DATE:
October 18, 2022
TO:
Adam Politzer, Interim City Manager
FROM:
Charles S. Bryant, Community Development Director
SUBJECT:
An Ordinance Of The City Council Of The City Of Emeryville Amending Chapter 4 Of Title 5 Of The Emeryville Municipal Code, “Cabarets And Dances” (CEQA Determination: Exempt Pursuant To CEQA Guidelines Sections 15061(b)(3), 15378(a) And 15378(b)(5))
RECOMMENDATION
Staff recommends that the City Council adopt the first reading of the above-referenced ordinance, amending Chapter 4 of Title 5 of the Emeryville Municipal Code, “Cabarets and Dances”.
BACKGROUND
On February 1, 2022, Mayor Bauters requested and received majority support from the City Council for a future agenda item to discuss the development of an administrative process for the issuance of Cabaret Licenses, referring the item to the Budget and Governance Committee for eventual report back to the City Council. The draft ordinance is scheduled to be reviewed by the Budget and Governance Committee on October 13, 2022. Because the publication of this report predates the Budget and Governance Committee meeting, staff will communicate the Budget and Governance Committee’s action and recommendation(s), if any, at the October 18, 2022 City Council meeting.
The current process for issuance of Cabaret Licenses is regulated by Chapter 4 of Title 5 of the Emeryville Municipal Code (the “Cabaret Ordinance”). Cabarets are defined by Emeryville Municipal Code (EMC) Section 5-4.02 as:
“…any event or place where live entertainment is provided by or for any patron or guest, including but not limited to: singing, playing music, dancing, acting, holding a fashion show, performing pantomime, performing comedy or other act or performance and to which admission: (1) may be gained by the public generally with or without the payment of a fee or cover charge or the purchase or presentation of a ticket or token; or (2) may be gained by a person without invitation or by anyone who cannot be identified at the time of the issuance of the invitation by the sender.” To establish a Cabaret, a Cabaret License is required. Cabaret Licenses are obtained by submitting a complete application to the Police Department, which reviews the materials and forwards the item for review by the Planning Division of the Community Development Department and other departments. The Police Department then prepares a report to the City Manager on whether the license is recommended to be issued. If the license is recommended to be issued, a report is provided to the City Council and the City Council directs the Police Department as to whether to issue the license.
Cabaret Licenses expire on December 31 of the year in which they are issued, regardless of when the application was submitted and approved, and licensees wishing to continue the activities permitted under the Cabaret License are required to apply for renewal annually. Renewal of a Cabaret License is also subject to the approval of the City Council.
The Cabaret Ordinance also requires that licensees obtain a Conditional Use Permit from the Planning Commission to be eligible for a Cabaret License.
DISCUSSION
In staff’s discussions with businesses interested in activities that would require a Cabaret License, the process to obtain a license has been noted as expensive and time consuming. To address this concern, on May 5, 2020, the City Council adopted a resolution approving the expansion of the Business License Tax and Fire Inspection Fee Rebate Program to include the rebate of Cabaret License fees for independent retail, restaurant and bar businesses. Despite this relief, the process to obtain a Cabaret License remains lengthy, as City Council action is required to issue the licenses. The time required to process an application for a Cabaret License and prepare the report to the City Council is typically four to six weeks.
Furthermore, because all licenses expire annually on December 31, there is a strong disincentive to apply for a Cabaret License later in the calendar year, and City staff must prepare City Council reports for all renewals of Cabaret Licenses between November and December of every year, creating an administrative burden.
Finally, the current Cabaret Ordinance’s requirement for a Conditional Use Permit issued by the Planning Commission does not correspond with the provisions of the Planning Regulations, as the uses described as requiring a Cabaret License do not directly correlate to the uses enumerated in the Planning Regulations that require Conditional Use Permits. Cabaret Licenses are issued to individuals or businesses for a specific term (one year), while Conditional Use Permits run with the land and do not expire.
Considering these shortcomings of the current Cabaret Ordinance, staff has prepared the attached proposed ordinance that makes the following changes:
Removal of the requirement for a Conditional Use Permit Removal of the requirement to submit financial statements as part of an application for a Cabaret License Licenses are issued administratively by the Police Chief or their designee The Police Chief’s denial of an application is subject to appeal to the City Council pursuant to Chapter 4 of Title 1 of the EMC.
Licenses are effective for a term of three, four or five years, at the discretion of the Police Chief.
Removal of the requirement for licensees to initiate operations within 90 days of issuance of a Cabaret License The Police Chief may suspend or revoke a Cabaret License for causes enumerated in the ordinance Suspension or revocation of licenses is effective immediately upon serving notice to the licensee and subject to appeal to the City Council pursuant to Chapter 4 of Title 1 of the EMC.
Existing active Cabaret Licenses are extended to March 31, 2023 (rather than expiring on December 31, 2022), to allow time for current licensees to apply under the amended ordinance
FISCAL IMPACT
It is anticipated that the amended ordinance would have a positive fiscal impact by reducing the amount of staff resources required to process applications for Cabaret Licenses because the licenses would not require the preparation of reports to the City Council, nor would renewal applications be required to be processed annually. These savings in staff time could be partially offset by increased interest from businesses in applying for Cabaret Licenses, therefore the precise fiscal benefit that would result from the amended ordinance is unknown.
STAFF COMMUNICATION WITH THE PUBLIC
An overview of the proposed changes was presented to the Economic Development Advisory Committee (“EDAC”) on September 21, 2022. The EDAC voted unanimously to recommend that the City Council adopt the ordinance amendment.
As noted above, the draft ordinance is scheduled to be reviewed by the Budget and Governance Committee of the City Council on October 13, 2022.
CONFLICT OF INTEREST
None.
CONCLUSION
Staff recommends that the City Council adopt the first reading of the attached ordinance amending Chapter 4 of Title 5 of the EMC.
PREPARED BY: Chadrick Smalley, Deputy Director of Community Development
APPROVED AND FORWARDED TO THE
CITY COUNCIL OF THE CITY OF EMERYVILLE:
Adam Politzer, Interim City Manager
ATTACHMENTS
Proposed Ordinance
As indicated above, the Budget and Governance Committee may make recommendations not reflected here that will be reported to the Council.
Ordinance Amending Chapter 4 of Title 5: Cabarets and Dances City Council Meeting | October 18, 2022
City of Emeryville
CALIFORNIA
MEMORANDUM