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Attachment 1TOWN OF LOS GATOS PLANNING COMMISSION STAFF REPORT Meeting Date: January 13, 2016 PREPARED BY: APPLICATION NO: LOCATION: APPLICANT: APPLICATION SUMMARY: RECOMMENDATION: CEQA: FINDINGS: Monica Renn, Economic Vitality Manager mrenn@losgatosca.gov Town Code Amendment Application A-15-005 Town Wide Town of Los Gatos ITEM NO: 5 Consider adoption of amendments to Section 29.10.150 of Chapter 29 (Zoning Regulations) of the Town Code to revise the parking requirements for restaurants. Forward to Town Council with a recommendation for adoption. It has been determined that there is no possibility that this project will have a significant impact on the environment; therefore, the project is not subject to the California Environmental Quality Act [Section 15061 (b)(3)]. The Planning Commission must make a finding that the Code amendments are consistent with the General Plan if the recommendation is for adoption. ACTION: Recommendation to Town Council. EXHIBITS: BACKGROUND: 1. December 15, 2015 Town Council Meeting Verbatim Minutes 2. December 15, 2015 Town Council Staff Report 3. December 15, 2015 Town Council Addendum Report 4. Draft Town Code Amendments In September 2015, the Council began looking at ways of streamlining and modernizing the Town's regulations on businesses in an effort to give them greater opportunities to expand or modify their business models to adapt to the changing demands in retail, dining, and other consumer behaviors. By allowing businesses more latitude, Los Gatos may remain a desirable location to own and operate successful businesses, ultimately increasing the Town's vitality. Planning Commission Staff Report - Page 2 Restaurant Parking Ordinance /A-15-005 January 13, 2016 At the December 15, 2015 Town Council meeting, the Council discussed changing the way the Town regulates seating capacities in restaurants. Currently, the Town Code allows seats in a restaurant based on the number of parking spaces, type of restaurant, and location. During their discussion, the Council expressed an interest in exploring options that provide businesses with the most flexibility to operate their restaurants with a number of seats that is both safe and operationally feasible. The Council asked staff to present the Planning Commission with alternative methods of calculating seating capacities and to include a Town Code amendment for the Commission's consideration and recommendation to the Council. Exhibit 1 includes verbatim minutes of the December 15, 2015 Council discussion on seating and Exhibit 2 is the staff report from that same Council Meeting. DISCUSSION: Given the discussion by the Town Council regarding allowing businesses to make decisions on seating capacities that are safe, flexible, and operationally successful, staff has drafted a Code amendment (Exhibit 4) for the Planning Commission to consider. This amendment would use the same parking requirements for restaurants as is used for retail businesses and remain silent on the maximum number of seats allowed. This would then allow the seats to be determined pursuant to maximum Fire Code occupancy. As trends emerge fr om the food and beverage industry, seating styles often change to meet these trends. Seats or gathering areas may take many forms, some of those may include: stand-up counter space without seats; large communal tables seating multiple parties; couches; benches; ottomans and lounge chairs; and traditional tables with chairs or fixed booths. Currently, the number of approved seats in Los Gatos restaurants is linked to the number of parking spaces credited to the commercial space. However, as some patrons use alternate transportation, ride together, or park once and visit several locations as is the case with Downtown, the linkage of seats to parking spaces may no longer be an appropriate guideline. In addition, it often becomes difficult to assign a number of "seats" to seating options that do not include an individual chair. Below are considerations for this discussion that were included in the December 15, 2015 Council Discussion: Commercial Zones: The Town consists of several residential and commercial zones. Those that currently allow eating and/or drinking establishments include: C-1, C-2, CH, LM, and CM. The Town code currently addresses parking requirements in two categories: Downtown and Outside of Downtown. Conditional Use Permits: All eating and drinking establishments in Town require a Conditional Use Permit (CUP) to operate in Town. The deciding body for the associated CUP depends on the type of eating/drinking establishment and the location of the proposed establishment; however, all CUPs Planning Commission Staff Report - Page 3 Restaurant Parking Ordinance /A-15-005 January 13, 2016 include a condition that provides for seating capacity based on the number of parking spaces and credits in the Parking Assessment District associated with the proposed location at the time of approval. Should the Code be amended to allow the parking requirements for restaurants to change to permit seating capacities to be based on a calculation other than parking spaces, then ordinance language could be included to allow those with previously approved seating capacities to opt for the new calculation method or whichever method is least restrictive. Moving forward, all new CUPs would either remain silent, or be given a seating capacity condition based on the approved amendment. Calculation Options: Seating calculation methods most widely used in the State of California include maximum Fire Code occupancy, seats per parking space, seats per square footage, or some combination of the three. Many jurisdictions that use a method other than maximum Fire Code occupancy have different seating allowances for their Downtown establishments and other commercial zones. The Commission could consider any of these as recommendations back to the Council. Based on the Council discussion on December 15, 2015 staff prepared the amendments that we believe are appropriate which are reflected in Exhibit 3 for the Planning Commission to consider. The language below reflects an excerpt of the proposed amendments to Section 29.10.150. Sec. 29.10.150. - Number of off-street spaces required (a) Intent. The regulations contained in this section are intended to insure 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, s d shops, restaurant, bars, taverns, and nightclubs. One (1) parking space for each three hundred (300) square feet of gross floor area. (2) Business and professional offices, banks, financial institutions, insurance companies, social service agencies and studios. One (1) parking space for each two hundred fifty (250) square feet of gross floor area. Planning Commission Staff Report - Page 4 Restaurant Parking Ordinance /A-15-005 January 13, 2016 (4) Restaurant (separate bar). One (1) parking space for each three (3) scats. (6) (3)Theaters. One (1) parking space for each three hundred (300) square feet of gross floor area. (7) (4) For uses not specifically listed in this subsection the requirements shall be as set forth in subsection (c). (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, and shops, restaurant, bars, taverns, and nightclubs. One (1) parking space for each two hundred thirty-five (235) square feet of gross floor area. for each three (3) scats in such ptcblic nightelubs, Separating parking requirements from seats would not change the number of parking spaces buildings are required to maintain to meet the square footage calculations governed by Section 29.10.150. For those properties located within the former Parking Assessment Districts that purchased extra spaces within the district, they would still maintain their full parking inventory. The only difference is that seats would be regulated by Fire and Building Code. CEQA DETERMINATION: The project is exempt from environmental review pursuant to CEQA Guidelines under the General Rule [Section 15061 (b) (3)] because it can be seen with certainty that the proposed Town Code amendments will have no significant negative effect on the environment. Planning Commission Staff Report - Page 5 Restaurant Parking Ordinance /A-15-005 January 13, 2016 CONCLUSION AND RECOMMENDATION: A. Conclusion Based on their consistency with the General Plan, staff recommends that the Planning Commission forward the draft Town Code amendments to the Town Council with a recommendation for adoption as outlined below. B. Recommendation For the reasons discussed in this report, staff recommends that the Planning Commission forward the draft Town Code amendments to the Town Council with a recommendation for adoption. The Commission should also include any comments or recommended changes to the draft Town Code amendments in taking the following actions: 1. Find that there is no possibility that this project will have a significant impact on the environment; therefore the project is not subject to the California Environmental Quality Act [Section 15061 (b) (3).]. 