Agenda packet — Lancaster City Council, October 11, 2022 (part 3 of 4)

Section 3. The City Clerk is authorized and directed to prepare and transmit a notice of availability of the Property to the entities entitled to such notice, as and to the extent required by the Act.

Section 4. The City Manager, or his or her designee, is authorized to do all things that he or she deems necessary or proper to effectuate the purposes of this Resolution, and any such actions previously taken are hereby ratified and confirmed. Such actions include, but are not limited to, negotiating in good faith in accordance with and subject to the requirements of the Act with any entities that timely submit a written notice of interest to purchase or lease the Resolution No. 22-53

Page 2 ends

Property.

Section 5. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

PASSED, APPROVED and ADOPTED this 11th day of October, 2022, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST: APPROVED:
______________________________ _________________________ ANDREA ALEXANDER R. REX PARRIS
City Clerk Mayor
City of Lancaster City of Lancaster

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss

CITY OF LANCASTER )

CERTIFICATION OF RESOLUTION

CITY COUNCIL
I, ___________________________, __________________________, City of Lancaster, CA. do hereby certify that this is a true and correct copy of the original Resolution No. 22-53, for which the original is on file in my office.

WITNESS MY HAND AND THE SEAL OF THE CITY OF LANCASTER, on this _______, day of ___________________________, __________. (seal)
_________________________
Exhibit A
Declaration of Surplus Land
10/11/2022
APN Zoning
General Plan
Designation Acreage Current Use
3130-032-903 LI LI 0.78 Vacant
3138-012-900 TOD-EC MU 0.057 Vacant
3138-020-904 TOD-EC MU 0.057 Vacant
3138-021-913 TOD-EC MU 0.057 Vacant
3138-032-900 TOD-EC MU 0.057 Vacant
3138-034-911 TOD-EC MU 0.057 Vacant
3138-034-912 TOD-EC MU 0.057 Vacant
3138-034-913 TOD-EC MU 0.057 Vacant
3138-034-915 TOD-EC MU 0.057 Vacant
3138-035-901 TOD-EC MU 0.057 Vacant
3138-035-902 TOD-EC MU 0.057 Vacant
3125-010-915 PK O 5.2 Parking
3153-015-958 CPD C 2.99 Vacant
3153-015-959 CPD C 3.93 Vacant

STAFF REPORT
City of Lancaster
CC 10
10/11/2022
JC
Date: October 11, 2022
To: Mayor Parris and City Council Members
From: Sonya Patterson, Director of Parks, Arts, Recreation, and Community Services Subject: Professional Services Agreement for Public Art Installation – Superbloom! by Creative Machines, Joe O'Connell
Recommendation:
a. Approve the proposed public art installation “Superbloom!” by Joe O’Connell to be installed at Lancaster Boulevard and 10th Street West pocket park; and b. Authorize the City Manager, or his designee, to sign all agreements and associated documents.

Fiscal Impact:
$250,000; sufficient funds are available in Capital Improvement Budget account 101-13ZZ006.

Background:

The City adopted a Public Art Policy on November 13, 2018. Since the adoption, city staff have facilitated the installation of over fifty-six (56) public art murals through the bi-annual Antelope Valley Walls (formerly POW!WOW! AV), as well as the installation of four (4) crosswalk murals, art in three (3) roundabouts, three (3) educational exhibits in Prime Desert Woodland, and two (2) sculptures in front of MOAH. As part of the FY23 Budget, City Council approved $525,000 in Capital Improvement Funds to further the investment in Public Art.

Joe O’Connell’s “Superbloom!” is the proposed public art installation on the corner of Lancaster BLVD and 10th Street West. The City was introduced to the work of Joe O’Connell of Creative Machines during the RFQ process for the Avenue M overpass project. O’Connell’s work was the runner up for the Avenue M Project as his design was considered a better match for a pedestrian friendly space. After reviewing appropriate public spaces within the City during an evaluation for future public art, it was determined that an installation engaging the community would work well on the corner of Lancaster Boulevard and 10th Street West. O’Connell’s “Superbloom!” installation is inspired by the area’s annual wildflowers and celebrates the growth and diversity of the community and will provide a vibrant public art piece in the downtown BLVD corridor.

Due to the specialization of public art, the proposed project will be awarded by “piggy backing” off RFQ 725-20. O’Connell participated in the RFQ process, submitting “Superbloom!.” His project was determined to best meet the city design requirements for the public art project at Lancaster Boulevard and 10th Street West.

SP:ac
Attachment:

Agreement for Professional Services
Superbloom Conceptual Design
- 1 -
Professional Services Agreement

AGREEMENT FOR PROFESSIONAL SERVICES
THIS AGREEMENT FOR PROFESSIONAL SERVICES is made and entered into this 11th day of October, 2022 by and between the CITY OF LANCASTER, a municipal corporation and charter city, (“City”), and Creative Machines, an Arizona Corporation (“Consultant”) (collectively, sometimes referred to hereinafter as the “Parties”).

RECITALS
WHEREAS, the City desires to engage Consultant to perform certain technical and professional services, as provided herein, identified as:

Superbloom! Public Art Installation (THE “SERVICES”)
WHEREAS, the principal members of Consultant are qualified and duly registered/licensed under the laws of the State of California, and Consultant desires to accept such engagement; NOW, THEREFORE, the parties agree as follows:

1. Parties to the Agreement.

The parties to this Agreement are:

A. CITY: City of Lancaster
B. CONSULTANT: Joe O’Connell, Creative Machines

2. Notices. All written notices required by or related to this Agreement shall be sent by Certified Mail, Return Receipt Requested, postage prepaid and addressed as listed below. Neither party to this Agreement shall refuse to accept such mail; parties to this Agreement shall promptly inform the other party of any changes of address. All notices required by this Agreement are effective on the day of receipt, unless otherwise indicated herein.

CITY City of Lancaster
Attn: Jason Caudle, City Manager
44933 North Fern Avenue
Lancaster, California 93534
CONSULTANT Creative Machines
Attn: Joe O’Connell
4141 E. Irvington Rd
Tucson, AZ 85714

3. Successors and Assigns. The terms hereof shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto; provided, however, that no party hereto shall assign any of the benefits and burdens hereunder, whether voluntarily or by operation of law, without prior written consent of the other party, and any such assignments without said consent shall be void. - 2 -
Professional Services Agreement

4. Description of Work. The City hereby engages Consultant, and Consultant accepts such engagement, to perform the technical and professional services set forth in the “Scope of Services and Rates Schedule,” attached hereto as Exhibit “A” and incorporated herein by reference. Consultant shall perform and complete, in a manner satisfactory to the City, all work and services set forth in Exhibit “A.” The City Manager or his designee shall have the right to review and inspect the work during the course of its performance at such times as may be specified by the City Manager, or his designee.

5. Obligations of the City.

A. The City shall pay Consultant an amount not to exceed $250,000 for all work necessary to complete the Services, as described in the Scope of Services and Rates Schedule.

B. No payment made hereunder by the City to Consultant, other than the final payment, shall be construed as an acceptance by the City of any work or materials, nor as evidence of satisfactory performance by Consultant of its obligations under this Agreement.

6. Obligations of the Consultant.

A. Consultant shall perform as required by this Agreement and in accordance with the Scope of Services and Rates Schedule set forth in Exhibit A.

B. Consultant shall be responsible for payment of all employees’ wages and benefits, and shall comply with all requirements pertaining to employer’s liability, workers’ compensation, unemployment insurance, and Social Security.

C. Consultant shall not subcontract any of the work required to perform the Services without the express prior written approval of the City.

7. Hold Harmless and Indemnification. Consultant agrees to indemnify and hold harmless the City, its elected officials, officers and employees, from and against any and all third-party claims, losses, obligations, or liabilities whatsoever, including reasonable attorney’s fees, incurred to the extent arising out of or related to Consultant’s negligent or willful wrongful acts, errors or omissions, or those of its employees or agents. Consultant agrees to defend the City, its officers and employees, using counsel of the City’s choosing, from and against any and all claims covered by the indemnity in the preceding sentence.

8. Amendments. Any amendment, modification, or variation from the terms of this Agreement shall be in writing and shall be effective only upon mutual written approval by the City and Consultant.

9. Non-Discrimination and Equal Employment Opportunity.

A. In the performance of this Agreement, Consultant shall not discriminate against any employee, subcontractor, or applicant for employment because of race, color, religion, ancestry, sex, national origin, physical or mental disability or age. Consultant will take affirmative action to ensure that subcontractors and applicants are employed, and that employees are treated during employment without - 3 -
Professional Services Agreement
regard to their race, color, religion, ancestry, sex, national origin, physical or mental disability or age.

Affirmative action relating to employment shall include, but not be limited to the following: employment, upgrading, demotion or transfer; recruitment; layoff or termination; rates of pay or other forms of compensation; and selection for training including apprenticeship.

B. The provisions of subsection A above shall be included in all solicitations or advertisements placed by or on behalf of Consultant for personnel to perform any services under this Agreement. The City shall have access to all documents, data and records of Consultant and its subcontractors for purposes of determining compliance with the equal employment opportunity and nondiscrimination provisions of this Section.

10. Term; Effective Date. This Agreement shall become effective and shall be in full force and effect upon the execution of the Agreement by the City and the Consultant. This Agreement shall continue in full force and effect for twelve (12) months, unless the Agreement is sooner terminated in accordance with this Agreement; provided, however, that the City and the Consultant may mutually agree in writing to extend the Term of this Agreement.

11. Termination.

A. For Convenience. The City may terminate this Agreement at any time without cause by giving thirty (30) days written notice to the other party of such termination and specifying the effective date thereof. In the event of termination of this Agreement, Consultant will be paid for work completed through the date of termination within thirty (30) days following submittal of a final invoice.

B. For Cause. If Consultant fails to perform the services called for by this Agreement or so fails to make progress as to endanger performance of this Agreement in accordance with its terms, Consultant shall correct such failure within ten (10) days (or such longer period that the City may authorize in writing) after receipt of notice from the City specifying such failure. Should the failure not be corrected within this time period, the City may immediately terminate the Agreement by written notice to Consultant.

C. In the event of termination, whether for convenience or cause, reports, plans, studies and other documents (collectively, “documents”) related to the Services shall become the City’s property. Consultant shall provide all documents to the City that have not yet been within ten (10) calendar days after termination of the Agreement.

12. Independent Contractor. Consultant is an independent contractor and shall have no power or authority to incur any debt, obligation or liability on behalf of the City. It is expressly understood between the Parties to this Agreement that no employee/employer relationship is intended.

13. Insurance.

A. The Consultant, at its expense, shall maintain in effect at all times during the term of this Agreement the following coverage and limits of insurance, which shall be maintained with insurers listed “A-, VIII” or better in the Best’s Key Rating Guide:
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Professional Services Agreement
Commercial General Liability
Each Occurrence $1,000,000
Per Project General Aggregate $2,000,000
Including Products/Completed Operations; Contractual Liability/Independent Contractors; Property Damage
(Coverage shall be at least as broad as ISO form CG2010 11/85 or CG2010 07/04 and CG2037 07/04 combined, or an equivalent providing ongoing and completed operations) Commercial Automobile Liability
Combined Single Limit per Accident for
Bodily Injury and Property Damage $1,000,000
(Coverage shall be at least as broad as ISO form CA00 01) Workers Compensation
As Required by the State of California Statutory Limits Employers’ Liability
Each Accident $1,000,000
Bodily Injury by Disease $1,000,000
Each Employee $1,000,000
(A Waiver of Subrogation must be provided on behalf of the Certificate Holder for the Workers Compensation & Employers’ Liability policies)
Professional Liability
Each Occurrence $1,000,000
General Aggregate $1,000,000
B. The Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insured’s liability.

C. Professional liability and/or cyber insurance written on a “claims made” basis must be renewed for a period of three (3) years after this contract expires or is terminated. Such insurance must have the same coverage and limits as the policy that was in effect during the term of this contract and will cover Consultant for all claims made by the City insured entities arising out of any acts or omissions of Consultant or its officers, employees, or agents during the time this Agreement was in effect.

D. Any deductibles or self-insurance retentions must be declared and approved by the City. At the City’s option, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City insured entities or the insurer shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses.

E. All insurance shall be primary and non-contributory as respects the City insured entities. Any insurance or self-insurance maintained by the City insured entities shall be in excess of the Consultant’s insurance and shall not contribute with it.

F. Consultant shall name the City, its elected officials, officers, employees and volunteers as additional insured, and shall furnish the City with Certificates of Insurance and with original - 5 -
Professional Services Agreement
endorsements effecting coverage required by this Agreement. Certificates of Insurance shall meet the following requirements:
(1) Show that the insurance policy has been endorsed to state that coverage shall not be suspended, voided, cancelled, reduced in coverage or in limits except after 30 days’ prior written notice (10 days’ written notice for non-payment) to the City of Lancaster.
(2) List in the “Descriptions of Operations/Locations/Vehicles” section:
“Superbloom! 2022/2023”
The City of Lancaster, its elected officials, officers, employees and volunteers are included as additional covered parties, but only insofar as the operations under this contract are concerned.”
(3) List in the “Certificate Holder” section:

The City of Lancaster, 44933 Fern Avenue, Lancaster, California 93534.

14. Ownership of Documents. All plans, specifications, reports, studies, maps and other documents prepared or obtained by Consultant in the course of performing the work and are required by this Agreement to be delivered to the City shall be the property of the City. Basic sketches, charts, computations and similar data prepared or obtained by Consultant under this Agreement shall, upon request, be made available to City without restriction or limitation on their use.

15. Data Provided to Consultant. City shall provide to Consultant, without charge, all data, including reports, records, maps and other information, now in the City’s possession which may facilitate the timely performance of the work described in Exhibit A.

16. Consultant’s Warranties and Representations.

Consultant warrants and represents to City as follows:

A. Consultant has not employed or retained any person or entity, other than a bona fide employee working exclusively for Consultant, to solicit or obtain this Agreement.

B. Consultant has not paid or agreed to pay any person or entity, other than a bona fide employee working exclusively for Consultant, any fee, commission, percentage, gift, or any other consideration contingent upon or resulting from the execution of this Agreement. Upon any breach or violation of this warranty, City shall have the right, in its sole discretion, to terminate this Agreement without further liability, or, in the alternative, to deduct from any sums payable hereunder the full amount or value of any such fee, commission, percentage or gift.

C. Consultant has no knowledge that any officer or employee of the City has any interest, whether contractual, noncontractual, financial, proprietary, or otherwise, in this transaction or in the business of the Consultant, and that if any such interest comes to the knowledge of Consultant at any time, a complete written disclosure of such interest will be made to City, even if such interest would not be deemed a prohibited “conflict of interest” under applicable laws. - 6 -
Professional Services Agreement
D. Upon the execution of this Agreement, Consultant has no interest, direct or indirect, in any transaction or business entity which would conflict with or in any manner hinder the performance of services and work required by this Agreement, nor shall any such interest be acquired during the term of this Agreement.

17. Resolution of Disputes.

A. Disputes regarding the interpretation or application of any provisions of this Agreement shall, to the extent reasonably feasible, be resolved through good faith negotiations between the parties.

B. If the parties cannot resolve the dispute through good faith negotiations, either party may give Notice of Dispute to the other party. The Notice of Dispute shall state the nature of the dispute and the corrective action necessary to remedy the dispute.

After Notice of Dispute, the parties shall first attempt to resolve any disputes by mediation. The parties shall agree on a single mediator. Mediation shall be conducted in Lancaster, California. Each party shall pay its own attorneys’ fees and the costs of mediation shall be split equally between the parties.

If the dispute has not been resolved by mediation within 45 days after Notice of Dispute, or the parties are unable to agree to a mediator, within 15 days after Notice of Dispute, then, the dispute may, upon agreement of the parties be resolved by binding arbitration.

C. If any action at law or in equity is brought to enforce or interpret any provisions of this Agreement, the prevailing party in such action shall be entitled to reasonable attorney’s fees, cost and necessary disbursements, in addition to such other relief as may be sought and awarded.

18. Exhibits.

The following exhibits to which reference is made in this Agreement are deemed incorporated herein in their entirety:

Exhibit “A” Scope of Services and Rates Schedule

20. Governing Law.

This Agreement shall be governed by the laws of the State of California.

21. Effective Date.

This Agreement shall become effective as of the date set forth below on which the last of the parties, whether City or Consultant, executes said Agreement. [Signatures begin on next page.]
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Professional Services Agreement
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and attested by their respective officers thereunto duly authorized.

CITY OF LANCASTER

LANCASTER, CALIFORNIA
By:

Jason Caudle, City Manager
Dated:

Creative Machines
By:

Joe O’Connell
Dated:

ATTEST:

City Clerk
APPROVED AS TO FORM:

City Attorney
- 8 -
Professional Services Agreement

EXHIBIT A

SCOPE OF SERVICES

AND RATES SCHEDULE
Super Bloom Scope of Work
Creative Machines
• Concept Design of sculptures
• Schematic Design of sculptures and layout in “Triangle Park” • Create schematic drawing with dimensions, color choices, material specifications for client review and approval
• Provide final loads and reactions for client to design and fabricate footing • Detail Design Development
• Create detail drawing packet with technical details and material specifications • Provide stamped drawings and structural calculations by California-licensed structural engineer • Submit engineered design packet to client for review and approval • Structural fabrication of the artwork
• Provide template for Client to cast anchors in place
• Properly package the artwork for shipment
• Provide Client with all specifications required for installation of the artwork including specifications for unloading and staging area(s)
• Provide schedule for installation
• Travel of installation team to site including transportation and lodging • Shipping of the artwork to site
• Unloading of truck(s)
• Rental of boom lift, scissor lift, and reach forklift as necessary to unload truck from safe location on site or immediately adjacent to site and install artwork • Perform installation of the artwork
• Move dunnage from the artwork to dumpster on site
• Provide project/maintenance manual
• Provide one-year warranty (see warranty statement)
City
• Prompt feedback to questions and design submittals
• Coordinate with Artist including providing Artist with site specifications and drawings such as site plan, wind criteria, code information, and soils report • Obtain all permits related to art, including but not limited to, footing construction, unloading, and art installation
• Provide all infrastructure for the artwork prior to artwork arrival on site - 9 -
Professional Services Agreement
• Design and engineer footing and construction of footing including casting receiver tubes in place with template provided by Creative Machines
• Design, engineer, and construct all landscape and hardscape • Provide safe location on site or immediately adjacent to site for unloading and staging area during art installation
• Provide site access and access to electricity (to power tools) and water (to clean artwork.) • Provide dumpster to dispose of crates, shipping stands, pallets, trash, and packing materials. • Secure installation site during unloading and installation including providing all necessary street closures, permits, cones, barriers, temporary fencing, and/or site security personnel based on specifications from Creative Machines.
• Protect landscape and hardscape during artwork installation.

Rates Schedule
Contract Signing 10% $25,000.00
Engineered Design Complete 25% $62,500.00
Fabrication 50% Complete 25% $62,500.00
Fabrication 100% Complete 25% $62,500.00
Artwork Ships 5% $12,500.00
Installation Complete 10% $25,000.00
Total $250,000.00
JOE O’CONNELL CREATIVE MACHINES +
Superbloom!
Art for the Triangle Park at 1004 W. Lancaster Blvd., City of Lancaster Superbloom! is inspired by annual wildflower blooms.

The concept of a superbloom also refers to the explosion of vitality in the region.

• Concept Design of sculptures,
including layout specific to three
site options
• Schematic Design of sculptures
and layout for one selected site
• Create schematic drawing with
dimensions, color choices,
material specifications for
client review and approval
• Provide final loads and reactions
for client to design and fabricate
footing
• Detail Design Development
• Create detail drawing packet with
technical details and material
specifications
• Provide stamped drawings and
structural calculations by
California-licensed structural
engineer
• Submit engineered design packet
to client for review and approval
• Structural fabrication of the
artwork
• Provide template for Client to cast
anchors in place
• Properly package the artwork for
shipment
• Prompt feedback to questions and
design submittals
• Coordinate with Artist including
providing Artist with site
specifications and drawings such
as site plan, wind criteria, code
information, and soils report
• Obtain all permits related to art,
including but not limited to,
footing construction, unloading,
and art installation
• Provide all infrastructure for the
artwork prior to artwork arrival
on site
• Design and engineer footing and
construction of footing including
casting receiver tubes in place
with template provided by Creative
Machines
• Design, engineer, and construct
all landscape and hardscape
• Provide location for unloading
and staging area during art
installation
• Provide site access and access to
electricity (to power tools) and
water (to clean artwork.)
• Provide dumpster to dispose of
crates, shipping stands, pallets,
trash, and packing materials.

SCOPE OF WORK

CREATIVE MACHINES CLIENT
• Provide Client with all
specifications required for
installation of the artwork
• Provide schedule for installation
• Travel of installation team to site
• Shipping of the artwork to site
• Perform installation of the artwork
• Move dunnage from the artwork
to dumpster on site
• Provide project/maintenance
manual
• Provide one year warranty (see
warranty statement)
• Secure installation site including
providing all necessary street
closures, permits, cones, barriers,
and/or site security personnel.
• Protect landscape and hardscape
during artwork installation.

BUDGETS
SEPTEMBER 12, 2022
Ten Blooms as shown in Renderings on Previous Pages $250,000 SITE: TRIANGLE PARK AT 1004 WEST LANCASTER NOTE ABOUT UNFORESEEN EXPENSES We are an experienced firm with several architects and engineers on staff. We have carefully reviewed all available information on the site.

We have drawn upon our 30+ public art projects to estimate what we can offer. Nevertheless, we recognize that this project depends upon elements outside of our control such as site-specific requirements, material price fluctuations and potential delays in the City approval process. Therefore we reserve the right to modify the shape, size, lighting or other aspects of the design as new information that affects pricing becomes available.

WARRANTY
We aim to please when it comes to our public art reputation. Our fabrication process includes full prototyping and testing before we use any techniques in a public project.

If artist-created parts need replacement within 12 months of installation due to design or fabrication failure, send a photograph of the area to Creative Machines, and we will send a replacement part free of charge.

Warranty begins at complete acceptance of work and covers 12 months.

After 12 months, or for damage due to vandalism or acts of God, we will supply replacement parts at the cost of time, materials and shipping. We encourage you to replace standard parts yourself. We always provide complete product descriptions and details in our manual.

THANK YOU FOR YOUR CONSIDERATION
Creative Machines 4141 E. Irvington Rd., Tucson, AZ 85714 p: 520.294.0939 www.creativemachines.com

STAFF REPORT
City of Lancaster
CC 11
10/11/2022
JC
Date: October 11, 2022
To: Mayor Parris and City Council Members
From: Sonya Patterson, Director – Parks, Arts, Recreation & Community Services Subject: SBA Cell Tower Expansion at Tierra Bonita Park Recommendation:

1. Approve a 12-year lease extension and expansion of SBA Steel LLC, a Florida limited liability company, at Tierra Bonita Park, also known as cell tower #CA 45713-A, with the terms to run concurrently with the existing ground lease expiring 9/28/2034, and 100 square feet of additional space for the placement of a generator required for the second tower tenant, Dish Network.

2. Accept a 50% revenue share for the second tower tenant, approximately $800, in additional monthly revenue above existing revenue to account 101-3402-100.

3. Authorize the City Manager or his designee to sign in substantially the form attached with non-substantive changes approved by the City Attorney.

Fiscal Impact:

Increase FY23 revenue by approximately $9,600 over 12 months with the 2nd colocation on the tower. The current monthly revenue and an annual CPI escalation that shall not be less than 3% nor more than 5% of the current rent per year will remain in effect.

Background:

Founded in 1989, SBA Communications Corporation (SBA) is a leading independent owner and operator of wireless communications infrastructure, including a cell tower located at Tierra Bonita Park, 44910 27th Street East, Lancaster, CA 93535.

The amendment will approve an additional one hundred (100) square feet of ground space for a total of 706 square feet at the park to add a generator required for the colocation of the second tower tenant and revenue sharing to begin.

Except as specifically outlined in the second amendment, the agreement is otherwise unmodified and remains in full force.

SP:ac
Attachment:

Amendment to Communications Site Lease Agreement
Proposed Dish Location
00596533 - v2 CA45713-A/Tierra Bonita 1
Prepared by: Catherine Hutchison
After recording return to: Rita Drinkwater
SBA Network Services, LLC
8051 Congress Avenue
Boca Raton, FL 33487
Ph: 800-487-7483 ext. 7872
Parcel ID: 3150-024-900

SECOND AMENDMENT TO COMMUNICATIONS SITE LEASE AGREEMENT (GROUND)

THIS SECOND AMENDMENT TO COMMUNICATIONS SITE LEASE
AGREEMENT (GROUND) ("Second Amendment") is executed this ______ day of _____________, 2022 (“Effective Date”) by and between THE CITY OF LANCASTER, a municipal corporation, having an address at 44933 Fern Avenue, Lancaster, CA 95321-2461 ("Lessor") and SBA STEEL LLC, a Florida limited liability company, having a principal office located at 8051 Congress Avenue, Boca Raton, FL 33487-1307 ("Lessee").

