07/23/2013 carry OF .GRANDT]- ERR-ACHE '
AG*ENDA'& ST.-AFFAEPORTS' ;
FOR THE _
REGULAR MEETING OF THE CITY COUNCIL AND`THE CITY COUNCIL AS THE`SUCEESSOR-AGENCY TO THE
'COMMUNITY REDEVELOPMENT AGENCY'&THE GRAN D'TERRACE-HOUSING AUTHORITY
TUESDAY,.JUIy 23, 2013 ti
6:00 P.M.. Re plAr Meeting
COUNCIL CHAMBERS `
GRAND TERRACE CIVIC-CENTER--22795 BAR-TON ROAD GRAND.TERRACE,;CA 92313
flt , --'M' y
GRAND TE +MCI
EiCE a
Walt-Stanckiewitz; Mayor
Bernardo'Sandoval, Mayor Pro Tern ;
Darcy McNabo.e,_Councilrhemb.er
"Jackie,Mitchell;-Council'member-
Sylvia Robles, Councifinem.ber
Betsy Adarns,-City Manager
Richard 1. Adams, City,Atforney
Cynthia Fortune;;F'inance Manager
Richard Shie.l'ds;.Community D eve lopment'Director
'Tracey Martinez,.City.Clerk
The Grand-Terrace City Council,meets on the Second.and Fourth Tuesday of each month at 6:00 p:m.
CITY OF GRAND TERRACE.
- CITY COUNCIL
AGENDA • JULY 23, 2013
Council Chambers Regular Meeting 6:00 PM
Grand Terrace Civic Center• 22795 Barton Road
The.City of Grand Terrace complies with the Americans with.Disabilities Act of 1090. If you require
special assistance to participate in this meeting, please call the City Clerk's-office at (909) 824-6621 at
least 48 hours prior to the meeting.
If:you desire to address the City Council during:the meeting, please:complete a request to speak form
available at the entrance and present-it to the City Clerk. Speakers will be called upon by the Mayor at
the appropriate time.
Any-documents provided to a majority of the City.Council regarding any item on this agenda will be made
available for.public inspection in the City Clerk's office at city hall located at 22795 Barton Road during
normal. business hours. In addition, such documents: will be posted .on the City's website at
-www.cityofgrandterrace.org
CALL TO ORDER
Convene City Council and City Council as the Successor Agency to the Community 'Redevelopment
Agency : .
Invocation
Pledge of Allegiance
Roll Call
AttendesesName ;Late`. ;.Ariived=
Mayor Walt Stanckiewitz v 11~ El
Mayor Pro Tem.Bernardo.Sandoval 0 0 El:
Council'Member Darcy McNaboe :0 0 0
Council Member Jackie MitchellED
Council.Member Sylvia Robles 0
1. ITEMS TO DELETE
2. SPECIAL PRESENTATIONS
A. Updates from Legislative•Representatives(Federal, State and County)
B. Proclamation-Smart Irrigation Month-July 201.3
City of Grand Terrace Page 1 Upddted.41412013 11:29 AM
Agenda Grand Terrace City Council July 23, 2013
3. CONSENT CALENDAR
The following Consent Calendar items are expected to be routine and noncontroversial. They will be
acted upon by the Council at one time without discussion. Any Council Member, Staff Member, or Citizen
may request removal of an item from the Consent Calendar for discussion.
A. Waive Full Reading of Full Ordinances on Agenda
B. Approval of Check Register No. 07-23-2013
4. PUBLIC COMMENT
This is the opportunity for members of the public to comment on any items not appearing on the regular
agenda. Because of restrictions contained in California Law, the City Council may not discuss or act on
any item not on the agenda, but may briefly respond to statements made or ask a question for
clarification. The Mayor may also request a brief response from staff to questions raised during public
comment or may request a matter be agendized for a future meeting.
S. COUNCIL REPORTS
6. PUBLIC HEARINGS
A. Zoning Code Amendment 13-01: Proposed Amendment to the Grand Terrace Municipal Code by
Repealing and Replacing in Its Entirety Chapter 18.70 Adult Business Regulations, and Adding Chapter
5.84 Adult Business Regulatory License and Chapter 5.88 Adult Business Manager and Performer
License
7. UNFINISHED BUSINESS y
A. Adoption of Resolutions Authorizing Special Election in November 2013 for the Purpose of Considering a
Utility Users'Tax and Related Election Requirements
8. NEW BUSINESS
A. Status Report on the.Purchase and Sale Agreement and Escrow Instructions Between the City of Grand
Terrace City Council as the Successor Agency of the Community Redevelopment Agency and O'Reilly
Automotive Stores, Inc.
9. CLOSED SESSION
A. Labor Negotiations- Labor Negotiations Pursuant to Government Code 54957.6- City Labor Negotiatior-
Betsy Adams, City Manager-Negotiated with-All Unrepresented Employees
B. Conference with Legal Counsel - Anticipated Litigation - Significant Exposure to Litigation Pursuant to
Paragraph (2)of Subdivision (d)of Section 54956.9; One Potential Case
C. Conference with Legal Counsel -Anticipated Litigation - Initiation of Litigation Pursuant to Paragraph (4)
of 'Subdivision (d) of Section 54956.9: One Potential Case PTAF Claim with the County of San
Bernardino
ADJOURN
The Next Regular City Council Meeting will be held on Tuesday,August 13, 2013 at 6:00 PM.
City of Grand Terrace Page 2 Updated 41412013 11:29 AM
Agenda Grand Terrace City Council July 23, 2013
Agenda item requests must be submitted in writing to the City Clerk's office no later than 14 calendar
days preceding the meeting
City of Grand Terrace Page 3 Updated 41412013 11:29 AM
AG ENDARE PORT'
. . .
�..
MEETING DATE: July 23; 2013 Council Item
TITLE: approval of Check Register No.. 07-2340.1-3
PRESENTED BY: Cynthia Fortune, Finance Manager
RECOMMENDATION:. Approve Attached Check Registers for July 23, 2013; as
submitted.,:which includes the Check Register.Account Index
and Voucher Listings-for Fiscal Year 2012-13 and Fiscal
Year 2013-14.
BACKGROUND:
The Check :Register for July-.23, 2013 is presented in accordance with Government
Code §37202:and is hereby submitted for-the:City-CounciPs approval.
The attached index to the Check, Register jis a guideline account list only and is not
intended to replace the comprehensive chart of accounts used. by the City arid CRA
Successor Agency: Expenditure account number- formats are XX-XXX-XXX -[Fund-
Department-Account] Expenditures::may be made from trustlagency accounts (Fund
23-XXX) or temporary clearing.accounts which do not have.a.budgetary impact..
r" A. total of $34i219.:01 in accounts ,payable checks was issued during the period for
services; reimbursements; supplies and contracts and- -are detailed 'in the attached
check register.
Listed are the attached check registers:-
Title :DesCH_tion. Amount
`FY2012-13--Check Register- ;Invoices paid as of'July 23, 2013 for-the $32,262.72
0.02-. prior fiscal Year 'FY20.1.2-1.3
FY2013-14 Check'Register :Invoices paid as of July 23,-2013 for the $1,956.29
:current fiscal ear.fY2013-14
New vendors:
Check : payee Descrip#ion Amount
No..
Santa Fe Custodial Services for Child Care
69500 `BUildin Maint. .Jul ?PO-5th $300,00
Pa rrieiits:lat er than_$1;0,000:
Check payee Description Amount
No.
69490 Riverside Water Usa a for Aril-June&:Sewer $10652:81
_..'Packet Pg,4
Check payee Description Amount
No.
Highland Water Billing for June
Payroll.costs for the period ending July 5, 2013
Pay Period Ending Period Amount
Per.
14 07/05/2013 Biweekly $51,760.15
FISCAL IMPACT:
All disbursements are made in accordance with the Adopted Budget for Fiscal Year
2012-13 and Fiscal Year 2013-14.
ATTACHMENTS:
• FY 2012-13 Check Register 002
• FY 2013-14 Check Register
• Check Register Account Index
APPROVALS:
Finance Completed 07/17/2013 1:50 PM
Cynthia Fortune Completed 07/17/2013 1:51 PM
City Attorney Completed 07/18/2013 1:36 PM
City Manager Completed 07/18/2013 1:42 PM
City Council Pending
FPackefPge'5;
l-
vchlist Voucher List Page: 1
07/17/2013 •10:17:10AM CITY OF GRAND TERRACE
Bank code: bofa ^
r
Voucher Date Vendor Invoice Description/Account Amount N
69476 7/1.1/2013 0-10693 ARROWHEAD-UNITED WAY PR End WIM3 Employee Contributions-PR End.6/21/13 N
10-022-66-00 17.50 0
-Total: 17.50 .6
Z
69477 7/16/2013 011175 ROBLES,SYLVIA rMay&June MAY&,JUNE HEALTH INSURANCE REWM-ROBLES
10-110-142-000-000 906.70 u�
Total: 906.70 .�
69478 1/23/2013 011194 AMERIC_ AN FIDELITY ASSURANCE CO A994.629 June Emp Paid-Acc/Sup Life/Sup STD �
23-250-20-00 762.99
Total: 762.99
69479 7i2812013 011195 AMERICAN FIDELITY ASSURANCE CO .848593A June Emp Paid F16k'spending/Dep Care c'
23-250-10-00 878.36
Total: 818.36 N
0
69480 7/23/2013 011031 CINTAS CORPORATION#150. 150114286 REST ROOM.SUPPLIES 0
09-440-228=000-000 129.94- +°.�•
Total.: 129.94
as
6948:1 7/23/2013 01103.1 CINTAS CORPORATION.#150 150121325 REST-ROOM SUPPLIES �
09-440-228-000;_000. 129.94•
'Total: 129.94
69482 7/23/20.13 011196 FIDELITY SECURITY LIFE 5498751 June Employee Paid Vision Insurance
10-022-61=00 118.60 IN
Total: 1.18X0 N
69483 7/23/2013 002740 FRUIT GROWERS SUPPLY 91307752 MAINT SUPPLIES ILL
10-450-245-000-000 217.13
10-450-245-000-000. 2,151.83 G)
- 'Total.: 2,368.96 .c
ca
69484 7/23/2013 003210 HOME DEPOT CREDIT SERVICE 60353225002368i CITY HALL&PARKS SUPPLIES Q
10-195-245-000-000 253.41
10-450-245-000-000 242.60
09-440-228-000-000 25.77
Page: 1
vchlist Voucher-List :Page: 2
07/17/2013 16:17:10AM CITY OF'GRAND TERRACE
Bank code: bofa
Voucher Date Vendor Invoice Description/Account Amount r
� O
69484 7/23/201.3 003210, HOME DEPOT CREDIT SERVICE (Continued) Total 521.78 M
69485 7/23/2013 010773 KELLAR SWEEPING INC. 7801 JUNE STREET SWEEPING SVCS t:
16-900-254-000-000 4,200.00 C
Total: 4,200.00 Z
- L
•69486 7/23/2013 005400 OFFICE DEPOT 660271789001 Office Supplies F;
10-380-210-000-000 102.49
660271857001 Office Supplies
lz
10-380-210-000-000 3.55 �c
.660515887001 Office.Supplies d
10-140-210-000-000 85.07 V
663448102001 Office Supplies •-
10-120-210-000-000 150.26 C* _
Total: 341.37
-69487 7/23/2013 011199- PRUDENTIAL MUNICIPAL POOL 0000338643 Jun EAP,Life,AD&D, DepCare,STD<D c
10=022-66-00 837.87 �.
09-440-142-000-000 119.47 N
10-120-142-000-000 19.60-•a�
10-125-142-000=000 7.53
10-140-142-000-000 5.14 -lie
10-172-142-000-000 10.08 .m
10A 75-142-000-000` 10.78 j
1,0-185-142=000-000 12.33 cn
10-370-142-000-000 13.60 N
10:-380-142-000-000 .9.00 c
10-450-142-000-000 3.38
10-625-142-000-000 5.14 .�}i..
16-17.5-142-000.000 11.64
21-175-142-000=000 6.82 d
21-625=142-000-000 2.20 •E:
32-200-142-000-000 27•.19 v
Total: 1,101.77
69488 7/23/2013 ,011074 REDFLEX TRAFFIC SYSTEMS April April Coact Services-Redlight Fines'
17-900-2556000-000 395.10
Page: 2
Bi ia,� ;,
;3F
vchlist Voucher'List :Page: 3
07/17/2013 10:17:10AM CITY OF-GRAND TERRACE
Bank code: bofa
Voucher Date Vendor Invoice, Description/Account Amount C9
.69488 7/23/2013 011074 REDFLEXTRAFFIC-SYSTEMS (Continued) N
M
May 2013 May Contract Services-Redlight Fines N
17-900-255-000-000 573.70 0
Total: 968.80 p
Z.
69489 7/23/2013 01.1276 'RICH, HEATHER 16941 C.Care Account,Refund-H. Rich m
09-440-21 54.13 a
Total: 54:13 I
:69490 7/23/20:13 006285 RIVERSIDE HIGHLAND WATER CO 2319. June Sewer Billing Y
21-572-255-000-000 80.88
Apr/Jun Apr/Jun Water Usage&Fees V
10-100-238-000-000 697.71
10-450-238-000=000 61848.44 0.
10-805-238-000-000 1,986.70
32-600-301-000-000 11.46 iv
34-700-767-000-000 11..46 c
48-600-330-010-000 69.40
32-600-326-000-000 22.02 N
09-440-238-000-000' '243.36 '5.
26-600-239-000-000 391.60 w
26-601-239-000-000. 113.32 ..bc.
32-600-216-000=000 11.46
32-606-214-000-000 39.72 3
32-600-307-000-000 22.92
34-.700-710=000-000 11%46 N
Total: 10,56U1 c
N
69491 7/28/2613 007065 SO-CAL LOCKSMITH 28772 Locks for Parks ._
10-450-245-000-000 115.45
Total: 115.45 m
E
69492 7/23/2013 066720 SO.CA.EDISON COMPANY June June Energy Usage
Q
Page: 3
vchlist Voucher List Page: 4
07/17/2013 10:17:10AM CITY OF GRAND TERRACE
Bank code: bofa
Voucher . . Date Vendor Invoice_ Descri tion/Account Amount P o
69492 7/23/2013 006720: SO.CA.EDISON COMPANY (Continued) N -
09-440-238-000-000 1.178,135 N
10-175-238-000-000 49.59 c
10-172-238-000-000- 49.59 p
10-190-238-000-000 5,090.27'*Z
10-450-238-000-000 705.55 y
16-510-238-000-000 487.79 v
Total:: 8,1.70.14 d
69493 7/23/20.13 007034 TRANSPORTATION:ENGINEERING 1283 MAY TRAFFIC ENG SVCS .Y
10-175-250-000-000 435.00 s
Total.: 435.00 V
6.
69494 7/23/2013 01.1251 7YCO INTEGRATED SECURITY LLC 92680586 4TH QTR C.CARE SECURITY MONITORING •CO
•o
09-440-247-000-'000 375.00
Total: 375.00 N
0
.69495 7/23/20.15 001038: VERIZON WIRELESS-LA 9707031511 JUNEMULY CELL PHONE,CDD DIRECTOR' o
I-
10=175-235-000-000 103.48 J3
Total: -103.48 p�.
- m
20 Vouchers for bank code.: bofa Bank'total: '32,262.72 .Y
v
20 Vouchers in this report 'Total vouchers,: 32,262.72
• M
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0
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Page: 4
- ,� •� _'�!Packet�iP�g.19.. 1
.3'?Bb;
vchlist Voucher List Page: 1
07/17/2013 41':11:56AM CITY OF GRAND TERRACE
Bank code: bofa
Voucher . Date. Vendor, Invoice Description/Account Ainoiint o
69475 7/9/2013 006531 S:B,COUNTY SHERIFF 07092013 Fingerprint Rolling Fee-b.Laesser N.
10-190-226-000-000 15.00 .ti
Total: 15.00: c
_ O
69496 7/23/2013 002867 GOLDEN PROTECTIVE SERVICES 183450 RUBBER GLOVES Z
09-440-228-000-000 86.18 d
Total:: •86.18 N
tm
69497 7/23/2013 006285. RIVERSIDE HIGHLAND WATER CO 2319a July Sewer-Billing IY
21-572255-000-000 80.89
Total: 80.89 a)
C)
69498' 7/23/2013 006310 ROADRUNNER SELF STORAGE INC. 16079 July-Storage Rental ••
10-140-241-000-'000 124.00 0
Total: 124.00 .Mr..
69499 7/23/2013 006556: S.B.COUNTY TREASURER 4487 FY 13-14.Budget Allocation LAFCO
10=190-265-000-000 1,350.22 Mh
Im
-'Total: 1,350.22. a)
69500 7/23/2013 01:1277 :SANTA FE BUILDING MAINTENANCE 12192 C.Care Custodial Svcs Julv2=5(20 hrs)
09-440-244-000-000 300.00 s
Total: 300.00
6 Vouchers for bank code: bofa Bank total.: 1,956.29 A
0
CM
6 Vouchers-in this report" Total vouchers: 1,956:29
' C
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Page: 1
Packetl,'j '1,0`
City of'Grand Terrace
Check Register Index
FD No. Fund Name Dept No. Department Name/Cost Center Acct No. General Account Numbers
09 CHILD CARE FUND 110 CITY COUNCIL 110 SALARIES/WAGES
10 GENERAL FUND 120 CITY MANAGER 139 EMPLOYEES'BENEFIT PLAN
11 STREET FUND 125 CITY CLERK 140 RETIREMENT
12 STORM-DRAIN FUND 140 FINANCE 142 HEALTH/LIFE INSURANCE
13 PARK FUND 160 CITY ATTORNEY 143 WORKERS'COMPENSATION
14 AB-3229 COPS-FUND 172 BUILDING&SAFETY 138/141 MEDICARE/SUI
15 AlR'QUALITY IMPROVEMENT FUND 17.5 PUBLIC WORKS 210 OFFICE EXPENSE
16 GAS TAX FUND 180 COMMUNITY EVENTS 218-219 NON-CAPITAL FURN/SMALL TOOLS
17 TRAFFIC SAFETY FUND/TDA FUND 185 RENTAL INSPECTION'PROGRAM 220 SPECIAL DEPARTMENTAL EXP
19 FACILITIES DEVELOPMENT FUND 187 ENFORCEMENT PROGRAM 230 ADVERTISING
20 MEASURE I FUND 190 GENERAL GOVERNMENT(NON-DEPT) 235 COMMUNICATIONS
21 WASTE WATER DISPOSAL FUND 195 FACILITIES MAINTENANCE 238-239 UTILITIES
22 COMMUNITY DEV. BLOCK GRANT 370 COMMUNITY&ECONOMIC DEV 240-242 RENTS&LEASES
26 LSCPG/LGHTG ASSESSMENT DIST. 380 MGT INFORMATION SYSTEMS 245-246 MAINT BLDG GRNDS EQUIPMNT
44 BIKE.LANE CAPITAL FUND 41.0 LAW ENFORCEMENT 250-251 PROFESSIONAL SERVICES
46 STREET IMPROVEMENT PROJECTS 430 RECREATION SERVICES 255-256 CONTRACTUAL SERVICES
47 BARTON RD.BRIDGE.PROJECT 440 CHILD CARE 260 INSURANCE&SURETY BONDS
48 CAPITAL:PROJECTS FUND 450 PARKS MAINTENANCE 265 MEMBERSHIPS&DUES
32 CRA-CAPITAL PROJECTS FUND 510 STREET&SIGNAL LIGHTING 268 TRAINING
33 CRA-DEBT SERVICE FUND 600, WEST SIDE PARK 270 TRAVEL/CONFERENCES/MTGS
34 CRA-LOW&MOD HOUSING 601 TRACT 14471 PICO&ORIOLE 272 FUEL&VEHICLE MAINTENANCE
602 FORREST CITY PHASE II 570 WASTEWATER TREATMENT
631 STORM DRAIN MAINTENANCE 33-300 DEBT SERVICE
801 PLANNING COMMISSION 7XX FACILITIES IMPRV(NO CIP)
802 CRIME PREVENTION UNIT 700 COMPUTER-RELATED
804 HISTORICAL.&.CULTURAL COMM. .701 VEHICLES&EQUIPMENT
805 SENIOR CITIZENS PROGRAM
807 PARKS&REC COMMITTEE
808 EMERGENCY OPERATIONS.PROG.
Attachment: Check Register Account 1 c (1306 : Check Register No.07-23-201' 1 0 '
AGENDA REPORT
'MEETING DATE: 'July 23 2013 Council Item
TITLE: Zoning Code Amendment 13,01`. Proposed Amendment to
the Grand Terrace Municipal Code by Repealing and
Replacing' in Its Entirety Chapter -18.70 Adult -Business
r Regulations, and .Adding Chapter 5,84 Adult Business
Regulatory License and. Chapter 5.88 Adult, Business
Manager and Performer License
PRESENTED BY; Sandra. Molina, Deputy Community Development Director
RECOMMENDATION: 1. Conduct a public hearing;
2. Adopt the attached Ordinance repealing and replacing
Chapter 1.8.70 Adult Business Regulations;
3. Adopt the attached Ordinance adopting Chapter 5.:$4
Adult Business Regulatory:License and'Chapter-5..88 Adult
.Business Manage..r and Performer License.
.BACKGROUND:
'On June 7,-2012, the City Council adopted by -four-fifths, vote an interim urgency
ordinance-prohibiting the establishment or expansion of any,adult oriented business, as
permitted''by the California Government-Code. This-action was precautionary based on
third.; information of a potential.adult use establishing yin an undisclosed location in
the City, The City never received any application or inquiry 'for an adult use and an
adult use never materialized. However,, City staff was concerned that the current
ordinance, which was adopted in 1.995; may not adequately regulate all.adult uses, or
concerns for publie health, safety and welfare.
The interim urgency ordinance was extended-by a four-fifths vote of the City Council for
an additional 15 days and 10 months on July 10,, :2012, resulting .in a: 12-month
moratorium. On April 23, 2013, the City Council:voted 16 extend:the moratorium for an
additional 1.2:months.
On June 6, 2013, the Planning Commission adopted.:- Resolution recommending that.
the City-Council amend the Zoning Code by repealing and replacing, in its entirety,
Chapter 18.70 Adult Business:Regulations:
General Background=:Specific to Adult-.Uses
Lawful' adult businesses invoke protected First Amendment activities and therefore
enjoy certain Constitutional protections. Under current ease law, these adult businesses
must be allowed to- exist and operate within a community,. However; the .City may
Packet Pg:;12
impose reasonable time, place and manner restrictions on adult businesses and can
regulate them for the purpose of addressing and mitigating the various negative
secondary effects identified in the studies referenced within the ordinance. The intent of
the recommended ordinance is to address what are termed "adverse secondary side
effects" that are caused by adult businesses.
There are a number of court cases, from California, federal and United States Supreme
courts, that have held that cities may adopt land use regulations applicable to adult
businesses, such as limiting adult.businesses to specified areas of the community and r�
requiring them to be a specified distance from certain uses such as schools, churches,
parks and playgrounds, so long as these restrictions are not aimed at suppressing the
content of protected free speech.
The concept behind any regulatory zoning approach is that the regulations are designed
to address the adverse secondary side effects that adult businesses create. The
adverse secondary side effects include urban blight, increased crime, and decreased
property values. They,also contribute to the deterioration of the neighborhoods in which
they are located. It is not necessary.for a city to conduct its own studies to demonstrate
the presence of negative secondary effects associated with adult businesses.
Jurisdictions may rely on the experiences and studies of other jurisdictions in making
these conclusions. 'In formulating the proposed ordinance, City Staff obtained and
reviewed numerous copies of adult business studies or summaries of studies conducted
by or for various jurisdictions.
City Staff and the City Attorney's office reviewed the existing Ordinance and identified r'1
needed revisions; and researched existing codes, state law, and case law .since the
existing' ordinance was adopted. Secondary impact studies identifying the adverse
secondary effects related to adult businesses in support of an updated ordinance and
the regulations to be incorporated .into an updated ordinance, such as separation and
operating requirements, were also compiled. Electronic copies .of adverse impact
studies were forwarded to the City Council under a separate memorandum on June 26,
2013.
DISCUSSION:
Chapter 18.70 Adult Business Regulations
Title 18, Chapter 18.70 (Adult Business Regulations) of the Zoning Code regulates adult
businesses. Staff proposes that this chapter be repealed and replaced in its entirety,
with a revised ordinance. In doing so, zoning and licensing regulations which are
currently combined and somewhat confusing will be separated. Updated development
standards, operational requirements and siting criteria: will remain in revised .Chapter
1.8.70, and the,'licensing regulations will be incorporated into Title '5 (Business, Taxes,
License and .Regulations,) of the Municipal Code. The "licensing regulations are
contained in two new chapters, Chapter.5;84 (Adult Business Regulatory License) and
Chapter 5.84 (Adulf'Business Manager and Performer License):
Revision's to the Zoning Code are subject to a public hearing by�both the Planning
"`Packet�P �1.3'•
Commission and City Council, with the Commission making a recommendation to the
City Council. Revisions to Title 5 (i.e. Chapters 5.84 and 5.88) do not require the
Commission's recommendation or review; however, copies were provided to the
Planning Commission so that they could see the full scope'of the regulations that would
regulate adult businesses, including adult business managers and performers.
The following attachments are contained in the report: (1) Existing Chapter 18.70 (to be
repealed); (2) an Ordinance repealing and replacing Chapter 18.70 (Adult Business
Regulations); (3) an Ordinance adopting Chapter 5.84 (Adult Business Regulatory
License) and Chapter 5.88 (Adult Business Manager and Performer License); and (4)
Notice of Exemption.
Location Requirements and Measurement of.Distances (Section 18.70.050)
The existing ordinance established an Adult Business overlay which is made up of the
CM, MR and M2 zone districts within the City. It also established separation standards
between adult uses and sensitive land uses. An adult use could establish within the AB
overlay so long as the separation standards were met.
Staff conducted a comprehensive review of the properties that would meet the existing
separation requirements to determine that there are eligible,sites'on which an `adult use
could locate. This exercise excluded the separation ;standard from the 1-215 Freeway,
as it is not advisable to have a separation standard based merely on proximity to a
freeway. The City's physical and zoning characteristics are such that it is primarily
made up of residential land (52%) with limited commercial activities of any kind being
available. As such, there are limited locations for siting an adult-use. Based on the
criteria in the revised, proposed ordinance, there is one improved property in the M2
zone on which an adult use could locate, and there is one other vacant property in the
CM zone(that could be developed with an adult use.
Residents must travel outside the City limits for general basic entertainment, such as
attending a movie theater. Most residents will typically trave' to Riverside, Redlands or
possibly even Rancho Cucamonga, or they will find other options such as online
streaming of movies (i.e. Netflix, Hulu). Likewise, alternative avenues exist for adult
entertainment, including nearby locations and online sources.
For example, the closest movie theater is 5.8 miles from the City center (Barton
Road/Mount Vernon Avenue) in Riverside and the farthest used for this exercise is 22
miles in Rancho Cucamonga (Victoria Gardens). Online-research determined that there
are 16 adult businesses within 22 miles of Grand Terrace. Six are within the 5.8 miles,
and two of those six are`within two miles of the City. Given the proximity of existing
adult uses and availability of adult media via the internet, 'there are viable and
reasonable alternatives other than physical locations within the City.
In addition, there are no adult businesses currently located ;within the City, and. there
have.been no applications for adult businesses to locatewithin .the City. The number of
available sites under.the revised siting criteria in the proposed ordinance appear fully
adequate at this time-to serve the needs of any adult businesses wishing to locate in the
City at the present time, especially given the primarily residential make-up of the City,
the overall limited availability of any commercial sites within the City, and the above
alternative,avenues within close proximity to the City.
Therefore, Staff is not proposing any changes to the separation requirements except to
remove the separation requirement from the 1-215 Freeway. The table below shows the
location standards contained in the proposed ordinance.
Land use Existing Separation Proposed Separation
Standards Standards r
Park, school, church, or day 500 feet 500 feet
,care center
1-215 freeway 600.feet No separation
-Residential zone district 1000 feet 1000 feet
Adult business 1000 feet 1000 feet
Definitions (Section 18.70.020)
The definitions have been-completely updated. Of particular note; a definition. of "sex
club" has_been added,so that, later'in'the-Chapter, establishment`of a "sex club" could
be added as a prohibited'use within the City.
Definitions for "manager" and "performer" have been added and operational regulations
pertaining to such "managers" and "performers" have been included in Chapter 18.70.
A definition of"adult retail store" has been added. An "adult retail store"is defined as a
business -that has as a regular and substantial portion of its stock in trade, "adult
oriented material" for sale or rent. This definition is much broader than the current
code's definition of "adult bookstore" and "adult video store", as it includes any adult
oriented.material for sale and rent, so it would capture adult toy or novelty stores.
The definition for -"adult oriented material" (not currently defined in the existing
ordinance) includes the definition for "sexually oriented merchandise", and would
include lingerie presented in combination with other merchandise defined as "adult
oriented material".
Conditional.Use Permit
A conditional use permit will continue to.be required for the establishment or expansion
of any adult business.
Development/Operating standards (Sections 18.70.070;through 18.70.13,0)
Sections. 18.70.070 through, 18.70.130 contain the site development and operating
-standards for all adult uses. In addition, regulations on top of.the general standards are
proposed for adult arcades and viewing areas, adult live entertainment, adult motion
picture theater, adult modeling and photography studios, and adult retail stores.
The establishment of zoning regulations on adult businesses has been upheld by
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numerous Courts throughout- California and the country, as a mechanism to address
adverse secondary impacts-associated with adult business uses. For example,
regulations relating to lighting, visibility into viewing booths, and maintenance of viewing
booths are based on studies that have found that adult businesses with inadequate
lighting or clear lines of sight into all areas-of an adult business have encouraged lewd
behavior and/or illegal sexual activity at the businesses. Case law supporting the
operational standards was included in the material previously forwarded to the
Commission.
The regulation of live performers at adult businesses is especially important to the
regulation of the adult business industry generally. Separation is required to be
maintained between patrons and performers, as well as the imposition of requirements
prohibiting physical contact between the two. These regulations serve to discourage
unhealthy physical contact, as well as discouraging illegal activity such.as prostitution or
drug sales/exchanges. The clothing of performers is also regulated, so that performers
have a minimum of clothing for protection against the same types of risks. Finally, the
configuration of the public areas of adult businesses is regulated in order to prevent
unlawful sexual behavior between patrons and/or between performers and patrons,
such as restrooms, 'changing areas for performers, seating, etc. These regulations,
taken together, are intended to 'reasonably regulate--the negative secondary,effects
commonly known' to occur with adult business uses, while still, permitting such
businesses to operate and allowing the First Amendment protected activity at such
businesses.
Chapter 5.84 Adult Business Regulatory License and Chapter 5.88 Adult Business
Manager and Performer License
The adult business licensing regulations will be contained in Title 5 (Business Taxes,
License and Regulations) of the.Municipal Code in two new chapters: Chapter 5.84.and
Chapter 5.84.
Because these chapters contain the provisions for accepting and processing licenses
for adult business establishments, managers and performers they are very similar in
content. They each contain definitions, application information, investigation of the
application, including .a Live Scan, and- basis for approval or denial _(which can be
appealed). Falsification of the application or conviction of specified crim`es,would be a
basis for denial. The licenses are required to be renewed annually and cannot be
transferred without approval of the City.
Licenses can also be suspended and/or revoked for cause such gas, but not limited to,
violation of zoning code provisions, operation while a license is already suspended,
providing misleading, false or fraudulent, material information "on °the ,application,
conviction of a sex ,related crime (as identified in:the ordinance), or allowing a .person
under 18 years of age on the premises. The Director-or":designee :has the authority to
determine whether to suspend or revoke the-license at a hearing. The decision can be
appealed.
A main difference between the two, aside from the type of license being requested, is
the time frame in which to review and act on an application. The City has five days to
determine whether an application is complete. Once complete, the City must act on a
adult business regulatory permit within 20 days, and on a performer or manager license
within 10 days. This has to do with First Amendment protections for performers. If an
investigation cannot be completed within the time frame, a provisional license can be
issued until the review can be completed, and an action taken.
ENVIRONMENTAL REVIEW
The proposed Ordinances are not subject to the California Environmental Quality Act
(CEQA) pursuant to Sections 15060(c)(2), and 15061(b)(3) of the CEQA Guidelines
implementing the California Environmental Quality Act. A Notice of Exemption is
included as Attachment.4, for adoption.
ATTACHMENTS:
1. Existing Chapter 18.70 Adult Business Regulations
• 2. Ordinance—Chapter 18.70 Adult Business Regulations
• 3. Ordinance_Chapters 5.84 and 5.88
• 4. Notice of Exemption
APPROVALS:
Sandra Molina Completed 07/08/2013 11:32 AM
Richard Shields Completed 07/08/2013 3:20 PM
Finance Completed 07/11/2013 10:40 AM
City Attorney Completed 07/15/2013 10:05 AM
Community Development Completed 07/15/2013 10:42 AM
City Manager Completed 07/16/2013 7:55 AM
City Council Pending
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5/16/13 Municode
TO BE REPEALED
Grand Terrace, California, Code of Ordinances>> Title 1.8-ZONING>> Chapter 18.76 -ADULT-BUSINESS
REGULATIONS
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Chapter 18.70 -ADULT BUSINESS REGULATIONS
Sections: y
18.70:002-Purpose and intent. g
18.70.004-Definitions. cc
_ 18.70.006-Restriction to adult business (AM overlay2ones.
18.70:008-Statem ents.-and:records.
18.70.010-Conditional use permit required. H
18.70.012-.Time limits for action on c64fional use pemiit. S.
18.70.014-Sale/serving of alcohol and into)acated-persons.
m
18.70.01'6-Suspension and revocation of conditional use permit.
.18.70.018-Adult business permit eeauired. Q
18.16.020-Application for adult business permit.
18.70-.022=Investioafion. N
18.70.024-Decision bvcommunitv'developmentdirector on apOicaton for an adult.business permit.
W
18.70.026-Grantofapplicafion for an adult business permit." c
18.70.028 Denial of armlicaton for adult business.permit.
18.70.030-Inspecfion.
18.70.032-Expiration of adult business permit.
18.70.034-Revocafion of adult business permit.
LJ 18.70:036-Hearing on revocation of adult business berm_ it. c
18.70.038-Reoulafions nonexclusive: -
18.70.040_Volations—Penalfies. m
18.70:042-Public nuisance. V
CO.
18.70002 -Purpose and intent.
a
The purpose and intent of this chapter are to:regulate adult-oriented businesses which, unless 2
closely regulated, tend to have serious secondary effects on the community, which effects include, co
but,are not limited-to., the-following: depreciation of property values and increase in:vacancies in N
residential and commercial areas in the vicinity of adult:businesses; interference with residential w
.property owners' enjoyment of their property when such.property is located in the vicinity of adult
businesses as a result of'increases in crime, litter, noise arid.Vandalism; higher=crime rates in the
vicinity of adult.businesses;-and,blighting conditions such as love-level maintenance of commercial E
premises an:d parking lots, which.thereby have.a deleterious effect upon adjacent areas:Special �.
regulation of these businesses is necessary to prevent these-adverse effects-and the blighting or a
degradation of the neighborhoods in the vicinity of the adult businesses.
It is neither the intent nor the effect-of this chapter-to impose limitations or restrictions on the
content of any communicative material. Similarly, it is neither.the intent nor the.effect of this chapter to
restrict or deny-access by adults to communication materials or to deny_ access by the distributors or
exhibitors-of adult businesses to=their intended market.
Nothing in this-chapter is intended to authorize, legalize or permit the establishment, operation
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or maintenance of any business, building or use which violates any city ordinance or,any statute o
the state of California regarding public nuisances, unlawful or indecent exposure, sexual conduct,
lewdness or obscene.or harmful matter or.the exhibition=or public display thereof.
18.70:004 -Definitions.
The following words and phrases shall, for the purposes of this chapter, be defined as follows,
unless it is clearly apparent from the context that another meaning is intended: N
• c
0
"Adult arcade" means an establish ment.where, for any form of•consideration, one or more still 5
or motion picture projectors, slide projectors or similar machines, for viewing.by five•or fewer persons
each,.are used to show films, motion pictures, video cassettes, slides or other photographic
reproductions which are characterized by an emphasis upon the depiction or description of-specified d
sexual activities or specified anatomical areas. c
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"Adult bookstore or adult video store" means an.establishment which has as a regular and m
substantial-portion of its stock-in-trade business, or advertising to the-sale,rental or viewing.for any a
form of consideration any or more of the following: books,-magazines, periodicals,or other printed
matter, or photographs, films, sculptures, motion pictures,,videocassettes, slides or other visual
representations.("adult material")which are•characterized by an emphasis upon the depiction or
description of-specified sexual activities or specified anatomical areas. See "Adult business''for c
definition of the term.regular and substantial course.
"Adult business" means-any business establishment or concern which as a regular and
substantial-course of conduct performs or operates as an adult bookstore, or adult-video store, adult
theater, adult motion:picture theater, adult cabaret, adult motel/hotel, adult arcade, or any other ,
business or.concern which:as a regular and substantial portion of'its business offers to its patrons
products, merchandise, services-or entertainment which are distinguished or characterized by:an m
emphasis on matter depicting, describing or relating to specified.sexual activities or specified
anatomical areas but not including those uses or activities, the regulation of which is preempted by .c
state law. "Adult-business" shall:aiso include any establishment which.as a regular and.substantial
course of conduct provides or allows performers, models or eimployees to appear in any public place
dressed only.in lingerie.
"Adult cabaret" means a nightclub, restaurant or similar business Mich regularly aM
features live performances which are characterized by the exposure of specified anatomical areas-or H
by specified sexual activities, or films, motion pictures, video cassettes,.slides or other photographic X
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reproductions which are characterized by an emphasis upon the depiction or description of specified
sexual activities or specified anatomical areas.
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"Adult hotel/motel" means a.hotel or motel or similar business establishment offering.public
accommodations for any form of consideration which (1) provides patrons with closed-circuit
television transmissions, films, motion pictures, video cassettes,:slides or other"photographic a
reproductions which are characterized by an emphasis upon the depiction or description of specified
sexual activities or specified anatomical areas; and/or(2) rents, leases or lets any room for less than
a six-hour period,,or rents, leases or lets any.single room more than twice in a twenty-four-hour
period.
"Adult motion,picture theater":means a business establishment where, for,any form of
consideration, films, motion pictures, video cassettes, slides or similar photographic reproductions are
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shown, and in which a substantial portion of the total presentation time is devoted to.the showing o a
material which is characterized by an emphasis upon the depiction or description of specified sexual
activities or specified anatomical areas.
"Adult theater" means a theater, concert hall, auditorium or similar establishment which, for any
form of consideration, regularly features live performances which are characterized by the exposure
of specified anatomical areas or by specified sexual activities.
Establishment. Establishment of an adult business means and includes any of the.following:
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1. The opening or commencement of any such business as anew business; o
2. The conversion of-an existing business, whether or not an adult business,-to any of the
adult businesses defined herein;
3. The addition of any of the adult businesses defined herein to any other existing adult y
business; or d
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4. The relocation of any such adult business. •�
"Gross receipts"means and includes the total amounts actually received.or receivable from the m
sale, trade, rental, display or presentation of services, products, adult material or entertainment which a
are characterized.by an emphasis on matter depicting, describing or relating to specified sexual ••
activities or specified anatomical areas. co
"Owner" or"permit holder" or"permittee" mean any of the following: (1) the sole proprietor of c
an adult business; or.(2)-any general partner of a partnership which owns and operates an adult 2
business; or (3)the owner of a controlling interest in a corporation which.owns and operates an adult 3
business; or-(4)-the person designated by the officers of a corporation to be the permit holder for an
adult business owned and operated by the corporation. H
"Person" means and includes person(s), firms, corporations, partnerships, associations, or any 3
other forms of=business organization or group(s). m
"Regular and substantial course of conduct and regular,and substantial portion of its business`' a
means any adult business where one or more of the following conditions exist: :ti
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1. The area(s):devoted to.the display of adult material exceeds fifteen percent of the total
display area of the.business; or
2. The business or concern presents any type of live entertainment characterized by an
emphasis on specified sexual activity or specified anatomical parts, or performers, c
models or employees appearing in public dressed only in lingerie on any four or more x
separate days within any thirty-day period; or w
3. At least twenty-five percent of the gross receipts of the business are derived from the
sale, trade,-rental, display or presentation of services, products, adult material, or
:entertainment which are characterized by an emphasis on matter depicting, describing,
or relating to specified sexual activities or specified anatomical areas.
"Religious institution".means a structure which is used primarily for religious worship and Q
related religious:activities.
"School" means any child care facility, or an institution of learning for minors, whether pUblic:or
private, which offers instruction in those courses of study required by the California Education Code
or which is maintained pursuant:to standards set by the State Board of.Education. This definition
includes a nursery school, kindergarten, elementary school,junior high school,,senior high school or
any special institution of education, but it does not include a vocational or professional institution of
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higher education, including a community or junior college, college or university.
"Specified anatomical areas" means and includes any of the following:
1. Less than completely and opaquely covered human genitals, pubic region, buttocks,
anus or female breasts.below a point immediately above the top of the areola; or
2. Human male genitals in a discernable turgid state, even if completely and opaquely
covered.
"Specified sexual activities" means and includes any of the following:
N
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1. The fondling or other erotic touching of human genitals, pubic region, buttocks, anus or
female breasts;
2. Sex acts, actual or simulated, including intercourse., oral copulation or sodomy;
3. Masturbation,actual or simulated; N
4. :Excretory functions as part of or in connection with any of the activities described in
subsections.(1) through (3) of this definitions; or
m
5. Striptease, or the removal of clothing, or the wearing.of transparent or diaphanous
clothing, including models dressed only in lingerie to the point where specified a
anatomical.areas are exposed. CO
"Substantial enlargement" means the increase in floor area occupied by the business, by more
than ten percent as the floor area exists on the effective date of this chapter. N
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"Transfer of ownership or control of an adult business" means and includes any of the s
following: a,
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1. The sale,_lease or sublease of the business; or
2. The transfer of securities which constitute a controlling interest in the business, whether
by sale, exchange or similar means; or m
3. The establishment of a trust, gift or other similar legal devise which transfers ownership
or control of the business, including.the transfer by bequest.or other operation of law Q
.upon the death of a person possessing the ownership or.control. ti
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18.70.006 - Restriction to adult business (AB)-overlay zones.
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There is created a-classification known as the adult business (AB) overlay zone. The zoning c
map identifying the adult business-(AB) overlay zone is attached to the ordinance codified in this
chapter as Exhibit A and is on file in the office.of the city clerk. The regulations set forth in this w
chapter shall apply in all zones or areas of the city in addition to other applicable regulations set.forth-
in this code; provided, however, that if any of the regulations specified in this chapter differ from any
of the corresponding regulations specified in this-title, or other ordinances pertaining to planning and E
zoning, for any zone or area which is combined with the AB overlay zone, then in such case the cc
provisions of this'chapter shall govern. Subject to the foregoing, adult businesses-shall be permitted a
in all areas designated as being located in the AB overlay zone, provided:
A. No adult business shall be permitted in any area of an AB overlay zone if the underlying
.planning area wherein such adult business is proposed already has three other adult
:businesses. No adult business shall be located within one thousand feet of another
adult business, whether or not said adjacent adult business is within the city limits of
Grand Terrace.
B.
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Each adult business must, prior to commencement or continuation of such business,
:first apply for and receive from the city council a conditional_use permit.
C Each adult.b.usiness must, prior to commencement.or continuation:of-such business,
first apply'for and receive an adult business permit.
D. :Each adult business must complywith all applicable regulations specified in this chapter.
E. Each adult business must comply with all applicable regulations of other zoning use
designations with which the AB overlay zone is combined.
F. A minimum distance shall be maintained.from certain sensitive uses as follows:
1• Five hundred feet from parks, schools, churches and day care centers;
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2•. Six hundred feet from the freeway;- '
3• One thousand feet from residential uses. a,
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18.70.008 -Statements and records. N
Person(s) required to obtain an adult_business permit pursuant to the provisions of this m
chapter for any business establishment which provides products,:adult.Material, merchandise, a
services or entertainment which is distinguished or characterized by an emphasis on matter depicting-, ••
describing, or relating to specified sexual activities or specified anatomical areas,.as defined in N
Section 18.70.004 of this chapter, shall maintain complete records which can be segregated with
regard to all transactions involvihd:such products, merchandise,-adult material, services-or c
entertainment which are sufficient to-establish the percentage of gross receipts of the business which •a
is derived from such transactions. Such records shall be maintained for a period of at least three Z
years. IX
No person.requi:red to keep records under this section shall refuse to allow authorized
representatives of the city to examine said records at reasonable times and places. -
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This section shall not be applicable,to a business establishment for which such transactions a
constitute less than twenty-five percent of the gross receipts of the business. a
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18.70.010 -Conditional use-permit required. ;CL
A. It is unlawful for any person to operate, engage in, conduct or carry on ariy.adult business t
Within the city unless the person of the adult.business first obtains,.and continues to maintain v,
in.full:force and effect an adult business.permit pursuant to Section 18.70.018, and:a w
conditional use permit. In addition to the base zoning requirements governing conditional use ,
permits generally,the following additional requirements shall be satisfiediby-adult businesses.
Such additional requirements shall be included in any approved conditional use permit:
1 Maximum.occupancy load, fire exits, aisles and fire equipment shall be regulated,
c,
designed and provided:in accordance with the fire department and building regulations a
and stand ards'adopted by the city.
2• No adult.business shall be operated in any manner that permits the observation of any
material depicting, describing or relating to.specified sexual activities.or specified ✓
:anatomical areas from any public way or from any location outside the building or area
of such establishment. This provision shall apply to any display, decoration, sign, show
window or other opening.
3. Lighting shall be required which is designed to illuminate all off-:street' parking.areas
et
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serving such use for the purpose of increasing the personal safety of store patrons an
.reducing the incidents of vandalism and theft. Said lighting shall be shown on the
required plot plans.
4. No loudspeakers or sound equipment.shall be used by an adult business for the
amplification of sound to a level discernible by the public beyond the walls of the
building in which such use is conducted or which violates any noise restrictions as may
be adopted by the city.
5. The building entrance.to an adult business shall be clearly and legibly posted with a
notice indicating that minors:are precluded from entering the premises. N
.6• The adult business shall not be located, in whole or in part, within any portable o
structure. �m
7. The adult business shall not conduct or sponsor any special events, promotions,
festivals, concerts or similar activities which would increase the demand for parking N
spaces beyond the approved number of spaces for the business.
