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12 Staff Report - 368 Village LaneDATE: TO: FROM: COUNCIL AGENDA REPORT November 22,2005 MAYOR AND TOWN COUNCIL DEBRA J.FIGONE,TOWN MANAGER :MEETING DATE:12/5/05 ITEM NO.1 d-- SUBJECT:CONSIDER A REQUEST TO MODIFY AN EXISTING CONDITIONAL USE PERMIT TO EXPAND FROM BEER AND WINE TO FULL LIQUOR SERVICE SERVICE (CAFE MARCELLA)ON PROPERTY ZONED C-2. CONDITIONAL USE PERMIT APPLICATION U-06-3.PROPERTY LOCATION:368 VILLAGE LANE (APN 529-04-053).PROPERTY OWNER:THE WALTER B.FRANCK SUPPORT TRUST APPLICANT: CAFE MARCELLA,INC. RECOMMENDATION: 1.Accept report in the form of verbatim meeting minutes from the Planning Commission regarding a modification of a Conditional Use Permit (Attachment 4). 2.Hold the public hearing and receive public testimony. 3.Close the public hearing. 4.Approve the application.Ifthe application is approved,make the required findings (Attachment 1)and approve the application subject to the proposed conditions (Attachment 3)(Motion Required). 5.Refer to the Town Attorney for preparation of the appropriate resolution. BACKGROUND: On July 5,1977,the Town Council approved Conditional Use Permit Application U-77-12 for a restaurant which was allowed to serve beer and wine with meals at 368 Village Lane.On May 27, 1981,the Planning Commission approved Conditional Use Permit Application U-8I:...9'to expand the floor area of the existing restaurant.Full liquor service was not requested at that time (Exhibit C of Attachment 5).In the fall of 1991,Cafe Marcella opened at this location. (Continued on Page 2) ~LW- PREPARED BY:~UD-N.LORfi~ DIRECTOR OF COMMUNITY DEVELOPMENT Reviewed by:NAssistant Town Manager (9VTown Attorney __Clerk'---------'Finance ~Community Development Revised:11/22/05 5:12 pm Reformatted:5/30102 Page 2 MAYORANDTOWNCOUNC~ SUBJECT:368 V~LAGE LANE (CAFE MARCELLA) December 5,2005 DISCUSSION: 1.Project Summary The applicant is requesting approval to modify the existing Conditional Use Permit to allow an expansion from beer and wine service to full liquor service in conjunction with meals.The applicant states that this request is necessary due to competition from other local restaurants that have obtained approval for full liquor service (Exhibit E of Attachment 5).All other existing operations,including hours of operation and seating capacity,will remain unchanged.If the Council approves this request,service of beer,wine,and liquor at the existing restaurant, including the existing bar,will only be permitted with meals (Conditions #5 and 6 of Attachment 3). 2.Planning Commission: The Planning Commission considered this matter on October 26,2005.A copy of the verbatim Planning Commission minutes are included as Attachment 4.Pursuant to the Town's Alcoholic Beverage Policy (Attachment 7),the Commission forwarded the matter to Town Council and unanimously recommended that the Council approve the application.The Commission supported the request because they were able to make the required findings for the approval of a Conditional Use Permit (Attachment 1)and they determined that the request is consistent with the Town's Alcohol Policy (Attachment 7). Additionally,the Commission requested that the Council consider modifying the existing Alcohol Policy (Attachment 7)to streamline the Conditional Use Permit modification process for converting from beer and wine service to full liquor service by allowing the Planning Commission toapprove applications of this nature.The Commission suggested that the Council consider this request for existing restaurants,of a certain quality and!or which contain an existing separate bar,which are currently permitted to serve beer and wine.This issue is separate from theproposed application.Council may offer direction to staff regarding this concept at this time or may direct staff to bring this concept back to Council as a separate report. CONCLUSION: Staff has reviewed this proposal and believes that this is a reasonable request given that the existing business does not have a history of complaints and is in good standing with the Police Department. Additionally,staff and the Commission have determined that this request for full liquor service complies with the Town's Alcohol Policy and that the approval ofthis request will not create any additional impacts because the existing restaurant will continue to operate in the same manner it has for the last 14 years. Additionally,if the Council believes that the Commission's request for a modification of the Town's Alcohol Policy should be considered then the Council should provide direction at this time or direct staff to agendize this matter on a future agenda for further consideration. Page 3 MAYOR AND TOWN COUNCa SUBJECT:368 VaLAGE LANE (CAFE MARCELLA) December 5,2005 ENVIRONMENTAL ASSESSMENT: As required by Section 15301 of the State Environmental Guidelines as adopted by the Town that this project is Categorically Exempt. FISCAL IMPACT:None Attachments: 1.Required findings from the Staff Report for the Planning Commission meeting of October 26, 2005. 2.Existing Conditions of Approval. 3.Recommended Conditions of Approval. 4.Verbatim Planning Commission minutes for the meeting of October 26,2005. 5.Report to the Planning Commission dated October 19,2005 for the meeting of October 26, 2005. 6.Desk Item to the report to the Planning Commission dated October 26,2005 for the meeting of October 26,2005. 7.Alcoholic Beverage Policy Distribution: The Walter B Franck Support Trust, 19050 Skyline Blvd.,Los Gatos,CA 95033 Cafe Marcella,hIc.,368 Village Ln.,Los Gatos,CA 95030 BNL:1P:mdc N:\DEV\CNCLRPTS\2005\368Village.wpd REQUIRED FINDINGS FOR 368 Village Lane Conditional Use Permit U-06-003 Requesting approval to modify an existing Conditional Use Permit Application to expand from beer and wine to full liquor service (Cafe Marcella)on property zoned C-2.APN 529-04-053. PROPERTY OWNER:The Walter B.Franck Support Trust APPLICANT:Cafe Marcella,Inc •As required by Section 29.20.190 of the Town Code for granting a Conditional Use Permit. The deciding body,on the basis of the evidence submitted at the hearing,may grant a conditional use permit when specifically authorized by the provisions of the Town Code if it finds that: (l)The proposed uses of the property are essential or desirable to the public convenience or welfare;and (2)The proposed uses will not impair the integrity and character ofthe zone;and (3)The proposed uses would not be detrimental to public health,safety or general welfare;and (4)The proposed uses of the property are in harmony with the various elements or objectives ofthe General Plan and the purposes of the Town Code. •That the work proposed is consistent with the Redevelopment Plan for the Central Los Gatos Redevelopment Project Area (Section IV.B). •As required by Section 15301 of the State Environmental Guidelines as adopted by the Town that this project is Categorically Exempt. N:\DEV\FINDINGS\368Village.wpd Attachment 1 \ I Planning Department 354-6872 CONDITIONAL USE PERMIT U-94-"/3' On February 22,1994the Los Gatos Town Council adopted the Alcoholic BeveragePolicy and an ordinance requiring all restaurants and bars to be in compliance with certain provisions of the Alcoholic Beverage Policy.In addition to the existing conditions,the conditions in bold become effective on February 22,1995. This permit issued to Cafe Marcella at 368 Village Lane allows operation of your establishment subject to the following condtions: 1.So long as this establishment serves alcoholic beverages it 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 ,vith representatives from the Police Department for on- going employee training on alcoholic beverage service to the general public.. c.This establishment shall use an employee training manual that addresses alcoholic beverage service consistent with the standards of the California Restaurant Association. d.The licensed operator 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. 2.The number of seats shall not exceed 96 ... 