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HomeMy WebLinkAboutRES 13-6837 (CUP-ON-SALE GENERAL ALCOHOL AND LIVE ENTERTAINMENT)1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 13-6837 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, TO SUSTAIN THE PLANNING COMMISSION ACTION MODIFYING A CONDITIONAL USE PERMIT TO ALLOW ON - SALE GENERAL ALCOHOL AND LIVE ENTERTAINMENT, IN CONJUNCTION WITH AN EXISTING RESTAURANT ("CAFE BOOGALOO"), AND SUPERSEDING P.C. RESOLUTION 12-22, AT 1238 HERMOSA AVENUE, LEGALLY DESCRIBED AS LOT 5, BLOCK 34, FIRST ADDITION TO HERMOSA BEACH, HERMOSA BEACH, CALIFORNIA THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Recitals. 1. The Planning Commission on December 5, 2012 conducted a duly noticed public hearing pursuant to Section 17.70.010 of the Hermosa Beach Municipal Code to consider the revocation or modification of the Conditional Use Permit (CUP) governing the business at 1238 Hermosa Avenue approved May 16, 1995 (P.C. Resolution 95-16), which allows on -sale general alcohol, outdoor dining and live entertainment in conjunction with an existing restaurant. Based on evidence received at the public hearing, the Planning Commission adopted Resolution 12-22 on January 15, 2013 modifying the Conditional Use Permit and reducing hours of operation from 2:00 a.m. daily to 12:00 midnight daily and reducing hours for live entertainment from 1: 15 a.m. to 11:30 p.m. daily, as well as incorporating ABC license requirements to affix certain furniture to the floor to reduce the potential to convert the space to a nightclub, requirements to ensure restaurant use is the primary function including reporting of alcohol/food sales ratios, and installation of security cameras in the parking lot, among others. The modification also legalized changes to the floor plan that had been made by the operator and eliminated the allowance for outdoor dining, which had never been implemented and would be inconsistent with the modified floor plan. 2. Pursuant to Hermosa Beach Municipal Code Section 2.52.040, on January 22, 2013 the City Council took jurisdiction of the Planning Commission's decision to modify a Conditional Use Permit as per Resolution 12-22 with regard to 1238 Hermosa Avenue. Page 1 of 12 13-6837 1 2 3 4 5 6 7 s 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3. On March 12, 2013, the City Council held a duly noticed public hearing to consider the modification of the Conditional Use Permit at which time testimony and evidence, both oral and written, was presented to and considered by the Council. SECTION 2. Based on the Staff Report, testimony, the record of the decision of the Planning Commission, and evidence received, both oral and written, the City Council makes the following findings: 1. The use for which the Conditional Use Permit was originally granted has been exercised so as to be detrimental to the public health and safety. The Police Department has identified a pattern of serious incidents and behavior over the past year in violation of Condition 2 of Section II of Planning Commission Resolution 95-16, reflecting lack of security and poor management, even with use of additional security personnel and protocols, thereby posing a risk to public safety, adverse effects to the surrounding area, and impacts to police services and public safety by requiring a disproportionate share of the law enforcement resources and reducing those available for the city as a whole. Of the nine serious incidents provided in the December 5, 2012 Planning Commission staff report determined by the Police Chief to be related to the conduct of business at the subject location, including battery, assault with a deadly weapon, unlawful possession of a controlled substance, and public intoxication, all occurred between 12:00 midnight and 2:30 a.m. Subsequent to the modification hearing, the Hermosa Beach Police Department reports that on February 10, 2013 officers responded to Caf6 Boogaloo on the report of underage females inside the bar. The females were contacted and one did not have identification, but got inside even though there was a doorman. The other presented a California identification card, however the picture did not resemble her. The female finally acknowledged it was a friend's ID card and not hers. The 20-year-old female was cited for providing a false identification to officers and false information to officers. No employees of the bar were cited. Page 2 of 12 13-6837 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 The Hermosa Beach Police Department also reports that "LA Impact" (Los Angeles Intra- Agency Metropolitan Police Apprehension Crime Task Force) and ABC investigators conducted an undercover investigation involving bars that they received information were selling narcotics. During this investigation that went from February 2012 to October 2012, employees at Caf6 Boogaloo sold narcotics and marijuana to undercover investigators. It was also determined during this investigation that the investigators were never told to leave the bar after asking for drugs and they were told that when the dealer showed up the employee would point him out. When the owners were advised of the results of the investigation they advised the investigators those employees were no longer employed at Boogaloo. Caf6 Boogaloo has tentatively agreed to a 20- day suspension of