Port Hueneme Municipal Code Part F Special Requirements and Regulations for Alcoholic Beverage Sales…

A. Purpose. Because the use of alcohol and tobacco are restricted for use by adults twenty-one (21) years of age and older, and in an effort to ensure cannabis products are not sold outside of cannabis retailers specifically approved to operate within the City, to prevent minors from accessing alcohol or tobacco, and to ensure alcoholic beverage establishments and tobacco retailers do not negatively impact neighboring properties and businesses, the following minimum standard licensing and operating requirements have been established. These requirements implement an annual inspection process applicable to the majority of the off-site alcoholic beverage establishments and tobacco retailers operating within the City, and are provided in order to help ensure these uses are not injurious to the health, safety and welfare of the community.

B. No Assumed Authorization. This section does not itself authorize or permit alcoholic beverage sales establishments or tobacco retailers, but only applies to such establishments where otherwise allowed or permitted within an applicable zoning district. The requirements and regulations set forth herein are intended to complement the State of California's related laws and do not replace or usurp any powers vested in the California Department of Alcoholic Beverage Control (ABC).

C. Public Hearings. The City Council shall have the powers and duties to conduct public hearings and make determinations on whether alcoholic beverage sale establishments and tobacco retailers are in compliance with the conditions of approval or operating standards prescribed within this Chapter, and may modify or revoke the use permit or deemed approved status of an alcoholic beverage sales establishment or tobacco retailer in order to obtain compliance with the provisions of this Chapter. This provision is not intended to restrict the powers and duties otherwise pertaining to other City officers or bodies in the field of monitoring and ensuring the harmony of alcoholic beverage and tobacco product sale activities in the City.

D. Inspection and Right of Entry. The sale of alcoholic beverages and tobacco products are closely regulated industries. The officials responsible for enforcement of the Port Hueneme Municipal Code (PHMC) or other ordinances of the City, or their duly authorized representatives, may enter on any site or into any structure for the purpose of inspection, provided they do so in a reasonable manner, whenever they have cause to suspect a violation of these regulations, or whenever necessary to the investigation of violations of the conditions of approval, operational standards prescribed in this section. Any and all such inspections shall further be conducted in compliance with the Fourth Amendment of the United States Constitution. Inspections not otherwise based on cause to suspect a violation shall only be conducted at the intervals and the manner prescribed within Section 10294 et seq. of this Chapter.

(Ord. No. 823, § 2(Exh. A), 1-6-25)

This section requires all new alcoholic beverage sales establishments to obtain a Minor Use Permit from the Director of Community and Economic Development ("Director") or a Conditional Use Permit from the City Council, unless otherwise exempt. This section also confers "deemed approved" status on all legal nonconforming off-site alcoholic beverage establishments and sets forth grounds for the modification, revocation and termination of Minor/Conditional Use Permits ("use permits") and deemed approved status for establishments violating the provisions of this section.

A. Administration.

1. Applicability. The provisions of this section shall apply to the extent permissible under other laws to all establishments located in the City that sell alcoholic beverage for on-site or off-site consumption.

2. Overlapping or Contradictory Regulations. Whenever any provision in this section, in any permit, or in any other law, ordinance or regulation of any kind, imposes overlapping or contradictory regulations, or contains restrictions covering any of the same subject matter, that provision which is more restrictive or imposes higher standards shall control, except as otherwise expressly provided in this section.

B. Requirements and Standards.

1. Minor Use Permit or Conditional Use Permit Required. Except as provided elsewhere in this section, all alcoholic beverage sales establishments shall obtain a Minor Use Permit or Conditional Use Permit and shall satisfy all conditions as set forth in any applicable law or regulation, including any law or regulation of the Port Hueneme Municipal Code, in any entitlement, and in any license issued, prior to engaging in any alcoholic beverage sales activity.

2. Exceptions. Unless otherwise required by this section, a use permit shall not be required for the following types of uses:

a. An off-site alcoholic beverage sales establishment consisting of a general retail store, a grocery store, or a retail pharmacy with greater than ten thousand (10,000) square feet of gross floor area and a maximum of ten (10) percent of the gross floor area devoted to the sale and display of alcoholic beverages. If found to be in violation of this section, such alcoholic beverage sales establishments exempt from the requirement of a use permit pursuant to this subsection can lose their exemption and shall therefore, be required to obtain a Conditional Use Permit from the City Council prior to continuing the sale of alcoholic beverages.

b. A restaurant that serves alcoholic beverages for on-site consumption, limited to on-sale beer and wine only.

c. An establishment considered a deemed approved establishment in accordance with Section 10293(A) and otherwise maintaining a deemed approved status.

