City Council Meeting: May 13, 2008

Agenda Item: 7-C

To:                   Mayor and City Council

From:              Eileen Fogarty, Planning & Community Development Director

Subject:          Extension of Interim Ordinance on modified Auto Dealership Regulations through August 8, 2010

 

Recommended Action

Staff recommends that the City Council introduce for first reading an interim ordinance extending Ordinance Number 2186 (CCS) until August 8, 2010. 

 

Executive Summary

Interim ordinance 2186 (CCS) originally introduced in April 2006 modified regulations pertaining to automobile dealerships in commercial and industrial zones and allows existing dealerships to intensify activities in adjacent residentially-zoned lots.  There are no proposed changes to the current interim ordinance. This report also summarizes permit activity based on the interim ordinance in the last two years.  Staff anticipates that these regulations will be revised and incorporated as appropriate into the Zoning Code as part of the upcoming comprehensive update.

 

 

Discussion

The Santa Monica Auto Dealers Association (SMADA) and the Santa Monica Chamber of Commerce hired HR&A Associates to prepare an economic analysis and propose modifications to auto dealership regulations, which they presented to the City in February 2001.  Based on that report, the Council directed staff to study the SMADA’s proposals as well as to analyze conflicts with neighboring residential uses.  A team comprising Cotton/Bridges/Associates, Moore Iacofano Goltsman, Inc. (for community participation facilitation) and Economics Research Associates (for economic background and analysis) was hired in 2003 to review the HR&A study, independently evaluate the issues involved and recommend proposals for amending the City’s policies regarding automobile dealership uses.  The extensive outreach process focused on residents in the neighborhoods near Santa Monica and Wilshire Boulevards as well as the auto dealers and surrounding businesses. The Planning Commission held a hearing on the matter in April 2004, and in September 2004 preliminary findings were presented to the Council. Following environmental review in compliance with CEQA, an interim ordinance was proposed to the Council. On March 28, 2006, Council approved revised standards governing automobile dealerships in commercial and industrial zones, including development of parking and inventory storage structures located on residential lots currently used by auto dealerships, through Interim Ordinance 2179.  Interim Ordinance No. 2186 (CCS) extended this ordinance, with additional modifications, on May 25, 2006.  Ordinance Number 2186 (CCS) will expire after July 10, 2008 unless extended prior to that date.

 

The proposed interim ordinance extends the following auto dealership regulations:

·          Increases allowable heights and Floor Area Ratios (FARs) and modifies thresholds for permit processes (Performance Standards Permit (PSP) and Conditional Use Permit (CUP)) for new and existing auto dealerships in the C4 commercial district (Santa Monica and  Lincoln Boulevards;

·           Increases heights and FARs and modifies thresholds for permit process (PSP, CUP) for expansion of existing auto dealerships in the C6 commercial district (Wilshire Boulevard);

·          Allows dealerships to be located in the M1 Industrial Zone, with increased height in both M1 and LMSD with modified thresholds for permit process (PSP, CUP);

·          Requires pedestrian orientation for projects in all districts;

·          In residential zones, includes provisions that allow construction of automobile storage or parking structures on properties already used by the auto dealership provided the facilities continue to be operated in conjunction with the adjacent automobile dealership;

·          Incorporates special standards applicable in all zones for parking structures and automobile storage lots, with additional standards for those parking structures located in residential zones and serving a dealership in the adjacent commercial zone;

·          Specifies PSP and CUP development standards applicable in all districts;

·          Allows employee parking at existing inventory storage lots in the Broadway Commercial (BCD) District with certain conditions;

·          Revises the Temporary Use Permit (TUP) process to allow temporary storage of auto inventory under certain conditions;

·          Allows the City to collect a Housing Impact Fee if R2 or R3 properties are developed resulting in potential loss of affordable housing;

·          Includes provisions permitting auto dealers that provide incentives consistent with the City’s Transportation Demand Management Ordinance (TMO) to charge employees for parking;

·          Allows a 50% FAR discount for rooftop parking.

 

This interim ordinance was adopted after substantial public input including a series of community meetings, written comments received, and discussion with automobile dealership owners and their representatives over a three year process.  The Council deliberated on its provisions and made further changes when the ordinance was extended one month later.  The Interim Ordinance anticipated large projects that might substantially redevelop and screen operations either indoors or underground in order to reduce noise and improve the aesthetic appearance of Santa Monica Boulevard. 

