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PC Min - 02/23/2016CITY OF CAMPBELL PLANNING COMMISSION MINUTES 7:30 P.M. The Planning Commission meeting of February 23, 2016, was called to order at 7:30 p.m., in the Council Chambers, 70 North First Street, Campbell, California by Chair Dodd and the following proceedings were had, to wit: FEBRUARY 23, 2016 CITY HALL COUNCIL CHAMBERS TUESDAY ROLL CALL Commissioners Present Chair: Vice Chair: Commissioner: Commissioner: Commissioner: Cynthia L. Dodd Yvonne Kendall Pamela Finch Philip C. Reynolds, Jr. Donald C. Young Commissioners Absent: Staff Present: APPROVAL OF MINUTES Commissioner: Commissioner: Community Development Director: Senior Planner: Associate Planner: City Attorney: Ron Bonhagen Michael L. Rich Paul Kermoyan Cindy McCormick Daniel Fama William Seligmann Motion: Upon motion by Commissioner Finch, seconded by Commissioner Young, the Planning Commission minutes of the meeting of February 9, 2016, were approved as submitted. (4-0-2- 1; Commissioners Bonhagen and Rich were absent and Chair Dodd abstained) Campbell Planning Commission Minutes for February 23, 2016 Page 2 COMMUNICATIONS None AGENDA MODIFICATIONS OR POSTPONEMENTS Director Paul Kermoyan pointed out that two of the three agenda items on this evening's agenda are Zoning Text Amendments and one is a project with an applicant. He said the Commission may want to consider hearing that project item first and the Zoning Text Amendments after since there are people in the audience in attendance for the project. The Commission discussed this option and decided to hear Item 2 first and then Items 1 and 3. ORAL REQUESTS None CONSENT There were no consent items. PUBLIC HEARINGS *** Chair Dodd read Agenda Item No. 2 into the record as follows: 2. PLN2015-352 Public Hearing to consider the application of Lowen Castillo (CUP) for a Conditional Use Permit (PLN2015-352) and PLN2015-354 Administrative Planned Development Permit (PLN2015-354) (PMP) to allow establishment of a new 45-seat restaurant (Kalye PLN2015-355 Hits) with beer and wine service, outdoor seating, live (TRP) entertainment (no dancing), and "late-night" operational hours (11:00 PM public closing); and a Parking Modification Permit (PLN2015-355) to allow a reduction in the number of required parking spaces on property located at 2145 S. Winchester Boulevard in the P-D (Planned Development) Zoning District. Staff is recommending that this project be deemed Categorically Exempt under CEQA. Planning Commission decision 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. Campbell Planning Commission Minutes for February 23, 2016 Page 3 Director Paul Kermoyan added that when factoring Live Entertainment with a restaurant use, the Live Entertainment aspect should be ancillary to the restaurant use with tighter provisions due to proximity to adjacent residential uses. Chair Dodd asked if there were questions of staff. Commissioner Finch asked what the difference might be regarding amplification for live music versus for karaoke. She said that it seems there is no difference. Planner Daniel Fama pointed out that karaoke is not possible without amplification. Director Paul Kermoyan: • Said that Commissioner Finch makes a good point. • Added that the Planning Commission can discuss this further. • Stated that live music tends to become as loud as the musicians want it to be and depending upon which instruments are used there is a different level of noise/sound impact. • Offered that the Commission can decide to allow no amplification at all but just acoustical live entertainment (both live music and karaoke). Commissioner Kendall said that she notices nine high-top tables on the site plan and asked if those are being looked at as bar seating. Planner Daniel Fama replied that they are counted as bar seating. They are seats at which a customer can have a beer without being required to also order a meal. Commissioner Young referenced the stage in the corner and pointed out that corner is closest to the adjacent residential properties. Planner Daniel Fama said that is correct. Commissioner Finch said that it seems that 11 of 45 seats are high-top seats. Planner Daniel Fama agreed and said they represent 25 percent of the seats as is a I lowed . Commissioner Kendall asked how late the outdoor tables could be used. Planner Daniel Fama said 11 p.m. the same as the restaurant itself. Chair Dodd opened the Public Hearing for Agenda Item No. 2. Lowen Castillo, Applicant: • Reported that this will be their fourth restaurant. • Added that she loves the idea of opening up this restaurant in Campbell. It is a City with low crime and will be the "best place to be." • Advised that Filipinos love to sing karaoke. • Pointed out that there are currently no Filipino restaurants in Campbell. Campbell Planning Commission Minutes for February 23, 2016 Page 4 • Concluded that it will be good for them to establish in Campbell and to be in this