Staff Report with attachments
PREPARED BY: Monica Renn
Economic Vitality Manager
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Community Development
Director, and Interim Finance Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 10/18/2022 ITEM NO: 5
DATE: October 13, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Adopt an Extension to June 30, 2023 to the Town’s Economic Recovery
Resolution to Allow for the Continued Support of the Town’s Economic
Recovery Efforts, including the Completion of the Construction and
Implementation of the Semi-Permanent Parklet Program
RECOMMENDATION:
Adopt an extension to June 30, 2023 to the Town’s Economic Recovery Resolution, to allow for
the continued support of the Town’s Economic Recovery efforts, including the completion of
the construction and implementation of the Semi-Permanent Parklet Program.
BACKGROUND:
The Town Council remains proactive, adaptive, and flexible in its efforts and actions to support
the business community through the dynamic economic recovery environment created by the
COVID-19 pandemic. The Council has been steadfast in its support of the Town’s business
community, while delicately balancing competing interests and continuing to consider
additional options to provide available assistance.
One key element of continued economic recovery support is the currently adopted Economic
Recovery Resolution, Resolution 2021-051, which provides flexibility and additional
opportunities for businesses to adapt to the dynamic environment. Some of the ongoing
opportunities of note in the Resolution include: Town-subsidized business permits; the ability
for private commercial properties to flex their space for outdoor dining and other business
opportunities; the subsidized semi-permanent parklet program with grant funding allocated by
the Town Council using America Recovery Plan Act (ARPA) funds; streamlined opportunities
PAGE 2 OF 4 SUBJECT: Approve an extension to the Economic Recovery Resolution DATE: October 10, 2022
BACKGROUND (continued):
that reduce cost and timelines for businesses to locate, relocate, bifurcate and evolve within
the Town; and time extension on the expiration of permits.
At the direction of the Town Council, these efforts and initiatives have provided many
businesses with new options and flexibility to pivot during some of the most trying economic
times.
The Economic Recovery Resolution was first adopted on May 26, 2020, then extended on two
subsequent occasions with the current, Resolution 2021-051, extending until December 31,
2022. As the Town Council continues to acknowledge the successful support and process
streamlining the Resolution provides the Town’s business community, staff is recommending
another extension to the Resolution (Attachment 1), until June 30, 2023.
DISCUSSION:
Since the semi-permanent parklet program and grant funding structure were adopted on April
20, 2021, Town staff has been working continuously with stakeholders to implement the semi-
permanent parklet program. This project originally set a completion date of December 31,
2022, requiring all parklets to be fully built with final inspection approval, and the required
paperwork filed for grant payment.
The Town’s recovery efforts, including the semi-permanent parklet program, have become a
model recovery program throughout the Bay Area on account of the Town Council’s proactive
direction and support of economic recovery and community vitality. With such swift action and
subsequent scale of programming, there has also been a bit of a learning curve that has
presented a fair number of challenges along the way. This coupled with rising material costs,
delayed material deliveries, and stretched contractor resources, has resulted in the timeline for
the semi-permanent parklet program becoming longer than originally anticipated. Staff has
worked with stakeholders to navigate these challenges; however as a result, it is not feasible to
assume that the original project completion deadline of December 31, 2022 can be met.
Aside from these challenges, the Economic Recovery Resolution continues to bring incentives
and a smoother path forward for many stakeholders, offering new opportunities for business
recovery and success. For example, the ability to enact an Economic Recovery Agreement in
lieu of a Conditional Use Permit for new personal services in the C2 and Office zones, has
allowed for small business owners to expand, relocate, or open their own location, in most
cases, in small, harder to fill vacancies much quicker and at less of a financial investment. This
change offers a savings of nearly $9,000 and months in a Conditional Use Permit review process
for the small businesses, a process that must be completed before a business may begin
applying for building permits for tenant improvements.
PAGE 3 OF 4 SUBJECT: Approve an extension to the Economic Recovery Resolution DATE: October 10, 2022
DISCUSSION (continued):
Staff estimates that extending the Resolution until June 30, 2023, should provide ample time
for semi-permanent parklet program completion.
The chart below offers a snapshot of general phases in the parklet design and construction
process, with the column on the right noting the number of semi-permanent parklets in that
phase, at the time of this report. The construction, inspection, and reporting processes are
dynamic thus some parklets will move through the phases rather quickly, while others will take
longer in a particular phase for project specific reasons.
