Scotts Valley City Council
May 1, 2024

AGENDA
Meeting of the
Scotts Valley City Council
In-Person and Remote Access
Date: May 1, 2024
Time: 6:00 PM

CONTACT

INFORMATION

MEETING LOCATION POSTING
City of Scotts Valley
1 Civic Center Drive
Scotts Valley, CA 95066
(831) 440-5600
City Council Chambers
1 Civic Center Drive
Scotts Valley, CA 95066
OR
Zoom Video Conference
https://us02web.zoom.us/j/83295730901
Agenda posted on 4-26-
2024 at City Hall, SV
Senior Center, SV Public
Works Building, and on the
Internet
at: www.scottsvalley.gov

ELECTED OFFICIALS CITY STAFF MEMBERS
Randy Johnson, Mayor
Derek Timm, Vice Mayor
Jack Dilles, Council Member
Donna Lind, Council Member
Allan Timms, Council Member
Mali LaGoe, City Manager
Kirsten Powell, City Attorney
Taylor Bateman, Community Development
Director
Jayson Rutherford, Police Captain
Cathie Simonovich, City Clerk

MEETING NOTICE AND AGENDA PACKET MATERIALS
Notice regarding City Council Meetings:

The City Council meets regularly on the 1st and 3rd Wednesday of each month at 6:00 PM in the City Hall Council Chambers located at 1 Civic Center Drive, Scotts Valley, CA 95066, and via Zoom Webinar remote access.

Agenda and Agenda Packet Materials:

The City Council agenda and the complete agenda packet are available for review by 5:00 PM the Friday before the Wednesday meeting on the Internet at the City’s website:
www.scottsvalley.gov and in the lobby of City Hall at 1 Civic Center Drive, Scotts Valley, CA.

Pursuant to Government Code §54957.5, materials related to an agenda item, submitted after distribution of the agenda packet, are available for public inspection in the lobby of City Hall during normal business hours, Monday-Friday, 8am-12 pm and 1-5 pm. In accordance with AB 1344, such documents will be posted on the City’s website at www.scottsvalley.gov.

Public Participation:

The meeting will be available on Zoom and livestreamed to the City of Scotts Valley’s YouTube channel: https://www.youtube.com/channel/UCLNTBScelB4wTfidYHrocWA For those wishing to participate via Zoom you can join the following ways:

Zoom Webinar meeting link: https://us02web.zoom.us/j/83295730901

City Council Meeting Agenda Page 2
Date: May 1, 2024
Or dial one of these numbers: (669) 900-9128 or (669) 444-9171 Webinar ID: 832 9573 0901
Whether attendance is in-person or remote, you will be given opportunities to provide public comment at the appropriate times throughout the meeting. The time limit is up to 3 minutes for an individual, or 5 minutes for someone who is representing a group of three or more, at the discretion of the Mayor. Please note that this is not a question-and-answer time, but simply a time to provide comments to the Council. At the appropriate times during the meeting for public comment, on items not on the agenda, and on specific agenda items, the Mayor will announce that public comment will be accepted.

How to comment via in-person attendance:

Please proceed to the public comment podium when the Mayor opens the item for public comment.

How to comment via Zoom Webinar:

Use the webinar attendee option to “raise hand” when the Mayor opens the item for public comment. The Clerk will unmute you when it is your turn. If you have joined via Zoom phone call, dial *9 or your phone to “raise your hand”, and the Clerk will unmute you when it is your turn.

CALL TO ORDER 6:00 PM
PLEDGE OF ALLEGIANCE and MOMENT OF SILENCE

ROLL CALL

SPECIAL SET MATTER

1. Mayor's Proclamation declaring May 4, 2024 as Multicultural Fair Day in the City of Scotts Valley

COMMITTEE REPORTS
Council members are appointed to committees which are either City committees or committees dealing with other jurisdictions. This portion of the agenda allows the committee member to present oral or written reports to the Council regarding their committee assignments. It also allows the Council to make comments and give the committee member direction, as required.

CITY MANAGER REPORT

PUBLIC COMMENT TIME

City Council Meeting Agenda Page 3
Date: May 1, 2024
This is the opportunity for individuals attending in person to make oral comments to the Council on any items within the purview of the Council, which are NOT part of the Agenda. No action on the item may be taken, but the Council may request the matter be placed on a future agenda. Written public comment may be emailed to the City Clerk by 5:00 PM on the day of the meeting at [email protected].

ALTERATIONS TO CONSENT AGENDA
Council can remove or add items to the Consent Agenda.

CONSENT AGENDA
The Consent Agenda is comprised of items which are intended to be non-controversial and are approved without discussion. Persons wishing to speak on any item may request the item be moved to the Regular Agenda by raising their hand to be recognized by the Mayor. An item will only be moved from the Consent Agenda to the Regular Agenda if a City Council Member requests it to be moved and a majority of the Council agrees.

1. Approve City Council minutes from the 04-17-2024 meeting

2. Approve check register dated 04-12-2024 through 04-25-2024

3. Consideration of Sanitary Sewer Connection Request; APN 067-103-17, 143 La Cuesta Drive

4. Investment Report for the Quarter Ended March 31, 2024

PUBLIC HEARINGS

1. Consideration of the Planning Commision's recommendation to amend Scotts Valley Municipal Code Title 16 (Subdivisions) and Title 17 (Zoning) to adopt a local ordinance implementing SB 9.

ALTERATIONS TO REGULAR AGENDA
Council can remove or add items to the Regular Agenda.

REGULAR AGENDA
Persons wishing to speak on any item may do so by raising their hand to be recognized by the Mayor.

1. AB 481 Military Equipment Use Annual Report and Ordinance Renewing the Military Use Policy

2. Future Council Agenda Items

City Council Meeting Agenda Page 4
Date: May 1, 2024

ADJOURNMENT

ADA NOTICE
The City of Scotts Valley does not discriminate against persons with disabilities. The City Council Chambers is an accessible facility. If you wish to attend a City Council meeting and require assistance such as sign language, a translator, or other special assistance or devices in order to attend and participate at the meeting, please call the City Clerk's office at (831) 440-5600 five to seven days in advance of the meeting to make arrangements for assistance. If you require the agenda of a City Council meeting be available in an alternative format consistent with a specific disability, please call the City Clerk’s Office. The California State Relay Service (TTY/VCO/HCO to Voice: English 1-800-735-2929, Spanish 1-800-855-3000; or, Voice to TTY/VCO/HCO:

English 1-800-735-2922, Spanish 1-800-855-3000), provides Telecommunications Devices for the Deaf and Disabled and will provide a link between the TDD caller and users of telephone equipment.

City Council Meeting Agenda Page 5
Date: May 1, 2024

PROCEDURAL INFORMATION FOR THE PUBLIC

THE FOLLOWING IS THE PROCEDURE COUNCIL SHOULD TAKE IN
APPROVAL OF A RESOLUTION:

1. Move the Resolution number for approval.

2. Second the motion.

3. Vote by body, a roll call vote is not required.

THE FOLLOWING IS THE PROCEDURE COUNCIL SHOULD TAKE IN
INTRODUCTION/ADOPTION OF AN ORDINANCE:

1. Move the Ordinance number for introduction (or adoption).

2. Move the Ordinance be introduced by title only and waive the reading of the text.

3. Read the Ordinance title.

4. Second the motion.

5. Vote by body, a roll call vote is not required.

THE FOLLOWING IS THE PROCEDURE COUNCIL SHOULD TAKE IN
PUBLIC COMMENT/PUBLIC HEARINGS:

Unless otherwise determined by the presiding officer of the meeting:

1. Three minutes allowed per individual to speak.

2. Five minutes allowed per individual representing a group of three or more. ❖❖❖❖❖❖❖❖
The City of Scotts Valley does not discriminate against persons with disabilities. The City Council Chambers is an accessible facility. If you wish to attend a City Council meeting and require assistance such as sign language, a translator, or other special assistance or devices in order to attend and participate at the meeting, please call the City Clerk's office at (831) 440-5602 five to seven days in advance of the meeting to make arrangements for assistance. If you require the agenda of a City Council meeting be available in an alternative format consistent with a specific disability, please call the City Clerk’s Office. The California State Relay Service (TTY/VCO/HCO to Voice: English 1-800-735-2929, Spanish 1-800-855-3000; Voice to TTY/VCO/HCO: English 1- 800-735-2922, Spanish 1-800-855-3000; or, from or to Speech-to-Speech, English & Spanish 1- 800-854-7787), provides Telecommunications Devices for the Deaf and Disabled and will provide a link between the TDD caller and users of telephone equipment.

CALL TO ORDER 6:00 PM
PLEDGE OF ALLEGIANCE and MOMENT OF SILENCE

ROLL CALL
CITY STAFF MEMBERS PRESENT:

Mali LaGoe, City Manager
Kirsten Powell, City Attorney
Stephanie Hill, Administrative Services Director
Jayson Rutherford, Police Captain
Scott Hamby, Public Works
Cathie Simonovich, City Clerk

ELECTED OFFICIALS
PRESENT:

Randy Johnson, Mayor
Derek Timm, Vice Mayor
Jack Dilles, Council Member
Donna Lind, Council Member
Allan Timms, Council Member

COMMITTEE REPORTS

MINUTES
Meeting of the
Scotts Valley City Council
Date: April 17, 2024
Time: 6:00 PM

CONTACT

INFORMATION

MEETING LOCATION POSTING
City of Scotts Valley City Council Chambers The agenda was posted 1 Civic Center Drive 1 Civic Center Drive on 4-12-2024 at City Scotts Valley, CA Scotts Valley, CA 95066 Hall, SV Senior Center, 95066 OR SV Public Works
(831) 440-5600 Zoom Video Conference Building, and on the https://us02web.zoom.us/j/83295730901 Internet
at www.scottsvalley.gov.

The City Council meeting was called to order at 6:00 PM.

CM Dilles attended the three Drug Abuse Resistance Education (DARE) graduations, and he attended the Police Department Volunteer Dinner which recognized the volunteers, reserves and explorers.

VM Timm attended a meeting of the Association of Monterey Bay Area Governments

City Council Meeting Minutes
Date: April 17, 2024

CITY MANAGER REPORT
(AMBAG) where they approved the 2050 Metropolitan Transportation Plan and the Sustainable Community Strategy Plan.

CM Lind announced that it is National Public Safety Communicator Appreciation Week.

The City is lucky to have its own dispatch service and 911 call center, and because of the work of the dispatchers, we are able to be open 24 hours, 7 days a week. CM Lind shared her appreciation for our dispatchers and urged others to do the same.

CM Lind noted that she is proud that the Police Department still teaches DARE in the City’s elementary schools and thanked everyone involved for their dedication to this program.

Mayor Johnson attended a meeting of the Regional Transportation Commission (RTC) where they discussed the Rail Trail project. He noted that more on this item will be discussed, and potentially settled, at a meeting tomorrow in the Scotts Valley City Council Chambers.

Mayor Johnson attended the Police Department volunteer dinner and is impressed with how many people find time in their busy lives to volunteer. He plans to do a future mayor's column on volunteerism throughout the County.

Fiscal Year (FY) 2024-2025 Budget: We are well on our way to developing the budget for FY 2024-2025, and the staff is looking forward to meeting with the budget subcommittee for a series of meetings before the full budget is presented to the City Council on May 15th.

Meeting with PG&E: In a productive meeting with PG&E, they discussed hardening the PG&E infrastructure to prepare for wildfire season, minimizing the impacts on residents specifically regarding power outages, and they discussed the proposed rate increases. City Manager LaGoe requested additional data from PG&E.

Meeting with AT&T: In a productive meeting with AT&T they discussed the application that AT&T submitted to the California Public Utilities Commission (CPUC) to drop their responsibility as the carrier of last resort, which impacts our City. If the CPUC does approve this request there will be a long implementation period so we have some time to navigate this situation. AT&T will be prohibited from leaving customers without communication service. We continue to maintain communication with AT&T on this issue. Another topic of discussion was the communication lines that feed the City's emergency dispatch and the wastewater infrastructure.

Leadership Santa Cruz: City Manager LaGoe attended the Agriculture Day for Leadership Santa Cruz and learned a lot about the agriculture industry in Santa Cruz County, the different types of farms, as well as the role of the Land Trust.

City Council Meeting Minutes
Date: April 17, 2024

PUBLIC COMMENT TIME

ALTERATIONS TO CONSENT AGENDA

CONSENT AGENDA
Library Director Final Interview Panel: As a member of the Board of Directors for the Library Joint Powers authority, City Manager LaGoe will be on the interview panel as they hold final interviews next week for the County Library Director.

Housing for Health Board Meeting: City Manager LaGoe attended the Housing for Health Board meeting. As a reminder, this seat rotates between Scotts Valley and Capitola. May is Affordable Housing Month so there are many events happening across the County to highlight affordable housing, educate people about affordable housing and look at various types of affordable housing projects. Of the many events that will be occurring in the month of May, two noteworthy events are the Affordable Housing Now event on May 21st regarding the future housing developments and impacts to the water supply; and the Countywide Housing Panel on May 13th where each jurisdiction will highlight the housing programs in their respective areas.

City of Scott Valley Wildfire Preparedness Event: The City will host an event at the Performing Arts Center on May 14th at 6:00 PM to discuss wildfire preparedness and the wildfire insurance crisis in our area.

CM Lind announced that the Scotts Valley Chamber of Commerce Community Awards Gala is on May 10th at Roaring Camp and early bird pricing is available through April 26th. Tickets can be purchased by accessing the Chamber's website. At the gala they will be recognizing Man of the Year Victor Alejandro, Woman of the Year June Barron, Business of the Year Steel Bonnet Brewing, Educator of the Year Christie Danner, Organization of the Year Scotts Valley Youth Softball, Youth of the Year Kavin Pugazhenthi and Ambassador of the Year Keira Mulder.

Rhonda Reyna, a resident of Scotts Valley, spoke about her federal lawsuit and stated that she feels that people are indifferent to her suffering, and she feels that city leaders should intervene on her behalf.

M/S: Timms/Timm
To approve the Consent Agenda with no alterations.

Carried 5/0 (AYES: Johnson, Timm, Dilles, Lind, Timms)

1. Approve City Council minutes from the 04-03-2024 meeting

2. Approve check register dated 03-22-2024 through 04-11-2024

City Council Meeting Minutes
Date: April 17, 2024

PUBLIC HEARINGS

ALTERATIONS TO REGULAR AGENDA

REGULAR AGENDA

3. Public Works Facility Improvement Project – Building Construction. Project No. 24-002, Change Order No. 1

4. Amendment to the surface remediation agreement between the City of Scotts Valley and the City of Santa Cruz
The public hearing was held after the Regular Agenda (see Alterations to Regular Agenda).

1. Discussion of City of Scotts Valley application for Community Development Block Grant Program Income (CDBG-PI) Funds
City Manager LaGoe presented this item. Consultant Lorie Adams from Adams Ashby attended virtually to answer questions.

The Council Members asked clarifying questions and gave input. All Council Members were in favor of the ADA improvements to the Senior Center.

Mayor Johnson opened the public hearing at 6:39 PM. No members of the public came forward, and the public hearing was closed at 6:40 PM.

M/S: Timms/Lind
To use the CDBG PI funds to make ADA and other improvements to the Senior Center, and to use any remaining funds for ADA path of travel improvements at city parks.

Carried 5/0 (AYES: Johnson, Timm, Dilles, Lind, Timms)
M/S: Lind/Timm
To hold the Public Hearing after the Regular Agenda and approve the Regular Agenda with this alteration.

Carried 5/0 (AYES: Johnson, Timm, Dilles, Lind, Timms)

1. Consider request to display the Pride flag to commemorate Pride Month from June 1st to June 30th, 2024
City Manager LaGoe gave the background of the flag policy, and the Council Members spoke about the desire to have the City of Scotts Valley continue to be welcoming and inclusive to all people.

Rhonda Reyna, a resident of Scotts Valley, spoke in opposition to displaying the Pride

City Council Meeting Minutes
Date: April 17, 2024

CLOSED SESSION SUBJECT(S)

RECONVENE TO OPEN SESSION

REPORT ON ACTION TAKE DURING CLOSED SESSION

ADJOURNMENT
Flag.

Adina Licht, a resident of Scotts Valley, spoke in favor of displaying the Pride Flag.

M/S: Timm/Dilles
To display the Pride flag to commemorate Pride Month from June 1st to June 30th, 2024.

Carried 5/0 (AYES: Johnson, Timm, Dilles, Lind, Timms)

2. Future Council Agenda Items
None.

The City Council convened to closed session at 6:48 PM to discuss the following items:

1. Conference with legal counsel regarding real property negotiations Legal Authority: Government Code Section 54956.8
Location: APNS: 022-721-07, 022-721-08, 022-721-09 (Town Center) Staff Present: City Manager, City Attorney, Administrative Services Director

2. Conference with legal counsel regarding liability claim Legal Authority: Government Code Section 54956.9
Name of Case: Clark Claim
Staff Present: City Manager, City Attorney

3. Public Employee Annual Performance Evaluation
Legal Authority: Government Code Section 54957(b)(1)
Position: City Manager
Staff Present: City Manager, City Attorney
The City Council reconvened to open session at 8:05 PM.

City Attorney Powell announced that there was no report from the Closed Session meeting.

The meeting adjourned at 8:05 PM.

CONVENE TO CLOSED SESSION

City Council Meeting Minutes
Date: April 17, 2024

Attest:

Cathie Simonovich, City Clerk
Approved:

Randy Johnson, Mayor

apadatecr2 City of Scotts Valley along 04/18/2024 09:38 Page 1 A/P Check Register Checks from 04/12/2024 to 04/18/2024
Check Check Vendor Name Net Check Check CheckNumber Date Amount Status Type Cash Account: 999-10100-000-000-000000
131508 04/18/24 ACC BUSINESS 1,817.59 O Regular
131509 04/18/24 ACCENT CLEAN & SWEEP INC 5,478.00 O Regular131510 04/18/24 ACE PORTABLE SERVICES 1,500.48 O Regular131511 04/18/24 ACEK9.COM 168.00 O Regular131512 04/18/24 ADOBE ANIMAL HOSPITAL SOQUEL 392.28 O Regular131513 04/18/24 AGILE OCCUPATIONAL MEDICINE 2,728.00 O Regular131514 04/18/24 ALLISON PFEFFERKORN 365.18 O Regular131515 04/18/24 AMAZON CAPITAL SERVICES 200.30 O Regular131516 04/18/24 AT&T 150.37 O Regular131517 04/18/24 AT&T 3,275.05 O Regular131518 04/18/24 BADAWI & ASSOCIATES 1,973.50 O Regular131519 04/18/24 BOWMAN & WILLIAMS 19,727.34 O Regular131520 04/18/24 BRISHAN INC. 1,975.10 O Regular131521 04/18/24 CALIFORNIA DEPARTMENT OF 4,181.00 O Regular131522 04/18/24 CARMEL AREA WASTEWATER DIST 6,261.00 O Regular131523 04/18/24 CHRISP COMPANY 4,209.75 O Regular131524 04/18/24 COMCAST 333.22 O Regular131525 04/18/24 COMCAST 1,050.55 O Regular131526 04/18/24 COMPUTERSMITHS LLC 30.00 O Regular131527 04/18/24 CRYSTAL SPRINGS WATER CO 136.50 O Regular131528 04/18/24 DEPT OF JUSTICE 64.00 O Regular131529 04/18/24 DREW DENTAL CORP 224.16 O Regular131530 04/18/24 FOREVER FIREWOOD, INC. 2,545.00 O Regular131531 04/18/24 GOOD CITY COMPANY 3,786.25 O Regular131532 04/18/24 GRANITE ROCK COMPANY 66,264.59 O Regular131533 04/18/24 HANSON ASSOCIATES ASSET & 3,600.00 O Regular131534 04/18/24 J. JOHNSON & COMPANY INC. 107,101.88 O Regular131535 04/18/24 JESSE PIDCOCK 180.00 O Regular131536 04/18/24 JOSE PEREZ 1,100.00 O Regular131537 04/18/24 K & D LANDSCAPING, INC. 129,449.15 O Regular131538 04/18/24 KENNEDY-JENKS CONSULTANTS 5,682.00 O Regular131539 04/18/24 KJRB 1,440.00 O Regular131540 04/18/24 LIEBERT CASSIDY WHITMORE 12,089.00 O Regular131541 04/18/24 LINCOLN FINANCIAL GROUP 1,422.41 O Regular131542 04/18/24 LOGAN & POWELL, LLP 16,484.58 O Regular131543 04/18/24 MEREDITH ROBERTS 699.50 O Regular131544 04/18/24 MONTEREY REGIONAL 6,351.24 O Regular131545 04/18/24 NATIONAL COMTEL NETWORK INC. 9.26 O Regular131546 04/18/24 OLIN CORPORATION AS SOLE 5,096.11 O Regular131547 04/18/24 PACIFIC GAS & ELECTRIC CO 59,599.91 O Regular131548 04/18/24 PETERSON POWER SYSTEMS, INC. 1,761.21 O Regular131549 04/18/24 PHILLIP D NEUMAN 38,667.30 O Regular131550 04/18/24 POLLY CATICCI 400.00 O Regular131551 04/18/24 PRESS BANNER 719.00 O Regular

