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Alcohol and Entertainment Policy1owN o MEETING DATE: 10/21/14 ITEM NO: I M.Y I COUNCIL AGENDA REPORT DATE: OCTOBER 15, 2014 TO: MAYOR AND TOWN COUNCIL FROM: GREG LARSON, TOWN MANAGER ROBERT SCHULTZ, TOWN ATTORNEY SUBJECT: REPORT FROM THE COUNCIL AD HOC COMMITTEE ON ALCOHOL AND ENTERTAINMENT POLICY. A. ADOPT A RESOLUTION TO AMEND THE COUNCIL POLICY REGULATING THE CONSUMPTION AND SERVICE OF ALCOHOLIC B. ADOPT A RESOLUTION TO ESTABLISH A COUNCIL POLICY REGULATING LATE NIGHT ENTERTAINMENT. RECOMMENDATION: I. Adopt the resolution amending the Council Policy Regulating the Consumption and Service of Alcoholic Beverages (Attachment 1); 2. Adopt the resolution creating a Council Policy Regulating Late Night Entertainment (Attachment 2); and 3. Direct staff to determine if a new fee is needed or if an existing fee adequately covers the costs of processing Entertainment Permits. BACKGROUND: In 1990, the Town Council adopted a Policy Regulating the Consumption and Service of Alcoholic Beverages (hereafter Alcoholic Beverage Policy) which describes the Town's expectations for establishments serving alcohol and to provide a process for reviewing applications proposing alcohol service. The Town last amended the Alcoholic Beverage Policy in 2001. The current Alcoholic Beverage Policy states, "Entertainment in association with an eating or drinking establishment may be allowed if standards and a permit process are adopted." PREPARED BY: LAUREL PREVETT��'GiJ Assistant Town Marta er /Director of Community Development Reviewed by: N/A Assistant Town Manager own Attorney _Finance N: \DEV \TC REPORTS\2014 \ABP and Entertainment Policies Report Revised.docx Reformatted: 5/30/02 PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: ALCOHOL AND ENTERTAINMENT POLICY OCTOBER 15, 2014 BACKGROUND (cont'd): After the Town received requests to serve and sell alcohol with or without meals, establish entertainment uses, and modify the regulations for the service of alcoholic beverages to address current trends, the Town Council directed staff to revise the Alcoholic Beverage Policy to address these considerations. The Town Council's 2014 -16 Strategic Goals include review and revise Town Policy related to the of alcohol and entertainment. As discussed and documented in the Staff Report to the Town Council heard at its April 7, 2014 meeting, the Town went through a public process to obtain input on potential modifications to the Alcoholic Beverage Policy and the creation of an Entertainment Permit process. On April 7, 2014, staff presented the Town Council with a proposed ordinance to create an Entertainment Permit and to amend the Alcoholic Beverage Policy. In response, the Town Council decided to create an Ad Hoc Committee on Alcohol and Entertainment Policy, and appointed Mayor Steven Leonardis and Council Member Joe Pirzynski. The Committee was asked to: 1. Consider removing the requirement for a separate entertainment process; 2. Consider adding or modifying definitions as patrons dine today; 3. Consider what it means for an intensification of use when these establishments are actually used versus by peak hour trips and how those consequences are addressed; 4. Consider how best to develop a responsive complaint process; 5. Consider time limits on response from staff or the police department; 6. Consider noise devices that are available so the existing ordinance may be used to address noise complaints; 7. Consider how Section 5 of the existing policy maybe modified for: a. How many and what types of complaints trigger enforcement; b. Whether fines would be appropriate; c. What point would consideration of revoking the permit be reached; and 8. Consider modification of a Conditional Use Permit (CUP) versus a separate application in the context of existing policy. Since April, the Ad Hoc Committee met multiple times to address the issues raised in the Council direction, evaluate policy alternatives, and consider the practical implementation of new and/or revised policy. This report contains the results of the Committee's work as well as recommendations for Council consideration. PAGE MAYOR AND TOWN COUNCIL SUBJECT: ALCOHOL AND ENTERTAINMENT POLICY OCTOBER 15, 2014 DISCUSSION: A. Approach The Ad Hoc Committee approached consideration of all of the Council's direction from the perspective of the positive characteristics of the Town and its offerings. Los Gatos has a unique brand of sophistication that supports active, healthy lifestyles and provides family friendly amenities, good shopping, and great restaurants. Appropriate service and consumption of alcoholic beverages and the enjoyment of entertainment contributes to the vitality of Los Gatos. For these reasons, the Ad Hoc Committee focused on updating the Alcoholic Beverage Policy to reflect contemporary dining and social activities, and decided that a separate policy was needed to regulate only "late night entertainment" which is proposed to be defined as occurring after 10 p.m. B. Update the