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HomeMy WebLinkAbout18 - PA2002-172 - Hotties Pizza-325 Old Newport BlvdCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 18 January 28, 2003 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Planning Department Gregg Ramirez, Associate Planner (949) 644 -3219 gramirezPcity.newport- beach.ca.us SUBJECT: Hotties Pizza (PA2002 -172) 325 Old Newport Boulevard APPLICANT NAME: Dennis D'Alessio 325 Old Newport Boulevard Newport Beach, CA 92663 ISSUE: Should the City Council uphold the decision of the Planning Commission, modify the decision, or deny the proposed amendments to Use Permit No. 3622 that would allow the sale of beer and wine for on -site and off -site consumption (including delivery) and amend the hours of operation allowing the establishment to operate between Gam and midnight daily (6am to 10pm for the patio)? RECOMMENDATION: Staff recommends that the City Council hold a public hearing and either uphold or modify the decision of the Planning Commission to approve Hotties Pizza. DISCUSSION: Background: On January 9, 2002 the Planning Commission approved an amendment to Use Permit No. 3622 permitting the sale of alcoholic beverages (Type 41 beer and wine license) for on -site and off -site consumption and delivery of beer and wine in conjunction with food deliveries. The approval capped alcoholic beverage sales on a quarterly basis at 35% of gross sales with the delivery of alcohol being further limited to 20% of total alcohol sales. Additionally, the approval included a change in the permitted hours of operation allowing the proposed restaurant to operate between 6:00am and midnight daily with a Hotties Pizza January 28, 2002 Page 2 condition that the patio close at 10:OOpm daily. A full discussion of the proposed amendments is included in the attached Planning Commission staff report. A draft excerpt of the minutes of the January 9, 2002 Planning Commission hearing and a copy of Planning Commission Resolution No. 1585 (includes conditions of approval) are also attached. Use Permit No. 3622 (Billo's Caf6) was approved by the Planning Commission on March 19, 1998. The approval was for a full - service, small -scale eating and drinking establishment (coffee shop). The conditions of approval limited the hours of operation to 6am to 3pm daily and prohibited the service of alcoholic beverages. The approval also included a waiver of the required off - street parking. Subsequently, Outdoor Dining Permit No. 52 was administratively approved allowing the outdoor dining in a patio area adjacent to the main entrance on the south side of the building. The Planning Commission focused their attention on the sale of alcohol and the proposed hours of operation. The sale of alcohol within the restaurant did not concern the Commission; however, the delivery of alcohol was debated. Conditions recommended by the Police Department limiting delivery personnel to be a minimum of 21 years of age and verification that all alcohol customers are at least 21 years old were included as conditions of approval. The applicant will be recording the name, age and driver's license number of all recipients of alcohol deliveries and all employees will be required to complete a certified training program in responsible methods and skills for selling alcoholic beverages. Alcohol delivery may only occur with food delivery and the applicant stated that requests for the delivery of large quantities of alcohol will not be honored. The approval also permitted the sale of beer and wine for off -site consumption in conjunction with the purchase and pick -up of "take out" food orders by customers. The Commission believed that the Use Permit was adequately regulated to minimize potential problems. The applicant requested a closing time of 2:OOam daily; based upon a recommendation by staff, the hours were limited to 12 midnight with the outdoor patio closing at 10:OOpm. These hours were established with the belief that they would minimize potential land use conflicts. Environmental Review: This project has been reviewed, and it has been determined that it is categorically exempt from the requirements of the California Environmental Quality Act under Class 1 (Minor Alteration of Existing Structures). Public Notice: Notice of this hearing was published in the Daily Pilot with the agenda, mailed to property owners within 300 feet of the property and posted at the site a minimum of 10 Hotties Pizza January 28, 2002 Page 3 days in advance of this hearing consistent with the Municipal Code. Additionally, the item appeared upon the agenda for this meeting, which was posted at City Hall and on the city website. CONCLUSION: If the Council chooses to concur with the decision of the Planning Commission, staff recommends the Council adopt a resolution upholding the decision of the Planning Commission. Due to the Council's stated concern about the delivery of alcohol, staff also has prepared a draft resolution for project approval that does permit on -site and off -site consumption of beer and wine and does not permit the delivery of alcohol (Attachment D). Prepared by: Gregg S. "Ramirez, Associ a Planner Attachments Submitted by: Patricia L. Temple, Pla ning Director A. Planning Commission Resolution No. 1585 (unsigned). B. Excerpt of the draft minutes from the January 9, 2002 Planning Commission meeting. C. Planning Commission Staff Report (includes project plans) D. Draft City Council Resolution. ATTACHMENT PLANNING COMMISSION RESOLUTION NO. 1585, FINDINGS FOR PROJECT APPROVAL AND CONDITIONS OF APPROVAL LA RESOLUTION NO. 1585 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH APPROVING AMENDMENT TO USE PERMIT NO. 3622 (PA2002 -172) FOR PROPERTY LOCATED AT 325 OLD NEWPORT BOULEVARD THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS, RESOLVES AND ORDERS AS FOLLOWS: Section 1. An application was filed by Dennis D'Alessio with respect to property located at 325 Old Newport Boulevard and legally described as Lot 24 of Tract 27, requesting approval of Amendment to Use Permit No. 3622 to authorize a Type 41 ABC license for on -site and off -site consumption of alcoholic beverages pursuant to the Alcoholic Beverage Outlet Ordinance (ABO), expansion of hours of operation, and delivery of food and beverages. The site is designated Retail & Service Commercial by both the General Plan Land Use Element and Zoning Code. Section 2. A public hearing was held on January 9, 2003 in the City Hall Council Chambers, 3300 Newport Boulevard, Newport Beach, California. A notice of time, place and purpose of the aforesaid meeting was given. Evidence, both written and oral, was presented to and considered by the Planning Commission at this meeting. Section 3. The Planning Commission finds as follows: The proposed location of the alcoholic sales establishment needing this use permit, and the proposed conditions under which it would be operated or maintained, is consistent with the General Plan and the purpose of the RSC district in which the site is located; will not be detrimental to the public health, safety, peace, morals, comfort, or welfare of persons residing or working in or adjacent to the neighborhood of such use; and will not be detrimental to the properties or improvements in the vicinity or to the general welfare of the city. The amended use permit pertains to the on -site and off -site consumption of alcoholic beverages in conjunction with food sales in a building that is designated and zoned for this activity. The use has been conditioned in such a manner to minimize the impacts associated with the sale of alcoholic beverages. The plans, as conditioned, meet the design and development standards for eating and drinking establishments including the accessory sales beer and wine. 2. The operational characteristics of the proposed use, including the hours of operation, are consistent with Municipal Code requirements. Any change in the operational characteristics, including a change in the hours of operation, would require an amendment to the Use Permit, reviewed by the Planning Commission. 3. The proposed project is consistent with the purpose and intent of Chapter 20.89 of the Municipal Code (Alcoholic Beverage Outlets Ordinance) for the following reasons: a. The convenience of the public can be served by the sale of desired beverages in conjunction with a full - service, sit -down restaurant that is complementary to surrounding uses within the Old Newport Boulevard area. Alcohol service is typical and expected by the public in a full - service restaurant setting. i City of Newport Beach Planning Commission Resolution No. _ Page 2 of 6 b. The crime rate in the police reporting district and adjacent reporting districts is not likely to increase as a result of the proposed use provided that the use is operated in accordance with all conditions of approval as a restaurant as opposed to a bar or nightclub, with the on -site consumption of alcohol incidental to and subordinate to food sales and that off -site consumption of alcohol is accessory to the sale of food items to persons of legal drinking age. C. The number of alcohol licenses within the report district and adjacent reporting districts is higher than the County -wide average. This is due to the nature of the land uses in the district and a large number of eating and drinking establishments. The addition of one Type 41 license will not result in a substantial increase in licenses within the report district. d. The percentage of alcohol - related arrests in the police reporting district in which the project is proposed is higher than the percentage citywide. However, on -site consumption is not expected to increase alcoholic related crime in that the use is incidental to the use of the site as an eating and drinking establishment. e. There are no sensitive uses such as residences, day care centers, schools, or park and recreation facilities in the vicinity of the project site. 4. The project has been reviewed, and it qualifies for a categorical exemption pursuant to the California Environmental Quality Act under Class 1 (Minor alteration of existing structures). Section 4. Based on the aforementioned findings, the Planning Commission hereby approves Amendment to Use Permit No. 3622, subject to the Conditions set forth in Exhibit "A." Section 5. This action shall become final and effective fourteen days after the adoption of this Resolution unless within such time an appeal is filed with the City Clerk or this action is called for review by the City Council in accordance with the provisions of Title 20, Planning and Zoning, of the Newport Beach Municipal Code. PASSED, APPROVED AND ADOPTED THIS 9th DAY OF JANUARY 2003. IN i Steven Kiser, Chairman Shant Agajanian, Secretary AYES: Toerge, Ag_aianian, Kiser, Tucker NOES: McDaniel, Gifford, Selich I City of Newport Beach Planning Commission Resolution No. _ Paee 3 of 6 EXHIBIT "A" CONDITIONS OF APPROVAL AMENDMENT TO USE PERMIT NO. 3622 1. The development shall be insubstantial conformance with the floor plan approved by the Planning Commission on March 19, 1998. 