Item 16 Staff Report Personal Service Business Work PlanMEETING DATE: 12/1 /03
ITEM NO.
COUNCIL AGENDA REPORT
DATE: NOVEMBER 20, 2003
TO: MAYOR AND TOWN COUNCIL
FROM: DEBRA J. FIGONE, TOWN MANAGER
SUBJECT: PERSONAL SERVICE BUSINESS WORK PLAN
RECOMMENDATION:
(c)
That the Council provide direction to staff regarding the proposed Personal Service Business Work
Plan
BACKGROUND:
At its meeting of September 2, 2003, the Town Council adopted an Urgency Ordinance to establish
a temporary prohibition on personal service businesses locating on the ground floor in the C-2
Central Business District Commercial Zone. The Council allowed pending applications for personal
service businesses to continue to be processed. The Council also directed staff to study the personal
service business issue and develop recommendations regarding potential changes to the C-2 zoning
regulations.
Staff has since formulated an in-house Work Plan. This Work Plan encompassed two key elements.
First, staff is contacting other cities to get copies of their regulations regarding personal service
businesses. From this information, staff will be able to get ideas for alternatives to regulate personal
service businesses in downtown Los Gatos.
The second part of the Work Plan involves surveying the entire downtown and plotting on a map
all of the personal service businesses in the C-2 zoning district. Personal service businesses will
be broken out by hair/nail salons, spas and other personal service uses such as cleaners. The
mapping of the personal service uses in the downtown will be useful in determining if there are
concentrations of personal service uses in certain areas that might be of concern.
PREPARED BY: Bud N. Lort , Di for of Community Development
•
Reviewed by: _ Assistant Town Manager OY/Attorney Clerk_l Finance
/ Community Development Revised: 11/24/03 11:32 am
Reformatted: 5/30/02
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: PERSONAL SERVICE BUSINESS WORK PLAN
November 20, 2003
Once the ordinances from other cities are reviewed and the plotting of downtown personal service
businesses completed, staff will analyze the data and prepare a report for Council that contains a
number of alternatives for regulating personal service businesses. Alternatives to consider may
include, but are not limited to, requiring a CUP for all new personal service uses, differentiation
between different types of personal service uses, spacing requirements, phasing out of uses over time
and others. It is expected that such alternatives will be presented to the Council in February or
March, 2004. This work is being completed in-house, without consultant assistance.
DISCUSSION
At its meeting of November 12, 2003, staff presented the aforementioned Work Plan to the General
Plan Committee. The General Plan Committee was of the opinion that the in-house Work Plan as
proposed by staff would provide adequate information for staff to develop a series of alternatives for
Council consideration. Staff is looking for direction from Council at this time regarding the adequacy
of the proposed Work Plan and if additional research and analysis is desired.
ENVIRONMENTAL ASSESSMENT:
Is not a project defined under CEQA, and no further action is required.
FISCAL IMPACT:
No direct fiscal impact.
Attachments:
1. Urgency Interim Ordinance extending moratorium on personal service businesses located on
the ground floor in the C2 Central Business District Commercial Zone.
2. Personal Service Business Work Plan
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ORDINANCE 2118
AN URGENCY INTERIM ORDINANCE EXTENDING MORATORIUM
ON PERSONAL SERVICE BUSINESSES LOCATED ON THE GROUND FLOOR IN THE
C2 CENTRAL BUSINESS DISTRICT COMMERCIAL ZONE.
