Los Gatos City Council
October 3, 2023

How to participate: The Town of Los Gatos strongly encourages your active participation in the public process, which is the cornerstone of democracy. If you wish to speak to an item on the agenda, please follow the participation instructions on page 2 of this agenda. If you wish to speak to an item NOT on the agenda, you may do so during the “Verbal Communications” period, by following the participation instructions on page 2 of this agenda. The time allocated to speakers may change to better facilitate the Town Council meeting.

Effective Proceedings: The purpose of the Town Council meeting is to conduct the business of the community in an effective and efficient manner. For the benefit of the community, the Town of Los Gatos asks that you follow the Town’s meeting guidelines while attending Town Council meetings and treat everyone with respect and dignity. This is done by following meeting guidelines set forth in State law and in the Town Code. Disruptive conduct is not tolerated, including but not limited to: addressing the Town Council without first being recognized; interrupting speakers, Town Council or Town staff; continuing to speak after the allotted time has expired; failing to relinquish the podium when directed to do so; and repetitiously addressing the same subject.

Deadlines for Public Comment and Presentations are as follows:
 Persons wishing to make an audio/visual presentation on any agenda item must submit the presentation electronically, either in person or via email, to the Clerk’s Office no later than 3:00 p.m. on the day of the Council meeting.
 Persons wishing to submit written comments to be included in the materials provided to Town Council must provide the comments as follows:
o For inclusion in the regular packet: by 11:00 a.m. the Thursday before the Council meeting
o For inclusion in any Addendum: by 11:00 a.m. the Monday before the Council meeting o For inclusion in any Desk Item: by 11:00 a.m. on the day of the Council Meeting

TOWN OF LOS GATOS

COUNCIL MEETING AGENDA
OCTOBER 03, 2023
110 EAST MAIN STREET AND TELECONFERENCE

TOWN COUNCIL CHAMBERS

LOS GATOS, CA
7:00 PM
Maria Ristow, Mayor
Mary Badame, Vice Mayor
Matthew Hudes, Council Member
Rob Moore, Council Member
Rob Rennie, Council Member

PARTICIPATION IN THE PUBLIC PROCESS
Town Council Meetings Broadcast Live on KCAT, Channel 15 (on Comcast) on the 1st and 3rd Tuesdays at 7:00 p.m.

Rebroadcast of Town Council Meetings on the 2nd and 4th Tuesdays at 7:00 p.m.

Live & Archived Council Meetings can be viewed by going to:
www.LosGatosCA.gov/TownYouTube

IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN THIS MEETING, PLEASE CONTACT THE CLERK DEPARTMENT AT (408) 354-6834. NOTIFICATION 48 HOURS BEFORE THE MEETING WILL ENABLE THE TOWN TO MAKE REASONABLE ARRANGEMENTS TO ENSURE ACCESSIBILITY TO THIS MEETING [28 CFR §35.102-35.104]

TOWN OF LOS GATOS

COUNCIL MEETING AGENDA
OCTOBER 03, 2023
110 EAST MAIN STREET AND TELECONFERENCE

TOWN COUNCIL CHAMBERS
7:00 PM

IMPORTANT NOTICE
This is a hybrid meeting and will be held in-person at the Town Council Chambers at 110 E.

Main Street and virtually through the Zoom webinar application (log-in information provided below). Members of the public may provide public comments for agenda items in-person or virtually through the Zoom webinar by following the instructions listed below. The live stream of the meeting may be viewed on television and/or online at www.LosGatosCA.gov/TownYouTube.

PARTICIPATION
To provide oral comments in real-time during the meeting:
 Zoom webinar: Join from a PC, Mac, iPad, iPhone or Android device: Please click this URL to join: https://losgatoscagov.zoom.us/j/87922005778?pwd=RnNadElXWEVQd290dDJJVzEwaEw3Zz09 Passcode: 771495. You can also type in 879 2200 5778 in the “Join a Meeting” page on the Zoom website at https://zoom.us/join.

When the Mayor announces the item for which you wish to speak, click the “raise hand” feature in Zoom. If you are participating by phone on the Zoom app, press *9 on your telephone keypad to raise your hand.
 Join by telephone: Join by Telephone: Dial: USA 877 336 1839 US Toll-free or 636 651 0008 US Toll. Conference code: 686100
If you are participating by calling in, press #2 on your telephone keypad to raise your hand.  In-Person: If you wish to speak during the meeting, please complete a “speaker’s card” located on the back of the chamber benches and return it to the Town Clerk. If you wish to speak to an item on the agenda, please list the item number. If you wish to speak on an item NOT on the agenda, please list the subject and you may speak during the “Verbal Communications” period. The time allocated to speakers may change to better facilitate the Town Council meeting.

When called to speak, you may be asked to provide your full name and your town/city of residence. This identifying information is optional and not a requirement for participation. Please limit your comments to three (3) minutes, or such other time as the Mayor may decide, consistent with the time limit for speakers at a Council meeting. If you wish to speak to an item or items on the Consent Calendar, please state which item number(s) you are commenting on at the beginning of your time.

If you are unable to participate in real-time, you may email to [email protected] the subject line “Public Comment Item #__ ” (insert the item number relevant to your comment) or “Verbal Communications – Non-Agenda Item.” Comments received by 11:00 a.m. the day of the meeting will be reviewed and distributed before the meeting. All comments received will become part of the record.

MEETING CALL TO ORDER

ROLL CALL
APPROVE REMOTE PARTICIPATION (This item is listed on the agenda in the event there is an emergency circumstance requiring a Council Member to participate remotely under AB 2449 (Government Code 54953)).

PLEDGE OF ALLEGIANCE

PRESENTATIONS
i. Recognize Faith Leaders Saint Vincent de Paul, Saint Luke's Episcopal Church, and the Los Gatos United Methodist Church.

CLOSED SESSION REPORT

COUNCIL / MANAGER MATTERS
CONSENT ITEMS (Items appearing on the Consent Items are considered routine Town business and may be approved by one motion. Any member of the Council may request to have an item removed from the Consent Items for comment and action. Members of the public may provide input on any or multiple Consent Item(s) when the Mayor asks for public comments on the Consent Items. If you wish to comment, please follow the Participation Instructions contained on

the item will be heard.)

1. Approve the Minutes of the September 12, 2023 Joint Meeting of the Town Council and Planning Commission Study Session.

2. Approve the Minutes of the September 19, 2023 Town Council Meeting.

3. Approve Modifications to Council Policy 2-11 Commission Appointments, Residency and Attendance Requirements, and Establishing a Quorum to Accommodate the Exception to Residency Requirements for the Newly Established Diversity, Equity, and Inclusion Commission.

VERBAL COMMUNICATIONS (Members of the public are welcome to address the Town Council on any matter that is not listed on the agenda. To ensure all agenda items are heard and unless additional time is authorized by the Mayor, this portion of the agenda is limited to 30 minutes and no more than three (3) minutes per speaker. In the event additional speakers were not able to be heard during the initial Verbal Communications portion of the agenda, an additional Verbal Communications will be opened prior to adjournment.)
PUBLIC HEARINGS (Applicants/Appellants and their representatives may be allotted up to a total of five minutes maximum for opening statements. Members of the public may be allotted up to three minutes to comment on any public hearing item. Applicants/Appellants and their representatives may be allotted up to a total of three minutes maximum for closing statements. Items requested/recommended for continuance are subject to Council’s consent at the meeting.)

4. Introduce an Ordinance Titled “An Ordinance of the Town Council of the Town of Los Gatos Amending Section 18.60.020, “Permits for Retailers of Tobacco Products,” of Article VI, “Smoking Regulations,” of Chapter 18, “Offenses and Miscellaneous Provisions,” of the Town Code to Increase Fine Amounts and Amend the Definition of “Tobacco Products” to Align with the Santa Clara County Ordinance.”

5. Consider a Resolution to Amend the General Plan to Include a Description of the Housing Element Overlay Zone and Introduce an Ordinance Titled “An Ordinance of the Town Council of the Town of Los Gatos Amending Chapter 29, “Zoning Regulations,” of the Town Code to Replace the Affordable Housing Overlay Zone Division 5 of Article VIII, “Overlay Zones and Historic Preservation,” With the Housing Element Overlay Zone As Division 5 of Article VIII, “Overlay Zones and Historic Preservation.” An Environmental Impact Report (EIR) was Prepared and Certified for the 2040 General Plan Update on June 30, 2022, Which Included the Proposed General Plan Amendments. No Further Environmental Analysis is Required. Zoning Code Amendment Application Z-23-002 and General Plan Amendment Application GP-23-002. Project Location: Town Wide.

Applicant: Town of Los Gatos.

6. Consider a Resolution to Amend the General Plan Land Use Designation of 16492 Los Gatos Boulevard and Assessor Parcel Number (APN) 532-07-086 from Low Density Residential to Neighborhood Commercial; Amend the General Plan Land Use Designation of Caltrans Right-of-Way Adjacent to 14685 Oka Road from Low Density Residential to Medium Density Residential; and Introduce an Ordinance Titled “An Ordinance of the Town of Los Gatos Amending the Zoning Code from R-1:8 (SingleFamily Residential) To R-M (Multiple-Family Residential) for a Caltrans Right-of-Way Property Located Adjacent to 14685 Oka Road; and Apply the Housing Element Overlay Zone (HEOZ) to Provide for Increases to the Allowable Density, Height, Floor Area Ratio, and Lot Coverage for Residential Development on the Following Sites Included in the Sites Inventory Analysis of the 2023-2031 Housing Element:

APN’s 424-06-116, 424-07-116, 424-08-029, 424-08-058, 424-08-059, 424-08-060, 424- 08-074, and 532-07-085; 620 and 14000 Blossom Hill Road; 16210, 16240, 16245, 16250, 16260, 16270, and 16392 Burton Road; Cal Trans Right-of-Way Adjacent to 14685 Oka Road; 110 and 206 Knowles Drive; 445 Leigh Avenue; 440 Los Gatos Almaden Road; 16603 Lark Avenue; 14823, 14831, 14849, 14859, 14917, 14925, 15795, 16151, 16203, and 16492 Los Gatos Boulevard; 165 Los Gatos Saratoga Road; and 14800 and 14840 Oka Road. “
An Environmental Impact Report (EIR) was Prepared and Certified for the 2040 General Plan Update on June 30, 2022, which Included the Proposed General Plan and Zoning Code Amendments. No further Environmental Analysis is Required. Zoning Code Amendment Application Z-23-003 and General Plan Amendment Application GP-23-003.

Applicant: Town of Los Gatos.

7. Introduce an Ordinance Titled “An Ordinance of the Town Council of the Town of Los Gatos to Apply the Housing Element Overlay Zone (HEOZ) to Provide for Increases to the Allowable Density, Height, Floor Area Ratio, and Lot Coverage for Residential Development on the Following Sites Included in the Site Inventory Analysis of the 2023- 2031 Housing Element: 401 through 409 Alberto Way, 50 Los Gatos-Saratoga Road, 529-24-001, and 529-24-003.” An Environmental Impact Report was Prepared and Certified for the 2040 General Plan Update on June 30, 2022, which Included the

Proposed Zoning Code Amendments. No further Environmental Analysis is Required.

Zoning Code Amendment Application Z-23-003. Applicant: Town of Los Gatos.

8. Introduce an Ordinance Titled “An Ordinance of the Town Council of the Town of Los Gatos to Apply the Housing Element Overlay Zone (HEOZ) to Provide for Increases to the Allowable Density, Height, Floor Area Ratio, and Lot Coverage for Residential Development on the Following Sites Included in the Sites Inventory Analysis of the 2023- 2031 Housing Element: 15300, 15349, 15367, 15405, 15425, 15480, and 15500 Los Gatos Boulevard.” An Environmental Impact Report was Prepared and Certified for the 2040 General Plan Update on June 30, 2022, which Included the Proposed Zoning Code Amendments. No further Environmental Analysis is Required. Zoning Code Amendment Application Z-23-003. Applicant: Town of Los Gatos.

9. Introduce an Ordinance Titled “An Ordinance of the Town Council of the Town of Los Gatos to Apply the Housing Element Overlay Zone (HEOZ) to Provide for Increases to the Allowable Density, Height, Floor Area Ratio, and Lot Coverage for Residential Development on the Following Site Included in the Sites Inventory Analysis of the 2023- 2031 Housing Element: 101 South Santa Cruz Avenue and Apply the Housing Element Overlay Zone.” An Environmental Impact Report was Prepared and Certified for the 2040 General Plan Update on June 30, 2022, which Included the Proposed Zoning Code Amendments. No further Environmental Analysis is Required. Zoning Code Amendment Application Z-23-003. Applicant: Town of Los Gatos.

OTHER BUSINESS (Up to three minutes may be allotted to each speaker on any of the following items.)

10. Discuss and Consider Modifications to the Review Process for Exception Requests to the State Minimum Fire Safe Regulations (Public Resource Code 4290).

11. Rescind Resolution 2023-051 and Adopt a Revised Enabling Resolution for the Diversity, Equity, and Inclusion Commission to Clarify that All Members are Voting Members and that Terms will be Staggered.

12. Adopt a Resolution to Deny an Appeal of a Planning Commission Decision to Approve the Demolition of One Existing Office and Four Residential Buildings, Construction of an Assisted Living and Memory Care Facility, Variance from the Maximum Height and Lot Coverage of the Zone, Merger of Four Lots into One, and Removal of Large Protected Trees on Property Zoned Office. Located at 15860 -15894 Winchester Boulevard and 17484 Shelburne Way. APNs 529-11-013, -038, -039, and -040. Architecture and Site Application S-21-008, Conditional Use Permit Application U-21-010, Variance Application V-21-003, Subdivision Application M-22-008, and Mitigated Negative Declaration ND-22- 001. An Initial Study and Mitigated Negative Declaration Have Been Prepared for This Project. Applicant/Property Owner: Green Valley Corp. d.b.a. Swenson. Appellant: Eric Hulser. Project Planner: Jennifer Armer.

13. Discuss the Housing Element Work Plan.

ADJOURNMENT (Council policy is to adjourn no later than midnight unless a majority of Council votes for an extension of time).

Writings related to an item on the Town Council meeting agenda distributed to members of the Council within 72 hours of the meeting are available for public inspection at the front desk of the Los Gatos Town Library, located at 100 Villa Avenue, and are also available for review on the official Town of Los Gatos website. Copies of desk items distributed to members of the Council at the meeting are available for review in the Town Council Chambers.

Note: In accordance with Code of Civil Procedure §1094.6; litigation challenging a quasi-adjudicatory decision of the Town Council must be brought within 90 days after the decision is final unless a shorter time is required by State or Federal law.

110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 10/03/2023
ITEM NO: 1
DRAFT
Minutes of the Joint Town Council and Planning Commission Study Session Tuesday, September 12, 2023
The Town Council and the Planning Commission of the Town of Los Gatos conducted a special meeting in person and utilizing teleconferencing means on Tuesday, September 12, 2023, at 7:00 p.m. to discuss state laws pertaining to housing.

MEETING CALLED TO ORDER AT 7:00 P.M.

ROLL CALL

Present: Mayor Maria Ristow, Vice Mayor Mary Badame, Council Member Matthew Hudes, Council Member Rob Moore, Council Member Rob Rennie, Commissioner Emily Thomas (arrived 7:36 p.m.), Commissioner Melanie Hanssen, Commissioner Kathryn Janoff, Commissioner Susan Burnett, and Planning Commission Chair Jeffrey Barnett

Absent: Planning Commission Vice Chair Steven Raspe

OTHER BUSINESS

1. Receive and Discuss Information Regarding Statewide Housing Laws that Apply to Applications for Housing Development Projects in the Town.

Gabrielle Whelan, Town Attorney, stated the parameters for discussion and introduced Barbara Kautz.

Joel Paulson stated the locations in which a SB330 pre-application or formal application has been submitted.

Barbara Kautz, consultant, gave a presentation on state housing laws.

The Town Council Members and the Planning Commissioners asked preliminary questions.

Mayor Ristow opened public comment.

Tina Johnson
- Commented on concerns regarding a potential development in the Belwood area, traffic safety, and infrastructure.

James Bowen
- Asked about the transparency of development plans, and environmental impact and traffic studies.

PAGE 2 OF 4
SUBJECT: Draft Minutes of the Special Town Council Meeting of September 12, 2023 DATE: September 12, 2023
April Maiten
- Commented on traffic safety concerns and requested speed humps in the Belwood area.

Jeff Suzuki, Los Gatos Anti-Racism Coalition
- Commented on concerns regarding exclusion of economically disenfranchised communities.

Miles Tasker, Los Gatos Anti Racism Coalition
- Commented on his experience in a lower income household, and requested the Town consider allowing denser development and economically sensible housing.

Ronald Meyer
- Commented on concerns with the Housing Element work plan timeline and the Town’s previous Housing Element consultant.

Sandra Livinghouse
- Commented on concerns with the process of certifying the Housing Element and inquired about the builder’s remedy.

Mike Maiten
- Commented on concerns regarding the approval of the Housing Element and asked about Covenants, Conditions, and Restrictions (CC&Rs).

Alba Levitas
- Commented on concerns with traffic safety in the Belwood area and asked about the process for purchasing land for development.

Tony Alarcon
- Commented on potential legislation to help small Towns’ rights to build more moderate housing and commented on fire safety and traffic concerns.

Lee Fagot
- Commented in support of additional safety requirements for new developments and requested they have multiple access points for vehicles.

Lee Quintana
- Inquired if the Town’s density bonus ordinance is consistent with state law and requested clarification on the Martinez versus the City of Clover decision.

Mitzi Anderson
- Asked a question about builder’s remedy.

PAGE 3 OF 4
SUBJECT: Draft Minutes of the Special Town Council Meeting of September 12, 2023 DATE: September 12, 2023
Bryce Wat
- Inquired about lot size density bonus reductions.

Jak Van Nada
- Inquired about builder’s remedy applications.

Calvin Louie
- Commented on racism and asked questions about the Regional Housing Need Allocation (RHNA) numbers.

Sutton
- Inquired about dates to certify the Housing Element, potential penalties, housing costs per affordability levels, and a study on water and sewer infrastructure.

Bill Kraus
- Commented on racism, inquired if traffic could be considered an objective standard for limiting development, and asked about requiring higher fees for special applications to cover the cost of consultants.

Nika S.
- Commented on her personal experience and the need for affordable housing in Los Gatos.

Jake Wilde
- Commented on the purpose of planning and zoning requirements, concerns with segregation, and requested Los Gatos go above and beyond demands for housing.

Jim Lyon
- Commented on concerns with the cost of building housing, infrastructure, revenue loss from the conversion of commercial to residential, and inquired about property tax revenues.

Ali Miano, Los Gatos Anti-Racism Coalition
- Commented on issues with the unhoused and in support of affordable housing.

Kinsey Lee, Los Gatos Anti-Racism Coalition
- Commented in support of the current Housing Element.

Sandrine Chaumette
- Commented in support of housing for essential workers.

PAGE 4 OF 4
SUBJECT: Draft Minutes of the Special Town Council Meeting of September 12, 2023 DATE: September 12, 2023
Albert Lustre, Carpenters Union Local 405
- Commented on Assembly Bill 2011 related to construction workers and future developments.

Mayor Ristow closed public comment and called a recess at 9:25 p.m.

The meeting reconvened at 9:42 p.m.

Staff answered questions raised during the public comment period.

The Town Council Members and the Planning Commissioners asked additional questions and discussed the information.

ADJOURNMENT
The meeting adjourned at 10:34 p.m.

Respectfully Submitted:
_____________________________________
Jenna De Long, Deputy Town Clerk

110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 10/03/2023
ITEM NO: 2
DRAFT
Minutes of the Town Council Meeting
Tuesday, September 19, 2023
The Town Council of the Town of Los Gatos conducted a regular meeting in person and utilizing teleconferencing means on Tuesday, September 19, 2023, at 7:00 p.m.

MEETING CALLED TO ORDER AT 7:00 P.M.

ROLL CALL

Present: Mayor Maria Ristow, Vice Mayor Mary Badame, Council Member Matthew Hudes, Council Member Rob Moore, Council Member Rob Rennie.

Absent: None

PLEDGE OF ALLEGIANCE
Mayor Ristow led the Pledge of Allegiance. The audience was invited to participate.

COUNCIL/TOWN MANAGER REPORTS
Council Matters
- Council Member Hudes stated he met with the Foundation for Older Adults; attended a Democracy Tent meeting; participated in the Joint Town Council and Planning Commission Study Session, and a Cities Association Legislative Action Committee Meeting. - Council Member Rennie stated he met with the Silicon Valley Clean Energy Authority (SVCEA) Chief Executive Officer (CEO); participated in the SVCEA CEO Search Committee; met with Jim Foley regarding the Tait and Forbes Town properties; attended a SVCEA Board meeting; chaired the Valley Transportation Authority (VTA) Policy Advisory Committee meeting; attended a Cities Association Board meeting; and met with Senator Josh Becker. - Council Member Moore wished Jewish community members a happy New Year for Rosh Hashanah; stated he hosted an event with Senator Josh Becker; hosted his Council Member community coffee monthly meeting and announced the next date; toured the Santa Clara County Fire Department (SCCFD); attended Saratoga and the Campbell's State of the City events, a Jewish Democratic Club of Silicon Valley presentation, the Art and Wine Festival, a West Valley Sanitation District meeting, and variety of meetings including one with the Chief of Staff for West Valley Mission Community College. - Vice Mayor Badame stated she participated in the West Valley Clean Water Authority Board meeting and a West Valley Solid Waste Management Authority Board meeting; attended a Democracy Tent meeting; met with Jesse Bristow with Swenson Builders who is representing the applicant for the Winchester Project, item 10 on the agenda. - Mayor Ristow stated she attended Campbell and Saratoga’s State of the City events, the Veteran’s Memorial Foundation 9/11 Remembrance event, and the West Valley Service Provider’s Meeting; announced the Successful Aging Solutions & Community Consulting

PAGE 2 OF 9
SUBJECT: Draft Minutes of the Town Council Meeting of September 19, 2023 DATE: September 19, 2023
(SASCC, formerly Saratoga Area Senior Coordinating Council) Health Fair is scheduled for October 21; attended the Lion’s Club lunch and presented a proclamation for White Cane Days, the Kiwani’s Club 100th Anniversary event, Fiesta de Artes, and the Los Gatos Music and Arts Gala; met with a third grade class at Lexington school to discuss government; attended a Plant Based Advocates talk at the Library and the Town of Los Gatos Employee Health Fair.

Manager Matters
- Announced Screen on the Green will be held on Friday, September 22 at the Civic Center Lawn with activities beginning at 6:30 p.m.
- Announced the Housing Element Advisory Board will meet on September 28 to discuss the next revision of the Housing Element.

CONSENT ITEMS (TO BE ACTED UPON BY A SINGLE MOTION)

1. Approve Minutes of the September 5, 2023 Town Council Meeting.

2. Receive the Monthly Financial and Investment Report for July 2023.

3. Adopt a Resolution Acknowledging the Completion of Public Right-of-Way Improvements by Betchart Union Avenue Development LLC for the Subdivision Located at 15975 Union Avenue and Authorizing the Town Manager to Execute and Record a Notice of Completion and Certificate of Acceptance. RESOLUTION 2023-048

4. Authorize the Town Manager to Execute a First Amendment to the Memorandum of Agreement with the Santa Clara County Recycling and Waste Reduction Technical Advisory Committee to Allow Satellite and Auxiliary Teleconferencing Attendance in Meetings.

5. Actions Related to Police Vehicles:
a. Authorize the Town Manager to Execute a Purchase Order with Lehr to Fit Up Three Police Vehicles in an Amount not to Exceed $66,615; and b. Authorize an Expenditure Budget Adjustment in and Amount of $66,615 from the Available Equipment Replacement Fund.

6. Authorize the Town Manager to Execute a Third Amendment to a Special Services Agreement with Liebert Cassidy Whitmore (LCW) to Increase Compensation in the Amount of $50,000 for a Total Contract Amount Not to Exceed $280,000.

7. Reschedule to October 17, 2023 the Consideration of the Adoption of a Resolution Modifying the Height Pole and Netting Policy for Additions and New Construction. The Proposed Modifications to Town Policy are Not Considered a Project Under the California Environmental Quality Act. Project Location: Town Wide. Applicant: Town of Los Gatos.

8. Adopt a Resolution for the California Public Employees’ Retirement System Retirement Plan to Waive the 180-Day Retiree Rehire Wait Period and to Appoint Paul Horvat as the Temporary Emergency Services Coordinator in the Town Manager’s Office. RESOLUTION 2023-049
Mayor Ristow opened public comment.

PAGE 3 OF 9
SUBJECT: Draft Minutes of the Town Council Meeting of September 19, 2023 DATE: September 19, 2023
No one spoke.

Mayor Ristow closed public comment.

MOTION: Motion by Vice Mayor Badame to approve all consent items. Seconded by Council Member Hudes.

VOTE: Motion passed unanimously.

VERBAL COMMUNICATIONS
Claire Wilson
- Commented on concerns with parking and requested six reserved parking spaces for the residents of 135 W. Main Street.

Theodore Chin
- Commented on concerns with parking, requested six reserved parking spaces for the residents of 135 W. Main Street, and spoke about his experience of carjacking.

Richard Kelso
- Commented on concerns with parking due to the reallocation of parking spaces for parklets and requested six reserved parking spaces for the residents of 135 W. Main Street.

Lynley Hogan
- Shared religious quotes and said a prayer.

Council asked questions of staff.

OTHER BUSINESS

9. Adopt an Amended Resolution for the California Public Employees’ Retirement System Retirement Plan to Waive the 180-Day Retiree Rehire Wait Period and to Appoint Sean Rose as the Temporary Capital Projects Manager in the Parks and Public Works Department.

RESOLUTION 2023-050
Katy Nomura, Assistant Town Manager, presented the staff report.

Mayor Ristow opened public comment.

No one spoke.

Mayor Ristow closed public comment.

Council discussed the item.

PAGE 4 OF 9
SUBJECT: Draft Minutes of the Town Council Meeting of September 19, 2023 DATE: September 19, 2023
MOTION: Motion by Vice Mayor Badame to adopt an amended resolution (Attachment 4 to the staff report) for the California Public Employees’ Retirement System Retirement Plan to waive the 180-day retiree rehire wait period and to appoint Sean Rose as the temporary Capital Projects Manager in the Parks and Public Works Department.

Seconded by Council Member Moore.

VOTE: Motion passed unanimously.

PUBLIC HEARINGS

10. Consider an Appeal of a Planning Commission Decision to Approve the Demolition of One Existing Office and Four Residential Buildings, Construction of an Assisted Living and Memory Care Facility, Variance from the Maximum Height and Lot Coverage of the Zone, Merger of Four Lots Into One, and Removal of Large Protected Trees on Property Zoned Office. Located at 15860 -15894 Winchester Boulevard and 17484 Shelburne Way. APNs 529-11-013, -038, -039, and -040. Architecture and Site Application S-21-008, Conditional Use Permit Application U-21-010, Variance Application V-21-003, Subdivision Application M22-008, and Mitigated Negative Declaration ND-22-001. An Initial Study and Mitigated Negative Declaration Have Been Prepared for This Project. Applicant/Property Owner:

Green Valley Corp. d.b.a. Swenson. Appellant: Eric Hulser. Project Planner: Jennifer Armer.

Jennifer Armer, Planning Manager, presented the staff report.

Council asked preliminary questions.

The appellant, Eric Hulser, provided opening comments.

The applicant, Jesse Bristow of Swenson Builders, provided opening comments.

Mayor Ristow opened public comment.

Nicole Ricci
- Commented on concerns regarding the square footage of the project and traffic.

Liz Lawler
- Commented in support of the appellant and stated concerns with the variances.

Maxim Zarzhetskiy
- Commented on concerns and stated opposition of granting the requested variances.

Joseph Gemigrani (Jim Mangani)
- Commented in support of the project.

PAGE 5 OF 9
SUBJECT: Draft Minutes of the Town Council Meeting of September 19, 2023 DATE: September 19, 2023
Bryan Mekechuk, Mayor of Monte Sereno
- Commented on a survey and stated the results did not support granting the requested variances.

Lee Quintana
- Commented on concerns with transparency, common understanding of terms, and below market rate housing requirements.

Tony Alarcon
- Requested the Town consider posting projects on Nextdoor and commented on concerns.

Georgina Van Horn
- Commented in opposition of granting the variances of height and lot coverage and stated other concerns.

Mayor Ristow closed public comment.

The applicant, Jesse Bristow, of Swenson Builders, provided closing comments.

The appellant, Eric Hulser, provided closing comments.

Mayor Ristow asked Council if they had any disclosure related to this item.

Council Member Hudes stated he visited the site.

Council Member Rennie stated he met with the applicant, met with Mr. Mekechuk, and visited the site.

Vice Mayor Badame stated she visited the site and met with the applicant.

Council Member Moore stated he met with developer, visited the site, and met with Mr.

Mekechuk.

Mayor Ristow stated she visited the site, met with applicant, and met with neighbors in that area.

Council discussed the item.

MOTION: Motion by Council Member Moore to deny the appeal of the Planning Commission decision to approve the demolition of one existing office and four residential buildings, construction of an assisted living and Memory Care Facility, variance from the maximum height and lot coverage of the zone, merger of four lots into one, and removal of large, protected trees on property Zoned Office. Seconded by Council Member Rennie.

VOTE: Motion passed 3-2. Council Member Hudes and Vice Mayor Badame voted no.

PAGE 6 OF 9
SUBJECT: Draft Minutes of the Town Council Meeting of September 19, 2023 DATE: September 19, 2023
Mayor Ristow called a recess at 9:55 p.m.