3.The hours of operation shall not exceed 11:30 AM to 2:30 PM and 5;30 PM to io:OO PM. 4.Beer and wine is permitted with meals: Attachment 2 RECOMMENDED CONDITIONS OF APPROVAL FOR: 368 Village Lane Conditional Use Permit U-06-003 Requesting approval to modify an existing Conditional Use Permit Application to expand from beer and wine to full liquor service (Cafe Marcella)on property zoned C-2.APN 529-04-053. PROPERTY OWNER:The Walter B.Franck Support Trust APPLICANT:Cafe Marcella,Inc TO THE SATISFACTION OF THE PLANNING DIRECTOR: (Planning Section) 1.APPROVAL:This application shall be completed in accordance with all of the conditions of approval listed below and in substantial compliance with the plans approved and noted as Exhibit F in the report to the Planning Commission.Any changes or modifications made to the approved plans shall be approved by the Director of Community Development or the Planning Commission,depending on the scope of the changes. 2.LAPSE FOR DISCONTINUANCE:If the activity for which the Conditional Use Permit has been granted is discontinued for a period of one (1)year the approval lapses. 3.NUMBER OF SEATS:The maximum number of seats for the restaurant shall not exceed 96. 4.HOURS OF OPERATION:Maximum hours of operation for the restaurant shall be 11 :30 a.m. to 2:30 p.m.and 5:30 p.m.to 10:00 p.m.seven days a week. 5.ALCOHOL SERVICE:The service ofbeer,wine,and liquor for the restaurantis permitted only with meals.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. 6.EXISTING BAR:The service ofbeer,wine,and liquor at the existing bar is permitted only with meals.A meal is defmed 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.LIVE ENTERTAINMENT:No live entertainment shall be provided unless the applicant receives future approval oflive entertainment. 8.TAKE OUT SERVICE:There shall be no dedicated walk up counter. TO THE SATISFACTION OF THE CHIEF OF POLICE: 9.UNIFORMED SECURITY: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. 10.CONSULTATION AND TRAINING:At the discretion ofthe ChiefofPolice,periodic meetings will be conducted with representatives from the Police Department for on-going employee training on alcoholic beverage service to the general public. 11.TRAINING MANUAL:The restaurant operator shall use an employee training manual that addresses alcoholic beverage service consistent with the standards ofthe California Restaurant Association. 12.DESIGNATED DRIVER PROGRAM:The restaurant operator shall actively promote a designated driver program such as complimentary non-alcoholic beverages for designated drivers. Attachment 3 368 Village Lane /U-06-003 October/26,2005 13.POSTING OF TAXICAB TELEPHONE NUMBERS:Taxicab telephone numbers shall be posted in a visible location. TO THE SATISFACTION OF THE DIRECTOR OF PARKS AND PUBLIC WORKS: (Engineering Division) 14.INDEMNITY AGREEMENT.An indemnity agreement releasing the Town from any liability associated with the trash enclosure,and stating that the right to maintain a trash enclosure on Town property may be revoked at any time shall be signed prior to construction. 15.GENERAL.All public improvements shall be made according to the latest adopted Town Standard Drawings and the Town Standard Specifications.All work shall conform to the applicable Town ordinances.The adjacent public right-of-way shall be kept clear of all job related dirt and debris at the end of the day.Dirt and debris shall not be washed into storm .drainage facilities.The storing of goods and materials on the sidewalk and/or the street will not be allowed unless a special permit is issued.The developer's representative in charge shall be at the job site during all working hours.Failure to maintain the public right-of-way according to this condition may result in the Town performing the required maintenance at the developer's expense._ 16.ENCROACHMENT PERMIT.All work in the public right-of-way will require a Construction Encroachment Permit.All work over $5,000 will require construction security. 17.PUBLIC WORKS INSPECTIONS.The developer or his representative shall notify the Engineering Inspector at least twenty-four (24)hours before starting any work pertaining to on- site drainage facilities,grading or paving,and all work in the Town's right-of-way.Failure to do so will result in rejection of work that went on without inspection. 18.RESTORATION OF PUBLIC IMPROVEMENTS.The developer shall repair or replace all existing improvements not·designated for removal that are damaged-or removed because of developer's operations.Improvements such as,but not limited to:curbs,gutters,sidewalks, driveways,signs,pavements,raised pavement markers,thermoplastic pavement markings,etc. shall be repaired and replaced to a condition equal to or better than the original condition. Existing improvement to be repaired or replaced shall be at the direction of the Engineering Construction Inspector,and shall comply with all Title 24 Disabled Access provisions. Developer shall request a walk-through with the Engineering Construction Inspector before the start of construction to verify existing conditions. 19.CONSTRUCTION NOISE.Between the hours of8:00 a.m.to 8:00 p.m.,weekdays and 9:00 a.m.to 7:00 p.m.weekends and holidays,construction,alteration or repair activities shall be allowed.No individual piece of equipment shall produce a noise level exceeding eighty-five (85)dBA at twenty-five (25)feet.Ifthe device is located within a structure on the property,the measurement shall be made at distances as close to twenty-five (25)feet from the device as possible.The noise level at any point outside of the property plane shall not exceed eighty-five (85)dBA. N :\DEV\CONDITNS\2005\3 68Village.wpd 1 5 Los Gatos Planning commissioners: A P PEA RAN C E S: Michael Burke,Chair John Bourgeois Michael Kane Phil Micciche Tom O'Donnell Lee Quintana Joanne Talesfore 4 5 6 PRO C E E DIN G S: CHAIR BURKE:Has the Commission read the Desk Item on Item #3?I'll call us back to session here.Would 7 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Assistant Director of community Development: Town Attorney: Transcribed by: Randy Tsuda Orry Korb Vicki L.Blandin 5500 Van Fleet Avenue Richmond CA 94804 (510)526-6049 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 the applicant or the representative from 368 Village Lane, Conditional Use Permit U-06-003 come up?You have five minutes,sir. ALAIN STABLER:Good evening.My name is"Alain Stabler.I am the owner of Cafe Marcella and we are hoping to get full liquor license.The reason why is when we opened 15 years ago the trend was more toward wine than liquor and we never really asked for any liquor license at that point.For the last ten years now the liquor license is a must.The liquor industry lost so much money against the wine industry that lately they've started marketing their products towards cocktails and gaining a lot of ground over the wine.So now to appear at the restaurant it's a must,it's a need to have a liquor license that includes alcohol. CHAIR BURKE:If that's it,I'll open for questions,or do you have any other statement? LOS GATOS PLANNING COMMISSION 10/26/2005 Item #3,368 Village Lane 1 LOS GATOS PLANNING COMMISSION 10/26/2005 Item #3,368 Village Lane 2 1 restaurant that has a bar,but we serve food at the bar.We used to have a clientele that would come and dine at the bar 1 4 ALAIN STABLER:Well,we are losing our base customers.We are losing a lot of customers due to not having the liquor license.Our revenues are down.Our business is not doing as well as it used to.Most of the 4 who doesn't come anymore.We used to be busy at the bar of course,but the wine was always served with meals.So it's not a bar that you're going to have a cocktail in any sense new restaurants in Los Gatos have a liquor license.I would say just a few:(inaudible),Willow Street,the Brewing 6 7 of the way;it's a restaurant. COMMISSIONER BOURGEOIS:So you're okay with that Company recently got their liquor license,and I'm just condition? wondering if we could get our liquor license like anybody ALAIN STABLER:Yes. 10 11 else. CHAIR BURKE:Are you ready to take some 10 11 COMMISSIONER BOURGEOIS:Okay. CHAIR BURKE:I'd like to clarify a question with Staff,and I know I've asked this for other applications. 16 the conditions of approval? 