13 Attachment 3 - May 27, 2020 Planning Commission Staff ReportPREPARED BY: Sean Mullin, AICP
Associate Planner
Reviewed by: Planning Manager and Community Development Director
110 E. Main Street Los Gatos, CA 95030 ● 406-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
PLANNING COMMISSION
REPORT
MEETING DATE: 05/27/2020
ITEM NO: 3
DATE: May 22, 2020
TO: Planning Commission
FROM: Joel Paulson, Community Development Director
SUBJECT: Forward a Recommendation to the Town Council for Approval of
Amendments to Chapter 29 (Zoning Regulations) of the Town Code Regarding
Vehicle Sales, Town Wide. Town Code Amendment Application A-20-003.
Applicant: Town of Los Gatos
RECOMMENDATION:
Forward a recommendation to the Town Council for approval of amendments to Chapter 29
(Zoning Regulations) of the Town Code regarding vehicle sales.
CEQA:
The proposed project is exempt pursuant to the adopted Guidelines for the Implementation of
the California Environmental Quality Act, Section 15061(b)(3), in that it can be seen with
certainty that there is no possibility that the amendments to Chapter 29 of the Town Code will
have a significant effect on the environment.
FINDINGS:
As required, the project is exempt pursuant to the adopted Guidelines for the
Implementation of the California Environmental Quality Act, Section 15061(b)(3); and
The amendments to Chapter 29 of the Town Code are consistent with the General Plan.
BACKGROUND:
Sections 29.20.180 through 29.20.200 of the Town Code regulate conditional uses. The Table
of Conditional Uses in Section 29.10.185, requires approval of a Conditional Use Permit (CUP)
for new vehicle sales and rental in the C-2, LM, and CH zones. Additionally, used vehicle sales
are allowed with approval of a CUP in the C-2, LM, and CH zones only when their sale is
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ATTACHMENT 3
PAGE 2 OF 4
SUBJECT: Vehicle Sales
DATE: May 22, 2020
BACKGROUND (continued):
incidental to new vehicle sales and rental. Standalone used vehicle sales are not currently
allowed as a permitted or conditional use in any zone.
The Town was approached by a business seeking to locate a standalone used vehicle sales
business in the C-2 zone. Given the unique business model proposed by the business owner,
staff forwarded the issue to the Town Council Policy Committee to seek input and direction on
the appropriateness of standalone used vehicle sales in commercial and industrial zones.
On January 28, 2020, the Policy Committee discussed the matter and recommended that
standalone used vehicle sales be allowed with an approved CUP for vehicle sales and rental in
the C-2, LM, and CH zones (Exhibit 2). The Policy Committee recognized that vehicle sales
would continue to require a CUP, and that the Planning Commission would consider whether a
vehicle sales and rental use at a specific site is appropriate or not when reviewing the CUP
application.
DISCUSSION:
A. Amendments to the Town Code
The Policy Committee recommended that the Town Code be amended to allow standalone
used vehicle sales with an approved CUP for vehicle sales and rental in the C-2, LM, and CH
zones. Section 29.20.185, Table of Conditional Uses would be amended by striking “new”
from the new vehicle sales and rental category and eliminating the used vehicle sales
category. This change would eliminate the distinction between new and used vehicle sales,
allowing standalone used vehicle sales in the C-2, LM, and CH zones with an approved CUP.
TABLE OF CONDITIONAL
USES RC HR R1 RD R-M RMH R-1D O C-1 C-2 CH LM CM
(7) Automotive (Vehicle sales, services, and related activities)
a. New vVehicle sales
and rental
X X X
b. Used vehicle sales
only incidental to
new vehicle sales
and rental. Reserved
X X X
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SUBJECT: Vehicle Sales
DATE: May 22, 2020
DISCUSSION (continued):
B. Public Outreach
Public input has been requested through the following media and social media resources:
A poster at the Planning counter at Town Hall;
The Town’s website home page, What’s New;
The Town’s Facebook page;
The Town’s Twitter account;
The Town’s Instagram account; and
The Town’s Next Door page.
PUBLIC COMMENTS:
At this time, the Town has not received any public comments.
