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• Encourage restaurants to stay open later by changing the hour when a CUP is required for restaurants serving alcohol from 10 p.m. to 11 p.m. She noted this change would be City-wide; • Create a process for modifying existing CUPs requesting to adhere to the new guidelines; • Capture the new guidelines in the CUP process Mayor Hosterman and Councilmember McGovern requested clarification on current requirements for restaurants serving alcohol. Ms. Ott explained that restaurants are currently allowed to serve alcohol after 10 p.m. with a CUP. Bars automatically require a CUP. She noted that both the PDA and EVC made recommendations over and above those of the Task Force, some of which staff supported. The most notable is the ability for businesses wishing to operate under these guidelines to make such modification within their existing CUP. Staff also supported their recommendation for annual reporting in order to provide feedback on the efficacy and acceptance of the guidelines. Mayor Hosterman said she received numerous comments from the public in just the last two days and it would seem beneficial, whatever the Council's decision, to bring this back for evaluation and potential modifications after some specified period. Councilmember McGovern said the staff report indicated the monitoring report would be prepared by the PDA but that she felt the City had some responsibility here as well. Ms. Ott explained that the PDA offered to do so and that staff certainly anticipated assisting in the process. Councilmember Cook-Kallio said she was somewhat uncomfortable with the sheer number of phone calls and emails she had received on this within the last few days and with making a decision without addressing these concerns. She requested clarification on what the focus of the report would be. Ms. Ott said they have not laid out that framework but would suggest that it include feedback from downtown businesses and residents as well information on any complaints or violations. Ms. Ott stated that staff evaluated the guidelines against the California Environmental Quality Act (CEQA) and generally found the impacts to be less than significant. The guidelines do not propose any construction, demolition, changes to underlying zoning or increases in occupancy and these types of use are already addressed in the City's General Plan and EIR. The one area that seemed to warrant focus relative to CEQA was noise impacts. While the guidelines do propose an increase in allowable decibels from 70 to 74 dba in the core area, the guidelines in the transition or residential areas either decrease or remain unchanged. She noted that staff received a number of comments over the last two days. Residents' concerns focused on the noise impacts from increased outdoor music, that residents would be acting as enforcement agents, that increased vitality could generate more noise, parking, loitering and littering impacts, that certain business might not be able to provide adequate sound attenuation, and overcrowded downtown. Staff received requests for the City to build a new parking structure to accommodate the increased traffic resulting from downtown events. However, staff was also contacted by a number of residents to share their support for increased activity and vitality in the downtown and their willingness to tolerate occasional traffic and noise impacts given this benefit. Several residents felt the increased vitality would actually increase their property values. Several property owners requested to have their own properties located within the core rather than the transition area. Ms. Ott noted that the Planning Commission had acknowledged the potential for such requests and recommended an 8