Attachment 01TOWN OF LOS GATOS ITEM NO: 5
PLANNING COMMISSION STAFF REPORT
Meeting Date: September 14, 2016
PREPARED BY:
APPLICATION NO:
LOCATION:
APPLICANT/
CONT ACT PERSON:
PROPERTY OWNER:
APPLICATION
SUMMARY:
RECOMMENDATION:
PROJECT DATA:
North
East
South
West
CEQA:
Sall y Zarnowitz
szarnowi tz@l osgatosca. gov
Conditional Use Permit App lication U-16-005
14 0 S. Santa Cruz Avenue (West side of S. Santa Cruz Avenue
northerly of Wood Road)
LG Hotel LLC D.B.A. Toll Hou se
Mich ael Mohr-Coo MetWest Properties, LLC
Requesting a modification to an existing Conditional Use Permit
to a llow entertainment before 10:00 p.m. on property zoned
C-2:PD. APNs 510-45-064 and -065.
DEEMED COMPLETE: August 19, 2016
FINAL DATE TO TAKE ACTION: February 19, 20 17
Forward a recommendation to Town Council for approval of the
modification to the Conditional Use Permit.
General Plan Designation: Central Business District
Zoning Designation: Planned Development, C-2:PD
Applicab le P lans & Standards: General Plan
Parcel Sizes: 1.8 acres
Surrounding Area:
Existing Land Use General Plan Zoning
Commercial Central Business District and C-2 and
Medium Density Residential R-lD:LHP
Commercial Central Business District C-2
Commercial Central Business District C-2
Residential Medium Density Residential R:PD and
R-lD:LHP
The project is Categorically Exempt pursuant to the adopted
Guidelines for the Imp l ementation of the California Quality Act,
Section 15301: Existing Facilities . No significant effect on the
environment will occur si nce the project uses an existing
structure with no increase in floor area .
ATTACHMENT 1
Planning Commission Staff Report -Page 2
140 S. Santa Cru z Avenue/U-16-005
September 14 , 2016
FINDINGS :
ACTION :
EXHIBITS:
BACKGROUND:
• As required, pursuant to the adopted Guidelines for the
Implementation of the California Environmental Quality Act,
this project is Categorically Exempt, Section 15301: Existing
Facilities.
• As required by Section 29.20.190 of the Town Code for
Conditional Use Permit modification.
Forward a recommendation regarding Conditional Use Permit
application U-16-005 to the Town Council.
1. Location Map
2. Findings (one page)
3 . Recommended Conditions of Approval (one page)
4. Existing Conditions of Approval (two , pages)
5 . Project Description and Letter of Justification, received June
30, 2016 (two pages)
6. Plans and photos, received June 30, 2016 (seven sheets)
7 . Policy Number 1-03 Regulating Late Night Entertainment,
dated June 22, 2016 and Council Agenda Report, dated
June 13 , 2016 (seven pages)
8. Public comment received by 11 :00 a.m., Thursday,
September 8, 2016
The applicant is requesting a modification to the existing Conditional Use Permit (CUP) for the
restaurant (Verge) at the hotel (Toll House) (Exhibit 4). The restaurant includes outdoor dining
until 10 :00 p.m. on the patio, overlooking the hotel 's central outdoor courtyard. The applicant is
requesting the following:
• Removal of the condition in the existing CUP , which prohibits music, entertainment, or
amplified sound on the courtyard; and
• Addition of a condition stating that entertainment before 10 :00 p.m. in conformance with
the Town Policy Regulating Late Night Entertainment is allowed.
Late Night Entertainment Policy
At a series of Study Sessions in late 2015, the Council received public testimony regarding
alcohol beverage service and entertainment, directed staff to explore and bring back a variety of
economic vitality and business related topics including a framework for an ordinance or
operational permit for alcohol and entertainment.
Planning Commission Staff Report -Page 3
140 S. Santa Cruz Avenue/U-16-005
September 14, 2016
The Policy Committee reviewed the work completed over the last several years for alcohol and
entertainment, noting that the complexity that continues to arise during these discussion s is due
to the difference between issues associated with alcoholic beverage consumption versus those
regarding entertainment. As a result , the Policy Committee recommended that the two topics be
separated and that the Council consider only a policy on entertainment.
In June of 2016, the Town Council adopted, at the recommendation of the Policy Committee, a
Late Night Entertainment Policy allowing entertainment complying with the currently adopted
noise ordinance by right before 10:00 p.m., and allowance for late night entertainment after
10:00 p.m. with the approval of a separate Late Night Entertainment pennit. This action is
consistent with the Town Council's adopted Strategic Priority to strengthen the Town 's
economic vitality and provide businesses with greater opportunity for customer attraction and
retention.
Those establishments with existing CUPs that do not have conditions specifically allowing
entertainment fall into three categories : those with a CUP that is silent on entertainment; those
with a CUP that states they mu st comply with the Town's provisions on entertainment; and those
with a CUP that denies the ability to have entertainment and/or amp li fied sound. For the first
two categories of CUPs, the businesses are able to observe the new regulations with the adoption
of the proposed policy. Businesses that are not allowed to have live entertainment and/or
amplified sound , such as the subject restaurant, are required to submit applications for
modification to their existing CUPs.
