Item 12a Staff Report Review of Town Alcohol Beverage Policyf
MEETING DATE: 3/5/01
ITEM NO. / a_
COUNCIL AGENDA REPORT
DATE: March 1, 2001
TO: MAYOR AND TO COUNCIL
COUNCIL
FROM: TOWN MANAGE
SUBJECT: REVIEW OF TOWN ALCOHOL BEVERAGE POLICY
REMARKS:
The current Alcoholic Beverage Policy was adopted in 1994 (Attachment 1). This policy replaced
the Downtown Alcoholic Beverage Policy because it was determined that the consumption and
service of alcoholic beverages should be regulated on a town -wide basis. The Zoning Ordinance
does not contain a mechanism for obtaining a permit to sell alcoholic beverages for consumption on
premises (stand alone bar) but a restaurant may sell alcoholic beverages for consumption on
premises upon the issuance of a Conditional Use Permit by the Planning Commission or Town
Council.
Since 1994 very few restaurants have requested approval to serve alcoholic beverages or to expand
their existing permits from beer and wine service to full liquor. The existing policy provides
parameters for alcoholic beverage service, particularly addressing late night service when alcohol
related incidents are most likely to occur and when the disturbance to nearby residents is least
tolerable. The policy discourages new applications for stand alone bars or restaurants with separate
bars, discourages applications for entertainment establishments serving alcohol, and regulates the
closing hours of establishments which serve alcohol.
Over the last six months there have been five applications submitted to either serve beer and wine
or to expand existing beer and wine service to full liquor all within the downtown area. Two of these
applications were approved by the Planning Commission. However, when the Commission realized
that other applications were pending concerning the sale of alcohol, it decided to deny two of the
applications. The purpose of the denial was to enable the applicants to appeal the matter to the Town
(Continued on Page 2)
PREPARED BY: BUD N. LORTZ
DIRECTOR OF COMMUNITY DEVELOPMENT
Reviewed by: Or. Attorney Revised: 3/1/01 5:18 pm
Reformatted: 7/14/99
I
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: ALCOHOL BEVERAGE POLICY
March 1, 2001
Council where the issue of saturation/concentration of establishments serving alcohol, as well as
conversion from beer and wine to full liquor, could be addressed. The fifth application requesting
expansion to full liquor is scheduled for the April 25, 2001 Planning Commission meeting.
The Planning Commission and Staff are requesting policy direction concerning two issues about the
Alcoholic Beverage Policy. These issues directly relate to the two applications that have been
appealed to the Town Council. A third issue the Council may want to address is whether different
standards should apply to applications for alcoholic beverage service if the business is located
downtown as opposed to other areas of the Town. These three issues are discussed in detail below.
Saturation/Concentration
Of the 75 restaurants in the downtown area, 33 are approved to serve beer and wine and 13 are
approved to serve full liquor. There are five stand alone bars. Recently there has been an
heightened sensitivity about the number of establishments which serve alcohol in the downtown
due to the increase in applications. The Police Department has also expressed a concern about
the further saturation of the downtown area with alcohol serving restaurants since the single
greatest contributor to calls for police service and criminal behavior in the downtown is alcohol
consumption. The Police Department recognizes the legitimacy and social acceptance of alcohol
consumption and does not generally oppose its sale. However, because of the unusually high
number of ABC licenses in such a concentrated area, the Police Department does not recommend
approval of any application that would allow additional alcohol serving establishments. On the
other hand, restaurant owners have expressed concern that the economic vitality of their
restaurant is directly impacted by the inability to sell alcohol. The Town has seen a turnover of
these restaurants, but new restaurants are quickly filling the spaces vacated by previous
restaurants.
Modification to change beer and wine service to full liquor service
Restaurants that request to expand from the sale of beer and wine to full liquor do not present
a concern to the Police Department. From a public safety perspective, the Police Department
has concluded that where sobriety is concerned, there is no difference or statistical relevance
regarding the consumption of beer and wine, versus other alcoholic beverages. Consequently,
the Police Department does not oppose granting these types of applications. Council may want
the Planning Commission to consider these requests on a case by case basis, as is currently being
done, since it may be appropriate to deny an application if there has been a history of complaints
about the business in the past. It is also possible to amend the policy to prohibit future
conversions if there is a concern that conversion to full liquor service constitutes an
intensification of use and would increase traffic and congestion and impact available parking.
