Staff Report parklets and promenade debrief 8 17 21
PREPARED BY: Monica Renn
Economic Vitality Manager
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Police Chief, Community
Development Director, Parks and Public Works Director, 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: 08/17/2021 ITEM NO: 11
DATE: August 10, 2021
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Discuss and Provide Direction on the Following Actions to Continue the
Town’s Support of Economic Recovery and Community Vitality in Response to
the Ongoing COVID-19 Pandemic, Including:
a. Temporary Krail Parklets:
1. Extend Sunset Date for Dining Establishments until January 31,
2022 and Approve a Budget Adjustment of $40,000 from American
Rescue Plan (ARPA);
2. Provide Direction on Temporary Tents and Other Weather
Protection Structures, Including Enforcement;
b. Semi-Permanent Parklets:
1. Allocate Additional Funding of $680,000 from the Town’s ARPA
Allocation to Meet the Response of Businesses to the Subsidized
Parklet and Grant Application Process; and
c. Debrief the Chamber of Commerce’s Thursday Night Promenade Events in
which the Town Provided Financial Support.
RECOMMENDATION:
Discuss and provide direction on the following actions to continue the Town’s support of
economic recovery and community vitality in response to the ongoing COVID-19 pandemic,
Including:
a. Temporary Krail Parklets:
1. Extend sunset date for dining establishments until January 31, 2022 and approve
a budget adjustment of $40,000 from ARPA;
2. Provide direction on temporary tents and other weather protection structures,
including enforcement;
b. Semi-Permanent Parklets:
PAGE 2 OF 11 SUBJECT: Discuss and Provide Direction on the Following Actions to Continue the Town’s Support of Economic Recovery and Community Vitality DATE: August 10, 2021
RECOMMENDATION (continued):
1. Allocate Additional Funding of $680,000 from the Town’s ARPA Allocation to
Meet the Response of Businesses to the Subsidized Parklet and Grant Application
Process; and
c. Debrief the Chamber of Commerce’s Thursday Night Promenade Events in which the
Town Provided Financial Support.
BACKGROUND:
As the Town continues to move through the dynamic economic recovery environment created
by the COVID-19 pandemic, health orders and timelines continue to shift and generate the
need for ongoing flexibility. Since March 2020, the Town Council has remained supportive and
adaptive to the community’s stakeholders, delicately balancing competing interests and
continuing to consider how to provide available assistance. In addition to economic and policy
support, the health and safety of the community remain a top Council priority. The Town
Council has met on several occasions to discuss and direct actions that support the Town’s
economic and community vitality efforts. A high-level summary of these efforts includes: rent
forgiveness for Town-owned properties; expanded support through community grants; and
community and economic vitality efforts including funding for subsidized business permits,
parklet programs, destination marketing, and a series of road closure events.
Specifically related to economic vitality, the Town Council has adopted an Economic Recovery
Resolution that remains in effect until December 31, 2021. The Resolution memorializes the
Town’s effort to streamline and update business processes and provide modernized provisions
with greater flexibility as businesses look to adapt and recover from the pandemic. A large part
of the Resolution also includes the ability for businesses to flex outdoor space, both public and
private, to offer outdoor dining and services as indoor business activity was drastically reduced
or closed as a part of the County and States COVID-19 response mandates. Even as full capacity
returned to indoor business activity, the Town Council continued to keep the Resolution in
effect allowing for continued flexibility so businesses could navigate the unknown of the
pandemic through the end of 2021.
The temporary krail parklet program, adopted in May of 2020, has been a lifeline for many
businesses as they were given the opportunity to use public on-street parking spaces for their
private business operations at no cost to the business. For many businesses, this was the only
seating areas they had during the indoor business shut down mandates from the State of
California and County of Santa Clara. Maintaining these spaces past the reopening of indoor
dining has afforded the restaurants the ability to serve more patrons and enhance their
business recovery efforts while offering the community a more comfortable and lower
PAGE 3 OF 11 SUBJECT: Discuss and Provide Direction on the Following Actions to Continue the Town’s Support of Economic Recovery and Community Vitality DATE: August 10, 2021
BACKGROUND (continued):
transmission solution to indoor dining. Based on prior Council action this program is currently
due to sunset on September 19, 2021.
