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HomeMy WebLinkAbout75B - PH - CYBER CAFESREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: OCTOBER 1, 2019 TITLE: PUBLIC HEARING — ZONING ORDINANCE AMENDMENT NO. 2019-04 AMENDING SECTIONS 41-45, 41-198.200, 41-365, 41- 377, AND 41-424 OF CHAPTER 41 (ZONING) OF THE SANTA ANA MUNICIPAL CODE PROHIBITING CYBER CAFES AS A PERMITTED USE CITY-WIDE {STRATEGIC PLAN NO. 5,41 /s/ Kristine Ridge! CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 111 Reading ❑ Ordinance on 2i1 Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Approve Zoning Ordinance Amendment No. 2019-04 prohibiting cyber cafes as a permitted use city-wide. PLANNING COMMISSION ACTION At its regular meeting on September 9, 2019, and after conducting a public hearing on the item, the Planning Commission recommended that the City Council approve Zoning Ordinance Amendment (ZOA) No. 2019-04 by a vote of 4:0 (Nguyen Absent). DISCUSSION On October 16, 2018, the City Council adopted Urgency Ordinance No. NS-2956 establishing a 45-day moratorium on the approval, commencement, establishment, operation, relocation or expansion of cyber cafes within the City. On November 20, 2018, the City Council extended the moratorium (Ordinance No. NS-2961) for an additional ten months and 15 days to allow staff time to analyze cyber cafes and provide an enforcement plan and recommendations on whether to adopt a regulatory ordinance permitting such establishments, institute operational guidelines, or adopt an outright ban on cyber cafes. Since the adoption of the moratorium, there have been additional incidents at and/or near cyber cafes. One incident involved an altercation and the shooting of a female victim in the parking lot of a business providing internet access and illegal gaming. Another incident involved the arrest of documented gang members by Santa Ana Police Department (SAPD) for firearm violations and gang enhancements at a cyber cafe. 75B-1 Zoning Ordinance Amendment No. 2019-04 October 1, 2019 Page 2 The cyber cafe moratorium has provided staff the ability to consider all aspects of a cyber cafe business. Staff from the Planning Division, Code Enforcement Division and Police Department have analyzed the City's current regulations and reviewed regulations from other cities that have similar cyber cafe uses. In order to protect and preserve the public health, safety and welfare of the City and its residents, staff has determined that an outright prohibition of cyber cafes citywide is the best option to address the myriad of incidents associated to such businesses. The proposed ordinance amendment will prohibit the establishment of new cyber cafes in the City and will prohibit the relocation or expansion of any legally operating cyber cafe. Further, all existing cyber cafes that were legally established prior to the date of the urgency moratorium will be allowed to continue to operate and will be subject to the City's non -conforming ordinance. However, to maintain their legal non -conforming status, all approved businesses must remain compliant with the Santa Ana Municipal Code (SAMC) and State laws. Any violation of the SAMC or State laws will result in the loss of the non -conforming status. The proposed ordinance will not affect those businesses where computer access is incidental to the permitted use, such as reproduction businesses (i.e. FedEx Office and Staples). In addition, this ordinance will not affect cyber learning centers in any manner. As defined in Section 41-46 of the Santa Ana Municipal Code, cyber learning centers are establishments that provide computer access to the general public without monetary charge and which are operated by a government entity, a school district, or by a non-profit organization. STAFF RECOMMENDATION Based on the analysis provided within this report, staff recommends that the City Council approve Zoning Ordinance Amendment No. 2019-04. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. In accordance with the California Environmental Quality Act (CEQA), the subject action is exempt from further review pursuant to Section 15061(b) (3) of the CEQA Guidelines. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #5 — Community Health, Livability, Engagement and Sustainability; Objective #4 (Support neighborhood vitality and livability). 75B-2 Zoning Ordinance Amendment No. 2019-04 October 1, 2019 Page 3 FISCAL IMPACT There is no fiscal impact associated with this action. Minh Thai Executive Director Planning and Building Agency Exhibits: 1. Ordinance approving ZOA No. 2019-04 2. Planning Commission Staff Report 3. Urgency Ordinance No. NS-2961 4. Licensed Cyber Caf6s & Enforcement Status 75B-3 *:1:111111i1 LS 10.1.19 r7:7ii7f�GnC�I��C�1•�1►�3:�:�:� AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING SECTIONS 41-45, 41- 198.200, 41-365, 41-377 AND 41-424 OF CHAPTER 41 (ZONING) OF THE SANTA ANA MUNICIPAL CODE PROHIBITING CYBER CAFES AS A PERMITTED USE CITY-WIDE THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The City of Santa Ana has witnessed a proliferation of cyber cafe businesses that has resulted in an increased number of public nuisance complaints emanating from such establishments in recent years, involving the following: (1) A documented increase in crime including serious and violent crimes such as loitering, illegal gambling, illegal drug use and sale, burglaries, assaults, fights, theft, robbery, public intoxication, vandalism, property damage, weapons offenses, and other criminal activities in and around cyber cafe establishments, as well as increased pedestrian traffic, noise, parking violations, and other nuisance activities which have resulted in a documented increase and demand for police responses. (2) The City has experienced serious adverse impacts due to the unique manner in which cyber cafe businesses operate the "sweepstakes" games. Customers occupy a computer for hours which results in waiting lines and people congregating or loitering outside the establishment. The long game times and often late night hours have also increased demand for police response regarding noise complaints, criminal activity including fights, drug sales, and adverse gang activity affecting surrounding residential neighborhoods and commercial centers. (3) Crime statistics and calls for service in the City have increased in areas where cyber cafes have been established. The Santa Ana Police Department (SAPD) identified 460 cyber cafe related incidents occurring between January 2018 and September 2018 throughout the City. These incidents include criminal arrests such as possession of firearms, narcotics and stolen vehicles and parole/probation violations. Since January of this year, SAPID has responded to a noticeable increase of calls for service and officer generated activities. 