WHEREAS, Government Code § 65858 allows a legislative body, without following the procedures
otherwise required prior to the adoption of a zoning ordinance, to adopt, as a urgency measure, an interim
ordinance prohibiting any uses which may be in conflict with a contemplated general plan, specific plan, or
zoning proposal which the legislative body, planning commission or planning department is intending to
study within a reasonable time; and
WHEREAS, the zoning provisions of the Los Gatos Town Code does not provide a definition of
"Personal Service Business" nor does it contain adequate procedures for investigating and addressing the
impacts of a new Personal Service Businesses in the central business district; and
WHEREAS, applications have been received by the Town for approval of two new Personal Service
Businesses in the central business district, and inquiries have been made of Town staff in anticipation of a
third such application; and
WHEREAS, concerns have been raised in the community regarding potential detrimental impacts
of additional Personal Service Businesses in the central business district, including but not Iimited to,
location, parking, traffic circulation, and land use mix; and
WHEREAS, concerns have also been expressed that decisions regarding applications for new
Personal Service Businesses should consider the importance of a balanced mix of land uses throughout the
central business district; and
WHEREAS, the Town does not have complete and comprehensible information analyzing the
current business environment of the central business district, describing the total number, type and mix of
businesses located therein or the trend of applications for types of businesses, including Personal Service
Page 1 of 5
Attachment 1
Businesses; and
WHEREAS, absent comprehensive regulations and a current analysis of the central business district,
the Town is unable to ensure informed, consistent, uniform and fair decisions on applications for new
Personal Service Businesses in the central business district; and
WHEREAS, the Town Council has directed the Town Department of Community Development to
evaluate and make recommendations to the Planning Commission and the Town Council regarding the
necessity and potential form of regulation of Personal Service Businesses in the central business district; and
WHEREAS, approval of applications for new Personal Service Businesses during the time Town
staff is studying the business environment and the value of imposing regulations on such businesses in the
central business district could result in conflicts with any regulations that might ultimately be adopted, and
WHEREAS, since September 2, 2003 when the moratorium on personal service businesses was
established, staff began a survey of other city regulations and prepared a work plan for developing personal
service regulations.
THE TOWN COUNCIL OF THE TOWN OF LOS GATOS ORDAINS AS FOLLOWS:
1. Interim Ordinance. During the term of this Interim Ordinance, no building or zoning
applications for permits for Personal Service Businesses located on the ground floor in the C-2 central
business district commercial zone received by the Town after August 29, 2003, or has executed a lease by
or before August 29, 2003 for locations which Personal Service Businesses would operate, shall be approved
by the Town.
2. Findings.
a. The Town of Los Gatos has long been recognized as having a unique downtown
business environment with an unusual mix of business that distinguishes it from other retail areas and has
contributed to its long time vibrancy and financial success.
Page 2 of 5
b. The Town's General Plan contains numerous goals, policies and implementing
strategies intended to preserve its unique retail environment. For example, the land use designation CBD for
central business district (2.4.2) is described as "[encouraging] a mixture of community -oriented commercial
goods, services and lodging, that is unique in its accommodation of small town style merchants and the
maintenance of a small town feel and character." Elsewhere, concerning the historic downtown area, is a goal
to maintain mixture of goods and services, identity, environment and commercial viability (LG.6.2) and a
policy to "[e]ncourage the development and retention of small business and locally -owned stores and shops
that are consistent with small town character and scale." (L.P.6.2)
c. The Town does not have complete and comprehensible information analyzing the
current business environment of the central business district, describing the total number, type and mix of
businesses located therein, or the trend of applications for types of businesses, including Personal Service
Businesses.
d. While the precise number of Personal Service Businesses in the central business
district has yet to be determined, an initial review of Town business license information indicates that in
calendar year 2001 approximately 35 locations in the central business district were used for Personal Services
Business, that the number increased slightly to 37 locations in calendar year 2002, and that thus far in
calendar year 2003 the number has increased to approximately 40 locations. These include hair salons, barber
shops, nail salons and day spas.
e. A nationwide economic recession has reduced demand for many retail goods resulting
in retail business failures and increasing retail space vacancies in the central business district.
f. Within the 30 to 60 day period preceding this ordinance, applications have been
received by the Town seeking permits for two new Personal Service Businesses in the central business district
and inquiries have been made of Town staff in anticipation of a third such application.
Page 3 of 5
g.
While the total number of Personal Service Businesses may vary upon completion of
a more detailed survey, the preliminary information referred to herein, coupled with the pending and
anticipated applications for more such businesses, suggests the existence of a large and rapidly increasing
number of businesses in the central business district specializing in hair, nails and skin care and a trend of
vacant retail spaces converting to personal service uses.
h. An increase in the existing number of Personal Service Businesses in the central
business district potentially threatens the Town's unique downtown retail environment in a number of ways,
including, but not limited to, an over concentration of Personal Service Businesses that can take over existing
retail spaces, may reduce the attractiveness of the central business district to retail consumers and to new
retail businesses alike, and ultimately may limit the ability of the central business district to successfully
compete with other business districts in the region.
i. For the reasons stated herein, the issuance of building or zoning permits for new
Personal Service Businesses located on the ground floor in the central business district commercial zone
during the term of this Interim Ordinance poses a current and immediate threat to public health, safety and
welfare.
