Executive summary:
The outdoor dining program has been evolving since it began at the start of the pandemic due to ever changing state regulations, and efforts to ensure consistency with the character of the Village. The Council is being asked to consider whether to make two case-specific changes to the current uniform closure time of 10:00pm. These potential changes include extending the hours of Sades Cocktails and the other two permitted drinking establishments, and considering separate uniform hours for wine tasting rooms.
Discussion:
Overview
At the December 8, 2020 City Council meeting, a consensus decision was made that a uniform closure time should be put in place for all of the 60-plus “parklet” spaces which include restaurants, wine tasting rooms, and bars operating as restaurants. Following that direction, a 10:00pm closure time (all guests gone by 11:00pm) was established by the Community Planning and Building Department for all parklet types. This time was chosen to strike a balance which would help businesses in the downtown area to generate revenue, while also protecting the tranquility of the village and welfare of the residents.
On December 13, 2020, all outdoor dining was mandated to be closed and restaurants were limited to take-out and delivery only based on a shelter in place order from the Governor. What was originally expected to be a 3-week closure of outdoor dining, ended up lasting nearly a month longer. On January 25, 2021, the Governor’s order was lifted, and outdoor dining was once again allowed with social distancing measures, and the new uniform closure time in place.
Ad-Hoc Committee
With the dynamic nature of outdoor dining and the need to consider what it may look like into the future, an Ad-Hoc Committee consisting of Mayor Potter and Councilmember Richards was recently established to create a dialogue with business operators and the general public alike. There have now been two public meetings of the “Outdoor Seating Ad-Hoc Committee”, on February 8th and February 16th. The Ad-Hoc Committee will continue to meet with the goal of providing recommendations to the full City Council about a permanent outdoor seating program, post-pandemic.
Sades Request for Exception
At both public ad-hoc meetings, Parker Logan, the owner of Sades Cocktails, requested that his parklet be granted an exception to the 10:00pm uniform closure time. He stated that the 10:00pm closure was detrimental to the livelihood of Sades, asserting that his unique business largely caters to patrons after they have eaten dinner in the village. During normal times, the Use Permit for Sades allows for the business, which is fully indoors, to remain open until 2:00am. Mr. Logan requested that Sades be allowed to seat people outdoors until 12:30am, with all guests needing to be completely gone by 1:00am. At the February 16th Ad-Hoc Committee, there was a general consensus among the larger group that Sades was a unique operation, and should be allowed to operate past 10:00pm. Overall, the Ad-Hoc and larger group felt that the proposal from Mr. Logan was reasonable. As part of their recommendation, the Ad-Hoc Committee reinforced that food must be served during all operating hours, which is a condition of Sades being able to operate as a “restaurant” under the outdoor dining program. Bars, in the strict sense, are not allowed to operate until tier 4 (yellow) under the State guidelines. The Ad-Hoc Committee also made it clear that Sades would be strictly responsible to ensure that the additional hours did not impose on the peace and tranquility of the downtown area. The Ad-Hoc recommended that if the additional hours created a nuisance, Sades would need to immediately return to earlier hours.
It should be noted that there are two other permitted drinking establishments in the village, Barmel and A.W. Shucks. These two businesses, like Sades Cocktails, also have Use Permits that allow service until 2:00am under normal times. If the Council opts to allow an exception for Sades to stay open, they could choose to also grant this exception for A.W. Shucks and Barmel. A.W. Shucks currently has a parklet, but has not requested to stay open past the 10:00pm closure time. Barmel has not applied for a parklet under their name, but the adjacent restaurant, Pescadero (same ownership), currently has an application for a parklet in review with Community Planning. If the Council grants an exception to these two other businesses, they would still need to get approval from State ABC and continue to serve food during all hours of operation to be in compliance.
Wine Tasting Rooms
Another consequence of the uniform closure time across all of the parklets, is that wine tasting rooms are now able to stay open until 10:00pm. This is several hours later than the closure time required by their use permits, which for many is around 6:00pm. Wine tasting rooms are not required to sell food along with their service of alcohol. In that sense, wine tasting rooms are more like a bar than a restaurant, since guests are only drinking wine, not eating a meal. Staff is requesting the Council consider whether or not to create a separate and different uniform closure time for wine tasting rooms given the unique nature of these businesses. A modified closure time for tasting rooms was not discussed by the Ad-Hoc Committee, but the Community Planning and Building Department has received a handful of calls from residents about excessive evening noise from tasting rooms, which is the impetus for this discussion item.
Questions for Council:
Given that the direction to create a uniform closure time came from City Council, it was not appropriate for exceptions/modifications to be granted at the staff level. So, the Ad-Hoc Committee recommended that it be brought to the full City Council for consideration. With that in mind, staff is requesting direction on the following specific questions:
1. Should Sades receive an exception to the uniform closure time of 10:00pm? If yes, would the Council like to follow the Ad Hoc recommendation of allowing Sades to seat people in their parklet until 12:30am, with all guests out by 1:00am or some other alternative?
2. If the Council grants an exception for Sades to stay open past the 10:00pm closure time, should this apply to the other two permitted drinking establishments (A.W. Shucks, Barmel) if they met the criteria set forth by the State ABC?
3. Should a separate uniform closure time be established for wine tasting rooms? If yes, does the Council want to select 6:00pm as the closure time, or some other alternative?
Based on direction from City Council, staff will amend the program as needed and provide written communication to all parklet operators to ensure operators are aware of any modifications.