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SR-9-C (22) ~ .. . 9--~ MJF) ., , f\ ~ Li; , .xl. LUTM:PB:DKW;DM:/CCTA9109.pcword.plan Santa Monica, California Council Mtg; March 24, 1992 TO: Mayor and City Council FROM: City Staff SUBJECT: Recommendation to Direct the city Attorney to Prepare An Ordinance Deleting Section 9049.4 of Subchapter 5J of the Zoning Ordinance (Section 9049.4 Provides an Exemption For Bona Fide Restaurants of 49 Seats Or Less From the Requirement For A conditional Use Permit To Sell Alcoholic Beverages) . Consideration May Also Be Given to Creation of Alternative Methods of Regulating Small, Bona Fide Restaurants. INTRODUCTION This report recommends that the city council consider the Planning Commissions recommendation to delete section 9049.4 of Subchapter 5J of the Zoning Ordinance, and therefore eliminate the exemption from Conditional Use Permit provisions for specified classes of alcohol outlets. Although the commission's consideration of the comprehensive alcohol-related amendments is still pending, the Commission is recommending that the change to the exemption process be implemented in advance of the comprehensive amendments. BACKGROUND On November 6, 1991, the Planning Commission approved a Resolution of Intention (Attachment A) , which declared the Commission's intention to consider a recommendation that the City Council delete Section 9049.4 of Subchapter 5J of the Zoning Ordinance. Deletion of the exemption provision would require - 1. - 9-(! ~AR " . ".,~ J "h- _ ~ ;:}:~_ . . , that all new restaurants proposing to sell alcoholic beverages obtain a Conditional Use Permit. On January 22, 1992, the Planning Commission voted to recommend approval of the proposed Text Amendment to the City Council by a vote of five to two. staff had recommended deletion of the CUP Exemption, but had suggested utilization of a zoning Administrator Use Permit for small, bona fide restaurants with less then 50 seats. ANALYSIS section 9049.2 of the zoning Ordinance states that a Conditional Use Permit is required in order for any new business to obtain an alcohol license for on-site or off-site sales of alcohol. Sec- tion 9049.4 of the Zoning Ordinance gives the Zoning Administra- tor the authority to grant an Exemption from the requirements for a Conditional Use Permit for restaurants or "bona fide" public eating places which meet certain criteria. Among these criteria are the requirements that the establishment be a sit-down res- taurant with no bar area, no off-site sales, no dancing or enter- tainment and no more than 50 seats. In the past two years, approximately 20 Alcohol Exemptions have been applied for and approved by the Zoning Administrator. The approval of these applications has been considered a II non- discretionaryll action, based on the applicant's compl iance with the criteria for approval. Recently however, the City Attorney indicated that there is greater discretion to deny Exemptions, but that given the lack of clarity in the Exemption section, de- nial of projects meeting the exemption criteria may, in some - 2 - . _ c cases, be problematic. Due to the number of alcohol outlets in the City, the Planning Commission has raised the issue of the appropriateness of the Exemption process for alcohol outlets. On March 4, 1992, the Planning commission considered an appeal filed by commissioner Jennifer Polhemus regarding the Zoning Ad- ministrators issuance of an Alcohol Exemption for Earthbeat Bis- tro, a 50 seat restaurant proposed at 1232 Third street Prome- nade. The commission denied the appeal and upheld the Exemption by a vote of five to onel with one abstention. In approving the Exemption, the Commission added several conditions of approval from the standard list of conditions used for alcohol related Conditional Use Permits. The City Attorney I s office has indi- cated that the Zoning Administrator, or Planning Commission on appeal I may add conditions of approval to Alcohol Exemptions. Previously, the Commission upheld the approval of an Alcohol Ex- emption for the "Cock and Bull" on Lincoln Boulevard I and denied an Alcohol Exemption for the lunch counter at Newberry's on wil- shire Boulevard. Deletion of the Alcohol Exemption would result in the requirement that all new alcohol outlets, regardless of size or mode of oper- ation, require approval of a Conditional Use Permit by the Plan- ning Commission, or City Council on appeal. In approving the Conditional Use Permit, the Planning commission must make the standard alcohol findings (Attachment B), and may impose condi- tions on the operation of the establishment. The elimination of the exemption would give the Planning Commission control over the - 3 - ~ issuance of alcohol license for all outlets, including small res- taurants. In doing so, this would also increase the number of Conditional Use Permit applications on the Planning Commission