apadatecr2 City of Scotts Valley along 04/18/2024 09:38 Page 2 A/P Check Register Checks from 04/12/2024 to 04/18/2024
Check Check Vendor Name Net Check Check CheckNumber Date Amount Status Type131552 04/18/24 PURETEC INDUSTRIAL WATER 170.46 O Regular131553 04/18/24 S.V. WATER DISTRICT - BULK 30.30 O Regular131554 04/18/24 SAN LORENZO VALLEY WATER DISTR 45.01 O Regular131555 04/18/24 SANTA CRUZ LIVE SCAN, INC. 270.00 O Regular131556 04/18/24 SANTA CRUZ SENTINEL 531.20 O Regular131557 04/18/24 SOIL CONTROL LAB 1,224.00 O Regular131558 04/18/24 SWEDBERG ELECTRIC INC. 5,590.00 O Regular131559 04/18/24 SYCAL ENGINEERING INC 5,558.48 O Regular131560 04/18/24 TELECOMMUNICATIONS 6,666.24 O Regular131561 04/18/24 THE ACTIVE NETWORK 5,100.00 O Regular131562 04/18/24 THE CARD SHARK INC 53.78 O Regular131563 04/18/24 THE PIED PIPER INC. 155.50 O Regular131564 04/18/24 THOMSON REUTERS-WEST 377.60 O Regular131565 04/18/24 U.S. BANCORP OFFICE 1,404.37 O Regular131566 04/18/24 U.S. BANK CORPORATE 16,718.52 O Regular131567 04/18/24 USA BLUE BOOK 900.03 O Regular131568 04/18/24 VERIZON WIRELESS 178.18 O Regular131569 04/18/24 VICTORIA SAN NICOLAS 95.00 O Regular131570 04/18/24 VU LE DDS 23.10 O Regular131571 04/18/24 YESHE JACKSON FINE ART 800.00 O Regularapadatecr2 City of Scotts Valley along 04/18/2024 09:38 Page 2 A/P Check Register Checks from 04/12/2024 to 04/18/2024
64 Checks total: 566,581.53
0 ACH total:0 EFTPS total:0 Wire transfer total:0 Payment Manager total:
64 GRAND TOTALS 566,581.53

apadatecr2 City of Scotts Valley along 04/25/2024 10:00 Page 1 A/P Check Register Checks from 04/19/2024 to 04/25/2024
Check Check Vendor Name Net Check Check CheckNumber Date Amount Status Type Cash Account: 999-10100-000-000-000000
131572 04/25/24 AFLAC-FLEX ONE 411.86 O Regular
131573 04/25/24 AGILE OCCUPATIONAL MEDICINE 1,564.00 O Regular131574 04/25/24 ALVAREZ IND INC CLEAN BLDG 256.00 O Regular131575 04/25/24 BOWMAN & WILLIAMS 255.00 O Regular131576 04/25/24 CHLOE GRAHAM 1,100.00 O Regular131577 04/25/24 CRYSTAL SPRINGS WATER CO 45.00 O Regular131578 04/25/24 CUMMING MANGEMENT GROUP, INC 2,581.25 O Regular131579 04/25/24 DEPT OF JUSTICE 256.00 O Regular131580 04/25/24 GOOD CITY COMPANY 2,276.25 O Regular131581 04/25/24 HULME PROFESSIONAL 1,100.00 O Regular131582 04/25/24 JEREMY LONG 1,220.13 O Regular131583 04/25/24 K & D LANDSCAPING, INC. 3,820.00 O Regular131584 04/25/24 KIMLEY-HORN & ASSOCIATES INC 14,241.42 O Regular131585 04/25/24 MISSION UNIFORM SERVICE 64.27 O Regular131586 04/25/24 NATIONAL COMTEL NETWORK INC. 8.80 O Regular131587 04/25/24 NORTH CENTRAL LABORATORIES 480.37 O Regular131588 04/25/24 PACIFIC GAS & ELECTRIC CO 412.99 O Regular131589 04/25/24 PHENOVA 962.03 O Regular131590 04/25/24 PHILLIP D NEUMAN 1,339.35 O Regular131591 04/25/24 SCOTTS VALLEY COMMUNITY 595.00 O Regular131592 04/25/24 STEPHANIE HILL 114.40 O Regular131593 04/25/24 SUN RIDGE SYSTEMS INC 8,000.00 O Regular131594 04/25/24 SYCAL ENGINEERING INC 450.00 O Regular131595 04/25/24 TORO PETROLEUM CORP 5,255.14 O Regular131596 04/25/24 URBAN FIELD STUDIO OAKLAND 18,730.00 O Regular131597 04/25/24 VISION SERVICE PLAN 1,197.00 O Regularapadatecr2 City of Scotts Valley along 04/25/2024 10:00 Page 1 A/P Check Register Checks from 04/19/2024 to 04/25/2024
26 Checks total: 66,736.26
0 ACH total:0 EFTPS total:0 Wire transfer total:0 Payment Manager total:
26 GRAND TOTALS 66,736.26

AGENDA ITEM 3.

DATE: 5/1/2024
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: 5/1/2024
TO: Honorable Mayor and City Council
FROM: Scott Hamby, Interim Public Works Director
APPROVED: Mali LaGoe, City Manager
SUBJECT: Consideration of Sanitary Sewer Connection Request; APN 067-103- 17, 143 La Cuesta Drive

SUMMARY OF ISSUE
On February19, 2014, the City Council adopted Resolution No. 1660.3 (attached), a policy for the consideration of sewer hookups for properties located outside the City limits. The policy provides that requests for sewer hookups will be reviewed and approved by the City Council on a case-by-case basis for connection to the sewer system through an extraterritorial service agreement.

The property owner at 143 La Cuesta Drive (APN 067-103-17) is requesting to connect to the City’s sanitary sewer system due to the failure of the property’s septic system. Pursuant to Resolution No. 1660.3, the following criteria must be met to allow a sewer connection outside of the City limits:
• There must be adequate capacity in the sewer treatment system to accommodate the additional hook up.
• Property must be located within the City’s sphere of influence. • If hook ups are allowed, the applicable fair share assessment for sewer capacity and hook up fee shall be paid.
• Prior to sewer connection, written approval from LAFCO is received in accordance with Government Code Section 56133.

There is adequate capacity in the sewer treatment system to accommodate this connection.

The property is located within the City’s sphere of influence. The applicant has agreed to pay his fair share assessment, if needed. LAFCO considered and approved this request on October 30, 2023, prior to the City Council’s consideration.

FISCAL IMPACT
The City will receive $7,548.00 in wastewater connection fees to be deposited into the Wastewater Fund. There is no General Fund impact.

STAFF RECOMMENDATION
As the applicant has met the criteria of Resolution No. 1660.3, staff recommends that, the City Council approve Resolution 1660.7 authorizing the request for 143 La Cuesta, APN 067-103- 17, to connect to the City’s sanitary sewer system.

TABLE OF CONTENTS

1. 143 La Cuesta Sewer Connection Request

2. Res1660.3.AmendingSewerHookUpPolicy.02-19-2014

3. Resolution 1660.7 Authorizing Sewer Connection for APN 067-103-17

4. 143 La Cuesta Parcel Map

5. LAFCO Approval 143 La Cuesta

RESOLUTION NO. 1660.7

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SCOTTS VALLEY AUTHORIZING THE CONNECTION OF APN 067-103-17
TO THE CITY’S SANITARY SEWER SYSTEM
WHEREAS, on February 19, 2014 the City Council adopted Resolution No. 1660.3, allowing for the consideration of sewer hooks for properties located outside the City limits; and
WHEREAS, the adopted policy sets criteria to be reviewed on a case by case basis for approval by the City Council including:
• There must be adequate capacity in the sewer treatment system to accommodate the additional hook up.
• Property must be located within the City’s sphere of influence. • If hook ups are allowed, the applicable fair share assessment for sewer capacity and hook up fee shall be paid.
• Prior to sewer connection, written approval from the Santa Cruz County Local Agency Formation Commission (LAFCO) is received in accordance with Government Code Section 56133; and
WHEREAS, the property owner of APN 067-103-17 has requested to connect to the City’s sanitary sewer system; and
WHEREAS, staff have reviewed the request and find it to meet the criteria established; and
WHEREAS, on October 30, 2023, the LAFCO Commission adopted Resolution No. 2023-22 approving the extraterritorial service agreement.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Scotts Valley that the connection of APN 067-103-17 to the City’s sanitary sewer system is hereby authorized through an extraterritorial service agreement This resolution was adopted at a duly held regular meeting of the City Council of the City of Scotts Valley on the 1st day of May, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Approved: ____________________________
Randy Johnson, Mayor
Attest: ___________________________
Cathie Simonovich, City Clerk

AGENDA ITEM 4.

DATE: 5/1/2024
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: 5/1/2024
TO: Honorable Mayor and City Council
FROM: Stephanie Hill, Administrative Services Director
APPROVED: Mali LaGoe, City Manager
SUBJECT: Investment Report for the Quarter Ended March 31, 2024

SUMMARY OF ISSUE
Attached is the portfolio performance status report for the City and Supplemental Law Enforcement Fund ("SLESF") investment report for the quarter ended March 31, 2024. This information is for review only. No action is required by the Council.

The City's investment report submitted herein complies with the City’s investment policy and evidence that there is adequate cash flow to meet the City’s needs for the next six months.

The City traditionally excess operating portfolio funds in the Local Agency Investment Fund ("LAIF") and to the California Asset Management Program (“CAMP”). CAMP is a California Joint Powers Authority (“JPA”) established in 1989. Investments offered through the Cash Reserve Portfolio (the “Pool” or the “CAMP Pool”) and CAMP Term are permitted for all local agencies under California Government Code Section 53601(p). CAMP is directed by a board of trustees, which is made up of experienced local government finance directors and treasurers.

The SLESF investment report reflects the latest information available concerning how these monies provided by the State of California for front line police services were invested as of March 31, 2024.

Additional information on the Pooled Money Investment Account ("PMIA") and LAIF are provided from the State Treasurer’s site.

FISCAL IMPACT
There is no fiscal impact of receiving and filing the report.

STAFF RECOMMENDATION
Receive and file an Investment Report for the Quarter Ended March 31, 2024.

TABLE OF CONTENTS

1. FY2324 Q3_INVESTMENT REPORT

TRUSTEE TYPE OF INVESTMENT ISSUER MATURITY DATE FACE VALUE COST MARKET VALUE VALUATION YIELD General Pooled Investments
State of California Local Agency Investment Fund (LAIF) State of California Demand - 1 day 14, $ 14,956,655 956,655 $ 14,869,776 $ * LAIF 4.300%Board of Trustees California Asset Management Program (CAMP) CAMP Demand - 1 day 5,232,686 $ 5,232,686 $ 5,232,686 $ CAMP 5.480% Weighted Average Rate for General Pooled Investments 4.606% Investments of Bond Proceeds
Bank of New York Mellon US Treasury Notes Bank of New York Mellon Demand - 1 day 378 $ 378 $ 378 $ Bank of New York 5.000%Bank of New York Mellon US Treasury Notes Bank of New York Mellon Demand - 1 day 370,500 $ 370,500 $ 370,500 $ Bank of New York 4.717% **Bank of New York Mellon US Treasury Notes Bank of New York Mellon Demand - 1 day 1,019 $ 1,019 $ 1,019 $ Bank of New York 0.000%* Interest is paid at maturity. Market Value based on latest factor of 0.994191267 provided by LAIF on 03/31/2024, which has been applied to face value.** Weighted average for all accounts.

City of Scotts Valley
Quarterly Investment Report
March 31, 2024
74%
26%
City's Investment Portfolio Allocation
Local Agency Investment Fund (LAIF) California Asset Management Program (CAMP)

FACE VALUE TRUSTEE/INVESTMENT TYPE YIELD
$ 182,985 184,054 $ * California Local Agency Investment Fund (LAIF) 4.300%$ 182,985 184,054 $ * Interest is paid at maturity. Market Value includes accrued interest.

Supplemental Law Enforcement Fund (SLESF)
Quarterly Investment Report
March 31, 2024

MARKET VALUE

March 4.232
February 4.122
January 4.012
December 3.929
November 3.843
October 3.670
LAIF Apportionment Rate(2): 4.30
LAIF Earnings Ratio(2): 0.00011755619077389
LAIF Administrative Cost(1)*: 0.27
PMIA Average Life(1): 226
LAIF Fair Value Factor(1): 0.994191267
PMIA Daily(1): 4.22
PMIA Quarter to Date(1): 4.12
Treasuries

58.24%
Agencies

22.16%
Certificates of
Deposit/Bank Notes

9.23%
Time
Deposits

3.25%
Commercial
Paper

6.47%
Corporate
Bonds

0.43%
Loans

0.22%
Notes: The apportionment rate includes interest earned on the CalPERS Supplemental Pension Payment pursuant to Government Code 20825 (c)(1) and interest earned on the Wildfire Fund loan pursuant to Public Utility Code 3288 (a). *The percentage of administrative cost equals the total administrative cost divided by the quarterly interest earnings. The law provides that administrative costs are not to exceed 5% of quarterly EARNINGS of the fund. However, if the 13-week Daily Treasury Bill Rate on the last day of the fiscal year is below 1%, then administrative costs shall not exceed 8% of quarterly EARNINGS of the fund for the subsequent fiscal year.

Source:
(1) State of California, Office of the Treasurer
(2) State of Calfiornia, Office of the Controller
PMIA Average Monthly
Effective Yields(1)
PMIA/LAIF Performance Report
as of 4/17/24
Daily rates are now available here. View PMIA Daily Rates Quarterly Performance
Quarter Ended 03/31/24
Chart does not include $2,005,000.00 in mortgages, which equates to 0.001%. Percentages may not total 100% due to rounding.

Pooled Money Investment Account
Monthly Portfolio Composition (1)
3/31/24
$156.5 billion

MONTHLY PERFORMANCE
Pooled Money Investment Account
March 2024
12 Months

HIGH LOW
Average Life (days) 226 218 269 212
Certificates of Deposit & Bank Notes 9.23% 10.04% 10.04% 5.59% Commercial Paper 6.47% 6.38% 6.47% 3.94%
Treasuries 58.24% 54.92% 66.66% 54.92%
MARKET VALUE (%) of BOOK VALUE
Jun-2022 98.8902 Jun-2023 99.2503
Sep-2022 98.4022 Sep-2023 99.4272
Dec-2022 98.6926 Dec-2023 100.2054
Mar-2023 Apr-1900 Mar-2024 100.2851
3/31/2024 2/29/2024
Percentages may not total 100%, due to rounding.

97.5 98.0

98.5 99.0

99.5 100.0
100.5
101.0
101.5
102.0
102.5
103.0
103.5
6/22 9/22 12/22 3/23 6/23 9/23 12/23 3/24
Market Value (%) of Book Value

PMIA MARKET VALUATION
PMIA
Market Value BV=100
Treasuries

58.24%
Agencies

22.16% Certificates of
Deposit / Bank
Notes

9.23%
Time Deposits

3.25%
Commercial
Paper

6.47%
Corporate
Bonds
Loans 0.43%

0.22%
PMIA Portfolio Composition - 03/31/2024
$156.5 billion

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%
3/20196/20199/2019
12/2019
3/20206/20209/2020
12/2020
3/20216/20219/2021
12/2021
3/20226/20229/2022
12/2022
3/20236/20239/2023
12/2023
3/2024
Average Monthly Yield Comparison - 03/2019 through 03/2024 PMIA

S&P GIP
Fed Funds
March Yields
PMIA 4.232%
S&P GIP 5.520%
Fed Funds 5.310%

AGENDA ITEM 1.

DATE: 5/1/2024
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: 5/1/2024
TO: Honorable Mayor and City Council
FROM: Taylor Bateman, Community Development Director, Ben Noble, Consultant
APPROVED: Mali LaGoe, City Manager
SUBJECT: Consideration of the Planning Commision's recommendation to amend Scotts Valley Municipal Code Title 16 (Subdivisions) and Title 17 (Zoning) to adopt a local ordinance implementing SB 9.

SUMMARY OF ISSUE
California Senate Bill (SB) 9, enacted in 2022, requires local jurisdictions to allow two primary dwelling units on one lot in a single-family zoning district. SB 9 also allows for a one-time subdivision of an existing lot into two lots (“urban lot split”) with two units permitted on each of the newly created lots.

The proposed Municipal Code amendments would establish a local ordinance to implement SB

9. These amendments contain permit requirements and objective standards for SB 9 residential development and urban lot splits. The proposed Municipal Code amendments are accompanied by SB 9 public health and safety and environmental resource protection standards to be adopted by City Council resolution. The proposed SB 9 ordinance and standards allow for SB 9 projects consistent with state law while also addressing unique development constraints and concerns in Scotts Valley.

PLANNING COMMISSION REVIEW
The Planning Commission held a study session on March 14, 2024 to provide input on an approach to address important issues in the SB 9 ordinance. On April 11, 2024, the Planning Commission reviewed the proposed Municipal Code amendments and SB 9 standards and recommended their adoption to the City Council. A discussion of the proposed amendments and standards is provided in the attached Planning Commission staff report.

PUBLIC NOTICE & COMMENT
On April 19, 2024, public hearing notices were posted at City Hall, the Scotts Valley Branch Library, and the Scotts Valley Senior Center, consistent with State law. As of this date, no comments have been received.

FISCAL IMPACT
There is no fiscal impact associated with the recommended action.

STAFF RECOMMENDATION
The Planning Commission recommends the City Council:

1. Adopt Ordinance No. 16.141 with amendments to Title 17, Zoning, and Title 16, Subdivisions, of the Scotts Valley Municipal Code to establish a local SB 9 ordinance.

2. Adopt Resolution No. 2046 to adopt the SB 9 Public Health and Safety and Environmental Resource Protection Standards.

TABLE OF CONTENTS

1. Ordinance No. 16.141 Adopting SB 9 Municipal Code Amendments

2. Resolution No. 2046 Adopting SB 9 Standards

3. Planning Commission Staff Report (April 11, 2024)

ORDINANCE NO. 16.141

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SCOTTS VALLEY AMENDING TITLE 17 OF THE SCOTTS VALLEY MUNICIPAL CODE TO ADD A NEW CHAPTER 17.55, SB 9 RESIDENTIAL DEVELOPMENT, AND AMENDING TITLE 16 OF THE SCOTTS VALLEY MUNICIPAL CODE TO ADD A NEW CHAPTER 16.78, URBAN LOT SPLITS, TO IMPLEMENT SENATE BILL (SB) 9 WHEREAS, SB 9 (Chapter 162, Statutes of 2021) enacted amendments to Section 66452.6 and added Sections 65852.21 and 66411.7 to the Government Code, effective January 1, 2022; and
WHEREAS, Government Code Section 65852.21 requires local agencies to allow two primary dwellings on one lot in single-family zoning districts if the project meets specified requirements; and
WHEREAS, Government Code Section 66411.7 requires local agencies to allow an urban lot split in single-family zoning districts with two dwelling units allowed on each newly created lot if the project meets specified requirements; and WHEREAS, Government Code Sections 65852.21(b) and 66411.7(b) authorizes local agencies to impose objective zoning standards, objective subdivision standards, and objective design review standards that do not conflict with the requirements of SB 9; and WHEREAS, the Planning Commission held a study session on March 14, 2024 to provide input on an approach to address important issues in a local ordinance to implement SB 9; and
WHEREAS, City staff used Planning Commission direction to prepare Chapter 17.55, SB 9 Residential Development, to be added to Title 17, Zoning, of the City of Scotts Valley Municipal Code, and to prepare Chapter 16.78, Urban Lot Splits, to be added to Title 16, Subdivisions, of the City of Scotts Valley Municipal Code; and WHEREAS, the Planning Commission held a duly noticed public hearing on April 11, 2024, at which time it considered all evidence presented, both written and oral and at the end of the hearing voted to recommend that the City Council adopt this Ordinance; and WHEREAS, the City Council held a duly noticed public hearing on this Ordinance on May 1, 2024, at which time it considered all evidence presented, both written and oral.

NOW, THEREFORE, the City Council of the City of Scotts Valley does hereby ordain as follows:

Section 1. Title 17, Zoning, of the Scotts Valley Municipal Code is hereby amended to add a new Chapter 17.55, SB 9 Residential Development, to read as follows:
“Chapter 17.55 – SB 9 Residential Development

17.55.010 Purpose and Intent

17.55.020 Definitions

17.55.030 Permitting Process

17.55.040 General Requirements

17.55.050 Development Standards

17.55.060 Objective Design Standards

17.55.070 Deed Restrictions

17.55.010 Purpose and Intent
This chapter contains requirements for SB 9 residential developments pursuant to Government Code Section 65852.21. These requirements are necessary to preserve the public health, safety and general welfare, and to promote orderly growth and development. In cases where a requirement in this chapter directly conflicts with Government Code Section 65852.21, the Government Code governs.

