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Attachment 41 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 Planning Commissioners: Town Manager: Community Development Director: Town Attorney: Transcribed by: Mary Badame, Chair D. Michael Kane, Vice Chair Charles Erekson Matthew Hudes Tom O'Donnell Laurel Prevetti Joel Paulson Robert Schultz Vicki L. Blandin (510) 337-1558 LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 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: CHAIR BADAME: We're speed dialing along to our Continued Public Hearings, which is Item 2, Town Code Amendment A-15-005; consider amendments to Section 29.10.150 of Chapter 29 of the Los Gatos Town Code to revise required parking requirements for restaurants. Ms. Renn, when you have a moment, we'll be ready for your Staff Report. VICE CHAIR KANE: Madam Chair, may I interrupt for just one moment CHAIR BADAME: Yes, Vice Chair Kane. VICE CHAIR KANE: When you ask us if we've had time to review the Desk Items, folks may wonder how did we get through all that material so quickly, and I would point out that these are emailed to us in advance, and we have a complete set of the Desk Items if we printed it and then we had time to read it, so we don't ignore anybody's Desk Item; we've had it for a couple of hours. CHAIR BADAME: Thank you for that clarification. It's important that the audience know that we do do our homework. Ms. Renn, we're ready for you. LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 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 MONICA RENN: Good evening, we're here tonight to continue your discussion on the topic of decoupling seats and parking spaces in Los Gatos. The Council did consider this, and they asked for the Planning Commission's recommendation. The Planning Commission began their discussion in January and continued it to today to a special meeting. We have a very limited Staff presentation today. You did receive a Desk Item that has a chart. We tried to gather some information for you without calling out any restaurant by name, and Joel and I are both here to answer any question you have about that, or help the questions with the conversation. We do want to point out that the Council is looking for two things. First, your recommendation on do you think you'd like to see seats and parking spaces decoupled? If the answer were yes, what metric would you recommend is used? If the answer is no, then there is no second question for you tonight. That's concludes Staff's presentation. CHAIR BADAME: Thank you. Do Commissioners have any questions of Staff? Vice Chair Kane. VICE CHAIR KANE: I've read the report; I've even watched some of the hearings. I paid particular attention LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 3 to the verbatim minutes we receive from Town Council, and your report. I'm wondering if you could tell me why do we need this? I mean I've looked at the different numbers. They're similar, or they're dissimilar, or they're Fire Code. I'm thinking this must be a naive reaction, but if it ain't broke, don't fix it. What is broke about our current language on restaurant seats and parking, other than there are a lot of allegations nobody pays attention to it? That's not before us. I want to know as it is written and as it could be enforced. What is wrong with what we have, and what, if anything, could make it better? MONICA RENN: I guess I have two responses to that. As far as what is wrong with what we have, I don't think there is something that is necessarily wrong. When we started down this road about the different commercial issues back in September it kind of came under the auspice of two things. First, the Council had adopted an Economic Vitality Strategic Plan in which they grouped together a couple of things they wanted to see happen, and one of those things was to open up great opportunity for businesses to come into Los Gatos, to look at the ability LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 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 to have hybrid businesses, and to look at the ability for businesses to be flexible in their business model in order to create opportunity in town. So that was kind of where this all started. As we began to talk about different things, it became apparent that there are a lot of overlaps. One issue that came up for us was when you talk about seats, the whole world of seats has changed. When this code was written seats were either a chair or a booth or a barstool, and that was essentially all there was. Now there are couches, there are standing areas, there are all kinds of other ways that people congregate to eat, to drink, to visit, whatever it is, and that's just the way the marketplace works today. So the conversation that came up was how do we count a seat? Should it really be about how many people are safely in a business? How does a business run itself? Or should it be about how many seats? I've had several restaurants come to me over the period of the three years I've had this job to say they can have 20 seats, but their occupancy is 100, so they could hypothetically just serve food standing up, and they could hypothetically serve wine standing up, but as long as food is available, then they're doing what they're supposed to LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 5 be doing. So is that the atmosphere that we would want to see happen? And while it was an interesting and kind of a strong conversation that we had, I thought you know what? That is interesting. So that kind of started these conversations about what could we do to be more flexible to allow businesses to see what fits for them? That would be one of my responses. The other would be a conversation that we've had for a very long time, and people will say it all the time, probably 90% of our businesses have more seats at one time during the day or not, so I would also turn that question around and say maybe it's not working, maybe what we have in place is not working, because if everybody needs more seats to be successful, or if everybody needs to look at a different configuration, is it that possibly what we have in place doesn't work? I don't know if that answer is yes or not, but it's just a question that we started to talk about, and it came up through the Council, came up through the Policy Committee, and that's just something for all of you to think about. CHAIR BADAME: Commissioner Hudes. COMMISSIONER HANSSEN: Thank you for the report and the numbers; it's very helpful. A couple questions about how this would apply. LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 6 1 2 3 4 5 6 7 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 How do your comments apply to the downtown versus other areas in terms of the problems or the issues that you've seen? MONICA RENN: As far as too many seats, or as far as which issue, would you say? COMMISSIONER HUDES: You just described a situation in general for the Town. MONICA RENN: I would say Town -wide. COMMISSIONER HUDES: Based on that, do you also think —because I didn't see your recommendation —that there should be separate standards for downtown from other areas? MONICA RENN: The interesting thing about downtown is it's very much like the way traffic looks at a shopping center. There are very few instances where someone comes downtown for one thing. Yes, they can come just for dinner and leave at 7:00 o'clock at night, but it's most often that people do more than one thing, which is why traffic and stuff for shopping centers is different. It's almost if I come down and I have lunch and I shop, and I've only used one parking space, but that parking space has now been double counted for two businesses. Does it make sense to look at downtown differently? Maybe. That would be something that you could LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 7 all consider. Obviously with downtown there aren't necessarily onsite parking like there would be if you were in King's Court or somewhere else, so it definitely does make the circumstances different. CHAIR BADAME: One more, Commissioner Hudes? COMMISSIONER HUDES: Yeah, just related. How will any changes made here apply to the North 40, and will these apply to the North 40 Specific Plan and zone? Particularly in Phase 2 there's an allowance for a mall kind of a situation. Are we expecting that this ordinance would apply to the North 40? MONICA RENN: I don't believe it does, but I'm going to let Joel confirm that. JOEL PAULSON: The ordinance would not apply to the North 40. The North 40 Specific Plan dictates the requirements for the North 40 Specific Plan area. COMMISSIONER HUDES: That's what I thought. Thank you. CHAIR BADAME: Commissioner O'Donnell. COMMISSIONER O'DONNELL: Fairly recently we had people from the downtown community asking us to put in modifications to the Valet Ordinance, and the argument was we're so busy and we don't have enough parking, and therefore if we have a valet they could take it a little LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 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 bit further away, and so we really need that, and we said fine, you can have it. Now we're hearing to the contrary. We're not filling our seats, or maybe if we had more seats we could fill them. So I'm confused by that. The Council did give us an ordinance, I guess, on valet parking. To the best of my knowledge nobody has used it yet, but I understand they're still thinking seriously. One of the people I've talked to is talking about an $8 fee to do that, and I would say if you can't find parking, it's worth $8. So I'm confused. Secondly, we've said over and over and over again, nobody knows how many seats there are in Town. All we know is what your pieces of paper say, and your pieces of paper are related to reality, because nobody has ever gone out to check. We do know that on many, many nights traffic is terrible in the downtown, so we're saying we'll pretend like you're numbers are correct, and if your numbers were correct what would we do? I guess what I'm worried about is your numbers aren't correct. Almost every restaurant I've been in exceeds their Conditional Use Permit, which I don't mind; it's just that what's the point of going through what we go through? Then to carry it one step further, amend LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 9 these ordinances based upon facts that we all know are not correct. What would you do to have the correct facts? MONICA RENN: Is that a question, or are those comments for me? COMMISSIONER O'DONNELL: Well, it ended with a question. MONICA RENN: A couple of thoughts on that, and it goes back to my original comments about seats being different. Seats are mobile, right? You could go in at 11:00 o'clock when somebody opens and they could be right on their CUP. All of a sudden they get a party of 12 that comes in, and seats appear, and they make that 12 work. I think from my perspective and from a Staff perspective, to keep things safe you would want the Fire Code, and to keep things easiest on us and easiest to understand, I would say you would go with the Fire Code; it allows people to have the flexibility to accommodate that party of 12 that maybe has rooms at the Toll House or something. There are a lot of theories behind it, but I think that really there's no control over... We could go in four times a day and count, and the seats could be different. COMMISSIONER O'DONNELL: It's really not that sophisticated if you go in and find who has a bar that ought not to have a bar. You simply go in and count the LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 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 seats and find out there are far more seats than under the CUP, or far more tables. I'm not saying you should do this four or five times a day. You can go in any time you want to and count the chairs and the tables, and you can find out if they're in violation of the CUP. Now I'm not trying to get on the businesses, because it works, but I am saying your numbers are dependent upon facts that do not exist. The last time we were here everybody said that's right, we don't check them unless somebody complains. And yet, we have this chart, which is very helpful and I appreciate it, but it's... You know, you're talking about the Fire Code. If we follow the Fire Code you might as shut the Town down. The Fire Code is very unusual when it comes to allocating seats. The question I have is are you comfortable using figures that have no idea how many tables and chairs there are in the restaurants, and it relies only on assumptions or on use permits that we know are not accurate? Are you comfortable with that? JOEL PAULSON: I'll jump in. I'm not sure which numbers you think are inaccurate. There are the approved seats with the CUP, which is what's laid out here, and then there is the issue of whether or not that is how many seats LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 11 the restaurants have, so the information here is not inaccurate. Now, whether the reality in downtown is that there are more seats, that very well could be inaccurate, and I think we've heard that enough to all agree that it may be inaccurate. If you start adding seats to some of these, then some of these numbers will change, and they may change to actually go lower, and they will get much closer to fire occupancy code. We have for instance one business in here. Business A is currently parked at 15.03 square feet per seat. Fire occupancy is 15 square feet per seat. So we do have some businesses that are A) approved at fire occupancy, and B) that corresponds with the existing seats that are approved. We have not gone out and counted, but I would assume that any responsible business owner would