feet.

AUGUST 3 DRAFT
• 10-1.1505 (g)(3)
Add lightwell size requirements per Study Session discussion and communication with Commissioner Indaco. The proposed changes requires a size limit for the lightwells while allowing outdoor staircase for easy escapes during an emergency. 3) A basement shall be permitted for SB 9 Units subject to the requirements of Section 10-1.202 and the setback requirements under Section 10-1.505, which shall also apply to any light wells and roof eaves. The maximum size for a lightwell shall be sixty (60) square feet, excluding the outdoor stair and associated landing, and meet the requirements for egress by the California Building Code (CBC) or California Residential Code (CRA).
• 10-1.1505 (g)(5)
Add additional objective landscape screening requirements for incentivized development.

As the incentivized residences are permitted to have a larger floor area and are proposed with the standard setbacks of the underlying zoning districts, additional objective landscape screening requirements will be necessary to reduce the perspective impacts. 5) Landscape screening shall be provided within the 40-foot front and 30-foot rear and side setbacks, excluding the areas for a driveway or ingress-egress easement, public utility easements, septic systems, and 25-foot from the top of bank of creeks.

Maximum spacing for the existing and proposed screening trees shall be 25 feet on center and 10 feet on center for existing and proposed screening shrubs. All new screening trees shall be California-native evergreen trees in 24-inch box minimum sizes, and all screening shrubs shall be California-native evergreen shrubs in 15- gallon minimum sizes.

From: Deborah Padovan
To: Elaine Ling; Bradley Evanson
Subject: Fwd: Town Staff, Consultants & Attorneys are not properly representing residents" interests Date: Monday, August 7, 2023 1:52:38 PM
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From: jill jensen <[email protected]>
Date: August 7, 2023 at 12:19:52 PM PDT
To: Planning Commission <[email protected]>, City Council <[email protected]>, Peter Pirnejad <[email protected]>, [email protected] Subject: Town Staff, Consultants & Attorneys are not properly representing residents' interests
Reply-To: jill jensen <[email protected]>
My name is Jill Jensen and I have lived at 26225
Purissima Rd LAH for 46 years. Our Town has up
until this point protected the ordinances that were
created when the Town was first incorporated.

But now our Town is being threatened by the new
State ordinances and then to top it off the new
Town Attorney, the new Town Manager and
staff/consultants are recommending to go beyond
what is being required by State law.

Other nearby Towns have conceded to the new
State ordinances but are not giving away more.

Why are our new Town officials recommending
our Town give away more?
Planning Commissioners Bredo and Indaco are
Attachment 4

doing such a good job and are listening to the
interests of Los Altos Hills residents. The
residents of Los Altos Hills need to have people
who are eager to listen to their residents and not
to paid officials (who have not been around for
more than a year).

There has been so much unrest and upheaval
throughout the State concerning RHNA that
these rulings will undeniably be revised
downward and possibly be reversed.

Please listen to the majority of Los Altos Hills
residents and return planning to local
control.

Don't give away more than what is required
by State law!!
Jill Jensen

From: Jim Waschura
To: Deborah Padovan
Subject: SB9 Agenda Item
Date: Tuesday, August 15, 2023 8:18:10 AM
Hello Council members, I hope you're summers are going well. In case the SB9 approach coming from the planning commission isn't clear, I wanted to describe some of the thinking that went into it.

Of course we've analyzed what other municipalities nearby have done in their urgency and permanent ordinances. We analyzed the state law to understand what aspects were particularly difficult for our semi-rural character and to see what levers were available to us. We considered our experience with ADU production. We considered the programs written in our recently approved Housing Element.We prognosticated how development might proceed with and without incentives.We had multiple study sessions with residents, who responded to protecting our semi-rural character with incentives.

The basic decision we arrived at (3-to-2 vote) was that offering incentives was better than the "just say no" approach, which minimizes every aspect of the individual constructed units, but does nothing to keep them out of the setbacks and doesn't offer a way to obtain pathways and open space easements that we normally obtain through the development process. Instead, we offer basements and more floor area (for a total floor area that is no greater the MFA/MDA calculated for the lot plus the state-mandated allowances for SB9 and ADU), and we believe particularly that basements are a good incentive to developers since they can sell for more, while not being objectionable because they're not visible.

At the same time, we developed a list of objective design standards that protect privacy and view-protection that we can no longer ensure during a development hearing.

All of our ADU production has been right on the 4' setback line! If we do nothing, and if this mode of production gets popular, we will have lots of small units on everybody's 4' line, without the open space between homes that is largely responsible for our semi-rural character. Furthermore, we won't be able to continue preserving hillsides, waterways, and other open spaces, and we won't be able to build remaining pathways since easements will not be obtained during development.

For these reasons, we chose (3-to-2 vote) to offer what we believe to be meaningful incentives to gather developments outside of setbacks and obtain Supplemental No. 1
AGENDA ITEM #6.A
Distributed 8/14/23

easements. If it doesn't work, we've given up basements that nobody sees. If it does work, we will have protected our semi-rural character when there isn't a lot of room in the state laws to respect the characteristics of our town.

With my regards,
Jim Waschura
Member of the Planning Commission ad hoc committee on SB9

Item 3.1
Town of Los Altos Hills
Planning Commission Regular Meeting
August 3, 2023 Minutes
Zoom Meeting and Town Hall, 26379 Fremont Road, Los Altos Hills, California

1. ROLL CALL AND PLEDGE OF ALLEGIANCE
Chair Bredo called the August 3, 2023 Planning Commission Regular meeting to order at 6:00 p.m.

Present: Commissioner Waschura, Commissioner Couperus, Commissioner Indaco, ViceChair Patel, Chair Bredo

Absent: None
Staff: Interim Community Development Director Ling, Assistant Planner Fox, Assistant City Attorney Lai, Administrative Clerk/Technician Brunner

2. PRESENTATIONS FROM THE FLOOR
Chair Bredo opened PRESENTATIONS FROM THE FLOOR.

Michael Grady, a Los Altos Hills resident, expressed his dissatisfaction with the City Manager and other staff regarding planning decisions.

Chair Bredo closed PRESENTATIONS FROM THE FLOOR.

3. CONSENT CALENDAR

3.1 Approval of July 27, 2023 Special Meeting Minutes
Chair Bredo announced the consent calendar item would be postponed until the next Planning Commission meeting.

4. PUBLIC HEARINGS
Ex Parte
Commissioner Indaco had communications with Commissioner Couperus on Item 4.2.

Commissioner Couperus had communications with Commissioner Indaco on Item 4.2.

Commissioner Waschura and Vice-Chair Patel had no ex parte communications.

4.1 11511 Summit Wood Road – File #APL23-0002 – Lands of Zbrozek Appeal of administrative determination of Preliminary Application submittal dates for two housing development proposals (5-unit and 20-unit development projects).

CEQA review: Consideration of the appeal for Preliminary Application submittal issues is not considered a project and is therefore exempt from CEQA.

Staff: Suzanne Avila
Consultant Planner Avila presented the staff report.

Chair Bredo advised the public that this hearing would not discuss the past project, but the merits of the appeal.

City Attorney La advised the commissioners to have the appellant make his presentation before asking questions.

6.A-Attachment 5
Revised and Posted 8/16/23
DRAFT

2 Planning Commission Special Meeting August 3, 2023 Minutes Chair Bredo opened the PUBLIC HEARING.

Sasha Zbrosek, the appellant, introduced himself and spoke on behalf of his appeal.

Commissioner Waschura directed a question to City Attorney Lai, who responded with the Town's adoption of the state statute, and use of their form.

Sasha Zbrozek, the appellant, provided rebuttal responses to the City Attorney Lai's comments.

Public Comment
No comments.

