P&R 09-07-06
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CITY OF
CUPEIQ"INO
P ARKS AND RECREATION COMMISSION
CITY OF CUPERTINO
REGULAR MEETING
THURSDAY, September 7, 2006
1. CALL TO ORDER
Chairman Peng called the regular meeting of the Parks and Recreation Commission to
order at 7 p.m.
2. PLEDGE OF ALLEGIANCE
3.
ROLL CALL
Commissioners present:
David Greenstein, Roger Peng, Margaret Goodrich, Derek
Chen
Jeanne Bradford
Commissioners Absent:
Staff present:
Thomas Walters - Acting Director
Mike Bookspun - Administrative Assistant
4. MINUTES OF PREVIOUS MEETING
ACTION: The minutes of July 6, 2006, were approved unanimously
5. ORAL COMMUNICATIONS - None
6. NEW BUSINESS
Roger Peng
The main subject is the Commission will make a recommend to the Planning Commission and
City Council should the Municipal Code be amended to allow the Blue Pheasant operator to
apply for a Conditional Use Permit for 11 :OOpm to midnight operation on Thursday, Friday, and
Saturday nights? Make a recommendation to the Planning Commission and City Council.
David Greenstein
I talked to the City Attorney, I live a block away from the Blue Pheasant, and was advised to
recuse myself from the meeting because of the two conditions regarding restaurant hours and that
I live within 500 feet of the facility, so I'm going to do that at this time and let the Commission
proceed.
Tom Walters
I have a presentation to give on the Blue Pheasant Restaurant.
The Blue Pheasant bar and restaurant operates in a City-owned facility adjacent to Blackberry
Farm Golf Course. The restaurant has been in business for over thirty-five years. Prior to Spring
2004, the Blue Pheasant stayed open until 2 AM on weekends.
The City of Cupertino acquired the Blue Pheasant (the building) with Blackberry Farm Picnic
Grounds and Golf Course in 1991, along with inheriting the lease. At the time of purchase, the
lessee was in the final years of a 10-year agreement with an option to renew for an additional 10
years. The City honored the ten-year lease extension.
Eighteen months prior to the March 31, 2004 lease expiration, staff negotiated a new lease
(through 2009 with another renewal option) based on an II PM closure. The parcel the Blue
Pheasant occupies is approximately two acres. The parking is shared with the golf course; the
lease designates 91 spaces for the restaurant.
The Blue Pheasant hours of operation became an issue after the City acquired the property and
annexed it. Prior to annexation, the property was under the jurisdiction of Santa Clara County.
Once a part of Cupertino, the Blue Pheasant became subject to city zoning. The "Park" General
Plan designation was assigned and the applicable Parks and Recreation zoning applied.
The current owner of the Blue Pheasant is Mike Tsachres. Mr. Tsachres acquired the business
from the Rasmussen family in 2005, when they retired. The Rasmussans founded the Blue
Pheasant. Upon acquisition of the business, Mr. Tsachres asked the City (as property owner) to
process a General Plan amendment, zone change and Conditional Use Permit to allow 2AM
operation of the bar.
The City Council initiated the process, but ultimately the request was denied by the Council.
Mr. Tsachres has once again asked to stay open later. He has now limited his request for time
extension until midnight, three nights a week (a total of three more hours of operation per week).
Tonight you will take public comment and make a recommendation to City Council regarding
the amendment to the Municipal Code. The Planning Commission will hold a public hearing on
the Code Amendment on Tuesday, September 26, 2006. The City Council will consider the
Amendment to the Municipal Code on Tuesday, October 17,2006. Assuming the City Council
amends the Municipal Code to allow the Blue Pheasant owner to apply for a Conditional Use
Permit, the owner would then need to apply to remain open until midnight, Thursday, Friday and
Saturday nights.
Public hearing notices will be sent to surrounding residents. The Planning 'Commission will hold
a hearing on the CUP application. However, the issue before you is not whether or how the Blue
Pheasant should operate, but rather, whether the code should allow for the Conditional Use
discussed above.
End of presentation.
Roger Peng
Asked audience to fill out cards for comments on the issue.
David Greenstein
Speaking as a resident and not a commissioner, per attorney, I live near the Blue Pheasant, and
know there are neighbors for the Blue Pheasant, and some don't like some of the operation of
Blue Pheasant. I want to personally to see, since it's been around for such a long time, before
most residents in area, I think we should look at that fact that it's been around for a long time and
honor that there are many people that like Blue Pheasant. I would like to see hours extended,
with a proviso for the neighbors that live right next to and around the restaurant, that there be
strict regulations on parking and noise and a way to penalize if these things are not followed, so
the neighbors can also be honored in their request.