community. Steve Gandy, Resident on Mission Way: • Said that Mission is a private street located adjacent on one side of this commercial building. • Added that he has been on Mission for 30 years. • Admitted that he had hoped that the businesses established in this new commercial center would not have a negative impact to them. • Said that there are three things he objects to: late hours, alcohol and live entertainment. • Pointed out that the street parking along Winchester is already widely utilized by patrons of Casa Lupe just a bit further up Winchester. • Added that it will be hard to manage karaoke and the live entertainment could disturb neighbors. • Said that he doesn't see alcohol service as a good fit and that this use could result in a decrease in property values. This is not the right fit for the neighborhood. Scott Plautz, Project Site Property Owner: • Reported that there have been challenges in finding tenants for this site. • Reminded that he was the first developer to conform to the Winchester Boulevard Master Plan. • Pointed out that he still has a completely vacant building and the parking restrictions in the area are his biggest problem in getting tenants. That includes Starbucks. He has been challenged in leasing this property. Right now this property is a liability rather than an asset. • Reminded that the site was formerly occupied by an old A&W restaurant and it used to draw transients as it became run down. • Suggested that the best way to manage live music is to establish a maximum decibel level. • Added that the location of the stage placement is deliberate in order to allow speakers to point towards Winchester rather than in the direction of adjacent residential neighbors. • Said that this will be a great restaurant for Campbell. They have been included on several Food Network programs. They started as a street food vendor. • Reminded that while the nearby Casa Lupe is a full service liquor establishment he purposely has restricted alcohol sales on his property to just beer and wine. • Advised that this is afamily-friendly and cultural business. Chair Dodd closed the Public Hearing for Agenda Item No. 2. Commissioner Finch: • Said that she is still concerned about amplification of karaoke music. • Said that she appreciates the fact that the speakers will be pointed away from the residential neighborhood. • Pointed out that the nearby Casa Lupe doesn't have enough parking. Parking is of concern but she has mixed feelings about how to fix parking. Campbell Planning Commission Minutes for February 23, 2016 Page 5 • Added that she hears Mr. Plautz's concerns about securing a tenant for this site. • Admitted that she is concerned about outdoor seating being utilized up to 11 p.m. • Concluded that she has no concrete decision right now. Commissioner Kendall: • Said that usually parking and noise issues jump out at her but she doesn't feel those concerns about this request. • Reminded that Winchester is a lively street already and this is going to be a family- style restaurant that can be given some live entertainment allowances but without amplification. Music should not be noticed from outside until a patron walks into the business. She's not that concerned about it. • Stated that parking along Winchester adds to the vibrancy of the area. This is the beginning of the renewal of that area. • Concluded that unless she hears something that is of concern she will be supporting this as it is proposed. Commissioner Young: • Expressed agreement with Commissioner Kendall. • Said he visited the site and found the distance between this commercial building and the neighborhood of concern. However the proposed outdoor seating would be situated along Winchester. • Added that he hopes the nearby utility box to this site will be sponsored and painted as part of the Civic Improvement Commission's public art project. • Said that this project is consistent with the Downtown Campbell Alcohol Policy. It does not represent an over-concentration. There will be no significant disturbances to the peace. • Added that perhaps a reduction in hours may make sense and suggested perhaps 10 p.m. instead of 11 p.m. Commissioner Reynolds: • Said that since his wife is Filipino he may be biased. • Said that in regards to noise concerns and parking, any sound can be directed where we want it to go. • Said that this proposal is consistent with a buffer zone between neighborhoods and commercial uses. • Warned that when one purchases a residence situated close to a commercial area one must be aware of the inherit possibility of noise. Once one is deeper into a residential neighborhood there is more of a buffer between the two uses. • Admitted that parking is of concern. This neighborhood has been plagued with parking impacts for several years now and some nearby neighborhoods have permit parking as a result. • Said that there are limits as to what can go onto this site and he is concerned that the