The Policy specifically states that an app li cation to amend an existing CUP for the express
purpose of adding permitted entertainment will not open the remainder of the CUP to
.amendment or alteration unless specifically requested by the applicant. In this case, the applicant
is not requesting any amendment beyond removal of the condition prohibiting entertainment on
the courtyard and addition of a condition all owing entertainment before 10:00 p.m. in
conformance with the Town Policy Regulating Late Night Entertainment.
PROJECT DESCRIPTION :
A. Location and Surrounding Neighborhood
The project is located at 140 S. Santa Cruz A venue, on the west side of S. Santa Cruz
A venue, one lot north of Wood Road. Residential and commercial uses border the property
to the north; and commercial uses border the property to the south, east , and west.
B. Conditional Use Permit
The restaurant is open seven days a week, with outdoor dining allowed until 10:00 p.m .
consistent with the existing CUP (Exhibit 4). The applicant provided a letter of justification
describing the proposal which includes music at reasonab le volume (Exhibit 5), and is
Planning Commission Staff Report -Page 4
140 S. Santa Cruz A venue/U -16-005
September 14, 2016
requesting modifications to the existing CUP in the form of removal of a condition
prohibiting music, entertainment, or amplified sound on the courtyard. The following
represents the proposed modifications:
Existing Condition of Approval
No music, entertainment or amplified sound shall be allowed in the courtyard.
Proposed Condition of Approval
Entertainment before 10:00 p.m. in conformance with the Town Policy Regulating
Late Night Entertainment is allowed.
C . Zoning Compliance
The existing restaurant is allowed in the existing zo ning district , in conformance with the
conditions of th e existing Conditional Use Permit.
ANALYSIS:
A. Conditional Use Permit Findings
In order to grant approval of a modification to an existing CUP, the deciding body must
make the following findings:
(I) The proposed u se of the property is essential or desirable to the public conv enience or
welfare; and
(2) The proposed use would not impair the integrity and character of the zone; and
(3) The proposed use would not be detrimental to public health, safety or general wel fare;
and
(4) The proposed use of the property is in harmony with the various elements or
objectives of the General Plan and the purposes of the Town Code.
In regards to the first finding, the proposed modification is desirable to public convenience
because it allows entertainment before I 0 :00 p.m. for the restaurant patrons. As required
by finding two, the proposed modification would not impair the integrity of the zone,
because the proposed use is a commercial use and is located in a commercial zone. In
regard s to the third findin g, the modification would not be detrimental to public health,
safety or general welfare, in that the modification would comply with the Town's
Entertainment Policy which allows entertainment that complies with the currently adopted
noise ordinance by right before I 0:00 p.m. In regards to the final finding , the proposed u se
is in harmony with the General Plan, and Town Code.
Planning Commission Staff Report -Page 5
140 S. Santa Cruz Avenue/U-16-005
September 14, 2016
B. General Plan
The goals and policies of the 2020 General Plan applicable to this project include, but are
not limited to :
• Policy LU-9.2 -Maintain a variety of commercial uses, including a strong Downtown
commercial area combined with Los Gatos Boulevard and strong neighborhood
commercial centers to meet the shopping needs of residents and preserve the small-
town atmosphere.
• Policy LU-9.6 -Encourage development that maintains and expands resident-oriented
services and/or creates employment opportunities for local residents consistent with
overall land use policies of the Town.
• Goal LU-10 -To preserve Downtown Los Gatos as the historic center of the Town
with goods and services for local residents while maintaining the existing Town
identity, environment, and commercial v itality.
C. Environmental Review
The project is Cat egorically Exempt pursuant to the adopted Guidelines for the
Implementation of California Environmental Quality Act, Section 15301: Existing
Facilities. No significant effect on the environment will occur since the project uses an
existing structure with no increase in floor area.
PUBLIC COMMENTS:
Public comment received prior to 11 :00 a.m. on September 8, 2016 is included in Exhibit 8.
CONCLUSION AND RECOMMENDATION:
A. Conclusion
The Town Council adopted the Town Policy Regulating Late Night Entertainment in 2016
which allows entertainment b y right before 10:00 p.m. and the applicant's request is
consistent with the adopted policy.
B. Recommendation
Based on the analysis above, staff recommends approval of the requested modification to
the existing CUP application. If the Planning Commission finds merit with the proposed
modification, it should take the following actions to recommend approval of CUP
application U-16-005 to the Town Co uncil.
Planning Commission Staff Report -Page 6
140 S. Santa Cruz Avenue/U-16-005
September 14, 2016
1. Find that the proposed project is categorically exempt, pursuant to Section 15301 of
the California Environmental Quality Act as adopted by the Town (Exhibit 2); and
2. Make the required findings as required by Section 29 .20.190 of the Town Code for
granting approval of a CUP (Exhibit 2); and
3. Recommend approval of CUP application U-16-005 to the Town Council with the
conditions contained in Exhibit 3 and the plans contained in Exhibit 6.
