Desk Item1 NM F
COUNCIL AGENDA REPORT
DATE: MAY 5, 2015
TO: MAYOR AND TOWN COUNCIL
FROM: LES WHITE, INTERIM TOWN MANAGER
MEETING DATE: 05/05/15
ITEM NO: 12
DESK ITEM
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
REMARKS:
Attachment 6 contains recently received public comments. Attachment 7 contains revised draft
language for potential Town Code Amendments to the Chapter 29 (Zoning Ordinance) regarding
Service of Alcoholic Beverages to clean up typographical errors and inconsistent fonts. In
addition, this Desk Item responds to Council members' questions.
How many existing businesses will be required to modify their Conditional Use Permits
(CUPS) in order to take advantage ofpermitting live entertainment prior to 10:00 p.m.?
Of the existing 115 CUPs that do not specifically allow live entertainment, 35 would require
modifications to take advantage of the proposed allowance. In addition, only three of the
existing CUPs would not require modification in order to take full advantage of the proposed
allowance (Number One Broadway, Los Gatos Bar and Grill, and California Cafe). The
majority of the existing CUPs that permit live entertainment include restrictions on where,
when, and what type of music or entertainment is permitted. The most common restrictions
prohibit outdoor entertainment and or amplification.
2. Would a public hearing be required for the modifications?
A public hearing would be required for modification of an existing CUP. Current Town
Code would require modifications to be approved by the original approving body. An
alternative, the Town Council could consider the request modifications to be decided by
PREPARED BY: LAUREL PREVETTI
Assistant Town Manage Director of Co m Development
Reviewed by: N/A Assistant Town Manager Town Attorney N/A Finance
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MAYOR AND TOWN COUNCIL
SUBJECT: ALCOHOL AND ENTERTAINMENT
MAY 5, 2015
the Development Review Committee (DRC) or the Planning Commission (PC), respectively.
The draft Code language would be modified accordingly.
3. How much would modification of an existing CUP cost?
The current Town fee schedule (amended annually) would require a fee equal to 75% of the
current application fee based on the type of application:
• Minor restaurant CUP approved by the DRC: $2,986.67
• Major restaurant, no alcohol service approved by the Planning Commission:
$4,909.10
• Major restaurant with alcohol service approve by the Town Council $8,312.76
4. How many will want to modify their CUP and could we do a group public hearing to reduce
the cost?
At this point, the Town does not know how many businesses would be interested in making
the modification. Given the unique conditions within existing CUPS, a single, combined
hearing would be difficult. The deciding body may want to tailor the modified entertainment
condition to be internally consistent with other conditions in the CUP, and/or consider the
individual businesses on a case by case basis. If directed by the Town Council, staff could
identify streamlining and cost saving options that would also maintain the ability of the
public to provide testimony and participate in the process.
5. Clarify "inside an establishment" in proposed Section 3.70.015 Definitions.
"Inside an establishment" means within the perimeters of the business operation including
outdoor patios. As an alternative, the Council could direct that live entertainment can only
occur indoors.
6 Clarify "Director" in proposed Section 3.70.060(b) Suspension or revocation of permit.
"Director" means the Director of Community Development because the proposed procedure
involves the Planning Commission.
7. The draft language pertaining to alcoholic beverage service and entertainment contains
multiple references to compliance with the Town's noise standards without a specific
methodology for ensuring compliance. How can the Council be assured that the Town's
noise requirements will be met when they have not been in the past?
The Town's noise standards are currently enforced on a complaint basis. Each complaint is
investigated by the Town's Code Compliance Officer for daytime concerns or the Town's
newly filled, part time evening Community Service Officer (CSO). Staff has a calibrated
noise meter to measure the noise and take appropriate action to gain compliance. Pursuant to
Council direction last August, the Town first attempts compliance through communication
with the alleged violator. If compliance is not achieved, enforcement mechanisms are then
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MAYOR AND TOWN COUNCIL
SUBJECT: ALCOHOL AND ENTERTAINMENT
MAY 5, 2015
implemented including fines and other measures. Since fall 2014, most noise complaints
pertain to the use of gas powered leaf blowers or the calls of peafowl in the neighborhoods.
In the Council's consideration of the draft language, the Council could specify a
methodology for noise compliance; require businesses to install noise meters at key doors
and /or windows and report the noise readings; or direct other approaches to address this
issue.
8. The proposed language for alcoholic beverage service in Section 29.20.181(b) identifies
nuisance as a basis for enforcement. Typically, nuisance is a very high threshold and
difficult to establish. What other thresholds could be identified as the basis for enforcement?