75B_w Ordinance No. NS-XXXX 'F Page 1 of 7 (4) SAPID has spent a significant amount of resources and time conducting surveillance operations around cyber cafes. It was also found that this type of business primarily attracts clientele involved in criminal activity. Enforcement checks on cyber cafes and of customers entering or leaving such locations often result in drug related arrests, evidence of drug trafficking, illegal gambling and gaming and an influx of individuals on probation, parole, or wanted subjects. There has also been prostitution related activity occurring in nearby parking lots and surrounding areas. (5) Prior to enacting the moratorium, the City had approved eleven (11) Cyber Cafe businesses. A review of city enforcement efforts revealed violations of State and City laws at such businesses. These violations included but were not limited to: illegal gaming machines, illegal cannabis storefronts, and other criminal activities such as prostitution and gun violations. B. On October 16, 2018, the City Council adopted Urgency Ordinance No. NS-2956 establishing a forty-five (45) day moratorium on the approval, commencement, establishment, operation, relocation or expansion of cyber cafes. On November 20, 2018, the City Council extended said moratorium (Ordinance No. NS-2961) for an additional ten (10) month and fifteen (15) day period. C. The Planning Division, Code Enforcement Division and Police Department staff have analyzed the City's current regulations and other cities' regulations pertaining to cyber cafes and have determined that in order to protect and preserve the public health, safety and welfare of the City and its residents, prohibiting cyber cafes city-wide will mitigate one potential path for engaging in these illegal activities. The proposed ordinance amendment will prohibit the establishment of new cyber cafes in the City. D. On September 9, 2019, the Planning Commission held a duly noticed public hearing and voted to recommend that the City Council adopt Zoning Ordinance Amendment No. 2019-04 prohibiting cyber cafes city-wide. E. The City Council, on October 1, 2019, held a duly noticed public hearing on this ordinance and has considered all testimony presented thereto. F. All provisions of the Santa Ana Municipal Code (SAMC) which are repeated herein are repeated solely in order to comply with the provisions of Section 418 of the Charter of the City of Santa Ana. Any such restatement of existing provisions of the Code is not intended, nor shall it be interpreted, as constituting a new action of decision of the City Council, but rather such provisions are repeated for tracking purposes only in conformance with the Charter. 75B_5 Ordinance NPage 2 of 7 Section 2. Section 41-45 (Cyber Cafe) of Chapter 41 of the SAMC is hereby amended to read as follows: Sec. 41-45. — Cyber Cafe. Cyber cafe shall mean an establishment whose primary purpose is to provide that pmvi es rnere than six (6) computers and/or other electronic devices for access to the Internet, e-mail,, v0dee garnes or computer software programs which are networked (via LAN or WAN) or which function as a client/server program, and which seeks compensation in any form from users. Cyber cafe is synonymous with PC cafe, internet cafe or cyber centers, but does not include a cyber learning center as defined in Section 41-46 or recreational or entertainment uses as defined in Section 41-142. Section 3. Section 41-198.200 (Cyber Cafes) of Chapter 41 of the SAMC is hereby amended to read as follows: Sec. 41-198.200. — Cyber Cafes - Prohibited. IMMICT-Irrmr-T.Mr-T". "MI • . •. WIN •1101.. . Section 4. Section 41-365 (Uses Permitted in the C1 District) of Chapter 41 of the SAMC is hereby amended to read as follows: Sec. 41-365. - Uses permitted in the C1 district. The following uses are permitted in the C1 district: (a) Retail and service uses. (b) Professional, administrative and business offices. (c) Automobile parking lots and parking structures. (d) Automobile sales, but excluding truck, trailer, tractor and boat sales. (e) Churches and accessory church buildings. (f) Mortuaries. (g) Theaters. (h) Hospitals, clinics, and sanitariums. 75B_c Ordinance No. NS-XXXX V Page 3 of 7 (i) Animal hospitals and veterinaries. (j) Plant nurseries. (k) Gymnasiums. (1) Golf courses, both regulation and miniature, and driving ranges. (m) Public utility structures, including electric distribution and transmission substations. (n) Restaurants, cafes, and eating establishments, other than those specified in Section 41-365.5. (o) Schools and studios operated for commercial or public purposes. (p) Childcare facilities. (q) Service stations. (r) Automobile servicing. (ts) Tattoo and/or body art establishments, subject to the development and operational standards set forth in Section 41-199.3. Section 5. Section 41-377 (Uses Permitted in the C2 District) of Chapter 41 of the SAMC is hereby amended to read as follows: Sec. 41-377. - Uses permitted in the C2 district. The following uses are permitted in the C2 district. (a) All uses which are permitted in the C1 district pursuant to Section 41-365. (b) Automotive garages including body and fender repair, painting, and engine replacement. (c) Blueprinting, photo -engraving, including all types of reproduction processes. (d) Reserved. (e) Equipment rental yards. (f) Metal shops. (g) Tire recapping. 