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Ordinance No. 984444 ORDINANCE NO. 984 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CYPRESS, CALIFORNIA, AMENDING CHAPTER 9 OF THE CYPRESS MUNICIPAL CODE RELATING TO LIVE ENTER- TAINMENT. WHEREAS, the City Council of the City of Cypress wishes to promote the City's interest in protecting and preserving the quality of the residential, commercial, and industrial areas of the City, and the quality of life within the City through the adoption of effective land use planning and business licensing regulations; and WHEREAS, the presentation of live entertainment within the City has previously caused significant pernicious secondary effects which include, but are not limited to, the following: incidents of increased and intolerable noise in and around businesses providing live entertainment; incidents of violence in and around businesses providing live entertainment; incidents of erratic and dangerous driving in the parking lots of businesses providing live entertainment; higher levels of police service calls to, in, and around the premises of businesses providing live entertainment; increased trash and debris in and around the premises of businesses providing live entertainment; and increased incidents of the illegal consumption of alcoholic beverages in and around the premises of businesses providing live entertainment; and WHEREAS, the City incorporates by reference the recitals contained in Cypress Ordinance Nos. 918, 950, and 951; and WHEREAS, while the City Council desires to protect the rights of those persons who desire to participate in and enjoy live entertainment, it desires to do so in a manner which decreases, to the greatest extent feasible, the pernicious secondary effects associated with such live entertainment; and WHEREAS, the City Council has determined that the implementation of the regulations imposed by this ordinance will reduce these pernicious secondary effects created by establishments which provide live entertainment; and WHEREAS, it is not the intent of the City in adopting this ordinance to suppress any activities protected by the First Amendment, but rather to enact a content neutral ordinance which addresses the secondary effects businesses providing live entertainment have on the City; and WHEREAS, the City has received an increase in inquiries regarding the addition of live entertainment to existing facilities and the creation of new live entertainment establishments within the City; and WHEREAS, although on more than one occasion, the City has, in writing, solicited the comments of all existing holders of live entertainment permits on the changes proposed to the City's Live Entertainment Permit Ordinance, the Permit holders either failed to respond, or in the case of one establishment, responded by refusing to comment. WHEREAS, on September 10, 1998, the Ninth Circuit issued its opinion in Baby Tam & Co., Inc. v. City of Las Vegas, 98 Daily Journal D.A.R. 9789, holding that Sexually Oriented Businesses' licensing ordinances were required to note the provision of prompt judicial review for persons whose license or permit applications had been denied; and WHEREAS, the City Council declares that it would have adopted the locational and operational provisions of Chapter 9 even in the absence of the permit issuance provisions of that Chapter; and 268/017943- 0001/3183981.7 a01/25/99 WHEREAS, as provided in the severability clause of this ordinance, in the event of invalidation, any person desiring to provide Live entertainment in the City will be deemed to be operating under a de facto permit subject to requirements of this Chapter 9, including but not limited to the locational and operational requirements and the revocation, violation and penalty provisions, which would have been adopted independent of the permit issuance provisions inasmuch as the City provides a de facto permit allowing operation of Live Entertainment in the event of judicial invalidation of its permit issuance provisions; and WHEREAS the provision of a de facto permit is necessary in order to protect the public health, safety and welfare by providing a mechanism to address the pernicious secondary effects associated with the provision of unregulated or underregulated Live Entertainment in the event the City's permit issuance procedures are invalidated by a court of competent jurisdiction; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CYPRESS, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Section 9 -1 of the Cypress Municipal Code is hereby amended to read in its entirety as follows: "Unless the particular provision or the context otherwise requires, the definitions and provisions contained in this section shall govern the construction, meaning, and application of words and phrases used in this Chapter 9. (a) "Amateur" means any person who has never been an entertainer for financial benefit. (b) "Audience" means one or more persons, present as listeners or viewers, but not as entertainers, during any live entertainment. (c) "Audition" means any test of the quality of live entertainment