future of other future tenant spaces on this site might be even more restricted. • Added that he doesn't want to create parking problems into adjacent residential neighborhoods such that those issues come to the attention of Council. • Stated that this will be a fine restaurant for Campbell. Campbell Planning Commission Minutes for February 23, 2016 Page 6 Commissioner Finch: • Said that she would need to be convinced that sound will not be a problem here. • Asked for a specific number of verifiable noise complaints as part of condition 6-n. • Added that she doesn't want to limit Mr. Plautz's ability to do business and find tenants for his building. • Pointed out that this corner of Winchester/Rincon is so much better looking with this new commercial building than it was before. • Said that her concerns remain potential for sound impacts and parking. Chair Dodd: • Pointed out that even with the deficit of six spaces for this use, the site still has the parking required to serve the rest of the site. Commissioner Finch: • Reminded that the street parking along this part of Winchester is already being utilized by patrons of nearby Casa Lupe. Director Paul Kermoyan pointed out that Casa Lupe existed prior. The City can't stand in the way of a business becoming successful. Commissioner Finch said it was unfortunate that Casa is not adequately parked on site. Director Paul Kermoyan: • Reminded that even before Casa Lupe was on that site another restaurant was there in the same tenant space. • Suggested addressing sound issue with Condition 6-f. • Added that the Commission could put a limit to entertainment hours to 10 p.m. Commissioner Young: • Referenced page 5 of the staff report which explains that without a Parking Modification, this restaurant would be limited to 27 seats, which would not be a viable number for success. • Pointed out that sound can be managed through building materials (including glass) to help reduce impacts of sound outside the building. • Added that there is an opportunity to control entertainment hours and/or to determine what is required to achieve a maximum decibel level for the five entertainment. • Concluded that he is comfortable with this application. Commissioner Kendall: • Pointed out that this site is actually not too close to the "Four C's" neighborhood that now has a parking permit program due to impacts of overflow parking from the La Valencia Apartments rather than from businesses along Winchester Boulevard. • Asked if the parking of Casa Lupe can be looked at in the future. • Said that limiting entertainment hours is a good idea and suggested also limiting the outdoor dining hours as well. Campbell Planning Commission Minutes for February 23, 2016 Page 7 • Suggested the installation of "No Loitering" signage at the back parking to prevent noise impacts from people hanging out in the parking lot that is so close to residences. • Suggested having this business leave its door closed and limit entertainment to allow it up to 10 p.m. Director Paul Kermoyan pointed to Condition 6-m that reads "after 10 p.m. and during live performances. Chair Dodd: • Said that with its beer and wine service, this is more a restaurant than a bar. • Admitted to being concerned about the number of high-top tables and the stage. • Added that she'd like to see some restrictions on the karaoke microphone's amplification perhaps "to the satisfaction of the Community Development Director". • Supported restricting live entertainment to conclude by 10 p.m. • Said having the restaurant itself open to 11 p.m. is fine. • Reminded that this proposed use is located very close to a residential neighborhood and is once again short on parking but it would be good to get something onto this site. • Said that she is okay with parking and understands that parking to serve other future uses on this site remain available. • Added that she likes diversity in cuisine and supports outdoor seating to 10 p.m. • Reminded that this area on Winchester is very different from what it was 30 years or more ago. Commissioner Reynolds: • Said he is okay with 11 p.m. for the outdoor seating and live entertainment as he believes noise can be controlled. • Reported that in the Filipino community karaoke is a predominate form of entertainment. It doesn't require instruments but rather the music serves as a background for the vocals. • Added that he is okay with the seating and dining on Winchester up to 11 p.m. • Advised that Filipinos dine later, like the Europeans. They nibble, enjoy small plates, and love to eat and visit. • Pointed out that the noise from traffic would overpower any sounds of conversation by diners seated along Winchester. • Reiterated his support for an 11 p.m. close including for karaoke. Commissioner Finch asked for a suggested number of verifiable complaints. Commissioner Reynolds pointed out that the standard has been three in the past. Commissioner Young listed the other items discussed