case load. One of the concerns regarding the use of the alcohol exemption appears to be the fact that the approval of the exemption is sub- stantially non-discretionary if the establishment meets the criteria cited in section 9049.4 (Attachment C). As an alterna- tive to the existing exemption process, staff had recommended that the Planning commission consider the use of a Zoning Ad- ministrator Use Permit process for small bona fide restaurants with less than 50 seats. This type of permit would be subject to a Zoning Administrator hearing (including a public notice and mailing) I and would require that the Zoning Administrator make findings for the issuance of the Use Permit. The findings would include the following: (a) The proposed use will not adversely affect the welfare of neighborhood residents in a significant manner. (b) The proposed use will not contribute to an undue con- centration of alcohol outlets in the area. (c) The proposed use will not detrimentally affect nearby neighborhoods considering the distance of the alcohol out- let to residential buildings, churches, schools, hospi- tals, playgrounds, parks, and other existing alcohol outlets. - 4 - - . (d) The proposed use is compatible with existing and po- tential uses within the general area. (e) Traffic and parking congestion will not result. ( f) The public health, safety, and general welfare are protected. (g) No harm to adjacent properties will result. (h) The objectives of the General Plan are secured. In addition to making findings for the approval, the Zoning Ad- ministrator could impose conditions on the operation of the al- cohol outlet. The conditions could include the standard list of alcohol conditions used by the Planning Commission for Condition- al Use Permits (Attachment D) , as well as any other conditions determined by the Zoning Administrator to be appropriate. The Zoning Administrator action would be appealable to the Planning commission. The use of the Zoning Administrator Use Permit would accomplish the goal of requiring findings for all alcohol outlets and would also allow the imposition of specific conditions to address indi- vidual situations. At the same time, it would maintain the ability for small restaurants to be approved without having to go through the conditional Use Permit process, likely with a savings in both time and money as compared to the Conditional Use Permit process. - 5 - . . In discussing the proposed Text Amendment, the Planning commis- sion considered the idea of utilizing the zoning Administrator Use Permit process for restaurants currently eligible for the CUP exemption. While some of the Commissioners expressed support for the idea of having a Use Permit process as opposed to requiring a CUP for all alcohol outlets, the five Commissioners who voted to delete the exemption felt that until a Use Permit process could be established, in order to ensure that all new alcohol outlets are subject to a discretionary review, the exemption process should be eliminated. The two commissioners who voted against the proposed Text Amendment felt that there should be an alterna- tive to the CUP process and that the issue should be considered in the context of the overall Alcohol POlicy. The Planning Com- mission consideration of the Alcohol policy is scheduled for March 251 1992. Conclusion The Planning Commission has expressed a concern regarding the non-discretionary approval of alcohol outlets for small res- taurants and has voted to eliminate the Exemption process. Elimination of the Exemption would result in all applications for alcohol licenses having to be reviewed by the Planning Commis- sion, further crowding Commission and potentially Council agen- das. The elimination of the Exemption would lump all alcohol outlets into one category. The original intent of the Exemption was to make the distinction between small, bona fide restaurants and other outlets such as bars and nightclubs. This distinction - 6 - would be lost with the elimination of the Exemption. Establish- ment of a Zoning Administrator Use Permit would eliminate the "non-discretionaryU approval of such permits, but would still allow an alternative to the Conditional Use Permit process for small, "bona fide" restaurants. BUDGET/FINANCIAL IMPACT The recommendation presented in this report does not have any budget or fiscal impact. RECOMMENDATION It is respectfully recommended that the council review the Planning commission recommendation and consider the following options: 1) Elimination of the CUP Exemption process requiring that all new restaurants proposing to sell alcoholic beverages be subj ect to a Conditional Use Permit: or, 2) Elimination of the CUP Exemption process and establishment of a Use Permit process to allow Zoning Administrator approval of alcohol sales for small, bona fide restaurants (this option would require that staff return to the