17.55.020 Definitions
A. SB 9 Residential Development. A residential project on a parcel within a singlefamily residential zoning district proposed pursuant to Government Code Section 65852.21
B. Urban Lot Split. The subdivision of an existing parcel into two parcels within a singlefamily residential zoning district proposed pursuant to Government Code Section 66411.7 and Municipal Code Chapter 16.78 (Urban Lot Splits).

17.55.030 Permitting Process
A. Building Permit. An SB 9 residential development requires City approval of a building permit.

B. Ministerial Approval. The City shall ministerially approve a building permit for an SB 9 residential development if the application complies with all requirements of this chapter. No public hearing or discretionary review is required.

C. Urban Lot Splits. An SB 9 residential development that includes an urban lot split requires City approval of a parcel map pursuant to Municipal Code Chapter 16.78 (Urban Lot Splits).

D. Eligibility. The City shall accept an application for an SB 9 residential development only if the project complies with the following requirements.

1. Zoning District. The development is located in the R-1 Single-Family Residential, R-R Residential-Rural, or R-MT Residential-Mountain zoning district.

2. Compliance with Chapter. The development complies with all applicable requirements of this chapter.

3. Environmental Resources and Hazards. The development satisfies the requirements of Government Code subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision (a) of Section 65913.4, which prohibits development on sites subject to specified environmental resources and hazards.

4. Affordable and Rental Housing. The development will not require demolition or alteration of any of the types of housing identified in Government Code paragraph (3) of subdivision (a) of Section 65852.21.

5. Historic Resources. The development is not located within a historic district or property included on the State Historic Resources Inventory, as defined in Public Resources Code Section 5020.1.

E. Basis for Denial.

1. The City shall deny an application for an SB 9 residential development if either of the following is found:
a. The development fails to comply with any requirement in this chapter. Any such requirement that is the basis for denial shall be specified by the City in writing.
b. The City’s Building Official makes a written finding, based upon a preponderance of the evidence, that the proposed development would have a specific, adverse impact, as defined and determined in paragraph (2) of subdivision (d) of Government Code Section 65589.5, upon public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact.

2. The City shall not deny an SB 9 residential development solely because it conflicts with the City’s density limitations for the applicable zoning district.

17.55.040 General Requirements
A. Number of Primary Dwelling Units.

1. A maximum of two primary dwelling units are allowed on a parcel.

2. If a parcel is subdivided pursuant to Municipal Code Chapter 16.78 (Urban Lot Splits), a maximum of two primary dwelling units are allowed on each newly created parcel. Up to four units are allowed on the two parcels combined.

B. Accessory Dwelling Units.

1. Projects with Urban Lot Split. The following accessory dwelling unit (ADU) rules apply to a parcel created through an urban lot split as provided in Chapter

16.60 (Urban Lot Splits)
a. If the parcel contains one primary dwelling unit, one ADU or Junior ADU is also allowed on the parcel.
b. If the parcel contains two primary dwelling units, an ADU or Junior ADU is not allowed on the parcel.

2. Projects Without Urban Lot Split. Where a parcel has not been subdivided as provided in Chapter 16.78 (Urban Lot Split), one ADU and/or JADU is allowed on the parcel in addition to the two primary dwelling units.

C. Utility Connections.

1. Each primary dwelling unit shall be served by a separate utility connection for water, sewer, gas, and electrical services.

2. The City shall condition approval of a dwelling unit on the dedication of any easements deemed necessary to provide public services to the unit and access to the public right-of-way.

D. Residential Uses Only.

1. The primary use of a dwelling unit must be residential.

2. Home occupations consistent with Section 17.50.040 (Home Occupations) and other accessory uses are permitted in a dwelling unit.

E. Vacation Rentals. A dwelling unit may not be rented for a term of less than 31 days.

F. Existing Nonconformities. Establishing a dwelling unit shall not require the correction of an existing legal nonconforming zoning condition on the property.

G. Public Health and Safety. An SB 9 residential development shall comply with the City of Scotts Valley SB 9 Public Health and Safety and Environmental Resource Protection Standards, which are adopted by City Council resolution and may be amended from time to time.

H. Municipal Code Compliance.

1. An SB 9 development shall comply with all applicable provisions of the Municipal Code unless otherwise specified in this chapter.

2. In case of conflict between this chapter and other provisions in the Municipal Code, this chapter governs.

3. The City shall not impose any objective Municipal Code standard that would physically preclude the construction of two units on either of the resulting parcels or that would result in a unit size of less than 800 square feet. The Community

Development Director shall grant an exception to the applicable standard to the minimum extent necessary to comply with this section.

17.55.050 Development Standards
A. Building Height.

1. For an SB9 residential development that complies with the minimum yard requirements of the applicable zoning district and combining district, the maximum building height is 25 feet.

2. For an SB9 residential development that does not comply with the minimum yard requirements of the applicable zoning district and combining district, the maximum building height is 16 feet.

B. Unit Size.

1. For an SB9 residential development that complies with the minimum yard requirements of the applicable zoning district and combining district, the maximum unit size is 1,250 square feet per unit.

2. For an SB9 residential development that does not comply with the minimum yard requirements of the applicable zoning district and combining district, the maximum unit size is 800 square feet per unit.

C. Yards.

1. Minimum yards for an SB 9 residential development are as follows:
a. Front: As required in the applicable zoning district b. Side: 4 feet, except that no yard is required for a new side lot line shared between two parcels created through an urban lot split. c. Rear: 4 feet.

2. As provided in A and B above, an SB 9 residential development that complies with the minimum yard requirement for a single-family dwelling in the applicable zoning district is eligible for greater building height and unit size than is allowed for SB9 residential development that does not comply with the zoning district minimum yard requirement.

3. Notwithstanding Paragraph 1 above, no setback is required for an existing structure or a structure constructed in the same location and to the same dimensions as an existing structure.

D. Separation Between Dwelling Units.

1. No minimum separation is required between dwelling units on a parcel if the structures meet building code safety standards.

2. Dwelling units may be connected if the structures meet building code safety standards and are sufficient to allow a separate conveyance.

3. For purposes of this chapter, “sufficient for separate conveyance” means that each attached or adjacent dwelling unit is constructed in a manner adequate to allow for the separate sale of each unit in a common interest development as defined in Civil Code Section 1351 (including a residential condominium, planned development, stock cooperative, or community apartment project), or into any other ownership type in which the dwelling units may be sold individually.

E. Parking.

1. Required Parking. A minimum of one off-street parking space is required per dwelling unit except as provided in Paragraph 2 below.

2. Exceptions to Required Parking. No off-street parking is required in the following cases:
a. The parcel is located within one-half mile walking distance of either a highquality transit corridor, as defined in subdivision (b) of Section 21155 of the Public Resources Code, or a major transit stop, as defined in Section 21064.3 of the Public Resources Code.
b. There is a car share vehicle located within one block of the parcel. A car share vehicle means a motor vehicle that is operated as part of a regional fleet by a public or private car sharing company or organization that meet all the following criteria:
(1) Provides hourly or daily service;
(2) Vehicle reservations are processed and paid for using an on-line system;
(3) Vehicles can be accessed where they are parked without having to go to a different physical location to execute a contract and/or pick up the keys; and
(4) Fleet has more than five cars in Scotts Valley and more than 20 cars in Santa Cruz County.

3. Location on Lot. As required by Section 17.44.030(J), driveways and parking spaces shall not proportionately occupy more than 300 square feet for each 10 feet of required front yard setback.

4. Garages. Required parking spaces may be uncovered for an SB 9 project with two or fewer new units, including accessory dwelling units. Required parking shall be in a garage for the third or fourth unit in an SB 9 project.

5. Landscape Buffer.
a. Where a parking area with three or more spaces is located across a street or alley from or immediately adjacent to a residential district, a landscape strip not less than 5 feet in depth shall be planted and permanently maintained along the abutting property line of the parking area.

b. The landscape strip shall contain a row of landscaping with a minimum planting height of 36 inches.
c. Landscaping shall comply with intersection and driveway vision clearance requirements in Section 17.46.110.E.

F. Driveways.

1. Vacant Lots.
a. For an SB 9 development on a vacant lot, no more than one driveway curb cut is allowed with a maximum width of 20 feet. Units on two lots created through an urban lot split must share one driveway with access easements recorded as necessary.
b. The Community Development Director may grant an exception to this requirement when needed for emergency vehicle access.

2. Non-Vacant Lots.
a. For an SB 9 project on a lot with an existing home, two driveway curb cuts are allowed only if the existing site layout or other physical constraints physically precludes shared use of a single driveway curb cut. b. The maximum width of a second curb cut where allowed is 12 feet.

17.55.060 Objective Design Standards
A. Multi-Unit Residential Design Standards.

1. An SB 9 residential development that creates two or more new primary dwelling units shall comply with the Multi-Unit Residential Design Standards, which are adopted by City Council resolution and may be amended from time to time.

2. If one or more new primary dwelling units are added to a lot with an existing SB 9 residential development, the new dwelling unit(s) shall comply with the MultiUnit Residential Design Standards.

B. “Faces” Defined. As used in this section, the term “faces” means:

1. The building feature is parallel or substantially parallel to the street or property line; and

2. There is no other building located between the building feature and the street or property line.

C. Single Unit Projects. If an SB 9 residential development creates one new primary dwelling on a lot with an existing dwelling that was not previously established through an SB 9 residential development, the following design standards apply.

1. Garage Frontage. Where a dwelling with an internal or attached garage is located on the front half of the lot and the garage door faces a street, the garage

frontage including the door width shall not exceed 50 percent of the width of the front facade of the building.

2. Massing. A building wall that faces a street or an adjacent residential use shall not run in a continuous plane of more than 25 feet without one or more of the following treatments:
a. A change in wall plane with a minimum of 4 feet in depth for the facade. b. A front porch or other covered entry feature with a minimum depth of 3 feet and width of 6 feet providing access to the dwelling’s primary entrance. c. An upper story stepback of at least 6 feet in depth for at least 80 percent of the street facing building wall.
d. A protruding window (such as a bay window) of at least 2 feet in depth.

3. Articulation. A building wall that faces a street or an adjacent residential use shall not run in a continuous plane of more than 15 feet without one of the following treatments included on the facade at every building story:
a. Window.
b. Entry door.
c. Two or more visibly contrasting primary materials and/or colors. d. Wall mounted trellises for climbing plants.

4. Entries. Primary dwelling entrances must include one of the following:
a. A recess in the building wall with a minimum width of 4 feet and depth of 3 feet.
b. A covered porch, providing access to the entry, with a minimum dimension of 5 feet by 5 feet.

5. Roof Forms. Rooflines 25 feet or longer that face a street or an adjacent residential use shall be articulated with recessed or projecting gabled roof elements, roof dormers, changes in roof heights, changes in direction or pitch of roof slopes, and other similar methods.

6. Windows. Windows that face a street or an adjacent residential use shall comply with one of the following:
a. All windows shall feature built up profile trim/framing. Trim/framing must project at least 2 inches from the building wall with material that visually contrasts from the building wall.
b. Window glass shall be inset a minimum of 2 inches from the exterior wall or frame surface to add relief to the wall surface.

7. Exterior Materials. The primary wall finish material shall be wood, wood shingle, stone, brick, stucco, fiber cement or other cementitious material, or stone. T1-11

siding and all grooved or patterned wood panel or composite wood panel siding are prohibited.

8. Private Open Space. Each dwelling unit shall have at least 100 square feet of private open space. Required private open space shall comply with the following standards:
a. The open space shall be directly accessible from the dwelling unit. b. Balconies shall have a minimum dimension of 6 feet in depth and width and a minimum floor area of 50 square feet.
c. Patios shall have a minimum dimension of 8 feet in depth and width and a minimum floor area of 64 square feet.
d. Open space may be covered but not fully enclosed. If covered, the minimum floor to ceiling height is 8.5 feet.
e. Ground level private open space shall be screened or buffered from adjacent private or common open space and dwellings by landscaping, fencing, walls, trellises, or other screening elements.

B. Accessory Dwelling Units. A new accessory dwelling unit (ADU) included in an SB 9 residential development shall comply with the same design requirements as apply to an ADU that is not established as part of an SB 9 project.

C. Neighbor Privacy.

1. If a building wall faces an adjacent residential use and does not comply with the minimum interior side or rear yard requirements of the applicable zoning district or combining district, windows on the wall must be:
a. 5-foot minimum sill height above the finished floor; b. Clerestory; or
c. Opaque/frosted glass.

2. Second-story exterior decks and balconies may not face an interior side or rear yard that abuts an adjacent residential use.

3. No portion of a rooftop deck may be closer than 25 feet from an interior side or rear yard that abuts an adjacent residential use.

17.55.070 Deed Restrictions
A. Before obtaining a building permit for an SB 9 residential development, the property owner shall file with the County Recorder a declaration of restrictions containing a reference to the deed under which the property was acquired by the current owner.

The deed restriction shall state that:

1. The maximum size of the dwelling unit is limited to:

a. 1,250 square feet for development that complies with the minimum yard requirements of the applicable zoning district and combining district; and b. 800 square feet for development that does not comply with the minimum yard requirements of the applicable zoning district and combining district.

4. The dwelling unit may not be rented for a term of less than 31 days.

B. The above declarations are binding upon any successor in ownership of the property.

Lack of compliance shall be cause for code enforcement.

C. The deed restriction shall lapse upon removal of all dwelling units established under this chapter.”
Section 2. Title 16, Subdivisions, of the Scotts Valley Municipal Code is hereby amended by adding a new Chapter 16.78, Urban Lot Splits to read as follows:
“Chapter 16.78 – Urban Lot Splits

16.78.010 Purpose and Intent

16.78.020 Definitions

16.78.030 Permitting Process

16.78.040 General Requirements

16.78.050 Development Standards

16.78.060 Objective Design Standards

16.78.070 Deed Restrictions

16.78.010 Purpose and Intent
This chapter contains requirements for urban lot splits pursuant to Government Code Section 66411.7. These requirements are necessary to preserve public health, safety, and general welfare, and to promote orderly growth and development. In cases where a requirement in this chapter directly conflicts with Government Code Section 66411.7, the Government Code governs.

16.78.020 Definitions
A. SB 9 Residential Development. A residential project on a parcel within a singlefamily residential zoning district proposed pursuant to Government Code Section 65852.21 and Municipal Code Chapter 17.55 (SB 9 Residential Development).

B. Urban Lot Split. The subdivision of an existing parcel into two parcels within a singlefamily residential zoning district proposed pursuant to Government Code Section 66411.7.

16.78.030 Permitting Process
A. Parcel Map Required. A parcel map is required for all urban lot splits pursuant to Government Code Section 66411.7.

B. Eligibility. The City shall accept a parcel map application for an urban lot split only if the application complies with all of the following requirements.

1. Zoning District. The existing parcel is located in the R-1 Single-Family Residential, R-R Residential-Rural, or R-MT Residential-Mountain zoning district.

2. Existing Parcel Size. The area of the existing parcel is 2,400 square feet or more.

3. Environmental Resources and Hazards. The parcel satisfies the requirements of Government Code subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision (a) of Section 65913.4, which prohibits development on sites subject to specified environmental resources and hazards.

4. Affordable and Rental Housing. The proposed urban lot split would not require demolition or alteration of any of the types of housing identified in Government Code paragraph (3) of subdivision (a) of Section 65852.21.

5. Historic Resources. The parcel is not located within a historic district or property included on the State Historic Resources Inventory, as defined in Section 5020.1 of the Public Resources Code.

6. No Prior Urban Lot Split.
a. The parcel was not established through a prior urban lot split. b. Neither the owner of the parcel being subdivided nor any person acting in concert with the owner has previously subdivided an adjacent parcel using an urban lot.

C. Application Contents. A parcel map application for an urban lot split must be filed with the City on an official City application form. Applications shall be filed with all required fees, information, and materials as specified by the City.

D. Ministerial Approval. The City shall ministerially approve a parcel map for an urban lot split if the application complies with all requirements of this chapter. No public hearing or discretionary review is required.

E. Subdivision Map Act Compliance. The City shall approve an urban lot split only if it conforms to all applicable objective requirements of the Subdivision Map except as otherwise provided in this chapter.

F. Basis for Denial.

1. The City shall deny the urban lot split if either of the following is found:

a. The urban lot split fails to comply with any requirement in this chapter. Any such requirement that is the basis for denial shall be specified by the City in writing.
b. The building official makes a written finding, based upon a preponderance of the evidence, that the proposed subdivision would have a specific, adverse impact, as defined and determined in paragraph (2) of subdivision (d) of Government Code Section 65589.5 of the Government Code, upon public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact.

2. The City shall not deny an urban lot split solely because it proposes adjacent or connected structures provided that the structures meet building code safety standards and are sufficient to allow separate conveyance.

3. For purposes of this chapter, “sufficient for separate conveyance” means that each attached or adjacent dwelling unit is constructed in a manner adequate to allow for the separate sale of each unit in a common interest development as defined in Civil Code Section 1351 (including a residential condominium, planned development, stock cooperative, or community apartment project), or into any other ownership type in which the dwelling units may be sold individually.

G. Conditions of Approval.

1. Easements. The City shall condition parcel map approval on the dedication of any easements deemed necessary for the provision of public services to the proposed parcels and any easements deemed necessary for access to the public right-of-way.

2. Dedications and Improvements. The City shall not require dedications of rightsof-way or the construction of offsite improvements for the parcels being created as a condition of parcel map approval.

3. Nonconforming Zoning Conditions. The City may not require the correction of nonconforming zoning conditions on the parcel a condition of parcel map approval.

16.78.040 General Requirements
A. Number of New Parcels. An urban lot split may create no more than two new parcels.

B. New Parcel Size. The area of each newly created parcel must be:

1. At least 1,200 square feet; and

2. No smaller than 40 percent of the parcel area of the original parcel.

C. Lot Dimensions and Density. Minimum lot area, width, depth and density standards in the applicable zoning district do not apply to an urban lot split.

D. Maximum Number of Dwelling Units. No more than two dwelling units, including any accessory dwelling units or junior accessory dwelling units, are permitted on a parcel created by an urban lot split.

E. Access to Public Right-of-way. The newly created parcels shall provide access to the public right-of-way sufficient to allow development on the parcel to comply with all applicable property access requirements under the California Fire Code section 503 (Fire Apparatus Access Roads) and California Code Regulations Title 14, section 1273.00 et seq. (Intent).

F. Setbacks. An SB 9 residential development on a parcel created by an urban lot split shall comply with the following setback requirements:

1. Minimum Yards:
a. Front: As required in the applicable zoning district b. Side: 4 feet, except that no yard is required for a new side lot line shared between two parcels created through the urban lot split. c. Rear: 4 feet.

2. As provided in 17.55.050, an SB 9 residential development that complies with the minimum yard requirement for a single-family dwelling in the applicable zoning district is eligible for greater building height and unit size than is allowed for SB9 residential development that does not comply with the zoning district minimum yard requirement.

3. Notwithstanding Paragraph 1 above, no setback is required for an existing structure or a structure reconstructed in the same location and to the same dimensions as an existing structure.

G. Parking. An SB 9 residential development on a parcel created by an urban lot split shall comply with the following parking requirements:

1. Required Parking. A minimum of one off-street parking space shall be provided for each dwelling unit except as provided in Paragraph 2 below.

2. Exceptions to Required Parking. No off-street parking is required in the following cases:
a. The parcel is located within one-half mile walking distance of either a highquality transit corridor, as defined in subdivision (b) of Section 21155 of the Public Resources Code, or a major transit stop, as defined in Section 21064.3 of the Public Resources Code.
b. There is a car share vehicle located within one block of the parcel. A car share vehicle means a motor vehicle that is operated as part of a regional fleet by a public or private car sharing company or organization that meet all the following criteria:
(1) Provides hourly or daily service;

(2) Vehicle reservations are processed and paid for using an on-line system;
(3) Vehicles can be accessed where they are parked without having to go to a different physical location to execute a contract and/or pick up the keys; and
(4) Fleet has more than five cars in Scotts Valley and more than twenty cars in Santa Cruz County.

2. Location on Lot. As required by Section 17.44.030(J), driveways and parking spaces shall not proportionately occupy more than 300 square feet for each 10 feet of required front yard setback.

3. Garages. Required parking spaces may be uncovered for an SB 9 project with two or fewer new units, including accessory dwelling units. Required parking shall be in a garage for the third or fourth unit in an SB 9 project.

4. Landscape Buffer.
a. Where a parking area with three or more spaces is located across a street or alley from or immediately adjacent to a residential district, a landscape strip not less than 5 feet in depth shall be planted and permanently maintained along the abutting property line of the parking area. b. The landscape strip shall contain a row of landscaping with a minimum planting height of 36 inches.
c. Landscaping shall comply with intersection and driveway vision clearance requirements in Zoning Code Section 17.46.110.E.

H. Residential Land Use. The primary use of an SB 9 development on a parcel created by an urban lot split must be residential.

