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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