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PC Min - 07/09/2013CITY OF CAMPBELL PLANNING COMMISSION MINUTES 7:30 P.M. The Planning Commission meeting of July 9, 2013, was called to order at 7:30 p.m., in the Council Chambers, 70 North First Street, Campbell, California by Chair Reynolds and the following proceedings were had, to wit: JULY 9, 2013 CITY HALL COUNCIL CHAMBERS TUESDAY ROLL CALL Commissioners Present Chair: Vice Chair: Commissioner: Commissioner: Commissioner: Commissioner: Philip C. Reynolds, Jr. Paul Resnikoff Brian Brennan Pam Finch Elizabeth Gibbons Bob Roseberry Commissioners Absent Staff Present: APPROVAL OF MINUTES None Community Development Director Associate Planner: City Attorney: Recording Secretary: Paul Kermoyan Daniel Fama William Seligmann Corinne Shinn Motion: Upon motion by Commissioner Roseberry, seconded by Commissioner Resnikoff, the Planning Commission minutes of the meeting of June 25, 2013, were approved as submitted. (4-0-0- 2; Commissioners Brennan and Gibbons abstained) COMMUNICATIONS There were no communications items. Campbell Planning Commission Minutes for July 9, 2013 Page 2 AGENDA MODIFICATIONS OR POSTPONEMENTS There were no agenda modifications or postponements. ORAL REQUESTS There were no oral requests. PUBLIC HEARINGS *** Chair Reynolds read Agenda Item No. 1 into the record as follows: 1. PLN2013- Public Hearing to consider the application of Banquets to 152/153 Barbecues, LLC, for an Administrative Planned Development Banquets to Permit (PLN2013-152) and a Modification (PLN2013-153) to a Barbecues, previously approved Conditional Use Permit to allow late night LLC operation and live entertainment associated with an existing restaurant (Little Lou's BBQ) on property located at 2455 S. Winchester Boulevard in the P-D (Planned Development) Zoning District. Staff is recommending that the project be deemed Categorically Exempt under CEQA. Planning Commission action final unless appealed in writing to the City Clerk within 10 calendar days. Project Planner: Daniel Fama, Associate Planner Mr. Daniel Fama, Associate Planner, presented the staff report as follows: • Reported that the applicant's tenant space is located in the Campbell Plaza Shopping Center, on Winchester Boulevard south of Budd Avenue. The site is zoned P-D (Planned Development) and the General Plan land use designation is for mixed-use. • Advised that a beer and wine permit was approved by the Planning Commission through a Conditional Use Permit in 2008. A Modification to the Use Permit was approved in 2010 as well as an Administrative Planned Development Permit to expand into the adjacent tenant space. • Said that the operating hours are from 11 a.m. to 10 p.m. • Explained that the proposed modifications at this time are the extension of hours between 6 a.m. to 12 a.m., including one hour before and after business hours. Additionally live entertainment is proposed including banjo, jazz and light rock until 11 p.m. • Said that live entertainment can be supported with a restaurant use when it is ancillary to meal service and as long as it prohibits cover charges, standing room areas and dancing. • Added that the Police Department will also need to issue its Live Entertainment Permit once the Planning Commission takes its action. • Said that the hours up to midnight are consistent with the Downtown Campbell Alcohol Policy. Campbell Planning Commission Minutes for July 9, 2013 Page 3 • Advised that a condition of approval allows the Community Development Director to modify hours if substantiated complaints are received. Commissioner Resnikoff asked staff if any changes to capacity are proposed. Planner Daniel Fama said that the capacity remains at 69 as was approved in 2010. Commissioner Resnikoff asked if the extended hours have been reviewed by Campbell Police. Planner Daniel Fama said yes and that PD has no issue when the proposed hours fall within the Policy requirements. Chair Reynolds opened the Public Hearing for Agenda Item No. 1. He disclosed that he had a conversation with the applicant just prior to the start of this evening's meeting. Kurt Anderson, Representative for the Applicant: • Explained that he is speaking on behalf of the applicant. • Stated that they have a couple of concerns regarding the conditions of approval. • Reported that they will come back at a later date to ask for outdoor seating and occasional opportunities to barbecue a pig in the parking lot. • Raised the prohibition of moving tables to create open area, saying that seems pretty restrictive. • Opined that people should be able to dance if so moved to. • Asked that there be modification to the condition to allow some dancing. • Said that other than that they are happy with the conditions and seek approval. Chair Reynolds closed the Public Hearing for Agenda Item No. 1. Commissioner Brennan: • Reported that he stopped by the restaurant as well as having chatted