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HomeMy WebLinkAbout18 SECOND READING AND ADOPTION OF ORDINANCE NO. 14931 YO AGENDA REPORT MEETING DATE TO: FROM: SUBJECT: SUMMARY: SEPTEMBER 4, 2018 JEFFREY C. PARKER, CITY MANAGER ERICA N. YASUDA, CITY CLERK Agenda Item 18 Reviewed: City Manager Finance Director N/A SECOND READING AND ADOPTION OF ORDINANCE NO. 1493 Ordinance No. 1493 proposes to amend Article 9 Chapter 2 of the Tustin City Code (TCC) to update the standards and guidelines related to new alcoholic beverage sales establishments. The Code Amendment would allow any commercially or industrially zoned property to request approval for an on-site alcoholic beverage sales license with approval of a conditional use permit (CUP); establish new standards and operational guidelines; and, provide processes for issuance and/or revocation of CUPs for sales establishments. RECOMMENDATION: Have second reading by title only and adoption of Ordinance No. 1493. BACKGROUND: On July 17, 2018, the City Council had first reading by title only of the following Ordinance: ORDINANCE NO. 1493 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, AMENDING TUSTIN CITY CODE ARTICLE 9 CHAPTER 2, SECTIONS 9232a1.(a), 9241a1., 9252j3.(c), 9271dd, AND 9299(3)(8) RELATING TO ALCOHOLIC BEVERAGE SALES ESTABLISHMENTS Attachment: Ordinance No. 1493 ORDINANCE NO. 1493 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, AMENDING TUSTIN CITY CODE ARTICLE 9 CHAPTER 2, SECTIONS 9232a1.(a), 9241a1., 9252j3.(c), 9271dd, AND 9299(3)(g) RELATING TO ALCOHOLIC BEVERAGE SALES ESTABLISHMENTS. The City Council of the City of Tustin does hereby ordain as follows: Section 1. The City Council finds and determines as follows: A. The Zoning Code, Planned Community District regulations, and Specific Plans were adopted to regulate land use to protect health safety and welfare. B. The Alcoholic Beverage Sales Establishment Guidelines were adopted by the Planning Commission to provide policies, definitions, findings, and recommended conditions of approval to promote orderly development and mitigate impacts typically associated with alcoholic beverage sales establishments to protect the public health, safety, and welfare. C. An amendment to the Alcoholic Beverage Sales Establishment Guidelines and the Tustin City Code is needed to provide guidance to promote new trending evolving businesses, stimulate economic development, provide orderly development, and protect the public health, welfare and safety by defining on and off-site sales alcoholic beverage sales establishments, identifying desirable project characteristics, and setting forth recommended findings and conditions of approval for discretionary applications for alcoholic beverage sales establishments. D. That the City Council and Planning Commission held a joint workshop on February 21, 2017, to discuss alcoholic beverage sales and consumption regulations and agreed they are overly restrictive. E. That the Planning Commission held an alcoholic beverage sales workshop on September 12, 2017, and provided input for staff concerning proposed amendments to the Tustin City Code and the Alcoholic Beverage Sales Establishment Guidelines. F. That the proposed code amendment would: require Conditional Use Permits for all new on- and off-site sales establishments (except for off-site alcoholic beverage sales establishments with an least 10,000 square feet of gross floor area with ten (10) percent or less sales area of alcoholic beverages) and provide a process for issuance and/or revocations of Conditional Use Permits for sales establishments. Ordinance No. 1493 Page 2 G. That on March 13, 2018, a public hearing was duly noticed, called, and held on Code Amendment 2017-003 and the Alcoholic Beverage Sales Establishment Guidelines by the Planning Commission. H. That on March 13, 2018, the Planning Commission adopted Resolution No. 4360, recommending that the City Council adopt Ordinance No. 1493, approving Code Amendment 2017-003 relating to alcoholic beverage sales establishments and adopting new Alcoholic Beverage Sales Establishment Guidelines, to become effective contingent upon the City Council's approval of Code Amendment 2017-003. That on April 17, 2018, a public hearing was duly noticed, called, and held on Code Amendment 2017-003 by the City Council. The City Council directed staff to revise the ordinance to retain existing distance separation requirements for off-site alcoholic beverage sales establishments. J. That on July 17, 2018, a public hearing was duly called and held on Code Amendment 2017-003 by the City Council K. That the proposed code amendment is consistent with the Tustin General Plan in that they comply with the following goals and policies: Land Use Element Policy 1.2 to provide for and encourage the development of neighborhood -serving commercial uses in the area of Tustin presently underserved by such uses. Land Use Element Goal 4 to assure a safe, healthy and aesthetically pleasing community for residents and businesses. . Land Use Element Goal 7 to promote expansion of the City's economic base and diversification of economic activity. L. That the proposed code amendment is exempt from environmental review pursuant to California Environmental Quality Act (CEQA) pursuant to California Code of Regulations, Title 14, Chapter 3, Section 15060 (c) (2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment. Section 2. Section 9232a1.