J.
The Town Department of Community Development has been directed to evaluate and
make recommendations to the Planning Commission and the Town Council regarding the necessity and
potential form of regulation of Personal Service Businesses in the central business district.
k. Approval of applications for building or zoning permits for Personal Service
Businesses may be in conflict with the regulations to be analyzed and adopted by the Town and would
undermine the purpose of studying such regulation, thereby reducing the quality of life within the community
to the extent the overall public health, safety and welfare are detrimentally affected.
Page 4 of 5
3. Term. This Interim Ordinance shall expire August 1, 2004, unless extended by Town Council
pursuant to Government Code § 65858.
4 Report. At least 10 days prior to expiration of this Interim Ordinance, the Town Council shall
issue a written report pursuant to Government Code § 65858 (d) describing the measures taken to alleviate
the conditions which have led to the adoption of this Interim Ordinance.
5. Severability. If any part of this Interim Ordinance is held to be invalid or inapplicable to any
situation by a court of competent jurisdiction, such decision shall not affect the validity of the remaining
portions of this Interim Ordinance or the applicability of this Interim Ordinance to other situations.
6. Posting. Within 15 days after its passage, the Town Clerk shall cause this Interim Ordinance
to be published once in a newspaper of general circulation published and circulated in the Town and posted
in at least three public places within the Town.
This Interim Ordinance was passed and adopted at a regular meeting of the Town Council of the Town
of Los Gatos on October 6, 2003, and adopted by at least a four -fifths (4/5) vote of the Town Council as
follows:
COUNCIL MEMBERS:
AYES: Steve Glickman, Joe Pirzynski, Mike Wasserman,
Sanay Decker.
NAYS: Diane McNutt
ABSENT: None
ABSTAIN: None
SIGNED: /s/ Sandy Decker
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
/s/ Marian V. Cosgrove
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
Page 5 of 5
Dec./Jan:
PERSONAL SERVICE BUSINESS IN THE DOWNTOWN
WORK PLAN - DECEMBER - 2003
Research from other cities: Contact other cities to get copies of their zoning
regulations in the downtown zone as well as definition of Personal Service
Businesses. (Cities with similar downtowns to Los Gatos should be a priority -
Los Altos, Mt. View, Palo Alto, Morgan Hill, Carmel, Napa, Saratoga, Monterey,
Santa Cruz, Calistoga, Walnut Creek, Sausalito, Petaluma)
Downtown Los Gatos research/mapping:
• name and address of each personal service use in downtown (including
salons, spas, dry cleaners, etc.)
• create a map of the downtown showing each personal service use
highlighted (the intent is to look for concentrations of personal service
uses and possible areas to restrict)
Feb.//Mar: Review ordinances from other cities and mapping of businesses in the downtown
and develop recommendations regarding personal service uses. Possible
recommendations could include:
• Allow to continue as currently allowed by zoning code
• Require a CUP for any new personal service use
• Prohibit additional personal service uses on ground floor spaces in certain
areas of the C-2 or in all areas of the C-2
• Require certain spacing requirements between personal service uses and
only allow new ones if they meet this requirement (e.g. 300ft between
personal service uses)
Create definition of personal service uses - could separate out "Personal
Grooming Uses" and "Personal Service".
April: Prepare recommendations for consideration by the Planning Commission
May: Town Council consideration of recommendations
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Attachment 2
Town Council Minutes December 1, 2003
Redevelopment Agency
PUBLIC HEARING CONTINUED
Los Gatos, California
RESERVOIR ROAD/REMOVAL OF RESERVOIR/SAN JOSE WATER/APPEAL CONT.
Mayor Glickman noted that this item had been continued from August 18, 2003 and November 17,
2003 and that staff recommends that it be continued again to December 1, 2003. He asked if there was
anyone in the audience who wished to speak to this issue.
Eric Morely, representing San Jose Water, spoke of dialogue with the neighborhood and would prefer
to continue the hearing in its entirety for two weeks rather than holding a segmented hearing.
Motion by Mr. Wasserman, seconded by Ms McNutt, to continue this Public Hearing to December
15, 2003. Carried unanimously.
