Study Session�oWN of MEETING DATE: 12/17/2012
STUDY SESSION
t0s ca��g. COUNCIL AGENDA REPORT
DATE: December 13, 2012
TO: MAYOR AND TOWN COUNCIL
FROM: GREG LARSON, TOWN MANAGER
SUBJECT: ALCOHOLIC BEVERAGE POLICY AND ENTERTAINMENT PROGRAM
STUDY SESSION
DISCUSS AND PROVIDE INPUT REGARDING THE MODIFICATIONS TO
THE TOWN'S ALCOHOLIC BEVERAGE POLICY AND THE DRAFT
ENTERTAINMENT PERMIT PROGRAM
BACKGROUND:
The intent of the Alcoholic Beverage Policy (ABP) is to outline the Town's expectations for
establishments serving alcohol and delineate a process for reviewing applications proposing
alcohol service. The Town last amended the ABP in 2001. Based on current trends and recent
applications, the Town Council has requested revisions to the ABP to assist staff, applicants, and
decision makers in better assessing applications and proposals.
The current ABP (Attachment 5) states, "Entertainment in association with an eating or drinking
establishment may be allowed if standards and a permit process are adopted." Over the last
several years, the Town has received and considered numerous applications for entertainment
uses. The lack of standards and a defined process has caused difficulties for applicants, staff, the
Planning Commission, and Town Council when reviewing such requests. Staff is developing a
draft entertainment permit program and is requesting additional input from the Town Council
before proceeding with additional community outreach and public hearings.
In August 2011, the Town Council held a joint study session with the Planning Commission on
new Entertainment Permit review process concepts and the proposed changes to the ABP.
Considerable Town Council and Planning Commission input occurred at the study session.
The intent of this report is to confirm direction from the August 2011 study session; review
results from other jurisdiction's entertainment and alcohol policies and procedures; present an
update on focused community outreach that has occurred since the study session; and provide
recommendations on both the proposed entertainment permit process and changes to the ABP.
PREPARED BY: Wendie R. Rooney, Strategic Project Director'
Marni Moseley, Associate Planner i
Reviewed by: IMAssistant Town Manager Town Attorney Finance
N:\DEV \TC REPORTS\2012\AEP -Ent Study Session 12 -17 -12 final.doe Reformatted: 5/30/02
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MAYOR AND TOWN COUNCIL
SUBJECT: ALCOHOLIC BEVERAGE POLICY AND ENTERTAINMENT PROGRAM
STUDY SESSION
December 7, 2012
DISCUSSION:
August 2011 Study Session Input: At the August 2011 joint study session, the Town Council
and Planning Commission reviewed a survey of the practices of nine jurisdictions with active
commercial areas, considered a draft entertainment permit process outline, and reviewed
proposed modifications to the ABP. Considerable Town Council and Planning Commission
discussion ensued during the study session (Attachment 1). The following is a summary of the
key discussion points. Staff recommendations regarding how to address each point follows each
comment and are in italics.
Staff is requesting Town Council concurrence of these discussion points and the preliminary
suggestions on how to address the issues.
• The survey did not include communities that were similar in size and character to Los Gatos.
This report contains a survey of practices and policies from communities that are more
similar in size and character to Los Gatos.
• The Town needs to facilitate more community outreach on the proposed ABP changes and
the new Entertainment Permit. Staff has commenced the outreach process. Two meetings
have been held with the Broadway neighborhood representatives, and staff proposes to
incorporate many of their concerns and ideas in the Entertainment Permit process. A
meeting with businesses that have alcohol service and /or entertainment was held to discuss
the purpose of the Entertainment Permit process and the proposed changes to the ABP.
Finally, staff is scheduling additional public outreach opportunities (community meetings
and on -line resources) during January and February prior to preparing the draft procedures
and amendments for Planning Commission and Town Council consideration.
• Both the new Entertainment Permit and the ABP need to include an introduction or a
statement of intent that clearly explains the Town's goals of both policies and regulations.
Both policies will include an introduction that explains the Town's philosophy regarding
entertainment and alcohol service and the intent and goals of the programs.
• The definition of "wine bar" needs to reflect the Town's intent that the establishments will
provide both retail sales space and limited seating for on- premise wine and food service. The
proposed wine bar definition will address this intent.
• Better define minimum food serving sizes. Will be addressed in ABP revisions.
• Consider the use of fees for Police calls, similar to the concept used with false alarm police
service calls. Staff will research methods for assessing fees for excessive service calls.
• Set limits and hours for outdoor seating for establishments with late night alcohol service.
This will be addressed in the ABP revisions.
• Entertainment should be limited to indoor venues only. Will be addressed in Entertainment
Permit Policy.
• The Entertainment Policy should apply Town -wide. Will be addressed in Entertainment
Permit Policy.
• The ABP needs to clearly distinguish between wine bars and stand -alone full alcohol bars.
Town definitions need to consider difference between the various State Liquor Licenses and
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MAYOR AND TOWN COUNCIL
SUBJECT: ALCOHOLIC BEVERAGE POLICY AND ENTERTAINMENT PROGRAM
STUDY SESSION
December 7, 2012
restaurant types. Will be addressed in ABP revisions. The revised policy will not reference
State Liquor License types since those can be modified and may not align with the Town's
objectives.
• Decide whether the new Entertainment Policy will be retroactive to existing businesses. The
policy will only be retroactive to those businesses that have the compliance condition in their
existing Operational Agreement. Existing businesses that request a modification to their
conditional use permit may be required to comply with the new policy, depending on the
requested modification.
• Ensure that the Planning Commission is reviewing Entertainment Permits and making final
recommendations to the Town Council. The review process will include Planning
Commission review and recommendation to the Town Council. The review process will be
formalized in the policy.
• Enforcement of the regulations will be essential for a successful program. The policies will
contain Town monitoring procedures to ensure continued compliance. The new code
enforcement procedures will also contain monitoring and enforcement procedures to ensure
compliance.
• Definitions need to be very clear. Expectations and definitions for each type of venue need to
be in the policies. Will be addressed in the policies.
• There may be a need for policies that are unique to the different areas of the Town. Will be
evaluated through further community input and discussions with the Police Department.
• Need to define Video Jockey (VJ) and determine whether it is entertainment and therefore
regulated. Will be addressed in the Entertainment Permit Policy.
• The Entertainment Permit Process should include the Police Department's evaluation and
recommendations to,the Planning Commission and Town Council. Will be addressed in the
Entertainment Permit Policy.
• The policy should address the current trend of "food counters" in restaurants, as these areas
could become stand -alone bars. This will be evaluated while drafting the policies. If food
counters are allowed, conditions will be included to mitigate potential use of counters for bar
purposes.
• Should consider moving the time that establishments stop serving alcohol from 1:00 a.m, to
midnight. This will be evaluated through further community input and discussions with the
Police Department.
Jurisdictional Survey: As noted above, at the previous study session, concerns were expressed
that the jurisdictions included in the August 2011 survey did not possess similar characteristics to
Los Gatos, and, therefore, may not be the best sources to use for developing Town policy on an
entertainment permit process. Staff surveyed additional communities that are more similar to
Los Gatos regarding their entertainment regulations or policies. Entertainment and Alcohol
policies were obtained from the Cities of Napa, Sonoma, Sausalito, Roseville and the Town of
Danville. Attachment 2 contains the results of the survey.