WHEREAS, Lessor and Nextel of California, Inc., a Delaware corporation, d/b/a Nextel Communications, entered into that certain Communications Site Lease Agreement (Ground) dated August 17, 2004, as evidenced by that certain Memorandum of Agreement dated May 4, 2009 and recorded May 22, 2009, as Instrument Number 20090763227 (collectively, “Agreement”) and ultimately assigned to Lessee, as evidenced by that certain Memorandum of Assignment dated April 18, 2013 and recorded April 21, 2014, as Instrument Number 20140401535; both recordings of the Official Records of Los Angeles County, California, as amended and assigned from time to time for Lessee’s use of a portion of the real property ("Premises") located at 44910 N. 27th Street E., Lancaster, CA 93535 (“Land”), being more particularly described in the attached Exhibit “A”; and WHEREAS, Lessor and Lessee desire and intend to amend and supplement the Agreement as provided herein.
00596533 - v2 CA45713-A/Tierra Bonita 2
NOW, THEREFORE, for good and valuable consideration of One Hundred and No/100 Dollars ($100.00), the receipt and sufficiency of which is hereby acknowledged, the parties hereto covenant, agree and bind themselves to the following modifications to the Agreement:

1. Section 1. Premises, of the Agreement is hereby amended as follows:

Lessor hereby leases to Lessee an additional one hundred (100) square feet of ground space (“Expanded Premises”) for a total ground space of approximately seven hundred and six (706) square feet of ground space as described in Exhibit “B”. The Expanded Premises shall also be referred to as Premises unless otherwise specified. This legal description shall replace the existing legal description of the Premises for all purposes under the Agreement. Lessor and Lessee agree that the revised Premises legal description with access and utility easements may be substituted with a survey as soon as it becomes available.

2. The Premises as referenced in Exhibit “B” of the Agreement is hereby deleted in its entirety and replaced with Exhibit “B” attached hereto and made a part hereof.

3. Section 5. Rent, of the Agreement is hereby amended to include subsection (c) as follows:
(c) As consideration for the Expanded Premises, Lessor shall receive an additional fifty percent (50%) monthly revenue sharing (“Revenue Share”) beginning with the second (2nd) sublessee. Revenue Share shall only be effective for broadband telephony sublessees, including but not limited to, PCS providers such as AT&T, Verizon, and T-Mobile using the Expanded Premises. Notwithstanding the foregoing, all Revenue Share contained herein shall be payable one month in arrears upon Lessee’s receipt of rental payment from its sublessees. In the event the first (1st) sublessee is no longer a sublessee on the Expanded Premises, the second (2nd) sublessee who collocated on the Expanded Premises will take the place of the first (1st) sublessee for purposes of being excluded from the Revenue Share provisions of this section. In no event shall any Revenue Share be paid if there are fewer than two (2) sublessees. The Revenue Share shall be due upon the commencement of any construction activities at the Expanded Premises by Lessee or any of Lessee’s sublessees.

However, in the event that Lessee is unable to secure or maintain a sublease for the Expanded Premises, commencement of construction activities at the Expanded Premises by Lessee or any of lessee’s sublessees does not occur, or if Lessee is unable to obtain or maintain, through no fault of Lessee, any license, permit, or other governmental approval necessary for the construction 00596533 - v2 CA45713-A/Tierra Bonita 3
and operation of the structures related to the use of the Expanded Premises, the aforementioned Revenue Share shall not be due and payable.

4. Capitalized terms not defined in this Second Amendment will have the meaning ascribed to such terms in the Agreement.

5. This Second Amendment will be governed by and construed and enforced in accordance with the laws of the state in which the Land is located without regard to principles of conflicts of law.

6. Except as specifically set forth in this Second Amendment, the Agreement is otherwise unmodified and remains in full force and effect and is hereby ratified and reaffirmed. In the event of any inconsistencies between the Agreement and this Second Amendment, the terms of this Second Amendment shall take precedence.

7. Lessor acknowledges that Exhibit “A” and Exhibit “B” may be preliminary or incomplete and, accordingly, Lessee may replace and substitute each exhibit with an accurate survey and legal descriptions of the Premises and re-record this Second Amendment with Lessor’s written consent, which consent shall not be unreasonably withheld, condition, or delayed. Following such re-recording, the description of the Premises described therein shall serve as the descriptions for same for all purposes under the Agreement.

8. Lessor represents and warrants to Lessee that Lessor is the sole owner in fee simple title to the Land and Lessor’s interest under the Agreement and that consent or approval of no other person is necessary for Lessor to enter into this Second Amendment.

9. This Second Amendment may be executed in one or more counterparts, and by the different parties hereto in separate counterparts, each of which when executed shall be deemed to be an original but all of which taken together shall constitute one and the same Second Amendment.

10. Lessee shall have the right to record this Second Amendment. [The remainder of this page is intentionally left blank. Signatures to follow.] 00596533 - v2 CA45713-A/Tierra Bonita 4
IN WITNESS WHEREOF, the parties have executed this Second Amendment as of the day and year first above written.

WITNESSES:

The City Of Lancaster a Florida limited
liability company
___________________________________
Print Name:__________________________
___________________________________
Print Name:__________________________
LESSOR:

The City of Lancaster, a municipal
corporation
By: _________________________________
Name: ______________________________
Title: _______________________________
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA )
)ss
COUNTY OF ____________)
On the _____ day of ____________________________, 2022,before me,__________________________________ , a Notary Public, personally appeared _________________________________ as ____________________ of The City of Lancaster, a municipal corporation, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.
______________________________________
Notary Public___________________________
(NOTARY SEAL)
00596533 - v2 CA45713-A/Tierra Bonita 5
WITNESSES:

SBA Steel LLC, a Florida limited liability
company
___________________________________
Print Name:__________________________
___________________________________
Print Name:__________________________
LESSEE:

SBA Steel LLC, a Florida limited liability
company
By: _________________________________
Martin Aljovin
Vice President - Asset Optimization

STATE OF FLORIDA

COUNTY OF PALM BEACH
The foregoing instrument was acknowledged before me by means of [X] physical presence or [ ] online notarization, this _____ day of ____________, 2022, by Martin Aljovin, Vice President - Asset Optimization of SBA Steel LLC, a Florida limited liability company, on behalf of the company, who is personally known to me and did not take an oath.
______________________________________
Notary Public___________________________
My Commission Expires__________________
(NOTARY SEAL)
00596533 - v2 CA45713-A/Tierra Bonita 6
EXHIBIT “A”
Land
PARENT PARCEL DESCRIPTION (AS PROVIDED):

SITUATED IN THE CITY OF LANCASTER, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA:

THE NORTH HALF OF THE SOUTHEAST QUARTER OF THE NORTHEAST QUARTER OF SECTION 18, TOWNSHIP 7 NORTH, RANGE 11 WEST, S.B.M., IN THE CITY OF LANCASTER, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA.

TAX I.D. NUMBER: 3150-024-900

BEING THE SAME PROPERTY CONVEYED TO CITY OF LANCASTER, A MUNICIPAL

CORPORATION, GRANTEE, FROM COUNTY OF LOS ANGELES, A BODY

CORPORATE AND POLITIC, GRANTOR, BY QUITCLAIM DEED RECORDED 01/20/1981, AS INSTRUMENT NO. 81-69491 OF THE LOS ANGELES COUNTY RECORDS.
00596533 - v2 CA45713-A/Tierra Bonita 7
EXHIBIT “B”
Premises
ORIGINAL LEASE AREA #1 (AS SURVEYED):

Situated in the City of Lancaster, County of Los Angeles, State of California. Known as being a part of the North Half of the Southeast Quarter of the Northeast Quarter of Section 18, Township 7 North, Range 11 West, S.B.M., and being a 36 square foot Original Lease Area #1 over and upon a parcel of land now or formerly conveyed to the City of Lancaster, a municipal corporation, as recorded in Instrument No. 81-69491 of Los Angeles County Records, and being more particularly described as follows:

The Original Lease Area #1 contains 0.001 acres, or 36 square feet, of land. 00596533 - v2 CA45713-A/Tierra Bonita 8
ORIGINAL LEASE AREA #2 (AS SURVEYED):

Situated in the City of Lancaster, County of Los Angeles, State of California. Known as being a part of the North Half of the Southeast Quarter of the Northeast Quarter of Section 18, Township 7 North, Range 11 West, S.B.M., and being a 570 square foot Original Lease Area #2 over and upon a parcel of land now or formerly conveyed to the City of Lancaster, a municipal corporation, as recorded in Instrument No. 81-69491 of Los Angeles County Records, and being more particularly described as follows:

The Original Lease Area #2 contains 0.013 acres, or 570 square feet, of land. 00596533 - v2 CA45713-A/Tierra Bonita 9
LEASE EXPANSION AREA (AS SURVEYED):

Situated in the City of Lancaster, County of Los Angeles, State of California. Known as being a part of the North Half of the Southeast Quarter of the Northeast Quarter of Section 18, Township 7 North, Range 11 West, S.B.M., and being a 100 square foot Lease Expansion Area over and upon a parcel of land now or formerly conveyed to the City of Lancaster, a municipal corporation, as recorded in Instrument No. 81-69491 of Los Angeles County Records, and being more particularly described as follows:

The Lease Expansion Area contains 0.002 acres, or 100 square feet, of land. 00596533 - v2 CA45713-A/Tierra Bonita 10

VARIABLE WIDTH NON-EXCLUSIVE ACCESS & UTILITY EASEMENT (AS

SURVEYED)
Situated in the City of Lancaster, County of Los Angeles, State of California. Known as being a part of the North Half of the Southeast Quarter of the Northeast Quarter of Section 18, Township 7 North, Range 11 West, S.B.M., and being a 24,107 square foot Variable Width Non-Exclusive Access & Utility Easement over and upon a parcel of land now or formerly conveyed to the City of Lancaster, a municipal corporation, as recorded in Instrument No. 81-69491 of Los Angeles County Records, and being more particularly described as follows:

COMMENCING at a spike and washer found (LS #7669) at the centerline intersection of 27th Street and Kettering Street, said point also being the NW Corner of said Southeast Quarter of the Northeast Quarter, Section 18, Township 7 North, Range 11 West, S.B.M.; Thence along said centerline of 27th Street, South 00°23'45" East a distance of 559.15 feet; Thence leaving said centerline, North 89°36'15" East a distance of 20.00 feet to a point on the easterly right-of-way of said 27th Street and the POINT OF BEGINNING; Thence leaving said easterly right-of-way, North 89°36'15" East a distance of 37.02 feet; Thence along the arc of a curve to the right, said curve having a radius of 40.00 feet, an arc length of 63.03 feet, and a chord bearing of South 45°32'10" East, a distance of 56.71 feet; Thence South 00°23'45" East a distance of 8.19 feet;
Thence along the arc of a curve to the left, said curve having a radius of 20.00 feet, an arc length of 31.63 feet, and a chord bearing of South 45°41'49" East, a distance of 28.43 feet; Thence North 89°00'08" East a distance of 576.03 feet;
Thence along the arc of a curve to the left, said curve having a radius of 20.00 feet, an arc length of 31.21 feet, and a chord bearing of North 44°18'11" East, a distance of 28.14 feet; Thence North 00°23'45" West a distance of 157.36 feet;
Thence North 40°03'18" East a distance of 97.70 feet;
Thence North 14°43'33" West a distance of 174.41 feet;
Thence North 34°09'35" West a distance of 76.58 feet;
Thence North 50°13'08" West a distance of 38.00 feet;
Thence South 39°46'52" West a distance of 15.00 feet;
Thence North 55°14'41" West a distance of 9.98 feet;
Thence North 33°41'14" East a distance of 10.00 feet;
Thence North 56°18'46" West a distance of 10.00 feet;
Thence North 69°00'21" West a distance of 83.47 feet;
Thence North 21°46'06" East a distance of 8.00 feet;
Thence South 69°00'21" East a distance of 119.24 feet;
Thence South 50°13'08" East a distance of 28.77 feet;
Thence South 34°09'35" East a distance of 80.83 feet;
Thence South 14°43'33" East a distance of 182.68 feet;
Thence South 40°03'18" West a distance of 87.16 feet;
Thence South 00°23'45" East a distance of 162.32 feet;
00596533 - v2 CA45713-A/Tierra Bonita 11
Thence along the arc of a curve to the right, said curve having a radius of 40.00 feet, an arc length of 62.41 feet, and a chord bearing of South 44°18'11" West, a distance of 56.27 feet; Thence South 89°00'08" West a distance of 576.03 feet;
Thence along the arc of a curve to the right, said curve having a radius of 40.00 feet, an arc length of 63.25 feet, and a chord bearing of North 45°41'49" West, a distance of 56.86 feet; Thence North 00°23'45" West a distance of 8.19 feet;
Thence along the arc of a curve to the left, said curve having a radius of 20.00 feet, an arc length of 31.55 feet, and a chord bearing of North 45°35'38" West, a distance of 28.38 feet; Thence South 89°36'15" West a distance of 37.08 feet to a point on said easterly right-of-way of 27th Street;
Thence along said easterly right-of-way, North 00°23'45" West a distance of 20.00 feet to the POINT OF BEGINNING.

The Variable Width Non-Exclusive Access & Utility Easement contains 0.553 acres, or 24,107 square feet, of land.
00596533 - v2 CA45713-A/Tierra Bonita 12
20' WIDE NON-EXCLUSIVE ACCESS EASEMENT (AS SURVEYED)
Situated in the City of Lancaster, County of Los Angeles, State of California. Known as being a part of the North Half of the Southeast Quarter of the Northeast Quarter of Section 18, Township 7 North, Range 11 West, S.B.M., and being a 2,380 square foot 20' Wide Non-Exclusive Access Easement over and upon a parcel of land now or formerly conveyed to the City of Lancaster, a municipal corporation, as recorded in Instrument No. 81-69491 of Los Angeles County Records, and being more particularly described as follows:

The 20' Wide Non-Exclusive Access Easement contains 0.055 acres, or 2,380 square feet, of land.

Tierra Bonita

COMPOUND DRAWING
Eric Nielsen DATE: SITE NUMBER: STATE:
05-23-2022 CA45713-A CA
SBA Communications
[email protected]
Tierra Bonita

COMPOUND DRAWING
Eric Nielsen DATE: SITE NUMBER: STATE:
05-23-2022 CA45713-A CA
SBA Communications
[email protected]
74' SBA Tower
C1
Baseball Field
Park
2'-0"
Not To Scale

STAFF REPORT
City of Lancaster
CC 12
10/11/2022
JC
Date: October 11, 2022
To: Mayor Parris and City Council Members
From: Jeff Hogan, Senior Director - Development Services Marissa Diaz, Senior Manager - Capital Programs
Subject: Construction Award of Bid – PWCP 23-020 – Lancaster Health District Phase 1 LACMTA Project ID# F9131
Recommendation:

Award PWCP 23-020, Lancaster Health District Phase 1 LACMTA Project ID# F9131, to Nationwide Contracting Services, Inc., of Fountain Valley, California, Base Bid Items in the amount of $4,809,287.50 plus a 20% contingency, to install Lancaster Health District (LHD) Phase 1 sewer improvements, storm drain improvements, intersection improvements, and temporary construction access pavement. Authorize the City Manager, or his designee, to sign all documents. This contract is awarded to the lowest responsible bidder per California Public Code Section 22038 (b).

Fiscal Impact:
$5,771,145.00 (including 20% contingency) to be awarded; with these actions, sufficient funds are available in Capital Improvements Budget Account Numbers 203-15ST058-924, 206-15ST058- 924, 207-15ST058-924, 209-15ST058-924, 210-15ST058-924, 211-15ST058-924, 217-15ST058- 924, 232-15ST058-924, 252-15ST058-924, 321-15ST058-924, 480-15ST058-924, and 701- 15ST058-924.

Background:

On March 15, 2019, the City of Lancaster entered into a Funding Agreement with the Los Angeles County Metropolitan Transportation Authority (LACMTA) funded by the LACMTA 2015 Call for Projects authorized by the LACMTA Board of Directors on September 24, 2015. The City was awarded a total grant amount of $12,930,570.00, with a local matching fund requirement of $7,667,828.00. On December 10, 2019, LACMTA approved a Request for Administrative Scope Change for several minor modifications to the proposed roadway configuration resulting in a reduction of the total grant amount of the project to $11,412,757.00, with a total matching fund requirement of $6,767,765.00.

In April 2022, LHD was divided into construction Phase 1 and Phase 2 in order to be able to meet construction scheduling for building permits for Antelope Valley Medical Center (AVMC) and LifePoint Health buildings to be located northeast of 18th Street West and Avenue J-5. Phase 1 located on 17th Street West 100 feet north of Norberry Street to 400 feet south of Avenue J, and west to 18th Street West, and on 18th Street West from Avenue J to Avenue J-5 within existing and proposed right-of-way and sewer easements. The proposed project will include approximately 3,650 feet of sewer pipeline, 2,000 feet of storm drain/box, intersection improvements, and 1,800 of temporary construction access pavement.

This project is funded with Los Angeles County Metropolitan Transportation Authority (LACMTA) Proposition C grant funds in addition to gas tax, SB1, TDA Article 8, Proposition A, Proposition C, Measure R Local Return, Measure M Local Return, Signal Impact fees, Traffic Impact fees, Proposition 42 Congestion Management, Sewer Maintenance District, and Road Bond funds.

Per Section 2.2 of the Existing Community Workforce Agreement (“CWA”), this project is subject to the CWA by and between the City of Lancaster and Los Angeles/Orange Counties Building and Construction Trades Council, and the Signatory Craft Councils and Unions (“CWA”). The PWCP 23-020 contract documents were prepared, and the project was advertised accordingly. Per Section

2.6(b) of the CWA, Letters of Assent shall be submitted by the Contractor and each of its subcontractors, of whatever tier, forty-eight (48) hours prior to commencement of work, or within forty-eight (48) hours after the award of Project Work to that Contractor (or subcontractor), whichever occurs later.

On September 13, 2022, at 11:00 a.m., the City conducted an electronic bid opening for PWCP 23-020 via PlanetBids. Nationwide Contracting Services, Inc., was the lowest responsive responsible bidder amongst five (5) bids. The responsive responsible bids were as follows:

Contractor City Bid Amounts

1. R.C. Becker and Son, Inc. Santa Clarita, CA $ 3,645,668.73 *

2. Nationwide Contracting Services, Inc. Fountain Valley, CA $ 4,809,287.50

3. Sully-Miller Contracting Company Brea, CA $ 4,910,723.78

4. C.A. Rasmussen, Inc. Valencia, CA $ 4,981,014.50

5. Granite Construction Company Lancaster, CA $ 6,636,036.00 Engineer's Estimate $ 3,330,339.70
* In accordance with Public Contract Code 5103, on September 28, 2022, the City accepted a withdrawal of bid from R.C. Becker and Son, Inc.

SN:vw/jr
Attachment:

Vicinity Map

CITY OF LANCASTER
PWCP 23-020 LANCASTER HEALTH DISTRICT
PHASE 1 LACMTA PROJECT ID# F9131

VICINITY MAP

STAFF REPORT
City of Lancaster
CC 13
10/11/2022
JC
Date: October 11, 2022
To: Mayor Parris and City Council Members
From: Jason Caudle, City Manager
George N. Harris II, Director of Finance/IT
Subject: Professional Services Agreement for Consulting Services with Berkeley Research Group for the purpose of creating a Community Finance Lender Recommendation:
a. Award a Professional Services Agreement for Consulting Services to Berkeley Research Group (“BRG”) for the purpose of creating a Community Finance Lender (“CFL”), subject to legal opinion and Department of Financial Protection and Innovation (“DFFI”) approval in the amount of $525,000.
b. Authorize the City Manager or designee to execute such agreement.

Fiscal Impact:
$400,000.00 to be paid from account 101-4200-301. Appropriate from fund balance a total of $400,000.00 to account 101-4200-301. An initial $125,000 was authorized and paid under the authority of the City Manager in Fiscal Year 2021/22.

Background:

The City of Lancaster (the “City” or “Lancaster”) retained Berkeley Research Group (“BRG”) to develop a business plan with the goal of establishing a public bank, subject to California Legislation Assembly Bill 857 (here “AB 857”), to serve its local community development needs (see Appendix 1 for the Statement of Work).

BRG has gone through a strategic review of AB 857 and the City’s position based on information received from the City and BRG’s experience in the space, as well as discussions with relevant parties (see Appendix 2 for AB 857).

Due to the unlikeliness of the FDIC approving a public bank or other such an entity in the near term, along with the high start up cost of a public bank, the City has concluded that a fullyfunctioning public bank may not be the most effective path forward in the near term.

Therefore, BRG proposed to the City to create a Community Finance Lender (“CFL”), subject to legal opinion and Department of Financial Protection and Innovation (“DFFI”) approval, instead of initially establishing a public bank.

A CFL will allow the City to achieve the same primary objective of a public bank, namely, to finance community projects with a lower cost of funds and to secure more rate competitive banking services while maintaining ownership and management control.

After 1 year of operating experience and sound financial performance, the CFL will qualify for certification by the US Treasury as a Community Development Financial Institution (“CDFI”).

Further, the US Treasury has recently announced a moratorium on licensing new CDFIs until Q2, 2023. A CFL allows the City to begin operations until the moratorium is lifted. The CFL can then apply to be a licensed CDFI.

The CFL can begin to operate as a real estate investment vehicle, previously described as a Urban Wealth Fund in multiple prior presentations. The CFL will hold the City’s real assets being held for resale, retain and then reinvest sales proceeds and eventually build a portfolio of assets that can provide leverage for income investments. The CFL will focus on providing a municipal financing alternative to traditional banks to increase capital for local economic development priorities and improve banking access for local small business and other local government agencies. The CFL will be wholly owned by the City with an initial investment to be determined.

The CDFI will support the economic development of communities by providing loans and other forms of investment to institutions with the stated purpose of furthering community economic development. Additionally, a Certified CDFI Qualified Issuer may participate in CDFI Bond Guarantee Program. Under this program, a Certified CDFI Qualified Issuer applies to the CDFI Fund for authorization to issue bonds worth a minimum of $100 million. The CDFI Fund, which is backed by the US Treasury, provided a 100 percent guarantee on these bonds, up to $1 billion per year.

It is staff’s recommendation to begin the path towards a public bank according to the plan drafted by the Consultants at the BRG. BRG holds a wealth of experience in establishing private banks of all types in the State of California. They have experience with the State approval process and have designed the most cost effective and pragmatic approach to ultimately producing a successful and sustainable public bank. Their plan is designed to create creditability and sustainability whereby the fiscal base of the bank grows over time without requiring any substantial government subsidy.

Attachments:

City of Lancaster – Project Plan – DRAFT 093022
BRG – Original SOW
BRG – REVISED Phase 2 SOW

CITY OF LANCASTER

COMMUNITY DEVELOPMENT

FINANCIAL INSTITUTION

PROJECT PLAN

DRAFT September 30, 2022

1 Contents
Executive Summary ......................................................................................................................................2 BRG Recommendation .................................................................................................................................2 Step 1: Establish CFL (Subsidiary A and B) ................................................................................................2 Step 2: Convert CFL to CDFI ......................................................................................................................4 Existing CDFI Partnership Option..............................................................................................................5 Timeframes and Responsibilities..................................................................................................................5 Proposed Project Timeline........................................................................................................................5 Business Plan ................................................................................................................................................6 Purpose of the CFL....................................................................................................................................7 Organization .............................................................................................................................................7 Organization Structure and Governance ..................................................................................................7 Target Markets .........................................................................................................................................8 Initial opportunities ..................................................................................................................................8 Future opportunities ................................................................................................................................8 Banking Partners.......................................................................................................................................8 Partnership with Other Cities ...................................................................................................................9 Existing CDFI Partnership Option..............................................................................................................9 Legal Analysis..............................................................................................................................................10 Financial Analysis........................................................................................................................................11 Source of Capital.....................................................................................................................................12 Analysis of Banking Needs ......................................................................................................................12 Amount of Capital...................................................................................................................................13 Pro Forma 5 year Projection...................................................................................................................13 APPENDIX 1 - BRG Statement of Work .......................................................................................................14 APPENDIX 2 – CA Assembly Bill No. 857 .....................................................................................................16 APPENDIX 3 - CFL Licensing ........................................................................................................................19 APPENDIX 4 - CDFI Certification..................................................................................................................21 APPENDIX 5 - CDFI Bond Guarantee Program ............................................................................................23 2 Executive Summary
The City of Lancaster (the “City” or “Lancaster”) retained Berkeley Research Group (“BRG “) to develop a strategy and plan with the goal of establishing a public bank, subject to California Legislation Assembly Bill 857 (herein “AB 857”), to serve its local community development needs (see Appendix 1).

Due to the unlikeliness of the FDIC approving a public bank or other such an entity in the near term, along with the cost-prohibitive nature of a public bank, the City has concluded that a fully-functioning public bank may not be the most effective path forward in the near term.

Upon recommendation of legal counsel, BRG proposes the City create an entity known as a Community Financial Lender (“CFL”) licensed under the California Department of Financial Protection and Innovation (“DFPI”).

A CFL allows the City to achieve the primary objectives of a public bank, namely the funding of city projects and more cost-effective banking services. Advantages of a CFL include the ability to add leverage with minimal regulatory requirements and startup costs. Further, a CFL allows the City to control the entity and leverage core competencies.

After 1 year of operating experience and sound financial performance, the CFL will qualify for certification by the US Treasury as a Community Development Financial Institution (“CDFI”).

The CDFI supports the economic development of communities by providing loans and other forms of investment to institutions with the stated purpose of furthering community economic development.