Chair Bredo closed the PUBLIC HEARING.

Commission Discussion
Commissioner Indaco provided comments relative to the documented communications between the appellant and staff.

Commissioner Waschura agreed with Commissioner Indaco's comments and added his own perspective regarding some of the language in the documentation.

Commissioner Couperus provided comments regarding the completion of the application and the date it was completed.

Vice-Chair Patel provided comments regarding how important details can be for certain planning items and shared a past issue that caused a hearing postponement.

Chair Bredo provided comments regarding the use of the form and signatures and supported denial.

MOTION MADE AND SECONDED: Commissioner Indaco moved to DENY the appeal (APL23-0002) of an administrative determination of the preliminary application submittal dates for two development proposals at 11511 Summitwood Road.

The motion was seconded by Commissioner Waschura.

MOTION PASSED: 5-0
AYES: Commissioner Couperus, Commissioner Waschura,
Commissioner Indaco, Vice-Chair Patel, Chair Bredo
NOES: None
ABSTAIN: None
RECUSE: None
ABSENT: None

4.2 Review and make recommendation to the City Council regarding a Zoning Ordinance and Subdivision Ordinance Amendments of the Municipal Code to ministerially review and approve residential development and subdivision projects pursuant to California Senate Bill 9 (SB 9).

Staff: Elaine Ling
Interim Community Development Director Ling presented the staff report.

DRAFT

3 Planning Commission Special Meeting August 3, 2023 Minutes She began by thanking everyone for their contributions to this topic, then made her presentation.

Vice-Chair Patel asked staff questions pertaining to the default SB9 unit and incentives.

Commissioner Couperus commented on the "SB9" language and the recommendations for screening plantings that were presented in the staff report.

A question-and-answer session between the commissioners, staff, and City Attorney Lai ensued.

Chair Bredo opened the PUBLIC HEARING.

Public Comment
Sasha Zbrozek provided public comment regarding housing element items.

Martha Bowden, participating through zoom, offered comments in support of another resident's comments, which were submitted as a supplemental to the packet, and made other suggestions.

Hari Sankar, participating through zoom, offered comments in support of another resident's comments, which were submitted as a supplemental to the packet and made other comments.

John OConnell, shared a presentation and offered comments, referencing the government documents and codes.

Commissioner Indaco motioned to allow Mr. OConnell extra time to speak, and Commissioner Couperus seconded. Mr. OConnell was given 3 more minutes to complete his presentation.

Carol Gottlieb, a resident of Los Altos Hills, posed questions to the staff regarding trees and sewers, and commented on the light well proposal and other items.

Commissioner Waschura asked City Attorney Lai to answer one of the questions posed by Carol Gottlieb and City Attorney Lai provided an answer.

Commissioner Couperus commented on adding SB9 and ADU units.

Commission discussion ensued regarding the definition of a "SB9 unit." City Attorney Lai made a recommendation to the Planning Commission to consider moving forward to the City Council with one of the two presented options.

A question-and-answer session between the Commissioners, City Attorney Lai, and staff ensued.

Commissioner Waschura offered comments regarding the commission's focus for a motion for this item.

City Attorney Lai recommended that Chair Bredo close the PUBLIC HEARING to continue with Commission Discussion.

Chair Bredo closed the PUBLIC HEARING.

DRAFT

4 Planning Commission Special Meeting August 3, 2023 Minutes Commission Discussion
Commissioner Indaco walked through scenarios regarding baseline development and incentive development with the Commissioners.

Commissioner Waschura asked Commissioner Indaco about how many small parcels would benefit by this ordinance. He noted that the intent would be to prevent overdevelopment of the average-sized lots and to protect the semi-rural character of the Town.

Commissioner Waschura and Vice-Chair Patel noted that if property owners are not incentivized enough, then there would be more motivation towards SB9 development in the setbacks.

Commissioner Indaco commented on the potential for development of dwellings in setbacks with this new ordinance. She wanted to establish a baseline for development.

Vice-Chair Patel offered a perspective regarding SB9 and ADU developments regarding MFA and finding a peaceful solution.

Chair Bredo noted that other jurisdictions would offer less MFA.

Commissioner Indaco noted she was not in favor of supporting basement development.

Commissioner Waschura asked the commission for a compromise that would allow a larger ADU development, that included basements.

Chair Bredo noted that six other jurisdictions had a permanent ordinance that did not allow more MFA than the state-mandated number. She agreed with not supporting the development of basements.

Vice-Chair Patel asked if that was their permanent ordinance or urgency ordinance.

Commissioner Indaco asked City Attorney Lai to comment on the development constraints and she responded.

Commissioner Indaco restated her preference for lower MFA.

Chair Bredo's wish list: revert to 800sqft if it does not meet the objective design standards, lower the maximum size to 850sqft if it is in the setback, lower the maximum SB9 MFA from 3,000sqft to 2,000sqft; do not add 900sqft to total square footage for SB9 development; restrict the maximum height of unit to 16ft., and not in support of allowing basement development.

Commissioner Waschura asked City Attorney Lai about the possibility of lowering the MFA.

Vice-Chair Patel provided a scenario prior to City Attorney Lai’s response.

City Attorney Lai advised the Commission that HCD would be influenced by how jurisdictions adopted the new state regulations into their permanent ordinances and noted that incentives were allowed.

DRAFT

5 Planning Commission Special Meeting August 3, 2023 Minutes Interim Community Development Director Ling proposed a compromise of separating out the lot sizes with LUF less than .5 to allow MFA of 2,000sqft and for lots with a LUF greater than .5 to allow MFA of 3,000sqft for SB9 units.

Vice-Chair Patel and Commissioner Indaco were in support of that compromise.

Commissioner Waschura asked the commissioners about their height preference and most of the commissioners responded they were in favor of a cap of 16ft.

Commissioner Couperus provided an explanation for his preference, noting the elimination of story poles as a requirement.

The commissioners approved the parking chart and staff's recommendation of a maximum of seven (7) parking spaces for parking in the draft proposal.

Commissioner Indaco noted that the current building code did not require stairs in light wells for basements and she would like to adhere to the building code standards.

She argued against incentivizing basements in SB9 units.

Commissioner Waschura proposed a light well size of 6ft by 10ft.

Vice-Chair Patel was in favor of allowing basements but not large light wells.

Commissioner Couperus commented he preferred no daylighting to basement incentives.

Commissioner Waschura asked about the definition of basements and Interim Community Development Director Ling provided a response and shared an image from the basement handout illustrating the concept.

Commission discussion ensued regarding incentivizing development outside of setbacks.

Vice-Chair Patel had a question regarding page 13, item “p” for hedge language. He asked that the language, “shall be maintained” be substituted for “shall be added.” Chair Bredo recessed the hearing at 9:27pm.

Chair Bredo reconvened the hearing at 9:35pm.

Commissioner Waschura shared his notes on the commission discussion at that point:
basement incentive continues, but daylighted basements would count towards MFA; 6ft hedges "shall be maintained", the parking table persists, adding the 7 maximum parking spots requirement, restricting the height to 16ft, allowing 2,000sqft for lots with LUFs of 0.5 or less; allowing 3,000sqft for lots with LUFs greater than 0.5, if a basement has light wells, one for each basement room, for a maximum of 2 and each may not exceed 6ft by10ft or 60sqft, add “shall be maintained” language to the shrub item, and to discuss 800sqft vs 900sqft incentive.

Chair Bredo advised she would be happier with lower MFA incentives.

Vice-Chair Patel appreciated the 850sqft proposed by Commissioner Waschura, as that was 10% increase.

DRAFT

6 Planning Commission Special Meeting August 3, 2023 Minutes City Attorney Lai recommended to the Commission that incentivizing 900sqft would signal to HCD that the Town was committed to following the spirit of the law.