$• The adult business shall not conduct any massage, acupuncture, figure modeling, •U)
tattooing, acupressure or escort services and shall not allow such activities on the 00
premises. 3
9• Any adult business which allows customers to remain on the premises while viewing any a
live,.filmed or recorded entertainment, or while using or consuming the products or CO
service supplied on the premises; shall conform to the following requirements:
a• At least one security guard shall be on duty outside the premises, patrolling the c
grounds and parking areas, at all times while the business.is open. If the
occupancy limit of the premises is greater than fifty persons, an additional
security guard shall be on duty inside the premises. The security guard(s) shall w
be charged with preventing violations of law and enforcing compliance by patrons
with the requirements of this chapter, and notifying the San Bernardino County
sheriffs and city code enforceent department of any violations of law observed. m
m
Any-security guard required by this subparagraph shall be uniformed in such
manner so as to be readily identifiable as a.security guard by the public and shall Q
be duly licensed as a security guard as required by applicable provisions of state ti
and/or local law. No security guard required pursuant to this subsection (A)(1)(a)
shall act as a doorperson, ticket seller, ticket taker or admittance person while
acting as a security guard hereunder.
b• Landscaping shall conform to the standards established for the zone, except that, ES
if the adult business is the sole use on a lot, no planting shall exceed thirty inches c
in-Height, except trees with foliage not less than six feet above'the ground. x
c• The entire exterior grounds, including the parking 1ot, shall be lighted in w
accordance with standards promulgated by the city.
c
d• The premises within which the adult business is located shall provide sufficient E
sound-absorbing insulation so.that noise generated.:inside said premises shall
not be audible anywhere on any adjacent property or public right-of-way or within a
any other.building or other separate unit within the same building.
e• No exterior door or window on the premises shall be propped or kept open at any
time while the business is open, and any exterior windows shall be covered with
opaque covering at all times.
f Permanent barriers shall be installed and maintained to screen the interior of the
premises from public view for each door used as an entrance/exit to the business.
10. All indoor areas of the adult business within.which patrons are permitted, except
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restrooms, shall be open to view at all times.
11. Except as specifically provided in this,chapteri the adult business shall comply with the
zoning, parking, development and design standards applicable to the zone in which the
business is located.
12. No adult material shall be displayed in such manner as to be visible from any location
other than within the premises occupied by the-adult business.
13. No.person under the age of eighteen years shall be,permitted within the premises at any
time.
14. The adult business shall provide and maintain separate restroom facilities for male c
patrons and employees and female patrons and employees. Male patrons and e
employees shall be:prohibited from using the restroom(s)for females, and female 3
patrons and,employees shall be prohibited'from:using the restroorri(s) for males, except
to carryout duties of repair, maintenance and-cleaning of the restroom.facilities. The
restrooms shall be free from any adult material. Restrooms shall not contain television
monitors or other motion picture or video projection, recording or reproduction '
equipment. The foregoing provisions of this subsection (A)(14) shall not be applicable to. m
an.adult business which deals exclusively with sale or rental of adult material which is
not used or consumed on the premises, such as an adult:bookstore or adult video store, a
and which does not provide restroom facilities to its patrons or the general public.
N
15. Except as otherwise required by law for adult motion picture theaters, and except as .v
provided in subsection (A)(18) of this-section with regard to adult arcades, and c
subsection (A)(19) of this section with regard to.adult businesses providing live 2
entertainment, all areas of the adult business accessible to patrons shall be illuminated
at least to the extent of twenty footcandles, minimally maintained and evenly distributed
at ground:level. N
16. All on-site signage shall conform.to the relevant provisions of this code regarding signs. c
All adult materials and.activities shall:be concealed from view from any public right-of- m
way; parking lot or neighboring property.
17. No adult business shall be open or operating during the hours from.ten p.m. to eight a
a.m. c
18. The-following additional requirements shall pertain to adult arcades which provide oneCO
or more:viewing area(s): ;
a
a• Upon application for a conditional use permit for an adult arcade, the.application
shall be accompanied by a diagram of the.premises showing,a plan thereof
a�
specifying the location of one or more manager's stations,the location of all G
overhead lighting fixtures and designating any portion of the premises in which N
patrons will not be permitted. A manager's station may not exceed.thirty-two
square feet of floor area with no dimension greater than eight-feet. The diagram
shall also designate the place at which the adult business permit.will be E
conspicuously posted. A professionally prepared diagram in the nature of an
engineer's or architect's blueprint shall not be required; however, each diagram
shall be oriented to the:north or to some.designated street or object and shale be a
drawn to a designated scale with marked dimensions sufficient to show the
various internal dimensions of all areas of.the interior of the adult arcade to an
accuracy of plus or minus six inches.
b'• The application shall be sworn to be true and correct by the owner under penalty
of perjury.
C. No-alteration in the.configuration or location of a manager's station(s) may be
made without the prior approval of the city council.
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d. It shall be.the duty of the owner(s).to ensure that at least one employee-is on
duty and situated at each manager's station at all times that any patron is present
insid'el the adult arcade.
e• The interior of the adult arcade shall be configured in such a manner that there is
an unobstructed view from-a manager's station of every area of the adult arcade
to which any patron is.permitted access for any purpose excluding restrooms. If
the adult arcade has two or more manager's stations designated, then the interior
of the adult arcade shall be configured in such a.manner that there is.an.
unobstructed view of each area of the adult arcade to which:any patron is
permitted access-for:"any purpose, excluding restrooms,.from at least one of the c
manager's stations. The view required in this subsection must be by direct line of \
sight from the manager's station.
f• It shall be the duty of:the owner(s) and it shall also be the duty.of all employees
present on the adult arcade to ensure that the individual viewing.area-specified in
subsection (A)(1 8)(f).of this section.remains.unobstructed by any doors, walls,
persons, merchandise, display racks or.other materials at all times and to ensure m'
that no-patron is permitted access to any area of the adult arcade which has
been designated as an area in which patrons will"not"be permitted in the
application filed pursuant to subsection (A)(!8)(a) of this section.
g• No'individual viewing area may be occupied by more than one person at any one
time. "Individual viewing area" means a viewing area designed for occupancy by N
one person. Individual viewing areas of the adult arcade shall be operated.bad o
maintained without any hole or other opening or means of direct communication a
or visual or physical access between the interior space of two or:more individual d
viewing areas.
h• No individual viewing area shall contain booths, stalls or partitioned portions of ~ t
such individual..viewing area.used for the viewing of adult material or other forms
of entertainment, having.doors, curtains or portal partitions, unless such- m
individual viewing areas:containing booths, stalls or partitioned portions have at
least one side open to the manager's station and visible to such manager's A
station. Any;booth, stall or partitioned portion of an individual viewing:area 00
authorized under this subparagraph shall be constructed so:as to allow twelve
inches.of open space between the bottom of the.stall or partition,and the floor. a
Such open.space shall remain:unobstructed at all times. _
i The adult arcade shall be equipped with overhead lighting fixtures of sufficientIM
intensity to illuminate every place to.which:patrons are permitted access but such H
lighting shall:not be of an intensity as to prevent the Viewing of the adult material. .w
J It shall be the duty of the owner(s) and,it shall also be the duty, of all employees
present in the adult arcade to ensure that:the illumination described above is
maintained at all times that any-patron is present in the adult arcade. _
19. The following additional requirements shall pertain to adult businesses providing:live o
entertainment depicting specified anatomical areas or involving specified sexual a
activities:
a• No person shall perform live entertainment for patrons of an adult business
except upon a stage.at least eighteen inches above the level of the floor which is
separated by a distance of at least six feet from the nearest area.occupied by
patrons', and no patron shall be.permitted within six feet of the stage while the
stage is occupied by an entertainer. "Entertainer" means any person who is an
employee or independent contractor of the adult business, or any person who,
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without any compensation-or other form of consideration, performs live
entertainnieri forpatrons of ari-ad-Olt business. -
b• The adult business shall:provide separate dressing room facilities for entertainers
which are exclusively dedicated:to the entertainers' use.
C. The adult business shall provide an entrance/exit to the adult arcade-for
entertainers which is separate from:the entrance/exit used by patrons.
d• The adult business shall provide access for entertainers between the stage and
the dressing:rooms which is completely separated from the patrons. If such
.separate access is.not physically feasible, the adult business shall provide-a H
minimum three-foot-wide walk aisle for entertainers between the dressing room o
area and the stage, with a railing, fence or other barrier separating the patrons o
J and the entertainers capable of(and which actually results in) preventing any
physical contact between patrons and entertainers.
N
e• No entertainer,:either before, during or after performances, shall have physical
contact with 'any patron and no patron shall have physical contact with any
entertainer either before.; during or after-performances by such:entertainer. m
r
f Fixed rail(s) at least thirty inches in height shall be maintained establishing the
separations between.entertainers-and patrons required by this subsection (A) cc
a.
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9• The adult arcade shall be equipped with overhead lighting fixtures of sufficient
intensity to illuminate every place.to which patrons are permitted access with an c
illumination of not less than twenty footcandles as measured at the floor level.
B The foregoing applicable requirements of this section shall.be deemed conditions of permit C
approval; and failure to comply with each and all of such requirements shall be grounds for It
revocation-of the conditional use permit and the adult.business license issued pursuant.to this
chapter. _
,Ord I
- N
7
18:70'012 -Time limits for.action on conditional.use permit. a
0
An application for a conditional use permit shall be approved or denied.by the city council o
within forty-five days of its acceptance as complete by the community development department. The
city council, or city council on appeal, shall 'approve-an application for a conditional use permit for an c
adult business.upon findings that the applicant has:met all the applicable.requirements and, v
performance standards of this chapter..Any-proceeding to appeal such decision to.the city council c
shall be filed with the city clerk within fifteen days of such decision..An.appeal shall be heard within n
thirty days of its filing with the city clerk. Any proceeding to seek judicial review of any city council IX
-decision shall be brought in accordance with the provisions of this code and-applicable state law. VZ
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18.70.014 -Sale/serving of alcohol and intoxicated persons. a
A. It.is unlawful to sell, serve or permit the consumption of alcohol in a structure occupied-by an
adult business.
B. It is unlawful for any person under the age of eighteen years or any obviously intoxicated
person to enter or remain on-the premises.of an adult business at any time. A sign.giving
notice of this provision shall be prominently posted at each entrance.to the premises of.the
adult business,.
C• It is unlawful for any person having responsibility for the operation of an adult business to _
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allow any:person under the:age of eighteen years to enter or remain on the premises oft the
business, whether or not such person having,responsibility for the operation of an adult
business has knowledge that the person is under the age of eighteen years; or to allow any
obviously-intoxicated person'to enter or remain on the premises of the business. For the
purposes-of this section; the.licensee of an adult business:license,,when present on.the
premises,and the:manager or other person(s) in charge of the premises,.are persons having
responsibility for the operation of the business.
18.70:016 -Suspension and revocation of a conditional use permit. c
w
The city council may suspend or revoke any conditional use.permit if it is found that-any of the
following conditions exist in addition to the criteria set forth in:this chapter:
H
A. The operation conducted by the permittee does not�complywith all applicable laws,
including,:but not limited to, the city's building, health, zoning and fire ordinances, the 3
requirements of this chapter, and the conditions of approval of the conditional use m
permit;
B. That the approved use has been substantially enlarged without city approval; that the a
approved use has been partially or wholly converted to another adult business without CO
city approval; that the conditional use permit has not been utilized within six months of its
issuance; or H
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C. The.adult business permit has been suspended:or revoked. °
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18.70.018 -Adult business permit required.
An applicant for the operation of an adult business must obtain an adult business permit in
addition to a conditional.use permit. No,adult business permit shall be sold, transferred orassigned m
by-any license holder; or by operation of law,.to any other person, group, partnership, corporation or . a
any other entity, and any such sale, transfer or assignment, or attempted sale, transfer or assignment e
shall be deemed to constitute a Voluntarysurrender-of such permit, acid such ~p permit shall:be
thereafter null and void. An adult business permit held by an individual in a:corporation or partnership
is subject to the same rules of transferability as contained above..Any change in the nature or a
R
composition of:the adult business.from one type of adult business use:to.another type of adult =
business use shall also render the permit:null and void. An adult business permit shall be valid only c
forthe-exact location specified in the permit. '
x '
(Or., /53 § 2(pa ,; 99°5) W
' c
18.70.020 -Application for adult business permit.
: _
A. Applicants for such permits shall file a written, signed and verified application or renewal
application on:a:form provided by the-community development director. Such application shall a
contain:
1., The name and permanent address of applicant;
2. The:name•and business address of the applicant: If the applicant'is a-corporation, the
name shall be exactly as set forth in its Articles of Incorporation and the applicant shall
show the name-and residence address of each of the officers, directors and each
stockholder owning no less than twenty-five percent of the stock of the corporation. If-
:the applicant is a partnership, the application shall showthe name and residence
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address of each.of:the members, including limited partners;
3. A detailed description of the manner of providing-proposed entertainment, including
type of entertainment and the number of person s.engaged in'the entertainment;
4.. Hours of operation;.
5. A location, address and floor plan showing,where the specific.entertaintnent uses are
proposed:tobe conducted within the building;
6.. The name or names of the person or persons having the:management or supervision of
applicant's business:and of any entertainment;
7. A statement of the nature and.character of applicant's business if any, to be carried on
in.conjunction with such entertainment;
�j 8• For a renewal application, applicant in-addition shall indicate any changes-since the a�
filing of the initial application; &!
9• :Whether the applicant or any of the other individuals.pursuant to this section has had a ,
previous perMltr under the ordinance..codified in this chapter'or other similar'ordinances •_
from another city or county denied, suspended or revoked, including the name and. m
location of'the adult business for which the permit was denied', suspended or revoked',
as:well as the date:of the denial, suspension or revocation, and whether the:applicant or a
any other-individuals listed pursuant to this.section has been a partner in a partnership
or an officer, director or principal stockholder of:a.corporation:that has permitted under N
this section whose permit has previously been denied, suspended or revoked, including
the name and location of the adult•business for which-the permit was denied;-suspended c
or revoked as well as the date of denial, suspension or revocation;
10. Whether the applicant or any other;individual listed pursuant to this section holds any �.
other permits and/orlicenses for an-adult business from another city or county; and if so
the names and locations of-such other permitted businesses;:and
11. If a person who wishes to operate an adult business is an individual, he/she must sign
:the application for. a.permit as applicant. If a person who:wishes to operate an:'adult m'
businesses-other than an individual, each individual who has a ten:percent or greater
interestin-the business-must sign the applicati6nf6r a permit as applicant. If a a
CD
corporation is listed as owner of an adult:business or as the:entity which wishes to
operate such a business, each individual having a ten percent or greater interest in the
corporation.must sign the application for a permit as applicant.
CL
B. All applications for a:permit or renewal shall be .filed with the community development-director. v
Each application shall-be accompanied by a nonrefundable fee for filing or renewal in an =,
amount determined by resolution:of the city council, which fees will be used to defray the costs. o
of investigation, inspection and processing of such application. w
C. Applicants for an adult business permit under this section shall Have a continuing duty to
:promptly supplement application information required:by this section-in'the event that said
information changes in any way from what is stated on the application. The failure to comply E
with said continuing duty-within thirty days from:the date of such:change, by supplementing the
.application on file with the community-development director or his/her designee, shall be a
grounds for revocation of a permit.
5.
18.1. .022 -Investigation..
Upon receipt of.an.application properly filed with the community development director and
upon.payment of the,nonrefundable application fee, the community development director shall
immediately stamp the application as received and shall immediately thereafter send.photocopies of
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the application-to the sherifPs.department and any other city departments or other agencies
responsible for enforcement of health, fire and building codes and laws.. Each departmentor agency
shall promptly conduct.an investigation of the applicant, application and the proposed adult business
in accordance with its responsibilities under law and as set forth in this chapter. Said investigation'
shall be completed within twenty-five days of receipt of the application:by the community development
director. At the conclusion of its investigation, each department or agency shall indicate on the
photocopy of the application its approval or disapproval of the application, date it, sign it, and, in the
event it disapproves, state the reasons therefor.
A department or-agency shall-disapprove an application if it finds that the:ptbposed adult
business will be in violation of any-provision of any statute, code, ordinance, regulation or:other law in
effect in the city. After its indication Hof approval or disapproval, each department or agency shall
immediately return the:photocopy of the application to the community development director.
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18.70A24 -Decision by community development director_on application for an adult m
business permit. a
The community development director or designee (hereinafter"community development
director") shall grant or deny an application for a permit within'forty-five days from the date of its
proper fling:-Upon the expiration of the forty-fifth.day, unless the applicant requests and is granted a c
reasonable extension of.time, the applicant shall be permitted to.begin operating the business.for. o
which the permit is sought, unless and until the community development director notifies the applicant
of a denial of the application and states the reason.(s) for that denial.
3§ 2(pai!1 ;c.Y5l
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18.70.026 -Grant of application for an adult business permit. m
A. - The city clerk shall grant the application unless one or more of the reasons set forth in section a
1:8.70.028 (Denial of application for adult business permit).is present. n
B. The'permit, if granted, shall state on-its face the name of the person or persons to whom it isCO
granted, the expiration date, and the:address of the.adult business. The permit shall also ;
indicate.that the adult business whethet permitted or not may be subject to prohibitions against
public nudity and indecency pursuant to the United States Supreme.Court decision in'Barnes v
v. Glen Theatre; Inc., III S.Ct. 2456,.11:5 L.Ed 2d 504..(June 21, 1991) and any applicable
California'statutes or city regulations or ordinances consistent therewith. The permit shall be .9
posted in a conspicuous place at or near the entrance to the adult business so that it can be W
easily read at any.time.
.E
s
1.8.7042.8 -Denial of application..for adult business.permit. a
A. The community development director shall deny the application for any of the following
reasons:
1 That the building, structure, equipment and location used by the business for which a:
:license is required herein do not comply with the requirements and standards of the
:health, zoning, fire and safety laws of the state of California and of the city of Grand
Terrace;
2• That the applicant,.his or tier employee, agent, partner, director, officer, stockholder or
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manager has knowingly made any false, misleading or fraudulent statement of material.
fact in the application for an adult business permit or in any report or.record-eequired to
be filed'with"the sheriffs.department, sheriff or.other department of_the city;
3: That the applicant has had any type of adult business permit revoked by any public
entity within two years of the date of the application.;
4• The applicant has been.convicted of a felony or misdemeanor which offense is classified
by the state as an offense involving sexual crimes against children, sexual abuse, rape,
-kidnapping, distribution of obscene. material or material harmful to minors, prostitution or
pandering, including, but not necessarily limited•'to; the violation of any crime requiring H
.registration under California Penal Code Section-290, or any violation of Penal.Code c
�. .Sections 243.4, 26:1,,261.5, 264.1, 266,266a through 266k,.:inclusive, 267,.286; 286.5,
288, 288a, 311 through.311..10, inclusive, 314, 31:5, 316, or 647;, t
5• That-on the date that the business for which-an:adult business permit is required"herein
fA
commences, and thereafter, there will.be no responsible ad-ult on the premises to act as
manager at all times during which the business is open; H
6• That-a conditional use permit has been denied for the proposed use;" / m
7, That an applicant is under eighteen years of age; :a
8• That an applicant, manager, .or any agent or employee of the applicant or manager has a
been convicted in a court of-competent jurisdictlon of any crime in conjunction with oras co
a result of the operation of an adult business or any'sex related crime prior to the filing
of the application. The fact that a conviction.is being appealed will have no effect on,
c
disqualification of the applicant :or
9• That the required application fees have not been paid.
_ B. If the.Community develop Mont.director denies,the.application, he shall notify the applicant of
`} -,the denial and state the reason(s) for the denial.
C. If a person applies for an adult business permit for a particular location within a period of w
twelve_months from the date.of denial of a previous application for an adult business:permit at m
the location, and there has not been an intervening change in the circumstances which could:
reasonably be expected to lead to a different.decision regarding.the former reasons for denial, a
the application shall be.denied. �
CO
(Or' 1:5.3 § �t,D:al}, 19) ) �
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18.70.030..Inspection.
An applicant or permittee shall permitrepresentatives of the sheriffs-department, health IM
department, fire department, code enforcement, planning department, or other city departments or
agencies to.inspect the premises of an adult business for the purpose:of insuring compliance-with the w
law, at any time it:is occupied or opened for business. A.person who operates an adult business or.
his or her agent or employee is in violation of the provisions of this section if he/she refuses to permit 5
such lawful'inspection of the premises at any time it'is occupied or opened for business.
- es
3 y 2fl:a,!; i9J 151 Q
18.70.032 -Expiration of adult business permit.
Each permit shall expire one year from the date.of issuance and may be renewed only by
making application as provided in Section 18.70.020 (for renewals, filing .of original survey shall be
sufficient). Application for renewal shall be made at'least thirty days before the expiration date, and
when made less than thirty days before.the expiration date,-the expiration of the`permit shall not.be
affected. _
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When the.city clerk denies renewal of the adult business permit,.tho applicant shall:not be
issued a permit for one year from the date of denial: If, subsequent to denial, the community
development director finds that the basis for denial of the renewal of the permit has:been corrected;
the applicant shall be granted a permit if at least ninety days have elapsed since the-date denial
became.final..
18.70.034 -Revocation of adultbusiness permit.
N
After an investigation, notice and hearing, the community development director shall revoke an o
existing-adult business permit,.as shall be found necessary to assure the preservation of the public
health and safety; if the evidence presented establishes that one or more of the-following conditions
exist:
N
W
A: The building, structure,,equipment-and location used by the business fail-to comply with N
the requirements or fail:to meet the standards of the health, zoning, fire and safety laws m'
of the state of California, or of the ordinances of the:city of Grand Terrace; _
B• The permittee,,-his or her employee, agent, partner, director, officer, stockholder or a
manager has knowingly made any false, misleading or fraudulent statement of material o
facts in the application for a license, or in any report or record required:to be filed with eV
the sheriff or other departments of the city; U)
C. The permittee has had any type of adult business permit revoked by=any public entity w
within three years of the date the license was'issued;
D. There is not a-responsible adult on the premises to act as a manager at all times in
which the business is open or operating; ;
E. The permittee is convicted-of a-felony or. misdemeanor which offense is.classified-by'the _
state as an offense involving sexual crimes against children, sexual abuse, rape,
kidnapping; distribution:of obscene material or material harmful to minors, prostitution or m
pandering,:including, but not necessarily limited to:the violation of any crime requiring: a
registration under California Penal Code Section 290, or-any violation of Penal Code CD
Sections.243.4, 261, 261.5, 264.1, 266, 266a through 266k', inclusive, 267, 286,.286.5, cd
288; 288.a, 311 through.311-A 0, inclusive, 314; 315, 316 or 647;
F, If, on one or more occasions within a twelve-month period, a person or personas. has S
:(have) been convicted of a felony or misdemeanor for 8h-offense set forth int subsection v
E of this section, which offense-has occurred as a result of or has originated from such t
.persons' activity on the premises or property on which the adult business is located, and :H
the person or persons were employees, contractors or agents of the adult business at u1
the time the offenses were committed;
G. If.the permittee or any employee.of the permittee has.knowingly allowed prostitution, or
solicitation for.prostitution, on the premises; E
H. The adult business has been operated in violation of any of the requirements of this
chapter and, (1) if the violation is of a continuous'nature, the business continues to be Q
.operated in violation of such provision:for more than ten days following the date written
notice of such violation is mailed or delivered to the permittee, or(2) if the violation is of
a noncontinuous nature two-:or.more additional violations of the same provision, or four
or more violations of any other of the provisions, of this chapter occur(regardless of
-whether notice of each individual violation is given to permittee within any twelve-month
period);
I• That the subject adult business has employed minors;
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J. That the conditional use permit for the:use has been suspended or revoked..
18.70.036 -Hearing on revocation of adult business permit.
Upon determi.niih..g that grounds for permit revocation exist, the community development director
shall-furnish written notice of the proposed.revocation to the:permittee. Such notice shall summari2e.
the principal.reasons for the proposed revocation; shall state that the permittee may-request.a
hearing within fifteen calendar'days of the postmarked date on the notice; and shall be delivered both
by-posting the notice at the location of the adult business and by sending the notice by certified mail, _
postage-prepaid., addressed to the permittee as that name and address-appear on the permit. Within
fifteen calendar days after the:later of the mailing or posting of the notice:the permittee may file a
IM
request for hearing with the community development1director.: If-the request for hearing is filed
within fifteen calendar days of the mailing or"posting of the notice referred to-herein,:the community H
development director shall transmit the request to-the-planning commission, and the hearing.shall be c
provided. 3
- m
Upon receipt of a written request for a hearing,the planning commission shall conduct a
hearing. The planning.commission-shall conduct a hearing within forty-five calendar days of the filing a
of such request by the:permittee. Notice of time and place of the.hearing shall-be given to the CO
permittee by personal service or via certified mail, postage prepaid, at least fifteen calendar days in
advance of the date set for the public hearing. At tlie:hearing, the permittee and the city shall be 1A
entitled to present relevant evidence, testify.under oath and call.witnesses:wh'o shall testify under. 2
oath. The planning commission.shall'not•be bound.by the.statutory rules.of evidence in the hearing, 3
except that.hearsay evidence may'not be the sole.:basis for the determination of the planning
commission. H
..v At the conclusion of-the hearing, the planning commission shall decide whether the.grounds for
revocation okistand shall subMI.t.a written report to:the community development director. Such written m
report shall contain a brief summary:of the evidence considered.and shall state findings, conclusions
and directives to the community development director regarding whether the permit is to be revoked. a
All such reports shall be filed With the city clerk and shall be public records. A copy of such report CD
shall be forwarded by certified mail, postage prepaid, to the permittee on the day it.is filed with the city
clerk. If the planning commission determines that any grounds-for revocation.exist,•as provided in c.
Section.18.7.0.634 of this chapter, the community development director, based upon the report of the c
planning commission or, if no hearing was.requested by the permittee, based upon the report of the v
city-staff, shall immediately revoke the adult business permit:Th:e decision of the planning =
w
commission shall be appealable-to the city council by the filing of a written. appeal with the city clerk x
within fifteen:calendar days following.the date of mailing,of such decision. A timely filed appeal shall w
vacate the decision of the planning commission. Any such-appeal shall be a de-novo public hearing:
held in the-manner and within the.time limitations set.forth 'in Section 18.70.012.The-decision of the E
city council upon appeal, or the decision of the planning commission:in the absence of a timely
appeal, shall be final and conclusive-.-
No application for an adult'business permit shall be accepted or processed for anyperson,
corporation, partnership, or member thereof, or any other entity for which an adult business permit
has been revoked within.the preceding three,-year period.
(Or-If ?fi3 v �yf_i;?rli: Oct
18.70.038 -Regulations nonexclusive.
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The regulations set forth in:this chapter are not intended to be exclusive and compliance
therewith shall not.excuse noncompliance with any other regulations pertaining to the operation of
adult businesses as adopted by the city council of the city.
18.70:040-Violations—Penalties.
Any firm, corporation or:person, whether as principal, agent, employee or otherwise, violating
or.causing the violation of any of the provisions of this chapter shall be guilty of.a misdemeanor, and w
any conviction thereof shall be punishable by a-fine of not more than one thousand dollars or by o
imprisonment for not more than'six months, or-by both such fine and imprisonment. Any violation of r
the provisions of this chapter shall constitute a separate offense for each and every day during which
such violation is committed or continued.
N
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(Chd t7I § 2�Jta!ii 71995) N
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18.70.042 -Public nuisance. 5
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In addition to the penalties set forth at Section 18.70.040, any adult business which is ••
operating in violation of this chapter or any provision thereof is-declared to constitute a public Co
nuisance and, as such, may be abated or enjoined from further operation.
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I'�- �1119I III �•� ����S,F.
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND: TERRACE
AMENDING TITLE 18 OF THE . GRAND TERRACE MUNICIPAL CODE BY
REPEALING AND REPLACING CHAPTER.18.76 ADULT BUSINESS REGULATIONS
IN ITS ENTIRETY
_ _ N
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THE .CITY COUNCIL OF THE CITY OF GRAND TERRACE DOES ORDAIN AS ig
FOLLOWS:. 7_1
SECTION 1: Findings: N
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A. Regulation of adult businesses have previously been established by the �
City-in the adoption of Ordinance No: 1.53, Chapter 18..70 (Adult Business Regulations) m
to be necessary for the protection of the. public welfare, due to the potential negative a
secondary. effects of adult.:businesses, including the following:. crime, especially -in the ..
form of illegal drugs and prostitution, :the deterioration of the city's retail trade; blight in o
neighborhoods.and the reduction of. property values; the. disintegration-of.the quality of
the city's neighborhoods and the city's commercial districts; risk to the city's quality .of
life; the increased threat-of the spread of sexually transmitted diseases; and potential w
interference with .:the peace, welfare and privacy of persons who patronize adult
businesses. The City Council reaffirms the need for the- special regulation of :such
businesses on the stated bases and as set forth in detail herein.
;A
B. The City Council, in-adopting this ordinance, takes legislative notice of the
existence and content of the:detailed studies and reports prepared,by other jurisdictions m .
relating .to the negative- social: and economic' secondary effects on persons and 3
properties surrounding established adult businesses,. including the following: study of a
Garden Grove, California (1:991); study of Tucson, Arizona (1-990); study of Seattle, Q
Washington: (1989); study of:Austin, Texas (1986); study of Oklahoma City, Oklahoma co
(1986); study of Indianapolis, Indiana'(1984); study of Houston, Texas (1983); study of a,
Beaumont, Texas (1-982); study of Minneapolis, Minnesota (1980);, study of .Phoenix, CL
Arizona (1979); study of Amarillo, Texas (1977:); study of Cleveland:, Ohio (1977); study
of Los Angeles, California (1977:); the recitals of Ordinance-Number 96-5 of the City of
Newport Beach, finding that crime rates are higher in -areas surround ing::adult-oriented
businesses than in other areas, that the existence of adult-oriented businesses which
permit public nudity has been shown in some cities to reduce the property values in o
those areas surrounding the adult-oriented businesses; the law enforcement experience N
of the City of.La. Habra and the City of Anaheim with the negative secondary effects of
sexually-oriented businesses that both do.and:do not serve alcohol, study of New-York, _
New York (1994); study of Newport News, Virginia .(1996); study of Times. Square, New
York City (1994); Report of the Attorney General's Working Group on the:Regulation of a
Sexually Oriented Businesses, Attorney General, State of Minnesota (19.89);. A
Methodological Critique of :the Linz-Paul Report: A Report to the San Diego City
Attorney's Office (2003); Sexually Oriented Businesses: An Insider's View — Testimony
of David Sherman before the Michigan House Committee on Ethics and Constitutional
Page 1 of 35
�Packef�P,g,.35�
Law (2000);-Closin' Time- Effective Regulation-.of Adult Businesses' Hours of Operation,
by Scott _Bergthold (2000.); Summaries of :Key Reports Concerning the- Negative
Secondary Effects of Sexually Oriented-Businesses, by Louis Comus III (2001); Peep
Show Establishments; Police Activity; Public Place and Time: A .Study of Seconday
Effects in :San Diego, California, by Daniel Linz et al. (2004); and Do Peep-shows
"Cause" Crime? A response to Linz, Paul; and Yao, by Richard McCleary et al. (2006)'. H
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C: The 'City Council is cognizant of the -specific danger from the sexually
transmitted disease AIDS, which is currently irreversible and can be fatal. The City
Council takes legislative notice that according to statistics provided by the Los Angeles
-County Public Health :Department in: its fpidemiologic.-Profile of HIV and AIDS in Los H
Angeles County 2009 ("Epidemiologic Profile of HIV and AIDS") -as of December 31, C
2009, a cumulative total of 76;383 persons with HIV/AIDS have :been reported in Los m
Angeles County. Of these, a cumulative total. of 56,091 persons have been diagnosed =
with AIDS,: of which 31,448 have died during this time period. There are :now over Q
44,450 reports of persons living with HIV in Los Angeles County;:of these approximately ..
24,600 living with AIDS. The City Council also takes legislative notice of the HIV N
Disease Surveillance Statistics 2010, County of Orange Health Care-Agency, Public
Health Services, HIV/AIDS Surveillance and :Monitoring Program ("HIV, Disease
Surveillance Report")., which-states that Orange County reports-that it ranks fifth highest o
'among California's..58 counties in number of AIDS cases:reported and fourth highest in
the number of HIV cases reported. The HIV Disease 'Surveillance Study reports: that
10,848 AIDS and HIV (non-AIDS) cases were reported in Orange County between'1981 H
and: 2010. Cumulatively, 4,255 persons have died of AIDS, and 6,591 are living with
AIDS/HIV in Orange County. In 2010, there were. 185 HIV and 76 AIDS cases 3
diagnosed.in Orange County: The City Council also takes legislative notice of the.HIV / m
AIDS Epidemiology Report- 2012 ("HIV/AIDS"Epidemiology Report") prepared by the
Public Health Services Division of the:County of San Diego, Health and Human .Services a
Agency. According to the HIV/AIDS Epidemiology Report, San Diego ,County has the ti
third largest number of HIV and AIDS cases in California. During-the reporting period of 10
1981- through December of 2011 14,805 AIDS cases were reported .throughout San ;
Diego County, and -approximately 50% of those AID. patients have died during theCL
reporting period. Between 1985 and December 2011, a total of 4;901 HIV cases were �i
reported, with 1,020 of the diagnosed cases occurring between 2009 through 2011'.
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D. The City Council is also concerned with preventing the spread of other c
sexually,transmitted diseases such as syphilis,.-gonorrhea, .chlam:ydia, and hepatitis :B. .o
The City Council takes legislative notice of the Sexually Transmitted Disease Morbidity N
Report, 2010 prepared .by the County-of.Los .Angeles Department,of Health Services, d
Public Health Sexually- Transmitted Disease'Program ("L.A. County STD .Morbidity s
Report"), and the Annual -Morbidity Report- and Special Studies :Report 2010, Los
.Angeles County Department of -Public .Health, Acute: Communicable Disease Control a
Program ('2010 Communicable Diseases-Morbidity Report"). The Los Angeles County
STD Morbidity Report indicates that between 2006, and 20:10,' 212,074 cases- of
chlamydia, 49,950 cases of gonorrhea,. and 14,546. cases of syphilis,. including 168
cases of congenital syphilis, were reported-for Los Angeles County residents,,while the
Page 2 of 35
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2010 Communicable Diseases Report reported 355 cases of hepatitis B were reported
between 2005 and 2010. The County of Orange Health Care Agency, 2006-2.010
Epidemiology and Assessment Cases and Case Rates of Reportable Diseases, reports
that between 2006.:and 2010, 1,560 cases of syphilis, 4,833 cases of gonorrhea 41,276
cases of chlamydia, and 94 cases of hepatitis B were reported. The City Council also
takes legislative notice of the County of San -Diego, .Health acid Human Services
Agency, HIV, STD and Hepatitis-Branch of Public Health Services Sexually Transmitted c
Diseases in.San Diego County, 2011 Data Slides, September-2012, and-the County of
San Diego, Health and Human Services Agency, Public Health Services, Reportable
Diseases and Conditions by Year of Report, 207-2011, which report that-83,605 cases
of Chlamydia, 13186 cases of gonorrhea, 1,749 cases of syphilis, and 4,773 .cases of y
hepatitis B were reported throughout San Diego County between 2006 and 2011. It c
should also be noted that the Los Angeles County 2009 Epidemiological Profile for m
HIV/AIDS states-that many sexually transmitted diseases,. included syphilis,. gonorrhea =
and Chlamydia can facilitate-the transmission of HIV and that the presence of a sexually
transmitted .disease is thought to increase the odds of HIV transmission three to five-
fold. o
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E. The City Council takes legislative notice of the findings and studies =
conducted -in this and other cities regarding increases in crime rates, decreases in C
property values and the blight of areas 'in which adult businesses are located, as such
studies are referenced in the following court :opinions: T.M. Smith v. County of Los m
ion eles,.2'11 -Cal. App. 3d 1:88, 259 Cal. Rptr. 2d 231 (1989) (discussing County-of Los
Angeles study); City of Renton v. Playtime Theatres, Inc., 475: U.S. 946 (1979)
(discussing City of Renton, Washington study); Movie &'Video World v. Board.of.County
Commissioners, 723 F. Supp. 695 (S.D. Fla. 1:989) (discussing County of Palm Beach, m
Florida study'.
a
F. The City Council also takes legislative notice of the facts recited in the n
cases of-Kev-, Inc. v. Kitsal .County, 793 F.2d 1053 (9th Cir. 1,986), and Colacurcio. v.
Kent, 163 F.3d 545 (9th Cir. 1998), regarding how live ,adult entertainment results in ;
secondary effects such as prostitution, -the sale and use_ of drugs, and' .other law
enforcement problems, as well as the experience of other cities and counties. in
adopting adult business regulations (see also Colacucio v. City of Kent, 529 U.S. 1053
(2000)). o
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F. - The City Council: finds that the above studies.and,_reports are relevant:to 0
the problems addressed by the City.in enacting this ordinance to regulate-the adverse N
secondary effects of adult businesses, and- more specifically finds that these studies
and reports provide convincing evidence that: E
1: Adult businesses are linked to increases in the crime rates in those a
areas:in which th:ey.are:located and in.surrounding areas;
Page 3 of 35
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2. Both the proximity of adult businesses to sensitive land uses and
the concentration of adult businesses.tend to result in blight and deterioration of
the areas in which they are located;
3. The proximity and concentration of adult businesses adjacent to
residential, recreational, religious, and education.uses, as well.as the.proximity to
other adult businesses can have adverse secondary effects on local businesses c
and residences; and
J 4..- There is substantial evidence than an increase in crime tends to
accompany, concentrate around, and be aggravated by adult. businesses,
including but not.limited:to an increase in the crimes of narcotics distribution and c
use, prostitution, pandering, and violence against persons and property: The
studies from other cities establish convincing evidence that. adult businesses m
which are not regulated as to permissible locations often have a deleterious a
effect.on nearby businesses in residential areas, causing, among other adverse
secondary effects, an increase in crime and a decrease in property values. N
G. The locational: requirements established by this ordinance do not
unreasonably restrict the establishment or operation of constitutionally protected adult C
businesses, and a. sufficient number :of:appropriate locations for adult businesses are 3
provided in this ordinance, given the size:and :population of the City of Grand Terrace, d
the wide availability of alternative adult businesses near Grand Terrace and within a W
reasonable distance therefrom, and.the:.access to and contemporary use of.the internet
in place customer patronizing of physical locations of adult businesses.. •�,
m
H. The City Council finds that the separation and locational requirements 73
herein afford a reasonable opportunity for adult businesses to locate in the City of a
Grand., Terrace, taking into account all facts and circumstances relating -to adult ti
businesses and the demand for such uses within the City and. surrounding :areas, CO
including the following:
a
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1. The City's ordinance will: be evaluated on the basis of whether it 0
"allows for reasonable alternative avenues of communication." City.of Renton v. .01
Playtime Theatres, 475 U.S. 41, 53 (1986); C
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2. The 11th Circuit Federal:Court of Appeals has; for instance,. found -0
in Boss Capital, Inc. v. City-of Cassel berry, 187 F:3d 1251 (11th Cir: 1999), that N
three adult business sites was sufficient for a town with a population of 24,000;
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3. The 'City of Grand Terrace has had no applications for adult
business establishments within the City at any time:in the near;distant past; a
4. Numerous.adult businesses.are located within 22 miles -of Grand
Terrace; and are easily accessible to residents of' the City; and:
Page 4 of 35
Packef:Pg.38' -
5. As set forth below, there is significant access to adult materials and
entertainment via the internet, mail-order, and other means which do not require
a physical business location.
L' The City of Grand. Terrace had a, population of 12,040 at the 2010 United
States Census,and the total size of the City is 3.6-square-miles. H
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J. The City Council recognizes.that residents in the City,must generally travel is
to entertainment in the area; such as movie theaters, of which there are none within..the
City. Specifically, residents likely travel 9.5 miles to theaters in Redlands, for instance,
22 miles to Rancho:CucamongaNictoria Gardens, or 13..miles to Riverside. The closest N
theater is,in the City of Riverside, 5.8 miles from the City of Grand Terrace. c
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K. The City Council further recognizes that, as to adult businesses in m
particular,-there are 1'6 adult businesses within 22 miles of the City of Grand Terrace. a
Six of these businesses are within 5.8 miles and two are within .two miles of the City.
The adult businesses in close proximity to the City of Grand Terrace include the o
following:
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1.. Live entertainment establishments: Club- 215 at 2680 S. La 0
Cadena-,.Colton; Fantasy Club. at 1091 S. La. Cadena, Colton;: Flesh Club at
100 W. Hospitality Lane, San Bernardino; Deja vu at 1.331 W. Colton Ave,
Redlands; Spearmint Rhino Club at 31ZS. Riverside Ave;. Rialto; Villa Theatre at
1420 W. Holt-.Blvd. Ontario; Eyefull Adult. Entertainment at 5282 W. Mission '
Blvd., Ontario;- and Tropical Lei:at 2121 W. Foothill Blvd., Upland;:and
3
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2. Retail stores, including books, novelites- and/or videos: "For 3
Discriminating. Adults (SB- Books)" at 304 South E St., San Bernardino; Lotions a
and Lace at 196 Inland Center, San Bernardino; "Le Sex Shoppe (Pleasure CD
Shop)" at 304 W: Highland Ave., San:-Bernardino; "Bear Facts Adult Bookstore" Co
at 1434 E. Baseline, San Bernardino; The Adult'.Shop at 736 Tennessee St.,
.Redlands, Happy Time Adult'Bookstore at 13834 Old 215 Frontage Rd., Moreno M
Valley;- Baseline Books at 25557 Baseline St., Highland; "Jackman Adult
Bookstore" at 27409' 5th St., Highland; Romantix at 3945 Market St., Riverside;
Lotions and Lace at 10175 Magnolia Ave., Riverside; A Touch. of'Romance at a
10281 Magnolia Ave., 'Riverside; Lotions & Lace at 9197 Central -Avenue,
Montclair; Toy Box at 1999 W. Arrow Rte., Upland; and "Adult Book and 'Video- o
Mustang" at 961 N. Central Ave.; Upland. C4
L.. , Further, the internet is a judicially recognized alternative channel. :of
communication-and the City Council takes legislative notice of judicial opinions making
such findings, as well as the fact.that.adult businesses:-often no longer need a physical a
location within a community to be readily available via the internet, or even by mail-
order products to residents and customers within a community.-(see Anheuser-Busch, -
Inc:-v. Schmoke, 101 F.3d 325, 329 (4th Cir. 1996), cerL denied 520 U.S. 1:204 (1997)
[Internet is one available channel of communication]; Reno v: American Civil Liberties
Page 5 of 35
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gbjon, 521 U.S. 844, 117 S.Ct. 2329, 138 L.Ed.2d 874 (1997) [the principle channel
through -Which many Americans now transmit and receive sexually explicit
communication. is the- Internet]; United States v. Hockings, 129 F.3d 10.69 (9th Cir.
1997); United Statos.y. Thomas, 74 F..3d .701 (6th Cir. 1996), cert. denied 519 U.S. 820
[recognizing the Internet as 'a medium for transmission of sexually explicit material in the
context Of'obscenity prosecutions]) .
O
M. It is not the intent of -the. City Council in adopting this ordinance to
suppress any-activities protected by the First Amendment, but rather to enact a content-
neutral ordinance which addresses the secondary effects that adult businesses may
have on the city. in developing this ordinance, the City -council has been mindful of
legal principles relating to regulation of adult- -businesses and does not intend: to
suppress or infringe upon any,expressive activities.protected by the First Amendments
of "the United - States and California Constitutions,. but instead desires to enact
'reasonable time, place, and manner regulations that address the adverse secondary
effects of:adult businesses: The City Council has considered-decisions of the United
co
States.Supreme Court regarding local regulation Of adult businesses, including but not cmM
limited to the following: Young v. American Mini Theaters, nc., 427 U.S.-50:(1976); Cl
of Renton v. Playtime Theaters; 475 U.S. 41 (1-:986); FW PBS, Inc. v. City of Dallas 493
U.S.-215-(1990); Barnes V. Glen Theatre, 501 U'.S-.-560 (1-991)'-City of Erie v. P808 A.M.. 0
C.'Kandyland"), 529 UsS. 277 (2000): The City Council has also considered United
States Ninth Circuit Court of Appeals decisions and decisions in Other jurisdictions,
including;but.not limitedto.the:following: City:of National City. .y.,Wiener 3 Cal. 4th:882,
12 Cal. Rptr. 2d 701, 838 P.2d 223 (1992), cert. denied 510 U.S. 824:(1993); People v,
-Superior Court-(Ludeto 49 Cal. 3d 14, 259 Cal. Rptr. 74.0, 774 P.2d 769 (1:089); City of
Valleio v..Adult Books, 167 Cal. App. 3d 116.5, 213 Cal. Rptr. 143 (1985), ce'rt. -denied
475 U.S. 4064 (1986); Lakeland Lounge.V. City of Jacksonville', '973 F.2d 1255 (5th Cir.
1:992), cert. denied 507 U.S. 1030 (1:993); Hang Qnjnc. V-. Arlington-.,.65 F.3d 1248 (5th
Mr. 1-995)1 International Eateries v. 8roward County, 941 F.2d- 1157 (11th Cir. 1991),
cert. denied 503 U.S. 920 ('1992); Lady J. Lingerie v. City of Jacksonville, 973 F;,Supp. co
1428 (M.D. Fla. 1997); Lady J. Lingerie v. City of Jacksonville, 176 F.3d 1358 (1 1th Cir.
1999) ("[a]mple evidence . . . supports the . . . finding that illegal and unhealthy-activities CL
M
take place in small rooms at adult entertainment establishments."); Movie & Video
World, Inc. v. Palm Beach 'County, 723 F. Supp.. 695 (S.D. Fla. -1989); Colacurcicy v.
Kent, 163 F.3d 545 (9th Cir. 1998), 529 U.S. 1053 (2000); Tily B-. v. City of Newport
8-each, 69. Cal. App. 4th 1, 81 Cal. R.ptr. 2d 6 (1998); .Top*anga: Press,..et.al. v. City o
"E
Los Angeles; 989 F.2d 152441993); Kevjnb.y: .Kitsap County,703 F.2d 1053 (9th.Cir. 0
1986). C4
4j
N. ' The City Council recognizes that adult devices 0..e. adult novelties and/or E
adult related products) such as dildos,. fur-lined handcuffs, leather whips, anal beads,
-and.-devices that.are physical representations of human genital organs,.'are:not speech
and enjoy no First Amendment protections. Ford v. State of Texas, 753 S.W..2d:451,
l.
452-453:( 988)- Sewell.v. State of Georgia, 283:8.E.2d 187, 188- 189 (1977); Chamblee
Visuals, LLC v. City,of-Chamblee, 506 S..E.2d 113,-11-5 (Ga. 1998); and.Red Bluff Drive-
in-, Inc. v. Vance 648:172d 1020-(5th Cir. 1981.).
Page 6 of 35
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O. -The City Council finds that locational criteria (over--concentration
regulations), alone, do-not adequately protect the health, safety, and general welfare of
the citizens of the:City-of Grand'Terrace, and thus certain requirements with respect to
the ownership and operation of adult businesses are in the public interes.