15 13 12 When they say alcohol only with meals,does that mean the person has to buy food in order to buy a drink,or they have to be serving food to be serving alcohol? RANDY TSUDA:It means that you need to be serving 16 food during all bar hours,number one.It also means that if 14 COMMISSIONER BOURGEOIS:Thank you.Have you read CHAIR BURKE:Okay,Mr.Bourgeois. ALAIN STABLER:Sure. questions?12 15 13 14 17 18 ALAIN STABLER:Yes. COMMISSIONER BOURGEOIS:Because in your letter of 17 you're coming in for a drink,the intent is that you are a 18 patron that will be getting a table and purchasing a meal. 19 20 21 22 23 24 25 justification you state,"As a result over the last few years we've watched our bar business erode from a packed bar from opening to closing to only a handful of guests who are waiting for their table."Yet condition #6 says that it's only going to be limited to with meals.So are you okay with that condition and you understand that condition? ALAIN STABLER:Yes.Our manager wrote the letter and he didn't quite understand the business.It's a 19 20 21 22 23 24 25 The intent is to keep it from becoming a destination where it's just a bar business and not a place you go for a cocktail or a drink prior to being seated. CHAIR BURKE:Okay.Commissioner Talesfore. COMMISSIONER TALESFORE:Thank you.I consider you a regionally famous restaurant,so why do people come to your restaurant? LOS GATOS PLANNING COMMISSION 10/26/2005 Item #3,368 Village Lane 3 LOS GATOS PLANNING COMMISSION 10/26/2005 Item #3,368 Village Lane 4 1 ALAIN STABLER:well we've been established for 15 1 reflect the restaurant,because we've been very reasonable 2 years now,and we have a very solid based clientele,and now that we are seeing that solid based clientele kind of 4 disappear,we are getting scared;because the trend is moving toward liquor:the martinis,the cosmopolitans and 2 for like 15 years. COMMISSIONER TALESFORE:So you don't have an idea 4 what that could be? ALAIN STABLER:What,the price of the drinks? things like this.And now we have people saying,"I would like to come to your place,but you don't have a bar.You don't have cocktails to start with,so we're going to go somewhere else." 6 7 COMMISSIONER TALESFORE:Right. ALAIN STABLER:Well about the same as the price of the wine. COMMISSIONER TALESFORE:I'm just trying to figure 10 COMMISSIONER TALESFORE:You have wonderful wine 11 12 13 14 15 there,and I understand that alcohol is a great revenue for restaurants,but I have to ask you.You sell wine sometimes by the glass between I'm going to guess,eight and ten dollars? ALAIN STABLER:Mmm-hmm (Yes). COMMISSIONER TALESFORE:Would you be having 10 11 12 13 14 15 out how much more money you could generate selling liquor than you do selling wine. ALAIN STABLER:The cost of liquor is less than the cost of wine,so if I sell at the same price,I will generate more revenue. COMMISSIONER TALESFORE:All right. CHAIR BURKE:I assume it's also an issue though 16 martinis,or liquor that would make a martini,is that what 17 you're thinking? 16 17 that people want to go to a restaurant that has a full service bar as opposed to one that only serves wine and 18 ALAIN STABLER:Well no.I would love to keep on 18 beer? 19 selling wine and do business as usual,but I cannot anymore. clarify the standard,the way it's worded in the set of ALAIN STABLER:Exactly. CHAIR BURKE:And that's the real issue,not the profit margin. ALAIN STABLER:Yes,that's the real issue. CHAIR BURKE:Commissioner Talesfore. 20 21 22 23 24 25 COMMISSIONER TALESFORE:But what would you be charging for a martini?I want to see what the cost difference is. ALAIN STABLER:What we would like to do is to start with a very reasonable price as a drink,just to 19 20 21 22 23 24 25 COMMISSIONER TALESFORE:Of Staff.So just to LOS GATOS PLANNING COMMISSION 10/26/2005 Item #3,368 Village Lane 5 LOS GATOS PLANNING COMMISSION 10/26/2005 Item #3,368 Village Lane 6 1 conditions,I read that to mean that liquor would only be 1 CHAIR BURKE:Commissioner Kane,followed by 2 served if you were sitting at a table.Now that's not what 2 Commissioner Quintana. you said,is that correct?COMMISSIONER KANE:From a practical standpoint, 5 4 5 RANDY TSUDA:Right.Well,this is what you can do is that you have several different options.That if you order a drink you need to order a meal at the bar.You can 4 Mr.Tsuda,it seems very difficult to enforce.Why have it in there if we can't enforce it?I mean currently it's a destination bar for wine.You can have a glass of wine at order a drink with the intent of then subsequently being the bar,and many people do.I've been there.I was very seated at a table,or alcohol can be served when you're confused by the language.We have a destination glass of sitting down at your table.The intent is to keep these bar wine bar;not everybody goes in there to eat.Now we're 10 11 order a meal at the bar. going to make it you can only have wine or liquor if you It's a difficult one to enforce.Do we really want to have language that may be winked at repeatedly and that 12 COMMISSIONER TALESFORE:And I would imagine that destination unto itself. there'S also a code as to how many people could actually be operations that are part of a restaurant from becoming a 12 11 10 in the restaurant at anyone time.13 14 RANDY TSUDA:Right,that's regulated by the fire 13 14 we can't enforce,or can we just take out that final sentence in Item #6,"Service of beer,wine,or liquor 15 code. 15 without meals at the existing bar is not permitted at this to have this become just a standup bar,is that how you 16 17 COMMISSIONER TALESFORE:And so we're trying not 16 17 location?"The intent of the Town's liquor policy seems to be embodied in the first sentence.The last sentence seems 18 19 would call it,where you can just come in and hang out between the tables and the bar? 18 19 quite unenforceable and I don't think we need it.Your point about alcohol being served while only meals are being served 20 is embodied in the first sentence.The last sentence seems20 21 RANDY TSUDA:Correct,and that's what's specified in the Town's alcohol policy.That's where this whole 21 rather specific that you can't go to the bar and have a leave the last sentence out. 22 23 24 requirement for meals being served during the hours yOU're serving alcohol fundamentally comes from is the Town's alcohol policy. 22 23 24 drink. RANDY TSUDA:I have no problem if you wanted to 25 COMMISSIONER TALESFORE:Thank you.25 LOS GATOS PLANNING COMMISSION 10/26/2005 Item #3,368 Village Lane 7 LOS GATOS PLANNING COMMISSION 10/26/2005 Item #3,368 Village Lane 8 COMMISSIONER KANE:I couldn't hear you.You said 1 that do not have bars at all.This is a restaurant that has 2 what?a bar area.Well,the way it's been enforced,if you have a 4 RANDY TSUDA,I have no problem if the Commission wants to delete that last sentence.I believe it still would 4 designated bar area,then we have interpreted that to be a standalone bar as opposed to a restaurant that has no bar be consistent with the Town's alcohol policy.area. CHAIR BURKE,Commissioner Quintana.6 COMMISSIONER QUINTANA:So it currently has a COMMISSIONER QUINTANA:Along that line,in other 7 standalone bar? words what this is trying to do is say that a standalone bar RANDY TSUDA,Yes. 10 11 12 13 14 is not permitted,is that correct? RANDY TSUDA:A standalone bar is permitted if meals are being served and during the same period of time. COMMISSIONER QUINTANA,So currently this restaurant has a standalone bar? RANDY TSUDA:Right. COMMISSIONER QUINTANA:Okay. 10 11 12 13 14 COMMISSIONER QUINTANA,Okay. ALAIN STABLER:And if I may add,since we anticipate the liquor factor,we also are going to offer appetizers at the bar for whoever wants to have a glass of wine and food at the same time. COMMISSIONER QUINTANA:That's not what this says. CHAIR BURKE:Okay,we have no speakers on this. 15 RANDY TSUDA:And the alcohol policy has a 15 Oh,I need a speaker card.So I stand corrected,we do have 16 specific section entitled,"Restaurants with Standalone 16 a speaker if you want to bring the speaker card up.You will 17 Bars,"and it states ... 17 have time to rebut at the end and further questions.Please 18 COMMISSIONER QUINTANA:Okay,I think I need a 18 state your name and address for the record. 