Staff Report
PREPARED BY: MONICA RENN
Economic Vitality Manager
Reviewed by: Assistant Town Manager Town Attorney Finance
N:\SHARE\COUNCIL REPORTS\2016\10-04-16\08 Seats to Parking\08 Staff Report FINAL.docx
MEETING DATE: 10/04/16
ITEM NO: 8
COUNCIL AGENDA REPORT
DATE: SEPTEMBER 21, 2016
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: ADOPT AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF
LOS GATOS AMENDING SECTION 29.10.150 OF CHAPTER 29 OF THE
LOS GATOS TOWN CODE TO REVISE THE REQUIRED PARKING
REQUIREMENTS FOR RESTAURANTS.
RECOMMENDATION:
Staff recommends that Town Council accept public comment and then move for introduction and
first reading of an Ordinance, by title only, amending Section 29.10.150 to the Los Gatos Town
Code.
BACKGROUND:
Since September 1, 2015, the Council has been considering a series of policies and Code
amendments that relate to businesses including formula retail, paid valet parking service in
downtown, a revised outdoor seating policy, policies allowing entertainment, retail and
restaurant definitions, and the relationship between parking requirements and seating capacities
in restaurants. At the October 6, 2015 meeting, the Council requested that these items be
considered individually at a series of future meetings.
On December 15, 2015, the Town Council considered the potential separation of parking
requirements and seating capacities. During this discussion, the Council expressed interest in
exploring options that provide businesses with the most flexibility to operate their restaurants
BACKGROUND (cont’d):
with a number of seats that is both safe and operationally feasible. During this meeting, the
Council discussed the relationship between parking requirements and seating capacities, the
history of the Parking Assessment District (PAD) and how it relates to seats, and benchmarking
BACKGROUND (Cont’d):
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: AMENDMENTS TO SECTION 29.10.150 OF CHAPTER 29 OF THE LOS
GATOS TOWN CODE TO REVISE THE REQUIRED PARKING REQUIREMENTS FOR
RESTAURANTS
SEPTEMBER 21, 2016
information from other jurisdictions. It was noted at that time that removing the relationship
between parking and seating capacities within downtown would in no way alter the current status
of the PAD, or the number of spaces credited to each parcel. The Council voted unanimously to
direct staff to present options to the Planning Commission regarding potential ordinance
language to decouple parking and seats in the Code and a recommendation back to the Town
Council.
DISCUSSION:
Per Council’s direction, staff prepared a report for the Planning Commission’s meeting of
January 13, 2016 that identified several options (see Attachment 1). The Planning Commission
considered the Council’s discussion and requested that staff provide more information as well as
do additional outreach. The Commission voted unanimously to continue the item to a special
meeting on March 16, 2016.
On March 16, 2016, the Planning Commission conducted a special meeting and considered the
additional requested information. Currently, Town Code Section 29.10.150 has the following
language, including restrictions for downtown and other commercial zones:
The parking requirement for various uses in the downtown are as follows:
(1) Retail and commercial stores and shops. One (1) parking space for each three
hundred (300) square feet of gross floor area.
(2) Business and professional offices, banks, financial institutions, insurance
companies, social service agencies and studios. One (1) parking space for each two
hundred fifty (250) square feet of gross floor area.
(3) Restaurant (no separate bar). One (1) parking space for each four (4) seats.
(4) Restaurant (separate bar). One (1) parking space for each three (3) seats.
(5) Bars, taverns and nightclubs. One (1) parking space for each three (3) seats.
...
Outside downtown parking requirements.
(9) Retail and commercial stores and shops. One (1) parking space for each two
hundred thirty-five (235) square feet of gross floor area.
(10) Business and professional offices, banks, financial institutions, insurance
companies, social service agencies and studios. One (1) parking space for each two
hundred thirty-five (235) square feet of gross floor area.
DISCUSSION (cont’d):
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: AMENDMENTS TO SECTION 29.10.150 OF CHAPTER 29 OF THE LOS
GATOS TOWN CODE TO REVISE THE REQUIRED PARKING REQUIREMENTS FOR
RESTAURANTS
SEPTEMBER 21, 2016
(15) Public eating establishments, taverns, and nightclubs. One (1) parking space for
each three (3) seats in such public eating establishments, taverns or nightclubs.
Staff suggested that the Planning Commission focus on two questions as they formulated their
recommendation(s):
1. Should the Town Code be amended to decouple seating from parking requirements for
restaurants?
2. If so, what metric should the Town use to regulate seating capacities in restaurants?
a. Seats based on square footage;
b. Seats based on Fire Code occupancy; or
c. Some other metric.
The Commission engaged in a lengthy and thoughtful discussion, then made the following
recommendation:
Motion made by Commissioner O’Donnell to recommend to the Town Council to decouple
parking from seats, with the decoupling requiring approval of what would be substituted for the
present measurement; and that 150 square feet was the factor discussed to determine how many
parking spaces are required and 40 square feet was a factor discussed to determine the
maximum number of seats allowed. After a second by Vice Chair Kane, Commissioner Hudes
requested that the motion be amended to include: the seating not exceed fire code; and that the
staff look at not only one seat per 40 square feet, but look at the other numbers that were
discussed, including one seat per 22 square feet. The maker and seconder of the motion both
accepted this amendment and the motion passed 3-2 with Chair Badame and Commissioner
Erekson opposing. (Commissioners Burch and Hansen were absent.)
