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Item 37 Staff Report Consider Planning Commission Recommendation Regarding Alcoholic Beverage Policy in the DowntownCOUNCIL AGENDA DATE: 8/2/93 ITEM NO.(3_7 TOWN OF LOS GATOS COUNCIL AGENDA REPORT DATE: July 28, 1993 TO: MAYOR AND TOWN COUNCI FROM: TOWN MANAGER SUBJECT: CONSIDER PLANNING COMMISSION RECOMMENDATION REGARDING ALCOHOLIC BEVERAGE POLICY IN THE DOWNTOWN RECOMMENDATION: Consider the Planning Commission's recommendation to extend the hours in which alcoholic beverages may be served beginning at 10 AM rather than 11 AM. BACKGROUND: On June 23, 1993 the Planning Commission considered an application to extend the hours of operation for the Los Gatos Brewing Company. The Commission's action was to deny the nighttime extension of hours while approving a morning hour extension so that champagne could be served during weekend brunch. In its motion, the Commission requested that the Council review the Alcoholic Beverage Policy to consider amending the hours in which alcoholic beverages may be served. The Commission made its recommendation citing that the new Council has yet to review this policy in light of recommendations stated in the Commercial Plan Report. (Continued, Page 2) PREPARED BY: LEE E. BOWMA PLANNING DIRECTOR LARRY J. TODD CHIEF OF POLICE LEB:kh:mb 7/28/93 5:01 pm pcmin07\cnclrpts\Alcohol.pol File 8 ATTACHMENTS: 1. Alcoholic Beverage Policy for the Downtown 2. Motion made by Planning Commission at June 23, 1993 meeting Reviewed by: ' Attorney Clerk Finance Treasurer COUNCIL ACTION/ACTION DIRECTED TO: PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: ALCOHOLIC BEVERAGE POLICY IN DOWNTOWN July 28, 1993 DISCUSSION: In May of 1991 the Council accepted the report of the Commercial Plan Committee. The Committee identified several implementation measures to be applied in the Central Business District. Some of these policies are identified below with a priority ranking of either high, medium or low as determined by the Town Council. Develop policies and design guidelines to encourage the location of quality restaurants in this area. (high priority) Develop criteria and guidelines to allow "on -sale general" alcoholic beverage licenses in conjunction with full service dinner restaurants. (high priority) Develop policies and guidelines for the preservation and upgrading of theatre resources and the development of other compatible nighttime entertainment businesses. (medium priority) REMARKS: The present Alcoholic Beverage Policy is attached. The Los Gatos Brewing Company is currently allowed to operate until 12 midnight on the weekends under their Conditional Use Permit. In May 1991, the Council approved the Conditional Use Permit with the provision that after nine months from the date the restaurant started operation, the Planning Commission shall review the Conditional Use Permit. The Planning Commission's consideration of the Brewing Company's application to extend its hours coincided with the review of the CUP. While the Commission found the Brewing Company a good neighbor, it denied the request for nighttime extension of hours based on current policy. While the Council has the prerogative to approve applications that conflict with its policies, this practice raises concerns with the next applicant that would like to be afforded the same privilege. Whether the Council finds the policy should be amended or remain in its present form, the policy should apply to all applications for alcoholic beverage service within the downtown. Police Department Concerns: There are five (5) areas of concern which the Police Department staff believe should be addressed in review of the Town's Alcoholic Beverage Policy. 1. Full Service Restaurant: The Police Department strongly recommends that the service of alcoholic beverages only be allowed in conjunction with meals in any restaurants that do not already have existing bars and/or a Conditional Use Permit (C.U.P.) allowing the service of alcoholic beverages without meals, or in any restaurants which may apply for a C.U.P. in the future. A meal should be defined as a combination of food items selected from a menu which would constitute a normally accepted "meal" (breakfast, brunch, lunch, or dinner). Appetizers such as popcorn, nachos, pretzels, potato skins, relish trays, etc. (served hot or cold) should not be considered a meal. 2. Distilled Spirits: The Department does not object to the service of distilled spirits. There is no difference in the amount of alcohol served in a drink prepared with distilled spirits versus a glass of beer or wine. The key issue is that the consumption of alcoholic beverage only be allowed with a meal as articulated above. 