AGENDA ITEM NO. 8 ORDINANCE No CITY OF HAWTHORNE CITY COUNCIL AGENDA BILL

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AGENDA ITEM NO. 8 ORDINANCE No. 2010 CITY OF HAWTHORNE CITY COUNCIL AGENDA BILL For the meeting of January 10, 2012 Originating Department: Planning & Community Development Interim City Manager Arnold Shadbehr Acting Director: Gregg McClain SUBJECT: Ordinance No. 2010 [2011ZA10] is a City-initiated application to amend Hawthorne Municipal Code (HMC) Chapters 17.04 (Definitions), 17.76 (Conditional Use Permit for On-Site and Off-Site Sale of Alcoholic Beverages). RECOMMENDED MOTION: 1. Open and close Public Hearing 2. First Reading of Ordinance No. 2010 Zoning Code Amendment No. 2011ZA10 NOTICING PROCEDURES: Advertising and notification of the Public Hearing for the application was conducted in compliance with Chapter 17.06, Title 17 of the HMC. FISCAL IMPACT: None ATTACHMENTS: 1. Staff Report 2. Public Hearing Notice 3. Planning Commission Resolution 2011-28 4. Ordinance No. 2010 5. Planning Commission minutes of October 19, 2011

Staff Report City of Hawthorne To: Through: From: Honorable Mayor and City Councilmembers Arnold Shadbehr, Interim City Manager Gregg McClain, Acting Director of Planning Date: January 10, 2012 Subject Ordinance No. 2010 [2011ZA10] is a City-initiated application to amend Hawthorne Municipal Code (HMC) Chapters 17.04 (Definitions), 17.76 (Conditional Use Permit for On-Site and Off-Site Sale of Alcoholic Beverages). The amendment will define Small Format Grocery Stores and establish exemptions from ratio and distance limitations, as required by HMC Sections 17.76.030(A) and 17.76.030(B) through (D), for the granting of alcohol licenses to small format grocery stores in commercial and industrial zones, provided the sale of alcoholic beverages are not the primary product being sold. RECOMMENDED MOTION: 1. Open and close Public Hearing 2. First Reading of Ordinance No. 2010 Zoning Code Amendment No. 2011ZA10 The Planning Commission recommends approval of Ordinance 2010. SUMMARY OF PROPOSED CHANGES The proposed resolution will recommend amendments to Title 17, Chapter 17.04 (Definitions) and 17.76 (Conditional Use Permit On-Site and Off-Site Sale of Alcohol Beverages). The amendment achieves the following goals: 1. Defines a Small Format Grocery Store as a supermarket or grocery center which has between 8,000 and 25,000 square feet of gross floor space.

2. Exempts Small Format Grocery Stores from the ratio and distance limitations for the granting of an alcohol license, via a discretionary permit process. 3. The granting of the exemptions applies only to small format grocery stores and major supermarkets whose annual gross receipts are obtained from at least 80 percent from the sale of non-alcohol merchandise. 4. Prohibits exemptions from ratio and distance limitations to convenience, price point and/or variety stores. 5. Amendments to Chapter 17.04 (Definitions) alphabetize and clarify related definitions. 6. The amendments, beyond those described above, allow the City the opportunity for a general clean-up of the zoning text without changing the central context. The City recognizes the trend towards non-traditional, smaller footprint, full service grocery stores such as Fresh and Easy, Trader Joe s, and Sprouts but the HMC does not exempt small scale grocery stores from ratio and distance limitations which are granted to larger traditional grocery stores. This effectively prevents these stores from locating in Hawthorne. In order to preserve the community aesthetics and public safety, the proposed amendments do not extend to those uses which do not meet the definition of a Major Supermarket and/or a Small Format Grocery Store. ENVIRONMENTAL ANALYSIS/DETERMINATION Staff reviewed the proposed amendment in accordance with the California Environmental Quality Act (CEQA) guidelines and determined that the project is categorically exempt under Section 15305 Minor Alterations in Land Use Limitations, Class 5, for the following reasons: The project represents a minor alteration in land use limitations (zoning regulations); Applies to areas with an average slope of less than 20%; Does not result in any changes in land use or density. ANALYSIS AND CONCLUSION: The City recognizes the trend towards non-traditional, smaller footprint, full service grocery stores such as Fresh and Easy, Trader Joe s, and Sprouts but the HMC does not exempt small scale grocery stores from ratio and distance limitations which are granted to larger traditional grocery stores. This effectively prevents these stores from locating in Hawthorne.