ALTERNATIVES:
If the Commission has concerns with the propos ed modificati on, it can:
1. Recommend that the Town Council approve the application with additional and/or modified
conditions of approval; or
2. Recommend that the Town Council deny the application; or
3. Continue the application to a date certain with direction.
~{;
Prepared by:
Sally Zarnowitz, AIA
Planning Manager
JP:SZ:cg
t pproved by:
/Joel Pauls on, AICP
Community Development Director
cc: LG Hotel , LLC , D.B.A. Toll House, 140 S. Santa Cruz Avenue, Los Gatos, CA 95030
Michael Mohr -Coo Met West Properties, LLC, 11100 Santa Monica Blvd., Ste. 1700, Los
Angeles, CA 90025
N:\DEV\PC REPORTS\20 16\SS C 140.d ocx
140 S. Santa Cruz Avenue
0 0.25 •••••••••c::::=======:::::JMiles 0 .125
E)(HISJ\f 1
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PLANNING COMMISSION -September 14, 20 16
R EQU IRED FINDINGS FOR MODIFICATIONS TO CONDITIONAL USE PERMIT:
140 S. Santa Cruz Avenue
Conditional Use Permit Application U-16-005
Requesting a modification to an existing Conditional Use Permit to allow entertainment
before 10:00 p.m. on property zoned C-2:PD. APNs 510-45-064 and -065.
PROPERTY OWNER: Michael Mohr -Coo MetWest Properties, LLC
APPLICANT: LG Hotel LLC D.B.A. Toll House
FINDINGS:
Required finding for CEQA:
• The project is Categorically Exempt pursuant to the adopted Guidelines for the
Implementation of the California Environmental Quality Act, Section 15301: Existing
Facilities.
Required findings for a Conditional Use Permit:
• 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 ev idence submitted at the hearing, may grant a
conditional use permit when speci fically authorized by the provisions of the Town Code if it
finds that:
( 1) The proposed use of the property is essential or desirable to the public convenience or
welfare because it allows entertainment before 10 :0 0 p .m . for the restaurant patrons; and
(2) The proposed use will not impair the integrity and character of the zone because it is a
commercial use and is located in a commercial zo ne; and
(3) T he proposed use would not be detrimental to public health, safety, or general welfare, in
that it would comply with the Town 's Late Night Entertainment Policy which allows
entertainment that complies with the currently adopted noise ordinance by right before
l 0:00 p.m.; and
(4) The proposed use of the property is in harmony with the various elements or objectives of
the General Plan and Town Code.
N :\DEV\FI DINGS\2 0 16\SSC 14 0 CUP.DOCX
EXHl9m' 2
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PLANNING COMMISSION -September 14, 2016
DRAFT MODIFIED CONDITIONS OF APPROVAL:
140 S. Santa Cruz Avenue
Conditional Use Permit Application U-16-005
Requesting a modification to an existing Conditional Use Permit to allow entertainment
before 10:00 p.m. on property zoned C-2:PD. APNs 510-45-064 and -065.
PROPERTY OWNER: Michael Mohr -Coo MetWest Properties, LLC
APPLICANT: LG Hotel LLC D.B.A. Toll House
l. ALCOHOLIC BEVERAGES: 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 with
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 . TOT AL SEATING. Total seating shall not exceed 130.
3. OUTDOOR SEATING. Outdoor seating shall not exceed 36.
4 . ALCOHOLIC BEVERAGES. Alcoholic beverages may be served.
5. OUTDOOR SEATING USE. The outdoor seating shall not be used for banquet,
reception or conference purposes.
6. OUTDOOR MEAL SERVICE HOURS. Meal service outdoors shall be limited from
7:00 a.m. to 10:00 p.m.
7. ENTERTAINMENT. No music, entertainment or amplified sound shall be allowed in the
courtyard.
7. ENTERTAINMENT. Entertainment before 10:00 p.m. in conformance with the Town
Policy Regulating Late Night Entertainment is allowed.
N :\DEV \C ON DITIONS\S. Santa Cru z 140_C UP M od.DOC
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On February 22, 1994 the Los Gatos Town Counc1l aaopteil 'the Alcofuihc,Bevera e:Pohc 1aJJil "'< ··"
an ordinance requiri11g alt restill.~a~i's and bi rj't"9 b ~.1~_co:UpJ\rri~t~!E~~.rtt"' ,, . .., ;;'.'. ..
Alcoholic Beverage Policy . ln '"aCidit ion ·10 ihe 'eiiisiiifa clt~Qjti ~~j;)he;~O'n'ditto ",., "''"""
effecrive on Febniaiy 22, ! 99S .
This permit issued to The Toll House Hotel Restaurant at 140 S. Santa Crut Avenue allows
operatio n of your establishment subject to the follow ing cond1ions : · ·
t. So long as this establlshment serves alcoholi c beve~nges ii. shall be s11bj~t to the
rollowing:, . .
n.
b.
c.
d.
