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PC - Item 3B - Municipal Code Amendment 21-05ROSEMEAD PLANNING COMMISSION STAFF REPORT TO: THE HONORABLE CHAIR AND PLANNING COMMISSION FROM: PLANNING DIVISION DATE: MARCH 7, 2022 SUBJECT: MUNICIPAL CODE AMENDMENT 21-05 SUMMARY Municipal Code Amendment 21-05 (MCA 21-05) is a City initiated amendment to Title 17 ("Zoning") of the Rosemead Municipal Code by amending Sections 17.28.030(C)(4) and 17.30.040(E) permitting sit-down restaurants with a minimum requirement of 1,000 square feet to obtain an Administrative Use Permit ("AUP") for beer/wine sales in the Neighborhood Commercial (C-1), Medium Commercial (C-3), Regional Commercial (C- 4), Central Business District (CBD), and Residential/Commercial Mixed -Use Development Overlay (RC-MUDO) zones, in place of a Conditional Use Permit ("CUP"). The amendment is intended to assist the City's restaurant business community and provide relief to those that are facing economic hardship from the COVID-19 pandemic. The AUP is an administrative review by the Community Development Director, whereas the CUP is approved by the Planning Commission. ENVIRONMENTAL DETERMINATION MCA 21-05 is not a project pursuant to California Environmental Quality Act (CEQA) Guideline 15378, because the activity undertaken involves general text amendments that would not cause either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment and does not meet the definition of a "Project" under CEQA. The proposed Code Amendment is also exempt from CEQA under Section 15061(b)(3) of the CEQA Guidelines because CEQA only applies to projects which have the potential for causing a significant effect on the environment. As a series of text amendments, it can be seen with certainty that there is no possibility that the ordinance will have a significant effect on the environment. STAFF RECOMMENDATION That the Planning Commission: 1. Conduct a public hearing and receive public testimony, and Planning Commission Meeting March 7, 2022 Page 2 of 13 2. Adopt Planning Commission Resolution No. 22-03 with findings (Exhibit "A"), a resolution recommending that the City Council adopt Ordinance No. 1009 (Exhibit "B") for the approval of MCA 21-05. DISCUSSION On September 7, 2021, the City Council adopted the Freeway Corridor Mixed -Use (FCMU) Overlay, which permits a sit-down restaurant larger than 1,000 square feet to serve beer/wine with an Administrative Use Permit ("AUP"), provided that a valid license from Alcoholic Beverage Control ("ABC") is obtained. The Zoning Code defines a sit- down restaurant as, "an establishment engaged in the business of selling food and beverages, including alcoholic beverages, prepared on site for primarily on-site consumption. Food and beverages are served to the customer at a fixed location (i.e., booth, counter, or table). Food and beverages are ordered from a menu. Customers typically pay for food and beverages after service and/or consumption. The sale or service of sandwiches, whether prepared in the kitchen or made elsewhere and heated on the premises, or snack foods, shall not constitute a sit-down restaurant." During that meeting, the City Council requested staff to review the permitting process for on-site consumption of beer and wine incidental to a sit-down restaurant use in the other commercial zones like the C-1, C-3, CA CBD, and RC-MUDO zones. The City currently requires a Conditional Use Permit ("CUP") for any business that sells alcoholic beverages for on-site or off-site consumption. The CUP for alcoholic beverages is a discretionary process, subject to a public hearing that can take approximately three to six months and is approved by the Planning Commission. In response to the City Council's request, staff prepared an ordinance that would streamline the current permitting process and allow restaurants to serve beer/wine incidental to sit-down dining. The AUP process is administrative and approved by the Director of Community Development. In addition, the process could be completed at a fraction of the time and cost of a CUP. The AUP process would still be reviewed by both the Public Safety Department and Community Development Department and require the typical conditions of approval that are applied to alcohol-related CUPs. The amendment is intended to assist the City's restaurant business community that are facing economic hardship from the COVID-19 pandemic. A comparison of the fees and requirements for a CUP and an AUP are provided below: • CUP: o Application Fees: $1,985.00 ■ Application Fee: $1,320.00 ■ CEQA Exemption Fee: $90.00 ■ Publication Fee: $500.00 ■ LA County Recording Fee: $75.00 o Application Requirements: Application Form, Applicant and Property Owner Affidavits, Site, Floor, and Elevation Plans (15 sets), Environmental