not in the presence of a public audience. (d) "Live Entertainment" means any act, performance, exhibition, demonstration, concert, dialogue, pantomime, or display upon, or by, any person, or any sound, word, speech, song, or other utterance, or any dance, posture, act or other movement, or any music or other sound manually produced from an instrument or article, including the use of an electronic playback device by any announcer or "disc jockey" who, at the time, provides any form of vocal entertainment, including the announcing of song titles or artists' names, in the presence of any audience under the auspices of, or with the consent of the owner, lessor, lessee, or manager of a public place, which agreeably occupies the mind, or pleasantly attracts, diverts, or holds the attention, or is for the amusement of any person in such audience. (e) "Permit Holder" and "Permittee" mean the person who has applied for a live entertainment or special entertainment permit which has been granted. "Person" means any individual, partnership, association, or corporation, including any firm, company, society, or league who files an application for a new or renewal live entertainment or special entertainment permit as provided herein. (f) (g) "Public Place" shall include any business or property regularly opened to the public and shall include, but not be 268/017943- 0001/3183981.7 a01/25/99 -2- 445 446 limited to, stores, shops, restaurants, bars, night clubs, coffee shops, hotels, recreational (both passive and active) areas, horse racing tracks, and shall also include any private club. Public Place shall also include events, concerts, and performances conduct out -of -doors done in conjunction with or as a promotion." SECTION 2. Subsection (a) of Section 9 -2 of the Cypress Municipal Code is hereby amended to read in its entirety as follows: "Except as provided in Section 9 -3, it shall be unlawful for any person to operate, conduct, or manage any public place where any form of live entertainment is conducted for more than five (5) days per calendar year without a valid live entertainment permit from the City. The City shall be the applicant for a Live Entertainment Permit for all City owned property upon which there is to be conducted live entertainment for more than five (5) days per calendar year. Live entertainment conducted for five (5) or fewer calendar days per year shall be subject to the special entertainment permit requirements set forth in Article III of this Chapter 9." SECTION 3. Subsection (a)(3) of Section 9 -3 of the Cypress Municipal Code is hereby repealed and is of no further force or effect. SECTION 4. Section 9 -3 of the Cypress Municipal Code is hereby amended to add the following subsections thereof: "(a) The provisions of this chapter shall not apply to any of the following: (1) Any live entertainment consisting solely of auditions; (2) Any amateur who sings while in, and a part of, any audience; (3) Anything emanating from a radio, record or CD player, jukebox, or television receiver; SECTION 5. The introductory paragraph to Subsection (a) of Section 9 -4 of the Cypress Municipal Code is hereby amended to read in its entirety as follows: "Any person required by this chapter to have a live entertainment or a special entertinament permit shall, prior to providing any live entertainment on the property, file a written, signed, and acknowledged application in duplicate with the City Clerk containing the following information:" SECTION 6. Subsection (a)(1) of Section 9 -4 of the Cypress Municipal Code is hereby amended to read in its entirety as follows: "The full name and address of the applicant. If the applicant is a corporation, the names and addresses of its President, Vice President, Treasurer, Secretary, Chief Financial Officer, Chief Executive Officer, or equivalents and those persons who will have day to day managerial control of the business. If the applicant is a partnership or association, the name of those partners or association members owning more than thirty percent (30%) of the business, as well as the names of all persons who will have day to day managerial control of the business." SECTION 7. Subsection (a)(2) of Section 9 -4 of the Cypress Municipal Code is hereby amended to read in its entirety as follows: "A detailed description of the live entertainment, including the type of entertainment; number of persons engaged in the entertainment; purpose of the entertainment; the estimated number of persons who would attend each event or 268/017943- 0001/3183981.7 a01125/99 -3- performance; and the proximity of the live entertainment to the nearest residential uses on the north, south, east and west sides of the establishment." SECTION 8. Subsection (a)(9) of Section 9 -4 of the Cypress Municipal Code is hereby amended to read in its entirety as follows: "Whether or not the persons referenced in Subsection (a)(1) and (4) of this section have had an adult oriented business permit, massage establishment permit, live entertainment permit, or similar permit suspended, revoked, or cancelled anywhere within the last five (5) years