Attachment 3 - April 26, 2023 Planning Commission Staff Report (with Exhibits 1-8)PREPARED BY: Sean Mullin, AICP
Senior Planner
Reviewed by: Planning Manager, Community Development Director, Town Attorney, and Economic
Vitality Manager
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6872
www.losgatosca.gov
TOWN OF LOS GATOS
PLANNING COMMISSION
REPORT
MEETING DATE: 04/26/2023 ITEM NO: 2
DATE: April 21, 2023
TO: Planning Commission
FROM: Joel Paulson, Community Development Director
SUBJECT: Forward a Recommendation to the Town Council on Land Use and Economic
Recovery Amendments to Chapter 29 (Zoning Regulations) of the Town Code
Regarding Personal Service Businesses, Bars, Markets, Banks, Financial
Services, Formula Retail, Group Classes, Veterinarians, Offices, and
Definitions. The Proposed Amendments to the Town Code are Not
Considered a Project Under the California Environmental Quality Act. Town
Code Amendment Application A-23-001. Project Location: Town Wide.
Applicant: Town of Los Gatos.
RECOMMENDATION:
Forward a recommendation to the Town Council for approval of the land use and economic
recovery amendments to Chapter 29 (Zoning Regulations) of the Town Code.
CEQA:
In accordance with CEQA Guidelines Section 15378, these proposed ordinance amendments are
not a “project” subject to CEQA because the proposed amendments affect processing of
applications only and will not impact the physical environment. Individual projects processed in
accordance with the Town’s Zoning Code will undergo CEQA review.
FINDINGS:
In accordance with CEQA Guidelines Section 15378, these proposed ordinance amendments
are not a “project” subject to CEQA because the proposed amendments affect processing of
applications only and will not impact the physical environment. Individual projects
processed in accordance with the Town’s Zoning Code will undergo CEQA review; and
The amendments to Chapter 29 of the Town Code are consistent with the General Plan.
ATTACHMENT 3
PAGE 2 of 16 SUBJECT: Economic Recovery Code Amendments DATE: April 21, 2023
BACKGROUND:
Throughout the last several years, the Town Council has identified strategic priorities related to:
• Community vitality;
• Economic recovery;
• Business permit streamlining; and
• Polices and ordinances as they relate to business activity.
Given the priorities identified by the Town Council, staff brought forward a series of policy and
ordinance changes to begin this streamlining work, creating a more welcoming and flexible
business environment with reduced timelines and fee structures for businesses. The recently
adopted 2023 - 2025 Strategic Priorities includes Economic Vitality and Pandemic Recovery
(Exhibit 3), providing an opportunity to continue the streamlining work that began before the
pandemic to support the business community during the recovery.
Exhibit 4, Economic Vitality and Land Use Streamlining, illustrates the policy and ordinance
streamlining that took place prior to 2020. Once the Pandemic hit the community and the
devastating effects became notable, the local business community and economic well-being of
the Town’s shopping areas were among the stakeholder groups most negatively affected.
On March 12, 2020, the Director of Emergency Services (Town Manager) issued a proclamation
pursuant to Town Code Section 8.10.035, declaring the existence of a local emergency within
the Town due to the COVID-19 pandemic. On March 17, 2020, the Town Council adopted
Resolution 2020-008 Ratifying and Continuing the Proclamation of Existence of Local
Emergency Issued by the Director of Emergency Services (Exhibit 5).
At this point, it was understood that the potential length and impacts of the Pandemic were
unknown and the Town needed to make adjustments to local land use and business permit
policies to align with those being made at the County, State, and Federal levels through
emergency orders, and to offer flexibility and options to support the local business community
in the uncertain times. After thoughtful discussion by the Town Council, an Economic Recovery
Resolution was adopted to provide businesses with options for flexibility to modify their
business offerings. On June 3, 2020, an Economic Recovery Resolution 2020-022 was adopted
by the Town Council, and has since been modified and extended with a current sunset date of
June 30, 2022. Exhibit 6 is the current Economic Recovery Resolution, 2022-066.
A high-level overview of the streamlining and flexibility offered through the Economic Recovery
Resolution includes:
• Suspension of rent for Town-owned facilities;
• Providing business resources through a COVID-19 website;
PAGE 3 of 16 SUBJECT: Economic Recovery Code Amendments DATE: April 21, 2023
BACKGROUND (continued):
• Allowing restaurants to sell groceries, provide for curbside pickup, and sell alcohol via
delivery and takeout;
• Allowing outdoor dining in parklets along N. Santa Cruz Avenue and in private parking lots;
• Allowing the use of pop-up patios, parklets, and outdoor spaces for signage, merchandising,
and queueing;
• Allowing existing businesses in Town to relocate, expand, or open additional locations
without obtaining a new Conditional Use Permit (CUP) through an Economic Recovery
Agreement;
• Suspending the requirement for personal service businesses to obtain a CUP in the C-2 zone
through an Economic Recovery Agreement;
• Reducing the cost for a new CUP by 50 percent, with the Town paying the balance of the
fees;
• Allowing alcohol consumption with meals in Town parks, temporary pop-up parks,
temporary patio dining areas, and parklets; and
• Extending the expiration date for all building permits and planning entitlements by two
years.
The California Emergency Services Act (California Government Code Section 8550, et seq.)
provides that once the Town Council determines that there is no need to continue the local
emergency, the Council shall proclaim the termination of the local emergency at the earliest
possible date. The Department of Health and Human Services is planning for the Federal Public
Health Emergency for COVID-19 to expire on May 11, 2023. In response, the Governor of the
State of California ended the State emergency declaration related to COVID-19 on February 28,
2023, and the County of Santa Clara demobilized its remaining COVID-19 mass vaccination and
mass testing sites. On March 7, 2023, the Town Council adopted Resolution 2023-011,
terminating the local emergency in line with the end of the State emergency declaration related
to COVID-19 (Exhibit 7).
DISCUSSION:
With the quick adoption and implementation of Resolution 2020-022, the Town experienced
fewer vacancies and business attrition during the darkest times of the Pandemic and was quick
to assist businesses in reopening in new formats, locations, or with other modifications that
allowed them to be compliant with health orders while serving the community through their
business offerings. Since the adoption of Resolution 2020-022, the Town continues to see the
benefit of the flexibility and latitude the streamlining offers businesses. Staff is bringing
forward these recommendations to memorialize this flexibility within the Town Code to
continue to welcome businesses and work toward the Town Council’s strategic priority related
to economic vitality and pandemic recovery.
PAGE 4 of 16 SUBJECT: Economic Recovery Code Amendments DATE: April 21, 2023
DISCUSSION (continued):
Staff has received positive feedback from business and property owners, as the flexibility
throughout the Pandemic and beyond has allowed for them to be agile and quickly adjust with
the dynamic economic environment. Customer and community demands are more fluid than
ever as folks are establishing their own new “normals” for comfortable shopping, dining,
personal services, and community experiences. The proposed changes will continue this work
and allow the Town to remain welcoming to a variety of business models through reduced
timelines and fee structures.