3. Expanded Hours of Operation: The Department does not object to expanded hours of operation. As the Council has done in the past, consideration should be given to the impact the operation has on the surrounding area, particularly residents. As long as alcohol service is "legitimately" in conjunction with meals, expanded hours do not, in and of themselves, present a concern to the Police Department. PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: ALCOHOLIC BEVERAGE POLICY IN DOWNTOWN July 28, 1993 4. Outdoor Service: A growing number of applications have been received by the Town for outdoor food and alcohol service. State law and local ordinance forbid the consumption of alcoholic beverages in public places except under specific conditions. Most cities forbid the consumption of alcohol in any public places except licensed bars and restaurants. The Town of Los Gatos allows the consumption of beer and wine in certain public parks in conjunction with a meal. The Police Department does not oppose the service of alcohol in outdoor seating areas of restaurants as long as there is an adequate separation of the area from adjacent public areas. This should include a design criteria which inhibits the ability to pass alcohol to non -restaurant patrons, regardless of age, and which creates a physical image that clearly suggests that alcohol is not allowed outside the restaurant area. This has been done successfully at several existing restaurants with outdoor seating and the same policy should be maintained with any future applications for outdoor seating. 5. Entertainment: The Town's existing policy of not allowing entertainment at restaurants should be maintained. FISCAL IMPACT: None POLICY CONCERNING THE SALE OF ALCOHOLIC BEVERAGES IN DOWNTOWN LOS GATOS The deciding body may approve a Conditional Use Permit for a restaurant, including the sale of beer and wine with meals, in downtown, based on the merits of the project if the following minimum requirements are met: 1. Beer and wine may only be served with meals on the premises. 2. Maximum hours of operation shall be from 11 A.M. to 11 P.M. seven days a week. 3. No entertainment uses shall be allowed for the restaurant. 4. The Conditional Use Permit shall be subject to annual review by the Town Police Department. If it is determined that the sale of alcohol is a nuisance, the permit shall be subject to reevaluation by the Planning Commission. The Town shall continue to discourage applications for the sale of hard liquor with meals and for new bar establishments in conjunction with or separate from a restaurant use. In addition, the Town shall discourage applications for entertainment establishments which serve any type of alcoholic beverages. The aforementioned policy statement is not to be construed to be a right of development. The Town specifically retains the right of review and approval (or denial) of each project based on its merits. C31 \MISC\ALCOPOL.CLN A f ACHMEN PLANNING CO ISSION MINUTES --17 June 23, 1993 ROLL CALL VOTE t his es blishment. It seems to me that if Los Gatos wants to encourage this type of usiness downtown and get the revenue that it produces and the clientele it encourages, Ilowing it .. remain open another hour is not a bad thing, omm. Rudol think Commiss hat the Town Co pplication, and ac ddition of an extra h n Los Gatos. I don't t ould ask the Police to I am also in opposition to the motion for pretty much the same reasons. ner Allmand already expressed them. I would be happier to recommend ncil look at this as a possible policy change and then to continue the on it as soon as we got more specific direction. I don't think that the r is going to materially change the social interaction of the evenings ink it will result in an awful lot of more unfortunate incidents. We nduct an annual review. Ilmand: I have never seen isturbance. Aside from the aven't heard anything from the r heard a loud person when I've been there late, or seen a sturbing the peace calls that the one person mentioned, I olice Department or anyone else. udolph: The motion on the floor to deny the application. otion passes 4-2 on roll call vote. YES: Commissioners Chase, Grimes, M. gan, and Roberts OES: Commissioners Allmand and Rudol BSTENTIONS: None BSENT: Commissioner Abkin owman