Council Mtg:  March 28, 2006                                                                                                                                   Santa Monica, California

 

                                                                                                                                                                                                                  7 A

 

TO:                  Mayor and Councilmembers

 

FROM:            City Staff

 

SUBJECT:     Auto Dealership Regulation Revisions

 

 

INTRODUCTION

This report proposes a revised ordinance pursuant to Council direction provided on October 25, 2005, and recommends that the City Council certify the Final Environmental Impact Report, adopt a Statement of Overriding Considerations, adopt an amendment to the General Plan Land Use Element and introduce for first reading an Interim Ordinance to modify regulations pertaining to automobile dealerships in the City, including limited expansion of automobile dealerships on parcels located in low and medium-density residential areas.  The proposed modifications affect the C4, C6, R2, R3, LMSD, M1 and BCD zoning districts, including the Parking “A” Overlay District.

 

BACKGROUND

On October 25, 2005, the Council discussed proposed General Plan and Interim Zoning revisions applicable to automobile dealerships in the city.    

 

Resolutions certifying the final EIR and adopting a Statement of Overriding Considerations are included with this report as Attachments A and B, respectively. Proposed language for the General Plan Amendment and Interim Zoning Ordinance can be found in Attachments C and D, respectively.  Additional background on the Environmental Impact Report and proposed regulations is included in the October 25 staff report (Attachment H). 

 

ANALYSIS

Proposed Changes to the Interim Ordinance Provisions Based on Council Direction

In response to Council members’ inquiries and comments provided on October 25, and following additional public input and analysis, staff proposes the following changes to the draft Interim Ordinance:

 

1.            Conditional Use Permits (CUPs) and Performance Standards Permits (PSPs): Application of permit to entire property; consideration of a level of permitted (by right) activity; use of parking structures: The draft interim ordinance proposes to raise the CUP threshold to 7,500 square feet of additional area (currently the threshold is 5,000 square feet or a 10% expansion, whichever is smaller).  Projects below the 7,500 square foot threshold would require a PSP.  While the level of review is differentiated, standards for both permit types are identical.  Since these standards are important to protect the adjacent residential neighborhood, and are not generally difficult to achieve, it is proposed that a permit for a dealership cover the entire dealership operation on the property at which the application is made. Such an approach is also consistent with the legal non-conforming provisions of the Zoning Ordinance.

 

Some auto dealers have objected to site-wide conditions when requesting entitlements to improve only a portion of a dealership.  Dealers informed staff that the standards with which they anticipate compliance difficulties include landscaping, queuing of vehicles and possibly parking, although additional parking is only required for net new activity or new floor area.  Vehicle loading and unloading was noted as the primary concern and is addressed separately below.     

 

The Santa Monica Automobile Dealership Association (SMADA) has contended that permits should apply only to the portion of a property for which modification is requested. This, however, is not practical because operational conditions cannot be isolated to one activity or area on a property.  Furthermore, the property development requirements in the ordinance are generally feasible and applicable to existing conditions. However, it is acknowledged that in some cases, meeting the precise requirements may pose a hardship at an existing dealership site.  Therefore, the draft ordinance has been revised to include language allowing the Planning Commission, or Zoning Administrator for a PSP, to modify or waive any of the PSP/CUP standards based on a determination that compliance with that standard would create an undue hardship given existing site conditions.

 

Subsequent to the Council’s October 25 hearing, SMADA representatives requested that staff consider a proposal to create a threshold allowing small projects to proceed without a PSP, thereby permitting some small improvements by right and without subjecting the applicant to performance standards and conditions.   A simplified permit process for minor improvements may result in aesthetic enhancements and address specific spatial needs, particularly on Santa Monica Boulevard.  Therefore, a provision to allow up to 1,000 square feet of net new office or showroom-related floor area through the building permit process is proposed.  Exterior changes remain subject to Architectural Review Board approval.

 

Staff has also considered SMADA’s request to allow automobile dealerships to lease space in residentially zoned parking structures constructed under the ordinance to other dealerships, whether related or not to the on-site dealership.  Based on concern that additional use of a parking structure, such as for valet parking for a restaurant or bar, might have negative impacts on surrounding residents, the previous draft ordinance specified that a structure could only be used for inventory and employee parking associated with the on-site dealership.  The revised ordinance allows these parking structures to be used by other local dealerships, but not for non-dealership purposes.