The Planning Commission has forwarded its recommendation to the Council to adopt an
ordinance to decouple seats and parking spaces. Its recommendation is to use square footage as
the metric to calculate seating capacities. The Planning Commission asked that staff add more
examples on the seating calculation chart presented to the Commission including one seat per 22
square feet. Staff has added the requested examples. (Attachment 5)
Attachment 6 contains language to amend Section 29.10.150, amending the provisions of seating
capacities based on parking spaces. This amendment decouples seats and parking requirements.
Additional amendments may be required to other Sections of the Code if the Council elects a
specific square footage calculation that is greater than maximum fire occupancy. Should this be
the case, staff will prepare subsequent amendments to the appropriate Code Section for the
Council.
PAGE 4
MAYOR AND TOWN COUNCIL
SUBJECT: AMENDMENTS TO SECTION 29.10.150 OF CHAPTER 29 OF THE LOS
GATOS TOWN CODE TO REVISE THE REQUIRED PARKING REQUIREMENTS FOR
RESTAURANTS
SEPTEMBER 21, 2016
ALTERNATIVES:
In addition to the Planning Commission recommendation, the Council has other alternatives:
1. Accept the Planning Commission’s recommendation to decouple seats and parking, and
allow seating capacities to be governed by maximum fire code occupancy Town-wide.
During the Council discussion on December 15, 2015, some Council members expressed
their support of regulating seats based on maximum fire occupancy as this model
provides the opportunity for businesses to remain flexible with seating areas to maximize
their customer experience and complement their type of business, as the Fire Department
already regularly inspects and permits occupancy levels that provide a safe environment.
For the majority of the restaurants in Town, making a change to maximum fire
occupancy would only allow a few additional seats, and would not create a notable
change. This is especially true in downtown where properties have purchased additional
parking spaces through the former Parking Assessment District, or have shared parking
agreements in place. Many restaurants may already be unknowingly above their
Conditional Use Permit seat limit but well within the occupancy for health and fire
safety. As each business operates differently and targets their own market, not all
restaurants can deliver their business model at maximum fire occupancy, and would not
add any additional seats.
In addition, the Town’s Outdoor Seating Policy allows for seats to be placed outside in
compliance with the Americans with Disability Act and with proper permit approval,
ultimately offering more space for seat placement. The Town has had one restaurant
apply for, receive approval, and begin fully operating a new outdoor dining space under
the new Outdoor Seating Policy. As the dynamic market continues to change and more
people purchase retail goods online, the desire to eat out and meet at a merchant
location where food or beverage options are offered has increased significantly. While in
person retail shopping continues to decline, gaps in the market place are filled with
restaurant and other service based business patrons, keeping overall visitors to an area
more or less steady.
This alternative would be the easiest to implement and monitor because seating
capacities would be governed the fire code Town wide. This could be accomplished
through the attached ordinance amendment. This would not change the number of
required parking spaces based on square footage, or any Parking Assessment District
credits.
ALTERNATIVES (cont’d):
PAGE 5
MAYOR AND TOWN COUNCIL
SUBJECT: AMENDMENTS TO SECTION 29.10.150 OF CHAPTER 29 OF THE LOS
GATOS TOWN CODE TO REVISE THE REQUIRED PARKING REQUIREMENTS FOR
RESTAURANTS
SEPTEMBER 21, 2016
2. Accept the Planning Commission’s recommendation to decouple seats and parking, and
allow seating capacities to be governed by maximum fire code occupancy or another
square footage ratio within the Downtown, C-2 zone only.
The idea of separating the requirements for downtown was discussed at the Planning
Commission, although no specific guidance was included in the motion. Given that there
is a pool of shared parking in this commercial district, patrons often visit more than one
merchant location while only parking in one space which would lend itself to supporting
a calculation method for seating capacities other than parking space credits.
This alternative would require adopting the attached ordinance language and
amendments to the C2 zoning for restaurants. If the Council elects this alternative staff
would draft an amendment within an appropriate Code section to reflect the provisions.
3. Amend the Code to remove the seating capacity language and enact a policy that
regulates seats.
If the Council would like the ability to limit seats in a manner that could more easily be
revisited and modified over time, the Council could adopt the attached ordinance, and
direct staff to draft a policy that reflects new regulations governing the maximum number
of seats allowed in an establishment. If it is discovered that the impact of this change is
not that which was expected, then policy could be modified by the Council to reflect a
more appropriate square footage calculation or different application in specific
commercial zones.
4. Do not accept the Planning Commission’s recommendation to decouple seats and
parking, and make no change to the ordinance language as written in section 29.10.150.
Staff is not recommending this option. Modifying the ordinance language to allow
businesses greater flexibility in response to the dynamic market place for restaurants and
retailers would provide the ability for business to operate more easily in Los Gatos and
would provide a more regulated code compliance process for seating capacities based on
annual inspections for health and safety from the Fire Department.
COORDINATION:
The report was coordinated between the Town Attorney’s and Town Manager’s Offices, and the
Community Development Department.
PAGE 6
MAYOR AND TOWN COUNCIL
SUBJECT: AMENDMENTS TO SECTION 29.10.150 OF CHAPTER 29 OF THE LOS
GATOS TOWN CODE TO REVISE THE REQUIRED PARKING REQUIREMENTS FOR
RESTAURANTS
SEPTEMBER 21, 2016
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Staff report prepared for the January 13, 2016 Planning Commission
2. Verbatim minutes from the January 13, 2016 Planning Commission Meeting.
3. Staff report from the March 16, 2016 Planning Commission Meeting.
4. Verbatim minutes from the March 16, 2016 Planning Commission Meeting.
5. Expanded chart of seating calculations as requested by the Planning Commission at their March
16, 2016 meeting.
6. Draft ordinance to Section 29.10.150 with amendments reflecting the removal of seats allowed
per parking de coupling of seats and parking.