3. Cap. As of January 7, 2025, there shall be no more than twelve (12) alcoholic beverage sales establishments which maintain a deemed approved status or which require a use permit operating in the City at any given time.

4. Finding of Public Convenience or Necessity.

a. Pursuant to California Business and Professions Code Section 23958.4, in areas with an over-concentration of off-site alcoholic beverage establishment licenses issued by the ABC, the City desires to strike a balance between the number of off-site licenses and the convenience of store customers. As a result, consideration to approve a finding of public convenience or necessity may be given by the Director or City Council, as applicable, to businesses wishing to obtain off-site alcoholic beverage establishment licenses issued by the ABC in over-concentrated areas that comply with the following criteria:

1. The retailer must occupy greater than ten thousand (10,000) square feet of gross floor area or be tied to a fueling station on the premises with fuel sales comprising the majority of the business' sales;

2. A retailer tied to a fueling station with less than ten thousand (10,000) square feet of gross floor area shall be limited to off-site beer and wine, non-fortified products only;

3. No more than ten (10) percent of the gross floor area may be devoted to alcoholic beverage display, unless a larger display is otherwise approved by the City's decision-making authority;

4. At least ten (10) percent of the gross floor area must be devoted to food sales and non-alcoholic beverages;

5. If the location of the proposed business is within a high crime area, which is defined as Police Department calls for service for alcoholic beverage-related incidents which are twenty (20) percent or more greater than the average number of such incidents reported for the City as a whole, the decision-making body may use that fact in denying the application or the Public Convenience or Necessity finding required by the ABC;

6. The property/building/use has no outstanding Building or Health Code violations or Code Enforcement Activity;

7. The site is properly maintained, including site and building improvements, landscaping and lighting; and

8. The owner/applicant has no history of violations with the ABC and/or City.

b. Prior to the establishment of any business selling alcoholic beverages, when within the Director's purview, the Director, when required pursuant to California Business and Professions Code Section 23958.4 shall make the finding of public convenience or necessity. Prior to making said finding, the Director shall consult with the City Police Department to receive that agency's comments. If the comments received indicate concerns, the Director shall not make the finding, but shall require the applicant to submit an application for a Conditional Use Permit for City Council review.

5. Operational Standards and Additional Conditions of Approval.

a. All new off-site alcoholic beverage establishments (those established on or after January 7, 2025) shall be designed, constructed and operated to conform with all of the following operational standards and alcoholic beverage sales limitations:

1. An establishment shall not result in adverse effects to the health, peace, or safety of persons residing or working in the surrounding area.

2. An establishment shall comply with all provisions of local, state or federal laws, regulations or orders, including without limitation, those of the ABC, California Business and Professions Code Sections 24200, 24200.6, 25612 and 25612.5, the Port Hueneme Municipal Code, as well as any condition imposed on any permits issued pursuant to such applicable laws, regulations or orders. This includes payment of annual City business license fees.

3. The premises upkeep and operating characteristics shall be compatible with, and shall not adversely affect, abutting properties and the surrounding neighborhood.

4. An establishment shall not result in nuisance activities within the premises or on adjacent properties or roadways. An establishment shall comply with the following public nuisance prevention measures:

i. Loitering. The establishment's operators or employees shall be required to discourage loiterers and ask persons loitering for longer than fifteen (15) minutes to leave the area and contact law enforcement officials of enforcement of applicable trespassing and loitering laws if persons requested to leave fail to do so.

ii. Signage. There shall be no exterior advertising of alcoholic products, tobacco and paraphernalia, or similarly controlled products in excess of the signage allowances provided by the California Business and Professions Code and PHMC Section 10303.

