01 Staff Report - Community Vitality and Economic Recovery
PREPARED BY: Monica Renn
Economic Vitality Manager
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 05/26/2020
ITEM NO: 1
DATE: May 21, 2020
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Consider Options and Provide Direction to Staff on Next Steps for Economic
Recovery and Community Vitality Opportunities.
RECOMMENDATION:
Consider options and provide direction to staff on next steps for economic recovery and
community vitality opportunities.
BACKGROUND:
The COVID-19 pandemic has caused an unfortunate economic downturn for many Los Gatos
businesses and residents. As the Shelter in Place (SIP) order continues and some restrictions
are eased to provide the ability for more businesses to operate or businesses to expand
operations, many are looking for innovative ways to best address the impacts on their business
model while providing additional measures to allow for customers to remain socially distanced
and feel safe. Equally, customers are looking for creative ways to continue to patronize local
businesses and have access to the specialty products offered by Los Gatos merchants.
Town Council and staff have been receiving suggestions and comments from many businesses
and community members regarding ideas that they believe could be implemented to provide
community and economic vitality. Suggestions and comments have come in through social
media, conversations, and written communication. Those recently provided through written
communication are provided with this staff report as Attachment 1. Staff has made an effort to
collect all written submissions; however, may have missed some that were provided prior to
the noticing of this meeting.
PAGE 2 OF 8
SUBJECT: Consider options and provide direction to staff on next steps for economic
recovery and community vitality opportunities.
DATE: May 26, 2020
DISCUSSION:
Town staff has compiled a menu of community vitality ideas for the Council to consider in its
discussion. The options have been generated from input by Town staff, Los Gatos businesses,
the Chamber of Commerce, and the community at large. All of these ideas are intended to
facilitate sales for Los Gatos businesses in a manner that is fair, equitable, and fiscally viable for
the Town to implement. Staff has estimated costs for each idea to provide the Council with an
order of magnitude of the investment; however, costs would be refined after Council selects its
preferred option(s). For planning purposes, the Council may wish to assume a budget
maximum of approximately $2 M (see Fiscal Impact section of this report).
In addition to the Community Vitality initiatives, like outdoor dining, the discussion points also
include the opportunity for the Council to consider further process streamlining to limit
vacancies by retaining and attracting businesses.
Community Vitality
The community vitality opportunities for discussion within this report generally include the use
of public (Town) property for shopping and dining activities, thus there is a focus on the
downtown. Businesses outside of downtown typically have private parking lots or private
property adjacent to their businesses providing them with more flexibility to innovate their
service models. Some innovation, such as dining in parking spaces, may require the Council to
adopt reduced parking requirements. If the Council directs staff to provide similar flexibility
downtown with a resolution for programming parking spaces, staff may also include this
flexibility for commercial zones outside of downtown within a resolution if the Council so
directs. Businesses and property owners may then work directly with staff to address options
for innovation on private property.
To provide the Council with condensed conversation points, staff has summarized the
suggestions into the discussion topics below and as the Council identifies those opportunities
that rise to the top, staff may provide additional information and address logistics in more
detail. It is assumed that the shelter in place (SIP) County Public Health Order may continue to
be extended and that restrictions will be loosened in phases. Therefore, it is staff’s intent that
the options being presented may also be implemented in phases to remain in compliance with
the current Public Health Order.
Pop-Up Park in Parking Lot 4 (Public Parking Lot between Elm Street and Grays Lane)
It has been observed that the community continues to seek opportunities to enjoy the
downtown while creating the need for more space between one another. One opportunity to
expand open space in downtown for gatherings and take out dining options could include the
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SUBJECT: Consider options and provide direction to staff on next steps for economic
recovery and community vitality opportunities.
DATE: May 26, 2020
DISCUSSION (continued):
temporary closure of Parking Lot 4, wherein the Town could close this lot (and/or other lots)
and create ambiance with lighting, umbrellas, low maintenance foliage, bicycle parking, etc.
Community members may gather here, free of cars, with social distance, and enjoy the space
for reconnecting and take-out dining options. With this opportunity, staff is not recommending
that the Town provide any seats or tables, although would invite the community to bring chairs,
cushions, blankets and other portable seating options as they do in Plaza Park. If the Town
were to provide tables and chairs, the ongoing maintenance of cleaning these items between
each user would not be feasible until a time where “high touch” public areas are permissible by
the Public Health Order and such frequent cleaning would not be required.
The estimated cost to implement and maintain this pop-up park is $36,700.
Pop-Up Parks on Side Streets
Similar to the Grays Lane temporary public parklet that was approved by the Council on April 7,
2020 and the opportunity presented above, the Council could direct staff to identify additional
side streets to implement pop-up parks.