 

While auto dealers may be in the process of developing plans, the City has not received any applications for major projects to redevelop or construct new dealerships.  Since adoption in April 2006, two PSP and two CUP projects have been submitted by auto dealerships, in addition to a limited number of over-the-counter approvals for minor work. The PSP applications were for small sales and rental operations on Lincoln Boulevard. Both CUP applications represent proposed automobile service facility buildings on adjacent parcels at the BMW dealership at Santa Monica Boulevard and 12th Street and are currently pending. Rooftop parking is proposed at one of these properties.

 

At this time, staff recommends extension of the interim ordinance text with no changes.  The intention of the ordinance – to allow additional height and FAR to encourage auto dealers to redevelop incorporating measures that will reduce their impacts on the surrounding neighborhood – and its provisions are still relevant.

 

Looking at the LMSD zone for the long-term, with its proximity to the future Exposition Line light-rail stations, there will be discussion in the LUCE as to compatibility of a range of uses with the kind of mixed-use, transit-oriented development planned in that area, which will likely have new land use designations. 

 

Alternatives

As an alternative to the recommended action of extending the interim ordinance, Council may choose to allow this interim ordinance to expire, in which case the regulations in the Zoning Ordinance would govern auto dealership development until the anticipated Zoning Code update. 

 

Environmental Analysis

An Environmental Impact Report (EIR) was prepared and certified by the Council prior to adoption of the initial ordinance in accordance with Section 15087 of the CEQA Guidelines.   In extending this ordinance, no changes to the adopted provisions are proposed and the underlying physical conditions in the area have not materially changed since the initial environmental review was conducted.  There have been no changes to the project, changes to the circumstances under which the project is undertaken or new information which would necessitate additional environmental review under CEQA Guidelines Section 15162.

 

 

Financial Impacts & Budget Actions

The recommendation presented in this report has no budget or financial impact.

 

Prepared by:

Elizabeth Bar-El, AICP, Senior Planner

 

 

 

 

Approved:

 

Forwarded to Council:

 

 

 

 

 

 

Eileen Fogarty, Planning & Community Development Department

 

P. Lamont Ewell

City Manager

 

 

ATTACHMENTS:

A.        March 28, 2006 City Council Staff Report - Interim Ordinance 2179 (CCS)

B.        May 9, 2006 City Council Staff Report - Interim Ordinance 2186 (CCS)

C.        Proposed Interim Ordinance

D.        Correspondence from the public (if any)

 


ATTACHMENT A

 

March 28, 2006 City Council Staff Report – Interim Ordinance 2179 (CCS)

 


Council Mtg: March 28, 2006          Santa Monica, California

 

 

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)

 


ATTACHMENT B

 

May 9, 2006 City Council Staff Report – Interim Ordinance 2186 (CCS)

 


City Council Meeting: May 9, 2006

Agenda Item: _____

To:                   Mayor and City Council

From:              Andy Agle, Interim Director, Planning and Community Development

Subject:          Introduction and First Reading of an Interim Ordinance Extension Related to New Automobile Dealership Standards

 

Recommended Action

It is recommended that the Council modify one provision of the interim ordinance in order to allow auto dealers that provide incentives consistent with the City’s Transportation Demand Ordinance (TMO) to charge employees for parking, and adopt on First Reading an Interim Ordinance extending Interim Ordinance No.2179 (CCS) until July 10, 2008, amending the City’s application review procedures and zoning regulations governing automobile dealerships.

 

Executive Summary

Interim regulations for automobile dealerships will expire on July 10, 2006 unless extended.  A two-year extension will allow time for permanent regulations to be included in the new Zoning Ordinance.  Following analysis of several topics requested by the Council, one change is proposed in the attached ordinance that relates to free on-site employee parking. Additionally, clarification language is proposed regarding the performance standards to which existing dealerships are also subject. A revised Interim Ordinance Extension is included with this report as Attachment A.


Discussion

Background

Following an extensive outreach and review process, revised standards governing automobile dealerships in commercial and industrial zones, and allowing development of parking and inventory structures on residential lots that are currently used by auto dealerships, were discussed at a public hearing on March 28, 2006 and adopted on an interim basis. The provisions contained in the interim ordinance continue to be necessary to protect the public health, safety and welfare, and it is, therefore, recommended that the Council extend this ordinance until July 10, 2008.

 

At the March 28th meeting, the Council requested additional information on the following topics: allowing the use of residential and parking overlay lots for inventory storage; requiring free on-site parking; reinstating language that discounts rooftop parking floor area by 50% in calculating the floor-area-ratio (FAR); and noise concerns in the M1/LMSD zones. 