Mayor Ristow reconvened the meeting at 10:09 p.m.

OTHER BUSINESS

11. Provide Direction on the Pinehurst Community Garden (CIP No. 831-4610) and Lynn Avenue Pedestrian Path Design (CIP No. 832-4510).

Nicolle Burnham, Parks and Public Works Director, presented the staff report.

Opened public comment.

Dick Konrad
- Commented in support of the projects.

Kevin Arroyo
- Commented in support of the projects and requested native plants be incorporated into the garden design.

Tom Picraux
- Commented in support of the projects.

Closed public comment.

Council discussed the item and provided direction to staff.

12. Consider Adopting an Enabling Resolution to Establish an Equity Commission Entitled the Unity and Solidarity Commission and Direct its Recruitment with the Annual Fall Commission Recruitment. RESOLUTION 2023-051
Holly Young, Management Analyst, presented the staff report.

Opened public comment.

Jeff Suzuki
- Commented in support of adopting the proposed enabling resolution to establish an Equity Commission entitled the Unity and Solidarity Commission.

Ron Meyer
- Commented in opposition of adopting the proposed enabling resolution to establish an Equity Commission entitled the Unity and Solidarity Commission and expressed concerns.

PAGE 7 OF 9
SUBJECT: Draft Minutes of the Town Council Meeting of September 19, 2023 DATE: September 19, 2023
Richard Kananen
- Inquired about the reasons for forming a Commission, and requested Council defer their vote on this item to next month.

Varily Isaacs, JEDI Working Group
- Shared a personal experience and commented in support of adopting the proposed enabling resolution to establish an Equity Commission entitled the Unity and Solidarity Commission.

Dominic Broadhead, JEDI Working Group
- Commented in support of adopting the proposed enabling resolution to establish an Equity Commission entitled the Unity and Solidarity Commission.

Catherine Somers, JEDI Working Group
- Commented in support of adopting the proposed enabling resolution to establish an Equity Commission entitled the Unity and Solidarity Commission.

Susan Burnett
- Requested Council review the 2040 General Plan Racial, Social, and Environmental Justice Element implementation and compare it with the suggestions from ALFI and commented on the additional workload for staff.

Ali Miano, Los Gatos Anti-Racism Coalition
- Commented on racism and spoke in support of adopting the proposed enabling resolution to establish an Equity Commission entitled the Unity and Solidarity Commission.

Galit Lipsitz Goldenthal
- Shared a personal experience and commented in support of adopting the proposed enabling resolution to establish an Equity Commission entitled the Unity and Solidarity Commission.

Kylie Clark
- Commented in support of adopting the proposed enabling resolution to establish an Equity Commission entitled the Unity and Solidarity Commission.

Jake Wilde
- Commented in support of adopting the proposed enabling resolution to establish an Equity Commission entitled the Unity and Solidarity Commission.

Kinsey Lee, Los Gatos Anti-Racism Coalition
- Commented in support of adopting the proposed enabling resolution to establish an Equity Commission entitled the Unity and Solidarity Commission.

PAGE 8 OF 9
SUBJECT: Draft Minutes of the Town Council Meeting of September 19, 2023 DATE: September 19, 2023
Anne Roley
- Commented in support of adopting the proposed enabling resolution to establish an Equity Commission entitled the Unity and Solidarity Commission.

Closed public comment.

MOTION: Motion by Council Member Rennie to extend the meeting for 20 minutes. Seconded by Council Member Moore.

VOTE: Motion passed unanimously.

Council discussed the item.

MOTION: Motion by Council Member Moore to extend the meeting until 12:40 a.m.

Seconded by Council Member Hudes.

VOTE: Motion passed unanimously.

Council continued their discussion of the item.

MOTION: Motion by Mayor Ristow to extend the meeting for another 10 minutes. Seconded by Council Member Hudes.

VOTE: Motion passed unanimously.

MOTION: Motion by Council Member Moore to adopt an enabling resolution (Attachment 1 to the staff report) to establish an equity commission entitled the Diversity, Equity, and Inclusion Commission, direct its recruitment with the annual fall Commission recruitment, bring back a revised workplan once the Commission has had time to work through the workplan as an established Commission, come back to Council with associated costs, with an amendment to the wording in section 2 (a) (iv) to state “One Town of Los Gatos Faith Leader who leaders a congregation in Los Gatos;” and if there is trouble recruiting, the enabling resolution will come back for Council to look at the membership. AMENDMENT: to strike the General Plan Committee Member, strike one of the two business owners or employees who may or may not live in Los Gatos, and strike two of the five Los Gatos residents from the membership section of the resolution for a total Commission membership of eleven (11) members. Seconded by Mayor Ristow.

VOTE: Motion passed 4-1. Vice Mayor Badame voted no.

PAGE 9 OF 9
SUBJECT: Draft Minutes of the Town Council Meeting of September 19, 2023 DATE: September 19, 2023
Mayor Ristow stated items 13 and 14 will be moved to the next available meeting.

13. Receive the Report and Provide Direction for an Updated Traffic Impact Fee and a Proposed Vehicle Miles Traveled Impact Fee.

14. Discuss the Housing Element Work Plan.

ADJOURNMENT
The meeting adjourned at 12:52 a.m.

Respectfully Submitted:
_____________________________________
Jenna De Long, Deputy Town Clerk

PREPARED BY: Holly Young
Senior Management Analyst
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: 10/03/2023
ITEM NO: 3
DATE: September 22, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Approve Modifications to Council Policy 2-11 Commission Appointments, Residency and Attendance Requirements, and Establishing a Quorum to Accommodate the Exception to Residency Requirements for the Newly Established Diversity, Equity, and Inclusion Commission RECOMMENDATION:

Approve modifications to Council Policy 2-11 Commission Appointments, Residency and Attendance Requirements, and Establishing a Quorum to accommodate the exception to residency requirements for the newly established Diversity, Equity, and Inclusion Commission.

BACKGROUND:

On September 19, 2023, the Town Council voted to adopt an enabling resolution to establish a Diversity, Equity, and Inclusion Commission.

DISCUSSION:

Per the adopted enabling resolution approved by Council, the membership composition of the Diversity, Equity and Inclusion Commission is as follows:
i. Two (2) Youth Commissioners as voting members, whose term of office shall be for one (1) year with no limitations on reappointments, appointed by the Youth Commission;
ii. One (1) Arts and Culture Commissioner as a voting member, whose term of office shall be for one (1) year with no limitations on reappointments, appointed by the Arts and Culture Commission;

PAGE 2 OF 3
SUBJECT: Modifications to Council Policy 2-11 Commission Appointments, Residency and Attendance Requirements, and Establishing a Quorum
DATE: September 22, 2023
iii. One (1) Community Health and Senior Services Commissioner as a voting member, whose term of office shall be for one (1) year with no limitations on reappointments, appointed by the Community Health and Senior Services Commission; iv. One (1) Town of Los Gatos business owner and resident as a voting member, whose term of office shall be for three (3) years with a two- term limit, appointed by the Town Council;
v. One (1) Town of Los Gatos business owner or employee, who may or may not reside in Los Gatos as a voting member, whose term of office shall be for three (3) years with a two-term limit, appointed by the Town Council;
vi. One (1) Town of Los Gatos faith leader who leads a congregation in Los Gatos, who may or may not reside in Los Gatos, as a voting member, whose term of office shall be for three (3) years with a two-term limit, appointed by the Town Council; vii. One (1) Town of Los Gatos non-profit employee, who may or may not reside in Los Gatos as a voting member, whose term of office shall be for three (3) years with a two-term limit, appointed by the Town Council; and
viii. Three (3) Town of Los Gatos residents as voting members, whose term of office shall be for three (3) years with a two-term limit, appointed by the Town Council.

The existing Town Council Policy 2-11 Commission Appointments, Residency and Attendance Requirements, and Establishing a Quorum establishes a residency requirement within the incorporated municipal limits of the Town of Los Gatos for membership on all Town Boards, Commissions, and Committees with the exception of the Youth Commission.

In order to accommodate the membership composition of the Diversity, Equity, and Inclusion Commission, the Policy needs to be amended to provide an additional exception for this newly established Commission.

The proposed edits to the Policy are available in Attachment 1 to this report.

CONCLUSION:

Staff recommends that the Council approve the proposed modifications to Council Policy 2-11 Commission Appointments, Residency and Attendance Requirements, and Establishing a Quorum to accommodate the exception to residency requirements for the newly established Diversity, Equity, and Inclusion Commission.

COORDINATION:

This report was coordinated with the Town Manager’s Office, Clerk Department, and Town Attorney.

PAGE 3 OF 3
SUBJECT: Modifications to Council Policy 2-11 Commission Appointments, Residency and Attendance Requirements, and Establishing a Quorum
DATE: September 22, 2023
FISCAL IMPACT:

There is no associated fiscal impact.

ENVIRONMENTAL ASSESSMENT:

This is not a project defined under CEQA, and no further action is required.

Attachments:

1. Proposed redlined modifications to Council Policy 2-11 Commission Appointments, Residency and Attendance Requirements, and Establishing a Quorum

ATTACHMENT 1

PREPARED BY: Holly Young
Senior Management Analyst
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: 10/03/2023
ITEM NO: 3

DESK ITEM
DATE: October 3, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Approve Modifications to Council Policy 2-11 Commission Appointments, Residency and Attendance Requirements, and Establishing a Quorum to Accommodate the Exception to Residency Requirements for the Newly Established Diversity, Equity, and Inclusion Commission REMARKS:

Attachment 2 includes public comment received between 11:01 a.m., Monday, October 2, 2023, and 11:00 a.m., Tuesday, October 3, 2023.

Attachment previously received with the October 3, 2023 Staff Report:

1. Proposed redlined modifications to Council Policy 2-11 Commission Appointments, Residency and Attendance Requirements, and Establishing a Quorum Attachment received with this Desk Item:

2. Public Comment received between 11:01 a.m., Monday, October 2, 2023, and 11:00 a.m., Tuesday, October 3, 2023

From:

To:

Subject:

Date:

Linda Swenberg
Clerk
Consent Item 3 comments
Monday, October 2, 2023 1:45:14 PM
[EXTERNAL SENDER]
Please submit these written comments for Consent Item 3.

The new DEIC Commission should be made up of residents of the town. I am opposed to the exceptions to the Commission Appointments, Residency and Attendance Requirements made for the new Diversity, Equity, and Inclusion Commission. I am afraid that this exception will have unintended consequences. For example, it will allow outsiders to have an undue influence in policy-making decisions in the Town.

ATTACHMENT 2 Page 30
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Police Chief, 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: 10/03/2023
ITEM NO: 4
DATE: September 28, 2023
TO: Mayor and Town Council
FROM: Gabrielle Whelan, Town Attorney
SUBJECT: Introduce an Ordinance Titled “An Ordinance of the Town Council of the Town of Los Gatos Amending Section 18.60.020, “Permits for Retailers of Tobacco Products,” of Article VI, “Smoking Regulations,” of Chapter 18, “Offenses and Miscellaneous Provisions,” of the Town Code to Increase Fine Amounts and Amend the Definition of “Tobacco Products” to Align with the Santa Clara County Ordinance.”
RECOMMENDATION:

Introduce an Ordinance titled, “An Ordinance of the Town Council of the Town of Los Gatos amending Section 18.60.020, “Permits for Retailers of Tobacco Products,” of Article VI, “Smoking Regulations,” of Chapter 18, “Miscellaneous Provisions,” of the Town Code to increase fine amounts and amend the definition of “Tobacco Products” to align with the Santa Clara County Ordinance.”
BACKGROUND:

As its May 16, 2017 meeting, the Town Council adopted an Ordinance to regulate the tobacco retailers which is codified in Section 18.60.020 of the Los Gatos Town Code. The Town contracts with Santa Clara County to enforce Section 18.60.020. The County recently updated its Ordinance regulating tobacco retailers. In order to continue with County-assisted enforcement of the Town’s Ordinance, the Town needs to amend its Ordinance to conform with the updated County Ordinance.

DISCUSSION:

The existing Ordinance requires tobacco retailers to obtain permits, prohibits the sale of flavored and electronic cigarette products, prohibits the sale of tobacco to minors, and provides for periodic monitoring to detect sales to minors.

PAGE 2 OF 3
SUBJECT: Updating the Town’s Current Tobacco Retailing Ordinance DATE: September 28, 2023
DISCUSSION (continued):

The most important elements of the County’s up to date Tobacco Retailing Ordinance are to:
1) Increase the dollar amount of fines for violations of the Ordinance by a retailer with a permit from:
a. $100 to $1,000 for violation of first instance;
b. $200 to $2,500 for a violation previously committed within a 60-month period; and
c. $500 to $5,000 for a violation committed twice within a 60-month period 2) Increase the dollar amount of the fine for retailing tobacco products without a tobacco retailing permit from:
a. $100 to $2,500 for violation of first instance’
b. $200 to $5,000 for a violation previously committed within a 60-month period; and
c. $500 to $10,000 for a violation committed twice within a 60-month period; and 3) Include e-cigarettes in the definition of “Tobacco Products.” Staff presented the proposed changes to the Town’s Youth Commission and the Youth Commission recommended that the Town Council introduce the Ordinance.

CONCLUSION:

Staff recommends that the Town Council introduce the attached Ordinance to update Section

18.60.020 of the Town Code. After introduction, the Ordinance would return for adoption at the Town Council’s October 17, 2023 meeting and would take effect 30 days after adoption.

COORDINATION:

The Police Department, Town Attorney’s Office, Town Manager’s Office, and Santa Clara County coordinated this report.

FISCAL IMPACT:

This action does not affect the Town’s Budget and is required to continue the existing arrangement between the Town and the County for enforcement of the Ordinance provisions.

ENVIRONMENTAL ASSESSMENT:

This is not a project defined under CEQA, and no further action is required.

PAGE 3 OF 3
SUBJECT: Updating the Town’s Current Tobacco Retailing Ordinance DATE: September 28, 2023
Attachments:

1. Redline Town Code Section 18.60.020

2. Draft Ordinance

Sec. 18.60.020. Permits for retailers of tobacco products. (a)
Intent. This Section is adopted to:
(1) Ensure compliance with the business standards and practices of the Town; (2) Encourage responsible Fet-a-iH-A-g--Retailing of ffiW€€6-�£-t5Products; (3) Discourage violations of laws related to teea€€0-Tobacco �t-5Products, especially those that prohibit or discourage the sale or distribution of teiaa€€6--Tobacco �t-5-Products and electroni-E Electronic smoking devicesCigarette Products to persons under twenty-one {21); (4) Respond to a new wave of addiction to el-e€tf.eni-€-Electronic ciga-Fette-Cigarett�_Ji-FOGt+a&Products; (5) Reduce vulnerability to unexplained illnesses associated with e+ettf-eni-€-Electronic cigarette Cigarette i}FOffi:+€t&Products; and
(6) Protect the public health and welfare.

This &e-Ct-iB-f!-Section does not expand or reduce the degree to which the acts regulated by federal or state law are criminally proscribed or alter the penalties provided by such laws. (b) Definitions. For the purposes of this s-ect+enSection, the following definitions shall apply:
(1) Arm's length transaction means a sale in good faith and for valuable consideration that reflects the fair market value in the open market between two R-)-or more informed and willing parties, neither of which is under any compulsion to participate in the transaction. A sale between relatives, related companies or partners, or a sale for which a significant purpose is avoiding the effect of the violations of this ;i_section is not an 6i:trm's !,length Ilransaction. (2) Department means the County of Santa Clara's Department of Environmental Health and any agency or person designated by the Director of the Department of Environmental Health to enforce or administer the provisions of this Section.
(3) Desiqnee means the agency selected or designated by the Town to enforce or administer the provisions of this Section.
f�·H3-t-Q.e.5i§-l'l-e€-A'\€iffi5-t-he-agency
j9fffi'i&i-efl-5--0:/4hi
selected or-des+gnate€!-e�+ewn-¾-e nfo rce or-administer the s sect i en
{3-}(4) Distribute or distribution means the transfer, by any person other than a common carrier, of a -t,Iobacco �£reduct to another person for sale or personal consumption. f4}(5) Electronic smoking device Electronic Cigarette Products means any of the following products:
a. Any device or delivery system that can be used to deliver nicotine in aerosolized or vaporized form, including, but not limited to, an e-cigarette, e-cigar, e-pipe, vape pen, or e-hookah. b. Any component, part, or accessory of such a device or delivery system that is used during its operation.
c. Any flavored or unflavored liquid or substance containing nicotine, whether sold separately or sold in combination with any device or delivery system that could be used to deliver nicotine in aerosolized or vaporized form.
d. Any product for use in an electronic nicotine device or delivery system whether or not it contains nicotine or tobacco or is derived from nicotine or tobacco. e. Electronic cigarette Cigarette Pproducts shall not include any battery, battery charger, carrying case, or other accessory not used in the operation of the device if sold separately. Electronic Created: 2022-06-16 15:23:49 [EST]
(Supp. No. 89}

ATTACHMENT 1 Page 34
€-ig-aff:lt-t-e-Cigarette Pproducts shall not include any product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product or for other therapeutic purposes where that product is marketed and sold solely for such approved use. See 21 U.S.C. § 387(a). As used in this _$.subsection, nicotine does not include any food products as that term is defined pursuant to Section 6359 of the California Revenue and Taxation Code. 16) Hearing Officer shall mean the Gffice of thc-GEH¾Aty Hearing Officer for this Sect-+efl-efilY:hearing officer appointed by the Town or its Designee to hear appeals. So long as the Town's Designee is �-Fl:meffi..in
the Department, the Hearing Officer shall be the hearing officer appointed by the Department by accordance with County of Santa Clara Ordinance tEltl-fl-tV::Code ("County Ordinance Code") �es--Ssection A38-4�. Nv-e-#l-e-meaning set forth i-A Chapter 1,Af-tide t!-l,ef the Town Code.
(6) Impound means the legal control exercised by the 9em,-rtffieffi-Town or its Designee over the use, sale, disposal, or removal of any Tobacco Products.
�(7) Ownership means possession of a ten (-l-G}percent or greater interest in the stock, assets, or income of a business, other than a security interest for the repayment of debt. Notwithstanding any other definition in this Code, an owner means a person who possesses ownership. {6}(8} Permit means a valid permit issued by the TewR--eF-its designee Des-i-gA-e-eTown or its pesignecDepartmc-rtt to a person to act as a r-et-ai+efRetailer. (7)(9) Retailer means any person who sells or €H5-tfiffil-t€-5--distributes tiobacco p_l:l_roducts for any form of consideration, whether or not they possess a current Permit. Retailing shall mean the doing of any of these actions. This definition is without regard to the quantity of tiobacco pfroducts sold or distributed.
f&}(l0)_School means a public or private elementary, middle, junior high or high school. f9t(ll)_Tobacco fproduct means (unless specifically noted elsewhere):
a. Any product subject to subchapter IX [21 U.S.C. § 387 et seq. ("subchapter IX")) of the Federal Food, Drug, and Cosmetic Act (See 21 U.S.C. § 387a(b) (products subject to Subchapter IX); 21 C.F.R. §§ 1100.1-1100.3 (tobacco products subject to subchapter IX) and Electronic Cigarette Products]. Products subject to subchapter IX include, but are not limited to, cigarettes, cigarette tobacco, roll-your-own tobacco, smokeless tobacco, cigars, pipe tobacco, and waterpipe tobacco.,a-nd electronic cigarette products. Products that are not subject to subchapter IX include accessories of tobacco products, such as, but not limited to, ashtrays, spittoons, and conventional matches and lighters that solely provide an external heat source to initiate but not maintain combustion of a tobacco product.
(c) Requirements and prohibitions.
(1) Permit required. It shall be unlawful for any person to act as a retailer Retailer in the Town of Los Gatos without first obtaining and maintaining a_-E_permit pursuant to this _$.section for each location at which retailing Retailing occurs.
(2) Lawful business operation. It shall be a violation of this �section for any _Bfetailer to violate any local, state, or federal law applicable to Itobacco ff}roducts, or the fetailiA-g-Retailing of such Itobacco £woducts.
(3) Display of [:permit. Each ]:permit shall be prominently displayed in a publicly visible place at the location identified in the _l:l_permit.
(4) Notice of minimum age for purchase of [tobacco f'.products. Retailers shall post conspicuously, at each point of purchase, a notice stating that selling Itobacco £woducts to anyone under twenty-one (21) Created: 2022-06-16 15: 23 :49 ( EST]
(Supp. No. 89)

years of age is illegal and subject to penalties. Such notice shall be subject to the approval of the Town or its designeeDcs-igfree&e�Town or its Designee.
(S) Positive identification required. No _Bretailer shall sell or distribute a te-ha€€e-Tobacco Pt}roduct Gf eJ.e.€.tFGH-i€--5ff'.l-ek-i-fl-g--pfe€k:tc4 to a not her i n di vi d u a I ��i:--thlft.y+3-0t y-eai:s of age without first examining the individual's-i�K- identification to confirm that the i-H�individual is at least the minimum age required under s5-tate law to purchase and possess the Itobacco ):t}roduct.
(6) Minimum age for individuals selling Itobacco f:JJroducts. No individual who is younger than the minimum age established by state law for the purchase or possession of Itobacco £:>products shall engage in _f3_fetailing.
(7) False and misleading advertising prohibited. A !3.fetailer without a _!)>ermit:
a. Shall keep all Itobacco ff)roducts out of public view. b. Shall not display any advertisement relating to Itobacco _f:products that promotes the sale or distribution of such products from the .[Yetailer's location or that could lead a reasonable consumer to believe that Itobacco fproducts can be obtained at that location. (8) Limitation on storefront advertising. No more than fifteen (15) percent of the square footage of the windows and clear doors of physical storefront used for retailing Retailing Ttobacco ff.lroducts shall bear advertising or signs of any sort, and all advertising and signage shall be placed and maintained in a manner that ensures that law enforcement personnel have a clear and unobstructed view of the interior of the premises, including the area in which the cash registers are maintained, from the exterior public sidewalk or entrance to the premises. However, this latter requirement of this subsection (8h shall not apply to an establishment where there are no windows or clear doors, or where existing windows are �_±:located Q_!Jjy_at a height that precludes a view of the interior of the premises by an individual standing outside the premises. (9) Flavored [tobacco [:products.
a. No !3.fetailer shall sell a riobacco ff}roduct containing, as a constituent or additive, an artificial or natural flavor or aroma (other than tobacco) or an herb or spice, including but not limited to strawberry, grape, orange, clove, cinnamon, pineapple, vanilla, coconut, licorice, cocoa, chocolate, cherry, mint, menthol, or coffee, that is a characterizing flavor or aroma of the Itoba�co ):f}roduct, smoke or vapor produced by the Itobacco fproduct. b. A Itobacco fi,roduct shall be subject to a rebuttable presumption that the product is prohibited by paragraph (a) of this .s_s-ubsection if:
(i) The product's manufacturer or any other person associated with the manufacture or sale of Itobacco P.i,roducts makes or disseminates public statements or claims to the effect that the product has or produces a characterizing flavor or aroma, other than tobacco; or (ii) The product's label, labeling, or packaging includes a statement or claim including any text and/or images used to communicate information that the product has or produces a characterizing flavor or aroma other than tobacco.
(10) Vending machines prohibited. No Itobacco fi,roduct shall be sold or distributed to the public from a vending machine or appliance, or any other coin or token operated mechanical device designed or used for vending purposes, including, but not limited to, machines or devices that use remote control locking mechanisms.

Created: 2022-06-16 15:23:49 [EST]
(Supp. No. 89}

(11) Prohibition on s�ale or dQistribution of [tobacco f.ftroducts to individualspersom under twenty-one (21) years. No retailer shall sell or distribute any Il:obacco £:product to any individual who is under twentyone (21) years of age. (12) Prohibition on s�ale or 6'Qistribution of .f_electronic r;_dgarette f.ftroducts. No person, whether or not issued a Permit. shall sSell or dDistribute Electronic Cigarette Products. retailer that is issued a new permit after December 19, 2019, shall sell or distribute electroni€-€-i-ga-rette products after permit issuance. No retailer that receives a permit renewal after December 19, 2019, shall sell or distribute electronic cigarette products after permit renewal. Regardless of the date of permit issuance-ef renewal, no retailer shall sell or distribute electronic cigarette-products after June 30, 2020. (d) Eligibility requirements for a pe-i=mi-Wermit.
(1) No _!:'_permit may be issued to authorize B.retailing at or from other than a fixed location. For example, r-eta+Ung-Retailing by persons on foot or from vehicles is prohibited. (2) No _!:'_permit may be issued to authorize retailiRg-Retailing at a temporary or recurring temporary event.

For example, .Bretailing at flea markets and farmers' markets is prohibited. (3) No £:'permit may be issued to authorize flretailing at any location where the profession of pharmacy is practiced by a pharmacist licensed by the State in accordance with the Business and Professions Code and where prescription drugs are offered for sale.
(4) No P.rermit may be issued to authorize B_retailing at any location within one thousand (1,000) feet of a �school, as measured by a straight line between any point along the property line of any parcel on which a �school is located and any point along the perimeter of the applicant's proposed business location; provided, however, that the prohibition contained in this subsection (d)(4) shall not apply to the following:
a. Any B_retailer of Itobacco P._products operating lawfully on January 1, 2018 (the effective date of the predecessor Ordinance Code); and
b. Any B.retailer of �-fig-0€-vJ.€.esElectronic Cigarette Products operating lawfully on January 1, 2018 (effective date of predecessor QGrdinanceted-e), however, any such Bretailer is subject to the prohibition on the sale and distribution of �electronic _c;;cigarette fproducts established in subsection (c)(12) of this section; and
c. Any lawfully operating B_fetailer of ffibac-€&-Tobacco Pproducts that would otherwise become ineligible to receive or renew a £:permit due to the creation or relocation of a �school. (5) No frJermit may be issued to authorizC-fB_etailing at a location which is within five hundred (500) feet of a location occupied by another Bretailer, as measured by a straight line between any point along the 1¥�-0-R--which a Bretailer is locatedperimeter of an existing Retailer's business location and any point along the perimeter of the £'..permit applicant's proposed business location, provided, however, that the prohibition contained in this �subsection (d)(5) shall not apply to:
a. Any B.retailer of Itobacco f.J:7roducts operating lawfully on January 1, 2018 (effective date of predecessor QGrdinance-Ged-e); and
b. Any IYetailers of Electronic Cigarette Products€+€-Ct� operating lawfully on January 1, 2018 (effective date of predecessor QGrdinance-(-Od-e); however, any such B.retailer is subject to the prohibition on the sale and distribution of _!;_-electronic rcigarette fJ:7roducts established in in �subsection (c)(12) of this �section. (6) Any exemption granted to a Bretailer pursuant to subsection (4) and (5) shall cease to apply upon the earlier of the following to occur:
a. The Bretailer fails to timely renew the ppermit pursuant to this �5ection.

Created: 2022-06-16 15:23:49 [EST]
(Supp. No. 89)

b. A new person obtains Qownership in the business.
(e) Application procedure.
(1) It is the responsibility of each B.fetailer to be informed of all laws applicable to-FB.etailing, including those laws affecting the issuance of a f13ermit. No _flr-etailer may rely on the issuance of a £permit as a determination by the I.town that the !3.fetailer has complied with all laws applicable to-+!3.etailing. A _f:Jc}ermit issued contrary to this )section, contrary to any other law, or on the basis of false or misleading information supplied by a Bretailer shall be revoked pursuant to this �section. (2) All fpermit applications shall be submitted on a form supplied by the +owfH3-f-i.t.s-� Town or its _Qesjg_nee,..to implement this �section.
(3) A permitted B.fetailer shall inform the Town or its designee Town or its Designee in writing of any change in the information submitted on an application for a £permit within fourteen (14) calendar days of a change.
(4) All information specified in an application pursuant to this ?,Section shall be subject to disclosure under the California Public Records Act (Government Code Section 6250 et seq.) or any other applicable law, subject to the laws'a-AV exemptions.
(f) /.55+!-€fA€e-efpf_ermit issuance, denial, and revocation. (1) Upon the receipt of a complete application for a fpermit, the application fee, and the annual f13ermit fee, the Towf.H:lr its designee-Town or its Designee shall issue a £permit unless substantial evidence demonstrates that one flt-or more of the following bases for denial exists:
a. The information presented in the application is inaccurate or false. b. The application seeks authorization for r_Retailing at a location for which this �section prohibits issuance of a _f:f}ermit.
c. The application seeks authorization for r.B_etailing by a person to whom this �section prohibits issuance of a ):permit.
d. The application seeks authorization for a Retailer whose Permit has previously been revoked or who has otherwise violated any provision of this Chapter Section within the last 60 months. €he. The application seeks authorization for r!3.etailing that is prohibited pursuant to this ?,Section (e.g., mobile vending, I;_electronic �€igarette fJ;,roducts) or that is unlawful pursuant to any other law.
f. The application seeks authorization for Retailing by a Retailer who has failed to pay any fees, penalties, or reinspection fees required by this Section. (2) A ):permit shall be revoked if the !-1:-ewflf}ppartmentTown or its Designe� finds that_;:
@J one-fl-} or more of the bases for denial of a £permit under this �section existed at the time application was made or at any time before the fJ;,ermit was issued. Such a revocation shall be without prejudice to the filing of a new Permit application.j--Of
{3) A pPermit shall be permanently revoked if
�4wo-+�1=1he
jS€f-i-ofhas
Retailer has committed three or more-violations of this Section withing 6G--ffifmth specified in paragraphlDl)14) of this Section .. Such a revocation shall be without prejudice to tt.e filing of a new permit application.
(g) Permit term, conditions, renewal, and expiration.
(1) Term of fpermit. The term of a f}_f:ermit is one-{-1-} year. A [::permit is invalid upon expiration.

