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HomeMy WebLinkAbout10844 City Clerk's Office Item # R7 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: November 25, 2024 TO: President Mark Aliff and Members of City Council CC: Mayor Heather Graham VIA: Marisa Stoller, City Clerk FROM: Elizabeth Drake, Assistant City Attorney SUBJECT: AN ORDINANCE REPEALING SECTION 3, 4, 5 AND 6 OF CHAPTER 2 OF TITLE IX AND CERTAIN SECTIONS OF THE PUEBLO MUNICIPAL CODE RELATING TO CABARET LICENSES SUMMARY: Attached for consideration is a proposed Ordinance repealing the requirement for Cabaret Licenses. PREVIOUS COUNCIL ACTION: PMC 9-2-3 was enacted in 1957 and modified in 1973 and 1982. 9-2-4 was enacted in 1957, and last modified in 2023 to allow for petitions, remonstrances, or otherwise as evidence at a licensing hearing rather than petitions or testimony. Sec. 9-2-5 was enacted in 1957 and only modified once in 1982. Sec. 9-2-6 was last modified in 2022 to amend the number of days for filing of review. BACKGROUND: Sec. 9-3-2, PMC, requires liquor licensed premises to obtain a cabaret license if they have anyone including employees, patrons or guests engage in social dancing or dance performance or exhibition with or without music. Meaning that business owners must obtain this license or admonish patrons from swaying or tapping their feet as code does not define dancing. Of the 10 Colorado municipal codes reviewed, none require licenses in the same manner as Pueblo i.e. to allow liquor licensed premises to have dancing. (Those cities are Canon City, Arvada, Brighton, Centennial, Commerce City, Colorado Springs, Fort Collins, Lakewood, Thornton and Boulder). Additionally, one municipality, Commerce Currently liquor licensed premises that hold a cabaret license pay $200 per year to renew in addition to fees associated with the liquor license. To obtain a cabaret license, an establishment must pay a $300 fee for new license and conduct a mailing to the businessesand residents within a 500-foot radius. As each location is unique it is hard to pinpoint that cost, however, a recent license applicant spent $860 for the mailing fees and additionally had 2 staff members at the post office processing the certified mailing cards for 2 hours (4 man hours) in addition to the time it takes to prepare the letters and envelopes. Costs can also vary if the application is done in conjunction with the application for liquor license as that also requires contacting residents and businesses in a larger but overlapping area both contacts can be done simultaneously. If, however, the application is not done at the same time as the liquor license application then renewal time for both licenses will likely be different, placing an additional burden on the business and City staff to track. City staff spend resources including time processing these licenses and applications preparing the maps and surveys for the Liquor and Beer Licensing Authority to approve the GIS map. Once approved and mailed, it takes additional City resources to post notices of the hearing and prepare for the public hearing at the Liquor and Beer Licensing Authority. In addition, it takes resources of the Liquor and Beer Licensing Authority to conduct the hearing. Departments involved in a new license include City Clerk, Law Department (review, advising Liquor and Beer Licensing Authority, and drafting final orders of the board), and the Liquor and Beer Licensing Board, additionally reviews from Fire Department, Regional Building, Planning (Zoning), Health Department, Sales Tax, Finance, GIS. No one recollects a single public comment, let alone an objection, at the final Liquor and Beer Licensing Board meeting to approve only a cabaret license. 2024 has 35 renewal licenses and 5 new or still pending approval as of July 2023 had 41 licenses issued both renewal and new (17 were new licenses). Prior licenses were tracked in a different system so numbers are difficult to verify. Members of the Liquor and Beer Licensing Board have been approached by local musicians stating that they are not being booked because establishments are afraid if they have live music and patrons dance, they risk having a violation on their liquor licenses. FINANCIAL IMPLICATIONS: License fees brought in approximately $9,900 in 2023. However, this number is not offset by cost of resources and materials used by City in issuing and monitoring licenses. BOARD/COMMISSION RECOMMENDATION: Liquor and Beer Licensing Board members have expressed their support for this change. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: Not approving these changes will mean businesses will still incur these expenses and City resources will be used in issuing licenses. RECOMMENDATION: Approval of the Ordinance. ATTACHMENTS: 1. Ordinance - Cabaret License ORDINANCE NO. 10844 AN ORDINANCE REPEALING SECTION 3, 4, 5, AND 6 OF CHAPTER 2 OF TITLE IX AND CERTAIN SECTIONS OF THE PUEBLO MUNICIPAL CODE RELATING TO CABARET LICENSES WHEREAS, t all powers and authority vested under Colorado law; and WHEREAS, City is business friendly and requiring Cabaret Licenses as structured puts undue burden on local liquor licensed establishments; and WHEREAS, few, if any, other municipalities in Colorado still require Cabaret Licenses for any dancing in a liquor licensed establishment; and WHEREAS, issuing, maintaining and regulation of Cabaret Licenses utilized City resources; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: (brackets indicate matter being deleted, underscoring indicates new matter being added) SECTION 1. Section 9-2-3 is hereby repealed. Sec. 9-2-3. Cabaret license; definitions. \[ (a) Beer licensed premises shall mean any premises owned or possessed by a person licensed under the Colorado Beer Code to sell fermented malt beverages for consumption on such premises or on and off such premises, except premises operated under a special event permit. (b) Liquor licensed premises shall mean any premises owned or possessed by a person licensed under the Colorado Liquor Code to sell alcoholic beverages by the drink for consumption on such premises, except premises operated under a club or arts license or special event permit. (c) Cabaret shall mean any liquor licensed premises or beer licensed premises, as defined in subsections (a) and (b) above, on which one (1) or more employees, entertainers, patrons or guests of the licensee are allowed to engage in social dancing or in a dance performance or exhibition, either with or without musical accompaniment. (d) Board shall mean the Liquor and Beer Licensing Board of the City.