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Item 18 Staff Report Consider Adopting a Resolution Amending the Town's Alcohol Policy(-• At,WNp !pS 60/ DATE: TO: FROM: SUBJECT: MEETING DATE: 09/17IJ c, I ITEM NO. (� Z) COUNCIL AGENDA REPORT September 11, 2001 MAYOR AND TOWN COUNCIL TOWN MANAGER CONSIDER ADOPTING A RESOLUTION AMENDING THE TOWN'S ALCOHOL POLICY. RECOMMENDATION: Adopt a resolution amending the Policy Regulating the Consumption and Service of Alcoholic Beverages. BACKGROUND: On July 2, 2001, the Town Council held a study session to discuss the Town's Alcoholic Beverage Policy. The Council discussed the current policy and directed staff to return with amendments addressing comments and concerns of the Council (see study session minutes, Attachment 2). A draft policy has been prepared for the Council's review. At the study session, there was also extensive discussion about how entertainment establishments should be regulated. Staff will return with a separate report on this matter. This is a time intensive study, and will be included as part of the Community Development Department work plan for next year. DISCUSSION: The Council affirmed the policy against stand alone bars. Based on Council discussion, the word "strongly" has been added to the sentence that discourages new applications for new bars or restaurants with stand alone bars in section II.1 (see page 1 of Exhibit A to Attachment 1). A new section has been added to specify the review process for applications that includes a request for service of alcoholic beverages. This section specifies that new applications for alcohol service or a change in existing alcohol service are subject to Council approval after review and recommendation by Planning Commission. It also outlines a process for neighborhood notification (Continued on Page 2) PREPARED BY: BUD N. LORTZ DIRECTOR OF COMMUNITY DEVELOPMENT Reviewed by: A jG Attorney Clerk 5-finance Community Development Revised: 9/ 11 /01 9: 5 8 am Reformatted: 5/23/01 PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: CONSIDER ADOPTING A RESOLUTION AMENDING THE TOWN' S ALCOHOL POLICY September 11, 2001 when there is a change of ownership for a business serving alcoholic beverages (see page 3 of Exhibit A to Attachment 1). Staff will also institute a procedure whereby a new owner of a business that serves alcoholic beverages be informed of the conditions of approval attached to the use permit for the location. CONCLUSION: Staff recommends that the Council adopt the resolution (Attachment 1) amending the Town's Alcoholic Beverage Policy. FISCAL IMPACT: None Attachments: 1. Draft Resolution with revised Alcoholic Beverage Policy attached (six pages total) 2. Study Session Minutes of July 2, 2001 (three pages) BNL:SD:mdc N:IDEVISUZANNE\Counci11Reports\PY2001-021AIcoholPolicy. wpd RESOLUTION 0106 r - / . RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS AMENDING THE TOWN'S ALCOHOLIC BEVERAGE POLICY WHEREAS, the sale of alcoholic beverages, if not regulated, can jeopardize public safety, result in an increase of calls for police services and compromise the quality of life for Town residents; and WHEREAS, The Town Council wants to balance the regulation of alcoholic beverage service and protection of residential neighborhoods with the goal of maintaining a vibrant and successful Downtown and commercial areas throughout Los Gatos; and WHEREAS, the Town Council held a study session on July 2, 2001 to discuss issues relating to service of alcoholic beverages; and WHEREAS, the Town Council has indicated a desire to review all applications for new alcohol service or change in existing service, and a need to amend the existing Alcohol Policy, THEREFORE BE IT RESOLVED: the Town Council of the TOWN OF LOS GATOS does hereby adopt the amended Alcoholic Beverage Policy attached hereto as Exhibit A. PASSED AND ADOPTED at a regular meeting of the Town Council held on the irnay '2001, by the following vote: Attachment 1 COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: /s/ Joe Pirzynski ATTEST: /s/ Marian V. Cosgrove CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA N:1DEV\RESOS\Alcohol Policy.wpd 2 MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA POLICY REGULATING THE CONSUMPTION AND SERVICE OF ALCOHOLIC BEVERAGES I. Purpose The consumption or service of alcoholic beverages, if not regulated, can jeopardize public safety, result in an increase of calls