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HomeMy WebLinkAbout103-Attachment 2 - Background Report.pdf BACKGROUND REPORT RE GARROD TRUST REQUEST FOR ANNEXATION AND CONFORMING STATUS DETERMINATION FOR EXISTING USES AND STRUCTURES Prepared by Assistant City Attorney Jonathan Wittwer November 10, 2010 TABLE OF CONTENTS Page# Introduction 1 Regulatory History Summary 1 Project Description 1 Background 1 Economic and Other Benefits and Risks of Annexation and City Ability to Continue to Provide Undiluted Public Services 3 • Current Uses and Structures in County - Discussion of Legal Conforming Status 3 Legal establishment under County Use Permits 3 Conformity to City General Plan 5 General Plan Goals and Policies 5 Land Use Element Background Report pp 13-14 and Table LU-1 (Land Use Categories) 5 Williamson Act Contracts and Agricultural Protection – Goal LU 7 6 Open Space Element Background Report, Goals and Policies 6 Prior City Determination Harmonizing Land Use Density, Open Space and Housing Elements of City General Plan (2002 Planning Commission Resolution) 8 Conformity to City Zoning Regulations 9 City Zoning Regulation Authorizing All Uses in County Williamson Act Contract 12 Uses Also Generally Authorized Under R-OS Zoning 12 Basis for Deeming Current Uses and Structures in County to be Legal and Conforming Upon Annexation to City 12 Current Uses and Structures in City - Discussion of Legal Conforming Status 13 Proposed Pre-Annexation Agreement Governing Property to be Annexed to City 15 Proposed Development Agreement Governing Property Already Inside City 15 Zoning Amendment to Add Agricultural Preserve (AP) Overlay Zoning to Property Annexed to City 15 Combined Post-Annexation Williamson Act Contract – Rescission and Simultaneous Reentry 16 Combined Post-Annexation Use Permit 16 Environmental Review 16 Conclusion 16 INTRODUCTION Garrod Trust has requested the City to initiate annexation proceedings for 68 acres it owns in the County of Santa Clara contiguous to 51 acres it owns in the City. As part of these proceedings, Garrod Trust has requested the City Council to exercise its authority under City Code Section 15-65.035 to determine whether the current uses and structures on the Property to be Annexed should be granted “conforming” status. Since Section 15-65.035 was enacted by the City Council within the past 14 months, this is the first time the authority to determine “conforming” status will be exercised. Garrod Trust is already operating a Winery/Equestrian Facility on the 68-acre Property to be Annexed and a variety of uses and structures will need to be evaluated for “conforming” status. Furthermore, a number of land use regulations come into play. It is for these reasons that this Background Report is being provided for context as to the factors and analysis relevant to making the requested conformity determination. REGULATORY HISTORY SUMMARY 04/23/1964 County Use Permit 10P 64.1 (Reso. 7998) issued for Equestrian Facility 11/02/1970 Williamson Act Contract executed for property in the City 01/05/1983 City Action Creating Adding AP/OS Overlay and Adding it to Garrod Trust Property Already inside City 04/23/1994 County Use Permit Modified to Add Winery Facility issued for 12/15/1993 City Prezoning of Property under Consideration for Annexation 12/24/2001 Williamson Act Contract executed for property in County 03/13/2002 City Planning Commission Determines Family and Employee Housing Proposed on Property Located in County is Consistent with City General Plan and Hillside Specific Plan PROJECT DESCRIPTION The Project Description is fully set forth in the Staff Report to which the Background Report is attached. BACKGROUND In general, the purpose of an approval of the Resolution Initiating Annexation is to initiate a process under which the Garrod Trust would annex to the City the 68-acre portion of the Garrod Trust Property (including the Winery/Equestrian Facility) which is currently in the unincorporated area of the County of Santa Clara and continue to operate in conjunction with that part of its Facility on the 51-acre portion of the Garrod Trust Property which is currently located in the City of Saratoga. Upon Final Annexation, the City may determine which existing uses and structures should be deemed to be have legal conforming status, legal nonconforming status or noncompliant status. The Winery/Equestrian Facility includes the following currently existing or authorized uses and structures: 1 (1) uses for stables and riding academy/day camp, riding lessons, boarding horses, breeding horses, training horses, shows and exhibitions, selling horses and equipment and supplies for horses and riders, and related food services, vineyards, wine production, retail wine sales, wine tasting, indoor and outdoor events, parking, family and employee housing (8 single family dwellings, 2 cottages/second units and 4 trailers/modular units for employees), outdoor storage, and other supporting uses; and (2) structures (all pre-dating or approved by the 1964 Use Permit for the Equestrian Facility unless otherwise specified) which include: • Eight single family residences (William Cooper 1998 remodel and Christina Garrod 2004) • Two small cottages/second units • Four trailers/cottages/modular units (housing for employees) (Dick Garrod 1975) • One administrative office for the commercial stables • One administrative office for the winery • One barrel room (1997) • One covered riding arena • Three large barns • Three special purpose barns (hay, shoeing [1965] and day use) • Miscellaneous covered horse paddocks (1965-1975) • Riding academy/day camp buildings (2) (1965)/summer kitchen • Two water tanks • Public restroom facilities for men and women (two buildings, one including old wood shop) • One Metal Shop (1980) • Pastures and vineyards of undetermined acreage. • One wine tasting/retailing/production facility (1994) (including a covered event facility, and other support facilities). The City Council has the full discretion and authority under City Code Section 15-65.035 and other applicable laws to determine whether the current uses and structures on the Property to be Annexed should be annexed into the City with “legal nonconforming” status or, in the alternative with “conforming” status. The history of the Garrod Trust Property is as follows. In 1894, a 112-acre property was purchased by Ralph and Mabel Creffield and Sophia and David Garrod, who emigrated from England in 1893. Ralph and Sophia were brother and sister. Their partnership split and the 65 acres retained by David and Sophia Garrod was named Garrod Heights and is the core of the family’s operations and heritage. The grandparents of Jan Garrod (the Trustee signing Garrod Trust’s Application for Annexation) were R.V. Garrod and Emma Garrod, who, with their children Louise, Vince and Dick added to the property over the years, ultimately creating a holding of 240 acres. For many years the family grew apricots and prunes, but as those crops declined economically, Garrod Farms Stables was started in 1964 under a Use Permit issued by the County of Santa Clara. In 1980, the family sold and gifted the northern 120 acres to the 2 Mid-Peninsula Open Space District. The first vineyards were planted in 1972, production of family wine began in 1976, and a commercial winery was established in 1994 under an amendment to the 1964 Use Permit from the County. Since then the family has operated Garrod Farms Stables and Cooper-Garrod Winery as complementary operations, sharing facilities and staff, and hosting numerous events in support of the community. Among the goals of the Annexation and other proposed actions contemplated by the Garrod Trust are the following: • Allow a mix of agriculture and residential uses for a single property ownership, as well as supporting and complementary uses; • Establish jurisdiction in one public agency with land use authority (City of Saratoga) so as to facilitate long-term planning, and any potential future implementation of modifications to Winery/Equestrian Facility; • Enable Garrod Trust’s combined agriculture and recreational operations to continue and thrive; • Preserve the family’s commitment to agriculture and open space in the Saratoga foothills; • Encourage sustainable management of lands and resources; and • Permit uses which support agriculture, recreation, and related supporting residential purposes. ECONOMIC AND OTHER BENEFITS AND RISKS OF ANNEXATION AND CITY ABILITY TO CONTINUE TO PROVIDE UNDILUTED PUBLIC SERVICES The general discussion of Annexation Risks and Benefits is contained in the Staff Report. A more extensive list of possible benefits has been provided by the Garrod Trust and considers benefits as they relate to: Financial, Land Use/Government, Economic Development, and Community Programs/Identity/Character. CURRENT USES AND STRUCTURES IN COUNTY - DISCUSSION OF LEGAL CONFORMING STATUS The City Code authorizes the City to establish the status of uses and structures existing on property being annexed into the City (Section 15-65.035). Garrod Trust has requested that the City establish conforming status for all of its existing uses and structures. There are many factors potentially relevant to establishing such conforming status. The following section of the Background Report analyzes these factors. Legal establishment under County Use Permits City Code Section 15-65.035 requires that in order to have legal conforming or legal nonconforming status, the annexed use or structure must have been “lawfully existing on the effective date of its annexation.” The Garrod Trust Property was issued a Use Permit by the County of Santa Clara on April 23, 1964 for stables and riding academy, riding lessons, boarding horses, breeding horses, training horses, shows and exhibitions, selling horses and equipment for horses and riders and related food services. Note that among the current uses not listed in the 3 1964 Use Permit are family and employee housing and sale of horse supplies (e.g., hay). There were a substantial number of buildings located on the Garrod Trust Property prior to the issuance of the 1964 Use Permit as to which the County appears to have found no violation (otherwise such violation would normally have to have been cured prior to issuance of the 1964 Use Permit). In 1994, as part of a Staff Report recommending approval of a modification of the 1964 Use Permit to add a winery use, the original 1964 Use Permit was described as authorizing a “commercial horse boarding stable” for “commercial horse boarding and riding” including the following: • Two residences • One administrative office • One covered riding arena • Three barns • One Horse paddock • Two water tanks • One public restroom facility • Pastures and vineyards of undetermined acreage. That 1994 Staff Report acknowledged that the 1964 Use Permit does not have an expiration date, nor does it limit the number of horses that may be boarded at the facility (and that the facility then accommodated 140 horses). Furthermore, it is clear that such Use Permit does not limit the number of students at the riding academy, the number or size of shows or exhibitions, or the volume of sales of hay, equipment or horses. Additionally the 1964 Use Permit required 50 parking spaces to