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2010-094 - Modify Conditional Use Permit Los Gatos Bar & Grill 15 1/2 N. Santa Cruz AvenueRESOLUTION 2010 -094 RESOLUTION GRANTING APPROVAL TO MODIFY A. CONDITIONAL USE PERMIT TO INCREASE THE HOURS OF OPERATION, INCREASE THE NUMBER OF SEATS, AND ALLOW LIVE ENTERTAINMENT IN A BAR AND RESTAURANT (LOS GATOS BAR & GRILL) ON PROPERTY ZONED C- 2:LHP. APN: 510 -44 -077 CONDITIONAL USE PERMIT APPLICATION: U -10 -011 PROPERTY LOCATION: 15' /Z N. SANTA CRUZ AVENUE PROPERTY OWNER: LA CANADA INVESTMENTS, LLC APPLICANT: DAVE POWELL, LGBG, LLC WHEREAS: A. This matter came before the Town Council for public hearing on September 20, 2010, and was regularly noticed in conformance with State and Town law. B. The applicant seeks to modify an existing Conditional Use Permit (CUP) to increase the hours of operation, increase the number of seats, and allow live entertainment for a restaurant with a separate bar (Los Gatos Bar and Grill) on property zoned C- 2:LHP. Currently, the CUP allows hours of operation of 11:00 a.m. to 11:00 p.m. Sunday through Thursday, and 11 :00 a.m. to 1 :00 a.m. Friday, Saturday, holidays, and evenings before holidays, a maximum of 120 seats, and no live entertainment. However, the applicant is requesting hours of operation of 9:00 a.m. to 2:00 a.m. seven days a week, a maximum of 216 seats, and approval to provide live entertainment. C. On August 25, 2010, the Planning Commission considered the request to modify an existing CUP to increase the hours of operation, increase the number of seats, and allow live entertainment for a restaurant with a separate bar (Los Gatos Bar and Grill) on property zoned C- 2:LHP. The Commission recommended denial of the request finding that the use meets does not meet the requirements of the Alcoholic Beverage Policy and the Standards for Outdoor Restaurant Seating. D. The Town's Alcohol Beverage Policy requires any change in the service of alcoholic beverages to be approved by Council. Council reviews CUP requests for a change in alcohol service on a case -by -case basis to ensure that the request is appropriate for the specific restaurant and its location. E. The Town's Alcoholic Beverage Policy gives the hearing body discretion to approve alcoholic beverage - service on a case -by -case basis when the proposal will not negatively impact residential neighbors, alcohol related incidents will not occur, and when the application will provide a positive impact to the commercial area. F. Council received testimony and documentary evidence from the applicant and all interested persons who wished to testify or submit documents. Council considered all testimony and materials submitted, including the record of the Planning Commission proceedings and the packet of material contained in the Council Agenda Report dated September 9, 2010, along with any and all subsequent reports and materials prepared concerning this application. G. Council finds as follows: 1. Pursuant to Town Code section 29.20.190, the requested modification of an existing CUP is desirable to the public convenience; will not impair the integrity and character of the zone; would not be detrimental to public health, safety or general welfare; and is in harmony with the various elements or objectives of the General Plan and the purposes of the Town Code. This finding is based on the evidence presented in the Council Agenda Report dated September 9, 2010, and incorporates the findings made by the Town Council on September 9, 2010, regarding this application. 2. The Alcoholic Beverage Policy allows the Council to consider unique circumstances which apply to the subject application. 3. Nearby bars are open until 2:00 am and the subject proposal (a restaurant with a separate bar) would provide a late night dining option for residents and visitors. 4. The condition allowing the Police Chief and the Community Development Director the ability to suspend the use of live DJs and live bands if the DJs or bands are determined to be detrimental to public health, safety, or welfare, and the conditions regarding security will mitigate potential impacts. 5. The project is categorically exempt from environmental review pursuant to Section 15301 of the State Environmental Guidelines as adopted by the Town. 6. The proposed use is consistent with the Redevelopment Plan for the Central Los Gatos Redevelopment Project Area (section IV.13), as evidenced by the staff report prepared for the public hearing on August 25, 2010 RESOLVED: 1. The CUP application U -10 -011 for modification of an existing CUP is granted subject to the Conditions of Approval. 2. The Conditions of Approval attached hereto as Exhibit A are hereby adopted as the Conditions of Approval for modification of this permit. 