\] SECTION 2. Section 9-2-4 is hereby repealed. Sec. 9-2-4. - Application; hearing; fees; rules. \[ (a) Applications for original issuance or transfer of ownership or location of cabaret licenses shall be filed in triplicate with the City Clerk on forms which shall contain such information as the Board may require. The Board shall schedule a public hearing on each application not less than thirty (30) days from the date of filing and shall give public notice of such hearing both by publication pursuant to Section 1-7-6 of this Code and by posting notice on the premises pursuant to the procedure set out in Section 44-3-311, C.R.S. At least ten (10) days prior to the date of hearing, on any application for original issuance or transfer of location of a cabaret license, the applicant shall serve copies of the notice of hearing on all owners, lessees and adult occupants of all private property within five hundred (500) feet of the proposed cabaret premises. Such notice shall be given in a form approved by the Board and in the manner provided by Section 1-1-11 of this Code, except that notice shall be issued and served and proof of service shall be filed by the applicant or his or her agent rather than by the City. The distance referred to above is to be computed by measurement along the shortest straight line between any neighboring property line and any exterior wall of the proposed licensed premises. (b) The public hearing shall be conducted as a quasi-judicial hearing under procedures set out in Chapter 7 of Title I of this Code. In determining whether to grant or deny an application for original issuance or transfer of location of a cabaret license, the Board shall consider the moral character of the applicant, reasonable requirements of the neighborhood and the desires of neighborhood residents for cabaret licensed premises as evidenced by petitions, remonstrances, or otherwise, the number of cabarets located in or near the neighborhood, and the probable effect of issuance of the license on the public health, safety, and morals of the community. (c) The annual fee for original issuance, renewal or transfer of location or ownership of a cabaret license shall be two hundred dollars ($200.00). Applications for original issuance or transfer of location or ownership of a cabaret license shall also be accompanied by a processing fee of one hundred dollars ($100.00). Cabaret licenses shall expire one (1) year from date of issuance unless sooner renewed. Applications for renewal of existing licenses shall be filed with the City Clerk not later than forty-five (45) days before the date of license expiration. The Board may hold a public hearing on any renewal application. (d) Ownership of cabaret licenses shall not be transferable except with prior approval of the Board after public hearing. In determining whether to permit the transfer of ownership, the Board shall consider only the moral character of the transferee applicant. If such transfer is approved, the transferee shall pay the full annual fee and shall be issued a new license. (e) The Board is hereby authorized to establish rules and regulations to implement the provisions of this Chapter.\] SECTION 3. Section 9-2-5 is hereby repealed. \[Sec. 9-2-5. - Prohibited acts. (a) No person shall operate a cabaret in the City without a valid license issued hereunder. (b) No person shall operate a cabaret on any liquor licensed premises at any time when the sale of alcoholic beverages on the premises is prohibited by law. (c) No person shall operate a cabaret on any beer licensed premises at any time when the sale of fermented malt beverages on the premises is prohibited by law. (d) No cabaret license shall be valid or used for any premises other than the premises specified and defined in the application and license issued based thereon. (e) No cabaret licensed premises shall at any time be operated as a public dance hall as defined in this Chapter, and nothing contained herein shall be construed as repealing or affecting any ordinance regarding public dance halls. (f) No person shall operate a cabaret at any time when the liquor license or fermented malt beverage license for the cabaret premises has been suspended, revoked or denied renewal, or has expired. (g) No cabaret license shall be issued to any person except the liquor licensee or fermented malt beverage licensee for the proposed cabaret premises. (h) Neither the issuance of a cabaret license nor the payment of any fee required hereunder shall relieve the licensee from responsibility for payment of any other fee, charge or tax imposed by law, nor from compliance with any other applicable provision of law.\] SECTION 4. Section 9-2-6 is hereby revoked. Sec. 9-2-6. - Revocation; suspension; appeal; penalties. \[ (a) In addition to any other penalty provided by law, any cabaret license may be suspended, revoked or denied renewal by the Board after a hearing, for violation by the licensee or his or her agent or employee of any provision of this Chapter or of the Colorado Beer Code, Colorado Liquor Code or Colorado Criminal Code if such violation arises out of the operation of the cabaret premises. (b)The hearing referred to in Subsection (a) above shall be conducted as a quasi-judicial hearing under Chapter 7 of Title I of this Code. An affected licensee shall be given at least ten (10) days' notice of the hearing. Any such hearing may be consolidated with a hearing conducted by the Board under authority granted by the Colorado Liquor Code or Colorado Beer Code. (c) Judicial review of any final Board action may be had under Rule 106, C.R.C.P., provided that proceedings for such review are filed within twenty-eight (28) days thereafter. (d) Any person who operates a cabaret in this City without a valid license therefor, or any person who violates any provision of Section 9-2-5 of this Code shall be punished as provided in Section 1-2-1 of this Code.\] SECTION 5. The officers and staff of the City are authorized and directed to perform any and all acts consistent with the intent of this Ordinance to effectuate the policies and procedures described herein. SECTION 6. This Ordinance shall become effective thirty (30) days after final action by the Mayor and City Council. Action by City Council: Introduced and initial adoption of Ordinance by City Council on November 11, 2024. Final adoption of Ordinance by City Council on November 25, 2025. President of City Council Action by the Mayor: Approved on . Disapproved on based on the following objections: Mayor Action by City Council After Disapprovalby the Mayor: Council did not act to override the Mayor's veto. Ordinance re-adopted on a vote of , on Council action on _______ President of City Council ATTEST City Clerk