their liquor license and three years' probation based on narcotics sales tied to employees of their business. The provision of live entertainment and alcohol sales, in combination with late -night hours, creates a focus on nightclub activity rather than restaurant use, resulting in intoxication,' unruly behavior, and safety issues within and in the immediate vicinity of the establishment. Such activity has the potential to exacerbate negative impacts experienced in the downtown area (which exhibits a high concentration of alcohol serving establishments as evidenced by the adoption of regulations in H.B.M.C. Section 17.40.080 to cap and reduce the intensification of late night alcohol serving establishments), and this activity further impacts law enforcement services by requiring a disproportionate share of the law enforcement resources available for the city as a whole. The abundance of televisions adds to a sports bar atmosphere with a focus on alcohol rather than food consumption, which can result in noise, over -serving, intoxication, unruly behavior, and management problems. 2. The Conditional Use Permit is being exercised contrary to the terms of the conditions of approval and in violation of the regulations imposed by the Department of Alcoholic Beverage Control ("ABC") pursuant to its Type 47 license. The establishment is not operating as a restaurant as defined by H.B.M.C. Section 17.04.030, which requires that a minimum of fifty Page 3 of 12 13-6837 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (50) percent of the total gross sales, computed monthly, shall result from the sale of prepared food. The City's consultant retained to audit food and alcohol sales prepared an assessment based on the unaudited profit and loss summary provided by the business owner, which shows that food sales only comprised between 37% and 42% of the total sales each month between January 2011 and October 2012. On March 4, 2013 the consultant provided his final audited report indicating alcohol sales exceeded 60% for many of the months in 2011 and 2012; average annualized food to alcohol sales ratio percentages were 55/45 in 2010, 59/41 in 2011, and 61/39 in 2012 (January -October), indicating an upward trend of increasing alcohol sales as opposed to focus on restaurant use. The approved floor plan in the CUP has not been implemented, meaning that the business is not operating in compliance with the floor plan approved for the establishment as required in the conditions of approval. Additionally, the operation is not in compliance with the Department of Alcohol and Beverage Control (ABC) license condition requiring fixed tables. The approved floor plan in the CUP with a bar counter in the center of the room and ABC license condition to maintain this central table and several tables in front of the stage in fixed positions serve an important purpose, as these conditions reduce the ability for people to congregate in front of the stage or to establish an expansive dance area. Alteration of the approved floor plans can contribute to a nightclub, rather than a restaurant, atmosphere. The outdoor dining element of the CUP was not implemented within the two years and has expired by operation of law per H.B.M.C. Section 17.70.020. Thus, it should be eliminated from the CUP (although certain outdoor dining activities may still be permitted under the H.B.M.C., subject to the Code's terms and conditions). The area designated for onsite parking accommodating two spaces on the 1995 site plan located adjacent to the rear door has been used for storage of miscellaneous items rather than being maintained for parking without approval of a Page 4 of 12 13-6837 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 parking reduction. Failure to comply with conditions of approval also demonstrates an emphasis on bar or nightclub activity and poor management. 3. The conditions of approval are found to be inadequate to mitigate the impacts of the uses allowed by the permit, and the public health, safety and welfare merit modification of the permit. The combination of operational issues identified above, combined with late -night hours and live entertainment, have created an emphasis on bar or nightclub activity rather than restaurant use and the impacts identified above. The operation is not properly conditioned to accommodate nightclub activity. Modified conditions to reduce identified impacts and security concerns and focus the business on a safe restaurant use with alcohol and live entertainment as incidental uses, rather than on bar or nightclub use, have been identified, including a reduction of hours, and are incorporated into this modified CUP. SECTION 3. Based on the foregoing, and pursuant to Section 17.70.010 of the H.B.M.C., the City Council hereby modifies the Conditional Use Permit for on -sale general alcohol and live entertainment and eliminates outdoor dining from the CUP in conjunction with a restaurant for the property at 1238 Hermosa Avenue, which supersedes P.C. Resolution 95-16 as follows: 1. The development and continued use of the property, both interior and exterior, shall be in conformance with plans reviewed by the City Council on March 12, 2013. Other than trivial or insignificant deviations in the placement or arrangement of furniture, no change shall be made to the interior of the premises that is inconsistent with the approved floor plan and under no circumstances shall furniture or other interior/exterior improvements be rearranged to accommodate dancing, expanded entertainment or greater occupancy, absent approval by the Planning Commission or City Council by way of modification of the Conditional Use Permit. 