SR-400-04 (7)
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City Council Meeting 1-25-05 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Extension of Interim Ordinance Clarifying that Business Establishments
with Alcohol CUP’s Must Obtain New Alcohol CUP’s if the Establishment
Ceases Operating for a Period in Excess of One Year, Except That, for
Premises in the CM District, the Time Period Shall Be Six Months
Introduction
This report recommends that the City Council introduce for first reading an interim
ordinance extending for two years an interim ordinance clarifying that business
establishments with alcohol Conditional Use Permits (CUP’s) must obtain new alcohol
CUP’s if the establishment ceases operating for a period in excess of one year, except
that, for premises in the CM (Main Street Commercial) District, the time period shall be
six months.
Background
On December 16, 2003, the City Council adopted Ordinance Number 2105 (CCS), an
interim, 60 day ordinance that contained these provisions. The Council then extended
the provisions contained in Ordinance Number 2105 (CCS) by adopting Ordinance
Number 2114 (CCS) on January 27, 2004. That ordinance will expire on March 11,
2005, unless the attached proposed interim ordinance is adopted.
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Municipal Code Section 9.04.18.020 requires all new businesses or uses selling alcohol
to obtain a CUP. Additionally, that Section also provides that a CUP is required for
existing premises if operations have been discontinued for a period of more than one
year. Existing Municipal Code Section 9.04.08.28.070(g) establishes a six month period
in the CM District. Planning staff interprets the requirement to apply to all existing
premises, including those that have previously obtained an alcohol CUP. Thus, if a
business which sold alcohol and had a CUP ceased operation for a year, a new CUP
would be required. Others have disputed staff’s interpretation and contended that
Section 9.04.18.020 applies only to existing premises that never obtained an alcohol
CUP. On December 16, 2003, the City Council adopted Ordinance Number 2105
(CCS) to resolve this issue. Ordinance Number 2105 (CCS) clarifies that any existing
premises upon which alcoholic beverages are dispensed and which ceases operation
for more than one year, or for six months in the CM District, must obtain an alcohol CUP
even if a CUP was previously obtained for that location. On January 27, 2004, the City
Council extended the provisions by adopting Ordinance Number 2114 (CCS).
Discussion
The proposed interim ordinance is intended to ensure continuity with alcohol CUP
requirements through March 11, 2007. This two year period provides the Council
adequate time to amend the City’s Zoning Ordinance permanently in conjunction with
the Land Use Element/Zoning Ordinance update.
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Financial/Budget Impact
Because the proposed ordinance is arguably declarative of existing law, and certainly
declarative of existing practice, it will not generate new costs. Insofar as it clarifies the
Municipal Code and thereby obviates disputes, it may result in some indirect savings.
Recommendation
It is respectfully recommended that the accompanying ordinance be introduced for first
reading.
PREPARED BY: Marsha Jones Moutrie, City Attorney
Barry Rosenbaum, Senior Land Use Attorney
ATTACHMENT: Proposed Interim Ordinance (See below)
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Council Meeting 1-25-05 Santa Monica, California
ORDINANCE NUMBER ____ (CCS)
(City Council Series)
AN INTERIM ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA
MONICA EXTENDING INTERIM ORDINANCES CLARIFYING THAT BUSINESS
ESTABLISHMENTS WITH ALCOHOL CUP’S MUST OBTAIN NEW ALCOHOL CUP’S
IF THE ESTABLISHMENT CEASES OPERATING FOR A PERIOD IN EXCESS OF
ONE YEAR, EXCEPT THAT, FOR PREMISES IN THE CM DISTRICT, THE TIME
PERIOD SHALL BE SIX MONTHS
THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS
FOLLOWS:
SECTION 1. Findings and Purpose. The City Council finds and declares:
(a) In 1985, the City adopted Part 9.04.10.18 of the Zoning Ordinance, Alcohol
Outlets, to regulate establishments dispensing alcoholic beverages.
(b) 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.
(c) 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.
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(d) 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.
(e) 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.
(f) 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.
(g) 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.
(h) 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.
(i) The purpose of this 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.
(j) The City Council finds and declares 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
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and current circumstances of the particular alcohol outlet, its location, the surrounding
neighborhood and any potential problems relating to specific and current circumstances.
(k) Therefore, 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.
(l) Pending completion of these permanent revisions, in order to protect the
public health, safety, and welfare, it is 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.
(m) 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 ceases operating for a
period in excess of one year, except for premises in the CM District, the time period
shall be six months. The City Council extended the terms of Ordinance Number 2105
(CCS) by adopting Ordinance Number 2114 (CCS) on January 27, 2004. However,
Ordinance Number 2114 (CCS) will expire on March 11, 2005 unless it is extended.
Adoption of the proposed extension ordinance will provide adequate time to amend the
City’s Zoning ordinance on a permanent basis in conjunction with the Land Use
Element/Zoning Ordinance update.
(n) As described above, there exists a current and immediate threat to the public
safety, health, and welfare should this interim ordinance not be adopted. Consequently,
it is necessary for this ordinance to extend the provisions of Ordinance Number 2114
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(CCS) up to and including March 11, 2007, establishing on an interim basis the
following development standards:
SECTION 2. Alcohol Outlets.
Existing alcohol outlets shall be required to obtain a conditional use permit
pursuant to Section 9.04.10.18.010 et seq. unless the following conditions are met:
(a) The premises retain the same type of retail liquor license within a license
classification and
(b) 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
be six months. Existing premises where operations have been discontinued for a period
of over one year, or six months in the case of premises in the CM District, 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, a twenty-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 3. This Ordinance is declarative of existing law.
SECTION 4. This Ordinance shall be of no further force or effect after March 11,
2007, unless prior to that date, after a public hearing, noticed pursuant to Santa Monica
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Municipal Code Section 9.04.20.22.050, the City Council, by majority vote, extends this
interim ordinance.
SECTION 5. 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, is hereby repealed or modified to that extent necessary
to affect the provisions of this Ordinance.
SECTION 6. 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 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,
or phrase not declared invalid or unconstitutional without regard to whether any portion
of the ordinance would be subsequently declared invalid or unconstitutional.
SECTION 7. 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 become effective 30
days from its adoption.
APPROVED AS TO FORM:
____________________________
MARSHA JONES MOUTRIE
City Attorney
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