Staff Report
PREPARED BY: MONICA RENN
Economic Vitality Manager
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Community Development
Director, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
TOWN COUNCIL REPORT
MEETING DATE: 04/03/2018
ITEM NO: 08
DATE: MARCH 22, 2018
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: ADOPT A RESOLUTION TO RESCIND RESOLUTION 2001-106, THE TOWN’S
ALCOHOLIC BEVERAGE POLICY, AS RECOMMENDED BY THE POLICY
COMMITTEE
RECOMMENDATION:
Adopt a resolution to rescind Resolution 2001-106, the Town’s Alcoholic Beverage Policy, as
recommended by the Policy Committee.
BACKGROUND:
In 1994, the Town Council adopted a Policy Regulating the Consumption and Service of
Alcoholic Beverages (Alcoholic Beverage Policy) which sets forth parameters for establishments
serving alcohol and provides a process for reviewing applications proposing alcohol
service. The Town last amended the Alcoholic Beverage Policy in 2001 (Attachment 1).
As the commercial market and consumer tastes evolved, the Town began receiving an increase
in requests for new business models that are designed to sell and serve alcohol with and
without meals in a format that is unlike the traditional standalone bar format that the Policy
intends to discourage, including establishments such as wine tasting businesses, wine bars, and
craft beer/spirits tasting rooms. In addition, many current businesses were requesting the
ability to add entertainment and modify the service of alcoholic beverages to address these
current trends. The Town Council directed staff to revise the Alcoholic Beverage Policy to
address these considerations.
PAGE 2 OF 5
SUBJECT: ADOPT A RESOLUTION TO RESCIND RESOLUTION 2001-106, THE TOWN’S
ALCOHOLIC BEVERAGE POLICY
APRIL 3, 2018
BACKGROUND (cont’d):
This item was discussed at the April 7, 2014 Town Council meeting at which time staff
presented 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 for the
Alcohol and Entertainment Policy and appointed then Mayor Steven Leonardis and former
Council Member Joe Pirzynski. The Ad Hoc Committee was asked to consider:
1. Removing the requirement for a separate entertainment process;
2. Adding or modifying definitions as patrons dine today;
3. Defining the intensification of use when these establishments are actually used
versus by peak hour trips and how those consequences are addressed;
4. Developing a responsive complaint process including response ti me frames from
staff;
5. Installing noise devices that monitor and may be used to address noise
complaints;
6. Modifying Section 5 of the existing Policy 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
7. Requiring modification of a Conditional Use Permit (CUP) versus a separate
application in the context of existing Policy.
This Ad Hoc Committee met multiple times in 2014 to address the items identified by the
Council direction, evaluate policy alternatives, and consider the practical implementation of a
new and/or revised Policy. On October 21, 2014, the staff presented the Ad Hoc Committee’s
recommendations to the full Council. The following motion was passed by the Council (4-1.
Then Vice Mayor Marcia Jensen voted no):
Move ahead with the recommendations of the Ad Hoc Committee by directing staff to
convert the proposed resolutions into the form of ordinances and returning to Council to
confirm the final words. Specifically, the ordinances should incorporate all the changes,
modifications, and corrections included in the Desk Item and discussed at the meeting, such
as clarifying the definitions restaurant with a separate bar, wine bar, and other terms;
fixing the errors; and reorganizing the “Change in Ownership” and “General Comments”
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SUBJECT: ADOPT A RESOLUTION TO RESCIND RESOLUTION 2001-106, THE TOWN’S
ALCOHOLIC BEVERAGE POLICY
APRIL 3, 2018
BACKGROUND (cont’d):
sections under the “Review Process for Establishments Requesting Service Alcoholic
Beverages.”
Since October 2014, the Alcoholic Beverage Policy has been discussed at several meetings and
study sessions and has been on the Council’s Strategic Priorities for years before being
combined with the other Economic and Community Vitality items in late 2017.
At its February 15, 2018 meeting, the Policy Committee reviewed a list of policies and
regulations that are currently in place for new and existing businesses, and those items
previously discussed in public meetings without action. These items were prioritized for further
Policy Committee review. One broad topic of the Committee’s consideration is how the Town
defines and permits businesses selling food and beverages, including the Town’s Alcoholic
Beverage Policy.
DISCUSSION:
On March 15, 2018 the Policy Committee listened to public testimony, asked questions of the
Interim Police Chief, discussed the Town’s Alcoholic Beverage Policy, and considered either
modifying or rescinding it. The Committee observed that the Policy has many elements that are
not in alignment with the current commercial market and the Town’s other policies and
procedures, and unnecessarily duplicate the laws enforced by the State of California’s Alcohol
Beverage Control (ABC). After its consideration of the elements of the Alcoholic Beverage
Policy, the Policy Committee recommends to the full Council that the Policy be rescinded.