Commissioner Couperus provided comments.

Interim Community Development Director Ling shared with the Commission the illustration for the basement handout that defined the basement, daylighting, and how MFA is calculated.

The commissioners went line by line, making notes on their requested changes, with staff and the City Attorney noting the specific adjustments.

Vice-Chair Patel advised the commission to approve a document that could be quickly reviewed and approved.

Commission discussion ensued regarding incentivizing basements, aligning the ordinance with the Housing Element requirements, and the possibility of reconvening to update the SB9 ordinance in the future.

Commission discussion and a question-and-answer session with the city attorney ensued after a motion was made and prior to the vote.

The Commissioners requested the record reflect the dissent of the basement allowance in SB9 units and that nine (9) months of thoughtful work by the ad hoc committee were spent to arrive at the document being discussed, voted upon, and forwarded to the City Council.

MOTION MADE AND SECONDED: Commissioner Waschura moved to receive the staff report, consider public comments, determine that the proposed action is exempt from the California Environmental Quality Act, and recommend to the City Council to introduce an ordinance amending Title 9 (Subdivisions and Plan Lines) and Title10 (Zoning and Site Development) to adopt regulations pertaining to the ministerial review and adopt the planning commission resolution included as attachment 1 and Errata Sheets to the staff report of residential development and subdivision projects pursuant to California Senate Bill 9 (SB9) with the following changes:
• restrict the height to a maximum of16ft;
• the basement area shall count towards MFA if any part is daylighted; • for LUFs greater than or equal to .5 receive a 3,000sqft MFA and • for LUFs less than .5 receive a 2,000sqft MFA;
• strike the language on page 4 of the errata sheet, Item 10-1.1506 (w) "excluding any outdoor stair and associated landing";
• “Landscape plantings shall be planted” should instead read, “shall be planted and maintained;”
• the default size of the unit is 900sqft;
• in addition to the table outlining the parking requirements, add "with a maximum of 7 required parking spaces";
• tree lights should be on the prohibited list;
• on page 11, there was a typo, where section 6 should be labeled as section r; • in the planting guidelines, add the language "avoid planting in easements other than open space easements";
DRAFT

7 Planning Commission Special Meeting August 3, 2023 Minutes • if the units are in the setbacks, then they are restricted to the default 900sqft; • correct a typo in section B, which states "units shall be 1900", by eliminating the "1" to read "units shall be 900"; and
• make all clerical and grammatical corrections.

The motion was seconded by Vice-Chair Patel.

MOTION PASSED: 3-2
AYES: Commissioner Waschura, Commissioner Couperus, Vice-Chair Patel
NOES: Commissioner Indaco, Chair Bredo
ABSTAIN: None
RECUSE: None
ABSENT: None

5. REPORTS FROM THE COMMISSIONERS

5.1 Past Meeting Assignments
• June 15, 2023 – Commissioner Couperus
• No July 2023 City Council Meeting

5.2 Upcoming Meeting Assignments
• August 17, 2023 – Commissioner Patel
• September 28, 2023 – Commissioner Indaco
• October 19, 2023 – Commissioner Waschura
Chair Bredo noted that there were no past City Council meetings in July and confirmed all meeting assignments.

6. REPORT ON PAST FAST TRACK/SITE DEVELOPMENT MEETINGS

6.1 AUGUST 1, 2023
26023 Alicante Lane – File # SD23-0011 – Lands of Ryan
Site Development Permit for a ne w4,232 square-foot two-story residence with a 2,562 square-foot basement, attached garage, and associated hardscape; existing 1,196 square-foot detached ADU and existing 879 square-foot garage accessory structure.

Interim Community Development Director Ling updated the Commission the 26023 Alicante Lane project was approved.

7. PLANNING DEPARTMENT REPORT
Interim Community Development Director Ling noted the new director, Bradley Evanson will begin Monday, he is from Carmel Valley and lives in Fresno.

Commissioner Couperus asked about the "community development" term. The department’s name was changed in February, after Planning Director Mangalam’s departure, because that role encompasses more than just planning responsibilities.

Commissioner Couperus noted that the weekly City Manager’s report does not report on older stuff, which seems to get lost.

DRAFT

8 Planning Commission Special Meeting August 3, 2023 Minutes Commission discussion about having to follow links in the City Manager’s report to read up on reports from other departments, as they are not part of the City Manager’s weekly. This decision was to make the report shorter to view, but still provide the information.

8. ADJOURNMENT
The public meeting was adjourned at 10:57pm by Chair Bredo.

Respectfully submitted,
Keren Brunner
Administrative Clerk/Technician
DRAFT

To: LAH City Councilmembers
From: Birgitta Indaco
Date: August 16, 2023
Dear City Council members,
I am writing this as an independent resident. The current SB 9 ordinance submitted in the City Council packet with the incentive program in 10-1.1505 (g) is not the intended result of the Planning Commission meeting of August 3, 2023. The motion was building upon the presented SB 9 ordinance and Errata sheets submitted by staff.

The intention of the incentive program for parcels planning to do a SB 9 lot split and develop the first SB 9 Unit, out of the setbacks plus satisfying easement requirements, was to receive more square footage beyond the 900 sq ft.

This table clarifies the proposed incentive:

For SB9 lot splits:

Existing Parcel <= 0.5 LUF The calculated MFA is capped at 2000 sq ft per resulting SB9 parcel with no existing dwelling.

The first SB9 Unit = (MFA – 900 sq ft) and placed out
of setbacks with the 900 sq ft set aside for the second SB9 Unit.

Existing Parcel > 0.5 LUF The calculated MFA is capped at 3000 sq ft per resulting SB9 parcel with no existing dwelling.

The first SB9 Unit = (MFA – 900 sq ft) and placed out
of setbacks with the 900 sq ft set aside for the second SB9 Unit.

The current SB 9 ordinance is worded to give 3000 sq ft plus 900 sq ft for lots > 0.5 LUF and 2000 sq ft plus 900 sq ft for lots <= 0.5 LUF.

The intended incentive is to allow up to 3000 sq ft MFA for parcels > 0.5 LUF for 2 SB 9 units and up to 2000 sq ft MFA for parcels <= 0.5 LUF for 2 SB 9 units.

I urge City Council to amend the current SB 9 ordinance with the attached version 10-1.1505(g)(1).

The attached 10-1.1505(g) (1) version captures the intended incentive program. I hope staff will consider this version or take parts of it for an amended SB9 motion.

Secondly, I strongly oppose basements for SB 9 Units – please make a motion to delete 10-

1.1505(g)(3). Basements should be approved through normal review processes and not administratively over the counter. Their location and impact on property lines and easements has not been revealed with pending HCD legislation and I feel it is best to wait on this incentive for a future date and review. There is no urgency for a basement incentive at this moment.

Sincerely,
Birgitta Indaco
Supplemental No. 3
AGENDA ITEM #6.A
Distributed 8/17/23

Incentive Program for SB9
** derived from Errata sheet from PC meeting Aug 3, 2023 added in with motion of 2000 sq ft cap and 3000sq ft cap utilizing LUF calculations.
10-1.1505 (g) Development Incentives for SB 9 Units on Parcels Meeting Certain Requirements.