Created: 2022-06-16 15:23:49 [EST)
(Supp. No. 89}

•
(2) Conditions of Permit. As conditions of Permit issuance and retention, Retailer shall:
a. Allow €Compliance ilnspections as described in Subsection {kl and expressly consent to inspection of all areas and records of a Retailer's business required to effectuate the purpose of this Section, including unlocking and allowing access to any area of the Retailer's business requested by any individual authorized to monitor and facilitate compliance with this Section.
b. Comply with any order of the DepartrneA-t-Town or its Designee to impound any product not authorized to be sold by this Section and cooperate with any �-seizure of any product. subject to appeal of those actions.
c. Failure to comply with these Permit conditions may result in Permit suspension or revocation as described in Subsection {ml.
f21(3) Renewal of fpermit. The +BWA-Of-f&€1esigneeTown or its Designee shall renew a-lfa+i.d £f)ermit upon timely payment of the annual permit fee provided that the Retailer complies with this Section�.

The '.f-ElWfHtf-it-5-4€-5-igA-ee-Town or its Designee may, in its discretion, agree to renew any expired £permit within the three-month period following expiration if the J3.fetailer pays the annual permit fee and applicable late charges. For every calendar month, or fraction thereof, that a J3.fetailer fails to renew an expired £rermit, a late charge equal to twenty {.;;y}}percent of the annual £permit fee shall be assessed. A £permit renewed within three f--3-t calendar months of expiration shall be treated as if timely renewed.
{-3-}(4) Issuance of £'.permit after revocation or expiration offyermit. To apply for a new-re-taHe+ f13ermit more than three f3-t calendar months after expiration of a £permit or following revocation of a feta+lef £:permit that was wrongly issued, a .efetailer must submit a complete application for a� _Epermit, along with the application fee and annual P.permit fee. The +0WFl or its designee Town or its Designee shall issue a feta+le+-fpermit pursuant to the requirements of this ;,section. (h) Permits nontransferable.
(1) A_fpermit may not be transferred from one {.:.l:}person to another or from one-{-½ location to another.

Whenever a new person obtains OWR�Ownership in a business for which a £permit has been issued, a new £'.permit shall be required, but any exemption granted pursuant to subsection (d) shall cease to apply.
(2) Notwithstanding any other provision of this _$.section, prior violations of this ;,section at a location shall continue to be counted against a location and fpermit ineligibility and suspension periods shall continue to apply to a location unless:
a. One hundred f-lGG}-percent of the interest in the stock, assets, or income of the business, other than a security interest for the repayment of debt, has been transferred to one+lf or more new owners; and
b. The +e-w�nee DesigneeDeW:ftm-eHtTown or its Designee is provided with clear and convincing evidence, including an affidavit, that the business has been acquired in an {l,arm's L)ength Btiransaction.
(i) Permit conveys a limited, conditional privilege. Nothing in this ;,section shall be construed to grant any person obtaining and maintaining a fJ)ermit any status or right other than the limited, conditional privilege to act as a _8fetailer at the location in the Town identified on the face of the P.t,ermit. All E_f}ermits are issued subject to the Town's right to amend this ;3-section, and !}fetailers shall comply with all provisions of this -�section, as amended.
(
j) Fees. The +ewfl-ef-i.M-e&tgRee-Town or its Designee_shall not issue or renew a £'.permit prior togefore full payment of any applicable fees. The Town DepartmentCounty Board of Supervisors shall, from time to time, Created: 2022-06-16 15:23:49 [EST]
(Supp. No. 89)

establish by resolution the fees to issue or to renew a r�+e-i:-£'.permit, and, so long as the Department is the Town's Designee, the Town shall amend its fee schedule to reflect any changes to the County's schedule. The fees shall be calculated so as to recover the cost of administration and enforcement of this �section, including, for example, issuing a fpermit, administering the £:_permit program, €0-fl-du€t+Ftg-Bfetailer education, �anq routine _Bfetailer inspection and compliance,� documentation of violatiow.;, and prosecution of violators, but shall not exceed the cost of the regulatory program authorized by this �section. All fees and interest earned from such fees shall be used exclusively to fund administration and enforcement of this $.section.
(k) Compliance monitoring.
(1) Compliance with this 2section shall be monitored by the +oWR or its desigf,€€Town or its Designee. In Ge:wft-me-r1Hown
addition, any peace officer may enforce the penal provisions of this 5-e€t-i-efl�ction. The or its DesigneeTown Manager may designate any number of additional individuals to monitor and facilitate compliance with this _2section.
(2) The �g-Aee-Town or its Designee or other individuals designated to enforce the provisions of this 2section shall rne€-k-monitor each Rretailer at least once per twelve-month period to determine if the _Bfetailer is complying with all laws applicable to .Bretailing, other than those laws regulating underage access to Itobacco £'_products. Nothing in this paragraph shall create a right of action in any _Bretailer or other person against the Town, its designee its Designee, or tts--their agents. (3) Any Retailer found to be in violation of this Section shall pay all costs related to enforcement to ensure Retailer's compliance with this Section, including but not limited to, fees for reinspection to determine compliance after a violation, enforcement costs, litigation costs, and attorney fees in any administrative or civil matter in which the Town +own-e-r-i-t-s--designee or its Designee prevails. (I) Prevention of underage sales.
(1) The +ewn,Town or its DesigneeGettflty-designees, +Acluding Tow-A--OF-its designee _shall rne€-k-monitor each 1:.B_etailer at least twice per 12-month period to determine whether the .B_fetailer is conducting business in a manner that complies with laws regulating youth access to Itobacco fproducts. Nothing in this paragraph shall create a right of action in any .Bretailer or other person against the Town,_i_� Q_g�g_o_ee, its designee, or thel!:+ts agents.
(2) The +GWl'H}F--� Town or its Designee shall not enforce any law establishing a minimum age for Itobacco £>.product purchases against an individual who otherwise might be in violation of such law because of the individual's age ("yemh--Youth DElecoy") if the potential violation occurs when:
a. The y.Y_outh dQ_ecoy is participating in a compliance check supervised by a peace officer or a code enforcement official of the Town;
b. The y.Y_outh eQ_ecoy is acting as an agent of the Town to monitor compliance with this _$.section; or c. The y_'(_outh dQ_ecoy is participating in a compliance check funded in part, either directly or indirectly through subcontracting, by thej:ounty..:r-ew-A, or the California Department of Public Health.
(m) Penalties for a violation by a retailer with a permit. (1) Administrative fine. In addition to any other penalty authorized by law, a Retailer shall pay a fine if the Retailer, or the Retailer's agents or employees, violates any of the requirements, conditions, or pro h i bit ions of this Se ct ion . aH-J d mi n is t rat i ve--:f+ne-5-h-a 11 be i m posed a n d a �t-5�€€1-i--f a-ny court of competent jurisdictiOA determines, or the +ewn or its designee finds--ea5e€1-tJH--a preponderanrn-e-f-�e retailer, or any of-the retailer's agents or employees, has Vffilated any of the requirements, conditions, or prohibitions of this section, has pied guilty, "no €0+1-t-est '' or its e q ui-v�t-t o s u ch a vi o-1-aooA,ef-has-a�i-o-l-a-t+efl-:

Created: 2022-06-16 15:23:49 (EST)
(Supp. No. 89)

(2) Amount of fine. The amount of the administrative fine for each 5-tf€fl--violation of this Section shall be as follow!;:
a. A fine not to exceed one thousand tlli-rH:l-f€€1-dollars ($1,000.00) for each violation identified during the first instance in which the Retailer has committed a violation or violations; i3-fif&t b.
� a
\%��
A fine not to exceed two thousand five hundred dollars ($2,500.00) for each violation identified subsequent instance if the Retailer has committed a previous violation or violations within a 60-month period; and �ion within a twelve month period; and C. A fine not to exceed five thousand ffi+REl-f-e€1 dollars ($5,000.00) for each violation identified during a subsequent instance after the Retailer twice committed a previous violation or violations within a 60-month period. a£1ditional violation within a twelve month period. (3) Time period for fpermit suspension. In addition to any other penalty authorized by law, the f}ef}af-tcmeRt-Town or its Designee may suspend a Permit if the Town or its Designee Ge-partment demonstrates that the Retailer or any of the Retailer's agents or employees has violated any of the requirements, conditions, or prohibitions of this Section. The period of the suspension shall be as follows:
a. A suspension not to exceed 30 calendar days for an initial violation. For a first violation of this 5€Ction at a location within any sixty month-peooa,the permit shall tl€-S-l¾spended for up to thtf-ty {30) calendar day&:-
b. A suspension not to exceed 180 calendar days if a Retailer commits a violation or violations during two instances within a 60-month period. For a seco�his section at a locatioo Wlth»+JA-lr;-Htt-y..�� pcmo4, the porm1t ;nan ba sur;pnnd:jd for u� to nirrntv {90) coicmdar days. c.

Des±gn-ee--Town
When a Permit is
or
suspended
its Designee
based
Department
on a violation
shall post
of this
a placard
Section,
at
the�
the physical location used for
Retailing Tobacco Products to notify the general public of the suspension. The placard shall be:

For each additional violation of this section at a location within any sixty month period, the retailer peFmit shall be suspended for up to one (1) year. {A) Posted in the front window of the storefront used for f-RRetailing Tobacco Peroducts within five feet of the front door; or
(B) Posted in a display case mounted on the outside front wall of the physical location used for f-RRetailing Tobacco Products within five feet of the front door; or (C) Posted in a location approved by the Town or its DesigneeDirector to ensure proper notice to the general public and to patrons of the physical location used for f-RRetailing Tobacco Products.
(D) Once attached to a building or structure, a placard is not to be removed, altered, or covered until done so by an authorized representative of the Town or its OdesigneeTown or its DesignceDepartmem, or upon written notification from the Town or its Wesj-gAeyTown or its Designee.Q.ewftffiffit:. (4) Waiver or reduction of fines and penalties for first violation. The �-designeeTown or its Designeef?:e:p-a-ftmeffi may, ).Q tlteifits sole discretion, waive or reduce any fines and penalties for a £Yetailer's first violation of this Sect[Q..o.&e€t+oo any requirement, condition or prohibition of this seGtief:t.; other than a violation of a law regulating youth access to tobacco products, if the _[ifetailer admits the violation in writing and agrees to forego a hearing on the allegations. Regardless of the +awn's or its designee's waiver of penalties for a first violation, the violation will be considered in determining the fines and suspension periods or revocation for any future violation. penalties for any future V-tffia-t-kffi, Created: 2022-06-16 15:23:49 [EST]
(Supp. No. 89)

This Subsection shall not apply to any violation involving a law regulating youth access to Tobacco Products or Electronic Cigarette ProStftt.5.
(5) Corrections period. The Town __ or its-0f-ft5de5fg-fl-€-e-DesJg_i:i��-shall have discretion to allow a ]3retailer a period of time to correct any violation of any requirement, condition or prohibition of this Secj_ion5-ettioo, other than a violation of a law regulating youth access to Itobacco fproducts--ef €-fe€tf.e.Aktrgarette Products. If the Town or its ElesigA-ee-Designee exercises its discretion to provide a flretailer's corrections period and a flretailer's violation is corrected within the time allowed for correction, no penalty shall be imposed under this section. fet-Wfi#-eR--r+etice of penalties. Whenever ;:i.-f-ine is issued-a�J:}ef-ffiit is suspended based oo-a violation of this section, the Town or its de-s-�--prn11ide the retailer \Vritten notiE:-€--Of--t-h� violation and the fine and suspension, including •.vhen the suspension shall take effect. (6) Written notice of penalties. Whenever a fine is issued and/or Permit is suspended or revoked based on a violation of this Section, the Town or its DesigneeDepartmen-t shall provide the Retailer written notice of the violation and the fine and suspension or revocation, including when the suspension or revocation shall take effect.
iZ.L A-eppeals. Any penalties imposed under this Section may be appealed pursuant to Subsection (o) of this Section.

UP) A timely appeal shall stay enforcement of the appealed penalties until the final administrative decision of the +ovm or its designee DesigReeTown or its DesigneeG-e:@tlff'l€-fH is issued. (n) Penalties for B_Fetailing without a pe-Fmi-t:Permit. (1) Administrative fine. In addition to any other penalty authorized by law, a Retailer shall pay a fine if the Tevm or its designee DesigneeTown or its DesigneeG-e:@tlff'l€-fH demonstrates that the Retailer has engaged in Retailing at a location without a valid retailer permit, an administrative fine and an ineligibility period for application or issuance of a pe-r-mit shall be imposed if a court of competent jurisdiction determines, or the Town or its designee finds based-0�onderance of evidence,� aft-Y--f}ef£0n has engaged in retailing at a location wi-tl=IWH valid permit, either directly or through the person's agents or employees.,--has-pled guilty, "no ce�;:ilent to such a violation, or has a-amitted to such a violation.
(2) Amount of fine. The amount of the administrative fine for each such violation of this Section shall be as follows:
a. A fine not to exceed two thousand five e-n-e hundred dollars ($-±2,500.00) for each violation identified during the first instance in which the Retailer has committed a violation or violations without a valid Permit; a first violation within a h\1elve month p� b. A fine not to exceed five thousand tw-0-fl-tf-11€ife€! dollars ($2:5,000.00) for each violation identified during a subsequent instance if the Retailer has committed a previous violation or violations within a 60-month period without a valid Permit; and a second violation within a tv,elve moffi-1:t peRod;and
c. A fine not to exceed ten thousand five hundred dollars ($S10,000.00) for each violation identified during a subsequent instance after the Retailer has twice committed a previous violation or violations within a 60-month period without a valid Permit. a€1-ditional violation within--a--t-w€-l-ve-­ month period.
(3) Time period for permit ineligibility.
a.
(Supp. No. 89}
For a first vio-1-a-:t�ocation within any si�-iod, no new perm-i-1: f.9J:
an initial violation of this Section without a valid Permit, no new Permit may be issued tof-or the Created: 2022-06-16 15:23:49 [EST]

person or t�Retailer or the location (unless ownership Ownership of the business at the location has been transferred in an afnK-Arm's Uength Itransaction) until thirty {30) calendar days have passed from the date of the violation.
b. For a second violation of this section at a location If a Retailer commits a violation or violations during two instances within any sixty-month period without a valid permit. no new ff)ermit may be issued for the Retailer or the location�n or the lo� (unless Qownership of the business at the location has been transferred in an 6arm's ]Jength Itransaction) until ninety (90) calendar days---4a-v-e one yea-s-y_ear_has passed from the date of the _second th€ violation. c. For each additional violation of this section at a location 'Nithin anv sixty month p-cFiod, no new permit may be issued for the person or If a Retailer commits a violation or violations during three instances within a 60-2-4-month period, without a valid Permit, the Retailer and the location (unless �Ownership of the business at the location has been transferred in an �arm's _blength Itransaction) 1:1-A-t#-B-fle-{�om the date of the violation-, shall be permanently ineligible for a Permit.
(4) Waiver or reduction of fines and penalties for first violation. The +own or its designee Town or its Designee may, in itsi-t& sole discretion, waive or reduce any fines and penalties for a .!3.1:etailer's first �roducts,
violation of this �section,t1nless the violatiOR-also involves a violation of a law regul-ati+lg youth access if the .!3.fetailer admits the violation in writing and agrees to forego a hearing on the allegations. Regardless of �--it5-de&igHee+waiver of fines or penalties for a first violation, the violation will be considered in determining �lties for any future violation. the fines and suspension periods or revocation for any future violation. This Subsection shall not apply to �.
any violation involving a law regulating youth access to Tobacco Products�l-e€tfefti€...fi.gaf€-tte (5) Written notice of penalties. Whenever a fine is issued and/or a f}effl'ltt-Permit is suspended pursuant to this �section, the department the Town or its �Designee shall provide the .!3.retailer written notice of the fine and suspension, including when the suspension shall take effect. (6) Appeals. Any penalties imposed under this �section may be appealed pursuant to tJ:i-e-app-ea-1-s-&Section t5--9flge+1-�fl€-fi.n.al
{Ql_ be 19 wf5--5&ti-oo. A-ti-meJ.y-a-p.p-eakJ:ial.k.tay-em-0-F�t-fle-a.J3J9€d+e€J.-.f) en a It i es w h i I e the a pp ea-I administrative decision of the Count-y--+5--i-55tl€€h
(o) Appeals.
(1) Any fl
retailer served with a written notice of f3€-A-ctl�violation may request an administrative hearing to appeal the existence of the violation, the amount of the fine, an-elfer the length of 2th€ suspension, a revocation of a Permit, or the sustained impoundment and/or seizure of Tobacco Products by returning a completed hearing request form to the Town or its designeeDepartmentOffice of the Coo-AW-Hearing Officer within ten flG1-days from the date of the written notice of penalties. (2) The B_retailer shall include the following in or with the hearing request form:
a. A statement indicating the reason the _Bretailer contests the written notice of penalties; b. Any evidence the .!3.fetailer wants the Hearing Officer to consider; c. An advance deposit of the amount of any fine challenged; and d. The address of the B_retailer and, if available, an email address that can be used for contact and correspondence by the TewFH3r its designeeOffi.ce of the CoLm:W:Hearing Officer, The _Bretailer may request service of notice by mail.

Created; 2022-06-16 15:23:49 [EST]
(Supp. No. 89)

(3) The hearing request form shall be deemed filed on the date received by the +ewft-Of--i..t.s designeeDep-aftmentOffice e-f--tne-Countv Hearing Officer� A timely appeal shall stay enforcement of the appealed penalties while the appeal is ongoing.
(4) After receiving a timely hearing request form, the Hearing Officer+�shall notify the Town or its Designee as soon as practicable and then shall schedule an administrative hearing. The Hearing Officer+own or designee _shall provide the _!:Yetailer at least ten f-1-0} calendar days' written notice of the date, time, and place of the administrative hearing and the name of the Hearing Officer who will conduct the hearing. The notice shall be given to the _fYetailer either by email, if requested, or by first class mail, postage prepaid.
(5) Between the time the _f:sr-etailer requests the administrative hearing and the time of the Hearing Officer's decision, the E_retailer, the Town or its DesigneeTown and its designee, and each of their representatives shall not engage in ex parte communications with the Hearing Officer Hearing Officer regarding the matters at issue in the hearing.
(6) The hearing shall be conducted by the Hearing Officer on the date, time, and place specified in the notice to the E_r-etailer. A !3.r-etailer's failure to appear at the hearing shall constitute an abandonment of the hearing request and a failure to exhaust administrative remedies as a precedent to judicially challenge the existence of the violation and the imposition of the fine and suspension. (7) At the hearing, the E_r-etailer and the Tov.m or its designee Town or its Designee shall have the opportunity to present evidence, including witnesses, relevant to the Hearing Officer's determination of the matter. Neither the provisions of the Administrative Procedure Act (Government Code Section 11500 et seq.) nor the formal rules of evidence in civil or criminal judicial proceedings shall apply to such hearing. The Hearing Officer may admit any evidence, including witnesses, relevant to the determination of the matter, except as otherwise provided in Subsection (p)(3) of this Section." (8) The written notice of penalties and any other reports prepared by or for the Town or its Designee+awn er-#5-€1-e&igAee-_concerning the violation shall be admissible and accepted by the Hearing Officer as prima facie evidence of the violation and the facts stated in those documents. The Hearing Officer may continue the hearing from time to time, in the Hearing Officer's sole discretion, to allow for its orderly completion of the hearing.
(9) After receiving the evidence submitted at the hearing, the Hearing Officer may further continue the hearing and request additional information from either the Town, its designee Town or its Designee or the r-etakFRetailer.
(10) After considering the evidence and testimony submitted, the Hearing Officer shall issue a written decision regarding the matters properly raised in the request for administrative hearing. The Hearing Officer's decision, shall:
a. Be based on a preponderance of the evidence.
b. Include a statement of the reasons for the decision. c. Be issued within twenty (20) calendar days of the close of the hearing. d. Be served on both the Br-etailer and the �es-i-gA-eeTown or its Designee. The decision shall be given to the B_retailer either by email, if requested, or by first class mail, postage prepaid. (11) Based on the Hearing Officer's decision, the +ewA-ef--it-s-designee Town or its Designee shall promptly refund to the Br-etailer any amount of the advance fine deposit the Towrl-ef-.tts designeeTown or its pesignee is not entitled to and shall provide the remainder to the Town or its Designee. (12) The Hearing Officer's written decision shall constitute the final administrative decision" of the Town. (p) Enforcement.

Created: 2022-06-16 15:23:49 (EST]
{Supp. No. 89)

(1) Any violation of this se-Et-i-efl..-Section is hereby declared to be a public nuisance. (2) Causing, permitting, aiding, abetting, or concealing a violation of any provision of this Se-Etiim-Section shall also constitute a violation of this �section.
(3) Whenever evidence of a violation of this �section is obtained in any part through the participation of an individual under the age of twenty-one� years old, such-+fl-€1-i-v.i-oo-at a person shall not be required over their objection to appear or give testimony in any civil or administrative process brought to enforce this �section and the alleged violation shall be adjudicated based upon the sufficiency and persuasiveness of the evidence presented.
(4) Violations of this �section may be remedied by a e-v+!-l_g@!_action brought by the Town or its DdesigneeTown or its Designee�. , including, but not limited-te,;:idministrative or judicial nuisance abatement proceedings, civil code enforcement proceedings, and suits for injunctive relief. j3-F0GU€t
For the purposes of the-8-'Ji-+-_remedies provided in this �s-ection, each day on which a producttf:l-9-3-CW is offered for sale in violation of this ;is-ection, and each individual product which is sold, or distributed, in violation of this Section,-e-ac�ich a Tobacco Product is offere<:l for sale in v-+e+at+Ofl-Of this Section, and each individual retail tob<lcco product that is-tlistributed, sold,-e+ a��titm-of this section, _shall constitute a separate violation of this ;isection. � Any person-found guilty of violating an-y--pfBvision of this section shall be deemed guilty of an infraction, punishable as provided by Californ+a--Gtwernment Code Section 25132. (6) The remedies provided by this section are cumulative and in adchlion to any other remedies available (5) lmpoundment.
at law or�
(A) Based upon inspection findings or other evidence, the �eeTown or its Designe_g may impound Tobacco Products that are suspected of being or found to be offered for sale or distribution in violation of this Section. The Town or its Designee may affix a label to the products that shall be removed only by the Town or its Designee following final written determination by the Town or its Designee as described below.
(Bl No impounded Tobacco Products shall be used, removed, disposed, or offered for sale unless the impoundment has been released. The+s- decision by the Town or its Designee may be appealed pursuant to the procedures set forth in Subsection (o).ifl-a.€w.r�Etie-A-. (C) Within 30 days of final determination whether impounded products are authorized for sale under this Section, the T9Wfl-ef�designeeTown or its Designee shall release the impounded materials or order that unauthorized, impounded product shall be destroyed and properly disposed of at the Retailer's expense after all internal appeals have been exhausted and the time in which to seek judicial review pursuant to Subsection (o) has expired. (6) Seizure. Tobacco Products offered for sale in violation of this Section are subject to seizure by the lewn Gf-tt-5-designeeTown or its Designee and shall be forfeited after the Retailer of the Tobacco Products seized is given reasonable notice and an opportunity to demonstrate that the Tobacco Products were not offered for sale in violation of this Section. This decision may be appealed in accordance with the procedure set forth this Section. Forfeited Tobacco Products shall be destroyed and properly disposed of at Retailer's expense after all internal appeals have been exhausted and after the time in which to seek judicial review has expired.
(7) Employees. All Retailers are responsible for the actions of their employees relating to compliance with this Section. The sale, offer to sell, or furnishing of any Tobacco Products by an employee shall be considered an act of the Retailer.

Created: 2022-06-16 15:23:49 [EST]
(Supp. No. 89}

(8) Remedies. The remedies provided by this Section are cumulative and in addition to any other remedies available at law or in equity.�
(q) No conflict with federal or state law. Nothing in this roap-tetc--Section shall be interpreted or applied so as to create any requirement, power, or duty that is preempted by, or in conflict with, federal or state law, rules, or regulations.
(r) Section applicable to Retailing only. Nothing in this Section shall be construed to penalize the purchase, use, or possession of a Tobacco Product by any person not engaged in the Rfetailing of such products. ( Ord. No. 2297 , § I, 11-19-19; Ord. No. 2320 , § Ill, 9-7-21) Editor's note(s)-Ord. No. 2297-, § I, adopted Nov. 19, 2019, repealed § 18.60.020 and enacted new provisions to read as herein set out. Former§ 18.60.020 pertained to permits for retailers of tobacco products and/or electronic smoking devices, and derived from Ord. No. 2259, § I, adopted May 16, 2017.

Created: 2022-06-16 15:23:49 [EST)
(Supp. No. 89}

ATTACHMENT 2

DRAFT ORDINANCE

AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS AMENDING SECTION 18.60.020, “PERMITS FOR RETAILERS OF TOBACCO PRODUCTS,” OF ARTICLE VI, “SMOKING REGULATIONS,’” OF “CHAPTER 18, “OFFENSES AND MISCELLANEOUS PROVISIONS,” OF THE TOWN CODE TO INCREASE FINE AMOUNTS AND AMEND THE DEFINITION OF “TOBACCO PRODUCTS” TO

ALIGN WITH THE SANTA CLARA COUNTY ORDINANCE
WHEREAS, the Town’s Smoking Regulations are codified at Sections 18.60.010 and following;
WHEREAS, Town Code Section 18.60.030 regulates retailers of tobacco products; WHEREAS, the Town contracts with the County of Santa Clara for enforcement of the tobacco retailer ordinance;
WHEREAS, the County has amended its tobacco retailer ordinance to increase fine amounts and amend the definition of “tobacco products” to include electronic cigarette products; and
WHEREAS, in order to continue its enforcement activities in the Town, the County requires that the Town’s ordinance be amended to align with the County’s ordinance; NOW, THEREFORE, BE IT ORDAINED by the Town Council of the Town of Los Gatos as follows:

SECTION I. Town Code Section 18.60.020, “Permits for Retailers of Tobacco Products,” is amended to read as follows:

Sec. 18.60.020. Permits for retailers of tobacco products. (a) Intent. This Section is adopted to:
(1) Ensure compliance with the business standards and practices of the Town; (2) Encourage responsible Retailing of Tobacco Products; (3) Discourage violations of laws related to Tobacco Products, especially those that prohibit or discourage the sale or distribution of Tobacco Products and Electronic Cigarette Devices to persons under twenty-one (21);
(4) Respond to a new wave of addiction to Electronic Cigarette Products; (5) Reduce vulnerability to unexplained illnesses associated with Electronic Cigarette Products; and
(6) Protect the public health and welfare.

ATTACHMENT 2

This Section does not expand or reduce the degree to which the acts regulated by federal or state law are criminally proscribed or alter the penalties provided by such laws. (b) Definitions. For the purposes of this Section, the following definitions shall apply:
(1) Arm's length transaction means a sale in good faith and for valuable consideration that reflects the fair market value in the open market between two or more informed and willing parties, neither of which is under any compulsion to participate in the transaction. A sale between relatives, related companies or partners, or a sale for which a significant purpose is avoiding the effect of the violations of this Section is not an Arm's Length Transaction.
(2) Designee means the agency selected or designated by the Town to enforce or administer the provisions of this section.
(3) Department means the County of Santa Clara’s Department of Environmental Health and any agency or person designated by the Director of the Department of Environmental Health to enforce or administer the provisions of this Section. (4) Distribute or distribution means the transfer, by any person other than a common carrier, of a Tobacco Product to another person for sale or personal consumption. (5) Electronic Cigarette Product means any of the following products:
a. Any device or delivery system that can be used to deliver nicotine in aerosolized or vaporized form, including, but not limited to, an e-cigarette, e-cigar, e-pipe, vape pen, or e-hookah.
b. Any component, part, or accessory of such a device or delivery system that is used during its operation.
c. Any flavored or unflavored liquid or substance containing nicotine, whether sold separately or sold in combination with any device or delivery system that could be used to deliver nicotine in aerosolized or vaporized form. d. Any product for use in an electronic nicotine device or delivery system whether or not it contains nicotine or tobacco or is derived from nicotine or tobacco. e. Electronic Cigarette Products shall not include any battery, battery charger, carrying case, or other accessory not used in the operation of the device if sold separately. Electronic Cigarette Products shall not include any product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product or for other therapeutic purposes where that product is marketed and sold solely for such approved use. See 21 U.S.C. § 387(a). As used in this Subsection, nicotine does not include any food products as that term is defined pursuant to Section 6359 of the California Revenue and Taxation Code. (6) Hearing Officer shall mean the hearing officer appointed by the Town or its Designee to hear appeals. So long as the Town’s Designee is in the Department, the hearing officer shall be the hearing officer appointed by the Department in accordance with County of Santa Clara ordinance code (“County ordinance code”) Section A38-4.

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(7) Impound means the legal control exercised by the Town or its Designee over the use, sale, disposal or removal of any Tobacco Products. (8) Ownership means possession of a ten percent or greater interest in the stock, assets, or income of a business, other than a security interest for the repayment of debt.