P. The City.Council finds the following with respect to live performers at adult c
businesses:
�1. Evidence indicates.that some dancers, models and other persons
who publicly .perform "specified. sexual activities", or publicly display "specified �.
anatomical parts" in adult businesses-(hereinafter collectively referred to as "adult c
business performers") have been found to engage in sexual activities with m
patrons:of adult businesses on--the premises of such adult businesses; =
2. Evidence demonstrates that adult business: performers have been a
found to offer and provide private shows to :patrons who, for a price, are o
permitted to,observe and participate with the performers in live sex shows;
' - H
3. Evidence indicates that adult'business performers have been found c
to engage in:acts of prostitution with patrons of adult business establishments; 3
d
4. Evidence :indicates that fully enclosed-booths, individual viewing
areas, and other small rooms whose interiors cannot be seen from public areas
-N-
within an adult-'business establishment are used as a location for engaging in
unlawful sexual activity; m
5. Evidence indicates that adult .businesses are frequently used for a
unlawful sexual activities, including prostitution and sexual liaisons of a casual ti
nature, and for the exchange and use-of illegal drugs;:and. CO
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6. As a- result of the above, and the increase in incidents of AIDS and °
Hepatitis B and C, all of which are sexually transmitted diseases, the city has:a
substantial interest in adopting. regulations which will reduce, to the greatest
extent possible, the occurrence -of prostitution: and sex acts associated with
specific health risks at adult businesses..
0
Q. The City Council finds :that enclosed or :concealed booths and dimly-lit N
areas within adult businesses greatly increase the potential for misuse of the.premises, 1
including potential harm:to patrons and adult business performers, and unlawful conduct E
of. a-type which facilitates the transmission of disease.. Requirements that all indoor
areas be open to. view by management of adult businesses at all times, and that a
adequate lighting be provided .are necessary in order to reduce the opportunity for, and
therefore,. the incidence of,. illegal conduct :and:-harm to patrons and adult business
performers within adult businesses, and to facilitate the inspection of the interior of the
premises by law enforcement personnel. The Council relies on- the. opinions of courts
-Page 7 of 35
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upholding such requirements, including out not limited to Fantasyland Video, Inc. V.
County of San Diego, 50.5 F.3d 996, 999-100.0 (9th Cir. 2007).
R. The .City Council .finds that a permitting scheme is a :legitimate and
reasonable means of accountability to ensure that operators of adult businesses comply
with reasonable regulations and to ensure that operators do not knowingly.allow their
establishments to be:used as places of-illegal sexual activity or solicitation, and further c
finds that these methods of regulation constitute a legitimate exercise of zoning,
licensing and police power authority to protect .the quality of life .in the Grand Terrace
community and-minimize the adverse secondary effects:which naturally accompany the
Operation of adult businesses. H
d
S. The City Council recognizes the possible harmful effects on children and m
minors exposed to the: effects of.adult businesses and the need and desire of children �.
and minors to stay away from and avoid such businesses, which causes children to be .a
fearful and cautious when walking through or visiting the immediate neighborhood.of
such businesses; desire to minimize and control adverse secondary. side effects co
associated with the operation of adult-businesses; preserve the quality-of life, preserve
property values and the character of surrounding neighborhoods and businesses; and c
deter the spread of urban blight.
T. The City Council specifically takes.note of the .possible harmful effects on
children :and minors exposed: to the effects. of adult businesses or adult-
.oriented
material, and recognizes the need to regulate adult businesses and/or materials in order d
to minimize and/or eliminate such exposure. The City Council further acknowledges the y
provisions of California Penal Code Sections 313, et seq., and Section 313:1(d), :in m
particular, authorize-local governments to,regulate:matter that is harmful to minors, and
that courts have upheld a city's compelling interest in protecting minors:from sexually a
explicitly, adult-oriented materials. Crawford v. Lungren, 96 F.3d 380 (9th Cir 1996),
cert. denied-520 U.S. 1117 (1997) (state statute-balanced competing interests of access CO
to adult-oriented publications with public ,interest in shielding minors from influence of ;
such materials by limiting their access to such publications); .Berry v. 'City of Santa m
Barbara, 40 Cal. App. 4th 1-075 (1995) (same).
U. The City Council finds that requiring adult businesses: to install and
maintain video surveillance equipment at the business establishment is an appropriate .a
restrictioh:on such businesses, necessary to further the important governmental interest o
in: deterring crime or illegal activity at such businesses, including but not limited to N
possible prostitution, altercations between patrons,- thefts, burglaries, and drug d
transactions. The City. Council further finds that 'the video _surveillance provisions E
enacted herein are specific as to the exact type of equipment to be installed, as well as
to the manner of installation, such that the provisions ate not vague'and are necessary . a
to ensure usable quality recordings. In addition, these provisions, regarding the
maintenance of the surveillance systems and the:installation of specific equipment, such
as monitor size, type of video recorder, and type of video camera, are the minimum
necessary.to allow police investigation of:crimes committed at adult businesses.
Page 8 of 35
Packet�Pg::42 r
i
V. The City Council :has also determined that a-closing hours requirement
promotes the reduction of deleterious second -businesses, and the
Council reasonably relies on prior court decisions on, the need 'for closing hours,
including Mitchell v. Commission on Adult Entertainment, 10-F.3d 123, 131-139 (3d Cit.
1993); Lady:J. Lingerie,. Inc..v. City of Jacksonville, 973 F. Supp.. 1428 (M.D. Fla.. 19917)
and .Lady J. Lingerie; Inc. v. City of Jacksonville, 176 F.3d_ 1358 (11.th Cit. 1999); c
Fantasvland Video Inc. v. County of 'San Diego; 505 F.3d 996, 999-1000 .(9th- Cit.
2007);._Deia Vu of Cincinnati;.LLC v. Union Twp. Bd. of Trs., 411 F.3d 777, 789-792 (6th
Cit. 2005)', `Richland -Booka4 t, Inc. v. Nichols, 137 F.3d 435, 440-441 (6th Cir. 1998);
City of Colorado Springs v. 2354, Inc., 896 P.2d 272 (Co. 1995); Center:forfair Public N
Policy v. Maricopa County ("Maricopa"), 336 F.3d 1153 (9th Cir: 2003); DiMa Corp...v.
Town of Hallie, 185 F.3d 823 (7th Cit. 1999); Richland Bookmart, Inc. v. Nichols, 137 m
F.3d 435 (6th Cir. 1:998); National Amusements, Inc. v..Town of Dedham:, 43 F.3d 731 =
(1st Cit. 1995); Mitchell v. Commission on Adult Entertainment,. 10 F.3d 123 (3rd Cit. Q
1993);.Star Satellite v. City of Biloxi, 779 F.2d 1:074 (5th Cit. 1986). ,.
o
W. The City Council recognizes that this ordinance is necessary to revise the
permit application process for adult businesses to bring the city's-ordinance current with
existing case law and to further reduce and control the negative secondary effects of s
adult businesses. This is in keeping with evolving case law and is part of the city's 3
continuing efforts to-,balance the First Amendment rights of adult business operators,
and patrons with the city's substantial :governmental interest in reducing adverse
secondary effects relating'to such businesses. The use:of a permit process is essential N
to eliminate the adverse secondary -effects of adult businesses by allowing the city to
monitor and regulate the location and concentration of such establishments, and, intact, m
is the least restrictive means for the City of Grand Terrace to do so, constitutionally and
effectively. a
0
1�
X. The City Council finds that preventing the direct exchange of .money .00
between adult'business performers and patrons will serve to reduce the likelihood of a
drug and sex transactions occurring in adult businesses. Requiring separation betweenCL
adult business performers and patrons also reduces the likelihood that such persons will
negotiate narcotics-sales and/or transact sexual favors within the adult business-.
c
M
Y. The City Council believes that .prohibiting .physical contact between S
performers and patrons at an adult use business, requiring separate entrances for 0
performers from those used for patrons, requiring separate restrooms. for opposite N
sexes, prohibiting performers from soliciting payment of gratuities from patrons, and
prohibiting the direct payment of gratuities to performers by patrons are a reasonable r
and effective means of addressing the legitimate governmental-'interests of preventing
prostitution, the spread of sexually transmitted diseases.,, and drug transactions. a
Z. The City Councit recognizes that a:number of courts of law have upheld
distance limitations: between performers and patrons, prohibitions against physical
contact between performers and patrons, and direct payment and receipt of gratuities
Page 9 of 35
'Packet;�Pg�;43'
between performers and .patrons at adult business establishments that provide live
entertainment, including; the following: Key, Inc. v. Kitsap County-, 793 F.2d 1091 (.9th
Cir. 1986); DLS, Inc. v. City of Chattanooga, 894 F. Supp. 1140 (E-D. Tenn. 1995);
Parker v. Whitfield County, 463 S:E.2d 116 (Ga. 1995:); Hang On,.. Inc.. v. City of
Arlington, 65 F.3d 1248 (5th Cir. 1996); Colacurcio v. Kent, 163 F.3d 545 (9th Or.
1998), .529 U.S. 1053 .(200.0); -Tile B. v.. City..of Newport .Beach, 69 Cal. App. 4th 1 H
(1998); Entertainment Prods., Inc. v. Shelby County, 588 F.3d 372, 394 (.6th Cir. 2009); c
and 729, Inc. v. Kenton .County Fiscal:Court, 515.-17.3d 485, 493 (6th.Cir. 2008).,
AA. Thee City -Council' takes notice of the fact that California Penal Section
3.18.5 and 318.6 acknowledge the authority of local governmental agencies to regulate y
topless and bottomless waiters, waitresses, and entertainers, or r exhibitions in public c
places. m
BB. In developing this ordinance.,.the.City Council is mindful of legal principles a
relating to the:regulation.of.adult businesses. The City Council has considered:decisions ..
of the United States- Supreme Court regarding local regulation of adult businesses, o
including but not limited to the following:: Gammoh v..City of La Habra, :395 F.3d 1114
(9th Cir. 2005), amended 402 F.3d 875, cent. denied 126 S.Ct. 3.74; Dream.Palace..v.
County of IVlaricopa,. 384 F.3d 990 (9th Cir. 2004); World Wide Video. v. City 'of
Spokane, 368-F.3d,1:186 (9th Cir. 2004); Diamond v. City of Taft, 215 F.3d 1052 (9th
Cir. 2000),. cert. denied .531 U:S. 1072 (2001); Isbell v. -City of San'Diego, 258 F.3d d
1108 (9th Cir. 2001); Youhg:V. City of Simi Valley, 216 F.3d 807 :(9th Cir. 2000:), cert.
denied 531 U.S. 1104 (2001); Lim v. City of Long Beach, 217 F.3d 1050 (9th Cir. 2000), d
cert, denied 121 S':Ct, 1189 (2001),-'Baby Tam & Co:; Inc: v. City of Las-Vegas ("Baby
Tam 1"), 154 F.3d 1097 (9th Cir. 1998); Baby Tam. & Co., Inc: v. City of Las Vegas m'
("Baby Tam tl"), 199 F.3d 1111 �(9.th Cir. 2000); Baby Tam & Co., lnc..v.. City of 'Las
Vegas ("Baby Tam III"), 247 F.3d 1003 (9th Cir. 2001);.4805 Convoy: Inc: v. City of San a
Diego, 183 F.3d 1108 (9th Cir. 1999); Spokane Arcade, Inc..v. City of Spokane; 75 F.3d ti
663 (9th Cir. 1996); Department of Alcoholic-Beverage Control.v..Alcoholic Beverage
Control Appeals Board of California ("Vicary"), 99 C81.App.4th �880 (2002); G.M.
Enterprises v. Town of St. Joseph, 35.0 F.3d 631 (7th Cir. 2003); SOB, Inc..v. County ofCL
Benton, 31.7 F.3d 856 (8th Cir: 2003); N.W. Enterprises, Inc. v. City of Houston, 372
F.3d 333 (5th .Cir. 20.04); and N.W. Enterprises, Inc. v. City of Houston, 352- F.3d,162
(5th-Cir. 2003); Ellwest Stereo Theatres, Inc. v. Wenner, 681 F.2d/1243 (9th Cir. 1982) ' o
(including its finding that-there is no constitutional right to unobserved masturbation in a
public place); Deluxe Theater.& Bookstore, Inc..v. City of San, Diego, 175 Cal. App 3d o
98Q (1985) (finding that the right to privacy guaranteed by the California Constitution N
does not protect,the.right to unobserved masturbation:in.a public place); :County of San
Diego v: 1.560 N. Magnolia Ave., 2009 Cal. App. .Unpub. LEXIS 1198, 27-28 (Cal..App. t
4th Dist. 2009); Heideman v. S. Salt Lake City, 165'Fed. Appx. 627, 633 (10th Cir.
2006). a
CC. The City Council-finds that a:permit:appellant is afforded judicial review of
a decision relating' to an adult business permit pursuant to California Code of Civil
Procedure Sections.1094.5 and 1-094.6 and that such review is, by experience.,.prompt.
Page 10 of 35
--Packet Pg:~44
DD. It is not the intent of the City Council in enacting this ordinance, or any
provision thereof, to .condone or legitimize the distribution of obscene material, and the
Council recognizes that state law .prohibits the distribution of obscene materials and
expects and encourages law enforcement ofi'cials to enforce state obscenity statutes
against such illegal activities:in the City of Grand Terrace. I. ..
c
0
EE. In prohibiting public nudity in.adult businesses, .the City Council does not '�
intend to :proscribe the communication of .erotic-messages or any other communicative
element or activity, but rattier only to prevent- or reduce the secondary impacts
associated with such,public nudity. N
d
FF.. The City Council also finds, as a -wholly independent basis, that it has a V
s.ubstantial public interest in preserving societal order and morality, .and that such m
interest is furthered by a prohibition on public nudity.
a
GG. The City Council declares that the restrictions imposed,pursuant to this o
ordinance are part :of..a regulatory licensing process, and do not constitute a criminal
offense. Notwithstanding any other provisions of the Grand Terrace Municipal Code,
the City does not impose a- criminal penalty for violations of -the provisions of -this
ordinance related to sexual conduct or activities. The City Council adopts these
limitations only as:a condition of issuance. and-maintenance of an adult business permit
issued pursuant to the City's:Code.
H
HH. Nothing in this ordinance is intended to authorize, legalize,. or permit the
establishment, operation, or maintenance of any business, building, or use which m
violates any City ord_inance or any statute 'of the State of California regarding public 3
nuisances, unlawful or indecent exposure, sexual conduct; lewdness:, obscene or a
harmful matter or the exhibition or public display thereof. CD
co
ll. As provided in the severability clause of this ordinance, the City Council
finds that in the event of invalidation .of,the permitting. requirements in .this ordinance, �
any adult business which operates in the city should nonetheless be subject to the
remaining requirements of this ordinance, including but not limited to the-locatioiial-and
operational requirements, and the revocation and violation provisions,. each of which
would have been adopted independent of the permit issuance provisions.
0
JJ. On June 7, 2012 the City Council adopted an interim urgency ordinance N
declaring and imposing a forty-five (45).day Citywide moratorium on the establishment41
or expansion of adult businesses, and extended: the interim urgency ordinance .by an s
additional'ten (10) months and fifteen .(15) days on July 10, 2012.
" a
KK. On April 23, 2013, the City Council adopted an interim urgency ordinance
extending the City-wide moratorium on the establishment or expansion of adult
businesses, by an additional twelve (1.2) months.
Page 11 of 35
Packet Pg �45 ,
SECTION 2. On June 6, 2013, the Planning Commission conducted a duly noticed
public hearing at the.Grand Terrace Council Chambers located at 22795 Barton Road,
Grand Terrace,. California 92313:and voted'4-0 recommending City Council approval of
new Chapter 18.70:entitled "Adult Business Regulations.'.
SECTION..3. On July .23,. 2013, the City Council conducted: a duly noticed public- ._
hearing on the proposed Ordinance at the Grand Terrace Council Chambers located at c
22795 Barton Road, Grand Terrace, California 92313; and conducted second reading
on August 13; 2013.
SECTION 4. The .City Council hereby finds that this- activity is not :subject to the N
California -Environmental Quality Act (CEQA) if the activity will not result in a direct or
reasonably ':foreseeable indirect physical change in the: environment (Section
1.5061(c)(2)); and where it can be seen with certainty that there is no possibility that the m
activity in question -may have a significant effect on the environment (Section a
16061(b)(3)). The Notice of:Exemption has been.reviewed and :considered and reflects ..
the independent judgment of the-City Council, and is hereby adopted: co
SECTIONS; The City. Council finds that the.proposed zoning amendment will. not.be �
detrimental ,to the health, safety, morals, comfort or .general- welfare of the persons - 0
residing or working::within the neighborhood of the proposed amendment-:or injurious to 3
property or improvements in the neighborhood or within the 'City because the d
regulations are intended to place reasonable standards on adult businesses for the y
purpose of minimizing potential adverse secondary impacts to surrounding uses, such d
as crime; the deterioration of the city's retail trade; blight in neighborhoods and the H
reduction of.property values; the disintegration of the quality of the.city's neighborhoods m'
and the city's-commercial districts; and risks to public health and safety. 3
- a
SECTION 6. The City Council also finds that the proposed zoning'amendment is ti
consistent with the latest adopted General Plan,. such as Land Use Policies 2.3.5 and
2:4.4 to implement measures and give special consideration to buffering. to reduce
potential land use incompatibility between commercially and industrially designated
areas and all other plan areas;and Housing Policy 8.3.9 to prevent the encroachment of
incompatible uses into established residential neighborhoods.
c
m
SECTION 7. The City Council hereby repeals in its entirety Ordinance No. 268, an
interim urgency ordinance. extending for twelve (12) months a :citywide moratorium, o`.
adopted pursuant to Government Code Section 65858, temporarily prohibiting the N
41
establishment or expansion of adult businesses.
E
SECTION 8. The City Council hereby repeals -and replaces in its entirety Chapter
1.8.70 of Title 1.8 of:the.Grand Terrace,Municipal Code as follows: Q
"Chapter 18.70 Adult Business Regulations
Sections
18.70..010 Purpose
Page 12 of 35
Packet"Pg-40:
�4 W
18.10.020 Definitions `
18.70.030 Conditional Use Permit Required
18.70.040 Adult Business'Permitted
1.8.70.050 Location.Requirements and Measurement of Distances
18.70.060 Determination of-Use
18.70.070 Development Standards ..
18.70.080 General Operating Standards c
18.70.090 Regulation of Adult Arcades and Adult Booth/Individual Viewing Area
18.70.100- Regulation.of Adult Live Entertainment ,3
1&70.110 Regulation of-Adult Motion Picture Theater
1:8.10.120 Regulation of Adult Modeling and Adult Photography Studios H
18.70.130 Regulation of Adult Retail Store c
18.70.140 Inspections .3
1.8.70.150 Regulations non-exclusive and nuisance declared 00
M
Section'18.70.010 Purpose a
co
It is, the`purpose and intent of this chapter to regulate the operations of adult
N
businesses, which tend to have judicially recognized adverse secondary effects on-.the
community, including, but- not: limited to, increases in crime, in ;the vicinity of adult or-
businesses; decreases in property values in the vicinity of adult businesses; increases o
in vacancies in residential and -commercial areas in the vicinity of adult businesses;
interference with residential ;property owners' enjoyment of their properties when.=such
properties are located in the vicinity of adult businesses as a result of increases in n
crime, litter, noise, and vandalism; and the deterioration of neighborhoods. Special
regulation of these businesses is necessary to prevent these adverse secondary effects m
and the blighting or degradation of the neighborhoods in the vicinity of adult businesses
while at the same time protecting the First Amendment rights associated with such a
businesses. It is, therefore, the •purpose. of this Chapter to establish reasonable
standards for the permitting.and regulating of adult businesses. o;
Section 18.70.020 Definitions a
A. "Adult arcade" shall mean a business ,establishment to which the: public is
permitted or invited and where coin, card or slug operated or electronically,
electrically or mechanically controlled devices,--still or motion picture machines,
projectors, videos, holograms, virtual reality devices or :other image-producing
devices are maintained :to show images on a regular or-substantial basis, where c
the images so-displayed are distinguished or characterized by an emphasis on N
41
matter depicting or describing "specified sexual. .activities" or "specified
anatomical areas." Such devices shall be referred to-as "adult arcade devices."
B. "Adult booth/Individual viewing area" shall mean a partitioned or partially a
enclosed portion of an adult business used for any of the following purposes.-
1. Where a live or taped performance is. presented or viewed, where the
performances and/or images displayed or presented are distinguished or
Page 13 of 35
;Packef:jPg,47
characterized by their emphasis on matter depicting, describing, or
relating to "specified sexual activities" or"specified anatomical areas;" or
2. Where "adult arcade devices" are located.,
C. "Adult business"shall mean:
N
C
1. A, business establishment :or concern that as a regular and: substantial °
course of conduct sells or distributes "Adult Oriented Material" or "sexually
oriented merchandise", or which offers to - its patrons products,
merchandise, services or entertainment characterized by--an emphasis on N
matters depicting, describing, or relating to "specified sexual, activities" or c
"specified anatomical parts," but, not including those uses or activities
which are preempted by state law; m
2. Any business establishment or concern which as a regular and substantial a
:course of conduct performs or operates as an .adult bookstore, :adultco
theater, adult motion picture arcade, adult model studio,. adult arcade,
adult retail store, adult cabaret, adult motel or hotel, adult
modeling/photography studio, adult motion picture theater, sex. club, c
sexual encounter center; any business providing adult live entertainment,. '
et cetera;:or
aM
-3. Signs, advertisements or an establishment name including verbal: -or 44
H
pictorial allusions to-sexual stimulation or gratification or by references to
"adult;" "'XXX" or similar terms, shall be considered evidence that the
establishment holds itself out.to the public as a sexually oriented business. 0°
D. "Adult cabaret" shall mean a business establishment (whether or not serving. a
alcoholic beverages) that as a regular and substantial course of conduct features ti
ca
"adult live entertainment;" persons who appear in a state of nudity or semi:--nude
condition, or which holds itself out to the public where adult live entertainment is a
available. c
E. "Adult cabaret dancer" shall mean any person who is an employee- or
independent contractor of an "adult cabaret`or "adult business" and who, with or c
without any compensation or other form of consideration, performs as a sexually .9
oriented dancer, exotic, dancer, stripper, go-go dancer or similar dancer Whose o
performance on a regular and substantial basis focuses on or emphasizes the N
adult cabaret dancer's breasts, genitals, and/or buttocks, but does :not involve i
exposure of "specified anatomical areas" or depicting or engaging in "specified s
sexual activities. "Adult cabaret dancer does not.include'a patron..
F. 'Adult -hotel/motel" shall mean a "hotel or "motel" (as defined 'in the Zoning
a
Code) :that is used for .presenting, on .a regular and substantial basis images
through closed circuit television, cable television, still or motion picture machines,
projectors, videos, holograms, virtual reality .de"vices or other image-producing
devices that are distinguished or characterized by the emphasis on matter
Page 14 of 35
acket=Pg;48
, :
depicting or describing or relating to "specified sexual activities or "specified
anatomical areas"; and/or' rents, leases.or lets any room for less than a six hour
period, or rents, leases or lets any single room more-than twice in any twenty four
hour period. -
G. "Adult live entertainment" shall mean any physical human: body activity, whether
performed,or engaged in, alone or with other persons, including but not limited to c
singing, walking, speaking, dancing, acting, posing, simulating, wrestling or
pantomiming, in which: (1) the performer or adult cabaret dancer exposes to ?<<
public view, without opaque covering, "specified anatomical areas";-and/or (2) the
performance or physical human body activity that depicts, describes,-or relates to N
"Specified sexual activities" whether or not the specified- anatomical areas are _
covered. 'N
_ m
H. "Adult modeling/photography:siudio"shall mean a business establishment where
a live :person who appears seminude, in a state of nudity, or who displays a
specified anatomical areas is provided to be observed, sketched, drawn, .00
photographed,, filmed, painted, sculpted, or otherwise similarly depicted by other
persons, whether or not paying for such services. "Adult modeling studio" does y
not include schools maintained pursuant to standards set by the Board of o
Education of :the State of California, or that of an individual artist studio
established solely for conduct of the artist.
I.. "Adult motion picture theater" shall mean a business establishment, with or H
without a stage or proscenium, where, on a regular and substantial: basis and for
any form of consideration, material is presented through films, motion pictures, a'o
video cassettes, slides, laser disks, digital video disks, holograms, virtual reality w
devices, or similar electronically-generated reproductions that is characterized by a
the depiction or description :of "specified :sexual activities" :or "specified o
-anatomical areas." :�
J. "Adult oriented materiaf' shall mean accessories, paraphernalia, books, a
magazines, laser disks,. compact discs, digital video disks, photographs, prints,
drawings, paintings, moion pictures, pamphlets, videos,..slides, tapes, holograms d�
or electronically generated images or devices including computer software, or =
any combination thereof that is distinguished or characterized by its emphasis on
matter depicting, describing or relating to "specified sexual activities" or o
"specified anatomical areas." "Adult oriented material" shall include "sexually N
oriented.merchandise."
C
d
K. "Adult retail store"shall "mean a business establishment having as a regular and r
substantial portion of its stock in trade, "adult oriented material" for sale or rent.
Includes a bookstore, video store or store selling adult novelty;items.,
L. "Establishment of an adult business" shall mean any of the following:
Page 15 of 35
Packet Pg 49.
f.- -
1.. The opening or commencement of any "adult business" -(as defined
above):as a new!business;
2. The -conversion of an existing business,. whether or not an "adult
business," to any"adult:business',"
3. The addition of any"adult business" to any other existing "adultbusiness;" c
4.. The relocation of any"adult business;" or
d
5. Physical changes that .expand the square footage of an existing "adult N
business" by more than ten percent (10%).
M. "Licensee" or 'I-icense Hold&' shall mean a person in whose: name a license to m'
operate an adult business has: been issued; as -well as the person.4isted as an 3
applicant on an application for a, license- and in the case of a performer or a
manager, a person in whose name a performer or manager's license_ has been
issued authorizing employment in an adult oriented:business. N
- - V
N. "Managee' shall mean any person;d esig hated by .the owner or operator of an
adult oriented.business to be responsible for the operation of such.business at a
particular location at a particular time.
d
O. "Nudity."or "state of nudity' shall mean the showing of the human male or female 01
-� genitals, 'pubic area, anus,. or :buttocks with less than a fully opaque fabric
( covering, the showing of the female breast with less-than a fully opaque fabric
covering of any part of the areola; or-the showing .of completely or.opaquely M
covered, by fabric, male genitals in a discernibly turgid state
a
P. "Owne►' shall mean any of 'the following: (1) the sole proprietor of -an adult :CD
business; (2) any general partner of a partnership that owns and operates an Co
adult business' (3) the owner of a controlling interest in a corporation or L.L.C,
that owns and operates an adult business; or (4): the person designated by the = �
officers of a corporation or the members of an L.L.C. to be the license-hold.erfor
an-adult business owned and operated by-the corporation. U�
c
Q. "Performe►' shall mean a person who is an employee or independent contractor S
of`an adult business or any other person who, with or without any compensation p
or other form of consideration. provides adult live_ entertainment or. models for ri
patrons of an "adult business".- c
E -
R. "Regular and substantial course of conduct" and "regular and substantial portion
of its business" means any adult business where one or more of the following a
conditions exist:
1. The business devotes more than fifteen (15) percent or 100 square feet of
the retail floor.area, whichever is less, to adult oriented material; or-
Page 16 of 35
�PacketaPgk50''
2. The business or concern presents any type of Iive entertainment
characterized by an emphasis on specified sexual activity.or. specified anatomical
parts, or performers, models or employees appearing in public dressed only in
lingerie; or
3. At least twenty-fve percent of'-the gross receipts of the business are ^,
derived from:the sale, trade,-rental, display or presentation of services, products, c
adult material, or entertainment which are characterized by an emphasis on
matter.depicting, describing, or relating -to specified sexual activities or specified
anatomical areas.
N
S. "Religious facility shall mean a permanent facility exclusively used on a regular
basis.-for religious assembly, such as customarily occurs in a.synagogue,.temple,
mosque, or church, or convent,-or monastery. m
T. "Schoof' shall mean any.child care facility.or an institution of learning for minors, a
whether public or private, which! offers instruction in those courses of study co
required by the California Education Code or which is maintained pursuant to
standards set by the State Board of Education. This definition includes a nursery H
school; kindergarten; elementary school, junior high school,.:senior high school or o
any special institution of education, but it does' not include a vocational or o
professional institution of higher education, including a community or junior tM
college, college or university
N
H
U. "Semi-nude" :or:in a "semAnude condition" shall mean a state of.dress in which
clothing covers no more than the genitals, pubic region, and areola or nipple of =�
the female breast. This definition includes the entire lower portion of the :human M
female breast.
a
V. "Sex Club" shall mean any establishment not primarily dedicated to providing :�
overnight lodging accommodations, including a private club that permits persons r,
to engage in specified sexual activities in any public or semipublic portion of the a
establishment or which provides any private room to persons more than once in =
a twenty hour period: in which persons are permitted -to engage in specified
sexual activities. For the purpose.of this section, a "public or semipublic portion of
an establishment' shall _mean any portion of the establishment in which =
licensees, invitees,. visitors or guests of the establishment or its members are
permitted access and which is let, leased or.rented more than once in a twenty- 0
hour period.to persons who are entitled to exclusive use of the room. The above `V
notwithstanding, .a "sex club" is also any place which represents itself to any
person or group of persons as a place for persons to engage in specified sexual r
activities. o
' a
W. "Sexual encounter cente?' shall mean a:business or enterprise that offers for any
form of consideration physical contact in the form of wrestling or tumbling
between two or more persons, when one or more of the persons is in a state of
nudity or semi-nudity.
Page 17 of 35
;Racket�Pg;.;51`
X. "Sexually.Oriented Merchandise"-shall mean-
1. Sexually oriented implements, paraphernalia, or novelty items, such as,
but not limited to: dildos, auto sucks, sexually :oriented vibrators:,. benwa balls;
inflatable orifices, anatomical balloons with orifices,, simulated, and battery
operated vaginas, and similar sexually_ oriented devices which/are designed -or ^,
marketed primarily for the stimulation of human genital organs or c
sad o-masochistic.activity or distinguished or characterized by'their emphasis.on
matter depicting, describing or relating to "specified sexual activities" ,or
"specified anatomical areas"; or
- N
2. Lingerie' presented in combination with other merchandise contained
within this definition or the definition of adult oriented -material; leather goods U)
marketed or presented in a context to suggest their use for .sadomasochistic m
practices; or condoms or sexual lubricants presented in combination with other
merchandise contained within this definition or the definition of adult oriented a
material. Co
N
Y. "Specified Anaoomcca/Areas"'shall mean and include any of the following: N
c
0
1. Less than completely and` opaquely covered, and/or simulated to be 4a
reasonably anatomically correct; even if completely and opaquely covered
human:
N
N
a. -genitals, pubic region;
7
b. buttocks; anus; or m
C. female breasts :below a point. immediately above the top of the Q
areola; or ti
C :
2. Human male genitals in a discernibly turgid state, even if:completely or w
opaquely.covered.
s
C)
Z. "Specified criminal activity' shall mean any of'the following offenses:
c
1. Prostitution or promotion of prostitution; dissemination of obscenity; sale, .�
distribution or display of harmful: material to a minor; sexual performance o
involving a child; possession or distribution of child pornography; public N
lewdness; indecent .exposure; indecency with a child;. .engaging in
organized- criminal activity.; sexual assault; molestation of a child;
gambling; distribution- of a controlled substance; state penal code; or any
similar offenses to those described in this.subsection under the criminal or a
penal code of other states or countries;
2. For which:
Page 18 of 35
w Packef:Pg..522
a. Less than two years have elapsed since the date of conviction or the
date of release from confinement imposed for the conviction,
whichever is the later date, if the conviction is for a misdemeanor
offense;
b. Less than five.-years have elapsed since the date of conviction or the
date of release from- confinement for the-conviction, whichever is the o
later date, if the conviction is of a felony offense; or
c. Less than five years have elapsed since the date of:the-last conviction
or the date of release from confinement for the last conviction,
whichever is the later date, if the convictions .are of'two or -more
misdemeanor offenses or combination of misdemeanor offenses 'N
occurring within.any 247month period. m
3. The fact that a conviction is being appealed shall have no effect on the a
disqualification of the applicant. CO
o�
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AA. "Specified Sexual Activities" shall mean and include .any of the following,
CO
irrespective of whether :performed directly or indirectly through clothing or other c
covering:
1. Human genitals in a state of:sexual.stimulation:or arousal; and/or. d
' - N
2. Acts of human masturbation, sexual stimulation or arousal; and/or
3. Use of human. or animal ejaculation, sodomy, oral copulation, coitus or m'
masturbation; and/or
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4. Masochism, erotic or sexually oriented torture,, beating, or-the infliction of CD
pain, or bondage and/or restraints; and/or
5. Human excretion, urination; menstruation;.vaginal or anal irrigation; and/or
vi
6.' Fondling or other erotic touching of human genitals,.pubic region,.buttock,
or female breast. c
R
Section 18.70.030 Conditional Use Permit Required
0
A, Each adult business must, prior to establishment of such business, first apply for "'
and receive a conditional use permit. d
l=
B. Issuance; modification 'and/or revocation of a conditional use permit shall -be in
accordance with Chapter 18.83 of this tithe. Q
Section 18.70.040 Adult Business Permitted
No building, premises, structure or other facility shall be permitted to contain more than
one type of adult business -as such types of adult business are defined in Section
Page 19 of 35
�'r:fi=A6� jt
18-.70,020 of this chapter. For the purposes of this section; the catch-all phrase "adult
business"-shall not be considered a single type-of adult business.
'Section 18.70.050 :Location Requirements and Measurement of Distances
A. There is created a classification known .as the adult business (AB) overlay..zone.
The zoning map identifying the adult business (AB) overlay zone is attached -to the,
ordinance codified in this chapter as Exhibit A and is o.h:file in the office of the city clerk. c
The regulations set forth in this chapter .shall apply in all .zones, .in addition to other -
applicable regulations set forth in this chapter and other applicable portions of this code;
provided, however, that if any of:the regulations specified in this chapter.differ from any y
of the corresponding regulations specified in this title, or other ordinances for any zone
or area which is combined with the AB overlay-'bhe, then in such case the provisions_ 'of -y
'this chapter shall govern as to matters pertaining to.planning and zoning. Subject to the' m
foregoing, adult businesses shall be permitted in all areas designated asbeing located
in the AB overlay zone, provided that each adult business must comply with all a
applicable regulations of other zoning use designations.with which the AB overlay zone Co
is combined. N
B. Separation Standards. A permitted adult -business shall maintain the following c
spatial requirements:
1. No adult business shall be located .closer than five hundred-(500)feet from
d
-any park, school, church,.or day care center; and W
- W
2. No adult business shall be located closer than one thousand (1,000) feet
from a residential zone district; and m
3. No adult business shall: be located within one thousand (1,000) feet of
another adult:business; and a
o
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C. Measurement. Where- one use is required to be separated from another_ use, T
measurements shall be made in accordance with the following: ;
a
1. The required separation distance_shall be measured in a straight line:from
the nearest point, of the structure containing the adult business to the nearest
property line of the land uses identified in subsection 18.70.050(B):
c
2. If the adult business is located in a multi-tenant building, then the distance o
shall'be. measured in a straight line from the nearest point of the portion of the N
building occupied by the adult business to the nearest property line occupied by
the land.uses identified in subsection on 18.70.050(B). E
3. The required distance separation from uses identified in subsection
18.70.050(B) shall apply regardless of whether such land use is located inside or a
outside the boundaries of the City of Grand Terrace.
Page 20 of 35
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ifiAb V y_
4. The separationmeasurements shall be provided, and certified by a
licensed professional surveyor or licensed civil enginee,r.' hired by the adult
business.
D. Nonconformity. No legally permitted adult business shall become nonconforming
through subsequent establishment of a park, school, church, or day care center;- or
residential zone district located in closer proximity to the:permitted adult business than c
what is required by the separation standards-in this Section. .
Section 18.70.060 Determination of Use
A. Before the submittal of an application for a Conditional Use Permit for an adult
business .is submitted to the City, an applicant may submit a, "Determination of Use =_
Application" to the community development.-director containing the following-information..-
1. A legal description and sketch of the parcel-for the proposed use; M
:a
2. Confirmation of' the applicant's ownership; controlling interest in the CO
property, or-property owner's permission to submit the Determination of Use
Application; N
3. Detailed description.and type of proposed adult business; 2
4. A professional: 1icensed land surveyor's or licensed civil engineer'stM
delineation of the proposed building, lot lines and the location of its primary
entrance and confirming via specific measurements that the proposed adult
business meets-the separation distances identified in Section 18.070.050 of this >_
chapter; and m
5. Payment of the applicable filing fee. a
B. Action on Determination of Use Application. Within five (5) business days of
receipt of a complete Determination of Use Application; the community development
director shall:
c.
s
1. Determine whether the proposed use is a permitted use in the zoning
district in which it is to be located;. c
2. Determine whether the proposed use meets the required separation
distances; and o
N
3. If the:-above criteria are satisfied, approve the Determination of Use
Application, after which- the applicant may submit a. Conditional Use Permit .E
application.in accordance with Chapter 18:83 of the Zoning Code.
Section 18.70.07.0 Development Standards
k In addition to the site development standards contained in the underlying zone
district, an adult business shall conform to the following:
Page 21 of 35
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1. Structures. No adult business shall be located in any temporary., portable
or manufactured structure.
2. Exterior_ Fencing. No adult business shall have any fencing or other
structure exceeding-five (5)feet in height that obstructs the view of the parking lot
or.entrance ways of the business.
H
3. Security cameras. Adult :businesses shall comply with the following c
security requirements::
a. The adult business shall provide a.surveillance system-that visually
records and.-monitors all parking lot areas, rear alley areas :immediately adjacent to the
business, :the main building entrances) and :exiit(s), and any and all cash registers or H
cash offices on the premises of the: adult business. The business owner or his/her m
designated representative shall''instruct the company or individual(s)- installing the
surveillance equipment. at the. adult business :to position cameras to maximize the .a
quality of facial and body images. and to avoid backlighting and physical obstructions.
The adult business and the company or indiVidual(s) installing. the -surveillance N
equipment for any adult business shail :both be responsible for insuring reasonable
compliance with the provisions,of this section:and:the instructions by the adulf.business o
in:installing such equipment at the adult business.
b. The owner of the adult business shall also be responsible' for
insuring that-the adult business' video surveillance system complies .with the following
minimum standards:
S
3
i. - Video Cameras. Cameras shall have: a :minimum resolution :m
of five hundred lines per inch and.a minimum light factor requirement of 0.7 LUX.
Light sensitive lenses or the installation of additional lighting. maybe required to .o
increase picture clarity and brightness. Cameras shall be calibrated and focused
to maximize the quality-of the recorded image.
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ii. Video Recorder. The recording device shall be defined as a s
"high density recorder' by manufacturer specifications. The device shall be a d�
time-lapse recorder that displays. a current date and time stamp on the video
recording: Systems required to have more than one camera shall include a c
"quad" or "multiplexer'' video display splitter. Quad or multiplexed video systems o
shall_be:digital and must have the ability to: isolate individual camera angles for
maximized play back. The recording equipment and,all video.recordings shall be
secured in a locked area in which access is limited to the adult business owner, E
the permit holder, or,his/her designated representative(s).
�o
iii. Display Monitor. A display monitor with a minimum .screen a
size-of twelve inches ;shall be connected to the video surveillance system.at all
times. If a "quad" video display.splitter is'utilized, the display monitor shall have a
minimum screen size of fifteen.inches.
-Page 22 of 35
�PacketPg�56��
C. Video surveillance systems shall be maintained in good working order-at
all times.. The owner of the adult business shall instruct each employee to immediately
report any malfunctioning of or technical problems whatsoever with surveillance
equipment. Every three months,. the business owner or his/her designated
representative shall inspect all:cameras and video recorders to ensure proper operation
and shall perform the following functions: the camera lenses shall be cleaned and
calibrated into focus; any recording heads or other optical equipment shall be cleaned c
or optimized in another applicable manner, and the date and time stamp shall be
calibrated to reflect true information; all wires connected to the camera and video
recording device shall be inspected for wear and tear; and, a test recording shall be
done to verify the image quality and date and time stamp. The business owner or N
his/her designated representative shall :keep a video surveillance maintenance log c
documenting: all .inspections -and repairs to the system. Any technical problems or m
inoperable equipment shall be repaired-as soon as possible, not to exceed fifteen days =
from discovery of the problem. The video surveillance system and maintenance log are a
subject to periodic inspection by the police department, in order to ensure compliance ..
with this section. CO
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• v
d. The video surveillance system and recording device shall be in continuous _
operation from one full hour before to one full hour after the adult business is open to 0
the public, or any-portion thereof..Video recordings..of daily business operations shall be
kept a minimum of thirty days prior to reuse, destruction or deletion of such video d
recordings, and shall be provided to the police department:upon request. If recordings y
provided to the police department pursuant to this section are digital., a copy of "player" y .
software shall be provided with the =recording, in order to allow viewing of the digital
recording(s). :Such video recordings shall be. clearly marked with: the date the video m
recording was most recently recorded., and, in the event there are multiple recordings of
the same date, each video recording:shall be clearly marked in the sequential numerical a
order that it was so recorded. ti
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e. The.city..recognizes that.video technology is rapidly changing and that the
requirements of this section with respect to video recordings may not keep up with o
available technology. The Community Development Director, therefore, is authorized to
permit minor deviations from the.technical requirements of this section in order to allow
the use of additional sources of video and recording technology, so'long as such minor
deviations,are in keeping with the overall purpose of this section 'to provide for video S
recordings with images of- individuals and activities at adult business establishments o
that are discernible'and recognizable:in order to further law enforcement efforts and in N
order to deter unlawful, unsafe and unhealthy activities -or conduct at adult business
establishments. E
s
f. The Community Development Director :or the Sheriff's Department may a
increase or decrease the video security requirements set for in this subsection should
the particular circumstances at an adult business demonstrate. the need for such
change.
Page 23 of 35
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4. Lighting. All exterior areas and the entire perimeter of the building in which
the adult business operates, including parking lots, landscaped areas, driveways,
walkways, entry areas, refuse storage areas and premise entries/exits,.of the adult
business shall be illuminated. With: fixtures of sufficient intensity and number to
uniformly .illuminate eve . of the specified areas.with .an illumination level
from dawn to 'dusk at a minimum of 1:50 foot-candles, maintained and evenly .:
distributed at ground level with apptopriate devices to-:screen, deflect-or diffuse the c
lighting in such manner as to prevent.-glare or reflected light from creating adverse
cc
impacts on adjoining 00blic:and private properties. Inoperable and/or broken- (ights I,
f shall be replaced within 24 hours. L
5. -Signs. All adult businesses shall comply with. the following : sign d
requirements, in addition Jo-those of the"Chapter 18.80 (Signs) of the Zoning-Code. 3
Should a conflict exist between the requirements: of the Zoning Code and this m
subsection, the-more.restrictive shall prevail.
a
a. All proposed exterior signage. shall be submitted with the co
conditional use permit application-. 0
b. if an adult business does not serve alcohol, it shall post a notice inside the
establishment, within ten. feet (10•) of every entrance used by customers for
access to the establishment,.stating that persons below the age of eighteen (18)
years.of age are prohibited from entering onto the premises or within the confines
of the: adult business.. This notice shall be posted- on a- wall in a place of H
prominence. The dimensions of the notice shall be no less than six inches (60)
by six .inches (6•), with a minimum typeface of 25 points. If the adult business
serves alcohol, it shall comply with all notice and posting. requirements of the m
Alcoholic Beverage Control Department. The-adult business and its employees
and independent contractors. shall be responsible :for checking :identification to a
insure compliance with this Section. ti
T
c. No adult oriented material shall be displayed in window areas or any area d
where it would be visible .from any location other:than within the confines of the o
adult business.
d�
d. Signage shall not contain any flashing lights: _
Section 18.70.080 General:Operating Standards
0
A; All adult business shall comply with the following: N
- c
1. Specified criminal acts prohibited. No owner, manager, employee, E
independent contractor, server, entertainer or customer shall engage in or permit others
to engage in any specified criminal act on the,premises ofthe business. Q
2. EstablishMent.license. All adult.businesses shall post the license .issued
pursuant to Chapter 5.84'of the Grand Terrace'Municipal Code in a conspicuous, easily
.viewable location, at eye level, at the main cash register for the business and lighted in
a manner for ease of inspection.
Page 24 of 35
3. Licenses available for managers and entertainers. Each manager issued
an adult _business managers license, pursuant to Chapter 5.88. of the Grand Terrace
Municipal Code shall, at all times.when.on ,the premises of the licensed business, have
Said , license in. his .or her possession. The license for. each entertainer, issued an
entertainer's. license pursuant .to Chapter 5.88 of the -Grand Terrace Municipal Code
shall, be retained for ready inspection on the premises. of the adult business during all ..
times that an entertainer is providing entertainment subject to the license on the c
premises.
4. Concealing specified sexual activities and.specified anatomical areas from
public view. No adult-oriented business shall be operated in any manner that permits N
the observation of any material or activities depicting, describing, or relating to specified
sexual activities or specified anatomical areas from any public way or from any location
outside the building of such establishment. This section shall apply to any display, m
decoration, sign, orshow window.
A
5. Exterior doors and.windows.' No exterior door or window on the premises
sha.11 be propped or kept open at any time while the business is open to the public, or N
portions thereof, and-any exterior windows shall be covered with opaque covering at all
times. 0
0
6. Indoor areas open to view:by management. All indoor areas of the adult-
oriented business where patrons or members of the public are permitted, excluding
restrooms, shall be open to view by management at all times. H
7. Manager on duty. All adult businesses.shall have a licensed manager on
duty at .all times the business is open to the public, or any portion thereof, for any m'
purpose, and said manager's name shall be posted in a. conspicuous, easily viewable
location, at eye level, at the main cash register for the.business and lighted.in a manner a
for ease of inspection. The individual(s):,designated as the on-site manager or other ti
direct :contact of person who can address issues shall be registered with the: City's Cd
Community Development Director by the owner to receive all complaints and shall be
given by the owner and/or operator the responsibility and duty to address and
immediately resolve all violations taking place on the premises.. No on-duty. manager
shall act as a door-person, ticket seller, ticket taker, admittance person, security guard,
performer or adult cabaret dancer during any time that that person is designated as or is
acting as the on-duty manager.
8. Hours of Operation, It shall be unlawful for any owner, operator, manager, C
employee or independent contractor of an adult business to allow such adult business
to remain open for business, .or to allow any employee, independent contractor or
performer:to engage in, a performance, solicit a performance, make,a sale, solicit a sale., �
provide a service, or solicit a service, between the:hours of 12:00 a-.m. and 9:00 a.m. of
any day excepting an"adult hotel/motel". The-hours of operation of anyadult business a
which .has:a permit from. the California Department of Alcoholic Beverage Control shall
be governed by the provisions of that permit and not .by this section as to operating
hours. It is also unlawful for any performer or adult cabaret dancer of an adult business
to engage in a performance, solicit a performance, make a sale, solicit a sale, provide a
'Page 25 of 35
,''Packet Pg:;59
service, or solicit a service; between the hours of 12:00 a.m. and 9:00 a.m. of any
particular day.
. 9. Noise. No loudspeakers or sound equipment shall be used :by an adult
business for the amplification of sound"to a level discernible by the public from outside
the building in which such use is conducted or which violates the City', Noise
Ordinance. H
c
2
10. Security Guards. .All adult businesses shall employ security guards. in 3
order to maintain the public peace and safety, based upon the following standards: d
a. Adult businesses: providing live entertainment shall provide at least
one security guard continuously from one full hour before to one full hour after =_
any adult live entertainment is conducted' at the business, to maintain the-peace m
and to enforce, all statutes, ordinances and conditions of the permit. If the =
occupancy limit of the:premises is greater than 35 persons, an additional security a
guard shall be on,duty during the required time period. ..
co
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b. Security guards for other adult businesses may be:required or the
number of required guards may be, increased from the requirements in
-subsection a, if-it is determined by the Sheriff's Department or the Community c
Development Director that their presence is necessary based upon:the particular
circumstances at.such,adult,business demonstrating the need for such change.