75B_7 Ordinance No. NS-XXXX Page 4 of 7 (h) Wholesale establishments as follows: (1) Automotive equipment, including parts and supplies for machinery. (2) Drugs, chemicals and allied products excluding explosives and industrial chemicals. (3) Dry goods and apparel. (4) Food products. (5) Farm products. (6) Electrical and plumbing supplies. (7) Office equipment and supplies. (i) Truck, trailer, tractor and boat sales. (j) Research institutions and laboratories. (k) Adult entertainment businesses subject to compliance with the requirements of article XVII of this Chapter. Section 6. Section 41-424 (Uses Permitted in the C5 District) of Chapter 41 of the SAMC is hereby amended to read as follows: Sec. 41-424. - Uses permitted in the C5 district. The following uses are permitted in the C5 district: (a) Administrative and professional offices. (b) Retail and service uses. (c) Automobile parking lots, but excluding the sale or storage of automobiles, trucks, trailers, boats, or tractors, whether new or used. (d) Churches, chapels, mortuaries, and theaters. (e) Government buildings. (f) Restaurants and cafes, other than those specified in Section 41-424.5. (g) Schools and studios operated for commercial or public purposes. 75B_Q Ordinance No. NS-XXXX v Page 5 of 7 (h) Child care facilities. (i) The printing, publishing, and circulation of a newspaper, including plant and office. Q) Two-family dwellings not exceeding one (1) unit per three thousand (3,000) square feet of lot area, provided such units front on a secondary or local street. (Lk) Gymnasiums and health clubs. Section 7. The proposed ordinance has been reviewed with respect to the applicability of the California Environmental Quality Act ("CEQA") and the CEQA Guidelines (California Code of Regulations, Title 14, Section 15000 et seq.). The project is exempt from CEQA as it can be seen with certainty that there is no impact on the environment [Section 15061(b)(3)] and a Notice of Exemption (Environmental Review No. 2019-68) will be filed upon adoption of this ordinance. Section 8. If any section, subsection, sentence, clause, phrase or portion of this ordinance for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Santa Ana hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. Section 9. The City Council of the City of Santa Ana hereby adopts an ordinance amending Sections 41-45, 41-198.200, 41-365, 41-377 and 41-424 of Chapter 41 (Zoning) of the Santa Ana Municipal Code prohibiting the establishment of cyber caf6s as a permitted use Citywide. This approval was based upon the evidence submitted at the above said hearing, which includes, but is not limited to: the Request for City Council Action dated October 1, 2019, and exhibits attached thereto; and the public testimony, all of which are incorporated herein by this reference. ADOPTED this day of 12019. Miguel A. Pulido Mayor 75B_e Ordinance No. NS-XXXX 7 Page 6 of 7 APPROVED AS TO FORM: Sonia R. Carvalho City Attorney By:_� Lisa Storck Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify that the attached Ordinance No. NS-XXXX to be the original ordinance adopted by the City Council of the City of Santa Ana on , 2019 and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Clerk of the Council City of Santa Ana 75B_1 O Ordinance No. NS-XXXX Page 7 of 7 REQUEST FOR Planning Commission Action PLANNING COMMISSION MEETING DATE: SEPTEMBER 9, 2019 TITLE: PUBLIC HEARING —ZONING ORDINANCE AMENDMENT NO. 2019-04 PROHIBITING CYBER CAFES AS A PERMITTED USE CITYWIDE {STRATEGIC PLAN NO. 5,4) Prepared by Jerry C. Guevara Q < Executive Director RECOMMENDED ACTION *:1:11-3111i+a PLANNING COMMISSION SECRETARY APPROVED ❑ As Recommended ❑ As Amended ❑ Set Public Hearing For DENIED ❑ Applicant's Request ❑ Staff Recommendation CONTINUED TO %/1i�_--- - Interim Planning Manager Recommend that the City Council adopt an ordinance approving Zoning Ordinance Amendment (ZOA) No. 2019-04 prohibiting cyber cafes as a permitted use citywide. Project Background There has been a proliferation of cyber cafe businesses in the City and statewide. Such businesses are often connected to illegal gambling and other criminal activities. Some of the illicit operations are in the form of "promotional sweepstakes," in which the business allows customers to play gambling- themed games on computers to win cash prizes. Crime statistics and calls for service in the areas of the City where cyber cafes have been established have increased significantly. The Santa Ana Police Department (SAPD) identified 460 incidents occurring between January 1, 2018 and September 2018 related to cyber cafes. These incidents included violent crime, loitering, illegal gambling, illegal drug use and sales, burglaries, assaults, fights, theft, public intoxication, vandalism, property damage, weapons offenses, and other criminal activities in and around cyber cafes at various locations throughout the City. Some of these incidents have led to criminal arrests for possession of firearms, narcotics, and stolen vehicles and parole/probation violations. Based on these concerns, on October 16, 2018, the City Council adopted Urgency Ordinance No. NS-2956 establishing a 45-day moratorium on the approval, commencement, establishment, operation, relocation or expansion of cyber cafes within the City. On November 20, 2018, the City Council extended the moratorium for an additional ten months and 15 days to allow staff time to analyze cyber cafes and provide an enforcement plan and recommendations on whether to adopt a regulatory ordinance permitting such establishments, institute operational guidelines, or adopt an outright ban on cyber cafes. 