and the circumstances surrounding the same. Suspension or cancellation of liquor licenses shall be considered within the purposes of this section." SECTION 9. Subsection (a)(10) of Section 9 -4 of the Cypress Municipal Code is hereby amended to read in its entirety as follows: "Whether or not the persons referenced in Subsection (a)(1) and (4) of this section have, within the last five (5) years, been convicted of a felony or of any crime involving theft, embezzlement, or moral turpitude; have been convicted of violating any municipal or county ordinance relating to the conduct of live entertainment, including noise violations; or operated or conducted a place of business in a manner constituting a public nuisance. " SECTION 10. Subsection (a)(11) of Section 9 -4 of the Cypress Municipal Code is hereby amended to read in its entirety as follows: "A professionally prepared floor plan drawn to one - quarter inch (1 /4 ") scale whose dimensions are no smaller than 24" x 36" showing the entire interior of the establishment including but not limited to the proposed plan for tables, seating, stages, dance floors, and all elements applicable to the presentation of live entertainment. The plan shall include notations establishing the maximum legal occupancy of the premises." SECTION 11. Subsection (a)(12) of Section 9 -4 of the Cypress Municipal Code is hereby amended to read in its entirety as follows: "The time period for which the permit is required and the time period during which the performances are to occur (i.e. live entertainment permit is desired for a year and the performances are to occur from 7:00 p.m. to 11:30 p.m.)." SECTION 12. Subsection (a)(13) of Section 9 -4 of the Cypress Municipal Code is hereby amended to read in its entirety as follows: "A security plan for the control of pedestrian and vehicle traffic and prevention of unlawful conduct by employees and patrons, such as assaults, vandalism, littering, theft, sale or use of controlled or regulated substances, and consumption of alcohol by persons under the age of 21, within and surround- ing the live entertainment venue. The plan shall include the requirements of Section 9- 8(e)." SECTION 13. A new Subsection (a)(15) is hereby added to the Cypress Municipal Code to read in its entirety as follows: "(15) A statement under oath that the applicant has personal knowledge of the information contained in the application, that the information contained in the application is true and correct, and that the applicant has read and understands the provisions of Chapter 9." 268/017943- 0001/3183981.7 a01/25/99 -4- 447 448 SECTION 14. Section 9 -4 of the Cypress Municipal Code is further amended to add the following subsection: "(c) The submission of an application for a live or special entertainment permit does not authorize the performing of live entertainment until such permit has been granted as provided herein." SECTION 15. Section 9 -6 of the Cypress Municipal Code is hereby amended to read in its entirety as follows: "Sec. 9 -6 Submission of Application, Determination of Completeness, Investigation. (a) Submission of Application. All applications for live entertainment permits shall be filed with the City Clerk on the form provided by the City which shall then be forwarded to the City's Chief of Police and Director of Community Development. (b) Determination of Completeness. Within ten (10) business days following the receipt of an application pursuant to this section, the Director of Community Development or his or her designee shall determine whether the application contains all the information required by the provisions of this Chapter 9. If it is determined that the application is not complete, the applicant shall be notified in writing within five (5) business days of the date such determination is made that the application is not complete and the reasons therefor, including any additional information necessary to render the application complete. The applicant shall have thirty (30) calendar days to submit additional information to render the application complete. Failure to do so within the thirty (30) day period shall render the application void. Within five (5) business days following the receipt of an amended application or supplemental information, the Director of Community Development or his or her designee shall again determine whether the application is complete in accordance with the procedures set forth in this subsection. Evaluation and notification shall occur as provided above until such time as the application is found to be complete. The applicant shall be notified within five (5) business days of the date the application is found to be complete. All notices required by this chapter shall be deemed given upon the date they are either deposited in the United States mail or the date upon which personal service of such notice is provided. (c) Investigation of Permit. Upon determining that an application for a live entertainment permit is complete, the Director of Community Development or his or her designee shall, within fifteen (15) business days of receipt of the