including: No Loitering signage in the back parking area, limiting entertainment to 10 p.m.; having doors closed when live entertainment is underway; outdoor seating to either 10 or 11 p.m. and a prescribed number of verifiable complaints to bring noise issues back for consideration. Campbell Planning Commission Minutes for February 23, 2016 Page 8 Planner Daniel Fama: • Referenced Condition 11 that establishes three verifiable complaints. • Referenced Condition 6 that has no specific number. Commissioner Young agreed with Commissioner Reynolds about allowing outdoor seating up to 11 p.m. Chair Dodd suggested ceasing live entertainment at 10 p.m. and a vote on 11 p.m. closure. Commissioner Young said the live entertainment should occur with all doors closed. People will go inside to watch any karaoke performances. Chair Dodd suggested restrictions on amplification as a safeguard against potential noise impacts. Director Paul Kermoyan said that is more difficult to control and suggested stopping live entertainment at a certain time may be more effective if the live entertainment is audible from outside the building. Chair Dodd said she could support allowing music to 11 p.m. if it is not heard outside the building. Director Paul Kermoyan said that might be very difficult to control. Commissioner Kendall said that there should be conditions for number of complaints. Planner Daniel Fama cautioned that sound "leakage" comes from doors whether they are open or closed. He suggested having patrons use the front entrance for access. Chair Dodd asked if that is reasonable. Planner Daniel Fama replied yes. That is the ideal and what is wanted in order for this business to have an active presence as seen from Winchester. Chair Dodd said she could support that. Commissioner Finch suggested limiting use of rear door after a specified hour, be it 6, 7 or 8 p.m. at which time only the front door would be used. Director Paul Kermoyan said that two means of egress must be available. At certain times the back could be closed of ingress but remain available for emergency egress. This could be effective at the time the live entertainment starts. It would be best to have an established start time. Chair Dodd said she was okay with 8 p.m. Campbell Planning Commission Minutes for February 23, 2016 Page 9 Motion: Upon motion of Commissioner Kendall, seconded by Commissioner Young, the Planning Commission adopted Resolution No. 4275 approving a Conditional Use Permit (PLN2015-352) and Administrative Planned Development Permit (PLN2015-354) to allow establishment of a new 45-seat restaurant (Kalye Hits) with beer and wine service, outdoor seating, live entertainment (no dancing), and "late-night" operational hours (11:00 PM public closing); and a Parking Modification Permit (PLN2015-355) to allow a reduction in the number of required parking spaces on property located at 2145 S. Winchester Boulevard, subject to the conditions of approval as modified: • Revise Condition 6-m to state that windows and doors to remain closed during live entertainment and that rear doors shall be restricted to emergency egress only after 8 p.m.; • Revise Condition 6-n to establish that three verifiable noise complaints will bring this use back for further review; and • Revise Condition 6-r requiring "No Loitering" signs be placed in the parking lot; by the following roll call vote: AYES: Dodd, Finch, Kendall, Reynolds and Young NOES: None ABSENT: Bonhagen and Rich ABSTAIN: None Chair Dodd advised that this action is final unless appealed in writing to the City Clerk within 10 calendar days. *** Chair Dodd read Agenda Item No. 1 into the record as follows: PLN2015-365 (TA) Public Hearing to consider the City-Initiated Zoning Text Amendment (PLN2015-365) to amend the Campbell Zoning Code to create and modify regulations for massage establishments. Staff is recommending that this project be deemed exempt from CEQA under Section 15061.b.3. Tentative City Council Meeting date: March 15, 2016. Project Planner: Cindy McCormick, Senior Planner Ms. Cindy McCormick, Senior Planner, presented the staff report. Chair Dodd asked if there were questions of staff. Commissioner Young asked if massage uses are a problem throughout the City. Planner Cindy McCormick said that a representative from Campbell Police is here and can address that. Campbell Planning Commission Minutes for February 23, 2016 Page 10 Commissioner Kendall asked what would prevent a massage business from simply identifying as a spa. Planner Cindy McCormick stated that it becomes obvious upon visiting a site whether the business is providing all of the services that they say they are providing. Commissioner Reynolds said that the State seems to have brought the local jurisdictions back into this oversight after having previously relaxed the regulations. City Attorney William Seligmann replied not all the way back but somewhat so from a Zoning perspective. There are still limitations. Sergeant