75B-11 Zoning Ordinance Amendment No. 2019-04 September 9, 2019 Page 2 Since the adoption of the moratorium, there have been additional incidents at and/or near cyber cafes. One incident involved an altercation and the shooting of a female victim in the parking lot of a business providing internet 'access and illegal gaming. Another incident involved the arrest of documented gang members by SAPID for firearm violations and gang enhancements at an approved cyber cafe. Analysis of the Issues The cyber cafe moratorium has provided staff the ability to consider all aspects of a cyber cafe business. Staff from the Planning Division, Code Enforcement Division and Police Department have analyzed the City's current regulations and reviewed regulations from other cities that have similar cyber cafe uses. In order to protect and preserve the public health, safety and welfare of the City and its residents, staff has determined that an outright prohibition of cyber cafes citywide is the best option to address the myriad of concerns. The proposed ordinance amendment will prohibit the establishment of new cyber cafes in the City and will prohibit the relocation or expansion of any legally operating cyber caf6. Further, all existing cyber cafes that were legally established prior to the date of the urgency moratorium will be allowed to continue to operate and will be subject to the City's non -conforming ordinance. The proposed ordinance will not affect those businesses where computer access is incidental to the permitted use, such as reproduction businesses (i.e. Fed Ex Office and Staples). In addition, this ordinance will not affect cyber learning centers in any manner. As defined in Section 41-46 of the SAMC, cyber learning centers are establishments that provide computer access to the general public without monetary charge and which are operated by a government entity, a school district, or by a non-profit organization. Table 1: CEQA, Strategic Plan Alignment and Public Notification & Community Outreach CEQA CEQA Type Exempt per Section 15061 b 3 Reason(s) In accordance with the California Environmental Quality Act (CEQA), the Exempt or Analysis recommended action is exempt from CEQA per Section 15061(b)(3). This exemption applies to projects covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. As it can be seen with certainty that there is no possibility that this code amendment may have a significant effect on the environment, therefore, the activity is not subject to CEQA. Strategic Plan Alignment Goal(s) and Approval of this item supports the City's efforts to meet Goal No. 5 — Community Policy(s) Health, Livability, Engagement & Sustainability, Objective No. 4 (support neighborhood vitality and livability). Public Notification & Community Outreach Required A notice of hearing was published in the Orange County Register. Measures Additional The proposed amendments are citywide and the project site is not located within the Measures boundaries of one single neighborhood association. 75B-12 Zoning Ordinance Amendment No. 2019-04 September 9, 2019 Page 3 Conclusion Based on the analysis provided within this report, staff recommends that the Planning Commission recommend that the City Council approve Zoning Ordinance Amendment No. 2019- 04_ JG:S:\P Ian n i ngCom m ission\2019\9-9-19\ZOANo.2019-04CyberCafes Exhibit: 1. Proposed Draft Ordinance 75B-13 This page left blank intentionally. 75B-14 EXHIBIT 1 75B-15 This page left blank intentionally. 75B-16 LS 9.9.19 ORDINANCE NO. NS-XXXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING SECTIONS 41-45, 41- 198.200, 41-365, 41-377 AND 41-424 OF CHAPTER 41 (ZONING) OF THE SANTA ANA MUNICIPAL CODE PROHIBITING CYBER CAFES AS A PERMITTED USE CITYWIDE THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The City of Santa Ana has witnessed a proliferation of cyber cafe businesses that has resulted in an increased number of public nuisance complaints emanating from such establishments in recent years, involving the following: (1) A documented increase in crime including serious and violent crimes such as loitering, illegal gambling, illegal drug use and sale, burglaries, assaults, fights, theft, robbery, public intoxication, vandalism, property damage, weapons offenses, and other criminal activities in and around cyber cafe establishments, as well as increased pedestrian traffic, noise, parking violations, and other nuisance activities which have resulted in a documented increase and demand for police responses. (2) The City has experienced serious adverse impacts due to the unique manner in which cyber cafe businesses operate the "sweepstakes" games. Customers occupy a computer for hours which results in waiting lines and people congregating or loitering outside the establishment. The long game times and often late night hours have also increased demand for police response regarding noise complaints, criminal activity including fights, drug sales, and adverse gang activity affecting surrounding residential neighborhoods and commercial centers. (3) Crime statistics and calls for service in the City have increased in areas where cyber cafes have been established. The Santa Ana Police Department (SAPD) identified 460 cyber cafe related incidents occurring between January 2018 and September 2018 throughout the City. These incidents include criminal arrests such as possession of firearms, narcotics and stolen vehicles and parole/probation violations. Since January of this year, SAPID has responded to a noticeable increase of calls for service and officer generated activities. 