The following signs shall be required to be prominently posted in a readily visible manner on an interior wall or fixture, and not on windows, in English and Spanish:

• "California State Law prohibits the sale of alcoholic beverages to persons under twenty-one (21) years of age"

• "No loitering or public drinking"

• "It is illegal to possess an open container of alcohol in the vicinity of this establishment"

iii. Mitigating Alcohol-Related Problems. The establishment shall be required to operate in a manner which mitigates alcohol-related nuisance problems that negatively impact those individuals living or working in the neighborhood. Such mitigation measures shall include the operators and employees of the establishment maintaining adequate surveillance of the premises and nearby areas, such as the parking lot, and contacting local law enforcement officials during early stages of a disturbance.

iv. Drug Paraphernalia. An off-site alcohol establishment shall be prohibited from selling drug paraphernalia as defined in Health and Safety Code Sections 11014.5 and 11364.5. "Drug paraphernalia" means all equipment products and materials of any kind that are used, intended for use or designed for use in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, containing, concealing, injecting, ingesting, inhaling or otherwise introducing into the human body a controlled substance (as defined in California Health and Safety Code Section 11054 et seq.) in violation of the California Uniform Controlled Substances Act commencing with California Health and Safety Code Section 11000.

v. Window Obstructions. To ensure a clean and unobstructed view of the interior of the premises from the exterior public sidewalk or entrance, including the area in which the cash registers are maintained, window obstructions (including window signs, vending machines, shelves, racks, storage, etc.) shall not cumulatively block windows or entry doors in excess of the allowances provided for window signs in PHMC Section 10303.

vi. Training. Each off-site alcoholic beverage establishment operator and its employees selling alcohol shall complete the Licensee Education on Alcohol and Drugs (LEAD) program training provided by the California Department of Alcoholic Beverage Control. LEAD certificates shall be kept on the premises and provided to City officials within forty-eight (48) hours of a written request.

5. Each establishment shall post a copy of these performance standards, any applicable ABC and/or City operating conditions, and any training requirements in at least one (1) prominent place within the interior of the establishment where it will be readily visible and legible to the employees and patrons of the establishment, as well as any City Code Compliance Officer or authorized state or county official.

b. The above operational standards and beverage sales limitations shall be incorporated into any new use permit for off-site alcoholic beverages sales issued under the provisions of this article or any business license issued that authorizes new off-site alcoholic beverage sales if no use permit is otherwise required. Dependent upon the facts and circumstances of any given application, the Director or City Council, when acting upon such application, may include other conditions in an establishment's approval to further ensure the business will not adversely impact surrounding properties nor the health, safety and welfare of the community.

c. Failure to comply with any of the above operational standards or added conditions of approval shall constitute grounds for enforcement action, up to revocation of a Minor/Conditional Use Permit and/or business license.

(Ord. No. 823, § 2(Exh. A), 1-6-25)

This section requires all new tobacco retailer establishments to obtain a Minor Use Permit from the Director of Community and Economic Development or a Conditional Use Permit from the City Council, unless otherwise exempt. This section also confers deemed approved status on all legal nonconforming tobacco retailers and sets forth grounds for the modification, revocation and termination of Minor/Conditional Use Permits and deemed approved status for establishments violating the provisions of this section.

A. Administration.

1. Applicability. The provisions of this section shall apply to all new and existing tobacco retailers in the City to the extent permissible under other laws to all establishments located in the City that conduct retail sales of tobacco products.

2. Overlapping or Contradictory Regulations. Whenever any provision in this section, in any permit, or in any other law, ordinance or regulation of any kind, imposes overlapping or contradictory regulations, or contains restrictions covering any of the same subject matter, that provision which is more restrictive or imposes higher standards shall control, except as otherwise expressly provided in this section.

B. Requirements and Standards.

1. Minor Use Permit or Conditional Use Permit Required. Except as provided elsewhere in this section, all tobacco retailer establishments shall obtain a Minor Use Permit or Conditional Use Permit and shall satisfy all conditions as set forth in any applicable law or regulation, including any law or regulation of the Port Hueneme Municipal Code, in any entitlement, and in any license issued, prior to engaging in any tobacco sales activity.

2. Exceptions. Unless otherwise required by this section, a use permit shall not be required for the following types of uses:

a. A tobacco retailer consisting of a general retail store, a grocery store, or a retail pharmacy with greater than ten thousand (10,000) square feet of gross floor area and a maximum of ten (10) percent of the gross floor area devoted to the sale and display of tobacco products. If found to be in violation of this section, such tobacco retailers exempt from the requirement of a use permit pursuant to this subsection can lose their exemption and shall therefore, be required to obtain a Conditional Use Permit from the City Council prior to continuing the sale of tobacco.

b. An establishment considered a deemed approved establishment in accordance with Section 10293(A) and otherwise maintaining a deemed approved status.