The proposed language defines nuisance for purposes of enforcement of alcoholic beverage
service by listing five specific parameters in Section 29.20.181(b) such as number and types
of calls for service. The Council could chose to add further specificity by identifying a
minimum number of calls for services, arrests, complaints, or other violations.
9. The proposed language for alcoholic beverage service with respect to meal service in Section
29.20.192(a)(1)(c) and —(d) are inconsistent with each other and also with Section
29.29.192(a)(3).
The draft language in Attachment 7 represents the recommendations of the Ad Hoc
Committee. The Committee discussed "modernizing" how people enjoy alcoholic beverages
without requiring a meal. The Council can direct clarifications to specify a meal requirement
or make other modifications for consistency and clarity.
Attachments (Previously received with May 5 2015 Staff Renort):
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
Attachment received with Addendum:
5. Public comment
Attachment received with this Desk Item:
6. Public comment
7. Revised draft language for potential Town Code Amendments to the Chapter 29 (Zoning
Ordinance) regarding Service of Alcoholic Beverages
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May 4, 2015
Town of Los Gatos
110 E. Main St.
Los Gatos, CA 95030
To: Ms. Laurel Prevetti, Community Development Director
CC: Mr. Les White, Town Manager
Honorable Planning Commission
Honorable Town Council
Re: Alcohol and Entertainment Policy
Dear Ms. Prevetti,
Since its inception, Rootstock Wine Bar has always been interested in providing
elements of live entertainment to its customers, whether it be an acoustic guitar performance,
or a Jazz trio, or any other suitable entertainment art form that would increase the enjoyability
for our customers when visiting the establishment. At the time of application for our
conditional use permit, it was our understanding that it would not be recommended for us to
ask for live entertainment to be permitted, and that further the Alcohol and Entertainment
policy would be reviewed and at some time in the future it may be prudent to pursue a live
entertainment permit.
We have closely followed the process the staff and elected officials have taken to revise
this policy. We are pleased that what is being proposed is much simpler than what was
originally presented, however even given the nature of the proposed language indicating that if
an applicant for a CUP modification is not at risk for the provisions of the CUP other than the
restrictions on entertainment being affected, we still do not understand why the Town Council
cannot take action to simultaneously amend all provisions of all CUPS in the central business
district that prohibit live entertainment as opposed to doing it on a case by case basis. The
Town Council should take a blanket action to modify all provisions in CUPS in the central
business district that currently state that live entertainment is not allowed to be amended to
read "ENTERTAINMENT: Live entertainment is permitted before 10pm." Anyone wanting live
entertainment after 10pm would be subject to having to have their CUP amended as well as
attaining an entertainment permit (if that process is implemented) as suggested. The CUP
modification process is costly to the applicants, who are primarily small businesses, as well as
prohibitive in that some applicants may not clearly understand the process or want to take the
time to go through it.
217 N Santa Cruz Ave Unit B Los Gatos, CA 95030
(408) 356.2300 Fax (408)356.2338 Attachment 6
Los Gatos is suffering. We are suffering from stiff competition from neighboring
municipalities that have embraced things such as live entertainment and have found ways to
navigate similar challenges that currently prohibit change in our beloved downtown. We need
to be able to inject vibrancy into the Town and bring back customers. We think one of the best
ways to do that would be to allow live entertainment and make the process as easy as possible.
Individual CUP modification is too lengthy and complicated a process and will bog down
Planning Commission and Town Council agendas that should be filled with items of greater
concern. We support swift action by the Town Council to begin to allow live entertainment
before 10pm for all as early as summer 2015.
Thank you,
Joey McCarthy
Jim Foley
Owners
Rootstock Wine Bar
DRAFT LANGUAGE REGARDING SERVICE OF ALCOHOL
6 See. 29.20.181. — Compliance review and enforcement
(a) Conditional Use Permits are vested with a specific property and may be subject to new
ownership or operation. To assist new owners or operators with an existing Conditional Use
Permit, the Town shall:
(1) Provide the conditions of approval attached to the Conditional Use Permit for the location
at the time of application for a business license and or a Certificate of Use and
Occupancy.
(2) When a complaint is received staff shall review the operation of the business to determine
whether there is a violation of the Conditional Use Permit.
(3) If there are violations of the Conditional 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.
(4) Pursuant to Section 29.20.315 the Planning Commission may revoke or modify the
Conditional Use Permit if it finds that sufficient grounds exist.