for police services and compromise the quality of life for Town residents. This policy provides parameters for alcoholic beverage service, particularly addressing late night service when alcohol related incidents are most likely to occur and when the disturbances to Town residents is least tolerable. The service of alcoholic beverages, with or without meals, past 10 PM is a discretionary privilege to be determined on a case by case basis. The following provisions are intended to balance the protection of residential neighborhoods in close proximity to commercial districts and still maintain the viability of our commercial centers in which restaurants have an essential role. Hours of operation may be regulated based on an establishment's proximity to residential neighborhoods or schools, the concentration of establishments in an area serving alcoholic beverages or for other reasons that may arise at the public hearing. The deciding body may approve a conditional use permit to serve alcoholic beverages based on the merits of the application and subject to the following requirements: II. General policy 1. The Town shall continue to strongly discourage new applications for stand alone bars or restaurants with separate bars. 2. The Town shall continue to discourage applications for entertainment establishments serving alcoholic beverages. 3. Entertainment in association with an eating or drinking establishment may be allowed if standards and a permit process are adopted. 4. Alcoholic beverage service for new conditional use permit applications or applications for modification of a conditional use permit shall not be allowed: A. After 11 PM Sunday through Thursday, except for holidays and evenings before holidays. B. After 1 AM Friday, Saturday, holidays or evenings before holidays. An existing establishment with a conditional use permit in good standing allowed to serve alcoholic beverages past the hours stated above may continue to operate under their existing hours of operation. Exhibit A Town of Los Gatos Alcoholic Beverage Policy Page 2of4 5. Any establishment serving alcoholic beverages shall be subject to the following: A. Uniformed privately provided security guards may be required in or around the premises by the Chief of Police if alcohol related problems recur that are not resolved by the licensed owner. B. At the discretion of the Chief of Police, periodic meetings will be conducted with representatives from the Police Department for on -going employee training on alcoholic beverage service to the general public. All establishments shall use an employee training manual that addresses alcoholic beverage service consistent with the standards of the Californian restaurant Association. D. All licensed operators shall have and shall actively promote a designated driver program such as complimentary non-alcoholic beverages for designated drivers. E. Taxicab telephone numbers shall be posted in a visible location. 6. The deciding body shall make the following findings prior to approving an application for conditional use permit to serve alcoholic beverages past IOPM: A. Late night service will not adversely impact adjacent residential neighborhoods. B. The applicant does not have a history of complaints and non-compliance with local ordinances or the Alcoholic Beverage Policy. C. The applicant has demonstrated a clear benefit to the community. 7. A meal is defined as a combination of food items selected from a menu (breakfast, lunch or dinner). Appetizers such as popcorn, nachos, pretzels, potato skins, relish trays, etc. (hot or cold) are not meals. 8. Alcoholic beverage service in approved outdoor seating areas may be permitted if adequate separation from public areas is provided as determined by the Town Manager. The separation shall clearly suggest that alcohol is not allowed outside the restaurant seating area. Town of Los Gatos Alcoholic Beverage Policy Page 3 of 4 M. Specific Policy 1. Restaurants: Alcoholic beverages may only be served with meals. 2. Restaurants With Separate Bars: Alcoholic beverage service is permitted in the dining area only in conjunction with meal service. Meal service shall be available until closing or 11 PM Sunday through Thursday and until 12 midnight Friday, Saturday, holidays and evenings before holidays, whichever is earlier, if late night bar service is available. Specific hours of operation for each establishment are determined upon issuance of a conditional use permit. IV. Review Process 1. Proposals for new bars or restaurants with bars and all requests for new alcohol service or a change to existing service shall be reviewed by the Planning Commission. The Commission will make a recommendation to the Town Council and the Council shall have final review authority. 