2. Make the required finding that the Town Code (Zoning Regulations) Amendments are consistent with the General Plan; and 3. Forward a recommendation to Town Council for adoption of the amendments to the Town Code (Exhibit 4). Alternatively, the Planning Commission may: 1. Forward a recommendation to the Town Council for adoption of the Town Code amendments with modifications; or 2. Forward a recommendation to the Town Council for denial of the Town Code amendments; or 3. Continue the matter to a date certain with specific direction. Prepared by: Monica Renn Economic Vitality Manager k...4___,,4_,,t....7(— pproved by: Joel Paulson, AICP Interim Community Development Director N:1DEV\PC REPORTS 120161Restaurant Prking Ord [A-15-005].docx This Page Intentionally Left Blank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 APPEARANCE S: Los Gatos Town Council: Barbara Spector, Mayor Marico Sayoc, Vice Mayor Marcia Jensen, Council Member Steven Leonardis, Council Mem. Rob Rennie, Council Member Town Manager: Laurel Prevetti Interim Community Development Director: Town Attorney: Transcribed by: Joel Paulson Robert Schultz Vicki L. Blandin (510) 337-1558 EXHIBIT 1 LOS GATOS TOWN COUNCIL 12/15/2015 Item #10, Potential Separation of Parking Requirements and Seating Capacities 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 PROCEEDING S: MAYOR SPECTOR: Agenda Item 10, Potential Separation of Parking Requirements and Seating Capacities, and I see we have someone all ready to make the Staff Report. MONICA RENN: Good evening, Monica Renn, Economic Vitality Manager. Before you tonight is a report discussing the potential separation of parking requirements to seating capacities. Currently in Town the seats are regulated based on the number of parking spaces that an establishment has. At a study session in November the Council had talked about bringing this back to Council for discussion and asked that the Parking Assessment District owners were notified and surveyed. Staff did do that, and of the 230 property owners we received responses from 14. Staff would note that even if the seats are decoupled from the parking, it would in no way change the number of parking credits that anybody has for their LOS GATOS TOWN COUNCIL 12/15/2015 Item #10, Potential Separation of Parking Requirements and Seating Capacities 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 building or their property in the former Assessment District. We're looking tonight for your direction. If you are interested in decoupling the seats from the parking requirements, then Staff would do a little more work on getting some specifics for you, drafting an ordinance amendment and then putting that through the full process of the Planning Commission, then back to the Council for the final review. In our haste to get the addendum out, Joel and I just realized that there was an error on the chart that we gave you, and this illustrates the difficulty to do all the work ahead of learning what your preferences are. When you look at maximum fire code occupancy it is one person per 15 square feet in the dining area, so that doesn't take into account the kitchen space and all of that; that's calculated differently. That doesn't mean that a business would necessarily run their business at that rate, but that is potentially the number of people in that space the fire marshal would allow, and so we wanted to clarify that that is dining area and not gross square footage. LOS GATOS TOWN COUNCIL 12/15/2015 Item #10, Potential Separation of Parking Requirements and Seating Capacities 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Both Joel and I are here if you have any questions on the remaining report. MAYOR SPECTOR: Questions of Staff? Ms. Sayoc. VICE MAYOR SAYOC: I do have a question, and it's more process related. I understand that based on tonight's discussion if there are certain agreements that we come up with, Staff could go back to draft an ordinance that would then go through the process of Planning Commission and then back to Council. I want to follow a lot of the other things that we've done with economic vitality. What if we wanted to do a test pilot of some sort, six months of let's see what happens if we decouple? Does that still have to go through the same process, or can we create a test policy, get it going, and then actually see what happens, what are the consequences? MONICA RENN: The Town Code restricts this, so it's my understanding that the only thing we could do would be a code amendment. If it didn't work we could obviously go back and do another code amendment, we could take it out of the code and then do a policy on top of that so that you had the ability... Is that incorrect? Okay. Or we could go LOS GATOS TOWN COUNCIL 12/15/2015 Item #10, Potential Separation of Parking Requirements and Seating Capacities 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 back and then do a policy if you wanted to have the fluidity to change it. VICE MAYOR SAYOC: Let me see if I can restructure that. If I wanted fluidity and something that we can try sooner rather than through a longer process, what would you recommend? LAUREL PREVETTI: One option would be to suspend certain provisions of the Town Code. That in itself would take into account Town Code amendment, and then you would need to articulate specifically what you are trying to do during the suspension and the replacement rules, if any, that would be in place. That would essentially be a Town Code process, Planning Commission hearing, and Council action. MAYOR SPECTOR: Ms. Jensen. COUNCIL MEMBER JENSEN: I just want to follow up on that a little bit, if I may. The suspension of an ordinance would still require that it go through the Planning Commission, et cetera? So we wouldn't save any time if we did that? We wouldn't be able to do the test process that the Vice Mayor has in mind essentially? LOS GATOS TOWN COUNCIL 12/15/2015 Item #10, Potential Separation of Parking Requirements and Seating Capacities 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ROBERT SCHULTZ: That's correct. Because it's your Zoning Code, state law even mandates that zoning changes go through your Planning Commission. The idea of maybe just doing a suspension though was good, because you could put parameters on there that it's good for six months, or it's 12 months, so it's more like a pilot program, as opposed to changing all the code amendments and General Plan. You do have to have the two readings though, and I don't see any way we could say this was some type of urgency ordinance that you can do in one time by four - fifths vote; I don't see how we would make those findings that there's some urgency that's needed, so you do have to have both your readings. But by doing a type of suspension, I think it's easier to word, for us to come up with those code amendments, because it's just short-term what you're trying to accomplish, so it might be easier from a Staff level to come up with those changes. COUNCIL MEMBER JENSEN: Follow up? MAYOR SPECTOR: Ms. Jensen. COUNCIL MEMBER JENSEN: You anticipated my question regarding the urgency ordinance, however, one of LOS GATOS TOWN COUNCIL 12/15/2015 Item #10, Potential Separation of Parking Requirements and Seating Capacities 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 the things that were mentioned was a policy on top of an ordinance. Could the Town write a policy that was somehow superseding or on top of the ordinance that said okay, we've got this ordinance, except that here's our brand new policy, and then get around to suspending it or changing it at some point? I'm just trying to figure out how we can have the most flexibility. ROBERT SCHULTZ: Instead of changing an ordinance, I believe we could come back with just an ordinance from Council declaring that we would not enforce certain provisions of our ordinance for a period of time, and therefore they would not be enforceable from a code enforcement standpoint. I don't like that way of going about it, because you're not giving the public the ability... One of the reasons why you have ordinances is because you do go through that public progress so that the community knows and hears about it, and has the ability both at the Planning and the Commission, but I've seen where we have had an ordinance and... Well, a perfect example is an ordinance that... Marijuana, when it was first coming out there were actually ordinances that was passed by the Council telling the LOS GATOS TOWN COUNCIL 12/15/2015 Item #10, Potential Separation of Parking Requirements and Seating Capacities 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 police department to give it the lowest priority possible to enforce the marijuana arrests in their towns, because they were promoting the medical marijuana, so it would be the same. We would come back with a policy saying the enforcement of seating is the lowest priority possible, meaning that we weren't going to enforce those provisions of the ordinance. I have seen that done, but I don't think it's the best solution. I think it would be better to go through the process. MAYOR SPECTOR: Ms. Jensen. COUNCIL MEMBER JENSEN: Sorry, just one final follow up on that. The businesses that are operating now under a CUP that has parking linked to seats, their conditions of operation would not change at all pending this process, and then the Council would give you direction on whether we wanted to go towards you bringing us back proposed language or we wanted you to go towards a possible suspension of certain of the sections relating to that, and that would go through the process and we'd figure that out? Is that how it would work? MONICA RENN: Yes, and we do have a placeholder. In January we have the Formula Retail Ordinance going to Planning Commission. We could potentially put this on that LOS GATOS TOWN COUNCIL 12/15/2015 Item #10, Potential Separation of Parking Requirements and Seating Capacities 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 same agenda. If you wanted to make an ordinance change, it could go to Planning Commission as early as January 13th and then come back to you as early as February 2' COUNCIL MEMBER JENSEN: Okay, thank you. MAYOR SPECTOR: Further questions of Staff? Seeing none, thank you. I have no cards. Is there anybody who wants to address the Council on this agenda item? Seeing no one, I will close the public testimony part of our hearing and look to the Council for discussion or a motion? Well, I'll discuss then. I think that what the Council could do this evening, based upon the information it has, is make a decision as to whether or not it wants to consider the decoupling seats from parking, or seats from some other methodology such as the fire requirements, and we could send that issue to the Planning Commission; it could get to the Planning Commission in January. So that's where I see the core of what the Council could do this evening. Mr. Leonardis. COUNCIL MEMBER LEONARDIS: Thank you, Mayor Spector. It sounds like a good idea in principle; I just have reservations about it. I know that a lot of the business owners have already done their own decoupling by LOS GATOS TOWN COUNCIL 12/15/2015 Item ##10, Potential Separation of Parking Requirements and Seating Capacities 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 adding more seats beyond what their CUP requirements may allow, but without a firm commitment on a future parking garage I'm kind of