3. Cap. As of January 7, 2025, there shall be no more than nineteen (19) tobacco retailer establishments which maintain a deemed approved status or which require a use permit operating in the City at any given time.

4. Operational Standards and Conditions of Approval.

a. All new tobacco retailers (those established on or after January 7, 2025) shall be designed, constructed and operated to conform with all of the following operational standards:

1. An establishment shall not result in adverse effects to the health, peace, or safety of persons residing or working in the surrounding area.

2. A tobacco retailer shall comply with all provisions of local, state or federal laws, regulations or orders, including without limitation, those in the California Health and Safety Code Sections 11014.5 and 11364.5, the Uniform Controlled Substances Act (commencing with California Health and Safety Code Section 11000), California Business and Professions Code Sections 22950—22964, the Port Hueneme Municipal Code, as well as any condition imposed on any permits issued pursuant to such applicable laws, regulations or orders. This includes payment of annual City business license fees.

3. The premises upkeep and operating characteristics shall be compatible with, and shall not adversely affect, abutting properties and the surrounding neighborhood.

4. An establishment shall not result in nuisance activities within the premises or on adjacent properties or roadways. An establishment shall comply with the following public nuisance prevention measures:

i. Loitering. The establishment's operators or employees shall be required to discourage loiterers and ask persons loitering for longer than 15 minutes to leave the area and contact law enforcement officials of enforcement of applicable trespassing and loitering laws if persons requested to leave fail to do so.

ii. Signage. There shall be no exterior advertising of alcoholic products, tobacco and paraphernalia, or similarly controlled products in excess of the signage allowances provided by the California Business and Professions Code and PHMC Section 10303.

The following signs shall be required to be prominently posted in a readily visible manner on an interior wall or fixture, and not on windows, in English and Spanish:

• "California State Law prohibits the sale of alcoholic beverages to persons under 21 years of age"

• "No loitering or public drinking"

• "It is illegal to possess an open container of alcohol in the vicinity of this establishment"

iii. Mitigating Related Problems. The tobacco retailer shall be required to operate in a manner which mitigates nuisance problems to its business operations that negatively impact those individuals living or working in the neighborhood. Such mitigation measures shall include the operators and employees of the establishment maintaining adequate surveillance of the premises and nearby areas, such as the parking lot, and contacting local law enforcement officials during early stages of a disturbance.

iv. Drug Paraphernalia. A tobacco retailer shall be prohibited from selling drug paraphernalia as defined in Health and Safety Code Sections 11014.5 and 11364.5. "Drug paraphernalia" means all equipment products and materials of any kind that are used, intended for use or designed for use in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, containing, concealing, injecting, ingesting, inhaling or otherwise introducing into the human body a controlled substance (as defined in California Health and Safety Code Section 11054 et seq.) in violation of the California Uniform Controlled Substances Act commencing with California Health and Safety Code Section 11000.

v. Window Obstructions. To ensure a clean and unobstructed view of the interior of the premises from the exterior public sidewalk or entrance, including the area in which the cash registers are maintained, window obstructions (including window signs, vending machines, shelves, racks, storage, etc.) shall not cumulatively block windows or entry doors in excess of the allowances provided for window signs in PHMC Section 10303.

5. The following shall be prohibited at any tobacco retailer business location:

i. Smoking or vaping on the premises at any time.

ii. The sale of tobacco products and paraphernalia to a person under the age of twenty-one (21).

iii. Sales solicited or conducted on the premises by minors.

iv. The sale of flavored tobacco products or presumptive flavored tobacco products.

v. Distribution of free or low-cost tobacco, tobacco products or tobacco paraphernalia, as well as tobacco coupons for said items.

vi. The sale of tobacco products and paraphernalia via a vending machine, by a sidewalk vendor or mobile vehicle vendor (mobile vending), or via temporary use permit.

vii. The sale of nitrous oxide, a device to dispense or administer nitrous oxide, cartridge or any device that contains any quantity of nitrous oxide. "Nitrous oxide" means the colorless nonflammable gas (N 2 O) sometimes used in aerosols and sometimes used as an anesthetic, which when inhaled, produces loss of sensibility to pain, often preceded by exhilaration and laughter and used as an anesthetic in dentistry. Nitrous oxide is often referred to as "Laughing gas," "NOX," "Galaxy gas," amongst others.

