Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022 – June 30, 2024 10096186.1 LO007-005
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Section 54. Disciplinary Procedure ........................................................................... 22 Section 55. Unpaid Furloughs................................................................................... 26 Section 56. Closure Days with Paid Leave Allowed.................................................. 26 Section 58. Comprehensiveness of Agreement .......................................................... 27 Appendix A – AFSCME Salary Schedule
Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022– June 30, 2024
10096186.1 LO007-005
TOWN OF LOS GATOS
AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES
MEMORANDUM OF UNDERSTANDING
ON SALARIES, FRINGE BENEFITS AND WORKING CONDITIONS
Section 1. Purpose
The Town and the Union agree that the purpose of this Memorandum of Understanding is to promote and provide harmonious relations, cooperation, and understanding between the Town and the employees represented by the Union; to provide an orderly and equitable means of resolving disputes that may arise concerning this Agreement; and to set forth the full agreements of the parties reached as a result of meeting and conferring in good faith regarding matters within the scope of representation pursuant to the State Government Code and the Town Employer-Employee Relations Resolution.
Section 2. Term
This Memorandum of Understanding shall commence on July 1, 2022 and terminate on June 30, 2024.
Section 3. Union Rights
3.1 Advance Notice
Except in cases of emergency as provided in this subsection the Union, if affected, shall be given reasonable advance written notice, normally thirty (30) calendar days of any ordinance, policy resolution, rule or regulation directly relating to matters within the scope of representation proposed to be adopted or amended by the Town and shall be given the opportunity to meet and confer as required by the Meyers Milias Brown Act with the appropriate management representatives prior to adoption.
In cases of emergency when the foregoing procedure is not practical or in the best public interest, the Town may adopt or put into practice immediately such measures as are required. At the earliest practicable date thereafter the Union shall be provided with the notice described in the preceding paragraph and be given an opportunity to meet with the appropriate management representatives. The Union shall timely raise any issues arising under this subsection
3.2 No Discrimination
The Town and Union agree that neither will discriminate in any way against employees covered by this Agreement because of their membership and/or activities on behalf of the Union.
3.3 Stewards
The Town agrees to recognize two (2) duly appointed Union Stewards and two (2) duly appointed alternate Stewards for purposes of Union representation. The Union shall provide the Town with a list of those duly appointed individuals. The Steward or Union Officer shall distribute to all new unit employees material(s) furnished for such purpose by the Union.
3.4 Representation
Upon request of an employee covered by this Agreement, the Steward and/or Union representative shall be present during meetings which the employee reasonably anticipates will involve that individual employee in disciplinary matters. To the extent possible, disciplinary and grievance matters affecting employees shall be considered during normal working hours and with pay.
Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022– June 30, 2024
10096186.1 LO007-005
3.5 Access to Premises
The designated Union business representative, for performance of official duties, shall not be denied access to Town premises subject to that representative first advising Town management that he/she/they/they is on the premises and subject to not interfering with the work duties of Town employees. The Union will be allowed reasonable use of Town facilities with advance notice and approval from the Town for meetings in accordance with Town policies and procedures.
3.6 Bulletin Boards and Union Literature
The Union shall have the right to use the Corporation Yard Bulletin Board and employee mailboxes for posting and distribution of Union materials.
3.7 Release Time
As long as there is no disruption of work, the Town shall provide two (2) AFSCME-authorized union representatives with up to 20 hours of release time each year for the purpose of attending Union conventions, conferences and union-sponsored training programs. The use of release time will have no impact on accrual of paid leave, seniority, completion of probation and eligibility for health and welfare benefits, or pension benefits.
3.8 New Hire Information
The Town will notify the Union of the name, classification, unit and work location of all new hires into the positions in the classifications represented by AFSCME within the first full pay period of the new hire’s starting date.
3.9 Orientation
An AFSCME Union representative will be allowed 15 minutes of release time for the purpose of providing new member information to individuals newly-hired into classifications represented by AFSCME.
Section 4. Savings Clause
If any provision or the application of any provision of this agreement as implemented should be rendered or declared invalid by any final court action or decree or by reasons of any preemptive legislation, the remaining sections of this agreement shall remain in full force and effect for the duration of this agreement.
Section 5. Union Dues
5.1 Certification
The Town shall withhold Union dues from employees’ salary transmit such dues to the Union, provided the Union certifies in writing to the City that the Union has and will maintain each employee’s voluntary authorization for such deductions.
5.2 Payroll Deduction
The Town shall not be obligated to put into effect any new, changed, or discontinued deduction until the pay period commencing thirty (30) days or longer after the Union certifies such new, changed or discontinued deduction.
5.3 Indemnification and Hold Harmless
The Union shall indemnify and hold harmless the Town against any and all suits, claims, demands, and liabilities that may arise out of, or by reason of, any action or omission of the Town in complying with this Section.
Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022– June 30, 2024
10096186.1 LO007-005
Section 6. Management Rights
The Union recognizes that the rights of the Town include, but are not limited to, the exclusive right to determine the mission of its constituent departments, commissions and boards; set the standards of service; determine the procedures and standards of selection for employment and promotion; direct its employees; take disciplinary action; relieve its employees from duty because of lack of work or other legitimate reasons; maintain the efficiency of governmental operations; determine the methods, means, and personnel by which government operations are to be conducted; determine the content of job classifications; take all necessary action to determine when an emergency exists and to carry out its mission in emergencies including the requirement that employees work overtime; and exercise complete control and discretion over its organization and the technology of performing its work.
Section 7. Town Employer-Employee Relations Resolution
The Union and the Town recognize the existing language in Town Resolution 1974-41 as it governs all aspects of labor relations in the Town. Any changes in Resolution 1974-41 which apply to AFSCME Local 101 will be made after meeting and conferring when required by the Meyers Milias Brown Act with the Union.
Section 8. Equal Employment Opportunity
The Union and Town support equal employment opportunity programs.
Section 9. Non-Discrimination
The Town and Union agree that all provisions of this Agreement shall be applied equally to all employees covered herein without favor or discrimination because of any protected class including but not limited to race, color, national origin, ancestry, religion, religious creed, physical disability, mental disability, medical condition, genetic information, marital status, sex, sexual orientation, gender, gender based pregnancy/childbirth, gender identity, gender expression, age (over 40), or political affiliation or any other basis prohibited by applicable Federal, State or Town law. The parties further agree that Section 9 and 9.1 shall not be subject to the Grievance Procedure provided in this Agreement.
9.1 General Provisions Regarding Americans with Disabilities Act Because the ADA requires accommodations for individuals protected under the Act, the Union recognizes the Town's obligation to comply with all provisions of the ADA on a case by case basis.
9.1.1 The Union recognizes that the Town has the legal obligation to meet with the individual employee to be accommodated through the interactive process before any adjustment is made in working conditions. The Union will be notified of these proposed accommodations prior to implementation by the Town.
9.1.2 Any accommodation provided to an individual protected by the ADA shall not establish a past practice.
9.2 Non-Discrimination for Union Activity
The Town and Union agree that they, and each of them, shall not discriminate against any employee because of membership or lack of membership in the Union, or because of any authorized activity on behalf of the Union. The parties further agree that this Section 9.2 may be subject to the Grievance Procedure provided in this Agreement.
Section 10. Salary
10.1 Employees will receive pay adjustments as follows:
Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022– June 30, 2024
10096186.1 LO007-005
10.1.1 Effective the first full pay period in July 2022, or the first full pay period after Council approval of this MOU, whichever is later, the Town will provide a three percent (3%) cost of living adjustment (COLA) and a four and one half (4.5%) market increase, totaling a seven and one half percent (7.5%) salary adjustment for all bargaining unit members. The market increase is intended to bring AFSCME classifications to or near the market median based on data in a compensation survey of the relevant labor market completed by outside consultant Bryce & Associates in April 2022.
In addition, effective in the first full pay period of July 2022, or the first full pay period after Council approval of this MOU, whichever is later, bargaining unit employees shall receive a one-time (non-PERSable) payment of one thousand dollars ($1000).
10.1.2 Effective the first full pay period of July 2023, the Town will provide a three percent (3%) salary increase for all bargaining unit members.
10.2 Pandemic Related Bonus
Effective the first full pay period of July 2022, or the first full pay period after Council approval of this MOU, whichever is later, the Town will provide a one-time, non-pensionable, lump sum payment of $2,500 to all employees who worked for the Town in 2021 who are employed at the Town as of the last day of the pay period the payment is issued.
Section 11. Other Compensation
11.1 Out-of-Classification Pay
Out-of-Classification pay is defined as employees who by written assignment perform the essential functions of a position with a higher salary classification than in which they are regularly employed shall receive higher compensation as set forth below. The Town and the Union agree that it is the intent of Town management, whenever possible, to avoid working an employee out ofclassification for a prolonged period of time.
An employee assigned to work out-of-classification shall be compensated from the first day of the out-of-classification assignment. Out-of-classification pay shall be a minimum of five percent (5%), above the employee's regular salary; or the lowest rate of the higher classification, whichever is greater.
Training programs mutually agreed to by the Town and the Union which are designed to enhance and/or provide career development opportunities shall not be subject to this provision.
Any employee who believes they are working out of classification may request a review of their classification.
11.2 Street-Sweeper Specialty Pay
Employees assigned to operate the street sweeper shall be paid a $5 per hour differential above their base hourly rate. This special assignment pay shall be paid for actual time worked and does not apply to non-worked hours such as vacation, holidays, personal or sick leave.
In accordance with CalPERS regulations, this special assignment pay is reported as PERSable income for those employees who are assigned to operate the street sweeper on a routine and consistent basis. Thus, employees who operate the street sweeper on back-up basis shall be paid the premium in accordance with this agreement but the premium will not be reported as PERSable income.
The Department Director retains the right to determine street sweeper assignments in accordance with the needs of the department. Employees assigned to operate the street sweeper must meet the qualifications of the job and demonstrate proficiency to operate the equipment.
11.3 Class A Driver’s License Pay and Tanker Endorsement Pay Employees who maintain a valid California Commercial Class A Driver’s License shall be paid $30 per month.
Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022– June 30, 2024
10096186.1 LO007-005
Employees who maintain both a valid California Commercial Class A Driver’s License and a Tanker Endorsement shall be paid $75 per month.
11.4 Certificate Pay
Employees in the classifications of Parks and Maintenance Worker and Lead Parks and Maintenance Worker who possess a current Certified Pest Control Applicator Certificate shall receive $50 per month in certificate pay. Employees in the classifications of Parks and Maintenance Worker and Lead Parks and Maintenance Worker who possess a current Backflow Tester Certification Certificate shall receive $50 per month in certificate pay.
11.5 Cellphones
The Town’s cellphone stipend program applies to AFSCME bargaining unit employees.
Section 12. Payroll Practices
12.1 Payroll Periods and Availability of Checks
Employees shall be compensated on a biweekly basis.
Employee pay shall not be withheld more than seven (7) days following end of payroll period; however, overtime may appear on the next payroll period if it is worked following the submittal of time sheets, or during a pay period with a Town holiday which requires early submittal of time sheets and early distribution (before Friday) of paychecks. This may also occur at the end of the fiscal and calendar year.
Every effort will be made to make paychecks available to employees as soon as checks are signed and ready for distribution.
12.2 Automatic Deposit
The Town shall provide an optional direct deposit system for use by employees.
12.3 Deduction and Accrual Information
Payroll deductions and leave balances shall appear on paychecks and be current to the latest payroll period.
Section 13. Retirement Benefits
The Town contracts with the California Public Employees’ Retirement System (CalPERS or PERS) to provide Town employees with retirement benefits.
13.1 2.5% at 55 (Classic Tier One Retirement)
For employees hired with reciprocity or CalPERS membership prior to 1/1/13 without a break in CalPERS service of six months or more or hired and enrolled in CalPERS membership prior to 9/15/12, the Town provides the 2.5% at 55 PERS retirement benefit (Gov’t Code 21354.4).
Employees in this tier shall contribute 8% towards the retirement benefit.
Employees in this tier are subject to the CalPERS Single Highest Year compensation formula (Gov’t Code 20042).
13.2 2% at 60 (Classic Tier Two Retirement)
For employees hired and enrolled on or after 9/15/12 with reciprocity or membership prior to 1/1/13 without a break in CalPERS service of six months or more, the Town provides the 2% at 60 retirement benefit (Gov’t Code 21353).
Employees in this tier shall contribute 7% towards the retirement benefit.
Employees in this tier are subject to the CalPERS 36-month final average compensation (Gov’t Code 20037).
Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022– June 30, 2024
10096186.1 LO007-005
13.3 2% at 62 (Public Employees’ Pension Reform Act of 2013 [PEPRA]) For employees hired on or after January 1, 2013, who meet the definition of new member under Gov’t Code 7522.04(f), the Town provides the 2% at 62 retirement benefit.
For new members hired on or after January 1, 2013, the Town will use the 36-month final average compensation (Gov’t Code 7522.32(a)).
New members hired on or after January 1, 2013 shall pay an amount that is equal to one half (1/2) the normal cost of his/her/their CalPERS pension, or the current contribution rate of similarly situated employees, whichever is greater. (Gov’t Code 7522.30(c)).
13.4 EPMC, 414(h)(2) IRC
Effective June 24, 2001, the Town ceased its participation in the Public Employees’ Retirement System “Employer Paid Member Contribution” (EPMC) provision. Concurrently, the Town began paying in salary to the employees covered by this MOU the equivalent dollar amount of the former EPMC (7% of salary).
The Town has adopted a Resolution materially the same as that recommended by the Public Employees’ Retirement System to implement the provisions of 414 (h) (2) of the Internal Revenue Code (IRC). AFSCME accepts the terms of this Resolution and acknowledges that this Resolution will apply to all current and future members of AFSCME.
13.5 Military Service Purchase
The Town shall permit employees to purchase PERS credit for military service time.
13.6 Retiree Health Benefit for Eligible Retirees Hired on or after July 1, 2018 The Town provides retiree health benefits in accordance with the Public Employees’ Medical and Hospital Care Act (PEMHCA) for employees who qualify as eligible PERS retirees who receive a PERS retirement allowance and are PEMHCA annuitants entitled to such benefits under the PEMCHA.
The Town’s maximum monthly contribution for each eligible annuitant shall be equal to the minimum employer contribution required under the PEMHCA, currently $149 per month, as may be adjusted by CalPERS from year to year. The provisions of the PEMHCA will govern medical insurance coverage for annuitants.
13.7 Retiree Health Benefit For Eligible Retirees Hired before July 1, 2018.
An employee hired prior to July 1, 2018 is eligible for Health Reimbursement Account (HRA) retiree health benefits in accordance with this Section.
13.7.1 The employee completed at least five years of continuous service with the Town; and
13.7.2 The employee retired from the Town taking a service or disability retirement from CalPERS as a retiree receiving a PERS retirement allowance and is a PEMHCA annuitant; and
13.7.3 The employee must actually draw a CalPERS pension within ninety (90) days of separation from the Town, provided the employee remains with the Town’s health plan through COBRA.
Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022– June 30, 2024
10096186.1 LO007-005
13.7.4 The amount of the supplemental retiree health benefit allowance will be equal to 100% of the cost of the premium for Kaiser Bay Area Retiree Only and 90% of the difference between the Kaiser Bay Area Retiree Only Plus One levels of participation. The Town will pay up to $1,947.16 per month as of the 2022 plan year. This amount will increase by $100.00 each year until it is equal to the active employee contribution.
13.7.5 The Town’s contribution towards retiree health insurance set forth in Section 13.6 (the PEMHCA minimum) will be deducted from the amount of contribution provided by this Section (13.7.)
13.7.6 Employees retiring on or after February 1, 2016 and upon becoming eligible for Medicare will cease to receive any retiree health benefit allowance under this Section (13.7) and will become eligible for Supplemental Medicare equal to the cost of Kaiser Senior Advantage Bay Area Medicare rates up to a maximum of 100% Retiree Only, 90% for Retiree Plus One or 90% for Retiree Plus One or More, less the amount of the employer contribution provided under section 13.6 above (the PEMHCA minimum).
This benefit is available to the eligible retired employee only after he or she has reached the age of 65 and is Medicare eligible or as otherwise specified by law.
13.7.7 The benefits described by this Section (13.7) will be provided to annuitants through CalPERS by means of a Health Reimbursement Account (HRA).
13.7.8 Employees hired on and after July 1, 2018, who retire from the Town are not eligible to receive an HRA retiree health benefit allowance from the Town.
Section 14. Health and Welfare Benefits and Rate of Town Contribution The Town contracts with CalPERS for the purpose of providing employees and their eligible dependents with medical insurance benefits. The Town’s maximum monthly contribution for each eligible active employee shall be equal to the minimum employer contribution required under PEMHCA, currently $149 per month, as may be adjusted by CalPERS from year to year.
14.1 Cafeteria Plan
During the term of the MOU, the Town agrees to maintain a Cafeteria Plan, pursuant to Section 125 of the Internal Revenue Code, for the purpose of providing eligible active employees with access to various health and welfare benefits. Benefits available through the Cafeteria Plan include medical insurance, dental insurance, vision insurance and life insurance benefits.
14.1.1 Dental
Employees choosing this option instead of Cash In Lieu will be provided 100% of the Delta Dental PPO Plan premium less a $15.00 employee contribution. If the premium cost of the dental plan exceeds the Town contribution, the employee shall pay through payroll deduction the difference between the monthly premium and the amount contributed by the Town. The Town will pay 100% of the premium for employees choosing to participate in the DeltaCare USA Plan.
14.1.2 Medical
The Town will provide active employees with a medical allowance equal to 100% of the cost of Kaiser Bay Area Medical Insurance Program premium at the Employee Only level of participation, offered by the Public Employees' Retirement System Health Benefit Medical Program. For dependents, Town will pay 90% of the cost for dependents at the level of Kaiser Bay Area and employee will pay 10% of the dependent cost.
As such, Town will pay 90% of the difference between Kaiser Bay Area Employee Only and Kaiser level of participation (Employee Plus One or Employee Plus One/More, depending on family status.)
Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022– June 30, 2024
10096186.1 LO007-005
Example: Employee Only Premium is $800; and Employee Plus One Premium is $1,400 Employee Plus One Premium ($1400) minus Employee Only Premium ($800) = $600 Town pays 90% of $600 = $540
Employee pays 10% of $600 = $60
If the employee chooses medical coverage under a program more expensive than Kaiser Bay Area, the employee will pay the difference between the Town-provided medical allowance and the cost of the more expensive program through payroll deduction.
The Town’s contribution towards medical insurance set forth in Section 13.6 (the PEMHCA minimum) will be deducted from the amount of contribution provided by this Section (14).
14.1.3 Vision
The Town shall pay for employee-only coverage under the Town’s Vision Service Plan (VSP). Employees may enroll eligible dependents at their own cost.
14.1.4 Cash In Lieu
Employees have the option of choosing all available coverages or, upon providing proof of other medical coverage, may choose to opt out of the Town’s coverage and be provided with a cash allocation equal to Four Hundred Twenty Dollars ($420) per month.
Employees who choose to receive the cash must first show proof of alternative minimum essential medical coverage for the employee and employee’s tax family (individuals for whom the employee expects to claim a personal exemption deduction).
Individual coverage, and individual coverage from Covered California does not qualify as alternative minimum essential coverage under this section. Employees must provide reasonable evidence of alternative minimum essential coverage each plan year, during open enrollment. The Town will not make the cash payment if it knows or has reason to know that the employee or tax family does not have alternative minimum essential coverage. Any amount received in cash is taxable.
Employees choosing to receive taxable cash will have the option of receiving it in two equal amounts in December and June, or the first two paychecks of each month (24 times a year).
14.2 ACA Reopener
The union agrees at the Town’s request, to meet and confer on any changes that are within the mandatory scope of bargaining related to the Town’s sponsored Family Medical Insurance and Cash In Lieu benefits that may be related to the compliance and implementation of the Affordable Care Act (ACA).
14.3 Supplemental Health and Welfare Benefits
14.3.1 Life Insurance
Coverage of $50,000 plus $50,000 accidental death: Town to pay for premium. Additional life insurance may be purchased by the employee equal to one to five times the employee's base salary, not to exceed $300,000. Dependent life insurance is available at the employee’s cost.
14.3.2 Disability Insurance
Short Term Disability Policy effective 8th calendar day; coverage of 60% of weekly earnings up to maximum of $1,300 per week for 12 weeks. Long Term Disability benefits begin on the 91st day of disability; coverage of 60% of monthly earnings up to a maximum of $6,000/month.
14.3.3 Employee Assistance Program
Premiums shall be paid by the Town.
Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022– June 30, 2024
10096186.1 LO007-005
14.3.4 Unemployment Insurance
The Town will provide State-mandated benefits as required by law.
Section 15. Workers’ Compensation
The Town and Union agree that employees who sustain illness or injury arising out of and in the course of their Town employment shall receive benefits equal to those mandated by the State of California, and the California Labor Code. Any difference between State mandated benefits and the individual's regular Town salary, if any, shall be charged to the employee's accrued sick leave balance. If sick leave is not available, other accrued leave balances shall be charged. If an employee does not have accrued leave balances, the employee shall receive only the State-mandated benefits.
The policies and procedures affecting the use of workers compensation will be developed and administered by the Town Personnel Officer in accordance with State law. There is a three day (calendar) waiting period to receive benefits, unless the employee is hospitalized or out for more than two weeks. In the event of a non-hospitalized on-the-job injury verified as such and eligible for worker's compensation disability payments, the Town will compensate employees for the first three day waiting period.
Section 16. Deferred Compensation
The Town shall continue to make a Deferred Compensation program available to employees. The Town makes no representation on the merit of the plan or any of the investment products or instruments which may be offered by the plan.
The responsibility for evaluating the investment options within the plan is the responsibility of the individual participant. The Town shall not be obligated to offer more than one Deferred Compensation carrier.
Section 17. Uniforms
Uniform shirts shall be provided to employees at the expense of the Town and shall be required to be worn during working hours. The Town shall determine appropriate shirt colors. Employees shall wear denim jeans as part of their uniform.
Employees shall purchase jeans at their own expense. Employees are to report to work in uniforms that are neat, clean, and in good repair. In the event an employee’s uniform is damaged or in need of replacement as determined by the supervisor, the item may be replaced in advance of the annual schedule.
17.1 Uniform Items for All Employees
On an annual basis, the Town will supply each employee with seven (7) shirts, one standard rain jacket, rain pants, rain boots and cold-weather jackets. Cold weather jackets will be replaced if needed as determined by the employee’s supervisor. Uniform items will be provided annually by November 1. Employees shall be responsible to launder uniform items.
17.1.1 Optional Shorts
Upon employee request and supervisor approval, the Town will furnish each employee up to (2) pairs of shorts per year.
Employees are permitted to wear shorts only when shorts do not pose a safety hazard. The supervisor has the authority to determine when shorts are acceptable.
17.1.2 Optional Weather-Protective Headwear
Upon request by the employee, the Town will supply up to two (2) approved caps or hats per year. No other type of headwear is permitted to be worn during work hours.
17.2 Uniform Items for Mechanics
In addition to the items listed above, the Town will provide coveralls to each mechanic. The coveralls will be laundered by the Town.
Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022– June 30, 2024
10096186.1 LO007-005
Section 18. Safety Equipment
The Town shall retain the right to establish minimum safety and quality standards for safety equipment, clothing and steel-toed safety shoes to be used while performing assigned tasks. If an employee is at work without the required clothing or safety equipment, that employee will not be paid until s/he is at the worksite with the required clothing and safety equipment.
18.1 Steel-Toed Safety Shoes
On an annual basis, the Town will provide one pair of steel-toed safety shoes per employee. The steel-toed safety shoes must be worn at all times except for classroom training or administrative assignments. In the event an employee’s safety shoes are damaged, worn, or unsafe as determined by the supervisor, the shoes may be replaced in advance of the annual schedule. The not-to-exceed amount will be $350 for AFSCME employees. If the safety shoe selected by the employee is less than the amount provided by the Town, the employee may apply the difference toward shoelaces, socks, ergonomic insoles, or other safety-shoe related accessories at the time of purchase.
Section 19. Mileage
Employees using personal vehicles on official Town business shall be reimbursed at the mileage rate established by the I.R.S.
Private vehicles used for Town business shall comply with the California Vehicle Code.
Section 20. Work Schedule
20.1 Standard Work Day
The standard workday shall be 8.5 consecutive hours including a 15-minute morning and a 15-minute afternoon work break, and a forty (40) minute lunch break, which shall include any wash-up time. The standard workday shall begin at 7:00 AM and end at 3:30 PM, the last ten (10) minutes of which shall be available for wash-up time. Minimum seventy-two (72) hours’ notice will be provided by the Town for non-emergency changes in schedule.
20.2 Use of Town Vehicle
An employee whose lunch or break period begins at a work location other than the Corporation Yard may use the job site Town vehicle to go to lunch or obtain food. Travel time in connection with this privilege shall not extend the lunch period beyond the forty (40) minutes including wash-up time, nor extend a break period beyond fifteen (15) minutes.
20.3 Early Start Pay
Non-overtime work begun prior to 7:00 AM shall receive additional compensation of 5% above the employee’s base hourly rate for the entire shift.
The Early Start premium will not apply if the employee’s start time is adjusted at the request of the employee under a flexible work arrangement authorized by the department.
20.4 Work Week
The Town has no intention of changing existing work weeks at the present time.
The Town’s decision to change existing work weeks will involve but not be limited to the following considerations:
(a) Failure to meet the performance objectives of the work unit. (b) Change in service level.
Prior to a change in work week (except in the event of an emergency) the Town will give a minimum two weeks’ notice to affected employees. Further, the Town agrees to meet in good faith to attempt to resolve any hardships caused by a change in work week.
Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022– June 30, 2024
10096186.1 LO007-005
20.5 4-10 Schedule for Vehicle Maintenance Shop
The Town agrees to maintain a 4/10 (4 day per week/10 hours per day) plan for the vehicle maintenance shop as long as Monday and Friday in each workweek can be covered by a mechanic. In addition, this program shall be evaluated quarterly to determine if productivity and coverage meet the Town's repair needs. This will determine if the program will continue.
20.6 Work Schedule and Holidays
Represented employees are entitled to eight (8) hours of paid time off in observation of each holiday listed in Section 29.
20.6.1 Hours Worked on an Observed Holiday
Employees assigned to work on an observed holiday shall be paid time-and-a-half for hours worked.
20.6.2 Hours Worked on the Actual Holiday
Employees assigned to work on an actual holiday that is different than the observed holiday shall be paid double time for the hours worked.
20.7 Flex Schedule
As an alternative to the normal schedule described in the above section, employees may be granted the option to participate in a Flex Schedule under the following terms and conditions:
The Department Director, with the approval of the Town Manager, has the exclusive authority to approve an employee’s request for a flex schedule. The decision to implement or terminate a flex schedule is final and is not subject to meet and confer or any grievance procedure. Participating employees will be provided notification at least one (1) full pay period prior to termination of a flex schedule.
Employees on a flex schedule will receive no more than eight (8) hours of pay on a City observed holiday and will be required to use other accrued leaves or to re-arrange their schedule to maintain 80-hours of pay per pay period.
Section 21. Overtime
21.1 Scheduling
All overtime will be scheduled pursuant to the needs of the Town. Overtime shall be scheduled provided the individual is capable of performing the assignment. In the absence of volunteers, the Town shall assign overtime in rotation based on reverse seniority. Seniority for the purpose of this section is defined by total continuous service to the Town.
21.1.1 Overtime for work in progress shall be assigned to the employee(s) responsible for the assignment.
21.1.2 Overtime for special events shall be offered on a rotational basis in accordance with seniority.
21.2 Compensation
Overtime shall be compensated at the rate of time and one-half based upon either hours in excess of eight (8) per day or hours in excess of forty (40) per week. Overtime compensation shall accumulated as Compensatory Time Off or be paid in cash at the employee's option, subject to the scheduling needs of the Town. If an employee elects to receive compensatory time off in lieu of overtime pay, for each hour of overtime work they will receive one and one-half hour of compensatory time credit.
21.3 Use of Compensatory Time Off
Use of compensatory time off will be at the Town's discretion based on scheduling needs. The Town shall, to the best of its ability and subject to scheduling needs of the Town, make every effort to accommodate employee requests for compensatory time off.
Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022– June 30, 2024
10096186.1 LO007-005
21.4 Compensatory Time Off Cap
The maximum accrued compensatory time accumulation shall be eighty (80) hours. When an employee has reached the eighty (80) hour maximum accrual of compensatory time off, all overtime must be paid in cash until the employee’s compensatory time off bank is reduced below the maximum cap.
Section 22. Call Back
Call back overtime is defined as Town-required return to work after an employee has completed his/her/their normal work shift and before his/her/their next scheduled normal workday. An employee notified of call back overtime that is not contiguous to his/her/their shift less than 72 hours in advance will be paid at the call back rate. An employee called back to work shall be reimbursed for mileage.
22.1 A subsequent call-back shall be considered to be within the initial call-back if the employee is notified within the original threehour period. If two hours and forty-five minutes of the original three-hour period expires before the employee is notified, then a new three-hour minimum shall go into effect. This section also applies to employees on stand-by duty as provided in Sec. 23.
22.2 When additional assistance is needed on a call-back event, supervisor approval is required to call back in more than one additional employee.