C. Security guard(s).shall be charged with preventing violations of law to
and enforcing, compliance by patrons, employees and entertainers with the
requirements of these regulations. Security guard(s) shall be uniformed in such m
a manner so as to be, readily identifiable as a security guard by the public.and =.
shall be duly :licensed as a, security guard. Security guards shall otherwise a
comply with the provisions of California.Business and Professions Code Section o
7582, et seq. No security guard required pursuant to this subsection shall act:asVo
a door person, ticket seller, ticket taker, admittance person, or sole occupant of
the manager's station while acting as a security guard. a
s
d. Security guards) shall regularly patrol the parking lot and adjacent
outdoor"areas of the facility to maintain order therein and prevent any illegal or
nuisance activity adjacent.to the adult business or.caused by patrons'of the adult =
business.
o-
11. Trash. At least as often as at the time of the opening -and closing of the N
adult business, the front and rear exits)/entrance(s), along with the.parking lot, shall, be 4.;
inspected :for trash and debris and any trash and debris found shall be immediately E
removed.
12. Age of employees. Employees, including independent contractors, of an a
adult business must be at'least eighteen (18.) years of age. It.shall.be unlawful for: any
owner, operator, manager, partner, director, officer, shareholder with a :ten percent
(10%) or greater interest, employees, or other person in charge of any adult business to
employ, contract with, or otherwise retain any services in connection with ,the .adult
Page 26 of 35
_ :.PackN60?.
•�6Aa5:
business with or from any person who is not at least- eighteen (18) years of age. If
liquor is served at the adult business, employees., including independent contractors, of
the adult business must be at least,twenty-one (21) years of age. If.liquor:is served at
the adult business,. it shall be unlawful for any owner, operator, manager, partner;
director, .officer, shareholder:with a ten percent (10%) or greater interest, employee, or
other person in charge of any adult business to employ, contract with, or otherwise y
retain any services in connection with the adult business with or from,any, person who is c
not twenty-one (21) years of age. 'Said persons shall exercise reasonable care in
ascertaining the true age of persons seeking to contract with, be employed by, or
otherwise service the adult business, including verifying with validly issued official
government identification and any additional requirements as may be imposed by the N
California Department of Alcoholic Beverage Control.
•N
13. Age of patrons. It shall be unlawful for any owner, operator, manager:, m
partner, director, officer, shareholder with a ten percent (10%) or greater interest,
employee,, independent contractor, or other person in charge of any adult business to a
permit to enter or remain within the adult business any person who is not at least c
eighteen (18) years of.age. If liquor is served at the adult business, patrons.must be at 04
least twenty-one (21) years of age. If liquor is served at the adult business, it shall be H
unlawful for any owner, operator, manager, partner, director; officer, shareholder with.a o
ten percent (10%), or greater interest, employee, independent contractor, or other
person. in charge of any-,adult .business to permit to enter or remain within the adult
business .any, person who is not at least twenty-one (21) years of age. And:-said
persons shall exercise reasonable care in ascertaining the true age of persons entering N,-
the adult business.
14.. Regulation of Public Restroom Facilities. If the adult business provides m
restrooms for .patron use, it shall. provide separate restroom facilities ;for male and a
female patrons. The restrooms shall be free from adult oriented material. Only one (1) a
person shall be allowed in each.restroom at any time, unless otherwise required by law,
co
in which case the-adult business.shall employ-a- restroom attendant of the same sex as
the restroom users who shall be present in the public: portion of the restroom during a
operating hours. The attendant shall insure that no person of the opposite sex is s
permitted into the restroom; and that not more than one (1) person is permitted to enter d�
a restroom stall, unless otherwise required by law, and; with the exception of urination, c
that no persons engage ,in any specified .sexual activity or the exposure of specified (a
anatomical. parts in the.public;portion of the restroom. Access to restrooms for-patron o
use shall not require passage through an area used as a dressing area by:performers.
N
15. Interior Lighting Requirements. All interior,areas of an adult business.shall d
be illuminated at all times during which the adult business is open. to the public, or any E
portion thereof, with overhead fixtures of sufficient intensity and number to uniformly
illuminate every place-to which patrons are permitted access with an illumination level at a
a minimum of the following foot candies, minimally maintained and evenly distributed at
ground level. Inoperable.and/or broken lights shall be replaced within twenty-four (24)
hours.
-Page 27 of 35
,Packef,'Pg�61 '
Use Footcandles
Adult retail store 20
10, except during performances;
at which time the lighting in the-
Adult theater, cabaret,-motion_ area of the performance shall be at
picture•theater least 1,25 footcandles. All other c
w
areas shall be 20 footcandles during
performances.
Adult arcade, viewing area/booth 10 N
d
Adult hotel/motel 20 in public areas only y
Adult modeling/photography 00
studio 20
. a
Co
16. Display.of Adult Oriented Materials. All displays of materials characterized N
or distinguished by matters describing or 'relating to "specified sexual activities" or y
"specified anatomical areas, as defined in this Code, shall be completely screened from c
public view as viewed from adjacent sidewalks, public rights-of-way, and parking areas. �o
a�
Section 18.70.090 Regulation of Adult Arcades and Adult Booth/Individual
Viewing Area
r� d
�_. A: The following additional requirements.apply to adult arcades and businesses U)
providing adult booth/i_ndividual viewing_areas. m
1. Visibility from manager station(s). The interior of the premises shall be
configured in such 'a .manner that there is an unobstructed view from a manager's
station of every area of the premises to which any patron is permitted access for any
purpose, excluding restrooms. If the premises has two or more manager's stations d
designated, then the interior of.the premises shall .be-configured in such.a.manner that C
there is an unobstructed view of each area of the premises to which any patron is
permitted access for any purpose from at least one of the manager's stations. The view
required in this subsection must be a.direct line of sight from the manager's station.
C
2. Occupancy. No adult booth/individual viewing area shall be occupied by -E
more than one individual at a time.
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3. Visibility of adult booth/individual.viewing area. Each-adult booth/individual d
viewing area within the adult business shall be visible from a continuous and accessible =
main aisle in a public portion of the establishment, and shall not be obscured by any o
door, curtain, wall-, two-way mirror. or other device which-would prohibit a person from a
seeing the entire interior of the adult booth/individual viewing area from the main-aisle.
Any adult business may have more than one manager station in order to ensure
compliance with this regulation. At all times, the manager station(s) shall!be maintained
to ensure a clear line of sight into the interior of the adult/booth individual viewing area.
Page 28 of 35
- :�:PacketyPg,�62
Further, no one shall maintain any adult- booth/individual viewing area in any
configuration unless the entire interior wherein the picture or entertainment that is
-viewed is visible from the manager station(s). The entire body of any :patron in any
adult booth/individual viewing area must be visible from'the main aisle and the manager
station(s)without the assistance of mirrors or any other device..
4. Obstruction of view prohibited. No doors are permitted on an adult
booth/individual viewing area. :No partially or fully enclosed adult booth/individual °
viewing areas or partially or fully concealed adult booth/individual viewing areas shall be 3
maintained.
5. Maintenance of booths/individual viewing areas. No holes or other d
openings shall be permitted: between adult*booths/individual viewing, areas. Any such H
hole or opening shall be repaired within twenty-four (24) hours using "pop" rivets to m'
secure metal plates over the hole :ot opening to prevent patrons from removing the
metal plates. a
6. Seating. No beds, couches or chairs with. a sitting area: greater than N
twenty-four inches (24-.) wide shall be permitted in an adult booth/individual viewing
area. N
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7. Manager station. At all times that a booth,is occupied,.the manager must
be the manager's station.
Section 18.70:100 Regulation of Adult Live Entertainment N
A. The following additional requirements shall apply to adult businesses providing
adult live entertainment: M
1. Separation. No live entertainment shall be conducted, at an adult Q
business except upon a permanently fixed stage at least eighteen inches (18"), above :CD
the level of the floor which is separated by a-distance of at least ten feet (10') between
patrons and performers at all times while performing, and no patron.-shall be permitted ;
within ten feet (10')7of the stage while the stage is occupied by a performer: Fixed rail(s) o
or similar .barrier measuring at least thirty inches (30") in height shall be maintained .0
establishing the separations between performers and patrons., 01
c
2. Contact .prohibited. 'No performer or adult cabaret dancer, during c
performances, shall have physical contact with a patron and no patron shall have "E
o.
physical contact with a performer or adult cabaret dancer during performances. This C4
subsection shall only apply to physical contact anywhere on the premises of the adult
business. This prohibition does not extend to incidental touching.
In addition, while on the premises, no performer or:adult cabaret dancer shall have
physical contact with a patron and no patron shall have physical contact with a a
performer or adult cabaret dancer, which physical contact involves the touching of
the clothed:or unclothed genitals, pubic area, buttocks, cleft of the buttocks,
perineum, anal.region, or female:breast with any part or area of any other:person's
Page 29 of 35
Packet,Pg Jka
body either-before or after any live'entertainment by-such performer or adult cabaret
dancer.
3. Signs. 'Patrons shall- :be advised of the separation and: no touching
requirements by signs conspicuously displayed and' placed on the barrier between
patrons and .performers and: utilizing red or :black printing of letters not less than one
inch (1") in size. And, if necessary, patrons shall also be:advised of the separation and
no touching requirements by employees or independent contractors" of the
establishment.
4. ` Clothing. All employees, performers, and independent contractors of the N
adult facility, while on or about the premises or tenant space, shall wear at-a. minimum d
an opaque:covering which covers their specified.anatomical areas.. As to performers or
.cabaret dancers while performing adult live entertainment, such performers or cabaret m
dancers must wear- at a minimum -what is commonly referred to as pasties and a g-
string, or other attire that similarly provides at least an opaque covering which does not a
expose the areola or nipples-of the female breast, and while covering the natal cleft and
pubic area-covers not less than one inch on either side:of the entire.length-of the natal N
cleft and two inches across the pubic area. No.person, and no owner or other person
with managerial control over an adult business�shall permit any person, on the:premises c
of the adult business to engage in any five showing, of the human male or female
genitals, pubic area; -or buttocks with: less than a fully opaque covering;, and/or the
female breasts with less than a fully opaque covering over any -part of the nipple or &
areola and/or covered male genitals in a.discernibly turgid .state. This provision may not. :N
be complied with by applying an opaque covering -simulating the appearance of the c
= specific anatomical part required to covered. No performer or adult cabaret-dancer .3
shall appear:in the nude on the premises"of:an adult business"at any time, except in:a m
dressing room-that is maintained for the exclusive use of performers and adult cabaret
dancers, and to which the public,.or any:portion there, is not admitted, or in restrooms. o
CO
5. Tips. Patrons::shall not throw money to performers, place monies in the
performers' costumes or otherwise place.or throw monies!on the stage or tc performers. a
If patrons.wish to pay or tip performers, payment-or tips may be .placed'in containers. _
Patrons shall: be advised of this requirement by signs conspicuously displayed: and
placed on the barrier between patrons and performers and utilizing red or black printing
of letters not less than one inch (1") in size. If necessary; patrons shall also.:be advised
of the tipping.and gratuity requirements by employees or independent contractors of the
adult business. O
N
6. Dressing rooms. The -adult business -shall provide dressing rooms for c
performers, that are separated:by gender and"exclusively dedicated to the performers' E
use and which the performers shall use. Same gender performers may share a
dressing room. Patrons shall not.be permitted in dressing-rooms. a
7. Performer .entrancelexit. The adult business - shall provide an
entrance/exit to the establishment for:pe_rformers that is:separate from the entrance/exit-
used by patrons, which the performers shall use at all times.
Page 30 of 35
==Packet Pg:t,.64 �
W-A;b
8. Separate access. The adult business shall provide access for performers
between :the stage and the dressing rooms that is completely separated from the
patrons. If such separate access is not physically feasible, the adult business shall
provide a minimum three foot (3•) wide .walk aisle for:performers between the dressing
room area and the stage, with a railing, .fence or other barrier separating the patrons
and the performers capable of (and which actually results in) preventing any physical
contact between patrons and performers and the patrons must also be three feet (3�) `o
away from the walk aisle. Nothing in this Section is intended to exempt the adult
business from compliance with the provisions of Title 24 of the California Code of
Regulations pertaining to handicapped accessibility.
- N
9. - Stage Access. The adult business, its manager(s), employees and/or
performer(s): shall prohibit any person other-than a licensed performer, employee or
agent for purposes relating to operation of the adult business from occupying the stage m
area'.
10: Seating. Seating shall consist of chairs or open booths; No couches, Co
beds, loose cushions or mattresses, or other forms of seating shall be provided. N
Section 1.8.70.110 Regulation of Adult Motion Picture Theater _
- o
A. The following additional requirements shall apply to adult motion picture theaters:
o�
1. Presentation area. All screenings of motion pictures, videos.- or other
media shall occur-in a room open to all customers of the establishment: No walls,
dividers, curtains,.screens, shades or other similar devices shall be used.-to partition any
part of the screening room. m
2. Seating. Seating in the .presentation area shall consist of individual,
theater-style chairs (maximum seat width twenty :(20) inches), with solid arms a
separating the chairs. No .couches, benches,_ portable chairs, beds, loose cushions or
mattresses; or other .forms of seating shall- be provided by the adult business or
permitted in the presentation area. Separate spaces for wheelchairs shall be:provided in a
accordance,with the applicable provisions of the building code and the Americans with =
Disabilities Act; and:
- d
a. , Have a continuous main aisle alongside the seating-areas in order
that each person seated in the hall or auditorium area shall be visible from :the S
aisle:at all times. 0
N
b. Have a sign posted in a conspicuous place at or near each
entrance to the hall :or auditorium area which lists the maximum number of
persons who may occupy the hall or auditorium area, which number shall'not 0
exceed the number of seats within the hall or. auditorium area. a
Section 18.70.120 Regulation of Adult Modeling and Adult.Photography Studios
A. The following additional requirements shall apply:to adult modeling.and
photography-studios:
Page 31 of 35
1. Furniture. An adult modeling and/or photography studio shall-not place or
permit a bed, sofa, or mattress in any room-oh'the premises open to the public or
any portion thereof, except that a sofa may be placed in a reception room open to
-the public.
Section 18.70.130 Regulation of Adult Retail Store
- H
The following.additional requirements shall apply to adult retail stores: , 2
w
1. _Age of patrons. The selling; renting and/or displaying of x-rated movies,
- videotapes, digital video disks (DVDs),. compact disks :(CDs) and laser disks shall be m
restricted to .persons over eighteen (18) years of. age. If an establishment that is not
otherwise prohibited from providing access to the establishment to persons under 6
eighteen (18) years of age sells, rents, or displays movies, videos, DVDs, CDs or laser
m
disks that have been rated "X" or rated "NC-17" by the motion picture rating industry =
("MPAA"), .or which have not been submitted to the MPAA for a rating, and which a
consist of images that are distinguished or characterized by an emphasis on depicting •
.or describing specified sexual activities or specified anatomical areas,. said movies, CO
videos, DVDs, CDs; -and laser disks shall. be .located in a specific section of the
establishment where these -items are not visible-to persons under the age of eighteen c
18 and from which persons under the age of eighteen 18 shall be prohibited. 2
2.. Separate room.. If a -business offers for sale or:rent both non adult oriented
materials, and/or merchandise and adult oriented materials and/or sexually oriented
merchandise, the adult oriented materials and/or merchandise shall be kept in a
separate room, physically and visually separate from the:remainder of the store by-an
opaque wall':reaching at least eight (8) feet high or to the ceiling, whichever is-less; and m'
posted with-a sign clearly stating;that no.one under the age of eighteen (18) shall enter
the room where the adult oriented materials and/or merchandise is located, unless the a
entire premises is limited to individuals over the age of eighteen (18). The on-duty
manager and owner shall be responsible at all:times for verifying .the age of individuals
entering this restricted..area.
cc
3.. .Age limit. No person under the age of eighteen (18) shall, be permitted
entry into :a room containing adult oriented materials and/or sexually oriented d�
merchandise. ' c
c
4. Location. If a -business offers .for sale or rent other materials and/.or
merchandise, the entrance to the room containing the adult oriented materials and/or
sexually oriented' merchandise -shall: be located so that it is as far as. reasonably N
practicable from materials and/or merchandise likely to be of interest to children. E
5. Room size.'Any room wherein adult oriented materials and/or sexually
oriented merchandise is offered for sale or rent shall be in an area containing at least a
six hundred :(600) square feet and having no walls, dividers, curtains, screens, shades
or other similar devices to obscure any part of the room from being monitored by the
manager, unless it is to separate the: adult oriented materials and/or sexually oriented
merchandise from non-adult oriented materials or sexually oriented merchandise.
-Page 32 of 35
6. On-site entertainment prohibited. At no time shall the store provide any
type of on=site adult live entertainment, or show any type of adult oriented electronic
imagery on the premises.
7. Displays. No displays of adult oriented materials,. adult or images,
and/or sexually oriented merchandise shall be visible from outside the room containing
adult oriented materials and/or sexually oriented merchandise or from the exterior of the c
business. °
8. Monitoring. Activities in any room having. adult oriented materials 'and/or �
sexually oriented merchandise shall be monitored at all times by a store clerk through a H
video:system located at the clerk's counter.
c
Section 18.10.140 Inspections. m
Each owner, operator, manager, employee or independent contractor of an adult
business or other person in charge of an-adult business shall permit representatives of a
the Sheriff's Department, County Fire- Department, City Planning, and Building and o
Safety and Code Compliance Divisions, to inspect those. portions of-the adult business
open 'to .the public or to portions of the public; for the purpose of insuring compliance c
with the operating standards of this Chapter applicable to adult businesses at any time it o
is- occupied or open. :for business, as well as to inspect, for compliance with the
provisions of this Chapter, those portions:of the adult business that may not be open to
the public; but only as :to -those portions directly relating to operating and regulatory J�
provisions of this Chapter, such as recording equipment for required security cameras. N
Such inspections shall ,be conducted in a reasonable manner, such that the inspection
minimizes any interference with or delay- of business operations, as reasonably m'
practicable to the purposes of the inspection; shall be conducted by the City's Code
Enforcement Manager, designee,.or other City employee charged with the responsibility Q
of monitoring compliance of adult businesses with this Chapter; and shall only be ti
conducted as necessary to insure compliance with the regulatory provisions of -this r?
Chapter or relating to an adult business or performer permits and licenses. Nothing in d
this section shall permit or authorize warrantless searches of property on the.premises, C
except as,otherwise permitted by law.
Section 18.70.150 Regulations non-exclusive and nuisance declared =
c
The provisions of this chapter are not intended to provide exclusive regulation of the
regulated adult uses. Such uses must comply with any and all' applicable regulations o
imposed in other,chapters of the zoning code, municipal code, city ordinances, and `V
w
state and federal law-. A violation of this chapter, or any provision of this chapter is d
hereby declared to constitute a public nuisance and, as such, may be abated or E
enjoined from further operation.
- a
Page 33 of 35
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Attachment:2.Ordinance_Chapter 18.70 Adult'Business'Regulations (1298 :Adult Business Regulations)
6A;f
SECTION 8. The City Council declares that it would have adopted this ordinance and
each section, subsection, sentence, clause, -phrase, or portion _bf'it irrespective of the
fact that any one or more sections, subsections, sentences,' clauses, phrases or
portions of it be declared invalid or unconstitutional. If for any reason any:portion of this
ordinance is declared invalid, or unconstitutional, then all other provisions shall remain
valid and enforceable. ^,
N
O
SECTION 9. This ordinance shall take effect thirty days from the date of adoption.
SECTION 10. First read at a regular meeting of.the City Council held on the 23rd of
July, 2013, and finally- adopted and ordered posted at ,a regular meeting.-of said City N
Council on the 13th of August, 2013. c
m
ATTEST:
a
co
CD
v
City Clerk Mayor _
0
�a
I, Tracey R. Martinez, City Clerk of the City of Grand Terrace, do 'hereby certify d
that the foregoing Ordinance was introduced-and adopted at.a :regular meeting of the 'N
City Council of the City of Grand Terrace held on the . of , 2013, by the
following vote:
=m
AYES:
NOES:
T.
.ABSENT: d
a
R
ABSTAIN:
c
c
City Clerk c
Approved as to form:
�a
City Attorney
Page 35 of 35
Packet ,949 _;
ORDINANCE NO.
AN ORDINANCE OF THE 'CITY COUNCIL OF THE CITY OF GRAND TERRACE
AMENDING TITLE: 5 OF THE GRAND TERRACE MUNICIPAL CODE: BY ADDING
CHAPTER 5.84 ADULT BUSINESS REGULATORY LICENSE AND CHAPTER 5.88
ADULT BUSINESS MANAGER AND PERFORMER LICENSE
THE CITY COUNCIL OF THE-CITY OF GRAND TERRACE DOES ORDAIN.AS
FOLLOWS:
i fA
J C
SECTION 1: Findings: °
A. Regulation of adult .businesses-have .previously been established 'by the
City:in the adoption:of Ordinance No.. 153, Chapter 18.70 (Adult Business Regulations) y
to be necessary for the protection of the public welfare, due to the potential negative
secondary, effects of_adult,businesses, including the following: crime, especially in the '3
form of illegal drugs-and prostitution; the deterioration of the city's retail trade; blight in m
neighborhoods and the reduction of property values; the disintegration of the quality of
the city's neighborhoods and the city's commercial districts; risk to the city's quality of a
life; the increased .threat of'the spread of sexually transmitted diseases; and potential.
interference with -the peace, welfare and privacy of persons who .patronize adult
businesses. The 'City Council reaffirms the need for the special regulation of such co
businesses.on the stated bases and as set forth.in detail herein. CR
B. The City Council, in adopting this ordinance, takes legislative:notice of the
existence.and content of the-detailed studies and reports prepared-by other jurisdictions CR
relating to the negative social and economic' secondary effects on persons- and y
properties surrounding established adult businesses, including the following: study of e.
Garden -Grove, California (1991); study of Tucson, Arizona (1990); study of Seattle, _
Washington (1989); study of Austin, Texas (1.906); study of Oklahoma City, Oklahoma d�
(198-6); study of Indianapolis, Indiana- (1984); study of Houston, Texas (1:983); study of
:Beaumont, Texas (1982); study of Minneapolis, Minnesota (1980); study of Phoenix,
Arizona (1.979); study of Amarillo, Texas (1977); study of Cleveland, Ohio (1.977);. study
of Los Angeles; California (1977); the recitals of:Ordinance Number 96-5 of the City of
Newport Beach, finding that crime rates: are higher in, areas surrounding, adult-oriented
businesses than in other areas, that the'existence of adult-oriented businesses which
permit public nudity has been shown in some cities to reduce the property values in .c
those areas surrounding the adult-oriented businesses.;:the law enforcement experience
of the City of La Habra and the City of Anaheim with-the-negative secondary effects of a
sexually-oriented businesses that both do and:do not serve alcohol; study of New York,
New York (1994); study of Newport News, Virginia (1996); study,of Times Square, New
York City (1994); Report of the Attorney General's Working Group on the Regulation of
Sexually Oriented Businesses, Attorney General, State of Minnesota (1989); A
Methodological Critique of :the Linz-Paul Report: A Report :to the San Diego City
Attorney's Office (2003); Sexually Oriented Businesses: An Insider's View _ Testimony
of'David Sherman before the .Michigan House Committee on Ethics and Constitutional
Page 1 of 43
Law (2000);-Closin'Time: Effective Regulation of Adult Businesses' Hours-of Operation,
by Scott Bergthold (2000); Summaries., of :Key Reports Concerning the Negative
Secondary Effects of Sexually Oriented Businesses, by Louis Comus III (2001); Peep
Show Establishments, Police Activity, .Public Place and-Time: A Study-,of Secondary
Effects in San Diego, California, by Daniel Linz et al. (2004), and Do Peep-shows
"Cause" Crime? A response to.Linz, Paul, and Yao, by Richard:McCleary et al. (2006).
C. The City Council is cognizant of the specific danger- from -the sexually
transmitted disease AIDS, which is currently irreversible and :can be fatal. The. City —�
Council takes legislative notice`that according to statistics provided by the Los Angeles
County Public Health Department in its Epidemiologic Profile of HIV and AIDS in Los
Angeles County 2009 ("Epidemiologic Profile of HIV and AIDS") as of December 31,
2009, .a cumulative total of 76,383 persons with HIV/AIDS have been reported in Los Angeles
County. Of these, a cumulative total of 56,091 persons have been diagnosed with AIDS, of y
which 31,448 have died during this time period. There are now over 44,450 reports.of persons d
living with HIV in Los Angeles County; of these approximately 24;600 living with AIDS. The y
City Council also takes legislative notice of the HIV .Disease Surveillance Statistics m'
2010, County of Orange Health Care Agency, Public Health Services, HIV/AIDS
Surveillance and Monitoring Program("HIV Disease Surveillance Report"),which states a
.that Orange County reports that it ranks fifth highest among California's 58 counties in
number of AIDS cases reported and fourth highest in the number of HIV cases reported. N
The HIV Disease Surveillance. Study reports that 10846 AIDS and HIV (non-AIDS)
cases were reported in Orange County-between 1981 and 2010. ' Cumulatively,..4,255 0
persons have died of AIDS, and: 6,591 are living with AIDS/HIV in Orange County. In "'-
2.01:0, there were 185 HIV and 76 AIDS cases diagnosed..in Orange County. The City
Council also takes legislative notice of the HIV / AIDS Epidemiology Report 2012 �o
("HIWAID.S Epidemiology Report") prepared by the Public Health Services Division of N
the County of San. Diego Health and Human Services Agency. According to the ;
HIV/AIDS-Epidemiology Report, San Diego County has-the third largest number of HIVCL
and AIDS cases in California. 'During the reporting period of 1981 through December.of 0i
2011 14,805 AIDS cases were reported throughout San Diego County, and
approximately :50% of those AID patients have died ..during the reporting period..
Between 1985 and December 2011, a total of 4,901 HIV cases were reported, with
1,020 of-the diagnosed cases occurring between 2009 through 2011.. o
M
D. The City Council is also concerned with preventing the spread of other
sexually transmitted diseases .such as syphilis, gonorrhea, chlamydia, and hepatitis B. s
The City Council takes legislative notice of the Sexually Transmitted Disease Morbidity
Report, 2010 prepared by the County of Los Angeles Department of Health Services, a
Public Health Sexually Transmitted Disease Program ("L.A. County STD Morbidity
Report"), 'and the Annual Morbidity Report and Special Studies Report 2010, Los
Angeles County Department of Public Health, Acute .Communicable Disease Control
Program ('2010 Communicable Diseases Morbidity Report"). The Los Angeles County
STD Morbidity Report indicates that between 2006 and 2010, 212,074 cases, of
chlamydia, 49,950 :cases of gonorrhea, and 14,546 cases of syphilis, .including 168
cases of congenital syphilis, were reported for Los Angeles County residents, while the
2010 .Communicable Diseases Report reported 355 cases of hepatitis B were reported
:Page 2 of 43
Packet Pg:71
between 2005 and 2010. The County .of Orange Health Care Agency, 2006-2010
Epidemiology and Assessment Cases and:Case Rates of Reportable Diseases, reports
that between 2006 and 2010, 1,560 cases of syphilis, 44,833 cases of-gonorrhea 41,276
cases of chlamydia,. and 94 cases of hepatitis B were reported. The City .Council also
takes -legislative notice of the County of San Diego, Health and .Human Services
Agency, HIV; 'STD and Hepatitis Branch of Public Health Services Sexually Transmitted
Diseases in San Diego County, 2011 :Data Slides, September 2012, and the County of
San Diego, Health and Human Services Agency, Public Health Services, Reportable
Diseases.:and:Conditions by Year of Report, 207=2011, which report that 83,605 cases
J' of Chlamydia, 13186 cases of gonorrhea, 1,749 cases,of syphilis, and 4;773 cases of
.hepatitis B were reported throughout San Diego County- between 2006 and 2011. It °
should also :be noted that the Los Angeles County 2009 Epidemiological Profile for 3
HIV/AIDS states that many sexually transmitted diseases, included syphilis, gonorrhea
and Chlamydia can facilitate the transmission of HIV and that the presence of a sexually
transmitted disease is thought to increase the odds of HIV transmission three to five-
fold. 'H
m
E. The ,City- Council takes legislative notice of the findings: and studies
conducted in. this and other cities regarding :increases in crime -rates, decreases in a
.property values and the blight of areas in which adult businesses are located, as such
studies are referenced in the following court opinions; T.M. Smith v. County of Los 04
Angeles, 211 Cal. App. 3d 188, 259 Cal. Rptr. 2d 281 (1989)-(discussing County of Los CO
Angeles study); City of.Renton v. Playtime Theatres, Inc.; 475 U.S. 946 (1979)
(discussing City. of Renton, Washington study); 1lllovie &Video World V. Board of County c
Commissioners, 723.F: Supp. 695 (S:D. Fla. 1989) (discussing County-of Palm-Beach, M
Florida study.
102,
F. The City Council also takes legislative- notice of the facts recited in the. a
cases of Kev, Inc. V. Kitsap County, '703 F.2d 1053 (9th Cir. 1986), and Colacurcio v.
Kent, 163 F.3d 545-(9th Cir: 1998), regarding how live adult entertainment results in
secondary effects such as prostitution, the sale and use of drugs, and other law
enforcement problems, as well -as the experience of other cities and counties in c
adopting adult business regulations (see also Colacucio v. City.of Xent, 529 U.S. 1053 a
(2000)). o
F. The City Council finds that the above studies and reports are relevant to d
the problems.:addressed: by :they City in enacting, this ordinance.-'to regulate the adverse t
secondary effects of :adult businesses,. and more specifically finds that these studies o
and reports provide convincing-evidence that: a
.1: Adult businesses are linked to:increases in the crime rates in those
areas in which they are located and in surrounding areas;
2. Both the: proximity of adult businesses to sensitive land uses and
the concentration,of adult:businesses tend to result in blight and deterioration of
the areas in which they are located;
Page 3_of 43
Packet:Pg 72
3. The proximity and concentration of adult businesses adjacent to
residential, recreational, religious, and education uses, as well as the proximity to
other adult businesses can have'adverse secondary effects on local..businesses
and:residences; and
4. There is substantial evidence than an increase in crime tends to
accompany,- concentrate around, and be aggravated by adult businesses,
including but not limited to an increase in the crimes of narcotics distribution and
use, prostitution, pandering, and violence against persons and property. The
studies from other cities establish convincing evidence that adult .businesses
which are not regulated as to permissible locations often have a deleterious 1
effect on nearby businesses in residential areas, causing, among other adverse
secondary effects, an increase in crime and a decrease in property values. N
- N
-d
G. The locational requirements established by this ordinance do not
unreasonably restrict the establishment or operation of constitutionally protected' adult m'
businesses, and a sufficient number of appropriate locations for adult businesses are
provided' in this ordinance,. given the size and population of the City of Grand Terrace, a
the wide availability of alternative adult businesses near Grand Terrace and within a o0
reasonable distance therefrom, and the access to and contemporary use.of the internet
in place customer patronizing of physical locations of adult businesses.
CR
H. The City Council finds that the separation and locational requirements
herein afford a reasonable opportunity for adult businesses to locate :in the City of
Grand Terrace, taking -into account all facts and circumstances relating: to adult
businesses and the demand for such uses within the City and surrounding areas,
including the following: a
Ca
1. The City's ordinance will ;be evaluated on: the basis of whether it 01
"allows for reasonable alternative avenues of communication." City of Renton v. c
Playtime-Theatres, 475 U.S. 41,.53 (1986);
2. The 11th Circuit Federal Court of Appeals has, for instance, found .o
in Boss Capital, Inc. v. City -of Casselberry, 187 .K3d 1251 (11 th .Cir. 1999), that
three adult business sites was sufficient for a town with a population of 24,000;
E
3. The City of "Grand Terrace has had no applications for adult
business establishments within the City at any time in the near-distant past; a
-4. Numerous adult businesses are located within 22 miles of Grand
Terrace,.and::are easily accessible.to residents of the City; and
5. As se#.forth below, there is significant access to adult materials and,
entertainment via the internet, mail-order, and other means which do not require
a physical business location.
Page 4 of 43
I. The,City of Grand Terrace had a population of 12,040 at the 2010 United
States Census and the total size of the City is 3.6=square-miles.
J. The City Council recognizes that residents in the City must generally travel
to entertainment in the area,.:such as movie.theaters, of which there are none within the
City. Specifically, residents likely travel 9.5 miles to theaters in Redlands,-, for instance,
22 miles to Rancho Cucamonga/Victoria,Gardens, or 13 miles to.Riverside. The closest
theater is in the City of Riverside, 5.8 miles from the City of Grand Terrace.
N
1 K. The City Council further: recognizes that,. as to adult businesses in
particular, there are 16 adult businesses within 22 miles of the City of Grand Terrace.
Im
Six of these businesses are within 5.8 miles and two are within two miles of the :City.
The adult businesses in close proximity to the City of Grand Terrace include the y
following: c
.N
1. Live entertainment establishments: Club 215 at 2680 S. La m
Cadena,-Colton; Fantasy Club at 1091 S. La Cadena, Colton; Flesh Club at a
100 W. Hospitality Lane, San Bernardino; Deja vu at 1331 W. Colton Ave, a
P.
Redlands; Spea.rmint:Rhino Club at,31:2 S. Riverside Ave; Rialto; Villa Theatre.at
1420 W. Holt'Blvd. Ontario; .Eyefull Adult Entertainment at. 5282 W. Mission cm
Blvd., Ontario; and Tropical Lei at 2121 W. Foothili Blvd., Upland; and
2. Retail stores, 'including books, novelites and/or videos: "For.
Discriminating Adults (SB Books)" at 304 South. E St., San Bernardino; Lotions
and Lace at 796 Inland Center, San Bernardino; "Le Sex Shoppe -(Pleasure IR
Shop) at 304 W. Highland Ave., San-Bernardino; 'BearFacts. Adult Bookstore"
at 1434 E. Baseline, San Bernardino; Thel Adult Shop at 736 Tennessee St., a
Redlands; Happy Time Adult Bookstore at 13834 Old 215 Frontage Rd., Moreno =
Valley; Baseline Books at 25557 Baseline St., Highland; "Jackman Adult
Bookstore" at 27409 5th St., Highland; Romantix at 3945 Market 'St., Riverside.;
Lotions and Lace at 10175 Magnolia Ave., Riverside; A Touch of:Romance at =
10281 Magnolia Ave:, Riverside; Lotions & Lace at 9197 Central Avenue,
Montclair; Toy Box at 1099 W. Arrow Rte:, Upland;.and"Adult Book and Video-
Mustang" at 961 N. Central Ave., Upland.
d
L.. Further, the internet is a judicially recognized: alternative channel .of =
communication 'and the City Council takes legislative notice of judicial opinions making o
such findings, as well as the fact that adult businesses often no longer need a physical a
location within a community. to be readily available via the internet, or even by mail-
order products to, residents and customers within a community (see Anheuser-Busch,
Inc. v. Schmoke, 1:01 F.3d 325, 329..(4th Cir. 1996), cert.. denied 520 U.S. 1204 (1997)
[Internet is; one available channel of communication]; Reno v. American Civil. Liberties
Union, 521 U.S. 844, 117 S.Ct. 2329, 138 L.Ed.2d 874 (1997) [the principle channel
,through which many Americans now transmit and receive sexually explicit
communication is the Internet]; United States v. Hockinas, 129 F.3d 1069 (9th Cir.
Page 5.of 43
_Racket_P;g:_`74:
1997); United States v..Thomas, 74 F.3d 701 (6th Cir. 1996), cert. denied 519 U..S. 820
[recognizing the Internet:as a medium for transmission of sexually explicit material in the
context of obscenity.'prosecutions]) .
M. It is not the intent of the City Council in adopting -this ordinance to
suppress any,activities protected by the First:Amendment, but rather to enact a content-
neutral ordinance which addresses the secondary effects that adult businesses may
have on. the city. In developing this ordinance, the City Council has been _mindful of
legal principles relating to ,regulation of adult businesses and :does not intend: to
suppress or infringe upon any expressive activities protected by the First-Amendments
of :the United States and California Constitutions, but instead desires to enact •�
reasonable time, place; and manner regulations that address the adverse secondary
effects .of.adult businesses. The City Council has considered decisions of the :United d
States Supreme Court regarding local regulation of adult businesses, including but not N
limited to the following: Young v. American Mini Theaters,'Inc., 427 U.S. 50 (1976); City
of Renton.V..Playtime Theaters, 475 U.S. 41 (1986); FW/PBS, Inc..v. City of Dallas; 493
U.S. 215 (1990); Barnes v. Glen Theatre, 501 U'.S. 560 (1991); City of Erie v. Paps A.M. m
("Kandyland"), :529..U.S. 277 (2000). ''The City Council has also considered United
States Ninth, Circuit Court of Appeals decisions and decisions in other jurisdictions, a
including-but not limited to-the following: City-of National City V. Wiener 3 Cal: 4th-832,
12 Cal. Rptr. 2d 701, 838 P.2d 223 (1992), cert. denied 510 U.S. 824 (1993); People v. N
Superior Court (Luc&6), 49 Cal. 3d 14, 259 Cal. Rptr. 740, 774 P.2d 769 (1989); City-of ,
Vallejo v. Adult Books, 167 :Cal. App. 3d 1169, 2:13 Cal. Rptr. 143 (1985), cert. denied
475 U.S. 1064..(198.6); Lakeland Lounge v. City of Jacksonville, 973 F.2d 1255 (5th Cir.
1992), cert. denied:507 U.S. 1030 (1-993);,Hang On, Inc. v: Arlington, 65 F.3d 1248 (5th
Cir. 1.995); International Eateries v. Broward County, 941 F.2d -1157 (11 th Cir. 1991), CR
cert. denied 503 U.S. 920 (1992); Lady. J: Lingerie-v..City .of Jacksonville., 973 F. Supp.
102
1428 (M.D. Fla. 1997); Lady J. Lingerie v. City of Jacksonville, 176 F.3d 1358 (11th Cir.
CL
1999) ("[a]mple evidence . . ..supports the . .'. finding that illegal and unhealthy activities
take place in small rooms at adult entertainment establishments."); Movie. &. Video
World, Inc. v. :Palm Beach County, 723 F. Supp. 695 (S.D. Fla. 1989); Colacurcio v.
Kent, 163 F.3d 545 -(9th Cir. 1998), 529 U.S. 1053 (200.0); Tily B. v. City of Newport
Beach, 69,Cal. App. 4th 1, 81 Cal. Rptr. 2d 6 (1998); Topanga Press, et al. v: City:of -a
Los Angeles, 989 F.2d 1524 (1993); Key, Inc. v. Kitsap County; 793 F.2d 1053 (9tfi Cir. o
1986).
c
m
N.. The City Council..recognizes that:adult devices (i.e. adult novelties.and/or
adult related products) such as dildos,. fur-lined handcuffs, leather whips, anal beads,
and devices that are physical representations of human genital organs, are not speech a
and enjoy:no First Amendment protections: Ford v. State.of Texas, 753 S.W.2d 451,
452-453 (1988); Sewell V. State of Georgia, 233 S.E.2d 187, 188489 (1977); Chamblee
Visuals. LLC v..City:of*Chamblee, 506 S.E.2d 113, 115 (Ga. 1998); and Red Bluff Drive-
In, Inc. v. Vance, 648 F.2d 1020 (5th Cir. 1981).
O. The City Council finds, that locational: criteria (over-concentration
regulations), alone, do not adequately protect the health; safety, and general welfare of
Page 6 of 43
the citizens of the City of Grand Terrace, and thus certain requirements with respect to
the ownership and operation.=of adult businesses are in the public iht.eres.
P. The City Council finds the following with.respect to live performers at adult
businesses:
1. Evidence indicates .that some dancers, models and other persons
who publicly perform "specified sexual activities" or publicly display "specified
anatomical parts" in adult businesses (hereinafter collectively-referred to as "adult
business performers") have -been found to engage in sexual activities with
patrons of adult businesses on the premises.of such adult businesses;' 2
2. Evidence demonstrates that adult business performers have been
found to offer and provide .private shows to :patrons who, for a price, are N
permitted to observe and participate with the performers in live sex shows;
3. Evidence indicates-that adult business performers have been found m
to engage in.acts of prostitution with patrons of adult business establishments;
Q
4. Evidence indicates that fully enclosed booths, individual viewing
areas, and other small rooms whose interiors cannot be seen from public areas
within an adult business establishment are used as a location for engaging in CO
unlawful sexual activity;
�o
✓` 5. Evidence indicates that adult businesses are frequently used for
unlawful sexual activities, including prostitution and sexual .liaisons of a casual
nature, and for the exchange.and use of illegal drugs; and .L
d
a
6. As a result of the above, and,the increase in incidents of AIDS and
Hepatitis B and C, all of which are sexually transmitted diseases, the city has a
substantial interest in adopting regulations which will reduce,, to the greatest
extent possible; the occurrence of prostitution and sex acts. -associated with
specific health risks at adult businesses.
0
Q. The- City Council finds that enclosed or concealed booths and dimly-lit 41
areas within adult businesses.greatly increase the potential for misuse of the premises, E
including:potential harm:to patrons and adult,business performers,.and unlawful conduct =
of a type which facilitates the transmission of disease. Requirements that all indoor
areas be open to view by management of adult businesses at all times, and that a
adequate lighting be provided-are necessary in order to reduce .the opportunity for., and
therefore, the incidence of, illegal conduct -and harm to. patrons and adult business
performers within adult businesses, and.to facilitate the inspection of the interior of the
premises by law enforcement personnel. The Council relies on the opinions of courts
upholding such requirements, :including but not limited to Fahiasyland Video, Inc. v.
County of San.Diego, 505 F.3d 996, 999-1000 (9th.Cir. 2007).
Page 7 of 43
;PacketPg.76~_
.R. The City Council finds 'that a permitting scheme is a legitimate and
reasonable means of accountability to ensure that operators of.adult businesses comply
with reasonable regulations and to ensure that operators do not knowingly allow their-
establishments,to be, used as places::of illegal sexual activity or solicitation, and further
finds that these methods of 'regulation constitute a legitimate exercise of zoning,
licensing and police power authority to protect the quality of life in the Grand Terrace
community and-minimize the adverse secondary effects which naturally accompany the
operation of adult businesses..
S. The City Council recognizes the possible--harmful effects on children and
minors exposed to the effects of adult businesses and':the need and desire of children w
and minors to stay away from and avoid such businesses, which causes children to be
fearful: and cautious when walking through or visiting the immediate neighborhood -of A
such businesses; desire to minimize and control adverse secondary side effects H
associated with the operation of adult businesses; preserve the quality of life, preserve
property values and the character of surrounding neighborhoods and businesses; and
deter the spread of urban blight. m
T. The City Council specifically takes note of the possible harmful effects:on a
children and minors exposed to the effects of adult businesses or adult-oriented �o
material, and recognizes the need to regulate adult businesses and/or materials in order N
to minimize and/or eliminate such exposure. The City Council further acknowledges the
co
provisions- of California Penal. _Code Sections 313, et seq:, and Section 313.1.(d); :in
particular, authorize local governments to regulate matter-that is harmful to minors, and
that courts have upheld a city's compelling interest in protecting minors. from sexually
explicitly, adult-oriented materials. Crawford V. .Lungren, 96 F.3d 380 (9th Cir 1996), CR
cent. denied 520 U.S. 1147 (1997) (state statute balanced.competing interests of access
to adult-oriented publications with public interest in shielding minors from influence of a
such materials by' limiting their access to such publications); Berry v. 'City of Santa _
Barbara, 40 Cal. App. 4th 1075:0 995) (same).
d
U. The 'City Council finds that requiring adult businesses Io install and CM
maintain video surveillance equipment at the business establishment is an appropriate
restriction on such businesses, necessary to further the important governmental interest
in deterring crime or illegal activity at such businesses, including but not limited to w
possible prostitution, altercations between patrons, thefts, burglaries, and drug d
transactions. The City. Council further finds that the video surveillance provisions =
enacted herein are specific as to the exact type of equipment to be installed, as well as M
to the manner of installation, such,that the provisions are not vague and are-necessary 4
to ensure usable quality recordings. In addition, these provisions, regarding the
maintenance of the surveillance systems-and the'installation of specific equipment, such
as monitor size, type of video recorder, and type of video camera, are the minimum
necessary to allow police investigation of crimes committed at adult businesses. -
V. The City Council has. also determined that a closing :hours :requirement
promotes the reduction of deleterious secondary effects from adult businesses, and the
Page 8 of 43
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Council reasonably relies on prior-court decisions on the need for -closing hours,
including Mitchell v. Commission on Adult.Entertainment, 10 F.3d 123, 131-139 '(3d Cir.
1993); Lady J. Lingerie, Inc. V. City of Jacksonville, 973 F. Supp. 1428 (M..D. Fib. 1997)
and, Lady J. Lingerie,
Inc. v. City ,of Jacksonville, 1.7.6 -F.3d 1358 (1 1th Cir. 1999);
Fantasyland'Video, Inc. v. County of San Diego, 505 F.3d 996, 999-1000 (9th. Cir.
2007);.Dena Vu of Cincinnati,'LLC v. Union!TWO. Bd. of Trs., 411 F.3d 777, 789-792 (6th
Cir. 2005); Richland Bookman. Inc. v: Nichols, 137 F.3d 435, 440-4.41 (6th Cir. 1998);
CitV of Colorado Springs v. 2354; Inc.; 896 P.2d 272 (Co. 1995); Center for Fair Public
Policy'v. .Mairicopa County UlVlaricopa"), 336 F.3d 1153 (9th Cir. 2003); DiMa Corp. v.
Town of Hallie, 185 F.3d 823 (7th Cir. 1999); Richland. Bookmart, Inc. v: Nichols, 137
F.3d 435 (6th Cir. 1998); National Amusements, l6c.v.'Town of Dedham-, .43 F.3d 731: .2
(1st Cir.. 1995); Mitchell v.. Commission on Adult.Entertainment,. 10 F.3d 123 (3rd Cir.
1993); Star Satellite v. City of Biloxi,.779 Fi2d: 1074.(5th Cir. 1986).
W. The City-Council recognizes that this ordinance is necessary to revise the
permit application process for adult businesses to bring the city's ordinance current with U)
existing case law and to further reduce and control the negative secondary effects of M
-adult businesses. This is in keeping with evolving case law and is part of the city's
continuing efforts to balance the First Amendment rights of adult business operators
and patrons with the city's substantial -governmental interest in reducing -adverse CO
CD
-secondary effects relating to such businesses. The use:of a permit process is essential N
to eliminate the adverse secondary effects of adult businesses by allowing the city to CO
monitor and regulate the location and concentration of such establishments, and, inJact, :CO
is the least restrictive means for the City of Grand Terrace to do so, constitutionally and
effectively.