David Livingston, Campbell PD: • Said that he was available for any questions. Commissioner Reynolds asked if enforcing the problem massage establishments has been somewhat of a "cat and mouse" game and whether that has been a drain on law enforcement resources. Sergeant Livingston replied yes, it has been. Commissioner Young asked if there is a stringent definition of massage, be it therapeutic or recreational. City Attorney William Seligmann said that there are legal and practical issues. The City cannot prohibit any type of massage services that the State agency says is legit. Chair Dodd opened the Public Hearing for Agenda Item No. 1. Chair Dodd closed the Public Hearing for Agenda Item No. 1. Commissioner Finch: • Said that she was personally aware of an enforcement situation that occurred at a location at Hamilton & Darryl. She has a friend whose business was adversely impacted by what was occurring at a nearby business. • Added that the PD spent countless hours. • Advised that she is "all for" these regulations being proposed. This is something that we do need to address. Commissioner Kendall: • Said that this Zoning Text Amendment has her support as well. It is important. • Inquired why, when looking at the language regarding prohibited apparel by massage practitioners, bathing suit is not included. City Attorney William Seligmann said that the City's Ordinance references the State law rules that disallow bathing suites except for water massage. Campbell Planning Commission Minutes for February 23, 2016 Page 11 Commissioner Young: • Said that he was surprised to learn that there were 20 massage establishments in our City. • Added that he supports the PD. • Said that the State regulations seemed passive and this Ordinance will help our City have a better handle on this industry. • Stated that he would support this proposal. Commissioner Reynolds: • Said that he was on the Planning Commission when the previous Massage Ordinance was drafted. • Added that this new one is well written. • Stated that some of the bad businesses adversely impacted legitimate businesses. The City has no resources to play games. • Concluded that he will be supportive. Chair Dodd: • Said that she is thrilled to see this Ordinance. • Added that Campbell is a growing City and it is important to be vigilant as to how we want to represent ourselves as a community. Motion: Upon motion of Commissioner Finch, seconded by Commissioner Reynolds, the Planning Commission adopted Resolution No. 4276 recommending that the City Council adopt a Zoning Text Amendment (PLN2015-365) to amend the Campbell Zoning Code (Chapters 21.10; 21.12; 21.36 and Section 21.72.020 (definitions), to create and modify regulations for massage establishments, by the following roll call vote: AYES: Dodd, Finch, Kendall, Reynolds and Young NOES: None ABSENT: Bonhagen and Rich ABSTAIN: None Chair Dodd advised that this item would be considered by the City Council at its meeting of March 15, 2016. *~* Chair Dodd read Agenda Item No. 3 into the record as follows: Campbell Planning Commission Minutes for February 23, 2016 Page 12 3. PLN2013-13 (TA) Public Hearing to consider the City-initiated Zoning Text Amendment (PLN2013-13) to amend the Campbell Zoning Code to reclassify restaurants and motor vehicle sale establishments (within an enclosed building) as conditionally permitted uses subject to approval of a Conditional Use Permit and specifically prohibiting drive-through and drive-in restaurants within the C-3 (Central Business District) Zoning District. Staff is recommending that this project be deemed exempt from CEQA under Section 15061.b.3. Tentative City Council Meeting Date: March 15, 2016. Project Planner. Daniel Fama, Associate Planner Mr. Daniel Fama, Associate Planner, presented the staff report. Director Paul Kermoyan said that one consideration in the future might be the reinstatement of the parking in-lieu fee but that is not a Planning Commission issue but rather one for the City Council to consider. Chair Dodd asked if there were questions of staff. Commissioner Finch asked about the reference to motor vehicle use. Planner Daniel Fama said that it is a clarification that codifies the interpretation of the Director. Director Paul Kermoyan said that there is nothing wrong with the use but rather the inclusion is intended to clarify and legitimize it. Commissioner Reynolds said he was in the Downtown trying to count office uses. He asked if the Campbell Express is considered an office or retail use given that they sell newspapers. Planner Daniel Fama replied office. Commissioner Reynolds said that he counted 10 office uses. Those locations could transition into restaurant uses without the need for a Conditional Use Permit. Planner Daniel Fama replied correct. Commissioner Reynolds asked if preventing one restaurant for locating adjacent to an existing restaurant might not result in creating a void. Planner Daniel Fama said