2. This Amendment to a Use Permit for an alcoholic beverage outlet granted in accordance with the terms of this chapter (Chapter 20.89 of the Newport Beach Municipal Code) shall expire within 12 months from the date of approval unless a license has been issued or transferred by the California State Department of Alcoholic Beverage Control prior to the expiration date. 3. Any change in operational characteristics, hours of operation, expansion in area, or operation characteristics, or other modification to the floor plan, shall require an amendment to this Use Permit or the processing of a new Use Permit. 4. Should this business be sold or otherwise come under different ownership, any future owners or assignees shall be notified of the conditions of this approval by either the current business owner, property owner or the leasing agent. Future owners, operators or assignees shall submit, within 30 days of transfer or sale of the business or alcohol license, a letter to the Planning Department acknowledging their receipt and acceptance of the limitations and conditions of approval of this Use Permit. 5. The applicant shall comply with all federal, state, and local laws. Material violation of any of those laws in connection with the use will be cause for revocation of this permit. 6. This use permit may be reviewed, modified or revoked by the Planning Commission or City Council should they determine that the proposed uses or conditions under which it is being operated or maintained is detrimental to the public health, welfare or materially injurious to property or improvements in the vicinity or if the property is operated or maintained so as to constitute a public nuisance. 7. Trash generated by the business shall be screened from view from adjoining properties except when placed for pick -up by refuse collection agencies. Trash receptacles for patrons shall be conveniently located both inside and outside the proposed facility. S. No outdoor loudspeaker or paging system shall be permitted in conjunction with the operation. 9. All signs shall conform to the provisions of Chapter 20.67 of the Municipal Code. No temporary "sandwich" signs or similar temporary signs shall be permitted, either on -site or off -site, to advertise the restaurant. 10. The sale of beer and wine in conjunction with the eating and drinking establishment shall be subordinate to the sale of other food and beverages. Subordinate is defined as less than 35 %. The sale beer and wine of for off -site consumption, including off -site deliveries, shall be in conjunction with the sale of food items only. The sale of beer and wine for off -site consumption, including off - site deliveries, shall not exceed 20% of the total sales of beer and wine. The applicant or operator n I City of Newport Beach Planning Commission Resolution No. _ Page 4 of 6 shall maintain adequate records to determine compliance with this condition and shall provide the City said records when requested. The time period for the purposes of conducting this review shall be quarterly. Gross receipts shall be reviewed by the City for purposes of compliance with the requirements of the Zoning Code and Use Permit if the use is believed to be operating in non- compliance. If the sales percentages review finds that the applicant is not in compliance, this application shall be brought forward to the Planning Commission for review. 11. Approval does not permit the premises to operate as a bar, tavern, cocktail lounge or night club as defined by the Municipal Code, unless the Planning Commission first approves a Use Permit. 12. The interior area authorized for on -site alcoholic beverage consumption in conjunction with a Type 41 license shall be limited to 650 sq. ft. as delineated on the approved floor plans with a maximum of 20 seats. On -site consumption of alcoholic beverages may be allowed in the outdoor patio dining area and the total number of seats permitted in the outdoor area shall be limited to a maximum of eight. Signs as required by the Department of Alcoholic Beverage Control (ABC) shall be displayed at all times. The applicant shall provide and maintain necessary barricades around the patio as required by ABC. Substantial changes to the floor plans shall require prior approval by the Plamiing Commission. 13. Hours of operation shall be from 6:00 AM to 12:00 midnight daily, and the patio outside dining area shall be from 6:00 AM to 10:00 PM daily. 14. Live entertainment and dancing shall be prohibited at all times. 15. A Special Events Permit is required for any event or promotional activity outside the normal operational characteristics of the business or any other activities as specified in the Newport Beach Municipal Code to require such special events permit. 16. The exterior of the alcoholic beverage outlet shall be maintained free of litter and graffiti at all times. The owner or operator shall provide for daily removal of trash, litter debris and graffiti from the premises and on all abutting sidewalks within 20 feet of the premises. 17. The alcoholic beverage outlet operator shall take reasonable steps to discourage and correct objectionable conditions that constitute a nuisance in parking areas, sidewalks and areas surrounding the alcoholic beverage outlet and adjacent properties during business hours, if directly related to the patrons of the subject alcoholic beverage outlet. If the operator fails to discourage or correct nuisances, the Planning Commission may review, modify or revoke this Use Permit in accordance with Chapter 20.96 of the Zoning Code. 18. Alcoholic beverage sale from drive -up or walk -up windows shall be prohibited. 19. Any event or activity staged by an outside promoter or entity, where the business owner or his employees or representatives share in any profits, or pay any percentage or commission to a promoter or any other person based upon money collected as a door charge, cover charge or any other form of admission charge, including minimum drink orders or sale of drinks is prohibited. L City of Newport Beach Planning Commission Resolution No. Page 5 of 6 20. Loitering, open container, and other signs specified by the Alcoholic Beverage Control Act shall be posted as required by the State Department of ABC. 21. All owners, managers and employees selling alcoholic beverages shall undergo and successfully complete a certified training program in responsible methods and skills for selling alcoholic beverages. The certified program must meet the standards of the California Coordinating Council on Responsible Beverage Service or other certifying/licensing body, which the State may designate. The establishment shall comply with the requirements of this section within 180 days of the issuance of the certificate of occupancy. Records of each owner's, manager's and employee's successful completion of the required certified training program shall be maintained on the premises and shall be presented upon request by a representative of the City of Newport Beach. 22. The applicant is required to obtain all applicable permits from the City Building and Fire Departments. The construction plans must comply with the most recent, City- adopted version of the California Building Code. Adequate access and exiting must be provided in accordance with the Building Code. 23. The facility and related off - street parking shall conform to the requirements of the Uniform Building Code. The project shall comply with State Disabled Access requirements. 24. Where grease may be introduced into the drainage systems, grease interceptors shall be installed on all fixtures as required by the Uniform Plumbing Code, unless otherwise approved by the Building Department and the Utilities Department. 25. Health Department approval is required for any changes to the kitchen and other portions of the building that require a Building Permit. 26. Handicapped assessable public restrooms are required either within the restaurant or within the building complex. The restrooms must be in compliance with the Uniform Plumbing Code and all applicable Uniform Building Code requirements. 27. Delivery vehicles shall not park within the public right -of -way of Old Newport Boulevard. 28. Upon evidence that noise generated by the project exceeds the noise standards established by Chapter 20.26 (Community Noise Control) of the Municipal Code, the Planning Director may require that the applicant or successor retain a qualified engineer specializing in noise /acoustics to monitor the sound generated by the restaurant facility to develop a set of corrective measures necessary in order to insure compliance. 