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X. The City Council finds that preventing the direct exchange of money
between adult business performers and patrons will-serve to reduce the likelihood of
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drug and sex transactions occurring in adult businesses. Requiring separation-between
adult business performers and patrons also reduces the likelihood that such persons.will
negotiate narcotics sales and/or transact sexual favors within the adult business.,
C
C
Y. The City Council -believes: that :prohibiting -physical contact between
performers and patrons at an adult use business, requiring -separate entrances for 0
performers from those used for patrons, requiring separate restrooms for opposite
sexes, prohibiting performers from soliciting payment of gratuities from patrons,. and C
prohibiting-the direct payment of gratuities to 'performers by patrons are a reasonable
and effective means of addressing the legitimate governmental interests of preventing cc
prostitution, the spread of sexually transmitted diseases, and drug transactions.
Z. The City Council recognizes that a- number of courts of law .have upheld
distance limitatibhs: between pbrforrh6rs and patrons, prohibitions against physical
contact between performers and patrons, and direct payment and receipt of-gratuities
between performers and patrons at adult business establishments that provide live
entertainment, including the following: Key, Inc. v. K its8P County, 793 F.2d 1091 (9th
Cir. 1986); IDLS., Inc.-v..City of Chattanooga, 894 F: Supp. 1140 (E.D. Tenn. 1995),
Rage 9 of 43
Parker v. Whitfield County, 463 S.E.2d 116 (Ga. 1095); Hang .On, Inc. v. City of
Arlington, 65 F.3d 1248 (5th Cir. 1996); Colacurcio v. Kent, 163 F.3d 545 (9th Cir.
1998), 529 U.S. 1053 (2000); Tily B. v. City of Newport Beach, 69 Cal. App. 4th 1-
(1:998); Entertainment.Prods., Inc. v. ShelbV County, 588. F.3d 372, 394 (6th Cir. 2009),
and 729, Inc. v. Kenton County Fiscal Court, 515 F.3d 485, 493 (6th Cir. 2008).
AA. The City Council takes notice of the fact,that California Penal Section
318.5 and 318.6 acknowledge the authority of local governmental agencies-to regulate
topless and bottomless waiters, waitresses, .and: entertainers, or exhibitions in public —
places.
v`
w
BB. In developing this ordinance, the .City Council is mindful of legal:principles 5
relating to the regulation of adult businesses. The City Council has considered decisions
of the United .States Supreme Court regarding local regulation of adult businesses,
including but not limited to the following: Gammoh v. City of La.Habra, 395 F.3d 1114
(9th Cir. 2005), amended 402 F.3d 875, Pert. -denied 126 S.Ct. 374; Dream Palace v. '3
County of Maricopa, 384 F.3d 990 (9th Cir. 2004); World Wide Video. v. City of m
Spokane, 368 F.3d 1186 (9th Cir. 2004); Diamond v. City of Taft, 215 F.3d 1052 (9th
Cir. 2600),. cent. denied 531 U.S. 1072 (2001); Isbell v. City_ of San Diego, 258 :F.3d a
1108 (9th Cir. 2001); Young v: City of Simi Valley, 216 F.3d 807 (9th Cir. 2000), cent.
denied 531 U.S. 1104 (2001); Lim v.City of Long Beach, 217 F.3d 1050 (9th Cir. 2000), CM
Pert. denied 121 S:Ct. 1189 (2001*); Baby Tam & Co., Inc. v. City of Las Vegas ("Baby CO
Tam 1"), 154 F.3d 1097 (9th Cir. 1998); Bab- Tam & Co.. Inc: .v: City of Las.VegasAR
("Baby Tam II"), 199 F.3d 1111 (9th Cir. 2000); Baby Tam & Co., Inc. v: City of Las
Vegas ("Baby Tam.III ), 247 F.3d 1003 (9th Cir. 2001); 4.805 Convoy,Inc.:v..City.of San
Die o, 183 F.3d 1108 (9th Cir. 1999); Spokane Arcade, Inc. v. City of Spokane, 75,-'F:3d Cq
663 (9th Cir. 1996); Department of Alcoholic`Beverage Control V. Alcoholic Beverage 0
Control Appeals .Board of California .("Vicars"), 99 Cal.AppAth 880 (2002); G.M. a
Enterprises v. Town of St. Joseph, 350' F.3d-631, (7th Cir. 2003);.SOB, Inc. v. County of
Benton; .317 F.3d 856 (8th Cir.. 2003); N.W.. Enterprises, Inc. v. City of Houston, 372
F.3d'333 (5th Cir. 2004); and N.W. Enterprises, Inc.v. City of Houston, 352 F.3d 162
(5th Cir. 2003);. Ellwest Stereo Theatres. Inc. v. Wenner, 681 F.2d 1243 (9th Cir. 1982)
(including.its finding that there is no constitutional right to unobserved masturbation in:a 'a
public place); Deluxe Theater & Bookstore, Inc. v. City of San Diego, 1.75 Cal. App. 3d o
980 :(1985) (finding that the right to :privacy guaranteed by the California 'Constitution
does not protect the right to unobserved masturbation in a public place); County of. San
Diego v. 1560 N. Magnolia Ave., 2009 Cal. App. Unpub. LEXIS.1198, 27-28 (Cal. App.
4th Dist. 2009); .Heideman v. S. Salt -Lake City, 165 Fed. Appx. 627, 633 (10th Cir.
2006). a
CC. The City Council finds that a permit appellant is afforded judicial review of
a decision relating to an adult business permit pursuant to California Code of Civil.
Procedure Sections 1094.5 and 1094.6 and that such review is, by experience, prompt.
DD. It is not the intent .of .the City Council in enacting this. ordinance, or any
provision thereof, to condone or legitimize.the distribution of obscene material, and the
Page 10 of 43
Council .recognizes that state law prohibits the distribution of obscene materials. and
expects and encourages law enforcement officials to enforce state obscenity statutes
against such illegal activities'in the City of Grand Terrace,
EE. In prohibiting public nudity in adult.businesses, the City Council does not
intend:to:proscribe the communication of erotic messages or any other communicative
element or activity, but rather only to prevent or reduce the secondary impacts
associated with such public nudity.
�J
FF. The City Council also finds, as a wholly independent basis-, that it has a
substantial public: interest in preserving societal -order and morality, and: that such
interest is furthered by a prohibition on public nudity.
d
GG. The City Council declares that the restrictions imposed pursuant to this
ordinance are part of a regulatory licensing process, and do not constitute a criminal
offense. Notwithstanding any other provisions of the Grand Terrace Municipal Code, '3
the City does not impose a criminal .penalty for violations of the, provisions of this m
ordinance related: to sexual conduct or activities. The City Council adopts these
limitations only as a condition of issuance and:maintenance of an adult business permit a
issued pursuant to the City's Code. o
N
HH.. Nothing 'in-this ordinance is intended to authorize, legalize, or permit the
establishment, operation, or :maintenance of. any business, building, or use which
f� viol;ates any City ordinance or any statute of the -State of California regarding public c
1 nuisances, unlawful or indecent exposure, sexual conduct, lewdness, -obscene or
harmful matter or the exhibition.or public display thereof. .cq
2
II. As provided in the severability clause of: this ordinance, the City Council a
finds that -in the event of invalidation of the permitting requirements in 'this ordinance,
any adult business which. operates in the city-should nonetheless be subject to the 0i
remaining requirements of this ordinance, including but-not limited to the locational and
operational requirements, and the revocation and violation provisions, each of which
would have been adopted independent of the permit issuance provisions.
0
JJ. On June 7, 2012 the City Council adopted an interim urgency ordinance VS
declaring and imposing.:a forty-five (45) day,Citywide moratorium .on the establishment
or expansion of adult businesses, and extended: the interim urgency ordinance by an E
additional ten (10) months and fifteen:(15) days on.July 10, 2012.
. a
KK,, - On April 23, 2013, the City Council adopted an interim urgency ordinance
extending- the City.-wide moratorium on the establishment or expansion of 'adult
businesses, by.an additional twelve (12),months.
SECTION:.2.. On July .23,. 2013, the City Council conducted a duly noticed :public
hearing on the proposed Ordinance at the Grand Terrace Council Chambers located at
Page 11 of 43
22795 Barton Road, Grand Terrace, California 92313, and conducted second reading
on August 13, 2013.
SECTION 3. The City Council hereby finds that this activity is not subject to the
California Environmental Quality Act (CEQA) if the activity will not result in a_ director
reasonably foreseeable indirect physical change in the environment (Section
15061(c)(2)); and where it can be seen with certainty that there is no possibility that the
activity in question may have a significant effect on the environment (Section
16061(b)(3)). The Notice of Exemption has been.reviewed and considered and reflects
the independent judgment of the-City Council, and is hereby adopted. r
SECTION 4: The City Council hereby .adopts .Chapter 5.84 of Title 5 of the Grand
Terrace Municipal Code as follows:
"Chapter 5.84 Adult Business Regulatory License
Sections m'
5.84;010 Purpose
5.84.020 Definitions a
5.84.030 Regulations non-exclusive
5.:84:040 License required r
5:84.050 License application fees
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5.84.060 Application for�an adult business regulatory license G
5.84.070 Investigation of an adult business regulatory license -�
5::84:080 Approval or denial of-an adult business.regulatory license
5.84.090 Transfer of an-adult business regulatory license
5.84.100 Terms of license
5.84.1.10 Re-Application a
5.84.120 Renewals
5.84.130 Suspension or Revocation of Adult Business License
5:84.140 Causes,for Suspension, Revocation or Conditions
5:84.150 Decisionfollowing-a Suspension or Revocation Hearing _
5.84.160 Appeals
5..84.170 , Inspection of Premises
5:84.180 Violations
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a)
Section 5.84:010 Purpose
It is the purpose and intent of this chapter to regulate the operations of adult a
businesses, which tend to have judicially recognized adverse secondary effects on the
community, including, but not limited -to, increases in crime in 'the vicinity of adult
businesses; decreases in property values in the vicinity of adult businesses; increases
in vacancies -in residential and commercial areas in the vicinity of adult businesses;
interference with residential property owners' enjoyment of their: properties when such
properties are located in the vicinity of adult businesses as a result of increases in
crime, litter, noise, and vandalism;- and the deterioration of neighborhoods. Special
-Page 12 of 43
J
regulation of these businesses is necessary to prevent these adverse secondary effects
and the blighting or degradation of the neighborhoods in the vicinity of adult businesses
while at the same time protecting the First Amendment rights of those individuals who
desire to own, operate or patronize adult businesses. .:It is,'therefore, the purpose of this
Chapter to establish reasonable standards for the,licensing of adult businesses.
Section 5.84.020 Definitions
A. "Adult arcade" shall mean a business establishment to which the public is
permitted or, invited' and where coin, card or slug operated or electronically;
electrically .or mechanically controlled devices,: still or motion picture.machines, 2
projectors, videos, holograms, virtual reality devices or other image-producing
devices are maintained to show images on a regular or substantial basis; where C
the images so: displayed are distinguished :or.characterized by an: emphasis on
matter depicting or describing- "specified sexual activities` or "specified
anatomical areas." Such, devices shall;be referred to'as "adult arcade devices:." y
m
B. 'Adult booth/Individual viewing area" shall mean a partitioned or partially
enclosed portion of an adult business used for any of the following purposes: Q
1. Where a live or taped :performance is presented or viewed., where the a
performances and/or images displayed or: presented are distinguished or
characterized by their emphasis: on matter depicting, describing, or CO
relating,to "specified.sexual activities" or."specified anatomical areas;" or LO
2. Where "adult arcade devices" are located.
C. 'Adult business"shall mean:
- as
c.
1. A business establishment or concern that as a regular and substantial
course of conduct sells or distributes "Adult Oriented Material" or "sexually Ui
oriented merchandise", or which offers to its :patrons products,
merchandise, services-or entertainment characterized by an emphasis. on _
matters depicting-,. describing, or:relating to "specified sexual activities" or c
"specified anatomical parts," but not including those. uses or activities
which are preempted by state law; w
c
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2. Any business:establishment or concern which as.a regular and substantial r
course :of conduct performs or operates as an adult -bookstore, adult cc
theater, adult motion picture arcade, adult model studio; adult arcade, a
adult retail store, adult cabaret, adult motel or hotel, adult
modeling/photography studio, adult. motion picture .theater, sex, club,
sexual encounter center, any business .providing adult live: entertainment,
et cetera; or
3. Signs,, advertisements -or an establishment name including verbal or
pictorial .allusions to sexual stimulation or gratification. or by references to
Page 13 of 43
r
"adult," "XXX", or similar terms, shall be considered evidence that the
establishment holds itself out to the public as a sexually oriented business.
D-. "Adult cabaret." shall mean a. business establishment (whether or not serving
alcoholic beverages) that as a regular and substantial course of conduct features
"adult:live entertainment;" persons who.appear in a state of nudity or semi-nude
condition, or which holds itself out to the public where adult live entertainment is
available.
E. "Adult cabaret dancer" shall. mean any person who is an employee' or
independent contractor of'an "adult cabaret" or "adult business" and who, with or `s
without any compensation or other form of consideration_ , :performs as a sexually
oriented dancer, -exotic dancer, stripper:, 'go-go dancer or :similar dancer whose
performance on a regular and substantial basis-focuses on or emphasizes the
adult .cabaret dancer's breasts, genitals, and/or buttocks, but does not .involve d
exposure of "specified anatomical areas" or depicting or engaging in "specified H
sexual activities." "Adult cabaret dancer" does not include a patron. m
F. "Adult hotel/motel" shall mean a "hotel" or "motel" (as -defined in the Zoning a
Code): that is used 'for presenting on a regular and substantial basis images
through closed.circuit television, cable television, still or motion picture machines, N
projectors, videos., holograms, virtual reality devices or other image-producing
devices that are distinguished or characterized by the emphasis on- matter o
depicting or `describing or relating to "specified. sexual activities" or "specified L'
anatomical areas"; and/or rents, leases or lets any room for less than a six hour
period, or rents, leases or lets any single room more than twice in any twenty four
hour.period. �+
d
G. "Adult live entertainmen.'t" 8h6ff mean any physical human body activity, whether
performed or engaged in, alone or with other persons, including but not limited-to
singing, walking, speaking, dancing, acting, posing, simulating, wrestling or
pantomiming, i.h which: (1) 'the, performer or adult cabaret dancer exposes to
public view, without opaque covering,-"specified'anatomical.areas"; and/or (2).the
performance or physical human body activity that depicts., describes, or relates to 0
"specified sexual activities" whether or not the .specified anatomical areas are M
covered:
E
H. "Adult modeling/photography studio"shall mean a.business establishment where
a live person who appears .seminude, in .a state of nudity, or who displays a
specified anatomical areas is provided to be observed, sketched, drawn,
photographed, filmed,, painted, scul.pted',..or otherwise similarly depicted by other
persons, whether or not paying for such services. "Adult modeling studio" does
not include schools maintained pursuant to standards 'set by the Board of
Education of the State of California,! or that of an individual artist studio
established solely for conduct of the artist.
Page 14 of 43
::Racket.Pg.83 _
I. "Adult -motion picture, theater" shall mean a business establishment, with or
without a stage or proscenium, where, on a regular and substantial basis and for
any form of consideration, material is presented: through films, motion pictures,
video cassettes, slides, laser disks, digital videodisks, holograms,. virtual reality
devices, or similar electronically-generated reproductions that is characterized .by
the depiction or description. of "specified sexual activities" or '`specified
anatomical areas."
J. "Adult oriented material' shall mean :accessories, :paraphernalia, books,
J magazines, laser disks, compact discs, digital-video disks, photographs, prints,
drawings, paintings, motion-pictures, pamphlets, videos, slides, tapes, holograms or-
or electronically generated images or devices including computer software, or
any combination thereof-that is distinguished or characterized by.its emphasis on
matter depicting, describing -or relating to "specified sexual. activities" or H
"specified anatomical areas." "Adult oriented material" shall include "sexually d
oriented merchandise." H
m
K. "Adult retail store"shall mean a business establishment having as.:a regular and
substantial portion of its stock in trade, "adult oriented .material" for sale or:rent. Q
Includes a bookstore, video store or store selling adult novelty items.
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L: "Establishment of an adult business" shall mean any of the following:
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1. 'The opening or commencement of any "adult :business" (as defined to -
�' above) as a new business; o
2. The conversion of an existing business, whether or not an "adult I
business," to ahy"adult business;"
a
3.. The addition of any "adult business".to any other-existing "adult business;"
. 1
4. The relocation of any"adult business;" or
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5. Physical changes that expand .the square footage of an existing "adult T
business" by more than ten percent (10%).
M
M. "Licensee" or "License Hold&' shall mean a person in whose name a license to
operate an adult business has been issued, as well-.as.the person listed as an
applicant on an application. for a license; and :in the case of. a performer or c
manager, a person in whose-name a performer-or manager's license has been a
issued authorizing employment in an adult-oriented business.
N. "Manager" shall mean any person designated by the owner or operator of an
adult oriented business to be responsible for the operation of such business-at a
particular location:at a.particular time.
O. "Nudity"or "state of nudity' shall mean the showing;of the human male or female
genitals, pubic area, anus, or buttocks with less than a fully opaque fabric
Page 15 of 43
��_Packet Pg.;84:
1
Covering; the showing .of the female breast with less than-a fully opaque fabric
covering of any part :of the areola; or the showing of completely or opaquely
covered, by fabric, male genitals in a discernibly turgid state
P. "Ownee" shall mean any of the following: (1) the sole proprietor of an adult
business; (2) any general partner of a partnership that :owns and operates an
adult business; (3) the owner of a controlling interest in a corporation or L.L.C.
that owns and operates an adult business; or (4) the person designated by the
officers of a corporation or the members of an L.L.C. to.be the license holder for 1
an adult:business owned and operated by the corporation.
Q. "Performer" shall mean a person who is an employee or independent contractor
of an:adult business or-any other person who, with or without any compensation
or other- form of consideration; provides adult live entertainment or models for
patrons of an "adult business".
c
R. "Regular- and substantial course of conduct" and "regular and substantial portion m
of its business" means any adult business where one or more of the following
conditions exist: Q
1. The business devotes more than fifteen (15) percent or 100 square feet of CO
the retail floor area, whichever is less, to adult oriented material; or
CO
2. The. business or concern presents any type of live entertainment
characterized by an emphasis on specified sexual activity or specified anatomical
parts, or performers, models or employees appearing in public dressed only in
CO
lingerie; or
3. At least twenty-five percent of the gross receipts of the business are a
derived from the.sale, trade, rental, display or presentation of services, products,
adult material, or entertainment which are characterized by an emphasis on I
matter depicting, describing, or. relating to specified sexual activities or specified 0
anatomical areas. c
'Ea
S. "Religious facility shall mean a permanent facility exclusively.used on a regular G
basis for religious assembly, such as customarily..occurs in a synagogue, temple, C4
mosque, or church, or convent, or monastery. d
E
T. "School' shall mean any child care facility or an institution of learning for minors, o
whether public or private, which offers instruction in those courses of study a
required by the California Education Code or which is maintained pursuant to
standards set by the State Board of Education. This definition includes a nursery
school, kindergarten, elementary school, junior high.school, senior high school or
any special institution of education, but it does not include a vocational. or
professional institution: of higher education, including a community -or junior
college, college-or university
Page 16 of 43
.Packet"Pg.._85�
J
Y'
U. "Semi-nude" or in a "semi-nude condition" shall mean a state of dress in which
clothing covers no more than the genitals, pubic region, .and areola or nipple of
the female breast. This definition includes the entire lower portion of the human
female breast.'
V. "Sex Club" shall mean- any establishment not primarily dedicated to .providing
overnight lodging accommodations, including a private club that permits persons
to engage in specified sexual activities in any public or semipublic portion of the
establishment or which:provides any private room to persons more than once:in
a twenty hour period in which persons are permitted to engage in specified
sexual activities. For the purpose-of this section., a "public or semipublic portion of o
an establishment" shall mean any portion of the establishment in which
licensees, invitees, visitors or guests-of the establishment or its members are d
permitted access and which islet, leased or rented more than once in a twenty- y
hour period to -persons who are entitled to exclusive use of the room. The above d
notwithstanding, a "sex .club" is also any place which represents itself to any N
person or group of persons as-a place for persons to'engage in specified sexual m'
activities.
a
W. "Sexual encounter center" shall mean.a business or enterprise that offers for any
Co
form of consideration physical contact in the form of wrestling :or tumbling N
between-two or more.-persons, when one or more of the persons is in a state of
nudity or semi-nudity: o
to
V
X, "Sexually Oriented Merchandise" shall mean; C
CR
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1.. Sexually oriented implements, .paraphernalia, or novelty items, such as,
IA
but not limited to: -dildos, auto sucks, sexually oriented vibrators, benwa balls,
inflatable orifices, anatomical -balloons with orifices, simulated and. battery C
operated vaginas, and similar sexually :oriented devices. which are designed or :0
marketed primarily for the stimulation. of human genital organs or 01
sado-masochistic activity or distinguished or characterized by their emphasis on
matter depicting, describing or relating to "specified sexual activities" or
"specified anatomical areas"; or o
co
2. Lingerie presented in combination with other merchandise contained
within this definition or the definition of adult oriented material; leather goods E
marketed or presented in a context to suggest their use for sadomasochistic
practices; or condoms or sexual lubricants presented in combination: with other a
merchandise contained within this definition or the definition of adult oriented
material.
Y: "Specified Anatomical Areas" shall mean and include any of the following:
1. Less than completely and opaquely covered, and/or simulated to be
reasonably anatomically correct,. even if completely and opaquely covered
human:
Page 17 of 43
a. genitals, pubic region;
b. buttocks, anus; or
C. female breasts below a point immediately above the top of the
areola; or
2. Human male genitals in a discernibly turgid state, even if completely or
opaquely covered.Z. "Specified criminal activity' shall mean any of the:following offenses: c
�o
1. Prostitution or promotion of prostitution; dissemination of obscenity; .sale, A
distribution or display of harmful material to a minor; sexual performance
involving a child; possession or distribution of child pornography; public H
lewdness; indecent exposure; indecency with a child; engaging :in c
organized criminal activity;. sexual assault;. molestation of a child; z
gambling; distribution -of a controlled substance; state penal code; or any m
similaroffenses to those described in this subsection under the criminal or M
penal code of other states or countries; a
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2. For which: CM
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.a. Less than two.years have elapsed since the date of conviction or the 9q
date of release from confinement imposed for the conviction,
Whichever is the later date, if the conviction is fora misdemeanor Q_
offense; CR
b: Less than five years have elapsed since'the date of conviction or the a
date of release from confinement for the conviction, whichever is the =
later date, if the conviction is of a:felony offense, or 01
- - d
c. Less than five years:have elapsed since the date of the=last conviction
or, the date of release from confinement for,the last conviction,
whichever is the later date, -if the convictions are of two or more G
misdemeanor offenses or combination of misdemeanor offenses
occurring within any 24-month period.
E
3. The fact that a conviction is being appealed shall have no effect on the
disqualification of the applicant. a
AA. "Specified Sexual Activities" shall mean and include'-any of the following,
irrespective of whether performed directly or indirectly through clothing or other
covering:
1. Human genitals in a state of sexual stimulation or arousal; and/or
2. Acts of human masturbation, sexual stimulation or arousal; and/or
-Page 18 of 43
- 'Packet,Pg.:87..-
3. Use of human or animal -ejaculation, -sodomy, oral- copulation, coitus or
masturbation; and/or
4. Masochism, erotic or sexually oriented torture, beating, or the. infliction of
pain, or bondage and/or restraints; and/or
5. Human .excretion, urination, menstruation,vaginal or anal irrigation; and/or
& Fondling or other erotic touching.of human genitals, pubic region, buttock,
or female breast. N
0
Section 5..8.4:030 Regulations Non-Exclusive
.m
The provisions of this chapter regulating adult businesses are not intended to be-
exclusive, and compliance therewith shall not excuse: non-compliance: with any other y
provisions of,the Grand Terrace Municipal Code and/or any other regulations.pertaining c
to the operation of businesses as adopted by the:city council. m -
Section 5.84.040,License required
a
A. All adult businesses are subject to the adult business regulatory license CO
requirements of this chapter as well .as all other applicable ordinances. of the city,
county, and laws of the State of California CO
pq
B. It shall be unlawful for any person to establish, operate, engage in, conduct, or
carry on any adult business within 'the: City of Grand Terrace unless the person first
obtains, and continues to maintain in full force and effect, an adult:business regulatory CR
license as required in this chapter. Any occurrence. of the "establishment .of an adult
business", as .define-.d in this chapter; shall require. a new application for an adult a
business regulatory license. s
v
C. - It shall be prima facie evidence that an adult business has not obtained an adult
.business regulatory license if such :business fails to post the adult business regulatory
license in the manner required:herein. a
0
E: A conditional use permit, if required, must be obtained and inaugurated before a
license application is accepted. d
E
- s
Section 5.84.050 License application fees
a
No application shall be processed without the required application:fee paid in full at the
time of application submission.
Section 5.84.060 Application for an adult business regulatory license
A. All applications for an adult business regulatory license shall -be -made with the
Grand Terrace community development department-,-except that sex. clubs shall be
prohibited-within the City of Grand Terrace.
Page 19 of 43
B. The fact that-a license applicant possesses other types-of city licenses does not
exempt the applicant from the requirement of obtaining an adult :business regulatory
license.
C. At the time of application for an adult business regulatory license the license
applicant-shall obtain a "Request for Live Scan Service" form or similar form from the
community development department and shall have live scan fingerprinting conducted
by an authorized live scan service. The license applicant shall bear all costs associated
with the :completion of a .California Department of Justice and Federal Bureau .of -�
Investigation background check.
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D. All applicants shall file a complete; application on a form provided by the
community development department. Such .application shall .contain the :following
information and/or be accompanied by the following documents:
N
V,
1. The applicant's legal name, any aliases, mailing address for -receipt of N
notices, home -address, home and office telephone numbers, occupation, date and m'
place of birth, driver's license number, social security-number, and state issued tax =
identification number; a
2. Written proof that the applicant is at least 18 years of age; o
3. If the applicant is an entity other than an individual',. each individual who o
has a ten -(10) percent or greater.interest in the entity proposing-to own and/or operate L;
the business must:provide the,same information as the individual applicant and sign the
license application as an applicant. In addition:
LO
a. If the applicant is a corporation, the corporation shall state its
complete name, the date of its 'incorporation, evidence that the corporation is in good a
standing under the laws of the state, the names and .capacity of all officers and
directors, and the name of the registered corporate agent and the address of the d�
registered office for:service or process; or
b. If the license applicant is a .partnership, the partners shall state the o
partnership's complete name, address, the names of all partners, and whether the M
partnership is general or limited; and'shall attach a copy of'the partners hip.,agreement, if
_
,any; E
4. A recent photograph of the.applicant(s);
Q
5. A description of the type of adult business for which the license is
requested and the proposed address where the adult business will operate;
6. If the property owner is other than .the applicant, the'name of the-property
owner and a. notarized statement signed by the property owner stating that applicant
has entered into a contract to acquire, lease or otherwise control the.site or structure for
use as an adult business;
Page-20 of 43
Packet,;Pg:89.
7. If the license applicant intends to operate the adult business under a name
other than that of the license applicant, the license applicant shall file the fictitious.name
of the adult business and show proof of registration of the fictitious name;
8. Whether the applicant has been convicted of a specified criminal activity,
as defined in this chapter, and, if so, the specified criminal activity involved and the
date, place, and jurisdiction of each. The City shall verify this through a criminal
background check which shall be conducted at the- applicant's expense prior to
issuance.and/or renewal of the license;
9. Whether the applicant has ever had a license previously issued under this. �
chapter or the predecessor to this chapter or other similar adult business ordinances
.from another city or .county denied, suspended or revoked, including the name -and
location of the adult business for which the license was denied, suspended or revoked,
as well as .the date of the denial, suspension or revocation; and. whether the applicant
has been a partner in a partnership or an. officer.; director or principal stockholder of a •�,
corporation that is licensed under this chapter or the predecessor to this chapter whose m'
license has previously been denied, suspended or revoked, including :the:'name and
location of the adult business for which the license was denied, suspended or revoked a
as well as the date of denial, suspension.or revocation;
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10. Whether the applicant holds any other licenses under this chapter, or its
predecessor., or other similar adult business ordinance from :another city or county:and,
if so, the names and locations of such other licensed businesses; V
i c
11. A sketch or diagram showing the interior configuration of the premises, o
including a statement of the total floor area occupied by the adult-business. The sketch E
or diagram need not be professionally.,prepared but must be oriented to the north or w
some other designated street.or object and drawn to a designated scale or drawn with
marked dimensions of the interior of the premises to an accuracy of plus or minus :six
(6) inches. Any modification to the diagram shall be submitted prior to commencement
of any construction,..or occupancy of the:structure if construction is not proposed; and
-12, A statement signed under penalty of perjury by the applicant that -the. 0
applicant has personal knowledge of the information contained in the application and M
that the information contained therein is true and correct; that the applicant grants
permission: to the city to perform any necessary background checks on persons or E
businesses listed on the application; and that the applicant has read all provisions of the
Grand Terrace Municipal Code regulating adult businesses. a
E. Notwithstanding the fact that an application .filed hereunder may be-a public
record under Government Code Section 6250 et seq., certain portions of such
application contain information vital to the effective administration and enforcement of
the licensing and/or permit scheme established in:this section which is personal, private,
confidential, or the .disclosure of which could expose the applicant to a risk of harm.
Such information includes,_but is not limited to, the applicant's residence,address and
Page 21 of 43
•'PacketlPg_.'90
telephone number, the applicant's date of birth and/or age, the applicant's driver's
license and/or Social Security Number, and/or personal financial data.
The City Council in adopting the application and licensing and/or permit system
set forth in: this section ,has determined in accordance with Government Code Section
6255 that the public interest iri'disclosure of-the information ,set forth in this section is
outweighed by the public interest in achieving compliance with this chapter by ensuring
that the applicant's privacy, confidentiality, or ,security interests are protected. The
community- development director shall cause: to be obliterated :from any copy -of a
completed license application made .available to any member of the public, the
information set forth in this section. c
Section 5:84.070,Investigation of an adult business regulatory license
N
A. The completeness of an application for an adult business regulatory license shall d
be determined by the community development director within five (5) city business days 3
of the date of receipt of the application. if the community development director m
determines that the application is incomplete, the community development director shall
immediately notify in Writing the applicant of such fact and the reasons therefore, a
including any additional information.necessary to render the application complete. 'Suchco
writing shall be deposited in the U.S. mail, postage prepaid, immediately upon
determination that the application is incomplete. The applicant shall have ten (10)
calendar:days from the date of.the notice to submit additional.information to render the
application complete. The applicant's failure to submit the additional information within LO
this :time period. renders the application null .and void. Within five (5) city business days
following the receipt of a supplemental or amended application, the community C
development director shall again determine Whether -the application is complete. N
Evaluation and notification shall occur as provided .in this subsection until such time as a
the application 'is found to be complete. Once the application is found to'be complete, _
the applicant shall be notified within five (5) city business days of that fact. If an
applicant submits two consecutive incomplete applications, the applicant shall be
notified in writing that:a new application must be filed With the community development c
director as set forth in this chapter.
0
-Be Upon receipt of a complete application, the community development director M
41
shall immediately transmit a copy of the application to the appropriate reviewing
agencies. Not later than fifteen (15) calendar .days from the,.date the application is E
determined to be co'rnplete; the aforementioned reviewing agencies shall report the
results of their investigation to the community development.director. a
C. Notwithstanding any-provisions in this section regarding ,the occurrence of any
action within a specified period of time, the applicant -may request additional time
beyond that provided for in this section or may request a continuance regarding any
decision or consideration by the city of the pending application, Extensions of time
sought by an applicant shall not be considered a delay on the part of the city or
constitute failure.by the city to provide for prompt decisions on applications. _
Page 22 of 43
- Packet:Pg:�91
D. Within twenty (20) city business days from the date the application is determined
to be complete, the community development director shall approve or deny the
application in accordance with this chapter, and so notify the applicant as follows:
1.. The community -development director shall write or stamp "Approved" or
"Denied" on the application and date and sign such notation.
2.. If the, application is denied, the community development director shall
attach to the application a statement of the reasons for the denial,
3. If the application is approved, the community development director shall o
attach to the application an adult business regulatory license.
a�
4. The documents specified in subsections D(1), (2) and 3) of this section 12
shall be deposited.:iin the United States mail, first class-postage prepaid, addressed to
the applicant at the address specified in the .application. All notices given under this .__
subsection shall be-deemed given upon the date they are_deposited in the United States m
mail. =
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F. The.issuance of the license shall be subject to approval-of any pending decision a
on a conditional use permit required by the zoning code pursuant to Chapter 18.83 0
Conditional Use Permits or any appeal:taken from such:decision, and .shall not become
________.effective unless-and.until thee_Conditional_Use_Permit is granted.,__
L6
G. If the community development director is unable to act on the application within c
the required time period following a determination of completeness, the 'director.shall le
notify the applicant in writing' and issue a provisional license,. which shall expire
following approval -or denial of the application and final disposition of any appeal �
proceedings as provided in this chapter. The provisions,of this chapter shall fully apply C
to a provisional license.
d�
Section 5.84.080 Approval or denial of an adult business regulatory license a
� c
A. The community development director shall approve: the issuance of a regular o
license to an applicant, unless it:is determined by a preponderance of the evidence that M
any one of the following findings is truer
d
E
1. The applicant is under eighteen (18) years of age, unless alcoholic
beverages are to be served on premises, then the applicant is under twenty-one (21)' a
years of age subject to Alcoholic Beverage Control ("ABC') regulations.
2. An applicant has failed to provide information reasonably necessary for
issuance .of the license or gave false, fraudulent or untruthful information on the
application form.
3. An applicant has been :denied a license bey:the city to. operate an adult-
oriented business within the 12,months preceding.the filing of the application.
Page 23 of 43
4. The applicant has been convicted of a specified- criminal activity, as
defined in this chapter, either within the state or in another jurisdiction.
5. The applicant has, within the past five years, been convicted in an
administrative enforcement action or court action of violating an adult-oriented business
ordinance;
6. The applicant has had an adult oriented business license, or comparable
license, of'ahy type revoked within the past five (5) years or one suspended within the
past three (3) years, immediately preceding the date of application; the fact that the 'r
applicant has appealed such action shall have no effect on the disqualification of the c
application;
a�
7. The adult business does not comply with the.city's zoning requirements as
to its underlying zoning designation and other location requirements of city codes.
8. The license fee required by this chapter has not been paid. m
B. The approved adult business regulatory license shall be posted in a conspicuous Q
place at or near the adult business's entrance so that it may be easily read at any time. ..
00
oD
Section 5.84.090 Transfer of an adult business regulatory license CM
Co
CR
A. It is a violation of this chapter for a licensee to operate an adult oriented business
under the authority of an adult business regulatory license at any place other than the
address-of the adult oriented business stated in the application upon which the license
CR
was issued.
B. It is a violation,of this chapter for a licensee to transfer ownership or control of an
adult business regulatory license to another person or entity unless and until the
transferee first provides the community development director the information as set forth d�
in this chapter at least thirty (30)-days,prior to the-transfer. The community development c
director shall review the application in accordance with this chapter. 5
a
L
C. It is a violation of this chapter for a licensee to transfer an. adult business M
regulatory license when the community development director has notified the licensee
that the license has been suspended or revoked or that such action is pending. 0
D. Any attempt. to transfer a license either directly or indirectly in violation of this Q
section is void, and the license shall be deemed revoked.
Section 5.84.100 Terms of license
A. A license issued under this chapter shall be issued for a period of one (1) year
and is required to be renewed annually.
B. A license issued under this chapter shall expire on the last day of the calendar
month. during which the licenses was issued or renewed during the previous year.
Page 24 of 43
:Packet P9.:93
C. The license, if granted, shall state on its face the name of the-person to whom it
is granted, the expiration date, .the address of the adult business and the classification
of:adult business for which the license.is issued.
D. Within. 30 calendar days of any change in the information. originally submitted
with the license application, a'license holder shall provide the community development
director with a Written statement supplementing or amending the information required by
this chapter.. Failure to submit such changes shall be grounds for suspension of the
license.
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Section 5.84.110 Re-Application 0
w
A permitte'e, applicant or -substantially related entity wherein 'the new application is
made by an individual or previous entity exercising ownership., management or �
N
oversight or control of the adult business, cannot re-apply for an adult business d
regulatory license for a particular location within one (1) year from the date of prior H
denial.
m
Section 5.84.120 Renewals a
A. A license may only be renewed by 'the licensee's filing with the community
CM
.development department a written request for renewal on a form provided by the city,
accompanied by a nonrefundable application licensing fee set forth in the schedule of co
fees established from time:to-time by the city council, and a copy of the license. to :be
renewed.
B. The: request for renewal'shall be made.at least thirty (30) calendar days before o
the expiration date of the regular license, -and the information required in section N
5.84.060 of this chapter shall be provided. When a renewal request is made less than
thirty (30) calendar days before the expiration date, the expiration shall-not be stayed.
C. The community development director shall act upon applications for license
renewal as provided for in applications for licenses:
._
D. A licensee subject to denial of a renewal application shall have the right to-appeal 2
the suspension or revocation under the procedures provided-in this chapter. 0
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'Section 5.84.130 Suspension or Revocation
E
A. On determining that grounds for license suspension or revocation exist, the
community development director shall furnish written notice of the proposed suspension a
or revocation to the license holder. Such notice. shall set forth the time and place of a
hearing and the,ground or grounds upon which,the hearing is based, the pertinent code
sections, and a brief statement of the factual matters in support thereof. The notice
shall be mailed, postage prepaid, addressed to the last known address of the license
holder:, or shall be delivered to the license holder personally; at least ten (10) days prior
to the hearing- date. Hearings pursuant to this section shall be conducted by the
community development director or his/her designee,-which may include a third party
hearing officer. Hearings pursuant to this section shall be conducted in accordance with
Page 25 of 43
_,•,FacketAPg�94�.
procedures established by the community development director, at a minimum, shall
include the.following:
1. All-parties involved shall have the right to:offer testimonial,. documentary,
and tangible evidence bearing upon the issues.and may be represented by counsel.
2. The community development director or, his/her designee shall not be
bound by the formal rules of evidence.
3. Any hearing under this section may be continued-for a reasonable time for r�
the convenience of a party or a witness_at the request of the license holder. Extensions o
of time or continuances sought by a license holder shall not be considered a delay on
the part of the City or constitute failure by the City to provide for-prompt decisions on :d
license suspensions or. revocations.
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N
4: The decision of the community development director or his/her designee
may be appealed in accordance with this chapter. m
B. The community development director may suspend and order an adult business Q
closed pending a suspension or revocation hearing if he or she determines that the
closure is necessary to protect the public health and safety. o
N
Section 5.84.140 Causes for.Suspension, Revocation or Conditions
A. A license may be suspended, -revoked or conditions may be imposed on a
license based on any one of the following .causes arising from the acts-or omissions of
the license holder, or an: employee, independent contractor, partner, director, .or CR
manager of the-license holder:
12
1. Licensee operated the adult business or allowed the performance of adult
live entertainment in a location not approved for such activity;
2. The license is being used to conduct an activity different: from that for
which the license was approved; c
3.' Licensee did not provide a written statement supplementing or amending o
the information of.the license application=as required by this chapter; "'
4. Licensee violated any requirement of the Zoning -Code related to the
regulation of adult businesses;
5. Licensee refused city or other governmental agency access to the a
premises and records;
6. Licensee allowed a person under the age of eighteen (18) years in or on
the premises; `
7. 'Licensee reconfigured the interior of the premises without approval from
the City;
Page 26 of 43
-;: PacketjP,g;95,
8. Licensee demonstrated an inability to operate or manage the business in
a peaceful: and law-abiding manner thus necessitating action by law enforcement
officers;
9. Licensee violated- any of the "standards of conduct and operation"
contained in chapter 18.70 of the municipal code.
10. The licensee's license has been suspended more than once;
11. The licensed business was .operated during a period of time when the
1 license was suspended; _
0
12. The building, structure, equipment, or location used by the adult.business
fails to comply with all provisions of these:regulations and this section relating to adult
.businesses, including the adult business operational standards contained: in Chapter
18.70 of the .Municipal Code, and all other.applicable building, fire, electrical, plumbing,
health, and zoning requirements of the Grand Terrace Municipal Code;
m
13. The license holder has failed to obtain or.maintain all required city, county =
and/or state licenses; a
14. The license holder has made any false, misleading, or fraudulent o
-statement of material.fact in the application for an adult.business license;:
0
15. Licensee transferred, or attempted to transfer, :a license issued under this
chapter to another person or entity; _
1 M
16. The licensee or an individual employed by, .or performing in, the adult oho
business (whether classified as .an employee or independent contractor) has been
convicted of sex-related offenses that occurred in or on the licensed premises and was a
employed by, or performing in, the adult business at the time the offenses "were s
committed;
a�
17. That the:use for which the approval was granted has ceased to exist or
has been suspended for six (6) months or more;
0
18. That the transferee/new owner of an adult business or adult business M
license failed to comply with the requirements of this Chapter; d
E
19. The licensee, partner, director, or manager has knowingly- allowed or
permitted, or has failed to make a reasonable effort to prevent the occurrence of any of a
the following on the premises of the adult business; or a licensee has been convicted of
violating any-of the following state laws on the premises of the adult business:
a. Any -act of unlawful sexual intercourse, sodomy, oral copulation, or
masturbation.
b. Use of the establishment as a place where unlawful solicitations for sexual
intercourse, sodomy, oral copulation, or masturbation openly occur.
Page 27 of 43
�Pkkef,P,g:,-96
C. Any conduct constituting a criminal offense which. requires registration
under Section. 290 of the California Penal Code.
d. The occurrence of acts.of lewdness, assignation, or prostitution, including
any conduct constituting violations of Sections 315, 316, 318 -or subdivision- (b) of
Section 647b of the California Penal Code:
e. Any act constituting,a violation of provisions in the California Penal Code
relating to obscene matter or distribution of harmful matter to minors, including, but not
limited to Sections 311 through 313.4.
f. Any act constituting a felony involving the .sale; .use, possession, or
possession for sale,of any controlled substance specified in Sections 11054, 11055,
110.56, 11057,-or 11:058 of the California.Health & Safety Code. W
N
N
g. An act or omission in violation of any of the requirements of this chapter if
such act or omission is with the knowledge, authorization, or approval of the license
holder or is as a result of the license holder's negligent:supervision of the..employees or m
independent contractors of the adult business. This includes the allowance of activities a
that are or:become a public nuisance which includes the disruptive conduct of.business
patrons whether on or immediately off the premises where such patrons. disturb the o
peace, obstruct traffic, damage property, engage in criminal conduct, violate the law and
otherwise impair the free enjoyment of life and.property; or CO
W
20. The Conditional Use Permit for the adult business has been.revoked.
Q
Section 5.84.150 Decision following a Suspension or Revocation Hearing
A. After holding the hearing in accordance with:the provisions of:this chapter, if the a
community development director or his or her designee finds and determines that there _
are grounds for suspension, revocation or the. addition of conditions, the community d�
development director shall impose one of the following:.
C
1. Suspension of the license for a specified period not to exceed six (6)
months; o
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2. Revocation of the license; or d
E
3. The addition of reasonable conditions necessary to permit the adult
business to continue #o operate in a manner that would eliminate the. grounds for a'
suspension or revocation that have been found'to exist.
B. The community development director shall render a written decision that shall be:
hand delivered or overnight mailed to the license holder within five (5) business days of
the public:.hearing.
C. In the event:a license is revoked pursuant to this:section, another,adult business
regulatory license to operate an adult business shall not be granted to the licensee or
Page 28 of 43
Packet Pg.97
an entity related to the licensee- within. twelve (12) months after-the date of such
revocation.
D: A licensee subject to suspension.:or revocation shall have the right to appeal the
suspension or revocation underthe procedures provided in this chapter.
E: A licensee that has had a. license revoked shall be subject to the same license
criteria required of-any applicant applying for a new:license.
Section 5.84;170 Appeals
N
A. After approval,..denial, suspension or revocation of.a license, any affected person °
may appeal the decision. by :filing a written petition with the city clerk requesting a
hearing on the denial, suspension, or revocation of the license within fifteen (15) V
calendar days of the date of the community development director's decision. The city N
council shall serve as the appeals board. The appeal shall be scheduled within twenty
(20) calendar days of the date. the petition is received in the office of the city clerk. The .3
city clerk shall give written notice to the applicant of the time and place for the hearing m
on the applicant's appeal at least ten (1.0) calendar days prior to the scheduled date of 3
hearing. a
00
B: During the appeal of a license denial, suspension; or revocation,: theapplicant N
shall be permitted to operate with a provisional license until the final disposition of the
eo
appeal proceedings before the. City Council. The provisions of: this chapter shalt fully IR
apply to a provisional license.
C
C. Consideration of an appeal of the decision shall be at a public hearing and whichCO
hearing shall.occur within.thirty(30) days of the filing or initiation of the appeal. H
d
D. The city council's action on the appeal of the decision shall be-by a majority vote a
of the members present and,upon the conclusion of the de novo public hearing, the city
council shall grant or deny the appeal. The city council's decision shall be final -and vi conclusive and shall be rendered-to the licensee in writing, by registered or certified mail a
within ten (10) city business days of the hearing. a
' o
E: In reaching its decision, the city council shall not be bound by the formal rules of CO
evidence.
d
F. Notwithstanding any provisions .in this section regarding the .occurrence of any
action within a specified period of time, the applicant may request additional time
'beyond that provided for in this section or may request a continuance regarding .any a
decision or consideration by the city of the pending appeal. Extensions of time sought
by applicants shall not be considered:delay on the,part of the city or constitute failure by
the city to provide forprompt decisions on applications.
G. Failure of the city clerk to render a decision to grant or deny an appeal of a
license denial within the time frames_ established: by this. section shall .be deemed to
constitute a denial of the license.
Page 29 of 43
Packet
H: The time for a court challenge to a decision of the city council is governed by
California Code of Civil Procedure § 1094.8.
I.. -Notice of the city council's .decision and its :findings shall include citation to
California Code of Civil Procedure § 1094.8.
J. Any applicant or license holder whose license has been denied pursuant to this
Section shall be afforded prompt judicial review of that decision as -provided by
California Code of Civil Procedure § 1094.8.
Section 5.84.170 Inspection of Premises c
Each owner, operator, manager, employee or independent contractor of an- adult
business or other person in charge of an adult business-shall permit representatives of
the community development department, including_ City Planning, Building and Safetyi N
and Code _Compliance Divisions, county sheriffs department, and county fire =
department; to inspect those portions of the adult business open to the public- or to �
portions of the public; -for the pu'pose of insuring compliance with operating standards 0°
of this Chapter applicable to adult businesses at any time- it is occupied or open for
business, as well as to inspect; for compliance with the provisions of this Chapter, those a
portions of'the adult.business that may not be open to the public, but only as to those
portions directly relating to operating and regulatory provisions :applicable to the
licenses issued pursuant to this chapter, such as recording equipment for required CO
security cameras. Such inspections shall be conducted in a reasonable manner,-such Cq;
that the inspection minimizes any interference with or.delay of business operations, as
reasonably practicable to the purposes of the inspection; shall be conducted by the
City's Code Enforcement Manager, designee, .or,other City employee charged with the
LO
responsibility of monitoring compliance of adult businesses with this Chapter; and shall
only be conducted as necessary to :i:'sure compliance :with the regulatory provisions of a
this Chapter relating to adult, business and/or performer permits and licenses. Nothing
in this section shall permit or authorize warrantless searches of property on the ail
premises, except as otherwise permitted by law. _
Section 5.84.180 Violations
0
Any adult-oriented business established, operated, or maintained contrary to the ji
provisions of this chapter is unlawful and a public nuisance; and the City Attorney may E
commence an.action.or actions, proceeding or proceedings for the abatement, removal,
and enjoinment thereof in the manner provided by law,, and shall take such other steps a
and shall apply to such.court or courts as ma.y have jurisdiction to grant such relief as
will abate or remove such adult-oriented business and restrain and enjoin any person
from; establishing, operating, or maintaining an adult-oriented business contrary to the
provisions of this chapter or such other laws."