In order to preserve the community aesthetics and public safety, the proposed amendments do not extend to those uses which do not meet the definition of a Major Supermarket and/or a Small Format Grocery Store. Therefore, based on the analysis of the issues, the proposed amendment will allow greater flexibility for smaller footprint, full service grocery stores, to establish in the City of Hawthorne.

NOTICE OF PUBLIC HEARING ZONING CODE AMENDMENT NO. 2011ZA10 PUBLIC NOTICE is hereby given that the City Council of the City of Hawthorne will hold a public hearing on the proposed amendment to the zoning ordinance as follows: Day: Tuesday Date: January 10, 2012 Time: 6:00 p.m. Place: City Council Chambers 4455 West 126th Street Hawthorne, CA 90250 Project Title: Zoning Code Amendment No. 2011ZA10 Project Location: City of Hawthorne, Los Angeles County Project Description: 2011ZA10 City-initiated application to amend Hawthorne Municipal Code (HMC) Sections 17.04 (Definitions), and 17.76 (Conditional Use Permit for On-Site and Off-Site Sale of Alcoholic Beverages). The amendment will define Small Format Grocery Stores and establish exemptions from ratio and distance limitations, as required by HMC Sections 17.76.030(A) and 17.76.030(B) through (D), for the granting of alcohol licenses to small format grocery stores in commercial and industrial zones, provided the sale of alcoholic beverages are not the primary product being sold. PURSUANT TO the provisions of the California Environmental Quality Act, the application is categorically exempt from the requirements for preparation of a Negative Declaration or Environmental Impact Report. FURTHER NOTICE is hereby given that any interested person may appear at the meeting and submit oral or written comments relative to the Zoning Code Amendment or submit oral or written information relevant thereto to the Planning Department, 4455 West 126th Street, Hawthorne, California 90250 prior to the date of this hearing. PLEASE NOTE that pursuant to Government Code Section 65009: In an action or proceeding to attack, review, set aside, void, or annul a finding, determination or decision of the Planning Commission or City Council, the issues raised shall be limited to those raised at the public hearing in this notice or in written correspondence delivered to the Planning Commission or City Council at or prior to the public hearing. Maria Majcherek Associate Planner

ORDINANCE 2010 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HAWTHORNE, CALIFORNIA RECOMMENDING TO THE CITY COUNCIL APPROVAL OF ZONING TEXT AMENDMENT NO. 2011ZA10, AMENDING TITLE 17 (ZONING), CHAPTERS 17.04, AND 17.76 OF THE HAWTHORNE MUNICIPAL CODE, RELATED TO EXEMPTIONS FROM RATIO AND DISTANCE LIMITATIONS FOR ALCOHOL LICENSES FOR SMALL FORMAT GROCERY STORES, IN COMMERCIAL AND INDUSTRIAL ZONES, THROUGH A DISCRETIONARY APPROVAL PROCESS. WHEREAS, this is a City-initiated application to amend Hawthorne Municipal Code (HMC) Sections 17.04 (Definitions), and 17.76 (Conditional Use Permit for On-Site and Off-Site Sale of Alcoholic Beverages). The amendment will define Small Format Grocery Stores and establish exemptions from ratio and distance limitations, as required by HMC Sections 17.76.030(A) and 17.76.030(B) through (D), for the granting of an alcohol license, via a discretionary approval, to small format grocery stores in commercial and industrial zones. Provided the sale of alcoholic beverages is not the primary product being sold, and WHEREAS, on October 19, 2011, the Planning Commission held a duly noticed public hearing on Zone Text Amendment 2011ZA10, and following the close of the hearing, recommended to the City Council approval of the Categorical Exemption under CEQA and approval of Zoning Text Amendment 2011ZA10; and WHEREAS, the City provided published notice of the City Council s hearing on December 29, 2011, and the City Council held a duly noticed public hearing on the Project; and WHEREAS, The City Council of the City of Hawthorne has reviewed and considered the zone text amendment as designated in Planning Commission Resolution PC-2011-28 and all its constituent parts and finds it to be integrated, internally consistent and compatible; and WHEREAS, the City recognizes the current trend towards non-traditional, smaller footprint, full service grocery stores which offer many of the same services provided by traditional grocery stores; and WHEREAS, the City recognizes the need to accommodate and grant exemptions from ratio and distance limitation requirements, set forth in HMC Sections 17.76.030(A) and 17.76.030(B) through (D), to Small Format Grocery Stores ; and

