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RES-10914 Alcoholic Beverage Type 47 ApprovalRESOLUTION NO. 10914 A RESOLUTION OF THE CITY COUNCIL APPROVING CONDITIONAL USE PERMIT NO. 2985 -15 TO ALLOW AN ALCOHOLIC BEVERAGE TYPE 47 (ON -SALE GENERAL FOR A BONA FIDE PUBLIC EATING PLACE) LICENSE FOR A RESTAURANT WITH OUTDOOR DINING AREA ON PROPERTY LOCATED AT 116 -120 EAST CHAPMAN AVENUE APPLICANT: OUR FAMILY RESTAURANT GROUP, LLC WHEREAS, Conditional Use Permit No. 2985 -15 was filed in accordance with the provisions of the City of Orange Municipal Code; and WHEREAS, Conditional Use Permit 2985 -15 was processed in the time and manner prescribed by state and local law; and WHEREAS, the Planning Commission conducted one duly advertised public hearing on October 5, 2015, and adopted Planning Commission Resolution No. PC 32 -15 on October 19, 2015, approving Conditional Use Permit 2985 -15; and WHEREAS, Appeal No. 543 -15 was filed in accordance with the provisions of the City of Orange Municipal Code; and WHEREAS, Appeal No. 543 -15 was processed in the time and manner prescribed by state and local law; and WHEREAS, the City Council of the City of Orange conducted a duly advertised public hearing on December 8, 2015, for the purpose of considering Appeal No. 543 -15 and Conditional Use Permit No. 2985 -15 for an upgrade to the existing ABC license upon property located at 116 -120 East Chapman Avenue described as follows: THE EAST ONE -HALF (1/2) OF LOTS 1 AND 2 OF BLOCK F OF "TOWN OF ORANGE" AS SHOWN ON A MAP RECORDED IN BOOK 2, PAGE 630 AND 631 OF MISCELLANEOUS RECORDS OF ORANGE COUNTY, CALIFORNIA NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Orange hereby approves Conditional Use Permit No. 2985 -15 to allow an alcoholic beverage Type 47 on -sale general for a bona fide public eating place) license, based on the following findings: SECTION 1— FINDINGS General Plan Finding: 1. The project must be consistent with the goals and policies stated within the City's General Plan. The project is consistent with the goals and policies in the City's General Plan in that a restaurant offering beer, wine and distilled spirits for consumption with food service encourages the creation of a successful mixed -use district in the Plaza Historic District. According to the General Plan Land Use Element, one goal is to "maintain and enhance the vibrant, transit - accessible, pedestrian - friendly, and livable character of Old Towne's neighborhoods and commercial core." Authorizing alcohol service for a restaurant may help to retain the restaurant, thereby maintaining activity in the Plaza and demonstrating economic vitality in the area. The availability of beer, wine, and distilled spirits with food service in a restaurant is a service typically expected by the public and is unlikely to have an adverse impact on the surrounding community with the conditions of approval placed on the service of alcohol. Conditional Use Permit Finding 1. A Conditional Use Permit shall be granted upon sound principles of land use and in response to services required by the community. The granting of this Conditional Use Permit is based upon sound principles of land use and in response to services required by the community. Consideration has been given as to whether the proposed use will detrimentally affect adjacent land uses. The proposed use provides an opportunity to residents desiring to purchase alcohol in association with food service at a restaurant. The use will occur on a site that has been zoned for a mix of uses, and the subject property is adjacent to similar uses in the Plaza Historic District, a commercial destination that serves City residents as well as visitors. The sale of beer, wine, and distilled spirits is considered accessory to the restaurant, and alcohol service will occur only when a complete restaurant menu is available. This is a service typically expected by the public in association with a restaurant, and upgrading the license from the existing Type 41 to the Type 47 will maintain the competitiveness of the business in a commercial area with other restaurants serving alcohol. Strong consideration was given to the manner in which the business will operate under the provisions of this Conditional Use Permit. As conditioned, its operation should not create a nuisance to the community or an undue burden on police services. Consideration was given to the crime rate in the Reporting District, and conditions have been placed on the project to compensate for potential detrimental effects that could be caused by a restaurant serving alcoholic beverages. As conditioned, alcohol service is not anticipated to increase or contribute to the crime rate in the Reporting District. Reso. No. 10914 2 WWW 2. A Conditional Use Permit shall not be granted if it will cause deterioration of bordering land uses or create special problems for the area in which it is located. The proposal to offer beer, wine and distilled spirits is not anticipated to have an adverse impact on surrounding land uses or create a special problem, because the site is