The Town’s investment for these two pop-up park options would include the barriers for the
closure plus items for ambiance such as those noted above and absent of seating or dining
furniture. The spaces would need to be cleaned and maintained approximately two to three
times per week and would be managed by the Parks and Public Works Department, or through
a third-party maintenance service. If the side street option is desirable, the surface of the
street would need to be treated with a lighter color to reduce the heat of the asphalt during the
summer months. Parking Lot 4 is concrete, not asphalt, so surface treatment may not be
required.
The estimated cost to implement and maintain a pop-up park on a side street is $30,400 per
street.
Temporary Parklets for Restaurants
Through conversations with many restaurants individually, and as a part of a larger restaurant
stakeholder meeting hosted by the Chamber of Commerce, temporary parklets repeatedly rises
to the top as a desired expanded seating option for restaurants. Several businesses have
requested that the Town allow temporary parklets to come back to N. Santa Cruz Avenue and
be added to Main Street, similar to those that were in place last summer allowing restaurants
to expand their seating outdoors without the large investment of time and capital that the
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SUBJECT: Consider options and provide direction to staff on next steps for economic
recovery and community vitality opportunities.
DATE: May 26, 2020
DISCUSSION (continued):
Town’s current parklet program requires. Restaurants could use existing County Health permits
and Alcoholic Beverage Control (ABC) licenses to serve in these temporary parklets with
approval from the two agencies.
As the Council considers this option, non-restaurant businesses should be considered along
with restaurants. Many retailers, personal services, and group classes may also have interest in
having expanded spaces to meet the needs of their customers. As the Council considers this
option, it should be noted that staff has heard concerns and requests that parking not be
completely eliminated as this access is highly desirable for customers who choose to participate
in a curbside pickup or to go model of shopping and dining.
The Council may wish to provide direction on certain elements of this opportunity, such as
barrier type/materials and the number of parking spaces a business may occupy (i.e., only those
spaces directly in front of their business, or case by case based on the parking availability and
neighboring business support). Requests have been made for the Town to provide the barriers
for the businesses to use, so the Council may wish to weigh in on this as well. Programming
and maintenance would be the responsibility of the business occupying the parklet.
Last year, the Town provided k-rail as barriers for the temporary parklets on N. Santa Cruz
Avenue. They were met with mixed reviews given the aesthetics of the barriers and their
association with construction areas. If the Town were to purchase and install planters instead
of the k-rail, the estimated cost would be $11,000 per parklet plus the cost of foliage for the
planters, whereas k-rail would be significantly less per space.
Closure of Portions of N. Santa Cruz Avenue and/or Main Street
The majority of the suggestions and comments received advocate for closing N. Santa Cruz
Avenue to create a large pedestrian friendly thoroughfare. The suggestions range in closure
size, times, and duration. This option would likely require the most time and financial
investment on the part of the Town and impact traffic patterns during the closure. As the
Council considers this street closure option, there is a broad spectrum of stakeholders to
consider as well as how the closure would be messaged to set expectations and provide
consistency.
Within this opportunity, staff has received a wide variety of suggestions represented in the
points below:
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SUBJECT: Consider options and provide direction to staff on next steps for economic
recovery and community vitality opportunities.
DATE: May 26, 2020
DISCUSSION (continued):
• Closure Size
o Close all or portions of N. Santa Cruz Avenue between Bachman Avenue and
Main Street.
o Use closed portions to allow sidewalk dining and keeping the street available for
pedestrian traffic.
o Use closed portions to allow restaurants to place tables and chairs in the street
in front of their business and pedestrian traffic would be maintained on the
sidewalks and in some portion of the street.
• Closure Times and Duration
o Close N. Santa Cruz Avenue during evening hours only to support expanded
dining options. Suggestions have ranged from most nights to only specific nights
per week, specifically Saturday and Sunday evenings, to allow for daytime traffic
and activities to be maintained.
o Close N. Santa Cruz Avenue every weekend for a full extended period, for
example the closure would begin Thursday late at night and end Sunday late at
night.
o Close N. Santa Cruz Avenue completely for a specified duration (i.e. summer and
early fall) to create a pedestrian promenade and open-air downtown shopping
and dining experience.
To close the street, the Town would need to contract with a traffic management company. This
would be more costly if the street is closed several times a week for short durations. It is
estimated that each closure would cost approximately $8,000. Additionally, each time a closure
takes place, parking enforcement would need consideration so that the street may be clear of
cars before the closure. There may also be an opportunity for the Town to partner with the
Chamber of Commerce and provide the funding for the project while the Chamber provides the
staffing and implementation of the closures.
Businesses would be responsible for supplying, placing, and cleaning their dining furniture, and
retail businesses would be required to place and secure their items as well. Street layout would
require pre-approval to ensure there is proper access for emergency vehicles if necessary.
