2777 Shattuck Ave Addendum to Revised Applicant Statement ... · Addendum to Revised Applicant...

2777 Shattuck Ave

Addendum to Revised Applicant Statement

August 5, 2016

This Addendum to Revised Applicant Statement is hereby submitted to the City of Berkeley to

address certain issues raised by the members of the Zoning Adjustments Board’s public hearing

on June 9, 2016. Specifically, this Addendum addresses the following:

1. Primary Use is Automotive Sales

We continue to rely upon the City’s own operational definition that service is ancillary to sales.

Further, in the absence of a clear methodology for “measuring” which comprises primary

versus ancillary, we have proposed three metrics, including areas used for “sale” compared to

those used for “service,” number of employees in each of the uses, and finally, the gross sales

from each of the uses. All these three metrics support our conclusion that automotive sales are

the primary use of the dealership.

Using the “building” areas only, at the exclusion of the areas of the parking lot dedicated to

auto sales, is arbitrary and unfounded.

Below, we are providing updated area calculations dedicated to each of the uses:

ATTACHMENT C ZAB 09-08-16 of 11

Addendum Berkeley Honda Applicant Statement ZAB Sept 8, 2016

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Sales versus Service Areas

Total 2777 Shattuck Total 2747 Adeline

Sales Service Sales Other

Auto Sales

5,649 5,649

Auto Display

2,600 2,600

Honda Parking

2,134 2,134

Landscaping

1,602 1,602

Auto Service

13,169 9,877

Service for new/used vehicles (for sale)

3,292

Auto Parts for Service

946

946

Atuo Parts for Sale

946

946

Filing storage

2,099 2,099

Auto Sales/Inventory

Kirala Parking

4,829 3,300

Totals

22,809 11,986

10,823

11,165

2,600

7,036

53% 47% 23% 63%

Summary of Areas:

Sales Service

2777 Shattuck

11,986

10,823

2747 Adeline

2,600

Total

25,409

14,586

10,823

% 57% 43%



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Within the definition of auto sales, the City has already anticipated that “ancillary services” may

include “repair, maintenance, bodywork and other service of automobiles.” The City is not at

liberty to ignore the foundational definition of auto sales and create a new rule that service will

be deemed primary due to some subjective calculation of the “scale” of the uses. Moreover, as

described in greater detail below, there are three reasons the true scale of sales versus service

at Berkeley Honda validates the conclusion that sales are primary.

First, even under the staff’s analysis, which focuses on the square footage of the project that is

devoted to sales versus service, the gross square footage for sales is greater than that for

service. Thus, when staff asserts that it seeks to have the service occupy no greater area than

sales, that has already been accomplished without the need for staff to recommend arbitrarily

to shrink the service area or grow the sales area within project.

Second, when measured by number of employees devoted to sales versus service, the

dominance of the sales function is even clearer. Only about 35% of the workforce is devoted to

service while the balance is devoted to sales.

Third, and perhaps most importantly, the overall revenue of the dealership is driven by car

sales, not service. Roughly 90% of the dealership’s income derives from car sales. That is the

very definition of the primary purpose of the business.

Employees

Berkeley Honda hires approximately 40+ employees who work different shifts seven days a

week. Of these, there are a total of 9 technicians/mechanics and three other support staff for

the service department. Allocating an equivalent of 3 more FTEs from other staff to service,

there are a total of 15 of the 40+ employees allocated to service, while the rest support the

sales department of the dealership. This ratio of 15/40 overstates the service employees’ ratio

because the service department is also open for fewer hours per day and per week than sales,

making the percentage of employees working on service something less than 35%, while 65% or

more are devoted to new car sales.

Dollars & Cents:

Berkeley Honda’s, and most full-service auto dealerships, primary business is the sale of

automobiles, both new and used. Auto service is simply an ancillary activity to support the sale

of the vehicles and to bring repeat customers. Historically, and consistently, the revenues from

Service have represented 4%-6% of Berkeley Honda’s annual gross receipts. Enclosed, please

find a letter from Berkeley Honda’s CPA, Mr. Eric D Johns from Pomarses & Co., LLP



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representing, “Over the last three years the revenue generated from the sale of new and used

vehicles and parts represented 96% of the total revenue of the dealership, the service

provided by the dealership was approximately 4%.”