~ UniC'ormeii prlvaccly provided security _gun'ids ·may'1tie re'ijufred ·in or • · .. ' '.-. ~·· ·. ' ; ~: • •.' ,;::e'•:t.. .•. ·JP.':'-'-'.' .... y ...... ~_,, •:\'"''::.<.:ti'·• •ol';·<:>l';io'"" ~ .... aroui:?.~.~.~.p~J~J~.e~.,~Y i~~e.~~~J.ft~~!),~~)!,~.L~~~!;{~!!!S4.:~r,oblems
recur thot are not resolved by tile 11.c!!~~~g ;H~T'tr· ·? 'r
{ ... :::~;.:~~;:-~ ~.
At the discretiOn of the Chief of
conducted ::;ith·:;;p~~~~tati~~~·
going.~mpJ~y~e trninlrig an 3lcoho IC'
public. · '
; • .. :· i ••••• ; .... l ; .
This establishment shal\luse 11n employee.training manual .that
. adilresse ~ ~icnholic 'b~~hage ~e'i::i~e 1fo~'lii'te'fu":m;Jh'e~ia"ri~'~tds or
the California Rest11urant ·Associ11tio _n. ·
The liceas'ed operator sh11IHiave und sh11JI OftJ.~ejy_prg'ffi!f.t~.!l
designated driver program such as complimeiii iny noii~atcohollc
bevem ges for designnled drivers. ·
e. Taxknb telephone numbers shall be posted in a visible locat ion.
2. Total seating shall not exceed 110.
3. Outdcor seating shall not exceed 36.
4. Alcoholic beverages may be served.
EXKIBR' 4
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TOLL HOUSE
6/30/16
Ladie s and Gentlemen of the Town Council and Planning Commission,
RECEIVED
SEP - 8 2016
TO'l.fN OF LOS GATOS
PLANf ~ING DI'JlS:ON
I am writing you today to ask for a modification to our Conditional Use Permit for the Restaurant at the
Toll House Hotel. As I understand it, this process was .started under previous ownership, but then
abandoned before ratified at the decision of the property owner at the time. LG Hotel LLC, d. b. a. Toll
House Hotel has owned the property since early 2012, and I have been the Hotel Manager here since
June of 2014.
Prior to 2012, The Toll House hosted 15-20 weddings on site. Post 2012, our number has dwindled to 5 -
7 per year. Most, if not all of the wedding and social event inquiries we receive request light
background music, a harpist during a ceremony, or reception for example . Toll House would like to be
able to honor these requests, rather than lose the business to competing venues . Music and amplified
sound are necessary when giving graduation speeches, wedding introductions and toasts, addresses at
corporate retreats, etc. In addition, music adds a life and vibrancy to a Sunday Brunch or Happy Hour.
We are committed to the continued revitalization of the Toll House. Our restaurant, Verge, has recently
unde rgone an expansive floor to ceiling renovation, and our courtyard received a full makeover earlier
this year. The attached photos depict many of our upgrades and redesigned cou rtyard features such as
living plant walls, renovated fountain, sun shades and curtains. Many of these elements w e re added to
offer additional sound dampening and soft surfaces for noise absorption.
Verge, the restaurant at the Toll House, serves breakfast and dinner 7 days a week, with dinner service
ending at 10pm nightly. Our outdoor dining and se rvice never extends beyond lOp, thus any outdoor
entertainment would not extend beyond that hour. Currently Verge has 90 seats inside. In addition we
have 16 seats (four tables) on our upper patio used for a Ia carte restaurant seating only. Total seating
for the restaurant is currently 106. The square footage of the restaurant patio does not allow for more
than 20 diners.
Our singular goal is to do our best for every guest every day, delivering on a promise of a warm and
welcoming environment for our guests to enjoy. Becau se of this goal, and who we are as a company,
any entertainment that is provided will be of good taste, at a reasonable volume, and will be added to
enhance the overall customer experience.
Toll House would like to be able to further cater to our guests who are already utilizing our outdoor
space . We would like to provide another reason for our corporate guests to stay and have dinner with
lollhou seholel.com
140 Soulh Sa nla Cruz Avenue I Los Galos, California 95030 1 T 408.395.7070 1 F 408.395.3730
~
TOLL HOUSE
us, or our social guest to book rooms with us. In addition to our physical neighbors, with 115 guest
rooms adjacent to our outdoor space, we have 115 potential"neighbors" that stay with us every night.
We wish to provide something that is complimentary to the environment we have created, not detract
from it.
We are asking that we are able to compete on a level playing field with the other businesses in town.
On June 21st, Los Gatos Town Council adopted an entertainment policy that allowed businesses in Los
Gatos to have live music and amplified sound until 10pm, and the ability to request a modification of
any condition within their permit prohibiting entertainment. This is a desirable use of our property and
certainly will not impair the integrity and character of the zone. Our location, at the end of S. Santa
Cruz Ave. is in the Core Downtown/Central Business District which attracts visitors and residents ~)ike to
enjoy shopping, dining, entertainment, and all of the wonderful things that Los Gatos is known for.'
We request that our current condition related to entertainment be modified to allow entertainment in
our courtyard.