As noted in the survey, most of the jurisdictions regulate entertainment and bar or restaurant /bar
venues through a conditional use permit (CUP) process. While the City of Napa also uses a CUP
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MAYOR AND TOWN COUNCIL
SUBJECT: ALCOHOLIC BEVERAGE POLICY AND ENTERTAINMENT PROGRAM
STUDY SESSION
December 7, 2012
process for uses that are classified as Primary Entertainment (which includes theaters, cocktail
lounges, dance clubs or similar live entertainment) some other types of uses such as restaurants,
specialty retail, and coffee houses with limited entertainment are a permitted use with no
additional city review. Joint uses, such as restaurant /bars with limited area for entertainment, are
reviewed through an Administrative Permit process, which is typically a staff -level review. The
City of Napa has also adopted an Entertainment District, and application processes for
entertainment uses vary depending on if the establishments are located within or outside the
Entertainment District.
The City of Sonoma recently adopted a Music Venue Licensing process for indoor and outdoor
music associated with wineries, restaurants and hotels. The Music Venue License is processed
similarly to a CUP with a Planning Commission Public Hearing. According to the staff, the new
Music Venue Licensing was established due to the concern that a CUP vests with the land and
does not afford the City the ability to review the CUP in cases when a new owner or operator
takes over an existing business. Nightclubs and Bars are subject to a CUP.
The City of Sausalito classifies restaurants and the review process by the type of alcohol service.
Full alcohol service is subject to a CUP, and establishments serving beer and wine require a
minor use permit through the Zoning Administrator. The city only allows music and dancing
uses if they are subordinate or accessory to the principal use of an eating or drinking
establishments and have an approved Minor Use Permit through the Zoning Administrator. The
city limits music and dance uses to midnight.
The Town of Danville does not have regulations for live entertainment if it is performed within a
building. The Town regulates outside seating to control noise or other issues that may be
generated from the business. Outdoor seating requires CUP approval.
While the City of Roseville is larger than Los Gatos, it has very active downtown and old town
areas where the city encourages restaurants, cultural arts and entertainment. The city also
recently adopted an entertainment ordinance. The city's goal is to offer a variety of arts and
cultural activities and nightlife that is fun, safe, and for the most part, self - policing. The city has
an entertainment district in the downtown and old town areas, where the majority of the existing
entertainment venues and bars are located. With the recent approval of a downtown specific
plan, the city is expecting the growth of entertainment uses in these two areas.
The new Roseville ordinance requires entertainment businesses and bars that serve alcohol after
11:00 p.m. to secure an entertainment permit from the police department. The entertainment
permit excludes cultural arts events, restaurants or other businesses that telecast sporting events,
and music that is considered "background" music, whether it is live or recorded, as long as the
establishment does not charge an admission for the entertainment. Along with the city's noise
ordinance and Alcoholic Beverage Control regulations, the entertainment permit process
proposes to mitigate issues through requiring businesses to not admit intoxicated patrons to the
establishment or allow them to congregate within 20 feet during hours of operation and /or after
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MAYOR AND TOWN COUNCIL
SUBJECT ALCOHOLIC BEVERAGE POLICY AND ENTERTAINMENT PROGRAM
STUDY SESSION
December 7, 2012
the venue has closed. The police department reviews and approves the required security plans,
and the security staff must be well trained and licensed.
A more unique feature of Roseville's ordinance is that it allows the Chief of Police to tailor
permit requirements on a case by case basis. Depending on the size, nature, and history of a
business, the police department can add special requirements to ensure public safety, such as
prohibition of certain clothing attire, requiring an admission charge to control the amount of
patrons, separate entrances, specified number of security personnel, etc. The Chief of Police can
revoke, suspended or apply additional conditions to the permit if problems with the operation
occur.
As noted, with a few exceptions, most jurisdictions use a CUP process for entertainment or late
night alcohol service. However, most of those surveyed felt that the CUP process is not the best
regulatory tool for these types of uses since once approved the use is vested with the land,
regardless of the owner or operator. Consequently, there is a trend to separate entertainment uses
from other traditional CUP uses such as restaurants.
Stakeholder Meetings: Staff has met several times with residents of the Broadway neighborhood
to discuss and gain a better understanding of the issues regarding alcohol and entertainment uses
that currently impact their neighborhood. In addition, staff has sought input from the residents to
better address their issues and concerns within the proposed ABP changes and the entertainment
permit. The Broadway neighborhood's main concerns center around the following issues:
Customer parking extending into their neighborhoods
The resulting noise, public drunkenness, and vandalism that results from customers parking
in their neighborhood
General noise from music and patrons of the establishments that are open late at night.
In addition, staff held a workshop with members of the business community to share and discuss
the proposed changes to the alcohol policy and potential process for entertainment permits. Staff
received two main points of feedback regarding the draft entertainment program:
The process appears overly complex and cumbersome; some of the elements within the
permit process are already handled by ABC, and
They would like to see the process remain separate from their existing CUP; there's a fear
that adding entertainment may impact the existing approvals that their businesses enjoy and
rely on.
Staff continues to meet with members of the business community in order to gain input on the
process as well as discuss potential ways to mitigate impacts to nearby neighborhoods.
Recommended changes to the Alcohol Policy: Staff is recommending several modifications to
the language within the existing Alcohol Policy; many of these changes stem from discussion
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MAYOR AND TOWN COUNCIL
SUBJECT: ALCOHOLIC BEVERAGE POLICY AND ENTERTAINMENT PROGRAM
STUDY SESSION
December 7, 2012
with the Town Council and Planning Commission and direction of previous alcohol - related
applications. These recommended changes could include:
• Modification of the language regarding appetizers vs. full meals when alcohol is served. Due
to current dining trends, staff is recommending that small plates and appetizers be considered
a meal service when alcohol service is limited to beer and /or wine. The Policy will continue
to exclude snacks such as pretzels, popcorn, peanuts, and chips from this definition.
• Inclusion of language to permit alcohol service for waiting patrons. Many discussions have
occurred around the issue of serving alcohol before food is ordered, whether it is at the table
or while patrons are waiting for a table. The language within the current alcohol policy
would not permit either.
• Removal of the requirement for a benefit to the community for late night hours. The required
findings to grant a CUP, no matter what type, require that the application provide or meet
some need within the community. In order to remove the confusion between this
requirement and the Community Benefit required for traffic increases, staff recommends that
this language be removed.
In addition, current trends have shown a need to provide a definition and separate requirements
for wine bars and retail wine establishments with wine tastings. Staff is surveying other
jurisdictions to provide a definition that is applicable yet consistent with the current
dining /drinking trends.
Recommendations for the Entertainment Ordinance: Based on the outreach conducted to
date and a review of other jurisdiction best practices, staff continues to recommend a process that
separates the entertainment permit from the CUP. This would allow the Town to review each
owner, operating staff, and business plan separately to determine whether the permit should be
issued and the types of conditions that should be imposed. The separate entertainment permit
process also provides greater discretion to the Police Chief to immediately address problems,
including permanent or temporary termination of the use for noncompliance issues. Finally, and
most importantly, the principal advantage to separating the CUP from the entertainment permit is
to prevent the entertainment use vesting with the land through the CUP. This would be a change
to current practices of using the CUP to authorize changes to a business's operating conditions.
Staff also continues to recommend three separate entertainment permit procedures (Attachment
3). Type I and II Permits would apply to establishments proposing entertainment with late night
hours or alcohol service and establishments without alcohol service but with amplified music,
respectively. These permits would require Planning Commission review and Town Council final
consideration.
The final permit, Type III, would be for establishments that are proposing non - amplified
entertainment without alcohol service or late night operations and for restaurants with alcohol
service proposing daytime entertainment that is completed by 5:00 p.m. Staff is recommending a
DRC hearing process, with the decisions appealable to the Planning Commission. It is important
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MAYOR AND TOWN COUNCIL
SUBJECT: ALCOHOLIC BEVERAGE POLICY AND ENTERTAINMENT PROGRAM
STUDY SESSION
December 7, 2012
to point out that in the case of restaurants requesting daytime entertainment, staff is suggesting
that the CUP which established the restaurant or restaurant /bar use, would not need to be
amended, and, therefore, would not require Planning Commission or Town Council review and
approval since the entertainment would be allowed through the entertainment permit.