6. The display area of tobacco products, including tobacco paraphernalia, shall be subject to the following limitations:

i. Shall not exceed ten (10) percent of the total gross floor area of a business establishment, excluding smoke shops which are defined as an establishment that either devotes more than ten (10) percent of its total floor area to tobacco products, including paraphernalia, or devotes more than a two-foot depth by four-foot length section of a single shelf space for display for sale of tobacco paraphernalia.

ii. Shall be located behind a service counter in a manner that prohibits self-service by the customer.

iii. The display area devoted to tobacco paraphernalia shall not exceed a two-foot depth by four-foot length section of a single shelf space, excluding smoke shops.

7. A copy of these operational standards, any applicable California Department of Tax and Fee Administration, or City operating conditions and licenses shall be posted in at least one (1) prominent place within the interior of the establishment where it will be readily visible and legible to the employees and patrons of the establishment as well as any City Code Compliance Officer or authorized state or county official.

b. The above operational standards and conditions shall be incorporated into any new use permit for a tobacco retailer issued under the provisions of this section or any business license issued that authorizes a new tobacco retailer if no use permit is otherwise required. Dependent upon the facts and circumstances of any given application, the Director or City Council, when acting upon such application, may include other conditions in an establishment's approval to further ensure the business will not adversely impact surrounding properties nor the health, safety and welfare of the community.

c. Failure to comply with any of the above operational standards or added conditions of approval shall constitute grounds for enforcement action, up to revocation of a Minor/Conditional Use Permit and/or business license.

(Ord. No. 823, § 2(Exh. A), 1-6-25; Ord. No. 826, § 2, 8-18-25)

A. Regulations Established. Except as otherwise provided in this section, any off-site alcoholic beverage sales establishment or tobacco retailer in the City lawfully operating prior to January 7, 2025, shall thereafter be a deemed approved establishment and not a legal nonconforming use. In addition, any alcoholic beverage sales establishment or tobacco retailer exempt from the requirement to obtain a use permit pursuant to this section that lawfully commences operations on or after January 7, 2025 shall be an establishment with deemed approved status for purposes of this section. A deemed approved establishment shall obtain and retain its deemed approved status as long as the following are met:

1. The establishment complies with the operational standards and conditions of approval set forth in Section 10291(B)(4) as it relates to alcohol beverage sales establishments and Section 10292(B)(3) as it relates to tobacco retailers.

2. The establishment complies with any previously conditions of approval.

3. The establishment pays all required fees and undergoes an initial compliance check within one hundred eighty (180) days of January 7, 2025 and annually thereafter to ensure such establishments remain in compliance with the performance standards and all other applicable provisions of the deemed approved alcoholic beverage sales regulations.

4. The off-site alcoholic beverage sales establishment does not change its type of ABC license within a license classification.

5. The establishment does not substantially change its mode or character of operation as defined in this section.

C. Public Nuisance. Failure to comply with the standards set forth herein shall constitute a public nuisance.

D. Notification to Owners of Deemed Approved Establishments.

1. The City shall notify each owner and/or operator of an off-site alcoholic beverage sales establishment or tobacco retailer of its deemed approved status at the address as shown on their City business license, and also, if not the same, shall notify any property owner at the address shown on the county assessor's property tax assessment records. The notice shall be sent via certified mail with return receipt requested and shall include:

a. A copy of the operational standards and conditions of approval set forth in Section 10291(B)(4) as it relates to alcohol beverage sales establishments and Section 10292(B)(3) as it relates to tobacco retailers, with the requirement that they be posted in at least one (1) prominent place within the interior of the establishment where it will be readily visible and legible to the employees and patrons of the establishment;

b. Notification that the establishment is required to comply with all of the operational standards and conditions of approval;

c. Notification that initial and annual compliance inspections will be conducted by the City to ensure compliance and that collection of the compliance inspection fee set forth in the City's most recently adopted master fee schedule will be required; and

d. Notification that the establishment is required to comply with all other aspects of the deemed approved regulations.

2. Should the notice be returned, then the notice shall be sent via first-class mail and hand delivered by City staff to the alcohol beverage sales establishment or tobacco retailer.