Alongside the temporary krail parklet program, on January 19, 2021 the Town Council adopted
a semi-permanent parklet program to replace the temporary krail parklet program with a
longer-term business viability solution. The semi-permanent parklet program maintains the
alfresco dining experience in downtown Los Gatos while the Town considers a broader
streetscape redesign project for downtown. The semi-permanent parklets are expected to
remain in place for approximately seven to ten years. At its April 20, 2021 meeting, the Town
Council expanded the subsidized grant amount giving businesses the ability to apply for a pre-
approved parklet design at a subsidized rate, and receive a grant for 75% of the construction
costs, up to $40,000 per business. The Town Council also requested that the staff return in late
summer to provide an update on the status of the applications and program and reconsider the
sunset date of the temporary krail parklets if necessary.
Through discussions of economic recovery and community vitality, the Chamber of Commerce
requested funding to provide the Town with an emergency destination marketing campaign
and a series of events that include the closure N. Satna Cruz Avenue weekly throughout the
summer. Both efforts were proposed to promote the Town of Los Gatos as a premier Silicon
Valley destination to shop, dine, stay, and experience the Town. The emergency destination
marketing campaign is slated to provide a Visit Los Gatos website and offer opportunities for
residents and visitors to engage with the Town’s offerings when searching the term “Los Gatos”
online, connecting through various social media platforms, and visiting merchants in person.
Additionally, the event series leverages the messaging that Los Gatos is open for business and
excited to welcome back residents and visitors for safe in-person shopping and dining
experiences.
The proposed Thursday Night events called, The Promenade, were intended to create more
pedestrian friendly space for shoppers and diners to stroll through downtown comfortably and
rediscover the business community. On May 4, 2021, the Town Council allocated $80,000 to
the Chamber of Commerce to support seven Thursday night Promenade event road closers
concluding before October 1, 2021. The Chamber of Commerce moved forward with
implementing seven consecutive road closure events on Thursday evenings, July 1 through
August 12, 2021, from 3 to 8 p.m.
At the following Town Council meeting on May 18, 2021, an additional $55,000 was allocated to
support an emergency destination marketing campaign including the proposed Visit Los Gatos
website and social media boosts. The Chamber of Commerce has been creating this content,
PAGE 4 OF 11 SUBJECT: Discuss and Provide Direction on the Following Actions to Continue the Town’s Support of Economic Recovery and Community Vitality DATE: August 10, 2021
BACKGROUND (continued):
launching an Instagram page in early July 2021, and expecting to fully launch the Visit Los Gatos
website by the beginning of September.
DISCUSSION:
Temporary Krail Parklets
Sunset Timeline Extension – As previously noted on May 4, 2021, the Town Council extended
the temporary krail parklet program through September 19, 2021 and asked that staff return
prior to the sunset date to provide an update and allow for additional public discussion. Staff is
recommending that the Town Council extend the sunset date of the temporary krail parklet
program until January 31, 2022 for dining establishments.
This extension allows for restaurants to maintain their current seating and staffing levels for the
time being and offers some business security through the busy holiday season should health
orders return to limiting or prohibiting indoor dining. In recent weeks, the County of Santa
Clara has reinstated mask mandates indoors as the number of COVID Delta variant cases were
on the rise. While the hope is that further restrictions will not be implemented, staff
recommends allowing the krail to stay through the bulk of the winter months to offer a
business continuity option should the limitations return.
Additionally, as staff is working with applicants on the semi-permanent parklets, it has become
apparent that construction timelines are longer than previously anticipated. Given the
workload on contractors and the timeline for material acquisition, it is more realistic to predict
construction beginning on the parklets in late fall or early winter. To eliminate the confusion of
adding parking spaces back only to remove them again weeks later for parklet construction, and
to provide a smoother transition from one parklet program to the next, it would be most
efficient to leave the existing krail in place until construction begins on the semi-permanent
parklets.