Police Department review and recommendations to the Planning Commission and Town Council
would be required for Type I and II permits. Establishments that require a conditional use permit
in addition to the entertainment permit would submit a separate application to the Community
Development Department for the CUP. The Entertainment Permit, along with the Police
Department recommendation, would be combined with the CUP application, and scheduled for
Planning Commission review and Town Council for final consideration.
Finally, once the CUP and the entertainment permit were approved, the Town would enter into
an Operating Agreement with the applicant that would outline the terms and conditions of the
Entertainment Permit, The Entertainment Permit and Operating Agreements would not be
transferable.
Based on the stakeholder outreach that has occurred, staff recommends the following additions
or changes to the entertainment permit process that was outlined in the August 22, 2011 Staff
Report (Attachment 4):
• All entertainment uses must be conducted inside a fully enclosed building. Prior to
commencement of the use, ambient noise levels would be established from residential
properties within 300 feet of the business premises. After commencement of the use,
additional ambient noise measurements shall be taken to ensure the noise source does not
exceed established levels. The Town would continue to conduct periodic ambient noise level
measurements, at the applicant's cost, to ensure continued compliance with approve noise
levels.
• Each establishment that has entertainment would be required to hire Town- approved and
trained security personnel to control congregating patrons in the establishment and adjacent
parking lot areas after closing of the businesses. Congregating in the parking lots would not
be allowed
• Entrances and exits to entertainment venues should be from the locations that are furthest
from adjacent residential uses, to the extent possible.
• Trained security personnel would be used to discourage patrons from parking in surrounding
residential areas. Once adjacent parking areas are filled, the security personnel would be
required to direct patrons to other public parking facilities.
• Prohibit outside seating for establishments that have interior entertainment and are within
300 feet to residential uses after 10:00 p.m.
• An Entertainment permit issuance fee will be established based on the cost of service.
Entertainment permits will be issued for a two year period. If no violations occur within the
two year period, the Town will automatically re -issue another two year permit. A fee will be
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MAYOR AND TOWN COUNCIL
SUBJECT: ALCOHOLIC BEVERAGE POLICY AND ENTERTAINMENT PROGRAM
STUDY SESSION
December 7, 2012
established for the biennial renewal to offset police review and the potential public safety
cost.
• The Police Chief would have the discretion to temporary close down a portion or all of the
business and disperse all persons for the remainder of the daily operation if there is an
immediate and ongoing threat to the public safety and well being of the patrons and the
general public.
•. In cases where the business retains a firm to administer the security plan, the Police
Department shall have the discretion to disqualify a security firm.
• Include the proposed Operational Agreement conditions in the Entertainment Permit to
ensure that the conditions are considered in the public review process.
• Community Development and Police Department staff will develop criteria for the Police
Department to use to evaluate the entertainment permit requests.
As the stakeholder outreach process continues during the next two months, these recommended
additions or changes may be further refined. The final draft program will clearly outline the
Town's expectations; definitions; conditions; submittal information; review procedures;
monitoring requirements; and suspension, modification or revocation hearing procedures.
Additionally the Police Department recognizes that new and expanded alcohol and entertainment
establishments create incremental public safety consequences, and that each application must be
evaluated based on their own unique characteristics. This proposed entertainment permit process
will provide police with the ability to evaluate the suitability and impact of new uses and apply
conditions as appropriate. Additionally, the proposed entertainment policy would establish
consistent business - conduct standards that could be judged for compliance by the Police
Department, and provide for the remediation of public safety problems including permit or
operational suspension or revocation. Police Department staff will continue to work with
Community Development Department staff to provide input into the entertainment policy
development, as it progresses.
Updated Schedule:
A community outreach meeting will be scheduled between mid - January and February 2013.
Staff anticipates scheduling the draft entertainment permit policy and changes to the ABP for
Planning Commission review in March of 2013 and Town Council review in April of 2013.
FISCAL IMPACT:
Consistent with the Town's cost recovery policy, the Town will determine the review and
monitoring costs associated with the proposed entertainment permit and the biennial review
process.
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MAYOR AND TOWN COUNCIL
SUBJECT: ALCOHOLIC BEVERAGE POLICY AND ENTERTAINMENT PROGRAM
STUDY SESSION
December 7, 2012
Attachments:
1. Meeting notes from the August 22, 2011, Joint Town Council and Planning Commission
Study Session on the Entertainment Program and ABP Changes
2. Survey of Jurisdictions' Entertainment and Alcohol Beverage Service Regulations
3. Proposed Entertainment Permit Process Flowchart
4. Joint Town Council and Planning Commission Study Session Staff Report of August 22,
2011 (Attachments not included)
5. Current Alcoholic Beverage Policy
Distribution:
cc: Planning Commission
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JOINT TOWN OF LOS GATOS TOWN COUNCIL /PLANNING COMMISSION
STUDY SESSION - ACTION NOTES
TOWN COUNCIL CHAMBERS
110 E. MAIN STREET
MONDAY, AUGUST 22, 2011
The Town Council and the Planning Commission of the Town of Los Gatos
conducted a Special Meeting on Monday, August 22, 2011 at 6:00 P.M.
JOINT TOWN COUNCIL /PLANNING COMMISSION STUDY SESSION
MEETING CALLED TO ORDER AT 6:00 P.M. by Mayor Joe Pirzynski
ROLL CALL
Council Members present: Mayor Joe Pirzynski, Vice Mayor Steve Rice, Steve
Leonardis, Diane McNutt, Barbara Spector
Planning Commissioners present: Chair Marico Sayoc, John Bourgeois, Tom
O'Donnell, Margaret Smith, Joanne Talesfore, Charles Erekson, Marcia Jensen
Staff present: Greg Larson, Town Manager; Pamela Jacobs, Assistant Town
Manager; Judith Propp, Town Attorney; Wendie Rooney, Director of Community
Development; Sandy Baily, Planning Manager; Suzanne Davis, Senior Planner;
Heather Bradley, Contract Planner; Jessica von Borck, Economic Vitality
Manager; Todd Capurso, Director of Parks & Public Works; Kevin Rohani,
Assistant Director of Parks & Public Works; Scott Seaman, Police Chief
Public present: Peter Carter, Kim Karloff, Larry Lenhart, Luke Lenhart, Lee
Quintana, Gail Randolph, Maria Risto, Michael Verga
VERBAL COMMUNICATIONS (Three - minute time limit)
Gail Randolph, 42 Broadway, commented on the Toll House and how it affects
her neighborhood. She has lived Downtown since 1971 and has seen a number
of establishments obtain alcohol licenses, leading to an increase of special
events. Examples of issues include an indoor bar and restaurant that allows
alcohol service separate from the restaurant, and a family restaurant with a full
service bar. Maximization along the corridor seems to be the theme. The
historic street needs to be protected.
Kim Karloff, 30 Broadway, commented that the Broadway and Clifton
neighborhood is asking for support and protection from bar businesses. Los
Gatos is becoming known as a bar destination. The Toll House operations have
recently been better. Disturbance from the Los Gatos Bar & Grille occurred just
this weekend. The Los Gatos bar business is a detriment to the neighborhood.
ATTACH 1
Existing laws should be enforced, and residents should be considered first.
Larry Lenhart, 30 Broadway, commented that the impact on the community
should be considered. Noise associated with drinking of alcohol is a problem.
Allowing drinking establishments to expand and stay open late is not a good
influence on or a good example for the children in the community. Enforcement
of noise at Los Gatos Bar & Grille is needed.
Michael Verga, 46 Broadway, commented that drinking establishments in the
area are not abiding by their use permits. The patrons on the deck outside Los
Gatos Bar & Grille are a real problem. Their behavior is not acceptable in a
residential neighborhood. It happens every Friday and Saturday night.