If an SB9 Unit is proposed to be constructed to meet the 40-foot front and 30-foot side and rear setbacks as set forth under Section 10-1.1505, and if the applicant or property owner proposes to dedicate to the Town all of the following as applicable: (i) for any parcel, a public right-of-way interest pursuant to Section9-1.703; (ii) for a parcel with a slope equal to or exceeds thirty percent (30%), an open space easement covering the entire sloped area (iii) for a parcel containing a creek identified in the General Plan, an open space easement providing at least a twenty-five (25) feet buffer zone from the top of creek bank; or (iv) for a parcel with a proposed pathway identified on the Town’s Pathway Master Plan, a pathway easement of at least ten (10) feet in width covering the identified pathway segment , then any SB 9 Unit constructed on the parcel shall receive development incentives as described below and subject to the following:
(1) The maximum floor area (MFA) and maximum development area (MDA) permitted on the parcel shall be calculated in accordance with the requirements of the underlying zoning district per Sections 10-1.502 and 10-1.503. Of said MFA permitted and for parcels with a Lot Unit Factor (LUF) as defined under section 10-1.202 less than or equal to 0.5, up to two thousand (2,000) square feet or the maximum floor area of the lot minus nine hundred (900) square feet, whichever is less shall be available for the development of the first SB 9 Unit. Of said MFA permitted and for parcels with a Lot Unit Factor (LUF) as defined under section 10-1.202 greater than 0.5, up to three thousand (3,000) square feet or the maximum floor area of the lot minus nine hundred (900) square feet, whichever is less shall be available for the development of the first SB 9 Unit. For a non-SB 9 lot, residual MFA may be used up to a maximum floor area of three thousand (3,000) square feet for one SB 9 Unit.

For clarity see tables below:

For SB9 lot splits:

Existing Parcel <= 0.5 LUF The calculated MFA is capped at 2000 sq ft per resulting SB9 parcel with no existing dwelling.

The first SB9 Unit = (MFA – 900 sq ft) and placed out
of setbacks with the 900 sq ft set aside for the second SB9 Unit.

Existing Parcel > 0.5 LUF The calculated MFA is capped at 3000 sq ft per resulting SB9 parcel with no existing dwelling.

The first SB9 Unit = (MFA – 900 sq ft) and placed out
of setbacks with the 900 sq ft set aside for the second SB9 Unit.

For SB 9 Unit with existing primary dwelling with no split lots:

All existing lots with a primary dwelling. Allowed to build a 900 sq ft SB9 Unit.

Primary dwelling with residual MFA. If follow incentivized conditions, the SB 9 Unit = residual MFA not to exceed 3000 sq ft.

TOWN OF LOS ALTOS HILLS August 17, 2023
Staff Report to the City Council
SUBJECT: CONSIDERATION OF AMENDMENT TO THE RESOLUTION UPDATING THE FY 2023-24 PLANNING, BUILDING, AND ENGINEERING FEE
SCHEDULES TO ADD AND UPDATE DEPOSIT AMOUNTS RELATED TO:

NPDES PERMIT C.3 REVIEW AND INSPECTION; SEWER
CAPACITY/IMPACT/RATE ANALYSIS; SIGHT DISTANCE AND TRAFFIC STUDY PEER REVIEW; TRAFFIC CONTROL PLAN REVIEW,
MISCELLANEOUS ENGINEERING STAFF REVIEW, AND PEER REVIEW;

AND TOWN ATTORNEY LAND USE REVIEW, AND DETERMINATION

THAT THE PROPOSED AMENDMENTS ARE NOT SUBJECT TO THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT
FROM: WooJae Kim, Public Works Director
APPROVED: Peter Pirnejad, City Manager
RECOMMENDATION: That the City Council adopt a resolution (Attachment 1) updating the FY 2023-24 Planning, Building, and Engineering Fee schedules for Site Development Charges.

BACKGROUND
Under Government Code section 66017, the Town is required to hold a notice public hearing when adopting or increasing fees for development projects that apply to the “filing, accepting, reviewing, approving, or issuing of an application, permit, or entitlement.” Thus, a notice of public hearing was provided at least 10 days prior to this meeting via newspaper publication and public postings, with the notice containing the required explanation of the proposed fee schedule adoption that would be presented before the Council.

DISCUSSION
The Town’s development project review team includes staff members from the Community Development Department, Public Works Engineering, and the Town Attorney’s Office. Certain technical studies or peer reviews required for development projects are contracted out to thirdparty consultants for their expertise and to meet strict review timelines.

In the Town’s adopted FY2022-23 Fee Schedule, there are generally two types of fees, flat fees and deposit-based charges. These fees and charges are collected to recover the Town’s reasonable cost of providing the service or of performing the functions or regulatory activity for which the fees are charged, as applicable, and which are not levied for general revenue purposes, and are not special taxes as defined in Article 3.5 of the California Government Code. Flat fees are beneficial for the ease of understanding application and permit costs. However, a fee nexus study or detailed cost recovery analysis are often required to establish flat fees for site developments. Deposit-based AGENDA ITEM #6.B
W.K.

P.P.

Staff Report to the City Council Page 2
Adopt Amendments to Town’s Development Fee Schedule
August 17, 2023
charges are at actual costs of staff or third-party consultants and can be beneficial to the Town since it is based on maximum cost recovery. Deposit-based charges do take up more staff administrative resources due to managing agreements and tracking and reconciling deposit accounts. Staff is making the necessary efforts to reconcile deposit accounts at the end of each task or project in a timely manner.

In consideration of the multifamily housing development applications received this year, and future multi-family developments anticipated per implementation of the adopted Housing Element goals, and the updates to the National Pollutant Discharge Elimination System (NPDES) Municipal Regional Stormwater Permit, staff is recommending adding specific deposit-based charge items to be included in the FY2023-24 Fee Schedule for Site Development Charges.

Currently, project applicants are required to execute a cost reimbursement agreement to cover all costs incurred by the Town including staff, consultant, and City Attorney review costs, and the agreement is currently implemented through the use of deposits. To clearly identify all fee and deposit requirements for development project applications and other applicable purposes, all deposit-based charges and fees are included in the update Fee Schedule to provide clear notice to applicants and customers. Deposits would require to be replenished by the applicant to cover actual costs incurred and not covered by the initial deposit amount and unused portion is refunded to the applicant after conclusion of project review.

Below is a list of deposit-based charges for specific development review actions for the inclusion to the FY2023-24 Fee Schedule Update for Site Development Charges:
• NPDES Municipal Regional Stormwater Permit (MRP 3.0): The Regional Water Quality Control Board has adopted the third reissuance of NPDES MRP 3.0 Permit, which went into effect July 1, 2023. This reissuance includes significant changes and additional requirements to Provision C.3 - New Development and Redevelopment. For the Town, the most significant change is that all single-family home projects that create and/or replace 10,000 square feet or more of impervious surface would now be regulated by the NPDES requirements and subject to the implementation of low impact development (LID) involving site design and stormwater treatment measures.

For the FY2023-24 Fee Schedule, a third-party stormwater management consultant review deposit would be required for projects triggering C.3 provisions to check applicable controls and LID designs. The Town has worked with EOA, Inc. on past stormwater regulations and reviews. EOA, Inc. has been a regional leader related to stormwater regulations and NPDES permit requirements. EOA provided a not to exceed budget of $4,000 for C.3 review of individual Town development projects. In addition to the deposit amount, ten percent of the C.3 third-party review costs shall be assessed and collected to cover Town staff’s administrative costs to setup the pass-through agreement, oversee the contracted work, process invoices, and evaluate the findings, based on staff rates and estimate of time incurred to carry out these administrative tasks.