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: ALCOHOL BEVERAGE POLICY
March 1, 2001
Downtown Alcohol Standards versus Town -wide Standards
There may be some restrictions Council would consider establishing for the downtown area
alone. Council may want to consider placing a cap on the number of alcohol businesses
permitted in the downtown area to maintain the status quo. This may be appropriate if there is
a serious concern that the recent influx of applications has created an issue concerning
saturation/concentration of ABC licenses. Another option to maintain the status quo is to
establish a method of transferring the development rights of alcohol serving businesses. For
example, when a restaurant that serves alcohol goes out of business and converts to retail/office
that development right becomes available for another business. This would maintain the status
quo in terms of the number of restaurants that serve liquor downtown. However, in checking
planning records with respect to Conditional Use Permits, it appears that only one downtown
restaurant has converted to an retail/office use in the past ten years. As stated earlier, when
restaurants are vacated they typically reopen with another restaurant.
The Police Department would support a policy that restricted the number of ABC license holders
in the downtown area to the existing level and that would only allow a new establishment to
replace an existing one.
Attachments:
1. Alcohol Beverage Policy
Distribution:
Mahmoud Ghayoumipour, 2086 Wente Way, San Jose, CA 95125
Andrew Pavicich, Jr., Los Gatos Brewing Co., 1476 Twin Oaks Drive, Los Gatos, CA 95030
N:1DEV\CNCLRPTS\alcohol. l .wpd
RESOLUTION 1994-29
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
REGULATING THE SALE OF ALCOHOLIC BEVERAGES
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;
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.
THEREFORE, BE IT RESOLVED: the Town Council of the Town of Los Gatos
does hereby adopt the Alcoholic Beverage Policy as shown on Exhibit A.
PASSED AND ADOPTED at a regular meeting of the Town Council held on the
22nd day of February, 1994, by the following vote:
COUNCIL MEMBERS:
AYES: Steven Blanton, Linda Lubeck, Patrick O'Laughlin, Mayor Randy
Attaway
NAYS: Joanne Benjamin
ABSENT: None
ABSTAIN: None
SIGNED: /s/ Randy Attaway
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
mb09\RESO\aicohol.pol
Attachment 1
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 disturbance 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 be raised 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 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 beverage past the hours stated above, may continue to operate
under their existing hours of operation.
EXH!T A
4. 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.
c. All establishments shall use an employee training manual that addresses
alcoholic beverage service consistent with the standards of the
California 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.
The deciding body shall make the following findings prior to approving an
application for conditional use permit to serve alcoholic beverages past 10
PM:
a. Late night service will not adversely impact adjacent residential
neighborhoods;
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.
6. A meal is defined as a combination of food items selected from a menu
(breakfast, brunch, lunch, or dinner). Appetizers such as popcorn, nachos,
pretzels, potato skins, relish trays, etc. (hot or cold) are not meals.
7. 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.
III. 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. Enforcement
All conditional use permits issued to establishments for alcoholic beverage service
on -site shall be subject to Section 29.20.310(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:
1. The number and types of calls for service at or near the establishment which
are a direct result of patrons actions;
2.
The number of complaints received from residents and other citizens
concerning the operation of an establishment;
3. The number of arrests for alcohol, drug, disturbing the peace, fighting and
public nuisance violations associated with an establishment;
4. The number and kinds of complaints received from the state Alcoholic
Beverage Control office and the County Health Department;
5. Violation of conditions of approval related to alcohol beverage service.
The Alcoholic Beverage Policy is not to be construed to be a right of developments. The
Town retains the right of review and approval (or denial) of each project based on its
merits.