PARKLET PHASES # OF PARKLETS
Parklet complete, full grant issued 3
Parklet complete, awaiting grant documents or grant payment in process 15
Parklet in construction 8
Parklet building permit issued and agreements executed 3
Parklet in design, building permit review, or agreement processing phase 7
CONCLUSION:
Town staff recommends that the Town Council adopt an extension to the Town’s Economic
Recovery Resolution until June 30, 2023, to allow for the continued support of the Town’s
Economic Recovery efforts, including the completion of the construction and implementation of
Semi-Permanent Parklet Program.
COORDINATION:
The preparation of this report was coordinated with the Community Development Department.
FISCAL IMPACT:
Funding for the Economic Recovery efforts supported by the Economic Recovery Resolution
have been previously allocated by the Town Council.
ENVIRONMENTAL ASSESSMENT:
The program extended by this resolution is statutorily and categorically exempt from CEQA as
outlined in the resolution.
PAGE 4 OF 4 SUBJECT: Approve an extension to the Economic Recovery Resolution DATE: October 10, 2022
Attachment:
1. Draft Economic Recovery Resolution
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Resolution 2022- October
RESOLUTION 2022- RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
APPROVING TEMPORARY OUTDOOR PUBLIC SPACE EXPANSION AND TEMPORARY
MODIFICATIONS TO SPECIFIC PROVISIONS RELATED TO BUSINESS PERMITS,
PROCESSES, PROVISIONS, AND ACTIVITIES DURING THE COVID-19 PANDEMIC TO
OFFER ECONOMIC RELIEF, RECOVERY, AND OPPORTUNITIES FOR COMMUNITY AND
ECONOMIC VITALITY
WHEREAS, pursuant to the Town’s police power, as granted broadly under Article XI,
Section 7 of the California Constitution, the Town Council has the authority to enact and
enforce ordinances and regulations for the public peace, morals, and welfare of the Town and
its residents; and
WHEREAS, pursuant to California Government Code Section 8680.9, a local emergency
is a condition of extreme peril to persons or property proclaimed as such by the governing body
of the local agency affected by a natural or manmade disaster; and
WHEREAS, California Government Code Section 8634 states that “During a local
emergency the governing body of a political subdivision, or officials designated thereby, may
promulgate orders and regulations necessary to provide for the protection of life and
property…”; and
WHEREAS, the purpose of a local emergency proclamation is to provide extraordinary
powers to issue rules and regulations on matters reasonably related to the protection of life
and property as affected by such emergency, obtain vital supplies, and require emergency
services of employees; and
WHEREAS, international, national, state, and local health and governmental authorities
are responding to an outbreak of respiratory disease caused by a novel coronavirus named
"SARS-CoV-2," and the disease it causes has been named "coronavirus disease 2019,"
abbreviated COVID-19, ("COVID-19"); and
WHEREAS, on January 30, 2020, the World Health Organization declared the Covid-19
outbreak a Public Health Emergency of International Concern; and
WHEREAS, on January 30, 2020, the United States Secretary of Health and Human
Services declared a Public Health Emergency; and
WHEREAS, on January 31, 2020, the first case of COVID-19 was confirmed in Santa Clara
County (“County”); and
ATTACHMENT 1
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WHEREAS, on February 10, 2020, the Santa Clara County Board of Supervisors and
Department of Public Health declared a local emergency and local public health emergency to
aid the regional healthcare and governmental community in responding to COVID-19; and
WHEREAS, on March 4, 2020, the Governor of the State of California declared a state of
emergency to make additional resources available, formalize emergency actions already
underway across multiple state agencies and departments, and help the state prepare for
broader spread of COVID-19; and
WHEREAS, on March 11, 2020, the World Health Organization declared COVID-19 an
International Pandemic; and WHEREAS, on March 12, 2020, the Town Manager of Los Gatos
acting in the capacity of Town of Director of Emergency Services, issued a Proclamation of Local
Emergency; and
WHEREAS, on March 13, 2020, the President of the United States of America declared a
national emergency and announced that the federal government would make emergency
funding available to assist state and local governments in preventing the spread of and
addressing the effects of COVID-19; and
WHEREAS, on March 16, 2020, the Santa Clara County Department of Public Health
directed all individuals in the County to Shelter in Place and mandated requirements, including
but not limited to, social distancing, staying home if sick, canceling or postponing group events,
working from home, and other precautions to protect public health and prevent transmission of
this communicable virus; and
WHEREAS, on March 17, 2020, the Town Council of the Town of Los Gatos ratified the
Proclamation of Local Emergency; and
WHEREAS, the pandemic and necessary federal, state and local public health orders
requiring social distancing to prevent spread of COVID- 19 have had and will continue to have
devastating economic impacts on the local community, including residents, businesses,
employees and Town operations; and
WHEREAS, the longer the emergency order is in place, the more difficult it will be for
small retail and restaurant operators to return and reopen their businesses; and
WHEREAS, although the Town continues to be in an emergency response phase, an