The current economic environment is driven by social media, innovation, in-person
experiences, and the ability to meet customer expectations. This fast-paced environment
requires businesses to be on their toes and ready to pivot to keep up with the evolution of the
community. Business life cycles vary greatly and ebb and flow with these economic trends. By
creating a more flexible and streamlined permitting environment, the Town is making space to
allow for current businesses to make these shifts more readily, and welcome new businesses
with less perceived obstacles.
In consideration of the dynamic economic environment and the Town Council’s adopted
strategic priority that promotes updates to Town policies and ordinances and permit
streamlining related to economic vitality and pandemic recovery (Exhibit 3), staff is bringing
forward recommendations for Town Code amendments related to CUP processes, land use
definition clarity, and zoning updates to ultimately offer a more welcoming, flexible, and
streamlined process for the business community. The specific amendments recommended are
being identified based on the performance of the economic recovery efforts enacted during the
COVID-19 emergency declaration, land use and economic vitality streamlining efforts during
2015 to 2019, and interactions with the business community. The proposed amendments
provide continued support through increased flexibility and reduced process and cost.
A. Personal Service Businesses as a Permitted Use in the C-2 and O Zones
The Town Code defines a personal service business as one that predominately sells personal
convenience services directly to the public, including but not limited to, barbers, beauty
salons and related services, cosmetologists, electrolysis, facial and/or skin care, hair
dressers and/or hair stylists, hair removal and/or replacement, manicurists, nail salons,
pedicurists, permanent make-up, skin and body care, piercing, spas, tanning salons,
tattooing, cleaners, dog grooming, tailors, and other services of a similar nature. Personal
service business does not include travel agencies, insurance offices, law offices, architect
offices, or any other type of office use.
Under the current Town Code, a personal service business is a permitted use in the C-1, CH,
and LM zones. In the C-2 zone, personal service businesses are allowed on the ground floor
with a CUP and are a permitted use in specific areas described in Section 29.60.320 (c)(2), as
PAGE 5 of 16 SUBJECT: Economic Recovery Code Amendments DATE: April 21, 2023
DISCUSSION (continued):
shown on the map included as Exhibit 8. A CUP for a personal service use must be
approved by the Planning Commission.
While the local COVID-19 emergency order was in place, the Town Council suspended the
requirement for personal service businesses to obtain a CUP in the C-2 zone and allowed
them to locate within the Office zone. This action offered locational flexibility and reduced
costs and timelines to personal service businesses during the emergency order.
To continue the support of the business community consistent with the strategic priority,
staff proposes amendments to the Town Code allowing personal service businesses on the
ground floor throughout the C-2 zone, making them a permitted use by eliminating the CUP
requirement, and removing limitations based on location within the C-2 zone. Additionally,
personal service businesses would be added as a permitted use in the O zone. Below is a
summary of the amendments to the Town Code necessary to carry out these changes:
• Update the definition of personal service businesses by adding specific services that
have become common since the definition was originally developed (29.10.020);
• Add personal service businesses to the required parking for retail and commercial shops
to reflect Town practice [29.10.150 (b)(1) and (c)(9)];
• Eliminate the CUP requirement for personal service businesses in the C-2 zone from the
Table of Conditional Uses (29.20.185);
• Remove personal service businesses from the required findings for granting a CUP
[29.20.190 (b)];
• Add personal service businesses as a permitted use in the O and C-2 zones (29.60.085
and 29.60.320); and
• Eliminate the locational restrictions for personal service businesses in the C-2 zone
[29.60.320 (c)]
The impact of the proposed amendments to the Town Code regarding personal service
businesses are summarized in the table on the following page.
PAGE 6 of 16 SUBJECT: Economic Recovery Code Amendments DATE: April 21, 2023
DISCUSSION (continued):
Impact of Town Code Amendments on Personal Service Businesses in the C-2 and O Zones
Current Code Amended Code
C-2 Zone*
Application Type, Fee CUP by Planning Commission: $9,098.64
Use and Occupancy: $278.16
Business License: $75 to $975
Use and Occupancy: $278.16
Business License: $75 to $975
Average Processing Time 3 to 4 months Over the counter (typical)
O Zone
Application Type, Fee Not permitted Use and Occupancy: $278.16
Business License: $75 to $975
Average Processing Time Not permitted Over the counter (typical)
* Where a CUP is required
B. Bars, Markets, and other Miscellaneous Commercial Businesses
The Town Code currently includes definitions and regulations for bars and restaurants. Bars
are defined as a drinking place where alcoholic beverages and snacks are served; possibly
with entertainment such as music, television screens, video games, or pool tables. Bars are
a conditional use allowed only in the C-2 zone and require approval by the Town Council.
Restaurants are defined as a retail food service establishment in which food and beverage is
prepared, served, and sold to customers for on-site or take-out consumption. Restaurants
without alcohol service are a conditional use allowed in the C-1, C-2, CH, LM, and CM zones.
Restaurants with alcohol service also require a CUP, but are not allowed in the CM zone. A
CUP for either type of restaurant may be considered by the Development Review
Committee (DRC).
While the local COVID-19 emergency order was in place, the Town Council suspended the
requirement for up to five (5) markets, bars, and/or miscellaneous commercial businesses
to obtain a CUP in the C-2 zone. This action offered reduced costs and timelines to specific
Business types during the emergency order; however, the resolution and the current Town
Code lack a definition for “market” and do not clarify what is meant by “miscellaneous
commercial businesses.” One of the five available markets, bars, and/or miscellaneous
commercial businesses executed an Economic Recovery Agreement, a wine tasting
establishment without food located in the C-2 zone.
The market concept typically offers a hybrid of retail and restaurant uses within a single
business. The current framework of the Town Code adequately regulates these types of
businesses as either retail or restaurant, depending on the specific operational
characteristics of the business. Therefore, there is no need to introduce markets as a new
use in the Town Code. The “miscellaneous commercial businesses” term included in the
resolution allowed the Town to be nimble in its regulatory approach to new businesses
PAGE 7 of 16 SUBJECT: Economic Recovery Code Amendments DATE: April 21, 2023
DISCUSSION (continued):
within the bar to restaurant spectrum during an unprecedented time. As the recovery
process continues, it is important that updated Town Code language continue to provide for
flexibility while recognizing and defining the variety of business models within the bar to
restaurant spectrum. Two examples of business types that do not fit into the framework of
the existing Town Code are tap/tasting rooms and specialty food retail. When these
business types pursue operation in the Town, they are often forced into a category that is
not consistent with their desired operational characteristics, which may limit where they
can be located and could require review by the Town Council.
Tap/Tasting Rooms
Tap/tasting rooms are a business model becoming more prevalent. A tap/tasting room
offers sampling and sales of alcoholic beverages for on- or off-site consumption, but does
not include the extended hours that are typical of a bar. Like a bar, food may be offered at
a tap/tasting room, but is not a requirement. Currently, this type of business would either
be classified as a bar or would need to incorporate food service infrastructure and staffing
into their business model to open as a restaurant in the Town. This new category provides
an opportunity to businesses that do not want to establish a kitchen to offer food and
operate as a restaurant and do not want to offer late night hours of operation characteristic
of a bar. Additionally, tap/tasting rooms typically provide a unique environment that may
focus on craft and high-quality alcoholic beverages and provide a social gathering place with
hours of operation not extending beyond 10:00 p.m. The limited hours of operation of a
tap/tasting room reduce noise and other impacts, making them compatible in more areas of
the Town. Lastly, the California Department of Alcoholic Beverage Control (ABC) requires
different licenses for a bar and a tap/tasting room. The proposed tap/tasting room category
recognizes the distinction in operational characteristics and the hours of operation between
them and a bar, which allows the Town to regulate the two uses independently.