19 definition of "standalone bar,"because I assumed a 19 DEAN DEVENCINCI:My name is Deal Devencinci.I 20 standalone bar meant that you could go in and order liquor 20 live at 2384 Rupert Drive in San Jose.We own DD's Sports liquor if you were eating a meal. without having food,as opposed to a non-standalone bar, there could be physically a bar,but you could only have that there are restaurants that have wine,beer,and liquor We've been through this before with Forbes Mill but I just want to remind you that a bar doesn't necessarily don't mean to belittle anybody in the Planning Commission, Grille and we own Forbes Mill Steakhouse. Steakhouse.I would like to,for any uneasy minds,and I 24 21 22 23 25 Yes.The way it's been enforced isRANDYTSUDA: 24 22 21 23 25 LOS GATOS PLANNING COMMISSION 10/26/2005 Item #3,368 village Lane 9 LOS GATOS PLANNING COMMISSION 10/26/2005 Item #3,368 village Lane 10 ----------------------- mean there's a bunch of drunks hanging out there.What I've seen,what I've heard,being a merchant that lawn two bars in town,is that people like to have a martini or a scotch 4 before dinner,and then they have wine with dinner. 1 percent whoever has those two martinis,or whoever the two people are that have a martini up at the bar,are having dinner there.The bar supports the restaurant,not the restaurant supports the bar,so I'm here just to support our 5 10 11 12 13 14 15 16 17 Unfortunately our friends at Cafe Marcella have kind of fallen to the backseat because most everybody else has a liquor license and they're able to do what they're unable to do.In my opinion I think they have the best restaurant in town.My wife and I love to go in there,but it's an inconvenience to got to DD's to have a cocktail before. So what I would like to remind everybody is that from what I read their conditional use permit says that they close at 10:00 o'clock.Now if it's 10:30,which is last call,10:00 o'clock,whatever it is,a 10:00 o'clock time does not allow people to corne in there and get drunk.It's just not going to happen.If you're worried about the people that are walking down the street that are going to corne in 5 10 11 12 13 14 15 16 17 friends at Cafe Marcella and just remind everybody on the Planning Commission that just because it's a bar doesn't mean it's a big drunk-fest. CHAIR BURKE:Thank you.And I guess also competition is good.Jason Farwell. JASON FARWELL:Hi,Jason Farwell,18841 Blythwood Drive,Los Gatos. I've had some experience with this issue in my time here in town and I certainly support the application.I also concur with Mr.Kane up there regarding the enforceability issue because this is extremely hard to enforce.I've dealt with the issue for a number of years as a restaurant/bar owner. I would ask the question,because it is a little 19 venue,it's not going to happen at this wonderful 1818there,have a couple of shots,and then move onto the next unclear at this point,and my understanding of the code was 19 that in order for you to consume a drink at this type of 20 21 22 restaurant.A martini with dinner?Yes. I agree a hundred-percent with Mr.Kane with taking out that last sentence.It is a very gray area.If 20 21 22 establishment you'd have to have a meal with it,and it doesn't sound to me like that's the case anymore,and I was just wondering if I can get some clarification on that? 23 somebody wants to corne in and have a martini sitting at the 23 CHAIR BURKE:I believe Staff gave the three 24 25 bar,I think that should be allowed.They're not going to get the young kids in there.Chances are probably ninety- LOS GATOS PLANNING COMMISSION 10/26/2005 Item #3,368 Village Lane 11 24 25 situations where you could order a drink at the bar while waiting for a table,order a drink at the bar while you had LOS GATOS PLANNING COMMISSION 10/26/2005 Item #3,368 Village Lane 12 1 food at the bar,or have a drink at your table with your meal. JASON FARWELL:So exactly,we come back to the 1 could not serve at the bar unless food was being served along with it? JASON FARWELL:That's what was stressed to us. 5 point of enforceability,and the fact of the matter is that you can walk into any establishment here in town under this 4 That's what I was told. COMMISSIONER QUINTANA:I'm asking you if you 8 10 11 12 13 type of code and have a several drinks without having food. That's really just a point I'd like to make,and the enforceability issue here is one that I struggled with, because I dealt with the Town on a number of occasions where let's just say I had a number of close meetings with the Town regarding alcohol use.Thank you. CHAIR BURKE:Thank you.Commissioner Quintana,it looks like you have a question or comment. COMMISSIONER QUINTANA:You're saying from the 7 10 11 12 13 could instruct ... JASON FARWELL:Absolutely,we certainly did have a number of employee meetings letting them know what we expected of them.Again,what our employees did,you know, I'm sure that there were several drinks served without food, as there is in every establishment here in town.That's just a matter of fact. COMMISSIONER QUINTANA:Thank you. CHAIR BURKE:Commissioner Micciche. 14 standpoint of a restaurant owner,your ability to enforce 14 COMMISSIONER MICCICHE:Randy,could we put in a 15 16 that condition ... JASON FARWELL:That condition,and also the 15 16 condition that says if a customer comes in and says,"I have no intention of eating,"that they refuse to serve them? 17 Town's ability to enforce that condition,and how the Town 17 RANDY TSUDA:I personally would love to have that 18 would enforce that condition.Arbitrarily or ...18 expense account and monitor the situation at this 19 20 are not ... COMMISSIONER QUINTANA:As a restaurant owner,you 19 restaurant.Let me just point out,if the Commission has 20 concerns about the existing alcohol policy,this is the 21 JASON FARWELL:I'm no longer a restaurant owner.21 Council's alcohol policy and that needs to be referred to 22 23 24 25 I fortunately got out of the business. COMMISSIONER QUINTANA:As a previous restaurant owner,you weren't able to instruct your employees that they LOS GATOS PLANNING COMMISSION 10/26/2005 Item #3,368 Village Lane 13 22 23 24 25 the Council. CHAIR BURKE:Do any of the commissioners who have their hands raised have a question of Mr.Farwell? LOS GATOS PLANNING COMMISSION 10/26/2005 Item #3,368 Village Lane 14 1 JASON FARWELL:I think yeah,the intent point is a very good one.Thank you. CHAIR BURKE:Thank you.Do you want to ask positive.That's why I have no problem deleting the last 2 sentence;it simply repeats what has already been stated in the condition,just in a different way. 4 questions of Staff now,or do you want to get a rebuttal?4 COMMISSIONER QUINTANA:Okay,so it's both the COMMISSIONER KANE:I've got a motion.5 same.Okay. CHAIR BURKE:Well,we still have a pUblic hearing CHAIR BURKE:Commissioner O'Donnell. it's a fine restaurant and I agree that I think it 7 going on here. COMMISSIONER MICCICHE:Wait until we close.8 COMMISSIONER O'DONNELL:I just want to say that 10 11 12 13 14 15 CHAIR BURKE:Yes.So I see no more speaker cards. Would the applicant like to come back up and,I don't want to say rebut,but do you have anything?Or does anybody? Does the Commission have any questions of the applicant? Seeing none,if you want to remain seated,that's fine.I'll close the public hearing and I think people are going to jump the gun and try to get a motion on me.But I'm going to start at the far end.Commissioner Quintana. 10 11 12 13 14 15 (inaudible)bar would be very helpful.I think the policy (inaudible)I read the policy (inaudible)intention of the bar,as I think it was put,bars are to facilitate the restaurant,not the other way around.It's not a perfect world,but they could come in ostensibly for dinner and get up and leave and they can't stop them,but that's not their fault.And if they close at 10:00 or 10:30,I mean it's not going to be that kind of bar anyway.So I think the 16 COMMISSIONER QUINTANA:This is a question of 16 conditions we've got,and I agree with Michael that we ought 17 Staff.Since once we approve a conditional use permit it 18 goes with the land,I'm assuming that the last sentence in 19 #6 is somewhat of a protection for the Town should ownership 20 change and the ambience or quality of the restaurant change 17 18 19 20 to take out that last sentence of #6,but if we do that I think this is a fine thing to do.I would make the motion, but I think Michael wants to. CHAIR BURKE:Commissioner Kane,do you have a 21 to give the Town some ability of enforcement should there 21 comment,question? 