In closing, this CUP was most recently modified in early 1994, a different time in Town, with different
owners of the hotel. As we look to stay relevant and solvent as a property and as small part of the
community that we love to serve, the ability to offer entertainment options to our guests is paramount .
We look forward to an affirmative reply as soon as possible. Thank you in advance for your
consideration.
With Hospitality,
~c_~
Jason C. Bogan
lollhousebolel.com
140 South Santa Cruz Avenue I Los Gato s, Cali fornia 95030 1 T 408.395.7070 1 F 408.395.3730
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Title: Policy Regulating Late Night Entertainment
Effective Date: 6/22/16
Enabling Actions: Revised Date:
(
' Apprn.ved: ., .
. ___ /"------;---~~~""=--t~
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PUR:e._OSE
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Entertainment contributes t o Los Gatos' v ib rancy and adds to the richness of events a nd
g athering s. and shall not be regul a ted other than b y Town Code. However, entenai nm ent
occurring after 10 p .rn . ( .. late night entertainmen t'") can compromise the quality of li fe for Town
r esiden ts . T herefore, this pol icy has been created t o establish a permitting process a nd
regulati ons for late night entertainm e nt.
For the purposes of this policy, e ntertainment means any acti v ity conducted for t h e primary
purpose of diverti ng or ente11aining persons in a premises o p e n to the ge neral public . Such
entertainment may i nclude, but shall no t be limited to, liYe musica l performances, i nstrumental
or voca l, danc e acts, concerts, live s hows. amplified music or so und, danc in g, DJ , karaoke, jam
sessions, and/or other s imilar activities.
Late ni ght e ntertainment is a discretionary privil ege and is n ot to be construed to be a right of
deve lopment nor run with the land. T he follow ing provisions a re inte nded to maintain and
enhance the continuing vibrancy and viability of the Town's public and comm ercial center s while
providing reaso nable protecti o ns to residential neighborhoods .in close proximity to those areas.
PO LICY AND PROCEDURES
J. Review Processes for E sta blishm ents with L ate Night Entertainment
I. A late n ight entertainment permit shall be issued be t he Town Manager. The Town
Manager may refer any appl ication for a permit to the Developm ent Review Committee
for its consideration and determinat io n. which may be appealed to Planning Commission
and To wn Council. The Town Manager or o ther deciding body retains the right of
approval or denial of each application based o n its merits .
2. In determining whether to approve or deny an a ppl ic ation for a late ni g ht ente1tainmcnt
permit the following factors will be considered:
a . The proposed use of the property is essential or desirable to th e public
convenience or welfare;
b. The proposed u se will not impair the integrity and character of the zone;
EXHIB!flf 7.
Title: Policy Regulating Late Night Entertainment
1
Page: Policy Number:
of 2 , 1-03
____ ! ________ _
c. The proposed use would not be detrimental to public he alt h, safoty or
general welfare: and
d. The prop os~d use of the property 1s m ha nnony w ith the applicHble
guidelines. zo ning ordinances. and/or provis io ns of the genera l plan.
3. An application and pennit for late night entertainment s hall be s ubj ec t to all
applicable requirements of the Town Code. and any pe nnit issued pursuant to thi s
policy shall include the following conditions:
a. The applicant shall be responsible for ensuring that noise resulting rrom
the entertainment meets all applicable provisio ns of the Town· s noise
ordinance. If noise complaints a re received by Town Stafl: the T own
reserves the right to require the applicant/permittee to hire a consultant to
monitor noise levels to ensure that noise level s are within the paramete rs
established by Town Code for the zone in which entertainment is
occurnng.
b. Security m easures, which may include the requirement that the applicant
employ private security personnel. shall be unde11 aken and establ ished in
and around the ente11ainment venue to deter unl awful conduct or
disturbance to adjacent residential neighborhoods.
c. Additional appropriate conditions ma y be included in any permit as may
be detennined necessary to protect the publ ic health, satety or general
welfare.
4. Any venue with a Conditional Use Permit (CUP) that ex pressly prohibits entertainment
will be required to obtain an amendment to its CUP in order to offer entertainment
pursuant to this policy. An applicant's request to amend an existing CUP for the express
purpose of adding permitted entenainment will not open the remainder of the CUP to
amendment or alteration unless specifically requested by the applica nt.
5. Any permit issued purs uant to this policy may be s uspended , modified or revoked by the
body that approved the permit following a public hearing if it is determined that suffic ient
evidence exists that the pennitted entertainment is ope rating, or bas operated. in a manner
inc o nsistent with the requirements of its p ennit. or in a manner that constitutes a public
nuisance.
APPROVED AS TO FORM:
·;-·
..Z,_,1,A....,,..~
COUNCIL AGENDA REPORT
DATE: JUNE 13 , 201 6
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETT!, TOWN MANAGER
MEETING DATE: 06/2 1/16
ITEMNO. 19
SUBJECT: DISC US S AND ADOPT THE POLI C Y COMMITTEE'S
RECOMMENDATION FOR AN ENTERTAINMENT POLICY ALLOWING
ENTERTAINM ENT BY RIGHT B EFORE 10:00 P .M. GIVEN COMPLIANCE
WITH THE CURRENTLY ADOPTED NO ISE ORDINANCE IS MET AND
ALLOWANCE FOR LA TE NIGHT ENTERTAINMENT AFTE R l 0:00 P.M .