emergency management principle has been established that recovery planning must begin as
early as possible to strengthen community resilience while shortening the economic recovery
timeline; and
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Resolution 2022- October
WHEREAS, some of the actions that the Town has taken during this state of emergency
to support local business are: eviction protections; suspension of rent for Town owned
Facilities; a website with COVID 19 and business resources; and assistance for restaurants and
food retailers by allowing sales of alcohol via delivery and takeout, providing flexibility for
restaurants to sell groceries, and allowing curbside pickup; and
WHEREAS, due to the severe economic impacts of COVID- 19 and its economic impacts
on the community and the Town organization, the Council deems it necessary to take
additional action to suspend enforcement of certain provisions of the Town of Los Gatos Town
Code and provide temporary process streamlining measures to facilitate the retention and
attraction of Los Gatos businesses during the COVID-19 pandemic, reduce economic impacts,
foster recovery, encourage economic vitality, and reduce commercial vacancies; and specified
below to support social distancing requirements, effective public communication related to
rapidly transitioning business re-opening status, and economic viability of businesses in
adhering to permitted opening and social distancing requirements; and
WHEREAS, the below measures are intended to provide economic relief to businesses
that are experiencing economic uncertainty while complying with State and County Orders.
Accordingly, the Town will facilitate a temporary “pilot” program, which will include the
development and implementation of a plan to use the right- of-way, sidewalks and streets to
help maintain social distancing during the first few phases (stages) of reopening consistent with
the State’s Resilience Roadmap and continued economic support of businesses for uses such as
walking space, outdoor dining, and pick- up/delivery areas. The program would provide for
residents to receive the health and wellness benefits of being outdoors and support businesses
with enough space to safely physically distance; and
WHEREAS, the program is established for the purpose of supporting and facilitating the
recovery of business and economic activity in the Town by expanding the spaces available for
the safe conduct of such activities for Town businesses and their customers and patrons to
create more physical distance for pedestrians and business patrons to maintain physical
distancing; and nothing herein is intended to nor shall be deemed to create open gathering
places or public fora unrelated to the intended business support and recovery purpose; and
WHEREAS, over the years, the Town’s conservative budgeting practices have resulted in
healthy reserves and frequent annual budgetary surplus with a balanced Operating Budget for
Fiscal Year 2020-2021 with no reductions to service, despite significant revenue and other
economic impacts from sheltering-in-place. Those reserves and surpluses are now paying the
Town huge dividends during the COVID 19 crisis; and
WHEREAS, on May 26, 2020, the Town Council reallocated $1,900,000 in prior surpluses
reserved for downtown streetscape revitalization toward COVID-19 economic stimulus recovery
efforts. This is one of the single largest economic recovery packages ever proposed in the
Town’s history; and
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WHEREAS, time is of the essence to quickly implement a program to allow for safe
physical distancing consistent with the State’ s Resilience Roadmap and County Guidelines in
order to address both public health and economic impacts of COVID- 19, as residents have been
primarily indoors since the initiation of the State and County Orders, this will be a dynamic
temporary program, receiving input from the Town Council, and shall be subject to
administrative modification by the Town, as authorized herein, as necessary in response to
emerging issues or concerns of public, health, safety or convenience; and
NOW, THEREFORE, BE IT PROCLAIMED AND RESOLVED by the Town Council of the
Town of Los Gatos that:
SECTION 1. All recitals set forth above, and all recitals included in support of Federal,
State, and County actions referenced herein, are adopted as though fully set forth herein as
findings in support of this Resolution and, after considering all such findings and current local
circumstances the Council hereby declares the continuing existence of a local emergency
related to the continued threat of COVID- 19 as it relates to public health and economic
impacts; and
SECTION 2. In order to support the re-opening of restaurants and other businesses in
accordance with the State Executive Order N-60-20, the Town Council hereby directs and
authorizes the Town Manager to implement the following strategies that may be used
independently or in combination, as outlined below:
1. As identified by the Town generally along N. Santa Cruz Avenue (south of Highway 9/Los
Gatos-Saratoga Road) and Main Street, private businesses in the C-2 Zone are permitted
to utilize public street parking spaces in proximity to their business for expanded dining
and alcohol service, retail, or business use space to facilitate safely distanced pedestrian
circulation, expanded outdoor dining and alcohol service, and customer queuing, pickup
and waiting areas associated with permitted business activities and pursuant to the