2. Architectural treatments shall be as shown on building elevations of submitted plans and any modification shall require approval by the Community Development Director. Any roof -top equipment shall be integrated into the architecture and be hidden from street view. 3. The continued operation of the business shall be as a bona fide restaurant; the kitchen shall be equipped to prepare food from its component ingredients whenever the restaurant Page 5 of 12 13-6837 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 is open and it shall offer a full -service lunch and/or dinner menu; and food service from the menu shall be available during all hours that the establishment is open for business. 4. A minimum of fifty (50) percent of the total gross sales, computed monthly, shall result from the sale of prepared food. The permittee shall maintain a summary of gross receipts of food and alcohol indicating the percentage of each to the total on a monthly basis. The permittee shall submit said summaries to the Police Chief on a quarterly basis. The Police Chief reserves the right to request additional verification as needed to verify compliance with this Conditional Use Permit. Failure to provide said quarterly reports on a regular basis may result in a request by the City to the California Department of Alcoholic Beverage Control (ABC) to investigate the subject business's compliance with the alcohol license conditions. 5. Hours of operation shall be limited to 8:00 a.m. to 12:00 midnight daily. All alcohol sales, service and consumption shall cease and all customers shall vacate the premises no later than the stated time of closing and the entrance doors shall then be locked. Staff may remain onsite after the business is closed to the public for the purposes of cleaning, site maintenance and securing the premises only. 6. To allow for an adequate monitoring period, no extension of operating hours shall be considered or permitted for at least one year from the date of this Resolution. 7. The hours for live entertainment shall be limited to 4:00 p.m. to 11:30 p.m. on Monday through Friday, and from 9:00 a.m. to 11:30 p.m. on Saturdays, Sundays, Federal and State holidays, Cinco de Mayo, and St. Patrick's Day. 8. Live entertainment shall be incidental to food service, and the types of live entertainment permitted shall be consistent with the definition thereof in Section 17.04.050 of the H.B.M.C. and may include live music, amplified (including disc jockeys) or non -amplified and similar live performances such as stand-up comedy, and/or live theater on a regular basis. Live entertainment shall be "incidental" in the sense that it serves to entertain customers who are in the premises for the purpose of dining. Page 6 of 12 13-6837 1 2 3 4 5 6 7 s 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 9. Management shall be responsible for the music/entertainment volume levels. During the performance of amplified live entertainment, the exterior doors and windows shall remain closed. 10. The building shall be equipped with acoustic features to maximize soundproofing, which shall include the use of double -pane windows or an equivalent, and the installation of air conditioning so that windows and doors can remain closed during performances. Any additional acoustic treatment shall be provided in the interior if necessary to comply with the City's Noise Control Ordinance in Chapter 8.24. 11. Noise emanating from the property shall be within the limitations in the City's Noise Control Ordinance in H.B.M.C. Chapter 8.24 and shall not create a nuisance to surrounding residential neighborhoods and/or commercial districts. Noise emanating from the property shall be monitored to verify compliance with the Noise Control Ordinance in response to any complaints. 12. Alcohol may be provided for on -premise consumption only and in a manner consistent with the license issued by the ABC. 13. Drink minimums of any kind shall not be imposed at any time. Entry to the establishment shall not be limited to persons 21 years of age or older. 14. The permittee shall not solicit, advertise, or otherwise encourage the use of its premises for "pub crawl" activities where persons travel in an organized or predetermined fashion among premises with the goal of consuming alcoholic beverages at each stop along the way. 15. The establishment shall display no more than four (4) televisions, monitors, projections or similar devices. 16. The business shall employ adequate staffing and management/supervision to prevent serving underage persons and over -serving alcohol and to prevent loitering, unruliness and boisterous behavior by patrons both inside and outside on the business premises or in the immediate area. A manager shall remain on the premises daily until at least fifteen (15) minutes after the business closes. All staff serving alcoholic beverages or monitoring patrons shall Page 7 of 12 13-6837 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 complete the Licensee Education on Alcohol and Drugs Training (LEAD) or an equivalent staff training program offered by the California Department of Alcoholic Beverage Control. 