2. Changes in ownership for businesses involving service of alcoholic beverages shall be reviewed by the Community Development Department. The following process will be followed: a. The Director of Community Development shall contact the new business owner to make them aware of the conditions of approval attached to the Use Permit for the location. b. One year following issuance of a business license, surrounding/impacted property owners shall be notified and any comments regarding the operation of the business shall be solicited. c. If the Director of Community Development becomes aware of any alcohol related impacts on the surrounding neighborhood, the Director shall review the operation of the business to determine whether there is a violation of the use permit. Town of Los Gatos Alcoholic Beverage Policy Page 4 of 4 d. If there are violations of the use permit that have not been voluntarily corrected by the business owner the matter will be forwarded to the Planning Commission for public hearing pursuant to Section 29.20.310 of the Zoning Ordinance. e. Pursuant to Section 29.20.315 of the Zoning Ordinance the Planning Commission may revoke or modify the conditional use permit if it finds that sufficient grounds exist. IV. Enforcement All conditional use permits issued to establishments for alcoholic beverage service on -site shall be subject to Section 29.30.310(b) of the Town Code authorizing the Town Manager to take enforcement action if it is determined that the sale of alcohol has become a nuisance to the Town's public health, safety or welfare. Enforcement of section 29.20.310(b) of the Town Code will be based on, but not limited to, the following factors: I. The number and types of calls for service at or near the establishment which that are a direct result of patrons actions; II. The number of complaints received from residents ad other citizens concerning the operation of an establishment; III. The number of arrests for alcohol, drug, disturbing the peace, fighting and public nuisance violations associated with an establishment; IV. The number and kinds of complaints received from the State Alcoholic Beverage Control office and the County Health Department; V. Violation of conditions of approval related to alcoholic beverage service. The Alcoholic Beverage Policy is not to be construed to be a right of development. The Town retains the right of review and approval (or denial) of each project based on its merits. N:1DE V1SUZANNE\CoimdiFAlcohol Policy \2001 alcohol policy.wpd DRAFT TOWN OF LOS GATOS Council Meeting CALIFORNIA Date: 7/16/01 TOWN COUNCIL/PLANNING COMMISSION Item #: JOINT STUDY SESSION AGENDA July 2, 2001/Study Session Minutes TOWN COUNCIL The Town Council/Parking Authority/Redevelopment Agency of the Town of Los Gatos met in the Town Council Chambers, at 110 East Main Street, at 5:30 p.m., Monday, July 2, 2001, in special called study session. ROLL CALL Present: Councilmembers: Randy Attaway, Sandy Decker, Steve Glickman and Mayor/Chairman Joe Pirzynski. Staff: Suzanne Davis, Debra Figone, Orry Korb, Bud Lortz and Larry Todd. VERBAL COMMUNICATIONS Ray Davis expressed concern about motions for reconsideration, an item that is on tonight' s agenda. Under the proposed changes citizens won't have the opportunity to request reconsideration of an item. This should be part of the Town Code. ALCOHOLIC BEVERAGE POLICY REVIEW Mayor Pirzynski opened the Study Session with a status report on the Town's Alcoholic Beverage Policy. Bud Lortz summarized the staff report and attachments and noted that the key components of the policy are stand alone bars, alcohol service outside the CBD and the Downtown. • Stand Alone Bars: Steve Glickman asked if the definition is inclusive of pubs with a bar. Mr Lortz clarified that a stand alone bar is a drinking establishment. Steve Glickman would like to see low key club venues with a focus on music. He would like to see more establishments with a focus on music such as jazz or folk, and would like to encourage such venues in Town. He feels that the current policy discourages this. He suggested that