OTHER BUSINESS
ATTENDANCE REQUIREMENTSBOARDS AND COMMISSIONS/RESOLUTION 2003-136 (14A.12)
Motion by Ms McNutt, seconded by Mrs. Decker, that Council adopt Resolution 2003-136 entitled,
RESOLUTION OF THE TOWN OF LOS GATOS REPLACING RESOLUTION 1988-173 AND
ESTABLISHING ATTENDANCE REQUIREMENTS FOR MEMBERS OF ALL TOWN
COMMISSIONS, COMMITTEES, AND BOARDS, EXCEPT THE PLANNING COMMISSION.
Carried unanimously.
ATTENDANCE REQUIREMENTS/PLANNING COMMISSION/RESOLUTION 2003-137 (14B.12)
Motion by Ms McNutt, seconded by Mrs. Decker, that Council adopt Resolution 2003-137 entitled,
RESOLUTION OF THE TOWN OF LOS GATOS RESCINDING RESOLUTION 1988-173
AND ESTABLISHING ATTENDANCE REQUIREMENTS FOR MEMBERS OF THE TOWN
PLANNING COMMISSION, with amendment to Item #3 allowing eight (8) absences from regular
scheduled meetings in a years' time rather than the five (5) reflected in the staff report. Carried by a
vote of 3 ayes. Mr. Glickman and Mr. Pirzynski voted no believing that the staff report and analysis
accurately stated the need for more consistent attendance while serving on the Planning Commission.
MUSIC IN THE PLAZA/GUIDELINES/RESOLUTION 2003-138 (15.33)
Motion by Mrs. Decker, seconded by Mr. Wasserman, that Council adopt Resolution 2003-138
entitled, RESOLUTION OF THE TOWN OF LOS GATOS RESCINDING RESOLUTION
1997-126, "RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
ADOPTING MUSIC IN THE PLAZA GUIDLINES." Carried unanimously.
PERSONAL SERVICE BUSINESS WORK PLAN REPORT (16.37)
Bud Lortz, Community Development Director, reported on the development of this issue and the steps
that have been taken to address the subject. At the regular Council meeting of September 2, 2003
Council adopted an Urgency Ordinance forbidding personal service businesses to locate on the ground
floor in the C-2 Central Business District Commercial Zone and allowing for study and analysis of this
subject so as to develop recommendations regarding possible changes to the C-2 zoning regulations.
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Town Council Minutes December 1, 2003
Redevelopment Agency Los Gatos, California
PERSONAL SERVICE BUSINESS WORK PLAN REPORT CONTINUED (16.37)
Bud Lortz, Community Development Director, Continued:
Staff has since formulated an in-house Work Plan and presented it to the General Plan Committee. The
Committee believes the plan would provide adequate information for staff to develop a series of
alternatives for Council's consideration.
Council Comments:
Implement a survey of personal use businesses in downtown ground floor store front property.
While survey is proceeding, evaluate mechanisms that could be implemented in the future to extend the
base of information to reflect other use and square footage.
Keep survey small and centered.
Evaluate what information could be provided through business license renewal process.
Provide information through new GIS system data base to develop a data base for future use.
If CUP is granted, incorporate data into GIS system data base for future use.
Council will be able to process this information using its intuition and its own assumptions so as to be
able to maintain and develop some measure of control over the mix of businesses in the downtown.
Staff noted that there was sufficient information and direction to proceed with the Work Plan.
COUNCIL MATTERS (17.28)
Verbal Update on SVACA:
Mayor Glickman spoke of the past history of working with SVACA and the latest proposals on the
table which are a Reduced Equity Participation of Saratoga, Cupertino and Los Gatos with Campbell,
Monte Sereno and Santa Clara baring the largest share; and the possibility that we could simply contract
with SVACA for the services we wish to purchase. The other question is the purchase of land for the
facilities. This is ongoing at this time and further updates may be available December 15th and Jan 5th.
MANAGER MATTERS (18.28)
Green Building Techniques (Solar Design):
Bud Lortz, Community Development Director, gave an update on the Solar Design Guidelines. He
spoke of the Green Building Techniques, Energy Efficient Construction and the LEED Program that
deals with the certification of buildings and their environmental status. He spoke of the public
presentation for the General Plan Committee on Energy Technology and regulations regarding energy
efficient design which will be held Wednesday, December loth at 5:00 p.m.
ADJOURNMENT
Mayor Glickman closed this evening's meeting at 8:38 p.m.
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ATTEST:
Marian V. Cosgrove, Town Clerk
5