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HomeMy WebLinkAbout2019-01-30 Planning & transportation commission Agenda Packet_______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2.The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3.The Chair may reduce the allowed time to speak to two minutes or less to accommodate a larger number of speakers. Planning & Transportation Commission Regular Meeting Agenda: January 30, 2019 Council Chambers 250 Hamilton Avenue 6:00 PM Call to Order / Roll Call Oral Communications The public may speak to any item not on the agenda. Three (3) minutes per speaker.1,2 Agenda Changes, Additions, and Deletions The Chair or Commission majority may modify the agenda order to improve meeting management. City Official Reports 1.Assistant Directors Report, Meeting Schedule and Assignments Study Session Public Comment is Permitted. Three (3) minutes per speaker.1,3 2.Study Session to Review and Provide Comment to Public Works Staff Regarding the Draft Green Stormwater Infrastructure (GSI) Plan. The City is subject to the requirements of the Municipal Regional Stormwater National Pollutant Discharge Elimination System Permit (MRP), which became effective on January 1, 2016. A section of the MRP requires Permittees to develop and implement long-term GSI Plans for the inclusion of GSI measures into storm drain infrastructure on public and (sometimes)private property, including streets, roads, parking lots, roofs, and other elements. The Plan Must Be Completed and Approved by September 30, 2019. For More Information, Contact Pamela Boyle Rodriguez at Pamela.BoyleRodriguez@cityofpaloalto.org Action Items Public Comment is Permitted. Applicants/Appellant Teams: Fifteen (15) minutes, plus three (3) minutes rebuttal. All others: Three (3) minutes per speaker.1,3 3.Public Hearing: Recommendation to the City Council of an Ordinance Amending Section 18.18.120 (Grandfathered Uses and Facilities) of Chapter 18.18 (Downtown Commercial District) of Title 18 (Zoning) of the Palo Alto Municipal Code (PAMC) to REVISED At Place Memo _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2.The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3.The Chair may reduce the allowed time to speak to two minutes or less to accommodate a larger number of speakers. Adjust Regulations Relating to Noncomplying Facilities. California Environmental Quality Act (CEQA): This Ordinance is Within the Scope of the Comprehensive Plan Environmental Impact Report (EIR) certified and adopted on November 13, 2017 by Council Resolution No. 9720; the Ordinance is Also Exempt From Environmental Review, Under CEQA Guidelines Section 15061 (b) (3). For More Information, Contact Amy French at Amy.French@cityofpaloalto.org Approval of Minutes Public Comment is Permitted. Three (3) minutes per speaker.1,3 4.December 12, 2018 Draft Planning & Transportation Commission Meeting Minutes Election of Chair and Vice Chair Commissioner Questions, Comments, Announcements or Future Agenda Items Adjournment December 12, 2018 Draft Minutes _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to two minutes or less to accommodate a larger number of speakers. Palo Alto Planning & Transportation Commission Commissioner Biographies, Present and Archived Agendas and Reports are available online: http://www.cityofpaloalto.org/gov/boards/ptc/default.asp. The PTC Commission members are: Chair Ed Lauing Commissioner Michael Alcheck Commissioner William Riggs Commissioner Giselle Roohparvar Commissioner Doria Summa Commissioner Carolyn Templeton Commissioner Asher Waldfogel Get Informed and Be Engaged! View online: http://midpenmedia.org/category/government/city-of-palo-alto/ or on Channel 26. Show up and speak. Public comment is encouraged. Please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Commission Secretary prior to discussion of the item. Write to us. Email the PTC at: Planning.Commission@CityofPaloAlto.org. Letters can be delivered to the Planning & Community Environment Department, 5th floor, City Hall, 250 Hamilton Avenue, Palo Alto, CA 94301. Comments received by 2:00 PM two Tuesdays preceding the meeting date will be included in the agenda packet. Comments received afterward through 2:00 PM the day of the meeting will be presented to the Commission at the dais. Material related to an item on this agenda submitted to the PTC after distribution of the agenda packet is available for public inspection at the address above. Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329-2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service. Planning & Transportation Commission Staff Report (ID # 9774) Report Type: City Official Reports Meeting Date: 1/30/2019 City of Palo Alto Planning & Community Environment 250 Hamilton Avenue Palo Alto, CA 94301 (650) 329-2442 Summary Title: City Official Report Title: Assistant Directors Report, Meeting Schedule and Assignments From: Jonathan Lait Recommendation Staff recommends that the Planning and Transportation Commission (PTC) review and comment as appropriate. Background This document includes the following items: • PTC Meeting Schedule • PTC Representative to City Council (Rotational Assignments) • Tentative Future Agenda Commissioners are encouraged to contact Yolanda Cervantes (Yolanda.Cervantes@CityofPaloAlto.org) of any planned absences one month in advance, if possible, to ensure availability of a PTC quorum. PTC Representative to City Council is a rotational assignment