Policy Regulating the Consumption and Service of Alcoholic Beverages Attachment 3 contains an underline and strikeout version of the proposed updated Alcoholic Beverage Policy. Major features of the Policy revision include: • Continue to discourage bars, clarify discouraging late night entertainment, and strongly discourage nightclubs, ultra lounges, or similar establishments offering late night alcoholic beverage service, including bottle service. • Removal of the community benefit provision. • Clarify definitions of meal service, separate bar area, wine bar, wine tasting, and brew house. • Identify other operational requirements to minimize disturbance to neighbors. C. Establish Policy Regulating Late Night Entertainment The Ad Hoc Committee Council direction included consideration of removing the requirement for a separate entertainment process. In this consideration, the Committee decided that a separate Policy and process would be useful for entertainment after 10 p.m. (see Attachment 2). Entertainment is defined as including amplified music, live performance, dancing, DJ, karaoke, jam sessions, and/or other related activities. Prior to 10 p.m., live music and other entertainment add vibrancy to Los Gatos and should be enjoyed without any permitting requirements. If an establishment has an existing Conditional Use Permit that prohibits entertainment, then a Conditional Use Permit modification would be PAGE 4 MAYOR AND TOWN COUNCIL SUBJECT: ALCOHOL AND ENTERTAINMENT POLICY OCTOBER 15, 2014 DISCUSSION (cont'd): needed. It is reasonable for the Town to regulate entertainment after 10 p.m. due to the increased potential for neighborhood disturbances, noise, disruptive behavior, and other possible concerns. If adopted, the Policy proposes an annual Entertainment Permit to ensure compliance with operational and other standards. The Permit is subject to a public hearing before the Planning Commission with appeal to the Town Council. Enforcement and revocation would occur similar to Conditional Use Permits per the Town Code. D. Detailed Responses to Council Direction 1. Consider removing the requirement for a separate entertainment process. The Ad Hoc Committee considered and determined that a separate process for late night entertainment was warranted for the reasons stated above. 2. Consider adding or modifying definitions as patrons dine today. The proposed amendment to the Alcoholic Beverage Policy adds and modifies definitions accordingly. 3. Consider what it means for an intensification of use when these establishments are actually used versus by peak hour trips and how those consequences are addressed. Bar area restrictions can be more effectively enforced based on floor area instead of seats. The larger policy issue regarding parking and its relationship to seats should be taken up separately by the Town Council. 4. Consider how best to develop a responsive complaint process. 5. Consider time limits on response from staff or the police department. 6. Consider noise devices that are available so the existing ordinance may be used to address noise complaints. In early August 2014, the Council provided direction regarding the approach for the Town's Code Compliance services. This direction includes responding to complaints within two business days, hiring a permanent Code Compliance Officer who can provide consistent service, hiring a part time Community Service Officer to monitor late night activities and noise, and instituting other operational changes with the enhanced staffing. Consider how Section 5 of the existing policy may be modified for: a. How many and what types of complaints trigger enforcement; b. Whether floes would be appropriate; c. What point would consideration of revoking the permit be reached. PAGE 5 MAYOR AND TOWN COUNCIL SUBJECT: ALCOHOL AND ENTERTAINMENT POLICY OCTOBER 15, 2014 DISCUSSION (cont'd): Based on the evaluation by the Ad Hoc Committee, the Policy did not require additional clarifications on enforcement. 8. Consider modification of a Conditional Use Permit (CUP) versus a separate application in the context of existing policy. A CUP may need to be modified if it expressly prohibits entertainment and /or the service of alcoholic beverages. The modification could run concurrently with the Entertainment Permit. CONCLUSION: The Ad Hoc Committee believes that together, together, these two Policies create a common sense approach to the service of alcoholic beverages and late night entertainment in the Town. The Committee welcomes the Council's comments, questions, and discussion. ENVIRONMENTAL ASSESSMENT: It has been determined that there is no possibility that this project will have a significant impact on the environment; therefore, the project is not subject to the California Environmental Quality Act [CEQA Guidelines Section 15061 (b)(3)]. FISCAL IMPACT: Proposed Section 3.70.025 of the Town Code allows Town Council to set fees for processing land use and development applications. If the Council adopts a resolution creating a Policy Regulating