BRG Recommendation
Step 1: Establish CFL (Subsidiary A and B)
In order to become certified as a CDFI by the US Treasury, an institution must have at least 1 year of operating experience with sound financial performance. Further, The US Treasury has recently announced a moratorium on licensing new CDFIs until Q2, 2023.

To bridge this gap between the City’s current status and a fully functional CDFI, subject to legal review, BRG proposes the City create an entity known as a Community Financial Lender (“CFL”) licensed under the California Department of Financial Protection and Innovation (“DFPI”). The CFL allows the City to have an entity in place to operate under the economic development goals outlined above with the intent of applying for CDFI certification after 1 year (see Appendix 3). 3 Advantages of a CFL include the ability to add leverage with minimal regulatory requirements and startup costs. Further, a CFL allows the City to control the entity and leverage core competencies.

The City will establish a Community Finance Lender subject to the guidelines and jurisdiction of the Department of Financial Protection and Innovation. Subject to further due diligence, assets of the proposed Urban Wealth Fund could be incorporated into the CFL.

The CFL will be wholly owned by the City of Lancaster.

For illustrative purposes, the City will provide an initial capital investment of $10mm. The CFL will then establish two subsidiaries (Subsidiary A and Subsidiary B), each capitalized at $5mm. Subsidiaries A and B are wholly owned by the CFL.

The respective Subsidiary organizations will form strategic alliance with one or more established CDFI and/or community banks (see Figure 1).

Figure 1 (For illustrative purposes only)
The goals of this structure are:

1. Enable the City to finance multiple projects by leveraging on its paid in capital; and

2. Provide lower cost of funds
4 A comprehensive financial model will be developed in conjunction with City management (see Proposed Project Timeline).

Subsidiary A will be used to fund the Urban Wealth Fund (UWF) assets by forming strategic alliance with other CDFI or community banks. This will enable the City to fund a bigger portion of its UWF assets by leveraging on the CFL paid in capital, expanding the City’s purview and giving additional resources to the City, while keeping the funds under City control
Subsidiary B will be used to fund the proposed community projects, such as the Evacuation Center and the Job Training Center. It is anticipated that Subsidiary B can access the CDFI Guaranteed Bond program through its partnership with an established CDFI (see Existing CDFI Partnership Option below).

The City’s banking services, currently with Wells Fargo and River City Bank, can be put under either Subsidiary and thereby positioning the City to negotiate for more favorable pricing.

As a separate line of inquiry, BRG can assist in negotiations with the City’s existing banking service providers in Phase II of this project upon further consultation with City management for the Council’s consideration and approval.

Step 2: Convert CFL to CDFI
The CDFI supports the economic development of communities by providing loans and other forms of investment to institutions with the stated purpose of furthering community economic development (see Appendix 4). Over time, the CFDI will establish the necessary controls and processes that will be needed as a stand-alone public bank.

Additionally, a Certified CDFI Qualified Issuer may participate in in CDFI Bond Guarantee Program. Under this program, a Certified CDFI Qualified Issuer applies to the CDFI Fund for authorization to issue bonds worth a minimum of $100 million. The CDFI Fund, which is backed by the US Treasury, provides a 100 percent guarantee on these bonds, up to $1 billion per year. (see Appendix 5) These CDFIs have the opportunity to borrow capital from Qualified Issuers for long-term, large-scale community investments. Such projects may include such activities as the development of small businesses, commercial real estate, housing units, shelters, charter schools, daycare or healthcare centers, and municipal infrastructure, among others. In addition to these projects, Eligible CDFIs may use the capital to extend credit to other community development borrowers (or Secondary Borrowers) or refinance existing loans at below-market interest rates.

It is advisable for Lancaster to engage a bank other than River City and Wells Fargo to separate the municipal transactions from the CDFI transactions. This creates a standalone relationship for Lancaster CDFIs to operate independently from the City of Lancaster The City will apply for regulatory approval to convert the CFL to a CDFI once it has established a satisfactory performance record over one or two years as a CFL. The CDFI license will allow the City to expand its funding sources (e.g. CDFI Bond Guarantee Program) at a lower cost to finance a more diversified range of community financial services, such as small business loans, infrastructure and renewable energy financing among others.
5 The City can convert the CFL to a CDFI when the license moratorium is lifted in 2023 and could ultimately convert the CDFI to a public bank at an opportune time.

BRG will develop a detailed business plan upon further consultation with City management for the Council’s consideration and approval.

Existing CDFI Partnership Option
A potential option for the City is to form a strategic alliance with an established Community Development Financial Institution. The alliance will allow the City to jump start the community projects, such as the evacuation center and job training center by leveraging on the funding sources of the CDFI.

As discussed in Appendix 3, a certified CDFI can issue US Treasury Guaranty Bonds or to raise funds from the private sector, including commercial banks (see Business Plan, Banking Partner Section) to finance its projects.

This option is based on the following considerations:

1. The strategic alliance will enable the City to develop the near-term project(s) and gain operating traction for the purpose of establishing your own CDFI when the moratorium is lifted. It will also minimize the City’s initial capital investment and operating expenses since the CDFI partner will provide the operation platform.

2. This will give the City time to form an entity and to prepare for the CDFI application.

3. Finally, the prospective CDFI partner is amenable to discuss an exit strategy should the City decide to establish its own CDFI some years later.

Proposed Project Timeline
• October - November 2022
o BRG to finalize the business strategy and structure and plan. o Legal opinion on establishing a CFL as the first step toward the goal of attaining CDFI approval.
• November - December 2022
o Marketing plan and management plan
o Application to DFPI
• December 2022- January 2023
o Initiate board members and management team recruitment. • February – March 2023
o BRG to assist the formation of CDFI strategic alliance and community banking partnerships.
• March - April 2023
o Complete board formation and executive recruitment process. o Physical locations
o Technology requirements/outsourcing
• May 2023
o Continue follow-up on CFL application.
• June 2023
o CDFI requirements/documents
All regulatory applications will be subject to legal review. 6 7
Business Plan
City of Lancaster
8 Purpose of the CFL
The CFL will be focused on providing a municipal financing alternative to traditional banks to increase capital for local economic development priorities and improves banking access for residents and small businesses.

The CFL will be wholly owned by the City of Lancaster with initial capital of $10mm. The CFL will then establish two subsidiaries (Subsidiary A and Subsidiary B), each capitalized at $5mm. Subsidiaries A and B are wholly owned by the CFL. The respective Subsidiary organizations will form strategic alliance with one or more established CDFI and/or community banks.

The loans that the CFL will provide will be for the purpose of economic development within the City and its environs. These loans will bridge lending gaps for small and MWBE business created by commercial bank lending barriers. Given its focus on local development, the CFL is a better vehicle to disburse public monies to local businesses and ensure that disbursements go to businesses in need of financing to foster economic growth in the region.

The CFL will provide reasonably priced loans to local small businesses which will make this funding vehicle attractive to City stakeholders and assist the community its growth strategy. The revenue from the loans will be used by the City to reduce the reliance on municipal taxes.

The CFL will go through the process of becoming a Certified Community Development Financial Institution.

On an annual basis, the CFL will submit an Annual Certification and Data Collection Report (“ACR”) to ensure it continues to meet the CDFI’s requirements. The ACR is comprised of four main sections:
- Section 1: Organizational Information
- Section 2: Financial Data Detail
- Section 3: Financial Products Portfolio Breakdown Detail - Section 4: Development Services Detail
Organization
• Ownership: 100% owned by the City of Lancaster.
• Board of Directors
• Management Team: Independent of the City. (subject to legal review) • Key executives include CEO, CFO, Chief Lending Officer, COO and Risk/Compliance. • Operating Platforms: loans and cash management, under contract with the partner bank to minimize the number of FTEs.
• Audit/compliance/insurance: timely report/interface with the regulatory agencies.

Organization Structure and Governance
Subject to further legal review, the CFL will develop a governance structure like a traditional bank with a separate, dedicated management team and an independent board of directors. The city and other municipalities will have representation on the board of directors to ensure that the needs of the local communities are considered as part of the CFL’s decision processes.

The board of directors will be responsible for setting the standards and strategic direction of the CFL as it looks to transition to a public bank. Management will be responsible for the day-to-day management 9 of the CFL and making decisions on underwriting, investments, and services to be provided to local communities.

The CFL will be staffed by individuals with the requisite financial/banking experience and will be independent from the municipality and related entities.

City staff will be able to staff the CFL and be part of the CDFI subject to further legal study and review with outside counsel.

Target Markets
Reflecting the CDFI mission.

Initial opportunities
• Community Development Projects to include a $45mm event/evacuation center • $15mm veterans and job training center
• Affordable housing/CRA
• Small business loans, in conjunction with SBA
Future opportunities
• Renewable energy
• A $800mm hospital project (Medical Mainstreet)
• A $400mm Urban Wealth / Opportunity Fund
• Municipal bond repos program
• CDFI guaranteed bond issuance
Banking Partners
BRG will assist the city management to identify prospective banking partners and select the appropriate candidate if deemed necessary. Preferably, the banking partner ("Partner") will be a California bank.

The Partner's operation platforms will provide a "one stop shop" for the City, though it may in turn, outsource some of the services to a third party. Bond issuance and related services are good examples in this regard since not all California banks are licensed to conduct such businesses. However, the partner bank may have affiliates or correspondent arrangements with other financial institutions that will enable them to provide you with a one stop service.

At a minimum, the Partner will provide a full range of cash management services, investment services, commercial loans, and infra-structure financing. It will stand ready to participate in all CRA activities and possibly tax credit deals.

Banking partnerships can help the City achieve the following:

1. Lower the cost banking services

2. In return the bank(s) will invest in the projects jointly with the City. 10 Partnership with Other Cities
Per our conversation to date, in addition to the City of Lancaster, the future Public Bank will service neighboring cities in a cooperative. Initial targets will include but not limited to the nine cities that are the incumbent members of your energy portfolio service.

It is anticipated that the key banking services will include cash management (ACH, lockbox, online banking etc.), equipment loans/leases, infra-structure loans (solar project, convention center, lowincome housing development etc.), investment service, bond issuance and related services, trust service among others. Legal counsel opinion may be needed prior to deciding on the final products offerings.

We shall also explore other public-private partnership opportunities beyond the agency services for the targeted cities in the plan.

Existing CDFI Partnership Option
An existing alternative option for the City is to partner with an existing CDFI and co-operate for a period of time through an LLC before forming a standalone CDFI. In this alternative option, the City forms a separate entity that enters into an LLC with an existing CDFI and operates under that existing CDFI. The City and CDFI partner inject additional capital as needed.

The LLC will focus on affordable housing in its first year to satisfy a key initial objective for the City. The City will gain experience in the processes and procedures of an operational CDFI through co-operation with the partner entity.

The new LLC will operate under the existing CDFI for its first year or other agreed upon timeframe. After a year (or other agreed upon timeframe), the City’s separate entity can form its standalone CDFI and begin to operate as such.

Advantages for this route include being quicker to market, reliance on existing experience, the ability to apply for CDFI grants immediately, a time buffer for the City to learn how to be a CDFI while operating as one, shared resources and capabilities with the other entity, and the option to eventually form its own CDFI independent of the LLC.

Disadvantages include shared responsibility and risk with another business entity, additional legal considerations when partnering with another business entity, and the sharing of profit or revenue.

Key steps in this alternative option:
o The City will form a separate entity for the purpose of a municipal finance corporation o The separate entity forms a Limited Liability Company (LLC) with an existing CDFI o The LLC injects the CDFI with additional capital
o The LLC operates as a CDFI under the CDFI Fund over a one-year period, applying for appropriate grants
o The LLC focuses on affordable housing
o After a one-year period, after the LLC has established its operational capabilities, the City’s separate entity applies to become a standalone CDFI
o The standalone CDFI begins operations
11 Legal Analysis
Questions requiring additional legal analysis:

1. Question #1: Can A public entity such as a city be exempt from CFL requirements?

2. Question #2: Public law – Does a charter city have the authority to engage in such financial activities?
12 Financial Analysis
City of Lancaster
13 Source of Capital
The CFL will be funded by the City with any incremental money invested from the City as well. This investment allows for appropriate liquidity management with a dollar-for-dollar match and provide sufficient funds to be loaned to local community projects and businesses.

Our understanding is that the CFL will be wholly owned by the City of Lancaster. It will be prudent to consider proformas with other investors, but the primary can be a wholly owned option.

Analysis of Banking Needs
As a separate line of inquiry in Phase II, BRG can assist with creating a more efficient approach to the City’s banking services.

Currently, the City maintains operating accounts at River City Bank for its involvement in Choice Energy and at Wells Fargo for its ongoing City operations (e.g., tax receipts, payroll).

Account Institution Balance at 4/30/22
California Choice Energy
Authority "Operating Account"
River City Bank $ 657,819.96
City of Lancaster DBA Lancaster
Choice Energy as Pledgor for
Multiple Secured Creditor River
City Bank as Secured Agent
River City Bank $ 4,983,745.35
City of Lancaster PUBAGT Wells Fargo $ 30,893,903.90
The City currently has an investment portfolio that will remain at its current location until the CFL has the appropriate staff, governance structure, and procedures to manage an investment portfolio.

U S Bank - Safekeeping $ 42,124,471
US Treasury Notes 1.67% $ 17,267,941
Federal Government Agencies 1.46% $ 11,881,587
Corporate Securities 2.82% $ 8,116,356
Municipal/Provincial Bonds 1.09% $ 4,777,997
Cash & Equivalents 0.00% $ 80,590
Chase Bank $ 150,965
Certificate of Deposit 1.00% $ 150,965
Local Agency Investment Fund (LAIF) 52.00% $ 21,881,975 $ 21,881,975 Successor Agency for the Lancaster Redevelopment Agency Local Agency Investment Fund (LAIF) 52.00% $ 10,397,102 $ 10,397,102 14 Amount of Capital
For illustrative purposes: $10mm
Startup - $2mm
Sub A - $5m
Sub B - $5m
Pro Forma 5 year Projection
Year 1 – CFL
Year 2 – CDFI
Year 3 – CDFI
Year 4 – CDFI
Year 5 – Public Bank
US Bank
LRA Combined 2004 Fire Protection Facilities Project Bonds 0.18% $ 865,574 LRA Combined 2004 Sheriff Facilities Prjct Refunding Bonds 0.18% $ 1,815,606 LPA Solar Renewable Energy Issue of 2021 0.01% $ 12,659 SA Combined Project Areas Refunding Bonds 2015A & B 0.18% $ 13 SA Combined Project Areas Refunding Bonds 2016 A-1 & A-2 0.18% $ 15 SA Combined Project Areas Refunding Bonds 2016B 0.18% $ 6 LFA 2016 Assessment Revenue Bonds (Streetlights Acquisition) 0.18% $ 1 LFA LRB 2018 Construction and Improvements 0.18% $ 2,394,546 LFA 2018 Lease Revenue Bonds 0.18% $ 561,691
LFA LRB 2019 Street Improvements 0.18% $ 55,632,374
Total Restricted Cash/Investments Held in Trust $ 61,282,485 15 APPENDIX 1 - BRG Statement of Work
Attachment A
Statement of Work & Project Plan
The following summarizes our discussion regarding the project plan to form the Bank. Phase I will include developing a high-level business plan and preparing for regulatory meetings. Phase II will include implementation steps to form the Bank.

Phase I – Business Plan and Preliminary Meetings (Estimate of 6-8 weeks) - Assist the Client with preparation of financial projections and the business plan to satisfy the FDIC and DFPI's five-year requirements.
(a) Business Plan: Per our conversation to date, in addition to the City of Lancaster ("City"), initial targets will include but not limited to the nine cities that are the incumbent members of your energy portfolio service. It is anticipated that the key banking services will include cash management (ACH, lockbox, on-line banking etc.), equipment loans/leases, infra-structure loans (solar project, convention center, low income housing development etc.), investment service, bond issuance and related services, trust service among others. Legal counsel opinion may be needed prior to deciding on the final products offerings. We shall also explore other public-private partnership opportunities beyond the agency services for the targeted cities in the plan. (b) Banking Partner: BRG will assist the city management to identify prospective banking partners and select the appropriate candidate if deemed necessary. Preferably, the banking partner ("Partner") will be a California bank. The Partner's operation platforms will provide a "one stop shop" for the City, though it may in turn, outsource some of the services to a third party. Bond issuance and related services are good examples in this regard since not all California banks are licensed to conduct such businesses. However, the partner bank may have affiliates or correspondent arrangements with other financial institutions that will enable them to provide you with a one stop service. At a minimum, the Partner will provide a full range of cash management services, investment services, commercial loans and infra-structure financing. It will stand ready to participate in all CRA activities and possibly tax credit deals. (c) Financial Projections: BRG will assist you to determine the optimal paid in capital amount and to develop a five year plan per FDIC guidelines. In order to achieve these goals, we shall request you to provide a detailed listing of your financing needs, including cash and investment activities reports (frequency and average dollar amount of each transaction and aggregate) on a monthly basis, equipment financing (types of equipment, terms and conditions etc.), timeline and dollar amount of each infrastructure project and other financing needs. This data will also help us to derive the estimated paid in capital requirement. It is understood that the City of Lancaster will be the sole owner of the public bank while the partner bank may enjoy a stream of banking service fees, interest income from loans and CRA credit.
(d) PowerPoint: BRG will summarize the above items and the overall plan. - Prepare the Client for preliminary meetings with bank regulators and the FDIC regarding formation of a bank.
- Schedule, attend and assist with any follow up regarding these regulatory meetings. 16 - Develop other audit, internal control and risk management elements that will be expected by the FDIC to be in place prior to opening the Bank;
- Assist in identifying IT and other systems infrastructure needs that will optimally support the Bank’s growth and development;
- Assist in developing and implementing risk measurement models and analytical tools; Phase II – Implementation ( Estimate of 12-16 weeks – Prepare and file applications and assist Client with implementation.)
- Prepare the uniform de novo and FDIC deposit insurance applications required to form the Bank.

This includes policies and procedures that must be submitted with the application. - Maintain contact with regulators as needed during the approval process to secure timely approvals.

BRG will assist the Client to create and execute implementation plans (See sample below). These plans will include premises, locating board members and executive staff, technology systems, risk management policies and procedures.

Some of the important implementation action steps that BRG will assist the Client include:
- Assist management with the implementation of the risk management process that will set the foundation for the control structure at the Bank. In our focus on risk management, we will identify all risk categories that the institution is exposed to, and we will build a risk management infrastructure for each that will meet regulatory expectations; - Assist in structuring management and Board-level committees that will oversee and direct risk and other management functions, including committee charters; - Develop risk and other management reports that will be provided to the Board and senior management to assist them in monitoring the Bank's risk and performance; - Prepare the Institution for the initial regulatory examination; and - Provide training to the Board and management as necessary. 17 APPENDIX 2 – CA Assembly Bill No. 857
As a municipal entity, the City of Lancaster is committed to economic development through a costeffective financing vehicle and has a need for a variety of banking services that it currently receives from several financial institutions. While the services are provided at market rates, these rates are ultimately a drain of financial resources that could be better spent on community development and city infrastructure. Therefore, the city has been exploring the idea of creating a public bank under California Legislation Assembly Bill 857.

Under AB 857, a public bank is a corporation, organized as either a nonprofit mutual benefit corporation or a nonprofit public benefit corporation for the purpose of engaging in the commercial banking business or industrial banking business that is wholly owned by a local agency, as specified, local agencies, or a joint powers authority (see below for AB 857).

The City has undertaken a series of steps to analyze the process of establishing a public bank. The goal of a public bank will be for economic development and funding for specific projects in Lower-MiddleIncome areas. Such needs include low-income housing, an evacuation center, medical and job training facilities, energy projects and small business loans in addition to reducing the City’s banking expenses that are currently charged by the commercial banks.

Assembly Bill No. 857
CHAPTER 442
An act to amend Sections 5130 and 7130 of the Corporations Code, to amend Sections 119, 1004, and 1100 of, and to add Section 1008 to, the Financial Code, to amend Sections 6254.26, 23007, 53601, 53635, and 53635.2 of, to add Division 5 (commencing with Section 57600) to Title 5 of, and to add Sections 6254.35, 54956.97, and 54956.98 to, the Government Code, and to add Section 23701aa to the Revenue and Taxation Code, relating to public banks.
[Approved by Governor October 2, 2019. Filed with Secretary of State October 2, 2019.] Legislative counsel’s digest
AB 857, Chiu. Public banks.

Existing law, the Financial Institutions Law, regulates the activities of various financial entities, including commercial banks, industrial banks, trust companies, credit unions, and savings associations. The Banking Law defines and regulates state banks and commits the enforcement of banking laws to the Commissioner of Business Oversight.

Existing law prohibits a county from giving or loaning its credit to, or in aid of, any person or corporation.

Existing law requires a local agency, as defined, to deposit all money belonging to, or in the custody of, that local agency into specified state or national banks, as defined. Existing law regulates the investment of public funds by local agencies.
18 Existing law, the Nonprofit Corporation Law, regulates the formation and conduct of a nonprofit mutual benefit corporation and a nonprofit public benefit corporation.

This bill would define the term “bank” for purposes of the Financial Institutions Law and the Banking Law to include a public bank. The bill would define the term “public bank” to mean a corporation, organized as either a nonprofit mutual benefit corporation or a nonprofit public benefit corporation for the purpose of engaging in the commercial banking business or industrial banking business, that is wholly owned by a local agency, as specified, local agencies, or a joint powers authority.

The bill would require a public bank to obtain a certificate of authorization to transact business as a bank from the commissioner and to obtain and maintain insurance, subject to specified requirements. The bill would prohibit the commissioner from issuing more than 2 public bank licenses, as defined, in a calendar year and would prohibit the commissioner from authorizing more than 10 public banks at one time. The bill would require a public bank to include a specified purpose statement in its articles of incorporation and make conforming changes. The bill would require a local agency to conduct and approve, as specified, a study of the viability of a public bank containing specified elements before submitting an application to the commissioner to organize and establish a public bank and would require the local agency to include a copy of that study in the application submitted to the commissioner. The bill would require a local agency that is not a charter city to obtain voter approval of a motion to submit an application to the commissioner, as specified. The bill would authorize a county to lend its available funds to a public bank.

The bill also would authorize a local agency to deposit funds in a public bank, and to invest in a public bank, subject to certain requirements. The bill would authorize a public bank to make distributions to its members. The bill would require, as specified, a public bank to conduct retail activities in partnership with local financial institutions and would prohibit a public bank from competing with local financial institutions.

The Corporation Tax Law imposes a franchise tax on financial corporations, but provides that the tax is in lieu of all other state and local taxes and licenses, with certain exceptions. That law also exempts specified classes of entities from the franchise and income taxes imposed by that law, including state-chartered credit unions.

This bill would additionally exempt from those franchise and income taxes any public bank. This bill would also exempt a public bank from all other state and local taxes and licenses, with certain exceptions.

Existing law, the Ralph M. Brown Act, requires that all meetings of the legislative body, as defined, of a local agency be open and public and all persons be permitted to attend unless a closed session is authorized.

This bill would authorize the governing board of a public bank or a committee of that governing board to meet in a closed session to consider and take action on matters pertaining to a loan or investment decision, a decision of the internal audit committee, the compliance committee, or the governance committee, and a meeting with a state or federal regulator. The bill would authorize a public bank to make all information received by a shareholder, member, or owner of a public bank confidential, as specified.

Existing law, the California Public Records Act, requires that public records, as defined, be available to the public for inspection and made promptly available to any person. 19 This bill would exempt specified information and records of a public bank, and related decisions of the directors, officers, and managers of the public bank, from the disclosure requirements of the act, including, among others, records related to alternative investments of the bank, as specified, meeting materials of any closed session, a record containing information regarding a portfolio position in which the public bank invests, information related to a specific account in the bank, and specified correspondence related to meetings with, or a memorandum or letter received from, state and federal banking regulators.

Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

This bill would make legislative findings to that effect.

The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.

This bill would make legislative findings to that effect. 20 APPENDIX 3 - CFL Licensing
https://dfpi.ca.gov/california-financing-law/california-financing-law-about/ California Financing Law (Fin. Code, § 22000 et seq.) requires the licensing and regulation of finance lenders and brokers making and brokering consumer and commercial loans, except as specified; prohibits misrepresentations, fraudulent and deceptive acts in connection with making and brokering of loans; and provides administrative, civil (injunction and ancillary relief) and criminal remedies for violations of the law. The regulations under the California Financing Law begin with section1404 of title 10 of the California Code of Regulations (Cal. Code Regs., tit. 10, § 1404 et seq.). A finance lender is defined in the law as “any person who is engaged in the business of making consumer loans or making commercial loans.”
A finance lenders license provides the licensee with an exemption from the usury provision of the California Constitution. There are a number of “non-loan” transactions, such as bona fide leases, automobile sales finance contracts (Rees-Levering Motor Vehicle Sales and Finance Act) and retail installment sales (Unruh Act), that are not subject to the provisions of the California Financing Law. In addition to requiring a license for certain lending activity, the California Financing Law requires a license for certain brokering activity.

A “broker” is defined in the law as “any person engaged in the business of negotiating or performing any act as broker in connection with loans made by a finance lender.” A broker license authorizes brokering of loans to licensed finance lenders; it does not authorize brokering of loans to those who are not licensed finance lenders. The requirements for a license are set forth in Financial Code section 22100 et seq. The law requires applicants to have and maintain a minimum net worth of at least$25,000 and to obtain and maintain a $25,000 surety bond. In general, principals of the company may not have a criminal history or a history of non-compliance with regulatory requirements.

