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Staff Reporttow" o MEETING DATE: 05/05/15 .h. I ��B�IiRtOr' COUNCIL AGENDA REPORT ITEM NO: I DATE: APRIL 28, 2015 TO: MAYOR AND TOWN COUNCIL FROM: LES WHITE, INTERIM TOWN MANAG ROBERT SCHULTZ, TOWN ATTORNE SUBJECT: DRAFT TOWN CODE LANGUAGE FOR POTENTIAL ORDINANCES REGARDING ALCOHOLIC BEVERAGE SERVICE AND ENTERTAINMENT TO INCORPORATE THE RECOMMENDATIONS OF THE ALCOHOL AND ENTERTAINMENT AD HOC COUNCIL COMMITTEE RECOMMENDATION: Accept the draft Town Code language for potential ordinances regarding alcoholic beverage service and entertainment to incorporate the recommendations of the Alcohol and Entertainment Ad Hoc Council Committee and direct staff to proceed with the Town Code amendment process for the ordinances. BACKGROUND: The Town began work on amending the existing 2001 Alcoholic Beverage Policy (ABP) while researching implementation of a new entertainment permit process in 2011, as directed by the Town Council. The initial intentions of the changes to the ABP were to implement discussion and direction from the Town Council received during previous application reviews and to address changes in curTent dining trends. The Town Council continued to communicate this as a priority by including it in the Council's 2014 -16 Strategic Goals. Town Planning Staff met with neighborhood groups, residents, and businesses throughout the initial process in 2012 and 2013. Based on the initial direction from the Town Council and the feedback received; staff drafted revisions to the ABP and the new Entertainment Ordinance for consideration by the Planning Commission. Along with additional revisions and considerations for the Town Council, the Planning Commission forwarded a recommendation of approval to the Town Council in 2013. The Council considered the changes on April 7, 2014. PREPARED BY: LAUREL PREVETTI Px Assistant Town Manager /Director of Community Development Reviewed by: N/A Assistant Town Manager 200own Attorney N/A Finance N: \DEV \TC REPORTS\2015WIcohol and Entertainmmt.docx Reformatted: 5/30/02 PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: ALCOHOL AND ENTERTAINMENT APRIL 30, 2015 In response to the proposed changes the Town Council decided to create an Ad Hoc Committee on Alcohol and Entertainment, 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 to address how 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 responses from staff or the police department; 6. Consider installing 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 the existing policy. On October 21, 2014, the Town Council discussed the Ad Hoc Committee's recommendations on the eight items and reviewed a proposed update to the Alcoholic Beverage Policy and a new Late Night Entertainment Policy. Attachment 1 contains the staff report and draft policies from the October 21, 2014 meeting. Attachment 2 includes the Desk Item to correct a Town Code reference. At the meeting, the Council directed staff to incorporate the proposed changes into potential Town Code Amendments to be reviewed by the Council prior to initiating the amendment process. These changes are discussed below. DISCUSSION: A. Alcoholic Beverage Service Attachment 3 contains draft Code language incorporating the Ad Hoc Committee's recommendations regarding the service of alcoholic beverages. Because all of the language is new, there are no underlines or strikeouts contained in the draft Code language. As staff prepared the draft, some elements of the proposed policy did not transfer well into proposed Code language. For example, the Code typically specifies activities that are or are not allowed, rather than "discouraged." For this reason, the draft language includes a purpose section to accommodate the objectives of the potential Code change. PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: ALCOHOL AND ENTERTAINMENT APRIL 30, 2015 In addition, when considering Code changes to reflect the proposed Policy, staff identified two areas to strengthen the Code and facilitate the implementation of the provisions, if adopted. • Remove specific definitions for various types of alcoholic beverage service establishments: While defining different kinds of establishments and providing limitations for each was part of the recommended changes to the Alcoholic Beverage Policy, such definitions may not meet future needs of the Town. By applying the Ordinance equally to all types of businesses which include the service of alcoholic beverages, each application can be evaluated on its own merit by the deciding body. • Incorporate a separate Compliance Review and Enforcement section pertaining to Conditional Use Permits (CUP): The draft language addresses reviewing CUPS for compliance and potential revocation for all CUPS. A separate section is proposed for CUPs that allow the service of alcoholic beverages. Additional review triggers address areas of concern relating specifically to alcohol related uses. B. Late Night Entertainment The Ad Hoc Committee recommendation included consideration of removing the requirement for a separate entertainment process. In this consideration, the Committee decided that a separate permit process would be useful for entertainment after 10 p.m. (see Attachment 1). Entertainment is defined as including amplified music, live performance, dancing, DJ, karaoke, jam sessions, and/or other related activities. 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. The draft Code language proposes an annual Entertainment Permit to ensure compliance with operational and other standards (see Attachment 4). Because all of the language is new, there are no underlines or strikeouts contained in the draft Code language. 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. COORDINATION: The preparation of this report was coordinated with the Economic Vitality Manager, Community Development Department, and the Town Attorney. ENVIRONMENTAL ASSESSMENT: The item is not a project under the California Environmental Quality Act (CEQA). If the Council initiates the Code amendment process for the proposals, the ordinance(s) are subject to CEQA and the necessary assessment would be provided to the Planning Commission and Town Council. PAGE 4 MAYOR AND TOWN COUNCIL SUBJECT: ALCOHOL AND ENTERTAINMENT APRIL 30, 2015 FISCAL IMPACT: Consistent with other permits, the Entertainment Permit should have a processing fee that covers the costs of evaluating and issuing the Permit. If Council initiates the Code amendment process for an Entertainment Permit, staff will examine the Town's current fee structure to determine if a new fee is needed or if an existing fee adequately covers the costs of processing Entertainment Permits. ALTERNATIVES: In addition to the staff recommendation, the Council may consider the following alternatives: 1. Modify the draft language to remove all references to restaurants with separate bars and require the same provisions and restrictions for all counter eating areas where alcohol is available. 2. Direct changes to the draft language and return to Council for its review prior to referring the proposed ordinances to the Planning Commission for its review and recommendation to the Town Council. Attachments: 1. October 21, 2014 Town Council Staff Report (including attachments) 2. October 21, 2014 Town Council Desk Item (including attachments) 3. Draft language for potential Town Code Amendments to the Chapter 29 (Zoning Ordinance) regarding Service of Alcoholic Beverages 4. Draft language for potential Town Code Amendments to Chapters 3 (Amusements) and 29 (Zoning Ordinance) regarding Entertainment