definitely not go... Especially if you're at 15.03, you don't have a lot of room to add seats. Now, obviously some of the other ones you look at, they're higher, and so those seats, if you change these approved seats and say everyone has more seats, all these square feet per seat dining area numbers go down towards 15 per square foot. Now they may not all hit 15 per square feet, and we're not here saying that that's the number the LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 12 Planning Commission has to propose. It's really, again, back to the basic question: Should it be decoupled? I think it was brought up before by Vice Chair Kane that if we think the current requirements work, then we could move forward and that can be the recommendation. COMMISSIONER O'DONNELL: But what I don't understand is when you say they are accurate, if you define accuracy as being what a piece of paper says, then they're accurate. If you define accuracy as being the real world, then nobody knows. I mean at best nobody knows. My personal experience is I've sat up here when we've granted use permits, and I've gone in the restaurant subsequently and I know they're in violation, and I don't care, nice restaurants and all that. But I'm also downtown when I can always find a parking spot if I walk far enough and know where I'm going, but I'll just be going around and around. I think we have a traffic problem, but we don't have a traffic study that goes to what we're trying to adopt now. For example, bars. We have restaurants in this town represented to us that there would be no bar, and if you go into those restaurants you'll find there is a bar. Now, having six or eight seats at a bar that is not permitted of course isn't counted. LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 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 I guess I'm simply troubled by saying traffic is a serious problem in Los Gatos. Traffic is related to numbers of chairs and table; we don't know how many there are. We're being asked to change this. When I look at the pattern here, when I look at the required parking based on seats versus the required parking when we look at square footage, there's no pattern to it. I mean if you take A through J and you take required parking based on seats, A is 23.33. If you went on the instead of C, square footage, they wouldn't get that many parking spots; they'd get 15. And then if you take the bigger restaurant, which is I guess number I, that's a 6,611 square foot restaurant, you look at that, they have 72 required parking spaces. If you use the square footage, they get 29. So I'm not sure whom I'm helping. JOEL PAULSON: I'll offer a couple of things. One is for the parking column specific there are two numbers. There are two columns: one per 300, and one per 235. The first five outside the downtown, so that's kind of the basis on if you took the gross square footage of the suite, divided that by 235, here's how many parking spaces would be allocated to that at a minimum. The last five are the downtown, so you'll notice onsite parking, for instance, is zero for three of the five LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 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 of those. One has 11 where nearly 50 are required, and the other one is in a shopping center, and so there are none allocated. The downtown spaces, and I will clarify that every one of these restaurants has the required parking r onsite for the first five, because there are some centers that have extra parking, and so we keep tables for those, and they have extra parking and they've decided to allocate it for this business, for instance, or more than one of these businesses. The last five you either have the parking onsite or you're in the District, and so those are your Parking Assessment District credits, but all of them meet that requirement based on the number of seats that they have approved. That still doesn't get to your question of how many are out there, but that's the basis for the original approval of the CUPs. COMMISSIONER O'DONNELL: Does it strike you as at all odd when you say if you simply accept my definition of the world, it works; if you go out and see what the world really looks like, we don't know? ROBERT SCHULTZ: The world looks different every minute, so I don't think we're going to convince you, Commissioner, of any of this, so I'm a little bit the LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 15 exercise. Maybe I'd go back to what you said about the problem out there then. The Council is trying to tackle a solution. What would be your solution be to that? You said you don't have a problem with the extra seats, and I also live downtown and I work downtown, so I'm in this area. I don't even get in a car all week long, and so I see different seats... I differ from you. I can go in on a Tuesday night, and when I go in on a Friday or Saturday night, there are different seats. They change rapidly based on how many people are in. COMMISSIONER O'DONNELL: I do not see what the Staff has...why it bothers you to say we ought to have some real facts. Let me finish. ROBERT SCHULTZ: Which facts do you want? COMMISSIONER O'DONNELL: Simple real world facts, the ones we don't want to look at. I was told if we have a use permit we have no idea whether you're complying with the use permit unless somebody complains, and then it's you... Somebody said we go out and look. Now wait a minute. The argument tonight is please don't step outside of our numbers. We know they're wrong, or at least some of them are wrong, but it would take a lot of effort to find out the right numbers. I think that's the position, and if that's the case, one way to look at this is simply to look LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 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 at our sister cities and say if it works in Campbell, or if it works in Saratoga, why don't we just do that? And maybe that's what we'll end up doing, but I don't know how much effort it takes occasionally to find out whether a restaurant complies with its CUP. I think it almost unfair now, because for years I have watched what they've done, and they all look around and say well gosh, nobody seems to care, and I'm trying to make a living here, and they either add a bar, or they add some more tables, or they add outside tables, or they add a wrapping around the outside, none of which was on their use permit, and how do those seats exist? I don't think we have a clue. ROBERT SCHULTZ: Okay, so your answer for Council is to not approve the decoupling, and to start doing code enforcement and find out exactly where all the seats are located and determine which ones are outside their CUP. COMMISSIONER O'DONNELL: My advice for Council would be to know the facts before you take action. If you assume that the facts are not particularly relevant, then we can say assuming these were the facts here's what we would do, and with that caveat we can probably make a recommendation. But I just want it crystal clear that these numbers, I don't know the degree of accuracy of them in the LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 17 real world. That troubles me, but maybe that doesn't trouble the Council. JOEL PAULSON: And I'm not trying to convince any of the Commissioners. This is based on the facts that we could gather, which is the approved Conditional Use Permits, the square footages from the building permits for the dining areas for these ten businesses, and then doing some calculations to show you where those are. I'm not trying to convince you that this is reality from what's out there on the ground. COMMISSIONER O'DONNELL: I'm not criticizing you; I'm just exploring this. JOEL PAULSON: Okay. CHAIR BADAME: All right, I'd like to cap on Commissioner O'Donnell's sister city comments, so referring to Exhibit 2, Attachment 1, you've provided benchmarking on seating requirements using certain requirements and certain jurisdictions. In looking at what I would call the sister cities, there are ten of them, and at least eight of them use square footage. I don't see any that use Fire Code occupancy with the exception of the last six, which I don't consider sister cities or even progressive, and that would be Benicia, Sacramento, Simi Valley, Lompoc, Redding and LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 18 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 Grover Breach. So is there anybody in the local area that uses the Fire Code occupancy that you could find? MONICA RENN: We did benchmarking through a couple different areas. There is a planning network that we put an email out to all planners in California; that's why you got some of the information from far away cities. We also used the Silicon Valley Economic Development Alliance and some of the people who belong to that. We tried for probably four weeks straight with continuous questions and asking, and this is the information we got. JOEL PAULSON: I would just offer that maybe sister is too close, but cousin. Morgan Hill, the seats are limited to what's required by Fire Code. They have parking on square footage, but Fire Code limits seats. That's where we're talking about the delinking, and that's just the first one I got, just for your information. CHAIR BADAME: Thank you for pointing that out. Morgan Hill; I almost consider that apples or oranges, but Commissioner Hudes. COMMISSIONER HUDES: I had I think two just arithmetic questions, so that I understand. When I look at the column that says, "Square feet per seat in dining area," and I've been informed that the LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 19 1 2 3 4 5 6 7 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 fire occupancy is 15 square feet per seat, is that correct? Is that a fair comparison? JOEL PAULSON: Correct. COMMISSIONER HUDES: So there's only one that's close, and only one that would be outside of the permissible, and that's the one at 13.9. JOEL PAULSON: And the one at 13.9 is a little bit of an oddity, and I was trying to figure out where that was. The CUP was approved with 84, but when I looked at the building permit, the occupancy the area they had calculated as the dining area was a couple less, and so I think that's where the number drops below the 15. They couldn't possibly have even as many seats based on Fire Code for the building permit. They would have less than the 84 that were approved. The 84 is based on the 21 parking spaces that were allocated in the District for that space, so that's an oddity, frankly, just so you know. COMMISSIONER HUDES: So I take the average of that column, or the mean, and I know this is just a sample, but I get 24 square feet per seat. If we were to go to the Fire Code, then we'd be increasing the number of seats by the same percentage that we're going from 15 to 22, correct? Or from 22 to 15, so we'd be increasing the number of... If we were to adopt Fire Code we would be increasing LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 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 the number of seats permitted by somewhere around 60%, is that correct? JOEL PAULSON: You mentioned 24 and then you mentioned 22, so I think you said the mean was 24? COMMISSIONER HUDES: Correct. JOEL PAULSON: Okay. And so looking at this, then they're going to occupancy, and you're much more into the numbers, so I assume from 24 to 15, that change of 9 is 60%. I think it would probably be a little bit less if it's 24 or 22, but it's an increase nonetheless. COMMISSIONER HUDES: Okay, but that's the magnitude, 50-60%, something like that if we were to go to Fire Code? MONICA RENN: Yes. COMMISSIONER HUDES: Okay, thank you. CHAIR BADAME: Any further questions of Ms. Renn? Vice Chair Kane. VICE CHAIR KANE: Well, to the Town Attorney. I wanted to support your motion that we leave things as they are and enforce the existing language, which seems to be way out of control, and see if that helps with traffic and parking. On the other hand, Ms. Renn, if we did enforce the language we have, how would that affect vitality? I LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 21 mean Commissioner O'Donnell is okay with the situation, slippage here and there, but if we actually imposed the rules that we have, and that says something may be wrong with the rules, but if we impose the rules that affect vitality? MONICA RENN: I think we'd see a lot of businesses gone. They would leave. They can't cover their overhead. The cost of the buildings are high, the cost of food has risen dramatically, and the cost to have employees. I mean all of the cost of business continues to rise, and from what I hear the majority of them are independent business owners, and I think that they would leave. VICE CHAIR KANE: Then you are telling me that our rules are not very good. MONICA RENN: That's what I said earlier, yes. VICE CHAIR KANE: And I said if it ain't broke, don't fix it, and now I'm getting the picture that if we did what Commissioner O'Donnell had talked about, the Town Attorney had mentioned that would not be a good thing, so it is broke. MONICA RENN: I would also add to that that I think we've been trying so hard to change our message out there with current businesses, and always retention is our LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 22 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 number one thing, attraction would of course be second, that I think if we started going out and heavy handed doing a lot of code compliance with all of our businesses, it would completely ruin the relationship that we're trying to build. Not saying that they shouldn't be in compliance, but what I'm saying is as the liaison between the businesses, I believe from their perspective it would be seen as a