 

2.            Loading/Unloading on-street: The Code currently requires that dealerships receive approval by the Transportation Management Division (TMD) in order to use the public right of way for loading and unloading of vehicles.  TMD has confirmed that currently there are few records on file in this regard and none providing dealerships with permission to off-load vehicles on the public right-of-way.  Similarly, individual dealerships have been unable to produce any written approval for unloading although some believe that they had previously obtained this right.  In order to address this issue, during the past few months, TMD and Code Compliance have spoken with a broad sample of auto dealers that utilize the right-of-way for unloading vehicles in order to develop criteria for allowing continued use of the right-of-way when it is safe and sensitive to neighbors’ concerns.   When the criteria have been set, an application process will be initiated and continued use of the public right-of-way will be extended to those able to comply.  As TMD evaluates each individual situation, it is possible that some dealerships may not be permitted to continue to use the public right-of-way as they currently do.

 

Staff had proposed to require dealers expanding their use through a PSP or a CUP to replace their on-street loading/unloading activity with an off-street alternative, either on-site or at another location.  This proposal was based on input received during the public outreach process and concerns expressed about noise, street-blocking and safety associated with this practice.  However, auto dealers have stated this requirement is unattainable due to existing site conditions and space requirements to accommodate large car carriers.

 

The off-street loading provision has been retained in the revised ordinance.  However, the Zoning Administrator, Planning Commission or City Council on appeal may waive this requirement based on a determination that compliance with that standard would create an undue hardship given existing site conditions.  In such cases, an on-street loading/off-loading plan on portions of streets designated as non-residential only would need to be approved as part of the entitlement process.  Vehicle inventory loading and unloading hours would be generally consistent with the City’s noise regulations, limiting this activity to between 8:00 a.m. – 5:00 p.m. weekdays, 9:00 a.m. – 5:00 p.m. Saturdays; loading and unloading of cars is not permitted on Sundays and legal holidays. 

 

The interim ordinance requires that dealerships confirm annually their compliance with unloading, test drive and alley use plans.  It is hoped that this self-reporting mechanism will foster a continuous awareness of these important regulations and encourage more proactive compliance on an ongoing basis.

 

3.            Floor-Area Ratio (FAR), Height in M1/LMSD Zones: The FAR for auto dealerships in the LMSD (Light Manufacturing Studio District) and M1 (Industrial Conservation) zones is proposed to be 1.5, consistent with the C4 zone.  It is also recommended that the height limit for automobile dealerships in the M1 and LMSD zones be increased to 35’, consistent with the recommendation for commercial zones. However, if the dealership is adjacent to a residential use, a stepback of 10 feet from the property line would be required.   This represents a modification of the October 25th proposal, which had proposed a FAR of 1.0 and height of 30’.  The lower standards were proposed because there was concern that the environmental document had not analyzed the greater FAR and height.  However, it has been verified that increased FAR and height were properly analyzed.

 

4.            Car Alarm disengagement requirement removed.  The proposed operational standard requiring disabling of audible car alarms on inventory parked in residentially-zoned parking structures has been deleted from the revised draft ordinance.  While this measure was proposed to mitigate anticipated nuisances to surrounding residential uses, the feasibility of implementation is questionable and auto dealers have testified to the Council that for some car brands the requirement would pose a hardship and may in fact put the dealership in legal jeopardy. Additionally, auto dealers have testified that changes in car alarm technology have reduced accidental activation incidents, such that the noise issues cited in the past may not be as significant a concern.

 

5.            Requiring Solar Photovoltaic (PV) systems in conjunction with residentially-zoned parking structures:  At the Council’s request, staff has prepared information for Council to consider if it wishes to require provision of some level of solar energy collection on a parking/inventory storage structure in a residential zone (Attachment F). The City will be constructing a photo voltaic (PV) system at the new 892-space Civic Center parking structure, to be mounted on a rooftop solar port.  The system is expected to produce about 30% of the building’s anticipated electricity demand.  Based on lessons learned in development of this facility, City staff analyzed the factors involved in providing PV systems on parking structures and applied them to the potential automobile dealership facilities.

 

In consultation with the City’s Environmental Programs Division, it is recommended that the Council consider the following if it wishes to require providing a Solar PV system in conjunction with construction of dealership structures on residential lots:

§         The PV system should be designed to provide 20% of the parking structure’s anticipated electricity use.  This level is recommended because it provides a relatively substantial benefit and is generally achievable given the surface area of the typical property.