Maria Risto commented that it is important to reinforce how broad their concerns
are on this issue. Parents are trying to teach their kids that they do not need to
go out and drink alcohol to be social and have fun. She has lived on Broadway
since 1982. It is important not to go back to the "Whiskey Gulch" label that used
to be applied to the Town. It happens every weekend, not just with special
events. The Toll House should not be allowed to act outside the agreement they
have with the Town.
Lee Quintana, 5 Palm Avenue, commented that the issue is land use. The
Downtown-is a very narrow strip that is surrounded by residential and' that should
be considered with"anentertainment ordinance.. Noise-cannot be contained.
Residents that live around areas with drinking and entertainment should be
considered.
Peter Carter commented that the Toll House was built with certain conditions,
and when it was expanded the outdoor area was allowed, but it was specified
that amplified music was not permitted. Residents are asking that they follow the
use permit. An entertainment district is about residents going, Downtown and
enjoying dinner or a cocktail, or walking around. The San Jose entertainment
district is a real problem and has almost counteracted the investment_that_went
into it. An `entertainment district is only going to' bring people in from outside the
Town and continue to cause problems.
Joe Pirzynski encouraged residents to report incidents to the Police Department.
Greg Larson commented that when staff received complaints about the Toll
House operation, it was followed up on. He did'd —ride along wi6*an officer last
weekend, and noted that the police have a strong presence in the Downtown.
DISCUSSION TOPICS
Alcohol and Entertainment Policy
V
Tom O'Donnell commented that what he has heard tonight is similar to testimony
that was has been received by the Planning Commission when considering use
permits. He would like to discuss the philosophy of what is being done, and
outline how we visualize Los Gatos continuing before making rules.
Marico Sayoc commented that, using the Toll House as an example, one of the
issues is lack of enforcement and the lack of coordination with enforcement
procedures. There was no tally of complaints associated with the Toll House.
She is interested in how it has been operating since the Planning Commission
hearing, what type of complaints have been made, and what the follow -up was.
Barbara Spector commented that when considering entertainment, the business
is often close to residential and that concerns her. Some of the jurisdictions that
were looked at, such as Newport Beach, are not relative to the Town. Noise "not
impacting the neighborhood" cannot be monitored. It is not consistent with small
Town character to increase entertainment.
Greg Larson noted that the Toll House operation was not placed on the agenda
as the topic of discussion was alcohol and entertainment generally. The Council
and Commission will be discussing and directing staff on what tools and policies
to proceed with.
Joanne Talesfore commented that every time the alcohol policy is applied to a
business, there is a series of consequences or events that occur. Kids are being
given dual messages. The policy needs to be clear on what is being
encouraged.
Joe Pirzynski commented that what is done should be based on what the Town's
needs are.
Wendie Rooney commented that there are a number of issues that need to be
addressed. This is a process and it is important to put together a framework to
work through it. It has been a collaborative process with staff from various
departments involved, including Police and the Town Attorney. The objective is
to update the alcohol policy and establish an entertainment policy. Since
adoption of the alcohol policy in 2001, entertainment has been discouraged.
Staff believes that it is important to the Town's economic vitality to have a
managed nightlife. The process would be separate from land use permits, and
approvals may be revoked if businesses do not follow approved regulations
(affecting public health, safety or welfare). She reviewed a number of discussed
topics including the following:
• Definition of entertainment
• Differentiating between tasting rooms and wine bars
• Definition of wine bar
• Revisions to Alcohol Policy
3
• Entertainment Permit process
• Operator's license
• Operational agreement
• Businesses serving alcohol requesting alcohol in a separate category
• Background reviews for key individuals associated with alcohol serving
businesses
• Police Chief discretion to revoke a permit if it is under investigation
• Police Department will assess fees for investigation of valid complaints
Next Steps:
• Evaluate Newport Beach Ordinance relative to the Town of Los Gatos
• Draft formal Entertainment Policy
• Planning Commission and Town Council hearings
*.-Stakeholders outreach meeting
Diane McNutt clarified that the policy would be Town -wide. She asked for the
definition of an "operator" Wendie Rooney said operator includes owners, silent
partners and management staff.
Diane McNutt commented that it is important to understand what it is the Town is
trying to encourage. The term "nightlife" is troublesome to her. A policy should
be created -that. covers entertainment, uses that. are less of an-impact, such as
guitar ;harpist -orpiano:,.Sheasked about including. large. televised. .even.ts-su.ch
as the Superbowl or other major sporting event. Are-events-such as outdoor
films or a fashion show considered entertainment. Need to consider what. should
and should not be included in the definition. A wine bar is a hybrid of retail and
wine tasting. Perhaps fees should be assessed for calls of police service beyond
a certain number (similar to false alarm calls).
Steve Rice thanked staff for a complete and informative packet. He would like to
see the retail component strengthened •so a wine bar..can not, exist with only
service- of wine; An operational agreement should be required for all alcohol
related business operations.
Barbara Spector asked who are considered stakeholders. Wendie Rooney
commented that stakeholders include the: Chamber.. of Commerce and
businesses .interested in obtaining an entertainment permit.
Heather Bradley commented that the next step after meeting with. stakeholders
would be to include residents in the process (neighborhood meeting format).
Barbara Spector asked if wine bars are able to serve any size portion without
meal service. Wendie Rooney said that as currently proposed any patron could
order a glass or bottle of wine without food.
M
Barbara Spector asked if economic benefit has been defined. Wendie Rooney
commented on the social benefits of a community that offers different types of
night life.
Steve Leonardis commented that it is important for the community to decide on
the image that is desired for the Town. He would like to limit outdoor seating in
rear areas adjacent to parking areas and restricting hours. Entertainment should
be kept indoors.
Marico Sayoc commented that the relationship between commercial and
residential is Town -wide, particularly with development of former auto
dealerships and the North 40. There are a lot of neighborhoods outside the
Downtown that will be affected by this policy. Is the distinction of being a wine bar
versus a restaurant with separate bar needed. Clarification is needed on type 42
licenses as these types of licenses specify that minors are not allowed to enter.
This could affect family restaurants and establishments with retail sales.
Marcia Jensen thanked staff for the presentation. She asked if the entertainment
policy will be retroactive. Wendie Rooney said that it would apply to any recent
applications with the condition of approval requiring compliance.
Judith Propp commented that new permits, such as Los Gatos Bar and Grille,
Pedro's, Rootstock and Enoteca have had this condition included. Existing
businesses generally do not have to come into compliance with new regulations,
but the Town could consider an amortization schedule or alternatively,
development of a voluntary incentive program for businesses.
Marcia Jensen commented that she does not think it is a good idea to take the
Planning Commission out of the process. Streamlining may result in issues not
being presented. She is concerned about the Police Department having
discretion on who gets a permit as opposed to it going through a public process.
She does not see where the Planning Commission will be involved in the
process.
Wendie Rooney clarified that CUP's go through the Planning Commission before
going to Council. The Police Department recommendation on the entertainment
permit would be forwarded to the Commission with the CUP, and the public could
participate at public hearings.
Greg Larson commented that the materials that were provided are not draft
public hearing documents; they have been provided for study session purposes.
Charles Erekson thanked and complimented staff on their evaluation of two very
complicated issues. It is important to have a statement of philosophy or intent so
that it memorializes what we are trying to do. It is important not to overestimate
the need for careful use of words. Definitions need to be clear. The Alcohol
Policy should state how expectations for different types of establishments will be
set. Define types of establishments and their purpose in the policy, as well as the
type of entertainment that might be appropriate for each.