be installed as a condition of approval; hence at least that amount of parking should be deemed approved by the County. On April 7, 1994 the County Planning Commission authorized, and on April 23, 1994, the County issued, a Use Permit Modification for the 1964 Use Permit allowing the additional use of the Garrod Trust Property as a “Commercial Winery per Section 14-4.3 of the Zoning Ordinance,” including wine production, retail wine sales, and wine tasting (and specifying 12 off-street parking spaces for the tasting use). Production of wine includes storage, bottling and distribution and related administrative offices and functions. The Staff Report for the April 23, 1994 Use Permit Modification specified that the following structure was also being authorized: One wine tasting/retailing/production facility (including a covered event facility, winery/barrel storage building, and other support facilities). On April 15, 1998, the County Environmental Resources Agency Planning Office approved replacement of an existing building with a new structure designed to house wine barrels. 4 Conformity to City General Plan General Plan Goals and Policies The evaluation of the General Plan conformity of the uses and structures on the portion of the Garrod Trust Property to be Annexed should be undertaken in the following legal context. The General Plan Guidelines prepared by the Governor’s Office of Planning and Research provide that an action, program or project is consistent with the General Plan if, considering all its aspects, it will further the objectives and policies of the General Plan and not obstruct their attainment. (See Guidelines at p.128 (1998).) The courts have indicated that although a precise match between the action in question and General Plan policies is not required, the City must rely on reasonable judgment in concluding that the action in question is consistent with the plan as a whole. Thus, in upholding a consistency determination notwithstanding an apparent inconsistency between a project and three specific General Plan policies, in Sequoyah Hills Homeowners Association v. City of Oakland, 23 Cal. App. 4th 704, 719-720 (1993), the Court of Appeal explained that: No project could completely satisfy every policy stated in the General Plan, and that state law does not impose such a requirement. A General Plan must try to accommodate a wide range of competing interests - - including those of developers, neighboring homeowners, prospective homebuyers, environmentalists, current and prospective business owners, job seekers, taxpayers, and providers and recipients of all types of city- provided services -- and to present a clear and comprehensive set of principles to guide development decisions. Once a General Plan is in place, it is the province of elected officials to examine the specifics of a proposed project to determine whether it would be in harmony with the policies stated in the plan. It is emphatically not the role of the courts to micro manage these decisions. Our function is simply to decide whether the city officials considered the applicable policies and the extent to which the proposed project conforms with those policies, whether the city officials made appropriate findings on this issue and whether those findings are supported by substantial evidence. The adopted City General Plan contains the following Goals, Objectives and Policies applicable to land (such as the Garrod Trust Property to be Annexed) with a General Plan Land Use Designation of Hillside Open Space (OS-H) and which qualify as Open Space Resources under the General Plan. Land Use Element Background Report pp 13-14 and Table LU-1 (Land Use Categories). The OS-H Designation allows uses which support and enhance a rural character, promote the wise use of natural resources, and avoid natural hazards. Uses include (as relevant to the Garrod Trust Property) agricultural, low intensity recreational facilities, land in its natural state, wildlife refuges, and very low intensity residential development. Other support uses related to the foregoing listed uses may also be permitted. Allowed residential use is between 1 dwelling unit per 20 acres to 1 dwelling unit per 160 acres based on a slope density formula subject to stringent criteria. The maximum allowable site coverage is 25% or 15,000 square feet, whichever is less. 5 Williamson Act Contracts and Agricultural Protection – Goal LU 7. Goal LU 7 of the Land Use Element of the General Plan is to “Protect existing agricultural resources and encourage their expansion.” Among the Policies and Implementation Measures for this Goal which are relevant to the Garrod Trust Property to be Annexed are the following: Policy LU 7.1: Encourage renewal and discourage cancellation of Williamson Act contracts to preserve agricultural lands. Policy LU 7.3: Encourage agricultural use of suitable land with protection for nearby residences as appropriate. Implementation Measure LU 7.b: Continue to utilize the design review process to ensure appropriate buffers are provided when residential properties are adjacent to agriculturally designated lands. Open Space Element Background Report. The Open Space Element of the General Plan identifies as existing “Open Space Resources” vineyards, pastures, agricultural lands, areas of economic importance for the production of food or fiber, recreation areas, areas required for the preservation of plants and animal life, and areas which serve to link major recreation and open space areas, trails and scenic roadways. The Open Space Element specifically identifies as existing open space resources agricultural sites which