WHEREAS, approval of Ordinance No. 2010 shall allow the establishment of Small Format Grocery Stores and exempt such use from the ratio and distance limitations for the granting of an alcohol license, under the discretionary permitting process, within commercial and industrial zones; and WHEREAS, the City provided published notice of the Planning Commission s Wednesday, October 19, 2011, public hearing on the project; and WHEREAS, on October 19, 2011, the Planning Commission held a duly noticed public hearing on Zone Text Amendment 2011ZA10, and following the close of the hearing, recommended to the City Council approval of the Categorical Exemption under CEQA and approval of Zoning Text Amendment 2011ZA11; and WHEREAS, The City Council hereby makes the following findings in support, adoption, and application of this Ordinance: A. the use Major supermarket exists as a permitted use in commercial and industrial zones. B. Major supermarkets are exempt from the ratio and distance limitations, as required by HMC Sections 17.76.030(A) and 17.76.030(B) through (D), for the granting of an alcohol license. C. the use and definition for a Small Format Grocery Store is not currently listed in any zone. D. a Small Format Grocery Store, under the current HMC regulations, would not be exempt from ratio and distance limitations for the granting of an alcohol license. E. a Major supermarket is defined as a supermarket or grocery center which has in excess of 25,000 square feet of gross floor space, and at least 80 percent of annual gross receipts must be from the sale of non-alcoholic merchandise. F. Small Format Grocery Store is defined as a supermarket or grocery center which has between 8,000 and 25,000 square feet of gross floor space, and at least 80 percent of annual gross receipts must be from the sale of non-alcoholic merchandise. G. the City recognizes the need to balance the needs of the community and preserve community aesthetic standards and the public safety by not providing exemptions from ratio and distance limitation requirements, set forth in HMC Sections 17.76.030(A) and 17.76.030(B) through (D), to those uses which do not meet the definition of a Major Supermarket and/or a Small Format Grocery Store. H. Ordinance 2013 will allow the City to review proposed alcohol sales within small format grocery stores and mitigate potential negative impacts to

surrounding properties via a discretionary approval process (Conditional Use Permit). THE CITY COUNCIL OF THE CITY OF HAWTHORNE, CALIFORNIA DOES HEREBY ORDAIN AS FOLLOWS: Section 1. The Planning Commission finds that all of the facts set forth in the recitals of this Resolution are true and correct. Section 2. The Planning Department Staff determined that the proposed amendments to the Hawthorne Municipal Code constitute a project within the scope of the California Environmental Quality Act (CEQA) and the City s CEQA Guidelines. The project qualifies as a Class 5 Project (Minor Alterations in Land Use Limitations) pursuant to CEQA Guidelines Section 15305. The amendments do not change the land uses allowed on areas of slopes greater than 20% and do not change allowable land uses in a manner that could create a potentially significant impact on the environment. The Planning Commission reviewed the Planning Department s determination of exemption and based on its own independent judgment, concurs in staff s determination. Section 3. The Planning Commission finds and determines that the zoning text amendments set forth below are consistent with the goals, policies, and standards of the General Plan and will further those goals, policies, and standards of the General Plan and will further those goals and policies by ensuring that uses allowed in specific commercial zones are consistent with the purposes and intent of the zone and compatible with other uses in that zone and that development standards specified are appropriate and necessary to ensure that the uses specified do not have a negative impact on the community. Section 4. HMC Section 17.04, pertaining to Definitions, is hereby amended by inserting the following definitions, in alphabetical order: Alcohol license means that license granted by the state which authorized the licensee to sell alcoholic beverages. Bona fide public eating place means a place which is regularly used and kept open for the serving of, full course meals, as opposed to serving only snacks or appetizers, to customers for compensation and which has suitable kitchen facilities connected therewith, containing commercial-grade refrigeration and cooking appliances as well as an assortment of ingredients which may be required for ordinary meals. Any public eating place that satisfies the foregoing criteria but has areas designated for uses other than food preparation or consumption such as a bar/lounge area, billiards, dart boards, dance floors and so forth, in excess of 20 percent of the total gross floor area, shall not be deemed a bona fide public eating place.

Convenience Store shall mean a small retail establishment that offers for sale convenience goods, such as prepackaged food items, tobacco, periodicals, hygiene items, limited overthe-counter pharmaceuticals, and household goods. Such stores typically have on-site service of food or drink items for immediate consumption. Major supermarket means a supermarket or grocery center which has in excess of 25,000 square feet of gross floor space, and at least 80 percent of annual gross receipts are from the sale of non-alcohol merchandise. Major retail commercial center means a retail commercial center developed as a single project which is in excess of 175,000 square feet in gross land area. A retail project for which there is an executed development agreement with the city or the city s redevelopment agency shall also be considered a major retail commercial center. Off-sale Alcohol license Means an alcohol license issued by the State of California which authorizes the sale of alcoholic beverages for consumption off the premises where sold. Off-sale CUP means a conditional use permit issued to allow a use which operates under an offsale general or off-sale beer and wine license. Off-sale outlet means a retail business operating under an off-sale license. On-sale Alcohol license Means an alcohol license issued by the State of California which authorizes the sale of alcoholic beverages for consumption only on the premises where sold. On-sale CUP means a conditional use permit issued to allow a use which operates under an onsale general license, an on-sale beer and wine license, or an on-sale beer license; it shall not include operations under club license. On-sale outlet means a retail business operating under an on-sale license. Price Point Store and/or Variety Store refers to a store that sets a single price for all items or a limited number of prices for items sold.