For C.3 regulated projects requiring installation of LID site design and stormwater treatment measures in the Town, the developer or the owner of the property is obligated to enter into an operations and maintenance agreement with the Town to maintain LID

Staff Report to the City Council Page 3
Adopt Amendments to Town’s Development Fee Schedule
August 17, 2023
measures in operational status for the life of the project. The developer and the Town must enter into a maintenance agreement for the C.3 measures, binding it to the project site, before a certificate of final occupancy can be issued. Staff is proposing to add a $3,000 deposit line item to the Building Fee Schedule for staff to work with the developer on the NPDES C.3 Maintenance Agreement for approval by the City Council. The deposit is to cover actual staff and consultant costs incurred and would also cover inspections necessary for the maintenance agreement and the annual inspections thereafter. • Sight Distance and Traffic Study Peer Review: Sight distance and traffic study peer review may be required by a third-party traffic engineer when there are traffic safety concerns related to land use development projects. Examples of such concerns could be the location of new proposed driveways relative to oncoming traffic, clear sight distance issues due to proposed improvements, and general increase in vehicle traffic impacting public safety. Staff is proposing to add a $3,000 deposit item plus ten percent administrative fee to the FY2023-24 Fee Schedule. Past such studies by the Town consultant, Traffic Patterns, costed approximately $3,000, which includes 18 hours of a licensed traffic engineer at an hourly rate of $165 per hour. • Sewer Capacity/Impact/Rate Study: For typical single-family housing developments in the Town, a sewer study is generally not required for the processing and review of the projects. As the Town begins to prepare, pursuant to its 2023-2031 Housing Element program and strategies, multi-family zoning regulations and receive applications for multifamily housing developments, it is anticipated that sewer studies would be necessary to analyze the capacity and impacts to the existing sewer system. The annual sewer charge rate would need to be reevaluated as well for multifamily housing projects. In anticipation of future multifamily housing development applications to meet the newly adopted Housing Element goals, staff is proposed to include a Sewer Capacity/Impact/Rate Study deposit item of $10,000, based on estimated cost/time for third party consultants and the work proposals that the Town has received for sewer review needed for recent multi-family project applications received, plus ten percent for administrative fee which captures staff time/rate as described above.
• Town Attorney Land Use Review: Staff is proposing to include a $2,000 City Attorney review deposit amount, plus a ten percent for administrative fee which captures staff time/rate as described above.

Public Works Engineering staff assist the Community Development Department on land development projects and coordinate directly with property owners, development applicants, design professionals, contractors, and community members related to review and management of subdivisions, site developments, building permits, grading and drainage, stormwater regulations, erosion control, sanitary sewer connections, and public right-of-way improvements. Engineering staff also oversee all work in the public right-of-way by reviewing and issuing encroachment permits and enforcing Town/regional/state/federal regulations, policies, and standards.

Staff Report to the City Council Page 4
Adopt Amendments to Town’s Development Fee Schedule
August 17, 2023
Engineer fee schedule items follow the Town’s overall goal for cost recovery. The following updates are needed to the FY2023-24 Fee Schedule update:
• Engineer Staff Billable Rates: Table 1 below highlights the proposed hourly billable rates for the Public Works Engineering staff per the FY2023-24 Operation Budget compared to the current rates.

Table 1: Proposed revisions to Engineer Staff Billable Hour Engineering Staff Billable Rates Current Rate Proposed Rate Public Works Director/City Engineer $265/hr $278/hr
Senior Engineer/Utility Engineering
Manager
$234/hr $234/hr
Associate Engineer $210/hr $219/hr
Assistant Engineer $203/hr $194/hr
These are the rates used when staff time is billed against a deposit. These hourly rates are set as part of the Town’s annual adopted budget.
• Site Development: The current Engineering Fee Schedules includes “Staff Research” under Site Development. The fee is stated as being “varies based on scope.” This line item is being replaced by “Miscellaneous Engineering Staff and Third-Party Peer Review” with a deposit ranging from $500 to $5,000 depending on scope and actual costs. The purpose of the update is to more specifically describe the tasks undertaken and apply the deposit based on scope of review to provide clarity.
• Site Distance and Traffic Study Peer Review and Sewer Capacity/Impact/Rate Study:

This deposit item is proposed to be included under Engineer Fee Schedule under Other Charges in addition to under the Planning Fee Schedule.

Traffic Control Plan Review (Traffic Consultant): As part of an encroachment permit process, if any lane closures are required or proposed for work in the public right-of-way, the applicants are required to submit traffic control plans to be approved by the Town. If the traffic control plan is not prepared and stamped by a licensed traffic engineer, the Town would require a third-party traffic consultant to review the plans. The Town does not have traffic engineer on staff. A qualified traffic consultant would be hired to review the traffic control plans as needed and a deposit amount is proposed to cover such review. Current Town consultant provided estimate of $300 per traffic control plan sheet for a typical standalone lane closure review, which works out to less than two hours to review one sheet at an hourly rate of $165. The estimate to review traffic control plans that would require long-term closure of lanes (over a week) would be at $900 per sheet.

ENVIRONMENTAL REVIEW
This action does not qualify as a “Project” as defined in Section 15378(b) of the California Environmental Quality Act Guidelines.

Staff Report to the City Council Page 5
Adopt Amendments to Town’s Development Fee Schedule
August 17, 2023
2023 CITY COUNCIL WORK PLAN
This is part of 2023 City Council Priorities under ‘Quality of Life and Community Character,’ and satisfies the milestone “Present to City Council for Approval During Mid-year Adjustment” under key project “Master Fee Schedule Updates – ADU Fee Waiver, Fully Burdened Rates, Geotech.”

FISCAL IMPACT
The updated Fee Schedule, if adopted, would go into effect on October 17, 2023 pursuant to Government Code section 66017 which requires that fees and charges applying to the application review/processing for permits, applications and entitlements be effective no sooner than 60 days following the final action adopting these fees and charges. There will not be any substantial change to the revenue for the department.

ATTACHMENT

1. Resolution

RESOLUTION __-23

A RESOLUTION OF THE CITY COUNCIL OF THE
TOWN OF LOS ALTOS HILLS UPDATING THE FY 2023-24 PLANNING, BUILDING,

AND ENGINEERING FEE SCHEDULES TO ADD AND UPDATE DEPOSIT AMOUNTS RELATED TO: NPDES PERMIT C.3 REVIEW AND INSPECTION; SEWER CAPACITY/IMPACT/RATE ANALYSIS; SIGHT DISTANCE AND TRAFFIC STUDY PEER REVIEW; TRAFFIC CONTROL PLAN REVIEW, MISCELLANEOUS ENGINEERING STAFF REVIEW, AND PEER REVIEW; AND TOWN ATTORNEY

LAND USE REVIEW, AND DETERMINATION THAT THE PROPOSED

AMENDMENTS ARE NOT SUBJECT TO THE CALIFORNIA ENVIRONMENTAL

QUALITY ACT
WHEREAS, the Town of Los Altos Hills has established certain fees and charges for Town services, including those that apply to the filing, accepting, reviewing, approving, or issuing of an application, permit, subdivision maps, or entitlement; and WHEREAS, these fees and charges are collected to recover the Town’s reasonable cost of providing the service or of performing the functions or regulatory activity for which the fees are charged, as applicable, and which are not levied for general revenue purposes, for the purposes of defraying impacts from developments on public facilities, and are not special taxes as defined in Article 3.5 of the California Government Code; and
WHEREAS, consistent with California Government Code sections 66016, 66017, and related applicable statutes, the fees and charges, as well as deposits, are for actual cost recover and does not exceed the amount reasonably required to administer the processing of such application, permit or entitlement and the estimated reasonable cost of the Town providing services for such purposes; and
WHEREAS, on August 17, 2023, the City Council held a duly noticed public hearing in compliance with California Government Code sections 6062a, 66016, 66017 and 66018, at which public testimony and written testimony was received, to consider adopting the FY 2023-24 Fee Schedule Updates for Site Development Charges; and
WHEREAS, this action is exempt from environmental review pursuant to Section 15273 of the California Environmental Quality Act as it does not qualify as a “Project” as defined in CEQA Guidelines section 15378(b)”; and
WHEREAS, the City Council desires to implement the updated FY2023-24 Fee Schedule Updates, detailed in “Exhibit A,” which will become effective on October 21, 2023, consistent with Californian Government Code Section 66017.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the Town of Los Altos Hills hereby finds the foregoing recitals are true and correct and incorporated herein, and adopts the FY 2023-24 Fee Schedule Updates for Site Development Charges as set forth in “Exhibit A” to this Resolution and determine that the amendments are not subject to the California Environmental Quality Act. Development fees contained herein shall become effective no sooner than 60 days following final passage and adoption of this Resolution and shall remain in effect until a new Resolution amending the same is adopted by the City Council.