Staff has connected with all businesses to understand where under-utilized, or no longer
needed krail exists and recommends removing these areas on or before September 19, 2021.
Wherever the krail is removed, staff recommends implementing 30-minute parking spaces to
encourage on-street quick turn, to-go, and pick up parking opportunities.
If the Town Council would like to continue the temporary krail parklet program through January
31, 2022, staff is requesting an allocation of $40,000 from the American Rescue Plan Act funds
(ARPA) to cover the additional rental costs of the krail.
PAGE 5 OF 11 SUBJECT: Discuss and Provide Direction on the Following Actions to Continue the Town’s Support of Economic Recovery and Community Vitality DATE: August 10, 2021
DISCUSSION (continued):
Temporary Tents and Other Weather Protection Structures – During the Town Council’s
discussion on April 20, 2021, the Town Council voted to require all temporary krail parklets to
remove siding and vertical barriers within the parklets by May 1, 2021, and to remove all tent
covers and overhead structures, except for umbrellas and moveable sail-type covers, when
indoor dining returned to full capacity, expected on or before June 15, 2021. The majority of
businesses complied with the siding removal in a timely manner and staff has been continuing
to request compliance from the last few businesses. Additionally, staff sent a reminder out to
all temporary parklet operators in July, reminding them that the overhead covers were also
required to be removed. Compliance with this direction has gained less support. To date, no
businesses have been cited for the tent covers remaining in place.
Understanding that the temporary krail parklet sunset date may be extended, staff is looking to
confirm the Town Council’s prior direction of prohibiting vertical barriers, temporary tents, and
other weather protection structures after June 15, 2021. This direction would mean that all
parklet covers must comply with those standards that are part of the pre-approved parklet
program which allow for umbrellas and sail-type moveable sunshade covers, unless a building
permit has been obtained to build a solid, low-profile parklet cover as a part of the semi-
permanent parklet program. The solid low-profile cover allowance was an approved carve-out
by the Town Council based on business input on April 20, 2021, with no subsidy offered for the
cover. For those who may have constructed solid roof structures outside of the semi-
permanent parklet program and out of compliance with the April 20, 2021 Town Council
direction, staff is asking for confirmation from the Town Council that enforcement of removal
of such covers should be pursued.
In an effort to balance the needs of multiple business models, staff recommends that the Town
Council provide direction to continue to disallow vertical barriers, banner, or shades of any
kind, and temporary tents and other weather protection covers except for umbrellas and
movable sail-type shade covers within the temporary krail parklets through the duration of the
temporary krail parklet program. Such vertical barriers and temporary tent structures while
providing weather protection for diners significantly decrease the visibility of other store fronts
and in some cases, pedestrians as they enter crosswalks. Staff has received numerous
complaints from retailers that customers are unable to find their location or see their signs due
to the obstructions coming from the tent structures. The use of outdoor heaters would still be
permitted given that they are in compliance with the provisions set forth by the Santa Clara Fire
District.
If this is the direction of the Town Council, staff also seeks confirmation from the Town Council
to enforce all of these provisions (removal of sides, temporary tents, out of compliance roofs)
using typical Code Compliance tools (fines, removal, etc.). would like staff to move forward with
PAGE 6 OF 11 SUBJECT: Discuss and Provide Direction on the Following Actions to Continue the Town’s Support of Economic Recovery and Community Vitality DATE: August 10, 2021
DISCUSSION (continued):
enforcement of the removal of non-compliant vertical barriers, tents, canopies, and similar
weather protection structures.
Semi-Permanent Parklets
Allocate additional funding for subsidy and grant opportunities - At its April 20, 2021 the Town
Council expanded the subsidy and grant amounts that had been previously approved on
January 19, 2021 for the semi-permanent parklet program, at the request of several business
stakeholders. The subsidy and grant are applicable up to a two-stall sized parklet. The
subsidized program includes: full subsidy of Town fees including the parklet permit application,
building permit, and encroachment permit fees; partial (about 50%) subsidy of the consulting
architect fee for design and engineering; and, a grant for 75% of parklet construction costs, up
to $40,000 per business.