E. Change in ABC license type and/or substantial change in mode or character of operation.

1. Upon the occurrence of any of the following, a deemed approved alcoholic beverage sales establishment or tobacco retailer shall be required to obtain approval of a Minor Use Permit or Conditional Use Permit:

a. The establishment changes its alcoholic beverage sales activity so that ABC requires a different type of license.

b. The establishment ceases to be licensed by the ABC.

c. There is a substantial change in the mode or character of operation. As used herein, the phrase "substantial change in mode or character of operation" shall include, but not be limited to, any of the following:

1. The establishment increases the floor or land area or shelf space devoted to the display or sales of any alcoholic beverage beyond that which actually existed or was permitted immediately prior to the date the establishment was initially deemed approved;

2. The establishment extends its hours of operation by thirty (30) minutes or more;

3. The establishment voluntarily discontinues its active operation for more than ninety (90) consecutive days.

4. Any other circumstances that result in a substantial change in the mode or character of operation, except for those circumstances listed in subdivision (b) of Section 23790 of the California Business and Professions Code.

2. Upon notification or discovery by the City of any of the above occurrences, a public hearing before the City Council shall be held to determine whether a substantial change in the mode or character of operation of the establishment has occurred. If the City Council determines that a substantial change has occurred, the alcoholic beverage sales establishment or tobacco retailer must cease operation and may not resume unless it applies for, and obtains, a Minor Use Permit or Conditional Use Permit in conformance with this Chapter.

(Ord. No. 823, § 2(Exh. A), 1-6-25)

This section requires that all off-site alcoholic beverage sales establishments and tobacco retailers required to obtain a use permit or having deemed approved status shall be subject to an initial inspection upon approval of a use permit or upon notification provided in Section 10293(D), as well as an annual monitoring inspection thereafter in conjunction with the business license renewal process. Alcoholic sales establishments listed as exempt in Section 10291(B)(2)(a) and tobacco retailers listed as exempt in Section 10292(B)(2)(a) shall be exempt from this requirement.

A. Scope of Inspections. Staff from the Community and Economic Development Department Code Compliance or Planning Divisions, or staff that is otherwise designated by the City shall conduct an interior and exterior site inspection of the public areas of each alcoholic beverage sales establishment and tobacco retailer prior to the initial granting of a business license, prior to the annual issuance of a renewed business license, or upon notification provided in accordance with Section 10293(D). The scope of the inspection shall include, but is not limited to:

1. Exterior property maintenance and cleanliness;

2. Landscape maintenance in accordance with the PHMC;

3. Maintenance and upkeep of the primary structure, as well as ancillary site features, such as parking, trash enclosures, etc.;

4. Compliance with all of the applicable operating standards and conditions of approval outlined in Section 10291(B)(4) as it relates to alcohol beverage sales establishments and Section 10292(B)(3) as it relates to tobacco retailers; and

5. Compliance with all other applicable conditions of approval issued with the establishment's use permit, as applicable.

B. Alcoholic Beverage Sales Establishments and Tobacco Retailers Initial Inspections. Upon approval of a use permit or upon notification to establishments in accordance with Section 10293(D), the aforementioned establishments shall undergo one (1) initial compliance inspection, to be conducted by City staff noted in Section 10294(A) prior to the issuance of a business license, or within ninety (90) days of January 7, 2025 for deemed approved establishments. One (1) compliance re-inspection shall also be conducted no sooner than fifteen (15) days after a failed initial compliance inspection unless the business owner requests the inspection take place at an earlier date.

1. Any new off-site alcohol beverage sales establishment or tobacco retailer for which a use permit has been approved shall not be granted a business license until any violation found after the initial compliance inspection or the compliance re-inspection is resolved. Operation of a business without a business license shall be subject to the provisions of PHMC Section 5013.

2. Any violation found at a deemed approved establishment for which the compliance period has been exhausted pursuant to Section 10293(B)(3) shall be subject to the enforcement provisions of Sections 10293(A) and (B).

C. Renewal Inspections. An offsite alcoholic beverage sales establishment or tobacco retailer seeking to renew a business license shall undergo an annual compliance inspection conducted by Code Compliance staff within thirty (30) days prior to the expiration of the business license, and one (1) compliance re-inspection to be conducted no sooner than fifteen (15) days after a failed annual renewal inspection. Any violation found after the compliance re-inspection shall be subject to the enforcement provisions of Section 10295 et seq.

