The purpose for the study is to identify whether or not a modest increase in lot coverage would reduce the number of second story developments by encouraging single story developments. The study is not intended to suggest modifications to any other portion of the residential zoning regulations or to the Single-Family Home Design Techniques.

Staff is recommending a modification to the existing Municipal Codes §19.32.020 and §19.26.200 (f)(3) to allow up to 45% lot coverage on the R-0, R-1, and R-2 Zoning Districts, where 40% is currently allowed.

On July 1, 2002, the City Council adopted new regulations regarding Floor Area Ratios (FAR) for single-family homes. These changes were adopted after a yearlong study on issues associated with large homes. The study addressed concerns regarding the size of the homes, their effect on adjoining neighbor’s privacy, the desire for community participation in the decision-making process and the architectural compatibility of these homes with the surrounding neighborhood. The City Council directed staff to return with information summarizing the number of Design Review applications over the previous year. In March of 2003, Council further directed an analysis of an increased lot coverage. The Council asked staff study the City’s current regulations and to provide them with possible alternatives to the current 40% maximum lot coverage regulations.

The following policies are from the City’s General Plan and Title 19. A full discussion and analysis of these policies are provided in the Discussion section of the report.

Lot Coverage: Municipal Codes §19.32.020 and §19.26.200 (f)(3) require that lot coverage for all buildings in the R-0, R-1, and R-2 Zones not exceed 40% of the total parcel area. This regulation also applies to enclosed and unenclosed patio area as well as all accessory utility buildings. The intent of the 40% coverage is to limit building density and intensification of square footage, which could have an adverse impact on a neighborhood. The 40% lot coverage is also intended to limit the negative environmental impacts resulting from excessive land coverage. The City’s current lot coverage policy was adopted in 1963.

Floor Area Ratio Threshold: This regulation requires Planning Commission review for all new homes or proposed additions that exceed the 45% FAR threshold for the residential zoning district. The intent of the threshold was to allow wider neighborhood notification and a public decision-making process for homes that could have a significant impact on the surrounding neighborhood. The 45% threshold was adopted in July 2002.

Legislative and Management Element: This following sections from the General Plan call for the City ordinances to be updated in response to the needs of the community.

ACTION 7.3B.3b: Consider changes to ordinances to reflect changes in community standards and state and federal laws.

Staff reviewed the following information in addressing the Council’s request:

• Design Review applications submitted for new residences or additions to existing residences between July 1, 2001 and July 1, 2002,
  
• Design Review applications submitted for new residences or additions to existing residences between July 1, 2002 and July 1, 2003,
  
• Variance applications requesting to exceed the 40% lot coverage maximum from January 1, 2000 to the July 1, 2003,
  
• Applications that exceed the 45% FAR over the last year,
  
• Building permits for single family homes submitted over the last two years,
  
• Lot coverage and FAR policies of surrounding cities,
  
• Possible alternatives to the City’s existing lot coverage and FAR policies.

Four main topics are covered in this section:

1. Lot coverage and FAR policies of surrounding cities,
   
2. The number and type of applications submitted for Design Review in Sunnyvale over the last two years,
   
3. Possible alternatives to the City’s existing lot coverage and FAR policies,
   
4. An analysis of the various alternatives to the City’s current policy.

A direct comparison of surrounding cities is not entirely possible since most cities have different standards for measuring the allowable square footage. For example, many cities have a sliding scale to determine coverage that is dependent on the size of the parcel. Generally, the larger the parcel, the smaller percentage coverage allowed. Typically cities average between 40 – 45% lot coverage, with approximately 35 – 40% allowed for FARs. Sunnyvale’s existing policy of 40% lot coverage and 45% FAR is in keeping with surrounding jurisdictions. An increase to 45% lot coverage would also be in keeping with surrounding cities.

The West Valley Cities, including Los Gatos, Saratoga, Los Altos, generally have more restrictive FAR’s due to larger lots sizes and sloping lots. The cities surrounding Sunnyvale, which have a more level topography, typically have FAR’s between 40 - 45%.

Since January 2000, there have been eight variance requests for lot coverage. Five applications for were denied and three were approved. Most recently, on March 18, 2003, the City Council denied a variance request (VAR 2002-0935, 973 The Dalles) by finding that a substandard lot is not exceptional when it is of a like nature to those in the surrounding neighborhood.

The data above shows that the average proposed FAR has increased by 3% since the adoption of the 45% threshold policy. The mode has also increased by 5% in the last year from 40% up to 45%. Although there is no definitive conclusion for this increase, it may be the result of several factors including: setting a numerical threshold (45%) that gives applicants a target square footage, allowing applicants to build to the maximum FAR without incurring additional expense, the rising value of land in Sunnyvale, or the current economy.

Another effect of the current economy is the rising number of Design Reviews applications. The number of applications over the past year increased by 41 permits compared to the previous year. This is an increase in Design Review applications of 37%. The following table summarizes the total number of Design Review applications submitted over the past three years.

The following represents a partial list of possible alternatives to the city’s existing policies:

INCREASE LOT COVERAGE TO 45%: Both the FAR and allowable lot coverage would be the same percent of the total lot square footage. Applications proposing lot coverages greater than 45% would be treated as variances. Applications proposing greater that 45% FAR threshold would still require a public hearing.