Small-Format Grocery Store means a supermarket or grocery center which has between 8,000 and 25,000 square feet of gross floor space and at least 80 percent of annual gross receipts are from the sale of non-alcohol merchandise. Does not include convenience, price point and/or variety stores. Snacks a light quick meal which generally does not require any or minimal on-site preparation. Snacks include, but are not limited to, popcorn, nuts, candy, chips, salsa, and dips. Section 5. Section 17.76.020, pertaining to Definitions, is hereby rescinded in its entirety. Section 6. HMC Section 17.76.45, pertaining to major food supermarket, is hereby amended as follows: 17.76.045 Exemptions for major food supermarket and small format grocery store. A. The ratio limitations for off-sale CUPs in Section 17.76.030(A) shall not apply to a major food supermarket or a small format grocery store, provided the sale of alcoholic beverages on the premises is incidental to the sale of food and other grocery items. B. The distance limitations for off-sale CUPs contained in Sections 17.76.030(B) through (D) shall not apply to a major food supermarket or a small format grocery store, provided the sale of alcoholic beverages is not the primary product being sold. C. Exemptions do not apply to Convenience, Price Point and/or Variety Stores. Section 7. The City Council finds and determines that the zoning text amendment set forth above are consistent with the goals, policies, and standards of the City s adopted 1989 General Plan and will further those goals and policies by ensuring allowed uses are consistent with the purposes and intent of the zone and compatible with other uses in that zone and that development standards specified are appropriate and necessary to ensure that the uses specified do not have a negative impact on the community. Section 8. The proposed amendments will not have an adverse effect, either individually or cumulatively, on wildlife or the habitat upon which wildlife depends, and on the basis of substantial evidence, the presumption of adverse effect is rebutted.

Section 9. The proposed amendment will not have an adverse effect, either individually or cumulatively, on wildlife or the habitat upon which wildlife depends, and on the basis of substantial evidence, the presumption of adverse effect is rebutted. Section 10. The zoning text amendments set forth in this ordinance are categorically exempt from the provisions of the California Environmental Quality Act (CEQA). The project qualified as a Class 5 project (Minor Alternations in Land Use Limitations) pursuant to CEQA Guidelines Section 15305. The amendments do not change the land uses allowed on areas of slopes greater than 20% and do not change allowable land uses in a manner that could create a potentially significant impact on the environment. Section 11. Applications for alcohol sales in within Small Format Grocery Stores, under the provisions of this proposed code amendment, will be separately evaluated for potential environmental impacts pursuant to CEQA. Section 12. If any provision, clause, sentence or paragraph of this resolution or application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this ordinance which can be given effect without the invalid provisions or application, and to this end the provisions of this ordinance are declared to be severable. Section 13. Based on the analysis of the categorical exemption and all the evidence in the record, and considering any comments thereon, the City Council exercising its independent judgment finds that the categorical exemption is appropriate and is therefore approved. Section 14. If any provision, clause sentence or paragraph of this ordinance or application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this ordinance which can be given effect without the invalid provisions or application, and to this end the provisions of this ordinance are declared to be severable. Section 15. The City Attorney is authorized to prepare a summary of this ordinance for publication. Section 16. The documents and other materials that constitute the record of the proceedings upon which the Planning Commission s recommendations are based, which include, but are not limited to, the staff reports for the Project and all of the materials that support the staff reports for the Project, are located in the office of the Planning Director of the City of Hawthorne, at 4455 West 126th Street, Hawthorne, California 90250. The custodian of these documents is the Planning Director of the City of Hawthorne

Section 17. The Planning Commission Secretary shall certify to the adoption of this Resolution, because the City is the applicant, and shall forward a copy to the City Council, City Clerk, City Manager and City Attorney. PASSED, APPROVED, and ADOPTED this 10th day of January, 2012. DANIEL D. JUAREZ, MAYOR City of Hawthorne, California ATTEST: NORBERT HUBER, CITY CLERK City of Hawthorne, California APPROVED AS TO FORM: RUSSELL I. MIYAHIRA CITY ATTORNEY City of Hawthorne, California