I. Owner Occupancy Affidavit.

1. The applicant for an urban lot split must sign an affidavit stating that the applicant intends to occupy one of the housing units as their principal residence for a minimum of three years from the date of the approval of the urban lot split.

2. Owner-occupancy is not required if the owner is a community land trust or qualified nonprofit corporation under Sections 214.15 or 402.1 of the Revenue and Taxation Code.

J. Vacation Rentals Prohibited. An SB 9 residential development on a parcel created by an urban lot split may not be rented for a term of less than 31 days.

K. Public Health and Safety. An urban lot split shall comply with the City of Scotts Valley SB 9 Public Health and Safety and Environmental Resource Protection Standards, which are adopted by City Council resolution and may be amended from time to time.

L. Municipal Code Compliance.

1. An urban lot split shall comply with all applicable provisions of the Municipal Code unless otherwise specified in this chapter.

2. In case of conflict between this chapter and other provisions in the Municipal Code, this chapter governs.

3. The City shall not impose any objective Municipal Code standard that would physically preclude the construction of two units on either of the resulting parcels or that would result in a unit size of less than 800 square feet. The Community Development Director shall grant an exception to the applicable standard to the minimum extent necessary to comply with this section.

16.78.050 Objective Standards
A. Multi-Unit Residential Design Standards. Parcels created by an urban lot split shall comply with the Multi-Unit Residential Design Standards, which are adopted by City Council resolution and may be amended from time to time.

B. Parcel Line Angles. New parcel lines that abut a street shall maintain right angles to streets or radial to the centerline of curved streets, or be parallel to existing parcel lines.

C. Street Frontage/Flag Lots.

1. For an urban lot split on a vacant lot that meets the zoning district minimum lot width, each newly created parcel shall have street frontage no less than 40 percent of the street frontage of the original parcel. A flag/access easement area of a flag lot may not be used to satisfy this minimum street frontage requirement.

2. For an urban lot split on a vacant lot that does not meets the zoning district minimum lot width or on a lot with an existing home, the newly created parcels shall comply with one of the following:
a. Each newly created parcel has street frontage no less than 40 percent of the street frontage of the original parcel; or
b. The urban lot split creates a flag lot consistent with existing objective flag lot standards in SVMC Section 17.46.060.F. City Council approval of the flag lot is not required.

D. Allowed Exceptions.

1. The City shall not impose any objective standards pursuant to this section that would physically preclude the construction of two units on either of the resulting parcels or that would result in a unit size of less than 800 square feet.

2. The Community Development Director shall grant an exception to the applicable standard to the minimum extent necessary to comply with this section.

16.78.060 Deed Restrictions
A. Before obtaining a building permit for an SB 9 residential development on a parcel created by an urban lot split, the property owner shall file with the County Recorder a declaration of restrictions containing a reference to the deed under which the property was acquired by the current owner. The deed restriction shall state that:

1. The parcel was created by an urban lot split and no further subdivision of the parcel is permitted.

2. The dwelling unit(s) on the parcel may not be rented for a term of less than 31 days.

B. The above declarations are binding upon any successor in ownership of the property.

Lack of compliance shall be cause for code enforcement.

C. The deed restriction shall lapse upon removal of all dwelling units established on a parcel created under this chapter.”
Section 3. CEQA COMPLIANCE. Pursuant to Government Code sections 65852.21(j) and 66411.7(n), the City may adopt an ordinance to implement SB 9 (Government Code sections 65852.21 and 66411.7), and such an ordinance shall not be considered a project under the California Environmental Quality Act (“CEQA”) Section 4. SEVERABILITY. If any section, subsection, subdivision, sentence, clause, phrase or portion of this Ordinance, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

Section 5. To the extent the provisions of the Scotts Valley Municipal Code as amended by this Ordinance are substantially the same as the provisions of that Code as they read immediately prior to the adoption of this Ordinance, then those provisions shall be construed as continuations of the earlier provisions and not as new enactments.

Section 6. EFFECTIVE DATE. This ordinance shall be in full force and effect thirty (30) days from and after the date of its adoption.

Section 7. PUBLICATION. The City Clerk shall certify as to the adoption of this Ordinance and shall cause a summary thereof to be published within fifteen (15) days of adoption and shall post a certified copy of this Ordinance, including the vote for and against same, in the Office of the City Clerk, in accordance with Government Code Section 36933.

This Ordinance was introduced on the 1st day of May, 2024, and passed and adopted on the 15th day of May, 2024, at a duly held meeting of the City Council of the City of Scotts Valley by the following votes:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED: ______________________________
Randy Johnson, Mayor
ATTEST:
_________________________________
Cathie Simonovich, City Clerk
APPROVED AS TO FORM:
_________________________________
Kirsten Powell, City Attorney

RESOLUTION NO. 2046

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SCOTTS VALLEY ADOPTING SB 9 PUBLIC HEALTH AND SAFETY AND ENVIRONMENTAL

RESOURCE PROTECTION STANDARDS

WHEREAS, the City of Scotts Valley prepared objective public health and safety and environmental resource protection standards for residential development and urban lot splits proposed pursuant to Government Code Sections 65852.21 and 66411.7 (“SB 9 Standards”); and
WHEREAS, the Planning Commission adopted Resolution No. 1796 recommending adoption of the SB 9 Standards; and
WHEREAS, the City Council held a duly noticed public hearing on May 1, 2024 on the proposed SB 9 Standards at which the public were granted an opportunity to provide oral and written testimony; and
WHEREAS, pursuant to Government Code sections 65852.21(j) and 66411.7(n), the City may adopt a local ordinance to implement SB 9 (Government Code sections 65852.21 and 66411.7), and such an ordinance shall not be considered a project under the California Environmental Quality Act (“CEQA”); and
WHEREAS, before adopting this Resolution, the City Council introduced Ordinance No.

16.141 to add to the Scotts Valley Municipal Code a new Chapter 17.55 (SB 9 Residential Development) and a new Chapter 16.78 (Urban Lot Splits) to implement Senate Bill (SB)

9. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Scotts Valley as follows:

1. The above recitals are true and correct and incorporated herein by reference.

2. The City Council hereby adopts the SB 9 Public Health and Safety and Environmental Resource Protection Standards, attached to this resolution as Exhibit A.

3. Such standards shall be effective immediately and may be amended from time to time, or repealed, by resolution of the City Council.

The above and foregoing resolution was duly and regularly adopted by the City Council of the City of Scotts Valley at a regular meeting held on the 1 st day of May, 2024, by the
following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Approved: ___________________________
Randy Johnson, Mayor
Attest: ___________________________
Cathie Simonovich, City Clerk

EXHIBIT A
1 SB 9 STANDARDS: PUBLIC HEALTH AND SAFETY

AND ENVIRONMENTAL RESOURCE PROTECTION
The following standards apply to SB 9 residential development and urban lot split as defined in Municipal Code Sections 17.55.020 and 16.78.020. The term “SB 9 project” as used below refers to a proposed project with an SB 9 residential development, an urban lot split, or both. Other standards and City requirements may also apply to an SB 9 project based on site-specific conditions and proposed project features.

A. Government Code Exclusions

1. Excluded Sites. An SB 9 project shall not be located on a site with any of the following environmental resources and hazards as specified in subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision (a) Government Code Section 65913.4 unless required mitigation, if allowed, is incorporated into the proposed project:
a. Prime farmland or farmland of statewide importance
b. Wetlands
c. Very high fire hazard severity zone
d. Hazardous waste site
e. Earthquake fault zone
f. 100-year flood zone
g. Regulatory floodway
h. Adopted natural community conservation plan
i. Habitat for protected species
j. Conservation easement
B. Fire District Requirements
An SB 9 project must comply with 1) the California Fire Code with modifications and amendments as adopted by the Scotts Valley Fire Protection District (“Fire District”); and 2) the Santa Cruz County Fire Prevention Officers Association Fire Prevention Standards as adopted by the Fire District. Before the City approves a building permit or parcel map for an SB 9 project, the applicant must submit documentation from the Fire District that the project complies with all applicable requirements. Fire District requirements that may affect the feasibility of an SB 9 project include the following:

1. Fire Hydrants: The number, spacing, and distance from the property. Pursuant to Municipal Code Section 17.55.040.C (Utility Connections), an SB 9 project must be connected to and served by a municipal water service provider (i.e., the Scotts Valley Water District or San Lorenzo Valley Water District). Private wells and tanks used to provide a water supply for fire protection are not allowed.

EXHIBIT A
2 2. Fire Flow: The flow rate and duration of a water supply that serves the project.

3. Fire Sprinklers: An automatic fire sprinkler system for each dwelling unit.

4. Access Road Dimensions: Minimum width, vertical clearance, and turning radius of roads providing fire apparatus access to the property.

5. Dead-End Access Roads: Maximum length of new dead-end roads/driveways serving the property.

C. City Fire Safety Standards
An SB 9 project must comply with the following City fire safety standards. These standards apply to an SB 9 project in addition to Fire District requirements. If Fire District requirements differ from City standards, the City will approve an SB 9 project only if it conforms with City requirements.

1. Emergency Vehicle Access – Roadway Width. An SB 9 project shall be served by roadways providing emergency vehicle access with a minimum 20-foot width. If an emergency vehicle must utilize a road less than 20 feet wide at any point to access the property, an SB 9 project is not allowed unless the applicant widens the roadway to comply with this standard.

2. Dead-end Street Length. An SB 9 project is prohibited on a dead-end street where the distance from the start of the street to the lot exceeds the length specified in Municipal Code Section

16.44.020.A. For example, an s SB 9 project is not allowed on a lot on a dead-end street in the Low Residential General Plan Land Use Category if the lot is more than 700 feet from the start of that dead-end street. If the lot on the dead-end street is less than 700 feet from the start of the street, a proposed lot split would be allowed if it complies with all other applicable standards.

3. Emergency Vehicle Access – Free of Obstructions. Required emergency vehicle access shall be maintained free of structures (e.g., locked gates) obstructing emergency vehicle access to development.

D. Geologic Hazard Standards

1. Hillside Residential Combining District. The following requirements apply to an SB 9 project within the HR Hillside Residential Combining District (Municipal Code Chapter 17.40). a. The applicant shall submit a site development plan and preliminary geologic and soils investigation report as required by Section 17.40.040.
b. On a building site created through an urban lot split, the following apply:
(1) The average slope of the lot shall not exceed 40 percent and the average slope of the proposed building envelope shall not exceed 25 percent. (2) A private access roadway to or on the site shall not exceed 150 feet in length or a grade of 15 percent along the length of the pavement.
c. On an existing lot of record, the following apply:

EXHIBIT A
3 (1) A structure or driveway shall not be located on a building pad with an average slope of 40 percent or more.
(2) A driveway to or on a building site shall not exceed a grade of 15 percent along the length of the pavement.
d. On all sites, the following apply:
(1) Portions of a site exceeding 30 percent slope shall not be graded. (2) Visible cut or fill slopes shall not exceed three horizontal to one vertical (3:1) (3) For units greater than 16 feet in height and/or with a floor area greater than 800 square feet, 1 foot shall be added to each side yard for each 1 foot of height above which the top plate line exceeds 15 feet in height.
(4) The clearance between ground floor levels and finish grade shall not exceed 4 feet.

Five feet is permitted if a landscape and irrigation plan which will screen the subfloor area is submitted with the application for a building permit and landscaping is installed prior to final inspection of the structure.

2. Landslide Hazard Areas. The following requirements apply to an SB 9 project in an area with known landslide deposits as shown in General Plan Figure SN-5 Landslide Deposits or on a site with known or suspected landslides as mapped by the United State Geological Survey. a. The applicant shall retain the services of a qualified geotechnical engineer or engineering geologist to prepare a design-level geotechnical investigation. The investigation shall identify project-specific foundation and structural design features needed to mitigate risks associated with landslide hazards.
b. The project shall be designed and constructed in accordance with the site preparation, foundation design, structural design, drainage, ground improvement performance testing, pavement design, and other recommendations in the design-level geotechnical investigation unless modified during construction, based on field conditions, by a qualified registered geotechnical or civil engineer.
c. Final grading plans shall be reviewed by a qualified registered geotechnical or civil engineer, and any resulting additional recommendations shall be incorporated into the project. d. All site preparation work shall be performed under the observation of the Geotechnical Engineering firm of record. All design and construction shall conform to the requirements of the latest California Building Code.
e. All structural design and construction shall be subject to final approval by the City of Scotts Valley Building Official.

EXHIBIT A
4 E. Circulation Safety Standards

1. Highway 17 Access Hazards. An SB 9 project is not permitted where vehicle access to the site is provided solely from Highway 17 at the following locations as identified in the Highway 17 Access Management Plan (California Department of Transportation, 2016):
a. Driveway at PM 6.712 (Map ID #24)
b. Crescent Drive (Map ID #25)
c. Driveway at PM 6.485 (Map ID #26)

AGENDA ITEM NO. 1
City of Scotts Valley

PLANNING COMMISSION

STAFF REPORT
Date: April 11, 2024
Location: City-wide
Environmental Not a project under the California Environmental Quality Act Status: (CEQA) pursuant to Government Code sections 65852.21(j) and 66411.7(n)
Request: Consideration of an amendment to Scotts Valley Municipal Code Title 16 (Subdivisions) and Title 17 (Zoning) to adopt a local ordinance implementing SB 9 (AZO24-001).

From: Ben Noble, Consultant
Approved: Taylor Bateman, Community Development Director, (831) 440-5630, [email protected]

STAFF RECOMMENDATION
It is recommended the Planning Commission conduct a public hearing, receive public comment, and adopt the resolution recommending the City Council:
• Amend the Scotts Valley Municipal Code Title 16 (Subdivisions) and Title 17 (Zoning) to adopt a local ordinance implementing SB 9; and • Adopt by resolution public health and safety and environmental resource protection standards for SB 9 projects.

BACKGROUND
Senate Bill (SB) 9 was adopted in 2021 and went into effect on January 1, 2022. This law requires local jurisdictions to allow the following in a single-family zoning district:
• Two-Unit Housing Development: Two primary dwelling units on one lot. “Primary dwelling units” are the main residential units on a property and are regulated differently than accessory dwelling units (ADUs). • Urban Lot Split: A one-time subdivision of an existing lot into two lots. Two units are allowed on each of the newly created lots.

AGENDA ITEM NO. 1
In Scotts Valley, an SB 9 project is allowed in the R-1, R-R, and R-MT zoning districts.

SB 9 projects are not allowed on sites with specified environmental resources and hazards, including wetlands, flood hazards, and habitat for protected species. Under SB 9 local jurisdictions must approve qualifying lot splits and dwelling units ministerially without a public hearing or discretionary review.

Prior to SB 9, only one primary dwelling unit per lot was allowed in the R-1, R-R, and RMT zoning districts. Now, up to four dwelling units are allowed on a lot in these zoning districts.

Local jurisdictions may apply objective zoning, subdivision, and design standards to SB 9 projects. Local SB 9 standards must comply with the following:
• Minimum Floor Area: No less than 800 square feet per unit. • Minimum Lot Size: No less than 1,200 square feet for lots created through an urban lot split.
• Minimum Setbacks: No greater than 4 feet from side and rear property lines for 800 square-foot units.
• Minimum On-Site Parking: No more than one parking space per unit, with no parking required in areas served by “high-quality transit” as defined in state law.

Currently there are no areas served by high-quality transit in Scotts Valley, though that may change in the future if bus service frequency increases.

As described below, SB 9 allows for a variety of development scenarios depending on whether the project includes a lot split and/or ADUs.

Scenarios Without a Lot Split
Figure 1 shows example SB 9 development scenarios without a lot split. SB 9 allows for up to two primary dwellings on the lot, one ADU, and one junior accessory dwelling unit (JADU). A JADU is unit that is no more than 500 square feet in size and contained entirely within a primary dwelling unit.

Scenarios With a Lot Split
Figure 2 shows example SB 9 development scenarios with a lot split. The lot split may create two side-by-side lots, or a rear lot behind a front lot. On each newly created parcel, SB 9 allows either two primary dwelling units or a primary dwelling unit and an ADU.

Many cities and counties in California adopt a local ordinance to implement SB 9. A local SB 9 ordinance clarifies requirements in state law and establishes additional objective standards to address unique local issues and development preferences.

AGENDA ITEM NO. 1
Figure 1

AGENDA ITEM NO. 1
Figure 2

AGENDA ITEM NO. 1
Planning Commission Study Session
The Planning Commission held a study session on March 14, 2024 to provide feedback on an approach to address important issues in an ordinance to implement SB 9. The Planning Commission provided feedback on issues related to building height, unit size, garage parking, vehicle access/shared driveways, street frontage/flag lots, and privacy.

The staff report from the March 14, 2024 meeting is provided as Attachment 2. The proposed local SB 9 ordinance, described below, is consistent with Planning Commission feedback received at this study session.

PROPOSED LOCAL SB 9 ORDINANCE
Based on Planning Commission input at the March 14, 2024 study session, City staff and consultants prepared amendments to the Scotts Valley Municipal Code to locally implement SB 9. This proposed ordinance consists of a new Chapter 17.55 (SB 9 Residential Development) to be added to Title 17 (Zoning), and a new Chapter 16.78 (Urban Lot Splits) to be added to Title 16 (Subdivisions). Chapter 17.55 is attached to this staff report as Exhibit 1 to Attachment 1. Chapter 16.78 can be found as Exhibit 2 to Attachment 1.

Chapter 17.55 (SB 9 Residential Development)
Chapter 17.55 contains requirements for new units created using SB 9. This chapter identifies the permitting process for SB 9 units, general requirements for these units, development standards, and other objective design standards.

Permitting Process
Section 17.55.030 identifies permits required, eligible projects and approval criteria for SB 9 projects. These provisions are all required by state law, including the following:
• Permits Required: SB 9 residential development requires City approval of a building permit. No public hearing or discretionary review is required. • Allowed Zoning Districts: SB 9 projects are allowed only in single-family zoning districts. In Scotts Valley these are the R-1 Single-Family Residential, R-R Residential-Rural, or R-MT Residential-Mountain zoning districts. • Environmental Resources and Hazards: SB 9 projects are not allowed on sites with specified environmental resources and hazards, including wetlands, flood hazards, very high fire hazard areas, and habitat for protected species. • Affordable and Rental Housing: SB 9 projects may not demolish or alter deedrestricted affordable housing or rental units. • Basis for Denial: If an SB 9 project complies with all requirements, the City can deny the application only if the building official finds that the proposed development would have a specific adverse impact on the public health and safety or physical environment that cannot be mitigated.

AGENDA ITEM NO. 1
General Requirements
As required by state law, Section 17.55.040 specifies the following:
• Number of Units: An SB 9 project may create up to four dwelling units on an existing lot. For a project without an urban lot split, two primary dwelling units are allowed plus an accessory dwelling unit (ADU) and junior accessory dwelling units (JADU). For a project with an urban lot split, two primary units or one primary dwelling and one ADU are allowed on each newly created parcel. • Utility Connections: Each primary dwelling unit must be served by a separate utility connection for water, sewer, and electrical services. • Vacation Rentals: An SB 9 unit may not be rented for a term of less than 31 days.
• Public Health and Safety: An SB 9 project must comply with public health and safety standards adopted separately by City Council resolution. See discussion on page 7 of the staff report for additional information.

Development Standards
State law requires the City to allow SB 9 projects with a minimum floor area of 800 square feet per unit, 4-foot setbacks from side and rear property lines, and one parking space per unit. The City may establish standards that are more permissive than these minimum requirements. The City may also establish additional development standards provided that these standards do not physically preclude two units of at least 800 square feet per lot. At the March 14 2024 study session, the Planning Commission provided feedback on standards for building height, unit size, parking, and vehicle access/shared driveways. Based on this feedback, Section 17.55.050 requires the following:
• Building Height: If an SB 9 unit complies with the minimum yard requirements of the zoning district, the maximum building height is 25 feet (two stories). If an SB 9 unit does not comply with the minimum yard requirements, the maximum building height is 16 feet.
• Unit Size: If an SB 9 unit complies with the minimum yard requirements of the zoning district, the maximum floor area is 1,250 square feet for the unit. If an SB 9 unit does not comply with the minimum yard requirements, the maximum floor area is 800 square feet.
• Yards: SB 9 units must be setback 4 feet from side and rear lot lines. Minimum front yards are as required in the applicable zoning district. An SB 9 unit that complies with minimum yard requirements of the zoning districts are allowed greater height and size than a unit that does not comply. • Parking: One parking space is required per unit. Uncovered surface parking is allowed for SB 9 projects where there are two or fewer new units (including ADUs). Garage parking is required for the third or fourth new unit if proposed. A landscape buffer is required for parking areas with three or more spaces.

AGENDA ITEM NO. 1
• Vehicle Access/Shared Driveways: On vacant lots, only one driveway curb cut with a maximum width of 20 feet is allowed. Two lots created through an urban lot split must share one driveway with access easements recorded as necessary.

Exceptions are allowed when needed for emergency vehicle access or other unusual circumstances.