located in an area that is intended to function as a shopping and dining destination for City residents and visitors. While the area is over - concentrated with alcohol licenses, upgrading the existing Type 41 license to a Type 47 license does not change the total concentration of on -sale licenses in the census tract. There are sensitive land uses within 600 feet of the site, but these properties do not have direct access to the subject property, and sales of alcohol would be accessory to food service. Although the proposal is in a high crime area, there are specific project features combined with project conditions that compensate for detrimental effects that could be caused by alcohol service. The conditions of approval should compensate for the high crime rate within the Reporting District and census tract as follows: Conditions require that alcohol service occur only when a complete restaurant menu is available, establish a food to alcoholic beverage sales ratio, prohibit alcoholic beverage promotions, address graffiti and litter removal, and require employee training. Potential undesired side effects of overconsumption of alcohol are not anticipated to occur at the subject restaurant where food service consumption is the primary function. 3. A Conditional Use Permit must be considered in relationship to its effect on the community or neighborhood plan for the area in which it is located. Although the location of the restaurant is not within an identified or specific community or neighborhood plan, it is within the Plaza, a recognized historic district and commercial center in the City. The proposal is not anticipated to have an adverse impact on the community because, upgrading an existing on -sale license is unlikely to significantly increase the reported crime rate in the area or to have an adverse effect on sensitive land uses in the immediate area. The restaurant is located in a mixed use area with a variety of restaurants, where alcohol service with meals is an anticipated use by the community and is key to maintaining the competitiveness of the business and economic vitality of the area. 4. A Conditional Use Permit, if granted, shall be made subject to those conditions necessary to preserve the general welfare, not the individual welfare of any particular applicant. Granting of the Conditional Use Permit for the subject property in conjunction with the conditions of approval would preserve the general welfare. The Orange Police Department's conditions of approval placed on the alcohol sales include a review of the operation and police records for excessive calls one year after the beginning of alcoholic beverages sales. If the Police Department finds that the restaurant is not operating as required, or if there is a history of criminal or nuisance behavior, the Department will recommend that the Planning Commission reconsider this application. Other conditions have been placed on the project to reduce crime - inducing activities by requiring food service with alcohol service at all times; establishing a food to alcoholic beverage sales ratio; prohibiting alcoholic beverage promotions; addressing graffiti and litter removal; and requiring employee training. It is not Reso. No. 10914 3 WWW anticipated to have a negative impact on the surrounding community due to the conditions of approval in effect which regulate the service of alcohol with meals. SECTION 2 — ENVIRONMENTAL REVIEW The proposed project is statutorily exempt from the provisions of the California Environmental Quality Act per State CEQA Guidelines 15301 (Class 1 — Existing Facilities), because the project consists of upgrading an existing license for alcohol sales to include distilled spirits at a restaurant. SECTION 3— CONDITIONS OF APPROVAL BE IT FURTHER RESOLVED that the following conditions are imposed with approval: 1. The hours of operation shall be Sunday - Thursday 6:00 a.m. until 12 a.m. (midnight) and Friday - Saturday 6:00 a.m. until 1:00 a.m. These hours do not restrict employees from being on the premises before opening for preparation and deliveries or after close for clean -up. Clean -up may not be conducted by patrons. 2. The restaurant shall not operate for 24 hours without closing without prior approval of a special event permit as described in Condition 36. 3. The project shall conform in substance and be maintained in general conformance with plans and exhibits (date stamped September 17, 2015), including any modifications required by conditions of approval, and as approved by the Planning Commission. 4. Any future expansion in area or in the nature and operation of the use approved by Conditional Use Permit No. 2985 -15 shall require an application for a new or amended Conditional Use Permit. 5. The applicant agrees to indemnify, hold harmless, and defend the City, its officers, agents and employees from any and all liability or claims that may be brought against the City arising out of its approval of this permits, save and except that caused by the City's active negligence. The City shall promptly notify the applicant of any such claim, action, or proceedings and shall cooperate fully in the defense. 