Larger parklets are permitted; however, businesses must fully cover any additional costs
accrued due to the larger size. Those applicants that would like to add a solid, low-profile roof
structure, as approved by the Town Council on April 20, 2021, must fully cover the cost for the
design, engineering, and build-out of the structure as well.
Additionally, on April 20, 2021, the Town Council approved a retroactive construction grant for
the five original parklets in the amount of 75% of construction, up to $40,000. With this
approval, all parklets are on a level playing field and new agreements will be executed for the
five original parklets that align with the agreements between the Town and the newly
implemented semi-permanent parklets thus all provisions will be consistent and managed
equitably.
This subsidy and grant expansion facilitated additional businesses to participate in the semi-
permanent parklet program by making the costs more broadly feasible. Additionally, as
vaccination rates increased and some customers returned to in-person dining, outdoor seating
options remained preferable among many patrons. These dynamics have led to a significant
increase in interest from businesses to participate in the semi-permanent program. Of those
restaurants with temporary krail parklets, only three did not apply for the semi-permanent
program, and one property owner applied for two semi-permanent parklets in front of their
vacant spaces to improve the appeal of the space for prospective tenants. The Town also
received parklet applications from four new restaurants, who are backfilling three previously
vacant spaces. The parklet programs have been noted as a draw for new businesses in Los
Gatos.
PAGE 7 OF 11 SUBJECT: Discuss and Provide Direction on the Following Actions to Continue the Town’s Support of Economic Recovery and Community Vitality DATE: August 10, 2021
DISCUSSION (continued):
The deadline to apply for a semi-permanent parklet was at the end of July. Staff received 38
applications for new semi-permanent parklets. With the five original parklets, the Town now
has 43 businesses eligible for subsidy. If all 38 parklets complete the process, the total estimate
of funding is approximately $1.73M. The funding to provide retroactive grants is expected to
be approximately $200,000, bringing the funding needed to an approximate and not to exceed
amount of $1.93M. The current funding allocation is $1.26M, divided between ARPA funding
and the Economic Recovery Funds (which has limited remaining available funds), thus staff is
requesting that the Town Council allocate the additional funds needed to cover program costs
from ARPA.
Unless additional unforeseeable costs occur, the requested funding represents the high-end
cap of the costs as it calculates each business receiving the full $40,000 for the grant, and the
full $5,500 for Town fee subsidy. It is likely most parklets will not need the full amount, but the
extent needed is unique to each business’ circumstances and unknown at this time. Staff has
not received any official construction estimates to date thus cannot accurately estimate the
amount most businesses will require for their construction grant should it be less than $40,000.
Staff recommends that the additional funds be allocated from ARPA to cover the full cost of the
semi-permanent parklet program, then prior to the end of 2021, staff will return to the Town
Council for an update and discussion of the program progress and actual costs to date.
Thursday Night Promenade Event Debrief
As discussed in the background of this report, the Chamber of Commerce was allocated Town
funds to support a series of street closure events on N. Santa Cruz Avenue during the summer
of 2021. The events, referred to as the Thursday Night Promenades were intended to close N.
Santa Cruz Avenue to attract pedestrian traffic and offer more space for pedestrians to
experience the merchants located downtown. Attachment 1 contains the original proposal
received from the Chamber of Commerce on May 3, 2021, which was previously distributed as
a Desk Item for the May 4, 2021 Town Council Meeting.
At its May 4, 2021 meeting, the Town Council unanimously voted to allow up to seven Thursday
night downtown street closures over the summer (to be completed by October 1), with $80,000
of total Town funds to support the closures. The Chamber of Commerce worked to implement
the closures consecutively for the duration of the summer. The closures began on Thursday,
July 1, with the final event scheduled for Thursday, August 12, which has not yet concluded at
the publication time of this report. Attachment 2 provides a summary from the Chamber of
Commerce of their observations of the event, and Attachment 3 contains public comment
received before 11 a.m. on Thursday, August 12.