Commission with the format and language for the Use Permit process) . staff recommends Option 2. If the Council wishes to adopt the Commission's recommendation, the following findings are recommended: FINDINGS l. The proposed amendment is consistent in principle with the goals, objectives, policies, land uses, and programs specified in the adopted General Plan in that the proposed approval process for alcohol outlets would ensure that such uses would not have an adverse impact on the surrounding community. - 7 - 2. The public health, safety, and general welfare requires the adoption of the proposed amendment in that it would ensure that alcohol outlets are reviewed with an adequate level of discretion. Prepared by: D. Kenyon Webster, Planning Manager David Martin, Associate Planner Planning Division Land Use and Transportation Management Department Attachments: A. Planning commission Resolution B. Alcohol outlet Findings C. Code section 9049.4 D. Alcohol Outlet Conditions of Approval .oM PC/CCTA9109 03/18/92 - 8 - e e ATTACHMENT A RESOLUTION NO. (Planning Commission Series) A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF SANTA MONICA DECLARING ITS INTENTION TO RECOMMEND AMENDMENT OF THE CITY OF SANTA MONICA COMPREHENSIVE LAND USE AND ZONING ORDINANCE THE PLANNING COMMISSION OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. Pursuant to the Santa Monica Municipal Code Section 9120.2, the Planning commission does hereby announce its intention to recommend that the city Council delete the city of Santa Monica Comprehensive Land Use and Zoning Ordinance Section 9049.4 of Subchapter 5J as set forth in Exhibit A. SECTION 2. The Planning Director shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. - 1 - A111\CHMWT A e e Date Adopted: Adopted and approved this day of 1991. Chair I hereby certify that the foregoing Resolution of Intention No. was duly and regularly introduced and approved at a meeting of the Planning commission on the day of 1991 by the fallowing vote: Ayes: Planning Commissioners: Noes: Planning Commissioners: Abstain: Planning Commissioners: Absent: Planning Commissioners: ATTEST: Planning Director APPROVED AS TO FORM: ROBERT M. MYERS City Attorney w/alexpres - 2 - . e e Subchapter 5J. Alcohol Outlets. Section 9049.1- Purpose and Findings. (a) Recent empirical studies demonstrate that there is a complex interrelationship between the availability of alcohol, the consumption of alcohol, and reSUlting community problems such as public drunkenness, drunk driving, traffic accidents I violent crime, noise, and nuisance. The City of Santa Monica contains an overconcentration of alcohol outlets at which alcoholic beverages are sold on premises. The number of total active retail alcohol outlets in the city has increased in recent years. (b) In addition to traditional alcohol outlets such as bars, restaurants, liquor stores, and supermarkets, a variety of new types of alcohol outlets are beginning to appear or are being proposed in Santa Monica and other communities. There is continuing and increasing community concern over the proliferation of alcohol outlets in the city, as is evident from the Main Street Plan, the pico Neighborhood Community Plan, and the Land Use and Circulation Elements of the City's General Plan. There is a current and immediate threat to the public health, safety, and welfare, and the unconditional approval of additional alcohol outlets would result in a threat to public health, safety, and welfare. (c) While the issuance of liquor licenses is the exclusive province of the state, local jurisdictions are permitted to establish reasonable controls and conditions on the location of alcohol outlets. It is necessary to establish a control measure that will permit the city to review and approve new alcohol outlets on a case by case basis and to condition that approval based on the specific type of alcohol outlet, neighborhood location, and potential problems involved. Section 9049.2. 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. A Conditional Use Permit shall be required for existing premises where operations have been discontinued for a period over one year. A substantial change in mode or character of operation shall include, but is not limited to, a 10% increase in the floor area of the premises, a 25% increase in the shelf area used for the display of alcoholic beverages I or a 25% increase in the number of seats in any restaurant which serves alcoholic beverages. Section 9049.3. Approval. The City Planning Commission, or the City Council on appeal, shall have the authority to approve the use of a property for a business or use dispensing, for sale - 1 - . e e or other consideration, alcoholic beverages, including beer, wine, malt beverages I and distilled spirits for on-site or off-site consumption, and shall issue a Conditional Use Permit if the following findings can be made in an affirmative manner: (a) The proposed use will not adversely affect the welfare of neighborhood residents in a significant manner. (b) The proposed use will not contribute to an undue concentration of alcohol outlets in the area. (c) The proposed use will not detrimentally affect nearby neighborhoods considering the distance of the alcohol outlet to residential buildings, churches, schools, hospitals I playgrounds I parks, and other existing alcohol outlets. (d) The proposed use is compatible with existing and potential uses within the general area. (e) Traffic and parking congestion will not result. ( f) The publ ic health, safety, and general wel fare are protected. (g) No harm to adjacent properties will result. 