where the designated commissioner represents the PTC’s affirmative and dissenting perspectives to Council for quasi- judicial and legislative matters. Representatives are encouraged to review the City Council agendas (http://www.cityofpaloalto.org/gov/agendas/council.asp) for the months of their respective assignments to verify if attendance is needed or contact staff. Prior PTC meetings are available online at http://midpenmedia.org/category/government/city-of-palo-alto/boards- and-commissions/planning-and-transportation-commission. The Tentative Future Agenda provides a summary of upcoming projects or discussion items. Attachments: • Attachment A: January 30, 2019 PTC Meeting Schedule and Assignments (DOCX) Draft Planning & Transportation Commission 2019 Meeting Schedule & Assignments 2019 Schedule Meeting Dates Time Location Status Planned Absences 1/30/2019 6:00 PM Council Chambers Regular 2/13/2019 6:00 PM Council Chambers Regular 2/27/2019 6:00 PM Council Chambers Regular 3/13/2019 6:00 PM Council Chambers Regular 3/27/2019 6:00 PM Council Chambers Regular 4/10/2019 6:00 PM Council Chambers Regular 4/24/2019 6:00 PM Council Chambers Regular 5/08/2019 6:00 PM Council Chambers Regular 5/29/2019 6:00 PM Council Chambers Regular 6/12/2019 6:00 PM Council Chambers Regular 6/26/2019 6:00 PM Council Chambers Regular 7/10/2019 6:00 PM Council Chambers Regular 7/31/2019 6:00 PM Council Chambers Regular 8/14/2019 6:00 PM Council Chambers Regular 8/28/2019 6:00 PM Council Chambers Regular 9/11/2019 6:00 PM Council Chambers Regular 9/25/2019 6:00 PM Council Chambers Regular 10/09/2019 6:00 PM Council Chambers Regular 10/30/2019 6:00 PM Council Chambers Regular 11/13/2019 6:00 PM Council Chambers Regular 12/11/2019 6:00 PM Council Chambers Regular 2019 Assignments - Council Representation (primary/backup) January February March April May June Doria Summa Asher Waldfogel Ed Lauing Michael Alcheck Billy Riggs Cari Templeton Michael Alcheck Billy Riggs Doria Summa Asher Waldfogel Ed Lauing Michael Alcheck July August September October November December Ed Lauing Giselle Roohpavar Michael Alcheck Cari Templeton Billy Riggs Doria Summa Billy Riggs Doria Summa Cari Templeton Ed Lauing Giselle Roohpavar Ed Lauing Draft Planning & Transportation Commission 2019 Tentative Future Agenda January 22, 2019 Draft-All Dates and Topics Subject to Change The Following Items are Tentative and Subject to Change: Meeting Dates Topics February 13, 2019 • 1700 Embarcadero Road Mercedes/Audi • Comprehensive Plan Annual Report February 27, 2019 • 190 Channing Avenue: Vesting Tentative Map • 470 Olive Avenue: Non-Conforming Use Exception Planning & Transportation Commission Staff Report (ID # 9997) Report Type: Study Session Meeting Date: 1/30/2019 City of Palo Alto Planning & Community Environment 250 Hamilton Avenue Palo Alto, CA 94301 (650) 329-2442 Summary Title: Green Stormwater Infrastructure Plan Title: Study Session to Review and Provide Comment to Public Works Staff Regarding the Draft Green Stormwater Infrastructure (GSI) Plan. The Municipal Regional Stormwater National Pollutant Discharge Elimination System Permit (MRP), requires the City to develop and implement long-term GSI Plans for the inclusion of GSI measures into storm drain infrastructure on public and (sometimes)private property, including streets, roads, parking lots, roofs, and other elements. The Plan Must Be Completed and Approved by September 30, 2019. For More Information, Contact Pamela Boyle Rodriguez at Pamela.BoyleRodriguez@cityofpaloalto.org<<Title>> From: Jonathan Lait RECOMMENDATION It is recommended that the Planning and Transportation Commission review and provide comments on the draft Green Stormwater Infrastructure Plan. BACKGROUND This informational report is intended to provide additional background to the Commission regarding the City of Palo Alto’s (City) Green Stormwater Infrastructure (GSI) Plan (Plan), currently an 85% DRAFT version (see attached and posted at cityofpaloalto.org/gsi). In order to meet the timeline set by the Regional Water Quality Control Board (Water Board), the City Council must accept the new plan by June 30, 2019. GSI uses vegetation, soils, and natural processes to manage stormwater runoff (Figure 1). Where feasible, the City hopes to gradually integrate GSI features into its urban landscape and stormwater conveyance systems over several decades. This process will, in time, create a more resilient, sustainable system that will carry out one or more of the following functions: City of Palo Alto Planning & Community Environment Department Page 2 1) reduces, slows and detains runoff by dispersing it to vegetated areas; 2) promotes infiltration and evapotranspiration; 3) collects runoff for non-potable uses; 4) treats runoff using biotreatment and other GSI practices; and 5) incorporates landscaping features within areas that encourage more pedestrian and bicycle safety. The City is subject to the requirements of the Municipal Regional Stormwater National Pollutant Discharge Elimination System (NPDES) Permit in the San Francisco Bay Area (Order R2-2015-0049,) also known as the Municipal Regional Permit (MRP), which became effective on January 1, 2016. The MRP applies to 76 municipalities and flood control agencies that discharge stormwater to the San Francisco Bay (Bay). Under the MRP and previous permits, new development and redevelopment projects on private and public property that exceed certain size thresholds have