Late Night Entertainment, staff should be directed to evaluate the current fee structure to determine if a new fee is needed or if an existing fee adequately covers the cost of an annual permit. Attachments: 1. Resolution amending the Policy Regulating the Consumption and Service of Alcoholic Beverages 2. Resolution creating a Policy Regulating Late Night Entertainment 3. Underline /Strikeout Version of the Updated Policy Regulating the Consumption and Service of Alcoholic Beverages RESOLUTION 2014- RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS ADOPTING REVISIONS TO THE POLICY REGULATING THE CONSUMPTION AND SERVICE OF ALCOHOLIC BEVERAGES AS A COUNCIL POLICY AND REPEALING RESOLUTION 2001 -106 WHEREAS, Los Gatos has a unique brand of sophistication that supports active, healthy lifestyles and provides family friendly amenities, good shopping, and great restaurants; and WHEREAS, appropriate service and consumption of alcoholic beverages contributes to the vitality of Los Gatos; and WHEREAS, the Town Council desires to balance the regulation of alcoholic beverage service and protection of residential neighborhoods with the goal of maintaining a vibrant and successful Downtown and commercial areas throughout Los Gatos; and WHEREAS, the Town Council originally adopted a Policy Regulating the Consumption and Service of Alcoholic Beverages (hereafter Alcoholic Beverage Policy) in 1994; and WHEREAS, the Town Council last revised the Alcoholic Beverage Policy in 2001 by adopting Resolution 2001 -106 ; and WHEREAS, the Town Council desires to update the Alcohol Beverage Policy to meet the current needs of the community. NOW, THEREFORE, BE IT RESOLVED, that Town Council of the Town of Los Gatos (1) repeals Resolution 2001 -106; and (2) adopts the Town of Los Gatos Policy Regulating the Consumption and Service of Alcoholic Beverages as a Council Policy as presented below. ATTACHMENT 1 POLICY REGULATING THE CONSUMPTION AND SERVICE OF ALCOHOLIC BEVERAGES I. Purpose Los Gatos has a unique brand of sophistication that supports active, healthy lifestyles and provides family friendly amenities, good shopping, and great restaurants. Appropriate service and consumption of alcoholic beverages contributes to the vitality of Los Gatos. This policy provides parameters for alcoholic beverages service, particularly addressing late night service when alcohol related incidents are most likely to occur and when the disturbances to Town resident is least tolerable. The service of alcoholic beverages, with or without meals, 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 and customer service of our commercial centers in which restaurants and other businesses have an essential role. Hours of operation and types of activities 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 Council may approve a conditional use permit to serve alcoholic beverages based on the merits of the application and subject to the following requirements. H. General policy The Town shall continue to strongly discourage new applications for bars. 2. The Town shall continue to discourage applications for late night (after 10 p.m.) entertainment establishments serving alcoholic beverages, and strongly discourage nightclubs, ultra lounges or similar establishments typically offering late night alcohol service including bottle service. Entertainment in association with an eating or drinking establishment or incidental to other uses (e.g. art gallery) may be allowed pursuant to the standards and permit process contained in a separate Late Night Entertainment Policy. 4. Alcoholic beverage service for new conditional use permit applications or applications for modifications of a conditional use permit shall not be allowed: A. After 11 p.m. Sunday through Thursday, except for holidays and evenings before holidays. B. After 1 a.m. Friday, Saturday, holidays or evenings before holidays. 5. 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. 6. 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 California 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 or other ride service telephone numbers shall be posted in a visible location. 7. The deciding body shall make the following findings prior to approving an application for conditional use permit to provide late night service of alcoholic beverages past 10 p.m.: A. Late night service will not adversely impact adjacent residential neighborhoods B. The applicant at this or other locations does not have a history of complaints and non - compliance with local ordinances or the Alcoholic Beverage Policy. 8. Alcoholic beverage service in approved outdoor seating areas may be permitted if adequate separation is provided to limit access to the alcoholic beverage service area to patrons of the establishment only. The Town Manager or designee shall review and determine the adequacy of proposed improvements. The separation shall have visible signage that clearly inform patrons that alcoholic beverages are not allowed outside the restaurant seating area. III. Specific Policy 1. Restaurants Without Separate Bars: A. Alcoholic beverages may only be served to patrons waiting for their table and with meals. 