 

Previous Council Actions

The Council approved the First Reading for Interim Ordinance No. 2179 (CCS) on March 28, 2006, and Second Reading on April 11, 2006.  The interim ordinance expires on June 10, 2006.

 

 

 

Alternatives

Council requested information in order to consider possible modifications to the Interim Ordinance.  The following provides analysis of these issues and explains why one modification is proposed and others are not recommended.

 

Free On-site Parking: The Interim Ordinance continues the existing Code requirement [SMMC 9.04.14.160.a.1(c)] for on-site automobile dealership parking to be provided free of charge to customers and employees.  This requirement is intended to encourage employees and/or customers to park on-site.

 

Some automobile dealers have testified that requiring free parking to employees runs counter to the City’s efforts to reduce trips through ridesharing and transit use. The City’s Transportation Management Ordinance (TMO) requires employers with 50 or more employees to participate in the City’s TMO program, while those with 10-49 employees must register but participation is optional.  For employers subject to the ordinance, the City requires that incentives be provided to encourage ridesharing or transit, with a goal of achieving an Average Vehicle Ridership (AVR) of 1.5 employees per vehicle.  Participating auto dealerships with 50 or more employees and their most recently reported AVRs are as followsi:


Sonic Honda/Volvo         1.08

Toyota                              1.15

Lincoln/Mercury               1.13

Volkswagen/Lexus          1.62

BMW/Isuzu                       1.21

Nissan                        1.15     

Hornburg Jaguar       1.04 (first year plan)

Ford                            1.12

W.I. Simonson           1.20


 

[1] City of Santa Monica Transportation Management Division Data

 

These figures show that only one dealership, Volkswagen/Lexus, has met the target AVR.  Auto Dealerships registered with Transportation Management that have 10-49 employees include Santa Monica Acura, Santa Monica, Mitsubishi, Santa Monica Infiniti, Saab of Santa Monica and Santa Monica Auto Group.  The City does not collect data on AVR for these dealerships.

 

In order to maintain the intent of reducing commercial intrusions into residential neighborhoods and support the city’s ridership goals, it is recommended to retain the requirement to prohibit charging for available on-site parking, but add an exception allowing dealers to charge employees (not customers) for parking if rideshare and transit incentives are provided consistent with the City’s TMO program, subject to the Transportation Planning Manager’s approval. The attached Interim Ordinance has been revised to reflect this change. 

 

Inventory storage on residential and parking overlay (R2/R3 and “A”) lots: Automobile dealers have been requesting permission to use residential (R) lots at their dealerships flexibly, for surface parking and/or inventory as dictated by their needs at any given time (see letter from Santa Monica Auto Dealers Association (SMADA), Attachment C). Currently, some of these R-lots can only be used for customer or employee parking, while others have a non-conforming legal right to use them for inventory purposes [SMMC 9.04.18.040(d)]. The adopted Interim Ordinance continues to prohibit surface inventory storage on R-lots where it has not already been legally established.  

 

Modifying the ordinance to grant the dealers’ request has advantages and disadvantages. The main reason that it is recommended to continue prohibiting surface inventory storage is to encourage redevelopment of the auto dealers’ properties in a more efficient manner.  The General Plan was amended to allow automobile dealerships to build parking and storage structures on their residential lots, and the Interim Ordinance includes provisions to facilitate their development, including exemption from multi-family development standards required in these zones and allowing rooftop parking.  Those dealers that are legally entitled to have surface inventory storage on residential lots may continue to do so; other dealers who wish to use them for this purpose would be encouraged to look at ways to redevelop their parcels to utilize them to a higher degree.  Additionally, inventory storage lots would be a more intensive operation, with sales activity occurring closer to residential uses.  Even if sales activity did not occur, transporting vehicles from these lots for the customer could result in more activity than if the R-lot were used for parking.

 

Modifying the ordinance to allow inventory storage on the residential lots would, however, benefit the dealerships by improving the accessibility of inventory to show customers. This may eliminate some trips bringing vehicles from off-site locations to customers, thereby somewhat reducing traffic in the area. 

 

The Santa Monica Auto Dealers Association (SMADA) has suggested allowing surface inventory storage on R-lots in exchange for employee parking elsewhere. For instance, dealerships would be permitted to swap their R-lot parking with inventory now kept in the Broadway Commercial District (BCD). The Interim Ordinance now allows such exchanges of parking and inventory between commercial dealership lots and BCD locations.  If Council desires to change the Interim Ordinance and extend the potential of that provision to include exchanges with adjacent R-lots, staff will have alternative language to effectuate this change.  The BCD lots in question are about ¼ mile from their associated dealerships.  Additionally, dealers able to find other legal locations within a reasonable walking distance could do the same.