been required to mitigate water quality impacts by incorporating site design, pollutant source control and stormwater treatment measures. One of the requirements of the current MRP is to identify public (and potentially) private opportunities to integrate GSI measures on parcels, roofs, streets, parking lots, and other elements beyond the current threshold requirements. The GSI Plan serves to meet the MRP requirement and outlines how the City aims to transform its stormwater infrastructure and impervious surfaces over years to come. Prior to Plan development, the Permit required the approval of the Green (Stormwater) Infrastructure Plan Framework (outline document) by June 30, 2017. The Framework document was signed by the City Manager and timely submitted to the Regional Water Quality Control Board (Water Board) by September 30, 2017 as an attachment to the City’s 2017 Regulatory Annual Report. City of Palo Alto Planning & Community Environment Department Page 3 Figure 1. Examples throughout Palo Alto The GSI Plan contains certain mandatory elements (per the MRP) as well as other elements desired by the City. The GSI Plan elements are briefly listed below. • Project Identification and Prioritization Process for planned and proposed projects • Impervious Surface Targets • Project Tracking System • Construction Guidelines and Specifications • Integration with Current and Future Plans • Evaluation of Funding Options • Implementation Plan & Schedule • Outreach and Education Internal and external collaboration during the Plan development process involved creating a GSI Workgroup, made up of staff from various City departments, with meetings that began in March 2017. In addition, GSI Plan updates have been presented regularly to the Stormwater Management Oversight Committee (SWMOC), which is made up of City Council-appointed residents and was formed to review expenditures of the City’s Stormwater Management Fee. City of Palo Alto Planning & Community Environment Department Page 4 Additional presentations to City Commissions and the public include: 1) Parks and Recreation Commission (Nov. 2018 and Jan. 2019); 2) Planning and Transportation Commission (Jan. 2019); and 3) a public meeting (tentatively planned for end of March). The 85% Plan has been posted on the City’s GSI webpage (www.cityofpaloalto.org/gsi). Finally, outreach efforts have included a City utility bill insert in August 2018 and the establishment of a City webpage (www.cityofpaloalto.org/gsi) to provide information about GSI and the Plan. The website will be periodically updated, and once available, the Draft GSI Plan will be posted on the webpage for review. DISCUSSION This presentation summarizes the 85% DRAFT version of the GSI Plan. The following briefly describes some of the key items that were addressed in the Plan as implementation actions to meet Permit requirements. 1. Updates to City Plan and Policies a. Per the MRP, the City must update or modify all of its planning documents to incorporate GSI-related language by the end of the Permit term (end of calendar year 2020). The Plan describes all documents that were reviewed and to what extent each needs to be updated. Staff will coordinate with the appropriate departments to amend plans and documents. The following describes changes to plans and programs that staff intends to address first. b. Action: Comprehensive Plan The Comprehensive Plan serves as the primary tool for guiding the future development of the City. The 2017 update includes language to promote GSI and support the GSI Plan. However, there are opportunities to expand GSI language and to clearly connect this Plan to the GSI Plan. Staff recommends that a memo addressing the link with the GSI Plan be attached to the current Comprehensive Plan. Further integration of GSI language will be included in the next Plan update. c. Action: Bicycle and Pedestrian Transportation Plan (BPTP) Because the timeline of the next BPTP update is unknown, an interim policy will be drafted in the short term to direct that future Department of Transportation (DOT) projects be evaluted to include GSI. A subsequent phase would involve a comprehensive BPTP update to be led by the DOT, which would establish street design standards that not only consider pedestrian, bike and school safety, but also address the establishment of GSI. d. Action: Storm Drain Master Plan (SDMP) The next update to the SDMP will include an analysis of how the integration of both traditional and green stormwater infrastructure (GSI) can be designed to provide adequate capacity for all size storms. The analysis will consider using GSI in areas that experience ponding as well as in combination with larger pipe infrastructure (designed to treat 10-year storms). As with the City of Palo Alto Planning & Community Environment Department Page 5 BPTP, an interim policy will be drafted to ensure GSI is considered when storm drain infrastructure system improvements occur. When the SDMP is updated, GSI language and the feasibility of GSI integration into the City’s storm drain system will be included. e. Action: Street and Sidewalk Improvements Program Since streets and associated impervious surfaces are direct stormwater runoff conduits, it is a clear fit to integrate GSI into this program. This will not only meet MRP requirements, but also support meeting multiple Departmental goals. Although streets may sometimes be improved at the surface (some types of GSI are installed below the ground surface), it is important to nevertheless establish a standard that each project be assessed using GSI feasibility tools. Although a plan is not in place for this Program, a policy will be established to guide how all future improvements are constructed and designed in regards to GSI. This policy will be adjusted over time as needed and as funding becomes available. f. Action: Capital Improvement Projects (CIPs) As required by the MRP, staff that manages CIPs, including construction, facility and infrastructure improvements, and major utility upgrades, must evaluate projects for GSI opportunities. An internal policy will be established to direct staff to follow a GSI evaluation process to ensure full staff participation. 