Section 23. Standby
23.1 Assignment and Scheduling
The Union recognizes the Town right to schedule standby assignments for employees at Town discretion. Standby assignments shall be made in order to provide services outside the regular work schedule. Standby shall be assigned for the months of November through March, with additional standby periods to be determined on an as-needed basis at the discretion of the Department Director.
Standby assignments shall be scheduled on a volunteer basis, using a list of all employees and offered by rotation based on seniority. Each rotation will last for seven (7) days. Seniority for the purpose of this section is defined as total continuous service to the Town. In the absence of volunteers, the Town shall schedule standby. To the best of its ability, the Town shall schedule standby assignments as far in advance as possible. The Union recognizes the need for standby provision of services and further recognizes that employee failure to respond when assigned standby duty may be cause for disciplinary action including termination.
23.2 Compensation
Standby assignments shall be compensated at the rate of four (4) hours straight time pay for every twenty-four (24) hours of assignment. Assignments of standby duty for more or less than twenty-four (24) hours shall be compensated on a pro-rated basis (4 hours for each 24 hours). Specific call out of employees on standby assignments shall be compensated at the regular overtime rate. Town shall provide a cell phone to employees or those employees electing to receive a stipend may use their own cellphone while on standby assignment.
23.3 For an employee on standby: Minimum call-back pay shall be three (3) hours at the overtime rate with such three-hour period defined beginning with the time of the initial call and concluding thirty (30) minutes after the employee calls in to the Police Department dispatcher that the assignment has been completed.
Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022– June 30, 2024
10096186.1 LO007-005
23.4 For an employee not on standby: Minimum call-back pay shall be four (4) hours at the overtime rate with such three-hour period defined beginning with the time of the initial call and concluding thirty (30) minutes after the employee calls in to the Police Department dispatcher that the assignment has been completed.
23.5 Eligibility
Employees who can respond within a reasonable time period (i.e., 40 minutes on average) shall be eligible for standby duty regardless of where they reside. The Department Director shall qualify employees for standby duty by ascertaining that travel to standby assignments can be accomplished safely.
An employee who meets the above requirement, and whose work would not normally involve assignment to standby duty, may volunteer for such duty and will be assigned to the list of volunteer employees from which standby duty is assigned, at such time as he/she/they has received the necessary training in standby duties and skills. It is the intent of the parties that employees be notified by the Department as soon as possible after the execution of this Agreement that new volunteers will be accepted for training together with information for potential volunteers. If there are volunteers, the Labor-Management Committee shall be convened to discuss implementation of the appropriate training at the earliest practicable date.
23.6 Stand-By Training
The Town will provide additional training in stand-by duties for newly hired employees. Duration of training shall be evaluated by the employee’s supervisor during the first year.
Section 24. Emergency Work
If an emergency work situation (as defined by the Supervisor) does not permit an employee to take their meal period and/or breaks, the missed meal period and/or breaks will be credited as compensatory time at time-and-a-half.
Section 25. Work Furlough Program
25.1 Town Participation
AFSCME recognizes the right of the Town to participate in the Work Furlough Program coordinated by the County of Santa Clara. The purpose of the program is to provide public service for local government through a sentencing alternative program for individuals to perform clean-up and maintenance-type duties.
25.2 Responsibilities
25.2.1 A regular Town employee at the level of Maintenance Worker or higher will be responsible to oversee work related to the Work Furlough Program.
25.2.2 An hourly employee at the level of Maintenance Assistant or higher will be assigned to assist the regular Town employee as necessary, at the discretion of the Department Director or designee.
25.3 Assignment and Scheduling
25.3.1 AFSCME employees will be provided ten (10) calendar days’ notice prior to a Work Furlough Program assignment except when a fill-in is necessary due to an emergency or unusual circumstance.
Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022– June 30, 2024
10096186.1 LO007-005
25.3.2 Work Furlough Program assignments shall be first made on a voluntary basis. In the absence of volunteers, the Town will assign employees with the least seniority from employees hired on or after July 1, 2007.
25.4 Compensation
Maintenance Workers will receive a 5% out-of-class premium for supervision duties when assigned to the Work Furlough Program. This premium will be applied to the entire shift and is in addition to any overtime compensation.
25.5 Evaluation
Work performed by Town employees related to the Work Furlough Program is subject to inclusion in the employees’ annual review.
25.6 Liability
Town employees assigned to the Work Furlough Program are covered for liability purposes by the Town of Los Gatos while performing duties within the scope of his/her/their job.
Section 26. Vacation Schedule
The following vacation schedule shall apply to all employees:
0 to 36 months 10 days per year - 3.08 hours per pay period 37 to 60 months 16 days per year - 4.92 hours per pay period 61 to 120 months 21 days per year - 6.46 hours per pay period 121 to 180 months 23 days per year - 7.08 hours per pay period 181 months and over 25 days per year - 7.70 hours per pay period Maximum accrual of vacation hours shall be 320 hours.
Section 27. Vacation Cash-Out
27.1 Employees who terminate from Town service shall have all accrued vacation leave and compensatory time cashed out effective the last full work-day with the Town. This will terminate the employee's status as an employee of the Town.
27.2 On or before the pay period which includes December 15 of each calendar year, an employee may make an irrevocable election to cash out up to eighty (80) hours of accrued vacation (in whole hour increments) earned in the following calendar year at the employee’s base rate of pay. On the pay day for the pay period which includes Thanksgiving in the following year, the employee will receive cash for the amount of vacation the employee irrevocably elected to cash out in the prior year. However, if the employee’s vacation leave balance is less than the amount the employee elected to cash out (in the prior calendar year) the employee will receive cash for the amount of leave the employee has accrued that year that is remaining at the time of the cash out.
27.3 All employees may apply vacation time cash-out to deferred compensation, so long as applicable law permits.
Section 28. Sick Leave
Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022– June 30, 2024
10096186.1 LO007-005
28.1 Accrual Rate
Accumulation rate shall be eight (8) hours per month (3.70 hours per pay period). Maximum accrual of sick leave hours shall be 1200 hours.
28.2 Sick Leave and Other Accrued Leaves
When an employee is absent for any of the purposes for which sick leave may be used, he/she/they may use other accrued leaves when sick leave has been exhausted, unless he/she/they has received a second consecutive written notice of counseling within an eighteen (18) month period regarding excessive or abusive use of sick leave with the exception of protected leave situations.
28.3 Sick Leave Cash-Out Program For Employees Hired Before July 1, 2018 Employees hired before July 1, 2018 who terminate employment with the Town for any reason other than retirement may cash out their accumulated sick leave as follows:
Months of Employment
1- 59 months at 25%
60 - 119 months at 37.5%
120 months or more at 50%
If an employee is terminated due to a layoff, the employee shall be eligible to cash out 100% of accrued sick leave at time of layoff. In order to be eligible for the terminating sick leave cash-out program, an employee must have a sick leave accrual balance of at least 150 hours at the time of termination. Employees who terminate employment with the Town after a prolonged period of illness or injury, may apply to the Town Manager for a waiver of the 150 hours requirement.
Employees hired on or after July 1, 2018 may not participate in the sick leave cash out program and are not eligible to cash out sick leave.
28.4 Sick Leave Conversion at Retirement to Town Trust
All employees hired prior to July 1, 2007 who retire may convert 100% of their accumulated sick leave to a dollar equivalent at their hourly rate of pay at the time of retirement. Employees hired after July 1, 2007 are not eligible for this Sick Leave Conversion option under this provision.
This amount shall be held in an account. The employee's portion of medical insurance premium payment will be withheld from their monthly retirement payment by PERS. The Town agrees to pay the retiree quarterly in advance on the first pay period of January, April, July, and October of each year after retirement. The first payment will be prorated to the nearest quarter. The retiree's portion of medical payments will be paid from this account by the Town until all monies are depleted from the account or the retiree dies, whichever occurs first.
This account will not accrue interest and will not be paid in cash to the retiree or any beneficiaries, except that upon the death of a retiree whose sick leave account has not been exhausted, the retiree's spousal survivor shall be paid the full cash value of the remaining sick leave in the retiree's account.
The retiree shall be responsible for 100% of their share of future medical insurance payments once the account is exhausted, exclusive of the PEMCHA minimum.
Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022– June 30, 2024
10096186.1 LO007-005
Section 29. Holidays
The following shall be observed as paid eight (8) hour holidays:
• January 1st (New Year's Day)
• 3rd Monday in January (Martin Luther King's Birthday) • the 3rd Monday in February (President's Birthday)
• the last Monday in May (Memorial Day)
• Juneteenth*
• July 4th (Independence Day)
• the first Monday in September (Labor Day)
• Thanksgiving Day
• the Friday following Thanksgiving Day.
• December 25th (Christmas Day)
• four (4) hours each on December 24 and December 31.
• every day declared a holiday by the President or Governor, subject to the Mayor also proclaiming the day as a holiday.
Holidays which fall on Saturday shall be observed on the Friday prior, and holidays which fall on Sunday shall be observed on the following Monday.
*The Juneteenth holiday will go into effect in calendar year 2023. In recognition of Juneteenth 2022, all employees will receive a one-time, non-pensionable $500 lump sum payment in the first full pay period in July 2022, or the first full pay period after Council approval of this MOU, whichever is later.
Section 30. Personal Leave
The employee shall be entitled to twenty-four (24) hours of personal leave per calendar year; such leave shall be noncumulative with no cash value. Of the twenty-four (24) hours annually, the employee may take twelve (12) hours without prior notice and twelve (12) hours with prior notice. If an employee's use of Personal Leave without prior notice results in the Town having to change another employee's schedule without 72 hours' notice, the situation will be considered an emergency under Section 20 (Work Schedule) and will not result in penalty to the Town.
Section 31. Maternity Leave/Family Leave/Medical Leave
The Town recognizes State and Federal law regarding Maternity Leave and Family and Medical Leave. The Town will take action to inform employees of the current provisions of laws affecting these leaves. The Town may, at its discretion, approve leave beyond the specific amount provided above.
Section 32. Catastrophic Time Bank
If an employee, spouse or significant other, or child becomes catastrophically ill or injured, the employee may request in writing of the Town Manager that a catastrophic time bank be established. The bank will enable employees to donate accrued CTO or vacation to the requesting employee in accordance with Departmental policies to be developed.
Section 33. Bereavement Leave
A maximum of 40 hours of bereavement leave shall be provided to each employee for a death in his/her/their immediate family or the immediate family of their spouse/registered domestic partner. Immediate family for the purpose of this section includes spouse/registered domestic partner, parent, grandparent, child, or sibling.
Section 34. Military Leave
Military leave and benefits shall be granted in accordance with State and Federal Law, including the continuation of employee salary and benefits and employees will receive up to thirty (30) calendar days of pay.
Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022– June 30, 2024
10096186.1 LO007-005
Section 35. Personal Emergency Leave
Leave will be available for employees for disasters declared by Federal, State, County, or Town officials if those disasters affect all or a portion of the Town "urban service area". Leave is subject to scheduling by the Town. Employees shall be allowed to charge time off to accumulated Personal Leave, CTO, vacation hours, and sick leave hours (in that order). In the event of a Town emergency (e.g., flood, earthquake) employees are required to remain at work until released by their Supervisor.
Section 36. Jury Duty
An employee required to serve as a trial juror or an expert witness (expertise related to Town employment) shall have his/her/their salary and benefits continue; the employee shall turn over to the Town any compensation (other than travel related) from the courts or other source for jury duty.
Section 37. Leave Without Pay
Leave without pay shall be subject to approval of the Town Manager or designee.
An employee who is on leave without pay shall not earn any employment benefits (including, but not limited to such benefits as vacation sick leave, medical benefits, dental and other insurance benefits, retirement credits for time employed or seniority entitlements of any kind) for the duration of such leave. An employee who is on leave without pay will have the ability to continue all eligible COBRA benefits at their own expense in accordance with the Town's administrative policy on benefit retention.
Vacation, sick leave, or time worked shall not be used intermittently during an extended leave to interrupt a determination that an employee is on leave with no pay.
37.1 Voluntary Unpaid Time Off
Employee participation in this plan is contingent on the Town’s agreement and understanding that employee participation cannot be interpreted as anything other than a temporary and limited good faith effort being made by the employee to do his/her/their part to help ease the Town’s budget shortfall. This is not to be construed as a representation of employee commitment to a permanent program or an admission of any kind that the employee would not become harmed by such a plan becoming mandatory.
Employees may request voluntary unpaid time off under the following circumstances:
A. No impact on accrual of paid leave, seniority, and completion of probation.
B. No impact on benefit eligibility and Town contributions.
C. Employees may cancel participation in the program at any time.
Section 38. Accrual of Benefits
There shall be no accrual of benefits during unauthorized leave, suspension, or leave without pay.
Section 39. Notice of Vacancies
Town job vacancies shall be posted on the Corporation Yard Bulletin Board for the duration of the recruitment period.
Section 40. Promotions
Subject to the needs of the Town, promotional examinations shall be used whenever possible to fill vacancies in the Town service.
Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022– June 30, 2024
10096186.1 LO007-005
Employees promoted to higher paying classifications shall receive a minimum five (5%) percent increase in salary or an amount which shall not exceed the highest step in the range of the higher classification.
Section 41. Probationary Period
The probationary period shall be twelve (12) months for all newly hired employees and six (6) months for employees receiving promotions. If at the end of a six month probationary period a promoted employee who has been routinely evaluated, trained and counseled is not meeting required performance standards, then the Town may extend the probationary period in three month increments, for a total maximum probationary period of 12 months.
An employee who is rejected during a promotional probation period shall have the right to return to his/her/their former classification, and the same right shall apply to an employee who is displaced as a result of such return, provided, however, that no such right shall apply - and no additional right shall be conferred hereby - to an employee who is serving his/her/their initial probationary period with the Town unit.
Section 42. Outside Employment
No full-time paid employee in the classified service shall hold any job other than employment by the Town without the written recommendation of his/her/their department manager and the written approval of the Town Manager. A copy of such approval shall be filed with the Personnel Officer. No employee, whether in the classified service or not, shall engage in other employment or activity which in any way involves a conflict with the interests of the Town or his/her/their responsibilities or duties as an employee.
Outside employment shall be reviewed and re-approved by the Department Director and Town Manager on a yearly basis.
Section 43. Attendance
Employees shall be in attendance at their work in accordance with the rules regarding hours of work, holidays and leaves.
An employee whose absence is not authorized will not receive pay or benefits for the absent period and shall be subject to discipline. Failure on the part of an employee absent without leave to return to duty shall be grounds for discharge. It shall be the responsibility of an employee absent without leave to notify the Department Director of the reason the employee is absent and of the employee's availability for duty.
Section 44. Personnel Files
Employees shall have the right to review materials in their individual personnel files in accordance with State law.
Section 45. Performance Evaluations
45.1 Evaluations
Performance evaluations shall take place at least every three (3) months for all probationary employees and shall take place at least annually thereafter on the anniversary of an employee's employment with the Town. Employees eligible for step increases shall receive their performance evaluation no later than fifteen (15) days prior to their employment anniversary date. Employee evaluation forms shall include a section with a box to be checked indicating whether an employee agrees or disagrees with his/her/their evaluation. Employees granted step increases shall receive those increases effective the closest pay period in which they are eligible.
All performance evaluations shall be discussed with the employee prior to the evaluation being completed. Employees shall sign their individual performance evaluations as evidence of discussion having taken place; employee signature does not necessarily imply agreement with the evaluation. An employee may attach separate written comments to his/her/their evaluation.
Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022– June 30, 2024
10096186.1 LO007-005
Performance evaluations shall be conducted annually from the employee's (1) date of hire, (2) date of last merit increase, or (3) date the employee entered his/her/their classification. The classification date shall supersede the hire date, and the date of the last merit increase shall supersede both the hire date and the classification date.
Performance evaluations shall be completed by an employee's immediate supervisor (i.e., PW Maintenance Supervisor or Parks Maintenance Supervisor). Written comments made by any other supervisor, superintendent or management personnel shall not change the numerical rating of the immediate supervisor.
The Town agrees to provide employees with a copy of both the initial and final versions of their quarterly and annual performance evaluations.
Sick leave usage shall not be directly evaluated on the performance evaluation. Performance categories that are affected by excessive or abusive use of sick leave shall be evaluated.
45.2 Counseling
In the event that a worker's performance or conduct appears to be unsatisfactory or needing improvement, informal verbal or written counseling shall be provided by the workers immediate supervisor. Counseling should be separate from ongoing work site dialogue and should address performance or conduct which, if not improved, may eventually result in a negative evaluation or disciplinary action. Documentation of such counseling shall be given to the worker at the time of the counseling and will not be placed in a worker’s personnel file. When the situation allows counseling, counseling shall be used prior to any unfavorable reports being issued. Counseling should normally take place between the worker and the immediate supervisor.
45.3 Unfavorable Reports On Performance Or Conduct
If upon such counseling a worker's performance or conduct does not improve and a negative evaluation or disciplinary action could result, the supervisor shall prepare a written report that includes specific suggestions for corrective action, if appropriate.
A copy shall be given to the worker and a copy filed in his/her/their personnel file. Workers shall have the right to attach a written rebuttal to the report for inclusion in their personnel file.
Section 46. Seniority
Unpaid leaves of absence and breaks in continuous service shall not be credited to employee seniority.
Seniority will be a factor in determining vacation use.
Section 47. Layoff Policy
47.1 Definitions
As used in this Section, the following words and phrases shall be defined as follows:
47.1.1 Service Seniority shall be defined as the length of time an employee has served as a regular employee of the Town. Service seniority shall not be earned for standby duty, overtime work, during periods of suspension without pay as a result of disciplinary action, or for non-medical leave without pay. Service Seniority for unpaid military leave will be considered in the manner prescribed by State and Federal law.
47.1.2 Classification Seniority shall be defined as the length of time the employee has served as a regular employee in a classification including anytime spent in a higher classification. A higher classification shall mean a job classification with a higher salary range.
Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022– June 30, 2024
10096186.1 LO007-005
47.1.3 A lower class shall mean a job classification with a lower salary range.
47.2 Order of Layoff
When one or more employees in the same class are to be laid off for lack of work, purposes of economy, curtailment of positions or other reason, the order of layoff shall be as follows:
(1) Temporary employees in the order to be determined by the appointing authority. (2) Probationary employees in the order to be determined by the appointing authority. (3) Permanent employees in inverse order of classification seniority.
47.3 Notice of Layoff
Employees subject to the provisions of this Section shall be given a minimum 30 calendar day notice in writing prior to the effective date of layoff. The Union shall receive concurrent notice, and upon written request within seven calendar days after the notice is given shall be afforded an opportunity to meet with the appropriate Town representatives to discuss the circumstances necessitating the layoff and any proposed alternatives to such layoff. Notwithstanding the effort to work cooperatively, the Town has the exclusive right to determine the methods, means, numbers and kinds of personnel by which by services are to be provided. The Town’s decision to make a reduction in force or layoff an employee(s) is not subject to the duty to meet and confer.
47.4 Reassignment in Lieu of Layoff
In the event of layoff, any employee so affected may elect to:
(1) Accept a position in a lower class in which the employee has attained permanent status, provided the employee is otherwise qualified and has more service seniority than other employee(s) in such lower class. (2) Accept a vacant position in a lower class for which the employee has the necessary education, experience, and training as determined by the Director of Human Resources or designee. (3) Any employee entitled to the options noted above, which involve assignment to a lower classification, may elect to be placed on layoff in lieu of accepting such assignment to the lower class. In the event the employee elects to be placed on layoff, such employee will only be recalled to the classification from which the employee elected to be placed on layoff.
Section 48. Layoff Reinstatement
48.1 The names of such persons who are laid off or who elect reassignment in lieu of layoff in accordance with the provisions of Section 47 of this Memorandum of Understanding shall be placed upon a Reinstatement Eligible List in inverse order of Service Seniority, i.e., the person with the greatest Service Seniority on the Reinstatement Eligible List for the classes affected shall be offered reinstatement when a vacancy exists in the affected class. Prior to reinstatement, an employee shall be required to meet the qualifications of the positions to which he/she/they is reinstated.
48.2 In the event an employee accepts reinstatement to a lower class to which the employee is entitled, such person’s name shall remain on the Reinstatement Eligible List for reinstatement to higher class, provided such a person, except for lack of seniority, would have been otherwise entitled to such higher class at the time of the most recent layoff.
48.3 Any person who is reinstated to a class which is the highest class to which they would have been entitled at the time of the layoff shall have the employee’s name removed from the Reinstatement Eligible List.
Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022– June 30, 2024
10096186.1 LO007-005
48.4 In the event a laid off employee cannot be contacted by the Town through usual and customary channels within 10 working days, such person’s name shall be removed from the Reinstatement List, providing, however, that such person within the twenty-four month period specified herein may request that his/her/their name be returned to the Reinstatement Eligible List and such person’s name may the at sole discretion of the Personnel Officer, or designee, be returned to the Reinstatement Eligible List. In this case, the decision of the Personnel Officer or designee shall be final and not subject to any grievance procedure contained herein.
48.5 In no event shall the names of any person laid off pursuant to the provisions of this Section remain on Reinstatement Eligible List for a period longer than twenty-four months from the effective date of such person’s most recent layoff.
48.6 Upon reinstatement to any classification to which the employee is entitled pursuant to the provision of this Section, all benefits acquired by the employee prior to layoff shall also be reinstated. An employee shall not receive credit for time spent on layoff in computing time for any benefit entitlement.
48.7 A laid-off employee shall lose their reinstatement rights for:(1) failure to return to work within 30 days of notice of reinstatement; (2) retirement; and (3) termination for cause.
48.8 Laid-off/displaced employees shall be paid accrued leaves and related benefits in accordance with this Memorandum of Understanding and applicable Town policies and rules. Employees being re-employed who received a sick leave pay off at the time of layoff/displacement, shall have the uncompensated portion of their sick leave balance restored; provided, however, that only those sick leave hours accrued after re-employment shall be applied to sick leave payoff or retiree medical related to a subsequent termination.
Section 49. Contracting Out
No bargaining unit employees shall be laid off as a result of the Town entering into a contract with any outside party.
Section 50. Safety Committee
Union shall encourage its member’s participation in the Town-wide Safety Committee.
Section 51. Safety
The Town shall continue to comply with all applicable State rules and regulations relative to safety. The Town and Union agree to maintain a joint committee to investigate and make recommendations on safety issues identified by the Union and the Town.
Section 52. Physical Examinations and Tests
The Town agrees to provide full cost reimbursement for physical examinations and job-related tests that may be required of employees as a condition of continued employment with the Town.
Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022– June 30, 2024
10096186.1 LO007-005
Section 53. Grievance Procedure
Grievances shall be defined as alleged violations of this agreement or disputes regarding interpretations, application, or enforcement of this agreement or Town ordinances, resolutions, and written policies related to personnel policies and working conditions. Grievances shall not include disagreements, disputes, or activities regarding or pertaining to examinations for employment or promotion, disciplinary action, performance evaluations, probationary terminations and items subject to meet and confer. Nothing in these definitions shall be construed to limit "permanent" employees from appealing decisions affecting their employment to the Town Personnel Board.
No act or activity which may be grievable may be considered for resolution unless a grievance is submitted in accordance with the procedure contained herein within thirty (30) calendar days of the date the grievable activity occurred or the date the grievant could reasonably have known such activity occurred. This statute of limitations shall not apply to probationary employees.
The parties agree that all grievances will be processed in accordance with the following procedure:
Step 1
Any employee who has a grievance shall first try to get it settled through discussion with his/her/their immediate supervisor without undue delay. Every effort shall be made to find an acceptable solution at the lowest possible level of supervision. If after such discussion the employee does not believe the grievance has been satisfactorily resolved, he/she/they may file a formal appeal in writing to his/her/their Department Director within ten (10) calendar days after receiving the informal decision of his/her/their immediate supervisor.
Step 2
The Department Director receiving the formal appeal shall render his/her/their written decision within ten (10) calendar days after receiving the appeal. If after receipt of the written decision of the Department Director the employee is still dissatisfied, he/she/they may appeal the decision of the Department Director to the Town Manager. Such appeal shall be made by filing a written appeal to the Town Manager within five (5) days after receipt of the written decision of the Department Director. The Town Manager shall review the decision of the Department Director and render a decision within twenty (20) working days after the appeal is made. The Town Manager’s decision shall be final unless appealed to the Personnel Board by either the employee or the Department Director.
Step 3
The appealing party may file a written appeal of the decision, findings and conclusions of the Town Manager to the Personnel Board within ten (10) working days of the Town Manager’s decision. Within sixty (60) calendar days of the filing of the appeal, the Personnel Board shall review the decision of the Town Manager and the appeal filed. The Personnel Board may ratify, modify or reverse the Town Manager’s decision. The decision of the Personnel Board shall be final.
The time limitations for filing and responding to grievances may be waived or extended by mutual agreement of the parties. If either party to the grievance so requests, an informal hearing shall be conducted at the Department Director or Town Manager appeal levels. Employees may be represented by counsel, Union representative, Union steward or other person at any stage in the grievance process
Section 54. Disciplinary Procedure
54.1 Suspension
Suspension shall be a temporary separation (without pay) from Town service without pay for disciplinary purposes. The Department Director, with notice to the Personnel Officer, may suspend an employee without pay for disciplinary purposes.
54.2 Reduction in Pay
Reduction in pay is a decrease in compensation paid to an employee for a fixed period of time for disciplinary purposes.
The Department Director, with notice to the Personnel Officer, may impose a reduction in pay to an employee for disciplinary purposes.
Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022– June 30, 2024
10096186.1 LO007-005
54.3 Demotion
The Department Director, with notice to the Personnel Officer, may demote an employee whose performance of his/her/their required duties is below standard, or for other disciplinary purposes. Demotion may be made to vacant position, if approved by the Personnel Officer, in lieu of layoff. No employee shall be demoted to a position for which he/she/they does not possess the minimum qualifications. Written notice of the demotion shall be given by the Department Director to the employee no less than three (3) days prior to the effective date of the demotion, and a copy filled with the Personnel Officer within the same period.
54.4 Termination
The Department Director, with notice to the Personnel Officer, may terminate an employee whose performance of his/her/theirrequired duties is below standard, or for other disciplinary purposes. Written notice of the termination shall be given by the Department Director to the employee no less than ten (10) days prior the effective date of the termination, and a copy filed with the Personnel Officer within the same period.
54.5 Grounds for Discipline
Employees may be disciplined for, including but not limited to, any of the following grounds for discipline:
1. Fraud in securing employment or making a false statement on an application for employment.
2. Incompetency, i.e. inability to comply with the minimum standard of an employee’s position for a significant period of time.
3. Inefficiency or inexcusable neglect of duty, i.e., failure to perform duties required of an employee within his/her/their position.
4. Willful disobedience and insubordination, a willful failure to submit to duly appointed and acting supervision or to conform to duly established orders or directions of persons in a supervisory position.
5. Dishonesty, involving employment.
6. Being under the influence of alcohol or dangerous drugs or narcotics while on duty.
7. Excessive absenteeism.
8. In excusable absence without leave.
9. Abuse of sick leave, i.e., taking sick leave without a doctor’s certificate when one is required, or misuse of sick leave.
10. The conviction of either a misdemeanor or a felony involving moral turpitude shall constitute grounds for dismissal of any employee. The record of conviction shall be conclusive evidence only of the fact that the conviction occurred. The Personnel Officer may inquire into the circumstances surrounding the commission of the crime in order to fix the degree of discipline, or the determination if such conviction is an offense involving moral turpitude. A pleas or verdict of guilty, of a conviction showing a plea of nolo contendere made to charge a felony or any offense involving moral turpitude, is deemed to be a conviction within the meaning of this Section. The Personnel Officer may suspend or dismiss said employee when the time for appeal has elapsed or the judgment of the conviction has been affirmed on appeal, or when an order granting probation is made suspending the imposition of sentence, irrespective of a subsequent order under the provisions of Section 1203.4 of the Penal Code of the State of California allowing such person to withdraw his plea of guilty and enter a plea of not guilty, or setting side a verdict of guilty, or dismissing the accusation or indictment.
11. Discourteous treatment of the public or other employees.
12. Improper or unauthorized use of agency property.
13. Refusal to subscribe to any oath or affirmation which is required by law in connection with agency employment.
14. Any willful act of conduct undertaken in bad faith, either during or outside of duty hours which is of such a nature that it causes discredit to the agency, the employee’s department of division.
15. Inattention to duty, tardiness, indolence, carelessness or negligence in the care and handling of agency property.
16. Violation of the rules and regulations published by the employee’s department.
17. Outside employment not specifically authorized by the appointing authority in accordance with Town procedures.
18. Acceptance from any source of a reward, gift, or other form of remuneration in addition to regular compensation to an employee for the performance of official duties in accordance with policy on Gifts, “Gratuities Or Rewards”.
19. The refusal of any officer or employee of the agency to testify under oath before any Grand Jury having jurisdiction over any then pending cause of inquiry in which the investigation of government bribery or misconduct in agency office is involved shall constitute of itself sufficient ground for the immediate discharge of such officer or employee.
20. Willful violation of any of the provisions of the ordinances, resolutions or any rules, regulations or policies which may be prescribed by the agency.
Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022– June 30, 2024
10096186.1 LO007-005
21. Improper political activity. Example: Those campaigning for or espousing the election or non-election of any candidate in national, state, county or municipal elections while on duty and/or during working hours or in an agency uniform on or off duty; or the dissemination of political material of any kind while on duty and/or working hours or in uniform.
54.6 Procedures for Taking Disciplinary Action
Disciplinary action shall be taken in compliance with the following procedures:
54.6.1 Notice of Intent
Whenever the Department Director intends to suspend an employee, demote the employee, reduce employee pay, o=r dismiss the employee, the Department Director shall give the employee a written notice of discipline which sets forth the following:
a. The disciplinary action intended;
b. The specific charges upon which the action is based; c. A factual summary of the grounds upon which the charges are based; d. A copy of all written materials, reports, or documents upon which the discipline is based; e. Notice of the employee’s right to respond to the charges either orally or in writing to the appropriate authority; f. The date, time and person before whom the employee may respond in no less than (3) working days; g. Notice that failure to respond at the time specified shall constitute a waiver of right to respond prior to final discipline being imposed.
54.6.2 Response by Employee
The employee shall have the right to respond to the Department Director orally or in writing. The employee shall have a right to be represented at any meeting set by the appropriate authority to hear the employee’s response. Such meeting will only be permitted once and continued for no more than two days. In cases of suspensions for three (3) days or more, demotions, reductions in pay or dismissal, the employee’s response will be considered before final action is taken.
54.6.3 Final Notice
After the response or the expiration of the employee’s time to respond to the notice of intent, the appropriate authority shall:
(1) dismiss the notice of intent and take no disciplinary action against the employee, (2) modify the intended disciplinary action, or (3) implement the intended disciplinary action. If discipline is to be issued, the appropriate authority shall prepare and serve upon the employee a final notice of disciplinary action. The final notice of disciplinary action shall include the following:
a. The disciplinary action taken;
b. The effect of the disciplinary action taken;
c. Specific charges upon which the action is based;
d. A factual summary of the grounds upon which the charges are based; e. The written materials, reports and documents upon which the disciplinary action is based; f. The employee’s right to appeal if any.
54.6.4 Termination
The Department Director, with permission from the Personnel Officer, may terminate an employee immediately if it is found that the employee is guilty of gross misconduct.
54.7 Disciplinary Appeals Hearing Procedure
The appeal procedure described herein shall apply only to cases of disciplinary suspensions, reductions-in pay, demotions and dismissals affecting regular part-time and fill-time classified service employees.
1. An employee has five (5) working days after receipt of the Final Notice of Discipline, to appeal the decision by filing a written request for an appeal hearing with the Personnel Officer.
2. If, within the five-day (5) appeal period, the employee involved does not file said appeal, unless good cause for the failure is shown, the action of the Department Head shall take effect as prescribed.
3. If, within the five-day (5) appeal period, the employee involved requests an appeal hearing by filing a written request with the Personnel Officer, the Personnel Officer shall submit the appeal to the Town Manager.
Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022– June 30, 2024
10096186.1 LO007-005
4. A time for an appeal hearing shall be established which shall not be less than twenty (20) working days, from the date of the filing of the appeal. All interest parties shall be notified in writing of the date, time, and place of the hearing at least ten (10) working days prior to the hearing.
5. All hearings shall be private; provided, however, that the appellant may request a hearing open to the public. Any request for an open hearing shall be submitted (5) days prior to the hearing date or the hearing will be closed.
6. Five (5) working days prior to the date set for the hearing each party shall serve upon the other party and submit to the Town Manager list of all witnesses and all exhibits to the Personnel Officer.
7. The employer’s exhibits shall be designated by number. The employee‘s exhibits shall be designated by alphabetical letter.
Neither party will be permitted to call during the hearing a witness not identified pursuant to this section nor use any exhibit not provided pursuant to this section unless that party can show that they could no reasonably have anticipated the prior need for such witness or exhibit.
8. The hearing will not be conducted in accordance with technical rules related to evidence and witnesses but hearings hall be conducted in a manner most conducive to determination of the truth. Any relevant evidence may be admitted if it is the type of evidence on which responsible persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statutory rules which might make improper the admission of such evidence over objection in civil actions. Hearsay evidence may be used for the purpose of supplementing or explain any direct evidence but shall not be sufficient in itself to support a finding unless it would be admissible over the objection in civil actions. The rules dealing with privileges shall be effective to the same extent that they are now or hereafter may be recognized in civil actions, and irrelevant and unduly repetitious evidence may be excluded. Decisions made by the Town Manager shall not be invalidated by any informality in the proceedings.
9. The Town Manager shall rule on the admission or exclusion of evidence.
10. Each party shall have these rights: To be represented by legal counsel or other person of his or her choice; to call and examine witnesses; to introduce evidence; to cross-examine opposing witnesses on any matter relevant to the issues; to impeach any witness regardless of which party first called him or her to testify; and to rebut the evidence against him/her.
If the employee does not testify in his or her own behalf, he/she/they may be called and examined as if under crossexamination.
11. Oral evidence shall be taken only on oath or affirmation.
12. The hearing shall proceed in the following order, unless the Town Manager for special reason, otherwise directs:
13. The Town shall be permitted to make an opening statement.
14. The employee shall be permitted to make an opening statement.
15. The Town shall present its case in chief and offer evidence in support thereof.
16. The employee may then present his or her defense and offer his or her evidence in support thereof.
17. The parties may then, in order, respectively offer rebutting evidence only, unless the Town Manager for good reason, permits them to offer evidence upon their original case.
18. Closing arguments shall be permitted at the discretion of the Town Manager. If the Town Manager permits closing arguments, the party with the burden of proof shall have the right to close the hearing by making the last closing argument.
19. The Town Manager shall determine relevancy, weight, and credibility of testimony and evidence, and shall base its findings on the preponderance of evidence.
20. During the examination of a witness, all other witnesses, except the parties, shall be excluded from the hearing upon motion of either party.
21. No still photographs, moving pictures, or television pictures hall be taken in the hearing chamber during a hearing.
22. The Town Manager, prior to or during a hearing, may grant a continuance for any reason he/she/they believes to be important to his/her/their reaching a fair and proper decision.
23. The Town Manager shall render his/her/their findings and decision as soon after the conclusion of the hearing as possible, and in no event, later than ten (10) working days after conducting the hearing unless otherwise stipulated by the parties.
The Town Manager’s decision shall set forth the recommendations as to each of the charges and the reasons therefore.
24. The Town Manager may recommend the sustaining or rejecting of any or all of the charges filed against the employee. The Town Manager may recommend sustaining, rejecting, or modifying the disciplinary action invoked against the employee.
25. The Town Manager’s proposed decision shall be filled with the charged employee and the Personnel Officer, and if the proposed decision is to reinstate, the decision shall set forth the recommended effective date the employee is to be reinstated, which may be any time on or after the date the disciplinary action went into effect. The decision of the Town Manager is final unless appealed to the Personnel Board.
26. Either party may appeal the Town Manager’s decision by filing a written appeal with the Personnel Officer within ten (10) working days of the Town Manager’s decision.
Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022– June 30, 2024
10096186.1 LO007-005
27. The party desiring to contest the decision of the Town Manager may request a transcript for review by the Personnel Board within ten (10) working days of the Town Manager’s decision. If the appealing party requests a transcript, that party shall pay the cost of the transcript.
28. Within ten (10) working days of the filing of the appeal, the Personnel Board shall review the decision of the Town Manager, the appeal filed and the record. The Personnel Board shall review the decision of the Town Manager, the appeal filed and the record. The Personnel Board may ratify, modify or reverse the Town Manager’s decision; the Personnel Board shall first obtain a transcript of the hearing. The decision of the Personnel Board shall be final.
Section 55. Unpaid Furloughs
AFSCME understands that the Town Manager has the unilateral authority to implement unpaid furloughs. Time will be tracked on timesheets and monitored to ensure that all employees meet the unpaid furlough requirement.
55.1 Town-wide Closures: The Town Manager will close Town services on designated days for which employees will take unpaid time. The closure schedule will be published for employees and the public in advance. In the event that the Town requires an employee to work on a designated furlough day, the employee shall not be furloughed on that day but shall take a different unpaid furlough day on a date mutually agreeable to the employee and his or her supervisor. Rescheduled furlough days must be pre-approved by a supervisor in advance and in accordance with standard operating and staffing requirements.
55.1.1 Rolling Furloughs: As an alternative to taking unpaid furlough on a Town-wide Closure day, employees may request to schedule unpaid furlough on a regularly scheduled workday. The request is subject to supervisory approval and subject to meeting operational needs. Furlough hours may be scheduled as a minimum of four (4) hours.
55.2 Supervisory Authority: The parties recognize the supervisor’s authority to approve or deny paid or unpaid time off based upon the operational needs of the department. Time off will be granted in a manner that minimizes operational hardship.
55.3 Incomplete Furloughs: If an employee does not complete their unpaid furloughs by the last pay period of the fiscal year, the employee’s accrued vacation hours will be forfeited for the balance of the unpaid furlough. The parties understand that furlough hours have no cash value.
55.4 Effect on Paychecks: To minimize fluctuations in paychecks, the furlough pay reduction will be taken in equal increments over the fiscal year, regardless of when the actual furlough day is taken.
55.5 No Limitation: The parties understand that paragraphs in this section are intended to provide a structure for unpaid furloughs and are not a limitation on the Town Manager’s authority to implement unpaid furloughs.
Section 56. Closure Days with Paid Leave Allowed
AFSCME understands that the Town Manager, for budgetary constraints or for operational efficiency, may close all nonessential services and permit employees to use paid leaves. For example, the Town Manager may institute the closure of nonessential services between the Christmas and New Years’ holidays. Where not in conflict with the provisions of Section 54 (Unpaid Furloughs), in regard to these closure days:
56. 1
Employees performing essential services and scheduled to work on the Closure Days will receive straight-time pay for hours worked up to forty per week, and overtime pay for hours worked in excess of forty per week.
Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022– June 30, 2024
10096186.1 LO007-005
56.2 At their election, employees who are not scheduled to work may utilize accrued paid vacation, compensatory time off, or personal leave to cover the Closure Days. Leave must be requested in the manner provided in the MOU. Employees who use paid leave will accrue sick leave, vacation and CalPERS credit while on leave.
56.3 While employees have the option to utilize paid vacation, compensatory time off, or personal leave, they are also permitted to take leave without pay (LWOP) to cover Closure Days. Employees who take LWOP will maintain their health, life and disability insurance, as well as any medical cash in lieu. Employees who utilize LWOP will not accrue sick leave, vacation or CalPERS credit while on LWOP.
56.4 If an employee requests to work during the closure days due to hardship (e.g., the employee is out of leave and is financially unable to take time without pay), the Department Director will first try to assign the employee in their own department. If a suitable assignment is not available in the employee’s own department, the Town Manager maintains the management right to place the employee in an alternative assignment for the furlough period.
56.5 The Town Manager maintains the management right to determine essential and nonessential services. 57 Tuition Reimbursement Program
57.1 The Town will reimburse employees up to $3,000 per fiscal year toward the cost of books, university/school fees (except parking) and tuition.
57.2 The reimbursement shall be only for courses that are directly related to the employee’s position as determined by the Town Manager, including general education courses that are generally related to attainment of a job-related degree or certification.
General education courses not generally related to the employee’s position will not be eligible for reimbursement.
Reimbursement shall be taxed pursuant to State and Federal regulations.
57.3 Application for tuition reimbursement shall be made to the Town before the course begins. Prior to reimbursement of costs, all course work must be completed with a passing grade of “C” or equivalent when numerical score or pass/fail is given.
57.4 Any employee who terminates employment with the Town within one (1) year from the completion of a class or classes, for which tuition reimbursement was paid shall refund all tuition paid under this provision, unless required to attend by the appointing authority. This section shall not apply in cases involving disability, layoff, or death of the employee, or other unforeseen circumstances as approved by the Appointing Authority on a case-by-case basis.
Section 58. Comprehensiveness of Agreement
Town and Union agree that this agreement represents all salary, wages, and fringe benefits subject to negotiation and available to employees.
Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022– June 30, 2024
10096186.1 LO007-005
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Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022– June 30, 2024 10096186.1 LO007-005
AFSCME MOU Exhibit A
For Fiscal year 2022/2023 – 7.5% Increase Effective First Full Pay Period in July
Town of Los Gatos AFSCME Classifications
Salary Schedule for Fiscal Year 2022/23
Effective July 10, 2022
Adopted by Town Council June 7, 2022
Class
Code Classification Title Rate Type
Range
AF1 Step 1 Step 2 Step 3 Step 4 Step 5 Step 6
6619 Assistant Equipment Mechanic Hourly 09 $33.37 $35.04 $36.79 $38.63 $40.56 $42.59 6620 Equipment Mechanic Hourly 03 $38.38 $40.30 $42.32 $44.44 $46.66 $48.99 6618 Supervising Equipment Mechanic Hourly 08 $44.14 $46.35 $48.67 $51.10 $53.66 $56.34 6670 Facility Technician Hourly 02 $35.71 $37.50 $39.38 $41.35 $43.42 $45.59 6600 Lead Parks & Maintenance Worker Hourly 07 $40.75 $42.79 $44.93 $47.18 $49.54 $52.02 6650 Parks & Maintenance Worker Hourly 05 $32.79 $34.43 $36.15 $37.96 $39.86 $41.85 6660 Parks & Maintenance Worker Trainee Hourly 04 $26.78 $28.12 $29.53 $31.01 $32.56 $34.19 6605 Senior Parks & Maintenance Worker Hourly 06 $35.68 $37.46 $39.33 $41.30 $43.37 $45.54 6610 Town Arborist Hourly 03 $38.92 $40.87 $42.91 $45.06 $47.31 $49.68 Reflects General Increase of 7.5%.
AFSCME 8% Page 1 of 1 Approved 6/7/2022
ATTACHMENT 1
PREPARED BY: Salina Flores
Human Resources Director
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 06/07/2022
ITEM NO: 21
DESK ITEM
DATE: June 7, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Approve a Labor Agreement Between the Town of Los Gatos and the American Federation of State, County, and Municipal Employees and Authorize the Town Manager to Execute the Memorandum of Understanding REMARKS:
Attachment 3 contains public comments received between 11:00 a.m., Monday, June 6, 2022, and 11:01 a.m. Tuesday, June 7, 2022.
Attachment Previously Received with the Staff Report:
1. Salary Schedule for AFSCME effective July 10, 2022
Attachment Previously Received with the Addendum:
2. Redlined AFSCME MOU
Attachment Received with this Desk Item:
3. Public comments received between 11:00 a.m., Monday, June 6, 2022, and 11:01 a.m.
Tuesday, June 7, 2022.
ATTACHMENT 3
From: Phil Koen
Sent: Tuesday, June 07, 2022 10:59 AM
To: Rob Rennie <[email protected]>; Matthew Hudes <[email protected]>; Mary Badame <[email protected]>; Maria Ristow <[email protected]>; Marico Sayoc <[email protected]>
Cc: Laurel Prevetti <[email protected]>; Shelley Neis <[email protected]>; Arn Andrews <[email protected]>; jvannada; Rick Van Hoesen; Lee Fagot; Catherine Somers Subject: Agenda items #19 - #22
Dear Honorable Mayor and Members of the Town Council,
The Los Gatos Community Alliance respectfully requests that Agenda items #19 through #22 be pulled from tonight’s consent calendar to allow for public discussion and increased transparency. We acknowledge that the terms of the various labor agreements are the result of a long negotiation process and want to thank all parties for their efforts in finding a solution. We want to also thank the Town Council for their hard work on this matter.
Issue
The reason for pulling these items revolves around the lack of transparency in the Staff report. While we understand labor negotiations are confidential and therefore little was disclosed during the process, it is then extremely important that the Staff report be comprehensive and fully transparent in detailing how the Town arrived at these results. This is particularly important when the only benchmark the public had regarding possible increases in salary and benefit expenditures for FY 23 was what was included in the preliminary budget. Clearly, what is being approved tonight is materially greater than what was in the preliminary budget.
Request for more information
The LGCA requests that Staff disclose the following additional information prior to any vote on agenda items #19 through #22:
1. What will be the total salary and benefit expenditures for FY 23 as previously reported on Schedules C-8, C-9, C-10, C-11, C-12, and C-13 after taking into effect all salary adjustments recommended in Agenda items #19-#22?
2. How is the $2,318,733 (increases to negotiated salary increases) being funded? Since the proposed FY 23 budget did not have an operating surplus, where are the additional sources of funds coming from to cover this increase? Please be specific.
3. A portion of the $2,318,733 expenditures are one-time in nature. How much are the “one- time payments” and how much will be recurring expenditures beyond FY 23?
4. Please disclose the initial offer letter from the Town to each of the bargaining units so the public has full transparency to the negotiating process. For sake of clarity, the City of San Jose releases to the public all correspondence between bargaining units once agreements have been reached and voted on by the bargaining units. It appears we are at that point.
5. If the Town does not use $902,579 of the OPEB 115 Trust Assets to “further balance the budget” what other funds could the Town tap to provide the required source of funding? Was this discussed and approved by the Town Council Trust Fund Committee? Thank you.
Phil Koen
LGCA
PREPARED BY: Salina Flores
Human Resources Director
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 06/07/2022
ITEM NO: 22
DATE: June 2, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Approve Cost of Living Increases for Unrepresented Management, Confidential, and Temporary/Hourly Employees; One-Time Non-PERSable Bonuses for Confidential and Management; and a 5% Market Adjustment for Confidential and Temporary/Hourly Employees
RECOMMENDATION:
Approve cost of living increases for unrepresented Management, Confidential, and Temporary/Hourly Employees; one-time non-PERSsable bonuses for Confidential and Management; and a 5% market adjustment for Confidential and Temporary/Hourly Employees.
BACKGROUND:
On June 7, 2022, Council will consider labor agreements with the Association of Federal, State, County and Municipal Employees (AFSCME), Town Employee’s Association (TEA), and the Police Officers’ Association (POA).
Unrepresented employees are those that are salaried Management, hourly Confidential, and Council Appointees’. Temporary/Hourly employees that work fewer than 20 hours per week are also in the unrepresented group and serve in an unbenefited capacity. All serve as at-will employees. Compensation and benefit changes for unrepresented employees are approved by Council and typically align with changes resulting from negotiations of successor agreements with the Town’s represented bargaining groups to retain general parity with the exception of the Council Appointee positions of Town Manager and Town Attorney. Council Appointee compensation and benefit changes are determined directly by Council and are contained in individual Employment Agreements. Staff is not recommending a salary change for Council Appointee employees.
PAGE 2 OF 2
SUBJECT: Unrepresented Management, Confidential, and Temporary/Hourly Employees
DATE: June 2, 2022
DISCUSSION:
The bargaining units settled with two-year agreements (see separate agenda items for each).
Staff is recommending a 3% cost of living increase for FY 2022/23 and FY 2023/24 for unrepresented Management and Confidential employees and a one-time, non-PERSable bonus of $2,500 for unrepresented Management and Confidential employees. In addition, Confidential employees would also receive a 5% market adjustment. A market adjustment for Management may be considered at a later date, once potential compaction issues have been analyzed.
Temporary/Hourly classification rates are generally benchmarked to the full-time counterpart positions and as such, staff is recommending a 3% cost of living increase for FY 2022/23 and FY 2023/24 and a 5% market adjustment. All parameters are effective with the first full pay period in July. These recommendations maintain parity with TEA.
CONCLUSION:
The recommendations contained in this report bring the unrepresented groups to general parity with the represented employees.
FISCAL IMPACT:
The anticipated fiscal impact for the 3.0% COLA increases in FY 2022/23 is $65,000 for Confidential, $216,000 for Management, and $22,000 for Temporary classifications. The anticipated fiscal impact for FY 2022/23 market adjustments for Confidential is $108,840 and $37,000 for Temporary classifications. $. In addition, the anticipated fiscal impact of onetime non-pensionable payments for Management and Confidential is $108,500 for FY 2022/23. The total cost impact will be absorbed in the Town’s existing operating budget.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Salary Schedule for Management Effective July 10, 2022
2. Salary Schedule for Confidential Classifications Effective July 10, 2022
3. Salary Schedule for Temporary/Hourly Classifications Effective July 10, 2022
Town of Los Gatos Town Council and Management Classifications Salary Schedule for Fiscal Year 2022/23
Effective July 10, 2022
Adopted by Town Council June 7, 2022
Class
Code Classification Title Annual Salary
Minimum
Annual
Salary
Maximum
2615 Assistant Parks & Public Works Director/Town Engineer $ 146,041 $ 197,155 2110 Assistant Town Manager $ 173,596 $ 234,355
2420 Chief Building Official $ 132,307 $ 178,614
2400 Community Development Director $ 169,358 $ 228,633 2180 Community Outreach Coordinator $ 91,353 $ 123,326
2130 Economic Vitality Manager $ 125,930 $ 170,005
2310 Finance and Budget Manager $ 132,307 $ 178,614
2300 Finance Director $ 165,232 $ 223,063
2200 Human Resources Director $ 153,434 $ 207,136
2900 Information Technology Manager $ 132,307 $ 178,614 2800 Library Director $ 153,434 $ 207,136
2820 Library Division Manager $ 100,836 $ 136,129
2600 Parks & Public Works Director $ 169,358 $ 228,633
2645 Parks & Public Works Operations Manager $ 114,087 $ 154,017 2630 Parks & Public Works Superintendent $ 132,307 $ 178,614 2412 Planning Manager $ 132,307 $ 178,614
2510 Police Captain $ 157,270 $ 212,314
2500 Police Chief $ 177,936 $ 240,213
2545 Police Records & Communication Manager $ 122,858 $ 165,859 2140 Senior Administrative Analyst $ 98,376 $ 132,808
2650 Senior Civil Engineer $ 125,930 $ 170,005
2000
Town Attorney - Council Appointed (Effective 9/19/21, Adopted by Town Council 11/16/21) $ 249,900
2190 Town Clerk $ 132,307 $ 178,614
2100
Town Manager - Council Appointed (Effective 8/22/21, Adopted by Town Council 11/16/21) $ 267,750
2655 Transportation & Mobility Manager $ 122,858 $ 165,859 2905 Urban Forest Manager $ 114,087 $ 154,017
1000
Town Council (Effective 1/1/19 Pursuant to Ordinance Adopted by Town Council on 2/6/18)
Management salaries reflect a spread of 35% to the top of the range.
Reflects a General Increase of 3%
$570 Stipend per month,
for a total compensation of
$6,840 per year
Management 3% Page 1 of 1 Approved 6/7/2022
ATTACHMENT 1
Town of Los Gatos Confidential Classifications
Salary Schedule for Fiscal Year 2022/23
Effective July 10, 2022
Adopted by Town Council June 7, 2022
Class
Code Classification Title Rate Type Range CF1 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 3300 Accountant/Finance Analyst Hourly 07 $47.14 $49.50 $51.98 $54.58 $57.31 $60.76 3000 Administrative Analyst Hourly 07 $47.14 $49.50 $51.98 $54.58 $57.31 $60.76 3518 Administrative Assistant Hourly 09 $32.41 $34.03 $35.73 $37.52 $39.40 $41.95 3115 Administrative Technician Hourly 04 $40.65 $42.68 $44.81 $47.05 $49.40 $52.45 3190 Deputy Clerk Hourly 08 $38.69 $40.62 $42.65 $44.78 $47.02 $49.95 3500 Executive Assistant to Chief of Police Hourly 03 $38.69 $40.62 $42.65 $44.78 $47.02 $49.95 3100 Executive Assistant to Town Manager Hourly 05 $40.65 $42.68 $44.81 $47.05 $49.40 $52.45 3015 Human Resources Technician Hourly 02 $36.83 $38.67 $40.60 $42.63 $44.76 $47.58 3200 Legal Administrative Assistant Hourly 02 $36.83 $38.67 $40.60 $42.63 $44.76 $47.58 3180 Office Assistant Hourly 01 $29.65 $31.13 $32.69 $34.32 $36.04 $38.42 3301 Payroll Technician Hourly 06 $40.65 $42.68 $44.81 $47.05 $49.40 $52.45 Reflects General Increase of 8% and includes 5% Confidential Premium Confidential 8% Page 1 of 1 Approved 6/7/2022
ATTACHMENT 2
Town of Los Gatos Temporary Classifications
Salary Schedule for Fiscal Year 2022/23
Effective July 10, 2022
Adopted by Town Council June 7, 2022
Class
Code Classification Title Rate Type Range STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 9305 Account Clerk Temp/Hourly Hourly TE2-04 $26.75 $28.09 $29.49 $30.96 $32.51 $34.14 9310 Account Technician Temp/Hourly Hourly TE2-10 $32.14 $33.75 $35.44 $37.21 $39.07 $41.02 9300 Accountant Temp/Hourly Hourly TE2-17 $38.82 $40.76 $42.80 $44.94 $47.19 $49.55 9010 Admin Analyst Temp/Hourly Hourly TE2-17 $38.82 $40.76 $42.80 $44.94 $47.19 $49.55 9100 Admin Specialist Temp/Hourly Hourly TE2-10 $32.14 $33.75 $35.44 $37.21 $39.07 $41.02 9580 Administrative Assistant Temp/Hourly Hourly TE2-05 $29.22 $30.68 $32.21 $33.82 $35.51 $37.29 9105 Administrative Secretary Temp/Hourly Hourly TE2-09 $30.70 $32.24 $33.85 $35.54 $37.32 $39.19 9656 Assistant Engineer Temp/Hourly Hourly TE2-23 $43.99 $46.19 $48.50 $50.93 $53.48 $56.15 9655 Associate Civil Engineer Temp/Hourly Hourly TE2-24 $50.65 $53.18 $55.84 $58.63 $61.56 $64.64 9400 Associate Planner Temp/Hourly Hourly TE2-22 $43.82 $46.01 $48.31 $50.73 $53.27 $55.93 9410 Building Inspector Temp/Hrly Hourly TE2-23 $43.99 $46.19 $48.50 $50.93 $53.48 $56.15 9112 Clerical Aide Temp/Hourly Hourly TE2-01 $16.20 $17.01 $17.86 $18.75 $19.69 $20.67 9430 Code Compliance Officer Temp/Hourly Hourly TE2-16 $37.82 $39.71 $41.70 $43.79 $45.98 $48.28 9530 Communication Dispatcher Temp/Hourly Hourly TE2-19 9545 Crime Analyst Temp/Hourly Hourly TE2-18 $39.29 $41.25 $43.31 $45.48 $47.75 $50.14 9540 CSO Intern Temp/Hourly Hourly TE2-03 $24.02 $25.22 $26.48 $27.80 $29.19 $30.65 9532 CSO Temp/Hrly Hourly TE2-12 $34.43 $36.15 $37.96 $39.86 $41.85 $43.94 9190 Deputy Clerk Temp/Hourly Hourly TE2-04 $26.75 $28.09 $29.49 $30.96 $32.51 $34.14 9660 Engineering Technician Temp/Hourly Hourly TE2-13 $35.31 $37.08 $38.93 $40.88 $42.92 $45.07 9621 Equipment Mechanic Temp Hourly AF2-01 $35.68 $37.46 $39.33 $41.30 $43.37 $45.54 9720 Facility Attendant Temp/Hourly Hourly TE2-01 $16.20 $17.01 $17.86 $18.75 $19.69 $20.67 9109 Human Resources Specialist Temp/Hourly Hourly TE2-09 $30.70 $32.24 $33.85 $35.54 $37.32 $39.19 9041 Intern I Temp/Hourly Hourly TE2-02 $18.80 $19.74 $20.73 $21.77 $22.86 $24.00 9040 Intern II Temp/Hourly Hourly TE2-03 $24.02 $25.22 $26.48 $27.80 $29.19 $30.65 9200 IT Technician Temp/Hrly Hourly TE2-14 $35.37 $37.14 $39.00 $40.95 $43.00 $45.15 9605 Lead Parks & Maint Worker Hourly AF2-06 $37.37 $39.24 $41.20 $43.26 $45.42 $47.69 9015 Legal Assistant Temp/Hrly Hourly TE2-17 $38.82 $40.76 $42.80 $44.94 $47.19 $49.55 9810 Librarian Temp/Hourly Hourly TE2-15 $37.44 $39.31 $41.28 $43.34 $45.51 $47.79 9820 Library Assistant Temp/Hourly Hourly TE2-06 $28.54 $29.97 $31.47 $33.04 $34.69 $36.42 Temp 8% Page 1 of 2 Approved 6/7/2022
ATTACHMENT 3
Town of Los Gatos Temporary Classifications
Salary Schedule for Fiscal Year 2022/23
Effective July 10, 2022
Adopted by Town Council June 7, 2022
Class
Code Classification Title Rate Type Range STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 9840 Library Clerk Temp/Hourly Hourly TE2-04 $26.75 $28.09 $29.49 $30.96 $32.51 $34.14 9850 Library Page Temp/Hourly Hourly TE2-01 $16.20 $17.01 $17.86 $18.75 $19.69 $20.67 9830 Library Teen Services Specialist Hourly TE2-03 $24.02 $25.22 $26.48 $27.80 $29.19 $30.65 9600 Maintenance Assistant Hourly AF2-02 $17.96 $18.86 $19.80 $20.79 $21.83 $22.92 9900 Network Administrator Hourly TE2-21 $41.89 $43.98 $46.18 $48.49 $50.91 $53.46 9180 Office Assistant Temp/Hourly Hourly TE2-04 $26.75 $28.09 $29.49 $30.96 $32.51 $34.14 9645 Park Service Officer Aide Temp/Hourly Hourly TE2-03 $24.02 $25.22 $26.48 $27.80 $29.19 $30.65 9640 Park Service Officer Temp/Hourly Hourly TE2-12 $34.43 $36.15 $37.96 $39.86 $41.85 $43.94 9560 Parking Control Officer Temp/Hourly Hourly TE2-04 $26.75 $28.09 $29.49 $30.96 $32.51 $34.14 9620 Parks & Main Worker Temp Hourly AF2-04 $30.06 $31.56 $33.14 $34.80 $36.54 $38.37 9630 Parks & Main Worker Trainee Temp Hourly AF2-03 $24.57 $25.80 $27.09 $28.44 $29.86 $31.35 9440 Permit Technician Hourly TE2-11 $33.12 $34.78 $36.52 $38.35 $40.27 $42.28 9590 Police Officer Reserve (Top Step of Officer) Hourly TE2-25 9520 Police Officer Temp/Hourly Hourly TE2-25
9550 Police Records Specialist Temp/Hourly Hourly TE2-08 $29.94 $31.44 $33.01 $34.66 $36.39 $38.21 9000 Project Manager Hourly Mgmt $115.56
9650 Public Works Inspector Temp/Hourly Hourly TE2-20 $41.57 $43.65 $45.83 $48.12 $50.53 $53.06 9670 Senior Electrician Temp/Hourly Hourly TE2-23 $43.99 $46.19 $48.50 $50.93 $53.48 $56.15 9831 Senior Library Page Hourly TE2-02 $18.80 $19.74 $20.73 $21.77 $22.86 $24.00 9725 Special Event Attendant Hourly TE2-07 $17.96 $18.86 $19.80 $20.79 $21.83 $22.92 9610 Ticket Booth Attendant Hourly AF2-05 $16.20 $17.01 $17.86 $18.75 $19.69 $20.67 Reflects General Increase of 8%
Temp 8% Page 2 of 2 Approved 6/7/2022 Page 427
PREPARED BY: Salina Flores
Human Resources Director
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 06/07/2022
ITEM NO: 22
DESK ITEM
DATE: June 7, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Approve Cost of Living Increases for Unrepresented Management, Confidential, and Temporary/Hourly Employees; One-Time Non-PERSable Bonuses for Confidential and Management; and a 5% Market Adjustment for Confidential and Temporary/Hourly Employees
REMARKS:
Attachment contains public comments received between 11:00 a.m., Monday, June 6, 2022, and 11:01 a.m. Tuesday, June 7, 2022.