application, conduct an investigation of the information contained in the application to determine if the proposed live entertainment and the business in which it is to be offered is in compliance with the provisions of this chapter. Such investigation may include providing copies of the application to the Director of Public Works /City Engineering, the Police Chief, or other officials for their investigation and report thereon. " SECTION 16. The first paragraph of Section 9 -7 of the Cypress Municipal Code is hereby amended to read in its entirety as follows: "Sec. 9 -7 Issuance of Permit. Prompt Judicial Review. Upon the expiration of the fifteen (15) day investigatory period, the Director of Community Development or his or her designee, or his or her designee, shall submit his or her report and recommendation to the City Clerk for presentation to the City Council at the next City Council meeting at which the matter could be properly agendized in accordance with the Ralph M. Brown Act and public hearing notice requirements. At the City Council Meeting, the City Council shall conduct a public hearing, take the testimony of proponents and /or opponents, examine the matter, and approve the issuance of a live entertainment 268/017943- 0001/3183981.7 a01/25/99 -5- permit if a majority of the members present determines that all of the requirements of this chapter have been met, including, but not limited to, the requirements contained in Section 9 -8, and that the investigative report by the chief of police, the director of public works /city engineer, planning director and other officials fails to identify any of the items listed in section 9 -4 (9) and (10). If the above fmdings cannot be made, the application shall be denied. The decision of the City Council shall be final. Any applicant whose permit has been denied pursuant to this chapter shall be afforded prompt judicial review of that decision as provided by law. Notwithstanding the provisions of Code of Civil Procedure Section 1094.6, or any other provision of law, in the event that a complete record of the proceedings is necessary for the judicial review of the decision, City shall provide the record to the person seeking judicial review and the court within 14 days of receiving a request to do so. " SECTION 17. Section 9 -8 of the Cypress Municipal Code is hereby amended to read in its entirety as follows: "Sec. 9 -8 Locational and Operational Requirements. (a) The land use and live entertainment contemplated is in compliance with the requirements of the zone in which the property is located. (b) The proposed live entertainment shall not be held in any building, structure or other location within 300 feet of any approved residential property. For the purposes of this section, all distances shall be measured in a straight line, without regard to intervening structures or objects, from the nearest point of the building, structure or other location in which the live entertainment will be provided to the nearest property line of the residential property. (c) The operation of the proposed live entertainment will be carried on in a building, structure or location which meets and complies with all of the applicable federal, state, and City health, safety, zoning, building, and fire regulations and requirements. (d) Noise from the live entertainment shall not exceed the City noise standards. (e) At least one (1) security guard shall be on duty outside the premises, patrolling the grounds and parking lot at all times live entertainment is offered. The security guard shall be charged with preventing violations of law and enforcing the provisions of this chapter. All security guards shall be uniformed so as to be readily identifiable as a security guard by the public. No person acting as a security guard shall act as a doorman, ticket taker or seller, flyer distributor, or similar functionary while acting as a security guard. In addition to the above, if at any time, there are in excess of one hundred (100) patrons at the establishment, at least one (1) security guard shall be on duty inside the premises patrolling the interior. An additional security guard shall be added for every increase in 50 additional patrons. All security guards (both inside and outside patrolling security guards) shall be licensed pursuant to the Private Security Services Act, Business and professions Code Section 7580 et. seq. (f) The entire exterior grounds, including the parking lots, shall be lighted to 3 foot candles, minimally maintained and evenly distributed, as measured at ground level to permit the security personal to observe activity on the grounds and within automobiles. (g) No exterior door or window of the premises shall be propped or kept open at any time while the business is providing live entertainment. (h) There shall be no drinking of alcoholic beverages on any portion of the premises not licensed for the consumption of alcohol, including, but not limited to the parking lot of the establishment. 