negative thing. VICE CHAIR KANE: But you are saying that they shouldn't be in compliance. That's the message I just got, that if they were in compliance, they're in big trouble. MONICA RENN: I don't know if that's true or not. That's not what I meant to say. VICE CHAIR KANE: I thought you said they were going to shut down. MONICA RENN: I believe that you would see several businesses leave, yes. VICE CHAIR KANE: Additional question. In the minutes for the Town Council meeting of 12/15 you said that to get a sense of what the community wanted the Town Council is asking you to find out about this business. You contacted or sent out to 230 property owners and businesses to respond to what do you want and what's wrong, something LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 23 like that, and 14 responses were received? I'm paraphrasing, but what does that tell you, 14 out of 230? MONICA RENN: Is that a question or is it a paraphrase? VICE CHAIR KANE: Yes. MONICA RENN: We contacted the people who owned something in the Parking Assessment District and we asked them specifically about how they felt as a former Parking Assessment District owner, if they were okay with it being decoupled. VICE CHAIR KANE: You got 14 answers... MONICA RENN: That's correct. VICE CHAIR KANE: ...out of 230. What does that suggest? MONICA RENN: That suggests that those were building owners and not business owners. VICE CHAIR KANE: And they don't care? MONICA RENN: I can't answer that question; I don't know. VICE CHAIR KANE: That would be an assumption, possibly a safe one. Thank you. CHAIR BADAME: Commissioner O'Donnell. COMMISSIONER O'DONNELL: I see no reason why we should have a more restrictive parking rule than our LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 24 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 neighbors, but I'm trying to figure it out, because if I look at Campbell, for example, they have one space per four seats, or it says, "Out of downtown eating and drinking establishments, no drive -through, one space for three seats," and so on. And if I look at Saratoga, they have one space for each 75 square feet of floor area, so that's different; that's something that's different. My problem is the numbers don't really tell me what you're telling me, and I believe what you're telling. Clearly we have some people who are in business in town who would be unhappy were we to enforce what we have. Part of the reason we've been able to have what we have is when nobody enforces it, nobody complains, and then the people sitting on this side of the desk can really be tough, because nobody is going to pay any attention to it. That's not a very good way to run a railroad, so I guess I'm saying I'm not against loosening this thing up, but I'm having trouble figuring out how to do that. So if we said let's do the same thing Campbell is going to do, for example, because they always tell us how great Campbell has done, that is one space per four seats. Would that make people happy? I mean you're talking to the people. Do you think that would make people happy? MONICA RENN: I don't know. LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 25 JOEL PAULSON: And I would run into right now our current requirements for downtown are one space for four seats. COMMISSIONER O'DONNELL: The same as Campbell. JOEL PAULSON: Correct. Or we have one that's one space for every three seats if you have a separate bar. COMMISSIONER O'DONNELL: So Campbell does real well, notwithstanding they do the same thing we do? ROBERT SCHULTZ: You're assuming that they don't have the same problem, that they have a lot more seats in their restaurants and bars, which they do. COMMISSIONER O'DONNELL: Well, the people who appear before us often use Campbell as an example to us. So let's strike Campbell. Let's pick one of these seats that everybody thinks is best, that's what we ought to do. This is very difficult, I think, and I'm sitting here saying let's make it better for the people in town, but I'm having trouble figuring out what that means. We have one space for every four seats, and that apparently is something that people don't like. You could make it square footage, and the last time we talked about it we said a minimum would be 75 square feet. I notice that Morgan Hill uses 100 square foot, so you kind of drift around. LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 26 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 At the end of the day —I personally, notwithstanding my view of whether we enforce the law or not, set that aside —would like to get to a point where we're making a recommendation to the Council which would make the business environment here more attractive, but I'm not sure what that is, so I'm asking for a little help. ROBERT SCHULTZ: I'll try to give you the little help. Maybe go at a different route. You're looking at the existing CUPs and the existing businesses. Let's wipe the slate clean and you had no businesses and you were building a brand new town. The problem is when you deal with a CUP and seats that are based on parking you're going to have violations, you're going to have code problems. When you do it based on square footage, you make that determination at the front, how many parking spaces, and your square footage isn't going to change, you're not going to increase your square footage, so you're done with your parking requirements, and you're done with... You get your CUP, and now you're seats are based on a different... COMMISSIONER O'DONNELL: But I'm not opposed to that. I'm just trying to come up with a number. Let's assume we say we're going to change and take the new Town approach. I'm not hung up on seats. Square footage is fine. LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 27 -It's a question of how many square feet? This to me is sort of a question to you (to Commissioner Hudes), and I think to you. You've played with the numbers. You know there's a sense of unease with some of the people in town feeling maybe we're too stringent. So I guess I'm saying how would one per 75 feet, or one per 100 feet be? I have no sense of what does that mean? Is 100 feet good? Good being defined as something that the people who do business in town today, and will do business in the future, would feel like the Town really wants us here? COMMISSIONER HUDES: I looked at the numbers in the benchmarking requirements and I took an average, and I came up with one space for every 109 square feet. Did you do a similar exercise? There's a big range from one per 40 up to one per 200, so it's a big range, but that's the number that I came up with. Is that similar to what you're analysis is? JOEL PAULSON: We didn't do an average of the benchmarking list from the various square footages. I know you had mentioned that last time and I don't doubt your numbers. COMMISSIONER HUDES: I just did a calculation based on the numbers in here. CHAIR BADAME: Commissioner Erekson. LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 28 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 COMMISSIONER EREKSON: A question for the Chair. We have people in the audience, some of which may want to address us, so I kind of had a sense we were moving to the deliberation stage before we heard the public. CHAIR BADAME: Thank you, Commissioner Erekson. You are right on with that, and I suggest that we at this time invite comments from members of the public. I have one speaker card, and that will be Michael Strahs. Ms. Renn, thank you for your presentation. We'll invite you back up in a few minutes. MICHAEL STRAHS: Hi there, Commissioners and Staff. My name is Michael Strahs; I am a Town resident of the last two years. I'm here this evening though in my capacity as Director of Development for Federal Realty Investment Trust, best known in the area for Santana Row. In the Town we own Old Town Center, and operate King's Court, as well. Great respect for Staff. Staff here is very tough, but very fair. In this case, we would respectfully disagree with at least parts of Staff's recommendations. To us, the general decoupling doesn't make a lot of sense, but it is a little bit nuanced, so let me explain. In general, we're okay with the decoupling, so long as two guiding principles are respected, at least from LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 29 our perspective as one property owner, and that would be that in our estimations restaurants should have more parking than retail with a greater requirement, and generally speaking a bigger restaurant should have more parking than a smaller restaurant. It's actually easier for a developer and a property owner to understand early on in the development or re -tenanting process what the parking requirement will be when it's based on square footage. So we'd be fine with square footage, and square footage at least in our experience tends to be more common in cities, whether they're related to the Town of Los Gatos as sisters, cousins, or just acquaintances. So generally we'd be okay with that, but then obviously then the magic interesting part comes in: What is the metric? But so long as bigger restaurants have a greater parking requirement than smaller restaurants, and the requirement is greater than it is for retail, that seems to be to us the bigger issue. CHAIR BADAME: You still have time remaining. MICHAEL STRAHS: I would just make one other comment, and that's that at least at Old Town Center we have I think it's close to 150 of the aforementioned phantom parking stalls, so we have, at least by the code, LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 30 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 ample parking for that center. I would comment also that King's Court is sufficiently parked as well. CHAIR BADAME: Thank you, Mr. Strahs. We have a question for you from Vice Chair Kane. VICE CHAIR KANE: In your experience, what is that magic number? You are in favor of square feet. Ten, one hundred? What have you achieved in the past? What is the right number? MICHAEL STRAHS: Well, I don't know what the right number is. All I would say is that to me —and I think I mentioned this at the January meeting —the most common numbers that I've seen, or at least a starting point for restaurants, I would often be 10 per 1,000, which would be one space for every 100 square feet, and in retail a common metric, at least for City code, seems to be four. Now, there are two caveats to that that I didn't clarify in my last set of comments, and that is number one, there are often ways to reduce that through shared parking studies, or actual use studies. It's not a black and white metric in a lot of places; and number two, I would agree with Staff's comment that oftentimes downtown areas are treated very differently than a suburban product. My experience is more in the shopping malls type of a product than in the downtown context, but generally we still think LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 31 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 that restaurants should have greater requirements than retail. VICE CHAIR KANE: So you said restaurants, 100, and then you said retail, four. Can you convert the two numbers? MICHAEL STRAHS: Oh, I'm sorry. Retail would be four spaces for every 1,000 square feet, which would mean an equivalent number of 250 square feet per stall. That's just a metric. I mean that's just an example. VICE CHAIR KANE: Thank you. CHAIR BADAME: Any further questions? Thank you, Mr. Strahs. Our next speaker is Jim Foley. JIM FOLEY: Good evening, Jim Foley, 18400 Overlook. I've tracked this issue for some time. Generally I'm supportive of what Staff has put together. I think that the reality that everybody is really concerned about down here, and what's occurring downtown, does not reflect at all what the requirements are and what are in everyone's CUPs. I don't know if there's a process that people need to go through to verify that, but I think it's pretty much out there. There was a meeting on enforcement —I forget when it was, a year or two ago —when there was the discussion on LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 32 1 2 3 4 5 6 7 s 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 hiring somebody to go out and actually enforce the use permits, and this Council chambers was packed with every single restaurant owner downtown, and they were very worried of where that was headed, because for the longest time everybody had been operating under the yeah, we're not going to look into exactly what you have, and it appears to be working. I look at this in more of a global perspective. I don't know what the numbers are or what the reason is behind trying to look into these specific square footages or parking places per seats. It should all be about safety, in my opinion, so whether that's the fire department or whoever, whatever governing body and whatever is in place now as far as safety and occupancy, that should be what dictates a restaurant and how it can operate. There are different nuances. You're not going to be able to apply the same formula to each space. You're not going to say taking it from 15 to 22 square feet is like a 60% increase. There are limitations within each space as to where something can go, ADA concerns, and different things like that. I also think that if you were to decouple it, you're not going to see... The state of affairs right now is kind of in balance, right? So what I'm more concerned about LOS GATOS PLANNING COMMISSION 3/16/2016 Item ##2, Town Code Amendment A-15-005 33 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 are the people out there that are following the rules that are not taking advantage of what some of their competitors are, right? They're playing nice and they're playing good, and maybe they're on