To continue the support of the business community consistent with the strategic priority
and to provide increased flexibility and opportunity to new business types, staff proposes
amendments to the Town Code to define and provide a regulatory framework for
tap/tasting rooms. Tap/tasting rooms would be added to the restaurant categories for
parking in the downtown area and outside of the downtown area. Tap/tasting rooms would
also be added to the Table of Conditional Uses for the C-1, C-2, CH, and LM zones, and
assigned to the DRC. A new definition would be added for tap/tasting room and the
definition of bar would be simplified to reflect the rescinding of the Town’s Alcohol Policy in
2019.
• Tap/tasting room means an establishment operating within the hours of 10:00 a.m. and
10:00 p.m. devoted to the sampling and sale of alcoholic beverages for on- and/or off-
site consumption. Food service is not required.
PAGE 8 of 16 SUBJECT: Economic Recovery Code Amendments DATE: April 21, 2023
DISCUSSION (continued):
• Bar means a drinking place operating within the hours of 6:00 a.m. and 2:00 a.m. where
alcoholic beverages are served for on-site consumption. Food service is not required.
Below is a summary of the amendments to the Town Code necessary to carry out these
changes:
• Update the definition of bar to recognize the rescinding of the Town’s Alcohol Policy in
2019 (29.10.020);
• Add the definition of tap/tasting room (29.10.020);
• Add tap/tasting room to the required parking for restaurants [29.10.150 (b)(1) and
(c)(9)];
• Add tap/tasting room to the Table of Conditional Uses:
o Tap/tasting room would be allowed with an approved CUP in the C-1, C-2, CH, and
LM zones.
o Bars would continue to be allowed with an approved CUP only in the C-2 zone
(29.20.185); and
• Update the assignment of duties adding tap/tasting room to the DRC, consistent with
restaurants (29.20.745).
The impact of the proposed amendments to the Town Code regarding tap/tasting room
businesses are summarized in the table below.
Impact of Town Code Amendments on Restaurant, Bar, and Tap/Tasting Room
Zone Allowed with CUP Application Type, Fee Average Processing Time
Restaurant without
Alcohol
C-1, C-2, CH, LM, CM
(no change)
CUP by DRC: $5,794.02
(no change)
3 to 4 months
(no change)
Restaurant with
Alcohol
C-1, C-2, CH, LM
(no change)
CUP by DRC: $5,794.02
(no change)
3 to 4 months
(no change)
Bar C-2 (no change) CUP by Town Council:
$16,261.46 (no change)
4 to 6 months
(no change)
Tap/Tasting Room C-1, C-2, CH, LM CUP by DRC: $5,794.02 3 to 4 months
Specialty Retail and Specialty Food Retail
A specialty retail use is not a new business type to the Town. In fact, there are examples of
businesses throughout Town that are considered specialty retail uses. To date, the Town
Code has lacked a definition and regulatory framework specific to specialty retail uses, with
staff relying on an interpretation of information in different Town policy documents to
regulate the use. Currently, specialty retail businesses are considered walk-in and impulse
businesses that offer pre-packaged foods and beverages, but do not offer meals, and with
limited to no seating. While both restaurant and specialty retail businesses offer food
PAGE 9 of 16 SUBJECT: Economic Recovery Code Amendments DATE: April 21, 2023
DISCUSSION (continued):
products, the primary distinction between the two uses is that food and beverages must be
pre-prepared and may not be made-to-order to be considered a specialty retail use. Once a
business offers any items made to order, including coffee, bagels with condiments, ice
cream, etc., they are currently required to obtain a CUP for a restaurant use. Currently, a
specialty retail business is regulated as a retail use and may be approved over the counter.
Within the current framework, a specialty retail business is limited in what and how
products can be offered. Only pre-prepared food and beverages can be offered. This
limitation forces some businesses into a restaurant CUP process that may not warrant that
level of control. To increase flexibility within the retail food/restaurant space, staff
recommends incorporating the following definition to bridge the gap between the two
existing uses:
• Specialty food retail means businesses that are primarily walk-in and impulse businesses
that do not generally serve meals, but offer pre-packaged/pre-prepared foods and/or
made-to-order beverages and have limited to no seating. Examples include but are not
limited to, coffee/tea houses, donut shops, juice/smoothie bars, and ice cream/frozen
yogurt shops.
This definition creates a use between retail and restaurant that allows for a business to
offer pre-prepared food items and made-to-order beverages while not being classified as a
restaurant. Staff proposes amendments to the Town Code to define and provide a
regulatory framework for a specialty food retail use. The new definition would be added to
the Town Code and the specialty food retail use would be allowed as a permitted use in the
C-1, C-2, CH, and LM zones, where retail uses are also a permitted use. However, approval
of a CUP would be required for a specialty food retail business offering alcohol for off-site or
on-site consumption along with the appropriate ABC license. The Table of Conditional Uses
would be updated accordingly. Below is a summary of the amendments to the Town Code
necessary to carry out these changes:
• Update the definition of convenience market to specifically exclude specialty food retail
(29.10.020);
• Add the definition of specialty food retail (29.10.020);
• Add specialty food retail to required parking for restaurants [29.10.150 (b)(1) and (c)(9)];
• Add specialty food retail to the Table of Conditional Uses for establishments selling
alcoholic beverages for consumption off-site or on-site (29.20.185);
• Update the assignment of duties adding specialty food retail uses offering alcoholic
beverages for consumption off-site or on-site to the DRC, consistent with restaurants
(29.20.745); and
• Add specialty food retail without alcoholic beverages as a permitted use in the C-1, C-2,
CH, and LM zones (29.60.210, 29.60.320, 29.60.420, and 29.70.100).
PAGE 10 of 16 SUBJECT: Economic Recovery Code Amendments DATE: April 21, 2023
DISCUSSION (continued):
The impact of the proposed amendments to the Town Code regarding specialty food retail
businesses are summarized in the table below.
Impact of Town Code Amendments on Specialty Food Retail Businesses
Current Code Amended Code
Frozen Yogurt Shop
Application Type, Fee CUP (restaurant) by DRC: $5,794.02
Use and Occupancy: $278.16
Business License: $75 to $975
Use and Occupancy: $278.16
Business License: $75 to $975
Average Processing Time 3 to 4 months Over the counter (typical)
Coffee House
Application Type, Fee CUP (restaurant) by DRC: $5,794.02
Use and Occupancy: $278.16
Business License: $75 to $975
Use and Occupancy: $278.16
Business License: $75 to $975
Average Processing Time 3 to 4 months Over the counter (typical)
Specialty Food Retail Shop Offering Alcohol for Off- Site or On-Site Consumption
Application Type, Fee CUP (restaurant) by DRC: $5,794.02
Use and Occupancy: $278.16
Business License: $75 to $975
CUP (specialty food retail with off-
site or on-site alcohol) by DRC:
$5,794.02
Use and Occupancy: $278.16
Business License: $75 to $975
Average Processing Time 3 to 4 months 3 to 4 months
C. Banks and Financial and Investment Services
The Town Code does not provide a definition of bank, but does require a CUP for banks in
the C-1, C-2, and CH zones. In 2020, an applicant requested a zoning consistency
determination and approval of a CUP for a bank in the C-2 zone. The proposed use did offer
some of the services traditional to banks, but also offered other financial and investment
services that are typically considered office uses. The Planning Commission determined the
use to be a bank and approved the CUP. This decision was appealed, and the Town Council
determined that the proposed use was not appropriate for the specific location, granting
the appeal and denying the application.