The rescission of this Policy would not change the current process requirements by the Town
for a Conditional Use Permit CUP) or the State’s ABC license requirements. Pursuant to the
Town’s Municipal Code, all businesses applying for the sale or service of alcohol would continue
to be decided by the Town Council, with a recommendation from the Planning Commission.
Each application for a new or modified food and beverage establishment would still be subject
to a set of conditions approved by the Town Council that include hours of operation, hours of
alcohol service, and other provisions as appropriate to ensure the business operates
responsibly and respectfully within the Los Gatos community. In other words, the Town would
continue to have the ability to regulate the specific business to ensure it met the Town
Council’s objectives.
The ABC license application process would continue to be required in addition to the Town’s
CUP process, which requires approval from the Town before ABC will issue the permit. ABC
works in concert with the Town and will not initiate the application process until the Town has
provided the approved CUP. Following the Town’s approval, ABC thoroughly reviews the
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SUBJECT: ADOPT A RESOLUTION TO RESCIND RESOLUTION 2001-106, THE TOWN’S
ALCOHOLIC BEVERAGE POLICY
APRIL 3, 2018
DISCUSSION (cont’d):
application on a local level, including a background check and an investigation of any history of
alcohol-related violations of the applicant. Then, the local office completes its investigation and
evaluation by forwarding the application and its recommendation for approval or denial to the
State ABC office in Sacramento for a second complete review, including a 30-day waiting period
to accept formal protests of the new license.
ABC also evaluates each application for the concentration of establishments with the same
license type and requires additional documentation or waiting periods depending upon the
concerns with overconcentration of ABC licenses. ABC also ensures that the proposed location
for the sale of alcohol meets their requirements for barriers, service location, and alcohol type
(beer and wine versus distilled spirits). As an example of ABC concentration oversight, staff was
informed that there is currently a moratorium in Los Gatos on Type 21, Off-Sale General
licenses, which allow beer, wine, and distilled spirits to be sold for off-site consumption only, as
in grocery or liquor stores.
With each ABC license, the licensee is granted privileges based on the license type. Along with
these privileges, the ABC has strict penalties for ABC violations that include fines, suspensions,
and revocation for non-compliance. ABC licensed establishments are subject to both
undercover/unannounced and scheduled inspections, and enforcement operations by ABC
officers and local law enforcement.
Attachment 2 provides documents prepared by the ABC that illustrate the most common types
of ABC licenses and their basic privileges, as well as a reference to the State’s application
process, and disciplinary actions and penalties assessed for non-compliance.
The Town also addresses non-compliance of CUPs for establishments selling alcohol as needed.
This process is in place through the Town Code and does not rely on the Alcoholic Beverage
Policy for implementation. If complaints are received regarding an establishment with alcohol
service, staff works directly with the business owner to address the concerns. All CUPs may
also be brought forward for modification or revocation at any time if there are valid and
verified concerns with the sale, service, or consumption of alcohol taking place at the
establishment.
CONCLUSION:
Given that the Town Code and ABC provide regulations and review processes consistent with
Council objectives for establishments with alcohol beverage service, and that much of the
current Alcoholic Beverage Policy is outdated, the Policy Committee is recommending the
rescission of the Town’s Alcoholic Beverage Policy (see Attachment 3).
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SUBJECT: ADOPT A RESOLUTION TO RESCIND RESOLUTION 2001-106, THE TOWN’S
ALCOHOLIC BEVERAGE POLICY
APRIL 3, 2018
CONCLUSION (Cont’d):
If there are specific elements that the Council would like to continue to address through a
replacement alcohol policy, Council may wish to direct the Policy Committee to consider and
recommend a new, streamlined policy that includes specific elements. If this is the case, the
Council is encouraged to identify the specific issues that should be addressed in an updated
policy.
COORDINATION:
The report was coordinated between the Town Attorney’s and Town Manager’s Offices, and
the Community Development Department.
ENVIRONMENTAL ASSESSMENT:
There is no possibility that the project would have a significant impact on the environment;
therefore, the project is not subject to the California Environmental Quality Act [Section
15061(b)(3)].
Attachments:
1. Resolution 2001-106, Alcoholic Beverage Policy
2. ABC documents relating to the provisions and process
3. Draft resolution to rescind Resolution 2001-106, Alcohol Beverage Policy