D. Notice of Annual Renewal Inspection.

1. Prior to business license expiration for an offsite alcoholic beverage sales establishment or tobacco retailer, the City shall mail a business license renewal notice to the business owner and the businessowner's authorized representative (if any) notifying the business of the following:

a. The business owner's requirement to renew the annual business license; and

b. Notice that code compliance staff will inspect the interior and exterior public areas of the business establishment to ensure that it is in compliance with applicable operational standards and conditions of approval within thirty (30) days of the date of the renewal notice.

2. Said notice will be mailed by first-class mail to the business owner and the business owner's authorized representative (if any) as it appears in the City business license records, and a copy will also be mailed to the alcohol sales establishment or tobacco retailer establishment to be inspected. In the case of multiple business owners of the same establishment, notice to any one (1) of the business owners is sufficient notice.

3. In the event a business owner, business owner's authorized representative (if any), or tenant at the alcohol sales establishment or tobacco retailer location refuses to allow the City access to conduct the inspection of the public areas, the City Manager, City Code Compliance Official, or their designee shall proceed in accordance with PHMC Section 10228 and may use such other legal remedies as may be available at law or in equity to ensure that an inspection is conducted as required by this section.

4. If the City is not able to obtain the consent of the business owner, business owner's representative (if any), or tenant of the alcohol sales or tobacco retailer establishment to conduct an inspection, the City shall withhold issuance of the business license until the inspection is conducted and passed.

E. Passed Inspections. If no violations are found as a result of an initial or annual renewal inspection or re-inspection, the City's record shall so state, and the City shall issue or renew the business license, or confirm that the deemed approved status may continue, as the case may be, provided any other outstanding business license requirements are satisfied. All inspection reports shall be available as a public record upon request.

F. Failure to Pass Initial/Annual Inspections. After completion of the alcohol sales establishment or tobacco retailer initial inspections, the annual business license inspections, or any re-inspection where the alcohol sales establishment or tobacco retailer fails an inspection due to having a violation(s) on the property, the City shall issue a Notice of Violation to the property owner and the business owner as noted in the City's business license records, and which shall contain, at a minimum, the following:

1. An itemization of any violation(s) of applicable laws identified during the inspection;

2. The period of time given for correcting each of the identified violations;

3. Notice that the City will re-inspect the alcohol sales establishment or tobacco retailer no sooner than the end of the period of time for correction;

4. A statement that if the violation(s) found during the reinspection have not been corrected, the City will not issue or renew the business license, or confirm that the deemed approved status may be continued, as the case may be, and that the City may pursue any legal remedies available to it in order to abate said violations.

(Ord. No. 823, § 2(Exh. A), 1-6-25)

This section sets forth the process for modifying or revoking the deemed approved status or use permit, as the case may be.

A. Grounds for Modification or Revocation. An alcoholic beverage sales or tobacco retailer establishment's use permit or deemed approved status, as the case may be, may be modified or revoked by the City Council for failure to comply with the operational standards and conditions of approval established in this Chapter, and/or for being in violation of other federal, state or City laws and regulations that have a negative effect on the public health and safety, after holding a public hearing in the manner described in this Chapter.

B. Violations. Whenever the City Manager or his/her designee determines that a violation of this Chapter exists, a Code Compliance Officer shall issue a written Notice of Violation containing all information required by Section 10294(F) of this Chapter. Any person who fails to comply with any provisions of this section after receiving written notice of the violation(s) and who has exhausted the period of time provided to correct such violation(s) shall be deemed to be in violation of this section.

C. The following investigative procedures shall be utilized for potential violations of conditions of approval and/or operational standards as required by this Chapter:

1. Upon the City's receipt of a complaint from the public, Police Department, City official, or any other interested person that an off-site alcohol beverage sales or tobacco retailer establishment is operating in violation of: 1) the conditions of approval of its use permit; or 2) in the case of a deemed approved establishment, the operational standards in Section 10293, the following procedures shall apply:

a. A City Code Compliance Officer, or other City-designated representative, shall assess the nature of the complaint and its validity by conducting an inspection of the premises to assess the establishment's compliance with applicable conditions and operational standards.

b. If the Code Compliance Officer, or other City representative, determines that the establishment is in violation of the applicable conditions of approval or standards, they shall give written notice of the violation to the owner and/or operator of the establishment as set forth herein and seek to remedy the violation by issuing an administrative citation if the violation is not timely corrected and no hearing on the notice of violation is requested. However, if the Compliance Officer, or other City-designated representative, in their sole discretion, determine the violation is not capable of correction, presents a serious threat to public health or safety, or otherwise warrants expedited action, the matter may be referred directly to the City Council for a public hearing at which the establishment's use permit or deemed approved status may be modified or revoked.

c. If the owner or operator receiving a notice of violation requests a hearing pursuant to PHMC Section 3400, the Hearing Officer, in addition to holding such a hearing, may make a recommendation to the City Council as set forth in subsections (1) and (2), below.