75B-17 Ordinance NPage 1 of 7 (4) SAPID has spent a significant amount of resources and time conducting surveillance operations around cyber cafes. It was also found that this type of business primarily attracts clientele involved in criminal activity. Enforcement checks on cyber cafes and of customers entering or leaving such locations often result in drug related arrests, evidence of drug trafficking, illegal gambling and gaming and an influx of individuals on probation, parole, or wanted subjects. There has also been prostitution related activity occurring in nearby parking lots and surrounding areas. B. On October 16, 2018, the City Council adopted Urgency Ordinance No. NS-2956 establishing a forty-five (45) day moratorium on the approval, commencement, establishment, operation, relocation or expansion of cyber cafes. On November 20, 2018, the City Council extended said moratorium for an additional ten (10) month and fifteen (15) day period. C. The Planning Division, Code Enforcement Division and Police Department staff have analyzed the City's current regulations and other cities' regulations pertaining to cyber cafes and have determined that in order to protect and preserve the public health, safety and welfare of the City and its residents, prohibiting cyber cafes citywide will mitigate one potential path for engaging in these illegal activities. The proposed ordinance amendment will prohibit the establishment of new cyber cafes in the City. D. On September 9, 2019, the Planning Commission held a duly noticed public hearing and voted to recommend that the City Council adopt Zoning Ordinance Amendment No. 2019-04 prohibiting cyber cafes. E. The City Council, on October 1, 2019, held a duly noticed public hearing on this ordinance and has considered all testimony presented thereto. F. All provisions of the Santa Ana Municipal Code (SAMC) which are repeated herein are repeated solely in order to comply with the provisions of Section 418 of the Charter of the City of Santa Ana. Any such restatement of existing provisions of the Code is not intended, nor shall it be interpreted, as constituting a new action of decision of the City Council, but rather such provisions are repeated for tracking purposes only in conformance with the Charter. Section 2. Section 41-45 (Cyber Cafe) of Chapter 41 of the SAMC is hereby amended to read as follows: Sec. 41-45. — Cyber Cafe. Cyber cafe shall mean an establishment whose primary purpose is to provide that provides more than sox (a) computers and/or other electronic devices for access to the Internet, e-mail, videe garnes or computer software programs which are networked (via LAN or WAN) or which function as a client/server 75B-1 Ordinance No. NS-XXXX Page 2 of 7 program, and which seeks compensation in any form from users. Cyber cafe is synonymous with PC cafe, internet cafe or cyber centers, but does not include a cyber learning center as defined in Section 41-46 or recreational or entertainment uses as defined in Section 41-142. Section 3. Section 41-198.200 (Cyber Cafes) of Chapter 41 of the SAMC is hereby amended to read as follows: Sec. 41-198.200. — Cyber Cafes - Prohibited. M. 1121 .. .. .. Section 4. Section 41-365 (Uses Permitted in the C1 District) of Chapter 41 of the SAMC is hereby amended to read as follows: Sec. 41-365. - Uses permitted in the C1 district. The following uses are permitted in the C1 district: (a) Retail and service uses. (b) Professional, administrative and business offices. (c) Automobile parking lots and parking structures. (d) Automobile sales, but excluding truck, trailer, tractor and boat sales. (e) Churches and accessory church buildings. (f) Mortuaries. (g) Theaters. (h) Hospitals, clinics, and sanitariums. (i) Animal hospitals and veterinaries. Q) Plant nurseries. (k) Gymnasiums. (1) Golf courses, both regulation and miniature, and driving ranges. 75B-1 Ordinance No. NS-XXXX Page 3 of 7 (m) Public utility structures, including electric distribution and transmission substations. (n) Restaurants, cafes, and eating establishments, other than those specified in Section 41-365.5. (o) Schools and studios operated for commercial or public purposes. (p) Childcare facilities. (q) Service stations. (r) Automobile servicing. 4s) Tattoo and/or body art establishments, subject to the development and operational standards set forth in Section 41-199.3. Section 5. Section 41-377 (Uses Permitted in the C2 District) of Chapter 41 of the SAMC is hereby amended to read as follows: Sec. 41-377. - Uses permitted in the C2 district. The following uses are permitted in the C2 district. (a) All uses which are permitted in the C1 district pursuant to Section 41-365. (b) Automotive garages including body and fender repair, painting, and engine replacement. (c) Blueprinting, photo -engraving, including all types of reproduction processes. (d) Reserved. (e) Equipment rental yards. (f) Metal shops. (g) Tire recapping. (h) Wholesale establishments as follows: (1) Automotive equipment, including parts and supplies for machinery. (2) Drugs, chemicals and allied products excluding explosives and industrial chemicals. 75B_no Ordinance No. NS-XXXX L Page 4 of 7 (3) Dry goods and apparel. (4) Food products. (5) Farm products. (6) Electrical and plumbing supplies. (7) Office equipment and supplies. (i) Truck, trailer, tractor and boat sales. Q) Research institutions and laboratories. (k) Adult entertainment businesses subject to compliance with the requirements of article XVII of this Chapter. Section 6. Section 41-424 (Uses Permitted in the C5 District) of Chapter 41 of the SAMC is hereby amended to read as follows: Sec. 41-424. - Uses permitted in the C5 district. The following uses are permitted in the C5 district: (a) Administrative and professional offices. (b) Retail and service uses. (c) Automobile parking lots, but excluding the sale or storage of automobiles, trucks, trailers, boats, or tractors, whether new or used. (d) Churches, chapels, mortuaries, and theaters. (e) Government buildings. (f) Restaurants and cafes, other than those specified in Section 41-424.5. (g) Schools and studios operated for commercial or public purposes. (h) Child care facilities. (i) The printing, publishing, and circulation of a newspaper, including plant and office. Q) Two-family dwellings not exceeding one (1) unit per three thousand (3,000) square feet of lot area, provided such units front on a secondary or local street. 