Albrecht Schoy
Lives on Pharlap Dr. near Blue Pheasant and is also on board of Oakdale Ranch Homeowners
Association, and speaks for those who are concerned with extended hours and is against the time
extension because neighbors have suffered enough under prior owner. There have been many
problems over years. Ilpm doesn't mean Ilpm, when the restaurant stays open from 12:30 until
12:45. I want to challenge assumption that the business cannot make it. Living there I see how
many cars are there on weekend and are there late, and can run without the extension and still be
profitable, such as Elephant Bar. This is in very residential area. Everyone who parks there and
walks by affects our peace and quiet. Big risk for us to go back to the old days when late coming
patrons, different clientele who dances, after 11 pm go there already drunk from other
establishments, and difficult to control. The underlying problem is not with restaurant, but
nightclub operation. Noise and parking issue has not been resolved, City has not added parking,
all the facts remain the same as a year ago when application got turned down, extending another
hour with put people back to leaving at 2am again. Most people go to Blue Pheasant are not
from Cupertino who go there for nightclub operation. We open can of worms now, 12 months
later, we'll be here asking for another extension, should stay in parks and recreation area as
protection to neighbors, and believes business can still succeed.
John Ennals
Speaking as past president of the Oakdale Ranch Homeowners Association. The City assured us
their was nothing they could do because of the 10 year lease but promised once lease expired, it
would go to the park and recreation use, and was upheld at City Council. It was staggered when
Mr. Tsacres still bought the business. He was surprised when he went there on July 22 at 11 pm
and 21 cars were in the street, the lot full, a car being towed, 19 cars on access road, 7 empty
spaces in lot, 131 cars total. A couple weeks ago at Fri. at 11 :30pm, the road was still full with
cars parked on dirt, 13 spaces available in lot and an unusual number of cars parked on his street,
with 8 cars on Oakdale. There were no cars on Oakdale, and much fewer on Pharlap the next
morning. Mr. Tsachres is running a successful operation and is running way past closing time,
people are staying as long as the restaurant and bar operation lets them, and not in the spirit of
what was decided when the new lessee arrived. So some data will be collected in the future, I
don't see where people will park if they start arriving after Ilpm, and Council voted
unanimously not to extend hours when it went there last summer.
Roger Peng
Noted that the speaking time has expired.
Tessa Ennals
I'm on the Board for Oakdale Ranch, and a questionnaire in the summer was sent to
homeowners, and one topic was the Blue Pheasant hours, and I received a total of 23 surveys
which said 8 were in opposition to extension, 4 were somewhat opposed, 6 in support of
extension, and 8 said indifferent, not very many out of 120 homes, but feels more in opposition
than in favor. I feel the Blue Pheasant is a landmark, and no one wants to see it go out of
business. I'd like to get clarity on what is meant by closing time, when doors closed and
operator can continue to play music and serve drinks as long as he wants? Because it's City
property, if! rented another community facility for wedding and was allowed to hold untilllpm,
I'd make sure everyone left by II pm, or could I close doors and go on as long as want. I don't
understand definition of closing time. Can you help me on that?
Roger Peng
Appreciate you bring statistics here, that will help us. Tom can you help us understand the
closing time?
Tom Walters
Regarding closing time, I can't answer that question, but at the Quinlan Center, if there's a
wedding, the closure is at 11, then everything has to be cleared out by 11 pm.
Roger Peng
A closing time specific definition at Blue Pheasant, like the Quinlan or Senior Center should be
applied here too.
Mike Tsachres
I'm here to answer any questions. You all know the troubles that you had with previous
situation, when I came in, I asked for 12pm closure, With my other clubs, I never ask for after
12pm, that's it,. Ifwe close at 1lpm, no one kicks out customer, doesn't mean we violate time,
the rule is no one is let in. If Council approves 12pm, everyone will be gone by 12 :30pm. I'll
assure the neighbors that if open until 12pm, nothing will be different from now and security in
the parking lot will not let people park across the street, and wont let them enter the restaurant if
they do, problem has been eliminated. I won't get rich by leaving it open until 12pm. Plenty of
empty spaces by 11 or 11 :30, and don't see why I can't pick up other customers. I notified the
City a month after a bought that it's getting tougher and tougher. I'm not there to be in fight to
hurt neighbors, I need the neighbors' patronage and have no desire to come into confrontation
with anybody and don't understand why they fight so much for one hour three days per week. I
made a sign saying this is not parking for restaurant guest, security enforces this. I want
neighbors to understand that I'm not there to create trouble to anybody. Since I bought the
restaurant I've paid the bills, and it's old, the sewer is bad, the air conditioning is bad, the
elevator, refrigerator went out, I spent $30K to fix place.
