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Public Hearings
Item No. 1.
MEETING DATE: 07/17/2023
 
TO: HONORABLE MAYOR AND COUNCILMEMBERS
 
FROM: JIM SADRO, CITY MANAGER
By:  Susan Kim, Director of Community & Economic Development
 
SUBJECT:
DULY NOTICED PUBLIC HEARING TO CONSIDER A REQUEST FOR ZONE CHANGE 23-01 TO AMEND TITLE 18 (ZONING) OF THE LA HABRA MUNICIPAL CODE RELATING TO 24-HOUR GENERAL RETAIL USES AND PERSONAL SERVICES AND THEIR HOURS OF OPERATION

RECOMMENDATION:

 
That the City Council take no further action on Zone Change 23-01 and direct staff to withdraw this application from further review. 

DISCUSSION:

On February 6, 2023, the City Council directed the Community and Economic Development Department to initiate Zone Change 23-01 involving amendments to Title 18 (Zoning) of the La Habra Municipal Code (LHMC) related to general retail businesses and their 24-hour operations. The proposed amendments involved an update to the City's Zoning Code to include a clear definition for general retail and an update to the Land Use Matrix to require a Conditional Use Permit (CUP) for general retail businesses that wish to operate 24-hours a day. The CUP process was intended to give the opportunity for the City to review each application, on a case-by-case basis, and tailor operating conditions with a focus on the implementation of public safety measures.

As an example, each application could involve an analysis of the calls for police service, a review of any security camera systems, and review of the property location, including parking lot areas. Any deficiencies related to maintaining required public safety measures would be addressed as part of the CUP. The CUP process typically involves public notification, allowing residents and property owners the opportunity to express their comments and concerns regarding proposed changes to a given business location. In the event that a general retail business fails to uphold and comply with City standards related to their 24-hour operations, a CUP may be modified or even revoked. The Draft Ordinance prepared for Zone Change 23-01 and presented to Planning Commission is provided as Attachment 1.

Staff surveyed other cities to see if they required a CUP for 24-hour operations, utilizing the League of California Cities, Housing, Community and Economic Development (HCED) List Serve. Based on their HCED inquiry, staff received the following responses:
  • City of Whittier requires a CUP for businesses that operate past 12:00 a.m. and/or before 6:00 a.m.
  • City of Citrus Heights requires a CUP for convenience stores that operate past 10:00 p.m.
  • City of Simi Valley requires a CUP for any business that is open to the public between the hours of 11:00 p.m. and 5:00 a.m.
  • City of Cupertino requires a CUP for businesses that operate between 11:00 p.m. through 7:00 a.m.
  • City of Sacramento has restrictions limiting markets to the hours of 8:00 a.m. to 7:00 p.m.
 

Staff also reached out directly to the cities that surround La Habra and found that:
  • City of La Mirada only permits retail businesses to operate between the hours of 7:00 a.m. to 11:00 p.m.
  • Cities of Fullerton and Buena Park do not have any limitations on the hours of operation for retail businesses.
  • City of Brea does not limit the hours of operation for retail businesses; however, they do require a CUP for convenience stores.
In order to ensure that affected businesses were aware of the proposed amendments, staff compiled a list of various general retail businesses operating within the City of La Habra that would be subject to Zone Change 23-01. Based on this data, on April 20, 2023, staff mailed letters to the five businesses that would be impacted by the proposed amendments to inform the store managers and owners of the intent of Zone Change 23-01. The letters included the date in which the Planning Commission would consider the proposed amendments. The five businesses included:
  1. 7-11 at 381 East Whittier Boulevard (Operation since 1990)
  2. 7-11 at 100 West La Habra Boulevard (Operation since 2014)
  3. 7-11 at 2000 West La Habra Boulevard (Operation since 1986)
  4. 7-11 at 2001 East La Habra Boulevard (Operation since 1988)
  5. 7-11 at 541 West Imperial Highway (Operation since 1976)
Staff did not receive any correspondence from these five businesses in response to the City's notices; however, staff did receive a telephone call from one of the property owners that requested additional information prior to the Planning Commission meeting.