establishments that include music be integrated into the policies for the Downtown. Sandy Decker would like to see music added to an existing bar rather than adding a new establishment with entertainment. She prefers changing the atmosphere of an existing stand alone bar and doesn't want to link music to alcohol service. Joe Pirzynski said the current mix in the Downtown is good. What the Town is doing now makes sense. There is room for adding music to existing venues. Randy Attaway concurred. He doesn't want to encourage new bars. He suggested adding the word "strongly" to the sentence under II.1 of the Alcohol Policy. He doesn't want to see an "entertainment row". The consensus was to keep the current policy adding the word "strongly" to Section II. Number 1. The sentence will now read, "The Town shall continue to strongly discourage new applications for stand alone bars or restaurants with separate bars." • Alcohol related applications Sandy Decker would like to have the Council review use permits when there is a change in ownership to ensure TC:D 13:MM070201.STUDY Attachment 2 Town Council Minutes Redevelopment Agency Study Session that the use is not changing. July 2, 2001 Los Gatos, California Joe Pirzynski asked about the evolution from what a business was to what it is now and when it would be seen by the Council. Bud Lortz answered that when there is a violation of conditions, the goal is to abate this. A use permit is only scheduled for revocation when the Town is unable to abate the violation. Mr. Pirzynski agreed that all alcohol related applications should come to the Council. Randy Attaway would like to have all alcohol related applications come to the Council. The Council should make the final determination. Sandy Decker said that so much of alcohol service is related to land use. She doesn't want to pull the Planning Commission out of the loop. The Commission looks at details such as location, proximity to residential, business operations, etc. She suggested having the Commission review alcohol related applications and making a recommendation to the Council. Steve Glickman said it is important to need the Commission good direction and to have a well defined policy. The consensus was to have alcohol related applications reviewed by the Commission and forwarded to the Council with a recommendation. The Town Attorney provided two alternatives: (1) alcohol related application automatically go to the Council after going through the Planning Commission process; or (2) The Commission can make a recommendation to Council and if the Council agrees with the decision, no hearing will be held. If the Council has concerns a public hearing can be scheduled. Alcohol outside the Central Business District: Steve Glickman suggested looking at Los Gatos Blvd. He questioned what the Town's goal is for this area; should it be changed or should it be shut down at night. He prefers restricting businesses on Los Gatos Blvd. to beer & wine licenses. Randy Attaway supports putting life into areas such as Los Gatos Blvd. He suggested outreach through the Chamber of Commerce and other means. Desirable uses could be moved through the process faster. Joe Pirzynski believes that the Boulevard needs enhancement. He would like to encourage entertainment or restaurant uses in this area to enliven it. He suggested developing a roster of viable businesses. Sandy Decker suggested creating regions such as Los Gatos Blvd., the North 40 and the Rinconada Shopping Center area because one policy won't cover all commercial areas. Perhaps an alcohol specific plan could be developed. Police Chief Larry Todd provided information on the effect of alcohol (beer versus hard liquor). A 5 oz. glass of wine, 12 oz. beer and mixed drink with 1 % oz. of 80 proof liquor all contain the same amount of alcohol. Randy Attaway believes that behavior problems are associated with certain uses. He would like any change in use that would be an intensification to have a one year review of the CUP. Sandy Decker clarified that when a business owner is intensifying from beer & wine to a full liquor license the use permit is reviewed. Joe Pirzynski said that any type of intensification with an alcohol related use should be reviewed. Bud Lortz said that a one year review can be done for new use permits or new alcohol service, then review can be done less frequently. Staff could invoke a one year review with a change of ownership