WITH AN APPROVED PERMIT.
RECOMMENDATION:
D isc u ss and adopt the Po li cy Co mmittee 's recommendation for a n E nt erta inment Policy
allo w ing E ntertainment by ri ght before I 0:00 p .m. give n compliance with the currently adop ted
noise ordinan ce is met and all owance for la te ni ght entertainment after l 0:00 p.m. with an
approved permit.
BACKGROUND:
On October 6, 2015, the Counc il received public testimony at a Study Session regarding alcohol
beverage serv ice and ent ertai nm ent , and continued the item to a Study Session on November 3,
20 15 to di scuss next steps. At that meeting , Town Counci l directed staff to ex plo re and bring
back a vari et y of economic vi t ality and bus iness re lated topics including fr a mewo rk for an
ord in an ce or operational p ermit for alcohol and enterta inm ent.
The Policy Committ ee began to r eview and explore the work that h as been completed o v er th e
las t s everal years for a lcohol and entertainment, noting that the complexi ty tha t co ntinu es to arise
during these di scussions is due to the difference b etween iss ues associated w ith alcoholic
beverage consumption versus tho se regarding entertainment. As a result, the Po li cy Committee
is recomm endin g th at the two topics b e separated and that th e Council co nsider o nly a policy on
entertainment a t this time (Attac hment l ).
PREPARED BY: MON ICA RENN
Economic Vitality Manager
Reviewed b y: __ Assistant Town Manager __ Town Attorney __ Finance
S:\COUNC IL REPO RTS\20 16\06-2 I-I 6\Ente1tainm ent Policy\Sta ff Report -Entertainm ent Po li cy FIN AL.rlocx
PAG E2
MAYOR AND TOWN COUNCIL
SUBJECT : DISCU SS AN D ADOPT THE POLI CY COMMITIEE'S RECOMMEN DATIO N
FOR AN ENTERTAINMENT POLICY
J UNE I 3, 2016
DISCUSSION:
Ente1tainment is often desired by restaurants , cafes, retailers , and other merchants as an
enhancement of the environment for their patrons while within the confines of their locati on.
When responsibly executed, entertainment may provide merchants with the o ppo rtunity t o attract
customers, create a more de sirable experience, build return customer b ase, and market the
product s and services provided. Especially in the setting of downtown o r shop ping centers,
entertainment can provide a draw for c ustomers who then park once a nd patroni ze multiple
merchant locations.
Staff commonly receives request s from merchant s for the ability to provi de entertainment
including poetry readings; open micro phone ni ght s; li ve mus ic for brunch and/or even ing dinner
service; and grand openings or anniversary sa les. T he merchants have requested entertainment
to occ ur during the business es' no rm a l operating ho urs and within the co nfines of their me rchant
locatio n. Given that the se reque sts are not directly associated with alcohol b everage
consumption, staff concurs with the Po licy Committee 's recommendatio n t o se parate ly re g ulate
entertainment and alcohol beverage consumption, and adopt a policy addressing entert ai nment at
thi s time to allow businesses to enhance their operations during the upcoming summer and
subsequent warmer weather months. This action is consistent with the Town Council 's
previous ly adopted Strategic Priotity to stre n gthen the Town's eco no mic vitality and providing
businesses with greater opportunity for cust o mer attraction and retention.
For the purpose of thi s report a nd the pro posed policy, entertainment is defined as fo ll ows:
Entertainment m ea ns any a ctivity c onducted for th e primary purpose of diverting or
e ntertaining persons in a premises op e n to th e general public. Such entertainment
may include, but sha ll not be limited to , live musical performances , instrumental or
vocal, dance a cts, con certs, liv e s hows, amplified music or sound, dancing, DJ,
karaoke, jam sessions, an d/o r ot her s imilar acti vities.
In addition , this proposed policy al so identifies any entertainment occurring after 10:00 p.m.
as late ni g ht entertainment, and describes it as a di sc retionary privil ege a nd is not to be
co n strned to be a right of devel o pment nor run with the land.
The Po licy Committee recommend s that the Town Council to adopt a policy that is simple for
businesses and staff t o implement, monito r, and enforce. In the attached draft poli cy,
ente1ta inment that is in compliance wi th the currentl y ado pted noise ordinance defined in Section
16.20 .25 of the Town Code regulating Commerc ia l and Industrial zones would be a ll owed by
right before l 0 :00 p .m . (Attachment 2). Any establi shme nt intending to have any entertainment
or amplified noise aft er l 0:00 p .m . would be required to obtain an entertainment pe1mit as
outlin ed in Attachment 1.