268/017943- 0001/3183981.7 a01/25/99 -6- 449 450 (i) There has not been created an excessive need for police services attributable to the establishment or that the police service calls are in response to activity involving the brandishing or use of a firearm, knife, or other deadly weapon at the establishment, or activity involving any crime chargeable as a felony which has resulted in bodily injury. For the purposes of this section, the phrase "excessive need for police services" shall mean that the establishment providing live entertainment has generated a need for police services which is greater than the police service needs of similar businesses which do not provide live entertainment, as measured by the number of police responses to the property." SECTION 18. Section 9 -9 of the Cypress Municipal Code is hereby amended to read in its entirety as follows: "Sec. 9 -9 Revocation of Permit. The City Council may, after notice and hearing, as described below, revoke a live entertainment permit of any person, firm, partnership, corporation, or any other entity holding a live entertainment permit, upon a preponderance of the evidence presented at the hearing that any provision of this chapter has been violated. Prior to revocation, the Director of Community Development or his or her designee shall provide the permittee with written notice of the proposed revocation by certified mail addressed to the street address of the business as shown on the live entertainment permit application. The notice of revocation shall specify grounds for the proposed revocation. The City Council shall hold a revocation hearing as provided below." SECTION 19. Section 9 -10 of the Cypress Municipal Code is hereby amended to read in its entirety as follows: "Sec. 9 -10 Revocation Hearing Procedure: Judicial Review. (a) The City Council shall hold a hearing on a proposed permit revocation pursuant to Section 9 -9 not later than thirty (30) days of the issuance of the notice of revocation or direct the City Manager to appoint a hearing officer who will hold a hearing on a proposed permit revocation pursuant to Section 9 -9 not later than thirty (30) days of the notice of revocation. The Director of Community Development or his or her designee, shall provide the permittee with written notice of the date, time, and place of the hearing. The notice of hearing shall be sent by certified mail to the permittee at an address listed on the live entertainment permit application. This notice requirement shall be satisfied if the notice of revocation contains the date, time and place of the hearing. At the hearing, the Director of Community Development or his or her designee, shall present evidence and witnesses, as necessary, to establish the cause of the revocation of the permit. The permittee, at the hearing, may be represented by legal counsel, may present evidence and witnesses, and may cross - examine City witnesses. The Director of Community Development or his or her designee, shall be permitted to cross - examine any witnesses presented by the permittee. (b) After a hearing held pursuant to Subsection (a) above, the City Council shall render its decision on the proposed revocation within twenty (20) business days from the hearing date or, if heard by a hearing officer, the hearing officer shall render a written recommendation within twenty (20) business days from the hearing date. A copy of the written recommendation shall be mailed by certified mail to the permittee at the address listed in the live entertainment permit application and delivered to the City Clerk to be presented to the City Council at the next regular meeting at which the matter can be agendized in compliance with the Ralph M. Brown Act. The record of the proceeding before the hearing officer shall also be made available to the City Council. The City Council shall either adopt, modify or reject the recommendation of the hearing officer. The City Council's decision shall be mailed by certified mail to the permittee at the 268/017943- 0001/3183981.7 a01125199 -7- address listed in the live entertainment permit application. The decision of the City Council shall be final and conclusive." SECTION 20. Subsection 9 -25 of the Code of the City of Cypress is hereby amended to read in its entirety as follows: Sec. 9 -25 Special Entertainment Required. "It shall be unlawful for any person to operate, conduct, or manage any public place where any form of live entertainment is provided for five (5) or fewer days per year without being in possession of a valid Special Entertainment Permit issued by the City. Live entertainment conducted for more than five (5) days per year shall be subject to the requirements set forth in Article I of this chapter." SECTION 21. Section 9 -29 of the Cypress Municipal Code is hereby amended to read in its entirety as follows: Sec 9 -29. Submission of Application. Determination of Completeness. Investigation. (a) Referral of Application. Upon receipt, the City Clerk shall refer an application for a Special Entertainment Permit to the Chief of Police. (b) Determination of Completeness. Within ten (10) business days following the receipt of an application pursuant to this section, the Chief of Police or his or her