Notwithstanding any other definition in this Code, an owner means a person who possesses ownership.
(9) Permit means a valid permit issued by the Town or its Designee to a person to act as a Retailer.
(10) Retailer means any person who sells or distributes Tobacco Products for any form of consideration, whether or not they possess a current Permit. Retailing shall mean the doing of any of these actions. This definition is without regard to the quantity of Tobacco Products sold or distributed.
(11) School means a public or private elementary, middle, junior high or high school. (12) Tobacco Product means (unless specifically noted elsewhere):
a. Any product subject to subchapter IX [21 U.S.C. § 387 et seq. ("subchapter IX")) of the Federal Food, Drug, and Cosmetic Act (See 21 U.S.C. § 387a(b) (products subject to Subchapter IX); 21 C.F.R. §§ 1100.1—1100.3 (tobacco products subject to Subchapter IX) and Electronic Cigarette Products]. Products subject to Subchapter IX include, but are not limited to, cigarettes, cigarette tobacco, rollyour-own tobacco, smokeless tobacco, cigars, pipe tobacco, and waterpipe tobacco. Products that are not subject to Subchapter IX include accessories of tobacco products, such as, but not limited to, ashtrays, spittoons, and conventional matches and lighters that solely provide an external heat source to initiate but not maintain combustion of a tobacco product. (c) Requirements and prohibitions.
(1) Permit required. It shall be unlawful for any person to act as a Retailer in the Town of Los Gatos without first obtaining and maintaining a permit pursuant to this Section for each location at which Retailing occurs.
(2) Lawful business operation. It shall be a violation of this Section for any Retailer to violate any local, state, or federal law applicable to Tobacco Products, or the Retailing of such Tobacco Products.
(3) Display of Permit. Each Permit shall be prominently displayed in a publicly visible place at the location identified in the Permit.
(4) Notice of minimum age for purchase of Tobacco Products. Retailers shall post conspicuously, at each point of purchase, a notice stating that selling Tobacco Products to anyone under twenty-one (21) years of age is illegal and subject to penalties. Such notice shall be subject to the approval of the Town or its Designee. (5) Positive identification required. No Retailer shall sell or distribute a Tobacco Product to another individual without first examining the individual’s identification to confirm

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that the individual is at least the minimum age required under State law to purchase and possess the Tobacco Product.
(6) Minimum age for individuals selling Tobacco Products. No individual who is younger than the minimum age established by State law for the purchase or possession of Tobacco Products shall engage in Retailing.
(7) False and misleading advertising prohibited. A Retailer without a Permit:
a. Shall keep all Tobacco Products out of public view.
b. Shall not display any advertisement relating to Tobacco Products that promotes the sale or distribution of such products from the Retailer's location or that could lead a reasonable consumer to believe that Tobacco Products can be obtained at that location.
(8) Limitation on storefront advertising. No more than fifteen (15) percent of the square footage of the windows and clear doors of physical storefront used for Retailing Tobacco Products shall bear advertising or signs of any sort, and all advertising and signage shall be placed and maintained in a manner that ensures that law enforcement personnel have a clear and unobstructed view of the interior of the premises, including the area in which the cash registers are maintained, from the exterior public sidewalk or entrance to the premises. However, this latter requirement of this subsection (8) shall not apply to an establishment where there are no windows or clear doors, or where existing windows are located only at a height that precludes a view of the interior of the premises by an individual standing outside the premises.
(9) Flavored Tobacco Products.
a. No Retailer shall sell a Tobacco Product containing, as a constituent or additive, an artificial or natural flavor or aroma (other than tobacco) or an herb or spice, including but not limited to, strawberry, grape, orange, clove, cinnamon, pineapple, vanilla, coconut, licorice, cocoa, chocolate, cherry, mint, menthol, or coffee, that is a characterizing flavor or aroma of the Tobacco Product, smoke or vapor produced by the Tobacco Product.
b. A Tobacco Product shall be subject to a rebuttable presumption that the product is prohibited by paragraph (a) of this Subsection if:
(i) The product's manufacturer or any other person associated with the manufacture or sale of Tobacco Products makes or disseminates public statements or claims to the effect that the product has or produces a characterizing flavor or aroma, other than tobacco; or
(ii) The product's label, labeling, or packaging includes a statement or claim including any text and/or images used to communicate information that the product has or produces a characterizing flavor or aroma other than tobacco.

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(10) Vending machines prohibited. No Tobacco Product shall be sold or distributed to the public from a vending machine or appliance, or any other coin or token operated mechanical device designed or used for vending purposes, including, but not limited to, machines or devices that use remote control locking mechanisms. (11) Prohibition on Sale or Distribution of Tobacco Products to individuals under twentyone (21) years. No retailer shall sell or distribute any Tobacco Product to any individual who is under twenty-one (21) years of age.
(12) Prohibition on Sale or Distribution of Electronic Cigarette Products. No person, whether or not issued a Permit, shall Sell or Distribute Electronic Cigarette Products. (d) Eligibility requirements for a Permit.
(1) No Permit may be issued to authorize Retailing at or from other than a fixed location.

For example, Retailing by persons on foot or from vehicles is prohibited. (2) No Permit may be issued to authorize Retailing at a temporary or recurring temporary event. For example, Retailing at flea markets and farmers' markets is prohibited. (3) No Permit may be issued to authorize Retailing at any location where the profession of pharmacy is practiced by a pharmacist licensed by the State in accordance with the Business and Professions Code and where prescription drugs are offered for sale. (4) No Permit may be issued to authorize Retailing at any location within one thousand (1,000) feet of a School, as measured by a straight line between any point along the property line of any parcel on which a School is located and any point along the perimeter of the applicant's proposed business location; provided, however, that the prohibition contained in this subsection (d)(4) shall not apply to the following:
a. Any Retailer of Tobacco Products operating lawfully on January 1, 2018 (the effective date of the predecessor Ordinance Code); and
b. Any Retailer of Electronic Cigarette Products operating lawfully on January 1, 2018 (effective date of predecessor ordinance), however, any such Retailer is subject to the prohibition on the sale and distribution of Electronic Cigarette Products established in subsection (c)(12) of this section; and c. Any lawfully operating Retailer of Tobacco Products that would otherwise become ineligible to receive or renew a Permit due to the creation or relocation of a School.
(5) No Permit may be issued to authorize Retailing at a location which is within five hundred (500) feet of a location occupied by another Retailer, as measured by a straight line between any point along the perimeter of an existing Retailer’s business location and any point along the perimeter of the Permit applicant's proposed business location, provided, however, that the prohibition contained in this Subsection (d)(5) shall not apply to:
a. Any Retailer of Tobacco Products operating lawfully on January 1, 2018 (effective date of predecessor ordinance); and

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b. Any Retailers of Electronic Cigarette Products operating lawfully on January 1, 2018 (effective date of predecessor ordinance); however, any such Retailer is subject to the prohibition on the sale and distribution of Electronic Cigarette Products established in in Subsection (c)(12) of this Section. (6) Any exemption granted to a Retailer pursuant to subsection (4) and (5) shall cease to apply upon the earlier of the following to occur:
a. The Retailer fails to timely renew the Permit pursuant to this Section. b. A new person obtains Ownership in the business.
(e) Application procedure.
(1) It is the responsibility of each Retailer to be informed of all laws applicable to Retailing, including those laws affecting the issuance of a Permit. No Retailer may rely on the issuance of a Permit as a determination by the Town that the Retailer has complied with all laws applicable to Retailing. A Permit issued contrary to this Section, contrary to any other law, or on the basis of false or misleading information supplied by a Retailer shall be revoked pursuant to this Section. (2) All Permit applications shall be submitted on a form supplied by the Town or its Designee to implement this Section.
(3) A permitted Retailer shall inform the Town or its Designee in writing of any change in the information submitted on an application for a Permit within fourteen (14) calendar days of a change.
(4) All information specified in an application pursuant to this Section shall be subject to disclosure under the California Public Records Act (Government Code Section 6250 et seq.) or any other applicable law, subject to the laws’ exemptions. (f) Permit issuance, denial, and revocation.
(1) Upon the receipt of a complete application for a Permit, the application fee, and the annual Permit fee, the Department shall issue a Permit unless substantial evidence demonstrates that one or more of the following bases for denial exists:
a. The information presented in the application is inaccurate or false. b. The application seeks authorization for Retailing at a location for which this Section prohibits issuance of a Permit.
c. The application seeks authorization for Retailing by a person to whom this Section prohibits issuance of a Permit.
d. The application seeks authorization for a Retailer whose Permit has previously been revoked or who has otherwise violated any provision of this Section within the last 60 months.
e. The application seeks authorization for Retailing that is prohibited pursuant to this Section (e.g., mobile vending, Electronic Cigarette Products) or that is unlawful pursuant to any other law.

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f. The application seeks authorization for Retailing by a Retailer who has failed to pay any fees, penalties, or reinspection fees required by this Section. (2) A Permit shall be revoked if the Town or its Designee finds that one or more of the bases for denial of a Permit under this Section existed at the time application was made or at any time before the Permit was issued. Such a revocation shall be without prejudice to the filing of a new Permit application.
(3) A Permit shall be permanently revoked if the Retailer has committed violations as specified in paragraph m(4) of this Section.
(g) Permit term, conditions, renewal, and expiration.
(1) Term of Permit. The term of a Permit is one year. A Permit is invalid upon expiration. (2) Conditions of Permit. As conditions of Permit issuance and retention, Retailer shall:
a. Allow Compliance Inspections as described in Subsection (k) and expressly consent to inspection of all areas and records of a Retailer’s business required to effectuate the purpose of this Section, including unlocking and allowing access to any area of the Retailer’s business requested by any individual authorized to monitor and facilitate compliance with this Section. b. Comply with any order of the Town or its Designee to impound any product not authorized to be sold by this Section and cooperate with any Departmental seizure of any product, subject to appeal of those actions. c. Failure to comply with these Permit conditions may result in Permit suspension or revocation as described in Subsection (m). (3) Renewal of Permit. The Town or its Designee shall renew a Permit upon timely payment of the annual permit fee provided that the Retailer complies with this Section. The Town or its Designee may, in its discretion, agree to renew any expired Permit within the three-month period following expiration if the Retailer pays the annual permit fee and applicable late charges. For every calendar month, or fraction thereof, that a Retailer fails to renew an expired Permit, a late charge equal to twenty percent of the annual Permit fee shall be assessed. A Permit renewed within three calendar months of expiration shall be treated as if timely renewed. (4) Issuance of Permit after revocation or expiration of Permit. To apply for a new Permit more than three calendar months after expiration of a Permit or following revocation of a Permit that was wrongly issued, a Retailer must submit a complete application for a Permit, along with the application fee and annual Permit fee. The Town or its Designee shall issue a Permit pursuant to the requirements of this Section. (h) Permits nontransferable.
(1) A Permit may not be transferred from one person to another or from one location to another. Whenever a new person obtains Ownership in a business for which a Permit has been issued, a new Permit shall be required, but any exemption granted pursuant to subsection (d) shall cease to apply.

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(2) Notwithstanding any other provision of this Section, prior violations of this Section at a location shall continue to be counted against a location and Permit ineligibility and suspension periods shall continue to apply to a location unless:
a. One hundred percent of the interest in the stock, assets, or income of the business, other than a security interest for the repayment of debt, has been transferred to one or more new owners; and
b. The Town or its Designee is provided with clear and convincing evidence, including an affidavit, that the business has been acquired in an Arm's Length Transaction.
(i) Permit conveys a limited, conditional privilege. Nothing in this Section shall be construed to grant any person obtaining and maintaining a Permit any status or right other than the limited, conditional privilege to act as a Retailer at the location in the Town identified on the face of the Permit. All Permits are issued subject to the Town's right to amend this Section, and Retailers shall comply with all provisions of this Section, as amended. (j) Fees. The Town or its Designee shall not issue or renew a Permit before full payment of any applicable fees. The County Board of Supervisors shall, from time to time, establish by resolution the fees to issue or to renew a Permit, and so long the Department is the Town’s Designee, the Town shall amend its fee schedule to reflect any changes. The fees shall be calculated so as to recover the cost of administration of this Section, including, for example, issuing a Permit, administering the Permit program, Retailer education, and routine Retailer inspection and compliance, but shall not exceed the cost of the regulatory program authorized by this Section. All fees and interest earned from such fees shall be used exclusively to fund administration and enforcement of this Section. (k) Compliance monitoring.
(1) Compliance with this Section shall be monitored by the Town or its Designee. In addition, any peace officer may enforce the penal provisions of this Section. The Town or its Designee may designate any number of additional individuals to monitor and facilitate compliance with this Section.
(2) The Town or its Designee or other individuals designated to enforce the provisions of this Section shall monitor each Retailer at least once per twelve-month period to determine if the Retailer is complying with all laws applicable to Retailing, other than those laws regulating underage access to Tobacco Products. Nothing in this paragraph shall create a right of action in any Retailer or other person against the Town, the Town or its Designee, or their agents.
(3) Any Retailer found to be in violation of this Section shall pay all costs related to enforcement to ensure Retailer’s compliance with this Section, including but not limited to, fees for reinspection to determine compliance after a violation, enforcement costs, litigation costs, and attorney fees in any administrative or civil matter in which the Town or its Designee prevails.
(l) Prevention of underage sales.

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(1) The Town or its Designee, shall monitor each Retailer at least twice per 12-month period to determine whether the Retailer is conducting business in a manner that complies with laws regulating youth access to Tobacco Products. Nothing in this paragraph shall create a right of action in any Retailer or other person against the Town, the Town or its Designee or their agents.
(2) The Town or its Designee shall not enforce any law establishing a minimum age for Tobacco Product purchases against an individual who otherwise might be in violation of such law because of the individual's age ("Youth Decoy") if the potential violation occurs when:
a. The Youth Decoy is participating in a compliance check supervised by a peace officer or a code enforcement official of the Town;
b. The Youth Decoy is acting as an agent of the Town to monitor compliance with this Section; or
c. The Youth Decoy is participating in a compliance check funded in part, either directly or indirectly through subcontracting, by the County, or the California Department of Public Health.
(m) Penalties for a violation by a retailer with a permit. (1) Administrative fine. In addition to any other penalty authorized by law, a Retailer shall pay a fine if the Retailer, or the Retailer’s agents or employees, violates any of the requirements, conditions, or prohibitions of this Section. (2) Amount of fine. The amount of the administrative fine for each violation of this Section shall be as follows:
a. A fine not to exceed one thousand dollars ($1,000.00) for each violation identified during the first instance in which the Retailer has committed a violation or violations;
b. A fine not to exceed two thousand five hundred dollars ($2,500.00) for each violation identified during a subsequent instance if the Retailer has committed a previous violation or violations within a 60-month period; and c. A fine not to exceed five thousand dollars ($5,000.00) for each violation identified during a subsequent instance after the Retailer twice committed a previous violation or violations within a 60-month period. (3) Permit suspension. In addition to any other penalty authorized by law, the Town or its Designee may suspend a Permit if the Town or its Designee demonstrates that the Retailer or any of the Retailer’s agents or employees has violated any of the requirements, conditions, or prohibitions of this Section. The period of the suspension shall be as follows:
a. A suspension not to exceed 30 calendar days for an initial violation.

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b. A suspension not to exceed 180 calendar days if a Retailer commits a violation or violations during two instances within a 60-month period. c. When a Permit is suspended based on a violation of this Section, the Town or its Designee shall post a placard at the physical location used for Retailing Tobacco Products to notify the general public of the suspension. The placard shall be:
(A) Posted in the front window of the storefront used for Retailing Tobacco Products within five feet of the front door; or
(B) Posted in a display case mounted on the outside front wall of the physical location used for Retailing Tobacco Products within five feet of the front door; or
(C) Posted in a location approved by the Town or its Designee to ensure proper notice to the general public and to patrons of the physical location used for Retailing Tobacco Products.
(D) Once attached to a building or structure, a placard is not to be removed, altered, or covered until done so by Town or its Designee or upon written notification from the Town or its Designee. (4) Waiver or reduction of fines and penalties for first violation. The Town or its Designee may, in its sole discretion, waive or reduce any fines and penalties for a Retailer's first violation of this Section if the Retailer admits the violation in writing and agrees to forego a hearing on the allegations. Regardless of the Town's or its Designee's waiver of penalties for a first violation, the violation will be considered in determining the fines and suspension periods or revocation for any future violation. This Subsection shall not apply to any violation involving a law regulating youth access to Tobacco Products.
(5) Corrections period. The Town or its Designee shall have discretion to allow a Retailer a period of time to correct any violation of any requirement, condition or prohibition of this Section, other than a violation of a law regulating youth access to Tobacco Products. If the Town or its Designee exercises its discretion to provide a Retailer's corrections period and a Retailer's violation is corrected within the time allowed for correction, no penalty shall be imposed under this section. (6) Written notice of penalties. Whenever a fine is issued and/or Permit is suspended or revoked based on a violation of this Section, the Town or its Designee shall provide the Retailer written notice of the violation and the fine and suspension or revocation, including when the suspension or revocation shall take effect. (7) Appeals. Any penalties imposed under this Section may be appealed pursuant to Subsection (o) of this Section.
(8) A timely appeal shall stay enforcement of the appealed penalties until the final administrative decision of the Town or its Designee is issued. (n) Penalties for Retailing without a Permit.

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(1) Administrative fine. In addition to any other penalty authorized by law, a Retailer shall pay a fine if the Town or its Designee demonstrates that the Retailer has engaged in Retailing at a location without a valid retailer permit either directly or through the person's agents or employees.
(2) Amount of fine. The amount of the administrative fine for each such violation of this Section shall be as follows:
a. A fine not to exceed two thousand five hundred dollars ($2,500.00) for each violation identified during the first instance in which the Retailer has committed a violation or violations without a valid Permit;
b. A fine not to exceed five thousand dollars ($5,000.00) for each violation identified during a subsequent instance if the Retailer has committed a previous violation or violations within a 60-month period without a valid Permit; c. A fine not to exceed ten thousand dollars ($10,000.00) for each violation identified during a subsequent instance after the Retailer has twice committed a previous violation or violations within a 60-month period without a valid Permit. (3) Time period for permit ineligibility.
a. For an initial violation of this Section without a valid Permit, no new Permit may be issued to the Retailer or the location (unless Ownership of the business at the location has been transferred in an Arm's Length Transaction) until thirty (30) calendar days have passed from the date of the violation. b. If a Retailer commits a violation or violations during two instances within any sixty-month period without a valid permit, no new Permit may be issued for the Retailer or the location (unless Ownership of the business at the location has been transferred in an Arm's Length Transaction) until one year has passed from the date of the second violation.
c. If a Retailer commits a violation or violations during three instances within a 60- month period, without a valid Permit, the Retailer and the location (unless Ownership of the business at the location has been transferred in an Arm's Length Transaction) shall be permanently ineligible for a Permit. (4) Waiver or reduction of fines and penalties for first violation. The Town or its Designee may, in its sole discretion, waive or reduce any fines and penalties for a Retailer's first violation of this Section if the Retailer admits the violation in writing and agrees to forego a hearing on the allegations. Regardless of waiver of fines or penalties for a first violation, the violation will be considered in determining the fines and suspension periods or revocation for any future violation. This Subsection shall not apply to any violation involving a law regulating youth access to Tobacco Products. (5) Written notice of penalties. Whenever a fine is issued and/or a Permit is suspended pursuant to this Section, the Town or its Designee shall provide the Retailer written notice of the fine and suspension, including when the suspension shall take effect.

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(6) Appeals. Any penalties imposed under this Section may be appealed pursuant to Section (o) below.
(o) Appeals.
(1) Any Retailer served with a written notice of violation may request an administrative hearing to appeal the existence of the violation, the amount of the fine, the length of a suspension, a revocation of a Permit, or the sustained impoundment and/or seizure of Tobacco Products by returning a completed hearing request form to the Hearing Officer within ten days from the date of the written notice of penalties. (2) The Retailer shall include the following in or with the hearing request form:
a. A statement indicating the reason the Retailer contests the written notice of penalties;
b. Any evidence the Retailer wants the Hearing Officer to consider; c. An advance deposit of the amount of any fine challenged; and d. The address of the Retailer and, if available, an email address that can be used for contact and correspondence by the Hearing Officer. The Retailer may request service of notice by mail.
(3) The hearing request form shall be deemed filed on the date received by the Hearing Officer. A timely appeal shall stay enforcement of the appealed penalties while the appeal is ongoing.
(4) After receiving a timely hearing request form, the Hearing Officer shall notify the Department as soon as practicable and then shall schedule an administrative hearing.

The Hearing Officer shall provide the Retailer at least ten calendar days' written notice of the date, time, and place of the administrative hearing and the name of the Hearing Officer who will conduct the hearing. The notice shall be given to the Retailer either by email, if requested, or by first class mail, postage prepaid. (5) Between the time the Retailer requests the administrative hearing and the time of the Hearing Officer's decision, the Retailer, the Town or its Designee, and each of their representatives shall not engage in ex parte communications with the Hearing Officer regarding the matters at issue in the hearing.
(6) The hearing shall be conducted by the Hearing Officer on the date, time, and place specified in the notice to the Retailer. A Retailer's failure to appear at the hearing shall constitute an abandonment of the hearing request and a failure to exhaust administrative remedies as a precedent to judicially challenge the existence of the violation and the imposition of the fine and suspension. (7) At the hearing, the Retailer and the Town or its Designee shall have the opportunity to present evidence, including witnesses, relevant to the Hearing Officer's determination of the matter. Neither the provisions of the Administrative Procedure Act (Government Code Section 11500 et seq.) nor the formal rules of evidence in civil or criminal judicial proceedings shall apply to such hearing. The Hearing Officer may

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admit any evidence, including witnesses, relevant to the determination of the matter, except as otherwise provided in Subsection (p)(3) of this Section. (8) The written notice of penalties and any other reports prepared by or for the Town or its Designee concerning the violation shall be admissible and accepted by the Hearing Officer as prima facie evidence of the violation and the facts stated in those documents. The Hearing Officer may continue the hearing from time to time, in the Hearing Officer's sole discretion, to allow for its orderly completion of the hearing. (9) After receiving the evidence submitted at the hearing, the Hearing Officer may further continue the hearing and request additional information from either the Town or its Designee or the Retailer.
(10) After considering the evidence and testimony submitted, the Hearing Officer shall issue a written decision regarding the matters properly raised in the request for administrative hearing. The Hearing Officer's decision, shall:
a. Be based on a preponderance of the evidence.
b. Include a statement of the reasons for the decision. c. Be issued within twenty (20) calendar days of the close of the hearing. d. Be served on both the Retailer and the Town or its Designee. The decision shall be given to the Retailer either by email, if requested, or by first class mail, postage prepaid.
(11) Based on the Hearing Officer's decision, the Town or its Designee shall promptly refund to the Retailer any amount of the advance fine deposit the Town or its Designee is not entitled to and shall provide the remainder to the Town or its Designee.
(12) The Hearing Officer's written decision shall constitute the final administrative decision.
(p) Enforcement.
(1) Any violation of this Section is hereby declared to be a public nuisance. (2) Causing, permitting, aiding, abetting, or concealing a violation of any provision of this Section shall also constitute a violation of this Section. (3) Whenever evidence of a violation of this Section is obtained in any part through the participation of an individual under the age of twenty-one years old, such a person shall not be required over their objection to appear or give testimony in any civil or administrative process brought to enforce this Section and the alleged violation shall be adjudicated based upon the sufficiency and persuasiveness of the evidence presented.
(4) Violations of this Section may be remedied by a legal action brought by the Town or its Designee. For the purposes of the remedies provided in this Section, each day on which a product is offered for sale in violation of this Section and each individual

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product which is sold in violation of this Section, shall constitute a separate violation of this Section.
(5) Impoundment.
(A) Based upon inspection findings or other evidence, the Town or its Designee may impound Tobacco Products that are suspected of being or found to be offered for sale or distribution in violation of this Section. The Town or its Designee may affix a label to the products that shall be removed only by the Town or its Designee following final written determination by the Town or its Designee as described below.
(B) No impounded Tobacco Products shall be used, removed, disposed, or offered for sale unless the impoundment has been released. The decision by the Town or its Designee may be appealed pursuant to the procedures set forth in Subsection (o).
(C) Within 30 days of final determination whether impounded products are authorized for sale under this Section, the Town or its Designee shall release the impounded materials or order that unauthorized, impounded product shall be destroyed and properly disposed of at the Retailer’s expense after all internal appeals have been exhausted and the time in which to seek judicial review pursuant to Subsection (o) has expired.
(6) Seizure. Tobacco Products offered for sale in violation of this Section are subject to seizure by the Town or its Designee and shall be forfeited after the Retailer of the Tobacco Products seized is given reasonable notice and an opportunity to demonstrate that the Tobacco Products were not offered for sale in violation of this Section. This decision may be appealed in accordance with the procedure set forth this Section.

Forfeited Tobacco Products shall be destroyed and properly disposed of at Retailer’s expense after all internal appeals have been exhausted and after the time in which to seek judicial review has expired.
(7) Employees. All Retailers are responsible for the actions of their employees relating to compliance with this Section. The sale, offer to sell, or furnishing of any Tobacco Products by an employee shall be considered an act of the Retailer. (8) Remedies. The remedies provided by this Section are cumulative and in addition to any other remedies available at law or in equity.
(q) No conflict with federal or state law. Nothing in this Section shall be interpreted or applied so as to create any requirement, power, or duty that is preempted by, or in conflict with, federal or state law, rules, or regulations.
(r) Section applicable to Retailing only. Nothing in this Section shall be construed to penalize the purchase, use, or possession of a Tobacco Product by any person not engaged in the Retailing of such products.

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SECTION II. Severability.

In the event that a court of competent jurisdiction holds any Section, subsection, paragraph, sentence, clause, or phrase in this Ordinance unconstitutional, preempted, or otherwise invalid, the invalid portion shall be severed from this Section and shall not affect the validity of the remaining portions of this Section. The Town hereby declares that it would have adopted each Section, subsection, paragraph, sentence, clause, or phrase in this Section irrespective of the fact that any one or more Sections, subsections, paragraphs, sentences, clauses or phrases in this Section might be declared unconstitutional, preempted, or otherwise invalid.

SECTION III. Publication.

The Town Clerk shall cause this ordinance or a summary thereof to be published in accordance with Section 36933 of the California Government Code.

SECTION IV. CEQA.

Adopting this ordinance amending the Town’s tobacco retailer ordinance is not a project subject to CEQA because it can be seen with certainty that it will not impact the environment (CEQA Guidelines Section 15378).

SECTION V. Effective Date.

This Ordinance was introduced at a regular meeting of the Town Council of the Town of Los Gatos on the _________, 2023, and adopted by the following vote as an ordinance of the Town of Los Gatos at a regular meeting of the Town Council of the Town of Los Gatos on the _________, 2023. This ordinance takes effect 30 days after it is adopted.

COUNCIL MEMBERS:

AYES:

NAYS:

ABSENT:

ABSTAIN:

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SIGNED:

MAYOR OF THE TOWN OF LOS GATOS

LOS GATOS, CALIFORNIA
DATE: __________________
ATTEST:

TOWN CLERK OF THE TOWN OF LOS GATOS

LOS GATOS, CALIFORNIA
DATE: __________________

PREPARED BY: Jocelyn Shoopman and Erin Walters
Associate Planner and Associate Planner
Reviewed by: Town Manager, Community Development Director, Planning Manager, and Town Attorney
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6872 www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 08/23/2023
ITEM NO: 5
DATE: September 28, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Consider a Resolution to Amend the General Plan to Include a Description of the Housing Element Overlay Zone and Introduce an Ordinance Titled “An Ordinance of the Town Council of the Town of Los Gatos Amending Chapter 29, “Zoning Regulations,” of the Town Code to Replace the Affordable Housing Overlay Zone Division 5 of Article VIII, “Overlay Zones and Historic Preservation,” With the Housing Element Overlay Zone As Division 5 of Article VIII, “Overlay Zones and Historic Preservation.” An Environmental Impact Report (EIR) was Prepared and Certified for the 2040 General Plan Update on June 30, 2022, Which Included the Proposed General Plan Amendments. No Further Environmental Analysis is Required. Zoning Code Amendment Application Z-23-002 and General Plan Amendment Application GP-23-002.

Project Location: Town Wide. Applicant: Town of Los Gatos.

RECOMMENDATION:

Adopt a resolution to amend the General Plan to include a description of the Housing Element Overlay Zone and introduce an ordinance, titled “An Ordinance of the Town Council of the Town of Los Gatos amending Chapter 29, “Zoning Regulations,” of the Town Code to replace the Affordable Housing Overlay Zone Division 5 of Article VIII, “Overlay Zones And Historic Preservation,” with the Housing Element Overlay Zone as Division 5 of Article VIII, “Overlay Zones and Historic Preservation.”
BACKGROUND:

The Town of Los Gatos is required to prepare an updated Housing Element for the period covering 2023-2031 that is certified by the State Housing and Community Development Department (HCD). The Housing Element is one of nine State-mandated elements that must be included in every General Plan. The Housing Element assesses housing needs for all income

PAGE 2 of 6
SUBJECT: General Plan Amendment and Housing Element Overlay Zone/Z-23-002 and GP23-002 DATE: September 28, 2023
groups within the community and identifies implementation programs to meet those housing needs. Unlike other General Plan elements, the Housing Element must be updated every eight years, rather than every 10 to 20 years, must address statutory requirements regarding its BACKGROUND (continued):
content, and is subject to mandatory review by HCD. The Town’s Regional Housing Needs Allocation (RHNA) for the sixth cycle planning period is 1,993 units.

On January 30, 2023, the Town Council adopted the 2023-2031 Housing Element with modifications to the Sites Inventory, finding that it was in substantial compliance with State law. Two of the Implementation Programs contained in the Housing Element adopted by Town Council are the basis for the items under consideration and described in further detail below.

On May 30, 2023, the Town received HCD’s findings/comment letter on the Revised Draft Housing Element. The findings/comment letter is in reference to the Town’s Housing Element submitted to HCD on March 31, 2023.

On July 20, 2023, at a special meeting, the General Plan Committee (GPC) reviewed the requests described below and recommended approval of the General Plan amendments to the Planning Commission and Town Council.

