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TOWN OF LOS GATOSSPECIAL MEETING OF THE TOWN COUNCIL

AUGUST 15, 2018110 EAST MAIN STREET

LOS GATOS, CA

PARTICIPATION IN THE PUBLIC PROCESS

How to participate: The Town of Los Gatos strongly encourages your active participation in the publicprocess, which is the cornerstone of democracy. If you wish to speak to an item on the agenda,please complete a “speaker’s card” located on the back of the chamber benches and return it to theClerk Administrator. If you wish to speak to an item NOT on the agenda, you may do so during the“Verbal Communications” period. The time allocated to speakers may change to better facilitate theTown Council meeting.

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

Deadlines for Public Comment and Presentations are as follows: Persons wishing to make an audio/visual presentation on any agenda item must submit the

presentation electronically, either in person or via email, to the Clerk’s Office no later than 3:00p.m. on the day of the Council meeting.

Persons wishing to submit written comments to be included in the materials provided to TownCouncil must provide the comments as follows:o For inclusion in the regular packet: by 11:00 a.m. the Thursday before the Council meetingo For inclusion in any Addendum: by 11:00 a.m. the Monday before the Council meetingo For inclusion in any Desk Item: by 11:00 a.m. on the day of the Council Meeting

Rob Rennie, Mayor Steven Leonardis, Vice Mayor

Marcia Jensen, Council Member Marico Sayoc, Council Member

Barbara Spector, Council Member

Town Council Meetings Broadcast Live on KCAT, Channel 15 (on Comcast) on the 1st and 3rd Tuesdays at 7:00 p.m.Rebroadcast of Town Council Meetings on the 2nd and 4th Mondays at 7:00 p.m.

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

IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN THIS MEETING,PLEASE CONTACT THE CLERK DEPARTMENT AT (408) 354-6834. NOTIFICATION 48 HOURS BEFORE THE MEETING WILL ENABLE THE

TOWN TO MAKE REASONABLE ARRANGEMENTS TO ENSURE ACCESSIBILITY TO THIS MEETING [28 CFR §35.102-35.104]

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TOWN OF LOS GATOSSPECIAL MEETING OF THE TOWN COUNCIL

AUGUST 15, 2018

8:00 PM

SPECIAL MEETING CALLED TO ORDER

ROLL CALL

VERBAL COMMUNICATIONS (Members of the public are welcome to address the Town Councilon any matter that is not listed on the agenda. To ensure all agenda items are heard and unlessadditional time is authorized by the Mayor, this portion of the agenda is limited to 30 minutes and nomore than three (3) minutes per speaker. In the event additional speakers were not able to be heardduring the initial Verbal Communications portion of the agenda, an additional Verbal Communicationswill be opened prior to adjournment.)

PUBLIC HEARINGS (Applicants/Appellants and their representatives may be allotted up to a totalof ten minutes maximum for opening statements. Members of the public may be allotted up to threeminutes to comment on any public hearing item. Applicants/Appellants and their representatives maybe allotted up to a total of five minutes maximum for closing statements. Itemsrequested/recommended for continuance are subject to Council’s consent at the meeting.)

1. Consider potential amendments to the North 40 Specific Plan. APN 424-07-009, 010, 024 through027, 031 through 037, 052 through 054, 060, 063 through 065, 070, 081 through 086, 090, 094 through096, 099, 100, 102 through 112, 424-06-115, 116, and 129. Property Owners: Yuki Farms, ETPH, LP,Grosvenor USA Limited, Summerhill N40 LLC, Dodson, Hirschman, Mattes, Ventura Trustee,Moisenco, Los Gatos Medical Offi ce Center LLC, Los Gatos Gateway LLC, MBK Enterprise, Connell,Gin, John & Allison Diep LLC, Bernal, LG Boulevard Holdings LLC, Polaris Navigation, EW RealEstate LLC, Lazaar Enterprises LLC, Kothary, and Swenson Trustee. Applicant: Town of Los Gatos.

(CONTINUED FROM AUGUST 7, 2018 - The Town Council opened and closed the Verbal PublicComment for this item at the August 7, 2018 Town Council Meeting. Written comments arewelcome per the deadlines for public comment. Staff Reports and Attachments can be found onour website under the August 7, 2018 Town Council Agenda.)