Attachments Previously Received with the Staff Report:
1. Salary Schedule for Management Effective July 10, 2022
2. Salary Schedule for Confidential Classifications Effective July 10, 2022
3. Salary Schedule for Temporary/Hourly Classifications Effective July 10, 2022 Attachment Received with this Desk Item:
4. Public comments received between 11:00 a.m., Monday, June 6, 2022, and 11:01 a.m.
Tuesday, June 7, 2022.
ATTACHMENT 4
From: Phil Koen
Sent: Tuesday, June 07, 2022 10:59 AM
To: Rob Rennie <[email protected]>; Matthew Hudes <[email protected]>; Mary Badame <[email protected]>; Maria Ristow <[email protected]>; Marico Sayoc <[email protected]>
Cc: Laurel Prevetti <[email protected]>; Shelley Neis <[email protected]>; Arn Andrews <[email protected]>; jvannada; Rick Van Hoesen; Lee Fagot; Catherine Somers Subject: Agenda items #19 - #22
Dear Honorable Mayor and Members of the Town Council,
The Los Gatos Community Alliance respectfully requests that Agenda items #19 through #22 be pulled from tonight’s consent calendar to allow for public discussion and increased transparency. We acknowledge that the terms of the various labor agreements are the result of a long negotiation process and want to thank all parties for their efforts in finding a solution. We want to also thank the Town Council for their hard work on this matter.
Issue
The reason for pulling these items revolves around the lack of transparency in the Staff report. While we understand labor negotiations are confidential and therefore little was disclosed during the process, it is then extremely important that the Staff report be comprehensive and fully transparent in detailing how the Town arrived at these results. This is particularly important when the only benchmark the public had regarding possible increases in salary and benefit expenditures for FY 23 was what was included in the preliminary budget. Clearly, what is being approved tonight is materially greater than what was in the preliminary budget.
Request for more information
The LGCA requests that Staff disclose the following additional information prior to any vote on agenda items #19 through #22:
1. What will be the total salary and benefit expenditures for FY 23 as previously reported on Schedules C-8, C-9, C-10, C-11, C-12, and C-13 after taking into effect all salary adjustments recommended in Agenda items #19-#22?
2. How is the $2,318,733 (increases to negotiated salary increases) being funded? Since the proposed FY 23 budget did not have an operating surplus, where are the additional sources of funds coming from to cover this increase? Please be specific.
3. A portion of the $2,318,733 expenditures are one-time in nature. How much are the “one- time payments” and how much will be recurring expenditures beyond FY 23?
4. Please disclose the initial offer letter from the Town to each of the bargaining units so the public has full transparency to the negotiating process. For sake of clarity, the City of San Jose releases to the public all correspondence between bargaining units once agreements have been reached and voted on by the bargaining units. It appears we are at that point.
5. If the Town does not use $902,579 of the OPEB 115 Trust Assets to “further balance the budget” what other funds could the Town tap to provide the required source of funding? Was this discussed and approved by the Town Council Trust Fund Committee? Thank you.
Phil Koen
LGCA
PREPARED BY: Erin Walters and Jocelyn Shoopman
Associate Planner and Associate Planner
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Community Development Director, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 06/07/2022
ITEM NO: 23
DATE: June 2, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Consider the Draft Site Inventory as Recommended by the Housing Element Advisory Board.
RECOMMENDATION:
Accept the Draft Site Inventory as recommended by the Housing Element Advisory Board (Attachment 1).
BACKGROUND:
The Housing Element of the General Plan must include an inventory of land suitable and available for residential development to meet the Town’s Regional Housing Need Allocation (RHNA) by income level. The Department of Housing and Community Development (HCD), with input from the Association of Bay Area Governments (ABAG), and Metropolitan Transportation Commission (MTC), determined the total RHNA for the 2023-2031 period. On December 16, 2021, the ABAG Executive Board adopted the Final RHNA Plan: San Francisco Bay Area, 2023- 2031. The allocation for the incorporated limits of Los Gatos is 1,993 units, which is distributed by income category, as shown in the table on the following page:
*AMI is Area Median Income
Income Group Number of Units
Very Low (0-50% AMI) 537
Low (50-80% AMI) 310
Moderate (80-120% AMI) 320
Above Moderate (120%+ AMI) 826
TOTAL 1,993
PAGE 2 OF 6
SUBJECT: Housing Element Draft Site Inventory
DATE: June 2, 2022
BACKGROUND (continued):
To ensure that sufficient capacity exists in the Housing Element to accommodate the RHNA throughout the eight-year planning period, HCD recommends that jurisdictions create a buffer in the Housing Element inventory of at least 15 percent more capacity than required, especially for capacity to accommodate the lower income RHNA groups. The amount of buffer can be relative to the degree of certainty of development for specific sites, among other potential factors. The chart below depicts the HCD recommended target numbers.
RHNA Allocation 1,993 units
Buffer (15 percent) 299 units
RHNA + Buffer Total 2,292 units
DISCUSSION:
At the April 21, 2022, and May 5, 2022, Housing Element Advisory Board (HEAB) meetings, the HEAB received public comments and began the review of identifying sites for potential inclusion in the Draft Site Inventory, including the following areas of the Town:
A. Downtown
B. North Santa Cruz Avenue
C. Los Gatos Lodge
D. Los Gatos Boulevard
E. North Forty
F. Lark Avenue
G. Winchester Boulevard
H. Pollard Road
I. Union Avenue
J. Harwood Road
The staff report and attachments for the April 21, 2022, HEAB meeting can be viewed in the following link:
https://www.losgatosca.gov/AgendaCenter/ViewFile/Agenda/_04212022-2071 The staff report and attachment for the May 5, 2022, HEAB meeting can be viewed in the following link:
https://www.losgatosca.gov/AgendaCenter/ViewFile/Agenda/_05052022-2077 Given the HCD guidance, sites were identified in three tiers. Tier 1 represented the most likely opportunities. Tier 2 represented possible back up sites. Tier 3 had additional constraints and were still worth considering as potential Housing Element sites.
PAGE 3 OF 6
SUBJECT: Housing Element Draft Site Inventory
DATE: June 2, 2022
DISUSSION (continued):
Sites selected for the Tier 1 site list were based on the following criteria:
1. Gross lot area in excess of half an acre;
2. Zoning;
3. Draft General Plan land use designation;
4. Property Owner Interest Form;
5. Previous interest in residential development by the property owner; and
6. Sites included in the current Housing Element.
On May 19, 2022, the HEAB recommended that the sites included in the Tier 1 site list (Attachment 4), with the following three modifications be included in the Draft Site Inventory:
1. Reduce the number of housing units in the North Forty;
2. Add the site located at 206 Knowles Drive; and
3. Add the California Department of Transportation Right of Way land off of Oka Road.
An update of the Tier 1 site list with these modifications is included as Attachment 1 for the Town Council’s consideration.
Since the May 19, 2022, HEAB meeting, the Town received one additional Property Owner Interest Form for the property located at 15795 Los Gatos Boulevard. The site had previously been included in the Tier 2 site list; however, based on the property owner’s interest in a residential development, the Tier 1 site list and recommended Draft Site Inventory has been modified to include this site (Attachment 1). Staff expects the Tier 1 site list to be updated periodically throughout the Housing Element process based on additional Property Owner Interest Forms which may be submitted.
Staff also received a letter from the property owner for 15827 Los Gatos Boulevard requesting to be removed from the Draft Site Inventory as they have no interest in a future residential development. The Tier 2 site list has been modified to remove the site (Attachment 2).
The table below summarizes the total number of potential housing units (2,046 units) based on the Draft Site Inventory (Attachment 1). The table also includes the Town’s average production of Accessory Dwelling Units (ADUs) over the eight-year planning period for an estimated total of 200 housing units as well as approximately 202 housing units associated with approved or pending Planning entitlements. Combined, this results in 2,448 units, exceeding the RHNA (1,993 units) and the recommended 15 percent buffer (299 units) by 156 units.
PAGE 4 OF 6
SUBJECT: Housing Element Draft Site Inventory
DATE: June 2, 2022
DISUSSION (continued):
Draft Tier 1
Number of Units
Tier 1 Sites 2,046 units
ADUs 200 units
Pipeline Projects 202 units
Total 2,448 units
Tier 2 and Tier 3 Sites
The remaining sites identified through the initial HEAB discussions on April 21, 2022, and May 5, 2022, were further distributed into Tier 2 and Tier 3 categories. Tier 2 sites have been identified as possible sites to consider adding to Tier 1, if required, and generally fall into one or more of the following categories (Attachment 2):
1. Gross lot area in excess of half an acre (majority);
2. Shopping Centers with long-term tenants;
3. Churches;
4. Town Parking Lots;
5. Banks; and
6. Sites less likely to develop housing.
Additional sites that can be potentially considered by Council for inclusion in the Draft Site Inventory site list are highlighted in pink in Attachment 2.
Tier 3 sites have been identified as the least likely for new housing development based on the following criteria (Attachment 3):
1. Gross lot area less than half an acre;
2. Gross lot area greater than 10-acres;
3. Not zoned for residential use; and
4. Sites with active Planning applications for commercial development.
Income Distribution
The distribution of the income categories, as recommended by the HEAB was based on the following methodology:
1. For sites with a Draft 2040 General Plan maximum density of 40 dwelling units per acre, the income category was distributed at 50 percent for very-low income, 25 percent for low income, 25 percent for moderate income, and zero percent for above moderate income.
PAGE 5 OF 6
SUBJECT: Housing Element Draft Site Inventory
DATE: June 2, 2022
DISUSSION (continued):
2. For sites with a Draft 2040 General Plan maximum density of less than 40 dwelling units, but result in more than 50 dwelling units, the income category was distributed at 25 percent for very-low income, 15 percent for low income, 15 percent for moderate income, and 45 percent for above moderate income.
3. Any other sites that do not meet the criteria described above have been placed in above moderate income.
While the Tier 1 initial income distribution assumptions do not result in sufficient sites for the above moderate-income category, staff expects through upcoming review the assumptions will be adjusted.
Council Discussion
The following questions are provided to guide the Council in their discussion of whether the sites identified in the Tier 1 site list are appropriate to include in the Draft Site Inventory:
1. What sites, if any, should be removed from Tier 1?
2. Are there additional sites that should be added to Tier 1?
3. Should the income category distribution for Tier 1 be modified? NEXT STEPS:
On June 16, 2022, the HEAB will begin review and discussion of policy and program development for the Housing Element.
CONCLUSION:
Staff recommends that the Council accept the sites included in Tier 1 as recommended by the HEAB for the Draft Site Inventory (Attachment 1).
COORDINATION:
The Community Development Department coordinated with the Offices of the Town Attorney and Town Manager in the preparation of this report.
ENVIRONMENTAL ASSESSMENT:
Accepting the Draft Site Inventory is not a project as defined by CEQA. Environmental analysis relating to the entire Draft Housing Element, which will include the Draft Site Inventory, will be completed in accordance with CEQA requirements.
PAGE 6 OF 6
SUBJECT: Housing Element Draft Site Inventory
DATE: June 2, 2022
Attachments:
1. HEAB Recommended Draft Site Inventory
2. Revised Draft Tier 2 Sites
3. Draft Tier 3 Sites
4. May 19, 2022, Housing Element Advisory Board Staff Report (with Attachments 1-5)
5. May 19, 2022, Housing Element Advisory Board Desk Item Report (with Attachment 6)
Address APN
Parcel Size
(Gross Acres)
Draft 2040
General Plan
du/ac
Draft 2040 General Plan Land
Use Designation
Zoning Use
Very LowIncome
Capacity
Low-Income
Capacity
ModerateIncome
Capacity
Above
Moderate
Income
Capacity
Total
A - Downtown Area
50 Park Ave. 52901040 0.18 24 Medium Density Residential R-1D Multi-family
Residential 21 21
61 Montebello Way 52901041 0.69 24 Medium Density Residential R-1D Multi-family
Residential
A-3 101 S. Santa Cruz Ave. 52901022 0.80 30 Central Business District C-2 Post Office 24 24 A-7 165 Los Gatos Saratoga Rd. 52904083 0.37 30 Central Business District C-2 Vacant Building 11 11 B - North Santa Cruz Avenue Area
404 N. Santa Cruz Ave. 52907099 0.84 30 Neighborhood Commercial C-1 Los Gatos Shopping
Center
17 10 10 30 67
52907003 0.25 30 Neighborhood Commercial C-1
Los Gatos Shopping
Center
430 N. Santa Cruz Ave. 52907004 0.22 30 Neighborhood Commercial C-1 Los Gatos Shopping
Center
432 N. Santa Cruz Ave. 52907094 0.93 30 Neighborhood Commercial C-1 Los Gatos Shopping
Center
C - Los Gatos Lodge Area
50 Los Gatos Saratoga Rd. 52924032 7.04 40 Mixed Use Commercial CH:PD Los Gatos Lodge 176 88 88 352 52924001 1.49 40 Mixed Use Commercial CH:PD Los Gatos Lodge 52924003 0.28 40 Mixed Use Commercial CH:PD Los Gatos Lodge D - Los Gatos Boulevard Area
D-1 15300 Los Gatos Blvd. 42417036 1.60 40 Mixed Use Commercial C-1 Ace Hardware 32 16 16 64 15349 Los Gatos Blvd. 42419049 0.34 40 Mixed Use Commercial CH Retail 57 29 29 115 15367 Los Gatos Blvd. 42419048 1.20 40 Mixed Use Commercial CH Genuine Automotive 15405 Los Gatos Blvd. 42419069 1.34 40 Mixed Use Commercial CH Multi-Tenant Building D-5 15425 Los Gatos Blvd. 42419067 1.09 40 Mixed Use Commercial CH Multi-Tenant Building 22 11 11 44 A-2
D-4
Tier 1 - Los Gatos Housing Element Update - Draft Site Selection 6th Cycle (2023-2031)
B-1
C-1
Draft 2040 General Plan Density
ATTACHMENT 1
Address APN
Parcel Size
(Gross Acres)
Draft 2040
General Plan
du/ac
Draft 2040 General Plan Land
Use Designation
Zoning Use
Very LowIncome
Capacity
Low-Income
Capacity
ModerateIncome
Capacity
Above
Moderate
Income
Capacity
Total
Los Gatos Blvd. 52302005 0.53 40 Mixed Use Commercial C-1 Nob Hill Shopping
Center 68 33 33 134
16535 Camellia Ter. 52302006 2.81 40 Mixed Use Commercial C-1 Nob Hill Shopping
Center
D-16 15795 Los Gatos Blvd. 52915059 0.64 40 Mixed Use Commercial CH Affordable Treasures 14 6 6 26 D-26 16203 Los Gatos Blvd. 52916069 0.79 40 Mixed Use Commercial CH Multi-Tenant Building 16 8 8 32 16492 Los Gatos Blvd. 53207086 0.23 20 Neighborhood Commercial C-1 LG Wines & Liquors 12 12 53207085 0.38 20 Neighborhood Commercial C-1 Vacant
E - North Forty Area
14859 Los Gatos Blvd. 42407094 2.90 13 North Forty Specific Plan Area North Forty Specific Plan Area 50 30 30 90 200 16392 Los Gatos Blvd. 42407095 0.78 13 North Forty Specific Plan Area North Forty Specific Plan Area 16260 Burton Rd. 42407053 0.44 13 North Forty Specific Plan Area North Forty Specific Plan Area 16250 Burton Rd. 42407009 0.44 13 North Forty Specific Plan Area North Forty Specific Plan Area 14917 Los Gatos Blvd. 42407081 3.74 13 North Forty Specific Plan Area North Forty Specific Plan Area 14925 Los Gatos Blvd. 42407115 6.07 13 North Forty Specific Plan Area North Forty Specific Plan Area 42407116 1.02 13 North Forty Specific Plan Area North Forty Specific Plan Area 42406115 1.17 20 North Forty Specific Plan Area North Forty Specific Plan Area 26 26 42406116 0.11 20 North Forty Specific Plan Area North Forty Specific Plan Area E-3 42407010 0.26 20 North Forty Specific Plan Area North Forty Specific Plan Area 5 5 E-4 42407052 0.43 20 North Forty Specific Plan Area North Forty Specific Plan Area 9 9 42407054 0.26 20 North Forty Specific Plan Area North Forty Specific Plan Area 16 16 42407063 0.56 20 North Forty Specific Plan Area North Forty Specific Plan Area E-6 42407064 0.93 20 North Forty Specific Plan Area North Forty Specific Plan Area 19 19 E-7 42407065 0.37 20 North Forty Specific Plan Area North Forty Specific Plan Area 7 7 F - Lark Avenue Area
42408057 2.97 12 Low Density Residential R-1:8 Vacant 62 37 37 111 247 42408029 0.31 12 Low Density Residential R-1:8 Vacant
42408059 1.01 12 Low Density Residential R-1:8 Vacant
42408060 1.29 12 Low Density Residential R-1:8 Vacant
42408058 1.41 12 Low Density Residential R-1:8 Single-Family Home 42408017 2.48 24 Medium Density Residential R-M:5-12 Single-Family Home 42408021 4.32 24 Medium Density Residential R-M:5-12 Vacant F-2 42408074 6.41 12 Low Density Residential R-1:8 Vacant 19 12 12 34 77 F-3 Cal Trans Parcel N/A 4.90 24 Medium Density Residential Re-zone to R-M:5-12 Cal Trans ROW 29 18 18 53 118 Draft 2040 General Plan Density
E-1 N40
Phase II
E-2
E-5
F-1
D-9
D-29
Address APN
Parcel Size
(Gross Acres)
Draft 2040
General Plan
du/ac
Draft 2040 General Plan Land
Use Designation
Zoning Use
Very LowIncome
Capacity
Low-Income
Capacity
ModerateIncome
Capacity
Above
Moderate
Income
Capacity
Total
G- Winchester Boulevard Area
G-1 110 Knowles Dr. 42432077 7.34 40 High Density Residential CM:AHOZ Office 59 59 88 88 294 G-3 (New) 206 Knowles Dr. 42432076 2.41 40 High Density Residential CM Office 48 24 24 96 I - Union Avenue Area
440 Los Gatos Alamden Rd. 52749048 0.52 20 Neighborhood Commercial C-1 Chevron 16 16 445 Leigh Ave. 52749049 0.29 20 Neighborhood Commercial C-1 Office J - Harwood Road Area
J-1 14000 Blossom Hill Rd. 52732028 0.69 20 Neighborhood Commercial C-1 Valero 14 14 Subtotal 669 381 410 586 2,046
ADUs 20 60 60 60 200
Pipeline projects 202 202
TOTAL 689 441 470 848 2,448
RHNA Requirements 537 310 320 826 1,993
Buffer (15 percent) 81 46 48 124 299
RHNA + Buffer Total 618 356 368 950 2,292
Difference 71 85 102 -102 156
Draft 2040 General Plan Density
I-1
Address APN
Parcel Size
(Gross
Acres)
Draft 2040
General Plan
du/ac
Draft 2040 General Plan Land Use
Designation
Zoning Use
Very LowIncome
Units
Low-Income
Units
ModerateIncome Units
Above
Moderate
Income Units
Total
A - Downtown Area
A-1 50 University Ave. 52902044 4.50 30 Central Business District C-2:LHP:PD Shopping Center 34 20 20 61 135 A-4 51044039 0.65 30 Central Business District C-2 Town Parking Lot 20 20 A-5 16 Lyndon Ave. 51044044 0.23 30 Central Business District C-2 Gym 7 7 A-6 W Main St. 51044069 0.37 30 Central Business District C-2 Town Parking Lot 11 11 A-15 46 E. Main St. 52929005 0.78 30 Central Business District C-2 Hotel 23 23 A-16 11 College Ave. 52929052 0.93 30 Central Business District C-2 Multi-Tenant Building 28 28 A-17 15 Montebello Way 52901043 1.56 30 Central Business District C-2 Frontier 47 47 A-18 52903029 0.94 30 Central Business District C-2:LHP Town Parking Lot 28 28 A-19 52903067 1.55 30 Central Business District C-2 Town Parking Lot 47 47 A-21 52904101 0.77 30 Central Business District C-2 Town Parking Lot 23 23 A-22 52904082 1.10 30 Central Business District C-2 Town Parking Lot 33 33 A-23 170 Los Gatos Saratoga Rd. 52907060 1.45 30 Central Business District C-2 Town Parking Lot 44 44 A-24 150 N. Santa Cruz Ave. 52903045 0.76 30 Central Business District C-2 Wells Fargo 23 23 A-27 333 N. Santa Cruz Ave. 51014072 0.81 30 Central Business District C-2 Bank of America 24 24 20 Univeristy Ave. 52902010 0.41 30 Central Business District C-2:LHP St. Luke's Church 23 52902009 0.34 30 Central Business District C-2:LHP St. Luke's Church A-30 111 Church St. 52928029 2.37 24 Medium Density Residential R-M:5-12 Methodist Church 14 9 9 25 57 A-31 219 Bean Ave. 51044083 0.97 24 Medium Density Residential R-1D:PD St. Mary's Church 23 23 A-32 238 E. Main St. 52934095 0.72 20 Neighborhood Commercial C-1 First Church 14 14 A-33 57 Broadway 51045081 0.29 24 Medium Density Residential R-1D:LHP Seventh Day Adventist 7 7 A-34 540 N. Santa Cruz Ave. 52907095 0.87 20 Neighborhood Commercial C-1 Sarah Shopping Center 17 17 120 S. Santa Cruz Ave. 51045064 0.45 30 Central Business District C-2:PD Toll House Hotel 14 8 8 24 140 S. Santa Cruz Ave. 51045065 1.36 30 Central Business District C-2:PD Toll House Hotel B - North Santa Cruz Avenue Area
421 N. Santa Cruz Ave. 41016011 1.29 30 Community Commercial C-1 Walgreens Shopping Center 16 10 10 29 65 421 N. Santa Cruz Ave. 41016014 0.08 30 Community Commercial C-1 Walgreens Shopping Center 433 N. Santa Cruz Ave. 41016010 0.78 30 Community Commercial C-1 Walgreens Shopping Center B3 600 N. Santa Cruz Ave. 52910122 1.55 30 Community Commercial C-1 DMV 47 47 B4 101 Blossom Hill Rd. 52911036 1.07 40 Office Professoinal O Office Building 21 11 11 43 A-37
54 B2
Tier 2 - Los Gatos Housing Element Update - Draft Site Selection 6th Cycle (2023-2031)
Draft 2040 General Plan Density
A-29
23 ATTACHMENT 2
Address APN
Parcel Size
(Gross
Acres)
Draft 2040
General Plan
du/ac
Draft 2040 General Plan Land Use
Designation
Zoning Use
Very LowIncome
Units
Low-Income
Units
ModerateIncome Units
Above
Moderate
Income Units
Total
D - Los Gatos Boulevard Area
D-2 15466 Los Gatos Blvd. 42415044 3.77 40 Mixed Use Commercial CH Los Gatos Village Square 75 38 38 151 15480 Los Gatos Blvd. 42414034 0.56 40 Mixed Use Commercial CH Car Dealership 90 44 44 178 15500 Los Gatos Blvd. 42414035 3.88 40 Mixed Use Commercial CH Car Dealership D-6 15445 Los Gatos Blvd. 42419068 1.53 40 Mixed Use Commercial CH Trilogy Gym 31 15 15 61 D-7 15475 Los Gatos Blvd. 42419065 1.34 40 Mixed Use Commercial CH McDonald's 28 13 13 54 D-8 15495 Los Gatos Blvd. 42422030 3.85 40 Mixed Use Commercial CH Multi-Tenant Building 76 39 39 154 D-11 15665 Los Gatos Blvd. 42421056 0.90 40 Mixed Use Commercial C-1 Jiffy Mart & Liquor 18 9 9 36 D-12 15721 Los Gatos Blvd. 42421058 0.93 40 Mixed Use Commercial CH Sunbelt Rentals 19 9 9 37 D-15 15771 Los Gatos Blvd. 42421049 0.51 40 Mixed Use Commercial CH Jack in the box 10 5 5 20 15920 Los Gatos Blvd. 52301011 1.05 40 Mixed Use Commercial C-1 Cornerstone Shopping Center 101 50 50 201 15986 Los Gatos Blvd. 52301012 0.82 40 Mixed Use Commercial C-1 Cornerstone Shopping Center 16000 Los Gatos Blvd. 52301013 2.71 40 Mixed Use Commercial C-1 Cornerstone Shopping Center 16002 Los Gatos Blvd. 52301014 0.44 40 Mixed Use Commercial C-1 Cornerstone Shopping Center D-19 620 Blossom Hill Rd. 52916041 2.64 40 Mixed Use Commercial CH Luxury Car Dealers 54 26 26 106 D-20 16151 Los Gatos Blvd. 52916040 3.55 40 Mixed Use Commercial CH Los Gatos Acura Dealership 70 36 36 142 D-25 16185 Los Gatos Blvd. 52916074 0.88 40 Mixed Use Commercial CH Multi-Tenant Building 17 9 9 35 700 Blossom Hill Rd. 52306046 0.47 40 Mixed Use Commercial C-1 Kings Court Shopping Center 156 78 78 312 750 Blossom Hill Rd. 52306045 6.77 40 Mixed Use Commercial C-1 Kings Court Shopping Center 16100 Los Gatos Blvd. 52306035 0.56 40 Mixed Use Commercial C-1 Kings Court Shopping Center D-31 16330 Los Gatos Blvd. 53206075 7.48 20 Low Density Residential R-1:8 Calvary Church 37 22 22 69 150 D-32 15166 Los Gatos Blvd. 42417042 2.36 40 Mixed Use Commercial CH Office Depot 46 24 24 94 15595 Los Gatos Blvd. 42422035 0.10 40 Mixed Use Commercial C-1 Multi-Tenant Building 17 9 9 35 15585 Los Gatos Blvd. 42422034 0.12 40 Mixed Use Commercial C-1 Multi-Tenant Building 4242299 0.65 40 Mixed Use Commercial C-1 Multi-Tenant Building D-35 15575 Los Gatos Blvd. 42422033 0.92 40 Mixed Use Commercial CH Multi-Tenant Building 19 9 9 37 D-36 15553 Los Gatos Blvd. 42422027 0.97 40 Mixed Use Commercial CH Wheel Works 19 10 10 39 D-37 15879 Los Gatos Blvd. 52915084 0.71 40 Mixed Use Commercial CH Citi Bank 14 7 7 28 G- Winchester Boulevard Area
G-2 14101 Winchester Blvd. 40630015 4.44 30 Community Commercial C-1 Vasona Station Shopping Center 33 20 20 60 133 G-3 206 Knowles Dr. 42432076 2.41 40 High Density Residential CM Office H - Pollard Road Area
H-1 1514 Pollard Rd. 40733017 0.38 20 Neighborhood Commercial C-1 Safeway Shopping Center 8 8 H-2 1500 Pollard Rd. 40733016 2.26 20 Neighborhood Commercial C-1 Safeway Shopping Center 45 45 D-18
D-27
Draft 2040 General Plan Density
D-3
D-34
Address APN
Parcel Size
(Gross
Acres)
Draft 2040
General Plan
du/ac
Draft 2040 General Plan Land Use
Designation Zoning Use
Very LowIncome
Units
Low-Income
Units
ModerateIncome Units
Above
Moderate
Income Units
Total
H-3 1440 Pollard Rd. 40733024 3.12 20 Neighborhood Commercial C-1 Safeway Shopping Center 16 9 9 28 62 I - Union Avenue Area
15521 Union Ave. 52341035 0.50 30 Community Commercial C-1 Downing Shopping Center 47 28 28 86 189 15525 Union Ave. 52341036 5.80 30 Community Commercial C-1 Downing Shopping Center 15066 Los Gatos Almaden Rd. 52341012 0.61 20 Neighborhood Commercial O Office Building 19 52341011 0.36 20 Neighborhood Commercial O Office Building J - Harwood Road Area
J-2 14010 Blossom Hill Rd. 52732031 4.15 20 Neighborhood Commercial C-1 Blossom Hill Square Shopping Center 21 12 12 38 83 J-3 13980 Blossom Hill Rd. 56764010 0.53 20 Neighborhood Commercial C-1 Physical Therapy Building 11 11 J-4 14184 Blossom Hill Rd. 52732030 1.69 20 Neighborhood Commercial C-1 U.S. Bank 34 34 K - E. Main Street Area
K-2 10 Jackson St. 52934018 0.78 30 Community Commercial C-1 Multi-Tenant Building 23 23 L - Alberto Way Area
L-1 475 Alberto Way 52921999 5.17 40 Office Professional O:PD Offfice Building 103 52 52 207 M - Churches
M-1 16575 Shannon Rd. 52305002 5.28 12 Low Density Residential R-1:8 Presbyterian Church 16 10 10 27 63 M-2 16548 Ferris 53207127 2.24 12 Low Density Residential R-1:8 Faith Lutheran Church 27 27 M-4 15985 Rose Ave. 41020045 3.90 12 Low Density Residential R-1:8 The Church of Jesus Christ Latter Day
Saints 47 47
M-5 15885 Los Gatos Almaden Rd. 42113056 2.30 40 Office Professional R-1:8 Holy Cross Lutheran Church 46 23 23 92 M-6 15980 Blossom Hill Rd. 52309003 0.51 12 Low Density Residential R-1:8 Unitarian Universalist Fellowship LG 6 6 Subtotal 1278 664 664 1156 3762
ADUs 20 60 60 60 200
Pipeline projects 202 202
TOTAL 1298 724 724 1418 4164
RHNA Requirements 537 310 320 826 1993
Buffer (15 percent) 81 46 48 124 299
RHNA + Buffer Total 618 356 368 950 2292
Difference 680 368 356 468 1872
I-2
Draft 2040 General Plan Density
I-3 19
Address APN
Parcel Size
(Gross Acres)
Draft 2040
General Plan
du/ac
Draft 2040 General Plan Land
Use Designation Zoning Use
Very LowIncome UnitsLow-Income
Units
ModerateIncome Units
Above
Moderate
Income Units
Total
A - Downtown Area
A-8 101 E. Main St. 52928007 0.24 30 Central Business District C-2 Private Parking Lot 7 7 A-9 111 E. Main St. 52928006 0.17 30 Central Business District C-2 Summit Bicycles 5 5 A-10 123 E. Main St. 52928005 0.29 30 Central Business District C-2 LGS Recreation 9 9 A-11 E. Main St. 52928004 0.11 30 Central Business District C-2 Private Parking Lot 3 3 A-12 131 E. Main St. 52928003 0.25 30 Central Business District C-2 Masonic Hall Church 8 8 143 E. Main St. 52928002 0.29 30 Central Business District C-2 Multi-Tenant Building 9 9 151 E. Main St. 52928001 0.13 30 Central Business District C-2 Multi-Tenant Building 4 4 A-14 66 E. Main St. 52929049 0.25 30 Central Business District C-2 Gym 7 7 A-20 52903048 0.45 30 Central Business District C-2 Town Parking Lot 14 14 A-25 127 N. Santa Cruz Ave. 51017090 0.38 30 Central Business District C-2 US Bank 11 11 A-26 308 N. Santa Cruz Ave. 52904035 0.35 30 Central Business District C-2 Bank of the West 10 10 A-28 275 Saratoga-Los Gatos Rd. 51014076 0.33 30 Central Business District C-2 First Republic Bank 10 10 A-35 100 S. Santa Cruz Ave. 51045061 0.47 30 Central Business District C-2 Multi-Tenant Building 14 14 A-36 110 S. Santa Cruz Ave. 51045089 0.33 30 Central Business District C-2 Rural Supply 10 10 A-38 142 S. Santa Cruz Ave. 51045090 0.18 30 Central Business District C-2 Office Building 5 5 D - Los Gatos Boulevard Area