(a) of Part 3 of Chapter 2 of Article 9 of the Tustin City Code is hereby amended to read as follows (new text underlined; deleted text in strikeout): Alcoholic beverage sales (off-site) located within a building and permitted business with at least 15,000 10,000 square feet of gross floor area and where the alcoholic beverage sales area within the building occupies no more than 10 percent of the gross floor area. Ordinance No. 1493 Page 3 Section 3. Section 9241 a1. of Part 4 of Chapter 2 of Article 9 of the Tustin City Code is hereby amended to read as follows (new text underlined; deleted text in strikeout): Alcoholic beverage sales (off-site) located within a building and permitted business with at least 15,000 10,000 square feet of gross floor area and where the alcoholic beverage sales area within the building occupies no more than 10 percent of the gross floor area. Section 4. Section 9252j3.(c) of Part 5 of Chapter 2 of Article 9 of the Tustin City Code is hereby amended to read as follows (new text underlined; deleted text in strikeout) Pipe and tobacco shops .,, .. .. Lamp shops Wine tasting rooms/M-micro-winery and/or beer tasting rooms/micro- Yardage goods brewery (subject to distance 9 ro rrnromorits iri Section 9271 dd) Leather goods Knit shops .... �. n,.. Candle shops Ice cream shops Boutique Jewelry shops I Coffee shops Wrought iron ware s Ethnic restaurants Art galleries General offices (Spanish, Mexican, (if located on any floor above and if French, German) less than 50 percent of total area are occupied b general offices, consistent p Y9 E ,.�.... ... _..._ with Section 9233a(1)(g) _....:. �...I Hobby shops Delicatessens Photographer's studios Antique shops China and crystal � Gift shops Section 5. Section 9271 dd of Part 7 of Chapter 2 of Article 9 of the Tustin City Code is hereby amended to read as follows (new text underlined; deleted text in strikeout): Alcoholic beverage sales establishments Ordinance No. 1493 Page 4 Subject to the Planning Commission's Alcoholic Beverage Sales Establishments Guidelines and the following Griteria standards: Qff - - 19 ted in a b,uilding and pe,Frnittedbusiness••• square feet of gross fleor area, and permitted bu i 'th more than 15,000 6quaFe feet of gress flear area wheFe the off site as!Geheli beveFage sales area within the -bui-ld,ing ec E? than 10 percent o •• 0• feet ftern any other existing eff site sales establishment; and _•• et any plac;e of worship, publiG or pFivate school, park, pi '-1, 4nic-, hospital, health oare facility or oenvales6ent hom ; ;-;..d -•• feet- Minimumany existing en site sales establishments, except FestauFan Minimumresidentially zoned er used pFoperty, places of woFsNp, publiG oF pr the closest entry/exit provided for puibliGIGUstomer aGGess of the off site sales establoshment to_ the prepeerly line of any of the above usee, (whether inside or outside the City boundarie-s), off site or on site sales establoshment, eX-Gept fOF restau establishments, (whetheF inside or outside the Gity boundaFies) shall be StFUGtLiral walls of each use. (d) SpeGialty stores as defineed On Section 9297 of the Tustin City Cod -e •M• •�� _, Ordinance No. 1493 Page 5 Minimum dio neo between on_si a sales establishments and another {�---Iitt�lAi-tccsv-ccvvc �r-vrr�rt�atrrc.�-�-�'caurr.»-rrrrcrr�-urra--ccr rvcrr off site nr on - site —sates--establio hmen+,eXGept for res�to ranR+ establishments(whet noide er outside the Gity boundaries) shall he StF Gt gyral walls of each use. (1) Except as otherwise provided, no establishment may sell alcoholic beverages for either on- or off-site consumption unless a Conditional Use Permit has been approved by the Zoning Administrator for such establishment. (2) All establishments selling alcoholic beverages shall comply with the Alcoholic Beverages Sales Establishments Guidelines adopted by Planning Commission Resolution. The Zoning Administrator may waive, modify, or impose additional conditions of approval deemed necessary and appropriate provided that the waiver, modification and/or additional conditions achieve the purpose, intent. and findinas provided in the Guidelines. (3) The establishment hours of operation may extend until 2:00 a.m. daily unless otherwise restricted by the City of Tustin and/or California Department of Alcoholic Beverage Control. (4) On-site Sales Establishments shall offer food service at all times. Food service options shall include foods that are prepared on-site, prepackaged foods, and/or provided pursuant to an agreement with food vendors. (5) Off-site - located in a building and permitted business with less than 10,000 square feet of gross floor area, and permitted businesses with more than 10,000 square feet of gross floor area where the off-site alcoholic beverage sales area within the building occupies more than 10 percent of the gross floor area, subject to the following criteria: (a) A minimum distance separation of 1,000 feet from any public or private school. (b) Minimum distances between off-site sales establishments and public or private schools shall be computed by measuring the distance from the closest entry/exit provided for public/customer access of the off-site sales establishment to the property line of the