§         For a prototypical R2 structure on a 15,000 square-foot lot, holding 69 cars on two levels above ground and one subterranean, the estimated price of this system would be about $9,700. For a slightly larger three story, 92-car structure, the estimated cost would be about $13,000.  The PV facility could be installed on the structure itself, on a solar port, or on the rooftop of an adjacent building at the dealership site.  It should be noted that the cost would increase by about 50% to develop a facility that would produce 30% of the building’s anticipated electrical needs.

Pending Council direction, staff has prepared draft language that would require installation of a PV system, which could be added to the draft interim ordinance.

 

6.            Entitlement process timelines for a Performance Standards Permit (PSP) or Conditional Use Permit (CUP):  Council requested information regarding the time required for CUP or PSP entitlement of a project.  The overall length of the process depends on factors that are within the City’s control in some cases and dependent on the applicant in others.  The time frames given in the table below account for only the City’s processing time based on current performance goal standards.  The City’s zoning requirements for dealerships are consistent with Building and Safety Codes.

Permit Process

Permit Review Time/ fees

ARB Review time/ fees

B&S, 1st set of comments

B&S, 2nd set of comments

PSP

8 weeks/ $989.47

6 weeks/ $1,002.82

6 weeks

3 weeks*

CUP

26 weeks or up to one year if an EIR is required/

$8,134.88 + cost of environmental documen-tation and administration.

6 weeks/ $1,002.82

6 weeks

3 weeks*

* Total building permit entitlement process depends on number of plan corrections and applicant’s turnaround time for resubmittal.

 

7.            Temporary or “Interim” Use Permits:  Council heard auto dealers’ concerns that the proposed three-month TUPs for inventory storage or one-year period for dealerships under construction do not provide adequate relief for their inventory storage needs.  They have requested that the City create an “Interim” permit process that allows use of surface lots for longer periods, suggesting a two-year term with renewal opportunities. They have indicated agreement with requiring certain site development conditions, including fencing, landscaping around the perimeter, provided staff has flexibility to modify where infeasible, and other reasonable site specific operational requirements and improvements to ensure compatibility with surrounding uses (Attachment G).

 

The primary concern regarding the dealers’ request is that authorizing a broad right to utilize available surface lots for auto storage in the city’s commercial zones may result in incompatible, relatively long-term storage lots around the city rather than development of more compatible uses.  Furthermore, a consequence might be continuation of unimproved dealerships along Santa Monica Boulevard.  Reducing the pressure to find a better solution would leave little incentive for dealers to resolve this issue with on-site structures that would enclose operations, reduce impacts on residential uses and better utilize their primary dealership properties.   

 

However, the need for storage in the near future is clear, particularly with loss of space at the Santa Monica Airport. (Currently, two dealerships, Acura & Lincoln Mercury, share a one acre area for storage; previously, there had been four dealerships utilizing an additional half-acre, but additional space is not available at this time.)  It is recommended that the originally proposed three-month term be replaced with a Zoning Administrator-approved TUP for surface storage lots in the M1 and LMSD zones for a one-year period with two possible six-month extensions.  A criterion for extension would be demonstration of effort to provide on-site storage through submittal of required applications and progress through the entitlement process.  These longer term permits would not be permitted in commercial zones for compatibility reasons as cited above. Also, to ensure available properties do not remain as auto storage lots indefinitely, consecutive TUPs at the same location would not be permitted.  Perimeter landscaping would be required unless the Zoning Administrator determines that compliance with that standard would create an undue hardship given existing site conditions.  Fencing and other barrier material would be subject to architectural review and approval.

 

8.            SMADA proposal to allow exchange of automobile storage and employee parking locations:  There are a few dealership inventory lots located on Broadway, where inventory storage for auto dealerships is now a permitted use, but free-standing surface parking lots are not allowed.  SMADA has requested flexibility to allow employee parking at these locations of which there are three that staff has identified.  At the dealers’ request, this possibility was studied in the EIR, and no significant impacts were identified. 