17. If the Police Chief determines that there are a disproportionate number of police I calls to the business due to the disorderly or disruptive behavior of patrons and the inability or refusal of the business to manage its patrons, the Chief shall notify the Community Development Director of these actions, who shall forthwith schedule a public hearing before the Planning Commission to consider modification or revocation of this Conditional Use Permit. 18. The privilege granted to the permittee to serve alcohol for on -premises consumption and to offer live entertainment may be suspended pursuant to the provisions of this condition and the Hermosa Beach Municipal Code, as it exists today or may in the future be amended. The business may be subject to the suspension provisions below, in the event that the business is found by the City Manager, Fire Chief, or Police Chief to be in violation of any of the following: a. Conditions of this Conditional Use Permit; b. Conditions of the California Department of Alcoholic Beverage Control license; c. Police calls and/or public disturbances that are found to be increasing and in the opinion of the Police Chief constitute serious offenses or pose a risk to public safety or health; or d. The maximum posted Occupant Load. Should one violation occur, the City Manager may order the premises closed and all business operations suspended for three days, two of which shall fall on a Friday and Saturday. If a second violation should occur, the City Manager may order the premises closed and all business operations suspended for three days, two of which shall fall on a Friday and Saturday, and the matter may be set for a public hearing before the Planning Commission to consider modification or revocation of this Conditional Use Permit. The permittee shall be notified of the suspension in writing. The actual date of the suspension and whether a violation has occurred shall be determined by the City Manager. Page 8 of 12 13-6837 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 The permittee may appeal the suspension by filing a written notice of appeal with the City Clerk within ten calendar days of receipt of the notice of suspension. Filing a written notice of appeal shall stay the notice of suspension while the appeal is pending. The appeal shall be heard by the City Council at its next regular meeting, subject to agenda posting requirements. The City Council shall hear testimony and consider evidence regarding the factual circumstances of the violation and shall uphold the suspension if the evidence supports the existence of the violation. The City Council's decision shall be final. 19. The business owner shall reapply for an updated Occupant Load calculation. The Fire Department shall maintain a record of the posted allowable Occupant Load for the business and regularly check the business for Occupant Load compliance. The Occupant Load shall not exceed the amount permitted as prescribed by the California Building Code, based on the approved floor plan shown which has been reviewed and approved by the Department of Community Development and the Fire Department. An approved Occupant Load sign shall be posted in the business as directed by the Fire Department. 20. The business owner shall install and/or maintain security lighting (shielded with illumination maintained in the subject property so that it does not affect neighboring uses) and security cameras on the exterior of the building in the parking area, to the satisfaction of the Police Chief and the Community Development Director. 21. The establishment shall not adversely affect the welfare of the residents, and/or commercial establishments nearby. 22. The business shall prevent loitering, unruliness and boisterous activities of the patrons outside the business or in the immediate area. 23. The exterior of the premises shall be maintained in a neat and clean manner, and maintained free of graffiti at all times. 24. Runoff from washing and/or rinsing of restaurant equipment, including floor mats, food preparation utensils and other coverings, shall drain to the sewer system only; under no Page 9 of 12 13-6837 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 circumstances shall site run-off drain to the stormwater system. All operations shall comply with Chapters 8.44 and 8.56 of the H.B.M.C. 25. Two parking spaces shall be provided and utilized in the parking lot adjacent to the rear door. This area shall not be used for storage other than approved solid waste enclosures. 26. The business shall participate in the City's downtown parking validation program, providing validations for parking in public lots for no less than two hours. 