D-13 15737 Los Gatos Blvd. 42421050 0.37 40 Mixed Use Commercial CH Classic Burgers 7 4 4 15 D-14 15751 Los Gatos Blvd. 42421048 0.39 40 Mixed Use Commercial CH Goodyear Auto Service 8 4 4 16 D-21 16165 Los Gatos Blvd. 52916050 0.25 40 Mixed Use Commercial CH Multi-Tenant Building 4 3 3 10 D-22 52916075 0.13 40 Mixed Use Commercial CH Private Parking Lot 3 1 1 5 D-23 16121 Los Gatos Blvd. 52916049 0.16 40 Mixed Use Commercial CH Single-Family Home 2 2 2 6 16905 Roberts Rd. 52916009 0.30 40 Mixed Use Commercial CH Multi-Tenant Building 9 4 4 17 16905 Roberts Rd. 52916044 0.12 40 Mixed Use Commercial CH Multi-Tenant Building D-28 16250 Los Gatos Blvd. 53206057 0.28 40 Mixed Use Commercial C-1 Orange Theory 5 3 3 11 D-30 15380 Los Gatos Blvd. 42417001 0.34 40 Mixed Use Commercial C-1 Mobil Gas Station 8 3 3 14 D-33 15643 Los Gatos Blvd. 42422031 0.34 40 Mixed Use Commercial CH SpeeDee Oil Change 14 14 F - Lark Avenue Area
F-3 987 University Ave. 42431043 1.83 0 Light Industrial CM Multi-Tenant Building F-4 985 University Ave. 42431067 2.63 0 Light Industrial CM Multi-Tenant Building F-5 983 University Ave. 42430117 5.99 0 Light Industrial CM Multi-Tenant Building Tier 3 - Los Gatos Housing Element Update - Draft Site Selection 6th Cycle (2023-2031)
A-13
D-24
Draft 2040 General Plan Density
ATTACHMENT 3 Page 444
Address APN
Parcel Size
(Gross Acres)
Draft 2040
General Plan
du/ac
Draft 2040 General Plan Land
Use Designation Zoning Use
Very LowIncome UnitsLow-Income
Units
ModerateIncome Units
Above
Moderate
Income Units
Total
F-6 973 University Ave. 42430118 1.33 0 Light Industrial CM Silicon Valley Medical
Development
F-7 950 University Ave. 42431065 1.31 0 Light Industrial CM:PD Extra Space Storage F-8 980 University Ave. 42431027 4.20 0 Light Industrial CM Cryptic F-9 16780 Lark Ave. 42431035 2.20 0 Light Industrial CM Multi-Tenant Building F-10 16735 Lark Ave. 42408067 1.86 24 Medium Density Residential R-1:8 Church 45 45 K - E. Main Street Area
K-1 6 Los Gatos Blvd. 5298033 0.29 30 Community Commercial C-1 Dental Building 9 9 K-3 280 E. Main St. 52934063 0.22 30 Community Commercial C-1 7-Eleven 7 7 M - Churches
M-3 16845 Hicks Rd. 56723043 13.07 1 Hillside Residential HR-1 Venture Christian Church 13 13 Address APN
Parcel Size
(Gross Acres)
Draft 2040
General Plan
du/ac
Draft 2040 General Plan Land
Use Designation Zoning Use
Very LowIncome UnitsLow-Income
Units
ModerateIncome Units
Above
Moderate
Income Units
Total
Subtotal 46 24 24 213 307
ADUs 20 60 60 60 200
Pipeline projects 202 202
TOTAL 66 84 84 475 709
RHNA Requirements 537 310 320 826 1,993
Buffer (15 percent) 81 46 48 124 299
RHNA + Buffer Total 618 356 368 950 2,292
Difference -552 -272 -284 -475 -1,583
Draft 2040 General Plan Density
Draft 2040 General Plan Density
PREPARED BY: ERIN WALTERS AND JOCELYN SHOOPMAN
Associate Planner and Associate Planner
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
MEETING DATE: 05/19/2022
ITEM NO: 1
TOWN OF LOS GATOS
HOUSING ELEMENT ADVISORY BOARD REPORT
DATE: May 13, 2022
TO: Housing Element Advisory Board
FROM: Joel Paulson, Community Development Director
SUBJECT: Review and Discussion of the Housing Element Site Inventory BACKGROUND:
The Housing Element of the General Plan must include an inventory of land suitable and available for residential development to meet the Town’s Regional Housing Need Allocation (RHNA) by income level. The purpose of the Housing Element’s site inventory is to identify and analyze specific land (sites) that is available and suitable for residential development in order to determine the jurisdiction’s capacity to accommodate residential development and reconcile that capacity with the Town’s RHNA.
The Department of Housing and Community Development (HCD), with input from the Association of Bay Area Governments (ABAG), and Metropolitan Transportation Commission (MTC), determined the total RHNA for the 2023-2031 period. On December 16, 2021, the ABAG Executive Board adopted the Final RHNA Plan: San Francisco Bay Area, 2023-2031. Los Gatos's allocation is 1,993 units, which is broken down by income category, as shown in the table below:
Income Group Number of Units
Very Low (0-50% AMI) 537
Low (50-80% AMI) 310
Moderate (80-120% AMI) 320
Above Moderate (120%+ AMI) 826
TOTAL 1,993
*AMI is Area Median Income
To ensure that sufficient capacity exists in the Housing Element to accommodate the RHNA throughout the eight-year planning period, HCD recommends that jurisdictions create a buffer in the Housing Element inventory of at least 15 percent more capacity than required, especially for ATTACHMENT 4
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SUBJECT: Review and Discussion of the Housing Element Site Inventory May 13, 2022
N:\DEV\HEAB\2021-2023\HEAB Staff Reports and Attachments\2022\05-19-2022\Item 1 - Housing Element Sites Inventory and Income Categories\Item1.Staff Report.docx
BACKGROUND (continued):
capacity to accommodate the lower income RHNA groups. The amount of buffer can be relative to the degree of certainty of development for specific sites, among other potential factors.
At the April 21, 2022, and May 5, 2022, Housing Element Advisory Board (HEAB) meetings, the HEAB received public comments and began the review of identifying sites for potential inclusion in the Initial Draft Site Inventory including the following districts:
A. Downtown District
B. North Santa Cruz Avenue District
C. Los Gatos Lodge District
D. Los Gatos Boulevard District
E. North Forty District
F. Lark Avenue District
G. Winchester Boulevard District
H. Pollard Road District
I. Union Avenue District
J. Harwood Road District
DISCUSSION:
In reviewing the HEAB’s recommended sites and feedback, staff utilized the Housing Element Site Inventory Guidebook, created by HCD, a document designed to assist jurisdictions with the Site Inventory Analysis required by Housing Element law (Attachment 1). This initial work involves identifying sites that may have the potential for new residential development within the eight-year timeframe of the Housing Element planning period. Types of sites include:
1. Vacant and non-vacant sites zoned for residential use;
2. Vacant and non-vacant sites zoned for nonresidential use that allow residential development (mixed-use);
3. Nonresidential sites in the 2040 Draft General Plan Community Place Districts;
4. Projects that have residential planning entitlements and have not received building permits; and
5. Sites on which the property owner has expressed or previously expressed interest in residential or mixed-use redevelopment.
Staff divided the HEAB’s Initial Draft Site Inventory into three tiers based on the HCD checklist, property size, Zoning, General Plan land use designation, recently developed, environmental constraints, public feedback, and Property Owner Interest forms that have been submitted to the Town.
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SUBJECT: Review and Discussion of the Housing Element Site Inventory May 13, 2022
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DISCUSSION (continued):
Attachments 2 through 4 provide a comprehensive list of the sites included in each tier with the following information:
1. Address;
2. Assessor’s Parcel Number;
3. Parcel size;
4. Proposed Draft 2040 General Plan density;
5. Number of potential housing units based on the proposed Draft General Plan density; and
6. Draft income category distribution of units for each site.
Tier 1 Sites
Based on the HEAB’s recommendations, staff selected sites for Tier 1 based on the following criteria (Attachment 2):
• Gross lot area in excess of half an acre;
• Zoning;
• Draft General Plan land use designation;
• Property Owner Interest Form;
• Previous interest in residential development by the property owner; and • Sites included in the current Housing Element.
The table below summarizes the total number of potential housing units utilizing the sites identified in Tier 1 (Attachment 2). The table also includes the Town’s average production of Accessory Dwelling Units (ADU) over the eight-year planning period for an estimated total of 200 housing units. Lastly, the table includes approximately 202 housing units associated with approved or pending Planning entitlements.
Draft Tier 1
Number of Units
Tier 1 Sites 1,914 units
ADUs 200 units
Pipelines Projects 202 units
Total 2,316 units
RHNA Allocation 1,993 units
Buffer (15 percent) 299 units
RHNA + Buffer Total 2,292 units
The total number of housing units yielded from the Draft Tier 1 sites (1,914), the projected number of ADU’s (200), and pipeline projects (202) combined meet the RHNA for the Town
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SUBJECT: Review and Discussion of the Housing Element Site Inventory May 13, 2022
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DISCUSSION (continued):
for the sixth cycle Housing Element, including the 15 percent buffer, as recommended by HCD.
The number of housing units included in Tier 1, ADU’s, and pipeline projects exceeds the RHNA plus buffer by 23 units.
Tier 2 and Tier 3 Sites
Staff further distributed the sites recommended by the HEAB into two additional categories, Tier 2 and Tier 3.
Tier 2 sites have been identified as possible sites to consider adding to Tier 1, if necessary, and generally fall into one or more of the following categories (Attachment 3):
• Gross lot area in excess of half an acre (majority);
• Shopping Centers with long term tenants;
• Churches;
• Town Parking Lots;
• Banks; and
• Sites less likely to develop housing.
Staff has highlighted Tier 2 sites in Attachment 3 that can be potentially considered by the HEAB for inclusion in Tier 1.
Tier 3 sites have been identified as the least likely for new housing development based on the following criteria (Attachment 4):
• Gross lot area less than half an acre;
• Gross lot area greater than 10-acres;
• Not zoned for residential use; and
• Sites with active Planning applications for commercial development.
Income Distribution
Staff has preliminarily distributed the income categories for the draft Tier 1 sites based on the following methodology:
• For sites with a Draft 2040 General Plan maximum density of 40 dwelling units per acre, the income category was distributed at 50 percent for very-low income, 25 percent for low income, 25 percent for moderate income, and zero percent for above moderate income. • For sites with a Draft 2040 General Plan maximum density of less than 40 dwelling units, but result in more than 50 dwelling units, the income category was distributed at 25 percent for
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SUBJECT: Review and Discussion of the Housing Element Site Inventory May 13, 2022
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DISCUSSION (continued):
very-low income, 15 percent for low income, 15 percent for moderate income, and 45 percent for above moderate income.
• Any other sites that do not meet the criteria described above have been placed in above moderate income.
While the Tier 1 initial income distribution assumptions do not result in sufficient sites for the above moderate income category staff expects through upcoming review the assumptions will be adjusted.
The following questions are provided to guide the HEAB in their continued discussion of whether the sites identified in the Tier 1 site list are appropriate to recommend as the Draft Site Inventory to Town Council;
1. What sites, if any, should be removed from Tier 1?
2. Are there additional sites that should be added to Tier 1?
3. Should the income category distribution for Tier 1 be modified? NEXT STEPS:
Following the HEAB’s selection of sites to be included in the Draft Site Inventory, on Tuesday, June 7, 2022, the Town Council is tentatively scheduled to meet to discuss and consider the Draft Site Inventory and determine which sites should be included.
At the June 16, 2022, meeting, the HEAB will begin review and discussion of policy and program development.
PUBLIC COMMENTS:
At the time of this report’s preparation, the Town has not received any public comment.
ATTACHMENTS:
Attachments Received with this Staff Report:
1. Housing Element Site Inventory Guidebook, Department of Housing and Community Development
2. Draft Tier 1 Sites
3. Draft Tier 2 Sites
4. Draft Tier 3 Sites
5. Draft Tier 1 Map
This Page
Intentionally
Left Blank
STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
June 10, 2020
MEMORANDUM FOR: Planning Directors and Interested Parties FROM: Megan Kirkeby, Acting Deputy Director
Division of Housing Policy Development
SUBJECT: Housing Element Site Inventory Guidebook
Government Code Section 65583.2
The housing element of the general plan must include an inventory of land suitable and available for residential development to meet the locality’s regional housing need by income level. The purpose of this Guidebook is to assist jurisdictions and interested parties with the development of the site inventory analysis for the 6th Housing Element Planning Cycle and identify changes to the law as a result of Chapter 375, Statutes of 2017 (AB 1397), Chapter 958, Statutes of 2018 (AB 686), Chapter 664, Statutes of 2019 (AB 1486), and Chapter 667, Statutes of 2019 (SB 6). The Guidebook should be used in conjunction with the site inventory form developed by the California Department of Housing and Community Development (HCD). These laws introduced changes to the following components of the site inventory:
• Design and development of the site inventory (SB 6, 2019) • Requirements in the site inventory table (AB 1397, 2017 AB 1486, 2019) • Capacity calculation (AB 1397, 2017)
• Infrastructure requirements (AB 1397, 2017)
• Suitability of nonvacant sites (AB 1397, 2017)
• Size of site requirements (AB 1397, 2017)
• Locational requirements of identified sites (AB 686, 2018) • Sites identified in previous housing elements (AB 1397, 2017) • Nonvacant site replacement unit requirements (AB 1397, 2017) • Rezone program requirements (AB 1397, 2017)
The workbook is divided into five components: (Part A) identification of sites; (Part B) sites to accommodate the lower income RHNA; (Part C) capacity analysis; (Part D) non-vacant sites; and (Part E) determination of adequate sites.
If you have any questions, or would like additional information or technical assistance, please contact the Division of Housing Policy Development at (916) 263-2911.
ATTACHMENT 1
Table of Contents
BACKGROUND AND PURPOSE ........................................................................................ 3 Housing Element Site Inventory Requirements ................................................................ 3 SITE INVENTORY GUIDEBOOK FRAMEWORK................................................................ 4 Guidebook Structure......................................................................................................... 4 PART A: IDENTIFICATION OF SITES................................................................................. 5 Step 1: Identification of Developable Sites ....................................................................... 5 Step 2: Inventory of Sites.................................................................................................. 7 Step 3: Infrastructure Availability ...................................................................................... 7 Step 4: Map of Sites ......................................................................................................... 8 Step 5: Determination of Consistency with Affirmatively Furthering Fair Housing ............ 8 Step 6: Sites by RHNA Income Category ......................................................................... 9 Step 7: Environmental Constraints ................................................................................. 10 PART B: SITES TO ACCOMMODATE LOW AND VERY LOW- INCOME RHNA ............. 11 Step 1: Sites Used in Previous Planning Periods Housing Elements ............................. 11 Step 2: Zoning Appropriate to Accommodate Low- and Very Low- Income RHNA ........ 13 Step 3: Size of Sites ....................................................................................................... 15 PART C: CAPACITY ANALYSIS........................................................................................ 19 Step1: Utilizing minimum densities to calculate realistic capacity of sites....................... 19 Step 2: Utilizing factors to calculate realistic capacity of sites ........................................ 19 PART D: NONVACANT SITES .......................................................................................... 24 Step 1: Description of the nonvacant site ....................................................................... 25 Step 2: Nonvacant site analysis methodology ................................................................ 25 Step 3: Reliance on nonvacant sites to accommodate more than 50 percent of the RHNA for lower income households .......................................................................................... 26 Step 4: Program and policy requiring replacement of existing affordable units .............. 28 PART E: DETERMINATION OF ADEQUATE SITES......................................................... 30 Step 1: Consider any alternative means of meeting the RHNA ...................................... 30 Step 2: Determine whether there is sufficient capacity to accommodate the RHNA for the jurisdiction by income. .................................................................................................... 32 Step 3: Adequate Sites Program .................................................................................... 33 ATTACHMENT 1: SUMMARY OF NEW LAWS REFERENCED IN THE GUIDEBOOK .... 39 ATTACHMENT 2: GOVERNMENT CODE SECTION 65583.2 .......................................... 40
Site Inventory Guidebook Page 3 May 2020
BACKGROUND AND PURPOSE
Housing Element Site Inventory Requirements
Scarcity of land with adequately zoned capacity is a significant contributor to increased land prices and housing development costs. A lack of adequately zoned sites exacerbates the already significant deficit of housing affordable to lower income households. An effective housing element provides the necessary conditions for conserving, preserving and producing an adequate supply of housing affordable at a variety of income levels and provides a vehicle for establishing and updating housing and land-use strategies to reflect changing needs, resources, and conditions. Among other things, the housing element establishes a jurisdiction’s strategy to plan for and facilitate the development of housing over the five-to-eight year planning period by providing an inventory of land adequately zoned or planned to be zoned for housing and programs to implement the strategy.
The purpose of the housing element’s site inventory is to identify and analyze specific land (sites) that is available and suitable for residential development in order to determine the jurisdiction’s capacity to accommodate residential development and reconcile that capacity with the jurisdiction’s Regional Housing Need Allocation (RHNA). The available and suitable sites are referred to as “adequate sites” throughout this Guidebook. The site inventory enables the jurisdiction to determine whether there are sufficient adequate sites to accommodate the RHNA by income category. A site inventory and analysis will determine whether program actions must be adopted to “make sites available” with appropriate zoning, development standards, and infrastructure capacity to accommodate the new development need.
Sites are suitable for residential development if zoned appropriately and available for residential use during the planning period. If the inventory demonstrates that there are insufficient sites to accommodate the RHNA for each income category, the inventory must identify sites for rezoning to be included in a housing element program to identify and make available additional sites to accommodate those housing needs early within the planning period.
Other characteristics to consider when evaluating the appropriateness of sites include physical features (e.g., size and shape of the site, improvements currently on the site, slope instability or erosion, or environmental and pollution considerations), location (e.g., proximity to and access to infrastructure, transit, job centers, and public or community services), competitiveness for affordable housing funding (e.g., Low Income Housing Tax Credit scoring criteria), and likelihood or interest in development due to access to opportunities such as jobs and high performing schools1. When determining sites to include in the inventory to meet the lower income housing need, HCD recommends that a local government first identify development potential in high opportunity neighborhoods. This will assist the local government in meeting its requirements to affirmatively further fair housing and ensure developments are more competitive for development financing. 1 Please Note: Significant increases in the housing capacity of the residential land inventory of the housing element could also warrant planning for updating of other elements, including the land use, safety, circulation elements and inclusion of an environmental justice element or environmental justice policies. The housing element must include a program describing the means by which consistency will be achieved with other general plan elements and community goals (GC 65583(c)(8)).
Site Inventory Guidebook Page 4 May 2020
SITE INVENTORY GUIDEBOOK FRAMEWORK
The following is a Guidebook designed to assist a jurisdiction through the site inventory analysis required by Housing Element Law. Use of the Guidebook is not required for a determination of compliance by HCD. The Guidebook is intended to facilitate the jurisdiction in determining if adequate sites are available by income category to accommodate the jurisdiction’s share of the RHNA or if rezoning or other program actions are needed. Areas of the law that are newly added since the beginning of the 5th housing element cycle are marked with the designation *NEW*.
Guidebook Structure
PART A: IDENTIFICATION OF SITES
General characteristics of suitable sites identified in the inventory, including zoning, infrastructure availability, and environmental constraints, among others.
PART B: SITES TO ACCOMMODATE LOW AND VERY LOW- INCOME RHNA Analysis to determine if sites are appropriate to accommodate the jurisdiction’s RHNA for low- and very low-income households.
PART C: CAPACITY ANALYSIS
Description of the methodology used to determine the number of units that can be reasonably developed on a site.
PART D: NONVACANT SITES
Analysis to determine if nonvacant sites are appropriate to accommodate the jurisdiction’s RHNA.
PART E: DETERMINATION OF ADEQUATE SITES
After consideration of the above analysis and any alternate methods to accommodate RHNA, the determination of whether sufficient sites exist to accommodate RHNA or if there is a shortfall requiring a program to rezone additional sites.
Site Inventory Guidebook Page 5 May 2020
PART A: IDENTIFICATION OF SITES
Step 1: Identification of Developable Sites
Government Code section 65583.2(a)
Generally, a site is a parcel or a group of parcels that can accommodate a portion of the jurisdictions RHNA. A jurisdiction must identify, as part of an inventory, sites within its boundaries (i.e., city limits or a county’s unincorporated area)2 that could have the potential for new residential development within the eight- or five-year timeframe of the housing element planning period.
Types of sites include:
• Vacant sites zoned for residential use.
• Vacant sites zoned for nonresidential use that allow residential development. • Residentially zoned sites that are capable of being developed at a higher density (nonvacant sites, including underutilized sites).
• Sites owned or leased by a city, county, or city and county. • Sites zoned for nonresidential use that can be redeveloped for residential use and a program is included to rezone the site to permit residential use.
Pending, approved, or permitted development:
Projects that have been approved, permitted, or received a certificate of occupancy since the beginning of the RHNA projected period may be credited toward meeting the RHNA allocation based on the affordability and unit count of the development. For these projects, affordability is based on the actual or projected sale prices, rent levels, or other mechanisms establishing affordability in the planning period of the units within the project (See Part E). For projects yet to receive their certificate of occupancy or final permit, the element must demonstrate that the project is expected to be built within the planning period.
Definition of Planning Period: The “Planning period” is the time period between the due date for one housing element and the due date for the next housing element (Government Code section 65588(f)(1).) For example, the San Diego Association of Governments’ 6th Cycle Planning Period is April 15, 2021 to April 15, 2029.
Definition of Projection Period: “Projection period” is the time period for which the regional housing need is calculated (Government Code section 65588(f)(2).). For example, the San Diego Association of Governments’ 6th Cycle Projection Period is June 30, 2020 to April 15, 2029. End definitions
Please note, sites with development projects where completed entitlements have been issued are no longer available for prospective development and must be credited towards the RHNA based on the affordability and unit count of the development. “Completed entitlements” means a housing development or project which has received all the required land use approvals or entitlements necessary for the issuance of a building permit. This 2 In some cases, jurisdictions may want to include sites anticipated to be annexed in the planning period.
Annexation is considered a rezoning effort to accommodate a shortfall of sites. For more information on annexation please see Part E, Step 3.
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means that there is no additional action required to be eligible to apply and obtain a building permit.
Jurisdictions may choose to credit sites with pending projects since the beginning of the RHNA projection period towards their RHNA based on affordability and unit count within the proposed project but must demonstrate the units can be built within the remaining planning period. Affordability must be based on the projected sales prices, rent levels, or other mechanisms establishing affordability in the planning period of the units within the project.
Census definition of a unit: A housing unit is a house, an apartment, a group of rooms, or a single room occupied or intended for occupancy as separate living quarters. Separate living quarters are those in which the occupants do not live and eat with other persons in the structure and which have direct access from the outside of the building or through a common hall. Living quarters of the following types are excluded from the housing unit definition: dormitories, bunkhouses, and barracks; quarters in predominantly transient hotels, motels, and the like, except those occupied by persons who consider the hotel their usual place of residence; quarters in institutions, general hospitals, and military installations, except those occupied by staff members or resident employees who have separate living arrangements.
Student/University Housing: Please be aware, college and university student housing may be considered noninstitutional group quarters and not a housing unit for purposes of meeting the RHNA. According to the census, college/university student housing includes residence halls and other buildings, including apartment-style student housing, designed primarily to house college and university students in group living arrangements either on or off campus. These facilities are owned, leased, or managed by a college, university, or seminary or can be owned, leased, or managed by a private company or agency.
Residents typically enter into “by the bed” leases (i.e., single-liability leases). Another distinguishing factor is that the unit is not available for rent to non-students. For further information on whether university housing meets the definition of a housing unit, please contact the Department of Finance at (916) 323-4086. End definitions Exempt entity-controlled sites (state excess sites, military, university, and tribal land) HCD recognizes that the development of new housing on exempt entity sites (land controlled by exempt federal, state, or tribal entities) can meet a portion of a jurisdiction’s RHNA. However, sites located on land controlled by exempt entities are analyzed differently because the jurisdiction may not have control over the planning, permitting, and decision-making processes of land owned by another public entity.