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The proposed use and location are in accordance with good zoning practice, in the public interest, and necessary that substantial justice be done in that 2. The proposed use will not adversely affect the welfare of neighborhood residents in a significant manner in that 3. The proposed use will not contribute to an undue concentration of alcohol outlets in the area in that 4. The proposed use will not detrimentally affect nearby neighborhoods considering the distance of the alcohol outlet to residential buildings, churches I schools I hospitals, playgrounds I parks, and other existing alcohol outlets in that 5. The proposed use is compatible with existing and potential uses within the general area in that 6. Traffic and parking congestion will not result from the proposed use in that 7. The public health, safety, and general welfare are protected in that 8. No harm to adjacent properties will result in that 9. The proposed use is consistent with the objectives of the General Plan in that - 1 - A1\AG\\-uaJI B . (From Municipal Code) SECTION 9049.4. Exemptions. The zoning Administrator shall have the authority to grant an exemption fro the provisions of this Subchapter for restaurants or "bona-fide" public eating places which offer for sale or dispense for consideration alcoholic beverages including beer or wine incidental to meal service. The exemption shall be approved in writing by the Zoning Administrator and shall be subject to the right of appeal to the Planning Commission as provided in Subchapter lOL. The exemption shall only be approved if the applicant agrees in writing to comply with the following criteria and conditions: (a) The premises contains a kitchen or food-serving area in which a variety of food is prepared and cooked on the premises. (b) The primary use of the premises is for sit-down service to patrons. (c) The premises serve food to patrons during all hours the establishment is open for customers. (d) The premises only serve alcohol in a dining area and not in an alcohol serving area that is separate from the dining area. (e) Adequate seating arrangements for sit-down patrons are provided on the premises not to exceed a seating capacity of 50 persons. (f) Any take-out is only incidental to the primary sit-down use and does not include the sale or dispensing for consideration of alcoholic beverage or beer or wine. (g) No alcoholic beverages or beer or wine are sold or dispensed for consumption beyond the premises. (h) No dancing or live entertainment is permitted on the premises. pc/alex - 1 - A1\A-Q\M 6lT C (From Standard Menu of Conditions) ALCOHOL OUTLET CONDITIONS 1. The restaurant shall not serve alcoholic beverages in the bar area after midnight but may continue to sell alcoholic beverages in the dining area. 2. parking lot illumination shall be provided and maintained. 3. The owner shall prohibit loitering in the parking area and shall control noisy patrons leaving the restaurant. 4. The primary use of the premises shall be for sit-down meal service to patrons. Alcohol shall not be served to persons except those intending to purchase meals. 5. In order to maintain the primary use of the premises for sit-down meal service, patrons shall not be permitted to use the bar unless they are waiting to be seated for meal services. 6. The premises shall maintain a kitchen or food-serving area in which a variety of food is prepared and cooked on the premises. 7. The premises shall serve food to patrons during all hours the establishment is open for customers. 8. Seating arrangements for sit-down patrons shall not exceed seats. In no instance shall the establishment be occupied by more than persons. 9. Take out service shall be only incidental to the primary sit-down use. 10. No alcoholic beverage shall be sold for consumption beyond the premises. 11. No dancing or live entertainment shall be permitted on the premises. 12. The primary use of the outdoor dining area shall be for seated meals service. Patrons who are standing in the outdoor seating area shall not be served. 