Who is Required to Obtain a Finance Lenders License?
In general, any person engaging in the business of a finance lender or finance broker in California is required to obtain a license under the California Financing Law. The California Financing Law contains a number of exemptions for persons licensed by other regulatory agencies.

Definitions
“Finance lender” includes any person engaged in the business of making consumer loans or making commercial loans.
“Finance broker” includes any person engaged in the business of negotiating or performing any act as broker in connection with loans made by a finance lender. A broker license authorizes brokering of loans to licensed finance lenders; it does not authorize brokering of loans to those who are not licensed finance lenders.

If you are applying for a new license under the California Financing Law, apply through NMLS by selecting “Getting Started” on the NMLS Resource Center page. Follow the California Financing Law Checklist for the requirements specific to new applicants under the California Financing Law. 21 Do I need to authorize my branch office(s) through NMLS? In addition to the main office identified on the California Financing Law license, a license is required for each branch location that conducts business with California consumers.

All branches of companies must obtain a license through NMLS. Instructions for a branch license through NMLS
Who does not need a branch license?
Any physical location of a licensee not engaged in lending or brokering activities for California residents does not require a branch license.
22 APPENDIX 4 - CDFI Certification
https://www.cdfifund.gov/programs-training/certification/cdfi CDFIs are private sector financial institutions that focus primarily on personal lending and business development efforts in poorer local communities requiring revitalization in the US CDFIs can receive federal funding through the US Department of the Treasury (“US Treasury”) by completing an application. They can also receive funding from private sector sources such as individuals, corporations, and religious institutions.

These entities are the direct result of the Community Reinvestment Act of 1977, which was due to banking and economic development inequalities throughout communities in the US Types of CDFI
CDFI Type Regulation Funding Sources
Financial Products & Services
Offered
Community
Development
Bank or Bank
Holding Company
The Federal Reserve,
Office of the
Comptroller of the
Currency and state
banking agencies
federally regulates and
insures through the
Federal Depository
Insurance Corp
Funding sources are
deposits (often below
market investments) from
individuals, institutions, and
the government
Mortgage financing; home
improvement, commercial
business, nonprofit and student
loans; consumer banking services
Community
Development
Credit Union
Federally and state
regulated and insured
by the National Credit
Union Administration
Funding sources are
member deposits and
limited non-member
deposits from social
investors, the government
Consumer banking services (e.g.,
savings accounts, check cashing,
personal loans, home rehabilitation
loans
Community
Development
Loan Fund
Regulations are selfregulated; except for
non-profit 501(c)(3)
restrictions and state
securities laws where
applicable
Foundations, banks,
religious organizations,
corporations, the
government, insurance
companies and individuals
Construction; affordable housing
development; facilities, small
business start-up and
microenterprises loans
Community
Development
Venture Capital
Fund
The variable; depends
on funding sources
Foundations, corporations,
individuals, the government
Commercial equity investments
and loans with equity features
23 To be eligible for CDFI Certification, an organization must meet the following criteria:
• Is a legal entity at the time of Certification application. • Has a primary mission of promoting community development • Is a financing entity.
• Primarily serves one or more target markets;
• Provides development services in conjunction with its financing activities; • Maintains accountability to its defined target market; and • Is a non-government entity and not under the control of any government entity (Tribal governments excluded).

Certification applications and approvals are submitted and granted on a rolling basis. As of July 2022, there are 1,372 certified CDFIs in the US (108 in California).

Type Number
Bank Holding Company 143
Bank or Thrift 175
Credit Union 469
Loan Fund 570
Venture Capital Fund 15
Total 1,372
24 APPENDIX 5 - CDFI Bond Guarantee Program
https://www.cdfifund.gov/programs-training/programs/cdfi-bond This US Treasury program is administered by the CDFI Fund. Through the CDFI Bond Guarantee Program, CDFIs must be certified to participate in the CDFI Fund program. A certified CDFI, once designated as a Qualified Issuer will issue bonds that are guaranteed by the Federal government and use the bond proceeds to extend credit to the broader CDFI industry for community development purposes or to refinance certain existing obligations.

To receive Qualified Issuer status, an organization must demonstrate the expertise, capacity, and experience to issue taxable bonds and make loans for Eligible Community and Economic Development Purposes. A Qualified Issuer must:
• Be a Certified CDFI (as designated by the CDFI Fund), or its designee. • Be able to issue bonds and make loans; and
• Demonstrate the capacity to perform specialized administrative functions, including loan servicing and financial reporting.

As a Qualified Issuer, a Certified CDFI applies to the CDFI Fund for authorization to issue bonds worth a minimum of $100 million. The CDFI Fund provides a 100 percent guarantee on these bonds, up to $1 billion per year.

The Qualified Issuer then sells the government-backed bonds to the Federal Financing Bank (“FFB”) – a government corporation that ensures that Federal obligations are financed efficiently. Each bond has a maximum maturity of 30 years. The Qualified Issuer must use the proceeds from the bond sale to extend credit to other CDFIs. As a result, Qualified Issuers serve as a “go-between” financier to the broader CDFI industry.

These CDFIs have the opportunity to borrow capital from Qualified Issuers for long-term, large-scale community investments. Such projects may include such activities as the development of small businesses, commercial real estate, housing units, shelters, charter schools, daycare or healthcare centers, and municipal infrastructure, among others. In addition to these projects, Eligible CDFIs may use the capital to extend credit to other community development borrowers (or Secondary Borrowers) or refinance existing loans at below-market interest rates.

Unlike other CDFI Fund programs, the CDFI Bond Guarantee Program does not offer grants or direct loans but is instead a federal credit subsidy program. The bond proceeds are debt instruments that must be repaid.

The CDFI Bond Guarantee Program is designed to function at no cost to taxpayers.

Bonds (including principal, interest, and call premiums) are 100 percent guaranteed by the US government. The FFB is the sole purchaser of bonds issued under the CDFI Bond Guarantee Program. 550 S. Hope St., Suite 2150, Los Angeles, CA 90071
Berkeley Research Group, LLC | 877.696.0391 | www.thinkbrg.com

PRIVILEGED AND CONFIDENTIAL
April 29, 2022
Via Email
Mr. Jason Caudle, City Manager
Mr. George Harris, Director of Finance and Information System City of Lancaster
44933 Fern Avenue
Lancaster, CA 93534
E-mail: [email protected]
[email protected]
cc: Kwok-Yin Cheng, KYC Consulting, Inc.

E-mail: [email protected]
Re: Formation of a De Novo Public Bank ("Bank") Matter 043400 Dear Mr. Caudle and Mr. Harris,
It was a pleasure meeting you on Monday. We have updated our proposal per our discussion. The Statement of Work and Project Plan for this project is shown as Attachment A below. We have also included a contract for your signature.

Sincerely,
Walter J. Mix III
Managing Director
Financial Services Practice Group Leader

CONFIDENTIAL
April 29, 2022

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Matter #043400 Formation of a De Novo Bank
Attachment A
Statement of Work & Project Plan
The following summarizes our discussion regarding the project plan to form the Bank. Phase I will include developing a high-level business plan and preparing for regulatory meetings. Phase II will include implementation steps to form the Bank.

Phase I – Business Plan and Preliminary Meetings (Estimate of 6-8 weeks) - Assist the Client with preparation of financial projections and the business plan to satisfy the FDIC and DFPI's five-year requirements.
(a) Business Plan: Per our conversation to date, in addition to the City of Lancaster ("City"), initial targets will include but not limited to the nine cities that are the incumbent members of your energy portfolio service. It is anticipated that the key banking services will include cash management (ACH, lockbox, on-line banking etc.), equipment loans/leases, infra-structure loans (solar project, convention center, low income housing development etc.), investment service, bond issuance and related services, trust service among others. Legal counsel opinion may be needed prior to deciding on the final products offerings. We shall also explore other public-private partnership opportunities beyond the agency services for the targeted cities in the plan.
(b) Banking Partner: BRG will assist the city management to identify prospective banking partners and select the appropriate candidate if deemed necessary. Preferably, the banking partner ("Partner") will be a California bank. The Partner's operation platforms will provide a "one stop shop" for the City, though it may in turn, outsource some of the services to a third party. Bond issuance and related services are good examples in this regard since not all California banks are licensed to conduct such businesses. However, the partner bank may have affiliates or correspondent arrangements with other financial institutions that will enable them to provide you with a one stop service. At a minimum, the Partner will provide a full range of cash management services, investment services, commercial loans and infra-structure financing. It will stand ready to participate in all CRA activities and possibly tax credit deals.
(c) Financial Projections: BRG will assist you to determine the optimal paid in capital amount and to develop a five year plan per FDIC guidelines. In order to achieve these goals, we shall request you to provide a detailed listing of your financing needs, including cash and investment activities reports (frequency and average dollar amount of each transaction and aggregate) on a monthly basis, equipment financing (types of equipment, terms and conditions etc.), timeline and dollar amount of each infrastructure project and other financing needs. This data will also help us to derive the estimated paid in capital requirement. It is understood that the City of Lancaster will be the sole owner of the public bank while the partner bank may enjoy a stream of banking service fees, interest income from loans and CRA credit.
(d) PowerPoint: BRG will summarize the above items and the overall plan.

CONFIDENTIAL
April 29, 2022

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Matter #043400 Formation of a De Novo Bank
- Prepare the Client for preliminary meetings with bank regulators and the FDIC regarding formation of a bank.
- Schedule, attend and assist with any follow up regarding these regulatory meetings. - Develop other audit, internal control and risk management elements that will be expected by the FDIC to be in place prior to opening the Bank;
- Assist in identifying IT and other systems infrastructure needs that will optimally support the Bank’s growth and development;
- Assist in developing and implementing risk measurement models and analytical tools; Phase II – Implementation ( Estimate of 12-16 weeks – Prepare and file applications and assist Client with implementation.)
- Prepare the uniform de novo and FDIC deposit insurance applications required to form the Bank. This includes policies and procedures that must be submitted with the application.
- Maintain contact with regulators as needed during the approval process to secure timely approvals.

CONFIDENTIAL
April 29, 2022

Page 4 of 5 ends

Matter #043400 Formation of a De Novo Bank

CONFIDENTIAL
April 29, 2022

Page 5 of 5 ends

Matter #043400 Formation of a De Novo Bank
NOTE: The above is a sample status report. Actual implementation plan and status report will be developed at the outset of the project.

Estimated Cost(s)
Our fee estimates are based on average hourly rates for our Experts, Senior Staff, and Junior Staff. The actual fees incurred could vary significantly from the below estimates. It is our practice to perform the necessary work as efficiently as possible using a cost-effective team that leverages team members with lower hourly rates whenever possible. The range of billing rates for our team members are as follows:

Title Rate
Director & Managing Director $375 and above per hour
Associate Director $375 and above per hour
Senior Managing Consultant/Economist $350 and above per hour Managing Consultant/Economist $300 to $550 per hour
Consultant $275 to $535 per hour
Senior Associate $205 to $475 per hour
Associate $190 to $375 per hour
Case Assistant $100 to $230 per hour
The fee for Phase I will be based on our hourly rates and expenses and will not exceed $125,000.00. This means that we will bill at our normal hourly rates and expenses until we reach the fee cap. Our best estimate is that BRG's professional fees for this entire engagement will be between $300,000 to $400,000, based on our hourly rates and expenses.

It has been our experience that the professional fees are difficult to estimate for a variety of reasons. We will update the budget once we are onsite and provide weekly updates. We will also provide a timeframe and responsibilities document delineating roles for the Bank and BRG.

Please note that the fees for legal services, accounting, executive search and others are not included in BRG's fee estimate. These issues include but are not limited to:
- Legal analysis to ascertain that the bank formation is in compliance of the State constitution.
- Bank compliance with Section 53636 of the state government code regarding governance.

Timing
We are prepared to begin this upon receipt of a signed contract.

REVISED PHASE 2
City of Lancaster
Community Development Financial Institution (CDFI) Project Plan - Phase II
Amended Statement of Work (SOW)
October 11, 2022
Phase II

CONFIDENTIAL
October 11, 2022
Berkeley Research Group (BRG) will assist COL with formation of a consumer finance lender under California law (CFL). This phase will generally follow the items in our City of Lancaster Community Development Financial Institution Project Plan (September 11, 2022). This phase will include the following steps.
- Strategy and structure of entity
- Business plan/financial projections
- Marketing plan
- Board and management plan
- Application to DFPI
- Communication with regulators
- Documents and advice regarding CDFI approval
- Outsourcing and partner plan
- Other assistance as needed to assist to form the CFL
Also, as previously noted, qualifying as a CDFI will take some time to achieve as the CFL will need to operate for at least one year before Treasury will act on a request to approve. We will take steps preparatory to submission to Treasury during this phase. Please note that legal review isseparate from this SOW.

BRG will charge the City of Lancaster based on our hourly rates and fees. The total for Phase II Matter #043400 Formation of a De Novo Bank

STAFF REPORT
City of Lancaster
CC 14
10/11/2022
JC
Date: October 11, 2022
To: Mayor Parris and City Council Members
From: Andrea Alexander, City Clerk
Subject: Zone Text Amendment to Title 17 (Zoning) of the Lancaster Municipal Code Relating to Alcoholic Beverage Establishments (Chapter 17.10, Chapter 17.12, Chapter 17.16 and Chapter 17.42)
Recommendation:

Adopt Ordinance No. 1093, amending Chapter 17.10, Chapter 17.12, Chapter 17.16 and Chapter 17.42 of the Lancaster Municipal Code relating to Alcoholic Beverage Establishments.

Fiscal Impact:

None.

Background:

The City Council directed staff to review and update the City’s alcohol ordinance to create consistency and reconcile discrepancies in the Lancaster Municipal Code as it relates to alcohol establishment. Additionally, as part of the review process, staff surveyed and analyzed codes and policies from other agencies as appropriate and applicable. These agencies consisted of neighboring cities and the Department of Alcoholic Beverage Control. In addition to reviewing other cities, staff also reviewed current and past trends related to alcohol within the City of Lancaster, with respect to facility types and the current application and approval process. The result of this effort is a Zone Text Amendment (ZTA) to various sections in the Alcoholic Beverage Establishment section (see Attachment A) that would include:
· changes to definitions,
· modifications to conditional use permit requirements, · addition of a minor use permit process, and
· removal of the factors regarding public convenience or necessity.

In addition, Chapter 17.10-Mixed Use zones, Chapter 17.12-Commercial zones, and Chapter

17.16-Industrial zones would include changes in two sections: Uses subject to director’s review and approval, and Uses subject to conditional use permits. These changes would be consistent with Chapter 17.42 of the Zoning Code. The major changes to Chapter 17.42 include the addition of the Director’s Review and Minor Use Permit process, and the removal and reconciliation of definitions. Currently, Chapter 17.42 is convoluted with numerous definitions for the different types of alcoholic beverage establishments, making it complicated and unclear how to identify the type of establishments and its process. Definitions were removed, reconciled and revised to provide clarity. Also, in order to streamline the process for bona-fide restaurants, hotels, grocery stores and breweries, these types of uses would require approval of a director’s review without a discretionary hearing.

In addition, convenience markets/neighborhood markets requesting the sale of beer and wine only would be subject to a new process called the Minor Use Permit (MUP). This requires a project notice to property owners within 500 feet of the project site, but the approving authority would be the Director. The Director may refer the project to Planning Commission or City Council for consideration and decision if deemed necessary.

Planning Commission
The Planning Commission heard the proposed ZTA during their regular meeting on August 15, 2022, and unanimously voted to recommend approval to the City Council.

The proposed Zone Text Amendment would improve clarity, user-friendliness, and staff’s ability to serve the public. It would provide more flexibility, incentivize businesses, and provide a business-friendly environment that would streamline the current process, while addressing any potential concerns related to the sale of alcohol.

At the Lancaster City Council meeting held on September 13, 2022, the City Council approved the introduction of Ordinance 1093, amending Chapter 17.10, Chapter 17.12, Chapter 17.16 and Chapter 17.42 of the Lancaster Municipal Code relating to Alcoholic Beverage Establishments. by the following vote: 4-1-0-0 Ayes : Malhi, Mann, Vice Mayor Crist, Mayor Parris; Noes:

Dorris, Abstain: None; Absent: None
Attachment:

Ordinance No. 1093
Exhibit "A" of the Ordinance
Attachment A-Redlines
ORDINANCE NO. 1093

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
LANCASTER, CALIFORNIA, AMENDING CHAPTER 17.10,
CHAPTER 17.12, CHAPTER 17.16, AND CHAPTER 17.42 OF

THE LANCASTER MUNICIPAL CODE RELATING TO

ALCOHOLIC BEVERAGE ESTABLISHMENTS
WHEREAS, the City Council of the City of Lancaster has determined that it is necessary to amend Chapter 17.10, Chapter 17.12, Chapter 17.16 and Chapter 17.42 of the Lancaster Municipal Code relating to alcoholic beverage establishments (the “Amendment”); and WHEREAS, on August 15, 2022, the City’s Planning Commission held a public hearing on the Amendment, notice of which was published and provided as required by law, and adopted Resolution No. 22-26 (the “Planning Commission Recommendation”) recommending the City Council approve the Amendment; and
WHEREAS, on September 13, 2022, the City Council held a public hearing on the Amendment pursuant to Section 65856 of the Government Code, notice of which was published and provided as required by law; and
WHEREAS, the City Council now desires to adopt the Amendment in its entirety to read as set forth therein.

THE CITY COUNCIL OF THE CITY OF LANCASTER DOES HEREBY ORDAIN, AS FOLLOWS:

Section 1. The City Council of the City of Lancaster hereby finds and determines that the above recitals are true and correct.

Section 2. The City Council has received, reviewed and hereby adopts the Planning Commission Recommendation. Consistent therewith, the City Council makes the following findings:
(a) The commission may recommend approval where the information presented at public hearing shows that such amendment is necessary to implement the general plan and/or that the public convenience, the general welfare or good zoning practice justifies such action.

Section 3. This ordinance is determined that pursuant to Section 15162 and 15168(c)(2) of the State California Environmental Quality Act (CEQA) Guidelines, the proposed amendments are within the scope of the Program Environmental Impact Report (SCH#2007111003) for the existing Lancaster General Plan 2030, and no further environmental review is required.

Section 4. Sections of the Lancaster Municipal Code is hereby amended and restated in its entirety to read as set forth in Exhibit “A” attached hereto.

Ordinance No. 1093

Page 2 ends

Section 5. Any ordinance previously adopted by the City Council shall be and is hereby repealed if and to the extent inconsistent with this Ordinance, provided, however, that each such ordinance shall otherwise remain in full force and effect.

Section 6. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is held for any reason 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 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 7. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published and posted pursuant to the provisions of law in that regard and this Ordinance shall take effect 30 days after adoption.

Ordinance No. 1093

Page 3 ends

I, Andrea Alexander, City Clerk of the City of Lancaster, do hereby certify that the foregoing ordinance was regularly introduced and placed upon its first reading on the __________ day of ________________, ____, and placed upon its second reading and adoption at a regular meeting of the City Council on the ____ day of ________________, ____, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST: APPROVED:
____________________________ ______________________________ ANDREA ALEXANDER R. REX PARRIS
City Clerk Mayor
City of Lancaster City of Lancaster
STATE OF CALIFORNIA }
COUNTY OF LOS ANGELES }ss
CITY OF LANCASTER }

CERTIFICATION OF ORDINANCE

CITY COUNCIL
I, ________________________________, ___________________________________ City of Lancaster, California, do hereby certify that this is a true and correct copy of the original Ordinance No. 1093, for which the original is on file in my office.

WITNESS MY HAND AND THE SEAL OF THE CITY OF LANCASTER, on this _________ day of ________________, ________.
(seal)
___________________________________

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“EXHIBIT A”
Amendment to Title 17 (Zoning) of the Lancaster Municipal Code Relating to Alcoholic Beverage Establishments

MIXED-USE ZONE

17.10.050 Uses and permit requirements.

A. Ratio of uses.

1. When a development is located on a project site that is located within 660 feet of an intersection of two major arterial streets, a minimum of 25 percent of the development shall be non-residential uses, as measured by ground floor area.

2. When a development is located on a project site that is located within 660 feet of an intersection of two secondary arterial streets, or an intersection of a major arterial with a secondary arterial, a minimum of 10 percent of the development shall be nonresidential uses, as measured by ground floor area.

3. Single-family structures shall not face arterial streets.

B. Uses and permit requirements.

Mixed Use - Uses Matrix

USES MU-N MU-C MU-E
P = permitted use/D = director's review/C = conditional use N/A = not allowed
Retail/Service:

Retail store P P P
Convenience market/neighborhood market* P P P
Grocery store/Supermarket/Drugstore* P P P
Personal services P P P
Tattoo/body piercing N/A D D
Pawn shops N/A D D
Restaurants/café/bakery/deli* P P P
Bar/nightclub/dance club* N/A C C
Art gallery P P P
Bank/credit union P P P
Entertainment (theater, live music, karaoke, comedy, etc.)* D D D Health and fitness services D D D
Automotive sales and services N/A C C
Automotive repair N/A D P
Gas station* D D P

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Car wash C C C
Nightclub without alcohol [C] [C] [C]
Office/Professional:

Professional office P P P
Medical/dental office P P P
Light industrial uses N/A N/A P
Lodging:

Hotel/motel* C P D
Bed and breakfast* D P D
Conference/meeting room space D P D
Public/Semi-Public:

Government office P P P
Day care center P P P
Church/religious institution C P D
Post office P P P
Private school, trade and vocational schools C P P
Recreation/museum/cultural D P P
Residential:

Detached single-family unit (4 or fewer subdivision) P N/A N/A Detached single-family unit (5 or more subdivision) P P N/A Condominium/apartment/studio/loft units (15 or fewer units) P P P Condominium/apartment/studio/loft units (16 or more units) C C C Assisted living facility (15 or fewer units) P P P
Assisted living facility (16 or more units) C C C
Live/Work units (new structure) P P P
Live/Work units (conversion of existing structure) D D D Temporary/Accessory/Other uses:

Home occupation/artist studio/home office P P P
Day care as residential accessory use D D D
Carriage unit (studio) located above detached garage P P N/A Outdoor sales and promotional activities D D D
Carnivals and circuses1 D D D
Christmas tree lots D D D
Automated banking, movie rental, food vending machines P P P Stealth wireless telecommunications facilities N/A D D
Prohibited uses:

Outdoor storage on private property

Page 3 of 3 ends

Manufacturing/heavy industrial
Adult only/sexually-oriented businesses
Check cashing/payday loans/bail bonds
Mini-storage
*Alcohol uses are subject to Chapter 17.42
1 Subject to the provisions of Chapter 9.46.

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“EXHIBIT A”
Amendment to Title 17 (Zoning) of the Lancaster Municipal Code Relating to Alcoholic Beverage Establishments

COMMERCIAL ZONE

17.12.040 Permitted uses.

The permitted uses of the C zone are grouped into categories of similar uses rather than an exhaustive list of single uses. Extensive examples are given for purposes of clarifying the types of uses allowed by each category. In addition, specific exceptions and development requirements have been applied to certain categories of uses where concerns may arise as to their impact on neighboring properties and the visual attractiveness of the city as a whole. The following categories of uses are permitted in the C zone subject to any stated exceptions, development requirements, and approval of the site plan as follows:

A. Existing Residential Uses. This category may continue to be used as a permitted use.

Expansion of existing residential uses shall be limited to a cumulative total of no more than 500 square feet of floor area.

B. Automobile, Motorcycle, Truck, Tractor and Boat Sales, Service, Repair, Accessories and Parts. This category includes but is not limited to motor vehicle dealerships; auto parts stores; tires, batteries and accessories stores; brake shops; muffler shops; radiator shops; repair shops, service stations, and similar uses. All repair activities shall be conducted within an enclosed building. Note: Auto repair uses and tire sales on lots within 300 feet of residentially zoned property shall be required to obtain a conditional use permit. (See Section 17.12.080A.)
This category does not include car washes; establishments engaged in the sale, rental, service or repair of heavy equipment; auto body and paint shops; auto upholstery shops; automobile impound yards; and similar uses.

C. Churches, Religious, Fraternal or Social Organizations. This category includes but is not limited to churches, temples, convents, monasteries, and other places used exclusively for religious worship, and the customary incidental educational and social activities therewith; temporary tent revival meetings (operated at one particular location and provided such location is not within 300 feet of any public park, school or residential zone, and not longer than 7 days in any 6-month period); fraternities; lodge halls; societies, and sororities.

This category does not include any use which could be construed as a privately owned business.

D. Communication Facilities and Services, Public and Private. This category includes but is not limited to communications equipment, duplicating, faxing services, lithographers, microwave stations, photocopying, photo engravers, printers or publishers, radio and television broadcast studios, telegraph offices, telecommunication/telecommuting offices and similar computer communications

Page 2 of 8 ends

network services, telephone repeater stations, and tourist information centers. Ground or roof mounted satellite antennae shall be screened from view.

This category does not include radio and television transmission towers or wireless telecommunication facilities. (See Section 17.40.640.)
E. Eating and Drinking Establishments. This category includes but is not limited to restaurants, cafes, delicatessens, fast food operations, ice cream shops, and take-out food operations; any of which may include outdoor dining. F. Financial Institutions and Services. This category includes but is not limited to banks, credit unions, finance companies, savings and loans, and similar uses.