On May 8, 2023, staff presented Zone Change 23-01 to the Planning Commission. Following the staff report, the Commission requested additional information from staff regarding the specific incidents that were the impetus for the proposed Zone Change. Staff indicated that criminal activity occurred at one of the five affected businesses during the early morning hours in 2022, bringing attention to the fact that the City does not require any limitations on the hours of operation for retail businesses. Commissioners asked whether the cities that set a limitation on hours of operation had noticed a reduction in crime; staff did not have any data to support this conclusion. Commissioners discussed with staff the merits or setting hours of operation versus requiring a CUP for 24 hour operations, in that any business that operated anything less than 24 hours, even one minute, could be exempt from the CUP requirement. Commissioners also asked whether they could waive the processing fee for the CUP for existing businesses; staff stated that this was not under the purview of the Commission; however, Council could consider a fee waiver if the Zone Change were recommended for approval.

During public comments, Mr. Ranjit Singh, the owner of the 7-11 business located at 100 West La Habra Boulevard, expressed concerns that the CUP application fee of $6,491, along with the costs for providing additional security measures that may be required by the CUP, would prove to be burdensome. Mr. Jatinder Jhaj, the owner of the 7-11 business at 541 West Imperial Highway, also spoke in opposition of the proposed CUP requirement. Mr. Jhaj requested that the City set specific hours of operation for retail rather than require a CUP for retail that operates 24 hours per day. Additional affected business owners were in the audience; however, they did not comment during the public hearing.

Following the public comment portion of the meeting, the Commission had additional discussions with staff regarding the merits of setting hours of operation versus requiring a CUP. Staff offered to meet with the affected business owners to receive further input on the Draft Ordinance prior to presenting the Zone Change to Council. After completing their deliberation, the Planning Commission voted 3-1 to approve a resolution recommending that the City Council approve Zone Change 23-01. The Planning Commission Staff Report, Resolution, and Minutes are provided as Attachments 2, 3 and 4, respectively.

Subsequently, on May 24, 2023, staff met with four of the five affected business owners to further discuss Zone Change 23-01. The owners of the 7-11 business at 2001 East La Habra Boulevard were unable to attend the meeting. The business owners collectively requested that the City not move forward with approval of Zone Change 23-01, as it would be their preference to work among themselves to address safety concerns and assured staff that they would ensure adequate site security. The business owners also informed staff that as franchisees, if they were not open 24 hours per day, the corporate entity would penalize each franchisee by requiring financial payment equal to approximately four percent of the total sales, which they stated would severely impact their profits, making it more difficult to continue being a successful business in La Habra. In light of these concerns, staff is recommending that the City Council take no further action and direct staff to withdraw Zone Change 23-01 from further review at this time. 
 
 

If the Council desires to require a CUP for retail businesses that operate 24 hours per day, the attached ordinance would be subject to consideration by Council: 

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA HABRA, CALIFORNIA, APPROVING ZONE CHANGE 23-01 TO AMEND TITLE 18 (ZONING) OF THE LA HABRA MUNICIPAL CODE RELATING TO 24- HOUR GENERAL RETAIL USES AND PERSONAL SERVICES AND THEIR HOURS OF OPERATION AND MAKING A DETERMINATION THAT THE ORDINANCE IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO SECTION 15061(B)(3) OF THE CEQA GUIDELINES.

If the attached ordinance is introduced by Council, it would come back before Council at its next meeting for adoption.

Alternatively, Council could direct staff to prepare a draft ordinance limiting the hours of operation of retail businesses to specific hours of operation and requiring a CUP for any businesses that want to operate outside the set hours of operation. Staff would take that subject ordinance back to the Planning Commission for review at a public hearing and to request a recommendation on its approval by Council. It should be noted that, depending on the proposed limits on hours of operation, a potential ordinance could impact additional retail businesses in the City, depending on the hours they operate.

FISCAL IMPACT/SOURCE OF FUNDING:

If approved, a general retail business that requests 24-hour operations will be required to process a CUP which includes a processing fee, paid to the General Fund, in the amount of $6,491.

GENERAL PLAN RELEVANCE/CITY COUNCIL GOALS & OBJECTIVES:

The proposed project is related to the following General Plan policies:
  • PS 1.7 Security and Design Features. Requires that security measures are integrated into the design of new development projects and support the incorporation of Crime Prevention through Environmental Design (CPTED) principles, or other comparable concepts.
  • PS 1.8 Review of Development Proposals. Include the LHPD in the review of development proposals to ensure that projects adequately address crime and safety.
The proposed project will achieve the following elements of the Fiscal Year 2022-2023 City Council Goals and Objectives:
  • Goal 5 Development Activity and Business Assistance
    • Objective R: Review the Zoning Code on an ongoing basis and process amendments that ensure compliance with recent State legislation, streamline project processing, remove unnecessary regulations, and/or make the Zoning Code easier to implement.

Attachments