INCREASE LOT COVERAGE TO 45% FOR 1^st STORY ONLY: Any residential application for a single story home would be allowed to cover 45% of the total lot square footage. Two story homes would only be allowed to cover 40%. If applicants wish to exceed the 45% FAR threshold for a second story addition, they would be required to remove 5% on the existing first story of the residence to become compliant. This limitation is similar to Palo Alto’s, where single story homes can have a 45% maximum lot coverage, but two story homes are only allowed a maximum of 35% lot coverage.

INCREASE LOT COVERAGE TO 45% FOR PORTION OF 1^st ONLY: Any application for a second story addition exceeding the 45% FAR threshold would be required to leave the equivalent of 5% of the existing first story as single story. Under this scenario, lot coverage is increased to 45% for the first story only, without requiring that the applicant remove a portion of the existing structure.

CURRENT POLICY REMAINS THE SAME: The existing policy of 40% lot coverage and 45% threshold could remain the same. All applications proposing lot coverages greater that 40% would still be treated as variances. All applications proposing an FAR greater that 45% would still be required to go to a public hearing for approval.

In all of these cases, the additional 5% could mean the addition of an extra bedroom or two, family room, or master bedroom. The extra lot coverage could also aid property owners in meeting the City’s new parking requirements for nonconforming residences. These regulations state that residential additions exceeding 1800 square feet, or exceeding 3 bedrooms, must have two covered parking spaces. Under certain scenarios, a property owner could add both square footage and a parking space without being forced to build a second story or converting a portion of the home for parking purposes.

The following table shows the percentage of buildable area exclusive of the setback requirements in the R-0, R-1, and R-2 zones.

The above table shows that most parcels in the City would benefit from an increase in 5% lot coverage.

CONSTRAINTS: A new policy, which would increase the lot coverage to 45%, could contribute to neighborhood incompatibility, as up to now, all properties are less that 40% coverage. The FAR and lot coverage regulations give applicants a certain expectation that a proposal may be designed to the maximum limit allowed without triggering special consideration. As part of the Design Review process, staff applies the Single-Family Home Design Techniques that require compatibility with the surrounding neighborhood with respect to mass and scale. Applicants may becomes frustrated if they are informed that their proposed design, which meets the FAR and lot coverage requirements, cannot be approved due to incompatibility with surrounding home sizes. Although single story designs are rarely determined to be incompatible, it could increase the likelihood of second story additions being identified as incompatible.

The design review application data gathered shows that the average FAR has increased by 3% since the adoption of the 45% threshold policy, and the mode has also increased by 5% in the last year from 40% up to 45%. Staff believes that this increase is partially due to the setting of a numerical threshold for the FAR that increased the public’s expectation that they should design homes to the maximum allowed square footage. If the maximum allowed lot coverage was allowed to increase an additional 5%, staff expects that lot coverage will also increase proportionately.

Increasing the allowed lot coverage could contribute to the total impervious surface area on each parcel. New stormwater treatment requirements, now being implemented throughout the state, are intended to minimize the amount of impervious surfaces and to allow the natural discharge of stormwater back into the ground. A 5% increase in the allowed lot coverage would contribute further to the current amount of urban runoff, although only slightly, and may be considered inconsistent with the new state stormwater management practices. However, current codes do not restrict paving in the side and rear yards; it is legal to pave over the entire back and side yard areas.

A Negative Declaration has been prepared in compliance with the California Environmental Quality Act provisions and City Guidelines. An initial study has determined that the proposed project would not create any significant environmental impacts. Two less than significant impacts were identified in the categories of Noise and Hydrology/Water Quality. (see Attachment 3, Initial Study)

The fiscal impacts from this action depend on the type of FAR or lot coverage regulations adopted. Generally, the more restrictive the requirement, the more likely there are to be design reviews that require redesigns or a Planning Commission hearing. These impacts will become costs in terms of staff-level review time and applicant permit processing time.

The less restrictive the requirements, the less likely it will be that an application will require a public hearing or redesign. In the last year since the adoption of the new 45% FAR threshold, 16 applications have been submitted for floor area ratios over the 45% FAR. An increase of 5% in the FAR threshold would have eliminated the need for 5 of the 16 to be heard by the Planning Commission. Based on the survey of applications for lot coverage variances since January 2000, 7 out of the 8 applications were proposing lot coverages less than 45%. An increase of lot coverage of 5% would also have eliminated the need for a variance in 7 of the 8 applications.

Staff notified the community of this study issue in additional ways:

An informational flyer regarding this study was sent to individuals who had previously requested notification of public hearings for the Single Family Home Design Techniques.

An informational flyer regarding this study was sent to individuals who had requested to be informed of this study issue.

1. Introduce ordinance to the Municipal Code concerning an increase in the allowable lot coverage to allow up to 45% lot coverage where 40% is currently allowed.
   
2. Introduce ordinance to the Municipal Code with modifications.
   
3. Direct staff to where additional research is required for future action.
   
4. Do not modify the Municipal Code.

Recommend Alternative 1 to the City Council.

Prepared by:
Steve Lynch
Project Planner

Reviewed by:
Fred Bell
Principal Planner

Reviewed by:
Trudi Ryan
Planning Officer

Reviewed by:
Robert Paternoster
Director of Community Development

Approved by:
Robert S. LaSala
City Manager

Attachments:

1. Initial Study/Negative Declaration
2. Draft Ordinance