are protected and restricted to agricultural or open space use only, as defined in the specific Williamson Act contracts applicable to the subject properties. These lands add not only to the perception of open space within the City, but also serve as a vital link between the modern City and its agricultural past. The 51 acres of Garrod Trust Property currently within the City limits constitutes nearly one-half of the 109 acres of land under Williamson Act inside the City. (pp. 1-2) The Open Space Element specifically recognizes the value of the “several hundred acres of agricultural land under the Williamson Act contracts within the City’s Sphere of Influence.” The approximately 68 acres of Garrod Trust Property which is the subject of this Pre-Annexation Agreement are a significant portion of that contracted land within the City’s Sphere of Influence. (p. 3) The Open Space Element specifically states that “[i]n defining agricultural uses, as they relate to Williamson Act lands, Government Code Section 51205 further states that where the term ‘agricultural use’ is used, it shall also be deemed to include recreational and open space use.” (p. 8) The Open Space Element states that development of a comprehensive trail system has been a priority of the community for many years. It describes Open Space Linkages through trail systems as very important in order to enhance scenic value, provide public access, maintain existing wildlife pathways and ensure the enjoyment of the open space system. Specifically identified linkages served by the Garrod Trust Property to be annexed include connection to of Saratoga to the Fremont Older Open Space and Upper 6 Stevens Creek Park and the planned connection of Saratoga trails to the County trail coming out of Stevens Creek County Park into the Mount Eden Valley. (pp. 7 and 18) The Open Space/Resource Plan in the Open Space Element establishes the City’s intentions to implement a course of action to ensure development of trails and protection and preservation of open space resources. These include, as applicable to the Garrod Trust Property to be Annexed, the following: preservation of agricultural resources, development of land use regulations “to encourage on-going agricultural operations” (Emphasis added) The Open Space Element establishes the following specific Goals, Policies, and Implementation Measures particularly relevant to the Garrod Trust Property to be annexed: • Policy OSC 3.3: Promote retention and dedication of land which provides room for a variety of passive and active recreational pursuits and offers important opportunities for the fulfillment of human and psychological needs, including … 3. Accessible areas particularly suited for … recreation purposes such as horseback riding …. and 4. Areas providing access to and links between major recreation, cultural, and open space reservations….” • Goal OSC 5: A city-wide system of hiking… and horseback riding trails shall be provided within the community which includes regional trail linkages…. • Policy OSC 6.3: Future land uses within the western hillside or any Sphere of Influence expansion area shall be reviewed by the City through the development review process to ensure consistency both with existing patterns of land use in the unincorporated hillside areas, and with the City’s desire to maintain the area as predominantly open space and rural. • Implementation Measure OSC 6.a: The City shall continue to use the design review and subdivision entitlement process to ensure that all development proposals are designed in a manner that meets goals and policies for preservation of hillsides. • Goal OSC 8: Encourage preservation of land uses for open space and agriculture. • Policy OSC 8.1: In evaluating future land uses, efforts shall be made to maintain agricultural lands as a component of open space and to preserve the rural and agricultural heritage of Saratoga. The City shall discourage the cancellation of Williamson Act contracts. • Implementation Measure OSC 8.a The City shall continue to apply the Agricultural Preserve Open Space Overlay District (“AP/OS”) on lands that are under Williamson Act Contracts and generally discourage the removal of this classification. The AP/OS Overlay will be added to the 68 acres of Property to be Annexed. • Policy Action 8.3: Residential density bonuses are to be provided for significant investment in agricultural improvements (e.g., vineyards, wood lots or orchards) or open space dedications. 7 • Implementation Measure OSC.8c. Allow additional dwellings on family farm operations when such additional dwellings will permit continuance of inter- generational agricultural uses consistent with Williamson Act provisions. This will not constitute a residential subdivision of the land under the Williamson Act. Prior City Determination Harmonizing Land Use Density, Open Space and Housing Elements of City General Plan. The City has previously made a determination related to the Property to be Annexed as to how it would harmonize its Land Use Density, Open Space and Housing Elements. On March 13, 2002, the City Planning Commission determined that the application of the Garrod Trust to the County for three proposed homes to be built on the Property to be Annexed was consistent with the City of Saratoga General Plan and the Hillside Specific Plan (subject to specified conditions), based on the following findings: WHEREAS, the Hillside Specific Plan applicable to the project site provides that development on unincorporated lands should proceed “with a preferred density of 20-160 acres/unit depending on slope;” WHEREAS, the Open Space Element of the City