3. The decision constitutes a final administrative decision pursuant to Code of Civil Procedure section 1094.6 as adopted by section 1.10.085 of the Town Code of the Town of Los Gatos. Any application for judicial relief from this decision must be sought within the time limits and pursuant to the procedures established by Code of Civil Procedure section 1094.6, or such shorter time as required by State and Federal Law. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California on the 20"' day of September 2010, by the following vote. COUNCIL MEMBERS: AYES: Joe Pirzynski, Steve Rice, Mike Wasserman, and Mayor Diane McNutt NAYS: Barbara Spector ABSENT: ABSTAIN: SIGNED: F ATTEST: CLERK O E TOWN OF LOS GATOS LOS GATOS, CALIFORNIA MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA RECOMMENDED CONDITIONS OF APPROVAL — September 20, 2010 15 1/2 N. Santa Cruz Avenue Conditional Use Permit U -10 -011 Requesting approval to increase the hours of operation to allow live entertainment in a bar and restaurant (Los Gatos Bar & Grill) on property zoned C- 2:LHP. APN 510 -44 -077. PROPERTY OWNER: La Canada Investments, LLC APPLICANT: Dave Powell, LGBG. LLC TO THE SATISFACTION OF THE DIRECTOR OF COMMUNITY DEVELOPMENT: Planning Division 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 noted as received by the Town on July 6, 2010. Any changes or modifications to the approved plans shall be approved by the Community Development Director, the Development Review Committee, the Planning Commission, or Town Council, depending on the scope of the changes. 2. APPROVED USE. The subject approval is for a high turnover (sit down) restaurant with a separate bar. 3. OPERATIONAL AGREEMENT. Prior to the issuance of any building permits or the initiation of any operational changes permitted under this approval, the applicant shall enter into an operational agreement with the Town guaranteeing the, performance of the business per the representations of the application and the applicant at the public hearings as well as the observance of the conditions of approval. Said agreement shall be subject to approval of the Chief of Police, the Director of Community Development Department, and the Town Attorney and will be signed by the applicant. Operators who are successors in interest to the CUP shall be required to meet with the Town CDD Director and Chief of Police and agree to all the terms of the Operational Agreement by executing a copy of the Agreement. 4, ENTERTAINMENT, Live DJs are allowed seven days a week. Live bands are allowed once a month for a period of one year. The applicant has agreed to be bound by the new live entertainment policy when adopted by the Town and therefore, this Conditional Use Permit shall be subject to the live entertainment standards once adopted. If the policy is not adopted within one year of the beginning of the LGBG operation, applicant can file for a modification to the CUP to allow live entertainment beyond the one -year limitation. 5. HOURS OF OPERATION. Maximum hours of operation for the interior restaurant and bar shall be from 9:00 a.m. to 2:00 a.m., seven (7) days per week. Maximum hours of operation for the outside private patio /deck located south of the common use stairwell shall be from 9:00 a.m. to 11:00 p.m., seven days a week. The operator /owner shall ensure that the outside private patio /deck area is closed to any use by any persons after 11:00 P.M. 6. ALCOHOLIC BEVERAGE SERVICE. Alcohol service shall cease at 1:30 am. Alcoholic beverage service is permitted in the dining area and on the outdoor patio only in conjunction with meal service. Alcoholic beverage service independent of meal service is permitted only during the hours that meal service is available. The configuration/location of the dining area may change but at all times at least 50% of the maximum allowed number of seats shall be used as dining area where alcoholic beverage service is allowed only in conjunction with meal service. 7. MEAL SERVICE. Meal and food service shall cease at 2:00 am. Meal service shall be available during hours of operation. A meal shall be defined as a combination of meal items selected from a menu which would constitute a normally accepted "meal" (breakfast, lunch, dinner, or brunch). Appetizers such as popcorn, nachos, pretzels, potato skins, relish trays, etc., 'shall not be considered meals. 8. SEATS AND PEAK OCCUPANCY. The maximum number of seats for all hours shall not exceed 166, including no more than 32 in the private patio /deck area and there is: (a) a maximum patron occupancy of 1.66 before 9:00 p.m., except as may be separately approved in subsection (c) for special events; (b) a maximum assembly occupancy of 267 patrons during the hours of 9:00 p.m. until 2 a.m. only; and (c) a mechanism whereby LGBG may seek from the TOWN Police Chief permission to conduct special events with patron occupancy greater than 166 but less than 268 before 9 :00 p.m. on an occasional basis. The terms of the mechanism, among other terms will be set forth in the operational . agreement. 