hesitant about moving forward with anything in this regard. MAYOR SPECTOR: I'll recognize myself again. I thought it was a really good Staff Report. I thought the information was very helpful. I thought that the data we got with regard to other jurisdictions and whether or not they had one parking space for three seats, one parking space for four seats, the fact that the fire code was used in several jurisdictions, many which were outside of Santa Clara County, but I just thought the comparison of what we do here versus what they do in other locations was helpful. I also think that how many seats you allow and whether you take parking into consideration or not is very much a local issue. You might have some place like Lompoc that wants to have tons of cars come in, but they don't have tons of cars coming, so they based their seating on the Fire Code, which might have someplace else like Los Altos that doesn't have that same objective. I see the seating/parking issue as a very, very local issue, which is why if this council wants to consider the decoupling that it be vetted by the Planning Commission. LOS GATOS TOWN COUNCIL 12/15/2015 Item #10, Potential Separation of Parking Requirements and Seating Capacities 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Ms. Jensen. COUNCIL MEMBER JENSEN: I'll just weigh in. I think the Council should explore decoupling it. There are many other jurisdictions that do it that way. Sort of in response, or not really in response, to what Councilman Leonardis said, we've had speakers from the downtown tell us that what is important to them is that we have very clear rules, that they are enforceable, and that they apply across the board, so that everybody knows what to do. If the CUPs are being observed more in the breach than in the obedience, then there is something wrong and we need to fix that. If the way to do that is this council to say we would like to consider decoupling it, and we would like everybody to do the research necessarily and present the ideas that I think Ms. Renn was talking about, to do the extra work that needs to be done. For example, I know the count on the comparison jurisdiction chart said Campbell has a rule of one seat per... What is it? I don't know, four seats per one parking, except that it's all enmeshed in a code section that requires shared parking, and it gives credit if you have shared parking and it requires agreement, so it's not quite LOS GATOS TOWN COUNCIL 12/15/2015 Item #10, Potential Separation of Parking Requirements and Seating Capacities 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 right that it's one to four in Campbell, because they're requiring other creative ideas. I would like to see it get vetted. I'd like to see this being taken up. I disagree with the Mayor in that we'll just send it back and say that the Council says think about decoupling it. I think it makes sense, if Staff is saying they're prepared to propose ordinance language, to say and here are some ideas for how it might work if it were decoupled, so that at least they can be on the floor and be discussed. That would be the kind of thing that I would be hopeful that we would do. MAYOR SPECTOR: Further discussion? Ms. Sayoc. VICE MAYOR SAYOC: I absolutely believe that we should decouple parking from seats. I think that we've heard enough testimony from many of our merchants downtown that the CUPs that we've been setting haven't even been followed, and what we've also heard is that the merchants want some flexibility in how they can adopt to the changing economies, changing marketplace, and changing desires of the merchants. The reason why I brought up the process issue is if we realize that retail, restaurant, everything, is changing, I'm concerned that an ordinance with such LOS GATOS TOWN COUNCIL 12/15/2015 Item #10, Potential Separation of Parking Requirements and Seating Capacities 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 specificity will just constantly keep us in a reactive mode, whereas if you have something as broad as a policy that can be fluid and changed depending on what we're actually seeing with our downtown and our commercial centers, we can be more adaptable. What I've also heard from testimony is that if we do something as wild and say let's go with the Fire Code, we really aren't going to be getting restaurant owners that will maximize the seats, because they also want an ambiance and an environment that's comfortable, and most likely they won't get restaurant patrons who want to sit shoulder -to - shoulder to each other. What I'm looking for is I'm looking for an opportunity to allow the restaurant owners to figure out what exactly is the ideal seat count for them to maximize their revenue, which is a high priority for them, but for us also to see what works best for our downtown. I'm concerned that if we limit it, whether it's square footage or seating allowance or parking spaces, we're just creating this artificial boundary of what a restaurant should actually be, and the patrons are the ones who actually decide for themselves based on what's provided. LOS GATOS TOWN COUNCIL 12/15/2015 Item #10, Potential Separation of Parking Requirements and Seating Capacities 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 So I'm looking for Staff to give me this option that gives me the most flexibility, and right now all I can say is I want to decouple it. I don't know which of these boxes is the right one, but I want us to move forward. I don't know if that helps, but that's where I'm at. MAYOR SPECTOR: Mr. Leonardis. COUNCIL MEMBER LEONARDIS: Thank you, Mayor Spector. With respect to the Vice Mayor's comments, yes, restaurants are one type of business downtown, but you also have shopkeepers, and you have a finite amount of parking places, and you also have a lot of employees that work downtown. So yes, right now we are de facto decoupled. That means there's an issue with the ordinance, but really, I think it comes down to we need a bigger bucket to hold more. We can decouple. I don't think that will solve the problem. It could make things worse by allowing people to add seats. I agree with free markets and letting restaurant owners decide and having the flexibility and changing business models and such, but it could have an unknown effect on the shop keepers and the other business owners if too many restaurant owners or bars or whatever decide LOS GATOS TOWN COUNCIL 12/15/2015 Item #10, Potential Separation of Parking Requirements and Seating Capacities 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 they're going to add capacity, and other folks won't have places to park for shopping. I realize that restaurants operate mostly in the evening, and bars and such, but that could be an unwanted side effect. If I had my druthers, I would say Campbell has got a 300 parking place garage right behind a key restaurant. We should find out who built it, how much it cost, and then start the discussion. MAYOR SPECTOR: Mr. Rennie. COUNCIL MEMBER RENNIE: Thank you, Madam Mayor. I'm also I think pretty far on the side of decoupling. I guess I want to be a little bit careful. But when I think about the problem, right now we're designed to try to have a good parking experience, and is that really what we want? I think we want our businesses to be vibrant, and to be able to survive and maybe make a little money or maybe get past break even, so it seems to me it makes more sense to decouple it and let businesses set up the seating that makes sense for them, and if there isn't good enough parking, then it limits who's going to go to the stores. The other way around we're limiting it, but not really knowing whether there could be more people there, LOS GATOS TOWN COUNCIL 12/15/2015 Item #10, Potential Separation of Parking Requirements and Seating Capacities 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 because we don't really know if the parking is filled up, for certain times of day whether it's filled up or not. Also, as our community changes with more people, hopefully we're going to have more transportation options. The downtown is a large area that you can park and you do many things. I think we need to decouple, but I don't want to take the pressure off of us also trying to, as Mr. Leonardis said, make the bucket larger. I think that originally it seems like we had this coupling to keep the pressure on getting more parking spaces, so I don't want to take the pressure off of solving getting more parking spaces, but I am in favor of exploring decoupling. MAYOR SPECTOR: Ms. Jensen. COUNCIL MEMBER JENSEN: A comment, and then a question. Just to follow up on we need to make sure that we have X number of seats and X number of parking, I've seen around the country lots of restaurants, or eating establishments I'm going to call them, where there are no seats, and they're very successful. So I could have zero seats but potentially need 500 parking spots, and I would still be somehow in line with our CUP. LOS GATOS TOWN COUNCIL 12/15/2015 Item #10, Potential Separation of Parking Requirements and Seating Capacities 16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 I'm thinking that the notion of a seat equals a parking space is not current, so I agree with the Vice Mayor that whatever we can do to be more fluid, and this is where I go to my question to Staff. If I were interested in making a motion that said how can I be the most fluid in trying to figure this out versus starting at X and saying we'd like to decouple it and then going off forever, and then coming up with something that in a year is obsolete, how would I accomplish that? I'm looking to Staff to tell me what would be the way to accomplish that? MONICA RENN: That would be to be silent, or to state that it would be the Fire Code, much like Morgan Hill. They have parking ratios, but they are silent on the number of seats, just like we are silent on the number of people that can be in a dress shop or another type of retail establishment. MAYOR SPECTOR: Further discussion? Further questions? Ms. Sayoc. VICE MAYOR SAYOC: Again, following process, then what do you need as Staff to prepare a draft to bring to the Planning Commission if, let's say, we were silent? I LOS GATOS TOWN