Joanne Talesfore commented that how tasting rooms and wine bars are defined
is important. she is concerned that a wine bar can also serve beer, and why that
is different than a restaurant that serves beer and wine. She is not sure that is
appropriate. A public safety fund is desirable to recover costs.
Tom O'Donnell commented that the Commission has been talking for some time
about obtaining-guidance from the Town Council on tills issue. The Newport
Beach Ord'inance`gives the power to the Police Department and City Manager.
Issues have arisen with entertainment.' `What does'the term "strongly
discouraged" mean Different areas may need diffe`re'nt regulations. The
Downtown is'coriipletely'biff eren fha'n otherareas. It is notclear how we
visualize our Town and where e'ntertainment should be allowed. He is concerned
about the Town not being "Whiskey Gulch" at 2:00 am. Need to define what we
want to do, then implement documents to help get there. The question of who
decides what and low it is decided is not clear. Where should entertainment be
allowed, and what should it be.
Margaret Smith-commented that -it'is not`clear who we are trying to,attract to the
Town- with this policy °"What types of businesses °arewe °trying "to -bring in to
enhance the Town and make it what we want it to be. Need to establish a
general philosophy 'ts}ttie intent to regulate'nightfime entertainment, or
entertainment at all times. - 'Tasting rooms are°going toward r add iing -beer and
spirits, and that needs to be considered. We are not the menu police. "Small
plate" is very vague and needs to be better defined. There has been a recent
shift in the Town's nightlife.
John Bourgeois commented' on the permit process, It is a three- tiered approach
and he does "not- understand -why each type of permit is needed and how that
streamlines the process. Wendie Rooney clarified that it allows more flexibility
and results in a faster response.
John Bourgeois commented that when a CUP i. s not required, it is a staff
dec'ision;'and that concerns' Kin . ' Wendie Rooney noted that staff is
recommending a staff -level review and approval for a requestfor enterfain`ment
that is not associated with a business serving alcohol. However, staff has not
fully evaluafed how to process types 'of entertainment, such as outdoor venues,
that'may be "more problematic.
John Bourgeois commented that stand' alone bars are strongly discouraged, yet
wine bars are allowed: He sees a conflict, and would like to see discussion on
that. The definition of entertainment is-silent on use of a VJ.
2
Joe Pirzynski recommended that everyone take a look at the Campbell definition
of entertainment, it is quite "entertaining ". There is an extraordinary selection of
restaurants and bars in the Town. 98% of venues are serving the community in a
way that is appropriate. He appreciates the focus of the Police in evaluating and
providing recommendations on business operations. There are a few individuals
and proprietors that are not handling situations appropriately. He would like any
individual to feel safe in the Downtown at any time of day or night, regardless of
age. The primary issues are not occurring in most establishments in Town. The
specific venues where problems are occurring should be isolated and attended
to. The nuances and issues associated with a wine bar are very interesting. We
need to attend to the problems and issues and not eliminate businesses that are
good for the community.
John Bourgeois commented that the Planning Commission has been concerned
with restaurants have been coming in with "food service counters" as they could
become essentially a stand -alone bar.
Diane McNutt commented that she would be interested in moving the 1:00 am
policy back to midnight.
Steve Rice commented that the two wine bars that have come through the
process have limited seating and could not function strictly as a bar. He would
also like to have a discussion on a vision statement.
Steve Leonardis commented that a wine bar means serving wine and beer, and it
is a different type of establishment than a bar. Service of hard liquor should be
specifically excluded.
Marcia Jensen commented that the policy is fairly broad. How will permits be
administered for a one time event versus recurring events, and should the type of
event be a factor.
Marico Sayoc commented that noise is a concern. When an application comes
before the Commission, she would like to know what the proper radius is for
noise evaluations.
Margaret Smith commented that for frequent visits by the Police, a fine could be
established.
Joanne Talesfore commented that recovering public safety costs is desirable.
2. Community Benefit
Wendie Rooney explained the legislative history from 1991 to 2002 when the
current community benefit policy was adopted. The following issues need to be
addressed:
7
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I �\q H a
COUNCIL AGENDA REPORT
DATE: August 18, 2011
0
TO: MAYOR AND TOWN COUNCIL
FROM: GREG LARSON, TOWN MANAGER
MEETING DATE: 08122/11
JOINT STUDY SESSION
ITEM NO: I
SUBJECT: INFORMAT10N REPORT— TOWN COUNCUPLANNING COMMISSION
JOINT STUDY SESSION ON POTENTTLkL AMEMDENTS TO THE TOWN'S
POLICYREGULAT NIG THE SERVICEOIF ALCHOLIC BEVERAGES AND
NEW POLICY OR ORDINANCE ADOPTING STANDARDS AND PERMIT
PROCESS FOR ENTERTAINMENT
RE C 0 Mj ME N D ATI 0 'N:
Discuss the existing Policy Regulating the Service of Alcoholic Beverages and directTown staff to
make changes to the policy and to draft a new policy or ordinance for regulating establisliments
0
providing, entertainiTient particularly in conjunction with late night hours and or alcohol service, and
those that do not serve alcohol.
PURPOSE:
Thepurpose of thejoint study session is to provide the decision makers with an analysis of the issues
and to obtain direction in almending the existing Alcoholic Beverage Policy (ABP) and developing.a
new Enteitaininent Policy or Ordinance. The new Enteitaininent Policy or Ordinance is intended to
regulate establishments providing, entertainment with alcohol. service and /or late night hours, as well
as to provide a process to regulate entertaini-nent in establishments without alcohol such as coffee
houses and ice cream parlours that could potentially cause.noise or traffic impacts,
BACKGROUND:
In September 2001, Town. Council approved Resolution. 2001-106 (Attachment 1) amending the
Town's Alcoholic Be-verage Policy, The ABP specifies that:
PREPARED BY: k``'Wendie R. Rooney, Director of Corn munity Developinent
� &� Assistant Town N inance
Reviewed by: Manager KQ) Town Attorney I-
Refonnatted: 5/30/02
Revin& 500?2011 11-04 AM
ATTACH MENT 4
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: ALCOHOL AND EN"I"ERTAINMENT POLICIES
August.17, 2011
1, The Town shall continue to discourage applications for entertainment establishments
serving alcoholic beverages.
2. Entertainni.ent in association with an eating or drinking establishment maybe. allowed i. f
standards and a permit process are adopted.
Since the adoption of the Resolution 2001-1.06, and until recently, the Town has continued to
discourage. entertainment uses. The To,wn has neither developed standards zoos permit process to
allow new entertainment uses. Businesses that currently operate with eiitertainment -uses were either
approved prior to the adoption of the entertainment restrictions set foftb in th.e.Alcobol Beverage
Policy or wercrecelitlyapproved with the intent that an Entertain rent Polkywas being drafted and
that these newer entertaimnent venues would be required to comply With the forthcoming
entertainment permit -regulations.
Based on researcli, staff believes that it is important to the vitality ofthe Town's commercial areas to
allow anaanaged nightlife with its social and econ(y.rnic bQ.n.efits, while controlling public and
neigbboufhood disturbances and fitniting the need for police seiwices, Please see Attachment 11, an
ICMMA Press article entitled "Got :Nightlife." 'Within the comnunity, the majority of establishments
that provide eatertamrnent, along with alcohol, operate appropriately; however, these types, of
operations have the potential to present special problems that include: excessive alcohol
consumption, noise, boisterous conduct, assault, littering, loitering, overcrowding, arld illegal
parking, when not appropriately managed by the owners or operators, or regulated by the Town,
The 'Town has typically considered anything beyond pre-recorded i-nusic to be entertainment,
including a live DJ, dancing, live musical perforrnances, and live vocalpeif9imances. AttaQhment2
provides a, list of all existing btisin.eswg within the Central Business District with approvals flor
entertainment in co.njunctionwit.11 alcoholic beverage service.
