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SR-11-13-2012-7ACity of City Council Report Santa Monica' City Council Meeting: November 13, 2012 /1 Agenda Item: J 0 To: Mayor and City Council From: Marsha Jones Moutrie, City Attorney Subject: Ordinances Regulating the Commercial Operation of Residential Properties As Event Venues Recommended Action Staff recommends that the City Council either adopt the attached regular ordinance on second reading or adopt the attached proposed emergency ordinance if circumstances are determined to warrant emergency action. Executive Summary At its meeting of October 2 "d, Council considered complaints from neighbors about a series of large, night -time events at 2009 La Mesa Drive produced for the primary purpose of marketing the home for sale. In response, Council directed staff to return with an emergency ordinance banning such activity in the City's R -1 districts. Staff returned with an ordinance on October 23rd. After the public hearing, Council modified the prohibition in the proposed ordinance, revised it into a regular ordinance, and approved the ordinance on first reading. That ordinance is now presented for second reading and adoption. Also presented for Council consideration is the same emergency ordinance that was proposed on October 23rd. This emergency ordinance is presented in the event that the activities which have taken place most recently at 2009 La Mesa Drive warrant emergency action. Background Council members placed an item on the agenda for October 2nd in response to neighbors' complaints that night -time events at the single family residence at 2009 La Mesa Drive had created a nuisance and were disrupting quietude in their R -1 neighborhood. Among other things, neighbors testified that 2009 La Mesa Drive was being advertised as "The Rolling Stone's House of Rock" (The House of Rock), that the events included concert style performances, and that the traffic generated by the events imperiled the safety and welfare by interfering with access to their homes. At that 1 hearing, one of the owners of The House of Rock testified that she is in the business of "flipping" high -end homes and that the series of events was a clever marketing scheme. At the conclusion of the lengthy hearing, Council directed staff to return with an emergency ordinance that would prohibit the activities on October 23rd. Before that meeting, another large event was held at The House of Rock. It apparently did not significantly disrupt the neighborhood. As directed, staff presented a proposed emergency ordinance to Council on October 23rd. Again, many people testified, including both neighbors who opposed the marketing scheme for The House of Rock and supporters who claimed, among other things, that the events benefited worthy charities. After the hearing, Council approved the proposed ordinance on first reading with two modifications. One broadened the ordinance's prohibition, and the other made it a regular ordinance. Because concern was expressed that future events, including a widely - publicized Halloween event, might again severely disrupt the neighborhood, staff assured Council that it would return with both the second reading of the regular ordinance and the emergency ordinance. Discussion After the Council meeting of October 23rd, neighbors, the owners, and attorneys for both contacted City staff. Neighbors expressed their concerns about the then - upcoming Halloween party, asking that ample enforcement personnel be available to address any legal violations, particularly those causing safety risks. Owners asked that the street be closed the night of the event. City staff responded by formulating contingency plans for that evening. The street was not closed pursuant to the owner's request. (While safety personnel can and do close streets when necessary to preserve safety, they do so based upon their assessment of the exigencies of the moment; the City does not have the authority to close a public street at the request of a single property owner.) On. the night of the event, enforcement personnel monitored impacts, asking that noise be reduced on a couple of occasions. Apart from occasional spikes in noise, no legal violations were observed. 2 Since the last Council hearing, concern has also been expressed about possible code violations. These include, but are not limited to, the conversion of the attic into a recording studio and the installation of outdoor cooking facilities in the back yard. Staff is addressing these issues through its usual processes. They include interpreting the code, evaluating potential violations, issuing citations when appropriate and allowing an opportunity to correct any cited violations. The attorney for the neighbors has continued to complain that The House of Rock constitutes a commercial endeavor in an R -1 zone and therefore the City should halt the activity. As explained in the previous staff report, staff does not believe that a court would issue a temporary restraining order or preliminary injunction halting the events at The House of Rock based on the presently existing record and current local law. However, legal staff has communicated its willingness to carefully consider any legal authority to the contrary and noted that the City could opt to participate in any lawsuit (such as a nuisance action) that the neighbors might file to attempt to halt future events. As previously explained, staffs opinion is that local law should be modified to include an express prohibition against operating a residential property as an events facility. Accordingly, staff continues to support adoption of an ordinance. Two ordinances are proposed with this report. The first is the second reading of the ordinance approved on October 23`d. The second is the emergency ordinance that was proposed the same evening. The substantive modification that Council made to the ordinance on the 23`d has not been included in the emergency ordinance for the reasons previously explained. Staff recommends adopting the regular ordinance on second reading unless new circumstances have arisen that, in Council's judgment, necessitate emergency action. 3 Financial Impacts Adoption of either ordinance will not cause direct financial impacts to the City. Prepared by: Marsha Jones Moutrie, City Attorney Approved: Mars f€ a€ Jon s outrie L/ City A'tornzy� Attachments: Forwarded to Council: Rod Gould City Manager A. Proposed Ordinance for Second Reading B. Proposed Emergency Ordinance N Reference Ordinance No. 2412 (CCS).