An SB 9 project also must comply with other City standards and requirements of the applicable zoning district and Scotts Valley Municipal Code (e.g., maximum site coverage) provided these standards do not physically preclude two units of at least 800 square feet per lot.

Objective Design Standards
SB 9 allows local jurisdiction to impose objective design standards on new units, provided these standards do not physically preclude two units of at least 800 square feet per lot. Section 17.55.060 establishes the following objective design standards:
• Multi-Unit Residential Design Standards. An SB 9 residential development that creates two or more new primary dwelling units must comply with the City’s MultiUnit Residential Design Standards. • Single Unit Projects. An SB 9 residential development with one new development must comply with design standards to promote design compatibility with an existing dwelling on the lot.
• Accessory Dwelling Units. A new accessory dwelling unit (ADU) included in an SB 9 residential development must comply with the same design requirements as apply to an ADU that is not established as part of an SB 9 project. • Neighbor Privacy: If an SB 9 unit does not comply with the minimum side and rear yard requirements of the zoning district, windows on the wall that faces an adjacent residential use must be 5-foot minimum sill height above the finished floor, clerestory, or opaque/frosted glass. Second-story exterior decks and balconies and rooftop decks may not face an interior side or rear yard that abuts an adjacent residential use.

Chapter 16.78 (Urban Lot Splits)
Chapter 16.78 establishes requirements for a one-time subdivision of an existing lot into two lots (“urban lot split”). This chapter is in Title 16 (Subdivisions) of the Scotts Valley Municipal Code together with other subdivision requirements. Chapter 16.78 contains urban lot split permit requirements, general requirements, and objective subdivision design standards.

AGENDA ITEM NO. 1
Permitting Process
The eligibility requirements and approval criteria for SB 9 residential development in Chapter 17.55 apply to urban lot splits. In addition, Section 16.78.030 also requires the following:
• Parcel Map. A parcel map is required for all urban lot splits pursuant to the Subdivision Map Act.
• Existing Parcel Size. The area of the existing parcel must be 2,400 square feet or more.
• No Prior Urban Lot Split. If a parcel was established through a prior urban lot split, it cannot be further subdivided.
• Subdivision Map Act Compliance. The urban lot split must conform to all applicable objective requirements of the Subdivision Map. • Conditions of Approval. The City may not require dedications of rights of way, off-site improvements, or correction of nonconforming zoning conditions.

General Requirements
An urban lot split must allow for SB 9 units that conform to the general requirements and development standards in Chapter 17.55, including minimum setback and parking requirements. As required by state law, Section 16.78.040 also specifies the following:
• Number of New Parcels. An urban lot split may create no more than two new parcels.
• New Parcel Size. The area of each newly created parcel must be at least 1,200 square feet. The newly created parcel must be no smaller than 40 percent of the parcel area of the original parcel. SB 9 requires the two newly created parcels be roughly proportional in size.
• Owner Occupancy Affidavit. The applicant must sign an affidavit stating the intent to occupy one of the housing units as their principal residence for a minimum of three years.

Given development allowed on newly created SB 9 lots, Section 16.78.040 states that Minimum lot area, width, depth and density standards in the applicable zoning district do not apply to an urban lot split.

Objective Standards
Parcels created by an urban lot split must comply with the Multi-Unit Residential Design Standards and applicable objective standards in Municipal Code Title 17 (Zoning) and Title 16 (Subdivisions). Newly created parcels must also comply with the following subdivision design standards:

AGENDA ITEM NO. 1
• Parcel Line Angles. New parcel lines that abut a street must maintain right angles to streets or radial to the centerline of curved streets or be parallel to existing parcel lines.
• Street Frontage/Flag Lots: On vacant lots with an urban lot split, flag lots and side-by-side lots are both allowed. Flag lots are allowed only to accommodate development more consistent with the existing neighborhood character or when physically necessary to accommodate the proposed units. When allowed, require SB 9 flag lots to comply with existing objective flag lot standards in SVMC Section 17.46.060.F. The minimum street frontage for side-by-side lots is 30 feet.

As required by state law, the City may not impost any objective subdivision standard that would physically preclude two units of at least 800 square feet per lot.

PUBLIC HEALTH AND SAFETY AND ENVIRONMENTAL RESOURCE PROTECTION

STANDARDS
As described above, an SB 9 project must comply with public health and safety and environmental resource protection standards adopted separately by City Council resolution. Proposed standards are provided in Exhibit 3 to Attachment 1. These standards address public safety issues unique to Scotts Valley related to fire, geologic, and roadway safety hazards. The proposed standards also reference criteria in SB 9 that exclude development on sites with specified environmental resources. The proposed standards would be adopted by City Council resolution rather than incorporated into the Municipal Code so that they could be amended more easily over time.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
Pursuant to Government Code sections 65852.21(j) and 66411.7(n), the City may adopt an ordinance to implement the provisions of Government Code sections 65852.21 and 66411.7, and such an ordinance shall not be considered a project under the California Environmental Quality Act (“CEQA”).

PUBLIC NOTICE
On March 29, 2024, public hearing notices were posted at City Hall, the Scotts Valley Public Works Building, and the Scotts Valley Senior Center, consistent with State law.

AGENDA ITEM NO. 1

ATTACHMENTS

1. Resolution No. ___ recommending the City Council adopt amendment to Scotts Valley Municipal Code Title 16 (Subdivisions) and Title 17 (Zoning) to adopt a local ordinance implementing SB 9 and to adopt by resolution SB 9 Public Health and Safety and Environmental Resource Protection Standards.

Exhibit 1: Chapter 17.55 (SB 9 Residential Development) Exhibit 2: Chapter 16.78 (Urban Lot Splits)
Exhibit 3: SB 9 Public Health and Safety and Environmental Resource Protection Standards

2. March 14, 2024 Planning Commission Study Session Staff Report and Attachments

RESOLUTION NO. _____

RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF SCOTTS

VALLEY RECOMMENDING THE CITY COUNCIL AMEND THE SCOTTS VALLEY MUNICIPAL CODE TITLE 16 (SUBDIVISIONS) AND TITLE 17 (ZONING) TO ADOPT A LOCAL ORDINANCE IMPLEMENTING SB 9
WHEREAS, SB-9 (Chapter 162, Statutes of 2021) enacted amendments to Section 66452.6 and added Sections 65852.21 and 66411.7 to the Government Code, effective January 1, 2022; and
WHEREAS, Government Code Section 65852.21 requires local agencies to allow two primary dwellings on one lot in single-family zoning districts if the project meets specified requirements;
WHEREAS, Government Code Section 66411.7 requires local agencies to allow an urban lot split in single-family zoning districts with two dwelling units allowed on each newly created lot if the project meets specified requirements; WHEREAS, Government Code Sections 65852.21(b) and 66411.7(b) authorizes local agencies to impose objective zoning standards, objective subdivision standards, and objective design review standards that do not conflict with the requirement of SB-9; WHEREAS, the Planning Commission held a study session on March 14, 2023 to provide input on an approach to address important issues in a local ordinance to implement SB9; WHEREAS, City staff used Planning Commission direction to prepare Chapter 17.55 (SB 9 Residential Development) to be added to Title 17 (Zoning) of the City of Scotts Valley Municipal Code, and Chapter 16.78 (Urban Lot Splits) to be added to Title 16 (Subdivisions) of the City of Scotts Valley Municipal Code; WHEREAS, pursuant to Government Code sections 65852.21(j) and 66411.7(n), the City may adopt an ordinance to implement the provisions of Government Code sections 65852.21 and 66411.7, and such an ordinance shall not be considered a project under the California Environmental Quality Act (“CEQA”);
WHEREAS, the proposed new Chapter 17.55 (SB 9 Residential Development) and Chapter 16.78 (Urban Lot Splits) and the Public Health and Safety and Environmental Resource Protection SB 9 Standards to implement SB-9 were reviewed by the Planning Commission at regularly scheduled and noticed meeting on Thursday, April 11, 2024.

NOW, THEREFORE, BE IT RESOLVED by Planning Commission as follows:

1. It is hereby recommended that the City Council adopt Chapter 17.55 (SB 9 Residential Development) and Chapter 16.78 (Urban Lot Splits) to implement SB9 set forth in Exhibits 1 and 2 attached hereto and incorporated herein.

2. It is hereby recommended that the City Council adopt the Public Health and Safety and Environmental Resource Protection SB 9 Standards set forth in Exhibit 3 attached hereto and incorporated herein.

The above and foregoing resolution was duly and regularly adopted and passed by the Planning Commission of the City of Scotts Valley at a regular meeting held on the 11 th
day of April, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________________________
Lori Gentile, Chair
___________________________________________
Taylor Bateman, Community Development Director

EXHIBIT 1

CHAPTER 17.55 – SB 9 RESIDENTIAL DEVELOPMENT
Sections:

17.55.010 Purpose and Intent

17.55.020 Definitions

17.55.030 Permitting Process

17.55.040 General Requirements

17.55.050 Development Standards

17.55.060 Objective Design Standards

17.55.070 Deed Restrictions

17.55.010 Purpose and Intent
This chapter contains requirements for SB 9 residential developments pursuant to Government Code Section 65852.21. These requirements are necessary to preserve the public health, safety and general welfare, and to promote orderly growth and development. In cases where a requirement in this chapter directly conflicts with Government Code Section 65852.21, the Government Code governs.

17.55.020 Definitions
A. SB 9 Residential Development. A residential project on a parcel within a single-family residential zoning district proposed pursuant to Government Code Section 65852.21 B. Urban Lot Split. The subdivision of an existing parcel into two parcels within a single-family residential zoning district proposed pursuant to Government Code Section 66411.7 and Municipal Code Chapter 16.78 (Urban Lot Splits).

17.55.030 Permitting Process
A. Building Permit. An SB 9 residential development requires City approval of a building permit.

B. Ministerial Approval. The City shall ministerially approve a building permit for an SB 9 residential development if the application complies with all requirements of this chapter. No public hearing or discretionary review is required.

C. Urban Lot Splits. An SB 9 residential development that includes an urban lot split requires City approval of a parcel map pursuant to Municipal Code Chapter 16.78 (Urban Lot Splits).

D. Eligibility. The City shall accept an application for an SB 9 residential development only if the project complies with the following requirements.

1. Zoning District. The development is located in the R-1 Single-Family Residential, R-R Residential-Rural, or R-MT Residential-Mountain zoning district.

EXHIBIT 1

2. Compliance with Chapter. The development complies with all applicable requirements of this chapter.

3. Environmental Resources and Hazards. The development satisfies the requirements of Government Code subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision (a) of Section 65913.4, which prohibits development on sites subject to specified environmental resources and hazards.

4. Affordable and Rental Housing. The development will not require demolition or alteration of any of the types of housing identified in Government Code paragraph (3) of subdivision (a) of Section 65852.21.

5. Historic Resources. The development is not located within a historic district or property included on the State Historic Resources Inventory, as defined in Public Resources Code Section 5020.1.

E. Basis for Denial.

1. The City shall deny an application for an SB 9 residential development if either of the following is found:
a. The development fails to comply with any requirement in this chapter. Any such requirement that is the basis for denial shall be specified by the City in writing. b. The City’s Building Official makes a written finding, based upon a preponderance of the evidence, that the proposed development would have a specific, adverse impact, as defined and determined in paragraph (2) of subdivision (d) of Government Code Section 65589.5, upon public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact.

2. The City shall not deny an SB 9 residential development solely because it conflicts with the City’s density limitations for the applicable zoning district.

17.55.040 General Requirements
A. Number of Primary Dwelling Units.

1. A maximum of two primary dwelling units are allowed on a parcel.

2. If a parcel is subdivided pursuant to Municipal Code Chapter 16.78 (Urban Lot Splits), a maximum of two primary dwelling units are allowed on each newly created parcel. Up to four units are allowed on the two parcels combined.

B. Accessory Dwelling Units.

1. Projects with Urban Lot Split. The following accessory dwelling unit (ADU) rules apply to a parcel created through an urban lot split as provided in Chapter 16.60 (Urban Lot Splits) a. If the parcel contains one primary dwelling unit, one ADU or Junior ADU is also allowed on the parcel.

EXHIBIT 1

b. If the parcel contains two primary dwelling units, an ADU or Junior ADU is not allowed on the parcel.

2. Projects Without Urban Lot Split. Where a parcel has not been subdivided as provided in Chapter 16.78 (Urban Lot Split), one ADU and/or JADU is allowed on the parcel in addition to the two primary dwelling units.

C. Utility Connections.

1. Each primary dwelling unit shall be served by a separate utility connection for water, sewer, gas, and electrical services.

2. The City shall condition approval of a dwelling unit on the dedication of any easements deemed necessary to provide public services to the unit and access to the public right-ofway.

D. Residential Uses Only.

1. The primary use of a dwelling unit must be residential.

2. Home occupations consistent with Section 17.50.040 (Home Occupations) and other accessory uses are permitted in a dwelling unit.

E. Vacation Rentals. A dwelling unit may not be rented for a term of less than 31 days.

F. Existing Nonconformities. Establishing a dwelling unit shall not require the correction of an existing legal nonconforming zoning condition on the property.

G. Public Health and Safety. An SB 9 residential development shall comply with the City of Scotts Valley SB 9 Public Health and Safety and Environmental Resource Protection Standards, which are adopted by City Council resolution and may be amended from time to time.

H. Municipal Code Compliance.

1. An SB 9 development shall comply with all applicable provisions of the Municipal Code unless otherwise specified in this chapter.

2. In case of conflict between this chapter and other provisions in the Municipal Code, this chapter governs.

3. The City shall not impose any objective Municipal Code standard that would physically preclude the construction of two units on either of the resulting parcels or that would result in a unit size of less than 800 square feet. The Community Development Director shall grant an exception to the applicable standard to the minimum extent necessary to comply with this section.

17.55.050 Development Standards
A. Building Height.

1. For an SB9 residential development that complies with the minimum yard requirements of the applicable zoning district and combining district, the maximum building height is 25 feet.

EXHIBIT 1

2. For an SB9 residential development that does not comply with the minimum yard requirements of the applicable zoning district and combining district, the maximum building height is 16 feet.

B. Unit Size.

1. For an SB9 residential development that complies with the minimum yard requirements of the applicable zoning district and combining district, the maximum unit size is 1,250 square feet per unit.

2. For an SB9 residential development that does not comply with the minimum yard requirements of the applicable zoning district and combining district, the maximum unit size is 800 square feet per unit.

C. Yards.

1. Minimum yards for an SB 9 residential development are as follows:
a. Front: As required in the applicable zoning district b. Side: 4 feet, except that no yard is required for a new side lot line shared between two parcels created through an urban lot split.
c. Rear: 4 feet.

2. As provided in A and B above, an SB 9 residential development that complies with the minimum yard requirement for a single-family dwelling in the applicable zoning district is eligible for greater building height and unit size than is allowed for SB9 residential development that does not comply with the zoning district minimum yard requirement.

3. Notwithstanding Paragraph 1 above, no setback is required for an existing structure or a structure constructed in the same location and to the same dimensions as an existing structure.

D. Separation Between Dwelling Units.

1. No minimum separation is required between dwelling units on a parcel it the structures meet building code safety standards.

2. Dwelling units may be connected if the structures meet building code safety standards and are sufficient to allow a separate conveyance.

3. For purposes of this chapter, “sufficient for separate conveyance” means that each attached or adjacent dwelling unit is constructed in a manner adequate to allow for the separate sale of each unit in a common interest development as defined in Civil Code Section 1351 (including a residential condominium, planned development, stock cooperative, or community apartment project), or into any other ownership type in which the dwelling units may be sold individually.

E. Parking.

1. Required Parking. A minimum of one off-street parking space is required per dwelling unit except as provided in Paragraph 2 below.

EXHIBIT 1

2. Exceptions to Required Parking. No off-street parking is required in the following cases:
a. The parcel is located within one-half mile walking distance of either a high-quality transit corridor, as defined in subdivision (b) of Section 21155 of the Public Resources Code, or a major transit stop, as defined in Section 21064.3 of the Public Resources Code.
b. There is a car share vehicle located within one block of the parcel. A car share vehicle means a motor vehicle that is operated as part of a regional fleet by a public or private car sharing company or organization that meet all the following criteria:
(1) Provides hourly or daily service;
(2) Vehicle reservations are processed and paid for using an on-line system; (3) Vehicles can be accessed where they are parked without having to go to a different physical location to execute a contract and/or pick up the keys; and (4) Fleet has more than five cars in Scotts Valley and more than 20 cars in Santa Cruz County.

3. Location on Lot. As required by Section 17.44.030(J), driveways and parking spaces shall not proportionately occupy more than 300 square feet for each 10 feet of required front yard setback.

4. Garages. Required parking spaces may be uncovered for an SB 9 project with two or fewer new units, including accessory dwelling units. Required parking shall be in a garage for the third or fourth unit in an SB 9 project.

5. Landscape Buffer.
a. Where a parking area with three or more spaces is located across a street or alley from or immediately adjacent to a residential district, a landscape strip not less than 5 feet in depth shall be planted and permanently maintained along the abutting property line of the parking area.
b. The landscape strip shall contain a row of landscaping with a minimum planting height of 36 inches.
c. Landscaping shall comply with intersection and driveway vision clearance requirements in Section 17.46.110.E.

F. Driveways.

1. Vacant Lots.
a. For an SB 9 development on a vacant lot, no more than one driveway curb cut is allowed with a maximum width of 20 feet. Units on two lots created through an urban lot split must share one driveway with access easements recorded as necessary. b. The Community Development Director may grant an exception to this requirement when needed for emergency vehicle access or other unusual circumstances.

2. Non-Vacant Lots.

EXHIBIT 1

a. For an SB 9 project on a lot with an existing home, two driveway curb cuts are allowed only if the existing site layout or other physical constraints physically precludes shared use of a single driveway curb cut.
b. The maximum width of a second curb cut where allowed is 12 feet.

17.55.060 Objective Design Standards
A. Multi-Unit Residential Design Standards.

1. An SB 9 residential development that creates two or more new primary dwelling units shall comply with the Multi-Unit Residential Design Standards, which are adopted by City Council resolution and may be amended from time to time.

2. If one or more new primary dwelling units are added to a lot with an existing SB 9 residential development, the new dwelling unit(s) shall comply with the Multi-Unit Residential Design Standards.

B. “Faces” Defined. As used in this section, the term “faces” means:

1. The building feature is parallel or substantially parallel to the street or property line; and

2. There is no other building located between the building feature and the street or property line.

C. Single Unit Projects. If an SB 9 residential development creates one new primary dwelling on a lot with an existing dwelling that was not previously established through an SB 9 residential development, the following design standards apply.

1. Garage Frontage. Where a dwelling with an internal or attached garage is located on the front half of the lot and the garage door faces a street, the garage frontage including the door width shall not exceed 50 percent of the width of the front facade of the building.

2. Massing. A building wall that faces a street or an adjacent residential use shall not run in a continuous plane of more than 25 feet without one or more of the following treatments:
a. A change in wall plane with a minimum of 4 feet in depth for the facade. b. A front porch or other covered entry feature with a minimum depth of 3 feet and width of 6 feet providing access to the dwelling’s primary entrance. c. An upper story stepback of at least 6 feet in depth for at least 80 percent of the street facing building wall.
d. A protruding window (such as a bay window) of at least 2 feet in depth.

3. Articulation. A building wall that faces a street or an adjacent residential use shall not run in a continuous plane of more than 15 feet without one of the following treatments included on the facade at every building story:
a. Window.
b. Entry door.

EXHIBIT 1

c. Two or more visibly contrasting primary materials and/or colors. d. Wall mounted trellises for climbing plants.

4. Entries. Primary dwelling entrances must include one of the following:
a. A recess in the building wall with a minimum width of 4 feet and depth of 3 feet. b. A covered porch, providing access to the entry, with a minimum dimension of 5 feet by 5 feet.

5. Roof Forms. Rooflines 25 feet or longer that face a street or an adjacent residential use shall be articulated with recessed or projecting gabled roof elements, roof dormers, changes in roof heights, changes in direction or pitch of roof slopes, and other similar methods.

6. Windows. Windows that face a street or an adjacent residential use shall comply with one of the following:
a. All windows shall feature built up profile trim/framing. Trim/framing must project at least 2 inches from the building wall with material that visually contrasts from the building wall.
b. Window glass shall be inset a minimum of 2 inches from the exterior wall or frame surface to add relief to the wall surface.

7. Exterior Materials. The primary wall finish material shall be wood, wood shingle, stone, brick, stucco, fiber cement or other cementitious material, or stone. T1-11 siding and all grooved or patterned wood panel or composite wood panel siding are prohibited.

8. Private Open Space. Each dwelling unit shall have at least 100 square feet of private open space. Required private open space shall comply with the following standards:
a. The open space shall be directly accessible from the dwelling unit. b. Balconies shall have a minimum dimension of 6 feet in depth and width and a minimum floor area of 50 square feet.
c. Patios shall have a minimum dimension of 8 feet in depth and width and a minimum floor area of 64 square feet.
d. Open space may be covered but not fully enclosed. If covered, the minimum floor to ceiling height is 8.5 feet.
e. Ground level private open space shall be screened or buffered from adjacent private or common open space and dwellings by landscaping, fencing, walls, trellises, or other screening elements.