This category does not include pawnshops, establishments which conduct check cashing services for a fee or donation, or establishments which do not loan money as part of their business operations.

G. Offices—Business, Government or Professional. This category includes but is not limited to general business offices; federal, state, county, city or special district offices, libraries and court facilities; associations; unions; and offices conducting accounting, dental, engineering, escrow, insurance, legal, medical, mortgage brokerage, real estate, security, and commodity brokerage, or similar professional services.

This category does not include bail bond services.

H. Public Safety Facilities and Services. This category includes but is not limited to ambulance services, fire stations, highway patrol stations, police stations, and similar uses.

I. Public Utilities. This category is limited to the following uses:

1. Publicly owned uses necessary to the maintenance of the public health, safety, convenience and welfare;

2. Water reservoirs, dams, treatment plants, gauging stations, pumping stations, tanks, wells, and any uses normal and appurtenant to the storage and distribution of water. Exception: This use is not subject to site plan review (Section

17.12.120).

J. Recycling Facilities. This category is limited to reverse vending machines and is subject to the criteria and standards of Section 17.40.300.

K. Rental Establishments. This category includes but is not limited to auto, clothing, equipment, furniture, hospital equipment, mini-storage, recreational vehicles, and similar rental uses.

This category does not include the rental of heavy equipment.

L. Repair Services. This category includes but is not limited to appliance repair, gunsmiths, jewelry repair, locksmiths, shoe repair, watch repair, and similar repair services. All repairs shall be conducted within an enclosed building.

This category does not include the repair of automobiles or heavy equipment.

M. Retail Sales Establishments. This category includes but is not limited to bona fide antique stores, apparel stores, appliance stores, bookstores (including used books),

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convenience market (without alcohol sales), craft stores, computer stores, department stores, grocery store/supermarket/drugstores (without alcohol sales), gift shops, hardware stores, jewelry stores, telephone stores, discounted and wholesale/warehouse type stores, and similar retail sales operations.

This category does not include adult-oriented businesses, , pawnshops, secondhand stores (does not include bona fide antique stores), surplus stores, and establishments engaged in the sale of heavy equipment, or establishments engaged in the sale of any item otherwise prohibited by law.

N. Schools—Business and Professional. This category includes but is not limited to art, barber, beauty, dance, music, real estate, and similar schools.

This category does not include any school specializing in gymnastics, health and fitness services, manual training,* martial arts, shop work,* or training in the repair and maintenance of machinery or mechanical equipment.* (*See Section 17.16.040P.) O. Services—Business or Personal. This category includes but is not limited to adult day care, adult day health care, answering service, bail bond services, barber and beauty shops, check cashing, credit bureaus, family day care home (large and small), day care center, dry cleaners and laundries, mortuaries, moving and storage, parcel delivery terminals, tailors, and other similar services.

This category does not include services which are industrial in nature such as pest control, industrial gases and chemicals, and similar services.

P. Other Uses. This category includes those uses which do not fall into any other C zone category, provided such uses are neither temporary, subject to director's review, nor uses subject to conditional use permit in this zone, and provided such uses are, in the opinion of the director, consistent with the purpose and intent of this zone and similar to other uses permitted herein.

17.12.070 Uses subject to director's review and approval.

If site plans or other pertinent information for the proposed use are first submitted to and approved by the director in accordance with Article VI of Chapter 17.32, premises in the C zone may be used for the following uses:

A. Access to property lawfully used for a purpose not permitted in the C zone provided no other practical access to such property is available and such access will not alter the character of the premises in respect to permitted uses in the C zone; B. Alcohol Beverage Establishments. This category is limited to the following uses below and shall be subject to the provisions in Chapter 17.42:
a. Alcohol Production with a minimum 25% and maximum up to 40% retail. A full menu shall be available at all times that alcoholic beverages are offered; b. Bona Fide Restaurant;
c. Convenience Market/Neighborhood Market (Beer and Wine only) with a Minor Use Permit subject to Section 17.42.060; and
d. Grocery Store/Supermarket/Drugstore.

Page 4 of 8 ends

C. Body piercing establishments;
D. Carnivals, subject to the provisions of Chapter 9.46; E. Christmas Trees and Wreaths. This use is limited to the seasonal sale of such items, between November 1st and December 25th, both dates inclusive, to the extent permitted by other statutory and ordinance provisions. Any structures, facilities and materials used in connection with the sale of Christmas trees and wreaths shall be removed from the premises by December 31st of the same calendar year, and the property restored to a clean condition;
F. Consignment store;
G. Crops, field, tree, bush, berry and row, including nursery stock, flowers and vines, provided that no sludge or biosolid material shall be applied to any land as a soil amendment, roadside stands, retail sale of crops grown on the premises, and signs advertising products produced on the premises;
H. Day care center;
I. Health and Fitness Services. This category includes but is not limited to exercise/aerobic centers, figure salons, gymnasiums, health and fitness centers, health spas, martial arts schools, and similar uses;
J. Outdoor Sales and Promotional Activities. Outdoor sales and promotional activities in private parking lots, on private pedestrian ways, and on public sidewalks, incidental to a use conducted primarily within a building located on the premises as follows:

1. Parking lot sales may be allowed only where:
a. The use on the site complies with current parking standards, and b. No more than 10% of the provided parking spaces are to be used for this purpose, and
c. Placement of the activity in the parking lot shall not significantly disrupt the circulation pattern on the site, and
d. Such sales are scheduled between January 15th and November 15th and shall not exceed a total of 12 days in any calendar year.

2. Private pedestrian way sales may be allowed where:
a. Placement of the activity on the pedestrian way allows for a clear aisle for pedestrian traffic of not less than 5 feet in width, and b. Such sales are scheduled between January 15th and November 15th and shall not exceed a total of 12 days in any calendar year.

3. Sidewalk sales may be allowed where:
a. Placement of the activity allows for a clear aisle of not less than 5 feet in width, and
b. Such sales are scheduled between January 15th and November 15th and shall not exceed a total of 12 days in any calendar year, and

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c. Insurance has been obtained by type and in an amount specified by the city attorney, and
d. An encroachment permit has been obtained from the department of building and engineering services;
K. Reserved;
L. Pawnshops;
M. Pumpkins and Other Seasonal Agricultural Products. This use is limited to the sale of such items from October 1st through Thanksgiving Day, to the extent permitted by other statutory and ordinance provisions. Any structures, facilities and materials used for the sale of pumpkins and other seasonal agricultural products shall be removed from the premises not later than 7 days following the closure of the sales operation. No other outdoor sales shall be permitted until property has been restored to a clean condition;
N. Recycling Facilities. The following recycling facilities may be allowed:

1. Small Collection Facility. Subject to the criteria and standards of Section

17.40.310,

2. Large Collection Facility. Subject to the criteria and standards of Section

17.40.320;
O. Residential Uses. This category is limited to the following uses:

1. Congregate living health facility,

2. Mobilehome or other residence for use by caretaker and his immediate family in accordance with Article VIII of Chapter 17.40,

3. Residential care facility for the elderly,

4. Rooming and boarding houses,

5. State authorized, certified or licensed family care home, foster home or group home serving 6 or fewer mentally disordered or otherwise handicapped persons or dependent and neglected children, if such homes provide care on a 24 hour a day basis. (Required by Section 5116 of the Welfare and Institutions Code); P. Secondhand stores;
Q. Shopping centers and other commercial centers of more than 2 net acres but no greater than 10 net acres. (See definition in Section 17.04.240.) This category may include many of the categories listed for this zone;
R. Storage containers for goods and merchandise during the holidays or for special events.

Placement shall be within loading areas or utilize nonessential parking areas behind the buildings so as not to restrict the use of heavily used parking areas during such holidays or special events. The use of such containers shall not exceed 3 months in any calendar year;
S. Surplus stores;
T. Tattoo parlors;

Page 6 of 8 ends

U. Minor, Co-located and Stealth Wireless Telecommunication Facilities. This category includes all minor wireless telecommunication facilities, as defined by this chapter, subject to Section 17.40.640 and the height limits of the C zone. Co-located telecommunication facilities within 100 feet of property with a residential zoning designation may be constructed over the required 35 foot height limit subject to review by the director of community development. Stealth telecommunications facilities located more than 100 feet from residentially zoned property may be constructed over the 50 foot height limit, subject to review by the director of community development.

See Section 17.40.640 for submittal requirements and design standards; V. Small wind energy systems (co-located), subject to the requirements of section

17.40.690.

17.12.080 Uses subject to conditional use permits.

The uses subject to permit in the C zone are grouped into categories of similar uses rather than exhaustive lists of single uses. Extensive examples are given for purposes of clarifying the types of uses included in each category. The following categories of uses may be permitted in the C zone, provided that a conditional use permit has first been obtained as provided in Article I of Chapter 17.32, that such permit is in full force and effect, and that the uses are in conformity with conditions of such permit for:

A. Those uses identified in Section 17.12.040, Permitted uses, as requiring a conditional use permit. This category includes but is not limited to automobile repair and tire sales.

B. Activity node (development of) subject to the requirements of Section 17.08.365.

C. Entertainment and Recreation. This category includes but is not limited to amusement rides; bingo, billiard, dance, or pool halls; bowling alleys; card rooms; carnivals and circuses for longer than 10 days; golf driving ranges; miniature golf courses; night clubs; shooting ranges; skating rinks; all types of theaters; video game arcades, and similar uses.

D. General Uses. This category includes only the following uses:

1. Automobile body shop;

2. Automobile upholstery shop;

3. Alcohol beverage establishments. This category is limited to the following uses below and shall be subject to the provisions in Chapter 17.42 :
a. Bar,
b. Convenience Market/Neighborhood Market (Beer, Wine and Spirits) c. Liquor store,
d. Nightclub with alcohol sales;

4. Butane and propane service stations;

5. Car wash;

6. Dry cleaning plant—Wholesale;

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7. Earth stations;

8. Fortunetelling;

9. Heliports or helistops;

10. Laundry plants—Wholesale;

11. Nightclub without alcohol;

12. Model studio;

13. Radio or television transmission towers;

14. Revivals or tent meetings, of more than 7 days' duration;

15. Textile products manufactured from previously prepared materials.

E. Long-Term Health Care Facility.

1. Intermediate care facility;

2. Intermediate care facility/developmentally disabled;

3. Intermediate care facility/developmentally disabled—Habilitation;

4. Intermediate care facility/developmentally disabled—Nursing;

5. Nursing facility;

6. Skilled nursing facility.

F. Public Utilities. This category includes only the following uses:

1. Electric transmission substations and generating plants including microwave facilities used in conjunction therewith;

2. Gas distribution depots;

3. Publicly owned uses necessary to the maintenance of the public health, convenience or general welfare;

4. Public utility service yards.

G. Residential Uses. This category includes only the following uses:

1. Multiple-family project, as a separate development in the C zone (subject to the provisions of the HDR-1 zone except where specifically modified by the conditional use permit);

2. Multiple-family project, combined with commercial development as a mixed use where said apartments are attached to the commercial building (for example, as the second story of a commercial retail center), subject to the provisions of Section 17.12.230, Design requirements;

3. Transitional homeless shelters.

H. Shopping Centers and Other Commercial Centers of Greater Than 10 Net Acres. This category may include many of the categories listed for this zone.

I. Transient Residential. This category is limited to only the following uses:

Page 8 of 8 ends

1. Hotels;
a. Alcohol sales in conjunction and incidental to the hotel shall be subject to a director’s review and subject to Section 17.42.

2. Motels;

3. Recreational trailer parks in accordance with Section 17.40.540;

4. Travel trailer parks in accordance with Section 17.40.550.

J. Structures over 50 feet or 3 stories in height.

K. Major Wireless Telecommunication Facilities. This category includes all major wireless telecommunication facilities subject to the requirements of Section 17.40.640.

Co-located and stealth communication facilities are subject to director's review.

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“EXHIBIT A”
Amendment to Title 17 (Zoning) of the Lancaster Municipal Code Relating to Alcoholic Beverage Establishments

INDUSTRIAL ZONE

17.16.040 Permitted uses—I zones.

The permitted uses of the I zones are grouped into categories of similar uses rather than exhaustive lists of single uses. Extensive examples are given for purposes of clarifying the types of uses allowed by each category. The following categories of uses are permitted in all of the I zones except where specific references limiting certain uses to the LI, or HI zones are made. All uses are subject to any stated exceptions, development requirements, and approval of a site plan as follows:

A. Existing Residential Uses. Such uses may continue to be used as a permitted use provided that such uses may not be expanded by a cumulative total of more than 500 square feet of floor area and comply with Article VII of Chapter 17.32.

B. Commercial Uses.

1. Existing Nonconforming Commercial Uses. Such uses may continue to be used as a permitted use provided that such uses may not be expanded beyond their ability to meet current parking requirements, and design and performance standards related to the expansion, on their existing site.

C. Aircraft-Related Uses. This category includes but is not limited to the manufacture, storage, maintenance, repair or overhaul of aircraft or missile components, parts, accessories, equipment and power plants and is permitted only in the HI zone.

D. Automobile, Boat, Equipment, Motorcycle, Truck, Tractor, Sales, Service, Repair, Accessories and Parts. This category includes but is not limited to motor vehicle dealerships including recreational vehicles, auto parts stores: tires, batteries and accessory stores; body and frame shops, auto upholstery shops, brake shops, car wash, muffler shops, radiator shops, repair shops, service stations, and similar uses. All repair activities within the LI zone shall be conducted within an enclosed building. Auto service and repair uses, body and frame shops, heavy equipment repair and tire sales on lots within 300 feet of residentially zoned property shall be required to mitigate any conditions which are detrimental, or potentially detrimental, to the reasonable use of the residentially zoned property to the satisfaction of the Director.

This category does not include automobile impound yards (See Section 17.16.060), automobile wrecking yards, or salvage operations, (See subsection E of this section.) E. Automobile Dismantling Yards, Scrap Metal Processing Yards, and Similar Metal Salvage Operations. This category includes but is not limited to automobile impound yards,

Page 2 of 7 ends

automobile wrecking, metal salvage operations, and junk and salvage operations. All uses in this category shall be permitted only in the HI zone. Any such use in this category on lots within 300 feet of residentially zoned property shall be conducted within an enclosed building and required to mitigate any conditions which are detrimental, or potentially detrimental, to the reasonable use of the residentially zoned property to the satisfaction of the Director. (See subsection A.10. or 15. of Section 17.16.220, as applicable.) This category does not include recycling facilities as defined in this title or the smelting of metals. (See Section 17.16.070.)
F. Building Trades and Related Uses. This category includes, but is not limited to appliance sales, blueprint services, building supplies, cabinet making, carpenter shop, contractor equipment yard, electricians and electrical supply, engineers and surveyors, fence contractors, glass stores, janitorial service and supply, landscape materials (including nurseries), lumber yards, pool contractors, plumbing sales, spa sales, truss manufacturing, wood stove sales and similar uses. Batch plants and concrete transit mix uses shall be permitted only in the HI zone provided that batch plants and concrete transit mix uses within 300 feet of residentially zoned property shall be required to mitigate any conditions which are detrimental, or potentially detrimental, to the reasonable use of the residentially zoned property to the satisfaction of the Director. (See Section 17.16.220.A.10. and Section

17.16.220.B)
G. Communication Facilities and Services, Public and Private. This category includes but is not limited to communications equipment, duplicating, lithographers, microwave stations, photocopying, photo engravers, printers or publishers, radio and television broadcast studios, telegraph offices, telephone repeater stations, tourist information centers, and similar uses.

This category does not include radio and television transmission towers or wireless telecommunication facilities. (See Section 17.40.640).

H. Food Manufacturing, Processing, Wholesale Sales and Storage. This category includes but is not limited to bottling plants, breweries, coffee roasting, dairy products, dextrine manufacturing, fruit and produce, malt products, meat processing, oleomargarine, sodium glutamate, soft drinks, vitamin tablets, and similar uses. All such uses within the LI zone shall be conducted within an enclosed building.

This category does not include dairies, lard manufacturing, pickles, sausage, sauerkraut, slaughter houses, distillation of vinegar, or the canning of other fish or meats and similar uses. (See Section 17.16.070.)
I. Manufacturing—General. This category includes but is not limited to assembly plants, automotive, beds and bedding manufacturing, billboards, bone products, building materials, brushes, ceramics, clay and cement products, doors, drugs, dry goods, electric and electronic products, felt, fiberglass, fur products, furniture, glass, hair products, heating equipment, jewelry, leather products, machine shops, mobilehomes and factory-built housing, paper products, plastic products, recreational vehicles, springs, starch, stone products, textiles, tobacco products, tools, uses which manufacture products from recycled materials, welding, wood products, wool and woolen products, wrought iron and similar manufacturing uses. All such uses within the LI zone shall be conducted within an enclosed

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building. Any such use in this category on lots within 300 feet of residentially zoned property shall be required to mitigate any conditions which are detrimental, or potentially detrimental, to the reasonable use of the residentially zoned property to the satisfaction of the Director. (See Section 17.16.220A.10. and Section 17.16.220.B) This category does not include cement manufacturing, explosives, foundries, paper manufacturing, manufacturing of plastics, or tanning of animal hides. (See Section

17.16.070.)
J. Public Safety Facilities and Services. This category includes but is not limited to ambulance service, fire stations, highway patrol stations, municipal maintenance yards, police stations, and similar uses.

K. Public Services and Utilities. This category includes but is not limited to the following uses:

1. Electric transmission substations including microwave facilities used in conjunction therewith;

2. Gas Distribution Depots. This use is permitted in the HI zone only;

3. Publicly owned uses necessary to the maintenance of the public health, convenience or general welfare, including federal, state, county, city, or special district offices, libraries and court facilities;

4. Public utility service yards;

5. Water reservoirs, dams, treatment plants, gauging stations, pumping stations, tanks, wells, and any use normal and appurtenant to the storage and distribution of water.

Exception: This use is not subject to site plan review (Section 17.16.120).

L. Recycling Facilities. This category includes but is not limited to reverse vending machines, small and large collection facilities and light processing facilities. Heavy processing facilities shall be permitted in the HI zone only. All uses in this category are subject to the criteria and standards of Section 17.40.290. (See definitions in Section 17.04.240.) This category also includes uses which reuse recyclable materials.

M. Rental Establishments. This category includes, but is not limited to, automobile, clothing, equipment (including heavy equipment in the HI zones), furniture, hospital equipment, recreational vehicles, and similar rentals.

N. Repair Services. This category includes but is not limited to appliance repair, gunsmiths; heating, refrigeration, and air conditioning repair; jewelry repair, locksmiths, shoe repair, watch repair, and similar repair services.

O. Research and Development. This category includes but is not limited to laboratories and facilities for scientific research, development and testing including administrative offices.

This category does not include the development and testing of hazardous materials, biological or chemical warfare agents, or explosives (See Section 17.16.070.) P. Schools—Specialized Training. This category includes but is not limited to manual training, shop work, or the repair and maintenance of machinery or mechanical equipment.

This category does not include business and professional schools see Section 17.16.060

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Q. Sexually Oriented Businesses. This category includes but is not limited to adult bookstores, adult motels, adult motion picture theaters, adult theaters, adult cabarets, escort agencies, massage parlors, semi-nude model studios, and similar uses subject to the requirements of Ordinance No. 619 and is permitted only in the HI zone. (See Article IV of Chapter 17.16.) R. Warehousing, Wholesaling and Storage. This category includes but is not limited to cold storage distributors, ministorage warehouse, moving van and storage, truck terminals, and warehouses. (See Section 17.16.220.A.10.)
S. Water reservoirs, dams, treatment plants, gauging stations, pumping stations, tanks, wells, and any use normal and appurtenant to the storage and distribution of water. Exception:

This use is not subject to site plan review. (Section 17.16.120.) T. Other Uses. This category includes those uses which do not fall into any other category, and are not temporary uses, uses subject to Director's Review, or uses subject to permit in this zone, which the Director deems the use consistent with the purpose and intent of this zone and similar to other uses permitted herein.

17.16.060 Uses subject to director's review and approval.

If site plans and/or other pertinent information required by the Director for the proposed use are first submitted to and approved by the Director in accordance with Article VI of Chapter 17.32, premises in the I zones may be used for the following uses:

A. Uses subject to Director's Review in all I zones:

1. Auctions and swap meets,

2. Alcohol Beverage Establishments. This category is limited to the following uses below and shall be subject to the provisions in Chapter 17.42:
a. Alcohol Production;
b. Bona Fide Restaurant;
c. Convenience Market/Neighborhood Market (Beer and Wine only) with a Minor Use Permit subject to Section 17.42.060; and
d. Grocery Store/Supermarket/Drugstore.

3. Boarding kennels,

4. Carnivals, subject to the provisions of Chapter 9.46,

5. Schools—Business and Professional. This category includes but is not limited to art, barber, dance, music, real estate, and similar schools.

6. Christmas trees and wreaths, the sale of, between November 1st and December 25th, both dates inclusive, to the extent permitted by other statutory and ordinance provisions. Any structures, facilities and materials used for the sale of trees and wreaths shall be removed from the premises by December 31st of the same calendar year, and the property restored to a clean condition,

7. Crops, field, tree, bush, berry and row, including nursery stock, flowers and vines, provided that no sludge or biosolid material shall be applied to any land as a soil

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amendment. Roadside stands, retail sale of crops grown on the premises, and signs advertising products produced on the premises,

8. Day nursery, children,

9. Dwelling units, as follows:
a. One dwelling unit within a building on the same lot or parcel of land which is legally being used so as to require the continuous supervision of a caretaker and his immediate family, or
b. Dwelling units within a building or premises used for agricultural purposes, which dwelling units are occupied only by persons employed on the same premises, and their immediate families, or
c. Where subsection A.7.a. of this section permits the use of a dwelling unit for a caretaker, a mobilehome containing one dwelling unit may be used in lieu of such dwelling unit for a period not to exceed 6 consecutive months in any 12 month period. Or, if intended for a residence for up to the maximum limit of 5 years, the mobilehome shall comply with the provisions of Section 17.08.370.C for foundation systems,

10. Parking. Joint usage or leased (see Section 17.16.210.B),

11. Wild Animals. Wild animals may be temporarily used, kept or maintained for a period not to exceed:
a. Ten days in conjunction with the lawful operation of a circus or animal exhibition, or
b. Sixty days where used in motion picture and television production, except that the Director may, where he finds that such extension is consistent with the intent of this section and neither detrimental to the public welfare or to the property of other persons located in the vicinity thereof, extend such time period for not to exceed 30 additional days, and
c. Provided said animals are used, kept, or maintained pursuant to and in compliance with, all regulations of the city of Lancaster and the Los Angeles County department of animal control,

12. Minor co-located and stealth wireless telecommunication facilities subject to the requirements of Section 17.60.640,

13. Solar electrical generating plants only, in the HI zone. (Note: All other electrical generating plants require a conditional use permit in the HI zone; see Section

17.16.070C.1);

14. Small wind energy systems (co-located), subject to the requirements of section

17.40.690;

15. Emergency shelters, only in the LI zone.

16. Entertainment and Recreation. This category includes, but is not limited to bowling alleys, golf driving ranges, shooting ranges, video game arcades, and similar uses. This shall not include dance halls, pool halls and night clubs (see section 17.16.070.A.5)

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B. Uses subject to Director's Review only in the HI zone:

1. Crushing of used asphalt or concrete, rock, or other materials for use as an aggregate.

2. Major wireless telecommunication facilities located more than 1,000 feet from residentially zoned property, subject to the requirements of Section 17.40.640.

Facilities located within 1,000 feet of residentially zoned property shall be subject to a conditional use permit (see Section 17.16.070.A.4).

C. Other Uses. Uses which do not fall into any other category, and are not temporary uses, uses subject to Director's Review, or uses subject to permit in these zones shall be subject to interpretation of the Director.

17.16.070 Uses subject to conditional use permits.

The uses subject to permit in the I zones are grouped into categories of similar uses rather than exhaustive lists of single uses. Extensive examples are given for purposes of clarifying the types of uses in each category. The following categories of uses may be permitted in the I zones provided a conditional use permit has first been obtained as provided in Article I of Chapter

17.16, and while such permit is in full force and effect in conformity with conditions of such permit for:

A. Uses subject to permits in all I zones:

1. Alcohol beverage establishments. This category is limited to the following uses below and shall be subject to the provisions in Chapter 17.42:
a. Bar,
b. Convenience Market/Neighborhood Market (Beer, Wine and Spirits) c. Liquor store,
d. Nightclub with alcohol sales;

2. Radio and television transmission towers,

3. Research and Development. This category includes but is not limited to laboratories and facilities for scientific research, development and testing including administrative offices involving the use of hazardous materials. Agricultural and biological research involving sludge or biosolid material shall be conducted only within an enclosed building or suitable containment vessel.