public or private school (whether inside or outside the City boundaries). (c) The gross annual sales of alcohol shall not exceed 50 percent of all sales within the establishment. Ordinance No. 1493 Page 6 (d) Specialty stores as defined in Section 9297 of the Tustin City Code shall be exempt from minimum distance regulations. (6) Any Conditional Use Permit granted in accordance with this Section may be revoked by the Planning Commission in the manner herein set forth if the establishment creates undue burden on the surrounding area, the Tustin Police Department, Code Enforcement and if any of the conditions of approval are violated. (7) An establishment shall be considered to have created an undue burden to the surrounding area and/or City resources if any of the following occur: a. Issuance of three (3) Notices of Violation or Citations within a twelve (12) month period either from the Community Development Department, Police Department, and/or Fire Marshall; b. The imposition of disciplinary action or finding of violation by the Department of Alcoholic Beverage Control; c. Six (6) documented instances within a twelve (12) month period of activities detrimental to the public health, safety, and/or welfare of persons residing, visiting, or working in the neighborhood or incurious to the property or improvement in the area; and/or d. Any critical incident occurring on or in the premises or in connection with the operation on the premises, as determined by the Community Development Director in consultation with the Police Department. (8) Upon the determination that the establishment has caused an undue burden, upon violation of any provision of this Section, or upon failure to comply with the conditions of approval, or in the event that the Conditional Use Permit is abandoned for a twelve (12) month period, the Community Development Director shall issue a Notice of Intent to revoke such permit. The Notice of Intent to revoke such permit shall be provided to the property owner and business owner at least ten (10) days prior to a Revocation public hearing. The Notice of Intent shall state why the approved Conditional Use Permit should be revoked and provide the grounds upon which it is proposed to revoke the Conditional Use Permit for the approved establishment. (9) The Planning Commission shall hold a public hearing prior to revocation of the Conditional Use Permit. The Planning Commission may revoke the Conditional Use Permit issued under the provisions of this Section for any of the following reasons: Ordinance No. 1493 Page 7 a. Where the Planning Commission has found and determined that the preservation of the public health, safety, and welfare demand revocation or suspension of the permit; b. Where the establishment has violated any provisions of the Tustin City Code, or Statutes of the State of California, or of the United States of America: c. Where Conditional Use Permit granted in accordance with this Section, is transferred to a new applicant and the new applicant fails to sign and return an "Agreement to Conditions Imposed" form provided by the Community Development Department which states that the property owner, applicant, operator, and/or tenant agrees to comply with all conditions imposed by the City of Tustin. d. Where a Conditional Use Permit has been issued in reliance on false statements in the application: e. Where the establishment has violated any of the terms and conditions of approval of the Conditional Use Permit: f. Where the establishment has caused undue burden on the surrounding area, the Police Department, Code Enforcement, and any other City resources: and/or g. Where the use or activity for which the Conditional Use Permit was granted has ceased or has been suspended for one (1) year or more. (10) A decision of the Planning Commission at the conclusion of the Revocation hearing shall be final. Section 6. Section 9299b(3)(g) of Part 9 of Chapter 2 of Article 9 of the Tustin City Code is hereby amended to read as follows (new text underlined; deleted text in strikeout): np-site-aAlcoholic beverage sales establishments licenseforFestaaraprrs. Section 7. If any section, subsection, sentence, clause, phrase, or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Tustin hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase, or portion thereof irrespective of the fact that any one or more sections, Ordinance No. 1493 Page 8 subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. PASSED AND ADOPTED, at a regular meeting of the City Council of the City of Tustin on this 4th day of September, 2018. ELWYN A. MURRAY, Mayor ATTEST: ERICA N. YASUDA, City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF TUSTIN ) CERTIFICATION FOR ORDINANCE NO. 1493 I, Erica N. Yasuda, City Clerk and ex -officio Clerk of the City Council of the City of Tustin, California, does hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Ordinance No. 1493 was duly and regularly introduced and read by title only at the regular meeting of the City Council held on the 17th day of July, 2018, and was given its second reading, passed and adopted at a regular meeting of the City Council held on the 4th day of September, 2018, by the following vote: COUNCILPERSONS AYES: COUNCILPERSONS NOES: COUNCILPERSONS ABSTAINED: COUNCILPERSONS ABSENT: Erica N. Yasuda, City Clerk