2. Details and Specifications Manual a. The City does not have standard engineering specifications or design guidelines for GSI features that can be used consistently for public and private projects. b. Action: The City will contract with a consultant to create City-specific engineering designs that will be vetted by all Departments. Watershed Protection Group (WPG) staff met with City staff in October 2018 to develop a list of criteria that will inform a Scope of Work for the Request for Proposals. 3. Maintenance and Monitoring Plan a. Current features at City facilities and right-of-way areas may not be maintained using best practices and, thus, may not be as effective as the intention of design. b. Action: i. The City will contract with a consultant to create a Maintenance & Monitoring Plan. ii. Coordinate the development and regular implementation of maintenance agreements for each public site. Responsibilities and best practices will be clearly identified and revisited on a yearly basis. 4. Internal Procedures City of Palo Alto Planning & Community Environment Department Page 6 a. Standardized processes and tools need to be in place to guide staff in determining feasibility of the addition of GSI to a project and to avoid missed opportunities. b. Action: i. Establish a map-based, evaluation and tracking process to evaluate future (City) projects at the scoping phase for the opportunity to include GSI measures. ii. Conduct regular coordination meetings led by the Stormwater Program to ensure this process is followed. 5. Education and Outreach a. Need for increased understanding of community-wide benefits of GSI (e.g., stormwater capture and reuse). b. Action: The City will contract with a consultant to create an outreach strategy and plan with adequate tools to increase support for the implementation of the GSI Plan. 6. Funding a. Although the City’s residents have demonstrated their high level of commitment to stormwater issues by voting to implement a stormwater management fee to fund stormwater projects in the City, a limited proportion is allocated for GSI. b. Action: Short-Term Funding Needs and Opportunity Analysis (Phase 1) WPG staff has contracted with a consultant to conduct a short-term analysis by late spring of 2019. This analysis will identify several methods that may serve as best-fit, feasible options for the City. This analysis will also identify lessons learned and questions to be further explored during the long-term funding needs and opportunity analysis. c. Action: Long-Term Funding Needs and Opportunity Analysis (Phase 2) The City will contract with a consultant to expand upon the short-term analysis in fiscal years 20-21. These funding options would ultimately help fund both construction and maintenance of GSI features. 7. Private Property Opportunities a. GSI implementation is limited to public property in the 85% GSI Plan. b. Action: In order to increase the impact of GSI throughout the entire City, it is imperative to consider the establishment of additional requirements for private property, as well as creation of incentives that will reward property owners for installing and maintaining GSI beyond requirements. Through the update of Chapter 16.11 of the Municipal Code (to be adopted by Council by July 2019), (most) new development and redeveloped sites (both public and private) will be City of Palo Alto Planning & Community Environment Department Page 7 required to install on-site low impact development (LID). LID is a subset of larger-scale GSI systems, which focuses on practices that can be employed at the site-level to control stormwater. This translates into designing a site to reduce impervious cover, or at least retain the pre-development impervious cover at the same amount, therefore limiting the amount of runoff created on the site. Site design can include disconnecting downspouts and diverting site runoff to landscaping or other permeable features to infiltrate all or the majority of runoff (created by large or long-term storms), thereby managing the amount of pollutants and flows created on-site. LID, however, generally focuses on reducing site runoff rather than removing or treating stormwater runoff pollutants. Therefore, in FY2020, following the acceptance of this Plan, it would be a logical step to investigate other options to increase private property GSI, which can also be designed to decrease pollutant loads to creeks and the Bay. Examples of options to be explored include, but are not limited to, the following: i. Decreasing the size threshold trigger for stormwater treatment; ii. Providing incentives, such as expedited permitting and/or reduced permit fees, for projects that install measures beyond the requirement; and iii. New