6. The applicant shall comply with all federal, state, and local laws, including all City regulations. Violation of any of those laws in connection with the Conditional Use Permit will be cause for revocation of this permit. 7. Conditional Use Permit No. 2985 -15 shall become void if not vested within two years from the date of approval. Time extensions may be granted for up to one year, pursuant to OMC Section 17.08.060. 8. Except as otherwise provided herein, this project is approved as a precise plan, see exhibit A" attached. After any application has been approved, if changes are proposed regarding the location or alteration of any use or structure, a changed plan may be submitted to the Community Development Director for approval. If the Community Development Director determines that the proposed change complies with the provisions and the spirit and intent of the approval action, and that the action would have been the same for the changed plan as for Reso. No. 10914 4 WWW the approved plan, the Community Development Director may approve the changed plan without requiring a new public hearing. 9. Prior to the operation of the business the applicant shall file for or, if applicable, amend a business license with the Business License Division. Failure to obtain the required business license will be cause for revocation of this permit. 10. This CUP shall be reviewed one year from the date of approval and each year thereafter as necessary and at any time there is a change in ownership. The review shall be conducted jointly by the Community Development Director and Police Chief or designee. The purpose of this review shall be to identify uniquely adverse issues such as curfew, loitering, vandalism, criminal activity, noise, or nuisance resulting from approval of the CUP. If such issues are identified, the CUP shall be presented to the Planning Commission for their consideration of conditions, modifications, or revocation. 11. The activity level of the business shall be monitored by the Police Department to establish the level of police services used for the business. Should the level of police services demonstrate that the applicant has not controlled excessive, or unnecessary activity resulting in high use of police services then this CUP shall be reviewed for consideration of further conditions, modifications or revocation. 12. The quarterly gross sales of alcoholic beverages shall not exceed the gross sales of food and meals during the same time period. The licensee shall at all times maintain records which reflect separately the gross sales of food and the gross sales of alcoholic beverages of the licensed business. Records shall be kept no less frequently than on a quarterly basis and shall be made available on request. 13. The subject alcoholic beverage license shall not be exchanged for a public premises type license nor operated as a public premises. 14. The sale of any alcohol for consumption off the premises shall be prohibited. 15. Alcohol shall be consumed on the subject site only, within the defined dining areas. 16. Signs shall be posted on all exits of the premises, which prohibit alcoholic beverages from leaving the confines of the premises. 17. The premises shall be maintained as a bona fide restaurant and shall provide a menu containing an assortment of foods normally offered in such restaurants. 18. At no time shall there be a fee for entrance /admittance into the premises. 19. Employees and /or contract security personnel shall not consume any alcoholic beverages during their work shift. 20. At all times when the premises are open for business, the sale and service of alcoholic beverages shall be made only in conjunction with the sale of food. 21. Food service, with a complete menu, shall be available until closing time on each day of operation. 22. Alcoholic beverages shall be served by a waiter /waitress only, and only to seated patrons at permitted tables. Reso. No. 10914 5 www 23. Alcoholic beverages shall be sold and served in containers, which are distinguishable from other non - alcoholic beverages sold at the premises. 24. There shall be no bar or lounge area upon the licensed premises maintained for the purpose of the sale, service or consumption solely of alcoholic beverages directly to patrons for consumption. 25. There shall be no "Happy Hours" when alcoholic beverages are offered at a reduced rate. 26. There shall be no time when alcoholic beverages are sold at a ratio of two for one; no stacking" of beverages, which means the serving of two alcoholic beverages at one time to the same customer; and no sales to an "empty chair ", which means that each customer must be physically present at the time of the order of any alcoholic beverage. 27. There shall be no promotions encouraging intoxication or drinking contests. 28. There shall be no requirement to purchase a minimum number of drinks. 29. No alcoholic beverages shall be sold from any temporary locations on the premises such as ice tubs, barrels or any other containers. 