29. Age of all employees, including delivery employees shall be a minimum of 21 years. 30. Proof of age of any off -site customer shall be required for any sales of beer and wine and said customer shall be a minimum of 21 years in age. 31. The applicant shall continue to maintain an encroachment permit and agreement with the City providing for a minimum of 4 parking spaces located on the City right -of -way property contiguous to and south of the property. I City of Newport Beach Planning Commission Resolution No. Page 6 of 6 32. The operator of the restaurant facility shall be responsible for the control of noise generated by the subject facility. The noise generated by the proposed use shall comply with the provisions of Chapter 10.26 of the Newport Beach Municipal Code. The maximum noise shall be limited to no more than depicted below for the specified time periods unless the ambient noise level is higher: 10 Between the hours of 7:OOAM and 10:00PM Between the hours of 10:00PM and 7:OOAM Location Interior Exterior Interior Exterior Residential Property 45dBA 55dBA 40dBA 50dBA Residential Property located within 100 feet of a commercial ro e 45dBA 60dBA 45dBA 50dBA Mixed Use Property 45dBA 60dBA 45dBA 50dBA Commercial Property N/A 65dBA N/A 60dBA 10 ATTACHMENT B EXCERPT OF DRAFT MINUTES FROM JANUARY 9, 2002 PLANNING COMMISSION MEETING City of Newport Beach Planning Commission Minutes January 9, 2003 Zoning Code Amendment CA2002.007 (PA2002 -218) Landmark Buildings Amendment to e 20 of the Newport Beach Municipal Code to designate certain types of b U116 s as "Landmark Buildings" and modify restrictions on nonconforming use in La ark buildings. Ms. Temple stated that staff reques item be continued to January 23, 2003. Motion was made by Commissioner Selich ontinue this item to January 23, 2003. Ayes: Toerge, Agalanian, McDaniel, Kiser, Gifford, Noes: None SUBJECT: Hotties Pizza, Amendment to UP3622 (PA2002 -172) 325 Old Newport Boulevard Request for a Use Permit pursuant to the Alcoholic Beverage Outlet Ordinance (ABO) to authorize the sale of alcoholic beverages for on -site and off -site consumption (Type 41 beer and wine license) at an existing restaurant located in the Old Newport Boulevard Specific Plan (SP -9) District. Referencing a memo from James Campbell, Chairperson Kiser asked for and received the following clarification: • The applicant submitted a request to change condition 10 addressing the percentages of sales of alcoholic beverages. Staff is recommending that the sale of alcoholic beverages is subordinate and less than 50% and that the sale of beer and wine for off site consumption, including off site deliveries, shall not exceed 20% of that 50% of the total sales of beer and wine. • Condition 13 changes relating to the sale of beer and wine on the outdoor patio; additional limitations of the Police Department regarding signage and barricades pursuant to the ABC as well as the hours on the patio due to late night activities and sound carrying past the commercial area to the residential area. • Condition 14 changes relating to the hours of operation, the applicant wanted to stay open until 2:00 a.m., seven days a week. The applicant has revised the hours to stay open until 2:00 a.m. on Thursday, Friday and Saturday and close at midnight the other days of the week. The Police Department is opposed to this change and recommends that the patio be closed at 10:00 p.m. Staff is not recommending any change to this condition. At Commission inquiry, Mr. Campbell noted: 3 INDEX Item 1 PA2002 -218 Continued to 01/23/2003 Item 2 PA2002 -172 Approved )�L City of Newport Beach Planning Commission Minutes January 9, 2003 Service of wine and beer on the patio. Not necessary to limit the hours of service as it is a small patio and patios of larger size, close to residential units, has been allowed in other areas of the City. Public comment was opened. Joan Burton, applicant, noted that she has read the staff report and agrees with the findings and had suggested the changes to conditions 10, 13 and 14. At Commission inquiry stated: • The delivery of alcoholic beverages to homes is considered a luxury service to the clientele to compliment the food. • There is a form that is to be filled out including the name, purchaser's address, phone number, driver's license. The customer would sign this form and the form will become part of the business record keeping. • Minimum delivery may be around $15.00, but they are still working out the pricing. The minimum delivery will not include the alcohol purchase. • The main purpose is serving and delivering food and she would not be adverse to setting a limit on the alcohol delivery. • She is not aware of any other pizza establishments that deliver alcohol with their food. • Take out portion of the business will be about 40 %. Commissioner Tucker asked staff if the Police Department is okay with the delivery of wine or beer. Mr. Campbell noted: • The Police Department is agreeable to this provided it is conditioned as in the report. • The primary concern is to be sure that minors are not buying alcohol. • Information will be taken at the home at the time of delivery and is an enforcement issue for the Police Department. Wayne Zippy, citizen, noted: • According to the Alcoholic Beverage Control laws, it is illegal to remove alcohol to be served and /or delivered. We would be in violation if this was allowed to happen. • The City can not supercede the ABC laws. • As a member of the Police Department for thirty years, they never allowed from any establishment, alcohol to leave under any conditions unless it was a licensed store. You would hurt local businesses that do sell that are licensed and paying taxes and licensed to deliver that type of thing to a customer. You are taking that right away from them. Chairperson Kiser answered: • The actual ABC laws are not within the purview of the Planning Commission. • The Commission deals with land use matters and matters of the ABC as it was passed. INDEX i� City of Newport Beach Planning Commission Minutes January 9, 2003 INDEX • The Commission relies on staff and the Police Department, who has reviewed the application. Mr. Campbell noted staff had worked with the ABC and they confirmed this is something that can be permitted. It is unusual, but it can be done. The applicant has indicated their method on how they are going to insure that alcohol is not bought by minors. Mr. Zippy noted that the enforcement responsibility is not on the individual delivering the alcohol. You can not do that, they are not law enforcement, nor peace officers of the State of California. You are causing them to enforce laws that they are not qualified to do. If you do that, you are jeopardizing the City to civil litigation as well as criminal. Public comment was closed. Chairperson Kiser noted that the ABC has approved this application as conditioned as well as the Police Department has reviewed the application and made revisions to some of the conditions. I am ready to rely on what we have in front of us. If this is approved, then this business will be licensed. Commissioner McDaniel expressed his concern of the alcohol delivery aspect of this proposal and therefore will vote against this item. Commissioner Gifford noted she would not support this application. This use permit was originally granted for a little coffee shop that was to serve a high proportion of walk -in traffic from the surrounding businesses. The Commission granted a parking waiver because there was to be a lot of walk -in traffic and no one thought of this as a destination place to pick up food. This will become different as it is a place where you can get alcohol until twelve o'clock at night. Given the statistics, I will not be voting to approve it. Commissioner Agajanian asked about the four spaces on the public right of way as referenced in condition 32. Mr. Edmonston noted that there was an initial encroachment fee with the application process, but there is no annual fee. In lieu of a charge, they were required to re- surface and re- stripe the area when it was initially approved. This was considered to be a reasonable trade off. There are around 40 spaces that serve all the businesses in that immediate area on both sides of Old Newport Blvd. Continuing, Commissioner Agajanian noted his concerns of the intensified use of this project, the amount of traffic and the hours. Comparing the expanse of alcohol service and the percentage of gross receipts, that is a large volume of alcohol. This proposed use is quite a change from the original coffee shop use and there is quite a dependency on the alcohol service that wasn't there originally. 4 14 City of Newport Beach Planning Commission Minutes January 9, 2003 INDEX Commissioner Toerge noted that he has faith in the Police Department assessment of this proposal and that conceptually he does not have a problem with the alcohol delivery aspect of it. Commissioner Kiser noted that this proposal has been approved by the Police Department and the ABC and has no problem with this application. He would like to see the 507o number come down to 30 -40 %, at the most, as a percentage of total sales. (the alcohol being not more than 30 -40 %). 