This category does not include the development and testing of biological or chemical warfare agents or explosives;

4. Major Wireless Telecommunication Facilities. This category includes all major wireless telecommunication facilities in the LI zone and major wireless telecommunication facilities in the HI zone within 1,000 feet of residentially zoned property subject to the requirements of Section 17.40.640. Co-located and stealth communication facilities are subject only to Director's Review and shall not require a conditional use permit;

5. Pool Halls, Dance Halls, and Nightclubs without alcohol.

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6. Churches
B. Uses subject to permits in the HI zone:

1. Electrical generating plants, all types except solar (see Section 17.16.060A.13),

2. Storage. This category is limited to the following:
a. Gas, above ground storage in excess of 500,000 cubic feet, b. Storage of oil, gasoline or petroleum products in any quantity exceeding 100,000 gallons,

3. Waste Disposal. This category is limited to waste disposal facilities as defined in Section 17.04.240;
C. Uses subject to permits only in the HI zone:

1. Agricultural Related Uses. This category includes but is not limited to cattle sales yards, dairies, hog ranches and livestock feed yards; provided that, no sludge or biosolid material shall be applied to any land as a soil amendment,

2. Chemical Manufacturing. This category includes but is not limited to the manufacture of: ammonia, asphalt, caustic soda, celluloid, cellulose, chlorine gas, coal tar products, creosote, fertilizers, glue, guncotton, gypsum, hydrocyanic acid products, lime, phenol, plastics, potash, pyroxylin products, size, soda ash, synthetic ammonia, and similar uses. All uses in this category will be subjected to close scrutiny in terms of the relative safety of such uses and their potential effects on the community with emphasis on their impact on odor and air quality in general; specifically their handling of hazardous materials and waste.

This category does not include the manufacturing of food,

3. Food Manufacturing, Processing, Sale and Storage. This category is limited to the following food products: canning of fish or meat, fat rendering, gelatin, lard, meat packing, pickles, sausage, sauerkraut, slaughterhouses, tallow and vinegar,

4. Hazardous Waste Facility. This category is subject to the provisions of Article VII of Chapter 17.40,

5. Manufacturing—General. This category is limited to the following: explosives, smelting and casting of metals, paper manufacturing, plastic manufacturing or tanning of animal hides,

6. Pest control;
D. Uses subject permits to the LI and HI zones: College or university campuses.

E. Other Uses. Uses which do not fall into any other category, and are not temporary uses, uses subject to Director's Review, or uses subject to permit in these zones shall be subject to interpretation of the Director.

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“EXHIBIT A”
Amendment to Title 17 (Zoning) of the Lancaster Municipal Code Relating to Alcoholic Beverage Establishments
Chapter 17.42 ALCOHOLIC BEVERAGE ESTABLISHMENTS

17.42.010 Purpose and intent.

The purpose of adopting regulations for the sale of alcoholic beverages is to ensure that such sales will not adversely affect surrounding residents, businesses, and institutions; and to ensure that any such use operates in a manner compatible with existing and future adjacent uses.

This chapter alone does not allow or permit alcoholic beverage establishments, but only applies to such establishments where otherwise allowed or permitted within an involved applicable land use zoning district. This chapter does not authorize the operation of alcoholic beverage establishments in any land use district where they are not otherwise allowed or permitted by the applicable involved zoning district's regulations.

17.42.020 Definitions.

For the purpose of this chapter, the following words or terms shall be defined as follows:
"Alcoholic beverage" means a fermented or distilled beverage including alcohol, spirits, liquor, wine, beer and every liquid or solid containing alcohol, spirits, wine or beer which contains onehalf of one percent or more of alcohol by volume which is fit for beverage purposes, either alone or when diluted with other substances, and sale of which require a license from the state ABC. "Alcoholic beverage control (ABC)" means the California State Department of Alcoholic Beverage Control.
"Alcoholic beverage establishment" means any establishment involving the sale of alcohol. “Alcohol Production” means an establishment where beer, wine and other spirits are prepared bottled, stored and sold for on- or off-site consumption. Tasting rooms or seating areas may be provided on site. Alcohol production is permitted in the commercial zones (C, CPD, MU zones) if there is a minimum of 25% and maximum up to 40% square footage of total floor area dedicated to retail and a full menu available at all times that alcoholic beverages are offered.

Alcohol production shall be permitted in the industrial zones. “Bar” includes establishments used primarily for the sale or dispensing of alcoholic beverages for on-site consumption and that are not part of a restaurant. "Bona fide restaurant" includes establishments primarily engaged in the preparation and retail of food and/or beverage for on-site consumption. A full menu shall be available at all times that alcoholic beverages are offered.
"Convenience market/neighborhood market" means a retail establishment up to 5,000 square feet utilized for the sale of prepackaged food products, household items, and soft drinks. Alcohol sales shall be limited to 5% maximum square footage of the sales floor area for sale and display

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of alcohol. The sale of spirits shall be subject to a conditional use permit and distance requirements. Convenience markets/neighborhood markets may be in conjunction with a fueling station.
"Enforcing officer" includes any city public safety officer, city community services officer, county sheriff's deputy, and any other public officer or employee designated by the city manager to issue administrative citations in accordance with Section 17.42.160. "Entertainment" means any form of entertainment, whether live, televised audio or video taped, including, but not limited to, any type of performance for the purpose of amusing the audience, such as: dancing, singing, playing a musical instrument or acting. "Existing deemed approved alcoholic beverage establishment" means any establishment lawfully engaged in the sale of alcoholic beverages for on- or off-sale consumption which is in existence prior to the effective date of this chapter, retains the same type of alcoholic beverage license and continues to legally operate without substantial change in the mode or character of operation. "Grocery store/Supermarket/Drugstore" means any retail establishment larger than 5,000 square feet primarily selling food product, household merchandise and pharmaceutical drugs. Alcohol sales shall be limited to 10% maximum square footage of the sales floor area for sale and display of alcohol. This is not in conjunction with a fueling station. "Liquor store" includes any establishment which primarily sells beer, wine, and/or other spirits for off-site consumption. The display sales floor area of alcohol exceeds 5% square footage of the sales floor area. .
"Mixed-use development" means a building or combination of buildings intentionally designed as a single development to accommodate a combination of residential and commercial uses. "Mixed-use district" means any physical location designated by the city of Lancaster general plan or zoning map as a mixed-use district.
"Nightclub" means a place of entertainment, typically open at night, usually serving food and/or alcoholic beverages, which may have a floor show and/or offer live or recorded entertainment or music and/or space for dancing.
"Operator" means any person who has an ownership interest, in any manner, in an alcoholic beverage establishment, including, without limitation, a corporation and each of its officers, directors and stockholders; a partnership and each of its partners; a limited liability company and each of its managing members.
"Owner" means and includes any person with a recorded ownership interest in, or a right of possession, control or use of the premises on which an alcoholic beverage establishment is located, including all persons shown as owners on the last equalized assessment roll of the county assessor's office. Owners include property managers and persons with powers of attorney, executors of estates, trustees, or who are court appointed administrators, conservators, guardians or receivers.
"Planning commission" means the planning commission of the city of Lancaster. "Responsible person" means an operator of an alcoholic beverage establishment, an operator's on-site manager(s), an operator's employees and/or a property owner, as defined herein.

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"Sales floor area" means the calculation of area for the sale and display of specified products, including but not limited to alcoholic beverages, fresh meat and fresh produce. The calculation of sales floor area percentage shall be based on the gross floor area of the premises, including any warehousing or storage areas and shall include actual product display areas and reasonable public access aisles within or adjacent to said display area. "Substantial change in mode or character of operation" means and includes, but is not limited to, the following situations:

1. The alcoholic beverage establishment has changed, or proposes to change, its type of retail liquor license with the department of alcoholic beverage control;

2. An alcoholic beverage establishment increases floor area by more than 20%;

3. The alcoholic beverage establishment proposes to reinstate alcohol sales after the retail liquor license has been revoked or suspended for a period greater than 90 days by the department of alcoholic beverage control; or

4. The establishment is a bona fide restaurant that adds entertainment, except for nonamplified solo or similar entertainment on an occasional basis, which does not occupy more than 50 square feet or substantially change the character of the restaurant operation.

17.42.030 Uses and Permit Requirements
Type of Establishment Alcohol
Sales
Permitted Zones Permit
Required
Review
Authority
Alcohol Production Beer, Wine
and Spirits LI and HI DR
Development
Services
Director
Alcohol Production with
minimum 25% and maximum
up to 40% retail and a food
menu
Beer, Wine
and Spirits MU, C, and CPD DR
Development
Services
Director
Bar Beer, Wine
and Spirits

MU, C, CPD, LI
and HI CUP Planning Commission
Bona Fide Restaurant Beer, Wine
and Spirits

MU, C, CPD, LI
and HI DR
Development
Services
Director
Convenience Market/
Neighborhood Market
Beer and
Wine

MU, C, CPD, LI
and HI MUP
Development
Services
Director
Beer, Wine
and Spirits

MU, C, CPD, LI
and HI CUP Planning Commission
Grocery
Store/Supermarket/Drugstore
Beer, Wine
and Spirits

MU, C, CPD, LI
and HI DR
Development
Services
Director
Alcohol Sales in Conjunction
and Incidental to a Hotel
Beer, Wine
and Spirits MU, C, and CPD, DR Planning Commission

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Liquor Store Beer, Wine
and Spirits

MU, C, CPD, LI
and HI CUP Planning Commission
DR: Director’s Review
CUP: Conditional Use Permit
MUP: Minor Use Permit

17.42.040 Conditional use permit—Distance requirements.

A. Alcoholic beverage establishments that require a conditional use permit shall adhere to the distance requirements as specified below:

Alcoholic Beverage Establishments
Type of Establishment Distance Requirement
Religious Assembly 300'
Public/Private School (K-12) 1,000'
Day Care Center 300'
Residential Use or Residentially Designated Property 300' Existing Alcoholic Beverage Establishment 500'
Public Park 500'
Hospital 500'
B. Measurement of Distance. The distance requirement shall be measured in a straight line from the closest property line to the closest property line.

17.42.050 Findings.

A. That the proposed use will be located within a zone which permits alcoholic beverages to be sold, served, or given away for on-sale or off-sale consumption, as the case may be, upon obtaining a conditional use permit;
B. That the proposed use will not adversely affect nearby residents and facilities primarily devoted to use by children, families, and the general public, after giving consideration to the distance or proximity of the proposed alcoholic beverage establishment to residential districts, schools (public or private), day care centers, public parks, playgrounds and other recreational facilities, churches or other places of religious worship, hospitals, clinics or other health care facilities; and C. That the proposed use serves the public convenience and necessity.

17.42.060 Minor use permit
A. Applicability. A minor use permit shall be filed subject to the uses and requirements table in Section 17.42.030.

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B. Project Notice. A notice for a minor use permit shall be mailed ten (10) calendar days before the scheduled action to the following, unless stated otherwise in this code

1. Owner(s) and applicant;

2. All owners of property located within a 500-foot radius of the exterior boundaries of the subject site, as shown on the County’s last equalized assessment roll. If the project site is located within a multiple tenant commercial or industrial center, all tenants or property owners, if different, within the center shall be mailed the notice;

3. Persons Requesting Notice. A person who has filed a written request for notice with the director of development services within one year prior to the action

4. The development services director may require additional notification requirements such as site posting and increased notification radius based upon the possible impacts of the project.

C. Reviewing Authority. The development services director is the decision maker that approves or denies an application. The development services director may refer an application to Planning Commission and/or City Council for a decision on the application.

D. Conditions of approval. In approving a minor use permit, the approving authority may impose such conditions as deemed necessary to ensure that the minor use permit will accordance with the findings.

17.42.090 Exceptions—Specific plan areas.

The requirements of this chapter shall not apply to areas of the city for which a specific plan has been adopted pursuant to Section 65450 of the Government Code of the state of California if the adopted specific plan contains regulations regarding alcoholic beverage establishments.

17.42.100 Existing deemed approved establishments selling alcoholic beverages.

Any establishment lawfully existing prior to the effective date of this chapter and licensed by the state for the retail sale of alcoholic beverages for on-sale or off-sale consumption shall be considered to have a "deemed approved" status and shall only be required to obtain the necessary permits for a "substantial change in mode or character of operation" as described in Section

17.42.020, or for a revocation or expiration of "deemed approved" status as set forth in Section

17.42.130. The distance requirements set forth in Section 17.42.040 shall not apply to any existing deemed approved alcoholic beverage establishment.

17.42.110 Performance standards; public nuisance.

A. The operator of an alcoholic beverage establishment, whether operating with a "deemed approved" status or pursuant to a conditional use permit, minor use permit or director’s review shall use and maintain the premises and conduct the business in a manner that comports with all applicable local, state and federal law, including but not limited to, the California Business & Professions Code, the Lancaster Property Maintenance ordinance (codified at Chapter 8.28), and the Lancaster Zoning ordinance (codified at Title 17).

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Lawful property maintenance and business operations shall include, but are not limited to, the following:

1. The premises shall be maintained without the presence of garbage, junk, trash, debris or other miscellaneous items in exterior areas except in approved trash collection containers/enclosures.

2. The premises, including any surface of a structure, sidewalk, curb, ground surface, vehicle, tree, shrub, rock or other tangible item that is visible from publicly or privately owned real or personal property, shall be maintained free of graffiti. All graffiti shall be removed within 72 hours from the operator's first observation of graffiti or receipt of verbal or written notification of such graffiti by any enforcing officer as defined in this chapter.

3. The premises shall be maintained with all signage required by applicable state and local law, including but not limited to signs prohibiting loitering, public drinking and/or the presence of open alcoholic beverage containers on the premises.

4. The establishment shall be maintained in such a manner that signs, refrigerator cases, promotional displays, equipment and/or any other items do not obstruct the view of the interior of the establishment from the parking lot and public street or other right-ofway.

5. The premises shall be maintained without the presence of exterior public telephones.

Any existing public telephone shall be removed within 30 calendar days from the effective date of the ordinance from which this chapter is derived.

6. The operator of the establishment shall maintain a current and valid city business license and shall conduct business in full accordance with any and all conditions imposed thereon.

7. The operator shall not sell, furnish, give or permit the sale, furnishing or giving of an alcoholic beverage to an obviously intoxicated person or to a habitual or common drunkard.

8. The operator shall not sell, furnish, give or permit the sale, furnishing or giving of an alcoholic beverage to any person under 21 years of age, or knowingly allow such person to consume alcoholic beverages on the premises.

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f. Engaging in illegal drug activity or prostitution;
g. Trafficking in stolen goods;
h. Harassing passersby or business patrons;
i. Panhandling;
j. Engaging in acts of vandalism;
k. Otherwise engaging in conduct that is unlawful and/or constitutes a nuisance.

10. The operator shall take all reasonable steps to ensure the conditions and activities on the property on which the alcoholic beverage establishment is located do not constitute a public nuisance. For purposes of this chapter, "reasonable steps" includes, without limitation, the following:
a. Requesting those persons engaging in conduct that constitutes a nuisance to cease that conduct, unless the operator has reasonable cause to believe such request may jeopardize his or her personal safety.
b. Calling the city's law enforcement and/or public safety personnel if the operator's attempts to abate the nuisance conduct have been unavailing or if the operator has reasonable cause to believe such attempts may jeopardize his or her personal safety.
c. Timely undertaking actions to address conditions that facilitate loitering and other nuisance activity on the premises, such as removing furniture from areas adjacent to the entry of the establishment, prohibiting persons from using any portion of the premises for the installation and/or operation of a temporary business or other use, and/or other preventive actions.

B. The city council finds and declares that it is unlawful and a public nuisance for a person to use or maintain, or to permit the use or maintenance of, property on which an alcoholic beverage establishment is located, or to conduct the business or permit the business to be conducted in a manner that is contrary to the requirements set forth in this Section

17.42.110, any city or state permits, licenses and/or approvals, and/or all other applicable sections of this Code, state or federal law or regulation, or that otherwise poses a threat to public health, safety and welfare.

C. An operator shall be deemed responsible for the act or omission of any on-site manager and/or employee who uses or maintains, or permits the use or maintenance of, property on which an alcoholic beverage establishment is located, or who conducts the business or permit the business to be conducted, in violation of this chapter.

D. Upon the sale or transfer of ownership of an alcoholic beverage establishment to a bona fide third party, previous findings of public nuisance uses, conditions and activities before such sale or transfer of ownership shall not be imputed to the new owner, unless the city determines that the sale or transfer of ownership is not to a bona fide third party.

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17.42.120 Conditional use permit, minor use permit and director’s review: Expiration, modification, revocation.

A. A conditional use permit, minor use permit, director’s review for an alcoholic beverage establishment shall lapse if the use is discontinued for 90 consecutive days, or if the establishment's alcoholic beverage control license has been revoked or transferred to another location.

B. A conditional use permit, minor use permit, or director’s review is subject to modification at any time if the appropriate approving authority makes a determination that changed circumstances or unanticipated effects concerning the operation of the business establishment necessitate that conditions be added, amended or deleted.

17.42.110, or otherwise in a manner that constitutes a public nuisance and/or a threat to public health, safety and welfare. The appropriate approving authority shall set a public hearing to consider such revocation of said permit in accordance with the applicable provisions of this Code. A decision of approving authority pursuant to this section shall be appealable to the city council in accordance with Chapter 17.36.

1. An administrative citation issued pursuant to Section 17.42.160 that has been deemed final and binding may be used as prima facie evidence of unlawful public nuisance activities and/or conditions in any subsequent revocation proceeding.

17.42.130 Deemed approved status: Expiration, revocation.

A. The "deemed approved" status of an alcoholic beverage establishment shall expire if the use is discontinued for 90 consecutive days.

B. The "deemed approved" status of an alcoholic beverage establishment is subject to revocation if the operator has used or maintained, or permitted the use or maintenance of, the premises on which the establishment is located and/or has operated or permitted the operation of the business in violation of the performance standards set forth in Section

17.42.110 or otherwise in a manner that constitutes a public nuisance and/or a threat to public health, safety and welfare. The approving authority shall set a public hearing to consider such revocation of said deemed approved status in accordance with the applicable provisions of this Code. A decision of the approving authority decision pursuant to this section shall be appealable to the city council in accordance with Chapter 17.36.

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determination that a permit shall be granted, said alcoholic beverage establishment shall be subject to the conditions of approval

17.42.150 Violation, penalty, remedies.

A. Violations of this chapter shall constitute a misdemeanor and shall be punishable in the manner provided in Section 1.12.020A.

B. In addition to or in lieu of prosecution in a criminal action, the city attorney may initiate civil proceedings for the abatement, removal and enjoinment of any public nuisance as set forth in this chapter, in any manner provided by law, and shall take such other steps, and shall apply to such other court or courts as may have jurisdiction to grant such relief as will abate or remove such alcoholic beverage establishments, and restrain and enjoin any person from using property contrary to the provisions of this chapter.

C. In addition to or in lieu of any administrative, civil or criminal remedies set forth in this chapter, the administrative citation provisions of Section 17.42.160 may be utilized to abate or cause the abatement of uses, conditions and/or activities that constitute a nuisance pursuant to Section 17.42.110.

D. The remedies provided by this chapter are cumulative and in addition to any other remedies available at law or in equity.

17.42.160 Administrative citations.

A. Any enforcing officer may issue an administrative citation to a responsible person when the officer has determined, through personal observation or after undertaking standard law enforcement investigatory actions, that the person has used or maintained, or permitted the use or maintenance or property on which an alcoholic beverage establishment is located, and/or who has operation or permitted the operation of the business, in a manner that constitutes a public nuisance pursuant to Section 17.42.110. An officer shall not issue an administrative citation to a responsible person when the officer has determined, based on the totality of the circumstances, that said person has taken all reasonable steps to attempt to prevent the nuisance.

1. A responsible person who is present at the property at the time an officer determines the existence of a public nuisance shall be deemed to have actual or constructive knowledge of such nuisance.

2. An owner of the property on which the alcoholic beverage establishment is located, who is not also an operator of the business, may be deemed by an enforcing officer to have actual or constructive knowledge of the nuisance use, condition or activity:
a. If such person has previously been given verbal warning and/or an administrative citation or other written notice concerning the violations; or b. Based on the totality of the circumstances as determined by the enforcing officer.

B. Within 5 days after issuance of a citation, an officer shall submit a copy of the citation and a written statement of facts to the city manager. Alternatively, the officer may elect to submit the written statement of facts to the city manager, who may then issue the citation.

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C. An administrative citation may be personally given to the responsible person, or the responsible person may be served by first class mail to an address which is either:
a. Indicated on any form of identification presented to the officer, or b. Discovered by the officer during the course of his or her standard law enforcement investigatory actions.

The date a citation is placed in a U.S. Postal Service mail receptacle shall be the date of service.

A declaration of service shall be made by the person mailing the administrative citation showing the date and manner of service by mail and reciting the name and address of the citation addressee. Failure of any responsible person to receive an administrative citation by mail shall not invalidate any citation issued pursuant to this chapter.

D. The citation shall be in a city-approved format, and shall include the following information:

1. The date, location and approximate time of the condition and/or activity that constituted a public nuisance pursuant to Section 17.42.110;

2. A brief description of the condition and/or activity that constituted a public nuisance;

3. A statement describing the right to appeal the citation;

4. A statement advising that the fine shall be paid to the city within 30 days from the date of the administrative citation, procedure for payment, and the consequences of failure to pay.

E. The penalty amounts of administrative citations issued pursuant to this chapter shall be as follows:

1. For the first administrative citation, the penalty shall be $500.00;

2. For the second and any subsequent administrative citation, the penalty shall be $1,000.00.

F. The failure of any person to pay a penalty assessed by administrative citation within the time specified on the citation constitutes a debt to the city, which may be collected in accordance with Chapter 1.16 or in any other manner allowable by law.

17.42.170 Initial review of administrative citation or ability to pay.

A. Request for initial review of administrative citation.

1. A person who has been issued an administrative citation pursuant to this chapter may request an initial review of the citation by the city. The request shall be made in writing and shall state the reason(s) that the citation should be dismissed. The requestor shall include a copy of all pertinent evidence. The request must include a mailing address and, if available, an email address to which correspondence related to the request may be sent. The written request for an initial review must be received by the city clerk's office within fourteen (14) calendar days from the date of the citation's issuance. No fee shall be required for filing the request for an initial review. Failure of the city clerk to receive a timely request for an initial review constitutes a waiver of the right to contest the administrative citation; in this event, the citation is final and binding, and

Page 11 of 13 ends

payment shall be due within thirty (30) calendar days from the date of the citation's issuance.

2. Upon timely receipt of a written request for an initial review of the administrative citation, the public services director, development services director, or person designated by either director to act as reviewing officer, shall conduct an initial review of the administrative citation, the written incident report or statement of facts, and the request for review and all evidence submitted with the request. The reviewing officer shall assess whether the evidence shows that the violation occurred and if any extenuating circumstances exist that warrant dismissal, and shall make a decision to preliminarily uphold or dismiss the citation. The reviewing officer shall notify the cited person of the decision in writing by mail and/or email within ninety (90) calendar days from the date of receipt of the request for initial review; provided, however, that the public safety director or development services director may extend the ninety (90) day deadline upon a finding of good cause.

B. Initial review of ability to pay.

1. A cited person, regardless of whether he/she wishes to challenge the citation who believes he/she is unable to pay, may request an initial review of the person's ability to pay. In addition to the written request for review based on ability to pay, a statement of financial worth shall be submitted. The request must include a mailing address and, if available, an email address to which correspondence related to the request may be sent.

The written request for an initial review must be received by the city clerk's office within fourteen (14) calendar days from the date of the citation's issuance. No fee shall be required for filing the request for an initial review. Failure of the city clerk to receive a timely request for an initial review constitutes a waiver of the right to challenge the ability to pay. In this event, the citation is final and binding, and payment shall be due within thirty (30) calendar days from the date of the citation's issuance; provided, however, that if the cited person timely filed a request for review of the administrative citation, the payment of the citation will be due in accordance with the outcome of that initial review and any subsequent proceedings.

2. The statement of financial worth form shall include information relating to the cited person's employer, real and tangible personal property, monthly income including federal and/or state benefits, and all monthly financial obligations. The cited person shall certify the content of the statement as to its truth and correctness under penalty of perjury. The cited person shall also sign a release form of that person's most recent federal income tax report.

3. The reviewer, in conference with the director, shall make a determination of whether or not the cited person has the ability to pay the full deposit to appeal an administrative citation based on the information provided in the statement of financial worth, and shall notify the cited person in writing by mail and/or email within ninety (90) calendar days from the date of receipt of the request for initial review; provided, however, that the public safety director or development services director may extend the ninety (90) day deadline upon a finding of good cause.

4. A person who requested an initial review solely on the basis of ability to pay, for whom the determination has been made that the person has the financial ability to pay

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the full amount of the citation in one (1) payment, shall submit payment of the full amount of the citation within thirty (30) calendar days from the date of the notice of determination of ability to pay.

5. A person for whom the determination has been made that the person does not have the ability to pay the full amount of the citation in one (1) payment, shall, no later than fourteen (14) calendar days from the date of the determination, coordinate with the department to establish a payment plan whereby the cited person shall make timely monthly payments until the citation has been paid in full.

17.42.180 Administrative hearing.

A. A person whose initial review of an administrative citation has resulted in the citation being upheld pursuant to this chapter may contest the citation by filing a written appeal on a cityapproved form to the city clerk within fourteen (14) calendar days from the date of the issuance of the written statement of the results of the initial review. The basis for the appeal must be specified in detail on the appeal form. The appeal form must include a mailing address and, if available, an email address to which correspondence related to the request may be sent. Failure of the city clerk to receive a timely appeal constitutes a waiver of the right to contest a citation; in this event, the citation is final and binding.

B. A deposit in the amount of the citation must be paid at the time the appeal is filed. A person for whom a determination has been made that the person is unable to pay the full amount of the citation in one (1) payment as set forth in section 17.42.170 B.(5) of this chapter shall tender the first payment of the payment plan established pursuant to that subsection.