9. GREASE BARREL. The barrel maintained for cooking grease shall be kept within its designated enclosure, except when being emptied. It shall never be permitted to leak or overflow. 10. GREASE INTERCEPTOR. If a food grinder and /or dishwasher are used, a minimum 1,000 gallon grease interceptor must be installed. 11. POOL TABLES. The number of pool tables shall not exceed two. 12. UTENSILS. All meals served on -site shall be served on re- usable utensils. 13. TAKE -OUT CONTAINERS. Any take -out food shall be served on recycled containers. 14. EXTERIOR CHANGES. Before issuance of any building permit for the approved use, approval of an Architecture and Site application shall be obtained from the Town for exterior changes and outdoor seating. If the Applicant has not secured approval of the A &S by the time they are legally able to open for business, the Director of Community Development may grant an extension to this condition (and related conditions dealing with exterior modifications relative to the A &S) provided: (1) the applicant has no later than December 30, 2010 filed a complete application for the A &S, including the payment of all fees; (2) no later than March 30, 2011 secured final approval of the A &S; and (3) no later than May 30, 2011 completed installation of the required improvements, including final sign -off by the Town. If the applicant fails to comply with any time frame set forth herein, the applicant shall immediately cease all use of the common use deck and patio areas and shall not be permitted to use the common use deck and outside patio until the improvements are installed and signed -off by Town. 15, TRELLIS. No trellis shall be attached to the exterior of the building. 16. OCCUPANCY. The occupancy shall be as set forth in Condition #8 and shall not be modified except through a formal modification of this CUP, unless the fire department determines the maximum occupancies must be reduced. 17. TRASH DISPOSAL HOURS: Trash from the business shall only be emptied between 9:00 a.m. and 9:00 p.m. to limit the noise impacts on the neighbors. 18. NEIGHBORHOOD NOTIFICATION. The applicant shall provide written notice to property owners and occupants within at least 500 feet' of the site that they are permitted to operate a restaurant with a separate bar. A copy of this notice shall be provided to the Town. The notice shall include a local phone number to call if an issue arises during operation. This notice shall be sent only one time and must be sent within 60 days of the approval of this conditional use permit or not less than ten (10) days prior to commencing business operation. The noticed area shall be approved by the Town. The applicant shall work with the Chamber of Commerce to provide contact information in the Chamber's newsletters. 19. HOTLINE. A direct telephone "hot" line shall be established for complaints to be relayed directly to the Business Manager. This telephone number will be provided via letter from the Business Manager to surrounding residents and the Town of Los Gatos. The Town shall be informed of any complaints to ensure the complaint is adequately addressed and to allow complaints to be monitored and tracked. 20. ROOF EQUIPMENT SCREENING. All new and replaced roof top equipment must be screened from view from a public right -of -way. 21. NOISE. Noise attenuating shielding devices such as fencing or other appropriate improvements shall be installed along the common use deck and at the outdoor patio to the satisfaction of the Director of Community Development and the Chief of Police. The Historic Preservation Committee will review the proposed improvements as part of the A &S application process per Condition #14. The operator shall take responsibility for installation of the required noise attenuation improvements along the deck and for any off -site disturbances caused by tenants and patrons of the businesses in the building. 22. OUTDOOR AND PATIO LIGHTING. Exterior lighting shall be kept to a minimum, and shall be down directed fixtures that will not reflect or encroach onto adjacent properties. No flood lights shall be used unless it can be demonstrated that they are needed for safety or security. The lighting plan and installation shall be reviewed during building plan check as part of the A &S process, if applicable, and prior to occupancy to the satisfaction of the Director of Community Development and the Chief of Police. 23, COMMUNITY BENEFIT. The applicant has offered the following Community Benefit to offset traffic impacts created by the proposed project: 24 hours a day, seven days a week video surveillance of municipal parking lot six to the satisfaction of the Chief of Police. 