1 see no problem with delivery of alcohol to the homes; hours limited to midnight and with the patio closing at 10:00 p.m. Chairperson Kiser asked Commissioners about the parking issue Commissioner Toerge noted he supports the project and would like to see a reduced number of alcohol sales. Parking not a concern. Commissioner Agajanian noted he would support the application without any changes to the parking, but with the reduction of the alcohol percentage and current hours. Commissioner McDaniel noted parking is not a problem. Commissioner Gifford noted her concern of increased vehicular traffic and the additional use of city provided parking spaces for this business. Commissioner Selich noted he was not bothered by the parking, He is not in favor of the project because it is a small space approved for a less intense operation as a caf6. Commissioner Tucker noted that he is concerned about the delivery of alcohol to homes. If this was beer and wine sold with a meal in the project, I would feel differently about it. Staff noted that the six pack condition recommended by the Police Department was not included in the proposed conditions of approval attached to the draft resolution. Motion was made by Chairperson Kiser to adopt Resolution No. 1585 approving the requested amendment to Use Permit No. 3622 (PA2002 -220) subject to the findings and conditions included within the attached draft resolution and modified: • The conditions contained in the January 9th memorandum from James Campbell. • With the further revision of condition 10 that 'subordinate' is defined as less than 35 %. • As contained in the staff report, the hours would be as shown in revised condition 14, 6 a.m. to midnight daily, the patio dining area from 6 a.m. to 10:00 p.m. daily. • Alcoholic beverages service is allowed on the patio. Substitute motion was made by Commissioner McDaniel for the some as stated above but with no alcohol delivery. City of Newport Beach Planning Commission Minutes January 9, 2003 Chairperson Kiser noted that this is a new concept and may work very well. Ayes: Agajanian, McDaniel Noes: Toerge, Kiser, Gifford, Selich, Tucker Substitute motion failed. Commissioner Toerge asked for clarification on the percentage noted in condition ten. Chairperson Kiser asked the applicant if they agreed to the 357o total sales. Bonnie Pascua noted that the reason they wanted a higher percentage was because the higher end wines are more expensive as well as the imported beers. If a customer comes in and orders a salad and a high -end glass of wine, then it would appear that they sold more alcohol. Ms. Temple noted that the basis is on quarterly sales, not individual sales. Chairperson Kiser answered this is done on a quarterly basis so as long as the average is 35% or less. Ms. Pascua agreed with the 35%. The vote on the motion was called. Ayes: Toerge, Agajanian, Kiser, Tucker Noes: McDaniel, Gifford, Selich Balboa Inn, LLC (Michel Pourmussa) Amendment to Use Permit No. 3683 (PA2002 -236) 707 E. Ocean Front Approval of an dhwZdment to a previously approved Use Permit for the expansion of the Balboa to be located at 707 E. Ocean Front. Commissioner Tucker noted the T16<1ssues and window treatments differences between the small colored plans d November 21, 2002 and the larger reduced set of plans dated November 4, 20 Mr. Campbell answered that the staff analysis was ba on the November 41h set of plans. The architect will need to explain the difference tween the two sets. The colored exhibit was for illustrative purposes. Mr. Roger Stern, project architect noted the following: \ Drawings submitted November 4th, were the original concept and 6 INDEX Item 3 PA2002.236 W ATTACHMENT C PLANNING COMMISSION STAFF REPORT (INCLUDES PROJECT PLANS) iI CITY OF NEWPORT BEACH PLANNING COMMISSION STAFF REPORT Agenda Item No. 2 January 9, 2002 TO: PLANNING COMMISSION FROM: William Cunningham, Contract Planner (949) 644 -3200 SUBJECT: Hotties Pizza (PA2002 -172) 325 Old Newport Boulevard APPLICANT NAME: Dennis D'Alessio 325 Old Newport Boulevard Newport Beach, CA 92663 ISSUE: Should the Planning Commission approve an amendment to Use Permit No. 3622 to expand the hours of operation from 6:00 a.m. to 2:00 a.m. seven days a week and allow the sale of alcoholic beverages (Type 41 beer & wine) for on -site and off -site consumption pursuant to the Alcoholic Beverage Outlet Ordinance (ABO) at an existing eating and drinking establishment? RECOMMENDATION: Adopt Resolution No. approving the requested amendment to Use Permit No. 3622 (PA2002 -172) with conditions. DISCUSSION: Site /Project Overview: The existing eating and drinking establishment is a small coffee shop with outdoor dining located on a triangular- shaped parcel between Old Newport Boulevard and Newport Boulevard. Currently, the coffee shop occupies approximately 650 square feet within a building with other retail and office uses. There is an existing 228 square -foot dining patio, and seating is limited under the current use permit to a maximum of 20 seats in the interior and 8 seats on the patio. The applicant proposes to retain the restaurant size and maximum seating as presently authorized, but requests an amendment to the original use permit to allow the sale of beer and wine for on- and off- site consumption (Type 41 license), and to expand the hours of operation from 6:00 Hotties Pizza — UP3622A January 9, 2003 Page 2 a.m. to 2:00 a.m. daily. The applicant proposes to have food and beverage delivery, including the delivery of alcoholic beverages, as an ancillary use to the business. The delivery of food and non - alcoholic beverages is a permitted use and not subject to obtaining this use permit. Current Development: Existing restaurant (coffee shop). I To the north: iO To the east: ca0 To the south: '' L44 To the west: 325 325 Old 'r /328 / N�y`/ Newport O i - 6' r326 323 0 �\ 1320 i �2 31S u °E C 200 400 Feet VICINITY MAP Current Development: Existing restaurant (coffee shop). I To the north: Retail and service commercial. To the east: Retail and service commercial across Old Newport Boulevard. To the south: Parkin lot located in public right-of-way). To the west: Hoag Hospital across Newport Boulevard. J I Hotties Pizza — UP3622A January 9, 2003 Page 3 Background: Use Permit No. 3622 (Billo's Cafe) was approved by the Planning Commission on March 19, 1998. The approval was for a full - service, small -scale eating and drinking establishment (coffee shop) as previously described. Included in the original application was a request for a parking waiver. Subsequently, Outdoor Dining Permit No. 52 was administratively approved allowing the outdoor dining in a patio area adjacent to the main entrance on the south side of the building. Use Permit No. 3622 contained the following conditions: Condition No. 5: No alcoholic beverages shall be sold or served on the project site; Condition No. 6: The hours of operation shall be limited to 6:00 a.m. to 3:00 p.m. and any increase in the hours of operation shall be subject to the approval of an amendment to this use permit. Analysis: The applicant now proposes to modify the operational characteristics of the business from that of a coffee shop with breakfast and lunch service, to a pizza parlor with on -site dining as well as delivery service (the applicant proposes to continue the breakfast service). To that end, the applicant is requesting an amendment of the existing use permit to expand the hours of operation to 2:00 a.m. seven days a week. In addition, applicant is requesting permission to sell beer and wine for on -site consumption as well as for off -site consumption. The applicant proposes to sell beer and wine to customers to take off -site, as well as to deliver beer and wine in conjunction with food delivery. Staff has contacted the California Alcoholic Beverage Control (ABC) and a Type Al license would permit the on- and off -site alcoholic beverage sales as well as delivery sales as proposed by the applicant. General Plan The City's General Plan designates the site as Retail and Service Commercial. Eating and drinking establishments are a permitted use within the RSC General Plan land use category. Therefore, the applicant's request is consistent with the General Plan. Alcoholic Beverage Ordinance (ABO) In accordance with Section 20.89.030A of the ABO, a use permit shall be required for any new alcoholic beverage outlet. Therefore, this staff analysis is required in conjunction with the ABO. The purpose of the ABO Ordinance is to preserve a healthy environment for residents and businesses by establishing a set of consistent standards for the safe operation of alcoholic beverage outlets, while preventing alcohol - related y Hotties Pizza — UP3622A January 9, 2003 Page 4 problems. The ABO requires the Planning Commission to consider the following factors: 1. Whether the use serves public convenience or necessity. 2. The crime rate in the reporting district and adjacent reporting districts as compared to other areas in the City. 3. The number of alcohol licenses per capita in the reporting district and in adjacent reporting districts as compared to the county -wide average. 4. The numbers of alcohol - related calls for service, crimes or arrests in the reporting district and in adjacent reporting districts. 5. The proximity of the alcoholic beverage outlet to residential districts, day care centers, park and recreation facilities, places of religious assembly, and schools. In accordance with the foregoing, and in order to provide the Planning Commission with the necessary data and analysis to make the required findings, each of the factors is discussed as follows: 1. Public Convenience or Necessity. The Police Chief is designated by Council Policy K -7 to be responsible for making an official finding of Public Convenience and Necessity on behalf of the City. The Police Department's report (included as Exhibit No. 2) states that while they "have no serious concerns in regards to the proposed operation," they do have concerns relative to the existing concentration of ABC licenses in the area. Therefore, the Police Department report includes a number of recommended conditions relative to the hours of operation (see discussion below), age of employees including those delivering food and beverage items, sale of alcoholic beverages only in conjunction with food sales, prohibition on entertainment and dancing, and restriction of alcohol consumption to the interior of the building. The Police Department recommendations have been incorporated as Conditions in the draft Resolution of Approval that is included as Exhibit No. 2. Even though the specific operating characteristics of the business are changing, there is no change in the floor area or maximum number of seats and the business will continue to operate as an eating and drinking establishment. The sale of beer and wine in conjunction with food, particularly pizza and similar food items, is typical for that type of establishment and is ancillary to the restaurant use. In addition, while off -site alcoholic sales, including the delivery of beer and wine, can be viewed as ancillary to the food use particularly given the conditions requiring proof of age of customers, age of delivery employees and the requirement that any beverage sales and delivery be permitted only in conjunction with food sales. Therefore, in staff's opinion, the Pubic Convenience or Necessity finding can be made for this amendment request. 