Roger Peng
Please come back to podium, I have some questions. There are times when you asked patrons to
park properly, how often does that happen?
Mr. Tsachres
Every Friday and Saturday only, and a little on Thurs. I have two security people in lot and at
doors, if they say them coming from across street, they're stopped and told to go park at post
office or deli. There's a please don't park here sign and please be quiet sign, so people don't
bother residents. Also sheriffs go by there every weekend.
Derek Chen
Do you have any projection on how much more money you'd bring in with extra 3 hours every
week?
Mr. Tsachres
No , but at 9pm, every night we do a count, and know by 11 pm how many are inside, usually 158
162, we estimate 10-15 more people from II to 12pm on weekend. During the week 80 or 90.
It's a big restaurant with a lot of expenses, so any extra money we can recover during the busy
time will help, if you turn back people, they won't come back, the number will get less and less,
all the promotion, not getting the numbers as Elephant Bar and others. Whatever we can get,
we'd like a chance to survive. I like the restaurant and want to stay there.
Derek Chen
Before you bought the restaurant, you had time to observe the business, did you not take into
consideration that the restaurant does close at 11 pm and is City ordinance?
Mr. Tsachres
I understand what you say, but 12pm was not the issue. I could do the closure with City Council
was his understanding. I came in and said I'll comprise and close at 12pm, then figured out after
spending all the money, do I have the right to request one hour in October, November and
January. I need some help to succeed and survive, I'm not here to hurt anybody, if the neighbors
don't come, who will?
Margaret Goodrich
Have you considered other revenue avenues, longer hours, weddings, and other activities you've
considered to increase the revenue stream?
Mr. Tsachres
We tried to do banquets, November and December the Kiwanis, but not enough.
Margaret Goodrich
What about breakfast?
Mr. Tsachres
It's impossible, the kitchen is too small to cook.
Margaret Goodrich
You're now open at noon?
Mr. Tsachres
11 :30am until 11 pm.
Margaret Goodrich
When you signed on the contract, you knew you were signing for 11 pm, you had a choice?
Mr. Tsachres
It was already done, not at that point, I put money in escrow, ABC, so I took it, but it's ok , I like
the place and will stay there
Margaret Goodrich
Sounds like you do a good job.
Tony Vandersteen
I've lived on Pharlap for 34 years, haven't heard much of previous positions, but know what's
represented on Pharlap and the opposition. We've been very happy with the environment, and
enjoy fact that a nice restaurant,club and golf course, and have taken full advantage, and
sympathize with people living closest to the club dealing with people creating problems. I'm
concerned this might mean a zoning change, because it opens up a can of worms that can't
foresee in future. I don't have a problem with the Blue Pheasant and really believe that success
of Blue Pheasant comes from club because you do see a good attendance. Some residents do
have problems, some don't, at the far end ofPharlap, I don't have a problem. The main concern
is ifisn't enough profit to make it worth some ones while, it doesn't take a lot to realize there
isn't much money to be made of this, with cutback in hours, I can see it is a bit of a threshold
thing. I can see that city has a problem in terms of the parking, monitoring a and policing of the
operation and Pharlap parking and has to be fixed properly. I wouldn't have a problem with
extension as long as it's fixed. I'm concerned if it does go out of business, what happens 5 years
from now if condos are put there? I don't see an easy solution but I think the City should come
in and help.
Roger Peng
Closes public comments section, and gives to the Commission to discuss and make a
recommendation
Derek Chen
I'm familiar with area because my in laws live there, and I drive by 2-3 times per month and
know it's a steep street and cars go extremely fast and could pose a danger if the restaurant is
open too late at night. I feel the pain the owner is feeling trying to generate revenue for his
business, and wondering if I can recommend a 6 month trial period to see how it runs, if it
worsens, or after the 6 month period, the owner would have to reapply for a Conditional Use
Permit to see if worsens, and if so, stop it. If it doesn't, allow to continue?
Margaret Goodrich
I also am concerned about the history of the Blue Pheasant, it's become a fixture in community.
Cupertino inherited the lease and long hours from Santa Clara County, and renegotiated the lease
with the Rasmussens, and then with the new applicant, negotiated a contract. I'm also concerned
with being in the shoes of resident, who need assurance about the hours of operation, and
granting a CUP, which is the issue before us this evening, which brings a broad interpretation.