On August 23, 2023, the Planning Commission met to discuss the amendments to the 2020 General Plan Land Use Element and Chapter 29 of the Town Code and made a recommendation to the Town Council. The Planning Commission received and considered public comments on the proposed amendments, reviewed the proposed modifications, and unanimously recommended approval to Town Council (Attachments 4 through 7).

DISCUSSION:

The Planning Commission reviewed and discussed the proposed amendments to the 2020 General Plan Land Use Element and Chapter 29 of the Town Code and had no recommended modifications.

A. General Plan Land Use Designation
The 2023-2031 Housing Element includes Implementation Programs that involve an overlay zoning of parcels within the Town to provide modified development standards for residential and mixed-use developments. The purpose of these modified development standards is to provide the development capacity required by State law and the Town’s RHNA, as mentioned above. The first step in creating the new minimum and maximum densities referenced in these Implementation Programs is the addition of the Housing

PAGE 3 of 6
SUBJECT: General Plan Amendment and Housing Element Overlay Zone/Z-23-002 and GP23-002 DATE: September 28, 2023
Element Overlay Zone (HEOZ) and the associated development standards in the 2020 General Plan Land Use Element. In addition to density, those development standards also DISCUSSION (continued):
include lot coverage, floor area, and height, as provided below in Table LU-2 and included in the draft resolution (Attachment 1).

The Town received public comments suggesting a future need to add sites to the Sites Inventory as a result of No Net Loss law. In response to these comments, the modifications shown below in underlined text to Table LU-2, HEOZ Development Standards were considered and recommended for approval by the Planning Commission to ensure that standards are included for all land use designations. Given the requirements of No Net Loss law, the addition of sites to the Sites Inventory may be required in the future as sites on the current inventory are developed, and so establishing regulations for all designations is recommended.

Table LU-2 HEOZ Development Standards
Designation Standards
Low Density Residential Density: 0 – 5 du/ac
Lot Coverage: Up to 50%
Max. Height: 30 feet
Medium Density Residential Density: 14 – 22 du/ac
Density in Very High Fire Hazard
Severity Zones: 5 – 12 du/ac
Lot Coverage: Up to 75%
Max. Height: 35 feet
High Density Residential Density: 30 – 40 du/ac
Lot Coverage: Up to 75%
Max. Height: 45 feet
Mixed-Use Density: 30 – 40 du/ac
FAR: Up to 3.0
Max. Height: 45 feet
Neighborhood Commercial Density: 10 – 20 du/ac
FAR: Up to 1.0
Max. Height: 35 feet
Central Business District Density: 20 – 30 du/ac
FAR: Up to 2.0
Max. Height: 45 feet
North Forty Specific Plan Density: 30 – 40 du/ac
FAR: As defined in Specific Plan
Max. Height: As defined in Specific Plan
Office Professional Density: 10 – 20 du/ac
FAR: Up to 1.0
Max. Height: 35 feet

PAGE 4 of 6
SUBJECT: General Plan Amendment and Housing Element Overlay Zone/Z-23-002 and GP23-002 DATE: September 28, 2023
Service Commercial Density: none
FAR: Up to 1.0
Max. Height: 35 feet
Light Industrial Density: none
FAR: Up to 1.0
Max. Height: 35 feet
DISCUSSION (continued):

B. Zoning
Due to changes to State law, many components of the Affordable Housing Overlay Zone (AHOZ) are no longer compliant with State law. Staff expects the replacement of the AHOZ with the HEOZ will provide greater flexibility for residential and mixed-use projects in order to create more potential for the development of housing.

In response to public comments received regarding adding sites to the current Sites Inventory, the Planning Commission considered and recommended approval of the modifications shown in underlined text to Table 1A (HEOZ Development Standards), shown on the following page to reflect the possibility of adding sites to the Sites Inventory in the future as sites on the current inventory are approved for development (Attachment 2).

At the August 23, 2023, Planning Commission meeting, staff verbally notified the Commission of a modification that would be made to Table 1A to specify the density for the North Forty Specific Plan Area. Additionally, staff has made edits to the draft ordinance to further describe that a property with a HEOZ designation may be developed under the new regulations as a residential or mixed-use project (Attachment 2, Exhibit A). Non-residential projects will be subject to the development standards of the underlying zone.

PAGE 5 of 6
SUBJECT: General Plan Amendment and Housing Element Overlay Zone/Z-23-002 and GP23-002 DATE: September 28, 2023
DISCUSSION (continued):

Table 1A (HEOZ Development Standards)
General Plan
Land Use
Designation
Zoning Minimum Yards Maximum
Lot
Coverage
Maximum
Floor Area
Ratio (FAR)
Maximum
Height
Limit (ft)
Density
Units Per Acre
Low Density
Residential
R-1 As authorized by
Section 29.40.405
50% N/A 30 feet 0-5
Medium Density
Residential
R-1D, R-D,
and R-M
As authorized by
Section 29.40.405,

29.40.530, and

29.40.645
75% N/A 35 feet 14-22 or 5-12
in Very High
Fire Hazard
Severity Zones
High Density
Residential
R-M As authorized by
Section 29.40.645
75% N/A 45 feet 30-40
Mixed-Use CH As authorized by
Section 29.60.435
N/A 3.0 45 feet 30-40
Neighborhood
Commercial
C-1 As authorized by
Section 29.60.225
N/A 1.0 35 feet 10-20
Central Business
District
C-2 As authorized by
Section 29.60.335
N/A 2.0 45 feet 20-30
North Forty
Specific Plan
NF-SP As defined in
Specific Plan
As defined
in Specific
Plan
As defined
in Specific
Plan
As defined
in Specific
Plan
30-40
Office
Professional
O As authorized by
Section 29.60.100
N/A 1.0 35 feet 10-20
Service
Commercial
LM As authorized by
Section 29.70.125
N/A 1.0 35 feet none
Light Industrial CM As authorized by
Section 29.70.235
N/A 1.0 35 feet none
PUBLIC COMMENTS:

Public notification has included a legal ad in the paper. The meeting has also been publicized on the Town’s website and through the Town’s social media platforms. As of the drafting of this report, no comments from the public have been received.

CONCLUSION:

Staff recommends that the Town Council:

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SUBJECT: General Plan Amendment and Housing Element Overlay Zone/Z-23-002 and GP23-002 DATE: September 28, 2023

1. Make the finding that no further environmental analysis is required (Attachments 1 and Attachment 2);

2. Adopt a resolution to amend the 2020 General Plan Land Use Element to include a description of the HEOZ (Attachment 1); and

3. Introduce an ordinance, by title only, effecting an amendment to the Town Code to replace the AHOZ of Division 5, Article VIII, “Overlay Zones and Historic Preservation,” with the CONCLUSION (continued):

HEOZ (Attachment 2) with any specific changes identified and agreed upon by the majority of the Town Council.

A. Alternatives
Alternatively, the Council may:

1. Continue this item to a date certain with specific direction to staff; or

2. Refer the item back to the Planning Commission with specific direction.

ENVIRONMENTAL ASSESSMENT:

An Environmental Impact Report (EIR) was prepared and certified for the 2040 General Plan Update on June 30, 2022, which included the proposed General Plan Amendments. No further environmental analysis is required.

ATTACHMENTS:

1. Draft Resolution for the General Plan Amendment with Exhibit A

2. Draft Ordinance for the Zoning Amendment with Exhibit A

3. Draft Town Code Amendments in Tracked Changes

4. August 23, 2023, Planning Commission Staff Report with Exhibits 1-3

5. August 23, 2023, Planning Commission Addendum with Exhibit 4

6. August 23, 2023, Planning Commission Desk Item with Exhibits with Exhibit 5

7. August 23, 2023, Planning Commission Verbatim Minutes

8. Public Comment received between 11:01 a.m., Wednesday, August 23, 2023, and 11:00 a.m., Thursday, September 28, 2023

ATTACHMENT 1
RESOLUTION 2023-___

RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS AMENDING THE 2020 GENERAL PLAN LAND USE ELEMENT TO
INCLUDE A DESCRIPTION OF THE HOUSING ELEMENT OVERLAY ZONE.

GENERAL PLAN AMENDMENT APPLICATION GP-23-002
PROPERTY LOCATION: TOWN WIDE
APPLICANT: TOWN OF LOS GATOS
WHEREAS, the General Plan Committee at its meeting of July 20, 2023, recommended that the 2020 General Plan Land Use Element be amended to include a description of the Housing Element Overlay Zone; and
WHEREAS, the Planning Commission at its meeting on August 23, 2023, reviewed the proposed General Plan amendment and forwarded a recommendation of approval to the Town Council; and
WHEREAS, this matter was regularly noticed in conformance with State and Town law and came before the Town Council for public hearing on October 3, 2023; and WHEREAS, the Town Council accepted the report of the Planning Commission’s recommendation of approval for the proposed General Plan amendment and held a public hearing; and
WHEREAS, the Town Council considered all facts and information related to the request to amend the 2020 General Plan Land Use Element to include a description of the Housing Element Overlay Zone as shown on Exhibit A.

NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS RESOLVES AS FOLLOWS:

1. The Town Council finds as follows:

A. No further Environmental Analysis is required as an Environmental Impact Report (EIR) was prepared and certified for the 2040 General Plan Update on June 30, 2022, which included the proposed General Plan Amendments; and B. The General Plan amendment is internally consistent with the existing goals and policies of the General Plan and its corresponding elements, in that the amendments Draft Resolution to
be modified by Town
Council deliberations
and direction.

will provide for the development of housing for the sites in the Sites Inventory to comply with the Town’s Regional Housing Needs Allocation; and C. The Town has complied with the requirements set forth in Government Code Section 65350 and following.

2. The 2020 General Plan Land Use Element is amended to include the description of the Housing Element Overlay Zone shown in Exhibit A to this Resolution.

3. This amendment was introduced at a regular meeting of the Town Council of the Town of Los Gatos on the 3rd day of October 2023, and adopted by the following vote as a resolution of the Town of Los Gatos at a regular meeting of the Town Council of the Town of Los Gatos on the __day of ______ 2023. This amendment shall take effect 30 days after the date it is adopted.

COUNCIL MEMBERS:

AYES:

NAYS:

ABSENT:

ABSTAIN:

SIGNED:

MAYOR OF THE TOWN OF LOS GATOS

LOS GATOS, CALIFORNIA
DATE: ___________________
ATTEST:

TOWN CLERK OF THE TOWN OF LOS GATOS

LOS GATOS, CALIFORNIA
DATE: ___________________

LU- 1
3 LAND USE ELEMENT
A. Introduction
Los Gatos is a mature, predominantly built-out community. While there is little room for growth or change in the physical environment, land use is dynamic and change is constant from within and outside the community.

Managing change in an effort to maintain our quality of life is a priority of this General Plan and the Community.

The Land Use Element is the framework of the General Plan and is intended to inform and shape the future physical development of Los Gatos. This Element sets forth the patterns of development activity and land uses that will support and enhance the character of the Town. Although all General Plan Elements are of equal importance, the Land Use Element is the most frequently used and referenced section of the General Plan.

Planning for neighborhood preservation and protection is one of the most important purposes of the Town’s General Plan. Preserving the small-town heritage, natural setting, and architectural diversity are also important to this community. One of Los Gatos’s most outstanding assets is the visual diversity of its individual neighborhoods. Existing development represents a variety of architectural styles from various eras, embodying a variety of sizes, design features, and building materials, resulting in neighborhoods with their own unique identity. For example, Downtown Los Gatos is the historic heart of Town with a pedestrian-scale setting of mixed land uses and architecturally historic buildings. It is a unique area that sets the spirit and style of the entire Town.

Maintaining neighborhood quality suggests conservation of existing housing, good street design, traffic control in residential neighborhoods, and development review that adheres to quality design. Factors such as new or excessive traffic, aging or inadequate infrastructure, and even economic pressures may cause disruption of neighborhoods. Neighborhood preservation also includes balancing the intensity of land uses with the existing residential density.

EXHIBIT A

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L A N D U S E E L E M E N T
LU- 2
Los Gatos also focuses on maintaining a “full-service” town that provides a range of goods and services that support the economic vitality of the Town. The commercial centers of Los Gatos are therefore also important to the community.

Under the Los Gatos Boulevard Plan, the community expressed interest in creating a shopping experience and destination that complements but does not compete with the Downtown.

Residential and non-residential uses produce different impacts on the community. The impacts on traffic, noise, schools, open space, and other qualityof-life issues will vary, depending on the final mixture of residential and nonresidential uses approved within the area. The overall planning for the area needs to limit the adverse impacts on the quality of life of all of the residents of Los Gatos and to provide for open space.

The Land Use Element describes land use designations, special planning areas, and existing land uses in Los Gatos. The Land Use Element is divided into the following sections:
 Introduction: A description of the requirements and contents of the Land Use Element.
 Existing Land Uses: A description of existing land uses in Los Gatos.  General Plan Land Use Designations: A description of the characteristics and intensity of the different land use designations in Los Gatos, including a map identifying the location of these land use designations.  Special Planning Areas: A description of special planning areas, including Historic Districts and Specific Plan Overlays.
 Goals, Policies, and Actions: A list of goal, policy, and action statements that provide guidance to Los Gatos on land use decisions.

T O W N O F L O S G A T O S
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L A N D U S E E L E M E N T
LU-3
B. Authority for the Element
California Government Code Section 65302(a) and Public Resources Code Section 2762(a) require that the Land Use Element provide the following information:
 Distribution, location, and extent of land uses for categories of public or private uses. Such categories include, but are not limited to housing, business, industry, open space, natural resources, recreation and enjoyment of scenic beauty, education, and public buildings and grounds.  Population density and building intensity standards for land use designations.

The Land Use Element has the broadest scope of any of the State-required components of the General Plan. In addition to the State’s requirements set forth in the Government Code, it has also been legally established that, while the location of a particular land use may be expressed in general terms, a property owner must be able to identify the General Plan Land Use Designation for his/her parcel from the land use diagram contained in the Land Use Element.

Among the important implementation mechanisms for the Land Use Element are Specific Plans and the Town Code. The California Government Code requires that the Town Code and zoning map be consistent with its General Plan Land Use Element and land use map, and that all provisions of Specific Plans adopted by the Town must be consistent with the General Plan that they implement.

C. Relationship of Land Use Element to other Elements and Plans Because the Land Use Element sets the framework of the General Plan, the Land Use Element relates directly to all goals and policies of the other Elements and unifies the General Plan by providing the overall policy context for the other Elements. The relationship of the Land Use Element to other elements and plans is described below.

T O W N O F L O S G A T O S
2 0 2 0 G E N E R A L P L A N

L A N D U S E E L E M E N T
LU-4
 The Land Use Element addresses circulation by setting out, in its map and policies, the location and size of all roadways in the Town coordinated with the land uses the roads will serve. It also notes the planned capacities of all other infrastructure systemsthatwill be necessary to protect the health and welfare of the Town’s citizens.  The location, type, and density of residential units are key components of the Land Use Element. The Housing Element uses the density ranges specified in the Land Use Element to identify sites to meet the Town’s housing needs.
 The mandates of the Safety Element are reflected in the designation and location of land use, the permitted activities within designated areas, and the patterns of land use that support defensible space, the Town’s contingency plan, and fire and other hazard mitigation.
 The Land Use Element addresses buffers between noise sensitive uses and noise sources.
 The Town conserves resources through policies for the wise use of land, water, and energy.
 Air quality is improved by land use patterns that minimize vehicle travel within the Town.
 The Conservation Element goals address protecting and enhancing the natural environment. Programs that retain natural features such as tree preservation, limited grading, and water conservation maintain the natural character of Los Gatos.
 The Open Space Element refers to the location, character, and use of parks, recreational facilities, and preserved, unimproved land.  Land use designations protect and preserve open spaces.  The Land Use Element reflects the Town’s high priority for quality design.

T O W N O F L O S G A T O S
2 0 2 0 G E N E R A L P L A N

L A N D U S E E L E M E N T
LU-5
 The Land Use and Community Design Elements preserve historical buildings and historic areas, limiting the size of houses, while careful de- sign of new infill developments protects the character of Los Gatos.  California State law requires that all Specific Plans and zoning regulations be consistent with the General Plan. The Hillside Specific Plan, the North Forty Specific Plan, the Redevelopment Plan, and other plans that may be adopted as necessary will be consistent with this General Plan.

D. Existing Land Uses
This section contains qualitative and quantitative descriptions of existing land uses in the Town of Los Gatos and Los Gatos’s Sphere of Influence (SOI). “Existing land uses” refers to the existing built environment, regardless of the General Plan land use designation or zoning designation applied by the Town. This initial assessment is based on data from the Santa Clara County Office of the Assessor. Existing land uses are illustrated in Figure LU-1 and listed in Table LU-1.

1. Residential – Single Family
Approximately 3,183 acres of land in Los Gatos are dedicated to parcels that contain a single, detached residence and related structures. Single-family residential land use is located throughout the Town, with the exception of the public and open spaces in the southern area of the Town and along commercial corridors immediately adjacent to Los Gatos Boulevard and Santa Cruz Avenue. In the SOI, approximately 2,728 acres of land are dedicated to single-family residential land.

2. Residential – Multi-Family
This land use category refers to parcels that contain more than one housing unit. It includes duplexes, triplexes, fourplexes, condominiums, and apartment buildings. This residential land use totals approximately 407 acres in the Town. There is no multi-family housing in the SOI. Multi-family uses are largely clustered in and around the Highway 17 corridor, either between

T O W N O F L O S G A T O S
2 0 2 0 G E N E R A L P L A N

L A N D U S E E L E M E N T

City of
Saratoga
City of
Campbell
·|}þ1 7
CURTNER AVENUE Town Boundary
Sphere of Influence
Water Body
Highway
Creek
City of
Monte Sereno
Vasona Lake
County Park
·|}þ8 5

LOS GATOS-ALMADEN ROAD

BLOSSOM HILL ROAD
City of
San Jose
Lexington
Reservoir
Unincorporated
Santa Clara County
0 0.5 1 Miles
Source: Santa Clara County Office of the Assessor, 2006; DC&E, 2008.

Existing Land Use
Single Family Residential
Multi-Family Residential
Commercial
Office/Professional
Light Industrial
Public Utilities
Public/Quasi-Public
Agricultural
Open Space/Recreation
Vacant
F I G U R E LU - 1

EX I S T I NG L A N D U S E

UNION AVENUE

HARWOOD ROAD

T O W N O F L O S G A T O S
2 0 2 0 G E N E R A L P L A N

L A N D U S E E L E M E N T
LU-7
TABLE LU-1 EXISTING LAND USES
Land Use Category
Number of
Acres
Percent
of Town
Acreage
Percent
of SOI
Acreage
Residential – Single Family 5,911 51.2% 51.9%
Residential – Multi-Family 407 6.5% 0%
Commercial 164 2.6% 0%
Office Professional 126 2% 0%
Light Industrial 37 0.6% 0%
Public/Quasi-Public 440 4.7% 2.8%
Public Utilities 39 0.5% 0.1%
Agricultural 112 1% 1%
Open Space/Recreation 3,841 26.2% 42.2%
Vacant 399 4.7% 2%
Total 11,476 100% 100%
Source: County of Santa Clara, Office of the Assessor, 2006.

Los Gatos Boulevard and Highway 17 or in the area south of Vasona Lake County Park. A significant pocket of multi-family housing is also located in the northwest corner of the Town, just south of the City of Campbell.

3. Commercial
Commercial land refers to parcels that contain either retail businesses—those offering specific products for sale—or businesses that provide day-to-day services such as grocery stores, restaurants, spas and salons, dry cleaners, and nurseries. There are approximately 164 acres of commercial uses in Los Gatos and 1 acre in the SOI. Most commercial parcels in Los Gatos are located along the Santa Cruz Avenue or Los Gatos Boulevard corridors.

T O W N O F L O S G A T O S
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L A N D U S E E L E M E N T
LU-8

4. Office Professional
Office Professional land use refers to parcels that contain offices for medical, legal, insurance, consulting, and similar contracted services. Office and professional uses account for 125 acres in Los Gatos. Like commercial parcels, office professional parcels are concentrated along the Town’s primary commercial corridors. An additional cluster of office and professional uses is located near the Highway 17/85 interchange.

5. Light Industrial
The Light Industrial land use category refers to parcels used primarily for production, manufacturing, and research and development. Additional uses include self-storage and automobile service garages. There are approximately 37 acres of light industrial land uses in Los Gatos. Light industrial uses are concentrated in two small pockets, one just south of Highway 85 and east of Winchester Boulevard, and another along University Avenue, north of Blossom Hill Road.

6. Public/Quasi-Public
Public/Quasi-Public land uses include schools, libraries, police and fire stations, faith communities, and hospitals. These uses are distributed through- out Los Gatos, mostly in single parcels or small groups of parcels. Public/Quasi-Public land uses comprise approximately 291 acres of land in the Town and approximately 149 acres in the SOI.

7. Public Utilities
Public Utilities refer to uses related to communications and energy production and distribution. There are approximately 37 acres in the Town devoted to utilities divided between parcels scattered throughout Los Gatos. Many of these parcels are owned by San Jose Water Company and PG&E and are sites of communications infrastructure.

8. Agricultural
Agricultural land is used for raising and harvesting crops, breeding livestock, and/or housing equipment used for agricultural purposes. According to the Santa Clara County Assessor’s Office, about 64 acres of land scattered

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L A N D U S E E L E M E N T
LU-9
throughout Los Gatos, and approximately 48 acres in the SOI, are devoted to existing agricultural uses. One of the largest areas of agricultural land is the North Forty site, which contains orchard trees, including walnut and fruit trees. Wine grapes can be found in the Santa Cruz Mountains hillside areas.

The California Land Conservation Act of 1965, better known as the Williamson Act, works to preserve agricultural and open space lands through restrictive use contracts administered by counties and cities under State regulations. Private landowners voluntarily restrict their land to agricultural and compatible open space uses under minimum 10-year rolling term contracts, with counties and cities also acting voluntarily. In return, the property tax on a Williamson Act parcel is assessed at a rate consistent with its actual use, rather than potential market value.

Figure LU-2 shows the location of all Williamson Act lands and their designation as well as farmland not covered by the Williamson Act.

Approximately 136 acres of land within the Town limits and 358 acres of land within the SOI are designated Williamson Act land.1 Of these, only 3.85 acres are considered “prime agricultural lands” under the definition of the Land Conservation Act. All of these lands occur in the Town’s SOI. In addition to Williamson Act lands, approximately 32 acres of Unique Farmland are located within Town limits and 8 acres within the SOI. “Unique Farmland” is a designation ap- plied by the State Department of Conservation to land that is capable of producing specific high value crops. In Los Gatos, it is applied to the orchards on the North Forty site.

9. Open Space/Recreation
Open Space/Recreation refers to indoor and outdoor recreational facilities, including public open spaces such as regional parks, community centers, 1 This number is higher than the number of acres in existing Agricultural use because Williamson Act include parcels that are classified by the Assessor as Agriculture, Open Space, and Single Family Residential. Single Family Residential may be considered an acceptable classification by the Assessor since Williamson Act contracts may include provisions for a limited number of dwelling units on the property.

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L A N D U S E E L E M E N T
City of
Campbell
CURTNER AVENUE Town Boundary
Sphere of Influence
Water Body
Creek
City of
Saratoga ·|}þ1 7
City of
Monte Sereno
Vasona Lake
County Park
·|}þ8 5

LOS GATOS-ALMADEN ROAD

BLOSSOM HILL ROAD
City of
San Jose
Lexington
Reservoir
Unincorporated
Santa Clara County
0 0.5 1 Miles
Source: State of California Department of Conservation 2006.

Williamson Act Lands
Prime Agricultural Land
Non-Prime Agricultural Land
Non-Prime/Non-Renewal Agricultural Land
State Farmland Designation

Unique Farmland

UNION AVENUE

HARWOOD ROAD

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2 0 2 0 G E N E R A L P L A N

L A N D U S E E L E M E N T
LU-11
playgrounds and neighborhood parks, country clubs, and natural open spaces.

After Residential – Single Family land use, Open Space/Recreation comprises the second highest percentage of total land in Los Gatos. There are approximately 1,624 acres of open space in the Town and approximately 2,218 acres in the SOI. Much of this acreage is contained in four large facilities: St.

Joseph’s Hill and Sierra Azul Open Space to the south of Los Gatos, and Vasona Lake County Park and La Rinconada Country Club to the north.

10. Vacant
Approximately 292 acres within the Town are vacant parcels of varying sizes that are scattered throughout the Town. Most of the vacant acreage in Los Gatos is located in the single-family residential area on the eastern side of the Town. Parcels here are generally larger than they are elsewhere in Los Gatos, and a number of significantly sized parcels are vacant. Generally, vacancies are more common in residential areas of Los Gatos than in commercial areas, although a few small, isolated commercial vacancies exist. Additionally, the SOI contains approximately 107 acres of vacant property.

E. General Plan Land Use Designations
The Land Use Element is the basis for physical development in Los Gatos. The land use map and designations identify the general location, density, and extent of land available for residential and non-residential uses. Land use designations do not necessarily reflect the existing land use of each parcel. Figure LU-3 presents a map of the land use designations in Los Gatos. Each land use designation is listed and described below.

1. Residential Land Use Designations
This section provides a brief description of each residential land use designation and the desirable range of density for each designation.

T O W N O F L O S G A T O S
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L A N D U S E E L E M E N T
City of
Saratoga
City of
Campbell
·|}þ1 7
CURTNER AVENUE Town Boundary
Sphere of Influence
Water Body
Highway
Creek
City of
Monte Sereno
Vasona Lake
County Park
·|}þ8 5

LOS GATOS-ALMADEN ROAD

BLOSSOM HILL ROAD
City of
San Jose
Lexington
Reservoir
Unincorporated
Santa Clara County
0 0.5 1 Miles
Source: Town of Los Gatos, 2008; Santa Clara County Office of the Assessor, 2008.

General Plan Land Use
Hillside Residential
Low Density Residential
Medium Density Residential
High Density Residential
Mixed-Use Commercial
Central Business District
Neighborhood Commercial
Service Commercial
Office Professional
Light Industrial
Public
Agriculture
Open Space
North Forty Specific Plan Overlay
F I G U R E LU - 3
2020 G ENE RAL

PLAN LAND USE

UNION AVENUE

HARWOOD ROAD

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a. Hillside Residential: 0-1 dwelling units per net acre Up to 3.5 persons per acre
The Hillside Residential designation provides for very low density, rural, large lot or cluster, single-family residential development. This designation allows for development that is compatible with the unique mountainous terrain and vegetation of parts of Los Gatos.
b. Low Density Residential: 0-5 dwelling units per net acre Up to 17.5 persons per acre
The Low Density Residential designation provides for single-family residential properties located on generally level terrain. It encourages single-family residential development in either the standard development established by traditional zoning or by innovative forms obtained through planned development.
c. Medium Density Residential: 5-12 dwelling units per net acre Up to 24 persons per acre
The Medium Density Residential designation provides for multiple-family residential, duplex, and/or small single-family homes.
d. High Density Residential: 12-20 dwellings per net acre Up to 40 persons per acre
The High Density Residential designation provides for more intensive multifamily residential development. Its objective is to provide quality housing in close proximity to transit or a business area.
e. Mobile Home Park: 5-12 dwellings per net acre
Up to 24 persons per acre
The Mobile Home Park designation provides for mobile home parks. The intent is to provide and preserve Mobile Home Parks as a source of affordable housing. This designation is described in this Element; however, it is not represented on the accompanying General Plan Land Use Map.

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2. Non-Residential Land Use Designations
For non-residential land uses, the specific uses mentioned are illustrative, and other compatible uses, including those authorized in any other Zoning District within the Town, may be permitted where authorized by a Conditional Use Permit or Planned Development Overlay Zone. In a mixed-use project residential uses may be permitted in conjunction with other permitted uses in non-residential Zoning Districts with the exception of the Commercial Indus- trial and Controlled Manufacturing Zoning Districts. For non-residential land uses, building intensity limits are indicated by either allowable land coverage or floor area ratio(FAR) and a maximum height limit.
 Office Professional: Up to 50 percent land coverage with a 35-foot height limit
The Office Professional designation provides for professional and general business offices. This designation applies to various locations throughout the Town, often in close proximity to neighborhood- or community-oriented commercial facilities, or as a buffer between commercial and residential uses.

The intent of this designation is to satisfy the community’s need for general business and professional services and local employment.  Central Business District: 0.6 FAR with a 45-foot height limit The Central Business District designation applies exclusively to the down- town and accomplishes the following:
 Encourages a mixture of community-oriented commercial goods, services and lodging unique in its accommodation of small-town style merchants and maintenance of small-town character.
 Maintains and expands landscaped open spaces and mature tree growth without increasing setbacks.
 Integrates new construction with existing structures of historical or architectural significance and emphasizes the importance of the pedestrian.  Mixed-Use Commercial: Up to 50 percent land coverage with a 35-foot height limit
The Mixed-Use Commercial designation permits a mixture of retail, office, and residential in a mixed-use project, along with lodging, service, auto-related businesses, non-manufacturing industrial uses, recreational uses, and restaurants

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Projects developed under this designation shall maintain the small- town, residential scale and natural environments of adjacent residential neighborhoods, as well as provide prime orientation to arterial street frontages and proper transitions and buffers to adjacent residential properties. This designation should never be interpreted to allow development of independent commercial facilities with principal frontage on the side streets. d. Neighborhood Commercial: Up to 50 percent land coverage with a 35- foot height limit
The Neighborhood Commercial designation provides for necessary day-today commercial goods and services required by the residents of the adjacent neighborhoods. This designation encourages concentrated and coordinated commercial development at easily accessible locations.
e. Service Commercial: Up to 50 percent land coverage with a 35-foot height limit
The Service Commercial designation provides for service businesses necessary for the conduct of households or businesses. These include auto repair, building materials sales, paint suppliers, janitorial services, towing businesses, contractors offices and yards, launderers and dry cleaners, as well as wholesaling and warehousing activities.
f. Light Industrial: Up to 50 percent land coverage with a 35-foot height limit
The Light Industrial designation provides for large-scale office developments and well-controlled research and development, industrial-park-type and ser- viceoriented uses subject to rigid development standards. These uses should respond to community or region-wide needs.
g. Public
The Public designation identifies public facilities in the Town such as the Civic Center, courthouse, schools, parks, libraries, hospitals, churches, and fire stations.