Staff ReportAttachment 42 - Public Comments received between 1101 am, Monday, August 7, 2018 to 1100am, Friday, August 10, 2018

2. Consideration of an Interim Urgency Ordinance of the Town Council of the Town of Los Gatos extending for a period of one year the moratorium prohibiting the issuance of land usedevelopment entitlements within the North 40 Specific Plan area until an update to the North 40Specific Plan has been completed. Staff Report Attachment 1 - Draft Ordinance

ADJOURNMENT 2

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

Note: The Town of Los Gatos has adopted the provisions of Code of Civil Procedure §1094.6;litigation challenging a decision of the Town Council must be brought within 90 days after the

decision is announced unless a shorter time is required by State or Federal law.

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PREPARED BY: JOEL PAULSONCommunity Development Director

Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director

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

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT

MEETING DATE: 08/15/2018

ITEM NO:

DATE: AUGUST 10, 2018

TO: MAYOR AND TOWN COUNCIL

FROM: LAUREL PREVETTI, TOWN MANAGER

SUBJECT: CONSIDER POTENTIAL AMENDMENTS TO THE NORTH 40 SPECIFIC PLAN. APN 424-07-009, 010, 024 THROUGH 027, 031 THROUGH 037, 052 THROUGH 054, 060, 063 THROUGH 065, 070, 081 THROUGH 086, 090, 094 THROUGH 096, 099, 100, 102 THROUGH 112, 424-06-115, 116, AND 129. PROPERTY OWNERS: YUKI FARMS, ETPH LP, GROSVENOR USA LIMITED, SUMMERHILL N40 LLC, DODSON, HIRSCHMAN, MATTES, VENTURA TRUSTEE, MOISENCO, LOS GATOS MEDICAL OFFICE CENTER LLC, LOS GATOS GATEWAY LLC, MBK ENTERPRISE, CONNELL, GIN, JOHN & ALLISON DIEP LLC, BERNAL, LG BOULEVARD HOLDINGS LLC, POLARIS NAVIGATION, EW REAL ESTATE LLC, LAZAAR ENTERPRISES LLC, KOTHARY, AND SWENSON TRUSTEE. APPLICANT: TOWN OF LOS GATOS

RECOMMENDATION:

Consider potential amendments to the North 40 Specific Plan.

BACKGROUND:

On August 7, 2018, the Town Council held a continued public hearing to consider amendments to the North 40 Specific Plan, received public testimony, and continued the matter to the August 15, 2018 Town Council meeting with direction to staff to:

Provide information regarding equity of distribution of the development capacity; and Provide information regarding residential design controls to meet affordability targets.

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PAGE 2 of 5SUBJECT: NORTH 40 SPECIFIC PLAN AMENDMENTSAUGUST 10, 2018

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DISCUSSION:

The requested information from the June 5, 2018 meeting is outlined below and is followed by staff responses.

Provide information regarding equity of distribution of the development capacity.

After taking into consideration the proposed square footage provided by Grosvenor Americas, there will be over 200,000 square feet of capacity remaining for use by other property owners in the North 40 Specific Plan area. Additionally, there will also be a minimal amount of residential units remaining.

If the Town Council is interested in a mechanism to distribute the development capacity then one option would be to include the following amendment to the Specific Plan:

Proposed development applications shall not exceed 85 percent of the remaining commercial square footage or number of residential units.

Provide information regarding residential design controls to meet affordability targets.

The only control to meet affordability levels in the Specific Plan is the requirement thata minimum of 20 percent of residential units must be Below Market Price (BMP) units. The Town’s BMP Guidelines require for sale BMP units to be equally split between the Moderate and Low affordability categories. If an applicant applies for a density bonus then the affordability categories are typically Low, Very Low, and/or Extremely Low.

For example, the Phase 1 application included 49 Very Low Income senior units and one Moderate Income manager unit. As Town staff work with the developer on the required BMP agreement for Phase 1, the distribution of the 49 Very Low Income units is 39 Very Low Income units and 10 Extremely Low-Income units. The distribution of the Extremely Low and Very Low-Income units may change based upon the tax credit obtained by the developer.

For reference, the Town’s certified Housing Element identified the potential income distribution for the entire North 40 Specific Plan as 156 Very Low Income, 84 Low Income, and 30 Moderate Income units.