Using any of the metrics above, Berkeley Honda’s proposed auto service is ancillary to the auto

sales. Accordingly, there is no rational basis for the ZAB to arbitrarily cut Honda’s service area

down in size to achieve a 50/50 balance of sales and service space within the 2777 building. The

notion of an evenly split area of uses within that structure is nowhere required for auto sales to

be primary and auto service to be ancillary. Indeed, it is common for auto dealerships to

require more enclosed space for service than is devoted to auto sales. A large area of most

dealerships is devoted to the display of cars for sale that are stored outside. That is true of

Berkeley Honda at its proposed new location and was true of Berkeley Honda at its prior

location two blocks up Shattuck Avenue.

Other Local Dealerships

We are attempting to collect similar data from the other three Berkeley dealerships regarding

space allocated to their sales, service and parts, and if successful, will subsequently submit our

results to the City.

A visual inspection of the local dealerships has provided the following information regarding the

number of service bays:

Dealership Address

# of Service

Bays

Honda of Oakland 3329 Broadway 18

Honda of El Cerrito 11755 San Pablo Ave 22

McKevitt Fiat/Jeep 2700 Shattuck Ave 17

Toyota of Berkeley 2400 Shattuck Ave 15

Berkeley Honda 2777 Shattuck Ave 14

Berkeley Municipal Code

Below, we are providing all the pertinent sections of the BMC as it relates to definition and

description of our proposed uses.



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Section 23F.o4.010 Ancillary Use: A use that is both dependent on and commonly associated with

the principal permitted use of a lot and/or building and that does not result in different or greater

impacts than the principal use.

Section 23F.o4.010 Automobile Sales: An establishment which sells, or leases long-term, new, used

or pre-owned automobiles or trucks; restored vintage, specialty, or antique automobiles or trucks; or

automobiles or trucks refurbished for alternative fuels (alternative to conventional gasoline). Ancillary

uses and services that are supporting of an automobile sales use may include the sale and installation of

automobile parts, accessories and equipment; repair, maintenance, bodywork and other service of

automobiles; loaning of vehicles to service patrons; storage of vehicles outdoors; and automobile

washes

Section 23E.16.020 Outdoor Uses Commercial and manufacturing uses shall be conducted solely

within an interior of a building unless the regulations for the District in which such use is proposed

otherwise specifically authorize such use to be conducted outside and any required Permit is obtained.

The requirements of this Section apply to, but are not limited to, exterior service windows, outside

automatic teller machines, and the outside storage of goods, containers and/or materials. (Ord. 6478-NS

§ 4 (part), 1999)

Section 23E.52.060.E. New or relocated automobile or motorcycle sales uses with outdoor activities,

including but not limited to storage and display of vehicle inventory, shall be limited to the Dealership

Overlay Area, which includes all lots with a frontage on Adeline Street, Shattuck Avenue or Ashby

Avenue between Dwight Way and the south side of Alcatraz Street, with the exceptions of the Ashby

BART Station block and all lots confronting this block and lots with frontage exclusively on Shattuck

Avenue south of Ashby Avenue. (Ord. 7425-NS § 13, 2015: Ord. 7304-NS § 2, 2013; Ord. 6478-NS § 4

(part), 1999)

Section 23E.52.070.F. New or relocated automobile or motorcycle sales uses are subject to the

following standards. Expansions or modifications of existing uses are encouraged to meet these

standards where feasible and shall not worsen a non-conformity with these standards. These standards

may be modified by an AUP subject to Section 23E.52.090.E. 1. Outdoor vehicle display shall only be

permitted along Shattuck Avenue and Adeline Street and shall be limited to 30 percent of the lot

frontage on those streets; 2. A maximum of 40 percent of the lot area may be used for outdoor uses,

including but not limited to vehicle display and storage. Adequate landscaping and/or fencing shall be

used to filter the view of outdoor uses from the adjacent right-of-way and abutting properties, with the

exception of outdoor vehicle display; 3. Vehicle and repair service entries may not exceed 20 percent of

the primary lot frontage, no entrance may exceed a width of 20 feet. The primary street frontage is the

frontage towards which the primary building entrance is oriented; 4. At least 60 percent of any new

building shall be within 10 feet of the right of way along the primary street frontage and 60 percent of

the street-facing facade shall be comprised of clear glass; 5. All vehicle repair activities shall be



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conducted indoors; 6. All noise-generating equipment and activities, such as vehicle repair, shall be

shielded by noise attenuating materials; outdoor amplification is prohibited;