with Planner Daniel Fama about the Police question. • Admitted that he had not been to the restaurant before. • Advised that he goes to the Safeway at this center a lot but his wife will not go there alone after dark . • Stated that having another entity in that center is of concern. • Stated that he didn't want to blame everyone else in that center based on impacts of one use (Off the Hook) but he is concerned about the potential for an interactive effect. • Admitted that this expansion may actually make people feel more comfortable with this center. This needs to be looked at with a close eye. • Said that he values other peoples' perspectives as well. Commissioner Resnikoff: • Said that Commissioner Brennan makes a valid point although he has not experienced the same feeling about this center. Campbell Planning Commission Minutes for July 9, 2013 Page 4 • Said that the concept of reconfiguring the use of the floor space is what is causing concern here. • Cautioned that the intent of this business must be that it is a restaurant versus a bar. • Expressed concern that this could develop into another bar. • Added that it is not that dancing is disallowed but rather that this use cannot become another bar in this center. • Stated that the concern over the potential for this center morphing at night is a valid point to raise. Commissioner Finch: • Reported that she has been to Little Lou's and she considers it a family-style restaurant. • Added that she likes music with food as that equals fun. • Admitted that she shares Commissioner Brennnan's concern and agrees that the shopping center has some issues. • Stated that she is in favor of this request per staff's recommendations. Commissioner Roseberry: • Said he has some of the same sentiments. • Added that this is an interesting shopping center but it's not the Downtown. • Agreed that there are some safety concerns. • Pointed out that the Light Rail station is close by and it's the end of the line. • Expressed concern over creeping changes to a Use Permit. • Added that this applicant is saying that they don't agree with what they have started and they want to come back for more. • Reminded that the CUP runs with the land and not with the operator. This location may not always be Little Lou's. That could be of concern later. Commissioner Gibbons: • Said that this is a sports/family restaurant where music will be ancillary to eating. • Added that clearing the floor could change the character of the restaurant. • Agreed with the concerns raised. • Reiterated that the CUP runs with the property. • Advised that she has been to Little Lou's and lives in the nearby neighborhood. She has enjoyed meals and the environment there. It's a place that families can bring their kids. It is not a bar atmosphere. • Stated that she is okay with light entertainment that is acoustic and not amplified. • Suggested adding "acoustic" to the description of entertainment allowed. • Said that the applicant wants to stay open until midnight daily with music until 11 p.m. daily. • Suggested modifying Condition 6 to allow the Community Development Director to "Immediately" reduce hours from midnight to 11 p.m. upon substantiated complaints. • Assured that she wants to help them be successful. Campbell Planning Commission Minutes for July 9, 2013 Page 5 Commissioner Resnikoff: • Expressed concern about creeping changes to a CUP. • Pointed out that they now want to add outdoor seating and outdoor barbecuing of a pig to this restaurant's uses. • Added that he is not against the proposed changes to Condition 6 giving the Director the option of changing hours as long as it is subject to a subsequent return to the Planning Commission for additional review. Commissioner Reynolds: • Said that he has been to Little Lou's several times with friends and with groups. • Added that this is a wonderful business that is a contributor to the City. • Admitted to concerns about the overall center itself but that may require a discussion about security for the entire site. He would hate to put the burden of the entire shopping center on one merchant. The problems should be shared among all merchants in that center. • Stated that he is comfortable with the condition of approval authorizing the Director to reduce hours if it becomes necessary. • Agreed that it is important to remember that the CUP runs with the property and not with the specific business owner. • Suggested that it would have been nice if the possibility of relocating seating to open up floor area had initially been included in this application so it could have been considered together. • Suggested including that component with their future requests. • Stated that at this time the Commission is looking at what information has been provided. As such, he is comfortable with this request. • Agreed that this is a restaurant and not a bar. It is a dining establishment. • Reminded that the Police Department