COUNCIL 12/15/2015 Item #10, Potential Separation of Parking Requirements and Seating Capacities 17 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 don't know if we would get there, but would you then create... What would you bring to the Planning Commission? MONICA RENN: We would redline the current Town Code under the section that speaks to the parking requirements and leave it at just the square footage. So what it is now, it's one for 300 square feet in the downtown, one for 235 square feet outside of downtown. That would remain, but the next section that then goes on to state if you have a separate bar you can have three seats, if you don't you can have four, that would just be redlined out. VICE MAYOR SAYOC: If I may follow up? MAYOR SPECTOR: Ms. Sayoc. VICE MAYOR SAYOC: If I own an eating establishment downtown, what's the effect on me then? My seats are now dependent on the square footage of my (inaudible)? MONICA RENN: That's correct. Whatever the fire marshal says is a safe number to be in that area, and I'll look to Rob. We would probably need to do something if you're looking to allow people who already have a CUP with a maximum number of seats. We may be able to do a blanket statement that allows the least restrictive of those two LOS GATOS TOWN COUNCIL 12/15/2015 Item #10, Potential Separation of Parking Requirements and Seating Capacities 18 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 numbers, and then moving forward everybody would follow whatever the new ordinance was. MAYOR SPECTOR: Following up on Ms. Sayoc's question, if this document goes to the Planning Commission, would you be telling the Planning Commission here's what the Council wants you to do? MONICA RENN: I think that we would say this was the discussion that we had, this was the Council's recommendation and they're asking for your feedback. I don't know, we could do whatever you would like us to do. We could say this is what the Council wants, or we could say this is for your consideration. MAYOR SPECTOR: Ms. Jensen. COUNCIL MEMBER JENSEN: A follow up on the same question. We could stay silent on page two of our Staff Report. Under where it says, "Conditional Use Permits," you say, "Should the Council choose a method other than parking space credits to calculate seats, ordinance language could be included to allow those," blah, blah, blah, so it seemed like Staff had something in mind? Did you have something in mind as options? I'm going to say that, and then add on to that if we didn't want to just stay silent, if we wanted to, for LOS GATOS TOWN COUNCIL 12/15/2015 Item #10, Potential Separation of Parking Requirements and Seating Capacities 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 example, say we want to allow you to do agreements to share parking, and we want to do whatever so that we were creative with our parking requirements, how would we do that? MONICA RENN: We could certainly propose if you could give us that feedback tonight we could put it into an ordinance. We had talked about another option being to not address it in the ordinance, and then do a policy if you wanted those things to be more fluid, the shared agreements and things like that. And Joel may have more to add. JOEL PAULSON: I would just add for the shared parking in particular, that's currently in our Conditional Use Permit table, so that would require modification as well. We could encourage it. It currently requires a CUP, but we could add language to the restaurant section specifically to allow for that potentially without a Conditional Use Permit. COUNCIL MEMBER JENSEN: Okay. I wouldn't necessarily want it to be limited to restaurants, but I understand you're telling me it's in the CUP table. MAYOR SPECTOR: Further discussion? Ms. Sayoc. LOS GATOS TOWN COUNCIL 12/15/2015 Item #10, Potential Separation of Parking Requirements and Seating Capacities 20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 VICE MAYOR SAYOC: One of the reasons why we would have to go through the Policy Commission is one of the goals is to have any interested person weigh in on this potential town -wide change. How would we alert the public that this is a significant issue that we're considering? MONICA RENN: Typically I will do an email out to all of the business owners. We could do other outreach if you would like, something in the paper or other... We obviously would use our "What's New!" in our avenues here, but if there was a deeper outreach that you wanted us to do, we could certainly do that. MAYOR SPECTOR: Can we follow up on that? You mentioned having the information go out to the business people. How would the information of a new parking code amendment or change be given to the public? MONICA RENN: It would be done through our public noticing like we do with all of our noticing, but we could do further noticing if you wanted it to be not necessarily just in the legal notices in the paper. LAUREL PREVETTI: Another option for your consideration is that typically the Los Gatos Weekly is looking for local stories such as this, and this might be a LOS GATOS TOWN COUNCIL 12/15/2015 Item #10, Potential Separation of Parking Requirements and Seating Capacities 21 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 public interest story that a reporter may want to focus and highlight. MAYOR SPECTOR: Ms. Sayoc, I cut you off. Do you have anything else? VICE MAYOR SAYOC: No, actually it was along the same vein. I think advertising and reaching out to the business owners is one subset, but if parking is a significant issue that is of concern to any patron, that's a town -wide issue, and so I would encourage you to use all of our mechanisms so that it's just not for business, because they have a certain angle, and we have to make sure that we're hearing from everyone. MONICA RENN: Sure. MAYOR SPECTOR: All right, Council, do we have a motion? Ms. Jensen. COUNCIL MEMBER JENSEN: Okay, I'll try a motion. My motion would be to direct Staff to present options, including potential ordinance language, to the Planning Commission for discussion with respect to decoupling parking and seats (inaudible) just going to say that, in our codes and ordinances, and not indicate in any of the options presented that the Council is directing a particular action, but that these things are being LOS GATOS TOWN COUNCIL 12/15/2015 Item #10, Potential Separation of Parking Requirements and Seating Capacities 22 1 2 3 4 5 6 7 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 presented to the Planning Commission at the request of the Council for discussion and feedback. MAYOR SPECTOR: We have a motion. Do we have a second? Mr. Rennie. COUNCIL MEMBER RENNIE: I'll second. MAYOR SPECTOR: All right, we have a motion and a second. Discussion? Mr. Leonardis. COUNCIL MEMBER LEONARDIS: Well, I'm going to support the motion. I do believe in the concept of decoupling. I think it's an age-old question that has reared its head in this community for a long time. I realize a lot of the businesses are currently out of compliance in their CUPs with the seating, particularly the restaurants and such. I am concerned about some unknown consequences, as I was with the valet parking. Again, we can try what we can moving forward to kind of game this lack of parking in our community, but it's imminent that's we're going to need a bigger bucket, so being that this is only going to go back to the Planning Commission and then come out, and I guess we'll be potentially voting on it again in the future, I will be supporting the motion. LOS GATOS TOWN COUNCIL 12/15/2015 Item #10, Potential Separation of Parking Requirements and Seating Capacities 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MAYOR SPECTOR: Further discussion? Do I see Mr. Rennie? No? Oh, the Town Manager. LAUREL PREVETTI: Sorry. I just wanted to clarify the motion. If in the Planning Commission's discussion and feedback of the different options they were to provide a recommendation for a specific ordinance proposal, would that beat the needs? So let's say they go beyond feedback and actually have a specific proposal for your consideration. Would that be acceptable? MAYOR SPECTOR: We'll start with the maker of the motion. Is that what you had in mind? COUNCIL MEMBER JENSEN: Yes, and I'll just be more clear. What I had in mind with that: option one would be suspend portions, option two would be take it out altogether, option three would be language presented as per the Staff Report, option four might be something else, and that it's for the Planning Commission to discuss and if they got to the point where they wanted to recommend one of those options specifically and that was an ordinance, that would be encompassed in my motion. MAYOR SPECTOR: Thank you. Before I discuss, seconder of the motion? LOS GATOS TOWN COUNCIL 12/15/2015 Item #10, Potential Separation of Parking Requirements and Seating Capacities 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 COUNCIL MEMBER RENNIE: I think that was me, but that's okay, yes. MAYOR SPECTOR: All right. At this point I thought I understood the motion and I was prepared to support it, but now that is inconsistent with my notes, so I will have Ms. Prevetti restate the motion. LAUREL PREVETTI: The motion as I heard it was the Council would be directing Staff to present options, including potential ordinance language, to decouple parking and seats in the code for discussion and feedback by the Planning Commission. MAYOR SPECTOR: All right, thank you. Further discussion? Seeing none, all in favor? Opposed? Passes unanimously. Thank you. LOS GATOS TOWN COUNCIL 12/15/2015 Item #10, Potential Separation of Parking Requirements and Seating Capacities 25 This Page Intentionally Left Blank MEETING DATE: 12/15/15 ITEM NO: P1 COUNCIL AGENDA REPORT DATE: DECEMBER 7, 2015 TO: MAYOR AND TOWN COUNCIL FROM: LAUREL PREVETTI, TOWN MANAGER SUBJECT: POTENTIAL SEPARATION OF PARKING REQUIREMENTS AND SEATING CAPACITIES RECOMMENDATION: Provide direction on the potential separation of parking requirements and seating capacities. BACKGROUND: Since September I, 2015, the Council has been considering a series of policies and Code amendments that relate to businesses including formula retail, paid valet parking service in Downtown, a revised outdoor seating policy, retail and restaurant definitions, and the relationship between parking requirements and seating capacities in restaurants. At the October 6, 2015 meeting, the Council requested that these items be broken apart and discussed individually at upcoming meetings to more fully address each topic. This report addresses options for the Council to consider regarding the relationship between parking requirements and seating capacities, as well as benchmarking information from other jurisdictions (Attachment 1), and a summary of the history of the Parking Assessment District (PAD) (Attachment 2). If the Council should choose to remove the relationship between parking and seating capacities within Downtown, it would in no way alter the current status of the PAD, or the number of spaces credited to each parcel. In addition, as requested by the Council, staff reached out to the approximately 230 property owners within the PAD to request their input on this discussion by way of an online survey and received fourteen responses. Of those responses, eight property owners were in support of changing the way the Town calculates seating capacities in Downtown, five were opposed, and one felt that they needed to understand the discussion and reasons further. PREPARED BY: MONICA RENN Economic Vitality Manager Reviewed by: Assistant Town Manager Town Attorney NA Finance N.