gave appeal rights. own Attorney Anderson: May I also ask for an additio .I motion from the Commission as the policy issue. If the Commission wants to consid- it, I might recommend that the ommission request the Council to consider this appli -tion or the Council consider mending the policy to allow the 10 a.m. opening. Curr- tly, the Council policy as I nderstand it, is that you can not serve liquor before 11 a.m. hase: It's only with meals, right? nderson: Right. The approval proposed by the Commission is to allo liquor to be served 10 a.m. as long it was served with meals. organ: It's to serve alcohol but the bar itself won't open until 11 a.m. nderson: Liquor would be served with meals from 10 a.m. to 11 a.m. whic is an hour rlier than the current Council policy allows. What I would ask from the Com ission is ther a request to the Council to consider amending the entire policy or consider 10 a.m. pening policy so long as it's served with meals as to this application. MOTION Comm. Morgan moves, seconded by Comm. Rudolph, to ask the Council to consider amending the policy for the morning hours of 10 a.m. opening, serving liquor with meals, rather than 11 a.m. In addition, I would ask that the Council consider this whole policy. I think it's time to do that. Not that I'm necessarily in favor of making it more lenient, but I think it's time to make a policy statement. I know Mrs. Lubeck, and I believe Mr. Blanton, served on the business committee that recommended a less restrictive policy. I think it's time for the new Council to make its policy clear for our sake and the sake of the applicants, too. ATTACHMENT 2 August 2, 1993 Los Gatos, California PROJECT 480SLGWD/LOS GATOS BOULEVARD WIDENING/DAVID POWERS & ASSOC ENVIRONMENTAL CONSULTANT SERVICES/RESOLUTION 1993-123 (36.35) Motion by Mrs. Lubeck, seconded by Mr. Attaway, that Council make findings required pursuant to Section 2.50.130 of the Town Code that a competitive bidding process for environmental consultant services for the undergrounding of utilities and widening of Los Gatos Boulevard can be dispensed with for the following reasons: a. The firm of David J. Powers and Associates is already under contract with the Santa Clara County Traffic Authority to perform consulting environmental services for the completion of Highway 85, of which the completion of this project is a mitigation measure. b. The widening of Los Gatos Boulevard is required before either the Bascom Avenue/Los Gatos Boulevard or Winchester Blvd. interchanges with Highway 85 can be opened to public use. c. A delay in awarding this agreement in order to go through a competitive process would delay the completion of the construction projects until after the two interchanges are scheduled to be completed and Highway 85 opened. d. A delay in opening the two interchanges would impose severe environmental and traffic congestion impacts on other neighboring streets and residential neighborhoods as vehicles search for alternative routes to access to and from the highway. e. This environmental consultant firm is uniquely qualified to do this work by nature of its experience on other highway projects and based on their previous work project are able to provide a quick turnaround on the environmental documents. The three firms currently on the Town's list to perform these functions have no experience with the Town on projects of this complexity. f. The price for the work to be completed has been negotiated based on the Town's experience in completing other projects and based on the complexity of meeting the air quality analysis and reporting standards, and has been found to be advantageous to the Town. AND that Council adopt Resolution 1993-123 entitled, RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN MANAGER TO ENTER INTO AN AGREEMENT WITH DAVID J. POWERS & ASSOCIATES. INC. TO PROVIDE ENVIRONMENTAL CONSULTING SERVICES FOR THE UNDERGROUNDING OF UTILITIES AND THE WIDENING OF LOS GATOS BOULEVARD. Carried by a vote of 4 ayes. Mr. O'Laughlin absent. ALCOHOLIC BEVERAGE POLICY FOR THE DOWNTOWN (37.42) Motion by Mrs. Lubeck, seconded by Mr. Attaway, to continue this item to November 1, 1993. Carried by a vote of 4 ayes. Mr. O'Laughlin absent. PARK COMMISSION/NEW TERM OF OFFICE/STUDENT PARK COMMISSIONER (38.20) The Town Clerk read the Title of the Draft Ordinance. Motion by Mrs. Lubeck, seconded by Mr. Attaway, to waive the reading of the Draft Ordinance. Carried by a vote of 4 ayes. Mr. O'Laughlin absent. TC: D5: MM080293 10