development projects are sometimes required to construct new or improve right-of-way features via requirements from other City divisions. Projects that meet a set of criteria (to be determined) could be required to also install GSI features in the right-of-way. 8. Rating and Performance Tools a. The design, construction, and maintenance of current GSI features is not evaluated in a way that provides transparency to the use of public funds or effectiveness. b. Action: City staff will evaluate the integration of a rating and performance tool in FY2021, following the approval of the GSI Plan. Rating and performance tools can be used to holistically manage complex projects that can meet multiple objectives of various departments, support the City’s Comprehensive and Sustainability Plans (among others), and provide accurate, data-supported results to the public. Such a tool can be integrated into the GSI evaluation process and follow projects through the design, construction and maintenance phases. ENVIRONMENTAL REVIEW This is a planning study and therefore does not require California Environmental Quality Act review, because the Plan does not meet the definition of a project under Public Resources Code City of Palo Alto Planning & Community Environment Department Page 8 21065. An environmental assessment in accordance with CEQA will be prepared for each constructed project. NEXT STEPS The GSI Plan must be adopted by City Council by June 30, 2019 in order to meet the required MRP timeline. The following is a brief schedule to complete the development of and ensure City Council’s acceptance of the GSI Plan. Table 1. GSI Plan Timeline Task Due Date (50%) DRAFT GSI Plan June 2018 1st Parks and Recreation Commission presentation November 2018 (85%) DRAFT GSI Plan January 2019 2nd Parks and Recreation Commission presentation January 2019 Planning and Transportation Commission presentation January 2019 FINAL DRAFT GSI Plan (100%) March 2019 Finalized GSI Plan for CITY COUNCIL Acceptance April 2019 CITY COUNCIL Acceptance of GSI Plan June 2019 Report Author & Contact Information PTC1 Liaison & Contact Information Pam Boyle Rodriguez Jonathan Lait, AICP, Assistant Director 650.329.2421 (650) 329-2679 Pamela.boylerodriguez@cityofpaloalto.org jonathan.lait@cityofpaloalto.org 1 Emails may be sent directly to the PTC using the following address: planning.commission@cityofpaloalto.org Planning & Transportation Commission Staff Report (ID # 9945) Report Type: Action Items Meeting Date: 1/30/2019 City of Palo Alto Planning & Community Environment 250 Hamilton Avenue Palo Alto, CA 94301 (650) 329-2442 Summary Title: Grandfathered Facilities Ordinance Title: Public Hearing: Recommendation to the City Council of an Ordinance Amending Section 18.18.120 (Grandfathered Uses and Facilities) of Chapter 18.18 (Downtown Commercial District) of Title 18 (Zoning) of the Palo Alto Municipal Code (PAMC) to Adjust Regulations Relating to Noncomplying Facilities. California Environmental Quality Act (CEQA): This Ordinance is Within the Scope of the Comprehensive Plan Environmental Impact Report (EIR) certified and adopted on November 13, 2017 by Council Resolution No. 9720; the Ordinance is Also Exempt From Environmental Review, Under CEQA Guidelines Section 15061 (b) (3). For More Information, Contact Amy French at Amy.French@cityofpaloalto.org From: Jonathan Lait Recommendation Staff recommends the Planning and Transportation Commission (PTC) take the following action(s): 1. Recommend the City Council adopt the proposed ordinance amending PAMC Chapter 18.18, Commercial Downtown (CD) District Regulations Section 18.18.120, Grandfathered Facilities (Attachment A). Background Last summer, staff learned of a recent change to the grandfathering language in Chapter 18.18 (Commercial Downtown (CD) District) of the Zoning Code. The change may have been unintentional and occurred in January 2016 when the Council adopted a wide ranging set of minor or clarifying zoning amendments. Among those amendments, staff highlighted a change to PAMC Section 18.18.120 (Grandfathered Uses and Facilities) that clarifies when minor modifications to the building envelope of a non-complying building are permitted for the purpose of improving the structure’s pedestrian-oriented features. City of Palo Alto Planning & Community Environment Department Page 2 The 2016 amendments also included a change requiring non-complying buildings to retain the same use of the property when remodeling, improving, or replacing the building. Before the amendment, land uses in non-complying buildings, or facilities, could be replaced with other land uses provided they were permitted or conditionally permitted in the zone and met other applicable requirements. This latter amendment was included in the 2016 ordinance as presented to both the PTC and the City Council, and it was duly enacted pursuant to the Palo Alto Municipal Code. The change was not, however, highlighted in the ordinance, and the accompanying staff reports included no reference or policy analysis related to the change. Based on the foregoing, staff believe the regulation prohibiting a change of use in non-complying buildings may have been an error made when drafting the ordinance. On December 10, 2018, the City Council conducted a public hearing on possibly restoring the code to the pre-2016 language. Before taking action on the ordinance, however, Council directed the amendment be reviewed by the Planning and