that the more restrictive the language is, the more it ties our hands. With seven members on the Planning Commission, there are seven opinions on what "overconcentration" actually means. Campbell Planning Commission Minutes for February 23, 2016 Page 13 Commissioner Kendall reminded that at the joint study session there was discussion about requiring a parking in-lieu fee. Director Paul Kermoyan: • Reminded that we used to have an in-lieu fee paid for each parking space deficiency. • Added that several years ago that requirement was removed in the Downtown. • Said that there have been many new restaurants since then. • Stated that the question for Council is whether it is time to reinstate that fee. Commissioner Kendall asked if the Commission could make a recommendation that employees of Downtown businesses be required to park in public parking structures and/or for business owners to provide public transit passes. Planner Daniel Fama said that would be impossible to enforce and hard to add into this Text Amendment. Director Paul Kermoyan said that the question had been raised as to whether these changes are in effect going to displace office uses from the Downtown by creating the potential for higher rents from restaurants than from current office tenants. That is a valid concern. Chair Dodd opened the Public Hearing for Agenda Item No. 3. Laura Moore, Resident on Second Street and DT Business Owner: • Said that this is long overdue. • Reminded that the Downtown is very limited in size. • Added that she likes to see policy that office use cannot change hands into office use. • Advised that she supports this Text Amendment. Chair Dodd closed the Public Hearing for Agenda Item No. 3. Commissioner Reynolds: • Stated his agreement with the comments made by Ms. Moore that this is long overdue. • Said that Campbell has an incredible Downtown. Our City is on the map for its Downtown. • Added that in the past few years, it has grown into something wonderful. • Stated that it is time now to take a step back and to be meticulous going forward. • Said that Council has been struggling with this issue for some time now. • Concluded that this is awell-written Ordinance and he will support it. Commissioner Finch: • Stated that she agrees with Commissioner Reynolds. • Admitted that she had been frustrated in the past by a lack of guidance. • Added that this is not too specific. Campbell Planning Commission Minutes for February 23, 2016 Page 14 • Stated her agreement with the comments made by Laura Moore. • Put a "plug" in for the Chamber of Commerce to be allowed to locate its offices on the street frontage in the Downtown. • Concluded that she is fully supportive of this Text Amendment. Commissioner Kendall asked if there should be a performance standard related to parking. Commissioner Finch said that can be dealt with on a case-by-case basis. Commissioner Young agreed. Chair Dodd: • Said that she really likes the idea of more guidance. • Added that she likes the idea of locating more offices upstairs and more interactive uses downstairs in the Downtown. • Said that she personally misses having a bank located Downtown Campbell. While there are a couple of ATM machines in back corners of a couple of restaurants, it's not the same as having a small bank there. • Stated that she doesn't want to restrict the placement of a restaurant adjacent to another restaurant. Director Paul Kermoyan said that there is a difference between a bank use and office use in the definitions. Commissioner Young referenced page 3 of the staff report that rather than being a barrier to entry of new restaurants the Ordinance would leave the City flexible in making its decisions. He asked if more specific criteria might not be needed. Commissioner Kendall replied that there is probably enough. Motion: Upon motion of Commissioner Reynolds, seconded by Commissioner Finch, the Planning Commission adopted Resolution No. 4277 recommending that the City Council adopt a Zoning Text (PLN2013-13) to amend the Campbell Zoning Code to reclassify restaurants and motor vehicle sale establishments (within an enclosed building) as conditionally permitted uses subject to approval of a Conditional Use Permit and specifically prohibiting drive-through and drive-in restaurants within the C-3 (Central Business District) Zoning District, by the following roll call vote: AYES: Dodd, Finch, Kendall, Reynolds and Young NOES: None ABSENT: Bonhagen and Rich ABSTAIN: None Chair Dodd advised that this item would be considered by the City Council at its meeting of March 15, 2016. Campbell Planning Commission Minutes for February 23, 2016 Page 15 *** REPORT OF THE COMMUNITY DEVELOPMENT DIRECTOR Director Paul Kermoyan had nothing to add to his written report. ADJOURNMENT The Planning Commission meeting adjourned at 9:28 p.m. to the next Regular Planning Commission Meeting of March 8, 2016. SUBMITTED BY APPROVED BY: ATTEST: rinne Shinn, R~ording Secretary