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12 Staff Report - 368 Village Lane.~pW N OF S ~ ~QS"~ OS DATE: TO: FROM: SUBJECT: COUNCIL AGENDA REPORT November 22, 2005 MEETING DATE: 12/5/05 ITEM NO. 19, MAYOR AND TOWN COUNCIL DEBRA J. FIGONE, TOWN MANAGER 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. If the 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-81-9`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) PREPARED BY: BUD N. LOR DIRECTOR OF COMMUNITY DEVELOPMENT Reviewed by: Assistant Town Manager Community Development Attorney Clerk Finance Revised: 11/22/05 5:12 pm Reformatted: 5/30102 A Page 2 MAYOR AND TOWN COUNCIL SUBJECT: 368 VILLAGE 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 to approve 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 the proposed 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 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. 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 COUNCIL SUBJECT: 368 VILLAGE 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 Caf6 Marcella, Inc., 368 Village Ln., Los Gatos, CA 95030 BNL:JP:mde N:~DEV\CNCLRPTS\2005~368 Village.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: (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 of the State Environmental Guidelines as adopted by the Town that this project is Categorically Exempt. N:\DEV\FINDINGS\368 Village.wpd Attachment 1 Planning Department 354-6872 CONDITIONAL USE PERMIT U-94- 9 3 On February 22, 1994 the Los Gatos Town Council adopted the Alcoholic Beverage Policy 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 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. 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 10:00 PM. 4. Beer and wine is permitted with meals: Attachment 9 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 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 of beer, 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. 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 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 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. 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 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 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. 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O H C C N W4 -H O N N o 0) a~i n• m O y N F C li H H n. m C 0) U 4 O E ~ ~ C E 1603 W3 m O 3 q O O H A w X a) 'o a, N w x m m ~G O w 'D m m .G v H m rl C - w w a) m C E N m n. ❑ A A •D .C W 0.l U C C a) a) m 0 i+ m H F F m F a m m w E 14 > 04 V O a O x O o m ra ( a I 1 0 0 i a) N W V U D S4 Sa m W W W X )-I H N O .u m O X O rz~ O m N » H N C H w O Y U x E. fL m m m r Ix P4 P4 0 z N 1701 Q D Q m z Y+ z z z a m -14 O a H A O O a O a O O O w 0.0l ro E WW C y F y 'aW m aa1 m m O 7 1, F >1 -ri a W H >-1 W a H a H H H ~ 3 H m D £ £ £ £ C 'k a) ~C ~ -1 y U x O O O O r6 U 1 a) W U U C O C U U U U U U O C) ° m (6 E J O N U m m F E 444 co a ) O 3 G O ate) o C O 7 ~4 71 S C 0 m 0 w C) m u p N m> Oa U C m -H O }a ED a) 14 O CS' m w H O U w rJ m -H m w O G m a m G 0, z rn m m li o o m E A N 14 m U M H ro tAi C ~ ~ m 41 N rr 41 41 ami C 0 ~ -mi E ~ 3 a) 03 ~j U) a) m (D "C m z O E bi } ° A. b z m a) m m m O ate) 3 }Oi W b o v° a m m m m H N w m a) -x La H a) a) to u a) H w m O Dl a1 ON al £ A N d -Ca ) a m O A S-i U o o am u o m C O N a w A E O U m 0 m U m m S4 E .C w 4 m a) w w O w A m m - N N 0 0 \ N \ a) o C za o m H D) co m H co H H U m C7 1D z~ H y M a E a ~ OH c~ 0 a N N N \ N o C H m za O N H ~ O H O ~ U H a E P4 ~ O H (7 O a 'i N rn W Ll b t` O ~ O r-I N N E~ If1 1O r W P O rl N C N H N ri ri N rl N .-1 rl .i N N N N N N Date: October 19, 2005 For Agenda Of: October 26, 2005 Agenda Item: 3 REPORT TO: The Planning Commission FROM: The Development Review Committee LOCATION: 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 27,198 1, Conditional Use Permit Application U-81-9 Attachment 5 The Planning Commission - Page 2 368 Village Lane/U-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 Q. In the fall of 1991 Caf6 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:JP:mdc cc: The Walter B Franck Support Trust, 19050 Skyline Blvd., Los Gatos, CA 95033 Caf6 Marcella, Inc., 368 Village Ln., Los Gatos, CA 95030 N:\DEV\REPORTS\2005\368 Village.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: Caf6 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: (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 TV.B). ■ As required by Section 15301 of the State Environmental Guidelines as adopted by the Town that this project is Categorically Exempt. N:MVT1NDINGS\3 68 Vi11age.wpd POLICY REGULATING THE CONSUrr.LP ON 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 of life for Town residents. This policy provides parameters for alcoholic beverage service, particularly addressing late night service when alcohol related incidents are most likely to occur and when the 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 determined on a case by case basis. The following provisions are intended to balance the protection of residential neighborhoods in close proximity to commercial districts and still maintainthe viability of our commercial centers in which restaurants have an essential role. Hours of operation may be regulated based on an establishment's proximity to residential neighborhoods or schools, the concentration of establishments in an area serving alcoholic beverages or for other reasons that may arise at the public hearing. The deciding body may approve a conditional use permit to serve alcoholic beverages based on the merits of the application and subject to the following requirements: IL - General policy L The Town shall continue to strongly 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. Entertainment in association with an eating or drinking establishment may be allowed if standards and a permit process are adopted. 