SECTION 5. The City Council hereby adopts Chapter 5.88 of Title 5 of the Grand
Terrace Municipal Code-as follows:
Page 30 of 43
',' Packet Pg:99
"Chapter 5.88 Adult Business Manager and.Performer License
Sections
5:84,10 Purpose-
5.88.020 Definitions
5.88.030'. Regulations non-exclusive
5;88.040 License required
5:88.050 License application fees
5.88.0.60, Application for a manager or entertainer license
5.88.070 Investigation of a manager or entertainer's license
5.:88.080 Approval or denial of a::manager or entertainer license s
5.88.090 Transfer of a manager or entertainer's license
5.88.100 Terms of license
5..88.110 Re-Application y
5:88.120 Renewals d
5.88.130 - Suspension or Revocation y
5.:88.140 Causes for Suspension,.Revocation or Conditions m
5:88:150 Decision following a Suspension or Revocation Hearing
5.88.160 Appeals Q
5..88.170 Violations
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Section 5.88:010'Purpose
CO-
It is the purpose and intent of this- chapter to regulate the operations of adult
businesses, which tend to have: widely .and judicially recognized_adverse secondary
effects on the community and the public, including, but not limited to, increases in crime
in the vicinity of adult businesses; decreases ih property values in the vicinity of adult L
businesses; increases-in vacancies in:residential and commercial areas.in the vicinity of
adult businesses; 'interference with residential property owners.' enjoyment of their
properties when such properties are located :in the vicinity of adult businesses":as a
result of increases in crime, litter, noise, and vandalism; and the deterioration of
neighborhoods adjacent to adult businesses. Special regulation, of these businesses isCO
necessary'to prevent these adverse secondary effects and the-blighting or degradation
of the neighborhoods in the vicinity of adult businesses while at the same time 0
protecting the First Amendment rights of:those individuals:who desire to own-; operate or
patronize adult businesses.
E
Section 5.88.020 Definitions
The definitions contained. in: Section 5.88.02.0 of Chapter 6.88 of the Grand Terrace
Municipal Code shall apply, including the following definitions, which are reprinted here
for convenient reference:
BB. "Adult'live entertainmenf.' shall mean any.physical human body activity., whether
performed-or engaged in, alone or with other persons, 'including but not limited to
singing, walking, speaking, dancing, acting, posing, simulating, wrestling or
pantomiming, in which:. (1) the performer or adult cabaret dancer exposes to
Page 31 of 43
���Packet�=,P:g:1po
public view, without opaque covering, "specified anatomical.areas"; and/or (2).the
performance or physical human body activity that depicts,,.describes, or relates to
"specified sexual activities" whether or not the "specified anatomical areas" are
covered.
CC. "Adult modeling/photography studio"shall mean a business establishment'where
a live person who appears- seminude, in a state of nudity, or who displays
specified anatomical areas is `provided to be observed; sketched; drawn,
photographed, filmed,_painted, sculpted, or otherwise similarly depicted by:other -
persons,. whether or not paying for such services. "Adult modeling studio" does
not include schools maintained -pursuant to standards set by the Board of
Education of the State. of California, or that of an individual artist studio
established solely for conduct of the artist.
DD. "Licensee"'or "License Holder" shall mean a person in whose name a license to
operate an adult.business has been issued, as well as,-the person listed.-as an y
applicant on an application for a license; and in the case of a performer or m
manager, a person in whose name a performer or manager's license has been
issued authorizing employment in an adult oriented business. a
EE: Wanag&' shall mean any person designated by the owner or operator of an CO
adult oriented business to be responsible for the operation of such business at a
particular location at a particular time. CO
FF. "Performee' shall mean a person :who is an employee or independent contractor
of an.adult business or any other person who, with or without any compensation
or -other form of consideration, provides adult-live entertainment or models for Ln
patrons of an, "adult business".
D
a
GG. "Specified criminal activity' shall mean any-of the following:offenses:
1. Prostitution or promotion of prostitution; dissemination of obscenity; sale,
distribution or display of harmful material to a minor; sexual performance c
involving a child; possession or distribution of child pornography; public o
lewdness; indecent exposure; indecency -with a child; engaging in M
organized criminal. activity; sexual assault; molestation of a child;
gambling; distribution of a controlled substance; state penal code; or any E -
similar offenses to those described in this subsection under the criminal or
penal:code of other states.or countries;
- a
2. For which'
a. Less :than two years have elapsed since the date of conviction or the
date of release from confinement imposed for the conviction,
whichever is :the later date, if the conviction is for a misdemeanor
offense;
Page 32 of 43
- __.Packet�Pg101
s`,6 A;c
b. Less than five years have elapsed since the date of conviction or the
date of release from confinement for the conviction, whichever is the
later date, if the conviction is of a felony offense; or
c. Less than five years have elapsed since the date.of the last conviction
or the date of release from confinement 'for the last conviction,.
whichever is the later date, if the-convictions are of two or more
misdemeanor offenses or combination .of misdemeanor, offenses
r .t occurring within any 24-month period.
H
3. The fact that a conviction: is being appealed shall have no-effect on the c
w
disqualification of the applicant., t0
tM
Section 5.88.030 Regulations Non-Exclusive W
N
The provisions of this chapter regulating adult business managers.and performers are s
not intended to - be exclusive, and compliance therewith shall not excuse m
non-compliance with any other provisions of the Grand Terrace Municipal Code and/or =
any other regulations pertaining to the operation of businesses as adopted by the city a
council.. ••
CO
o�
Section 5..88.040 License required N
CO
A. It shall be. unlawful for any person to manage or perform within any adult W
business within the City of Grand-Terrace unless the person first obtains,. and continues =
to maintain in full force.and effect, an adult business manager or performer license as .t
provided in this chapter. CR
12
B, It shall be unlawful for any person to perform any work, service or entertainment a
directly related to the operation of an unlicensed adult business.
i
C: It shall be prima facie evidence that any person who conducts any business.,
service or performs in an adult oriented business had knowledge that such business c
was not licensed if the adult oriented business regulatory license is not posted in the -E
manner required herein. o
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Section'5.88.050 License application fees d
E
A: Every manager or performer of: an adult business shall pay a license fee or
license renewal fee as determined by resolution of the city council, as provided it! a
Chapter-5.04 of this title.
B. No application shall be processed without the required application fee paid in full
at the.time of application submission.
Page 33 of 43
.�'Facket'Pg�102
Section 5.88.060 Application for a manager or performer license
A: All applications for a manager or performer license related to an adult business
shall be.made with the Grand Terrace-community development department.
B, No application for a manager or performer license shall: be accepted by the
community development department prior to licensing_ of the adult business for which
the manager or performer license is applicable.
C. At the time of application for an adult business manager-or,performer license, the ,y
license applicant shall obtain a `Request for Live, Scan Service" form or similar form o
from the community development department and shall have live scan fingerprinting
conducted by-an authorized live scan service. The license applicant shall bear all:costs
associated with the completion of a :California Department of Justice and Federal
Bureau of Investigation background check, and shall be responsible for,providing proof
of payment and processing.of such form, before the time shall run for the processing by
the City of the application for an adult business manager or performer license.
m
D. All completed applications for a manager.or performer license related to an adult a
oriented business shall provide the following information:
co
o�
1. The applicant's legal name, any aliases, mailing address: for receipt of
notices, home address, home and office telephone numbers, occupation, date- 'and .00
place of birth, driver's license number, social security number -and state issued tax
identification number;
2. Written proof that the applicant is at least 18 years of age;
N
3. Identify whether the:application is for a manager or performer license; a
C
4. If the license. applicant intends to utilize a stage .name other :than that
shown on the application, the stage name shall be written on the application;
c
5. . Whether the applicant has been convicted of a specified criminal- activity *a
as defined in this chapter and, if so, the specified criminal activity involved and the date, C!
place, and jurisdiction.-of each. The City shall verify this .through a criminal background
check which -shall be conducted at the applicant's expense prior to issuance and/or E
renewal of the license; E
6. Whether the applicant has ever had a license previously issued under this a
chapter or the predecessor :to :this chapter or other similar adult business ordinances
from another city or county denied, suspended or revoked, including the name and
location of the adult-oriented business. where the applicant was employed or proposed
to be employed for which the license was denied, suspended or revoked, as well as the
date of the denial,. suspension or revocation;- and whether the- applicant has been a
partner in a partnership or an officer, director or principal.stockholder of a corporation
that is licensed under this chapter or the predecessor to this chapter whose license has
Page 34 of 43
.•Packet aPg,:�10.3
previously been denied, suspended or revoked, including the name and location of the
adult-oriented business for which the license was denied, suspended or revoked as well
as the date of denial, suspension.or revocation;
12. A statement signed under :penalty of perjury by the applicant that .the
applicant has personal knowledge of the information contained in the application and
that the information contained therein is true and correct; that the applicant grants
permission to the- city to perform any necessary background checks on persons or
businesses Iisted on the application; and that the applicant has.read all provisions of the
Grand Terrace Municipal Code regulating adult businesses.
0
E, Notwithstanding the fact that an application filed hereunder may be a
public record under Government Code Section: 6250 et seq., -certain portions of such d
application contain information vital .to the effective administration and enforcement of
the licensing and/or permit scheme established in this section which.is personal, private, d
confidential, or the disclosure of which could: expose the applicant to a risk of-harm, y
undue embarrassment, unwarranted intrusion or privacy or inconvenience. Such m
information includes, .:but is not limited to, the applicant's residence. address and -
telephone number, the: applicant's date of birth and/or age, the applicant's driver's a
license and/or Social Security:Number, and/or personal financial data.-
CD
N
The City Council,. in adopting the application and licensing and/or permit system
set forth in this section, has determined in.accordance with California Government Code CO
Section 6255 that the public interest in disclosure of the information -set forth -in -this
section is outweighed by the public interest in achieving compliance with this chapter by o
ensuring that the applicant's privacy, confidentiality, or security interests are protected.
The community development director shall cause to be obliterated from any'copy of a N
completed license application made available to anyone; including-any member of the ;
public, the information set forth in this section. . J
Section 5.88.070 Investigation of a manager or performer license
c
A. The completeness .of an application for an adult business: manager or performer
license shall be determined by the community development director within five (5) city o
business days of the date of receipt of proof of payment and processing of the Live M
Scan Service required in Section 5.88.060(C). If the community development director
determines that the application is incomplete, including a lack of proof of payment and
processing of the required Live Scan Service, the community development director shall-
immediately notify in writing the applicant of such fact and the reasons therefore; a
including ariy.additional information necessary to render the application complete. Such
writing shall , be deposited in the U.S. mail., postage prepaid, immediately upon
determination that the application is incomplete. The applicant shall have ten (10)
calendar days from the date of the notice to submit additional information to render the
application complete. The applicant's failure to submit the additional .information within
this time period renders the application null and void. Within five (5) city business days
following the receipt. of a supplemental or amended- application, .the community
development director shall again determine whether the application is complete.
Page 35 of 43
.Packet~Pg:°,1"04.
Evaluation and notification shall occur as provided'in this subsection until such time as
the application is found to be complete. Once the application is found to be complete,
the applicant shall .be notified within. five (5) City business days of that fact. If an
applicant submits: two consecutive incomplete applications, the applicant shall be
notified in writing that a new application must be filed with the community development
director as,set forth.in this chapter.
B. Within ten (10) city business days from the date the application is determined to
be complete, the community:development.director shall approve:or deny the application -
in:accordance with this chapter, and so notify the applicant as follows:.
o
'I. The community development director shall write or stamp "Approved" or
"Denied" on the application and date and sign.such notation.
d
2., If the application is denied, the community development director shall
attach to the application:a statement of the reasons for the denial. H
3. If the .application is granted, the community development director shall 0°
attach to the application an adult manager or adult performer license. a
4. The documents specified in subsections B(1), (2) and (3.) of this sectionCM
o
shall be deposited..in the United States mail, first class postage prepaid; addressed to
the applicant at the address, specified in the application. All notices given under this
subsection shall be deemed given upon the date they are.deposited in the United'States
mail,
C. Notwithstanding any provisions in this: section regarding: the occurrence of any CR
action within a specified period of time, the applicant may request additional time
beyond that provided for in this section or may request a continuance- regarding any a
decision or consideration .by the city of the pending application. ` Extensions of time
sought by applicants shall riot be considered -delay on the part of the city or constitute ail
failure by the city to provide for prompt decisions on. applications. _
c
D. If the community development director is .unable to act on the application:within o
the required time period following a determination of-completeness, he or she shall M
notify the applicant in writing and :issue a provisional: license, which shall expire u
following approval or denial of the application and final' disposition of any appeal d
proceedings as provided in this chapter.. The provisions of this chapter shall fully apply
to a provisional license.
a
Section 5:88:080 Approval or denial of a manager or performer license
A. The' community development director shall approve the issuance of a regular
license to..an applicant, :unless it is determined by a preponderance,of the evidence that
any one of the following findings is true:
1. The license applicant is under eighteen (18) years of age;
Page 36 of 43
Packet,Pg:105
2: An applicant- has failed to provide information reasonably necessary for
issuance of the license or gave false, fraudulent or untruthful' information on the
application form;
3. The applicant has been convicted of a specified criminal activity, -as
defined in this chapter, either within the state or in another jurisdiction;
4. The applicant has; within the past five 'years, been convicted in- an
administrative enforcement:action or court action of violating an.-adult-oriented business
ordinance; H
c
5. The applicant has had an adult business manager or performer license,.or
comparable license, of any type revoked within:the past five (5):years or one suspended
within the past three (.3) years, immediately preceding.the date of application; the fact
that the applicant figs appealed such action shall have no effect on the disqualification d
of the application; or N
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6. The,license fee required by this chapter has not been paid.
Section 5.88:090 Transfer of a manager or entertainer's license Co
CD
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It is a violation of, this. chapter for a- licensee to transfer ownership or control of a
Co
manager or performer-license to another. R
Section 5.88.100 Terms of license- a
CR
A. A license issued under this chapter shall be issued for:a period of one (1) year H
and is required to be renewed annually.
c.
B. A.license issued. under this chapter shall: expire on the last day of the calendar
month during which the licenses were issued or renewed during the previous year.
C. The.license, if granted,-shall state on its face the name of the person to whom it c
is granted,.the expiration date,.the address of-the adult-oriented: business and whether 7E
the license is a manager or performer license. M
-D. Within 30 calendar days of any change in the information originally submitted c C
with the license application, all licensees shall provide the community development
director with a written statement supplementing or amending the information required by
this division. Failure to submit such changes shall be grounds for suspension of the a
license.
Section 5.88.110:Re-Application-
A permittee or applicant cannot re-apply for an adult business manager or performer
license within one.(1) year from the date:of prior denial.
Section 5,88A 20 Renewals:
Page 37 of 43
- YPacket.;Pgi106
A. A license' may only be renewed by the licensee's filing with. the'community
development department a written request for renewal on a form provided by the- city,
accompanied by a nonrefundable application licensing fee set forth in the schedule of
fees established. from time to time by the city council, -and a copy of.the license to be
renewed.
B. The request for renewal shall -be-made at least thirty (30) calendar days before
the expiration date of the regular license. When a renewal request is made less than
thirty (30) calendar days before:the expiration.date, the expiration shall not be stayed.
C. The community development director shall act 'upon applications: for license
renewal as provided for in applications-for licenses. /
D. A licensee subject.to denial of a renewal application shall have the right to appeal -
th.e suspension or revocation under the procedures provided in this chapter.
N
Section 5.88.130 Suspension or Revocation.
7
A. On determining that grounds _for license suspension or revocation exist, the m
community development director shall`furnish written notice of the proposed suspension a
or revocation.to the license-:holder. Such notice shall set forth-the.1ime and place of a
hearing and the ground or grounds.upon which the hearing is based,. the pertinent code o
sections, and a brief-statement of the factual matters :in support thereof. The notice
shall be mailed, postage prepaid, addressed to'the last known address of the license co
holder, or shall be delivered to the license holder personally, at least ten (10) days-prior
to the hearing date. Hearings pursuant to this section. shall be conducted by the
community development director or his/her designee, which may include a third party
CR
hearing officer. Hearings pursuant to this section shall be conducted in accordance with In
procedures established by the community development director, at a .minimum, shall
include the following- C
- s
5. All parties involved -shall have the right to offer testimonial, documentary, and d�
tangible evidence bearing upon the issues and may.be represented.by counsel.
- c
6. The community development director or his/her designee shall not be bound by a
the formal rules of evidence. 0C;
7. Any hearing under this section may.be continued for a reasonable time for the E
convenience of a party or a witness at the :request of the license holder. E
Extensions of time or continuances sought by a.license holder shall not be
considered a delay on the part of, the City or constitute failure by the City to a
provide for prompt decisions on license suspensions or revocations.
8. The decision:of-the community,development director or his/her designee may be
appealed in accordance with this chapter.
Page 38 of 43
rt Packet.P;g_10.7:.
Section 5.88.140 Causes for Suspension, Revocation or Conditions
A: A license may be suspended, revoked, or conditions imposed on a license based
on.the following causes arising from:the:acts or omissions.of the license holder:
1. Licensee performed adult live entertainment in a location not approved for
such activity;
2. The -license is- being used to conduct an activity different from that for
which is was approved; ,^
N
3. Licensee violated any. requirement-of ,the Zoning Code related to the o
regulation of adult businesses;
aM
4. Licensee refused city .or other governmental agency access to the
premises and records;. y
a)
5. Licensee allowed a person under the age of eighteen. (18) years in or on
the:premises; m
6. Licensee demonstrated an inability to manage the-business in a peaceful a
and law-abiding manner thus necessitating action.by law enforcement officers; :.
00
7. Licensee violated any of the "standards of conduct and operation"
contained in chapter 18.70 of the municipal code;
ao
8. The licensee's-license has been suspended.more than once;
9.. The licensee managed or performed during a period of time when the
license was suspended; CR
10. Licensee transferred, or attempted to transfer, a license issued under this d
chapter to another person or entity; t
11. The license holder has failed to'obtain-or maintain all required city, county d�
and/or state licenses;
M
12.. The license holder has made: any false, misleading, or fraudulent
statement-of material fact in the application for an adult business license; O
6
13. The licensee, or in the case of a:manager, anAndividual employed by; or d
performing: in, the adult business '(whether classified as an .employee or independent
contractor) has been convicted:'of sex-related offenses that occurred -in or on the
licensed premises and was employed by, or performing-in, the adult business at the a
time the offenses were committed;
14. That the adult business that the license. holder is employed in and for
which the license was granted has ceased to exist or has been suspended for six- (6)
months or more; or
15. The licensee has knowingly allowed or permitted, or has failed to make a
reasonable effort to prevent.the occurrence of any of the following: on the premises of
Page 39 of 43
the adult business; or a licensee has been convicted of violating any of the following
state laws on the premises of the adult business: -
a. Any act of unlawful sexual intercourse, .sodomy, oral copulation, or
masturbation;
b. Use of the establishment as a place where unlawful solicitations for sexual
intercourse, sodomy,,oral copulation, or masturbation openly occur;
C. Any conduct constituting a criminal offense which requires registration
under Section 290 of the California Penal Code; o"
d.. The occurrence of acts of lewdness; assignation, or prostitution, including
any conduct constituting violations of Sections 315, 316, 318 or subdivision (b) of W
Section 647b of the.California Pena[Code;
e. Any act constituting a violation of provisions in the California Penal Code Z
relating to obscene..rhatter or distribution of harmful matter to minors, including, but not m
limited to Sections 311 through 313.4; a
f. Any act constituting a felony' involving-the said, use, possession, or
IM
possession for sale of apy controlled substance specified in Sections 11054, 11055,
11056-, 11057, or 11058 of th:e�.California Health &.Safety Code; or " -CO
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g. An act or,omission in violation of any of the.requirements of this chapter if
such act or .omission is with the knowledge, authorization, .or approval of the license Q
holder or is as a result. of the license holder's (in the case of a manager) .negligent
supervision of the employees or independent contractors of the adult business. This
includes the allowance of activities that:are or become a public nuisance which includes a
the disruptive conduct of business patrons whether on or immediately off the premises =
where: such patrons disturb the peace, obstruct traffic, damage :property, engage-In d�
criminal conduct; violate the law and otherwise impair the free enjoyment of life and
property. 1°
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Section 5.88.150 Decision following a Suspension or Revocation Hearing O
A. After holding the hearing in accordance with the provisions of this chapter, if the
community development director or his or:her designee finds and determines that there
are- grounds for suspension, revocation or the addition of conditions, the community
development director shall impose one of the following: a
Jr. Suspension of the license for a specified period not to exceed six (6) months; or
2. Revocation-of the license; or
3. The addition of reasonable conditions necessary to permit the adult business to
continue to operate .'in a manner that .would eliminate the grounds for suspension or
revocation that have been.found to exist.
Page 40 of 43
B. The community development director shall render a written decision that shall be
hand delivered or overnight mailed to the license holder within five (5) business days of
the.public hearing.
C. In the,event a license is revoked pursuant to this section, another adult business
license to operate an adult.:business shall not be granted to the. licensee or an entity
related to the licensee within twelve (12) months after the date of such revocation.
D. A licensee subject to suspension or revocation shall have the right to appeal the
suspension or revocation under the procedures provided in this chapter.
E. A licensee that'has had .a license revoked shall be subject to the same license 20
criteria required of any applicant applying for a new license.
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Section 5.88.1.60 Appeals H
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A. After approval, denial, suspension or revocation of a license, :any affected person N
may appeal the decision by filing a written petition with the city clerk requesting a m'
hearing on the denial, suspension, or revocation of the license 'within. fifteen (15)
calendar days of the date of the community development director's decision: The city a
council shall-:serve as the appeals board. The appeal shall be scheduled within twenty
(20).calendar days of the date the petition is received in the office of the city clerk. The N
city clerk shall give written notice to the applicant of the time and place for-the hearing
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on the applicant's appeal at least ten (10) calendar days prior,to the scheduled date .of
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hearing.
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B. During the appeal of a license denial, suspension, or revocation, the -applicant
shall be permitted to operate with a provisional: license until the final disposition:.of the H
appeal proceedings before the City Council. The provisions of this chapter shall fully
apply to a.provisional license. CL
C. Consideration of an appeal of th.e,decision shall be at a public hearing and which G�
hearing shall occur within thirty (30) days of the filing or initiation of the appeal.
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D. The city council's action on the appeal of the decision shall:be by a majority:vote
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of the members present and upon the conclusion of the de novo public hearing, the city M
council shall grant or deny the appeal. The city Council's decision shall be final and
conclusive and shall be rendered to the licensee in writing by registered or certified. mail
within ten (10) city business days of the hearing.
E. In reaching its decision,. the city council shall not be bound by the formal rules of a
evidence.
F. Notwithstanding any provisions in this section regarding the occurrence of any
action within a specified period of time, the 'applicant may request additional time
beyond that provided for in this section or may request a continuance regarding any
decision or consideration by the city of the pending appeal. Extensions .oftime sought
Page 41 of 43
;,Packet�Pg=110 .'
by-applicants shall not be considered delay on the part of the city or constitute failure by
the city to:pro-vide for prompt.decisions on.applications.
G. Failure of .the city clerk to render a decision to .grant or deny an appeal of a
license denial within the time-frames established by this section shall be deemed .to
constitute.a denial of the license.
R The time for a court challenge to a decision of the city council is governed by
California.Code of Civil Procedure § 1094.8. _
l:. Notice of the city council's decision and its .findings shall include citation to 2
California Code of Civil Procedure § 1094:8.
J.. Any applicant or license holder whose license has been denied pursuant to this
Section shall be -afforded prompt judicial review of-that decision as: provided by d
California Code of Civil Procedure § 1094.8. c_
Section 5.88.170 Violations m
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Any adult-oriented business .established; operated, or maintained contrary to the a
provisions of this chapter is unlawful and a public nuisance, and the City Attorney may N
commence an action or actions, proceeding or proceedings for the abatement, removal,
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and enjoinment thereof in the manner provided by law, and shall take such other steps Cq
and shall apply to such court or courts as may have jurisdiction to grant:such relief as
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will abate or remove such, adult-oriented business-and restrain and enjoin -any person V
r from establishing, operating, or maintaining an adult-oriented business contrary to the CR
provisions of this chapter or such other laws." d
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SECTION 6:- The City Council.declares that it would have adopted this ordinance and M
each section-, subsection, sentence, clause, phrase, or portion of it irrespective of the di
fact that any one or more sections, subsections, sentences, clauses, phrases or c
portions of it be declared invalid or unconstitutional. If for any reason any portion of.this
ordinance is declared invalid., or unconstitutional, then all other:provisions shall remain o
valid and enforceable. M
SECTION 7. This ordinance shall take effect thirty days from the date of adoption. E
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SECTION 8. First read at a regular meeting of the City Council held on the 23`d of July,
2013, and finally adopted and-ordered posted at a regular meeting of said City Council a
on the 13th-of August, 2011 -
Page 42 of 43
ATTEST:
City Clerk Mayor
I, Tracey R. Martinez,. City Clerk of the City of Grand Terrace, do hereby certify
that the foregoing Ordinance was introduced :and adopted at a. regular meeting-of the
City Council of the City of Grand Terrace held on the of 2013, by the
following vote: 2
AYES: 1
NOES:
ABSENT: m
ABSTAIN:-
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City Clerk cq
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Approved.as to form: CR
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City Attorney
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Page 43 of 43
=,Packet Pg::7.12,
CITY OF GRAND TERRACE
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G TERM •E
NOTICE OF EXEMPTION
TO: Clerk of the Board of Supervisors FROM: Community Development
County of San Bernardino City of Grand Terrace
385 N. Arrowhead Avenue, 2"d Floor 22795 Barton Road
San-Bernardino, CA 92415-0130 Grand Terrace, CA 923-13
Proiect Title: Zoning Amendment 13-01: Proposed Amendment to the Grand Terrace
Municipal Code by repealing and replacing in-its entirety Chapter 18.70 Adult Business o
Regulations, and adding Chapter 5.84 Adult Business Regulatory License and Chapter
5.88 Adult Business Manager and Performer License.
Project Location - Specific: City-wide d
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Description of Project: Amendment to Title 18 Zoning Code and Title 5 Business m
Taxes, License and Regulations relating to Adult Businesses.
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Name.of Public Agency Approving Proiect: City Council of the City of Grand Terrace a
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Name of Person or Agency Carrying out Project: City of Grand Terrace Community
Development Department
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Exempt Status.: 1.5061(c)(2) and 16061(b)(3) — An activity is not subject to the d
California Environmental Quality Act (CEQA) if the activity will not result in a direct or w
reasonably foreseeable indirect physical change in the environment; and where it can c
be seen with certainty that there is no possibility that the activity in question may have a
significant effect on the environment. c
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Lead Agency or Contact Person: Area Code/Telephone E
(909) 430-2225
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Sandra Molina Date
Deputy Director
Community Development
Pack_et Pg. 11.3
AGENDA REPORT . . .
MEETING DATE: July 23, 2013 Council Item
TITLE: Adoption .of Resolutions Authorizing Special Election 'in
November 2013 for the Purpose of Considering a Utility.
Users' Tax and Related Election Requirements
PRESENTED BY: Steve Elam,finance Department
RECOMMENDATION: Adopt the attached Resolutions authorizing a Special
Election to be held in November 2013:for the purpose.of'
considering a Utility Users' Tax, along with related election
requirements,
BACKGROUND:
On- April 22, 2013, staff presented a Five-Year -Financial Analysis and Budget
Stabilization Plan (Plan) to the City Council,-showing significant projected budgetary
deficits in the General Fund and total -depletion of General Fund reserves during the
upcoming fiscal year. These projected deficits are- primarily related to the loss of
redevelopment funds as a result of the statewide_dissolution of redevelopment agencies
that became-effective February 1, 2012. The Plan recommended that the City Council
consider a local tax measure to raise:additional revenues-needed to continue providing
essential services to the community.
After reviewing the Plan, the City Council appointed an Ad-Hoc Budget Advisory:
Committee (Committee) for the purpose of reviewing the Plan and making
recommendations to the .City Council regarding budget stabilization measures that
would be in the best long-term interest .of the community. After holding, six meetings
and conducting an-extensive review of f the City's financial challenges and potential
solutions, the Committee submitted a report .to the City Council -on June 11, 2013,
recommending that the City Council declare a: fiscal emergency and place .a Utility
Users' Tax initiative on the November 2013 ballot for the purpose of generating $1.5
million in new annual revenues for the City.
On June 25, 20.13, the City Council adopted a Resolution Declaring,a Fiscal Emergency
by unanimous vote.. At that same meeting, the City Council also approved the Fiscal
Year TY) 2013-14 Budget. The FY 2013-14 Budget was based. on the premise that a
special election would be held in November 20.1.3 to consider a local revenue measure;
however, if such a revenue measure was defeated-, significant service reductions would
need to be implemented so that expenditures would not.exceed projected revenues and
deplete General Fund reserves-.. Thus,the City Council adopted.a balanced budget with
automatic triggers for reducing expenditures if a November 2013 ballot measure is not
successful. The ,following table. shows the General Fund Balancing :Plan that was
approved by the City Council in conjunction with adoption of-the FY 2013-14 Budget.
Packet'Pg,'114
General Fund Approved Budget Balancing Plan
T.
%'Effective: Fund
Butlgetary,:Category I ction dtdrn - Budgetary
-- _
Balance
--_-'. - :Impact•___: _..:_�._:___..___
Beginning Fund Balance 7/1/13 -- $300,152
Projected Budgetary Deficit 7/1/13 $674,713 374,561
Approved Expenditure Increases 7/1/13 85,800 460,361
'Reduce law enforcement contract by one 1 deputy 7/1/13 257,500 202,861 -
Additional overtime required due to above staffing reduction 7/1/13_ 10,000. 212,861
_Addit6-n,-d Bud-_efa--EZed;ucfiions_Sf ouldeTax;Measure_NofPa_ss',
Reduce law enforcement 6ontract'by one additional deputy 12/1/13 150,200 62,661
Eliminate Senior Center funding i 1/1/14 13;500 49,161
Reduce EOC/CERT Committee funding by 50% 1/1/14 2,850 46,311
Close'Rollins and Pico Parks 1/1/14 60,000 13,689
Required weed abatement on.closed parks $13,000 annually) 111/14 6,500, 7,189
Reduce contract services for City Attorne jand Finance 1/1/14 26,000 33,189
Reduce City Administration personnel-related expense through
some combination of outsourcing,wage/benefit reductions,work 1/1/14 266,000 299,189
schedule reductions, and/or workforce reductions (lay-offs),
subject to the meet-and-confer=process.
'Reduce Cultural'&Hist6ri6al-Cdrrimittee funding b ,50% 1/1/14 300 299,489-
ReduceCity Council.and Oversight Board meetings to,monthl 1/1/14 250 299,739
Eliminate Planning Commission; City Council to assume'duties 1/1/14 1,100 300,839
The City Council also hired a company specializing in election advisory services and -
public opinion polling to conduct a Revenue Measure Feasibility Study among a
sampling of likely voters in the City. The results of this study were presented to the City
Council at a workshop on July 11, 2013, along with a recommendation that a special
election be held November 2013 to consider a Utility Users' Tax (UUT) at the rate of
5%. During this workshop, staff also presented its revenue estimates for a UUT
showing that a 5% UUT rate applied to a broad base of utilities _(electricity, natural gas,
water, video/cable TV, telecommunications, sewer and refuse collection) would
generate an estimated $1,134,500 in net annual revenues after allowing for statutory
and recommended discretionary exemptions. In order to generate $1.5 million in net
annual revenues, as recommended by the Budget Advisory Committee, a UUT rate of
7% would be required. The following table presents summary information from the UUT
rate analysis.
D'escri ton _°EstirnatedAnnual`ReYenue of Folloviiin,UU_T:Rates
5%
Estimated Gross Revenue(after allowing for statutory ~�~
exemptions) $968,000 $1,210,000 $1,452,000 $1,694,000
Recommended Policy Exemptions/Caps(5%of Estimated Gross'Revenue) (48,400) (60,500) (72,600) (84,700)
Annual.IjUT Audit Fee 15-1000 15,000 15,000 15,000
Estimated'NetAnnual.Revenue $904,600 $1,134,500 $1,364;400 $1,594,300
Average Monthly UUT Per Household 4,405 households $16A8 $20.60 124.72 $28:84
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DISCUSSION:
Although falling short of;the Budget Advisory Committee's recommended funding target
of $1.5 million, the additional projected $1.1 million in revenues from a 5% UUT would
greatly stabilize the City's General Fund and would achieve thelollowing results:
• The budget cuts shown in the above table that are scheduled to takeeffect
beginning December 1, 2013, will not need to .be implemented; thus preserving
law enforcement staffing, keeping parks open, continuing Senior Center funding
and maintaining City staffing/services at their current level.
• Beginning in FY 2014=15, with a full year of UUT revenues, additional funding will
be available for items such as:
- Increasing General Fund reserves to adequate levels to maintain fiscal
stability (2 months of annual revenues recommended).
- Once adequate reserve levels are achieved, one-time revenues (such as-
proceeds from the sale of .Successor Agency land) could be used for
street rehabilitation projects.
- Establishing an Asset-Replacement Fund so that,essential City equipment
can be replaced,when needed.
- Providing annual funding for retiree medical benefits to avoid a growing
long-term liability.
- Providing potential funding for additional Council/Community priorities.
The attached Resolutions have been prepared to allow the City to proceed with the
recommended special election in November 2013.
The first Resolution is approving the submittal of the question to the voters whether the
City shall enact a Utility Users' Tax, ordering a Special Municipal Election, and the
complete text of the ballot measure, which includes a description of the Utility Users'
Tax ("Tax"), the rate of the Tax, the method of its collection, and exemptions from the
Tax, and which shall become effective upon approval of a majority of the votes cast by
the voters voting upon a ballot measure.
The second Resolution for consideration is calling and"giving notice of holding a Special
Municipal Election on Tuesday, November 5, 2013, for submission to the voters the
question relating to a Utility Users' Tax and requesting that the Board of Supervisors of
the County of San Bernardino to consolidate the Special Municipal Election with the
Consolidated Election.
Once the Council calls for a Special Municipal Election for the purpose of considering a
Measure, the third" Resolution will need to be ,adopted. This Resolution addresses
setting priorities for filing written arguments regarding a City Measure and directing the
;t?acket.Pg 1;1,6
City Clerk, as the Elections Official, to prepare an impartial analysis for the same. The
City Council will need to .designate two authors to prepare an argument in favor of the
Measure. Pursuant to Article 4, Chapter 3, Division 9 of the Elections Code of the State
of California, the argument shall not.exceed 300 words. The argument will need to be
submitted to the City Clerk, as the Elections Official, no later than August 6, 2013 at
5:00 p.m. The Resolution also outlines the criteria that will be used in the event that
more than one argument for or against and City Measure is submitted. Also included in
the Resolution is the Council directing the City Clerk, as the Election's Official, to
prepare an impartial analysis. Pursuant to Section 9280 of Article4, Chapter 3, Division
9 of the Elections Code of the State of California; whenever'any,City, Measure qualifies
for a place on the ballot, the governing body may direct the City Election's Official to
transmit a copy of the measure to the City Attorney to prepare an impartial analysis. If
the organization or salaries of the office of the City attorney- are affected by the
Measure, the governing body may direct the Elections Official to prepare the impartial
analysis. The City Attorney's Office has reviewed the Code and indicated that since it
has been stated that if the Measure should not be successful the contract with Jones
and Mayer would be reduced, therefore affecting the organization, that they will. not be
able to prepare an impartial analysis.
The final Resolution for consideration is providing for the fling of-rebuttals regarding a
City Measure. Section 9285 of the Elections Code of the State of California authorizes
the City Council, by majority vote, to adopt provisions,to provide for the filing of,,rebuttal
arguments for City Measures. This Resolution outlines the procedures for submission
of rebuttals. The submission of rebuttals to any argument shall be done no later than
August 16, 2013 at 5:00 p.m. This date is a Friday, however, the City Clerk's
Department will be open from 8:00 a.m. to 5600 p.m. to receive any rebuttals that may
be submitted.
FISCAL IMPACT:
Approval of a Utility Users' Tax at a rate of 5%, as enumerated in the attached draft
Ordinance (Exhibit A), will generate an estimated $1,134,500 in new annual revenues
for City's General Fund.
ATTACHMENTS:
• Resolution—Submitting Question to the Voters_Measure_2013_final
• Exhibit A_Draft UUT Ordinance
• Resolution Calling Special Election and Requesting
Consolidation—Measure-2013—final
• Cross-Reference to Exhibit A_Draft UUT Ordinance
• Resolution ,Filing,Written Arguments—Impartial Ana lysis_Measure_2013
• Resolution—Filing Written Rebuttals—Measure-2013
APPROVALS:
Steve Elam Completed 07/18/2013 10:49 AM
Finance Completed 07/18/2013 12:07 PM
',Packet'+fPg, 11T�
City Attorney Completed 07/18/2013 2:12 PM
City Manager Completed 07/18/2013 3:07 PM
City Council Pending
�_Packet?t?:g11`:8`
RESOLUTION NO, 2013- '
A RESOLUTION OF' THE CITY COUNCIL OF THE CITY OF GRAND ,o
TERRACE,: CALIFORNIA, SUBMITTING TO THE VOTERS A QUESTION c
WHETHER THE CITY SHALL ENACT A UTILITY USERS' TAX
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WHEREAS, the City of,Grand Terrace-has sustained significant financial lossesCL
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as a result.of the state-wide dissolution of redevelopment agencies.effective February 1,
201.2; and
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WHEREAS, the loss of redevelopment funds has .resulted in a significant w
projected General Fund budgetary deficit for Fiscal Year 2013=14 and the ensuing a
years; and
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WHEREAS, in response to the projected General Fund budgetary deficit, c
significant expenditure reductions were approved for Fiscal Year 2013-14 including the
reduction of two sheriff's deputies, the. closure of Rollins and Pico Parks; .the reduction ..
of funding for, legal and financial contract services, the elimination of funding for the :M
Senior Center, the reduction of funding for emergency services, and a significant
reduction in City Administration personnel-related expense to be implemented through
some combination of outsourcing, wage/benefit reductions,, work schedule reductions, i
and/or workforce reductions:(lay-offs), subject-to.the meet-and-.confer process; and.
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WHEREAS:, in-order to prevent the expenditure reductions enumerated above,
additional revenues are needed through the enactment of a local.tax measure;:and.
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WHEREAS., :on June 25, 201.3, the City Council adopted Resolution 2013-28, 2
declaring a Fiscal Emergency, by unanimous vote of-the City Council Members.; and
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WHEREAS, pursuant to subdivision (b) of Section 2 of Article XIIIC of the
California Constitution and Section 53720 et. Seq. of the California Government Code °.
(the "Government Code"), the City Council is authorized to impose a general tax upon c
submission of such general tax to the voters of the City and approval by a majority of
the voters voting on the issue; and
WHEREAS, the City Council desires to submit to the voters of-the City; pursuant
to.this Resolution, a ballot measure.to levy a general .Utility Users' Tax on utilities in the E
City; as described in the attached Ordinance, which is incorporated in this Resolution,as
Exhibit A,.the.proceeds of which Utility User Tax will be deposited in the City's General
Fund for general governmental purposes; and °
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WHEREAS, the City Council desires to order a special municipal election of the
City to be held on November 5., 2013, and to submit a ballot measure to levy,the Utility
Users' Tax to the voters of the City at such special municipal election,"and
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WHEREAS, the City Council hereby authorizes the City Clerk, as the Elections
Official, to. coordinate such a. special municipal election with the County of San
Bernardino-Registrar of Voters. ,o
NOW; THEREFORE; THE CITY COUNCIL OF THE CITY OF GRAND
TERRACE' CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: W
SECTION 1. Pursuant to Elections Code 9222, -the City Council hereby d
authorizes the following:question to be submitted to the voters at the special municipal :W
election to be held on November 5, 2013: c
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Measure . Utility Users' Tax Response : Vote
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To ensure .Grand Terrace has the funds necessary to _
remain an independent city and able to provide
essential services to:residents including. rapid response Yes c
to 9-1-1-police emergencies, maintenance/repair: of local
streets; adequate police services; and maintaining-parks
and :public facilities, shall the City of Grand Terrace o
establish a utility users' tax of. 5% for=six years only with No
independent citizen oversight, all money staying: local,
and an exemption for low-income seniors? wi
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SECTION 2. The complete text of the ballot . measure, which includes a 2
description: of the Utility Users' Tax ("Tax"),,the rate of the Tax, the method of -its
collection, and exemptions from the Tax, and which shall become effective -upon
approval of a majority of the votes cast:by the voters voting upon the ballot-measure, is
set forth in Exhibit A, attached hereto and hereby incorporated herein. c
SECTION 3. The ballot measure shall not take effect, and the Utility. .Users' Tax w
shall not be levied, .unless and until the ballot measure receives the :approval of a w
majority of the votes cast by the voters of the.City voting upon such ballot measure at c
the November 5, 2013 special municipal election: :U.
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SECTION 4. If the ballot-measure is so approved, the attached Ordinance shall 0
be codified:as Chapter 3.10 of the City of Grand Terrace Municipal Code.
SECTION 5. The City Clerk, as the Elections Official, is hereby directed to file
certified"copies of this Resolution with the County of San Bernardino:Board of =i
Supervisors and the.County Clerk and to take all other actions necessary to.carry out
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this Resolution: c
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SECTION 6. The funds necessary to pay for the cost of the Special Municipal &
Election have been appropriated in the City of Grand Terrace Adopted Budget for Fiscal d
Year 2013-14. E
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SECTION 7. In all particulars not recited in:this Resolution, the Special Municipal
Election shall be held and conducted as provided by law for holding municipal elections, ,o
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BE IT FURTHER RESOLVED that this Resolution shall take effect immediately
upon the date of its adoption. w
PASSED, APPROVED AND ADOPTED by the City Council of Grand Terrace at a d
regular meeting held on-the 23rd day of July, 2013. CL-
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Mayor of the City of Grand Terrace a
and the City Council thereof c
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ATTEST:
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City Clerk of the City of Orain'd Terrace -
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I, TRACEY R. MARTINEZ, CITY CLERK of the City of Grand Terrace, California, Mi
do hereby-certify that the foregoing Resolution was adopted.at a.regular meeting of:the
City Council of the City of Grand Terrace held on the 23rd day of July, 2013, by the
following vote:
AYES:
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:ABSENT H
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ABSTAIN
Tracey R. Martinez, City Clerk C�
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APPROVED AS TO FORM: c
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City Attorney
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Exhibit A
MEASURE
AN ORDINANCE-OF THE PEOPLE OF THE CITY OF'
GRAND TERRACE, CALIFORNIA APPROVING A UTILITY X
USERS' TAX
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THE PEOPLE OF THE CITY OF GRAND TERRACE, CALIFORNIA DO
ORDAIN AS FOLLOWS:
Title 3, Chapter 3.10 of the Grand Terrace Municipal Code-is hereby adopted, and it shall `o
read as follows:
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Chapter 3.10
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Utility Users' Tax
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3.10.010 Short Title
3.10.020 Ddfmitions 'N
3.10.030 Constitutional, Statutory, and Other Exemptions
110.040 Telecommunication Users' Tax a
3.10.050 Electricity'Users' Tax
3.10.0.60 Gas Users' Tax o
3.10.070 Collection of Tax from Service Users Receiving Direct Purchase of Gas or
Electricity
3.10.080 Video Users' Tax
3.10.090 Water Users' Tax c
3.10.100 Sewer.Users' Tax
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3.10.110 Refuse Users' Tax
3.10.120 Maximum Tax c
3.10.130 Senior Low-Income Exemption
3'.10.140 Bundling Taxable Items with Nontaxable
Items-0
3.10.15.0 Substantial Nexus/Minimum Contacts F-
3.10.160 Duty to Collect—Procedures
3.10.170 Collection Penalties-Service Suppliers
3.10.180 Actions to Collect ei
3.10.190 Deficiency Determination and Assessment—Tax Application Errors a
3.10.200 Administrative Remedy—Nonpaying Service Users
3.10.210 Additional Powers and Duties of the Tax Administrator w
3.10.220 Records
3.10.230 Refunds d
3.10.240 Appeals
3.1.0.250 No Injunction/Writ of Mandate
3.10.260. -Notice of Change:to Ordinance a
3.10.270 Effect of State and Federal Reference/Authorization
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Exhibit A
3.10.280 No Increase in Tax Percentage or Change in Methodology without Voter
Approval
3.10.290 Independent Audit of Tax Collection,Exemption,Remittance, and Expenditure
3.10.300 Citizens Oversight Committee
3.10.310 Remedies Cumulative x
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3.10.320 Sunset of Tax �-
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3.10.010 Purpose.
The purpose of this ordinance is to impose a utility users' excise tax as a revenue measure ?'
necessary to pay the usual and current expenses of conducting the municipal government
of the City. This ordinance shall-be known and may be cited as the Utility Users' Tax `o
Ordinance. `~
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3.10.020 -Title of ordinance. d
The ordinance codified in this title shall be known as the Utility Users' Tax Ordinance. W
Section 3.10.030-Definitions. c.
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The following words and phrases whenever used in this Chapter 3.10 shall be .S
construed as defined in this Section. s
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(a) "Ancillary telecommunication services"means services that are
associated with or incidental to the provision,use or enjoyment of.telecommunications o_
services, including but not limited to the following services:
(1) "Conference bridging service"means an ancillary service that links two
(2)or more participants of an audio or video conference call and may include the c
provision of a telephone number. Conference bridging service does not include the
telecommunications services used to reach the conference bridge.
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(2) "Detailed telecommunications billing service" means an ancillary
service of separately stating information pertaining to individual calls on a customer's p
billing statement.
(3) "Directory assistance" means an ancillary service of providing telephone
number information, and/or address information. pi
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(4) "Vertical service"means an ancillary service that is offered in connection
With one or more telecommunications services, which offers advanced calling features w
that allow customers to identify callers and to manage multiple calls-and call connections,
including conference bridging services.
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(5) "Voice mail service"means an ancillary service that enables the customer cc
to store, send or receive recorded messages. Voice mail service does not include any q
vertical services that the customer may be required to have in order to utilize the voice
mail service.
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Exhibit.A
(b) "Ancillary video services" means.services that are associated with or
incidental-to the provision or delivery of video.services, including but not limited to
electronic program guide services,recording services, search functions, or other
interactive services or communications that are associated with or incidental to the
provision,.use or enjoyment of video services.