22 become problems in the future?That's a question.22 COMMISSIONER KANE:I'm ready to make a motion 23 RANDY TSUDA:My read on the last sentence of that 23 when the chair is ready to receive a motion. 24 25 condition is it's just simply stating exactly what the first sentence states,but in the negative rather than the LOS GATOS PLANNING COMMISSION 10/26/2005 Item #3,368 Village Lane 15 24 25 LOS GATOS PLANNING COMMISSION 10/26/2005 Item #3,368 Village Lane 16 CHAIR BURKE:But are they losing the ability to 2 liquor in addition to beer and wine. 4 have people only at the bar to go get a glass of wine now, 4 5 CHAIR BURKE:Okay,does Commissioner Talesfore Wish to make a comment or have a question?If not I will turn it back to Mr.Kane to make a motion. COMMISSIONER TALESFORE:Can I make a comment? CHAIR BURKE:You make a comment,and I'll make a comment,and Mr.Kane can make a motion. 1 6 RANDY TSUDA:The difference is they now can serve where they won't be able to after this passes?That's what I'm thinking,not standalone bar,but destination standalone COMMISSIONER TALESFORE:This is a fine restaurant 7 bar.Or is that already a condition that they're not 10 11 12 13 14 in town.Without a reservation you really can't get in.I loved having wine with the meal because it enhances it.It saddens me somewhat to think that you're forced to compete in this world and you have to offer liquor when wine with your food is so phenomenal.I tend to think sometimes that liquor can deaden a meal.Anyway,that being said,I would support a motion. COMMISSIONER MICCICHE:You can still order wine, 10 n 12 13 14 technically supposed to be doing? RANDY TSUDA:Let me check the old condition. Their current use permit does not have that restriction.The use permit predates the Town's alcohol policy. CHAIR BURKE:So basically they're giving up the right to have somebody come in there for just a glass of wine to get full alcohol service? RANDY TSUDA:Right. 15 you know? 15 CHAIR BURKE:Okay,and the applicant is aware of 16 CHAIR BURKE:She will.16 -that?Okay.And as a longtime resident that saddens me,but 17 COMMISSIONER TALESFORE:Let's see,how many of 17 okay.So Mr.Kane,a motion. 18 you in here know me?18 COMMISSIONER KANE:I recommend we approve the 19 CHAIR BURKE:I want to make a question of staff 19 request,that we forward this application to the Town 20 21 just to make sure.Right now they have a permit for a standalone bar.Assuming this gets passed,they will no 20 21 Council_with the following recommendation that we approve the request to expand from beer and wine to full liquor longer have a permit for a standalone?Am I misreading that?22 23 24 RANDY TSUDA: CHAIR BURKE: No,they still have a permit. Oh right,and they have to serve 22 23 24 service with the findings as included in Exhibit A,and the recommended conditions for approval in Exhibit D with Item #6 as amended. 25 food with their standalone bar now? LOS GATOS PLANNING COMMISSION 10/26/2005 Item #3,368 Village Lane 17 25 LOS GATOS PLANNING COMMISSION 10/26/2005 Item #3,368 Village Lane 18 CHAIR BURKE:Mr.Kane,I'm going to interrupt you for a minute because I am confused based on the staff report.Are we making a recommendation? 1 may have full liquor service,or any restaurant of a certain 2 quality may have fUll liquor service,because otherwise they're noncompetitive with the other restaurants in town. in Section C of the staff report is what is correct. 10 CHAIR BURKE:Okay.Thank you. 11 COMMISSIONER KANE:That's my motion. 4 5 8 12 13 RANDY TSUDA:You are making a recommendation to the Town Council. CHAIR BURKE:It says the action of the Planning Commission is final unless appealed within ten days on the staff report.Is that incorrect?It's an error? RANDY TSUDA:It is an error.The recommendation CHAIR BURKE:Go ahead. COMMISSIONER KANE:That's it. 4 6 8 10 11 12 13 ORRY KORB:No doubt,and I'm assuming that that is a policy'suggestion that you're making to Counsel? COMMISSIONER QUINTANA:Yes,as part of forwarding our recommendation.I don't know if that needs to be made as part of the motion or is that just separate? CHAIR BURKE:I don't know.Would the maker of the motion like that to be made part of the motion?Would that carry more weight? RANDY TSUDA:It doesn't need to be as part of the motion.We can simply pass the comment on to the Council. CHAIR BURKE:Okay.Can I get a consensus on the 14 COMMISSIONER TALESFORE:And I second it. 14 comment?That way it's coming from the Commission.Is that a 15 COMMISSIONER BURKE:Before I call the question,15 consensus on that comment? 16 CHAIR BURKE:Okay,it looks like you have a do we have any questions or discussion?commissioner 17 Quintana. 16 17 COMMISSIONER MICCICHE:It's okay with me. 18 COMMISSIONER QUINTANA:Yeah,I'm going to support 18 consensus on the comment.Okay,we have a motion,a second. 19 the motion,but I do have a question.Maybe it's a question 19 All those in favor?It's carried. 20 of Counsel.It seems like everyone of these applications 20 ORRY KORB:And there are no appeal rights because 21 22 23 24 25 that comes before us that's some existing restaurant that has an existing standalone bar and is requesting full liquor service has been approved.I guess my question is would it simplify our process if we amended the alcohol policy to say if you have an existing restaurant with a standalone bar you LOS GATOS PLANNING COMMISSION 10/26/2005 Item #3,368 Village Lane 19 21 22 23 24 25 this is a recommendation to the Town Council,which will be hearing the application after a public notice. LOS GATOS PLANNING COMMISSION 10/26/2005 Item #3,368 Village Lane .20 REPORT TO: FROM: LOCATION: Date:=O-=.ct=0=b=er'-'I=9'-'-,=20.;:;..;0,,-=-5 For Agenda Of:October 26,2005 Agenda Item:--=3::.-_ The Planning Commission The Development Review Committee 368 Village Lane Conditional Use Permit U-06-003 Requesting approval to modify an existing Conditional Use Permit Application to expand from beer and wine to full liquor service (Cafe Marcella)on property zoned C-2.APN 529-04-053. PROPERTY OWNER:The Walter B.Franck Support Trust APPLICANT:Cafe Marcella,Inc. DEEMED COMPLETE:October 11,2005 FINAL DATE TO TAKE ACTION:April 11,2006 FINDINGS:-As required by Section 29.20.190 of the Town Code for granting a Conditional Use Permit. -As required by Section IV.B of the Redevelopment Plan for the Central Los Gatos Redevelopment Project that it meets the use set forth in the Town's General Plan. -It has been determined that this project is Categorically Exempt pursuant to Section 15301 of the State Environmental Guidelines as adopted by the Town. ACTION:The decision of the Planning Commission is final unless appealed within ten days. EXHIBITS:A.Required Findings B.Resolution 2001-106 (4 pages) C.Existing Conditions of Approval D.Proposed Conditions of Approval including the modification requested by the applicant (2 Pages) E.Letter of Justification,received August 1,2005 (2 pages) F.Existing Floor Plan,received August 31,2005 RECOMMENDATION SUMMARY:Forward a recommendation to the Town Council. A.BACKGROUND: On July 5,1977,Conditional Use Permit Application U-77-12 was approved by the Town Council for a restaurant at 368 Village Lane.On May 27,1981,Conditional Use Permit Application U-81-9 Attachment 5 The Planning Commission -Page 2 368 Village LanefU-06-3 October 26,2005 was approved by the Planning Commission to expand the floor area of the existing restaurant.The approvals also allowed the restaurant to serve beer and wine with meals.Full liquor service was not requested at that time (See Exhibit C).In the fall of 1991 Cafe Marcella opened at this location. B.REMARKS: The applicant is requesting approval to modify their existing Conditional Use Permit to allow an expansion from beer and wine service to full liquor service in conjunction with meals.The applicant states that this request is necessary due to competition from other local restaurants that have obtained permission for full liquor service (Exhibit E).All other existing operations,including hours of operation and seating capacity,will remain unchanged.Staff has added a condition (Exhibit D, Condition #6)which states