2. Crime Rate. Citywide, there were 6,955 crimes reported during calendar year 2001, of which 2,852 were Part One Crimes (serious offenses). The remaining 4,103 Al� 1_ Hotties Pizza — UP3622A January 9, 2003 Page 5 were Part Two Crimes that include alcohol related arrests. The project site, located within the Old Newport Boulevard area, is located within Police Reporting District No. 25. During 2001, the number of Part One Crimes in RD No.25 was 142 and the number of Part Two Crimes was 273. Adjacent Reporting Districts are Nos. 26 and 15. RD No. 26 had 141 Part One and 162 Part Two Crimes; and RD No. 15 had 367 Part One and 912 Part Two Crimes. A map of the Reporting Districts is included in Exhibit No. 2. As noted in the Police Department report, the crimes within the reporting district of the project site are slightly higher than RD No. 26 and are considerably lower than RD No. 15, and are significantly higher than the City -wide average. The reported crimes within RD No. 25 are approximately 97% above the City -wide reporting district average. The business will continue to operate primarily as an eating and drinking establishment with ancillary on -site alcoholic beverage consumption. In addition, a number of conditions have been incorporated in the draft Resolution to ensure that the business not operate as a bar or cocktail lounge. Therefore, in staff's opinion, the finding can be made that the business will not result in an increase in crime rate within the area. 3. Over Concentration. The request will result in one additional on -site alcohol beverage (Type 41) license within RD No. 25. There are a total of 24 active ABC licenses within RD No. 25. The census tract within which the business is located has a higher ratio of liquor licenses (1 license per every 208 persons) when compared with the average ratio for Orange County (1 license per every 590 persons). However, the new Type 41 license will be issued as an ancillary use to the food service, and is typical of the proposed restaurant use and the business will remain small -scale in terms of floor area and maximum number of seats. 4. Alcohol Related Crimes. The Police Department has provided statistics for driving under the influence and plain drunk arrests. There were 71 driving under the influence arrests and 61 plain drunk arrests within RD No. 25 in 2001. The percentage of alcohol related arrests within RD No. 25 is 68.8 %. City -wide, alcohol related arrests account for 48.8% of all arrests made. The alcohol - related arrest rate in the two adjacent reporting districts is 58.5% for RD No. 26 and 68.7% for RD No. 15. (A map of the reporting districts is included in Exhibit No. 2.) The rate within RD No. 25, within which the project is located, is higher than the city -wide average and also higher than the adjacent RD No.26, but is about the same as the adjacent RD No. 15. However, the use classification is not being changed, and the business will continue to operate as an eating and drinking establishment. Given the conditions recommended to be placed on the approval as well as the limited nature of the business in terms of floor area and maximum seating and the fact that the business is not a bar or cocktail lounge and no hard alcohol is served, it is staff's opinion that the requested ABO is not likely to result in additional alcohol - related crimes in the area. 5. Adjacent Uses. The site is located within the Old Newport Boulevard area that is predominantly commercial. The project site is not adjacent to sensitive land uses, and there are no day care centers, schools, or park and recreation facilities in the vicinity of as Hotties Pizza — UP3622A January 9, 2003 Page 6 the project site. The nearest residential uses are located approximately 200 feet to the east across Old Newport Boulevard and behind the commercial buildings located on the east side of that street. Hoag Hospital is located to the west, but is separated by the 180 -foot wide Newport Boulevard right -of -way as well as an extensive slope embankment. The location of the use is not likely to create any land use conflicts. Hours of Operation The applicant's request includes an amendment to the operating hours. The existing conditions for the use permit include the hours of operation limited to 6:00 a.m. to 3:00 p.m. daily. Applicant is proposing to change the type of restaurant from a coffee shop to a pizza parlor, and is therefore requesting that the hours be expanded to 2:00 a.m. seven days a week. However, the Police Department has recommended that the hours of operation be limited to 6:00 a.m. to 12:00 midnight, and that the patio be closed at 10:00 p.m.; a condition (No. 14) relating to operating hours has been included in accordance with the Police Department recommendation. Parking The original approval of Use Permit No. 3622 included a parking waiver. The site is nonconforming in that the number of off - street parking spaces for the entire commercial building (a total of 12 spaces are provided) does not meet the current Code requirements. The parking waiver was granted for the original use permit on the basis that a public parking lot is provided adjacent to the property to the south, and an encroachment permit has been executed between the property owner and the City for the use of parking spaces within that lot. This tenant is allocated 4 parking spaces. Even though the applicant is proposing to change the nature of the restaurant use and the hours of operation, the size of the use in terms of floor area and maximum seating is not changing, and the required parking does not increase. Therefore, in staff's opinion, the parking waiver as originally granted under UP No. 3622 is acceptable, and the public parking provided in the adjacent parking lot should remain adequate to serve the use. Outdoor Dining An Outdoor Dining Permit (No. 52) was administratively approved by staff on December 22, 1998. That permit limits the outdoor dining to eight seats in an area of approximately 228 square feet located at the south end of the building and adjacent to the main entrance. The applicant has requested that the sale of beer and wine for on- site consumption be allowed in the patio area, and he proposes to modify the site to have the main entrance to the east side of the building, and to provide the necessary barricades around the patio as required by ABC. The Police Department report has expressed concern relative to the patio's proximity to the parking lot and the hours of operation. Therefore, the Police Department recommends that alcoholic beverage Hotties Pizza — UP3622A January 9, 2003 Page 7 consumption be limited to the interior of the building only, and that the patio dining be closed at 10:00 p.m. Conditions (Nos. 13 and 14 respectively) have been included in the draft Resolution in accordance with the Police Department recommendations. Age Restrictions The Police Department and ABC have expressed a concern relative to the minimum age of employees serving alcohol as well as employees delivering alcoholic beverages in conjunction with the food deliveries. In addition, there was a concern expressed by both agencies relative to the need for customers having alcoholic beverages delivered to off -site locations to prove that they are at least 21 years of age. The applicant has stated an intent to only hire employees that are 21 years and older. Conditions (Nos. 30 and 31) have been included in the draft Resolution requiring that all employees be a minimum of 21 years of age, and requiring proof of age by customers for off -site deliveries of any alcoholic beverages. Environmental Review: This project has been reviewed, and it has been determined that it is categorically exempt from the requirements of the California Environmental Quality Act under Class 1 (Minor Alteration of Existing Structures). Public Notice: Notice of this hearing was published in the Daily Pilot with the agenda, mailed to property owners within 300 feet of the property and posted at the site a minimum of 10 days in advance of this hearing consistent with the Municipal Code. Additionally, the item appeared upon the agenda for this meeting, which was posted at City Hall and on the city website. Alternatives: 1. The Commission may determine that the requested modifications to the original use permit would adversely impact the area, in which case, it would be necessary to deny the amendment. 