7. Exterior light standards and fixtures shall not be taller than 20 feet, shall achieve uniform light

coverage and minimize glare, shall use light cutoffs to control light spillover onto adjacent properties

and urban sky glow, and shall use low energy light fixtures consistent with the City’s goals for energy

efficiency; and 8. No vehicles shall be stored in the public right-of-way. (Ord. 7304-NS §§ 3, 4, 7/16/13;

Ord. 6854-NS § 20 (part), 2005: Ord. 6478-NS § 4 (part), 1999)

Section 23E.52.90.E. The Zoning Officer may approve a modification of the standards applicable to new

or relocated automobile or motorcycle sales uses if it finds that doing so is necessary to facilitate

incorporation of an existing structure, to achieve greater consistency with the surrounding street

pattern, to buffer impacts to an adjacent residential district, or to accommodate dealership operations.

(Ord. 7304-NS § 6, 7/16/13; Ord. 6856-NS § 16 (part), 2005: Ord. 6478-NS § 4 (part), 1999)

2. Noise Considerations

Our sound consultant, has updated the report dated May 13, 2016 to address the following

issues:

Are the existing non-operable windows on the South wall of the building

sufficient to keep the interior noise level from exceeding the City’s threshold in

the residential areas on the East?

Would the Service department noise exceed the City’s night time threshold?

Would the Service department noise exceed the City’s weekend thresholds?

Would night-time parts delivery, between mid-night and 7 AM, generate noise

that exceed the City’s night-time thresholds?

Would roof-top equipment generate noise within acceptable City’s thresholds?

The consultant’s addendum to the report are attached to this Addendum.

3. Adeline Lot Redesign/Building Colors

At the suggestion of the ZAB, we have revised the programming for the Adeline lot. To reduce

traffic in and out of Shattuck from this lot, the curb cut and driveway access/egress from

Shattuck is being removed. Our traffic engineer and the City’s traffic engineers have considered

this closure on Shattuck and have concluded it will improve traffic flow on Shattuck Avenue

between Ward and Stuart Streets. Kirala’s 9 spaces will remain on this lot and its customers will

access and egress this lot from Adeline Street.



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Ward Street parking lot will provide parking for Berkeley Honda (9) and for Sconehenge bakery

(2).

The Adeline lot has been redesigned to screen automobiles by increased landscaping and solar

umbrellas along with amenities for public seating and gathering on the City-owned portion of

the lot. We are proposing to install additional landscaping and public amenities on the City-

owned lot conditioned on our ability to secure a license/permits from the City of Berkeley for

the same.

A new color scheme rendering has been developed and is being submitted along with this

Statement.

4. Parking

Except for 1-2 vehicles which are towed daily to the dealership for service, customers drive

their vehicles to the dealership and leave them at the dealership. Service bays are the physical

space that function both for servicing the vehicle, and during this service, the vehicles are

“parked” at the dealership. Unlike all other commercial activities, the service component of a

dealership should not require “parking” for the very vehicles that are left in the service bays.

We are therefore requesting that the City count the service bays effectively as parking spaces

for the service component. Below, is a table showing all the parking spaces required versus

proposed.

Berkeley Honda will offer all employees free transit passes for the duration of their

employment at Berkeley Honda.



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Berkeley Honda Parking Allocation

REQUIRED PROPOSED

parking Stuart St

Lot Ward St

Lot Aeline

Lot Shattuck

Bldg

Kirala 2100

shattuck 9 9 9

Sconehenge Bakery

2102 Shattuck 7 5 2 7

Sconehenge café

2787 Shattuck 8 8 8

Honda Service 2777

Shattuck 27 9 4 14 27

Honda Sales 2747

Adeline 17 17 17

Total Spaces available 68 13 11 30 14 68

5. Hours of Operation

Berkeley Honda is requesting to have approval to provide sales and service seven days a week

from 7 AM to 10 PM. This request is simply based on projections that future life-styles will

demand that from the dealership. Berkeley Honda’s current practices do not include

operations at these hours.

For Service, it is expected that no service work will be conducted on Sundays and that service

personnel finish their work at 5 PM Mondays-Saturdays, but the service personnel will be at the

dealership for customers to pick up until 7 PM.

For Sales, it is expected that the dealership will continue its current practices of operating

Monday – Friday from 7 AM–7 PM, Saturdays 8 AM-7 PM and Sundays 10 AM-6 PM.