Information Application, and Affected Property Owner's Map and Labels (300 -foot Radius) Planning Commission Meeting March 7, 2022 Page 3 of 13 o Approval Body: Planning Commission • AUP: o Application Fees: $1,165.00 ■ Application Fee: $500.00 ■ CEQA Exemption Fee: $90.00 ■ Publication Fee: $500.00 ■ LA County Recording Fee: $75.00 o Application Requirements: Application Form, Applicant and Property Owner Affidavits, Site, Floor, and Elevation Plans (five sets), and Affected Property Owner's Map and Labels (300 -foot Radius) o Approval Body: Community Development Director MCA 21-05 is consistent with the Land Use and Zoning Goal of the City's 2030 Strategic Plan (Goal H) as one action is to "Attract new business by streamlining the alcohol licensing permit process." The restaurant business community has suffered significant sales and job losses since the COVID-19 outbreak began. Alcohol sales may assist existing restaurants stay afloat and draw new restaurant businesses to the City as they contribute to restaurant revenue. MUNICIPAL CODE REQUIREMENTS Per Rosemead Municipal Code Section 17.152.060, amendments to [the] Zoning Code may be approved only if all of the following findings are first made: A. The proposed amendment is consistent with the General Plan and any applicable specific plan; RECOMMENDED FINDING: The proposed amendment is consistent with the goals, policies, and objectives of the General Plan. Policy 2.1 of Goal 2 of the Land Use Element is to establish a well-balanced and carefully planned collection of signature retail anchors, general retail outlets, casual to upscale restaurants, and upscale overnight accommodations which can take advantage of the High Intensity Commercial designated sites' accessibility to major roadway corridors. The proposed code amendments assist the City's restaurant business community and provide relief to those that are facing economic hardship from the COVID-19 pandemic. B. The proposed amendment will not be detrimental to the public interest, health, safety, convenience or welfare of the City; and RECOMMENDED FINDING: Adopting this Ordinance will not be detrimental to the public interest, health, safety, convenience or welfare of the City because the AUP process would still be reviewed by both the Public Safety Department and Community Development Department and require the typical conditions of approval that are applied to alcohol-related CUPs. The amendment is intended to Planning Commission Meeting March 7, 2022 Page 4 of 13 assist the City's restaurant business community that are facing economic hardship from the COVID-19 pandemic. C. The proposed amendment is internally consistent with other applicable provisions of [the] Zoning Code. RECOMMENDED FINDING: The City's Zoning Code currently allows alcohol sales in conjunction with a sit-down restaurant in the C-1, C-3, C-4, CBD, and RC- MUDO zones. The amendment would streamline the current permitting process and allow restaurants to serve beer/wine incidental to sit-down dining. The AUP process is administrative and approved by the Director of Community Development. In addition, it would still be reviewed by both the Public Safety Department and Community Development Department and require the typical conditions of approval that are applied to alcohol-related CUPs. The amendment is intended to assist the City's restaurant business community that are facing economic hardship from the COVID-19 pandemic. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Prepared by: 4�_� Lily Valenzuela Planning & Economic Development Manager Submitt Ben Assistant City Manager/Director of Community Development EXHIBITS: A. Planning Commission Resolution No. 22-03 B. Draft Ordinance No. 1009 Planning Commission Meeting March 7, 2022 Page 5 of 13 EXHIBIT "A" PC RESOLUTION 22-03 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ROSEMEAD, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, RECOMMENDING THAT THE CITY COUNCIL ADOPT ORDINANCE NO. 1009 FOR THE APPROVAL OF MUNICIPAL CODE AMENDMENT 21-05, AMENDING SECTIONS 17.28.030(C)(4) AND 17.30.040(E) OF TITLE 17 (ZONING) OF THE ROSEMEAD MUNICIPAL CODE, PERMITTING SIT-DOWN RESTAURANTS WITH A MINIMUM REQUIREMENT OF 1,000 SQUARE FEET TO OBTAIN AN ADMINISTRATIVE USE PERMIT ("AUP") FOR BEER/WINE SALES IN THE NEIGHBORHOOD COMMERCIAL (C-1), MEDIUM COMMERCIAL (C-3), REGIONAL COMMERCIAL (C-4), CENTRAL BUSINESS DISTRICT (CBD), AND RESIDENTIAL/COMMERCIAL MIXED-USE DEVELOPMENT OVERLAY (RC-MUDO) ZONES, IN PLACE OF A CONDITIONAL USE PERMIT ("CUP") WHEREAS, Section 17.152.060 of the Rosemead Municipal Code provides the criteria for a Zoning Code Amendment; WHEREAS, Sections 65854 and 65855 of the California Government Code and Section 17.152.040 of the Rosemead Municipal Code authorizes the Planning Commission