To clarify the distinction between a bank and a financial and investment services use, staff
proposes amendments to the Town Code. New definitions would be added for retail bank,
financial and investment services, and office activities. Existing regulations would continue
to determine the parking requirements for office activities and where they could be located
in the Town. The following new definitions would be added to the Town Code:
• Bank, retail means commercial and non-profit banks and credit unions, which are
primarily focused on in-person customer services such as: deposits/withdrawals, loans,
PAGE 11 of 16 SUBJECT: Economic Recovery Code Amendments DATE: April 21, 2023
DISCUSSION (continued):
checking and savings accounts, currency exchanges, mortgages, personal loans, and
debit or credit card services. This classification does not include payday lending
businesses or check cashing businesses. The term "payday lending business" as used
herein means retail businesses owned or operated by a "licensee" as that term is
defined in California Financial Code Section 23001(d), as amended from time to time.
The term "check cashing business" as used herein means a retail business owned or
operated by a "check casher" as that term is defined in California Civil Code Section
1789.31 as amended from time to time.
• Financial and investment services means businesses that offer financial advice and
services, including but not limited to: investment banking, portfolio management,
private equity, and venture capital.
• Office activities means office uses, including but not limited to: administrative,
professional, medical, dental, optical, real estate, insurance, financial and investment
services, and other similar office uses characterized by an absence of retail sales.
Below is a summary of the amendments to the Town Code necessary to carry out these
changes:
• Add the definitions of retail bank, financial and investment services, and office activities
(29.10.020);
• Add retail bank and financial and investment services to the required parking [29.10.150
(b)(2) and (c)(10)]; and
• Change “bank” to “retail bank” in the Table of Conditional Uses (29.20.185).
D. Formula Retail Greater than 6,000 Square Feet
The Town Code defines a formula retail business as a business which, along with seven or
more other business locations, is required by contractual or other arrangement to maintain
any of the following: standardized merchandise, services, décor, uniforms, architecture,
colors, signs, or other similar features. Under the current Town Code, formula retail
businesses up to 6,000 square feet are a permitted use in the C-1, C-2, CH, and LM zones.
Formula retail businesses greater than 6,000 square feet are a conditional use in the C-1, C-
2, CH, and LM zones and require Planning Commission approval.
To continue the support of the business community and to provide increased flexibility and
opportunity for businesses in the Town, staff proposes amendments to the Town Code to
allow formula retail businesses greater than 6,000 square feet as a permitted use in the C-1,
C-2, CH, and LM zones by eliminating the formula retail definitions and specific regulations.
With this change, a formula retail business as it is currently defined would simply be
considered a retail business and allowed where retail uses are allowed. This change would
not impact the requirement for an Architecture and Site approval for new construction of a
PAGE 12 of 16 SUBJECT: Economic Recovery Code Amendments DATE: April 21, 2023
DISCUSSION (continued):
commercial building. Below is a summary of the amendments to the Town Code necessary
to carry out these changes:
• Eliminate the definition of formula retail business (29.10.020);
• Eliminate the CUP requirement for formula retail businesses greater than 6,000 square
feet in the C-1, C-2, CH, and LM zones from the Table of Conditional Uses (29.20.185);
• Remove formula retail businesses greater than 6,000 square feet from the required
findings for granting a CUP [29.20.190 (b)];
• Remove formula retail businesses up to six thousand (6,000) square feet as a permitted
use in the C-1, C-2, CH, and LM zones (29.60.210, 29.60.320, 29.60.420, and 29.70.100).
The impact of the proposed amendments to the Town Code regarding formula retail
businesses are summarized in the table below.
Impact of Town Code Amendments on Formula Retail Businesses Greater than 6,000 sf
Current Code Amended Code
Application Type, Fee CUP: $9,098.64
Business License: $75 to $975
Use and Occupancy: $278.16
Business License: $75 to $975
Average Processing Time 3 to 6 months Over the counter (typical)
Deciding Body Planning Commission Community Development Director
Alternatively, the Planning Commission could consider maintaining the requirement for a
CUP for a formula retail business greater than 6,000 square feet in specific zones, but
change the deciding body from Planning Commission to DRC. Additionally, the Planning
Commission could consider whether specific, but not all, types of formula retailer greater
than 6,000 square feet should require a CUP in specific zones. One example of a specific
type is a use that might still require a CUP is one whose primary focus is on alcohol sales.
E. Group Classes in C-2 Zone
The Town Code defines group classes as a class that offers instruction provided at a rate
greater than one (1) student to one (1) instructor and does not include schools as defined in
the Town Code. Under the current Town Code, group classes are a permitted use in the O,
C-1, CH, and LM zones. Group classes require DRC approval of a CUP in the C-2 zone.
To continue the support of the business community and to provide increased flexibility and
opportunity for businesses in the Town, staff proposes amendments to the Town Code to
eliminate the requirement for a CUP for group classes in the C-2 zone, allowing it as a
permitted use. Below is a summary of the amendments to the Town Code necessary to
carry out these changes:
PAGE 13 of 16 SUBJECT: Economic Recovery Code Amendments DATE: April 21, 2023
DISCUSSION (continued):
• Eliminate the CUP requirement for group classes in the C-2 zone from the Table of
Conditional Uses (29.20.185);
• Eliminate group classes as an assigned duty for the DRC [29.20.745 (21)]; and
• Add group classes as a permitted use in the C-2 zone (29.60.085).
The impact of the proposed amendments to the Town Code regarding group classes
businesses are summarized in the table below.
Impact of Town Code Amendments on Group Classes Businesses
Current Code Amended Code
Application Type, Fee CUP: $9,098.64
Business License: $75 to $975
Use and Occupancy: $278.16
Business License: $75 to $975
Average Processing Time 3 to 6 months Over the counter (typical)
Deciding Body DRC Community Development Director
F. Veterinarians in C-1 Zone
Currently, the Town Code requires Planning Commission approval of a CUP for a
veterinarian (without a kennel) in the C-2, CH, LM, and CM zones. Veterinarians are not
allowed in the C-1 zone. Staff has received several inquiries recently related to commercial
properties in the C-1 zone, including locations on Los Gatos Boulevard, from parties
interested in establishing a new veterinarian business.
Staff proposes amendments to the Town Code to allow veterinarians (without a kennel) in
the C-1 zone with Planning Commission approval of a CUP, consistent with the other
commercial zones. Below is a summary of the amendments to the Town Code necessary to
carry out these changes:
• Amend the Table of Conditional Uses to allow veterinarians in the C-1 zone as a
conditional use (29.20.185).