Attachment 1

The above and foregoing Resolution was passed and adopted by the City Council of the Town of Los Altos Hills at a regular meeting held on the 17th day of August 2023 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

BY: _______________________________
Linda G. Swan, Mayor
ATTEST:
______________________________
Deborah Padovan, City Clerk

Exhibit A
Planning Department Fees
Note: If there is more than one action associated with a project, including - zoning permits, Site Development, Variances, Conditional Use Permits, Environmental Review, separate fees for each action apply and the applicant shall pay a cumulative fee to cover the entire amount due for all applicable actions. All items marked as a “deposit” require replenishment once the initial amount has been exhausted, and any unused portion will be refunded to the applicant once final project review is completed.

General Fee Deposit
Pre-Application Meeting $520
Pre-Application Meeting - ADU $410
Additional Plan Review $625
Permit Modification $1,450
Extension – Administrative $250
Extension – City Council $1,140
Site Analysis $260
Appeal $900 $2,000
NPDES C.3 Review $4,000.00 plus 10%
admin fee
Sight Distance and Traffic Study Peer Review $3,000.00 plus 10% admin fee
Sewer Capacity/Impact/Rate Study $10,000.00 plus 10%
admin fee
Town Attorney Land Use Review $2,000 plus 10% admin
fee
Zoning Permits Fee Deposit
General Zoning Permit $260
Fence Permit – Administrative $520
Fence Permit – Public Hearing $1,140
Wireless Facility Mod – Administrative $2,180
Oak Tree Removal $250
Oak Tree Removal (Dead/Emergency) $0
Arborist Report Review $500
Site Development Fee Deposit
Minor Administrative Review $1,560
Major Administrative Review $3,010
Site Development Hearing Review $4,160
Fast Track Hearing Review $4,880
Planning Commission Hearing Review $7,125
Conditional Development Permit $2,180
Geotechnical Report Review $2,000
Grading Policy Exception Planning $1,560

Commission Review
Landscape Performance Deposit – Director’s
Discretion $5,000
Variances and Conditional Use Permits Fee Deposit
Minor Variance - Site Development Committee $3,120
Major Variance - Planning Commission $5,200
Conditional Use Permit - Planning Commission $6,080
Conditional Use Permit - City Council $880 $6,000
CUP Renewal/Amendment - Planning Comm. $3,840
CUP Renewal/Amendment – City Council $880 $6,000
Fee Type Current
Environmental Review Fee Deposit
Technical Environment Study Review $1,500
Preparation of Initial Study/NegDec by Staff $7,500
Preparation of Initial Study/NegDec/EIR by
Outside Consultant Actual Cost
This amount is the actual cost to prepare the work based on an approved proposal from an outside consultant + a 10% administrative fee to cover staff time.

Planning Staff Billable Rates Rate
Planning Director $278/hr
Principal Planner $246/hr
Senior Planner $233/hr
Associate Planner $220/hr
Assistant Planner $213/hr
These are the rates used when staff time is billed against a deposit. These hourly rates are set as part of the Town’s annual adopted budget.

Subdivisions and Mapping Fee Deposit
Minor Land Division (<5 lots) $725 $5,000
Subdivision (5+ lots) $880 $10,000
Extension $550
Modification/Amendment $625 $2,500
Minor Land Division (<5 lots) $5000
Subdivision (5+ lots) $5,000
Certification of Correction $2,000
Lot-Line Adjustment and Merger $725 $3,500
Certificate of Compliance $725 $3,500
Easement Review $3,500
Annexation
Up to Four Lots
(deposit is per number of lots) $880 $5,000
More than Four Lots
(deposit is per number of lots) $880 $5,000
Extension/Modification $205 $2,000
Short-Term Rental Licenses Fee Deposit

Short-Term Rental License (initial) $205
Short-Term Rental Renewal $105
Conditional Short-Term Rental License $1,350
These fees are set per Municipal Code Section 10-1.1206.

Fee Type Current Fee
Other Fees Fee Deposit
General Plan Amendment $880 $5,000
Municipal Code Amendment $880 $5,000
Zoning Ordinance Interpretation $830
Historic Review/Mills Act Agreement $725 $3,000
Application Process Violation Up to 10x applic. fee
Impact Fees
Pathway Fee
New Single-Family Residence
Accessory Dwelling Unit (900 sq ft or larger)*
Additions (900 sq ft or larger)
Equestrian Barns (900 sq ft or larger)
$10,943
$3,826
$3,826
$3,826
This fee is set per Resolution 62-19. *For Accessory Dwelling Units, this fee shall be waived for the Planning Period 2023-2031.

Recreation In-Lieu Fee
Storm Drainage Fee $0.69 per sq ft
This fee assessed on all subdivisions for new hardscape/impervious area added within a public rightof-way or easement.

Building Department Fees
Application and Permit Fees
Building Permit Fees
All Projects Base Fee $240
All Projects - Modifier 0.9% of project valuation
The project valuation is provided by the applicant at time of submittal and confirmed by Building Dept staff during initial plan review.

Mechanical, Electrical and Plumbing Permits
All Projects Base Fee $180
All Projects - Modifier 0.9% of project valuation
The project valuation is provided by the applicant at time of submittal and confirmed by Building Dept staff during initial plan review.

Furnace $82
Gas Lines $82
Water Heater $82
Reroof (< $50,000 valuation) $375
Reroof (≥ $50,000 valuation) $375 + 0.9% of project valuation over $50,000
Solar energy system (set by State law) $450 + $15/kW (above 15kW) This fee is set per California Government Code Section 66015.

Demolition $180
Plan Review Fee 65% of Permit Fee
Plan Retention Fee $25/page
Plan Retention Fee (electronic plans) $75
Planning and Engineering Review and Inspection Fees
Site Development Review $830
Site Development Compliance Inspections $980
ADU Plan Review $725
ADU Compliance Inspections $830
These review and inspection fees are assessed to all building permits that are subject to Planning and Engineering review and compliance inspections. If more than three reviews are required to issue a permit or more than six inspections required final a permit, additional review/inspections fees may be assessed.

Green Building Fee $4/$100,000 of assessed valuation, (Minimum $1/$25,000 of valuation)
This fee is set per California Health and Safety Code Section 18931.6 and goes into the Building Standards Administration Special Revolving Fund established under Section 19831.7 Strong Motion Instrumentation & Seismic
Hazard Mapping Fee
$0.13/$1,000 of assessed valuation (Minimum
fee is $0.50)
Energy Fee (State Imposed)
Formula = 1.65 x (0.15 x building permit fee) 15% of Building Permit

This fee is set by the State of California under Title 24 Part 2 Energy and Accessibility Code and Regulations.

Inspections Fees
During normal business hours $210
After normal business hours $240
Reinspection $210
Inspection for which no fee is otherwise
indicated $210
Code Compliance Inspection $300
NPDES C.3 Maintenance Agreement and
Inspections $3,000 deposit
Other Permit Fees
Extension of Building Permit $180
Replacement of Inspection Card $80
Additional Plan Review $350
This fee is applied when an application requires more than three plan checks to be completed.