13. If located in a district other than the C2, C3 or C3C, permitted hours of operation shall be 6 a.m. to 12:00 a.m. sundaY-Thursday, and 6 a.m. to 1:00 a.m. Friday and saturday. In the C2 district, permitted hours shall be 7 a.m. to 10 p.m. Sunday-Thursday, and 7 a.m. to 11 p.m. Friday and Saturday. In the C3 or C3C districts, permitted hours shall be 6 a.m. to 1: 00 a.m. Sunday-Thursday, and 6 a.m. to 2:00 a.m. Friday and -2- ~ 0 Saturday. No "after hoursll operations shall be permitted. Alcohol service to any outdoor seating area adjacent to a public street or sidewalk shall cease one hour in advance of the operating hours otherwise permitted. 14. No expansion in number of seats, intensity of operation, or outdoor areas shall occur without prior approval from the city of Santa Monica and state ABC. 15. Prior to issuance of a Certificate of occupancy, or a business license, as applicable, a security plan shall be submitted to the Chief of Police for review and approval. The plan shall address both physical and operational security issues. 16. Prior to issuance of a certificate of Occupancy, or a business license, as applicable, the operator shall submit a plan for approval by the Director of Planning regarding employee alcohol awareness training programs and policies. The plan shall outline a mandatory alcohol awareness training program for all employees having contact with the Public and shall state management's policies addressing alcohol consumption and inebriation. The operator shall provide city with an annual compliance report regarding compliance with this condition. This project shall be subject to any future City-wide alcohol awareness training program condition affecting similar establishments. The plan shall also set forth a "designated driver" program, which shall be offered by the operator of the establishment to patrons. 17. Prior to issuance of a building permit or business license, whichever is sooner, the design of the entryway to the establishment shall be reconfigured to provide for double doors to mitigate possible noise impacts. 18. Final plans for any changes to exterior design, landscaping, trash enclosures, and/or signage shall be subject to review and approval by the Architectural Review Board. 19. Minor amendments to the plans shall be subject to approval by the Director of Planning. An increase of more than 10% of the square footage or a significant change in the approved concept shall be subject to Planning Commission Review. Construction shall be in substantial conformance with the plans submitted or as modified by the Planning Commission, Architectural Review Board, or Director of Planning. 20. The applicant shall comply with all legal requirements regarding provisions for the disabled, including those set forth in the California Administrative Code, Title 24, Part 2. - 3 - ~ 21. Refuse areas, storage areas, and mechanical equipment shall be screened in accordance with Sec. 9127J.2-4 (SMMC). Refuse areas shall be of a size adequate to meet on-site need. 22. The operation shall at all times be conducted in a manner not detrimental to surrounding properties or residents by reason of lights, noise, activities, parking, or other actions. 23. No noise generating compressors or other such equipment shall be placed adjacent to neighboring residential buildings. 24. Alcohol shall not be served in any disposable container such as disposable plastic or paper cups. 25. No video or other amusement games shall be permitted on the premises. 26. Within thirty (30) days from date of approval (if approved) the applicant shall provide a copy of the statement of Official Action for this approval to the local office of the state Alcoholic Beverage Control department. 27. This permit shall expire one year from the effective date of approval unless required ABC permits are obtained. One ninety (90) day extension of the one year period may be permitted if approved by the Director of Planning. Applicant is on notice that an extension may not be granted if development standards relevant to the project have changed since project approval. 28. Applicant is on notice that all temporary signage is subject to the restrictions of the city sign ordinance. 29. Any new restaurant at the site with fewer than 50 seats capacity shall install a grease interceptor with minimum 750 gallons static holding capacity in order to pretreat sewered grease. Facilities with greater than 50 seats are required to install an interceptor with 1000 gallons mini- mum holding capacity. The General Services Department may modify the above requirements only for good cause. Specifically, the facility must demonstrate to the satis- faction of the Industrial Waste Section and Building and Safety Division that interceptor installation is not feasible at the site in question. In such cases where modifications are granted I grease traps will be required in the place of an interceptor. Building permi t plans shall show the required installation. - 4 -