\MGR\AdminWorkFiies12015 Council Reports\December I5\stating to parking staf repon.doc EXHIBIT 2 PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: POTENTIAL SEPARATION OF PARKING REQUIREMENTS AND SEATING CAPACITIES. DECEMBER 7, 2015 DISCUSSION: As trends emerge from the food and beverage industry, seating styles often change to meet these trends. Seats or gathering areas may take many forms, some of those may include: stand-up counter space without seats; large communal tables seating multiple parties; couches, benches, ottomans, and lounge chairs; and traditional tables with chairs or fixed booths. Currently, the number of approved seats in Los Gatos restaurants is linked to the number of parking spaces credited to the commercial space. However. as some patrons use alternate transportation, ride together, or park once and visit several locations as is the case with Downtown, the linkage of seats to parking spaces may no longer be an appropriate guideline. In addition. it often becomes difficult to assign a number of "seats" to seating options that do not include an individual chair. Thus, it may be more appropriate to have parking requirements based on other metrics, such as square footage or maximum fire code occupancy. Below are considerations for this discussion: Commercial Zones: The Town consists of several residential and commercial zones. Those that currently allow eating and/or drinking establishments include: C-1, C-2, CH, LM, and CM. The Town code currently addresses parking requirements in two categories: Downtown and Outside of Downtown. If the Council chooses to effect change in the parking requirements for eating/drinking establishments, it could be done in either, or both of these Town Code categories. Conditional Use Permits: All eating and drinking establishments in Town require a Conditional Use Permit (CUP) to operate in Town. The deciding body for the associated CUP depends on the type of eating/drinking establishment and the location of the proposed establishment; however, all CUPs include a condition that provides for seating capacity based on the number of parking spaces and credits in the PAD associated with the proposed location at the time of approval. Should the Council choose a method other than parking space credits to calculate seats, ordinance language could be included to allow those with previously approved seating capacities to opt for the new calculation method, or whichever method is least restrictive. Moving forward, all new CUPs would be given a seating capacity condition based on the approved ordinance change. Current Code Provisions: The number of seats a restaurant may have within the establishment is currently governed by Town Code. Section 29.10.150, thus any changes to this section would require a public hearing by both the Planning Commission and Town Council. PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: POTENTIAL SEPARATION OF PARKING REQUIREMENTS AND SEATING CAPACITIES. DECEMBER 7, 2015 DISCUSSION (coned): The Town Code parking requirements for retail, office. restaurants. and drinking establishments, both in Downtown and in other commercial zones are: The parking requirement for various uses in the downtown are as follows: (1) Retail and commercial stores and shops. One (1) parking space for each three hundred (300) square feet of gross floor area. (2) Business and professional offices. hank, financial institutions, insurance companies, social service agencies and studios. One (1) parking space_for each two hundred fifty (250) square feet of gross floor area. (3) Restaurant (no separate bar). One (1) parking space for each four (4) seats. (4) Restaurant (separate bar). One (1) parking space for each three (3) seats. (.i) Bars, taverns and nightclubs. One (.1) parking space for each three (3) seats. Outside downtown parking requirements. • (9) Retail and commercial stores and shops. One (1) parking space jor each two hundred thirty:five (235) square feet of gross floor area. (10) Business and professional offices., banks, financial institutions, insurance companies. .social service agencies and studios. One (1) parking space,Jor each two hundred thirty- five (235) square feet of gross floor area. (15) Public eating establishments, taverns, and nightclubs. One (1) parking space.fbr each three (3) seats in such public eating establishments, taverns or nightclubs. Benchmarking: Staff reached out to neighboring and other jurisdictions in California to understand how they regulate parking and/or seating, and received several responses, see Attachment I . Calculation Options: Seating calculation methods most widely used in the State of California include maximum fire code occupancy, seats per parking space, seats per square footage, or some combination of the three. Many jurisdictions that use a method other than maximum fire code occupancy have different seating allowances for their Downtown establishments and other commercial zones. CONCLUSION AND NEXT STEPS: The Council should provide direction regarding parking and seating. From there, staff could research the calculation options and discuss the options with the Planning Commission. Staff would then draft a Code amendment. The draft amendment would first be considered by the Planning Commission, who would then make a recommendation for the Council to consider and make a final decision. PAGE 4 MAYOR AND TOWN COUNCIL SUBJECT: POTENTIAL SEPARATION OF PARKING REQUIREMENTS AND SEATING CAPACITIES. DECEMBER 7, 2015 ALTERNATIVES: The Council could decide that the current relationship between seats and parking space credit within Town Code Section 29.10.150 is most appropriate and direct staff to do no further investigation on alternative calculation methods. COORDINATION: The preparation of this report was coordinated with the Town Managers Office and the Community Development Department. Attachments: 1. Benchmarking 2. Historical Summary of the Parking Assessment District BENCHMARKING ON SEATING REQUIREMENTS JURISDICTION REQUIREMENTS FOR EATING/DRINKING ESTABLISHMENTS Los Altos 3 seats per 1 parking space. City does not count outdoor seats in total seat count. Saratoga One space for each seventy-five square feet of floor area. In addition, if the restaurant has outdoor dining, one space for each seventy-five square feet of outdoor dining area shall also be provided. Morgan Hill I parking space is required for every 100 square feet of gross floor area, and seats are only limited by the fire code. San Jose Drinking Establishments: 1 space per 2.5 seats or I space per 40 square feet of drinking area, whichever requires the greater number of parking spaces Entertainment (with any food or alcohol service): 1 space per 40 sq. ft. of area open to the public Outdoor dining incidental to a public eating establishment or a retail establishment: 0 spaces up to 25 seats, 1 space per 2.5 for seats over 25 Public eating establishments: 1 space per 2.5 seats or 1 space per 40 square feet of dining area, whichever requires the greater number of parking spaces Take-out only establishment (including but not limited to pizza delivery, ice cream shops, doughnut shops): 1 per 75 sq. ft. of area open to the public, minimum of 5 spaces, plus 1 per delivery vehicle (if applicable) Downtown Restaurants in San Jose do not require parking. Campbell Downtown: 1 space per 4 seats Outside of Downtown: Eating/Drinking establishments with no drive-thru: 1 space for 3 seats indoor or outdoor, plus l space for each 200 SF of non -dining floor area. Take-out only dining with no seats: 1 space for 250 SF, but not less than 2 spaces Menlo Park Requires 6 parking spaces per 1,000 square feet of space. Cupertino Restaurant/Bar and Nightclubs: 1/3 seats + I/employee + 1/36 sq. ft. of dance floor Restaurants without Separate Bar: 1/4 seats + 1/employee + 1/36 sq. ft. of dance floor Restaurant - Fast Food: 1/3 seats + 1/employee Palo Alto For California Avenue Parking Assessment District: With drive-in or take-out facilities: 3 per 100 sfof gross floor area All others: 1 per 155 sf of gross floor area With drive-in or take-out facilities: 3 per 100 sq. ft. of gross floor area All others: 1 space for each 60 gross sq. ft. of public service area, plus 1 space for each 200 gross sq. ft. for all other areas. ATTACHMENT 1 BENCHMARKING ON SEATING REQUIREMENTS Sunnyvale Restaurant without Bar: 1 space / 110 sq fl. Restaurant with Bar: 1/75 sq. ft. Bar Only: 1/50 sq. ft.: 1/50 sq. ft. Restaurants with 100% Fixed Seating and No Bar: 1/2 fixed seats + 1 /400 sq. ft. of area not devoted to seating Outdoor Seating. Additional parking is required for outdoor seating exceeding twelve seats per business. Seats exceeding this amount are required to provide additional parking at the rate of 0.33 spaces per seat for each seat above twelve. Mountain View Restaurants, cafes, bars, other