Temporary Certificate of Occupancy $500
Approval by the Planning and Building Director is required to issue a Temporary Certificate of Occupancy and the project must demonstrate special circumstances.

Street Address Change $650
Work Without a Permit Up to 4x Permit Fee
The violation fee is set per Municipal Code sections 8-8.05 and 10-2.1318, with the specific amount determined by the Planning and Building Director based on the nature of the violation.

Geotechnical Report Review $2,000
Less than $50,000 $0
$50,000 or more 0.9% of valuation
Gas $20,000
Electric $40,000
Impermeable Structure (per sq ft of development
area added) $0.96/sq ft
This fee set per Municipal Code Section 8-7.05.

Engineering Department Fees
Site Development Fee Deposit
Staff Research Varies based on Scope
Miscellaneous Engineering Staff and ThirdParty Peer Review $500.00 to $5,000.00
(varies based on scope
and actual cost)
Street and Pathway Excavation Permit Fee Deposit
Permit Fee $159.00
Other Street Charges, where applicable
(minimum $520) $11.00/sq.ft.

Other Pathway Charges, where applicable
(minimum $520) $1.28/sq.ft.

Encroachment into Public Right-of-Way Fee Deposit
Application Fee $326.00
Inspection Deposit $1,000.00
Trenching Fee (minimum $400) $17.00/lf
Fence; Wall; Irrigation; Driveway Cuts
(maximum $595) $17.00/lf
Sight Distance and Traffic Study Peer Review $3,000.00 plus 10% admin fee
Traffic Control Plan Review (Traffic
Consultant)
$300.00 per sheet for
standard lane closures;
$900 per sheet for longterm (over one-week)
closures
Engineering Staff and Consultant Fee Rate
Public Works Director/City Engineer $278 265/hr
Senior Engineer/Utility Engineering Manager $234 222/hr Associate Engineer $219 215/hr
Assistant Engineer $194 203/hr
Contracted Associate Engineer $215.00/hr
Sewer Disposal Fee Deposit
Sewer Connection Fee (Residence) $11,236.00
Sewer Connection Fee (Church) $11,236.00
Sewer Connection Fee (Country Club) $30,112.00
Sewer Connection Fee (Office) $20,674.00
Sewer Connection Fee (Fire Station) $33,708.00
Sewer Reimbursement Fee
When connecting to privately developed sewer line Varies based on reimbursement agreement Annual Sewer Charge See Sewer Assessment Fee Schedule

Appeal – Filing Fee and Deposit $585.00 $875.00
Industrial Waste Discharge Permit Full Cost to Town
Solid Waste Collection and Disposal Monthly
Fee See Solid Waste Fee Schedule
Sewer Capacity/Impact/Rate Study $10,000.00 plus 10%
admin fee
Other Charges
Effort out of standard scope Varies based on scope

From: allan epstein
To: Deborah Padovan
Subject: AGENDA ITEM #6.B BUILDING, AND ENGINEERING FEE SCHEDULES Date: Thursday, August 17, 2023 3:24:05 PM
Hi Deborah,
AGENDA ITEM #6.B

BUILDING, AND ENGINEERING FEE SCHEDULES
Please add my comments on AGENDA ITEM #6.B to the packet. • Sewer Capacity/Impact/Rate Study:

It should be made clear on the Fee Schedule that this requirement and deposit applies only to multi-family projects and not to single family residences or single ADU’s per property.

Thank you.

Best,
Allan
Supplemental No. 1
AGENDA ITEM #6.B
Distributed 8/17/23

TOWN OF LOS ALTOS HILLS August 17, 2023
Staff Report to the City Council
SUBJECT: APPEAL OF PLANNING COMMISSION DECISION ON A SITE

DEVELOPMENT PERMIT AND CONDITIONAL DEVELOPMENT PERMIT
FOR A 1,241 SQUARE-FOOT ADDITION TO AN EXISTING 2,731 SQUAREFOOT RESIDENCE, INCLUDING A NEW ATTACHED 528 SQUARE-FOOT GARAGE WHERE THERE PREVIOUSLY WAS NO GARAGE; NEW 657
SQUARE-FOOT SWIMMING POOL; NEW HARDSCAPE IMPROVEMENTS;
DETACHED 699 SQUARE-FOOT ADU; AND VARIANCE REQUEST FOR
707 SQUARE FEET TO ENCROACH 15 FEET INTO SIDE YARD SETBACK WITH A MAXIMUM HEIGHT OF 20’-11”. 25851 ESTACADA DRIVE – FILE #APL23-0003, CDP23-0002, SD22-0066 & VAR23-0001 – LANDS OF

MERKLEY
CEQA REVIEW: CATEGORICAL EXEMPTION PER SECTIONS 15301(E); 15303(A); 15303(E); 15305(A)
FROM: Jeremy Loh, Associate Planner
APPROVED: Peter Pirnejad, City Manager
RECOMMENDATION: That the City Council:

Adopt a resolution (Attachment 1) to DENY the Appeal (APL23-0003) of the planning commission’s July 13, 2023 decision and uphold the approval of a Conditional Development Permit (CDP23-0002), Site Development Permit (SD22-0066), and Variance (VAR23-0001) at 25851 Estacada Drive with conditions of approval issued on July 13, 2023 planning commission public hearing; or
Adopt a resolution (attachment 2) to APPROVE the Appeal (APL23-0003) of the planning commission’s July 13, 2023 decision and reversing the approval of a Conditional Development Permit (CDP23-0002), Site Development Permit (SD22-0066), and Variance (VAR23-0001) at 25851 Estacada Drive and referring the project back to the Planning Commission

BACKGROUND
An appeal of the July 13, 2023 Planning Commission approval of a Site Development Permit and Variance request was filed with the Town on August 2, 2023 by Mayor Linda Swan. The appeal request states that there was confusion of the proposed heights as there were further decreases shown at the public hearing for the first time. The appeal request is for the plans and story poles to be accurately conveyed to the Planning Commission for review and that the applicant consider the first set of recommendations from the May 4, 2023 Planning Commission meeting. The appeal letter is included as Attachment 3.

The application was for a 1,241 square-foot addition and remodel to the existing residence, resulting in an increased structure height. 707 square feet of new floor area requires a Variance to encroach approximately 15 feet into the easterly side yard setback and 43 square feet of new floor AGENDA ITEM #6.C
J.L.

P.P.

City Council Page 2
25851 Estacada Way
August 17, 2023
area requires a Variance to encroach into the westerly side yard setback. All setback encroachments do not encroach any further than the existing structure’s setback encroachments. The proposed structure height ranges from 20’-11” to 16’-0” The original application was reviewed at the May 4, 2023 Planning Commission regular meeting.

Discussion of the Variance request focused on the impacts caused by the increased height and massing with respect to the easterly neighbor. The Commission continued the item, advising the applicant to consider a redesign and/or reduction of the height and massing. The May 4, 2023 Planning Commission minutes are included as Attachment 4. Full background and project information can be viewed in the May 4, 2023 staff report to the Planning Commission included as Attachment 5.

The project returned to the Planning Commission at a special meeting on July 13, 2023. The applicant reduced the height and massing of the structure by a combination of changing roof pitches and eliminating the easterly and westerly gable roofs. The Commission discussed the project and voiced disappointment that the project was not redesigned to reduce additions on the easterly side. They did recognize the height had been reduced and the east and west gables had been removed to reduce the massing and visual impact. There was discussion about what constitutes further encroachment with regards to legal nonconforming structures. A majority of the Commissioners did support the change with regards to the neighborhood character and visual impact as a whole. After discussion and consideration of public comments, the Commission moved to approve the project with the added condition of approval requiring the maximum structure height to match the latest plans except that the garage may not exceed 19 feet tall and that landscape screening return to the Commission for approval. The motion passed with a vote of four ayes and one no. The July 13, 2023 Planning Commission minutes are included as Attachment 6. Full background and project information can be viewed in the July 13, 2023 staff report to the Planning Commission included as Attachment 7. The latest project plans are included as Attachment 8.