Sites controlled by exempt entities can be used to accommodate RHNA when documentation can be provided that demonstrates the likelihood that the planned housing will be developed within the current RHNA/housing element cycle. Adequate documentation can vary due to differences in the planning processes on land controlled by exempt federal, state, or tribal entities. The following are examples of documentation that demonstrates the likelihood of housing being developed on sites outside the control of a local government. In each of these examples, the units would have to meet the U.S.
Census Bureau (Census) definition of a housing unit:
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• Agreement with the entity controlling the land that grants the jurisdiction authority regarding approving, permitting, certifying occupancy, and/or reporting new units to the California Department of Finance.
• Documentation from the entity controlling the land that demonstrates planned housing has been approved to be built within the current RHNA cycle. • Data pertaining to the timing of project construction and unit affordability by household income category.
• If the site is listed on the Department of General Services Real Estate Excess State Property map located EO N-06-19 Affordable Housing Development webpage.
Step 2: Inventory of Sites
Government Code section 65583.2(b)
Provide a parcel specific inventory of sites that includes the following information for each site:
• *NEW* Assessor parcel number(s).
• Size of each parcel (in acres).
• General plan land use designation.
• Zoning designation.
• For nonvacant sites, a description of the existing use of each parcel (See Part D) • *NEW* Whether the site is publicly owned or leased.
• Number of dwelling units that the site can realistically accommodate (See Part C) • *NEW* Whether the parcel has available or planned and accessible infrastructure (Part A: Step 3).
• *NEW* The RHNA income category the parcel is anticipated to accommodate (See Part A: Step 5).
• *NEW* If the parcel was identified in a previous planning period site inventory (Part B: Step 1).
*NEW* Please note pursuant to Chapter 667, Statutes of 2019 (SB 6), the site inventory must be prepared using the standards, form, and definitions adopted by HCD. HCD has prepared a form and instructions for this purpose that includes space for the information above and commonly provided optional fields. Starting January 1, 2021, local governments will need to submit an electronic version of the site inventory to HCD on this form along with its adopted housing element.
*NEW* Pursuant to Chapter 664, Statutes of 2019 (AB 1486), at Government Code section 65583.2(b)(3), if a site included in the inventory is owned by the city or county, the housing element must include a description of whether there are any plans to sell the property during the planning period and how the jurisdiction will comply with the Surplus Land Act Article 8 (commencing with Section 54220) of Chapter 5 of Part 1 of Division 2 of Title 5.
Step 3: Infrastructure Availability
Government Code section 65583.2(b)(5)(B)
Determine if parcels included in the inventory, including any parcels identified for rezoning, have sufficient water, sewer, and dry utilities available and accessible to support housing development or whether they are included in an existing general plan program or other mandatory program or plan, including a program or plan of a public or private entity to secure sufficient water, sewer, and dry utilities supply to support housing development on the site in time to make housing development realistic during the planning period. Dry utilities include, at minimum, a reliable energy source that supports full functionality of the
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home and could also include access to natural gas, telephone and/or cellular service, cable or satellite television systems, and internet or Wi-Fi service.
If Yes: Provide an analysis in the housing element describing existing or planned water, sewer, and other dry utilities supply, including the availability and access to parcels on the site inventory, distribution facilities, general plan programs or other mandatory program or plan (including a program or plan of a public or private entity to secure water or sewer service) to support housing development on the site. The housing element must include sufficient detail to determine whether the service levels of water delivery/treatment systems and sewer treatment facilities are sufficient and have the capacity to accommodate development on all identified sites in order to accommodate the RHNA. For example, the water supply should be a reliable supply that meets federal and state drinking water standards.
Please note sites identified as available for housing for above moderate-income households can still be in areas not served by public sewer systems.
If No: Include a program in the housing element that ensures access and availability to infrastructure to accommodate development within the planning period. If this is not possible, the site is not suitable for inclusion in the site inventory or in a program of action identifying a site for rezoning.
Step 4: Map of Sites
Government Code section 65583.2(b)(7)
Provide a map that shows the location of the sites included in the inventory. While the map may be on a larger scale, such as the land use map of the general plan, the more detailed the map, the easier it will be to demonstrate the sites meet new requirements pursuant to Chapter 958, Statutes of 2018 (AB 686) as stated below.
Step 5: Determination of Consistency with Affirmatively Furthering Fair Housing Government Code section 65583.2(a)
*NEW* Pursuant to AB 686, for housing elements due on or after January 1, 2021, sites must be identified throughout the community in a manner that affirmatively furthers fair housing opportunities (Government Code Section 65583(c)(10)).
Affirmatively Furthering Fair Housing means “taking meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and fosters inclusive communities free from barriers that restrict access to opportunity based on protected characteristics. Specifically, affirmatively furthering fair housing means taking meaningful actions that, taken together, address significant disparities in housing needs and in access to opportunity, replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity, and fostering and maintaining compliance with civil rights and fair housing laws. The duty to affirmatively further fair housing extends to all of a public agency’s3 3 Public Agencies include the state, including every state office, officer, department, division, bureau, board, and commission, including the California State University, a city, including a charter city, county, including a charter county, city and county, and a redevelopment successor agency, a public housing authority created pursuant to the Housing Authorities Law, a public housing agency, and any other political subdivision of the state that is a grantee or subgrantee receiving funds provided by the United States Department of Housing and Urban Development (Government Code section 8899.5(a)(2).
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activities and programs relating to housing and community development.” (Government Code section 8899.50(a)(1)).
For purposes of the housing element site inventory, this means that sites identified to accommodate the lower-income need are not concentrated in low-resourced areas (lack of access to high performing schools, proximity to jobs, location disproportionately exposed to pollution or other health impacts) or areas of segregation and concentrations of poverty.
Instead, sites identified to accommodate the lower income RHNA must be distributed throughout the community in a manner that affirmatively furthers fair housing. One resource the jurisdiction could use when completing this analysis is the California Tax Credit Allocation/California Department of Housing and Community Development Opportunity Maps, which can be accessed at https://www.treasurer.ca.gov/ctcac/opportunity.asp.
Particularly, the jurisdiction should consider the barriers and opportunities identified in its assessment of fair housing pursuant to Government Code section 65583(c)(10). HCD plans to release a technical assistance memo to assist jurisdictions in addressing AB 686 requirements in their housing element in the Summer of 2020.
Jurisdictions should also consider integrating this analysis with the requirements of Government Code 65302(h), as added by SB 1000 (Statutes of 2016), which requires the preparation and adoption of an Environmental Justice element or equivalent environmental justice-related policies, objectives, and goals throughout other elements of their general plan, to address the needs of disadvantaged communities. More information on Environmental Justice elements can be found on the Governor’s Office of Planning and Research Website.
Step 6: Sites by RHNA Income Category
Government Code section 65583.2(c)
*NEW* Identify which RHNA income category that each site in the inventory is anticipated to accommodate. On the site inventory, specify whether the site or a portion of the site is adequate to accommodate lower income housing, moderate-income housing, or above moderate-income housing. Sites can accommodate units for more than one income category. However, the inventory should indicate the number of units of each income category, and together the total of units attributed to each income category may not exceed total units attributed to the site, so that no unit is designated for more than one income category. This requirement is particularly important because the No Net Loss Law (Government Code section 65863) requires adequate sites be maintained throughout the planning period to accommodate the remaining RHNA by income category. For more information, please consult the HCD’s memo on No Net Loss Law.
HCD Best Practices for selecting sites to accommodate the lower income RHNA:
When determining which sites are best suited to accommodate the RHNA for lower income households, the jurisdiction should consider factors such as:
• Proximity to transit.
• Access to high performing schools and jobs.
• Access to amenities, such as parks and services.
• Access to health care facilities and grocery stores.
• Locational scoring criteria for Low-income Housing Tax Credit (TCAC) Program funding. • Proximity to available infrastructure and utilities.
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• Sites that do not require environmental mitigation.
• Presence of development streamlining processes, environmental exemptions, and other development incentives.
Step 7: Environmental Constraints
Government Code section 65583.2(b)(4)
Provide in the analysis a general description of any known environmental or other features (e.g., presence of floodplains, protected wetlands, oak tree preserves, very high fire hazard severity zones) that have the potential to impact the development viability of the identified sites. The housing element need only describe those environmental constraints where documentation of such conditions is available to the local government. This analysis must demonstrate that the existence of these features will not preclude development of the sites identified in the planning period at the projected residential densities/capacities. This information need not be identified on a site-specific basis. However, local governments will find it beneficial to describe site specific environmental conditions when demonstrating site suitability and realistic buildout capacity of each site, as these types of impediments to building must be considered when determining how many residential units can be developed on the site.
NEXT STEP:
• If the site is selected to accommodate its low or very-low income RHNA, move to Part B: Sites to Accommodate Low and Very-Low Income RHNA.
• If the site accommodates moderate or above-moderate RHNA, move to Part C:
Capacity Analysis.
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PART B: SITES TO ACCOMMODATE LOW AND VERY LOW- INCOME RHNA Step 1: *NEW* Sites Used in Previous Planning Periods Housing Elements Government Code section 65583.2(c)
Determine if the site identified to accommodate the low- and very low-income RHNA pursuant to Part A, Step 6 was used in the previous planning period4. Generally, previously identified sites refer to parcels that were identified in a previous housing element’s site inventory to accommodate any portion of any income category of the jurisdiction’s RHNA, as follows:
For a nonvacant site: Included in a prior planning period’s housing element (e.g., 5th cycle housing element)
For a vacant site (see definition of vacant site on page 21): Included in two or more consecutive planning periods (e.g., 5th cycle and 4th cycle housing element) If Yes: move to Step 1A
If No: move to Step 2
Unusual Circumstances
Sites rezoned or identified for rezoning to accommodate a RHNA shortfall Previously identified sites can also include sites that were subject to a previous housing element’s rezone program but that were ultimately not rezoned. For example: a previous housing element’s rezone program to address a shortfall of sites for lower income households committed to rezone four acres to R-4 zoning, and identified five candidate sites for rezoning, A through E, and each site was two acres in size. If the program was completed in the prior planning period and four acres were rezoned, only those sites rezoned are considered “previously identified.” However, if none or fewer than four acres were rezoned, all the non-rezoned sites identified as candidate sites would be considered as “previously identified.”
Sites rezoned to a higher density as part of a general plan update (not needed to accommodate a shortfall)
Due to updates in the prior planning period to the general plan or other planning activities, such as the creation of a specific plan, some sites previously identified in the housing element may have been rezoned allowing a higher density, and therefore increasing the potential housing capacity of the site. Because the zoning characteristics of this site have changed, it can be considered a new site for the purposes of the housing element inventory. This is only the case if it was not utilized to accommodate a shortfall of sites to accommodate the RHNA. End unusual circumstances
4 Sites in unincorporated areas in a nonmetropolitan county without a micropolitan area are exempt from this step. This includes the unincorporated parts of Alpine, Amador, Calaveras, Colusa, Glenn, Mariposa, Modoc, Mono, Plumas, Sierra, Siskiyou, Trinity.
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Step 1A:
Indicate in the housing element site inventory that this parcel was used in a prior housing element planning period.
Step 1B:
Include a program in the housing element requiring rezoning within three years of the beginning of the planning period to allow residential use by right at specified densities (see Step 2) for housing developments in which at least 20 percent of the units are affordable to lower income households. This program can be an overlay on these specific sites. Please be aware that the intent of this requirement is to further incentivize the development of housing on sites that have been available over one or more planning periods. The application of the requirement should not be used to further constrain the development of housing. As such, housing developments that do not contain the requisite 20 percent would still be allowed to be developed according to the underlying (base) zoning but would not be eligible for “by right” processing. However, the jurisdiction would have to make findings on the approval of that project pursuant to No Net Loss Law (Government Code section 65863) and proceed to identify an alternative site or sites pursuant to that law.
Definition of Use By Right (Government Code section 65583.2 (i)) By right means the jurisdiction shall not require:
• A conditional use permit.
• A planned unit development permit.
• Other discretionary, local-government review or approval that would constitute a “project” as defined in Section 21100 of the Public Resources Code (California Environmental Quality Act “CEQA”).
However, if the project requires a subdivision, it is subject to all laws, including CEQA.
This does not preclude a jurisdiction from imposing objective design review standards.
However, the review and approval process must remain non discretionary and the design review must not constitute a “project” as defined in Section 21100 of the Public Resources Code. For example, a hearing officer (e.g., zoning administrator) or other hearing body (e.g., planning commission) can review the design merits of a project and call for a project proponent to make design-related modifications, but cannot exercise judgment to reject, deny, or modify the “residential use” itself. (See McCorkle Eastside Neighborhood Group v.
City of St. Helena (2019) 31 Cal.App.5th 80.)
For reference, CEQA applies when a governmental agency can exercise judgment in deciding whether and how to carry out or approve a project. This makes the project “discretionary” (CEQA Guidelines, §15357.) Where the law requires a governmental agency to act on a project using fixed standards and the agency does not have authority to use its own judgment, the project is called “ministerial,” and CEQA does not apply. (CEQA Guidelines, §§ 15268(a), 15369.) End definition of by right.
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Sample Program:
Provide Adequate Sites for Lower Income Households on Nonvacant and Vacant Sites Previously Identified
The City of X will rezone to allow developments by right pursuant to Government Code section 65583.2(i) when 20 percent or more of the units are affordable to lower income households on sites identified in Table A to accommodate the lower income RHNA that was previously identified in past housing elements. Specifically, the City will rezone the nonvacant sites identified on Table A previously identified in the 5th cycle housing element, and the vacant sites identified on Table A as previously identified for both the 5th and 4th cycle housing elements.
Objective: Create opportunity for at least X units of rental housing for lower income households
Responsible Agency: Community Development Department
Timeline: Sites rezoned by (a specific date, no more than three years from the beginning of the planning period)
Funding Source(s): General fund
Step 2: Zoning Appropriate to Accommodate Low- and Very Low- Income RHNA Government Code section 65583.2(c)(3)
Determine if the zoning on the site is appropriate to accommodate low- and very lowincome (termed together as “lower”) housing.
The statute allows jurisdictions to use higher density as a proxy for lower income affordability, as long as certain statutory requirements are met. Parcels must be zoned to allow sufficient density to accommodate the economies of scale needed to produce affordable housing. To make this determination, the statute allows the jurisdiction to either demonstrate that the zoning allows a specific density set forth in the statute (default density)5 or to provide an analysis demonstrating the appropriateness of the zoned densities of the site identified to accommodate the lower RHNA.
Step 2A: Does the parcel’s zoning allow for “at least” the following densities? • For an incorporated city within a nonmetropolitan county and for a nonmetropolitan county that has a micropolitan area: sites allowing at least 15 units per acre. • For an unincorporated area in a nonmetropolitan county not included in the first bullet:
sites allowing at least 10 units per acre.
• For a suburban jurisdiction: sites allowing at least 20 units per acre. • For a jurisdiction in a metropolitan county: sites allowing at least 30 units per acre. “At least” means the density range allowed on the parcel by the zone has to include the default density. For example, if a jurisdiction has a default density of 30 units per acre and the zone allows for range of 24 – 35 units per acre, the zoning is considered appropriate to accommodate the RHNA for lower income households. This is different than the program standard outlined in Part E which requires a minimum of a specific density in the allowed 5 Sometimes called “Mullin densities” after the author of AB 2348, Statutes of 2004, which originated these requirements.
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density range in the zone. To determine the default density for jurisdictions, please refer to HCD Memorandum: Default Density Standard Option (2010 Census Update).
If Yes: Move to Step 3
If No: Move to Step 2B
Step 2B: Can the analysis demonstrate the appropriateness of the zoning to accommodate housing?
Provide an analysis demonstrating how the allowed densities facilitate the development of housing to accommodate the lower income RHNA. The analysis shall include, but is not limited to, factors such as market demand, financial feasibility, and information based on development project experience within a zone or zones, or at densities that accommodate housing for lower income households.
Information gathered from local developers on densities ideal for housing development in the community and examples of recent residential projects that provide housing for lower income households is helpful in establishing the appropriateness of the zone. Other information could include land costs, market demand for various types of affordable housing, and the gap between typical market rents and subsidized rents. It is recognized that housing affordable to lower income households requires significant subsidies and financial assistance. However, for this analysis, identifying examples of subsidized housing projects alone is not sufficient to demonstrate the adequacy of a zone and/or density to accommodate the housing affordable to lower income households. In particular, identification of older project(s) or one-off projects that cannot be easily duplicated is not sufficient to demonstrate a development trend.
The analysis of “appropriate zoning” should not include residential buildout projections resulting from the implementation of a jurisdiction’s inclusionary program or potential increase in density due to a density bonus, because these tools are not a substitute for addressing whether the underlining (base) zoning densities are appropriate to accommodate the RHNA for lower income households. Additionally, inclusionary housing ordinances applied to rental housing must include options for the developer to meet the inclusionary requirements other than exclusively requiring building affordable units on site.
While an inclusionary requirement may be a development criterion, it is not a substitute for zoning. The availability of density bonuses is also not a substitute for an analysis, since they are not a development requirement, but are development options over the existing density, and generally require waivers or concessions in development standards to achieve densities and financial feasibility.
If Yes: Move to Step 3
If No: Site is not appropriate to accommodate lower income. Reclassify pursuant to Part A, Step 5.
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Housing Overlays
Affordable housing or zoning overlays are a zoning tool that allows jurisdictions to modify existing zoning to allow for or require certain types of residential development, or development at certain densities, on a parcel without modifying the standards of the underlying zoning district. Usually, they have specific requirements and conditions (e.g., a percentage of the development must be deed-restricted as affordable to lower income households for a specific number of years) that must be met in order for a developer to take advantage of the overlay. These are often combined with incentives to encourage developers to utilize the overlay. Jurisdictions use overlays to help promote a specific type of development, and to increase densities without having to go through a rezoning procedure on the actual parcel and can be more useful when issues such as density and affordable housing become contentious. To ensure the overlay is considered zoning and not just a development incentive, the overlay must demonstrate the following:
• There is no additional discretionary action needed above what is required in the base zone (i.e., a conditional use permit or other review) for a developer to take advantage of overlay.
• Development standards are consistent with those needed to allow for the density allowed under the overlay. Development standards for use exclusively in the overlay may be needed in order to ensure maximum allowable densities can be achieved. • The developer can access State Density Bonus Law in addition to using the densities allowed in the overlay. For example, if the underlying zoning allows a maximum density of 15 units per acre, but the overlay allows a maximum density of 25 units per acre, and if the developer is using the overlay and wants to use State Density Bonus Law, the density bonus is calculated assuming the base density is 25 units per acre.
If the overlay has conditions such as an affordability requirement, incentives should be sufficient and available to make development feasible and more profitable than the underlying zoning.
For an affordable housing overlay, the element should describe affordability threshold requirements to utilize the overlay (i.e., percentage of units and levels of affordability which must be met to develop at the increased densities). Please note, the jurisdiction should talk with for-profit and nonprofit developers to determine an appropriate mix of incomes that make development feasible in their community. For example, a 100 percent affordability requirement may act as a constraint to using the overlay depending on the level of subsidy required per unit and the availability of funding to support the level of affordability or available incentives. End Housing Overlay
Step 3: Size of Sites
Government Code section 65583.2(c)(2)(A), (B), and (C)
*NEW* Is the size of the site appropriate to accommodate housing for lower income households?
To achieve financial feasibility, many assisted housing developments using state or federal resources are between 50 to 150 units. Parcels that are too small may not support the number of units necessary to be competitive and to access scarce funding resources.
Parcels that are large may require very large projects, which may lead to an over concentration of affordable housing in one location, or may add cost to a project by
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requiring a developer to purchase more land than is needed, or render a project ineligible for funding. If the size of the site is smaller than one half acre or larger than 10 acres, the following analysis is required.
If the parcel is more than 0.5 acres or less than 10 acres, is the size of the site automatically considered appropriate to accommodate lower income RHNA? Not necessarily. If the size of the parcel in combination with the allowable density and accompanying development standards cannot support a housing development affordable to lower income households, further analysis and programs may be needed to demonstrate the suitability of that site to accommodate the portion of the RHNA for lower income households. End Question and Answer
Is the size of the parcel under 0.5 acres?
If Yes: Move to Step 3A
Is the size of the parcel over 10 acres?
If Yes: Move to Step 3B
If No to Both: Move to Part C: Capacity Analysis
Step 3A: Sites smaller than 0.5 acres
A parcel smaller than one half acre is considered inadequate to accommodate housing affordable to lower income households, unless the housing element demonstrates development of housing affordable to lower income households on these sites is realistic or feasible. While it may be possible to build housing on a small parcel, the nature and conditions (i.e., development standards) necessary to construct the units often render the provision of affordable housing infeasible. The housing element must consider and address the impact of constraints associated with small lot development on the ability of a developer to produce housing affordable to lower income households. To demonstrate the feasibility of development on this type of site, the analysis must include at least one of the following:
• An analysis demonstrating that sites of equivalent size were successfully developed during the prior planning period with an equivalent number of lower income housing units as projected for the site.
• Evidence that the site is adequate to accommodate lower income housing. Evidence could include developer interest, potential for lot consolidation, densities that allow sufficient capacity for a typical affordable housing project, and other information that can demonstrate to HCD the feasibility of the site for development. For parcels anticipated to be consolidated, the housing element must include analysis describing the jurisdiction’s role or track record in facilitating small lot consolidation, policies or incentives offered or proposed to encourage and facilitate lot consolidation, conditions rendering parcels suitable and ready for consolidation such as common ownership, and recent trends of lot consolidation. The housing element should include programs promoting, incentivizing, and supporting lot consolidations and/or small lot development. • A site may be presumed to be realistic for development to accommodate lower income housing need if, at the time of the adoption of the housing element, a development affordable to lower income households has been proposed and approved for development on the site.
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The housing element must also describe existing and proposed policies or incentives the jurisdiction will offer to facilitate development of small sites. Examples of program incentives for lot consolidation include deferring fees specifically for consolidation, expediting permit processing, providing flexible development standards such as setback requirements, reduced parking or increased heights, committing resources for development of affordable housing on small sites, or increasing allowable density, lot coverage or floor area ratio.
Step 3B: Sites larger than 10 acres
Parcels larger than 10 acres are considered inadequate to accommodate housing affordable to lower income households, unless the housing element demonstrates development of housing affordable to lower income households on such sites was successful during the prior planning period, or there is other evidence that the site is realistic and feasible for lower income housing.
Definition of a Large Site
For purposes of this requirement, “site” means that portion of the parcel designated to accommodate lower income housing needs. For example, a parcel greater than 10 acres in size could have to be split zoned, have an overlay zone with identified boundaries, or be identified in a specific plan that provides for subdivision of the parcel. If the specified boundaries of the site identified to accommodate the RHNA for lower income is less than 10 acres in size, then the large site analysis would not be required. However, the analysis must describe how the development will work on the site, including opportunities and timing for specific-plan development, further subdivision, or other methods to facilitate the development of housing affordable to lower income households on the identified site within the planning period. End definition
To demonstrate the feasibility of development on this type of site, the analysis must include at least one of the following:
• An analysis demonstrating that sites of equivalent size were successfully developed during the prior planning period with an equivalent number of lower income housing units as projected for the site.
• Evidence that the site is adequate to accommodate lower income housing. Evidence may include developer interest, proposed specific-plan development, potential for subdivision, the jurisdiction’s role or track record in facilitating lot splits, or other information that can demonstrate to HCD the feasibility of the site for development. The housing element should include programs promoting, incentivizing, and supporting lot splits and/or large lot development.
• A site may be presumed to be realistic for development to accommodate lower income housing need if, at the time of the adoption of the housing element, a development affordable to lower income households has been proposed and approved for development on the site.
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Specific Plans, Master Plan, and other Subdivisions
To utilize residential capacity in Specific Plan areas, areas under a Master Plan, or a similar multi-phased development plan, the housing element must identify specific sites by parcel number and demonstrate that the sites are available and suitable for development within the planning period. The analysis should include the following information:
• Identify the date of approval of the plans and expiration date. • Identify approved or pending projects within these plans that are anticipated in the planning period, including anticipated affordability based on the actual or projected sale prices, rent levels, or other mechanisms establishing affordability in the planning period of the units within the project.
• Describe necessary approvals or steps for entitlements for new development (e.g., design review, site plan review, etc.).
• Describe any development agreements, and conditions or requirements such as phasing or timing requirements, that impact development in the planning period. End information on planned development.
The housing element must also describe existing and proposed policies or incentives the jurisdiction will offer to facilitate development of large sites. Examples of facilitation include expedited or automatic approval of lot splits or creation of new parcels, waivers of fees associated with subdivision, or expedited processing or financial assistance with the development of infrastructure required to develop the site.
NEXT STEP:
• Move to Part C: Capacity Analysis
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PART C: CAPACITY ANALYSIS
Government Code Section 65583.2(c) requires, as part of the analysis of available sites, a local government to calculate the projected residential development capacity of the sites identified in the housing element that can be realistically be achieved. The housing element must describe the methodology used to make this calculation. Jurisdictions have two options to make this calculation.
• Utilize minimum densities (Step 1)
• Utilize adjustment factors (Step 2)
Step1: Utilizing minimum densities to calculate realistic capacity of sites Government Code section 65583.2(c)(1)
If the jurisdiction has adopted a law, policy, procedure, or other regulation that requires the development of a site to contain at least a certain minimum residential density, the jurisdiction can utilize that minimum density to determine the capacity of a site. For purposes of this analysis, the use of either gross or net acreage is acceptable but should be consistent with the standard the jurisdiction typically uses for determining allowable units for a residential development project. For example:
Site Description Value
Size of site (Gross acreage) 3 acres
Zoning Residential Multifamily
Allowable density 20 (required minimum) – 30 dwelling units per acre
Realistic capacity utilizing minimum 3 X 20 = 60 units
Please note, to meet this standard on a zone that allows for multiple uses, the general plan or zoning must require the specified minimum number of residential units on the identified sites regardless of overlay zones, zoning allowing nonresidential uses, or other factors potentially impacting the minimum density. Otherwise, the capacity of the site must be calculated using the factors outlined in Step 2.
Step 2: Utilizing factors to calculate realistic capacity of sites Government Code section 65583.2(c)(2)
The housing element must describe the methodology used to determine the number of units calculated based on the following factors:
• Land use controls and site improvements requirements, • *NEW* The realistic development capacity for the site, • *NEW* Typical densities of existing or approved residential developments at a similar affordability level in that jurisdiction,
• *NEW* The current or planned availability and accessibility of sufficient water, sewer, and dry utilities.
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Applicable land-use controls and site improvement requirements The analysis must consider the imposition of any development standards that impact the residential development capacity of the sites identified in the inventory. When establishing realistic unit capacity calculations, the jurisdiction must consider the cumulative impact of standards such as maximum lot coverage, height, open space, parking, on-site improvements such as sidewalks or easements, and floor area ratios. The analysis should consider any development standards or the cumulative effect of development standards that would limit the achievable density on a site. For example, if a mixed-use zone requires commercial on the ground floor and has a height limit of three stories along with lot coverage and other development standards, the density that can actually be achieved on that site might be less than the maximum allowable density.
The capacity of a site should also be adjusted for areas that cannot be developed due to environmental factors such as hazards, wetlands, or topography that cannot be mitigated.
The capacity of sites subject to specific plans, overlays or other modifications of the base zoning should be adjusted to reflect those factors. For purposes of this analysis, it is recommended that the jurisdiction start with the gross acreage and adjust the buildable acreage accordingly to reach net buildable acreage.
Form Based Codes
To estimate capacity for sites in jurisdictions that have adopted form-based codes, the element should describe the relationship between general plan land-use designation and the form-based code and density assumptions used to determine capacity. Specifically, describe where residential development is allowed, how density requirements found within the general plan are incorporated, how the zoning designations under the form-based code relate to the land-use designations of the general plan, identify potential densities, and consider development standards such as bulk, height, and build-to requirements, buildings types, and use requirements. The element could include examples of recently built projects and densities to support the analysis. End Form Base Codes Realistic development capacity for nonresidential, nonvacant, or overlay zoned sites The capacity calculation must be adjusted to reflect the realistic potential for residential development capacity on the sites in the inventory. Specifically, when the site has the potential to be developed with nonresidential uses, requires redevelopment, or has an overlay zone allowing the underlying zoning to be utilized for residential units, these capacity limits must be reflected in the housing element. Factors used to make this adjustment may include the following:
• Performance standards mandating a specified portion of residential development in mixed use or nonresidential zones (e.g., residential allowed only above first floor commercial).
• The likelihood for residential development such as incentives for residential use, market demand, efforts to attract and assist developers, or allowance of 100 percent residential development.
• Local or regional residential development trends in the same nonresidential zoning districts.
• Local or regional track records, past production trends, or net unit increases/yields for redeveloping sites or site intensification. This estimate may be based on the rate at which similar parcels were developed during the previous planning period, with
Site Inventory Guidebook Page 21 May 2020
adjustments as appropriate to reflect new market conditions or changes in the regulatory environment. If no information about the rate of development of similar parcels is available, report the proportion of parcels in the previous housing element’s site inventory that were developed during the previous planning period. For example, if past production trends indicate that two out of three similar sites were developed for residential use, and one out of three similar sites was developed for commercial use, an initial estimate of the proportion of new development which is expected to be residential would be two-thirds, i.e., 0.67.