PUBLIC COMMENTS:
Staff conducted outreach through the following media and social media resources, as well as
direct communication with the Chamber of Commerce and individual businesses and groups as
summarized below:
• The Town’s website home page, What’s New;
• The Town’s Facebook page;
• The Town’s Twitter account;
PAGE 14 of 16 SUBJECT: Economic Recovery Code Amendments DATE: April 21, 2023
PUBLIC COMMENTS (continued):
• The Town’s Instagram account;
• The Town’s NextDoor page;
• The Town’s Community Development Booth at the Town’s Spring Into Green Event on
Sunday, April 23, 2023;
• Direct communication with the Chamber of Commerce Executive Director and Board
Members; and
• Direct email communication to business stakeholders including property owners,
business owners, and property managers/brokers.
CEQA DETERMINATION:
In accordance with CEQA Guidelines Section 15378, these proposed ordinance amendments are
not a “project” subject to CEQA because the proposed amendments affect processing of
applications only and will not impact the physical environment. Individual projects processed in
accordance with the Town’s Zoning Code will undergo CEQA review.
CONCLUSION:
A. Summary
To continue Town support of local businesses, staff has identified several amendments to
the Town Code relative to land use and zoning consistent with the strategic priority that
promotes updates to Town policies and ordinances related to economic vitality and
pandemic recovery. The proposed amendments provide continued support through
increased flexibility and reduced process and cost.
B. Recommendation
Staff recommends that the Planning Commission review the information included in the
staff report and forward a recommendation to the Town Council for approval of the
amendments to Chapter 29 of the Town Code in the Draft Ordinance Amendments (Exhibit
2). The Planning Commission should also include any comments or recommended changes
to the Draft Ordinance in taking the following actions:
1. Make the finding that the proposed amendments to the Town Code are not considered
a project under the California Environmental Quality Act (Exhibit 1);
2. Make the required finding that the amendments to Chapter 29 of the Town Code in the
Draft Ordinance are consistent with the General Plan (Exhibit 1); and
3. Forward a recommendation to the Town Council for approval of the amendments to
Chapter 29 of the Town Code in the Draft Ordinance Amendments (Exhibit 2).
PAGE 15 of 16 SUBJECT: Economic Recovery Code Amendments DATE: April 21, 2023
CONCLUSION (continued):
C. Alternatives
Alternatively, the Commission can:
1. Forward a recommendation to the Town Council for approval of the Draft Ordinance
with modifications; or
2. Forward a recommendation to the Town Council for no changes to the Town Code; or
3. Continue the matter to a date certain with specific direction.
EXHIBITS:
1. Required Findings
2. Draft Ordinance Amendments
3. Strategic Priorities 2023 - 2025
4. Economic Vitality and Land Use Streamlining Information
5. Resolution 2020-008
6. Resolution 2022-066
7. Resolution 2023-011
8. C-2 Ground Floor Offices Map
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PLANNING COMMISSION – April 26, 2023 REQUIRED FINDINGS FOR:
Town Code Amendment Application A-23-001
Forward a Recommendation to the Town Council on Land Use and Economic Recovery
Amendments to Chapter 29 (Zoning Regulations) of the Town Code Regarding Personal Service
Businesses, Bars, Markets, Banks, Financial Services, Formula Retail, Group Classes,
Veterinarians, Offices, and Definitions.
FINDINGS
Required Findings for CEQA:
• In accordance with CEQA Guidelines Section 15378, these proposed ordinance amendments
are not a “project” subject to CEQA because the proposed amendments affect processing of
applications only and will not impact the physical environment. Individual projects
processed in accordance with the Town’s Zoning Code will undergo CEQA review.
Required Findings for General Plan:
• The proposed amendments to Chapter 29 of the Town Code regarding land use and
economic recovery are consistent with the General Plan.
EXHIBIT 1
N:\DEV\FINDINGS\2023\ECONOMIC RECOVERY CODE AMENDMENTS - PC - 04-26-23.DOCX
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Sec. 29.10.020. Definitions.
For the purposes of this chapter, the following words and phrases shall have the meanings
ascribed to them in this section unless the context clearly indicates otherwise:
…
Bank, retail means commercial and non-profit banks and credit unions, which are primarily
focused on in-person customer services such as: deposits/withdrawals, loans, checking and
savings accounts, currency exchanges, mortgages, personal loans, and debit or credit card
services. This classification does not include payday lending businesses or check cashing
businesses. The term "payday lending business" as used herein means retail businesses owned
or operated by a "licensee" as that term is defined in California Financial Code Section
23001(d), as amended from time to time. The term “check cashing business” as used herein
means a retail business owned or operated by a “check casher” as that term is defined in
California Civil Code Section 1789.31 as amended from time to time.
Bar means a drinking place operating within the hours of 6:00 a.m. and 2:00 a.m. where
alcoholic beverages and snacks are served for on-site consumption.; possibly with
entertainment such as music, television screens, video games or pool tables. Food service is not
required.
…
Convenience market means an activity that includes the retail sale of food, beverages, and
small personal convenience items, primarily for off-premises consumption and typically found
in establishments with long or late hours of operation and in a relatively small building; but
excluding delicatessens and other specialty food shops retail and also excluding establishments
which have a sizeable assortment of fresh fruits and vegetables and fresh-cut meat.
…
Financial and investment services means businesses that offer financial advice and services,
including but not limited to: investment banking, portfolio management, private equity, and
venture capital.
…
Formula retail business means a retail business which, along with seven (7) or more other
business locations, is required by contractual or other arrangement to maintain any of the
following: standardized merchandise, services, decor, uniforms, architecture, colors, signs or
other similar features.
…
Office activities means office uses, including but not limited to: administrative,
professional, medical, dental, optical, real estate, insurance, financial and investment services,
and other similar office uses characterized by an absence of retail sales.
…
EXHIBIT 2
Personal service business means uses that predominately sell personal convenience
services directly to the public, including but not limited to,: acupressure, barbers, beauty salons
and related services, cosmetologists, electrolysis, estheticians, facial and/or skin care, hair
dressers and/or hair stylists, hair removal and/or replacement, manicurists, massage therapists,
myofascial therapists, nail salons, pedicurists, permanent make-up, rolfers (therapists), skin and
body care, piercing, spas, tanning salons, tattooing, cleaners, dog grooming, tailors, and other
services of a similar nature. Personal service business does not include travel agencies,
insurance offices, law offices, architect offices, or any other type of office use.
…
Specialty food retail means businesses that are primarily walk-in and impulse businesses
that do not generally serve meals, but offer pre-packaged/pre-prepared foods and/or made-to-
order beverages and have limited to no seating. Examples include but are not limited to:
coffee/tea houses, donut shops, juice/smoothie bars, and ice cream/frozen yogurt shops.
…
Tap/tasting room means an establishment operating within the hours of 10:00 a.m. and
10:00 p.m. devoted to the sampling and sale of alcoholic beverages for on- and/or off-site
consumption. Food service is not required.
Sec. 29.10.150. Number of off-street spaces required.
(a) Intent. The regulations contained in this section are intended to ensure the provision of a
sufficient number of off-street parking spaces privately and publicly owned and operated
to satisfy needs generated by permissible uses.