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h. Agriculture
The Agricultural designation identifies areas for commercial agricultural crop production.
i. Open Space
The Open Space designation identifies the location of public parks, open space preserves, private preserves, and stream corridors.

F. Special Planning Areas
Development in Los Gatos can be targeted to achieve a more specific outcome by designating specific overlay zones and special planning areas. These areas have more detailed development guidelines that remain consistent with existing policies. Los Gatos has three overlay zones that implement land use policies through the Town Code, five Historic Districts, three Specific Plans, and one Redevelopment Project Area.

1. Overlay Zones
There are three overlay zones in the Town Code, the Landmark and Historic Preservation, Planned Development, and Public School Overlay Zones.  Landmark and Historic Preservation (LHP) Overlay Zone. This zone is designated by Town Council and is applied to individual sites and structures or small areas deemed of architectural and/or historical significance. The structure(s) in LHP overlays are subject to special standards regarding their appearance, use, and maintenance.
 Planned Development (PD) Overlay Zone. The PD overlay zone is intended to ensure orderly planning and quality design that will be in harmony with the existing or potential development of the surrounding neighborhood. The Planned Development Overlay is a specially tailored development plan and ordinance which designates the zoning regulations for the accompanying project, sets specific development standards, and ensures that zoning and the General Plan are consistent. Commercial,

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residential or industrial property or a mixture of these uses may be considered for a Planned Development Overlay.
 Public School (PS) Overlay Zone. The PS overlay zone is intended to allow school buildings to be used, without extensive exterior modifications, in ways which will make it unnecessary to sell school facilities. The overlay permits a variety of community-related and education- related uses, including, but not limited to, museums, community centers, playgrounds, and nursery schools. Any land owned by a public school district (regardless of underlying zone) may be zoned PS.
 Housing Element Overlay Zone (HEOZ). The HEOZ is intended to increase the supply and the mix of housing types, tenure, and affordability within the Town of Los Gatos. Through appropriate densities, the housing element overlay zone encourages the development of housing affordable to all income levels as described in the 2023-2031 Housing Element Sites Inventory to comply with the Town’s Regional Housing Needs Allocation (RHNA) for the sixth cycle Planning period and listed in Table LU-2.

TABLE LU-2 HEOZ Development Standards
Designation Standards
Low Density Residential Density: 0 – 5 du/ac
Lot Coverage: Up to 50%
Max. Height: 30 feet
Medium Density Residential Density: 14 – 22 du/ac
Density in Very High Fire Hazard
Severity Zones: 5 – 12 du/ac
Lot Coverage: Up to 75%
Max. Height: 35 feet
High Density Residential Density: 30 – 40 du/ac
Lot Coverage: Up to 75%
Max. Height: 45 feet
Mixed-Use Density: 30 – 40 du/ac
FAR: Up to 3.0
Max. Height: 45 feet
Neighborhood Commercial Density: 10 – 20 du/ac
FAR: Up to 1.0
Max. Height: 35 feet
Central Business District Density: 20 – 30 du/ac
FAR: Up to 2.0
Max. Height: 45 feet

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North Forty Specific Plan Density: 30 – 40 du/ac
FAR: As defined in Specific Plan
Max. Height: As defined in Specific Plan
Office Professional Density: 10 – 20 du/ac
FAR: Up to 1.0
Max. Height: 35 feet
Service Commercial Density: none
FAR: Up to 1.0
Max. Height: 35 feet
Light Industrial Density: none
FAR: Up to 1.0
Max. Height: 35 feet

2. Historic Districts
The Town has established five historic districts to preserve neighborhoods deemed significant to the history of Los Gatos.
 Almond Grove Historic District. An approximately 40-acre area that constitutes the largest subdivision following incorporation of the Town of Los Gatos. This District was established by ordinance in 1980.  Broadway Historic District. An approximately 100-acre area that is the site of the first residential subdivision and first residential street in the Town of Los Gatos. This District was established by ordinance in 1985.  Los Gatos Historic Commercial District. Bounded by Elm Street to the north, Main Street to the south, Los Gatos Creek to the east, and North Santa Cruz Avenue to the west. The Town’s only concentration of intact historic commercial buildings. It was established by ordinance in 1991.
 Fairview Plaza Historic District. Limited to the cul-de-sac termination of Fairview Plaza, part of an historic subdivision originally surveyed in 1885 known as the “Fairview Addition.” The District retains the same configuration as originally mapped and contains a rare collection of Victorian and Craftsman homes, unique in their compact scale and proximity to one another. This District was established by ordinance in 1992.  University/Edelen Historic District. Bounded by Saratoga Avenue to the north, Main Street to the south, Los Gatos Creek to the east, and the former Southern Pacific Railroad right-of-way to the west. The District is composed of five subdivisions that predate 1900 and contain a number of residential and commercial structures of mixed architectural styles. This District was established by ordinance in 1991. All of Los Gatos’s historic districts are defined by structures that contribute to the District. In every District, the transformation of these structures is tightly regulated.

Demolition of contributing structures is strictly prohibited. In addition, all restoration, rehabilitation, and new construction of principal units must adhere to a series of guidelines for preserving architectural heritage and conforming to existing style. Any modifications to the original design are either restricted or prohibited.

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3. Overlay Designation
The North Forty Specific Plan Overlay is applied to the approximately 40-acre property bounded by Los Gatos Boulevard to the east, Highway 17 to the west, Lark Avenue to the south, and Highway 85 to the North. This Overlay requires the preparation and adoption of a specific plan that will determine the mix of uses, dimensional standards, architectural standards, phasing, and infrastructure to support the development of the property prior to approval of any entitlements. Drawing on the draft North Forty Specific Plan prepared in 1999, the General Plan overlay designation is intended to help guide the future development of this property. The 2020 General Plan Environmental Impact Report assumed a maximum capacity of 750 mixed residential units and 580,000 square feet of retail and offices uses for the purposes of assessing environmental impacts associated with the development of the property. While this is the maximum development capacity under this General Plan, the specific plan may be approved with lower densities and square footage of residential and commercial uses, respectively. The North Forty Specific Pan will be based on the following general guidelines:
 Include a mixture of uses that will complement the Downtown and the rest of the community.
 Be based on sustainable and “smart” development practices.

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 Include public gathering spaces such as a plaza and park.  Provide for a variety of residential housing types, both rental- and owneroccupied. A minimum of 20 percent of the units shall be affordable to households at the moderate income level or below.
 Include high-quality architecture and design that reflects the rural and agricultural history of the site.
 Provide pedestrian-oriented buildings along the Los Gatos Boulevard frontage, with minimal parking oriented to the street.
 Take advantage of the grade change across the site.
 Continue the “boulevard treatment” along Los Gatos Boulevard, with interconnections from one parcel’s drive aisle to the next.  Include connections to existing intersections along Los Gatos Boulevard and Lark Avenue.
 Develop gateway or landmark features at Los Gatos Boulevard and Lark Avenue and at Los Gatos Boulevard and the Highway 85 off-ramp.  Provide an easily accessible, fully connected street network that encourages walking.
 Provide a vegetative buffer and screening along Highways 17 and 85.  Preserve Town character and views.

4. Other Plans
The Hillside Specific Plan and Los Gatos Boulevard Plan areas are each developed according to separate land use goals and in different areas of the Town. In addition to these approved Specific Plans, the Town will be developing a North Forty Specific Plan.
a. Hillside Specific Plan
The Hillside Specific Plan establishes land use policy for the Hillside Study Area, an area of mountainous terrain in the southeastern portion of the Town designated for Hillside Residential development. Adopted by Town Council in 1978, the Specific Plan establishes a series of policies and standards related

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to land use, facilities, services, circulation, fire protection, safety, and open space.

These policies and standards are intended to prevent deficiencies in access to water and sewer services, ensure conservation of the sensitive natural environment, and address differences in Town and County land use regulations.

Development in the Hillside Specific Plan area is prohibited outside of designated “least restrictive development areas” (LRDAs) unless it is compliant with conditions established in the Plan.
b. Los Gatos Boulevard Plan
Adopted by Town Council in 1997, the Los Gatos Boulevard Specific Plan is a policy framework for meeting a series of short, medium, and long range goals related to the commercial revitalization of Los Gatos Boulevard. This Specific Plan is based on a land use concept for which higher density, mixeduse commercial development in the north of the Specific Plan area transitions into residential and community clusters, and then into existing residential neighborhoods just south of the Specific Plan area. This Specific Plan contains policies and design standards targeting safe, attractive public improvements; pedestrian-oriented activity nodes; vital, commercial land use; distinct gateways, and site-appropriate private improvements. c. Central Los Gatos Redevelopment Project
The Central Los Gatos Redevelopment Project, which focuses on an area located around Downtown Los Gatos, contains a mix of residential and non- residential land use designations. The Town of Los Gatos Redevelopment Agency has the authority to facilitate property acquisition and management, construction of public improvements, structural rehabilitation, and site assembly within the Project Area. The project was adopted in 1991, following the 1989 Loma Prieta earthquake. The main objectives of the project are to eliminate blight, assemble land parcels for improved development, strengthen the economic base of downtown, and improve undeveloped and underutilized areas.

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G. Goals, Policies, and Actions
The following goals, policies, and actions guide future physical development throughout Los Gatos.

Policy LU-1.1 Encourage developers to engage in discussions as early as possible regarding the nature and scope of the project and possible impacts and mitigation requirements.

Policy LU-1.2 Ensure that new development preserves and promotes existing commercial centers consistent with the maintenance of a small-scale, small-town atmosphere and image.

Policy LU-1.3 To preserve existing trees, natural vegetation, natural topography, riparian corridors and wildlife habitats,
and promote high quality, well-designed, environmentally sensitive, and diverse landscaping in new and existing
developments.

Policy LU-1.4 Infill projects shall be designed in context with the neighborhood and surrounding zoning with respect to the existing scale and character of surrounding structures, and should blend rather than compete with the established
character of the area.

Policy LU-1.5 Encourage private/public funding, development, and operation of cultural amenities, activities, and centers consistent with the small-town character of Los Gatos.

Goal LU-1 To preserve, promote, and protect the existing small-town character and quality of life within Los
Gatos.

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Policy LU-1.6 Recognizing that our ability to preserve our small-town character is somewhat dependent on decisions in surrounding communities, continue and expand Town participation in planning processes in neighboring
jurisdictions and regional bodies in order to develop
innovative, effective, and coordinated land use,
transportation, and hillside development plans and
standards that will help preserve our small-town character.

Policy LU-1.7 Use task forces, ad hoc committees and other means as appropriate to involve residential and commercial interests in Town matters.

Policy LU-1.8 Commercial development of any type (office, retail, research and development, etc.) shall be designed in keeping with the small-town character of Los Gatos.

Policies
Policy LU-2.1 Minimize vehicle miles traveled for goods and services by allowing and encouraging stores that provide these goods within walking distance of neighborhoods in Los Gatos.

Policy LU-2.2 Promote telecommuting and home-based businesses by allowing live-work and work-live uses in existing and future residential development.

Goal LU-2 To maintain a balanced, economically stable community within environmental goals.

Goal LU-3 To coordinate with surrounding jurisdictions and other local and regional agencies that may affect Los
Gatos’s future development patterns and character.

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Policies
Policy LU-3.1 Cooperate with the County of Santa Clara to encourage the annexation of unincorporated islands into the Town.

The Town will not require the installation of curbs,
gutters, sidewalks, or street lights as a condition of
annexation nor will these improvements be imposed on
annexed areas unless the residents of the area request such improvements and are willing to participate in the cost of such improvements. This does not prevent the Town
from requiring such improvements as a condition of
approval of any zoning or subdivision approval if such
conditions are normally made on those items and the
improvements would be in keeping with the
neighborhood.

Policy LU-3.2 Work with Santa Clara County to ensure that projects developed in the County meet Town policies and standards, do not induce further development, and do not un- duly
burden the Town.

Policies
Policy LU-4.1 Integrate planning for the North Forty area, Los Gatos Boulevard, Vasona Light Rail area, and Downtown so that development in each area takes into consideration the Town as a whole.

Policy LU-4.2 Allow development only with adequate physical infrastructure (e.g. transportation, sewers, utilities, etc.) and social services (e.g. education, public safety, etc.).

Goal LU-4 To provide for well-planned, careful growth that reflects the Town’s existing character and
infrastructure.
ture.

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Policy LU-4.3 Only approve projects for which public costs can be justified by the overall benefit to the community.

Policy LU-4.4 Project applicants shall evaluate and provide appropriate mitigation measures to reduce impacts on urban services including schools, utilities, police, and fire.

Policy LU-4.5 Discourage corridor lots. Corridor lots shall only be allowed if the use of a corridor lot decreases the amount of public street required for the subdivision, contributes to the surrounding neighborhood, and is in context with the existing scale and established character of the neighborhood. The subdivider shall also demonstrate that the use of a corridor lot benefits surrounding properties.

Policy
Policy LU-5.1 Use task forces, ad hoc committees, and other means as appropriate to involve residential and commercial interests in Town matters.

Action
Action LU-5.1 Utilize traditional communication tools and new media and technology to provide clear and current information on Town processes and decisions and to encourage public participation in Town government.

Goal LU-5 To encourage public involvement in Town planning processes.

Goal LU-6 To preserve and enhance the existing character and sense of place in residential neighborhoods.

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Policies
Policy LU-6.1 Protect existing residential areas from the impacts of nonresidential development.

Policy LU-6.2 Allow non-residential activity in residential areas only when the character and quality of the neighborhood can
be maintained.

Policy LU-6.3 Protect existing residential areas from adjacent nonresidential uses by assuring that buffers are developed and maintained.

Policy LU-6.4 Prohibit uses that may lead to the deterioration of residential neighborhoods, or adversely impact the public safety or the residential character of a residential neighborhood.

Policy LU-6.5 The type, density, and intensity of new land use shall be consistent with that of the immediate neighborhood.

Policy LU-6.6 In order to reduce landfill, conserve resources, and preserve neighborhood character, demolitions shall be discouraged in established residential neighborhoods and applicants shall submit structural reports to determine whether the demolition of any principal structure is justified.

If allowed, the replacement house should be similar in size and scale to other homes in the neighborhood and maintain the neighborhood character.

Policy LU-6.7 Continue to encourage a variety of housing types and sizes that is balanced throughout the Town and within
neighborhoods, and that is also compatible with the character of the surrounding neighborhood.

Policy LU-6.8 New construction, remodels, and additions shall be compatible and blend with the existing neighborhood.

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Policy LU-6.9 The Housing Element assumes that sites designated medium and high density residential will be developed at the upper end of the density range. If the Town approves a
development at a lower density on one of these sites, staff shall identify one or more other sites to maintain the Town’s capacity to meet its housing needs as identified in the Housing Element, subject to neighborhood compatibility
and mitigation of traffic impacts.

Policy LU-6.10 Require applicants to submit letters of justification to show how new residential development contributes to the balance of types and sizes of housing available in Los Gatos.

Actions
Action LU-6.1 Develop standards for traffic, noise, intensity, and overall size for non-residential uses in residential zones.

Action LU-6.2 The conditional use permit approvals for non-residential uses in residential zones shall be reviewed by the Planning Commission on an as-needed basis for any adverse im- pacts, nuisances, or any required modifications.

Policies
Policy LU-7.1 Allow redevelopment of unused school sites commensurate with the surrounding residential
neighborhood and availability of services.

Goal LU-7 To use available land efficiently by encouraging appropriate infill development.

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Policy LU-7.2 To ensure compatibility with surrounding neighborhoods, infill projects shall demonstrate that the development meets the criteria contained in the Development Policy for In-Fill Projects and the deciding body shall make findings consistent with this policy.

Policy LU-7.3 Infill projects shall contribute to the further development of the surrounding neighborhood (e.g. improve circulation, contribute to or provide neighborhood unity, eliminate a blighted area) and shall not detract from the existing quality of life.

Policy LU-7.4 Infill projects shall be designed in context with the neighborhood and surrounding zoning with respect to the existing scale and character of surrounding structures, and should blend rather than compete with the established
character of the area.

Policies
Policy LU-8.1 Maintain a Code Compliance function to effectively enforce the land use regulations in the Town Code.

Policy LU-8.2 Town staff shall identify major violations (illegal units, sign violations, illegal uses, tree removals, grading
violations, etc.) without waiting for public complaint.

Town staff shall act on minor violations (illegally parked cars, boats, trailers and campers, etc.) based on public com- plaints. Additional violations that may be observed during investigation of a complaint shall also be acted on.

Goal LU-8 To uphold and enforce adopted land use regulations.

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Policies
Policy LU-9.1 Ensure that new development preserves and promotes existing commercial centers consistent with the maintenance of a small-scale, small-town atmosphere and image.

Policy LU-9.2 Maintain a variety of commercial uses, including a strong Downtown commercial area combined with Los Gatos
Boulevard and strong neighborhood commercial centers to meet the shopping needs of residents and to preserve the small-town atmosphere.

Policy LU-9.3 Encourage a mix of retail and office uses in commercial areas, except in the Central Business District designation, where retail should be emphasized and office should be
limited to upper floors and other areas as defined by the Town Code.

Policy LU-9.4 Encourage existing light industry and service commercial uses to remain or be replaced with similar uses.

Policy LU-9.5 Encourage the development and retention of locally owned stores and shops.

Policy LU-9.6 Encourage development that maintains and expands residentoriented services and/or creates employment opportunities for local residents consistent with overall land use policies of the Town.

Policy LU-9.7 “Broadening the tax base” shall never be the sole reason for allowing new commercial development or approving a
change in a commercial land use.

Goal LU-9 To provide residents with adequate commercial and industrial services.

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Policy LU-9.8 Retail sales tax “leakage” should be kept to a minimum by providing in-town convenience and comparative shopping
opportunities.

Policy LU-9.9 Buffers shall be required as conditions of approval for nonresidential projects that are adjacent to residential areas and may consist of landscaping, sound barriers, building setbacks, or open space.

Policy LU-9.10 Prohibit new commercial or industrial zoning adjacent to school sites and carefully consider the impacts of new
school sites in industrial and commercial land use
designations.

Action
Action LU-9.1 The Town should identify those businesses that are needed in the Town and actively recruit those businesses.

Policies
Policy LU-10.1 Encourage the development and retention of small businesses and independent stores and shops Downtown
that are consistent with small-town character and scale.

Policy LU-10.2 Recognize and encourage the different functions, land use patterns, and use mixes of the various commercial areas within the Downtown. These include:
a. The pedestrian scale and orientation of the Central
Business District.

Goal LU-10 To preserve Downtown Los Gatos as the historic center of the Town, with goods and services for local
residents, while maintaining the existing Town
identity, environment, and commercial viability.

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b. The neighborhood-serving commercial land use pattern of areas north of Saratoga Avenue to Blossom Hill Road.
c. The mixed use commercial activities along Santa
Cruz Avenue and the service commercial activities
along University Avenue between Andrews Street
and Blossom Hill Road.

Policy LU-10.3 Establish and maintain strong boundaries between the Central Business District designation and adjacent residential neighborhoods.

PolicyLU-10.4 Encourage mixed usesto increase residential opportunities in commercial zones Downtown, taking into
consideration potential impacts to loss of commercial
opportunities.

Policies
Policy LU-11.1 Zoning shall be changed as part of development applications to provide consistency with the Vasona Light Rail Element and other elements of this General Plan and with any future specific plan prepared for this area.

Policy LU-11.2 The Town shall encourage uses that serve Town residents.

These include, but are not limited to, open space, playfields, office, retail, and other commercial uses.

Residential uses may be permitted as part of mixed-use
development and only with acceptable mitigation of
adverse noise, air quality, and other environmental
hazards.

Goal LU-11 To plan for development of a variety of uses in the North Forty area in a coordinated and comprehensive way.

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Policy LU-11.3 Provide coordinated infrastructure in the North Forty area.

Policy LU-11.4 Include a variety of regional destination and local-serving commercial uses in the North Forty area, following a logical land use pattern that takes advantage of the site opportunities while protecting adjacent uses.

Policy LU-11.5 Avoid negative effects on the long-term development potential of the area surrounding the North Forty area.

Policy LU-11.6 Incorporate multi-modal links from the North Forty area to the Vasona Light Rail station into the North Forty Specific Plan.

Action
Action LU-11.1 Prepare and adopt a specific plan for the North Forty area prior to development of the site.

Policies
Policy LU-12.1 Encourage redevelopment and assemblage of parcels that have experienced a high vacancy rate over a prolonged period of time, possibly including appropriate and compatible rezoning.

Policy LU-12.2 Encourage a mix of uses along Los Gatos Boulevard, in- cluding, where appropriate, mixed-use parcels that are
compatible with surrounding uses.

Goal LU-12 To ensure an appropriate mix of land use types along Los Gatos Boulevard in order to maintain the
economic vitality of the corridor and continue to
serve the needs of Town residents.

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Policy LU-12.3 New landscaping, streetscape improvements and new development along Los Gatos Boulevard shall incorporate pedestrian amenities, scale, and design.

Policy LU-12.4 Encourage mixed uses to increase residential opportunities in commercial zones.

Policy LU-12.5 Retain and enhance auto dealerships.

Policy LU-12.6 Neighborhood commercial, multi-family residential, and office uses shall be concentrated south of Los Gatos–
Almaden Road.

Policy LU-12.7 New and relocating auto-related businesses shall be located north of Los Gatos–Almaden Road, adjacent to existing auto dealerships, or on a vacant site previously used for permitted auto sales.

Policy LU-12.8 Uses on Los Gatos Boulevard south of Roberts Road shall be residential or office; existing non-residential uses shall not be intensified; and existing vacant property and
residential uses shall be developed as Single Family
Residential.

Policy LU-12.9 Encourage replacement of vacated business south of Los Gatos–Almaden Road and north of Roberts Road/Shannon
Road with neighborhood commercial, multi-family, or office uses.

Goal LU-13 To promote appropriate and compatible development along Los Gatos Boulevard that complements the whole Town and serves residents and families.

LU-34
Policies
Policy LU-13.1 Development shall transition from higher intensity uses at the north end of Los Gatos Boulevard to existing
residential uses at the south end of Los Gatos Boulevard.

Policy LU-13.2 Commercial activity along Los Gatos Boulevard shall complement the whole Town and shall provide a
depend-
able source of income, employment opportunities, goods, and services.

Policy LU-13.3 New projects along Los Gatos Boulevard shall incorporate a family and resident orientation.

Policy LU-13.4 New development along Los Gatos Boulevard shall be designed to minimize adverse impacts on adjacent
residential areas.

Policy LU-13.5 Establish and maintain appropriate boundaries between the commercial uses along Los Gatos Boulevard and adjacent residential neighborhoods.

Policy LU-13.6 Provide more pedestrian/bike areas and links to adjacent residential areas to foster neighborhood use of commercial centers.

Policy LU-13.7 Allow auto dealers and other commercial property owners and merchants to conduct occasional promotional
sales activities with a “festival” atmosphere with
appropriate re- strictions to reduce traffic congestion and impacts on neighboring commercial and residential
uses.

Actions
Action LU-13.1 Work with existing auto dealers and other commercial property owners and merchants to develop an
appropriate commercial image specifically for Los Gatos Boulevard.

Action LU-13.2 Use the adopted Los Gatos Boulevard Plan and Commercial Design Guidelines to review development
proposals and exterior improvements to existing
buildings.

1 of 4
Ordinance October 3, 2023

DRAFT ORDINANCE

AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS AMENDING CHAPTER 29, “ZONING REGULATIONS,” OF THE TOWN CODE TO REPLACE THE AFFORDABLE HOUSING OVERLAY ZONE DIVISION 5 OF ARTICLE VIII, “OVERLAY ZONES AND HISTORIC PRESERVATION,” WITH THE HOUSING ELEMENT OVERLAY ZONE AS DIVISION 5 OF ARTICLE VIII, “OVERLAY ZONES AND HISTORIC PRESERVATION”
ZONING CODE AMENDMENT APPLICATION Z-23-002
PROPERTY LOCATION: TOWN WIDE
APPLICANT: TOWN OF LOS GATOS
WHEREAS, the Town of Los Gatos 2023-2031 Housing Element identifies amending the Town Code to create the Housing Element Overlay Zone as a strategy to accommodate the Town’s Regional Housing Needs Allocation (RHNA); and
WHEREAS, the Planning Commission at its meeting on August 23, 2023, reviewed the proposed Town Code amendments , held a public hearing, and forwarded a recommendation of approval to the Town Council; and
WHEREAS, this matter was regularly noticed in conformance with State and Town law and came before the Town Council for public hearing on October 3, 2023; and WHEREAS, the Town Council accepted the report of the Planning Commission’s recommendation of approval for the proposed Town Code amendment and held a public hearing; and
WHEREAS, the Town Council considered all facts and information related to a request to amend the Town Code as shown on Exhibit A.

NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES HEREBY ORDAIN AS FOLLOWS:

SECTION I. FINDINGS
The Town Council finds as follows:

A. No further Environmental Analysis is required as an Environmental Impact Report (EIR) was prepared and certified for the 2040 General Plan Update on June 30, 2022, which included the proposed Zoning Code amendments; and
B. The Town Code Amendments are consistent with the General Plan and its elements in that Draft Ordinance: subject to
modification by Town Council based
on deliberations and direction
ATTACHMENT 2

2 of 4
Ordinance October 3, 2023
the proposed zonings are consistent with the proposed General Plan land use designations; and
C. That all proceedings have been conducted in compliance with the provisions of Government Code Section 65850 et seq.; and
SECTION II. AMENDMENTS
Chapter 29, Article VIII., Division 5 of the Town Code is hereby amended to read as follows:

ARTICLE VIII. OVERLAY ZONES AND HISTORIC PRESERVATION
…
DIVISION 5. HOUSING ELEMENT OVERLAY ZONE
Sec. 29.80.505. Intent.

The Housing Element Overlay Zone (HEOZ) ordinance in this division is intended to increase the supply and the mix of housing types, tenure, and affordability within the Town of Los Gatos. Through appropriate densities, concessions, and fee deferrals or waivers, the HEOZ encourages the development of housing affordable to all income levels on sites within the Town that are deemed to be most appropriate for such uses. The Housing Element lists sites within the Town of Los Gatos as key housing opportunities. The designation of these sites will assist the Town in meeting its Regional Housing Needs Allocation (RHNA), as required by the State.

Sec. 29.80.510. HEOZ and underlying zoning.

A property that has the HEOZ designation may be developed with a residential or mixeduse project based on the standards provided in this division or, where standards are not specified, then based on the standards provided in the underlying zone. The underlying zoning development standards will remain in effect for all other development without a residential component.

Pursuant to Government Code Section 65583.2(i), by right development will be allowed when 20 percent or more of the units are affordable to lower income households.

Sec. 29.80.515. HEOZ general development standards.

A proposed residential project, including a mixed-use project within the HEOZ shall be designed and constructed in conformity with the development standards for the corresponding zoning and General Plan Land Use designation in Table 1A (Overlay Zones Development Standards). Regardless of the underlying zoning designation, no residential project or mixedPage 107 3 of 4
Ordinance October 3, 2023
use project with residential may be developed that does not meet the applicable HEOZ development standards.

Table 1A (HEOZ Development Standards)
General Plan
Land Use
Designation
Zoning Minimum Yards Maximum
Lot
Coverage
Maximum
Floor Area
Ratio (FAR)
Maximum
Height
Limit (ft)
Density
Units Per Acre
Low Density
Residential
R-1 As authorized by
Section 29.40.405
50% N/A 30 feet 0-5
Medium Density
Residential
R-1D, R-D,
and R-M
As authorized by
Section 29.40.405,

29.40.530, and

29.40.645
75% N/A 35 feet 14-22 or 5-12
in Very High
Fire Hazard
Severity Zones
High Density
Residential
R-M As authorized by
Section 29.40.645
75% N/A 45 feet 30-40
Mixed-Use CH As authorized by
Section 29.60.435
N/A 3.0 45 feet 30-40
Neighborhood
Commercial
C-1 As authorized by
Section 29.60.225
N/A 1.0 35 feet 10-20
Central Business
District
C-2 As authorized by
Section 29.60.335
N/A 2.0 45 feet 20-30
North Forty
Specific Plan
NF-SP As defined in
Specific Plan
As defined
in Specific
Plan
As defined
in Specific
Plan
As defined
in Specific
Plan
30-40
Office
Professional
O As authorized by
Section 29.60.100
N/A 1.0 35 feet 10-20
Service
Commercial
LM As authorized by
Section 29.70.125
N/A 1.0 35 feet none
Light Industrial CM As authorized by
Section 29.70.235
N/A 1.0 35 feet none
SECTION III. CEQA.

An Environmental Impact Report was prepared and certified for the 2040 General Plan Update on June 30, 2022, which included the proposed General Plan Amendments. No further environmental analysis is required.

SECTION IV. Publication.

In accordance with Section 63937 of the Government Code of the State of California, this Ordinance takes effect 30 days from the date of its passage. The Town Clerk shall cause this ordinance or a summary thereof to be published in accordance with Section 36933 of the California Government Code.