CONCLUSION:
A. Recommendation
Based on the direction of the Policy Committee, staff recommends that the Planning
Commission review the information included in the staff report and forward a
recommendation to the Town Council for approval of the amendments to Chapter 29 of the
Town Code in the draft Ordinance. The Commission should also include any comments or
recommended changes to the draft Ordinance in taking the following actions:
1. Make the finding that the proposed project is exempt, pursuant to the adopted
Guidelines for the implementation of the California Environmental Quality Act, Section
15061 (b) (3), in that there is no possibility that the amendments to Chapter 29 of the
Town Code in the draft Ordinance will have a significant effect on the environment
(Exhibit 1);
2. Make the finding that the amendments to Chapter 29 of the Town Code in the draft
Ordinance are consistent with the General Plan (Exhibit 1);
3. Forward a recommendation to the Town Council for approval of the amendments to
Chapter 29 of the Town Code in the draft Ordinance (Exhibit 3).
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SUBJECT: Vehicle Sales
DATE: May 22, 2020
CONCLUSION (continued):
B. Alternatives
Alternatively, the Commission can:
1. Forward a recommendation to the Town Council for approval of the draft Ordinance
with modifications; or
2. Forward a recommendation to the Town Council for denial of the draft Ordinance; or
3. Continue the matter to a date certain with specific direction.
EXHIBITS:
1. Required Findings
2. January 28, 2020, Town Council Policy Committee Report
3. Draft Ordinance
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PLANNING COMMISSION – May 27, 2020
REQUIRED FINDINGS FOR:
Town Code Amendment Application A-20-003
Forward a recommendation to the Town Council for approval of amendments to Chapter 29
(Zoning Regulations) of the Town Code regarding vehicle sales.
FINDINGS
Required Findings for CEQA:
The proposed project is exempt pursuant to the adopted Guidelines for the Implementation
of the California Environmental Quality Act, Section 15061(b)(3), in that it can be seen with
certainty that there is no possibility that the amendments to Chapter 29 of the Town Code
will have a significant effect on the environment.
Required Findings for General Plan:
The proposed amendments to Chapter 29 of the Town Code are consistent with the General
Plan.
N:\DEV\FINDINGS\2020\VEHICLE SALES - FINDINGS - PC 05-27-20.DOCX
EXHIBIT 1 Page 94
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 POLICY COMMITTEE REPORT
MEETING DATE: 01/28/2020
ITEM NO: 5
DATE: January 23, 2020
TO: Council Policy Committee
FROM: Laurel Prevetti, Town Manager
SUBJECT: Discuss the Town’s interpretation of “used vehicles” in the Town Code and
determine if an exemption for indoor showrooms is appropriate.
RECOMMENDATION:
Discuss the Town’s interpretation of “used vehicles” in the Town Code and determine if an
exemption for indoor showrooms is appropriate.
BACKGROUND:
The Town’s Zoning Code, Chapter 29 of the Town Code, does not specifically define used
vehicles; however, it does regulate them in the Table of Conditional Uses in Section 29.20.185
by requiring used vehicle sales to be incidental to new vehicle sales and rentals. Town staff
interprets the intent of this language to be prohibitive of standalone used vehicle lots that
occupy outdoor commercial spaces as parking lots for a large quantity of vehicles (i.e., over
twenty cars). Outdoor lots can be a potential visual blight on a shopping area. Town staff seeks
the Policy Committee’s input and direction on excluding indoor only showrooms from the
intent of the current Town Code language.
DISCUSSION:
The Town has been approached by a business who would like to locate in the C-2 zoning
district. In this case, the business is a used vehicle dealership wherein only previously owned
vehicles are sold; however, the vehicles are those that are vintage, rare, exotic, or of a class
that are not obtained at a typical dealership. This business model offers a high-end niche retail
sales experience coupled with an experience for vehicle enthusiasts to enjoy as a spectator.
54
EXHIBIT 2
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SUBJECT: Discuss the Town’s interpretation of “used vehicles.”
DATE: January 23, 2020
DISCUSSION (continued):
The business is requesting to have an indoor only showroom with approximately six to ten used
vehicles onsite at any given time. The business would also offer customers the ability to
request a specific make, model, and vintage of a vehicle, which the dealer would then work to
locate the desired vehicle. All vehicles for sale would remain on display indoors, and the point
of sale origin for sales tax purposes would be the same Los Gatos location as the showroom.
CONCLUSION:
Town staff believes that a differentiation could be made that exempts indoor only showrooms
for the sale of used vehicles to allow for specialty and niche businesses which do not occupy
any outdoor commercial spaces with used vehicles. The exemption of indoor showrooms
would allow for the sale of used vehicles alone; however, it would require that they be
completely contained indoors in a commercial zone. Given the Town Council’s Strategic Priority
to create greater opportunities for Community Vitality and business interests, staff believes it
could be appropriate to make this interpretation, thus we have brought the item forward for
the Policy Committee to discuss and provide direction.
