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10.
City Council Work Session
Meeting Date:
05/11/2021
From:
Dan Symer, Zoning Code Manager

TITLE

Proposed amendment to the Zoning Code to modify the existing Accessory Dwelling Unit (ADU) and accessory structure requirements (Case No. PZ-21-00066)

STAFF RECOMMENDED ACTION:

Hold a work session to allow the City Council and the public to ask questions, seek clarification, have discussions, offer comments, and provide direction on the proposed amendment.

EXECUTIVE SUMMARY:

The proposed Zoning Code Text Amendment (Attachment 1) is a request by the City to amend the Zoning Code to incorporate provisions to allow a Detached Accessory Dwelling Unit to encroach into a property's required interior and rear setback, provided that the maximum height of the structure does not exceed 16 feet. In addition, the proposed amendment includes modifications to allow the first floor of a garage that exists within the required setbacks to be converted to a Detached Accessory Dwelling Unit, and the height of an Attached and Interior Accessory Dwelling Unit to be the same as the maximum building height permitted by the property’s zone. Also, the proposed amendment includes modifications related to the allowed encroachments of an Accessory Dwelling Unit's features (Bay Windows, Open Eaves, Cornices, Fireplaces and Chimneys, and Window Sills) into the setbacks, and the provisions pertaining to the allowed encroachments into setbacks have been consolidated into one table.

In addition to the above Zoning Code Text Amendment, in accordance with the March 16, 2021, City Council request, Staff is seeking City Council direction to remove barriers to homeowners building Accessory Dwelling Units on their property – particularly whether to remove the requirements related to the property owner occupying either the single-family dwelling unit or the Accessory Dwelling Unit as their principal residence and the associated restrictive covenant provisions.  The purpose of eliminating these requirements is to allow a property owner to construct an Accessory Dwelling Unit on the same lot as a single-family dwelling unit and rent both units.

INFORMATION:

I.  City Council Questions:
For your reference, below is a general overview of the questions on which staff is seeking the City Council’s comments and direction.
  • Does the City Council have any recommended modifications or considerations on the proposed Zoning Code Text Amendment?
  • Does the City Council desire to incorporate modifications to the proposed amendment to remove the existing provisions requiring a property owner to occupy the single-family dwelling unit and the restrictive covenant pertaining to owner occupancy and leasing provisions?
II.  Overview of Proposed Amendment:
The proposed amendment (Attachment 1) includes multiple changes to the Zoning Code.  New provisions are being added, and several existing regulations are being modified.  The most significant of the modifications include:
  • Allowing Detached Accessory Dwelling Units to be located in the required setbacks of a property zone;
  • Allowing detached garages constructed prior to February 16, 2016 that are within the required Detached Accessory Dwelling Unit setbacks to be converted to an Accessory Dwelling Unit;
  • Establishing a maximum building height (16 feet) of a Detached Accessory Dwelling Unit that encroaches into the required setbacks of a property’s zone; and
  • Modifying the allowed building height of an Attached and Interior Accessory Dwelling Unit to be the same as the maximum building height permitted by the property’s zone.
Summary of the Staff Revisions to the Zoning Code:
The proposed amendment includes:
1.  Accessory Structures (Section 10-40.60.020):
  • Table 10-40.60.020.B.7.d.: Allowed Accessory Structure Encroachments into Setbacks has been deleted, and the related provisions have been incorporated into Table 10-50.40.020.A.: Allowed Encroachments into Setbacks and Heights.
  • The reference to Table 10-40.60.020.B.7.d. for encroachments into the required setbacks has been modified to refer to Table 10-50.40.020.A.
2.  Accessory Dwelling Units (ADUs) (Section 10-40.60.030):
  • Table 10-40.60.030.C.: Accessory Dwelling Unit Design, Development and Exceptions Standards has been modified as follows:
    • Minimum setbacks have been established that would allow a Detached Accessory Dwelling Unit to encroach into the required setbacks of a property’s zone;
    • The required setbacks of a property’s zone have been maintained and clarified for Attached and Interior  Accessory Dwelling Unit. The allowed building height (currently 24 feet) of an Attached and Interior Accessory Dwelling Unit has been modified to be the same as the maximum building height permitted by the property’s zone;
    • Encroachments (awnings, bay windows, canopies, fireplaces and chimneys, open eaves, window sills, etc.) allowed in combination with Attached, Detached, and Interior Accessory Dwelling Units have been modified; and
    • The existing provisions pertaining to a detached garage constructed prior to February 16, 2016 have been modified to allow the garage to be converted to a  Detached  Accessory Dwelling Unit.
3.  Encroachments into Minimum Required Setbacks (Section 10-50.40.020):
  • Table 10-50.40.020.A.: Allowed Encroachments into Setbacks and Heights has been modified to incorporate the provisions of Table 10-40.60.020.B.7.d. for accessory structures. In addition, a cross-reference to the walls and fence encroachments has been included in Table 10-50.40.020.A.
III.  Findings:
At the June 15, 2021 City Council meeting, the City Council will be requested to approve the proposed Zoning Code Text Amendment and that the required findings specified in the Zoning Code have been met.  For your reference and discussion purposes, the required findings are specified below.
  • The proposed amendment is consistent with and conforms to the objectives and policies of the General Plan and any applicable specific plan;
  • The proposed amendment will not be detrimental to the public interest, health, safety, convenience, or welfare of the City; and
  • The proposed amendment is internally consistent with other applicable provisions of this Zoning Code.
IV.  Barriers to Homeowners Building Accessory Dwelling Units
At the March 16, 2021 City Council meeting (Agenda Item 13.B.), in-lieu of a separate Future Agenda Item Request (F.A.I.R.), the City Council requested to have a discussion pertaining to removing barriers that prohibit homeowners from building Accessory Dwelling Units on their properties at the time the above referenced Zoning Code Text Amendment would be discussed.  Based on discussions with a member of City Council that brought forth the Future Agenda Item Request (F.A.I.R.), the particular regulations that were identified are related to the requirements that the property owner shall occupy either the single-family dwelling unit or the Accessory Dwelling Unit as their principal residence and the associated restrictive covenant provisions.  These provisions are:
  • Table 10-40.60.030.C. Accessory Dwelling Unit Design, Development and Exceptions Standards.
(12) Required Occupancy.
(a) The property owner, which includes title holders and contract purchasers, shall occupy either the primary residence or the ADU as their principal residence. The residence or ADU that is not occupied by the property owner that is rented or leased shall be for a period of no less than 30 days.
  • 10-40.60.030 Accessory Dwelling Units (ADUs)
E. Restrictive Covenant.
1.  The property owner shall sign before a notary public a restrictive covenant that runs with the land on a form prepared by the City affirming that the property owner shall:
a.  Occupy either the primary residence or the ADU; or
b. If the property owner rents or leases a property with both a primary residence and an ADU to a third party, then neither the primary residence nor the ADU shall be sub-leased.
2.  The restrictive covenant shall be submitted to the City prior to the issuance of a building permit for the ADU. The City shall record the restrictive covenant after the building permit has been issued.
 