2. The Commission also has the option to approve a modified project, in which case staff requests that the Commission offer revised or new findings and conditions. CONCLUSION: In summary, staff believes that the changes requested by the applicant will not adversely impact the site or surrounding areas. The draft resolution has been conditioned to require that any alcoholic sales, including those for on- and off -site P1 r� �r Hotties Pizza — UP3622A January 9, 2003 Page 8 consumption as well as any delivery sales, be in conjunction with food sales. If the Planning Commission agrees with this conclusion, it would be appropriate for the Planning Commission to adopt the draft resolution of approval. Prepared by: WILLIAM CUNNINGHAM Contract Planner Submitted by: PATRICIA L. TEMPLE Planning Director Li Exhibits pis. fimsliqla &46 80 91919 .8.1, 2. Police Department report 3. Applicant's letter of project description 4. Project plans EXHIBIT 2 POLICE DEPARTMENT REPORT m City of Newport Beach Police Department Memorandum December 12, 2002 TO: Bill Cunningham, Staff Planner FROM: CSO Susan Seviane SUBJECT: Hottie's Pizza At your request our office has reviewed the project request for Hottie's Pizza, located at 325 Old Newport Blvd., Newport Beach, CA 92663. The applicant is requesting to upgrade the existing Use Permit to: 1) expand the hours from 3:00 pm to 2:00 am daily; 2) allow food delivery; and 3) allow the sale of alcoholic beverages for both on -site and otf -site consumption (Type 41 license). The applicant, Ms. Joan Burton, provided the details concerning the proposed operation. While the main feature is a pizza parlor, they would like to include beer and wine with the delivery orders and to sell beer and 1vine with to take out orders. The applicant indicated her plan is to only utilize employees at least 21 years of age for such deliveries and related transactions. Ms. Burton stated they plan on sen-ing breakfast, lunch, and dinner. Future plans could add catering services. Our understanding is the occupancy is 60 persons (the plan we reviewed with this application shows 20 seats within the building). No additions or changes to square footage planned at this time. The applicant wants to provide recorded music inside and out. While we have no serious concerns in regards to the proposed operation, we believe there is a greater policv /land use issue involved in the approval process for intensifying the alcohol usage in this area of the community. As a result, it is difficult for the Police Department to endorse the proposed intensified Use Permit modification, especially considering the existing concentration of ABC licenses in the area. Accordingly, we believe the decision more appropriately should be left to the Planning Commission and /or City_ Council based On the said impacts. For police services information refer to the attached report by Crime Analyst Paul Salenko. Applicant History: The applicant's business partner, Susan D'Alessio, previously operated a cafe at the same location. _h• Signs and Displays There shall be no exterior advertising or signs 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 or signs that are clearly visible to the exterior shall constitute a violation of this condition. Hours of Operation: The recommended hours of operation are 6:00 a.m. to midnight daily_. The Police Department recommends a 10:00 p.m. closing time for the patio in order to minimize potential noise - related impacts for the adjacent residential area. Preventive Design: If an outdoor patio is approved, conditions should be developed to mitigate any potential noise generated by patrons that could disturb residents in the area. Additionally, ABC will require some type of fence and signage to delineate any patio areas approved for the consumption of alcoholic beverages. Security: Ms. Burton states there will be an alarm system. Employee Training: Require all owners, managers and employees serving, delivering and /or selling alcoholic beverages to undergo and successfully complete a certified training program in responsible methods and skills for serving and selling alcoholic beverages. Additional Comments: For the purposes of this application, staff may also want to consider establishing conditions that would require a Special Event Permit. A Special Event Permit may be required for anv event or promotional activity outside the normal operational characteristics of the proposed operation. For example, events likely to attract large crowds, or events for which an admission fee is charged, those that include any form of party or contract promoters, or any other activities as specified in the Newport Beach Municipal Code to require such permits. It mar also be appropriate to establish conditions that would address possible future uses in the event this business evolves towards a traditional bar -type establishment. In addition the Police Department has determined the following condition would be appropriate for the Conditional Use Permit for the business: 1. Concerning telephone orders for the delivery of alcoholic beverages- the applicant shall not deliver alcoholic beverages pursuant to orders received for such alcoholic beverage by telephone unless, upon delivery, the recipient is able to furnish proof of age and identity to indicate that he or she is 21 vears of age. The applicant shall maintain records of such transactions. a� I Approval does not permit the premises to operate as a bar, tavern, cocktail lounge or nightclub as defined by the Municipal Code, unless the Planning Commission first approves a Use Permit. 3. No alcoholic beverages shall be consumed on any property adjacent to the licensed premises under the control of the license. 4. No "happy hour" type of reduced price alcoholic beverage promotion shall be allowed except when served in conjunction with food ordered from the full service menu. 3. The applicant shall not share any profits, or pay any percentage or commission to a promoter or any other person, based upon moneys collected as a door charge, cover charge, or any other form of admission charge, including minimum drink orders o_- the sale of drinks. b. The (.luarterly gross sales of alcoholic beverages shall not exceed the gross sales of tool during the same period. The applicant shall at all time maintain records, which reflect separately the gross sale of food and the gross sales of alcoholic beverages of the licensed business. Said records shall be kept no less frequently than on a L;uarterl% basis and shall be made available on demand. 7. There shall be no on -site radio, television, video, film or other electronic media broadcasts, including recordings for the broadcast at a later time, which include the service of alcoholic beverages, without first obtaining an approved Special Event Permit as issued by the City of Newport Beach. 8. At all times when the premises is open for business, the sale of alcoholic beverages shall be made only in conjunction with the sales of food to the person ordering the beverage. cJ. There shall be no dancing allowed on the premises. 10. There shall be no live entertainment of any type on the premises at any time. 11. Sales and consumption of alcoholic beverages will be restricted to and within the confines of the building portion of the premises and sales or delivery of alcoholic beverages through any pass -out window is prohibited. 12. Concerning telephone orders for the delivery of alcoholic beverages- such orders for beer shall be sold in quantities of six per sale in the original packaging. '0 13. While state laws permit persons under the age of 21 years to sell, serve and deliver alcoholic beverages within the course of employment, and since the applicant has informed the Police Department that she intends to only employ persons 21 years of age or older to perform such duties, it may be appropriate require that age limit in the CUP. This may help to prevent potential problems with the sales, service and delivery of alcoholic beverages. Assuming the issues and recommended conditions identified in this report are addressed by the CUP, the Police Department has no objection to the operation as described by the applicant and, upon approval of the CUP, will condition the ABC license as necessary to maintain the health, safety and welfare of the community If you may have any questions, please do not hesitate to contact me at (949) 644 -3705. Susan Seviane, Community Service Officer Vice and Intelligence Unit M City of Newport Beach Police Department Memorandum November 25, 2002 TO: Bill Cunningham, Staff Planner FROM: Paul Salenko, Crime Analyst SUBJECT: Alcohol Related Statistics At your request, our office has reviewed police services data for the Hotties Pizza at 325 Old Newport Blvd. This area encompasses our reporting district (RD) number 25 as well as part of Census Tract 634. This report reflects City of Newport Beach data for calendar year 2001, which is the most curAt data available. Calls for Service hlformation City wide there were 55,291 calls for police services during this time, of which 2,554 were in Rl 25. A "call for service" is, any contact of the police department by a citizen which results in the dispatching of a unit or causes the contacted employee to take some sort of action, such as criminal investigations, alarm responses, traffic accidents, parking problems, and animal control calls, etc. Crime Information There were 6,955 crimes reported to the Newport Beach Police Department during this period. Of this total, 2.552 were Part One Crimes. Part One crimes are the eight most serious crimes (Homicide, forcible Rape, Robbery, Aggravated Assault, Burglary, Larceny- theft, Auto Theft and Arson) as defined by the FBI in the uniform Crime Reports. The remaining 4,103) were Part Two crimes. The Part One crime rate for the entire city during this same period was 3,770.24 per 100,000 people. The national Part One crime rate was 4,124.0 per 100,000 people. Crimes RD 25 Newport Beach California* National* Part 1 142 2,852 1,266,714 11,605,751 Part 273 4,103 N/A N/A Part 1Crime Rate 5,130.06 3,77024 3,739.7 4,124.0 The number of active ABC licenses in this RD is 24** This reporting district had a total of 415 reported crimes as compared to a City wide reporting district average of 211 reported crimes. This reporting district is 204 crimes or 96.91 °0 above