the brink of having to leave town because everybody else is really not playing by the rules. Whatever our neighboring cities are doing —I think I wrote it in a letter to you guys —I don't know what they're doing. I'm not sure I'm really concerned about what they're doing as what should we do? When did Campbell put that into place? Was it ten years ago, or was it last year? I don't know when they put theirs into place, or the last time it was looked so. In my opinion we just need to look at what makes the most sense, and I think it's getting rid of tying the seats to parking, letting the businesses succeed, and sending the message through economic development that Los Gatos is open for business. That plays into a lot of the things that may come before you or the Council soon, and it relates to how parking and seats are treated in restaurants. I really don't think that if that happens we're going to have gridlock in the streets and every parking space is going to be full. There are a lot of struggles downtown right now. Maybe on Friday and Saturday night between 6:00 and 8:00 LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 34 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 o'clock it's tough, but the rest of the time we're got a lot of empty streets during the evenings down there. CHAIR BADAME: Thank you, Mr. Foley. We have a question for you. Commissioner Hudes. COMMISSIONER HUDES: Thank you very much. I wasn't quite clear on your statement. Are you in favor of decoupling, or not, and is there a reason? JIM FOLEY: Yeah, I'm sorry. I'm in favor of decoupling. I think that what is in place now just doesn't make sense and it doesn't relate, and I think there are probably businesses that are suffering because of it. I think it's also a deterrent to certain new restaurants wanting to come into town and how they're going to approach that and do that, from being able to do it, and I generally just think it doesn't make sense and it should be based on safety. COMMISSIONER HUDES: Thank you. CHAIR BADAME: Commissioner O'Donnell, go ahead. COMMISSIONER O'DONNELL: Your position then is it's not based on any impact to traffic? JIM FOLEY: I'm sorry; it's not based on an impact to traffic? COMMISSIONER O'DONNELL: Traffic, yeah. I mean if it's safety, that's the Fire Code. LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 35 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 JIM FOLEY: Right. COMMISSIONER O'DONNELL: I mean I don't understand how you can say the requirement of parking has nothing to do with parking or traffic. If it only has to do with safety we can forget the streets, we can forget the parking. We can say as long as you can get people out of the building when it's on fire, the fact that they can't get to their car is another issue, but can you really believe that parking and traffic has nothing to do with what we're doing? JIM FOLEY: I do. I think the reality down there right now, the balance that's in place, it is not reflective of how the code is set up, and there is not gridlock, and there is not every parking space full all the time, and there are a lot more seats, a tremendous amount more seats and tables in those buildings that are on the chart that Staff has. I don't think you're going to see an influx of a tremendous amount of additional seats. I think you're going to see the code or the ordinances corrected and rebalanced, and then maybe a few additional seats and tables are allowed for somebody that needs them, or if a new restaurant were to come into town into a space that maybe formerly wasn't a restaurant, I don't think that maybe LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 36 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 those 10 tables or those 20 tables are going to create gridlock and a parking catastrophe in Town. I don't think it's going to be a noticeable change whatsoever. I think that generally just looking at what has gone on and occurred, and how a town evolves and how people function in town over time, this is just my personal opinion. I'm not a traffic engineer, and I didn't do a parking study, but my hunch is that you're not going to see a marked difference in traffic, parking, and the behavior of what goes on in Town by taking this away. COMMISSIONER O'DONNELL: Do you know how many parking spaces there are downtown? JIM FOLEY: I don't. COMMISSIONER O'DONNELL: Thank you. CHAIR BADAME: Vice Chair Kane. VICE CHAIR KANE: Could I sum up your remarks to say that you're in favor of decoupling and replacing that with Fire Code limits? JIM FOLEY: Yes. VICE CHAIR KANE: Thank you. CHAIR BADAME: I have a question for you, Mr. Foley. I'm looking at your letter, Exhibit 6, and it appears that you might also be amenable to square footage LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 37 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 based on the last sentence of the first paragraph. Is that correct, or am I not reading that correctly? JIM FOLEY: Generally from the standpoint of allocating parking, I'm just not so sure in the downtown and the way that it functions that retail and restaurant are so dramatically different, because of how many people visit different establishments and the way that parking is set up. So when you're developing a new building downtown, it's got some kind of a use associated with it and there's a parking requirement for how you develop that and what you have to bill for that. Something along those lines is fine, and I think that seats in the restaurants are unrelated; it should just be whatever is safe. A lot of it just stems from struggles that some businesses are having downtown, and what are we doing? We're trying to create some vitality, so take that barrier out, along with a bunch of other barriers that Staff is working on bringing up into our current times, some antiquated ordinances and policies that have been in place for the downtown a long time, on the precipice of the largest development occurring in the North 40 that we will have ever seen. LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 38 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 CHAIR BADAME: Any further questions for Mr. Foley? Seeing none, thank you, Mr. Foley. Our next speaker is Maria Ristow. MARIA RISTOW: Hi, Maria Ristow, 85 Broadway. I sympathize with Commissioner O'Donnell, because when I look at the Planning Commission, a lot of the times you are stuck making a decision based on facts or ordinances and what you feel is right doesn't matter, it's the rules you have to follow. I think one of the pieces of information that's missing, and I'm not sure of the best way to reach it, is you do actually have facts. The fact is how many approved seats are there? But that doesn't tell us how many seats are in each restaurant right now in actuality, and so we don't know, did it hit a steady state? Are the restaurants actually operating where they want to be? I'm wondering, is there some way to do an audit of those ten restaurants that we've got listed without code compliance getting involved, getting somebody from Staff or Economic Vitality go in there and actually count the seats? Is the restaurant feeling successful? How many seats are there right now? And look at that. Are the more formal restaurants really close to what they were approved at? Are LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 39 1 2 3 4 5 6 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 the most casual restaurants well above it, but below where the Fire Code is? I think there's a way to get that information, instead of saying we have this arbitrary number and we know it's not being followed, so we're going to put a new number, and we won't know if that's followed, and then you're stuck with these facts that don't meet with reality. I think an audit would make sense, just to say here are the restaurants that are doing well. Maybe check with the owners, see how they're doing. No one is going to get turned in, but how is the steady state working out? The other thing I'm wondering about is how does outdoor seating play into this? That was one thing I was kind of surprised it wasn't brought up, because if somebody has a certain number of seats allocated to them, and they want to put tables outside, often what's happened is they've got to take seats away from the inside, and that can be a disadvantage. If you've got neighborhood -serving businesses where people aren't driving, if they're walking, who cares how many parking spaces there are? I never drive to go eat —but I'm weird and I'm unique, and I'm provincial and I only go places I can walk — so I don't care if there's parking or not, but my friends who come and visit do, and they park at my house and walk LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 40 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 there. But I think there's a component of outdoor seating, and if we're starting to look at that, we may want to decouple it from parking spaces if we get to a more walkable town, but we have to find out what the right number is, and we can't do that if we don't know where we're starting. Then the last thing is ultimately people talk about a parking shortage, but as Commissioner O'Donnell said, there are parking spaces; people just don't know where to look. One of the things the Transport and Parking Commission is trying to work on is technology that will tell us which spaces are being occupied. We've got a pilot program. We're hoping to move forward over time and direct people to spaces. CHAIR BADAME: Thank you, Ms. Ristow. Questions? Seeing none, thank you very much. All right, our next speaker is Mr. Arzie. LARRY ARZIE: Larry Arzie, 1800 Overlook, a property owner in downtown Los Gatos. The regulations for tying seats to parking are no hidden secret when you go into the restaurant business in Los Gatos. You know what you're in for and it's part of your business plan. To change the regulations puts other businesses at a disadvantage. LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 41 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 As it stands, coupling seats to parking fairly provides parking for both restaurants and retail uses. That's the way it was designed when the Parking District was formed. We signed on to an agreement and were assessed millions of dollars to form the Parking District. To change the formula at this point gives one party more use of parking than his neighbor. Making it easier to add seats without adding or paying for more parking is just not equitable; it's not a solution for all. The request for changing the rules comes from restaurants and landlords to increase their bottom line, but not for their neighbors. I am a landlord of non - restaurant uses. What do my tenant and I get for decoupling seats for parking spaces? The shaft, that's what we get. More intensification and use of the Central Business District comes with a price, and it's not called vitality, it's called less available parking and more traffic. The regulations work, and until we build a new garage, it's the only fair thing that we can do. Decoupling is legalizing cheating. I had a friend come up to me who just recently opened a restaurant in Los Gatos about a year ago —I won't mention what it is —and said, "Larry, I don't understand. The Town has come down on us and wants us to change our seating." I said, "You know, LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 42 1 just put it in the back room and bring it out later. That's 2 what it's all about in Los Gatos." He says, "Yeah, but when 3 I did this, Staff lead me to believe that it was a wink- 4 wink situation, and that's how we operate in town." I'm not 5 lying. I'm not making this up. That's Los Gatos, and that's 6 how we operate. Thank you. 7 CHAIR BADAME: Questions for Mr. Arzie. Vice 8 Chair Kane. 9 VICE CHAIR KANE: Are you saying it's okay, or 10 are you being sarcastic? 11 12 LARRY ARZIE: No. There is no other solution 13 until we get a garage going. Now, Mr. O'Donnell wanted to 14 know how do we resolve this. I was mentioning to Maria is Ristow that we can do what was done in the seventies and 16 place a sundown ordinance on all retailing in Los Gatos, 17 restaurants, bars, whatever, and take away your use permit. 