NOTICING/PUBLIC OUTREACH
The public was advised of this Public Hearing in the following ways:
• Mailing to property owners who own property within a 500-foot radius – August 4, 2023 • Posted at the project site – August 4, 2023
• Public Posting Places – August 4, 2023
• Town Website: www.losaltoshills.ca.gov – August 4, 2023 To date, staff has not received public comment regarding the appeal.

MUNICIPAL CODE REQUIREMENTS
Per Section 10-1.1009 of the Zoning Ordinance, any interested party may appeal a decision of the Planning Commission; Councilmembers may appeal decisions of the Planning Commission without payment of a fee. In the event of an appeal of the Planning Commission’s decision, the City Council shall hold a public hearing no later than 45 days after the date of the filing of the notice or appeal unless time is waived by either the appellant or project applicant.

City Council Page 3
25851 Estacada Way
August 17, 2023
A Conditional Development Permit is required when a proposed project is located on a property with a LUF of 0.50 or less. Pursuant to Section 10-1.1007(3) of the Zoning Ordinance, when reviewing a Conditional Development Permit application, the Planning Commission must determine if the proposed development meets the standards of the Town by considering evidence in support of the findings for approval. Conditional Development Permit findings are included in Attachment 1.

Additionally, as required by Sections 10-1.1003 and 10-1.1007(2) of the Zoning Ordinance, this application has been forwarded to the Planning Commission for review and approval due to the Variance request. Pursuant to the Variance sections of the Zoning Ordinance, when reviewing Variance requests, the Planning Commission must make findings for approval of the Variance.

Variance findings are included in Attachment 1.

DISCUSSION
The applicant requested a Conditional Development Permit and a Variance for a remodel, a 1,124 square foot one-story addition, and a new pool on a parcel with a Lot Unit Factor of 0.460. All new development on a property with a Lot Unit Factor of 0.50 or less requires the approval of a Conditional Development Permit. The proposed additions are far below the Town’s 27-foot maximum height limit and within the allowable MFA and the MDA for the lot. The proposal will encroach 15 feet into the easterly side yard setback and 8 feet, 2 inches to 4 feet, 8 inches into the westerly side yard setback.

The plans submitted to staff for review after the May 4 Planning Commission meeting showed a change in the roof by eliminating the easterly and westerly gables and changing the roof pitches to 12:9 for the roofs on the easterly and westerly sides and 12:4 in the center of the house where those roofs were previously 12:10 and 12:5 on the original submittal. This change would have resulted in a reduced structure height at the center of the residence of approximately 10 inches and approximately 1 foot, 6 inches at the sides. However, there was a further reduction in height which was not reflected in the packets received by the Commissioners. The applicant further reduced the roof pitch to 12:8 for the easterly and westerly sides, resulting in a reduced structure height of 2 feet at the center of the residence and 2 feet, 2 inches at the sides.

Figure 21: Existing and proposed easterly front elevation (Not to Scale) Source: Christopher Anderson, Architect

City Council Page 4
25851 Estacada Way
August 17, 2023
The July 13, 2023 Planning Commission action approving the project included a reduction in the garage structure height to 19 feet but no other height reductions from the final plans. Full discussion of the background, project specifics, and findings is included in the previous staff reports included as Attachments 5 and 7. Minutes from the previous Planning Commission meetings are included as Attachments 4 and 6.

ENVIRONMENTAL REVIEW
The proposed additions are categorically exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15301(e), which allows for additions to an existing structure provided that the addition will not result in an increase of more than 50 percent of the floor area or 2,500 square feet, whichever is less. The proposed ADU is categorically exempt from the provisions of CEQA pursuant to Section 15303(a), which allows for the construction of a second dwelling unit. The proposed pool and walls are categorically exempt from the provisions of CEQA pursuant to Section 15303(e), which allows for the construction of appurtenant structures such as pools, garages, walls, etcetera. The proposal is categorically exempt from the provisions of CEQA pursuant to Section 15305(a), which allows for set back variances not resulting in a new parcel.

CONCLUSION
The proposal to add to the residence rather than a complete replacement of the residence is limited by the existing footprint. In addition to site constraints and neighborhood context, the purpose of Variances is to resolve practical difficulties and hardships to development which includes the location and layout of existing structures. Based on the facts of the application, the site constraints and the surrounding neighborhood, staff recommends denying the appeal and upholding the Planning Commission’s approval per the resolution and subject to the listed findings and conditions of approval included as Attachment 1. Alternatively, the City Council can approve the appeal, reversing the Planning Commission’s approval and referring the item back to the Commission for further consideration per the resolution included as Attachment 2

ATTACHMENTS

1. Resolution denying the Appeal

2. Resolution approving the Appeal

3. Appeal Letter dated August 2, 2023

4. May 4, 2023 Planning Commission Meeting Minutes

5. May 4, 2023 Planning Commission Staff Report

6. July 13, 2023 Planning Commission Meeting Minutes

7. July 13, 2023 Planning Commission Staff Report

8. Project Plans – City Council Only

Attachment 1
RESOLUTION CC _-23

RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF LOS ALTOS HILLS DENYING THE APPEAL (APL23-0003) OF THE PLANNING COMMISSION’S JULY 13, 2023 DECISION AND UPHOLDING THE APPROVAL OF A CONDITIONAL DEVELOPMENT PERMIT (CDP23-0002), SITE DEVELOPMENT PERMIT (SD22- 0066), AND VARIANCE (VAR23-0001) AT 25851 ESTACADA DRIVE WITH CONDITIONS OF APPROVAL ISSUED ON JULY 13, 2023 PLANNING COMMISSION

PUBLIC HEARING
WHEREAS, The Town of Los Altos Hills received an application for a Conditional Development Permit (CDP23-0002), Site Development Permit (SD22-0066), and Variance (VAR23-0001) from the property owners, Brendan and Taryn Merkley, for a major addition and remodel at 25851 Estacada Drive (“Project”); and
WHEREAS, based on the record presented before it, the Project is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Sections 15301(e), 15303(a), 15303(e) and 15305(a) as the project includes additions to an existing residence, a new ADU, a new pool, and a variance; and
WHEREAS, the Project application was processed in accordance with the applicable provisions of the California Government Code and the Los Altos Hills Municipal Code; and WHEREAS, the Planning Commission held a duly noticed public hearing on the project on May 4, 2023, and considered all evidence, testimony, written documentation, and public comments and continued the item to a date uncertain; and
WHEREAS, the Planning Commission held a duly noticed public hearing on the project on July 13, 2023, and considered all evidence, testimony, written documentation, and public comments; and
WHEREAS, the Planning Commission approved the project with added conditions of approval by a vote of four (4) ayes and one (1) no; and
WHEREAS, on August 2, 2023, Mayor Linda Swan submitted a Notice of Appeal (APL23-0003) to the City Clerk to appeal the Planning Commission’s decision approving the Conditional Development Permit, Site Development Permit, and Variance.

WHEREAS, on August 17, 2023, the City Council held a duly noticed public hearing to consider the appeal and considered all evidence, testimony, written documentation and public comments; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the Town of Los Altos Hills hereby DENIES the appeal and upholds the Planning Commission’s decision dated July 13, 2023, to approve a Conditional Development Permit (CDP23-0002), Site Development Permit (SD22-0066), and Variance (VAR23-0001) for an addition and remodel with setback variances