4. Alcoholic beverage service for new conditional use permit applications or applications for modification of a conditional use permit shall not be allowed: A_ After 11 PM Sunday through Thursday, except for holidays and evenings before holidays. B. After 1. AM Friday, Saturday, holidays or evenings before holidays. An existing establishment with a conditional use permit in good standing allowed to serve alcoholic beverages past the hours stated above may continue to operate under their existing hours of operation. Town of Los Gatos Alcoholic Beverage Policy Page 2 of 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 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 driverprogram such as complimentary 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 l OPM: 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 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. 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. Tawn of Los Gatos Alcoholic Beverage Policy ~ Page 3 of 4 III. Specific Policy 1. Restaurants: . Alcoholic beverages may only be served with meals. 2. Restaurants With Separate Bars: 'Alcoholic beverage service is permitted in the dining area only in conjunction with meal service. Meal service shall be available until closing or 11 PM Sunday through Thursday and until 12 midnight Friday, Saturday, holidays and evening-, before holidays, whichever is earlier, if late night bar service is available. Specific how-, of operation for each establishment. are determined upon issuance of a conditional use permit. N. Review Process 1.. Proposals for new bars or.restaurants with bars and all 'requests for new alcohol service or a change to existing service shat be reviewed by the Planning Commission. 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 ,Iicense, 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. Town of Los 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 will be forwarded to the Planning Commission 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 Commission may revoke or modify the conditional use permit. 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 enforcement action if it is determined that the sale of alcohol has become a nuisance to the Town's public health, safety or welfare. Enforcement of section 29.20.310(b) of the Town Code will be based on, but not limited to, the following factors.. X. The number and types of calls. for service at or near the establishment whreh that are a direct result of patrons actions; II. The number of complaints received from residents ad other citizens concerning the operation of an establishment; III. The number of arrests for alcohol, drug, disturbing the peace, fighting and public nuisance violations associated with an establishment; N. 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_DE VEUL&NYE~ComaMAko6ot Policy1200 alcohol Poky-Wpd A I J ~ri f 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-81-9 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 existing restaurant located at 360-368 Village Lane, subject to the following conditions: 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. acid 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 subject 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 appeaZed to the Town CounciZ within seven (7) days of the date the.approvaZ is. granted. Therefore, this action for approvaZ should not be considered.finaZ, and no permits by the Town will be issued until the appeal period has passed. Very truly yours, LEE E. BOWMAN Planning Director LEB:pd cc: Ms. Sharon Silver Development Review Committee CIVIC CENTER 4 110 EAST MAIN STREET P.O. BOX 949 LOS GATOS, CALIF 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: Caf6 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 of beer, 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 of beer, 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 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 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. 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 3 6 8 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 TUBLIC 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 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. N:\DEV\CONDITNS\2005\368 Village.wpd Letter of Justification Cafe Marcella, Inc. 368 Village Lane` Los Gatos, CA 95030 408390-0901 RECEIVED AU G . 1 2005 TOWN OF LOS GATOS PLANNING DIVISION This letter of justification pertains to our request for a change in the Use Permit for Cafe Marcella to allow the service of liquor on the premises. Introduction Cafd Marcella began in the fall of 1991 as a small start up with expectations of becoming 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 finding it increasingly difficult to compete successfully with other licensed restaurants who hold on-premise 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 liquor. consumption, as an aperitif or cocktail, has increased significantly. As a result, 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 writing this letter of justification 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 of Los Gatos. The liquor selection. will be a simple one with only a few selections that represent the quality of the restaurant and will require no additional storage space in the bar area. Environmental Concerns As there will be no changes to the existing facility there will be no impact on the environment. We will have no additional drains affecting the plumbing or any changes in the electrical configuration which would affect the existing wiring- Exhibit E Cafd Marcella Restaurant On Primise Beer and Wine License 41-265963 ! Dining Room 37' 22' ! ! i lEchen 16' 4ti Dining Room Exhibit F Date: October 26, 2005 For Agenda Of: October 26, 2005 Agenda Item: 3 DESK ITEM REPORT TO: The Planning Commission FROM: The Development Review Committee LOCATION: 368 Villa eg 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 (Caf6 Marcella) on property zoned C-2. APN 529-04-053. PROPERTY OWNER: The Walter B. Franck Support Trust APPLICANT: Cafe Marcella, Inc. EXHIBITS: A-F. Previously Submitted G. Complete copy of Letter of Justification (2 Pages) A. REMARKS: 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\368Vi11ageDesk.wpd Attachment 6 Letter of Justification Cafe Marcella, Inc. 368 Village Lane Los Gatos, CA 95030 408,590=0901 