(c) `Billing address" shall mean the mailing address of the service user d
where the service supplier submits invoices-or bills for payment by the customer.
(d) "City" shall mean the City of Grand Terrace.
L
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(e) "Gas" shall mean natural or manufactured gas or any alternate c
hydrocarbon fuel which may be substituted therefor.
d
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(f) "Individual Service" shall mean utility service.at a single contiguous
location: A service user with more than one meter or billing invoice.per utility service at �
a single contiguous location may combine all billings for purposes of calculating the co
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maximum tax amount.
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(g) "Mobile telecommunications service"has the meaning and usage as set .00
forth in the Mobile Telecommunications Sourcing Act(4 U.S C. Section 124.) and the Q
regulations thereunder. 0
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(h) "Month" shall mean a calendar month. c
N
-' G1
(i) "Non-Utility Service Supplier"means:
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(1) a service:supplier, other than a supplier of electric distribution services to all
or a significant portion of the City, which generates electricity for sale to others;
and shall include but is not limited to any publicly-owned electric utility, investor-
owned utility, cogenerator, distributed generation provider, exempt wholesale =
'a
generator (15 U.S.C. Section 79z-5a), municipal utility district, federal power p
marketing agency, :electric rural cooperative, or other supplier or seller .of
electricity;
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L
(2) an electric service provider (ESP), electricity broker, marketer, aggregator,
pool operator, or other electricity supplier other than a, supplier of electric
distribution services to all or a .significant portion of the City, which sells or
supplies electricity or supplemental.services to electricity users within the City; or w
(3) a gas service supplier, aggregator, marketer or broker, other than a supplier of
gas distribution services to all or a significant portion of the City, which sells or
supplies gas or supplemental services to gas users within the City.
Q
3
J;Packet:iPg.,124 .
Exhibit A
0) "Paging service" means a"telecommunications service"that provides
transmission of coded radio.signals for the purpose of activating specific pagers; such
transmissions may include messages and/or sounds.
(k) "Person" shall mean,without limitation, any natural individual, firm, X
trust, common law trust, estate,partnership of any kind, association; syndicate, club,joint
stock company,joint venture, limited liability company, corporation(including foreign
and domestic),joint power agency,municipal district or municipal corporation(other
than the City), cooperative,receiver,trustee, guardian, or other representative appointed ?'
by order of any court.
0
(1) "Place of primary use" means the street address representative of where
the customer's use of the telecommunications service primarily occurs;which must be
the residential street address or the primary business street address of the customer.
w
io
(m)- "Post-paid telecommunication service"means the telecommunication
service obtained by making a payment on a communication-by-communication basis C
either through the use of a credit card or payment mechanism such as a bank.card,travel
card, credit card, or debit card, or by charge made to a service number which is not 'N
associated with the origination or termination of the telecommunication service. s
0
(n) "Prepaid telecommunication service"means the right to access
telecommunication services, which must be paid for in advance and which enables the c
origination of communications using an access number or authorization code, whether
manually or electronically dialed.
12
(o) "Private telecommunication service" means a telecommunication
0
service that entitles the customer to exclusive or priority use of a communications
channel or group of channels between or among termination points,regardless of the
manner in which such channel or channels are connected, and includes switching C
capacity, extension lines, stations, and any other associated services that are provided in
connection with the use of such channel or channels. A communications channel is a p
physical or virtual path of communications over which signals are transmitted between or
among customer channel termination points (i. e.,the location where the customer either
inputs or receives the communications).
0
i
(p) "Service address" means the residential street address or the business a
street address of the service user. For a telecommunication or video service user,
"service address" means either: _
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w
(1) The location of the service user's telecommunication equipment from
which the telecommunication originates or terminates,regardless of where the
telecommunication is billed.or paid; or,
a
4
_Packet.Pg. 125
Exhibit A
(2) If the location in subsection(1) of this definition is unknown(e.g.,mobile
telecommunications service or VoIP service), the service address means the location of
the service user's place of primary use.
(3) For prepaid telecommunication service, "service address".means the point of X
sale of the services where the point of sale is within the City, or if unknown, the known
address of the service user (e.g., billing address or location associated with the service
number),which locations shall be presumed to be the place of primary use. :3
(q) "Service supplier" shall mean any entity or person, including the City,
that provides, sells, or resells a utility service to a user of such service within the City. e
c
(r) "Service user" shall mean a person required to pay a tax imposed.under 0
the provisions of this Chapter. d
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(s) "State" shall-mean the State of California.
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(t) "Streamlined Sales and Use Tax Agreement" means the multi=state
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agreement commonly known and referred to as the Streamlined Sales and Use Tax 'N
Agreement, as it is amended from time to time. s
(u). "Tax Administrator" shall be the Finance Director, or his or her
designee. o
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(v). "Telecommunications service"means the transmission, conveyance, or H
routing of voice, data, audio, video, or any other information or signals.to a point, or
between or among points,whatever the technology used. The term"telecommunications c
services"includes such transmission, conveyance, or routing in which computer CO
processing applications are used to act on the form, code or protocol of the content for
purposes of transmission, conveyance or routing without regard to whether such services
are referred to as voice over internet protocol (VoIP) services or are classified,by the c
Federal Communications Commission as enhanced or value added, and includes video p
and/or data services that is functionally integrated with"telecommunication services."
"Telecommunications services" include,but are not limited to the following services,
regardless of the manner or basis on which such services are.calculated or billed:
ancillary telecommunication services; intrastate, interstate, and international G�
telecommunication services; mobile telecommunications service; prepaid a
telecommunication service;post-paid telecommunication service;private M
telecommunication service;paging service; 800 service (or any other toll-free numbers w
designated by the Federal Communications Commission); 900 service (or any other
similar numbers designated by the Federal Communications Commission for services
whereby subscribers who call in:to pre-recorded or live service).
�a
(w) "Video programming"means-those programming services commonly Q
provided to subscribers by a"video service supplier".including but not limited"to basic
services,premium services, audio services,video games,pay-per-view services,video on
5
``:Packet Pg.,126
-=- -
Exhibit A
demand, origination programming, or any other similar services,regardless of the content
of such video programming, or the technology used to deliver such services, and
regardless of the manner or basis on which such services are calculated or billed.
(x) "Video services"means "video programming"and any and all services X
related to the providing, recording, delivering,use or enjoyment of"video programming" ~
(including origination programming and programming using Internet Protocol, e.g., IP-
TV and IP-Video), regardless of the technology used to deliver, store or provide such
services; and regardless of the manner or basis on which such services are calculated or ?'
billed, and includes ancillary video services, data services, "telecommunication services,"
or interactive communication services that are functionally integrated with"video `o
services."
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(y) "Video service supplier"means any person, company, or service which d
provides or sells video programming, or provides or sells the capability to receive video LU
programming, including any communications that are ancillary,necessary or common to
the provision,use or enjoyment of the video programming,to or from a business or y
residential address in the City,where some fee is paid,whether directly or included in
dues or rental charges for that service,whether or not public rights-of-way are utilized in N
the delivery of the video programming or communications. A"video service supplier" .0
includes, but is not limited to,multichannel video programming distributors (as defined a
in 47 U.S.C.A. Section 522(13)); open video systems (OVS) suppliers; and suppliers of
cable.television; master antenna television; satellite master antenna television; o_
multichannel multipoint distribution services(MMDS); video services using internet
protocol(e.g., IP-TV and IP-Video,which provide, among other things,broadcasting and
video on demand), direct broadcast satellite to the extent federal law permits taxation of .12
its video services,now or in the future; and other suppliers of video services (including _c
two-way communications),whatever their technology.
d
(z) "VoIP (Voice Over Internet Protocol)"means the digital process of
making and receiving real-time voice transmissions over any Internet Protocol network. 5
V
E.
(aa). "Water Corporation,Electrical Corporation" have the same meanings
as defined in Sections 241 and 218 respectively, of the Public Utilities Code of the State
of California. "Electrical corporation" and"water corporation"includes any organization,
municipality or agency engaged in the selling or supplying of electrical power or water to ai
a service:user.
(bb) "800 Service" means a"telecommunications service"that allows a caller w
to dial a toll-free number without incurring a charge for the call. The service is typically
marketed under the name "800,""855,""866," "877,"and"888"toll-free calling, and
any subsequent numbers designated by the Federal Communications Commission.
e�
(cc) "900 Service"means an inbound toll "telecommunications service" q
purchased by a subscriber that allows the subscriber's customers to call in to the
subscriber's prerecorded announcement or live service. "900 service"does not include
6
.Packet Pg. 127
s
Exhibit A
the charge for: collection services provided by the seller of the"telecommunications
services"to the subscriber,.Or service or product sold by the subscriber to the subscriber's
customer. The service is typically marketed under the name"900"service, and any
subsequent numbers.designated by the Federal Communications Commission.
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3.10.030 Constitutional, statutory, and other exemptions. !7
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(a) Nothing in this Chapter shall be construed as imposing a tax upon: (1) any person or
service when the imposition•of such tax upon such person or service would be in
violation of a Federal or State statute,the Constitution of the United States or the
Constitution of the State; (2)the City; or(3) any religious or nonprofit organizations c
which are exempt from.taxation pursuant to state or federal law, and which have applied c
for and received tax-exempt status from either the State or the federal'government. 2
d
(b)Any service user that is exempt from the tax imposed by this Chapter pursuant.to 0
subsection(a) of this Section.shall file an application with the Tax Administrator for an
exemption;provided, however,this requirement shall not apply to a service user that is a co
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State or Federal.agency or subdivision with a commonly recognized name for such
service. Said application shall be made upon a form approved by the Tax Administrator .N
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and shall state those facts, declared under penalty of perjury, which qualify the applicant
for an exemption,.and shall include the names of all service suppliers serving:that service a
user. If deemed exempt by the Tax Administrator, such service user shall give the Tax c
Administrator timely written notice of any change.in service suppliers so that the Tax o_
Administrator can properly notify the new service supplier of the service user's tax
exempt status. A service user that fails to comply with this Chapter shall not be entitled to
a refund of a users' tax collected and remitted to the Tax Administrator_.from such service
user as a result of such noncompliance. c
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The decision of the Tax Administrator may be appealed pursuant to:Section 3.10.240 of
this Chapter. Filing an application with the Tax Administrator and appeal to the City
Manager, or designee,pursuant to Section 3.10.240 of this Chapter is a prerequisite to a 5
suit thereon. 0
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(c) The City Council may,by resolution, establish one or more classes of persons or one
or more classes of utility service otherwise subject to payment of a tax imposed by this
Chapter and provide that such classes of persons or service shall be exempt, in whole or of
in part from such tax for a specified period of time. a
3.10.040 Telecommunication Users' Tax. w
(a) There is hereby-imposed a tax upon every person in the City using a
telecommunication services. The tax imposed by this Section shall be at-the rate.of five
percent.(5%) of the charges-made for such services and shall be collected from the
service-user by the telecommunication services supplier or its billing agent. There is a a
rebuttable presumption that telecommunication services,.which are billed to a billing or
service address in the City, are used, in whole or in part,within the City's boundaries;
7
'Packet Pg. 1.28
Exhibit A
and such services are subject to taxation under this Section. There is also a rebuttable
presumption that prepaid telecommunication services sold within the City, or if the
known address of the service user is in the City,that such services are used, in whole or
in part,within the City and are therefore subject to taxation under this Section. If the
billing address of the service user is different from the service address,the service X
address of the service user shall be used for purposes of imposing the tax. As used in this
Section, the term"charges"shall-include the value of any other services, credits,property
of every kind or nature, or other consideration provided by the service user in exchange
for the telecommunication services.
(b) "Mobile telecommunications service"shall be sourced in accordance with the c
sourcing rules set forth in the Mobile Telecommunications Sourcing Act(4 U.S.C. e
Section IN). The Tax Administrator may issue and disseminate to telecommunication 2
service suppliers;which are subject to the tax collection requirements of this Chapter, d
sourcing rules for the taxation of other telecommunication services, including but not w
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limited.to post-paid telecommunication services, prepaid telecommunication services, '�
VOIP, and private communication services,provided that such rules are based upon C
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custom and common practice that further administrative efficiency and minimize multi c
jurisdictional taxation(e.g., Streamlined Sales and Use Tax Agreement). 'H
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(c) The Tax Administrator may issue and disseminate to telecommunication service a
suppliers,which are subject to the tax collection requirements of this Chapter, an
administrative ruling identifying those telecommunication services, or charges therefore, o
that are subject to or not subject to the tax of subsection(a) above.
(d) As used in this Section,the.term"telecommunication services" shall include,but is 12
not limited to, charges for: connection, reconnection,termination,movement, or change c
of telecommunication services; late payment fees; detailed billing; central office and r
v
custom calling features (including but not limited to call waiting, call forwarding, caller d
identification and three-way calling); voice mail and other messaging services; directory
assistance; access and line charges;universal service charges;regulatory or 5
�a
administrative fees, charges or surcharges; cost recovery charges or surcharges for 0
programs imposed by state or federal law; local number portability charges; and text and
instant messaging. "Telecommunication services" shall not include digital downloads that
are not"ancillary telecommunication services,"such as music,ringtones, games, and
similar digital products. ei
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(e) To prevent actual multi jurisdictional taxation of telecommunication services subject B
to tax under this Section,any service user,upon proof to the Tax Administrator that the W
service user has previously paid the same tax in another state or city on such 41
telecommunication services, shall be allowed a credit against the tax imposed to the d
extent of the.amount of such tax legally imposed in such other state or city;provided,
however,the amount of credit shall not exceed the tax owed to the City under this
Section. a
8
.Packet Pg. 129
Exhibit.A
(g) The tax on telecommunication services.imposed by this Section shall be collected
from the service user by the service supplier. The amount of tax collected in one month
shall be remitted to the Tax Administrator, and must be received by the Tax
Administrator on or before the twentieth(20th) day of the following month.
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3.10.050 Electricity Users Tax.
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(a)There is hereby imposed a tax upon every person using electricity in the City. The tax
imposed by this Section shall be at the rate of five percent(50/Q) of the charges made for
such electricity, and for any supplemental services or other associated activities directly
related to and/or necessary for the provision of electricity to-the service user,which are `o
provided by a service supplier or non-utility service supplier to a service user. The tax c
shall be collected from the service user by the service supplier or non-utility service 2
supplier, or its billing agent.
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(b)As,used in this Section,the.term "charges" shall apply to all services, components and '
items that are: i) necessary for or common to the receipt, use or enjoyment of electric cCL
service; or, ii) currently are or historically have been included in a single or bundled rate c
for electric service by a local distribution company to a class of retail customers. The 'N
term"charges" shall include,but is not limited to,the following charges: .0L0
(1) energy charges; y
(2) distribution or transmission charges; o
(3)metering charges; 3
(4) stand-by, reserves, firming, ramping, voltage support, regulation, emergency, m
or other similar charges-for supplemental services to self-generation service users;
(5) customer charges, late charges, service establishment or reestablishment c
charges, demand charges, fuel:or other cost adjustments,power exchange charges, co
independent system operator (ISO) charges, stranded investment or competitive 0
transition charges :(CTC), public purpose program charges, nuclear
decommissioning charges, trust- transfer amounts (bond financing charges),
franchise fees, franchise surcharges, annual and monthly charges, and other
charges, fees or surcharges which are necessary for or common.to the receipt, use
or enjoyment of electric service; and,
(6) charges, fees, or surcharges for electricity services or programs which are
mandated by the California Public Utilities Commission or .the Federal Energy c
Regulatory Commission, or by any state or federal law, whether or not such
charges, fees, or surcharges appear on a bundled or line item basis on the
customer billing. W
(c) As used in this Section, the term "charges" shall include the value of any other d
services, credits, property of every kind or nature, or other consideration provided by the
service user in exchange for-the electricity or services related to the provision of such
electricity. a
9
i'Packet,Pg:130
Exhibit A.
(d) The Tax Administrator, from time to time, may survey the electric service suppliers
to identify the various unbundled billing components of electric retail service that they
commonly provide to residential and.commercial/industrial customers in the of the City,
and the charges therefor, including; those items that are mandated by state or federal
regulatory agencies as a condition of providing such electric service. The Tax X
Administrator, thereafter, may issue and disseminate to such electric service suppliers an
administrative ruling identifying.those components and items which are: i) necessary for
or common to the receipt, use or enjoyment of electric service; or, ii) currently are or
historically have been included in a single or bundled rate for electric service by a focal
distribution company to a class of retail customers. Charges for such.components and
items shall be subject to the tax of subsection(a) above. `o
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(e) As used in this Section, the term "using electricity" shall not include the electricity 2
used in water pumping by a water corporation or mutual water company, or the mere
receiving of such electricity by an electrical corporation or governmental agency at a w
point within the City for resale.
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(f) The tax on electricity provided by self-production or by a non-utility service supplier .c
not under the jurisdiction of this Chapter 16 shall be collected and remitted in the manner 'N
set forth in Section 3.10.070 of.this Chapter. All other taxes on charges for electricity
imposed by this Section shall be collected from the service user by the electric service Q
supplier or its billing agent. The amount of tax collected in one (1) month shall be y
remitted to the Tax Administrator, and must.be received by the Tax Administrator on-or o
before the twentieth (20`h) day -of the following month; or, at the option of the person
required to collect and/or remit the tax, such person shall remit an estimated amount of _
tax measured by the tax billed in the previous month or upon the payment pattern of the iz
service user, which must be received by the Tax Administrator on or before the twentieth c
(20'h) day of the following month, .provided that such person shall submit an adjusted
payment or request for credit, as appropriate, within sixty (60) days following each
calendar quarter. The credit, if approved by the Tax Administrator, may be applied
against any subsequent remittance that becomes due. S
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3.10.060 Gas Users Tax. i—
(a) There is hereby imposed a tax upon every person using.gas in the City,which is
transported and delivered through a pipeline or by mobile transport. The tax imposed by o�
this Section shall be at the rate of five percent,(5%)of the charges made for such gas, w
including all services related to the storage,transportation and delivery of such gas. The
tax shall be collected from the service user by the service supplier or non-utility service w
supplier, or its billing agent, and shall apply to all uses of gas,including but not limited
to,heating, electricity generation, and the use of gas as a component of a manufactured
product.
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(b) As used in this Section, the term "charges" shall apply to all services, components
and items for gas service that are: i) necessary for or common to the -receipt, use or
enjoyment of gas service; or, ii) currently are or historically have been included in a
10
-:Packet..Pg:'1;31
Exhibit A
single or bundled rate for gas service by a local distribution company to a class of retail
customers. The term"charges shall include,but is not limited to,the following charges:
(1) the commodity charges for purchased gas, or the cost of gas owned by the
service user (including the actual costs attributed to drilling, production, lifting, X
storage, gathering, trunkline, pipeline, and other.operating costs..associated with !
the production and delivery of such gas), which is delivered through a gas
pipeline distribution system;
(2) gas transportation charges (including interstate charges to the extent not
included in commodity charges);
(3) storage charges; provided, however, that the service supplier-shall not be
required to apply the tax to any charges for gas storage services when the service e
supplier cannot, as a practical matter, determine the jurisdiction where such stored
gas is ultimately used; but it shall be the obligation of the service user to self- v
d
collect the amount of tax not applied to any charge for gas storage by the service w
supplier and to remit the tax to the appropriate jurisdiction;
(4) capacity or demand charges, late charges; service establishment or a
U)
reestablishment charges, .transition charges, customer-charges, minimum charges, c
annual and monthly charges, and any other charges which.are necessary for or 'N
common to the receipt,use or enjoyment of gas service; and, s
(5) charges, fees, or surcharges for gas services or programs which are mandated a
by the California Public Utilities Commission or the Federal Energy Regulatory U)
Commission, or by any state or federal law, whether or not such charges, fees; or o
surcharges appear on a bundled or line item basis on the customer billing.
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(c) As used in this Section, the term "charges" shall include the value of any other
services, credits, property of every kind or nature, or other.consideration provided by-the c
service user in exchange for the gas or services related to the delivery of such gas. CO
as
(d) The Tax Administrator, from time to time, may survey the gas service suppliers to
identify the various unbundled billing components of gas retail service that they e
commonly provide to residential and commercial/industrial customers in the City, and the
charges therefor, including those items that are mandated by state or federal regulatory j
agencies as a condition of providing such gas service. The Tax Administrator, thereafter, M
may issue and disseminate to, such gas service suppliers an administrative ruling
identifying those components and items which are: i) necessary for or common to the e
receipt, use or enjoyment of gas service; or, ii) currently are or historically have been a�
w
included in a single or bundled rate for gas service by a local distribution company to a
class of retail customers. Charges for such components and items shall be subject to the w
tax of subsection(a) above. L;
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.(e) There shall. be excluded from the calculation of the tax imposed in this :Section,
charges made for gas which is to be resold and delivered through a pipeline distribution
system. a
11
��.Packet�P.g,132
Exhibit A
(f) The tax on gas provided by self-production or by a non-utility service supplier not
under the jurisdiction of this Chapter 16 shall be collected and remitted in the manner set
forth in Section 3.10.070. All other taxes on charges for gas imposed by this Section
shall be collected from the service user by the gas service supplier or its billing agent.
The amount of tax collected in one (1) month shall be remitted to the Tax Administrator, R
and must be received by the Tax Administrator, on or before the twentieth (20th) day of F'
the following month; or, at the option of the person required to collect and/or remit the d
tax, such person shall remit an estimated amount of tax measured by the tax billed in the
previous month or upon the payment pattern of the service user, which must be received ?'
by the Tax Administrator on or before the twentieth (20th) day of the following month,
provided that such person shall submit an adjusted payment or request for credit, as c
appropriate, within sixty (60) days following each calendar quarter. The credit, if c
approved by the Tax Administrator, may be applied against any subsequent remittance 2
that becomes due.
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3.10.070 Collection of Tax from Service Users Receiving Direct Purchase of Gas or
Electricity. Q.
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(a) Any_service user subject to the tax imposed by Section 3.10.050 or by Section E
3.10.060 of this Chapter, which produces gas or electricity for self-use regardless of 0
technology used to produce such gas or electricity; which receives gas or electricity, Q
including any related supplemental services, directly from a non-utility service supplier
not under..the jurisdiction of this Chapter; or which, for any other reason, is not having.the o
full tax collected and,remitted by its service supplier, a non-utility service supplier, or its
billing agent on the use of gas .or :electricity in the City, including any related
supplemental services, shall report said fact to the Tax Administrator and shall remit the 12
tax due directly to the Tax Administrator within thirty(30) days of such use,based on the c
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charges for, or value-of, such gas or.electricity, or supplemental services, as.provided in
subsection (b). In lieu of paying said actual tax, the service user may, at its option, remit
to the Tax Administrator within thirty (30) days of such use an estimated amount of tax
measured by the tax billed in the previous month, or upon the payment pattern of similar
customers of the service supplier using similar amounts of gas or electricity, provided 'aO
that the service user shall submit an adjusted payment or request for credit, as
appropriate, within sixty (60) days following each calendar quarter. The credit, if
approved by the Tax Administrator in writing, may be applied against any subsequent tax
bill that becomes due. ei
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(b) The Tax Administrator may require said service user to identify its non-utility service
supplier, and otherwise provide, subject to audit: invoices; books of account; or other w
satisfactory evidence documenting the quantity of gas or electricity used, including any
related supplemental services, and the cost or price thereof. if the service user is unable E
to provide such satisfactory evidence; or if the administrative cost of calculating the tax
in the opinion of the Tax Administrator is excessive, the Tax Administrator may cc
determine the tax by applying the tax rate to the equivalent charges the service user Q
would have incurred if the gas or electricity used, including any related supplemental
services, had been provided by the service supplier that is the primary supplier of gas or
12
Packet"P.g:1$.3
Exhibit A
electricity within the City. Rate schedules for this purpose shall be available from the
City.
3.10.080 Video Users' Tax.
x
(a) There is hereby imposed a tax upon every person in the City using video services.
The tax imposed by this section shall be at the rate of five percent(5%) of the charges
made-for such services and shall be collected from the service user by the video service
supplier; or its billing agent: There is a rebuttable presumption that video services,which
are billed to a billing or service address in the City, are used, in whole or in part,within
the City's boundaries, and such services are subject to taxation under this Chapter. If the e
billing address of the service user is different from the service address, the service
address of the service user shall be used for purposes.of imposing the tax.
d
(b) As used'in this section, the term"charges" shall include,but is not limited to, charges
for the following:
a
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(1) regulatory fees and surcharges, franchise fees and access fees (PEG); c
N
(2) initial installation of equipment necessary for provision and receipt of video .L�0
services; a
(3) late fees, collection fees,bad debt recoveries, and return check fees; o
(4) activation-fees,reactivation fees, and reconnection fees;
(5) video programming and video services; c.
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(6) ancillary video programming services (e.g., electronic program guide
services, search functions,recording functions, or other interactive services or
communications that are ancillary,necessary or common to the use or enjoyment =
of the video services);
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(7) equipment leases (e.g.,remote, recording and/or search devises; converters);
and,
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(8) service calls, service protection plans, name changes, changes of services, and q�
special services.
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(c).As used.in this section, the term"charges"shall include the value of any other W
services, credits,property of every kind or nature, or other consideration provided by the
service user in exchange for the video services.
(d)The Tax Administrator may issue and disseminate to video service suppliers, which a
are subject to the tax collection requirements of this Chapter, an administrative ruling
13
__Packet Pg,134
ZA.b
Exhibit A
identifying those video services, or charges therefor,that are subject to or not subject to
the tax of subsection(a) above.
(e) The tax imposed by this section shall be collected from the service user by the video
service supplier, its billing agent, or a reseller of such services. In the case of video X
service,the service user shall be deemed to be the purchaser of the bulk video service
(e.g., an apartment owner),unless such service is resold to individual users, in which case
the service user shall be the ultimate purchaser of the video service. The amount of tax
collected in one (1)month shall be remitted to the Tax Administrator, and must be ''
received by the Tax Administrator on or before the twentieth(20th) day of the following _
month. L
,°
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3.10.090 Water Users' Tax.
d
(a) There is imposed a tax upon every person using water in the City which is w
transported and delivered through a pipeline distribution system. The tax imposed by this
section shall be at the rate of five percent(5%) of the charges made for such water. C
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(b) As used in this section, the term"charges" shall apply to all services, components N
and items that are: i) necessary for or common to the receipt,use or enjoyment of water 0
service; or, ii) currently are or historically have been included in a single or bundled rate a
for water service by a local distribution company to a class of retail customers. The term H
"charges" shall include, but is not limited to,the following charges: water commodity o
charges (potable and non-potable); distribution or transmission charges; metering
charges; customer charges; fire protection services; late charges; service establishment or _
reestablishment charges; franchise fees; franchise surcharges; annual and monthly 19
charges; and other charges, fees and surcharges which are necessary for or common to c
the receipt,use or enjoyment of water service; and, charges, fees, or surcharges for water
services.or programs, which are mandated by a water district or a state or federal agency, d
whether or not such charges; fees, or surcharges appear on a bundled or line item basis on
the customer billing.
O
(c) As used in this section,the term "charges" shall include the value of any other
services, credits,property of every kind or nature, or other consideration provided by the
service user in exchange for the water services.
0
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(d) The Tax Administrator, from time to time; may survey the water service suppliers in
the City to identify the various unbundled billing components of water retail service that 3
they commonly provide to residential and commercial/industrial customers in the City, w
and the charges therefor, including those items that are mandated by a water district or,a
state or federal agency as a condition of providing such water service. The Tax
Administrator,thereafter, may issue and disseminate to such water service suppliers an
administrative ruling identifying those components and items which are: i) necessary for
or common to the receipt,use or enjoyment of water service; or, ii) currently are or ¢
historically have been included in a single or bundled rate1or water service by a local
14
Paeket'Pg. 135
Exhibit A
distribution company to a class of retail customers. Charges for such components and
items shall be subject to the tax of subsection(a) above.
(e) The tax on water service imposed by this section shall be collected from the service
user by the water service supplier or its billing agent. The amount of'tax collected in one X
(1)month shall be remitted to the Tax Administrator, and.must be received by the Tax F'
Administrator on or before the twentieth(20th) day of the-following month.
N
3.10.100 Sewer Users' Tax
w
(a) There is hereby imposed a tax upon every person in the City using sewer services
within the City. The tax imposed by this section shall be at the rate of five percent(5%) 0
of the charges made for such sewer service. The tax shall be paid by the person using 2
such sewer service. d
w
(b) As.used in this section;.the term"charges" shall apply to all services, components
and items that are: i)necessary for or common to the receipt,use or enjoyment of sewer �
service; or, ii) currently are or historically have been included in a single or bundled rate _
for sewer service to retail customers. The term"charges"shall include,but is not limited 'N
to, the following charges: customer charges, late charges, service establishment or .L0
reestablishment charges, annual and monthly charges, and other charges, fees:and a
surcharges which are necessary for or common to the receipt,use or enjoyment of sewer N
service; and, charges, fees, or.:surcharges for sewer services or programs, which are o
mandated by the City, a state or federal agency, whether or not such charges, fees, or 3
surcharges appear on a bundled or line item basis on the:customer billing. d
(c) The tax on sewer service imposed by this section shall be collected from the service c
user by the sewer service supplier or its.billing agent. The amount of tax collected in one
(1)month shall be remitted to the Tax Administrator, and must be received by the Tax
Administrator on or before the twentieth(20`h) day of the following month.
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3.10.110 Refuse Collection and Disposal Users' Tax. o
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(a) There is imposed a tax upon every person using refuse collection and disposal
services provided by a refuse collector in the City. There is also imposed a tax upon
every person in the City that delivers refuse directly to a transfer station or disposes of of
trash or refuse at any City-owned landfill. The tax imposed by this section shall be at the a
rate of five percent(5%) of the charges for the collection and.disposal of refuse. The tax B
shall be paid by the person using such refuse and trash collection or disposal service. w
(b) As used in this section,the term"charges" shall apply,to all services, components d
and items that are: i)necessary for or common to the receipt,use or enjoyment of refuse
collection and disposal services; or, ii) currently are or historically have been included in
a single or bundled rate for refuse collection and disposal services to.retail customers. a
The term"charges"shall include,but is not limited to,the,following charges: customer
charges, late charges, service establishment or reestablishment charges, annual and
15
'.Packet!Pg. 136
Exhibit A
monthly charges, and other charges, fees and surcharges which are necessary for or
common to the receipt,use or enjoyment of refuse collection and disposal services;'and,
charges, fees, or surcharges for refuse collection and disposal services or programs,
which are mandated by the City, a state or federal agency,whether or not such charges,
fees, or surcharges appear on a bundled or line item basis on the customer billing. X
F-
(c) The tax imposed upon every person in the City that delivers refuse directly to a
d
transfer station or city-owned landfill shall be collected from the service user by the :3
' operator of the transfer station. The transport station or City-owned landfill operator shall ?'
r
not collect the tax from any person who-shows proof, in a form deemed satisfactory by
the tax administrator,that the person's place of primary use is outside the City'.s c
jurisdiction. The amount of tax collected by the transfer station or city-owned landfill c
operator in one month shall be remitted to the tax administrator, and must be received by
the tax administrator on or before the twentieth(20th) day of the following month. v
wa�
9
(d) The.tax on imposed by this section on every person in the City using refuse '0
collection and disposal services provided by the refuse collector shall be collected from
the service user by the refuse collector or its billing agent. The amount of tax collected in c
one(1)month shall be remitted to the Tax Administrator, and must be received by the 'N
Tax Administrator on or before the twentieth(20th) day of the following month.
a
3.10.120 Maximum tax payable.
0
(a) In an effort to mitigate the impact that a utility users' tax may have on a given
service.user, limits may be set on the total amount of taxes to be paid annually by a
service user at one location under the provisions of this Chapter. Any such limits(annual
maximum amount) shall be-established by City Council Resolution. M
(b) A service user may deposit,the maximum tax per subsection(a) of this section with
the Tax Administrator during the month of April each year as payment in advance of
taxes due under this chapter for the twelve-month period commencing the first day of that C
month and ending:on.March 31 thereafter. Any service user making a deposit of °cS
maximum tax shall not thereafter be billed for any tax under this chapter for that twelve- 0
month period. The Tax Administrator shall notify each service supplier when to cease
and when to resume billing the tax to such service users.
(c). Any Service User paying more than a maximum tax provided for in subsection(a) of
this section during any twelve-month period commencing April 1 and ending March 31, of
may claim a refund or credit for such overpayment from the Tax Administrator. a
(d). The term "one location" as used in subsection(a) of this section shall mean one or B
more contiguous sites from which the service user receives one or more utility billings. w
3.10.130 Senior low-income exemption.
(a) The taxes imposed by this Chapter shall not apply to any person who is the head of a
household and both: (1) 65 years of age or older; and(2)meets the low-income a
requirements for residents of San Bernardino County as established annually by the
California Department of Housing and Community Development.
16
-Packet Pg. 137-
:-
Exhibit A
(b)To qualify for the exemption set forth in this section,the person shall file an
application in the form, time and manner prescribed by the Tax Administrator.
(c The tax Administrator shall, within 60'days of receipt of an application for exemption,
determine whether the exemption is granted, and if so, notify the service supplier.
(d)The exemption granted to aperson pursuant to this section shall become effective on
the beginning.of the first regular billing period which commences after the tax !7
administrator has_notified the service su, lier that an exem tion has been i
p. p granted. Upon d
a showing of hardship by a service supplier or the City, the Tax Administrator may, as an
alternative, implement this Section 3.10.130 by requiring the exempt person to pay the
tax and seek a refund under Section 3.10.230. The Tax Administrator shall provide a
refund claim form for this purpose. `o
3.10.140 Bundling Taxable Items. 2
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If any nontaxable charges are combined with and not separately stated from taxable w
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service charges on the customer bill or invoice of a service supplier,:the.combined charge
is subject to tax unless the service supplier identifies,by reasonable and verifiable
standards,the portions of the combined charge that are.nontaxable and taxable through
the service supplier's books and records kept in the regular course of business, and in 'N
accordance with generally accepted accounting principles, and not created and =
maintained for tax purposes. If the service supplier offers a combination of taxable and a
non-taxable services, and the charges are separately stated,then for taxation purposes,the
values assigned the taxable and non-taxable services shall be based on its books and o
records kept in the regular course of business and in accordance with generally accepted
accounting principles, and not created and maintained for tax purposes. The service
supplier has the burden of proving the proper valuation and apportionment of taxable and
non-taxable charges. c
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v
3.10.150 Substantial Nexus/Minimum Contaet. d
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For purposes of imposing a tax or establishing a duty to collect and remit a tax.under this c
a
Chapter, "substantial nexus" and"minimum contacts" shall be construed'broadly in favor p
of the imposition, collection and/or remittance of the utility users' tax to the fullest extent
permitted by State.and Federal law, and as it may change from time to time by-judicial
interpretation or by.statutory enactment. Any telecommunication service(including
VoIP)used by a person with a.service address in the City, which service is capable of o�
terminating a call to another person on the.general telephone network, shall be subject-to
a rebuttable presumption that"substantial nexus/minimum contacts" exists for purposes B
of imposing a tax, or establishing a duty to collect and remit a tax,under this Chapter. A w
service.supplier shall be deemed to have sufficient activity in the City for tax collection
and remittance purposes if its activities-include,but are not limited to, any of the
following: maintains or has within the City, directly or through an agent or subsidiary, a
place.of-business of any nature; solicits business,in the City by employees, independent cc
contractors, resellers, agents or other representatives; solicits business in the City on a Q
continuous,regular, seasonal or systematic basis by means of advertising that.is broadcast
or relayed from a transmitter with the City or distributed from a location with the City; or
17
Packet.P.,g, 138
Exhibit A
advertises in newspapers or other periodicals printed and published within the City or
through materials distributed in the City by means other than the United States mail; or if
there are activities performed in the City on behalf of the service supplier that are
significantly associated with the service supplier's ability to establish and maintain a
market in the City for the provision of utility services that are subject to a tax under this X
Chapter. F'
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3.10.160 Duty to Collect Procedures. D
(a) Collection by Service Suppliers: The duty of service suppliers to collect and remit
the taxes imposed by the provisions of this Chapter shall be performed as follows: 1.`o
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(1) The tax shall be collected by service suppliers insofar as practicable at the 2
same time as, and along with,the collection of the charges made in accordance with the 07
regular billing practice of the service supplier. Where the amount paid by a service user
w
to a service supplier is less than the full amount of the charge and tax which was accrued
for the billing period, a proportionate share of both the charge and the tax shall beCL
deemed to have been paid. In those cases where a service user has notified the service
supplier of refusal to pay the tax imposed on said charges, Section 3.10.916 shall apply. .N
•L
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(2) The duty of a service supplier to collect the tax from a service user shall Q
commence with the beginning of the first regular billing period applicable to the service
user where all charges normally included in such regular billing are.subject to the 0
provisions of this Chapter. Where a service user receives more than one billing, one or
more being for different periods than another, the duty to collect shall arise separately for _
each billing period.
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0
(b) Filing Return and Payment: Each person required by this Chapter to remit a tax
shall file a return to the Tax Administrator, on forms approved by the Tax Administrator,
on or before the due date. The full amount of the tax collected shall be included with the
return and filed with the Tax Administrator. The Tax Administrator is authorized to .,�—a
require such additional information as he or she deems necessary to determine if the tax 0`
is being levied, collected, and remitted in accordance with this Chapter. Returns are due
immediately upon cessation of business for any reason. Pursuant to Revenue and Tax
Code Section 7284.6,the Tax Administrator, and its agents, shall maintain such filing
returns as confidential information that is exempt from the disclosure provisions of the pi
Public Records Act. a
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3.10.170 Collection Penalties-Service Suppliers. w
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'(a) Taxes collected from a service user are delinquent if not received by the Tax 0
Administrator on or before the due date. Should the due.date occur on a weekend or legal
holiday,the return must be received by the Tax Administrator.on the first regular
working day following the weekend or legal holiday. A direct deposit, including q
electronic fund transfers and other similar methods of electronically exchanging monies
between financial accounts, made by a service supplier in satisfaction of its obligations
18
Packet Pg.139
Exhilbit.A
under this Chapter shall be considered timely if the transfer is initiated on or before the
due date, and the transfer settles into the City's account on the following business day.
(b) If the person required to collect and/or remit the utility users' tax fails to collect the
tax(by failing to properly assess the tax on one or more services or charges on the X
customer's billing) or fails to remit the tax collected on or before the due date,the Tax
Administrator shall attach a penalty for such delinquencies or deficiencies at the rate of
fifteen percent(15%) of the.total tax that is delinquent or deficient in the remittance; and
shall pay interest at the rate of seventy-five one-hundredths percent (0.75%)per month, '
or any fraction thereof, on the amount of the tax, exclusive of penalties,from the date on
which the remittance first became delinquent,until paid.. `o
(c) The Tax Administrator shall have the power to impose additional penalties upon
persons required to collect and remit taxes pursuant to the provisions of this Chapter for d
fraud or gross negligence in reporting or remitting at the rate of fifteen percent(15%) of
w
the amount of the tax collected and/or required to be remitted, or as recomputed by the
CL
Tax Administrator. co
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(d) For collection purposes only, every penalty imposed and such interest that is accrued
under the provisions of this Chapter shall become a part of the tax herein required to be .°c
paid.
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(e) Notwithstanding the foregoing, the Tax Administrator may, in his or her discretion, .c
modify the due dates.of this Chapter to be consistent with any uniform standards or c
procedures that are mutually agreed upon by other public agencies imposing a utility d
users' tax, or otherwise legally established,to create a central payment location or
mechanism. c
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3.10.180 Actions to Collect. d
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Any tax required to be paid by a service user under the provisions of this Chapter shall be
V
deemed a debt owed by the service user to the City. Any such tax collected from a service p
user which-has not been remitted to the Tax Administrator shall be deemed a debt owed
to the City by the person required to collect and remit and.shall no longer be a debt of the
service user..Any person owing money to the City under the provisions of this Chapter
shall be liable to an action brought in the name of the City for the recovery of such
amount, including penalties and interest as provided for in this Chapter; along with any a
collection costs incurred by the City as a result of the person's noncompliance with this 3
Chapter, including,but not limited to,reasonable attorneys' fees. Any tax required to be w
collected by a service'supplier or owed by a service user is an unsecured priority excise c
tax obligation under 11 U. S. CA. Section 507(a)(8)(C). Service suppliers who seek to E
collect charges for service in bankruptcy proceedings shall also include in any such claim
the amount of taxes due the City for those services,unless the Tax Administrator
determines that such duty is in conflict with any federal or state law;rule, or regulation or Q
that such action would be administratively impractical.
19
'� Packet Pg: 140
Exhibit A
3.10.190 Deficiency Determination and Assessment-Tax Application Errors.
(a) The Tax Administrator shall make a deficiency determination if he or she determines
that any person required to pay or collect taxes pursuant to the provisions of this Chapter
has failed to pay, collect, and/or remit the proper amount of tax by improperly or failing :X
to apply the tax to one or more taxable services or charges. Nothing hereinshall require E'
that the Tax Administrator institute proceedings under this Section 3.10.190 if, in the d
opinion of the Tax Administrator,the cost.of collection or enforcement likely outweighs
the tax benefit.
(b) The Tax Administrator shall mail a notice of such deficiency determination to the c
person required to pay or remit the tax,which notice shall refer briefly to the amount of
the taxes owed,plus interest at the rate of seventy-five one-hundredths-percent(0.75%)
per month, or any.fraction thereof, on the amount of the.tax from the date on which the
tax should have been received b the City. Within fourteen 14 calendar days after the w
Y tY• ( ) Y �
date of service of such notice,the person may request in writing to the Tax Administrator
for a hearing on the matter. C
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(c) If the person fails to request a hearing within the prescribed time period,the amount
of the deficiency determination shall become a final assessment, and shall immediately .°_
be due and owing to the City. If the person requests a hearing, the Tax Administrator a
shall cause the matter to be set for hearing,which shall be scheduled within thirty(30)
days after receipt of the written request for hearing.Notice of the time and place of the o
hearing shall be mailed by the Tax Administrator to such person at least.ten(10) calendar
days prior to the-hearing, and, if the Tax Administrator desires said person to produce
specific records at such hearing, such notice may designate the records.requested to be
produced. o
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(d) At the time fixed for the hearing, the Tax Administrator shall hear all relevant
testimony and evidence, including that of any other interested parties. At the discretion.of
the Tax Administrator,the hearing may be continued from time to time for the purpose of E
allowing the presentation of additional evidence. Within a reasonable time following the 0
conclusion of the hearing, the Tax Administrator shall issue a final assessment(or non-
assessment),thereafter, by confirming, modifying or rejecting the original deficiency
determination, and shall mail a copy of such final assessment to person owing the tax.
The decision of the Tax Administrator may be appealed pursuant to Section 3.10.240 of of
this.Chapter. Filing an application with the Tax_Administrator and appeal to the City a
Administrator, or designee,pursuant to Section 3.10.240 of this Chapter is a prerequisite
to a suit thereon. w
(e) Payment of the final assessment shall become delinquent if not received by the Tax
Administrator on or before the thirtieth(30th) day following the date of receipt of the
notice of final assessment. The penalty for delinquency shall be fifteen.percent(15%).on
the total amount of the assessment, along with interest at the rate of seventy-five one- a
hundredths percent(0.75%)per month, or any fraction thereof, on the amount of the tax,
exclusive of penalties, from the date of delinquency,until paid. The applicable statute of
20
Packet Pg. 1_4'1.
Exhibit A
limitations regarding a claim by the Cityseeking payment of a tax assessed under this
Chapter shall commence from the date of delinquency as provided in this subsection(e)..
(f) All notices under this Chapter may be sent by regular mail,postage prepaid;and shall
be deemed received on the third calendar day following the date of mailing, as
established by a proof of mailing. 2
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d
3.10.200 Administrative Remedy-Non-Paying Service Users.
(a) Whenever the Tax Administrator determines that a service user has deliberately
withheld the amount of the tax owed by the service user.from the amounts remitted to a c
person required to collect the tax, or whenever the Tax Administrator deems it in the best c
interest of the City,he-or she may relieve such person of the obligation to.collect the
taxes due under this Chapter from certain named service users for specific billing periods. w
To the extent the service user has failed to pay the amount of tax owed for a period of
two (2) or more billing periods,the service supplier shall be relieved of the obligation to
collect taxes-due. The service supplier shall provide the City with the names and cn
addresses of such:service users and the amounts of taxes owed under the provisions of
this Chapter.Nothing herein shall require that the Tax Administrator institute °L
proceedings under this Section 3.10.200 if; in the opinion of the Tax Administrator,the ,°_
cost of collection or enforcement likely outweighs the tax:benefit. a
i
N
(b) In addition to the tax owed, the service users-hall pay a delinquency penalty at-the c
rate of fifteen percent(15%) of the total tax that is owed, and shall pay interest at.the rate c
of seventy-five one=hundredths percent(0.75%)per month, or any fraction thereof, on the d
amount of the tax, exclusive of,penalties, from the due date,until paid.
ti
0
(c) The Tax Administrator shall notify the non-paying service user that the Tax
Administrator has assumed the responsibility to collect the taxes due for the stated
periods and demand payment of such taxes,including penalties and interest. The notice
shall be served on the service user by personal delivery or by deposit of the notice in the
'a
United States mail,-postage prepaid,addressed to the service user at the address to which p
billing.was made by the person required to collect the tax; or, should the service user
have a change of address,to his or her last known address.
cc
L
(d) If the service user fails to remit the tax to the Tax Administrator within thirty(30)
days from the date of the service of the notice upon him or her, the Tax Administrator- a
may impose an additional penalty of fifteen percent(15%) of the amount of the total tax :Q
L
that is owed. w
jj
3.10.210 Additional Powers and Duties of the Tax Administrator. 0
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(a) The Tax Administrator shall have the power and duty, and is hereby directed,to - cc
enforce each and all of the provisions of this Chapter. a
21
Packet.Pg, 142-
Exhibit A
(b) The Tax Administrator may adopt administrative rules and regulations consistent
with provisions of this Chapter for the purpose of interpreting, clarifying, carrying out
and enforcing the payment, collection and remittance of the.taxes herein imposed. The
administrative ruling shall not impose a new tax,revise an existing tax methodology as
stated in this Chapter, or increase an existing tax, except as allowed by California
Government Code Section 53750(h)(2). A copy of such administrative rules and !7
regulations shall be on file in the Tax Administrator's office. To the extent that the Tax d
Administrator determines that the tax imposed under this Chapter shall not be collected in
full for any period of time.from any particular service supplier or service user,that
determination shall be considered an exercise of the Tax Administrator's discretion to
settle disputes and shall not constitute a change in taxing methodology for purposes of c
Government Code Section 53750 or otherwise. The Tax Administrator is not authorized
to amend the City's methodology for purposes of Government-Code Section 53750 and
the City does not waive or abrogate its ability to impose the utility users' tax in full as a d
result of promulgating administrative rulings or entering into agreements. w
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(c) Upon a proper showing of good cause, the Tax Administrator may make �n
administrative agreements, with appropriate conditions,to vary from the:strict =
requirements of this Chapter and thereby: (1) conform to the billing procedures of a 'N
particular service supplier so long as said agreements result in the collection of the tax in 0
conformance with the general purpose and scope of this.Chapter; or, (2)to avoid a
hardship where the administrative costs of collection and remittance greatly outweigh the
tax benefit.A copy of each such agreement shall be on file in the Tax Administrator's o
office, and are voidable by the Tax Administrator or the City at any time. w
(d) The Tax Administrator may conduct an audit,to ensure proper compliance with the
requirements-of this Chapter, of any person required to collect and/or remit a tax pursuant c
to this Chapter. The Tax Administrator shall notify said person of the initiation of an
audit in writing. In the absence of fraud or other intentional misconduct,the audit period d
of.review'shall not exceed a period of three(3) years next preceding the date of receipt of
the written notice by said person from the Tax Administrator.,Upon completion of the 5
audit,the Tax Administrator may make a deficiency determination pursuant to Section O
3.10.190 of this Chapter for all taxes (and applicable penalties and.interest) owed and not
paid; as evidenced by information provided by such person to the Tax Administrator. If
said person is unable or unwilling to provide sufficient records to enable the Tax
Administrator to verify compliance with this Chapter, the Tax Administrator is of
authorized to make a reasonable estimate of.the deficiency. Said reasonable estimate shall
be entitled to a rebuttable presumption of correctness. Z
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x
(e) Upon receipt of a written request of a taxpayer, and for good cause,the Tax c
Administrator may extend the time for filing any statement required pursuant to this 0)
Chapter for a period of not to exceed forty-five (45) days,provided that the time for filing
the required statement has not already passed when the request is received. No penalty
for delinquent payment shall accrue by reason of such extension. Interest shall accrue
a
during said extension at the rate of seventy-five one-hundredths percent(.0.75%)per
month,prorated for any portion thereof.