(b) Parking requirements for downtown. In addition to other parking requirements, one visitor
parking space for each residential unit other than detached single-family or two-family
dwelling shall be required unless the Planning Commission makes a finding that more or
less visitor parking is necessary due to the size or type of housing unit(s). The parking
requirement for various uses in the downtown are as follows:
(1) Retail and commercial stores shops, personal service businesses, specialty food retail,
restaurants, bars, taverns and nightclubs, and tap/tasting rooms. One (1) parking
space for each three hundred (300) square feet of gross floor area.
(2) Business and professional offices, retail banks, financial institutions and investment
services, insurance companies, social service agencies and studios. One (1) parking
space for each two hundred fifty (250) square feet of gross floor area.
…
(c) Outside downtown parking requirements. The number of off-street parking spaces
required for areas outside the downtown is set in this subsection. When a use is not listed
in this subsection, the Planning Director shall determine the parking requirements by
analogy to the requirements for the listed uses. In addition to other parking requirements,
one visitor parking space for each residential unit other than a detached single-family or
two-family dwelling shall be required, unless the Planning Commission makes a finding
that more or less visitor parking is necessary due to the size or type of housing unit(s).
…
(9) Retail and commercial stores shops, personal service businesses, specialty food retail,
restaurants, bars, taverns and nightclubs, and tap/tasting rooms. One (1) parking
space for each two hundred thirty-five (235) square feet of gross floor area.
(10) Business and professional offices, retail banks, financial institutions and investment
services, insurance companies, social service agencies and studios. One (1) parking
space for each two hundred thirty-five (235) square feet of gross floor area.
…
Sec. 29.20.185. Table of conditional uses.
An "X" indicates that an activity is allowed in a zone if a conditional use permit is issued.
Activities listed in this table are only allowed where a conditional use permit is issued, or where
the activity is specifically listed in the permitted uses for the zone.
TABLE OF CONDITIONAL
USES
RC HR R1 RD R-
M
R-
1D
RMH O C-
1
C-
2
CH LM CM
(1) Commercial
a. Banks, retail X X X
b. Savings and loan
office Reserved
X X X
c. Drive-up
window for any
business
X X X
d. Supermarket X X X
e. Super drugstore X X X
f. Department
store
X X X
g. Shopping center X X X
h. Motel X X
i. Hotel X X
j. Restaurant
including those
with outdoor
dining areas or
takeout food
X X X X X
k. Establishment
selling alcoholic
beverages for
consumption on
premises
1.
In
conjunction
with a
restaurant
or specialty
food retail
use
X X X X
2.
Without
food service
(bar)
X
RC HR R1 RD R-
M
R-
1D
RMH O C-
1
C-
2
CH LM CM
3. Tap/tasting
room
X X X X
l. Establishment
selling alcoholic
beverages for
consumption
off-premises
(this provision
only applies to
establishments
commencing or
expanding off-
premises sales
after April 23,
1981)
X X X
1. In
conjunction
with a
specialty
food retail
use
X X X X
m.
Convenience
market
X X X
n. Reserved
o. Formula retail
business greater
than 6,000 s.f.
Reserved
X X X X
p. Personal service
businesses (as
set forth in
section
29.60.320)
Reserved
X
(4) Schools RC HR R1 RD R-
M
R-
1D
RMH O C-
1
C-
2
CH LM CM
h. Art, craft, music,
dancing school,
group classes
Reserved
X
(9) Agriculture and
Animal Services
RC HR R1 RD R-
M
R-
1D
RMH O C-
1
C-
2
CH LM CM
c. Veterinary
hospital
(without kennel)
X X X X X
Sec. 29.20.190. Findings and decision.
(a) The deciding body, on the basis of the evidence submitted at the hearing, may grant a
conditional use permit when specifically authorized by the provisions of this chapter if it
finds that:
(1) The proposed uses of the property are essential or desirable to the public
convenience or welfare;
(2) The proposed uses will not impair the integrity and character of the zone;
(3) The proposed uses would not be detrimental to public health, safety or general
welfare; and
(4) The proposed uses of the property are in harmony with the various elements or
objectives of the general plan and the purposes of this chapter.
(5) A hazardous waste facility proposal is subject to the California Health and Safety
Code, Article 8.7, Section 25199—25199.14 and shall be consistent with the Santa
Clara County Hazardous Waste Management Plan.
(b) Reserved. The deciding body, on the basis of the evidence submitted at the hearing, may
deny a conditional use permit for a formula retail business greater than six thousand
(6,000) square feet or a personal service business if any of the following findings are made:
(1) The proposed use of the property is not in harmony with specific provisions or
objectives of the general plan and the purposes of this chapter;
(2) The proposed use will detract from the existing balance and diversity of businesses in
the commercial district in which the use is proposed to be located;
(3) The proposed use would create an over-concentration of similar types of businesses,
or
(4) The proposed use will detract from the existing land use mix and high urban design
standards including uses that promote continuous pedestrian circulation and
economic vitality.
…
Sec. 29.20.745. Development Review Committee.
The Development Review Committee shall:
(1) Regularly review and make recommendations to the Planning Commission concerning
the determination of all matters which come before the Planning Commission except
zoning ordinance amendments, zone changes (not including rezoning to PD), general
plan adoptions and amendments, specific plan adoptions and amendments, and
capital improvement plans.
(2) Review and make recommendations to the Council concerning community-oriented
bulletin boards and kiosks proposed to be erected on public property.
(3) May on its own motion review and make recommendations concerning matters not
assigned to it.
(4) Reserved.
(5) Determine and issue zoning approval for the storage of hazardous materials as
provided in division 1 of article VII of this chapter.
(6) Determine appropriate screening (fencing, landscaping or a combination) for
hazardous materials storage sites as provided in division 1 of article VII of this
chapter.
(7) Determine and issue zoning approval for grading permits as provided in section
29.10.09045(b) and (c) of this chapter.
(8) Reserved.
(9) Determine and issue zoning approval for lot line adjustments and lot mergers.
(10) Reserved.
(11) Under the provisions of section 29.10.070 of this chapter and section 66424.2 of the
Subdivision Map Act, determine whether lots have merged.
(12) Determine and issue zoning approval for single-family dwellings.
(13) Determine and issue zoning approval for minor subdivisions of land consisting of four
lots or less.
(14) Determine and issue zoning approval for minor modifications to Planned
Developments when the Official Development Plan is not altered.
(15) Determine and issue zoning approval for requests for reduction to setbacks on
nonconforming lots.
(16) Determine and issue zoning approval for restaurants, specialty food retail use selling
alcoholic beverages for consumption off-site or on-site, and tap/tasting rooms.
(17) May refer any matter assigned by ordinance to the Development Review Committee
for decision to the Planning Commission for decision.
(18) Determine and issue zoning approval for special parking lot surfaces for nurseries or
botanical gardens under subsection 29.10.155(1).
(19) Determines requests for reasonable accommodation when action is not required of
the Council, Planning Commission or the Planning Director.
(20) Determines applications for demolition, conversion, and removal of accessory
dwelling units.
(21) Determine and issue zoning approval for group classes in the C-2 zone. Reserved.