The purpose of eliminating these requirements is to allow a property owner to construct an Accessory Dwelling Unit on the same lot as a single-family dwelling unit and rent both units.  There are potential benefits and drawbacks to eliminating the property owner occupancy and restrictive covenant requirements.  The potential benefits include:
  • Allowing a property owner to construct an Accessory Dwelling Units that may also be rented in addition to a single-family dwelling unit rental on the same lot; and
  • Increasing the number of rental dwelling units that may contribute to the availability of affordable housing options.
The potential drawbacks include:
  • Creating an increased number of Accessory Dwelling Units that may be utilized as vacation/short term rentals; and
  • Having two separate rental units connected to one utility meter for each source (water, electric, gas, etc.).
Rather than allow a property owner to rent the both the primary and accessory units as right, impacts to the neighborhood could be mitigated  and housing availability to residents increased by instead incentivizing the rental of both the primary and accessory units upon owner agreement not to rent either unit for less than 30 days. This agreement would be recorded as a restrictive covenant on the property.  No owner would be required to comply with this rental restriction in order to construct an ADU as the existing right to construct an ADU with owner-occupancy requirement would remain in place.

It also should be noted that the single-family dwelling unit and the Accessory Dwelling Unit must be connected to the same water meter. This requirement is intended to minimize the cost of constructing the Accessory Dwelling Unit since separate meter installation costs for each dwelling unit would not need to be paid. Therefore, the potential savings could allow the property owner to rent the Accessory Dwelling Unit at a lower cost.  For example, Water Services staff estimates the cost of installing a separate water meter for an accessory dwelling unit to be approximately $13,000.

Having two separate rental units connected to one utility meter source may be a drawback because the property owner may require the renter of one of the dwelling units to pay the monthly utility cost and collect utility fees from the other dwelling unit renter.  If the renter that contracts with the utility for the service fails to pay the utility provider, utility services may be disconnected. In that case, the other dwelling unit's renter that does not hold the utility contract will be left without utility service.  

V.  Community Involvement:
At the time that this report was written, staff has received one public comment (Attachment 2) on the proposed amendment and the discussion topic indicated in Section IV.

VI.  Conclusion:
As indicated above, the purpose of the work session is for staff to present an overview of the Zoning Code's proposed amendment and allow interested individuals, residents, and business owners to provide comments.  The work session also allows the Commission to ask questions, seek clarification, have discussions, and offer comments on the proposed amendment. No formal recommendation or action by the Commission to the City Council is to occur at the work session.  Additional opportunities for discussion, public comment, and action by the Commission will occur at a future public hearing.

Attachments