18 Your use permit ends on this day. That's how we got the 19 Parking District to begin with, with that threat. That was 20 a legal threat to shut us all down. 21 Or we could do the same thing with restaurants: 22 Come up with a solution or we're going to enforce the 23 regulations. That might just get us off our asses and form 24 25 a district and agree to start a new bond issue. LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 43 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 CHAIR KANE: Come up with a solution, or enforce the regulations. LARRY ARZIE: Say it again? VICE CHAIR KANE: What you said. I'm going to write it down. Come up with a solution, or enforce the regulations. LARRY ARZIE: That's correct. VICE CHAIR KANE: Sounds like a banner. LARRY ARZIE: I mean that was the threat that worked in the seventies, and we fell for it. We didn't get a single extra parking place, but we fell for it. VICE CHAIR KANE: Thank you. CHAIR BADAME: Commissioner Hudes has a question for you, Mr. Arzie. Don't go away. COMMISSIONER HUDES: Thank you, and I really appreciate your point that loosening up the regulations on restaurants could have a negative impact on retail, and I appreciate your background and perspective on that. I wanted to come back to the point that you made about people not complying. It seems as though you could have noncompliance either the way it's structured now, or with decoupling. Decoupling meaning having separate parking spaces per square footage and separate seats per square footage. Is there a reason that you think decoupling would LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 44 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 lead to more noncompliance, or could it exist in either one? LARRY ARZIE: It can exist in either one, because we're not going to take a tally of what the seats are. Forming a new parking district will make sure that we measure and count tables and chairs, and that will give us a correct basis for our assessment for the new district. The last time we measured and did it as number count was before we built the last garage. But basically, no, you're going to accomplish nothing more than the status quo by decoupling, and those who can cheat, cheat. COMMISSIONER NUDES: Thank you. CHAIR BADAME: Any further questions? A11 right, I am going to invite Ms. Renn back up to the podium for additional comments and for possible questions from Commissioners. Does anybody have questions of Ms. Renn? Commissioner O'Donnell. COMMISSIONER O'DONNELL: You've heard what I've heard, and I'm still wrestling with it. If we, for example, with the best of intentions, were to change it to "arguably" make it more lenient, and we don't know how many people are presently significantly in violation of what it LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 45 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 is, one could argue that you're not increasing it for them, because they're already up there anyway? I guess what I'm worried about is I hear retail saying don't hurt us, and I certainly agree with that. We come back to the same problem, and that is I hear restaurants saying we're all hurting, and yet they're the same people that wanted valet parking because there wasn't enough parking; that always strikes me as odd. So I guess I'm wondering if we were to take the square footage and we were to say either that... I like 100, it's a little bit rounder than 109, but whatever it is, 120 square feet or something. It isn't clear to me if maybe that would be good for restaurants. I don't know, maybe it would be. I don't know that it would be bad for retail. It's interesting when you've got retail saying, perhaps, don't change anything, and you've got restaurants saying change everything. There's no way in the world we're going to say the Fire Code is the law, that's it. I just can't believe we're going to do that, so I think if we want to "help" people, we need a square foot allocation. Now, you've read all this work you've done; it's a lot of work. Do you have any opinions on —take a number- 100 square feet, 150 square feet? Do you have any opinions on what would be perceived, or what you would believe would LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 46 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 help restaurants in Los Gatos —and we'll deal with retail in a minute —because we assume for the moment the people speaking for restaurants think this is a general and universal problem, and we know what we presently have with 100 or 150, but let's say 100, would that be a looser number, in your opinion? MONICA RENN: A hundred would actually be more restrictive that what we allow right now, so no, it would not be looser in my opinion. What I'm after —I'm not after anything personally, obviously —but I would say I'm working under the goal or the thought that we're looking for greater flexibility and greater opportunity. With that said, 100 becomes more restrictive, so I would anticipate looking at a number less than that. COMMISSIONER O'DONNELL: Okay. At what number do you see it being one, less restrictive, and two, therefore... I mean you've got a break even point that's neither more or less restrictive, it's the same, but if for the moment we say we're trying to be restrictive, when do you get to less restrictive on a square foot basis? JOEL PAULSON: I'll jump in just quickly, because there are a lot of variables. As you can see, even just through these numbers there are a lot of variables. Depending on the square footage you have, those things can LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 47 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 change. I don't know that there's a magic bullet number. I know Matthew had given you the mean, or the average —I can't remember which one it was —of 24 for these ten samples. So 24 is less restrictive then the 40 that we had in the chart. The absolute least restrictive is Fire Code for seats. So then we get to the mean or the average, which is 24, so that's a little bit more conservative than the 15, but even as you look through this chart you'll have some people that that would be an advantage for, and some people that that would be a disadvantage for. It's tough to say what the perfect number is, because it actually is different depending on the cases. That is a challenge, and I wish I had a perfect number for you, but starting just with 15 being the least restrictive, 24 with the average being less restrictive but will allow potentially for additional seats in some areas, even when you get to the 40 that's in this chart that you have, that's more restrictive than what we currently have today. The 40 gets to the traffic and your parking concern, so it's not actually providing flexibility, but it's providing a metric that is square footage rather than... COMMISSIONER O'DONNELL: Let me just add that I often (inaudible) Staff as a recommendation. Clearly apparently you don't have a recommendation tonight. But LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 48 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 since "decoupling" is the word of the evening, it's all well and good to talk about decoupling, but if you don't know what you're decoupling to, and when you can say well, that would help some, but it wouldn't help the others, we've now spent some time on this and I've tried to think about it. And again, forgetting retail. Just for the moment forget retail and just focus on the restaurants. It's very difficult to know what one can do, because we know some people would be benefited by it and some people wouldn't, and we also know if it's not enforced, heck, we've got the best system going. We tell them whatever we want to tell them, and they ignore us and they do what they want to do, and then they complain about it. I mean I find that amazing. JOEL PAULSON: And I just offer —which we talked about earlier —that even at the Fire Code occupancy for the dining area, we have a number of businesses that are already there, and two of them are on this chart. So no, it wouldn't be an advantage for those people, but that would provide the greatest flexibility for those who would be able to take advantage of that. COMMISSIONER O'DONNELL: All right, thank you for that help. LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 49 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 CHAIR BADAME: Commissioner Erekson. COMMISSIONER EREKSON: For me, before I can come up with an answer I have to really understand the question very well, so I've been trying to figure out what's the question. I want to try something and see. I mean I appreciate your answer earlier to the question, but I'm going to try to restate it potentially in a different way. This is going to be a question, but I'm going to do a description with a question of is this a reasonable statement of the problem? So I'll ask the question, but I have to state the problem. We're faced with an industry, the restaurant industry, or the food and beverage industry —I guess I'll make it broader —that has changed, and potentially using the word seats is the wrong terminology, because that's, I believe, ground in an old understanding of having a restaurant where people came in and sat down at a table or sat in booths and ate. That's where the origin of that came from, so the use of the word seats is probably outdated. So we're face with that industry has changed, first. We've been trying to reconcile three metrics, or maybe four metrics, or measures: the Fire Code occupancy, the CUP approved seats, the elusive existing seats, and then I would suggest a fourth one is what is the LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 50 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 appropriate maximum number of customers that should be allowed in a restaurant at a particular time? I obviously did not use the word seats intentionally. So we've been trying to reconcile those four things, with two of them being elusive to us: the existing number of seats, and what is the appropriate number of maximum customers that the Town should allow The Town could take the easy way out with the Fire Code occupancy, or could choose to set something that's lower than that. We've been trying to understand how that relates to the vitality of the individual businesses that are trying to operate food and beverages in this town, and they might argue to take the Fire Code occupancy, because that allows them to have a maximum number of people. I might say to them they need to be sure there's adequate parking and that they don't have traffic issues, and so simply using the Fire Code occupancy might not be the best number for their vitality —but that's an arguable question —but when we set that maximum number, how that affects their business vitality. Then we're trying to balance that with traffic 23 issues and with parking, and with the fact that in the 24 downtown area right now we have a static amount of parking, 25 and what the implication of allowing greater use, a greater LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 51 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 number of customers, would have for other uses in the downtown area. We're trying to figure out how would that affect them? It seemed like to me those are all of the things that we're trying to figure out, and then we also have to figure out how we set maximum number of customers and how we set parking requirements; those are ultimately the two things that need to be set. Is that reasonable? I tried to figure out what all the variables are that are affecting this, and then what ultimately we need to decide. I'm not sure we can come to an answer. Until I can clearly understand the question, I don't have a chance of figuring out an answer. So is that a reasonable statement of the problem? MONICA RENN: I would say that's a reasonable summary. The question I see is just do you have a recommendation for decoupling? Maybe you don't say yes or no, but I think that's really the question. I know that all of these things play into it, but really what we need to get to is a recommendation of a yes or no on the decoupling. CHAIR BADAME: Commissioner O'Donnell. COMMISSIONER O'DONNELL: Can I ask a question of Joel? I don't remember what the parking requirement is for LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 52 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 North 40, but there's an awful lot of land out there, and I'm sitting here thinking parking will not be as big a problem in the North 40 built out as it is downtown right now. Is that a wrong statement? JOEL PAULSON: No, that is a fair statement. COMMISSIONER O'DONNELL: Okay, so the worse the parking gets downtown, the more the downtown hurts itself vis-a-vis the North 40, and everybody is worried about the North 40. The way you solve that problem is to make parking intolerable down here, so everybody wants to go to the North 40. I guess I just throw that in, because one of the things we have to take into consideration is we are not living in a vacuum. We have the North 40, and I don't care what you do with the parking here, the consumer is going to go where they can park. They don't care whether you're full in your restaurant or not, they're not going to go to your restaurant if they can't park, so I just want to throw that in. The consumer is not represented here this evening, and that's part of our job that it is. I've listened to Staff, and Staff says decoupling, but then you try to figure out what that means and where you're going to go, and I haven't heard one credible answer. We have clarity, and that is if you want LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 53 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 to go to the Fire Code, and we've already heard that apparently somebody is in violation of the Fire Code as we sit here, which I find somewhat frightening. I think the Fire Code is crazy for the Town to use in trying to decide parking. It doesn't make any sense to me at all. But as I sit here also, and I say I think Staff is wrestling with a real problem and I don't think you folks have said we've got the answer. And that's fine; Staff doesn't have to have the answer. But on the other hand, we don't have the facts. Nobody has the facts, and we can simply deal with the numbers we have before us, but then I'm told well no matter what you do, somebody is already in violation of it, or will be in violation of it. I go back to what Vice Chair Kane said originally. It isn't so much of if it ain't broke, don't fix it, it's if you don't understand it, it's like the first thing, physician, do no harm, and I don't know if we make it better by doing something if we don't understand it. ROBERT SCHULTZ: I'm going to go back to my scenario, because I think it really does separate it, and because it seems the whole discussion is the current businesses, whether they're in violation and how many seats they have and don't. Go back to the situation. When it LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 54 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 comes in front of you right now, the business, and you see the plans in front of you, the game is on by them. They show you where the restaurant is, they show you where the seats are, and they match