The intent of an Entertainment Permit process is to provide additional legislative flexibility to review
permits on a regular basis and to modify, suspmcl, or revoke Eritertainment Permits when
establishments operate in a manner that threatens the health, safety, or welf7are of the corunilinity
(such as when a restaurant begins to change the ambient character of the business and operate more
like a bar or night club, providing less dining service and niore alcohol focus, attracting larger
crowds, and providing cniplified music). As recommended, the would be a
separate process from the Conditional Use Pernift (CU'P) that is.requ*li.red for venues that serve
alcohol. By separating the processes, the entertainment use would beuniquelo the operator and not
a vested land use right that "runs with the land" and can only be revoked upon specified findings
made by the Town Council or Planning Commission, Staff is recommending a process wh.oreby
Entertainment Permits in conjunction with.. Operational Agreements, and OperatorLicenses would
be issued to the business owners and managers, and would not be a vested land use entitlement.
PAGE 3
MAYOR AND TOWN' COUNCIL
SUBJECT: ALCOHOL AND ENTE RTAINIMENT PO1JCIES
August 17, 2011
In formulating the following recorn.r.n.endations, staff surveyed nine jurisdictions with active
corm-nercial. areas (Attachment 4), The survey contains a summary of substantive policy topics
relative to entertainment use, including:
o Limitation on hours of operations/soft closing standards
* Entertainment definition.
o Conditions
a Provisions/conditions for outdoor seating
o Conditions on location of alcohol service within the establishment
& Conditions for the limitation of size, number of seats, and occupancy
o Provisions for limitation of concentration of establishments
* Requirements for security and management. plans
e Provisions for regulatory intervention process
e Provisions for cost recovery of public safety services
ces
o Provisions for regulating established businesses
o Submittal requirements
a Approval process
* Findings
a Permit timelines
a Nloise provisions
a Transfer of business operations
Please note that the last column of the survey contains staff s recommendation on each of the policy
areas,
Issues:
Planning staff vmrked closely with the Police Department and the Economic Vitality Manager in
reviewing the positive aspects as well as the challenges associated with entertainment and/or alcohol
establishments and identified the following issues which the Town Council. and Plannina
Commission should carefully consider. Staf-frecommendations regarding the following ite-ins a,"
contained in the attachinentS referenced or included in the follo'Nvin(T "Discussions`" Section
1. 14owshould entertainment be defined'?
2. How should. wine bars and tasting rooms be defined and differentiated from traditional bars?
-n -i ve ag policy?
3 What ainendnents should be made the cur Alcoholic Be x ePo ?
4. What policies, standal ds, and processes should. be included in the neVv entertainment policy or
ordinance?
S. How should, public safety costs be recovered?
C. What changes should be made to the existing outdoor seating policy for consistency witli the
Alcoholic Beverage Policy?
PAGE 4
MAYOR AND TOWN COUNCIL
SUBJECT: ALCOHOL AND POLICIES
Ai(gu,51.17,2011
7, How would the new policies apply to existing establishments?
8. Should the Town prepare an ordinance or policy iruple-men'ting the Entertainment Permit
process?
DISCUSSlON:
1. .ow should entertainni-ent be defined (Re
,fer to Altachinent 8)?
Based on. the survey, internal discussions and consultations with other jurisdictions, staff is
Enterta ill ruent:
Entertainment is de nod as any act,pjay, show, dance, song, instrumental music or the
production or provision of sights or sounds, including music: provided b 2 y a disc jockey (DJ)
designed to entertain members of the public, or participated in bymenibers of the public,
,guests, customers, employees or any other persons. Pre-recorded music,, 'video jockeys
(Vis) shows, and television broadcasts would not be considered entertain-inent for the
purposes of requiring an. entertainment permit.
C;:�
Staff is reconu-nending excluding Video Jockeys (VJ's); television, broadcasts, including conceits;
and pre-recorded (non DJ) music from. the entertainment permit process since this type of
entertainnnent does not ordinarily haNve flie potential to excite the audience, generally does not
have similar potential noise impacts as live.music or DJs, and -can, be terminated quickly.
2, 1--1ow should ivine bars and tasting r onis be dqfined and dif
0 fer(entiatedftoin ti-aditional bar$?
Staff is recommending the following definitions for Wine Bar and Tasting Rooms (Refer to
Attaclunent 8).
Tasting Room:
A tasting room is defined' as in establisbinent that allows, customers to taste samples.: of
wine, limited to one.- ounce pout per aiyd-h.as a Type 0-2 Liquor License asued-by
the C,,,tliforiii.a.Dtyii,artiii.eiat of Alcoholic Beverage Control. There'is -not ane.t,teblished lhnit
on tht number or servings. -A fasting room may sell wine, beer, and: related gift itenis but
does not provide food service, other t1van palate cleansers aucli as crackers, cheese or fruit.
Establishnients that are classified by the State Department AlcohoEc Beverage Control as
bars, nightclubs, taverns or restaurants are not included in this definition.
A Type 02 License-is lIssued to wineries and allows tasting rooms. j.ype Q2 -is for off-sale but allows
saniples; howevermost tasting rooms intend to operate with Type 42 which does not allow minors
on. the premises. A Type 42 License (Ora Sale Beer and Wine --Public Premises) tiuth:orizes the sale
of beer or wine for consumption on or off the premise -where sold. No distilled spirits may be on the
premises, minors are not allowed to enter or remain, and food service is not reqdired. See
Attacbment 12 for the definition. of the California Departnient of Alcoholic Beverage Control
Licenses.
PAGE 5
MAYOR AND TOWN COUNCIL
SUBJECT: ALCOHOL AND ENTERTAINMENT POLICIES
August.17, . 0.1.1
It is important to note that there is a. new trend in distilled spirits tastings,which would be considered
a bar use under both the Town's criteria and the California Departnictit of Alcoholic Beverage
Control Board licensing criteria.
Wine Biir.
A wine bar is defijied as an establishment that serves only wine by the bottle or by the glass
and. generally has a Type 42) Liquor license issued by the California Department of
Alcoholic Beverage Control.. Wine bars may also offer a selection of beers and nollo-
alcoholic beverages, A wine bar may sell related gift items and shall have- food service
available during all hours of operation, but is not recluired to serve meals (as defined by the
Policy Riegulating the Consumption and Service of Alcoholic Beverages). Food service
would meet the definition of small plates or meal service as defined in the Alcoholic
Beverage Policy,
This definition would result in asbift in Town policy regarding mandatory food service with
a I leoliol service, Wbile this definition would tecluire thebusiness to provide -food during all hours
of operation, it would not mandate that each patron who is served wine also have a meal service.
3. T;Hiat ainendinentsshould be ?nacle to the cu•reiit Alcoholic Beverage Polig?
The principal changes include reference to the Eatertainnient Permit process:.repireinetyt -for an
operational agreement;a1lowance 1br. small I�Iate service; elim.ination of the Com.niunity Benefit
analysis; processes changes; and new definitions relothre to types of establish
1 uncilts,fbodservice,
etc. Please refor to Attachment for the staff recommended olianges to the policy.
4. lFhatpolides, sfandcircts, andprocesses should be irichided in the new
Ordinwice?
Please rater to Attachments 9 and 10 for the rccO.itly adopted Newport Beach ordizanec
regulating ei-ftertaim!wnt establishments and the Nfunicipal. Code Sections that implement the
I" t7
ordinance and the staff'recommendation on the survey of otberjurisd . iction.'s policies, standards,
and processes.