designee shall determine whether the application contains all the information required by the provisions of this Chapter 9. If it is determined that the application is not complete, the applicant shall be notified in writing within five (5) business days of the date such determination is made that the application is not complete and the reasons therefor, including any additional information necessary to render the application complete. The applicant shall have thirty (30) calendar days to submit additional information to render the application complete. Failure to do so within the thirty (30) day period shall render the application void. Within five (5) business days following the receipt of an amended application or supplemental information, the Chief of Police or his or her designee shall again determine whether the application is complete in accordance with the procedures set forth in this subsection. Evaluation and notification shall occur as provided above until such time as the application is found to be complete. The applicant shall be notified within five (5) business days of the date the application is found to be complete. All notices required by this chapter shall be deemed given upon the date they are either deposited in the United States mail or the date upon which personal service of such notice is provided. (c) Investigation of Permit. Upon determining that an application for a special entertainment permit is complete, the Chief of Police or his or her designee shall, within fifteen (15) business days of receipt of the application, conduct an investigation of the information contained in the application to determine if the proposed live entertainment and the business in which it is to be offered is in compliance with the provisions of this chapter. Such investigation may include providing copies of the application to the Director of Public Works /City Engineering, the Police Chief, or other officials for their investigation and report thereon." SECTION 22. Section 9 -30 of the Cypress Municipal Code is hereby deleted in its entirety and is of no further force or effect. SECTION 23. Section 9 -31 of the Cypress Municipal Code is hereby amended to read in its entirety as follows: Sec. 9 -31. Issuance of permit. No later than the end of the investigation period referenced in Section 9 -29 above, the Chief of Police shall approve the application for a Special Entertainment 268/017943- 0001/3183981.7 a01/25/99 -8- 452 Permit and issue the permit if he or she determines that the following locational and operational requirements are satisfied: Section 9 -8, Subsections (c) through (i). If the aforementioned sections cannot be satisfied, the permit shall be denied. SECTION 24. Section 9 -32 of the Cypress Municipal Code is hereby amended to read in its entirety as follows: Sec. 9 -32. Revocation of Permit. Any Special Entertainment Permit issued hereunder may be revoked in accordance with the provisions of Section 9 -9 of this Chapter, except that all actions of the Director of Community Development shall be undertaken by the chief of Police. SECTION 25. Section 9 -33 of the Cypress Municipal Code is hereby deleted and of no further force or effect. SECTION 26. Should any section, subsection, clause or provision of this ordinance for any reason be held to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance; it being hereby expressly declared that this ordinance, and each section, subsection, sentence, clause and phrase hereof would have been prepared, proposed, approved, adopted and /or ratified respective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional including, but not limited to, the locational and operational requirements contained in Section 9 -8. In the event a court of competent jurisdiction renders a decision invalidating the permit issuance process contained in this Chapter, any Sexually Oriented Business which operates in the City shall be deemed to be operating under a de facto permit subject to the locational and operational requirements contained in Section 9 -8. The de facto permit shall remain subject to the remaining provisions of the ordinance which have not been invalidated including but not limited to Sections 9 -9 and 9 -10 (Enforcement and Revocation). SECTION 27. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published in the manner prescribed by law. FIRST READ at a regular meeting of the City Council of said City held on the 23rd day of November 1998, and finally adopted and ordered posted at a regular meeting held on the 11th day of January 1999. ATTEST: I C ERK C O F THE CITY OF CYPRESS STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS MAYOR, CITY OF CYPRESS I, LILLIAN HAINA, City Clerk of the City of Cypress, DO HEREBY CERTIFY that the foregoing Ordinance was duly adopted at a regular meeting of the said City Council held on the 11th day of January 1999; by the following roll call vote: AYES: 5 COUNCIL MEMBERS: McCoy, McGill, Piercy, Sondhi NOES: 0 COUNCIL MEMBERS: None and Keenan ABSENT: 0 COUNCIL MEMBERS: None 268/017943- 0001/3183981.7 a01/25/99 CITY CLERK OF THE CITY OF CYPRESS -9-