No Planning Commission action is invalid because of omission of review and
recommendation.
Sec. 29.60.085. Permitted uses.
Activities allowed in the O or office zone must be those which would not unreasonably
interfere with residential uses or other activities within the O zone, and which are in the
following categories:
(1) Offices, administrative, professional, medical, dental and optical laboratories
associated with a professional use, real estate, insurance, stocks and bonds; and other
similar offices characterized by absence of retail sales.
(2) Retail sales by a pharmacy within a medical building.
(3) Group classes.
(4) Personal service businesses.
(Ord. No. 1316, § 4.52.020, 6-7-76; Ord. No. 1363, 8-1-77; Ord. No. 2304 , § II, 2-18-20)
Sec. 29.60.210. Permitted uses.
(a) Activities allowed in the C-1 or neighborhood commercial zone are those which do not
unreasonably interfere with nearby residential uses and which are in the following
categories:
(1) Retailing up to six thousand (6,000) square feet.
(2) Personal service businesses and service businesses necessary for the conduct of
households.
(3) Office activities.
(4) Limited manufacturing activities when a majority of sales are made, on site, to the
ultimate consumer.
(5) Activities permitted in the LM zone which were approved on or before February 1,
1993 provided any change of use must be a conforming use in the C-1 zone.
(6) Group classes.
(7) Specialty food retail without alcoholic beverages.
(b) Examples of proper C-1 activities are grocery stores, launderettes, or dry cleaning
agencies, drugstores, barbershops, appliance repair shops, and offices. Examples of
activities which are not proper in the C-1 zone are vehicle service and sales, palmists and
soothsayers, manufacturing, wholesaling, or laundry.
(Ord. No. 1316, § 4.54.020, 6-7-76; Ord. No. 1363, 8-1-77; Ord. No. 1930, § I, 2-1-93; Ord. No.
2304 , § II, 2-18-20)
Sec. 29.60.320. Permitted uses.
(a) Activities permitted in the C-2 or Central District Commercial Zone are those involving the
conduct of commerce and general business and the sale of commodities necessary for the
needs of residents and visitors of the Town, such as:
(1) Retailing, including formula retail up to six thousand (6,000) square feet.
(2) Reserved.
(3) Reserved.
(4) Office activities subject to subsection (c) below.
(5) Limited manufacturing activities when a majority of sales are made, on site, to the
ultimate consumer.
(6) Wholesaling without warehousing on the premises.
(7) Single-family and two-family uses, in conjunction with the other uses permitted in this
section.
(8) Personal service businesses.
(9) Group classes.
(10) Specialty food retail without alcoholic beverages.
(b) Examples of proper C-2 activities are apparel stores, antique stores, artist studios, craft
studios, auto part sales, artist supply shops, and EV sales, service, and repair. Examples of
activities which are not proper in the C-2 zone are vehicle sales or service, manufacturing,
warehousing, laundry or dry cleaning plants.
(c) Personal service businesses and office activities in the C-2 zone are subject to the
following: Office activities in the C-2 zone shall not be located on the ground floor along
any street, alleyway, or public parking lot except in the areas described below:
(1) Personal service businesses may be allowed on the ground floor in the C-2 zone with a
conditional use permit. However, personal service businesses are considered a
permitted use in the areas described in subsection (2)a—g below and in the
remainder of the C-2 zone.
(2) Office activities in the C-2 zone shall not be located on the ground floor along any
street, alleyway, or public parking lot except in the areas described below:
a.(1) Lyndon Avenue;
b.(2) Properties abutting Wood Road;
c.(3) The west side of Victory Lane:
d.(4) The south side of Los-Gatos-Saratoga Road excluding:
ia. That portion of the property located at the southwest corner of Los-Gatos
Saratoga Road and Santa Cruz Avenue described more precisely as located
between a straight line extended northerly along the west side right-of-way
line of Santa Cruz Avenue and one hundred forty (140) feet west of that
extended line.
iib. The south side of Los Gatos-Saratoga Road between Santa Cruz Avenue and
University Avenue; and
e.(5) The east side of South Santa Cruz Avenue directly across the street from Wood
Road.
f.(6) The north and south side of West Main Street west of Victory Lane.
g.(7) Tenant suites located at 114 Royce Street with entries at the rear of the building
and that do not have street frontage.
(2d) Notwithstanding subsection (c)(2), office activities on ground floors described below shall
be considered conforming and shall be allowed to continue so long as the office use is not
discontinued for one hundred and eighty (180) consecutive days. If the office use is
discontinued for such a period, then the office use shall not be resumed, and token use
shall not toll or interrupt a period of discontinuance.
a. Office activities existing on June 17, 1991; or
b. Office activities in a building under construction on July 16, 1990, if the applicable
architecture and site approval specifically stated that the building was approved for
office activities.
Sec. 29.60.420. Permitted uses.
(a) Activities allowed in the CH or restricted highway commercial zone are those which do not
unreasonably interfere with nearby residential uses and which are in the following
categories:
(1) Retailing, including formula retail up to six thousand (6,000) square feet.
(2) Personal service businesses and service businesses necessary for the conduct of
households.
(3) Office activities.
(4) Limited manufacturing activities when a majority of sales are made on site to the
ultimate consumer.
(5) Group classes.
(6) Specialty food retail without alcoholic beverages.
(b) Examples of proper CH activities are grocery stores, launderettes or dry-cleaning agencies,
drugstores, barbershops, appliance repair shops, and offices. Examples of activities which
are not proper in the CH zone are palmists and soothsayers, manufacturing, wholesaling,
or laundry or dry-cleaning plants.
Sec. 29.70.100. Permitted uses.
(a) Activities allowed in the LM or commercial-industrial zone are those service-oriented and
light industrial uses which may be inappropriate in a general commercial zone and which
are in the following categories:
(1) Retailing, including formula retail up to six thousand (6,000) square feet.
(2) Personal service businesses.
(3) Service businesses necessary for the conduct of households or businesses.
(4) Office activities approved on or before July 1, 1982; provided, that no change of use
to office shall be permitted in the LM zone.
(5) Limited manufacturing.
(6) Wholesaling and warehousing.
(7) Group classes.
(8) Specialty food retail without alcoholic beverages.
