SR-120903- (2)
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City Council Meeting 12-9-03 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Proposed Interim Ordinance Clarifying That A Business With An Alcohol
Conditional Use Permit (CUP) Must Obtain a New CUP If Operations
Cease For More Than A Year
Introduction
Council has noted that there may be some ambiguity in the Municipal Code provision
that relates to alcohol CUPs for businesses that cease operating for a period in excess
of one year. The City takes the position that the Code requires the owner to obtain a
new alcohol CUP under this circumstance. The attached proposed ordinance, which is
presented to the Council for first reading, will clarify the requirement and eliminate any
present ambiguity in the Code.
Background
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. 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
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have disputed staff’s interpretation and contended that Section 9.04.18.020 applies only
to existing premises that never obtained an alcohol CUP.
Discussion
The attached proposed ordinance would resolve any ambiguity that may exist in the
present Code section. The ordinance would clarify that any existing premises upon
which alcoholic beverages are dispensed and which ceases operation for more than
one year must obtain an alcohol CUP even if a CUP was previously obtained for that
location. The ordinance would make this clarification by specifying that if operations
cease for more than one year, a new CUP must be obtained whether or not one was
obtained in the past.
Financial/Budget Impact
Because this 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: Suzanne Frick, Director of Planning and
Community Development
Marsha Jones Moutrie, City Attorney
Barry Rosenbaum, Senior Land Use Attorney
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Council Meeting 12-9-03 Santa Monica, California
ORDINANCE NUMBER ____ (CCS)
(City Council Series)
AN INTERIM ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA
MONICA 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
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 9.0410.18 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.
(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.
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(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) The purpose of this interim ordinance is to clarify that any existing premises
which dispense alcoholic beverages for sale or other consideration that ceases
operation for a period greater than one year must obtain an alcohol CUP even if that
establishment previously obtained an alcohol CUP.
(i) 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 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.
(j) 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 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.
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(k) 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 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) 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 establish 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. Existing premises which have been discontinued for a period
of over one year 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.
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SECTION 3. This Ordinance is declarative of existing law.
SECTION 4. This Ordinance shall be of no further force or effect sixty days after
its effective date unless prior to that date, after a public hearing, noticed pursuant to
Santa Monica 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.
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APPROVED AS TO FORM:
____________________________
MARSHA JONES MOUTRIE
City Attorney
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