22
Packet'Pg; 143
Exhibit A
(fl The Tax Administrator shall determine the eligibility of any person who asserts a
right to:exemption from, or a refund of,the tax imposed by this Chapter.
1
(g) Notwithstanding any provision in this Chapter to the.contrary,the Tax Administrator
may waive any penalty or interest imposed upon a person required to collect and/or remit X
for failure to collect the tax-imposed by this Chapter if the non:collection occurred in E'
good faith. In determining whether the non-collection was in good faith,the Tax
Administrator shall take into consideration the uniqueness of the product or service,
industry practice or other precedence. The Tax Administrator may also participate:with.
other utility users' tax public agencies.in conducting coordinated compliance reviews
with the goal of achieving administrative efficiency and uniform tax application c
determinations, where possible. To encourage full disclosure and on-going cooperation.
on annual compliance reviews,the Tax Administrator; and its agents, may enter into 2
agreements with the tax-collecting service providers,and grant prospective only effect on
any changes regarding the taxation of services or charges that were previously deemed by w
the service provider, in good faith and without gross negligence,to be non-taxable. In
determining whether the non-collection was in good faith and without gross negligence, C
the Tax.Administrator shall take into consideration the uniqueness of the product or c
service,.industry practice or other precedence. N
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110.220 Records. a
N
(a) It shall be the duty of every person required to collect and/or remit-to the City any tax 2
imposed by this Chapter to keep and preserve, for a period of at least three (3)years, all S
records as may be necessary to determine the amount of such tax as he/she may have
been liable for the collection of and remittance to the Tax Administrator,which records
the Tax Administrator shall have the right to inspect at a reasonable time. c
M
v
(b) The City may issue an administrative subpoena to compel a person to deliver,to the
Tax Administrator, copies of all records deemed necessary by the Tax Administrator to-
cc
establish compliance with this Chapter, including the delivery of records in.a common 5
electronic format on readily available media if such records are kept electronically by-the 0
person in the usual and ordinary course of business. As an alternative to delivering the
subpoenaed records to the Tax Administrator on or before the due date provided in the
administrative subpoena, such person may provide access to such records outside the City ego
on or before the due date,provided that such person shall reimburse the City for all , o
a'
reasonable travel expenses incurred by the City to inspect those records; including travel, F,
lodging,meals, and other similar expenses,but excluding the normal salary or hourly
wages of those persons designated by the City to conduct the inspection. X
(c) The Tax Administrator is authorized to execute a non-disclosure agreement approved
by the City Attorney to protect the confidentiality of customer information pursuant to
California Revenue and Tax Code Sections 7284.6 and 7284.7.
.Q
(d) If a service supplier uses a billing agent or billing aggregator to bill, collect, and/or
remit the tax,the service supplier shall: 1)provide to the Tax Administrator the name,
23
`Packet,Pg:.144
.-
Exhibit A
address and telephone number of each billing agent and billing aggregator currently
authorized by the service supplier to bill, collect, and/or remit the tax to the City; and, 2)'
upon request of the Tax Administrator, deliver, or effect the delivery of, any information
or records in the possession of such billing agent or billing aggregator that, in the opinion
of the Tax Administrator; is necessary to verify the.proper application, calculation, X
collection and/or remittance of such tax to the City.
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(e) If any person subject to record-keeping under this Chapter unreasonably denies the
Tax Administrator access to such records, or fails to produce the information requested in
an administrative subpoena within the time specified,then the Tax Administrator may
impose a penalty of Five Hundred Dollars ($500.00) on such person for each day `o
following: 1) the initial date that the person refuses to provide such.access; or,2)the due
date for production of records as set forth in the administrative subpoena. This penalty 2
shall be in addition to any other penalty imposed under this Chapter.
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3.10.230 Refunds
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Whenever the amount of any tax has been overpaid or paid more than.once or has been c
erroneously or illegally collected or received by the Tax Administrator under this Chapter :L
from a person or service supplier, it may be refunded as provided in this Section as ,0
follows: a
(a) Written Claim for Refund: The Tax Administrator may refund any tax that has c
been overpaid or paid more than once or has been erroneously or illegally collected or —
received by the Tax Administrator under this Chapter from a person or service supplier,
provided that no refund shall be paid under the provisions of this Section unless the
claimant or his or her guardian, conservator, executor, or administrator has submitted a c
written claim to the Tax Administrator within one year of the overpayment or erroneous .rM.
or illegal collection of said tax. Such claim must clearly establish claimant's right to the
refund by written records showing entitlement thereto.Nothing herein shall permit the C
filing of a claim on behalf of a class or group of taxpayers unless each member of the
class has submitted a written claim under penalty of perjury as provided by this Section. 0
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(b) Compliance with Claims Act: The filing of a written claim pursuant to Government
Code Section 935 is a prerequisite to any suit thereon. Any action brought against the
City pursuant to this Chapter shall be subject to the provisions of Government Code
Sections 945.6 and 946. The Tax Administrator, City Manager or the City Council shall Q
act upon the refund claim within the time period set forth in Government Code Section Q
912.4 based on the following claim amounts: (1) claims up to $1,000.00—Tax w
Administrator; (2)claims over$1,000.00 but less than$5,000.00—City Manager; (3)
claims of$5,000.00 or more—City Council. If the Tax Administrator/City Manager/City E
Council fails or refuses to act on a refund claim within the time prescribed by
Government Section 912.4, the claim shall be deemed to have been rejected by the City
on the last day of the period within which the City was required to act upon the claim as
provided in Government Code Section 912.4. The Tax Administrator shall give notice of
24
Packet Pg. 145
Exhibit A
the action in a form which substantially complies with that set forth in Government Code
Section 913.
(c) Refunds to Service Suppliers: Notwithstanding the notice provisions of subsection
(a) of this Section,the Tax Administrator may, at his or her discretion; give written
permission to a service supplier, who has collected and remitted any amount of tax in F"
excess of the amount of tax imposed by this Chapter,to claim credit for such m
overpayment against the amount of tax which is due the City upon a subsequent monthly
returns)to the Tax Administrator,provided that,-prior to taking such credit by the
service supplier: 1) such credit is claimed in a return dated no later than-one year from the
date of overpayment or erroneous collection of said tax; 2)the Tax Administrator is `o
satisfied that the underlying basis and amount of such credit has been reasonably
established; and, 3) in the case of an overpayment by a service user to the service supplier 2
that has been remitted to the City,the Tax Administrator has received proof,to his or her d
satisfaction,that the overpayment has been refunded by the service supplier to the service
user in an amount equal to the requested credit. 'r
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3.10.240 Appeals. _
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(a) The provisions of this Section apply to any decision(other than a decision relating to 0
a refund pursuant to Section 3.10.230 of this Chapter), deficiency determination, a
assessment, or administrative ruling of the Tax Administrator. Any person aggrieved by _
any decision(other than a decision relating to a refimd pursuant to Section 3.10.230 of e
this Chapter), deficiency determination, assessment, or administrative ruling of the Tax
` Administrator, shall be required to comply with the appeals procedure of this'Section.
Compliance with this Section shall be a prerequisite to a suit thereon. [See Government
Code Section 935(b)].Nothing herein shall permit the filing of a claim or action onco
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behalf of a class,or.group of taxpayers.
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(b) If-any person is aggrieved.by any decision.(other than a decision relating to a refund r_
pursuant to Section 3.10.230 of this Chapter), deficiency determination, assessment, or
administrative ruling of the Tax Administrator; he or she may appeal to the City - p`
Manager, or designee,by filing a notice of appeal with the City Clerk within fourteen
.(14) days of the date of the decision, deficiency determination, assessment, or
administrative ruling of the Tax Administrator which aggrieved the service user or
service supplier. of
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(c) The matter shall be scheduled for hearing before an independent hearing officer
selected by the City Manager, or designee,no more than thirty(30) days from the receipt w
of the appeal. The appellant shall be served with notice of the time and place of the '41
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hearing, as well as any relevant materials, at least five(5).calendar days prior to the
hearing. The hearing may be continued from time to time upon mutual consent. At the
time of the hearing,the appealing party,the Tax Administrator, and-any other interested
person may present such relevant evidence as he or she may have relating to the a
determination from which the appeal is taken.
25
.-Packet Pg.;146
- 7.Aai
Exhibit A
(d) Based upon the submission of such evidence and the review of the City's files,the
hearing officer shall issue a written notice and order upholding, modifying or reversing
the determination from which the appeal is taken. The notice shall be given within
fourteen(14) days after the conclusion of the hearing and shall state the reasons for the
decision. The notice shall specify that the decision is final and that any petition for X
judicial review shall be filed within ninety(90)days from the date of the decision in
accordance with Code of Civil Procedure Section 1094.6.
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(e) All notices under this Section may be sent by regular mail,postage:prepaid, and shall
be deemed received on the third calendar day following the date of mailing, as
established by a proof of mailing. c
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3.10.250 No Injunction/Wi•it of Mandate.
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No injunction or writ of mandate or other legal or equitable process shall issue in any
suit, action, or proceeding in any court against this City or against any officer of the City �a)
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to prevent or enjoin the collection under this Chapter of any tax or any amount of tax to
required to be collected and/or remitted. _
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3.10.260 Notice of Changes to Ordinance. ,0
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If a tax under this Chapter is added repealed, increased,reduced, or the tax base is
changed,the Tax Administrator shall follow the notice requirements of California Public c
Utilities Code Section 799.
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3.10.27.0 Effect of State and Federal Reference/Authorization.
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Unless specifically provided otherwise, any reference to a State or Federal statute in this
Chapter shall mean such statute as it may be amended from time to time,provided that
such reference to a statute herein shall not include any subsequent amendment thereto, or C
to any subsequent change of interpretation thereto by a State or Federal agency or court a
of law with the duty to interpret such law,to the extent that such amendment or change of p
interpretation would require voter approval under California law, or to the extent that
such change would result in a tax decrease (as a result of excluding all or a part of a
utility service, or charge therefor, from taxation). Only to the extent voter approval would
otherwise be required or a tax decrease would result, the prior version of the statute (or
interpretation) shall remain applicable; for any application or situation that would not Q
require voter approval or result in a decrease of a tax,provisions of the amended statute
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(or new interpretation) shall be applicable to the maximum possible extent. w
To the extent that the City's authorization to collect or impose any tax imposed under this
Chapter is expanded or limited as a result of changes in State or Federal law,no
amendment or modification of this Chapter shall be required to conform the tax to those
changes, and the tax shall be imposed and collected to the full extent of the authorization a
up to the full amount of the tax imposed under this Chapter.
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Pdcket Pg:147
Exhibit A
3.10.280 No Inerease in Tax Percentage or Change in Methodology Without Voter
Approval; Amendment or Repeal.
This Title 3,Chapter.3.10 of the Grand Terrace Municipal Code may be repealed or
amended by the City Council without a vote of the People. However, as required by, X
Chapter XIIIC of the.California Constitution,voter approval is required for any
amendment provision that would increase the rate of,any tax levied pursuant to this d
Ordinance. The People of the City of Grand Terrace affirm that the following actions D
shall not constitute an increase of the rate of a tax:
(1) The restoration of the rate of the tax to a rate that is no higher than that set by this `o
Ordinance,.if the City Council has acted to reduce the rate of the tax; c
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(2) An action that interprets.or clarifies the methodology of the tax,-or any definition d
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applicable to the tax, so long as such interpretation or clarification (even if contrary to
some prior interpretation or clarification) is .not inconsistent with the language of this '�
Ordinance; Un
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(3) The establishment a class of persons that is exempt or excepted from the tax or the- 'N
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discontinuation of any such exemption or exception (other than the discontinuation of an
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exemption or exception specifically set forth in this Ordinance); and a
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(4) The collection of the tax imposed by this ordinance, even if the City had, for some c
period of time, failed to collect the tax. c
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3.10.290 Independent Audit of Tax Collection,Exemption,Remittance, and
Expenditure. c
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The City shall annually verify that the taxes owed-under this Chapter have been properly
applied,.exempted, collected, and remitted in accordance with this Chapter, and properly
expended according-to applicable municipal law. The annual verification shall be E
performed by a qualified independent third party and the review shall employ reasonable, p`
cost-effective steps to assure compliance, including the use of sampling audits. The
verification shall not be required of tax remitters where the cost of the verification may
exceed the tax revenues to be reviewed.
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3.10.300 Citizens Oversight Committee a
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As soon as practical after the adoption of the ordinance codified in this Chapter,the City w
Council.shall appoint a Citizens Oversight Committee,which shall receive reports from c
the Tax Administrator at least annually on the implementation of this Chapter,the funds m
collected, and how funds collected are spent. The Citizens Oversight Committee,which
may make recommendations to the City Council on any matter relating to this Chapter, M
shall hold all meetings in compliance with the Ralph M. Brown Act. (California a
Government Code Section 54950, et seq.)
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:..Packet'Pg:148
--
Exhibit A
3.10.310 Remedies Cumulative.
All remedies and.penalties prescribed by this Chapter or which are available under any
other provision of law or equity, including but not limited to the California False Claims
Act (Government Code Section 12650 et seq.) and the California Unfair Practices Act X
(Business and Professions Code Section 17070 et seq.), are cumulative. The use of one !'
or more remedies by the City shall not bar the use of any other remedy for the purpose of d
enforcing the provisions of this Chapter.
3.10.320 Sunset of Tax.
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This Chapter 3.10 shall automatically sunset, and its provisions shall become ineffective, c
six years from the date of passage and approval by a majority of the electorate of the City 2
of Grand Terrace,.or November 5, 2019,whichever occurs first,provided that.the 0
provisions of Chapter 3.10 shall continue to apply for purposes of collection and W
enforcement of all taxes owed prior to such termination date.
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SECTION 2. Effective Date. This Chapter, if approved by the electorate of the City =
of Grand Terrace at the General Municipal Election of November 5, 2013 shall 'N
become effective immediately upon the declaration of the results of that election by 0
the City Council of the City of Grand Terrace. a
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SECTION 3. Severability.. If any section, subsection, sentence, clause,phrase, or 0
portion of this Ordinance is for any reason held to be invalid or unenforceable by a �.
court of competent jurisdiction,the remaining.portions-of this Ordinance shall
nonetheless remain in full force and effect. The People hereby declares that they
Would have adopted each section, subsection, sentence,.clause,phrase, or portion of c
this Ordinance, irrespective of the fact that any one or more sections, subsections,
sentences, clauses,phrases, or portions of this Ordinance be declared invalid or 0
unenforceable. c
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SECTION 4. Execution. The Mayor is hereby authorized to attest to the adoption of
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the Ordinance by the voters of the City by signing where indicated below.
I hereby certify that the foregoing Ordinance was PASSED, APPROVED
and ADOPTED by the People of the City of Grand Terrace, California voting on the
6th day of November 5, 2013. Q
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Mayor
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Packet Pg. 149
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Attachment: Exhibit-A—Draft UUT-Ordinance (1307 :-Resolutions Authorizing Special Electionfor Utility Users'Tax)
RESOLUTION NO: 2013- S
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND
TERRACE, CALIFORNIA, CALLING AND GIVING NOTICE OF THE N
HOLDING OF A SPECIAL MUNICIPAL ELECTION ON TUESDAY, `o
NOVEMBER 5, 2013, FOR SUBMISSION TO THE- VOTERS A
QUESTION RELATING TO A UTILITY USERS' TAX AND REQUESTING N
THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN c
BERNARDINO TO CONSOLIDATE THE SPECIAL MUNICIPAL '
ELECTION WITH THE CONSOLIDATED ELECTION TO BE- HELD
PURSUANT TO ELECTIONS CODE SECTION 10403 RELATING- TO
GENERAL LAW CITIES
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WHEREAS, under the provisions of the laws relating to general law cities in the
State of California, a Special Municipal Election shall be held on November 5, 2013. c
The City Council desires to submit to the voters at the election a question relating to:a
Utility Users' Tax; c
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NOW, THEREFORE, THE CITY COUNCIL OF THE . CITY OF GRAND H
TERRACE, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER
AS FOLLOWS:
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SECTION 1. Pursuant to the requirements of the laws of the State of-California
relating to General Law cities, there is called and ordered to be held in the City of Grand
Terrace, California,.:on Tuesday, November 5, 2013, a Special Municipal:Election for the
purpose of,submitting to the voters a question relating to a Utility. Users' Tax.
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SECTION 2. The City Council, pursuant to its. right and authority, does order
submitted to the voters at the Special Municipal Election the following question:
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Measure_ Utility Users' Tax Response. : Vote
To ensure Grand Terrace has the funds necessary to
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an independent city and able to provide essential services to:' d
residents including rapid response to 9-1-1 police Yes
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emergencies, maintenance/repair of local streets, adequate
police services, and maintaining parks and public facilities,.
shall the:City of Grand Terrace establish a utility users' tax of y
5% for six years only with independent citizen oversight, all No a,
money staying local; and an exemption for low-income
seniors? v
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SECTION 3. The Proposed complete text of the. Measure (Ordinance) submitted °
to the voters is attached as Exhibit"K. c
SECTION 4. The ballots to be used at the election shall be in the form and
content as required:by law.
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SECTION 5. The City Clerk, as the Elections Official, is authorized, .instructed '
and directed to procure and furnish any and all official ballots, notices, printer matter in
and all supplies, equipment and paraphernalia that may be necessary in order to
properly and lawfully conduct the-election. 'N
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SECTION 6. The polls for the- election shall be open at seven o'clock a.m. the
day of the election and shall remain open continuously from that time until eight o'clock H
p:m. of the same day when the polls shall be closed, except as -provided in Section o
14401 of the elections code of the State of California.
SECTION 7. In all particulars not recited in this-Resolution, the, election shall be 119
held and conducted as provided by law for holding municipal elections. o
SECTION 6:. That pursuant to the requirements-,of Section 10403 of the Elections
Code, the Board of Supervisors of the County of San Bernardino is hereby requested to
consent :and. agree to the consolidation of a Special Municipal Election: with the M�
Consolidated Election on Tuesday, November 5, 2013, for the purpose of submitting to N1
the voters a question:relating to a.Utility Users' Tax-. `
SECTION 7. The County Registrar of Voters is authorized to canvass the returns
of: the Special 'Municipal Election. The election shall be held in all steps.:necessary for �1
the holding of the consolidated election. c
SECTION 8. The Board of Supervisors is requested to issue. instructions to the .N
County Registrar of Voters to take any and all steps necessary for the holding of the c
consolidated election. V
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SECTION 9.'The City of Grand Terrace recognizes that additional costs will be d
incurred by .the County by reason of this consolidation and agrees to reimburse the
County for:any costs.
SECTION -10: Notice of the time and. place of holding the election :is given and c
the City Clerk, as the Elections Official, is authorized, instructed and directed to give
further or additional notice of the:election, in time, form and manner as required by law. w
Notwithstanding the generality of the foregoing, the City Clerk, as the Elections Official,
is hereby instructed to act in:conformance with California Elections Code Section 10403 'd
and to file-this Resolution with the Board of Supervisors of San Bernardino County and
to transmit a copy of the same to the San Bernardino County elections official.
SECTION 11. The City Clerk shall certify the adoption: of .this Resolution and
enter it'into the Book of Resolutions. c
PASSED, APPROVED AND ADOPTED this 23rd day of July; 2013.
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Mayor of the City of Grand Terrace E
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ATTEST:
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City Clerk of the City of Grand Terrace 'o
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I, TRACEY R: MARTINEZ, CITY CLERK of the City of Grand Terrace, do hereby c
certify that the foregoing Resolution was introduced and adopted-at a regular meeting of
the City Council of the City of Grand Terrace held on the 23rd day of July, 2013 by the
following vote:
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ABSENT: �I
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Please refer to previous Exhibit A, which followed the Resolution titled:
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"A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND
TERRACE, CALIFORNIA, -SUBMITTING TO THE VOTERS A QUESTION w
WHETHER THE CITY SHALL ENACT A UTILITY USERS' TAX"
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RESOLUTION NO. 2013-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND c
TERRACE, , -CALIFORNIA, SETTING PRIORITIES FOR FILING
WRITTEN ARGUMENTS REGARDING A CITY MEASURE
CONCERNING THE ENACTMENT OF A UTILITY USERS' TAX AND
DIRECTING THE CITY CLERK,: AS THE ELECTIONS OFFICIAL,. TO
PREPARE AN IMPARTIAL ANALYSIS REGARDING THE' SAME cn
MEASURE
WHEREAS., :A Special Municipal Election is to be held in 'the: _City of Grand
Terrace, California, on November 5, 2013,.at which there will be submitted to the voters a
the following measure:
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To ensure Grand Terrace has the funds necessary to remain an c
independent city and able to provide essential services to residents
including -rapid response to 9-1-1 police emergencies,
maintenance/repair of local streets, adequate police services, and o
maintaining parks .and public facilities, shall the City of Grand
Terrace establish a utility users tax of 5% for six years only with M
independent citizen oversight, all money staying local, and an N
exemption for low4ncome seniors? 2
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND
TERRACE, CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE AND-ORDER AS
FOLLOWS: ` a
SECTION 1. That the City Council authorizes the following Council Members to a
author the argument in favor of the Measure: 2s
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Any written argument in favor or against shall not exceed 300 words regarding d
the City Measure as specified above in accordance with Article 4, Chapter.3, Division 9 E
of the Elections Code of the State of California. a
Any written argument may not be signed by more than five authors.
Arguments shall be submitted to the City Clerk, as the Elections Official, no later
than August 6, 2013 at 5:00:p.m. Authors of the Arguments, either: for or against, may LL
change their arguments up to and including August 6, 2013 at 5:00 p.m.
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The arguments shall be filed with the City Clerk, as the Elections Official, signed, H
with the printed names and :signatures of the authors submitting it, or if submitted on
behalf of an organization, the name of the organization and the printed name and
signature of at least one of its principal officers who is the author of the argument. The
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Packet:P,g:,155
arguments shall be- accompanied by the Form of Statement To Be Filed By Authors of
Argument. c
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The following criteria will be used for the selection of Ballot Arguments:
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If more than one argument-for or. more .than one-argument against any City Measure is cc
submitted to the City Clerk, as the Elections Official; within the time prescribed, he or �
she shall select one of the arguments in. favor and one of: the arguments against the cn
Measure for printing and distributing to the voters. In selecting the arguments the City
Clerk, as the Elections Official, shall give preference and priority in the order names to N
the arguments of the:following:
a) The Legislative body or members of the legislative body authorized by that body.
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b) The individual voter, or bona fide association of citizens, or combination of votes
'and.associations, who are bona fide sponsors or proponents of the Measure..
c) Bona fide association of citizens. . o
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d) Individual voters who are eligible to vote on the Measure.
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If no arguments have been received in accordance with subsections (a), (b), or
(c) above, the City Clerk, as the Elections Official, will review the arguments N
received from individuals to .determine that the arguments are clear, d
unambiguous, and Written.with proper syntax. If these considerations are met
and are equal in all arguments, the authors will be. asked to witness random
drawing by a designee of: the City Clerk, as the Elections Official, to determine
which argument will be published. a
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SECTION 2. That the City Council directs the City,Clerk, as the Elections a
Official, to prepare the impartial analysis not exceeding 500 words showing the effect of E
the measure on the existing law and the operation of the measure, pursuant to Article 4,
Chapter 3, Division 9 of the Elections Code of the State of California. The impartial d
analysis shall be filed by the dates set for the filing of primary arguments. E
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SECTION 3. That the City Clerk shall certify to the passage and adoption of this d
resolution and enter it into the book of original resolutions.
PASSED, APPROVED AND ADOPTED by the City Council .of Grand Terrace at c
a regular meeting held on the 23rd day of July,.2013.
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Mayor of the.City of Grand Terrace
and the City Council thereof
ATTEST: d
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City Clerk of the City of Grand Terrace
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I, TRACEY R. MARTINEZ., CITY CLERK of the City of Grand Terrace, California, '0
do hereby certify that the foregoing Resolution was adopted at a.regular meeting of the y
City Council of the City of Grand Terrace held on the 23�d .day of`July, 2013, by the
following vote:
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APPROVED AS TO FORM:
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RESOLUTION NO. 2013-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND H
TERRACE, CALIFORNIA, PROVIDING: FOR THE FILING OF N
.REBU.TTALS REGARDING A CITY MEASURE CONCERNING THE
ENACTMENT OF A UTILITY USERS TAX '
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WHEREAS, Section -9285 of the Elections Code of the State of California o
authorizes the City Council, by majority vote, to adopt provisions to provide for the fling
of rebuttal arguments for City Measures submitted at municipal elections;: w
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NOW, THEREFORE; THE. CITY COUNCIL OF THE CITY OF GRAND �"
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TERRACE, CALIFORNIA, DOES HEREBY RESOLVE,_DETERMINE AND ORDER AS
FOLLOWS: 5
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SECTION I.,Pursuant to Section 9285 of the Elections Code of the State of
,.California, when the elections official has selected the .arguments for and- against the a
measure which will be printed and distributed to the voters, the elections official shall o
send a copy of an argument in favor of the-.measure to. the authors of any argument
against the measure :and a copy of an argument against the measure to the authors of y
any argument in favor of the measure immediately upon receiving the arguments.
The author or a majority of the authors of an argument relating to a city measure M
may prepare and submit a rebuttal argument not exceeding250 words or may authorize
in writing any other person or persons to prepare, submit, or-sign'the rebuttal argument.
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A rebuttal argument may not be signed by more than five authors. 2
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The:rebuttal arguments shall be filed with the City Clerk, signed, with the printed
names and signatures of the authors submitting it, or if submitted on behalf of an
organization, the name of the organization, and the printed name and= signature of at
least one A its principal officers,.no later than August 16, 2013 at:5:00 p.m. The rebuttal .�
arguments shall be accompanied by the Form of Statement To Be Filed .By Authors of
Arguments.
SECTION 2. That the:City Clerk shall certify to the passage and adoption of this
Resolution and enter it into the book of original Resolutions. c
PASSED, APPROVED AND ADOPTED by the City Council of Grand Terrace-at o
a-regular meeting held on the 23`d day of July, 2013. 3
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Mayor of the City of Grand Terrace E
and the City Council thereof
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ATTEST: ^,
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City Clerk of the City of Grand Terrace
I, TRACEY R. MARTINEZ, CITY CLERK of the City of Grand Terrace, California,
do hereby certify that the foregoing Resolution was adopted at a regular meeting, of the _
City Council of the City of Grand Terrace held on the. 23`d day of July, 2013, by the
following vote: w
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AYES:
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NOES:
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ABSENT:
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APPROVED AS TO FORM:
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AGENDA REPORT
MEETING DATE: July 23, 2013 Successor Agency Item
TITLE: Status Report on the Purchase and Sale Agreement and
Escrow Instructions Between the City of Grand Terrace City
Council as the Successor Agency of the Community
Redevelopment Agency and O'Reilly Automotive Stores; Inc.
PRESENTED BY Sandra Molina, Deputy Community Development Director
RECOMMENDATION: 1) Receive and File; and
2) Direct Staff to Inform the;Agency on Resolution of the
Purchase and Sale Agreement.
BACKGROUND:
In April and .May of 2012, the Successor Agency and Oversight Board, respectively,
approved a•Purchase.and Sale Agreement between.the Successor Agency and.O'Reilly
Automotive Stores; Inc. ("Agreement') :to purchase two Agency parceis :upon which to
build an auto parts store. The Oversight Board's Resolution approving the Agreement
was forwarded to the Department of Finance (DOF) and no objections were received
regarding the Agreement.
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The original Agreement was amended administratively by the Executive Director a
number -of times to extend the dates of certain actions necessary to close escrow.
Addendum No. 3; which extended :the construction commencement date and
established reimbursement for soil remediation, was approved by the Agency and
subsequently, by the Oversight:Board on March.6, 2013. Adoption.of the Resolution by
the Oversight Board necessitated review by the DOF.
On June 14, 2013, the City was informed.by the DOF via letter (Attachment 1.) that the
Oversight=Board Resolution:approving Addendum No. 3 was not approved. The:DOF's
basis for rejection 'is that the original Agreement was .invalid on the grounds that the
Agency did not have-.authority to enter'into the original Agreement at-the time it was
entered into and therefore, the Agreement, as,well as Addendum No. 3, is invalid.
DISCUSSION:
Agency Counsel sent an objection letter to the DOF (Attachment 2) stating that the
Agreement was entered into in compliance with existing law at that time and that th.e
D;OF's rejection of the original Agreement and Addendum No. 3 based on retroactive
application; of State law is improper. The objection letter further states that the. DOF's
determination must be reversed. However, as of the date that this report was prepared,
the DOF has not changed its decision"and it is not likely that they will.
Packet-Pg, 1'60,
At this point there are few options for the Agency to pursue. The Agency could litigate,
but that would be a long process, and the Agency does not have a mechanism to pay
for litigation at this time. The Agency could wait until the Long-,Range Property
Management Plan is approved at which time the Agency can then sell the properties.
The Long Range Property Management Plan is due to the DOF in November 2013, and
it would be approved sometime thereafter. In the interim, it is likely that the Agreement
may need to be terminated.
Staff advised O'Reilly of the DOF determination and also of the limited avenues
available. O'Reilly is currently evaluating this information.
FISCAL IMPACT:
There is no fiscal impact associated with this status report. Termination of the
Agreement will require Agency and Oversight Board consideration and action.
ATTACHMENTS:
• 1. Letter from Department of Finance_Grand Terrace OB 2013-04
• 2. Objection Letter to DOF_07-01-13
APPROVALS:
Sandra Molina Completed 07/15/2013 5:15 PM
Richard Shields Completed 07/16/2013 2:31 PM
Finance Completed 07/17/2013 1:38 PM
City Attorney Completed 07/18/2013 9:51 AM,
Community Development Completed 07/18/2013 12:01 PM
City Manager Completed 07/18/2013 12:15 PM
City Council Pending
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�c DEPARTMENT OF EDMUND G. BRL]WN JR. - 1313VERNOR
CACtFOANF F I N A N C E 9 V5 L STREET A BACRAMEN713 CA 1 956 t 4-3706 ■WWW.COF.CA.r.oV jp
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June 14, 2013
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Ms. Cynthia Fortune, Finance Manager V
City of Grand Terrace Successor Agency
22795 Barton Road w
Grand Terrace, CA 92313 0
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Dear Ms. Fortune: a
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Subject: Objection of Oversight,Board Action
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The City of Grand Terrace Successor Agency(Agency) notified the California Department of y
Finance (Finance)of its.March 6, 2013 oversight board (OB)resolution on-March 7, 2013. _M
Pursuant to Health and Safety Code(HSC)section 34179 (h), Finance has completed its review
of the OB action.
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Rased on our review and application of the law, the Agency's OB Resolution 2013-04, which N
authorizes and approves an amendment to the Purchase and Sale Agreement and Escrow m
instructions between the Agency and O'Reilly.Automotive Stores, Inc. (O'Reilly), is not 0
approved.
The sale of property to O'Reilly is not approved at this time; the original Purchase and Sale
Agreement was not executed by June 27, 2011, and HSC section 34181 (a).only allows =
successor agencies to transfer properties that are currently in use for a governmental purpose. cC.0
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HSC section 34181 (a) lists governmental purpose assets to include roads, school buildings,
parks, police and fire stations, libraries, and local agency administrative buildings. HSC section =
34191.3 suspended the requirements of HSC'section 34181 (a)and the Agency's ability to U_
dispose.of assets for non-governmental purposes, until Finance has issued a Finding of o
Completion and has approved the Agency's long range property management plan.
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HSC section 34177 (e) directs successor agencies on the steps to dispose of non-governmental a
purpose assets. Because the Agency has not met all statutory requirements,the sale of c
property to O'Reilly, as-identified above, is not permitted. E
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As authorized by HSC section 341:79 (h), Finance is returning your OB action to the board for
reconsideration. 19
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Ms; Cynthia Fortune 8A.a..
June 1.4,2013
Page 2
Please direct inquiries to"Nichelle Thomas, Supervisor, or Susana Medina Jackson, Lead
Analyst at (916)445-1546: d
Sincerely, V
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STEVE SZALAY
Local Government Consultant n.
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cc: Ms. Betsy Adams, City Manager =
Ms. Linda Santillano, Property Tax Manager, County of San Bernardino C
Mr. Zteven Mar, Bureau Chief, Local Government Audit Bureau, California State c
Controller's Office t
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J & M
JONES & MAYER
ATTORNEYS AT LAW
3777 NORTH HARBOR BOULEVARD•FULLERTON,CALIFORNIA 92835
(714)446-1400 •(562)697-1751 • FAX(714)446-1448 m
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Richard D.Jones• Richard L.Adams II Michael Q.Do Robert Khuu Danny L.Peehnan Q> Jamaar Boyd-Weatherby Thomas P.Duarte Gary S.Kranker Harold W.Patter
Martial Mayer Heron 1.Bettenhausen Elena Q.Gerli Christopher F.Neumeyer Denise L.Rocawich
\ Kimberly Ha11 B*IoW Christian L.Bettenhausen Katherine M.Hardy Kathya M.Oliva Yolanda M:
Summerhill V
James R.Touchstone Paul R.Coble Krism MacNevin Jee Gregory P.Palmer Ivy M.Tsai
Keith F:Collins Ryaa R.Jones
•a Professional law y
Corporation
Of Counsel �
Consultant
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Michael R.Capin Mervin D.Feinstein ILDean J.Pucci � - �
Steven N.Skala&
July 1,2013 0
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Nichelle Thomas
Susan Medina Jackson c.
California Department of Finance
915 L Street.
' Sacramento,CA 95184 y
Re: Department of Finance's Objection to Grand Terrace Successor Agency -M
Oversight Board Resolution.2013-04 regarding the O'Reilly Purchase&Sale
Agreement
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Dear Ms..Thomas, o
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Our office serves as legal counsel for the Successor Agency for the Grand Terrace o
Community Redevelopment Agency("Successor Agency'). In the Department of Finance's w
("DOF')June 14,2013 letter,the DOF made two objections as.it relates to the O'Reilly
Purchase&Sale Agreement.First,DOF objected to Oversight Board Resolution No:2013-04.
Second,DOF objected to the,Purchase&Sale Agreement with O'Reilly Automotive Stores,Inc. c
("O'Reilly. '):The Successor Agency hereby objects-to the DOF's June 14,2013 letter,and
insists that the DOF revise its decision on the following grounds:
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1. The Department of Finance has missed its.WN1tMjV to object to Purchase& Sale `"
Agreement
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The:DOF has missed its:opportunity to object to the sale of the:property involved in the
O'Reilly Purchase& Sale Agreement.The Purchase_&Sale Agreement was entered into on or
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about April 25,2012 pursuant to Oversight.Board Resolution No.2012-11 OB in compliance
- ,:Packet Pg.�164J
Nichelle Thomas
Susana Medina Jackson
July 1,2013
Page 2
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with Health&Safety Code section 3.4181(a)(which permitted the Oversight Board to direct the
Successor Agency to dispose of assets and properties of the former,-redevelopment agency).'This a
action was also submitted to the'DOF pursuant to the requirements existing under statute at1hat
time.The DOFI Tailed to object to the action of the Oversight Board approving of the O'Reilly
Purchase&Sale Agreement within the statutory timeframes as out by sections 34179(h)and
34181 as it existed at the time the action so approving was taken. Therefore,the DOF's attempt N
to retroactively invalidate the Purchase&Sale Agreement is improper and unpermitted.
2. Health&Safety Code section 34191.3 and 34177(e, as added and amended by a
Assembly Bill 1484 of 201-2.cannot be retroactivelyapplied to an action of the Oversight •�
Board taken on or about April 25 .2012 and in compliance with the law as it existed at the
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time.
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Section 34191.3 and certain parts of Section 34177(e)were not enacted until June of °
2012,and,therefore,have no effect upon.the actions of the Successor Agency conducted in a
compliance with the laws as they existed at the time.A fundamental principle of statutory
interpretation•is that statutes generally operate prospectively only,and will not be given,a
retrospective operation that interferes with antecedent rights unless such is the unequivocal and
inflexible import of the terms of the statute and the manifest intention of the Legislature.Z
Therefore,in.order to apply a statute retroactively:such that it interferes:with past actions taken o
in compliance with past law,as.the DOF is.doing here,there must be within that statute express
language of retroactivity or if other sources provide a clear an unavoidable implication that was
the intent of the Legislature. There is also a strong presumption against retroactivity,and in c
order to overcome this presumption,it requires that*
.the Legislature"affirmatively considered the ti
potential unfairness of retroactive application and determined that it was an acceptable price to QI
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pay for the countervailing benefits.' In this case,the DOF's application of section 34179(h)and o
34181 undoubtedly interferes with the Successor Agency's and O'Reilly's antecedent rights. o
Specifically,it interferes with the Successor Agency's right,at the time the action was taken,-to d
enter into a Purchase&Sale Agreement with O'Reilly pursuant to existing law at.the time and
O'Reilly's rights to-receive the property contemplated by the Purchase&'Sale Agreement. 'j
Nothing under,sections 34179(h)or 34181 would.imply that there was-intent by the Legislature °
to retroactively apply those sections to the past actions taken by the Successor Agency. In fact,it d
would appear that the-Legislature did not intend to retroactively disallow the actions.of the p
Successor Agency as it relates to sale of assets-and property,because it has,shown its desire to do Ci
so in other:parts-of the statute.For example,section 34177.3(e)purports to state that"The
Legislature finds'and declares that the provisions of this section are declaratory of existing law." E
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1 Unless otherwise stated,all code references shall be to the California Health&Safety Code.
2 See Myers v.Philip Morris Companies,Inc.,28 Cal.4'"828,840(2002). _ Q
3.See:Thurman v.Bayshoie Transit Management Inc.,203 Cal.AP 4'"1112; 1140(2012).
4 See McClung v Employment Development Department,34 Cal.4 461,475-476(2004).
Packet Pg 1 fi5.
Nichel,le Thomas
Susana Medina Jackson
July 1,2013
.Page 3
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While the Legislature's authority to-interpret its own statutes is:at best questionable5,sections adj41-19(h)and 14181 both lack similar language attempting-to apply the requirements of the
sections retroactively. We.note that the court in City of Emeryville et atv. Ana J. Matosantos
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(Case No.34-2012-80001264=CU WM-GDS)has also similarly found that Assembly Bill No. co
1484 had no retroactive effect upon past:actions taken in compliance with laws existing at the C
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time such actions were taken. Therefore,DOF's retroactive application of sections 34179(h)and
34181 uponihe Purchase:&Sale-Agreement is improper.
Moreover,the DOF's rejection of Oversight Board Resolution No.2013-04 is also • a.
improper.In its June 14,2013 letter,DOF stated that thebasis for rejection of Resolution No.
2013-04 was that the underlying'Purchase&Sale Agreement was invalid.As noted above,the
DOF's retroactive application of a statute passed after a valid:action taken in compliance c b
with
existing law is improper. Therefore,the-basis:upon which the DOF relies to invalidate Oversight
Board Resolution No.2013-04:is improper,and must,be reversed. C
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For the reasons-discussed above,:the Successor Agency-objects to the DO' Vs June 14, CL
2013 Ietter,and insists that the DOF revise its determination. Should you have any questions or
comments regarding this letter,,please contact the undersigned immediately,
truly yours,
ULuy yours,
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Robert Khuu
Deputy Agency Counsel
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Successor Agency for the
Grand Terrace Community Redevelopment Agency
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Enclosure
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5'See Marbury v.Madison,5:U.S. 137(1803);Ajolang v.Employment Development Department;supra,34 Cal.0
at 460-470.
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(6l9/20.12.)Joyce�hPowers�Cityof Grand_T :ace-Qve�ght Board:Resolution.2012-�''
From: TRACEY.mARTINEZ
To: prbperiytax@atc.sbcounty,gov; :rda�s&upport@sco.ta.g6V; redevelopment_...
CC: Adams; Betsy; Powers, Joyce; Simon, Bernie
Date: 5/912,012 4:18 PM c
-Subject. City of.Grand Terrace-Oversight Board Resolution.2012-11 E
Attaithments: itesolution,QB 2012-1i.pdf
Attached please find the fotlov_�Iftg Resolution that was approved at.a Regular'Nleeting of 0yetsigfit.Board Q
of'the:Successor.Agency to the Grand Terrace Red evelopment.Agency:
Resolution,2012-11
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A ResQtiitian iif.the Oversght:Boaid:of the Successor Agency.to khe Grantl Tetrace:Redeve[apXrTent ai
Agency, Grand Terrace, California,4uthprizing and:;Apptovng.the.Sale of Successor Agency Property in s
the 219QU SIQek-of;Barton Road-to a'Reilly Au tomotixe:Stores;Ync.-to develop a new.retailstareF
a
If;:you have any;questions;,please let:me know. >+
Thank"jioti;_ 0
Tracey d
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Tracey Maitlnez•,city Cierk- c
:City of-G-rabd Tefraoe a.
909 436-2230:; d)
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Packet-Pa. 167
RESOLUTION NO, .202-11:08
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A R5$O`WTtON OF THE OVERSIGHT- BOARD DF THE.
SUCCESSOR AGENCY To tHt GRAND TERRA
CE
KEDVELOK NTT AO NCY. GRAND: _kk-AdE- QA�.FpR. A
V6 Zj? G AND cc
APPROVING' THE: SALE WdC8t$0R A ENCY IN 9, , K-0taA RTO W�ROA D
TC MOILLY AUTOMOTIVE STORE -41fl- ! - REW
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REAI L S_
A8XI "M r6sbfted in, .fits_ -$S-Voldflo 4 the Gra
WFRREA%� 04 Terrace
0000volopt'n.0"nt Agency CAgdncy"Y, b
WHOREAS,I ,'the .City Gt,40,4- Terrace:, 44,tod bY ft 'n'y 0..tPrbed6fh6 ft 0
4Wbe orA*OAOhe-:P�Ter R ev vp Agency'
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;Agency 0
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t Abxllk#fo W,L g-1gt oe:,;liss 1 0dev fop j tlk E_&' _$-- p sp q, towa;
A nid r-Watto-fitapWit"_0, !IR*W1lf, 1Y).-fort lose of
purp
('"POP
-Purchasing th&2- 1 O
in
.-WH 'jhi Agep c 'dVAQANy':entered in far tb :so)b ofthe C
'f-A6XI I'd,--and.the-ultifnatdodt fte-6f California
WHEIkS'-'AS Ahezetpaqtrn6hi-,b9
P-6doodlopment'Assmiation- qual., Y. act'd q.11A orvok .activity Q
related jo the twe.d.
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W HOR0 1v0d<aft t,-jamuaty:lbl:, and with 0
the_ -wind -dbws, requirements pf ABX1 26 Jn',,r6W- too -$ ccessor Agency resumed
'n'. fiatib-na-f&AhLe'._,',,§ald,d, AhO.Pr re-quirem AJ3XI 16
f , dpeftyjUnd dlspqsXIPn is-of
,gtid-1hp Hiwif C.'.c]e onaffb,00--..Y*..AtW-26;'and_'
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i§ been conducted
' EREASj 'jhi� sale .of tle ,prbpft,�a ucted 'I h 4,' hher that is
W14 _ __. I the
e 6f th — * . , .. . ...`manner.-, 1. - 0
almodatmaximizin' Abip.vWu e,Pro -'eily.,--and :6
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H5RE- d A% pursuant; to -section bf the Hedit an Sdbty Code, the
Oversight Board ,has the authorit y to &6, -the Successor Agenoy, to. .dispose of
property.
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NOWTHEiREFOR- E, BE 4T RESO,LVED-jay the-Oversight Board, as follows:
SECTION 1. The 'Oversight Board finds, -and determines that. 'the foregoing
recitals,are true and.correct.
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aECTl.CN. 2. The wersiht Board finds that
the sale of;the Property has:.been
conducted. in a manr'er :that is aimed at msxim ing the. Value of the_ Property.
U-C-0 H I The Oyorslgl t :Board lhere4y the ;sale of the- Property,
pursuant :to.�Heelth .& Safety -Code : 341811 that. was :approved :by .the Successor
Age'ncylySuccessor'Agency Resof atit n N.a:-20 - cc
SECTION 4. T. Successor Agency is;:kier4�y airtho;'ized.to eXeeute .the :sale s
mom en t, fteched as Exhipifi`"v atii td'I nec a`'ary actrons`to ompfete,the sale
"of f 'Pro
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SECTtQi `5.• he. F_icecutive Di vector =of e; s ,accessoc A enc is hereby
T. 1. g:. y y o
l%grizgd:to` a a all necessary actions to•complete4thesale`of=tfie P�coperfy,including, _
but ibt bruited to rneeting tFie`�equir`ements.af:ABX'1 26; Qr:any ott ervpplica1. a laver.:
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SECTt01 6:. The SuccescorencY shall iri'airtta Yot 'hle: s:a-_:puflc_record this Q
Resdlufiora prayed hereby:
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; _tCTION;7. This.R -se{: r,Qn shall.► o e effectW.."tyritil'iiiee-busiriess days after
a d!
Walt,Static low. an
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I;- Tracey`R. Vart niz; City C-lerk of tl e.City -of Grar►tl •Terrace acting as the =
:Secretary fo -the Oversight. 8gard' of the''Successor A&hOy- to `46 Grand Terrace
Bede-elopment Agency,-do Hereby cert�ly that-;the•#ortogoing:Resolution was introduced d,
a d.:adopted at a reguJ2[r meeting of ttie='O;e�;ght.Board:held,on the li d day of May, o
2012:.by thd following vote: Ci
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AYES: Boardrrierritiers Saks, Sidoti, Mitchell,and Mlranda; Vice-Chairman
Powers and'Cha ratan-Stanckievi itz
NOES: 'None
ABSENT:' None a
ABSTAIN: None
Tracey R. artinez, cretalt