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Prudent Financial Management
Quality Of LifE
Traffic/Transportation
Safety
Address Pension & OPEB Obligations
Sell or Lease Certain Town Properties
Develop a Five-Year Structurally Balanced
and Sustainable Operating Forecast
Explore New Revenue Opportunities
Cure Forecasted Structural Deficit
Develop a Five-Year Full Funded Capital Plan
Community Vitality
Diversity, Equity & Inclusion Efforts
Community Where Older Adults Thrive
Adopt a Senior Road Map
Events & Other Town-Wide Efforts
Community Engagement
Environmental Sustainability/Climate Resiliency
Economic Vitality & Pandemic Recovery
Policies & Ordinances
Semi-Permanent Parklets
Streamline Permit Process
Land Use Planning
General Plan 2040
Housing Element
Affordable Housing Partnerships
SB9 Implementation
Work with Town Partners to Support Needs of
Unhoused Residents
Redefine Town Commissions in Alignment with
Strategic Priorities
Comprehensive Parking Study
Short, Medium, and Long-Term Actions
Transportation Demand Management
Measure B Transportation Projects
Bicycle & Pedestrian Improvements
Community Shuttle
Summer/Rush Hour/School Traffic
Regional Transportation Issues
Traffic Calming/Safety for All Users
Community Policing
Emergency Preparedness
CERT Recruitment & Training
Communications, EOC Readiness &
Emergency Plan Development
Fire Protection
Implementation of Ad Hoc Wildfire
Mitigation Plan
Vegetation and Hazardous Tree
Management
Ongoing Strategic Priorities
2023-2025
EXHIBIT 3
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ECONOMIC VITALITY & LAND USE STREAMLINING
The Town of Los Gatos is proud to be the home of a variety of premium shopping and
dining experiences. Our downtown is one of the most charming and beautiful places
around, while Los Gatos Boulevard and surrounding shopping centers provide
neighborhood convenience and other fantastic shopping, dining, and service
businesses against the back drop of the picturesque foothills. The Town Council is
committed to creating opportunities for existing and new businesses to thrive
throughout Los Gatos, and as a result have adopted a strategic priority to continue to
support our business community through streamlining processes, policies, and
ordinances.
The list below highlights much of the work that has been completed to date, and we will continue to make
strides in creating an environment that allows our business community to continue to be the very best. Please
click on any of the items below to learn more about what was adopted:
•Flexible outdoor seating regulations on public and private property (9/1/15, Town Council Meeting, Item
11)
•Allowance for paid private Downtown valet parking (11/3/15, Town Council Meeting, Item 13)
•Allowance for entertainment by right before 10 P.M. and late-night entertainment with a permit
(6/21/16, Town Council Meeting, Item 19)
•Significantly reducing the Traffic Impact Fees that are applied to existing commercial space in Downtown
and Shopping Centers (11/17/16 and 2/16/17, Policy Committee Meetings)
•Providing flexible seating calculations for restaurants guided by Maximum Fire Occupancy (3/20/18,
Town Council Meeting, Item 9)
•Rescission of the Town’s Alcohol Beverage Policy acknowledging that ample vetting and oversight is
provided through the State of California’s Alcohol Beverage Control (4/3/18, Town Council Meeting, Item
8)
•Resolution for a limited time suspending the Conditional Use Permit requirement for Formula Retailers
in Downtown (6/5/18, Town Council Meeting, Item 18)
•Resolution for a limited time allowing restaurants to modify their Conditional Use Permits at the
Development Review Committee level significantly reducing the time and cost related to a CUP
modification (6/19/18, Town Council Meeting, Item 19)
•Elimination of parking time limits in public parking lots Downtown on Saturdays (11/6/18, Town Council
Meeting, Item 8)
•Approval for a one-way street pilot on N. Santa Cruz Avenue for the Summer and Fall of 2019, offering
more on street parking and greater opportunities for parklets and bike and pedestrian traffic (1/15/19,
Town Council Meeting, Item 5)
•Approval of a pilot program to allow parklets, also known as sidewalk cafes, on Main Street
and N. Santa Cruz Avenue (2/5/19, Town Council Meeting, Item 11)
•Resolution for a limited time suspending Ordinance 2021, and allowing new restaurants to obtain a CUP
at the DRC level until, and a resolution allowing for minor exterior modifications to commercial buildings
to be processed at building permit 12/31/19 (3/5/19, Town Council Meeting, Item 7)
•Resolution for a limited time allowing group classes without a CUP in commercial zones outside of
downtown, and those within downtown to obtain a CUP at the DRC level. (3/19/19, Town Council
Meeting, Item 11)
EXHIBIT 4
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EXHIBIT 5
WHEREAS, the Town Council does hereby find that the above described conditions of
extreme peril did warrant and necessitate the proclamation of the existence of a local
emergency in the Town; and
WHEREAS, California Government Code, Title 2, Division 1, Chapter 7.5 - California Disaster
Assistance Act (CDAA) allows that with the Proclamation of a Local Emergency the Town may
seek financial assistance and may request reimbursement of expenses incurred during any
response, if approved by the Director of the California Office of Emergency Services or
Concurrence or Governor's Proclamation; and
WHEREAS, on March 12, 2020, the Director of Emergency Services issued a proclamation
declaring the existence of a local emergency within the Town; and
WHEREAS, the associated emergency conditions are on -going and the emergency should
not be terminated at this time;
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
THAT:
1. The Proclamation of Existence of a Local Emergency (Exhibit A), as issued by the Director
of Emergency Services on March 12, 2020, is hereby ratified and confirmed.
2. The Town Council has reviewed the need for continuing the declaration of local
emergency and finds based on substantial threat of continued community spread that
the public interest and necessity require the continuance of the proclamation of local
emergency related to COVID-19.
3. Said local emergency shall be deemed to continue to exist until terminated by the Town
Council of the Town of Los Gatos.
4. The Director of the Office of Emergency Services is hereby directed to report to the
Town Council within sixty (60) days on the need for further continuing the local
emergency.
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Resolution 2020-008 March 17, 2020
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos,
California, held on the 17' day of March 2020, by the following vote:
COUNCIL MEMBERS:
AYES: Rob Rennie, Marico Sayoc, Barbara Spector, Mayor Marcia Jensen
NAYS: None
ABSENT: None
ABSTAIN: None
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE:
ATTEST:
A\C
TOWN CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: a IQ OECD
3of3
Resolution 2020-008 March 17, 2020
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EXHIBIT 6
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EXHIBIT 7
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O
N
A
V
W
O
O
D
R
D
CLELAND AV
DITTOS LN
AL
M
E
N
D
R
A
A
V
WRAIGHT AVTOWNE
T
E
WOODLA
N
D A
V
PARK AVCHESTE
R
S
T
BAYVIEW AVELM
S
T
CHURCH STMONTEREY AVBIRD AVS SANTA CRUZ AVBOYE
R
L
NBELMONT AVELL
E
N
W
O
O
D
A
V
GRA
Y
S
L
N
ROY
C
E
S
T AVERY LNLO
S
G
A
T
O
S
-
S
A
R
A
T
O
G
A
R
D
STATION WYVILLAGE LNKIMBLE AVPAGEANT WYPE
N
N
S
Y
L
V
A
N
I
A
A
V
MILL
ST
MUL
L
E
N
A
V
MAPLE LNLUNDY LNHIGHWAY 17NB 17 TO S SANTA CRUZHIGH SCHOOL CTSAN BENITO AVBA
C
H
M
A
N
C
T
BENT
L
E
Y
A
VBELMONT CTMONTEBELLO WYMASSOL CTALEXANDER CTWHERE OFFICE USES CAN BE LOCATED ON
THE GROUND FLOOR IN THE C-2 ZONE PERTOWN CODE SECTION 29.60.320 (c).
OFFICE USES ALLOWED ON THEGROUND FLOOR
OFFICE USES NOT ALLOWED ON THEGROUND FLOOR UNLESS AN OFFICEUSE HAS EXISTED CONTINUOUSLYSINCE JULY 17, 1991 (SEE SECTION29.60.320 (c)(2) FOR FULL EXPLANATION
OF EXEMPTION)
EXHIBIT 8
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