0b09:\misc\alc.pol
Town Council Minutes March 5, 2001
Redevelopment Agency Los Gatos, California
HEARINGS CONTINUED
BLOSSOM HILL RD 615/PLACER OAKS DRIVE/CONTINUED
Motion by Mrs. Decker, seconded by Mr. Blanton, to approve the Development Application DEV-
99-001 and the Negative Declaration ND-98-0013: making the Negative Declaration (Exhibit F of
Exhibit G of Attachment 1 with the mitigated Negative Declaration Text Clarification, Exhibit T of
Exhibit I of Attachment 1); finding that the General Plan Amendment is internally consistent with
the General Plan and its elements (noting that the change from R-1:8 and Rm:5-12 to Rm:5-12:PD
is of a small section of the property to bring it into conformance to the topography and Land Use and
Housing Elements of the remainder of the project zoning); finding that the Zone Change is
consistent with the General Plan due to the fact that the development density is far less than what the
zoning allows and achieves a balance between rental housing and an acceptable traffic impact; finding
that the project contributes to the Town's Infill Policy in this neighborhood addressing many of the
neighbors concerns and developing an avenue for a traffic calming plan for cut through traffic from
Oak Rim Way to Highland Oaks with the project's traffic mitigation fees, along with a redesign at the
project entrance on Oak View Terrace, and showing a comparable size, density and use of open space
along with excellence of design; finding demonstration of strong community benefit as required by
the Town's Traffic Policy by supplying affordable housing, realignment of the project driveway and
traffic mitigation addressing the surrounding neighborhoods' traffic issues; adopting the Mitigation
Monitoring Plan (Exhibit F of Attachment 1), addressing construction impacts on the neighborhood
including limiting impact of construction work on the neighborhood and minimizing construction
vehicles to the maximum possible on the residential streets; submitting a work plan and construction
schedule to be approved at the Architecture and Site Review; considering removal of the 3`d story
lofts at A&S; developing a five year landscape agreement providing for a lush treatment of the
freeway wall at A&S; lowering of the sound wall to 8 feet; restricting the emergency access road
to emergency vehicles only. Carried unanimously.
Motion by Mrs. Decker, seconded by Mr. Blanton, to waive the reading of the Proposed Ordinance.
Carried unanimously.
The Town Clerk read the Title of the Proposed Ordinance.
Motion by Mr. Glickman, seconded by Mrs. Decker, that Council introduce the Proposed Ordinance
entitled, ORDINANCE OF THE TOWN OF LOS GATOS AMENDING THE TOWN CODE
EFFECTING A ZONE CHANGE FROM R-1:8 AND RM:5-12 TO RM:5-12 PD FOR
PROPERTY AT 517 BLOSSOM HILL ROAD, 615 BLOSSOM HILL ROAD AND PARCELS
BORDERING PLACER OAKS DRIVE. Carried unanimously.
ALCOHOLIC BEVERAGE POLICY/TOWN WIDE APPLICATIONS (12A.38)
Mayor Pirzynski announced that this was the time and place so noted for public hearing to consider
the current Town Alcoholic Beverage Policy which was adopted in 1994.
The following people from the audience addressed this issue:
Glenn Thompson, 28 Longfellow Road, Mill Valley, noted that the present policy was working well
and does not need modification. Town should measure the impact of a new licence to be issued in the
downtown and make accommodations for the type of clientele that the business has and the history
of the way the business has been run.
TC: D 13: MM03050 1
4
Town Council Minutes March 5, 2001
Redevelopment Agency Los Gatos, California
HEARINGS CONTINUED
ALCOHOLIC BEVERAGE POLICY/CONTINUED
Council Comments:
Mr. Glickman encourages a friendly town that provides all the amenities that invite a person to sit
down and relax with a meal and a glass of wine in a pleasant atmosphere, and in outside restaurnat
seating areas as so provided.
Mr. Blanton favored wine as an eating experience with family and friends. What may be granted is
beer and wine at an established full service restaurant. Marketing conditions have changed and the
establishment needs to provide an enhanced product. The granting of new licenses must be for sit
down restaurants that agree to active oversight by the town.
Mrs. Decker believes that there should be a limited number of licences per community and that it
becomes an honor and responsibility if you acquire a licence in this town. She asked that licences fit
the established business and have regulations associated with it. She noted that the policy should be
reviewed in conformance with the community orientation of the General Plan.
Mr. Pirzynski asked that if there are any violations of this policy that enforcement take place quickly
on those establishments that are causing problems. Los Gatos is not identified as only supporting
restaurants but as having a balance of activity and businesses in the downtown. He believes that the
town has reached it saturation point and that Council is not obligated to approve any additional
alcohol licenses.
Mr. Attaway agrees that enough alcohol licenses have been issued, but also made note that some very
nice restaurants changed dramatically over the years and caused the town some serious problems since
the establishment still held a liquor license. He asked for a time to review this issue and the current
rules established by the ABC. He would also like a review of the walls used around the present
outdoor dining areas, and that any application for a liquor license in town come before Council for
consideration first.