C. As soon as practicable after a timely appeal is filed, the city manager or his/her designee shall fix a date, time and place for a hearing. The hearing shall be conducted by an independent and impartial hearing officer. Written notice of the time and place for the hearing shall be served by first class mail and/or email at least ten (10) calendar days prior to the date of the hearing.

D. An appellant may request, in writing, that the director reschedule the hearing if the request is made at least twenty-four (24) hours prior to the hearing. The director shall grant one (1) continuance of the hearing date.

E. Failure of an appellant to appear at the scheduled hearing shall constitute the appellant's waiver of the right to appeal and a forfeiture of the citation amount deposited at the time the appeal was filed.

F. Appeal hearings are informal, and formal rules of evidence and discovery do not apply. The city bears the burden of proof to establish, by a preponderance of evidence, that the appellant committed the offense that was the basis for the citation. The officer issuing the administrative citation and/or submitting the written incident report or statement of facts shall not be required to appear at the hearing. The hearing officer shall accept testimony by declaration under penalty of perjury relating to the commission of the offense, as set forth in the issuing officer's incident report or statement of facts, and shall consider any other relevant evidence concerning the commission of the offense that the public safety director or development services director or his/her designee may present at the hearing. The hearing officer shall also take the testimony of the appellant, and/or his or her witnesses, will

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consider any other credible relevant rebuttal evidence the appellant may wish to present.

The appellant may represent himself or herself or be represented by anyone of his or her choice, including counsel, at his or her sole expense. The appellant may bring an interpreter to the hearing at his or her sole expense.

G. The hearing officer shall make findings based on the record of the hearing, and shall prepare a written decision, based on those findings, to uphold or dismiss the citation. A hearing officer may uphold the citation but modify the penalty amount if extenuating circumstances warrant a modification in the interest of justice. A copy of the written decision shall be served on the appellant by first class mail within fourteen (14) days after the hearing. If the citation is dismissed, the city shall refund the amount of the citation deposit to the appellant within thirty (30) days from the date of the decision.

H. The decision of the hearing officer is final and conclusive, subject only to review by the superior court in accordance with the time limits set forth in Code of Civil Procedure Section 1094.6.

17.42.190 Community service in lieu of payment of penalty.

A. As an alternative to paying the amount of the administrative citation, a cited person may elect to enroll in and perform community service. The amount of the citation shall be reduced for each hour of community service at a rate in accordance with the state's minimum wage in effect at the time the community service is performed.

B. In the event a person who has enrolled in community service fails or refuses to perform the community service in a timely and appropriate manner, as provided in any applicable rules, regulations, policies and procedures, the city may cancel the community service agreement and collect any unpaid balance of the administrative citation in any manner authorized by law.

17.42.200 Severability.

If any section, subsection, paragraph, sentence, clause or phrase of this chapter is declared by a court of competent jurisdiction to be unconstitutional or otherwise invalid, such decision shall not affect the validity of the remaining portions of this chapter. The city council declares that it would have adopted this chapter, and each section, subsection, sentence, clause, phrase or portion thereof, irrespective of the fact that any one (1) or more sections, subsections, phrases, or portions be declared invalid or unconstitutional.

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ATTACHMENT “A” (REDLINES)
Amendment to Title 17 (Zoning) of the Lancaster Municipal Code Relating to Alcoholic Beverage Establishments

MIXED-USE ZONE

17.10.050 Uses and permit requirements.

A. Ratio of uses.

3. Single-family structures shall not face arterial streets.

B. Uses and permit requirements.

Mixed Use - Uses Matrix

USES MU-N MU-C MU-E
P = permitted use/D = director's review/C = conditional use N/A = not allowed
Retail/Service:

Retail store P P P
Convenience market/Grocery store/mini mart/neighborhood market*
P P P
Grocery store/Supermarket/Drugstore* P P P
Personal services P P P
Tattoo/body piercing N/A D D
Pawn shops N/A D D
Restaurants/café/bakery/deli* P P P
Bar/nightclub/dance club* N/A C C
Art gallery P P P
Bank/credit union P P P
Entertainment (theater, live music, karaoke, comedy,
etc.)*etc.) *
D D D
Health and fitness services D D D
Automotive sales and services N/A C C

Page 2 of 3 ends

Automotive repair N/A D P
Gas station* D D P
Car wash C C C
Nightclub without alcohol [C] [C] [C]
Office/Professional:

Professional office P P P
Medical/dental office P P P
Light industrial uses N/A N/A P
Lodging:

Hotel/motel* C P D
Bed and breakfast* D P D
Conference/meeting room space D P D
Public/Semi-Public:

Government office P P P
Day care center P P P
Church/religious institution C P D
Post office P P P
Private school, trade and vocational schools C P P
Recreation/museum/cultural D P P
Residential:

Page 3 of 3 ends

Prohibited uses:

Outdoor storage on private property
Manufacturing/heavy industrial
Adult only/sexually-oriented businesses
Check cashing/payday loans/bail bonds
Mini-storage
*Alcohol uses are subject to Chapter 17.42require a CUP 1 Subject to the provisions of Chapter 9.46.

Page 1 of 8 ends

ATTACHMENT “A” (REDLINES)
Amendment to Title 17 (Zoning) of the Lancaster Municipal Code Relating to Alcoholic Beverage Establishments

COMMERCIAL ZONE

17.12.040 Permitted uses.

A. Existing Residential Uses. This category may continue to be used as a permitted use.

Expansion of existing residential uses shall be limited to a cumulative total of no more than 500 square feet of floor area.

This category does not include any use which could be construed as a privately owned business.

Page 2 of 8 ends

network services, telephone repeater stations, and tourist information centers. Ground or roof mounted satellite antennae shall be screened from view.

This category does not include radio and television transmission towers or wireless telecommunication facilities. (See Section 17.40.640.)
E. Eating and Drinking Establishments. This category includes but is not limited to restaurants, cafes, delicatessens, fast food operations, ice cream shops, and take-out food operations; any of which may include outdoor dining. Bars, bona fide restaurants, nightclubs, and other similar uses which meet the definition of an incidental or primary on-sale liquor establishment (as defined in Section 17.42.020) shall be required to obtain a conditional use permit.

F. Financial Institutions and Services. This category includes but is not limited to banks, credit unions, finance companies, savings and loans, and similar uses.

This category does not include pawnshops, establishments which conduct check cashing services for a fee or donation, or establishments which do not loan money as part of their business operations.

This category does not include bail bond services.

H. Public Safety Facilities and Services. This category includes but is not limited to ambulance services, fire stations, highway patrol stations, police stations, and similar uses.

I. Public Utilities. This category is limited to the following uses:

1. Publicly owned uses necessary to the maintenance of the public health, safety, convenience and welfare;

17.12.120).

J. Recycling Facilities. This category is limited to reverse vending machines and is subject to the criteria and standards of Section 17.40.300.

K. Rental Establishments. This category includes but is not limited to auto, clothing, equipment, furniture, hospital equipment, mini-storage, recreational vehicles, and similar rental uses.

This category does not include the rental of heavy equipment.

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This category does not include the repair of automobiles or heavy equipment.

M. Retail Sales Establishments. This category includes but is not limited to bona fide antique stores, apparel stores, appliance stores, bookstores (including used books), convenience market stores (without alcohol sales), craft stores, computer stores, department stores, grocery store/supermarket/drugstores or food stores (without alcohol sales), gift shops, hardware stores, jewelry stores, telephone stores, discounted and wholesale/warehouse type stores, and similar retail sales operations.

This category does not include adult-oriented businesses, an incidental or primary offsale liquor establishment as defined in Section 17.42.020, mini-marts, pawnshops, secondhand stores (does not include bona fide antique stores), surplus stores, and establishments engaged in the sale of heavy equipment, or establishments engaged in the sale of any item otherwise prohibited by law.

N. Schools—Business and Professional. This category includes but is not limited to art, barber, beauty, dance, music, real estate, and similar schools.

This category does not include services which are industrial in nature such as pest control, industrial gases and chemicals, and similar services.

17.12.070 Uses subject to director's review and approval.

A. A. Access to property lawfully used for a purpose not permitted in the C zone provided no other practical access to such property is available and such access will not alter the character of the premises in respect to permitted uses in the C zone; B. Alcohol Beverage Establishments. This category is limited to the following uses below and shall be subject to the provisions in Chapter 17.42:
a. Alcohol Production with a minimum 25% and maximum up to 40% retail. A full menu shall be available at all times that alcoholic beverages are offered;

Page 4 of 8 ends

b. Bona Fide Restaurant;
c. Convenience Market/Neighborhood Market (Beer and Wine only) with a Minor Use Permit subject to Section 17.42.060; and
a.d.Grocery Store/Supermarket/Drugstore.

CB. Body piercing establishments;
DC. Carnivals, subject to the provisions of Chapter 9.46; ED. Christmas Trees and Wreaths. This use is limited to the seasonal sale of such items, between November 1st and December 25th, both dates inclusive, to the extent permitted by other statutory and ordinance provisions. Any structures, facilities and materials used in connection with the sale of Christmas trees and wreaths shall be removed from the premises by December 31st of the same calendar year, and the property restored to a clean condition;
FE. Consignment store;
GF. Crops, field, tree, bush, berry and row, including nursery stock, flowers and vines, provided that no sludge or biosolid material shall be applied to any land as a soil amendment, roadside stands, retail sale of crops grown on the premises, and signs advertising products produced on the premises;
HG. Day care center;
IH. Health and Fitness Services. This category includes but is not limited to exercise/aerobic centers, figure salons, gymnasiums, health and fitness centers, health spas, martial arts schools, and similar uses;
JI. Outdoor Sales and Promotional Activities. Outdoor sales and promotional activities in private parking lots, on private pedestrian ways, and on public sidewalks, incidental to a use conducted primarily within a building located on the premises as follows:

3. Sidewalk sales may be allowed where:

Page 5 of 8 ends

a. Placement of the activity allows for a clear aisle of not less than 5 feet in width, and
b. Such sales are scheduled between January 15th and November 15th and shall not exceed a total of 12 days in any calendar year, and c. Insurance has been obtained by type and in an amount specified by the city attorney, and
d. An encroachment permit has been obtained from the department of building and engineering services;
KJ. Reserved;
LK. Pawnshops;
ML. Pumpkins and Other Seasonal Agricultural Products. This use is limited to the sale of such items from October 1st through Thanksgiving Day, to the extent permitted by other statutory and ordinance provisions. Any structures, facilities and materials used for the sale of pumpkins and other seasonal agricultural products shall be removed from the premises not later than 7 days following the closure of the sales operation. No other outdoor sales shall be permitted until property has been restored to a clean condition;
NM.Recycling Facilities. The following recycling facilities may be allowed:

1. Small Collection Facility. Subject to the criteria and standards of Section

17.40.310,

2. Large Collection Facility. Subject to the criteria and standards of Section

17.40.320;
ON. Residential Uses. This category is limited to the following uses:

1. Congregate living health facility,

2. Mobilehome or other residence for use by caretaker and his immediate family in accordance with Article VIII of Chapter 17.40,

3. Residential care facility for the elderly,

4. Rooming and boarding houses,

5. State authorized, certified or licensed family care home, foster home or group home serving 6 or fewer mentally disordered or otherwise handicapped persons or dependent and neglected children, if such homes provide care on a 24 hour a day basis. (Required by Section 5116 of the Welfare and Institutions Code); OP. Secondhand stores;
QP. Shopping centers and other commercial centers of more than 2 net acres but no greater than 10 net acres. (See definition in Section 17.04.240.) This category may include many of the categories listed for this zone;
RQ. Storage containers for goods and merchandise during the holidays or for special events.

Placement shall be within loading areas or utilize nonessential parking areas behind the buildings so as not to restrict the use of heavily used parking areas during such

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holidays or special events. The use of such containers shall not exceed 3 months in any calendar year;
SR. Surplus stores;
TS. Tattoo parlors;
UT. Minor, Co-located and Stealth Wireless Telecommunication Facilities. This category includes all minor wireless telecommunication facilities, as defined by this chapter, subject to Section 17.40.640 and the height limits of the C zone. Co-located telecommunication facilities within 100 feet of property with a residential zoning designation may be constructed over the required 35 foot height limit subject to review by the director of community development. Stealth telecommunications facilities located more than 100 feet from residentially zoned property may be constructed over the 50 foot height limit, subject to review by the director of community development.

See Section 17.40.640 for submittal requirements and design standards; U. Wine-tasting establishment, including dining and sales associated with such operation, operated under a Type 02 liquor license issued by California State Department of Alcoholic Beverage Control ("State ABC"). In approving such use, the director may impose conditions of operation as provided in Chapter 17.42, except that distance separation requirements shall not be mandatory;
V. Temporary alcohol sales, subject to the requirements of Section 17.42.140.

VW. Small wind energy systems (co-located), subject to the requirements of section

17.40.690.

17.12.080 Uses subject to conditional use permits.

A. Those uses identified in Section 17.12.040, Permitted uses, as requiring a conditional use permit. This category includes but is not limited to automobile repair and tire sales.

B. Activity node (development of) subject to the requirements of Section 17.08.365.

D. General Uses. This category includes only the following uses:

1. Automobile body shop;

2. Automobile upholstery shop;

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3. Alcohol beverage sales establishments. This category is limited to the following uses below and shall be subject to the provisions in Chapter 17.42 as defined in and subject to the requirements of Section 17.42.020, including:
a. BarIncidental off-site alcohol sales establishment,
b. Incidental on-site alcohol sales establishment,
c. Primary off-site alcohol sales establishment,
d. Primary on-site alcohol sales establishment,
e. Bona fide restaurant, Convenience Market/Neighborhood Market (Beer, Wine and Spirits)
cf. Liquor store,
g. Mini-mart with alcohol sales;
dh. Nightclub with alcohol sales;

4. Butane and propane service stations;

5. Car wash;

6. Dry cleaning plant—Wholesale;

7. Earth stations;

8. Fortunetelling;

9. Heliports or helistops;

10. Laundry plants—Wholesale;

11. Mini-marts and Nightclub without alcohol;

12. Model studio;

13. Radio or television transmission towers;

14. Revivals or tent meetings, of more than 7 days' duration;

15. Textile products manufactured from previously prepared materials.

E. Long-Term Health Care Facility.

1. Intermediate care facility;

2. Intermediate care facility/developmentally disabled;

3. Intermediate care facility/developmentally disabled—Habilitation;

4. Intermediate care facility/developmentally disabled—Nursing;

5. Nursing facility;

6. Skilled nursing facility.

F. Public Utilities. This category includes only the following uses:

1. Electric transmission substations and generating plants including microwave facilities used in conjunction therewith;

Page 8 of 8 ends

2. Gas distribution depots;

3. Publicly owned uses necessary to the maintenance of the public health, convenience or general welfare;

4. Public utility service yards.

G. Residential Uses. This category includes only the following uses:

1. Multiple-family project, as a separate development in the C zone (subject to the provisions of the HDR-1 zone except where specifically modified by the conditional use permit);

3. Transitional homeless shelters.

H. Shopping Centers and Other Commercial Centers of Greater Than 10 Net Acres. This category may include many of the categories listed for this zone.

I. Transient Residential. This category is limited to only the following uses:

1. Hotels;
a. Alcohol sales in conjunction and incidental to the hotel shall be subject to a director’s review and subject to Section 17.42.

2. Motels;

3. Recreational trailer parks in accordance with Section 17.40.540;

4. Travel trailer parks in accordance with Section 17.40.550.

J. Structures over 50 feet or 3 stories in height.

K. Major Wireless Telecommunication Facilities. This category includes all major wireless telecommunication facilities subject to the requirements of Section 17.40.640.

Co-located and stealth communication facilities are subject to director's review.

Page 1 of 8 ends

ATTACHMENT “A” (REDLINES)
Amendment to Title 17 (Zoning) of the Lancaster Municipal Code Relating to Alcoholic Beverage Establishments

INDUSTRIAL ZONE

17.16.040 Permitted uses—I zones.

B. Commercial Uses.

2. Existing Conforming and New Commercial Uses. Such uses shall include, but not be limited to permitted uses within the Commercial zone under Section 17.12.040, unless specifically addressed within the I zones. Uses which meet the definition of an alcohol sales establishment as contained in Section 17.42.020 shall be required to obtain a conditional use permit.

This category does not include automobile impound yards (See Section 17.16.060), automobile wrecking yards, or salvage operations, (See subsection E of this section.)

Page 2 of 8 ends

E. Automobile Dismantling Yards, Scrap Metal Processing Yards, and Similar Metal Salvage Operations. This category includes but is not limited to automobile impound yards, automobile wrecking, metal salvage operations, and junk and salvage operations. All uses in this category shall be permitted only in the HI zone. Any such use in this category on lots within 300 feet of residentially zoned property shall be conducted within an enclosed building and required to mitigate any conditions which are detrimental, or potentially detrimental, to the reasonable use of the residentially zoned property to the satisfaction of the Director. (See subsection A.10. or 15. of Section 17.16.220, as applicable.) This category does not include recycling facilities as defined in this title or the smelting of metals. (See Section 17.16.070.)
F. Building Trades and Related Uses. This category includes, but is not limited to appliance sales, blueprint services, building supplies, cabinet making, carpenter shop, contractor equipment yard, electricians and electrical supply, engineers and surveyors, fence contractors, glass stores, janitorial service and supply, landscape materials (including nurseries), lumber yards, pool contractors, plumbing sales, spa sales, truss manufacturing, wood stove sales and similar uses. Batch plants and concrete transit mix uses shall be permitted only in the HI zone provided that batch plants and concrete transit mix uses within 300 feet of residentially zoned property shall be required to mitigate any conditions which are detrimental, or potentially detrimental, to the reasonable use of the residentially zoned property to the satisfaction of the Director. (See Section 17.16.220.A.10. and Section

This category does not include radio and television transmission towers or wireless telecommunication facilities. (See Section 17.40.640).

Page 3 of 8 ends

materials, welding, wood products, wool and woolen products, wrought iron and similar manufacturing uses. All such uses within the LI zone shall be conducted within an enclosed building. Any such use in this category on lots within 300 feet of residentially zoned property shall be required to mitigate any conditions which are detrimental, or potentially detrimental, to the reasonable use of the residentially zoned property to the satisfaction of the Director. (See Section 17.16.220A.10. and Section 17.16.220.B) This category does not include cement manufacturing, explosives, foundries, paper manufacturing, manufacturing of plastics, or tanning of animal hides. (See Section

K. Public Services and Utilities. This category includes but is not limited to the following uses:

1. Electric transmission substations including microwave facilities used in conjunction therewith;

2. Gas Distribution Depots. This use is permitted in the HI zone only;

4. Public utility service yards;

5. Water reservoirs, dams, treatment plants, gauging stations, pumping stations, tanks, wells, and any use normal and appurtenant to the storage and distribution of water.

Exception: This use is not subject to site plan review (Section 17.16.120).

O. Research and Development. This category includes but is not limited to laboratories and facilities for scientific research, development and testing including administrative offices.

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This category does not include business and professional schools see Section 17.16.060 Q. Sexually Oriented Businesses. This category includes but is not limited to adult bookstores, adult motels, adult motion picture theaters, adult theaters, adult cabarets, escort agencies, massage parlors, semi-nude model studios, and similar uses subject to the requirements of Ordinance No. 619 and is permitted only in the HI zone. (See Article IV of Chapter 17.16.) R. Warehousing, Wholesaling and Storage. This category includes but is not limited to cold storage distributors, ministorage warehouse, moving van and storage, truck terminals, and warehouses. (See Section 17.16.220.A.10.)
S. Water reservoirs, dams, treatment plants, gauging stations, pumping stations, tanks, wells, and any use normal and appurtenant to the storage and distribution of water. Exception:

17.16.060 Uses subject to director's review and approval.

A. Uses subject to Director's Review in all I zones:

1. Auctions and swap meets,

32. Boarding kennels,

43. Carnivals, subject to the provisions of Chapter 9.46,

54. Schools—Business and Professional. This category includes but is not limited to art, barber, dance, music, real estate, and similar schools.

65. Christmas trees and wreaths, the sale of, between November 1st and December 25th, both dates inclusive, to the extent permitted by other statutory and ordinance provisions. Any structures, facilities and materials used for the sale of trees and wreaths shall be removed from the premises by December 31st of the same calendar year, and the property restored to a clean condition,

Page 5 of 8 ends

76. Crops, field, tree, bush, berry and row, including nursery stock, flowers and vines, provided that no sludge or biosolid material shall be applied to any land as a soil amendment. Roadside stands, retail sale of crops grown on the premises, and signs advertising products produced on the premises,

87. Day nursery, children,

98. Dwelling units, as follows:
a. One dwelling unit within a building on the same lot or parcel of land which is legally being used so as to require the continuous supervision of a caretaker and his immediate family, or
b. Dwelling units within a building or premises used for agricultural purposes, which dwelling units are occupied only by persons employed on the same premises, and their immediate families, or
c. Where subsection A.7.a. of this section permits the use of a dwelling unit for a caretaker, a mobilehome containing one dwelling unit may be used in lieu of such dwelling unit for a period not to exceed 6 consecutive months in any 12 month period. Or, if intended for a residence for up to the maximum limit of 5 years, the mobilehome shall comply with the provisions of Section 17.08.370.C for foundation systems,
109. Parking. Joint usage or leased (see Section 17.16.210.B), 110. Wild Animals. Wild animals may be temporarily used, kept or maintained for a period not to exceed:
a. Ten days in conjunction with the lawful operation of a circus or animal exhibition, or
b. Sixty days where used in motion picture and television production, except that the Director may, where he finds that such extension is consistent with the intent of this section and neither detrimental to the public welfare or to the property of other persons located in the vicinity thereof, extend such time period for not to exceed 30 additional days, and
c. Provided said animals are used, kept, or maintained pursuant to and in compliance with, all regulations of the city of Lancaster and the Los Angeles County department of animal control,
112. Minor co-located and stealth wireless telecommunication facilities subject to the requirements of Section 17.60.640,
132. Solar electrical generating plants only, in the HI zone. (Note: All other electrical generating plants require a conditional use permit in the HI zone; see Section

17.16.070C.1);
134. Small wind energy systems (co-located), subject to the requirements of section

17.40.690;
145. Emergency shelters, only in the LI zone.

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156. Entertainment and Recreation. This category includes, but is not limited to bowling alleys, golf driving ranges, shooting ranges, video game arcades, and similar uses. This shall not include dance halls, pool halls and night clubs (see section 17.16.070.A.5) B. Uses subject to Director's Review only in the HI zone:

1. Crushing of used asphalt or concrete, rock, or other materials for use as an aggregate.

2. Major wireless telecommunication facilities located more than 1,000 feet from residentially zoned property, subject to the requirements of Section 17.40.640.

Facilities located within 1,000 feet of residentially zoned property shall be subject to a conditional use permit (see Section 17.16.070.A.4).

17.16.070 Uses subject to conditional use permits.

17.16, and while such permit is in full force and effect in conformity with conditions of such permit for:

A. Uses subject to permits in all I zones:

1. Alcohol sales establishments as defined in and subject to the requirements of Section

17.42.020, including:
a. Incidental off-site alcohol sales establishment,
b. Incidental on-site alcohol sales establishment,
c. Primary off-site alcohol sales establishment,
d. Primary on-site alcohol sales establishment,
e. Bona fide restaurant,
f. Liquor store,
g. Mini-mart with alcohol sales,
h. Nightclub with alcohol sales,
i. Temporary Alcohol Sales;
j. Wine-tasting establishment, beverage establishments. This category is limited to the following uses below and shall be subject to the provisions in Chapter 17.42:
a. Bar,
b. Convenience Market/Neighborhood Market (Beer, Wine and Spirits) c. Liquor store,

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d. Nightclub with alcohol sales;

2. Radio and television transmission towers,

This category does not include the development and testing of biological or chemical warfare agents or explosives;

5. Mini-marts, Pool Halls, Dance Halls, and Nightclubs without alcohol.

6. Churches
B. Uses subject to permits in the HI zone:

1. Electrical generating plants, all types except solar (see Section 17.16.060A.13),

3. Waste Disposal. This category is limited to waste disposal facilities as defined in Section 17.04.240;
C. Uses subject to permits only in the HI zone:

This category does not include the manufacturing of food,

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4. Hazardous Waste Facility. This category is subject to the provisions of Article VII of Chapter 17.40,

5. Manufacturing—General. This category is limited to the following: explosives, smelting and casting of metals, paper manufacturing, plastic manufacturing or tanning of animal hides,

6. Pest control;
D. Uses subject permits to the LI and HI zones: College or university campuses.

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ATTACHMENT “A” (REDLINES)
Amendment to Title 17 (Zoning) of the Lancaster Municipal Code Relating to Alcoholic Beverage Establishments
Chapter 17.42 ALCOHOLIC BEVERAGE ESTABLISHMENTS

17.42.010 Purpose and intent.

17.42.020 Definitions.

For the purpose of this chapter, the following words or terms shall be defined as follows:
"Alcoholic beverage" means a fermented or distilled beverage including alcohol, spirits, liquor, wine, beer and every liquid or solid containing alcohol, spirits, wine or beer which contains onehalf of one percent or more of alcohol by volume which is fit for beverage purposes, either alone or when diluted with other substances, and sale of which require a license from the state ABC. "Alcoholic beverage control (ABC)" means the California State Department of Alcoholic Beverage Control.
"Alcoholic beverage establishment" means any establishment involving the sale of alcoholor all of the following: a bona fide restaurant, an incidental off-sale alcoholic beverage establishment, an incidental on-sale alcoholic beverage establishment, a primary off-sale alcoholic beverage establishment, and a primary on-sale beverage establishment. “Alcohol Production” means an establishment where beer, wine and other spirits are prepared bottled, stored and sold for on- or off-site consumption. Tasting rooms or seating areas may be provided on site. Alcohol production is permitted in the commercial zones (C, CPD, MU zones) if there is a minimum of 25% and maximum up to 40% square footage of total floor area dedicated to retail and a full menu available at all times that alcoholic beverages are offered.