75B-21 Ordinance NPage 5 ofx7 (-k) Gymnasiums and health clubs. Section 7. The proposed ordinance has been reviewed with respect to the applicability of the California Environmental Quality Act ("CEQA") and the CEQA Guidelines (California Code of Regulations, Title 14, Section 15000 et seq.). The project is exempt from CEQA as it can be seen with certainty that there is no impact on the environment [Section 15061(b)(3)] and a Notice of Exemption (Environmental Review No. 2019-68) will be filed upon adoption of this ordinance. Section 8. If any section, subsection, sentence, clause, phrase or portion of this ordinance for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Santa Ana hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. Section 9. The City Council of the City of Santa Ana hereby adopts an ordinance amending Sections 41-45, 41-198.200, 41-365, 41-377 and 41-424 of Chapter 41 (Zoning) of the Santa Ana Municipal Code prohibiting the establishment of cyber cafes as a permitted use Citywide. This approval was based upon the evidence submitted at the above said hearing, which includes, but is not limited to: the Request for City Council Action dated October 1, 2019, and exhibits attached thereto; and the public testimony, all of which are incorporated herein by this reference. ADOPTED this day of 12019. APPROVED AS TO FORM: Sonia R. Carvalho City Attorney By: Lisa Storck Assistant City Attorney Miguel A. Pulido Mayor 75B-22 Ordinance NPage 6 ofx7 AYES: Councilmembers NOES: Councilmembers /911991F910� IIIIIIIIIIllibrev T.11=Tm NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify that the attached Ordinance No. NS-XXXX to be the original ordinance adopted by the City Council of the City of Santa Ana on , 2019 and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Clerk of the Council City of Santa Ana %58-23 Ordinance No. NS-XXXX Page 7 of 7 This page left blank intentionally. 75B-24 EXHIBIT 3 LS 11.20.18 ORDINANCE NO. NS-2961 AN EMERGENCY ORDINANCE OF THE CITY OF SANTA ANA MAKING FINDINGS AND EXTENDING THE MORATORIUM ON THE APPROVAL, COMMENCEMENT, ESTABLISHMENT, OPERATION, RELOCATION OR EXPANSION OF CYBER CAFES AND INTERNET ACCESS BUSINESSES WITHIN THE CITY FOR AN ADDITIONAL TEN MONTHS AND FIFTEEN DAYS PENDING STUDY AND ADOPTION OF REGULATORY AND ZONING STANDARDS THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: Section 1. The City Council of Santa Ana hereby finds, determines and declares as follows: A. As in other cities in California, there has been a proliferation of cyber cafes and internet access businesses in the City of Santa Ana. Customers purchase phone time in exchange for opportunities to win chances at internet/network based sweepstakes prizes and money. B. The current provisions of the Santa Ana Municipal Code allow cyber cafes in specific zones, and sets forth the operational standards for such businesses. The provisions of the Santa Ana Municipal Code require review, study, and possible revision in order to respond to recent concerns relating to the impacts of these internet access businesses and cyber cafe uses in the City. C. On October 16, 2018, the City Council adopted Urgency Ordinance No. NS- 2956 establishing a forty-five (45) day moratorium on the approval, commencement, establishment, operation, relocation or expansion of cyber cafes and internet access businesses within the city, through November 30, 2018. D. Since the City Council's approval of the moratorium on October 16, 2018, there have been two additional serious incidents at and/or near cyber cafes and internet access businesses. One involved an altercation and the shooting of a female victim in an adjacent parking lot of a business allowing internet access and possible illegal gaming. The second incident involved the arrest of documented gang members by the Santa Ana Police Department for firearm violations and gang enhancements at an approved cyber cafe. E. In order to address the community's concerns regarding the negative impacts associated with the operation of cyber cafes and internet access businesses, Ordinance No. INS - 2961 75B-25 Page 1 of 7 it is necessary for the City of Santa Ana to continue to study the potential impacts such facilities may have on the public health, safety and welfare. F. While no new regulations have been formulated or proposed in the brief time since the adoption of the moratorium, progress has been made toward identifying key stakeholders and logical next steps. G. City staff, the Santa Ana Police Department, Code Enforcement, and the City Attorney's office are continuing to conduct research into the possible and likely impacts of regulating or outlawing cyber cafes and internet access businesses in the City in order to mitigate such impacts. H. City staff is continuing to gather factual data regarding the adverse impacts experienced by other cities that permit cyber cafes and internet access businesses. This information is currently being processed as a tool to draft provisions for regulating cyber cafes and internet access businesses in the City. I. City staff continues to conduct research into the City's options for regulating cyber cafes and internet access businesses. This research includes a review of many city ordinances in California that either prohibit or regulate cyber cafes and internet access businesses. J. As a result, the City Council desires to extend the moratorium as it applies to cyber cafes and internet access businesses for a period of ten (10) months and fifteen (15) days (Government Code section 65858) to allow staff and the City Council the opportunity to continue to research and select the best course of action for the City's citizens and the community at large. K. The City Council has determined that the circumstances and conditions that led to the adoption of Ordinance No. NS-2956, which are set in the recitals of Ordinance No. NS-2956, have not been alleviated as of the date of this Urgency Ordinance and continue to create the concerns described in Ordinance No. NS-2956. L. Based on the foregoing, the City Council finds that issuing permits, business licenses, or other applicable entitlements to individuals wishing to use their property for the purposes of cyber cafes and internet access businesses, prior to the City's completion of its study of the potential impact of such cyber cafes and internet access businesses, would pose a current and immediate threat to the public health, safety, and welfare, and that a temporary moratorium on the issuance of such permits, licenses, and entitlements is thus