2. Restaurants With Separate Bars: Restaurants requesting separate bar areas shall have the separate bar area be ancillary and subordinate to the primary purpose of serving food and should comply with the following criteria: A. Unless otherwise approved by the deciding body, the bar area is restricted to having no more than 20 percent of the total floor area for service to patrons allowed for the establishment. B. The bar cannot stay open past the hours of operation of the restaurant. C. Full meal service must be provided at all times when alcohol service is available. A meal is defined as a combination of food items selected from a menu (breakfast, lunch or dinner). Hot or cold snacks, such as popcom, peanuts, pretzels, relish trays, etc., are not meals. D. Alcoholic beverage service in the dining room area is only allowed in conjunction with food service. Additionally, the dining room area may not be converted to bar area. An area for dancing can be approved with a conditional use permit and must be consistent with the Late Night Entertainment Policy. E. Meal service must be available to patrons in the bar area. F. Specific hours of operation are determined by the deciding body subject to this policy. G. Doors and windows may not be left open after 10:00 p.m. 3. Other Establishments Serving Alcohol This Policy acknowledges that alcoholic beverages may be served in other types of establishments and that the Town's conditional use permit process provides the necessary controls to regulate them. These establishments include but are not limited to banquet halls, wine bars (defined as alcoholic beverage offerings limited to wine and beer), wine tasting at wineries (defined as wineries offering one ounce pour per taste), brew house (defined as alcoholic beverage offerings limited to beer), beer tasting at breweries (defined as breweries offering two ounces per taste). Alcoholic beverage service associated with other uses (e.g., art galleries and retail) that occurs less than two times per year do not require a CUP, and must meet all State requirements. 4. Bars Bars offer only alcoholic beverage service. A. Specific hours of operation are determined by the deciding body subject to this policy. B. Doors and windows may not be left open after 10:00 p.m. IV. Review Process for Establishments Requesting the Service of Alcoholic Beverages 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 Department shall contact the new business owner to make them aware of the conditions of approval attached to the use permit for the location. B. One year following issuance of a business license, surrounding/impacted property owners shall be notified and any comments regarding the operation of the business shall be solicited. C. If the Director Community Development Department 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. 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. V. Alcoholic Beverage Service 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 or designee 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 29.30.310(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: 2. The number of complaints received from residents and other citizen concerning the operation of an establishment; 3. The number of arrest for alcohol, drug, disturbing the peace, fighting and public nuisance violations associated with an establishment; 4. The number and kinds of complaints received from the State Alcoholic Beverage Control office and the County Health Department; 5. 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. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 21" day of October 2014, by the following vote: COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA \ -DI V R1 SOS '014- 4koholPOlici -Ro,, 1C 1021- 14_docs This Page Intentionally Left Blank RESOLUTION 2014- RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS ADOPTING A COUNCIL POLICY REGULATING LATE NIGHT ENTERTAINMENT WHEREAS, Los Gatos has a unique brand of sophistication that supports active healthy lifestyles and provides family friendly amenities, good shopping, and great restaurants; and WHEREAS, the enjoyments of entertainment prior to 10 p.m. contributes to the vitality of Los Gatos; and WHEREAS, the Town Council desires to balance the regulation of late night entertainment and protection of residential neighborhoods with the goal of maintaining a vibrant and successful Downtown and commercial areas throughout Los Gatos; and WHEREAS, the Town Council desires to adopt a Council Policy regulating late night entertainment to meet the current needs of the community. NOW, THEREFORE, BE IT RESOLVED, that Town Council of the Town of Los Gatos adopts the Town of Los Gatos Council Policy Regulating Late Night Entertainment as presented below: POLICY REGULATING LATE NIGHT ENTERTAINMENT I. Purpose Los Gatos has a unique brand of sophistication that supports active, healthy