that service of beer,wine,and liquor at the existing bar is permitted only with meals. The Police Department has reviewed this proposal and believes that this is a reasonable request given that the existing business does not have a history of complaints and is in good standing with the Police Department.Additionally,staff has determined that this request for full liquor service complies with the Town's Alcohol Policy and that the approval of this request will not create any additional impacts because the existing restaurant will continue to operate in the same manner it has for the last 14 years. C.RECOMMENDATION: Pursuant to the Town's Alcohol policy,this matter will be forwarded to the Town Council for final consideration.The Commission should forward this application to the Council with the following recommendation: 1.Approval of the request to expand from beer and wine to full liquor service with the Findings included as Exhibit A;and 2.If the Commission has concerns with the application,it can: a.Recommend approval of the application with modified conditions,or b.Make the findings and recommend denial of the application. Bud N.Lortz,Director of Community Development Prepared by:Joel Paulson,Associate Planner BNL:1P:mdc cc:The Walter B Franck Support Trust,19050 Skyline Blvd.,Los Gatos,CA 95033 Cafe Marcella,Inc.,368 Village Ln.,Los Gatos,CA 95030 N:\DEV\REPORTS\200S\368Village.wpd REQUIRED FINDINGS FOR 368 Village Lane Conditional Use Permit U-06-003 Requesting approval to modify an existing Conditional Use Permit Application to expand from beer and wine to full liquor service (Cafe Marcella)on property zoned C-2.APN 529-04-053. PROPERTY OWNER:The Walter B.Franck Support Trust APPLICANT:Cafe Marcella,Inc •As required by Section 29.20.190 of the Town Code for granting a Conditional Use Pennit. The deciding body,on the basis of the evidence submitted at the hearing,may grant a conditional use permit when specifically authorized by the provisions of the Town Code if it finds that: (1)The proposed uses of the property are essential or desirable to the public convenience or welfare;and (2)The proposed uses will not impair the integrity and character of the zone;and (3)The proposed uses would not be detrimental to public health,safety or general welfare;and (4)The proposed uses of the property are in harmony with the various elements or objectives of the General Plan and the purposes of the Town Code. •That the work proposed is consistent with the Redevelopment Plan for the Central Los Gatos Redevelopment Project Area (Section IV.B). •As required by Section 15301 ofthe State Environmental Guidelines as adopted by the Town that this project is Categorically Exempt. N:\DEV\FINDINGS\368Village.wpd POLICY REGULATING THE CONSUl'rfPTION AND SERVICE OF ALCOHOLIC BEVERAGES L 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 oflife 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 deterniined on a case by case basis.The following provisions are intended to balance the protection ofresidential neighborhoods in close proximity to commercial districts and still maintain the viability ofour 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.. Thedecidingbodyrnay approve a conditional useperrnit to serve alcoholic'beverages based 'onthe merits of the application and subject to the following requirements:' II.'General policy 1.The Town shall continue to stro ngly 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 ar~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 pe~t in good standing allowed to serve alcoholic beverages past the hours stated above may continue to operate under their existing hours of operation. \ .Town of Los Gatos Alcoholic Beverage Policy . Page 20/4 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 ofPoli~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 Californian restaurant Association. D.All licensed operators shall have and shall actively promote a designated driver program suchas-compllmentary 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 10PM: 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 combfuation 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 ofLos Gatos Alcoholic Beverage Policy Page 3 of4 IlL 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 1 i PM Sunday through Thursday and until·12 midnight Friday,SatUrday,holidays and evenings before holidays,whichever is earlier,iflate night bar·service is available.Specific hou.r~of operation for each establishment are determined upon issuance of a conditional use .permit. IV.·Review Process .1..Propos8ls for new bars .or .res-taurants with bars and allr·equests for new alcohol service or a change to existing ·service shall be reviewed by the Pla.Tl.rllng COITuT1jssion. 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. ....-e. Tcrwn ofLos 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 v.rill 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 pennit if it finds that sufficient grounds exist. IV.Enforcement All conditional'use pennits 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 ifit is detennined that the sale of alcOhol has become a nuisance to the Town's public health,safety or welfare.Enforcement ofsection29.20.310(b)of the Town Code will be based on,but not limited to,the following factors: 1.The number and types of cal1sJor service at or near the establishment which that are a direct:result of patrons a?tiq~; II.The i1~ber of complamts recei~ed from residents ad other citiZens concerning the operation of an establishment; m.The numbet;'of arrests for alcohoL drug,disturbing the peace,fighting and public nuisance violations associated with an establish.m:ent; 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:\DEV\SlJZ.ANNF.\Counc:il\Alcobo Po!ioy\21lO l alcobol policy.wpd .......,,7 TOWN of LOS GATOS Planning Department 354-6872 June 1,1981 Walter and Joan Franck 368 Village Lane Los Gatos,California 95030 Re:Conditional Use Permit Application U-8l-9 Dear Mr.and Mrs.Franck: On May 27,1981 the Town Planning Commission approved the above application requesting approval of plans to expand the floor area of an existin~restaurant located at 360-368 Village Lane,subj ect to the following condi tioris: 1.The number of seats shall not exceed 96. 2.The hours of operation are limited to the period from 11:30 a.m.to 2:30 p.m. and 5·;30 p.m.to 10:00 p·~m.daily. 3.Three street tree wells shall be provided subject to the approval of the Parks and.Forestry and Public Works Departments. 4.Details of the trash enclosure and its location shall be subj ect to the approval of the·Planning Director and Fire Department. 5.Interior exit signs,panic hardware and exhaust hood and duct system fire protection shall be installed to the satisfaction of the Fire Department. NOTE:Pursuant to Section 5.·20.050 of the Zoning Ordinance".-this approval maybe appealed to -the Town Council within seven (7)days of the da-te -the approval is. .granted.Therefore"-this ac-tion for approval should not be considered final"and no permits by the Town will be issued ~ntil the appeal period has passed.. Very truly yours, LEE E.BOWMAN Planning Director LEB:pd cc:Ms.Sharon Silver Development Review Committee CIVIC CENTER ~110 EAST MAIN STREET ~P.O.BOX 949 <l>LO$GATOS,CALIFI Exhibit C RECOMMENDED CONDITIONS OF APPROVAL FOR: 368 Village Lane Conditional Use Permit U-06-003 Requesting approval to modify an existing Conditional Use Permit Application to expand from beer and wine to full liquor service (Cafe Marcella)on property zoned C-2.APN 529-04-053. PROPERTY OWNER:The Walter B.Franck Support Trust APPLICANT:Cafe Marcella,Inc TO THE SATISFACTION OF THE PLANNING DIRECTOR: (Planning Section) 1.APPROVAL:This application shall be completed in accordance with all of the conditions of approval listed below and in substantial compliance with the plans approved and noted as Exhibit F in the report to the Planning Commission.Any changes or modifications made to the approved plans shall be approved by the Director of Community Development or the Planning Commission,depending on the scope of the changes. 2.LAPSE FOR DISCONTINUANCE:If the activity for which the Conditional Use Permit has been granted is discontinued for a period of one (1)year the approva11apses. 