B. Accessory Dwelling Units. A new accessory dwelling unit (ADU) included in an SB 9 residential development shall comply with the same design requirements as apply to an ADU that is not established as part of an SB 9 project.

C. Neighbor Privacy.

EXHIBIT 1

1. If a building wall faces an adjacent residential use and does not comply with the minimum interior side or rear yard requirements of the applicable zoning district or combining district, windows on the wall must be:
a. 5-foot minimum sill height above the finished floor; b. Clerestory; or
c. Opaque/frosted glass.

2. Second-story exterior decks and balconies may not face an interior side or rear yard that abuts an adjacent residential use.

3. No portion of a rooftop deck may be closer than 25 feet from an interior side or rear yard that abuts an adjacent residential use.

17.55.020 Deed Restrictions
A. Before obtaining a building permit for an SB 9 residential development, the property owner shall file with the County Recorder a declaration of restrictions containing a reference to the deed under which the property was acquired by the current owner. The deed restriction shall state that:

1. The maximum size of the dwelling unit is limited to:
a. 1,250 square feet for development that complies with the minimum yard requirements of the applicable zoning district and combining district; and b. 800 square feet for development that does not comply with the minimum yard requirements of the applicable zoning district and combining district.

2. The dwelling unit may not be rented for a term of less than 31 days.

B. The above declarations are binding upon any successor in ownership of the property. Lack of compliance shall be cause for code enforcement.

C. The deed restriction shall lapse upon removal of all dwelling units established under this chapter.

EXHIBIT 2

CHAPTER 16.78 – URBAN LOT SPLITS
Sections:

16.78.010 Purpose and Intent

16.78.020 Definitions

16.78.030 Permitting Process

16.78.040 General Requirements

16.78.050 Objective Standards

16.78.060 Deed Restrictions

16.78.010 Purpose and Intent
This chapter contains requirements for urban lot splits pursuant to Government Code Section 66411.7. These requirements are necessary to preserve public health, safety, and general welfare, and to promote orderly growth and development. In cases where a requirement in this chapter directly conflicts with Government Code Section 66411.7, the Government Code governs.

16.78.020 Definitions
A. SB 9 Residential Development. A residential project on a parcel within a single-family residential zoning district proposed pursuant to Government Code Section 65852.21 and Municipal Code Chapter 17.55 (SB 9 Residential Development).

B. Urban Lot Split. The subdivision of an existing parcel into two parcels within a single-family residential zoning district proposed pursuant to Government Code Section 66411.7.

16.78.030 Permitting Process
A. Parcel Map Required. A parcel map is required for all urban lot splits pursuant to Government Code Section 66411.7.

B. Eligibility. The City shall accept a parcel map application for an urban lot split only if the application complies with all of the following requirements.

1. Zoning District. The existing parcel is located in the R-1 Single-Family Residential, R-R Residential-Rural, or R-MT Residential-Mountain zoning district.

2. Existing Parcel Size. The area of the existing parcel is 2,400 square feet or more.

3. Environmental Resources and Hazards. The parcel satisfies the requirements of Government Code subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision (a) of Section 65913.4, which prohibits development on sites subject to specified environmental resources and hazards.

EXIBIT 2

4. Affordable and Rental Housing. The proposed urban lot split would not require demolition or alteration of any of the types of housing identified in Government Code paragraph (3) of subdivision (a) of Section 65852.21.

5. Historic Resources. The parcel is not located within a historic district or property included on the State Historic Resources Inventory, as defined in Section 5020.1 of the Public Resources Code.

6. No Prior Urban Lot Split.
a. The parcel was not established through a prior urban lot split. b. Neither the owner of the parcel being subdivided nor any person acting in concert with the owner has previously subdivided an adjacent parcel using an urban lot.

C. Application Contents. A parcel map application for an urban lot split must be filed with the City on an official City application form. Applications shall be filed with all required fees, information, and materials as specified by the City.

D. Ministerial Approval. The City shall ministerially approve a parcel map for an urban lot split if the application complies with all requirements of this chapter. No public hearing or discretionary review is required.

E. Subdivision Map Act Compliance. The City shall approve an urban lot split only if it conforms to all applicable objective requirements of the Subdivision Map except as otherwise provided in this chapter.

F. Basis for Denial.

1. The City shall deny the urban lot split if either of the following is found:
a. The urban lot split fails to comply with any requirement in this chapter. Any such requirement that is the basis for denial shall be specified by the City in writing. b. The building official makes a written finding, based upon a preponderance of the evidence, that the proposed subdivision would have a specific, adverse impact, as defined and determined in paragraph (2) of subdivision (d) of Government Code Section 65589.5 of the Government Code, upon public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact.

2. The City shall not deny an urban lot split solely because it proposes adjacent or connected structures provided that the structures meet building code safety standards and are sufficient to allow separate conveyance.

3. For purposes of this chapter, “sufficient for separate conveyance” means that each attached or adjacent dwelling unit is constructed in a manner adequate to allow for the separate sale of each unit in a common interest development as defined in Civil Code Section 1351 (including a residential condominium, planned development, stock cooperative, or community apartment project), or into any other ownership type in which the dwelling units may be sold individually.

EXIBIT 2

G. Conditions of Approval.

1. Easements. The City shall condition parcel map approval on the dedication of any easements deemed necessary for the provision of public services to the proposed parcels and any easements deemed necessary for access to the public right-of-way.

2. Dedications and Improvements. The City shall not require dedications of rights-of-way or the construction of offsite improvements for the parcels being created as a condition of parcel map approval.

3. Nonconforming Zoning Conditions. The City may not require the correction of nonconforming zoning conditions on the parcel a condition of parcel map approval.

16.78.040 General Requirements
A. Number of New Parcels. An urban lot split may create no more than two new parcels.

B. New Parcel Size. The area of each newly created parcel must be:

1. At least 1,200 square feet; and

2. No smaller than 40 percent of the parcel area of the original parcel.

C. Lot Dimensions and Density. Minimum lot area, width, depth and density standards in the applicable zoning district do not apply to an urban lot split.

D. Maximum Number of Dwelling Units. No more than two dwelling units, including any accessory dwelling units or junior accessory dwelling units, are permitted on a parcel created by an urban lot split.

E. Access to Public Right-of-way. The newly created parcels shall provide access to the public right-of-way sufficient to allow development on the parcel to comply with all applicable property access requirements under the California Fire Code section 503 (Fire Apparatus Access Roads) and California Code Regulations Title 14, section 1273.00 et seq. (Intent).

F. Setbacks. An SB 9 residential development on a parcel created by an urban lot split shall comply with the following setback requirements:

1. Minimum Yards:
a. Front: As required in the applicable zoning district b. Side: 4 feet, except that no yard is required for a new side lot line shared between two parcels created through the urban lot split.
c. Rear: 4 feet.

2. As provided in 17.55.050, an SB 9 residential development that complies with the minimum yard requirement for a single-family dwelling in the applicable zoning district is eligible for greater building height and unit size than is allowed for SB9 residential development that does not comply with the zoning district minimum yard requirement.

EXIBIT 2

3. Notwithstanding Paragraph 1 above, no setback is required for an existing structure or a structure reconstructed in the same location and to the same dimensions as an existing structure.

G. Parking. An SB 9 residential development on a parcel created by an urban lot split shall comply with the following parking requirements:

1. Required Parking. A minimum of one off-street parking space shall be provided for each dwelling unit except as provided in Paragraph 2 below.

2. Exceptions to Required Parking. No off-street parking is required in the following cases:
a. The parcel is located within one-half mile walking distance of either a high-quality transit corridor, as defined in subdivision (b) of Section 21155 of the Public Resources Code, or a major transit stop, as defined in Section 21064.3 of the Public Resources Code.
b. There is a car share vehicle located within one block of the parcel. A car share vehicle means a motor vehicle that is operated as part of a regional fleet by a public or private car sharing company or organization that meet all the following criteria:
(1) Provides hourly or daily service;
(2) Vehicle reservations are processed and paid for using an on-line system; (3) Vehicles can be accessed where they are parked without having to go to a different physical location to execute a contract and/or pick up the keys; and (4) Fleet has more than five cars in Scotts Valley and more than twenty cars in Santa Cruz County.

3. Location on Lot. As required by Section 17.44.030(J), driveways and parking spaces shall not proportionately occupy more than 300 square feet for each 10 feet of required front yard setback.

4. Garages. Required parking spaces may be uncovered for an SB 9 project with two or fewer new units, including accessory dwelling units. Required parking shall be in a garage for the third or fourth unit in an SB 9 project.

5. Landscape Buffer.
a. Where a parking area with three or more spaces is located across a street or alley from or immediately adjacent to a residential district, a landscape strip not less than 5 feet in depth shall be planted and permanently maintained along the abutting property line of the parking area.
b. The landscape strip shall contain a row of landscaping with a minimum planting height of 36 inches.
c. Landscaping shall comply with intersection and driveway vision clearance requirements in Zoning Code Section 17.46.110.E.

EXIBIT 2

H. Residential Land Use. The primary use of an SB 9 development on a parcel created by an urban lot split must be residential.

I. Owner Occupancy Affidavit.

1. The applicant for an urban lot split must sign an affidavit stating that the applicant intends to occupy one of the housing units as their principal residence for a minimum of three years from the date of the approval of the urban lot split.

2. Owner-occupancy is not required if the owner is a community land trust or qualified nonprofit corporation under Sections 214.15 or 402.1 of the Revenue and Taxation Code.

J. Vacation Rentals Prohibited. An SB 9 residential development on a parcel created by an urban lot split may not be rented for a term of less than 31 days.

K. Public Health and Safety. An urban lot split shall comply with the City of Scotts Valley SB 9 Public Health and Safety and Environmental Resource Protection Standards, which are adopted by City Council resolution and may be amended from time to time.

L. Municipal Code Compliance.

1. An urban lot split shall comply with all applicable provisions of the Municipal Code unless otherwise specified in this chapter.

2. In case of conflict between this chapter and other provisions in the Municipal Code, this chapter governs.

3. The City shall not impose any objective Municipal Code standard that would physically preclude the construction of two units on either of the resulting parcels or that would result in a unit size of less than 800 square feet. The Community Development Director shall grant an exception to the applicable standard to the minimum extent necessary to comply with this section.

16.78.050 Objective Standards
A. Multi-Unit Residential Design Standards. Parcels created by an urban lot split shall comply with the Multi-Unit Residential Design Standards, which are adopted by City Council resolution and may be amended from time to time.

B. Parcel Line Angles. New parcel lines that abut a street shall maintain right angles to streets or radial to the centerline of curved streets, or be parallel to existing parcel lines.

C. Street Frontage/Flag Lots.

1. For an urban lot split on a vacant lot that meets the zoning district minimum lot width, each newly created parcel shall have street frontage no less than 40 percent of the street frontage of the original parcel.

2. For an urban lot split on a vacant lot that does not meets the zoning district minimum lot width or on a lot with an existing home, the newly created parcels shall comply with one of the following:

EXIBIT 2

a. Each newly created parcel has street frontage no less than 40 percent of the street frontage of the original parcel; or
b. The urban lot split creates a flag lot consistent with existing objective flag lot standards in SVMC Section 17.46.060.F. City Council approval of the flag lot is not required.

D. Allowed Exceptions.

1. The City shall not impose any objective standards pursuant to this section that would physically preclude the construction of two units on either of the resulting parcels or that would result in a unit size of less than 800 square feet.

2. The Community Development Director shall grant an exception to the applicable standard to the minimum extent necessary to comply with this section.

16.78.060 Deed Restrictions
A. Before obtaining a building permit for an SB 9 residential development on a parcel created by an urban lot split, the property owner shall file with the County Recorder a declaration of restrictions containing a reference to the deed under which the property was acquired by the current owner.

The deed restriction shall state that:

1. The parcel was created by an urban lot split and no further subdivision of the parcel is permitted.

2. The dwelling unit(s) on the parcel may not be rented for a term of less than 31 days.

B. The above declarations are binding upon any successor in ownership of the property. Lack of compliance shall be cause for code enforcement.

C. The deed restriction shall lapse upon removal of all dwelling units established on a parcel created under this chapter.

EXHIBIT 3
1 SB 9 STANDARDS: PUBLIC HEALTH AND SAFETY

AND ENVIRONMENTAL RESOURCE PROTECTION
The following standards apply to SB 9 residential development and urban lot split as defined in Municipal Code Sections 17.55.020 and 16.78.020. The term “SB 9 project” as used below refers to a proposed project with an SB 9 residential development, an urban lot split, or both. Other standards and City requirements may also apply to an SB 9 project based on site-specific conditions and proposed project features.

A. Government Code Exclusions

1. Excluded Sites. An SB 9 project shall not be located on a site with any of the following environmental resources and hazards as specified in subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision (a) Government Code Section 65913.4 unless required mitigation, if allowed, is incorporated into the proposed project:
a. Prime farmland or farmland of statewide importance
b. Wetlands
c. Very high fire hazard severity zone
d. Hazardous waste site
e. Earthquake fault zone
f. 100-year flood zone
g. Regulatory floodway
h. Adopted natural community conservation plan
i. Habitat for protected species
j. Conservation easement
B. Fire District Requirements
An SB 9 project must comply with 1) the California Fire Code with modifications and amendments as adopted by the Scotts Valley Fire Protection District (“Fire District”); and 2) the Santa Cruz County Fire Prevention Officers Association Fire Prevention Standards as adopted by the Fire District. Before the City approves a building permit or parcel map for an SB 9 project, the applicant must submit documentation from the Fire District that the project complies with all applicable requirements. Fire District requirements that may affect the feasibility of an SB 9 project include the following:

1. Fire Hydrants: The number, spacing, and distance from the property. Pursuant to Municipal Code Section 17.55.040.C (Utility Connections), an SB 9 project must be connected to and served by a municipal water service provider (i.e., the Scotts Valley Water District or San Lorenzo Valley Water District). Private wells and tanks used to provide a water supply for fire protection are not allowed.

EXHIBIT 3
2 2. Fire Flow: The flow rate and duration of a water supply that serves the project.

3. Fire Sprinklers: An automatic fire sprinkler system for each dwelling unit.

4. Access Road Dimensions: Minimum width, vertical clearance, and turning radius of roads providing fire apparatus access to the property.

5. Dead-End Access Roads: Maximum length of new dead-end roads/driveways serving the property.

C. City Fire Safety Standards
An SB 9 project must comply with the following City fire safety standards. These standards apply to an SB 9 project in addition to Fire District requirements. If Fire District requirements differ from City standards, the City will approve an SB 9 project only if it conforms with City requirements.

1. Emergency Vehicle Access – Roadway Width. An SB 9 project shall be served by roadways providing emergency vehicle access with a minimum 20-foot width. If an emergency vehicle must utilize a road less than 20 feet wide at any point to access the property, an SB 9 project is not allowed unless the applicant widens the roadway to comply with this standard.

2. Dead-end Street Length – Urban Lot Splits. An urban lot split is prohibited on a dead-end street where the distance from the start of the street to the lot exceeds the length specified in Municipal Code Section 16.44.020.A. For example, an urban lot split is not allowed on a lot on a dead-end street in the Low Residential General Plan Land Use Category if the lot is more than 700 feet from the start of that dead-end street. If the lot on the dead-end street is less than 700 feet from the start of the street, a proposed lot split would be allowed if it complies with all other applicable standards.

3. Emergency Vehicle Access – Free of Obstructions. Required emergency vehicle access shall be maintained free of structures (e.g., locked gates) obstructing emergency vehicle access to development.

D. Geologic Hazard Standards

1. Hillside Residential Combining District. The following requirements apply to an SB 9 project within the HR Hillside Residential Combining District (Municipal Code Chapter 17.40). a. The applicant shall submit a site development plan and preliminary geologic and soils investigation report as required by Section 17.40.040.
b. On a building site created through an urban lot split, the following apply:
(1) The average slope of the lot shall not exceed 40 percent and the average slope of the proposed building envelope shall not exceed 25 percent. (2) A private access roadway to or on the site shall not exceed 150 feet in length or a grade of 15 percent along the length of the pavement.
c. On an existing lot of record, the following apply:

EXHIBIT 3
3 (1) A structure or driveway shall not be located on a building pad with an average slope of 40 percent or more.
(2) A driveway to or on a building site shall not exceed a grade of 15 percent along the length of the pavement.
d. On all sites, the following apply:
(1) Portions of a site exceeding 30 percent slope shall not be graded. (2) Visible cut or fill slopes shall not exceed three horizontal to one vertical (3:1) (3) For units greater than 16 feet in height and/or with a floor area greater than 800 square feet, 1 foot shall be added to each side yard for each 1 foot of height above which the top plate line exceeds 15 feet in height.
(4) The clearance between ground floor levels and finish grade shall not exceed 4 feet.

Five feet is permitted if a landscape and irrigation plan which will screen the subfloor area is submitted with the application for a building permit and landscaping is installed prior to final inspection of the structure.

2. Landslide Hazard Areas. The following requirements apply to an SB 9 project in an area with known landslide deposits as shown in General Plan Figure SN-5 Landslide Deposits or on a site with known or suspected landslides as mapped by the United State Geological Survey. a. The applicant shall retain the services of a qualified geotechnical engineer or engineering geologist to prepare a design-level geotechnical investigation. The investigation shall identify project-specific foundation and structural design features needed to mitigate risks associated with landslide hazards.
b. The project shall be designed and constructed in accordance with the site preparation, foundation design, structural design, drainage, ground improvement performance testing, pavement design, and other recommendations in the design-level geotechnical investigation unless modified during construction, based on field conditions, by a qualified registered geotechnical or civil engineer.
c. Final grading plans shall be reviewed by a qualified registered geotechnical or civil engineer, and any resulting additional recommendations shall be incorporated into the project. d. All site preparation work shall be performed under the observation of the Geotechnical Engineering firm of record. All design and construction shall conform to the requirements of the latest California Building Code.
e. All structural design and construction shall be subject to final approval by the City of Scotts Valley Building Official.

EXHIBIT 3
4 E. Circulation Safety Standards

1. Highway 17 Access Hazards. An SB 9 project is not permitted where vehicle access to the site is provided solely from Highway 17 at the following locations as identified in the Highway 17 Access Management Plan (California Department of Transportation, 2016):
a. Driveway at PM 6.712 (Map ID #24)
b. Crescent Drive (Map ID #25)
c. Driveway at PM 6.485 (Map ID #26)

AGENDA ITEM NO. 1
DATE: 3-14-2024
City of Scotts Valley

PLANNING COMMISSION

STAFF REPORT
Date: March 14, 2024
Request: Hold study session to provide input on issues for local ordinance to implement SB 9
From: Ben Noble, Consultant
Approved: Taylor Bateman, Community Development Director, (831) 440-5630, [email protected]

STAFF RECOMMENDATION
The City is preparing a local ordinance to implement SB 9. Staff requests Planning Commission feedback on an approach to address important issues in this ordinance.

BACKGROUND
Senate Bill (SB) 9 was adopted in 2021 and went into effect on January 1, 2022. This law requires local jurisdictions to allow the following in a single-family zoning district:
• Two-Unit Housing Development: Two primary dwelling units on one lot. “Primary dwelling units” are the main residential units on a property and are regulated differently than accessory dwelling units (ADUs). • Urban Lot Split: A one-time subdivision of an existing lot into two lots. Two units are allowed on each of the newly created lots.

In Scotts Valley, an SB 9 project is allowed in the R-1, R-R, and R-MT zoning districts.

SB 9 projects are not allowed on sites with specified environmental resources and hazards, including wetlands, flood hazards, and habitat for protected species. Under SB 9 local jurisdictions must approve qualifying lot splits and dwelling units ministerially without a public hearing or discretionary review.

Prior to SB 9, only one primary dwelling unit per lot was allowed in the R-1, R-R, and RMT zoning districts. Now, up to four dwelling units are allowed on a lot in these zoning districts.

AGENDA ITEM NO. 1
DATE: 3-14-2024
Local jurisdictions may apply objective zoning, subdivision, and design standards to SB 9 projects. Local SB 9 standards must comply with the following:
• Minimum Floor Area: No less than 800 square feet per unit. • Minimum Lot Size: No less than 1,200 square feet for lots created through an urban lot split.
• Minimum Setbacks: No greater than 4 feet from side and rear property lines for 800 square-foot units.
• Minimum On-Site Parking: No more than one parking space per unit, with no parking required in areas served by “high-quality transit” as defined in state law.

Currently there are no areas served by high-quality transit in Scotts Valley, though that may change in the future if bus service frequency increases.

Attachment 1 provides an overview of development allowed under SB 9, prepared by the Association of Bay Area Governments (ABAG). Attached 2 provides a more detailed SB 9 legal summary.

As described below, SB 9 allows for a variety of development scenarios depending on whether the project includes a lot split and/or ADUs.