24, TOWN INDEMNITY. Applicants are notified that Town Code Section 1.10.115 requires that any applicant who receives a permit or entitlement from the Town shall defend, indemnify, and hold harmless the Town and its officials in any action brought by a third party to overturn, set aside, or void the permit or entitlement. This requirement is a condition of approval of all such permits and entitlements whether or not expressly set forth in the approval, and may be secured to the satisfaction of the Town Attorney. TO THE SATISFACTION OF THE DIRECTOR OF PARKS AND PUBLIC WORDS: Engineering Division 25, 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. 26. 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. 27. -SIDEWALK CLOSURE. Any proposed blockage or partial closure of the sidewalk requires an encroachment permit. Special provisions such as limitations on works hours, protective enclosures, or other means to facilitate public access in a safe manner may be required. 28. PARKING. Any proposed parking restrictions must be approved by LGP 29. TRAFFIC STUDY. The developer shall pay a fee for traffic analysis per Town Traffic Impact Policy, 30, TRAFFIC IMPACT MITIGATION FEE (COMMERCIAL). The developer shall pay a fee proportional to the project's share of transportation improvement needed to serve cumulative development within the Town of Los Gatos. The fee amount will be based upon the Town Council resolution in effect at the time the building permit application is made. The fee shall be paid before the building permit is issued. The traffic impact mitigation fee for this project, using the current fee schedule and the preliminary plans is $23,947. The final fee shall be calculated from the final plans using the rate schedule in effect at the time of the building permit application, using a trip generation rate based on the high turnover (sit -down) restaurant use. 31. 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. 32. SIDEWALK REPAIR. The developer shall repair and replace to existing Town standards any sidewalk damaged now or during construction of this project. Sidewalk repair shall match existing color, texture and design, and shall be constructed. per Town Standard Details. The limits of sidewalk repair will be determined by the Engineering Construction Inspector during the construction phase of the project. 33. CURB AND GUTTER. The developer shall repair and replace to existing Town standards any curb and gutter damaged now or during construction of this project. New curb and gutter shall be constructed per Town Standard Details. The limits of curb and gutter repair will be determined by the Engineering Construction Inspector during the construction phase of the project. 34. FENCING. Any fencing proposed within 200 -feet of an intersection shall comply with Town Code Section §23.10.080. 35. SANITARY SEWER LATERAL. Sanitary sewer laterals are televised by West Valley Sanitation District and approved by the Town of Los Gatos before they are used or reused. Install a sanitary sewer lateral clean -out at the property line. 36. SANITARY SEWER BACKWATER VALVE. Drainage piping serving fixtures which have flood level rims less than twelve (12) inches (304.8 mm) above the elevation of the next upstream manhole and /or flushing inlet cover at the public or private sewer system serving such drainage piping shall be protected from backflow of sewage by installing an approved type backwater valve. Fixtures above such elevation shall not discharge through the backwater valve, unless first approved by the Administrative (Sec. 6.50.025). The Town shall not incur any liability or responsibility for damage resulting from a sewer overflow where the property owner or other person has failed to install a backwater valve, as defined section 103(e) of the Uniform Plumbing Code adopted by section 6.50.010 of the Town Code and maintain such device in a functional operating condition. Evidence of West Valley Sanitation District's decision on whether a backwater device is needed shall be provided prior to issuance of a building permit. 37. OUTDOOR TRASH ENCLOSURES. Outdoor trash enclosures shall be covered and area drains connected to the sanitary sewer system shall be provided. Temporary trash enclosures are exempt from this.condition. 38. GREASE TRAPS. Meet all requirements of the Santa Clara County Health Department and West Valley Sanitation District for the interception, separation or pretreatment of effluent. 39. CONSTRUCTION NOISE. Between the hours of 8:00 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. 40. GOOD HOUSEKEEPING. Good housekeeping practices shall be observed at all times during the course of construction. Superintendence of construction shall be diligently performed by a person or persons authorized to do so at all times during working hours. The storing of goods and /or materials on the sidewalk and /or the street will not be allowed unless a special permit is issued by the Engineering Division. 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. 41. PERMIT ISSUANCE. Permits for each phase; reclamation, landscape, and grading, shall be issued simultaneously. 