PAGE3
MAYOR AND TOWN COUNCIL
SUBJECT: DISCUSS AND ADOPT THE POLICY COMMITTEE'S RECOMMENDATION
FOR AN ENTERTAINMENT POLICY
JUNE 13 , 2016
DISCUSSION (Continued):
With the recommended separation of entertainment from late night entertainment, the Policy
Committee discussed how these regulations could be implemented and enforced as they relate to
the following:
Existing Conditional Use Permits (CUPs)
Those establishments with existing CUPs that do not have conditions specifically
allowing entertainment fall into three categories: those with a CUP that is silent on
entertainment; those with a CUP that states they must comply with the Town 's provisions
on ente1tainment; and those with a CUP that denies the ability to have entertainment
and/or amplified sound.
For the first two categories of CUPs, the businesses would be able to observe the new
regulations upon the adoption of the proposed policy. In contrast, the last category, those
with disallowances of live entertainment and/or amplified sound would need to come
through the public process for a CUP modification.
The Council may elect to direct staff to allow such businesses to do one or both of the
following:
• Offer businesses the option to modify their CUPs as a group, which would allow
them to be heard with other businesses, reducing the processing time and cost.
• Offer businesses wishing to modify this condition, the opportunity to have only
the condition pertaining to entertainment and/or amplified sound considered and
not open their entire CUP for review or modification.
The deciding body for the modification would be the same as what was required for the
original CUP approval (i.e., establishments with alcohol would require a Town Council
hearing for consideration and approval of a CUP modification while minor restaurants
may be heard at either the Development Review Committee or Planning Commission
levels).
Late Night Entertainment Permit
When considering a late night entertainment permit for businesses, Section I of the
attached draft policy outlines the review process. The Policy Committee recommends
that the Development Review Committee be the deciding body for late night
ente1tainment permits with appeal rights to the Planning Commission and Town Council.
If it is the desire of the Council, an alternative approving body could be identified such as
PAGE4
MAYOR AND TOWN COUNCIL
SUBJECT: DISCUSS AND ADOPT THE POLICY COMMITTEE'S RECOMMENDATION
FOR AN ENTERTAINMENT POLICY
JUNE 13 , 2016
DISCUSSION (Continued):
the Planning Commission. Fees for tis process would be the same as any application that
is heard at these levels. The DRC application is currently $3,982.23, the Planning
Commission application fee is $6,545 .46
Permit Review and Renewal
The Policy Committee and staff recommend that any late night entertainment permit
ex pire immediately upon the change of ownership and not run with the land as CUPs do.
The Council may also elect to include a mandatory review cycle or renewal period for
each late night entertainment permit is sued. Review and renewal could be processed at a
staff level with Town Manager approval for applications without code compliance
complaints on file.
Enforcement
With both entertainment and late night entertainment, the Code Compliance Divi sion
and/or the Police Department would follow up on concerns and investigate po ssibl e
violations. Multiple founded violations could result in s uspension or revocation of a late
night entertainment permit, and/or review and possible revocation of the establishment's
CUP.
CONCLUS ION/NEXT STEPS:
The Council is asked to di sc uss and adopt the Policy Committee's recommendation fo r an
Entertainment Policy allowing entertainment by right before l 0:00 p.m. given compliance with
the currently adopted noi se ordinance is met, and allowance for late ni ght entertainment after
l 0:00 p.m. with an approved permit.
Should the Town Council choose to adopt the attached draft policy as written, or with
modifications, consideration and direction should also be given on the following:
• The allowance for multiple CUP modifications to be brought forward to the deciding
bodies together, rather than each business being required to file separatel y. Businesses
would still have the option to file separately, and in both instances, provide direction that
businesses may have only the condition pertaining to entertainment reviewed and
modified .
• The review and renewal periods for late night entertainment permits including the
deciding body for initial approval and review /renewal cycles.
PAGES
MAYOR AND TOWN COUNCIL
SUBJECT: DISCUSS AND ADOPT THE POLICY COMMITTEE'S RECOMMENDATION
FOR AN ENTERTAINMENT POLICY
JUNE 13 , 2016
COORDINATION:
This report was coordinated with the Town Attorney's and Town Manager's Offices and the
Community Development Department.
ENVIRONMENTAL ASSESSMENT:
The adoption of the proposed policy is not a project under the California Environmental Quality
Act.
Attachments:
I . Draft Entettainrnent Policy
2. Section 16 .20.025 of the Town Code pertaining to noise in Commercial and Industrial
zo nes.
This Page
Intentionally
Left Blank
Sally Zarnowitz
From:
Sent:
To:
Subject:
Sally,
Patti & Tim Perry <Perry@37Broadway.com >
Sunday, September 04, 2016 8:26 AM
Sally Zarnowitz
Toll House Live Entertainment
My wife Patricia and I both support the Toll House request for a modification to their CUP that will allow Live
Entertainment.
We live directly behind the Toll House at 37 Broadway and enjoyed the live entertainment in their courtyard in years
past.
We understand that many of our neighbors are opposed to live music downtown, however we feel that live music helps
make Downtown Los Gatos a place to be happy and have fun.
We wish to see our Downtown businesses thrive and feel this CUP modification will be a benefit for the Toll House and
our Downtown.
We will be away on vacation on 9/14 and therefore unable to attend that hearing.
We hope that our support for Live Entertainment will be noted.