General Plan includes the following as incentives to be offered to promote continued agricultural uses in the City’s hillsides: Residential density bonuses for significant investment in agricultural improvement (e.g., vineyards, wood lots or orchards) or open space dedications. Allowing additional dwellings on family farm operations when such additional dwellings will permit continuance of inter-generational agricultural uses consistent with Williamson Act provisions. This will not constitute a residential subdivision of the land under the Williamson Act. WHEREAS, the Planning Commission has considered the staff reports, written materials prepared by the applicant, and all public testimony presented to the Commission and based thereon determines: 1. The property upon which the project is located is part of a 120-acre landholding of the Garrod Trust that is subject to Williamson Act contract between the Trust and Santa Clara County that is not the subject of cancellation proceedings and as to which no notice of non-renewal has been filed; and 2. The property has been used for agricultural purposes by the Garrod family since 1892 and is currently being used for operation of vineyards, an associated winery, an equestrian center and open space; and 3. Two of the homes to be constructed will be used by members of the Garrod family employed by the agricultural and open space uses operating on the Garrod Trust holdings and the third home will be used by family members or 8 by employees needed to permit continued agricultural and open space uses on the parcel; and 4. On-site housing is essential to maintaining the land’s agricultural viability in this instance due to the nature of agricultural operations and the disparity between prevailing agricultural wages and housing costs in the region; and 5. The project will be designed and landscaped in a manner that avoids interference with agricultural operations; and 6. The Garrod Trust has previously dedicated one half of its total landholdings (120 of 240 acres) to the MidPeninsula Open Space District; and 7. As part of the proposed project the Garrod Trust has proposed to dedicate a trail easement over a portion of its property in furtherance of the goals of the Saratoga Parks and Trails Master Plan; 8. [No longer applicable] WHEREAS, based on the foregoing and the evidence presented the Planning Commission has determined that the applicant has met the burden of proof required to support said application and that the proposed development is consistent with the General Plan and Hillside Specific Plan as a whole in that the proposed project will contribute to the agricultural use of the land by providing housing for the agricultural operations on site and will preserve open space by dedicating a trail for public equestrian and pedestrian use. (emphasis added) In light of the foregoing evidence and analysis, the City Council could exercise its reasonable discretion so as to conclude that the Winery/Equestrian Facility on the 68 acres of Property to be Annexed is consistent with the City General Plan as a whole. Conformity to City Zoning Regulations Once the General Plan provisions are properly interpreted, analyzed, and applied, Government Code Section 65860 requires, in turn, that the City Zoning Ordinance be interpreted, analyzed and applied to the Property to be Annexed in a manner consistent with the City General Plan. Hence, to the maximum extent reasonable, the City Zoning Regulations set forth in Chapter 15 are required to be applied in a manner consistent with the City General Plan as described above. City Zoning Regulation Authorizing All Uses in County Williamson Act Contract One of the most important provisions in the General Plan in relation to the Zoning Regulations is Implementation Measure OSC 8.a which requires the City to continue to apply the Agricultural Preserve Open Space (“AP/OS”) Overlay District (“AP/OS”) on lands that are under Williamson Act contracts. The AP/OS District provides at City Code Section 15-15.040 governing “Permitted Uses” that “[e]ach parcel or area of land within the AP/OS overlay district shall be used only for the purposes expressly permitted under the terms of the Williamson Act contract applicable to such land.” (Emphasis added) 9 Effective December 24, 2001, as to the Property to be Annexed, Garrod Trust entered into a Land Conservation Contract with the County of Santa Clara under the Williamson Act (California Government Code Section 51200 et seq.). Pursuant to Government Code Section 51243, if the Garrod Trust Property is annexed to the City of Saratoga, on and after the effective date of the annexation by the City of any land under contract with the County, the City shall succeed to all rights, duties, and powers of the County under the contract. Once the AP/OS Zoning is added as required by the City General Plan, then under the terms of the applicable Williamson Act contract, the Property to be Annexed may be used for the production of agricultural commodities for commercial purposes, open space and uses compatible thereto as listed in Exhibit A of the December 24, 2001 Williamson Act contract. The compatible uses listed in Exhibit A which are most relevant to the Property to be Annexed are as follows (1) Residential uses incidental to the agricultural use of the land, including: a. Single-family homes for the property owner or lessee, which includes stockholders in family corporations, beneficiaries of family trusts and estates, owners of undivided partial interests in the fee, and joint tenants. b. Dwellings for persons employed in the agricultural use of land or structures used