• Local or regional track records, trends, or build out yields for redeveloping sites or site intensification.
In addition, the housing element should include monitoring programs with next-step actions to ensure sites are achieving the anticipated development patterns. The programs should identify modifications to incentives, sites, programs, or rezoning the jurisdiction will take should these strategies not yield the expected housing potential.
Typical densities of existing or approved residential developments at a similar affordability level in that jurisdiction
While using typically built densities to determine realistic capacity has long been an option to be used as an adjustment factor, the statute now requires this factor to be adjusted based on approved project by affordability level. For example, if a site is identified to accommodate the lower income RHNA, it should use project densities for housing affordable to lower income households developed either locally or regionally to determine typical densities6. Using this adjustment factor may result in utilizing different capacity methodologies for above moderate-, moderate-, and lower income sites.
Current or planned availability and accessibility of sufficient water, sewer, and dry utilities The capacity methodology must be adjusted to account for any limitation as a result of availability and accessibility of sufficient water, sewer, and dry utilities (i.e., if the capacity of the site could be limited because a development would have to use a septic system, if there are any septic tank requirements or restrictions that constrain capacity, or limitations on water hook-ups). See Part A, Step 3 for more information on infrastructure requirements.
Example Capacity Calculation
Here is an example of the actual capacity calculation for a particular site in the inventory.
The methodology analysis must describe how each of these adjustments was generated per the analysis requirements above. The factors used below are based on the factors outlined in the statute. The percentages and how the factors are applied will vary depending on the unique circumstance in each jurisdiction. 6 In using this adjustment factor, because of the use of density bonus, it may be possible that trends demonstrate typical densities higher than the maximum allowable densities, especially for housing affordable to lower income households. On a case-by-case basis, it may be appropriate to utilize increased densities due to density bonuses when determining the adjustment factor in the capacity methodology.
Site Inventory Guidebook Page 22 May 2020
Site Description
Size of site 2.5 acres
Zoning Residential Mixed-Use
Allowable density 20 – 45 dwelling units per acre
RHNA affordability Lower income
Existing Use Nonvacant, single storefront
Infrastructure availability Yes, no constraints
Environmental constraints None known
Capacity Factors Adjustment Reasoning
Land Use Controls and
Site Improvements
95% For net acreage due to on-site
improvements including sidewalks,
utility easement
Realistic capacity of the
site
55% 55% adjustment based on past
development trends for residential
redevelopment in the residential
mixed-use zones, and programs to
incentivize development in this zone.
Typical densities 95% Affordable housing projects are built out to almost maximum density
Infrastructure availability No adjustment Not applicable, no constraint Environmental constraints No adjustment No known site constraint Realistic capacity utilizing factors = (2.5 X 45)( .95)(.55)(.95) = 56 units Realistic Capacity = 56 Units
No Net Loss Law
In estimating realistic capacity on sites in the sites inventory, jurisdictions may want to consider No Net Loss Law. This law was amended by Chapter 367, Statutes of 2017 (Senate Bill 166), which requires sufficient adequate sites to be available at all times throughout the RHNA planning period to meet a jurisdiction’s remaining unmet housing needs for each income category. To comply with the No Net Loss Law, as jurisdictions make decisions regarding zoning and land use, or development occurs, jurisdictions must assess their ability to accommodate new housing in each income category on the remaining sites in their housing element site inventories. A jurisdiction must add additional sites to its inventory if land use decisions or development results in a shortfall of sufficient sites to accommodate its remaining housing need for each income category. In particular, a jurisdiction may be required to identify additional sites according to the No Net Loss Law if a jurisdiction rezones a site or if the jurisdiction approves a project at a different income level than shown in the sites inventory. Lower density means fewer units than the capacity assumed in the site inventory.
To ensure that sufficient capacity exists in the housing element to accommodate the RHNA throughout the planning period, it is recommended the jurisdiction create a buffer in the housing element inventory of at least 15 to 30 percent more capacity than required, especially for capacity to accommodate the lower income RHNA. Jurisdictions can also create a buffer by projecting site capacity at less than the maximum density to allow for some reductions in density at a project level. End no net loss law explanation.
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NEXT STEP:
• If the parcel is nonvacant, including underutilized sites (see definition of vacant site on page 22), move to Part D: Nonvacant Sites Analysis
• If not, move to Part E: Determination of Adequate Sites
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PART D: NONVACANT SITES
Local governments with limited vacant land resources or with infill and reuse goals may rely on the potential for new residential development on nonvacant sites, including underutilized sites, to accommodate their RHNA. Examples include:
• Sites with obsolete uses that have the potential for redevelopment, such as a vacant restaurant.
• Nonvacant publicly owned surplus or excess land; portions of blighted areas with abandoned or vacant buildings.
• Existing high opportunity developed areas with mixed-used potential. • Nonvacant substandard or irregular lots that could be consolidated. • Any other suitable underutilized land.
Local governments can meet other important community objectives to preserve open space or agricultural resources, as well as assist in meeting greenhouse gas emission-reduction goals, by adopting policies to maximize existing land resources and by promoting more compact development patterns or reuse of existing buildings.
Definition of a Vacant Site
A vacant site is a site without any houses, offices, buildings, or other significant improvements on it. Improvements are generally defined as development of the land (such as a paved parking lot, or income production improvements such as crops, high voltage power lines, oil-wells, etc.) or structures on a property that are permanent and add significantly to the value of the property.
Examples of Vacant Sites:
• No improvement on the site (other than being a finished lot). • No existing uses, including parking lots.
• Underutilized sites are not vacant sites.
• Sites with blighted improvements are not vacant sites. • Sites with abandoned or unoccupied uses are not vacant sites. End definition If the inventory identifies nonvacant sites to address a portion of the RHNA, the housing element must describe the realistic development potential of each site within the planning period. Specifically, the analysis must consider the extent that the nonvacant site’s existing use impedes additional residential development, the jurisdiction's past experience converting existing uses to higher density residential development, market trends and conditions, and regulatory or other incentives or standards that encourage additional housing development on the nonvacant sites.
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Step 1: Description of the nonvacant site
Government Code Section 65583.2(b)
As stated in Part A, the site inventory must describe the specific existing use on the site, such as a surplus school site, auto shop, restaurant, single family residence, nursery, etc.
Additional details, such as whether the use is discontinued, land to value information, age and condition of the structure, known leases, developer or owner interest, whether the property is currently being marketed, degree of underutilization, etc., are useful for demonstrating the potential for the site to be redeveloped within the planning period (See Step 2).
Step 2: Nonvacant site analysis methodology
Government Code section 65583.2(g)(1)
Provide an explanation of the methodology used to determine the development potential.
This methodology can be done on a site-specific basis by utilizing factors (e.g., common ownership, valuation, age, etc.) in common that demonstrate the potential for residential development within the planning period, or a combination of both approaches. The methodology shall consider factors including:
Existing Uses:
Include an analysis that demonstrates the extent to which existing uses may constitute an impediment to additional residential development. Among other things, this analysis includes considerations for the current market demand for the existing use, *NEW* an analysis of any known existing leases or other contracts that would perpetuate the existing use or prevent redevelopment of the site for additional residential development, and could include other market conditions that would encourage redevelopment of the property. For example, an analysis might describe an identified site as being developed with a 1960’s strip commercial center with few tenants and expiring leases and, therefore, a good candidate for redevelopment, versus a site containing a newly opened retail center, an active Home Depot, the only grocery store in the city, etc. that is unlikely to be available for residential development within the planning period.
Development Trends:
The inventory analysis should describe development and/or redevelopment trends in the community as it relates to nonvacant sites, i.e., the rate at which similar sites have been redeveloped. This could include a description of the local government’s track record and specific role in encouraging and facilitating redevelopment, adaptive reuse, or recycling to residential or more intensive residential uses. If the local government does not have any examples of recent recycling or redevelopment, the housing element should describe current or planned efforts (via new programs) to encourage and facilitate this type of development (e.g., providing incentives to encourage lot consolidation or assemblage to facilitate increased residential-development capacity). The results of the analysis should be reflected in the capacity calculation described in Part C, above.
Market Conditions:
Housing market conditions also play a vital role in determining the feasibility or realistic potential of nonvacant sites for residential development. The nonvacant sites analysis should include an evaluation of the impact of local market conditions on redevelopment or reuse strategies. For example, high land and construction costs, combined with a limited supply of available and developable land, may indicate conditions “ripe” for more intensive, compact and infill development or redevelopment and reuse.
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Availability of Regulatory and/or other Incentives:
The analysis should describe existing or planned financial assistance, incentives or regulatory concessions to encourage residential development on nonvacant sites. Many local governments develop partnerships with prospective developers to assist in making redevelopment/reuse economically feasible. Examples of these incentives include:
• Organizing special marketing events geared towards the development community. • Identifying and targeting specific financial resources. • Allowing streamlined or by right development application processing for infill sites. • Reducing appropriate development standards.
Absent a track record or development trends to demonstrate the feasibility of a recycling or redevelopment strategy, the housing element should describe existing or planned financial assistance or regulatory relief from development standards that will be provided sufficient to encourage and facilitate more intensive residential development on the identified nonvacant sites.
Step 3: *NEW* Reliance on nonvacant sites to accommodate more than 50 percent of the RHNA for lower income households
Government Code Section 65583.2(g)(2)
Determine if more than 50 percent of the lower income RHNA is on nonvacant sites. • Calculate the sum of lower income RHNA capacity on vacant sites and other alternatives not related to capacity on nonvacant sites (e.g., accessory dwelling units, vacant sites to be rezoned (see Part E)).
• Subtract that sum from the total lower income RHNA to get the amount of RHNA needed to be accommodated on nonvacant sites.
• Determine if this number is greater than 50 percent of the RHNA.
Example calculation for a jurisdiction with a lower income RHNA of 500:
Adjustment Factor Number of units
Proposed Lower Income Project 50
Accessory Dwelling Unit Capacity (affordable to lower) 15 Capacity on Vacant Sites 100
Total Capacity (not related to non-vacant sites) 165
RHNA on Nonvacant sites 500 - 165 = 335
Percentage of Lower Income RHNA accommodated
on Nonvacant sites
335/500 = 77%
If Yes: Move to Step 3A
If No: Move to Step 4
Site Inventory Guidebook Page 27 May 2020
Step 3A:
If a housing element relies on nonvacant sites to accommodate 50 percent or more of its RHNA for lower income households, the nonvacant site’s existing use is presumed to impede additional residential development, unless the housing element describes findings based on substantial evidence that the use will likely be discontinued during the planning period. The housing element must include the following:
• As part of the resolution adopting the housing elements, findings stating the uses on nonvacant sites identified in the inventory to accommodate the RHNA for lower income is likely to be discontinued during the planning period and the factors used to make that determination. This can be included in the body or in the recital section of the resolution.
Example: WHEREAS, based on <name factors here (e.g., expiring leases, dilapidated building conditions, etc.)>, the existing uses on the sites identified in the site inventory to accommodate the lower income RHNA are likely to be discontinued during the planning period, and therefore do not constitute an impediment to additional residential development during the period covered by the housing element. • The housing element should describe the findings and include a description of the substantial evidence they are based on.
In general, substantial evidence includes facts, reasonable assumptions predicated upon facts, and expert opinion supported by facts. An example of substantial evidence would be a nonvacant site with a grocery store and with a building lease expiring in a year, and evidence that the store has entered into a lease to relocate to another site subsequent to the lease expiring.
Examples of substantial evidence that an existing use will likely be discontinued in the current planning period include, but are not limited to:
- The lease for the existing use expires early within the planning period, - The building is dilapidated, and the structure is likely to be removed, or a demolition permit has been issued for the existing uses,
- There is a development agreement that exists to develop the site within the planning period,
- The entity operating the existing use has agreed to move to another location early enough within the planning period to allow residential development within the planning period.
- The property owner provides a letter stating its intention to develop the property with residences during the planning period.
If multiple sites make up a common existing use and the same factors affect each of the sites, the same findings can be used for each of the sites (e.g., an abandoned shopping mall with sites under common ownership that will not be restored to commercial use located in an area where there is recent residential development). The “substantial evidence” would indicate the existing use will not impede further residential development or that the existing use will be discontinued during the planning period. In this type of situation, use of the same findings for each of the multiple sites would be appropriate.
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However, the same finding for multiple sites in a specific area may not be appropriate if their characteristics widely vary. For example, nonvacant sites with differing existing uses and lacking in common ownership, whether contiguous or located in the same general area, may not rely on a generalized analysis. While the sites may be located in an area with common economic issues, individual owners may not wish to sell their property or redevelop their site with residential uses. In addition, each site’s existing use, e.g., grocery store, retail shop, parking lot, and offices, may have lease agreements of different lengths of time or the owner may not wish to relocate or redevelop the site with a more intensive residential use. In this type of situation, use of the same findings for the multiple sites would not be appropriate.
Step 4: *NEW* Program and policy requiring replacement of existing affordable units Government Code Section 65583.2(g)(3)
The housing element must include a program in the housing element and policy independent of the housing element requiring the replacement of units affordable to the same or lower income level as a condition of any development on a nonvacant site consistent with those requirements set forth in Density Bonus Law (Government Code section 65915(c)(3).) Replacement requirements shall be required for sites identified in the inventory that currently have residential uses, or within the past five years have had residential uses that have been vacated or demolished, and:
• Were subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of low or very low-income, or • Subject to any other form of rent or price control through a public entity’s valid exercise of its police power, or
• Occupied by low or very low-income households
For the purpose of this program “previous five years” is based on the date the application for development was submitted.
Please note, until 2025, pursuant to Government Code section 66300(d) (Chapter 654, Statutes of 2019 (SB 330)), an affected city or county shall not approve a housing development project that will require the demolition of residential dwelling units regardless of whether the parcel was listed in the inventory unless a) the project will create at least as many residential dwelling units as will be demolished, and b) certain affordability criteria are met. A listing of affected cities and counties can be found at https://www.hcd.ca.gov/community-development/accountability-enforcement/statutorydeterminations.shtml.
Site Inventory Guidebook Page 29 May 2020
SAMPLE PROGRAM
Program X: Replacement Unit Program
XXXX will adopt a policy and will require replacement housing units subject to the requirements of Government Code section 65915, subdivision (c)(3) on sites identified in the site inventory when any new development (residential, mixed-use or nonresidential) occurs on a site that is identified in the inventory meeting the following conditions:
• currently has residential uses or within the past five years has had residential uses that have been vacated or demolished, and
• was subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of low or very low-income, or • subject to any other form of rent or price control through a public entity’s valid exercise of its police power, or
• occupied by low or very low-income households
Funding: General Funds
Responsible Parties: Planning and Community Development Department Objectives: In order to mitigate the loss of affordable housing units, require new housing developments to replace all affordable housing units lost due to new development.
Timeframes: The replacement requirement will be implemented immediately and applied as applications on identified sites are received and processed, and local policy shall be adopted by <DATE>. End of Sample Program
NEXT STEP:
• Move to Part E: Determination of Adequate Sites
Site Inventory Guidebook Page 30 May 2020
PART E: DETERMINATION OF ADEQUATE SITES
The last step in this process is a determination of whether the housing element demonstrates sufficient land suitable and available for residential development to meet the locality’s housing need for each designated income level or if further program actions are required to accommodate a shortfall.
Step 1: Consider any alternative means of meeting the RHNA Government Code section 65583.1
The housing element may satisfy its RHNA requirement though a variety of methods other than identifying sites. The following is a description of those alternative methods. • Units permitted, built, entitled or pending: (See Part A, Step 1) • Potential for accessory dwelling units (ADU) or junior accessory dwelling units (JADU):
The jurisdiction can count the potential for the development of ADUs within the planning period. The analysis is based on the following factors:
- the number of ADUs or JADUs developed in the prior planning period - community need and demand for these types of housing units - the resources and/or incentives available that will encourage the development of ADUs
- the availability of ADUs and JADUs for occupancy, rather than used as offices or guest houses
- the unit must meet the Census definition of a housing unit, which can be found on the U.S. Census Bureau website, and be reported to the Department of Finance as part of the annual City and County Housing Unit Change Survey - the anticipated affordability of these units. The purpose of this analysis is to determine the appropriate RHNA income category to be accommodated through ADU and JADU development.
Affordability can be determined in a number of ways. As an example, a community could survey existing ADUs and JADUs for their current market rents and consider other factors such as square footage, number of bedrooms, amenities, age of the structure and general location, including proximity to public transportation. Another method could examine current market rents for reasonably comparable rental properties to determine an average price per square foot in the community. This price can be applied to anticipated sizes of these units to estimate the anticipated affordability of ADUs and JADUs. Available regional studies and methodology on ADU affordability can also be a resource to determine the likely affordability mix for ADUs and JADUs.
- other relevant factors as determined by HCD.
In addition, the housing element must describe and analyze any currently adopted ordinance and other factors that could affect ADU and JADU development within the planning period. At a minimum, the housing element should analyze whether the ordinance conforms with state ADU and JADU requirements and any additional development standards (i.e., setbacks, maximum unit sizes, lot coverage, etc.) adopted by the local government, zones allowing ADUs, fees and exactions, and any other potential constraints impacting the development of ADUs and JADUs.
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Impact of New Accessory Dwelling Unit Laws
Since 2017, the Legislature has passed a series of new laws that significantly increase the potential for development of new ADUs and JADUs by removing development barriers, allowing ADUs through ministerial permits, and requiring jurisdictions to include programs in their housing element that incentivize their development. As a result, using trend analysis when estimating the potential for development may not accurately reflect the increased potential for these units. To account for this increased potential, HCD recommends the following options when performing this analysis:
• Use the trends in ADU construction since January 2018 to estimate new production.
This is a conservative option to only account for the effect of the new laws without local promotional efforts or incentives (safe harbor option). • Where no other data is available, assume an average increase of five times the previous planning period construction trends prior to 2018. This option is a conservative estimate based upon statewide data on ADU development since the implementation of the new laws (safe harbor option).
• Use trends from regional production of ADUs.
• Include programs that aggressively promote and incentivize ADU and JADU construction.
• Other analysis (reviewed on a case-by-case basis).
Potential affordability of these units must still be calculated per the analysis outlined on the previous page. In addition to the above options, the element should also include a monitoring program that a) tracks ADU and JADU creation and affordability levels, and b) commits to a review at the planning cycle mid-point to evaluate if production estimates are being achieved. Depending on the finding of that review, amendments to the housing element may be necessary, including rezoning pursuant to Government Code 65583.2 (h)and (i). End ADU explanation
• Alternative Adequate sites: Under limited circumstances, a local government may credit up to 25 percent of their adequate sites requirement per income category through existing units that will be:
- substantially rehabilitated
- in a multifamily rental or ownership housing complex of three or more units that are converted from non affordable to affordable rental
- preserved at levels affordable to low- or very low-income households, where the local government has provided those units with committed assistance For more information on this option, please refer to HCD’s Building Blocks Webpage • Manufactured housing, manufactured housing park hook-ups, floating homes/live aboard berths: In certain circumstances a jurisdiction can utilize the potential for new manufactured housing either in a manufactured housing park or on large properties in rural areas, or new floating home/liveaboard berths with sewer and water hook ups. In cases of a manufactured home park or in floating home/liveaboard berth marinas, the jurisdiction may count new spaces with infrastructure hook-ups intended for permanent residential occupancy and reported to the Department of Finance. Potential for manufactured homes in rural areas should be analyzed using the same factors as those
Site Inventory Guidebook Page 32 May 2020
for potential ADUs, including establishing the market rate affordability of the units and crediting them to the appropriate RHNA category. In addition, the analysis should indicate if appropriate water and sewer infrastructure is available to support the development.
• Former military housing: Sites that contain permanent housing units located on a military base undergoing closure or conversion as a result of action pursuant to the Defense Authorization Amendments and Base Closure and Realignment Act (Public Law 100-526), the Defense Base Closure and Realignment Act of 1990 (Public Law 101-510), or any subsequent act requiring the closure or conversion of a military base may be identified as an adequate site if the housing element demonstrates that the housing units will be available for occupancy by households within the planning period of the housing element. No sites containing housing units scheduled or planned for demolition or conversion to nonresidential uses shall qualify as an adequate site. • In consultation with HCD, other alternatives may be considered, such as motel conversions, adaptive reuse of existing buildings, or legalization of units not previously reported to the Department of Finance.
Step 2: Determine whether there is sufficient capacity to accommodate the RHNA for the jurisdiction by income.
Government Code Section 65583(a)(3)
The following table is an example of that calculation:
Adjustment Factor Very Low Low Moderate Above
Moderate
RHNA 300 200 165 465
Entitled, Permitted, or Constructed
Project Projects
50 50 0 200
Accessory Dwelling Unit Potential 10 15 15 10
Adequate Sites Alternative
Preservation
20 16
Multifamily Residential
R-3 (Vacant)
75 50
Mixed Use MU (Nonvacant) 75 50 50
Multifamily Residential (Vacant) R-2 75
Single-Family (Vacant) R-1 200
Spring Valley Specific Plan 150 250
Total 230 181 290 660
Shortfall/Surplus -70 -19 +125 +195
While the jurisdiction has sufficient sites to accommodate its RHNA for moderate- and above moderate-income units, it has a shortfall of 89 units to accommodate its lower income need. The jurisdiction would be required to include a program in the housing element to accommodate that shortfall.
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If Yes: Congratulations, the site inventory analysis is complete If No: Move to Step 3
Step 3: Adequate Sites Program
Government Code section 65583(f) and Government Code section 65583.2(h) Where the inventory of sites does not identify adequate sites to accommodate the RHNA for lower income households, a program must be included to identify sites that can be developed for housing within the planning period. The housing element should include an inventory of potential sites for rezoning. Those sites must meet the adequate sites requirements in terms of the suitability and availability outlined above.
General Program Requirements
A jurisdiction’s adequate sites program must accommodate 100 percent of the shortfall of sites necessary to accommodate the remaining housing need for housing for very low- and low-income households during the planning period and include the following components:
• Permit owner-occupied and rental multifamily uses by right for developments in which 20 percent or more of the units are affordable to lower income households. By right means local government review must not require a conditional use permit, planned unit development permit, or other discretionary review or approval. • Permit the development of at least 16 units per site. • Ensure sites within suburban and metropolitan jurisdictions — as defined by Government Code Section 65583.2(c)(3)(B)(iii) and (iv) — permit a minimum of 16 dwelling units per acre for incorporated cities within nonmetropolitan/rural counties and nonmetropolitan counties with micropolitan areas or 20 dwelling units per acre for suburban and metropolitan jurisdictions.
• Ensure a) at least 50 percent of the shortfall of low- and very low-income regional housing need can be accommodated on sites designated for exclusively residential uses, or b) if accommodating more than 50 percent of the low- and very low-income regional housing need on sites designated for mixed-uses, all sites designated for mixed-uses must allow 100 percent residential use and require residential use to occupy at least 50 percent of the floor area in a mixed-use project.
Timing
Rezones due to a shortfall from the current planning period:
A locality’s ability to accommodate needed housing during the planning period requires designating appropriate zoning as early as possible. Generally, however, a rezoning should occur no later than three years and 120 days from the beginning of the planning period. A one-year extension to the deadline to complete required rezoning may be allowed if a local government has completed rezoning at sufficient densities to accommodate at least 75 percent of the units for very-low and low-income households. Also, the jurisdiction must determine after a public meeting that substantial evidence supports findings and adoption of a resolution that the rezone deadline was not met due to one of the following reasons:
• Action or inaction beyond the control of the local government of any other state, federal, or local agency.
• Infrastructure deficiencies due to fiscal or regulatory constraints.
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• The local government must undertake a major revision to its general plan in order to accommodate the housing-related policies of a sustainable communities strategy or an alternative planning strategy adopted pursuant to Section 65080.
The jurisdiction must provide HCD a copy of the resolution and findings along with: - a detailed budget and schedule for preparation and adoption of required rezoning within one year of the adoption of the resolution, - plans for citizen participation, and - expected interim actions to complete the rezoning, and any revisions to the general plan (Government Code section 65583(f).
Consequences for Failing to Complete Rezoning Deadline:
If a local government fails to complete all rezoning’s by the prescribed deadline, a local government may not disapprove a housing development project7, nor require a conditional use permit, planned unit development permit, or other locally imposed discretionary permit, or impose a condition that would render the project infeasible, if the housing development project:
• Is proposed to be located on a site included in a housing element program to be rezoned.
• Complies with applicable objective general plan and zoning standards and criteria, including design review standards, described in the rezone program action.
However, any subdivision of the site is subject to the Subdivision Map Act.
A jurisdiction may disapprove a housing development or approve it upon the condition that the project be developed at a lower density only if it makes written findings supported by substantial evidence on the record that both of the following conditions exist:
• The housing development project would have a specific, adverse impact upon the public health or safety8.
• There is no feasible method to satisfactorily mitigate or avoid the adverse impact.
The local government may also be subject to enforcement actions by HCD, including a determination that the housing element no longer complies with the requirements of state law and referral to the Attorney General pursuant to Government Code section 65585(i) and (j).
7 “Housing development project” is defined a project to construct residential units for which the project developer provides sufficient legal commitments to the appropriate legal agency to ensure the continued availability and use of at least 49 percent of the housing units for very-low, low-, and moderate-income households with an affordable housing cost or affordable rent. 8 “Specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete.
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Housing Accountability Act and the Housing Element
The Housing Accountability Act (Government Code section 65589.5) establishes state overarching policy that a local government not deny, reduce the density of, or make infeasible housing development projects, emergency shelters, or farmworker housing that are consistent with objective local development standards and contribute to meeting housing need. Jurisdictions without a housing element in compliance with State Housing Element Law or without a complete site inventory are further limited in the ability to deny a housing development application.
Among other requirements (including those related to housing development regardless of affordability levels), the Housing Accountability Act states that a local agency shall not disapprove or condition approval in a manner that renders the housing development project infeasible, including through the use of design review standards, for development of an emergency shelter or a housing development project for very low, low-, or moderateincome households unless it makes written findings, based upon a preponderance of the evidence in the record, as to one of the following:
• The jurisdiction has adopted a housing element in substantial compliance with Housing Element Law and the jurisdiction has met or exceeded its share of the RHNA for the planning period for the income category proposed for the housing development project. • The project would have a specific, adverse impact upon the public health or safety, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low- and moderate-income households or rendering the development of the emergency shelter financially infeasible.
• The denial of the project or imposition of conditions is required in order to comply with specific state or federal law, and there is no feasible method to comply without rendering the development unaffordable or rendering the development of the emergency shelter financially infeasible.
• The project is proposed on land zoned for agriculture or resource preservation, or which does not have adequate water or wastewater facilities to serve the project. • The project is inconsistent with both the jurisdiction’s zoning ordinance and general plan land use designation, unless the housing development project is proposed on a site that is identified as suitable or available for very low, low-, or moderate-income households in the jurisdiction’s housing element, or if the local agency has failed to identify in the inventory of land in its housing element sites that can be developed for housing within the planning period and are sufficient to provide for the jurisdiction’s share of the regional housing need for all income levels pursuant to Section 65584. “Housing for very low, low-, or moderate-income households” means where at least 20 percent of the total units are or will be sold or rented to lower income households or 100 percent of the units will be sold or rented to persons and families of moderate income, or persons and families of middle income. End Housing Accountability Act explanation.
Site Inventory Guidebook Page 36 May 2020
Rezoned due to an unaccommodated need from previous planning period9:
Pursuant to Government Code section 65584.09, if the jurisdiction failed to make adequate sites available to accommodate the regional housing need in the prior planning period, the jurisdiction must zone or rezone sites to accommodate any unaccommodated need within the first year of the planning period. If more than one year has lapsed since the beginning of the planning period, the housing element cannot be found in compliance with Housing Element Law until the required zoning or rezoning is complete and the housing element is amended to reflect the necessary rezoning.
Annexation
If the jurisdiction must rely on annexation to accommodate its RHNA, the housing element must include a program committing to completing the annexation within three years of the planning period. In addition, the housing element must also include an evaluation of the suitability of the annexed sites, including the following information:
• Consistency with Local Agency Formation Commission (LAFCO) policies • Actions to pre-zone prior to annexation
• Descriptions of the zone, density, development standards and design requirements • The anticipated housing capacity allowed by each site • Timeline to complete annexation which is early enough in the planning period to facilitate development of annexed sites (e.g., within the first three years of the planning period)
• Analysis of the suitability and availability of sites, including identification of any sites currently under Williamson Act contracts
• Demonstrated compliance with the requirements of the adequate sites program requirements of Government Code section 65583.2, subdivisions (h) and (i) Please note, if the potential for annexation was not included in the RHNA allocation methodology, a portion of the county’s allocation may be transferred to the city pursuant to Government Code section 65584.07(d). This transfer of RHNA would require an amendment to the housing element to ensure that any additional RHNA can be accommodated on sites within the inventory. End annexation explanation. 9 Sometimes called the AB 1233 consequence.