Council Consensus to hold a one hour study session just before a regular Council meeting to discuss
the alcohol policy which has served the Town well for 7 years, but which may need some discussion
and modification due to changing market conditions and circumstances.
N. SANTA CRUZ AVE. 130-GBREWING CO./BEER & WINE PERMIT (12B.15)
Mayor Pirzynski announced that this was the time and place so noted for public hearing to consider
an appeal of the decision of the Planning Commission denying a request to modify a conditional use
permit (Los Gatos Brewing Company) for a full liquor license on property zoned C-2. Conditional
Use Permit U-00-32. Property Location: 130-G N. Santa Cruz Avenue. Property Owner: Dennis
and Kathy Varni. Applicant/Appellant: Andrew P. Pavicich.
The following people from the audience addressed this issue:
Edward Alvarez, 333 W. Santa Clara Street, #708, San Jose, representing the Pavicich family. Noted
that the restaurant is upscale and serving a quality menu. He spoke of declining beer sales, and that
the market place is changing and the clientele is asking for other beverages with their meals.
Joel Newman, 15740 Cherry Blossom Lane, spoke in favor of a full licence bar to support this
restaurant.
Steve Rubin, 2116 Vizcaya Way, Campbell, supported the full licence bar at this restaurant.
Dave Flick, 130 Stacia Street, supported the full licence bar at this location.
No one else from the audience addressed this issue.
Motion by Mr. Glickman, seconded by Mr. Decker, to close the public hearing. Carried
unanimously.
IC: DI 3:MM030501
5
State of California )epartment of Alcoholic Beverage Control
APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE(s)
ABC 211 (6/99)
TO: Department of Alcoholic Beverage Control
100 Paseo de San Antonio
Room 119
San Jose, CA 95113
(408)277-1200
DISTRICT SERVING LOCATION:
First Owner:
Name of Business:
Location of Business:
County:
Is premise inside city limits?
Mailing Address:
(If different from
premises address)
SAN JOSE
ROJAS INES
LA ESQUINA
File Number: 373245
Receipt Number: 1311327
Geographical Code: 4307
Copies Mailed Date: January 08, 2001
551 N SANTA CRUZ AVE
LOS GATOS, CA 95030
SANTA CLARA
Yes
Type of license(s): 41
Transferor's license/name: / Dropping Partner: Yes No
License Type Transaction
Type Fee Type Master Duo Date Fee
41 ON -SALE BEER AND ORIGINAL FEES
41 ON -SALE BEER AND ANNUAL FEE
41 ON -SALE BEER AND STATE FINGERPRINTS
NA
NA
NA
Y 0 01/05/01
Y 0 01/05/01
N 1 01/05/01
Total
$300.00
$205.00
$39.00
$544.00
Have ys)u ever been convicted of a felony? N o
Have you ever violated any provisions of the Alcoholic Beverage Control Act, or regulations of the
Department pertaining to the Act? No
Explain any "Yes" answer to the above questions on an attachment which shall be deemed part of this application.
Applicant agrees (a) that any manager employed in an on -sale licensed premise will have all the
qualifications of a licensee, and (b) that he will not violate or cause or permit to be violated any of the
provisions of the Alcoholic Beverage Control Act.
STATE OF CALIFORNIA County of SANTA CLARA Date: January 5, 2001
Under penalty of perjury. each person whose signature appears below, certifies and says: (1) He is an applicant, or one of the applicants, or an
executive officer of the applicant corporation. named in the foregoing application. duly authorized to make this application on its behalf; (2) that
he has read the foregoing and knows the contents thereof and that each of the above statements therein made are true: (3) that no person other
than the applicant or applicants has any direct or indirect interest in the applicant or applicant's business to be conducted under the license(s) for
which this application is made; (4) that the transfer application or proposed transfer is not made to satisfy the payment of a loan or to fulfill an
agreement entered into more than ninety (90) days preceding the day on which the transfer application is filed with the Department or to gain or
establish a preference to or for any creditor or transferor or to defraud or injure any creditor of transferor: (5) that the transfer application may
be withdrawn by either the applicant or the licensee with no resulting liability to the Department.
Applicant Name(s) Applican
ROJAS INES
ignature(s)
5Pal