1. In the case of a conditionally permitted establishment, to conduct a hearing to consider modifying or revoking the establishment's use permit, if in the judgment of the Hearing Officer, based upon information then before him or her, such action is necessary to ensure compliance with this section. Such recommendation may include the suggestion of additional or amended reasonable conditions on the use or operational standards of the subject establishment.

2. In the case of a deemed approved establishment, to conduct a hearing to consider modifying or revoking the establishment's deemed approved status, if in the judgment of the Hearing Officer, based upon information then before him or her, such action is necessary to ensure compliance with this section. Such recommendation may include the suggestion of imposing reasonable conditions on the use or operational standards of the subject establishment.

d. If a hearing before the City Council is conducted on a potential violation, the City Council shall determine whether the establishment is in compliance with:

1. In the case of a conditionally permitted establishment, the operational standards and/or conditions of approval in the establishment's use permit. Based on this determination, the City Council may allow the operations of the establishment to continue under the establishment's use permit; may modify the use permit by imposing additional reasonable conditions, including, but not limited to, the operating standards and conditions listed in this Chapter, as are in its judgment necessary to ensure compliance with the operational standards and/or conditions of approval; or may revoke the establishment's use permit. If the City Council determined to impose further, new conditions on the establishment's use permit, such conditions shall be based upon the information then before it. In reaching a determination as to whether an establishment has violated the operational standards and/or conditions of approval, or as to the appropriateness of imposing additional or amended conditions, or revoking the use permit, the City Council may consider the following:

i. The length of time the establishment has been out of compliance with the operational standards and/or conditions of approval.

ii. The impact of the violation of the operational standards and/or conditions of approval on the community.

iii. Any information regarding the owner of the establishment's efforts to remedy the violation of the operational standards and/or conditions of approval. "Efforts to Remedy" shall include, but are not limited to: 1) timely calls to the Police Department that are placed by the owner and/or operator of the establishment, their employees, or agents (it is not the intent of this section to discourage the reporting of nuisance or criminal activity); 2) requesting that those persons engaging in activities causing violations of the operational standards and/or conditions of approval cease those activities, unless the owner or operator feels that their personal safety would be threatened in making that request; 3) making improvements to the establishment's property or operations, including, but not limited to, the installation of security cameras, the clearing of window obstructions, the cleaning and maintenance of the property, and the abatement of graffiti within three (3) days.

2. In the case of a deemed approved establishment, the performance standards as set forth in this Chapter. Based on this determination, the City Council may continue the deemed approved status for the establishment; modify the use by imposing reasonable conditions, including but not limited to, the operating standards and conditions listed in this Chapter, as are in its judgment necessary to ensure compliance with the performance standards; or may revoke the establishment's deemed approved status. If the City Council determines to impose further, new conditions on the establishment, such conditions shall be based upon the information then before it. In reaching a determination as to whether a deemed approved use has violated the performance standards, or as to the appropriateness of imposing additional or amended conditions, or revoking the deemed approved status, the City Council may consider the following:

i. The length of time the establishment has been out of compliance with the operational standards as set forth in Section 10293.

ii. The impact of the violation of the operational standards on the community.

iii. Any information regarding the owner of the deemed approved establishment's Efforts to Remedy (as defined above) the violations of the operational standards.

3. If in the judgment of the City Council, the operations of the owner or operator of the establishment constitute a nuisance, the owner or operator is unable or unwilling to abate the nuisance, and the nuisance is shown to be a threat to the public health and safety of the surrounding neighborhood, the City Council may revoke the establishment's use permit, or deemed approved status, as applicable. If revoked, any continued operation of the business shall require a new Conditional Use Permit approved by the City Council. All determinations, decisions, and conditions made or imposed regarding the alcohol sales establishment's use or tobacco retailer's use shall run with the land.

(Ord. No. 823, § 2(Exh. A), 1-6-25)