(b) All Conditional Use Permits issued to establishments with on -site alcoholic beverage service
shall be subject to Section 29.20.310 of the Town Code authorizing the Town Manager or
designee to take enforcement action if it is determined that the service of alcohol has become
a nuisance to the Town's public health, safety or welfare. Implementation of Section
29.20.3 10 of the Town Code shall be based on, but not limited to:
(1) The number and types of calls for service at or near the establishment that are a direct
result of patrons' actions;
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Attachment 7
(2) The number and types of complaints received and addressed through the Town's Code
Compliance process concerning the operation of an establishment;
(3) The number of arrests 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) Violations of conditions of approval related to alcoholic beverage service.
• Sec. 29.20.191. — Conditional Use Permits for service of alcoholic beverages — Purpose
and Intent.
(a) This section shall govern establishments that serve alcoholic beverages on -site, including but
not limited to: restaurants, bars, wine bars and wine and /or beer tasting establishments or
tastings provided in conjunction with other commercial operations.
(b) Appropriate service and consumption of alcoholic beverages contributes to the vitality of Los
Gatos and its variety of quality establishments. Parameters for alcoholic beverage service are
necessary to limit the impact of this privilege on the community. As such, alcoholic
beverage service shall be limited to 10:00 p.m. daily unless specific findings can be made by
the deciding body.
(c) The service of alcoholic beverages, with or without meals, is a discretionary privilege to be
determined on a case by case basis through the Town's permitting process. The standards of
review in Section 29.20.192 are intended to balance the protection of residential
neighborhoods in close proximity to commercial districts and still maintain the viability and
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customer service of commercial centers in which restaurants and other businesses have an
essential role. Establishments with limited or no food service are discouraged.
(d) The Town Council may approve a Conditional Use Pen-nit to serve alcoholic beverages based
on the merits of the application and subject to the requirements in Section 29.20.192.
See. 29.20.192. - Conditional Use Permit applications for service of alcoholic beverages
— Standards of Review.
(a) When reviewing an application for a Conditional Use Permit or modification to a Conditional
Use Permit to serve alcoholic beverages, the deciding body shall consider the following
factors in addition to those required by Section 29.20.190.
(1) The type of alcohol establishment. Unless approved by the deciding body, applications
for restaurants with alcohol service shall comply with the following:
a. If a separate bar is present within the restaurant it shall occupy no more than 20
percent of the total floor area dedicated to dining.
b. Bar areas shall have the same hours as that of the restaurant.
c. Meal service must be provided at all times when alcohol service is available.
d. Meal service must be available to patrons sitting at the bar.
(2) Any increase in bar seating or floor area is considered an intensification of use (Section
29.20.200) and requires approval by the deciding body.
(3) Unless approved by the deciding body, alcohol service is permitted only with a meal.
With the following exception:
a. Restaurants may provide alcoholic beverages to waiting patrons in designated waiting
or bar areas only.
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(4) Entertainment:
a. In association with an eating or drinking establishment or incidental to other uses
(e.g. art gallery) entertainment may be allowed pursuant to the standards and permit
process contained in Chapter three article seven of the Town Code.
b. Entertainment prior to 10:00 p.m. is permitted unless specifically restricted through
the Conditional Use Permit by the deciding body.
c. As provided in Section 3.70.020 (c) if a Conditional Use Permit which is in good
standing restricts Live. Entertainment, the Conditional Use Permit may be modified to
permit appropriate Live Entertainment without modification of the remaining
conditions.
(5) Hours of operation: Specific hours of operation are determined by the deciding body.
Alcoholic beverage service shall be restricted to:
a. 10:00 p.m. unless the deciding body finds that the applicant does not have a history of
complaints or non - compliance and that the use will not adversely impact adjacent
residential neighbors. If granted, hours past 10:00 p.m. may not exceed:
i. 11:00 p.m. Sunday through Thursday, except for holidays and /or evenings before
holidays, and;
ii. 1:00 a.m. Friday, Saturday, holidays and /or evenings before holidays.
b. An existing establishment with a Conditional Use Permit in good standing with
allowance to serve alcoholic beverages past the hours stated above may continue to
operate under its existing hours of operation.
c. Doors and windows may not be left open after 10:00 p.m.
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(6) Any establishment serving alcoholic beverages shall be subject to the following
conditions:
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) 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 informs patrons that alcoholic beverages are not allowed outside the
restaurant seating area.
(b) Proposals for new alcohol service within any establishment or a change to existing alcohol
service shall be reviewed by the Planning Commission. The Commission will make a
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recommendation to the Town Council and the Town Council shall have final review
authority.
Sec. 29.20.193. Conditional Use Permit applications for service of alcoholic beverages —
Exceptions.
(a) Alcoholic beverage service ancillary to other uses (e.g., art galleries and retail) that occurs
less than once a month and complies with all State requirements does not require a
Conditional Use Permit.
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