Transportation Commission and that it include a provision that limits residential conversions to non-residential uses in noncomplying facilities. The subject regulations only apply in the downtown commercial zoning district. The ordinance is expected to return to the Council during the first quarter 2019. The Council report of December 10, 2018 providing further background is viewable at this link: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=62472.03&BlobID=67962 The Action Minutes from the meeting are viewable here: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=52082.73&BlobID=68210 Discussion Palo Alto’s zoning code, like most in California and elsewhere, have regulations that control what an owner can do when they have either a land use or building that does not conform to current standards. Typically, non-complying uses are permitted to continue in a building but may not be altered, changed or expanded in a manner that increases the degree of non- compliance. Similarly, non-complying buildings can be altered or remodeled, and in some instances in Palo Alto, rebuilt, provided, again, there is no increase to the degree of non- compliance with any physical development standards. It is unusual, however, for local zoning ordinances to restrict changes among lawfully permitted land uses in non-complying buildings. Staff became aware of the code change after new owners of the President Hotel announced their interest in converting its residential units to a hotel. This property has received a considerable amount of attention, but there are lesser known examples that are impacted by this code provision. The Cheesecake Factory recently closed its doors on University Avenue and the property owner is seeking to convert this space into a retail use but is unable to renovate for a retail use under the current code. A restaurant/wine bar that is located in a building City of Palo Alto Planning & Community Environment Department Page 3 slightly over the maximum allowed floor area is seeking to occupy a former retail space but is unable to make necessary structural changes to the building. The former North Face building on Alma, after being vacant for an extended period of time, proposed to change the retail space to a personal service use and has been prevented from doing so. In the case of the President Hotel, the applicant has asserted that application of the current code would run afoul of the Ellis Act, among other state laws. The proposed ordinance seeks to revert the Downtown non-complying facilities regulations back to the pre-2016 standard. This involves a modest adjustment striking the operable clause in PAMC Section 18.18.120 (b)(2). Further, based on Council direction, the ordinance also includes a provision that prevents the conversion of residential portions of non-complying facilities from converting to non-residential area, unless a waiver is received from the City due to a violation of state or federal law (i.e.; Ellis Act). This waiver may apply to other sections of the Code (e.g. the City’s condo conversion ordinance), depending on the claimed issue. Specifically, the updated code provision, as proposed, reads as follows: (b) Grandfathered Facilities (1) Any noncomplying facility existing on August 28, 1986 and which, when built, was a complying facility, may remain as a grandfathered facility and shall not be subject to the provisions of Chapter 18.70. (2) The grandfathered facilities in subsection (1) shall be permitted to remodel, improve, or replace site improvements on the same site for continual use and occupancy, by the same use, provided such remodeling, improvement, or replacement complies with all of the following: (A) shall not result in increased floor area; (B) shall not relocate below grade floor area to above grade portions of the building; (C) shall not result in an increase of the height, length, building envelope, building footprint, or any other increase in the size of the improvement; (D) shall not increase the degree of noncompliance, except pursuant to the exceptions to floor area ratio regulations set forth in Section 18.18.070; (E) The Director may approve minor changes to the building’s footprint, height, length, and the building envelope through Architectural Review of minor aesthetic architectural improvements and to improve pedestrian-orientation provided there is no increase to the degree of any non-complying feature. (F) The residential portion of any grandfathered facility shall not be converted to a non-residential land use or reduced in area or number of units. An applicant asserting that the application of this subsection (F) is preempted by state or federal law shall submit a written request for waiver or adjustment at the time of application submittal. Upon finding that the applicant’s assertion has merit, the decision-making authority may grant a waiver or adjustment of this subsection or any other provision of Titles 18 and 21 necessary to address the conflict with state or federal law. For projects that are subject to director-level approval, the director of planning in conjunction City of Palo Alto Planning & Community Environment Department Page 4 with the Council-appointed City Attorney will make a determination as to eligibility for the waiver, subject to appeal before the City Council. Projects that require Council approval, this determination will be made by the City Council. Policy Implications Although the current code may have some