Concerns around street closures and loss of on street parking have been raised by some
businesses as it could negatively impact the access and ease of curbside pickup and to go
orders.
PAGE 6 OF 8
SUBJECT: Consider options and provide direction to staff on next steps for economic
recovery and community vitality opportunities.
DATE: May 26, 2020
DISCUSSION (continued):
With all of the options noted above, the Council could also consider allowing additional
businesses to utilize closed public right-of-way to offer business services beyond food uses
including retail, group classes, and personal services. If the Council would like to allow for any
use of public right-of-way for private business, staff could work on a resolution that allows for
the existing businesses with Conditional Use Permits (CUPs) to be expanded into these spaces,
and staff would work with the businesses to ensure some level of permitting is in place that
address liability concerns on Town property and business responsibility for operating within all
Public Health, Environmental Health, and Alcohol Beverage Control provisions.
In addition, if the Council would like to allow alcohol consumption in parklets, pop-up parks,
and other areas where the community may be enjoying take out meals, staff may include
language in a resolution that addresses the ability to consume alcoholic beverages with or
without meals in such public areas as directed by the Council.
Process Streamlining
Likely more than ever, businesses are in an economic situation that is evolving quickly and
unexpectedly creating a higher risk situation for opening or expanding a business. In recent
times, the Town Council has approved several modifications to the Town Code and policies to
create land use streamlining opportunities that attract new businesses and encourage existing
businesses to remain in Los Gatos.
The COVID-19 pandemic has created changes in how businesses will operate for the
foreseeable future including how the customer is served, person to person spacing, number of
employees, and business hours. We know with certainty that several businesses have plans to
not reopen following the lifting of SIP restrictions creating an increase in vacancies.
Understanding that the business environment and conditions are much different than those
that have been in place for many years and those which most Town processes and provisions
are based on, the Council may wish to implement temporary resolutions that allow additional
process streamlining.
Some considerations for streamlining could include the temporary allowance of:
• Current Los Gatos businesses to relocate or expand into additional or larger spaces
without requiring a new Conditional Use Permit (CUP). The uses for these changes
could become legal non-conforming and be treated as such for future change of use, or,
the use could expire with a change of occupant. This promotes business retention and
PAGE 7 OF 8
SUBJECT: Consider options and provide direction to staff on next steps for economic
recovery and community vitality opportunities.
DATE: May 26, 2020
DISCUSSION (continued):
could allow for businesses to modify their model to adapt to the current economic
environment.
• Personal service CUPs could be heard by the Development Review Committee (DRC) in
the C-2 Zone, or removing the need for a CUP all together. Considerations and limits
could be implemented including limiting the areas of downtown where the restrictions
are removed, and/or a cap on the number of spaces that may become personal service
during the temporary resolution.
o The desire for personal service uses has risen during the pandemic as these
professionals are looking to leave salons and spaces where multiple
professionals are working at once for smaller spaces where only one or two
professionals utilize the space.
• Extending the expiration date for all building and planning entitlements.
• Greatly reduce the cost of CUPs for businesses by absorbing the staff cost to process the
applications. This would provide the opportunity for businesses to be vetted through
the current processes; however, would reduce the economic impact on the businesses.
CONCLUSION AND NEXT STEPS:
After discussing the opportunities outlined in this report and others that may come forward
through public comment or Town Council discussion, staff is requesting direction on next steps
for implementing the selected options. For those that may require changes to Town Code
provisions, staff will return to Council with a draft temporary resolution that addresses the
items and allows the changes to occur during this state of emergency, or until a time set forth
by the Council. The resolution may include the allowance of alcohol consumption with meals in
pop-up parks, extension of CUP boundaries to include adjacent outdoor service areas, and
other necessary changes to allow for the community vitality and economic recovery initiatives
to be utilized by businesses.
COORDINATION:
This report has been prepared with coordination between the Town Manager’s and Town
Attorney’s Offices, and the Police, Community Development, Parks and Public Works, and
Finance Departments.
PAGE 8 OF 8
SUBJECT: Consider options and provide direction to staff on next steps for economic
recovery and community vitality opportunities.
DATE: May 26, 2020
FISCAL IMPACT:
Depending upon the option(s) selected by the Town Council, costs will vary as explained in the
report. If the Council is interested in a high cost option, staff recommends that Council
consider repurposing one of the projects identified in the FY 2020/21 Capital Improvement
Program. For example, the Council may consider the Downtown Streetscape Revitalization
($1.9 M) or the implementation of the Parking Study (approximately $200 K) as projects that
have a nexus to downtown investments. Staff recommends that the Council adopt a motion
that specifies any repurposed capital project so it can be reflected in the final budget
documents and associated resolutions that are scheduled for consideration on June 2, 2020.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachment:
1. Public Comment