up the seats to the amount of parking and you know it, you've seen it. They show the tables 10' apart from themselves, and show three tables and go this is our seating arrangement. So, that model does not work in any town and city. You can say Campbell is working. It's not. They're not seating their seating requirements, because it's happening. The developers and the applicants know that, and so we can enforce it and go one -by -one. In my opinion, they'd probably go, "I'11 take the hundred dollar fine by having the extra seats in here. Come fine me the hundred dollars, and maybe you won't catch me that night and maybe you will," so it's just a game they'll play. By decoupling the seats to the parking and instead putting it in the square footage, that allows that calculation when it comes to you. Don't look at the past ones. A new one comes to you, you know exactly how much parking they have to do, and you're done with it. You're done with the assignment of the parking. Now, the next question is what's that magic number for the square footage? I don't know that. I do LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 55 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 respect the comment that said certainly restaurant has to be higher than retail. I think we all say restaurants use more parking than retail, and that's the magic number you can look at. Maybe you don't have enough information for that, but that's I think the situation we're trying to fix: the model that currently works. Time and time again applicants come in —I can name ten of them in the last two years —where when you look at where their seating is going to be, you can just say that that's not going to be what turns out. That's what we're trying to eliminate. COMMISSIONER O'DONNELL: Let me just respond by simply saying that we're going to take the rule as it is, and if people have more seats than they should, we're going to ignore that. And then we say, but going forward we're going to have an easier role. We're not going to go figure out how these people back there will be 98% of all the restaurants in town for the foreseeable future, but the 2% coming in, we're going to have a very simple formula and they can all figure it out, and then we're not going to enforce it. What we've got now is a situation where it's everybody does their own thing. They ignore whatever the heck we did, and they know what's best for them to make a dollar, except they come here and tell us because of our LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 56 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 restrictions they're having trouble making that dollar. That's the whole thing I find very, very confusing, and that's why I say I have not yet heard a good solution to a problem which I think one speaker said is almost restaurant -specific. When we look at your numbers, it's clearly restaurant -specific. So yeah, we could decouple it and we could come up with a number, whatever that number is, forty square feet, whatever you want, but it apparently is only going to apply prospectively, not retroactively. I don't know how many restaurants we get a year, but you've got to believe that 90% of all the restaurants we have are going to be 90% of the restaurants we have for quite a while, so part of me wants to wait and see what happens with the North 40, because I haven't heard a good solution yet. We could pick a number. We could put a dartboard up there and put square footage down and hit a number. I don't understand how that makes it better. CHAIR BADAME: Thank you, Commissioner O'Donnell. I'd also like to wait for the parking garage that we hope comes to North Santa Cruz Avenue. But along with the comment I just made, I know Vice Chair Kane, followed by Commissioner Hudes, had their hands up, and then Commissioner Erekson, so in that order. Vice Chair Kane. LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 57 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 CHAIR KANE: The Town Attorney underscored a salient point that I think, gentlemen, we need to keep sight of. Fellas, Commissioners. COMMISSIONER O'DONNELL: We're hanging on your words. VICE CHAIR KANE: This applies only for the future, as Commissioner O'Donnell just said, so if we put something restrictive, and actually enforce it, then restaurants may not want to come in, and that would preserve spaces for retail. So that might be the retail side of the argument. But it is only going forward. It doesn't at all address what's going to be red circled or grandfathered, which is 100% of what we have right now. I'm as confused as Commissioner O'Donnell and on a number of points. Cynically, it doesn't matter what we come up with if folks don't comply with it. It doesn't matter how many stalls you have in the barn if the horses don't have to come in. I think Yogi Berra said that, or if he didn't, he should have. That may not be before us, but Counselor, isn't that the issue? This applies to new stuff, not to the 1000 of the stuff we have, which is allegedly way out of compliance. LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 58 1 2 3 4 5 6 7 8 9 10 11 12 13 ROBERT SCHULTZ: That's correct. VICE CHAIR KANE: And Mr. Arzie says if you do do this, you've got to remember there are, his word was "cheaters," and what he was saying by that is the people who do comply are getting hurt, and the people who don't comply are having more fun. To me, maybe that's not what Town Council asked for or what you're talking about tonight, Ms. Renn, but I just think that's the most important point before us. Are we hypocritically coming up with news laws, and the old laws aren't complied with? And why should we think the new laws are going to be complied with? 14 ROBERT SCHULTZ: Because the parking is assessed 15 at the time of your application by a square footage, and so 16 there's a calculation made and that's how many parking 17 spaces you have. Then you're regulated elsewhere by the 18 number of seats. If you look at the examples in Palo Alto 19 and other areas, they don't count seats. You figure out the 20 calculation per square footage, and you can be more 21 restrictive than we already are. 22 There are two issues. There's one for economic 23 development and vitality and all those things to make 24 business prosper, but I'm looking at it more from a legal 25 and a code enforcement standpoint, and doing seats per LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 59 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 parking is an antiquated, out of date, way to establish your parking requirements. VICE CHAIR KANE: That was going to be my comment. I think I heard you earlier say the CUP methodology that we have right now is grossly out of date, and we ought to come up with some sort of a square figure number. Which one? CHAIR BADAME: That's the dilemma. That's the conversation. ROBERT SCHULTZ: We currently have 300 square feet for retail, so certainly in my mind it has to be below that number. VICE CHAIR KANE: And what about restaurants? ROBERT SCHULTZ: That's what I mean; that's for restaurants. It has to be below the square footage for retail. VICE CHAIR KANE: So 200? ROBERT SCHULTZ: It could be 200, it could be 100, or it could be 50, whatever. I don't know that answer; I really don't. CHAIR BADAME: All right. Commissioner Hudes. COMMISSIONER HUDES: Conceptually, when I think about this and my responsibilities as a Planning Commissioner and looking at land use, I think there are LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 60 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 some things we need to balance, and I think we need to balance the vitality of the downtown. Not looking in the rearview mirror, but looking ahead toward significant development in the North 40 that is going to threaten the viability of downtown. I think within downtown we also have to look at the balance between retail and restaurants, and I think that the best we could do is no harm, meaning let's not disturb the existing situation so that we end up with a lot of restaurants driving out retail, or vise -versa. When I look at this I think there is a lot of value in providing a more objective standard that we have a chance of enforcement going forward that allows the downtown to thrive. Now, the issue is we're trying to come up with a number without the data that I would love to have, but we have to I think put a stake in the ground without that. Conceptually, where I am is that I think it makes sense to decouple. I think it makes sense to start with a number like one space per 150 square feet, and I know other communities that we looked at are at one space per 100 square foot on average, but I think that we don't want to constrain our downtown at this time when there is this possibility of threat from the North 40. So for me, I'm LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 61 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 thinking 150 maybe, and certainly not 100, maybe 120; but I'm thinking about 150. CHAIR BADAME: Vice Chair Kane. VICE CHAIR KANE: You said 150 on restaurants, 300 on retail, is that what you said? COMMISSIONER HUDES: Only talking about restaurant on the 150. VICE CHAIR KANE: Well, what would you do with retail? COMMISSIONER HUDES: I think I would leave it at the 300. VICE CHAIR KANE: I just wanted to clarify those two numbers, because I want to ask you, are you prepared to make a motion? COMMISSIONER HUDES: I'd like to hear from Commissioner Erekson, because I know he wanted to weigh in on it as well. CHAIR BADAME: Commissioner Erekson. COMMISSIONER EREKSON: I'd like to introduce a motion for the Commission. I would move that the Commission make a recommendation to the Town Council to amend the code that we've been talking to unlink seating from the parking requirements for restaurants; and that the Commission continue this item to a future Planning Commission meeting; LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 62 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 CHAIR BADAME: Do we have a second? Seeing none, 16 the motion fails. and ask the staff to provide us a specific recommendation for the metric that should be used to set the maximum number of customers that a restaurant would have in town, and what standards the Town should use for calculating parking requirements for —I guess I would generalize —food and beverage establishments in town; and that the staff when preparing those recommendations for our consideration would take into consideration everything they've heard and give us their best professional analysis of the situation, and they gather whatever information they need to make a professional recommendation to us; so that we can be informed by their analysis and everything that we've discussed. 17 I have a quick question for staff before 18 Commissioner O'Donnell speaks. Would it be p possible for 19 staff to even provide these studies that Commissioner 20 Erekson was referring to? 21 JOEL PAULSON: Well, if by studies you mean going 22 out and counting restaurants for some of those, potentially 23 parking, what basis we would have for parking for 24 restaurants and some of the other metrics for how many 25 customers they would be allowed, some of those things, I LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 63 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 think customers goes to occupancy. So that would be, again, a similar starting point for seats based on parking, that the one for 15, that's the maximum customers that can safely be in there pursuant to Fire Code. We can definitely come back with some stronger recommendations on these various items. I think our initial recommendation was to use the Fire Code for seats. Obviously there were some conversations about changing the parking requirement for restaurants, which Commissioner Hudes was speaking to, making that stricter than the retail, which makes sense, and that it's what metric we use for the seats, and so coming back with some additional information is possible. I think just from a clarification standpoint, if it had gone forward with a second and then to a vote, it was recommending that it be decoupled, but it sounded like there was still work to be done before we could send that to Council, which is fine, and so that would be going to a date certain. CHAIR BADAME: Okay, thank you. I'm looking to Commissioner O'Donnell. COMMISSIONER O'DONNELL: I really have two questions. LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 64 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 One, when I heard the Town Council talk, one of the things they talked about was when people come in and they want to put a restaurant in, and they have to pay a parking fee, and the parking fee is set based upon whatever the ordinance tells us it is. Now, does that only apply to downtown? JOEL PAULSON: I think you mean the traffic impact fees? COMMISSIONER O'DONNELL: I don't know, I was responding to what he was saying. ROBERT SCHULTZ: That's a whole nother... COMMISSIONER O'DONNELL: So it's just a traffic fee? ROBERT SCHULTZ: Yeah. That's a whole nother discussion, and that's where this parking per seat comes in. It can still happen with square footage, but at least you have a defined amount. What happens is they know how many parking spaces they have; it's grandfathered in in the downtown. Then they realize how many seats they can have, so then they don't have a bar under your scenario to show they're meeting the seating, and then they put the seats in afterwards. If it's done by square footage, it's done, and they're either going to be able to make that square footage LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 65 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 and have the parking, or they're not going to be able to have it and can't do it. In those scenarios, most jurisdictions then have what's called parking in lieu. We had the Assessment District where you could buy the parking to put in, and the goal is that money is to be used for providing parking, and that doesn't always happen. But usually you can just do a parking in lieu fee, what many jurisdictions have, but we don't have that COMMISSIONER O'DONNELL: But the traffic fee you also now just talked about only occurs if in fact a study, I guess, shows an impact, or just in general? JOEL PAULSON: It occurs whenever there's a change of use that has a higher traffic generation rate. For instance, if an applicant came in and wanted to increase their seats —they had the parking, met all of our codes —above and beyond what they were originally approved for, then they would pay a traffic impact fee based on those number of seats and that traffic that would be generated by that. COMMISSIONER O'DONNELL: But with square footage that's never going to change, I mean unless they change the building, so whatever the square footage is, they're going to pay... Well, I don't know what they're going to pay on a traffic study. LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 66 1 2 3 4 5 6 7 8 9 10 11 JOEL PAULSON: There are two metrics that can be looked at for traffic, and that's trips per seat, and trips per thousand square feet of gross floor area. After talking further with the traffic engineer after our last meeting, most of the time he uses the seats, so the approved seats is really what the traffic fee gets based on, and so that's where there is an opportunity if someone came in, for instance, and asked for additional seats. They would have to pay to delta from what was previously approved and occupied... 