The Campbell Planning Commission gave the couple its strongest warning yet at an Aug. 9 public hearing, after a melee involving 30 people on July 3.

The Campbell Police Department considered the incident serious enough to warrant a recommendation that the theater's live entertainment license be revoked.

Prior to the hearing, the Gaetanos had requested a modification to their conditional use permit, which included more liberal hours of operations, the elimination of queuing and loitering restrictions outside the theater and the elimination of responsibility for removing advertising such as stickers and posters. Although the Gaetanos wanted to withdraw the request, the planning commission chose to review it and voted 6-1 to deny a liberalization of rules.

During the hearing Sharon Fierro, community development director, told the commissioners of lengthy discussion with the police department about how to address the ongoing problems.

She said there is graffiti left in downtown from the people advertising bands and renting the facility. The Gaetanos are responsible for making sure it is cleaned up, but are not doing so, she said.

Police Sgt. Arthur Markham also told the commission about a number of incidents that occurred during live-band concerts, including an 18-year-old performer being pulled from the stage and hit with a beer bottle; intoxicated patrons and, during the July 3 melee, the theater's security guard saw an individual with a lead pipe and disarmed another who pulled out a switchblade.

Markham said the live entertainment permit was given on the condition that the theater abide by specific security guidelines, which the Gaetanos claimed were not workable because of their teenage crowd.

In order to be in compliance with the permit, Gaslighter security must be bonded, certified security guards with guards card issued by the Department of Consumer Affairs. There should be one certified security guard for each 50 patrons, which Markham said was not the case. He told the commissioners that employees who were not bonded and who lacked guard cards were acting as security guards. He said they did not have the proper training or experience.

He cited the beer bottle incident as an example and noted that the police did not hear about it until the next day, when the hospital notified them of the man's concussion.

He also brought up the July 3 incident that began at the theater and ended up across from Katie Bloom's.

"Security did not contact the police over it, and the police saw the guards involved in the melee," he said. "Two days later the security guard told the police that he took a knife off one of the combatants and he didn't mention it until a few days later.

"We have been very fortunate that no one has been injured to this point," Markham added.

Commissioner Michael Rocha asked whether the live entertainment permit was predicated on compliance with security requirements, and Markham said that the permit allows theater management to supplement with a staff member who holds a guard card. He said, however, that he didn't think any of the guards had a card.

Mark Gaetano defended the theater's security policies, saying that in his view the bonded security guards "do not work with our venue," arguing that teenagers often feel threatened by security guards and that his staff knows better how to handle rowdy adolescents.

He added that security guards tend to be "parking lot security who speak little English and know nothing about high school kids."

Gaetano pointed out that the theater was working with police Capt. Dave Dehaan to develop a better method of dealing with security, and argued that its safety record was good, having had hundreds of shows and few problems.

"Is that really a reason to shut us down?" he asked.

Susan Gaetano also spoke and tried to explain why her staff didn't call the police on the night of the melee, saying they were merely following the rules of the house, moving people away from the front of the theater and clearing the area within the 150-foot requirement.

She also asked that the commission not revoke the live entertainment permit because it was a significant portion of their livelihood. She added that she is thankful she has a business such as the Gaslighter because "it has done nothing but bring happiness to people."

She told the commissioners, "This entire process has been very stressful. We are an icon in Campbell. The good that we bring to the downtown far outweighs whatever problems we have."

Commissioner Bob Roseberry said he appreciated the positive side, but warned that even if the theater were 99 percent in compliance, one case could turn it around.

Commissioner George Doorley was less inclined to set the matter aside, saying there were significant reasons for staff to look at the issue again and review whether the permit should be modified or revoked.

"This is the same position they have on security the last time they spoke," he said. "Their refusal to obey has resulted in a negative public image."

The other commissioners, however, thought that the Gaetanos were making a sincere effort to work with the police department. The Gaetanos told the commissioners that they hired a bonded guard. The commissioners also were sympathetic about the financial burden a revocation of the live entertainment license would pose.

However, their warning to the couple was clear.

"I will go along with this as long as the Gaetanos follow police advice," Rocha said. "If you come back to the commission, we will have to act in a heavy-handed manner. We worked very hard to craft these conditions originally."

One of the strongest warnings came from Commissioner Bob Alderete, who pointed out that there are repercussions from underage drinking at the concerts.

"You really have to understand the negative aspects of some of your patrons. You have to take ownership and really take responsibility."

And he added, "I am really concerned for the safety of the individuals, and as much as I am in favor of the place, I will be in favor of revoking this license if it comes back here again."

Chairwoman Elizabeth Gibbons reiterated the last-chance theme.

"We've heard it before, being dismissive of the need for security and the refusal to abide by the security requirements that have resulted in our being here again. The issue of security was taken very cheaply."