3.NUMBER OF SEATS:The maximum number of seats for the restaurant shall not exceed 96. 4.HOURS OF OPERATION:Maximum hours of operation for the restaurant shall be 11:30 a.m . .to 2:30 p.m.and 5:30 p.m.to 10:00 p.m.seven days a week. 5.ALCOHOL SERVICE:The service ofbeer,wine,and liquor for the restaurant is permitted only with meals.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. 6.EXISTING BAR:The service ofbeer,wine,and liquor at the existing bar is permitted only with meals.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.Service of beer,wine,or liquor without meals at the existing bar is not permitted at this location. 7.LIVE ENTERTAINMENT:No live entertainment shall be provided unless the applicant receives future approval of live entertainment. 8.TAKE OUT SERVICE:There shall be no dedicated walk up counter. TO THE SATISFACTION OF THE CHIEF OF POLICE: 9.UNIFORMED SECURITY:Uniformed privately provided security guards maybe required in or around the premises by the Chief of Police if alcohol related problems recur that are not resolved by the licensed owner. 10.CONSULTATION AND TRAINING:At the discretion ofthe ChiefofPolice,periodic meetings will be conducted with representatives from the Police Department for on-going employee training on alcoholic beverage service to the general public. 11.TRAINING MANUAL:The restaurant operator shall use an employee training manual that addresses alcoholic beverage service consistent with the standards of the California Restaurant Association. 12.DESIGNATED DRIVER PROGRAM:The restaurant operator shall actively promote a designated driver program such as complimentary non-alcoholic beverages for designated Exhibit D 368 Village Lane /U-06-003 October 26,2005 drivers. 13.POSTING OF TAXICAB TELEPHONE NUMBERS:Taxicab telephone numbers shall be posted in a visible location. TO THE SATISFACTION OF THE DIRECTOR OF PARKS AND PUBLIC WORKS: (Engineering Division) 14.INDEMNITY AGREEMENT.An indemnity agreement releasing the Town from any liability associated with the trash enclosure,and stating that the right to maintain a trash enclosure on Town property may be revoked at any time shall be signed prior to construction. 15.GENERAL.All public improvements shall be made according to the latest adopted Town Standard Drawings and the Town Standard Specifications.All work shall conform to the applicable Town ordinances.The adjacent public right-of-way shall be kept clear of all job related dirt and debris at the end of the day.Dirt and debris shall not be washed into storm drainage facilities.The storing of goods and materials on the sidewalk and/or the street will not be allowed unless a special permit is issued.The developer's representative in charge shall be at the job site during all working hours.Failure to maintain the public right-of-way according to this condition may result in the Town performing the required maintenance at the developer's expense. 16.ENCROACHMENT PERMIT.All work in the public right-of-way will require a Construction Encroachment Permit.All work over $5,000 will require construction security. 17.PUBLIC WORKS INSPECTIONS.The developer or his representative shall notify the Engineering Inspector at least twenty-four (24)hours before starting any work pertaining to on- site drainage facilities,grading or paving,and all work in the Town'sright~of..·way;Failure to do so will result in rejection of work that went on without inspection. 18.RESTORATION OF PUBLIC IMPROVEMENTS.The developer shall repair or replace all existing improvements not designated for removal that are damaged or removed because of developer's operations.Improvements such as,but not limited to:curbs,gutters,sidewalks, driveways,signs,pavements,raised pavement markers,themioplastic pavement markings,etc. shall be repaired and replaced to a condition equal to or better than the original condition. Existing improvement to be repaired or replaced shall be at the direction of the Engineering Construction Inspector,and shall comply with all Title 24 Disabled Access provisions. Developer shall request a walk-through with the Engineering Construction Inspector before the start of construction to verify existing conditions. 19.CONSTRUCTION NOISE.Between the hours of8:00 a.m.to 8:00 p.m.,weekdays and 9:00 a.m.to 7:00 p.m.weekends and holidays,construction,alteration or repair activities shall be allowed.No individual piece of equipment shall produce a noise level exceeding eighty-five (85)dBA at twenty-five (25)feet.If the device is located within a structure on the property,the measurement shall be made at distances as close to twenty-five (25)feet from the device as possible.The noise level at any point outside of the property plane shall not exceed eighty-five (85)dBA. N:\DEV\CONDITNS\2005\368ViIIage.wpd Letter of Justification Cafe Marcella,Inc. 368 Village Lane"' Los Gatos,CA 95030 408590-0901 RECElVE:D AUG.1 2005 TOWN OF LOS GATOS PLANNING DIVISION" .lbis letter ofjustification pertains to our request for a change in the Use Pennit for Cafe Marcella to allow the service of liquor on the premises. Introduction Cafe Marcella began in the full of 1991 as a small start up with expectations ofbecoming an exceptional restaurant highly regarded by restaurant goers as a place for fine food,:fine wine,neighborhood comfort,and great value,and by the town as a successful,growing bUsiness.We have achieved most of what we had expected.However,competition has increased significantly in Los Gatos since our inception,and we are fmding it . increasingly difficult to compete successfully with other licensed restaurants who hold on-preniise beer,wine,and spirit licenses." ·.When we first opened we believed that beverage consumption trends jUstified having only an on-premise beer and wine license.However,those trends have changed radically,and liquorconsumptio~as an aperitif or cocktail,has increased significantly. As a resul~over the last few years we have watched our bar business erode from a ·packed bar from opening to closing to only a handful of guests who are waiting for their table~This trend has forced us to examine our competition and to re-think.our initial. business strategy. .". For us to continue as a successful member of the Los Gatos business community it has become imperative that we obtain an on-premise license for the sale of liquor in the Restaurant.We.are writiilg this letter ofjustification in order to obtain a change in our ·Use Permit so that we can apply to the Alcoholic Beverage Control in order to obtain that license.. The Plan As we already have a bar in the restaurant,we do not plan to make any changes in the current design of the restaurant.There will be no construction or alterations which would require a filing with the Town ofLos Gatos.The liquor selection will be a simple one with only a few selections that 'repr~sent the quality ofthe restaurant and will require no additional storage space in the bar ar~ Environmental Concerns As there will be nO changes to the existing facility there will be no impact .on the enviromilent.We will have no additional drains affecting the plumbing or any chab.ges in the electrical corifiguration which would affect the existing wiring. Exhibit E 55' 35' I o J....-+--12·4·''--.....H Dining Room ALK-IN ,-----, I....__.._....._J I 6'x9' -......----16·4,----......... cafe Marcella Restaurant On Primise Beer and Wine License 41-265963 I 1--... I 24'S"I 22'w LkI~ I----1"""----.- I I U------• I I I I Pizza I I Oven I I I I J L...J r--- 1S'4 9"1-... Bar -19'6' I Dining Room I ~11-----------37'--------__ Exhibit F REPORT TO: FROM: LOCATION: Date:~O~ct~o~b~er'_.:2~6~·,.::.20,:,:.;0=5 For Agenda Of:October 26,2005 Agenda Item:---'3~_ DESK ITEM The Planning Commission The Development Review Committee 368 Village Lane Conditional Use Permit U-06-003 Requesting approval to modify an existing Conditional Use Permit Application to expand from beer and wine to full liquor service (Cafe Marcella)on property zoned C-2.APN 529-04-053. PROPERTY OWNER:The Walter B.Franck Support Trust APPLICANT:Cafe Marcella,Inc. EXHIBITS: A.REMARKS: A-F. G. Previously Submitted Complete copy of Letter of Justification (2 Pages) During photocopying of Planning Commission packet materials the second page of the applicant's Letter of Justification was not reproduced.As a result,Exhibit G shall replace Exhibit E. Bud N.Lortz,Director of Community Development Prepared by:Joel Paulson,Associate Planner BNL:JP: N:\DEV\REPORTS\2005\368VillageDesk.wpd Attachment 6 ~! .