12 COMMISSIONER O'DONNELL: But when the new person 13 comes in, the only thing they tell you is how many square 14 feet they're going to have and there's going to be a 15 restaurant, and you don't really care how many seats 16 they're going to have under that scenario. How do you set 17 the fee? 18 19 20 21 22 23 24 25 JOEL PAULSON: Depending on where you go, you have two things. I'll try not to be confusing with a lot of different conversations going on, but you have how much parking should be required for the square footage of the tenant space. Staff's proposal was to use the same one as retail, which is one per 300 square feet. That would generate your parking requirement. LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-00S 67 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 There are other metrics that could be used. The one per 150, one per 100, one per 200, so there we have the parking. So then if we decoupled the seats for parking and said, let's just use 40 for instance, just for discussion purposes, one per 40 square feet, we would take the dining area of that proposed restaurant, divide it by 40, and that would tell you how many seats you could have. Those seats would be multiplied by the average daily trip rate, and then that's how the fee would be derived for a traffic impact fee. You still would be getting a seat count that would just be based on that one per 40, or one per whatever number, 24 or 15. COMMISSIONER O'DONNELL: Even though we've said maybe there won't be any seats, maybe the people are going to be standing? That's one of the things we were very concerned about. So now to set the fee we're going to pretend like there are seats, is that it? ROBERT SCHULTZ: Or another subsequent would be to change the traffic fee based on that 1,000 per square feet. JOEL PAULSON: Hypothetical: Someone comes in with a restaurant, no seats, zero seats. We would use the 1,000 square foot gross traffic generation rate to calculate that fee. LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 68 1 2 3 4 5 6 7 8 9 10 11 12 COMMISSIONER O'DONNELL: I had one other question, and that was earlier on this evening I thought I heard you to say if you used 1,000 square feet for a restaurant that would be more stringent than what we presently do, is that correct? JOEL PAULSON: That's correct. The one per 40 square feet for the dining area is more restrictive than what we currently have. The higher number you do, the more restrictive it is. COMMISSIONER O'DONNELL: Retail was one per 300? JOEL PAULSON: In downtown, correct. 13 COMMISSIONER O'DONNELL: So if we were to use one 14 for 200, for example, it would be considerably more 15 restrictive than we presently have, and that certainly 16 shouldn't make the folks that are pushing this happy. 17 JOEL PAULSON: That's correct. 18 19 20 21 22 23 24 25 COMMISSIONER O'DONNELL: It's for new the people. JOEL PAULSON: It is for the new people. COMMISSIONER O'DONNELL: Even the people that aren't going to be impacted, arguably. We've heard from some representatives of the downtown restaurants this evening, and one of the arguments is we should use the Fire Code. Well, that's a lot less than 100 square feet, and so if our solution to this problem is to say 200 square feet, LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 69 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 not sure what we've accomplished. If somebody wants to say 40 square feet, at least you're less restrictive than you are now. Some of these people are not in compliance with the 40 square feet, is that right? JOEL PAULSON: Currently the 40 square feet, the list of the ten samples, they all comply with 40. The highest is 37.33, so that's why I tried to explain before, from an impact perspective, just seats to square footage, the higher the square footage per seat the more restrictive it gets, and even one seat per 40 square feet is more restrictive than we currently have. COMMISSIONER O'DONNELL: And the Fire Code was 15 square feet? JOEL PAULSON: Correct. COMMISSIONER O'DONNELL: Okay, thank you very much. CHAIR BADAME: Commissioner Hudes. COMMISSIONER HUDES: Just to clarify, Joel, in terms of the way that you are framing this, there are really two numbers. The first number is the number of spaces per square feet in the restaurant. JOEL PAULSON: For parking. COMMISSIONER HUDES: For parking. One parking space per square feet. LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 70 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 JOEL PAULSON: Correct. COMMISSIONER HUDES: The second number is the number of seats per square feet in the dining area. JOEL PAULSON: Correct. COMMISSIONER HUDES: I appreciate Commissioner Erekson's explanation. Does that change anything where he described maximum number of guests versus seats? Do you have a preference between those two? JOEL PAULSON: Frankly, I don't know of any jurisdictions that use maximum number of customers in that instance, but that doesn't mean that we can't look into that and see if there are others. I think for me it gets to the bottom line of the maximum is one per 15 square feet, because that's the maximum people, whether they're sitting or standing, that could occupy that space in the dining area or bar or eating establishment. COMMISSIONER HUDES: In my mind, if we move to decoupling we need to address both of those sets of numbers. JOEL PAULSON: Correct. COMMISSIONER HUDES: Okay, thank you. CHAIR BADAME: Commissioner O'Donnell. COMMISSIONER O'DONNELL: Assuming for the moment that we're ultimately going to come up with a motion, and LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 71 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 not sure that's the case, it sounds to me like if one wanted to address the concerns of what I'll call the restaurant —industry is too big of a word —but industry group here in town, you've got to be like 40 square feet or less, otherwise why are we going through this exercise? And I'm not saying we should go through this exercise, but if we were to try to address the problem, we'd say 40 square feet or less. And then to address retail, of course, I guess that addresses retail too. If you're talking about square footage, how does that apply to retail? JOEL PAULSON: We are proposing that retail stay the same. For downtown it's one per 300 square feet; outside downtown it's one per 235 square feet. Staff's initial recommendation was that parking be based on the same retail component, which is the one per 300 for retail as well as restaurants, and so it would have no change there. As you start lowing it, then yes, it's more restrictive than we currently have from the parking perspective. COMMISSIONER O'DONNELL: And the final comment was since we arguably are not in compliance in many instances —and I'm not making a moral judgment on that, we just aren't —I don't see any point in simply memorializing a more stringent standard when in fact people are not in LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 72 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 compliance with the lesser. I guess they're all arguably in compliance with the 40 square feet or thereabouts. So if we were to say we're going to be the good guys and make it 100 square feet, we're merely raising the number of people who are not in compliance, and I don't know how that helps anybody. Okay, thank you. CHAIR BADAME: Commissioner Hudes. COMMISSIONER HUDES: I'm going to venture a motion to decouple, to require one parking space per 150 square feet for restaurants, to leave retail as is —so there are two different numbers in different areas; I don't think we need to address that —and to require that the maximum seats are one per 22 square feet of dining area. In no case said seating should not exceed the Fire Code. Do I need to make further findings with that motion? CHAIR BADAME: I'm sorry; can you repeat your question? JOEL PAULSON: (Inaudible) recommended in the plan. COMMISSIONER HUDES: Okay, thank you. CHAIR BADAME: Commissioner O'Donnell. COMMISSIONER O'DONNELL: I'd kind of like to have that motion either read back or restated. It's a mouthful LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 73 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 for me, and if we're going to vote on it, I'd like to understand it a little better. So which would be easier? COMMISSIONER HUDES: I'd love to hear Joel read it back. JOEL PAULSON: Sure. The motion was to recommend decoupling parking from seats, require that the parking requirement for restaurants be one space per every 150 square feet of gross floor area, and that the maximum number of seats for the restaurant will be determined based on one seat per every 22 square feet of dining area. COMMISSIONER O'DONNELL: I don't follow that I guess is my biggest problem, so I don't understand the two numbers then. Could you help me? COMMISSIONER HUDES: Sure. I think when you get to decoupling, then you have to actually provide both numbers. The first number is the number of parking spaces required for a certain square footage, and that relates back to the traffic assessment. The second is the number of seats per square footage of dining area, and where staff has recommended going with Fire Code, which is one per 15. They've also put a column in the chart of one per 40, which are pretty far apart. I think the number more appropriate is closer to LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 74 1 2 3 4 5 6 7 8 9 10 11 12 what I think the average is for the actual approved seats, and I ran the numbers on that, and the average on that is about 22 to 24, so I chose arbitrarily 22. COMMISSIONER O'DONNELL: So the first calculation, you take the square footage and you say based on that square footage so much parking is required? COMMISSIONER HUDES: Yes. COMMISSIONER O'DONNELL: And the second number you use you say so many seats are allowed, notwithstanding we may not have any seats? COMMISSIONER HUDES: Yes. 13 COMMISSIONER O'DONNELL: So it doesn't speak to 14 the issue of what if we don't have any seats? 15 COMMISSIONER HUDES: It doesn't. 16 COMMISSIONER O'DONNELL: So that would by default 17 go to the Fire Code? 18 COMMISSIONER HUDES: Yes. I also included in my 19 motion that in no case should the Fire Code be exceeded. 