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  Time Set   # 20.       
Board of Supervisors   
Meeting Date: 03/07/2017  
Brief Title:    Updated Agricultural Commercial Zoning regulations
From: Taro Echiburu, AICP, Director, Planning, Department of Community Services
Staff Contact: Eric Parfrey, AICP, Principal Planner, Department of Community Services, x8043
Supervisorial District Impact:

Subject
Conduct workshop to review options for a proposed Zoning Code Amendment related to commercial and tourism uses in the agricultural zones, including substantive changes to the Zoning Code regulations for special event facilities, bed and breakfast uses, and other agricultural commercial uses. (No general fund impact) (Echiburu/Parfrey)
 
Recommended Action
  1. Conduct workshop on the options for the proposed Zoning Code Amendment (Attachment A) and consider any public testimony; and
     
  2. Discuss the Zoning Code Amendment and direct staff as to any further revisions to the amendment; and

  3. Direct staff to refer the amendment to the Planning Commission to hold hearing(s) on the amendment.
Strategic Plan Goal(s)
Sustainable Environment
Flourishing Agriculture
Reason for Recommended Action/Background
Staff is requesting that the Board of Supervisors provide staff feedback on potential updates to zoning regulations regarding commercial and tourism uses in the agricultural zones.  Based on outreach and feedback received at public meetings to date, staff has prepared a table (Attachment A) that identifies several options to revise the current regulations.  After the Board has considered which option, or combination of options, are worth pursuing, staff will revise the proposed regulations, perform additional outreach to the various interest groups, and set the matter for workshops and hearings at the Planning Commission before returning to the Board for final action.

BACKGROUND
 
Chronology of Discussion on Agricultural Commercial Zoning Text Amendment
 
The following is a chronology of events beginning last February, 2016 when the Board last considered zoning text amendments related to commercial and tourism uses in the agricultural zones.
 
On February 23, 2016, the Board held a public hearing on a large package of zoning code amendments as part of the annual zoning code update process (the 2015 Zoning Code Amendments).  The Board approved most of the staff recommended amendments except for those related to commercial and tourism-related uses in the agricultural zones. Prior to approval, the Board removed the staff-proposed edits to sections addressing special event centers and bed-and-breakfast establishments (Secs. 8-2.306(k) and 8-2.306(l)); and removed proposed edits to the definitions of "bed-and-breakfast" and "cottages" in Sec. 8-2.307. The Board also directed staff to return with language for an ordinance to consider temporarily halting approval on new event centers and bed-and breakfast establishments in unincorporated areas of the county, and a proposal for a future workshop on the topic of commercial agricultural and tourism regulations.
 
On March 8, 2016, the Board held a public hearing on a 45-day temporary moratorium for all permits related to special event centers and bed-and breakfasts within the agricultural zones of the unincorporated area of Yolo County.  Following the hearing, the Board decided not to proceed with the temporary moratorium and directed staff to return to the Board with a proposal for a stakeholder process.
 
On March 22, 2016, the Board held a public hearing and adopted the small package of 2016 Zoning Code Amendments which included changes to the existing County Code that clarifies a special event facility on a lot greater than 40 acres may by right hold no more than one event per month and eight events per year.
 
At the same meeting on March 22, 2016, the Board of Supervisors approved a staff proposal for a process and timeline to review General Plan policies and Zoning Code regulations for commercial and tourism uses.
 
Community Services Department staff, assisted by staff from the Agricultural Commissioner’s office, organized a series of public meetings.  Public meetings occurred on April 3 and April 11, 2016 to solicit community input, and a Planning Commission workshop was held on April 14, 2016.
 
Planning Commission Recommendations
 
On April 14, 2016, soon after the two public meetings had concluded, the Planning Commission held a public workshop to discuss agricultural commercial and tourism policies and regulations and direct staff as to any possible revisions.
 
Following lengthy public testimony at the April 14 workshop, the Commission discussed the issues that had been raised and agreed with staff's brief summary of how to proceed for the next meeting:
  • Agree that no "major surgery" is required to the General Plan and zoning regulations;
  • Work on the definition of agri-tourism;
  • Review how other counties are regulating commercial and tourism uses in agricultural and rural areas;
  • Discuss how to regulate the locations of specific uses;
  • Discuss how to protect existing agricultural operations from impacts of new commercial and tourism activities; and
  • Address/re-evaluate regulation of paid vs. non-paid/non-profit special events.
On May 12, 2016, the Planning Commission held a second workshop on the same topics and again heard testimony from several dozen individuals. Staff had compiled a modest list of proposed amendments to the agricultural commercial regulations based on the guidance given by the Planning Commission at the previous April meeting.