is comfortable. • Concluded that he will support this request as it is good for our City. Commissioner Brennan: • Stated that he appreciates Chair Reynold's feedback. • Said that staying open to 10 p.m. equals a family restaurant. • Added that he supports this application without any amendments to include dancing. • Said that he supports the changes to allow "acoustic" music as well as to give the Director the option to immediately reduce hours if it becomes necessary. Commissioner Gibbons: • Said that she is very comfortable. • Added that she would like to give the applicant to 11 p.m. If so, she is willing to make a motion. Commissioner Brennan: • Said that he prefers the hours remain unchanged to 10 p.m. However, if the majority agrees to the later hour he is willing to go along with that. Chair Reynolds re-opened the Public Hearing for Agenda Item 1. Campbell Planning Commission Minutes for July 9, 2013 Page 6 Kurt Anderson, Applicant's Representative: • Suggested just to take dancing off the table with this evening's request. • Stated that one cannot have acoustic music only. • Said that the City should let the operator manage the need for amplification. • Added that as to the hours, they are just asking for one more hour. • Assured that this change will be an improvement to this center. • Supported leaving the request exactly as it is. Chris Bracher, Resident on Lovell Avenue: • Said that he is a member of a band that has played at Lou's. • Agreed that this is a good and wholesome family restaurant. • Stated that his own band is acoustic but has amplification for the singer or to make announcements. • Pointed out that the owner should be able to set the mood of his establishment. • Said that as to seating capacity, the restaurant actually loses seating capacitywhen a band is brought in taking up some of the floor space. Director Paul Kermoyan: • Clarified that there have been bands at this restaurant without issuance of the necessary permits. • Added that this became a Code Enforcement issue and led to why we are here this evening. • Reminded that the operational hours proposed are between 6 a.m. and midnight. Mr. Lance Wagner, Applicant and Business Owner, Little Lou's Barbecue: • Said that his restaurant is a family environment. He has 4 and 6-year-old sons. • Added that he does not want to own a "bar". He has done that already. • Stated that he also wants a place for people to play music. • Agreed with Commissioner Brennan that there have been issues at the center. • Reported that there is security on site between 8 p.m. and midnight with a private security patrol car passing through every hour. • Advised that he is hearing that the bar (Off the Hook) may be leaving the center soon. • Explained his need for additional hours. If people want to stop by for dinner after a movie, he loses dining time if the music were to start too early in the evening. Some people want to be done dining prior to music starting. • Reported that sales have doubled in the last year. Things are going really well. Chair Reynolds re-closed the Public Hearing for Agenda Item 1. Commissioner Gibbons: • Reiterated that the CUP runs with the property and not with the specific operator. That fact cannot be left out of the Commission's review. • Added that conditions are imposed to control the activities allowed. • Suggested allowing amplified music up to 11 p.m. Campbell Planning Commission Minutes for July 9, 2013 Page 7 • Proposed a tiered approval with live entertainment allowed up to 11 p.m., Thursday, Friday, Saturday and Sunday. If after six months there are no problems, the Director could extend that to midnight and then to every day of the week if that is successful. • Suggested a limit to 11 p.m. • Added that when this comes back for consideration of outside seating, this could be reconsidered to allow up to midnight. Commissioner Roseberry asked staff the nature of the Code Enforcement complaint. Was it a complaint for too much noise? Planner Daniel Fama explained that the complaint was for live entertainment without necessary approvals. He said that a warning notice was sent that the existing CUP did not allow for live entertainment and it would need to be modified to include it. Commissioner Resnikoff: • Said that he does not think this business is trying to change from a restaurant to a bar. • Suggested looking at dealing with the request for expanded hours from a different perspective. • Pointed out that if the Commission were to cut back now from what they are requesting, they are being penalized before there is a problem demonstrated. • Suggested flipping that concept and giving them the hours they seek and address it later when this applicant comes back to seek approval for outdoor seating. Director Paul Kermoyan said that there will not have been enough time that has passed to assess this approval by the time they come back. He added that Condition 5-k, the Noise