Site Inventory Guidebook Page 37 May 2020
Sample Rezone Program:
To accommodate the remaining lower-income RHNA of 89 units, the City of X will identify and rezone a minimum of 4.5 acres of vacant land to the R3 zoning district, allowing exclusively residential uses and a minimum of 20 units per acre to a maximum of 30 units per acre by June 30, 2024. Rezoned sites will permit owner-occupied and rental multifamily uses by right pursuant to Government Code section 65583.2(i) for developments in which 20 percent or more of the units are affordable to lower income households and will be selected from sites 20 through 30 in the parcel listing (Appendix A). As reflected in Appendix A, each site has the capacity to accommodate at least 16 units and will be available for development in the planning period where water, sewer, and dry utilities can be provided.
Objective: Create opportunity for at least 89 units of multifamily housing for lower income households
Responsible Agency: Community Development Department
Timeline: Sites rezoned by June 30, 2024
Funding Source(s): General fund
Other program ideas for increasing capacity or facilitating development on identified sites:
• Up-zone existing neighborhoods in areas of opportunity or in high quality neighborhood transit areas at appropriate densities to facilitate development of housing. • Increase maximum allowable residential densities in existing residential, commercial, and mixed-use zones and modify development standards, such as height limitations to ensure maximum density can be achieved.
• Establish minimum densities — Designate minimum densities of development to ensure that existing available land is not underutilized.
• Allow and encourage mixed-use zoning — Permit housing in certain nonresidential zones either as part of a mixed-use project or as a standalone residential use. • Rezone underutilized land from nonresidential to residential to expand the supply of available residential land.
• Institute flexible zoning — Allow various residential uses within existing nonresidential zones without requiring rezoning or conditional approvals. • Redevelop and/or recycle underutilized existing land to more intensive uses. • Convert obsolete, older public/institutional/commercial/industrial buildings to residential use through adaptive reuse and/or historic preservation. • Over-zone — Create a surplus of land for residential development during the current planning period of at least 20 percent more than the locality’s share of the regional housing need. Over-zoning compensates for urban land left vacant due to ownership and development constraints and creates a real surplus. A sufficient supply of land beyond the time frame of the housing element helps prevent land shortages from bidding up land costs.
• Allow and promote small and irregular-size lot development.
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• Consolidate lots — Facilitate combining small residential lots into larger lots to accommodate higher-density development.
• Increase height limitations — At a minimum, allow three stories in multifamily zones. • Increase Floor Area Ratios — Allow for larger buildings on smaller lots and/or more units per lot by reducing the floor area ratio (total lot area divided by the total building area).
• Identify publicly owned land suitable for affordable housing development and sell parcels for $1 (with consideration of the Surplus Land Act as amended by AB 1486, Statutes of 2019).
• Facilitate development by encouraging staff outreach to owners of potential sites and affordable housing developers to discuss needs and constraints in the jurisdiction. • Adopt incentives such as a super density bonus or by right approval for housing that meets community objectives, such as housing near transit, affordability, housing that meets the needs of special populations, etc.
• Adopt a specific plan that streamlines CEQA compliance.
Common Program Questions and Answers for Shortfall Zoning:
Q: How do I establish the density range for a rezone site? A: The density range is set at the minimum density (either 16 or 20 dwelling units per acre, depending on the jurisdiction). While there is no specific maximum density requirement, the range must include the density that was identified as appropriate to accommodate housing affordable to lower-income households (Part B, Step 2).
However, jurisdictions should not set the minimum and maximum density range at the same density (e.g., 20 units per acre minimum as both a minimum and maximum density).
If identifying a narrow density range, the housing element must analyze the range as a potential governmental constraint on housing development, including potential impacts resulting from site constraints, financial considerations, and other development factors.
Q: If a development is proposed with less than 20 percent affordability to lower income, can the jurisdiction approve it?
A: Yes, however, the project would not qualify for the by right provisions of this law unless the underlining zone already permitted housing by right. This, and all housing development projects, is subject to the Housing Accountability Act. In addition, the jurisdiction may be subject to No Net Loss Law provisions.
Q: How is the 20 percent calculated when State Density Bonus Law is added? A: This 20 percent calculation is based upon the total number of units in the development including additional units provided by a density bonus. This calculation methodology is consistent with several other pieces of housing laws, including the Streamlined Ministerial Approval Process (Government Code section 65913.4) and the Housing Accountability Act.
End Questions and Answers
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ATTACHMENT 1: SUMMARY OF NEW LAWS REFERENCED IN THE
GUIDEBOOK
AB 1397, Low (Chapter 375, Statutes of 2017): The law made a number of revisions to the site inventory analysis requirements of Housing Element Law. In particular, it requires stronger justification when nonvacant sites are used to meet housing needs, particularly for lower income housing, requires by right housing when sites are included in more than one housing element, and adds conditions around size of sites, among others.
AB 686, Santiago (Chapter 958, Statutes of 2018): The law ensures that public entities, including local governments, administer their programs relating to housing and urban development in a manner affirmatively to further the purposes of the federal Fair Housing Act and do not take any action that is materially inconsistent with its obligation to affirmatively further fair housing. It also requires that housing elements of each city and county promote and affirmatively further fair housing opportunities throughout the community for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics protected by the California Fair Employment and Housing Act, Government Code Section 65008, and any other state and federal fair housing and planning law. AB 686 requires jurisdictions to conduct an assessment of fair housing in the housing element, prepare the housing element site inventory through the lens of affirmatively furthering fair housing, and include program(s) to affirmatively further fair housing.
SB 6, Beall (Chapter 667, Statutes of 2019): Jurisdictions are required to prepare the site inventory on forms developed by HCD and send an electronic version with their adopted housing element to HCD. HCD will then send those inventories to the Department of General Services by December 31 each year. The law (?) authorizes HCD to review, adopt, amend, and repeal the standards, forms, or definitions to implement this subdivision and subdivision (a) of Section 65583.
AB 1486, Ting (Chapter 644, Statutes of 2019): The law expanded the definition of surplus land and added additional requirements on the disposal of surplus land. In addition, local agencies must send notices of availability to interested entities on a list maintained by HCD. This list and notices of availability are maintained on HCD's website. Local agencies must also send a description of the notice and subsequent negotiations for the sale of the land, which HCD must review, and within 30 days submit written finding of violations of law.
Violations of the Surplus Land Act can be referred to the Attorney General. Finally, it adds a requirement in Housing Element Law for the jurisdiction to identify which of the sites included in the inventory are surplus property.
Site Inventory Guidebook Page 40 May 2020
ATTACHMENT 2: GOVERNMENT CODE SECTION 65583.2
As of January 1, 2020
(a) A city’s or county’s inventory of land suitable for residential development pursuant to paragraph (3) of subdivision (a) of Section 65583 shall be used to identify sites throughout the community, consistent with paragraph (9) of subdivision (c) of Section 65583, that can be developed for housing within the planning period and that are sufficient to provide for the jurisdiction’s share of the regional housing need for all income levels pursuant to Section 65584. As used in this section, “land suitable for residential development” includes all of the sites that meet the following standards set forth in subdivisions (c) and (g):
(1) Vacant sites zoned for residential use.
(2) Vacant sites zoned for nonresidential use that allows residential development. (3) Residentially zoned sites that are capable of being developed at a higher density, including sites owned or leased by a city, county, or city and county. (4) Sites zoned for nonresidential use that can be redeveloped for residential use, and for which the housing element includes a program to rezone the site, as necessary, rezoned for, to permit residential use, including sites owned or leased by a city, county, or city and county.
(b) The inventory of land shall include all of the following:
(1) A listing of properties by assessor parcel number.
(2) The size of each property listed pursuant to paragraph (1), and the general plan designation and zoning of each property.
(3) For nonvacant sites, a description of the existing use of each property. If a site subject to this paragraph is owned by the city or county, the description shall also include whether there are any plans to dispose of the property during the planning period and how the city or county will comply with Article 8 (commencing with Section 54220) of Chapter 5 of Part 1 of Division 2 of Title 5.
(4) A general description of any environmental constraints to the development of housing within the jurisdiction, the documentation for which has been made available to the jurisdiction. This information need not be identified on a site-specific basis. (5) (A) A description of existing or planned water, sewer, and other dry utilities supply, including the availability and access to distribution facilities. (B) Parcels included in the inventory must have sufficient water, sewer, and dry utilities supply available and accessible to support housing development or be included in an existing general plan program or other mandatory program or plan, including a program or plan of a public or private entity providing water or sewer service, to secure sufficient water, sewer, and dry utilities supply to support housing development. This paragraph does not impose any additional duty on the city or county to construct, finance, or otherwise provide water, sewer, or dry utilities to parcels included in the inventory. (6) Sites identified as available for housing for above moderate-income households in areas not served by public sewer systems. This information need not be identified on a sitespecific basis. (7) A map that shows the location of the sites included in the inventory, such as the land use map from the jurisdiction’s general plan, for reference purposes only.
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(c) Based on the information provided in subdivision (b), a city or county shall determine whether each site in the inventory can accommodate the development of some portion of its share of the regional housing need by income level during the planning period, as determined pursuant to Section 65584. The inventory shall specify for each site the number of units that can realistically be accommodated on that site and whether the site is adequate to accommodate lower income housing, moderate-income housing, or above moderate-income housing. A nonvacant site identified pursuant to paragraph (3) or (4) of subdivision (a) in a prior housing element and a vacant site that has been included in two or more consecutive planning periods that was not approved to develop a portion of the locality’s housing need shall not be deemed adequate to accommodate a portion of the housing need for lower income households that must be accommodated in the current housing element planning period unless the site is zoned at residential densities consistent with paragraph (3) of this subdivision and the site is subject to a program in the housing element requiring rezoning within three years of the beginning of the planning period to allow residential use by right for housing developments in which at least 20 percent of the units are affordable to lower income households. An unincorporated area in a nonmetropolitan county pursuant to clause (ii) of subparagraph (B) of paragraph (3) shall not be subject to the requirements of this subdivision to allow residential use by right. The analysis shall determine whether the inventory can provide for a variety of types of housing, including multifamily rental housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing. The city or county shall determine the number of housing units that can be accommodated on each site as follows:
(1) If local law or regulations require the development of a site at a minimum density, the department shall accept the planning agency’s calculation of the total housing unit capacity on that site based on the established minimum density. If the city or county does not adopt a law or regulation requiring the development of a site at a minimum density, then it shall demonstrate how the number of units determined for that site pursuant to this subdivision will be accommodated.
(2) The number of units calculated pursuant to paragraph (1) shall be adjusted as necessary, based on the land use controls and site improvements requirement identified in paragraph (5) of subdivision (a) of Section 65583, the realistic development capacity for the site, typical densities of existing or approved residential developments at a similar affordability level in that jurisdiction, and on the current or planned availability and accessibility of sufficient water, sewer, and dry utilities. (A) A site smaller than half an acre shall not be deemed adequate to accommodate lower income housing need unless the locality can demonstrate that sites of equivalent size were successfully developed during the prior planning period for an equivalent number of lower income housing units as projected for the site or unless the locality provides other evidence to the department that the site is adequate to accommodate lower income housing. (B) A site larger than 10 acres shall not be deemed adequate to accommodate lower income housing need unless the locality can demonstrate that sites of equivalent size were successfully developed during the prior planning period for an equivalent number of lower income housing units as projected for the site or unless the locality provides other evidence to the department that the site can be developed as lower income housing. For purposes of this subparagraph, “site” means that portion of a parcel or parcels designated to accommodate lower income housing needs pursuant to this subdivision.
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(C) A site may be presumed to be realistic for development to accommodate lower income housing need if, at the time of the adoption of the housing element, a development affordable to lower income households has been proposed and approved for development on the site.
(3) For the number of units calculated to accommodate its share of the regional housing need for lower income households pursuant to paragraph (2), a city or county shall do either of the following:
(A) Provide an analysis demonstrating how the adopted densities accommodate this need.
The analysis shall include, but is not limited to, factors such as market demand, financial feasibility, or information based on development project experience within a zone or zones that provide housing for lower income households.
(B) The following densities shall be deemed appropriate to accommodate housing for lower income households:
(i) For an incorporated city within a nonmetropolitan county and for a nonmetropolitan county that has a micropolitan area: sites allowing at least 15 units per acre. (ii) For an unincorporated area in a nonmetropolitan county not included in clause (i): sites allowing at least 10 units per acre.
(iii) For a suburban jurisdiction: sites allowing at least 20 units per acre. (iv) For a jurisdiction in a metropolitan county: sites allowing at least 30 units per acre. (d) For purposes of this section, a metropolitan county, nonmetropolitan county, and nonmetropolitan county with a micropolitan area shall be as determined by the United States Census Bureau. A nonmetropolitan county with a micropolitan area includes the following counties: Del Norte, Humboldt, Lake, Mendocino, Nevada, Tehama, and Tuolumne and other counties as may be determined by the United States Census Bureau to be nonmetropolitan counties with micropolitan areas in the future. (e) (1) Except as provided in paragraph (2), a jurisdiction shall be considered suburban if the jurisdiction does not meet the requirements of clauses (i) and (ii) of subparagraph (B) of paragraph (3) of subdivision (c) and is located in a Metropolitan Statistical Area (MSA) of less than 2,000,000 in population, unless that jurisdiction’s population is greater than 100,000, in which case it shall be considered metropolitan. A county, not including the City and County of San Francisco, shall be considered suburban unless the county is in an MSA of 2,000,000 or greater in population in which case the county shall be considered metropolitan.
(2) (A) (i) Notwithstanding paragraph (1), if a county that is in the San Francisco-OaklandFremont California MSA has a population of less than 400,000, that county shall be considered suburban. If this county includes an incorporated city that has a population of less than 100,000, this city shall also be considered suburban. This paragraph shall apply to a housing element revision cycle, as described in subparagraph (A) of paragraph (3) of subdivision (e) of Section 65588, that is in effect from July 1, 2014, to December 31, 2028, inclusive.
(ii) A county subject to this subparagraph shall utilize the sum existing in the county’s housing trust fund as of June 30, 2013, for the development and preservation of housing affordable to low- and very low-income households.
(B) A jurisdiction that is classified as suburban pursuant to this paragraph shall report to the Assembly Committee on Housing and Community Development, the Senate Committee on
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Housing, and the Department of Housing and Community Development regarding its progress in developing low- and very low income housing consistent with the requirements of Section 65400. The report shall be provided three times: once, on or before December 31, 2019, which report shall address the initial four years of the housing element cycle, a second time, on or before December 31, 2023, which report shall address the subsequent four years of the housing element cycle, and a third time, on or before December 31, 2027, which report shall address the subsequent four years of the housing element cycle and the cycle as a whole. The reports shall be provided consistent with the requirements of Section 9795.
(f) A jurisdiction shall be considered metropolitan if the jurisdiction does not meet the requirements for “suburban area” above and is located in an MSA of 2,000,000 or greater in population, unless that jurisdiction’s population is less than 25,000 in which case it shall be considered suburban.
(g) (1) For sites described in paragraph (3) of subdivision (b), the city or county shall specify the additional development potential for each site within the planning period and shall provide an explanation of the methodology used to determine the development potential. The methodology shall consider factors including the extent to which existing uses may constitute an impediment to additional residential development, the city’s or county’s past experience with converting existing uses to higher density residential development, the current market demand for the existing use, an analysis of any existing leases or other contracts that would perpetuate the existing use or prevent redevelopment of the site for additional residential development, development trends, market conditions, and regulatory or other incentives or standards to encourage additional residential development on these sites.
(2) In addition to the analysis required in paragraph (1), when a city or county is relying on nonvacant sites described in paragraph (3) of subdivision (b) to accommodate 50 percent or more of its housing need for lower income households, the methodology used to determine additional development potential shall demonstrate that the existing use identified pursuant to paragraph (3) of subdivision (b) does not constitute an impediment to additional residential development during the period covered by the housing element. An existing use shall be presumed to impede additional residential development, absent findings based on substantial evidence that the use is likely to be discontinued during the planning period.
(3) Notwithstanding any other law, and in addition to the requirements in paragraphs (1) and (2), sites that currently have residential uses, or within the past five years have had residential uses that have been vacated or demolished, that are or were subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of low or very low income, subject to any other form of rent or price control through a public entity’s valid exercise of its police power, or occupied by low or very low income households, shall be subject to a policy requiring the replacement of all those units affordable to the same or lower income level as a condition of any development on the site.
Replacement requirements shall be consistent with those set forth in paragraph (3) of subdivision (c) of Section 65915.
(h) The program required by subparagraph (A) of paragraph (1) of subdivision (c) of Section 65583 shall accommodate 100 percent of the need for housing for very low and low-income households allocated pursuant to Section 65584 for which site capacity has not been identified in the inventory of sites pursuant to paragraph (3) of subdivision (a) on sites that shall be zoned to permit owner-occupied and rental multifamily residential use by right
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for developments in which at least 20 percent of the units are affordable to lower income households during the planning period. These sites shall be zoned with minimum density and development standards that permit at least 16 units per site at a density of at least 16 units per acre in jurisdictions described in clause (i) of subparagraph (B) of paragraph (3) of subdivision (c), shall be at least 20 units per acre in jurisdictions described in clauses (iii) and (iv) of subparagraph (B) of paragraph (3) of subdivision (c) and shall meet the standards set forth in subparagraph (B) of paragraph (5) of subdivision (b). At least 50 percent of the very low and low-income housing need shall be accommodated on sites designated for residential use and for which nonresidential uses or mixed uses are not permitted, except that a city or county may accommodate all of the very low and lowincome housing need on sites designated for mixed uses if those sites allow 100 percent residential use and require that residential use occupy 50 percent of the total floor area of a mixed-use project.
(i) For purposes of this section and Section 65583, the phrase “use by right” shall mean that the local government’s review of the owner-occupied or multifamily residential use may not require a conditional use permit, planned unit development permit, or other discretionary local government review or approval that would constitute a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code.
Any subdivision of the sites shall be subject to all laws, including, but not limited to, the local government ordinance implementing the Subdivision Map Act. A local ordinance may provide that “use by right” does not exempt the use from design review. However, that design review shall not constitute a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code. Use by right for all rental multifamily residential housing shall be provided in accordance with subdivision (f) of Section 65589.5. (j) Notwithstanding any other provision of this section, within one-half mile of a SonomaMarin Area Rail Transit station, housing density requirements in place on June 30, 2014, shall apply.
(k) For purposes of subdivisions (a) and (b), the department shall provide guidance to local governments to properly survey, detail, and account for sites listed pursuant to Section 65585.
(l) This section shall remain in effect only until December 31, 2028, and as of that date is repealed.
(Amended (as amended by Stats. 2018, Ch. 958, Sec. 3) by Stats. 2019, Ch. 664, Sec.
15.5. (AB 1486) Effective January 1, 2020. Repealed as of December 31, 2028, by its own provisions. See later operative version amended by Sec. 16.5 of Stats. 2019, Ch. 664.)
Address APN
Parcel Size
(Gross Acres)
Draft 2040
General Plan
du/ac
Draft 2040 General Plan Land
Use Designation Zoning Use
Very LowIncome
Capacity
Low-Income
Capacity
ModerateIncome
Capacity
Above
Moderate
Income
Capacity
Total
A - Downtown Area
50 Park Avenue 52901040 0.18 24 Medium Density Residential R-1D Multi-family
Residential 21 21
61 Montebello Way 52901041 0.69 24 Medium Density Residential R-1D Multi-family
Residential
A-3 101 S. Santa Cruz Ave. 52901022 0.80 30 Central Business District C-2 Post Office 24 24 A-7 165 Los Gatos Saratoga Rd. 52904083 0.37 30 Central Business District C-2 Vacant Building 11 11 B - North Santa Cruz Avenue Area
404 N. Santa Cruz Ave. 52907099 0.84 30 Neighborhood Commercial C-1 Los Gatos Shopping
Center
17 10 10 30 67
52907003 0.25 30 Neighborhood Commercial C-1
pp g
Center
430 N. Santa Cruz Ave. 52907004 0.22 30 Neighborhood Commercial C-1 Los Gatos Shopping
Center
432 N. Santa Cruz Ave. 52907094 0.93 30 Neighborhood Commercial C-1 Los Gatos Shopping
Center
C - Los Gatos Lodge Area
50 Los Gatos Saratoga Road 52924032 7.04 40 Mixed Use Commercial CH:PD Los Gatos Lodge 176 88 88 352 52924001 1.49 40 Mixed Use Commercial CH:PD Los Gatos Lodge 52924003 0.28 40 Mixed Use Commercial CH:PD Los Gatos Lodge D - Los Gatos Blvd. Area
D-1 15300 Los Gatos Blvd 42417036 1.60 40 Mixed Use Commercial C-1 Ace Hardware 32 16 16 64 15349 Los Gatos Blvd 42419049 0.34 40 Mixed Use Commercial CH Retail 57 29 29 115 15367 Los Gatos Blvd 42419048 1.20 40 Mixed Use Commercial CH Genuine Automotive 15405 Los Gatos Blvd 42419069 1.34 40 Mixed Use Commercial CH Multi-Tenant Building D-5 15425 Los Gatos Blvd 42419067 1.09 40 Mixed Use Commercial CH Multi-Tenant Building 22 11 11 44 A-2
D-4
Tier 1 - Los Gatos Housing Element Update - Draft Site Selection 6th Cycle (2023-2031)
B-1
C-1
Draft 2040 General Plan Density
ATTACHMENT 2
Address APN
Parcel Size
(Gross Acres)
Draft 2040
General Plan
du/ac
Draft 2040 General Plan Land
Use Designation Zoning Use
Very LowIncome
Capacity
Low-Income
Capacity
ModerateIncome
Capacity
Above
Moderate
Income
Capacity
Total
Los Gatos Blvd 52302005 0.53 40 Mixed Use Commercial C-1 Nob Hill Shopping
Center 68 33 33 134
16535 Camellia Ter 52302006 2.81 40 Mixed Use Commercial C-1 Nob Hill Shopping
Center
D-26 16203 Los Gatos Blvd 52916069 0.79 40 Mixed Use Commercial CH Multi-Tenant Building 16 8 8 32 16492 Los Gatos Blvd 53207086 0.23 20 Neighborhood Commercial C-1 LG Wines & Liquors 12 12 53207085 0.38 20 Neighborhood Commercial C-1 Vacant
E - North 40 Area
14859 Los Gatos Blvd. 42407094 2.90 20 North Forty Specific Plan Area North Forty Specific Plan Area 97 58 58 177 390 16392 Los Gatos Blvd. 42407095 0.78 20 North Forty Specific Plan Area North Forty Specific Plan Area 16260 Burton Rd. 42407053 0.44 20 North Forty Specific Plan Area North Forty Specific Plan Area 16250 Burton Rd. 42407009 0.44 20 North Forty Specific Plan Area North Forty Specific Plan Area 14917 Los Gatos Blvd. 42407081 3.74 20 North Forty Specific Plan Area North Forty Specific Plan Area 42406115 1.17 20 North Forty Specific Plan Area North Forty Specific Plan Area 42406116 0.11 20 North Forty Specific Plan Area North Forty Specific Plan Area 42407010 0.26 20 North Forty Specific Plan Area North Forty Specific Plan Area 42407052 0.43 20 North Forty Specific Plan Area North Forty Specific Plan Area 42407054 0.26 20 North Forty Specific Plan Area North Forty Specific Plan Area 42407063 0.56 20 North Forty Specific Plan Area North Forty Specific Plan Area 42407064 0.93 20 North Forty Specific Plan Area North Forty Specific Plan Area 42407065 0.37 20 North Forty Specific Plan Area North Forty Specific Plan Area 42407116 1.02 20 North Forty Specific Plan Area North Forty Specific Plan Area 14925 Los Gatos Blvd. 42407115 6.07 20 North Forty Specific Plan Area North Forty Specific Plan Area F - Lark Area
42408057 2.97 12 Low Density Residential R-1:8 Vacant 62 37 37 111 247 42408029 0.31 12 Low Density Residential R-1:8 Vacant
42408059 1.01 12 Low Density Residential R-1:8 Vacant
42408060 1.29 12 Low Density Residential R-1:8 Vacant
42408058 1.41 12 Low Density Residential R-1:8 Single-Family Home 42408017 2.48 24 Medium Density Residential R-M:5-12 Single-Family Home 42408021 4.32 24 Medium Density Residential R-M:5-12 Vacant F-2 42408074 6.41 12 Low Density Residential R-1:8 Vacant 19 12 12 34 77 Draft 2040 General Plan Density
D-29
E-1 N40
Phase II
F-1
D-9
Address APN
Parcel Size
(Gross Acres)
Draft 2040
General Plan
du/ac
Draft 2040 General Plan Land
Use Designation Zoning Use
Very LowIncome
Capacity
Low-Income
Capacity
ModerateIncome
Capacity
Above
Moderate
Income
Capacity
Total
G- Winchester Area
G-1 110 Knowles Drive 42432077 7.34 40 High Density Residential CM:AHOZ Office 59 59 88 88 294 I - Union Avenue Area
440 Los Gatos Alamden Rd. 52749048 0.52 20 Neighborhood Commercial C-1 Chevron 16 16 445 Leigh Avenue 52749049 0.29 20 Neighborhood Commercial C-1 Office J - Harwood Area
J-1 14000 Blossom Hill Rd. 52732028 0.69 20 Neighborhood Commercial C-1 Valero 14 14 Subtotal 625 361 390 538 1,914
ADUs 20 60 60 60 200
Pipeline projects 202 202
TOTAL 645 421 450 800 2,316
RHNA Requirements 537 310 320 826 1,993
Buffer (15 percent) 81 46 48 124 299
RHNA + Buffer Total 618 356 368 950 2,292
Difference 27 65 82 -150 24
I-1
Draft 2040 General Plan Density
This Page
Intentionally
Left Blank
Address APN
Parcel Size
(Gross
Acres)
Draft 2040
General Plan
du/ac
Draft 2040 General Plan Land Use
Designation Zoning Use
Very LowIncome
Units
Low-Income
Units
ModerateIncome Units
Above
Moderate
Income Units
Total
A - Downtown Area
A-1 50 University Ave. 52902044 4.50 30 Central Business District C-2:LHP:PD Shopping Center 34 20 20 61 135 A-4 51044039 0.65 30 Central Business District C-2 Town Parking Lot 20 20 A-5 16 Lyndon Ave. 51044044 0.23 30 Central Business District C-2 Gym 7 7 A-6 W Main St. 51044069 0.37 30 Central Business District C-2 Town Parking Lot 11 11 A-15 46 E. Main St. 52929005 0.78 30 Central Business District C-2 Hotel 23 23 A-16 11 College Ave. 52929052 0.93 30 Central Business District C-2 Multi-Tenant Building 28 28 A-17 15 Montebello Way 52901043 1.56 30 Central Business District C-2 Frontier 47 47 A-18 52903029 0.94 30 Central Business District C-2:LHP Town Parking Lot 28 28 A-19 52903067 1.55 30 Central Business District C-2 Town Parking Lot 47 47 A-21 52904101 0.77 30 Central Business District C-2 Town Parking Lot 23 23 A-22 52904082 1.10 30 Central Business District C-2 Town Parking Lot 33 33 A-23 170 Los Gatos Saratoga Rd. 52907060 1.45 30 Central Business District C-2 Town Parking Lot 44 44 A-24 150 N. Santa Cruz Ave. 52903045 0.76 30 Central Business District C-2 Wells Fargo 23 23 A-27 333 N. Santa Cruz Ave. 51014072 0.81 30 Central Business District C-2 Bank of America 24 24 20 Univeristy Ave. 52902010 0.41 30 Central Business District C-2:LHP St. Luke's Church 23 52902009 0.34 30 Central Business District C-2:LHP St. Luke's Church A-30 111 Church St. 52928029 2.37 24 Medium Density Residential R-M:5-12 Methodist Church 14 9 9 25 57 A-31 219 Bean Ave. 51044083 0.97 24 Medium Density Residential R-1D:PD St. Mary's Church 23 23 A-32 238 E. Main St. 52934095 0.72 20 Neighborhood Commercial C-1 First Church 14 14 A-33 57 Broadway 51045081 0.29 24 Medium Density Residential R-1D:LHP Seventh Day Adventist 7 7 A-34 540 N. Santa Cruz Ave. 52907095 0.87 20 Neighborhood Commercial C-1 Sarah Shopping Center 17 17 120 S. Santa Cruz Ave. 51045064 0.45 30 Central Business District C-2:PD Toll House Hotel 14 8 8 24 140 S. Santa Cruz Ave. 51045065 1.36 30 Central Business District C-2:PD Toll House Hotel B - North Santa Cruz Avenue Area
421 N. Santa Cruz Ave. 41016011 1.29 30 Community Commercial C-1 Walgreens Shopping Center 16 10 10 29 65 421 N. Santa Cruz Ave. 41016014 0.08 30 Community Commercial C-1 Walgreens Shopping Center 433 N. Santa Cruz Ave. 41016010 0.78 30 Community Commercial C-1 Walgreens Shopping Center B3 600 N. Santa Cruz Ave. 52910122 1.55 30 Community Commercial C-1 DMV 47 47 B4 101 Blossom Hill Rd. 52911036 1.07 40 Office Professoinal O Office Building 21 11 11 43 Tier 2 - Los Gatos Housing Element Update - Draft Site Selection 6th Cycle (2023-2031)
Draft 2040 General Plan Density
A-29 23
A-37 54
B2
ATTACHMENT 3