the City wide reporting district average. This location is within an area \there the number of crimes is at least 75°0 higher than the average of all reporting districts in the Citv as outlined in the City Council "K -7" policy. J Arrest Information There were 71 DUI arrests and 61 Plain Drunk arrests in this area during this same period as compared to 1,769 for the entire city. This RD amounts to 7.5 % of the DUI /Drunk arrests made in the entire City. According to a recent national study by the Department of Justice, more than 36% of adult offenders convicted of crimes in 1996 had been drinking at the time of their arrest. Arrests RD 25 Newport Beach California* National* (DUI /Drunk) 132 1,769 N/A N/A All Arrests 192 3,629 1,408,904 9,123,428 Additional Information The Alcoholic Beverage Outlets ordnance states that the Planning Commission shall consider the crime rate in the adjacent reporting districts The two adjacent reporting districts you requested are RD 26 and RD 15. Crimes RD 26 RD 15 Part 1 141 367 Part 2 162 912 Crime Rate 5,318.75 12,981.96 Arrests (DUI /Drunk) 69 613 All Arrests 118 892 Calls For Service 2,193 5,658 Number of active ABC licenses 12 ** 70 ** Note: It is important to remember that when dealing with small numbers any change greatly affects any percentage changes. The population figure used for the Crime Rate was 75,645. *These numbers are from the 2000 Uniform Crime Reports, which is the most recent edition. * *The number of active ABC licenses is the total of all types of licenses kno`,vn to the police department as of the date of this document. If you are in need of any further assistance, please contact me at (949) 644 -3791. Paul Salenko Crime Analysis Unit 3-2- Reporting Districts Ix A Newport Beach Police Department Effective famlary 1. 2002 N I TV Sv.-iR r ,INV 32 EXHIBIT 3 APPLICANT'S LETTER 3 `� Hotties 325 Old Newport Blvd Newport Beach, CA 92663 November 18, 2002 William Cunningham City of Newport Beach RE: Use Permit for Hotties Pizza, 325 Old Newport Blvd, Newport Beach Dear Mr. Cunningham: On August 23, 2002, we applied for a use permit for the above named business. We had a previous use permit numbered 3622. We later received a letter citing 2 items necessary to complete our new permit application. The first issue required us to submit revised plans showing the outdoor dining space we intended to use. The second issue addressed our request to sell and deliver wine but was stated on the permit request as follows "liquor delivery & service (potentially) ". You asked for clarification. What we are requesting is as follows: On site sales and services of beer & wine only, indoors and on our outside dining patio. Delivery of beer & wine with delivery of our food. Sales of beer and wine with take out orders. All beer and wine sales okayed during all hours that Hotties is open as requested on new permit application. We are currently in the process of getting a beer and wine license through the ABC. If you have any additional questions, please call me at 949/873 -1002 extension 346. Thank you. 212'd �j J� 0dW/W00'WHS Wd62:2L 20, 9L A0W T < V 2 � x r •F�„� 3 V ' Z fpp � N V O� x V -v -t t Qa y rfr it I J G ❑ Z ❑ O� Z 2 e V 2 C ❑ MM {1 W QI �.a n 3jy � Jn t/} .n� v sit 9i III r +d d i r A 3,Y I�;L #Yj �^ 1 ➢'�*�lli I� 1 v sit 9i III r +d d i r A 3,Y ATTACHMENT D DRAFT CITY COUNCIL RESOLUTION RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH APPROVING AMENDMENT TO USE PERMIT NO. 3622 (PA2002 -172) FOR PROPERTY LOCATED AT 325 OLD NEWPORT BOULEVARD THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH HEREBY FINDS, RESOLVES AND ORDERS AS FOLLOWS: Section 1. An application was filed by Dennis D'Alessio with respect to property located at 325 Old Newport Boulevard and legally described as Lot 24 of Tract 27, requesting approval of Amendment to Use Permit No. 3622 to authorize a Type 41 ABC license for on -site and off -site consumption of alcoholic beverages pursuant to the Alcoholic Beverage Outlet Ordinance (ABO), expansion of hours of operation, and delivery of food and beverages. The site is designated Retail & Service Commercial by both the General Plan Land Use Element and Zoning Code. Section 2. The City of Newport Beach Planning Commission held a public hearing on January 9, 2003 in the City Hall Council Chambers, 3300 Newport Boulevard, Newport Beach, California. A notice of time, place and purpose of the aforesaid meeting was given. Evidence, both written and oral, was presented to and considered by the Planning Commission at this meeting. The Planning Commission approved the use permit based on the findings and conditions of approval within Planning Commission Resolution No. 1585 dated January 9, 2003. Section 3. The Newport Beach City Council held a public hearing on January 28, 2003 in the City Hall Council Chambers, 3300 Newport Boulevard, Newport Beach, California. A notice of time, place and purpose of the aforesaid meeting was given. Evidence, both written and oral, was presented to and considered by the City Council at this meeting. The City Council approved the use permit based on the conditions of approval included within this resolution as Exhibit "A ". Section 4. The City Council finds as follows: 1, The eating and drinking establishment with accessory on -site and off -site consumption (without delivery) of beer and wine in conjunction with food sales, and with the proposed conditions under which it would be operated or maintained, is consistent with the General Plan and the purpose of the RSC district in which the site is located; will not be detrimental to the public health, safety, peace, morals, comfort, or welfare of persons residing or working in or adjacent to the neighborhood of such use; and will not be detrimental to the properties or improvements in the vicinity or to the general welfare of the city. The use has been conditioned in such a manner to minimize the impacts associated with the sale of alcoholic beverages. The plans, as conditioned, meet the design and development standards for eating and drinking establishments including the accessory sales of beer and wine. 2. The operational characteristics of the proposed use, including the hours of operation, are consistent with Municipal Code requirements. Any change in the operational City of Newport Beach City Council Resolution No. Paqe 2 of 7 characteristics, including a change in the hours of operation, would require an amendment to the Use Permit, reviewed by the Planning Commission. 3. The proposed project is not consistent with the purpose and intent of Chapter 20.89 of the Municipal Code (Alcoholic Beverage Outlets Ordinance) for the following reason: a. The proposed project includes delivery of alcoholic beverages by restaurant employees which is difficult to regulate and monitor and may lead alcohol sales to persons under the legal drinking age which is detrimental to the public health, safety, peace, morals, comfort, or welfare of persons residing or working within the city. 4. The proposed project is consistent with the purpose and intent of Chapter 20.89 of the Municipal Code (Alcoholic Beverage Outlets Ordinance) for the following reasons: a. The convenience of the public can be served by the sale of desired beverages in conjunction with a full - service, sit -down restaurant that is complementary to surrounding uses within the Old Newport Boulevard area. Alcohol service is typical and expected by the public in a full - service restaurant setting. b. The crime rate in the police reporting district and adjacent reporting districts is not likely to increase as a result of the proposed use provided that the use is operated in accordance with all conditions of approval as a restaurant as opposed to a bar or nightclub, with the on -site consumption of alcohol incidental to and subordinate to food sales and that off -site consumption of alcohol is accessory to the sale of food items to persons of legal drinking age. C. The number of alcohol licenses within the report district and adjacent reporting districts is higher than the County -wide average. This is due to the nature of the land uses in the district and a large number of eating and drinking establishments. The addition of one Type 41 license will not result in a substantial increase in licenses within the report district. d. The percentage of alcohol - related arrests in the police reporting district in which the project is proposed is higher than the percentage citywide. However, on -site consumption is not expected to increase alcoholic related crime in that the use is incidental to the use of the site as an eating and drinking establishment. e. There are no sensitive uses such as residences, day care centers, schools, or park and recreation facilities in the vicinity of the project site. 5. The project has been reviewed, and it qualifies for a categorical exemption pursuant to the California Environmental Quality Act under Class 1 (Minor alteration of existing structures). City of Newport Beach City Council Resolution No. Pape 3 of 7 Section 5. Based on the aforementioned findings, the City Council hereby approves Amendment to Use Permit No. 3622, subject to the Conditions set forth in Exhibit "A." This resolution shall take effect immediately upon adoption. Passed and adopted by the City Council of Newport Beach at a regular meeting held on the 28th day of January 2003 by the following vote to wit: AYES, COUNCIL MEMBERS NOES, COUNCIL MEMBERS ABSENT, COUNCIL MEMBERS MAYOR ATTEST: CITY CLERK q,)— City of Newport Beach City Council Resolution No. Pape 4 of 7 EXHIBIT "A" CONDITIONS OF APPROVAL AMENDMENT TO USE PERMIT NO. 3622 1. The development shall be in substantial conformance with the floor plan approved by the Planning Commission on March 19, 1998. 2. This Amendment to a Use Permit for an alcoholic beverage outlet granted in accordance with the terms of this chapter (Chapter 20.89 of the Newport Beach Municipal Code) shall expire within 12 months from the date of approval unless a license has been issued or transferred by the California State Department of Alcoholic Beverage Control prior to the expiration date. 3. Any change in operational characteristics, hours of operation, expansion in area, or operation characteristics, or other modification to the floor plan, shall require an amendment to this Use Permit or the processing of a new Use Permit. 4. Should this business be sold or otherwise come under different ownership, any future owners or assignees shall be notified of the conditions of this approval by either the current business owner, property owner or the leasing agent. Future owners, operators or assignees shall submit, within 30 days of transfer or sale of the business or alcohol license, a letter to the Planning Department acknowledging their receipt and acceptance of the limitations and conditions of approval of this Use Permit. 5. The applicant shall comply with all federal, state, and local laws. Material violation of any of those laws in connection with the use will be cause for revocation of this permit. 6. This use permit may be reviewed, modified or revoked by the Planning Commission or City Council should they determine that the proposed uses or conditions under which it is being operated or maintained is detrimental to the public health, welfare or materially injurious to property or improvements in the vicinity or if the property is operated or maintained so as to constitute a public nuisance. 7. Trash generated by the business shall be screened from view from adjoining properties except when placed for pick -up by refuse collection agencies. Trash receptacles for patrons shall be conveniently located both inside and outside the proposed facility. 8. No outdoor loudspeaker or paging system shall be permitted in conjunction with the operation. 9. All signs shall conform to the provisions of Chapter 20.67 of the Municipal Code. No temporary "sandwich" signs or similar temporary signs shall be permitted, either on -site or off -site, to advertise the restaurant. 10. The sale of beer and wine in conjunction with the eating and drinking establishment shall be subordinate to the sale of other food and beverages. Subordinate is defined as less ��J City of Newport Beach City Council Resolution No. _ Page 5 of 7 than 35 %. The sale beer and wine of for off -site consumption, iFieluding eff ^i- �te deliveFies, shall be in conjunction with the sale of food items only. Delivery of alcoholic beverages by restaurant employees is not permitted. The sale of beer and wine for off -site consumption, inel,:d;^^ ^ff site deliveFies, shall not exceed 20% of the total sales of beer and wine. The applicant or operator shall maintain adequate records to determine compliance with this condition and shall provide the City said records when requested. The time period for the purposes of conducting this review shall be quarterly. Gross receipts shall be reviewed by the City for purposes of compliance with the requirements of the Zoning Code and Use Permit if the use is believed to be operating in non- compliance. If the sales percentages review finds that the applicant is not in compliance, this application shall be brought forward to the Planning Commission for review. 11. Approval does not permit the premises to operate as a bar, tavern, cocktail lounge or night club as defined by the Municipal Code, unless the Planning Commission first approves a Use Permit. 12.The interior area authorized for on -site alcoholic beverage consumption in conjunction with a Type 41 license shall be limited to 650 sq. ft. as delineated on the approved floor plans with a maximum of 20 seats. On -site consumption of alcoholic beverages may be allowed in the outdoor patio dining area and the total number of seats permitted in the outdoor area shall be limited to a maximum of eight. Signs as required by the Department of Alcoholic Beverage Control (ABC) shall be displayed at all times. The applicant shall provide and maintain necessary barricades around the patio as required by ABC. Substantial changes to the floor plans shall require prior approval by the Planning Commission. 13. Hours of operation shall be from 6:00 AM to 12:00 midnight daily, and the patio outside dining area shall be from 6:00 AM to 10:00 PM daily. 14. Live entertainment and dancing shall be prohibited at all times. 15.A Special Events Permit is required for any event or promotional activity outside the normal operational characteristics of the business or any other activities as specified in the. Newport Beach Municipal Code to require such special events permit. 16.The exterior of the alcoholic beverage outlet shall be maintained free of litter and graffiti at all times. The owner or operator shall provide for daily removal of trash, litter debris and graffiti from the premises and on all abutting sidewalks within 20 feet of the premises. 17.The alcoholic beverage outlet operator shall take reasonable steps to discourage and correct objectionable conditions that constitute a nuisance in parking areas, sidewalks and areas surrounding the alcoholic beverage outlet and adjacent properties during business hours, if directly related to the patrons of the subject alcoholic beverage outlet. If the operator fails to discourage or correct nuisances, the Planning Commission may review, modify or revoke this Use Permit in accordance with Chapter 20.96 of the Zoning Code. ql City of Newport Beach City Council Resolution No. Paae 6 of 7 18.Alcoholic beverage sale from drive -up orwalk -up windows shall be prohibited 19.Any event or activity staged by an outside promoter or entity, where the business owner or his employees or representatives share in any profits, or pay any percentage or commission to a promoter or any other person based upon money collected as a door charge, cover charge or any other form of admission charge, including minimum drink orders or sale of drinks is prohibited. 20. Loitering, open container, and other signs specified by the Alcoholic Beverage Control Act shall be posted as required by the State Department of ABC. 21.All owners, managers and employees selling alcoholic beverages shall undergo and successfully complete a certified training program in responsible methods and skills for selling alcoholic beverages. The certified program must meet the standards of the California Coordinating Council on Responsible Beverage Service or other certifying /licensing body, which the State may designate. The establishment shall comply with the requirements of this section within 180 days of the issuance of the certificate of occupancy. Records of each owner's, manager's and employee's successful completion of the required certified training program shall be maintained on the premises and shall be presented upon request by a representative of the City of Newport Beach. 22.The applicant is required to obtain all applicable permits from the City Building and Fire Departments. The construction plans must comply with the most recent, City- adopted version of the California Building Code. Adequate access and exiting must be provided in accordance with the Building Code. 23.The facility and related off - street parking shall conform to the requirements of the Uniform Building Code. The project shall comply with State Disabled Access requirements. 24. Where grease may be introduced into the drainage systems, grease interceptors shall be installed on all fixtures as required by the Uniform Plumbing Code, unless otherwise approved by the Building Department and the Utilities Department. 25. Health Department approval is required for any changes to the kitchen and other portions of the building that require a Building Permit. 26. Handicapped assessable public restrooms are required either within the restaurant or within the building complex. The restrooms must be in compliance with the Uniform Plumbing Code and all applicable Uniform Building Code requirements. 27. Delivery vehicles shall not park within the public right -of -way of Old Newport Boulevard. 28.Upon evidence that noise generated by the project exceeds the noise standards established by Chapter 20.26 (Community Noise Control) of the Municipal Code, the Planning Director may require that the applicant or successor retain a qualified engineer specializing in noise /acoustics to monitor the sound generated by the City of Newport Beach City Council Resolution No. Pape 7 of 7 restaurant facility to develop a set of corrective measures necessary in order to insure compliance. 29. Age of all employees serving or selling alcohol, ineludigg deliveFy engpleyees shall be a minimum of 21 years. 30.Proof of age of any off -site customer shall be required for any sales of beer and wine and said customer shall be a minimum of 21 years in age. 31.The applicant shall continue to maintain an encroachment permit and agreement with the City providing for a minimum of 4 parking spaces located on the City right -of -way property contiguous to and south of the property. 32.The operator of the restaurant facility shall be responsible for the control of noise generated by the subject facility. The noise generated by the proposed use shall comply with the provisions of Chapter 10.26 of the Newport Beach Municipal Code. The maximum noise shall be limited to no more than depicted below for the specified time periods unless the ambient noise level is higher: f, Between the hours of Between the hours of 7:OOAM and 10:OOPM and 10:OOPM 7:OOAM Location Interior Exterior Interior Exterior Residential Property 45dBA 55dBA 40dBA 50dBA Residential Property located within 100 feet of a commercial 45dBA 60dBA 45dBA 50dBA property Mixed Use Property 45dBA 60dBA 45dBA 50dBA Commercial Property N/A 65dBA N/A 60dBA f,