The Town Council might consider unit size limitations as was discussed at the August 7, 2018 Council meeting; and while size may affect the price of the units, there is no guarantee that size alone will deliver affordable housing units.

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DISCUSSION (Continued):

If the Town Council is interested in negotiating the affordability level for BMP units the appropriate mechanism to have these discussions would be in a Development Agreement negotiation process. The Town Council may wish to consider an amendment to the Specific Plan that acknowledges Development Agreements as a potential implementation mechanism for the Specific Plan.

CONCLUSION:

Staff looks forward to the Council’s discussion and specific direction for potential amendments that are agreed upon by the majority of the Town Council. Staff would then bring forward a resolution with all of the proposed amendments for Council consideration at a subsequent regular Town Council meeting.

Public Comments received between 11:01 a.m., Monday, August 7, 2018 to 11:00 a.m., Friday, August 10, 2018 can be found in Attachment 42.

Attachments previously received with October 3, 2017 Study Session Report:1. Town Council Suggestions for Potential Amendments to the adopted North 40 Specific Plan2. December 15, 2016 Planning Commission Staff Report (with Exhibits 1-8)3. December 15, 2016 Planning Commission Addendum Report (with Exhibit 9)4. December 15, 2016 Planning Commission Desk Item Report (with Exhibit 10)5. December 15, 2016 Planning Commission Verbatim Minutes (131 pages)6. January 26, 2017 Planning Commission Staff Report (with Exhibit 11)7. January 26, 2017 Planning Commission Addendum Report (with Exhibit 12)8. January 26, 2017 Planning Commission Desk Item Report (with Exhibit 13)9. January 26, 2017 Planning Commission Verbatim Minutes (115 pages)10. Public Comments received 11:01 a.m. Wednesday, May 10, 2017 to 11:00 a.m., Thursday,

September 28, 201711. Potential amendments based on GPC and PC discussions (including Exhibit A)

Attachments previously received with October 3, 2017 Desk Item Report: 12. Public Comments received 11:01 a.m. Thursday, September 28, 2017 to 11:00 a.m.,

Tuesday, October 3, 2017

Attachments previously received with November 14, 2017 Special Meeting Report:13. North 40 Hotel Site Assessment14. Public Comments received 11:01 a.m. Tuesday, October 3, 2017 to 11:00 a.m., Friday,

November 10, 2017

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PAGE 4 of 5SUBJECT: NORTH 40 SPECIFIC PLAN AMENDMENTSAUGUST 10, 2018

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Attachments previously received with the January 16, 2018 Staff Report:15. Required Findings16. Resolution (including Exhibit A) 17. North 40 Traffic Scenarios18. November 14, 2017 Town Council Meeting Minutes19. Public Comments received 11:01 a.m., Friday, November 10, 2017 to 11:00 a.m., Thursday,

January 10, 2018

Attachments previously received with the Addendum Report:20. Public Comments received 11:01 a.m., Thursday, January 11, 2018 to 11:00 a.m., Friday,

January 12, 2018

Attachments previously received with the Desk Item Report:21. Public Comments received 11:01 a.m., Friday, January 12, 2018 to 11:00 a.m., Tuesday

January 16, 2018

Attachments previously received with the February 6, 2018 Staff Report:22. Public Comments received 11:01 a.m., Tuesday, January 16, 2018 to 11:00 a.m., Thursday

February 1, 2018

Attachments previously received with the Addendum Report:23. Public Comments received 11:01 a.m., Thursday, February 1, 2018 to 11:00 a.m., Monday,

February 5, 2018

Attachments previously received with the February 6, 2018 Desk Item Report:24. Public Comments received 11:01 a.m., Monday, February 5, 2018 to 11:00 a.m., Tuesday,

February 6, 2018Attachments previously received with the March 6, 2018 Desk Item Report:25. Required Findings (Previously received as Attachment 15 with the January 16, 2018 Staff

Report)26. Resolution with Exhibit A (Previously received as Attachment 16 with the January 16, 2018

Staff Report)