condition, allows "immediate" modification of hours upon verified complaints. He added that there is no difference between amplified versus acoustic. Planner Daniel Fama said hours are considered as they pertain to noise impacts. He added that Condition 6 deals with other violations and activities other than noise. The bottom line issue is noise and the Director's immediate ability to reduce hours if it becomes necessary. Commissioner Roseberry said the Condition 6-c is a catch all. Commissioner Gibbons said that both Conditions 5-k and 6 would allow the Director to change hours immediately upon confirmation of a problem. Commissioner Resnikoff said he would support this application as staff proposes. City Attorney William Seligmann said that that only inpact that allows an immediate reduction in hours is noise. Commissioner Roseberry suggested changing Condition 6 to also allow an immediate reduction of hours. Campbell Planning Commission Minutes for July 9, 2013 Page 8 Motion: Upon motion of Commissioner Gibbons, seconded by Commissioner Resnikoff, the Planning Commission adopted Resolution No. 4107 approving an Administrative Planned Development Permit (PLN2013-152) and a Modification (PLN2013- 153) to a previously approved Conditional Use Permit to allow late night operation and live entertainment associated with an existing restaurant (Little Lou's BBQ) on property located at 2455 S. Winchester Boulevard, subject to the findings and conditions of approval as modified: • Modify Condition 6 to add, "... in the event of verified complaints received, the Community Development Director may immediately modify the hours of operation." by the following roll call vote: AYES: Brennan, Finch, Gibbons, Resnikoff, Reynolds and Roseberry NOES: None ABSENT: None ABSTAIN: None Chair Reynolds advised that this action is final unless appealed in writing to the City Clerk within 10 calendar days. *~* Chair Reynolds read Agenda Item No. 2 into the record as follows: 2. PLN2013-133 Public Hearing to consider the application of Spread Campbell, Spread LLC, for a Conditional Use Permit (PLN2013-133) to allow on Campbell, LLC and off-site beer and wine sales and late-night operation in association with a new restaurant (Spread Deli) on property located at 193 E. Campbell Avenue in the C-PD (Condominium/Planned Development) Zoning District. Staff is recommending that the project be deemed Categorically Exempt under CEQA. Planning Commission action final unless appealed in writing to the City Clerk within 10 calendar days. Project Planner: Daniel Fama, Associate Planner Mr. Daniel Fama, Associate Planner, presented the staff report as follows: • Reported that the subject tenant space is located within amixed-use building on E. Campbell Avenue between Second and Third Streets. The building contains residential condos above ground floor retail/restaurant establishments. The site is zoned C-PD, which allowed the creation of condo units that could be sold separately, while the commercial uses allowed fall within those of the C-3 (Central Business District) Zoning District. • Explained that the space was previously occupied by another restaurant, BYR of Belgium that was issued a beer and wine license by a former Community Development Director. BYR has since gone out of business. Campbell Planning Commission Minutes for July 9, 2013 Page 9 • Stated that the new restaurant is Spread Deli. It includes both on and off-site alcohol sales. However the existing beer and wine license for this location is only valid for on-site consumption. Off-site alcohol sales require a Conditional Use Permit. • Reported that the proposed hours are from 8 a.m. to 10 p.m. Sunday through Thursday and to 11 p.m. on Friday and Saturday. Spread Deli is now open but without off-site alcohol sales pending this CUP. • Reminded that with the C-3 Zone, there is an exemption in place that allows restaurants to sell beer and wine without requiring a CUP but for on-site consumption only. • Said that the proposed use will be consistent with standards. Food service will be available at all times. • Added that the Planning Commission considers issues such as over-concentration of alcohol serving establishments; potential for becoming a nuisance or adverse impact on the area; creating a demand on City services; and consistency. • Stated that staff is recommending conditions of approval that include provision of any future floor plan changes and that this establishment retains the look and feel of a restaurant. Additionally, alcohol sales may not exceed food sales. • Explained that off-site alcohol sales from this restaurant (Spread Deli) would be prohibited on those days in which large events are being held on the streets of Downtown, including Oktoberfest and Boogie on the Bayou, which include alcohol sale and consumption within the public right-of-way under a special and separate ABC permit. • Recommended approval of a