lifestyles and provides family friendly amenities, good shopping, and great restaurants. The enjoyment of entertainment prior to 10 p.m. contributes to the vitality of Los Gatos. For the purposes of this policy, entertainment is defined as consisting of one or more of the following: amplified music, live performance, dancing, DJ, karaoke, jam sessions, and /or other related activities. ATTACHMENT 2 Late night entertainment (after 10 p.m.), 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 late night entertainment when disturbances to Town residents are least tolerable. Late night entertainment 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, vibrancy, and vitality of the Town's commercial centers. Hours of operation and types of activities may be regulated based on an establishment's proximity to residential neighborhoods, the concentration of entertainment establishments in an area, or for other reasons that affect the quality of life in Los Gatos. The deciding body may approve a conditional use permit to allow late night entertainment based on the merits of the application and subject to the following requirements. The deciding body may approve an entertainment permit subject to this policy. II. General policy 1. An existing establishment with a conditional use permit (CUP) that requires compliance with the Town's Entertainment Policy and desires to obtain an Entertainment Permit would not be subject to changes in its existing conditional use permit as long as the establishment remains in good standing. 2. An existing establishment with a CUP that expressly prohibits entertainment would need to obtain an amendment to the conditional use permit to add an allowance for entertainment. The intent is not to reconsider other conditions in the CUP unless requested by the applicant. The Entertainment Permit could be considered with the CUP amendment. 3. This policy is intended to work with the Town's other policies and procedures, including but not limited to, its land use requirements and its policies pertaining to alcoholic beverage service. III. Review and Enforcement Processes for Establishments with Late Night Entertainment 1. Proposals involving late night entertainment shall be subject to an annual Entertainment Permit in addition to meeting the Town's land use requirements. The Entertainment Permit must be renewed annually to ensure the establishment is meeting the following operational and other standards. a. The establishment is responsible for ensuring that noise from the entertainment meets the Town's noise ordinance. b. The establishment is responsible for encouraging patrons to be respectful of adjacent public and private property after they leave the establishment and enter adjacent parking lots or nearby public streets by not participating in disruptive 2 behavior. Such behavior includes but is not limited to criminal activity, vandalism, loud talking, public urination, and revving of vehicle engines. c. The Permit may include conditions beyond these standards based on issues raised during the permit process. 2. Late night entertainment (after 10 p.m.) is subject to a public hearing before the Planning Commission, with appeal to the Town Council. These proposals may require the preparation of a Noise Study at the applicant's expense, in order to determine the acceptability of the proposed use and /or sound attenuation or mitigation measures that would be required in order to allow the use consistent with the Town's Noise Ordinance. Additionally, approved Entertainment Permits may be conditioned by the approval body to require the operator of the business to provide at his or her expense on -going noise monitoring, annual permit compliance reviews, or the preparation of regular noise reports at the discretion of the approval body. The Late Night Entertainment 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. a. The first Entertainment Permit issued for an establishment should be considered under "Public Hearings" on the agenda of the deciding body. b. The second and subsequent renewal of the Entertainment Permit for the establishment may be considered under "Consent Calendar" on the agenda of the deciding body if there are no compliance concerns. 3. Entertainment Permits issued by the Planning Commission or Town Council shall be enforced and revoked similar to conditional use permits per the Town Code Section 29.30.310(b) authorizing the Town Manager or designee to take enforcement action if it is determined that the late night entertainment establishment has become a nuisance to the Town's public health, safety or welfare. Enforcement of Section 29.30.310(b) of the Town Code will be based on, but not limited to the following factors: a. The number and types of calls for service at or near the establishment that are a direct result of patrons' actions: b. The number of complaints received from residents and other citizen concerning the operation of an establishment; C. The number of arrest for alcohol, drug, disturbing the peace, fighting and public nuisance violations associated with an establishment; d. The number and kinds of complaints received from the State Alcoholic Beverage Control office and the County Health Department; e. Violation of conditions of approval related to late night entertainment. 