42. COVERED TRUCKS. All trucks transporting materials to and from the site shall be covered. TO THE SATISFACTION OF THE POLICE CHIEF: 43. UNIFORMED SECURITY. Uniformed privately provided security guards may be required in or around the premises as directed by the Chief of Police. 44. PARKING LOT SECURITY. The applicant must provide security in the parking lot independently or in conjunction with other local businesses to the satisfaction of the Chief of Police and provide video surveillance of Parking Lot #6 and other video surveillance consistent with the requirements of Conditions # 23 and #53. 45. SECURITY RESPONSIBILITY. The establishment's (Los Gatos Bar & Grill) security personnel shall extend their responsibilities for crowd management and security to the exterior areas of the bar, rear stairwell, front stairwell and sidewalk and rear parking lot during hours of operation and through the departure of patrons. The establishment's (Los Gatos Bar & Grill) security shall actively interface with uniformed security in the rear parking lot to maintain an orderly condition and to prevent congregation, consumption of alcohol and disturbances during business hours and after closing until patrons have departed. 46. CONSULTATION AND TRAINING. The operator shall provide ABC LEAD training for all employees on a yearly basis. Training which qualifies the employee for certification for up to two years will be acceptable. Six months from the date of this approval, or at the discretion of the Chief of Police, the operator shall hold a meeting with representatives from the Alcoholic Beverage Control or the Los Gatos Police Department for the purpose of employee training on licensed service of alcoholic beverages to the public. If it is determined that there are problems connected with the service of alcoholic beverages, they must be resolved in a time frame acceptable to the Police Chief. 47. 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. 48. DESIGNATED DRIVER PROGRAM. The restaurant operator shall have and actively promote a designated driver program such as complimentary non - alcoholic beverages for designated drivers. 49. POSTING OF TAXICAB TELEPHONE NUMBERS. Taxicab telephone numbers shall be posted in a visible location. 50. LIVE ENTERTAINMENT. Approval to allow DJs and live bands may be suspended, modified, and /or revoked by the Chief of Police or the Director of Community Development Department if the DJs or live bands become detrimental to the public health, safety, or welfare, as determined by the Chief of Police or the Director of Community Development Department. 51, EXITING. The operator shall ensure there is staggered exiting of clientele to prevent exiting of patrons from 15 %2 and 15 N. Santa Cruz Avenue at the same time. The operator shall create an ingress /egress plan subject to the satisfaction of the Chief of Police, which limits the impact of patron exit. The ingress /egress plan shall be approved prior to commencement of use or final building occupancy, whichever comes first. 52. OCCUPANCY LIMITS. The establishment shall comply with the occupancy limits established in this CUP (Condition #8) at all time through active clientele management practices. The operator /owner must maintain the ability, on demand by police, to demonstrate an accurate occupancy load. 53. VIDEO SURVEILLANCE. The operator /owner shall install, and provide continued maintenance to ensure proper operation, of video surveillance equipment to an appropriate high industry standard at all entrances and exits and open areas of the business including Parking Lot# 6, to allow for the identification of persons in all lighting conditions. The operator /owner shall retain video surveillance for 14 days. The operator /owner shall maintain the ability to view video surveillance on -site, and the ability to submit video surveillance to police in digital format upon request within 24 hours. The equipment, placement and overall effectiveness of the system shall be subject to the review and approval of the Chief of Police. 54, PROTOCOLS FOR INTOXICATED PERSONS AND FAKE INDENTIFICATION. The operator /owner shall develop and implement practices /protocols to identify and turn away intoxicated persons prior to entry. The operator /owner shall develop and implement practices /protocols to identify and track patrons utilizing false identification and to refer those individuals to police. 55. NUMBER OF SECURITY. The establishment shall maintain a minimum of 12 security personnel during peak occupancy load. The minimum number of security personnel may change if so required and approved by the Chief of Police. 56. SAFETY AND SECURITY. The Chief of Police maintains the authority to modify the safety and security measures and conditions to address any impacts that result from, or is associated with, the establishment. N: \DEV \C0NDITNS \2010 \NSC 15.5.doc