to review and make recommendations to the City Council regarding amendments to the City's Zoning Code; WHEREAS, on February 24, 2022, a notice was published in the newspaper and notices were posted at six public locations, specifying the availability of the proposal, and the date, time, and location of the public hearing for Municipal Code Amendment 21-05; WHEREAS, on March 7, 2022, the Planning Commission held a duly noticed and advertised public hearing to receive oral and written testimony relative to Municipal Code Amendment 21-05; and WHEREAS, the Rosemead Planning Commission has sufficiently considered all testimony presented to them in order to make the following determination. NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of Rosemead as follows: SECTION 1. The Ordinance is not a project pursuant to California Environmental Quality Act (CEQA) Guideline 15378, because the activity undertaken involves general text amendments that would not cause either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment Planning Commission Meeting March 7, 2022 Page 6 of 13 and does not meet the definition of a "Project" under CEQA. The proposed Code Amendment is also exempt from CEQA under Section 15061(b)(3) of the CEQA Guidelines because CEQA only applies to projects which have the potential for causing a significant effect on the environment. As a series of text amendments, it can be seen with certainty that there is no possibility that the ordinance will have a significant effect on the environment. SECTION 2. The Planning Commission HEREBY RECOMMENDS the following findings of fact do exist to justify approving Municipal Code Amendment 21-05, in accordance with Section 17.152.060 of the Rosemead Municipal Code, as follows: A. The proposed amendment is consistent with the General Plan and any applicable specific plan; FINDING: The proposed amendment is consistent with the goals, policies, and objectives of the General Plan. Policy 2.1 of Goal 2 of the Land Use Element is to establish a well-balanced and carefully planned collection of signature retail anchors, general retail outlets, casual to upscale restaurants, and upscale overnight accommodations which can take advantage of the High Intensity Commercial designated sites' accessibility to major roadway corridors. The proposed code amendments assist the City's restaurant business community and provide relief to those that are facing economic hardship from the COVID-19 pandemic. B. The proposed amendment will not be detrimental to the public interest, health, safety, convenience or welfare of the City; and FINDING: Adopting this Ordinance will not be detrimental to the public interest, health, safety, convenience or welfare of the City because the AUP process would still be reviewed by both the Public Safety Department and Community Development Department and require the typical conditions of approval that are applied to alcohol- related CUPs. The amendment is intended to assist the City's restaurant business community that are facing economic hardship from the COVID-19 pandemic. C. The proposed amendment is internally consistent with other applicable provisions of this Zoning Code. FINDING: The City's Zoning Code currently allows alcohol sales in conjunction with a sit-down restaurant in the C-1, C-3, C-4, CBD, and RC-MUDO zones. The amendment would streamline the current permitting process and allow restaurants to serve beer/wine incidental to sit-down dining. The AUP process is administrative and approved by the Director of Community Development. In addition, it would still be reviewed by both the Public Safety Department and Community Development Department and require the typical conditions of approval that are applied to alcohol- related CUPs. The amendment is intended to assist the City's restaurant business community that are facing economic hardship from the COVID-19 pandemic. Planning Commission Meeting March 7, 2022 Page 7 of 13 SECTION 3. The Planning Commission HEREBY RECOMMENDS the City Council adopt Ordinance No. 1009 for the approval of MCA 21-05. SECTION 4. This resolution is the result of an action taken by the Planning Commission on March 7, 2022, by the following vote: AYES: NOES: ABSTAIN: ABSENT: SECTION 5. The Secretary shall certify to the adoption of this resolution and shall transmit copies of same to the Rosemead City Clerk. PASSED, APPROVED, and ADOPTED this 7th day of March, 2022. Chair Berry CERTIFICATION I hereby certify that the foregoing is a true copy of a resolution adopted by the Planning Commission of the City of Rosemead at its regular meeting, held on the 7th day of March, 2022, by the following vote: AYES: NOES: ABSTAIN: ABSENT: Ben Kim, Secretary APPROVED AS TO FORM: Kane Thuyen, Planning Commission Attorney Burke, Williams & Sorensen, LLP Planning Commission Meeting March 7, 2022 Page 8 of 13 EXHIBIT "B" ORDINANCE NO. 1009 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, FOR THE APPROVAL OF MCA 21-05, AMENDING SECTIONS 17.28.030(C)(4) AND 17.30.040(E) OF TITLE 17 (ZONING) OF THE ROSEMEAD MUNICIPAL CODE, PERMITTING SIT-DOWN RESTAURANTS WITH A MINIMUM REQUIREMENT OF 1,000 SQUARE FEET TO OBTAIN AN ADMINISTRATIVE USE PERMIT ("AUP") FOR BEER/WINE SALES IN THE NEIGHBORHOOD COMMERCIAL (C-1), MEDIUM COMMERCIAL (C-3), REGIONAL COMMERCIAL (C-4), CENTRAL BUSINESS DISTRICT (CBD), AND RESIDENTIAL/COMMERCIAL MIXED-USE DEVELOPMENT OVERLAY (RC-MUDO) ZONES, IN PLACE OF A CONDITIONAL USE PERMIT ("CUP") THE CITY COUNCIL OF THE CITY OF ROSEMEAD DOES ORDAIN AS FOLLOWS: SECTION 1. Findings. The City Council HEREBY FINDS AND DETERMINES that facts do exist to justify approving Municipal Code Amendment 21-05, in accordance with Section 17.152.060 of the Rosemead Municipal Code ("RMC") as follows: A. The proposed amendment is consistent with the General Plan and any applicable specific plan; FINDING: The proposed amendment is consistent with the goals, policies, and objectives of the General Plan. Policy 2.1 of Goal 2 of the Land Use Element is to establish a well-balanced and carefully planned collection of signature retail anchors, general retail outlets, casual to upscale restaurants, and upscale overnight accommodations which can take advantage of the High Intensity Commercial designated sites' accessibility to major roadway corridors. The proposed code amendments assist the City's restaurant business community and provide relief to those that are facing economic hardship from the COVID-19 pandemic. B. The proposed amendment will not be detrimental to the public interest, health, safety, convenience or welfare of the City; and FINDING: Adopting this Ordinance will not be detrimental to the public interest, health, safety, convenience or welfare of the City because the AUP process would still be reviewed by both the Public Safety Department and Community Development Department and require the typical conditions of approval that are applied to alcohol-related CUPs. The amendment is intended to assist the City's restaurant business community that are facing economic hardship from the COVID-19 pandemic. Planning Commission Meeting March 7, 2022 Page 9 of 13 C. The proposed amendment is internally consistent with other applicable provisions of [the] Zoning Code. FINDING: The City's Zoning Code currently allows alcohol sales in conjunction with a sit-down restaurant in the C-1, C-3, C-4, CBD, and RC-MUDO zones. The amendment would streamline the current permitting process and allow restaurants to serve beer/wine incidental to sit-down dining. The AUP process is administrative and approved by the Director of Community Development. In addition, it would still be reviewed by both the Public Safety Department and Community Development Department and require the typical conditions of approval that are applied to alcohol-related CUPs. The amendment is intended to assist the City's restaurant business community that are facing economic hardship from the COVID-19 pandemic. SECTION 2. Code Amendment. RMC § 17.28.030(C)(4) [Permitted Uses] is hereby amended, as follows: 4. The following uses shall be the only uses for which a Conditional Use Permit or Administrative Use Permit may be applied for and granted in a residential/commercial mixed-use development: a. Conditional Use Permit 1) Any commercial use that operates after midnight; 2) Any establishment having an off -sale license for alcoholic beverages; 3) Any establishment (other than sit-down restaurants with 1,000 square feet of floor area or larger) having an on -sale license for alcoholic beverages. 4) Commercial recreation and entertainment; 5) Convenience markets subject to the requirements of Section 17.28.030.E.3; and 6) Libraries and museums. b. Administrative Use Permit 1) Any outdoor dining area; and 2) On -sale beer/wine sales for sit-down restaurants with 1,000 square feet of floor area or larger. Planning Commission Meeting March 7, 2022 Page 10 of 13 SECTION 3. Code Amendment. RMC § 17.30.040(E) is hereby amended, as follows: E. Permit Requirements. New Permits. a. A conditional use permit, obtained pursuant to the provisions of Chapter 17.132 (Conditional Use Permits), shall be required for any business (other than sit-down restaurants with 1,000 square feet of floor area or larger) that sells alcoholic beverages for on-site or off-site consumption. This requirement shall apply to any new business proposed to locate within the City, as well as to existing businesses applying for a new State permit to sell alcoholic beverages. All required permits and licenses shall be obtained prior to commencement of the use. b. An