3 PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 21"day of October 2014, by the following vote: COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA N`. D F % RI SOS 2014 1. w Night F ntcitainmcait.docx POLICY REGULATING THE CONSUMPTION AND SERVICE OF ALCOHOLIC BEVERAGES I. Purpose Los Gatos has a unique brand of sophistication that supports active. health lifestyles and provides family friendly amenities, good shopping, and great restaurants. Appropriate service and consumption of alcoholic beverages contributes to the vitality of Los Gatos. The side is —This policy provides parameters for alcoholic beverages service, particularly addressing late night service when alcohol related incidents are most likely to occur and when the disturbances to Town resident is least tolerable. The service of alcoholic beverages, with or without meals, past 'r �� 10 PN4 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 and customer service of our commercial centers in which restaurants and other businesses have an essential role. Hours of operation_qnd types of activities 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 deem ding bedvCouncil may approve a conditional use permit to serve alcoholic beverages based on the merits of the application and subject to the following requirements. H. General policy 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 late night (after 10 P.m.) entertainment establishments serving alcoholic beverages, and strongly discourage nightclubs, ultra lounges or similar establishments typically offering late night alcohol service including bottle service. 3. Entertainment in association with an eating or drinking establishment or incidental to other uses (e.g. art gallery) may be allowed 4- pursuant to the standards and a- permit process are adeptedcontained in a separate Late Night Entertainment Policv. 4. Alcoholic beverage service for new conditional use permit applications or applications for modifications of a conditional use permit shall not be allowed: A. After 11 1'- M —p.m. Sunday through Thursday, except for holidays and evenings before holidays. ATTACHMENT 3 Town of Los Gatos Alcoholic Beverage Policy Page 2 of 5 B. After 1 AM -a.m. 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. 6. Any establishment serving alcoholic beverages shall be subject to the following: A. Uniformed privately provided security guards may be required in or around the premises by the Chief of Police if alcohol related problems recur that are not resolved by the licensed owner. B. At the discretion of the Chief of Police, periodic meetings will be conducted with representatives from the Police Department for on -going employee training on alcoholic beverage service to the general public. C. All establishments shall use an employee training manual that addresses alcoholic beverage service consistent with the standards of the Californian Restaurant Association. D. All licensed operators shall have and shall actively promote a designated driver program such as complimentary non - alcoholic beverages for designated drivers. E. Taxicab or other ride service telephone numbers shall be posted in a visible location. The deciding body shall make the following findings prior to approving an application for conditional use permit to serve - provide late night service of alcoholic beverages past 10 P-- Mp.m.: A. Late night service will not adversely impact adjacent residential neighborhoods B. The applicant at this or other locations does not have a history of complaints and non - compliance with local ordinances or the Alcoholic Beverage Policy. Town of Los Gatos Alcoholic Beverage Policy Page 3 of 5 1)-.8. Alcoholic beverage service in approved outdoor seating areas may be permitted if adequate separation is provided to limit access to the alcoholic beverage service area t;...., publie areas only to patrons of the establishment only. -F,re,'',�a�s deterfni —b�-iThe Town Manager or designee shall review and determine the adequacy of proposed improvements. The separation shall have visible sitmage that clearly -, � , inform patrons that alcoholic beverages are-is not allowed outside the restaurant seating area. I11. Specific Policy 1. Restaurants Without Separate Bars: A. Alcoholic beverages may only be served to patrons waiting for their table and with meals. 