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O2254f:\atty\m u n i\laws\ba rry\a Icoholcupextend C ityCo u n cilCodeC hage2d-3-25-08 City Council Meeting 3-25-08 Santa Monica, California 2254 ORDINANCE NUMBER (CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING SANTA MONICA MUNICIPAL CODE SECTION 9.04.10.18.020 TO CLARIFY THAT BUSINESS ESTABLISHMENTS WITH ALCOHOL CUPS MUST OBTAIN NEW ALCOHOL CUPS IF THE ESTABLISHMENT CEASES OPERATING FOR A PERIOD IN EXCESS OF ONE YEAR, OR IN EXCESS OF SIX MONTHS IN THE CM DISTRICT WHEREAS, in 1985, the City adopted Part 9.04.10.18 of the Zoning Ordinance, Alcohol Outlets, to regulate establishments dispensing alcoholic beverages; and WHEREAS, while the issuance of liquor licenses is the exclusive province of the State, local governments are authorized to impose reasonable land use and zoning restrictions on alcohol establishments directed at the land use effects of these businesses; and WHEREAS, the City adopted the alcohol outlet regulations in recognition of the complex interrelationship between the availability of alcohol, the consumption of alcohol, and resulting community problems such as public drunkenness, drunk driving, traffic accidents, violent crime, noise, and nuisance; and WHEREAS, Santa Monica Municipal Code Section 9.04.18.020 requires all new businesses or uses dispensing alcoholic beverages for sale or other consideration to obtain a conditional use permit; and 1 WHEREAS, Section 9.04.18.020 also provides that a conditional use permit is required for existing premises where operations have been discontinued for a period of over one year; and WHEREAS, since this section's adoption, the City has interpreted this provision to apply to all existing premises including those which already obtained an alcohol CUP; and WHEREAS, certain alcohol establishment owners and operators have challenged this interpretation, contending that this provision of the Zoning Ordinance only applies to existing premises that have never obtained an alcohol CUP and not to those which obtained an alcohol CUP but whose operations have been discontinued for more than one year; and WHEREAS, Section 9.04.08.28.070 is more restrictive than Section 9.04.18.020, providing that an existing use in the CM District shall not be considered existing if the use has not been in regular operation for a period of six months; and WHEREAS, in light of this issue of interpretation, the City Council directed staff to prepare a proposed interim ordinance is to clarify that existing premises which dispense alcoholic beverages for sale or other consideration that cease operation for a period greater than one year must obtain an alcohol CUP even if that establishment previously obtained an alcohol CUP, except that, for premises in the CM District, the time period shall be six months; and 2 WHEREAS, the City Council found and declared that the public health, safety and general welfare require adoption of an interim ordinance clarifying that all existing establishments which cease operation for more than one year, or for more than six months in the CM District, must obtain a new alcohol CUP to ensure that City review and approval of alcohol outlets occurs on a case-by-case basis and reflects the specific and current circumstances of the particular alcohol outlet, its location, the surrounding neighborhood and any potential problems relating to specific and current circumstances; and WHEREAS, the City Council further found that Santa Monica Municipal Code Section 9.04.10.18.020 should be clarified to provide that existing operations which have been discontinued for a period of over one year, or six months in the CM District, shall be required to obtain an alcohol conditional use permit prior to resuming business whether or not a conditional use permit was obtained in the past for the premises; and WHEREAS, pending completion of these permanent revisions, in order to protect the public health, safety, and welfare, it was necessary on an interim basis to clarify that existing operations which have been discontinued for a period of over one year, or six months in the CM District, shall be required to obtain an alcohol conditional use permit prior to resuming business whether or not a conditional use permit was obtained in the past for the premises; and WHEREAS, in light of these concerns, the City Council adopted Ordinance Number 2105 (CCS) on December 16, 2003, which clarified that business establishments with alcohol CUP's must obtain new alcohol CUP's if the establishment 3 ceases operating for a period in excess of one year, except for premises in the CM District, the time period shall be six months, and extended the terms of Ordinance Number 2105 (CCS) by adopting Ordinance Number 2114 (CCS) on January 27, 2004, by adopting Ordinance No. 2150 (CCS) on February 8, 2005, and by adopting Ordinance No. 2199 on July 25, 2006; and WHEREAS, Ordinance Number 2199 will be of no further force and effect after May 24, 2008; and WHEREAS, the proposed amendment is consistent in principle with several of the goals, objectives and policies of the General Plan in that the amendment is consistent with the Land Use and Circulation Elements Policy 1.2.4 which states: "Limit the number or control the location or otherwise mitigate the impact of commercial uses such as alcohol outlets...where an over-concentration of the use would have, or the operation of such uses might have an adverse impact on the surrounding neighborhood" and in that the ordinance clarifies that alcohol establishments that have been closed for more than one year must obtain a new Conditional Use Permit prior to commencing operation; and WHEREAS, the public health, safety and general welfare requires the adoption of the provisions to ensure the City review and approval of all alcohol outlets occurs on a case-by-case basis and reflects the specific and current circumstances of the particular alcohol outlet, its location, the surrounding neighborhood and any potential problems relating to specific and current circumstances, 4 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Santa Monica Municipal Code Section 9.04.10.18.020 is hereby amended to read as follows: 9.04.10.18.020 Applicability. No person shall establish a new business or use dispensing, for sale or other consideration, alcoholic beverages, including beer, wine, malt beverages, and distilled spirits for on-site or off-site consumption without first obtaining a conditional use permit. Existing alcohol outlets shall also obtain a conditional use permit except where the premises either retain the same type of retail liquor license within a license classification or the licensed premises are operated continuously without substantial change in mode or character of operation. Existing premises shall not be considered to be operating continuously and a conditional use permit shall be required where operations have been discontinued for a period of over one year except that, for premises in the CM District, the time period shall either be six months or the time period established in Section 9.04.08.28.070(g), or any successor legislation thereto, 5 whichever is longer. Existing premises where operations have been discontinued for these time periods shall be required to obtain an alcohol conditional use permit prior to resuming business whether or not an alcohol conditional use permit was obtained in the past for the premises. A substantial change in mode or character of operation shall include, but is not limited to, a ten percent increase in the floor area of the premises, atwenty-five percent increase in the shelf area used for the display of alcoholic beverages, or a twenty-five percent increase in the number of seats in any restaurant which serves alcoholic beverages. SECTION 2. Any provision of the Santa Monica Municipal Code or appendices thereto, inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, are hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. SECTION 3. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each and every section, subsection, sentence, clause, 6 or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional. SECTION 4. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. This Ordinance shall be effective 30 days from its adoption. The Director of Planning and Community Development shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: MA HA JON ' MOUTRIE ~-~ City Attorney 7 Approved and adopted this 25th day of M. State of California ) County of Los Angeles) ss. City of Santa Monica ) I, Maria M. Stewart, City Clerk of the City of Santa Monica, do hereby certify that the foregoing Ordinance No. 2254 (CCS) had its introduction on oz/z6/DS ,and was adopted at the Santa Monica City Council meeting held on o3/25/os , by the following vote: Ayes: Council members: Censer, Holbrook, McKeown, O'Connor, Shriver Mayor Pro Tem Bloom, Mayor Katz Noes: Council members: None Abstain:. Council members: None Absent: Council members: None A summary of Ordinance No. 2254 (CCS) was duly published pursuant to California Government Code Section 40806. ATTEST: -Maria M. Stewa ~Ci