to provide educational experiences or day-care facilities for their children, provided the use is nonprofit and not open to the general public. **** (2) Accessory structures necessary and incidental to the agricultural use of the land, including: a. Facilities for the drying, packing or other processing of an agricultural commodity usually performed on the premises where it is produced, but not including slaughterhouses, fertilizer yards, bone yards, or plants for the reduction of animal or vegetable matter. b. Stands or shelters for the sale of agricultural commodities produced on the land. c. Farmer's markets, including an agricultural stand where agricultural commodities grown, raised or produced off the premises are offered for sale to the general public by the operator of the stand. d. Limited sales of agricultural supplies, including hay, seed, veterinary supplies and horse tack. The sale of farm equipment or horse trailers is specifically excluded. ****. f. Storage and maintenance facilities for trucks used exclusively for hauling agricultural produce, which must include produce grown on the property, as long as the remainder of the property can sustain an agricultural use. **** 10 (3) The maintenance of land in its natural state for the purpose of preserving open space for recreation or plant or animal preserves, or the holding of nonproducing land for future agricultural use or future mineral extraction. (4) Recreational uses: **** c. Public or private riding or hiking trails. d. Riding academies, stables, and boarding of horses or other livestock. e. Large animal clinics primarily for horses or other livestock, including associated stables and pasture. (Small animal hospitals and kennels are excluded.) **** (6) Educational, cultural, and religious facilities. a. Churches, including accessory structures, as long as such use does not substantially interfere with the primary agricultural use of the land within the preserve. b. Educational and cultural uses not located on prime agricultural soils which do not require major road improvements, and where traffic to and from the subject use location does not hinder or impair the agricultural operations in the surrounding area. At least three-quarters of the parcel must remain in agricultural or open space uses, and the maximum coverage of the site where the educational and cultural uses are to occur is limited to 20 acres. c. Seasonal and occasional social receptions at existing facilities and immediate surrounding grounds, which do not displace or interfere with agricultural and open space use of the parcel or any adjacent parcel. The critical question then becomes whether listing a use as a “compatible use” in a Williamson Act contract authorizes that use even though it might not be otherwise be expressly allowed in underlying Zoning District. City Resolution No. 550 establishing the AP/OS Zoning District appears to “authorize” the listed uses when it says: “That the hereinabove listed compatible uses will be the only uses permitted within said agricultural preserve….” (emphasis added) Once the 68-acre portion of the Garrod Trust Property currently in the County is annexed into the City, City Code Section 15-15.040 would apply because the City General Plan requires the City to apply its AP/OS overlay to the Property because it is subject to a Williamson Act contract. Section 15-15.040 provides as follows: “Permitted uses. Each parcel or area of land within the AP/OS overlay district shall be used only for the purposes expressly permitted under the terms of the Williamson Act contract applicable to such land.” 11 Normally, describing a use as a “permitted use” would “authorize” it in the Zoning District. The City Council certainly has the right to interpret Section 15-15.040 as authorizing the uses listed in the Williamson Act contract. The uses listed as compatible uses in the Williamson Act contract with the County are quite specific and clearly cover most (if not all) the uses currently being made on the 68-acre Garrod Trust Property being Annexed. Upon annexation, the City succeeds to all rights, powers and duties of the County’s Williamson Act contract. Uses Generally Authorized Under R-OS Zoning After consideration of the foregoing information, the City Council may then examine the currently existing uses on the Property to be Annexed to determine whether they would be “in harmony” with the applicable Zoning Regulations. As a result of the foregoing determinations of conformity of the existing uses on the Property to be Annexed with the City General Plan and the fact that the Zoning Regulations are to be applied in a manner consistent such General Plan, it is clear that those existing uses are generally consistent with the applicable R-OS Zoning. The uses allowed in R-OS Zoning include a commercial stable, a winery with conference facilities (up to 50 guests and not overnight), agricultural uses, picnic and camp sites, single family dwellings (one per lot + one second unit per lot), and accessory structures incidental to all of the foregoing. BASIS FOR DEEMING CURRENT USES AND STRUCTURES IN COUNTY TO BE LEGAL AND CONFORMING UPON ANNEXATION TO CITY City Code Section 15-65.035 authorizes the City to establish current uses and structures in the unincorporated area of the County of Santa Clara as having the status of legal and conforming upon annexation of the property on which they are located into the City. Section 15- 65.035 provides as follows: 15-65.035 Continuation after annexations; Regulations applicable to nonconforming uses or structures on property annexed to the City. (a) A structure lawfully existing