Scenarios Without a Lot Split
Figure 1 on the following page shows example SB 9 development scenarios without a lot split. SB 9 allows for up to two primary dwelling units on the lot, one ADU, and on junior accessory dwelling unit (JADU). A JADU is unit that is no more than 500 square feet in size and contained entirely within a primary dwelling unit.

Scenarios With a Lot Split
Figure 2 (page 4) shows example SB 9 development scenarios with a lot split. The lot split may create two side-by-side lots, or a rear lot behind a front lot. SB 9 allows no more than two primary dwelling units or ADUs on each newly created parcels.

ADU Ordinance
The City currently is in the process of updating its ADU ordinance. The updated ADU ordinance will establish standards for ADU floor area, height, setbacks, and other issues within the parameters of state law. These ADU standards will apply to an ADU included in an SB 9 project.

AGENDA ITEM NO. 1
DATE: 3-14-2024
Figure 1

AGENDA ITEM NO. 1
DATE: 3-14-2024
Figure 2

AGENDA ITEM NO. 1
DATE: 3-14-2024
Design Standards
The City’s recently adopted Objective Standards for Multi-Unit Development apply to SB 9 projects with two or more primary dwelling units. For projects with one primary SB 9 unit added to a lot with an existing home, the City’s SB 9 ordinance will require design features consistent with the existing home. Design consistency is also required for new ADUs. Other objective standards in the City’s Zoning Code and Subdivision Ordinance will continue to apply unless the standard conflicts with a standard or other requirement in SB 9.

DISCUSSION
City staff is in the process of drafting an ordinance to implement SB 9. This local SB 9 ordinance will help ensure that SB 9 projects preserve and enhance existing neighborhood character to the extent possible under state law. Staff requests Planning Commission input on the following issues that will be addressed in the City’s SB 9 ordinance:
• Building Height
• Unit Size
• Garage Parking
• Vehicle Access/Shared Driveways
• Street Frontage/Flag Lots
• Privacy
The discussion below provides background information and recommends an approach for each issue. Staff and consultants request Planning Commission feedback on the recommended approach for each issue. Staff will use this input to help prepare a draft SB 9 ordinance for Planning Commission review at a future meeting.

Issue 1: Primary Building Height
SB 9 is silent on building height – the law does not mandate a minimum allowed building height or specify a maximum building height for SB 9 projects. The City can establish any building height standard for primary dwelling units provided the standard allows for two 800 square-foot units per lot.

The Zoning Code currently allows for a maximum building height of 35 feet for a detached single-family home. State law requires the City to allow an ADU with a height of at least 16 feet. City staff expects that the updated ADU ordinance will allow an ADU height greater than 16 feet in certain circumstances.

Recommendation: Limit height to 16 feet for SB 9 units 4 feet from the side property line. Allow additional height for units further set back from the property line. For SB 9 units that comply with minimum yard requirements of the zoning district, allow a

AGENDA ITEM NO. 1
DATE: 3-14-2024
maximum building height of 25 feet (two stories). For reference, Table 1 shows minimum yards in zoning districts where SB 9 projects are allowed.

Table 1: Minimum Yard Requirements
Yard R-1-10 R-1-20 R-1-40 R-R-2.5 R-MT
Front 20 ft. 30 ft. 30 ft. 40 ft. 40 ft.

Side 10 ft.* 10 ft.* 10 ft.* 15 ft. 20 ft.

Rear 15 ft. 15 ft. 20 ft. 20 ft. 25 ft.
* Or ten percent of lot width, whichever is less.

Figure 3 illustrates the recommended SB 9 building height approach. In the R-1-10 zone, the maximum height of an SB 9 unit 4 feet from the rear property line is 16 feet.

The maximum height of an SB 9 unit 9.5 feet from the rear lot line is 20.5 feet. A building 15 feet from the rear lot line would be allowed a maximum height of 25 feet (two stories).

This approach would encourage SB 9 projects to comply with property line setbacks that apply to other single-family homes, minimize impacts on adjacent properties, and reinforce existing neighborhood development patterns.

Figure 3: Building Height Approach, R-1-10 Zone

AGENDA ITEM NO. 1
DATE: 3-14-2024
Issue 2: Unit Size
SB 9 requires a local jurisdiction to allow up to two primary dwelling units on a lot with a minimum 800 square feet of floor area or more for each unit. A jurisdiction may allow larger SB 9 units if it wishes.

The Zoning Code currently does not specify a maximum square footage for single family homes. The size of new homes are limited by maximum building height, minimum yards, and maximum site coverage standards. When the City adopts an updated ADU ordinance, State law will require a maximum floor area of at least 850 square feet for ADUs with one bedroom or less and 1,000 square feet for an ADU with more than one bedroom. The City may allow larger ADUs if it wishes.

Recommendation: Connect maximum SB 9 unit size to property line setbacks, similar to the recommended building height approach. If an SB 9 unit complies with the minimum yard requirements of the zoning district, allow a maximum floor area of 1,250 square feet for the unit. If an SB 9 unit does not comply with the minimum yard requirements, limit floor area to 800 square feet. If an ADU is included on the lot, the maximum size of the ADU will be as required under state law or specified in the City’s ADU ordinance.

Figure 3 on the previous page illustrates the recommended unit size approach. SB 9 units within the zoning district rear yard are 800 square feet. The unit that complies with the zoning district yard requirements is 1,250 square feet.

Issue 3: Garage Parking
The Zoning Code currently requires a two-car garage for single-family dwellings. A garage or covered parking is not required for multi-family dwellings or ADUs.

SB 9 limits required on-site parking to one parking space per unit. The City may require garage parking for an SB 9 unit provided the requirement does not physically preclude two units of at least 800 square feet. If required, a garage space would not be included in the floor area calculation for the purpose of determining compliance with the maximum unit size standard.

Recommendation: Allow uncovered surface parking for SB 9 projects where there are two or fewer new units (including ADUs). Require garage parking for the third or fourth new unit if proposed. Allowing surface parking for the first two units will minimize garage building mass and reduce development costs. Requiring garage parking for the third and fourth units will reduce visual clutter caused from on-site vehicle parking.

Issue 4: Vehicle Access/Shared Driveways
SB 9 allows objective standards for vehicle access to lots (e.g., number of curb cuts, dimensions of curb cuts, width of driveway). However, these standards may not physically preclude two units of at least 800 square feet.

AGENDA ITEM NO. 1
DATE: 3-14-2024
Recommendation: On vacant lots, allow only one driveway curb cut with a maximum width of 20 feet. Two lots created through an urban lot split must share one driveway with access easements recorded as necessary. Allow exceptions when needed for emergency vehicle access or other unusual circumstances. Figure 4 shows two example configurations with a single driveway serving two lots and multiple units.

Figure 4: Example Single Driveway Configurations
For an SB 9 project on a lot with an existing home, allow two driveway curb cuts only if necessary due to the existing site layout and other physical constraints. Limit the width of the second curb cut to 12 feet.

Issue 5: Street Frontage/Flag Lots
SB 9 allows for objective subdivision standards, which may address minimum street frontage for parcels created by an urban lot split. These subdivision standards could include rules for “flag lots.” A “flag lot” is a parcel where street access is provided by a narrow strip that connects to a larger area located behind a separate street-facing parcel. See Figure 5.

AGENDA ITEM NO. 1
DATE: 3-14-2024
Figure 5: Flag Lot
The Zoning Code allows flag lots with City Council approval if the lot has at least 12 feet of street frontage, is no more than 150 feet in length, does not result in more than four adjacent driveways along 200 feet of street frontage, and meets other criteria in Section

17.46.060.F. The narrow area providing street access may be part of the flag lot itself or an access easement across a separate parcel.

Recommendation: On vacant lots with an urban lot split, allow both flag lots and sideby-side lots (see Figure 6). Identify a preference for side-by-side lots unless a flag lot 1) allows for development more consistent with the existing neighborhood character; or 2) is physically necessary to accommodate the proposed units. When allowed, require SB 9 flag lots to comply with existing objective flag lot standards in SVMC Section

17.46.060.F. Require a minimum street frontage of 30 feet for side-by-side lots.

Figure 6: Allowed Lot Configurations
Flag Lot Side-by-Side
Lots

AGENDA ITEM NO. 1
DATE: 3-14-2024
Issue 6: Privacy
SB 9 requires the City to allow units 4 feet from side and rear property line. Units constructed close to property lines may impact the privacy of adjacent properties. The City must approve units ministerially without a public hearing and cannot use a discretionary design review process to address potential privacy concerns.

Recommendation: If a building wall does not comply with the minimum side and rear yard requirements of the zoning district, require windows on the wall to be 5-foot minimum sill height above the finished floor, clerestory, or opaque/frosted glass. Prohibit second-story exterior decks and balconies and rooftop decks that face an interior side or rear yard that abuts an adjacent residential use.

NEXT STEPS
Based on direction received from the Planning Commission, staff and consultants will prepare a draft SB 9 ordinance for Planning Commission review. The Planning Commission will hold a future public hearing to make a recommendation to the City Council on the ordinance. Following Planning Commission recommendation, the City Council will hold a public hearing to consider adoption of the ordinance.

ATTACHMENTS

1. SB 9 Overview

2. SB 9 Legal Summary

SENATE BILL 9 (SB 9): AN OVERVIEW

WHAT IT IS AND HOW IT IMPACTS RESIDENTIAL LAND USE
Senate Bill 9 (SB 9) is a new California State Law taking effect January 1, 2022.

SB 9 changes existing limits on how many homes can be built on a lot zoned as singlefamily. Similar to previous state legislation on Accessory Dwelling Units (ADUs), SB 9 is intended to support the availability of more modestly priced homes by encouraging building of smaller houses on small lots.

WHAT DOES SB 9 DO?
SB 9 MAKES IT EASIER TO: BUILD UP TO 4 HOMES

ON A PARCEL IN A SINGLE-FAMILY ZONE &

SUBDIVIDE A LOT INTO TWO
THAT CAN BE SMALLER THAN REQ MIN. SIZE
Used together, this allows 4 HOMES where 1 was primary home was allowed before.

SB 9 makes this easier by waiving public hearings for the two actions.

WHAT CAN I DO ON MY LOT?
Add new homes to existing parcel • Divide existing house into multiple units • Divide parcel and add homes Illustrations are based on a preliminary analysis of the law. Details are subject to change and are for informational purposes only.

See the following page for qualification details and limitations.

VACANT LOT

LOT WITH

SINGLE-FAMILY HOME

LOT WITH
NONCONFORMING DUPLEX1

LOT WITH SINGLE-FAMILY

HOME AND AN ADU
BEFORE
No units 1 PRIMARY UNIT 2 PRIMARY UNITS
1 PRIMARY UNIT
+ 1 ADU/JADU2

ADD UNITS,

NO LOT SPLIT
Up to 2 PRIMARY UNITS
+ Up to 2 ADUs/JADUs3
Up to 2 PRIMARY UNITS4
+ Up to 2 ADUs/JADUs3
(No additional units)5 Up to 2 PRIMARY UNITS4
+ 1 ADU/JADU3

ADD UNITS

AND LOT SPLIT
Up to 4 TOTAL UNITS Up to 4 TOTAL UNITS Up to 4 TOTAL UNITS Up to 4 TOTAL UNITS If you’re NOT splitting a lot:
• SB 9 does not limit the number of ADUs/JADUs (B2, D2) – but other laws might.

If you ARE splitting a lot:
• Jurisdictions can limit the 2 lots to 4 units total, including any ADUs/JADUs, and may choose not to permit ADUs/JADUs.

SINGLE-UNIT DEVELOPMENTS
SB 9 can be used to develop single units –
but projects must comply with all SB 9
requirements.
1 Legally constructed but not currently permitted. Check your local ordinance for nonconforming use policies.
2 Junior Accessory Dwelling Units (JADUs) are small (max. 500ft2) rentable units within a single-family structure. See your jurisdiction’s specifications for more details.
3 The exact number and type of ADUs/JADUs allowed should be confirmed based on project specifics.
4 Added primary unit can be new construction or a split of the existing house. 5 Check local nonconforming use rules for more information about ADUs/JADUs.

THIS DOCUMENT DOES NOT CONSTITUTE LEGAL ADVICE OR OPINIONS REGARDING SPECIFIC FACTS. FOR MORE INFORMATION ABOUT SB 9, PLEASE CONTACT YOUR OWN LEGAL COUNSEL.

DOES MY LOT QUALIFY?
REFERENCE ANY QUALIFICATION MATERIALS FROM YOUR JURISDICTION FOR MORE SPECIFICS. 2-UNIT DEVELOPMENTS & LOT SPLITS
• Located in a SINGLE-FAMILY RESIDENTIAL ZONE
• Located in an URBANIZED AREA or URBAN CLUSTER, as defined by the U.S. Census Bureau (essentially, an area with at least 2,500 people) 6 • Not in a state/local HISTORIC DISTRICT / not an HISTORIC LANDMARK Lots in these areas may not be eligible or may need to meet additional qualifications:
7 • PRIME FARMLAND or farmland of statewide importance
• WETLANDS
• Identified for CONSERVATION or UNDER CONSERVATION EASEMENT • HABITAT for protected species
• Within a VERY HIGH FIRE HAZARD SAFETY ZONE
• A HAZARDOUS WASTE SITE
• Within a delineated EARTHQUAKE FAULT ZONE
• Within a 100-YEAR FLOODPLAIN OR FLOODWAY
The project cannot alter or demolish:
• Deed-restricted AFFORDABLE HOUSING
• RENT-CONTROLLED HOUSING
• Housing on parcels with an ELLIS ACT EVICTION in the last 15 yrs. • Housing OCCUPIED BY A TENANT currently or in the last 3 yrs.

ADDTL. QUALIFICATIONS 2-UNIT DEVELOPMENTS
• Project DOES NOT REMOVE MORE THAN 25% OF
EXTERIOR WALLS on a site that has a tenant
or has had a tenant in the last 3 yrs. (even if
the rental unit itself isn’t altered)
ADDTL. QUALIFICATIONS LOT SPLITS
• LOT IS SPLIT ROUGHLY IN HALF – smaller lot is
at least 40% of the original lot8
• Each new lot is AT LEAST 1,200FT2 9(This
means the original lot must be at least 2,400ft2
for a 50/50 split; 3,000ft2 if a 60/40 split.)
• Lot is NOT ADJACENT TO ANOTHER LOT
SUBDIVIDED by you (or done in concert with
you) using SB 9
• Lot was NOT CREATED BY A PREVIOUS SB 9 SPLIT
ADDITIONAL LIMITATIONS ON SB 9 PROJECTS
CONTACT YOUR LOCAL JURISDICTION FOR ADDITIONAL DETAILS ON SB 9 PROJECT LIMITATIONS. 2-UNIT DEVELOPMENTS & LOT SPLITS
• PARKING: Your jurisdiction cannot require more than
one off-street parking space per unit, and cannot
require any parking spaces if the parcel is close to
transit (as defined in the law)
• NO SHORT-TERM RENTAL: Units created by SB 9 cannot
be used for short-term rentals (less than 30 days)
• HOAS: SB 9 does not change rules or restrictions put in place by homeowners’ associations.
• LOCAL STANDARDS: Jurisdictions may set zoning,
subdivision, and design standards for SB 9 projects,
but they must be objective and they cannot preclude
two units of at least 800ft2 on each lot.
• PUBLIC HEALTH AND SAFETY: Your project can be denied
if it creates a “specific, adverse impact on public
health and safety.”10
ADDTL. LIMITATIONS 2-UNIT DEVELOPMENTS
• You may be required to do a PERCOLATION TEST if you
have on-site wastewater treatment
ADDTL. LIMITATIONS LOT SPLITS
• The project is limited to RESIDENTIAL USES ONLY
• OWNER-OCCUPANCY: Applicant must sign an affidavit
saying they intend to live in one of the units for 3+
years after approval
• Your jurisdiction cannot require CORRECTION OF

NONCONFORMING ZONING CONDITIONS
• Your jurisdiction may require EASEMENTS FOR PUBLIC
SERVICES AND FACILITIES and/or to have access to the
public right-of-way
WHAT DOES THE PROCESS LOOK LIKE?
STEP 1 Applicant submits SB 9
application to local
jurisdiction.

STEP 2 Local jurisdiction
determines whether
application is complete
within 30 days of submittal.

STEP 3 Once application is
complete, local staff reviews the
application and determines
whether to approve and
conditions of approval.
6 Urbanized areas/urban cluster maps are on the U.S. Census Bureau website. 7 As defined in Government Code § 65913.4(a)(6)(B)-(K). 8 Each new lot can be smaller than required min. lot size per local zoning. 9 This number may be lowered by local ordinance.
10 Must be determined in writing by a building official, based on inconsistency with objective standards and without feasible mitigation measures.

1 Senate Bill 9 Summary
Senate Bill 9 adds Government Code Sections 65851.21 and 66411.7 and amends Government Code Section 66452.6 (Subdivision Map Act). The provisions of SB 9 are effective beginning January 1, 2022.

Below is a summary of those provisions.

I. Government Code Section 65851.21 – Ministerial Two-Unit Developments Under SB 9, local agencies must approve in a ministerial process, without any discretionary review or hearing, certain two-unit developments. Two-unit developments are those that propose either the construction of no more than two new units, or the addition of one new unit to an existing unit.

To qualify for this ministerial process, the two-unit development must be proposed in a single-family residential zone. Other requirements that a project must satisfy to qualify for SB 9's benefits include:
• Location. The project must be in an urbanized area or urban cluster, or within a city with boundaries in an urbanized area or urban cluster, as those terms are defined by the U.S. Census Bureau. The project cannot be on a site designated as a local or state historic landmark or within a local or state historic district. The project may not be on prime agricultural land, wetlands, or protected species habitat, but may be in a high or very high fire severity hazard zone, earthquake fault zone, floodplain, floodway, and site with hazardous materials so long as certain mitigation measures (as outlined in Government Code Section 65913.4(a)(6)) have been implemented on those sites.
• Protected Units. The two-unit development may not result in the demolition or alteration of affordable housing, rent-controlled housing, housing that was withdrawn from the rental market in the last 15 years, or housing occupied by a tenant in the past 3 years. • Limit on Demolition. The project may not demolish more than 25 percent of the exterior walls of an existing unit unless either the local agency permits otherwise or the site has not been occupied by a tenant in the last 3 years.
• Residential Uses. Any units constructed via SB 9 must be used for residential purposes and cannot be used for short-term rentals of less than 30 days.

A project that meets these criteria and otherwise qualifies for the SB 9's ministerial process is exempt from the provisions of the California Environmental Quality Act, as is an ordinance implementing these provisions. However, the provisions of the California Coastal Act of 1976 are applicable to SB 9 two-unit developments, except that a local agency is not required to hold a public hearing for coastal development permit applications.

SB 9 provides narrow parameters for local agencies regarding the standards which they may apply to qualifying two-unit developments and the circumstances under which they may reject an otherwise qualifying two-unit development. As a general matter, a local agency may impose objective zoning standards, objective subdivision standards, and objective design review standards, so long as those standards do not conflict with the limitations imposed by SB 9 and would not physically preclude the construction of up to two units of at least 800 square feet each. Other limitations in SB 9 include:
• Setbacks. A local agency may not require rear and side yard setbacks of more than four feet. No setback may be required for a unit constructed (1) within an existing living area, or (2) in the same location and to the same dimensions as an existing structure. • Parking Requirements. A local agency may only require one off-street parking space per unit.

No parking requirements may be imposed if the parcel is located within (1) one-half mile walking

2 distance of either a statutorily defined high-quality transit corridor or major transit stop, or (2) one block of a car share vehicle.
• Adjacent or Connected Structures. A local agency may not deny an application for a two-unit development solely because it proposes adjacent or connected structures, as long as the structures meet building code safety standards and are sufficient to allow separate conveyance. • Percolation Test. For residential units connected to an onsite wastewater treatment system, the local agency may require a percolation test completed within the last 5 years, or if the percolation test has been recertified, within the last ten years.

SB 9 provides that a local agency may deny an otherwise qualifying two-unit development if the local building official makes a written finding, based on a preponderance of the evidence, that the proposed housing development project would have a specific, adverse impact upon public health and safety or the physical environment, and there is no feasible method by which to satisfactorily mitigate the adverse impact.