Alcohol production shall be permitted in the industrial zones. “Bar” includes establishments used primarily for the sale or dispensing of alcoholic beverages for on-site consumption and that are not part of a restaurant. "Bona fide restaurant" includes establishments primarily engaged in the preparation and retail of food and/or beverage for on-site consumption. A full menu shall be available at all times that alcoholic beverages are offered. means a business enterprise which is conducted, or proposed to be conducted, in compliance with the following requirements:

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1. The issuance by ABC of a Type 41 or a Type 47 license;

2. A kitchen and a dining area that constitute permanent and identifiable portions of the business premises where meals are prepared by the establishment for consumption on the premises during all hours the establishment is open for business;

3. A printed menu which is made available to patrons by a server for the purpose of ordering meals;

4. Not less than 51% of the business enterprise is derived from the sale of food and nonalcoholic beverages;

5. At least one full-time cook is engaged by the business enterprise to prepare meals for patrons on the premises during the permissible hours of operation;

6. There shall be no drinking contests or other similar activities.

Fast food restaurants, billiard or pool halls, nightclubs, and adult-oriented businesses are not considered bona fide restaurants.
"Convenience market/neighborhood market" means a retail establishment up to 5,000 square feet utilized for the sale of prepackaged food products, household items, and soft drinks. Alcohol sales shall be limited to 5% maximum square footage of the sales floor area for sale and display of alcohol. The sale of spirits shall be subject to a conditional use permit and distance requirements. Convenience markets/neighborhood markets may be in conjunction with a fueling station. any business establishment of less than 10,000 square feet not connected with a petroleum products service-station, and which is characterized by retail sales of food products and household items, and which devote a minimum of 15% of overall sales floor area to display and sale of fresh meat and produce. Convenience markets shall be prohibited from selling spirits (ABC License Type 21).
"Enforcing officer" includes any city public safety officer, city community services officer, county sheriff's deputy, and any other public officer or employee designated by the city manager to issue administrative citations in accordance with Section 17.42.160. "Entertainment" means any form of entertainment, whether live, televised audio or video taped, including, but not limited to, any type of performance for the purpose of amusing the audience, such as: dancing, singing, playing a musical instrument or acting. "Existing deemed approved alcoholic beverage establishment" means any establishment lawfully engaged in the sale of alcoholic beverages for on- or off-sale consumption which is in existence prior to the effective date of this chapter, retains the same type of alcoholic beverage license and continues to legally operate without substantial change in the mode or character of operation. "Fast food restaurant" means a restaurant whose business is primarily related to take-out food.

Customers typically order food from a menu board. A fast food restaurant may also have a drivethrough window. "Grocery store/Supermarket/Drugstore" means any retail establishment larger than 5,000 square feet primarily selling food product, household merchandise and pharmaceutical drugs. Alcohol sales shall be limited to 10% maximum square footage of the sales floor area for sale and display of alcohol. This is not in conjunction with a fueling station. business establishment selling food

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products, household merchandise, and/or drugs to the public which has a floor area of more than 10,000 square feet.
"Incidental alcoholic beverage establishments" means incidental off-sale alcoholic beverage establishments and incidental on-sale alcoholic beverage establishments. Wineries and incidental uses allowed under a Type 02 liquor license issued by state ABC shall not be considered incidental alcoholic beverage establishments.
"Incidental off-sale alcoholic beverage establishment" [means those establishments that both: (1) sell, serve or give away alcoholic beverages for consumption off the premises; and (2) utilize no more than the square footage provided in the table below for the sale and display of alcoholic beverages for consumption off the premises. This definition shall not include sales establishments operated as an incidental use to a winery under a Type 02 liquor license issued by state ABC.]
Size of Outlets Maximum square footage of sales floor area for the sale and display of alcoholic beverages
0 to 100,000 gross square feet
of total sales floor area
Up to 5% or 2,500 square feet, whichever is less
Greater than 100,000 gross
square feet of total sales floor
area
Up to 5% or 7,500 square feet, whichever is less
"Incidental on-sale alcoholic beverage establishment" means those establishments that both: (1) sell, serve or give away alcoholic beverages for consumption on the premises; and (2) utilize 10% or less of the gross floor area for the sale, display and storage of alcoholic beverages for consumption on the premises. Without limitation, this definition includes a hotel that maintains only a Type 70 alcoholic beverage license, and a hospital which maintains only a Type 63 alcoholic beverage license. For purposes of this article, a bona fide restaurant shall not be considered an incidental on-sale alcoholic beverage establishment. This definition shall not include wine tasting rooms operated as an incidental use to a winery under a Type 02 liquor license issued by the state ABC.
"Liquor store" includes any establishment which primarily sells beer, wine, and/or other spirits for off-site consumption. The display sales floor area of alcohol exceeds 5% square footage of the sales floor area. means a retail or wholesale establishment which has obtained an alcoholic beverage control license Type 21 (off-sale general) to engage in the sale or sealed or containerized alcoholic beverages wherein the sale of alcoholic beverages constitutes 51% or more of the establishment's gross financial receipts. This definition shall not include sales establishments incidental to a winery operated under a Type 02 liquor license issued by state ABC.
"Mini-mart" means a retail establishment which contains less than 10,000 square feet of gross floor area utilized in whole or in part for the sale of a variety of items including groceries, delicatessen items, staples, dairy products, pre-packaged food, soft drinks, sundry items, and/or alcoholic beverages, and may include the sale of gasoline or other petroleum products. "Minimart" is distinguished from a "convenience market" in that it does not devote at least 10% of its

Page 4 of 20 ends

overall floor area to the display and sale of fresh meat and produce. Any mini-mart that sells alcoholic beverages shall be deemed a primary alcoholic beverage establishment. "Mixed-use development" means a building or combination of buildings intentionally designed as a single development to accommodate a combination of residential and commercial uses. "Mixed-use district" means any physical location designated by the city of Lancaster general plan or zoning map as a mixed-use district.
"Nightclub" means a place of entertainment, typically open at night, usually serving food and/or alcoholic beverages, which may have a floor show and/or offer live or recorded entertainment or music and/or space for dancing.
"Operator" means any person who has an ownership interest, in any manner, in an alcoholic beverage establishment, including, without limitation, a corporation and each of its officers, directors and stockholders; a partnership and each of its partners; a limited liability company and each of its managing members.
"Owner" means and includes any person with a recorded ownership interest in, or a right of possession, control or use of the premises on which an alcoholic beverage establishment is located, including all persons shown as owners on the last equalized assessment roll of the county assessor's office. Owners include property managers and persons with powers of attorney, executors of estates, trustees, or who are court appointed administrators, conservators, guardians or receivers.
"Planning commission" means the planning commission of the city of Lancaster. "Primary off-sale alcoholic beverage establishment" means any business establishment which is making application for or which has obtained a liquor license from ABC authorizing the sale of alcoholic beverages for consumption off the premises in original, unopened containers, and which exceeds the amount of floor area devoted to alcoholic beverage sales area as defined under "incidental off-sale alcoholic beverage establishment." For the purposes of this chapter, liquor stores and mini-markets shall be deemed primary off-sale alcoholic beverage establishments.

This definition shall not include wineries and incidental uses operated under a Type 02 liquor license issued by state ABC.
"Primary on-sale alcoholic beverage establishment" means any business establishment which is making application for or which has obtained a liquor license from ABC authorizing the sale of alcoholic beverages for consumption on the premises. Such liquor licenses include, but are not limited to, Type 41 (on-sale beer and wine for bona fide public eating place), Type 42 (on-sale beer and wine for public premises), Type 47 (on-sale general for bona fide public eating place), Type 48 (on-sale general for public premises), Type 50 (on-sale general for club), Type 51 (club), and Type 52 (veteran's club). For the purposes of this chapter, bona fide restaurants, nightclubs, bars, and banquet facilities, which sell alcoholic beverages for on-site consumption, shall be deemed primary on-sale alcoholic beverages establishments. This definition shall not include wineries and incidental uses operated under a Type 02 liquor license issued by state ABC.
"Responsible person" means an operator of an alcoholic beverage establishment, an operator's on-site manager(s), an operator's employees and/or a property owner, as defined herein.

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1. The alcoholic beverage establishment has changed, or proposes to change, its type of retail liquor license with the department of alcoholic beverage control;

2. An alcoholic beverage establishment increases floor area by more than 20%;

3. An alcoholic beverage establishment changes from an "incidental off-sale" or an "incidental on-sale" establishment to a "primary off-sale" or a "primary on-sale" establishment;

34. The alcoholic beverage establishment proposes to reinstate alcohol sales after the retail liquor license has been revoked or suspended for a period greater than 90 days by the department of alcoholic beverage control; or

45. The establishment is a bona fide restaurant with a Type 41 or Type 47 license that adds entertainment, except for non-amplified solo or similar entertainment on an occasional basis, which does not occupy more than 50 square feet or substantially change the character of the restaurant operation.
"Supermarket" means any business establishment selling food products, household merchandise, and/or drugs to the public, which has a floor area of more than 10,000 square feet. "Winery" means an establishment operating under a Type 02 liquor license issued by state ABC for the production of wine. "Winery" includes incidental tasting, sales, and dining associated with the overall establishment and allowed under the Type 02 license.

17.42.030 Uses and Permit Requirements Conditional use permit required.

Type of Establishment Alcohol
Sales
Permitted Zones Permit
Required
Review
Authority
Alcohol Production Beer, Wine
and Spirits LI and HI DR
Development
Services
Director
Alcohol Production with
minimum 25% and maximum
up to 40% retail and a food
menu
Beer, Wine
and Spirits MU, C, and CPD DR
Development
Services
Director
Bar Beer, Wine
and Spirits

MU, C, CPD, LI
and HI CUP Planning Commission
Bona Fide Restaurant Beer, Wine
and Spirits

MU, C, CPD, LI
and HI DR
Development
Services
Director

Page 6 of 20 ends

Convenience Market/
Neighborhood Market
Beer and
Wine

MU, C, CPD, LI
and HI MUP
Development
Services
Director
Beer, Wine
and Spirits

MU, C, CPD, LI
and HI CUP Planning Commission
Grocery
Store/Supermarket/Drugstore
Beer, Wine
and Spirits

MU, C, CPD, LI
and HI DR
Development
Services
Director
Alcohol Sales in Conjunction
and Incidental to a Hotel
Beer, Wine
and Spirits MU, C, and CPD, DR Planning Commission
Liquor Store Beer, Wine
and Spirits

MU, C, CPD, LI
and HI CUP Planning Commission
DR: Director’s Review
CUP: Conditional Use Permit
MUP: Minor Use Permit
On or after the effective date of this chapter, no place where alcoholic beverages are sold, served, or given away as a normal course of business for on-sale or off-sale consumption, shall be established without first obtaining a conditional use permit from the city. No existing deemed approved alcoholic beverage establishment shall substantially change its mode or character of operation as such term is defined by this chapter, without first obtaining a conditional use permit.

Issuance of a conditional use permit shall be in accordance with the requirements set forth in Chapter 17.32 and the requirements of this chapter (except for wineries approved pursuant to Section 17.08.070(EE)). The planning commission shall approve, conditionally approve, or disapprove an application for a conditional use permit for alcoholic beverage establishments.

Following a public hearing at which all parties may present testimony, the planning commission shall state findings of fact, which serve as the basis of its decision, and record the decision in writing.

A copy of the conditions of approval for the conditional use permit must be kept on the premises of the establishment, and be presented to city or county sheriff's personnel upon request.
(Ord. No. 1015, § 1, 12-13-2016)

17.42.040 Conditional use permit—Distance requirements.

A. New aAlcoholic beverage establishments that require a conditional use permit shall adhere to the distance requirements as specified below:

Primary Alcoholic Beverage Establishments
Type of Establishment Distance RequirementOnSale
Religious Assembly 300'
Public/Private School (K-12) 1,000'
Day Care Center 300'

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Residential Use or Residentially Designated Property 300' Existing Primary Alcoholic Beverage Establishment 500'
Public Park 500'
Hospital 500'
Incidental Alcoholic Beverage Establishments
Type of Establishment On-Sale Off-Sale
Religious Assembly 300' -0-
Public/Private School (K-12) 500' -0-
Day Care Center 500' -0-
Residential Use or Residentially Designated Property 300' -0- Existing Primary Alcoholic Beverage Establishment 300' -0- Public Park 500' -0-
Hospital 500' -0-
B. Measurement of Distance. The distance requirement shall be measured in a straight line from the closest property line to the closest property line. C. Request for Waiver. An applicant for an alcoholic beverage establishment may request, in conjunction with the conditional use permit, a waiver of the distance requirements. In considering such request, the planning commission may approve a waiver if it makes the following findings:

1. The alcoholic beverage establishment will serve a specific community need;

17.42.050 Conditional use permit—Findings.

The approving authority shall approve an application only after the applicant substantiates required findings below. If the application requires a conditional use permit then it In order to approve a conditional use permit for an alcoholic beverage establishment, the planning commission, or city council on appeal, shall find that the proposed use is consistent with the purpose and intent of this chapter. In addition, the planning commission, or the city council on appeal, shall make the following findings as well as the findings required by Section 17.32.090. :

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17.42.060 Minor use permit Conditional use permit—Factors regarding public convenience or necessity.

A. Applicability. A minor use permit shall be filed subject to the uses and requirements table in Section 17.42.030.

B. Project Notice. A notice for a minor use permit shall be mailed ten (10) calendar days before the scheduled action to the following, unless stated otherwise in this code

1. Owner(s) and applicant;

3. Persons Requesting Notice. A person who has filed a written request for notice with the director of development services within one year prior to the action

4. The development services director may require additional notification requirements such as site posting and increased notification radius based upon the possible impacts of the project.

A.C. Reviewing Authority. The development services director is the decision maker that approves or denies an application. The development services director may refer an application to Planning Commission and/or City Council for a decision on the application.

B. D. Conditions of approval. In approving a minor use permit, the approving authority may impose such conditions as deemed necessary to ensure that the minor use permit will accordance with the findings. In deciding whether to issue the conditional use permit, the planning commission, or the city council on appeal, shall consider whether the public convenience or necessity is being served and make findings to justify such conclusion based upon review and consideration or relevant factors, which shall include, but not limited to, the following:

A. The extent to which the issuance of the conditional use permit would duplicate services and, therefore, contribute to an over-concentration of alcoholic beverage establishment; B. The extent to which alcohol sales are related to the function of the proposed use, and the possibility of the use operating in a viable manner without alcohol sales; C. The ability of the proposed establishment to serve a niche in the market not filled by other alcoholic beverage establishment in the area;
D. The convenience of purchasing alcoholic beverages in conjunction with other specialty food sales or services;
E. The aesthetic character and ambiance of the proposed establishment;

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F. The manner in which the proposed establishment is to be conducted (special or unique features), including the extent to which the establishment will provide an adequate and well trained staff;
G. The manner in which the proposed establishment complements the established or proposed businesses in a specific area;
H. The extent to which the proposed establishment, location and/or operator has a history of law enforcement problems;
I. The crime rate in the reporting district and adjacent reporting districts as compared to other areas in the city; and
J. The number of alcohol-related law enforcement calls for service, crimes or arrests in the reporting district and in adjacent districts.
(Ord. No. 1015, § 1, 12-13-2016)

17.42.070 Conditions of approval for on-sale alcoholic beverage establishments.

Establishments engaged in the retail sale of alcoholic beverages for on-premises consumption shall be operated in a manner which does not interfere with the normal use of adjacent properties. In addition to those conditions which the planning commission, or the city council on appeal, may otherwise impose, all conditional use permits for on-sale beverage establishments shall be subject to the following conditions of approval:

A. The exterior of the premises shall be kept free of litter.

B. Graffiti shall be removed from the site within 72 hours.

C. Alcoholic beverages shall not be permitted to be consumed in the parking area or other exterior areas of the premises, except for designated outdoor areas approved as part of the application.

D. Exterior lighting of the parking area shall be kept at an intensity of between one and 2 foot-candles, so as to provide adequate lighting for patrons while not disturbing surrounding residential or commercial areas. Light sources shall be screened from the adjacent properties and from the sky.

E. Adequate security measures shall be provided as specified by the planning commission including, but not limited to, retaining trained staff and security personnel and providing security devices, such as surveillance or burglar alarm systems.

F. Hours of operation, including deliveries to the proposed establishment, shall be compatible with the need and character of the surrounding neighborhood. In order to protect the public health, safety and welfare, the planning commission may limit the hours of operation.

G. All employees who serve or sell alcoholic beverages shall successfully complete a responsible beverage service training program that meets the requirements of the state ABC within 90 days of hire. Records of such training shall be maintained on the premises and made available to city or county sheriff's personnel upon request.

H. Noise levels at the property line of any sensitive use as listed in Section 17.24.040 adjoining the site of the alcoholic beverage establishment shall not exceed 65 dBA.

I. The management of any establishment selling alcohol shall take necessary steps to assure the orderly conduct of employees, patrons and visitors on the premises, and to

Page 10 of 20 ends

assure timely response to concerns of neighbors and local officials about problems related to alcohol sales and service at the establishment.

J. The owner of the establishment shall maintain all required permits and/or licenses for the sale of alcoholic beverages in good standing.

K. The establishment shall conspicuously post an interior sign stating:
"We ID everyone under 30 years of age for alcohol sales." The language of such sign shall be English, as well as the predominant language of the establishment's clientele.
(Ord. No. 1015, § 1, 12-13-2016)

17.42.080 Conditions of approval for off-sale alcoholic beverage establishments.

Establishments engaged in the retail sale of alcoholic beverages for off-premises consumption shall operate in a manner which does not interfere with the normal use of adjacent properties. In addition to those conditions which the planning commission, or the city council on appeal, may otherwise impose, all conditional use permits for off-sale alcoholic beverage establishment shall be subjected to the following mandatory conditions of approval:

A. The exterior of the premises shall be kept free of litter.

B. Graffiti shall be removed from the site within 72 hours.

C. The sale of alcoholic beverages for consumption on premises shall be prohibited and appropriate posting of signs stating that drinking on the premises is prohibited by law shall be posted both inside and outside the establishment. The premises shall include the establishment proper and/or the appurtenant common area if located in a commercial center.

G. All employees who serve or sell alcoholic beverages shall successfully complete a responsible beverage service training program that meets the requirements of the California Department of Alcohol Beverage Control within 90 days of hire. Records of such training shall be maintained on the premises and made available to the city or the county sheriff's department personnel upon request.

H. Noise levels at the property line of any sensitive use as listed in Section 17.42.040 adjoining the site of the alcoholic beverage establishment shall not exceed 65 dBA.

I. Exterior public telephones that permit incoming calls may not be located on the premises.

J. The operation of video or any other electronic games may be prohibited in conjunction with the sale of alcoholic beverages, and will be considered on a case by case basis.

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K. The planning commission may restrict alcoholic beverages sales by container size and type where such restriction is determined to be necessary for the reasonable protection of public health and safety.

L. No beer or wine shall be displayed within 5 feet of the cash register or the front door unless it is in a permanently affixed cooler.

M. No sale of alcoholic beverages shall be made from a drive-through or walk-up window.

N. No display or sale of beer or wine shall be made from an ice tub.

O. No self-illuminated or "in-motion" advertising for beer or wine shall be located on buildings or windows, or be visible from outside the building.

P. If the establishment also engages in the sale of motor vehicle fuel, no advertisement of alcoholic beverages shall be displayed at motor fuel islands. (Ord. No. 1015, § 1, 12-13-2016)

17.42.090 Exceptions—Specific plan areas.

17.42.100 Existing deemed approved establishments selling alcoholic beverages.

Any establishment lawfully existing prior to the effective date of this chapter and licensed by the state for the retail sale of alcoholic beverages for on-sale or off-sale consumption shall be considered to have a "deemed approved" status and shall only be required to obtain the necessary permitsa for a "substantial change in mode or character of operation" as described in Section

17.42.020, or for a revocation or expiration of "deemed approved" status as set forth in Section

17.42.130. The distance requirements set forth in Section 17.42.040 shall not apply to any existing deemed approved alcoholic beverage establishment.

17.42.110 Performance standards; public nuisance.

Lawful property maintenance and business operations shall include, but are not limited to, the following:

1. The premises shall be maintained without the presence of garbage, junk, trash, debris or other miscellaneous items in exterior areas except in approved trash collection containers/enclosures.

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5. The premises shall be maintained without the presence of exterior public telephones.

Any existing public telephone shall be removed within 30 calendar days from the effective date of the ordinance from which this chapter is derived.

6. The operator of the establishment shall maintain a current and valid city business license and shall conduct business in full accordance with any and all conditions imposed thereon.

7. The operator shall not sell, furnish, give or permit the sale, furnishing or giving of an alcoholic beverage to an obviously intoxicated person or to a habitual or common drunkard.

9. The operator shall not cause, allow or permit nuisance and other unlawful activities on the premises, including, but not limited to:
a. Loitering;
b. Drinking alcoholic beverages and/or possessing open alcoholic beverage containers in exterior portions of the premises, other than in a designated patio or other area approved by the department of alcoholic beverage control and/or the city in conjunction with an on-sale establishment;
c. Littering;
d. Creating excessive noise;
e. Disturbing the peace;
f. Engaging in illegal drug activity or prostitution;
g. Trafficking in stolen goods;
h. Harassing passersby or business patrons;
i. Panhandling;
j. Engaging in acts of vandalism;
k. Otherwise engaging in conduct that is unlawful and/or constitutes a nuisance.

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a. Requesting those persons engaging in conduct that constitutes a nuisance to cease that conduct, unless the operator has reasonable cause to believe such request may jeopardize his or her personal safety.
b. Calling the city's law enforcement and/or public safety personnel if the operator's attempts to abate the nuisance conduct have been unavailing or if the operator has reasonable cause to believe such attempts may jeopardize his or her personal safety.
c. Timely undertaking actions to address conditions that facilitate loitering and other nuisance activity on the premises, such as removing furniture from areas adjacent to the entry of the establishment, prohibiting persons from using any portion of the premises for the installation and/or operation of a temporary business or other use, and/or other preventive actions.

17.42.120 Conditional use permit, minor use permit and director’s review: Expiration, modification, revocation.

B. A conditional use permit, minor use permit, or director’s review is subject to modification at any time if the appropriate approving authority planning commission makes a determination that changed circumstances or unanticipated effects concerning the operation of the business establishment necessitate that conditions be added, amended or deleted. The planning commission shall set a public hearing to consider such modification of said conditional use permit in accordance with the applicable provisions of this Code. A decision of the planning commission pursuant to this section shall be appealable to the city council in accordance with Chapter 17.36. The planning commission's decision shall be final and binding if an appeal is not timely filed.

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C. A conditional use permit, minor use permit or director’s review for an alcoholic beverage establishment is subject to revocation if the operator has used or maintained, or permitted the use or maintenance of, the premises on which the establishment is located and/or has operated or permitted the operation of the business in violation of any condition imposed pursuant to the permitconditional use permit, or in violation of the performance standards set forth in Section 17.42.110, or otherwise in a manner that constitutes a public nuisance and/or a threat to public health, safety and welfare. The appropriate approving authority planning commission shall set a public hearing to consider such revocation of said conditional use permit in accordance with the applicable provisions of this Code. A decision of approving authority the planning commission pursuant to this section shall be appealable to the city council in accordance with Chapter 17.36. The planning commission's decision shall be final and binding if an appeal is not timely filed.

17.42.130 Deemed approved status: Expiration, revocation.

A. The "deemed approved" status of an alcoholic beverage establishment shall expire if the use is discontinued for 90 consecutive days.

17.42.110 or otherwise in a manner that constitutes a public nuisance and/or a threat to public health, safety and welfare. The approving authority planning commission shall set a public hearing to consider such revocation of said deemed approved status in accordance with the applicable provisions of this Code. A decision of the approving authority planning commission decision pursuant to this section shall be appealable to the city council in accordance with Chapter 17.36. The planning commission's decision shall be final and binding if an appeal is not timely filed.

C. An alcoholic beverage establishment whose "deemed approved" status has expired or been revoked shall be prohibited from engaging in the sales of alcoholic beverages without first obtaining a conditional use permit. In the event the planning commission or city council makes the determination that a conditional use permit shall be granted, said alcoholic beverage establishment shall be subject to the conditions of approval set forth in Sections

17.42.070 and 17.42.080, including, but not limited to, the establishment of minimum single sizes of alcoholic beverages.

17.42.140 Temporary alcohol sales.

Any event sponsor or applicant that anticipates a temporary event with alcohol sales shall obtain a temporary use permit. The application is to be filed with the planning department at least 60 days in advance of the event.

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Lancaster City CouncilOctober 11, 2022

Lancaster City Council
October 11, 2022