eating/drinking places Take-out only: 1 space for each 180 sq. ft. of gross floor area Fast food (counter service): 1 space for each 100 sq. ft.; minimum 25 spaces Table Service: 1 space for each 2.5 seats or 1 space for each 100 sq. ft. of gross floor area, whichever is greater Outdoor seating: 1 space for each 2.5 seats Benicia Maximum occupancy drives seat count, and seats drive parking. If occupancy allows more seats than parking, the establishment either reduces the number of seats or seeks a parking variance. Sacramento Fire Code dictates the maximum number of seats an establishment may have. Simi Valley Fire Code dictates the maximum number of seats an establishment may have. Lompoc Fire Code dictates the maximum number of seats an establishment may have. Redding 3 seats per 1 parking space. Grover Beach California Building or Fire Code dictates the maximum number of seats an establishment may have. ATTACHMENT 1 HISTORICAL SUMMARY OF THE DOWNTOWN PARKING ASSESSMENT DISTRICT On October 6, 2015, in response to a discussion regarding definitions and policies for formula retail. specialty retail, outdoor seating, and related business uses and processes, Council directed staff to provide background informational regarding the Downtown Parking Assessment District (PAD). DISCUSSION: The following is a summary regarding the creation and history of the current Parking Assessment District. A. Downtown Specific Plan On May 18, 1982, the Town Council adopted the Downtown Specific Plan (DTSP) to guide and coordinate downtown implementation programs designed to resolve existing downtown issues and address future needs. The DTSP was amended on. February 23, 1986, to incorporate a parking program, including priorities for constructing parking facilities. The DTSP was again amended on April 18, 1994 to change the priority of future parking facilities. The DTSP was repealed on August 7, 2000, on the basis that the plan was no longer needed as the implementation measures had either been completed or were carried forward to the General Plan 2000. The DTSP stated that a single unified parking district shall be formed for the Central Business District/East Main St area and membership in that Parking District shall be required for removal of non -conforming status due to parking. A policy of the DTSP was that the non -conforming status of downtown uses due to the lack of adequate parking shall be removed contingent upon the owners' continuing participation in the implementation of the downtown parking program. B. Parking Assessment District A report from the Town's Parking Committee, dated August 17, 1982, in regards to the creation of the Downtown Specific Plan, which ultimately led to the creation of the Town's PAD, notes that parking assessments are based on gross floor area. As defined by Town Code in 1982 (and currently), gross floor area means the entire area of all floors, including basements and cellars, measured from the outer face of exterior walls or, in the case of party walls, from the centerline. The Downtown Parking Survey used for the PAD, dated October 29, 1982, notes that floor areas for business establishments are all estimates. Existing floor areas for the PAD were calculated from floor plans that were on file with the Town or were calculated from aerial photographs and then allocated to each business by measuring the business frontage. Since this information was not precise, property owners were encouraged at that time to provide additional information regarding the calculations. Since the floor areas were all estimates, the Town has subsequently found that several businesses downtown do not have the precise square footage calculated for the PAD. Typically when a discrepancy is found, it is that the old square footage estimate is less than what really exists. However, Town staff has found a few instances where the property owner over estimated their square footage originally. N:1MGR1AdminworkFilesi2015 Council Reponakccmber t 5.Attachment 2 PAD summary docx ATTACHMENT 2 PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: Parking Assessment District Background December 4, 2015 The PAD data notes the following category of land uses for each parcel: retail, office, restaurant, and residential. Miscellaneous uses were classified under retail. Although the PAD data notes whether or not a parcel had a residential unit at the time of the survey, and documents the square footage, property owners were not assessed for parking for the residential use. To finance the parking improvement projects of the PAD, on December 5, 1988, the Town issued 25-year Limited Obligation bonds which sunseted in December 2013. The bonds are not a financial liability of the Town and were issued upon and secured by assessments on properties within the PAD. Installments of principal and interest sufficient to meet annual bond debt service were included in the property owners' regular county tax bills. Property owners were also given the option of paying their assessment in advance. Given the parking challenges and opportunities in the downtown central business district to fund the creation of more parking, the PAD established the number of parking credits for each parcel in the district. The fee was based on a formula and the number of spaces (credits) a property owner purchased, and from that point on, was unchangeable. These credits did not translate into a dedicated space and exclusive ownership, but a right to use space from the "pool" of spaces created by the PAD. The PAD did not provide an opportunity amendment or adding credits. C. Town Code On May 18, 1987, The Town Code was amended concerning rules for properties within a PAD. Section 29.10.150(0(2) of the Town Code states that the creation of a PAD relieves those properties located within the district which were nonconforming as to parking from having to supply on -site parking spaces as required by Town Code. Based on this code section and that there is no direction in the historic PAD reports on how to handle corrections to the estimates, the Town has not required businesses in the PAD to: • Meet required parking for their existing floor area (which would be impossible due to lack of onsite space); or • Pay additional funds into the parking assessment district for their existing floor area (it has been documented that there is no mechanism to pay into the district); or • Reconfigure their buildings to remove excess square footage (this would be a hardship to the business and property owner and goes in the opposite direction of economic vitality of the downtown). Pursuant to Section 29.10.150(f) (4) of the Town Code, additional parking would only be required if additional square footage was added (excluding those properties which paid into the district to increase their floor area to the maximum permitted) or the use was intensified. It is important to note that the Town has never considered that these businesses that have more floor area than what is documented in the PAD were nonconforming as to parking since the PAD was created to eliminate that nonconformity. D. Parking Credits for Expansions, New Development. and Intensification of Use PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: Parking Assessment District Background December 4, 2015 The maximum floor area ratio (FAR) for new construction in the PAD is .60. The option to include additional floor area in the PAD calculation was intended to give vacant properties and properties with smaller buildings (FAR less than .60) an opportunity for future building or intensification up to a FAR of .60. Some property owners did not take advantage of this opportunity. For those properties that took the opportunity and paid into the district for these credits, they can possibly add additional square to their building or intensify the use without providing on -site parking. Based on the 1998 data, out of the 186 parcels in the district that have the potential for additional floor area, approximately 7I of those parcels have the possibility to do so. This is due to the fact that the Town Code requires PAD properties to maintain whatever existing on -site parking they may have since those spaces were included in the PAD assessment calculations, which greatly restricts adding onto a building. The remaining 115 parcels that paid into the PAD for potential additional floor area have site constraints that may never allow them to add square footage. The square footage that may never be built equates to 318 parking spaces. Therefore, depending on the use of these businesses, there is a possibility that up to 318 spaces within the PAD are not assigned to a use. E. Exceptions Although no mechanism was established in the PAD to allow a property owner to pay into the Assessment District for additional parking spaces, Council has approved two requests to purchase additional parking spaces to intensify a use through the earthquake restoration process. The basis for these approvals was that Town Council adopted Urgency Ordinances 1800 and 1860, which included a provision that allowed any Town Code requirement to be waived in response to the earthquake restoration process. On April 17, 1990, Council approved a request at 19 N. Santa Cruz Avenue to allow on site tandem parking and to pay an in -lieu fee for one parking space to increase the building square footage. The Council found that in this instance, the most logical, safe method of restoring this earthquake damaged building required the construction of additional floor area. The in -lieu fee was estimated be to be $16,000 per space. The property owner chose to reduce the number of restaurant seats to avoid the in -lieu fee. On January 6, 1992, Town Council approved a request for a new restaurant at 21 N. Santa Cruz Avenue, to create on site tandem parking and to pay an in -lieu fee for four additional spaces to increase the number of seats. The Council found that the "appropriate circumstances" to waive the requirements was that it would help revitalize the downtown area since the space had been vacant since the earthquake. The property was badly damaged by the earthquake, the property owner had passed away and the building was going through foreclosure. The applicant paid the in -lieu