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HomeMy WebLinkAbout04 ABC Hours of OperationITEM #4 Inter-Com DATE: MAY 10, 2011 TO: PLANNING COMMISSION FROM: COMMUNITY DEVELOPMENT DEPARTMENT SUBJECT: ALCOHOLIC BEVERAGE ESTABLISHMENT HOURS OF OPERATION SUMMARY OF THE ISSUE Restaurants, bars, and retail establishments require City authorization prior to obtaining a license from the California Department of Alcoholic Beverage Control (ABC) for on and/or off-site alcoholic beverage sales. City authorization is often provided through the approval of a conditional use permit (CUP). Within these approved conditianal use permits are limitations on business hours of operation (typically those requested by the business owner), with the caveat that subsequent requests to modify the business hours may be considered and approved by the Director of Community Development. Following CUP approval, the Director of Community Development routinely receives and acts on numerous requests to extend a business' hours of operation. Staff is proposing to modify the current practice so that alcohol related business hours limitations can be standardized and reduce the need for subsequent requests for business hours modifications while continuing to be sensitive to the needs of the community. BACKGROUND The California Department of Alcoholic Beverages Control (ABC) administers the provisions of the Alcoholic Beverage Control Act to foster and protect the health, safety, welfare, and economic well-being of the people of the State. The Department of ABC issues a large variety of licenses throughout Orange County. The Department of ABC currently restricts all "on sale" (consume-on} or "off sale" (carry-off) alcohol sales to 2:00 a.m. A sample of the Department of ABC licenses issued in Tustin, along with a summary explanation of license limitations is shown in Exhibit 1. Businesses that propose to sell alcohol provide the Department of ABC with City authorization prior to obtaining a license for on and/or off-site alcoholic beverage sales. City approval is often provided through the approval of a conditional use permit (CUP). The Tustin City Code provides no specific guidance or limitations on an alcoholic beverage sales establishment's hours of operation. Some older existing alcoholic sales establishments predate the zoning code requirement for a CUP, with business hours limited only by Department of ABC regulations. Planning Commission Report Alcoholic Beverage Establishment Hours of Operation May 10, 2011 Page 2 The public notice and staff report, City department input (police, fire, etc), public comments, and Planning Commission and Zoning Administrator discussion relies upon an understanding of the proposed business operation, as described in the CUP application, including the business' proposed hours of operation. An approving Resolution often includes a CUP condition that limits the hours of the business to that identified during CUP deliberation. The condition typically includes the caveat that subsequent requests to modify the establishment's business hours limitation may be considered and approved by the Director of Community Development. However, business hour proposals are typically inconsistent between applicants, even between applicants with similar businesses. The practice has resulted in the approval of similar establishments with dissimilar business hours. Following CUP approval, an approved business owner may observe that neighboring, competing businesses are operating later and seek City approval for comparable or later hours. In addition, staff has observed what might be a market trend among restaurant operators desiring to serve patrons food and drink later in the evening. Businesses can also request more than one extension, in an effort to keep up with a competitor or the market. Consequently, the Director of Community Development routinely receives and acts on numerous requests to extend approved business hours. DISCUSSION Staff believes that a more uniform approach should be initiated to "build-in" a standardized business hour "`ceiling" for alcohol sales establishments to ensure equitable treatment to all applicants and to eliminate most of the issues and discrepancies identified above. Tustin City Code Section 9277e(4) was recently supported by the Planning Commission and adopted by the Tustin City Council to allow outdoor restaurant seating areas until 11:00 p.m. (10:00 p.m. for outdoor areas in close proximity to residential uses). Staff believes that retail and restaurant businesses operating within an enclosed building should be allowed the flexibility to operate at least until 11:00 p.m. during weekdays, and until 12:00 a.m. on weekends, even if the business chooses to close earlier. Staff believes that requests to serve alcohol later than 11:00 p.m. during weekdays, and until 12:00 a.m. on weekends should continue to be carefully considered, as late night operations can sometimes pose concerns to adjoining property owners, other commercial tenants at or near the site, and Tustin Police and Community Development Department staff. However, operation of a properly managed establishment should have no impact on the community, regardless of whether the business closes at 12:00 a.m. or 2:00 a.m. Staff believes that requests to operate after 11:00 p.m. during weekdays, and 12:00 a.m. on weekends. should be considered