30. The petitioner shall not employ or permit any persons to solicit or encourage others, directly or indirectly, to buy them drinks in the licensed premises under any commission percentage salary or other profit. 31. The outdoor dining area shall be enclosed and any gates located at the outdoor dining area shall remain closed during business hours. 32. Patrons in the outdoor dining area shall be seated by a host/hostess only, with no self - seating permitted. 33. An employee shall be stationed in the outdoor dining area at all times to monitor alcohol consumption. 34. No portion of the premises shall be deemed to be "private" for the purposes of dispensing alcoholic beverages to selected patrons, where the licensee recognizes any form of membership cards, keys or passes which would entitle the holder entry or preferential admittance or exclusive use of any portion of the mentioned premises. 35. There shall be no live entertainment (including karaoke), disc jockey, amplified music or dancing permitted on the premises at any time. Amplified music over a built -in system designed for background music shall be permitted provided that the music is not audible outside when the doors are open. 36. There shall be no special promotional events held on the property, unless a written request for such is received and approved by the City Manager, or his designee, the City of Orange Community Development Director and the Police Chief, or his designee, at least four weeks in advance of the event. 37. There shall be no pool tables or coin - operated games maintained upon the premises at any time. 38. The business owner shall install and maintain a closed circuit television system capable of readily identifying facial features, and stature of all patrons entering the establishment during Reso. No. 10914 6 W W W hours of operation and monitoring the rear of the premises. The camera system shall keep a minimum 30 day library of events, which shall be available for downloading and inspection by the Orange Police Department. 39. The use of any outdoor sound system is prohibited on the licensed premises. 40. The petitioner(s) shall be responsible for maintaining free of litter the area adjacent to the premises over which he /she has control. 41. There shall be no exterior advertising of any kind or type, including advertising directed to the exterior from within, promoting or indicating the availability of alcoholic beverages. Interior displays of alcoholic beverages that are clearly visible to the exterior shall constitute a violation of this condition. 42. Exterior doors and windows, as well as the interior of the business, shall be protected by an approved alarm system, which shall detect an attempted entry or the presence of people within the business during closed hours. 43. An interior night light shall be provided to illuminate the interior during closed hours, and the business shall maintain an unobstructed view through the storefront windows to provide police patrol officers the ability to observe unlawful activity within the business. 44. The owner or manager of the licensed premises shall maintain on the premises a written security policy and procedures manual addressing at a minimum the following items: Handling obviously intoxicated persons; establishing a reasonable ratio of employees to patrons, based upon activity level, in order to monitor beverage sales and patron behavior; handling patrons involved in fighting or arguing; handling loitering about the building and in the immediate adjacent area that is owned, leased, rented or used under agreement by the Licensee(s); verifying age /checking identification of patrons; warning patrons of reaching their drinking limit/potential intoxication and refusing to serve; calling the police regarding observed or reported criminal activity. 45. All employees of petitioner who sell or serve alcoholic beverage products shall be required to complete a training program in alcoholic beverage compliance, crime prevention techniques and the handling of violence. For new employees of petitioner, such training program must be completed within 30 days of the date of hire. The employees must provide the City of Orange Police Department, Vice Unit a copy of completed Alcohol Management Program (AMP) certificate. 46. Graffiti shall be removed from the exterior walls and windows of the premises within 72 hours of discovery. Reso. No. 10914 7 WWW ADOPTED this 8th day of December, 2015. 04`9(7,Ak- Teresa E. Smith, Mayor, City of Orange ATTEST: r Mary E. urphy, City Clerk, City of Orange I, MARY E. MURPHY, City Clerk of the City of Orange, California, do hereby certify that the foregoing Resolution was duly and regularly adopted by the City Council of the City of Orange at a regular meeting thereof held on the 8th day of December, 2015, by the following vote: MOTION: COUNCILMEMBER: Nichols SECOND: COUNCILMEMBER: Whitaker AYES: COUNCILMEMBER: Whitaker, Smith, Murphy, Nichols RECUSED (ABSENT): COUNCILMEMBER: Alvarez NOES: COUNCILMEMBER: None Mary E. urphy, City Clerk, City of Orange Reso. No. 10914 8 W W W