 

Overall, modification of the Interim Ordinance is not recommended because parking intrusion into nearby neighborhoods was one of the most consistently mentioned impacts during the public outreach process. Staff is not convinced that there is a clear, enforceable mechanism for distinguishing and monitoring inventory versus parking and is concerned that ultimately, inventory will be parked in both locations. Should the Council choose to allow inventory storage on surface lots, it is recommended that the following provisions be included:

§       Require displaced employee parking at another off-site, off-street location through an administrative review procedure similar to Section 8(a) of the Interim Ordinance;

§       Require that the off-site location be within a reasonable walking distance to the dealership (1/8 to ¼ mile);

§       Require that a specified number of customer parking spaces on the commercial dealership property be provided;

§       Prohibit sales activity on R-lots;

§       Require R-lots to revert to parking if the alternative off-site parking source becomes unavailable.

 

Fifty Percent Floor-Area-Ratio (FAR) Discount for Rooftop Parking/Storage: The potential size of an automobile dealership at any particular location will be determined by the parcel size, limitations to maximum height and floor area, and compliance with other standards, such as parking or landscaping. Throughout the interim ordinance, incentives are offered to encourage dealerships to redevelop their commercial and residential lots in ways that address their needs and long standing concerns expressed by area residents. Those incentives include increased floor area and height on most commercial properties, provisions that allow parking structures on residential lots and exempting all subterranean activity from the floor-area-ratio (FAR) calculation, which expands potential inventory storage and service capacity in a way that was not previously possible.  The discussion regarding floor area discounts for FAR calculation relates specifically to commercial properties as development on residential parcels is limited by parcel coverage; a distinctly different calculation.

 

As contained in the existing Interim Ordinance, elimination of the fifty percent discount for rooftop automobile storage is another way to encourage more activity underground in commercial districts. In addition to the capacity provided by one or two levels of subterranean activity, the increased floor area and height provisions provided in the interim ordinance far offset the loss of removing the discount from the rooftop parking calculation. Because this provision seeks to address concerns about commercial development expressed by area residents and to retain incentives to utilize subterranean space when redeveloping commercial properties, it is recommended that Council retain the current Interim Ordinance provision.  If Council wishes to reduce rooftop area in floor area calculation, language could be added to Interim Ordinance Sections 2, 3, and 5.

 

Noise regulation in industrial (M1/LMSD) areas: Council requested further clarification of standards applicable to dealerships that the Interim Ordinance now permits in the M1 industrial zone. Section 5 (e) of the ordinance specifies that any PSP or CUP issued for a dealership would be subject to the same standards set forth in Interim Ordinance Section 7 that apply to dealerships in all zones.  These standards include hour restrictions for off-loading and outdoor activities, noise control including prohibition of outdoor loudspeakers, control of test-driving routes and alley traffic and other requirements designed to make these uses more compatible with surrounding uses.  The Zoning Code already requires vehicle repair activity to occur within an enclosed structure and prohibits operation of repair facilities for both existing and new dealerships between 8:00 pm and 7:00 a.m. Monday through Saturday, with no activity permitted on Sunday.  The Interim Ordinance further prohibits all dealership activity at a location within 100 feet of a residential district between 10 p.m. and 7 a.m., which the Planning Commission may further restrict for projects subject to the CUP process.

 

As existing regulations and the interim ordinance already provide protections, no modification to the interim ordinance is recommended.

Performance Standards for Existing Dealerships:  The Zoning Ordinance requires that existing automobile dealerships comply with certain standards regarding noise impacts, vehicle off-loading, test driving, alley use, prohibition of vehicle storage on the public right-of-way, hours of operation and accessory auto rental.  In the interest of having all regulations applicable to auto dealerships in one place, the extended ordinance contains an explicit reference at the beginning of Section 7 to the requirements that pertain to existing dealerships.

 

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.

 

Prepared by: Elizabeth Bar-El, AICP, Senior Planner


 

 

Attachments:

A.                 Draft Interim Ordinance Extension

B.                 Notice of Public Hearing

C.                Correspondence received since March 28, 2006

 

 

Approved:

 

Forwarded to Council:

 

 

 

 

 

 

Andy Agle

Interim Director, Department of Planning and Community Development

 

P. Lamont Ewell

City Manager

 

 

 


ATTACHMENT C

 

Proposed Interim Ordinance