In May, staff proposed the following changes:
  • Add development standards for large special event facilities;
  • Delete reference to "for-profit, paid" events;
  • Provide a consistent threshold to differentiate between small and large event facilities and B&Bs;
  • Delete the existing definition of agri-tourism; and
  • Delete the section regulating "other agri-tourism uses."
Following the public testimony, discussion by the Planning Commissioners generally concurred with the staff recommendations.  However, some Commissioners requested that approval of a large event facility should require the issuance of a Major, not Minor, Use Permit, which means all applications would be heard at the Planning Commission, not before the Zoning Administrator.  Based on recent history, staff agrees and has made this change to the proposed zoning regulations.

Remaining Issues
 
Since the last Planning Commission workshop in May, 2016, staff has continued to revise the recommended changes to the zoning regulations.
 
Several key issues remain to be resolved, which are discussed below.  The accompanying Table 1 (Attachment A) summarizes the various options for resolving the issues.
 
1.  How  to Define “Agri-tourism”
 
Descriptions and definitions for commercial agricultural uses, including agri-tourism uses, are found in two separate locations in the Zoning Code: Section 8-2.303 (Agricultural Use Types Defined) and Sec. 8-2.307 (Definitions).
 
The two sections must be clarified to distinguish between “commercial agricultural” uses, which is a broad category of activities, and “agri-tourism” uses, which include only some of the “commercial agricultural” uses. 
 
“Agricultural Commercial and Rural Recreation Uses” are described in Sec. 8-2.303 (Agricultural Use Types Defined). That description includes “wineries, commercial horse stables, ‘Yolo Stores,’ farm-based tourism, special events, festivals, lodging, horseshows, crop-based seasonal events, ancillary restaurants, educational experiences, agricultural technical tours, garden/nursery tours, historical agricultural exhibits, ranch/farm tours, and winery/vineyard tours." This description does not include several other individual uses listed in Table 8-2.304(c) (Allowed Land Uses and Permit Requirements) such as farm equipment sales and repair, nurseries, roadside stands, campgrounds, and rural sports activities.
 
The current Code lists individual commercial agricultural uses in Table 8-2.304, and includes separate definitions, for stables, wineries/breweries, special event facilities, bed and breakfasts, farm stays, campgrounds, and rural recreation.  However, the current Zoning Code includes a lengthy definition of “agri-tourism” in Sec. 8-2.307 (Definitions), but there isn’t a specific “agri-tourism use” listed in Table 8-2.304, although there is an activity listed use as "other agri-tourism uses.” (emphasis added)  This has created the impression among the public that the definition of agri-tourism applies to all tourism-related activities, which is not the case.
 
Staff recommends that the existing definitions of “agri-tourism” in Sec. 8-2-307, and and "other agri-tourism uses” described in Section 306(n)(1) be deleted. In their place, staff recommends that the existing description of "Agricultural Commercial and Rural Recreational" uses in Sec. 8-2.303(c) be clarified to distinguish “agri-tourism uses” as those commercial agricultural uses that are “incidental” to (not a major part of) the primary agricultural use of the property, from other commercial agricultural uses (such as bed and breakfasts and event facilities) that may not be incidental to agriculture on the site or in the area (see further discussion in (2), below).
 
Another option would be to retain the definition and description in both sections and amend the text to be consistent.
 
2.  Agricultural Commercial and Tourism-related Uses Incidental to Existing Agriculture
 
Over the last year, there has been discussion about whether uses such as event centers or bed and breakfasts are “incidental,” “appurtenant,” or connected to the existing agricultural use in the area or on a specific property. 
 
The issue is two-fold:  whether a proposed commercial agricultural use is incidental to the agricultural operations on the particular property or whether the use is incidental to the agricultural operations in the area in which it is located.
 
The "Agricultural Commercial and Rural Recreation" Use Type described in Sec. 8-2.303 states that “This Use Type includes commercial uses incidental to the agricultural or horticultural operations of the area that preserve the rural lifestyle and stimulate the agricultural economy” (emphasis added). 
 
The existing definition of “agri-tourism” in Sec. 8-4.307 (which is proposed for deletion) refers “to the act of visiting a working farm or ranch” and states “Agri-tourism includes activities and uses that are appurtenant to the agricultural operations,..” This latter phrase refers to agricultural operations of the property involved.

Some proposed commercial agricultural uses may be located on a small parcel, or be operated in a manner that makes the application of the “incidental” requirement difficult.  For example, a bed and breakfast may be proposed in a house on a small five or ten acre lot that does not support any existing viable agriculture.
 
As noted above, staff recommends that the Zoning Code be amended to clarify that “agri-tourism uses” are those commercial agricultural uses that are “incidental” to (not a major part of) the primary agricultural use of the property. Other commercial agricultural uses such as bed and breakfasts and event facilities, which are not defined as “agri-tourism uses,” may or may not be incidental to agriculture on the site or in the area.
 