RECEIVED AUG. 1 2005 TOWN OF LOS GATOS PLANNING DIVISION This letter of justification pertains to our request for a change in the Use Permit for Cafe Marcella to allow the service of liquor on the premises. Introduction Cafe Marcella began in the fall of 1991 as a small start up with expectations of becoming 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 finding it increasingly difficult to compete successfully with other licensed restaurants who hold on premise beer, wine, and spirit licenses. When we first opened we believed that beverage consumption trends justified having only an can premise beer and wine license. However, those trends have changed radically, and liquor.consumption, as an aperitif or cocktail, has increased significantly. As a result, 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 writing this letter of justification 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 of Los Gatos. The liquor selection will be a simple one with only a few selections that represent the quality of the restaurant and will require no additional storage space in the bar area. Environmental Concerns As there will be no changes to the existing facility there will be no impact.on the environment. We will have no additional drains affecting the plumbing or any changes in the electrical configuration which would affect the existing wiring. Fxliibi.t G Hazardous Materials and ;Air (duality 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 mare the changes; we see no reason why the Town of Los Gatos would decline to grant us this change. The granting of this 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 establishment where they can order cocktails and spirits. If we are to continue to succeed in this highly competitive .market as 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 tip. POLICY REGULATING THE CONSUMPTION 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 of life for Town residents. This policy provides parameters for alcoholic beverage service, particularly, addressing late night service when alcohol related incidents are most likely to occur and when the 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 determined on a case by case basis. The following provisions are intended to balance the protection of residential neighborhoods in close proximity to commercial districts and still maintainthe viability of our commercial centers in which restaurants have an essential role. Hours of operation may be regulated based on an establishment's proximity to residential neighborhoods or schools, the concentration of establishments in an area serving alcoholic beverages or for other reasons that may arise at the public hearing. The. deciding body may approve a conditional use permit to serve alcoholic beverages based 'on the merits of the application and subject to the following requirements: IL 'General policy 1. The Townshall continue to strongly 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. Entertainment in association with an eating or drinking establishment may be allowed if standards and a permit process are adopted. 4. Alcoholicbeverage service for new conditional use permit applications or applications for modification of a conditional use permit shall not be allowed: A_ After 11 PM Sunday through Thursday, except for holidays and evenings . before holidays. B. After 1 AM Friday, Saturday, holidays or evenings before holidays, An existing establishment with a conditional use permit in good standing allowed to serve alcoholic beverages past the hours stated above may continue to operate under their existing hours of operation. Attachment 7 Town of Los Gatos Alcoholic Beverage Policy Page 2 of 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 of Police if alcohol related problems recur that are not resolved by the licensers 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 driverprogram such as complimentary 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 IOPM; 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 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. Tarwn of Los Gatos Alcoholic Beverage Policy Page 3 of 4 IIL Specific Policy 1. Restaurants: Alcoholic beverages may only be served with meals. 2.. Restaurants With Separate'Bars: -Alcoholic beverage service is permitted in the dining area only in conjunction with meal service, Meal service shall be available until closing or 11 P-M Sunday through Thursday and until 12 midnight Friday, Saturday, holidays and evenings before holidays, whichever is earlier, if late night bar service is available. Specific houi- s of operation for each establishment.are determiners upon issuance of a conditional use permit. N. Review Process l.. Proposals for new bars or .restaurants with. bars and all requests for new alcohol service or a change to existing service shall be reviewed by the Planning Commission. 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 is 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 pen-nit. Town of Los Gatos AIco,Solic Be veT age 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 will be forwarded to the Alarming Commission 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 Commission may revoke or modify the conditional use permit 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 authorising the Town Manager to take enforcement action if it is determined that the sale of alcohol has become a nuisance to the Town's public health, safety or welfare. Enforcement of section 29.20.310(b) of the Town Code will be based on, but not limited to, the following factors: I. The number and types of calls. for service at or near the establishment }z that are a direct result of patrons actions; II, The number of complaints received from residents ad other citizens concerning the operation of an establishment;' M. The number of arrests for alcohol, drug, disturbing the peace, fighting and public nuisance violations associated with an establishment; 1V. 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 BeveragePodcy 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. NADEVGUZaxxscM=T~ ;m6n1P-kyl2WI *MPok-Twpd