terms agreed upon in an Economic Recovery Agreement between the business and the
Town;
2. Suspend parking requirements in private commercial lots to allow some parking spaces
to be utilized for restaurant seating or business activities given sufficient parking
remains available for customer use, and to allow for such to facilitate safely distanced
pedestrian circulation, expanded outdoor dining and alcohol service, customer queuing,
and pickup and waiting areas associated with permitted business activities and pursuant
to the terms of agreed upon in an Economic Recovery agreement between the business
and the Town;
3. Allow pop-up patios, parklets, and other areas to encourage and support additional
ideas for outdoor space such as use of parts of the sidewalk for signage, merchandise
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Resolution 2022- October
and queueing, where adequate sidewalk width exists consistent with disabled access
requirements and public safety; and
4. Current Los Gatos businesses may relocate, expand, or open an additional business
location without obtaining a new Conditional Use Permit provided the business enters
into an Economic Recovery agreement with the Town, documenting that any change of
ownership is subject to a new Conditional Use Permit or Conditional Use Permit
modification consistent with the existing Town Code;
5. The requirement for personal service businesses to obtain a Conditional Use Permit in
the C-2 zone is suspended, and personal service businesses may locate within Office
Zones (O), provided the business enters into an Economic Recovery agreement with the
Town, documenting that any change of ownership is subject to a new Conditional Use
Permit, or must comply with current provisions consistent with the existing Town Code;
6. The requirement for up to a total of five (5) markets, bars and/or other miscellaneous
commercial businesses to obtain a Conditional Use Permit in the C-2 zone is suspended
provided the business enters into an Economic Recovery agreement with the Town,
documenting that any change of ownership is subject to a new Conditional Use Permit
consistent with the existing Town Code;
7. The cost for a new Conditional Use Permit is reduced by 50% with the Town paying the
balance of the fees;
8. Alcohol consumption is permitted with meals in Town parks, temporary pop-up parks,
temporary patio dining, and parklets; and
9. The expiration date for all building permits and planning entitlements shall be extended
by two years.
SECTION 4. Environmental Review. As a result of the COVID- 19 public health emergency,
the Town of Los Gatos proposes a temporary program to use the right- of-way, sidewalks and
streets to help maintain social distancing during the first few phases (stages) of reopening
consistent with the State’ s Resilience Roadmap and provide for residents to receive the health
and wellness benefits of being outdoors and support businesses with enough space to safely
physically distance. The proposed project is exempt from environmental review pursuant to the
California Environmental Quality Act (CEQA) as followed:
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Resolution 2022- October
A. The project is statutorily exempt under State CEQA Guidelines Section 15269
Emergency Projects), because the temporary program includes specific actions that
would allow for safe physical distancing consistent with the State’ s Resilience
Roadmap and County and State Guidelines in order to mitigate the COVID- 19 public
health emergency.
B. The project is categorically exempt under State CEQA Guidelines Section 15301
Existing Facilities) because the actions identified in the program are limited to the
permitting, leasing, and minor alteration of existing public facilities, including
existing streets, sidewalks, bicycle and pedestrian trails, which would not result in
the creation of additional automobile lanes. The program would result in a negligible
expansion of existing commercial uses and a negligible expansion of the public’ s use
of Town right of- way, as the uses included in the temporary program would not
vary from the current uses of commercial businesses, residential areas, or public
access within the Town’ s right- of-way.
SECTION 5. Notwithstanding any other Town policy or procedure, the Town Engineer
shall be authorized to review and approve on behalf of the Town any and all design and
construction necessary as part of the temporary program herein and the Town Manager shall
be authorized to enter into agreements on behalf of the Town to implement the strategies
herein without further action of the Town Council.
SECTION 6. Any provision of the Los Gatos Town Code or any appendix thereto
inconsistent with the provisions of this Resolution, to the extent of such inconsistencies and no
further, is hereby repealed or modified to that extent necessary to affect the provisions of this
Resolution.
SECTION 7. All current and prior emergency and public health orders as currently
enacted and in effect, or as subsequently amended or modified, issued by the Governor, the
State or County Public Health Official or the Town or County Emergency Services Director are
expressly adopted.
SECTION 8. This resolution remains in place until June 30, 2023.
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Resolution 2022- October
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los
Gatos, California, held on the 18th day of October, 2022 by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ATTEST:
TOWN CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________