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6. Alternative Fuel Vehicles

Berkeley Honda is one of few Honda dealerships certified by US Honda to sell and service

electric vehicles (EV) and hybrid vehicles. Berkeley Honda will provide two electric charging

stations inside the service department, available to the public on Saturdays and Sundays.

7. Air Quality

Berkeley Honda’s state-of-the-art automotive service system will be designed and installed as

per all requirements of the manufacturer, the City of Berkeley, Bay Area Air Quality

Management District and State of California. As submitted previously, the service operation of

the dealership is highly regulated by multiple environmental protection agencies, such as the

City’s own Toxics Management Division, the Fire Department and BAAQMD.

An example of the exhaust system control being considered is Harvey Overhead Exhaust Rail &

Telescopic System to control and manage internal exhaust. This system will be connected to

whatever the City’s Building Safety requires to “filter” the exhaust before dissipating it into the

open air.

HARVEY OVERHEAD EXHAUST SYSTEM-MODEL #TS-30 (TELESCOPIC®

DESIGN)

HARVEY’S “TELESCOPICALLY®” Designed Overhead Exhaust Drop #TS-30 with Non-Crush Tubing and Adapter (having sections

which slide one into another)

The Harvey model #TS-30 is “TELESCOPICALLY®” designed to simplify and improve upon existing overhead exhaust drops

currently available. The #TS-30 consists of three lengths of light weight flexible tubing which slide one into another and give

the appearance of only one 6’ length of tubing attached to the overhead duct.

The tubing and tailpipe adapter which connect to vehicle are non-crush neoprene rubber. Drive over it! The tubing and

adapter cannot be crushed or damaged. Pull-up sets are not required with the #TS-30 & #TS-40 drops.



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FEATURE

NON-CRUSH NEOPRENE RUBBER (600 DEGREES) TUBING “TELESCOPICALLY®” DESIGNED NON-CRUSH NEOPRENE RUBBER

(600 DEGREES) TAILPIPE ADAPTER ONE SIZE TAILPIPE ADAPTER FITS ALL EASE OF INSTALLATION

BENEFIT

DRIVE OVER IT! THE TUBING WILL NOT CRUSH OR HAVE TO BE REPLACED LIKE HOSE WITH AN INTERNAL WIRE HELIX.

ELIMINATES THE HANGING “ELEPHANT TRUNKS” AS WELL AS HAND OR WINCH TYPE PULL UP SETS.

WILL NOT SCRATCH VEHICLE OR CHROME EXHAUST PIPES. CAN BE DRIVEN OVER WITH NO HARM TO THE ADAPTER OR

VEHICLE

NOT NECESSARY TO SWITCH ADAPTERS OR USE ADDITIONAL ACCESSORIES.

SHIPPED COMPLETELY ASSEMBLED, SUPPLIED WITH GALVANIZED SLEEVE THAT SLIPS OVER 5” STUB OR “T” OF DUCT WORK.

MODEL #TS-40 IN STOCK FOR MEDIUM AND LIGHT DUTY DIESEL VEHICLES WHERE 3” TUBING IS INADEQUATE.

HARVEY HRX-812 EXHAUST RAIL

Elliptically shaped aluminum rail allows for efficient airflow and sleek styling

Easy-glide trolley assembly allows drops to be shared among bays (check state and local codes)

12’ standard rail length for ease of installation – custom lengths also available

Pinned joints to guarantee easy alignment of rail sections

“Positive Pull” – nut & bolt joining system with gasketed seams to ensure a simple, trouble-free installation

Trolley assembly can be fitted with the standard TS-30 drop or the #3-Skyhook balancing pull-up configuration

Heavy duty trolley assembly is fitted with eight ball bearing wheels for smooth operation

8. State Franchise Laws

As provided previously, between 2008 and 2014, Berkeley Honda conducted an extensive search to relocate from their previous location at 2600

Shattuck Avenue. As they identified appropriately zoned sites in northwest and southwest Berkeley that met their and US Honda’s site selection

criteria, the State Franchise laws prohibited them from moving their dealership to those locations. In 2014, Berkeley Honda lost their selected

site at 1500 San Pablo to Shorentsein’s offer to the then owner of the property.

The State law allows existing Honda dealers in El Cerrito and Oakland to protest such a relocation if it falls within a 10-mile radius of their

dealership. However, the law provides an exemption for an existing facility to move with the same city and within a one-mile radius of their

existing dealership. The subject site was selected (and received the Council’s unanimous Zoning Overlay) for Honda for those reasons.

Below, please find the text of the State Law.



