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AMENDMENT TO TITLE 16 OF THE STOCKTON MUNICIPAL CODE RELATED TO ALCOHOLIC BEVERAGE SALES (P15-227)
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RECOMMENDATION
Staff recommends that the Planning Commission forward a recommendation to the City Council to approve a comprehensive amendment to Title 16 of the Stockton Municipal Code (SMC), including Sections 16.20.020, Table 2-2, “Allowable Land Uses and Permit Requirements;” Section 16.80.040, “Alcoholic Beverage Sales;” Section 16.88.030, “Public Hearing Notices;” Section 16.108.030, “Revocation and Modification Procedure;” Section 16.168.050, “Findings and Decision;” and Section 16.240.020, “Definitions of Specialized Terms and Phrases,” related to alcoholic beverage sales.
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Summary
At the direction of the Planning Commission, staff prepared and recommends approval of a comprehensive amendment to the SMC for alcoholic beverage sales. The proposed amendment is a comprehensive update to the existing alcoholic beverage sales provisions in Title 16, which includes location restrictions, exemptions from location restrictions, permitting requirements, conditions of approval for on-sale and off-sale alcoholic beverage sales establishments, “deemed approved” status for alcoholic beverage sales, operational standards for deemed approved alcoholic beverage sales establishments, termination of deemed approved status, and investigative procedures for potential code violations for both new and existing alcohol-related sales uses.
DISCUSSION
Background
Planning staff have historically processed Planning Commission Use Permit applications for proposed liquor stores or other similar alcohol-related sales uses. The SMC does not contain specified metrics, or standards, by which to measure the appropriateness of proposed alcohol-related sales uses at specific project sites. Consequently, prior Planning Commissions based their decisions on interpretations of the best available information, rather than standardized criteria. In some of those cases, the applicants appealed the Planning Commission’s denial and the Use Permits were subsequently approved by the City Council. Therefore, at the direction of the Commission, staff has prepared and drafted a comprehensive Code Amendment to the SMC’s provisions related to alcoholic beverage sales.
The Planning Commission has held four meetings to discuss the proposed comprehensive update. During the meetings, Commissioners raised concerns and offered suggestions to staff regarding the new ordinance. Staff informed the Commission that the draft ordinance was prepared by Planning Division staff, based in part upon Commissioners’ suggestions and comments at previous meetings and in part upon a review of existing ordinances in other cities. Further, the draft ordinance was reviewed by staff from the City Attorney’s Office, Police Department, and Code Enforcement.
The last meeting was held on September 24, 2015. At that meeting, staff presented the draft ordinance to the Commission for its review and comments. Overall, the Commission expressed appreciation for the preparation of the draft alcohol ordinance and made comments regarding procedures for possible administrative hearings and text/language issues. . At the conclusion of the meeting, the Commission directed staff to prepare the final draft ordinance and return to the Planning Commission with a formal recommendation for a comprehensive amendment.
Project Description
Stockton Municipal Code
Currently, SMC Section 16.20.020, Table 2-2 (Allowable Land Use and Permit Requirements), allows the on-sale of alcoholic beverages with another use, such as restaurants and social clubs, subject to a Land Development Permit. Most off-sale alcoholic beverages establishments, bars, and nightclubs with the on-sale of alcoholic beverages are defined as a “Problem Use” (Section 16.080.040.B) and are subject to a Planning Commission-approved Use Permit. Current SMC regulations for alcoholic beverage sales are as follows:
• Separation Standards - A minimum 300-foot distance separation is required between public and private academic schools for students in kindergarten through 12th grade and a new off-sale alcoholic beverage establishment (Section 16.080.040.A);
• Exemption from minimum separation requirements and Commission Use Permit (CUP) - Grocery stores and large-scale commercial stores greater than 40,000 square feet in size are exempt from location restrictions and Commission Use Permit requirements (Sections 16.080.040.A and 16.240.020); and
• Definitions of the sale of alcoholic beverages, including Liquor Stores - Any retail establishment having more than 20 percent of its gross floor area devoted to the sale, storage, and/or display of alcohol. (Section 16.240.020).
Proposed Code Amendment
The proposed comprehensive amendment to Title 16 is the first comprehensive update of the SMC’s alcohol provisions since the Code’s adoption in 2004 (Attachment A - Ordinance (Redline Version). As currently drafted, the proposed amendment would revise noted code sections as follows:
Table 2-2, “Allowable Land Uses and Permit Requirements”
• Make full-service restaurants with the on-sale of alcoholic beverages a permitted, or by-right, use.