{' ------~._--~~-.. Letter of Justification Cafe Marcella,Inc. 368 Village Lane" Los Gatos,CA 95030 408590-0901 RECEtVE:D AUG.1 2005 TOWN OF LOS GATOS PLANNING DIVISiON' .'This letter ofjustification pertains to om request for a change in the Use Permit for Cafe Marcella to allow the service of liquor Qn the premises. Introduction Cafe Marcella began in the fii.ll of 1991 as a small start up with ex.pectations of becoming an exceptional restaurant highly regarded by restamant goers as a place for :fine food;:fine wine,neighborhood comfort,and gr~at value,and by the town as a successful,growing bUsiness.We have achieved most of what we had expected.However,competition has increased slgnificantly in Los Gatos since om inception,and we are finding it . increasingly difficult to compete successfully with other licensed restaurants who hold on-preniise beer,wine,and spirit licenses.'. ·.When we first opened we believed thatbeverage consumption trends justified having ·only an on-premise beer and wine license.However,those trends have changed . radically,and liquor.consumption,as an aperitif or CQcktail,has increased significantly. As a result,.over the last few years we have watched om bar business erode from a ·packed bar from opening to closing.to only a handful of guests who are waiting for their .table~This trend has forced us to examine our competition and to re-think our initial. business strategy. For us to continue as a'successfulmemberofthe Los Gatos business community it has become imperative that we obtain an on-premise license for the sale of liquor in the Res1aUrant.We.are writmg this letter ofjustification in order to obtain a change in our ,Use Permit so that we can apply to the Alcoholic Beverage Control in order to obtain that license. The Plan As we already have a bar in the restamant,we do not plan to make any changes in the current design oftbe restaurant.There will be no construction or alterations which would require a filing with the Town of Los Gatos.The liquor selection will be a simple one with only a few selections thatrepresentthequality ofthe restaurant and will require no additional storage space in the bar ar~a. Environmental Concerns As there will be :0.0 changes to the existing facility there will be no impact .on the environment.We will have no additional drains affecting the plumbing or any chahges in the electrical co:rifiguration which would affect the existing wiring. Exhibit G Hazardous Material~and Air Quality The inclusion of liquor in our beverage selection will not create any hazardous materials or impact the restaurant's air quality. Conclusion . As a long time member of the Los Gatos business community we feel it is incumbent upon the town to grant us our request for a change in our Use Permit~As this is a simple alteration in the Use Permit which requires no structural,plumbing,or electrical modifications in order to make the chaliges;we see no reason why the Town ofLos Gatos would decline to grant us this change..The granting ofthis change would give us the ability to offer our guests what they want.In the interim our guests have found it necessary to drink elsewhere before they come to·dine,or,even worse,to dine at an establishtnent where they can order cocktails and spirits. Ifwe are to contintie to succeed in this highly competitive inarketas a member of the Los Gatos business community we need to be able to compete on an even level with:the other restaurants.We ask that you grant us the opportunity to do just that.Please find.it in your thoughtful jurisdiction to grant our request for this change in our Use Permit. Sincerely, Alain and Martine Staebler, Proprietors Cafe Marcella ...-::::-.-_.._"........ ~€i:~ ~0 POLICY REGULATING THE CONSU1\1PTION AND SERVICE OF ALCOHOLIC BEVERAGES L Purpose The consumption or service of alcoholic beverages,if not regulated,can jeopardize public safety;result in an increase of calls for poUce services and compromise the quality of life for· Tovrn residents.This policy provides parameters for alcohoUc beverage service,particularly. addressing late nlght service when alcohol related incidents are most likely to occur and when the disturbances to Town residents is least tolerable. ". The semce"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 ofresidential neighborhoods in close proximity to commercial districts and still maintainthe viability ofour commercial centers in which restaurants have an essential .role ..Hours of operation maybe 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 'onthe merits of the application and subject to the following requirements:. IL .General policy ... 1.The Town shall continue to stro ngly discourage new applications for stand alone bars .or restaurants with separate bars. 2.The Town shall continue to discOUrage applications for entertainment establishments seiving alcoholic.beverages. 3.Entertainment in association with an eating or drinking establishment may be allowed if standards and a permit process ar~adopted." 4.Alcoholic beverage service for new conditional use permit applicatio.ns or applications for modification of a conditiornil 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 pe~t in good standing allowed to serve alcoholic beverages past the hours stated above may continue to operate under their existing hours of operation. Attachment 7 \ ,Tawn of Los Gatos Alcohoiic 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. C.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 pasted in a visible lo~ation. 6.'The deciding body shall make the following findings prior to approving an·application for conditional use permit to serve alcoholic beverages past lOPM: 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 offood 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 approvecl outdoor seating areas may be pennitted.if adequate separation from public areas is provided as determined by the ToVlTl Manager.The separation shall clearly suggest that alcohol is nat allowed outside the restaurant seating area. :, -'. Town oj Los Gatos Alcoholic Beverage Policy Page 3014 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 orily 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,ifhlte night bar-service is available.Spee1fi.c hour~of operation for each establishment_are determined upon issuance ofa conditional use _permit.-- IV.-Review Process -1._Proposals for new bars _or _reStaurants withbars and all :r-equests for new alcohol service or a change to existing-service shall be reviewed.by the Planrling Corrunjssion_ 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 shaH be reviewed by the'Conirnunity 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 Di.rector of Community Development becomes aware of anyalcohoi 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 ofLos Gatos Alcoholic Beverage Policy Page 4 of 4 d.If there are violations of the use pennit that have not been voluntarily corrected by the business owner the matter will be forwarded to the Planning Corrunission for public hearing 'pursuant to Section 29.20.3 10 of the Zoning Ordinance. e.Pursuant to Section 29.20.315 of the Zoning Ordinance the Planning ~Corrunission may revoke or modify the conditional use pennit.if it finds that sufficient grounds exist. N.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 enfofcement action ifit is determined that the sale of alcohol has become a nuiSBllGe to the Town's public health,safety or welfare.Enforcement of section 29.20.31O(b)ofthe Town Code will be based on,but not limited to,the following factors: L The number and types of eausfor service at or near the estal;llishment which that are a direct:result of patrons actiqns; II.The n~ber of complaints recei~ed from residents ad other citiZens Concerning the operation of an establishment; m.The number of arrests fOf a1coho~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 bever~e 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.