PAGE 8 OF 11 SUBJECT: Discuss and Provide Direction on the Following Actions to Continue the Town’s Support of Economic Recovery and Community Vitality DATE: August 10, 2021
DISCUSSION (continued):
Staff distributed an online survey to businesses both in and outside of downtown to understand
the impact the event had on their business, and the Chamber provided additional business
outreach to capture a variety of business input. Staff also created a community survey that is
available on the Town’s website, shared through social media, and advertised at the final
Promenade event to collect input from residents and visitors as well. The online surveys will
remain active until Sunday, August 15, 2021, and staff will provide an addendum to this report
on Monday, August 16, 2021 that contains the results of the surveys.
To assist the Town Council with determining future events, staff has outlined some
observations s below and provided information for any elements that were required or noted
during the event.
• Attendance – The crowd size at each individual event seemed to increase throughout
event as the temperature dropped and the sun began to set with the majority of people
arriving between 5 and 6 p.m. Most gathered near the bands at each end of the
closure, or within the parklets of establishments near the music, while others strolled
the street. As the awareness and popularity of Thursday Night Promenade events grew,
each week seemed to have a larger crowd in total when compared to the prior weeks’
events.
• Entertainment – The Chamber provided two live bands at each event, then as the events
progressed added various elements of entertainment spread throughout the closure
area including a car show, street art with chalk, lawn games, and jugglers/family
entertainers. The bands hired by the Chamber of Commerce stopped by 8 p.m.;
however, a couple of businesses hired their own sources of music, or other local bands
set up on public right-of-way within the closure area, making it difficult to clear the
crowds on some days as these unaffiliated bands continued to play beyond the event
ending time.
Moving forward, should these events take place in the future, staff would recommend
that only entertainment that is associated with the event be permitted, unless it ceases
by the end of the event, or is completely contained within a business’ private property
to allow for efficient crowd clearance. Additionally, the location of the bands may need
to be reconsidered so that as large crowds gather to watch the performance, the bulk of
the people are more centrally located within the closure, to minimize crowd spillage
outside of the closure into the roadway. It was noted that several event guests arrived
early to place chairs in the street near the band performance areas, then returned for
the performance similar to how guests enjoy the Music in the Park concert series.
PAGE 9 OF 11 SUBJECT: Discuss and Provide Direction on the Following Actions to Continue the Town’s Support of Economic Recovery and Community Vitality DATE: August 10, 2021
DISCUSSION (continued):
• Alcohol consumption – Following the first week of the closure, the Chamber requested
the ability to allow guests to have open containers of alcohol within the closure area so
that guests could purchase to-go beer, wine, or cocktails from restaurants and consume
them as they enjoy the event. With approval from the Town, the Chamber obtained
approval for this from California Alcohol Beverage Control (ABC). As the events
progressed, more restaurants began to have quick to-go sale options for alcoholic
beverages, and some guest began bringing ice chests with their own beverages. At the
request of the Town, the Chamber responded to these concerns by posting additional
signage and working with businesses to ensure they are aware of the type of allowance
ABC granted the Chamber for the event so that businesses remain in compliance with
their own ABC licenses.
• Police Department support - Staff observed that crowds tended to migrate towards and
linger at bars and restaurants with alcohol service after the conclusion of the event. On
two consecutive weeks, calls for service were made to the Police Department to assist
with residual crowds and rowdy behavior after the event ended. Some were specifically
related to a single local business, as well as other alcohol related calls in and around
downtown. This concern was addressed with the Chamber and business. The following
week two uniformed LGMS Police Officers were added to patrol the event from 6 – 10
p.m., which seemed to provide the additional support needed for crowd control and the
Officers assisted with clearing the street so that it could be reopened in a safe and
timely manner. Additionally, the business related to the prior concerns adjusted their
practices and the issues experienced the two weeks prior seem to be resolved.