3.  How to Define What Constitutes a “Special Event”
 
As the Board is well aware, there has been great deal of discussion about what constitutes an “event” held at a special event facility and/or bed and breakfast.  Some of the confusion arises when the maximum number of events that are allowed at a venue are defined as either for-profit or non-profit.  Earlier approvals of large special event centers (such as Freeheart Farms in Esparto) set a limit on the number of events that could be held during a calendar year and excluded non-profit events such as fundraisers for local fire districts or charitable organizations. However, the most recent approval of Field & Pond did not include this distinction and set an annual limit on the number of events regardless whether the event was for-profit or not.  

To help to resolve this issue, staff recommends that a definition of “special event” be added to the Zoning Code as follows:
 
A “special event” is a community or private gathering such as a harvest festival, wedding, seasonal tasting, or rodeo, that is held at a special event facility/tasting room. A special event includes all such gatherings, whether paid or unpaid. However, a special event does not include small informal gatherings of family members or personal friends of the special event operator/owner.

4.  Level of Review
 
Currently, the Zoning Code requires the issuance of a Minor Use Permit (a public hearing before the Zoning Administrator, appealable to the Planning Commission and then the Board) for large special event facilities, except that a Major Use Permit (Planning Commission hearing with direct appeal to the Board) may be required at the discretion of the Planning Director if there are potential compatibility issues, or if development standards are not met.  A Site Plan Review (which involves staff review with no public notice and no hearing) is required for small facilities, except at the discretion of the Planning Director a Minor Use Permit may be required.
 
For bed and breakfast facilities, a Minor Use Permit is required for large B&Bs (over 6 rooms), and a Site Plan Review is required for small B&Bs, except that a Major or Minor Use Permit, respectively, may be required at the discretion of the Planning Director.
 
Staff recommends that a greater level of review, a Major Use Permit issued by the Planning Commission, be adopted for large special event facilities and for large B&Bs.  
 
5.  “By right” special event facilities on large parcels    
 
The current Code allows a small special event facility on a parcel of 40 acres or more by right (without a Site Plan Review or Use Permit), if the facility holds no more than one event per month not to exceed eight events per year, generates less than 100 vehicle trips or fewer than 150 attendees per event, whichever is less.  The Code includes the same provision that, at the discretion of the Planning Director, a Site Plan Review or Minor Use Permit may be required. Staff is recommending to retain the current regulation as written.
 
An option would be to delete this regulation that allows small special event facilities on large parcels by right and to require a Site Plan Review for all small event facilities regardless of parcel size.
 
6.  Ensure Consistency with the Williamson Act
 
Many of the agricultural commercial/tourism applications that have been approved by the County to date are on lands that are subject to the Williamson Act.  The Williamson Act statutes include Government Code Section 51238.1, which requires that uses approved on contracted lands be consistent with the statutes’ “principles of compatibility.”
 
Staff recommends that a new subsection be added to the development standards for special event centers in Sec. 8-2.306(k) as follows:
 
(10)      A special event facility located on lands under a Williamson Act must be found to comply with the Williamson Act statutes, including Government Code Section 51238.1. 

Although such findings are already required by law, having the requirements specified in the Code will assist landowners in understanding the requirements for tourism-related uses on Williamson Act parcels.  

Another option would be to amend the Zoning Code to prohibit special event facilities and B&B’s on lands under a Williamson Act contract, regardless of whether such uses can be compatible with agricultural operations.  However, this restriction would seriously reduce the number of parcels in the agricultural zones that could apply for commercial and/or tourism-related uses, since three-quarters of the agricultural land in the unincorporated area is under contract.  Such a restriction may require the County to amend existing General Plan polices, which encourage “agricultural commercial and agricultural tourism” activities.
 
7. Other changes
 
Numerous other minor changes to the existing zoning regulations for these uses will be recommended by staff to clarify the language.
 
Next Steps
 
Staff is requesting that the Board of Supervisors give staff guidance on the main components of the Zoning Code changes as discussed in this staff report.  Following Board discussion, staff will draft revisions to the Zoning Code, release it for public review, and return to the Planning Commission for public hearings. During this period staff will also continue outreach to all interested parties, including participants of the public meetings and the citizens’ advisory committees. After a recommendation from the Planning Commission, the amendments will be forwarded to the Board of Supervisors for a hearing and final action.
Collaborations (including Board advisory groups and external partner agencies)
County Counsel has reviewed this staff report.

Fiscal Impact
No Fiscal Impact
Fiscal Impact (Expenditure)
Total cost of recommended action:    $   0
Amount budgeted for expenditure:    $   0
Additional expenditure authority needed:    $   0
On-going commitment (annual cost):    $  
Source of Funds for this Expenditure
Attachments
Att. A. Options for Zoning Code Amendment

Form Review
Inbox Reviewed By Date
Leslie Lindbo Leslie Lindbo 01/11/2017 02:13 PM
Leslie Lindbo Leslie Lindbo 02/03/2017 12:12 PM
County Counsel Hope Welton 02/23/2017 05:38 PM
Eric May Eric May 02/27/2017 01:24 PM
Form Started By: eparfrey Started On: 12/07/2016 01:37 PM
Final Approval Date: 02/28/2017

    

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