Section16.80.040, “Alcoholic Beverage Sales (on-sale and off-sale)”
• Increase the minimum separation between on-sale (bars or nightclubs) or off-sale alcoholic beverage establishments and schools (public or private, K through 12th grade) from 300 to 500 feet and add new sensitive uses to the separation list, including public parks, playgrounds, nursery schools, preschools, and day care facilities;
• Grant discretionary authority to the applicable Review Authority to waive the location restrictions to promote and support local business development;
• Create exemptions from location restrictions, including, but not limited to establishments containing 10,000 or more square feet of floor area with no more than 10% of their gross floor area devoted to the sale, display, and/or storage of alcohol; full service restaurants with the on-sale of alcoholic beverages; and membership clubs, social, veterans, or fraternal organizations with the on-site of alcoholic beverages as an incidental or secondary use;
• Establish automatic grounds for denial for new Commission Use Permits for new on- and off-sale alcoholic beverage sales establishments that are:
- located within a 500-foot radius of existing alcoholic beverage sales establishments;
- located within a 1,000-foot radius of a grouping of more than four existing alcoholic beverage sales establishments; or
- located in a Crime Reporting District with an average number of crimes that exceeds the average number of crimes in the citywide crime reporting districts by more than 20 percent.
• Create exemptions from the requirement for a Planning Commission Use Permit or a Land Development Permit, including, but not limited to, establishments containing 40,000 or more square feet of floor area with no more than 10% of their gross floor area devoted to the sale, display, and/or storage of alcohol and full-service restaurants with the on-sale of alcoholic beverages;
• Codify standard conditions of approval for new on-sale and off-sale alcoholic beverage sales establishments;
• Establish a “deemed approved” status for existing legal nonconforming alcoholic beverage sales establishments. Any existing legal nonconforming alcoholic beverage sales establishment that continues its activities must be in compliance with all “deemed approved” operational standards and provisions after the effective date of this draft ordinance;
• Develop seven operational standards for “deemed approved” alcohol beverage sales establishments and establish standards for automatic termination of “deemed approved” status for voluntarily discontinuance of active operations for more than 180 days; and
• Establish procedures for an Administrative Hearing Officer to conduct hearings and act upon violations of operational standards or conditions of approval.
Amendment of Section 16.88.030, “Public Hearing Notices”
Add “Administrative Hearing Officer Action” to the list of review authorities requiring mailed public notice.
Amendment of Section 16.108.030, “Revocation and Modification Procedure’
Add “the responsible party” as one of notice recipients for an administrative hearing.
Amendment of Section 16.168.050, “Findings and Decision”
Add new findings for alcohol-related activities or establishments and provide criteria for making a determination of Public Convenience or Necessity (PCN) for the sale of alcoholic beverages when a PCN is required by the State Department of Alcoholic Beverage Control (ABC).
Amendment of Section 16.240.020, Definitions of Specialized Terms and Phrases
Delete duplicate definitions that have been moved to Section 16.80.040.C.
Public Comment
On November 3, 2015, staff received an e-mail from a City resident with suggested revisions to the draft alcohol ordinance. The suggestions were related to the definition of Land Use Permit, the applicability of specific location restrictions for on-sale alcoholic beverage establishments, a time frame after which an alcohol-related Use Permit would become void, a recommendation to impose a condition of approval on all on-sale alcoholic beverage establishments to preclude the off-sale of alcoholic beverages from the premises, requiring a 12-month review and a 500-foot radius public notification for new alcohol-related Use Permits. After reviewing the e-mail, staff determined that no further revisions to the draft alcohol ordinance were warranted (see Attachment B - Public Comment).
In conclusion, the proposed Code Amendment would impose more stringent location restrictions, permitting requirements, and conditions of approval upon alcoholic beverage sales establishments. It would also provide operational standards for “deemed approved” alcohol beverage sales establishments and enforcement mechanisms for new and existing alcoholic beverage sales activities, in order to reduce and prevent associated criminal activities and public nuisances. The required affirmative findings for approval can be made and staff recommends that the Planning Commission adopt a Resolution forwarding a recommendation to the City Council to approve the proposed comprehensive Code Amendment to Title 16 of the SMC.
ENVIRONMENTAL REVIEW
The proposed Code Amendments is exempt from the California Environmental Quality Act (CEQA) under the “general rule” that CEQA applies only to projects that have the potential for causing significant environmental effects, as specified in Section 15061(b)(3). These amendments, due to their minimal potential impacts and required opportunities for further case-specific analysis, lack the potential for significant, adverse environmental impacts.
VOTES REQUIRED
A vote of a majority, or four (4) of the total authorized membership of the Planning Commission, is required for the Commission to take an action on this matter.
Attachment A - Ordinance (Redline Version)
Attachment B - Public Comment