COORDINATION:
This report has been prepared with collaboration between the Town Manager’s and Town
Attorney’s Offices, and the Community Development Department.
FISCAL IMPACT:
No fiscal impact would be realized by this item.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
55Page 96
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Ordinance Council Meeting Date
DRAFT ORDINANCE 2020-____
AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
AMENDING CHAPTER 29 (ZONING REGULATIONS) OF THE TOWN CODE
REGARDING VEHICLE SALES
WHEREAS, Chapter 29 (Zoning Ordinance) of the Town Code of the Town of Los Gatos
regulates vehicle sales in the C-2, LM, and CH zones by requiring the approval of a Conditional
Use Permit; and
WHEREAS, Section 29.20.185 of the Town Code allows used vehicle sales only when
incidental to new vehicle sales in the C-2, LM, and CH zones with an approved Conditional Use
Permit; and
WHEREAS, the Town was approached by a used vehicle sales business seeking to locate
in the C-2 zone; and
WHEREAS, given the unique characteristics of the request, the issue was forwarded to
the Town Council Policy Committee to seek input and direction on the appropriateness of
standalone used vehicle sales; and
WHEREAS, on January 28, 2020, the Town Council Policy Committee considered the
matter and recommended that standalone used vehicle sales be allowed with an approved
Conditional Use Permit in the C-2, LM, and CH zones; and
WHEREAS, this matter was regularly noticed in conformance with State and Town law
and came before the Planning Commission for public hearing on May 27, 2020; and
WHEREAS, on May 27, 2020, the Planning Commission reviewed and commented on
the proposed amendments regarding vehicle sales in the C-2, LM, and CH zones and forwarded
a recommendation to the Town Council for approval of the proposed amendments; and
WHEREAS, this matter was regularly noticed in conformance with State and Town law
and came before the Town Council for public hearing on ____ _, ____; and
WHEREAS, on ____ _, ____, the Town Council reviewed and commented on the
amendments to Chapter 29 of the Town Code and the Town Council voted to introduce the
Ordinance.
EXHIBIT 3
Draft Ordinance: subject to
modification by Town Council
based on deliberations and
direction
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Ordinance Council Meeting Date
NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES
HEREBY ORDAIN AS FOLLOWS:
SECTION I
Chapter 29 of the Los Gatos Town Code is hereby amended as follows:
ARTICLE II. DIVISION 3. APPROVALS
…..
Sec. 29.20.185. Table of Conditional Uses.
…..
TABLE OF CONDITIONAL
USES RC HR R1 RD R-M RMH R-1D O C-1 C-2 CH LM CM
(7) Automotive (Vehicle sales, services, and related activities)
a. New vVehicle
sales and rental
X X X
b. Used vehicle
sales only incidental
to new vehicle sales
and rental.
Reserved.
X X X
…..
SECTION II
With respect to compliance with the California Environmental Quality Act (CEQA), the
Town Council finds as follows:
A. These Town Code amendments are exempt from review under CEQA
pursuant to sections and 15061(b)(3), in that it can be seen with certainty that there is no
possibility that the amendments to the Town Code would have a significant effect on the
environment; and
B. The amendments to the Town Code are consistent with the General Plan.
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Ordinance Council Meeting Date
SECTION III
If any provision of this Ordinance or the application thereof to any person or
circumstances is held to be invalid, such invalidity shall not affect other provisions or
applications of the Ordinance which can be given effect without the invalid provision or
application, and to this end the provisions of this Ordinance are severable. The Town Council
hereby declares that it would have adopted this Ordinance irrespective of the invalidity of any
particular portion thereof and intends that the invalid portions should be severed and the
balance of the ordinance be enforced.
SECTION IV
Except as expressly modified in this Ordinance, all other sections set forth in the Los
Gatos Town Code shall remain unchanged and shall be in full force and effect.
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Ordinance Council Meeting Date
SECTION V
This Ordinance was introduced at a regular meeting of the Town Council of the Town of
Los Gatos on the ___ day of _____ 2020 , and adopted by the following vote as an ordinance of
the Town of Los Gatos at a regular meeting of the Town Council of the Town of Los Gatos on
the ____ day of _____ 2020 . This ordinance takes effect 30 days after it is adopted. In lieu of
publication of the full text of the ordinance within fifteen (15) days after its passage a summary
of the ordinance may be published at least five (5) days prior to and fifteen (15) days after
adoption by the Town Council and a certified copy shall be posted in the office of the Town
Clerk, pursuant to GC 36933(c)(1).
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ATTEST:
TOWN CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
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