II. Government Code Section 66411.7 – Ministerial Urban Lot Splits Under SB 9, local agencies must also ministerially approve, without discretionary review or hearing, certain urban lot splits. To qualify for ministerial approval under SB 9, the parcel to be split must be in a single-family residential zone, and the parcel map for the urban lot split must meet the following requirements:
• Location. The project must be in an urbanized area or urban cluster, or within a city with boundaries in an urbanized area or urban cluster, as those terms are defined by the U.S. Census Bureau. The project cannot be on the site of a designated local or state historic landmark or within a local or state historic district. The project may not be on prime agricultural land, wetlands, or protected species habitat, but may be in a high or very high fire severity hazard zone, earthquake fault zone, floodplain, floodway, and site with hazardous materials so long as certain mitigation measures (as outlined in Government Code Section 65913.4(a)(6)) have been implemented on those sites.
• Parcel Size. The parcel map must subdivide an existing parcel to create no more than two new parcels of approximately equal lot area, with neither resulting parcel exceeding 60 percent of the lot area of the original parcel. Additionally, both newly created parcels must be at least 1,200 square feet (unless the local agency adopts a smaller lot size). • No Prior SB 9 Lot Split. The parcel to be split may not have been established through a prior SB 9 lot split. Neither the owner nor anyone acting in concert with the owner may have previously subdivided an adjacent parcel using an SB 9 lot split.
• Subdivision Map Requirements. The urban lot split must conform to all applicable objective requirements of the Subdivision Map Act, except those that conflict with SB 9 requirements. • Protected Units. The urban lot split may not result in the demolition or alteration of affordable housing, rent-controlled housing, housing that was withdrawn from the rental market in the last 15 years, or housing occupied by a tenant in the past 3 years. • Owner-Occupancy Affidavit. The applicant must indicate, by affidavit, the applicant’s intention to reside in one of the units built on either parcel for at least three years. This requirement does not apply if the applicant is a qualified non-profit or community land trust. A local agency may not impose any additional owner occupancy requirements on units built on a SB 9 lot. • Residential Uses. Any units constructed on a parcel created through via SB 9 must be used for residential purposes and cannot be used for short-term rentals of less than 30 days.

3 A parcel map application for an urban lot split that meets these criteria and otherwise qualifies for the SB 9's ministerial process is exempt from the provisions of the California Environmental Quality Act, as is an ordinance implementing these provisions. The provisions of the California Coastal Act of 1976 are applicable to SB 9 urban lot splits, except that a local agency is not required to hold a public hearing for coastal development permit applications.

As with two-unit developments under SB 9, a local agency may impose objective zoning standards, objective subdivision standards, and objective design review standards to an SB 9 urban lot split, so long as those standards do not conflict with the limitations imposed by SB 9 and would not physically preclude the construction of up to two units of at least 800 square feet each. Other limitations in SB 9 include:
• Setbacks. A local agency may not require rear and side yard setbacks of more than four feet. No setback may be required for a unit constructed (1) within an existing living area, or (2) in the same location and to the same dimensions as an existing structure. • Parking Requirements. A local agency may only require one off-street parking space per unit.

No parking requirements may be imposed if the parcel is located within (1) one-half mile walking distance of either a statutorily defined high-quality transit corridor or major transit stop, or (2) one block of a car share vehicle.
• Easements, Access, and Dedications. A local agency may require an application for a parcel map for an urban lot split to include easements necessary for the provision of public services and facilities. The local agency may also require that the resulting parcels have access to, provide access to, or adjoin the public right-of-way. The local agency may not require dedications of rights-of-way or construction of offsite improvements.
• Number of Units; ADUs and JADUs. Notwithstanding the provisions of Government Code Sections 65852.1, 65852.21, 65852.22, and 65915, a local agency is not required to permit more than two units on any parcel created through the authority in SB 9, inclusive of any accessory dwelling units or junior accessory dwelling units.
• Adjacent or Connected Structures. A local agency may not deny an application for an urban lot split solely because it proposes adjacent or connected structures, as long as the structures meet building code safety standards and are sufficient to allow separate conveyance.

The standard for denying an application for a parcel map for an urban lot split is the same as for denying an SB 9 two-unit development – the local building official must make a written finding, based on a preponderance of the evidence, that the proposed housing development project would have a specific, adverse impact upon public health and safety, or the physical environment, and there is no feasible method by which to satisfactorily mitigate the adverse impact.

III. Government Code Section 66452.6 – Subdivision Map Act Amendment Currently, an approved or conditionally approved tentative map expires either 24 months after its approval, or after any additional period permitted by local ordinance, not to exceed an additional 12 months. SB 9 extends the limit on the additional period that may be provided by local ordinance from 12 to 24 months.

Where local agencies adopt this change by ordinance, an approved or conditionally approved tentative map would expire up to 48 months after its approval if it received a 24-month extension of approval.

AGENDA ITEM 1.

DATE: 5/1/2024
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: 5/1/2024
TO: Honorable Mayor and City Council
FROM: Jayson Rutherford, Captain
APPROVED: Mali LaGoe, City Manager
SUBJECT: AB 481 Military Equipment Use Annual Report and Ordinance Renewing the Military Use Policy

SUMMARY OF ISSUE
California Assembly Bill 481 ("AB 481"), codified in Government Code sections 7070 through 7075, required a law enforcement agency (LEA) to obtain approval from the applicable governing body, via adoption of a “military equipment” use policy by ordinance, prior to the LEA funding, acquiring, or using military equipment no later than May 1, 2022. The City complied with AB 481 by having the Scotts Valley Police Department (“SVPD”) create a policy regarding the use of military equipment and adopting it by Ordinance No. 22-200 on May 18, 2022. In accordance with AB 481, the ordinance was renewed in May 2023, Ordinance No. 22-200.1, to reaffirm the policy.

AB 481 also requires law enforcement agencies to present an annual report to their governing body consisting of a summary of how each type of equipment was used and the purpose of that use; quantity possessed of each type of equipment; annual costs for each type of equipment; summary of complaints or concerns received for each type of equipment; information disclosing violations of military equipment policies and actions taken in response, as well as results of internal audits; and plans to acquire additional military equipment in the coming year, and the quantity sought.

The SVPD prepared an annual report and on April 15, 2024, held a public meeting to discuss and answer any questions from the public regarding the annual report. The meeting was held in the Council Chambers and one community member attended. The annual report proposes replacing two older AR-15 patrol rifles with two new AR-15 patrol rifles to be used by patrol staff.

In addition to the annual report, AB 481 also requires the City Council to, within a year of the initial approval, and at least annually thereafter, review the ordinance establishing the military use policy. As was done in 2023, in order to comply with this requirement, staff is recommending that the City Council introduce and waive further reading of Ordinance No. 22- 200.2 approving Lexipol Policy 706 pertaining to the funding, acquisition, and use of military equipment as mandated by Assembly Bill 481.

FISCAL IMPACT
Authorization of the replacement of two new outfitted patrol rifles will cost approximately $3800.00 from the General Fund.

Annual rifle and less-lethal shotgun training cost approximately $1200.

STAFF RECOMMENDATION
Staff recommends the City Council take the following actions:

1. Review and renew Ordinance No. 22-200.2 by introducing and waiving further reading of Ordinance No. 22.200.2 approving Lexipol Policy 706 pertaining to the funding, acquisition, and use of military equipment as mandated by Assembly Bill 481; and

2. Approve the acquisition of the new items of military equipment listed in the Annual Report.

TABLE OF CONTENTS

1. AB 481 Annual Report 2023

2. AB 481 Ordiance 22-200.2 2024

3. Military Equipment Lexipol - Policy 706

1 | Page

SCOTTS VALLEY POLICE DEPARTMENT
2023 AB 481 ANNUAL REPORT
Chief Stephen Walpole
April 9th, 2024

2 | Page
2023 AB 481 ANNUAL REPORT
AB 481 Military Equipment Use Compliance Requirements:
• Approval of the Military Equipment Use Policy (Completed 5/2022 Policy #706) • Approval of the Military Equipment Use Ordinance (Completed 5/2022 Ord. # 22-200) • Publishing the Policy (Completed 5/2022)
• Annual Report
Annual Report:

In 2022, Assembly Bill 481 required all California Law Enforcement to declare any equipment categorized as Military Equipment. Furthermore, agencies were required to get permission from their governing bodies to possess and utilize that equipment. The Scotts Valley Police abided by the law and obtained permission to utilize two items on the list. In addition, AB 481 requires all agencies to provide an annual report to their governing body and open to public viewing.

Items deemed to be “military equipment” by AB 481 are used as a component of overall best practices for Law Enforcement throughout the country. These tools have been tested in the field, and are used by officers to enhance citizen safety and officer safety.

Loss of these items would jeopardize the welfare of citizens and SVPD officers.

Officers are trained on all department issued equipment before utilizing the equipment in the field. Officers receiving the equipment undergo training on the nomenclature, functionality, and risks associated with the use of the equipment. Furthermore, officers are required to requalify annually.

Officers must comply with mandated training as regulated by Federal, State and Local statutes. Most of the training is managed and administered by the California Commission on Peace Officer Standards and Training (POST), which sets minimum training standard for California law enforcement officers.

AB 481 requires six elements to be included in the annual report for each type of equipment, which are outlined below.

3 | Page
2023 AB 481 ANNUAL REPORT
1) Summary of how each type of equipment was used and the purpose of that use:

The Scotts Valley Police Department received approval to use Category 10 - Specialized Firearms (AR-15 .223 patrol rifle) and Category 14 -Kinetic Energy Weapons (Remington 870 shotgun converted to “less-lethal” only).

There were no use-of-force incidents involving rifles or less-lethal shotguns.

Rifles and Less-Lethal Shotguns were used during the annual rifle range and qualification training dates in January 2023.

Rifles and Less-Lethal shotguns were used during the following:

Execution of a search warrant involving an armed prohibited person.

Execution of two search warrants involving illegal firearms.

Eviction of a person squatting on private property, who made violent threats to police.

No rifles or shotguns were fired during the deployment. 2) Quantity possessed of each type of equipment:

The department currently has 16 patrol rifles and 5 less-lethal shotguns in our inventory.

4 | Page
2023 AB 481 ANNUAL REPORT
3) Annual costs for each type of equipment, “including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs”:

City Council approved $3800 to purchase two new Colt AR-15 rifles to replace two outdated existing Bushmaster rifles. The new rifles were purchased in May 2023.

Officers completed an eight-hour rifle and less-lethal shotgun training and qualification in January 2023. The ammunition for this training was $1200. 4) Summary of complaints or concerns received for each type of equipment:

There were no complaints or concerns received.
5) Information disclosing violations of military equipment policies and actions taken in response, as well as result of internal audits:

There were no violations of Scotts Valley Police Lexipol policy 706, Military Equipment. 6) Plans to acquire additional military equipment in the coming year, and the quantity sought:

SVPD currently has 10 Bushmaster AR-15 rifles and 6 Colt AR-15 rifles. The Bushmaster rifles were purchased in 2010, and several are in need of replacement due to prolonged use and wear. In 2023, we received approval from City Council to replace two Bushmaster rifles with two new Colt rifles. The two Bushmaster rifles were taken out of service and destroyed, so the number of rifles in our inventory remained the same.

In 2024, we are proposing to replace the last two remaining outdated Bushmaster rifles with two new Colt rifles. The two Bushmaster rifles will be taken out of service and destroyed, so the number of rifles in our inventory will remain the same. The total cost of the two new Colt rifles completely outfitted with sling, Aimpoint optic, and tactical light will be $3,792.26.

004
ORDINANCE NO. 22-200.2

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SCOTTS VALLEY AMENDING TITLE 9 OF THE SCOTTS VALLEY MUNICIPAL CODE BY ADDING CHAPTER 9.22, USE OF MILITARY EQUIPMENT BY THE POLICE DEPARTMENT WHEREAS, on September 30, 2021, Governor Gavin Newsom signed into law Assembly Bill 481, relating to the use of military equipment by law enforcement agencies; and WHEREAS, Assembly Bill 481 (AB 481), codified at California Government Code sections 7070 through 7075, requires law enforcement agencies to obtain approval of the applicable governing body, by an ordinance adopting a “military equipment” use policy at a regular meeting held pursuant to open meeting laws prior to taking certain actions relating to the funding, acquisition, or use of “military equipment”. The term “military equipment” is defined in California Government Code Section 7070; and WHEREAS, AB 481 allows the City Council to approve the funding, acquisition, or use of military equipment, within its jurisdiction only if it makes specified determinations; and WHEREAS, the proposed military equipment use policy is found within Scotts Valley Police Department Lexipol Policy Manual, General Order 706. The policy was published on February 16, 2022 and displayed on the Scotts Valley Police Department website on March 10, 2022 is being presented to the City Council on April 6, 2022. A copy of the policy is attached hereto as Exhibit A; and WHEREAS, the Scotts Valley Police Department Policy 706 meets the requirements of California Government Code 7070; and
WHEREAS, this ordinance adds to the Municipal Code to affirm Scotts Valley Police Department Policy 706 and authorize the use of “military equipment” by the members of the Scotts Valley Police Department as described in Policy 706; and WHEREAS, in the enactment of this ordinance, the City followed the guidelines adopted by the State of California and published in the California Code of Regulations, Title 14, Section 15000, et seq. and found this activity is not a “project” as defined by California Environmental Quality Act (CEQA) because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF SCOTTS VALLEY DOES ORDAIN AS FOLLOWS:

SECTION 1. The foregoing facts are adopted as findings of the City Council as though set forth in fully within the body of this ordinance.

SECTION 2. That a new Chapter 9.22 is added to Title 9 of the Scotts Valley Municipal Code to read as follows:

005
“CHAPTER 9.22 - MILITARY EQUIPMENT USE POLICY.

Section 9.22.010- Findings and Purpose
Sec. 9.22.010 – Findings and Purpose.
(a) The City Council has made the following determinations:
(1) The military equipment inventoried and presented to the City Council is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety; and
(2) The Military Equipment Use Policy (“Policy”) will safeguard the public’s welfare, safety, civil rights, and civil liberties; and (3) The military equipment identified in the Military Equipment Use Policy is reasonably cost effective compared to available alternatives that can achieve the same objective of Officer and civilian safety; and
(4) Prior military equipment use complied with the applicable Equipment Use Policy (which included equipment now defined as military equipment) that was in effect at the time, or if prior uses did not comply with the accompanying Military Equipment Use Policy, corrective action has been taken to remedy nonconforming uses and ensure future compliance.
(b) The Police Department has submitted a proposed Policy to the City Council and has made those documents available on the Police Department’s website for at least 30 days prior to the public hearing concerning the military equipment at issue.
(c) The Policy was considered by the City Council as an agenda item in an open session of a regular meeting, noticed in accordance with the Ralph M. Brown Act, at which public comment was permitted.
(d) The Policy shall be made publicly available on the Police Department’s website for as long as the military equipment is available for use. (e) The Police Department shall submit an annual military equipment report to the City Council, containing the information required in Government Code Section 7072, and the City Council shall determine whether each type of military equipment identified in that report has complied with the standards for approval set forth in (a)(1)-(4) above.
(f) The City Council shall review this ordinance, and vote on whether to renew it, on an annual basis at a regular meeting, in accordance with Government Code Section 7071(e)(2)
(g) The City Council approves the use of the Policy and finds that it satisfies the requirements of Government Code Section 7070(d).”
SECTION 3. SEVERABILITY. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held invalid or unconstitutional by any court of

006
competent jurisdiction such portion shall be deemed a separate, distinct and independent provision of such Ordinance and shall not affect the validity of the remaining portions thereof.

SECTION 4. REPEALS CONFLICTING ORDINANCES. All other ordinances of the City of Scotts Valley or provisions of the Scotts Valley Municipal Code which are in conflict with this Ordinance are hereby repealed to the extent of such conflict.

SECTION 5. CEQA COMPLIANCE. The City Council finds and determines that the enactment of this Ordinance is not a “project” as that term is used in the California Environmental Quality Act (“CEQA;” Cal. Pub. Resources Code Section 21000 et seq.) or the State CEQA Guidelines (Cal. Code of Regs., Title 14, Section 15000 et seq.).

Therefore, no environmental assessment is required or necessary.

SECTION 6. EFFECTIVE DATE. The above and foregoing ordinance was introduced for a first reading on May 1, 2024, and passed and adopted on May 15, 2024 at a duly held meeting of the City Council of the City of Scotts Valley by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

Randy Johnson, Mayor
ATTEST:

Cathie Simonovich, City Clerk

APPROVED
AS TO FORM:

Kirsten Powell, City Attorney

Policy
706
Scotts Valley Police Department
Scotts Valley PD CA Policy Manual
Copyright Lexipol, LLC 2022/09/01, All Rights Reserved.

Published with permission by Scotts Valley Police Department Military Equipment - 1
Military Equipment
706.1 PURPOSE AND SCOPE
The purpose of this policy is to provide guidelines for the approval, acquisition, and reporting requirements of military equipment (Government Code § 7070; Government Code § 7071; Government Code § 7072).
706.1.1 DEFINITIONS
Definitions related to this policy include (Government Code § 7070):

Governing body – The elected or appointed body that oversees the Department.

Military equipment – Includes but is not limited to the following:
• Unmanned, remotely piloted, powered aerial or ground vehicles. • Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers. • High mobility multipurpose wheeled vehicles (HMMWV), two-and-one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached. • Tracked armored vehicles that provide ballistic protection to their occupants. • Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units. • Weaponized aircraft, vessels, or vehicles of any kind. • Battering rams, slugs, and breaching apparatuses that are explosive in nature. This does not include a handheld, one-person ram.
• Firearms and ammunition of_.50 caliber or greater, excluding standard-issue shotguns and standard-issue shotgun ammunition.
• Specialized firearms and ammunition of less than_.50 caliber, including firearms and accessories identified as assault weapons in Penal Code § 30510 and Penal Code § 30515, with the exception of standard-issue firearms.
• Any firearm or firearm accessory that is designed to launch explosive projectiles. • Noise-flash diversionary devices and explosive breaching tools. • Munitions containing tear gas or OC, excluding standard, service-issued handheld pepper spray.
• TASER® Shockwave, microwave weapons, water cannons, and long-range acoustic devices (LRADs).
• Kinetic energy weapons and munitions.
• Any other equipment as determined by a governing body or a state agency to require additional oversight.

Scotts Valley Police Department
Scotts Valley PD CA Policy Manual
Military Equipment
Copyright Lexipol, LLC 2022/09/01, All Rights Reserved.

Published with permission by Scotts Valley Police Department Military Equipment - 2
706.2 POLICY
It is the policy of the Scotts Valley Police Department that members of this agency comply with the provisions of Government Code § 7071 with respect to military equipment. 706.3 MILITARY EQUIPMENT COORDINATOR
The Chief of Police should designate a member of this agency to act as the military equipment coordinator. The responsibilities of the military equipment coordinator include but are not limited to:
(a) Acting as liaison to the governing body for matters related to the requirements of this policy.
(b) Identifying agency equipment that qualifies as military equipment in the current possession of the Department, or the equipment the Department intends to acquire that requires approval by the governing body.
(c) Conducting an inventory of all military equipment at least annually. (d) Collaborating with any allied agency that may use military equipment within the jurisdiction of Scotts Valley Police Department (Government Code § 7071). (e) Preparing for, scheduling, and coordinating the annual community engagement meeting to include:

1. Publicizing the details of the meeting.

2. Preparing for public questions regarding the agency’s funding, acquisition, and use of equipment.
(f) Preparing the annual military equipment report for submission to the Chief of Police and ensuring that the report is made available on the agency website (Government Code § 7072).
(g) Establishing the procedure for a person to register a complaint or concern, or how that person may submit a question about the use of a type of military equipment, and how the Department will respond in a timely manner.
706.4 MILITARY EQUIPMENT INVENTORY
The following constitutes a list of qualifying equipment for the Department:
[Insert attachment here]
706.5 APPROVAL
The Chief of Police or the authorized designee shall obtain approval from the governing body by way of an ordinance adopting the military equipment policy. As part of the approval process, the Chief of Police or the authorized designee shall ensure the proposed military equipment policy is submitted to the governing body and is available on the agency website at least 30 days prior to any public hearing concerning the military equipment at issue (Government Code § 7071). The military equipment policy must be approved by the governing body prior to engaging in any of the following (Government Code § 7071):

Scotts Valley Police Department
Scotts Valley PD CA Policy Manual
Military Equipment
Copyright Lexipol, LLC 2022/09/01, All Rights Reserved.

Published with permission by Scotts Valley Police Department Military Equipment - 3
(a) Requesting military equipment made available pursuant to 10 USC § 2576a. (b) Seeking funds for military equipment, including but not limited to applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers.
(c) Acquiring military equipment either permanently or temporarily, including by borrowing or leasing.
(d) Collaborating with another law enforcement agency in the deployment or other use of military equipment within the jurisdiction of this agency. (e) Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body.
(f) Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of military equipment.
(g) Acquiring military equipment through any means not provided above. 706.6 COORDINATION WITH OTHER JURISDICTIONS
Military equipment should not be used by any other law enforcement agency or member in this jurisdiction unless the military equipment is approved for use in accordance with this policy. 706.7 ANNUAL REPORT
Upon approval of a military equipment policy, the Chief of Police or the authorized designee should submit a military equipment report to the governing body for each type of military equipment approved within one year of approval, and annually thereafter for as long as the military equipment is available for use (Government Code § 7072).

The Chief of Police or the authorized designee should also make each annual military equipment report publicly available on the agency website for as long as the military equipment is available for use. The report shall include all information required by Government Code § 7072 for the preceding calendar year for each type of military equipment in agency inventory. 706.8 COMMUNITY ENGAGEMENT
Within 30 days of submitting and publicly releasing the annual report, the Department shall hold at least one well-publicized and conveniently located community engagement meeting, at which the Department should discuss the report and respond to public questions regarding the funding, acquisition, or use of military equipment.