Administrative Use Permit, obtained pursuant to the provisions of Chapter 17.128 (Administrative Use Permits), shall be required for sit-down restaurants with 1,000 square feet of floor area or larger that sells beer/wine for on-site consumption. This requirement shall apply to any new business proposed to locate within the City, as well as to existing businesses applying for a new State permit to sell alcoholic beverages. All required permits and licenses shall be obtained prior to commencement of the use. 2. Required Findings. Prior to approval of a new or modified permit for an alcohol sales establishment, the Plamiiag GeffirBission Review Authority, as set forth under Table 17.120.020.1, shall find that the use is consistent with the purpose and intent of this section. This finding shall be in addition to the findings required by Chapters 17.128 (Administrative Use Permits) or 17.132 (Conditional Use Permits). In making the required finding, the Plaiuiing Commissie Review Authority shall consider the following: a. • The crime rate in the reporting district and adjacent reporting districts as compared to other areas in the City. b. The numbers of alcohol-related calls for service, crimes, or arrests in the reporting district and in adjacent reporting districts. c. The proximity of the establishment to residential zoning districts, day care centers, hospitals, park and recreation facilities, places of worship, schools, other similar uses, and any uses that attract minors. d. Whether or not the proposed modification will resolve any current objectionable conditions. The burden of proving that the proposed use will not adversely affect the welfare of nearby residents or detrimentally affect nearby residentially zoned communities, day care centers, hospitals, park and recreation facilities, places of worship, schools, other similar uses, and any uses that attract minors shall be the applicant's. SECTION 4. Environmental Review. MCA 21-05 is not a project pursuant to California Environmental Quality Act (CEQA) Guideline 15378, because the activity undertaken Planning Commission Meeting March 7, 2022 Page 11 of 13 involves general text amendments that would not cause either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment and does not meet the definition of a "Project" under CEQA. The proposed Code Amendment is also exempt from CEQA under Section 15061(b)(3) of the CEQA Guidelines because CEQA only applies to projects which have the potential for causing a significant effect on the environment. As a series of text amendments, it can be seen with certainty that there is no possibility that the ordinance will have a significant effect on the environment. SECTION 5. Construction. This Ordinance must be broadly constructed in order to achieve the purposes stated in this Ordinance. It is the City Council's intent that the provisions of this Ordinance be interpreted or implemented by the City and others in a manner that facilitates the purposes set forth in this Ordinance. SECTION 6. Enforceability. Repeal of any provision of the RMC does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before this Ordinance's effective date. Any such repealed part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Ordinance. SECTION 7. Severability. If any part of this Ordinance or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Ordinance are severable. SECTION 8. Effective Date. This Ordinance shall take effect thirty (30) days after its adoption. SECTION 9. Publication. The City Clerk shall certify to the adoption of this Ordinance and shall publish a summary of this Ordinance and post a certified copy of the full Ordinance in the office of the City Clerk at least five days prior to the adoption and within 15 days after adoption of the Ordinance, the City Clerk shall publish a summary of the Ordinance with the names of the Council Members voting for and against the Ordinance. This Ordinance shall take effect thirty (3 0) days after the date of its adoption. Planning Commission Meeting March 7, 2022 Page 12 of 13 PASSED, APPROVED, AND ADOPTED this th day of , 2022. ATTEST: Ericka Hernandez, City Clerk Polly Low, Mayor APPROVED AS TO FORM: Rachel H. Richman, City Attorney Planning Commission Meeting March 7, 2022 Page 13 of 13 STATE OF CALIFORNIA COUNTY OF LOS ANGELES ) ss CITY OF ROSEMEAD ) I, Ericka Hernandez, City Clerk of the City of Rosemead, County of Los Angeles, State of California, hereby attest to the above signature and certify that Ordinance No. XXX was first introduced at the regular meeting of , 2022 by first reading. Said Ordinance was approved and adopted by the City Council of the City of Rosemead at a regular meeting held on the th day of 2022, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Ericka Hernandez, City Clerk