5. How should public sc-ife(y, costs be recovered?
As discussed in the followine, sectio.n., sttiff is recomrnen ling
lt�' a , full cost 'recovery (time and
materials) for the pernlitting process and any follow-up police investi gati oils for -validated
noncompliance with permit terms, This, however, does not address the o.n.goi.11- public safety
costs that can be incurred with these types of uses. Of the nine jurisdictions surveyed, none
collected fees for the ongoing public safe-ty cost. The only -fees collected were for the permitting
process. While staff believes that cing ing costs can be partially mitigated through. the individual
go r,
businesses' security and operational management plan that would be required with the
Operational Agreement, public safety sta:ffrecognizes that there are additional increntental costs
of providing services with these types of uses.
PAGE 6
IMAYOR AND TOWN COUNCIL
SUBJECT: ALCOHOL AND ENTERTAINMENT POLICIES
/Iugust J7,20.11
6 What changes should be made to the existing outdoor seating policil ivithin the 111coholic
Beverage Policy?
Please refer to Attachment 3 for suggested changes and Attachment 8 for suggested draft
definitions.
7, flow would (lie newpolicies aj1ply to existing .est.ablish in ents?
Please see the recommendations in the following Section.
& S)iould the Town prepare an orelinance or,policy finplementilig the Entertainment Permit
process?
As the Town Council is aware, the Alcoholic Beverage regulations are in the form of a policy.
The key advantage to implementing the program through a policy is that it can be quickly
modified as needed. Conversely, NNIiileaii.ordi,ii,,itAcego.iiei-a.Ilyres.til.ts incodit'ingtheprogmm,
it requires more administrative processes to make any modifications. CaiiseqLlentl,y,st,,Iff'woLfl.d
recommend that the Entertainment Permit requirements through a policy that is adopted by
resolution.
Suggested Entertainment Permit Process
Staff recomi-nends that the ABP be separated fi-orn the .E-ii:tei-taiii.iiieiit,Pol:i,cy or Ordinance because
some businesses such as coffOe .louses or ice cream parlors,may have,entertaiainent and not serve
alcohol, and consequently. staff does not believe that these uses should be inipacted by the ABP
process, Additionally staff reco-mmends leaving the majority of the Alcoholic Beverages Policy
intact with only minor revisions. The recommended revisions include: deleting the community
benefit criteria due to the difficulty in making the finding that new or expanded 41cohol-serving,
I
to die a
businesses provides, a benefi c.oti-uiiunity....providitig.c.-I.�itit)�ingl�iiigLge.PCI.tkli.11illgtOO adoor
seating and meal. service- providing specific poll cy for bars and tast-1:11-g rooms; and providing;
ref renc,e to the new Entertainment Policy or Ordinance.
Following the review of the nine jurisdictions in the survey, discussion with internal. staff' and
consultation with other agency staf[*, sta-fTrec(,.)innien.dS the utilization of a three tiered. •egulatory
approach when. an expanded or new ostibli.§Iil.neii.t.i-equests to provide entertainment in conjunction
-kA,ith alcohol. service or hours for alcohol sen4ce. Th-0 tiered approach contains the
.following cornpononts: (1) Entertainment Penn-it, (2) Operational Agreement, and (3) Operator's
License.
!Entertaihib nt Permit and Operator's License
Businesses that ser ,e alcohol andw.-e requesting entertaintnent or businesses that are proposing late
night alcohol service without entertainnlent would be required to first apply to the Police DepTailment
for an Operator's License (issued to the owners and key management staff) and Entertainnient
PAGE 7
MAYOR AND TOWN COUNCIL
SUBJECT: ALCOHOL Ai\TDEi\TTERTAIN�,ME-,\TTPOLICII-,S
,Jugust 17, 011
Permit. The application. process would run Concurrently -with the CUP process for the new or
amended application. Applicants would-submit an application to the Police Department that outlines
the request; business plan (relative to the entertainment or late night alcohol service); the type of
entertainment (live bans, DJ, etc.); number of events; the owns rhiianagQr inf6rination; etc.. The
Polite Departiment would have the discretion, to perform a background check on the owners, silent
partners, and the management staff to determine if the individuals had. any prior law, enforcenit-tit-
related issues with this type of use, The Cities oflMountainView, Burhigame, Safi Jose, Palo Alto
11
Campbell,and Newport leach use a similar background check process,. and accordingto the,survey,
the average processing time for these cities is two to three We6ks. As the cost of conducting the
background check would vary, the Police Department would base the fee on actual cost to provide
the service and establish a reasonable timefi-ame in whith to review and recommend approval or
denial of the Entertahir.nent Permit and Operator's License to the Town Council. The,
recommendation would include specific conditions on the operation, including.hours', limits on the
time for particular activities (e.g, permitted hours for live entettaim-nent or (lancing); physical
improvements to the site (e.g. signage, sound attenuation, etc.); and security-provisions. ( security
plans and personnel, crowd management, noise management, etc.). The recommendation to approve,
approve with moditioations or deny an Entertainment P ermit would be made to the Town Council
during its consideration of the CUP for the alcoliol use.
As noted. previously, exceptions to this process would be in
cases when an establishment proposes
entertainment without. alcohol service, such as a coffee house or ice cream shop, in which case the
Community Development Director would issue an Entertaininent Permit (not in conjunction with
alcohol service.)..
In addition to separating the Entertainment Permit ftom vested CUPs, the biflircated process also
provides the Police Department with immediate and effective enforcement tools for addressing
potentially severe violations and leverage for addressing. more minor compliance , issues. If a 11
establishment were under investigation for any noncompliance with. the Operator's License or
Entertainment Permit, the Police Chief would have discretion. to allow the non.-.entertah-unent
component of business to continue operating while the investigatioj). was occurring, and in severe
cases,. the Police Chief would be able to temporarily suspend .an Entertainment Permit. The Police
Department would assess ake for the investigation based on cost recovelymodel. The fee would
be applied if the Police Department determined that there was a valid violation as opposed to an.
alle'ac.d. complaint. Ttie Entertainment Permit would ;not affect the vested land use right of the
establishment, and businesses could operate without the entertainnient use.
Operational Aizreeineiit
Ali Operation Agreement between the Town and the business would outline a security management
plan, business operational conditions relative to the entertainment and/or alcohol service. Sinjilarto
the Entertaiiiinent Permit, the Operational Agreement would be unique to the business and separate
from the CUP. If a business ultimately obtained a CUP approval of the application, the Police
PAGE 8
MAYOR AND TOWN COUNCIL
SUBJECT: ALCOHOL AND EN"i"ERTAINMENTPOLICIES
August .17,2011
Department would then issue the Entertainment Permit and Operator's License. Following approval
of the CUP, the Police Department, Town Attorney and Community.Developinent Dq)ailnitnt
would be responsible for preparing the Operational Agreement.
The Entertainment Permit, Qperational Agreement, and Operator's License would be subject to
review at anytime based on non-compliance with..any provisiuns of the permit, agreement, or li pense
including but not limited to a reported incident invol Ving a call for police. service. Upon finding
cause, the Police Department could inodify, suspend, or revoke the permit, agreement or license,
Permits, agreements, and licenses would not be transferable- and could ,fie appealed to the Town
Council.
In January 2011, the City of Newport Beach. adopted a similar ordinance entitled "Regulating
Establishments that Offer Alcoholic Beverages for Ono-Site Consumption in Comb i nation with Late
Hours, Entertainment, or Dancing to Obtain an Operator License" (See Attaclu-nents 9 and 10 for.the
ordinance and firiplementing Municipal Code Sections). This ordinance, used in conjutiction with
other. Newport Beach. n1unicipal code regulations, addresses similar issues to those of the Town.
After review of the ordinance and discussions with. Newpoit Beach Planning statff, Town staff
believes that this ordinance provides a, reasonable approach that not only addresses community
concerns but also streamlines the regulatory process for new and expanding businesses.
Consequently, staff recominends -using the ordinance and regulations as a. template for the
fL)rth.coming'l-'.tite,.rtaiiii-.n.eiit Perhift and Operator's License process.