Moving forward, any event with a similar crowd size and alcohol consumption should
require uniformed Police presence at the expense of the event organizers. Staffing
uniformed Officers can be difficult at times when personnel is in short supply and/or
unavailable.
• Traffic Closure – Several years ago, the Town hired a traffic engineering firm to provide a
road closure plan for events that close N. Santa Cruz Avenue between Main Street and
Bachman Avenue. This plan entails using metal signage to indicate to drivers that the
roads is closed. Historically, the Town has required additional barricades or barriers to
be in place in specific instances that provide more of a physical barrier and added layer
of blockage should a car attempt to enter the closure area. The original permit
application provided by the Chamber included a flatbed truck parked at each end of the
closure, creating an extra physical barrier. When staff arrived at the first event, the
flatbed trucks were not on site and the bands and crowds were set up directly adjacent
to the metal sign barricades. This created a situation where crowds were naturally
PAGE 10 OF 11 SUBJECT: Discuss and Provide Direction on the Following Actions to Continue the Town’s Support of Economic Recovery and Community Vitality DATE: August 10, 2021
DISCUSSION (continued):
spilling into the crosswalk and lanes of travel that remained opened. Following this
event, the Town reinforced the requirement of either the planned flatbed truck, or a
similar barrier. The Chamber worked with their traffic control consultants and the
bands to place their own vehicles at the closure ends. For the last two events, the Town
piloted the use of the anti-vehicle barriers that the Town owns to understand the
investment of resources required to deploy these devices at events.
Staff recommends that the Town Council discuss the debrief points noted Attachments 2 and 3
and the Addendum, and if needed provide staff with any additional direction for future events.
CONCLUSION:
Staff recommends the following actions be taken by the Council as outlined in this staff report:
a. Temporary Krail Parklets
1. Extend the sunset date of the temporary krail parklet program for restaurants to
January 31, 2022, and allocate an additional not to exceed amount of $40,000 from
ARPA funds to cover rental costs of the krail through the program sunset date.
2. Continue to disallow vertical barriers, banner, or shades of any kind, and temporary
tents and other weather protection covers except for umbrellas and movable sail-type
shade covers within the temporary krail parklets through the duration of the temporary
krail parklet program and enforce these requirements through typical Code Compliance
practices. and provide direction for level of enforcement of the removal of non-
compliant vertical barriers, tents, canopies, and similar weather protection structures.
b. Semi-Permanent Parklet Funding
1. Allocate an additional $680,000 from ARPA to meet the response of businesses to the
subsidized parklet and grant application process to cover the full cost of the semi-
permanent parklet program, then prior to the end of 2021, staff will return to the Town
Council for an update and discussion of the program progress and actual costs to date.
c. Thursday Night Promenade Events
1. Debrief the Chamber of Commerce’s Thursday Night Promenade Events in which the
Town provided funding and provide additional direction if desired.
COORDINATION:
This report was drafted in collaboration with the Town Manager and Town Attorney’s Offices,
and the Finance, Police, Community Development, and Parks and Public Works Departments.
PAGE 11 OF 11 SUBJECT: Discuss and Provide Direction on the Following Actions to Continue the Town’s Support of Economic Recovery and Community Vitality DATE: August 10, 2021
FISCAL IMPACT:
The recommendations have the following fiscal impact:
• Allocate an additional $40,000 from ARPA funds to support an extension of the
temporary krail parklet program through January 21, 2022; and
• Allocate an additional $680,000 to increase the previously allocated amount of $1.26M
to $1.93M to cover the full, not to exceed, cost of the semi-permanent parklet subsidy
and grant program using funds from ARPA.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Proposal from the Chamber of Commerce related to the original requests for the Thursday
Night Promenade events
2. Written debrief from the Chamber of Commerce regarding the Thursday Night Promenade
events
3. Public comment received before 11:00 a.m. on Thursday, August 12, 2021