4 of 4
Ordinance October 3, 2023
SECTION V. Effective Date.

This Ordinance was introduced at a regular meeting of the Town Council of the Town of Los Gatos on the 3rd day of October 2023, and adopted by the following vote as an ordinance of the Town of Los Gatos at a regular meeting of the Town Council of the Town of Los Gatos on the __day of ______ 2023, by the following vote:

COUNCIL MEMBERS:

AYES:

NAYS:

ABSENT:

ABSTAIN:

SIGNED:

MAYOR OF THE TOWN OF LOS GATOS

LOS GATOS, CALIFORNIA
DATE: __________________
ATTEST:

TOWN CLERK OF THE TOWN OF LOS GATOS

LOS GATOS, CALIFORNIA
DATE: __________________

Chapter 29 - ZONING REGULATIONS
ARTICLE VIII. - OVERLAY ZONES AND HISTORIC PRESERVATION DIVISION 5. HOUSING ELEMENT OVERLAY ZONE
DIVISION 5. HOUSING ELEMENT OVERLAY ZONE
Sec. 29.80.505. Intent.

The Housing Element Overlay Zone (HEOZ) ordinance in this division is intended to increase the supply and the mix of housing types, tenure, and affordability within the Town of Los Gatos. Through appropriate densities, concessions, and fee deferrals or waivers, the HEOZ encourages the development of housing affordable to all income levels on sites within the Town that are deemed to be most appropriate for such uses. The Housing Element lists sites within the Town of Los Gatos as key housing opportunities. The designation of these sites will assist the Town in meeting its Regional Housing Needs Allocation (RHNA), as required by the State.

Sec. 29.80.510. HEOZ and underlying zoning.

A property that has the HEOZ designation may be developed with a residential or mixed-use project based on the standards provided in this division or, where standards are not specified, then based on the standards provided in the underlying zone. The underlying zoning development standards will remain in effect for all other development without a residential component.

Pursuant to Government Code Section 65583.2(i), by right development will be allowed when 20 percent or more of the units are affordable to lower income households.

Sec. 29.80.515. HEOZ general development standards.

A proposed residential project, including a mixed-use project within the HEOZ shall be designed and constructed in conformity with the development standards for the corresponding zoning and General Plan Land Use designation in Table 1A (Overlay Zones Development Standards). Regardless of the underlying zoning designation, no residential project or mixed-use project with residential may be developed that does not meet the applicable HEOZ development standards.

Table 1A (HEOZ Development Standards)
General Plan
Land Use
Designation
Zoning Minimum Yards Maximum
Lot
Coverage
Maximum
Floor Area
Ratio (FAR)
Maximum
Height
Limit (ft)
Density
Units Per Acre
Low Density
Residential
R-1 As authorized by
Section 29.40.405
50% N/A 30 feet 0-5
Medium Density
Residential
R-1D, R-D,
and R-M
As authorized by
Section 29.40.405,

29.40.530, and

29.40.645
75% N/A 35 feet 14-22 or 5-12
in Very High
Fire Hazard
Severity Zones
High Density
Residential
R-M As authorized by
Section 29.40.645
75% N/A 45 feet 30-40
Mixed-Use CH As authorized by
Section 29.60.435
N/A 3.0 45 feet 30-40
Neighborhood
Commercial
C-1 As authorized by
Section 29.60.225
N/A 1.0 35 feet 10-20

EXHIBIT A

Central Business
District
C-2 As authorized by
Section 29.60.335
N/A 2.0 45 feet 20-30
North Forty
Specific Plan
NF-SP As defined in
Specific Plan
As defined
in Specific
Plan
As defined
in Specific
Plan
As defined
in Specific
Plan
30-40
Office
Professional
O As authorized by
Section 29.60.100
N/A 1.0 35 feet 10-20
Service
Commercial
LM As authorized by
Section 29.70.125
N/A 1.0 35 feet none
Light Industrial CM As authorized by
Section 29.70.235
N/A 1.0 35 feet none

Chapter 29, Article VIII., Division 5 of the Town Code is hereby amended to remove the following strikeouts (strikeouts) indicating deleted text and include underlining (underlining) indicating new text:

Sec. 29.80.505. Intent.

The affordable housing overlay zone (AHOZ) ordinance in this division is intended to increase the supply and the mix of housing types, tenure, and affordability within the Town of Los Gatos. Through appropriate densities, concessions, and fee deferrals or waivers, the affordable housing overlay zone encourages the development of housing affordable to all income levels on one (1) property within the Town that is deemed to be most appropriate for such uses. The housing element lists the one (1) property within the Town of Los Gatos as a key housing opportunity site for mixed income affordable housing projects. The designation of this site will assist the Town in meeting its fair share of the region's housing needs required by the State.

Sec. 29.80.510. AHOZ and underlying zoning.

A property that has the AHOZ designation may be developed either in the manner provided in this division or the manner provided in the underlying zone, but not both; use of the overlay zone and the underlying zone are mutually exclusive alternatives. Once the land has developed in the manner provided in the underlying zoning, the property owner shall relinquish the right to redevelop the land using the AHOZ overlay.

Sec. 29.80.515. Applicability of regulations.
(a) This division applies to the one (1) property listed on Table 6-1 of Chapter 6 (Housing Sites Inventory) of the 2015-23 Housing Element Technical Appendix and as identified below:

Affordable housing overlay zone (AHOZ) property:

1. Southbay Development, Knowles Drive east of Winchester Boulevard, APN 424-32-077 (b) The provisions of this division shall not apply if an applicant requests to use the General Plan Density Bonus Policy (HOU-1.3). If the applicant submits a development project application utilizing this density bonus program, the base density on which the bonus is calculated shall be the density of the existing zoning of the property.

Sec. 29.80.520. Qualification.

In order to qualify for the benefits of this overlay zone, residential development projects shall comply with all of the following:

ATTACHMENT 3

(a) Include the following minimum percentage of total units in the development with rents or sales prices that are restricted to the area median income household affordability levels noted below. The income limits shall be established based on the current year area median income for Santa Clara County as set by the appropriate State or Federal government housing agencies.

Required unit affordability levels
Site Low and/or Very Low and Below Moderate and/or Above Moderate Southbay Development
(APN 424-32-077)
40% 60%
(b) Based on a recommendation by the Planning Commission after its review of a project, the Town Council may approve a modification to the affordability ratios in subsection (a) if the applicant can demonstrate with actual project specific pro forma, financial and local market data, that a specific ratio is not financially feasible. The Town Council may only approve a modification to a ratio if the overall Regional Housing Needs Allocation (RHNA) unit production for an individual income category (e.g. very low, low and moderate income) has been achieved by the Town during the applicable housing element period. (c) Ensure that affordable units are deed-restricted for a period of not less than fifty-five (55) years, or for the longest feasible time. An affordable housing agreement shall be executed prior to recording any final map for the underlying property or prior to the issuance of any building permit for the housing development, whichever comes first, unless the Community Development Director approves an alternative phasing plan, at which time the affordable housing agreement shall be executed no later than the issuance of the certificate for the fifty-first percent of the market rate units. The affordable housing agreement shall be binding on all future owners and successors of interest of the housing development.

Sec. 29.80.525. Permitted uses in the AHOZ.
(a) Multifamily dwellings;
(b) Two-family dwellings;
(c) Single-family dwellings.

Sec. 29.80.530. Conditional uses permitted.

No conditional use permit shall be required for a housing development that meets the intent and regulations contained in this division.

Sec. 29.80.535. Application.

Residential developments using the AHOZ standards shall be required to submit applications for architecture and site review. The application shall be subject to review by the Planning Commission with a recommendation to Town Council and the review by Town Council shall be final.

Sec. 29.80.540. Affordable housing overlay zones general development standards.

Proposed development within the affordable housing overlay zones shall be designed and constructed in conformity with the development standards in Table 1A (Overlay Zones Development Standards) and Table 1B (Overlay Zones Development Setbacks).

Table 1A (Overlay Zones Development Standards)
Site Maximum
Lot
Coverage
Maximum
Height Limit
(ft)1
Density
Units Per
Acre
Parking Ratio2
Southbay Development (APN
424-32-077)
40% 30 feet
w/separate
garage;
35 feet
w/integrated
garage
20 0—1 bedroom: 1 space
2—3 bedrooms: 2 spaces
4+ bedrooms: 2.5 spaces

1. Building height is increased to 35 feet for residential products that integrate the garage on the first floor, underground or is constructed on a parking podium. Additional height increase may be granted through the architecture and site review process.

2. Tandem parking is permitted.

Table 1B (Overlay Zones Development Setbacks)
Site Required Setbacks
Southbay Development (APN 424-
32-077)
25 ft. from Knowles Avenue property line;
40 ft. from Los Gatos Creek property line;
25 ft. from Southwest Property Line;
West and internal setbacks to be determined by architecture and site review process
Sec. 29.80.545. Affordable housing overlay zones development incentives. (a) Concessions and incentives. Applications meeting the intent of the AHOZ will be automatically granted four (4) concessions at the applicant's sole discretion. The concessions are reductions in the development standards specified in this section, and processing fee waivers. The following development incentives are available to qualifying residential developments within an AHOZ:
(1) Parking standards. Parking standards may be reduced if a parking reduction is requested as one (1) of the four (4) concessions. Parking may be reduced as follows:
a. Reduction to one (1) space per unit for units reserved for seniors or persons with disabilities.
b. Reduction to one (1) space per unit for developments within one-quarter (¼) mile to the proposed Vasona Light Rail Station.
(2) Property setbacks. Any two (2) property setbacks may be reduced by up to fifty (50) percent if an applicant selects the setback reduction as one (1) of the four (4) concessions. The two (2) setback reductions are considered one (1) concession. (3) Lot coverage. The lot coverage may be increased up to fifty (50) percent if the applicant selects the lot coverage increase as one (1) of the four (4) concessions.

(4) Processing fees. The Town shall waive or defer planning, engineering, and building processing fees, except those that are paid directly to Town consultants or for technical studies.

The developer can select one (1) of the following types of fees to be waived as one (1) of the four (4) available concessions:
a. Planning and engineering application fees (but not Town consultant fees). b. Building plan check and inspection fees.
c. Construction mitigation fee.

The fees selected shall be waived if the applicant selects a fee waiver as one (1) of the four (4) automatically granted concessions.

If the developer selects a deferral of all fees noted above rather than a waiver, the fees shall be deferred to the time of issuance of the certificate of occupancy for each unit.
(5) Priority processing. The Town shall give qualifying projects the highest processing priority for planning entitlements, building plan check and building inspection.

Sec. 29.80.550. Architecture and site review process.
(a) Affordable housing overlay zone design guidelines. All projects shall comply with the adopted affordable housing overlay zone design guidelines in effect at the time of entitlement approval.
(b) Architecture and site approval. All projects shall require an architecture and site application approval. The Planning Commission shall review each project and make a recommendation to the Town Council. The Town Council is the final decision making authority for AHOZ applications. The Town Council shall adopt a resolution that documents the architecture and site application decision.
(1) Architectural design. Affordable units within a mixed affordable/market rate development may be allowed to vary in interior and exterior design and square footage from market rate units as long as the project remains architecturally harmonious as determined by the approval body. Attached units, smaller (in square footage) units and other design variations from market rate units may be permitted within reason to reduce costs of providing affordable units subject to the required architecture and site approval process.
(c) Environmental review. All projects shall be subject to the requirements of the California Environmental Quality Act.
(d) Findings. In order to qualify for a height increase over the maximum stated in Table 1A, the Planning Commission shall make a recommendation and the Town Council shall find that:
(1) The building massing and dimensional ratios of proposed building components create a harmonious visual balance and contribute to the architectural character of the project or its surroundings.

(2) The height increase is necessary to achieve excellence in architectural design and cannot be accommodated through alternative means such as reducing overall floor to ceiling heights.
(e) Timing of affordable unit construction. Affordable units must be constructed concurrently with market-rate units. The affordable units shall be integrated into the market rate component of the plan to the greatest extent feasible. If complete integration cannot be achieved, the applicant shall provide justification for not meeting the intent of this section and why such integration is not feasible. The applicant shall submit a plan of the affordable and market rate unit distribution in the development to the Town. The Planning Commission shall review and make a recommendation on the affordable and market rate unit distribution plan and the Town Council shall review the final plan for approval.

Sec. 29.80.505. Intent.

The Housing Element Overlay Zone (HEOZ) ordinance in this division is intended to increase the supply and the mix of housing types, tenure, and affordability within the Town of Los Gatos. Through appropriate densities, concessions, and fee deferrals or waivers, the HEOZ encourages the development of housing affordable to all income levels on sites within the Town that are deemed to be most appropriate for such uses. The Housing Element lists sites within the Town of Los Gatos as key housing opportunities for mixed income affordable housing projects. The designation of these sites will assist the Town in meeting its Regional Housing Needs Allocation (RHNA), as required by the State.

Sec. 29.80.510. HEOZ and underlying zoning.

A property that has the HEOZ designation may be developed with a residential or mixeduse project based on the standards provided in this division or, where standards are not specified, then based on the standards provided in the underlying zone. The underlying zoning development standards will remain in effect for all other development without a residential component.

Pursuant to Government Code Section 65583.2(i), by right development will be allowed when 20 percent or more of the units are affordable to lower income households.

Sec. 29.80.515. HEOZ general development standards.

A proposed residential project, including a mixed-use project within the HEOZ shall be designed and constructed in conformity with the development standards for the corresponding zoning and General Plan Land Use designation in Table 1A (Overlay Zones Development Standards). Regardless of the underlying zoning designation, no residential project or mixed-use project with residential may be developed that does not meet the applicable HEOZ development standards.

Table 1A (HEOZ Development Standards
General Plan
Land Use
Designation
Zoning Minimum Yards Maximum
Lot
Coverage
Maximum
Floor Area
Ratio (FAR)
Maximum
Height
Limit (ft)
Density
Units Per Acre
Low Density
Residential
R-1 As authorized by
Section 29.40.405
50% N/A 30 feet 0-5
Medium Density
Residential
R-1D, R-D,
and R-M
As authorized by
Section 29.40.405,

29.40.530, and

29.40.645
75% N/A 35 feet 14-22 or 5-12
in Very High
Fire Hazard
Severity Zones
High Density
Residential
R-M As authorized by
Section 29.40.645
75% N/A 45 feet 30-40
Mixed-Use CH As authorized by
Section 29.60.435
N/A 3.0 45 feet 30-40
Neighborhood
Commercial
C-1 As authorized by
Section 29.60.225
N/A 1.0 35 feet 10-20
Central Business
District
C-2 As authorized by
Section 29.60.335
N/A 2.0 45 feet 20-30
North Forty
Specific Plan
NF-SP As defined in
Specific Plan
As defined
in Specific
Plan
As defined
in Specific
Plan
As defined
in Specific
Plan
30-40
Office
Professional
O As authorized by
Section 29.60.100
N/A 1.0 35 feet 10-20
Service
Commercial
LM As authorized by
Section 29.70.125
N/A 1.0 35 feet none
Light Industrial CM As authorized by
Section 29.70.235
N/A 1.0 35 feet none

PREPARED BY: Jocelyn Shoopman and Erin Walters
Associate Planner and Associate Planner
Reviewed by: Community Development Director, Planning Manager, and Town Attorney 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6872 www.losgatosca.gov

TOWN OF LOS GATOS

PLANNING COMMISSION
REPORT
MEETING DATE: 08/23/2023
ITEM NO: 4
DATE: August 18, 2023
TO: Planning Commission
FROM: Joel Paulson, Community Development Director
SUBJECT: Forward a Recommendation to the Town Council for a Request to Amend the General Plan to Include a Description of the Housing Element Overlay Zone and Amend the Town Code to Modify the Affordable Housing Overlay Zone Division 5 of Article VIII Overlay Zones and Historic Preservation to be the Housing Element Overlay Zone as Division 5 of Article VIII Overlay Zones and Historic Preservation. An Environmental Impact Report (EIR) was prepared and certified for the 2040 General Plan Update on June 30, 2022, which included the proposed General Plan Amendments. No Further Environmental Analysis is Required. Zoning Code Amendment Application Z-23-002 and General Plan Amendment Application GP-23-002. Project Location: Town Wide. Applicant: Town of Los Gatos.

RECOMMENDATION:

Forward a recommendation of approval to the Town Council for the following items:

1. Amend the 2020 General Plan Land Use Element to include a description of the Housing Element Overlay Zone (HEOZ); and

2. Amend the Town Code to modify the Affordable Housing Overlay Zone (AHOZ) of Division 5, Article VIII Overlay Zones and Historic to be the HEOZ.

BACKGROUND:

The Town of Los Gatos is required to prepare an updated Housing Element for the period covering 2023-2031 that is certified by the State Housing Community Development Department (HCD). The Housing Element is one of nine State-mandated elements that must be included in every General Plan. The Housing Element assesses housing needs for all income groups within ATTACHMENT 4

PAGE 2 of 8
SUBJECT: General Plan Amendment and Housing Element Overlay Zone/Z-23-002 and GP23-002 DATE: August 18, 2023
BACKGROUND (continued):
the community and identifies implementation programs to meet those housing needs. Unlike other General Plan elements, the Housing Element must be updated every eight years, rather than every 10 to 20 years, must address statutory requirements regarding its content, and is subject to mandatory review by HCD. The Town’s Regional Housing Needs Allocation (RHNA) for the sixth cycle planning period is 1,993 units.

On January 30, 2023, the Town Council adopted the 2023-2031 Housing Element with modifications to the Sites Inventory, finding that it was in substantial compliance with State law. Two of the Implementation Programs contained in the Housing Element adopted by Town Council are the basis for the items under consideration and described in further detail below.

The Town continues to work with HCD to get the 2023-2031 Housing Element certified and resubmitted its latest version to HCD on March 31, 2023.

The Housing Element Advisory Board (HEAB) met on July 20, 2023, to review and discuss portions of the Town’s interim working Draft Revised Housing Element addressing HCD’s findings/comment letter received by the Town on May 30, 2023.

The most recent information on the status of the ongoing Housing Element update process can be viewed online at: https://www.losgatosca.gov/HousingElement.

DISCUSSION:

A. General Plan Committee
On July 20, 2023, at a special meeting, the General Plan Committee (GPC) reviewed the requests described below and recommended approval of the General Plan amendments to the Planning Commission and Town Council.

B. General Plan Land Use Designation
The 2023-2031 Housing Element includes Implementation Programs that involve rezoning of parcels within the Town to allow for modified development standards. The purpose of these modified development standards is to provide the development capacity required by State law and the Town’s RHNA, as mentioned above.

PAGE 3 of 8
SUBJECT: General Plan Amendment and Housing Element Overlay Zone/Z-23-002 and GP23-002 DATE: August 18, 2023
DISCUSSION (continued):
• Implementation Program BG, General Plan Amendment
Amend the General Plan to modify the designation of 16492 Los Gatos Boulevard and Assessor Parcel Number (APN) 532-07-086 from Low Density Residential to Neighborhood Commercial, modify the designation of the Caltrans right- of-way from Low Density Residential to Medium Density Residential, and establish new maximum densities for the High Residential, Medium Density Residential, Low Density Residential, Mixed-Use, Neighborhood Commercial, and Central Business District land use designations to provide for the development of housing for the sites in the Site Inventory.

The first step in creating the new maximum densities referenced in Implementation Program BG, is the addition of the HEOZ and the associated development standards in the 2020 General Plan Land Use Element. In addition to density, those development standards will also include lot coverage, floor area, and height, as provided in Table LU-2 on the following page and included in Exhibit 2.

The Town has received public comments since the July 20, 2023, GPC meeting suggesting a future need to add sites to the Sites Inventory as a result of No Net Loss law. In response to these comments, staff is recommending the modifications shown in underlined text to Table LU-2, HEOZ Development Standards to ensure that standards are included for all land use designations. Given the requirements of No Net Loss law, the addition of sites to the Sites Inventory may be required in the future as sites on the current inventory are developed.

PAGE 4 of 8
SUBJECT: General Plan Amendment and Housing Element Overlay Zone/Z-23-002 and GP23-002 DATE: August 18, 2023
DISCUSSION (continued):

Table LU-2, HEOZ Development Standards
Designation Standards
Low Density Residential Density: 0 – 5 du/ac
Lot Coverage: Up to 50%
Max. Height: 30 feet
Medium Density Residential Density: 14 – 22 du/ac
Density in Very High Fire Hazard
Severity Zones: 5 – 12 du/ac
Lot Coverage: Up to 75%
Max. Height: 35 feet
High Density Residential Density: 30 – 40 du/ac
Lot Coverage: Up to 75%
Max. Height: 45 feet
Mixed-Use Density: 30 – 40 du/ac
FAR: Up to 3.0
Max. Height: 45 feet
Neighborhood Commercial Density: 10 – 20 du/ac
FAR: Up to 1.0
Max. Height: 35 feet
Central Business District Density: 20 – 30 du/ac
FAR: Up to 2.0
Max. Height: 45 feet
North Forty Specific Plan As defined in Specific Plan
Office Professional Density: 10 – 20 du/ac
FAR: Up to 1.0
Max. Height: 35 feet
Service Commercial Density: none
FAR: Up to 1.0
Max. Height: 35 feet
Light Industrial Density: none
FAR: Up to 1.0
Max. Height: 35 feet
The General Plan modifications to 16492 Los Gatos Boulevard, APN 532-07-086, and the Caltrans right-of-way will be considered in a separate General Plan Amendment application, item 5 of tonight’s Planning Commission agenda.

PAGE 5 of 8
SUBJECT: General Plan Amendment and Housing Element Overlay Zone/Z-23-002 and GP23-002 DATE: August 18, 2023
DISCUSSION (continued):

C. Zoning
The following Implementation Program is included in the Housing Element adopted by Town Council on January 30, 2023, and is presented below, as modified and presented in the July 2023 Interim Working Draft Revised Housing Element. This program proposes to amend the Zoning Code to comply with State Housing Element law:
• Implementation Program BF, Zoning Code Amendments
Amend the Zoning Code to comply with State law and ensure adequate sites are available to accommodate the identified sites in the Sites Inventory. These Code revisions include:

1. Amend the Zoning Code to include a HEOZ to apply to the sites included in the Sites Inventory and to modify the development standards (i.e., density, lot coverage, FAR, height) on those sites;

2. Amend the Affordable Housing Overlay Zone to increase the maximum allowable density from 20 dwelling units per acre to 40 dwelling units per acre;

3. Clarify the text of the non-residential zones regarding housing;

4. Rezone the Caltrans Right-of-Way – Site E3 from R:1:8 to R-M:14-22;

5. Amend the Accessory Dwelling Unit Ordinance; and

6. Amend the Density Bonus Ordinance.

In response to item #1 of Implementation Program BF, staff has drafted amendments to the Zoning Code to replace the AHOZ with the new HEOZ as Division 5, Article VIII Overlay Zones and Historic Preservation (Exhibit 3).

Due to changes to State law, many components of the AHOZ are no longer compliant with State law. Additionally, the AHOZ only applied to a single parcel in the Town, located at 110 Knowles Avenue. Therefore, staff expects to remove item #2 of Implementation Program BF. The application of the HEOZ to the remaining AHOZ parcel will provide greater flexibility in order to create more potential for the development of housing. All other components of Implementation Program BF will be completed at a later date. Application of the HEOZ to the sites in the Sites Inventory will be considered in a separate zoning amendment application, item 5 on tonight’s Planning Commission agenda.

In response to public comments received since the July 20, 2023, GPC meeting regarding adding sites to the current Sites Inventory, staff is recommending the following

PAGE 6 of 8
SUBJECT: General Plan Amendment and Housing Element Overlay Zone/Z-23-002 and GP23-002 DATE: August 18, 2023
DISCUSSION (continued):
modifications shown in underlined text to Table 1A (HEOZ Development Standards), shown below to reflect the possibility of adding sites to the Sites Inventory in the future as sites on the current inventory are developed (Exhibit 3).

Table 1A (HEOZ Development Standards)
General Plan
Land Use
Designation
Zoning Minimum Yards Maximum
Lot
Coverage
Maximum
Floor Area
Ratio (FAR)
Maximum
Height
Limit (ft)
Density
Units Per Acre
Low Density
Residential
R-1 As authorized by
Section 29.40.405
50% N/A 30 feet 0-5
Medium Density
Residential
R-1D, R-D,
and R-M
As authorized by
Section 29.40.405,

29.40.530, and

29.40.645
75% N/A 35 feet 14-22 or 5-12
in Very High
Fire Hazard
Severity Zones
High Density
Residential
R-M As authorized by
Section 29.40.645
75% N/A 45 feet 30-40
Mixed-Use CH As authorized by
Section 29.60.435
N/A 3.0 45 feet 30-40
Neighborhood
Commercial
C-1 As authorized by
Section 29.60.225
N/A 1.0 35 feet 10-20
Central Business
District
C-2 As authorized by
Section 29.60.335
N/A 2.0 45 feet 20-30
North Forty
Specific Plan
NF-SP As defined in
Specific Plan
As defined
in Specific
Plan
As defined
in Specific
Plan
As defined
in Specific
Plan
As defined in
Specific Plan
Office
Professional
O As authorized by
Section 29.60.100
N/A 1.0 35 feet 10-20
Service
Commercial
LM As authorized by
Section 29.70.125
N/A 1.0 35 feet none
Light Industrial CM As authorized by
Section 29.70.235
N/A 1.0 35 feet none
PUBLIC COMMENTS:

Public notification has included a legal ad in the paper. The meeting has been publicized on the Town’s website and through the Town’s social media platforms. As of the drafting of this report, no comments from the public have been received.

PAGE 7 of 8
SUBJECT: General Plan Amendment and Housing Element Overlay Zone/Z-23-002 and GP23-002 DATE: August 18, 2023
CONCLUSION:

A. Summary
A request for approval of the following General Plan Amendment and Zone Changes:

1. Approval of a request to amend the 2020 General Plan Land Use Element to include a description of the Housing Element Overlay Zone; and

2. Approval of a request to amend the Town Code to modify the Affordable Housing Overlay Zone of Division 5, Article VIII Overlay Zones and Historic Preservation to be the Housing Element Overlay Zone.

B. Recommendation
Based on the analysis above, staff recommends that the Planning Commission consider the General Plan amendment and Zoning amendments and forward a recommendation for approval of the amendments to the Town Council. If the Planning Commission finds merit with the proposed amendments, it should:

1. Make the finding that no further environmental analysis is required (Exhibit 1);

2. Make the required finding that the General Plan amendments are internally consistent with the existing goals and policies of the General Plan and its elements, in that the amendments will provide for the development of housing for the sites in the Sites Inventory to comply with the Town’s RHNA (Exhibit 1);

3. Make the required finding that the proposed amendments to the Zoning Code is consistent with the General Plan and its elements in that the Zoning Code amendment is consistent with the proposed General Plan Land Use elements (Exhibit 1); and

4. Forward a recommendation of approval of General Plan Amendment application GP-23-002 and Zone Change application Z-23-002 to the Town Council.

C. Alternatives
Alternatively, the Planning Commission can:

1. Continue the matter to a date certain with specific direction;

2. Provide a recommendation for denial to the Town Council providing findings for denial.

PAGE 8 of 8
SUBJECT: General Plan Amendment and Housing Element Overlay Zone/Z-23-002 and GP23-002 DATE: August 18, 2023
EXHIBITS:

1. Draft Findings

2. Draft General Plan Amendment

3. Draft Zoning Code Ordinance Amendments, Division 5. Housing Element Overlay Zone

PLANNING COMMISSION – August 23, 2023

REQUIRED FINDINGS
General Plan Amendment Application GP-23-002
Zone Change Application Z-23-002
Forward a Recommendation to the Town Council for a Request Amend the General Plan to Include a Description of the Housing Element Overlay Zone and Amend the Town Code to Modify the Affordable Housing Overlay Zone Division 5 of Article VIII Overlay Zones and Historic Preservation to be the Housing Element Overlay Zone as Division 5 of Article VIII Overlay Zones and Historic Preservation. An Environmental Impact Report (EIR) was prepared and certified for the 2040 General Plan Update on June 30, 2022, which included the proposed General Plan Amendments. No Further Environmental Analysis is Required. Zoning Code Amendment Application Z-23-002 and General Plan Amendment Application GP-23-002. Project Location: Town Wide.

Applicant: Town of Los Gatos.

FINDINGS:

Required finding for CEQA:
▪ An EIR was prepared and certified for the 2040 General Plan Update on June 30, 2022, which included the proposed General Plan Amendments. No further environmental analysis is required.

Required consistency with the Town’s General Plan:
▪ That the General Plan amendment is internally consistent with the existing goals and policies of the General Plan and its corresponding elements, in that the amendments will provide for the development of housing for the sites in the Site Inventory to comply with the Town’s Regional Housing Needs Allocation.
▪ That the proposed amendments to the Zoning Code are consistent with the General Plan and its Elements in that the Zoning Code amendment is consistent with the proposed General Plan land use designations.

EXHIBIT 1
S:\PLANNING COMMISSION REPORTS\2023\08-23-2023\Item 4 - HEOZ & GP Amendments\Exhibit 1 - Draft Findings.docx

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Intentionally
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LU-1
3 LAND USE ELEMENT
A. Introduction
Los Gatos is a mature, predominantly built-out community. While there is little room for growth or change in the physical environment, land use is dynamic and change is constant from within and outside the community.

Managing change in an effort to maintain our quality of life is a priority of this General Plan and the Community.

The Land Use Element is the framework of the General Plan and is intended to inform and shape the future physical development of Los Gatos. This Element sets forth the patterns of development activity and land uses that will support and enhance the character of the Town. Although all General Plan Elements are of equal importance, the Land Use Element is the most frequently used and referenced section of the General Plan.