27. The project shall comply with all requirements of the City and the Municipal Code. 28. The operation of the business shall comply with all ordinances, regulations and laws applicable to a business of this kind in effect as of the date hereof or hereafter adopted. In addition to any other remedy available at law, in equity or as provided in the Municipal Code: (i) any significant or material violation, or (ii) any repeated, continuous or sustained violation of any condition of approval of this Conditional Use Permit shall constitute cause for revocation of this Permit. The permittee shall be required to reimburse the City fully for its costs and expenses, including but not limited to attorneys' fees, in undertaking any such corrective action. Reimbursement of enforcement costs shall constitute a civil debt and may be collected by any means permitted by law. In the event that violations of this Permit occur, any illegal condition existing on the property shall be remedied before an application for a permit, license, contract or other entitlement provided for in the Code (other than permits necessary to cure the illegal condition) shall be accepted as complete or processed in connection with the property pursuant to H.B.M.C. Section 2.84.010. 29. This Conditional Use Permit shall supersede and replace all Conditional Use Permits previously approved for the property, and Planning Commission Resolution 95-16 is hereby rescinded and is of no further force and effect. Due to failure to commence the activity within the time permitted in Resolution 95-16, the allowance for outdoor dining pursuant to Resolution 95-16 is null and void, except as otherwise allowed by the H.B.M.C. as a permitted use without the need for a Conditional Use Permit. Page 10 of 12 13-6837 1 2 3 4 s 6 7 s 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2s 26 27 28 30. This Conditional Use Permit for a restaurant with on -sale alcohol and live entertainment shall be reviewed by the Planning Commission six months after the adoption of this Resolution and shall be subject to review by the Planning Commission as part of the City's review of on -sale establishments. 31. If a review of this Conditional Use Permit occurs, the Planning Commission may amend the above conditions and/or impose any new conditions deemed necessary to mitigate detrimental impacts on the environment or neighborhood arising from use of the premises. SECTION 4. This grant shall not be effective for any purposes until the permittee and the owners of the property involved have filed at the office of the Planning Division of the Community Development Department their affidavits stating that they are aware of, and agree to accept, all of the conditions of this grant. The Conditional Use Permit shall be recorded, and proof of recordation shall be submitted to the Community Development Department. Each of the above conditions is separately enforced, and if one of the conditions of approval is found to be invalid by a court of law, all the other conditions shall remain valid and enforceable. The permittee shall defend, indemnify and hold harmless the City, it agents, officers, and employees from any claim, action, or proceeding against the City or its agents, officers, or employees to attack, set aside, void or annul this permit approval, which action is brought within the applicable time period of the State Government Code. The City shall promptly notify the permittee of any claim, action, or proceeding and the City shall cooperate fully in the defense. If the City fails to promptly notify the permittee of any claim, action or proceeding, or if the City fails to cooperate fully in the defense, the permittee shall not thereafter be responsible to defend, indemnify, or hold harmless the City. The permittee shall reimburse the City for any court and attorneys' fees which the City may be required to pay as a result of any claim or action brought against the City because of this grant. Although the permittee is the real party in interest in an action, the City may, at its sole Page 11 of 12 13-6837 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24_ 25 26 27 28 discretion, participate at its own expense in the defense of the action, but such participation shall not relieve the permittee of any obligation under this condition. The subject property shall be developed, maintained and operated in full compliance with the conditions of this grant and any law, statute, ordinance or other regulation applicable to any development or activity on the subject property. Failure of the permittee to cease any development or activity not in full compliance shall be a violation of these conditions. SECTION 5. Pursuant to the Code of Civil Procedure Section 1094.6, any legal challenge to the decision of the City Council must be made within 90 days after the final decision by the City Council. SECTION 6. The City Clerk shall certify to the passage and adoption of this Resolution; shall cause the original of the same to be entered among the original Resolutions of the City Council; and shall make a minute of the passage and adoption thereof in the minutes of the City Council meeting at which the same is passed and adopted. PASSED, APPROVED, and ADOPTED this 12`h day of March 2013. ATTEST: City Clerk of the City I and MAYOR of the City of Hermosa Beach, California APPROVED AS TO FORM: City Attorney Page 12 of 12 13-6837 STATE OF CALIFORNIA COUNTY OF LOS ANGELES CITY OF HERMOSA BEACH I, Elaine Doerfling, City Clerk of the City of Hermosa Beach, California, do hereby certify that the foregoing Resolution No. 13-6837 was duly and regularly passed, approved and adopted by the City Council of the City of Hermosa Beach at a Regular Meeting of said Council at the regular place thereof on March 12, 2013. The vote was as follows: AYES: DiVirgilio, Duclos, Fishman, Tucker, Mayor Bobko NOES: None ABSTAIN: None ABSENT: None Dated: March 12, 2013 n Elaine Doerfling, City Cl k