and notice neighbors. IC: D 13: MM070201. S TUDY 2 Town Council Minutes Redevelopment Agency Study Session The Council highly supported this action. July 2, 2001 Los Gatos, California Bud Lortz said that staff will return with an ordinance on entertainment uses and with a draft Alcohol Policy with revisions supported by Council. He clarified that Council action will be required on alcohol related businesses Town -wide. ADJOURNMENT The mayor adjourned the meeting at 6:45 p.m. ATTEST: Bud Lortz Deputy Town Clerk Secretary to the Planning Commission TC:D13:MM070201.STUDY 3 RESOLUTION 2001 - 106 RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS AMENDING THE TOWN'S ALCOHOLIC BEVERAGE POLICY WHEREAS, the sale of alcoholic beverages, if not regulated, can jeopardize public safety, result in an increase of calls for police services and compromise the quality of life for Town residents; and WHEREAS, The Town Council wants to balance the regulation of alcoholic beverage service and protection of residential neighborhoods with the goal of maintaining a vibrant and successful Downtown and commercial areas throughout Los Gatos; and WHEREAS, the Town Council held a study session on July 2, 2001 to discuss issues relating to service of alcoholic beverages; and WHEREAS, the Town Council has indicated a desire to review all applications for new alcohol service or change in existing service, and a need to amend the existing Alcohol Policy, THEREFORE BE IT RESOLVED: the Town Council of the TOWN OF LOS GATOS does hereby adopt the amended Alcoholic Beverage Policy attached hereto as Exhibit A. PASSED AND ADOPTED at a regular meeting of the Town Council held on the 17`' day of September, 2001, by the following vote: COUNCIL MEMBERS: AYES: Randy Attaway, Steven Blanton, Sandy Decker, Steve Glickman, Mayor Joe Pirzynski. NAYS: None ABSENT: None ABSTAIN: None SIGNED: /s/ Joe Pirzynski MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: /s/ Marian V. Cosgrove CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA 2 Town Council Minutes September 17, 2001 Redevelopment Agency Los Gatos, California SKATEPARK FEASIBILITY STUDY/CONT. Motion by Mr. Attaway, seconded by Mr. Glickman, to earmark (subject to review in October) 50% of the least cost option or approximately $125,000 from Town financial resources to a skatepark. This amount to be matching funds to what we find the community is willing to support, and that this project be accomplished in phases. Carried unanimously. Ms Figone stated for the record that staff had given their best efforts at establishing firm budget numbers. The detail in the architect's report delineates all cost assumptions anticipated. There are time escalation costs and contingencies that may have not come to light yet but staff has attempted to cover everything including maintenance for the first year. Mr. Glickman spoke for the record to thank Supervisor Don Gage, Town Manager Debra Figone, and Public Work Director Les White for their efforts and detailed commitment given to this project. ALCOHOL POLICY FOR TOWN/RESOLUTION 2001-106 (18.38) Motion by Mr. Blanton, seconded by Mrs. Decker, that Council adopt Resolution 2001-106 entitled, RESOLUTION OF THE TOWN OF LOS GATOS AMENDING THE TOWN'S ALCOHOLIC BEVERAGE POLICY. Carried unanimously. LEAGUE OF CITIES BUSINESS MEETING/RANDY ATTAWAY/VOTING DELEGATE (19A.12) Motion by Mr. Glickman, seconded by Mr. Blanton, to appoint Randy Attaway as voting delegate for National League of Cities Annual Business Meeting to be held December 8, 2001 in Atlanta, Georgia during the annual conference. Carried unanimously. TOWN COUNCIL MEETING SCHEDULE/FISCAL YEAR 2001-2002 (19B.28) Motion by Mr. Blanton, seconded by Mrs. Decker, that Council amend Fiscal Year 2001-2002 Town Council Meeting Schedule, adding October 1, 2001 Study Session to discuss and review 484 Woodland Avenue - Mobile Home Park. Carried unanimously. COUNCIL REPORTS Mr. Blanton thanked Council and staff for the concern expressed over the loss of his father-in-law. MANAGER MATTERS There was no report this evening. ADJOURNMENT Motion by Mr. Pirzynski, seconded by Mr. Blanton, to adjourn this evening's meeting at 10:50 p.m. in memory of all those people who died in New York and Washington this last week and particularly Marc Bingham and Todd Beamer, who were both Los Gatos High School graduates. Carried unanimously. ATTEST: Marian V. Cosgrove Town Clerk 7 TC:D13:MM091701