necessary. M. Based on the foregoing, the City Council finds that the use of property as a cyber cafe and internet access businesses in any zone of the City prior to the City's completion of its study of the potential impact of such cyber cafes and internet access businesses is a public nuisance and poses a current and immediate threat to the public health, safety, and welfare. Ordinance No. NS - 2961 Page 2 of 7 75B-26 Section 2.Extension of Moratorium and Findings. A. In accordance with the authority granted to the City of Santa Ana under Government Code Section 65858, from and after the date of this Ordinance, no use permit, variance, building permit, business license or other applicable entitlement for use shall be approved or issued for a cyber cafe or internet access business for a period extending through and including October 15, 2019, pending the completion of zoning or other regulations that are needed to alleviate a current and actual threat to the public health, safety and welfare. B. In addition, no property in any zone of the City is to be used for purposes of a cyber cafe or internet access business for a period extending through and including October 15, 2019. The use of any property for such purpose shall be deemed a public nuisance. Any violation of this provision shall be treated as a violation of Section 1-8 of the Santa Ana Municipal Code. C. This Ordinance is an interim urgency ordinance adopted pursuant to the authority granted to the City of Santa Ana by Government Code Section 65858, and is for the immediate preservation of the public health, safety, and welfare. The City Council hereby FINDS and DETERMINES as follows: (1) The City has received an increased number of public nuisance complaints emanating from cyber cafes and internet access businesses in recent weeks, involving the following: (a) Even where cyber cafes and internet access businesses utilize lawful sweepstakes features, these businesses have created adverse impacts on public health, safety and welfare, including a dramatic increase in crime including serious and violent crimes such as loitering, illegal drug use and sales, burglaries, assaults, fights, theft, robbery, public intoxication, vandalism, property damage, weapons offenses, and other criminal activity in and around cyber cafes and internet access business, as well as increased pedestrian traffic, noise, parking violations, and other nuisance activities. These businesses have also resulted in a tremendous increase and demand for police response. (b) The City of Santa Ana and neighboring cities have experienced serious adverse impacts due to the unique manner in which cyber cafes and internet access businesses operate the "sweepstakes" games. Customers may occupy a particular computer system for multiple hours, creating lines and people congregating or loitering while waiting for a computer. Parking availability may also be impacted due to extended periods of game playing, and such businesses have also resulted in increased demand for police response, as well as increased demand for maintenance of public streets and sidewalks. These late night gaming sessions which extend play beyond typical commercial Ordinance No. INS - 2961 75B-27 Page 3 of 7 business hours may cause noise and related impacts on the surrounding community as customers enter and exit these businesses during the late night hours. (c) Crime statistics and calls for service in the City of Santa Ana and neighboring cities where cyber cafes and internet access businesses are located are significantly higher since these establishments opened for business. The Santa Ana Police Department identified 460 incidents occurring between January 1, 2018 and September 2018 at various locations in the city. These incidents have included criminal arrests to include the possession of firearms, possession of narcotics, possession of a stolen vehicle, and parole / probation violations. Since January of this year the Santa Ana Police Department has responded to noticeable increase of calls for service and officer generated activities. The Staff Report for this item, which is incorporated herein by reference, includes these statistics and calls for service. (d) Since the City Council's approval of the moratorium on October 16, 2018, there have been two additional serious incidents at and/or near cyber cafes and internet access businesses. One involved an altercation and the shooting of a female victim in an adjacent parking lot of a business allowing internet access and possible illegal gaming. The second incident involved the arrest of documented gang members by the Santa Ana Police Department for firearm violations and gang enhancements at an approved Cyber Cafe. (e) The Police Department reports its officers have spent a significant amount of time conducting surveillance operations around cyber cafes. This type of business appears to attract clientele involved in criminal activity. Several enforcement stops of customers entering or leaving such locations have yielded drug related arrests, evidence of drug trafficking, an influx of individuals on probation, parole, or wanted subjects. There is also the possibility of prostitution related activity gravitating to the parking lots and surrounding areas based on known subjects being contacted at such locations who either have prior arrests or contacts involving prostitution. Since the City Council's approval of the moratorium on October 16, 2018, there have been two additional serious incidents at and/or near cyber cafes and internet access businesses. One involved an altercation and the shooting of a female victim in an adjacent parking lot of a business allowing internet access and possible illegal gaming. The second incident involved the arrest of documented gang members by the Santa Ana Police Department for firearm violations and gang enhancements at an approved Cyber Cafe. (f) The City Council of the City of Santa Ana is concerned with increased calls for service, increasing reports of violent criminal behavior and related detrimental neighborhood