legitimate basis in policy (e.g. it favors replacement of non-conforming buildings with conforming development) it has had a number of negative impacts. Without the proposed amendment, the City can expect additional downtown property owners objecting to the standard and frustrated by an inability to remodel to fill tenant spaces based on market demand and subject to the City’s other regulatory requirements. Some property owners may be reluctant to redevelop property, including housing projects, based on this policy. There are approxmiately 250 Downtown properties and a number of them are non- complying with respect to maximum building height or maximum floor area. These buildings would be prevented from remodeling, improving, or replacing their facilities to change from existing land uses to other permitted or conditionally permitted land uses, including a change from non-retail to retail, which other City policies support. The proposed limitation on residential conversions may encourage some property owners to retain their residential uses, but this provision cannot precluded an owner from leaving the rental housing marking, which is why the waiver provision has been included. Environmental Review This proposed ordinance is within the scope of the Comprehensive Plan Environmental Impact Report (EIR) certified and adopted on November 13, 2017 by Council Resolution No. 9720. Alternatively, the Ordinance is exempt from environmental review under CEQA Guidelines Section 15061(b)(3). Public Notification, Outreach & Comments The Palo Alto Municipal Code requires notice of this public hearing be published in a local paper at least ten days in advance. Notice of a public hearing for this project was published in the Daily Post on January 18, 2019, which is 12 days in advance of the meeting. Alternative Actions In addition to the recommended action, the Planning and Transportation Commission may: 1. Continue the discussion with direction for staff to study the matter further, with specifics, and return with the additional information. Report Author & Contact Information PTC1 Liaison & Contact Information Amy French, Chief Planning Official Jonathan Lait, AICP, Assistant Director 1 Emails may be sent directly to the PTC using the following address: planning.commission@cityofpaloalto.org City of Palo Alto Planning & Community Environment Department Page 5 (650) 329-2336 (650) 329-2679 amy.french@cityofpaloalto.org jonathan.lait@cityofpaloalto.org Attachments: • Attachment A: Ordinance Amending Section 18.18.120 (DOCX) jb SL/Amending ORD 18.18 (DC) District 1 ** NOT YET ADOPTED ** DRAFT Ordinance No. ____ Ordinance of the Council of the City of Palo Alto Amending Section 18.18.120 (Grandfathered Uses and Facilities) of Chapter 18.18 (Downtown Commercial District) of Title 18 (Zoning) of the Palo Alto Municipal Code (PAMC) to Adjust Regulations Relating to Noncomplying Facilities. The Council of the City of Palo Alto ORDAINS as follows: SECTION 1. Findings and declarations. The City Council finds and declares as follows: A. Section 18.18.120 of the Palo Alto Municipal Code governs permissible noncomplying uses and facilities in the Downtown Commercial zone district. B. In 2016, the provisions of Section 18.18.120 governing permitted uses in noncomplying facilities seeking to remodel, improve, or replace site improvements were updated to: 1) allow minor modifications to building envelope through Architectural Review; and 2) require that such facilities maintain continual use and occupancy for the same use. C. The requirement that noncomplying facilities maintain continual use and occupancy for the same use has resulted in potentially unintended consequences, including the inability for noncomplying facilities to change from eating and drinking services to retail uses. SECTION 2. Section 18.18.120 (Grandfathered Uses and Facilities) of Chapter 18.18 (Downtown Commercial (CD) District) of Title 18 (Zoning) is hereby amended to read as follows: 18.18.120 Grandfathered Uses and Facilities (a) Grandfathered Uses (1) The following uses and facilities may remain as grandfathered uses, and shall not require a conditional use permit or be subject to the provisions of Chapter 18.70: (A) Any use which was being conducted on August 28, 1986; or (B) A use not being conducted on August 28, 1986, if the use was temporarily discontinued due to a vacancy of 6 months or less before August 28, 1986; or (C) Any office use existing on April 16, 1990 on a property zoned CD and GF combining, which also existed as a lawful conforming use prior to August 28, 1986, notwithstanding any intervening conforming use. (2) The grandfathered uses in subsection (1) shall be permitted to remodel, improve, or replace site improvements on the same site, for continual use and occupancy by the same use, provided such remodeling, improvement, or replacement complies with all of the following: jb SL/Amending ORD 18.18 (DC) District 2 (A) shall not result in increased floor area; (B) shall not relocate below grade floor area to above grade portions of the building; (C) shall not result in an increase of the height, length, building envelope, building footprint or any other increase in the size of the improvement. For purposes of this section, “building envelope” shall mean the three dimensional shape and size occupied by an existing building. It is not the maximum, buildable potential of the site; (D) shall not increase the degree of noncompliance, except