2. Restaurants With Separate Bars: Restaurants requesting separate bar areas shall have the separate bar area be ancillary and subordinate to the primary purpose of serving, food and should comply with the follo\n ine criteria: A. Unless otherwise approved by the deciding, body, the bar area is restricted to having, no more than 20 percent of the total seat-ingfloor area for service to patrons allowed for the establishment. B. The bar cannot stay pen past the hours of operation of the restaurant. C. Full menu4e dmeal service must be provided at all times when alcohol service is available. A meal is defined as a combination of food items selected from a menu (breakfast, lunch or dinner). Hot or cold snacks, such as popcorn, peanuts, pretzels. relish trays, etc., are not meals. D. Alcoholic beverage service in the dining, room area is only allowed in conjunction with food service. Additionally, the dining, room area may not be converted to bar area. An area for dancing can be approved with a conditional use permit and must be consistent with the Late Nig,ht Entertainment Policy. E. Meal service must be available to patronsperm4ted in the bar area. F. Specific hours of operation are determined by the deciding body subject to this policy. G. Doors and windows shall eleseamay not be left open after 10:00 %Mp.ln..' .......,,..., b,,..:: c'.ge .,cr,.icc is pct- Ta7tccb ir' r the idining - area - only - hi-cvn.Jviiciicm with meal serviee. Meal sep.iee .hall he :1..7.le at least ,tii elasing of I 1 DAA Town of Los Gatos Alcoholic Peverage Policy Page 4 of 5 3. Other Establishments Serving Alcohol This Policv acknowledges that alcoholic beverages may be Served in other types of establishments and that the Town's conditional use permit process provides the necessary controls to regulate them. These establishments include but are not limited to banquet halls wine bars (defined as alcoholic beverage offerings limited to wine and beer) wine tasting at wineries (defined as wineries offering one ounce pour per taste) brew house (defined as alcoholic beverage offerims limited to beer) beer tasting at breweries (defined as breweries offering two ounces per taste). Alcoholic beverage service associated with other uses (c g, art galleries and retail) that occurs less than two times per year do not require a CUP and must meet all State requirements. 4. Bars Bats offer only alcoholic beverage service. A Specific hours of operation are determined by the deciding body subject to this policy, B. Doors and windows may not be left open after 10:00 p.m. IV. Review Process for Establishments Requesting the Service of Alcoholic Beverages 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 Department 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. UMUMUMM 3. Other Establishments Serving Alcohol This Policv acknowledges that alcoholic beverages may be Served in other types of establishments and that the Town's conditional use permit process provides the necessary controls to regulate them. These establishments include but are not limited to banquet halls wine bars (defined as alcoholic beverage offerings limited to wine and beer) wine tasting at wineries (defined as wineries offering one ounce pour per taste) brew house (defined as alcoholic beverage offerims limited to beer) beer tasting at breweries (defined as breweries offering two ounces per taste). Alcoholic beverage service associated with other uses (c g, art galleries and retail) that occurs less than two times per year do not require a CUP and must meet all State requirements. 4. Bars Bats offer only alcoholic beverage service. A Specific hours of operation are determined by the deciding body subject to this policy, B. Doors and windows may not be left open after 10:00 p.m. IV. Review Process for Establishments Requesting the Service of Alcoholic Beverages 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 Department 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. Town of Los Gatos Alcoholic Beverage Policy Page S of S C. If the Director Community Development Department 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. 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 29.20.310 of the Zoning Ordinance. E. Pursuant to Section 29.20.315 of the Zoning Ordinance the Planning Commission may revoke or modify the conditional use permit if it finds that sufficient grounds exist. V. INL. Alcoholic Beverage Service 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 or dcsi (_ncc 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 29.30.310(b) of the Town Code will be based on, but not limited to the following factors: 1. The number and types of calls for service at or near the establishment that are a direct result of patrons' actions: 2. The number of complaints received from residents and other citizen concerning the operation of an establishment; 3. The number of arrest for alcohol, drug, disturbing the peace, fighting and public nuisance violations associated with an establishment; 4. The number and kinds of complaints received from the State Alcoholic Beverage Control office and the County Health Department; 5. Violation of conditions of approval related to alcoholic beverage service. The Alcoholic Beverage Policy is not to be construed to be a right of development. The Town retains the right of review and approval (or denial) of each project based on its merits. N: \DEV \ABP & Live Entertainment\ad hoc 10.9.14 option Ldocx This Page Intentionally Left Blank