effects associated with cyber cafes Ordinance No. NS - 2961 Page 4 of 7 75B-28 and internet access businesses. The City of Santa Ana and neighboring cities have experienced criminal activity associated with cyber cafes and internet access businesses, such as loitering, illegal drug activity, assaults, fights, theft, robbery, public intoxication, vandalism, property damage, and other criminal activity such as gang and prostitution related activity. (2) After receiving complaints of this nature, the City has committed resources to study the impacts of cyber cafes and internet access businesses on the surrounding community. (3) Absent the adoption of this extension of Urgency Ordinance No. NS-2956, the continued existence of cyber cafes and internet access businesses in the City of Santa Ana could result in an even greater increase in nuisance conditions which negatively affect the health and safety of the community. (4) As a result, it is necessary to extend the moratorium established pursuant to Urgency Ordinance No. NS-2956 for ten months and fifteen days, on the issuance of any entitlements permitting of cyber cafes and internet access businesses in the City, pending completion of the City's study of the potential impacts of cyber cafes and internet access businesses, and possible amendments to the City's zoning ordinances. (5) In addition, it is necessary to prohibit, as a public nuisance, the use of property in any zone of the City for purposes of cyber cafes and internet access businesses for the duration of the ten month and fifteen -day extension. Section 3. Compliance with California Environmental Quality Act. The City Council finds that this Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly; it prevents changes in the environment pending the completion of the contemplated study of impacts. Section 4. Severability. If any sentence, clause, or phrase of this Ordinance, or any part thereof is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portion of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each sentence, clause, or phrase thereof, irrespective of the fact that any one or more sentence, clause, or phrase be declared unconstitutional. Section 5. Effective Date. This Ordinance shall become effective immediately upon adoption if adopted by at a least four -fifths (4/5) vote of the City Council and shall be in effect for period of ten months and fifteen days, extending through and including October 15, 2019, unless extended by the City Council as provided for in the Government Code. Ordinance No. INS - 2961 75B-29 Page 5 of 7 Section 6. Publication. The City Clerk shall certify to the adoption of this Ordinance and cause it, or a summary of it, to be published once in a newspaper of general circulation printed and published within the City of Santa Ana. Section T Report. City staff is instructed to prepare the report required by Government Code Section 65858(d) describing the measures taken to alleviate the condition which led to this Ordinance's adoption for presentation to the City Council no later than ten days prior to the expiration of this Ordinance. Section 8. The Request for Council Action for this ordinance dated November 20, 2018, and duly signed by the Executive Director of the Planning and Building Agency and/or Chief of Police shall, by this reference, be incorporated herein, and together with this ordinance, any amendments or supplements, and oral testimony constitute the necessary findings for this ordinance. Section 9. Any ordinance declared by the City Council to be necessary as an emergency measure for preserving the public peace, health and safety, and containing a statement of the reasons for its urgency, may be introduced and adopted at one and the same meeting if passed by the affirmative votes of at least four -fifths (4/5) vote of the City Council members. Further, California Government Code Section 65858 authorizes the City Council to adopt an interim urgency ordinance, without following the procedures otherwise required for the adoption of an ordinance, to protect the public safety, health, and welfare, prohibiting any uses that may be in conflict with a contemplated general plan, specific plan, or zoning proposal that the City Council, Planning Commission or the planning department is considering or studying or intends to study within a reasonable time. Section 10. This ordinance shall have no further force and effect ten (10) months and fifteen (15) days after adoption, unless subsequently, after public hearing, the City Council members, by four -fifths (4/5) vote, extend this ordinance one more year. Section 11. It shall be unlawful and a misdemeanor for any person to violate or fail to comply with any provision of this ordinance. The violation of any provision of this ordinance shall be punished as provided in Section 1-8 of the Santa Ana Municipal Code. Section 12. This ordinance is introduced, passed and adopted at one and the same meeting and is thereafter immediately effective upon expiration of the original 45- day moratorium. The City Council finds that this ordinance is necessary to protect the public safety, health and welfare. Ordinance No. NS - 2961 Page 6 of 7 75B-30 ADOPTED this 2011 day of November, 2018. APPROVED AS TO FORM Sonia R. Carvalho, City Attorney By: `Lisa Storck 'Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers Benavides, Martinez, Pulido, Sarmiento, Solorio, Tinalero, Villegas (7) None (0) NOT PRESENT: Councilmembers None (0) CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Maria D. Huizar, Clerk of the Council, do hereby attest to and certify the attached Ordinance No. NS-2961 to be the original ordinance adopted by the City Council of the City of Santa Ana on November 20, 2018. Date: Maria D. Huizar Clerk of the Council City of Santa Ana Ordinance No. NS - 2961 75B_31 Page 7 of 7 O Oq '. Oq Oq m m m m m m m. m m w w m: a m: V W N. W W A u m W E E E E E E N \ \ \ \ \ W: v v W: 3 m 'Q 'm 'Q: 'm 'Q 'm u: V U V u: •' N H' N I O: IIjjj O O O O: O O O'. 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