Planning staff presented a broad draft of the proposed 2026 inland zoning-code update and sought commissioner input on use classifications, temporary uses, neighborhood-serving commercial rules, vacation-rental licensing and enforcement, outdoor lighting limits, supportive housing alignment with state law, and future design-standards and wireless updates.

The update’s scope: Staff said the inland code is being updated in sections; this session covered non-design elements and is intended to return for a public hearing in January or February. Key code changes proposed include removing "timber production and harvesting" as a use classification (tree removal is handled in other regulations), reclassifying recycling collection as an accessory use, adding a "renewable energy facility" use classification to streamline permitting, and creating an "outdoor visitor-serving markets" classification to allow appropriate interim activation of vacant parcels.

Neighborhood markets and permitting: Staff proposed making neighborhood-serving markets in residential zones subject to a conditional use permit rather than an overlay amendment, to reduce process time. Commissioners debated a draft limit to corner or nonlocal-street locations for new corner markets; after discussion staff indicated willingness to remove the street-location standard and consider tiered permitting (easier approvals on arterials, administrative review for local streets).

Housing, rentals and supportive housing: Staff updated definitional language to align with state law (for example, certain employee housing responses and supportive housing placement) and proposed reframing short-term rentals so conversions of residences are "vacation rentals" with a home-share vs full-unit distinction. Staff said the city currently has about 80 permitted short-term rentals and roughly 30 unpermitted listings identified through host-compliance data; enforcement letters have been sent and staff is exploring lien or assessment options for noncompliant properties.

Outdoor lighting and the Gulch Greenway: Staff proposed quantitative shielding and light-trespass standards, color-temperature limits for string lights, and a special-events exemption; the proposed changes respond in part to Waterkeeper recommendations and California Department of Fish and Wildlife guidance on darker, warmer lighting to reduce wildlife impacts. Staff also proposed an administrative-adjustment pathway with criteria for safety and historic-character exceptions.

Other changes and next steps: Staff recommended permitting artisan manufacturing principally in the hinge industrial zone, adding instructional services and renewable-energy facilities in targeted zones, embedding common vacation-rental conditions (waste storage, long-term bike parking) into code, consolidating permit steps in the OpenGov system, clarifying density-bonus administrative processes and regulatory-agreement recording for affordable housing, and adding small-cell wireless provisions in a future package. Staff said they plan to return with the design-standards portion and a public hearing in February.

Attribution: Quotes and attributions in this article come from planning staff and commissioners as recorded in the public meeting transcript; where a speaker name was not provided in the record, attribution uses the label "Planning staff" or "Unidentified Commissioner." The transcript contains no final votes or ordinance adoptions for the code updates at this meeting.

Next steps: Staff will prepare a second package addressing design standards and wireless facilities and return to the commission for a hearing expected in February.