20 CHAIR BADAME: Do we have a second? Vice Chair 21 Kane. 22 VICE CHAIR KANE: I'll second that. 23 CHAIR BADAME: All right, discussion. I will not 24 be supporting that motion. I'm looking to the Planning 25 Commission Staff Report dated March 16, on page two at the LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 75 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 lower portion of the page, concerning traffic impacts, and it appears that that ratio will create additional traffic impacts. VICE CHAIR KANE: To the Chair, what ratio, the 40? CHAIR BADAME: The Staff Report says 40. VICE CHAIR KANE: Then the maker of the motion, can we amend that to 40? COMMISSIONER HUDES: The issue is that if we went with 40 the approved seats would be very, very different from what we would allow in the future. I looked at the number, and again I came up with the difference between the allowed seats at 40 and the approved seats, you can see that. So it would be 26 as compared to 70 for one. The number of seats allowed under the new measure would be about half of what we've currently approved, based on my reading of that, which is why I'm recommending a less restrictive number. I understand that there will be potential parking issues, but I also think that some of that kind of regulates itself. I also want to really protect the downtown against the onslaught of restaurants and other businesses in the North 40, and I think it will force the LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 76 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 issue on providing additional parking to level the playing field between the North 40 and the downtown if we do that. COMMISSIONER O'DONNELL: Could we hear from Staff on the point you raised from that report? CHAIR BADAME: Certainly. JOEL PAULSON: Thank you, I was going to offer to step in. When Staff looked at the per seat trip generation versus the trip generation for 1,000 square feet, we ran a calculation that said how many of the per seat traffic does it take to reach the per 1,000 square feet, and then divide that by a number of seats, and then you end up with the number, the highest of which, the most conservative of which, was almost 40. Any additional seats —and I know we've had this conversation before —could potentially add traffic. The question is when they come in they'll be paying for what those seats are, so they'll be paying a higher traffic impact fee. The question is, is it a significant impact or not? No traffic impact is one per 40, because those equal whether you're using per seat or per 1,000 square feet. But there is the opportunity for a per seat number to be used less than that, they would just have to pay that traffic fee; it doesn't trigger a significant impact. The significant impact triggers, and you see this LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 77 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 in your Mitigated Negative Declarations and your EIRs, they do a traffic study, it generates thousands of trips, and we've got to do these mitigations. These mitigations either meet all of those and make them less than significant, so they're still not significant impacts but they're still impacts, or there is a point where you just pay traffic fees, and so you've mitigated that impact. COMMISSIONER O'DONNELL: If we set the number too low, are we triggering an obligation on our own part to satisfy CEQA? We're recommending, we're not adopting, but if we were to recommend the adoption of an ordinance that in and of itself might have a significant adverse impact on the environment, then we would trigger CEQA. JOEL PAULSON: I would recommend that if this motion goes forward and passes, that the direction for Staff would be to clarify that prior to Council taking action, and so we'd make sure that that is clarified. CHAIR BADAME: All right, so we have a motion and a second. Is there further discussion? Commissioner Erekson. COMMISSIONER EREKSON: I'm trying to be sure I understand where the 22 came from. It was the arithmetic average of the sample that we were given, is that right? LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 78 1 2 3 4 5 6 7 8 9 10 11 12 COMMISSIONER HUDES: Yeah, it was the equivalent to the approved seats of the ten businesses that were sampled. So if you looked at the ratio of approved seats per square footage, it came out to 22. JOEL PAULSON: That is the next to last column in Attachment 7. The square feet per seat in dining area, the average of that is 22. COMMISSIONER EREKSON: So we use an average of a non-random sample, is that correct? JOEL PAULSON: Yes. COMMISSIONER EREKSON: That was a rhetorical 13 question. 14 15 CHAIR BADAME: Commissioner Erekson. COMMISSIONER EREKSON: I can't support a motion 16 which is generating a metric based a non-random sample. 17 Using a metric based on a non-random sample is as good as 18 pulling a number out of the air, so while it might be the 19 right number, there's no evidence from public testimony, 20 testimony of my Commissioners, or the Staff that would give 21 me any confidence in that number. 22 CHAIR BADAME: Commissioner O'Donnell. 23 COMMISSIONER O'DONNELL: Let me say this, I think 24 25 that comment is well taken. On the other hand, I think the LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 79 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 motion attempts to solve what I almost felt was an unsolvable problem earlier, so it gives me some optimism. Let's assume for the moment that the motion doesn't pass, because for example if I don't go for it, it's not going to pass; simply by counting, that's all, not because of me. But it's possible we could take the motion and ask Staff to deal with the motion, because the one concern over here is the random aspect of it, but another concern over here is a concrete example which is unrelated to mathematics as such, but it still is to me a good attempt to deal with the problem. But I'm not going to support the motion as it is, but I'm certainly not rejecting it out of hand. I'm wondering, if it fails whether it would be... This is really to Staff, to say could you be helpful in dealing with the spirit of that motion and try to help us to adopt something like that which would one, deal with the randomness, and two, deal with the Chair's concern from the prior report? CHAIR BADAME: The maker of the motion has his hand up. COMMISSIONER HUDES: I have an idea. I'm not sure of parliamentary procedure on it, but I would be more comfortable if we didn't have all of these moving numbers, LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 80 1 and so I would be more comfortable to have the motion not 2 be a recommendation to Council, but to be a working point 3 for Staff to use and come back to us to tell us with a 4 little bit more certainty than we have now what the impacts 5 will be, whether they will trigger CEQA, and whether it's a 6 viable solution for the Town. 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ROBERT SCHULTZ: My suggestion would be this, because Council does want to get this back, is if there is agreement at least to the decoupling I would say then the recommendation should be there's not enough information to establish what that square footage would be and let that go to Council. Let's see if there's a majority that even want... They're going to have the same discussion you had, and they might not want to do any of the decoupling either, and let them decide whether they want to bring it back here or want to use that square footage and not dwell too long on it. COMMISSIONER O'DONNELL: The question I have is whether we should adopt a motion that talks about decoupling if we don't know what the result is. In other words, I could not support a motion to decouple and say okay, that's it; go decouple. I would like at least to have a suggestion. LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 81 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: Then I think that should be the motion. You don't have the ability to make a decision, and move it on to Council. JOEL PAULSON: Through the Chair, I'd offer one other opportunity would be the 150 for the parking, and then the... If you use the 40, we've established that that clearly is going to be less seats than we allow now, so you're not going to have a traffic impact, you're not going to have a parking impact, you're not going to have a CEQA impact. That that moves forward, but with the additional direction that Staff provide Council some additional information on if that number is lowered, when does it trigger CEQA? When does it trigger these other impacts? So whether or not there is actually support from three or more of you for that kind of avenue, at least at the 40 there are not the impacts that we've been discussing. CHAIR BADAME: Thank you, Mr. Paulson. We do have a motion and a second, so I think we need to carry through with the vote before we proceed any further. All in favor? Opposed. Fails. Commissioner Hudes, Vice Chair Kane in favor. Commissioner Erekson, Commissioner O'Donnell, Chair Badame opposed. COMMISSIONER O'DONNELL: Could I ask one more question of Staff? LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 82 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 CHAIR BADAME: Commissioner O'Donnell. 2 COMMISSIONER O'DONNELL: Arguably the 40 feet 3 would not be violated by the numbers we have on our chart, 4 is that right? 5 JOEL PAULSON: Correct. 6 COMMISSIONER O'DONNELL: Okay. I will attempt a 7 motion, and I say it with great fear. 8 VICE CHAIR KANE: I will not be supporting that motion. COMMISSIONER O'DONNELL: All right, then, I'll go with courage. I would move that we recommend that it be decoupled, and that 40 square feet be the number in place of the number in our prior motion, but that the original figure, and I think you used... What was the first figure? COMMISSIONER HUDES: Twenty-two. COMMISSIONER O'DONNELL: No, no, the first figure in your motion. COMMISSIONER HUDES: One space per 150 square feet. COMMISSIONER O'DONNELL: That number would remain the same. So it's really his motion, simply altering the 22 feet to 40, which it will therefore not be dependent upon any random sampling. I think that's the motion. I mean I think that's complete. LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 83 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 CHAIR BADAME: Do we have a second? Motion fails. All right, would anybody like to try another motion? VICE CHAIR KANE: To get that motion I'd look to the Commissioners to say where did we think the fault in that motion was? What do we want? CHAIR BADAME: I think we're all having trouble coming up with a number, and there are a lot variables in even trying to come up with a number. We just simply don't have enough information. Commissioner Hudes. COMMISSIONER HUDES: I think that really is the weakness, and so that's why I suggested that we provide those numbers to Staff, for Staff to analyze those numbers and come back to us, not to keep all of these variables open, but to recommend decoupling, and recommend that Staff come back to us to understand the impact of one space per 150 square feet for restaurants, and one seat per 22 square feet in dining, and to see whether that triggers a CEQA issue or not. CHAIR BADAME: Vice Chair Kane. VICE CHAIR KANE: Mr. Paulson, does that require a motion, or can we continue it with that request? JOEL PAULSON: It would be continuing to a date certain with direction to Staff. VICE CHAIR KANE: Does that take a motion? LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 84 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 JOEL PAULSON: Yes. CHAIR BADAME: Commissioner O'Donnell. COMMISSIONER O'DONNELL: Did I misunderstand? We're having a somewhat special meeting. I had assumed that was because the Council wanted to get this sooner than later. JOEL PAULSON: We were in the idea of getting a recommendation, yes; that's why we had the special meeting. But if the Commission doesn't feel comfortable, then the item can be continued; we can gather additional information. COMMISSIONER O'DONNELL: My only point that I would address to my fellow commissioners would be that I do think it ought to go to the Council sooner than later, because some of these questions we're wrestling with are virtually unsolvable, at least with the information we now have. But that's what I thought, since I thought Commissioner Erekson's objection to the original motion was the randomness of the sample, so by removing that randomness of the sample I hoped to address his concern, and by keeping really the guts of the motion, which was supported by the seconder, Vice Chair Kane, I hoped to satisfy him. Apparently I satisfied neither. LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 85 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 But it does appear to me that assuming those were the two objections, we ought to be able to come up with a motion which would not do violence to our lack of knowledge, because it would basically say we're using a number that I think we can be comfortable with in the first instance, whether it's 150 square feet or 200 square feet, and on the 40 square feet, that is simply a number which is not random, it is a number which would satisfy the existing numbers on the chart, so that comes out of reality. Now, if somebody can come up with... Obviously if we can't come up with a motion, we can't come up with a motion, but I throw that out, because I'd like to know what is wrong with that proposal. COMMISSIONER HUDES: My concern is that the number 40 is too restrictive to the downtown, and we'll be essentially locking down too much of a restriction on downtown that is out of keeping with the data that we have on the approved seats, at least these ten businesses, so it would actually be just about twice as restrictive as the reality of approved seats. COMMISSIONER O'DONNELL: That's not what Mr. Paulson said, if I understand it correctly. JOEL PAULSON: That is correct. The 40 is more restrictive, because the goal there is that has no impacts, LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 86 and so once you get to the 40, and I think the second piece 2 potentially is to add direction that the Council should 3 consider maybe a lower number, but with the potential CEQA 4 impacts, the traffic impacts, the parking impacts in mind we should make it either to Mr. Hudes' previous number, below that number, or somewhere between. CHAIR BADAME: Vice Chair Kane. 8 VICE CHAIR KANE: Commissioner O'Donnell, make 9 your motion again. You know, we're sending a recommendation io to Council, and they're going to read the transcript and/or 12 see the tape of what we've been struggling with. One would 13 hope they'll struggle with the same thing, and maybe they 14 can get better data. But our recommendation is the number 15 you used earlier, and to check the numbers out, to vet the 16 whole question. 17 COMMISSIONER O'DONNELL: I have another thought. Maybe if we made the motion even more general, which is to 19 say we recommend decoupling if the answer to these s 6 7 11 18 1 20 questions can be satisfied, and here we could use the two 21 numbers you used. If, for example, the 150 square feet and 22 the 40 square feet, it's just numbers that seem to satisfy... 23 The 40, for example, may be too high, and we're saying that 24 may be too high, but it is a number of them to consider, 25 LOS GATOS PLANNING COMMISSION 3/16/2016 Item #2, Town Code Amendment A-15-005 87