CUP's have various degrees of monitoring and interpretation, and uncertainty if a home owner
adjacent to Blue Pheasant, so neighbors would be in a position where they'd have to reinforce,
have vigilance, and not a lot of assurance about what the future would hold. So to me this
Conditional Use Permit per say should have a very limited use. I also look as this primarily as a
Parks and Recreation Zone that happens to have a restaurant in it. It serves a very important
purpose, however it was inherited in a way, so we must take on the issue with the property, try to
collaborate, it means finding a middle ground which is what staff did when 11 pm was
negotiated. Mr. Tsachres indicated at 11 pm when last customer arrives, you don't want to force
him to leave, but let them enjoy their time, so closing isn't exactly 11 pm. I want parking
monitored to see if it is a major issue for the business. Tome we have a situation that is a de
facto situation, it may not be covered by ordinance or legally, but in a certain way, the bar is a
pre-existing condition, personally I wouldn't want to say just because it's a Parks and Recreation
Zone, we'll dispense with the bar. My inclination is to keep it the way it is and work with the
Blue Pheasant to enlarge the revenue stream, be a little flexible, and see how it works for a little
while longer. Ifit doesn't, we'll revisit it.
Roger Peng
First, I'd like to respond to the question, should Municipal Code be amended, but tonight's
recommendation regarding a Municipal Code Amendment is directly related to the Blue
Pheasant, and I agree with a 6 month probation, in addition adding conditions that restrictions
strictly be applied and enforced on parking and noise level. Let them run a trial period for 6
months, and we'll monitor the situation. Lets make a motion.
Tom Walters
To make sure you guys are clear on what you're voting on, it's a recommendation to the
Planning Commission and City Council to allow an amendment to the Parks and Recreation
Zone, and Planning Commission to issue a Conditional Use Permit for the operation of a
restaurant and bar. Right, correct.
Derek Chen
So we cannot put a trial period in there?
Tom Walters
I don't know how that works exactly, except that the Commission needs to make a
recommendation to Council on whether or not to amend the Municipal Code.
Roger Peng
My understanding is the amendment this is not a generic case, but specific to the Blue Pheasant.
We can apply the conditions of 6 months trial period and noise and parking enforcement
Tom Walters
Even if recommended, it still has to go to Planning and Council and back to Planning. The
Planning Commission will take this up on 9/26, and Council on 10/17.
Margaret Goodrich
I need clarification here. My understanding is just on this issue we're voting. Are we amending
the issue?
Tom Walters
It sounds like your amending the issue.
Margaret Goodrich
Do we have authority to change wording on the issue?
Derek Chen
I think we can vote on issue, but separate from the vote, recommend how to best address the
Issue.
Margaret Goodrich
Based on wording, it's a yes or no, so I don't see how that's possible
Roger Peng
The way I read it, we can make an additional recommendation. Sometimes the chair has to make
some interpretation on the wording.
Margaret Goodrich
So if we're going to change the wording, should we allow for further discussion on that?
Roger Peng
Sure.
Margaret Goodrich
I'm just not clear, Tom can you give us any direction on this?
Tom Walters
I haven't gone through this process so I'm not sure whether you can change the wording or not.
Margaret Goodrich
My understanding is the recommendation will go down the pipe to Council and Planning.
Mike Bookspun
I can read the agenda. The agenda item states: Should the Municipal Code be amended to allow
the Blue Pheasant operator to apply for a Conditional Use Permit for 11 :OOpm to midnight
operation on Thursday, Friday, and Saturday nights? Make a recommendation to the Planning
Commission and City Council. The way I read it, it doesn't really specify what type of
recommendation you're supposed to make, and unfortunately, Therese could not be here tonight,
but I think that along with you recommendation you can communicate your feeling on
conditions, which the Planning Commission and Council would stipulate in the end
Margaret Goodrich
The tentativeness with a plan like that, involves enforcement, interpretation, homeowners and the
owner together more, its' a problem because it's so indefinite.
Roger Peng
Lets have two motions. One to follow wording strictly. Then second motion including two
conditions. To cover all ground.
Derek Chen
MOTION: Should the Municipal Code be amended to allow the Blue Pheasant operator to apply
for a Conditional Use Permit for 11 :OOpm to midnight operation on Thursday, Friday, and
Saturday nights?
Roger Peng
Suppose we vote on this here, then there's no point on the second motion.
Derek Chen
So depending on the outcome of this vote, could we make another motion?