and approved by the Planning Commission to allow input from the applicant, City Departments (including Police, Community Development, etc.) and the public prior to a determination being Planning Commission Report Alcoholic Beverage Establishment Hours of Operation May 10, 2011 Page 3 made on a request. The Planning Commission may approve, conditionally approve, or deny any requested alcoholic beverage establishment closing time. Na business may operate later than the 2:00 a.m. limitation established by the Department of ABC. Since the approach described above is a change of past practice, staff is requesting that the Planning Commission concur prior to its implementation. RECOMMENDATION That the Planning Commission concur with the following approach for conditioning/restricting the business hours of alcohol sales establishments as follows: 1. New CUP applications for alcohol sales establishments: Businesses proposing to close any time prior to 11:00 p.m. weekdays, 12:00 a.m. weekends, will be conditioned to close by 11:00 p.m. weekdays and 12:00 a.m. weekends. Businesses proposing to close any time after 11:00 p.m. weekdays, 12:00 a.m. weekends will be conditioned to close by 2:00 a.m. and scheduled for Planning Commission consideration/approval. Additional conditions of approval may also be included to: 1. Require businesses identified as a "restaurant" to serve food during all hours of operation. 2. Require the business and property owner to sign a recordable agreement stipulating that a violation of the CUP conditions of approval could result in issuance of an administrative citation, additional review by the Planning Commission, reduction of hours, or initiation of termination proceedings for the CUP. 3. Require annual staff review of the operation at the location to determine whether issues or concerns are occurring that might warrant additional action as described above. 2. Existing alcohol sales establishments with a previously issued CUP • Businesses with approved CUPS proposing to modify a closing time to any time prior to 11:00 p.m. weekdays, 12:00 a.m. weekends, will be administratively reviewed and approved by the Director of Community Development with a condition to close by 11:00 p.m. weekdays and 12:00 a.m. weekends. • Businesses with approved CUPs proposing to modify a closing time after 11:00 p.m. weekdays, 12:00 a.m. weekends will be conditioned by staff to Planning Commission Report Alcoholic Beverage Establishment Hours of Operation May 10, 2011 Page 4 close by 2:00 a.m. and forwarded to the Planning Commission for consideration as described above for new applications. It should be noted that the Planning Commission may also condition an alcohol establishment to have more restricted hours of operation than that recommended by staff. Dana L. Ogdon Assistant Director Elizabeth A. Binsack Director of Community Development Attachment: Exhibit 1 -ABC License Types in Tustin S:~Cdd W CREPORT~20111alcahollceevefagesreport3.doc Exhibit 1 T pe Exam le OFF SALE BEER & WINE - (Package Store) Mrs. Gooches, Sprouts, Whole Foods, Claro's 20 Authorizes the sale of beer and wine for Italian Market, 7 Eleven, Target, Big Lots consumption off the premises where sold. Minors are allowed on the remises. OFF SALE GENERAL - (Package Store) CVS Pharmacy, Vons, Costco, Henry's 21 Authorizes the sale of beer, wine and distilled Farmers Market, Total Wine & More {retail spirits for consumption off the premises where area), Trader Joes sold. Minors are allowed on the remises. ON SALE BEER ~ WINE -EATING PLACE The Crab Cooker, Lampost Pizza, Tommy's 41 - (Restaurant) Authorizes the sale of beer Sushi, Citrus Cafe, Rubio's, Beach Pit BBQ and wine for consumption on or off the premises where sold. Distilled spirits may not be on the premises (except brandy, rum, or liqueurs for use solely for cooking purposes), Must operate and maintain the licensed premises as a bona fide eating place. Must maintain suitable kitchen facilities, and must make actual and substantial sales of meals for consumption on the premises. Minors are allowed on the remises. ON SALE BEER & WINE -PUBLIC Total Wine & More (wine tasting area) 42 PREMISES - (Bar, Tavern) Authorizes the sale of beer and wine for consumption on or off the premises where sold. No distilled spirits may be on the premises. Minors are not allowed to enter and remain (see Section 25663.5 for exception, musicians). Food service is not required. ON SALE GENERAL -EATING PLACE - Quinn's Old Town Grill, Zito's Bar & Grill, EI 47 {Restaurant) Authorizes the sale of beer, wine Torito, Zov's Bistro, California Pizza Kitchen. and distilled spirits for consumption on the licenses premises. Authorizes the sale of beer and wine for consumption off the licenses premises. Must operate and maintain the licensed premises as a bona fide eating place. Must maintain suitable kitchen facilities, and must make actual and substantial sales of meals for consumption on the premises. Minors are allowed on the remises ON SALE GENERAL -PUBLIC PREMISES Godfather's, The Swinging Door, Devas 48 - (Bar, Night Club) Authorizes the sale of beer, wine and distilled spirits for consumption on the premises where sold. Authorizes the sale of beer and wine for consumption off the premises where sold. Minors are not allowed to enter and remain (see Section 25663.5 for exception, musicians). Food service is not re uired.