on the effective date of its annexation into the City but which is in nonconformance at that time to any applicable City development standard shall be considered a legal nonconforming structure, unless (as hereby authorized) the City, at the time of annexation establishes a different status (in whole or in part) for that structure as a condition of such annexation. (b) A use lawfully existing on the effective date of its annexation into the City but which is in nonconformance at that time to any applicable City use regulation shall be considered a legal nonconforming use, unless (as hereby authorized) the City, at the time of annexation establishes a different status (in whole or in part) for that use as a condition of such annexation. As explained above, the most (if not all) of the currently existing uses and structures on the portion of the Garrod Trust Property located in the County and which will be annexed into the City appear to have been legally established under County Use Permits or before County permits were required. In any event, as also explained above, most (if not all) currently existing uses and structures in question do, in fact, conform to City regulations. Hence, the City may determine 12 that conformity to the City General Plan and Zoning Regulations exists and may establish conforming status upon annexation as to all current uses and structures on the Garrod Trust Property being Annexed. CURRENT USES AND STRUCTURES IN CITY - DISCUSSION OF LEGAL CONFORMING STATUS The Garrod Trust proposes to continue to operate that part of its Facility on the 51-acre portion of the Garrod Trust Property which is currently located in the City of Saratoga. The portion of the Winery/Equestrian Facility located on that 51-acre parcel (APN 503-12-990) includes the following currently existing uses and structures: (1) uses for stables and riding academy/day camp/vaulting program, riding lessons, boarding horses, , training horses, and equipment and supplies for horses and riders, picnicking, vineyards, winery administrative office, parking, family and employee housing (1 single family dwelling, 0 cottages/second units and 3 trailers/modular units for employees), outdoor storage, and supporting food service and other uses; and (2) structures (all pre-dating1964 unless otherwise specified) which include: • Three trailers/cottages/modular units (housing for employees) (Dick Garrod 1975) • One administrative office for the winery • One special purpose barn (hay) • Miscellaneous covered horse paddocks (1965-1975) • Riding academy/day camp buildings (2) (1965)/summer kitchen • One Metal Shop (1980) • Pastures and vineyards of undetermined acreage. The City has no records of any permits authorizing these uses or structures. However, the County’s 1994 Staff Report for the Use Permit Modification adding the Winery to the existing Commercial Stables use states as follows: “This use permit would only cover the portion of applicant’s property that is unincorporated. According to the city, a use permit for the portion of the facility within its jurisdiction would only require a use permit if a modification or expansion were proposed.” No modification or expansion of “the portion of the facility” within the City jurisdiction appears to have been proposed in 1994. Hence, it appears that the uses and structures on the 51-acre portion of the Garrod Trust Property which has been in the City since the City was incorporated have been treated by the City as lawful and conforming. In any event, the Zoning for the 51-acre Property already in the City is Agricultural Preserve/Open Space Overlay (“AP/OS”). As a result, under Section 15-15.040, the permitted uses (those which do not require a use permit) are those “expressly permitted under the terms of the Williamson Act contract applicable to such land.” 13 The terms of the November 2, 1970 Williamson Act contract applicable to the 51-acre portion of the Garrod Trust Property already in the City expressly permit the following uses without a use permit: • Production of agricultural commodities for commercial purposes. • The drying, packing or other processing of an agricultural commodity usually performed on the premises where it is produced. • Structures necessary and incidental to the agricultural use of the land. • The holding of nonproducing land for future agricultural use. • The maintenance of land in its natural state for the purpose of preserving open space for recreation or plant or animal preserves. • Single family dwellings incidental to the agricultural use of the land for the residence of the owner, and the family of the owner. Owner shall be construed to include: (b) beneficiaries of family trusts. • The construction and maintenance of a stand or shelter for the sale of agricultural commodities produced on the land. • The erection, construction, alteration or maintenance of gas, electric, water of communication utility facilities, in compliance with the City’s underground utility ordinance No. NS-3.20. • Public or private fishing. • Public or private riding or hiking trails. • Riding academy, stables and the boarding of horses or other livestock but not including an animal hospital or kennel. The above uses expressly permitted on the 51-acre Garrod Trust Property already in the City appear to cover all of the uses and structures located on that property. The only possible question would be the following: Does an “agricultural use of the land” include a riding academy, stables and the boarding of horses so that a hay barn, a metal shop and trailers, cottages or modular units for nonfamily employees could be considered “[s]tructures