Planning for neighborhood preservation and protection is one of the most important purposes of the Town’s General Plan. Preserving the small-town heritage, natural setting, and architectural diversity are also important to this community. One of Los Gatos’s most outstanding assets is the visual diversity of its individual neighborhoods. Existing development represents a variety of architectural styles from various eras, embodying a variety of sizes, design features, and building materials, resulting in neighborhoods with their own unique identity. For example, Downtown Los Gatos is the historic heart of Town with a pedestrian-scale setting of mixed land uses and architecturally historic buildings. It is a unique area that sets the spirit and style of the entire Town.

Maintaining neighborhood quality suggests conservation of existing housing, good street design, traffic control in residential neighborhoods, and development review that adheres to quality design. Factors such as new or excessive traffic, aging or inadequate infrastructure, and even economic pressures may cause disruption of neighborhoods. Neighborhood preservation also includes balancing the intensity of land uses with the existing residential density.

EXHIBIT 2 Page 128

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Los Gatos also focuses on maintaining a “full-service” town that provides a range of goods and services that support the economic vitality of the Town. The commercial centers of Los Gatos are therefore also important to the community.

Under the Los Gatos Boulevard Plan, the community expressed interest in creating a shopping experience and destination that complements but does not compete with the Downtown.

Residential and non-residential uses produce different impacts on the community. The impacts on traffic, noise, schools, open space, and other qualityof-life issues will vary, depending on the final mixture of residential and nonresidential uses approved within the area. The overall planning for the area needs to limit the adverse impacts on the quality of life of all of the residents of Los Gatos and to provide for open space.

The Land Use Element describes land use designations, special planning areas, and existing land uses in Los Gatos. The Land Use Element is divided into the following sections:
 Introduction: A description of the requirements and contents of the Land Use Element.
 Existing Land Uses: A description of existing land uses in Los Gatos.  General Plan Land Use Designations: A description of the characteristics and intensity of the different land use designations in Los Gatos, including a map identifying the location of these land use designations.
 Special Planning Areas: A description of special planning areas, including Historic Districts and Specific Plan Overlays.
 Goals, Policies, and Actions: A list of goal, policy, and action statements that provide guidance to Los Gatos on land use decisions.

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B. Authority for the Element
California Government Code Section 65302(a) and Public Resources Code Section 2762(a) require that the Land Use Element provide the following information:
 Distribution, location, and extent of land uses for categories of public or private uses. Such categories include, but are not limited to housing, business, industry, open space, natural resources, recreation and enjoyment of scenic beauty, education, and public buildings and grounds.  Population density and building intensity standards for land use designations.

The Land Use Element has the broadest scope of any of the State-required components of the General Plan. In addition to the State’s requirements set forth in the Government Code, it has also been legally established that, while the location of a particular land use may be expressed in general terms, a property owner must be able to identify the General Plan Land Use Designation for his/her parcel from the land use diagram contained in the Land Use Element.

Among the important implementation mechanisms for the Land Use Element are Specific Plans and the Town Code. The California Government Code requires that the Town Code and zoning map be consistent with its General Plan Land Use Element and land use map, and that all provisions of Specific Plans adopted by the Town must be consistent with the General Plan that they implement.

C. Relationship of Land Use Element to other Elements and Plans Because the Land Use Element sets the framework of the General Plan, the Land Use Element relates directly to all goals and policies of the other Elements and unifies the General Plan by providing the overall policy context for the other Elements. The relationship of the Land Use Element to other elements and plans is described below.

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 The Land Use Element addresses circulation by setting out, in its map and policies, the location and size of all roadways in the Town coordinated with the land uses the roads will serve. It also notes the planned capacities of all other infrastructure systemsthat will be necessary to protect the health and welfare of the Town’s citizens.  The location, type, and density of residential units are key components of the Land Use Element. The Housing Element uses the density ranges specified in the Land Use Element to identify sites to meet the Town’s housing needs.
 The mandates of the Safety Element are reflected in the designation and location of land use, the permitted activities within designated areas, and the patterns of land use that support defensible space, the Town’s contingency plan, and fire and other hazard mitigation.
 The Land Use Element addresses buffers between noise sensitive uses and noise sources.
 The Town conserves resources through policies for the wise use of land, water, and energy.
 Air quality is improved by land use patterns that minimize vehicle travel within the Town.
 The Conservation Element goals address protecting and enhancing the natural environment. Programs that retain natural features such as tree preservation, limited grading, and water conservation maintain the natural character of Los Gatos.
 The Open Space Element refers to the location, character, and use of parks, recreational facilities, and preserved, unimproved land.  Land use designations protect and preserve open spaces.  The Land Use Element reflects the Town’s high priority for quality design.

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LU-5
 The Land Use and Community Design Elements preserve historical buildings and historic areas, limiting the size of houses, while careful de- sign of new infill developments protects the character of Los Gatos.  California State law requires that all Specific Plans and zoning regulations be consistent with the General Plan. The Hillside Specific Plan, the North Forty Specific Plan, the Redevelopment Plan, and other plans that may be adopted as necessary will be consistent with this General Plan.

D. Existing Land Uses
This section contains qualitative and quantitative descriptions of existing land uses in the Town of Los Gatos and Los Gatos’s Sphere of Influence (SOI). “Existing land uses” refers to the existing built environment, regardless of the General Plan land use designation or zoning designation applied by the Town. This initial assessment is based on data from the Santa Clara County Office of the Assessor. Existing land uses are illustrated in Figure LU-1 and listed in Table LU-1.

1. Residential – Single Family
Approximately 3,183 acres of land in Los Gatos are dedicated to parcels that contain a single, detached residence and related structures. Single-family residential land use is located throughout the Town, with the exception of the public and open spaces in the southern area of the Town and along commercial corridors immediately adjacent to Los Gatos Boulevard and Santa Cruz Avenue. In the SOI, approximately 2,728 acres of land are dedicated to single-family residential land.

2. Residential – Multi-Family
This land use category refers to parcels that contain more than one housing unit. It includes duplexes, triplexes, fourplexes, condominiums, and apartment buildings. This residential land use totals approximately 407 acres in the Town. There is no multi-family housing in the SOI. Multi-family uses are largely clustered in and around the Highway 17 corridor, either between

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City of
Saratoga
City of
Campbell
·|}þ1 7
CURTNER AVENUE Town Boundary
Sphere of Influence
Water Body
Highway
Creek
City of
Monte Sereno
Vasona Lake
County Park
·|}þ8 5

LOS GATOS-ALMADEN ROAD

BLOSSOM HILL ROAD
City of
San Jose
Lexington
Reservoir
Unincorporated
Santa Clara County
0 0.5 1 Miles
Source: Santa Clara County Office of the Assessor, 2006; DC&E, 2008.

Existing Land Use
Single Family Residential
Multi-Family Residential
Commercial
Office/Professional
Light Industrial
Public Utilities
Public/Quasi-Public
Agricultural
Open Space/Recreation
Vacant
F I G U R E LU - 1

EX I S TI NG L A N D USE

UNION AVENUE

HARWOOD ROAD

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LU-7
TABLE LU-1 EXISTING LAND USES
Land Use Category
Number of
Acres
Percent
of Town
Acreage
Percent
of SOI
Acreage
Residential – Single Family 5,911 51.2% 51.9%
Residential – Multi-Family 407 6.5% 0%
Commercial 164 2.6% 0%
Office Professional 126 2% 0%
Light Industrial 37 0.6% 0%
Public/Quasi-Public 440 4.7% 2.8%
Public Utilities 39 0.5% 0.1%
Agricultural 112 1% 1%
Open Space/Recreation 3,841 26.2% 42.2%
Vacant 399 4.7% 2%
Total 11,476 100% 100%
Source: County of Santa Clara, Office of the Assessor, 2006.

Los Gatos Boulevard and Highway 17 or in the area south of Vasona Lake County Park. A significant pocket of multi-family housing is also located in the northwest corner of the Town, just south of the City of Campbell.

3. Commercial
Commercial land refers to parcels that contain either retail businesses—those offering specific products for sale—or businesses that provide day-to-day services such as grocery stores, restaurants, spas and salons, dry cleaners, and nurseries. There are approximately 164 acres of commercial uses in Los Gatos and 1 acre in the SOI. Most commercial parcels in Los Gatos are located along the Santa Cruz Avenue or Los Gatos Boulevard corridors.

LU-8

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4. Office Professional
Office Professional land use refers to parcels that contain offices for medical, legal, insurance, consulting, and similar contracted services. Office and professional uses account for 125 acres in Los Gatos. Like commercial parcels, office professional parcels are concentrated along the Town’s primary commercial corridors. An additional cluster of office and professional uses is located near the Highway 17/85 interchange.

5. Light Industrial
The Light Industrial land use category refers to parcels used primarily for production, manufacturing, and research and development. Additional uses include self-storage and automobile service garages. There are approximately 37 acres of light industrial land uses in Los Gatos. Light industrial uses are concentrated in two small pockets, one just south of Highway 85 and east of Winchester Boulevard, and another along University Avenue, north of Blossom Hill Road.

6. Public/Quasi-Public
Public/Quasi-Public land uses include schools, libraries, police and fire stations, faith communities, and hospitals. These uses are distributed through- out Los Gatos, mostly in single parcels or small groups of parcels. Public/Quasi-Public land uses comprise approximately 291 acres of land in the Town and approximately 149 acres in the SOI.

7. Public Utilities
Public Utilities refer to uses related to communications and energy production and distribution. There are approximately 37 acres in the Town devoted to utilities divided between parcels scattered throughout Los Gatos. Many of these parcels are owned by San Jose Water Company and PG&E and are sites of communications infrastructure.

8. Agricultural
Agricultural land is used for raising and harvesting crops, breeding livestock, and/or housing equipment used for agricultural purposes. According to the Santa Clara County Assessor’s Office, about 64 acres of land scattered

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LU-9
throughout Los Gatos, and approximately 48 acres in the SOI, are devoted to existing agricultural uses. One of the largest areas of agricultural land is the North Forty site, which contains orchard trees, including walnut and fruit trees. Wine grapes can be found in the Santa Cruz Mountains hillside areas.

The California Land Conservation Act of 1965, better known as the Williamson Act, works to preserve agricultural and open space lands through restrictive use contracts administered by counties and cities under State regulations. Private landowners voluntarily restrict their land to agricultural and compatible open space uses under minimum 10-year rolling term contracts, with counties and cities also acting voluntarily. In return, the property tax on a Williamson Act parcel is assessed at a rate consistent with its actual use, rather than potential market value.

Figure LU-2 shows the location of all Williamson Act lands and their designation as well as farmland not covered by the Williamson Act.

Approximately 136 acres of land within the Town limits and 358 acres of land within the SOI are designated Williamson Act land.1 Of these, only 3.85 acres are considered “prime agricultural lands” under the definition of the Land Conservation Act. All of these lands occur in the Town’s SOI. In addition to Williamson Act lands, approximately 32 acres of Unique Farmland are located within Town limits and 8 acres within the SOI. “Unique Farmland” is a designation ap- plied by the State Department of Conservation to land that is capable of producing specific high value crops. In Los Gatos, it is applied to the orchards on the North Forty site.

9. Open Space/Recreation
Open Space/Recreation refers to indoor and outdoor recreational facilities, including public open spaces such as regional parks, community centers, 1 This number is higher than the number of acres in existing Agricultural use because Williamson Act include parcels that are classified by the Assessor as Agriculture, Open Space, and Single Family Residential. Single Family Residential may be considered an acceptable classification by the Assessor since Williamson Act contracts may include provisions for a limited number of dwelling units on the property.

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City of
Campbell
CURTNER AVENUE Town Boundary
Sphere of Influence
Water Body
Creek
City of
Saratoga ·|}þ1 7
City of
Monte Sereno
Vasona Lake
County Park
·|}þ8 5

LOS GATOS-ALMADEN ROAD

BLOSSOM HILL ROAD
City of
San Jose
Lexington
Reservoir
Unincorporated
Santa Clara County
0 0.5 1 Miles
Source: State of California Department of Conservation 2006.

Williamson Act Lands
Prime Agricultural Land
Non-Prime Agricultural Land
Non-Prime/Non-Renewal Agricultural Land
State Farmland Designation

Unique Farmland
F I G U R E LU - 2

W I L L I A M S O N A C T AND U N I Q U E F A R M LAND UNION AVENUE HARWOOD ROAD

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playgrounds and neighborhood parks, country clubs, and natural open spaces.

After Residential – Single Family land use, Open Space/Recreation comprises the second highest percentage of total land in Los Gatos. There are approximately 1,624 acres of open space in the Town and approximately 2,218 acres in the SOI. Much of this acreage is contained in four large facilities: St.

Joseph’s Hill and Sierra Azul Open Space to the south of Los Gatos, and Vasona Lake County Park and La Rinconada Country Club to the north.

10. Vacant
Approximately 292 acres within the Town are vacant parcels of varying sizes that are scattered throughout the Town. Most of the vacant acreage in Los Gatos is located in the single-family residential area on the eastern side of the Town. Parcels here are generally larger than they are elsewhere in Los Gatos, and a number of significantly sized parcels are vacant. Generally, vacancies are more common in residential areas of Los Gatos than in commercial areas, although a few small, isolated commercial vacancies exist. Additionally, the SOI contains approximately 107 acres of vacant property.

E. General Plan Land Use Designations
The Land Use Element is the basis for physical development in Los Gatos. The land use map and designations identify the general location, density, and extent of land available for residential and non-residential uses. Land use designations do not necessarily reflect the existing land use of each parcel. Figure LU-3 presents a map of the land use designations in Los Gatos. Each land use designation is listed and described below.

1. Residential Land Use Designations
This section provides a brief description of each residential land use designation and the desirable range of density for each designation.

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City of
Saratoga
City of
Campbell
·|}þ1 7
CURTNER AVENUE Town Boundary
Sphere of Influence
Water Body
Highway
Creek
City of
Monte Sereno
Vasona Lake
County Park
·|}þ8 5

LOS GATOS-ALMADEN ROAD

BLOSSOM HILL ROAD
City of
San Jose
Lexington
Reservoir
Unincorporated
Santa Clara County
0 0.5 1 Miles
Source: Town of Los Gatos, 2008; Santa Clara County Office of the Assessor, 2008.

General Plan Land Use
Hillside Residential
Low Density Residential
Medium Density Residential
High Density Residential
Mixed-Use Commercial
Central Business District
Neighborhood Commercial
Service Commercial
Office Professional
Light Industrial
Public
Agriculture
Open Space
North Forty Specific Plan Overlay
F I G U R E LU - 3
2020 G ENERAL

PLAN LAND USE

UNION AVENUE

HARWOOD ROAD

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a. Hillside Residential: 0-1 dwelling units per net acre Up to 3.5 persons per acre
The Hillside Residential designation provides for very low density, rural, large lot or cluster, single-family residential development. This designation allows for development that is compatible with the unique mountainous terrain and vegetation of parts of Los Gatos.
b. Low Density Residential: 0-5 dwelling units per net acre Up to 17.5 persons per acre
The Low Density Residential designation provides for single-family residential properties located on generally level terrain. It encourages single-family residential development in either the standard development established by traditional zoning or by innovative forms obtained through planned development.
c. Medium Density Residential: 5-12 dwelling units per net acre Up to 24 persons per acre
The Medium Density Residential designation provides for multiple-family residential, duplex, and/or small single-family homes.
d. High Density Residential: 12-20 dwellings per net acre Up to 40 persons per acre
The High Density Residential designation provides for more intensive multifamily residential development. Its objective is to provide quality housing in close proximity to transit or a business area.
e. Mobile Home Park: 5-12 dwellings per net acre
Up to 24 persons per acre
The Mobile Home Park designation provides for mobile home parks. The intent is to provide and preserve Mobile Home Parks as a source of affordable housing. This designation is described in this Element; however, it is not represented on the accompanying General Plan Land Use Map.

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2. Non-Residential Land Use Designations
For non-residential land uses, the specific uses mentioned are illustrative, and other compatible uses, including those authorized in any other Zoning District within the Town, may be permitted where authorized by a Conditional Use Permit or Planned Development Overlay Zone. In a mixed-use project residential uses may be permitted in conjunction with other permitted uses in non-residential Zoning Districts with the exception of the Commercial Indus- trial and Controlled Manufacturing Zoning Districts. For non-residential land uses, building intensity limits are indicated by either allowable land coverage or floor area ratio(FAR) and a maximum height limit.
 Office Professional: Up to 50 percent land coverage with a 35-foot height limit The Office Professional designation provides for professional and general business offices. This designation applies to various locations throughout the Town, often in close proximity to neighborhood- or community-oriented commercial facilities, or as a buffer between commercial and residential uses.

The intent of this designation is to satisfy the community’s need for general business and professional services and local employment.  Central Business District: 0.6 FAR with a 45-foot height limit The Central Business District designation applies exclusively to the down- town and accomplishes the following:
 Encourages a mixture of community-oriented commercial goods, services and lodging unique in its accommodation of small-town style merchants and maintenance of small-town character.
 Maintains and expands landscaped open spaces and mature tree growth without increasing setbacks.
 Integrates new construction with existing structures of historical or architectural significance and emphasizes the importance of the pedestrian.  Mixed-Use Commercial: Up to 50 percent land coverage with a 35-foot height limit
The Mixed-Use Commercial designation permits a mixture of retail, office, and residential in a mixed-use project, along with lodging, service, auto-related businesses, non-manufacturing industrial uses, recreational uses, and restaurants

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Projects developed under this designation shall maintain the small- town, residential scale and natural environments of adjacent residential neighborhoods, as well as provide prime orientation to arterial street frontages and proper transitions and buffers to adjacent residential properties. This designation should never be interpreted to allow development of independent commercial facilities with principal frontage on the side streets. d. Neighborhood Commercial: Up to 50 percent land coverage with a 35- foot height limit
The Neighborhood Commercial designation provides for necessary day-today commercial goods and services required by the residents of the adjacent neighborhoods. This designation encourages concentrated and coordinated commercial development at easily accessible locations.
e. Service Commercial: Up to 50 percent land coverage with a 35-foot height limit
The Service Commercial designation provides for service businesses necessary for the conduct of households or businesses. These include auto repair, building materials sales, paint suppliers, janitorial services, towing businesses, contractors offices and yards, launderers and dry cleaners, as well as wholesaling and warehousing activities.
f. Light Industrial: Up to 50 percent land coverage with a 35-foot height limit
The Light Industrial designation provides for large-scale office developments and well-controlled research and development, industrial-park-type and ser- viceoriented uses subject to rigid development standards. These uses should respond to community or region-wide needs.
g. Public
The Public designation identifies public facilities in the Town such as the Civic Center, courthouse, schools, parks, libraries, hospitals, churches, and fire stations.

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h. Agriculture
The Agricultural designation identifies areas for commercial agricultural crop production.
i. Open Space
The Open Space designation identifies the location of public parks, open space preserves, private preserves, and stream corridors.

F. Special Planning Areas
Development in Los Gatos can be targeted to achieve a more specific outcome by designating specific overlay zones and special planning areas. These areas have more detailed development guidelines that remain consistent with existing policies. Los Gatos has three overlay zones that implement land use policies through the Town Code, five Historic Districts, three Specific Plans, and one Redevelopment Project Area.

1. Overlay Zones
There are three overlay zones in the Town Code, the Landmark and Historic Preservation, Planned Development, and Public School Overlay Zones.  Landmark and Historic Preservation (LHP) Overlay Zone. This zone is designated by Town Council and is applied to individual sites and structures or small areas deemed of architectural and/or historical significance. The structure(s) in LHP overlays are subject to special standards regarding their appearance, use, and maintenance.
 Planned Development (PD) Overlay Zone. The PD overlay zone is intended to ensure orderly planning and quality design that will be in harmony with the existing or potential development of the surrounding neighborhood. The Planned Development Overlay is a specially tailored development plan and ordinance which designates the zoning regulations for the accompanying project, sets specific development standards, and ensures that zoning and the General Plan are consistent. Commercial,

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residential or industrial property or a mixture of these uses may be considered for a Planned Development Overlay.
 Public School (PS) Overlay Zone. The PS overlay zone is intended to allow school buildings to be used, without extensive exterior modifications, in ways which will make it unnecessary to sell school facilities. The overlay permits a variety of community-related and education- related uses, including, but not limited to, museums, community centers, playgrounds, and nursery schools. Any land owned by a public school district (regardless of underlying zone) may be zoned PS.
 Housing Element Overlay Zone (HEOZ). The HEOZ is intended to increase the supply and the mix of housing types, tenure, and affordability within the Town of Los Gatos. Through appropriate densities, the housing element overlay zone encourages the development of housing affordable to all income levels as described in the 2023-2031 Housing Element Sites Inventory to comply with the Town’s Regional Housing Needs Allocation (RHNA) for the sixth cycle Planning period and listed in Table LU-2.

TABLE LU-2 HEOZ Development Standards
Designation Standards
Low Density Residential Density: 0 – 5 du/ac
Lot Coverage: Up to 50%
Max. Height: 30 feet
Medium Density Residential Density: 14 – 22 du/ac
Density in Very High Fire Hazard
Severity Zones: 5 – 12 du/ac
Lot Coverage: Up to 75%
Max. Height: 35 feet
High Density Residential Density: 30 – 40 du/ac
Lot Coverage: Up to 75%
Max. Height: 45 feet
Mixed-Use Density: 30 – 40 du/ac
FAR: Up to 3.0
Max. Height: 45 feet
Neighborhood Commercial Density: 10 – 20 du/ac
FAR: Up to 1.0
Max. Height: 35 feet
Central Business District Density: 20 – 30 du/ac
FAR: Up to 2.0
Max. Height: 45 feet
North Forty Specific Plan As defined in Specific Plan

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Office Professional Density: 10 – 20 du/ac
FAR: Up to 1.0
Max. Height: 35 feet
Service Commercial Density: none
FAR: Up to 1.0
Max. Height: 35 feet
Light Industrial Density: none
FAR: Up to 1.0
Max. Height: 35 feet

2. Historic Districts
The Town has established five historic districts to preserve neighborhoods deemed significant to the history of Los Gatos.
 Almond Grove Historic District. An approximately 40-acre area that constitutes the largest subdivision following incorporation of the Town of Los Gatos. This District was established by ordinance in 1980.  Broadway Historic District. An approximately 100-acre area that is the site of the first residential subdivision and first residential street in the Town of Los Gatos. This District was established by ordinance in 1985.  Los Gatos Historic Commercial District. Bounded by Elm Street to the north, Main Street to the south, Los Gatos Creek to the east, and North Santa Cruz Avenue to the west. The Town’s only concentration of intact historic commercial buildings. It was established by ordinance in 1991.
 Fairview Plaza Historic District. Limited to the cul-de-sac termination of Fairview Plaza, part of an historic subdivision originally surveyed in 1885 known as the “Fairview Addition.” The District retains the same configuration as originally mapped and contains a rare collection of Victorian and Craftsman homes, unique in their compact scale and proximity to one another. This District was established by ordinance in 1992.  University/Edelen Historic District. Bounded by Saratoga Avenue to the north, Main Street to the south, Los Gatos Creek to the east, and the former Southern Pacific Railroad right-of-way to the west. The District is composed of five subdivisions that predate 1900 and contain a number of residential and commercial structures of mixed architectural styles. This District was established by ordinance in 1991. All of Los Gatos’s historic districts are defined by structures that contribute to the District. In every District, the transformation of these structures is tightly regulated.

Demolition of contributing structures is strictly prohibited. In addition, all restoration, rehabilitation, and new construction of principal units must adhere to a series of guidelines for preserving architectural heritage and conforming to existing style. Any modifications to the original design are either restricted or prohibited.

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3. Overlay Designation
The North Forty Specific Plan Overlay is applied to the approximately 40-acre property bounded by Los Gatos Boulevard to the east, Highway 17 to the west, Lark Avenue to the south, and Highway 85 to the North. This Overlay requires the preparation and adoption of a specific plan that will determine the mix of uses, dimensional standards, architectural standards, phasing, and infrastructure to support the development of the property prior to approval of any entitlements. Drawing on the draft North Forty Specific Plan prepared in 1999, the General Plan overlay designation is intended to help guide the future development of this property. The 2020 General Plan Environmental Impact Report assumed a maximum capacity of 750 mixed residential units and 580,000 square feet of retail and offices uses for the purposes of assessing environmental impacts associated with the development of the property. While this is the maximum development capacity under this General Plan, the specific plan may be approved with lower densities and square footage of residential and commercial uses, respectively. The North Forty Specific Pan will be based on the following general guidelines:
 Include a mixture of uses that will complement the Downtown and the rest of the community.
 Be based on sustainable and “smart” development practices.

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 Include public gathering spaces such as a plaza and park.  Provide for a variety of residential housing types, both rental- and owneroccupied. A minimum of 20 percent of the units shall be affordable to households at the moderate income level or below.
 Include high-quality architecture and design that reflects the rural and agricultural history of the site.
 Provide pedestrian-oriented buildings along the Los Gatos Boulevard frontage, with minimal parking oriented to the street.
 Take advantage of the grade change across the site.
 Continue the “boulevard treatment” along Los Gatos Boulevard, with interconnections from one parcel’s drive aisle to the next.  Include connections to existing intersections along Los Gatos Boulevard and Lark Avenue.
 Develop gateway or landmark features at Los Gatos Boulevard and Lark Avenue and at Los Gatos Boulevard and the Highway 85 off-ramp.  Provide an easily accessible, fully connected street network that encourages walking.
 Provide a vegetative buffer and screening along Highways 17 and 85.  Preserve Town character and views.

4. Other Plans
The Hillside Specific Plan and Los Gatos Boulevard Plan areas are each developed according to separate land use goals and in different areas of the Town. In addition to these approved Specific Plans, the Town will be developing a North Forty Specific Plan.
a. Hillside Specific Plan
The Hillside Specific Plan establishes land use policy for the Hillside Study Area, an area of mountainous terrain in the southeastern portion of the Town designated for Hillside Residential development. Adopted by Town Council in 1978, the Specific Plan establishes a series of policies and standards related

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to land use, facilities, services, circulation, fire protection, safety, and open space.

These policies and standards are intended to prevent deficiencies in access to water and sewer services, ensure conservation of the sensitive natural environment, and address differences in Town and County land use regulations.

Development in the Hillside Specific Plan area is prohibited outside of designated “least restrictive development areas” (LRDAs) unless it is compliant with conditions established in the Plan.
b. Los Gatos Boulevard Plan
Adopted by Town Council in 1997, the Los Gatos Boulevard Specific Plan is a policy framework for meeting a series of short, medium, and long range goals related to the commercial revitalization of Los Gatos Boulevard. This Specific Plan is based on a land use concept for which higher density, mixeduse commercial development in the north of the Specific Plan area transitions into residential and community clusters, and then into existing residential neighborhoods just south of the Specific Plan area. This Specific Plan contains policies and design standards targeting safe, attractive public improvements; pedestrian-oriented activity nodes; vital, commercial land use; distinct gateways, and site-appropriate private improvements. c. Central Los Gatos Redevelopment Project
The Central Los Gatos Redevelopment Project, which focuses on an area located around Downtown Los Gatos, contains a mix of residential and non- residential land use designations. The Town of Los Gatos Redevelopment Agency has the authority to facilitate property acquisition and management, construction of public improvements, structural rehabilitation, and site assembly within the Project Area. The project was adopted in 1991, following the 1989 Loma Prieta earthquake. The main objectives of the project are to eliminate blight, assemble land parcels for improved development, strengthen the economic base of downtown, and improve undeveloped and underutilized areas.

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G. Goals, Policies, and Actions
The following goals, policies, and actions guide future physical development throughout Los Gatos.

Policy LU-1.1 Encourage developers to engage in discussions as early as possible regarding the nature and scope of the project and possible impacts and mitigation requirements.

Policy LU-1.2 Ensure that new development preserves and promotes existing commercial centers consistent with the maintenance of a small-scale, small-town atmosphere and image.

Policy LU-1.3 To preserve existing trees, natural vegetation, natural topography, riparian corridors and wildlife habitats,
and promote high quality, well-designed, environmentally sensitive, and diverse landscaping in new and existing
developments.

Policy LU-1.4 Infill projects shall be designed in context with the neighborhood and surrounding zoning with respect to the existing scale and character of surrounding structures, and should blend rather than compete with the established
character of the area.

Policy LU-1.5 Encourage private/public funding, development, and operation of cultural amenities, activities, and centers consistent with the small-town character of Los Gatos.

Goal LU-1 To preserve, promote, and protect the existing small-town character and quality of life within Los
Gatos.

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Policy LU-1.6 Recognizing that our ability to preserve our small-town character is somewhat dependent on decisions in surrounding communities, continue and expand Town participation in planning processes in neighboring
jurisdictions and regional bodies in order to develop
innovative, effective, and coordinated land use,
transportation, and hillside development plans and
standards that will help preserve our small-town character.

Policy LU-1.7 Use task forces, ad hoc committees and other means as appropriate to involve residential and commercial interests in Town matters.

Policy LU-1.8 Commercial development of any type (office, retail, research and development, etc.) shall be designed in keeping with the small-town character of Los Gatos.

Policies
Policy LU-2.1 Minimize vehicle miles traveled for goods and services by allowing and encouraging stores that provide these goods within walking distance of neighborhoods in Los Gatos.

Policy LU-2.2 Promote telecommuting and home-based businesses by allowing live-work and work-live uses in existing and future residential development.

Goal LU-2 To maintain a balanced, economically stable community within environmental goals.

Goal LU-3 To coordinate with surrounding jurisdictions and other local and regional agencies that may affect Los
Gatos’s future development patterns and character.