 

A primary concern about allowing this flexibility has been encouragement of long-term surface parking use on Broadway, which is envisioned as a mixed-use neighborhood.  However, it is recommended to allow employee parking on those BCD-zoned lots existing at the time of the interim ordinance’s approval, subject to Zoning Administrator approval of site plans both for the Broadway and dealership properties.  The plans would be reviewed to ensure that the relocation of inventory onto a dealership site does not result in a loss of overall parking capacity for the dealership’s customers and employees. In order to improve the pedestrian character of Broadway, installation of perimeter landscaping would be required and both lots would require striping and marking of employee parking spaces in compliance with the approved plans.  Tandem parking would be permitted for both inventory and employee parking.

 

9.            Parking Requirements: SMADA has requested that the Interim Ordinance include changes to the parking requirements, specifically modification of the 1:400 ratio for indoor showrooms to be the same as the 1:2,000 ratio for outdoor display.  Their reasoning is that the space used for car display generates the same need for parking, whether it is indoors or outdoors. However, a car showroom is a more spacious area that might function as a gathering area where customers would tend to remain longer.  Staff has not conducted an in-depth parking analysis, since current parking requirements were not identified as an issue in the public outreach process.  While the HR&A study conducted for SMADA included recommendations for achieving an appropriate parking supply, its recommended Code modifications to do so did not include changing the required number of spaces.  It is recommended that this suggestion be considered during the Zoning Ordinance revision process.

 

10.       Graphic representation of proposed parking structures: In response to the Council’s request, staff has prepared a cross-section of potential parking structures in relation to their adjacent residential uses (see Attachment J). It is noted that the proposed height, including projections, would be lower overall than residential structures permitted in the R2 and R3 districts, but the maximum parcel coverage for upper floors would not be limited in the same way, resulting in less articulated structures.

 

Attachment E contains a summary table of all proposed regulations for each district.

 

Public Input

City staff received a letter from SMADA’s legal counsel on November 21, 2005, and met with a group of ten auto dealers and SMADA representatives on November 22, 2005.  Questions raised at the previous Council meeting were discussed, and participants shared opinions on issues including on-street delivery, temporary/interim inventory storage, permit process details, Broadway storage lots for employee parking use and alarm disabling.  SMADA representatives stated that they do not object to compliance with development standards generally, provided that staff is granted authority to provide waivers in case of hardship and infeasibility.  SMADA sent another letter on December 6, following up on some issues discussed at the meeting. Attachment F contains copies of all correspondence received since October 25.

 

PUBLIC NOTIFICATION

Pursuant to Municipal Code Section 9.04.20.22 and consistent with CEQA requirements, staff notified a mailing list representing residents and property owners that live within 500 feet of an existing dealership as well as individuals who have commented on the processes and/or asked to be included in the mailing list.  In addition, a notice was published in the California Section of The Los Angeles Times at least ten consecutive calendar days prior to the hearing.  A copy of the hearing notice is contained in Attachment I.

 

BUDGET/FINANCIAL IMPACT

The recommendation presented in this report does not have any direct budget or fiscal impact. Regulations proposed herein may result in development of projects that might result in additional tax revenues.

 

RECOMMENDATION

It is recommended that the Council take the following actions:

1.      Adopt the attached Resolution to certify the Environmental Impact Report,

2.      Adopt the attached Resolution to approve a Statement of Overriding Considerations based on the project’s public benefits;

3.      Adopt the attached Resolution to amend the Land Use Element of the General Plan, modifying Policies 1.2.2 and 1.2.3, based on the attached findings.

4.      Introduce for First Reading an Interim Ordinance modifying regulations related to automobile dealership uses.

Prepared by:              Andy Agle, Interim Director

Amanda Schachter, Planning Manager

Jonathan Lait, AICP, Principal Planner

Elizabeth Bar-El, AICP, Senior Planner

City Planning Division

Planning and Community Development Department

 

Attachments:

A.                 Resolution Certifying the Final Program Environmental Impact Report

B.                 Resolution Adopting a Statement of Overriding Considerations

C.                Resolution to Adopt the General Plan Land Use Element Amendment

D.                Proposed Interim Ordinance

E.                 Summary Table: Proposed Auto Dealership Interim Ordinance Policies

F.                 Parking Structure PV System spreadsheet

G.                Public Comments received since October 25, 2005

H.                 October 25, 2005 Staff report:

I.                     Notice of Public Hearing

J.                  Cross-sections of potential R2/R3 parking structures compared with permitted multi-family structure.

K.                 Environmental Impact Report (available online: http://www,santa-monica.org/planning/commission/agendas/FEIR.pdf)