Staff proposes that the new 'Entertaitirnent Ordinance be applied to existing, businesses when an
amendment of the existing. CUP is made, upon issuance of :a building permit fora modification that
changes the occupancy of the business, Or upon resolution of a code violation. Additional criteria
could be niade to inoentivi7e establishments to voluntarily obtain peftnits and licenses, or an.
arnortiz,atipmj process cotildbe utilized to ultimately bring 411 existing g"businesses into com li.ance
with :tht,, view Eftte,it,�iiiiiaeiitPol�icyotOrdi.ii,,itice. F.Imilly,fliere are anuiVber
such as -Los Gatos Barand Grill, Gardino.'S, 13notecaLaSloria., etc., until we with.
they were established. The revised and new regulations would be required of these existing
businesses.
Staff would furthenteountmend utilizing the operational agreement and operator's licenseprocess R)r
snare -unique uses, such as the c-anent trend of movie theaters that are serving food and alcobol. A
quick rep -few of those that have been recently approved or are pending approv al in Califbrnia, such as
Cin6polis Luxury Cinemas, are aged restricted to inect.A.BC requirements.
In regards to integrated developments that encompass a variety ofrestau•an.f and entertainment -uses
in a. shopping center environment with on-site security, similar to what may be envisioned' in t1le
North 40 dove] ol-nnent, staff would recommend a similar process as describe above, but would also
PAGES
MAYOR AND TOWN COUNCIL
SUBJECT: ALCOHOL AND ENTERTArINMENT POLICIES
August 17, 2011
suggestincorporatiag the stagy, dards. particularly for outside dining and alcohol service in the
governing specific plan.
Lastly, it is important tc) note that this is the first step in developing the entertainment perin it process.
Based on Town Council direction, a more detailed process will be outlined and presented to the
stakeholders group for further input, The final detailed process would be submitted to the Planning
Commission, for recommendations and to the Town Council for final action. Staff anticipates that
the entire process could be completed by the end of the year.
NEXT STEPS:
Staff recommends the following steps:
I , Further evaluate the applicability of City of NewpcyrtBeach ordinance and provide staff direction
regarding the merits of the ordinance in relationship to the Town's goals,
I, Present a draft of the proposed program to stakeholders to solicit input from affected businesses,
property owners, and the Chamber of Commerce on potential changes to the current Alcohol
Policy and now Entertainment Policy or Ordinance.
3. Direct staff to draft an ordinance or policy regulating permits for establishments providing
entertainment,
4. Direci staffto evaluate the appropriate fees which should be charged to cover application review
costs,
5. Hold a Planning Comi-nission meeting to consider the amendments and new policy or ordinance,
6. Hold Town Council meetings to adopt the amendments and new policy or ordinance.
CONCLUSION:
The goal of the Town Council/Planning Commission joint study session. is to facilitate a discussion
that results in clear staff direction on changes that should be made to the existing Alcohol Policy. In
addition provide clear staff direction ondrafting anew policy or ordinance regulating permits for
establish.ments providing entertainment with separate and distinct application requirements for
establishments serving alcohol or having late night hours and those that do not serve alcohol. The
survey of nine jurisdictions with active commercial areas provides information on the substantive
sections of the policy or ordinance. As noted above, staff finds that the Newport Beach. ordinance
addresses many of theTown iSSLICS and would provide a good model for aTown policy or ordinance.
Following the preparation or a draft policy or ordinance, staff recommends holding a stakeholders
meeting to solicit input from the affected businesses, property owners, and tl-ie Chamber of'
Commerce.
PAGE 10
IMA"YOR AND TO\\,-XI COUNCIL
SUBJECT: ALCOI-101.. AND EN'l.'E[Z'I'AIN\;IE'\'I'POI..fCI.ES
.�Ijtgust 17, 2011
A-17ACHMENTS:
1, Resolution 2001-106
I Alcoholic Be%!erage Sci-vice and Entertainment Uses in the Central Busiiicss District.
lohey Regulathig the Consumption or Alcoholic Be\,eragges adopted in 2001 with staff
comments on areas recommended flor changc.
4. Survey of Alc(.-Alolic l3everag"e Consumption and E.titertaiiiiiieiit.Policies,!OrditiaiACcs
5. Standards for Outctoor Restaumnt Seating adopted in 1994
G. Zoning re(IIIIIations Section 29,20-318 Modification of Operating Hours of Establishments
Serving Alcoholic Beveraocs.
7. Los Gatos Ordinance .2021 Amending Chapter 29
8, SLIggested Draft Definitions
9. Newport Beach Ordinance 2011-2
10, Newport Beach Municipal Code Sectiorts 5.25, 5.2 8, 5.3 220,48.090, 2'0.45.030
11. "Got Nig
,htlife Article," ICIMA press, PM Magazine November 2010
12—Defmition of ABC Licenses
DISTRI 3UTION:
Plarining Commission
Scott Sc=an, Police Chief
Jessica Von Borck,: Economic Vitality Manager
WRR:ct
N-,'IDEVJC RHORTS 201 IS 22 TC—PC Entertaimunt ABP Study Session final.doc
POLICY REGULATING THE CONSUMPTION AND
SERVICE OF ALCOHOLIC BEVERAGES
I. 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
Townresidents. 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 maintain the 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:
II. General policy
1. 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.
3. Entertainment in association with an eating or drinking establishment maybe 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 pen-nit in good standing allowed to serve
alcoholic beverages past the hours stated above may continue to operate under their existing
hours of operation.
ATTACHMENT 5
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 t6 the general public.
C. All establishments shall use an . employee training manual that- addresses
alcoholic beverage service consistent with the standards of the Californian
restaurant Association.
D. All licensed operators shall have and shall actively promote a designated
driver program such as complimentary non - alcoholic beverages for
designated drivers.
E. Taxicab telephone numbers shall be posted in a visible location.
6. The deciding body shall mare the following findings prior to approving an
application for conditional use permit to serve alcoholic beverages past 10PM:
A. Late night service will not adversely impact . adjacent residential
neighborhoods.
B. The applicant does not have -a history:of complaints. and non- compliance with
local ordinances ,or the Alcoholic- Beverage Policy.
C. The applicant.has demonstrated a..clear benefit to the community.
7. A meal is defined as a 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.
Town 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 evenings before
holidays, whichever is earlier, if late night bar service is available. Specific hours of
operation for each establishment are determined upon issuance of a conditional use
permit.
IV. Review Process
1. 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 issuance of a business license, surrounding /impacted
property owners shall be notified and any comments regarding the operation
of the business shall be solicited.
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 Gcatos
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 29,203 10 of the Zoning
Ordinance,
e. Pursuant to Section 29,20.315 of the Zoning Ordinance the Planning
Comiission may revoke or modify the conditional use permit if it finds that
sufficient grounds exist,
IV. Enforcement
All conditional -use permits issued to..establishments for alcoholic - beverage service on -site ._
shall be subject to Section 29-.20.318(b) of the Town Code authorizing the Town Manager
to take enforcement action if it is- detefmined that the sale of alcohol has become a nuisance
to the Town's public health, safety or welfare, Enforcement of section 29.20.318(b) of the
Town Code will be based on, but not limited to, the following factors;
The number and types of calls for service at or near the establishment that are a direct
result of patrons actions;
H. The number of•coniplaints received, from residents ad other citizens concerning the
operation of an establishment;
IIh The number of arrests for alcohol, drug, disturbing the peace, fighting and public
nuisance violation s. associated•with an establishment; , _•
IV. The number and kinds of complaints received from the State Alcoholic Beverage
Control office and-the County Health Department;
V. Violation of conditions of approval related to alcoholic 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: \DBV \SUZANNB \Council \Policies \2001 alcohol policy.wpd
i.