Roger Peng
If this passes, then there's no point in making another recommendation.
ACTION: The Commission voted 2-1 NO to allow the Blue Pheasant operator to apply for
a Conditional Use Permit for 11:00pm to midnight operation on Thursday, Friday, and
Saturday nights.
Yes - Peng
No - Goodrich
No - Chen
Roger Peng
Can I have second motion?
Derek Chen
Can we discuss?
Marget Goodrich
What I'd like to see is something substantive, really verifiable evidence of what you've done to
increase business to generate more of an income stream, a profit loss statement, whatever you're
comfortable with, if this is revisited
Derek Chen
I think conditions are midnight closure with patrons leaving by 12:30am, that they do this for six
months, then this is revisited, or apply to extend further after 6 months.
Roger Peng
6 months with conditions that parking an noise be enforced. How do you enforce this? I can't
tell you now, but there are ways such as signage for example. Lets make a motion.
Derek Chen
I move to vote that the Municipal Code be amended to allow the Blue Pheasant operator to apply
for a Conditional Use Permit for 11 :OOpm to midnight operation on Thursday, Friday, and
Saturday nights under the conditions that a six month trial period with parking and noise
enforcement be implemented.
Margaret G.
I'll suggest that it isn't an amendment, but what your proposed is a trial period, and amendment
cannot be a temporary thing. My feeling is what you're suggesting to have a trial period, and
than come back later for an amendment.
Roger Peng
Should we allow the Muni code to be amended? This applies directly to issue of the Blue
Pheasant. When a Conditional Use Permit is applied for, add these two conditions.
Derek Chen
Maybe we could just recommend on our own to Council?
Roger Peng
We can't do that on our own.
Margaret Goodrich
I have no other input, its either or. I don't think were in a position unless there was more
enforcement.
Roger Peng
Suppose these two conditions were added, would we want the Municipal Code amended?
Derek Chen
Maybe it's the owner's responsibility to apply for a trial period?
Roger Peng
They can't, there's no legal ground. Lets make a recommendation. If Council looks at two
motions, if they think second motion is valid, then they'll accept it.
Derek Chen
It's really only a recommendation.
Tom Walters
Your first vote was two no's and one yes not to have Council amend the Municipal Code. What
you're trying to do now is come up with another recommendation?
Roger Peng
Yes, to amend the Municipal Code to allow the Blue Pheasant operator to apply for a
Conditional Use Permit for 11 :OOpm to 12:00am operation on Thursday, Friday, and Saturday
nights under the conditions that a six month trial period with parking and noise enforcement be
implemented.
Margaret Goodrich
And the have a determination of who and how would determine the validity efforts.
Tom Walters
You're just making recommendation on what you'd like to see.
Roger Peng
Planning and Council will look at all the details.
ACTION: The motion passed 2-1 to amend the Municipal Code to allow the Blue Pheasant
operator to apply for a Conditional Use Permit for 11:00pm to 12:00am operation on
Thursday, Friday, and Saturday nights under the conditions that a six month trial period
with parking and noise enforcement be implemented.
Roger Peng -yes
Derek Chen - yes
Margaret Goodrich - no
Roger Peng
I understand outcome and discussion cannot please everyone, but this is not final decision but
only a recommendation to Planning Commission and City Council. Thank you to all for coming
and bringing your thoughts.
7. MISCELLANEOUS - NO ACTION REQUIRED
Tom Walters updated the Commission that at on 9/5/06 City Council voted to reject the Sports
Center Pool RFP's and would like the Commission to take public comment and make
recommendation to Council on future use of the facility. The focus should be on service and
revenue programs, which are not already offered. At the next Parks and Recreation Commission
meeting, ideas will be discussed and recommended.
David Greenstein
Asked for any background. Who applied and what happened?
Tom Walters
DACA has a 10 year lease at the pool, and didn't renew, and has since moved it's location
nearby. The City would have to invest too much money in repairs and upgrades, so instead is
looking at other programs to offer. Also noted is there is too much competition amongst existing
swim programs within the community. Skateboarding, a driving range, dog park are some ideas
that have come up.
David Greenstein
The pool area is big enough for a driving range? Are we talking about same place?
Tom Walters
It's a small area like the Blackberry Farm facility. Commissioners will have a month to think on
this and staff will bring data to next meeting for analysis.
Roger Peng
The Moon festival is on Sept. 30, and hopes to see everyone there.
8. ADJOURNMENT
Chairman Peng adjourned the meeting at _8:15-p.m.
Respectfully submitted,
Mike Bookspun, Administrative Assistant