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3062. (a) (1) Except as otherwise provided in subdivision (b), if a franchisor seeks to enter into a franchise establishing an additional motor vehicle dealership, or seeks to relocate an existing motor vehicle dealership, that has a relevant market area within which the same line-make is represented, the franchisor shall, in writing, first notify the board and each franchisee in that line-make in the relevant market area of the franchisor’s intention to establish an additional dealership or to relocate an existing dealership. Within 20 days of receiving the notice, satisfying the requirements of this section, or within 20 days after the end of an appeal procedure provided by the franchisor, a franchisee required to be given the notice may file with the board a protest to the proposed dealership establishment or relocation described in the franchisor’s notice. If, within this time, a franchisee files with the board a request for additional time to file a protest, the board or its executive director, upon a showing of good cause, may grant an additional 10 days to file the protest. When a protest is filed, the board shall inform the franchisor that a timely protest has been filed, that a hearing is required pursuant to Section 3066, and that the franchisor may not establish the proposed dealership or relocate the existing dealership until the board has held a hearing as provided in Section 3066, nor thereafter, if the board has determined that there is good cause for not permitting the establishment of the proposed dealership or relocation of the existing dealership. In the event of multiple protests, hearings may be consolidated to expedite the disposition of the issue. (2) If a franchisor seeks to enter into a franchise that authorizes a satellite warranty facility to be established at, or relocated to, a proposed location that is within two miles of a dealership of the same line-make, the franchisor shall first give notice in writing of the franchisor’s intention to establish or relocate a satellite warranty facility at the proposed location to the board and each franchisee operating a dealership of the same line-make within two miles of the proposed location. Within 20 days of receiving the notice satisfying the requirements of this section, or within 20 days after the end of an appeal procedure provided by the franchisor, a franchisee required to be given the notice may file with the board a protest to the establishing or relocating of the satellite warranty facility. If, within this time, a franchisee files with the board a request for additional time to file a protest, the board or its executive director, upon a showing of good cause, may grant an additional 10 days to file the protest. When a protest is filed, the board shall inform the franchisor that a timely protest has been filed, that a hearing is required pursuant to Section 3066, and that the franchisor may not establish or relocate the proposed satellite warranty facility until the board has held a hearing as provided in Section 3066, nor thereafter, if the board has determined that there is good cause for not permitting the satellite warranty facility. In the event of multiple protests, hearings may be consolidated to expedite the disposition of the issue. (3) The written notice shall contain, on the first page thereof in at least 12-point bold type and circumscribed by a line to segregate it from the rest of the text, the following statement: “NOTICE TO DEALER: You have the right to file a protest with the NEW MOTOR VEHICLE BOARD in Sacramento and have a hearing on your protest under the terms of the California Vehicle Code if you oppose this action. You must file your protest with the board within 20 days of your receipt of this notice, or within 20 days after the end of any appeal procedure that is provided by us to you. If within this time you file with the board a request for additional time to file a protest, the board or its executive director, upon a showing of good cause, may grant you an additional 10 days to file the protest.” (b) Subdivision (a) does not apply to either of the following: (1) The relocation of an existing dealership to a location that is both within the same city as, and within one mile from, the existing dealership location. (2) The establishment at a location that is both within the same city as, and within one-quarter mile from, the location of a dealership of the same line-make that has been out of operation for less than 90 days. (c) Subdivision (a) does not apply to a display of vehicles at a fair, exposition, or similar exhibit if actual sales are not made at the event and the display does not exceed 30 days. This subdivision may not be construed to prohibit a new vehicle dealer from establishing a branch office for the purpose of selling vehicles at the fair, exposition, or similar exhibit, even though the event is sponsored by a financial institution, as defined in Section 31041 of the Financial Code or by a financial institution and a licensed dealer. The establishment of these branch offices, however, shall be in accordance with subdivision (a) where applicable. (d) For the purposes of this section, the reopening of a dealership that has not been in operation for one year or more shall be deemed the establishment of an additional motor vehicle dealership. (e) As used in this section, the following definitions apply: (1) “Motor vehicle dealership” or “dealership” means an authorized facility at which a franchisee offers for sale or lease, displays for sale or lease, or sells or leases new motor vehicles. (2) “Satellite warranty facility” means a facility operated by a franchisee where authorized warranty repairs and service are performed and the offer for sale or lease, the display for sale or lease, or the sale or lease of new motor vehicles is not authorized to take place.


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