necessary and incidental to the agricultural use of the land” rather than a recreational use of the land? The City Council could reasonably interpret the language of the Williamson Act contract to answer that question in the affirmative. This would enable a finding of legality and conformity as to all existing uses and structures on the Property already in the City. As set forth below, the City Council’s interpretation could be documented in a Development Agreement and in a Use Permit. In any event, even if the City Council determines that certain existing uses or structures should not be deemed “conforming” upon annexation into the City, City Code Section 15-20.040 generally allows any use lawfully established prior to November 1, 1991 to be continued as a legal nonconforming use. Section 15-20.040 is a part of the City Zoning Regulations governing R-OS (Residential - Open Space Zoning), the Prezoning the City has placed on the Property to be Annexed, and provides that: 14 “Existing uses which were lawfully established prior to November 1, 1991 and meet the health regulations set forth in Section 7-20.220 of the City Code may be continued in conformity with the provisions stated in Article 15-65 of the City Code. Furthermore Section 15-65.035 quoted above gives the City Council even more flexibility to treat existing uses and/or structures as “legal conforming” or “legal nonconforming” uses or structures. PROPOSED PRE-ANNEXATION AGREEMENT GOVERNING PROPERTY TO BE ANNEXED TO CITY Pre-Annexation Agreements have previously been used by the City to establish the terms under which particular property will be annexed. Here, a Pre-Annexation Agreement is recommended for that purpose and specifically for the City Council to determine whether currently existing uses and structures on the Property to be Annexed will be deemed to have legal, conforming status once annexed to the City pursuant to City Code Section 15-65.035. PROPOSED DEVELOPMENT AGREEMENT GOVERNING PROPERTY ALREADY INSIDE CITY Development Agreements are authorized by Government Code Section 65864 et seq. and have previously been used by the City to establish the terms under which particular property will be used. Pursuant to Government Code Section 65865.2, a development agreement shall specify (among other things) the permitted uses of the property and the density or intensity of use. Here, a Development Agreement is recommended for the primary purpose of establishing whether currently existing uses and structures on the 51-acre Garrod Trust Property already in the City will be deemed to have legal, conforming status. Pursuant to Government Code Section 65867, a public hearing on a development agreement shall be held by the Planning Commission and by the City Council. Notice of intention to consider adoption of a development agreement shall be given as provided in Sections 65090 and 65091 in addition to any other notice required by law for other actions to be considered concurrently with the development agreement. Approval of a development agreement by the City Council is a legislative act requiring adoption of an ordinance and must be consistent with the City General Plan and the Hillside Specific Plan. ZONING AMENDMENT TO ADD AGRICULTURAL PRESERVE/OPEN SPACE (AP/OS) OVERLAY ZONING TO PROPERTY ANNEXED TO CITY The City General Plan requires any property subject to a Williamson Act contract to be placed under the AP/OS overlay zoning. Hence a Zoning Amendment will be prepared and will be referred to the Planning Commission for recommendation and return to the City Council for final action concurrent with any final Annexation of the Garrod Trust Property which is the subject of the attached Resolution Initiating Annexation. 15 16 COMBINED POST-ANNEXATION WILLIAMSON ACT CONTRACT – RESCISSIION AND SIMULTANEOUS ENTRY INTO NEW CONTRACT Upon Annexation, both existing Williamson Act Contracts will be within the jurisdiction of the City. For ease and consistency of administration by the City and in order to facilitate long- term planning, and any potential future implementation of modifications to Winery/Equestrian Facility, the Williamson Act Contracts could be rescinded for the purpose of simultaneously entering into one Williamson Act Contract covering the entire 120+ acres within the City and including a Compatible Uses List specifying as compatible all of the currently existing uses. See Government Code Section 51254. USE PERMIT The Use Permit to be issued by the City as part of this Annexation Process would be intended to provide additional validation of the currently existing uses and structures and to establish parameters regarding the number of horses that may be boarded at the facility the number of students at the riding academy, the number and size of shows or exhibitions, the volume of sales of hay, equipment or horses, the number of required parking spaces, the number and size of weddings, receptions, conferences and other events, and other similar types of parameters. ENVIRONMENTAL REVIEW CEQA Compliance is addressed in the Staff Report. CONCLUSION With the 2002 City General Plan interpretation and the above-described land use regulations and principles in mind, the City Council has the legal authority to determine whether to grant “conforming status” as requested by Garrod Trust. If the City Council approves initiating the annexation proceedings as requested by Garrod Trust, the existing uses and structures on the Property to be Annexed and the Property already in the City will be analyzed as to being lawfully established and for conformity as a whole with the City General Plan and Zoning Regulations.