Thank you,
Tim and Patricia Perry
37 Broadway
Los Gatos, CA
1
EXHIBIT 8
Sally Zarnowitz
From:
Sent:
To:
Subject:
MikeV <mikeverga@yahoo.com >
Tuesday, September 06, 2016 3:51 PM
Sally Zarnowitz; BSpector; Marice Sayoc; Marcia Jensen; Steven Leonardis; Rob Rennie
TollHouse
Hi my name is Michael Verga, my wife Gillian and I reside at 46 Broadway Ave Los Gatos.
Back in the summer of 2011, I became aware of the Toll House violating its Conditional Use Permit
by having outdoor music in its cou~yard area . (the noise could be heard all over the neighborhood).
The Toll House was requesting a change to its CUP, to allow outdoor entertainment, and that
summer the town permitted it to hold outdoor live entertainment during the review process.
After literally hundreds of e-mails , numerous trips to city hall , numerous council meetings and
collecting signatures from over 60 neighbors, the town denied a change to the CUP and the Toll
House was required to stop holding outdoor entertainment, consistent with the original CUP.
This was a huge relief to the neighborhood, who had spent an entire-~um mer l_istening tb loud,
distorted noise that drifted over the Toll House back wall, that made conversation difficult and
penetrated even closed windows on houses along Broadway.
Now I find the Tollhouse is once again attempting to change the CUP to bring back the noise.
Frankly , I don't feel ·I should have to fight this fight again. Nothing has changed , the Tollhouse is still
surrounded by residences. The neighbors are still here , we have not left.
The current CUP effective February 22 , 1995 reads very clearly, and i quote:
The outdoor seating shall not be used for banquet, reception, or conference purposes.
No music, entertainment, or amplified sound shall be allowed in the courtyard
Outdoor seati ng shall not exceed 36
The current very specific, and restrictive CUP was put into place specifically to address the fact
that the Tollhouse was surrounded by a neighborhood. The Tollhouse was allowed to build its hotel
and move in only on certain CONDTIONS. That's the whole point of a conditional use permit. They
would not even be there if these very specific conditions were not met.
(I have personal documentation of this as one of our current neighbors, Gail Randolph, was around
when the Tollhouse first attempted to move in to the residential neighborhood .)
Again. nothing has changed . The residential neighborhood is still here.
I urge you to reject this application for change outright!
Thank You
Michael and Gillian Verga
46 Broadway Ave
Los Gatos
1
408 930-2761
FYI
An article in the Patch dated June 25 2011 reads in part :
(you can read the whole article here :
http ://losgatos. patch. com/articles/toll-house-hotel-too-loud ?ncid=M255)
A group of residents who live near the To ll House Hotel in downtown Los Gatos is opposing its plan
to offer live entertainment in its outdoo r courtyard such as weddings and fundraisers .
Hotel representatives appeared before town planners Wednesday evening to seek changes to its so-
called "conditional use permit" to offer such services to its clients.
The Los Gatos Planning Commission continued the Toll House Hotel's application to offer live
entertainment in its outdoor courtyard until Sept. 14. Planners directed hotel representatives to work
and meet with the neighbors to mitigate their concerns and address the noise issue, according to
Planning Manager Sandy Baily.
Residents who live on Broadway, about 350 feet away, are fighting its application saying the noise
generated from the establishment is unbearable. They're also asking town officials to ma ke the hotel
comply with its current permit, which prohibits such entertainment.
On Monday, they expressed their frustration before the Los Gatos Town Council.
Kim Karloff confirmed more than 60 people have signed a petition opposing the hotel's plans . "We're
at our wits' end due to the sound terrorism , drunken persons and litterers we've been subjected to on
Friday nights for the past few years," Karloff said. •
Residents can no longer tolerate the hotel's "exceedingly loud concerts , parties and after-parties ,"
Karloff continued .
And despite the neighbors' many complaints , the hotel "is and has been blatantly violating its
conditional use permit."
The hotel has been operating with a permit granted in 1994, which restricts its use of music in the
courtyard .
2
Sally Zarnowitz
From:
Sent:
To:
Cc:
Subject:
Sally,
Mark Regoli <mregoli@sou thbay.us>
Tuesday, September 06, 2016 4:41 PM
Sally Zarnowitz
Marice Sayoc
Toll House Conditional Use Permit Application U-16-005
As a neighbor of this applicant, I am reaching out to you to support this Conditional Use
Permit.
This outdoor music was a great event that I enjoyed attending and hearing from my
backyard. It was unfortunate that this ended a few years ago because of a vocal effort by a
few people. The hotel provides a great service to our neighborhood and the town, and should
be supported in the effort to return this program to Los Gatos.
I also believe that the majority of the residents support live music, but do not have the time to
attend every planning meeting. Please support this application, despite the fact there will be a
loud faction at the meeting.
Please let me know if there is anyone else I should reach out to in this process.
Sincerely,
Mark
SOUTH BAY -ve .~ r 1 __
MARK REGOLI
·1690 Dell Aver1ue , Campbell . CA, 95008
0 408.796 .0044 l c 408.313 .3587
SOUTHBAY.US
1