resolution approving this Conditional Use Permit. Commissioner Resnikoff said that other applications have restricted the sale of off-site alcohol to cases rather than individual single-serve bottles. Why is this different? He also questioned allowing sale of alcohol as early as 8 a.m. Planner Daniel Fama said that they are proposing to sell individual bottles here and the sale of alcohol would be permitted during the entirety of their hours of operation. Chair Reynolds asked about managing unauthorized public drinking. Planner Daniel Fama explained that ABC requirements limit beer and wine consumed during an outdoor event such as Oktoberfest and Boogie to that sold by associated vendors to the event through a special ABC event license. Any unrelated off-site alcohol sales and consumption are prohibited during the time of that event. Chair Reynolds asked staff whether the City or ABC enforces that. Planner Daniel Fama said generally it is ABC. Chair Reynolds asked staff the reason behind the condition that alcohol sales not exceed food sales. Campbell Planning Commission Minutes for July 9, 2013 Page 10 Planner Daniel admitted that condition is somewhat redundant to an existing ABC requirements but this condition also makes future owners and/or operators of this CUP aware of this restriction. Commissioner Reynolds asked how it can be controlled if someone were to purchase beer here but consume it off site during a Downtown event. Director Paul Kermoyan said that enforcement is up to the business owner. He added that the City always has this as a standard condition since the State's regulations can always change. Planner Daniel Fama reported that Aqui's has door monitors during Downtown events. He added that this applicant already intends to completely exclude all off-site alcohol sales during the few Downtown events that occur. Commissioner Roseberry clarified that during events such as Oktobertest; a patron of this restaurant can order a beer and sit in the restaurant and drink it there but cannot buy it and leave the restaurant with it during a Downtown festival. Planner Daniel Fama said that is correct. Commissioner Resnikoff pointed out that with this condition of approval in the Conditional Use Permit the City can enforce this without having to wait for ABC to do so. Director Paul Kermoyan agreed. Planner Daniel Fama reiterated that it would prohibit any off-site sale of alcohol on those few festival days at all. Chair Reynolds opened the Public Hearing for Agenda Item No. 2. Jordan Trigg, Applicant: • Said that alcohol sales and consumption occurring on the public street during festivals in Downtown is via a special license issued by ABC to the Chamber of Commerce. • Assured that he would have enough in sales through on-site consumption and could easily forego off-site sales during the few annual Downtown events. • Advised that he is selling specialty beers that range in price between $6 and $80 per bottle as well as Northern California and Central Valley wines. Some of the beer for off-site sale is kept chilled while some is not. • Said that they would also sell deli meats, cheeses and salads for off-site consumption. • Said that per his ABC license, his percentage of alcohol sales cannot exceed 49.4 percent of gross sales. • Gave as an example his first six days of operation whereby 74.8 percent of sales were in food and 25.2 percent in alcohol. Campbell Planning Commission Minutes for July 9, 2013 Page 11 Commissioner Roseberry said that he fully understands the conditions and stated that he thought that Downtown Campbell really needed a deli. He asked the applicant how ABC would be enforcing this provision. Commissioner Finch asked if the calculations are based on gross sales or on volume. Jordan Trigg said it was based on gross sales. Commissioner Gibbons asked how this information will be reported to ABC. Jordan Trigg said that he must have 30 days' of sales records on hand at all times and make said information is immediately available to ABC on demand. Commissioner Gibbons asked the applicant if he would be willing to provide such records to the City periodically. Jordan Trigg said that would not be a problem. Commissioner Gibbons asked the applicant if he understands the conditions. Jordan Trigg said that ABC is even more restrictive than the City of Campbell. Chair Reynolds closed the Public Hearing for Agenda Item No. 2. Commissioner Finch: • Stated that she is impressed with this applicant. • Advised that she didn't initially like the idea of off-site sales from within the Downtown but this applicant makes her more comfortable with the idea. • Pointed out that ABC also checks what is going on with alcohol sales. • Admitted that she also understands that the Use Permit runs with the land and not the operator. • Said that the applicant has indicated his willingness to report sales percentages breakdowns between food and alcohol sales to the