Attachments previously received with the June 5, 2018 Staff Report:27. Revised Resolution (including revised Exhibit A)28. City of Los Altos - Exceptions for Public Benefit Excerpt (one page)29. City of Mountain View - San Antonio Precise Plan Excerpt (seven pages)30. City of Mountain View - North Bayshore Precise Plan Excerpt (three pages)31. City of Mountain View - El Camino Real Precise Plan Excerpt (four pages)32. City of Mountain View - Resolution for Public Benefits Minimum Value for El Camino Precise

Plan (two pages)

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33. Culver City - Resolution Establishing the Community Benefit Incentive Program (seven pages)

34. City of Glendale - Incentives and Bonuses Chapter of Downtown Specific Plan (six pages)35. Greenbelt Alliance – Public Benefit Bonus Policy Brief (15 pages)36. Public Comments received between 11:01 a.m., Tuesday, February 6, 2018 to 11:00 a.m.

Thursday, May 31, 2018

Attachments previously received with the August 7, 2018 Staff Report:37. Letter from Grosvenor Americas regarding requested Specific Plan amendments with the

conceptual site plan, received July 31, 2018 (17 pages)38. White paper prepared by the Institute for Local Self Government entitled Development

Agreement Manual

Attachments previously received with the August 6, 2018 Addendum Report:39. Slides from Grosvenor Americas for a presentation to Los Gatos Democracy Tent on August

2, 2018 (17 pages)40. Public Comments received between 11:01 a.m., Thursday, August 2, 2018 to 11:00 a.m.,

Monday, August 6, 2018

Attachments previously received with the August 7, 2018 Desk Item Report:41. Public Comments received between 11:01 a.m., Monday, August 6, 2018 to 11:00 a.m.,

Tuesday, August 7, 2018

Attachments received with this Staff Report:42. Public Comments received between 11:01 a.m., Monday, August 7, 2018 to 11:00 a.m.,

Friday, August 10, 2018

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From: Jessica Waite [mailto:jessicarwaite@gmail.com] Sent: Thursday, August 09, 2018 5:21 PM To: Rob Rennie; Steven Leonardis; Marcia Jensen; Marice Sayoc; BSpector; Town Manager Cc: anna@svathome.org Subject: Affordable Housing

Dear Mayor Rennie, Vice Mayor Leonardis and Town Council Members Jensen, Sayoc, and Spector:

The median home sales price in Los Gatos is now $1.8b million and median rent for all properties in the Town, including all unit sizes, was a staggering $5,200 a month (Trulia, August 2018). These shocking costs are symptomatic of the severe shortage of housing that exists in Los Gatos.

On Tuesday, August 15th, you will have the opportunity to act to alleviate the housing crisis affecting your community and the entire Bay Area. North 40 presents an opportunity for the Town to meaningfully improve housing affordability in Los Gatos. I urge you to do so by taking the following actions:

• Allow a maximum of 455 new homes in the North 40 Specific Plan. North 40 has long been identified as an appropriate location for denser developments and more homes can only add to the vibrancy of the area. There is no justifiable reason for the specific plan to accommodate half of the residential uses allowed in the adopted environmental documents.

• Allow the moratorium on North 40 entitlements to expire. Delays caused by a moratorium only serves to make the housing problem worse and shifts your housing responsibilities to other communities.

Both these actions are critical to ensuring that Los Gatos does its fair share to address the regional housing crisis and I hope you will decide to act in a way that helps to ease the housing CTISlS.

Those who oppose affordable housing are simply NIMBY s. They say affordable housing comes with a 'certain type.' Although it shouldn't matter who needs housing because shelter is a human right, I will tell those who oppose affordable housing that I am a 23-year-old UCLA graduate who has spent nights lying awake thinking about the fact that although I work a full time, salaried position and always put at least 5% of every check into a savings, I will likely never be able to afford a home here, and within a few years, I expect to be forced to move due to the price of rent.

To oppose affordable housing is to hate the poor, to act mercilessly, and to ignore your own privilege. In a few years, it will be your children who can't afford to live in the Bay Area on their own paychecks.

Sincerely, Jessica Waite

ATTACHMENT 4210

From: Kris Campos [mailto:kcamposOlOl@gmail.com] Sent: Friday, August 10, 2018 1:46 AM To: Rob Rennie; Steven Leonardis; Marcia Jensen; Marice Sayoc; BSpector; Town Manager Cc: anna@svathome.org Subject: Affordable housing in Los Gatos

Dear Mayor Rennie, Vice Mayor Leonardis and Town Council Members Jensen, Sayoc, and Spector:

The median home sales price in Los Gatos is now $1.8b million and median rent for all properties in the Town, including all unit sizes, was a staggering $5,200 a month (Trulia, August 2018). These shocking costs are symptomatic of the severe shortage of housing that exists in Los Gatos. On Tuesday, August 15th, you will have the opportunity to act to alleviate the housing crisis affecting your community and the entire Bay Area. North 40 presents an opportunity for the Town to meaningfully improve housing affordability in Los Gatos I urge you to do so by taking the following actions:

Allow a maximum of 455 new homes in the North 40 Specific Plan. North 40 has long been identified as an appropriate location for denser developments and more homes can only add to the vibrancy of the area. There is no justifiable reason for the specific plan to accommodate half of the residential uses allowed in the adopted environmental documents.

Allow the moratorium on North 40 entitlements to expire. Delays cause by a moratorium only serves to make the housing problem worse and shifts your housing responsibilities to other communities. Both these actions are critical to ensuring that Los Gatos does its fair share to address regional housing crisis and I hope you will decide to act in a way that helps to ease the housing crisis.

Sincerely, Kris Campos-Flores

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Hardt Mason Law

August 10, 2018

Katharine L Hardt i'vfason, Esc1. K::tticbardtm,1son(ii 'Olttlook.com

VIA E-MAIL (Counci}rq)LosCatos.ca.g_ov; j\:[an~tgtr~l)J ,os(;arosct.,¥:O\-; JP;u.1lson@J.os(;ilrosc1.&)\'; E~J\l(a',\1<>rimot:oProperties.com)

Mayor Rob Rennie Members of the Town Council Town of Los Gatos 110 E. Main Street Los Gatos, CA 95030

Re: August 15, 2018 Town Council Meeting Extension of Interim Urgency Ordinance 2262 for the North 40 Specific Plan

Dear Mayor Rennie and Councilmembers:

On behalf of the Yuki family, I am writing to express our objection to extension of Interim Urgency Ordinance 2262 and respectfully urge the Council not to adopt it.

\X7hen Interim Urgency Ordinance 2262 was adopted last year, we raised the question as to whether there was truly a "current and immediate threat to the· public health, safety and welfare", as required by Government Code Section 65858. Over the past year it has become abundantly clear that there is no real imminent threat to

the public health, safety and welfare of the citizens of Los Gatos as required by California law, but rather there is a desire to reconsider such issues as the number of housing units, additional open space, and building heights. All of these issues are without a doubt concerns of both the Council and the public, but they do not rise to the threshold required by Government Code Section 65858 in either nature or urgency. As stated by Councilmember Jensen, there is no present application for development of the remainder of the North 40 Specific Plan Area, thereby making the urgency of the matter nothing more than speculative. That being said, these issues are being addressed by the Council which appears close to reaching a resolution making the need to extend Interim Urgency Ordinance 2262 moot.

Please know that the Yuki family supports the actions being taken by the Council to create a project that best suits the needs of the community, but remains concerned with timelines that draw out the process. Extending Interim Urgency Ordinance 2262 does nothing towards reaching the common goal of establishing a plan that is supported by the majority of the community, and for that reason, the Yuki family opposes extension of the Ordinance.

cc: Ed Morimoto Laurel Prevetti, Town Manager

Respectfully,

;f;;t~.aU~t!' cJ1a4,# /Jfa"icu'! Katharine Hardt-Mason

Joel Paulson, Director of Community Development

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PREPARED BY: ROBERT SCHULTZ Town Attorney Reviewed by: Town Manager, Assistant Town Manager, and Finance Director

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

www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT

MEETING DATE: 08/15/2018

ITEM NO: 2

DATE: AUGUST 10, 2018

TO: MAYOR AND TOWN COUNCIL

FROM: LAUREL PREVETTI, TOWN MANAGER

SUBJECT: CONSIDERATION OF AN INTERIM URGENCY ORDINANCE OF THE TOWN

COUNCIL OF THE TOWN OF LOS GATOS EXTENDING FOR A PERIOD OF ONE

YEAR THE MORATORIUM PROHIBITING THE ISSUANCE OF LAND USE

DEVELOPMENT ENTITLEMENTS WITHIN THE NORTH 40 SPECIFIC PLAN

AREA UNTIL AN UPDATE TO THE NORTH 40 SPECIFIC PLAN HAS BEEN

COMPLETED

RECOMMENDATION: Staff recommends that the Town Council open the public hearing and take testimony and documentary evidence. After considering the evidence, consider whether to extend the Interim Urgency Ordinance (Attachment 1). A 4/5 vote is required in order to adopt the ordinance. BACKGROUND: On August 15, 2017, the Town Council adopted Interim Urgency Ordinance 2260 establishing a moratorium on processing future development applications within the North 40 Specific Plan. (“Moratorium”). On September 19, 2017, the Town Council adopted Interim Urgency Ordinance 2262, extending the moratorium on processing future development applications within the North 40 Specific Plan for a period of ten months and fifteen days.

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PAGE 2 OF 4 SUBJECT: INTERIM URGENCY ORDINANCE DATE: AUGUST 10, 2018 BACKGROUND (cont.): On November 14, 2017, the Town Council held a Special Meeting to discuss potential amendments to the North 40 Specific Plan, received public testimony, and provided staff direction for amendments to the North 40 Specific Plan. On January 16, 2018, the Town Council held a noticed public hearing to consider amendments to the North 40 Specific Plan, received public testimony, and continued the matter to the February 6, 2018 Town Council meeting with requests for additional information from staff. Due to the length of time anticipated to consider other items on the February 6, 2018 Town Council agenda this item was continued to the March 6, 2018 meeting. On March 6, 2018, the Town Council held a continued public hearing to consider amendments to the North 40 Specific Plan, received public testimony, and continued the matter to the April 17, 2018 Town Council meeting with requests for additional information from staff. Staff was not able to complete the work associated with the Town Council’s requests for additional information for the April 17, 2018 Town Council meeting and requested that the item be continued to the Town Council meeting on June 5, 2018. On June 5, 2018, the Town Council held a continued public hearing to consider amendments to the North 40 Specific Plan, received public testimony, and continued the matter to the August 7, 2018 Town Council meeting with direction to staff. On August 7, 2018, the Town Council held a continued public hearing to consider amendments to the North 40 Specific Plan, received public testimony, and directed Staff to bring back an ordinance extending the moratorium on processing future development applications within the North 40 Specific Plan. DISCUSSION: The Interim Moratorium Ordinance was adopted pursuant to Government Code section 65858, which provides that an interim urgency ordinance adopted as an urgency measure shall remain in effect for 45 days, unless extended for an additional period of up to 10 months and 15 days, and a second time for up to an additional one year. In addition, Government Code Section 65858 requires that prior to the expiration of an interim urgency ordinance; the Town Council shall issue a written report describing the measures taken to alleviate the conditions that led to adoption of the ordinance. Since the adoption of the Urgency Ordinance was enacted, staff has been analyzing and researching potential suggested amendments and has prepared various redline versions of the North 40 Specific Plan. As set forth above in the Background section, the Council held 6 public hearings to review potential amendments to the North 40 Specific Plan. This Staff Report and all Staff Reports for the

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PAGE 3 OF 4 SUBJECT: INTERIM URGENCY ORDINANCE DATE: AUGUST 10, 2018 DISCUSSION (cont’d): Council Meetings set forth above shall serve as the report required under Section 65858 and describe the steps already undertaken and anticipated by staff leading to future action by Council with regard to updating and amending the North 40 Specific Plan. The current Interim Urgency Ordinance will expire on August 15, 2018. In order to extend the Moratorium Ordinance, the Town Council must make legislative findings that “there is a current and immediate threat to the public health, safety, or welfare, and that the approval of additional subdivisions, use permits, variances, or other entitlements would result in that threat to public health, safety, or welfare.” It is staff’s position that the conditions that existed a year ago which led to the adoption of the moratorium do not exist today and therefore do not support the extension of the Interim Urgency Ordinance. Staff does not support the extension since such ordinances, often referred to as "stop-gap" or "incubation period" ordinances, should only prohibit a property owner from using his or her property for a specified use for a limited period of time. Silvera v. City of South Lake Tahoe; Fletcher v. Porter; Mang v. County of Santa Barbara, CEEED v. California Coastal Zone Conservation Com. Numerous court cases have stated that the determination of the validity of a zoning ordinance will hinge upon whether it is reasonable or arbitrary and oppressive and “a temporary restriction upon land use may be a mere inconvenience where the same restriction indefinitely prolonged might possibly metamorphize into oppression.” Metro Realty v. County of El Dorado. For approximately 6 of the past 8 years, the Town has had a moratorium on any development applications (not just for a specified use) within the North 40 Specific Plan area. It is staff’s opinion that six years is too long to be considered a “stop-gap" or "incubation period." In addition, the courts have limited the extension of an interim ordinance to those situations where actual approval of an entitlement is imminent and there is ample testimony on the record that the North 40 property owners will not be filing development applications in the near future. Building Industry Legal Defense Foundation v. Superior Court. Extending the moratorium to reconsider such issues as the number of housing units, additional open space, and building heights, or to evaluate the impacts of Phase I, or because of current traffic congestion, are not legitimate findings under Government Code Section 65858. If the Town Council chooses to extend the Interim Urgency Ordinance, it will need to state on the record the necessary findings to adopt the attached ordinance. A 4/5 vote is required by the Town Council in order to adopt the ordinance. If adopted, the ordinance may also be terminated by Town Council vote at any time prior to its end date.

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PAGE 4 OF 4 SUBJECT: INTERIM URGENCY ORDINANCE DATE: AUGUST 10, 2018 ENVIRONMENTAL ASSESSEMENT: The proposed extension of the Moratorium is exempt from review under the California Environmental Quality Act (“CEQA”) pursuant to sections 15060(c) (2), 15060(c) (3) and 15601(b) (3) of the CEQA Guidelines, because the action will not result in a direct or reasonably feasible indirect physical change in the environment. This Ordinance, therefore, is categorically exempt from further CEQA review under CEQA Guidelines. This Ordinance does not authorize any new construction or development entitlements. Any proposed project that will utilize the changes set forth in this Ordinance will be subject to CEQA review as part of the entitlement review of the project. The Ordinance will not adversely impact the environment and is therefore exempt from the provisions of CEQA. FISCAL ANALYSIS: Continuing the Moratorium will require a significant commitment of staff time. While funding this staff time does not require an additional appropriation, it will require staff to adjust its priorities in working on other issues. Attachments: 1. Interim Urgency Ordinance Extending Moratorium.

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Page 1 of 4

ATTACHMENT 1

ORDINANCE 2018-

AN INTERIM URGENCY ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF

LOS GATOS EXTENDING FOR A PERIOD OF ONE YEAR THE MORATORIUM PROHIBITING THE ISSUANCE OF LAND USE DEVELOPMENT ENTITLEMENTS WITHIN THE NORTH 40 SPECIFIC PLAN AREA UNTIL AN UPDATE TO THE NORTH 40 SPECIFIC

PLAN HAS BEEN COMPLETED

WHEREAS, on August 15, 2017, in accordance with Government Code section 65858,

the Town Council at a duly noticed public meeting took testimony and adopted Interim

Ordinance 2260, an urgency interim ordinance that prohibited, for a period of 45 days the

processing or approval of any land use development entitlements in the North 40 Specific Plan

Area pending completion of the updates to the North 40 Specific Plan; and

WHEREAS, on September 19, 2017, in accordance with Government Code section

65858, the Town Council at a duly noticed public meeting took testimony and adopted Interim

Ordinance 2262 , an urgency interim ordinance that prohibited, for a period of ten months and

fifteen days the processing or approval of any land use development entitlements in the North

40 Specific Plan area pending completion of the updates to the North 40 Specific Plan.

("Extension Ordinance"); and

WHEREAS, on August 15, 2018, in accordance with Government Code section 65858,

the Town Council at a duly noticed public meeting took testimony regarding this urgency

ordinance to extend Interim Ordinance 2262; and

WHEREAS, the Town Council has considered, and by adopting this Extension Ordinance

ratifies and adopts, the report, which is incorporated in the Staff Report dated August 10, 2018,

describing the measures taken to date to alleviate the conditions which led to the adoption of

Ordinance 2260 and 2262; and

WHEREAS, because the conditions justifying the adoption of Interim Ordinance 2260

and 2262 have not been alleviated, the Town Council now desires to extend the moratorium

Draft Ordinance: subject to modification by Town Council based on deliberations and direction

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Page 2 of 4

ATTACHMENT 1

established by Interim Ordinance 2262 for an additional year, as permitted by Government

Code Section 65858(b); and

WHEREAS, the Town Council finds that this Extension Ordinance is not subject to the

California Environmental Quality Act ("CEQA") (Public Resources Code sections 21000 et seq.),

because it will not result in a direct or reasonably foreseeable indirect physical change in the

environment because this Extension Ordinance prevents changes in the environment pending

the contemplated review of the Specific Plan. CEQA Guidelines, sections 15060(c)(2).

NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS, DOES ORDAIN

AS FOLLOWS:

SECTION 1. The Town Council of the Town of Los Gatos finds that the above recitals

are true and correct.

SECTION 2. This Extension Interim Urgency Ordinance prohibits the Town Council,

Planning Commission, and the Community Development Department from approving any

planning permits, preliminary development plans, final development plans, subdivisions,

discretionary permits or any other land use development entitlements in the North 40 Specific

Plan area pending completion of the updates to the North 40 Specific Plan.

SECTION 3. This Extension Interim Urgency Ordinance shall not prohibit the issuance

of a building permit for any use which has secured all necessary planning permits, preliminary

development plan, final development plan, subdivision, and/or any other required discretionary

permit from the Town of Los Gatos within the North 40 Specific Plan area.

SECTION 4. This Extension Interim Urgency Ordinance is enacted pursuant to the

authority conferred upon the Town Council of the Town of Los Gatos by Government Code

Sections 65858, 36934, and 36937, and shall be in full force and effect immediately upon its

adoption by a four-fifths (4/5) vote of the Town Council as if and to the same extent that such

Ordinance had been adopted pursuant to each of the individual sections set forth herein above.

SECTION 5. In adopting this Extension Interim Urgency Ordinance, the Town Council

finds and determines that each of the recitals contained in Interim Urgency Ordinance 2260 and

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2262 are true and correct, and that the adoption of this Extension Interim Urgency Ordinance is

necessary to protect the public safety, health, and welfare, as those terms are defined in

Government Code Section 65858(a).

SECTION 6. Adoption of this Extension Interim Urgency Ordinance is exempt from

further environmental review under the California Environmental Quality Act (California Public

Resources Code §§ 21000, et seq., “CEQA”) and the CEQA Guidelines (14 California Code of

Regulations §§ 15000, et seq.) because it establishes rules and procedures for minor alterations

in land use. This Extension Interim Urgency Ordinance, therefore, is categorically exempt from

further CEQA review under the CEQA Guidelines §15305. This Extension Interim Urgency

Ordinance does not authorize any new construction or development entitlements. Any

proposed project that will utilize the changes set forth in this Extension Interim Urgency

Ordinance will be subject to CEQA review as part of the entitlement review of the project. The

Extension Interim Urgency Ordinance will not adversely impact the environment and is

therefore exempt from the provisions of CEQA.

SECTION 7. In accordance with the provisions of Government Code section 65858(b),

this Extension Interim Urgency Ordinance shall be of no further force or effect one year from

August 15, 2018.

SECTION 8. This ordinance shall be published as provided in Government Code section

36933.

SECTION 9. If any section, subsection, sentence, clause, or phrase of this Extension

Interim Urgency Ordinance is for any reason held to be invalid or unconstitutional by a decision

of any court of any competent jurisdiction, such decision shall not affect the validity of the

remaining portions of this Extension Interim Urgency Ordinance. The Town Council hereby

declares that it would have passed this Extension Interim Urgency Ordinance, and each and

every section, subsection, sentence, clause, and phrase thereof not declared invalid or

unconstitutional without regard to whether any portion of the Extension Interim Urgency

Ordinance would be subsequently declared invalid or unconstitutional.

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PASSED AND ADOPTED by the Town Council of the Town of Los Gatos at a regular public

meeting held on the 15th day of August on a motion of _______________________, seconded

by ______________________________, and on the following vote:

COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN SIGNED:

MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA

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