pursuant to the exceptions to floor area ratio regulations set forth in Section 18.18.070; or (E) in the case of medical, professional, general business or administrative office uses of a size exceeding 5,000 square feet in the CD-S or CD-N district that are deemed grandfathered pursuant to subsection (1), such remodeling, improvement, or replacement shall not result in increased floor area devoted to such office uses. (F) The Director may approve minor changes to the building’s footprint, height, length, and the building envelope through Architectural Review of minor aesthetic architectural improvements and to improve pedestrian-orientation provided there is no increase to the degree of any non-complying feature. (3) If a grandfathered use deemed existing pursuant to subsection (1) ceases and thereafter remains discontinued for 12 consecutive months, it shall be considered abandoned and may be replaced only by a conforming use. (4) A use deemed grandfathered pursuant to subsection (1) which is changed to or replaced by a conforming use shall not be reestablished, and any portion of a site or any portion of a building, the use of which changes from a grandfathered use to a conforming use, shall not thereafter be used except to accommodate a conforming use. (b) Grandfathered Facilities (1) Any noncomplying facility existing on August 28, 1986 and which, when built, was a complying facility, may remain as a grandfathered facility and shall not be subject to the provisions of Chapter 18.70. (2) The grandfathered facilities in subsection (1) shall be permitted to remodel, improve, or replace site improvements on the same site for continual use and occupancy, by the same use, provided such remodeling, improvement, or replacement complies with all of the following: (A) shall not result in increased floor area; (B) shall not relocate below grade floor area to above grade portions of the building; (C) shall not result in an increase of the height, length, building envelope, building footprint, or any other increase in the size of the improvement; (D) shall not increase the degree of noncompliance, except pursuant to the exceptions to floor area ratio regulations set forth in Section 18.18.070; (E) The Director may approve minor changes to the building’s footprint, height, length, and the building envelope through Architectural Review of minor aesthetic architectural improvements and to improve pedestrian-orientation provided there is no increase to the degree of any non-complying feature. jb SL/Amending ORD 18.18 (DC) District 3 (F) The residential portion of any grandfathered facility shall not be converted to a non-residential land use or reduced in area or number of units. An applicant asserting that the application of this subsection (F) is preempted by state or federal law shall submit a written request for waiver or adjustment at the time of application submittal. Upon finding that the applicant’s assertion has merit, the decision-making authority may grant a waiver or adjustment of this subsection or any other provision of Titles 18 and 21 necessary to address the conflict with state or federal law. SECTION 3. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a 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 passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional. SECTION 4. The Council finds that the Ordinance is within the scope of and in furtherance of the Comprehensive Plan 2030 which was evaluated in that certain Final Environmental Impact Report (“Final EIR”) certified and for which findings were adopted by Council Resolution Nos. 9720 and 9721 on November 13, 2017, all in accordance with the California Environmental Quality Act (“CEQA”). Pursuant to Section 15168 of the State CEQA Guidelines, the City has determined that no new effects would occur from and no new mitigation measures would be required for the adoption of this Ordinance. The Council further and alternatively finds, that even if this Ordinance were not within the scope of the Comprehensive Plan 2030, it would be exempt from environmental review under Section 15061(b)(3) of the State CEQA Guidelines. SECTION 5. This Ordinance shall be effective on the thirty-first date after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: NOT PARTICIPATING: ATTEST: jb SL/Amending ORD 18.18 (DC) District 4 ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Deputy City Attorney City Manager ____________________________ Director of Planning & Community Environment Planning & Transportation Commission Staff Report (ID # 9942) Report Type: Approval of Minutes Meeting Date: 1/30/2019 City of Palo Alto Planning & Community Environment 250 Hamilton Avenue Palo Alto, CA 94301 (650) 329-2442 Summary Title: December 12, 2018 Draft PTC Meeting Minutes Title: December 12, 2018 Draft Planning & Transportation Commission Meeting Minutes From: Jonathan Lait Recommendation Staff recommends that the Planning and Transportation Commission (PTC) adopt the attached meeting minutes. Background Draft minutes from the December 12, 2018 Planning and Transportation Commission (PTC) meetings were made available to the Commissioners prior to the meeting date. The draft PTC minutes can be viewed on line on the City’s website at http://www.cityofpaloalto.org/gov/boards/ptc/default.asp. Hard copies of the minutes from each of the above referenced meetings will be made available at the PTC meeting being held on December 12, 2018 at Council Chambers at 6pm.