City as well. Commissioner Roseberry said it is great to have a deli in the Downtown. He suggested having similar language regarding immediacy of revocation of hours as the previous Agenda Item had added this evening if substantiated problems occur. Commissioner Resnikoff said that off-sale alcohol sales could be removed from the approval if problems result. Commissioner Gibbons: • Agreed. • Added that there has been good discussion and comments offered this evening. • Stated that staff has provided a very good report. • Admitted that offering off-site alcohol sales from the Downtown raised a big red flag for her. Campbell Planning Commission Minutes for July 9, 2013 Page 12 • Said that there are already off-site alcohol sales with wine bars. • Cautioned that we don't want a package store Downtown. • Agreed that this applicant has ahigh-end product and he already has a license from ABC for off-site sales. This is sort of a "done deal" already. • Said that it is in the best interest to allow this to go forward with added language to allow the Director to change conditions if it becomes necessary. • Said that she supports this with modifications to Conditions 4 and 8. • Admitted there is an obligation to go forward. Director Paul Kermoyan said that Condition 4 could allow the modification of hours and/or the complete discontinuation of off-site beer and wine sales. Commissioner Resnikoff said that the condition should allow "immediate" modification to these conditions to address the cause of the complaints. Commissioner Roseberry suggested a motion to adopt a resolution subject to the added condition requiring the submittal of semi-annual documentation of the break down of alcohol versus food sales. Chair Reynolds said he has a problem with that proposed condition due to concerns of work load on staff. He added that he is comfortable with staff having the ability to request sales breakdown information on demand like ABC can. Commissioner Resnikoff asked staff if they have a problem with that requirement. Director Paul Kermoyan said that the question this raises is what are we looking for? How should it be monitored? He said securing these updates routinely would have to be scheduled and if not provided draft correspondence to chase down reports not received. Commissioner Resnikoff said that the information is already going to ABC Commissioner Roseberry: • Clarified that the information goes to ABC only if they happen to ask for it. • Suggested that perhaps a copy of whatever report is provided to ABC could also be provided to the City. Commissioner Resnikoff: • Stated that it may not be necessary to condition the monitoring of food versus alcohol sales. • Said that this applicant would not "mess" with ABC. • Reminded that the updates to ABC are on demand only and not routine. Chair Reynolds said that he would be uncomfortable with that level of micro-managing by the City. Campbell Planning Commission Minutes for July 9, 2013 Page 13 Commissioner Gibbons said this is uncharted territory with off-sale beer and wine from a restaurant that also has an on-sale alcohol license. Director Paul Kermoyan said that it is important to consider how to enforce the conditions of approval and not to impose a condition that cannot properly be enforced. Motion: Upon motion of Commissioner Roseberry, seconded by Commissioner Resnikoff, the Planning Commission adopted Resolution No. 4108 approving a Conditional Use Permit (PLN2013-133) to allow on and off-site beer and wine sales and late-night operation in association with a new restaurant (Spread Deli) on property located at 193 E. Campbell Avenue, subject to the findings and conditions of approval as modified, by the following roll call vote: AYES: Brennan, Finch, Gibbons, Resnikoff, Reynolds and Roseberry NOES: None ABSENT: None ABSTAIN: None Chair Reynolds advised that this action is final unless appealed in writing to the City Clerk within 10 calendar days. *** REPORT OF THE COMMUNITY DEVELOPMENT DIRECTOR Director Paul Kermoyan offered the following updates in addition to his written report: • Announced that a Study Session on Freeway-Oriented Signs would be held after the regular July 23~d Planning Commission meeting. • Said that a Study Session has been held with Council on the update of the entire Sign Ordinance. • Added that there is a more immediate demand and need to review the regulations for freeway-oriented signs associated with pending projects so Council directed the Planning Commission to go forward with this section separately from the rest of the Sign Ordinance Update. Chair Reynolds welcomed Commissioner Gibbons back to service after a few months' away. Campbell Planning Commission Minutes for July 9, 2013 Page 14 ADJOURNMENT The Planning Commission meeting adjourned at 9:02 p.m. to the next Regular Planning Commission Meeting of July 23, 2013. SUBMITTED BY: Corinne Shinn, Recording Secretary APPROVED BY: ATTEST: