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97-064RESOLUTION NO. 97R -64 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ADOPTING THE FINDINGS OF FACT AND RECOMMENDATIONS OF HEARING OFFICER ADDING NEW CONDITIONS OF APPROVAL OF CONDITIONAL USE PERMIT NO. 1594 AND CONDITIONAL USE PERMIT NO. 3421. WHEREAS, Conditional Use Permit No. 1594 to permit a restaurant with on- premises sale and consumption of alcohol with a waiver of minimum structural setback at 500 Brookhurst Street, Anaheim, was granted by the Anaheim Planning Commission (the "Planning Commission on January 5, 1976, by Planning Commission Resolution No. PC 76 -5; and WHEREAS, on December 23, 1996, Andrew Lui, property owner, and Everado Godoy, holder, user and /or permittee, were given notice that the Planning Commission's public hearing to consider revocation or modification of Conditional Use Permit Nos. 1594 and 3421 was rescheduled to February 19, 1997; and WHEREAS, on February 19, 1997, the Planning Commission held a public hearing to consider the revocation or modification of Conditional Use Permit Nos. 1594 and 3421; and WHEREAS, following the public hearing, the conditions of approval for Conditional Use Permit No. 1594 were amended and the conditions of approval for Conditional Use Permit No. 3421 were further amended by the Planning Commission by Planning Commission Resolution Nos. PC97 -16 and PC97 -17, respectively, establishing a neew expiration date of August 19, 1997 for both Conditional Use Permits; and WHEREAS, On February 20, 1997, John B. Casoria, attorney for La Estrella Restaurant, filed an appeal of the Planning Commission decisions with the City Clerk of the City of Anaheim; and WHEREAS, on March 11, 1997, the City Council referred the appeal to a hearing officer as permitted by Anaheim Municipal Code Section 1.12.110; and WHEREAS, on April 19, 1997, the City Clerk of the City of Anaheim gave Notice of a Public Hearing before a Hearing Officer for the subject appeal to be held on April 22, 1997; and WHEREAS, on April 22, 1997, a public hearing on the appeal of La Estrella was duly held before Victor J. Kaleta, Hearing Officer. The City was represented by Deborah P. Knefel, Deputy City Attorney, and the Appellant was represented by Leonard Polyakov, Rick Blake and Associates, with testimony received from John Poole, Code Enforcement Manager, and Everardo' Godoy, Jr., Appellant; and WHEREAS, substantial written evidence was submitted by both sides and received by the Hearing Officer; and WHEREAS, the Hearing Officer, having considered the exhibits received at the hearing, arguments and proposed findings of fact and recommendations of counsel, has prepared Findings of Fact and Recommendations of Hearing Officer to Anaheim City Council pursuant to Anaheim Municipal Code Section 1.12.110 (the "Findings of Fact and WHEREAS, on May 12th, 1997, the City received the Administrative Record and the proposed Findings of Fact submitted by the Hearing Officer; and WHEREAS, on May 20th, 1997, the City Council did consider the administrative record and the Findings of Fact of the Hearing Officer. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Anaheim that the City Council hereby adopts those certain Findings of Fact of the hearing officer attached hereto, marked Exhibit A, incorporated herein by this reference as if set forth in full. BE IT FURTHER RESOLVED, based on the grounds set forth in the Findings of Fact, that the City Council does hereby modify Conditional Use Permit Nos. 1594 and 3421 as follows: 1. Modify Condition of Approval No. 20 of Conditional Use Permit No. 1594 to read as follows: "20. That subject use permit is hereby granted for a period of six months, thus expiring in six months, with said six month period to commence on the date of the City Council's decision to adopt the Hearing Officer's recommendations. A progress report shall be given to the Planning Commission as a Report and Recommendations item, pertaining to compliance with conditions of approval and all rules and regulations, four months from the date of the City Council's decision. The Planning Commission may, at that time readvertise the subject conditional use permit for revocation or modification." 2. Modify Conditions of Approval Nos. 29, 30, and 31 of Conditional Use Permit No. 3421 to read as follows: "29. That sales and service of alcoholic beverages shall cease at 1 a.m. or closing time whichever occurs first." 2 "30. That persons under the age of twenty one (21) shall be prohibited in the bar /public dance hall area of the business when the business is open to the public, provided however, the business shall not be deemed to be open to the public when it is being used for private parties such as receptions or banquets." "31. That subject use permit is hereby granted for a period of six months, thus expiring in six months, with said six month period to commence on the date of the City Council's decision to adopt the Hearing Officer's recommendations. A progress report shall be given to the Planning Commission as a Report and Recommendations item, pertaining to compliance with conditions of approval and all rules and regulation, four months from the date of the City council's decision. The Planning commission may, at that time readvertise the subject conditional use permit for revocation or modification." BE IT FURTHER RESOLVED that the time within which rehearings must be sought is governed by the provisions of Section 1.12.100 of the Anaheim Municipal Code and the time within which judicial review of final decisions must be sought is governed by the provisions of Section 1094.6 of the Code of Civil Procedure and Anaheim City Council Resolution No. 79R -524. THE FOREGOING RESOLUTION is approved and adopted by the City Council of the City of Anaheim this 20th day of May, 1997. ATTEST: CITY CLERK OF THE CITY OF ANAHEIM 0023061.01 3 STATE OF CALIFORNIA COUNTY OF ORANGE ss. CITY OF ANAHEIM I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that the foregoing Resolution No. 97R -64 was introduced and adopted at a regular meeting provided by law, of the Anaheim City Council held on the 20th day of May, 1997, by the following vote of the members thereof: AYES: MAYOR /COUNCIL MEMBERS: McCracken, Tait, Zemel, Lopez, Daly NOES: MAYOR /COUNCIL MEMBERS: None ABSENT: MAYOR /COUNCIL MEMBERS: None AND I FURTHER CERTIFY that the Mayor of the City of Anaheim signed said Resolution No. 97R-64 on the 20th day of May, 1997. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Anaheim this 20th day of May, 1997. (SEAL) CITY CLERK OF THE CITY OF ANAHEIM I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that the foregoing is the original of Resolution No. 97R -64 was duly passed and adopted by the City Council of the City of Anaheim on May 20, 1997. CITY CLERK OF THE CITY OF ANAHEIM IN RE: MODIFICATION OF CONDITIONAL USE PERMIT NOS. 1594 AND 3421 UNDER WHICH LA ESTRELLA RESTAURANT OPERATES This matter came on for hearing on April 22, 1997, on the appeal of La Estrella Restaurant from a decision of the Anaheim Planning Commission to modify Conditional Use Permit No. 1594, to permit a restaurant with on- premises sale and consumption of alcohol with a waiver of minimum structural setback, and Conditional Use Permit No. 3421, to permit a public dance hall, both for a period of six months, to expire August 19, 1997, relative to La Estrella Restaurant at 500 Brookhurst Street, Anaheim. Leonard Polyakov appeared on behalf of Appellant and Deborah P. Knefel, Deputy City Attorney, appeared on behalf of the City of Anaheim. The Hearing Officer, Victor J. Kaleta, having considered the exhibits received at the hearing and arguments and stipulations of the parties, finds as follows: BACKGROUND FINDINGS FINDINGS OF FACT AND RECOMMENDATIONS OF HEARING OFFICER TO ANAHEIM CITY COUNCIL PURSUANT TO A.M.C. SECTION 1.12.110 1. Conditional Use Permit No. 1594 to permit a restaurant with on- premises sale and consumption of alcohol with a waiver of minimum structural setback at 500 Brookhurst Street, Anaheim, was granted by the Anaheim Planning Commission (the "Planning Commission") on January 5, 1976, by Planning Commission Resolution No. PC76 -5. (City Exhibit 5c.) 2. Conditional Use Permit No. 3421 to permit a public dance hall with a waiver of minimum number of parking spaces was granted by the Planning Commission on June 17, 1991, by Planning Commission Resolution No. PC91 -89. The expiration date was set for one year, June 17, 1992. (City Exhibit 9a.) 3. The legal description in Planning Commission Resolution No. PC91 -89 was amended by Planning Commission Resolution No. PC91 -130 on August 12, 1991. (City Exhibit 9b.) 4. The conditions of approval for Conditional Use Permit No. 3421 were amended by the Planning Commission on June 15, 1992, by Planning Commission Resolution No. PC92 -75. A new expiration date of June 15, 1994, was established. (City Exhibit 9c.) Page 1 5. The conditions of approval for Conditional Use Permit No. 3421 were further amended by the Planning Commission on June 26, 1995, by Planning Commission Resolution No. PC95 -72. A new expiration date of June 26, 1998, was established. (City Exhibit 9d.) 6. The conditions of approval for Conditional Use Permit No. 3421 were further amended by the Anaheim City Council "the ''City Council") on August 22, 1995, by City Council Resolution No. 95R -158. A new expiration date of August 22, 1998, was established. (City Exhibit 5b.) 7. On November 13, 1996, the Planning Commission, at the request of the Anaheim Police Department, requested that Conditional Use Permit Nos. 1594 and 3421 be set for a public hearing to consider revocation or modification. (City Exhibit 5a, page 2.) 8. On November 21, 1996, Andrew Lui, property owner, and Everado Godoy, holder, user and /or permittee, were given notice of the date, time and place of the Planning Commission's proposed January 6, 1997, public hearing to consider revocation or modification of Conditional Use Permit Nos. 1594 and 3421. (City Exhibits 4a and 4b.) 9. On December 23, 1996, Andrew Lui, property owner, and Everado Godoy, holder, user and /or permittee, were given notice that the Planning Commission's public hearing to consider revocation or modification of Conditional Use Permit Nos. 1594 and 3421 was rescheduled to February 19, 1997. (City Exhibits 4c and 4d.) 10. On February 19, 1997, the Planning Commission held a public hearing to consider the revocation or modification of Conditional Use Permit Nos. 1594 and 3421. (City Exhibit 7.) 11. Following the public hearing, the conditions of approval for Conditional Use Permit No. 1594 were amended and the conditions of approval for Conditional Use Permit No. 3421 were further amended by the Planning Commission by Planning Commission Resolution Nos. PC97 -16 and PC97 -17, respectively. A new expiration date of August 19, 1997, was established for both Conditional Use Permits. (City Exhibits 3a and 3b.) 12. On February 20, 1997, John B. Casoria, attorney for La Estrella Restaurant, filed an appeal of the Planning Commission decisions with the City Clerk of the City of Anaheim. (City Exhibit 1.) 13. On March 11, 1997, the City Council referred the appeal to a hearing officer as permitted by Anaheim Municipg Code Section 1.12.110. (City Exhibit 8.) Page 2 14. On April 10, 1997, the City Clerk of the City of Anaheim gave Notice of a Public Hearing before a Hearing Officer for the subject appeal to be held on April 22, 1997. (City Exhibit 2.) 15. On April 22, 1997, a public hearing on the appeal of La Estrella Restaurant was duly held before Victor J. Kaleta, Hearing Officer. The City was represented by Deborah P. Knefel, Deputy City Attorney, and the Appellant was represented by Leonard Polyakov. Testimony was received from John Poole, Code Enforcement Manager, and Everardo Godoy, Jr., Appellant. (Transcript of Hearing.) 16. At the start of the hearing, Mr. Kaleta, Hearing Officer, stated he understood there was a proposed settlement of the appeal but it would still be necessary to present evidence to support the settlement and proposed modifications of the conditions of approval of Conditional Use Permit Nos. 1594 and 3421. (Transcript, Page 4, line 22, through Page 5, line 1.) GROUNDS FOR TERMINATION OR MODIFICATION OF CONDITIONAL USE PERMITS 17. The grounds for terminating or modifying a conditional use permit are set forth in Anaheim Municipal Code Section 18.03.092. In the instant case, the potential grounds for termination are set forth in subsections .040 and .050 which read as follows: ".040 That the permit or variance granted is being, or recently has been exercised contrary to the terms or conditions of such approval, or in violation of any statute, ordinance, law or regulation." (emphasis added) ".050 That the use or variance for which the approval was granted has been exercised so as to be detrimental to the public health or safety, or so as to constitute a nuisance." (emphasis added) In the instant case, the potential grounds for modification are set forth in subsection .060 which reads as follows: ".060 That any such modification, including the imposition of any additional conditions thereto, is reasonably necessary to protect the public peace, health, safety or general welfare, or necessary to permit reasonable operation under the conditional use permit or variance granted." (emphasis added) Page 3 FINDINGS TO SUPPORT PROPOSED SETTLEMENT AND MODIFICATION OF CONDITIONAL USE PERMIT NOS. 1594 AND 3421 18. At its public hearing of February 19, 1997, the Planning Commission had before it the following written evidence: a. Staff Report to Planning Commission, February 19, 1997, Item No. 6. (City Exhibit 5a.) b. Memorandum to Planning Commission from Lieutenant Jim Flammini, Vice, Narcotics, Criminal Intelligence Bureau, dated October 15, 1996, entitled Application for Entertainment Permit. (City Exhibit 5d.) c. Memorandum to Ms. Della Herrick, Planning Department, from Investigator Tom Engle, Vice Detail, dated December 18, 1996, entitled La Estrella Restaurant. (City Exhibit 5e.) d. Memorandum to Greg Hastings, Zoning Division Manager, from Lieutenant Jim Flammini, Vice, Narcotics, Criminal Intelligence Bureau, dated January 13, 1997, entitled Request for Revocation of Conditional Use Permit. (City Exhibit 5f.) e. Memorandum to Della Herrick, Associate Planner, from Timothy Dunn, Code Enforcement Officer, dated January 28, 1997, entitled La Estrella 500 N. Brookhurst Street, Anaheim. (City Exhibit 5g.) 19. At its public hearing of February 19, 1997, the Planning Commission received oral input from City staff, the public and John Casoria, attorney for Mr. Godoy, which is summarized in its action minutes of February 19, 1997. (City Exhibit 7.) 20. The exhibits referenced in Findings 18 and 19 were entered into evidence without objection of Appellant. (Transcript, Page 7, lines 20 -22.) 21. The proposed settlement is set forth in Ms. Knefel's letter to Mr. Blake of April 21, 1997. (City Exhibit 10.) Specifically, it is acceptance of the conditions of approval set forth in Planning Commission Resolutions Nos. PC97 -16 and PC97 -17 with the following modifications to Planning Commission Resolution No. PC97 -17: "29. That sales and service of alcoholic beverages shall cease at 1 a.m. or closing time, whichever occurs first." Page 4 23. attorney, proposed Page 12, 30. That persons under the age of twenty one (21) shall be prohibited in the bar /public dance hall area of the business when the business is open to the public. 31. That subject use permit is hereby granted for a period of six months, thus expiring in six months, with said six month period to commence on the date of the City Council's decision to adopt the Hearing Officer's recommendations. A:, progress report shall be given to the Planning Couuuission as a Report and Recommendations item, pertaining to compliance with conditions of approval and all rules and regulations, four months from the date of the City Council's decision. The Planning Commission may, at that time readvertise the subject conditional use permit for revocation or modification." 22. During the public hearing, Condition 30. was clarified with respect to the phrase "when the business is open to the public" to exclude private parties such as receptions or banquets. (Transcript, Page 8, lines 5 -11; Page 9, line 25, through Page 10, line 15; Page 11, line 16, through Page 12, line 12 Appellant, Everado Godoy, Jr., under questioning by his Mr. Polyakov, stated he understood and agreed to the modifications. (Transcript, Page 10, line 18, through line 9.) 24. There is a factual basis for and evidentiary support for the proposed settlement and the modification of Conditional Use Permit Nos. 1595 and 3421 and the imposition of additional conditions of approval. bpecifically, the written and oral evidence before the Planning Commission which was received into evidence in this hearing shows that both Conditional Use Permits: a. were being, or recently have been exercised contrary to the terms or conditions of their approval, or in violation of a statute, ordinanpe, law or regulation. b. have been exercised so as to be detrimental to the public health or safety, or so as to constitute a nuisance. c. are candidates for modification, including the imposition of additional conditions thereto, which are reasonably necessary to protect the public peace, health, safety or general welfare. In particular, there is evidentiary support for the following: a. The premises is not being operated as a bona fide restaurant in violation of conditions of approval 11ifood service with an available meals shall be available from opening time until 10:00 p.m. or closing time, whichever occurs first, on Page 5 each day of operation, and 12, the premises shall be operated as a bona fide restaurant and shall provide a menu containing an assortment of foods normally offered in such restaurants, of Conditional Use Permit No. 3421 as set forth in City Council Resolution No. 95R -158 in that food was not being served during normal restaurant business hours and the dining room was unlit and empty during such hours. (City Exhibits 5d and 5e.) b. The premises are being operated so as to be detrimental to the public health or safety or so as to constitute a nuisance in that its operation as resulted in an excessive number of calls for service to the Police Department. (City Exhibit 5c.) c. The premises is being operated so as to violate condition of approval 15, the quarterly gross sales of alcoholic beverages shall not exceed the gross sales of food and meals during the same period, of Conditional Use Permit No. 3421 and a similar condition in its Alcoholic Beverage Control License in that a sampling of sales receipts showed minimum food sales during a 30 day period. (City Exhibit 5e.) d. The premises are being operated in violation of the condition in its Alcoholic Beverage Control License that the entertainment provided shall not be audible beyond the area under the control of the license" in that all residents in the area complain of hearing the music from the premises. (City Exhibit 5e.) e. The proposed additional conditions are reasonably necessary to protect the public peace, health, safety or general welfare. RECOMMENDATIONS Based on the foregoing Findings and evidence, the Hearing Officer recommends that the City Council grant the appeal as to Conditional Use Permit Nos;. 1594 and 3421 and modify the Planning Commission's decision in accordance with the settlement described above. Specifically, the City Council should: 1. Modify condition of approval 20 of Conditional Use Permit No. 1594 to read as follows: "20. That subject use permit is hereby granted for a period of six months, thus expiring in six months, with said six month period to commence on the date of the City Council's decision to adopt the Hearing Officer's recommendations. A progress report shall be given to the Planning Commission as a Report and Recommendations item, pertaining to compliance with conditions of approval and all rules and regulations, four months from the date of the City Council's decision. The Planning Commission may, at that Page 6 time readvertise the subject conditional use permit for revocation or modification." 2. Modify conditions of approval 29, 30, 31 of Conditional Use Permit No. 3421 to read as follows: 29.That sales and service of alcoholic beverages shall cease at 1 a.m. or closing time, whichever occurs first." 30. That persons under the age of twenty one (21) shall be prohibited in the bar /public dance hall area of the business when the business is open to the public, provided however, the business shall not be deemed to be open to the public when it is being used for private parties such as receptions or banquets. 31. That subject use permit is hereby granted for a period of six months, thus expiring in six months, with said six month period to commence on the date of the City Council's decision to adopt the Hearing Officer's recommendations. A progress report shall be given to the Planning Commission as a Report and Recommendations item, pertaining to compliance with conditions of approval and all rules and regulations, four months from the date of the City Council's decision. The Planning Commission may, at that time readvertise the subject conditional use permit for revocation or modification." Respectfully submitted this 12th day of May 1997. Victor J. Kaleta Hearing Officer Page 7