fee which was determined to be $17,000 per space, for a total of $68,000, and the funds were required to be used by the Town to construct future parking. F. New Parking PAGE 4 MAYOR AND TOWN COUNCIL SUBJECT: Parking Assessment District Background December 4, 2015 Subsequent to the construction of the eight parking lots/structures which equates to approximately 1,005 spaces created through the parking assessment district, the Town has constructed two additional public parking lots in the Central Business District which were not funded through the PAD. In approximately 2003, a 16 space parking lot (Southside Lot) was constructed at 145 S. Santa Cruz Avenue across from the Toll House Hotel. In 2009, 29 off street parking spaces were added to Parking Lot 6 at 224 W. Main Street. These two projects contributed 45 additional off street spaces to the inventory. In addition, in 2002 the Town secured a parking lot lease with Verizon at 15 Montebello Way east of the Post Office (Montebello Lot). The current lease runs until 2019 and is subject to amendments and adds 26 off street spaces. So in all, there have been 71 spaces added to the Downtown Parking Inventory since 2002 that are not included in the PAD. CONCLUSION: Section 29.10.150(0(2) of the Town Code states that the creation of a PAD relieves those properties located within the district which were nonconforming as to parking from having to supply on -site parking spaces as required by Town Code. Pursuant to Town Code and past actions by the Town, additional parking in the PAD is only required if square footage is added or the use is intensified. As documented in numerous historic reports regarding the PAD, square footages were estimates, there is no mechanism to allow a property owner to pay into the Assessment District for additional parking spaces and there is no direction in the historic PAD reports on how to handle corrections to the estimates. Since there is no mechanism to pay for additional parking, and if there is no room on the site to accommodate additional onsite parking, the Town has historically not required businesses to physically eliminate the excess square footage from the building which would have been the only alternative to balance out the excess square footage issue. LRP:JSP:cg C':\UscrsVPaulson \DesktoptiPADBackground.docx MEETING DATE: 12/15/15 ITEM NO: 10 ADDENDUM COUNCIL AGENDA REPORT DATE: DECEMBER 14, 2015 TO: MAYOR AND TOWN COUNCIL FROM: LAUREL PREVETTI, TOWN MANAGER i{c/ SUBJECT: POTENTIAL SEPARATION OF PARKING REQUIREMENTS AND SEATING CAPACITIES REMARKS; After the initial staff report was distributed, staff received an inquiry from a Councilmember regarding seating calculations. The following information provides an explanation of seating calculations using square footage rather than parking spaces. California Building and Fire Codes allow seating for restaurants at a rate as low as one person per 15 square feet, up to the first 1,000 square feet. For some jurisdictions, seating is allowed up to the maximum Fire Code occupancy. In the case of other benchmarked jurisdictions, seating is restricted by another metric as set forth in their adopted Codes, such as one seat per 40 square feet. To help steer staff's work, staff is asking for general direction from the Council regarding its desire, or lack thereof, to decouple seating and parking requirements and becoming less restrictive on seating capacities. Based on Council direction, staff could provide options for consideration to PIanning Commission, and after their vetting, Code amendments would be prepared for public hearing. The following chart provides an example of how the seating capacities may change with a change in calculation method. PREPARED BY: MONICA RENN Economic Vitality Manager /'/ g Reviewed by: e, . Assistant Town Manager p )1 Town Attorney 1) ii Finance N:\MGRAdmin WorkFi1es12015 Council Reports\December 15\Addendum-Desk Item Seating to Parking doc.doc EXHIBIT 3 PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: POTENTIAL SEPARATION OF PARKING REQUIREMENTS AND SEATING CAPACITIES DECEMBER 14, 2015 REMARKS (cont'd): DINNING AREA IN SQUARE FEET 1,000 1,800 2,300 LPARKING SPACES Number of parking spaces that would be credited to the commercial space based on square footage in downtown 3.31 6 7.67 Number of parking spaces that would be credited outside of downtown. 4.26 7.66 9.79 SEATING Seating allowance at 4 seats per 1 space (C2 calculation with no separate bar) 13.32 24 30.68 Seating allowance at 3 seats per 1 space (C2 with separate bar) 9.99 18 23.01 Seating allowance at 3 seats per 1 space (Outside of downtown) 12.78 22.98 29.37 Fire Code occupancy estimate, assuming unfixed seats 66.67 74.67 79.67 1 seat per 40 sq. ft. 25 45 57.5 1 seat per 100 sq. ft. 10 18 23 Public Comment was received after distribution of the staff report on December 10, 2015 and is included as Attachment 3. Attachments previously received with Staff Report on December 10, 2015: 1. Benchmarking 2. Historical Summary of the Parking Assessment District Attachments received with this Addendum: 3. Letter from McCarthy Ranch/Rootstock Wine Bar MCCARTHY RANCH Town of Los Gatos Attn: Town Council 110 E Main Street Los Gatos, CA 95030 VIA EMAIL Honorable Council Members, December 14, 2015 First and foremost, we would like to commend you on the steps you have taken this year to update the numerous policies and ordinances that impact the various businesses in Los Gatos, and specifically downtown. Los Gatos businesses have been suffering in recent years. There are several major competitive factors that have impacted our Town. First, the revitalization of existing downtowns such as Redwood City, Los Altos, Mountain View, Campbell and downtown San Jose (with San Pedro Market and the addition of thousands of new residential units to support retail and restaurant businesses in that area). Second, the development of new downtowns that never existed before such as Cupertino, Sunnyvale, Santana Row, and soon to be South San Jose and even Los Gatos's own North 40. Third, the erosion of traditional retail shopping by the online marketplace. These changes have made bringing customers in to our Town as challenging as it has ever been. Staff has done a good job of framing the issue, however, an important question to ask is when the cities that are listed as a comparison last established their parameters? It has probably been some time since any of their regulations have been reviewed. These neighboring municipalities are all being impacted by the same factors we mentioned above. With the changing environment of urban and transit oriented design inclusive of how people travel and visit businesses, a lot of regulatory policies and ordinances need to be updated. This is the chance for Los Gatos to get ahead of the game by addressing the issue before our competitors do. The idea of a "dooms -day" scenario where parking and traffic become gridlock by the addition of new seats in restaurants is purely unrealistic. Many restaurants are operating out of compliance as it is and this step would simply bring them into compliance as well as allow other neighboring businesses the opportunity to compete fairly. In turn downtown becomes more successful. Restaurants need the ability to reach their own balance of seats that are adequate for their business. This should simply be limited by the safety factors governed by occupancy that is established by the Fire Marshall. Please take the necessary step of unlinking parking and seat count in restaurants in order to allow all of the restaurants in our beloved Town to adjust their seat count if necessary in order to become more successful. McCarthy Ranch/Rootstock Wine Bar AT FACHM ENT 3 15425 Los Gatos Blvd Suite 102 Los Gatos, CA 95032 (408) 356.2300 Fax (408)356.2338 This Page Intentionally Left Blank Sec. 29.10.150. - Number of off-street spaces required. (a) Intent. The regulations contained in this section are intended to insure 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, and shops, restaurant, bars, taverns, and nightclubs. One (1) parking space for each three hundred (300) square feet of gross floor area. (2) Business and professional offices, banks, financial institutions, insurance companies, social service agencies and studios. One (1) parking space for each two hundred fifty (250) square feet of gross floor area. (5) Bars, taverns and n ' b (3) Theaters. One (1) parking space for each three hundred (300) square feet of gross floor area. (4) For uses not specifically listed in this subsection the requirements shall be as set forth in subsection (c). (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). (1) Single family, residential condominiums and two-family dwellings. Two (2) parking spaces for each living unit. (2) Secondary dwelling units. Parking spaces shall be provided in addition to the required minimum number of parking spaces for the primary dwelling unit as follows: Interior secondary dwelling unit 1 space Attached secondary dwelling unit 1 space Detached secondary dwelling unit 2 spaces (3) Multiple -unit dwellings in all zones and two-family dwellings in the R-ID zone. One and one-half (1 Y2) times the number of living units in such dwellings. Page 1 (4) Hotels, motels and auto courts. One (1) parking space for each guest room or suite, plus one (1) parking space for each employee. Lodginghouses, boardinghouses. One (1) parking space for each two (2) beds in such building, plus one (1) parking space for each employee. (6) Hospitals. One and one-half (11/2) parking spaces for each bed. For uses not specifically listed in this subsection the requirements shall be as set forth in section 29.10.150(c). Sanitariums, convalescent homes and rest homes. One (1) parking space per two and one-half (21/2) beds. (8) Medical or dental clinic or office. One (1) parking space for each two hundred fifty (250) square feet of gross floor area or six (6) spaces per doctor; whichever is more restrictive. Retail and commercial stores, and shops, restaurant, bars, taverns, and nightclubs.. One (1) parking space for each two hundred thirty-five (235) square feet of gross floor area. (5) (7) (9) (10)Business and professional offices, banks, financial institutions, insurance