DATE: March 22, 2004
TO: Mayor John Howe
FROM: Ron Swegles, Councilmember
Julia Miller, Councilmember
Laura Babcock, Planning Commission Chair
SUBJECT: New-car Autodealers’ Subcommittee Report
On January 29, 2004, you appointed Councilmember Ron Swegles (Chair), Councilmember Julia Miller, and Planning Commission Chair Laura Babcock to a subcommittee to look into how the City can support new-car autodealers in cooperative marketing and other programs to strengthen the Sunnyvale new-car autodealers. We were also tasked with identifying concerns new-car autodealers have and what the City can do to address those concerns. As per your request, please accept this report with our findings and recommendations.
We met with eleven of the twelve new-car autodealers located in Sunnyvale. We met with representatives from:
1. Regal Dodge
2. Pearson Automobile
3. Sunnyvale Chevrolet
4. Hopkins Honda
5. Sunnyvale Toyota
6. Lincoln Mercury Kia
7. Sunnyvale Acura
8. Falore Chrysler Jeep
9. Falore Nissan
10. Sunnyvale Volkswagen
11. Sunnyvale Ford
We were unable to meet with Sunnyvale Nissan’s representatives because they are in the process of an ownership change. The dealership will re-open in about six (6) weeks as “Sunnyvale Hyundai”. The new owner plans on updating the building and staff will continue working with the new owner during the remodeling process.
The new-car autodealers commented that their competition is the dealers located on Stevens Creek Auto Row and Capitol Expressway Auto Row. The autodealers have formed a “Sunnyvale Auto Dealers Association”. The focus of the association will be coordinated marketing with a goal of drawing more customers to Sunnyvale.
Signs are the new-car autodealers main concern. Signs came up repeatedly during the one-one conversations we had with the new-car autodealers. Their impression of the Sunnyvale sign code is that it is very restrictive. The majority of the new-car autodealers said that they do not want El Camino Real to look “garish” or “ugly”, but they do need the flexibility to create an “atmosphere” that will attract customers to their place of business. They would like to be allowed to install signs that use the larger letters recommended by the auto manufacturers.
There was also a consensus amongst the new-car autodealers that signs (identifying “Sunnyvale Auto Row”) on Highway 85 and Lawrence Expressway would be extremely helpful in promoting their presence in Sunnyvale.
Another major concern identified by the new-car autodealers was that Sunnyvale residents do not know that the autodealers are located in Sunnyvale. They would like the City to do an “awareness campaign” to promote their presence and their financial contribution to the City’s general fund.
Based on concerns brought up during the one-one meetings, we identified and are making recommendations on the following action items:
|
Action Item |
Status |
Completed |
|
Formation of a Sunnyvale Autodealers Association |
They have agreed to form an association. The name is: Sunnyvale Auto Dealers Association. |
3/10/04 |
|
Update new-car autodealers on current sign code and sign opportunities |
Planning provided a brief overview of current sign code at March 17 meeting. Planning staff offered to meet with each auto dealer to answer specific questions pertaining to their location. |
3/17/04 |
|
Allow a “yearly” or “monthly” permit for special events |
They can apply for a permit for the total number of events allowed in the code. They will pay the same amount in fees as they would if they were to apply for each event permit separately. The yearly permit is a matter of convenience and it will not decrease the amount of fees being collected. |
3/17/04 |
|
Allow auto dealers to have large American flags at their business locations. |
Planning provided a brief overview of the flags they are currently allowed at March 17 meeting. Planning staff offered to meet with each auto dealer to answer specific questions pertaining to their location. |
3/17/04 |
|
Use City’s communication tools to promote autodealers. |
As requested by Mayor Howe, staff worked on a “Sunnyvale Autodealers Map” to be included in the Spring Quarterly Report. The report will be mailed to all Sunnyvale residents and City employees around April 1.
Subcommittee is not recommending any additional City tools be used, as this may be perceived as the City favoring the Autodealers and other groups may want the same assistance and promotion. |
3/9/04 |
|
Landscaped berm on El Camino Real median (between Mathilda & Pastoria) is very high and blocks the westbound traffic’s visibility of businesses. |
Public Works staff trimmed the ivy and trees on the berm. |
3/17/04 |
|
Tent Sale. This should be in cooperation with the Credit Unions. |
Subcommittee is very much in support of this event.
June through September was identified as potential dates for the event. Staff and Sunnyvale Dealers Association will continue working with Star One Credit Union and Valley Credit Union to secure a date. The Downtown and Moffett Park were identified a potential places for the event. |
|
|
Revive the “Shop Sunnyvale” banner program. |
Subcommittee recommends bringing this item to the entire City Council.
A number of years ago, council adopted an un-codified ordinance to allow decorative banners by autodealers (see attached ordinance). A similar ordinance can be brought to the City Council for consideration—Council can have the option of approving the ordinance as a pilot program or as a permanent revision to the Code. A program similar to the previous pilot program can be accomplished within the current workload. However, if Council requires further research into what other cities are doing, this would require re-prioritization of current workload. |
|
|
Signs on Highways 85 and 280 |
Subcommittee recommends that this item be pursued further and recommends that a letter, from Mayor Howe to Caltrans District 4 Director Bijan Sartipi, asking for further assistance on this item be sent.
Caltrans stated that City Council, via a resolution, must change the name of El Camino Real to “Sunnyvale Auto Row”, in order to add a “Sunnyvale Auto Row” sign on HWY 85. Directional ground signs on the 280 Sunnyvale/DeAnza exit are already installed. (see attached letter from Caltrans). |
|
|
Sign on Lawrence Expressway |
Subcommittee recommends that this item be pursued further and recommends that a letter, signed by Mayor Howe to Sunnyvale County Board of Supervisors, asking for their assistance on this item be sent.
The County said that they do not allow private advertisement on County right of way. The City must change the name of El Camino Real to “Sunnyvale Auto Row”. An alternative is to contact private property owners adjacent to Lawrence Expressway and put a sign on private property. |
|
|
Pursue modification to landscaping requirements to allow more display area and revisions to the Sign Code to allow balloons during the weekday; Allow a higher number of signs per parcel; increase the size of free standing signs; and/or allow more than one attached sign per parcel. |
Subcommittee recommends that this item be brought to the entire City Council immediately.
There have been several ownership changes in the last year. Subcommittee sees this item as a business retention tool. The subcommittee recognizes that workload to some departments must be adjusted in order to accommodate this item. A workload reprioritization would be needed, specifically in the Community Development Department. Some Study Issues, within the Community Development Department, that ranked above the line would have to be moved to below the line in order to work on this item. |
|
The subcommittee met with the twelve autodealers together to discuss the action items being recommended. The autodealers are very appreciative that the City is working with them and agreed that revisions to the sign code are very important and should be explored right away in order to continue the momentum on this project.
While some of the items have been completed, we are requesting that the items that require policy change be brought to the entire City Council’s attention as soon as possible.
The subcommittee respectfully submits this report and is ready to answer any questions.