companies, social service agencies and studios. One (1) parking space for each two hundred thirty- five (235) square feet of gross floor area. (11)Household furniture, appliances and furniture repair shops. One (1) parking space for each three hundred fifty (350) square feet of gross floor area. (12)Enclosed automobile or machinery sales. One (1) parking space for each four hundred seventy (470) feet of gross floor area. (13) Open sales areas. Two (2) parking spaces for each employee. (14)Service stations and auto repair and auto service businesses. Two (2) parking spaces for each grease rack or working bay, plus one (1) parking space for each employee. (15)Public eating establishments, taverns, and nightclubs. One (1) parking space for each (15) Wholesale establishments and warehouses. One (1) parking space for each two thousand three hundred fifty (2,350) square feet of gross floor area, plus one (1) parking space for each company vehicle used in the operation of such establishment or warehouse. (16)Manufacturing plants, machine shops, research or testing [laboratories, bottling plants] and printing plants. One (1) parking space for each one and one-half (1' ) employees, plus one (1) parking space for each company vehicle used in the operation of such plant, shop or laboratory. (1 7)Funeral homes and mortuaries. One (1) parking space for each [seven hundred (700) square feet of gross] floor area, plus one (1) parking space for each employee and one (1) parking space for each company vehicle used in the operation of such home or mortuary. (18) Community centers and libraries. One (1) parking space for each [five hundred ninety (590) square feet of] gross floor area, plus one (1) parking space for each employee. Page 2 (19)Post offices. One (1) parking space for each two hundred thirty-five (235) square feet of gross floor area, plus one (1) parking space for each employee, and one (1) for each official vehicle. (20)Private clubs and lodges. One (1) parking space for each three hundred fifty (350) square feet of gross floor area, plus one (1) parking space for each three hundred fifty (350) square feet of outside areas employed for purposes of assembly and meeting by the members and guests of such clubs and lodges, plus one (1) parking space for each five hundred ninety (590) square feet of outside areas developed for recreational purposes, such as gardens, swimming pools, park areas and assembly areas, excepting golf course playing area and similar field sports. (21) Elementary schools. One (1) parking space for each employee, and if such school has an auditorium there shall be one (1) parking space for each three and one-half (3 %) fixed seats in such auditorium, plus one (1) parking space for each six (6) linear feet of fixed benches therein, or one (1) parking space for each thirty-five (35) square feet of gross floor area in such auditorium. (22)Intermediate or junior high schools. One (1) parking space for each employee, and if such school has an auditorium there shall be one (1) parking space for each three and one-half (3 %) fixed seats in such auditorium, plus one (1) parking space for each six (6) linear feet of fixed benches therein, or one (1) parking space for each thirty-five (35) square feet of gross floor area in such auditorium. (23)High schools. One (1) parking space for each employee, plus one (1) parking space for each seven (7) students in such high school and if such school has an auditorium there shall be one (1) parking space for each three and one-half (3',4) fixed seats in such auditorium plus one (1) parking space for each six (6) linear feet of fixed benches therein, or one (1) parking space for each thirty-five (35) square feet of gross floor area in such auditorium. (24) Colleges. One (1) parking space for each employee, plus one (1) parking space for each three (3) students in such college, and if such college has an auditorium, there shall be one (1) parking space for each three and one-half (3%) fixed seats in such auditorium, plus one (1) parking space for each six (6) linear feet of fixed benches therein, or one (1) parking space for each thirty-five (35) feet of gross floor area in such auditorium. (25) Churches. One (1) parking space for each four (4) seats in each building used separately, or together with any other building, for worship. (26)Bowling lanes. Seven (7) parking spaces for each lane in each establishment. (27)Auditorium, theaters, sports arenas, stadiums and assembly halls, with or without fixed seats. One (1) parking space for each three and one-half (3'/Z) fixed seats on such premises, plus one (1) parking space for each six (6) linear feet of fixed benches on the premises, or one (1) parking space for each thirty-five (35) square feet of gross floor area. (d) Handicapped spaces. Handicapped spaces provided in compliance with State or local regulation shall be counted in determining the number of spaces provided in meeting the requirements of this chapter. Page 3 (e) Alternating uses. Where uses are required by this division to be served by off-street parking spaces, and where some of the uses generate parking demands primarily during hours when the remaining uses are closed, alternating use of the space is allowed, but only if specifically authorized by conditional use permit. Issuance of the permit must be supported by findings that the alternating use of such spaces will not result in the effective provisions of fewer off- street parking spaces than required by this division. The permit may contain such conditions as are necessary to assure the facts found will continue to exist, including: (1) Submission of satisfactory statements by the party or parties providing the proposed alternating parking, describing the users and their times of operation, and showing the absence of conflict between them; (2) Written agreements between the parties setting forth the terms and conditions under which the off-street parking spaces will be operated; (3) Documents showing maintenance provisions; and (4) Other documents or commitments deemed necessary. Whenever off-street parking spaces are authorized to serve alternating uses, the number of spaces required shall be based upon the use which generates the largest number required. (f) Properties in parking districts. Required spaces in parking districts shall be as follows: (1) For any building or open-air use in a public parking district, the number of required off- street parking spaces is: a. None, when the gross floor area of the building and open area occupied by a use, combined, do not exceed the area of the building and open area occupied when the district is formed; or b. When the area limitation in subsection (f)(1)a. is exceeded or the use is intensified, the required number is derived only on the basis of the excess area. (2) The creation of a parking assessment district relieves those properties located within the district which were nonconforming as to parking from having to supply on -site parking spaces in accordance with subsection (b). The assessment formula was based on a number of factors that included existing floor area, existing use, in some cases potential floor area and included credits for existing on -site parking spaces and for participation in past assessment districts. (4) The Planning Director shall develop a table using the floor area, parking and previous assessment district information used to calculate the parking assessment and translating that information into a parking credit based on the parking requirements set forth in subsection (b). When an application is filed to intensify the use within an existing building or to expand an existing building, this information will be used to calculate the amount of on -site parking, if any, that will be necessary to comply with the parking requirements set forth in subsection (b). Any parking spaces that are credited in the parking assessment district calculation may not be eliminated. (3) (5) Page 4 (g) Parking requirements for major additions to single-family dwellings. Notwithstanding the provisions of division 5 of this article of this chapter, any addition to a single-family dwelling as described below shall comply with the parking requirements set forth in subsection (c)(1) of this section: (1) An addition exceeding fifty (50) percent of the existing floor area; (2) An increase in the number of bedrooms; (3) A second story addition to a one-story building. (h) Exemptions. Compliance with subsection (c)(1) is not required if the deciding body makes the following findings: (1) If the site and/or structures on the site are subject to historic preservation pursuant to division 3 of article VIII of this Code and the Historic Preservation Committee determines that the enforcement of subsection (g) will impact the historic character of the site and/or structures on the site; or (2) The lot does not have adequate area to provide parking as required by subsection (c)(1). This finding is not required if subsection (h)(1) is made. If the deciding body makes the findings set forth above, parking shall be provided to the maximum extent possible. (i) Parking requirements for residential properties that are nonconforming as to parking with a Landmark Historic Preservation overlay zone. Residential structure(s) with a Landmark Historic Preservation overlay zone that are lawfully or unlawfully demolished as defined by sections 29.10.020 and 29.10.09030(h) of the Town Code, shall not be required to meet the parking requirements for new construction if no changes to the previously approved plans will be made except as determined by the Planning Director to meet current zoning and building code requirements. (Ord. No. 1316, §§ 3.41.010-3.41.075, 6-7-76; Ord. No. 1328, 8-2-76; Ord. No. 1349, 3-21-77; Ord. No. 1363, 8-1-77; Ord. No. 1375, 11-21-77; Ord. No. 1493, 3-17-81; Ord. No. 1546, 8-16- 82; Ord. No. 1652, 4-15-85; Ord. No. 1654, 4-22-85; Ord. No. 1657, 6-3-85; Ord. No. 1724, 5- 18-87; Ord. No. 1789, § VI, 5-15-89; Ord. No. 1854, § I, 6-3-91; Ord. No. 1945, § I, 6-7-93; Ord. No. 2083, § I, 5-7-01; Ord. No. 2149, § I, 5-1-06) N:1DEV\PC REPORTS 120161Restaurant Pricing Ord - Exh. 3 Redlined Prkg Ord Amend 29.10.150.docx Page 5 This Page Intentionally Left Blank